Jefferies has released a series of reports on Indian stocks across banking, insurance, and metals, initiating and upgrading ratings while outlining growth expectations and sector dynamics.
Jindal Stainless: Initiated with Buy, TP ₹800
Jefferies initiated coverage on Jindal Stainless (JSL) with a Buy rating and a target price of ₹800, highlighting its leadership in India’s growing stainless steel (SS) market. The brokerage noted JSL’s lower EBITDA/ton volatility and superior balance sheet versus carbon steel peers. With China’s SS conversion spreads at decade-lows, any rebound could significantly boost margins.
Jefferies expects JSL to post a 10% volume CAGR and 21% EPS CAGR, with a 17% ROE over FY25–27E. At 11x FY26E EV/EBITDA, Jefferies finds valuations reasonable, citing the ~25% global SS premium over carbon steel.
Bandhan Bank: Buy, TP ₹195
Post management interaction, Jefferies retained a Buy rating on Bandhan Bank with a TP of ₹195. While the bank is cautious on asset quality amid tighter lending caps from April, its relatively lower exposure to leveraged borrowers offers some buffer.
Jefferies projects a moderation in credit costs starting 2HFY26 and expects FY26 ROA to remain steady. Over 2–3 years, the MFI loan share may decline from ~40% to 35%, but lower credit costs and operating leverage could raise ROA to 1.8%-1.9% by FY28.
Max Financial: Buy, TP ₹1,700
Jefferies maintained a Buy on Max Financial, despite CEO Prashant Tripathy’s planned early retirement in Sep-25 and Chairman Rajiv Anand’s retirement from Aug-25. While acknowledging this as a minor setback, Jefferies expects smooth succession via internal elevation.
Sectoral tailwinds such as regulatory changes, shift to Non-Par segments, and steady business growth are likely to cushion the transition. Jefferies sees any stock correction as a potential buying opportunity.
Nuvama: Buy, TP ₹8,000
In Q4, Nuvama delivered a 30% YoY rise in revenue and 39% growth in profit, both ahead of estimates. Capital markets PBT surged 63% YoY, contributing 64% to overall PBT. However, wealth management profit growth lagged due to higher incentive-related expenses.
Net flows remained healthy at 5% of AUM, and Jefferies sees this as a key positive despite slower IB revenues (+16% YoY). It retained a Buy with a TP of ₹8,000.
Metals & Mining: Mixed stance
Jefferies is constructive on Indian steel, citing 8–10% volume CAGR for FY25–27E, aided by safeguard duties. Historical trends suggest a favorable risk-reward at current Asian conversion spreads, which are 30% below long-term averages.
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Tata Steel: Retained Buy, TP ₹200
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Jindal Stainless: Initiated Buy, TP ₹800
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JSW Steel: Upgraded from Hold to Buy, TP raised to ₹1,200
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Coal India: Retained Buy, TP ₹455
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Hindalco: Downgraded to Hold, TP cut to ₹690, citing muted earnings and rising leverage
Disclaimer: The views expressed in this article are those of Jefferies and do not represent investment advice or recommendations from Business Upturn.
