The markets are in quiet mode after scaling 2025 highs. What are the key stocks that investors must focus on now? Global brokerage firm, Jefferies has turned positive on select Indian stocks and sees upside potential of up to 34% in some of the counters.
The brokerage house maintained ‘Buy’ ratings on Sunteck Realty, Hindustan Unilever, and Colgate-Palmolive. The brokerage highlighted a mix of growth visibility, margin improvement, and steady business fundamentals despite near term challenges.
Let’s take a look at what Jefferies expects from these three stocks –
Jefferies on Hindustan Unilever
Jefferies has also reiterated a Buy rating on Hindustan Unilever with a target price of Rs 3,050. This indicates an upside potential of 18%.
As per the brokerage report, “GST issues will continue in October too, with normalisation from early November – the channel will, however, take time to stock up, based on historical trends.”
Jefferies expects HUL’s performance to improve in the second half of the fiscal year. “From a medium-term perspective, management highlighted aggressive focus on driving volume-led growth. H2 performance should improve,” the report said.
Margins are projected to remain steady at 22–23%, while the ice-cream demerger could add another 50–60 basis points. The brokerage added that if raw material costs stay stable, product pricing growth should be low single digit (LSD).
“We cut our EPS estimates by 2–3% to factor in the impact of GST disruption as well as build gradual recovery ahead, but rollover results in a revised PT at Rs 3,050,” Jefferies noted, maintaining a positive outlook on the FMCG major.
Jefferies on Colgate-Palmolive
Colgate-Palmolive (India) is another stock on Jefferies’ radar, with the brokerage maintaining a Buy call and a target price of Rs 2,700. This suggests a 17% potential upside.
According to the report, Colgate had a decline across revenue, EBITDA, and earnings in the second quarter of FY26 due to the temporary impact of the GST rate cut, which led to destocking across the supply chain.
Jefferies noted, “Colgate reported yet another decline in revenues, EBITDA, and earnings during Q2FY26. Management blamed transitory issues related to GST new rate which resulted in destocking across the value chain, along with a high base.”
The brokerage believes the stock could remain range-bound in the short term but offers potential upside as growth revives. “The stock needs growth pick-up, or else it will likely remain range-bound,” Jefferies said.
Jefferies on Sunteck Realty
Sunteck Realty remains a preferred pick in the real estate space. Jefferies has set a target price of Rs 575 per share. This implies a 34% upside from current levels.
The brokerage said, “Sunteck reported a net profit of Rs 49 crore, +41% YoY, broadly in line with estimates.”
The company also saw a 24% year-on-year rise in customer collections to Rs 330 crore.
Jefferies noted that as construction gains pace, particularly for the Sunteck Beach Residences (SBR) and Sky Park projects, along with the official launch of the Napean Sea Road project, earnings are likely to accelerate. Operational cash flow stood positive at Rs 150 crore, a 65% YoY improvement.
The report added, “We maintain our pre-sales estimates, with sales ex-Dubai expected to rise by ~30% to Rs 3,300 crore in FY26.”