8 ‘Buy’ recommendation by Jefferies with 16% to 41% upside potential

Across these reports, Jefferies points to stronger earnings delivery, improving demand, expanding margins, new capacity, business execution and long-term growth opportunities as the key reasons behind its positive stance.

Jefferies on Phoenix Mills: ‘Buy’

Jefferies maintains a ‘Buy’ rating on Phoenix Mills with a target price of Rs 2,215, implying an upside of 16%.

The brokerage says Phoenix Mills delivered another steady quarter, supported by robust consumption across its shopping mall portfolio and continued growth in lease rentals. Mall consumption increased 32% year-on-year during the June quarter to Rs 4,730 crore, marking a 15-quarter high. Retail lease income grew 17% year-on-year, while revenue and earnings before interest, taxes, depreciation and amortisation rose 13% and 14%, respectively. Pre-exceptional net profit increased 23% year-on-year to Rs 300 crore, broadly matching Jefferies’ estimates.

Jefferies says the company’s expansion pipeline continues to strengthen its long-term earnings profile. New malls in Kolkata and Surat remain on schedule, while additional retail space at Bengaluru and Mumbai is expected to come on stream over the next two years. Office leasing is also gathering pace, with three recently completed projects beginning to contribute meaningfully to rental income.

The brokerage expects the combination of retail and office expansion to support healthy lease income growth over the next few years. “Combination of retail and office expansions should still drive a long term high-teens lease income CAGR for Phoenix,” Jefferies says.

Jefferies on Bajaj Finance: ‘Buy’

Jefferies maintains a ‘Buy’ rating on Bajaj Finance with a target price of Rs 1,280, implying an upside of 21%.

The brokerage says the lender delivered another strong operating performance during the June quarter, supported by healthy loan growth, stable asset quality and continued customer additions. While funding costs remain elevated, Jefferies believes the company continues to execute well across its lending franchises and is well positioned to sustain earnings growth.

Jefferies notes that management continues to focus on balancing growth with profitability, while maintaining disciplined underwriting standards. The brokerage expects operating leverage, improving product mix and steady expansion across consumer, commercial and rural lending businesses to support earnings over the medium term.

“We continue to view Bajaj Finance as one of the best positioned financial companies to deliver consistent growth with healthy profitability,” Jefferies says.

Jefferies on Radico Khaitan: ‘Buy’

Jefferies maintains a ‘Buy’ rating on Radico Khaitan with a target price of Rs 5,200, implying an upside of 21%.

The brokerage says the company’s premiumisation strategy continues to deliver strong results, with premium brands driving both revenue growth and margin expansion. It expects Radico Khaitan to sustain healthy earnings growth as premium products contribute an increasing share of overall sales.

According to Jefferies, the company is entering the next phase of growth with a stronger brand portfolio, wider distribution reach and improving operating leverage. Premium products, particularly in the vodka category, continue to gain market share, while the company’s innovation pipeline remains active.

“We expect revenue to grow at around 15% compound annual growth rate over the next few years, supported by premiumisation and healthy earnings growth,” Jefferies says.

Jefferies on Asian Paints: ‘Buy’

Jefferies maintains a ‘Buy’ rating on Asian Paints with a target price of Rs 3,350, implying an upside of 22%.

The brokerage says Asian Paints reported one of its strongest quarterly performances in recent years. Consolidated revenue increased 18% year-on-year, the fastest pace in 15 quarters, while earnings before interest, taxes, depreciation and amortisation grew about 33%. Gross margin expanded to 43.6%, helped by lower-cost inventory, sourcing efficiencies, product mix and price increases.

Jefferies says decorative paints continued to perform well despite intense competition, with India decorative volumes growing 9% year-on-year and value growth reaching 17%. International operations also posted strong results, delivering 27% growth alongside margin expansion.

The brokerage believes Asian Paints remains well placed to defend its leadership position despite heightened competition. “We believe that Asian Paints remains a strong play in the Indian paint industry,” Jefferies says. It adds, “We expect a gradual recovery in earnings starting FY26 for Asian Paints, which we rate as Buy.”

