Global brokerage Jefferies is turning positive on a select set of Indian stocks across sectors such as energy, consumer, hotels and financial services. According to Jefferies, these companies could deliver upside of up to 27% from current levels as key business triggers start playing out over the coming quarters.
Let’s take a look at the stocks where Jefferies sees value emerging, and the reasoning behind each call –
Jefferies on Reliance Industries
Jefferies has reiterated a ‘Buy’ call on Reliance Industries. The brokerage has set a target price of Rs 1,820, implying an upside of about 27%.
As per the brokerage report, the stock has underperformed the Nifty index by nearly 7% year-to-date. This is largely due to weak performance in the retail business during the December 2025 quarter.
The brokerage pointed out that the current market price is factoring in an enterprise value of only about $40 billion for the retail and FMCG businesses combined, which it sees as overly pessimistic. This is significantly lower than earlier private equity valuations.
According to the brokerage report, progress on Jio’s initial public offering, a possible tariff hike, recovery in retail growth and value discovery in the consumer business are key triggers that could support a rerating.
Jefferies on Varun Beverages
For Varun Beverages, Jefferies has maintained its ‘Buy’ rating with a target price of Rs 550. This implies an upside of around 18%. The brokerage noted that the recent performance was mixed, with volume growth but weaker realisations in India.
Management attributed the softness to higher discounting in the market, which raised some competitive concerns.
However, Jefferies in its report noted that the company remains confident of margin stability and expects a better performance if the upcoming summer season is normal.
The brokerage retained its positive view despite trimming earnings estimates slightly, stating “Buy retained, lowering EPS estimates.”
Jefferies on Chalet Hotels
Jefferies has also kept a ‘Buy’ rating on Chalet Hotels with a target price of Rs 1,075. This translates to a 26% upside. According to the brokerage report, the company delivered a mild beat in the December quarter.
While the commissioning of a key hotel project at Delhi airport has been delayed due to pollution-related construction bans, Jefferies believes the medium-term outlook remains intact. It said it would “broadly maintain EBITDA estimates and retain ‘Buy’ with target at Rs 1,075.”
Jefferies on Devyani International
Jefferies has upgraded Devyani International to ‘Buy’ with a target price of Rs 145. This translates to a potential upside of 25%.
As per the brokerage report, the recent elevation of Manish Dawar from Chief Financial Officer to Chief Executive Officer is expected to ensure leadership continuity.
Management has also begun shutting loss-making Pizza Hut outlets and does not plan to add net new stores in calendar year 2026. Jefferies said the stock was upgraded “after constant 17% correction in share price from the recent peak with unchanged price target of Rs145.”
Jefferies on ICICI Prudential Asset Management Company
Jefferies remains constructive on brokers, asset managers and exchanges, citing the steady shift of household savings into financial assets. Indian mutual fund assets under management have reached nearly $900 billion. It has initiated coverage on ICICI Prudential Asset Management with a ‘Buy’ rating and a target price of Rs 3,800. This implies upside of 23%
The brokerage expects assets under management and earnings to grow at a healthy pace over the next few years.
Jefferies on HDFC AMC and Nippon AMC
Jefferies has maintained its ‘Buy’ call on HDFC Asset Management Company with a revised target price of Rs 3,130. This indicates that the stock has room to surge 13% from current levels. Nippon Life India Asset Management also has got a ‘Buy’ rating with a target price of Rs 1,060, implying 15% upside.
The brokerage expects assets under management to grow at a 17% compound annual growth rate until FY28. It noted that “ETFs may not cannibalize active equity inflows.”
Conclusion
Taken together, Jefferies stock recommendations are based on the overall earnings performance and stocks that have strong visibility going forward, in terms of order pipeline and revenue outlook.