Market Outlook Market Outlook: Dealer's Diary

Market Outlook
July 18, 2012
Dealers Diary
The Indian markets are expected to open flat tracking SGX Nifty and major Asian
indices which have started on a flattish note.
US stock markets closed in the green, following relatively upbeat economic data
and better than expected financial results. US Industrial production rose by 0.4%
slightly beating estimates for the month of June along with National association of
home builders (NAHB) showing an improvement in homebuilder confidence with
index coming in at 35 against expectations of 30. Financial results of well known
companies such as Goldman Sachs, Coca Cola and Mattel came in better than
expected. Meanwhile, Ben Bernanke reiterated that the central bank is prepared to
take further action if the economy continues to struggle.
Indian markets ended on a lackluster note on Tuesday, with benchmark indexes
Sensex and the Nifty closing on a flat note after Reserve Bank of India governor
D Subbarao said India's wholesale and consumer inflation numbers are way above
the central bank's comfort level. Looking ahead, Bernanke's second day of
testimony is likely to attract some attention on Wednesday along with the Fed's
Beige Book report and a Commerce Department report on housing starts.
Domestic Indices
BSE Sensex
The trend deciding level for the day is 17,139/5,204 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 17,203 17,300/5,226 5,259 levels. However, if NIFTY trades below
17,139/5,204 levels for the first half-an-hour of trade then it may correct up to
17,041 16,977/5,171 5,149 levels.
0.0
(Pts)
(Close)
2.0 17,105
Nifty
(0.1)
(4.4)
5,193
MID CAP
(0.8)
(50.6)
6,158
SMALL CAP
(0.9)
(57.9)
6,638
BSE HC
0.7
49.6
7,046
BSE PSU
(0.3)
(19.2)
7,277
BANKEX
(0.1)
(10.7) 12,135
AUTO
(1.3) (118.5)
METAL
(0.2)
(16.2) 10,414
OIL & GAS
(0.4)
(31.3)
8,003
BSE IT
(0.5)
(26.0)
5,209
(Pts)
(Close)
Global Indices
Dow Jones
NASDAQ
Chg (%)
0.6
9,126
78.3 12,806
0.5
13.1
2,910
(0.6)
(33.3)
5,629
Nikkei
0.4
30.9
8,755
Hang Seng
1.8
Straits Times
0.5
16.1
3,015
Shanghai Com
0.6
13.2
2,161
Chg (%)
(Pts)
(Close)
(0.3)
(0.1)
$39.2
FTSE
Markets Today
Chg (%)
Indian ADRs
334.0 19,455
Indices
S2
S1
PIVOT
R1
R2
INFY
SENSEX
16,977
17,041
17,139
17,203
17,300
WIT
0.6
0.0
$8.2
NIFTY
5,149
5,171
5,204
5,226
5,259
IBN
(0.1)
(0.0)
$33.8
0.4
0.1
$34.2
HDB
News Analysis
Reliance Industries needs immediate approval for fresh capex at KG D6 block

Cadila Healthcare: Update - Moraiya Plant
MPL achieves commercial operation for Phase 1 of Simhapuri power plant
1QFY2013 Result Reviews - Axis Bank
1QFY2013 Result Previews Bajaj Auto, Infotech Enterprises
Advances / Declines
BSE
NSE
Advances
1,044
429
Declines
1,763
1,050
117
75
Unchanged
Refer detailed news analysis on the following page
Volumes (` cr)
Net Inflows (July 16, 2012)

` cr
Purch
Sales
Net
MTD
YTD
FII
158
29
130
7,866
49,659
MFs
270
259
11
(1,844)
(8,194)
FII Derivatives (July 17, 2012)

` cr
Purch
Sales
Net
Open Interest
Index Futures
1,272
1,142
129
15,377
Stock Futures
1,538
1,950
(411)
26,382
Gainers / Losers
Gainers
Company
Losers
Price (`)
chg (%)
Cadila Healthcare
837
4.7
Mcleod Russel
319
2.7
Wipro
362
1.9
Glenmark Pharma
388
1.9
Marico
184
1.7
www.angelbroking.com
Company
Price (`)
chg (%)
195
(8.4)
JP Infra
53
(5.8)
Shree Renuka Sug.
32
(5.3)
Adani Power
46
(4.9)
GMR Infrastrtuctre
23
(4.2)
Adani Enterprises
BSE
1,750
NSE
8,427
Market Outlook
July 18, 2012
Reliance Industries needs immediate approval for fresh capex at

KG D6 block
Reliance Industries (RIL) has expressed concerns that output from KG D6 block
could stop after FY2015 in case the government does not approve additional
investments in the block to raise gas output. RIL has requested government to
approve additional capex of US$225mn. RIL also stated that it could produce
0.6tcf of gas from D1-D6 block if the capex was approved immediately. Further,
RIL stated that it could increase the output by additional 1tcf in case it gets
approval to spent a capex of US$543mn. Approximately 12% of our target price
value for RIL comes is ascribed to KG D6 block. Until further update, we maintain
our Neutral rating on the stock.
Cadila Healthcare: Update - Moraiya Plant

Cadila Healthcare has received a letter from USFDA, conveying that the facilities at
Moraiya are acceptable. Earlier, the company had received a warning letter for
this facility which the Cadila will be using for making injectable drugs at that area
of the facility. The warning was based on inspections that the FDA carried out at a
portion of the company's facility at Moraiya in Gujarat state. However, we are
maintaining our estimates on the stock and a buy with a price target of `953.
MPL achieves commercial operation for Phase 1 of Simhapuri

