Stock Market News Updates : Bajaj Consumer Care to ICICI Bank—Top Picks by SMC Global Securities for This Week

by Admin

Stock Market News Updates : On Tuesday, August 20, the Indian stock market witnessed a positive session, with both the Sensex and Nifty 50 indices closing with solid gains. The uptrend was fueled by mostly positive global cues and robust buying in key sectors like banking, financial services, and automobiles.

The BSE Sensex, a 30-share index, rebounded sharply, gaining 378.18 points or 0.47%, to close at 80,802.86. At its peak during the session, the Sensex soared by 518.28 points or 0.64%, reaching 80,942.96. Meanwhile, the NSE Nifty 50 surged by 126.20 points or 0.51%, ending the day at 24,698.85. This marked the fourth consecutive day of gains for the index.

Stock Market News Updates

Stock Market News Updates Market Capitalization Surge

The overall market capitalization of companies listed on the BSE rose significantly, increasing to nearly ₹456.7 lakh crore from ₹454.4 lakh crore in the previous session. This impressive gain of over ₹2 lakh crore in a single session made investors considerably richer.

The bullish sentiment in the Indian market was also reflected in global markets. US markets have been on an eight-day rally, recovering more than $3 trillion in market capitalization from the lows experienced in August. Major markets across Asia and Europe also saw gains, buoyed by expectations that US Federal Reserve Chair Jerome Powell would offer clear guidance on the size of a potential rate cut in September during the upcoming Jackson Hole Symposium.

Top Stock Picks by SMC Global Securities

In the current favorable market conditions, domestic brokerage firm SMC Global Securities has identified four stocks that are well-positioned for growth. These stocks have been selected based on both technical and fundamental analysis and are expected to deliver solid returns over the next year.

1. IPCA Laboratories

  • Current Market Price (CMP): ₹1,383.65
  • Target Price: ₹1,670
  • Upside: 25%

IPCA Laboratories is expected to grow its business by approximately 14% to 14.25% for FY25, with further improvement in EBITDA, anticipated to stabilize around 18%. The company is also focusing on cost-reduction strategies and enhancing operational efficiency.

In the Active Pharmaceutical Ingredients (API) and export business, IPCA Laboratories is expected to benefit from stabilizing raw material prices, leading to a projected annual margin improvement of 100-150 basis points over the next three years, potentially reaching 25% within seven years. The company’s strong domestic formulation business, increasing opportunities in the API space, and extensive geographical presence are likely to support earnings. SMC Global Securities projects a price target of ₹1,670 in 8 to 10 months, based on a price-to-book value ratio (P/BV) of 6x and an estimated FY25 BVPS (Book Value Per Share) of ₹278.39.

2. Bajaj Consumer Care

  • Current Market Price (CMP): ₹278.70
  • Target Price: ₹326
  • Upside: 19%

Bajaj Consumer Care has shown strong performance in Q1FY25, particularly with its Bajaj Gulabjal product, which has seen success in general trade following its phased sales launch in the latter half of the previous fiscal year. The brand has also expanded its presence on B2B platforms such as Walmart, Nykaa, and Big Basket, as well as through independent stores across various regions.

The company’s implementation of Project Aarohan is expected to positively impact its general trade business, while organized trade and international business continue to scale up according to plans. Bajaj Consumer Care is also focused on diversifying its product range, including the scaling up of hair oils under the Bajaj brand and planned expansion in the Almond Drop hair and skincare range. SMC Global Securities forecasts a price target of ₹326 in 8 to 10 months, with a target P/BV of 5x and an estimated FY25 BVPS of ₹65.10.

Conclusion

The Indian stock market has shown resilience and strong performance, with both Sensex and Nifty indices posting significant gains. Investors have seen a substantial increase in market capitalization, driven by positive global cues and strong buying in key sectors. SMC Global Securities has identified IPCA Laboratories and Bajaj Consumer Care as two promising stocks with considerable upside potential, backed by robust fundamentals and strategic growth plans. These stocks are well-positioned to deliver solid returns over the next year, making them attractive options for investors.

FAQs

What factors contributed to the rise in Sensex and Nifty on August 20?

The rise in Sensex and Nifty on August 20 was driven by positive global cues, strong buying in banking, financial services, and auto sectors, and a general optimism in the market ahead of the US Federal Reserve’s Jackson Hole Symposium.

Why is IPCA Laboratories a recommended stock by SMC Global Securities?

IPCA Laboratories is recommended due to its expected business growth, cost-reduction strategies, and strong domestic formulation business. The company is also likely to benefit from margin improvements in its API and export business.

What makes Bajaj Consumer Care an attractive investment option?

Bajaj Consumer Care is attractive due to its strong performance in general trade, successful product diversification, and strategic expansion into organized trade and international markets.

What is the expected upside for IPCA Laboratories and Bajaj Consumer Care?

The expected upside for IPCA Laboratories is 25%, with a target price of ₹1,670, while Bajaj Consumer Care has an expected upside of 19%, with a target price of ₹326.

How has market capitalization changed in the BSE on August 20?

The market capitalization of firms listed on the BSE increased by over ₹2 lakh crore, rising to nearly ₹456.7 lakh crore from ₹454.4 lakh crore in the previous session.

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