Global financial institution Macquarie has released its latest "India Bottom-Up Buy Ideas," highlighting key stocks that could offer substantial returns in different timeframes. This selection is divided into three major categories: Core Holdings (6 Stars), Tactical Ideas (6 Hitters), and High-Growth Picks (6 Rising Stars). Let's explore these recommendations in detail, along with target prices and key financial metrics.
6 STARS | Core Holdings Over 12-24 Months
These are high-quality, fundamentally strong stocks with solid long-term growth potential:
| Company | Ticker | Market Cap (US$ bn) | ADTV (US$ mn) | Price (Rs) | Target (Rs) | TSR (%) | P/E FY27E | EPSg FY25-27E | ROE FY27E |
|---|---|---|---|---|---|---|---|---|---|
| Tata Consultancy Services | TCS | 152.6 | 114.6 | 3,604 | 5,620 | 56% | 20.1x | 15% | 69% |
| HDFC Bank | HDFCB | 163.7 | 29.2 | 1,588 | 2,300 | 45% | 17.0x | 18% | 17% |
| Sun Pharmaceutical | SUNP | 48.7 | 39.9 | 1,564 | 2,100 | 34% | 22.4x | 16% | 20% |
| Mahindra & Mahindra | MM | 38.1 | 117.5 | 2,074 | 3,640 | 75% | 20.8x | 13% | 21% |
| Trent | TRENT | 22.8 | 87.5 | 3,654 | 5,600 | 53% | 72.0x | 37% | 20% |
| Power Finance Corporation | POWF | 16.0 | 5.0 | 413 | 660 | 63% | 7.0x | 10% | 18% |
6 HITTERS | Tactical Ideas Over 6 Months
These stocks have strong upside potential in the short term, driven by market catalysts and improving fundamentals:
| Company | Ticker | Market Cap (US$ bn) | ADTV (US$ mn) | Price (Rs) | Target (Rs) | TSR (%) | ROE FY27E |
| Reliance Industries | RELIANCE | 201.9 | 226.2 | 2,750 | 3,500 | 18% | 10% |
| NTPC | NTPC | 29.6 | 52.7 | 350 | 450 | 29% | 12% |
| Wipro | WPRO | 27.6 | 22.7 | 460 | 600 | 30% | 15% |
| Tata Motors | TTMT | 29.1 | 146.2 | 1,080 | 1,500 | 39% | 14% |
| Bharat Electronics | BHE | 25.8 | 30.4 | 280 | 400 | 43% | 18% |
| Shriram Finance | SHFL | 18.0 | 48.6 | 1,850 | 2,600 | 41% | 16% |
6 RISING STARS | Path to 2x in 3 Years
These high-growth stocks have the potential to double in value over the next three years:
| Company | Ticker | Market Cap (US$ bn) | ADTV (US$ mn) | Price (Rs) | Target (Rs) | TSR (%) | P/E FY27E |
| IRCTC | IRCTC | 6.8 | 16.2 | 974 | 2,500 | 157% | 31.5x |
| UNO Minda | UNOMINDA | 2.3 | 10.8 | 712 | 1,600 | 125% | 25.0x |
| Aditya Birla Capital | ABCAP | 2.7 | 8.5 | 198 | 500 | 152% | 18.0x |
| Devyani International | DEVYANI | 2.2 | 11.4 | 172 | 400 | 133% | 28.0x |
| Delhivery | DELHIVER | 2.1 | 9.7 | 320 | 750 | 134% | 30.0x |
| Lemon Tree Hotels | LEMONTRE | 1.2 | 6.0 | 170 | 400 | 135% | 22.0x |
Macquarie's recommendations provide valuable insights for investors looking to capitalize on India's economic growth. While "6 Stars" stocks offer stability, "6 Hitters" present short-term opportunities, and "6 Rising Stars" could deliver multi-bagger returns.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Stock market investments are subject to risks, and readers are advised to conduct their own research or consult financial experts before making investment decisions.
