JK Cement, ICICI Lombard, CDSL among 4 stock picks by SMC Global for decent gains

Amid the rising volatility in the Indian stock markets, domestic brokerage firm SMC Global Securities has suggested four stocks- ICICI Lombard General Insurance, Central Depository Services (India), JK Cement and Medplus Health Services - to bet amid the scarce opportunities to make money. The brokerage has picked the former two based on their strong technical charts, while the latter two appear to be robust based on their sound fundamentals. Here's what the brokerage has to say about these counters:

 

Central Depository Services (India) | Buy | Target Price: Rs 1,595-1,610 | Stop Loss: Rs 1,125

CDSL has been under sustained selling pressure for an extended period, causing it to fall below its 200-day exponential moving average (EMA) on the daily charts. However, a potential reversal signal emerged as the stock formed a double-bottom pattern around the Rs 1,050 level. Following this formation, the price rebounded sharply, reclaiming its position above the 200-day EMA. Technically, the stock has now broken out above the 'W' pattern (double-bottom formation), signaling a bullish reversal. A follow-up buying momentum is anticipated post-breakout, suggesting further upside potential. Therefore, one can accumulate a stock in the range of Rs 1,300-1,320 for the expected upside of Rs 1,595-1,610 levels with stop loss below Rs 1,125 levels.

 

JK Cement | Buy | Target Price: Rs 6,422 | Upside: 23%

JK Cement is a producer of diversified and cement-related products, including grey cement, white cement (WhiteMaxX), and allied products like wall putty, gypsum plaster, tile adhesives, grouts and paints. It boasts a grey cement capacity of 24.34 MTPA, white cement and wall putty capacity of 3.05 MTPA, green power capacity of 184.14 MW, and a 32.3 MW waste heat recovery system. It is strategically positioned to benefit from India’s infrastructure and housing boom, with a strong presence in high-growth North and Central markets. Its focus on cost optimization, strategic acquisition, capacity expansion, enhanced market reach and diversification into paints positions it for long-term growth. Thus, it is expected that the stock may see a price target of Rs 6,422 in 8 to 10 months.

 

ICICI Lombard General Insurance Company  | Buy | Target Price: Rs 2,090-2,100 | Stop Loss: Rs 1,700

ICICI Lombard has staged a sharp V-shaped recovery from its recent lows, successfully surging back above its 200-day exponential moving average (EMA) on the daily charts. The rebound has unfolded within a rising channel, with the stock forming a higher-low pattern, indicating strengthening bullish momentum. Technically, the stock has now broken out above an ascending triangle pattern, reinforcing the bullish structure. The recovery has been supported by rising volumes, suggesting increasing buying interest and validating the breakout. Further upside momentum is anticipated as the stock sustains above key resistance levels. Therefore, one can accumulate a stock in the range of Rs 1,850-1,855 for the expected upside of Rs 2,090-2,100 levels with stop loss below Rs 1,700 levels.

 

Medplus Health Services | Buy | Target Price: Rs 933 | Upside: 17%

Medplus Health is in the business of pathological laboratory testing and manufacturing, wholesale trading and contract manufacturing of pharma, fast-moving consumer goods and beauty products and rendering of management services to group companies and holds investments in subsidiary companies. It operates in 13 states and continues to expand its store network while optimizing existing operations. The management anticipates sustainedGMV growth aligned with the pharma market, driven by inflation and market trends, despite a slight branded pharma slowdown due to rising private label sales and seasonality. It aims to maintain 10-11 per cent store-level EBITDA margins while managing new store cannibalization. With plans for 600 annual store additions and enhanced operational efficiency via new warehouses, management is optimistic about achieving robust growth and operational stability. Thus, it is expected that the stock may see a price target of Rs 933 in 8 to 10 months