Synopsis : Jefferies upgraded three stocks with Buy ratings, citing strong growth potential, strategic initiatives, and market positioning, projecting upside of 25–61%, backed by robust earnings, operational efficiency, and favorable sector trends.
One of the leading brokerage firms, Jefferies, has revised its target prices for two prominent stocks, following a detailed assessment of their recent financial performance, growth prospects, and current market trends. The updated valuations reflect the firm’s outlook on the company’s earnings potential, strategic positioning, and expected investor demand in the near term.
The brokerage sees significant upside potential, with gains ranging from 21 percent to 59 percent, based on strategic growth initiatives, capital plans, and market positioning. Analysts highlight that these companies are successfully navigating changing economic and sector-specific conditions in India, making them attractive investment options. Following are the list of stocks with a new target price
Ambuja Cement Limited
Jefferies has maintained its ‘Buy’ rating on the stock with the target price of Rs. 735, with an upside of 60.52 percent from current market price of Rs. 457.90 per equity share.
According to the Brokerage firm, the company is shifting from aggressive capacity expansion to optimizing its existing plants, integrating recent acquisitions, and improving profit per tonne of cement.
The aim is to achieve a production utilisation rate of 80–85 percent, while cost-cutting measures are reducing clinker production costs from over Rs. 2,000 per tonne to a target of Rs. 1,500 per tonne through renewable energy adoption and enhanced logistics. Jefferies notes this approach reflects a pivot from expansion-at-scale to consolidation and operational execution.
Ambuja Cements Limited is an Ahmedabad-based company that, along with its subsidiaries, manufactures, markets, and sells cement and related products in India. Its offerings include Portland pozzolana cement, ordinary Portland cement, temperature-resistant concrete blocks, Blaine Portland cement, and micro materials, catering to homebuilders, developers, infrastructure projects, masons, contractors, architects, and engineers.
With the market capitalization of Rs. 1,13,184.80 crore, the shares of Ambuja Cement Limited closed at Rs. 457.90, down by 0.95 percent from its previous day’s close price of Rs. 462.30 per equity share.
The company reported Q3FY26 revenue of Rs. 10,277 crore, marking a YoY growth of 9.2 percent from Rs. 9,411 crore in Q3FY25. Compared to the previous quarter (Q2FY26 revenue of Rs. 9,174 crore), revenue rose 12 percent QoQ, indicating a strong sequential recovery.
Net profit declined sharply to Rs. 367 crore in Q3FY26, a YoY drop of 86.2 percent from Rs. 2,663 crore in Q3FY25 and 84 percent lower than Q2FY26’s Rs. 2,302 crore, primarily due to lower EBITDA and higher expenses, signaling significant profitability challenges in the quarter.
AU Small Finance Bank Limited
Jefferies has maintained its ‘Buy’ rating on the stock with the target price of Rs. 1,220, implying an upside of 32.90 percent from current market price of Rs. 917.95. According to the brokerage firm, regulatory relief from the central bank allows the bank to avoid creating a new holding company unless it starts non-banking businesses, enabling it to focus on transitioning into a universal bank.
This status is expected to attract wealthier clients, large corporates, and high-quality deposits, while boosting earnings from services like credit cards and foreign exchange. Analysts believe this strategic shift will strengthen the bank’s brand and improve profitability over the next three to five years.
AU Small Finance Bank Limited, headquartered in Jaipur and incorporated in 1996, offers a wide range of banking and financial services across India. Operating through treasury, retail, wholesale, and other banking segments, it provides deposit accounts, loans for vehicles, homes, businesses, and agriculture, insurance, mutual funds, digital banking, payment services, and government banking solutions. The bank serves individuals, SMEs, NRIs, professionals, corporations, and government institutions.
With the market capitalization of Rs. 68,671.02 crore, the shares of AU Small Finance Bank Limited closed at Rs. 917.95, down by 2.15 percent from its previous day’s close price of Rs. 938.10 per equity share.
AU Small Finance Bank reported a net interest income of Rs. 2,341 crore in Q3 FY26, marking a 16 percent year-on-year increase from Rs. 2,023 crore in Q3 FY25 and a 9 percent rise sequentially from Rs. 2,144 crore.
On the profitability front, the bank posted a net profit of Rs. 668 crore in Q3 FY26, increased by 26 percent from Rs. 528 crore a year earlier in Q3 FY25 and 19 percent quarter-on-quarter from Rs. 561 crore in Q2 FY26.
Uno Minda Limited
Global brokerage Jefferies has turned bullish on Uno Minda, initiating coverage with a ‘Buy’ rating. The analysts highlight the company as a growth amplifier, with strong exposure to the Indian auto sector through a well-diversified, largely powertrain-agnostic portfolio and around 90 percent domestic sales.
The brokerage has set a target price of Rs. 1,350, implying an upside of around 24 percent from its CMP. The stock’s premium valuation reflects confidence in Uno Minda’s operational efficiency, robust growth prospects, and market positioning.
Growth and Earnings Outlook
Jefferies expects earnings per share (EPS) to grow at 25 percent annually, with an average return on equity (ROE) of 20 percent over FY26–28. While the stock trades at 42x FY27 earnings, close to its five-year average, analysts believe the valuation is justified due to stable margins, high returns, and strong growth potential.
Diversified Portfolio and Industry Tailwinds
Uno Minda’s portfolio includes lighting, switches, castings, seating, acoustics, EV parts, and sensors, with balanced exposure to passenger vehicles and two-wheelers. Jefferies remains positive on Indian auto demand, supported by economic growth, GST cuts, easing liquidity, and upcoming government wage hikes, which could drive 9 percent production CAGR for PVs and 2Ws over FY26–28.
Strong Margins, ROE, and Cash Flow
The company has maintained EBITDA margins between 10.7–12.3 percent, with analysts projecting 11.2–11.8 percent over FY26–28. Uno Minda has also delivered a healthy ROE of 19–21 percent and strong operating cash flow, while Jefferies expects positive free cash flow and declining net debt-to-EBITDA by FY28, reflecting a solid balance sheet.
Uno Minda Limited is a Gurugram-based company that, along with its subsidiaries, manufactures and supplies a wide range of automotive components and systems in India and internationally. Its products include alloy wheels, switches, horns, infotainment systems, sensors, actuators, telematics, EV components, automotive seats, batteries, braking systems, air filtration systems, and interior accessories for 2-wheelers, 3-wheelers, 4-wheelers, EVs, off-road, and commercial vehicles.
With the market capitalization of Rs. 62,441.74 crore, the shares of Uno Minda Limited closed at Rs. 1,081.40, up by 3.05 percent from its previous day’s close price of Rs. 1,115.45 per equity share.
Uno Minda Limited reported Q3FY26 revenue of Rs. 5,018 crore, up 19.9 percent YoY from Rs. 4,184 crore in Q3FY25 and 4.2 percent QoQ from Rs. 4,814 crore in Q2FY26, reflecting steady growth in automotive and EV component sales.
Net profit for Q3FY26 was Rs. 300 crore, up 18.1 percent YoY from Rs. 254 crore in Q3FY25, though down 7.1 percent QoQ from Rs. 323 crore in Q2FY26, suggesting some margin pressure despite higher revenue and EBITDA.
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