Synopsis : Jefferies has retained its bullish stance on TVS Motor, Shyam Metalics and JSW Infrastructure, raising target prices after reviewing their latest quarterly performance. Strong earnings visibility, market share gains and expansion plans continue to support the brokerage’s positive outlook.
Global brokerage Jefferies has maintained its positive outlook on TVS Motor Company, Shyam Metalics & Energy, and JSW Infrastructure, while increasing target prices across all three stocks following their latest quarterly results.
According to the brokerage, each company continues to benefit from strong business momentum, improving earnings visibility and long-term growth initiatives. Jefferies believes expanding capacities, healthy demand trends and operational execution position these companies well for sustained growth over the coming years.
Here's a closer look at the brokerage's latest views.
Jefferies on TVS Motor: 'Buy' maintained, target raised to ₹4,900
Jefferies has reiterated its 'Buy' recommendation on TVS Motor Company while increasing its target price from ₹4,500 to ₹4,900, implying an upside potential of around 29%.
The brokerage also raised its earnings-per-share estimates for FY27 to FY29 by 4-5% after the company delivered a stronger-than-expected June-quarter performance.
According to Jefferies, demand remains healthy across both domestic and export markets.
The brokerage noted that:
- Domestic two-wheeler wholesales accelerated during the second half of FY26.
- Strong momentum continued into Q1FY27.
- Vehicle registrations and exports also remained robust.
Jefferies expects the Indian two-wheeler industry to deliver double-digit growth during FY27 and projects an industry CAGR of around 8% between FY26 and FY29.
TVS Motor is expected to outperform the industry, with exports projected to grow at a 14% CAGR over the same period.
The brokerage also highlighted TVS Motor's improving competitive position.
The company achieved a 23-year high domestic market share of 20% during Q1FY27 despite softer demand in the moped segment.
Over the past decade, TVS has:
- Nearly doubled its motorcycle market share.
- Significantly strengthened its ICE scooter business.
- Built approximately 25% market share in electric two-wheelers.
Jefferies believes this improving franchise should support sustained earnings growth.
Although investments in subsidiaries remain elevated and their profitability will continue to be monitored, the brokerage expects TVS Motor to deliver:
- 13% volume CAGR between FY26 and FY29
- 24% EPS CAGR during the same period
The brokerage said:
"Two-wheeler demand is growing strongly in both India and export markets, and we like TVS' improving franchise. Peak margin concerns also appear to be behind."
Jefferies on JSW Infrastructure: Expansion story remains intact
Jefferies retained its 'Buy' recommendation on JSW Infrastructure while raising its target price from ₹370 to ₹400, indicating an upside potential of around 15%.
The brokerage marginally increased its earnings estimates after the company reported a resilient June-quarter performance despite temporary weakness in its logistics business.
According to Jefferies, port EBITDA increased 10% year-on-year, exceeding its estimates by around 2%, supported by:
- Healthy cargo volumes
- Strong operational efficiency
The brokerage remains optimistic about the company's long-term expansion strategy.
Management continues to target:
- Around 60% capacity expansion by March 2027
- Overall port handling capacity of 400 million tonnes by FY30
Jefferies noted that project execution remains on schedule.
Although logistics earnings softened during the quarter, the brokerage expects a recovery as:
- Operations at Navkar normalize.
- Newly added railway rakes contribute to higher throughput.
- Inland container depots become fully operational.
The company also continues to benefit from a diversified cargo mix and a healthy pipeline of expansion projects across both ports and logistics.
Jefferies said:
"Management targets 60% capacity addition by March 2027, while its goal of expanding capacity to 400 million tonnes by FY30 remains firmly on track."
Jefferies on Shyam Metalics: Growth plans support higher valuation
Jefferies also retained its 'Buy' recommendation on Shyam Metalics & Energy while increasing its target price from ₹1,150 to ₹1,250, implying an upside potential of around 17%.
Following stronger-than-expected quarterly earnings, the brokerage raised its earnings estimates for FY27-FY29 by 2-4%.
According to Jefferies, the company's long-term growth story continues to be driven by one of the industry's largest ongoing expansion programs.
Shyam Metalics is investing nearly ₹10,000 crore to expand capacity across multiple product categories.
By FY30, the company plans to:
- More than double carbon steel capacity to 4.4 million tonnes per annum
- Increase stainless steel capacity to 0.85 million tonnes
- Expand sponge iron capacity to 4.1 million tonnes
- Raise pig iron capacity to 1.5 million tonnes
The brokerage also believes profitability should improve as the product mix becomes richer.
Higher contributions from:
- Stainless steel
- Cold rolled steel
- Special Bar Quality (SBQ) products
are expected to support better margins over time.
Jefferies expects Shyam Metalics to deliver approximately 15% EPS CAGR between FY26 and FY29.
Management is also targeting nearly threefold growth in EBITDA by FY31.
The brokerage said:
"We continue to like the company's strong growth focus. Shyam Metalics aims to triple its EBITDA by FY31."
Conclusion
Jefferies continues to remain constructive on all three companies, although each represents a different investment theme.
TVS Motor stands out for its improving domestic market share, strong export momentum and leadership in electric mobility.
JSW Infrastructure continues to benefit from a large expansion pipeline that should significantly increase capacity over the next few years while strengthening its logistics business.
Meanwhile, Shyam Metalics offers a long-term manufacturing growth story driven by aggressive capacity expansion and an improving product mix that could support higher profitability.
Across all three companies, Jefferies believes visible earnings growth and long-term expansion plans continue to justify a positive investment outlook.
Disclaimer : The stock ratings, target prices and financial projections mentioned in this article are based on research reports published by Jefferies and are presented solely for informational and educational purposes. They do not constitute investment advice or a recommendation to buy, sell or hold any security. Investments in equities are subject to market risks, and future returns or target prices are not guaranteed. Investors should conduct their own due diligence and consult a SEBI-registered investment advisor before making any investment decisions.
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