Market Outlook Market Outlook: Dealer's Diary

Market Outlook
August 14, 2012
Dealers Diary
Indian markets are expected to open in green, tracing positive opening trades
in the SGX Nifty and the major Asian indices.
The US markets turned in a relatively lackluster performance during trading on
Monday, eventually ending the session mostly lower due to weaker than
expected Japanese economic growth in the second quarter. The report from
Japan's Cabinet Office showed that Japanese GDP rose by 0.3% sequentially
in the second quarter (expectation of 0.6% growth). The choppy trading in US
markets was a result of traders expressing uncertainty about the near-term
outlook for the markets following recent strength. European stocks were
swinging between gains and losses after German economy minister expressed
disappointment at Greece's efforts to implement necessary reforms tied to its
international aid program. Meanwhile, Italy on Monday raised 8bn through a
12-month bill auction at slightly higher interest rates compared to an earlier
auction.
Domestic Indices
Chg (%)
(Pts)
(Close)
BSE Sensex
0.4
75.7 17,633
Nifty
0.5
27.5
5,348
MID CAP
0.5
29.8
6,129
SMALL CAP
0.5
30.2
6,580
BSE HC
0.2
16.3
7,308
BSE PSU
0.8
52.9
7,137
BANKEX
0.4
48.8 11,938
AUTO
(0.1)
(11.3)
9,356
METAL
0.3
28.1 10,549
OIL & GAS
0.7
54.4
8,364
BSE IT
0.1
7.6
5,550
(Pts)
(Close)
Meanwhile, Indian shares Indian shares ended modestly higher on Monday

shrugging off mixed global cues. Investors now await monthly inflation data
slated for release today for clues on whether the RBI will cut rates further.
Global Indices
0.1
1.7
3,023
Markets Today
FTSE
(0.3)
(15.2)
5,832
The trend deciding level for the day is 17,599 / 5,336 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 17,677 17,720 / 5,364 5,380 levels. However, if NIFTY trades below
17,599 / 5,336 levels for the first half-an-hour of trade then it may correct up to
17,556 17,479 / 5,320 5,293 levels.
Nikkei
(0.1)
(6.3)
8,885
Hang Seng
(0.3)
Indices
S2
S1
PIVOT
R1
R2
Indian ADRs
SENSEX
17,479
17,556
17,599
17,677
17,720
NIFTY
5,293
5,320
5,336
5,364
5,380
News Analysis
CEC clears 16 iron ore leases in Karnataka

L&T bags orders worth `2,008cr
Sun Pharmaceutical Ind. - To hike its stake in Taro
Marui to restart Manesar plant on August 21, 2012
1QFY2013 Result Reviews- Coal India, NMDC, Tata Steel, Bosch, Glaxo
Pharma, India Cem., Patel Engineering
1QFY2013 Result Previews- Hindalco, Nalco, HDIL, Simplex Infra., Orchid
Chemicals.
Refer detailed news analysis on the following page
Net Inflows (August 10, 2012)

` cr
Purch
Sales
Net
MTD
YTD
FII
2,369
2,248
121
3,988
57,269
551
801
(250)
(513)
(8,592)
MFs
FII Derivatives (August 13, 2012)

` cr
Purch
Sales
Net
Open Interest
Index Futures
748
776
(28)
16,414
Stock Futures
1,019
1,461
(442)
25,086
Gainers / Losers
Gainers
Company
Losers
Price (`)
chg (%)
United Spirits
922
11.9
United Breweries
569
9.5
HDIL
Company
Price (`)
chg (%)
302
(2.9)
JPINFRATEC
49
(2.8)
Sun TV Network
86
6.0
Bharat Forge
303
(2.8)
Jet Air India
389
5.7
Aditya Birla Nuv
776
(2.8)
Gujarat Mnrl
200
4.3
Educomp Sol
157
(2.6)
www.angelbroking.com
Dow Jones
NASDAQ
Straits Times
Chg (%)
(0.3)
(38.5) 13,169
(54.8) 20,081
0.4
10.6
3,065
(1.5)
(32.7)
2,136
Chg (%)
(Pts)
(Close)
INFY
(0.9)
(0.4)
$41.4
WIT
(0.6)
(0.0)
$8.1
IBN
(1.5)
(0.5)
$34.4
HDB
(0.9)
(0.3)
$35.3
Shanghai Com
Advances / Declines
BSE
NSE
Advances
1,432
783
Declines
1,326
653
114
71
Unchanged
Volumes (` cr)
BSE
1,858
NSE
8,885
Market Outlook
August 14, 2012
CEC clears 16 iron ore leases in Karnataka

The Supreme Court-appointed Central Empowered Committee (CEC) has
approved 16 iron ore mining leases in Karnataka to resume operations, but has
not permitted them to produce more than one-third of their earlier annual
sanctioned capacity. These mines together have been allowed to produce 8.2mn
tonnes (mt) per annum, as against their original sanctioned capacity of 26.5mn
tonnes. Sesa Goa, with sanctioned capacity of 6mn tonnes per annum, has been
allowed to mine only 2.3mn tonnes per annum. The Supreme Court is likely to
take up the opening of 72 mining leases having less than 50 hectares lease area
in Category B on August 17, 2012. This is positive for Sesa Goa and JSW Steel.
However, this is in line with our expectations and hence, we maintain our Neutral
view on Sesa Goa and JSW Steel.
L&T bags orders worth `2,008cr

L&T Construction has won new orders worth `2,008cr across various business
segments in July and August 2012. The Power Transmission & Distribution IC has
secured new orders worth `607cr in both domestic and international markets. The
Buildings & Factories IC has secured new orders worth `674cr which include
orders from Airport Authority of India for the construction of a new integrated
terminal building and allied works at Chandigarh Airport. The other order is for
the construction of an IT campus at Hyderabad. In the Water and Effluent
Treatment business unit, L&T Construction has secured turnkey order worth `155cr
from Greater Mohali Area Development Authority, Mohali for construction of
Roads, PH services, electrical services including development of parks and
horticulture works. In yet another development the Infrastructure IC has bagged
order worth `275cr from Kolkata Metropolitan Development Authority for design
and construction of four lane flyover, rail overbridges and viaduct at various
locations in Kolkata. L&T Construction has also secured additional orders worth
`297cr from various ongoing projects across business units.
At the CMP of `1,438, the stock is trading at PE of 14.5x FY2014E earnings, after
adjusting for investments, which is below the historical trading multiple for L&T. We
have used the sum-of-the-parts (SOTP) methodology to value the company to
capture all its business initiatives and investments/stakes in the different
businesses. Ascribing separate values to its parent business on a P/E basis and
investments in subsidiaries on P/E, P/BV and mcap basis, our target price works
out to `1,553. Owing to the recent surge in stock price we recommend
Accumulate on the stock.
Sun Pharmaceutical Ind. - To hike its stake in Taro

Sun Pharma and Taro Pharmaceutical Industries Ltd. announced that they have
entered into a merger agreement together with certain affiliates of Sun Pharma.
The merger agreement provides that all shareholders of Taro other than Sun
Pharma and its affiliates will receive a cash payment of $39.5/share upon the
closing of the merger. After the buyback Sun Pharma and its affiliates will
collectively own approximately 66.0% of the outstanding ordinary shares of Taro
and 100% of Taros founders shares, representing approximately 77.5% of the
Market Outlook
August 14, 2012
outstanding voting power in Taro. The closing of the merger is subject to certain
terms and conditions. The transaction will cost the company ~US$200mn. Sun
Pharma is already a cash rich company with cash of more than US$1bn. We
maintain our Neutral view on the stock.
Marui to restart Manesar plant on August 21, 2012

