Top stock picks by market experts for 2 June

The Nifty 50 closed at 24,750.70, down 0.33%, while the Sensex fell 0.22% to 81,451.01. Sectoral performance was mixed—PSU Banks led with a 2.88% gain, while metal, PSE, and auto indices declined 1.69%, 1.14%, and 0.98%, respectively.

Two stock recommendations for today by MarketSmith India:

APAR Industries Ltd (current price: 8,114)

Why it’s recommended: Consistent financial growth, diverse business segments

Key metrics: P/E: 39.13 | 52-week high: ₹11,779.90 | Volume: ₹ 59.71 crore

Technical analysis: Trendline breakout

Risk factors: Raw material price volatility, cyclicality of end-user industries

Buy at: ₹8,114

Target price: ₹9,450 in three months

Stop loss: ₹7,420

Also Read: This textile star’s rally masks a margin meltdown. Should investors be worried?

ITC Hotels Ltd (current price: ₹216.50)

Why it’s recommended: Strong post-demerger performance, asset-light expansion strategy.

Key metrics: P/E: 169.76 | 52-week high: ₹ 223 | Volume: ₹224.78 crore

Technical analysis: Retest of trendline breakout

Risk factors: Cyclical nature of the hospitality industry, intense competition

Buy at: ₹216.50

Target price: ₹255 in three months

Stop loss: ₹199

Top three stocks recommended by Ankush Bajaj:

HDFC Bank Ltd (current price: ₹1945)

Why it’s recommended: The stock has shown a strong rebound from support levels and, on the lower time frame, has given a consolidation breakout, which indicates the start of a new trend and suggests a potential for further upside.

Key metrics: Resistance level: ₹1,975 (short-term target) | Support level: ₹1,924 (pattern invalidation level)

Pattern: Consolidation breakout on lower timeframe with sustained price action

RSI: Bullish on both daily and lower timeframes, confirming strength in the breakout

Technical analysis: The breakout from the consolidation zone on lower timeframes, combined with improving RSI and price strength, points to a continuation of the bullish trend. Sustaining above ₹1,945 increases the probability of achieving the projected target.

Risk factors: A breakdown below ₹1,924 could invalidate the bullish breakout. Broader market corrections or sector-specific weakness may also affect price action.

Buy at: ₹1,945

Target price: ₹1,975 in 4–5 days

Stop loss: ₹1,924

Also Read: FMCG stocks face margin pressure. Here’s why

Tata Steel Ltd (current price: ₹161)

Why it’s recommended: The stock is in an uptrend and is currently trading at a major demand zone between ₹161– ₹158. A bounce back is expected from this level, suggesting a potential for further upside.

Key metrics: Resistance level: ₹167– ₹171 (short-term target zone) | Support level: ₹158 (pattern invalidation level)

Pattern: Pullback setup from demand zone in ongoing uptrend

RSI: Bullish reversal expected from oversold zone on lower time frames, indicating early signs of strength

Technical analysis: The stock is approaching a key support area within an ongoing uptrend. The confluence of the demand zone and oversold RSI on lower timeframes increases the likelihood of a bounce toward ₹167– ₹171.

Risk factors: A breakdown below ₹158 could invalidate the bullish setup. Broader market weakness or unexpected sector pressure could affect price movement.

Buy at: ₹161

Target price: ₹167– ₹171 in 4–5 days

Stop loss: ₹158

Also read: This textile star’s rally masks a margin meltdown. Should investors be worried?

Union Bank Ltd (current price: ₹146.80)

Why it’s recommended: The stock is showing strength in an ongoing uptrend and has taken support near ₹145 levels. On the lower time frame, it is forming a bullish structure, indicating the potential for a quick upward move.

Key metrics: Resistance level: ₹151– ₹153 (short-term target zone) | Support level: ₹144 (pattern invalidation level)

Pattern: Support-based entry in bullish continuation setup

RSI: Bullish on lower timeframes with rising momentum, supporting the price action

Technical analysis: Union Bank has maintained higher lows and is showing signs of fresh momentum from the support zone. Sustaining above ₹146.80 may trigger a move toward the ₹151– ₹153 zone.

