Eicher Motors, Gland Pharma among top 4 stock picks by SMC Global

Amid the rising selling pressure in the Indian stock markets, domestic brokerage firm SMC Global Securities has suggested four stocks- Narayana Hrudayalaya Ltd, Devyani International Ltd, Gland Pharma Ltd and Eicher Motors Ltd- 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:

 

Narayana Hrudayalaya | Buy | Target Price: Rs 1,537 | Upside: 17%

Narayana Hrudayalaya is a healthcare service provider in India, operating a chain of multispecialty, tertiary, and primary healthcare facilities. It has a network of 18 hospitals and 3 heart centers across India along with overseas presence at Cayman Islands, with over 5,790 operational beds and a capacity of over 6,250 beds. It has delivered strong Q2 performance and reported highest-ever revenue on a quarterly basis with sustainable profitability margins, which is on account of improvement in realizations and increased domestic patient footfalls. Despite the slowdown in international patient inflows due to geopolitical tensions in the neighborhood, it has been able to show an overall growth in revenues during the quarter through its enhanced focus on domestic business. The performance improvement is seen across its flagship units, other hospitals, and steady improvements in the performance of its newer hospitals. Thus, it is expected that the stock may see a price target of Rs 1,537 in 8 to 10 months.

 

Gland Pharma | Buy | Target Price: Rs 2,175-2,200 | Stop Loss: Rs 1,710

Gland Pharma recovered sharply and once again reclaimed its 200-days exponential moving average (DEMA) on daily charts, after marking a 52 week low of Rs 1,585.70 in the month of October 2024. Since the last six to seven weeks, the stock has been witnessing a series of consolidation as prices were seen fluctuating in range of Rs 1,700-1,850 levels. Last week, the stock witnessed a fresh breakout above the consolidation phase as progressive price momentum accompanied rising volumes and positive divergences on secondary oscillators. Therefore, one can accumulate a stock in the range of Rs 1,880-1,900 for the expected upside of Rs 2,175-2,200 levels with stop loss below Rs 1,710 levels.

 

Devyani International | Buy | Target Price: Rs 226 | Upside: 18%

Devyani International is the largest franchisee for Yum Brands (KFC & Pizza Hut) in India. It is the sole franchise for Costa Coffee Brand and stores in India. It caters to the South Indian vegetarian food lovers with Vaango, launched over a decade ago. It operates more than 1,900 stores across brands in over 260 cities in India, Thailand, Nigeria and Nepal as on September 30, 2024. Its addition of new brands reflects its commitment to bringing diverse, high-quality contemporary food & beverages brands to our customers, while driving sustainable growth. Besides new stores addition and product innovation for targeted customers would drive future growth. Thus, it is expected that the stock may see a price target of Rs 226 in 8 to 10 months.

 

Eicher Motors | Buy | Target Price: Rs 5,800-5,850 | Stop Loss: Rs 4,800

Eicher Motors has been maintaining its Bullish trend as price has been holding well above its 200 days exponential moving average on daily time frame. The Stock has been witnessing a period of prolonged consolidation as prices were trading in a defined range since the past few months. However, last week a fresh breakout triggered on the technical charts as the stock gave a decisive move above Rs 5,100 mark and also marked its 52 week high with large volumes. Therefore, one can accumulate the stock in the range of 5200-5300 for the upside target of Rs 5,800-5,850 levels with stop loss below Rs 4,800 levels.