New Delhi [India], September 11 (ANI): Jefferies has updated its India Equity Strategy buy list with the inclusion of nine major players across various sectors. The newly added companies are Reliance, Coforge, Siemens Energy, Adani Ports, AWL Agri, Sun Pharma, Mankind, and GMR Airports.
The report highlighted Reliance Industries (Mcap: USD 214 billion), projecting double-digit EBITDA growth in FY26. This growth is expected to be driven by a tariff hike in Jio ahead of its IPO, strong retail performance supported by GST cuts during the festive season, and robust profitability in its Oil-to-Chemicals (O2C) segment, which has risen 15 per cent year-on-year so far in FY26. Over FY27-28, value is expected from its FMCG, data center, and New Energy segments, with data centers and New Energy considered option value despite their strong growth potential. The company is forecasted to deliver an 11 per cent consolidated EBITDA CAGR from FY25 to FY28, with Jio growing at 22 per cent CAGR due to planned tariff hikes and Retail growing at 14 per cent CAGR through store expansion and same-store sales growth. Currently trading below its long-term average valuation, the stock is expected to see a rebound with a price target of Rs 1,670, suggesting a 21 per cent upside.
HDFC Bank (Mcap: USD 168 billion) is showing strong signs of returning to the lending market, aided by a drop in its loan-to-deposit ratio (LDR) from 110 per cent last year to 95 per cent now, stable asset quality, and healthy deposit growth. Deposits are expected to grow at a 16 per cent CAGR and loans at 12 per cent CAGR between FY25 and FY28, with the LDR improving to 87 per cent by March 2028. Although upcoming rate cuts may temporarily reduce net interest margins by around 30 basis points in FY26, improved loan and funding mix, stable credit costs, and enhanced cross-selling are expected to boost core profits.
Mahindra & Mahindra (Mcap: USD 49 billion) derives about 40 per cent of its EBIT from its farm division. Tractor industry sales, after an 8 per cent decline in FY24, were largely flat in the first half of FY25 but grew 11 per cent year-on-year over the past 12 months. The tractor industry is projected to grow at a 9 per cent CAGR between FY25 and FY28. Mahindra’s market share in tractors increased from 40 per cent in FY19-22 to 43 per cent in FY25 (45 per cent in 1Q), with total tractor volumes, including exports, forecasted to grow at 9 per cent CAGR over FY25-28.
The remaining 60 per cent of Mahindra’s EBIT comes from its auto business. After a strong 16 per cent CAGR from FY21 to FY24, passenger vehicle sales grew only 2 per cent in FY25 and declined 1 per cent in 1Q FY26. Growth is expected to pick up due to GST rate cuts, income tax reductions, and improved liquidity, with the passenger vehicle industry projected to grow at 8 per cent CAGR over FY25-28, and SUVs expected to outperform cars. (ANI)
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