Hot Stocks: 3 stocks that may give returns between 16-24%

Brokerages initiated coverage on Kirloskar Oil Engines, Union Bank of India, APL Apollo Tubes with 'buy' ratings. Their price targets imply returns of 16% to 24% based on Monday’s closing price.

KIRLOSKAR OIL ENGINES
BROKERAGE: JEFFERIES Price Target: Rs 2,815 CMP: Rs 2,266.10 Upside: 24%

• Niche product play in a consolidated genset industry, which has pricing discipline
• Strong demand outlook with an estimated 22%. Earnings Per Share growth over FY26-30 on a compounded basis

APL APOLLO TUBES
BROKERAGE: BOFA SECURITIES Price Target: Rs 2,170 CMP: Rs 1,803.70 | Upside: 20%

• Best risk-adjusted play in building materials given its leadership, execution and relative valuation
• Leader in India's structural steel tubes market and the best way to play the category's long growth runway

UNION BANK OF INDIA
BROKERAGE: IDBI CAPITAL Price Target: Rs 187 CMP: Rs 161 | Upside: 16%

• Stock trades at 1 time estimated Price to Adjusted Book Value, a discount to peers despite a superior return profile
• CASA (Current Account and Savings Account) franchise build and operating leverage are the twin re-rating catalysts