LTIMindTree, Bajaj Finserv, Natco Pharma & Bikaji Foods: These are 4 stock picks from SMC Global

Amid the volatility in the Indian stock markets ahead of the Union Budget 2024, domestic brokerage firm SMC Global has chalked out four stocks – LTI MindTree Ltd, Bajaj Finserv Ltd, Bikaji Foods International Ltd and Natco Pharma Ltd – to bet on amid the scarce money-making opportunities. The brokerage firm has picked the first two based on their solid technical parameters while the latter two appear to be strong with solid fundamentals. Here’s what the brokerage firm has to say about these counters:

Bikaji Foods International | Buy | Target Price: Rs 830 | Upside Potential: 19%

Bikaji Foods is India’s third largest ethnic snack maker with an international footprint, selling Indian snacks and sweets and is among the fastest growing companies in the Indian organized snacks market. The company has plans to expand geographically and is also eyeing exports and plans to maintain double-digit volume growth over the next decade. The company is doing well and according to the company’s management, it has delivered remarkable volume growth. On the bottom line, the Ebitda margin improved for the year, led by reduction in raw material prices, superior mix, operating leverage and effective cost management. The stock is expected to see a target price of Rs 830 in the next 8-10 months.

LTIMindTree | Buy | Target Price: Rs 6,550-6,600 | Stop Loss: Rs 5,200

LTIMindTree has withstood a significant period of downward pressure and has been consistently trading below its 200-day exponential moving average (DEMA) on the daily time frame. However, there has been a notable rebound recently as the stock regained momentum and surpassed both its 200 DEMA and a crucial resistance level of Rs 5,100. Currently, there is a clear breakout above a symmetrical triangle pattern supported by continued buying activity. Hence, one can buy the stock in a range of Rs 5,750-5,760 for the upside target of Rs 6,550-6,600 levels with stop loss below Rs 5,200 levels.

Natco Pharma | Buy | Target Price: Rs 1,551 | Upside Potential: 27%

Natco Pharma’s business includes research and development, manufacturing and sales of bulk drugs and finished dosage formulations of FDFs and APIs. APIs are strategic and serve captive requirements and third party sales. It focuses on both domestic and international markets including regulated markets such as the United States of America and Europe. It has effectively established a local presence through its partners, which ensures continued business growth. The company’s management plans to focus more on markets such as Canada and Brazil, which offer robust growth opportunities. The management is confident about the business growth, order books and profit outlook. The stock is expected to see a target price of Rs 1551 in 8-10 months.

Bajaj Finserv | Buy | Target Price: Rs 1,750-1,60 | Stop Loss: Rs 1,540

Bajaj Finserv is consolidating in a wider range of Rs 1,520-1,620 levels from the past three months with prices hovering around the 200-day exponential moving average on daily charts. During the consolidation period, the stock has formed an Inverted Head & Shoulders pattern. This week, we have seen a fresh breakout in the stock above the neckline of the pattern formation. The sudden spike in volume activity along with the breakout suggests further upside in the stock. Hence, one can buy the stock in a range of Rs 1,620-1,640 levels for the upside target of Rs 1,750-1,760 levels with stop loss below Rs 1,540 levels.

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