Top stocks to buy: Adani Energy, AU Small Finance Bank, BPCL, IDFC First Bank — Jefferies sees up to 62% upside | Target
Despite reducing the upside price target, the Jefferies India report has predicted 62% upside in this Adani Group share, saying, "We lower our SOTP-based PT to ₹1,980 (vs ₹2,060) given the EBITDA cut and continue to value AESL’s ex trading business EBITDA at 22x EV/EBITDA Sept 28E (8% disc. to 10-yr avg.). We maintain 5x EV/EBITDA Sept 28E for the trading business EBITDA, which is 12-18% of overall EBITDA, given the sustainable business profitability spread is yet to be ascertained. Trading is 3% of the SOTP value. Downside risks include 1) inability to maintain interest rate and 2) market share loss."
Adani Energy Solutions' share price finished at ₹1,220 per share on Friday.
Despite reducing the upside price target, the latest Jefferies India report has predicted 34% upside in AU Small Finance Bank shares, saying, “We lower earnings est by 1-5% to factor higher opex & tighter bancassurance fee norms. We see 23% CAGR in loans and 28% CAGR in profit over FY27-29 (normalised base of FY27), and ROE improving to 15-16%, with upside from strengthening franchise strength with a universal bank license. We make a slight cut in PT to Rs1,250 (from Rs1,270), based on 2.9x Dec-28E adj. PB. AU stays among our top-picks, and we see 25% Cagr compounding here.”
AU Small Finance Bank share price finished at ₹932.90 per share on Friday.
The latest Jefferies India report has reduced the upside price target of BPCL shares also, but the global investment bank has remained bullish on the oil PSU stock, saying, “The risk of escalation in the conflict has led to a sharp rally in Brent, hurting the stock. We note BPCL's performance in 1HFY27 has been significantly ahead of its peer HPCL. The stock is trading at a discount to HPCL on a P/B basis despite a superior full-cycle ROE. We see room for significant re-rating in the stock once hostilities conclude. Maintain Buy with PT of Rs380 - at 1.4x Sep-28 P/B.”
The Jeffeires India has given a ‘buy’ tag to IDFC First Bank shares, saying, "We raise estimates for FY27 by 8% and 2-3% for FY28-29 & see ROA improving to 1% in FY27; expansion in FY28 is dragged by lower banca fees. Over FY28-29, we expect c.20% growth in loans and stable NIMs, which, along with some operating synergies, should aid the rise in profitability. Bank's CET-I is at 13%, and given growth plans & lower ROE, it may need capital over 12 months. We retain a price target of ₹96 based on 1.4x Dec-28E adjusted PB. Buy stays."
Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).
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HomeMarketsStock MarketsTop stocks to buy: Adani Energy, AU Small Finance Bank, BPCL, IDFC First Bank — Jefferies sees up to 62% upside | Target
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