Market Outlook Market Outlook: Dealer's Diary

Market Outlook
August 8, 2012
Dealers Diary
Indian markets are expected to open in the green, tracing positive opening trades
in the SGX Nifty and the major Asian bourses. Most of the Asian bourses have
edged higher in the early trades as speculation that central banks will take steps to
spur growth and better than forecast U.S. corporate earnings have boosted the
outlook for the economy.
The US markets moved mostly higher during the trading session on Tuesday and
ended the day positively. The continued strength on Wall Street was partly due to
optimism that the ECB will unveil additional measures to address the ongoing debt
crisis following the release of disappointing economic data from the region. Data
from Europe showed that the Italian economy shrank in the second quarter,
marking the fourth consecutive quarter of contraction. A separate report showed a
steeper than expected drop in German factory orders in June. The European
markets largely closed in the positive territory on Tuesday, despite release of
disappointing economic data.
Meanwhile, the Indian markets rallied for a second straight day on hopes of reform
after finance minister unveiled a roadmap to revive economic growth. He promised
fine-tuning of policies and corrective measures on proposals such as the GAAR and
retrospective amendments, helping boost investor sentiment.
Domestic Indices
1.1
1.0
54.2
5,337
MID CAP
0.4
21.3
6,126
SMALL CAP
0.4
23.6
6,621
(0.1)
(7.0)
7,310
BSE PSU
0.6
42.6
7,133
BANKEX
1.2
143.5 12,142
AUTO
1.7
156.1
METAL
0.6
OIL & GAS
0.1
6.5
8,358
BSE IT
2.0
104.3
5,450
(Pts)
(Close)
Global Indices
51.1 13,169
NASDAQ
0.9
26.0
3,016
FTSE
0.6
32.5
5,841
Nikkei
0.9
77.0
8,803
0.4
73.8 20,073
S2
S1
PIVOT
R1
R2
SENSEX
17,330
17,466
17,554
17,690
17,777
NIFTY
5,254
5,296
5,323
5,364
5,391
HDB
` cr
Purch
Sales
Net
MTD
YTD
FII
1,736
1,167
570
1,549
54,830
441
347
95
51
(8,028)
FII Derivatives (August 7, 2012)

` cr
Purch
Sales
Net
Open Interest
Index Futures
2,195
1,518
677
15,169
Stock Futures
1,578
1,035
542
24,484
Gainers / Losers
Gainers
Losers
Price (`)
chg (%)
Bajaj Finserv
805
4.5
Tata Motors
239
4.4
Company
Price (`)
chg (%)
IRB Infra
116
(7.0)
Castrol India
602
(3.8)
212
(3.4)
33
(2.6)
319
(2.5)
Thermax
509
4.1
Indiabulls Fin
Bharat Forge
312
4.0
Shree Renuka Sug
Zee Entert
168
3.9
HPCL
www.angelbroking.com
(0.1)
(4.1)
3,068
0.1
2.7
2,158
Chg (%)
(Pts)
(Close)
INFY
1.8
0.7
$41.4
WIT
0.8
0.1
$8.0
IBN
1.5
0.5
$35.5
(1.9)
(0.7)
$35.2
Shanghai Com
Indian ADRs
Advances / Declines
BSE
NSE
Advances
1,503
784
Declines
1,316
642
125
86
Unchanged
Volumes (` cr)
Net Inflows (August 6, 2012)
Company
60.1 10,361
0.4
Indices
MFs
Chg (%)
9,329
Dow Jones
Straits Times
Refer detailed news analysis on the following page
188.8 17,602
BSE HC
Hang Seng
Spectrum auction may get pushed to November

RILs Management Committee approves commerciality of three gas finds
Coal India Board approves higher penalty for new FSAs
1QFY2013 Result Reviews- J&K Bank, MOIL, Aurobindo Pharma, Punj Lloyd
1QFY2013 Result Previews- M&M, ABB India
(Close)
Nifty
The trend deciding level for the day is 17,554 / 5,323 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 17,690 17,777 / 5,364 5,391 levels. However, if NIFTY trades below
17,554 / 5,323 levels for the first half-an-hour of trade then it may correct up to
17,466 17,330 / 5,296 5,254 levels.
(Pts)
BSE Sensex
Markets Today
News Analysis
Chg (%)
BSE
2,179
NSE
9,862
Market Outlook
August 8, 2012
Spectrum auction may get pushed to November

As per media reports, the telecom department (DoT) will ask the Supreme Court to
extend the deadline for completing the upcoming auction of airwaves by five
months to January 30, 2013. DoT will tell the apex court next week that the
electronic bidding for airwaves will begin on November 12, 2013 as it submits a
revised timeline. This is the second time the government will seek an extension of
the deadline for holding and completing auctions. The EGoM on telecom, at its
meeting yesterday, decided to approach the Supreme Court to seek an extension
of the deadline the court had set. The apex court had directed the Government to
complete the auction by August 31 and cancel licenses given out in 2010 by
September 7, 2012. According to the revised timeline prepared by the Department
of Telecom, the spectrum sale will start on November 12, 2012. The DoT will tell
the Supreme Court that the delay is because the auctioneer will need time to set up
the online system and finalize the auction guidelines. The extension seeking is on
the expected lines. We maintain Neutral rating on the overall telecom sector.
RILs Management Committee approves commerciality of three

gas finds
Media reports suggest that Reliance Industries Ltds (RIL) Management Committee
has given conditional acceptance to the budget for three years beginning FY2011
for KG-D6 block. Also, the Committee has conditionally approved commercial
feasibility for three finds in the block (D-29, D-30, and D-31). Media reports also
suggest that RIL has received approval to spend US$1bn to raise KG D8
production during FY2013. We await further approvals from the Oil Ministry to
have more clarity on this matter. Meanwhile, we maintain our Neutral view on the
stock.
Coal India Board approves higher penalty for new FSAs

Media reports suggest that Coal India Ltds (CIL) Board has approved higher
penalty rates for Fuel Supply Agreements (FSAs) to be signed with power producers
which have commissioned units after March 30, 2009. The penalty will now be
levied at 1.5% for a shortfall below 80% but above 65% (compared to earlier
penalty level of only 0.01%). For shortfall below 65%, the penalty will be in the
range of 5-40% depending on the quantum of shortfall. However, there is no
clarity on price pooling and quantum of imports. We do not foresee a material
impact on CILs financials on account of this marginal increase in penalty. Hence,
we maintain our Neutral view on the stock.
Market Outlook
August 8, 2012
Result Reviews
J&K Bank (CMP: `948 / TP: - / Upside: -)
J&K Bank registered a strong performance on the operating front for 1QFY2013.
The reported net profit grew by 35.0% yoy to `246cr. The growth in net interest
income remained healthy at 22.5% yoy to `536cr, while the operating profits grew
by a strong 31.2% yoy to `415cr. The banks asset quality remained stable
sequentially, with a marginal increase of 6bp in gross NPA ratio to 1.6% and 1bp
decline in the net NPA ratio to 0.14%. The banks PCR which is highest in the
industry, improved on a sequential basis by 33bp to 94.1%. At the current market
price, the stock is trading at a relatively expensive valuation of 0.8x FY2014E ABV.
We maintain our Neutral recommendation on the stock.
Y/E
Op. Inc
NIM
PAT
EPS
ABV
ROA
(` cr)
(%)
(` cr)
(`)
(%)
(x)
FY2013E
2,525
3.5
853
175.8
978.7
FY2014E
2,858
3.5
888
183.1
1,118.8
March
ROE P/E
(x)
P/ABV
(x)
(x)
1.3
19.3 5.3
1.0
1.2
17.5 5.1
0.8
MOIL Ltd (CMP: `267 / TP: `296 /Upside: 11%)

