Jefferies names 5 ‘Buy’ stocks with 31% to 53% upside

The five companies are spread across power transmission, renewable energy, solar manufacturing and infrastructure. Jefferies’ India Forum 2026 takeaways point to a mix of capacity expansion, rising electricity demand, smart-meter deployment, battery storage, stronger power purchase agreement coverage and a pickup in private-sector capital expenditure as important drivers for these companies.

Jefferies on Adani Energy Solutions: ‘Buy’

Adani Energy Solutions stands out in Jefferies’ list with a target price of Rs 2,060 and 53% upside. The brokerage sees the company’s transmission business, smart-meter rollout and energy trading platform as the main engines of growth over the next few years.

The trading business is becoming more visible as the company locks in power supply arrangements. Jefferies noted that the recent 2.5 GW round-the-clock power supply agreement with Maharashtra State Electricity Distribution Company has taken tied-up volumes in the trading segment to 57% in FY28E, compared with 20% at the end of the first quarter of FY27. The brokerage said this should make the earnings profile of the business more sustainable.

Transmission is another major opportunity. Adani Energy Solutions has a 23% share of the competitive transmission bidding market, second only to Power Grid Corporation of India, according to Jefferies. The near-term bid pipeline has also increased to Rs 1.1 lakh crore from Rs 90,000 crore a year earlier. Jefferies has built in Rs 15,000 crore of transmission capitalisation for FY27E.

Smart metering could add another leg to the growth story. The company had installed 13.4 million meters by the end of the first quarter of FY27, against 5.5 million a year earlier. Jefferies estimates that around 10.3 crore smart meters are still to be bid out under the government’s 25 crore target, with Telangana, Karnataka, Tamil Nadu and Andhra Pradesh expected to account for a large part of the opportunity.

“Smart Metering remains an exciting opportunity, as bidding for around 103 mn smart meters is still left of the government’s 250 mn target,” Jefferies said.

Adani Energy Solutions is already executing smart-meter projects worth Rs 29,500 crore, covering around 24.6 million meters, while its proposed acquisition of IntelliSmart brings a portfolio of 22.3 million meters. Jefferies expects revenue to grow at a 22% CAGR and EBITDA at a 29% CAGR between FY26 and FY30E.

Adani Energy Solutions share price performance

Jefferies on Premier Energies: ‘Buy’

Premier Energies is the second name on the list, with Jefferies assigning a target price of Rs 1,205 and 36% upside. The brokerage’s thesis is closely tied to the expansion of India’s domestic solar manufacturing ecosystem and the company’s move towards larger, integrated production capacity.

Jefferies expects Premier Energies to build 12 GW to 15 GW of fully integrated capacity by FY31. Solar is expected to remain the core business, accounting for around 70% to 75% of the company’s business. Its cell manufacturing expansion is also important as the industry shifts towards greater domestic content and integrated production.

The brokerage expects industry consolidation to play a role in the company’s growth. It said the market could eventually be controlled by a small number of scaled manufacturers as standalone module producers face pressure on margins.

“Management expects only 4-5 scaled manufacturers to ultimately control 80% of the market, as standalone module players face negative margins,” Jefferies said.

Premier Energies is also looking beyond conventional solar manufacturing. Jefferies highlighted its plans for battery energy storage systems, including a 12 GWh cell-to-pack facility expected to start from June 2027. The company also has an order book of around Rs 15,000 crore, providing visibility for future execution.

Jefferies values Premier Energies Ltd. at 13 times estimated June 2028 EBITDA, based on an average EBITDA margin of 27.5% for FY27E to FY29E. The brokerage expects a 27% EBITDA CAGR between FY26 and FY29E, while stronger-than-expected domestic solar demand is identified as a potential upside trigger.

Premier Energies share price performance

Jefferies on Adani Green Energy: ‘Buy’

Adani Green Energy Ltd. has a Jefferies target price of Rs 1,695, implying 34% upside. The brokerage’s investment case rests on a sharp increase in renewable generation capacity, a large project pipeline and the expansion of battery storage.

Jefferies expects Adani Green’s installed capacity to rise to about 44 GW by FY30E, compared with the company’s stated target of 50 GW. The brokerage estimates that the company could add around 25 GW of renewable capacity between FY26 and FY30E, accounting for a sizeable share of its estimate for India’s overall renewable capacity additions during the period.

Khavda is central to the capacity expansion story. Jefferies expects the site to account for about 60% of the company’s 50 GW target by 2030. It also expects better utilisation from the project as the portfolio scales.

“The location has the best solar irradiation levels after Ladakh in India and should help incremental utilisation levels rise to 30%+ from current company average of 25-26%,” Jefferies said.

Battery storage is another part of the expansion plan. Jefferies expects Adani Green’s battery energy storage capacity to reach 20 GWh by FY29E, while the company is also pursuing pumped hydro storage projects to participate in round-the-clock renewable power bids. The brokerage said the company’s project pipeline and land bank provide visibility on its longer-term capacity target.

A large portion of Adani Green’s installed capacity is tied to long-term power purchase agreements, which Jefferies said provides cash-flow visibility. The brokerage expects EBITDA to grow at a 30% CAGR and EPS at a 26% CAGR between FY26 and FY30E.