According to media reports, Maruti Suzuki (MSIL) will restart its Manesar plant on
August 21, 2012. MSIL is likely to start with the production of the Swift at the
highly automated Plant B, following up soon after by Plant A which manufactures
the Dzire, A-Star and the SX4. The reports also suggest that MSIL will bring the
entire workforce on the company payroll and do away with contract workers that
form around 40% 45% of the entire workforce. The Manesar plant which has an
installed capacity of 550,000 units has been shutdown since July 18, 2012,
following the labor unrest. The plant which forms ~35% of the total installed
capacity manufactures popular products like Swift, Dzire, A Star and SX4.
We believe that re-opening of the plant is a positive development for MSIL and will
enable the company to ramp-up in time to meet the festival demand. However,
bringing all the employees under company payrolls is likely to increase the
employee cost for company going ahead. MSILs employee cost currently forms
2%-3% of net sales, which is the lowest in the industry for four-wheeler
manufactures. We will wait for more clarity from the management on this front. At
`1,186, the stock is trading at 13.5x FY2014E earnings. Currently we have a
Neutral rating on the stock.
Market Outlook
August 14, 2012
Result Reviews
Coal India (CMP: `348 / TP: -/ Upside: -)
Coal Indias 1QFY2013 sales were in line with our expectations; however, net
profit beat our estimates on account of lower-than-expected staff costs. Coal
Indias 1QFY2013 net sales increased 13.8% yoy to `16,500cr (above our
estimate of `16,361cr) due to increases in both volumes as well as average
realization. Blended average realization on coal sales increased 6.8% yoy to
`1,461/tonne and offtake grew by 6.5% yoy to 113mn tonnes. Production grew
6.4% yoy to 102mn tonnes. However; EBITDA per tonne declined 5.8% yoy to
`455 in 1QFY2013 on account of higher costs. The companys EBITDA increased
marginally by 0.3% yoy to `5,133cr, representing an EBITDA margin of 31.1%.
Other income grew 32.9% yoy to `2,071cr on account of higher cash balance and
increased treasury yield. Adjusted Net income grew by 7.2% yoy to `4,458cr
(above our estimate of `4,090cr). We maintain our Neutral view on the stock.
Y/E
March
Sales
(` cr)
OPM
PAT
EPS
ROE
(%)
(` cr)
(`)
(%)
P/E
P/BV
EV/EBITDA
EV/Sales
(x)
(x)
(x)
(x)
FY2013E
50,229
28.0 10,867 17.2 36.7
20.2
6.6
12.4
3.5
FY2014E
62,415
27.5 14,788 23.4 38.0
14.8
4.9
9.7
2.6
NMDC (CMP: `187, TP: -, Upside :-)

NMDC reported better-than-expected profitability for 1QFY2013. NMDCs net
sales grew by 2.0% yoy to `2,838cr (above our estimates of `2,706cr) mainly due
to higher iron ore realizations in our view. EBITDA increased by 2.1% yoy
to `2,302cr and EBITDA margin remained flat yoy to 81.1%. Other income grew
by 25.5% yoy to `552cr mainly due to higher cash balance. Consequently, net
profit increased by 5.8% yoy to `1,906cr (above our estimate of `1,735cr) in line
with increase in EBITDA. We keep our rating and target price under review.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
11,959
78.2
7,553 19.1 27.1
9.8
2.4
5.2
4.1
FY2014E
13,062
78.6
8,287 20.9 24.4
8.9
2.0
4.5
3.5
Tata Steel (CMP: `396, TP: -/ Upside: -)

Tata Steel reported disappointing set of results for 1QFY2013 mainly due to weak
profitability performance from its European operations. Its consolidated net sales
decreased by 0.5% yoy to 33,821cr (slightly ahead of our estimate of `32,297cr).
Consolidated steel sales volumes declined 6.2% yoy and 8.7% qoq to 5.68mn
tonnes. The companys India operations net sales grew by 13.3% yoy (but declined
6.0% qoq) to `8,908cr due to higher realizations although sales volumes
remained flat yoy (but declined 10.3% qoq) to 1.59mn tonnes. India operations
EBITDA decreased 11.6% yoy and 6.2% qoq to `2,791cr. India operations
Market Outlook
August 14, 2012
EBITDA/tonne also decreased 9.9% yoy (although up 5.6% qoq) to `17,553. On

the international front, Tata Steel Europe (TSE) net sales declined 0.6% yoy to
`20,406cr. Sales volume at TSE declined by 9.5% yoy to 3.21mn tonnes. TSE
EBITDA declined by 67.5% yoy (although up 324.7%% qoq) to `620cr. The
company's consolidated adjusted net profit decreased by 69.9% yoy to `598cr
(significantly below our estimate of `985cr).
Tata Steels consolidated net debt increased to `54,020cr as on June 30, 2012,
compared to `47,657cr as on March 31, 2012. In light of lower-than-expected
profitability for 1QFY2013, we are likely to lower our profitability estimates for
FY2013. Nevertheless, given the recent decline in the stock price, we maintain our
Buy rating on the stock while we keep our target price under review.
Y/E
March
Sales
OPM
(` cr)
(%)
PAT
EPS
ROE
(` cr)
(`)
(%)
P/E
P/BV
EV/EBITDA
EV/Sales
(x)
(x)
(x)
(x)
FY2013E
143,088 10.9
5,812 53.9 13.0
7.3
0.9
5.6
0.6
FY2014E
148,011 12.0
7,120 66.0 14.2
7.6
0.8
4.8
0.6
Bosch (CMP: `8,780/ TP: - / Upside: -)

Bosch (BOS) reported lower-than-expected results for 2QCY2012 primarily due to
increase in raw-material cost pressures led by INR depreciation which led to
327bp yoy (567bp qoq) contraction in operating margins. Top-line posted a
subdued growth of 5.6% yoy (down 5.3% qoq) to `2,174cr, marginally lower-thanestimates, on account of sluggish commercial vehicle (CV) and tractor sales. The
auto segment revenues grew by a modest 5.1% yoy (down 4.4% qoq) due to the
flat growth in the diesel systems segment and 12% yoy decline in exports revenue.
On the other hand, non-auto segment posted a strong growth of 19.9% yoy (down
11.2% qoq) during the quarter. On the operating front, EBITDA margin fell sharply
by 327bp yoy (567bp qoq) to 15.1% primarily on account of increase in rawmaterial expenses led by INR depreciation. The INR depreciation during the
quarter had an impact of 100bp 150bp on the margins. Further, other
expenditure too witnessed a 200bp yoy (280bp qoq) expansion as BOS incurred
an additional charge of `20cr (~100bp impact on EBITDA margin) as tooling cost.
As a result, net profit registered lower-than-expected bottom-line of `247cr,
witnessing a decline of 11.3% yoy (26.3% qoq).
Going ahead, the company is expected to report modest results in 3QCY2012 as
well, as the slowdown in the domestic commercial vehicle (mainly the medium and
heavy commercial vehicle segment) and tractor segments, along with sluggish
exports will negatively impact the companys performance. BOS has also been
suspending operations temporarily at its plants (Bangalore, Nashik and Jaipur)
since June 2012 in a phased manner to align production in-line with the market
demand. We revise downwards our sales and earnings estimates for BOS to factor
in the slowdown in the automotive sector and weak exports demand coupled with
margin pressure due to unfavorable currency movement. At the CMP of `8,780,
the stock is trading at 20.4x CY2013E earnings. We maintain our Neutral rating
on the stock.
Market Outlook
August 14, 2012
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
(` cr)
(`)
(%)
(x)
P/BV
EV/EBITDA
EV/Sales
Dec.
(` cr)
(%)
(x)
(x)
(x)
CY2012E
9,031
17.8
1,174 373.8 20.5 23.5
4.8
15.1
2.5
CY2013E
10,199
18.2
1,354 431.2 19.7 20.4
4.0
12.6
2.2
Glaxo Pharma (CMP: `2,100/ TP: - / Upside: - %)

