Stocks to buy: Adani Wilmar to Devyani International—SMC Global Securities lists four stocks to bet on this week

Stock market today: Domestic equity benchmarks Sensex and Nifty 50 settled flat on Tuesday, 27 August, with shares of select heavyweights such as Reliance Industries, ITC, Hindustan Unilever, HDFC Bank and Titan as the top drags on them. The Nifty 50 closed just seven points up at 25,017.75, while the 30-share BSE Sensex ended 14 points higher at 81,711.76.

The Nifty 50, which has added about 3.6 per cent in nine sessions, its longest daily winning run in 16 months, came within five points of a record high. On the other hand, the mid-and small-cap segments recorded decent gains, with the BSE midcap and smallcap indices rising half a per cent each. 

Also Read: Nifty FMCG hits all-time high for 4th straight session, gains 16.5% in 3 months; what’s fueling the surge?

The domestic benchmarks ended lacklustre even as the US Federal Reserve's expectations of interest rate cuts in September remain a positive trigger for the market. Stretched valuations and geopolitical tensions are the key challenges weighing on market sentiment. Analysts said liquidity surplus has lent resilience to markets and overpowered the selling pressure.

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.

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.Adani Wilmar: Current Market Price (CMP): ₹374.05; Target Price: ₹422, Upside: 12 per cent

For FY25, Adani Wilmar expects to continue its strong growth trends, robust urban demand, and a gradual revival of rural consumption. A perceptible shift towards packaged form in food has also been observed across urban, semi-urban and even rural markets, which will be a strong tailwind for Adani Wilmar in the coming years. 

The ambition is to double Adani Wilmar's volume in packaged foods in the next three years and continue to grow packaged oils in double digits. According to the management, the company has been meticulously expanding its processing capacities and increasing the distribution of its products. 

It also executes regional strategies such as differential pricing, offering regional product varieties and deepening market penetration in local regions. The brokerage expects the stock will see a price target of Rs. 422 in 8 to 10 months on a current P/BV of 5.90x and FY25 BVPS of Rs.71.49.
 

Also Read: Zee Ent stock zooms 11% on signing non-cash settlement agreement with Sony India, NCLT dispute cases withdrawn
 

2.PNC Infratech: CMP: ₹458.35; Target Price: ₹542, Upside: 16 per cent

As of June 2024, the company has already invested Rs. 2,079 crore and the remaining equity of Rs. 1,013 crore is to be invested over the next two to three years, which would be funded through internal accruals. The company has a strong execution track record. A robust order book and order in pipeline indicate sustained growth visibility. 

Recently, it signed a SPA for asset monetization of 12 road assets, having an enterprise value of 9,005.7 crore and an equity value of 2,902 crore, which would strengthen the balance sheet and help drive future growth. The brokerage expects the stock will see a price target of Rs. 542 in 8 to 10 on a one-year P/BVx of 2.45x and FY25 BVPS of Rs. 221.08.
 

3.Devyani International

The stock's 200-day Exponential Moving Average (DEMA) on the daily chart is currently at 171.24. The stock marked its 52-week low of 142.25 in the month of March, but since then, it has been a gradual recovery as the stock recovered steadily to reclaim a move above its 200-day exponential moving average on daily charts. 

However, from the last three months, the stock has been consolidating in the range of 160-185, while on broader charts, a prolonged consolidation has been witnessed in the range of 150-185. Last week, the stock gave a fresh breakout above the consolidation phase with rising volumes. One can buy the stock in the range of 180-185 for the upside target of 225-230 levels, with SL below 160 levels.
 

Also Read: Stock market today: Nifty 50, Sensex end flat; mid, smallcaps outperform
 

4.Radico Khaitan

The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at ₹1,615. The stock has been consolidating in a broader range of 1,650-1,800 on short-term charts while the broader trend remains intact with a bullish move as the stock can be seen rising with the formation of a lower bottom pattern on a daily interval.

Last week a fresh breakout has been observed on charts above the Symmetrical triangle pattern. This upward movement is supported by a substantial increase in trading volume, suggesting the potential for further price gains from hereon. Therefore, one can buy the stock in the range of 1,820-1,840 for the upside target of 2,135-2,150 levels with SL below 1,650 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.