Amid rising volatility in the Indian stock markets, domestic brokerage SMC Global Securities has shared four stocks- Uno Minda Ltd, Amara Raja Energy & Mobility Ltd, Chambal Fertilizers & Chemicals Ltd, Muthoot Finance Ltd- to bet amid the scarce opportunities to make money. The brokerage has picked the former two based on sound fundamentals, while the latter two appear to be strong on technical parameters. Here's what the brokerage has to say about these counters:
Uno Minda | Buy | Target Price: Rs 1,182 | Upside: 18%
Uno Minda is the market leader in EV system manufacturing as well. It has a portfolio of over 10 EV components, most of which are under production and are being supplied to leading EV 2-wheeler OEMs. The company is setting up a greenfield four-wheeler lighting plant in Pune. It has achieved outstanding operational and financial performance as compared to the previous quarter with recovery in petrochemicals, new energy and retail segment, financial services and sustained growth in digital services business. It continues to deliver multiple growths across businesses and ongoing investments and acquisitions would continue to drive the next leg of growth. Retail, telecom and new energy are poised to become the upcoming growth drivers over the next two-to-three years, given the growth initiatives in each of businesses with a focus on the India opportunity. Thus, it is expected that the stock will see a price target of Rs 1182 in 8 to 10 months’ time.
Muthoot Finance | Buy | Target Price: Rs 2,045-2,050 | Stop Loss: Rs 1,700
Muthoot Finance has been maintaining its bullish run since last six months as prices are gradually moving up from Rs 1,400 levels towards Rs 1,900 levels over the defined time frame. The stock can be seen rising with formation of higher low & higher high patterns on daily and weekly intervals, with prices sustaining above its 200 days exponential moving average as well. Last week once again a fresh bullish momentum was seen rising above the key resistance level of Rs 1,850 along with positive divergences seen on secondary oscillators. Therefore, one can buy the stock in the range of Rs 1,860-1,880 for the upside target of Rs 2,045-2,050 levels with stop loss below Rs 1,700 levels.
Amara Raja Energy & Mobility | Buy | Target Price: Rs 1,931 | Upside: 28%
Amara Raja encompasses a diverse range of solutions and products, which includes energy storage solutions, Lithium-Ion cell manufacturing, wide range of EV chargers, Li-ion battery pack assembly, automotive and industrial lubricants, and exploration of new chemistries, among others. It supplies automotive batteries under OE relationships to Ashok Leyland, Ford India, Honda, Hyundai, Mahindra & Mahindra, Maruti Suzuki, and Tata Motors amongst others. Amara Raja’s industrial and automotive batteries are exported to over 50 countries around the world. The company enjoys strong brand recognition in the lead acid batteries in India. It forayed into the new energy business in 2022 with an ambitious capex plan of Rs 9,500 crore for setting up a Giga Corridor in Telangana and technology association with Gotion-InoBat-Batteries and Jiangsu Highstar indicates sustainable business growth going forward. Thus, it is expected that the stock will see a price target of Rs 1,931 in 8 to 10 months.
Chambal Fertilizers & Chemicals | Buy | Target Price: Rs 600-610 | Stop Loss: Rs 470
Chambal Fertilizers & Chemicals witnessed a pullback move and retraced back towards Rs 480 levels, forming lower high pattern on daily interval after marking its 52-week high of Rs 574.35 in month of June 2024, Last week once again a renewed momentum seen picking up as stock has given a fresh breakout above the falling trend line of downward sloping channel. Therefore, one can buy the stock in range of Rs 520-515 for the upside target of Rs 600- 610 levels with stop loss below Rs 470 levels
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