Jefferies bets on these 11 stocks for the next five years: SBI, Zomato and…

Global brokerage firm Jefferies highlighted 11 stocks which are likely to deliver a Compound Annual Growth Rate of 15% to 25% in terms of returns over the next five years. The list includes: State Bank of India, Bharti Airtel, Zomato, Larsen & Toubro (L&T), and Macrotech Developers, among others. The brokerage firm said that these stocks are expected to double or triple in the next five years.

These are the 11 stocks that Jefferies advises investors to bet on in the next five years:

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1. Amber Enterprises: Calling Amber Enterprises a key beneficiary of India's manufacturing growth story, the brokerage said that its core competency in ACs and diversification into components will drive a Compound Annual Growth Rate of 36% over the financial years 2024 to 2030 in terms of earnings.
2. Ambuja Cements: The company will deliver strong operating outperformance over most of its peers, according to Jefferies which noted, “Consolidation will be positive for pricing over the long-term.”
3. Axis Bank: Axis Bank is likely to deliver an Earnings Per Share (EPS) CAGR of 18% over the financial years 2024 to 2029, Jefferies said, adding, “Platforms for hyper-personalisation, SME and rural loans will aid growth in loans.” Read more: LIC share prices down 10% in 5 sessions. What's happening? Will it fall more?
4. Bharti Airtel: Jefferies noted that Bharti Airtel will make progress owing to consistent market share gains, improving pricing environment with sufficient room for improvements in Average Revenue Per User (ARPU) as it expects Bharti Airtel to deliver a 12% to 13% CAGR over the financial years 2024 to 2030 in its India revenue or EBITDA.
5. JSW Energy: The company is likely to see three triggers play out over the next 12-24 months, according to Jefferies, which are: Improving visibility on Renewable Energy, commissioning of a 700 MW merchant capacity and progress on India's first green hydrogen plants. It said, “In the medium-term, the company's timely execution and prudent cash flow utilisation will keep multiples elevated and create further shareholder value.”
6. Larsen & Toubro: Jefferies said that L&T will benefit owing to India's capex upcycle, adding, “Medium-term, re-rating is also possible as EPS growth remains over 15% with surplus cash flow being given back to shareholders.” Read more: Adani Group stocks today: All 10 Adani group companies trade lower. Here's why
7. Macrotech Developers: Current housing capex upcycle makes Macrotech a key beneficiary and a reset in land values at its township land and expansion to new geographies, are the key valuation drivers, according to Jefferies.
8. Max Healthcare: Jefferies said that sustained growth momentum in the hospital business can make Max Healthcare a potentially 2.5x stock in five years.
9. State Bank of India: Jefferies expects SBI to benefit from its strong deposit franchise, improved digital offerings and leadership across lending segments. SBI can also monetise its stake in its subsidiaries and valuations also have a scope to re-rate, the brokerage note said.
10. TVS Motor: Jefferies noted, “TVS should be a key beneficiary of revival in Indian two-wheeler demand from an abnormally cyclical trough.”
11. Zomato: Jefferies called Zomato a “compelling food delivery play”, noting that “as the franchise generates strong free cash flows, capital allocation will be a key factor to watch.”