Jefferies has analyzed industrial stocks, highlighting that many companies in the sector are trading 15-50% below their peak levels, despite being 2-8x higher than their February 2021 levels, when a capex-oriented budget was announced.
The brokerage compared current valuations to the 2010-20 down cycle, a period when capital expenditure (capex) growth remained in single digits. According to Jefferies, several key industrial players, including ABB, Siemens, Thermax, Larsen & Toubro (L&T), and BHEL, are trading at discounts to their historical down-cycle multiples on FY27 estimated price-to-earnings (P/E) ratios.
Meanwhile, Bharat Electronics Ltd (BEL) and KEI Industries are trading at the highest premiums compared to their historical valuations.
Among industrial stocks, Jefferies’ top picks include Siemens, Thermax, L&T, and Hindustan Aeronautics Limited (HAL), citing strong earnings visibility and long-term growth prospects.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a professional advisor before making investment decisions.
