Top India Financials: Jefferies Names Seven Buy-Rated Stocks

Jefferies has identified its top buy ideas in India’s financial sector, highlighting seven stocks across banking, non-banking finance, and insurance segments that the firm believes are well-positioned for strong performance.

The brokerage’s picks range from large private sector banks to specialized insurers.

1. ICICI Bank (ICICIBC IN) - Jefferies’ top pick features a price target of Rs1,750 based on 2.3x September 2028 adjusted price-to-book value.

The bank is expected to deliver 15% loan growth and 13% core profit growth through fiscal 2029, with return on equity of 17% in fiscal 2027.

The firm highlights ICICI Bank’s industry-leading retail deposit growth of 15% year-over-year and strong asset quality trends, including in small and medium enterprise and unsecured loans.

2. Axis Bank (AXSB IN) - With a price target of Rs1,700 based on 1.7x September 2028 adjusted price-to-book, Axis Bank is projected to achieve 14% loan and deposit growth through fiscal 2029.

Jefferies expects 17% core earnings growth and 14% return on equity in fiscal 2027.

The brokerage notes improving asset quality with slippage ratio at 2.1% and expects credit costs to stabilize at 70-75 basis points.

3. SBI (SBIN IN) - The state-owned lender carries a price target of Rs1,320 based on 1.5x June 2028 adjusted price-to-book.

Jefferies projects 13% loan growth and 12% core earnings growth through fiscal 2029, with return on equity of 15% in fiscal 2027.

The bank leads the sector in retail deposit growth at 14% year-over-year despite its 22% market share in deposits.

4. Bajaj Finance (BAF IN) - The non-banking finance company has a price target of Rs1,280 based on 5x September 2028 price-to-book.

Jefferies expects assets under management growth of 22-24% and highlights improving asset quality trends.

The firm notes Bajaj Finance as one of few large caps where earnings growth can exceed 25% over the next few years with 21% return on equity.

5. Cholamandalam Finance (CIFC IN) - With a price target of Rs2,100 based on 3.6x September 2028 book value, the company is expected to deliver 28% earnings per share growth and 20% return on equity over fiscal 2026-2028.

Jefferies forecasts 21% assets under management growth in fiscal 2027, supported by broad-based momentum across segments.

6. SBI Life Insurance Company (SBILIFE IN) - Jefferies’ top life insurance pick has a price target of Rs2,600 implying 16x September 2028 value of new business.

The firm expects 15% annual premium equivalent growth from here, coupled with value of new business margin expansion of 140 basis points to 29%, indicating return on embedded value can remain above 17%.

7. Star Health & Allied Insurance (STARHEAL IN) - The leading private health insurer carries a price target of Rs725 based on 25x September 2028 earnings per share.

Jefferies projects 15% gross premium growth over fiscal 2026-2029 and 24% earnings per share growth, with return on equity improving to 16% by fiscal 2029.

Star Health & Allied Insurance posted a 40% year-over-year increase in its fourth-quarter net profit, as its gross written premium grew by 17.8%.