The global brokerage firm Jefferies has placed its bets on India’s evolving consumption and infrastructure plays, issuing fresh ‘Buy’ calls on stocks that it believes are expected to deliver returns.
In its latest report, Jefferies highlights Finolex Cables as a play on housing and construction, while Mahindra & Mahindra (M&M), Eicher Motors, and TVS Motor top its list in the auto pack.
According to the brokerage, “We view Finolex Cables as a good play on housing, construction. Post -18% YTD dip, PE at 22x FY26e now is at a discount to peers.”
On the auto front, Jefferies noted that while May was a mixed bag for vehicle sales, select players continued to outperform expectations.
Let’s take a look at why the brokerage has given a buy rating to Finolex cables. Also, which stocks top its auto pack list and the rationale behind it-
Jefferies on Finolex Cables
Jefferies has given a ‘Buy’ rating to Finolex Cables, calling it a strong play on India’s housing and construction boom. The brokerage has set a price target of Rs 1,235, which implies an upside of 27% from the current market price.
The stock has already declined 18% year-to-date, bringing its valuations to 22x FY26 estimated earnings, a discount to its peers.
According to the brokerage report, “Post +12-13% total price hike in FY25, Finolex Cables has taken a small price hike in end-May25.”
Q4 numbers came in slightly better than Jefferies expectations, with sales growing 14% year-on-year. The key drivers is the 7% volume growth in electrical wires and a sharp 50% rise in cables. The communication segment, especially optic fiber cables (OFC), is gaining traction. Despite a 30% volume growth in OFC, revenue was under pressure due to falling fiber prices.
The report noted, “We estimate a +19% PAT CAGR over FY25-28e, with +370bps RoCE expansion,” and sees a 18% sales CAGR in the communication segment led by BharatNet related orders, 5G rollout, and growing data center needs.
Jefferies on auto sector: Mixed momentum, but top picks are clear
On the auto front, Jefferies sees a divergence in May’s wholesale trends. While tractor and commercial vehicle (CV) segments saw growth, the passenger vehicle (PV) space showed signs of weakness, falling 1% year-on-year.
However, Mahindra & Mahindra (M&M), Eicher Motors (EIM – Royal Enfield), and TVS Motor stood out as outperformers.
Jefferies noted, “EIM (RE), MM and TVSL continue to outperform with 15-26% YoY growth,” whereas Hyundai and Tata Motors struggled with declines of 8-9%. For M&M, PV volumes surged 21% in May, making it the second-largest OEM in this segment for a second straight month. The tractor business also delivered, with an 8% YoY growth and steady market share.
Meanwhile, TVS Motor saw a strong bounce back in two-wheeler sales, and Eicher Motors maintained momentum in the premium bike segment.
Jefferies flagged these three stocks – M&M, TVS Motor, and Eicher as their top auto picks going forward, citing their resilience and growth visibility.
Jefferies on Max Financial Services
Brokerage firm Jefferies has maintained a ‘Buy’ rating on Max Financial Services, despite the recent announcement of CEO Prashant Tripathy’s early retirement, calling it “a slight set-back” but not one without a recovery plan. Jefferies has set a price target of Rs 1,700, implying an upside of 15% from current levels.
According to the brokerage report, Tripathy’s departure in September 2025 is indeed “a tad set-back,” but the focus now shifts to how smoothly the leadership transition unfolds. Adding another twist to the leadership shuffle, Rajiv Anand, Chairman of Axis Max Life and also the Deputy MD of Axis Bank, has also announced his retirement effective August 2025. While two top exits within a short span can rattle sentiment, the brokerage believes the broader outlook remains supportive.
“Sector tailwinds on regulations, some shift to Non-Par and healthy business growth can provide cushion,” Jefferies noted.