ICICI Bank, L&T to Bharti Airtel: BofA lists 12 stocks to buy for up to 40% gains | Stock Market News

Bank of America (BofA) Securities has projected that the Nifty 50 index could reach 25,000 by December 2025, highlighting its attractive valuations following recent corrections. This forecast suggests a potential upside of approximately 11 percent from its current level of 22,545. Despite this optimism, BofA remains conservative regarding earnings expectations, positioning its estimates below the broader market consensus.

The brokerage also maintained a cautious stance on small and midcap stocks, anticipating negative returns in 2025 due to their relatively high valuations on key fundamental metrics. In terms of sectoral outlook, BofA expects telecom, financials, industrials, energy, IT, and auto stocks to contribute nearly 90 percent of Nifty’s overall earnings growth. Additionally, it sees rate-sensitive domestic cyclicals, such as financials and autos, benefiting from potential interest rate cuts by the Reserve Bank of India (RBI), which could support both economic expansion and credit growth.

BofA’s 12 stock picks

Bank of America (BofA) Securities has identified 12 large-cap stocks that can offer significant upside potential, ranging from 11 percent to 40 percent. The brokerage firm has provided detailed insights into each stock, highlighting key growth triggers and valuation attractiveness.

Bajaj Finance: BofA has set a price target of ₹9,350 for Bajaj Finance, indicating a potential upside of 11 percent. The brokerage remains optimistic about the company’s ability to manage asset quality stress effectively. Factors such as stable funding costs, peak credit costs, and proactive pruning in high-risk segments further support the bullish outlook. Additionally, the continued leadership of the managing director is expected to drive medium-term objectives.

Eicher Motors: With a price target of ₹6,000, BofA sees a 17 percent upside in Eicher Motors. The company remains a rare growth opportunity within the slowing two-wheeler market. The brokerage expects earnings and valuations to improve, with Eicher trading at 26x FY26 earnings and 23x FY27 earnings.

Divi’s Laboratories: The pharma major has been assigned a price target of ₹6,850, reflecting a 23 percent upside. BofA expects over 25 percent earnings growth over the next two years, driven by faster capacity ramp-up and potential upside from GLP-1-related opportunities.

ICICI Bank: ICICI Bank’s price target has been set at ₹1,500, implying a 23 percent upside. BofA noted the bank’s superior earnings visibility, strong asset quality, and high provision buffer, making it one of the safest lenders in the current macro environment.

Shriram Finance: Shriram Finance has received a price target of ₹780, indicating a 23 percent upside. Despite stress in certain vehicle finance segments, BofA remains confident in the company’s ability to deliver consistent asset quality, maintain growth, and benefit from lower funding costs.

Infosys: Infosys has been assigned a price target of ₹2,150 by BofA, reflecting a 27.5 percent upside. The IT major is expected to benefit from themes such as cloud, data, and ERP in a recovering demand environment. Currently trading at 23.5x 12-month forward price-to-earnings, Infosys is at a 5% discount to its five-year average.

Axis Bank: BofA has set a price target of ₹1,300 for Axis Bank, suggesting a 25 percent upside. The brokerage finds the stock attractive at 1.3x price-to-book, with growth and NIM contraction risks already factored into its valuation.

Titan: Titan has received a price target of ₹3,980, reflecting a 29 percent upside. BofA expects consistent mid-to-high teens revenue and earnings growth. Despite short-term gold price volatility, Titan’s focus on gold exchange, wedding segment expansion, and advanced purchase schemes are seen as long-term growth drivers.

Larsen & Toubro: L&T’s price target has been set at ₹4,150, indicating a 28 percent upside. BofA noted that order inflows and earnings per share (EPS) growth projections of 12% and 22%, respectively, make valuations attractive. A potential share buyback adds further upside potential.

Bharti Airtel: BofA has pegged Bharti Airtel’s price target at ₹2,085, reflecting a 28 percent upside. The brokerage expects another round of tariff hikes within the next 12 months, along with organic improvements in ARPU as more users shift from feature phones to smartphones and prepaid to postpaid plans. Additionally, lower capex and improving EBITDA should enhance free cash flow.

Mahindra & Mahindra: With a price target of ₹3,650, BofA sees a almost 34 percent upside in M&M. It dismissed concerns over Tesla’s potential entry into India, citing M&M’s competitive pricing and strong product lineup. Growth in the tractor segment, SUV market share gains, and a well-planned EV strategy further support the positive outlook.

HDFC Life: HDFC Life has the highest upside potential in BofA’s list, with a price target of ₹875, representing a 40 percent gain. The brokerage believes diversification across distribution channels, branch expansions, and balanced product offerings will support sustained growth. Strong momentum in Tier-2 and Tier-3 cities further strengthens the investment case.

Overall, BofA’s selection of large-cap stocks reflects confidence in companies with robust earnings visibility, attractive valuations, and sectoral tailwinds. With potential upsides ranging from 11 percent to 40 percent, these stocks present compelling investment opportunities amid evolving market conditions. Investors may find value in these picks, particularly in sectors poised for long-term growth.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.