Synopsis : Jefferies has a ‘Buy’ rating on GMR Airports, Max Healthcare and Aditya Birla Real Estate, with target prices indicating potential upside of 25%-35%. Traffic recovery, hospital capacity expansion and pan-India real estate growth are the key triggers.
Global brokerage Jefferies is positive on three Indian stocks — GMR Airports Infrastructure, Max Healthcare Institute and Aditya Birla Real Estate — with its target prices indicating potential upside of 25% to 35% from current levels.
However, the investment case is different for each company. GMR Airports is expected to benefit from a recovery in passenger traffic and the addition of new airports. Max Healthcare’s growth story is centred around additional beds, acquisitions and capacity expansion. Meanwhile, Jefferies sees Aditya Birla Real Estate evolving into a larger pan-India real estate platform.
Here are the key triggers behind the brokerage’s bullish calls.
GMR Airports: Traffic recovery could drive the next leg of growth
Jefferies has a ‘Buy’ rating on GMR Airports and has raised its target price to Rs 135 from Rs 125. The revised target implies around 30% upside.
The company reported a relatively steady Q1 performance, with EBITDA increasing 11% year-on-year to Rs 1,450 crore. Passenger traffic, however, grew only 1% during the quarter.
The relatively weak passenger growth was primarily affected by airline capacity cuts and softer traffic at Hyderabad airport.
Despite the pressure on passenger volumes, GMR Airports continued to see healthy growth in non-aeronautical revenue, which increased 12% year-on-year.
Jefferies expects the traffic environment to improve during the second half of FY27 as airline capacity gradually normalises.
The brokerage noted that management expects passenger traffic to recover in 2HFY27 as airline capacity improves.
The addition of Nagpur and Bhogapuram airports could provide another source of growth for GMR Airports over the longer term.
For investors, the key near-term trigger remains the recovery in passenger traffic and any easing of disruptions linked to the West Asia situation.
Max Healthcare: New beds and acquisitions could accelerate growth
Jefferies has retained its ‘Buy’ rating on Max Healthcare and raised its target price to Rs 1,260 from Rs 1,230. The target indicates around 25% potential upside.
The company’s June quarter performance was broadly in line with expectations. Revenue increased 15% year-on-year, while EBITDA also grew 15%.
Hospital occupancy stood at 75% during the quarter.
Max Healthcare is currently dealing with delays in some of its capacity-expansion projects. However, there are several developments that could support growth going forward.
The company has completed the acquisition of Kalinga Hospital, while 202 additional beds at Max Smart are already operational.
Jefferies also expects the impact from discontinued oncology drugs to gradually fade from December 2026, which could provide some relief to earnings.
Despite the near-term challenges, the brokerage expects Max Healthcare to deliver an EBITDA CAGR of around 18% between FY26 and FY29.
That makes capacity additions, new beds and acquisitions the key factors to watch as the company attempts to sustain its growth trajectory.
Aditya Birla Real Estate: Jefferies sees a broader pan-India opportunity
Jefferies has initiated coverage on Aditya Birla Real Estate with a ‘Buy’ rating and a target price of Rs 1,880.
The target implies around 35% potential upside, making it the highest upside among the three stocks covered by the brokerage.
Jefferies believes Aditya Birla Real Estate has evolved significantly beyond its traditional textile roots and is increasingly becoming a pan-India real estate player.
One of the biggest indicators of this transition is the geographic mix of its sales.
Around 78% of the company’s FY26 pre-sales came from outside the Mumbai Metropolitan Region, highlighting its increasing exposure to markets beyond its traditional Mumbai base.
The brokerage also highlighted the strength of the Birla brand and the company’s execution capabilities.
According to Jefferies, the company’s pre-sales quadrupled between FY23 and FY25, supported by its brand and stronger sales execution.
The balance sheet provides another reason for optimism.
Following the sale of its non-core pulp and paper business for Rs 3,500 crore, the company’s net gearing has effectively fallen to zero.
Jefferies believes this provides Aditya Birla Real Estate with greater financial flexibility as it expands its development pipeline.
The company’s Central Mumbai land bank could also become an important long-term contributor to profitability.
Jefferies is targeting a return on equity of around 20%, adding to its positive view of the business.
What investors should watch
For GMR Airports, the biggest near-term trigger is a recovery in passenger traffic as airline capacity normalises. Any easing of West Asia-related disruptions could further support the outlook.
For Max Healthcare, investors will be watching the pace of new-bed additions, expansion projects and the benefits from recent acquisitions. The ability to maintain strong occupancy while expanding capacity will be important for sustaining earnings growth.
For Aditya Birla Real Estate, project launches, land acquisitions and the expansion of its commercial property pipeline will remain key drivers. The company’s stronger balance sheet also gives it greater room to pursue growth opportunities.
Overall, Jefferies’ three ‘Buy’ calls represent three different investment themes — traffic recovery at GMR Airports, capacity-led healthcare growth at Max Healthcare and a pan-India real estate expansion story at Aditya Birla Real Estate.
The brokerage’s target prices imply potential upside of around 30% for GMR Airports, 25% for Max Healthcare and 35% for Aditya Birla Real Estate.
Disclaimer: This article is based on research reports from one or more brokerage firms and is for informational purposes only. The views, target prices and recommendations expressed are those of the respective brokerage firms and do not reflect the official policy or position of Financial Express. This should not be construed as an offer, solicitation or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and consult a SEBI-registered financial advisor before making any investment decisions.
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