Global brokerage firm Jefferies has come out with a bullish outlook on three stocks, offering upside potential of up to 25%. In its latest research report, the brokerage recommends Larsen & Toubro, Bharti Airtel, and GMR Airports Infrastructure to investors watchlist. The key reasons behind the “Buy” calls to these stocks as per the brokerage are that they have strong fundamentals, margin improvements, and visibility on earnings growth .
Let’s take a look at what is driving Jefferies optimism on each of these names-
Jefferies on Larsen and Toubro
Jefferies sees a 24% upside in Larsen & Toubro (L&T), raising its target price to Rs 4,230. This “Buy” call by the brokerage is driven by the company’s performance in the June quarter and a record-high order book.
According to the brokerage, “Q1FY26 EBITDA was 7% ahead of expectations as execution was higher,” while a 33% YoY rise in order inflows provides confidence in L&T’s 10% annual growth guidance.
Jefferies believes the street is underestimating revenue potential, especially since L&T’s international business, which grew 36% YoY, has maintained stable margins.
The firm also highlighted the improvement in working capital efficiency and minimal downside risks. “Visibility with conservative guidance should drive stock,” the report noted, adding that the current stock price still lags the Nifty over the past year by about 8%.
Jefferies on Bharti Airtel
Telecom major Bharti Airtel has also made Jefferies buy list, with a target price of Rs 2,045.50, implying a 25% upside from current levels. The brokerage focused on Bharti’s standalone financials, which closely mirror its Indian operations, making up over 90% of its overall valuation.
According to Jefferies, “Bharti’s standalone EBITDA margins rose by 210bps YoY in FY25” due to tight control on network and sales costs. The company’s fuel usage per site is already the lowest in the industry, and dealer commissions have also been optimised.
“Slower growth in network operating costs have been due to strong cost controls,” Jefferies noted.
Furthermore, the report noted that the telecom operator’s free cash flow jumped 54% YoY, with FCF margins hitting their highest since FY13. The company’s debt profile has also improved, with gross debt declining 12% and limited exposure to foreign currency or floating-rate borrowings.
However, the brokerage flagged that returns still fall short of the cost of capital, making further tariff hikes critical going forward.
Jefferies on GMR Airports
Jefferies also recommends buying GMR Airports, assigning it a target price of Rs 103.70. This translates to an upside potential of 12% from the current market price. The company delivered a strong Q1 performance with a 45% YoY jump in EBITDA, helped by the new tariff structure at the Delhi airport and ongoing recovery in air travel.
“Q1 saw positive impact of new tariff at DIAL Airport,” Jefferies noted, even though traffic growth was muted due to a decline at Delhi. Notably, Hyderabad airport (GHIAL) saw 17% growth in passengers, with domestic traffic rising over 19%.
Beyond core airport operations, GMR is also expanding into adjacencies, having signed new contracts for hotel developments and cargo terminal management. The Delhi Duty-Free operations are also now fully under GMR’s control.