Recommended stocks to buy today: Top stock picks by market experts for 21 May

With the selling bias showing its colour once again the bulls have been pushed to the background and will need more encouraging triggers to step up the momentum to the upside.

The Sensex dropped 1.06% to close at 81,186.44 points on Tuesday. The Nifty 50 declined by 1.05% to end the day at 24,683.90. Only three of the 30 Sensex stocks ended in the green while the rest declined, with auto, financial, and defence stocks bearing the brunt of the selling.

Best stocks to buy today: Recommended by NeoTrader’s Raja Venkatraman

Chennai Petroleum Corp. Ltd (CHENNPETRO)

Current market price: ₹675

Buy CMP and dips to: ₹650 | Stop: ₹635 | Target: ₹725-740

• Why it’s recommended: Chennai Petroleum, after posting strong quarterly results, showed a strong recovery in its stock the past few days. In the process, its share price has formed a nice rounding pattern at higher levels, signaling a potential upward bias. With encouraging tailwinds investors can consider going long on this stock. A strong breakout seen on Tuesday signals potential for more upside.
• Key metrics 
  • P/E: 45
  • 52-week high: ₹1,275
  • Volume: 6.19 million
• Technical analysis: Support at ₹450; resistance at ₹800.
• Risk factors: Volatility in crude oil prices, project implementation risks, and potential environmental impacts
• Buy: CMP and dips to ₹650
• Target price: ₹725-740 in 1 month
• Stop loss: ₹635

Jubilant Pharmova Ltd (JUBLPHARMA)

Current market price: ₹989.30

Buy above: ₹991 and dips to ₹950 | Stop: ₹935 | Target: ₹1,090-1,150

• Why it’s recommended: The Jubilant Pharmova stock has been under pressure in recent months and its prices have formed a rounding bottom, leading to a strong breakout above the value area resistance of about ₹970. Robust volumes seen recently signal some positive vibes emerging in this counter in the coming days. 
• Key metrics
  • P/E: 292
  • 52-week high: ₹1,310
  • Volume: 762,000
• Technical analysis: Support at ₹777; resistance at ₹932
• Risk factors: Compliance with health regulations, fluctuation in healthcare policies, manufacturing inefficiencies
• Buy: Above ₹991 and dips to ₹950
• Target price: ₹1,090-1,150 in 1 month
• Stop loss: ₹935

Stocks to trade: Trade Brains’ recommendations for 21 May

Dabur India Ltd

Current price: ₹476

Target price: ₹565 in 12 months

Stop-loss: ₹431

Why it’s recommended: In India, FMCG is the fourth largest sector contributing 3% to GDP and providing jobs to nearly 3 million people with the market size being valued at $245.39 billion in 2024. This is expected to grow 15-17% by revenue in FY25, driven by rising disposable incomes, rural penetration, and e-commerce expansion. Total revenue of FMCG market is expected to grow at a CAGR of 27.9% through 2021-27, reaching nearly $ 615.87 billion.

Dabur India is among the top four FMCG companies in India. It caters to the following business segments – healthcare, personal care, and food products.

Over the years, the company has been focusing on manufacturing and selling ayurvedic products. Their portfolio includes Dabur Amla, Dabur Red Paste, Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara, Dabur Lal Tail, and Dabur Real. 

The company has manufacturing facilities in 22 locations with 14 in India, and one each in the UAE, Sri Lanka, South Africa, Nepal, Egypt, Bangladesh, Turkey, and Nigeria, offering products in over 100 countries across the globe, contributing 26% of its business from International regions. Dabur offers over 400 products across 21 categories and over 1,000 Stock Keeping Units (SKUs). Dabur India has built a strong distribution network of 8.5 million retail outlets across India.

For FY25, the company has reported revenue from operations of ₹12,563 crore, up by 1.3% from ₹12,404 crore for the same period. Revenue from International business is ₹3,281 crore, a growth of 7.7%. Dabur acquired 51% Compulsory Redeemable Preference Shares in Sesa Care Private Ltd (Sesa) at a cash consideration of ₹12.6 crore. Sesa holds the number three position in the ayurvedic hair oil category. It is expected to help the company expand its foothold in the ayurvedic oil business in the medium term.

