Tata Steel, Ambuja Cements among top stock picks from SMC Global for strong returns

As Indian stock markets are hovering around new all-time highs, Dalal Street investors are left with limited options to make money. Domestic brokerage firm SMC Global Securities has shared four stocks of which two are based on technical parameters and two on strong fundamentals.
 

These stocks include names like CESC, Tata Steel Ltd, Ambuja Cement and Redington Ltd. These stocks may deliver up to double digit gains in the coming months. Here's what the brokerage firm has to say about these stocks:
 

Redington | Buy | Target Price: Rs 320 | Upside Potential: 16%

Redington is an emerging markets multinational technology solutions provider and distributor, operating across over 40 markets with more than 450 brand associations and 75,000 channel partners. It focuses on bridging the gap between technological innovation and adoption, offering end-to-end distribution for IT/ITeS, telecom, lifestyle, solar products, and services including cloud, cybersecurity, managed services, logistics and professional services. Redington’s outlook remains positive, underpinned by strong momentum in its SSG business, where management is targeting 30-50% growth over the next 6-12 quarters. The mobility segment continues to see robust demand, particularly in premium categories, while the PC business is expected to witness a pickup in H2 driven by rising AI PC penetration—currently around 22% in India’s commercial segment—and emerging refresh cycles. Geographic expansion across India, the UAE, and KSA is expected to support double-digit growth, aided by sustained investments in AI, cloud modernization, cybersecurity, and data center capabilities. Thus, it is expected that the stock may see a price target of Rs 320 in 8 to 10 months.
 

CESC | Buy | Target Price: Rs 190-192 | Stop Loss: 164

CESC Ltd has been trading within a downward-sloping channel for a considerable period, indicating a phase of healthy consolidation rather than a reversal from higher levels. The recent pullbacks appear controlled, with prices consistently holding above the key moving average, underscoring a strong underlying support base. Momentum indicators remain constructive, as the RSI shows signs of stabilisation while the MACD hints at early improvement. Notably, a channel breakout above the channel resistance zone of Rs 173-175, observed last week, could act as a trigger for renewed upside momentum and a potential resumption of the broader upward trend. Therefore, one can accumulate a stock in range of 174-175 levels for the expected upside of Rs 190-192 levels with stop loss below Rs 164 levels.
 

Tata Steel | Buy | Target Price: Rs 213 | Upside Potential: 17%

Tata Steel signed an intent with the Government of the Netherlands and the province of North-Holland on an integrated health measures & decarbonisation project. As part of growing the India downstream portfolio, It has executed a share purchase agreement with BlueScope Steel to acquire the balance 50 per cent stake in Tata BlueScope Steel. The sale is subject to regulatory approvals. It remains well positioned for future growth with its diversified global footprint, strong India expansion focus and disciplined capital allocation. Strategic actions such as full ownership of Tata BlueScope Steel, divestment of non-core ferro alloy assets and progress on decarbonisation in the Netherlands enhance long-term competitiveness. Improving Ebitda margins, sustained cost transformation benefits and rising India volumes support earnings resilience. NINL’s profitability strengthens the long products portfolio, while Netherlands recovery offsets near-term UK pressures. Healthy operating cash flows, calibrated capex and ongoing debt reduction improve balance sheet strength, enabling Tata Steel to fund growth, manage decarbonisation investments and navigate cyclical volatility effectively. Thus, it is expected that the stock may see a price target of Rs 213 in 8 to 10 months.

Ambuja Cements | Buy | Target Price: Rs 605-608 | Stop Loss: 535

Ambuja Cement Ltd appears to be quietly shifting gears after months of consolidation. The stock has been moving within a broad descending trend line, but recent price action shows repeated support near the lower levels, forming higher lows. This base-building behavior suggests selling pressure is gradually easing. The latest move above the neckline of the inverted head & shoulder pattern on short-term charts as well indicates improving sentiment, supported by a mild uptick in RSI and a stabilizing MACD. If the stock sustains above this breakout area, it could attempt a trend reversal toward higher levels. Therefore, one can accumulate a stock in range of Rs 562-565 levels with the expected upside of Rs 605-608 levels with stop-loss below Rs 535 levels.