Global brokerage house Jefferies has turned positive on select new-age and infrastructure-linked companies, identifying stocks where it sees upside potential ranging from nearly 20% to 34% from current market levels.
The brokerage’s preferred picks currently include fintech platform Pine Labs, investment platform Groww and airport operator GMR Airports.
While each business operates in a completely different segment, Jefferies believes all three companies are entering an important phase where execution, operating leverage and business expansion could become key growth triggers over the next few years.
Let’s take a look at why the brokerage remains bullish on these stocks and what factors investors may need to watch going forward.
Jefferies on Pine Labs: ‘Buy’
Jefferies has maintained its ‘Buy’ rating on Pine Labs and set a target price of Rs 185. This implies an upside potential of nearly 34% from the current market price.
According to the Jefferies report, the company’s March quarter earnings came slightly below estimates as revenue growth moderated and margins remained under pressure because of slower point-of-sale rollout and weakness in some business segments.
Jefferies noted, “March-Quarter core earnings missed estimates with 17% YoY revenue growth.”
The brokerage added that slower traction in the digital infrastructure business, moderation in affordability solutions and weakness in forex card payments affected overall growth during the quarter.
At the same time, Jefferies highlighted that one of the biggest positives was the sharp improvement in cash flows and tighter control on receivables.
According to the brokerage report, “The key positive in the results was improvement in cash flows.”
Management also remains optimistic that revenue growth could gradually recover during FY27 as point-of-sale deployment improves and gifting, issuing and affordability businesses pick up again.
Jefferies stated, “Management is quite positive that growth in revenues should improve towards 20% from Q1 onwards.”
The brokerage also believes operating efficiencies may continue helping profitability over the next two years even after slightly lowering earnings estimates.
Jefferies on Groww: ‘Buy’
Jefferies has also maintained a ‘Buy’ rating on Groww and assigned a target price of Rs 225. This translates into an upside potential of around 20%.
The brokerage house Jefferies in its report noted that investor discussions around Groww have largely centred on wealth management strategy, lending expansion, customer behaviour and regulatory developments.
Jefferies said, “Bulls appreciate the execution and cross-sell opportunity, while Bears question the scalability of wealth management and highlight regulatory risks.”
One of the key themes highlighted by the brokerage is Groww’s attempt to build separate offerings for different customer segments. The company is expanding beyond stock broking into wealth management, mutual fund advisory and lending products.
According to the brokerage report, “This business could turn profitable in 2-3 years.”
Jefferies also believes Groww still has room to gain market share in the core broking business. The brokerage highlighted that the company’s active client market share remains significantly higher than its turnover market share, indicating possible growth opportunities ahead.
Another important area investors are closely watching is Margin Trading Facility (MTF) penetration. According to the brokerage report, only a small percentage of Groww’s active traders currently use leveraged trading products compared to peers.
Jefferies added, “MTF penetration is half of peers.”
At the same time, the brokerage highlighted that regulatory developments and customer behaviour trends in derivatives trading remain important monitorable factors for the company going forward.
Jefferies on GMR Airports: ‘Buy’
Jefferies has also maintained a ‘Buy’ rating on GMR Airports and set a target price of Rs 125. This indicates an upside potential of nearly 30%.
According to the brokerage report, the company’s March quarter Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) came slightly below estimates because of weakness in international passenger traffic and higher expenses at Hyderabad airport.
Still, Jefferies highlighted that the overall airport platform continues to scale up strongly.
The brokerage noted, “FY26 EBITDA at Rs 6,000 crore grew 60% YoY.”
Traffic growth remained muted during the quarter due to travel disruptions and geopolitical concerns. However, airport revenue per passenger and non-aero revenue growth continued improving across several airports.
Jefferies stated, “Non-Aero Revenue grew 12% YoY despite just 1% passenger growth.”
Another positive highlighted in the report was the company’s improving balance sheet position, with net debt witnessing a slight decline after several quarters.
At the same time, Jefferies believes city-side development projects, airport-linked commercial infrastructure and expansion into hospitality projects could gradually become additional growth drivers for the company over the longer term.
Disclaimer: The stock ratings, target prices, and growth projections mentioned in this article are sourced from a global brokerage report by Jefferies and do not constitute personal investment advice, an offer, or a solicitation to buy or sell securities. Financial markets carry inherent risks, and individual company performances are subject to market volatility, regulatory changes, and execution risks. Readers are strongly advised to conduct their own research and consult a SEBI-registered financial advisor before making any investment decisions.
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