Jefferies Names 8 Top Indian Stock Picks Across Automotive, Defense, and Metals

Jefferies has identified eight top stock picks in India, highlighting companies with strong growth trajectories, expanding market share, and robust order books. The investment bank's selections span the automotive, industrial, metals, energy, defense, and infrastructure sectors, signaling broad opportunities in the Indian market.

Key Selections and Rationale

In a research note, Jefferies outlined its picks based on catalysts such as significant capacity expansion, recovering demand in key export markets, and strong domestic tailwinds. The firm projects substantial earnings growth for these companies over the next several fiscal years.

The eight companies selected by Jefferies are:

• TVS Motors (TVSL IN): Automotive
• Bharat Forge (BHFC IN): Industrials & Defense
• JSW Steel (JSTL IN): Metals
• Hindustan Zinc (HZ IN): Metals & Mining
• Siemens Energy India (ENRIN IN): Energy & Industrials
• Hindustan Aeronautics (HNAL IN): Defense & Aerospace
• Adani Ports (ADSEZ IN): Infrastructure
• Emmvee Photovoltaic (EMMVEE IN): Renewable Energy

Industrial and Automotive Momentum

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For TVS Motors, Jefferies noted the two-wheeler manufacturer has achieved a 21% domestic market share year-to-date for fiscal 2027, a 23-year high. The bank forecasts a 24% earnings per share (EPS) compound annual growth rate (CAGR) for the company over fiscal 2026-2029.

Bharat Forge is benefiting from a sharp rebound in North American heavy truck orders, which grew 104% in the calendar year to date, according to the note. Jefferies also pointed to the company's large defense order book of Rs112 billion and projected its EPS growth will accelerate to a 30% CAGR over fiscal 2026-2029.

Metals, Defense, and Energy Outlook

In the metals sector, Jefferies highlighted JSW Steel's plan to expand its capacity to 80 million tons by fiscal 2032, which would place it among the top three global producers. The firm expects JSW Steel's EPS to triple over fiscal 2026-2029. Hindustan Zinc was also selected, with zinc prices having risen 35% since March; Jefferies projects 54% year-over-year EPS growth for the company in fiscal 2027.

Defense giant Hindustan Aeronautics was noted for its substantial Rs2.5 trillion order book and a pipeline of Rs1.8 trillion. In the energy space, Siemens Energy India's order book stands at Rs191 billion, up 16% year-over-year, with Jefferies forecasting a 43% EPS CAGR over fiscal 2025-2028.