Stocks To Buy: Jefferies sees 20% upside on this industrial name; 'Neutral' on CG Power

Global brokerage firm Jefferies has initiated coverage on India's industrial sector, starting with Hitachi Energy India Ltd. and CG Power and Industrial Solutions Ltd.

It has given a 'Buy' rating on Hitachi Energy with a price target of ₹25,000, and a 'Hold' rating on CG Power with a target of ₹745.

Jefferies expects Hitachi Energy and Siemens Energy to record earnings per share (EPS) CAGR of 81% and 61%, respectively, over FY25-27, driven by India's power transmission and distribution (T&D) capital expenditure more than doubling during the period.

The brokerage said strong share price performance is likely to continue, aided by margin expansion and robust order inflows.

For CG Power, Jefferies estimates a more moderate 32% EPS CAGR, as weakness in its industrial segment is expected to offset some of the growth momentum from its power division.

The brokerage said that Hitachi Energy's order book, currently at 4.6 times FY25 sales, provides strong revenue visibility. It values the stock at 70x September 2027 earnings.

In Monday's trade, Hitachi Energy shares were up 2% at ₹21,264, while CG Power shares slipped 0.6% to ₹729.90.