Market Outlook Market Outlook: Dealer's Diary

Market Outlook
October 17, 2012
Dealers Diary
The Indian markets are expected to open in the green, tracking positive opening in
most of the Asian markets, with expectations that policy makers around the world
will succeed in reducing market risks and gradually turning the global economy
around.
Domestic Indices
Chg (%)
(Pts)
(Close)
BSE Sensex
(0.7) (135.9) 18,578
Nifty
(0.7)
(39.3)
5,648
MID CAP
(0.7)
(48.1)
6,633
SMALL CAP
(0.4)
(29.2)
7,111
The US markets closed higher yesterday, buoyed by strong earnings from several
major companies, including financial giant Goldman Sachs (GS), Coca-Cola and
Johnson & Johnson, and reports that Spain is mulling a request for a line of credit
from the European Union. A report showed a rebound in industrial production to
0.4% in September from -1.4% earlier in August. European stocks also gained
ground, commodities rose and the euro held steady against the dollar after a key
survey revealed German investor confidence improved for a second month in
October, with the risks faced by the economy abating somewhat in the recent
weeks.
BSE HC
(0.6)
(45.7)
7,549
BSE PSU
(0.9)
(69.0)
7,355
BANKEX
(0.8) (109.0) 13,027
AUTO
(0.9)
METAL
(1.9) (200.8) 10,410
OIL & GAS
(0.8)
(65.2)
8,524
BSE IT
(0.1)
(7.9)
5,677
(Pts)
(Close)
Dow Jones
1.0
Meanwhile the Indian markets fell yesterday notwithstanding firm global cues, as
the opposition parties demanded a probe into the mounting controversy over a
land deal between Robert Vadra and DLF. On the global front, other Asian stocks
rose broadly, led by exporters on better-than-expected US retail sales data and
easing concerns about a Greek exit from the Eurozone.
NASDAQ
1.2
37.0
3,101
FTSE
1.1
64.9
5,871
Nikkei
1.4
123.4
8,701
Hang Seng
0.3
Straits Times
0.1
3.8
3,047
Markets Today
Shanghai Com
0.0
0.1
2,099
Chg (%)
(Pts)
(Close)
0.0
0.0
$44.6
The trend deciding level for the day is 18,643 / 5,666 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 18,736 18,895 / 5,696 5,744 levels. However, if NIFTY trades below
18,643 / 5,666 levels for the first half-an-hour of trade then it may correct up to
18,484 18,391 / 5,618 5,587 levels.
Indices
S2
S1
PIVOT
R1
R2
SENSEX
18,391
18,484
18,643
18,736
18,895
NIFTY
5,587
5,618
5,666
5,696
5,744
News Analysis
Maruti Suzuki launches Alto 800 at `2.44lakhs

2QFY2013 Result Review: Shree Cement, MindTree
2QFY2013 Result Preview: HCL Technologies, Infotech Enterprises
` cr
Purch
Sales
Net
MTD
YTD
FII
1,271
1,104
167
22,202
66,048
473
472
(4,362)
(10,036)
FII Derivatives (October 16, 2012)

` cr
Purch
Sales
Net
Open Interest
Index Futures
1,063
1,196
(133)
14,768
Stock Futures
1,350
1,500
(151)
30,350
Gainers / Losers
Gainers
Losers
Price (`)
chg (%)
64
6.8
HDIL
1,275
4.2
Reliance Comm
59
(4.9)
157
3.6
Unitech
26
(4.8)
Axis Bank
1,146
2.5
Reliance Power
100
(4.3)
Maruti Suzuki
1,367
2.1
DLF
208
(4.3)
Essar Oil
United Spirits
Exide Industries
www.angelbroking.com
INFY
Chg (%)
127.6 13,552
58.8 21,207
WIT
0.5
0.0
$8.5
IBN
(0.2)
(0.1)
$39.9
HDB
(0.6)
(0.2)
$37.5
Advances / Declines
BSE
NSE
Advances
1,179
537
Declines
1,712
986
123
66
Volumes (` cr)
Net Inflows (October 15, 2012)
Company
Indian ADRs
Unchanged
Refer detailed news analysis on the following page
MFs
Global Indices
(94.6) 10,149
Company
Price (`)
chg (%)
101
(5.8)
BSE
2,936
NSE
10,738
Market Outlook
October 17, 2012
Maruti Suzuki launches Alto 800 at `2.44lakhs

Maruti Suzuki (MSIL) launched its much awaited new small car, Alto 800 in petrol
and CNG options priced between `2.44lakhs to `3.56lakhs. The new Alto 800 is
based on the existing Alto platform and is powered by a 796cc three-cylinder
engine. According to the company, the new car has been developed at an
investment of `470cr (MSIL as well as vendors) and will be rolled out from the
companys Gurgaon facility in three petrol and three factory fitted CNG variants.
The new Alto 800 sports a fresh look, is more spacious and is 15% more fuel
efficient than the previous model. The company has already received 10,000
bookings for the new Alto 800. The new car has been competitively priced and will
take on Hyundais Eon and General Motors Chevrolet Spark which are available
at `2.75lakhs and `2.85lakhs, respectively.
We expect the launch of the new car ahead of the festival season to revive the
volumes of the company in the entry level segment which are down 21.2% yoy (as
against 1.4% decline in total volumes) YTD in FY2013. Further, MSIL is expected to
begin exports (to Africa and Latin America) of the new car from January 2013,
which will also lend momentum to the volumes. Nonetheless, due to challenging
macro-environment, dampened consumer sentiments and increasing competition
we expect MSIL to clock ~5% volume growth in FY2013. At `1,367 the stock is
trading at 14.8x FY2014E earnings which is in-line with its historical average of
15x. We maintain our Neutral rating on the stock.
Result Review
Shree Cement (CMP: `4,049/TP:-/Upside:-)
Shree Cement (SRCM) posted a 55.4% yoy growth in its 1QFY2013 top-line, which
is ahead of our estimates of a growth of 46.1% yoy. The stellar performance was
on account of a 27.3% yoy growth (vs our estimate of a 26.2% yoy growth) in
cement volumes coupled with a 10% yoy growth (vs our estimate of an 8.4% yoy
growth) in cement realization. The power business too posted a multifold growth
on a yoy basis in revenue to `136cr (`4.2cr in 2QFY2012). The OPM rose by
649bp yoy to 29.7% aided by better cement realization. The net profit stood at
`229cr up 519.8% on a yoy basis aided by a strong operational performance and
41.8% yoy decline in depreciation to `94cr (`162cr). We maintain our neutral view
on the stock.
Y/E
Sales
OPM
PAT
EPS
RoE
P/E
P/BV
EV/EBITDA
EV/Tonne*
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(US $)
FY2013E
5,630
29.5
775
223
25.3
18.2
4.1
6.5
137
FY2014E
6,187
27.9
903
259
23.8
15.6
3.4
5.5
Note: * computed on TTM basis
MindTree (CMP: `677 / TP: Under review)

