Jefferies has identified five financial companies with market capitalisation of around or above $5 billion that could deliver 25% CAGR in operating profit over the next three years, supported by healthy revenue growth and economies of scale. The foreign brokerage has rated all five as Buys, expecting strong earnings compounding to drive investor returns despite their relatively higher valuations.
Jefferies, with a Buy call, has pegged the target price at Rs 240, an upside of 23% from current levels. Analysts say the company has several levers to drive 30% PAT CAGR over FY26-29. New initiatives like margin trading facility & wealth management bode well for the stock. Further, Groww is adding US stocks later in FY27, which could add 5-9% to FY28e earnings.
The brokerage has a Buy call and a target price of Rs 2,100 (21% upside). The company stands out on monetisation of its client base in near-zero MDR regime, which is now changing favourably. Its 49 million merchant base and strong loan-origination model should drive 25% revenue CAGR over FY26-29, which will aid sharp rise in EBITDA and profit.
The brokerage has assigned a target price of Rs 2,050 (14% upside) as it believes digital brokers are gaining from rising insurance penetration and customer shift to online channels. PB Fintech operates India's largest online insurance platform and should witness 35% CAGR in premiums over FY26-29. Strong operating leverage and growing renewal book should drive 4x adjusted EBITDA expansion over FY26-29.
With a stock price target price of Rs 1,250, the brokerage forecasts an upside of 17%. The lender will transition from a small-finance bank to a Universal bank that can lower funding cost, lift fees and strengthen brand to aid growth. Over FY26-29, strong deposit growth will aid credit growth of 22% CAGR and 29% in PPP (ex-treasury), highest in its coverage.