Archive · 28 Aug 2026
Macquarie names three stocks with up to 35% upside
Macquarie Research picked three companies it believes could perform well.
The companies are Bharat Electronics, GMR Airports and Cummins India.
Bharat Electronics makes defence and electronic equipment and has many pending orders.
GMR Airports is expanding Hyderabad Airport, but it must complete the project on time to earn returns.
Cummins India sells power-generation equipment and is seeing increased demand from data centres and other industries.
Macquarie also expects growth from services after engine warranties end and from exports.
The brokerage gave each company an ‘Outperform’ rating and set target prices for the next 12 months.
These targets are estimates, not guarantees, and the article warns that investors should consider market risks and seek professional advice.
Macquarie Research retained its ‘Outperform’ ratings on Bharat Electronics, GMR Airports and Cummins India.
Bharat Electronics has a Rs 72,300 crore order backlog and a Rs 55,000 crore FY27 order-flow forecast.
GMR Airports received approval for Rs 1,380 crore of Hyderabad Airport expansion capex targeting capacity of 8 crore passengers.
Cummins India is benefiting from demand in power generation, data centres, aftermarket services and exports.
Macquarie’s target prices imply recalculated upsides of about 35.04% for Bharat Electronics, 20.97% for GMR Airports and 19.39% for Cummins India.
- Who
- Macquarie Research and the three companies it rated: Bharat Electronics, GMR Airports and Cummins India.
- What
- Macquarie retained ‘Outperform’ ratings and target prices for all three stocks.
- When
- The assessment covers FY27 developments, with target prices set for a 12-month period.
- Where
- The companies operate in India; the airport-related expansion concerns Hyderabad Airport.
- Why
- Macquarie cited Bharat Electronics’ order prospects, GMR Airports’ planned expansion and Cummins India’s demand across power generation, data centres, aftermarket services and exports.
Macquarie’s bullish case
Risks and uncertainties
Bharat Electronics order growth
Macquarie’s bullish case
Macquarie expects stronger order inflows, forecasting Rs 55,000 crore of new orders for FY27, supported by the existing backlog and diversified defence products.
Risks and uncertainties
The brokerage noted that current FY27 orders are below the comparable period last year, while higher receivables, changes to the nomination-based awarding framework and import exposure could affect performance.
Hyderabad Airport expansion
Macquarie’s bullish case
Approval for Rs 1,380 crore of expansion capex could support capacity growth and future returns once new assets are commissioned.
Risks and uncertainties
The programme is heavily weighted toward FY30, and delays could defer returns, the next tariff reset and improvements in yields.
Cummins India demand
Macquarie’s bullish case
Demand from power generation, data centres, aftermarket services, price increases, localisation and exports supports a positive growth outlook.
Risks and uncertainties
Macquarie said cost-inflation pressures remain a challenge, despite the company’s strong demand visibility.
- Bharat Electronics target
- Rs 550, implying recalculated upside of about 35.04%.
- Bharat Electronics backlog
- Rs 72,300 crore at the end of the first quarter of FY27.
- GMR Airports target
- Rs 120, implying recalculated upside of about 20.97%.
- Hyderabad expansion capex
- Rs 1,380 crore approved for expansion at Hyderabad Airport.
- Hyderabad capacity target
- Planned capacity of 8 crore passengers.
- Cummins India target
- Rs 6,150, implying recalculated upside of about 19.39%.
- FY27 Bharat Electronics orders
- Rs 6,200 crore secured so far, compared with Rs 11,200 crore in the same period last year.