By Admin 
Such opportunities do not come in the stock market everyday. International brokerage firms Jefferies have given BUY ratings on three legendary companies, Ambuja Cement, Naveen Flornin, and Voltas. One of these stocks shows up to 29 percent upside. Let us know why these companies are considering Jefferies ‘top pics’ and what investors indicate it.
Ambuja Cement, Target Rs 700, Expected Powerful Growth
Jefferies recently met the management of Ambuja Cement, after which he has retained the BUY rating. The company aims to reach a cement capacity of 140 million tonnes per year (MTPA) by FY28, which is currently 100 MTPA.
The company also shared strategies to control the cost and increase operational efficiency. A recovery of 7-8 percent in industry demand by FY26 is expected. Ambuja said that in the last few months, cement prices have improved and the market has adopted it well. Its target price is Rs 700. That is, potential returns, 29 percent.
Voltas, King of AC segment
Jefferies have also maintained a BUY rating on Voltas, although the target price has been reduced slightly to Rs 1,680 (earlier it was Rs 1,790). Voltas holds 20-21 percent stake in the Room AC market in India, that is, it is a big player in the segment.
But this time untimely rains in May-June have shocked AC sales. It is estimated that the sale of RAC industry may fall from 15-20 per cent year-on-year. The stock remains more than normal in the company’s dealer channels. Its target price is Rs 1,680.
New Florine International, ready for high performance
Jefferies have also fixed the target price of Rs 5,280 while retaining a buy call on new florine. This shows 16 per cent upside from the current price. The time has come to monetize the Rs 2,000 crore which the company has done in the last three years. Through long term contracts, the company is preparing to show 35 % CAGR in its EPS (between FY25 to FY27).
In specialty chemicals, CDMO and High Performance Products (HPP), the company’s contract pipeline may be finalized in FY26, which will provide a clear picture of growth by FY28. However, since January 2023, its stock has underpired 23 percent from Nifty. Its target price is Rs 5,280.
What to do investors?
This report of Jefferies clearly indicates that these three companies can play a big role in their sector in the coming 1-2 years. If you are looking for long term growth and are ready to take a little risk, then these stocks can become part of your portfolio.
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