Brokers' call on cement companies, Suzlon & IT sector

CIL move to help cement companies: Deutsche Bank

Coal India’s 80-85% rollback of the recently announced price hike will help cement manufactures, says Deutsche Bank.

With cement makers having already effected a price rise of 2-3% from mid-January, this rollback in coal price, as per the brokerage, is likely to result in a 5-10% rise in FY13 earnings of large cap cement companies.

ACC, with 70-75% dependence on domestic coal, is the key beneficiary, followed by Ambuja and UltraTech.

Citi retains ‘buy’ on Suzlon

Citi has retained ‘buy’ rating on Suzlon with a price target of Rs 47, up 70% from the current price. The brokerage believes Q3 FY12 results should be weak given the depreciation of the rupee and higher interest rates.

However, to a large extent, the 1333 MW order won by Suzlon and REpower together makes Suzlon’s revival story credible. Suzlon Wind has won 187 MW orders in the US in Q3 FY12, which implies that US customers are reposing their faith in Suzlon.

IT growth estimates safe: Credit Suisse

Credit Suisse says IT sector revenue growth assumptions for FY13 seem safe. They expect 11-14% dollar revenue growth and volumes for Tier-I IT companies.

As per their recent poll, spending intention of US corporates shows a significant upward trend, and IT spending outlook was the strongest among all areas.

Though the spending intention of European firms are dull, it expects a 25% YoY growth for the nine months to Dec 2011.