Stocks to buy: Dabur, Wipro, among top four stock picks by SMC Global Securities for this week

Stock market today: Domestic equity benchmarks Sensex and Nifty 50 reached fresh all-time highs in intraday trading but failed to sustain those gains, ending with mild losses amid weak global cues. Shares of HDFC Bank, Larsen & Toubro, Infosys, and TCS supported the key indices most, keeping their losses limited.

Nifty 50 hit its fresh all-time high of 24,236.35 during the session but closed 18 points, or 0.07 per cent, lower at 24,123.85. The 30-share pack Sensex also hit its fresh record high of 79,855.87 but slipped 35 points, or 0.04 per cent, to close at 79,441.45. Profit booking in select heavyweights, such as ICICI Bank, Bharti Airtel, Kotak Mahindra Bank, and SBI, dragged the indices down.

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Lack of fresh triggers back home and weak global cues kept investors' risk appetite low. The BSE Midcap index declined 0.57 per cent; however, the Smallcap index ended with a nominal gain of 0.07 per cent. The frontline indices gained over 6.67 per cent in June, recording their best monthly gains this year.

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.
 

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.Dabur India Ltd: Current Market Price (CMP): ₹603.17; Target Price: ₹697, Upside: 16 per cent

Dabur's fast-moving consumer goods (FMCG) business posted a volume growth of 5.5 per cent in FY24. The India business saw its key brands and products post category-leading growths with market share gains across 95 per cent of the portfolio. The company's international business reported a constant currency (CC) growth of 112 per cent in Q4FY24.

Despite the macroeconomic headwinds, the company remained focused on rolling its consumer-centric innovation and investing heavily in its brands, which increased by 33 per cent, to drive demand and also sustain the growth momentum. Economic slowdown and commodity inflation remain the key upside risks to the FMCG major's growth trajectory.

Dabur India continued to execute its strategic playbook by driving operational excellence, delivering innovative and premium products, and expanding its retail footprint to build the foundation for long-term profitable, sustainable growth. The brokerage expects the stock to see a price target of Rs. 697 in 8 to 10 months on a three years average P/BV of 11.42x and FY25BVPS of Rs.61.03.

2.NHPC Ltd: CMP: ₹99; Target Price: ₹122, Upside: 22 per cent

NHPC aims to be a 23 GW company by 2032 (by adding 16 GW of renewable energy in the next 10 years) and a 50 GW company by 2047 (by adding 43 GW of renewable energy in the next 25 years). It plans to undertake investments of ₹80,000 crore by 2032 and ₹3,60,000 crore by 2047. It has incurred a capex of ₹8,624 crore by FY24 on a consolidated basis compared to a target capex of Rs.10,857 crore. In FY25, it plans a capex of Rs. 11,761 crore, as per SMC.

The company has a strong position in the Indian hydropower segment with a 15 per cent market share. Its capacity addition plan indicates robust growth visibility. Execution risks for under-construction projects and regulatory risks over cost-plus regime remain the key upside risks to the company's growth trajectory. The brokerage expects the stock to see a price target of Rs. 122 in 8 to 10 months on a target P/BVx of 3.00x and FY25 BVPS of Rs. 40.80.
 

3.Wipro Ltd

The stock made a 52-week low of Rs.375.05 on October 26, 2023 and a 52-week high of Rs. 545.90 on February 19, 2024. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at 459. After reaching its 52-week high of 545.90 in February 2024, the stock experienced a series of profit-taking and seen, retracing back towards its 200-day exponential moving average on a weekly interval.

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Despite this, the stock found support at that level and subsequently witnessed a sharp rise, breaking out above the falling trend line of a downward sloping channel. Last week, bullish momentum re-emerged as the stock successfully surpassed its key resistance level of 500. One can buy the stock on in the range of 505-510 levels for the upside target of 565-570 levels with stoploss below 475 levels.
 

4.Indraprastha Gas Ltd (IGL)

IGL made a 52-week low at Rs.375.70 on November 1, 2023 and a 52-week high of Rs. 509.70 on June 28, 2024. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at ₹444. In last three months, the stock has been consolidating in broader range of 430-490 levels with prices holding well above its 200 days exponential moving average on daily charts as well.

Last week a fresh consolidation breakout has been observed on the daily charts with prices moving above its key resistance level of 490. The rise in price along with rise in volumes suggest a fresh long build up into the stock. Therefore, one can buy the stock in range of 495-500 levels for the upside target of 545-550 levels with a stop loss below 465 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.