Sectoral declines in IT, banking/financials, auto, and FMCG stocks further dragged the index down. Overall, caution ahead of key economic events and global uncertainty contributed to the market’s downturn.
Here are the top stock picks for today as recommended by some of India’s top market experts.
Three stocks to buy as recommended by Raja Venkatraman of NeoTrader for Wednesday, 28 May.
KEI (Current market price ₹3,533.60)
- Why it’s recommended: The stock has shown continued focus on improving profitability despite challenges from new entrants. The company is investing in significant expansion projects, which could lead to increased production capacity and growth. Further, the steady acceleration is forming a breakout-retest setup. With bullish signals emerging, a long opportunity can be considered.
- Key metrics: P/E: 48.45, 52-week high: ₹5040.40, Volume: 362.31 K.
- Technical analysis: Support at ₹3250, resistance at ₹4000.
- Risk factors: Market volatility, increasing competition and commodity headwinds.
- Buy at: CMP and dips to ₹3470.
- Target price: ₹3750-3850 in 1 month.
- Stop loss: ₹3430
Also Read: This luggage leader is staging a turnaround. But can it overcome its baggage?
WHEELS (Current market price ₹793.45)
- Why it’s recommended: The stock has shown signs of recovery despite challenging scenario on the revenue front hinting at some management changes that is revenue growth and positive management commentary is generating demand. After testing key support levels, renewed buying interest and a Cup and Handle pattern technical setup, hinting at a long opportunity.
- Key metrics: P/E: 18.31, 52-week high: ₹915, Volume: 93.22K.
- Technical analysis: Support at ₹648, resistance at ₹893.
- Risk factors: Global economic slowdown, supply chain issues, and increasing preference for aluminium wheels.
- Buy at: CMP and dips to ₹755.
- Target price: ₹890-945 in 1 month.
- Stop loss: ₹740.
CONCOR (Current market price ₹768.70)
- Why it’s recommended: CONCOR is a container transportation and handling company, offering services like rail-linked terminals, warehousing, and container freight stations, all contributing to a robust logistics chain. The charts have been moving in a narrow range and finally the thrust above the key resistance zone around 720 has given some support to the prices. With some rerating by Jeffries this can be considered as a good initiative to go long.
- Key metrics: P/E: 36.69, 52-week high: ₹1194, volume: 5.04 M.
- Technical analysis: Support at ₹650, resistance at ₹950.
- Risk factors: Weak demand, lower handling and storage charges, and increased competition.
- Buy at: above 769 and dips to ₹735.
- Target price: ₹820-845 in 1 month.
- Stop loss: ₹722.
Also Read: JK Cement beats peers on a critical parameter, but watch out for party poopers
Two stock recommendations by MarketSmith India:
Buy: Welspun Corp Ltd. (current price: ₹783.5)
● Why it’s recommended: Strategic expansion and diversification, recognition, and market position
● Key metrics: P/E: 24.17, 52-week high: ₹900.00, volume: ₹ 51.69 crore
● Technical analysis: Reclaimed 100-DMA
● Risk factors: Raw material price volatility, intense industry competition
● Buy at: ₹ ₹ 783.5
● Target price: ₹ 890 in three months
● Stop loss: ₹ 745
Buy: Tata Chemicals Ltd (current price: ₹ 900)
● Why it’s recommended: Leadership in soda ash and specialty chemicals, focus on sustainability, and green chemistry
● Key metrics: P/E: 67.23, 52-week high: ₹ 1,247, volume: ₹ 157.19 Ccrore
● Technical analysis: Horizontal trendline breakout
● Risk factors: Commodity price volatility, global demand uncertainty
● Buy at: ₹ 900
● Target price: ₹ 1,010 in three months
● Stop loss: ₹ 849
Also Read: UBS flags India’s high-risk premium despite recent equities upgrade
Best stocks to trade as recommended by Trade Brains Portal
Hindustan Unilever Ltd (Current price: ₹ 2,383)
- Target price: ₹ 2850 in 12-14 months
- Stop-loss: ₹2,145
- Why it’s recommended: It is India’s largest FMCG company with a diverse product portfolio, with 50+ brands reaching 9 out of 10 Indian households. It has a strong distribution network with 35 distribution hubs, 3500+ distributors, and 9+ million outlets selling HUL products across India. The company has diversified revenue segments such as home care, beauty & wellness, food, and personal care.
