Jefferies has reaffirmed its positive view on three companies across the automobile, metals and infrastructure sectors after assessing their latest quarterly performance and long-term growth prospects. The brokerage has retained a ‘Buy’ rating on TVS Motor, Shyam Metalics and JSW Infrastructure while raising target prices for all three stocks.
Jefferies said healthy earnings momentum, sustained capacity expansion and favourable sector trends continued to support its positive stance on the companies.
Jefferies on TVS Motor: ‘Buy’
Jefferies has reiterated its ‘Buy’ rating on TVS Motor Company and raised its target price to Rs 4,900 from Rs 4,500, implying an upside of 29%. The brokerage also increased its earnings per share estimates for FY27 to FY29 by 4% to 5% after the company delivered a stronger-than-expected June quarter performance.
The brokerage said demand continued to remain healthy in both domestic and overseas markets. It noted that two-wheeler wholesale growth accelerated during the second half of FY26 and remained strong during the June quarter, while registrations and exports also maintained healthy momentum.
Jefferies expects the domestic two-wheeler industry to record double-digit growth during FY27 and projected an 8% compound annual growth rate for the industry between FY26 and FY29. It also expects TVS Motor’s exports to grow at 14% annually between FY26-FY29 on a compounded basis.
Jefferies added that TVS Motor Company’s market position continued to strengthen. The brokerage said the company’s domestic two-wheeler market share reached a 23-year high of 20% during the first quarter of FY27 despite softer demand for mopeds. It also pointed out that it had almost doubled its market share in motorcycles and internal combustion engine scooters over the past decade while establishing a 25% share in electric two-wheelers. Jefferies expected this stronger market position to support sustained earnings growth over the medium term.
The brokerage acknowledged that investments in subsidiaries remained elevated and profitability from those businesses would remain an area to monitor. Even so, it expects TVS Motor to deliver a 13% volume compound annual growth rate and a 24% earnings per share compound annual growth rate between FY26 and FY29. “Two-wheeler demand is growing strong in both India and export markets, and we like TVS’ improving franchise. Peak of margin concern also seems behind,” Jefferies said.
Jefferies on JSW Infrastructure: ‘Buy’
Jefferies has retained its ‘Buy’ rating on JSW Infrastructure and increased its target price to Rs 400 from Rs 370, implying an upside of 15%. The brokerage revised its earnings per share estimates for FY27 to FY29 by 2% to 3% after the company reported a resilient June quarter despite a softer performance in its logistics business.
Jefferies said port earnings before interest, taxes, depreciation and amortisation rose 10% year-on-year and were 2% ahead of its estimate, supported by healthy cargo volumes and strong operational performance.
Jefferies said the company’s expansion plans remained firmly on track and continued to underpin its long-term growth outlook. It added that management remained confident of increasing overall capacity by around 60% by March 2027 and reiterated its long-term target of expanding capacity to 400 million tonnes by FY30. The brokerage also remained constructive on the outlook for the logistics business despite the temporary weakness during the June quarter. Jefferies said earnings from the segment were expected to improve over the coming quarters as operations at Navkar normalised and recently added railway rakes and inland container depots contributed to higher throughput. Jefferies added that the company continued to benefit from a diversified cargo mix and a healthy pipeline of expansion projects across ports and logistics.
“Management targets 60% capacity addition by March 2027, where project progress is on track. The target of increasing capacity to 400 million tonnes by FY30 also remains intact,” Jefferies said.
Jefferies on Shyam Metalics: ‘Buy’
Jefferies has also retained its ‘Buy’ recommendation on Shyam Metalics and Energy and revised its target price to Rs 1,250 from Rs 1,150, indicating an upside of 17%. The brokerage raised its earnings per share estimates for FY27 to FY29 by 2% to 4% after the company reported a stronger-than-expected June quarter.
Jefferies said the company’s expansion programme remained central to its long-term growth outlook. The brokerage noted that Shyam Metalics & Energy was undertaking capital expenditure of around Rs 10,000 crore to expand capacity across multiple product categories.
By FY30, the company plans to more than double carbon steel capacity to 4.4 million tonnes per annum, expand stainless steel capacity to 0.85 million tonnes per annum, increase sponge iron capacity to 4.1 million tonnes per annum and raise pig iron capacity to 1.5 million tonnes per annum.The brokerage added that a richer product mix should support profitability over the coming years. Jefferies expected increasing contributions from stainless steel, cold rolled steel and special bar quality products to improve margins over time. It expected Shyam Metalics & Energy to deliver a 15% earnings per share compound annual growth rate between FY26 and FY29 while pursuing its target of nearly tripling earnings before interest, taxes, depreciation and amortisation by FY31.
“We continue to like company’s strong growth focus. SHYAMMET aims to triple its EBITDA by FY31,” Jefferies said.
Conclusion
Jefferies continues to see attractive investment opportunities across automobiles, metals and infrastructure, backed by company-specific growth drivers and improving earnings visibility. The brokerage expects TVS Motor Company to benefit from strong domestic and export demand, rising market share and healthy earnings growth.
It believes Shyam Metalics & Energy is well positioned to deliver long-term growth through large-scale capacity expansion and an improving product mix, while JSW Infrastructure remains supported by its expanding ports and logistics network and a robust pipeline of capacity additions.
Disclaimer: The stock recommendations, target prices, and upside estimates mentioned in this article are sourced from third-party brokerage reports (Jefferies) and are presented strictly for informational and educational purposes. They do not constitute financial advice, an endorsement, or a solicitation to buy, sell, or hold any security. Equity market investments carry inherent market risks, and target prices or past performances are no guarantee of future returns. Readers must conduct their own due diligence and consult a SEBI-registered investment advisor before taking any market positions. This disclaimer has been generated using AI to support user well-being and responsible content consumption.
