Jefferies has turned constructive on a select set of domestic names in its latest research notes, reaffirming ‘Buy’ ratings on Shriram Finance, HDB Financial Services, Aditya Birla Capital, and JK Cement. The brokerage projected up to 23% upside potential for these stocks, backed by strong earnings visibility, improving credit metrics, and consistent execution.
The global brokerage said non-bank lenders are entering a phase of stable margins and lower credit costs, while building-material companies such as JK Cement are positioned to benefit from ongoing capacity expansion and sustained demand. Jefferies expects all four companies to maintain double-digit earnings growth through FY26, aided by a combination of operating leverage and balance-sheet discipline.
Jefferies on Shriram Finance: ‘Buy’
Jefferies reiterated its Buy call on Shriram Finance with a price target of Rs 880, implying an 18% upside from the current levels.
The NBFC’s September-quarter net profit rose to Rs 2,307 crore, up 11% year-on-year, aided by a positive credit-cost surprise. Assets under management stood at Rs 2.8 lakh crore, growing 16% year-on-year, while disbursements rose 8%.
Jefferies said net interest margin improved to 8.71%, up 9 basis points sequentially, with the benefit of lower funding costs to reflect fully in the second half. “We raise estimates factoring lower credit costs. We expect 20% EPS CAGR and 16–18% ROE over FY26–28,” the report said.
The brokerage values Shriram Finance at 2x FY27 book value, calling it “one of our top NBFC picks” supported by a 20% earnings CAGR and stable 2% credit cost guidance.
Jefferies on HDB Financial Services: ‘Buy’
Jefferies retained its Buy stance on HDB Financial Services with a target price of Rs 900, offering 23% upside from Rs 734.
According to the brokerage’s note on Indian financials, HDB is poised for steady asset growth led by retail demand revival and a broad-based recovery in consumption credit.
“Strong growth outlook and reasonable valuations make HDB a key beneficiary within diversified NBFCs,” Jefferies said. It expects cost of funds to stabilise as deposit markets normalise and growth picks up in the back half of FY26.
Jefferies on Aditya Birla Capital: ‘Buy’
Jefferies continued to maintain a Buy rating on Aditya Birla Capital with a target of Rs 380, representing a 22% upside from Rs 311.
The brokerage noted consolidated profit of Rs 850 crore, up 3% year-on-year, in line with expectations. Gross NPAs improved to 1.7%, while net interest margins rose 9 basis points sequentially.
“The mix shift toward unsecured loans and better housing finance traction support earnings. We see healthy growth and ROE improvement ahead,” the brokerage said.
Jefferies expects EPS growth of 21% annually through FY28, valuing the NBFC at 2x FY27 book value in its sum-of-the-parts framework.
Jefferies on JK Cement: ‘Buy’
Jefferies has reaffirmed its Buy call on JK Cement with a target price of Rs 7,230, implying a 16% upside from Rs 6,214.
The brokerage said Q2FY26 EBITDA of Rs 440 crore was 5% below expectations but up 63% year-on-year, led by 16% volume growth in grey cement. “Despite near-term weakness, JK Cement remains our preferred mid-cap pick,” it said.
JK Cement’s capacity expansion to 40 million tonnes per annum by FY28 remains on track, with new plants at Prayagraj, Hamirpur, and Panna progressing per schedule. Jefferies expects 21% EBITDA CAGR over FY25–28 and values the stock at 19x FY27 EV/EBITDA.
“JK Cement continues to deliver leading organic volume growth among peers,” Jefferies said, indicating its strong footprint in Central and East India and sustained market share gains.