Verticals contributing to Dabur’s domestic business—49.7% from Home & Personal care, grew by 0.5% YoY, 31.3% from healthcare, up by 2.2% YoY, 2% from food, increased by 18.4% YoY, and beverages contributing over 17%, increased by 8.8% YoY.

Risk factor: The company remains exposed to intense competition in the ayurvedic and herbal segment with multiple established players, including some large multinational players, as well as domestic companies. There is a risk of growth slowdown due to a challenging macroeconomic environment. Also remains exposed to agro-climatic risk, which could result in variations in crop output/prices as Dabur has a healthy dependence on agri commodities.

Whirlpool of India Ltd

Current price: ₹1,300

Target price: ₹1,490 in 12months

Stop-loss: ₹1,205

Why it’s recommended: Whirlpool recorded a growth rate of 16% in its consolidated total income, which stood at ₹8,110.16 crore in FY25 as against ₹6,993.59 crore in FY24. Net profit jumped 62% from ₹224.3 crore in FY24 to ₹362.78 crore in FY25. The board of directors recommended a final dividend of ₹5 per share.

Whirlpool is constantly focusing on brand campaigns. It collaborated with HUL in Q2 for a joint marketing campaign of HUL’s Surf Excel and Whirlpool’s washing machine, aiming to improve their penetration in the market. The company is also focused on new product launches in its refrigerators and washing machine segments to cater to the ever-changing customer preferences.

Whirlpool generates around 30% of its revenue from the June quarter owing to the seasonal support during summer. It is also investing funds in the front-end capability and capacity, including customer services and sales, and is constantly working towards greater execution, driving its premiumization goals, including stronger visibility of premium lines and new ranges. Whirlpool is also focused on better pricing strategy, especially in their premium lines, and continues to leverage greater customer relationships.

Furthermore, as per the IBEF report, the washing appliance industry is anticipated to grow at a CAGR of 7.65% to reach $5.43 billion by 2029, and the refrigerator market is expected to grow at a CAGR of 9.37% to reach $12.1 billion by 2033. The dishwasher market is expected to cross $90 million by 2025-26, supported by increasing demand from metropolitan cities like Mumbai, Bengaluru, Delhi, and Hyderabad. 

Key growth drivers are increasing share of fully automatic washing machines, inverted ACs, and larger refrigerators due to premiumization and prioritization of aesthetics beyond just functional machines. Penetration of smart appliances is estimated to reach 10% by 2028 from 4% in 2023. Other key factors, such as the availability of credit for consumer financing and omnichannel availability, may act as a tailwind for the sector. Currently, India’s penetration of ACs & refrigerators is 10% and 35%, respectively, way lower than the world average. Further, AC penetration in India is projected to reach 40% by 2050.

Risk factors: A significant part of the rural and semi-urban population is facing issues with affordable consumer goods due to increased premiumization. Thus, to improve penetration in India, more affordable-priced consumer durables should be marketed. Additionally, the country faces higher costs of logistics due to inefficiencies, which could lead to increased prices borne by end consumers. Furthermore, changes in e-waste regulations could impact Whirlpool’s margins negatively, affecting its growth in profitability.

Best stock recommendations for today by MarketSmith India

Buy: Fine Organic Industries Ltd (current price: ₹4,626.1)

• Why it’s recommended: Strong financial performance, industry leadership
• Key metrics: P/E: 33.87, 52-week high: ₹5,958.85, volume: ₹16.92 crore
• Technical analysis: Given trendline breakout
• Risk factors: Exposure to raw material price volatility, regulatory, and environmental compliance risks
• Buy at: ₹4,626.10
• Target price: ₹5,390 in three months
• Stop loss: ₹4,260

Buy: Sunteck Realty Ltd (current price: ₹417.75)

• Why it’s recommended: Strategic presence in high-growth micro-markets, robust project pipeline, and presales growth
• Key metrics: P/E: 40.18, 52-week high: ₹699, volume: ₹51.15 crore
• Technical analysis: Reclaimed its 100-DMA
• Risk factors: Liquidity risks, project execution risks
• Buy at: ₹417.75
• Target price: ₹480 in three months
• Stop loss: ₹389

Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

MarketSmith India: Trade name: William O’Neil India Pvt. Ltd; Sebi-registered research analyst registration number: INH000015543

Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729.

Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.