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On Monday, Jefferies had recommended buying eight stocks that fit their criteria of trading below their 10-year average, 14% EPS growth potential and minimal downgrades in the last two quarters.
The three stocks that Jefferies recommended on Tuesday include Shriram Finance Ltd., KFin Tech Ltd. and 360 ONE WAM.
Shriram Finance
The stock was also part of the Jefferies screening list on Monday, having corrected 20% from its peak. Jefferies has a price target of ₹710 on the stock which implies a potential upside of 22% from current levels.
Jefferies attributed the correction in Shriram Finance to concerns around weak CV markets and rising asset quality risks. The brokerage is anticipating a Compounded Annual Growth Rate (CAGR) of 17% for the company’s Assets Under Management (AUM) over financial year 2025 – 2027, supported by growth in the used Passenger Vehicles and non-Auto segment.
A sharp rise in Shriram Finance’s gross NPA is unlikely, according to Jefferies, who also called the company’s valuations attractive post the recent fall.
KFin Tech
Shares of KFin Tech are down over 45% from their peak and Jefferies calls this move exaggerated in the context of a weak equity market sentiment.
Although 40% of the company’s revenue is equity-linked, but issuer solutions, AIFs, and international businesses are not directly linked to the equity markets, according to Jefferies.
It also sees a 17% profit CAGR for Kfin over financial year 2025 and 2027 with further upside aided by M&A activity.
At 44 times financial year 2026 price-to-earnings, Jefferies says it is a “strong opportunity.”
Jefferies has a “buy” rating on KFin Tech with a price target of ₹1,310, implying a potential upside of 43% from Monday’s close.
360 ONE WAM
In a recent analyst meet, 360 ONE WAM reiterated its synergies from the recently announced acquisition of B&K Securities, which will compliment its UHNI wealth offerings.
Given the existing promoter relationships, the scale-up of equity broking business offers lucrative opportunities, Jefferies wrote in its note.
However, it has cut its financial year 2026-2027 earnings estimates by 6% to 8% to account for the mark-to-market hit and moderation in flows.
Jefferies maintained its “buy” rating on the stock with a price target of ₹1,270, implying a potential upside of 25% from current levels. The stock is also down 24% from its peak.
