Axis Bank, Oberoi Realty, Dr Lal & Zydus Life: 4 stocks SMC Global suggest to buy

As the Indian equity markets scale new heights, domestic brokerage firm SMC Global has shared four stocks- Axis Bank Ltd, Zydus Lifesciences Ltd, Oberoi Realty Ltd and Dr Lal Path Labs Ltd- to bet amid the scarce opportunities to make money. The brokerage has picked the former two based on its 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:

Axis Bank | Buy | Target Price: 1,376 | Upside Potential: 16%

Axis Bank reported a strong loan growth, supported by retail loans rising 20 per cent YoY, while MSME credit increased 17 per cent as of March 2024. It continued to strengthen its asset quality over the period. The bank is well capitalized with adequate liquidity buffers for future growth. Improving asset quality and strong position in Payments and Digital Banking indicate future growth visibility. According to the management of the bank, its growth, profitability and sustainability agenda is on track and looking at steady growth for all the major business verticals of the bank. It is expected that the stock will see a price target of Rs 1376 in 8-10 months time frame.

Oberoi Realty | Buy | Target Price: 2,170-2,180 | Stop Loss: 1,760

Oberoi Realty has formed a pattern of higher highs and higher lows, indicating an uptrend on the weekly charts. It consistently trades above its 200-day exponential moving average (EMA), supporting this positive trend. Additionally, a bullish pennant pattern breakout is observed, suggesting further upward momentum. These technical indicators collectively suggest potential gains for the stock in the near future. Consequently, one may consider buying the stock within the range of Rs 1,885-1,900 levels, targeting upside levels of Rs 2,170-2,180, with a stop-loss below Rs 1,760 levels.

Zydus Lifesciences | Buy | Target Price: 1,273 | Upside Potential: 20%

Zydus Life has strong capabilities across the spectrum of pharmaceuticals value chains. The company has received approval from the USFDA to market Theophylline Extended-Release Tablets, 300 mg and 450 mg. Theophylline is used to treat asthma and chronic obstructive pulmonary disease (COPD). The drug will be manufactured at the group’s formulation manufacturing facility in Ahmedabad SEZ. The company`s diversified portfolio of products and focused execution efforts, would help achieve sustained healthy growth. New product launches last year and robust pipeline of launches along with market share gain in the Indian formulation business auger well for the company. Thus, it is expected that the stock will see a price target of Rs 1,273 in 8-10 months time frame.

Dr Lal Path Labs | Buy | Target Price: 3,180-3,200 | Stop Loss: 2,600

Dr Lal Path Labs rebounded after breaching its 200-day exponential moving average (EMA) and is now trading above this key indicator on the weekly charts. It has also broken through a trend line resistance and is sustaining above it, indicating strong upward momentum. Additionally, the stock observed a rectangle pattern breakout on the weekly chart, which is a bullish signal. These technical indicators suggest further gains in the upcoming sessions, signaling potential upside momentum. Therefore, it's advisable to consider buying the stock on any dips within the range of Rs 2,785-2,800 levels, targeting an upside potential of Rs 3,180-3,200 levels, with a stop loss below Rs 2,600 levels.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.