Top 11 Stocks Jefferies Recommends Holding for the Next Five-Year Horizon

Global trading company Jefferies has identified 11 equities that are projected to yield returns over the next five years at a Compound Annual Growth Rate of 15% to 25%.

Among the companies on the list are Larsen & Toubro (L&T), Macrotech Developers, Zomato, Bharti Airtel, State Bank of India, and others. According to the trading business, these equities should double or quadruple over the next five years.

Amber Enterprises: The brokerage added that Amber Enterprises' core strength in ACs and expansion into components will generate a Compound Annual Growth Rate of 36% in terms of earnings over the financial years 2024 to 2030, referring to the company as a major beneficiary of India's manufacturing success story.

Ambuja Cements: Jefferies predicted that the business will beat most of its competitors in terms of operating performance and that "consolidation will be positive for pricing over the long-term."

Axis Bank: According to Jefferies, Axis Bank is projected to generate an Earnings Per Share (EPS) CAGR of 18% between 2024 and 2029. The bank also stated that "growth in loans will be aided by platforms for hyper-personalization, SME, and rural loans."

Bharti Airtel: Jefferies stated that it expects Bharti Airtel to deliver a 12% to 13% CAGR in its India revenue or EBITDA over the financial years 2024 to 2030. It also noted that Bharti Airtel will progress due to consistent market share gains, an improving pricing environment, and sufficient room for improvements in Average Revenue Per User (ARPU).

JSW Energy: Three triggers—improving visibility on renewable energy, completion of a 700 MW merchant capacity, and development of India's first green hydrogen plants—are expected to materialize for the business in the next 12 to 24 months,

According to Jefferies. The statement read, "The company's prudent cash flow utilization and timely execution will keep multiples elevated and create further shareholder value in the medium term."

Larsen & Toubro: Jefferies stated that L&T would profit from India's capital upcycle and that re-rating is conceivable in the medium term as long as EPS growth stays above 15% and excess cash flow is returned to shareholders.

Macrotech Developers: According to Jefferies, the main factors influencing valuation include the company's development into new regions and the current housing expenditure upcycle, which makes Macrotech a major benefactor.

Max Healthcare: According to Jefferies, the hospital industry's consistent growth trend should raise Max Healthcare's stock price to 2.5 times in five years.

State Bank of India: Robeson Capital anticipates that SBI will reap advantages from its robust deposit network, enhanced digital services, and industry leadership in lending categories.

According to the Source, SBI has the option to revalue its values and profit from its subsidiaries.

TVS Motor: According to Jefferies, "TVS should be a key beneficiary of the revival in Indian two-wheeler demand from an abnormally cyclical trough."

Zomato: Jefferies listed Zomato as a "compelling food delivery play" and stated that "capital allocation will be a key factor to watch, as the franchise generates strong free cash flows."