Risk factors: A breakdown below ₹144 could negate the bullish view. Broader market volatility or sector rotation could limit upside.

Buy at: ₹146.80

Target price: ₹151– ₹153 in 4–5 days

Stop loss: ₹144

Stocks to trade today as recommended by Trade Brains Portal

Target price: ₹ 3,650 in 16-24 months

Stop-loss: ₹ 2,862

Why it’s recommended: Pidilite is a pioneer in consumer and specialty chemicals in India and the market leader in the adhesives and sealants industry. It offers a diverse product range, including adhesives, sealants, waterproofing solutions, construction and automotive chemicals, arts and crafts products, industrial resins, organic pigments, polymers, and more. As of FY25, the company has 68 manufacturing units, with over 1,300 SKUs exported annually and more than 60 distribution centers across the country. It has some popular brands in its portfolio, like Fevicol, M-Seal, Fevi kwik, Dr Fixit, Roff, and more.

The company has consistently achieved a consolidated net sales growth of 11% CAGR over the past decade. The company has managed to improve its Ebitda margin, which has been in a steady upward trend over the last 10 years, rising from 16% in FY15 to 23% in FY25.

Moreover, net sales for FY25 stood at ₹13,094 crore, up by 6% from ₹12,337 crore in FY24. EBITDA stood at ₹3,013 crore in FY25, a growth of 11% from ₹2,707 crore in FY24. Profit before tax and exceptional items for FY25 stood at ₹2,848 crore, growing by 16% YoY. Profit after tax for FY25 was at ₹2,096.17 crore as against ₹1,747.42 crore in FY24, recording a growth of 20%.

The company has a diversified portfolio, which currently caters to various industries like infrastructure, real estate, packaging, paper, leather, paints, and more. It is venturing into high-growth industries like electronics, EVs, and semiconductors. It has an exclusive partnership with CollTech Group, which has extensive experience in providing electronics adhesive solutions.

This partnership may become a good synergy between both companies to expand their presence further in the electronics sector. Additionally, Brand like Roff has a lot of room for growth due to growth in the tile market, which stood at ₹43,000 crore as of FY24 and is expected to reach ₹62,000 crore by 2027. Key growth drivers for the company are penetration in rural and semi-urban markets and international expansion through various business models. On a macro view, the specialty chemicals market in India is expected to grow faster than China, increasing its market share from 3-4% in 2021 to 6% by 2026, as per a Crisil report.

Risk Factor: A significant portion of raw materials is exposed to crude oil price volatility. Key elements like vinyl acetate monomer (VAM), synthetic resins, and other derivatives are crude oil-based and are used by the company. The company has international subsidiaries in Bangladesh, Sri Lanka, and African countries, which are prone to geopolitical and economic uncertainties and volatility in input costs.

Cipla Ltd (Current price: ₹ 1,463)

Target price: ₹ 1,690 in 12 months

Stop-loss: ₹ 1,345

Why it’s recommended: Cipla is a global pharmaceutical company with more than 85 years of experience. It supplies branded and generic medicines to more than 170 countries globally. The company is well diversified in both geographic presence and product offerings. It offers more than 1,500 products in 65 therapeutic categories, with more than 50 dosage forms covering a wide spectrum of diseases.

The company’s Indian business accounts for 42% of Cipla’s revenue and grew at a healthy 7% YoY as of FY25. Cipla is the largest pharmaceutical company in India by volume. It has 26 brands that earn more than ₹100 crore in revenue. One of its brands, Foracort, became the 1st brand to cross ₹900 crore in the history Indian pharmaceutical market.

