The global brokerage firm, Jefferies has recommended Buy on four stocks across different sectors with potential upside of up to 22% from current market levels. According to the brokerage report, these stocks are expected to benefit from improving fundamentals, business moves, and regulatory tailwinds.
Jefferies on Paytm
Jefferies has maintained a ‘Buy’ rating on Paytm, setting a target price of Rs 1,420. This implies an upside potential of 21% from its current levels.
According to the brokerage report, “We raise FY27-28 EBITDA ests by 9-14% led by lower opex & maintain Buy with a revised price target of Rs 1,420.”
The report added, “We believe Paytm faces low impact from recent action to bar online gaming platforms and rent payments as it had either discontinued the offering/ had negligible contribution.”
Additionally, the company’s recent postpaid offering on UPI, in partnership with Suryoday SFB, could provide approximately 7% upside to the FY27 EBITDA estimates. Jefferies noted that EBITDA is expected to rise from a loss of Rs 1,500 crore in FY25 to a profit of Rs 500 crore in FY26 and Rs 1,200 crore in FY27, supporting the Buy call.
Jefferies on Axis Bank
Axis Bank is another top pick from Jefferies. The brokerage has set a target price of Rs 1,370 and a potential 21% upside.
According to the brokerage, “Our interactions with management at sidelines of the forum indicated that Axis can see pick-up in deposit growth aided by normalisation of retail-deposit outflows/ government balances and easing aggression in deposit rates.”
The report highlighted that credit quality is stabilising in unsecured personal and SME loans, and the drag from technical downgrades is likely to moderate over the next few quarters.
Jefferies further noted, “Overall, operating performance of the bank should improve over next few qtrs. Maintain BUY call.” Valuations remain attractive at 1.5x one-year forward adjusted PB, offering potential rerating opportunities.
Jefferies on IndiGo
In the list of aviation sector stocks, Jefferies has rated InterGlobe Aviation (IndiGo) as a ‘Buy’. The brokerage house has set a target price of Rs 6,925 and an upside potential of 22%.
According to the report, “the management reiterated early double capacity growth guidance for FY26. The management said Capacity growth is a confluence of new Aircraft arrivals, redeliveries, damp leases taken by Co, and international capacity mix.”
IndiGo has also received regulatory approval from DGCA to extend its wet lease agreement with Turkish Airlines until February 2026. The brokerage highlighted that the airline is making progress toward meeting ESG goals, especially in reducing carbon emissions through its fuel-efficient Neo fleet and operational efficiencies such as optimised flight planning and lightweight equipment.
Jefferies on Patanjali foods
Patanjali Foods has been given a ‘Buy’ rating by Jefferies with a target price of Rs 695, translating to an upside of 16%. The brokerage noted, “Most large categories within PFL’s portfolio have seen a GST rate cut recently. This includes ghee, biscuits, toothpaste, ayurvedic supplements, soya chunks, soaps, face wash etc. PFL expects this to drive demand and volume growth for these categories, as it cuts prices.”
While there may be near-term headwinds from trade de-stocking, the brokerage expects a gradual recovery through FY26. “After a weak Q1, the company expects a gradual recovery through FY26 as headwinds in the edible oil and food business normalise,” the report noted. The upcoming festive season is likely to further boost consumption across key product segments.