Global brokerage firm Jefferies has recently released research reports highlighting promising stocks with the potential to deliver substantial returns in the short term. According to their latest analysis, several companies across different sectors show strong fundamentals and are poised for significant growth. Jefferies' analysts base their recommendations on a variety of factors, including company performance, market trends, and future growth prospects.

Larsen & Toubro (L&T)

Jefferies has given a "Buy" recommendation to Larsen & Toubro (L&T), with a target price of Rs 4,230, suggesting a 24% upside. This optimistic outlook is fueled by L&T's impressive performance in the June quarter and its record-high order book. The brokerage noted that L&T's Q1FY26 EBITDA exceeded expectations due to higher execution rates, and a 33% year-on-year rise in order inflows reinforces confidence in the company's 10% annual growth guidance. Jefferies believes the market is underestimating L&T's revenue potential, especially considering the strong performance of its international business, which has grown by 36% year-on-year while maintaining stable margins.

Bharti Airtel

Telecom giant Bharti Airtel has also earned a spot on Jefferies' "Buy" list, with a target price of Rs 2,045.50, indicating a potential 25% upside from current levels. Jefferies' analysis focuses on Bharti's standalone financials, which closely mirror its Indian operations and account for over 90% of its overall valuation. According to Jefferies, Bharti's standalone EBITDA margins rose by 210 basis points year-on-year in FY25, driven by strict control over network and sales costs. The company's fuel usage per site is already the lowest in the industry, and dealer commissions have been optimized, contributing to improved profitability.

GMR Airports Infrastructure

Jefferies also recommends buying GMR Airports Infrastructure, setting a target price of Rs 103.70, which implies a 12% upside from the current market price. The company's strong Q1 performance, marked by a 45% year-on-year jump in EBITDA, is attributed to the new tariff structure at Delhi airport and the ongoing recovery in air travel. Jefferies highlighted the positive impact of the new tariff at Delhi International Airport Limited (DIAL), even though traffic growth was somewhat muted due to a decline in Delhi. In contrast, Hyderabad airport (GHIAL) experienced a 17% growth in passengers, with domestic traffic rising over 19%.

Tata Steel

Jefferies is also positive on the Indian steel sector, with Tata Steel being a top pick to capitalize on the sector's upward momentum. Domestic hot-rolled coil (HRC) prices in China have increased by 8% over the past month, driven by expectations of production cuts under Beijing's "anti-involution" policy and a $167 billion stimulus-backed hydropower project. Jefferies expects Tata Steel to deliver 8-10% volume CAGR and 15-36% EBITDA CAGR over FY25-27E.

Jindal Stainless

Jindal Stainless (JDSL) is another top pick by Jefferies, with the brokerage maintaining a "Buy" rating and a price target of Rs 800, suggesting a 17% upside from the stock's current price of Rs 684.30. Jefferies anticipates that JDSL's EBITDA/tonne will increase to $200 in FY26 and $215 in FY27, up from $195 in FY25. The brokerage believes JDSL will benefit from easing imports, aided by BIS norms, a sequential recovery in exports, and a potential rebound in China SS spreads from a 10-year low.