6 ‘Buy’ recommendations by Jefferies with 34% to 60% upside

Dalmia Bharat, Reliance Industries and GMR Airports feature among the stocks that Jefferies have rated ‘Buy’ in its latest research reports. The recommendations are based on latest earnings performance and the company’s overall revenue and order visibility.

The brokerage’s cement coverage points to higher selling prices as companies seek to offset rising costs, while its Reliance Industries and Indian Oil Corporation reviews examine the outlook for refining profitability. At GMR Airports, stronger non-aeronautical revenue has supported performance despite weak passenger traffic.

Jefferies has assigned a ‘Buy’ rating to Dalmia Bharat with a target price of Rs 2,125 against a reported share price of Rs 1,325. This implies upside of approximately 60.4%.

Jefferies said cement prices improved in October as manufacturers sought to offset higher input costs. All-India cement prices rose 3.3% month-on-month and 4.3% compared with the previous quarter’s average, according to the report. The brokerage expects further price increases to be important as fuel inflation raises costs.

It also cautioned that renewed capacity expansion plans by Ambuja Cements have brought competitive intensity back into focus. While the target price makes Dalmia Bharat the highest-upside stock in this ranking, Jefferies’ stated sector preference is for Grasim Industries and UltraTech Cement. That distinction is important when describing the brokerage’s overall view of the sector.

Jefferies wrote, “If 3Q/4Q hikes sustain without meaningful reversals, investor concerns around medium-term capacity additions and competitive intensity should ease, in our view.”

Jefferies has maintained a ‘Buy’ rating on Reliance Industries with a target price of Rs 1,710 against a reported share price of Rs 1,164, indicating stated upside of 47% in its November 1, 2026 report. The brokerage said the company’s oil-to-chemicals business delivered a strong September-quarter performance, helping earnings before interest, tax, depreciation and amortisation exceed its estimates. The retail business, however, fell short of expectations, with festive-season timing and continued investment in quick commerce affecting performance. Jefferies raised its oil-to-chemicals earnings estimates for the 2027 and 2028 financial years, citing the prospect of sustained profitability in the segment during winter.

Jefferies wrote, “O2C profitability should be elevated in the winter with damage to refining infrastructure in the Middle East and Russia.”

Jefferies has retained a ‘Buy’ rating on GMR Airports with a target price of Rs 125, indicating an upside of 44%. Jefferies described the September-quarter performance as soft because passenger traffic remained weak and earnings before interest, tax, depreciation and amortisation declined 2% year on year.

Non-aeronautical revenue nevertheless grew 17% year on year, supported by stronger monetisation at Delhi and Hyderabad airports.

The brokerage also pointed to record yields at these two airports. Platform costs and the integration and ramp-up of new airports weighed on quarterly earnings, while net debt remained stable compared with the previous quarter.

Jefferies wrote, “Non-aero revenue was key +ve, growing 17% YoY despite weak pax, with Delhi/Hyderabad delivering record yields.”

Jefferies has assigned a ‘Buy’ rating to Ambuja Cements with a target price of Rs 475, the target implies upside of approximately 36.1%.

However, it warned that Ambuja’s latest capacity expansion plans had renewed questions about competitive intensity across the industry. Jefferies said price increases would need to hold, with further hikes helping companies manage higher fuel costs. It also noted that pricing trends differed across regions, with stronger increases in the east and gains across several other markets.

Jefferies wrote, “Ambuja’s latest FY29 capacity expansion plans bring competitive intensity questions back into focus.”

Jefferies has maintained a ‘Buy’ rating on Indian Oil Corporation with a target price of Rs 175 against a reported share price of Rs 130, indicating stated upside of 35% in its November 1, 2026 report. The brokerage said reported earnings were substantially ahead of its estimates, supported by stronger refining performance and inventory gains. Refining gross margins reached $18.5 per barrel before accounting for the special additional excise duty, while inventory gains contributed to the quarterly earnings beat.

Jefferies wrote, “However, refining is likely to remain strong over the winter on damage to infrastructure and low global inventories.”

Jefferies has maintained a ‘Buy’ rating on NTPC with a target price of Rs 425. It indicates an upside of 34%. The brokerage said NTPC’s September-quarter profit was 16% above its estimates, aided by lower disincentives, and raised its earnings-per-share estimate for the 2027 financial year by 1%. However, management lowered its guidance for renewable-energy capacity additions in the 2027 financial year to 5 gigawatts from 7 to 8 gigawatts because of transmission delays. Jefferies also reduced its estimate for overall capacity additions during the year to 6 gigawatts from 8.2 gigawatts.

Jefferies wrote, “We maintain capacity ramp-up as a key re-rating driver ahead.”

The biggest upside in Jefferies’ estimates comes with a caveat. The highest target-price upside does not automatically make a stock its favoured sector pick. Across the other recommendations, the key question is whether recent earnings strength can persist despite the risks identified in each report. Jefferies’ recommendations offer a company-specific view of potential gains, but the assumptions behind each target price remain central to the investment case.