'Laggards Everywhere': Jefferies Resets Portfolio; Backs Axis Bank, JSW Energy And More — Check Stock Picks
Jefferies’ fallen-stock screener filters for 'buy'-rated names that corrected more than 20%.
Jefferies says value and laggard stocks are becoming easier to spot, even as the broader market continues to rise. Despite the MSCI India index trading 11% above its 10-year average, nearly 30% of coverage stocks under Jefferies are trading below their long-term averages — opening up clearer opportunities for bottom-up stock picking, as per the note.
As part of its model portfolio reshuffle, Jefferies has added Godrej Properties, BPCL, JSW Energy and AU Small Finance Bank. It has also brought in Axis Bank and Samvardhana Motherson, while reducing exposure to ICICI Bank, NTPC, Tata Steel, Crompton Consumer and IndiGo.
Sector-wise, the brokerage remains 'overweight' on lenders, telecom, property, autos, cement and power, while staying 'underweight' on IT, staples, pharma and industrials.
Out of 237 stocks under coverage, Jefferies finds 69 trading below their 10-year average. For its valuation and growth screener, it focuses on stocks rated 'buy', trading below their long-term PE, and delivering FY25–27E earnings CAGR above MSCI India’s 13%.
Names already in the model portfolio from this list include Bharti Airtel, Adani Energy and Lodha. Jefferies now adds Godrej Properties, AU Small Finance Bank, and BPCL from this universe.
On the other hand, 108 of 237 tracked stocks are down, with 35 falling over 20%. Jefferies’ fallen-stock screener filters for 'buy'-rated names that corrected more than 20%. Its model portfolio already holds Lodha and Mankind Pharma, and it now adds JSW Energy and Godrej Properties here as well.
Model Portfolio Changes
AU Small Finance Bank is added for its strong growth outlook, improving asset quality and potential profitability boost as it transitions from a small finance bank to a universal bank.
Axis Bank replaces ICICI Bank, with Jefferies preferring Axis’ 20–25% valuation discount, improving growth and asset quality trends, and attractive valuations.
Samvardhana replaces Belrise after the latter’s sharp rally. Jefferies highlights improving operating performance, margin gains in Europe and strong momentum in non-auto businesses like aerospace and electronics.
JSW Energy replaces NTPC, with Jefferies forecasting a 42% Ebitda CAGR during FY25–28E, supported by upcoming capacity additions and recovering power demand. BPCL is added as refining strength remains supportive. Godrej Properties’ inclusion significantly lifts the brokerage’s Property sector overweight stance.
Other deletions by Jefferies include Crompton Consumer and Tata Steel, the latter due to safeguard duty delays.