For 2QCY2012, Glaxo reported 16.1% yoy growth in its net sales to `652cr, just
in line with estimates. The companys gross margin came in at 58.5%, just a bit
lower than our expectation of 59.0%. This aided the OPM of 31.1%, below our
estimate of 31.0%, for 2QCY2012. During the quarter, Glaxo reported a growth
of 11.3% yoy growth in its adj. net profit to `170cr, below our expectation of
`164cr. We maintain our Neutral stance 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)
CY2012E
2,651
31.7
644
76.0
30.8 27.7
5.9
18.7
5.9
CY2013E
2,993
31.2
698
82.4
29.0 25.5
5.1
16.4
5.1
India Cements (CMP: `85/ TP:-/ Upside :-)

India Cements posted a 13.2% yoy growth in its standalone topline to `1,201cr,
which was slightly above our estimates. The topline growth was mainly driven by a
6.9% yoy improvement in cement realization. Volumes grew by a marginal 3.2%
yoy. IPL revenues too rose by a healthy 44% yoy to `122cr. OPM stood at 23.1%
up 28bp on a yoy basis. Despite the better realization, margin improvement was
modest due to increase in freight and power & fuel costs. Per tonne freight costs
rose by ~20% on account of higher diesel cost, fare hike by railways and higher
lead distance. Power and fuel costs were higher on account of power tariff hikes in
Andhra Pradesh and Tamil Nadu. Net profit fell by 39% yoy to `62cr. During the
quarter the company had `20cr of exceptional items related to the IPL franchisee
and `25cr of forex loss, which along with higher depreciation dragged down the
profits. We maintain a neutral view on the stock.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/tone*
Dec.
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(US $)
CY2012E
4,364
18.8
283
9.2
8.0
9.2
0.7
5.5
CY2013E
4,791
19.1
349
11.4
9.5
7.5
0.7
4.9
52
Note: * computed on TTM basis
Patel Engineering (CMP: `81 / TP: - / Upside: -)

For 1QFY2013, Patel Engineering (Patel) posted 4.3% yoy top-line growth to
`789cr. The companys EBITDA margin for the quarter stood at 13.1% a drop of
270bp on yoy basis but an improvement of 360bp on sequential basis. Interest
and depreciation came in at 67cr and `20cr respectively. On the earnings front
Patel reported profit of `7cr a decline of 55.9% on yoy basis owing to lower
EBITDAM and high interest cost. We maintain our Neutral view on the stock.
Market Outlook
August 14, 2012
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
3,609
13.1
98
14.0
6.2
5.8
0.4
7.7
1.0
FY2014E
3,836
13.1
102
14.5
6.1
5.6
0.3
8.0
1.0
Result Previews
Hindalco (CMP: `121/ TP:-/ Upside :-)
Hindalco is slated to report its 1QFY2013 results today. We expect standalone net
sales to increase by 21.5% yoy to `7,265cr. However, EBITDA margin is expected
to contract by 450bp yoy to 9.1% on account of decrease in aluminium prices and
rise in costs of key inputs. Net profit is expected to decrease by 21.2% yoy to
`508cr. 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)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
83,212
9.0
2,617 13.7
7.9
8.9
0.7
5.9
0.5
FY2014E
91,057
9.9
3,455 18.1
9.6
6.7
0.6
5.3
0.5
Nalco (CMP: ` 54/TP:-/ Upside :-)

Nalco is slated to report its 1QFY2013 results today. We expect net sales to
decrease by 3.9% yoy to `1,666cr mainly due to decline in aluminium prices.
EBITDA margin is expected to contract 1,540bp yoy to 13.5% due to lower
realizations and rise in prices of key inputs. Hence, the net profit is expected to
decrease by 55.7% yoy to `167cr. We recommend a Neutral rating 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
8,474
12.6
660
2.6
5.5
21.1
1.2
9.4
1.2
FY2014E
9,024
16.2
924
3.6
7.5
15.1
1.1
7.0
1.1
HDIL (CMP: `86 / TP: `115 / Upside: 34%)

HDIL is expected to continue its healthy performance on the revenue front, as we
project 10% yoy top-line growth to `552cr for 1QFY2013. We expect the
companys EBITDA margin to fall by 90bp yoy to 52%. We expect the reported PAT
to come in at `202cr. We maintain a Buy on the stock, with a Target Price of `115.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
2,441
55.1
943
22.7
8.8
3.8
0.3
5.7
3.1
FY2014E
3,344
48.2
1,106 26.6
9.4
3.2
0.3
4.9
2.4
Market Outlook
August 14, 2012
Simplex Infra (CMP: `197 / TP: `265 / Upside: 35%)

Simplex Infra is expected to continue its healthy performance on the revenue front,
as we project 13.0% yoy top-line growth to `1,425cr for 1QFY2013. We expect
the companys EBITDA margin to fall by 123bp yoy to 8.3%. The bottom line is
expected to be under pressure due to increased interest cost (expected jump of
28.0% yoy), resulting in a yoy decline of 17.7% to `20cr for the quarter. We
maintain a Buy on the stock, with a Target Price of `265.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
6,732
8.1
116
23.4
9.2
8.4
0.7
6.3
0.8
FY2014E
7,837
8.4
127
25.6
9.3
7.7
0.7
5.9
0.7
Orchid Chemicals (CMP: `106, TP: `178, Upside: 68%)

For 1QFY2013, Orchid Chemicals is expected to post net sales of `500cr, up
21.1% yoy, mainly driven by exports. The companys OPM is expected to 17.0% in
1QCY2012 a expansion of 400bps. Net profit during the quarter reported 73.4% yoy
growth to `32.4cr. However, we maintain our buy on the stock with at target price
of `178.
Y/E
March
Sales
OPM
PAT EPS
(` cr)
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
(` cr)
(%)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
2,117
17.7
118 16.7
9.5
6.4
0.6
5.7
1.0
FY2014E
2,434
17.7
157 22.2
11.5
4.8
0.5
4.7
0.8
Quarterly Bloomberg Brokers Consensus Estimate

Essar Oil Ltd - (14/08/2012)
Particulars (` cr)
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
19,268
14,946
29
17,514
10
EBITDA
35
928
(96)
285
(88)
EBITDA margin (%)
0.2
6.2
(790)
469
(268)
(515)
53
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
505
502
167
202
51
416
Net sales
Net profit
1.6
HDIL - Consolidated (14/08/2012)

Particulars (` cr)
Net sales
EBITDA
263
256
EBITDA margin (%)
52.1
51.0
Net profit
151
209
30.5
(28)
97
56
Market Outlook
August 14, 2012
Hindalco Industries Ltd - (14/08/2012)

Particulars (` cr)
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
6,870
5,979
15
7,563
(9)
EBITDA
749
867
(14)
865
(13)
EBITDA margin (%)
10.9
14.5
Net profit
507
644
Net sales
11.4
(21)
640
(21)
Reliance Infrastructure Ltd - (14/08/2012)

Particulars (` cr)
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
4,462
3,371
32
5,674
(21)
EBITDA
483
696
(31)
617
(22)
EBITDA margin (%)
10.8
20.6
Net profit
334
430
Net sales
10.9
(22)
658
(49)
Reliance Power - Consolidated (14/08/2012)

Particulars (` cr)
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
1,005
542
85
533
89
97
179
103
Net sales
EBITDA
364
185
EBITDA margin (%)
36.2
34.1
Net profit
224
196
33.6
14
231
(3)
Unitech Ltd - Consolidated (14/08/2012)

Particulars (` cr)
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
Net sales
638
596
716
(11)
EBITDA
124
120
389
(68)
EBITDA margin (%)
19.4
20.1
85
102
Net profit
54.3
(17)
2647
IDFC Ltd - Consolidated (14/08/2012)

Particulars (` cr)
Net profit
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
371
314
18
332
12
Economic and Political News
Government sets target of US$40.5bn for textiles export in 2012-13

Government receives 6 proposals for 51% FDI in single-brand retail
India lost 7 bn units in power generation during Apr-Jun: Government
Corporate News
No immediate plan for plant reopening announcement: Maruti

