Global brokerage Jefferies has refreshed its stock ideas for March, adding 7 companies to its list of preferred ‘Buy’ calls while maintaining a cautious stance on several others.
The latest review includes 23 ‘Buy’ recommendations and eight stocks are marked ‘Underperform’ across Jefferoes’ coverage universe of 247 companies, according to a strategy note released on March 12.
State Bank of India, Star Health and Allied Insurance Company, Billionbrains Garage Ventures which runs the Groww platform, Bharat Forge, JSW Steel, Eternal and Max Healthcare have been newly added to the ‘Buy’ list in the March update.
The brokerage also upgraded select stocks. made changes to earlier views. Delhivery moved out of the earlier ‘Underperform’ bucket with an upgrade to ‘Buy’, while Laurus Labs moved to ‘Hold’.
At the same time, Jefferies continues to maintain its Underperform rating on Hyundai, Wipro and Cipla.
Here are the key stock calls by Jefferies and the changes undertaken
7 fresh ‘Buy’ ideas added by Jefferies in March
State Bank of India
Jefferies added State Bank of India to its preferred ‘Buy’ list with a revised price target of Rs1,300 implying about 22.4% upside. The brokerage expects the country’s largest lender to sustain steady earnings expansion over the next two years.
Jefferies expects loan growth of around 13% between FY26 and FY28 and sees credit costs stabilising near 45 basis points during FY27 and FY28. These trends are expected to support core earnings growth and returns on equity close to 15%.
“We believe SBI is well placed to grow loans as it leverages on lower LDR and stable asset quality,” Jefferies said in the report.
The brokerage added that improving deposit momentum remains an important operational priority for the bank’s management.
“The key deliverable for the management will be to improve deposit growth from 9% now towards 11 to 12% over next 12 to 18 months to aid sustainable credit growth,” the analysts wrote.
Star Health and Allied Insurance
Jefferies initiated a ‘Buy’ stance on Star Health with a price target of Rs 660 implying about 44.4% upside, pointing to improving profitability and sustained growth in health insurance premiums.
The brokerage expects gross premiums to expand at roughly 16% annually between FY26 and FY28 as distribution investments and product additions help expand the business.
“Star Health is the leading private health insurer in India with dominance in the retail health segment supported by its proprietary distribution,” Jefferies wrote.
The brokerage also expects profitability metrics to improve as claims stabilise and operating efficiency improves.
“Expense ratio will improve over FY26 to FY28 driven by lower renewal commissions in senior citizen plans, scale benefits and introduction of straight through processing,” the report said.
Billionbrains Garage Ventures which operates Groww
Jefferies also added Billionbrains Garage Ventures, the company behind Groww, to its ‘Buy’ list with a price target of Rs195 implying about 26.5% upside.
The brokerage expects strong revenue expansion driven by new products and growth in client assets on the platform.
“Groww is the largest broker with respect to active clients with about 28% market share,” Jefferies said.
The brokerage expects the company to broaden its revenue streams as it expands beyond mutual fund distribution.
“The company has recently launched margin trading facility and expanded into commodities, wealth management and loans against securities which allows Groww to cross sell to MF only clients,” the analysts said.
Bharat Forge
Jefferies maintained a ‘Buy’ recommendation on Bharat Forge with a target price of Rs2,150 implying about 26.4% upside, citing improving prospects in commercial vehicle demand and defence orders.
The brokerage said several headwinds that affected earnings in recent quarters appear to be easing.
“BHFC’s operational outlook is improving with signs of US truck cycle bottoming, better truck demand in India, easing of India US tariff and continued traction in defence,” Jefferies wrote.
The brokerage also pointed to a large defence order book and potential earnings acceleration.
“After a moderate growth phase we see growth acceleration ahead and expect 33% earnings CAGR over FY26 to FY28,” the analysts said.
JSW Steel
JSW Steel was another key addition to the ‘Buy’ list with a target price of Rs1,400 implying about 23.6% upside.
Jefferies expects the steelmaker’s earnings to benefit from improving spreads and capacity expansion.
“JSW Steel has rapidly expanded its India capacity and has become the country’s largest steel producer,” Jefferies noted.
The brokerage expects profitability to improve as steel prices recover and margins expand.
“We see EBITDA growing strongly driven by higher profitability and volume growth,” the analysts said.
Eternal
Jefferies also added Eternal to its ‘Buy’ list, pointing to strong growth prospects in food delivery and quick commerce.
The brokerage believes the company’s food delivery business continues to generate strong cash flows due to its market position.
“Food delivery continues to grow at over 15% with improving profitability and strong cash generation,” Jefferies wrote.
The analysts also noted that Blinkit’s rapid growth in quick commerce provides a second growth engine for the company.
“Despite high competitive intensity in quick commerce, Blinkit continues to report strong growth and has reached breakeven,” the report said.
Max Healthcare
Max Healthcare also entered Jefferies’ ‘Buy’ list with a target price of Rs1,320 implying about 32.9% upside as the brokerage expects capacity additions and strong hospital demand to support growth.
“Max Healthcare will be doubling bed capacity in the next three to four years with majority of expansion coming from brownfield additions,” Jefferies said.
Operational momentum has already started improving across new and acquired facilities.
“Recently acquired facilities in Lucknow and Nagpur have ramped up well with strong EBITDA growth post acquisition,” the brokerage added.
Jefferies cautious on 3 stocks with ‘Underperform’ stance
Hyundai India
Jefferies continues to rate Hyundai India as ‘Underperform’ with a target price of Rs1,900.
The brokerage pointed to rising competition in the passenger vehicle market and a weaker product pipeline over the near term.
“The competitive landscape in passenger vehicles has changed meaningfully with stronger SUV portfolios from rivals,” Jefferies said.
“Hyundai Motor India has also lost its number two position in Indian passenger vehicles for the first time since FY09,” the report added.
Wipro
Wipro remains another ‘Underperform’ call with a target price of Rs180 implying about 10.4% downside.
Jefferies expects the company to continue trailing peers in revenue growth.
“Wipro is likely to deliver another year of organic revenue decline owing to higher exposure to consulting and delay in deal ramp ups,” the brokerage said.
The brokerage also expects limited earnings growth in the coming years.
“We expect Wipro to deliver around 2% revenue CAGR over FY26 to FY28 which is the lowest in our coverage universe,” the analysts wrote.
Cipla
Jefferies also maintains an ‘Underperform’ stance on Cipla citing near term pressure on its United States business.
“Near term US revenue is expected to decline sharply as two of its top products face incremental competition,” Jefferies said.
The brokerage added that pipeline visibility remains limited until regulatory issues at the company’s Indore facility are resolved.
Jefferies revises rating for 2 stocks
Delhivery
Jefferies changed its view on Delhivery and upgraded the stock to ‘Buy’ from its earlier negative stance.
The brokerage believes operating trends and growth prospects have improved compared with earlier expectations.
The analysts said the rating revision follows improvements in business fundamentals and a better earnings outlook as logistics demand strengthens.
Laurus Labs
Laurus Labs saw a rating revision in the opposite direction with Jefferies moving the stock to ‘Hold’.
The brokerage expects earnings growth to moderate in the near term as the company adjusts to evolving demand conditions in its key segments.
Conclusion
Jefferies’ March refresh shows a strong tilt toward companies where earnings growth visibility has improved, particularly in banking, healthcare, metals and digital financial platforms.
Among the fresh ‘Buy’ additions, JSW Steel and State Bank of India stand out as large cap ideas tied to cyclical recovery and credit growth, while Groww, Eternal and Max Healthcare represent structural growth stories within technology driven financial services and healthcare delivery.
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.