Macquarie has retained TVS Motor, Divi's Laboratories and Titan as its top conviction ideas in India despite all three stocks trading near one-year highs. According to the brokerage's latest India Super 6 – What's Up strategy note, the companies continue to deliver business momentum that supports further gains. The brokerage 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." In its latest review, Macquarie noted that further gains were seen across Divi's Laboratories, TVS Motor and Titan, while Bharat Electronics and Phoenix Mills lagged after their recent updates. The latest review confirms that 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.
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. As reported by Macquarie, the stock has already rallied sharply over the past year, rising approximately 50% and reaching all-time highs. The brokerage noted that the company delivered better-than-expected margins in the June quarter and provided a solid demand outlook, with Macquarie adding that "operating momentum continues to support its positive view" despite the strong run over the last twelve months. According to the latest review, TVS Motor remains one of Macquarie's preferred ideas because earnings execution continues to support the stock despite the strong run over the last twelve months.
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. According to Macquarie, the company is likely to benefit from the significant manufacturing capacity it has added during the past three years as utilisation improves. The latest review emphasizes that Divi's Laboratories 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 believes improving capacity utilisation remains one of the important factors supporting its positive stance on the company.
Titan Company continues to feature in Macquarie's highest-conviction basket as weaker-than-expected volume growth in the consumer staples segment has encouraged market participants to rotate towards consumer discretionary companies. As reported by Macquarie, weaker-than-expected volume trajectory in the consumer staples segment has driven further rotation into Discretionary, with Titan emerging as one of the beneficiaries. The brokerage said it has high confidence in growth for Titan, with confidence in the company's growth outlook remaining intact despite broader concerns around consumption. Macquarie's latest review confirms that weaker-than-expected volume trajectory in the Staples sector has driven further rotation into Discretionary, reinforcing Titan's position as a preferred idea in the discretionary space.
Macquarie has retained Bharat Electronics, Dixon Technologies and Hyundai Motor India in its tactical 'Hitters' category. According to the brokerage, Bharat Electronics reported healthy revenue growth and maintained constructive order guidance, though the stock came under pressure after investors reacted to lower margins and softer full-year expectations. Dixon Technologies remains part of the 'Hitters' basket as the stock has continued recent gains following positive market response to the government's supportive stance on electronics and smartphone manufacturing in India. Hyundai Motor has recorded modest gains as expectations around margin resilience continue to improve, with the brokerage expecting the company's market share to stabilise and improve during the second half of FY27. Macquarie said the stock has extended recent gains as the market responded positively to the government's supportive stance on electronics and smartphone manufacturing.
Macquarie has added Phoenix Mills Ltd. to its 'Rising Stars' category after recent weakness in its share price. The brokerage said the company continued to deliver healthy growth in mall rentals, but shares declined on delayed mall commissioning timelines and weaker residential sales that resulted in an earnings miss. According to Macquarie, Phoenix Mills reported robust mall rental growth, but shares declined on delayed mall commissioning timelines, while weaker residential sales led to an earnings miss. Despite the recent underperformance, Macquarie believes Phoenix Mills merits inclusion in its Rising Stars basket, with the brokerage's latest note suggesting it continues to favour companies where operating performance remains intact, while also identifying businesses that could benefit as sentiment improves.
