Jefferies Picks 6 Indian Stocks With Up to 59% Upside

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AuthorAarav Shah|Published at:
Jefferies Picks 6 Indian Stocks With Up to 59% Upside
Overview

Jefferies has maintained its 'Buy' ratings on six prominent Indian companies, including Adani Green Energy, Paytm, JSW Energy, Kotak Mahindra Bank, UltraTech Cement, and Nuvama Wealth Management. Despite some December-quarter earnings volatility and estimate adjustments, the brokerage's positive outlook is underpinned by strong execution visibility, robust balance sheets, and medium-term earnings growth prospects, projecting potential upside ranging up to 59% in select stocks.

Jefferies Reiterates Six 'Buy' Ratings

Jefferies has reaffirmed its 'Buy' recommendations on six Indian companies following a thorough review of their December-quarter results, execution progress, and sector-specific policy developments. The brokerage firm highlighted that near-term earnings fluctuations have not deterred its medium-term outlook, which remains anchored to strong execution visibility, solid balance-sheet support, and sustained earnings growth across these select entities.

Potential Upside Identified

Projecting potential returns from the mid-teens to a substantial 59%, Jefferies' latest research notes point to significant value creation opportunities. The six stocks that retain their 'Buy' status are JSW Energy, Kotak Mahindra Bank, UltraTech Cement, Adani Green Energy, Paytm (One97 Communications), and Nuvama Wealth Management. These selections span critical sectors including energy, banking, infrastructure, and financial services.

Stock-Specific Analysis

For JSW Energy, Jefferies maintained a 'Buy' despite a weaker December quarter, citing execution momentum and capacity expansion. The brokerage anticipates a 41% EBITDA CAGR in FY25–28E, projecting an upside of approximately 53% to its Rs 660 target price, supported by expected promoter infusion. Kotak Mahindra Bank also earned a 'Buy' with a target price of Rs 530, implying a 30% upside, supported by loan growth ahead of peers and stabilizing asset quality.

UltraTech Cement is Jefferies' preferred pick in its sector, retaining a 'Buy' rating with a target of Rs 14,750, indicating a 16% upside. Strong December-quarter EBITDA beat, improved industry demand, and potential pricing hikes are key drivers. Adani Green Energy holds a 'Buy' rating with a Rs 1,260 target, signaling a 59% upside, driven by long-term power purchase agreements and execution at the Khavda project, despite recent earnings estimate cuts.

Even after adjustments related to the RBI's non-renewal of the Payments Infrastructure Development Fund scheme, Paytm retains its 'Buy' rating with a target of Rs 1,450, suggesting a 28% upside, contingent on core business traction. Finally, Nuvama Wealth Management earned a 'Buy' with a target of Rs 1,700, implying a 35% upside, buoyed by strong cost controls and operating leverage in its wealth management segment.

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