Jefferies Recommends Buying These 2 Stocks for Potential Gains of Up to 32%
Jefferies, a leading brokerage firm, has assigned a 'Buy' rating to DLF Ltd and Reliance Industries Ltd, predicting significant upside potential. DLF Ltd is expected to see a 32.11% increase, while Reliance Industries Ltd could rise by 21.39%.
Dlf LtdReliance IndustriesJefferiesStock MarketInvestmentReal Estate NewsSep 08, 2025
Jefferies has maintained its ‘Buy’ rating on DLF Ltd with a target price of Rs. 1,000, indicating an upside of 32.11 percent from the current market price (CMP) of Rs. 756.95. Jefferies views DLF as a strong cash-flow generating company, supported by a high-quality land bank and excellent product delivery. While near-term profits may remain flat, margins are improving, and underlying sales are expected to reflect in reported numbers by FY28. The firm maintains a Buy rating, noting the stock trades below its historical Net Asset Value (NAV), offering an attractive risk-reward.
DLF Ltd, along with its subsidiaries and partners, is a real estate developer involved in land acquisition, project planning, construction, and marketing, while also providing leasing, power generation, maintenance, hospitality, and recreational services linked to its real estate operations. With a market capitalization of Rs. 1,87,368.97 crore, the shares of DLF Ltd closed at Rs. 756.95 on Friday, down by 0.15 percent from its previous day’s close price of Rs. 758.10 per equity share.
In Q1 FY26, the company reported revenue of Rs. 2,717 cr, up 99.6 percent YoY from Rs. 1,362 cr in Q1 FY25, though down 13.2 percent QoQ from Rs. 3,128 cr in Q4 FY25. Profit rose to Rs. 763 cr, a 18.3 percent YoY increase over Rs. 645 cr in Q1 FY25, but fell 40.4 percent QoQ from Rs. 1,282 cr in Q4 FY25, reflecting strong annual growth tempered by sequential seasonal softness. At the moment, the company’s P/E ratio is 43.8x higher as compared to its industry P/E 39.3x. The company’s ROE and ROCE are 11.4 percent and 6.51 percent respectively, and the D/E ratio of 0.10, indicates the company’s financial performance.
Jefferies has also maintained its ‘Buy’ rating on Reliance Industries Ltd with a target price of Rs. 1,670, implying an upside of 21.39 percent from the current market price of Rs. 1,375.70. Jefferies expects RIL’s Oil to Chemicals (O2C) segment profitability to remain strong, with the impact of Russian crude limited to 2.1 percent of consolidated FY27 EBITDA. While Jio’s upcoming IPO may trigger short-term tariff interventions, the company shows improving visibility for double-digit consolidated EBITDA growth in FY26.
Reliance Industries Limited is an Indian conglomerate with operations in the energy, materials, retail, and digital sectors. Its main business segments are oil to chemicals (O2C), oil and gas, retail, and digital services. The O2C segment includes refining, petrochemicals, fuel and aviation retail, polymers, polyesters, and elastomers, all supported by strong manufacturing and supply-chain infrastructure. The Oil and Gas segment is dedicated to the exploration, development, and production of crude oil and natural gas. The Retail segment provides consumer retail and related services, whereas the Digital Services segment provides a diverse set of digital solutions.
With a market capitalization of Rs. 18,61,662.26 crore, the shares of Reliance Industries Ltd closed at Rs. 1,373.50 on Friday, up by 1.21 percent from its previous day’s close price of Rs. 1,359.30 per equity share. At the moment, the company’s P/E ratio is 24.6x higher as compared to its industry P/E 17.8x, and its ROE and ROCE are 8.40 percent and 9.69 percent respectively, and the D/E ratio of 0.44, indicates the company’s financial performance.
In Q1 FY26, the company reported revenue of Rs. 2,43,632 crore, up 5.1 percent YoY from Rs. 2,31,784 crore in Q1 FY25 but down 6.8 percent QoQ from Rs. 2,61,388 crore in Q4 FY25. Net profit rose sharply to Rs. 30,783 crore, up 76.5 percent YoY from Rs. 17,445 crore and 36.2 percent QoQ from Rs. 22,611 crore, reflecting strong operational performance and improved margins despite seasonal revenue fluctuations.
Frequently Asked Questions
What is Jefferies' target price for DLF Ltd?
Jefferies has set a target price of Rs. 1,000 for DLF Ltd, indicating an upside of 32.11 percent from the current market price of Rs. 756.95.
Why has Jefferies maintained a 'Buy' rating on DLF Ltd?
Jefferies views DLF as a strong cash-flow generating company with a high-quality land bank and excellent product delivery, despite near-term profit flatness. The stock trades below its historical Net Asset Value (NAV), offering an attractive risk-reward.
What is Jefferies' target price for Reliance Industries Ltd?
Jefferies has set a target price of Rs. 1,670 for Reliance Industries Ltd, implying an upside of 21.39 percent from the current market price of Rs. 1,375.70.
What are the main business segments of Reliance Industries Ltd?
Reliance Industries Limited operates in four main segments: Oil to Chemicals (O2C), Oil and Gas, Retail, and Digital Services.
What is the current P/E ratio of Reliance Industries Ltd?
The current P/E ratio of Reliance Industries Ltd is 24.6x, which is higher than the industry P/E ratio of 17.8x.
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