Jefferies has a ‘Buy’ rating on Polycab India, Welspun Corp and JSW Infrastructure, with target prices indicating upside of up to 34%. The brokerage sees company-specific opportunities across cables and wires, energy infrastructure, ports and logistics, with capacity additions and demand growth forming the main basis for its positive views.
Polycab remained Jefferies’ strongest call among the three on potential upside, despite the recent pressure on the stock following UltraTech Cement‘s entry into cables and wires. Welspun Corp is backed by the brokerage’s view that energy infrastructure spending in the United States and Saudi Arabia can support its growth. For JSW Infrastructure, Jefferies sees port capacity additions and expansion in logistics supporting volumes over the coming years.
1. Jefferies on Polycab India: ‘Buy’
Jefferies retained a ‘Buy’ rating on Polycab India and set a target price of Rs 11,100, indicating a 34% upside. The brokerage’s view comes after Polycab’s stock fell around 10% over five trading days following UltraTech Cement’s launch of Ultravolt cables and wires brand. Jefferies says the new entrant does not materially change its view of Polycab, as the Indian cables and wires industry has sufficient room to absorb additional supply.
The brokerage also points to barriers in parts of the cables business. Power transmission and industrial cables can require two to four years of pre-qualification, while wire sales have fewer material entry barriers. Jefferies therefore expects competitive pressure on Polycab to remain relatively contained.
“Thus, we believe there is enough headroom to accommodate a new entrant, without notably disrupting key incumbents. Polycab is the market leader in Indian C&W with aggressive market share gain,” the report added.
2. Jefferies on Welspun Corp: ‘Buy’
Jefferies initiates coverage on Welspun Corp with a ‘Buy’ rating and a target price of Rs 3,250, indicating 27% upside. The brokerage describes the company as the world’s largest welded line pipe manufacturer and sees an opportunity from higher spending on energy infrastructure in the United States and Saudi Arabia. Capacity expansion, the company’s order book and its product mix are expected to support the earnings outlook.
The United States forms a major part of Jefferies’ investment case. The brokerage says energy infrastructure spending in the country is entering a multi-year investment phase, supported by liquefied natural gas exports, rising electricity demand from data centres and increasing associated gas production from the Permian Basin. Welspun Corp already has a substantial presence in the United States and holds around 30% market share in the country’s line pipe market. Its local manufacturing footprint is also being expanded.
Saudi Arabia provides another major opportunity. Jefferies says the country’s Vision 2030 programme is driving investment in oil and gas transmission, desalination and water transportation systems. Welspun Corp has a 22% stake in Saudi-based pipe maker EPIC and is developing additional capacity through its wholly owned subsidiary in the country.
The brokerage also says Saudi Arabia’s increasing preference for local manufacturing supports Welspun Corp’s position. The company already operates line pipe capacity in the country through EPIC and is adding facilities for line pipe and ductile iron pipe production. Jefferies expects this local manufacturing footprint to improve the company’s ability to participate in energy and water infrastructure projects.
“Welspun Corp should be a beneficiary of multi-year investment phase in US energy infrastructure, driven by rising LNG exports, growing power demand from data centers, and increasing associated gas production from the Permian Basin. WLCO should also benefit from Saudi Arabia’s strong focus on gas transmission and water infrastructure under the Vision 2030 plan,” Jefferies explained.
3. Jefferies on JSW Infrastructure: ‘Buy’
Jefferies retains a ‘Buy’ rating on JSW Infrastructure with a target price of Rs 395, indicating 19% upside. Jefferies expects new port and terminal capacity, along with expansion by JSW group companies, to support volume growth.
JSW Infrastructure is targeting port capacity of 40 crore tonnes by FY30. Jefferies says operational assets and projects under development provide visibility towards this target. Potential opportunities from the government’s port privatisation programme could provide additional capacity beyond the existing plans. The brokerage also sees logistics as an important source of future growth, with the company planning a substantial increase in terminal and railway rake capacity.
Capital expenditure increased from Rs 2,100 crore in FY25 to Rs 2,500 crore in FY26. Around 85% of the spending went towards ports targeted for completion by March 2027 and new acquisitions. Spending included railway rakes, the Odisha Slurry Pipeline, Jatadhar Port and expansion at Jaigarh and Dharamtar.
The logistics business is also becoming an increasingly important part of the earnings outlook. Jefferies estimates that logistics revenue can reach Rs 5,200 crore by FY30, with a 21% margin in its estimates. The brokerage sees a sharper rise in logistics as an upside risk to its projections.
“Volume growth to be driven by new port/terminal expansion and capacity expansion by group companies to support volumes. Capacity addition by JSW group companies driving volume growth for JSW Infra,” Jefferies added.
Conclusion
Jefferies’ latest research also identified the risks that could affect each recommendation, including competitive pressure and commodity volatility for Polycab, project and capacity execution for Welspun Corp, and delays in capital expenditure and expansion plans for JSW Infrastructure.
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