Archive · 8 Sep 2026
Macquarie Names 12 Indian Stocks for Earnings and Returns
Macquarie studied many Indian companies to find stocks that may perform better in the future.
It chose 12 companies for different reasons.
Six companies already combine strong growth with good returns and cash generation.
These include GE Vernova T&D India, Dixon Technologies, Marico, Titan, Trent and Hitachi Energy.
Six other companies may improve because their profitability and return measures are currently recovering.
The report expects factors such as stronger demand, new capacity, better cost control and lower capital spending to help some companies.
Macquarie also warned that market-wide earnings growth does not mean every company is improving equally.
Its forecasts could be affected by commodity prices, geopolitical risks and business execution.
The report is an analysis, not a guarantee or personal investment advice.
Macquarie identified 12 Indian stocks whose growth, cash generation or return ratios could improve.
GE Vernova T&D India, Dixon Technologies, Marico, Titan, Trent and Hitachi Energy are classified as “Trinity leaders.”
Macquarie’s six growth-focused picks carry target prices implying approximately 10% to 30% upside from its reference prices.
Bharti Airtel, Divi’s Laboratories, Adani Green, CG Power, L&T Finance and Tata Communications are expected to improve return on equity.
The brokerage cautioned that earnings growth is uneven, with FY27 estimates cut particularly for small-cap companies.
- Who
- Macquarie identified 12 companies, including GE Vernova T&D India, Dixon Technologies, Marico, Titan, Trent, Hitachi Energy, Bharti Airtel, Divi’s Laboratories, Adani Green, CG Power, L&T Finance and Tata Communications.
- What
- The brokerage published a stock-selection report highlighting six “Trinity leaders” and six companies with potential return-on-equity improvement.
- When
- The report uses forecasts mainly covering FY26 to FY29 and a September 1 reference price for the stated target-price upside.
- Where
- The analysis covers the Indian equity market and the MSCI India universe.
- Why
- Macquarie believes broad earnings growth alone may not identify the strongest opportunities, so it focused on growth, profitability, cash generation and improving returns.
Opportunity case
Risk and caution case
Earnings outlook
Opportunity case
Macquarie expects selected companies to benefit from sustained demand, order backlogs, capacity additions, operating leverage and improving cash generation or returns.
Risk and caution case
The brokerage said earnings improvement has limited breadth, and FY27 aggregate estimates—especially for small-cap companies—have been reduced.
Industrial growth
Opportunity case
Government spending, private-sector capital expenditure, localisation, exports and new orders could support a multi-year industrial growth cycle.
Risk and caution case
Geopolitical risks and higher commodity prices could hurt execution and profitability; Macquarie sees downside to margin expectations for BHEL, Siemens and ABB.
Investment interpretation
Opportunity case
The 12-stock framework supports selective, bottom-up stock picking rather than relying only on broad market earnings forecasts.
Risk and caution case
Ratings, forecasts and target prices may change and may not materialise because of economic conditions, company performance, interest rates, regulations, commodity prices and other risks.
- Report
- Macquarie’s “The India Diviner: Earnings Monitor, Navigating Promise & Illusion”
- Stocks identified
- 12 companies
- Stock groups
- Six “Trinity leaders” and six return-on-equity improvement candidates
- Projected MSCI India EPS growth
- Approximately 16% rolling two-year compound annual growth
- Target-price upside
- Approximately 10% to 30% for the six growth-focused names
- June-quarter sales growth
- 10% for the MSCI India universe
- June-quarter profit growth
- 13% profit-after-tax growth after excluding volatile contributors