India Cements may sell stake in Jagathi Publications
SBI, Macquarie to invest in unit of Ashoka Buildcon
Lodha to buy DLF's Mumbai plot for `2,700cr
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
Market Outlook
August 14, 2012
Result Calendar
Date
Company
August 14, 2012
Hindalco, Reliance Power, IDFC, Nalco, Essar Oil, Reliance Infra., Unitech, HDIL, Monnet Ispat, Amara Raja Batteries,
Orchid Chemicals, Simplex Infra, Electrosteel Castings, Finolex Cables, Cravatex, S. Kumars Nationwide
Source: Bloomberg, Angel Research
Global economic events release calendar

Date
August 14, 2012
Country
UK
Event Description
Unit
Period
Bloomberg Data
Last Reported
Estimated
% Change
Jul
2.40
2.30
% Change
Jul
7.25
7.20
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
--
(0.20)
Germany
GDP nsa (YoY)
% Change
2Q P
1.70
0.90
UK
Jobless claims change
% Change
Jul
6.10
6.00
US
Industrial Production
Jul
0.43
0.50
US
Consumer price index (mom)
% Change
Jul
--
0.20
US
Initial Jobless claims
Thousands
Aug 11
361.00
365.00
US
Housing Starts
Thousands
Jul
760.00
758.00
US
Building permits
Thousands
Jul
760.00
766.00
Euro Zone
Euro-Zone CPI (YoY)
Jul
2.40
2.40
August 22, 2012
US
Existing home sales
Millions
Jul
4.37
4.52
August 23, 2012
Germany
PMI Services
Value
Aug A
50.30
--
Germany
Value
Aug A
43.00
--
Value
Aug A
(21.50)
--
US
PMI Manufacturing
Euro-Zone Consumer
Confidence
New home sales
Thousands
Jul
350.00
360.00
August 24, 2012
UK
GDP (YoY)
2Q P
(0.80)
--
August 28, 2012
US
Consumer Confidence
Aug
65.90
--
August 29, 2012
US
GDP Qoq (Annualised)
% Change
S.A./
1985=100
% Change
2Q S
1.50
--
August 30, 2012
Germany
Unemployment change (000's)
Thousands
Aug
7.00
--
August 31, 2012
India
Qtrly GDP YoY%
% Change
2Q
5.30
--
September 01, 2012
China
PMI Manufacturing
Value
Aug
50.10
--
September 03, 2012
India
Imports YoY%
% Change
Jul
(13.46)
--
India
Exports YoY%
% Change
Jul
(5.45)
--
UK
PMI Manufacturing
Value
Aug
45.40
--
India
August 15, 2012
August 16, 2012
Euro Zone
Market Strategy
August 14, 2012
Macro watch
Exhibit 1: Quarterly GDP trends
(%)
(%)
9.8
10.0
9.4
7.5
8.0
8.0
9.2
8.5
9.0
6.0
8.2
7.4
6.0
8.0
7.6
3.4
5.3
5.0
2.5
2.7
2.5
6.1
5.9
6.0
1.0
2.0
4QFY12
3QFY12
2QFY12
1QFY12
4QFY11
3QFY11
2QFY11
1QFY11
4QFY10
3QFY10
2QFY10
1QFY10
4QFY09
10.0
9.9
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
(5.0)
Mfg. PMI
60.0
9.8
(1.8)
(2.8) (0.9)
(6.0)
Exhibit 4: Manufacturing and services PMI
(%)
9.4
Dec-11
(4.0)
Source: MOSPI, Angel Research
Exhibit 3: Monthly WPI inflation trends