MindTree reported broadly in-line set of results for 2QFY2013. The volume as well
as USD revenue growth was muted at 1.0% and 1.7%, respectively. USD revenue
came in at US$107.3mn. In INR terms, revenue came in at `596cr, up 5.9% qoq.
Operating margins surprised positively with EBITDA growing by ~125bp qoq to
Market Outlook
October 17, 2012
22.1%, despite having some negative impact of wage hike which got offset by
operational efficiencies and INR depreciation. PAT came in at `72cr, down 18.8%
qoq, hit because of forex loss of ~`42cr but this loss was partially recouped by
lower tax outgo.
Because of muted growth in 1HFY2013, management lowered its revenue growth
guidance from 11-14% earlier to less than 11% now, which doesnot bode very
well with the company though this was already factored in our estimates keeping
in mind the stretched growth rates required quarterly (FY2013E USD revenue
growth 9.5%). The company has recently set up a team to chase large deals and
management indicated that large deal closure is happening but at a slower rate.
We continue to be positive on the stock owing to its diversified revenue portfolio
and past performance. The target price is currently 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
2,334
19.5
290
70.4
23.3
9.6
2.2
4.8
0.9
FY2014E
2,481
17.6
318
77.2
20.4
8.8
1.8
4.5
0.8
Result Preview
HCL Technologies (CMP: `584 / TP: `632 / Upside: 8%)
HCL Technologies is slated to announce its 1QFY2013 numbers today. We expect
the company to post revenue of US$1,119mn, 3.6% qoq growth. In rupee terms,
the revenue is expected to grow by 3.9% qoq to `6,153cr. EBITDA margin is
expected to decline by 134bp qoq to 20.6% due to negative impact of wage hikes
given during the quarter. PAT is expected to come in at `786cr. The company is
one of our preferred picks in the IT sector. We maintain Accumulate rating on the
stock with target price of `632.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
24,569
18.8
2,906
41.4
22.8
14.1
3.2
8.4
1.6
FY2014E
27,002
17.6
3,166
45.1
21.1
12.9
2.7
8.0
1.4
Infotech Enterprises (CMP: `191 / TP: - / Upside: -)

Infotech Enterprises is slated to announce its 2QFY2013 results today. We expect
the company to post revenues of US$87mn, up 3.4% qoq majorly led by volume
growth. In rupee terms, revenues are expected to come in at `479cr, up 4.9% qoq.
EBITDA margin is expected to decline by 20bp qoq to 18.5%. PAT is expected to
come in at `69cr. 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
1,895
18.0
201
18.1
14.5
10.6
1.5
4.3
0.8
FY2014E
2,049
17.5
217
19.5
13.6
9.8
1.3
3.6
0.6
Market Outlook
October 17, 2012
Quarterly Bloomberg Brokers Consensus Estimate

HCL Tech Ltd - Consolidated (17/10/2012)
Particulars (` cr)
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
Net sales
6,139
4,651
32.0
5,919
3.7
EBITDA
1,217
795
53.1
1,301
(6.4)
EBITDA margin (%)
19.8
17.1
Net profit
787
497
58.3
854
(7.8)
3QCY12E
3QCY11
y-o-y (%)
2QCY12
q-o-q (%)
2,495
2,283
2,919
(15)
45
690
(33)
22.0
ACC Ltd - (18/10/2012)

Particulars (` cr)
Net sales
EBITDA
461
317
EBITDA margin (%)
18.5
13.9
Net profit
283
159
78
415
(32)
3QCY12E
3QCY11
y-o-y (%)
2QCY12
q-o-q (%)
2,189
1,805
21
2,566
(15)
EBITDA
533
319
67
735
(27)
EBITDA margin (%)
24.3
17.7
Net profit
335
171
96
469
(29)
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
Net sales
2,750
2,593
2,713
EBITDA
1,428
1,465
(3)
1,429
(0)
51.9
56.5
1,393
1,345
1,581
(12)
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
23.6
Ambuja Cement Ltd - (18/10/2012)

Particulars (` cr)
Net sales
28.6
Hindustan Zinc Ltd - (18/10/2012)

Particulars (` cr)
EBITDA margin (%)

Net profit
52.7
Adani Power Ltd - (19/10/2012)

Particulars (` cr)
2QFY13E
Net sales
1,322
1,072
23
1,463
(10)
213
519
(59)
(120)
(278)
16.1
48.4
EBITDA
EBITDA margin (%)
Net profit
(268)
177
-8.2
(251)
(793)
(66)
Adani Ports & SEZ Ltd - (19/10/2012)

Particulars (` cr)
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
Net sales
701
588
19
774
(9)
EBITDA
496
411
21
632
(22)
EBITDA margin (%)
70.8
69.9
Net profit
335
273
81.7
23
418
(20)
Market Outlook
October 17, 2012
Exide Industries Ltd - (19/10/2012)

Particulars (` cr)
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
1,504
1,175
28
1,551
(3)
EBITDA
232
90
158
233
EBITDA margin (%)
15.4
7.7
Net profit
155
51
204
152
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
Net sales
6,876
5,974
15
6,652
EBITDA
2,527
2,219
14
2,368
36.8
37.1
1,750
1,514
Net sales
15.0
ITC Ltd - (19/10/2012)

Particulars (` cr)
EBITDA margin (%)

Net profit
35.6
16
1,602
Zee Entertainment Ltd - Consolidated (19/10/2012)

Particulars (` cr)
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
862
718
20
811
233
(9)
Net sales
EBITDA
213
208
EBITDA margin (%)
24.7
29.0
Net profit
164
160
157
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
Net sales
15,456
11,633
33
14,869
Net profit
3,360
2,231
51
3,072
28.7
TCS Ltd - Consolidated (19/10/2012)

Particulars (` cr)
Economic and Political News
Cabinet reshuffle likely on October 19

Food subsidy already 36% more than 2012-2013 budget estimate
Government to lift cap on food parks to attract private investors
Government to drop airport fee in New Delhi, Mumbai
Land Bill to be presented to cabinet by month-end
Corporate News
Government nominees yet to sign revised plan for MA oilfield: RIL

Jain Irrigation approves issue to raise `610cr
Maruti's Manesar plant to produce 2,000 cars a day by Nov-end
Welspun plans to buy back US$150mn convertible bonds
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
Market Outlook
October 17, 2012
Result Calendar
Date
Company
October 17, 2012
HCL Tech, CRISIL, Rallis, Infotech Enterprises
October 18, 2012
Hind. Zinc, Ambuja Cements, ACC, D B Corp, Persistent

TCS, ITC, Mundra Port, Adani Power, Petronet LNG, Exide Industries, Zee Entertainment, South Ind.Bank, Blue Star,
NIIT, Alembic Pharma, Tata Sponge
Bajaj Auto, UltraTech Cement, Indian Bank, Federal Bank, J K Lakshmi Cements, Force Motors
October 19, 2012

