Maruti | Ultratech | Wipro: Here’s what global brokerages have to say about Maruti, UltraTech and Wipro

New Delhi: March quarter earnings of Indian bluechip companies are keeping global brokerages busy. CLSA has reiterated ‘outperform’ rating on IT major Wipro with a target price of Rs 580 per share, citing its reasonable valuations and execution of steady margins under pressure.

However, the brokerage has cut the EPS estimates for FY23 and FY24 by 10 per cent and 9 per cent, respectively, over muted visibility on long term growth. Though, it believes that Wipro holds the promise of a structural turnaround.

Wipro reported a consolidated net profit for the quarter ended March 2022 at Rs 3,087.3 crore, up 3.87 per cent from Rs 2,972.3 crore posted in the same quarter last year. Revenue from operations during the said quarter was at Rs 20,860 crore, up by 28.4 per cent.

On the other hand, Credit Suisse has remained positive on cement major UltraTech with an outperform rating and a target price of Rs 7,500. Positive on the housing and investment cycle, the brokerage sees valuations in line with the historical averages. It said coal prices pullback could help the company sustain higher profitability.

UltraTech Cement reported a consolidated net profit for the quarter ended March at Rs 2,620.43 crore, up 47.61 per cent from Rs 1,775.23 crore in the same quarter last year. The company said its revenue from operations came in at Rs 15,767.28 crore, jumping 9.45 per cent.

BofA Securities, too, is bullish on Maruti Suzuki India. The brokerage has given it a ‘buy’ rating with a target of Rs 8,750 as an appreciative reaction to the recent product action.

The brokerage said that risk reward for Maruti is favourable at the current levels and has revised the EPS estimates for FY 23 and FY24 up by 6 per cent and 1 per cent, respectively. However, there are raw material concerns in the near term, said BofA Securities.

Maruti Suzuki on Friday said its profit after tax (PAT) grew 57.7 per cent year-on-year (YoY) to Rs 1,838.90 crore in the March quarter from Rs 1,166.10 crore in the corresponding quarter last year. Net sales for the quarter rose 11.1 per cent YoY to Rs 25,514 crore from Rs 22,958.60 crore in the year-ago quarter.

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