It’s a brand new week for the markets. Investors are going to no doubt watch out for the key levels that the Nifty scales this week. However, if you are looking for stock-specific bets, Jefferies has identified a list of 5 stocks with ‘Buy’ Recommendations.
Here is a detailed analysis of Jefferies’ investment rationale for each stock.
Jefferies on ITC: ‘Buy’
Jefferies reaffirmed its Buy rating on ITC with a price target of Rs 535, signalling 27% upside from Rs 420. The brokerage said cigarette volume momentum remains intact, with growth of about 6% year-on-year, though margins have been compressed by high-cost tobacco.
The brokerage said EBIT growth in cigarettes lagged revenue but added that “the outlook remains strong as demand holds up and premiumisation continues.”
ITC is valued using a sum-of-the-parts framework cigarettes at 23x FY27 earnings, new FMCG at 5x sales, and other segments at 15x earnings. Jefferies said valuation remains “reasonable” and expects steady 7–8% growth in EBIT and FMCG revenue through FY28.
Jefferies on Dabur India: ‘Buy’
Jefferies retained its Buy rating on Dabur India with a target price of Rs 610, implying a 22% upside from Rs 500. The September quarter was broadly in line with expectations, with revenue and EBITDA both up 5% year-on-year.
Channel destocking following GST rate cuts weighed on sales by 3–4%, but management expects a bounce-back in 2H. The brokerage highlighted double-digit growth in oral care and strong mid-single-digit performance across home and personal care categories.
Jefferies projects 10% annual EPS growth and 100 bps margin expansion through FY28, calling Dabur “a key beneficiary of a rural recovery and balanced portfolio execution.”
Jefferies on Navin Fluorine: ‘Buy’
In the chemicals space, Jefferies reiterated its Buy on Navin Fluorine International and raised the target price to Rs 6,635, up from Rs 6,025, implying a 32% upside from Rs 5,009.
The brokerage said all verticals specialty chemicals, CDMO, and high-performance products delivered robust growth.
Jefferies noted that firm contracts in CDMO and spec chem will help utilise the Rs 2,500 crore capex commissioned in recent years. It raised FY26–FY27 EBITDA estimates by 13–14% and expects 44% EPS CAGR through FY28. “We project the strongest earnings growth in our chemical coverage,” Jefferies wrote.
Jefferies on NTPC: ‘Buy’
Jefferies kept a Buy on NTPC with a target of Rs 440, indicating 26% upside from Rs 348. The brokerage said profit for the September quarter was in line with expectations, but management lowered FY26 capacity addition guidance to 9.8 GW from 11.8 GW.
Jefferies noted that this has no material impact on its estimates, as it already factors in 6.4 GW of additions. The report emphasised NTPC’s growing renewable pipeline 8.7 GW operational and 14 GW under construction and reaffirmed its long-term capacity target of 244 GW by 2037.
“Power demand recovery, capacity ramp-up and medium-term double-digit EPS CAGR are re-rating drivers,” Jefferies said. The brokerage values NTPC at 2x FY27 consolidated book, a 13% discount to past upcycle averages.
Jefferies on Swiggy: ‘Buy’
Jefferies initiated coverage on Swiggy with a Buy rating and price target of Rs 500, implying a 19% upside from Rs 419. The brokerage said Swiggy’s food delivery GOV grew 19% year-on-year, while quick commerce doubled, with contribution margins improving 200 basis points quarter-on-quarter.
Although adjusted EBITDA loss narrowed sequentially to about Rs 700 crore, Jefferies expects profitability to turn positive by FY28, aided by scale and operating leverage. “Swiggy stock appears attractive on valuation, but the imminent capital raise may cap upside in the short term,” it said.
The brokerage values Swiggy’s food delivery business at 38x FY27 EBITDA and quick commerce at 3x FY27 sales, viewing the company as a “high-growth franchise with a clear path to breakeven.”
