UPL, Hindustan Copper, Alembic Pharma & CUB: These are 4 top stock picks by SMC Global

As the headline indices continue to scale new record highs, domestic brokerage firm SMC Global Securities has suggested four stocks- City Union Bank Ltd, Alembic Pharmaceuticals Ltd, UPL Ltd and Hindustan Copper 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 solid on the technical parameters. Here's what the brokerage has to say about these counters:

 

UPL | Buy | Target Price: Rs 670-675 | Stop Loss: Rs 550

UPL has formed a pattern of higher lows on the daily chart and recently broke through a resistance level with increased volume. It is currently trading above its 20-day exponential moving average. This breakout, accompanied by a significant rise in trading volume, indicates potential for further price gains. Thus, consider buying the stock within the Rs 595-600 range, with an upside target of Rs 670-675 and a stop-loss set below Rs 550.

 

Alembic Pharmaceuticals | Buy | Target Price: Rs 1,259 | Upside: 18%

Alembic Pharma is an integrated research and development pharmaceutical company. It manufactures and markets generic pharmaceutical products all over the world. It recorded robust growth in its specialty therapies of gastroenterology, gynecology, antidiabetic, ophthalmology and performed relatively better than the market in acute therapies in Q1FY25. Going forward, news launches across the market and production ramp up in new facilities would drive future business growth. Thus, it is expected that the stock will see a price target of Rs 1,259 in 8 to 10 months' time frame.

 

Hindustan Copper | Buy | Target Price: Rs 375-380 | Stop Loss: Rs 310

Hindustan Copper recently tested its 200-day exponential moving average (EMA) support and successfully rebounded, indicating strong underlying support. Additionally, it broke through a significant trend line resistance on the daily chart. On a longer time frame, it retraced to test previous peaks formed in January and February this year as support. The current chart pattern and technical indicators suggest that the stock is positioned for potential further price increases. Therefore, consider buying the stock within the 330-335 range, with an upside target of Rs 375-380 and a stop-loss set below Rs 310.

 

City Union Bank | Buy | Target Price: Rs 196 | Upside: 15%

CUB is a private lender with 800 branches across 16 states and three Union territories. NIIs for June 2024 quarter rose 4 per cent YoY to Rs 545 crore, while NIMS came in at Rs 3.54 per cent for the quarter. It has maintained the loan growth guidance of double-digit level for FY25. The bank expects to launch new products by September 2024. The bank has also started unsecured retail lending on pilot basis, while it is not aggressive in building the unsecured retail segment. On the asset quality front, the bank expects the recoveries and upgrades to be higher than fresh slippages of loans in FY2025. Thus, it is expected that the stock will see a price target of Rs 196 in 8 to 10 months.