power plant
Madhucon Projects Limited (MPL) has achieved commercial operation for Phase 1
(2*150=300MW) of its Simhapuri power plant. Simhapuri Energy Power Ltd, a
100% subsidiary of Madhucon Infra is developing 1,920MW coal fired thermal
power plant in three phases (Phase 1: 2*150=300MW, Phase 2:
(2*150=300MW, Phase 3: 2*660=1,320MW) with a total project cost of
~`11,270cr. The first unit of Phase 1 had achieved commercial operation on 4th
May 2012 and second unit has achieved the same on 15th July 2012. 70% of
capacity is supplied to PTC as per agreement and the balance 30% is sold as
merchant power. The construction of Phase 2 is expected to be completed by
December 2012, taking the operational capacity to 600MW. We have valued MPL
on an SOTP basis to arrive at a target price of `56 and maintain our Buy rating on
the stock.
Result Reviews
Axis Bank - (CMP: `1,023 / TP: `1,485 / Upside: 45.1%)
For 1QFY2013, Axis Bank reported 22.4% yoy growth in its net profit to `1,154cr,
which was in-line with our estimates. Key highlights of the results were sequential
compression in NIMs by 18bp, sequential increase in Gross and Net NPA levels on
lower recoveries and upgrades and subdued fee income growth on a high base of
last year.
The banks loan book grew by a healthy 29.8% yoy, while deposits grew by 21.3%
yoy. The growth in loan book was primarily on account of 50.2% yoy increase in
Market Outlook
July 18, 2012
retail lending, with both home and auto loans growing significantly (on a low
base). Savings deposits growth was muted at 2.1% qoq, while current account
deposits declined sequentailly by 14.1%, resulting in almost 250bps qoq decline in
CASA ratio. Sequentially lower CASA ratio resulted in 18bp decline in the banks
reported NIMs. Fee income growth remained subdued during the quarter, with a
growth of 8% yoy, however fee income segments viz. agri and retail witnessed
healthy growth. The slippages for the bank for 1QFY2013 came in at 1.1%, lowest
in last three quarters (`456cr compared to `514cr in 4QFY2012 and `296cr in
1QFY2013), however sharp sequential decline in recoveries and upgrades (`62cr
compared to `593cr in 4QFY2012 and quarterly average of `183cr since
1QFY2011), led to higher sequential gross NPA levels (higher by 15.8% qoq on an
absolute basis) for the bank. Despite significant increase in loan loss provisioning,
banks PCR declined to 79.0% from 81.0% in 4QFY2012, leading to 28.0%
sequential increase in net NPA levels to `605cr. The bank restructured loans worth
~`628cr taking its outstanding restructured book to `3,827cr.
Axis Bank is trading at 1.4x FY2014E ABV 57% discount to HDFC Bank vs. an
average discount of 34.7% since July 2006. We remain positive on the bank,
owing to its attractive CASA franchise, multiple sources of sustainable fee income,
strong growth outlook and A-list management. We maintain our Buy
recommendation on the stock with a target price of `1,485.
Y/E
March
Op. Inc
NIM
PAT
EPS
ABV
(`)
ROA
ROE
P/E
P/ABV
(` cr)
(%)
(` cr)
(%)
(x)
(x)
(x)
(x)
FY2013E
15,961
3.1
5,010
117.3 631.8
1.6
20.1
8.7
1.6
FY2014E
19,583
3.2
6,110
143.1 742.4
1.6
20.8
7.2
1.4
Result Previews
Bajaj Auto (CMP: `1,447 / TP: `1,725 / Upside: 19%)
Bajaj Auto is scheduled to announce its 1QFY2013 results today. We expect the
companys top line to post a modest top-line growth of 4% yoy to `4,790cr led
~6% yoy increase in net average realization. Total volumes declined by 1.3% yoy
as export volumes registered a de growth of ~3% yoy. Exports volumes during the
quarter were impacted on account of substantial fall in exports to Sri Lanka after
the local government increased the import duty on two-wheelers and threewheelers. Domestic sales posted 2% yoy growth led by slowdown in demand in the
motorcycle segment and increase in competitive activity. On the operating front,
EBITDA margin is expected to expand by a marginal 30bp yoy to 19.4% led by
stable raw-material prices. Thus, the bottom line is expected to grow by 7% yoy to
`760cr. At the CMP of `1,447, the stock is trading at 11.7x FY2014E earnings.
Currently, we have a Buy rating on the stock with a target price of `1,725.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
21,665
18.6
3,232
111.7
43.8
13.0
5.1
8.1
1.5
FY2014E
24,334
18.4
3,565
123.2
38.5
11.7
4.1
6.9
1.2
Market Outlook
July 18, 2012
Infotech Enterprises (CMP: `179 / TP: - / Upside: -)

Infotech Enterprises is slated to announce its 1QFY2013 results today. We expect
the company to post revenues of US$85mn, up 2.3% qoq majorly led by volume
growth. In rupee terms, revenues are expected to come in at `454cr, up 8.9% qoq.
EBITDA margin is expected to decline by 40bp qoq to 19.4%, impacted negatively
by wage hikes given during the quarter which is expected to overshadow gains
derived from INR depreciation. PAT is expected to come in at `58cr. We maintain
Neutral view on the stock.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
1,847
17.5
190
17.1
13.8
10.5
1.5
4.1
0.7
FY2014E
2,008
17.1
207
18.7
13.2
9.6
1.3
3.5
0.6
Quarterly Bloomberg Brokers Consensus Estimate

Bajaj Auto Ltd - (18/07/2012)
Particulars (` cr)
Net sales
1Q FY13E
1Q FY12
y-o-y (%)
4Q FY12
q-o-q (%)
4,870
4,587
4,516
EBITDA
941
911
921
EBITDA margin (%)
19.3
19.9
Net profit
730
711
772
(5)
1Q FY13E
1Q FY12
y-o-y (%)
4Q FY12
q-o-q (%)
6,404
5,638
14
5,963
EBITDA
935
906
1,030
(9)
EBITDA margin (%)
14.6
16.1
Net profit
625
558
20.4
Hero Moto Corp Ltd - (19/07/2012)

Particulars (` cr)
Net sales
17.3
13
604
Kotak Mahindra Bank Ltd - Consolidated (19/07/2012)

Particulars (` cr)
Net profit
1Q FY13E
1Q FY12
y-o-y (%)
4Q FY12
q-o-q (%)
412
416
(1)
529
(22)
Dr. Reddy Laboratories Ltd - Consolidated (19/07/2012)

Particulars (` cr)
1Q FY13E
1Q FY12
y-o-y (%)
4Q FY12
q-o-q (%)
Net sales
2,585
1,978
31
2,658
(3)
Net profit
378
263
44
343
10
Asian Paints Ltd - Consolidated (20/07/2012)

Particulars (` cr)
1Q FY13E
1Q FY12
y-o-y (%)
4Q FY12
q-o-q (%)
2,735
2,260
21
2,539
EBITDA
465
392
19
383
21
EBITDA margin (%)
17.0
17.3
Net profit
312
272
Net sales
15.1
15
265
18
Market Outlook
July 18, 2012
Crompton Greaves Ltd - Consolidated (20/07/2012)

Particulars (` cr)
1Q FY13E
1Q FY12
y-o-y (%)
4Q FY12
q-o-q (%)
2,729
2,438
12
3,077
(11)
EBITDA
205
182
13
213
(4)
EBITDA margin (%)
7.5
7.5
Net profit
98
80
23
96
1Q FY13E
1Q FY12
y-o-y (%)
4Q FY12
q-o-q (%)
Net sales
2,949
2,821
3,094
(5)
EBITDA
1,494
1,592
(6)
1,659
(10)
50.7
56.4
1,383
1,495
Net sales
6.9
Hindustan Zinc Ltd - (20/07/2012)

Particulars (` cr)
EBITDA margin (%)

Net profit
53.6
(7)
1,413
(2)
Reliance Industries Ltd - (20/07/2012)

Particulars (` cr)
Net sales
EBITDA
EBITDA margin (%)
Net profit
1Q FY13E
1Q FY12
y-o-y (%)
4Q FY12
q-o-q (%)
87,763
81,018
85,182
7,072
9,926
(29)
6,563
8.1
12.3
4,377
5,661
7.7
(23)
4,236
United Phosphorous Ltd - Consolidated (20/07/2012)

Particulars (` cr)
1Q FY13E
1Q FY12
y-o-y (%)
4Q FY12
q-o-q (%)
2,169
1,822
19
2,119
EBITDA
398
345
15
387
EBITDA margin (%)
18.3
18.9
Net profit
178
184
(3)
202
(12)
1Q FY13E
1Q FY12
y-o-y (%)
4Q FY12
q-o-q (%)
Net sales
4,995
4,365
14
5,337
(6)
EBITDA
1,248
1,227
1,345
(7)
EBITDA margin (%)
25.0
28.1
Net profit
743
683
Net sales
18.2
Ultratech Cement Ltd - (20/07/2012)

