The Nifty continues to face resistance around the 26,000 levels. However, with several international brokerages raising their target for the benchmark Index, are you wondering what the key sectors and stocks are to focus on? Jefferies has turned selectively optimistic this results season, maintaining Buy ratings on Lupin and Cummins India. The brokerage sees up to 19 per cent upside potential in select stocks. Jefferies said the September-quarter earnings “underline stock-specific strength” rather than broad recovery, noting that Indian markets now demand delivery over direction.
Jefferies on Lupin: ‘Buy’
Jefferies reiterated its Buy call on Lupin, assigning a target price of Rs 2,300, which implies about 17 per cent upside from the last close of Rs 1,971. The brokerage called it “another strong quarter led by the US business,” where sales rose to US$315 million, the highest since FY17. Quarterly revenue reached Rs 7,050 crore, about 8 per cent above estimates, and EBITDA grew 33 per cent year-on-year to Rs 2,138 crore, with margins expanding to 30.3 per cent from 23 per cent last year. Jefferies expects continued strength from first-to-file and complex-generic launches in FY26. “We raise FY26–FY27 EPS by 7–5 per cent and maintain a 25x one-year forward multiple to reach Rs 2,300,” the note said. It flagged regulatory oversight as the main risk: “Product quality and safety remain critical given the history of US FDA observations.”
Jefferies on Cummins India: ‘Buy’
Jefferies upgraded Cummins India to Buy and set a target price of Rs 5,120, implying a 19 per cent upside from the prior close of Rs 4,317. The brokerage said the company’s improved pricing discipline and demand from data centres support an extended growth cycle. Jefferies pointed out that data-centre orders now contribute about 40 per cent of domestic power-gen sales, helping diversify earnings beyond industrial demand. “We model 22 per cent EPS CAGR over FY25–28 and see ROE above 30 per cent,” the note said, applying a 45x FY27 earnings multiple. It listed competitive pricing and export softness as key risks but retained confidence in order visibility.
Jefferies on ABB India: Target price indicates 10% upside
Jefferies downgraded ABB India to Hold, even after a 22 per cent EBITDA beat, citing moderating order inflows and stretched valuations. The brokerage has a target price of Rs 5,520, offering around 10.5 per cent potential upside from the current price of Rs 4,995. Margins held steady at 15.5 per cent, but sequential order intake weakened. “While execution remains steady, valuations look full,” the note said, adding that ABB’s premium multiple over 70x FY26 earnings leaves little room for re-rating. Jefferies flagged pricing intensity and delayed project execution as potential drags, though management commentary suggests a healthy medium-term capex pipeline.