Macquarie has retained TVS Motor, Divi’s Laboratories and Titan as its top conviction ideas in India despite all three trading near one-year highs, saying the companies continue to deliver business momentum that supports further gains. In its latest India Super 6 – What’s Up strategy note, the brokerage kept the three stocks in its ‘Stars’ basket and said Phoenix Mills has joined the ‘Rising Stars’ list after recent weakness in its share price.
It has retained Bharat Electronics, Dixon Technologies and Hyundai Motor India in its tactical ‘Hitters’ category. .Macquarie describes Super 6 as its research team’s “bottom-up best ideas organised as six ideas in three categories (Stars, Hitters, Rising Stars) across the 150 stocks under coverage.” \
The latest review says further gains were seen across Divi’s Laboratories, TVS Motor and Titan, while Bharat Electronics and Phoenix Mills lagged after their recent updates.
Macquarie on TVS Motor: Retains in ‘Star’ basket
Macquarie continues to include TVS Motor in its ‘Stars’ basket after the company’s June quarter performance exceeded expectations.
The brokerage said TVS Motor delivered stronger-than-expected profitability while management remained constructive on demand. It added that the stock has already rallied sharply over the past year but believes operating momentum continues to support its positive view.
“Delivered better-than-expected margins in the Jun-Q and provided a solid demand outlook; notably, stock is up ~50% over the past year and at all-time highs,” Macquarie said.
According to the brokerage, TVS Motor remains one of its preferred ideas because earnings execution continues to support the stock despite the strong run over the last twelve months.
Macquarie on Divi’s Laboratories: Retains in ‘Star’ basket
Macquarie has retained Divi’s Laboratories in its ‘Stars’ category, saying expectations are improving for the company’s contract development and manufacturing business.
The brokerage believes recent developments across global CDMO peers are creating a favourable read-across for Divi’s Laboratories. It also expects the company to benefit from the significant manufacturing capacity it has added during the past three years as utilisation improves.
“Likely benefited from positive CDMO peer read-across and rising expectations that it will monetize the significant capacity added over the past three years,” Macquarie said.
Macquarie believes improving capacity utilisation remains one of the important factors supporting its positive stance on the company.
Macquarie on Titan: Retains in ‘Star’ basket
Titan Company also continues to feature in Macquarie’s highest-conviction basket.
The brokerage said weaker-than-expected volume growth in the consumer staples segment has encouraged market participants to rotate towards consumer discretionary companies, with Titan emerging as one of the beneficiaries.
“Weaker-than-expected volume trajectory in the Staples sector has driven further rotation into Discretionary; we have high confidence in growth for Titan,” Macquarie said.
According to the brokerage, confidence in Titan’s growth outlook remains intact despite broader concerns around consumption.
Macquarie on Bharat Electronics: ‘Hitter’
Macquarie has retained Bharat Electronics in its ‘Hitters’ category after reviewing its latest quarterly performance.
The brokerage said the defence company reported healthy revenue growth and maintained constructive order guidance. However, the stock came under pressure after investors reacted to lower margins and softer full-year expectations.
“Delivered strong revenue growth and constructive order guidance, though shares fell on lower margins and full expectations,” Macquarie said.
Macquarie nevertheless continues to classify Bharat Electronics as one of its tactical ideas.
Macquarie on Dixon Technologies: ‘Hitter’
Dixon Technologies remains part of the brokerage’s ‘Hitters’ basket.
Macquarie said the stock has continued its recent gains as the market responded positively to the government’s continued support for electronics and smartphone manufacturing in India.
“Extended recent gains as market responded positively to the government’s supportive stance on electronics and smartphone manufacturing,” Macquarie said.
The brokerage believes policy support continues to support sentiment towards electronics manufacturing companies.
Macquarie on Hyundai Motor India: ‘Hitter’
Macquarie said Hyundai Motor has recorded modest gains as expectations around margin resilience continue to improve.
The brokerage also expects the company’s market share to stabilise and improve during the second half of FY27.
“Mild gains on growing consensus around margin resilience in 1Q and market share stabilisation / improvement in 2HFY27,” Macquarie said.
Macquarie on Phoenix Mills: ‘Rising Star’
Macquarie has added Phoenix Mills Ltd. to its ‘Rising Stars’ category.
The brokerage said the company continued to deliver healthy growth in mall rentals. However, delays in commissioning new malls and weaker residential sales resulted in an earnings miss, causing the stock to lag despite continued operational growth.
“Reported robust mall rental growth, but shares declined on delayed mall commissioning timelines, while weaker residential sales led to an earnings miss,” Macquarie said.
Macquarie nevertheless believes Phoenix Mills merits inclusion in its Rising Stars basket.
Conclusion
Macquarie’s latest review does not change the composition of its highest-conviction ideas, with TVS Motor, Divi’s Laboratories and Titan continuing to occupy the ‘Stars’ category. Bharat Electronics, Dixon Technologies and Hyundai Motor India remain tactical picks under ‘Hitters’. Phoenix Mills enters the ‘Rising Stars’ basket after recent underperformance. The brokerage’s latest note suggests it continues to favour companies where operating performance remains intact, while also identifying businesses that could benefit as sentiment improves.
Disclaimer: This article reports on third-party brokerage research opinions and does not constitute financial advice, an offer, or a solicitation to buy or sell any security. Stock market investments are subject to market risks, and brokerage calls, ratings, or stock basket inclusions may change based on dynamic market conditions. Readers should conduct independent analysis and consult a SEBI-registered investment advisor or qualified financial professional before making any investment decisions.
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