Top three stocks recommended by Ankush Bajaj for 3 June
Buy: Bank of India (current price: ₹125.25)
- Why it’s recommended: The stock has recently shown strong upward momentum and is trading near breakout levels with increasing volume, indicating buying interest and potential continuation towards higher targets.
- Key metrics: Resistance level: ₹133-135 (short-term target range); support level: ₹121 (pattern invalidation level); pattern: Bullish continuation with strong momentum and volume confirmation
- RSI: Trending bullish on both daily and intraday charts, signaling strength in the ongoing move
- Technical analysis: Bank of India is trading with positive bias and has maintained higher highs and higher lows on the lower time frames. The current price action near ₹125.25, supported by strong RSI, suggests the stock could test the ₹133-135 zone in the coming sessions if it sustains above the breakout level.
- Risk factors: A breakdown below ₹121 could invalidate the bullish setup and attract profit booking. Any sharp correction in the PSU banking space or broader indices may impact the expected move.
- Buy at: ₹125.25
- Target price: ₹133-135 in 4-5 days
- Stop loss: ₹121
Buy: Cholamandalam Investment & Finance Co. Ltd (current price: ₹1,581)
- Why it’s recommended: After making a new lifetime high, the stock witnessed selling pressure and has now bounced back from the demand zone between ₹1,580-1,545. This suggests a potential pullback move, supported by price action and recovery from key support levels.
- Key metrics: Resistance level: ₹1,650-1,670 (short-term target range. Support level: ₹1,547 (pattern invalidation level); Pattern: Bullish pullback setup from demand zone
- RSI: Bullish on both daily and intraday time frames, supporting the possibility of a short-term upside move
- Technical analysis: CHOLAFIN has shown strength by rebounding from its demand zone, and the current price structure indicates a likely pullback towards the ₹1,650-1,670 zone. Sustaining above ₹1581 with improving momentum supports a bullish outlook in the near term.
- Risk factors: A breakdown below ₹1,547 may invalidate the expected pullback. Broader market weakness or negative cues from the financial sector could also weigh on price action.
- Buy at: ₹1,581
- Target price: ₹1,650-1,670 in 4-5 days
- Stop loss: ₹1,547
Buy: AU Small Finance Bank Ltd (current price: ₹718.65)
- Why it’s recommended: On the daily chart, the stock has closed above a recent trendline, confirming a breakout. Additionally, on the 45-minute time frame, AUBANK has given a triangle breakout at ₹700, projecting a potential target around ₹745. The setup indicates that the ongoing rally is likely to continue.
- Key metrics: Resistance level: ₹738-745 (short-term target range); Support level: ₹708 (pattern invalidation level); Pattern: Trendline breakout on daily chart and triangle breakout on 45-min chart
- RSI: Bullish on both daily and lower time frames, supporting strength in the breakout
- Technical analysis: AUBANK has confirmed a breakout on multiple time frames, showing strong bullish structure. The price action above ₹718.65, backed by volume and momentum, supports further upside toward the projected targets.
- Risk factors: A fall below ₹708 could invalidate the breakout structure. Broader banking sector weakness or negative news flow may affect short-term sentiment.
- Buy at: ₹718.65
- Target price: ₹738-745 in 4-5 days
- Stop loss: ₹708
Two stock recommendations for today, 3 June, by MarketSmith India
Buy: Excel Industries Ltd. (current price: ₹1,218.80)
Why it’s recommended: Diverse product portfolio across high-growth sectors, strong legacy, and indigenous innovation.
Key metrics: P/E: 17.02, 52-week high: ₹ 1,760.00, volume: ₹ 4.92 crore
Technical analysis: Trendline breakout
Risk factors: High dependency on agrochemical sector, raw material price volatility
Buy at: ₹ 1,218.80
Target price: ₹ 1,450 in three months
Stop loss: ₹ 1,110
Buy: AU Small Finance Bank Ltd (current price: ₹718.65)
Why it’s recommended: Strong focus on underserved markets, diversified loan book.
Key metrics: P/E: 24.51, 52-week high: ₹ 810, volume: ₹ 459.59 crore
Technical analysis: bullish flag pattern breakout
Risk factors: Geographical concentration risk, asset quality risks in MSME and vehicle finance
Buy at: ₹ 718
Target price: ₹ 790 in three months
Stop loss: ₹ 690
Stocks to trade today, recommended by Trade Brains Portal for 3 June
Dr. Lal PathLabs Ltd
Current price: ₹ 2,777
Target price: ₹3,380 in 16-24 months
Stop-loss: ₹ ₹2,475
Why it’s recommended: Founded in 1949, Dr. Lal PathLabs is one of India’s leading diagnostic chains, offering a comprehensive range of pathology and radiology services. Its pan-India presence includes 12,365 pick-up points (PUPs), 6,607 patient service centers (PSCs), and 298 clinical laboratories as of FY25. The company serves patients and healthcare providers with over 3,100 pathology tests, 1,400+ radiology/cardiology tests, and 385 test panels, operating across more than 23 countries.