October 20, 2012
October 21, 2012
October 22, 2012
HDFC, Larsen & Toubro, Cairn India, Idea Cellular, Bank of Baroda, Syndicate Bank, Indiabulls Fin.
October 23, 2012
Hero Motocorp, Sterlite Inds, Lupin, Yes Bank, United Phosphorus, Bank of Maharashtra
October 24, 2012

October 25, 2012
Adani Enterp., M&M, Kotak Mah. Bank, Asian Paints, Oriental Bank, Ipca labs, Bajaj Electrical, KPIT Cummins
October 26, 2012
NTPC, ICICI Bank, GAIL, Punjab Natl.Bank, IDFC, Dabur India, IOB, United Bank, Hind. Const.
October 27, 2012
Sarda Energy
October 28, 2012
JSW Steel
October 29, 2012
Colgate, Styrolution
October 30, 2012
Maruti, Dr Reddy's, Grasim Inds, Thermax, Taj GVK
October 31, 2012
NHPC, Titan Inds., Tata Global, TVS Motor
Source: Bloomberg, Angel Research
Global economic events release calendar

Date
October 17, 2012
Country
Event Description
Unit
Period
Bloomberg Data
Last Reported
Estimated
US
Housing Starts
Thousands
Sep
750.00
770.00
US
Building permits
Thousands
Sep
801.00
810.00
UK
Jobless claims change
% Change
Sep
(15.00)
--
US
Initial Jobless claims
Thousands
Oct 13
339.00
365.00
China
Industrial Production (YoY)
% Change
Sep
8.90
9.00
China
Real GDP (YoY)
% Change
3Q
7.60
7.40
October 19, 2012
US
Millions
Sep
4.82
4.75
October 23, 2012
Euro Zone
Value
Oct A
(25.90)
--
October 24, 2012
Germany
Existing home sales

Euro-Zone Consumer
Confidence
PMI Services
Value
Oct A
49.70
--
Germany
PMI Manufacturing
US
New home sales
US
FOMC rate decision
October 25, 2012
UK
October 26, 2012

October 30, 2012
October 18, 2012
Value
Oct A
47.40
--
Thousands
Sep
373.00
381.00
Oct 24
0.25
--
GDP (YoY)
% Change
3Q A
(0.50)
--
US
GDP Qoq (Annualised)
3Q A
1.30
1.70
US
Consumer Confidence
Oct
70.30
--
India
RBI Repo rate
% Change
S.A./
1985=100
%
Oct 30
8.00
--
India
RBI Cash Reserve ratio
Oct 30
4.50
--
India
RBI Reverse Repo rate
Oct 30
7.00
--
October 31, 2012
Germany
Unemployment change (000's)
Thousands
Oct
9.00
--
November 01, 2012
UK
PMI Manufacturing
Value
Oct
48.40
--
China
PMI Manufacturing
Value
Oct
49.80
--
US
Change in Nonfarm payrolls
Thousands
Oct
114.00
--
US
Unnemployment rate
Oct
7.80
--
UK
Industrial Production (YoY)
% Change
Sep
(1.20)
--
November 02, 2012
November 06, 2012
Market Strategy
October 17, 2012
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
10.0
8.0
9.2
9.0
8.5
9.0
8.2
7.5
8.0
6.0
8.0
7.6
6.0
6.7
7.0
6.1
5.7
5.3 5.5
5.0
(%)
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
(2.8)
(4.0)
(1.8)
(6.0)
(5.0)
Mfg. PMI
60.0
Services PMI
58.0
9.5
7.7
8.0
(0.2)
Exhibit 4: Manufacturing and services PMI
12.0
9.9
(1.3)
Source: MOSPI, Angel Research
Exhibit 3: Monthly WPI inflation trends
10.0
Jan-12
Dec-11
Nov-11
1QFY13
4QFY12
3QFY12
2QFY12
1QFY12
4QFY11
3QFY11
2QFY11
1QFY11
4QFY10
3QFY10
2QFY10
1QFY10
Source: CSO, Angel Research
Oct-11
(2.0)
4QFY09
1.0
3.5
3.0
6.9
7.4
7.7
7.5
7.6
7.6
7.5
7.6
7.8
56.0
Source: MOSPI, Angel Research
Sep-12
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Exhibit 5: Exports and imports growth trends

