Jefferies’ latest picks focus on companies that are strong players in their own segment. Most of them operate in areas like affordable housing finance, tech-linked financial services, and lending to smaller borrowers. The brokerage house believes these names offer a good entry point right now because their earnings are set to grow and their valuations leave room for gains. It sees as much as 44% upside in select plays.
Here are the top picks from Jefferies and the investment rationale-
Jefferies on KFin Technologies: ‘Buy’
KFin Technologies has as much as 40% upside from current levels, as per Jefferies. The brokerage house has set a target price of Rs 1,460 per share.
Jefferies pointed to the company’s strong earnings outlook, driven by its push to grow market share in its niche financial-tech services. Even though the September quarter was mild, the brokerage expects a pickup. It forecasts EPS growth of 44% in FY25, 41% in FY26, and 39% in FY27, supported by steady business additions. Jefferies sees ROE at 25% in FY26 and FY27, which it considers strong for the sector.
Jefferies on Aptus Value Housing Finance: ‘Buy’
Jefferies kept a Buy call on Aptus with a target of Rs 415 per share. This indicates as much as 44% upside. The brokerage said the stock looks cheap compared to its own history, trading below its 5-year average price-to-book.
Aptus posted a profit beat in the September quarter. Loan growth slowed a bit, but Jefferies expects spreads to improve as funding stays steady. The firm sees Aptus delivering a 21% EPS growth rate over FY26–28 and a 20% ROE in FY27, which supports the view that there’s room for the stock to re-rate.
Jefferies on Bandhan Bank: ‘Buy’
Bandhan Bank carries a 42% upside in Jefferies’ view. They have a target price of Rs 200. The stock trades at around 7 times FY27 earnings, which the brokerage considers supportive at current levels.
While the September quarter was soft, Jefferies expects conditions to improve from the March quarter. It sees the bank posting an 11% ROE in FY27, with the stock valued at 0.8 times FY27 adjusted book. The call rests mainly on valuations and the belief that the worst of the slowdown is behind the bank.
Jefferies on Star Health & Allied Insurance: ‘Buy’
Jefferies upgraded Star Health to Buy, estimating a 38% upside. The call is based on better prospects for the health-insurance sector and improvement in the company’s own numbers. The brokerage has set a target price of Rs 650.
Star Health’s second-quarter results showed a better loss ratio, easing earlier concerns. The stock trades at 26 times FY27 earnings, and Jefferies expects ROE to reach 13% by FY27 as claim trends stabilize and growth picks up.
Jefferies on Aavas Financiers: ‘Buy’
Aavas carries a 37% upside, and Jefferies said the stock looks appealing after the broader affordable-housing finance segment saw valuation cuts. They have set a target price of Rs 2,130.
The company posted a profit beat in the September quarter helped by disbursement acceleration income. Growth stayed steady, and asset quality held up well. Jefferies sees 20% EPS growth over FY26–28 and expects ROE at 14% through FY27. The stock trades at a 48% discount to its 5-year average price-to-book, which the brokerage believes leaves considerable room for a re-rating.