Indian stocks are seeing strong moves across sectors, but investors are increasingly looking for rallies supported by improving earnings, strong order books and technical momentum. Somil Mehta, Head of Retail Research at Mirae Asset Sharekhan, has highlighted five stocks that could offer interesting opportunities for both long-term investors and short-term traders.
1. APL Apollo Tubes — Riding the Value-Added Product Wave
APL Apollo Tubes is the first stock on the list, with its improving product mix emerging as a key growth driver.
- Why it stands out: High-margin value-added products now account for roughly 65% of the product mix, with the company targeting 75-80%.
- Profitability: Profit per tonne has remained above ₹5,000, despite fluctuations in steel prices.
- Technical setup: The stock has formed a strong base around the ₹1,800 level and moved above its 200-day exponential moving average.
- Buying zone: ₹1,900-₹1,915
- Support: ₹1,834
- 1-year fundamental target: ₹2,327
The improving product mix could provide APL Apollo with better pricing power and more stable earnings over time.
2. Blue Star — Cooling Demand and Strong Order Book
Blue Star is the second pick, benefiting from strong demand in the air-conditioning and consumer cooling segment.
- Why it stands out: Festival and summer sales have increased by around 30-35% year over year, according to the research commentary.
- Order book: The company has an order book of approximately ₹4,664 crore, providing visibility for future revenue.
- Technical setup: The stock is trading within an upward channel, while the RSI has moved above 60, indicating strong buying momentum.
- Buying zone: ₹1,690-₹1,710
- Support: ₹1,642
- 1-year fundamental target: ₹2,060
Strong consumer demand combined with a sizeable order book could support earnings growth if the momentum continues.
3. ICICI Bank — Strong Business Banking Growth
ICICI Bank is the third stock highlighted by Mirae Asset Sharekhan.
- Why it stands out: While some retail-loan segments have slowed, business banking, corporate and rural loan growth remained strong.
- Margins: Margins have remained relatively stable, while improving operational efficiency is supporting costs.
- Technical setup: The stock has broken above a medium-term falling trendline and continues to show positive momentum.
- Buying zone: ₹1,430-₹1,445
- Support: ₹1,388
- 1-year fundamental target: ₹1,750
The combination of loan growth, stable margins and improving efficiency provides the fundamental basis for the positive outlook.
4. Lumax Auto Technologies — Growing Faster Than the Auto Industry
Lumax Auto Technologies is the fourth pick, with its growth being supported by increasing content per vehicle.
- Why it stands out: Management expects the company to grow faster than the broader auto industry as it supplies more components per vehicle and increases its market share.
- Order visibility: The company has a three-year order book of approximately ₹1,450 crore.
- Earnings: Strong earnings growth is expected to support the company’s outlook.
- Technical setup: The stock has formed higher highs and higher lows and is trading above key moving averages after breaking out of a major chart pattern.
- Buying zone: ₹1,630-₹1,655
- Support: ₹1,584
- 1-year fundamental target: ₹2,130
The combination of rising vehicle content, market-share gains and a strong order book makes Lumax an interesting auto-component play.
5. UltraTech Cement — Scale and Rising Profitability
UltraTech Cement rounds out the five-stock list, with its scale and strong volume growth supporting the investment case.
- Why it stands out: UltraTech’s volume growth is around 13%, compared with approximately 7-8% for the broader cement industry, according to the commentary.
- Acquisitions: Recent acquisitions are contributing to improved profitability, with profit per tonne reportedly doubling over the past year.
- Green energy: The company is targeting approximately 85% green-energy usage by FY30.
- Technical setup: The stock is consolidating within a triangle pattern following a strong rally, potentially setting up for another breakout.
- Buying zone: ₹11,900-₹12,000
- Support: ₹11,520
- 1-year fundamental target: ₹14,200
UltraTech’s scale, volume growth and improving profitability make it one of the strongest large-cap cement plays in the list.
