Amid the rising selling pressure in the Indian equity markets, domestic brokerage firm SMC Global Securities has suggested four stocks- Godfrey Phillips India Ltd, Cholamandalam Investment and Finance Company Ltd, Zydus Wellness Ltd and Lemon Tree Hotels Ltd- to bet amid the scarce opportunities to make money. The brokerage has picked the former two based on their strong technical charts, while the latter two appear to be strong based on their sound fundamentals. Here's what the brokerage has to say about these counters:
Godfrey Phillips India | Buy | Target Price: Rs 6,400-6,450 | Stop Loss: Rs 4,600
Godfrey Phillips has been trading lower as prices seen drifting below its 200 days exponential moving average on daily charts since past few months. The correction has been seen on the back of long unwinding. Technically stock took support around 4200 levels and bounced back sharply to regain a fresh bullish momentum above its 200 days exponential moving average on daily charts once again. Breakout has been witnessed above the long term bearish channel as well after a rounding bottom formation on daily charts. The move is getting supported, by rising volumes along with positive divergences on secondary oscillators as well. Therefore, one can accumulate a stock on dips in the range of Rs 5,350-5,300 for the expected upside of Rs 6,400-6,450 levels with stop loss below Rs 4,600 levels.
Zydus Wellness | Buy | Target Price: Rs 2,149 | Upside Potential: 20%
Zydus Wellness is engaged in the development, production, marketing and distribution of health and wellness products. It has 7 leading brands in its portfolio, namely Complan, Sugar Free, Glucon-D, Everyuth, Nycil, I m lite and Nutrilite. Headquartered in Ahmedabad, it has 4 manufacturing facilities across 3 locations- Aligarh, Ahmedabad and Sikkim. It has also 8 co-packing facilities in India, Oman and Newzealand. Zydus is doing well and most of the company’s brands are the market leaders in the respective categories/segments and continued to perform well. The management is targeting 8-10 per cent of its total revenue from international business in the next 4-5 years. It continues to drive innovation, category expansion, and market leadership, reinforcing its strong growth momentum. Thus, it is expected that the stock may see a price target of Rs 2,149 in 8 to 10 months.
Cholamandalam Investment and Finance Company | Buy | Target Price: Rs 1575-1580 | Stop Loss: Rs 1,260
Chola Finance has been consolidating in a broader range of Rs 490 to Rs 590 since the last few months with prices seen hovering below its 200 days exponential moving average on daily charts. Last week a fresh breakout was observed on the charts as stock witnessed a fresh bullish momentum above its 200 days exponential moving average on weekly charts after forming a triple bottom pattern. The breakout has been seen after a series of prolonged consolidation of more than three months. Therefore, one can accumulate the stock in a range of Rs 1,380-1,360 for the upside target of Rs 1575-1580 levels with stop loss below Rs 1,260 levels.
Lemon Tree | Buy | Target Price: Rs 178 | Upside Potential: 29%
Lemon Tree Hotels is a leading hotel chain, operating a diverse portfolio of hotels across various segments, including upscale, upper-midscale, midscale, and economy. With a strong focus on delivering high-quality service and value, it offers seven distinct brands to cater to diverse guest needs. The company has a significant presence in major metro cities and tier I, II, and III cities across India. LTHL has also expanded its international footprint with hotels in Dubai, Bhutan, and Nepal. India's growing demand for branded rooms, coupled with rising discretionary consumption, is expected to outpace supply growth. Lemon Tree's investment in hotel renovations will enable the company to capitalize on this trend, commanding premium pricing and solidifying its position as a preferred mid-market brand. Thus, it is expected that the stock may see a price target of Rs 178 in 8 to 10 months time frame.