Archive · 7 Sep 2026
Jefferies Highlights Stocks With Up to 25% Upside Potential
Jefferies is a brokerage firm that studies companies and gives investment opinions.
It has a ‘Buy’ view on Hindustan Unilever and Fortis Healthcare.
It also prefers Sona BLW Precision Forgings and Bharat Forge among auto-component companies.
Jefferies thinks HUL can grow by selling more premium products and reaching more customers.
It expects HUL’s cost savings and use of artificial intelligence to support profits over time.
Fortis is expanding existing hospitals and improving occupancy and profitability.
Jefferies believes a court-ordered audit should not significantly interfere with Fortis’ business.
The brokerage also found that auto-component companies had stronger recent EBIT growth than vehicle manufacturers, although valuations are high for many companies.
Jefferies retained its ‘Buy’ rating on Hindustan Unilever with a Rs 2,450 target price, implying about 25% upside.
Fortis Healthcare received a ‘Buy’ rating and Rs 1,125 target price, representing roughly 23% potential upside.
Jefferies expects HUL’s growth to come from premium products, new categories, rural distribution and cost savings.
The brokerage said Fortis’ Delhi High Court-ordered forensic audit is unlikely to disrupt operations or expansion plans.
Sona BLW Precision Forgings and Bharat Forge are Jefferies’ preferred auto-component picks after the sector outperformed vehicle manufacturers on EBIT growth.
- Who
- Jefferies, the brokerage firm, and the companies it highlighted: Hindustan Unilever, Fortis Healthcare, Sona BLW Precision Forgings and Bharat Forge.
- What
- Jefferies issued or retained ‘Buy’ recommendations and identified growth drivers for the named companies.
- When
- The analysis cites results from the June quarter, estimate changes during the September quarter and targets extending to FY27 and FY28.
- Where
- The recommendations concern Indian companies; the Fortis audit was ordered by the Delhi High Court.
- Why
- Jefferies expects growth from premiumisation and efficiency at HUL, hospital expansion and improving margins at Fortis, and stronger earnings momentum in auto components.
- Hindustan Unilever target
- Rs 2,450; Jefferies sees about 25% upside and retained its ‘Buy’ rating.
- Fortis Healthcare target
- Rs 1,125; Jefferies sees about 23% upside and retained its ‘Buy’ rating.
- HUL margin outlook
- Jefferies expects a medium-term EBITDA margin range of 22-24%.
- HUL savings target
- Management is targeting about 500 basis points of savings over five years.
- Fortis margin goal
- Management aims to reach a 25% EBITDA margin by FY28.
- Auto-component EBIT growth
- The 20 companies tracked by Jefferies recorded 19% year-on-year EBIT growth in the June quarter, versus 10% for OEMs.
- Preferred auto-component stocks
- Sona BLW Precision Forgings and Bharat Forge.