Bharat Electronics, Auro Pharma, UBL & Taj GVK Hotels: Top 4 stock picks by SMC Global

Amid the rising selling pressure in the broader markets, domestic brokerage firm SMC Global Securities has suggested four stocks- Aurobindo Pharma Ltd, United Breweries Ltd (UBL), Bharat Electronics Ltd (BEL) and Taj GVK Hotels & Resorts Ltd- to bet amid the limited opportunities to make money. The brokerage has picked the former two based on their 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:

 

Aurobindo Pharma | Buy | Target Price: Rs 1,594 | Upside: 20%

Aurobindo Pharma is a global pharma player headquartered in Hyderabad. It develops, manufactures, and commercializes a wide range of generic pharmaceuticals, branded specialty pharmaceuticals and active pharmaceutical ingredients globally in over 150 countries. It has 29 manufacturing and packaging  facilities that are approved by leading regulatory agencies. In Q1FY25, It recorded robust growth and continuously focuses on developing complex molecules, differentiated offerings, broad spectrum products, and newer technologies to improve health outcomes globally. APL continues to expand manufacturing footprint, backward integration to build resilient supply chain, expand geographic presence, diversify product portfolio and be future ready with expansion into biosimilars. Thus, it is expected that the stock will see a price target of Ra 1,594 in 8 to 10 months.

 

Bharat Electronics | Buy | Target Price: Rs 330-335 | Stop Loss: Rs 265

Bharat Electronics has been trading under pressure with formation of lower high pattern since last four months as the prices perceived a series of lower bottom formation on the back of profit booking after marking its 52 week high. Recently, the stock managed to find support at its 200 days exponential moving average and given a sharp bounce thereon. A fresh breakout has been observed on charts above the falling trend line of the declining channel. Therefore, one can accumulate the stock in range of Rs 290-295 for the expected upside of Rs 330-335 levels with stop loss below Rs 265 levels.

 

United Breweries | Buy | Target Price: Rs 2,307 | Upside: 20%

United Breweries, a part of Heineken, is the largest beer manufacturer in India. It produces and markets packaged drinking water and soda, internationally recognized beer, and non-alcoholic beverages. Its diverse product portfolio comprises. Its popular beer, Kingfisher Premium Lager beer, is currently available in 69 countries and leads the way among Indian beers in the international market. It remains committed to growth in the beer category, aiming to capture a wide range of market segments by strengthening its supply chain network and achieving profitable growth with efficient capital deployment. Its emphasis on premium products aligns well with a notable shift in consumer preferences toward international premium mild beers, driven by an increasing demand for unique and high-quality beer experiences. Thus, it is expected that the stock will see a price target of Rs 2,307 in 8 to 10 months.

 

Taj GVK Hotels & Resorts | Buy | Target Price: Rs 395-397 | Stop Loss: Rs 300

Taj GVK has been consolidating in a broader range of Rs 280-330 levels from the last few months on broader charts, with prices seen hovering around its 200 days exponential moving average on daily interval. Last week, a fresh breakout was observed in the stock after a series of prolonged consolidation. Technically, the stock has also given a fresh breakout above the falling trend line of the declining channel accompanied with rising volumes as well. Therefore, one can accumulate the stock in the range of Rs 335-340 levels for the upside target of Rs 395-397 levels with stop loss below Rs 300 levels.