Jefferies has increased its weight on the financials from an earlier 25.9 to 31 with an ‘Overweight’ stance. Its top pick remains ICICI Bank followed by Axis Bank and IndusInd Bank for respective targets of Rs 1,240, Rs 1,200 and Rs 1,750. Other picks include ICICI Prudential Life Insurance Company, Bajaj Finance, Cholamandalam Finance, SBI Cards and Payment Services.
Jefferies has also increased its weight on consumer staples (from 9.5 to 12.1), materials (from 7.1 to 8.1), industrials (from 6.5 to 9), utilities (from 3.8 to 4.6) and real estate (from 0.6 to 3.6).
The brokerage firm is bullish on Godrej Consumer Products (GCPL) and food delivery app Zomato. Jefferies is betting big on GCPL on the turnaround under the new CEO Sudhir Sitapati and expects initiatives undertaken by him to yield results over the medium term.
In the auto space, Jefferies picked TVS Motors and Tata Motors while Larsen & Toubro (L&T), Cummins and Thermax are its top picks from the capital goods, power and logistics space. The target for L&T is Rs 3,050 while it is Rs 3,085 for Thermax.
Among the real estate counters, Macrotech (target: Rs 860) and Godrej Properties find favour with Jefferies while Navin Fluorine makes a cut in the chemicals space.
Jefferies has also listed its top picks in the midcap space with buy recommendations on Kajaria Ceramics (target: Rs 1,620 ) and Amber Enterprises (target: Rs 3,390).The brokerage maintains an ‘Underperformance’ on Tech Mahindra, Tata Power, Cummins (target: Rs 1,600), Gujarat Gas, Hindustan Petroleum Corporation (HPCL) and Asian Paints.
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