As the festive season approaches, it’s time to revitalize your investment portfolio with StoxBox’s Technofunda Super 7 Picks for October 2024. This handpicked selection highlights seven robust stocks poised for growth, each supported by strong fundamentals and favorable market conditions. Whether you’re a seasoned investor or just starting, these stocks present compelling opportunities for capital appreciation as we step into the final quarter of the year.
1) Coforge
– Coforge is recommended for a buy at CMP ₹7300, targeting ₹7905 with a stop loss at ₹7025. The stock is near its all-time high with reduced volatility and improved strength against the Nifty50. Its order book grew 19% YoY to USD 1,070 million, continuing a trend of strong quarterly intake. Coforge aims for a 50 bps EBITDA expansion in FY25 through cost efficiencies and increased offshoring. With a focus on AI and the Cigniti acquisition, the company is well-positioned for growth in healthcare, retail, and hi-tech sectors.
2) HDFC Bank
– HDFC Bank is recommended as a buy at CMP ₹1615, targeting ₹1725 with a stop loss at ₹1586. The stock has retraced to its 100 DMA, indicating stability and potential for a technical pullback as the RSI approaches oversold levels. The bank has improved productivity, increased deposits per branch, and reduced high-cost borrowings, enhancing liquidity and profitability while maintaining asset quality. New branches are expected to further support growth.
3) LTIMINDTREE
– LTIMindtree is a buy at CMP ₹6375, targeting ₹6925 with a stop loss at ₹6143. The stock indicates a trend reversal with a rounding bottom pattern, reduced volatility, and strong momentum. Its outperformance against the Nifty adds to its attractiveness. LTIM’s robust AI presence supports client growth and multi-year contracts in key sectors like financial services and energy. Strategic partnerships and expansion into the Saudi Arabian market through a joint venture with Aramco Digital further boost its growth potential.
4) Mahindra & Mahindra
– Mahindra & Mahindra (M&M) is a buy at CMP ₹3135, targeting ₹3400 with a stop loss at ₹2995. The stock recently broke out from a rounding bottom pattern, indicating a trend reversal and strong investor interest.M&M plans to invest ₹12,000 crore in EV expansion over three years and ₹14,000 crore for future growth, positioning itself well for sustained profitability in the UV segment.
5) ONE 97 COMMUNICATIONS
– Paytm is recommended to buy at CMP ₹734, targeting ₹811 with a stop loss of ₹701. The stock is in a strong uptrend, showing higher highs and lows, strong buyer demand, and improved relative strength against the Nifty50. With 7.8 million monthly users, Paytm drives stable business through UPI payments and commerce services, enabling cross-selling opportunities. Revenue and profitability are expected to improve from Q2FY25, supported by GMV growth, an expanding merchant base, and cost optimization.
6) Siemens
– Siemens is recommended to buy at CMP ₹7600, targeting ₹8292 with a stop loss at ₹7292. The stock is forming a cup and handle pattern, indicating a potential trend reversal, with strong volumes confirming a bullish breakout. The company is experiencing robust order growth in smart infrastructure, mobility, and energy, supported by increased government spending on infrastructure. Siemens is well-positioned to benefit from expanding markets in energy transmission and renewable energy, along with facility expansions to meet demand.
7) Indian Hotels Company
– Indian Hotels Company Ltd. (IHCL) is a buy at CMP ₹686, targeting ₹749 with a stop loss at ₹662. As part of the Tata group, IHCL operates 310 hotels across various segments and is well-positioned to benefit from the expected 10-11% CAGR in India’s hospitality market during FY2024-27. The company has shown strong performance with occupancy and average room rates exceeding pre-COVID levels. Despite recent profit booking, IHCL’s stock demonstrates relative outperformance against the Nifty50, indicating a favorable outlook.
In this festive season of Dussehra, these Top 7 Stocks from StoxBox are not just options; they represent strategic moves towards a prosperous financial future. With strong fundamentals and promising market dynamics, consider these stocks as valuable additions to your investment strategy.
