SBI, Hindalco, Sandhar, Bajaj Consumer: 2 technical, 2 fundamental picks by SMC Global

Brokerage firm SMC Global has identified four stocks—two based on strong fundamentals and two on compelling technical setups that it believes can deliver solid returns for investors. 

The fundamental picks, with a time horizon of 8 to 10 months, are banking behemoth State Bank of India (SBI) and metals major Hindalco Industries. The technical selections, with a 1-2 month view, include auto components maker Sandhar Technologies and FMCG firm Bajaj Consumer Care.

Fundamental Picks

State Bank of India (SBI)

SMC has a "Buy" rating on SBI, setting a target price of Rs 1036, which suggests a potential upside of 18 per cent from its current market price of Rs 880.75.

The brokerage's optimism is anchored in the bank's robust business expansion, with total business growing 12 per cent year-on-year to Rs 97,27,770 crore by the end of June 2025. This was driven by a 12 per cent surge in advances, particularly in retail (up 13 per cent), agriculture (up 13 per cent), and MSME loans (up 19 per cent).

SMC's note highlights SBI's improving operational efficiency, with its cost-to-income ratio improving to 47.7 per cent in Q1FY26 from 49.4 per cent a year earlier. The bank's asset quality has also remained stable, with the gross NPA ratio standing at 1.83 per cent as of June 2025, compared to 2.21 per cent in June 2024. The valuation is based on a target price-to-book value (P/BV) of 1.90x on its FY26 estimated book value per share (BVPS) of Rs 545.34.

Hindalco Industries

The brokerage recommends a "Buy" on Hindalco Industries with a target price of Rs 933, indicating a potential upside of 21 per cent from its CMP of Rs 772.35.

Described as a "$28 billion metals powerhouse" and the world's largest aluminum company by revenue, Hindalco's strong growth prospects form the core of the rationale. The company demonstrated sustained momentum in Q1 FY26, with consolidated revenue rising 13 per cent YoY to Rs 64,232 crore and Profit After Tax (PAT) surging 30 per cent to Rs 4,004 crore.

SMC pointed to the company's significant expansion plans, with capital expenditure set to rise from Rs 8,000 crores this fiscal to Rs 15,000 crores next year. The positive outlook is supported by resilient demand in its aluminum and copper segments and the progress of major expansion projects, including the Bay Minette plant in the US, which is expected to commission in the second half of calendar year 2026. The price target is derived from a target P/E of 1.55x on its estimated FY26 BVPS of Rs 601.81.

Technical Picks

Sandhar Technologies

On the technical front, SMC suggests accumulating Sandhar Technologies in the Rs 500-505 range for a target price of Rs 578-580, with a stop-loss below Rs 450. The stock closed at Rs 517.80 on October 10, 2025.

The recommendation is based on a fresh breakout on the daily charts, where the stock has moved past a key resistance level. "Technically, the stock has given a breakout above the ascending triangle pattern with prices holding back above its 200-day moving average," the report stated. This upward move is supported by rising volumes and improving momentum indicators, suggesting renewed buying interest after a consolidation period.

Bajaj Consumer Care

For Bajaj Consumer Care, the brokerage advises accumulating the stock in the Rs 260-265 range. It has a target of Rs 300-302 and a stop-loss below Rs 235. The scrip closed at Rs 264.12 on October 10, 2025.

The stock has staged a "notable breakout on the weekly charts," closing above the crucial Rs 250 resistance level that had capped its movement for several months. According to SMC's analysis, after consolidating in a "rectangular range between 220 and 250," the stock is now showing a directional trend. The brokerage added that a rise in volume during recent weeks further validates this breakout.