Amid increasing volatility in Indian stock markets, domestic brokerage firm SMC Global Securities has recommended four stocks for investors: Adani Wilmar Limited, PNC Infratech Limited, Radico Khaitan Limited, and Devyani International Limited.
The brokerage suggests that these stocks present limited opportunities for profit, with the first two selected based on their strong fundamentals, while the latter two show promise according to technical parameters.
Here’s what the brokerage has to say about each stock:
Adani Wilmar | Buy | Target Price: ₹422 | Upside Potential: 12%
Adani Wilmar (AWL), a leading FMCG company from the Adani Group, specializes in various edible oils and vegetable ghee. The company reported over a 40% increase in revenue and volume in Q1FY25. Management is focused on expanding processing capabilities and enhancing product distribution. Continuous investment in key brands and a strategy that includes regional pricing, product variety, and market penetration are expected to drive growth. The stock is anticipated to reach the target price of ₹422 within the next 8 to 10 months.
Devyani International | Buy | Target Price: ₹225-230 | Stop Loss: ₹160
Devyani International, which recorded a 52-week low of ₹142.25 in March 2024, has shown gradual recovery. The stock has consistently regained levels above its 200-day exponential moving average. However, it has been consolidating between ₹160-185 for the past three months. Recently, the stock broke out of this consolidation phase with increasing volume. Investors are advised to buy the stock in the ₹180-185 range, targeting ₹225-230, with a stop loss set at ₹160.
PNC Infratech | Buy | Target Price: ₹542 | Upside Potential: 16%
PNC Infratech is a prominent infrastructure developer in India, specializing in executing projects such as highways, bridges, and airports. The company has successfully executed 88 major infrastructure projects across 13 states, with a current order book valued at ₹14,100 crore. PNC’s strong execution track record and robust pipeline suggest continuous growth potential. Recently, the company signed an SPA for monetizing 12 road assets, which is expected to strengthen its balance sheet and fuel future growth. The stock is projected to reach ₹542 within 8 to 10 months.
Radico Khaitan | Buy | Target Price: ₹2,135-2,150 | Stop Loss: ₹1,650
Radico Khaitan has been consolidating in the ₹1,650-1,800 range, maintaining a bullish trend. The stock recently broke out of a symmetrical triangle pattern, supported by increased trading volume. Investors are encouraged to buy the stock in the ₹1,820-1,840 range, with a target of ₹2,135-2,150 and a stop loss at ₹1,650.SMC Global Securities’ recommendations come at a time when the Indian stock market is experiencing significant fluctuations, suggesting that investors should consider these stocks for potential gains amidst the uncertainty.
