Shriram Finance, KFin Tech, Eicher Motors, TVS Motors, Coal India, L&T, Thermax, NTPC, JSW Energy, Godrej Properties, Macrotech Developers, Bharti Airtel, Honasa Consumer, Zomato, Piramal Pharma, Apollo Hospitals, Ultratech Cement, Ambuja Cement, Kajaria Ceramics, Amber Enterprises, Supreme Industries, and PI Industries. Axis Bank: Axis Bank is one of Jefferies' top picks, as it believes that past investments have made the franchise stronger and that the bank is on track to deliver 16-18% growth in loans, improve its deposit profile, and sustain ROE of 18%. Integration with Citibank’s India retail platform is progressing well with limited attrition among staff and customers and significant scope for synergies in 60 areas on revenues and cost.
The brokerage thinks this can be RoE accretive from FY25. It forecasts Axis to deliver a 17% CAGR in normalized profit over FY24-26 and an ROE of 18% in FY25. BUY with PT of ₹1,380.
ICICI Bank: ICICI Bank is among Jefferies' top picks across Indian financials, as it believes that the Bank can sustain superior growth, better asset quality, and higher ROEs. Bank is well poised to leverage on growth pickup, led by deeper penetration and higher market share in urban micro-markets in metro and near-metro areas. It forecasts ICICI to deliver a 14% CAGR in profit over FY24-26 and an ROE of 19% in FY25.
At CMP, it trades at 2.3x on FY25 adj. PB, which looks justified in the context of higher growth, improved asset quality, and stronger profitability trends. State Bank of India: Among PSU names, Jefferies like SBI the most, as we think it is well positioned to deliver healthy earnings growth supported by low credit costs.
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