Market reactions to India’s launch of Operation Sindoor initially sparked uncertainty among investors. However, that anxiety quickly faded, prompting many to seek out promising stocks at attractive prices. Global investment firm Jefferies has identified several stocks to buy, emphasizing strong fundamentals and significant growth prospects.

Stocks Recommended by Jefferies

Indian Hotels: Target Price Rs 980, 22% Upside

Jefferies has reaffirmed its Buy recommendation for Indian Hotels, adjusting the target price to Rs 980, which suggests a potential upside of 22%. The company’s hotel segment has shown impressive growth, with revenue and EBITDA increasing by 13% and 20%, respectively, reflecting robust core business performance.

• Future Projections: Jefferies anticipates an EBITDA/PAT CAGR of 16-18% from FY25 to FY28.
• Business Growth: The firm highlights the success of alternative formats like Ginger, Qmin, and Ama Stays, which achieved a 40% year-on-year growth. Notably, Ginger Santacruz is approaching Rs 1,000 crore in annual revenue.
• International Ventures: The Pier Hotel in New York is projected to achieve EBITDA positivity in FY25.

Indian Hotels is also expanding, with 74 new signings and 26 openings planned for FY25, predominantly in asset-light models. An additional 30+ openings are scheduled for FY26, including notable properties such as Vivanta Ekta Nagar and Ginger Varanasi.

Mahindra & Mahindra: Target Price Rs 4,000, 32% Upside

Mahindra & Mahindra (M&M) is another stock Jefferies is optimistic about, with a revised target price of Rs 4,000, indicating a 32% upside. The company has maintained an impressive streak of 12 consecutive quarters of double-digit EBITDA growth, with a 38% year-on-year increase in Q4.

• Farm Equipment Recovery: M&M’s farm equipment sector, accounting for nearly 40% of its EBIT, is on an upswing. Tractor sales surged by 18% in the latter half of FY25, with expectations of high-single-digit growth for FY26. Jefferies predicts an 11% CAGR in tractor volumes from FY25 to FY28.
• SUV Market Share: M&M has significantly increased its SUV market share, rising from 5.8% in FY21 to 12.8% in FY25. The company plans to introduce three new SUVs and upgrade two existing models in 2026, including both internal combustion and electric vehicles.

Jefferies maintains that M&M’s growth outlook and improving market position warrant further re-rating, despite current valuations being above historical averages.

Coforge: Target Price Rs 9,000, 22% Upside

Jefferies continues to endorse Coforge with a Buy rating and a target price of Rs 9,000, reflecting a potential 22% upside. The company posted a 3.4% quarter-on-quarter revenue growth in Q4, exceeding market expectations, driven by five major contracts, including a significant $1.6 billion deal with Sabre.

• Record Order Intake: Coforge’s total order intake reached a record $2.1 billion, marking a 175% year-on-year increase.
• Revenue Outlook: Jefferies notes that the ratio of forward revenues to the executable order book remains healthy, suggesting a 25% growth in FY26 even at conservative estimates.

The company’s margins are also stable, with EBIT margins increasing by 120 basis points quarter-on-quarter, aided by reduced costs. Jefferies projects a 23% CAGR in earnings per share (EPS) from FY26 to FY28, reinforcing confidence in Coforge’s consistent execution and growth trajectory.

Investors looking for opportunities in the current market landscape may find these stocks appealing, as highlighted by Jefferies’ comprehensive analysis.