Jefferies recommends investing in Financials, Consumer Staples, Industrials, Utilities, and Real Estate segments for June stocks. The global brokerage firm is overweight on all these segments, with Financials being its top pick. Jefferies believes that it can maintain its strong growth, better asset quality, and high RoE. The brokerage is underweight on IT, Energy, Telecom, and Consumer Discretionary segments.
Here are the stocks that Jefferies has placed its bets on:
Financials: ICICI Bank, Axis Bank, IndusInd Bank, HDFC Life, Bajaj Finance, and Cholamandalam Finance.
Consumer Staples: Godrej Consumer Products and Jyothy Labs.
Industrials: Metropolis and Metro.
Real Estate: Macrotech and Godrej Properties.
Jefferies’ model portfolio has the highest weightage of 39.8 points on Financials. It also has a strong belief in ICICI Bank, followed by Axis Bank. The brokerage recently upgraded Axis Bank to its top pick, as its franchise is strengthening, and it is on track with high growth and stable RoE. Jefferies is also excited about the merger of Citibank’s Indian retail platform with Axis Bank.
In the Consumer Staples segment, Jefferies has placed its bets on Godrej Consumer Products and Jyothy Labs. The brokerage believes that Godrej Consumer Products’ new management team is focusing on category development and business simplification, which could lead to strong growth. Jyothy Labs is also expected to improve its margins and profitability.
Jefferies is also bullish on Metropolis and Metro in the Industrials segment. Metropolis’ land value could increase after the completion of some major infrastructure projects, which could lead to a surge in its land prices. Metro is working on a strategy of buying expensive land at a cheaper price, which could improve its balance sheet.
In the Real Estate segment, Jefferies has placed its bets on Macrotech and Godrej Properties. Macrotech’s land bank has the potential to increase in value, while Godrej Properties is working on a strategy of buying
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