The tone in Indian equities may have turned cautious but Jefferies has identified some clear winners. The brokerage has picked a set of three ‘Buy’ recommendations across sectors from financials and utilities to chemicals and consumer names each backed by strong earnings visibility and improving return profiles.
The brokerage sees up to 22% upside potential in these picks, signalling continued faith in India’s domestic growth story even as global sentiment remains uncertain.
Jefferies on Aditya Birla Capital: ‘Buy’
Jefferies maintained a Buy rating on Aditya Birla Capital with a revised target price of Rs 380, indicating a 22% upside from the current Rs 311. The brokerage said consolidated September-quarter profit was broadly in line with estimates.
The company’s lending book grew 22% year-on-year, led by strong traction in personal and business loans. Gross NPAs declined 60 basis points sequentially to 1.7%, aided by recoveries and an asset sale to an ARC.
Jefferies expects EPS to rise 21% annually through FY28 and ROE to reach 16%.
Jefferies on Bandhan Bank: ‘Buy’
Jefferies stayed constructive on Bandhan Bank with a price target of Rs 200, offering a 17% upside from Rs 170. Despite a weak quarter net profit fell to Rs 100 crore, down 88% year-on-year the brokerage sees gradual recovery ahead.
Slippages equalled 5% of loans, though SMA-1 and SMA-2 categories fell 9% sequentially, suggesting stabilising asset quality.
Jefferies expects ROA to recover to 1.4% and ROE to 12% by FY27, supported by a healthier loan mix and normalised credit costs.
Jefferies on Nippon Life AMC: ‘Buy’
Nippon Life India Asset Management continues to earn Jefferies’ confidence, with a Buy call and an upgraded price target of Rs 1,020, up from Rs 930, implying a 17% upside.
Jefferies forecasts a 23% CAGR in overall AUM and 20% CAGR in operating profit through FY28, valuing the company at 32x Dec-27 earnings. “We tweak estimates by 1–2% to adjust for lower other income and slower yield decay,” it said.