BEL, Time Technoplast Top 2 Stocks Which Can Fetch Up To 16% Return


by Sandip Das on 1 April 2024,  7 min read


FY24 ended on a positive note with key benchmark indices Nifty50 delivering stellar returns of 31.7 percent. FY25 is likely to be an event packed year with India going into election mode from April 19, 2024, Union Budget for FY25 on July 24, 2024 (by the newly elected government), likely rate cut from US Fed beginning June 24, US elections on November 2024 etc.

Market participants will keenly track auto sales numbers for the month of March 24 followed by RBI policy from April 3 to April 5, 2024. Moreover, earnings season for Q4 FY24 will kick start from second week of April 2024. The street is likely to react to the election manifesto of the ruling and opposition parties.

Trend in global stock markets, the movement of rupee against the dollar and crude oil prices will dictate trend on the bourses in the near term. Investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will be monitored.

On the domestic macro front, the HSBC Manufacturing PMI for March will be declared on April 2, 2024. The HSBC Services PMI for March will be declared on 4 April 2024.

Going forward, one can expect the zone of 22100-22150 likely to act as crucial support for the index. While, on the upside move above the level of 22500 will lead to resume its northward journey towards 22750-22850 level.

Here are the top 2 stocks which can fetch up to 16% return:
Bharat Electronics Limited (BEL) | CMP: Rs 201.85 | Target: Rs 235 | Upside: 16.4%

BEL should benefit from various factors. First, the emphasis on the localisation of electronics manufacturing and import substitution presents a decent opportunity for domestic companies like BEL. This is supported by a robust line-up of defence projects earmarked specifically for Indian entities. Many defence projects which were delayed have started moving towards finalisation.

Further, BEL’s strategic endeavours are anticipated to support higher growth. Strong execution and margin expansion are anticipated in Q4FY24, which will significantly drive overall earnings growth. BEL boasts of a robust order book of Rs 76,217 crore, offering clear revenue visibility.

The stock has been on a secular uptrend since the start of FY23 embarkimg higher high and higher low formation in every time scale. Midcap mayhem past few week ago led to witness significant price correction. The overall trend continues to remain positive as the stock made a higher low formation at Rs 180 and reverted back to its previous bull trend thereon.

Hence present setup provides an ideal opportunity with favorable risk reward scenario. On the downside the elevated support is seen around the level of Rs 192 as it coincides with 50-day EMA followed by the swing high of Jan’24. Hence one canm accumulate the stock at current level for an upside target of Rs 235 as it coincides with the 123.6 percent projected retracement level of the Mar’24 decline.

Time Technoplast | CMP: Rs 250.5 | Target: Rs 290 | Upside: 15.8%

Time Technoplast is engaged in manufacturing technology based polymer and composite products. Polymer products include HM-HDPE plastic Drums/Jerry Cans and Pails, Polyethylene (PE) pipes while composite products include Intermediate Bulk Containers (IBC), Composite Cylinders (LPG & CNG), Energy storage devices.

Consistently, increasing the share of value added products such as Intermediate Bulk Containers (IBCs) and Composite Cylinders which help in improving margins and return ratios.

Also read: HUL, Narayana Hrudayalaya Top 2 Stocks Which Can Fetch Good Returns

The company received approval from the Petroleum and Explosives Safety Organization (PESO) for the manufacturing of high-pressure Type-IV composite cylinder, prototype, for hydrogen. With this order, company is poised to contribute to the advancement of green hydrogen technology and its role in shaping a greener future.

The stock witnessed a multi-year break out last week and entered new price region indicating more upside can be seen in near term. Present breakout is well supported by above average volume confirming of a valid breakout circumstances in near term.

Among the oscillators the daily MACD has generated a buy signal moving above its nine periods average further reinstating that upside rally is likely to continue. In the short term, the stock has produced a breakout of the Flag pattern above the Rs 220 level mark.

Hence going forward conservative price target for the stock can be around the level of Rs 290.

Research Analyst: Krishna Kumar Agarwal
For more insight into the report, kindly click here
Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.

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