MOILs 1QFY2013 results were above our expectations. Net sales increased by
15.5% to `243cr (above our estimate of `199cr) mainly on account of higher
volumes in our view. However, EBITDA decreased by 19.3% yoy to `102cr and
EBITDA margin dipped by 1814bp yoy to 42.2% mainly on account of decline in
manganese ore prices in our view. Other income increased by 20.4% to `52cr
mainly on account of higher cash balance. Consequently, net profit decreased by
only 8.7% yoy to `99cr, above our expectation of `93cr. We maintain our
Accumulate rating on the stock with a target price of `296.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
884
50.2
399 23.7
15.6
11.2
1.7
5.3
2.7
FY2014E
958
50.5
424 25.2
15.1
10.6
1.5
4.6
2.3
Aurobindo Pharma (CMP: `115/ TP: `156/ Upside: 36%)

Aurobindo Pharmaceuticals, reported results below expectations. The company
posted sales of `1197.4cr, registering a y-o-y growth of 12.4% yoy, which is below
our expectation of `1,258cr. On the operating front, the gross margins came in at
45.9%, below our expectations of 46.8%. This, along with a rise in other
expenditure, lead to a significant drop in OPM which came in at 10.3% (15.2%).
Further, this resulted in the net profit coming in much lower than our expectations
at `22cr vs our expectations of `96cr. We maintain our Buy recommendation on
the stock with a price target of `156.
Market Outlook
August 8, 2012
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
5,243
14.6
342 11.8
11.4
9.8
1.0
7.2
1.0
FY2014E
5,767
14.6
367 12.6
10.9
9.1
0.9
6.2
0.9
Punj Lloyd (CMP: `54 / TP: - / Upside: -)

For 1QFY2013, Punj posted mixed set of numbers with decent performance on
revenue and EBITDAM front but loss at earnings level owing to high interest and
depreciation cost. The company posted 22.6% yoy top-line growth to `2,776cr.
The companys EBITDA margin for the quarter stood at 10.4% an improvement of
160bp and 200bp on yoy and qoq basis respectively. Interest came in at 183cr a
jump of 39% on yoy basis but fall of 2% on sequential basis. Depreciation stood at
`94cr an increase of 52%/34% on yoy/qoq basis. Despite posting good numbers
on the revenue and EBITDAM front Punj posted a loss of `13cr vs. a loss of `12cr
in 1QFY2012 on the earnings front owing to higher interest and depreciation cost.
We maintain our Neutral view on the stock.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
(` cr)
(%)
FY2013E
11,592
8.4
59
1.8
2.0
30.3
0.6
6.6
0.6
FY2014E
12,993
8.4
107
3.2
3.6
16.7
0.6
6.3
0.5
Result Previews
Mahindra and Mahindra (CMP: `696 / TP: `824 / Upside: 18%)
Mahindra and Mahindra (MM) will be announcing its 1QFY2013 results today. We
expect the companys top-line to grow by a strong 34.1% yoy to `8,950cr backed
by 15.4% yoy growth in total volumes and 13.7% yoy growth in net average
realization. On the operating front, EBITDA margin is expected to witness a decline
of 200bp yoy to 11.3% on account of increase in purchases from manufacturing
subsidiary MVML and lower share of tractors in the total volume-mix. As a result,
the bottom-line is expected to report a modest 6.3% yoy growth to `643cr. At
`696, the stock is trading at 13.1x FY2014E earnings. Currently, we have a Buy
rating on the stock with an SOTP based target price of `824.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
35,881
10.0
2,870 47.5
21.3
14.6
2.9
7.7
0.9
FY2014E
70,746
10.0
3,328 53.2
20.5
13.1
2.5
6.4
0.8
Market Outlook
August 8, 2012
ABB India (CMP: `791, TP: `498, Downside: 37.0%)

For 2QCY2012, we expect ABB India (ABB) to post decent top-line growth of
10.0% yoy to `1,884cr, driven by the companys balanced performance across all
segments. EBITDA margin is likely witness marginal improvement of 30bp yoy to
5.3%. Aided by modest revenue growth and margin expansion; ABBs bottom line
is expected to jump by 22.3% to `47.3cr. We maintain our Sell recommendation
on the stock with a target price of `498.
Y/E
March
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
8,760
386.3
18
14.4
43.4
5.8
24.8
1.9
FY2014E
10,023
7.5
440 20.7
14.6
38.1
5.2
21.9
1.6
Quarterly Bloomberg Brokers Consensus Estimate

ABB - (08/08/2012)
Particulars (` cr)
Net sales
2QCY12E
2QCY11
y-o-y (%)
1QCY12
q-o-q (%)
1,885
1,693
11
1,773
EBITDA
110
83
32
98
13
EBITDA margin (%)
5.9
4.9
Net profit
63
39
5.5
64
48
33
Bharti Airtel Ltd - Consolidated (08/08/2012)

Particulars (` cr)
Net sales
EBITDA
EBITDA margin (%)
Net profit
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
19,514
16,975
15
18,729
6,540
5,706
15
6,231
33.5
33.6
1,245
1,205
33.3
3
1,008
24
Mahindra & Mahindra Ltd - (08/08/2012)

Particulars (` cr)
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
8,926
6,673
34
9,241
(3)
EBITDA
964
897
1,268
(24)
EBITDA margin (%)
10.8
13.4
Net profit
615
605
Net sales
13.7
2
874
(30)
Tata Power Ltd - Consolidated (08/08/2012)

Particulars (` cr)
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
Net sales
6,926
5,805
19
7,170
(3)
EBITDA
1,460
1,542
1,412
EBITDA margin (%)
22.3
24.3
Net profit
423
501
20.4
(16)
(572)
(174)
Market Outlook
August 8, 2012
Power Finance Corporation Ltd (08/08/2012)

Particulars (` cr)
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
858
686
25
818
Net profit
GMR Infra Ltd - Consolidated (09/08/2012)

Particulars (` cr)
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
2,055
1,864
10
2,099
(2)
EBITDA
557
498
12
145
284
EBITDA margin (%)
27.1
26.7
(126)
(135)
Net sales
Net profit
6.9
(7)
(586)
(78)
HPCL Ltd - (09/08/2012)

Particulars (` cr)
Net sales
EBITDA
EBITDA margin (%)
Net profit
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
48,495
40,798
19
54,657
(11)
(209)
5,844
(52)
2,806
(2,568)
5.8
-6.3
(3,618)
(3,080)
10.7
17
4,631
(178)
Indian Oil Corp Ltd - (09/08/2012)

Particulars (` cr)
Net sales
EBITDA
EBITDA margin (%)
Net profit
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
117,100
92,100
27
127,736
(8)
(5,221)
(2,362)
121
15,070
(135)
-4.5
-2.6
(7,374)
(3,719)
11.8
98
12,670
(158)
y-o-y (%)
1QCY12
q-o-q (%)
Ranbaxy - Consolidated (09/08/2012)

