DMart, TCPL, Divis Labs, Deepak Fertilizers: 4 stock picks from SMC Global for decent gains

Amid the volatility in the Indian stock markets, domestic brokerage firm SMC Global Securities has suggested four stocks- Deepak Fertilisers and Petrochemicals, Divis Laboratories, Avenue Supermarts (DMart) and Tata Consumer Products (TCPL) - to bet amid the scarce opportunities to make money. The brokerage has picked the former two based on their sound fundamentals, while the latter two appear to be strong based on their strong technical charts. Here's what the brokerage has to say about these counters:

 

Avenue Supermarts | Buy | Target Price: Rs 4,580-4,600 | Stop Loss: Rs 3,820

DMart has formed a double bottom pattern on the weekly chart, indicating a potential trend reversal. A positive divergence has emerged between the stock price and the Relative Strength Index (RSI) oscillator, suggesting strengthening momentum despite recent price lows. Moreover, trading volume has seen a notable surge compared to the previous trading periods, indicating increased investor interest. Therefore, one can accumulate a stock on dips in range of Rs 4,080-4,100 for the expected upside of Rs 4,580-4,600 levels with stop loss below Rs 3,820 levels

 

Divis Laboratories | Buy | Target Price: Rs 7,008 | Upside: 22%

Divis Labs is a pharma powerhouse known for its leadership in active pharmaceutical ingredients (APIs), custom synthesis, and nutraceuticals. It serves over 100 countries and operates a robust, backward-integrated business model. It has reported strong growth, supported by a debt-free balance sheet, strategic expansions, and a leadership position in APIs and CRAMS, enhancing its long-term attractiveness. Its established customer relationships, technological expertise, and a robust project pipeline position it well for ongoing success in custom synthesis. Despite industry price pressures, the company maintains stability in generics, with growth anticipated from patent expirations and new product introductions. The ramp-up of the Kakinada facility, alongside operational efficiencies, is expected to drive margin expansion and operational leverage. Thus, itis expected that the stock may see a price target of Rs 7,008 in 8 to 10 months.

 

Tata Consumer Products | Buy | Target Price: Rs 4,580-4,600 | Stop Loss: Rs 3,820

On weekly chart, Tata Consumer made double bottom formation, indicating a potential trend reversal. The rising RSI suggests that bullish momentum is building, indicating the possibility of an upward move. If the stock breaks above the resistance level formed by the double bottom neckline with strong volume, it could lead to further price appreciation. Therefore, one can accumulate a breakout in the range of Rs 1,020-1,035 for the expected upside of Rs 1,140-1,155 levels with stop loss below Rs 950 levels.

 

Deepak Fertilisers and Petrochemicals | Buy | Target Price: Rs 1,337 | Upside: 20%

Deepak Fertilisers is a manufacturer of industrial chemicals and fertilizers. With a strong presence in technical Ammonium Nitrate (mining chemicals), industrial chemicals and crop nutrition (fertilisers), it supports critical sectors of the economy such as Infra, mining, chemicals, pharmaceutical and agriculture. It has plants located in four states, namely Maharashtra (Taloja), Gujarat (Daher), Andhra Pradesh (Srikakulam) and Haryana (Panipat). It delivered a robust Q3 FY2025, showcasing significant revenue growth and improved margins. Its ongoing corporate restructuring is poised to enhance operational efficiency in the future. The addition of new capacity, a strategic shift from commodity products to high-value specialty offerings, and the adoption of smart factory initiatives through IT-enabled sales and operations planning (S&OP) systems bode well for DFPCL’s prospects. The stock may see a price target of Rs 1,337 in 8 to 10 months.