1 / 9State Bank of India Ltd., Star Health Insurance Ltd., Groww, Bharat Forge Ltd., JSW Steel Ltd., Eternal Ltd. and Max Healthcare Ltd. are the seven new inclusions to Jefferies’ Bottom-up top ideas list, which includes 23 stocks with “buy” recommendations and eight underperform calls. Here is a look at the seven new additions:
2 / 9State Bank of India | Jefferies believes that SBI is well-placed to grow its loans as it leverages on lower loan-deposit ratio and stable asset quality. Over financial year 2026-2028, Jefferies sees SBI’s loans to grow at a Compounded Annual Growth Rate (CAGR) of 13%, core earnings to grow at a 12% CAGR and Return on Equity (RoE) of 15% in financial year 2027. The brokerage said that valuations are reasonable and has raised its target to ₹1,300 from ₹1,140 earlier.
3 / 9Groww | Billionbrains Garage Ventures, parent company of trading platform Groww, can see a 29% revenue growth CAGR over financial year 2026-2028, Jefferies stated, backed by product velocity and client assets growing with vintage. It also expects operating leverage to drive a 700 basis points improvement in Groww’s adjusted EBITDA margin and drive a 36% earnings CAGR over the next three years, according to the Jefferies note. The brokerage has a price target of ₹195 on the stock.
4 / 9Star Health Insurance | The leading private health insurer in India can grow its gross premium at a 16% CAGR until financial year 2028, aided by channel investments, rider attachments, and new product launches. The brokerage also expects loss ratio to improve, driven by stabilizing claim frequency and price hikes. The company’s IFRS loss ratio has improved by 200 basis points year-on-year for two consecutive quarters. Jefferies sees NEP / IFRS earnings CAGR of 18% and 21% by financial year 2028 and RoE to improve to 15% during the same period. The price target of ₹660 is still below the company’s IPO price of ₹900.
5 / 9Bharat Forge | Bharat Forge’s operating outlook is improving with signs of US truck cycle bottoming, better truck demand in India and easing of India-US tariff issues and continued traction in defence, Jefferies said. The brokerage wrote further that the company’s EPS growth moderated to just 12% CAGR over financial year 2024-2026, but it sees that accelerating to a 33% CAGR over financial year 2026-2028. Although Bharat Forge’s valuations are higher than their 10-year average, Jefferies believes they will sustain given the improving operational outlook and rising share of industrials and defence business in the revenue mix.
6 / 9JSW Steel | The company has become India’s largest steel producer after having rapidly expanded its capacity from 8 MTPA in FY10 to 34 MTPA in FY25. It also has plans to raise it to 42 MTPA by September-2027, led by a 5 MTPA Dolvi expansion and de-bottlenecking. Expansions are also planned in Andhra Pradesh with an aim to take the capacity to 50 MTPA by financial year 2031. Jefferies said that India flat steel spot prices may see further improvement as Asian spreads bounce back. JSW Steel’s EBITDA per tonne may expand to ₹8,500 in the December quarter to ₹11,600 in the March quarter and then to ₹14,000 by financial year 2027-2028, Jefferies said. Price target of ₹1,400 implies a premium to Tata Steel considering the former’s higher India exposure, higher EBITDA sensitivity to rising steel prices and the absence of any mine-related overhang after 2030.
7 / 9Eternal | The company’s food delivery business continues to grow at over 15% with improving profitability. “Despite high competitive intensity in the quick commerce space, Eternal’s Blinkit continues to report strong growth rates and is the only player to turn breakeven, the Jefferies note stated, adding that this comes at a time when other peers are reporting significant losses. Although the CEO transition has been a concern for some investors, Jefferies does not see that as a worry as it does not affect the near-term execution or strategy. After a 32% correction from its October 2025 peak, Eternal offers good upside from current levels, Jefferies wrote.
8 / 9Max Healthcare | Max Healthcare plans to double its bed capacity over the next 3-4 years, with majority of the expansion from brownfield additions, which will have a shorter breakeven time and higher EBITDA margins. With the government increasing rates for CHGS patients services, Max Healthcare, with a higher exposure, could see higher ARPOB and additional revenue of ₹140 crore from financial year 2027 onwards. The brokerage expects topline growth of high-teens, and EBITDA CAGR of 20%+ driven by higher volumes.
9 / 9Besides these “buy” ideas, Jefferies has included Hyundai Motor India, Cipla and Wipro as part of its “underperform” list, while upgrade its previous two bearish calls on Delhivery and Laurus Labs to “buy” and “sell” respectively.
