Four stocks with solid fundamentals recommended by SMC Global
As the Indian stock markets bounce back quickly, SMC Global Securities has highlighted four stocks that might be good bets when it comes to making some money: Shriram Finance Ltd, Radico Khaitan Ltd, REC Ltd, and Bhansali Engineering Polymers Ltd (BEPL). The first two stocks were chosen for their solid fundamentals, while the last two show promise based on technical indicators. Here’s what the brokerage thinks about these companies:
**Shriram Finance | Buy | Target Price: Rs 3,577 | Upside: 15%**
Shriram Finance stands out as the biggest retail asset financing non-banking financial company (NBFC) in India. It’s the main entity in the Shriram group, which has a strong role in consumer finance, life and general insurance, housing finance, stock broking, and distribution. The company has a good amount of liquidity to support its future growth. Its main loan products have performed well, driving growth in total assets under management (AUM), expanding its branch network, and investing in digital transformation, which is beginning to pay off. The stock is expected to reach a price of Rs 3,577 in the next 8 to 10 months.
**Bhansali Engineering Polymers | Buy | Target Price: 162-165 | Stop Loss: Rs 128**
For a while, BEPL has been trading lower, experiencing a downtrend from its 52-week high of Rs 177 down to Rs 118. However, the stock found support there and climbed back above its 200-day exponential moving average. Recently, it broke out of an Inverted Head & Shoulder pattern, with a notable increase in average trading volumes. Therefore, it may be wise to buy this stock in the Rs 140-143 range, aiming for an upside target of Rs 162-165, with a stop loss set below Rs 128.
**Radico Khaitan | Buy | Target Price: Rs 2,958 | Upside: 26%**
Radico Khaitan is one of the largest makers of Indian Made Foreign Liquor (IMFL). Its well-known brands include Magic Moments and Verve Vodka, Morpheus brandy, 8PM whisky, Rampur Indian Single Malt, and Jaisalmer Indian Craft Gin, among others. The company serves the Indian Armed Forces and has a capacity of 320 million liters across 43 bottling units. It also exports to over 102 countries. Radico is focusing on innovation to strengthen its premium offerings. They anticipate a volume growth of 15-18% in the P&A segment for FY25, thanks to consistent demand for their leading brands. With a reduction in input costs, steady profits are likely ahead. The stock is expected to reach a target of Rs 2,982 in the next 8 to 10 months.
**REC | Buy | Target Price: 620-625 | Stop Loss: Rs 510**
REC has been on a downtrend in broader charts, with its prices moving within a declining channel and hovering around its 200-day exponential moving average. Recently, the stock broke above the falling trend line of this channel, showing positive movement and higher trading volumes. The positive trends in secondary indicators suggest the stock might see a wave of bullish momentum. It could be a good idea to buy in the Rs 550-560 range, aiming for the target of Rs 620-625 while keeping a stop loss below Rs 510.