Particulars (` cr)
25.2
9
867
(14)
Zee Entertainment Ltd - Consolidated (20/07/2012)

Particulars (` cr)
Net sales
1Q FY13E
1Q FY12
y-o-y (%)
4Q FY12
q-o-q (%)
815
684
19
869
(6)
24
160
21
EBITDA
194
156
EBITDA margin (%)
23.7
22.8
Net profit
152
127
18.4
20
160
(5)
Market Outlook
July 18, 2012
Economic and Political News
India won't meet infra investment target: Planning commission

Indias growth potential may have diminished: Subbarao
12th plan power capacity target cut to 88,000MW
Corporate News
RIL buys back shares worth Rs 2,512 cr in biggest buyback

IGL eyes stake in Central UP Gas to expand beyond Delhi
SKS Microfinance raises Rs230 crore via QIP
Adani group eyes coal assets in Mozambique for $400 mn
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
Market Outlook
July 18, 2012
Result Calendar
Date
Company
July 18, 2012
Bajaj Auto, CRISIL, Infotech Enterprises, Automotive Axle
July 19, 2012
Hero Motocorp, Kotak Mah. Bank, Dr Reddy's, D B Corp, Persistent, Tata Sponge
Reliance Industries, Hind. Zinc, UltraTech Cement, Asian Paints, Zee Entertainment, Crompton Greaves, United
Phosphorus, Indiabulls Fin., HT Media
Bank of Maharashtra
July 20, 2012

July 21, 2012
July 22, 2012
July 23, 2012
July 24, 2012
July 25, 2012
July 26, 2012
July 27, 2012
July 28, 2012
Larsen & Toubro, HUL, Idea Cellular, Dabur India, Colgate, Indian Bank, Tata Global, Rallis, Greenply
Wipro, Jindal Steel, Lupin, Canara Bank, Sesa Goa, Shriram Trans., LIC Housing Fin., Ashok Leyland, Page Industries,
Ineos ABS
GAIL, Power Grid Corpn, HCL Tech, Yes Bank, Aventis, Vijaya Bank, Madras Cements, GIPCL, NIIT, MRF
ITC, BHEL, Ambuja Cements, ACC, JSW Steel , Gujarat Gas, Tata Comm, Thermax, Bajaj Electrical, J K Lakshmi
Cements
ICICI Bank, Punjab Natl.Bank, Grasim Inds, Rural Elec.Corp., Union Bank, United Spirits, Central Bank, CESC, TVS
Motor, Dena Bank, Hind. Const.
Maruti, Indraprasth Gas, Vesuvius India, Force Motors
July 29, 2012

July 30, 2012
Oriental Bank, Indoco Remedies, Subros
July 31, 2012
Titan Inds., Ipca labs, Hexaware
Source: Bloomberg, Angel Research
Global economic events release calendar

Date
July 18, 2012
July 19, 2012
Country
Event Description
Unit
Period
Bloomberg Data
Last Reported
Estimated
US
Housing Starts
Thousands
Jun
708.00
745.00
US
Building permits
Thousands
Jun
784.00
765.00
UK
Jobless claims change
% Change
Jun
8.10
5.00
US
Initial Jobless claims
Thousands
Jul 14
350.00
365.00
US
Millions
Jun
4.55
4.62
Value
Jul A
(19.80)
--
Value
Jul A
49.90
--
July 23, 2012
Euro Zone
July 24, 2012
Germany
Existing home sales

Euro-Zone Consumer
Confidence
PMI Services
Germany
PMI Manufacturing
Value
Jul A
45.00
--
UK
GDP (YoY)
% Change
2Q A
(0.20)
--
US
New home sales
Thousands
Jun
369.00
370.00
July 27, 2012
US
GDP Qoq (Annualised)
2Q A
1.90
1.50
July 31, 2012
US
Consumer Confidence
Jul
62.00
--
Germany
Unemployment change (000's)
% Change
S.A./
1985=100
Thousands
Jul
7.00
--
India
RBI Repo rate
Jul 31
8.00
--
India
RBI Cash Reserve ratio
Jul 31
4.75
--
India
RBI Reverse Repo rate
Jul 31
7.00
--
July 25, 2012
Market Strategy
July 18, 2012
Macro watch
Exhibit 1: Quarterly GDP trends
(%)
8.0
6.7
5.9
6.0
5.3
4.3
3.4
2.7
2.5
2.4
1.0
Source: CSO, Angel Research
(6.0)
10.0
9.9
Jan-12
Dec-11
Nov-11
Mfg. PMI
60.0
9.8
(3.2)
(5.0)
Exhibit 4: Manufacturing and services PMI
(%)
9.4
(0.9)
Source: MOSPI, Angel Research
Exhibit 3: Monthly WPI inflation trends

12.0
Oct-11
Sep-11
Aug-11
(4.0)
Jul-11
Jun-11
4QFY12
3QFY12
2QFY12
1QFY12
4QFY11
3QFY11
2QFY11
1QFY11
4QFY10
3QFY10
2QFY10
(2.0)
1QFY10
3.0
4QFY09
4.0
Services PMI
58.0
9.5
7.7
8.0
6.9
7.4
7.7
7.5
7.6
7.3
56.0
Source: MOSPI, Angel Research
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Source: RBI, Angel Research
Jul-12
Jun-12
May-12
CRR
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Reverse Repo rate
Nov-11
Repo rate
Jul-11
May-12
Apr-12
4.00
Mar-12
0.0
Feb-12
5.00
Jan-12
15.0
Dec-11
6.00
Nov-11
30.0
Oct-11
7.00
Sep-11
45.0
Aug-11
8.00
Jul-11
60.0
Jun-11
(%)
9.00
Oct-11
Imports yoy growth
Sep-11
Exports yoy growth
Exhibit 6: Key policy rates
75.0
Jul-11
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Exhibit 5: Exports and imports growth trends

(%)
Jun-11
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
48.0
Nov-11
0.0
Oct-11
50.0
Sep-11
2.0
Aug-11
52.0
Jul-11
4.0
Aug-11
54.0
6.0
(15.0)
3.7
4.0
2.0
5.0
10.0
6.0
6.0
6.1
May-12
7.4
Aug-11
7.0
9.5
10.0
8.0
Jun-12
7.5
8.0
8.2
7.6
Apr-12
8.5
9.0
12.0
9.2
May-12
9.4
Mar-12
9.8
Feb-12
(%)
10.0
Exhibit 2: IIP trends
Market Outlook
July 18, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Agri / Agri Chemical

