TCS, Birlasoft & KEC International among stock picks from SMC Global

As the Indian equity market is hovering near its record levels, domestic brokerage firm SMC Global has shared four stocks- Tata Consultancy Services Ltd (TCS), Birlasoft Ltd, KEC International Ltd and Vardhman Textiles 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:

 

KEC International | Buy | Target Price: Rs 995 | Upside: 14%

KEC International is a global infra engineering player in the verticals of power transmission and distribution, railways, civil, urban Infra, solar, oil & gas pipelines, and cables. It is currently executing infra projects in over 30 countries and has a footprint in over 110 countries. It is the flagship Company of the RPG Group. The company bagged orders worth Rs 5141 crores from April 2024 so far. It has a strong order book, which indicates growth visibility for the next few quarters. The company is witnessing substantial opportunities of over Rs 25,000 crore for T&D projects in the domestic market, most of which are already floated and would be awarded in next few quarters. Its civil business is also reporting strong growth on the back of robust execution across all segments. The stock may see a price target of Rs 995 in 8 to 10 months.

 

Birlasoft | Buy | Target Price: 820-830 | Stop Loss: Rs 660

Birlasoft formed a double bottom pattern around Rs 565 levels in the recent past and gave a sharp bounce back to regain a fresh bullish momentum above its 200 days exponential moving average on daily charts. Since then stock went into consolidation phase as prices were fluctuating in range of Rs 660-720. At current juncture fresh breakout has been observed into the stock after a series of prolonged consolidation of more than four weeks. The rising volumes along with the positive price action suggests further upside into the stock. Therefore, one can buy the stock in range of Rs 720-730 for the upside target of Rs 820-830 levels with stop loss below Rs 660 levels.

 

Vardhman Textiles | Buy | Target Price: Rs 614 | Upside: 18%

Vardhman Textiles has operations across the yarn, fabric, sewing threads, fibre, special alloys and garment sectors. It has geographical diversification across domestic and export markets, product diversification across value-added yarns and fabrics, multiple plant locations and technical collaborations. It boasts a capacity of  12.37 lakh equivalent spindles and produces approximately 175 million meters of processed fabric annually. The expansion and modernization plan is scheduled to be completed within the next 2 years. Vardhman anticipates achieving better business synergies and gaining a competitive advantage in the market. It is expected that the stock will see a price target of Rs 614 in 8 to 10 months.

 

Tata Consultancy Services | Buy | Target Price: Rs 4,450-4,500 | Stop Loss: Rs 3,900

TCS has been consolidating in a broader range of Rs 3,700-4,000 from the last more than three months with prices holding well above its 200 days exponential moving average on daily charts. Over the period of consolidation stock has formed an Inverted Head & Shoulder pattern. This week we have observed a fresh breakout into the stock above the neckline of the pattern formation. The sudden spike in volume activity along with breakout suggests further upside into the stock. Therefore, one can buy the stock in range of Rs 4100-4150 for the upside target of Rs 4450-4500 levels with stop loss below Rs 3,900 levels.

 

 

 

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