Shares of Turtlemint Fintech Solutions and Bajaj Housing Finance rose 4.1% and 1.5%, respectively, on August 20 after global brokerage Jefferies initiated coverage on both companies with Buy ratings.

Jefferies said the Point of Sales Person (POSP) channel is among the fastest-growing insurance distribution channels in India and currently accounts for around 6% of insurance premiums. Turtlemint is the third-largest player in the segment, with an estimated 20% market share, according to the brokerage.

Jefferies highlighted Turtlemint's granular POSP network and technology platform as key drivers of profitability. The brokerage expects the company to deliver a 38% three-year revenue CAGR, supported by a 31% CAGR in platform premiums and improving take rates. With increasing scale, Jefferies expects Turtlemint's adjusted EBITDA margin to improve to 10% by FY29 from a loss-making position in FY26.

The brokerage assigned a target price of Rs 190 to Turtlemint. The company reported a consolidated net loss of Rs 37.78 crore in Q1FY27, narrowing from Rs 46.69 crore in Q1FY26. Revenue from operations increased 40% year on year to Rs 294 crore.

Turtlemint's platform premium increased 49.8% year on year to Rs 1,205 crore in Q1FY27 from Rs 804 crore in Q1FY26. Platform premium represents the total premium and consideration received on insurance policies issued or re-issued by insurers through the company's platform. Adjusted EBITDA as a percentage of revenue improved to -9% in Q1FY27 from -20% in Q1FY26.

Turtlemint shares were trading 4.1% higher at Rs 144.65 apiece around noon on August 20.

For Bajaj Housing Finance, Jefferies said the company, India's second-largest housing finance company focused on the mass affluent segment, could deliver a peer-leading 23% AUM CAGR between FY26 and FY29. The brokerage expects spreads to moderate and bottom out in FY27, while operating leverage and lower credit costs could support earnings growth.

Jefferies also highlighted Bajaj Housing Finance's asset quality, describing it as best in class among peers, with the lowest gross Stage 3 assets. The brokerage expects a 20% EPS CAGR over FY26-FY29 and forecasts return on assets and return on equity of 2% and 13.6%, respectively, by FY29.

The brokerage assigned a target price of Rs 192 to Bajaj Housing Finance, while noting that its premium valuation of 2.6 times March 2027 book value could limit near-term upside.

Bajaj Housing Finance shares were trading 1.5% higher at Rs 86.27 apiece around 12:05 pm on August 20.