Global brokerage firm Jefferies has turned bullish on four stocks across sectors from oil and gas to hospitality. The brokerage forecasts potential gains of up to 54%.
According to the brokerage, each of these companies is backed by strong fundamentals, sectoral tailwinds, and a clear growth path over the next few years.
Let’s take a look at each stock, the growth triggers, and why Jefferies is optimistic about their upside potential.
ONGC
Oil & Natural Gas Corporation (ONGC) gets Jefferies most bullish call among the four. The brokerage has given this company a “Buy” rating with a target price of Rs 233.60, which implies a 54% upside.
The brokerage highlighted in its report that ONGC’s Q1 standalone EBITDA stood at Rs 187 billion, in line with estimates, while consolidated EBITDA jumped 18% year-on-year on the back of strong performance by HPCL.
“The miss on PAT was largely due to lower-than-expected other income,” the report added.
Even with a slight dip in crude and gas production compared to the last two quarters, Jefferies sees ONGC benefiting from upcoming production growth, especially from the KG Basin and Mumbai High projects.
“With oil prices stable and reforms possible, the company is well-positioned for earnings recovery,” Jefferies noted, adding that the valuation gap offers significant re-rating potential.
IHCL
Jefferies has given a “Buy” rating to Hospitality giant Indian Hotels Company (IHCL), with a target price of Rs 960. This indicates a 29% upside potential.
According to Jefferies, the Indian hospitality sector is poised for sustained growth, driven by increased travel demand and limited supply expansion. “We expect 8-9% CAGR in room rates and RevPAR for existing properties, with new businesses adding to growth,” the report stated.
Furthermore, the brokerage added that IHCL could touch Rs 1,150 per share, translating to a 54% upside if economic momentum boosts both holiday and business travel. “The premium segment remains strong, and the mid-scale expansion positions IHCL for balanced, long-term growth,” Jefferies said.
Belrise Industries
In the auto components space, Belrise Industries has caught Jefferies attention, with a target price of Rs 160, a 19% potential upside from current market levels.
According to Jefferies, the company is riding on multiple tailwinds such as rising two-wheeler demand, industry premiumisation, growing content-per-vehicle, and expansion into four-wheelers and exports.
“We expect 12% EBITDA and 18% EPS CAGR over FY25-28, supported by deleveraging,” the brokerage said.
Despite a 34% rally since early July, Jefferies believes valuations are still attractive. “Most peers are trading at higher PEG ratios; Belrise offers room for further multiple expansion,” it added.
Aavas Financiers
Housing finance player Aavas Financiers remains a “Buy” for Jefferies, with a revised target price of Rs 2,175. This implies a 27% upside from current levels.
The brokerage notes that Q1FY26 profit after tax grew 10% year-on-year to Rs 1.4 billion, though it came in slightly below expectations due to a dip in net interest income and higher provisions.
According to the brokerage, the short-term slowdown in disbursements is linked to changes in recognition policies and should normalise from the second quarter onward. “Spreads rose 22 basis points quarter-on-quarter and should improve further on easing rates,” Jefferies said, pointing to improving margins.
They remain positive on the long term outlook, projecting 18% EPS CAGR over FY25-28, alongside a gradual improvement in return on equity from 14% to 15% by FY28. “Aavas is trading at a discount to peers, offering a strong entry point,” the note added.