In FY25, Cipla saw a growth of 8% YoY in its income from operations at ₹27,548 crore, with an Ebitda growth of 14% at ₹7,128 crore. Their Ebitda margin grew from 24.5% in FY24 to 25.9% in FY25, and the return on invested capital (ROIC) grew to 33% from 31% last year. Cipla recorded a profit after tax (PAT) growth of 28%, from ₹4,106 crore in FY24 to ₹5,273 crore in FY25, with their PAT margin expanding from 16.1% to 19.1% now. Cipla’s R&D investment stood at ₹1,524 crore, which is 5.5% of revenue.

The company’s total debt has been reduced from ₹559 crore in FY24 to ₹438 crore in FY25, and it has been maintaining a healthy cash balance of ₹10,807 crore as of FY25. Consumer health brands such as Nicotex, Omnigel, and Cipladine ranked no. 1 in the consumer health market. Cipla’s One Africa business, constituting 14% of revenue, grew at 12%, and the emerging markets and Europe business, which accounts for 12% of revenue, saw a growth of 15%. Cipla’s North America business, contributing 29% of total revenue, grew marginally by 3% and secured drug approvals from ANDA & NDA for Lanreotide Injection, Nilotinib, and Nano Paclitaxel.

Total ANDA & NDA portfolio and pipeline as of FY25 stood at 284, with 109 under approval and tentatively approved categories. Cipla’s branded prescription business continued to outpace the market growth in key chronic therapies like respiratory, anti-infectives, urology, and cardiac.

Trade Generics is back on a growth trajectory with 19 new launches in FY25, anchor brands of the subsidiary Cipla Health Limited continue to grow bigger. The company is focused on expanding its pipeline, with key respiratory, peptide, and complex generic assets in progress, and several launches expected between FY26 and FY28. Cipla has made many strategic alliances throughout the year, which have accelerated its inorganic growth.

Risk Factor: Cipla operates in a highly regulated industry, and any changes in regulatory norms or failure to comply with existing norms could impact its operations. Additionally, any interruptions in the supply chain and non-compliance with required quality norms by vendors can disrupt its manufacturing process, leading to product shortages and a material adverse impact on the reputation and revenues.

Additionally, the US president’s recent plan to cut down drug prices in the country could impact the revenues of Cipla, as the company generates 29% of its revenue from North America as of FY25.

Raja Venkatraman has recommended the following two stocks:

Shaily Engineering Plastics Ltd 

CMP: ₹2,016.20 | Target: ₹2,250–2,350 | Stop Loss: ₹1,850 | Time Horizon: 1 Month

Shaily Engineering Plastics Ltd is navigating global trade headwinds—including the reimposed 26% Trump-era tariffs—by doubling down on supply chain partnerships, innovation, and a premium product strategy. The company’s Q4 FY25 performance underscored its adaptability, with total income rising 27.7% year-on-year to ₹217.83 crore, operating profit up 75.7% at ₹43.39 crore, and net profit surging 47.9% to ₹28.59 crore.

Technically, Shaily has held firm through recent volatility, forming higher lows and consolidating between ₹1,400 and ₹1,950. A bullish breakout in late April, supported by volumes, suggests upside potential toward the ₹2,250– ₹2,350 range. Traders may consider long positions above current levels or on dips toward ₹1,900, with a stop-loss below ₹1,850.

Elgi Equipments Ltd

CMP: ₹535.20 | Target: ₹615 | Stop Loss: ₹490 | Time Horizon: 1 Month

Elgi Equipments Ltd, a key player in air compressors, is adapting to sectoral consolidation and global trade challenges by scaling operations, enhancing efficiencies, and diversifying into premium segments. Its Q4 FY25 revenue rose 15% to ₹993 crore, while net profit jumped 34% year-on-year to ₹102 crore, thanks to proactive cost and pricing strategies that offset export tariffs.

After a sharp correction post-December highs, the stock formed a double bottom near ₹100 and has rebounded strongly, crossing the Ichimoku Cloud and key resistance at ₹500. A breakout above the neckline, rising volumes, and strengthening momentum indicators point to further upside. Investors can consider long entries above CMP or on dips toward ₹505, targeting ₹615 with a stop-loss below ₹490.

Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.

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.