Global brokerage firm Jefferies has identified 11 stocks which it expects to deliver impressive Compound Annual Growth Rates (CAGR) of 15% to 25% over the next half-decade.
In a recent analysis, global brokerage firm Jefferies has identified 11 stocks poised to offer substantial growth opportunities over the next five years. Here's a breakdown of their recommendations:
Amber Enterprises: Positioned as a key beneficiary of India's manufacturing growth, Amber Enterprises is expected to achieve a remarkable Compound Annual Growth Rate (CAGR) of 36% in earnings from 2024 to 2030, driven by its core competency in ACs and diversification into components.
Ambuja Cements: With a forecast of strong operating outperformance compared to its peers, Ambuja Cements is anticipated to benefit from consolidation, leading to positive pricing dynamics over the long term.
Axis Bank: Jefferies predicts an 18% EPS CAGR from 2024 to 2029 for Axis Bank, citing growth prospects in hyper-personalisation platforms, SME, and rural loans.
Bharti Airtel: Expecting consistent market share gains and an improving pricing environment, Bharti Airtel is projected to achieve a 12% to 13% CAGR in India revenue or EBITDA from 2024 to 2030.
JSW Energy: With triggers like improving visibility on Renewable Energy and commissioning of merchant capacity, JSW Energy is set for medium-term growth, bolstered by prudent cash flow utilization.
Larsen & Toubro: Benefiting from India's capex upcycle, L&T is poised for re-rating as EPS growth remains strong, coupled with surplus cash flow distribution to shareholders.
Macrotech Developers: Positioned as a key beneficiary of the current housing capex upcycle, Macrotech is expected to witness valuation drivers through land value reset and expansion into new geographies.
Max Healthcare: With sustained growth momentum in the hospital business, Max Healthcare has the potential to become a 2.5x stock in five years.
State Bank of India: Jefferies anticipates SBI's growth fueled by its strong deposit franchise, enhanced digital offerings, and leadership across lending segments, with scope for valuation re-rating.
TVS Motor: Positioned to benefit from the revival in Indian two-wheeler demand, TVS Motor is expected to rebound from cyclical troughs.
Zomato: Considered a compelling food delivery play, Zomato's strong free cash flows and capital allocation strategies make it a promising investment opportunity according to Jefferies.