Stocks to Buy: HAL, Coal India, Indigo among 14 buy-on-dips ideas by Jefferies

Stocks to Buy: A steep correction is underway in the markets and as per Jefferies India, more than a fifth of the stocks under its coverage are trading below the June election results lows while around 30% are down more than 20% from year-to-date peaks. These include Hindustan Aeronautics Ltd, Coal India Ltd, InterGlobe Aviation Ltd, Godrej Consumer Products Ltd, Punjab National Bank, Macrotech Developers Ltd, Cholamandalam Investment and Finance Company Ltd, Dabur India Ltd, GMR Airports Infrastructure Ltd, Supreme Industries Ltd, IDFC First bank Ltd, KEI Industries Ltd, Mahanagar Gas Ltd, and Honasa Consumer Ltd. Key factors to drive upside Hindustan Aeronautics - Jefferies expects an addressable opportunity for India defence players to rise at a 14% CAGR in FY24-30 driven by a) government’s indigenisation efforts driving 13% CAGR in domestic defence spend versus. Coal India- India's strong economic growth outlook, rising power consumption and thermal capacity additions should fuel healthy 5% volume growth for COAL over FY24-27 as per Jefferies estimates. Supreme Industries - Given Supreme's superior execution in terms of continued strong volume growth and margin resilience, Jefferies forecasts higher earnings CAGR over FY24-27 at more than 22% versus historical 15% plus over FY18-23. Mahanagar Gas Ltd - Mahangar Gas stock has corrected sharply and trades at a 10% discount to Indraprastha Gas on a forward price-to-earnings basis despite a stronger volume growth outlook, said Jefferies Honasa Consumer: Jefferies expects Honasa to reach double-digit EBITDA margins by FY26 versus 7% in FY24.