Rallis
Neutral
125
2,423
1,432
1,647
14.7
14.7
7.0
8.0
17.8
15.6
3.8
3.2
22.8
22.3
1.7
1.5
United Phosphorus
Buy
123
183
5,672
8,191
8,764
16.5
16.5
17.1
18.3
7.2
6.7
1.2
1.0
17.5
16.2
0.8
0.7
Amara Raja Batteries
Accumulate
307
345
2,618
2,715
3,041
15.3
15.3
29.2
32.8
10.5
9.3
2.4
2.0
26.0
23.3
0.9
0.8
Apollo Tyres
Buy
81
100
4,098
13,699
15,184
10.5
10.2
12.1
13.3
6.7
6.1
1.2
1.0
19.7
18.4
0.5
0.4
Ashok Leyland
Buy
24
33
6,386
14,798
16,687
9.6
9.6
2.4
3.0
9.9
8.1
2.0
1.7
14.8
16.5
0.5
0.4
Automotive Axle
Accumulate
433
457
654
1,211
1,387
12.1
11.7
50.3
57.1
8.6
7.6
2.2
1.8
27.8
25.7
0.6
0.5
Bajaj Auto
Buy
1,447
1,725
41,876
21,665
24,334
18.6
18.4
111.7
123.2
13.0
11.8
5.1
4.1
43.8
38.5
1.5
1.3
Bharat Forge
Buy
297
372
6,921
7,173
7,998
16.3
16.5
22.3
26.6
13.3
11.2
2.6
2.2
21.0
21.0
1.0
0.9
Bosch India
Accumulate
8,689
9,206
27,281
9,106
10,255
19.4
19.3
410.2
460.3
21.2
18.9
4.7
3.9
22.1
20.4
2.6
2.3
CEAT
Buy
100
164
343
5,067
5,631
8.0
7.6
39.4
41.0
2.5
2.4
0.4
0.4
18.8
16.5
0.3
0.3
Exide Industries
Accumulate
132
149
11,250
5,899
6,771
16.0
17.0
7.4
9.1
18.0
14.5
3.2
2.7
19.0
20.2
1.6
1.3
FAG Bearings
Neutral
1,498
2,489
1,492
1,703
18.8
18.5
115.3
129.8
13.0
11.5
2.8
2.3
23.5
21.6
1.4
1.1
Hero Motocorp
Buy
2,099
2,473
41,911
25,970
29,772
15.0
15.5
139.7
154.5
15.0
13.6
7.1
5.4
54.7
44.9
1.3
1.0
JK Tyre
Buy
93
135
382
7,950
8,904
5.5
6.0
25.1
38.6
3.7
2.4
0.4
0.4
12.1
16.4
0.3
0.3
Auto & Auto Ancillary
Mahindra and Mahindra Buy

