Jefferies Picks 3 Stocks for India’s Industrial Boom: Kaynes, Bharat Forge, Siemens Energy
The project was inaugurated by Mr. TBC Lalvenchunga, Advisor to the Chief Minister (Image Bharat Forge on X)
By S. JHA
Kaynes Technology, Bharat Forge and Siemens Energy India offer exposure to India’s electronics, defence and power-infrastructure expansion.
Mumbai, September 14, 2026 — India’s next industrial investment cycle is beginning to move beyond traditional manufacturing, with electronics components, defence production, power transmission and new-age infrastructure emerging as major growth themes.
In its September 2026 industrial-stock coverage, Jefferies has a Buy rating on 16 companies, according to the brokerage’s stock-call list. Among those names, Kaynes Technology, Bharat Forge and Siemens Energy India stand out for investors looking for exposure to three different but interconnected parts of India’s industrial transformation.
The three companies offer exposure to electronics localisation, defence indigenisation and the power infrastructure required to support India’s expanding economy and data-centre ecosystem.
Kaynes Technology: The electronics localisation play
Kaynes Technology is arguably the most direct way to play India’s transition from electronics assembly towards deeper domestic manufacturing.
Jefferies has identified Kaynes as its preferred stock among the major EMS companies, with a Buy rating and a projected 24% upside in its recent analysis.
The reason is significant: India’s electronics story is moving beyond simply assembling smartphones.
The government is increasingly pushing component manufacturing through initiatives such as the Electronics Components Manufacturing Scheme (ECMS). Jefferies expects this transition to favour companies with greater backward integration and exposure to components.
Kaynes has already invested in areas including PCB manufacturing and semiconductor-related OSAT operations, positioning it further up the electronics value chain, per a report in The Financial Express.
This differentiates Kaynes from more assembly-oriented peers.
The broader opportunity is substantial. Jefferies estimates India’s electronics production has doubled over five years, while the country’s next phase of growth is expected to involve greater domestic value addition and component manufacturing, added the financial daily.
Why Kaynes makes the top three: India’s electronics opportunity is shifting from “Make in India” assembly to “Make in India” components. Kaynes is positioned at that transition point.
Bharat Forge: Defence and global manufacturing
Bharat Forge offers a different route into India’s industrial expansion — through automotive components, defence and advanced engineering.
Jefferies has highlighted Bharat Forge as a preferred auto-component stock, citing earnings potential and operating leverage, per a report by NDTV Profit.
The defence opportunity adds another layer to the story.
India’s Defence Acquisition Council recently approved procurement proposals worth approximately ₹1.10 lakh crore, with 98% of the procurement value expected to come from domestic industry.
Bharat Forge is among the companies positioned to benefit, particularly through its defence subsidiary Kalyani Strategic Systems and its growing capabilities in land systems and naval power systems, per a report in The Financial Express.
The company is therefore sitting at the intersection of two major themes: India’s defence indigenisation drive and the global diversification of manufacturing supply chains.
For Jefferies, the auto-component opportunity also has an earnings angle. Auto ancillaries have been outperforming OEMs, with stronger operating leverage and broader opportunities beyond traditional vehicle manufacturing, added NDTV Profit.
Why Bharat Forge makes the top three: It combines industrial manufacturing, defence, exports and engineering, giving investors exposure to India’s domestic capex cycle as well as global manufacturing demand.
Siemens Energy India: The power infrastructure bet
The third pick is Siemens Energy India, which provides perhaps the most important infrastructure link between India’s industrial expansion and its growing electricity requirements.
Jefferies has previously identified Siemens Energy India among its preferred industrial names, alongside Hitachi Energy and KEI Industries, citing strong visibility in defence and power-sector capital expenditure, per a report in Business Today.
Other brokerages have also turned bullish.
Prabhudas Lilladher upgraded Siemens Energy India to Buy, with a target of ₹3,655, citing the structural power transmission and generation upcycle, rising domestic demand and growing export opportunities, per a report in Moneycontrol.
The transmission opportunity is particularly important.
India needs substantial investment in transformers, switchgear, substations, grid stabilisation and transmission infrastructure as renewable energy capacity expands and electricity demand rises.
There is another emerging demand driver: data centres.
Jefferies estimates India’s data-centre capacity could increase from around 2 GW to 10 GW by 2031, representing a potential $45-billion investment opportunity across power, cooling, construction and networking infrastructure, said The Financial Express in a report.
Siemens Energy India is therefore not simply a conventional power-equipment story. It is increasingly a play on grid expansion, renewable integration, industrial electrification and AI/data-centre power demand.
Why Siemens Energy makes the top three: India’s industrial boom cannot happen without electricity and transmission infrastructure. Siemens Energy sits directly in that bottleneck.
What makes the three interesting is that they are not dependent on a single economic cycle.
Kaynes represents India’s push into higher-value electronics manufacturing.
Bharat Forge represents the combination of defence indigenisation and advanced engineering.
Siemens Energy India represents the infrastructure required to power the entire transformation.
What investors should watch
The bullish thesis does not eliminate risks.
For Kaynes, valuation and execution of capital-intensive expansion remain important.
For Bharat Forge, investors need to watch defence order conversion, execution and global auto demand.
For Siemens Energy India, the key variables include execution of large transmission orders, capacity expansion and the timing of power-sector investments. Prabhudas Lilladher specifically flags execution and timing of large orders as important monitorables.
The three stocks therefore represent a useful snapshot of where Jefferies sees India’s industrial story heading: from assembly to components, from imports to defence manufacturing, and from electricity generation to sophisticated power infrastructure.
(This article discusses brokerage views and structural themes and should not be construed as individual investment advice.)
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