Global brokerage firm Jefferies has turned bullish on India’s defence and power-infra sector. In a new report, it has picked HAL, Siemens, Larsen & Toubro (L&T), and KEI Industries as its top stock ideas, citing strong order flows and better earnings visibility.
This isn’t just a hunch—it’s backed by hard data. Jefferies says defence order inflows for the companies it covers are up 89% year-on-year. That’s not a spike. That’s a surge.
HAL: Taking Flight
Hindustan Aeronautics Ltd (HAL) is Jefferies’ crown jewel. With a visible order book of ₹1.7 lakh crore, the stock has a bull case target of ₹7,500—that’s 50% above current levels. Even the base case is solid at ₹6,475. Jefferies believes HAL will benefit from faster defence clearances and more tenders.
Siemens: Powering Up
Next up, Siemens. Backed by strong exports to its parent and better asset turnover, it’s got momentum. The bull case is ₹4,500 (36% upside), and the base case is ₹3,700 (12% upside). Not wild growth, but solid and steady—just what long-term portfolios love.
L&T: Building the Future
L&T, the giant in engineering and construction, is expected to see an 18% CAGR in revenue. Jefferies sees its stock climbing to ₹3,965. While that’s just a 9% upside, the story here is consistent margin growth, especially in hydrocarbon and heavy engineering.
KEI Industries: The Underdog
If you’re chasing the biggest jump, KEI Industries might be it. Jefferies projects a bull case target of ₹5,625, or a whopping 59% upside. With expected earnings growth of 31% annually between FY25 and FY27 and improving retail margins, KEI looks ready for liftoff.
The Bottom Line
Jefferies isn’t just betting on stocks. It’s betting on India’s next big chapter—defence self-reliance, infra expansion, and manufacturing scale-up. These picks are a signal: the money is flowing where the real groundwork is being laid.
And while the market will do what markets do—volatile, noisy, emotional—this report cuts through with one clear message: India’s building. And those who build it are about to get paid.
Disclaimer:
This article is for informational purposes only and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
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