Global Brokerage Macquarie Outlines a Strategic India-Focused Investment Blueprint
In a newly released strategy note, global investment and brokerage firm Macquarie has unveiled a comprehensive list of stock ideas for Indian markets, structured into three distinctive categories—“6 Stars,” “6 Hitters (Tactical),” and “6 Rising Stars.” These curated selections reflect Macquarie’s bullish stance on Indian equities amid evolving macroeconomic conditions and robust domestic fundamentals. The report spans a diverse mix of sectors, giving investors a variety of long-term and tactical investment options in what is increasingly viewed as one of the most attractive emerging markets globally.
Each category is defined not only by performance potential but also by sectoral representation and risk profile. The “Stars” comprise large-cap leaders with consistent earnings visibility and strong market positioning. The “Hitters” represent tactical bets for short- to medium-term outperformance, while the “Rising Stars” reflect newer entrants or turnaround stories with scalable growth opportunities over a longer investment horizon.
Macquarie’s strategy categorizes Indian stocks into “Stars,” “Tactical Hitters,” and “Rising Stars.”
Each category includes six handpicked companies based on valuation upside, sectoral tailwinds, and growth potential.
The note comes amid global investors increasingly viewing India as a long-term growth destination.
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“6 Stars”: Market Leaders with Long-Term Potential
Macquarie’s “6 Stars” list highlights companies that it believes offer robust long-term returns with strong fundamentals and enduring business models. The list includes Tata Consultancy Services (TCS), HDFC Bank, Sun Pharmaceutical Industries, Mahindra & Mahindra (M&M), Trent, and Power Finance Corporation (PFC).
A standout pick in this basket is Trent, the Tata Group’s retail arm, on which Macquarie has initiated coverage with an ambitious target price of ₹7,000. According to the brokerage, Trent is well-positioned to dominate the Indian and broader Asian retail landscape through its scalable business model, increasing store count, and strong brand equity. The company’s flagship retail chains, including Westside and Zudio, have demonstrated significant momentum across Tier 1 and Tier 2 cities.
TCS and HDFC Bank continue to be seen as foundational India equity plays given their dominant sectoral positions.
Sun Pharma benefits from global generic opportunities and a strong domestic presence.
Trent’s ₹7,000 target price reflects its aggressive expansion strategy and category leadership in retail.
M&M is backed by a robust SUV and tractor portfolio and innovation in the EV space.
PFC gains from sustained power sector reforms and strong asset quality.
“6 Hitters”: Tactical Opportunities for Medium-Term Gains
The “Hitters” category focuses on tactical investment calls, particularly suitable for investors looking for 6- to 12-month returns amid structural reforms and earnings upgrades. Stocks in this list include Reliance Industries, NTPC, Wipro, Tata Motors, Bharat Electronics Limited (BEL), and Shriram Finance.
Among these, Tata Motors has garnered notable attention with an “Outperform” rating and a target price of ₹826. Macquarie highlights the company’s commitment to restoring Jaguar Land Rover’s (JLR) net cash balance sheet by March 2025, which could be a critical re-rating catalyst. JLR’s improving margins, coupled with a renewed product portfolio and increasing EV penetration, support the bullish thesis.
Reliance Industries remains a staple for tactical allocation, driven by clarity on its demerger plans and strong earnings in the consumer and new energy segments. NTPC is benefiting from the government’s green energy push, while BEL is gaining due to record defense spending and order inflows.
Tata Motors’ cash flow visibility and JLR revival underpin its ₹826 target.
Wipro’s performance could be catalyzed by margin improvement and cost rationalization.
NTPC and BEL gain from energy transition policies and defense capital outlays, respectively.
Shriram Finance stands to benefit from robust credit demand in Tier 2 and Tier 3 cities.
“6 Rising Stars”: High-Growth Stocks for Long-Term Investors
The “Rising Stars” bucket includes emerging names with strong earnings growth potential and compelling business models. This segment includes IRCTC, Uno Minda, Aditya Birla Capital (AB Capital), Devyani International, Delhivery, and Lemon Tree Hotels.
Macquarie has assigned an “Outperform” rating to AB Capital, forecasting the stock could potentially double over the next three years. The brokerage has set a 12-month price target of ₹260, citing improving margins in its NBFC business and growing traction in its mutual fund arm. AB Capital’s strategic restructuring and digital transformation initiatives are expected to unlock substantial shareholder value.
Uno Minda, another “Rising Star,” has received a target price of ₹1,157. The company’s strength lies in its diversified auto components portfolio and multi-country presence. Macquarie expects continued order wins from both internal combustion engine (ICE) and EV OEMs, which will support sustainable topline expansion.
Meanwhile, Devyani International, which operates major QSR brands such as KFC and Pizza Hut, is backed by strong discretionary consumption trends and expanding store footprints. The brokerage is optimistic on the overall restaurant and hospitality segment, where changing urban consumer behavior is expected to drive secular growth.
AB Capital is projected to double in three years, driven by financial services diversification.
Uno Minda’s ₹1,157 target is supported by component diversification and EV opportunities.
Devyani International and Lemon Tree Hotels benefit from rising urban consumption and tourism.
Delhivery is expected to consolidate its logistics operations and improve unit economics.
IRCTC continues to be favored for its monopoly position in Indian railway ticketing and services.
Broader Themes Driving Macquarie’s India Strategy
Macquarie’s note suggests that India is at the cusp of a structural transformation, driven by a combination of domestic consumption, digital adoption, and public sector reforms. The brokerage maintains that macro stability, robust FDI flows, and policy continuity are setting the stage for strong market performance across sectors.
From consumer demand in Tier 2 cities to rising infra spending and a formalization of the financial sector, the structural tailwinds for India Inc. are now aligned with global capital reallocation trends. Macquarie’s framework, which mixes blue-chip stability with tactical trades and emerging growth stories, is seen as an effective roadmap for navigating Indian equities in 2025 and beyond.
India remains one of the top EM destinations for long-term portfolio investments.
Domestic consumption, financial inclusion, and infrastructure growth are central to the bullish case.
Sectoral exposure is balanced between traditional value plays and new-economy growth stocks.
Macquarie’s playbook is tailored to exploit near-term volatility while capturing long-term upside.
