Jefferies India Gives Buy Rating to Five Stocks with Up to 64 Percent Upside

Global investment bank Jefferies India has given a buy recommendation to five shares after reviewing the Q2FY27 results season, despite reducing price targets on some counters. The list of recommended shares includes Sunteck Realty, Radico Khaitan, WeWork India, Supreme Industries, and Kajaria Ceramics.

Sunteck and Supreme Industries

For Sunteck Realty, the firm maintained a buy rating while reducing the share price target to 450 rupees, noting that H1FY27 pre-sales growth reached 19 percent from its Mumbai portfolio, though the large Dubai project remains impacted by market conditions and luxury Mumbai projects face delays into FY28. For Supreme Industries, Jefferies kept the buy tag with a price target of 4,235 rupees while making minor EPS tweaks and normalizing the target PE to 34 times, factoring in PVC volatility from the ongoing Middle East conflict while estimating sales and PAT CAGR of plus 17 percent and plus 22 percent over FY26 to FY29.

Kajaria Ceramics

Jefferies raised the base case price target for Kajaria Ceramics from 1,205 rupees to 1,240 rupees, pointing to a margin beat in the September quarter driven by year-to-date price hikes and low employee costs that offset a fuel surge. Pan-India average gas prices have jumped from 37 rupees per standard cubic metre in the December quarter to 71 rupees currently, with potential worsening from the Middle East conflict, while Kajaria's year-to-date price hikes stand at plus 12 to 13 percent in the north and south, and higher in the west, alongside a 10 percent year-on-year rise in Q2 volume on a low base.

Context

Stock market analysts regularly review corporate quarterly earnings reports to issue updated share price targets and recommendations for investors. These brokerage assessments help market participants gauge expected stock performance based on current financial results, cost pressures, and broader industry demand trends.