12.0
Nov-11
Oct-11
Sep-11
(2.0)
3.0
Source: CSO, Angel Research
Aug-11
4.0
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
Oct-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
Aug-11
54.0
6.0
Jul-11
10.0
4.3
3.7
4.0
6.7
Jul-11
7.0
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
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
4.00
Aug-11
(30.0)
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
(15.0)
Jul-11
0.0
Market Outlook
August 14, 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
124
2,415
1,466
1,686
14.8
14.8
7.0
8.1
17.7
15.3
3.8
3.2
22.6
22.5
1.7
1.5
United Phosphorus
Buy
120
170
5,529
8,421
9,263
16.5
16.5
15.0
17.0
8.0
7.1
1.2
1.0
15.6
15.5
0.8
0.7
Amara Raja Batteries
Accumulate
318
345
2,716
2,715
3,041
15.3
15.3
29.2
32.8
10.9
9.7
2.5
2.0
26.0
23.3
1.0
0.8
Apollo Tyres
Accumulate
87
99
4,385
13,412
15,041
11.0
11.0
11.5
14.2
7.6
6.2
1.3
1.1
18.7
19.4
0.5
0.4
Ashok Leyland
Buy
23
30
6,120
14,920
16,850
9.0
9.3
2.2
2.8
10.6
8.4
1.9
1.7
13.3
15.6
0.5
0.4
Automotive Axle
Buy
345
430
521
993
1,140
11.6
11.5
36.9
43.0
9.3
8.0
1.9
1.6
21.2
21.3
0.6
0.4
Bajaj Auto
Neutral
1,708
49,424
21,285
23,927
18.2
18.3
108.5
121.3
15.7
14.1
6.5
5.3
46.1
41.3
1.9
1.7
Bharat Forge
Buy
303
359
7,062
7,004
7,985
16.2
16.4
20.8
25.6
14.6
11.9
2.8
2.3
20.3
21.2
1.1
0.9
Bosch India
Neutral
8,784
27,580
9,031
10,199
17.8
18.2
373.8
431.2
23.5
20.4
4.8
4.0
20.5
19.7
2.7
2.3
CEAT
Buy
100
164
343
4,989
5,634
8.7
8.5
32.7
41.1
3.1
2.4
0.5
0.4
15.8
16.9
0.3
0.2
Exide Industries
Accumulate
131
149
11,144
5,899
6,771
16.0
17.0
7.4
9.1
17.8
14.4
3.2
2.7
19.0
20.2
1.6
1.3
FAG Bearings
Neutral
1,568
2,605
1,505
1,747
17.7
18.0
111.5
130.0
14.1
12.1
2.9
2.4
22.8
21.7
1.5
1.2
Hero Motocorp
Buy
1,889
2,428
37,719
26,097
29,963
15.0
15.3
139.5
151.8
13.5
12.5
6.4
4.9
54.6
44.3
1.2
1.0
JK Tyre
Buy
93
135
380
7,517
8,329
6.1
6.3
26.2
38.5
3.5
2.4
0.5
0.4
13.4
17.2
0.3
0.3
Auto & Auto Ancillary
Mahindra and Mahindra Buy
740
879
45,422
36,536
41,650
11.6
11.5
49.3
54.9
15.0
13.5
3.1
2.7
22.1
21.1
1.0
0.8
1,186
34,271
42,887
49,079
5.5
6.6
66.8
87.6
17.8
13.5
2.0
1.8
12.1
14.1
0.6
0.5
Buy
169
216
6,625
23,342
26,366
7.8
8.2
13.3
18.0
12.7
9.4
3.0
2.4
26.2
28.4
0.5
0.4
Subros
Buy
28
34
168
1,230
1,378
8.8
8.6
4.5
5.7
6.2
4.9
0.6
0.6
9.8
11.8
0.4
0.3
Tata Motors
Buy
228
292
60,871 195,096 219,428
12.8
12.8
39.0
43.9
5.9
5.2
1.7
1.3
32.6
28.2
0.4
0.3
TVS Motor
Accumulate
40
43
1,893
7,545
8,301
6.2
6.1
4.9
5.4
8.1
7.4
1.4
1.3
18.8
18.2
0.2
0.2
Maruti
Neutral
Motherson Sumi
Capital Goods
ABB*
Sell
789
498
16,715
8,760
10,023
5.5
7.5
12.4
20.7
63.5
38.0
6.1
5.4
10.1
15.2
1.9
1.6
BGR Energy
Neutral
277
1,995
3,669
4,561
11.0
11.0
24.7
29.6
11.2
9.4
1.7
1.5
15.3
16.7
0.6
BHEL
Neutral
233
56,931
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
1.0
Blue Star
Neutral
189
1,700
3,047
3,328
5.4
6.9
9.6
16.2
19.7
11.6
3.9
3.1
20.7
29.7
0.7
0.5
Crompton Greaves
Accumulate
117
128
7,499
12,691
14,096
7.0
8.5
6.5
9.1
18.0
12.8
1.9
1.7
11.1
14.2
0.6
0.6
Jyoti Structures
Buy
38
67
316
2,622
2,801
10.6
11.0
10.9
13.4
3.5
2.9
0.5
0.4
13.7
14.9
0.3
0.3
KEC International
Buy
58
69
1,487
6,858
7,431
7.5
8.3
9.0
11.5
6.4
5.0
1.2
1.0
26.9
27.2
0.3
0.3
LMW
Accumulate
1,845
1,992
2,078
2,369
2,727
11.7
11.7
143.4
166.0
12.9
11.1
2.1
2.0
17.4
18.4
0.4
0.3
Thermax
Neutral
501
5,970
5,514
5,559
8.9
9.6
26.9
28.4
18.7
17.7
3.2
2.9
18.4
17.1
1.0
1.0
Market Outlook
August 14, 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
1,360
25,542
11,220
12,896
20.0
20.6
71.1
81.2
19.1
16.8
3.4
3.0
18.1
19.0
2.0
1.6
Ambuja Cements
Neutral
197
30,252
10,205
11,659
24.6
24.2
10.8
12.0
18.1
16.3
3.8
3.4
19.7
19.8
2.6
2.1
India Cements
Neutral
85
2,616
4,364
4,791
18.9
19.1
9.2
11.4
9.2
7.5
0.7
0.7
8.0
9.5
0.5
0.5
J K Lakshmi Cements
Neutral
94
1,145
1,964
2,278
19.5
20.4
16.3
17.9
5.7
5.2
0.8
0.7
14.7
14.6
0.7
1.1
Madras Cements
Neutral
173
4,114
3,608
3,928
27.4
26.9
15.6
18.1
11.1
9.6
1.7
1.5
16.8
16.9
1.8
1.5
Shree Cements
Neutral
3,223
11,230
5,519
6,293
24.5
23.7
156.6
225.3
20.6
14.3
5.1
4.4
22.3
26.0
1.7
1.4
UltraTech Cement
Neutral
1,708
46,821
20,167
22,752
21.7
23.0
90.8
107.8
18.8
15.9
18.8
15.9
1.9
1.8
Ashoka Buildcon
Neutral
269
1,416
2,014
2,293
22.4
22.4
22.6
26.7
11.9
10.1
1.3
1.1
11.4
11.9
2.5
2.8
Consolidated Co
Neutral
16
294
2,262
2,522
6.7
7.5
1.5
2.7
10.7
6.0
0.5
0.4
4.4
7.5
0.4
0.4
Hind. Const.
Neutral
17
1,043
4,239
4,522
9.9
11.2
(2.3)
(1.0)
(7.6)
(17.8)
1.0
1.1
(11.4)
(5.6)
1.2
1.2
IRB Infra
Buy
121
166
4,028
3,964
4,582
42.3
40.2
15.5
16.9
7.8
7.2
1.2
1.1
16.6
15.8
2.6
2.5
ITNL
Buy
165
232
3,205
6,840
7,767
26.4
26.1
24.4
28.4
6.8
5.8
1.0
0.9
16.0
16.2
2.6
2.8
IVRCL Infra
Buy
46
61
1,218
5,510
6,722
8.8
9.0
2.5
4.6
18.0
10.0
0.6
0.6
3.4
5.8
0.7
0.7
Jaiprakash Asso.
Buy
75
91
15,980
15,259
17,502
25.7
24.7
4.2
5.0
17.7
15.0
1.5
1.4
8.5
9.3
2.4
2.1
Larsen & Toubro
Accumulate
1,438
1,553
88,251
60,474
69,091
12.1
11.5
79.7
85.4
18.0
16.8
3.0
2.7
16.3
15.1
1.6
1.4
Madhucon Proj
Buy
35
56
258
2,206
2,502
10.7
10.7
4.6
4.7
7.5
7.5
0.4
0.4
5.2
5.0
0.7
0.7
Nagarjuna Const.
Accumulate
41
45
1,057
5,804
6,513
8.0
8.6
3.0
3.5
13.5
11.8
0.4
0.4
3.2
3.6
0.6
0.7
Patel Engg.
Neutral
81
565
3,609
3,836
13.1
13.1
14.0
14.6
5.8
5.6
0.4
0.3
6.3
6.1
1.0
1.1
Punj Lloyd
Neutral
52
1,717
11,892
13,116
8.9
8.9
1.7
3.1
30.5
16.7
0.6
0.6
1.9
3.4
0.6
0.5
Sadbhav Engg.
Buy
132
182
1,978
2,789
3,147
10.6
10.7
8.4
10.4
15.6
12.6
2.1
1.8
15.0
15.6
0.9
0.8
Simplex Infra
Buy
197
265
975
6,732
7,837
8.1
8.4
23.5
29.4
8.4
6.7
0.8
0.7
9.6
11.0
0.5
0.4
Allahabad Bank
Neutral
127
6,330
7,233
8,579
3.1
3.3
40.5
40.9
3.1
3.1
0.6
0.5
19.4
17.0
Andhra Bank
Neutral
95
5,324
4,959
5,787
3.1
3.1
22.7
24.5
4.2
3.9
0.7
0.6
16.0
15.3
Axis Bank
Buy
1,079
1,373
44,725
15,961
19,583
3.1
3.2
117.3
143.1
9.2
7.5
1.7
1.5
20.1
20.8
Bank of Baroda
Buy
628
829
24,585
15,830
19,300
2.6
2.7
118.9
147.1
5.3
4.3
0.8
0.7
16.7
18.0
Bank of India
Buy
271
323
15,541
13,159
15,851
2.4
2.5
61.1
71.1
4.4
3.8
0.8
0.7
16.6
17.0
Bank of Maharashtra
Neutral
Canara Bank
Buy
Central Bank
Neutral
Construction
Financials
46
2,697
3,471
3,889
3.1
3.1
9.0
11.5
5.1
4.0
0.7
0.6
13.7
15.5
354
421
15,662
11,334
13,629
2.2
2.3
75.4
85.1
4.7
4.2
0.7
0.6
15.2
15.3
69
5,112
7,181
8,365
2.5
2.7
16.3
21.8
4.3
3.2
0.7
0.7
12.7
15.1
Market Outlook
August 14, 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
