Why Jefferies, Morgan Stanley and Goldman Sachs remain bullish on India’s power and chemicals sectors
According to SBI Securities research, stocks like Navin Fluorine were already showing signs of technical outperformance, with the potential to hit new lifetime highs if key support levels hold.
India’s power and chemicals sectors are gaining investor attention as leading global brokerages project strong earnings growth, long-term demand tailwinds, and capex-led expansion. Reports by Jefferies, Morgan Stanley and Goldman Sachs point to potential 30–35 per cent annual EPS growth in top sectoral plays, with upside targets as high as Rs 5,650 on select counters.
Experts speaking to Zee Business Managing Editor Anil Singhvi, including SBI Securities’ Sudeep Shah, see scope for lifetime highs driven by capex momentum and rising demand.
Here’s a detailed look:
(Representational Images: Unsplash, Freepik, Pexels)
(Disclaimer: The views/suggestions/recommendations expressed here in this article are solely by investment experts. Zee Business suggests its readers consult their investment advisers before making any financial decision.
Jefferies bullish on Navin Fluorine; expects 35% EPS CAGR
According to a recent report by Jefferies, Navin Fluorine is well-positioned to deliver 35 per cent EPS CAGR until FY27, backed by Rs 2,000 crore capex over the past three years. The brokerage has maintained a ‘Buy’ rating with a target price of Rs 5,280, implying a ~10 per cent upside from current levels.
Navin Fluorine: Long-term contracts in pipeline
Jefferies highlighted that Navin Fluorine is in advanced talks for long-term contracts across its specialty chemicals, CDMO, and HPP segments. These are likely to be finalised in FY26 and contribute materially to revenues from FY28 onward.
Refrigerant gas headwinds won’t derail growth, says Jefferies
Despite growing competition in the refrigerant gas business, Jefferies believes Navin Fluorine will remain resilient. "Competitive intensity is rising, but the impact is expected to be limited," the note added.
Morgan Stanley upgrades Navin Fluorine
A day prior to Jefferies’ report, Morgan Stanley upgraded Navin Fluorine from underweight to equal weight, citing improving operational execution. It also increased the stock’s valuation multiple from 20x to 25x, a clear positive signal for investors.
Navin Fluorine| Technically strong; chartists eye new lifetime high
Deputy Vice President and Head of Technical and Derivative Research at SBI Securities, Sudeep Shah, in conversation with Zee Business Managing Editor Anil Singhvi, said the stock was already showing signs of outperformance. “We gave a buy call at Rs 4,400–Rs 4,450 with a target of Rs 4,800–Rs 5,000. It’s nearing that range. As long as it holds Rs 4,500–Rs 4,530, it could hit a new lifetime high,” he told Zee Business.
Navin Fluorine| CDMO business key to 50% growth in two years
According to Siddhartha Khemka, Head of Retail Research, Broking and Distribution at MOFSL, the Contract Development and Manufacturing Organisation (CDMO) business of Navin Fluorine is likely to grow over 50 per cent in the next two years, driven by demand in pharma, agrochemicals, and battery chemicals.
Navin Fluorine| Target revised
Khemka expects 40 per cent earnings growth going forward and has set a revised target of Rs 5,650–Rs 5,660 for Navin Fluorine. He also remains positive on SRF, citing a valuation gap and a fresh upside potential to Rs 3,500.
Schneider Electric| Goldman Sachs gives 20% upside
In the power space, Goldman Sachs has issued a bullish note on Schneider Electric, assigning a Rs 910 target price, about 20 per cent higher than current levels. According to the report, Q4 results reflected gains in both market share and margins, strengthening its long-term thesis.
Schneider Electric| Rs 46.75 lakh crore capex opportunity by FY50
Goldman Sachs noted that India’s power transmission capex requirement is expected to reach Rs 46.75 lakh crore by FY50. “Schneider’s focus on expanding its circuit breaker capacity places it favourably within this capex cycle,” the according to the brokerage.
Schneider Electric| 30% annual order inflow growth seen over next 3 years
Based on Schneider Electric’s positioning across grid infrastructure, switchgears, transformers, and distribution networks, Goldman Sachs expects the company’s order inflow to grow at ~30% annually for the next three years.
Power sector is core to India’s growth story, says market expert
Vijay Chopra, MD & CEO, Enoch Ventures emphasised that power companies are integral to India’s $5–10 trillion economy vision. “Whether it’s generation or distribution, power is a long-term play. Schneider, being a reputed multinational, is well-positioned. But wait for some correction before entering fresh,” he advised.