Jefferies adds nine major players in buy list of India Equity strategy, including Reliance

New Delhi [India], September 11 (ANI): Jefferies, in its India Equity Strategy buy list, has made fresh inclusion of nine major players from across the sectors.
The American multinational investment bank and financial services company added, "Fresh inclusion to Buys are Reliance, Coforge, Siemens Energy, Adani Ports, AWL Agri, Sun Pharma, Mankind and GMR Airports."
In its report, Jefferies added that the Reliance Industries (Mcap: USD 214 billion) is expected to achieve double-digit EBITDA growth in FY26, driven by three main factors: a tariff hike in Jio ahead of its IPO, strong growth in Retail supported by GST cuts during the festive season, and healthy profitability in its Oil-to-Chemicals (O2C) segment, which is up 15 per cent year-on-year so far in the Financial Year 2026 (FY26).
Over FY27-28, value is expected to emerge in its FMCG, data center, and New Energy businesses, with data centers and New Energy currently seen as option value despite strong growth potential.
The company is projected to deliver an 11 per cent consolidated EBITDA CAGR from FY25 to FY28, with Jio growing at 22 per cent CAGR due to two tariff hikes planned in FY26 and FY27, and Retail growing at 14 per cent CAGR driven by store expansion and same-store sales growth.
Currently, the stock is trading below its long-term average valuation, reflecting concerns about growth and assigning no value to New Energy and data centers.
However, with clearer visibility on double-digit EBITDA growth in FY26, the valuation multiple is expected to rebound, the report added. The price target of Rs 1,670 suggests a 21 per cent upside from current levels, the report added.
On HDFC, the report added that the Bank (Mcap: USD 168 billion) is showing strong signs of returning to the lending market, supported by a drop in its loan-to-deposit ratio (LDR) from 110 per cent last year to 95 per cent now, stable asset quality--including in the SME segment--and healthy deposit growth.
The bank is expected to see deposits 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.
This improved loan growth could ease investor concerns and help the stock rerate, the report added.
Although upcoming rate cuts may temporarily reduce net interest margins (NIMs) by around 30 basis points in FY26, better loan and funding mix, stable credit costs, and improved cross-selling are expected to boost core profits over time. The bank's asset quality remains solid, particularly with better-rated customers in SME and export sectors, and credit costs are forecasted to stay between 55-65 basis points over FY26-27, the report added. (ANI)
Mahindra & Mahindra (Mcap: USD 49 billion) earns about 40 per cent of its EBIT from its farm division. After an 8 per cent decline in FY24, tractor industry sales were mostly flat in the first half of FY25 but have grown 11 per cent year-on-year over the past 12 months. The tractor industry is expected to grow at a 9 per cent CAGR between FY25 and FY28, which is slower than the 8 per cent CAGR seen over FY05-23.
Mahindra's market share in tractors has 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 report added.
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, India's passenger vehicle sales grew only 2 per cent in FY25 and dropped 1 per cent in the first quarter of FY26. However, growth is expected to pick up due to GST rate cuts, income tax reductions, and improved liquidity. The passenger vehicle industry is projected to grow at an 8 per cent CAGR over FY25-28, with SUVs expected to outperform cars, the report further added. (ANI)