Jefferies ‘Buy’ on RIL: Why is Jefferies bullish on RIL | Jefferies top picks in realty sector | Jefferies top picks in consumer staples | Markets News
Prominent brokerage firm Jefferies revealed that among the companies and sectors that could be favourably considered (before trading started on November 26) were Reliance Industries, real estate, consumer staples and microfinance.
Prominent US brokerage Jefferies has named its top picks from different sectors for the benefit of common investors who would consider them for investing. (Picture Credit: depositphotos)
The American financial services company and investment bank that is mostly known in India as a major brokerage has come up with a recommendation of buying RIL with a target of Rs 1,700. Incidentally, on Wednesday, November 28, 2024, it stood at Rs 1,293.40 after declining Rs 2.30 (or 0.18%). It opened at Rs 1,293.50, touched a high of Rs 1,303.85 and a low of Rs 1,286. The 52-week high of the stock is Rs 1,608.80 and the 52-week low is Rs 1,184.95.
Analysing the RIL’s business environment, Jefferies said Singapore gross refining margin will likely go up on a y-o-y basis in 2025. Jefferies noted that the closure of 1 Mbpd has been announced and it could push the company’s profits up. RIL is also expected to benefit from the robust traction in broadband subscription addition and it can lead to healthy 5G monetization. Jefferies also noted that Jio could also list next year (2025). The retail operations of RIL also did well in October. But it would take two more quarterly periods for deep-rooted improvement.
Jefferies’ on real estate
The US brokerage observed how the residential real estate market saw a boom in October, thanks to the festive season, which pushed sales to a 6-month high. Prices realised by developers, too, jumped more than 20%, and they majorly benefited listed real estate companies, which prompted firms to plan new launches. Jefferies now expects FY25 to ring in about 25% rise in pre-sales growth. Jefferies also observed that the realty index is down 11% from its peak, while some stoks have dropped by an even bigger margin. Jefferies has named Godrej Properties, Macrotech Developers (Lodha) and DLF as their top picks from this sector.
Jefferies’ on consumer staples
The July-September quarter witnessed slow revenue growth. There were also pressure on margins. Half of the 12 firms had put up performance figures that underperformed market estimates. Jefferies also named Dabur (inventory improvement), Nestle (weak volumes) and Britannia (margin decline) and Honasa particularly disappointing investor expectations and said that weak urban demand weighed on the stocks. Jefferies has named Colgate, Marico, and GCPL as the top picks in this sector.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO and/or mutual funds.)
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