The global brokerage house Jefferies has identified three stocks across sectors where it sees meaningful upside potential, going as high as 35% from current levels. As per the brokerage house report, the selected stocks span across technology, housing finance, and insurance with nearly 35% upside in one stock. 

For each of these stocks, the brokerage has given a ‘Buy’ rating. This is backed by key triggers such as acquisitions, improving margins, or strong business momentum.

Let’s take a look at what’s driving optimism around these stocks.

Jefferies on Inventurus Knowledge Solutions (IKS): Big acquisition, bigger ambitions

IKS remains a strong play on growth, especially after its latest acquisition move. Jefferies has given a ‘Buy’ rating to the stock with a target price of Rs 1,825. This translates to an upside potential of about 26%.

A key trigger here is IKS’s acquisition of TruBridge, a US-based healthcare-focused company, for an enterprise value of $557 million. 

As per the brokerage report, “We expect IKS’s acquisition of TruBridge for US$557m to help open a new addressable market, offer an integrated solution, and create crosssell opportunities of US$575 million.”

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This deal is expected to scale up the company’s operations. According to the brokerage report, the acquisition could nearly double IKS’s revenue base and bring in new capabilities. It also gives access to electronic health record (EHR) platforms and revenue cycle management (RCM) tools, expanding its service offerings.

At the same time, there are trade-offs. The brokerage noted, “Although revenue growth may moderate, PAT growth is likely to rise as cost synergies are realised.”

Another key factor will be execution. According to the brokerage report, “Successful integration and synergies will be key.” The focus will shift towards merging operations and extracting value from the acquisition, which also introduces some balance sheet risks due to added debt.

The brokerage house has maintained a positive stance to the stock, noting, “We like the strategic intent and reiterate ‘Buy’.”

Jefferies on Can Fin Homes: Steady growth with improving metrics

Can Fin Homes has also made it to Jefferies’ list with a ‘Buy’ rating. The brokerage has set a target price of Rs 1,140. This indicates an upside of around 25%.

According to the brokerage report, the company delivered a strong performance in the March quarter. Adjusted profit after tax (PAT) grew 27% year-on-year to Rs 2.9 billion. While net interest income (NII) was slightly below estimates, lower operating expenses and provisions.

The company’s growth continues to be driven by loan disbursements and asset expansion. According to the brokerage report, assets under management (AUM) grew 10% year-on-year, supported by a 32% jump in disbursements. Furthermore, the housing loans also saw a firm traction.

however Margins of the company on the other hand showed some pressure. Net interest margin (NIM) declined slightly due to a drop in yields.

Asset quality remains a key positive. According to the Jefferies report, gross stage 3 (GS3) and stage 2 (GS2) loans declined, while credit costs remained very low at just 1 basis point, far below expectations.

Jefferies on SBI Life Insurance: Growth outlook offsets near-term concerns

Another stock Jefferies has given a ‘Buy’ rating is SBI Life Insurance, a life insurance sector stock. The brokerage sees an upside potential of around 35%. Furthermore, it has set a target price of Rs 2,550.

According to the Jefferies report, the company’s March quarter performance was slightly below expectations, particularly on value of new business (VNB), which measures profitability from new policies. 

As noted in the brokerage house report, “March 2026 quarter. VNB 4%/6% below FactSet/JEFe, due to lower margin.”

The brokerage remains optimistic about future growth. It expects margins to improve and sales momentum to continue. 

As per the brokerage report, “we continue to expect: (i) positive surprise to FY27e VNB margin guidance of 27-28% (JEFe: 28.3%) and (ii) APE momentum in SBI to sustain in FY27.”

The company’s agency channel has been a strong contributor. According to the brokerage report, “March 2026 quarter agency APE grew by 28% y-y.” The brokerage house also noted stable productivity and strong return on embedded value (RoEV), which stood at 19%.

However, there are some concerns. Margins came in weaker than expected, and there was a slight decline in sales through the State Bank of India (SBI) channel. There have also been discussions around the possibility of “open architecture” in banks, which could allow multiple insurers to sell through bank branches.

On this, the brokerage noted, “we see the likelihood of SBI moving to open architecture as low.” It noted that the operational challenges and regulatory signals as reasons why such a shift may not happen soon.

Furthermore, Jefferies in its report noted that the company’s cost efficiency, strong distribution network, and consistent growth outlook continue to support its valuation.

Conclusion

Across these three stocks, Jefferies is betting on different growth drivers -acquisition-led expansion for IKS, steady lending growth for Can Fin Homes, and long-term insurance demand for SBI Life.

Disclaimer: The investment analysis and price targets mentioned in this report are based on a research note by Jefferies and are for informational purposes only. These do not constitute an offer, solicitation, or specific investment advice by this publication. Given the potential market volatility and specific risks associated with individual equities, readers are strongly advised to consult with a SEBI-registered investment advisor before making any financial decisions.

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