Global brokerage firm, Macquarie has reshuffled its India Super 6s portfolio for July, replacing HDFC Bank, Torrent Pharmaceuticals and Axis Bank with ICICI Bank, Shree Cements and Power Grid Corporation of India across its core and tactical recommendation baskets. The brokerage said the changes follow a reassessment of its preferred investment ideas, with improving sector fundamentals, stronger earnings visibility and better return expectations driving the fresh inclusions.
The changes span two of the brokerage’s three flagship portfolios. ICICI Bank joins the long-term “6 Stars” basket in place of HDFC Bank, while Shree Cement and Power Grid have been added to the “6 Hitters” tactical portfolio, replacing Torrent Pharmaceuticals and Axis Bank, respectively. Macquarie retained its “6 Rising Stars” portfolio unchanged.
“We cut losses on HDFC B (-22% relative against MXIN since inclusion) and introduce ICICIBC. We include Shree Cement and PowerGrid to our tactical list while swapping out TRP (OP, +20%, at target) and AXSB (OP, -8%, margin improvement thesis tested),” Macquarie said in its latest India Super 6s report dated July 21.
Why ICICI Bank replaced HDFC Bank
Macquarie removed HDFC Bank from its core “6 Stars” portfolio after the stock underperformed the MSCI India Index by 22% since its inclusion.
The brokerage said HDFC Bank’s funding profile has weakened structurally and its margin outlook has become more volatile, affecting its earlier return-on-assets thesis.
“We believe ICICI’s ability to sustain growth with margins should result in it delivering sector-leading return ratios (2.3-2.4% ROA, 17% ROE). In contrast, HDFC Bank’s funding profile has become structurally weaker and its margin outlook more volatile which, in turn, has dented our ROA improvement thesis,” the report said.
Why Shree Cement was added
Macquarie introduced Shree Cement to its “6 Hitters” tactical basket, citing improving industry fundamentals and expectations of stronger profitability across the cement sector.
According to the brokerage, cement manufacturers are increasingly prioritising profitable growth instead of chasing market share, while easing input costs are expected to support margin recovery during the first half of FY27.
“Sector fundamentals continue to improve as producers prioritise profitable growth over market share, supporting our view that margins will trough in 1HFY27E amid easing input costs. Shree should benefit from robust volume growth (mid-teens in 1QFY27e) and relatively resilient North and East India pricing,” Macquarie said.
Macquarie India Super 6s: July Portfolio Reshuffle
| Previous Portfolio | Current Portfolio |
|---|---|
| Titan | Titan |
| Divi’s Laboratories | Divi’s Laboratories |
| JSW Steel | JSW Steel |
| TVS Motor | TVS Motor |
| Bharti Airtel | Bharti Airtel |
| HDFC Bank ❌ | ICICI Bank ✅ |
| Previous Portfolio | Current Portfolio |
|---|---|
| Dixon Technologies | Dixon Technologies |
| Marico | Marico |
| Hyundai Motor India | Hyundai Motor India |
| Bharat Electronics | Bharat Electronics |
| Torrent Pharmaceuticals ❌ | Shree Cement ✅ |
| Axis Bank ❌ | Power Grid ✅ |
| Portfolio |
|---|
| Delhivery |
| Tata Communications |
| Lenskart Solutions |
| Phoenix Mills |
| UNO Minda |
| Lemon Tree Hotels |
The inclusion comes as Torrent Pharmaceuticals exits the tactical portfolio after meeting the brokerage’s investment objective.
Macquarie said it swapped out “TRP (OP, +20%, at target),” indicating the stock had reached its target price following a nearly 20% gain.
Why Power Grid entered the tactical portfolio
Power Grid replaced Axis Bank in the brokerage’s tactical recommendations.
Macquarie believes the company’s proposed increase in borrowing capacity points to a faster capital expenditure cycle and stronger asset capitalisation as execution bottlenecks begin to ease.
“In our view the recent proposed increase in borrowing capacity signals confidence in a sharper capex and asset capitalisation ramp-up as execution bottlenecks ease, with potential upside to current expectations. 15x FY28 PE, 15%+ ROE, 3% Dividend Yield,” the brokerage said.
Axis Bank was removed after the brokerage’s investment thesis on margin improvement came under pressure.
Macquarie said it was swapping out “AXSB (OP, -8%, margin improvement thesis tested).”
Macquarie India Super 6s: Updated list
6 Stars (Core Ideas)
- Titan
- Divi’s Laboratories
- JSW Steel
- TVS Motor
- Bharti Airtel
- ICICI Bank
6 Hitters (Tactical ideas)
- Dixon Technologies
- Marico
- Hyundai Motor India
- Bharat Electronics
- Shree Cement
- Power Grid
6 Rising Stars
- Delhivery
- Tata Communications
- Lenskart Solutions
- Phoenix Mills
- UNO Minda
- Lemon Tree Hotels
Stocks removed from Macquarie India Super 6s
- HDFC Bank
- Torrent Pharmaceuticals
- Axis Bank
Conclusion
With the latest rejig, Macquarie has retained its preference for companies where it sees stronger earnings visibility, improving sector fundamentals and better return ratios, while exiting stocks where its original investment thesis has either played out or weakened.
The July review leaves the brokerage’s India Super 6s portfolio with three new playsacross its core and tactical baskets, while the six-stock Rising Stars portfolio remains unchanged.
Disclaimer: The insights and brokerage portfolio updates reported in this article are strictly for informational and educational purposes and do not constitute financial advice, an offer, or a solicitation to buy, sell, or hold any securities. Equity market investments are subject to market risks, and third-party analyst targets or past performance do not guarantee future returns. Readers are advised to perform their own due diligence and consult a SEBI-registered investment advisor before making any investment decisions.
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