stock recommendations: Hot Stocks: 4 stocks that may give returns between 12-25%

DLF

BROKERAGE: JEFFERIES Price Target: Rs 985 CMP: Rs 830 Upside: 18.7%

• Risk-Reward favourable with stock trading below net asset value (NAV), strong cash flows
• Recent stock underperformance on concerns over Gurugram residential demand
• Stock’s discount to NAV factors in these concerns

Ashok Leyland
BROKERAGE: GOLDMAN SACHS Price Target: Rs 290 CMP: Rs 246 Upside: 17.9%

• Profitability boost in FY25 with R&D expense expected to reverse in coming quarters
• Better monsoon, steady infrastructure spending, and stable macroeconomic indicators support business visibility in the rest of FY25
• Current valuation underestimates the upside opportunity in margin and sustainability in the mix shift towards higher tonnage vehicles

Indus Towers
BROKERAGE: CITI Price Target: Rs 500 CMP: Rs 445 Upside: 12.4%

• Prima facie enthused by buyback proposal to reward shareholders
• Signals confidence in free cash flow improvement and past dues recovery from Vodafone Idea
• If Bharti does not participate, the buyback could lead to its stake crossing 51% from 48.95%

Bandhan Bank
BROKERAGE: CLSA Price Target: Rs 240 CMP: Rs 192 Upside: 25%

• Valuations at one-time Price to Book (PB) are attractive and should re-rate with steady performance over the next few quarters
• Even at Rs 240, the stock would be cheap at nine times Price to Earnings (PE) Ratio
• Further re-rating would require clarity on the CGFMU (Credit Guarantee Fund for Micro Units) audit and management transition (new CEO appointment)