Jefferies sees scope for further re-rating in India's industrials, power stocks

ABB India

12/03/2024 06:46

** Jefferies sees scope for further upside for industrials
and power stocks like NTPC  NTPC.NS , Power Grid Corporation of
India  PGRD.NS , JSW Energy  JSWE.NS , Larsen and Toubro
 LART.NS 
    ** Says valuation analysis points to further upside for
LART; Jefferies has a "buy" rating on stock    
    ** Remains positive on Larsen and Toubro, but says margin
expansion is required for re-rating; LART's core margins in
infrastructure, its biggest business, contracted to 5.5% Y/Y in
Q3 from 7.7%
    ** Adds, industrials and infra firms' capex could see 16%
CAGR in FY23-26 vs 6% in FY11-20 on improvement in operating
leverage, strength in segments like housing
    ** Siemens  SIEM.NS , Thermax  THMX.NS , ABB India  ABB.NS ,
KEI Industries  KEIN.NS  brokerage's top picks in industrials
    ** Sees 17% and 32% upside potentials for NTPC and PGRD
    ** Says NTPC, JSW Energy, Power Grid top picks in power
sector, citing gains from rise in capacity addition, power
demand 
    ** PGRD up 0.4%; LART, NTPC, JSWE down 0.1%-3%
    ** Following chart shows stock performance of industrials
and power cos over the last year vs benchmark Nifty 50 index
 .NSEI  
 
       
    
    

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
India's industrials, power stocks outperform Nifty in last 12
months    https://reut.rs/48S00Ze
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Rama Venkat in Bengaluru)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;))