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HomeMarketStocksJefferies bets on Zomato, SBI, 17 other stocks to play India growth...

Jefferies bets on Zomato, SBI, 17 other stocks to play India growth story


With Indian equities scaling all-time highs and seen sustaining the momentum in December as properly, brokerage Jefferies India has shortlisted 19 shares for buyers so as to add to their portfolios.

Banks are on the highest of this checklist, with the brokerage’s bets being , , and .

“ICICI Financial institution is amongst our prime picks throughout Indian financials as we imagine that the financial institution gives among the many greatest risk-reward throughout friends with superior progress, improved asset high quality and better RoEs,” the brokerage mentioned in its report.

Its goal value for shares of ICICI Financial institution is Rs 1,150, implying an upside of 24% from present ranges. The inventory was up 0.3% at Rs 933.80 on the Nationwide Inventory Alternate.

In line with the brokerage, SBI is well-positioned to ship wholesome progress in earnings with an uptick within the topline and low credit score prices. Additional, valuations are fairly engaging, with a wholesome return on fairness (RoE). Jefferies’ goal value of Rs 760 for the inventory implies a 25% upside from present ranges. The inventory was buying and selling 0.4% larger at Rs 610.05.

Within the vehicle pack,

, , and Co are the shares Jefferies is betting on.
“Tata (Motors) is within the early part of a multi-year turnaround, led by a confluence of improved technique and cyclical restoration,” it mentioned.

The brokerage likes Tata Motors given the cyclical restoration and enhancing franchise in India, management within the electrical automobile (EV) area, and JLR’s concentrate on returning to larger margin Land Rover fashions.

Jefferies has a value goal of Rs 540 for Tata Motors inventory, implying an upside of 24%.

The following set of bets is within the capital items and infrastructure sectors for Jefferies.

Larsen & Toubro,

, and Container Corp of India are the highest picks for the brokerage.

“We imagine the height of non-core investments is behind, and L&T has the potential to shock on execution and order stream expectations,” Jefferies mentioned and has a goal of Rs 2,455 for the inventory. This means a possible upside of about 15% from present ranges.

Actual Property is one other sector that Jefferies is bullish on, given the robust demand outlook for residential properties throughout numerous markets regardless of a excessive interest-rate surroundings.

and are the highest picks on this sector.
, a inventory that witnessed heavy promoting amid the rout within the new-age know-how sector, has made it to the “purchase” checklist of Jefferies.

Regardless of a 60% correction from the height, Zomato shares commerce at 3.5 instances its enterprise value-to-revenue ratio on a one-year ahead foundation.

This, in line with Jefferies, is justified within the context of a protracted progress runway. It sees constant enchancment in profitability in meals supply. The brokerage has a goal of Rs 100 for the inventory, implying a

50% upside to the present market value.

Finance, , , , , and Supreme Industries are the opposite bets of the brokerage.

(Disclaimer: Suggestions, recommendations, views and opinions given by the specialists are their very own. These don’t symbolize the views of Financial Occasions)



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