Jefferies has put out fresh notes across sectors, with three names drawing attention on expected returns over the next year. The calls, based on management interactions, regulatory developments and a consumer survey, point to earnings visibility, improving balance sheets and scope for gains from current levels. Airports, digital broking and a diversified lender all feature in the list, each backed by detailed ground inputs.
Jefferies on GMR Airports Infrastructure: ‘Buy’
Jefferies has maintained a ‘Buy’ rating on GMR Airports with a price target of Rs 125, implying a 39% upside.
The brokerage’s note follows a management interaction at the Jefferies Asia Forum. It points to stable domestic passenger traffic even as international routes face pressure linked to Middle East tensions. Delhi airport carries higher exposure to international routes compared to Hyderabad, which cushions the overall impact.
Jefferies said non-aeronautical revenue remains a key growth driver, with management targeting mid-teens expansion supported by premium offerings and better utilisation of terminal space. The report also tracks progress across assets including Goa and Bhogapuram, where early commissioning is expected to support traffic ramp-up.
On capital allocation, the brokerage notes that Hyderabad airport expansion is planned from financial year 2029 with an estimated capex of Rs 14,000-15,000 crore. Balance sheet repair remains central, with refinancing efforts already bringing down borrowing costs.
“Mgmt remains focused on accelerating non-aero revenue growth, targeting mid-teens over the medium term, supported by faster growth in int’l traffic and ongoing trend of premiumisation.”
Jefferies adds that improving cash flows at key assets such as Hyderabad and Delhi should support deleveraging over time, with net debt to earnings expected to trend lower towards 3-3.5 times.
Jefferies on Groww: ‘Buy’
Jefferies has reiterated a ‘Buy’ rating on Groww with a price target of Rs195, indicating a 21% upside.
The call is anchored in a detailed consumer survey of 500 users across India, which gives a closer look at how retail traders pick platforms and how behaviour is changing.
The brokerage finds that ease of use and access to mutual funds remain the biggest draw for Groww, outweighing pricing factors such as lower margin trading facility charges offered by rivals. Customer stickiness also stands out, with users less inclined to switch platforms even if costs rise.
Another takeaway is the growing acceptance of paid advisory services. Around 80% of respondents said they are willing to pay for advice, which supports the company’s push into wealth offerings through Groww Prime.
“Ease of use and mutual funds act as bigger hooks for GROWW as compared to other brokers, while lower MTF charges have limited impact on user selection.”
Jefferies also notes that trading activity remains firm despite recent market weakness. While intra-day volumes have softened, other segments including derivatives and delivery trades continue to see traction.
The brokerage has raised its financial year 2026 earnings per share estimate by 4% after factoring in higher options activity, though it expects volatility-led gains to moderate over time. It continues to factor in strong earnings growth, with projections indicating a 33% compound annual growth rate over financial years 2026 to 2028.
Jefferies on Manappuram Finance: ‘Hold’
Jefferies has a ‘Hold’ rating on Manappuram Finance with a price target of Rs 285, suggesting an 11% upside.
The update comes after the Reserve Bank of India cleared Bain Capital’s proposal to acquire a stake and joint control in the company. The investment, pegged at Rs4,385 crore, will be executed through a mix of equity and warrants, with the possibility of Bain holding up to 41.7% depending on open offer subscription.
The brokerage notes that the capital infusion is expected to strengthen the balance sheet and support growth, although near-term earnings dilution is likely. It estimates an 8-9% dilution in earnings per share over FY27 and 2028, while book value could see a modest uplift.
Jefferies also points out that margins may be nearing a bottom, but a rerating would depend on execution under the new management structure. The timeline for strategic clarity could see some delay, given the current absence of the incoming chief executive.
“RBI’s approval clears the path for Bain Capital’s proposed acquisition of stake and joint control in MGFL, enabling the capital infusion and board reconstitution.”
The brokerage adds that while valuations appear reasonable, stronger visibility on franchise improvement remains key before turning constructive on the stock.
Conclusion
Jefferies’ latest research spans three distinct segments, each at a different stage. GMR Airports Infrastructure is tied to traffic recovery and improving cash flows. Groww is benefiting from user behaviour and expanding product offerings. Manappuram Finance is in the middle of a transition, with fresh capital and management changes in play.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.