Thursday's top brokerage calls: Vedanta, UPL and more

SUMMARY

Among brokerages, CLSA has maintained 'Buy' on UPL and expects the company to see 28% earnings CAGR in FY20-23 while it prefers tractor & 2-wheeler stocks in the automobile sector. Here are the top brokerage calls for the day:

By CNBC-TV18Sept 3, 2020 9:28:32 AM IST (Published)

Citi on Vedanta | Citi says the company's delisting will likely happen at closer to/higher than its fair value of Rs 150 per share.

CLSA on Vedanta | CLSA has maintained 'Outperform' rating on Vedanta despite book value for delisting reducing to Rs 89.38 per share. It says delisting price could also be outside of this range of Rs 89-128 per share.

CLSA on UPL | CLSA has maintained 'Buy' on UPL and expects the company to see 28% earnings CAGR in FY20-23.

CLSA on Auto | The brokerage's FY21 forecasts imply potential upside risk for tractors. It prefers tractor & 2-wheeler stocks.

Macquarie on Auto | Tractor sales are up 70-80% YoY in August and are set for a positive Q2, says Macquarie. It has Bajaj Auto, Escorts & M&M as top picks.

Jefferies on Auto | The brokerage believes recovery sets the stage for a turnaround in financial performance for auto companies in Q2.

Macquarie on Banks | The brokerage says lower credit-to-GDP ratio provides an opportunity to improve credit penetration & private banks are well placed to capture this growth opportunity.

Macquarie on Pharma | Macquarie believes the cap on incentives availed by exporters will impact pharma companies. Analysis suggests a worst-case hit of 2-8% on FY21–23 EPS.

Jefferies on City Gas Companies | Jefferies has Gujarat Gas as top pick amongst city gas cos.

Macquarie on Agrochemicals | The brokerage sees a strong outlook from agrochemical demand.