Top 6 Stocks to Buy: Jefferies Sees Strong Upside Across Key Sectors

Jefferies remains positive on six Indian stocks across jewellery, power, logistics, pharmaceuticals, automobiles and consumer durables, with its price targets indicating potential upside of 15% to 39% based on the brokerage's reports. Kalyan Jewellers has the highest potential upside at 39%, followed by Torrent Power at 26%, Gateway Distriparks at 23%, Emcure Pharmaceuticals at 20%, Maruti Suzuki India at 16% and LG Electronics India at 15%. The brokerage has retained or initiated a 'Buy' rating on all six companies, with its investment views based on expected earnings growth, business expansion and sector specific factors.

The individual investment cases vary across the six stocks. Jefferies expects jewellery market formalisation to support Kalyan Jewellers, renewable capacity expansion to drive Torrent Power, rail cargo growth to benefit Gateway Distriparks and international growth to support Emcure Pharmaceuticals. For Maruti Suzuki India, the brokerage expects passenger vehicle demand to remain supportive despite near term margin pressure, while LG Electronics India is backed by premiumisation, new product launches, capacity expansion and its position across consumer electronics categories.

Jefferies' six 'Buy' stocks

Company	Jefferies rating	Target price	Potential upside
Kalyan Jewellers	Buy	Rs 830	39%
Torrent Power	Buy	Rs 1,780	26%
Gateway Distriparks	Buy	Rs 74	23%
Emcure Pharmaceuticals	Buy	Rs 2,320	20%
Maruti Suzuki India	Buy	Rs 16,500	16%
LG Electronics India	Buy	Rs 1,810	15%

Kalyan Jewellers

Jefferies initiated coverage on Kalyan Jewellers India with a 'Buy' rating and a target price of Rs 830, implying 39% upside according to the brokerage. The investment case is based on the size and structure of India's jewellery market, which Jefferies estimates at more than $115 billion, with around 60% still unorganised. The brokerage expects formalisation and rising consumer preference for trusted brands to support organised jewellery companies. Kalyan has more than 500 showrooms and around 7% of India's organised jewellery market, while its expansion outside South India remains an important part of its growth strategy.

Jefferies expects Kalyan's revenue to grow at a 23% compound annual growth rate between FY26 and FY29, while earnings per share could grow at around 21% during the same period. The brokerage also highlighted the company's Franchise Owned Company Operated model, under which franchise partners fund inventory and store capital expenditure while Kalyan retains control over operations, pricing and customer experience. Jefferies valued the company at 38 times September 2028 estimated earnings for its base case target of Rs 830. Its bull case target is Rs 1,000, while its bear case target is Rs 500.

Torrent Power

Jefferies retained its 'Buy' rating on Torrent Power and raised its target price to Rs 1,780 from Rs 1,700, implying 26% upside. Renewable energy expansion is central to the brokerage's investment view. Jefferies expects Torrent Power's EBITDA to grow at a 13% compound annual growth rate between FY26 and FY30, while renewable energy EBITDA is estimated to grow at a 36% compound annual growth rate over the same period.

Torrent Power added 70 MW of renewable capacity during the June quarter, taking its renewable capacity to 2.1 GW. The company is targeting 10 GW of renewable capacity by 2030. Jefferies expects renewable capacity to increase at least three times by FY30. The brokerage also highlighted the distribution business, which contributes more than 60% of EBITDA, and expects it to grow at a 5% compound annual growth rate between FY26 and FY30. Its bull case target is Rs 2,000, while its downside case target is Rs 1,190.

Gateway Distriparks

Jefferies retained its 'Buy' rating on Gateway Distriparks and raised its target price to Rs 74 from Rs 73, implying 23% upside. The brokerage expects a shift in cargo volumes from road to rail to support the company's long term growth, with Dedicated Freight Corridor connectivity and capacity additions forming a major part of its investment case.