(%)
Sep-11
Sep-12
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
48.0
Jan-12
50.0
0.0
Dec-11
2.0
Nov-11
52.0
Oct-11
4.0
Oct-11
54.0
6.0
Exhibit 6: Key policy rates
60.0
(%)
9.00
45.0
8.00
30.0
7.00
Exports yoy growth
Imports yoy growth
Repo rate
Reverse Repo rate
CRR
8.00
7.00
6.00
4.50
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
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
4.00
Sep-11
(30.0)
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
0.0
Sep-12
15.0
(15.0)
2.5
2.7
2.5
2.0
Oct-11
4.0
4.3
2.7
Sep-11
6.0
4.0
Market Outlook
October 17, 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
143
2,786
1,466
1,686
14.8
14.8
7.0
8.1
20.5
17.7
4.3
3.7
22.6
22.5
2.0
1.7
United Phosphorus
Buy
123
170
5,691
8,421
9,263
16.5
16.5
15.0
17.0
8.2
7.3
1.2
1.1
15.6
15.5
0.8
0.7
Amara Raja Batteries
Neutral
219
3,738
2,844
3,275
15.4
15.6
15.9
18.8
13.8
11.6
3.5
2.8
28.9
26.9
1.2
1.1
Apollo Tyres
Accumulate
85
99
4,279
13,412
15,041
11.3
11.0
12.1
14.2
7.0
6.0
1.3
1.1
19.6
19.2
0.5
0.4
Ashok Leyland
Buy
23
30
6,239
14,920
16,850
9.0
9.3
2.2
2.8
10.8
8.5
2.0
1.7
13.3
15.6
0.5
0.5
Automotive Axle#
Neutral
381
576
993
1,140
11.6
11.5
36.9
43.0
10.3
8.9
2.0
1.8
21.2
21.3
0.7
0.5
Bajaj Auto
Neutral
1,751
50,664
21,285
23,927
18.2
18.3
108.5
121.3
16.1
14.4
6.7
5.4
46.1
41.3
2.1
1.8
Bharat Forge
Accumulate
301
351
7,011
7,004
7,985
16.2
16.4
20.3
25.1
14.8
12.0
2.7
2.3
20.0
20.9
1.2
1.0
Bosch India*
Neutral
8,764
27,519
8,793
10,294
17.4
18.5
348.3
435.8
25.2
20.1
4.9
4.0
19.4
20.1
2.8
2.3
CEAT
Buy
119
164
406
4,989
5,634
8.7
8.5
32.7
41.1
3.6
2.9
0.5
0.5
15.8
16.9
0.3
0.2
Exide Industries
Neutral
157
13,324
5,913
6,787
16.0
17.0
7.4
9.2
21.2
17.1
3.8
3.2
19.1
20.3
1.9
1.6
FAG Bearings*
Neutral
1,792
2,978
1,505
1,768
17.5
18.0
111.2
132.7
16.1
13.5
3.3
2.7
22.8
22.2
1.7
1.4
Hero Motocorp
Accumulate
1,801
2,077
35,955
24,941
28,706
15.0
15.5
122.5
134.0
14.7
13.4
6.5
5.1
49.6
42.2
1.2
1.0
JK Tyre
Buy
110
135
453
7,517
8,329
6.1
6.3
26.2
38.5
4.2
2.9
0.5
0.5
13.4
17.2
0.3
0.3
Auto & Auto Ancillary
Mahindra and Mahindra Accumulate
826
944
50,715
37,434
42,860
11.6
11.5
50.4
56.3
16.4
14.7
3.4
2.9
22.6
21.5
1.2
1.0
Maruti
Neutral
1,367
39,484
41,796
49,350
7.6
8.6
66.6
92.6
20.5
14.8
2.3
2.1
12.0
14.8
0.7
0.6
Motherson Sumi
Neutral
155
9,121
24,285
27,317
6.7
7.2
8.1
10.6
19.3
14.7
4.1
3.3
22.9
24.7
0.5
0.5
Subros
Buy
30
34
179
1,230
1,378
8.8
8.6
4.5
5.7
6.6
5.3
0.6
0.6
9.8
11.8
0.4
0.3
Tata Motors
Buy
262
316
69,906 195,096 219,428
12.8
13.0
39.0
44.9
6.7
5.8
1.9
1.5
32.6
28.8
0.4
0.4
TVS Motor
Buy
41
49
1,926
7,611
8,443
7.9
7.9
4.7
5.4
8.6
7.5
1.5
1.3
17.9
18.1
0.2
0.2
ABB*
Sell
781
593
16,555
8,760
10,023
6.2
8.7
14.5
24.7
54.1
31.6
5.9
5.2
11.6
17.6
1.9
1.7
BGR Energy
Neutral
275
1,981
3,669
4,561
11.0
11.0
24.7
29.6
11.1
9.3
1.6
1.5
15.3
16.7
1.1
1.0
BHEL
Neutral
244
59,807
47,801
43,757
19.0
18.8
25.3
22.8
9.7
10.7
3.0
2.5
34.3
25.3
1.1
1.2
Blue Star
Neutral
208
1,867
3,047
3,328
5.4
6.9
12.5
16.2
16.6
12.8
4.0
3.3
26.1
28.2
0.6
0.5
Crompton Greaves
Accumulate
133
141
8,519
12,691
14,126
7.4
8.9
7.0
9.7
19.0
13.7
2.2
2.0
11.9
15.0
0.7
0.6
Jyoti Structures
Buy
46
54
378
2,622
2,744
10.7
10.5
9.6
12.2
4.8
3.8
0.5
0.5
10.8
12.3
0.4
0.3
KEC International
Accumulate
67
78
1,722
6,858
7,431
7.1
7.5
8.3
9.8
8.1
6.9
1.4
1.2
25.1
24.0
0.4
0.4
LMW
Neutral
2,090
2,355
2,369
2,727
11.7
11.7
143.4
166.0
14.6
12.6
2.4
2.2
17.4
18.4
0.5
0.4
Thermax
Neutral
563
6,710
5,514
5,559
8.9
10.2
26.9
30.3
21.0
18.6
3.6
3.2
18.4
18.2
1.1
1.0
Capital Goods
Market Outlook
October 17, 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
1,445
27,127
10,964
12,417
21.6
21.5
76.9
82.2
18.8
17.6
3.5
3.2
19.5
19.1
2.2
1.9
Ambuja Cements
Neutral
209
32,256
10,163
11,729
25.4
24.9
11.2
12.5
18.8
16.8
4.0
3.6
20.3
20.5
2.7
2.2
India Cements
Neutral
99
3,047
4,354
4,929
18.6
18.7
9.8
12.3
10.1
8.1
0.9
0.8
8.6
10.2
1.1
1.0
J K Lakshmi Cements
Neutral
118
1,441
1,964
2,278
19.5
20.4
16.3
17.9
7.2
6.6
1.1
0.9
14.7
14.6
0.9
1.2
Madras Cements
Neutral
186
4,420
3,608
3,928
27.6
27.0
15.7
18.3
11.8
10.2
1.9
1.6
16.9
17.0
1.9
1.6
Shree Cements^
Neutral
4,049
14,105
5,630
6,187
29.6
27.9
222.5
259.3
18.2
15.6
4.2
3.4
25.3
23.8
1.9
1.5
UltraTech Cement
Neutral
2,028
55,579
20,913
23,530
21.3
22.7
93.2
110.5
21.8
18.4
3.7
3.2
18.4
18.7
2.5
2.3
229
304
1,206
2,034
2,315
22.4
22.4
27.1
31.7
8.5
7.2
1.0
0.9
13.1
13.4
1.8
2.1
Construction
Ashoka Buildcon
Buy
Consolidated Co
Neutral
14
262
2,262
2,522
6.7
7.5
1.5
2.7
9.5
5.3
0.4
0.4
4.4
7.5
0.4
0.4
Hind. Const.
Neutral
18
1,098
4,239
4,522
9.9
11.2
(2.3)
(1.0)
(8.0)
(18.8)
1.0
1.1
(11.4)
(5.6)
1.2
1.2
IRB Infra
Accumulate
149
166
4,941
3,964
4,582
42.3
40.2
15.7
16.9
9.5
8.8
1.5
1.3
16.6
15.8
2.8
2.7
ITNL
Buy
183
232
3,546
6,840
7,767
26.4
26.1
24.4
30.3
7.5
6.0
1.1
1.0
16.0
16.2
2.7
2.9
IVRCL Infra
Accumulate
45
51
1,376
