BHEL, BEL, HAL, CG Power, L&T, KEI, Siemens: Jefferies shares target prices

Jefferies, in a fresh note, said the government’s intent on capex would be closely monitored for industrial stocks, as it sees defence and power as standouts in terms of capex visibility. The foreign brokerage picked five stocks namely Siemens Energy India Ltd, Hitachi Energy, Hindustan Aeronautics Ltd (HAL), KEI Industries Ltd and Larsen & Toubro Ltd as its preferred industrial picks with 25-51 per cent potential upside. In total, it assigned target prices to 16 stocks, including Bharat Electronics Ltd (BEL), BHEL and Data Patterns India Ltd.
 
Jefferies expects Siemens Energy Ltd to clock 43 per cent growth in earnings per share (EPS) compounded annually over FY25-28, driven by operating leverage and a robust power capex pipeline. The target for the stock is set at Rs 4,800, implying 51 per cent upside.

For Hitachi Energy, it believes the execution of a robust order book should drive operating leverage linked margin expansion and 54 per cent EPS CAGR over FY26-29E. The target price for this stock at Rs 45,790 hinted at 41 per cent upside potential.

HAL, Jefferies said, has visibility of 16 per cent EPS CAGR over FY26-30E on order book execution. It suggested a target of Rs 6,800 on the stock, with 42 per cent upside potential.

Jefferies said KEI Industries is a holistic play on power, capex, housing, and exports. It suggested a target of Rs 6,920 on the stock, hinting at 30 per cent upside.

Lastly, L&T has strong visibility with conservative guidance, which Jefferies said should drive upside. The brokerage suggested a target of Rs 5,000 on the stock, suggesting 25 per cent upside.

Target prices for BHEL, BEL, CG Power, Siemens

Jefferies said central govt's capex rose 54 per cent YoY in July. The year-to-date capex is up 30 per cent YoY vs budget estimate (BE) of 14 per cent rise. Jefferie note that FY26 capex was up 33 per cent YoY till July 2025, but full-year capex moderated to 2 per cent YoY growth.

"We watch capex ex-telecom and Department of Economic Affairs (DEA), which is also up 32 per cent YoY YTD vs 15 per cent  BE. YTD capex is tracking higher in road, rail, defence and transfer to states. We believe govt intent on capex will be monitored closely for industrial stocks," it said.