The brokerage firm Jefferies has turned positive on three well-known companies across the power, healthcare and consumer goods space. According to the brokerage report, each of these stocks could see meaningful upside over the next 12 months, with the highest potential return estimated at around 25%.
Let’s take a look at the detailed analysis of the investment rationale driving the bullish call-
Jefferies on Torrent Power
Jefferies has given a ‘Buy’ call to Torrent Power and set a target price of Rs 1,485. This indicates an upside potential of around 15% from current market levels.
According to the brokerage report, Torrent Power stands out for its stable growth, strong return on equity, and comparatively lower debt. The report noted that “Torrent Power is unique in listed Indian power utilities with its steady growth, high ROE (Return on Equity) and relatively low debt levels.”
Nearly 60% of the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) is generated from the distribution business, which Jefferies says is increasing at an 8% compound annual growth rate (CAGR) while maintaining a “16%+ ROE (regulated ROE + incentives) profile.”
Meanwhile, the remaining 40% comes from power generation, and this segment is expected to grow significantly. As per the brokerage, the company’s generation portfolio is set to expand “1.6x (13% CAGR) over FY26-30, primarily through renewable energy projects.”
The report also highlighted that Jefferies has factored in 6 gigawatts (GW) of capacity by 2030, adding that “3 GW is already awarded to TPL and the company only has to win 1.7 GW in the next 3 years to achieve our estimates.”
Jefferies on Max Healthcare
Jefferies has maintained its ‘Buy’ call on Max Healthcare Institute with a target price of Rs 1,400. This implies an upside of around 25% from current market prices. According to the brokerage report, Max Healthcare is entering a major expansion cycle which could significantly influence its operations over the next two years.
The brokerage report states that “Max is on-track to add 1,300 capacity beds during in H2FY26, with ~800 being brownfield (faster ramp-up).” These new beds, which include both brownfield and greenfield projects, are expected to become operational in phases, which Jefferies says will “limit -ve impact on margins.”
Important additions include new facilities in Saket and Nanavati, along with expansions in Lucknow and Gurgaon.
Jefferies noted that the combination of new capacity, an improved schedule for the Central Government Health Scheme (CGHS) rates and the performance of recently acquired assets places Max at an important growth point. The brokerage noted that “Max should continue to deliver 20%+ EBITDA growth during the next 2 years.”
Jefferies on Marico
Consumer goods company Marico is the third stock on Jefferies list, with the brokerage assigning a ‘Buy’ rating and a target price of Rs 865. This indicates an expected upside of around 17% from current levels.
According to the brokerage report, Marico’s pricing actions in key products have not led to any major volume disruptions. Jefferies pointed out that “Marico’s pricing power was evident as the company reported only a marginal volume decline (flat on packs sold) despite a sharp 60% YoY price increase in its flagship brand, Parachute.”
Domestic volume growth of 7% has also helped the company stand out among its peers. The brokerage highlights the performance of its digital-first brands, noting that these businesses “continue to gain traction and remain on-track to deliver robust growth with rising profitability.”
At the same time, the brokerage remains cautious on raw material trends, as prices of copra and edible oil have been volatile. But Jefferies expects improvements ahead, stating that management is forecasting a “25% price-led revenue growth in FY26” and a potential recovery in margins by financial year 2027.