Amid the quick rebound in the Indian stock markets, domestic brokerage firm SMC Global Securities has suggested four stocks- Shriram Finance Ltd, Radico Khaitan Ltd, REC Ltd, Bhansali Engineering Polymers Ltd (BEPL)- 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:
Shriram Finance | Buy | Target Price: Rs 3,577 | Upside: 15%
Shriram Finance is India's largest retail asset financing NBFC. It is the flagship company of the Shriram group, which has significant presence in consumer finance, life insurance, general insurance, housing finance, stock broking and distribution businesses. It is capitalized with adequate liquidity buffers for future growth. Its core loan products have delivered exceptional performance, driving its growth in AUM, branch network expansion and its sustained investments in digital transformation, which are now yielding tangible results. Thus, it is expected that the stock will see a price target of Rs 3,577 in 8 to 10 months.
Bhansali Engineering Polymers | Buy | Target Price: 162-165 | Stop Loss: Rs 128
BEPL stock has been trading lower since long as prices have seen a corrective phase from its 52 week high of Rs 177 levels till Rs 118 levels over the period of weeks. However the stock managed to take support there and bounced back sharply once again to surpass its 200 days exponential moving average on daily charts. Technically a fresh breakout has been observed above the Inverted Head & Shoulder pattern last week with a sudden spike in average volumes. Therefore, one can accumulate the stock in range of Rs 140-143 for the expected upside of Rs 162-165 levels with stop loss below Rs 128 levels.
Radico Khaitan | Buy | Target Price: Rs 2,958 | Upside: 26%
Radico Khaitan is among largest manufacturers of IMFL in India. Its brand portfolio includes Magic Moments and Verve Vodka, Morpheus and Morpheus Blue Brandy, 8PM and 8PM Premium Black Whisky, Rampur Indian Single Malt, Jaisalmer Indian Craft Gin, 1965 Spirit of Victory Rum, After Dark Whisky, Contessa Rum and Old Admiral Brandy. It also has a strong presence in the CSD market, serving the Indian Armed Forces. It has a total owned capacity of 320 million litres and operates 43 bottling units. It is also one of the largest exporters of Alcoholic beverages from India, with brands available in over 102 countries. The company is focusing on innovation and strengthening its premium brands. The company expects 15-18 per cent volume growth in the P&A segment for FY25 on the back of continued strong demand for flagship brands. With input cost pressure easing, it expects to deliver steady profitable growth going forward. Thus, it is expected that the stock will see a price target of Rs 2,982 in 8 to 10 months.
REC | Buy | Target Price: 620-625 | Stop Loss: Rs 510
REC stock has been maintaining its downtrend on broader charts as prices can be seen fluctuating within a declining channel and fluctuating around its 200 days exponential moving average on daily charts. Last week, the stock has given a fresh breakout above the falling trend line of the channel with positive price action accompanied by larger volumes. 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 550-560 for the upside target of Rs 620-625 levels with stop loss below Rs 510 levels.