Jefferies remains constructive on India’s engineering and construction sector, noting that FY25 order flows for its coverage universe rose 28% YoY.
Among individual companies, HAL and Siemens led the gains, with order flows rising 214% and 28% YoY, respectively. In particular, defence sector orders grew a robust 89% YoY, providing strong visibility for future earnings.
Jefferies also observed operating leverage benefits across most companies — led by defence names — which is expected to continue into FY26E.
The brokerage said power and defence remain high-visibility segments, while railways outlook has also improved.
Top picks in the sector include HAL, Siemens, L&T, and KEI.
Disclaimer: The views and target prices mentioned in this article are as stated by Jefferies. They do not represent the opinions or recommendations of this publication. Readers are advised to consult their financial advisors before making any investment decisions.