Key operational strengths
A logistics backbone supported by 280+ satellite labs and 36 NABL accreditations.
Partnerships with 150+ hospitals/labs.
A medical team of 250+ physicians and 1,800+ employees.
Financial highlights (FY25)
Revenue: ₹2,461 crore, up 10.5% YoY
Ebitda: ₹696 crore, up 14.2%, with 28.3% margin
PAT: ₹492 crore, up 35.9%, with a 20% net margin
The management is guiding for 11–12% revenue growth in FY26, driven by test portfolio expansion and rising patient volumes. Ebitda margins are expected to hover around 27%, as the company invests in growth regions (especially South and West India), digital infrastructure, and talent acquisition.
Growth strategy
Continued focus on digital expansion, including an AI-based recommendation engine to improve patient experience.
Increasing depth in high-growth segments such as genomics, autoimmune disorders, and reproductive diagnostics.
Accelerated presence in Tier-3 and Tier-4 cities, particularly in North and East India; 18 new labs added in FY25.
Ongoing integration of Suburban Diagnostics (acquired in 2021) to broaden reach and service offerings.
Emphasis on volume-led growth by increasing both patient footfall and tests per patient.
Actively exploring inorganic growth opportunities through M&A, leveraging its strong brand recall.
Risk factors: The accuracy of diagnostic services is critical. Any lapses due to operational errors, poor maintenance, or mishandling could damage reputation and trust. The diagnostic space remains fragmented and highly competitive, with pricing pressure from numerous unorganized players offering similar services.
Mahindra & Mahindra Financial Services Ltd
Current price: ₹ 260
Target price: ₹ 310 in 16-24 months
Stop-loss: ₹ 230
Why it’s recommended: Established in 1991, Mahindra Finance is among India’s leading non-banking financial companies (NBFCs), catering to a wide customer base across rural and semi-urban India. The company operates a robust pan-India network with over 1,365 branches across 27 states and 7 Union Territories, covering 516,000 villages and 8,000 towns, and serving 11 million customers through 6,000+ dealers and 10 OEM partnerships.
Its diverse portfolio spans vehicle loans, SME financing, home finance, insurance broking, mutual funds, personal loans, and fixed deposits, with an AUM of $14.1 billion.
Financial highlights (FY25)
Total disbursements: ₹60,741 crore, up from ₹58,647 crore in FY24
Profit after tax: ₹2,261 crore, up 16% YoY
Total income: ₹18,530 crore, up 16% YoY
Loan book: ₹1,16,214 crore, up 17% YoY
Interest income: ₹16,566 crore, up 15% YoY
Interest expenses: ₹8,415 crore, up 21% YoY
The company maintained healthy asset quality, supported by a tech-led approach to underwriting and collections. Credit cost stood at 1.3%, net interest margin at 6.5%, and gross stage 3 (GS3) assets at 3.7%.
The company maintained healthy asset quality, supported by a tech-led approach to underwriting and collections. Credit cost stood at 1.3%, net interest margin at 6.5%, and gross stage 3 (GS3) assets at 3.7%.
Growth drivers
Mahindra Finance has focused on targeting resilient borrowers, digitizing processes via third-party API integrations, and using data analytics to drive collection efficiencies. The company’s SME segment saw a 48% jump in disbursements, accounting for 5% of the total. Among vehicles:
Passenger cars rose 8%, making up 41% of disbursements
Tractor loans grew 3%, contributing 10%
Pre-owned and three-wheeler financing accounted for 16% and 4%, respectively
Commercial vehicle financing remained stable at 21%
Other segments (farm implements, gensets, personal/consumer loans) grew 21%, contributing 2%
Mahindra Finance’s diversified portfolio and strong brand in rural markets position it well to benefit from increased rural spending and the uptick in auto and SME financing.
Risk factors: Credit risk remains a concern, particularly in rural markets, where loan delinquencies could lead to higher NPAs and impact profitability. The company’s dependence on multiple funding sources exposes it to liquidity risks, especially during times of financial market stress. Continued performance depends on effective risk management, prudent capital allocation, and strong administrative controls.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
MarketSmith India: Trade name: William O’Neil India Pvt. Ltd; Sebi-registered research analyst registration number: INH000015543
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