Demand slowdown and increased competition from new players is a key risk.Fortis plans to add nearly 470 beds in financial year 2027 and over 1,700 beds over the next four to five years, which will lead to a double-digit topline growth in the hospitals business for a long period, according to Jefferies.
It has also assumed a 35% holding company discount for its investments in UltraTech and Aditya Birla Capital.
That though, can narrow as the paints business nears breakeven.Slower than expected scaling of paints, sustained energy cost pressures, delayed recovery of VSF / Chemicals and any deviation from disciplined capital allocation are some of the key risks for Grasim, as highlighted by Jefferies.Jefferies views Polycab as a play on power, capex and housing.
Revenue stream for the company is fairly derisked.Over financial year 2026-2028, Jefferies expects sales CAGR of 20% and Profit After Tax CAGR of 21%, led by steady growth in the cable & wires business and improving margins in the FMEG business.The brokerage has a price target of ₹9,770, valuing the stock at 37 times its estimated price-to-earnings, which is in-line with the historical five-year average.
That, along with a 100%-plus free cash flow conversion to allay investor concerns over profitability and growth quality.Jefferies has a "buy" rating on Coforge with a price target of ₹1,860.
Axis Bank
Adani Ports
Premier Energies
Honasa Consumer
Fortis Healthcare
Grasim Industries
Polycab India
Coforge
Brokerage firm Jefferies has made changes to its "top buy ideas" within its 251 stock coverage.In its latest note on Wednesday, June 10, Jefferies highlights 24 "buy" ideas and eight "underperform" ideas, compared to 23 "buy" and eight "underperform" recommendations in March.Axis Bank Ltd., Premier Energies Ltd., Adani Ports Ltd., Honasa Consumer Ltd. Coforge Ltd. Fortis Healthcare Ltd. Grasim Industries Ltd. and Polycab India Ltd. are fresh additions to the top "buy" recommendation list, while the "underperform" list has two new inclusions in Syngene and LTM (LTIMindtree earlier).Jefferies believes the trends are improving for Axis with loan growth likely to remain above its sector average. It expects Axis Bank's loans to grow at a Compound Annual Growth Rate (CAGR) of 14% over the next three years with a similar deposit growth trend.However, it said that the near-term re-rating potential for Axis is limited as it now trades on par with HDFC Bank on the valuation front, compared to a historical 15% to 20% discount.Axis Bank is among Jefferies' top picks with a price target of ₹1,700, valued at 1.8 times June 2028 adjusted price-to-book and combined with the valuation of its stake in its subsidiaries.Jefferies expects Adani Ports' Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) to grow at a 15% CAGR over financial year 2026-2031, driven by a 13% CAGR in port volumes.The brokerage also expects Adani Ports to gain market share through capacity additions as there is a demand-supply gap for container ports / terminals in Gujarat and Maharashtra.It has cited capital allocation as a key focus area and that strong cash flows enabling growth capex and potential deleveraging of the balance sheet to coexist.Jefferies has a price target of ₹2,160 on Adani Ports, which is valuing the stock at 18 times March 2028 estimated Enterprise Value to EBITDA, and broadly in-line with its FY27 estimated trading multiples.A soft base, a below normal monsoon and potential El Nino conditions are support of strong power demand growth in financial year 2027, according to Jefferies.Premier Energies, according to Jefferies, is well placed to benefit from growth in renewable power demand, according to Jefferies, who added that the company's ₹14,000 crore order book provides strong revenue and EBITDA visibility over financial year 2027 and the first half of financial year 2028.Anticipating a 33% EBITDA CAGR over financial year 2026-2028, Jefferies has a price target of ₹1,135 on Premier Energies, valuing the stock at 13 times EV / EBITDA.Jefferies has cited Honasa's rebound from its past issues of a growth slowdown and an inventory correction, along with a strategic shift to revive growth in Mamaearth, and a 20%+ growth in younger brands as some of the key reasons behind the stock's inclusion in this list.With the management having guided for revenue growth in the high-teens and 100 basis points of annual EBITDA margin expansion over the next five years, Jefferies sees Honasa as a "strong compounding story" in the making.The brokerage anticipates a 18% revenue CAGR over financial year 2026-2029 and a near-23% EBITDA CAGR during the same period.Valuing Honasa at 60 times its estimated June 2028 Earnings Per Share (EPS), Jefferies has a price target of ₹565 on the stock. Demand slowdown and increased competition from new players is a key risk.Fortis plans to add nearly 470 beds in financial year 2027 and over 1,700 beds over the next four to five years, which will lead to a double-digit topline growth in the hospitals business for a long period, according to Jefferies."We believe Fortis will continue to move up the margin trajectory driven by topline growth and operating leverage benefits," Jefferies wrote in its note, projecting a revenue CAGR of 14% and an EBITDA CAGR of 19% over financial year 2026-2029.Diagnostics business is also likely to see a 10% revenue CAGR and a 22% EBITDA CAGR over the same timeframe as competitive pressures have eased and spending on rebranding has normalized.With the litigation overhang largely behind, Jefferies prefers Fortis as a brownfield-driven expansion story with strong near-term growth visibility.The brokerage has a price target of ₹1,125 on the stock.Jefferies expects Grasim's earnings to be driven by a turnaround in the traditional businesses and scaling up of new segments, along with the B2B e-commerce turning EBITDA positive.The brokerage has valued the legacy business at 5 times financial year 2027 EV/EBITDA, while valuing the paints and B2B e-commerce divisions on an EV/Sales basis. It has also assumed a 35% holding company discount for its investments in UltraTech and Aditya Birla Capital. That though, can narrow as the paints business nears breakeven.Slower than expected scaling of paints, sustained energy cost pressures, delayed recovery of VSF / Chemicals and any deviation from disciplined capital allocation are some of the key risks for Grasim, as highlighted by Jefferies.Jefferies views Polycab as a play on power, capex and housing. Revenue stream for the company is fairly derisked.Over financial year 2026-2028, Jefferies expects sales CAGR of 20% and Profit After Tax CAGR of 21%, led by steady growth in the cable & wires business and improving margins in the FMEG business.The brokerage has a price target of ₹9,770, valuing the stock at 37 times its estimated price-to-earnings, which is in-line with the historical five-year average. Demand slowdown, volatility in copper prices are some key risks.The brokerage expects Coforge to deliver an organic revenue CAGR of 13% over financial year 2026-2029, considering a sustained recovery in financial services verticals, up / cross-selling opportunities from its Cigniti acquisition, a strong executable order book, and a healthy deal pipeline.Coforge's 23% EPS growth CAGR projection over financial year 2027-2029 will be supported by the management's minimum margin guidance of 15.5% EBIT margins. That, along with a 100%-plus free cash flow conversion to allay investor concerns over profitability and growth quality.Jefferies has a "buy" rating on Coforge with a price target of ₹1,860.