Jefferies estimates rail volumes could grow at an 11% compound annual growth rate between FY26 and FY30. June quarter volumes declined 2% year on year, while EBITDA per twenty foot equivalent unit fell 4%. The brokerage attributed some of the near term pressure to Middle East tensions and changes in business mix. Gateway's multimodal logistics park at Ankleshwar is expected to begin export import operations from September 2026, while its Indore inland container depot is expected to commence operations by 2028. Competitive intensity and delays in capacity expansion remain risks. The bull case target is Rs 86 and the downside case target is Rs 49.

Emcure Pharmaceuticals

Jefferies retained its 'Buy' rating on Emcure Pharmaceuticals and raised its target price to Rs 2,320 from Rs 2,100, implying 20% upside. The brokerage's view follows a strong June quarter, with revenue of Rs 25.8 billion coming in 10% above its estimate. EBITDA of Rs 5.1 billion was 12% above its estimate, while profit after tax of Rs 2.9 billion was 25% ahead of expectations.

Revenue growth was spread across several international markets. India revenue increased 10% year on year, while Europe grew 33%, North America increased 25% and the rest of the world business rose 45%. Jefferies expects the company to reach the upper end of its FY27 guidance for low to mid teens sales growth and 70 to 100 basis points of EBITDA margin expansion. The brokerage raised its FY27 to FY29 earnings per share estimates by 6% and expects more than 22% compound annual growth in profit after tax between FY26 and FY29. Its bull case target is Rs 2,590 and its downside case target is Rs 1,780.

Maruti Suzuki India

Jefferies retained its 'Buy' rating on Maruti Suzuki India with a target price of Rs 16,500, implying 16% upside. The brokerage reduced its FY27 earnings per share estimate by 16% and its FY28 and FY29 estimates by 6%, mainly because of near term margin pressure. June quarter EBITDA declined 7% year on year and was 23% below Jefferies' estimate, while the EBITDA margin contracted 3.5 percentage points sequentially to 8.2%.

Despite the margin pressure, Jefferies expects passenger vehicle demand to remain supportive. The brokerage estimates industry passenger vehicle volumes could grow 12% in FY27 and at an 8% compound annual growth rate between FY27 and FY29. Maruti's total volumes are expected to grow 13% in FY27 and at an 8% compound annual growth rate between FY27 and FY29. Jefferies also noted that Maruti's market share has stabilised around 40% to 41% after declining from 49% in FY21 to 41% in FY23. Its bull case target is Rs 18,200, while the downside case target is Rs 12,500.

LG Electronics India

Jefferies retained its 'Buy' rating on LG Electronics India and raised its target price to Rs 1,810 from Rs 1,750, implying 15% upside. The brokerage identified the company as its preferred stock among the six recommendations. Its investment view is based on the company's premium product mix, price increases, new product launches, compressor manufacturing plans and return ratios.

LG Electronics India retained strong market positions across several categories in FY26. According to the Jefferies report, the company had a 28.8% share in refrigerators, 31.5% in washing machines, 18.7% in inverter air conditioners and 26.1% in panel televisions. Jefferies expects earnings per share to grow at a 25% compound annual growth rate between FY26 and FY28, supported by premiumisation and improved capacity utilisation. The Sri City plant is expected to begin compressor production in December 2026 and room air conditioner production in April 2027.

Jefferies stock targets at a glance

The six recommendations cover businesses with different growth drivers and operating conditions. Kalyan Jewellers has the highest stated upside at 39%, while LG Electronics India has the lowest at 15%. The targets are based on the respective Jefferies research reports and reflect the brokerage's assumptions about earnings growth, business expansion and valuation.

Stock	Target price	Upside	Main factor cited by Jefferies
Kalyan Jewellers	Rs 830	39%	Jewellery market formalisation
Torrent Power	Rs 1,780	26%	Renewable energy expansion
Gateway Distriparks	Rs 74	23%	Rail cargo and DFC growth
Emcure Pharmaceuticals	Rs 2,320	20%	International growth
Maruti Suzuki India	Rs 16,500	16%	Passenger vehicle demand
LG Electronics India	Rs 1,810	15%	Premiumisation and capacity

What investors should watch

The six stocks have different factors that could influence their performance. Kalyan Jewellers depends on continued formalisation of the jewellery market and showroom expansion. Torrent Power's outlook is linked to renewable capacity growth, while Gateway Distriparks depends on rail cargo volumes and execution of new logistics capacity. Emcure Pharmaceuticals needs to maintain growth across its international markets, while Maruti Suzuki India faces near term margin pressure despite expectations for passenger vehicle demand growth. LG Electronics India is dependent on premium product demand, new launches and capacity utilisation.

