Amid increasing volatility in the Indian stock markets, SMC Global Securities, a domestic brokerage firm, has identified four stocks—Adani Wilmar Ltd, PNC Infratech Ltd, Radico Khaitan Ltd, and Devyani International Ltd—as promising investment opportunities. The firm recommends these stocks based on a combination of strong fundamentals and technical analysis. Here’s a detailed look at their recommendations:
Adani Wilmar | Buy | Target Price: ₹422 | Upside Potential: 12%
Adani Wilmar (AWL), part of the Adani Group, is a major FMCG player offering a wide range of edible oils, including soybean, sesame, sunflower, cottonseed, groundnut, mustard, and coconut oil, as well as vegetable ghee. In Q1FY25, the company’s revenue and volume surged by over 40%. The management has been focused on expanding processing capacities and enhancing product distribution. With steady investments in key brands and a strategy to deepen consumer connections, AWL has been gaining market share across its product lines. Regional strategies, including differential pricing and market penetration efforts, further bolster its growth prospects. SMC Global expects the stock to reach a target price of ₹422 within 8 to 10 months.
Devyani International | Buy | Target Price: ₹225-230 | Stop Loss: ₹160
Devyani International, after hitting its 52-week low of ₹142.25 in March 2024, has shown a steady recovery, moving above its 200-day exponential moving average on daily charts. The stock has been consolidating in the ₹160-185 range for the past three months, showing prolonged consolidation in a broader range of ₹150-185. Recently, the stock broke out of this consolidation phase with increased trading volumes, signaling potential upward movement. SMC Global recommends buying the stock in the ₹180-185 range, targeting ₹225-230, with a stop loss set below ₹160.
PNC Infratech | Buy | Target Price: ₹542 | Upside Potential: 16%
PNC Infratech is a prominent infrastructure developer in India, with expertise in executing a variety of projects, including highways, bridges, flyovers, airport runways, and more. The company has completed 88 major infrastructure projects across 13 states, with a robust order book of ₹14,100 crore as of June 30, 2024. PNC Infratech’s strong execution track record and solid pipeline suggest sustained growth. The recent signing of a SPA for monetizing 12 road assets, with an enterprise value of ₹9,005.7 crore and an equity value of ₹2,902 crore, is expected to strengthen its balance sheet and fuel future growth. SMC Global anticipates the stock reaching ₹542 in the next 8 to 10 months.
Radico Khaitan | Buy | Target Price: ₹2,135-2,150 | Stop Loss: ₹1,650
Radico Khaitan has been trading within a broader range of ₹1,650-1,800 on short-term charts, with a bullish trend remaining intact. The stock has formed a lower bottom pattern on the daily interval, signaling potential for further gains. Last week, a fresh breakout above a symmetrical triangle pattern was observed, supported by significant trading volume, indicating further price appreciation. SMC Global suggests buying the stock in the ₹1,820-1,840 range, targeting ₹2,135-2,150, with a stop loss below ₹1,650.
