1 / 11Brokerage firm Jefferies believes that with the Nifty having corrected 13% from its peak and the broader markets having corrected over 20% from their respective highs, the market is due for a near-term bounce.
2 / 11Jefferies has based its thesis on the fact that the market correction has brought the Nifty valuation close to its long-term average and the fact that the market has ignored positive triggers like RBI easing, liquidity infusion, government spending, income tax cuts in the budget and reasonable valuations.
3 / 11Based on this, Jefferies recommends buying eight stocks based on the following criteria – stocks that are below their 10-year average, have growth visibility, which is a 14% Earnings Per Share (EPS) growth potential and for which, downgrades were minimal in the last two quarters (less than 5%). Here are those names.
4 / 11Adani Ports | The Adani Group stock has corrected over 30% from its recent peak and Jefferies has a “buy” rating on the stock with a price target of ₹1,440, which implies a potential upside of 34% from current levels.
5 / 11Shriram Finance | The Nifty constituent also gets a “buy” rating from Jefferies with a price target of ₹710, which implies a potential upside of 22% on the stock. Shares are down 20% from their peak.
6 / 11Apollo Hospitals | Despite a 16% drop from its recent highs, Jefferies has maintained its “buy” rating on India’s largest hospital chain, indicating a potential upside of 27% from current levels.
7 / 11HDFC AMC | HDFC AMC is another stock that has corrected over 20% from its recent highs. However, it fits the Jefferies criteria highlighted above as a result of which the brokerage has a “buy” rating on the stock with a price target of ₹4,900, indicating a potential upside of 30% from current levels.
8 / 11Crompton | Jefferies sees a 46% upside potential on the stock as it has a price target of ₹480 with its “buy” rating. The stock has also corrected by nearly a third from its peak.
9 / 11Aptus | Aptus shares are down 25% from their peak. Jefferies has a “buy” rating with a price target of ₹420, implying a potential upside of 30% from current levels.
10 / 11Home First Finance | Shares of Home First have also corrected by a third from their peak. The stock has a “buy” rating from Jefferies with a price target of ₹1,325, implying a 44% potential upside on the stock.
11 / 11Syrma SGS | Among this list, Syrma SGS shares have the highest potential upside from Jefferies at 60%. The brokerage has a “buy” rating with a price target of ₹690. The stock has corrected 34% from its peak.