Jefferies on ITC: ‘Buy’

Jefferies maintains a ‘Buy’ rating on ITC with a target price of Rs 350, implying an upside of 23%.

The brokerage says ITC’s June quarter performance reinforces its confidence in the company’s earnings profile despite near-term pressure in some businesses. Cigarette volumes remained resilient, while the hotels business continued to benefit from healthy demand. Jefferies also expects the fast-moving consumer goods business to improve gradually as input cost pressures ease and investments made over the past few years begin to contribute more meaningfully to profitability.

Jefferies says ITC’s diversified business model continues to provide stability even when individual segments face temporary challenges. It believes improving profitability across the non-cigarette portfolio, coupled with healthy cash generation and consistent shareholder returns, supports the company’s valuation.

“We continue to see ITC as an attractive combination of earnings visibility, cash generation and improving return profile,” Jefferies says.

Jefferies on Mankind Pharma: ‘Buy’

Jefferies maintains a ‘Buy’ rating on Mankind Pharma with a target price of Rs 3,220, implying an upside of 24%.

The brokerage says Mankind Pharma continues to strengthen its domestic formulations business while integrating Bharat Serums and Vaccines. According to Jefferies, the acquisition broadens the company’s presence in high-value therapeutic segments and provides additional opportunities to improve its product mix over the medium term.

The brokerage also says Mankind continues to gain from its strong franchise in chronic therapies, expanding distribution network and disciplined execution. It expects these factors to support healthy earnings growth over the coming years as synergies from the Bharat Serums and Vaccines acquisition become more visible.

“We continue to like Mankind Pharma given its strong domestic franchise and the long-term benefits from the Bharat Serums integration,” Jefferies says.

Jefferies on Data Patterns: ‘Buy’

Jefferies maintains a ‘Buy’ rating on Data Patterns (India) with a target price of Rs 5,545, implying an upside of 24%.

The brokerage says Data Patterns remains well placed to benefit from sustained defence spending, higher indigenous procurement and an expanding order pipeline. It expects execution to improve further as manufacturing capacity increases and recently secured projects move into the revenue recognition phase.

Jefferies also points to the company’s diversified product portfolio across defence electronics and aerospace systems. In its view, a healthy order book, continued investment in research and development and increasing localisation of defence procurement provide long-term support for revenue and earnings growth.

“We remain constructive on Data Patterns given its strong order pipeline and favourable long-term defence spending outlook,” Jefferies says.

Jefferies on Devyani International: ‘Buy’

Jefferies maintains a ‘Buy’ rating on Devyani International with a target price of Rs 160, implying an upside of 41%, the highest among the brokerage’s positive recommendations in this set of reports.

The brokerage says Devyani International’s operating performance continues to improve across its quick-service restaurant portfolio. It expects store additions, improving same-store sales growth and operating leverage to support earnings growth over the next few years. Jefferies also believes the integration of newer brands and disciplined expansion will strengthen the company’s long-term growth profile.

According to the brokerage, the KFC business continues to remain the primary earnings driver, while Pizza Hut and other brands are expected to contribute more meaningfully as demand improves. It also expects margin expansion as scale benefits offset cost pressures.

“We continue to see a long runway for growth supported by store expansion, improving profitability and operating leverage,” Jefferies says.

Conclusion

Jefferies’ latest recommendations span sectors as varied as real estate, financial services, consumer goods, paints, tobacco, pharmaceuticals, defence and quick-service restaurants, yet the brokerage’s positive view rests on company-specific execution rather than a broad market call. Across this group, the brokerage has chosen to reaffirm its conviction only where it believes business fundamentals continue to support higher valuations over the coming months.

Disclaimer

The stock recommendations, target prices, and estimates published above are attributed strictly to foreign brokerage firm Jefferies and do not reflect the views of FinancialExpress.com. This article is published solely for informational and educational purposes and does not constitute financial advice, an offer, or a solicitation to buy or sell any security. Equity investments are subject to market risks, price volatility, and potential loss of principal. Readers are strongly advised to conduct their own independent research and consult a SEBI-registered investment advisor or financial consultant before making any investment decisions.

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