Jefferies picks 5 financial stocks with upside of up to 25%. How many do you have?
With a stock price target price of Rs 1,250, the brokerage forecasts an upside of 17%. The lender will transition from a small-finance bank to a Universal bank that can lower funding cost, lift fees and strengthen brand to aid growth. Over FY26-29, strong deposit growth will aid credit growth of 22% CAGR and 29% in PPP (ex-treasury), highest in its coverage.
Jefferies has identified five financial companies with a market capitalization of around or above $5 billion that could deliver a 25% compound annual growth rate (CAGR) in operating profit over the next three years. These companies include PB Fintech, a lender transitioning to a universal bank, and another unnamed company with a 49 million merchant base.
Jefferies has rated all five as Buy, expecting strong earnings compounding to drive investor returns despite their relatively higher valuations. The brokerage has pegged the target price at Rs 240 for PB Fintech, an upside of 23% from current levels, and Rs 1,250 for the unnamed company, an upside of 17%. The lender anticipates a transition to a universal bank that can lower funding costs, lift fees, and strengthen its brand to aid growth.
The brokerage foresees a 34% adjusted AUM CAGR over FY26-29 for the lender, driven by the scale-up of new products to 34% of total assets and faster growth in prime PL and gold loans.
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