Jefferies India has expressed confidence in a range of Indian stocks, highlighting their potential for growth based on domestic economic factors. Among the top picks, ICICI Bank stands out with an anticipated profit compound annual growth rate (CAGR) of 17% through fiscal year 2026 and a projected return on equity (RoE) of 18.1% for fiscal year 2025, garnering a "buy" recommendation and a price target of Rs 1,250.
Shriram Finance also received a favorable outlook due to its expected assets under management (AUM) growth from micro, small, and medium enterprise (MSME) and gold loans. The financial institution has been given a "buy" status with a Rs 2,300 target. Tata Motors (NYSE:TTM) is another beneficiary, with its Jaguar Land Rover (JLR) division's recovery and a robust truck cycle in India contributing to an Rs 800 price objective.
In the energy sector, NTPC is predicted to thrive amid surges in power investment, leading to a targeted price of Rs 300. Zomato's command in the quick commerce market has earned it a "buy" label with a price target of Rs 165.
However, not all companies received positive assessments. Tech Mahindra faces challenges due to a deceleration in communications that is impacting its performance; it has been rated as "underperform" with a price target of Rs 910. Additionally, Asian Paints is contending with Grasim Industries' aggressive entry into the paint market, which could affect its stock value.
Jefferies India's investment approach reflects optimism in various sectors including the auto industry with Eicher Motors, infrastructure projects with L&T, energy demands benefiting Coal India, real estate prospects indicated by Godrej Properties, and telecom sector strength showcased by Bharti Airtel. These evaluations demonstrate Jefferies' diversified strategy towards investing in Indian equities.
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