ICICI Bank, Axis Bank, Coal India, L&T feature amongst top 27 picks by Jefferies

ICICI Bank is among the top picks of Jefferies India Pvt Ltd across Indian financials as Jefferies believes that the Bank can sustain superior growth, better asset quality and higher ROEs.

 Axis Bank Ltd and IndusInd Bank are amongst other picks in the Banks.

For Axis Bank Jefferies believes that past investments have made the franchise stronger, and bank is on track to deliver higher growth and RoEs on a sustainable basis. 

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Similarly for IndusInd Bank Jefferies says that the Banks is on track to deliver a turnaround in ROA as it continues to improve core franchise with a focus on building domain specialisation to ramp up on liabilities (NRI, HNI, wealth) & loans (new vehicle loans, micro-banking & SME).

Bajaj Finance Ltd, ICICI Prudential Life Insurance, Cholamandalam Finance, Shriram Finance are other top picks of Jefferies analysts in the BFSI (Banking Finacial Services and Insurance) space

Eicher Motors, TVS Motors, Tata Motors, are Top Buys of Jefferies in the Auto segment.

“We like Tata Motors for the ongoing turnaround at JLR, along with improving Passenger vehicle and Electric Vehicle franchise and strong truck upcycle in India” said analysts at Jefferies.

A strong cyclical recovery in Indian two-wheelers is expected as per Jefferies, after the abnormal 35% fall over FY19-22 for the segment that is core to Indian personal mobility; They believe two-wheelers are ripe for a replacement cycle. They estimate two wheelers growing at 14% CAGR over FY23-26.

Coal India Ltd remains amongst top picks of Jefferies in Metals and Mining segment. Coal India’s volume growth trajectory has improved and is likely to sustain amid India’s strong economic growth outlook and rising power consumption, believe Jefferies.

Meanwhile in the Capital Goods & Logistic space Larsen and Toubro Ltd, Thermax Ltd, NTPC Ltd and JSW Energy Ltd are top picks of Jefferies analysts.

Analysts at Jefferies believe the peak of non-core investments is behind and L&T has potential to surprise on execution and order flow expectations.

For Thermax Management focus is on leveraging its brand in green offerings, improving capital allocation, margin improvement and seeking new renewable energy (RE) growth avenues with global tie-ups

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For JSW Energy three triggers are likely to play out for the company over the next 12-24 months says Jefferies. Visibility improving on Renewable Energy moving to 81% of capacity by FY30 estimated from 52% in FY23. Commissioning of 700 MW merchant capacity in peak power deficit times; and also progress on one of India’s first green hydrogen plants and energy storage battery unit.

For NTPC Jefferies believes Power Capex CAGR will Rise 9 times at 20% in FY23-26 estimated versusvs just 2.2% in FY10-20 as per their estimates.

In Real Estate Godrej Properties while in the consumer space Godrej Consumer products along with Honasa Consumer, Zomato are the Jefferies Top Picks

Sun Pharmaceutical Industries, Piramal Pharma, Max Healthcare are top picks of Jefferies in the Pharmaceuticals and Healthcare space.

Jefferies top picks also include UltraTech Cement Ltd in the Cement space and Bharti Airtel in the Telecom space

Mid-Cap picks by Jefferies include Kajaria Ceramics, Amber Enterprises and Supreme Industries.

Tech Mahindra, Cummins India, Asian Paints, Gujarat Gas and Tata Power are amongst Jefferies top Underperform ideas.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions

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Published: 22 Nov 2023, 02:32 PM IST