Archive · 14 Sep 2026
Jefferies names five Indian financial stocks for upside
Jefferies is a brokerage that studied five Indian financial companies.
It believes these companies can grow their operating profits by more than 25% each year from FY26 to FY29.
The companies are Groww, Paytm, PB Fintech, AU Small Finance Bank and Poonawalla Fincorp.
Groww may grow by expanding into wealth management and margin trading.
Paytm may earn more from its large merchant network and new financial services.
PB Fintech may benefit as more people buy insurance online.
AU Small Finance Bank may grow after moving toward a universal bank license.
Poonawalla Fincorp may grow through new lending products.
Jefferies gave all five companies a ‘Buy’ rating, but its estimates are not guaranteed and are not personal investment advice.
Jefferies rates Groww, Paytm, PB Fintech, AU Small Finance Bank and Poonawalla Fincorp ‘Buy’.
The brokerage expects each company to deliver more than 25% operating-profit CAGR from FY26 to FY29.
Target-price upside estimates range from 14% for PB Fintech to 25% for Poonawalla Fincorp.
Jefferies projects growth from new products, improved monetisation, insurance demand, banking expansion and lending diversification.
The estimates are Jefferies’ analysis, not investment advice, and remain subject to market risks.
- Who
- Jefferies and the five companies it assessed: Groww, Paytm, PB Fintech, AU Small Finance Bank and Poonawalla Fincorp.
- What
- Jefferies identified five financial stocks it expects to deliver more than 25% annual operating-profit growth through FY29 and rated all of them ‘Buy’.
- When
- The growth forecasts cover financial years 2026 through 2029; the target prices use a 12-month framework.
- Where
- India.
- Why
- Jefferies expects growth from new products, stronger monetisation, rising online insurance demand, banking expansion and a diversified lending portfolio.
Jefferies’ bullish outlook
Investment cautions
Growth and valuation
Jefferies’ bullish outlook
Jefferies expects strong earnings growth from all five companies despite their relatively high valuations.
Investment cautions
The article’s disclaimer says the targets and estimates are Jefferies’ analysis, are not investment advice, and are subject to market risks.
Business expansion
Jefferies’ bullish outlook
Jefferies expects new offerings and strategic changes to drive growth, including wealth management, UPI monetisation, online insurance, universal banking and new lending products.
Investment cautions
The article does not provide independent confirmation that these initiatives will achieve the projected results.
- Companies
- Groww, Paytm, PB Fintech, AU Small Finance Bank and Poonawalla Fincorp
- Rating
- All five companies carry a ‘Buy’ rating from Jefferies
- Forecast period
- FY26 to FY29
- Operating-profit outlook
- More than 25% compound annual growth for each company
- Highest target upside
- 25% for Poonawalla Fincorp, with a target price of Rs 560
- Lowest target upside
- 14% for PB Fintech, with a target price of Rs 2,050
- Key forecast drivers
- New products, operating leverage, improved monetisation, insurance penetration and banking or lending expansion