Big Movers on D-St: What should investors do with Jyothy Labs, RBL Bank and Solar Industries?

Indian market closed in the green for the second consecutive day in a row on Wednesday. The S&P BSE Sensex and Nifty50 closed flat with a positive bias.

Sectorally, buying was seen in realty, telecom, capital goods, banks, and financial stocks while selling was seen in IT, consumer durables, and oil & gas stocks.

Stocks that were in focus included names like Jyothy Labs which was up nearly 6 per cent, RBL Bank which gained over 17 per cent, and Solar Industries which hit a fresh 52-week high with strong volumes.


Here's what Rahul Goud, Research Analyst - Equity Research, CapitalVia Research recommends investors should do with these stocks when the market resumes trading today:

Jyothy Labs: Buy
FMCG company Jyothi Laboratories has multiple brands and numerous products. Its main business activities include the production and distribution of fabric whiteners, soaps, detergents, insect repellents, scrubbers, body care products, and incense sticks.

It is selling at a price-to-book ratio of 4.72 at the moment, compared to the sector's PB of 9.11, which suggests undervaluation.

In the past year, stocks have returned 14.43 per cent. Since 2014, the company has been producing free cash flow, which demonstrates the strength of its financial sheet.

Technically, the stock has broken out of the head and shoulders pattern. Investors can purchase the company at the current market price of Rs 190 with a stop loss of Rs 174 for a short-term target price of Rs 235.

RBL Bank: Avoid
RBL Bank is a banking organization that provides services and goods to consumers and small enterprises.

The lender's board approved raising up to Rs 3,000 crore on Wednesday. The money will be used to fuel the lender's commercial expansion and the stock is now trading at Rs 110.

Technically, the stock has been moving in a bearish direction since September 2019 and is currently trading at a resistance level; therefore, we suggest investors to avoid the stock and buy it on dips around Rs 80 with a stop loss of Rs 70 for a target price of Rs 105.

Solar Industries: Buy
Solar Industries India manufactures explosives. The business produces, distributes, and exports initiating systems and industrial explosives. The stock has increased by 102.51 per cent over the past year.

Revenue growth over the past five years has averaged 20.02 per cent each year compared to the industry average of 15.75 per cent, demonstrating the company's leadership. Technically, the stock is trading at or around all-time highs with high volumes, which shows that market participants are confident.

Investors might purchase shares of the company above Rs 3451 with a stop loss of Rs 3370 and a short-term target price of Rs 3600.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)