Jefferies Unveils Top Stock Picks: Lupin, Cummins India Surge Potential Up To 19%!

Jefferies has advised investors to focus on individual stock performance, noting that current Indian market dynamics prioritize delivery over general market direction.

**Lupin**: The brokerage reiterated its 'Buy' rating on Lupin with a target price of Rs 2,300, indicating a potential 17% upside. This call follows a strong performance in the September quarter, primarily driven by the US business, which saw sales reach $315 million, the highest since FY17. Quarterly revenue exceeded estimates by 8%, and EBITDA grew 33% year-on-year, with margins expanding significantly to 30.3%. Jefferies expects sustained strength from future product launches. The main risk highlighted is regulatory oversight from the US FDA.

**Cummins India**: Jefferies upgraded Cummins India to 'Buy', setting a target price of Rs 5,120, implying a 19% upside. The upgrade is supported by improved pricing discipline and increasing demand from data centers, which now constitute about 40% of domestic power-generation sales, diversifying earnings beyond traditional industrial demand. The brokerage forecasts a 22% EPS CAGR from FY25-28 and ROE above 30%.

**ABB India**: Despite a 22% beat in EBITDA, Jefferies downgraded ABB India to 'Hold'. The decision is based on moderating order inflows and what they perceive as stretched valuations. The target price is set at Rs 5,520, offering an approximate 10.5% upside. Key risks identified include pricing pressures and potential project execution delays.

Impact This news significantly impacts the Indian stock market as it provides clear investment recommendations and target prices from a major international brokerage. Investor sentiment towards Lupin, Cummins India, and ABB India is likely to be affected, potentially leading to stock price adjustments and increased trading activity. The insights into sector-specific demand drivers like data centers also offer broader market context. Rating: 8/10

Difficult Terms: * **EBITDA**: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating profit before accounting for non-operating expenses and capital costs. * **Margins**: Profit margins (like EBITDA margin) indicate a company's profitability by showing the percentage of revenue that remains after deducting costs. * **US FDA**: United States Food and Drug Administration. This agency regulates food, drugs, medical devices, and other products to ensure public health and safety. * **EPS CAGR**: Earnings Per Share Compound Annual Growth Rate. This is the average annual growth rate of a company's earnings per share over a specified period, assuming profits are reinvested. * **ROE**: Return on Equity. A profitability ratio that measures how much profit a company generates with the money shareholders have invested. * **Order Inflows**: The value of new orders that a company has received from its customers. This is an indicator of future revenue. * **Valuations**: The process of determining the current worth of an asset or a company. In stock markets, it refers to how the market prices a company's stock relative to its financial performance or assets.