Maruti
Accumulate
Motherson Sumi
Buy
Subros
Accumulate
Tata Motors
Buy
TVS Motor
Accumulate
709
824
43,513
35,881
40,746
10.0
10.0
47.5
53.2
14.9
13.3
3.0
2.6
21.3
20.5
1.0
0.8
1,197
1,364
34,571
39,959
46,670
6.0
7.0
71.4
90.9
16.8
13.2
2.0
1.8
12.8
14.4
0.7
0.6
166
216
6,494
23,342
26,366
7.8
8.2
13.3
18.0
12.5
9.2
3.0
2.4
26.2
28.4
0.5
0.4
34
36
202
1,244
1,402
8.4
8.3
4.5
5.1
7.5
6.6
0.7
0.7
9.9
11.0
0.4
0.4
226
305
60,205 191,303 211,004
13.0
12.9
40.7
43.8
5.5
5.2
1.9
1.6
36.0
33.1
0.4
0.4
39
42
1,862
7,442
8,198
6.2
6.1
4.8
5.2
8.2
7.5
1.4
1.3
18.2
17.9
0.2
0.2
Capital Goods
ABB*
Sell
761
498
16,129
8,760
10,023
7.6
7.5
18.2
20.7
41.8
36.7
5.6
5.0
14.4
14.6
1.8
1.6
BGR Energy
Neutral
293
2,115
4,195
4,837
11.0
11.0
30.1
32.4
9.7
9.1
1.7
1.5
18.4
17.6
1.0
1.0
BHEL
Neutral
226
55,377
46,344
46,916
18.3
18.6
23.5
24.1
9.6
9.4
1.9
1.7
21.3
18.9
1.1
1.0
Blue Star
Neutral
190
1,706
3,047
3,328
5.4
6.9
9.6
16.2
19.7
11.7
3.9
3.1
20.7
29.7
0.7
0.5
Crompton Greaves
Accumulate
129
142
8,304
12,451
14,265
7.9
8.3
8.0
9.5
16.2
13.7
2.2
1.9
13.9
14.9
0.7
0.6
Jyoti Structures
Buy
41
67
335
2,622
2,801
10.6
11.0
10.9
13.4
3.7
3.0
0.5
0.4
13.7
14.9
0.3
0.3
KEC International
Buy
56
73
1,427
6,686
7,200
8.5
8.8
10.6
12.2
5.3
4.6
1.0
0.8
25.9
24.0
0.4
0.4
LMW
Buy
1,613
1,992
1,817
2,369
2,727
11.7
11.7
143.4
166.0
11.3
9.7
1.9
1.7
17.4
18.4
0.3
0.2
Thermax
Neutral
491
5,845
5,514
5,559
9.8
9.6
29.7
28.4
16.5
17.3
3.1
2.8
20.2
16.9
0.9
0.9
Market Outlook
July 18, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Cement
ACC
Neutral
1,258
23,615
11,096
12,607
21.0
21.7
76.1
82.9
16.5
15.2
3.1
2.8
19.3
19.3
1.9
1.6
Ambuja Cements
Neutral
169
25,979
10,205
11,659
24.6
24.2
10.8
12.0
15.6
14.0
3.3
2.9
19.7
19.8
2.2
1.8
India Cements
Neutral
81
2,500
4,364
4,791
18.9
19.1
9.2
11.4
8.8
7.2
0.7
0.7
8.0
9.5
0.5
0.4
J K Lakshmi Cements
Neutral
80
979
1,938
2,246
19.1
20.1
15.2
16.8
5.3
4.8
0.7
0.6
13.8
14.0
0.6
1.0
Madras Cements
Neutral
156
3,712
3,444
3,786
25.5
24.9
14.6
17.1
10.7
9.2
1.6
1.4
15.6
16.0
1.7
1.4
Shree Cements
Neutral
2,925
10,190
5,519
6,293
24.5
23.7
156.6
225.3
18.7
13.0
4.6
4.0
22.3
26.0
1.6
1.2
UltraTech Cement
Neutral
1,565
42,883
20,099
22,642
21.7
22.9
89.6
104.7
17.5
14.9
2.9
2.5
17.7
17.9
2.0
1.9
215
273
1,132
2,014
2,293
22.4
22.4
22.6
26.7
9.5
8.1
1.0
0.9
11.4
11.9
2.4
2.7
Construction
Ashoka Buildcon
Buy
Consolidated Co
Neutral
18
339
2,489
2,755
7.0
7.8
3.0
4.0
6.2
4.6
0.5
0.5
8.7
10.8
0.3
0.3
Hind. Const.
Neutral
19
1,150
4,239
4,522
11.1
11.8
(1.8)
(0.8)
(10.6)
(24.3)
1.1
1.2
(9.5)
(4.7)
1.3
1.2
IRB Infra
Buy
132
166
4,381
3,821
4,582
42.3
40.2
15.0
16.9
8.8
7.8
1.3
1.2
16.1
15.8
2.8
2.5
ITNL
Buy
182
265
3,543
6,619
7,925
23.8
23.3
22.9
27.8
8.0
6.6
1.2
1.0
15.5
16.4
2.2
2.1
IVRCL Infra
Buy
47
61
1,248
5,510
6,722
8.8
9.0
2.5
4.6
18.5
10.2
0.6
0.6
3.4
5.8
0.7
0.7
Jaiprakash Asso.
Accumulate
77
88
16,363
15,259
17,502
25.7
24.7
4.2
5.0
18.1
15.4
1.5
1.4
8.5
9.3
2.4
2.1
Larsen & Toubro
Accumulate
1,378
1,553
84,435
59,559
69,089
12.1
11.5
78.4
85.2
17.6
16.2
2.9
2.6
16.1
15.3
1.6
1.4
Madhucon Proj
Buy
34
56
254
2,206
2,502
10.7
10.7
4.6
4.7
7.4
7.4
0.4
0.4
5.2
5.0
0.7
0.7
Nagarjuna Const.
Neutral
40
1,037
5,453
6,169
8.1
8.5
1.6
1.9
24.6
20.9
0.4
0.4
1.8
2.1
0.6
0.7
Patel Engg.
Neutral
94
658
3,609
3,836
13.1
13.1
14.0
14.6
6.7
6.5
0.4
0.4
6.3
6.1
1.0
1.1
Punj Lloyd
Neutral
54
1,787
11,592
12,993
8.4
8.4
1.8
3.2
29.9
16.8
0.6
0.6
2.0
3.4
0.6
0.6
Sadbhav Engg.
Buy
136
182
2,045
2,789
3,147
10.6
10.7
8.4
10.4
16.1
13.0
2.2
1.9
15.0
15.6
0.9
0.8
Simplex Infra
Buy
217
265
1,075
6,732
7,837
8.1
8.4
23.5
29.4
9.2
7.4
0.9
0.8
9.6
11.0
0.5
0.4
Allahabad Bank
Accumulate
141
153
7,073
7,467
8,685
3.2
3.3
37.5
41.5
3.8
3.4
0.6
0.6
18.1
17.4
Andhra Bank
Neutral
112
6,292
5,225
6,024
3.3
3.3
22.7
25.4
5.0
4.4
0.8
0.7
16.0
15.8
Axis Bank
Buy
1,023
1,485
42,394
15,961
19,583
3.1
3.2
117.3
143.1
8.7
7.2
1.6
1.4
20.1
20.8
Bank of Baroda
Buy
729
921
28,554
16,157
19,475
2.7
2.7
123.7
148.3
5.9
4.9
1.0
0.8
17.3
18.1
Bank of India
Buy
330
388
18,915
13,657
15,902
2.5
2.6
59.5
70.6
5.5
4.7
0.9
0.8
16.2
16.9
Bank of Maharashtra
Accumulate
Canara Bank
Buy
Central Bank
Reduce
Financials
48
52
2,818
3,506
3,925
3.2
3.2
10.2
11.9
4.7
4.0
0.7
0.6
15.3
15.8
414
492
18,356
12,296
14,445
2.4
2.5
81.5
92.2
5.1
4.5
0.8
0.7
16.4
16.3
78
72
5,775
7,001
8,211
2.5
2.6
14.0
20.6
5.6
3.8
0.8
0.7
11.0
14.5
Market Outlook
July 18, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Financials
Corporation Bank
Accumulate
421
465
6,229
5,294
6,070
2.3
2.3
106.3
110.1
4.0
3.8
0.7
0.6
17.7
16.2
Dena Bank
Accumulate
100
106
3,509
3,170
3,577
2.9
2.9
22.8
25.3
4.4
4.0
0.7
0.6
17.2
16.6
Federal Bank
Neutral
430
7,350
2,736
3,165
3.4
3.4
49.3
57.4
8.7
7.5
1.2
1.0
13.9
14.5
HDFC
Neutral
682
101,507
7,340
8,805
3.5
3.5
31.5
37.8
21.6
18.0
4.3
3.9
34.8
32.2
HDFC Bank
Neutral
583
137,350
21,936
27,454
4.4
4.4
28.7
36.0
20.3
16.2
3.9
3.3
20.7
22.0
ICICI Bank
Buy
923
1,169
106,107
22,368
26,857
2.8
2.9
68.2
80.4
13.5
11.5
1.6
1.5
14.2
15.4
IDBI Bank
Buy
Indian Bank
Neutral
IOB
93
113
11,838
8,152
9,907
1.9
2.1
19.7
24.1
4.7
3.8
0.6
0.6
13.6
15.0
188
8,099
6,417
7,292
3.5
3.5
40.2
43.1
4.7
4.4
0.8
0.7
17.9
16.9
Accumulate
82
91
6,571
7,578
8,662
2.6
2.7
17.2
22.5
4.8
3.7
0.6
0.5
12.1
