The earnings season is on in full swing and the investors are closely tracking how listed companies are faring financially and more importantly, how their stocks might perform next. Amid a flurry of quarterly results, deal making buzz, and sectoral shifts, brokerage house Jefferies has spotlighted a few top picks for investors looking to ride the growth wave.
In its latest report, Jefferies has reiterated ‘Buy’ ratings on stocks like UltraTech Cement, Go Digit, and KFin Tech.
Let’s take a look at why these three companies are grabbing the brokerage attention.
Jefferies on UltraTech Cement: Maintains ‘Buy’ with a target price of Rs 14,000
The brokerage firm remains bullish on India’s largest cement maker, UltraTech Cement, and has revised its target price to Rs 14,000 per share, an upside of nearly 16% from current levels.
According to the brokerage, UltraTech reported a strong set of numbers for the March quarter, with EBITDA rising 12% year-on-year, a welcome rebound after three consecutive quarters of decline. “Unit EBITDA (LFL) spiked to Rs 1,270, up Rs 310 per tonne quarter-on-quarter,” the report noted.
The company’s recent acquisitions of Kesoram and India Cements are expected to see significant profitability improvement in the next 12-24 months. “After a soft FY25, UTCEM can deliver 30%/37% EBITDA/PAT CAGR,” the brokerage highlighted.
Furthermore, the report added that UltraTech is seen as a major beneficiary of India’s infrastructure capex push. Jefferies also praised its focus on sustainability, noting that “UltraTech has set a target of over 60% of energy usage from green sources.”
Jefferies on Go Digit: ‘Buy’ rating with a target price of Rs 360
The brokerage firm has maintained a ‘Buy’ rating on Go Digit, with a target price of Rs 360 per share, implying a potential 17% upside.
The insurance player reported a sharp 120% year-on-year jump in Q4FY25 profit, reaching Rs 1,200 crore, albeit on a low base. While Gross Direct Premium Income growth stood at just 1%, Net Earned Premium saw a healthier 13% rise, aided by better retention.
As per Jefferies report, “portfolio recalibration into non-retail businesses and higher retention of premiums is helping Go Digit grow its investment book faster.” The brokerage also pointed out that increasing allocation to equity could boost yields, though it comes with slightly higher volatility.
Despite some near-term pressures, the report said, “We see NEP growth of 16% over FY25-28 and improvement in profitability. We stay with our BUY call and PT of Rs 360 based on 50x Jun-27 PE.”
Jefferies on KFin Tech: ‘Buy’ call with a target price of Rs 360
The brokerage firm has also issued a ‘Buy’ call on KFin Technologies with a target price of Rs 360, an upside potential of 17%.
According to the brokerage, the company is well-positioned for consistent core growth in the mid-to-high teen range. KFin Tech is expected to benefit from rising investor participation in capital markets, growth in mutual fund assets, and digital adoption in the financial services sector.
The company’s healthy IFRS based profitability and efficient operating model make it a reliable long term bet, the brokerage said.