Brokerage views on Tech Mahindra, Sesa Goa, United Spirits, PFC

Read on to know what brokerages have to say about select stocks that are likely to be in action today:

Tech Mahindra Ltd: CLSA maintains 'underperform' rating on the counter with a target price of Rs 915. According to the brokerage firm, the scale of Tech Mahindra-Satyam post-merger has raised expectations of big revenue and cost synergies propelling the combined entity into the big league of IT companies and driving a valuation re-rating.

However, we believe that these hopes are elevated and any potential for valuation re-rating needs to be seen in context of: the high 46 per cent dependence on the troubled telecom vertical, overhead reduction seen over the last two years which limits further cost take-outs.

Sesa Goa Ltd: BofA-ML maintains ‘underperform’ rating on the stock with a target price of Rs 162. BofA-ML has cut iron ore price forecast for FY13 to US$121/t (-10%) and FY14e US$110/t (-14%) due to recent destocking in China and modest global steel production outlook.

This leads to 6.6-9.7 per cent EPS cut for Sesa Goa’s standalone estimates. Other factors which may weigh on the stock include, Goa mining ban resolution which may take longer, iron ore, Al & power assets should continue to face structural challenges and cash fungibility remains an issue

Credit Suisse on Cement sector (ACC, Ambuja, UltraTech and India Cements)

The research firm upgrades ACC to ‘neutral’ from ‘underperform’ and has also raised its target price from Rs 1375 earlier to Rs 1462. Credit Suisse maintains ‘neutral’ rating on the stock and has raised its target price from Rs 139 earlier to Rs 194 earlier.

The research firm maintains ‘underperform’ rating on UltraTech Cements Ltd and has raised target price from Rs 1212 earlier to Rs 1559 and maintain ‘outperform’ rating on India Cements with a target price of Rs 117.

United Spirits Ltd: Morgan Stanley maintains ‘equal weight’ rating on the counter and has raised its target price from Rs 554 earlier to Rs 1000.

Power Finance Corporation: Barclays downgrades the stock to ‘underweight’ from ‘equal weight’ with a target price of Rs 155.

OnMobile Global Ltd: Citi maintains ‘buy’ on the counter and has raised its target price from Rs 61 earlier to Rs 74.