387
436
5,737
5,067
5,998
2.1
2.3
105.6
111.0
3.7
3.5
0.6
0.6
17.6
16.3
88
107
3,081
3,177
3,595
2.8
2.8
25.2
25.4
3.5
3.5
0.6
0.5
18.9
16.4
Financials
Corporation Bank
Accumulate
Dena Bank
Buy
Federal Bank
Accumulate
428
459
7,310
2,697
3,171
3.4
3.4
47.9
58.0
8.9
7.4
1.2
1.0
13.6
14.7
HDFC
Reduce
715
671
107,815
7,340
8,805
3.5
3.5
31.5
37.8
22.7
18.9
4.5
4.0
34.8
32.2
HDFC Bank
Neutral
607
143,201
21,936
27,454
4.4
4.4
28.7
36.0
21.2
16.9
4.1
3.4
20.7
22.0
ICICI Bank
Buy
950
1,169
109,150
22,356
27,157
2.9
3.0
68.7
82.0
13.8
11.6
1.7
1.5
14.2
15.5
IDBI Bank
Buy
85
101
10,866
7,952
9,876
1.9
2.2
18.5
23.6
4.6
3.6
0.6
0.5
12.8
14.7
Indian Bank
Accumulate
173
190
7,433
6,294
7,191
3.4
3.4
40.6
44.9
4.3
3.9
0.7
0.6
18.1
17.4
IOB
Accumulate
71
80
5,675
7,473
8,732
2.5
2.5
16.7
22.6
4.3
3.2
0.5
0.5
11.8
14.4
J & K Bank
Accumulate
925
1,026
4,484
2,625
2,921
3.6
3.5
194.4
191.9
4.8
4.8
0.9
0.8
21.2
18.0
LIC Housing Finance
Accumulate
253
279
12,771
1,867
2,338
2.4
2.4
21.1
28.5
12.0
8.9
2.0
1.7
17.5
20.4
Oriental Bank
Buy
229
278
6,683
6,518
7,458
2.8
2.9
61.3
65.1
3.7
3.5
0.6
0.5
15.2
14.3
Punjab Natl.Bank
Buy
721
950
24,445
20,116
23,625
3.3
3.4
152.8
173.9
4.7
4.2
0.9
0.7
18.2
18.0
South Ind.Bank
Buy
23
27
2,588
1,514
1,717
2.8
2.7
4.0
4.2
5.7
5.4
1.1
0.9
20.5
18.5
St Bk of India
Buy
1,906
2,270
127,884
64,470
75,940
3.5
3.5
224.4
258.7
8.5
7.4
1.4
1.2
17.6
17.8
Syndicate Bank
Buy
94
119
5,679
6,840
7,996
2.9
3.0
25.7
29.2
3.7
3.2
0.6
0.5
17.9
17.8
UCO Bank
Neutral
67
4,457
5,488
6,338
2.4
2.5
17.3
17.7
3.9
3.8
0.8
0.7
17.0
15.3
Union Bank
Buy
162
230
8,930
10,299
12,227
2.9
3.0
42.1
49.3
3.9
3.3
0.7
0.6
16.7
17.1
United Bank
Buy
54
79
1,960
3,634
4,194
2.8
2.9
18.2
23.0
3.0
2.4
0.4
0.4
15.0
16.7
Vijaya Bank
Neutral
52
2,584
2,579
3,028
2.1
2.3
8.8
11.6
5.9
4.5
0.7
0.6
11.1
13.3
Yes Bank
Buy
362
453
12,857
3,255
4,228
2.8
3.0
34.2
42.7
10.6
8.5
2.2
1.8
23.3
23.8
3,773
36,191
11,198
13,184
16.3
16.3
121.0
144.8
31.2
26.1
10.5
8.2
37.4
35.3
3.2
2.7
455
633
5,438
5,835
6,824
6.3
6.7
20.7
27.5
22.0
16.5
8.6
6.4
42.7
44.3
0.9
0.8
1,175
15,981
3,018
3,429
20.9
22.3
34.6
41.0
34.0
28.7
31.3
23.7
99.5
94.1
5.2
4.5
FMCG
Asian Paints
Neutral
Britannia
Buy
Colgate
Neutral
Dabur India
Neutral
123
21,454
6,124
7,030
17.0
16.8
4.5
5.2
27.5
23.8
11.4
9.0
43.2
41.5
3.5
3.0
GlaxoSmith Con*
Neutral
2,775
11,668
3,124
3,663
17.1
17.6
104.5
123.8
26.6
22.4
8.3
6.6
34.4
32.8
3.4
2.8
Godrej Consumer
Neutral
631
21,490
5,973
7,000
18.4
18.6
22.8
27.2
27.7
23.3
7.6
6.1
31.3
38.4
3.8
3.2
HUL
Neutral
491
106,062
25,350
28,974
13.9
13.9
14.3
16.5
34.4
29.8
20.5
15.8
70.9
59.8
4.0
3.4
ITC
Neutral
267
209,025
29,513
33,885
35.4
35.8
9.3
10.8
28.8
24.8
9.5
7.9
35.6
35.0
6.8
5.9
Market Outlook
August 14, 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
191
12,304
4,667
5,427
12.8
12.9
6.6
8.1
28.7
23.5
7.7
6.0
30.0
28.8
2.7
2.2
Nestle*
Neutral
4,429
42,698
8,610
10,174
20.9
21.2
114.8
139.8
38.6
31.7
23.3
16.2
71.2
60.3
5.0
4.1
Tata Global
Neutral
135
8,358
7,207
7,927
9.7
10.0
6.6
7.9
20.4
17.2
2.1
2.0
8.6
9.5
1.1
1.0
HCL Tech
Accumulate
542
585
37,583
24,400
27,049
18.6
17.5
41.1
45.0
13.2
12.0
3.0
2.5
22.7
21.1
1.5
1.3
Hexaware
Accumulate
118
133
3,506
1,947
2,161
22.0
21.4
11.4
12.1
10.4
9.8
2.7
2.3
26.4
24.0
1.5
1.3
Infosys
Accumulate
2,319
2,530
133,158
39,151
41,743
31.6
31.9
161.9
174.5
14.3
13.3
3.4
3.0
23.8
22.1
2.8
2.5
Infotech Enterprises
Accumulate
175
187
1,950
1,889
2,065
18.0
17.5
18.0
19.7
9.7
8.9
1.4
1.2
14.5
13.7
0.7
0.6
KPIT Cummins
Reduce
134
124
2,387
2,149
2,331
15.6
14.8
10.7
11.2
12.5
11.9
2.6
2.1
20.6
17.8
1.1
0.9
Mahindra Satyam
Neutral
94
11,027
7,574
8,062
19.6
18.4
9.5
9.7
9.9
9.7
1.6
1.4
16.1
14.1
1.1
0.9
Mindtree
Accumulate
625
708
2,545
2,341
2,513
18.6
17.1
66.5
70.8
9.4
8.8
2.1
1.7
22.3
19.3
0.9
0.8
Mphasis
Neutral
399
8,392
5,704
6,009
18.6
17.7
36.0
37.1
11.1
10.8
1.6
1.4
14.0
12.6
1.0
0.9
NIIT
Accumulate
35
40
579
1,162
1,304
14.8
15.1
7.1
8.8
4.9
4.0
0.8
0.7
16.7
18.4
0.3
0.2
Persistent
Neutral
380
1,522
1,193
1,278
25.6
24.3
42.6
44.3
8.9
8.6
1.5
1.3
17.2
15.5
0.9
0.8
TCS
Neutral
1,266
247,784
61,046
67,507
29.3
29.1
67.3
72.4
18.8
17.5
6.0
5.0
31.9
28.3
3.9
3.4
Tech Mahindra
Reduce
816
726
10,413
6,282
6,477
17.5
16.5
82.9
85.0
9.9
9.6
2.1
1.8
21.6
18.4
1.6
1.5
Wipro
Buy
355
420
87,361
43,492
48,332
19.4
19.3
25.1
28.0
14.1
12.7
2.6
2.3
18.6
18.0
1.7
1.4
D B Corp
Buy
187
236
3,427
1,597
1,785
22.9
24.2
11.1
13.9
16.8
13.4
3.2
2.8
20.2
22.1
2.1
1.8
HT Media
Buy
87
113
2,034
2,111
2,263
15.2
15.2
7.3
8.1
11.8
10.7
1.3
1.1
11.2
11.2
0.5
0.4
Jagran Prakashan
Buy
91
112
2,889
1,506
1,687
22.5
23.2
6.2
7.0
14.7
13.0
3.5
3.2
25.0
25.7
2.1
1.9
PVR
Neutral
186
482
625
732
17.4
17.1
13.3
15.6
14.0
11.9
1.5
1.3
13.2
13.8
1.2
1.0
Sun TV Network
Neutral
303
11,925
1,981
2,239
77.0
76.7
18.6
21.3
16.3
14.2
4.1
3.6
27.1
27.5
5.5
4.7
Bhushan Steel
Neutral
470
9,990
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
348
219,525
68,841
74,509
25.3
25.3
24.1
26.1
14.5
13.3
4.0
3.3
30.4
26.8
2.3
2.0
Electrosteel Castings
Buy
19
22
654
1,984
2,074
11.2
12.6
2.0
2.7
9.3
7.0
0.4
0.1
4.2
5.5
0.5
0.5
Hind. Zinc
Accumulate
126
142
53,112
12,446
13,538
56.1
56.6
15.2
16.5
8.3
7.6
1.6
1.4
21.7
19.8
2.4
1.8
Hindalco
Neutral
121
23,214
83,212
91,057
9.0
9.9
13.7
18.1
8.9
6.7
0.7
0.6
7.9
9.6
0.5
0.5
JSW Steel
Neutral
745
16,632
38,740
41,459
17.3
17.0
79.9
89.4
9.3
8.3
0.9
0.8
10.4
10.6
0.9
0.8
MOIL
Neutral
259
4,347
918
993
50.7
50.9
24.5
26.1
10.6
9.9
1.6
1.5
16.0
15.5
2.4
2.1
Monnet Ispat
Buy
310
447
1,995
3,115
3,748
22.1
25.1
59.1
66.8
5.3
4.6
0.7
0.6
15.6
15.3
1.4
1.0
IT
Media
Metals & Mining
Market Outlook
August 14, 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
54
13,878
8,474
9,024
12.6
16.2
2.6
3.6
21.0
15.0
1.2
1.1
5.6
7.5
1.2
1.1
NMDC
Neutral
187
74,061
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
85
35,192
47,252
60,351
14.2
14.8
9.6
11.7
8.9
7.3
0.8
0.7
9.4
10.6
1.2
1.0
Sesa Goa
Neutral
195
16,952
7,704
8,034
33.6
34.6
42.0
43.1
4.6
4.5
1.0
0.8
22.3
19.2
0.4
0.1
Sterlite Inds
Neutral
114
38,294
41,680
45,382
24.2
23.2
16.3
16.9
7.0
6.7
0.8
0.7
11.3
10.7
0.6
0.4
Tata Steel
Buy
396
499
38,426 143,088 148,011
10.9
12.1
53.9
66.0
7.3
6.0
0.9
0.8
12.2
13.4
0.6
0.6
Sarda
Accumulate
129
148
461
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
0.7
