Two stock recommendations by MarketSmith India for 16 May
Buy: Shilpa Medicare Ltd (current price: ₹ 714.9)
● Why it’s recommended: Strategic focus on oncology and biologics, strong financial performance
● Key metrics: P/E: 76.92, 52-week high: ₹ 959.50, volume: ₹ 26.79 crore
● Technical analysis: Holding its 200 DMA for the past three days
● Risk factors: Regulatory compliance risks, debt, and liquidity risks
● Buy at: ₹ 714.9
● Target price: ₹ 825 in three months
● Stop loss: ₹ 660
Read this | Kotak AMC targets extra ₹800 cr for new credit fund after initial ₹1,200 cr raise
Buy: Maruti Suzuki India Ltd (current price: ₹ 12,952)
● Why it’s recommended: Market leadership, brand equity, strong rural & entry-level demand
● Key metrics: P/E: 27.94, 52-week high: ₹ 13,860, volume: ₹ 719.71 crore
● Technical analysis: Bullish flag pattern breakout
● Risk factors: Delayed EV strategy, margin pressure from input costs
● Buy at: ₹ 12,952
● Target price: ₹ 14,200 in three months
● Stop loss: ₹ 12,350
Read this | FPI reforms open doors, but will foreign capital follow?
Two stocks to trade, recommended by NeoTrader’s Raja Venkatraman
Timken Company (current price ₹2,961.30)
- Buy: At CMP and on dips to ₹2,900, stop ₹2,870, target ₹3,090-3,150
- Why it’s recommended: The stock saw a sharp decline over the past few months and finally bottomed out in mid-April. The last few attempts could not generate enough momentum until May, when the stock moved above key resistance zones around ₹2,800, which augured well.
- Key metrics:
- P/E: 54.72
- 52-week high: ₹4,817
- Volume: 91.57k
- Technical analysis: Support at ₹2,500, resistance at ₹3,164
- Risk factors: Rising debt levels, economic downturn and fluctuation in raw materials
- Buy: At CMP and on dips to ₹2,900
- Target price: ₹3,090-3,150 in one month
- Stop loss: ₹2,870
Also read: Bharti Airtel eyes growth through price hikes for high-end users
Avalon Technologies Ltd (current price ₹866.75)
- Buy: Above ₹870 and on dips to ₹840, stop ₹818, target ₹950-975
- Why it’s recommended: Avalon operates in the electronics manufacturing services (EMS) space and is expected to benefit from the ongoing tariff war. There is also some genuine buying at higher levels.The company is seen to be well placed, with manufacturing units across the globe.
- Key metrics:
- P/E: 89.51
- 52-week high: ₹1,074
- Volume: 389.1k
- Technical analysis: Support at ₹777, resistance at ₹932
- Risk factors: Intense competition in API space, slow debt reduction
- Buy: Above ₹870 and on dips to ₹840
- Target price: ₹950-975 in one month.
- Stop loss: ₹818
Also read: Hyundai Motor India profit may take a hit in Q4 as sales remain in slow lane
MarketSmith India: Trade name: William O’Neil India Pvt. Ltd; Sebi-registered research analyst registration number: INH000015543
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
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.
