Stocks to buy: Muthoot Finance to Uno Minda—SMC Global Securities lists four stocks to bet on amid volatility

Stock market today: Domestic equity benchmarks Sensex and Nifty 50 extended their losses for the second straight day on Tuesday, August 13, due to selling pressure in HDFC Bank, ITC, State Bank of India (SBI), among others, amid fresh foreign capital outflows. The 30-share BSE Sensex tumbled nearly 700 points to sink below the 79,000 level.

Sensex tumbled 692.89 points or 0.87 per cent to settle at 78,956.03. During the day, it tanked 759.54 points or 0.95 per cent to 78,889.38. The NSE Nifty slumped 208 points or 0.85 per cent to 24,139. Broader markets also declined with the Nifty Midcap index down 0.8 per cent and Nifty Smallcap index down 1.5 per cent.

Also Read: Markets at close: Sensex ends below 79,000-mark, Nifty down 0.85% dragged by banks, metals; HDFC Bank top loser

Investors became poorer by ₹4.52 lakh crore, and the market capitalisation of BSE-listed firms declined by ₹4,52,565.44 crore to ₹4,45,30,265.42 crore ($5.30 trillion). HDFC Bank also dragged financials and banks, which shed 1.9 per cent and 1.5 per cent, respectively. Deep commodity losses and concerns over stretched valuation contributed to the market decline.

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 following stocks based on technical and fundamental parameters. According to the brokerage, the stocks have robust fundamentals and are well-placed to yield good returns for investors in the next one year.

Also Read: Solve Plastic Products IPO: SME IPO subscribed over two times on day 1, retail investors bid highest; Check GMP

Weekly Stock Picks by SMC Global Securities

Let's take a look at the top four technical and fundamental stocks for this week by brokerage SMC Global Securities:

1.Uno Minda: Current Market Price (CMP): ₹1,047.60; Target Price: ₹1,182, Upside: 18 per cent

Uno Minda has reported its highest-ever quarterly revenue, driven by robust growth across its product lines. According to the brokerage, its strategic focus on incorporating emerging technologies and solutions into its portfolio has driven this exceptional performance.

‘’The company has achieved outstanding operational and financial performance compared to the previous quarter, with recovery in petrochemicals, new energy and retail segment, financial services and sustained growth in the digital services business. Moreover, it continues to deliver multiple growths across businesses, and ongoing investments and acquisitions will continue to drive the next leg of growth,'' said SMC Global.

Retail, telecom and new energy are poised to become the upcoming growth drivers over the next two to three years, given the growth initiatives in each business focusing on the India opportunity. The brokerage expects the stock to see a price target of Rs. 1,182 in 8 to 10 months on current P/Bv of 11.66x and FY25 BVPS of Rs.101.35.
 

2.Amara Raja Energy & Mobility: CMP: ₹1,565.70; Target Price: ₹1,931, Upside: 28 per cent

In Q1FY25, the company has seen good traction from its international operations. This was spearheaded by the offtake of its indigenously designed AGM batteries. ‘’It is betting big on growing this space in the coming months. It would continue to build its product range, cater to newer segments, and strengthen its global presence,'' said SMC Global.

The company enjoys strong recognition in lead-acid batteries in India. It forayed into the new energy business in 2022 with a capex plan of Rs. 95 billion to set up a giga corridor in Telangana. Its association with Gotion-InoBat-batteries and Jiangsu Highstar indicates sustainable business growth. The brokerage expects the stock to see a price target of Rs. 1,931 in 8 to 10 months on a target P/BV of 4.60x and FY25 BVPS of Rs.419.75.
 

Also Read: FPIs snap 2-month buying to turn net sellers in August: ₹13,431 crore offloaded in Indian equities, debt inflow stable
 

3.Muthoot Finance

The 200-day Exponential Moving Average (DEMA) of the stock on the daily chart is currently at 1,576. The stock has maintained its bullish run for the last six months as prices have gradually moved up from 1,400 levels to 1,900 levels over the defined time frame. 

The stock can be seen rising with the formation of higher low and higher high patterns on daily and weekly intervals, with prices sustaining above its 200-day exponential moving average as well.

Last week once again a fresh bullish momentum seen rising above the key resistance level of 1,850 along with positive divergences seen on secondary oscillators. Therefore, one can buy the stock in the range of 1,860-1,880 for the upside target of 2045-2050 levels with SL below 1,700 levels.

4.Chambal Fertilizers & Chemicals

The daily chart shows the stock's 200-day Exponential Moving Average (DEMA) at ₹404. After marking its 52-week high of 574.35 in June 2024, the stock witnessed a pullback move and retraced toward 480 levels, forming a lower high pattern on daily intervals. 

Last week, once again, renewed momentum was seen picking up as the stock gave a fresh breakout above the falling trend line of the downward-sloping channel. Therefore, one can buy the stock in the range of 520-515 for the upside target of 600- 610 levels with SL below 470 levels.

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.