14.3
J & K Bank
Accumulate
922
979
4,469
2,525
2,858
3.5
3.5
175.8
183.1
5.2
5.0
0.9
0.8
19.3
17.5
LIC Housing Finance
Accumulate
264
286
13,316
2,108
2,607
2.6
2.6
24.5
30.6
10.8
8.6
2.0
1.7
20.1
21.4
Oriental Bank
Accumulate
256
269
7,457
6,497
7,533
2.8
2.8
53.4
63.9
4.8
4.0
0.7
0.6
13.3
14.3
Punjab Natl.Bank
Buy
857
1,050
29,078
20,142
23,929
3.2
3.3
153.3
174.3
5.6
4.9
1.0
0.9
18.3
18.0
South Ind.Bank
Neutral
24
2,764
1,514
1,717
2.8
2.7
4.0
4.2
6.1
5.8
1.2
1.0
20.5
18.5
St Bk of India
Accumulate
2,199
2,443
147,553
67,783
78,208
3.7
3.6
226.0
264.2
9.7
8.3
1.6
1.3
17.7
18.1
Syndicate Bank
Buy
102
118
6,152
7,176
8,299
3.1
3.1
25.1
29.1
4.1
3.5
0.7
0.6
17.6
17.8
UCO Bank
Reduce
77
71
5,128
5,642
6,438
2.5
2.5
16.4
17.6
4.7
4.4
0.9
0.8
16.2
15.4
Union Bank
Buy
202
256
11,143
10,623
12,404
3.0
3.0
42.5
49.6
4.8
4.1
0.8
0.7
16.9
17.2
United Bank
Buy
60
78
2,168
3,599
4,212
2.8
3.0
18.2
22.3
3.3
2.7
0.5
0.4
15.0
16.2
Vijaya Bank
Reduce
57
52
2,802
2,695
3,097
2.2
2.3
9.6
12.0
5.9
4.7
0.8
0.7
12.0
13.6
Yes Bank
Buy
350
454
12,388
3,250
4,261
2.8
2.9
34.1
42.8
10.3
8.2
2.2
1.8
23.2
23.9
3,658
35,086
11,423
13,309
16.3
16.3
125.3
148.4
29.2
24.7
9.9
7.8
38.0
35.4
3.0
2.5
514
633
6,143
5,835
6,824
6.3
6.7
20.7
27.5
24.8
18.7
9.7
7.2
42.7
44.3
1.0
0.9
1,146
15,591
3,007
3,417
21.1
22.1
38.2
43.8
30.0
26.2
35.7
28.1
130.2
119.9
5.1
4.5
FMCG
Asian Paints
Neutral
Britannia
Buy
Colgate
Neutral
Dabur India
Neutral
115
20,068
5,878
6,799
16.8
17.0
4.2
4.9
27.8
23.4
10.1
8.2
39.3
42.0
3.4
3.0
GlaxoSmith Con*
Neutral
2,661
11,191
3,124
3,663
17.1
17.6
103.0
123.3
25.9
21.6
8.0
6.4
34.0
32.9
3.3
2.7
Godrej Consumer
Neutral
569
19,361
5,973
7,000
18.4
18.6
22.8
27.2
24.9
21.0
6.8
5.5
31.3
38.4
3.4
2.9
HUL
Neutral
445
96,265
25,350
29,309
14.3
14.4
14.1
16.4
31.5
27.2
23.6
18.4
82.7
76.2
3.6
3.1
ITC
Neutral
255
199,758
29,588
34,063
35.4
35.8
9.3
10.9
27.4
23.5
8.8
7.2
35.2
33.8
6.5
5.6
Market Outlook
July 18, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
( )
Price ( )
( cr )
FY13E
OPM(%)
EPS ( )
FY14E
FY13E
FY14E
FY13E
PER(x)
P/BV(x)
FY14E
FY13E
FY14E
FY13E
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FMCG
Marico
Neutral
184
11,866
4,667
5,427
12.8
12.9
6.6
8.1
27.7
22.6
7.4
5.8
30.0
28.8
2.6
2.2
Nestle*
Neutral
4,497
43,359
8,731
10,539
21.0
21.4
114.4
143.0
39.3
31.4
23.7
16.3
71.1
61.4
5.0
4.1
Tata Global
Buy
116
136
7,195
7,011
7,711
9.7
10.0
6.3
7.5
18.6
15.6
1.8
1.7
9.5
10.9
0.9
0.9
HCL Tech
Buy
480
562
33,274
24,029
26,633
18.3
17.2
39.6
43.2
12.1
11.1
2.8
2.3
22.9
21.0
1.4
1.2
Hexaware
Buy
111
132
3,297
1,921
2,178
20.6
20.0
10.4
11.4
10.7
9.7
2.6
2.2
24.7
23.4
1.4
1.2
Infosys
Buy
2,171
2,530
124,657
39,151
41,743
31.6
31.9
161.9
174.5
13.4
12.4
3.2
2.8
23.8
22.1
2.6
2.3
Infotech Enterprises
Neutral
180
2,000
1,825
2,008
17.5
17.1
16.9
18.7
10.6
9.6
1.5
1.3
13.7
13.3
0.7
0.6
KPIT Cummins
Neutral
115
2,044
2,145
2,316
16.0
14.8
9.9
11.3
11.5
10.2
2.3
1.8
20.8
19.1
0.9
0.8
Mahindra Satyam
Accumulate
82
87
9,632
7,492
8,038
17.0
16.3
8.1
8.3
10.1
9.8
1.4
1.2
14.1
12.6
0.9
0.8
Mindtree
Accumulate
648
708
2,637
2,341
2,513
18.6
17.1
66.5
70.8
9.8
9.2
2.2
1.7
22.3
19.3
1.0
0.8
Mphasis
Neutral
383
8,036
5,704
6,009
18.6
17.7
36.0
37.1
10.6
10.3
1.5
1.3
14.0
12.6
0.9
0.8
NIIT
Buy
41
52
679
1,162
1,304
14.8
15.1
7.1
8.8
5.8
4.7
1.0
0.9
16.7
18.4
0.4
0.3
Persistent
Neutral
TCS
Accumulate
Tech Mahindra
Wipro
IT
390
1,558
1,187
1,274
26.7
26.0
34.5
42.6
11.3
9.1
1.6
1.4
14.4
15.4
1.0
0.9
1,187
1,304
232,244
61,046
67,507
29.3
29.1
67.3
72.4
17.6
16.4
5.6
4.6
31.9
28.3
3.6
3.2
Neutral
706
9,002
6,282
6,477
17.5
16.5
82.9
85.0
8.5
8.3
1.8
1.5
21.6
18.4
1.4
1.2
Buy
362
451
89,153
44,597
49,033
20.3
20.5
26.6
30.1
13.6
12.1
2.7
2.3
19.5
18.9
1.7
1.4
D B Corp
Buy
194
269
3,553
1,638
1,851
25.8
26.6
13.5
16.1
14.4
12.0
3.2
2.7
23.9
24.2
2.1
1.8
HT Media
Buy
96
148
2,256
2,224
2,509
16.6
17.2
8.6
10.8
11.2
8.9
1.4
1.2
12.9
14.3
0.6
0.5
Jagran Prakashan
Buy
84
125
2,653
1,521
1,698
22.6
23.1
6.2
6.4
13.7
13.0
3.3
2.9
20.7
23.9
2.0
1.8
PVR
Neutral
171
444
625
732
16.5
15.7
11.9
13.3
14.4
12.9
1.4
1.3
11.9
12.0
1.1
0.9
Sun TV Network
Neutral
299
11,777
2,002
2,296
77.1
76.7
18.9
22.1
15.8
13.6
4.1
3.5
27.7
28.3
5.3
4.5
Bhushan Steel
Reduce
473
429
10,046
11,408
13,773
31.0
30.0
53.7
60.8
8.8
7.8
1.3
1.1
15.3
14.9
2.6
2.2
Coal India
Neutral
354
223,757
68,841
74,509
25.3
25.3
24.1
26.1
14.7
13.6
4.0
3.3
30.4
26.8
2.4
2.0
Electrosteel Castings
Buy
19
22
659
1,984
2,074
11.2
12.6
2.0
2.7
9.4
7.1
0.4
0.1
4.2
5.5
0.5
0.5
Hind. Zinc
Buy
119
141
50,218
13,050
14,585
51.4
52.1
14.5
16.5
8.2
7.2
1.6
1.3
20.8
19.9
2.1
1.4
Hindalco
Neutral
120
22,927
83,212
91,057
9.0
9.9
13.7
18.1
8.8
6.6
0.7
0.6
7.9
9.6
0.5
0.5
JSW Steel
Neutral
672
15,000
39,592
44,910
18.0
17.7
74.7
88.9
9.0
7.6
0.9
0.8
10.7
11.6
0.7
0.7
MOIL
Neutral
282
4,745
1,007
1,091
56.6
56.9
29.4
31.9
9.6
8.9
1.7
1.5
19.0
18.2
2.5
2.1
Monnet Ispat
Buy
381
447
2,452
3,115
3,748
22.1
25.1
59.1
66.8
6.5
5.7
0.9
0.8
15.6
15.3
1.5
1.1
Media
Metals & Mining
Market Outlook
July 18, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
Sales ( cr )
FY13E
OPM(%)
FY14E
FY13E
FY14E
EPS ( )
FY13E
PER(x)
P/BV(x)
RoE(%)
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
EV/Sales(x)
FY14E
FY13E
FY14E
Metals & Mining

