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Jefferies’ February 2026 top stock picks highlight strong upside potential across insurance, capital markets, banking, auto, and pharma sectors. Explore detailed financial analysis, valuation metrics, growth drivers, and sector outlook for informed investment decisions.
Global brokerage firm Jefferies has released its February 2026 India conviction list, highlighting five high-potential stocks across structurally strong sectors of the Indian economy.
The top picks include:
These companies span insurance, capital market infrastructure, banking, auto, and pharmaceuticals — reflecting Jefferies’ bullish stance on India’s domestic demand strength, financial deepening, rural recovery, and specialty pharma expansion.
Below is a comprehensive financial, valuation, and strategic analysis of each company, along with macro context and sector outlook for 2026.
Go Digit General Insurance – Digital Insurance Growth Engine
Investment Thesis
Jefferies assigns ~38% upside potential, supported by:
Business Model Overview
Go Digit operates across:
Its key differentiator lies in technology integration — AI-powered claims assessment, faster settlements, and low operating expense ratios.
Financial Snapshot (FY25E)
| Metric | Estimated Value |
|---|---|
| Gross Written Premium (GWP) | ₹9,000–10,000 Cr |
| Premium CAGR (3Y) | 28–32% |
| Combined Ratio | ~102–104% |
| Solvency Ratio | 1.8–2.0x |
| Net Profit Margin | 6–8% |
| ROE | 14–16% |
Growth Catalysts
Risks
If combined ratio improves below 100% while premium growth sustains above 25%, operating leverage can significantly boost profitability.
KFin Technologies – Financial Infrastructure Compounder
Investment Thesis
Jefferies sees 32–40% upside backed by recurring revenue, rising SIP inflows, and strong operating leverage.
Business Overview
KFin is a leading:
Financial Snapshot (FY25E)
| Metric | Estimated Value |
|---|---|
| Revenue | ₹850–900 Cr |
| EBITDA Margin | 38–42% |
| PAT Margin | 22–25% |
| ROE | 28–32% |
| Net Debt | Minimal |
Growth Drivers
High free cash flow and scalable margins make KFin structurally attractive.
Axis Bank – Private Banking Re-Rating Candidate
Investment Thesis
Target price ₹1,278.80 with strong retail loan momentum and improving asset quality.
Financial Snapshot (FY25E)
| Metric | Estimated Value |
|---|---|
| Net Interest Margin | 4.0–4.2% |
| Gross NPA | ~1.5% |
| Net NPA | <0.4% |
| ROA | 1.7–1.9% |
| ROE | 16–18% |
| CASA Ratio | ~45% |
Strengths
If ROE sustains above 17%, valuation expansion is possible.
Mahindra & Mahindra – SUV & Rural Recovery Play
Investment Thesis
Target price ₹3,629.95 with ~19% EPS growth potential.
Financial Snapshot (FY25E)
| Metric | Estimated Value |
|---|---|
| Revenue | ₹1.5–1.6 Lakh Cr |
| EBITDA Margin | 14–16% |
| ROE | 18–20% |
| Net Debt/Equity | <0.5x |
Growth Catalysts
M&M remains a cyclical yet structurally strong auto player.
Alkem Laboratories – Specialty Pharma & MedTech Expansion
Investment Thesis
Jefferies estimates ~22% upside driven by MedTech scaling and specialty drug portfolio growth.
Financial Snapshot (FY25E)
| Metric | Estimated Value |
|---|---|
| Revenue | ₹12,000–13,000 Cr |
| EBITDA Margin | 20–23% |
| ROCE | 18–22% |
| US Revenue Mix | ~30% |
Growth Drivers
Regulatory risks and US pricing pressure remain key watch points.
Comparative Financial Metrics
| Company | Revenue Growth | ROE | Margin Profile | Risk Level |
|---|---|---|---|---|
| Go Digit | 25%+ | Moderate | Improving | Medium-High |
| KFin Tech | 15–20% | High | Strong | Medium |
| Axis Bank | ~15% | Improving | Stable | Medium |
| M&M | 15–18% | Strong | Expanding | Medium |
| Alkem | 12–15% | Stable | Improving | Medium |
Sector Outlook 2026
Insurance
Underpenetrated market with long-term structural growth opportunity.
Capital Markets
Financialization accelerating; SIP flows and retail participation rising steadily.
Banking
Retail-led credit cycle healthy; asset quality stable.
Auto
SUV premiumization and rural recovery driving momentum.
Pharma
MedTech scaling and specialty focus supporting margin expansion.
Investment Strategy Perspective
This basket offers:
A diversified mix balancing growth and stability themes.
Final Verdict
Jefferies’ February 2026 picks reflect confidence in India’s domestic growth story. Upside potential ranges from 22% to 40%, but investors must evaluate valuation comfort, risk tolerance, portfolio balance, and time horizon (3–5 years recommended).
A staggered allocation strategy may help reduce timing risk.
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