Jefferies Adds Manappuram, Hindustan Zinc, Meesho and Navin Fluorine to India Model Portfolio
Jefferies has added four stocks to its India model portfolio, citing gold monetisation, silver exposure, discretionary consumption and earnings growth, while removing Ambuja Cements and trimming Bajaj Finance and Jindal Stainless.
Jefferies Model Portfolio: Jefferies has reshuffled its India model portfolio by adding 4 stocks and removing Ambuja Cements, while trimming exposure to Bajaj Finance and Jindal Stainless, with the changes centred on gold monetisation, silver exposure, discretionary consumption and earnings growth.
Jefferies Model Portfolio: Jefferies has rejigged its India model portfolio, adding Manappuram Finance, Hindustan Zinc, Meesho and Navin Fluorine while dropping Ambuja Cements.
The brokerage has also reduced exposure to Bajaj Finance and Jindal Stainless. The portfolio changes are driven largely by Jefferies’ view that rising gold prices could unlock household wealth through greater monetisation and spending.
Jefferies India model portfolio changes
|
In |
Out / Reduced |
|---|---|
|
Manappuram Finance |
Ambuja Cements – Removed |
|
Hindustan Zinc |
Jindal Stainless – Reduced |
|
Meesho |
Bajaj Finance – Reduced |
|
Navin Fluorine |
Jefferies clarified that the stocks losing portfolio weight have not been downgraded and continue to carry a ‘Buy’ rating. The changes are therefore portfolio-construction decisions rather than a change in the brokerage’s standalone view on those companies.
Why is Jefferies betting on gold monetisation?
Jefferies estimates Indian households hold around 25,000 tonnes of gold worth close to $3.9 trillion as of March 2026. This is nearly four times the value of equities held by Indian households and represents about a quarter of total household wealth.
The value of household gold has increased by $1.9 trillion in two years as gold prices remained above $4,000 an ounce for about a year. Jefferies expects the wealth effect from higher gold prices to increasingly translate into borrowing and spending.
Organised gold-loan books have grown 73% in dollar terms over two years to an estimated $197 billion, equivalent to roughly 7% of total bank and NBFC credit. Jefferies estimates the increase in gold-loan AUM during FY26 added about 130 basis points to GDP.
However, only around 15% of household gold is currently monetised, leaving further scope for gold-backed lending through formal channels.
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Why has Jefferies added these four stocks?
Manappuram Finance is Jefferies’ preferred play on accelerated household gold monetisation through formal lending channels. The stock has a ‘Buy’ rating with a target price of ₹367.
Hindustan Zinc replaces Jindal Stainless to provide exposure to the silver theme. Jefferies has a ‘Buy’ rating on Hindustan Zinc with a target price of ₹627.
Meesho has been added as a mass discretionary consumption play. Jefferies sees potential for higher household wealth from gold to support spending. The stock has gained nearly 80% from its issue price of ₹111 but remains below its post-listing high of ₹254.
Navin Fluorine is the exception among the four additions and is not a gold-related play. Jefferies expects growth across contract manufacturing, cooling products, specialty chemicals and advanced materials, supporting a 23% EPS CAGR during FY26-29. The stock has a ‘Buy’ rating with a target price of ₹8,551.
What is the risk to the gold-driven thesis?
Higher gold prices could also increase import pressure. Gold imports, including jewellery, more than doubled from $36 billion in FY23 to $79 billion in FY26. They now account for about 2% of GDP and a tenth of India’s total import bill.
Jefferies said the monetisation of gold savings through gold-backed loans could contribute another 80 basis points to GDP growth or spending for a 10% increase in gold prices, although this could be partially offset by a higher current account deficit.
The brokerage also identified Titan, Kalyan Jewellers, MCX, IIFL Finance and Muthoot Finance as other potential beneficiaries of higher gold prices.
Conclusion: What does this mean for investors?
Jefferies’ latest portfolio reshuffle places gold monetisation at the centre of its India strategy. Manappuram Finance provides direct exposure to gold-backed lending, Hindustan Zinc adds a silver angle, Meesho captures mass discretionary consumption, while Navin Fluorine is supported by its expected earnings growth.
The key factors to watch are gold prices, the pace of household gold monetisation and the impact of higher gold imports on the current account.
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