PFC, SBI Life, JPSL, Quess Corp: 4 stock picks from SMC Global for decent gains

Amid the recovery in the Indian rising volatility in the Indian equity markets, domestic brokerage firm SMC Global Securities has suggested four stocks- Power Finance Corporation Ltd, Jindal Steel & Power Ltd (JSPL), Quess Corp Ltd and SBI Life Insurance Company 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 based on their strong technical charts. Here's what the brokerage has to say about these counters:

Power Finance Corporation | Buy | Target Price: Rs 482 | Upside: 18%

Power Finance Corporation is a significant market player in the power financing sector. As on December 31, 2024, the share of loans to discoms continue to make majority share in the overall loan book with 41 per cent, followed by loans to generation companies with 34 per cent, loans to renewable energy companies with 14 per cent, loans to transmission companies (transcos) with 7 per cent and loans to infrastructure companies and others make 4 per cent each. It is experiencing robust loan growth, driven by significant expansion in its private sector loan portfolio. At the same time, enhancements in asset quality and an improved NIM bode well for its future performance. Its renewable energy portfolio continues to grow steadily, maintaining its position as the largest renewable book in the country. It is expected that the stock may see a price target of Rs 482 in 8 to 10 months.

Quess Corp | Buy | Target Price: Rs 735-740 | Stop Loss: Rs 630

Quess Corp has been trading within a broader range of Rs 565-665 over the past few months, consolidating below its 200-day exponential moving average (EMA) on the daily charts. However, last week, a fresh breakout occurred as renewed bullish momentum emerged, pushing the price above the 200-day EMA following an extended period of consolidation. Technically, the stock has also broken out above a 'W-pattern' formation, signaling potential strength in the ongoing upward move. Therefore, one can accumulate a stock on dips in range of Rs 665-675 for the expected upside of Rs 735-740 levels with stop loss below Rs 630 levels.

Jindal Steel & Power | Buy | Target Price: Rs 1,072 | Upside: 17%

Jindal Steel & Power is advancing its development efforts with the launch of new projects, including a color-coated line and a galvanizing line, each adding 200,000 tonnes of capacity. A quenching & tempering (Q&T) facility is being introduced to enhance the value of the plate portfolio, with a planned capacity increase of 250,000 tonnes. Integrated supply chain projects are being implemented to improve logistics and operational efficiency. JSPL has a strong track record, and according to its management, the demand for steel in India remains robust, supporting the prices of value-added products. The company is concentrating on value-added products to enhance overall realization and margins. It aims to reduce leverage by funding part of its capex through internal accruals and maintaining an optimal net debt-to-EBITDA ratio of below 1.50 times. Thus, it is expected that the stock will see a price target of Rs 1,072 in 8 to 10 months.

SBI Life Insurance Company | Buy | Target Price: Rs 1,695-1,700 | Stop Loss: Rs 1,430

SBI Life has been trading within a relatively wide range of Rs 1,380 to Rs 1,530 over the last three months, showing no significant upward or downward trend. During this period, the price has frequently oscillated around the 200-day exponential moving average (EMA) on daily charts. However, last week marked a notable shift in market dynamics. The stock broke out of this established range, surpassing the upper boundary of Rs 1,530 with increased trading volume. A breakout like this, particularly when accompanied by higher-than average volume, typically signals a significant shift in market sentiment. Therefore, one can accumulate a stock in range of 1530-1545 for the expected upside of Rs 1,695-1,700 levels with stop loss below Rs 1,430 levels.