As the markets navigate through macroeconomic shifts and sectoral dynamics, the brokerage firm Jefferies has reaffirmed its bullish stance on select stocks. Among the key picks at this hour, HDFC Bank, Voltas, Samvardhana Motherson stand out, with the brokerage maintaining a ‘Buy’ rating on both – Voltas and HDFC Bank and Samvardhana Motherson is their preferred pick in the auto components space.
Let’s take a look into the details of what the brokerage say of these stocks
Jefferies on HDFC Bank: A top pick amidst improving macro trends
Jefferies has maintained a ‘Buy’ rating on HDFC Bank and set a target price of Rs 2,120 per share. This means the stock could rise by 25% from current levels.
According to the brokerage, HDFC Bank’s long-term growth prospects, citing an improving macroeconomic environment, strong deposit market share gains, and strategic digital investments remains a key area in highlight.
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The brokerage in its report highlighted that HDFC Bank has been steadily gaining deposit market share, with an incremental market share of 15-16% compared to its stock share of 11%.
The bank has also lowered its Loan-to-Deposit Ratio (LDR) by 12 percentage points in the past year, bringing it down to 98%. Management aims to reduce it further to 90% over the next two years, which should fuel loan growth.
“Among home loan borrowers, 96% open savings accounts with reasonable balances that almost double within a year of opening,” the brokerage noted in its report.
The firm believes that larger Indian banks, including HDFC Bank, are well-positioned to capitalise on macro improvements. “Near-term margin pressures will be largely due to timing gap on loan repricing, but core margins (excluding rate cuts) are holding up well.”
The brokerage maintains a ‘Buy’ call with a price target of Rs 2,120, valuing the stock at 2.3x FY27 adjusted price-to-book (PB).
Jefferies on Voltas: A stock with cool potential
The brokerage has also given Voltas a ‘Buy’ rating and set a target price of Rs 1,990 per share, suggesting that the stock could rise by 42% from its current price.
With rising demand for cooling products and increasing consumer spending,
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