1 week ago
Macquarie’s Five Indian Stock Picks Offer Up to 51% Upside
Macquarie, a brokerage, has chosen five Indian companies it believes could perform well over the next year.
It gave all five an ‘Outperform’ rating.
Petronet LNG is benefiting from strong use of its Dahej gas terminal.
Delhivery could gain as online shopping and logistics demand grow.
Amber Enterprises is expanding from air-conditioner manufacturing into electronics manufacturing.
Godrej Consumer Products is trying to improve its core businesses after a change in leadership.
Power Grid has won or advanced major transmission projects, making its order book much larger.
Macquarie also identified risks, including fuel and input costs, gas prices, and execution challenges.
The targets and returns are Macquarie’s estimates, not guaranteed investment results.
Macquarie retained an ‘Outperform’ rating on Petronet LNG, Delhivery, Amber Enterprises India, Godrej Consumer Products and Power Grid Corporation of India.
The brokerage’s 12-month total shareholder return estimates range from 18.1% for Petronet LNG to about 51% for Power Grid.
Petronet LNG’s Dahej terminal utilisation reached 86%, exceeding Macquarie’s 73% consensus reference despite Qatar LNG supply disruptions.
Macquarie expects Delhivery’s scale, ecommerce exposure and part-truck-load services to support operating leverage and margin expansion.
Power Grid’s Barmer-II HVDC and Jam Khambhaliya projects could add about Rs 33,500 crore to its works-in-hand and lift its order book to roughly Rs 2.1 lakh crore.
- Who
- Macquarie assessed Petronet LNG, Delhivery, Amber Enterprises India, Godrej Consumer Products and Power Grid Corporation of India.
- What
- The brokerage retained ‘Outperform’ ratings and issued 12-month target prices and total shareholder return estimates for all five stocks.
- Where
- The companies operate in India; Power Grid’s cited projects include locations in Barmer and Gujarat, while Petronet’s key terminal is at Dahej.
- When
- The outlook covers the next 12 months, with some estimates and projects tied to FY27 and later years.
- Why
- Macquarie cited stronger execution, demand growth, business expansion, operating leverage and Power Grid’s expanding transmission order book as potential catalysts.
Macquarie’s Bullish Case
Risks and Uncertainties
Business execution
Macquarie’s Bullish Case
Improved execution could drive stronger volumes, operating leverage, margin expansion and growth across the five companies.
Risks and Uncertainties
Amber had a revenue miss, Godrej Consumer Products faces a leadership transition, and several businesses still require consistent execution.
Growth catalysts
Macquarie’s Bullish Case
Ecommerce growth, electronics manufacturing, higher gas-terminal utilisation and Power Grid’s new projects could support future returns.
Risks and Uncertainties
Higher natural-gas prices, fuel costs, input inflation, weakness in electronics and right-of-way issues could limit performance or delay benefits.
Power Grid timing
Macquarie’s Bullish Case
The two transmission projects could add substantial works-in-hand and imply incremental annual capex of about Rs 7,500 crore.
Risks and Uncertainties
Macquarie expects the projects’ combined tariff revenue to be realised only from FY31, so the benefit is not immediate.
Key facts
- Brokerage view
- Macquarie rated all five stocks ‘Outperform’.
- Petronet LNG target
- Rs 320; estimated 12-month TSR of 18.1%.
- Delhivery target
- Rs 580; estimated 12-month TSR of 23.1%.
- Amber Enterprises target
- Rs 8,900; estimated 12-month TSR of 23.2%.
- Godrej Consumer Products target
- Rs 1,150; estimated 12-month TSR of 25.4%.
- Power Grid target
- Rs 400; estimated 12-month TSR of about 51%.
- Power Grid projects
- The Barmer-II HVDC and Jam Khambhaliya REZ projects could add about Rs 33,500 crore to approved works-in-hand.
Quotes
Macquarie
Brokerage providing research coverage and investment views on the five companies.
“We remain constructive on Power Grid and expect a sharp pick-up in Power Grid’s capex/capitalisation, as right-of-way issues see a structural decline.”
financialexpress.com
“Amber’s execution in consumer durables sets a blueprint for its forays into ESDM, which should drive sustained revenue growth and higher margins.”
financialexpress.com
Sources
Related news
Brokerages Flag Ten Indian Stocks With Up To 55% Upside
Macquarie rejigs India Super 6s, adds GE Vernova T&D
Macquarie names three stocks with up to 35% upside
Top Brokerages Bullish on 8 Stocks With Up to 42% Upside
Macquarie rates Trent, PB Fintech, Marico, Avalon, UNO Minda 'Outperform'
Stocks to Watch Thursday as Key Corporate Developments Drive Focus
Indian Rs 1 Trillion Market Cap Club Expands
Power Grid’s Order Pipeline Rises to ₹1.75 Lakh Crore
POWERGRID AGM Highlights Network Growth and Technology Plans
India’s External Borrowings Jump 74% in June on Concessions
