The global brokerage firm Jefferies has issued Buy ratings on three Indian companies. According to the brokerage report, Polycab, Torrent Pharmaceuticals, and Ambuja Cements offer potential upsides ranging between 10% and 22%, with targeted growth stories in infrastructure, healthcare, and building materials, respectively.
Let’s take a look into the rationale behind these calls and what makes these stocks Jefferies top recommendations at this hour.
Jefferies on Polycab India
Jefferies has maintained a Buy rating on Polycab India, with target price of Rs 7,150, a potential upside of 10% from current levels. The brokerage expects the company to benefit from a demand cycle in India’s Cables & Wires (C&W) industry, backed by capacity expansion and a growing domestic capex pipeline.
According to the brokerage report, “Incremental demand for the C&W industry in the next five years could continue to outpace supply.” Jefferies noted that India’s top five organized players such as Polycab, KEI, Havells, Finolex Cables, and RR Kabelnhave announced or planned cumulative capex of Rs 100 – 105 billion over the next three years.
Jefferies estimates +22% sales CAGR in the C&W segment between FY25-28, led primarily by volume growth.
While exports currently account for just 6% of sales, Jefferies pointed out that India has the potential to increase its global share in the $270-290 billion C&W market. Currently, Mexico and China dominate exports to the US; India lags with a sub-5% share.
“We estimate FY25-28e EPS CAGR at +26%, driven by volume growth and FMEG margin improvement,” Jefferies said, valuing the stock at a PE multiple of 33x, in line with its five-year historical average.
Jefferies on Torrent Pharmaceuticals
Jefferies has given a Buy call on Torrent Pharmaceuticals with a target price of Rs 3,740, implying a 12% upside. The stock has entered the spotlight following Torrent’s recent announcement to acquire a controlling stake in JB Chemicals & Pharmaceuticals (JB Pharma).
As per the brokerage report, the acquisition will be executed in two phases, that is, purchase of 46.39% stake from KKR (JB Pharma promoter) at Rs 1,600/share and an open offer to acquire up to 26% additional stake at Rs 1,639.18/share
Torrent has also expressed intent to acquire 2.8% stake from employees, potentially pushing its ownership closer to 100%.
The entire acquisition will be funded through debt with no equity dilution, which the brokerage believes will help maintain earnings stability. “EPS accretion is expected by FY28 under a 40% MTO scenario or by FY29 under 100% MTO,” the brokerage noted.
Jefferies estimates net debt to EBITDA to range between 1.8x and 2.8x by FY27, depending on how much of the open offer is subscribed, with borrowing costs remaining below 8%.
Jefferies on Ambuja Cements
Jefferies has issued a Buy rating on Ambuja Cements with a target price of Rs 700, implying a significant 22% upside. The brokerage is bullish on Ambuja’s transformation under the Adani Group, focusing on cost optimisation, capacity expansion, and a long-term vision to become a “Building Materials Solutions Company.”
Jefferies highlighted that the company aims to increase renewable energy share to 60% by FY28, up from 21% in FY25. Additionally, the alternative fuel mix is targeted to reach 26% from 8%, signalling a major sustainability shift.
“Cost savings will start to percolate in FY26, with a larger component expected in FY27 and full impact by FY28,” the brokerage report noted.