Global brokerage firm Jefferies initiated coverage on 13 Indian stocks in 2024. With this, the brokerage expanded its total coverage to 188 stocks with a combined market cap of $3.4 trillion.
Here’s a look at 8 stocks on which Jefferies has initiated coverage this year:
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360 One WAM: Jefferies said, “The asset management company (AMC) is entering a PE fundraising cycle as large maturities approach and should deliver a 20 percent AUM CAGR. Despite some pressure on fees, operational leverage will drive a consolidated C/I ratio improvement of >400bps over the next 3 years and deliver PBT CAGR of 22 percent.”
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Adani Enterprises: The brokerage said that it expects EBITDA to grow 3x over FY24-FY28 as Adani Enterprises is riding on the strong industry tailwinds in new energy/sustainability, airports, infra, digitalisation, and import substitution in India.
Bharti Hexacom: Jefferies said that Bharti Hexacom will deliver 16%/21% CAGR in revenue/EBITDA coupled with moderation in capex.
Data Patterns: Jefferies said the company’s revenues should rise nearly 5x in FY24E-30E as indigenisation and export pipeline might benefit the company. ROE improvement and reducing working capital intensity are the other drivers, the brokerage said.
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Entero Healthcare Solutions: The brokerage said the company could gain from industry consolidation and in FY24-26E it could witness 44 per cent revenue CAGR and an 8x increase in adj. PAT.
Kaynes Technology: Over FY24-26e, Jefferies estimated sales/PAT CAGR at 46 percent/59 percent with a 14-15 percent core OPM. The brokerage assigned target P/E at 50x to Mar’26 EPS in line with the historical trading average.
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PB Fintech: Jefferies said that PB Fintech should witness 30% CAGR in premiums over FY25-27E backed by strong operating leverage in its renewal book.
Syrma SGS Technology: The company’s “core Operating Profit Margin (OPM) of 7-8% is comparable to AMBER but double that of DIXON. By focusing on niche verticals, SYRMA aims to achieve a sales/PAT CAGR of 36%/57% over FY24-26, with OPM remaining at 7-8%,” Jefferies noted.
