
As the headline indices flirt with new milestones on Monday, domestic brokerage firm SMC Global Securities has shared four stocks- Tata Motors Ltd, Life Insurance Corporation of India Ltd, Dr Lal PathLabs Ltd and Sona BLW Precision Forgings Ltd- to bet amid the scarce opportunities to make money. The brokerage has picked the former two based on their solid technical parameters, while the latter two appear to be strong with sound fundamentals. Here's what the brokerage has to say about these counters:
Sona BLW Precision Forgings | Buy | Target Price: Rs 805 | Upside: 17%
Sona Comstar is a leading automotive technology company. It has emerged as a global supplier with nine manufacturing and assembly facilities across India, USA, Serbia, Mexico and China. It is primarily engaged in designing, manufacturing and supplying highly engineered, mission-critical automotive systems and components to automotive OEMs. The company has completely revamped the product and technology roadmap. It is widening its ambit to the broader mobility landscape. The diversified revenue with increasing contribution of Battery Electric Vehicles (BEV) auger well for the company. The strong order book and plans to develop products for a mobility future, indicate sustained business growth. Thus, it is expected that the stock may see a price target of Rs 805 in 8 to 10 months.
Tata Motors | Buy | Target Price: Rs 1,250-1,260 | Stop Loss: Rs 1,000
Tata Motors has been maintaining its bull run from last one year as prices can be seen advancing with formation of higher high patterns on broader charts. However, from the last 4 to 6 months stock has been consolidating in the range of Rs 900-1,050 zone. Last week a fresh breakout was observed on charts as the stock also marked its 52-week high of Rs 1,120.50. The breakout has been observed with marginally higher volumes which suggests long build up into the prices. Therefore, one can buy the stock in range of Rs 1,100-1,120 for the upside target of Rs 1,250-1,260 levels with stop loss below Rs 1,000 levels.
Dr Lal Pathlabs | Buy | Target Price: Rs 3,516 | Upside: 14%
Dr Lal Pathlabs had laboratories, 5,762 patient service centers (PSCs) and 11,619 pick-up points (PUPs) as of March 31, 2024. It is expanding presence in Mumbai, and selects parts of Maharashtra via Suburban, together with development of presence in tier 3 and 4 towns remains a fundamental goal. To strengthen Suburban’s operations, it is focusing on sampling promotion and brand building and expects to see traction in the coming months. Additionally, under the DLPL brand, it is also developing new lab towns to expand its reach. The management's strategic focus areas including geographical expansion, portfolio diversification and digital transformation, are driving significant progress. During FY24, it provided services to 27.6 million patients and tested a total of 78.2 million samples, representing a growth of 8.1 per cent in samples over previous year. It is expanding its reach in core markets by strengthening its presence in Tier 3 and Tier 4 towns. The company is intensifying efforts in key clusters of Western and Southern India. The company continues to leverage its digital infrastructure, including advanced AI and data analytics, to enhance patient experience and deliver operational excellence. It is expected that the stock will see a price target of Rs 3,516 in 8 to 10 months.
Life Insurance Corporation of India | Buy | Target Price: Rs 1,350-1,360 | Stop Loss: Rs 1,040
LIC of India has been consolidating in a broader range of Rs 900-1,150 from last more than four months with prices seen holding well above its 200 days exponential moving average on daily charts. Over the period of consolidation, the stock has formed an ascending triangle pattern on short term charts. Last week we observed a fresh breakout into the stock above the pattern formation with prices seen rising above its key resistance level of Rs 1,150 as well. The sudden spike in volume activity along with breakout suggests further upside into the stock. Therefore, one can buy the stock in the range of Rs 1,160-1,180 for the upside target of Rs 1,350-1,360 levels with stop loss below Rs 1,040 levels.
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