Jefferies, IIFL Finance, Macquarie, CLSA, and Goldman Sachs have recently begun coverage on several key companies, providing buy recommendations and target prices that underscore their growth potential. Groww, recognized as India’s largest broker by active clients, is on track to achieve a 35% compounded annual growth rate in earnings per share by 2028. Additionally, Firstsource Solutions and Lenskart are spotlighted for their robust market positions and innovative strategies. Analysts express optimism about these firms, indicating considerable opportunities for growth in the near future.
Jefferies’ Positive Outlook for Groww
Jefferies has initiated coverage of Groww with a buy recommendation and a target price of Rs 180. Analysts note that Groww has quickly established itself as the largest broker in India by active clients since its inception in FY21. They forecast an impressive 35% CAGR in earnings per share (EPS) from FY26 to FY28, driven by a 19% increase in its broking business, supported by client retention and market share gains. New initiatives like margin trading and wealth management are expected to expand fivefold. Furthermore, analysts predict a substantial margin expansion of 700 basis points, reinforcing Groww’s competitive edge in the brokerage sector.
IIFL Finance’s Coverage of Firstsource Solutions
IIFL Finance has started coverage of Firstsource Solutions with a buy recommendation and a target price of Rs 420. According to analysts, Firstsource is the largest and most diversified pure-play BPO services provider in India, reporting annualized revenues exceeding $1 billion. This favorable positioning enhances the company’s scale and agility. The firm’s UnBPO strategy is reshaping the BPO landscape by prioritizing technology-driven solutions over traditional scale and labor arbitrage. Notably, more than 50% of Firstsource’s revenue now follows an outcome-based pricing model, reflecting a commitment to delivering measurable results. Recent leadership changes under the new CEO, following the One Firstsource Strategy, have resulted in a significant uptick in large deal acquisitions, with quarterly wins increasing from one in FY24 to four or five by FY26.
Macquarie’s Assessment of Lenskart
Macquarie has rated Lenskart as an outperformer, establishing a target price of Rs 530. Analysts identify Lenskart as India’s leading eyewear retailer, benefitting from an integrated supply chain that strengthens its competitive position in cost, design, and efficiency. The company boasts a strong growth trajectory and aims to capture a larger market share, potentially expanding from its current 5% to over 40%, as observed in other countries. Improved supply chain utilization is anticipated to enhance the company’s EBITDA margin to approximately 33% at the store level. Lenskart also intends to triple its return on invested capital to over 20% by FY26-FY28, showcasing a solid growth strategy.
CLSA and Goldman Sachs’ Insights on Other Companies
CLSA has issued a hold rating for Voltas, with a target price of Rs 1,170. Analysts point out that demand for room air conditioners (RAC) improved sequentially in Q3FY26, despite possibly declining on an annual basis. They highlight high inventory levels, indicating 40–45 days of stock compared to 20–25 days last year. The company’s pricing strategy is under review, with various factors being evaluated for future adjustments. Analysts believe that a recovery in RAC demand and potential price hikes will be critical for Voltas in the near term.
Goldman Sachs has rated Max Healthcare as a buy with a target price of Rs 1,325. The company has announced its entry into the Pune market through the acquisition of Yerawada Properties, which will be conducted in phases. The first phase involves acquiring 100% of Class A equity shares, providing full voting rights and a 50.22% economic interest in the property. Max Healthcare’s board has also approved the establishment of a 450-bed super specialty hospital on the procured land, reflecting its commitment to expanding healthcare services in the region.
Disclaimer: Digihunt is not a financial advisor and this is not investment advice.