Jefferies Raises Bullish Stance on 25 Stocks Across Sectors
Jefferies, the international brokerage firm, has expanded its list of bullish stock picks to 25 out of a total of 223. The new additions include major players like Reliance Industries, HDFC Bank, and UltraTech Cement, with promising growth forecasts across various sectors.
JefferiesStock PicksFinancialsAutomobileReal EstateReal EstateSep 12, 2025
In the financials sector, HDFC Bank is Jefferies' top pick. The brokerage expects the leading private lender to deliver deposit growth at a 16% compound annual growth rate (CAGR) and loan growth at a 12% CAGR between FY25 and FY28. ICICI Bank is also a strong contender, with Jefferies forecasting loan growth of 15% CAGR and credit costs of 50–70 basis points through FY28, leading to an earnings CAGR of 11% and a return on equity of 17% in FY26.
Max Financial Services is another notable pick, with Jefferies forecasting a 17% CAGR in the value of new business between FY25 and FY28, with margins improving by around 150 basis points. Bajaj Finance is expected to maintain strong growth momentum, with Jefferies projecting EPS to grow at a 23% CAGR over three years, with a return on equity around 20%. Cholamandalam Finance is also favored, with EPS projected to grow at more than 25% CAGR, with return on equity nearing 20%. The recent stock correction provides a good entry point, according to the brokerage.
In the automobile sector, Mahindra & Mahindra is a key pick. Passenger vehicle (PV) volumes are seen rising at an 8% CAGR between FY25 and FY28. With 12 SUV launches planned through 2030, Jefferies expects EPS growth at a 19% CAGR over FY25–28. TVS Motor is another strong player, benefiting from supportive policies such as GST cuts and export recovery. Margins are expected to improve to 14% by FY28, while EPS is projected to grow at a 27% CAGR over FY25–28.
In the metals sector, Jindal Stainless is a standout. Imports are declining due to BIS norms, and anti-dumping duties could further support domestic pricing. Jefferies forecasts EBITDA per tonne to increase to $223 by FY27, driving EPS growth at a 20% CAGR over FY25–28.
In the infrastructure, capital goods, and logistics sector, Hindustan Aeronautics is a key player. The company has an order book of Rs 1.9 lakh crore, six times its FY24 revenues, and a pipeline worth Rs 2.5 lakh crore. Recent orders for Tejas aircraft and Advanced Light Helicopters have boosted visibility.
In the energy and chemicals sector, Reliance Industries is expected to deliver double-digit EBITDA. The brokerage expects an EBITDA CAGR of 11% over FY25–28, with Jio growing at 22% and retail at 14%. Current valuations seem attractive. Navin Fluorine is also a strong pick, with Jefferies expecting EPS to grow at a 36% CAGR over FY25–28, supported by margin expansion from the specialty mix.
In the real estate sector, Lodha Developers is a key player. Pre-sales are targeted at Rs 2.1 lakh crore by FY26, supported by robust housing demand in Mumbai and other key markets. Jefferies believes affordable and mid-income housing demand will continue to drive growth.
In the pharma and healthcare sector, Sun Pharma is a leader with an 8.5% share in India formulations. Its new launches such as Leqselvi and Unloxcyt add further momentum. Mankind Pharma has completed field force restructuring and the integration of the BSV acquisition, which weighed on performance earlier. EPS growth over FY25–28 is expected to remain strong, with valuations seen as attractive given consistent execution.
In the IT sector, Coforge is a key player. The company expects to close 20 large deals in FY26 compared with 14 in FY25. Jefferies projects EPS growth at a 23% CAGR between FY26 and FY28, with margins rising toward 14% by FY27.
In the FMCG and consumer goods sector, the brokerage has identified several strong players, though specific names are not mentioned in the report. The sector is expected to benefit from growing consumer demand and favorable market conditions.
Overall, Jefferies' bullish stance on these 25 stocks across various sectors reflects a positive outlook on the Indian market, driven by robust growth prospects and favorable economic conditions.
Frequently Asked Questions
What is Jefferies' top pick in the financials sector?
HDFC Bank is Jefferies' top pick in the financials sector, with expected deposit growth at a 16% CAGR and loan growth at a 12% CAGR between FY25 and FY28.
Which company in the automobile sector is expected to see significant EPS growth?
TVS Motor is expected to see significant EPS growth, projected to grow at a 27% CAGR over FY25–28.
What is the expected EPS growth for Jindal Stainless in the metals sector?
Jefferies forecasts EPS growth at a 20% CAGR for Jindal Stainless over FY25–28.
How many large deals does Coforge expect to close in FY26?
Coforge expects to close 20 large deals in FY26 compared with 14 in FY25.
What is the target for pre-sales for Lodha Developers by FY26?
Lodha Developers targets pre-sales of Rs 2.1 lakh crore by FY26, supported by robust housing demand in Mumbai and other key markets.
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