The markets have been significantly cautious late but select stocks continue to be in focus. Some stocks lose favour due to short-term noise, while others quietly come back into focus on the back of earnings visibility, margin trends, or business changes. International brokerage firm Jefferies has given ‘Buy’ recommendation for three stocks.
The brokerage indicates that some of these stocks offer upside potential of up to 27% in select stocks. The list includes stocks like ICICI Prudential Life Insurance, ICICI Lombard General Insurance and Groww.
Here is a closer look at what is driving Jefferies view on each of these companies –
Jefferies on ICICI Prudential Life Insurance
Jefferies has reiterated a ‘Buy’ rating on ICICI Prudential Life Insurance Company, setting a target price of Rs 820. This implies an upside potential of about 20% from current levels.
According to the brokerage report, the company’s December quarter performance stood out on profitability, even though overall premium growth remained modest.
“For December quarter, ICICI Prudential’s Value of New Business (VNB) of Rs 600 crore (up 19% YoY on lower base) was ahead of estimate as margins of 24% were tad above our estimate,” Jefferies noted.
The brokerage pointed out that while Goods and Services Tax (GST) changes acted as a headwind, the company managed to offset this through better product mix, yield curve benefits and cost control. “While GST was a drag, ICICI Prudential could offset this with better product mix, positive yield curve and cost controls,” the report said.
Jefferies also noted strong growth in specific product segments. Retail protection grew 41% year-on-year, supported by GST relief, while non-linked savings rose 15% due to demand for guaranteed products. However, persistency ratios remained weak. “Persistency trends, especially 13M ratio stayed weak,” the brokerage highlighted, adding that prolonged weakness here could lead to a negative adjustment in embedded value.
Jefferies raised its Value of New Business estimates by 3-4% and expects a 16% compounded annual growth rate between FY26-FY28. “Consistent growth can aid rerating,” the brokerage added.
Jefferies on ICICI Lombard General Insurance
Jefferies has maintained a ‘Buy’ rating on ICICI Lombard General Insurance with a target price of Rs 2,400. This indicated an upside potential of around 27%.
As per the brokerage report, the December quarter results were broadly in line after adjusting for one-off costs linked to labour code changes. “December 2025 quarter EPS, adjusted for one-off cost of Rs 531 million from changes in labour codes, was 4% lower than our estimate,” Jefferies said.
The brokerage highlighted that higher loss ratios, especially in motor insurance, weighed on profitability.
On the positive side, retail health insurance saw strong growth after GST exemptions. “Retail health benefits from GST waiver: December 2025 quarter premium grew by 86% y-y,” Jefferies said, adding that this momentum could continue.
Jefferies believes the stock’s valuation is closely tied to premium growth. The brokerage expects improvement in financial year 2027 due to a benign base, easing competition from public sector insurers, and continued GST tailwinds in health insurance. “Growth recovery could drive re-rating,” the report stated.
Jefferies on Groww
Jefferies has also issued a ‘Buy’ call on Groww, setting a target price of Rs 195. This suggests an upside of about 20%.
According to the brokerage report, Groww’s December quarter numbers exceeded expectations due to strong performance in newer business lines.
“December 2025 quarter revenue/adjusted Profit After Tax (PAT) beat (12%/14%) was led by higher-than-expected commodity & MTF revenues,” Jefferies said.
The brokerage highlighted that new ventures such as commodities, margin funding and wealth management now contribute meaningfully.
However, not all segments showed strong traction. Cash equity orders remained muted and wealth management revenue was lower than earlier run-rates. Despite this, Jefferies remains positive on long-term growth drivers. “We expect revenue/PAT growth of 30/35% over FY26-28,” the brokerage noted.
Conclusion
Jefferies latest ‘Buy’ recommendations focus on companies where earnings visibility, margin trends or business diversification could play a larger role than short-term market swings.