Castrol, Heritage Foods, Bharat Forge & Godrej Consumer: 4 stocks SMC Global suggest to buy

Amid the rising volatility in the Indian equity markets, domestic brokerage firm SMC Global has shares four stocks- Castrol India, Heritage Foods, Bharat Forge and Godrej Consumer Products- to bet on. 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:

Castrol India | Buy | Target Price: 452 | Upside Potential: 22%
Castrol India is among India's leading lubricant companies with strong brands, which are the brands of choice for millions of consumers and customers across the country. The company has strong market share across segments and enjoys brand power. It is strategically positioned to capitalize on trends such as the surge in SUVs and CNG-powered vehicles. Its relentless product innovation and strengthened presence in rural markets auger well for the company. Thus, it is expected that the stock will see a price target of Rs 231 in 8 to 10 months.

Heritage Foods | Buy | Target Price: 452 | Upside Potential: 25%
Heritage Foods the second largest private dairy company in India, stands as a beacon of well-being and joy in the world of nutrition. The company has a strong balance sheet with low debt, improving margins and operating cash flows. The company has emerged as one of the largest private dairies in South India and its influence extends to select North Indian states as well. Going forward, an increase in contribution from value-added products and operating efficiencies would help to improve the operating margins. Thus, it is expected that the stock will see a price target of Rs 452 in 8 to 10 months.

Bharat Forge | Buy | Target Price: 1,560-1,570 | Stop Loss: Rs 1,270
Bharat Forge has been exhibiting a bullish trend on its daily charts, consistently forming higher highs and higher lows. It has been holding levels above its 200-day exponential moving average consistently. Recently, there was a significant breakout as the stock surged in volume, pushing it to achieve its all-time high. This fresh breakout occurring near its all-time high indicates the potential for further upward movement in the stock price. Therefore, it's advised to consider buying the stock on any dips within the range of 1380-1390 levels, targeting an upside potential of Rs 1,560-1,570 levels, with a stop loss below Rs 1,270 levels.

Godrej Consumer Products | Buy | Target Price: 1,470-1,480 | Stop Loss: Rs 1,180
Godrej Consumer Products has formed a pattern of higher highs and higher lows on the daily charts. Back in October, it tested its 200-day exponential moving average (EMA) and has since consistently maintained levels above this average on the daily charts. Last week, the stock broke out of a bullish expanding triangle with a notable increase in volume. This fresh breakout, occurring near its all-time high, suggests further potential upside for the stock. Consequently, one may consider buying the stock on pullbacks within the range of Rs 1,290-1,300 levels, targeting upside levels of Rs 1,470-1,480, with a stop-loss below Rs 1,180 levels.

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