Amid the rising volatility in the Indian stock markets, domestic brokerage firm SMC Global Securities has suggested four stocks—Adani Wilmar Ltd, PNC Infratech Ltd, Radico Khaitan Ltd, and Devyani International Ltd—to bet on amid the scarce opportunities to make money. The brokerage has picked the first two based on their sound fundamentals, while the latter two appear solid on technical parameters. Here's what the brokerage has to say about these counters:
Adani Wilmar | Buy | Target Price: Rs 422 | Upside Potential: 12% Adani Group's Adani Wilmar (AWL) is a leading FMCG company that offers soybean oil, sesame oil, sunflower oil, cottonseed oil, groundnut oil, mustard oil, and coconut oil, as well as vegetable ghee. Its revenue and volume in Q1FY25 grew by over 40 percent. According to the management, it has been meticulously expanding its processing capacities and increasing the distribution of its products. It is making steady investments in its key brands and building deeper connections with consumers. It is executing well on its strategy and has been gaining market share across consumer products. It is also implementing regional strategies such as differential pricing, offering regional product varieties, and deepening market penetration in local regions. Thus, the stock is expected to reach a price target of Rs 422 in 8 to 10 months.
Devyani International | Buy | Target Price: Rs 225-230 | Stop Loss: Rs 160 Devyani International marked its 52-week low of Rs 142.25 in March 2024. Since then, a gradual recovery has been witnessed as the stock steadily reclaimed a move above its 200-day exponential moving average on daily charts. However, for the last three months, the stock has been consolidating in the range of Rs 160-185. On broader charts, prolonged consolidation has been observed in the range of Rs 150-185. Last week, the stock managed to give a fresh breakout above the consolidation phase with rising volumes. Therefore, one can buy the stock in the range of Rs 180-185 for an upside target of Rs 225-230, with a stop loss below Rs 160.
PNC Infratech | Buy | Target Price: Rs 542 | Upside Potential: 16% PNC Infratech is a leading infra developer in India with strong capabilities. It has expertise in the execution of projects, including highways, bridges, flyovers, airport runways, industrial areas, railways, and transmission lines. It has executed 88 major infra projects spread across 13 states, of which 64 are road EPC projects; it is currently executing 24 projects. It has an order book of Rs 14,100 crore as of June 30, 2024. PNC Infratech has a strong execution track record, and its robust order book and pipeline indicate sustained growth visibility. Recently, it signed a SPA for the monetization of 12 road assets with an enterprise value of Rs 9,005.7 crore and an equity value of Rs 2,902 crore, which will strengthen the company's balance sheet and drive future growth. Thus, the stock is expected to reach a price target of Rs 542 in 8 to 10 months.
Radico Khaitan | Buy | Target Price: Rs 2,135-2,150 | Stop Loss: Rs 1,650 Radico Khaitan has been consolidating in a broader range of Rs 1,650-1,800 on short-term charts, while the broader trend remains intact with a bullish move as the stock can be seen rising with the formation of a lower bottom pattern on the daily interval. Last week, a fresh breakout was observed on the charts above the symmetrical triangle pattern. This upward movement is supported by a substantial increase in trading volume, suggesting the potential for further price gains from hereon. Therefore, one can buy the stock in the range of Rs 1,820-1,840 for an upside target of Rs 2,135-2,150, with a stop loss below Rs 1,650.