The brokerage firm Jefferies has turned bullish on select stocks, handing out Buy ratings across key sectors. This includes banking, energy, and renewables.
As per the brokerage report, these companies are positioned for growth in the coming quarters. Also, these companies are backed by strong fundamentals, capacity expansions, and steady earnings visibility.
Let’s take a look at Jefferies latest picks and what is driving its optimism.
Jefferies on Reliance Industries
Jefferies remains upbeat on Reliance Industries, retaining its Buy call with a target price of Rs 1,785. This translates to a 30% upside from current levels. The brokerage expects RIL’s foray into renewable energy and battery storage to significantly boost earnings in the coming years.
As per the brokerage report, “RIL’s battery foray is part of its Net Carbon Zero 2035 target. BESS addresses challenges of low capture rates, curtailment, and non-solar peak load as RE share of generation rises.”
Jefferies estimates that India could see 268 GWh of energy storage demand by 2030, creating a US dollar 21 billion market opportunity. The brokerage incorporated the value of RIL’s BESS manufacturing and savings from renewable-backed captive power, adding nearly US dollar 10 billion (Rs 63/share) to its sum-of-the-parts valuation.
Assuming RIL transitions all captive power to renewable energy by FY28, Jefferies said, “We expect Rs 47 billion of annual savings, valuing this at 10x EV/EBITDA, we arrive at Rs 470 billion i.e., Rs 35/share.”
It further added, “RIL’s BESS manufacturing business is worth US$4.5 billion; we revise our PT to Rs 1,785 on rollover to September and maintain Buy.”
Jefferies on JSW Energy
Jefferies has reiterated a Buy on JSW Energy with a target price of Rs 700. This indicates a 29% potential upside. The brokerage believes the company’s aggressive capacity addition plan will be a key earnings catalyst in the near term.
As per the brokerage report, JSW Energy’s September quarter EBITDA beat estimates by 9%, “driven by better utilisation from KSK’s 1.8 GW thermal asset and O2’s 1.8 GW renewable energy assets.”
The company added 443 MW capacity during the quarter, ending at 13.2 GW, and management is confident of adding another 1.8 GW in the second half of FY26, Jefferies noted. “We believe JSW Energy should deliver 42% EBITDA CAGR in FY25–28E. Maintain Buy with 29% upside to our PT of Rs 700,” it added.
“Capacity addition updates, recovery in annual power demand and stable merchant prices are triggers ahead for JSWE,” said the brokerage, while cautioning that execution delays and aggressive bidding remain key risks.
Jefferies on HDFC Bank
Jefferies has reaffirmed its Buy rating on HDFC Bank with a target price of Rs 1,240. This implies a 22% upside. The brokerage believes that while the bank’s near-term NIM pressure persists, steady loan growth and improving asset quality could support performance going forward.
According to the brokerage report, HDFC Bank’s September quarter results were “in line with expectations,” with strong 4.5% QoQ loan growth and a sharp decline in credit costs. The report noted that core credit cost decreased sharply from 56bps to 28bps, and non-performing loans fell due to lower slippage and a lumpy upgrade.
Jefferies expects NIMs to gradually improve from Q3FY26 onwards. “Given superior asset quality and improving core earnings, we reckon the stock shall outperform,” it stated.
Jefferies on IndusInd Bank
Jefferies has maintained a Buy rating on IndusInd Bank, with a target price of Rs 920. This implies a 22% upside from current levels. The brokerage expects the lender’s performance to stabilise in FY27 after a period of weak earnings.
According to the brokerage report, IndusInd Bank reported a loss of Rs 44 billion in the September quarter due to a softer topline and elevated credit costs. “NII and fees were down 18% and 27% YoY due to a 9% fall in loans, especially in the MFI segment,” it added.
The report noted that core slippages remained high, though the bank wrote off some NPLs, resulting in credit cost spiking to 3.1% of average loans. Jefferies added that while the second half of FY26 may remain subdued, “trends can normalise from FY27.”
“Valuations are reasonable at 0.9x 12-month forward adjusted PB, so we maintain our ‘Buy’ call with a price target of Rs 920 based on 1x Dec-27E adjusted PB,” the brokerage stated.