August 2024’s “Techno Funda Super 7 picks” from StoxBox feature seven firms that combine growth potential and sturdiness. Expert market analysis was used to choose these equities, which should provide both short-term and long-term returns.
Let’s take a deeper look at StoxBox’s selections:
BPCL
An important participant in the Indian oil and gas industry, BPCL has seen a 100% increase in stock value since October 2023. BPCL, which is presently in a consolidation phase, is exhibiting indications of a bullish breakout. Buying BPCL at ₹328 with a stop loss of ₹317.26.9% and a target price of ₹357 is advised by StoxBox. Anticipating future obstacles and bolstering long-term growth, BPCL plans to invest ₹16,400 crores in FY25, with an emphasis on refinery expansion, pipeline infrastructure, and more retail locations, according to the brokerage.
HCL Tech
It’s great to see HCL Tech exhibiting strong relative performance in light of rising customer demand. With a stop loss of ₹1,601, StoxBox advises buying HCL Tech around ₹1,650 and aiming for ₹1,785. Based on its strong pipeline, good TCV, stronger deal conversions, and larger non-discretionary portfolio, the brokerage believes HCL Tech will do well in FY25.
“We believe HCL Tech is well-placed from a long-term perspective, given its multiple long-term contracts with the world’s leading brands. Moreover, we believe that an encouraging demand environment will help eliminate uncertainty over discretionary spending,” it added.
PAYTM
“We believe constant improvement in operating leverage will continue to drive its profitability. As we advance, we expect revenue and profitability to improve, driven by growth in operating parameters such as GMV, an expanding merchant base, recovery in loan distribution and continued focus on cost optimisation,” noted the brokerage.
Petronet
Petronet is ideally positioned to benefit from falling LNG costs and increasing gas use. With a short-term stop loss of ₹351, StoxBox advises purchasing Petronet at ₹366 with a target price of ₹401. The stock’s strong price strength in relation to the market and strong buyer demand further highlight its promising future. The brokerage stated that the company’s development prospects are supported by both strategic positioning and excellent market circumstances.
“As a leading player in India’s LNG import sector, Petronet LNG, backed by major public sector companies like ONGC, GAIL, IOCL, and BPCL, holds a 33 percent market share and manages approximately 75 percent of the country’s LNG imports. The company operates two regasification terminals with a combined capacity of 22.5 MMTPA and is effectively expanding its facilities at competitive costs. These factors position Petronet LNG to capitalize on market trends and drive robust future growth,” explained the brokerage.
RVNL
Due to its robust order book of ₹83,200 crore, RVNL, a well-known company in the civil construction industry, is anticipated to recover despite its poor Q1FY25 performance. With a stop loss of ₹538, StoxBox advises purchasing RVNL at ₹565, with a target price of ₹626. After hitting a bottom in May 2024, the value of the RVNL shares more than doubled, with the exception of a brief period of minor profit booking, the report stated. With an 8 percent YoY increase in revenue of ₹17,700 crore as its goal, the company is confident that revenue would rebound in the upcoming quarters.
TCS
TCS is displaying significant momentum with the handle pattern of the RSI indicators, forming a cup and handle pattern. Furthermore, the stock has traits of a genuine market leader, which is encouraging. Without displaying any divergence against the price, the RSI on daily and higher periods is trading far above their medians, indicating strong momentum in the price trend. Using a stop loss of ₹4,241 and a target price of ₹4,705, StoxBox suggests purchasing TCS at ₹4,375.
Zomato
Zomato’s price has been rising steadily since January 2023, when it reached a low point. This indicates that the price trend may be gaining strength. With its ability to withstand down below its shorter-term moving average, the stock presents a low-risk, high-reward prospect. Positive indicators include Zomato’s rising earnings per share (EPS), strong pricing, and robust customer demand. With a stop loss of ₹252 and a target price of ₹285 at ₹262, StoxBox advises purchasing Zomato.
With hopes of sustained growth and higher margins, the company is investing in its B2B company, Hyperpure, and growing its rapid commerce division, Blinkit. Additionally, the company shows great optimism about development opportunities in the rapid commerce and food delivery areas, making significant investments to improve service quality and customer experience. According to the brokerage, they are overcoming obstacles centered on preserving profitability and growing market share.
These seven stocks are great choices for investors who want to take advantage of growth opportunities in important sectors because they provide a strong combination of short-term rewards and long-term possibilities.