It has over 28 owned factories and 2 lighthouse factories in India that produce 75 billion units annually. The company has 19 brands with over ₹1,000 crore in annual sales, with 3 brands moving close to the annual ₹1,000 crore sales mark.
The company achieved a revenue from operations of ₹63,121 crore, a growth of 2% YoY, as of FY25. EBITDA as of FY25 stood at ₹15,868 crore, as compared to ₹15,474 crore in FY24, a growth of 2.5% YoY. Profit after tax stood at ₹10,671 crore, a growth of 3.7% YoY.
The company is going through a journey towards the premiumization of its brand portfolio. This premiumization trend leads to an increase in acquisitions of key premium brands. HUL has finalized the acquisition of a 90.5% stake in Minimalist. Minimalist turnover crossed ₹500 crore in FY25 revenue.
The company maintains a healthy margin in all its segments, with Home Care at 19%, Beauty & Wellbeing at 32%, Personal Care at 18%, and Foods at 18%. The company expects a gradual improvement in the coming quarters, led by portfolio transformation and improving macroeconomic conditions. According to the medium-term guidance, the EBITDA margin is to be within a healthy range of 22-23%.
On the macro front, industry is being driven by rural markets, and urban demand is shifting towards e-commerce. Factors like a favorable monsoon forecast, inflation at a 6-year low, and a change in tax slabs may lead to better demand in the coming quarters.
- Risk Factor: The company faces intense competition from both organized and unorganized players in the FMCG sector across segments and products. Due to low barriers to entry, low switching costs, and pricing pressures, the company has been growing at a slow pace since last year. The company also faces commodity risk, as commodities like palm oil saw a jump of 18% in FY25, which could impact the profit margins of the company.
Godrej Consumer Products Ltd (Current price: ₹ 1,272)
- Target price: ₹ 1,495 in 12-14 months
- Stop-loss: ₹ 1,160
- Why it’s recommended: It is a prominent FMCG player in emerging markets, with a diverse portfolio that includes household insecticides, air fresheners, hair colour, and soaps. It has manufacturing plants in Assam, Himachal Pradesh, Jammu and Kashmir, Madhya Pradesh, Meghalaya, Puducherry, Sikkim, and Tamil Nadu.
The company has diversified revenue across geographies and product segments. It stood among the largest players in the household insecticide and hair care segments. The company touches over 1.2 billion consumers in more than 85 countries, with a strong presence in Asia, Africa, and Latin America. The company has some well-known brands in its portfolio, like Godrej Aer, Park Avenue, Goodknight, Cinthol, KamaSutra, HIT, and others.
In FY25, the company’s consolidated volume grew by 4%. Total revenue as of FY25 stood at ₹14,680 crore, growing by 2% YoY, and EBITDA stood at ₹3,319 crore, growing by 3.3% YoY. The company has been successful in increasing its EBITDA margin through efforts like premiumization, better ad spend, and better realizations in international markets.
Indonesia business continues to be stable with 5% volume growth and 9% EBITDA growth due to better distribution scale-up and successful launch of new products like Shampoo Hair Color and HI Electrics, etc.
In addition, the company aims to have a 2 billion customer base by FY27. It is also planning to foray into a new line of business, i.e., pet foods, branded as “Godrej Ninja,” aiming for double-digit growth with an investment of ₹500 crore over a period of 5 years, and commenced production in H2 FY25.
- Risk Factor: As GCPL has a significant presence in Asia, Africa, and Latin America, any geopolitical tensions, currency fluctuations, or supply chain disruptions could have a negative impact on the margins. An increase/fluctuation in the prices of raw materials, especially palm oil, might have an adverse effect on its profitability in the short term.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
MarketSmith India: Trade name: William O’Neil India Pvt. Ltd; Sebi-registered research analyst registration number: INH000015543
Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729.
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.