Particulars (` cr)
Net sales
2QCY12E
2QCY11
2,900
2,054
41
3,695
(22)
EBITDA
522
115
354
1,015
(49)
EBITDA margin (%)
18.0
5.6
Net profit
216
246
27.5
(12)
1,248
(83)
Tata Motors - Consolidated (09/08/2012)

Particulars (` cr)
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
42,707
33,382
28
50,609
(16)
5,518
4,226
31
6,744
(18)
12.9
12.7
2,726
1,996
37
6,258
(56)
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
Net sales
987
829
19
956
EBITDA
231
208
11
251
(8)
EBITDA margin (%)
23.4
25.1
Net profit
105
97
Net sales
EBITDA
EBITDA margin (%)
Net profit
13.3
Bharat Forge Ltd - (10/08/2012)

Particulars (` cr)
26.3
8
55
91
Market Outlook
August 8, 2012
BPCL Ltd - (10/08/2012)

Particulars (` cr)
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
57,166
48,312
18
61,456
(7)
2,174
(262)
4,126
(185)
Net sales
EBITDA
(3,520)
EBITDA margin (%)
4.5
-6.2
Net profit
6.7
935
(537)
3,140
(230)
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
3,582
1,584
126
4,050
(12)
(4,082)
State Bank of India - (10/08/2012)

Particulars (` cr)
Net profit
Siemens India Ltd (10/08/2012)

Particulars (` cr)
3Q SY12E
3Q SY11
Net sales
y-o-y (%)
2Q SY12
q-o-q (%)
3,024
2,779
3,760
(20)
EBITDA
291
250
16
494
(41)
EBITDA margin (%)
9.6
9.0
Net profit
178
155
13.1
15
304
(41)
Sun Pharmaceutical - Consolidated (10/08/2012)

Particulars (` cr)
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
2,224
1,636
36
2,330
(5)
EBITDA
867
547
59
1,175
(26)
EBITDA margin (%)
39.0
33.4
Net profit
648
565
Net sales
50.4
15
904
Economic and Political News
Indian banks can weather impact of drought: RBI

Provisions in land acquisition bill to affect projects: CII
MSME Ministry says not consulted on single brand IKEA FDI move
RBI relaxes KCC repayment norms to help farmers fight drought
Corporate News
Jet Airways to hive off flyer plan; eyes 25% ancillary revenue by FY15
DLFs big-ticket asset sale to garner ` 5,000cr
Infosys launches solution for unified, seamless cloud management
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
(28)
Market Outlook
August 08, 2012
Result Calendar
Date
Company
August 08, 2012
August 10, 2012
Bharti Airtel, M&M, Tata Power Co., Power Fin.Corpn., ABB, Goodyear, HEG, TVS Srichakra
IOC, Tata Motors, Adani Enterp., Ranbaxy, HPCL, GMR Infra., Tech Mahindra, Motherson Sumi, GSPL, ITNL, Apollo
Tyres, Anant Raj, Nagarjuna Const., Alembic Pharma, Hitachi, ITD Cementation
St Bk of India, Sun Pharma, Siemens, BPCL, Bharat Forge, Consolidated Co
August 11, 2012
ONGC, Rcom, Reliance Capital, Madhucon Proj, Godawari Ispat
August 09, 2012
August 12, 2012

August 13, 2012
August 14, 2012
Coal India, NMDC, Tata Steel, Bosch India, GSK Pharma, Suzlon Energy, India Cements
Hindalco, Reliance Power, IDFC, Nalco, Essar Oil, Reliance Infra., Unitech, HDIL, Monnet Ispat, Amara Raja Batteries,
Orchid Chemicals, Simplex Infra, Electrosteel Castings, Finolex Cables
Source: Bloomberg, Angel Research
Global economic events release calendar

Date
August 09, 2012
Country
Event Description
Unit
Period
Bloomberg Data
Last Reported
Estimated
US
Initial Jobless claims
Thousands
Aug 4
365.00
370.00
China
Industrial Production (YoY)
% Change
Jul
9.50
9.70
China
Consumer Price Index (YoY)
% Change
Jul
2.20
1.70
India
Industrial Production YoY
% Change
Jun
2.40
0.70
August 10, 2012
China
Exports YoY%
% Change
Jul
11.30
8.00
August 14, 2012
UK
% Change
Jul
2.40
--
% Change
Jul
7.25
7.30
US
CPI (YoY)
Monthly Wholesale Prices
YoY%
Producer Price Index (mom)
% Change
Jul
0.10
0.20
Euro Zone
Euro-Zone GDP s.a. (QoQ)
% Change
2Q A
--
--
Germany
GDP nsa (YoY)
% Change
2Q P
1.70
--
UK
Jobless claims change
% Change
Jul
6.10
--
US
Industrial Production
Jul
0.43
0.50
US
Consumer price index (mom)
% Change
Jul
--
0.20
US
Housing Starts
Thousands
Jul
760.00
760.00
US
Building permits
Thousands
Jul
760.00
770.00
Euro Zone
Euro-Zone CPI (YoY)
Jul
2.40
--
US
Existing home sales
Millions
Jul
4.37
--
India
August 15, 2012
August 16, 2012
August 22, 2012
Market Strategy
August 8, 2012
Macro watch
Exhibit 1: Quarterly GDP trends
(%)
8.0
6.7
5.9
5.3
3.7
4.0
4.3
3.4
2.7
2.5
Source: CSO, Angel Research
(6.0)
10.0
9.9
Dec-11
Nov-11
Mfg. PMI
60.0
9.8
(0.9)
Exhibit 4: Manufacturing and services PMI
(%)
9.4
(3.2)
(5.0)
Source: MOSPI, Angel Research
Exhibit 3: Monthly WPI inflation trends

12.0
Oct-11
Sep-11
Aug-11
(4.0)
Jul-11
4QFY12
3QFY12
2QFY12
1QFY12
4QFY11
3QFY11
2QFY11
1QFY11
4QFY10
3QFY10
2QFY10
(2.0)
1QFY10
3.0
4QFY09
4.0
2.4
1.0
2.0
5.0
7.7
8.0
Services PMI
58.0
9.5
6.9
7.4
7.7
7.5
7.6
7.3
56.0
Source: MOSPI, Angel Research
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Sep-11
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Exhibit 5: Exports and imports growth trends

