Tuesday's top brokerage calls: UltraTech Cement, Tech Mahindra and Maruti Suzuki

SUMMARY

Goldman Sachs has a 'buy' call on UltraTech Cement while Tech Mahindra remains Jefferies' preferred pick in the sector. Here are the top brokerage calls:

By CNBCTV18.comJan 18, 2022 8:38:26 AM IST (Published)

Goldman Sachs on UltraTech Cement | The company remains Goldman Sachs' top pick in the sector due to its capacity expansion plans, scale, pricing premium and rising green power share.

Jefferies on UltraTech Cement | The brokerage noted that management has indicated that costs are likely to remain elevated in Q4 and has cut FY22-24 EBITDA estimates by 7-9 percent to reflect cost pressure.

Nomura on Tech Mahindra | The new acquisition will bolster the insurance portfolio significantly, said Nomura. Besides, the value of acquisition is attractive, the brokerage added.

Jefferies on Tech Mahindra | The acquisition would add $90 million to its revenues and should be EPS accretive, Jefferies said. Tech Mahindra remains Jefferies' preferred pick.

CLSA on Maruti Suzuki | Increase of airbags will take cost of vehicles higher by Rs 16,000 and Maruti Suzuki would be most impacted by increase in airbags, CLSA pointed out. 70 percent of the automaker's domestic volume is from hatchbacks and entry-level sedans, the brokerage added.