Hidden gems: Raja Venkatraman recommends three stocks to buy today—26 March

• ABINFRABUILD: Buy above: ₹104 | Stop: ₹101 | Target: ₹109-111

• VADILALIND: Buy above: ₹5,050 | Stop: ₹4,925 | Target: ₹5,550-5,700

• PANACEABIO: Buy above: ₹431 | Stop: ₹405 | Target: ₹475-490

Investors should consider these factors to reap meaningful returns in the next few weeks:

1. Analyze fundamentals: Look for companies with strong financial metrics, such as consistent revenue growth, high profit margins, low debt-to-equity ratios, and a healthy return on equity (ROE). These indicators reflect a company’s financial health and operational efficiency.
2. Explore emerging sectors: Focus on industries with high growth potential, such as renewable energy, biotechnology, or artificial intelligence. Companies in these sectors often have untapped opportunities.
3. Study management and innovation: Assess a company’s leadership, business model, and innovation capabilities. Strong management and unique products or services often drive long-term success.

Three stocks to buy on 26 March

ABINFRABUILD: Buy above: ₹104 | Stop: ₹101 | Target: ₹109-111

AB Infrabuild operates in the infrastructure and construction sector, which has seen robust growth due to government initiatives and increased spending on urban development projects. The company’s stock has delivered impressive returns, with a 113% gain over the past year, outperforming its sector peers. In the December quarter, AB Infrabuild reported revenue of about ₹75.41 crore, a significant increase from previous quarters. Profit after tax stood at ₹5.27 lakh, reflecting strong operational efficiency and cost management. The company’s consistent performance and strategic execution make it a key player in the infrastructure sector.

After nearly doubling in prices since the mid-2024 the AB Infrabuild stock underwent some profit booking but the price was not damaged, indicating that the bullish momentum is intact. The last few weeks has seen a strong display of volumes that can fuel a strong rebound from lower levels, which combined with genuine buying in this counter could fuel some upside. Overall , there has been some steady buying at lower levels as a hammer bottom was formed in January-end, highlighting a bottoming formation. The RSI is seen rising ever since, and is now inching higher. The prices show an intention to step up. This can be a good opportunity to go long at current levels.

VADILALIND: Buy above: ₹5,050 | Stop: ₹4,925 | Target: ₹5,550-5,700

Vadilal Industries, a leader in the packaged foods sector, has capitalized on growing consumer demand for frozen desserts and processed foods. The FMCG sector has shown resilience, with Vadilal’s stock reaching a 52-week high of ₹5,143. Over the past year, the stock has delivered strong returns, supported by robust financials. In Q3 FY25, Vadilal reported a revenue of ₹12.15 crore, maintaining high net profit margins. The company’s strategic market positioning and innovative product offerings continue to drive its growth.

This counter witnessed a steady decline for a large part of 2024 due to steady profit-booking. After building a base for the past few months, the prices are seen reviving. A positive move above the key value resistance zone of around 4,500 as seen on the charts highlights a potential upward move. As the prices show steady resolve on the way up, investors can consider going long. The long body candle in the last few trading sessions highlights continued positive sentiment.

PANACEABIO: Buy above: ₹431 | Stop: ₹405 | Target: ₹475-490

Panacea Biotec operates in the biotechnology and pharmaceuticals sector, benefiting from increased demand for vaccines and healthcare solutions. The stock has delivered a remarkable 172% return over the past year. In Q3 FY25, the company reported revenue of ₹163.49 crore—an 8.63% year-on-year growth. Net profit reached ₹4.52 crore, signalling a turnaround from previous losses. Panacea’s focus on R&D and vaccine development positions it as a promising player in the healthcare sector.

A strong recovery is seen in select pharma stocks. Panacea shares are in demand after the retest of an important support zone at around 290-300. The rebound from these levels has been promising and the rise seen in the last session has given a strong breakout. The gradual resumption of upward momentum highlights more room at the top. The attempt to move beyond the consolidation zone highlights a strong case of bullishness. RSI is seen rising and pushing the prices above recent consolidation. With a long body candle firmly in place we can look to initiate longs.

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.