The local brokerage firm SMC Global has offered four Large Cap stocks—JSW Steel Ltd., Mankind Pharma Ltd., UltraTech Cement Ltd., and ACC Ltd. - for investors to consider betting on as the Indian equity markets soar to new heights. These stocks present rare prospects for profit. The latter two seem to be strong on the technical metrics, but the brokerage chose the first two because of their solid fundamentals. Regarding these counters, the brokerage has the following to say:
UltraTech Cement | Purchase | Stop Loss: Rs 9,500 | Target Price: Rs 11,400–11,500
After hitting its 52-week high of Rs 10,526 in December 2023, UltraTech Cement saw a dip and entered a protracted consolidation period. It was then observed to be oscillating within a wider range of Rs 9,500 to Rs 10,200. A weekly period with a lower high pattern was indicative of this consolidation. On a daily basis, the stock nonetheless maintained a significant lead over its 200-day exponential moving average. A further breakthrough above the long-term channel's declining trend line was seen last week, and the breakout was followed by an increase in volume, indicating that prices may still rise. Thus, with a stop loss below Rs 9,500 levels, one may purchase the stock in the region of Rs 10,200–10,250 levels with an upside objective of Rs 11,400–11,450 levels.
JSW Steel | Purchase | Goal Price: INR 1,059 Gains: 16%
The flagship business of the $23 billion JSW Group is JSW Street. From a single production facility, it has expanded over the past thirty years to become the top integrated steel firm in India, with a capacity of 29.7 MTPA in both India and the United States. By September 2027, it will have grown to a total capacity of 43.5 MTPA during its next phase of expansion in India. The business has a proven track record, and its management claims that the robust steel demand in India would continue to sustain the pricing of value-added goods. A stable realisation rate, increased volumes, decreased input costs, and cost-cutting initiatives would all help FY25 performance.
By the end of FY25, output capacity would reach 37 million tonnes with completion of all active capital projects. Consequently, it is anticipated that in eight to ten months, the company would reach its price goal of Rs 1,059.
ACC | Buy | Stop Loss: Rs 2,350 | Target Price: Rs 3,000–3,050
ACC recently had a strong surge, going from Rs 1,900 to Rs 2,700 in a little amount of time. But it has been trading down during the last three months as a result of profit booking, with prices being trapped in a consolidation period. The larger charts, however, show that prices are still holding above their 200-day exponential moving average on a daily and weekly basis. Technical indicators last week showed new positive momentum as the price of the stock broke above the declining trend line of its downward-sloping channel. Consequently, with a stop loss below Rs 2,350 levels, one may purchase the stock in the region of Rs 2,600–2,610 levels with an upside objective of Rs 3,000–3,050 levels.
Mankind Pharma | Purchase | Aiming for Rs 2,410 Gains: 17%
With a presence throughout India, Mankind Pharma is a player in the consumer healthcare and pharmaceutical industries. It produces a broad range of dosage forms, including as tablets, capsules, syrups, vials, ampoules, blow fill seal, soft and hard gels, eye drops, creams, contraceptives, and other over-the-counter medications, at its 30 production locations throughout India. With the support of over 660 experts, it has 6 specialized R&D centers. Its extensive distribution network, encompassing over 13,000 retailers and over 16,000 field troops, enables quality drugs to be accessed across India, particularly in remote and tiny communities. Mankind Pharma is seeing increasing success, especially in the treatment of chronic illnesses.
The cardiac and anti-diabetic category hit an all-time high in Q4FY2024, and their market share has risen to an astounding 37.4%. With plans to introduce new drugs and expand into the higher-margin consumer healthcare industry, this trend is anticipated to continue, indicating a promising future for humanity. In eight to ten months, a price objective of Rs 2,410 is anticipated for the stock.
Disclaimer: Finance Outlook India provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
