Jefferies has issued a series of bullish reports on major Indian brands, projecting a surge in market activity that could lead to gains of up to 44% for specific stocks.
The global firm indicates that despite recent domestic hurdles, the long-term outlook for eyewear retail, and private banking remains robust due to improving profit margins and aggressive customer acquisition.
This analysis suggests that leading players in these sectors are well-positioned to capitalise on the expanding Indian consumer market over the next few years.
Jefferies on IDFC First Bank: ‘Buy’
Jefferies maintains a ‘Buy’ rating on IDFC First Bank with a target price of Rs 100, suggesting a potential gain of 44% over its current price of Rs 69.60.
The brokerage firm notes that while a recent fraud incident involving Haryana State Government accounts at a single branch may impact fourth-quarter results, the bank remains well-capitalized.
The loss is estimated between Rs 490 Crore and Rs 590 Crore, but the firm believes the bank’s core profitability remains on an upward trajectory.
The analysis points toward improving net interest margins and a consistent decline in credit costs as key drivers for the bank’s future valuation. Jefferies values the financial institution at 1.6x its estimated adjusted book value for March 2028, citing a positive outlook for overall asset quality.
The firm expects the bank to navigate the temporary drag of the fraud issue while benefiting from the strengthening domestic credit environment.
According to the report, “Bank expects a strong 4Q with better NIM and lower credit cost – though the fraud issue can act as drag.”
Jefferies on Lenskart: ‘Buy’
Jefferies has reiterated a positive rating for Lenskart Solutions with a target price of Rs 575, which represents an 18% upside from the current price of Rs 489.10.
Even though the company is a leader in tech-driven eyewear retail, Jefferies points out that it currently holds only a 5% share of the total Indian market. The brokerage firm expects the integrated business model to generate a compound annual growth rate of over 50% in operating profits through the 2028 fiscal year.
The firm believes that the company’s combination of physical stores and digital presence ensures high cost efficiency and a superior experience for the consumer.
The analysts argue that increasing market awareness through eye-testing capacity is more critical than price concerns for future expansion. Furthermore, international operations now account for 40% of total revenue and offer even higher profit margins than the domestic business.
“Growth will remain the priority over ST margin optimisation,” Jefferies notes.
Jefferies on Voltas: ‘Buy’
The global brokerage firm provides a ‘Buy’ rating for Voltas with a target price of Rs 1,815, indicating a potential increase of 17% from its current price of Rs 1,545.25.
Jefferies observes that the company is successfully maintaining its dominant position in the Indian room air conditioner market as more households purchase cooling products. The firm anticipates that the cooling products division will see a revenue compound annual growth rate of 18% through the 2028 fiscal year.
Jefferies also expects a gradual recovery in the domestic investment cycle to benefit the company’s engineering project division as order books improve.
The firm notes that sustainable margins are likely to return to this segment as the company focuses on building a localized manufacturing ecosystem. This strategy is intended to reduce the current reliance on imported materials and strengthen the long-term earnings potential of the business.
According to the report, “Maintaining leadership in the AC industry as AC penetration in India increases is key to earnings growth.”
Conclusion
The latest findings from Jefferies suggest a healthy growth path for these Indian brands, driven by scale and better internal controls.
While the firm acknowledges specific sectoral risks such as competition or one-off financial discrepancies, the overall sentiment remains positive regarding their ability to meet rising consumer demand.