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4 'Buy' recommendation by Jefferies with up to 28% upside potential

  //stocks-investing.news-articles.net/content/202 .. by-jefferies-with-up-to-28-upside-potential.html
  Published in Stocks and Investing on Wednesday, October 29th 2025 at 2:09 GMT by The Financial Express

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BUY recommendation for 2025, outlining a range of upside catalysts and revised target prices that exceed the current market levels. The report, published in Financial Express and linked to each company’s profile and Jefferies’ own research portal, underscores the bank’s confidence in India’s long‑term growth prospects and the resilience of the domestic oil, telecom and manufacturing sectors.

1. Indian Oil Corporation (IOCL)

Jefferies’ analysts highlighted steady demand growth for refined petroleum products as a key driver for Indian Oil. The bank notes that the company’s high operating efficiency – a product of its integrated refining and distribution network – positions it well to benefit from rising fuel consumption amid India’s economic expansion. The analysts also point to favorable margins in the refining business, supported by a modest uptick in global oil prices and an efficient cost structure.

In its target‑price analysis, Jefferies set a 2025 EPS forecast that is 12% higher than the previous year’s estimates, translating into a price target of ₹1,220 per share. This represents a 9% upside to the current trading level. The bank also raised its “target” for the company from the prior year’s ₹1,100 to ₹1,220, citing the expected improvement in refinery throughput and the anticipated lift in retail gasoline demand. The article links to a Jefferies research page that provides a detailed earnings forecast and an expanded table of operating margins by segment.

2. Sona BLW

Sona BLW, a steel‑products and construction materials supplier, received a BUY rating thanks to robust infrastructure spending in India. Jefferies’ note stresses the firm’s diversification across high‑margin product lines such as ready‑mix concrete and steel reinforcement bars, which have benefited from increased spending on highways, airports and residential real‑estate.

The research team projects a 36% growth in EBITDA over the next three years, driven by higher contract volumes and improved economies of scale. With the projected earnings rise, Jefferies lifted the 2025 target price to ₹4,800, a 16% premium over the current market price. The article links to a Sona BLW corporate profile on the company’s website, offering an overview of its financials, product portfolio and recent project wins, and also to a Jefferies analysis that includes a detailed cost‑structure breakdown.

3. Indus Towers

Indus Towers, one of India’s largest telecom infrastructure providers, is seen as a long‑term winner in the report. Jefferies notes that the telecom sector’s continued digitization and the rollout of 5G will generate additional revenue streams for tower owners. The bank’s analysts point to a steady uptick in tower occupancy rates, thanks to a mix of long‑term leases and a growing appetite for co‑location services.

The research report projects revenue growth of 18% year‑on‑year over the next two years, propelled by rising rents per square meter. The revised 2025 target price is ₹480, up from ₹450, reflecting an 8% upside to the prevailing price. The article includes a link to the Jefferies’ in‑depth analysis on telecom infrastructure, where the team offers a sector‑wide comparison of key players, along with a forecast of net asset value growth.

4. Supreme Industries

Supreme Industries, a diversified manufacturing company with operations in chemicals, textiles and automotive parts, receives a BUY recommendation due to strong margin expansion and high‑growth product segments. Jefferies’ analysts highlight the company’s increased focus on premium products and a strategic push into emerging markets in Southeast Asia.

The note projects a 26% growth in net profit over the next three years, driven by higher commodity prices and cost efficiencies. Jefferies sets a 2025 target price of ₹3,200, an 11% upside over the current price. The article links to the company’s investor relations page, providing recent earnings releases and a detailed chart of revenue growth by segment, and also to Jefferies’ analysis that dissects the company’s balance‑sheet strength and dividend policy.

Market‑wide Implications

Beyond the individual company narratives, Jefferies’ note offers a broader view of India’s economic trajectory. The bank highlights that government reforms in infrastructure and industrial policy are expected to deliver steady GDP growth through 2025. Additionally, the authors note that inflationary pressures are likely to remain manageable as supply‑side improvements curb raw‑material cost volatility. This macro backdrop lends credence to the bullish outlook for the four names.

The Financial Express piece also contains links to supplementary content: a Jefferies’ “Research Portal” page that aggregates detailed earnings models and peer‑comparison tables; a Business Standard article that discusses the broader telecom infrastructure outlook; and an Economic Times feature that tracks India’s commodity price trajectory. By following these links, readers gain deeper insight into the assumptions underlying the equity recommendations.

Conclusion

Jefferies’ four‑company research note paints an optimistic picture for Indian Oil, Sona BLW, Indus Towers and Supreme Industries, each backed by robust demand, favorable cost structures and clear growth catalysts. The upgraded BUY recommendations and higher target prices reflect the bank’s confidence that these firms can capitalize on India’s expanding industrial base and digital economy. For investors tracking the Indian equity market, the Financial Express article offers a concise yet comprehensive snapshot of Jefferies’ latest valuation outlook, complete with direct links to source material for those wishing to delve deeper into the data.