5,510
6,722
8.8
9.0
2.5
4.6
17.7
9.8
0.6
0.6
3.4
5.8
0.7
0.7
Jaiprakash Asso.
Accumulate
90
91
19,127
15,259
17,502
25.7
24.7
4.0
4.8
22.4
18.9
1.7
1.6
8.5
9.3
2.5
2.2
Larsen & Toubro
Accumulate
1,608
1,721
98,685
60,474
69,091
12.1
11.5
79.7
85.4
20.2
18.8
3.4
3.0
16.3
15.1
1.8
1.6
Madhucon Proj
Buy
35
56
256
2,206
2,502
10.7
10.7
4.6
4.7
7.5
7.4
0.4
0.4
5.2
5.0
0.7
0.7
Nagarjuna Const.
Neutral
50
1,278
5,804
6,513
8.0
8.6
3.0
3.5
16.4
14.2
0.5
0.5
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
1.0
Punj Lloyd
Neutral
52
1,732
11,892
13,116
8.9
8.9
1.7
3.1
30.7
16.9
0.6
0.6
1.9
3.4
0.6
0.5
Sadbhav Engg.
Buy
144
182
2,164
2,506
3,147
10.3
10.7
7.5
10.4
19.2
13.8
2.4
2.1
13.5
16.0
1.0
0.9
Simplex Infra
Buy
214
265
1,056
6,732
7,837
8.1
8.4
23.4
29.4
9.1
7.3
0.8
0.7
9.2
10.6
0.5
0.5
Allahabad Bank
Reduce
137
131
6,865
6,944
7,884
3.0
3.1
35.5
37.0
3.9
3.7
0.6
0.6
17.2
15.7
Andhra Bank
Reduce
Axis Bank
Buy
Bank of Baroda
Financials
107
97
5,999
4,929
5,633
3.1
3.1
23.7
24.5
4.5
4.4
0.7
0.7
16.6
15.3
1,146
1,326
47,521
15,425
18,500
3.1
3.2
115.9
137.5
9.9
8.3
1.8
1.6
19.9
20.1
Neutral
767
30,024
15,473
18,142
2.6
2.6
115.3
139.4
6.7
5.5
1.0
0.9
16.2
17.2
Bank of India
Accumulate
298
330
17,070
12,573
14,971
2.3
2.4
58.2
68.0
5.1
4.4
0.8
0.7
15.9
16.3
Bank of Maharashtra
Neutral
50
2,918
3,442
3,802
3.1
3.2
8.9
11.4
5.6
4.3
0.7
0.6
13.5
15.5
Canara Bank
Neutral
423
18,728
10,905
12,783
2.1
2.2
74.9
85.1
5.7
5.0
0.9
0.8
15.1
15.3
Central Bank
Neutral
75
5,499
7,095
8,102
2.5
2.7
15.6
21.0
4.8
3.6
0.8
0.7
12.2
14.7
Market Outlook
October 17, 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
407
447
6,036
4,886
5,669
2.1
2.2
101.3
101.8
4.0
4.0
0.7
0.6
17.0
15.1
Dena Bank
Neutral
107
3,740
3,147
3,495
2.8
2.9
24.8
24.4
4.3
4.4
0.8
0.7
18.7
15.9
Federal Bank
Neutral
470
8,043
2,593
3,009
3.2
3.2
44.9
52.5
10.5
9.0
1.3
1.2
12.8
13.5
HDFC
Neutral
743
114,432
7,340
8,805
3.5
3.5
31.5
37.8
23.6
19.7
4.7
4.2
34.8
32.2
HDFC Bank
Neutral
630
148,716
21,753
26,811
4.4
4.5
28.7
35.9
22.0
17.6
4.2
3.6
20.7
21.9
ICICI Bank
Buy
1,042
1,245
119,789
22,304
26,855
2.9
3.0
68.6
82.0
15.2
12.7
1.8
1.7
14.2
15.6
IDBI Bank
Neutral
98
12,529
7,761
9,484
1.9
2.2
17.1
22.9
5.7
4.3
0.7
0.6
11.9
14.4
Indian Bank
Reduce
185
181
7,934
6,062
6,818
3.4
3.4
40.5
41.6
4.6
4.4
0.8
0.7
18.1
16.3
IOB
Accumulate
78
87
6,229
7,343
8,391
2.5
2.5
16.0
21.3
4.9
3.7
0.6
0.5
11.3
13.6
J & K Bank
Accumulate
1,162
1,021
5,635
2,600
2,850
3.6
3.5
192.3
188.0
6.1
6.2
1.2
1.0
21.0
17.7
LIC Housing Finance
Accumulate
256
301
12,922
1,867
2,338
2.4
2.4
21.1
28.5
12.1
9.0
2.0
1.7
17.5
20.4
Oriental Bank
Neutral
291
8,498
6,278
7,125
2.7
2.8
56.7
62.6
5.1
4.7
0.7
0.6
14.1
13.9
Punjab Natl.Bank
Accumulate
805
941
27,307
19,934
22,705
3.3
3.3
147.8
166.2
5.5
4.8
1.0
0.8
17.7
17.3
South Ind.Bank
Accumulate
24
25
3,159
1,535
1,760
2.9
2.8
3.5
3.9
6.7
6.1
1.1
1.0
19.5
17.1
St Bk of India
Accumulate
2,229
2,353
149,573
63,806
73,435
3.5
3.6
225.7
258.4
9.9
8.6
1.7
1.4
17.7
17.8
Syndicate Bank
Accumulate
120
117
7,220
6,722
7,719
2.9
3.0
24.3
27.2
4.9
4.4
0.8
0.7
17.0
16.8
UCO Bank
Neutral
76
5,055
5,411
6,124
2.4
2.5
17.0
16.5
4.5
4.6
0.9
0.8
16.7
14.4
Union Bank
Accumulate
199
226
10,961
9,924
11,647
2.8
2.9
38.6
46.3
5.2
4.3
0.9
0.7
15.4
16.3
United Bank
Buy
65
78
2,363
3,572
4,041
2.8
2.9
17.2
22.1
3.8
3.0
0.5
0.5
14.2
16.2
Vijaya Bank
Neutral
57
2,812
2,490
2,881
2.1
2.2
9.2
11.4
6.2
5.0
0.8
0.7
11.5
13.0
Yes Bank
Buy
381
452
13,584
3,270
4,253
2.8
3.0
33.9
42.2
11.3
9.0
2.4
1.9
23.1
23.6
3,882
37,238
11,198
13,184
16.3
16.3
121.0
144.8
32.1
26.8
10.8
8.5
37.4
35.3
3.3
2.8
496
584
5,927
5,835
6,824
5.7
6.0
20.7
25.4
24.0
19.6
9.5
7.2
43.1
41.9
0.9
0.7
1,237
16,825
3,018
3,429
20.9
22.2
35.7
42.3
34.7
29.2
32.0
23.8
101.0
93.5
5.3
4.6
FMCG
Asian Paints
Neutral
Britannia
Buy
Colgate
Neutral
Dabur India
Neutral
135
23,486
6,124
7,030
17.0
16.8
4.5
5.2
30.2
26.0
12.4
9.9
43.2
41.5
3.7
3.1
GlaxoSmith Con*
Neutral
2,954
12,424
3,124
3,663
17.1
17.6
104.5
123.8
28.3
23.9
8.8
7.1
34.4
32.8
3.7
3.1
Godrej Consumer
Neutral
675
22,982
6,097
7,233
18.4
18.6
21.9
26.5
30.9
25.5
6.8
5.7
25.5
25.4
3.9
3.3
HUL
Neutral
574
124,148
25,350
28,974
13.9
13.9
14.3
16.5
40.3
34.9
24.0
18.5
70.9
59.8
4.4
3.8
ITC
Neutral
285
224,140
29,513
33,885
35.4
35.8
9.3
10.8
30.8
26.5
10.2
8.5
35.6
35.0
6.9
6.0
Market Outlook
October 17, 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
203
13,088
4,840
5,643
13.1
13.1
6.8
8.5
29.9
24.0
8.3
6.3
31.4
29.7
2.7
2.2
Nestle*
Neutral
4,756
45,859
8,610
10,174
20.9
21.2
114.8
139.8
41.4
34.0
25.0
17.4
71.2
60.3
5.0
4.1
Tata Global
Neutral
161
9,972
7,207
7,927
9.7
10.0
6.6
7.8
24.4
20.6
2.5
2.4
8.6
9.5
1.1
1.0
HCL Tech^
Accumulate
584
632
40,549
24,569
27,002
18.8
17.6
41.4
45.1
14.1
12.9
3.2
2.7
22.8
21.1
1.6
1.4
Hexaware*
Accumulate
113
140
3,346
1,966
2,161
22.5
21.4
11.6
