Bengaluru, July 18 -- The Brokerage firm Jefferies has highlighted three 'fallen angels' as its top contra picks for the next 12 months, pointing to strong potential for a cyclical recovery despite their premium valuations.

While the brokerage acknowledges that these stocks are "not cheap by any stretch of imagination," it believes the fundamentals are set for an upturn that could drive share prices higher.

Jefferies also notes that even if its recovery thesis doesn't fully materialize, the downside risk from current levels appears limited, making these picks attractive contrarian bets in the current market environment. In this article, we take a closer look at these three stocks.

1. Hindustan Unilever Ltd With a market capitalization ...