Jefferies has a Buy recommendation on Ambuja Cement, Navin Fluorine, and Voltas. The brokerage house sees up to 29% of return potential in some of these counters.

Here is a detailed analysis of why these are top picks for Jefferies

Jefferies on Ambuja Cement: Maintain Buy after meeting management

Ambuja Cements’ management remains confident of touching a cement capacity target of 140 metric tons per annum by FY28 (current 100 MTPA), with scale-up of organic additions in FY26. The cement producer updated on the cost efficiency targets, scaling up over the next few years. The management expects industry demand to recover to 7-8% in FY26. Talking about pricing, the company said it started improving in the past few months, and has generally been absorbed in the market more recently.

Jefferies maintained its Buy rating on Ambuja Cement with a target price of Rs 700, looking at an upside of 29% from the current market price. 

Jefferies on Voltas: Maintains Buy rating

The international brokerage firm, Jefferies, maintained its Buy rating on Voltas, with a slight cut in target price at Rs 1,680 per equity share from Rs 1,790. Voltas is expected to maintain its leadership in the Air Conditioner (AC) industry as AC penetration in India continues to increase. The company holds a significant share of approximately 20-21% in the Indian Room Air Conditioner (RAC) market. 

ALSO READ

However, unseasonal rain in May-June may result in a 15-20% year-on-year decline in RAC industry sales. The AC companies’ channel inventory is higher than normal for 3-4 weeks. Q1 of the last fiscal year had a high summer base. “Thus, we estimate Q1 FY26 UCP sales to decline by lower double-digits for Voltas,” said Jefferies. 

Jefferies on Navin Fluorine International: Navin Fluorine well-positioned for commissioned capex

Jefferies maintained its Buy call on Navin Fluorine with a target price of Rs 5,280. It sees an upside of 16% from the current market price. The company is well-positioned to monetise Rs 2000 crore of capex commissioned in the past 3 years by entering into LT contracts. This should improve asset turns and drive 35% EPS CAGR over FY25-FY27. A pipeline of new contracts in speciality chemicals, CDMO, and high-performance product (HPP) should fructify in FY26 and provide growth visibility FY28 onwards, said Jefferies. Despite its recent run-up, the stock has “Underperformed” the Nifty by 23% since January 2023.