Exports yoy growth
(%)
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
Oct-11
54.0
6.0
Aug-11
10.0
6.0
6.0
6.1
Jul-11
6.0
7.4
9.5
10.0
8.0
Jun-11
7.0
8.2
May-12
7.5
8.0
7.6
Apr-12
8.5
9.0
12.0
9.2
Mar-12
9.4
Feb-12
9.8
Jan-12
(%)
10.0
Exhibit 2: IIP trends
Exhibit 6: Key policy rates
Imports yoy growth
75.0
(%)
9.00
60.0
8.00
45.0
Repo rate
Reverse Repo rate
CRR
7.00
30.0
6.00
15.0
5.00
Source: RBI, Angel Research
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
4.00
Aug-11
Jun-12
Apr-12
Mar-12
Feb-12
Jan-12
May-12
(30.0)
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
(15.0)
Jul-11
0.0
Market Outlook
August 08, 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
126
2,451
1,466
1,686
14.8
14.8
7.0
8.1
18.0
15.6
3.8
3.3
22.6
22.5
1.7
1.5
United Phosphorus
Buy
122
170
5,603
8,421
9,263
16.5
16.5
15.0
17.0
8.1
7.2
1.2
1.0
15.6
15.5
0.8
0.7
Amara Raja Batteries
Accumulate
310
345
2,651
2,715
3,041
15.3
15.3
29.2
32.8
10.7
9.5
2.5
2.0
26.0
23.3
0.9
0.8
Apollo Tyres
Buy
81
100
4,060
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
23
30
6,106
14,920
16,850
9.0
9.3
2.2
2.8
10.5
8.4
1.9
1.7
13.3
15.6
0.5
0.4
Automotive Axle
Buy
358
430
541
993
1,140
11.6
11.5
36.9
43.0
9.7
8.3
1.9
1.6
21.2
21.3
0.6
0.5
Bajaj Auto
Neutral
1,668
48,272
21,285
23,927
18.2
18.3
108.5
121.3
15.4
13.8
6.4
5.1
46.1
41.3
1.8
1.6
Bharat Forge
Buy
312
372
7,266
7,173
7,998
16.3
16.5
22.3
26.6
14.0
11.8
2.7
2.3
21.0
21.0
1.1
0.9
Bosch India
Neutral
8,988
28,221
9,106
10,255
19.4
19.3
410.2
460.3
21.9
19.5
4.8
4.0
22.1
20.4
2.7
2.3
CEAT
Buy
102
164
350
4,989
5,634
8.7
8.5
32.7
41.1
3.1
2.5
0.5
0.4
15.8
16.9
0.3
0.2
Exide Industries
Accumulate
130
149
11,076
5,899
6,771
16.0
17.0
7.4
9.1
17.7
14.3
3.2
2.7
19.0
20.2
1.5
1.3
FAG Bearings
Neutral
1,540
2,560
1,505
1,747
17.7
18.0
111.5
130.0
13.8
11.9
2.9
2.4
22.8
21.7
1.4
1.1
Hero Motocorp
Buy
1,953
2,428
38,989
26,097
29,963
15.0
15.3
139.5
151.8
14.0
12.9
6.6
5.0
54.6
44.3
1.2
1.1
JK Tyre
Buy
94
135
386
7,517
8,329
6.1
6.3
26.2
38.5
3.6
2.4
0.5
0.4
13.4
17.2
0.3
0.3
Auto & Auto Ancillary
Mahindra and Mahindra Buy
696
824
42,702
35,881
40,746
10.0
10.0
47.5
53.2
14.6
13.1
2.9
2.5
21.3
20.5
0.9
0.8
1,147
1,227
33,135
42,887
49,079
5.5
6.6
66.8
87.6
17.2
13.1
2.0
1.7
12.1
14.1
0.6
0.5
Buy
163
216
6,398
23,342
26,366
7.8
8.2
13.3
18.0
12.3
9.1
2.9
2.3
26.2
28.4
0.4
0.4
Subros
Buy
30
34
177
1,230
1,378
8.8
8.6
4.5
5.7
6.5
5.2
0.6
0.6
9.8
11.8
0.4
0.3
Tata Motors
Buy
239
305
63,629 191,303 211,004
13.0
12.9
40.7
43.8
5.9
5.5
2.0
1.7
36.0
33.1
0.4
0.4
TVS Motor
Accumulate
39
43
1,850
7,545
8,301
6.2
6.1
4.9
5.4
7.9
7.3
1.4
1.2
18.8
18.2
0.2
0.2
Maruti
Accumulate
Motherson Sumi
Capital Goods
ABB*
Sell
791
498
16,752
8,760
10,023
7.6
7.5
18.2
20.7
43.4
38.1
5.8
5.2
14.4
14.6
1.9
1.7
BGR Energy
Neutral
285
2,056
4,195
4,837
11.0
11.0
30.1
32.4
9.5
8.8
1.6
1.5
18.4
17.6
1.0
1.0
BHEL
Neutral
232
56,784
47,801
43,757
19.4
19.8
25.7
23.9
9.0
9.7
1.9
1.7
22.7
18.3
1.1
0.9
Blue Star
Neutral
193
1,732
3,047
3,328
5.4
6.9
9.6
16.2
20.0
11.9
3.9
3.2
20.7
29.7
0.7
0.5
Crompton Greaves
Accumulate
118
128
7,554
12,691
14,096
7.0
8.5
6.5
9.1
18.1
12.9
1.9
1.8
11.1
14.2
0.6
0.6
Jyoti Structures
Buy
40
67
328
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
69
1,451
6,858
7,431
7.5
8.3
9.0
11.5
6.3
4.9
1.1
0.9
26.9
27.2
0.3
0.3
LMW
Buy
1,742
1,992
1,962
2,369
2,727
11.7
11.7
143.4
166.0
12.1
10.5
2.0
1.9
17.4
18.4
0.3
0.2
Thermax
Neutral
507
6,043
5,514
5,559
8.9
9.6
26.9
28.4
18.9
17.9
3.3
2.9
18.4
17.1
1.0
1.0
Market Outlook
August 08, 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
1,335
25,058
11,220
12,896
20.0
20.6
71.1
81.2
18.8
16.4
3.3
3.0
18.1
19.0
1.9
1.6
Ambuja Cements
Neutral
191
29,320
10,205
11,659
24.6
24.2
10.8
12.0
17.6
15.8
3.7
3.3
19.7
19.8
2.4
2.0
India Cements
Neutral
86
2,631
4,364
4,791
18.9
19.1
9.2
11.4
9.3
7.5
0.7
0.7
8.0
9.5
0.5
0.5
J K Lakshmi Cements
Neutral
100
1,225
1,938
2,246
19.1
20.1
15.2
16.8
6.6
6.0
0.9
0.8
13.8
14.0
0.8
1.1
Madras Cements
Neutral
173
4,111
3,444
3,786
25.5
24.9
14.6
17.1
11.9
10.1
1.7
1.5
15.6
16.0
1.8
1.5
Shree Cements
Neutral
3,069
10,693
5,519
