Global brokerage firm Jefferies has maintained a bullish stance on three stocks across housing finance and cement sectors. In its latest note, the brokerage has reiterated a ‘Buy’ rating on Can Fin Homes, JK Cement, and UltraTech Cement, projecting upside potential of up to 18% from current levels on one of the stocks.
Jefferies has maintained a Buy rating on all three stocks. Let’s take a look at the rationale behind these calls and what is fueling the optimism –
UltraTech Cement
Among the three, UltraTech Cement offers the highest return potential at 18%, with Jefferies increasing its price target to Rs 14,700 from Rs 14,000. The optimism is backed by a 46% YoY jump in Q1 EBITDA, supported by approx. 10% volume growth and a solid uptick in unit EBITDA.
Management commentary also remains upbeat, with the company witnessing month-on-month price uptick in July, indicating easing of competitive pressure compared to last year.
Jefferies added, “Despite an inline quarter, we raise EBITDA estimates by 1-2% to incorporate stronger pricing, offset by slightly lower volume estimates.”
UltraTech commissioned 3.5 MTPA of capacity in Q1 and plans to add 14-15 MTPA annually through FY26 and FY27, taking its total India capacity to a massive 212 MTPA by FY27-end.
JK Cement
Jefferies has also given a ‘Buy’ to another cement play, JK Cement, raising the target from to Rs 7,370 to Rs 5,925, citing consistent volume growth, margin discipline, and capacity expansion as key triggers.
The brokerage said, “JK Cement has been delivering consistent industry-leading volume growth, backed by robust EBITDA performance and disciplined cost control.”
Jefferies also highlighted that the company is targeting green power usage of approx. 60% by FY26-end, further strengthening its ESG credentials.
Cost savings are expected to stay in focus with a target of Rs 150-200 per tonne including Rs 40-50 per ton in FY26. Post a strong Q1 beat, Jefferies raised EBITDA estimates by around 4% and reaffirmed JK Cement as its “top mid-cap pick in the cement space.”
Can Fin Homes
Jefferies has raised the target price for Can Fin Homes to Rs 950 from Rs 900, implying an upside potential of 16%.
The brokerage notes that the company’s Q1FY26 PAT of Rs 2.2 billion (up 12% YoY) was in line with expectations, despite higher opex and provisions being offset by lower tax outgo.
One of the key positives was the improvement in NIMs (Net Interest Margins), which are expected to rise further. Jefferies further noted, “NIMs should inch up near term due to faster repricing of liabilities vs. loans.”
The company has cut its new home loan rates (PLR) by 25 bps YTD. With stable asset quality and projected EPS CAGR of 13% between FY26-28, Jefferies believes Can Fin remains attractively priced at 1.7x FY1 book value, and the stock is still trading at a discount to its historical average of 2x.