The global brokerage house, Jefferies has given a ‘Buy’ rating to three companies operating in very different businesses – asset management, wealth and investment platforms, and pharmaceuticals.

The common factor? Jefferies believes each of them has identifiable growth opportunities that could support earnings expansion over the medium term.

The brokerage has maintained a ‘Buy’ rating on HDFC Asset Management Company (AMC), Groww and Emcure Pharmaceuticals, with target prices indicating upside potential of around 18% from current levels.

Let’s take a look at the key details –

HDFC AMC

Jefferies has maintained a Buy rating on HDFC AMC with a target price of Rs 3,090. This implies an upside potential of around 18% from the current market price.

Jefferies remains constructive on HDFC AMC. This is despite concerns around a slowdown in mutual fund inflows during May 2026.

According to the brokerage report, the weaker month came after two particularly strong months and does not indicate any deterioration in underlying trends.

The brokerage noted that “The slowdown in May 2026 should be seen in the light of very strong flows in Mar-Apr’26.”

Jefferies believes the company’s margins remain stable because the impact of recent changes in Total Expense Ratio (TER) regulations has been passed on to distribution partners and the broader ecosystem.

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The report also highlighted emerging opportunities in Gujarat International Finance Tec-City (GIFT City), Alternative Investment Funds (AIFs) and Portfolio Management Services (PMS). 

Another area investors may watch is the relationship with HDFC Bank. As per Jefferies report, customer overlap between the two institutions remains relatively low, leaving room for greater collaboration.

Jefferies expects HDFC AMC to deliver around 21% growth in Assets Under Management (AUM) and 16% growth in operating profit over the next two years.

Groww

Jefferies has maintained a Buy rating on Groww with a target price of Rs 230, indicating an upside potential of about 18% from current levels.

For Groww, Jefferies noted that the company is gradually expanding its ecosystem through wealth management services, mutual fund advisory offerings and overseas investment products.

One key initiative is Groww Prime, which aims to monetise mutual fund assets currently held on the platform.

Jefferies estimates that if a portion of these assets migrate to advisory-led solutions, it could create a meaningful earnings contribution over time.

The brokerage also sees potential in “W by Groww”, a platform targeting affluent investors seeking a wider range of wealth products.

Another area attracting attention is international investing. According to the report, Groww has received approval to offer United States stock investing through GIFT City.

Jefferies believes that wealth management, advisory services and overseas investing could become important earnings drivers over the next few years.

The brokerage added that Groww is “well-placed to benefit from the shift in household savings from yield-based products to equity-linked products.”

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Emcure Pharma

Jefferies has reiterated its Buy rating on Emcure Pharmaceuticals with a target price of Rs 2,100, which suggests an upside potential of nearly 18% from the current market price.

Jefferies also remains positive on Emcure Pharmaceuticals. The report noted that the company expects low-to-mid-teen revenue growth in FY27 along with margin expansion of 75 to 100 basis points.

Further, it highlighted several growth levers in India, including a differentiated product pipeline, portfolio expansion through in-licensing and growth in newer segments such as consumer healthcare and dermatology.

Jefferies noted that “Emcure has identified multiple growth levers in India.”

The brokerage also expects international operations to play a larger role in future growth. Europe, Canada and other overseas markets are expected to benefit from a steady pipeline of generic and specialty products.

Jefferies believes the company can deliver around 20% earnings compound annual growth over FY26-FY29.

Disclaimer: The investment ratings and target prices mentioned in this article are sourced from a third-party brokerage report and do not constitute an offer, solicitation, or personal recommendation to buy or sell any financial instruments. Investing in equities, mutual funds, and pharmaceutical securities involves market risks, while international investing via platforms like GIFT City carries additional currency and regulatory considerations. Readers are advised to conduct their own research and consult a SEBI-registered investment advisor before making any financial decisions. This disclaimer has been generated using AI to support user well-being and responsible content consumption.