Thermax, Jubilant Foods, Krsnaa & Tube Investments: 4 stock picks by SMC Global

Amid the rising selling pressure in the broader markets, domestic brokerage firm SMC Global Securities has suggested four stocks- Krsnaa Diagnostics Ltd, Jubilant Foodworks Ltd, Thermax Ltd and Tube Investment of India Ltd- to bet amid the limited opportunities to make money. The brokerage has picked the former two; the latter two appear to be sound on the fundamentals, while based on their solid technical parameters. Here's what the brokerage has to say about these counters:

Jubilant Foodworks | Buy | Target Price: Rs 756 | Upside: 30%

Jubilant Foodworks holds the exclusive master franchise rights from Domino’s Pizza. It has an extensive network of 1,995 Domino’s stores across 421 cities in India. It also has exclusive rights to develop and operate Popeyes restaurants in India, Bangladesh, Nepal and Bhutan and Dunkin’ restaurants in India. It operates 42 Popeyes restaurants in 15 cities and 31 Dunkin’ restaurants across 10 cities. ‘Hong’s Kitchen’ is the first owned restaurant brand of the company operating in the Chinese cuisine segment which now has 28 restaurants across 6 cities. In Turkey, Azerbaijan, and Georgia, it has 720 stores wherein 89 per cent are franchised stores. It is making progress on driving growth across brands and geographies, and is equally focused on driving margin expansion in India. According to the management, going forward, margins are expected to improve from the lows of Q4-2024. Network expansion and new launches to drive business growth. Thus, it is expected that the stock will see a price target of Rs 756 in 8 to 10 month's time frame.

Thermax | Buy | Target Price: Rs 6,250-6,350 | Stop Loss: Rs 4,800

Thermax has been consolidating in the range of Rs 4,900-5,400 levels with prices holding well above its 200-DEMA on daily and weekly interval from the last one month. Last week, the stock has given a consolidation breakout above its key resistance of Rs 5,400 on short term charts while a fresh breakout above the inverted Head & Shoulder pattern has been observed on broader charts. Therefore, one can buy the stock in range of Rs 5,400-5,450 for the upside target of Rs 6,250-6,350 levels with stop loss below Rs 4,800 levels

Krsnaa Diagnostics | Buy | Target Price: Rs 756 | Upside: 30%

Krsnaa Diagnostics is a differentiated diagnostic service provider in India. It provides a range of technology-enabled diagnostic services such as imaging, pathology/clinical laboratory and teleradiology services to public and private hospitals, medical colleges and community health centres across India. The management aims to expand the company's network of diagnostic centers across India. By leveraging its experience in operating such centers, the company seeks to establish a presence in all states. The company sees significant potential for public-private partnerships (PPPs) in India's rural areas, where diagnostic services are underpenetrated. In these partnerships, government contributions can range from providing land or capital to offering financial incentives. The company with a strong track record and competitive pricing is likely to secure such PPP contracts. Going forward, the growth drivers for the diagnostics industry will be driven by rising income levels, Increasing health awareness and increased government focus on healthcare. Thus, it is expected that the stock will see a price target of Rs 892 in 8 to 10 months.

Tube Investments of India | Buy | Target Price: Rs 5,500-5,550 | Stop Loss: Rs 4,000

Tube Investment has been consolidating in the broader range of Rs 4,000-4,600 from last few months on the broader charts with prices seen hovering just above its 200 DEMA on daily interval. Last week, a fresh breakout was observed into the stock after a series of prolonged consolidation. The positive price action accompanied with volume activity suggests further upside into the stock. Therefore, one can buy the stock in range of 4600-4630 for the upside target of Rs 5,500-5,550 levels with stop loss below Rs 4,000 levels