Nalco
Neutral
56
14,549
8,474
9,024
12.6
16.2
2.6
3.6
22.1
15.8
1.2
1.2
5.6
7.5
1.3
1.2
NMDC
Neutral
187
74,001
11,959
13,062
78.2
78.6
19.1
20.9
9.8
8.9
2.4
2.0
27.1
24.4
4.1
3.5
SAIL
Neutral
92
37,939
50,914
60,785
14.6
15.1
9.4
10.5
9.8
8.7
0.9
0.8
9.2
9.6
1.2
1.1
Sesa Goa
Accumulate
186
195
16,126
9,067
9,316
35.7
35.5
44.5
44.3
4.2
4.2
0.9
0.8
23.5
19.5
0.4
0.1
Sterlite Inds
Buy
101
123
33,909
45,294
48,059
25.7
25.3
16.5
18.0
6.1
5.6
0.7
0.6
12.0
11.2
0.4
0.3
Tata Steel
Buy
406
499
39,451 143,088 148,011
10.9
12.1
53.9
66.0
7.5
6.2
0.9
0.8
12.2
13.4
0.6
0.6
Cairn India
Buy
317
372
60,422
15,513
16,074
74.0
69.7
51.1
48.6
6.2
6.5
1.0
0.9
18.3
14.8
2.8
2.0
GAIL
Neutral
356
45,132
50,472
55,502
15.3
15.6
35.4
37.0
10.0
9.6
1.8
1.6
19.0
17.2
0.1
ONGC
Accumulate
284
321
243,061 156,331 159,043
37.7
36.3
31.3
32.6
9.1
8.7
1.6
1.4
18.7
17.3
1.2
1.1
Reliance Industries
Neutral
719
235,489 316,404 319,119
11.2
12.0
63.5
68.7
11.3
10.5
1.1
1.0
11.7
11.4
0.7
0.7
Oil & Gas
Pharmaceuticals
Alembic Pharma
Buy
57
91
1,075
1,624
1,855
14.2
15.6
6.6
9.1
8.6
6.3
2.1
1.6
27.5
29.2
0.9
0.7
Aurobindo Pharma
Buy
110
156
3,194
5,243
5,767
14.6
14.6
11.8
12.6
9.3
8.7
0.9
0.4
11.4
10.9
0.8
0.6
Aventis*
Neutral
1,482
1,682
15.5
15.5
95.0
104.0
18.6
17.0
Cadila Healthcare
Accumulate
837
953
17,130
6,196
7,443
18.5
19.5
37.6
47.7
22.3
17.5
5.0
4.0
26.8
27.5
2.8
2.2
Cipla
Accumulate
332
379
26,621
7,687
8,804
21.4
21.4
16.5
18.9
20.1
17.5
3.1
2.7
16.7
16.8
3.4
2.9
Dr Reddy's
Neutral
1,704
28,915
10,696
11,662
20.7
21.0
83.7
92.9
20.4
18.3
4.2
3.6
22.4
21.0
2.8
2.6
Dishman Pharma
Buy
61
92
495
1,280
1,536
17.8
17.8
9.2
11.3
6.7
5.4
0.5
0.5
7.7
8.5
1.0
0.9
GSK Pharma*
Neutral
2,052
17,379
2,651
2,993
31.7
31.2
76.0
82.4
27.0
24.9
7.8
6.8
30.8
29.0
5.6
4.8
Indoco Remedies
Buy
60
82
553
685
837
15.2
15.2
7.4
8.9
8.1
6.7
1.2
1.0
15.9
16.3
1.0
0.8
Ipca labs
Buy
377
435
4,753
2,850
3,474
20.3
20.3
31.9
36.3
11.8
10.4
3.6
2.9
26.2
26.8
1.8
1.5
Lupin
Accumulate
570
647
25,492
8,426
10,082
19.7
20.0
27.4
32.4
20.8
17.6
5.0
4.0
27.0
25.2
2.9
2.4
Orchid Chemicals
Buy
120
178
843
2,117
2,434
17.7
17.7
16.7
22.2
7.2
5.4
0.7
0.6
9.5
11.5
1.1
0.9
Ranbaxy*
Neutral
494
20,857
12,046
11,980
18.0
15.8
35.7
29.8
13.8
16.6
5.2
4.2
43.1
28.1
1.8
1.7
Sun Pharma
Neutral
628
64,678
9,272
11,080
38.6
38.0
22.7
22.6
27.7
27.8
4.6
4.1
17.9
15.6
5.6
4.4
CESC
Accumulate
299
342
3,729
5,084
5,512
24.2
23.8
45.2
48.5
6.6
6.2
0.7
0.6
11.2
10.9
1.2
1.2
GIPCL
Buy
65
77
977
1,557
1,573
28.8
28.5
10.4
10.9
6.2
5.9
0.6
0.6
10.4
10.2
1.1
0.9
NTPC
Neutral
158
130,484
74,766
86,549
23.1
23.4
12.4
14.1
12.7
11.2
1.6
1.5
13.0
13.5
2.5
2.3
52
78
1,535
657
875
52.0
56.1
8.4
12.7
6.2
4.1
0.4
0.4
6.3
8.9
3.6
2.7
202
34,368
9,878
12,033
44.7
46.1
9.6
13.4
21.1
15.1
1.3
1.3
6.4
8.7
6.0
4.9
Power
Real Estate
Anant Raj
Buy
DLF
Neutral
Market Outlook
July 18, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
P/BV(x)
RoE(%)
FY13E
FY14E
FY13E
FY14E
FY13E
EV/Sales(x)
FY14E
FY13E
FY14E
Real Estate
HDIL
Buy
85
115
3,572
2,441
3,344
55.1
48.2
22.7
26.6
3.8
3.2
0.3
0.3
8.8
9.4
3.3
2.5
MLIFE
Accumulate
328
376
1,339
814
897
26.9
27.0
31.3
33.9
10.5
9.7
1.1
1.0
10.2
10.1
2.0
1.8
Bharti Airtel
Neutral
324
122,888
80,076
86,613
32.8
33.5
15.5
19.8
21.0
16.3
2.2
2.0
10.5
11.9
2.2
1.9
Idea Cellular
Neutral
85
28,050
23,209
26,063
26.2
27.5
3.3
4.9
25.8
17.2
2.0
1.8
7.7
10.3
1.7
1.4
Rcom
Neutral
65
13,365
22,125
23,734
31.9
32.0
4.5
5.9
14.5
11.1
0.4
0.4
2.5
3.1
2.1
1.7
Telecom
zOthers
Abbott India
Accumulate
1,491
1,628
3,168
1,661
1,918
9.7
12.0
60.7
90.4
24.6
16.5
5.0
4.1
22.0
27.3
1.7
1.4
Bajaj Electricals
Buy
197
246
1,959
3,569
4,172
8.6
9.2
17.3
22.3
11.4
8.8
2.4
2.1
22.9
25.3
0.5
0.5
Cera Sanitaryware
Accumulate
290
327
367
405
477
15.8
17.2
31.0
41.0
9.4
7.1
2.1
1.6
24.3
25.8
1.1
0.9
Cravatex
Buy
675
785
174
302
364
5.7
6.0
49.0
71.0
13.8
9.5
4.1
2.9
29.8
30.7
0.7
0.6
CRISIL
Neutral
1,039
7,288
982
1,136
34.3
34.3
34.3
40.0
30.3
26.0
13.7
11.0
50.9
46.9
7.0
5.9
Finolex Cables
Buy
42
61
642
2,334
2,687
8.8
9.3
7.6
10.2
5.5
4.1
0.7
0.6
13.7
16.1
0.2
0.1
Force Motors
Buy
472
615
615
2,346
2,753
5.8
6.7
44.0
68.0
10.7
6.9
0.5
0.5
4.8
7.0
0.2
0.2
Goodyear India
Accumulate
339
374
783
1,511
1,692
7.9
9.0
31.5
41.3
10.8
8.2
2.1
1.8
21.2
23.5
0.3
0.2
Graphite India
Buy
88
124
1,716
2,158
2,406
18.1
18.9
12.4
14.0
7.1
6.3
0.9
0.9
14.0
14.3
0.9
0.8
Greenply Industries
Buy
195
309
471
1,925
2,235
10.6
10.9
29.6
44.1
6.6
4.4
1.1
0.9
16.8
21.0
0.5
0.4
HEG
Buy
203
242
810
1,746
1,946
16.5
17.7
22.5
32.9
9.0
6.2
0.9
0.8
10.4
14.2
1.1
1.0
Hitachi
Buy
130
160
298
857
968
6.9
8.4
10.2
16.0
12.8
8.1
1.6
1.3
12.9
17.8
0.4
0.4
Honeywell Automation
Accumulate
2,654
2,864
2,346
1,761
2,024
6.7
8.2
95.0
127.0
27.9
20.9
3.3
2.8
14.1
16.3
1.2
1.1
INEOS ABS India
Accumulate
710
804
1,248
900
1,020
9.0
11.1
33.0
45.0
21.5
15.8
2.9
2.5
14.3
17.0
1.2
1.0
ITD Cementation
Neutral
231
266
1,535
1,842
11.1
11.1
27.3
38.3
8.5
6.0
0.7
0.6
7.9
10.2
0.6
0.6
Jyothy Laboratories
Buy
126
268
2,032
1,315
1,568
8.6
11.1
6.4
10.9
19.8
11.6
1.7
1.6
8.4
13.9
1.9
1.5
MCX
Buy
1,095
1,598
5,586
610
702
65.5
67.0
67.9
79.9
16.1
13.7
4.7
4.0
29.1
28.9
6.2
4.9
MRF
Buy
10,065
13,106
4,269
12,390
14,400
10.4
11.3 1,334.6 1,638.2
7.5
6.1
1.5
1.2
16.5
17.4
0.5
0.5
Page Industries
Neutral
2,886
3,219
887
1,108
18.3
18.6
95.0
120.9
30.4
23.9
15.9
12.9
57.4
59.5
3.7
2.9
Relaxo Footwears
Buy
524
618
629
1,019
1,220
11.2
12.2
44.2
61.8
11.9
8.5
2.8
2.1
26.8
28.6
0.8
0.7
Sintex Industries
Buy
64
79
1,736
4,751
5,189
16.3
16.6
13.6
15.8
4.7
4.0
0.6
0.5
12.9
13.2
0.7
0.6
Siyaram Silk Mills
Buy
291
392
273
1,042
1,173
12.4
12.5
66.3
78.5
4.4
3.7
0.9
0.7
21.1
20.8
0.5
0.4
S. Kumars Nationwide
Buy
33
45
978
7,279
8,290
21.0
21.0
15.0
17.6
2.2
1.9
0.3
0.2
13.7
13.9
0.7
0.7
SpiceJet
Buy
31
40
1,506
5,647
6,513
3.5
6.5
1.9
4.9
16.0
6.4
37.6
5.4
0.4
0.3
Market Outlook
July 18, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
zOthers
TAJ GVK
Buy
68
108
426
300
319
35.8
36.2
7.9
9.1
8.6
7.5
1.1
1.0
13.9
14.4
1.7
1.5
Tata Sponge Iron
Buy
338
420
521
700
806
18.2
18.2
55.6
65.1
6.1
5.2
0.8
0.7
14.2
14.8
0.3
0.2
TVS Srichakra
Buy
328
462
251
1,612
1,827
9.5
9.8
72.3
92.5
4.5
3.5
1.3
1.0
33.1
32.1
0.4
0.3
United Spirits
Reduce
788
730
10,307
10,289
11,421
13.5
14.3
31.0
42.9
25.4
18.4
2.0
1.8
8.1
10.3
1.7
1.5
Vesuvius India
Accumulate
381
413
774
628
716
16.4
16.5
29.8
34.4
12.8
11.1
2.2
1.9
18.8
18.6
1.1
0.9
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on July 17, 2012
Market Outlook
July 18, 2012

