Stocks to watch: Macquarie identifies 6 potential doublers over next 3 years

Global brokerage Macquarie has unveiled its latest India Strategy report, spotlighting IRCTC and AB Capital among six stocks it believes have the potential to deliver 2x returns over the next three years. These stocks, dubbed as the “Rising Stars”, are expected to benefit from strong structural tailwinds, shifting consumer trends, and a favorable domestic macroeconomic environment.

IRCTC: Target price: Rs 900

Leading the list is IRCTC, for which Macquarie has set a 12-month target price of Rs 900, with an expectation of further long-term upside.

Uno Minda: Target price: Rs 1,157

Uno Minda is another top pick in this category, with a target price of Rs 1,157. Macquarie is bullish on the company’s diversified revenue mix and its wide-ranging auto components portfolio, which positions it well to ride the momentum in the automotive sector.

Aditya Birla Capital (AB Capital): Target price: Rs 260

AB Capital is considered one of Macquarie’s strongest ideas in the pack. The brokerage expects the stock to double in value over the next three years, with a 12-month target of Rs 260.

Devyani International: Target price: Rs 215

Devyani International, a key player in the quick-service restaurant space, is expected to benefit from rising discretionary incomes and a consumption rebound. Macquarie has a target price of Rs 230 on the stock.

Delhivery: Target price: Rs 380

Delhivery, with a target of Rs 380, is expected to capitalize on the revival in logistics demand and its focus on scale and efficiency.

Lemon Tree Hotels: Target price: Rs 210

Lastly, Lemon Tree Hotels, with a target of Rs 160, is seen as a beneficiary of the ongoing tourism recovery and higher occupancy rates across its properties.

Alongside these high-growth plays, Macquarie has reiterated confidence in six “Star” stocks as core holdings over a 12–24 month horizon.

Here are Macquarie’s long-term core holdings: 6 star stocks

These include TCS, with a target price of Rs 5,620, HDFC Bank, with a target of Rs 2,300 and Sun Pharmaceutical with a target price of Rs 2,100. This is followed by stocks like Mahindra & Mahindra (target: Rs 3,643), Trent (Rs 7,000), and Power Finance Corporation (Rs 660). Notably, Macquarie has initiated coverage on Trent, believing that it is well-positioned to emerge as a leading fashion retailer in India and across Asia.

For investors with a shorter investment horizon, Macquarie has also highlighted six tactical ideas with 6-month upside potential.

6 tactical opportunities: Short-term buys

Reliance Industries leads the group with a target of Rs 1,500, followed by NTPC with Rs 475, and Wipro with Rs 320.

Tata Motors is rated “Outperform” with a target of Rs 826. The brokerage notes confidence in Jaguar Land Rover’s net cash balance position by March 2025 as a key near-term driver.

Meanwhile, Bharat Electronics (BEL), with a target price of Rs 350, and Shriram Finance, with a target price of Rs 800, round out the tactical picks, both expected to deliver double-digit returns in the short term.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)