6,293
24.5
23.7
156.6
225.3
19.6
13.6
4.9
4.2
22.3
26.0
1.7
1.3
UltraTech Cement
Neutral
1,638
44,905
20,167
22,752
21.7
23.0
90.8
107.8
18.0
15.2
18.0
15.2
1.8
1.7
209
273
1,100
2,014
2,293
22.4
22.4
22.6
26.7
9.2
7.8
1.0
0.9
11.4
11.9
2.4
2.7
Construction
Ashoka Buildcon
Buy
Consolidated Co
Neutral
17
312
2,489
2,755
7.0
7.8
3.0
4.0
5.7
4.2
0.5
0.4
8.7
10.8
0.3
0.3
Hind. Const.
Neutral
18
1,086
4,239
4,522
9.9
11.2
(2.3)
(1.0)
(7.9)
(18.6)
1.0
1.1
(11.4)
(5.6)
1.2
1.2
IRB Infra
Buy
116
166
3,870
3,964
4,582
42.3
40.2
15.5
16.9
7.5
6.9
1.2
1.0
16.6
15.8
2.6
2.5
ITNL
Buy
173
265
3,362
6,619
7,925
23.8
23.3
22.9
27.8
7.6
6.2
1.1
1.0
15.5
16.4
2.2
2.1
IVRCL Infra
Buy
47
61
1,259
5,510
6,722
8.8
9.0
2.5
4.6
18.6
10.3
0.6
0.6
3.4
5.8
0.7
0.7
Jaiprakash Asso.
Buy
78
91
16,490
15,259
17,502
25.7
24.7
4.2
5.0
18.3
15.5
1.5
1.4
8.5
9.3
2.4
2.1
Larsen & Toubro
Accumulate
1,417
1,553
86,840
60,474
69,091
12.1
11.5
79.7
85.4
17.8
16.6
3.0
2.6
16.3
15.1
1.6
1.4
Madhucon Proj
Buy
37
56
272
2,206
2,502
10.7
10.7
4.6
4.7
7.9
7.9
0.4
0.4
5.2
5.0
0.7
0.7
Nagarjuna Const.
Neutral
40
1,033
5,453
6,169
8.1
8.5
1.6
1.9
24.5
20.9
0.4
0.4
1.8
2.1
0.6
0.7
Patel Engg.
Neutral
85
591
3,609
3,836
13.1
13.1
14.0
14.6
6.0
5.8
0.4
0.4
6.3
6.1
1.0
1.1
Punj Lloyd
Neutral
54
1,780
11,592
12,993
8.4
8.4
1.8
3.2
29.8
16.8
0.6
0.6
2.0
3.4
0.6
0.6
Sadbhav Engg.
Buy
133
182
2,000
2,789
3,147
10.6
10.7
8.4
10.4
15.8
12.8
2.1
1.9
15.0
15.6
0.9
0.8
Simplex Infra
Buy
206
265
1,017
6,732
7,837
8.1
8.4
23.5
29.4
8.7
7.0
0.8
0.7
9.6
11.0
0.5
0.4
Allahabad Bank
Accumulate
133
147
6,628
7,233
8,579
3.1
3.3
40.5
40.9
3.3
3.2
0.6
0.5
19.4
17.0
Andhra Bank
Neutral
99
5,562
5,225
6,024
3.3
3.3
22.7
25.4
4.4
3.9
0.7
0.6
16.0
15.8
Axis Bank
Buy
1,090
1,373
45,166
15,961
19,583
3.1
3.2
117.3
143.1
9.3
7.6
1.7
1.5
20.1
20.8
Bank of Baroda
Buy
658
851
25,779
15,830
19,300
2.6
2.7
118.9
147.1
5.5
4.5
0.9
0.8
16.7
18.0
Bank of India
Buy
289
354
16,556
13,159
15,851
2.4
2.5
61.1
71.1
4.7
4.1
0.8
0.7
16.6
17.0
Bank of Maharashtra
Neutral
Canara Bank
Buy
Central Bank
Neutral
Financials
47
2,742
3,471
3,889
3.1
3.1
9.0
11.5
5.2
4.1
0.7
0.6
13.7
15.5
363
421
16,094
11,334
13,629
2.2
2.3
75.4
85.1
4.8
4.3
0.7
0.7
15.2
15.3
72
5,285
7,181
8,365
2.5
2.7
16.3
21.8
4.4
3.3
0.8
0.7
12.7
15.1
Market Outlook
August 08, 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
402
454
5,953
5,067
5,998
2.1
2.3
105.6
111.0
3.8
3.6
0.7
0.6
17.6
16.3
92
107
3,214
3,177
3,595
2.8
2.8
25.2
25.4
3.7
3.6
0.6
0.6
18.9
16.4
Financials
Corporation Bank
Accumulate
Dena Bank
Buy
Federal Bank
Accumulate
416
459
7,113
2,736
3,165
3.4
3.4
49.3
57.4
8.4
7.3
1.1
1.0
13.9
14.5
HDFC
Reduce
720
671
108,275
7,340
8,805
3.5
3.5
31.5
37.8
22.8
19.0
4.6
4.1
34.8
32.2
HDFC Bank
Neutral
600
141,409
21,936
27,454
4.4
4.4
28.7
36.0
20.9
16.6
4.0
3.4
20.7
22.0
ICICI Bank
Buy
974
1,169
111,931
22,356
27,157
2.9
3.0
68.7
82.0
14.2
11.9
1.7
1.6
14.2
15.5
IDBI Bank
Buy
87
105
11,167
7,952
9,876
1.9
2.2
18.5
23.6
4.7
3.7
0.6
0.5
12.8
14.7
Indian Bank
Accumulate
179
197
7,678
6,294
7,191
3.4
3.4
40.6
44.9
4.4
4.0
0.7
0.6
18.1
17.4
IOB
Accumulate
73
84
5,850
7,473
8,732
2.5
2.5
16.7
22.6
4.4
3.3
0.5
0.5
11.8
14.4
J & K Bank
Neutral
943
4,573
2,525
2,858
3.5
3.5
175.8
183.1
5.4
5.2
1.0
0.8
19.3
17.5
LIC Housing Finance
Accumulate
258
279
13,000
1,867
2,338
2.4
2.4
21.1
28.5
12.2
9.0
2.0
1.7
17.5
20.4
Oriental Bank
Buy
234
278
6,830
6,518
7,458
2.8
2.9
61.3
65.1
3.8
3.6
0.6
0.5
15.2
14.3
Punjab Natl.Bank
Buy
755
975
25,603
20,116
23,625
3.3
3.4
152.8
173.9
4.9
4.3
0.9
0.8
18.2
18.0
South Ind.Bank
Accumulate
23
27
2,661
1,514
1,717
2.8
2.7
4.0
4.2
5.9
5.6
1.1
1.0
20.5
18.5
St Bk of India
Buy
2,059
2,443
138,188
67,783
78,208
3.7
3.6
226.0
264.2
9.1
7.8
1.5
1.3
17.7
18.1
Syndicate Bank
Buy
98
119
5,872
6,997
8,134
3.0
3.1
27.3
29.4
3.6
3.3
0.6
0.6
19.0
17.7
UCO Bank
Neutral
70
4,670
5,642
6,438
2.5
2.5
16.4
17.6
4.3
4.0
0.8
0.7
16.2
15.4
Union Bank
Buy
171
238
9,390
10,299
12,227
2.9
3.0
42.1
49.3
4.1
3.5
0.7
0.6
16.7
17.1
United Bank
Buy
57
78
2,067
3,599
4,212
2.8
3.0
18.2
22.3
3.1
2.6
0.5
0.4
15.0
16.2
Vijaya Bank
Neutral
54
2,659
