Jefferies Names Six Top Indian Stock Picks Across Key Growth Sectors

Investment firm Jefferies has identified six top stock picks in India, highlighting companies positioned to capitalize on the country's infrastructure growth, consumption trends, and strengthening business fundamentals. The selections span a diverse range of key sectors including materials, technology, telecommunications, and hospitality.

Sector-Spanning Selections

Jefferies' list reflects a broad-based outlook on the Indian economy. The companies chosen are leaders in their respective fields, with strategic initiatives expected to drive significant earnings growth in the coming years. The selections point to opportunities beyond a single economic theme, touching on industrial expansion, digital services, and consumer travel.

The six companies highlighted by the investment firm are:

• Grasim Industries (Materials)
• Polycab (Building Products)
• Coforge (Information Technology)
• Bharti Airtel (Telecommunications)
• GMR Airports (Infrastructure)
• Indian Hotels (Hospitality)

Ad

Analyst Outlook and Projections

For each company, Jefferies provided a detailed rationale supported by financial projections and price targets, according to the report.

• Grasim Industries: The firm anticipates meaningful earnings improvement from FY27 as new ventures in paints and B2B e-commerce scale up. Jefferies projects an EBITDA CAGR of approximately 35% over FY26-29, setting a price target of ₹3,910.
• Polycab: As the market leader in organized cables and wires, Polycab is expected to see a strong EPS CAGR of 22% between FY26-29, driven by volume growth. Jefferies has a price target of ₹11,100 for the stock.
• Coforge: The IT firm is forecast to deliver an organic revenue CAGR of 15% over FY27-29, supported by a large order book and recovery in financial services. Jefferies sees a 23% EPS CAGR over the same period, with a price target of ₹2,040.
• Bharti Airtel: Citing low competition and the potential for tariff hikes, Jefferies expects 14% revenue growth in Airtel's India operations from FY26-29. The firm has a Buy rating with a ₹2,400 price target.
• GMR Airports: As the world's second-largest private airport operator, GMR is projected to achieve an EBITDA CAGR of 14% over FY26-29. The analysis follows a year where EBITDA grew 60% and the company reported positive free cash flow. Jefferies' price target is ₹135 per share.
• Indian Hotels: Benefiting from domestic travel tailwinds and an asset-light growth strategy, the company is expected to grow its EBITDA at a 15% CAGR over FY26-29. Jefferies has set a price target of ₹875 per share.