- Jefferies identifies 36 Indian cos in space, semiconductors, data centers, electronics, solar, aerospace.
- India aims to grow its space economy five-fold by 2030, with data centers expanding five-fold
- Jefferies rates 16 stocks Buy, 7 Hold, 2 Underperform, favoring semiconductor and solar manufacturing players
In Frank Herbert's Dune, an empire's fortunes turn on who controls a single, unglamorous resource buried under a desert planet's sand. Jefferies' latest strategy note on India reads a little like that plot, except the resource this time is silicon, satellites and solar cells, and the brokerage has already picked its winners.
In a report titled "India's New Industrial Revolution", Jefferies mapped 36 listed companies across six emerging sectors, space, semiconductors, data centers, electronics, solar manufacturing and aerospace, that it believes will define the next leg of India's manufacturing story.
The brokerage is bullish on most of its coverage: 16 stocks carry a Buy rating, seven are rated Hold, and only two, ABB India and Waaree Energies, draw an Underperform tag. The remaining 11 names, including Azad Engineering, Sansera Engineering and Raymond, sit outside Jefferies' own coverage and appear in the note for reference, with estimates sourced from Bloomberg consensus.
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Mapping India's industrial push.
Photo Credit: NDTV Profit
The thesis: India already ranks among the world's top two or three manufacturers in categories from steel to cement to solar modules, and that base is now being extended into higher-value, policy-backed industries. Jefferies expects India's space economy to expand five-fold to $40-45 billion by 2030, its data center capacity to grow five-fold to 10 GW over the next five years, and roughly 90% of the solar manufacturing value chain to be localised by the same year.
Sector by sector, the picks:
Semiconductors: Jefferies rates Kaynes Technology a Buy, pointing to its shift from smart meters toward core electronics manufacturing and an upcoming ramp in OSAT (outsourced semiconductor assembly and test) and PCB (printed circuit board) revenue. CG Power, which began commercial chip packaging with Japan's Renesas in July, gets a Hold.
Data centers: This is the report's largest coverage bucket, running to 19 names. Jefferies is bullish on the power and backup infrastructure suppliers it expects to benefit most from the sector's $45 billion capex build-out, including Hitachi Energy, Siemens Energy, Cummins India, Polycab and KEI Industries, all rated Buy. ABB India is the lone Underperform in the group, with the brokerage flagging tougher competitive pressure on its products relative to pure transmission and distribution players. Bharti Airtel, via its Nxtra data center arm, also carries a Buy.
Electronics: Jefferies prefers component makers over pure assemblers as India's Components Scheme pushes localisation of mobile phone parts from under 20% of bill of materials today toward roughly 50% by FY32. Kaynes gets the sector's Buy call here too; Dixon Technologies and Syrma SGS Technology are both rated Hold, with Jefferies flagging rising memory costs and stretched valuations, respectively.
Solar manufacturing: Emmvee Photovoltaic Power and Premier Energies are Jefferies' top picks, both rated Buy, on the back of debt-light balance sheets and existing solar cell capacity. Waaree Energies, India's largest listed solar maker by market value, is rated Underperform, with Jefferies favouring smaller, more focused players in a market it expects to consolidate as cell and wafer shortages persist through FY30.
Aerospace: Bharat Forge and Samvardhana Motherson carry Buy ratings as suppliers to Boeing, Airbus and other global manufacturers navigating a backlog of over 17,000 aircraft. Belrise Industries also gets a Buy. Sansera Engineering, Azad Engineering and Raymond feature in the note without formal Jefferies coverage.
Space: There are no pure-play space stocks in the note. India's space start-ups, Skyroot, Pixxel, Agnikul and Digantara among them, remain privately held for now, so the sector's only listed proxies, CG Power and Kaynes Technology, are counted under semiconductors instead.
The report lands as the government rolls out a second phase of its semiconductor incentive scheme worth Rs 1.28 lakh crore and prepares to extend domestic content mandates across the solar supply chain from June 2028.
Stock calls by Jefferies: Buy, Sell or Hold?
Photo Credit: NDTV Profit
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