12.2
9.7
9.3
2.5
2.2
26.8
23.9
1.5
1.3
Infosys
Accumulate
2,354
2,687
135,200
39,383
41,380
31.7
31.9
163.2
173.4
14.4
13.6
3.5
3.0
23.9
22.0
3.1
2.8
Infotech Enterprises
Neutral
191
2,129
1,895
2,049
18.0
17.5
18.1
19.5
10.6
9.8
1.5
1.3
14.5
13.7
0.8
0.6
KPIT Cummins
Buy
120
142
2,149
2,191
2,364
16.1
16.5
11.3
13.0
10.7
9.3
2.4
1.9
21.8
20.0
1.0
0.8
Mahindra Satyam
Neutral
109
12,816
7,628
8,062
19.9
18.4
9.7
10.0
11.2
10.9
3.1
2.4
27.7
22.2
1.3
1.1
Mindtree
Buy
677
772
2,770
2,334
2,481
19.5
17.6
70.4
77.2
9.6
8.8
2.2
1.8
23.3
20.4
0.9
0.8
Mphasis&
Neutral
401
8,424
5,700
5,993
18.0
16.9
37.0
37.3
10.8
10.8
1.6
1.4
14.3
12.6
1.0
0.9
NIIT
Accumulate
35
36
570
1,034
1,146
9.9
11.0
5.2
6.4
6.6
5.4
0.9
0.8
12.8
14.3
0.3
0.2
Persistent
Reduce
435
398
1,739
1,207
1,278
26.2
24.3
42.4
44.3
10.3
9.8
1.8
1.5
17.1
15.5
1.1
0.9
TCS
Accumulate
1,295
1,405
253,480
61,611
67,507
29.3
29.1
69.0
74.0
18.8
17.5
6.1
5.0
32.4
28.6
3.9
3.5
Tech Mahindra
Accumulate
945
1,046
12,059
6,603
7,196
18.2
17.1
92.7
99.6
10.2
9.5
2.4
1.9
23.6
20.5
1.9
1.7
Wipro
Accumulate
352
421
86,687
43,800
48,332
19.5
19.3
25.6
28.1
13.8
12.6
2.6
2.3
18.9
17.9
1.8
1.5
D B Corp
Buy
214
236
3,921
1,604
1,786
22.3
23.8
11.2
13.7
19.2
15.7
3.6
3.1
20.3
21.4
2.2
2.0
HT Media
Buy
96
113
2,267
2,111
2,272
15.0
15.2
7.4
8.3
13.1
11.7
1.4
1.3
11.3
11.4
0.7
0.6
Jagran Prakashan
Buy
96
112
3,025
1,488
1,664
22.7
22.8
6.2
7.1
15.4
13.4
3.7
3.3
25.2
26.3
2.1
1.8
PVR
Neutral
223
579
625
732
17.4
17.1
13.3
15.6
16.8
14.3
1.8
1.6
13.2
13.8
1.2
1.0
Sun TV Network
Neutral
362
14,280
1,981
2,239
77.0
76.7
18.6
21.3
19.5
17.0
4.9
4.3
27.1
27.5
6.4
5.5
Bhushan Steel
Neutral
501
10,629
11,979
14,584
31.6
31.0
49.2
61.4
10.2
8.2
1.3
1.2
14.1
15.2
2.9
2.4
Coal India
Accumulate
354
385
223,536
69,808
75,550
27.4
27.4
26.0
28.3
13.6
12.5
3.9
3.2
32.5
28.1
2.3
2.0
Electrosteel Castings
Accumulate
22
23
775
1,984
2,074
11.2
12.6
2.5
2.9
9.1
7.8
0.4
0.2
5.1
5.7
0.5
0.5
Hind. Zinc
Accumulate
133
144
56,007
12,446
13,538
52.3
52.9
14.3
15.5
9.3
8.5
1.8
1.5
20.5
18.9
2.7
2.1
Hindalco
Neutral
117
22,420
84,855
92,446
8.7
9.3
13.2
16.2
8.9
7.2
0.7
0.6
7.8
8.9
0.7
0.6
JSW Steel
Neutral
747
16,664
38,740
41,459
17.3
17.0
79.9
89.4
9.4
8.4
0.9
0.9
10.4
10.6
0.9
0.8
MOIL
Accumulate
250
271
4,204
918
993
50.7
50.9
24.5
26.1
10.2
9.6
1.6
1.4
16.0
15.5
2.3
2.0
Monnet Ispat
Buy
293
379
1,884
2,511
3,303
23.8
26.0
46.3
57.3
6.3
5.1
0.7
0.6
12.4
13.7
1.7
1.2
IT
Media
Metals & Mining
Market Outlook
October 17, 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
Reduce
NMDC
Accumulate
50
48
12,757
7,401
7,841
16.7
19.2
3.4
4.1
14.5
12.1
1.0
1.0
7.4
8.4
1.3
1.2
188
214
74,477
12,934
14,266
79.4
80.1
21.1
23.4
8.9
8.0
2.4
1.9
29.6
26.5
4.1
3.4
SAIL
Sesa Goa
Neutral
84
34,634
47,252
60,351
14.2
14.8
9.6
11.7
8.8
7.2
0.8
0.7
9.4
10.6
1.2
1.0
Neutral
169
14,644
7,704
8,034
33.6
34.6
42.0
43.1
4.0
3.9
0.8
0.7
22.3
19.2
2.2
2.1
Sterlite Inds
Neutral
100
33,438
41,680
45,382
24.2
23.2
16.3
16.9
6.1
5.9
0.7
0.6
11.3
10.7
0.8
0.7
Tata Steel
Buy
409
481
39,698 145,799 150,431
10.3
11.2
48.6
63.3
8.4
6.5
0.9
0.8
10.5
12.4
0.5
0.5
Sarda
Accumulate
130
148
465
1,251
1,321
22.7
23.4
33.0
37.1
3.9
3.5
0.6
0.5
15.1
14.8
0.8
0.7
Prakash Industries
Godawari Power and
Ispat
Oil & Gas
Buy
52
73
704
2,694
2,906
14.6
16.6
16.4
20.8
3.2
2.5
0.3
0.3
11.4
12.8
0.5
0.4
Buy
119
161
379
2,341
2,425
15.6
17.3
33.3
43.2
3.6
2.8
0.4
0.4
13.2
14.4
0.5
0.5
Cairn India
Accumulate
335
380
63,885
16,605
17,258
75.4
71.7
57.0
54.9
5.9
6.1
1.1
0.9
20.2
16.3
2.8
2.2
GAIL
Neutral
379
48,044
50,176
55,815
15.5
15.8
35.4
36.5
10.7
10.4
1.9
1.7
18.9
17.0
0.7
0.5
ONGC
Accumulate
279
312
238,655 147,139 154,821
33.9
33.7
30.7
32.3
9.1
8.6
1.6
1.4
18.3
17.2
1.4
1.2
Reliance Industries
Neutral
813
266,303 362,700 380,031
7.9
8.0
61.5
64.3
13.2
12.7
1.3
1.2
10.3
9.9
0.7
0.7
Gujarat Gas*
Neutral
299
3,819
11.5
11.3
19.2
22.1
15.6
13.5
4.1
3.7
28.7
29.0
1.3
1.0
Indraprastha Gas
Neutral
255
3,574
3,040
3,135
24.3
26.7
24.8
27.9
10.3
9.2
2.4
2.0
25.5
23.6
1.3
1.1
Petronet LNG
Gujarat State Petronet
Ltd.
Pharmaceuticals
Accumulate
164
176
12,285
29,145
33,736
6.6
6.6
14.2
16.0
11.5
10.2
2.8
2.3
26.9
24.4
0.4
0.4
82
4,603
1,041
939
91.8
91.9
8.5
7.4
9.6
11.1
1.6
1.5
18.1
14.0
5.2
5.8
Alembic Pharma
Buy
Aurobindo Pharma
Accumulate
Aventis*
Neutral
Cadila Healthcare
Accumulate
Cipla
Neutral
Dr Reddy's
Accumulate
Dishman Pharma
Neutral
3,836
3,228
69
91
1,308
1,624
1,855
14.2
15.6
6.6
9.1
10.5
7.6
2.6
2.0
27.9
29.9
1.0
0.8
155
156
4,505
5,243
5,767
14.6
14.6
11.8
12.6
13.1
12.3
1.6
1.4
17.9
16.4
1.3
1.1
2,252
5,187
1,482
1,682
15.5
15.5
95.1
104.4
23.7
21.6
4.2
3.3
18.6
17.0
3.5
3.0
850
953
17,397
6,148
7,386
18.6
19.6
36.0
46.1
23.6
18.4
5.6
4.5
25.8
26.8
3.1
2.6
363
29,166
8,031
9,130
23.4
22.4
18.4
20.0
19.7
18.2
3.3
2.8
17.8
16.6
3.6
3.1
1,691
1,859
28,714
10,696
11,662
20.7
21.0
