Jefferies has rolled out a fresh investment theme it calls the "25% CAGR club", naming five Indian financial companies it believes can deliver compound annual growth rates of around 25% over the FY26‑29 horizon. The list includes digital payments leader Paytm, online wealth‑tech platform Groww, payment gateway PB Fintech, AU Small Finance Bank and Poonawalla Fincorp. By targeting firms that combine scale, new business initiatives and operating leverage, the brokerage expects a sustained boost in earnings and top‑line growth.
The recommendation arrives as the Nifty Financial Services index has been in a modest uptrend, buoyed by improving credit quality and higher consumer demand for digital financial services. For retail investors, the picks offer exposure to both traditional banking – through AU Small Finance – and fast‑growing fintech segments represented by Paytm and Groww. Jefferies maintains a Buy call on each stock, signalling confidence that the sector’s earnings momentum will outpace broader market growth.
Analysts point to several catalysts: Paytm’s expanding merchant ecosystem, Groww’s increasing AUM, PB Fintech’s rising transaction volumes, AU Small Finance’s branch network expansion, and Poonawalla Fincorp’s diversification into insurance and housing finance. If these drivers materialise, the firms could see revenue multiples rise, translating into higher shareholder returns. For the average Indian investor, the thesis suggests a balanced bet on the financial sector’s growth story, with potential upside that could outstrip many large‑cap equities, provided the macro environment remains supportive and credit risk stays contained.