2,579
3,028
2.1
2.3
8.8
11.6
6.1
4.6
0.7
0.6
11.1
13.3
Yes Bank
Buy
371
453
13,148
3,255
4,228
2.8
3.0
34.2
42.7
10.8
8.7
2.3
1.9
23.3
23.8
3,739
35,863
11,198
13,184
16.3
16.3
121.0
144.8
30.9
25.8
10.4
8.2
37.4
35.3
3.1
2.6
454
633
5,422
5,835
6,824
6.3
6.7
20.7
27.5
21.9
16.5
8.6
6.4
42.7
44.3
0.9
0.8
1,186
16,129
3,018
3,429
20.9
22.3
34.6
41.0
34.3
29.0
31.6
24.0
99.5
94.1
5.2
4.6
FMCG
Asian Paints
Neutral
Britannia
Buy
Colgate
Neutral
Dabur India
Neutral
120
20,939
6,124
7,030
17.0
16.8
4.5
5.2
26.9
23.2
11.1
8.8
43.2
41.5
3.4
2.9
GlaxoSmith Con*
Neutral
2,803
11,787
3,124
3,663
17.1
17.6
103.0
123.3
27.2
22.7
8.4
6.7
34.0
32.9
3.5
2.9
Godrej Consumer
Neutral
605
20,579
5,973
7,000
18.4
18.6
22.8
27.2
26.5
22.3
7.3
5.9
31.3
38.4
3.7
3.1
HUL
Neutral
470
101,669
25,350
28,974
13.9
13.9
14.3
16.5
33.0
28.6
19.6
15.1
70.9
59.8
3.8
3.2
ITC
Neutral
261
204,482
29,513
33,885
35.4
35.8
9.3
10.8
28.1
24.2
9.3
7.8
35.6
35.0
6.5
5.7
Market Outlook
August 08, 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
189
12,169
4,667
5,427
12.8
12.9
6.6
8.1
28.4
23.2
7.6
6.0
30.0
28.8
2.6
2.2
Nestle*
Neutral
4,449
42,895
8,610
10,174
20.9
21.2
114.8
139.8
38.8
31.8
23.4
16.3
71.2
60.3
5.0
4.1
Tata Global
Neutral
130
8,030
7,207
7,927
9.7
10.0
6.6
7.9
19.6
16.5
2.0
1.9
8.6
9.5
1.0
0.9
HCL Tech
Accumulate
531
585
36,803
24,400
27,049
18.6
17.5
41.1
45.0
12.9
11.8
2.9
2.5
22.7
21.1
1.4
1.2
Hexaware
Buy
114
132
3,388
1,921
2,178
20.6
20.0
10.4
11.4
11.0
10.0
2.7
2.3
24.7
23.4
1.5
1.2
Infosys
Accumulate
2,256
2,530
129,529
39,151
41,743
31.6
31.9
161.9
174.5
13.9
12.9
3.3
2.9
23.8
22.1
2.6
2.4
Infotech Enterprises
Accumulate
172
187
1,912
1,889
2,065
18.0
17.5
18.0
19.7
9.5
8.7
1.4
1.2
14.5
13.7
0.7
0.5
KPIT Cummins
Neutral
128
2,281
2,149
2,331
15.6
14.8
10.7
11.2
11.9
11.4
2.5
2.0
20.6
17.8
1.0
0.8
Mahindra Satyam
Neutral
88
10,327
7,492
8,038
17.0
16.3
8.1
8.3
10.8
10.5
1.5
1.3
14.1
12.6
1.0
0.8
Mindtree
Accumulate
638
708
2,599
2,341
2,513
18.6
17.1
66.5
70.8
9.6
9.0
2.1
1.7
22.3
19.3
0.9
0.8
Mphasis
Neutral
404
8,481
5,704
6,009
18.6
17.7
36.0
37.1
11.2
10.9
1.6
1.4
14.0
12.6
1.0
0.9
NIIT
Buy
36
52
596
1,162
1,304
14.8
15.1
7.1
8.8
5.1
4.1
0.9
0.8
16.7
18.4
0.4
0.2
Persistent
Accumulate
376
398
1,504
1,193
1,278
25.6
24.3
42.6
44.3
8.8
8.5
1.5
1.3
17.2
15.5
0.9
0.8
TCS
Accumulate
1,265
1,304
247,510
61,046
67,507
29.3
29.1
67.3
72.4
18.8
17.5
6.0
5.0
31.9
28.3
3.7
3.3
Tech Mahindra
Neutral
756
9,642
6,282
6,477
17.5
16.5
82.9
85.0
9.1
8.9
2.0
1.6
21.6
18.4
1.5
1.3
Wipro
Buy
348
420
85,596
43,492
48,332
19.4
19.3
25.1
28.0
13.9
12.4
2.6
2.2
18.6
18.0
1.6
1.4
D B Corp
Buy
195
236
3,571
1,597
1,785
22.9
24.2
11.1
13.9
17.5
14.0
3.3
2.9
20.2
22.1
2.2
1.9
HT Media
Buy
89
113
2,085
2,111
2,263
15.2
15.2
7.3
8.1
12.1
10.9
1.3
1.2
11.2
11.2
0.5
0.4
Jagran Prakashan
Buy
96
112
3,033
1,506
1,687
22.5
23.2
6.2
7.0
15.5
13.7
3.7
3.3
25.0
25.7
2.2
1.9
PVR
Neutral
181
468
625
732
17.4
17.1
13.3
15.6
13.6
11.6
1.5
1.3
13.2
13.8
1.1
0.9
Sun TV Network
Neutral
290
11,426
2,002
2,296
77.1
76.7
18.9
22.1
15.4
13.1
3.9
3.4
27.7
28.3
5.0
4.2
Bhushan Steel
Neutral
471
9,998
11,979
14,584
31.6
31.0
49.2
61.4
9.6
7.7
1.3
1.1
14.1
15.2
2.8
2.4
Coal India
Neutral
345
217,820
68,841
74,509
25.3
25.3
24.1
26.1
14.3
13.2
3.9
3.2
30.4
26.8
2.3
1.9
Electrosteel Castings
Buy
19
22
661
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
142
50,260
12,446
13,538
56.1
56.6
15.2
16.5
7.9
7.2
1.6
1.3
21.7
19.8
2.2
1.6
Hindalco
Neutral
119
22,735
83,212
91,057
9.0
9.9
13.7
18.1
8.7
6.6
0.7
0.6
7.9
9.6
0.5
0.5
JSW Steel
Neutral
717
15,992
38,740
41,459
17.3
17.0
79.9
89.4
9.0
8.0
0.9
0.8
10.4
10.6
0.8
0.8
MOIL
Accumulate
267
296
4,484
1,007
1,091
56.6
56.9
29.4
31.9
9.1
8.4
1.6
1.4
19.0
18.2
2.3
1.9
Monnet Ispat
Buy
313
447
2,012
3,115
3,748
22.1
25.1
59.1
66.8
5.3
4.7
0.7
0.6
15.6
15.3
1.4
1.0
IT
Media
Metals & Mining
Market Outlook
August 08, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
Sales ( cr )
FY13E
OPM(%)
EPS ( )
FY14E
FY13E
FY14E
FY13E
PER(x)
P/BV(x)
RoE(%)
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
EV/Sales(x)
FY14E
FY13E
FY14E
Metals & Mining

