On Monday, Jefferies recommended buying eight stocks including Adani Ports, Apollo Hospitals, HDFC AMC, and more, that fit their criteria of trading below their 10-year average, 14 percent EPS growth potential and minimal downgrades in the last two quarters.
Following are the three stocks in focus after receiving a ‘buy’ rating from Jefferies, with a potential upside of up to 47 percent:
1. Shriram Finance Limited
With a market cap of Rs. 1.07 lakh crores, the stock surged nearly 1.5 percent to Rs. 586.05 on Tuesday. Shares of Shriram Finance are down over 21 percent from their peak of Rs. 730.43.
The brokerage firm Jefferies recommended a “buy” rating on Shriram Finance and assigned a target price of Rs. 710 per share, representing a potential upside of nearly 24 percent from Tuesday’s closing price of Rs. 574.15.
The recent decline in the stock is largely attributed to concerns over weak commercial vehicle (CV) markets and increasing asset quality risks.
However, Jefferies forecasts a strong CAGR of 17 percent for the company’s Assets Under Management (AUM) between FY25 and FY27, driven by growth in the used Passenger Vehicles and non-auto segments.
A sharp rise in the company’s gross NPA is unlikely, according to Jefferies, who also called the company’s valuations attractive post the recent fall.
Shriram Finance Limited, formerly known as Shriram Transport Finance Company Limited, is primarily engaged in the business of financing commercial vehicles, passenger vehicles, construction equipment, farm equipment, micro, small and medium enterprises, two-wheelers, gold and personal loans.
2. 360 ONE WAM Limited
With a market cap of Rs. 40,442.5 crores, the stock surged nearly 6 percent to Rs. 1,065.65 on Tuesday. Shares of 360 ONE WAM are down over 21 percent from their peak of Rs. 1,317.25.
Jefferies recommended a “buy” rating on 360 ONE WAM and assigned a target price of Rs. 1,270 per share, representing a potential upside of nearly 22 percent from Tuesday’s closing price of Rs. 1039.5.
In a recent analyst meeting, 360 ONE WAM highlighted the strategic synergies from its acquisition of B&K Securities, which is expected to enhance its ultra-high-net-worth individual (UHNI) wealth management offerings.
Jefferies noted that, with established promoter relationships, the expansion of the equity broking business presents significant growth opportunities.
However, the brokerage has revised its earnings estimates for FY26-27 downward by 6 percent to 8 percent to reflect the impact of the mark-to-market hit and expected moderation in inflows.
360 ONE WAM LIMITED, formerly known as IIFL Wealth Management Limited, is engaged in wealth and asset management services including financial asset distribution, broking, lending, credit and investment solutions and asset and portfolio management.
Also read: How Vijay Kedia’s Major Stocks Performed in the Market Crash?
3. KFin Technologies Limited
With a market cap of Rs. 15,294 crores, the stock surged nearly 1.6 percent to Rs. 926.9 on Tuesday. However, the shares of KFin Tech are still down by over 46 percent from their peak of Rs. 1,640. Jefferies views this decline as an overreaction, considering the broader weakness in equity market sentiment.
Jefferies recommended a “buy” rating on KFin Tech and assigned a target price of Rs. 1,310 per share, representing a potential upside of nearly 47 percent from Tuesday’s closing price of Rs. 889.5.
While 40 percent of the company’s revenue is tied to equity-linked businesses, Jefferies points out that issuer solutions, AIFs (Alternative Investment Funds), and international operations are less affected by the fluctuations in equity markets.
Looking ahead, Jefferies expects KFin to achieve a 17 percent profit CAGR between FY25 and FY27, with additional growth potential driven by mergers and acquisitions (M&A).
With a price-to-earnings ratio of 44 times FY26 earnings, Jefferies considers KFin Tech to present a “strong opportunity.”
Incorporated in 2017, KFin Technologies Limited is engaged in the business of providing service of Registrar to the Public Issue of Securities, Registrar to the Securities Transfers, and back office operations to mutual fund houses and data processing activities.
Written by Shivani Singh
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