India’s Top Stock Picks Across Key Sectors, According to Jefferies

Jefferies has singled out six preferred equity picks across key Indian sectors, spotlighting companies that stand to benefit from infrastructure expansion, consumption trends, and strengthening business fundamentals.

The select list spans materials, building products, information technology, telecommunications, and hospitality.

1. Grasim Industries — As the Aditya Birla Group’s flagship, Grasim operates across fibers, chemicals, building materials, paints, and B2B e-commerce.

It has poured substantial investment into paints in recent years and now holds the number three domestic position by volume share.

The company is likely to log meaningful earnings growth from FY27 onward as newer businesses ramp up and traditional segments recover.

Grasim recently unveiled Rs31 billion in capital expenditure to increase Lyocell capacity. Jefferies sees an EBITDA CAGR of ~35% between FY26 and FY29, with a target price of Rs3,910.

2. Polycab — Polycab is the dominant player in India’s organized cables and wires market, with a 30–31% share in FY26.

Polycab has recorded double-digit sales growth in the past 16 consecutive quarters, keeping a consistent 12–15% EBIT margin. Its revenue sources are diversified across B2B, B2C, B2G, exports, and the FMEG segment.

The company’s new extra-high-voltage plant is slated for commissioning by the end of calendar 2026. Jefferies’ estimates point to a 22% EPS CAGR in FY26–29, supported by volume expansion and margin gains in FMEG, along with a target price of Rs11,100.

3. Coforge — Coforge is predicted to achieve a 15% organic revenue CAGR for FY27–29, supported by a sustained recovery in financial services, growth from its Encora acquisitions, and a strong executable order book of $2.2 billion.

Management’s EBIT margin guidance of 15.5% should drive a 23% EPS CAGR over FY27–29.

Jefferies carries a Buy rating on the stock, with a target price of Rs2,040 based on 25 times earnings.

4. Bharti Airtel — Bharti Airtel operates in a segment that faces less competition than other prominent consumer categories.

India’s mobile revenue-to-GDP ratio sits at only 0.8%, far below those of peer countries; if that ratio normalizes to around 1% by FY31, sector revenue could grow at a 12–14% CAGR.

Jefferies anticipates 14% revenue growth for Airtel’s India operations over FY26–29, led by tariff hikes and gains in home broadband and enterprise business.

The firm maintains a Buy rating with a target price of Rs2,400.

5. GMR Airports — GMR is India’s only listed pure-play private airport operator and the world’s second-largest private airport platform.

FY26 EBITDA jumped 60% year over year to Rs60 billion, despite traffic growth of only 1%.

The company recorded positive free cash flow for the first time in several years, and its Bhogapuram and Nagpur airports have recently started operations.

Jefferies forecasts an EBITDA CAGR of 14% for FY26–29 and a per-share target price of Rs135.

6. Indian Hotels — Indian Hotels, known as the Taj Group, runs more than 630 hotels, with over 250 additional properties in the development pipeline.

The company enjoys tailwinds from domestic travel and runs a diversified model that includes owned hotels, management contracts, and air catering.

Its growing asset-light approach enables rapid network expansion without requiring a proportional outlay of capital.

Jefferies projects EBITDA growth at a 15% CAGR over FY26–29, and values the shares at Rs875 apiece, equal to 28 times September 2028 EBITDA.

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