Paytm, Groww to PB Fintech: Jefferies names 5 financial stocks with 11% to 25% upside

Jefferies has identified five Indian financial companies that it expects can deliver at least 25% compound annual growth in operating profit over the next three years, while maintaining healthy revenue growth and benefiting from scale. The list comprises fintech companies Groww, Paytm and PB Fintech, along with AU Small Finance Bank and Poonawalla Fincorp, all of which carry a ‘Buy’ rating from the brokerage.

In its report titled The 25% compound annual growth rate (CAGR) Club of Indian Financials, Jefferies said the five companies can compound growth despite their relatively higher valuations.