Dabur, PNC Infra, Ashok Leyland & Federal Bank: 4 stocks SMC Global suggests to buy
Dabur, PNC Infra, Ashok Leyland & Federal Bank: 4 stocks SMC Global suggests to buy
Amid rising volatility in Indian equity markets, domestic brokerage firm SMC Global has shared four stocks – Dabur India, PNC Infratech, Ashok Leyland, Federal Bank- to bet on. The brokerage has picked the former two based on its 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.
Dabur India | Buy | Target Price: Rs 634 | Upside: 19%
Dabur India is among the top FMCG companies of the country, whose business posted a 5.5 per cent business growth in the full year. The company has delivered a strong performance in the local and global markets. According to the management of the company, strong execution of its power brand strategy, increased premiumisation and distribution footprints expansion coupled with the benefits of its stringent cost reduction actions enabled the firm to report a steady performance during the fourth quarter and the full year 2023-24. The stock may hit Rs 634 mark in next 8-10 months period.
PNC Infratech | Buy | Target Price: Rs 533 | Upside: 21%
PNC Infratech is an infrastructure developer in India with strong capabilities. The company has a robust order book, which indicates future growth visibility. Recently, it achieved notable progress in rural drinking water projects and signed a master securities purchase agreement (SPA) for asset monetization of 12 road assets that would strengthen the balance sheet of the company and help drive the future growth. Thus, it is expected that the stock will see a price target of Rs 533 in next 8-10 months.
Ashok Leyland | Buy | Target Price: 230-232 | Stop Loss: Rs 175
Ashok Leyland has consolidated within the broader range of Rs 160-190 for the past eight to nine months, consistently maintaining levels above its 200-day exponential moving average on daily charts. Last week, the stock reached a new 52-week high, breaking out above the significant resistance level of Rs 190. This fresh breakout, following a prolonged consolidation phase, indicates renewed bullish momentum. The emergence of follow-up buying suggests further upside potential for the stock. Therefore, one can buy the stock on dips in the range of 195-200 levels for the upside target of Rs 230-232 levels with stop loss below Rs 175 levels.
The Federal Bank | Buy | Target Price: 198-199 | Stop Loss: Rs 150
The Federal Bank had been consolidating within a range of Rs 145-165 levels, with prices consistently staying above its 200-day exponential moving average on daily and weekly charts. Recently, a significant breakout occurred into the stock, as momentum was seen surpassing its key resistance level of Rs 165 after the prolonged consolidation. This breakout signals heightened momentum and a continued bullish trend. The price action is accompanied with rising volumes which suggests further positive moves for the stock .Therefore, one can buy the stock in range of Rs 163-165 for the upside target of Rs 198-199 levels with stop loss below Rs 150 levels.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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