Nalco
Neutral
53
13,762
8,474
9,024
12.6
16.2
2.6
3.6
20.9
14.9
1.1
1.1
5.6
7.5
1.2
1.1
NMDC
Neutral
183
72,515
11,959
13,062
78.2
78.6
19.1
20.9
9.6
8.8
2.4
2.0
27.1
24.4
4.0
3.4
SAIL
Neutral
87
35,894
50,914
60,785
14.6
15.1
9.4
10.5
9.3
8.3
0.8
0.8
9.2
9.6
1.1
1.0
Sesa Goa
Neutral
183
15,865
7,704
8,034
33.6
34.6
42.0
43.1
4.4
4.2
0.9
0.8
22.3
19.2
0.3
Sterlite Inds
Accumulate
104
115
35,051
41,680
45,382
24.2
23.2
16.3
16.9
6.4
6.2
0.7
0.6
11.3
10.7
0.5
0.4
Tata Steel
Buy
406
499
39,436 143,088 148,011
10.9
12.1
53.9
66.0
7.5
6.2
0.9
0.8
12.2
13.4
0.6
0.6
Sarda
Buy
130
148
466
1,251
1,321
22.7
23.4
33.0
37.1
3.9
3.5
0.6
0.5
15.1
14.8
0.7
0.6
Cairn India
Accumulate
330
380
62,990
16,605
17,258
75.4
71.7
57.0
54.9
5.8
6.0
1.1
0.9
20.2
16.3
2.9
2.2
GAIL
Neutral
377
47,872
50,176
55,815
15.5
15.8
35.4
36.5
10.7
10.3
1.9
1.7
18.9
17.0
0.1
ONGC
Accumulate
283
321
241,949 156,331 159,043
37.7
36.3
31.3
32.6
9.0
8.7
1.6
1.4
18.7
17.3
1.2
1.1
Reliance Industries
Neutral
784
256,627 362,700 380,031
Gujarat Gas
Neutral
309
Indraprastha Gas
Neutral
244
3,410
Petronet LNG
Buy
149
176
11,168
Oil & Gas
3,963
7.9
8.0
61.5
64.3
12.8
12.2
1.3
1.2
10.3
9.9
0.7
0.7
3,267
16.1
11.5
21.2
19.2
14.6
16.1
5.0
4.3
33.4
28.7
1.5
1.1
3,040
3,135
24.3
26.7
24.8
27.9
9.8
8.7
2.3
1.9
25.5
23.6
1.1
1.0
22,696
29,145
8.1
6.6
14.1
14.2
10.6
10.5
3.2
2.5
34.1
26.9
0.6
0.4
2,472
Pharmaceuticals
Alembic Pharma
Buy
64
91
1,199
1,624
1,855
14.2
15.6
6.6
9.1
9.6
7.0
2.3
1.8
27.5
29.2
1.0
0.8
Aurobindo Pharma
Buy
112
156
3,261
5,243
5,767
14.6
14.6
11.8
12.6
9.5
8.9
1.0
0.4
11.4
10.9
0.8
0.6
Aventis*
Neutral
2,218
5,108
1,482
1,682
15.5
15.5
95.0
104.0
23.4
21.3
4.1
3.2
18.6
17.0
3.2
2.8
Cadila Healthcare
Accumulate
886
953
18,142
6,196
7,443
18.5
19.5
37.6
47.7
23.6
18.6
5.3
4.2
26.8
27.5
3.0
2.4
Cipla
Accumulate
Dr Reddy's
Neutral
Dishman Pharma
Accumulate
GSK Pharma*
Neutral
Indoco Remedies
Buy
58
92
533
Ipca labs
Buy
417
475
5,259
Lupin
Accumulate
590
647
26,357
Orchid Chemicals
Buy
114
178
Ranbaxy*
Neutral
509
Sun Pharma
Neutral
669
Accumulate
299
352
399
28,251
8,031
9,130
23.4
22.4
18.4
20.0
19.1
17.6
3.2
2.7
17.8
16.6
3.3
2.9
1,657
28,132
10,696
11,662
20.7
21.0
83.7
92.9
19.8
17.8
4.1
3.5
22.4
21.0
2.7
2.5
87
92
700
1,280
1,536
17.8
17.8
9.2
11.3
9.4
7.7
0.7
0.7
7.7
8.5
1.2
1.0
2,107
17,844
2,651
2,993
31.7
31.2
76.0
82.4
27.7
25.6
8.0
6.9
30.8
29.0
5.7
4.9
685
837
15.2
15.2
7.4
8.9
7.8
6.5
1.2
1.0
15.9
16.3
0.9
0.8
2,850
3,474
20.7
20.7
29.2
36.6
14.3
11.4
3.4
2.7
26.1
26.1
2.0
1.6
8,426
10,082
19.7
20.0
27.4
32.4
21.5
18.2
5.2
4.1
27.0
25.2
3.0
2.4
802
2,117
2,434
17.7
17.7
16.7
22.2
6.8
5.1
0.6
0.6
9.5
11.5
1.0
0.9
21,500
12,046
11,980
18.0
15.8
35.7
29.8
14.3
17.1
5.3
4.4
43.1
28.1
1.8
1.8
69,189
9,272
11,080
38.6
38.0
22.7
22.6
29.5
29.6
4.9
4.4
17.9
15.6
6.1
4.8
342
3,736
5,218
5,644
24.2
23.8
44.6
47.6
6.7
6.3
0.7
0.6
11.0
10.6
1.0
1.1
Power
CESC
Market Outlook
August 08, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
Sales ( cr )
FY13E
OPM(%)
EPS ( )
PER(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
P/BV(x)
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Power
GIPCL
Buy
NTPC
Neutral
67
77
1,008
1,557
1,573
29.3
28.7
10.8
11.0
6.2
6.1
0.6
0.6
10.8
10.2
1.1
0.9
167
137,699
74,111
85,789
23.2
23.6
12.4
14.0
13.5
11.9
1.7
1.5
13.0
13.5
2.6
2.3
51
78
1,501
657
875
52.0
56.1
8.4
12.7
6.1
4.0
0.4
0.3
6.3
8.9
3.5
2.7
Real Estate
Anant Raj
Buy
DLF
Neutral
218
36,949
9,878
12,033
44.7
46.1
9.6
13.4
22.7
16.2
1.4
1.4
6.4
8.7
6.1
5.0
HDIL
Buy
84
115
3,505
2,441
3,344
55.1
48.2
22.7
26.6
3.7
3.1
0.3
0.3
8.8
9.4
3.3
2.5
MLIFE
Buy
327
396
1,333
813
901
26.2
26.6
32.0
37.1
10.2
8.8
1.1
1.0
10.4
11.0
2.0
1.7
Bharti Airtel
Neutral
294
111,571
80,076
86,613
32.8
33.5
15.5
19.8
19.0
14.8
2.0
1.8
10.5
11.9
2.1
1.8
Idea Cellular
Neutral
80
26,446
23,209
26,063
26.2
27.5
3.3
4.9
24.3
16.2
1.9
1.7
7.7
10.3
1.6
1.4
Rcom
Neutral
58
11,940
22,125
23,734
31.9
32.0
4.5
5.9
12.9
9.9
0.3
0.3
2.5
3.1
2.0
1.7
Telecom
zOthers
Abbott India
Accumulate
1,503
1,628
3,193
1,661
1,918
9.7
12.0
60.7
90.4
24.8
16.6
5.1
4.1
22.0
27.3
1.7
1.4
Bajaj Electricals
Buy
181
246
1,803
3,569
4,172
8.6
9.2
17.3
22.3
10.5
8.1
2.3
1.9
22.9
25.3
0.5
0.4
Cera Sanitaryware
Buy
297
352
375
396
470
16.7
16.5
28.0
33.2
10.6
8.9
2.2
1.8
23.8
23.1
1.1
0.9
Cravatex
Buy
609
785
157
302
364
5.7
6.0
49.0
71.0
12.4
8.6
3.7
2.6
29.8
30.7
0.6
0.5
CRISIL
Neutral
900
6,313
982
1,136
34.3
34.3
34.3
40.0
26.2
22.5
11.9
9.5
50.9
46.9
6.2
5.2
Finolex Cables
Buy
40
61
609
2,334
2,687
8.8
9.3
7.6
10.2
5.2
3.9
0.7
0.6
13.7
16.1
0.2
0.1
Force Motors
Buy
442
591
576
2,214
2,765
4.5
5.4
39.5
73.9
11.2
6.0
0.5
0.5
4.4
7.6
0.1
0.1
Goodyear India
Accumulate
330
374
762
1,511
1,692
7.9
9.0
31.5
41.3
10.5
8.0
2.1
1.7
21.2
23.5
0.3
0.2
Graphite India
Buy
83
124
1,613
2,158
2,406
18.1
18.9
12.4
14.0
6.7
5.9
0.9
0.8
14.0
14.3
0.9
0.7
Greenply Industries
Buy
185
309
447
1,925
2,235
10.6
10.9
29.6
44.1
6.3
4.2
1.0
0.8
16.8
21.0
0.5
0.4
HEG
Buy
206
242
821
1,746
1,946
16.5
17.7
22.5
32.9
9.1
6.2
0.9
0.9
10.4
14.2
1.1
1.0
Hitachi
Buy
117
160
269
857
968
6.9
8.4
10.2
16.0
11.5
7.3
1.4
1.2
12.9
17.8
0.4
0.4
Honeywell Automation
Accumulate
2,529
2,842
2,236
1,847
2,162
4.3
7.3
61.0
120.0
41.5
21.1
3.3
2.8
9.3
16.3
1.1
0.9
INEOS ABS India
Accumulate
670
744
1,178
1,056
1,081
8.1
10.6
33.8
46.5
19.8
14.4
2.7
2.3
14.7
17.5
1.1
1.0
ITD Cementation
Neutral
230
265
1,535
1,842
11.1
11.1
27.3
38.3
8.4
6.0
0.7
0.6
7.9
10.2
0.6
0.6
Jyothy Laboratories
Accumulate
135
145
2,171
1,248
1,468
9.8
10.4
5.9
7.2
22.7
18.8
3.3
3.0
15.0
16.6
2.1
1.7
MCX
Buy
1,100
1,598
5,612
610
702
65.5
67.0
67.9
79.9
16.2
13.8
4.7
4.0
29.1
28.9
6.1
4.8
MRF
Buy
10,485
12,884
4,447
11,804
12,727
10.4
10.5 1,289.9 1,431.3
8.1
7.3
1.6
1.3
21.3
19.4
0.5
0.5
Page Industries
Neutral
3,058
3,411
887
1,108
18.3
18.6
95.0
120.9
32.2
25.3
16.8
13.6
57.4
59.5
3.8
3.0
Relaxo Footwears
Buy
514
684
616
1,019
1,220
11.8
12.1
48.3
62.2
10.6
8.3
2.7
2.0
28.9
28.2
0.8
0.7
Market Outlook
August 08, 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
zOthers
Sintex Industries
Buy
62
79
1,690
4,751
5,189
16.3
16.6
13.6
15.8
4.5
3.9
0.6
0.5
12.9
13.2
0.7
0.6
Siyaram Silk Mills
Buy
289
392
270
1,042
1,173
12.4
12.5
66.3
78.5
4.4
3.7
0.8
0.7
21.1
20.8
0.5
0.4
S. Kumars Nationwide
Buy
25
45
757
7,279
8,290
21.0
21.0
15.0
17.6
1.7
1.4
0.2
0.2
13.7
13.9
0.7
0.6
SpiceJet
Buy
36
40
1,744
5,647
6,513
3.5
6.5
1.9
4.9
18.5
7.4
43.5
6.3
0.4
0.4
TAJ GVK
Buy
66
108
415
300
319
35.8
36.2
7.9
9.1
8.4
7.3
1.1
1.0
13.9
14.4
1.8
1.5
Tata Sponge Iron
Buy
340
424
523
787
837
16.2
17.5
58.5
66.9
5.8
5.1
0.8
0.7
14.9
15.1
0.3
0.2
TVS Srichakra
Buy
337
462
258
1,612
1,827
9.5
9.8
72.3
92.5
4.7
3.7
1.4
1.0
33.1
32.1
0.4
0.3
United Spirits
Neutral
845
11,057
10,289
11,421
13.5
14.3
31.0
42.9
27.2
19.7
2.1
1.9
8.1
10.3
1.8
1.6
Vesuvius India
Accumulate
369
413
749
628
716
16.4
16.5
29.8
34.4
12.4
10.7
2.2
1.9
18.8
18.6
1.0
0.8
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 07, 2012
Market Outlook
August 08, 2012