Jefferies' price targets are based on its own earnings estimates and valuation assumptions. The stated upside figures should therefore be viewed as brokerage projections and can change if earnings expectations, business conditions or valuations change.

Which six Indian stocks has Jefferies rated Buy?

Jefferies has a Buy rating on Kalyan Jewellers, Torrent Power, Gateway Distriparks, Emcure Pharmaceuticals, Maruti Suzuki India and LG Electronics India.

Which stock has the highest upside according to Jefferies?

Kalyan Jewellers has the highest potential upside among the six stocks, with Jefferies' target price of Rs 830 indicating 39% upside.

What is Jefferies' target price for Kalyan Jewellers?

Jefferies has a Rs 830 target price for Kalyan Jewellers, implying 39% upside based on the brokerage's report.

What is Jefferies' target price for Torrent Power?

Jefferies has raised its target price for Torrent Power to Rs 1,780 from Rs 1,700, implying 26% upside.

What is Jefferies' target price for Gateway Distriparks?

Jefferies has a Rs 74 target price for Gateway Distriparks, indicating 23% potential upside.

What is Jefferies' target price for Emcure Pharmaceuticals?

Jefferies has raised its target price for Emcure Pharmaceuticals to Rs 2,320 from Rs 2,100, implying 20% upside.

What is Jefferies' target price for Maruti Suzuki India?

Jefferies has retained a Rs 16,500 target price for Maruti Suzuki India, implying 16% upside.

What is Jefferies' target price for LG Electronics India?

Jefferies has raised its target price for LG Electronics India to Rs 1,810 from Rs 1,750, implying 15% upside.

Why is Jefferies bullish on Kalyan Jewellers?

Jefferies expects the formalisation of India's jewellery market to support organised players. It also cited Kalyan's showroom network, market share and expansion strategy as factors supporting its growth outlook.

Why does Jefferies like Torrent Power?

The brokerage expects renewable energy expansion to drive Torrent Power's earnings. It expects the company's renewable capacity to increase substantially by FY30.

What is driving Jefferies' view on Gateway Distriparks?

Jefferies expects the shift of cargo from road to rail, Dedicated Freight Corridor connectivity and capacity additions to support Gateway Distriparks. It estimates rail volumes could grow at an 11% CAGR between FY26 and FY30.

Why does Jefferies have a Buy rating on Emcure Pharmaceuticals?

Jefferies cited strong growth across India, Europe, North America and other international markets. It expects more than 22% CAGR in profit after tax between FY26 and FY29.

Why is Jefferies positive on Maruti Suzuki India?

Despite near term margin pressure, Jefferies expects passenger vehicle demand to remain supportive. It estimates industry passenger vehicle volumes could grow 12% in FY27.

Why is Jefferies bullish on LG Electronics India?

Jefferies cited LG Electronics India's premium product mix, new launches, capacity expansion and strong market positions across refrigerators, washing machines, air conditioners and televisions.

Which stock is Jefferies' preferred pick among the six?

LG Electronics India was identified as Jefferies' preferred stock among the six recommendations, despite having a lower stated upside of 15%.

What are the Jefferies upside targets for the six stocks?

The stated potential upside ranges from 15% to 39%. Kalyan Jewellers has 39%, Torrent Power 26%, Gateway Distriparks 23%, Emcure Pharmaceuticals 20%, Maruti Suzuki India 16% and LG Electronics India 15%.

Are Jefferies' target prices guaranteed returns?

No. The target prices are brokerage estimates based on assumptions about earnings, growth and valuations. Actual stock prices can move differently depending on market conditions and company performance.

What risks should investors consider with these Jefferies Buy calls?

Investors should consider company specific risks such as margin pressure, execution delays, competition, demand changes, capacity expansion risks, valuation changes and weaker than expected earnings. The stated upside is a research estimate and should not be treated as a guaranteed return.