The global brokerage firm Jefferies has rolled out its top recommendations for September across auto, steel, and pharma names. The firm has a Buy rating on Mahindra & Mahindra, TVS Motor, Jindal Stainless, Sun Pharma and Mankind Pharma, with target prices suggesting strong upside potential in the coming months.
Let’s take a look at what the brokerage has to say –
Jefferies on Mahindra & Mahindra
Jefferies has given a “Buy” rating on Mahindra & Mahindra (M&M). According to the brokerage, the company draws nearly 40% of its EBIT from the farm division, where growth is expected to continue. “We expect M&M’s total tractor volumes (including exports) to grow at 9% CAGR over FY25-28E,” the report said.
The other growth engine is the passenger vehicle business, especially SUVs. “M&M’s PV market share has doubled from 5.8% in FY21 to a new high of 15% in 1QFY26, making it thesecond largest passenger vehicle maker ,” Jefferies noted.
With 12 new SUVs planned by 2030, including five EVs, the brokerage believes the franchise is only getting stronger. “We like MM’s strong tractor and improving auto franchise,” the report added, highlighting that EPS growth of 19% CAGR could be seen in the coming years.
Jefferies on TVS Motor
Jefferies has maintained a “Buy” call on TVS Motor. The brokerage sees the company as well-placed despite recent weakness in two-wheeler demand. “We expect 10% industry volume CAGR over FY25-28E,” it said.
Exports have also bounced back. “India’s 2W exports fell 22% over FY22-24, but have recovered well, rising 21% YoY in FY25 and up a further 23% YoY in 1QFY26,” Jefferies said, pointing to stronger demand from Africa and Latin America.
The company’s domestic market share is at a 22-year high of 19.2%, with strong positions across motorcycles, scooters, and EVs. Margins too have improved.
“Its EBITDA margin has improved from 6.4% in FY10-17 to 12.3-12.5% in FY25-1QFY26. We expect further expansion to 14% by FY28E,” the brokerage said.
Jefferies on Jindal Stainless
A “Buy” rating with a target price of Rs 900 has been assigned to Jindal Stainless. The brokerage highlighted the company’s leadership position with a 40% share in India’s stainless steel market.
“India is among the fastest-growing major markets for stainless steel with growth rate ~2x of global in last 5 years,” Jefferies noted in its report.
Import curbs are also aiding domestic producers. “SS imports into India have moderated to an average of 65kt/month in Q1FY26, down from 112kt/month in 2HFY25,” it noted, adding that new BIS standards and anti-dumping duties could further ease margin pressures.
Global trends may also play a role. “Any expansion in spreads can boost JDSL’s profitability,” Jefferies said.
Jefferies on Sun Pharma
For Sun Pharma, Jefferies has a “Buy” rating with a price target of Rs 2,070. The brokerage highlighted the company’s leadership in the domestic market with around 8.5% share and its growing specialty portfolio.
“Sun Pharma’s specialty portfolio has been driven by sales of its psoriasis drug Ilumya and given that anti-IL23 drugs are replacing anti-IL17, sales of the drug could add another 35-40% from FY24 levels in next three years,” the report said.
As per the brokerage report, new launches like Leqselvi (for hair loss) and Unloxcyt (oncology) are expected to further strengthen growth. With over $3 billion in cash, Jefferies sees room for further product additions. “Sun Pharma’s business offers high-teens earnings growth over FY26-28E with high predictability and certainty,” the report added.
Jefferies on Mankind Pharma
The brokerage house Jefferies has a “Buy” rating on Mankind Pharma with a target price of Rs 3,100. “Mankind’s has been ramping up its chronic contribution and has increased it by 350bps+ in past three years to ~40%,” Jefferies said.
The company has weathered challenges around workforce reorganisation and its Bharat Serum acquisition. “Both these challenges are behind us,” the brokerage observed. Domestic growth is now tracking ahead of industry, while the acquisition of BSV gives Mankind new capabilities in differentiated products.
Jefferies also pointed out that the OTC vertical is back to double-digit growth after restructuring. “We expect this momentum to continue as restructuring efforts bear fruit in the core India business,” the report added.