Jefferies Names Top Indian Stock Picks in Energy, Tech, and Healthcare

Financial services firm Jefferies has identified its top stock picks across a range of Indian sectors, pointing to companies with strong growth prospects, solid execution track records, and specific catalysts for future performance. The analysis covers key industries including energy, real estate, consumer technology, and healthcare.

Energy and Industrials in Focus

In the energy sector, Jefferies highlighted JSW Energy, projecting its capacity will increase 1.8 times to 24.7 GW by FY30. The firm anticipates a 17% EBITDA compound annual growth rate (CAGR) from FY26-30, aided by a more stable earnings profile as its share of merchant power is set to decrease to just 2%.

For specialty chemicals manufacturer Navin Fluorine International, Jefferies projects a 23% revenue CAGR and a 23% EPS CAGR between FY26-29, with EBITDA margins forecast at 31%. The firm cited new service contracts and expansion into high-value areas like semiconductor chemicals as key growth drivers.

Real Estate and Digital Consumption

Jefferies identified Lodha Developers (Macrotech), noting its position as India's largest listed developer by land bank. The firm pointed to its significant data center land bank, with management targeting Rs 20 billion in annualized lease income within five years. A consistent decline in net debt, with gearing at 0.2x, was also noted as a positive.

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For Eternal Limited (Zomato), Jefferies views the company as the best way to play India’s digital consumption growth. The report noted that its food delivery business continues to post over 17% net order value (NOV) growth, while its quick-commerce arm, Blinkit, has achieved profitability. The firm holds a BUY rating with a sum-of-the-parts (SoTP) based price target of Rs 415.

Consumer and Healthcare Outlook

Jefferies selected several companies poised to benefit from consumer and healthcare trends:

• Tata Consumer Products: The firm expects revenue and EBITDA to grow at a 10-14% CAGR over FY26-29, citing stable volume growth and margin expansion potential from lower coffee prices. The SoTP-based price target is Rs 1,450.
• Fortis Healthcare: With plans to add approximately 1,700 beds over the next four to five years, Jefferies forecasts a 15% revenue CAGR and 20% EBITDA CAGR for its hospital segment through FY29. The price target is set at Rs 1,125.
• Gland Pharma: The report highlights management's guidance for 20% total sales growth over the next four years, which is significantly above consensus estimates. Jefferies noted the U.S. market is back on a growth path for the company and set a price target of Rs 3,350.