Jefferies Recommends Top 10 Stocks: Axis Bank, M&M, and More

Global brokerage firm Jefferies has issued a bullish outlook on the Indian equity market, projecting the Nifty to reach 28,300 by December 2026. This forecast is based on two strong drivers: sustained equity supply and robust domestic flows, which are expected to keep the market range-bound over the coming year. The target is derived from a 20x PE multiple on estimated Dec-27 earnings, implying a modest 5% de-rating from current levels.

In line with this positive outlook, Jefferies has highlighted its top 10 stock picks, reflecting sectors such as lending, autos, cement, hospitality, telecom, property, staples, IT, industrials, and pharmaceuticals. These selections are aimed at investors looking to capitalize on the anticipated growth in these sectors.

One of the standout picks is Axis Bank. Jefferies has assigned a BUY rating to Axis Bank and set a target price of Rs 1,278.80. The brokerage believes that the bank's strong capital position and robust retail loan book make it a compelling investment.

Another notable recommendation is Bharti Airtel. Jefferies sees significant upside potential in the telecom giant, recommending a BUY with a target price of Rs 2,066.70. The company's strong market position and ongoing digital transformation are key factors driving this positive outlook.

Cholamandalam Investment and Finance Company has also made it to Jefferies’ top picks, with a BUY rating and a target price of Rs 1,744.25. The brokerage is bullish on the company's growth prospects in the non-banking financial sector, driven by its strong asset quality and diversified business model.

TVS Motor Company, a leading manufacturer of two-wheelers and three-wheelers, has been recommended with a BUY rating and a target price of Rs 3,605.25. Jefferies is optimistic about the company's market leadership and its focus on innovation and quality.

Mahindra & Mahindra (M&M), a leading player in the automotive and farm equipment sectors, has also been given a BUY rating with a target price of Rs 3,629.95. The brokerage is particularly impressed by M&M's strong product portfolio and its ability to navigate market challenges effectively.

Ambuja Cements, a major player in the cement industry, has been valued at Rs 529.65 by Jefferies, with a BUY rating. The brokerage believes that the company's focus on cost optimization and its robust market presence will drive its growth.

Within the real estate space, Jefferies has dual picks—Lodha Developers, rated BUY with a target of Rs 1,078.75, and Godrej Properties Ltd, also rated BUY with a price target of Rs 2,012.95. Both companies are expected to benefit from the ongoing recovery in the real estate market and their strong project pipelines.

Max Healthcare Institute has been assigned a BUY rating by Jefferies, with a target price of Rs 1,076.80. The brokerage is bullish on the company's growth in the healthcare sector, driven by its expanding network and quality healthcare services.

JSW Energy Limited has received a BUY recommendation from Jefferies, with a price objective of Rs 451.05. The brokerage is optimistic about the company's strong project portfolio and its focus on renewable energy.

Finally, GMR Airports Infrastructure has been included in Jefferies’ top picks, with a BUY rating. The company's robust growth in the airport infrastructure sector and its strong management team are key factors driving this positive outlook.

Investors looking to capitalize on the Indian equity market's growth potential should consider these top picks from Jefferies. Whether you are a seasoned investor or a newcomer, these stocks offer a diverse range of opportunities across various sectors.