Prakash Industries
Buy
61
73
819
2,694
2,906
14.6
16.6
17.9
22.6
3.4
2.7
0.4
0.3
11.4
12.8
0.5
0.4
Cairn India
Buy
329
380
62,742
16,605
17,258
75.4
71.7
57.0
54.9
5.8
6.0
1.1
0.9
20.2
16.3
2.8
2.2
GAIL
Neutral
369
46,794
50,176
55,815
15.5
15.8
35.4
36.5
10.4
10.1
1.8
1.6
18.9
17.0
0.1
ONGC
Accumulate
281
321
240,238 156,331 159,043
37.7
36.3
31.3
32.6
9.0
8.6
1.6
1.4
18.7
17.3
1.2
1.1
Reliance Industries
Neutral
788
257,871 362,700 380,031
7.9
8.0
61.5
64.3
12.8
12.3
1.3
1.2
10.3
9.9
0.7
0.7
Gujarat Gas
Neutral
303
3,883
2,472
3,267
16.1
11.5
21.2
19.2
14.3
15.8
4.9
4.2
33.4
28.7
1.5
1.1
Indraprastha Gas
Neutral
257
3,591
3,040
3,135
24.3
26.7
24.8
27.9
10.4
9.2
2.4
2.0
25.5
23.6
1.2
1.0
Petronet LNG
Gujarat State Petronet
Ltd.
Pharmaceuticals
Buy
152
176
11,366
22,696
29,145
8.1
6.6
14.1
14.2
10.8
10.7
3.2
2.6
34.1
26.9
0.6
0.4
72
4,066
1,041
939
91.8
91.9
8.5
7.4
8.5
9.8
1.4
1.3
18.1
14.0
4.8
5.3
Alembic Pharma
Buy
60
91
1,122
1,624
1,855
14.2
15.6
6.6
9.1
9.0
6.5
2.2
1.7
27.5
29.2
0.9
0.8
Aurobindo Pharma
Buy
105
156
3,057
5,243
5,767
14.6
14.6
11.8
12.6
8.9
8.3
0.9
0.4
11.4
10.9
0.7
0.6
Aventis*
Neutral
2,210
5,090
1,482
1,682
15.5
15.5
95.0
104.0
23.3
21.3
4.1
3.2
18.6
17.0
3.2
2.8
Cadila Healthcare
Accumulate
878
953
17,978
6,196
7,443
18.5
19.5
37.6
47.7
23.4
18.4
5.2
4.2
26.8
27.5
2.9
2.3
Cipla
Accumulate
350
399
28,098
8,031
9,130
23.4
22.4
18.4
20.0
19.0
17.5
3.1
2.7
17.8
16.6
3.3
2.8
Dr Reddy's
Neutral
1,641
27,850
10,696
11,662
20.7
21.0
83.7
92.9
19.6
17.7
4.1
3.4
22.4
21.0
2.7
2.5
Dishman Pharma
Neutral
89
721
1,280
1,536
17.8
17.8
9.2
11.3
9.7
7.9
0.7
0.7
7.7
8.5
1.2
1.0
GSK Pharma*
Neutral
2,100
17,788
2,651
2,993
31.7
31.2
76.0
82.4
27.6
25.5
7.9
6.9
30.8
29.0
5.8
5.0
Indoco Remedies
Buy
59
92
544
685
837
15.2
15.2
7.4
8.9
8.0
6.6
1.2
1.0
15.9
16.3
1.0
0.8
Ipca labs
Buy
402
475
5,075
2,850
3,474
20.7
20.7
29.2
36.6
13.8
11.0
3.2
2.6
26.1
26.1
1.9
1.6
Lupin
Accumulate
583
647
26,070
8,426
10,082
19.7
20.0
27.4
32.4
21.3
18.0
5.1
4.1
27.0
25.2
3.0
2.4
Orchid Chemicals
Buy
106
178
748
2,117
2,434
17.7
17.7
16.7
22.2
6.4
4.8
0.6
0.5
9.5
11.5
1.0
0.8
Ranbaxy*
Neutral
484
20,425
12,046
11,980
18.0
15.8
35.7
29.8
13.6
16.2
5.1
4.1
43.1
28.1
1.7
1.7
Oil & Gas
Neutral
Market Outlook
August 14, 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
Neutral
682
70,523
9,752
12,134
41.6
41.6
26.0
28.2
26.2
24.2
4.9
4.2
20.3
18.8
6.5
5.0
CESC
Accumulate
304
342
3,804
5,218
5,644
24.2
23.8
44.6
47.6
6.8
6.4
0.7
0.7
11.0
10.6
1.0
1.1
GIPCL
Accumulate
67
77
1,016
1,557
1,573
29.3
28.7
10.8
11.0
6.2
6.1
0.7
0.6
10.8
10.2
1.1
1.0
NTPC
Neutral
172
141,904
74,111
85,789
23.2
23.6
12.4
14.0
13.9
12.3
1.7
1.6
13.0
13.5
2.6
2.4
48
78
1,415
657
875
52.0
56.1
8.4
12.7
5.7
3.8
0.4
0.3
6.3
8.9
3.4
2.6
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
6.2
5.1
86
115
3,597
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
11.0
2.1
1.8
Pharmaceuticals
Sun Pharma
Power
Real Estate
Anant Raj
Buy
DLF
Neutral
HDIL
Buy
MLIFE
Accumulate
349
396
1,424
813
901
26.2
26.6
32.0
37.1
10.9
9.4
1.1
1.0
10.4
Bharti Airtel
Neutral
260
98,717
79,542
87,535
30.9
32.2
10.3
15.0
25.3
17.3
1.8
1.7
7.2
9.6
1.9
1.6
Idea Cellular
Neutral
75
24,940
22,988
25,333
26.4
26.9
3.5
4.9
21.7
15.4
1.8
1.6
8.1
10.2
1.5
1.3
Rcom
Neutral
56
11,497
22,125
23,734
31.9
32.0
4.5
5.9
12.4
9.5
0.3
0.3
2.5
3.1
2.0
1.6
Telecom
zOthers
Abbott India
Accumulate
1,543
1,628
3,280
1,662
1,899
11.4
12.5
69.8
90.4
22.1
17.1
5.1
4.1
24.9
26.6
1.8
1.5
Bajaj Electricals
Buy
176
246
1,754
3,569
4,172
8.6
9.2
17.3
22.3
10.2
7.9
2.2
1.8
22.9
25.3
0.5
0.4
Cera Sanitaryware
Accumulate
310
352
393
396
470
16.7
16.5
28.0
33.2
11.1
9.4
2.3
1.9
23.8
23.1
1.1
0.9
Cravatex
Buy
611
785
158
302
364
5.7
6.0
49.0
71.0
12.5
8.6
3.7
2.6
29.8
30.7
0.6
0.5
CRISIL
Neutral
876
6,147
982
1,136
34.3
34.3
34.3
40.0
25.5
21.9
11.6
9.2
50.9
46.9
5.8
4.9
Finolex Cables
Buy
39
61
603
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
438
591
570
2,214
2,765
4.5
5.4
39.5
73.9
11.1
5.9
0.5
0.5
4.4
7.6
0.1
0.1
Goodyear India
Accumulate
333
370
769
1,543
1,646
8.1
9.2
32.3
39.4
10.3
8.5
2.1
1.8
21.7
22.4
0.3
0.2
Graphite India
Buy
82
124
1,611
2,158
2,406
18.1
18.9
12.4
14.0
6.6
5.9
0.9
0.8
14.0
14.3
0.9
0.7
Greenply Industries
Buy
192
309
464
1,925
2,235
10.6
10.9
29.6
44.1
6.5
4.4
1.1
0.9
16.8
21.0
0.5
0.4
HEG
Accumulate
213
229
850
1,586
1,685
17.9
18.1
16.1
25.7
13.2
8.3
1.0
0.9
7.5
11.6
1.2
1.1
Hitachi
Buy
110
160
252
857
968
6.9
8.4
10.2
16.0
10.8
6.9
1.3
1.1
12.9
17.8
0.4
0.3
Honeywell Automation
Buy
2,456
2,842
2,172
1,847
2,162
4.3
7.3
61.0
120.0
40.3
20.5
3.2
2.8
9.3
16.3
1.1
0.9
INEOS ABS India
Accumulate
675
744
1,187
1,056
1,081
8.1
10.6
33.8
46.5
19.9
14.5
2.8
2.4
14.7
17.5
1.1
1.0
ITD Cementation
Neutral
230
265
1,451
1,669
12.3
12.4
32.4
41.5
7.1
5.5
0.6
0.6
9.4
10.9
0.6
0.6
Jyothy Laboratories
Accumulate
136
145
2,195
1,248
1,468
9.8
10.4
5.9
7.2
23.0
19.0
3.3
3.0
15.0
16.6
2.1
1.8
MCX
Buy
1,160
1,598
5,915
610
702
65.5
67.0
67.9
79.9
17.1
14.5
5.0
4.2
29.1
28.9
6.8
5.4
MRF
Buy
10,664
12,884
4,523
11,804
12,727
10.4
10.5 1,289.9 1,431.3
8.3
7.5
1.6
1.3
21.3
19.4
0.5
0.5
Market Outlook
August 14, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
3,129
569
684
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
3,490
887
1,108
18.3
18.6
95.0
120.9
33.0
25.9
17.2
14.0
57.4
59.5
4.0
3.2
683
1,019
1,208
12.3
13.0
51.0
68.4
11.2
8.3
2.9
2.2
30.3
30.2
0.8
0.7
zOthers
Page Industries
Neutral
Relaxo Footwears
Buy
Sintex Industries
Buy
61
79
1,665
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
271
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
23
45
684
7,279
8,290
21.0
21.0
15.0
17.6
1.5
1.3
0.2
0.2
13.7
13.9
0.7
0.6
SpiceJet
Accumulate
35
40
1,717
5,647
6,513
3.5
6.5
1.9
4.9
18.2
7.2
42.9
6.2
0.4
0.4
TAJ GVK
Buy
67
108
422
300
319
35.8
36.2
7.9
9.1
8.5
7.4
1.1
1.0
13.9
14.4
1.7
1.5
Tata Sponge Iron
Buy
331
424
510
787
837
16.2
17.5
58.5
66.9
5.7
5.0
0.8
0.7
14.9
15.1
0.3
0.2
TVS Srichakra
Accumulate
305
335
233
1,476
1,643
7.1
8.2
24.7
42.8
12.3
7.1
1.5
1.2
16.6
24.8
0.4
0.3
United Spirits
Neutral
922
12,064
10,289
11,421
13.5
14.3
31.0
42.9
29.7
21.5
2.3
2.1
8.1
10.3
1.9
1.7
Vesuvius India
Accumulate
363
413
737
628
716
16.4
16.5
29.8
34.4
12.2
10.6
2.1
1.8
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 13, 2012
Market Outlook
August 14, 2012

