The 30-share BSE Sensex ended higher by 141.34 points or 0.18 per cent at 77,478.93 level while the Nifty 50 closed at 23,567.00 level, up 51.00 points or 0.22 per cent. The Nifty has logged record closing highs in five out of six sessions, while the Sensex has ended at all-time highs for five consecutive sessions.
The Nifty Midcap 100 closed 0.95 per cent higher, while the Nifty SmallCap 100 ended up 0.61 per cent, both outperforming the benchmark indices. The fear gauge index, the India VIX closed 2.68 per cent lower today. Sector rotation towards large-cap banking stocks will likely continue due to their valuation comfort, keeping the benchmarks buoyant, according to analysts.
In the current market scenario, domestic brokerage firm SMC Global Securities has released its top four stock picks for this week. The brokerage has selected the quality stocks on technical as well as fundamental parameters. The stocks have robust fundamentals and are well-placed to yield good returns for investors in the next one-year time frame, according to the brokerage.
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Let’s take a look at the top four technical and fundamental stocks for this week by brokerage SMC Global Securities:
The company has robust order pipeline worth Rs. 250,000 crore from various business indicating future growth visibility. Recently, the company has entered into new business, which would drive future growth. With healthy order book, the company is expected to report steady growth in the near term.
In Q4FY24, revenue came in at ₹2485.12 crore with EBITDA margin at 21.74 per cent. EBITDA grew by 6.44 per cent to Rs. 540.29 crore and net profit including exceptional item grew by 127.72 per cent to Rs. 553.09 crore.
GR Infraprojects is targeting order pipeline worth 250,000 crore in various sectors such as highway, road tunnels, metro, power, railways, and others. It is confident of adding decent share to its order book in FY-2025 to take the company back to double-digit growth in FY-2026.
The brokerage expects that the stock will see a price target of Rs. 2,090 in the next 8-10 months time frame on a three year average P/BVx of 2.57x and FY25 BVPS of Rs. 813.18. Economic slowdown and high commodity prices are among the key risks.
The company has played a vital role in various glass segments such as construction, automotive, architectural, and consumer glass, said the brokerage. It has witnessed steady growth over the years, driven by factors such as increased infrastructure development, rising urbanisation, and growing demand for sustainable and energy-efficient materials.
According to the management, the Indian glass industry itself is expected to experience strong growth in the coming years, primarily driven by the construction, automotive and solar sectors. Competition and economic slowdown remain the key risks to the company.
Asahi India Glass is planning to undertake a capex of ₹1,900- ₹2,000 crore over FY25- FY26 for capacity expansion (including capex of ₹300 crore on phase-2 and phase-3 of auto glass plant in Gujarat) to be funded by a mix of debt and internal accrual. The company is investing in third float furnace in Rajasthan (F3), modular and brownfield expansions in its auto glass business in Patan, Chennai and Bawal.
With the government’s focus on infrastructure development and smart city projects and sustainability, there will be increased demand for glass products for architectural applications. The brokerage expects that the stock will see a price target of Rs. 723 in 8-10 months time frame on 1 year’s average P/BVx of 6.28x and FY25 BVPS of Rs.115.20E.
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The stock experienced a steep correction in the recent past, with prices dropping from 850 to 630 levels over the period of months. However, the stock has managed to find support around its 200-day exponential moving average on daily charts and has been consolidating within the broader range of 630-700 levels for the past three to four months.
The stock has once again regained a fresh bullish momentum, breaking out of consolidation above the key resistance level of 700, indicating a potential upward move from hereon. ‘’Therefore, one can buy the stock on in the range of 695-700 levels for the upside target of 775-780 levels with stoploss below 645 levels,” said SMC Global Securities.
The stock recently experienced a steep correction, falling from 3,800 levels towards 3,200 levels on back of profit booking at higher levels. However, the stock has formed a double bottom pattern around the 3,200 mark and regained a sharp upward momentum above its 200- day exponential moving average.
Technically, a fresh breakout has been observed above the “W” pattern, indicating positive price action in upcoming sessions. Alongside rising volumes accompanied with price momentum suggest a potential for further upside movement in the stock. ‘’Therefore, one can buy the stock in the range of 3,500-3,530 levels for the upside target of 3,840-3,850 levels with stoploss below 3,300 levels,” said SMC Global Securities.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
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Published: 20 Jun 2024, 06:51 PM IST
