Archive · 14 Sep 2026
Jefferies Sees Indian Financial Stocks Rebounding, Names Ten Buys
Jefferies is a brokerage firm that studies companies and gives investment opinions.
It believes some Indian financial companies could perform better in the coming years.
The firm gave Buy ratings to 10 stocks.
Its favorite banks include ICICI Bank, State Bank of India, Axis Bank, AU Small Finance Bank and IndusInd Bank.
It also recommended five other banks.
Jefferies expects earnings growth for Indian financial companies to rise between FY26 and FY28.
It said improving earnings and clearer leadership plans could help the stocks.
Investors should still research independently and consult a SEBI-registered financial adviser before investing.
Jefferies gave Buy ratings to 10 Indian financial stocks and sees up to 40% upside in select counters.
Its preferred banking names are ICICI Bank, State Bank of India, Axis Bank, AU Small Finance Bank and IndusInd Bank.
Jefferies expects Indian financials’ earnings growth to improve from 7% in FY26 to 14% in FY28.
The broader Buy list also includes HDFC Bank, Kotak Mahindra Bank, IDFC First Bank, Bandhan Bank and Punjab National Bank.
Jefferies rated Bank of Baroda Hold, while earnings upgrades and leadership clarity could influence the sector’s next move.
- Who
- Jefferies, a global brokerage house, and the Indian financial companies covered in its report.
- What
- Jefferies recommended Buy ratings on 10 financial stocks, identified five top picks and set target prices implying up to 40% upside.
- When
- The report discusses expected earnings growth from FY26 through FY28 and possible management changes over the next one to two years.
- Where
- India’s financial-stock market.
- Why
- Jefferies expects earnings growth to improve and believes an earnings-upgrade cycle and greater clarity on bank leadership could support the sector.
- Top picks
- ICICI Bank, State Bank of India, Axis Bank, AU Small Finance Bank and IndusInd Bank.
- Buy-rated stocks
- Ten stocks received Buy ratings, including the five top picks plus HDFC Bank, Kotak Mahindra Bank, IDFC First Bank, Bandhan Bank and Punjab National Bank.
- Highest stated upside
- Bandhan Bank has a potential upside of 40%, with a target price of Rs 240.
- Earnings outlook
- Jefferies expects Indian financials’ earnings growth to rise from 7% in FY26 to 9% in FY27 and potentially 14% in FY28.
- Performance comparison
- The MSCI All Country World Financial Index gained 46% in US dollar terms over two years, while Indian financials declined 9%.
- Hold-rated stock
- Bank of Baroda received a Hold rating with a target price of Rs 275.
- Potential catalysts
- Normalization of the earnings-upgrade cycle and clarity on large-cap chief executives could act as catalysts.