83.7
92.9
20.2
18.2
4.2
3.5
22.4
20.8
2.9
2.6
Neutral
99
801
1,280
1,536
17.8
17.8
9.2
11.3
10.8
8.8
0.8
0.8
7.7
8.5
1.3
1.1
GSK Pharma*
Neutral
1,986
16,819
2,651
2,993
31.7
31.2
76.0
82.4
26.1
24.1
7.6
6.7
20.1
26.3
5.5
4.8
Indoco Remedies
Buy
68
92
623
685
837
15.2
15.2
7.4
8.9
9.1
7.6
1.4
1.2
16.4
17.0
1.1
0.9
Ipca labs
Neutral
448
5,655
2,850
3,474
20.7
20.7
29.2
36.6
15.4
12.3
3.6
2.9
26.1
26.1
2.3
1.9
Lupin
Accumulate
555
647
24,801
8,426
10,082
19.7
20.0
26.3
31.3
21.1
17.7
4.9
4.0
26.0
24.7
3.2
2.6
Orchid Chemicals
Neutral
112
791
1,667
1,835
13.9
13.9
11.4
13.3
9.9
8.4
0.6
0.6
6.6
7.3
0.9
0.8
Market Outlook
October 17, 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
Pharmaceuticals
Ranbaxy*
Neutral
541
22,861
12,046
11,980
18.0
15.8
31.3
29.8
17.3
18.2
5.9
4.7
39.1
28.9
1.9
1.8
Sun Pharma
Neutral
718
74,261
9,752
12,134
41.6
41.6
26.0
28.2
27.6
25.5
5.2
4.4
20.3
18.8
6.6
5.1
CESC
Neutral
317
3,962
5,218
5,644
24.2
23.8
44.6
47.6
7.1
6.7
0.7
0.7
11.0
10.6
1.6
1.6
GIPCL
Accumulate
NTPC
Neutral
Power
70
77
1,054
1,557
1,573
29.3
28.7
10.8
11.0
6.5
6.3
0.7
0.6
10.8
10.2
1.2
1.0
168
138,565
74,111
85,789
22.7
23.1
12.1
13.7
13.9
12.2
1.7
1.5
12.6
13.2
2.5
2.3
Real Estate
Anant Raj
Accumulate
77
78
2,262
657
875
52.0
56.1
8.4
12.7
9.1
6.0
0.6
0.5
6.3
8.9
4.5
3.4
DLF
Neutral
208
35,330
9,878
12,033
44.7
46.1
9.6
13.4
21.7
15.5
1.4
1.3
6.4
8.7
6.5
5.4
HDIL
Buy
101
115
4,217
2,441
3,344
55.1
48.2
22.7
26.6
4.4
3.8
0.4
0.3
8.8
9.4
3.5
2.7
MLIFE
Neutral
404
1,648
813
901
26.2
26.6
32.0
37.1
12.6
10.9
1.3
1.2
10.4
11.0
2.3
2.0
Bharti Airtel
Neutral
268
101,641
79,147
86,745
31.1
32.5
9.9
15.1
27.0
17.8
1.9
1.7
7.0
9.7
2.0
1.7
Idea Cellular
Neutral
81
26,851
22,582
24,684
26.4
26.9
3.3
4.7
24.4
17.2
1.9
1.7
7.8
9.9
1.7
1.5
Rcom
Neutral
59
12,147
20,650
20,935
32.3
33.0
4.2
5.8
13.9
10.2
0.3
0.3
2.3
3.1
2.3
2.1
Abbott India
Neutral
1,459
3,100
1,602
1,833
10.4
11.8
54.7
71.7
26.7
20.3
5.0
4.3
20.0
22.7
1.9
1.6
Bajaj Electricals
Buy
223
228
2,225
3,670
4,290
7.6
8.8
15.0
23.0
14.9
9.7
2.7
2.2
18.6
22.4
0.5
0.5
Cera Sanitaryware
Buy
376
388
476
396
470
16.7
16.6
31.0
35.0
12.1
10.8
2.8
2.2
24.8
23.0
1.1
1.0
Cravatex
Buy
465
682
120
289
340
5.2
5.9
41.0
57.0
11.3
8.2
2.9
2.2
25.2
26.5
0.5
0.4
CRISIL
Neutral
950
6,666
982
1,136
34.3
34.3
34.3
40.0
27.7
23.8
12.5
10.0
50.9
46.9
6.5
5.4
Finolex Cables
Buy
44
61
666
2,334
2,687
6.2
6.5
8.0
10.0
5.4
4.4
0.7
0.6
13.0
14.9
0.2
0.2
Force Motors
Buy
420
591
548
2,214
2,765
4.5
5.4
39.0
74.0
10.8
5.7
0.5
0.4
4.4
7.6
0.1
0.1
Goodyear India
Neutral
319
736
1,543
1,654
6.5
7.3
24.8
31.1
12.9
10.3
2.1
1.8
17.1
19.0
0.3
0.2
Disa India
Buy
2,982
3,353
450
176
203
22.7
22.6
182.5
209.6
16.3
14.2
8.5
6.7
51.8
47.1
2.2
1.8
Greenply Industries
Buy
232
309
561
1,925
2,235
10.6
10.9
29.6
44.1
7.9
5.3
1.3
1.0
16.8
21.0
0.5
0.4
Hitachi
Neutral
136
311
868
977
3.9
6.6
2.7
10.9
49.4
12.5
1.8
1.6
3.7
13.6
0.4
0.4
Honeywell Automation* Neutral
2,599
2,298
1,847
2,162
4.3
7.3
69.0
135.0
37.7
19.3
3.4
2.9
9.3
16.3
1.3
1.1
1,113
1,056
1,081
8.1
10.6
34.0
47.0
18.6
13.5
2.6
2.2
14.7
17.5
1.1
1.0
Telecom
zOthers
Styrolution ABS India*
Buy
633
744
ITD Cementation
Neutral
238
274
1,451
1,669
12.3
12.4
32.4
41.5
7.3
5.7
0.7
0.6
9.4
10.9
0.6
0.6
Jyothy Laboratories
Neutral
166
2,681
1,248
1,468
9.8
10.4
5.9
7.2
28.0
23.2
4.0
3.7
15.0
16.6
2.5
2.0
MCX
Accumulate
1,387
1,440
7,071
553
624
65.3
66.3
62.5
72.0
22.2
19.3
6.1
5.3
27.5
27.4
8.9
7.4
MRF
Buy
10,176
12,884
4,316
11,804
12,727
10.4
10.5 1,289.9 1,431.3
7.9
7.1
1.5
1.3
21.3
19.4
0.5
0.5
Market Outlook
October 17, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
3,472
726
821
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
3,872
887
1,108
18.3
18.6
95.0
120.9
36.6
28.7
19.1
15.5
57.4
59.5
4.0
3.2
871
1,019
1,208
12.3
13.0
51.0
68.4
14.2
10.6
3.8
2.8
30.3
30.2
1.0
0.8
zOthers
Page Industries
Neutral
Relaxo Footwears
Accumulate
Sintex Industries
Buy
73
79
1,981
4,751
5,189
16.3
16.6
13.6
15.8
5.3
4.6
0.7
0.6
12.9
13.2
0.8
0.6
Siyaram Silk Mills
Buy
300
392
281
1,042
1,173
12.4
12.5
66.3
78.5
4.5
3.8
0.9
0.7
21.1
20.8
0.5
0.4
S. Kumars Nationwide
Buy
19
24
550
7,134
7,985
19.7
19.4
12.2
14.1
1.5
1.3
0.2
0.1
11.3
11.5
0.6
0.6
SpiceJet
Buy
36
43
1,729
5,720
6,599
5.3
6.8
3.6
5.4
9.9
6.7
14.3
4.6
0.4
0.4
TAJ GVK
Buy
75
108
468
300
319
35.8
36.2
7.9
9.1
9.5
8.2
1.3
1.1
13.9
14.4
1.8
1.5
Tata Sponge Iron
Buy
327
377
503
787
837
16.2
17.5
58.5
66.9
5.6
4.9
0.8
0.7
14.9
15.1
0.3
0.2
TVS Srichakra
Accumulate
312
335
239
1,476
1,643
7.0
8.2
32.6
55.9
9.6
5.6
1.5
1.3
16.8
24.8
0.4
0.3
United Spirits
Neutral
1,275
16,682
10,289
11,421
13.5
14.3
31.0
42.9
41.1
29.7
3.2
2.9
8.1
10.3
2.2
2.0
Vesuvius India
Neutral
356
722
560
611
16.1
17.0
24.7
28.8
14.4
12.4
2.2
1.9
15.8
16.2
1.1
1.0
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 16, 2012
Market Outlook
October 17, 2012

