The global brokerage house Jefferies has taken a cautious stance on a select number of stocks, stepping away from ‘Buy’ calls and flagging risks across select stocks.
The brokerage has issued either ‘Hold’ or ‘Underperform’ ratings on three companies. These include BSE, Mahanagar Gas, and Ramco Cements.
Let’s take a look at the stocks the brokerage is cautions and the rationale behind it –
Jefferies on BSE
Jefferies has maintained a Hold rating on BSE. The brokerage has set a target price of Rs 3,050. This implies a modest 5% upside from current levels.
According to the brokerage report, December 2025 profit after tax (PAT) stood at Rs 610 crore, about 5% higher than Jefferies estimates.
However, Jefferies noted that “while market share gains remain a key short-term growth driver, lack of clarity on new products could become a growth challenge post FY29.”
The brokerage highlighted that BSE’s options market share crossed 30% in December 2025 and continued to rise in January 2026, driven largely by Sensex weekly options.
At the same time, certain cost pressures persisted. “SGF contribution remained elevated,” Jefferies said, referring to the Settlement Guarantee Fund, while technology costs rose 35% year-on-year. Employee expenses were also impacted by a Rs 23,75 crore one-off hit due to new labour codes.
Despite raising earnings per share (EPS) estimates by 4-7% for FY26-28, Jefferies maintained its cautious view due to “over reliance on Sensex weekly options, long-term growth challenges, regulatory risks, and increasing competition in co-location racks.”
Jefferies on Mahanagar Gas
Jefferies has assigned an ‘Underperform’ rating on Mahanagar Gas, with a revised target price of Rs 950. This translates to 18% downside from current levels.
According to the brokerage report, earnings before interest, tax, depreciation and amortisation (EBITDA) beat estimates by 5%, supported by higher margins, while overall volumes were broadly in line.
Compressed natural gas (CNG) volumes grew 6% year-on-year, slightly ahead of expectations, while industrial volumes rose 10%, matching estimates. However, Jefferies flagged that overall volume growth slowed to 7% in the December quarter, and retail outlet additions remain behind schedule.
The brokerage also lowered profit estimates for FY27-28 by 6-7%, citing higher depreciation and lower interest income following the UEPL amalgamation.
It added that return on capital employed (RoCE) is expected to fall sharply to around 13%, compared with 21% over FY23-25. While electric vehicle (EV) adoption risk is lower in Mumbai compared to the National Capital Region, Jefferies believes margin pressure and capital intensity will continue to weigh on the stock.
Jeffries on Ramco Cements
Jefferies has also retained a ‘Hold’ rating on Ramco Cements, cutting its target price to Rs 1,045. This translates to a 10% downside risk from current levels. According to the brokerage report, the company’s December-quarter EBITDA came in at Rs 280 crore, missing estimates due to weaker volumes and pricing pressure, particularly in southern markets.
Jefferies noted that “unit EBITDA slips to near multi-quarter low amid intense competition in South region.” While the company continues to focus on reducing debt and expanding non-cement offerings such as construction chemicals, earnings visibility remains limited.
The brokerage trimmed EBITDA estimates for FY26-FY27 by 5–8%. Although Ramco is targeting cement capacity of 31 million tonnes per annum by March 2027, Jefferies highlighted that execution risks remain, especially for upcoming greenfield projects.
The brokerage believes valuation comfort remains limited at current levels.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.