Market Outlook Market Outlook: Dealer's Diary

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Market Outlook

August 14, 2012

OIL & GAS

Meanwhile, Indian shares Indian shares ended modestly higher on Monday

CEC clears 16 iron ore leases in Karnataka

Refer detailed news analysis on the following page

Net Inflows (August 10, 2012)

FII Derivatives (August 13, 2012)

Jet Air India

Aditya Birla Nuv

CEC clears 16 iron ore leases in Karnataka

L&T bags orders worth `2,008cr

Sun Pharmaceutical Ind. - To hike its stake in Taro

Marui to restart Manesar plant on August 21, 2012

28.0 10,867 17.2 36.7

27.5 14,788 23.4 38.0

NMDC (CMP: `187, TP: -, Upside :-)

7,553 19.1 27.1

8,287 20.9 24.4

Tata Steel (CMP: `396, TP: -/ Upside: -)

EBITDA/tonne also decreased 9.9% yoy (although up 5.6% qoq) to `17,553. On

5,812 53.9 13.0

7,120 66.0 14.2

Bosch (CMP: `8,780/ TP: - / Upside: -)

1,174 373.8 20.5 23.5

1,354 431.2 19.7 20.4

Glaxo Pharma (CMP: `2,100/ TP: - / Upside: - %)

India Cements (CMP: `85/ TP:-/ Upside :-)

Note: * computed on TTM basis

Patel Engineering (CMP: `81 / TP: - / Upside: -)

Nalco (CMP: ` 54/TP:-/ Upside :-)

HDIL (CMP: `86 / TP: `115 / Upside: 34%)

Simplex Infra (CMP: `197 / TP: `265 / Upside: 35%)

Orchid Chemicals (CMP: `106, TP: `178, Upside: 68%)

Quarterly Bloomberg Brokers Consensus Estimate

EBITDA margin (%)

HDIL - Consolidated (14/08/2012)

EBITDA margin (%)

Hindalco Industries Ltd - (14/08/2012)

EBITDA margin (%)

Reliance Infrastructure Ltd - (14/08/2012)

EBITDA margin (%)

Reliance Power - Consolidated (14/08/2012)

EBITDA margin (%)

Unitech Ltd - Consolidated (14/08/2012)

EBITDA margin (%)

IDFC Ltd - Consolidated (14/08/2012)

Economic and Political News

Government sets target of US$40.5bn for textiles export in 2012-13

No immediate plan for plant reopening announcement: Maruti

August 14, 2012

Source: Bloomberg, Angel Research

Global economic events release calendar

August 14, 2012

Euro-Zone GDP s.a. (QoQ)

GDP nsa (YoY)

Jobless claims change

Consumer price index (mom)

Initial Jobless claims

Euro-Zone CPI (YoY)

August 22, 2012

Existing home sales