The global brokerage house Jefferies has identified three stocks where it sees significant upside from current levels. The brokerage house has picks spanning a wide range of sectors including power equipment, banking and cement.
The brokerage has issued ‘Buy’ recommendations on Hitachi Energy India, State Bank of India (SBI) and UltraTech Cement, with its price targets implying a potential upside range of 31% to 50%.
From India’s rising power transmission needs and bank loan growth to stronger cement demand, each stock has a different trigger in focus. Let’s take a look at the key reasons why the brokerage house is bullish on these stocks –
Jefferies on Hitachi Energy: Power transmission
Jefferies has retained a ‘Buy’ rating on Hitachi Energy India and set a price target of Rs 45,790, implying a 50% upside from the current market price.
India’s rising electricity demand is creating a larger need for transmission infrastructure. Jefferies believes Hitachi Energy India is positioned to benefit from this trend.
The company has an order book of around Rs 32,200 crore. This gives it significant revenue visibility for the coming years. It has also secured two large domestic high-voltage direct current (HVDC) orders worth more than Rs 19,000 crore during FY26.
HVDC projects typically see peak execution in the second and third years.
The brokerage expects earnings per share (EPS) to grow at a 54% CAGR between FY26-29.
Battery energy storage systems (BESS), data centres, renewable energy and electric vehicle adoption could provide additional demand. The company is also planning Rs 4,000 crore of capital expenditure.
Jefferies on SBI: Growth beyond traditional banking
For State Bank of India (SBI), Jefferies has maintained its ‘Buy’ rating with a price target of Rs 1,320, indicating a 36% potential upside.
The bank’s management expects loan growth of 13-15%. It is also targeting a return on equity (ROE) above 15% and return on assets (ROA) above 1%.
“Bank will focus on consistent growth & profitability and aim for 13-15% loan-growth,” according to the brokerage report.
The lender is looking at newer segments such as loans to self-employed people and professionals. It is also expanding retail current-account deposits, wealth management and digital services.
Jefferies expects SBI to deliver a 13% loan CAGR between FY26-29.
Jefferies on UltraTech: Cement demand remains the key trigger
Jefferies has also retained a ‘Buy’ rating on UltraTech Cement, with a price target of Rs 14,065, implying a 31% upside.
The company’s outlook is closely linked to India’s construction and infrastructure activity.
According to Jefferies, cement demand has performed better than expected in recent months. Demand is coming from housing, roads, railways, ports, irrigation and private-sector capital expenditure.
Management expects the Indian cement industry to grow at 7-8% annually over the next three to five years.
“Cement demand in past few months has exceeded industry expectations,” the report said.
UltraTech is also targeting volume growth ahead of the broader industry. Its domestic cement capacity is around 200 million tonnes per annum (MTPA), with utilisation at about 80%.
What investors need to watch
For Hitachi Energy, the focus is on transmission orders, renewable energy and operating leverage.
For SBI, loan growth, deposits and cross-selling remain important. UltraTech, meanwhile, could benefit from sustained cement demand and better utilisation of its expanded capacity.
However, Hitachi Energy faces potential execution delays and weaker power demand.
SBI could see pressure from credit costs and wage-related expenses. UltraTech faces higher input costs, including coal, petcoke and freight.
Disclaimer: This article is based on research reports from one or more brokerage firms and is for informational purposes only. The views, target prices, and recommendations expressed are those of the respective brokerage firms and do not reflect the official policy or position of Financial Express. This should not be construed as an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor before making any investment decisions.