Amid the rising selling pressure in the Indian stock markets, domestic brokerage firm SMC Global Securities has suggested four stocks- IPCA Laboratories Ltd, V-Guard Industries Ltd, Torrent Pharmaceuticals Ltd and Manappuram Finance Ltd- to bet amid the scarce opportunities to make money. 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:
Torrent Pharmaceuticals | Buy | Target Price: Rs 3,700-,3750 | Stop Loss: Rs 3,200
Torrent Pharma has been maintaining its uptrend and can be seen fluctuating well above its all-important moving averages on broader charts. Last week after a series of consolidation phase stock gave a decisive move above its key resistance level of Rs 3,400 level. On secondary oscillators positive divergences in secondary oscillators along with price action suggest next upside into the stock. Therefore, one can accumulate the stock in range of Rs 3,400-3,435 for the upside target of Rs 3,700-3,750 levels with stop loss below Rs 3,200 levels.
IPCA Laboratories | Buy | Target Price: Rs 1,918 | Upside: 20%
IPCA Labs is an Indian pharma player, which produces theobromine, acetylthiophene, and p-bromotoluene as active pharma ingredients (APIs). IPCA sells these APIs and their intermediates globally. The company is doing well and expects EBITDA margins would improve to 21 per cent going forward. A healthy product mix and raw material cost optimization likely to improve the financial position of the company. Strong growth in the domestic formulation business with increased opportunities in the API space and strong geographical presence would support earnings going forward. Thus, it is expected that the stock may see a price target of Rs 1,918 in 8 to 10 months.
Manappuram Finance | Buy | Target Price: Rs 222-223 | Stop Loss: Rs 170
Recently, Manappuram Finance marked its 52-week low of Rs 138.35 in month of October, and witnessed a smart recovery there on to catch up a fresh momentum above its 200 days exponential moving average on daily charts. Last week stock witnessed a series of consolidation and seen trading range bound despite overall selling pressure in markets. The recovery is expected to continue into a stock as a fresh breakout has also been observed above the ascending triangle pattern. Therefore, one can buy a stock after a decisive breakout above 190 levels for the expected upside of Rs 222-223 levels with stop loss below Rs 170 levels.
V-Guard Industries | Buy | Target Price: Rs 530 | Upside: 27%
V-Guard Industries manufactures consumer electrical and electronics products. Its product range. It boasts strong cash flows from operations. It has delivered healthy topline growth and margin improvement due to pricing actions taken to cover input cost movements, with adjustments ranging from 1-3 per cent across categories. The growth momentum is expected to continue in the quarters ahead. Its capex planned at approximately Rs.100 crores per year to support capacity expansion indicates sustainable growth outlook. Its investment in disruptive technology solutions would give long-term benefit to the company. Thus, it is expected that the stock may see a price target of Rs. 530 in 8 to 10 months.