LTIMindTree, Bajaj Finserv, Natco Pharma & Bikaji Foods: These are 4 stock picks from SMC Global

Amid the volatility in the Indian stock markets ahead of the Union Budget 2024, domestic brokerage firm SMC Global has shared four stocks- LTI MindTree Ltd, Bajaj Finserv Ltd, Bikaji Foods International Ltdand Natco Pharma 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:

 

Bikaji Foods International | Buy | Target Price: Rs 830 | Upside Potential: 19%

Bikaji Foods is the third largest ethnic snack maker in India with an international footprint, selling Indian snacks and sweets, and is among the fastest growing companies in the Indian organised snacks market. The company has plans to expand geographically and is also eyeing exports and intends to keep up with double digit volume growth for the next ten years. The company is doing well and according to the management of the company, it has delivered remarkable volume growth. On the bottom-line front, Ebitda margin for the year improved, which is led by reduction in commodity prices, superior mix, operating leverage and effective cost management. It is expected that the stock will see a price target of Rs 830 in next 8 to 10 months.

 

LTIMindTree | Buy | Target Price: Rs 6,550-6,600 | Stop Loss: Rs 5,200

LTIMindTree endured downward pressure for a significant period, consistently trading below its 200-day exponential moving average (DEMA) on the daily timeframe. Recently, however, there had been a notable resurgence as the stock regained momentum, surpassing both its 200 DEMA and a crucial resistance level of Rs 5,100. Currently, there is a clear breakout above a symmetrical triangle pattern, supported by continued buying activity. Therefore, one can buy the stock in a range of Rs 5,750-5,760 for the upside target of Rs 6,550-6,600 levels with stop loss below Rs 5,200 levels.

 

Natco Pharma | Buy | Target Price: Rs 1,551 | Upside Potential: 27%

Natco Pharma's business comprises research and development, manufacturing and selling of bulk drugs and finished dosage formulations of FDFs and APIs. APIs business is strategic and serves captive requirements and third party sales. It caters to both domestic and international markets including regulated markets like the United States of America and Europe. It has effectively established a local presence through its partners, ensuring sustained business growth. The management of the company plans to focus more on markets like Canada and Brazil, which offer robust growth opportunities. The management is confident for its business growth, order books and the earnings outlook. It is expected that the stock will see a price target of Rs 1551 in 8 to 10 months.

 

Bajaj Finserv | Buy | Target Price: Rs 1,750-1,60 | Stop Loss: Rs 1,540

Bajaj Finserv has been consolidating in broader range of Rs 1,520-1,620 levels from last more than three months with prices seen hovering around its 200 days exponential moving average on daily charts. Over the period of consolidation, the 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 1,620-1,640 levels for the upside target of Rs 1,750-1,760 levels with stop loss below Rs 1,540 levels.

 

 

 

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