Adani Green Energy share price performance

Jefferies on Adani Power: ‘Buy’

Adani Power comes next, with Jefferies assigning a target price of Rs 270 and 33% upside. The brokerage’s thesis is built around the company’s aggressive capacity expansion and the increasing proportion of generation capacity secured through long-term power purchase agreements.

Adani Power Ltd. is targeting 45 GW of capacity by FY32, compared with 18.2 GW currently. Of the 23.7 GW of upcoming capacity, 56% has already been locked in through long-term power purchase agreements, according to Jefferies. The brokerage expects 7.1 GW of the upcoming capacity to become operational by FY29E.

The rise in contracted capacity is important for earnings visibility. Jefferies noted that 95% of Adani Power’s current operating capacity is now tied to PPAs, compared with more than 80% at the end of FY25. Of the 23.7 GW under development, 13.3 GW is already tied up.

“95% of APL’s current operating capacity is PPA tied-up vs 80%+ end FY25. 13.3 GW of the upcoming 23.7 GW is also already tied up, reducing earnings volatility,” Jefferies said.

The brokerage expects Adani Power’s EBITDA to grow at a 22% CAGR between FY26 and FY30E, while operating cash flow is projected to rise at a 17% CAGR. Jefferies also expects free cash flow to turn positive by FY30E as the company’s expansion programme progresses.

At the same time, Jefferies has flagged risks around a possible recurrence of past PPA-related issues and a sharp decline in merchant realisations. Its Rs 270 target is based on a 20-times September 2028E EV/EBITDA valuation.

Adani Power share price performance

Jefferies on Larsen & Toubro: ‘Buy’

Larsen & Toubro rounds out the five stocks, with Jefferies assigning a target price of Rs 5,000 and 31% upside. Unlike the power and solar names, the company’s opportunity is tied more broadly to infrastructure spending in India and the Middle East, along with a growing contribution from private-sector capital expenditure.

Jefferies noted that private-sector companies are playing a larger role in India’s investment cycle. Their share of L&T’s domestic order book had increased to 40% in the first quarter of FY27 from 21% at the end of FY25. June-quarter order inflow also rose 14% year on year, ahead of the company’s full-year guidance of 10% to 12%.

“Management highlighted that India is seeing private sector chipping in on capex, particularly in real estate, thermal power, and metals & minerals,” Jefferies said.

The international business is another important part of the order pipeline. Jefferies said international orders accounted for 52% of L&T’s June 2026 order book, while international revenue contributed 50% of E&C sales in FY26, up from 44% in FY25.

Despite the higher international contribution, core E&C margins stood at 8.3%. Jefferies expects consolidated E&C revenue to grow 15% in FY27E and core E&C EBITDA to rise at an 18% CAGR between FY26 and FY29E.

The brokerage’s Rs 5,000 target is based on a sum-of-the-parts valuation, with the core business valued at 18 times September 2028E EV/EBITDA. Jefferies has also identified a reduction in government capital expenditure focus as a downside risk, along with prolonged geopolitical disruption.

Larsen & Toubro share price performance

What links these five stocks

Jefferies’ five ‘Buy’ calls reflect different parts of India’s investment cycle. Adani Energy Solutions is positioned around transmission, distribution and smart meters, while Adani Green Energy and Adani Power are expanding electricity generation capacity. Premier Energies is increasing its presence across the solar manufacturing chain and adding battery storage, while Larsen & Toubro is seeing stronger order opportunities from infrastructure and private-sector capital expenditure.

The earnings estimates also point to significant growth across the group. Jefferies expects EBITDA to grow at a 29% CAGR for Adani Energy Solutions and 30% for Adani Green Energy between FY26 and FY30E. Its estimates call for a 22% EBITDA CAGR for Adani Power over the same period, while Premier Energies is expected to post a 27% CAGR between FY26 and FY29E. For L&T’s core E&C business, Jefferies expects an 18% EBITDA CAGR through FY29E.

Jefferies’ five ‘Buy’ stocks by upside

Stock	Jefferies target price	Upside
Adani Energy Solutions	Rs 2,060	53%
Premier Energies	Rs 1,205	36%
Adani Green Energy	Rs 1,695	34%
Adani Power	Rs 270	33%
Larsen & Toubro	Rs 5,000	31%

The upside figures are based on Jefferies’ respective 12-month risk/reward estimates.

Disclaimer: This article is based on research reports published by Jefferies as part of its India Forum 2026 coverage and presents the brokerage’s views, estimates, ratings and price targets as of the dates of those reports. The targets and expected returns are based on Jefferies’ own valuation methodologies and assumptions about earnings, business growth, project execution, industry conditions and other factors, all of which may change over time. Jefferies itself notes that the financial instruments discussed may not be suitable for every investor and that investors should make their own investment decisions based on their individual objectives, financial position and risk tolerance, with advice from their financial advisers where appropriate. Past performance is not an indication or guarantee of future returns, and stock prices can rise or fall because of company-specific, economic, financial, geopolitical, regulatory, interest-rate, currency and broader market factors. Jefferies also discloses that it does business and seeks to do business with companies covered in its research and may receive or seek compensation for investment-banking services, which investors should consider when assessing the research. The price targets and ratings cited here are therefore the brokerage’s views and should not be construed as a guarantee of future performance or as personalised investment advice.