HDFC Bank, LIC, DLF, Senco Gold and 2 other stocks to buy for solid gains in 2025

HDFC Bank Ltd, Life Insurance Corporation of India Ltd, DLF Ltd, Samvardhana Motherson International Ltd (SAMIL), Amar Raja Energy and Mobility Ltd and Senco Gold Ltd are six stocks that Religare Broking believes ca deliver strong gains in 2025. The brokerage has asked investors to focus on accumulating fundamentally strong stocks during market dips, particularly those with solid balance sheets and growth potential, to navigate market fluctuations.

On HDFC Bank, Religare Broking said the bank's credit-to-deposit (CD) ratio experienced significant deterioration after the merger with HDFC, reaching levels as high as 108.4 per cent. But, the trend has recently begun to reverse, with the CD ratio falling to 100.7 per cent in Q2FY25, as the bank has increased its focus on deposit growth. The brokerage said HDFC Bank's asset quality continues to remain robust as both Gross NPA (GNPA) and Net NPA (NNPA) remain at lower end of its historical range and is expected to remain around current levels only.

"The elevated credit-deposit (CD) ratio has been a significant challenge for HDFC Bank, adversely affecting its margins and growth, which in turn has led to a decline in its valuation multiple. However, as the bank gradually improves its CD ratio, we can expect to see a gradual enhancement in margins over the next few quarters, and the potential for a re-rating should not be overlooked," it said.

The brokerage said investors can accumulate HDFC Bank shares in the Rs 1,720-1,810 range for the target of Rs 1,920-2,008 levels in 2025.

In the case of LIC, Religare Broking said the insurer has significantly boosted its share in non-participating (non-par) products, enhancing its VONB margins. Over the past year, the contribution of non-par products in individual APE rose from Rs 967 crore to Rs 3,164 crore, increasing their share from 11.1 per cent to 27.7 per cent. This focus on high-margin non-par products is expected to further improve its margins, Religare Broking said.

"LIC of India, a leading life insurer showing strong growth from steady premium income and improved margins from high-margin non-participating products and non-par products. With a strategic focus on expanding its product mix and enhancing profitability, LIC is well-positioned for continued success in the evolving insurance landscape," Religare Broking said.

The brokerage advised investors to accumulate the stock in the Rs 840-900 range for the targets of Rs 840-900 levels.

DLF has a robust launch pipeline with a projected sales potential of Rs 41,000 crore for FY2025 and Rs 63,500 crore in the medium term beyond FY2025, highlighting strong revenue growth potential. Some key upcoming projects include Dahlias (Phase 5), Downtown Gurugram, new developments in Goa and Mumbai, and the next phase of Privana. Further, the management has retained a pre-sales guidance of Rs 17,000 crore for FY2025.

"DLF is expected to benefit from the strong growth potential of the real estate industry. The residential segment in India is experiencing a resurgence, with demand exceeding supply in major cities. Urbanization, increasing household incomes, and a desire for homeownership are fueling demand in the residential sector," Religare Broking said. The target range for DLF is Rs 960-1,050 and the accumulation range suggested is Rs 800-850.

Religare Broking said Samvardhana Motherson International is focused on diversifying its revenue streams through its "3CX10" strategy, ensuring no single customer, component, or country contributes more than 10% to its overall revenue.

"With 43 strategic acquisitions completed between 2002 and March 2024, the company emphasizes disciplined capital expenditure and prudent financial governance. Looking ahead, SAMIL will continue its OEM-guided acquisitions, driven by customer requirements and supported by a prudent funding philosophy and a focus on organic expansion," Religare Broking said.

The accumulation range for this stock is Rs 145-160 and the target is Rs 175-195.

"With a strategic focus on high-growth areas like data centers, EV batteries, and 5G capex, For Amara Raja is investing in a giga cell plant and an EV battery pack facility, positioning itself to capitalise on emerging market trends," Religare said while suggesting a target range of Rs 1,350-1,440 on Amara Raja.

Senco Gold, the brokerage said, is expanding its presence in the lab-grown diamond jewellery market through its sub-brand, Sennes. This brand targets the "aspirational upper middle class," offering luxury lifestyle products including jewellery, leather bags, and lab-grown diamonds. They plan to have 8-10 Sennes stores by the end of FY25.

"Further, the recent cut in customs duty on gold imports is expected to boost demand over the long term. The management is optimistic that this move will support their revenue growth target of 18–20 per cent for FY25, helping drive sustained growth for the company," Religare said while suggesting a target of Rs 1,200-1,330 on the stock.