Jefferies Unveils Top 10 Stock Picks: Axis Bank, M&M, and More

Global investment firm Jefferies has released its top 10 stock picks for the coming year, projecting robust growth and strong market performance. The firm's selections span a wide range of sectors, including banking, automotive, real estate, and healthcare. These picks are expected to benefit from sustained equity supply and robust domestic flows, which are key drivers of the Indian equity market.

Jefferies has set a target for the Nifty to reach 28,300 by December 2026. This projection is based on a 20x PE multiple on estimated Dec-27 earnings, implying a modest 5% de-rating from current levels. The firm believes that these factors will keep Indian equity markets range-bound over the coming year.

Among the top stock picks, Axis Bank stands out with a BUY rating and a target price of Rs 1,278.80. Jefferies is bullish on Axis Bank due to its strong financial fundamentals and potential for growth in the lending sector. The bank has shown resilience in recent quarters and is well-positioned to capitalize on the recovery in the Indian economy.

Bharti Airtel, a major player in the telecommunications industry, has also made it to Jefferies' list. The firm recommends a BUY on the stock with a target price of Rs 2,066.70. Bharti Airtel has been making significant strides in expanding its 5G network and improving its service offerings, making it a compelling investment opportunity.

Cholamandalam Investment and Finance Company, a leading non-banking financial company (NBFC), has been assigned a BUY rating with a target price of Rs 1,744.25. Jefferies is optimistic about the company's growth prospects, driven by its strong balance sheet and strategic business initiatives.

TVS Motor Company, a prominent player in the automotive sector, has also been included in Jefferies' top picks. The firm recommends a BUY on the stock with a target price of Rs 3,605.25. TVS Motor has been performing well, driven by strong sales and innovative product launches.

Mahindra & Mahindra (M&M), a leading automotive and industrial company, has been given a BUY rating with a target price of Rs 3,629.95. Jefferies is bullish on M&M due to its diversified portfolio and strong market position in both the domestic and international markets.

In the cement sector, Ambuja Cements has been valued at Rs 529.65 with a BUY rating. The company is expected to benefit from the ongoing infrastructure development and the government's focus on housing for all.

Within the real estate space, Jefferies has dual picks—Lodha Developers and Godrej Properties Ltd. Both companies have been rated BUY with price targets of Rs 1,078.75 and Rs 2,012.95, respectively. The real estate sector is poised for growth, driven by increasing urbanization and the government's initiatives to boost the housing market.

Max Healthcare Institute, a leading healthcare provider, has been assigned a BUY rating with a target price of Rs 1,076.80. The healthcare sector is expected to see significant growth, driven by the increasing demand for quality healthcare services and the government's focus on healthcare infrastructure.

JSW Energy Limited, a major player in the energy sector, has received a BUY recommendation from Jefferies with a price target of Rs 451.05. The company is well-positioned to benefit from the growing demand for clean energy and the government's push for renewable energy sources.

GMR Airports Infrastructure, a leading airport operator, has also been included in Jefferies' top picks. The firm recommends a BUY on the stock, although the specific target price has not been disclosed. The aviation sector is expected to recover strongly, driven by the easing of travel restrictions and the resumption of international travel.

These stock picks reflect Jefferies' positive outlook on the Indian equity market and its belief in the potential of these companies to deliver strong returns. Investors are advised to consider these picks as part of a diversified investment strategy.