Jefferies’ Top Stock Picks: SBI, Groww & 5 More for Up to 117% Gains
International brokerage Jefferies has updated its list of recommended Indian stocks, adding seven new names – including State Bank of India and Groww – to its “Bottom-up Analyst Top Ideas” portfolio. The firm now favors 23 companies from a universe of 247 it covers, spanning banking, automotive, steel, and internet sectors. The move comes as Indian markets navigate renewed volatility, according to reports. The Economic Times details the full list of additions and their potential upside.
State Bank of India: Positioned for Loan Growth
Jefferies highlighted State Bank of India (SBI) as well-positioned for continued loan book expansion. The brokerage assigned a target price of Rs 1,300 per share, representing a 20% increase from current market levels. This optimism stems from SBI’s comparatively lower loan-to-deposit ratio (LDR) and stable asset quality. The bank is actively working to improve its return on assets (ROA) beyond the 1-1.1% range and increase its fee-to-asset ratio from 0.5% in fiscal year 2025. A key focus for the coming 12-18 months is accelerating deposit growth from 9% to between 11-12% to sustainably support credit expansion. CNBC TV18 reports that Jefferies forecasts SBI’s loans to grow at a compounded annual growth rate (CAGR) of 13% over FY26-2028, with core earnings growing at 12% CAGR and a Return on Equity (RoE) of 15% in FY27.
Groww: Leading Broker with Strong Growth Potential
Groww, the parent company Billionbrains Garage Ventures, also received a positive assessment. Jefferies set a target price of Rs 195 per share, indicating a 23% upside. The firm cites Groww’s dominant market share – 28% of active clients, significantly ahead of the second-largest player at 15% – as a key strength. This leadership is fueled by a robust mutual fund funnel, a user-friendly interface, and positive word-of-mouth referrals. Jefferies anticipates revenue growth of 29% CAGR between fiscal years 2026 and 2028, driven by increased product offerings and rising client assets. Client assets have grown substantially in recent years, increasing 6-11x over the past three years, mirroring the growth trajectory of US-based peer Robinhood.
Sector Diversification: Beyond Banking and Internet
The additions to Jefferies’ list weren’t limited to the financial and technology sectors. The brokerage also included Star Health &. Allied Insurance, Bharat Forge, JSW Steel, Eternal (Zomato), and Max Healthcare. Star Health, India’s leading private health insurer with a roughly 31% market share in the retail health segment, has a target price of Rs 660 per share, representing a 43% potential gain. Jefferies expects improvements in the company’s loss ratio as claim frequency stabilizes and recent price increases take effect.
Bharat Forge, an automotive component manufacturer, received a target price of Rs 2,150, a 21% upside. Jefferies points to improving operational outlook, supported by signs of a bottoming-out US truck cycle, stronger demand in India, easing trade tensions, and continued momentum in the defense sector. JSW Steel, with a target price of Rs 1,400, is projected to gain nearly 20% from its last closing price. The company has significantly expanded its Indian capacity in recent years and plans further expansion, targeting 50 million tonnes per annum (mtpa) by FY31.
Zomato’s Eternal: Quick Commerce and Food Delivery
Eternal, the parent company of Zomato, was also added to the list with a substantial target price of Rs 480, representing a 117% upside. Jefferies highlights the strong performance of Zomato’s food delivery segment, which continues to grow at over 15% while improving profitability. The brokerage also notes the success of Blinkit, Zomato’s quick commerce arm, which has achieved breakeven despite intense competition in the sector.
Max Healthcare: Expansion and Strong Demand
Rounding out the new additions, Max Healthcare has a target price of Rs 1,320, a 29% upside. The company plans to double its bed capacity over the next three to four years, primarily through brownfield additions, which typically offer faster breakeven periods and higher EBITDA margins. Recent facility acquisitions and expansions have demonstrated strong demand and contributed to EBITDA growth.
Implications for Investors and Market Trends
Jefferies’ updated recommendations reflect a broader assessment of the Indian market landscape. The inclusion of companies across diverse sectors suggests a belief in continued economic growth and opportunities for investment. The emphasis on companies with strong market positions, growth potential, and improving financial metrics indicates a focus on quality, and sustainability. The brokerage’s overall portfolio now comprises 23 “buy” recommendations and eight “underperform” calls, signaling a cautiously optimistic outlook. MSN provides further context on Jefferies’ India Strategy report for March 2026.
Looking Ahead: Monitoring Key Indicators
Investors will be closely watching several key indicators in the coming months to assess the performance of these companies and the overall health of the Indian market. These include macroeconomic data such as GDP growth, inflation rates, and interest rate movements, as well as company-specific metrics such as revenue growth, profitability, and market share. The performance of the US truck cycle will be particularly important for Bharat Forge, while regulatory developments and competitive pressures will be crucial for Star Health and Zomato. SBI’s ability to manage asset quality and accelerate deposit growth will also be a key factor to watch.