Amid the rising wild swings in the Indian stock markets, domestic brokerage SMC Global Securities has suggested four stocks- ICICI Bank Ltd, Mastek Ltd, Ashok Leyland Ltd and Laurus Labs Ltd- to bet for better potential returns. The brokerage has picked the former two based on their sound fundamentals, while the latter two appear to be strong on the technical parameters. Here's what the brokerage has to say about these counters:
ICICI Bank | Buy | Target Price: Rs 1,512 | Upside: 18%
ICICI Bank is a large private sector bank offering a diversified portfolio of financial products and services to retail, SME and corporate customers. The Bank has an extensive network of branches, ATMs and other touchpoints. It has robust digital platforms which offer reliable, seamless and scalable services, delivering best-in-class customer experience. It added 26 branches and trimmed 982 ATMs in Q2FY25, taking the overall tally to 6613 branches and 16120 ATMs by September 2024. The bank is showing strong growth in business and improved asset quality. It is leveraging digital and technology across businesses for growing the risk calibrated core operating profit. It is seeing increasing adoption and usage of its digital platforms by its customers. Thus, it is expected that the stock will see a price target of Rs.1512 in 8 to 10 months.
Laurus Labs | Buy | Target Price: 565-570 | Stop Loss: Rs 470
Laurus Labs has been consolidating in a broader range of Rs 445-505 with prices holding well above its key moving averages on daily and weekly intervals since last two months. Last week stock has given a fresh breakout above the Symmetrical Triangle pattern on short term charts while on broader charts fresh Bullish momentum has been witnessed above the W pattern as stock has formed a double bottom pattern around 445 levels and took support at its 200 days exponential moving average on daily charts. Therefore, one can accumulate the stock in a range of Rs 505-510 for the expected upside of Rs 565-570 levels with stop loss below Rs 470 levels.
Mastek | Buy | Target Price: Rs 3,654 | Upside: 13%
Mastek is an enterprise digital and cloud transformation partner that engineers' excellence for customers in industries such as healthcare and life sciences, retail and consumer, manufacturing, financial services, and the public sector, across 40 countries, including the UK, US, Europe, the Middle East, and Asia Pacific. A preferred Oracle, Salesforce, Microsoft, AWS, and Snowflake partner, Mastek has over 5000 employees and delivers right fit solutions to both medium businesses and global Fortune 1000 clients. The performance of the company across the Americas, UK, and European market continued to be resilient and also driving the growth. It continues to win and onboard new customers across the geography and strong deal backlog. The strong deal pipeline with an order book of Rs. 2,195 crore indicates future growth visibility. Thus, it is expected that the stock will see a price target of Rs 3,654 in 8 to 10 months.
Ashok Leyland | Buy | Target Price: 244-245 | Stop Loss: Rs 205
Ashok Leyland has been trading lower as prices witness a corrective phase from its 52-week high of Rs 264 levels till Rs 205 levels over the period of weeks on broader charts. However, the stock managed to take support around its 200 days exponential moving average and witnessed a fresh pullback rally thereon. Technically stock has formed an Inverted Head & Shoulder pattern on daily time frame with breakout seen above the neckline of the pattern formation. The positive divergences on secondary oscillators along with price action suggest a next round of bullish momentum into the stock. Therefore, one can accumulate the stock in range of Rs 220-225 for the upside target of Rs 244-245 levels with stop loss below Rs 205 levels