In the recent stock market activity, there was a surge in buying during the last hour of trading.
The benchmark indices concluded the first day of the trading week on a positive note.
The Sensex ended at 65,617.84, marking a gain of 273.67 points, while the Nifty climbed 83.50 points to close at 19,439.40.
Amidst this market upswing, Vikas Sethi from Sethi Finmart has recommended two stocks in the cash market that have the potential to deliver favorable returns.
Let’s take a closer look at these stock picks.
One of the expert’s stock recommendations is Craftsman Automation, a leading auto component maker.
The short-term target for this stock is set at Rs 4,150. It closed today at Rs 4,013, registering a 1.03% gain.
It is advised to set the stoploss at Rs. 3,970. The stock’s 52-week high and low are Rs 4,139.10 and Rs 2,383.80, respectively, with a notable 65% increase over the past year.
According to the expert, Craftsman Automation, based in Coimbatore, is known for its exceptional quality.
The company manufactures equipment for the automobile, industrial, and engineering sectors and operates 12 plants.
It boasts a strong client base and has recently ventured into the warehouse segment for storage solutions.
With a focus on electric vehicles (EVs) and favorable fundamentals, the company exhibits good growth potential.
Its Return on Capital Employed stands at 19.5%, while the operating profit margin is around 15%.
Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) hold a 25% stake in the company.
Craftsman Automation reported a robust net profit of 80 crores in the March quarter, compared to 51 crores in the same period last year. With a target price of 4,150, it is recommended as a buy.
AIA Engineering Limited
Another stock recommended by the expert is AIA Engineering Limited, a company operating in the capital goods sector.
The short-term target for this stock is set at Rs. 3,400. It closed today at Rs 3,324.45, reflecting a gain of 4.20%.
The suggested stoploss level is Rs. 3,260. The stock’s 52-week high and low are Rs 3,519.95 and Rs 2,247.80, respectively, showing a rise of approximately 43% over the past year.
Experts regard AIA Engineering Limited as an outstanding company in the engineering sector, catering to industries such as cement, power, and mining.
With a successful track record spanning 40 years, it stands as the world’s second-largest high chrome casting producer. Over the past year, this stock has doubled in value.
The company recorded a net profit of 267 crores in the March quarter, compared to 193 crores in the same quarter last year.
AIA Engineering Limited holds promising prospects and is recommended as a buy with a target price of 3,400.