Market Outlook Market Outlook: Dealer's Diary

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Market Outlook

July 18, 2012

OIL & GAS

Reliance Industries needs immediate approval for fresh capex at KG D6 block

Refer detailed news analysis on the following page

Net Inflows (July 16, 2012)

FII Derivatives (July 17, 2012)

Shree Renuka Sug.

Reliance Industries needs immediate approval for fresh capex at

Cadila Healthcare: Update - Moraiya Plant

MPL achieves commercial operation for Phase 1 of Simhapuri

Infotech Enterprises (CMP: `179 / TP: - / Upside: -)

Quarterly Bloomberg Brokers Consensus Estimate

EBITDA margin (%)

EBITDA margin (%)

Hero Moto Corp Ltd - (19/07/2012)

Kotak Mahindra Bank Ltd - Consolidated (19/07/2012)

Dr. Reddy Laboratories Ltd - Consolidated (19/07/2012)

Asian Paints Ltd - Consolidated (20/07/2012)

EBITDA margin (%)

Crompton Greaves Ltd - Consolidated (20/07/2012)

EBITDA margin (%)

Hindustan Zinc Ltd - (20/07/2012)

EBITDA margin (%)

Reliance Industries Ltd - (20/07/2012)

United Phosphorous Ltd - Consolidated (20/07/2012)

EBITDA margin (%)

EBITDA margin (%)

Ultratech Cement Ltd - (20/07/2012)

Zee Entertainment Ltd - Consolidated (20/07/2012)

EBITDA margin (%)

Economic and Political News

India won't meet infra investment target: Planning commission

RIL buys back shares worth Rs 2,512 cr in biggest buyback

July 18, 2012

Bajaj Auto, CRISIL, Infotech Enterprises, Automotive Axle

July 19, 2012

July 20, 2012

July 29, 2012

Oriental Bank, Indoco Remedies, Subros

July 31, 2012

Titan Inds., Ipca labs, Hexaware

Source: Bloomberg, Angel Research

Global economic events release calendar

July 18, 2012

July 19, 2012

Jobless claims change

Initial Jobless claims

July 23, 2012

July 24, 2012

Existing home sales

New home sales

July 27, 2012

GDP Qoq (Annualised)

July 31, 2012

Unemployment change (000's)

RBI Repo rate

RBI Cash Reserve ratio

RBI Reverse Repo rate

July 25, 2012

Source: Bloomberg, Angel Research

Source: CSO, Angel Research