India launching the Operator Sindoor did create some nervousness in the market. It was however, short-lived and the investors are now looking at bargain buys. Global brokerage firm Jefferies has recommended Buy on select stocks on the back of strong fundamentals, future growth, and resilience.
Let’s take a look at the stocks Jefferies is bullish on and why-
Indian Hotels: Target price Rs 980, upside of 22%
The brokerage house has retained a Buy rating on Indian Hotels, with a revised target of Rs 980, slightly down from Rs 1,000, an 22% potential upside.
According to Jefferies, hotel segment revenue and EBITDA grew 13% and 20%, showing healthy traction in core business.
“We expect EBITDA/PAT CAGR of 16-18% over FY25-FY28e,” the brokerage said, adding that IHCL continues to benefit from a positive sector outlook and strong new business momentum.
The company’s alternative formats such as Ginger, Qmin, and Ama Stays clocked 40% YoY growth, with Ginger Santacruz alone nearing Rs 1,000 crore in annual revenue. The international portfolio is also showing signs of a turnaround, with The Pier (New York) Hotel turning EBITDA positive in FY25.
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On the expansion front, Indian Hotels had 74 new signings and 26 openings in FY25, 95% of which were asset-light. Another 30+ openings are expected in FY26, including a few asset-heavy properties like Vivanta Ekta Nagar and Ginger Varanasi.
Jefferies has valued the company at 37x FY27 EV/EBITDA.
Mahindra & Mahindra: Target price Rs 4,000, upside of 32%
Next on Jefferies list is Mahindra & Mahindra, with a Buy rating and a revised target price of Rs 4,000 from Rs 4,075, implying a 32% upside.
According to the brokerage, M&M has now reported 12 straight quarters of double-digit EBITDA growth, with Q4 EBITDA jumping 38% year-on-year, a 16% above Jefferies’ own estimates.
The farm equipment segment, which contributes nearly 40% of M&M’s EBIT, is making a strong comeback. Tractor sales grew 18% in the second half of FY25, and M&M expects high-single-digit growth in FY26. The brokerage firm is even more bullish, projecting an 11% CAGR in tractor volumes from FY25 to FY28.
In the passenger vehicle space,
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