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Market Outlook

OIL & GAS

FII Derivatives (August 7, 2012)

Shree Renuka Sug

Net Inflows (August 6, 2012)

Refer detailed news analysis on the following page

Spectrum auction may get pushed to November

Spectrum auction may get pushed to November

RILs Management Committee approves commerciality of three

Coal India Board approves higher penalty for new FSAs

MOIL Ltd (CMP: `267 / TP: `296 /Upside: 11%)

Aurobindo Pharma (CMP: `115/ TP: `156/ Upside: 36%)

Punj Lloyd (CMP: `54 / TP: - / Upside: -)

ABB India (CMP: `791, TP: `498, Downside: 37.0%)

Quarterly Bloomberg Brokers Consensus Estimate

EBITDA margin (%)

Bharti Airtel Ltd - Consolidated (08/08/2012)

Mahindra & Mahindra Ltd - (08/08/2012)

EBITDA margin (%)

Tata Power Ltd - Consolidated (08/08/2012)

EBITDA margin (%)

Power Finance Corporation Ltd (08/08/2012)

GMR Infra Ltd - Consolidated (09/08/2012)

EBITDA margin (%)

HPCL Ltd - (09/08/2012)

Indian Oil Corp Ltd - (09/08/2012)

Ranbaxy - Consolidated (09/08/2012)

EBITDA margin (%)

Tata Motors - Consolidated (09/08/2012)

EBITDA margin (%)

Bharat Forge Ltd - (10/08/2012)

BPCL Ltd - (10/08/2012)

EBITDA margin (%)

State Bank of India - (10/08/2012)

Siemens India Ltd (10/08/2012)

EBITDA margin (%)

Sun Pharmaceutical - Consolidated (10/08/2012)

EBITDA margin (%)

Economic and Political News

Indian banks can weather impact of drought: RBI

August 08, 2012

August 10, 2012

August 11, 2012

ONGC, Rcom, Reliance Capital, Madhucon Proj, Godawari Ispat

August 09, 2012

August 12, 2012

Source: Bloomberg, Angel Research

Global economic events release calendar

August 09, 2012

Initial Jobless claims

Industrial Production (YoY)

Consumer Price Index (YoY)

Industrial Production YoY

August 10, 2012

August 14, 2012

Euro-Zone GDP s.a. (QoQ)

GDP nsa (YoY)