6 ‘Buy’ recommendations by Jefferies with 34% to 63% upside

Godrej Properties and Adani Energy Solutions feature prominently on the list, supported by expectations of stronger cash flows and sustained earnings growth. JK Cement’s capacity expansion plans and IndusInd Bank’s potential profitability recovery also support Jefferies’ view. For Bharat Petroleum Corporation, refining performance remains a key earnings driver, while Au Small Finance Bank’s growing deposit franchise and transition to a universal bank form important parts of its investment case.

Jefferies on Godrej Properties: 'Buy' Jefferies has a 'Buy' on Godrej Properties, with a target price of Rs 2,550, implying an upside potential of 63%. In its October 23 report, the brokerage pointed to improved collections, stronger operating cash generation and a healthy project launch pipeline. Collections rose 31% year on year in the September quarter, while the operating cash flow surplus more than doubled.

Jefferies sees scope for stronger pre-sales in the second half of FY27 as new projects come to market. The company’s management raised its FY27 pre-sales guidance to Rs 39,200 crore to Rs 41,700 crore, implying growth of 15% to 22% year on year. Jefferies expects stronger cash generation to support positive free cash flow in the second half of FY27 and through FY28. It also considers management’s FY28 target of a 20% reported return on equity achievable.

The brokerage’s assessment rests on the company’s ability to convert its project pipeline into sales and cash collections, while maintaining growth over the coming financial years. “Strong launch pipeline near term could drive a guidance beat taking pre-sales growth to 20%+,” Jefferies said. Jefferies on Adani Energy Solutions: 'Buy' Jefferies has a 'Buy' on Adani Energy Solutions, with a target price of Rs 1,980, implying an upside potential of 62%.

In its October 25 report, the brokerage said the company’s September-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA) exceeded expectations, led by its trading business. Jefferies raised its FY27 EBITDA estimate by 6%, although it trimmed estimates for FY28 to FY30 to account for lower expected capitalisation in transmission and smart meters. The trading segment has become a more significant contributor to earnings.

Jefferies also pointed to the company’s renewable energy and battery energy storage capacity tie-ups as potential support for the business. Meanwhile, its transmission project pipeline offers another source of expansion, with projects worth Rs 87,200 crore under execution. Although the brokerage lowered its transmission capitalisation expectations for FY27 and FY28, it remained positive on the company’s longer-term growth prospects.

It sees the trading business as a potential source of additional earnings beyond its core transmission operations. “However, we remain confident on 25%+ EBITDA CAGR over FY26-30E with upside from the trading business,” Jefferies stated. In its October 25 report, the brokerage said JK Cement’s September-quarter EBITDA grew 14% year on year to approximately Rs 500 crore, exceeding its estimate by 4%.

Higher sales volumes supported the performance, although rising fuel and other operating costs weighed on profitability per tonne. Standalone grey and white cement volumes increased 21% and 14% year on year, respectively. Jefferies noted that cost pressures could persist into the following quarter, while cement price increases introduced across the industry in October could offer some relief. The company’s capacity expansion programme remains central to its longer-term plans.

The North India expansion is expected to take cement capacity to around 40 million tonnes per annum in the first half of FY28. Further brownfield projects are intended to support its target of reaching 50 million tonnes of capacity by FY30. Jefferies also noted progress in JK Cement’s adjacent businesses, including wall putty and water-based paints. Its investment case rests on volume growth, planned capacity additions and the company’s ability to manage operating costs as it expands.

Jefferies on IndusInd Bank: 'Buy' Jefferies has a 'Buy' on IndusInd Bank, with a target price of Rs 1,130, implying an upside potential of 35%. In its October 23 report, the brokerage said the bank’s September-quarter profit was ahead of expectations, supported by lower credit costs and stronger fee and treasury income. Loans increased 11% year on year, while net interest income grew 4%. The report also noted continued improvement in asset quality.

Jefferies expects lending momentum to improve as the bank deploys liquidity and benefits from the repricing of certain loans. It sees scope for better pre-provision operating profit, although it cautioned that credit costs may be close to their lowest levels. The brokerage lowered its price target to Rs 1,130 from Rs 1,250, citing the expected impact of tighter bancassurance fee rules and somewhat higher credit costs.

It reduced its FY28 and FY29 earnings estimates while raising its FY27 estimate following stronger net interest income and treasury gains. Jefferies said the bank’s valuation was attractive and expects return on assets to improve over FY28 and FY29. Its assessment depends on the bank sustaining operating improvements while managing credit costs and fee income pressures. “We see levers to improve profitability through better PPoP, even as credit costs are near the bottom,” Jefferies said.

Jefferies on Bharat Petroleum Corporation: 'Buy' Jefferies has a 'Buy' on Bharat Petroleum Corporation (BPCL), with a target price of Rs 380, implying an upside potential of 35%. In its October 25 report, the brokerage said BPCL’s September-quarter EBITDA was 43% ahead of its estimate, driven by stronger-than-expected refining margins. Profit after tax was also ahead of expectations. High crude prices, however, have put pressure on the company’s marketing business.

Jefferies warned that weak petrol and diesel marketing margins could weigh on earnings in the following quarter. Despite those risks, the brokerage said BPCL’s performance in the first half of FY27 had been significantly ahead of Hindustan Petroleum Corporation’s. It also pointed to BPCL’s relative valuation and higher return on equity as factors supporting its investment case. “Stock is down 28% since the start of the conflict and trades at a discount to HPCL on P/B despite higher ROE,” Jefferies said.

Jefferies on AU Small Finance Bank: 'Buy' Jefferies has a 'Buy' on AU Small Finance Bank, with a target price of Rs 1,250, implying an upside potential of 34%. In its October 26 report, the brokerage said the bank’s September-quarter profit rose 53% year on year to Rs 860 crore, broadly in line with its estimate. Net interest income increased 32%, supported by 25% loan growth. Fee income also rose, helping drive an increase in core pre-provision operating profit.

The deposit franchise continued to expand. Deposits excluding foreign currency non-resident bank deposits increased 27% year on year, while the current account and savings account balance rose 29%. Jefferies also noted that the bank had added 63 liability branches in the first half of FY27 and planned to add another 37 in the second half. The report identified some pressure points, including slightly higher loan slippages and a lower coverage ratio.

However, credit costs were below the brokerage’s estimates, and it said the quality of the unsecured lending book had improved. Jefferies lowered its earnings estimates for FY27 to FY29 to account for higher operating expenses and tighter bancassurance fee rules. It nevertheless expects strong profit growth over the period. The brokerage also sees the transition to a universal bank licence as an opportunity to strengthen the bank’s deposit franchise.

“Transition to Universal Bank will strengthen deposit franchise and grading,” Jefferies said. Conclusion Jefferies’ assessments reflect different paths to growth across the six companies. From growth dynamics to evolving industry conditions, the global investment bank has considered many factors while ascribing the specific ratings. Investors must carefully consider the key factors outlined by Jefferies.

Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor before making any investment decisions.