Trent, PB Fintech to Marico: Macquarie rates 5 stocks ‘Outperform’ — Check revised target price

Across the reports, Macquarie pointed to demand resilience, capacity expansion, improving profitability and multi-year growth visibility as the key reasons behind its positive view.

Macquarie on Trent: ‘Outperform’

Macquarie retained its ‘Outperform’ rating on Trent with a 12-month target price of Rs 3,600, implying a 15.9% upside from the reference price used in the report. The brokerage said first-quarter operating EBITDA came in above both its estimates and Street consensus, supported by better-than-expected gross margins and lower employee costs. It also said management’s comments on demand and store additions strengthened its confidence in the company’s growth trajectory.

The brokerage said it liked the constructive demand outlook, management’s assertion that FY27 store additions would be similar to FY26, the expansion into new markets through Zudio stores and improving traction in newer brands and categories. While it acknowledged inflationary pressure on certain inputs, it believed the company had multiple levers to manage costs.

“While the current performance increases our confidence in Trent’s ability to navigate periods of moderate growth, we believe greater clarity on sales growth momentum is key to near-term performance,” Macquarie noted.

Macquarie on Avalon Technologies ‘Outperform’

Macquarie reiterated its ‘Outperform’ rating on Avalon Technologies and raised its 12-month target price to Rs 2,050, implying a 15.6% upside from the price considered in the report. The brokerage increased its target after a strong June quarter in which revenue, EBITDA and profit exceeded both its estimates and Bloomberg consensus. It also revised revenue and EBITDA forecasts upward after management increased FY27 growth guidance.

Macquarie said new products, new customers and expansion into new geographies were improving long-term visibility. It also expected continued support from precision engineering, clean energy, aerospace, power and data centre opportunities.

“Avalon’s pivot has accelerated growth, creating momentum that could drive further expansion, margin gains, and a stock re-rating,” Macquarie added.

Macquarie on PB Fintech ‘Outperform’

Macquarie maintained its ‘Outperform’ rating on PB Fintech with a 12-month target price of Rs 1,950, implying a 19.6% upside from the reference price in its report. The brokerage said revenue growth remained strong while profitability stayed in line with expectations as operating leverage continued to improve. It also pointed to the expansion of the renewal book, improving insurance profitability and narrowing losses in newer businesses.

The brokerage said total insurance premiums continued to grow faster than the industry, supported by product innovation and service quality. It also noted that management remained confident about dealing with potential regulatory changes relating to insurance commissions.

“We believe a strong expected earnings trajectory of 58% over FY26-28 supports the valuation profile of the stock,” Macquarie added.

Macquarie on Marico ‘Outperform’

Macquarie maintained its ‘Outperform’ rating on Marico and raised its 12-month target price to Rs 965, implying an 11.1% upside from the reference price used in the report. The brokerage increased its earnings estimates after the company delivered a stronger-than-expected first quarter and also raised its EBITDA growth guidance for FY27.

Macquarie said it liked the strong market share gains in Parachute, continued momentum in value-added hair oils, improving premium personal care sales and sustained growth in foods. It also noted that management was targeting consolidated sales of more than Rs 150 billion and 20% EBITDA growth during FY27.

“We like the industry-leading 11% volume growth and see potential tailwinds from continued volume strength in Parachute, stronger acceptance of shampoos, and continued strength in value-added hair oils, digital portfolio and foods,” as quoted by Macquarie.

Macquarie on UNO Minda ‘Outperform’

Macquarie retained its ‘Outperform’ rating on UNO Minda with a 12-month target price of Rs 1,383, implying a 13.3% upside from the reference price in the report. The brokerage said quarterly revenue exceeded its estimates while management continued to expand its product portfolio and manufacturing capabilities across core and electric vehicle-focused segments.

Macquarie said expansion into passenger vehicle seating, increasing alloy wheel and lighting capacity, and strengthening electric vehicle-specific products supported its positive view. It also noted that green mobility revenue grew 78% year on year during the quarter.

“We like Uno Minda given multiple growth drivers including: a) diversified revenue mix such as product additions, b) ongoing capacity addition in core products, c) structural upside from premiumisation, and d) strengthening EV-specific product portfolio,” Macquarie said.

Conclusion

Macquarie retained its ‘Outperform’ rating across all five companies after their latest quarterly updates, although the reasons varied by business. The brokerage pointed to stronger operating performance and demand trends at Trent, earnings momentum and profitability at PB Fintech, improving growth outlook at Marico, expanding long-term opportunities at Avalon Technologies and product expansion with capacity additions at UNO Minda..

Disclaimer: The stock ratings, target prices, and financial commentary featured in this report reflect the independent views of the brokerage (Macquarie) and do not constitute an offer, solicitation, or direct investment advice by Financial Express. Equity market investments are subject to market risks, and price targets or growth forecasts are not guarantees of future performance. Readers are strongly advised to conduct their own due diligence and consult a SEBI-registered financial advisor before making any investment decisions.

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