- ICICI Prudential Life, NTPC, Coal India, Honasa Consumer, Eicher Motors, and HDFC Bank: portfolio of Jefferies India.
- The brokerage anticipates a market rebound following the December 3 announcement.
- The stock looks attractive with a 7-8 percent dividend yield and an attractive 6.6x FY25 PE ratio.
ICICI Prudential Life, NTPC, Coal India, Honasa Consumer, Eicher Motors, and HDFC Bank are among the companies that Jefferies India has added to its portfolio. Should the election outcomes line up favorably, the brokerage anticipates a market rebound following the December 3 announcement.
The capex cycle theme continues to be highly confidently held by the brokerage, with particular attention paid to the housing, power, and other industrial sectors.
Jefferies
The recent peak of the US 10-year yield fell by 60 basis points, and oil prices have stayed steady, giving retail gasoline prices a chance to decline.
According to opinion polls, the BJP may perform better than anticipated in the next state elections, winning Rajasthan and possibly gaining a higher share of the vote in other states.
For the next two years, Jefferies projects a faster growth in the demand for two-wheelers in India than for passenger cars. They recommend replacing Maruti with Eicher because of concerns about competition, which caused Eicher’s stock to lag behind the Nifty Auto Index. For India’s power story, PowerGrid was replaced by NTPC, which has an average EPS growth rate of 10%, higher than PGRD’s 6%.
India’s strong economic growth and rising power consumption have led to a sharp increase in the country’s coal volume growth. The stock looks attractive with a 7-8 percent dividend yield and an attractive 6.6x FY25 PE ratio.
Redistributing the emphasis from NBFCs to HDFC Bank and ICICI Prudential Life lessens the burden on Bajaj Finance and Chola, according to Jefferies India. Due to more enticing valuations than peers, ICICI Prudential Life was added and HDFC Bank’s status was upgraded to neutral.