Market Outlook Market Outlook: Dealer's Diary

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Market Outlook

October 17, 2012

(0.7) (135.9) 18,578

(0.8) (109.0) 13,027

(1.9) (200.8) 10,410

OIL & GAS

Maruti Suzuki launches Alto 800 at `2.44lakhs

FII Derivatives (October 16, 2012)

Net Inflows (October 15, 2012)

Refer detailed news analysis on the following page

Maruti Suzuki launches Alto 800 at `2.44lakhs

Note: * computed on TTM basis

MindTree (CMP: `677 / TP: Under review)

Infotech Enterprises (CMP: `191 / TP: - / Upside: -)

Quarterly Bloomberg Brokers Consensus Estimate

EBITDA margin (%)

ACC Ltd - (18/10/2012)

EBITDA margin (%)

EBITDA margin (%)

Ambuja Cement Ltd - (18/10/2012)

Hindustan Zinc Ltd - (18/10/2012)

EBITDA margin (%)

Adani Power Ltd - (19/10/2012)

Adani Ports & SEZ Ltd - (19/10/2012)

EBITDA margin (%)

Exide Industries Ltd - (19/10/2012)

EBITDA margin (%)

ITC Ltd - (19/10/2012)

EBITDA margin (%)

Zee Entertainment Ltd - Consolidated (19/10/2012)

EBITDA margin (%)

TCS Ltd - Consolidated (19/10/2012)

Economic and Political News

Cabinet reshuffle likely on October 19

Government nominees yet to sign revised plan for MA oilfield: RIL

October 17, 2012

HCL Tech, CRISIL, Rallis, Infotech Enterprises

October 18, 2012

Hind. Zinc, Ambuja Cements, ACC, D B Corp, Persistent

October 19, 2012

October 23, 2012

October 24, 2012

October 26, 2012

October 27, 2012

October 28, 2012

October 29, 2012

October 30, 2012

Maruti, Dr Reddy's, Grasim Inds, Thermax, Taj GVK

October 31, 2012

NHPC, Titan Inds., Tata Global, TVS Motor

Source: Bloomberg, Angel Research

Global economic events release calendar

October 17, 2012

Jobless claims change

Initial Jobless claims

Industrial Production (YoY)

Real GDP (YoY)