Market Outlook Market Outlook: Dealer's Diary

Market Outlook
October 18, 2012
Dealers Diary
The Indian markets are expected to open in the green, tracking positive opening in
most of the Asian markets after Chinese economic growth data met economist
expectations (7.4%), and the countrys September data (September retail sales
growth 14.2%) showed some improvement.
Domestic Indices
Chg (%)
(Pts)
(Close)
BSE Sensex
0.2
33.1 18,611
Nifty
0.2
12.3
5,660
(0.0)
(3.0)
6,630
MID CAP
SMALL CAP
0.3
21.3
7,132
The US markets closed higher yesterday, while buying interest was relatively
subdued. Upbeat housing data helped to push the markets higher, offsetting
disappointing results from technology bellwethers. A report from the Commerce
Department showed a substantial increase in housing starts in the month of
September to 872,000 (estimate 765,000) from 758,000 in August.
BSE HC
0.4
30.4
7,579
BSE PSU
(0.0)
(2.7)
7,352
BANKEX
0.1
9.6 13,036
AUTO
0.5
50.6 10,200
METAL
(0.2)
(19.6) 10,391
Meanwhile the Indian markets eked out modest gains yesterday, helped by firm
Asian and European cues after Moody's Investors Service left its Spanish sovereign
rating unchanged at investment grade and German Chancellor Angela Merkel
underlined her support for Greece to remain in the Eurozone.
OIL & GAS
(0.5)
(44.8)
8,479
BSE IT
(0.1)
(5.7)
5,671
Chg (%)
(Pts)
(Close)
Dow Jones
0.0
Markets Today
NASDAQ
0.1
3.0
3,104
FTSE
0.7
40.4
5,911
Nikkei
1.2
105.2
8,807
1.0
209.6 21,417
The trend deciding level for the day is 18,617 / 5,660 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 18,699 18,787 / 5,685 5,710 levels. However, if NIFTY trades below
18,617 / 5,660 levels for the first half-an-hour of trade then it may correct up to
18,529 18,447 / 5,635 5,609 levels.
Indices
S2
S1
PIVOT
R1
R2
SENSEX
18,447
18,529
18,617
18,699
18,787
NIFTY
5,609
5,635
5,660
5,685
5,710
News Analysis
Telecom Commission recommends refarming of the entire spectrum in

900Mhz band
MM launches Rexton at `17.7lakhs
ACC, Ambuja Cements to pay 2% of sales as royalty to Holcim
HMCL to launch its indigenous product in FY2014
TDSAT rejects MTNL, BSNL case on RCom
Force Motors launches Traveller 26
2QFY2013 Result Review: HCL Technologies, Rallis India, Infotech Enterprises
2QFY2013 Result Preview: Hindustan Zinc, Ambuja Cements, ACC, DB Corp,
Persistent
Refer detailed news analysis on the following page
Net Inflows (October 16, 2012)

` cr
Purch
Sales
FII
2,031
571
MFs
Net
MTD
YTD
2,119
(88)
21,024
65,584
336
235
(3,405)
(10,110)
FII Derivatives (October 17, 2012)

` cr
Purch
Sales
Net
Open Interest
Index Futures
955
758
197
14,811
Stock Futures
1,867
1,830
37
30,570
Gainers / Losers
Gainers
Company
Losers
Price (`)
chg (%)
693
4.8
Jain Irrigation
Dish TV India
80
4.7
IRB Infra
143
(4.0)
Reliance Comm
61
3.8
DLF
201
(3.4)
572
3.0
Ambuja Cements
203
(3.0)
2,270
2.7
JSW Steel
727
(2.7)
Torrent Pharma
Lupin
Eicher Motors
www.angelbroking.com
Company
Price (`)
chg (%)
72
(4.2)
Global Indices
Hang Seng
Straits Times
Shanghai Com
Indian ADRs
INFY
5.2 13,557
(0.0)
(1.1)
3,046
0.3
6.8
2,106
Chg (%)
(Pts)
(Close)
0.0
0.0
$44.6
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
1,329
659
Declines
1,543
827
131
90
Unchanged
Volumes (` cr)
BSE
2,067
NSE
10,452
Market Outlook
October 18, 2012
Telecom Commission recommends refarming of the entire

spectrum in 900Mhz band
The Telecom Commission has recommended that mobile phone carriers give up
all their airwave holding in the superior 900MHz band at the time of their permit
renewals, a widely opposed move by the industry that it says will cost about
US$24bn more in capital outlay. The Telecom Commission has gone in favor of
complete refarming at the time of renewal. This decision has to be endorsed by the
ministerial panel that will meet today but as far as the government or DoT is
concerned, they are clear that the entire spectrum has to be market priced and all
telecom companies will have to pay for it. This would mean the carriers will have
to buy the replacement airwaves in an auction, and also have to build more
mobile masts and replace some of the existing gears to continue services. Market
leaders Bharti Airtel and Vodafone will be hit the most by the proposed refarming
or substituting of their more efficient 900MHz band airwaves with inferior quality
1800Mhz band airwaves starting in November 2014. This move is definitely
negative for all the telecom players which already have highly leveraged balance
sheets due to 3G auctions and faces issues of one-time spectrum fee and 2G
auctions. We continue to remain Neutral on telecom sector.
MM launches Rexton at `17.7lakhs

Mahindra and Mahindra (MM) launched the Rexton, the high-end sports utility
vehicle (SUV) under the SsangYong banner, at a starting price of `17.7 lakh for
the manual transmission version and `19.7 lakh for the automatic transmission
version (ex-showroom Mumbai). The Rexton is the first product from the
SsangYong portfolio to be launched in India since MM acquired the company in
March 2011. The new SUV will be manufactured and assembled at the companys
Chakan plant by sourcing components from SsangYong Korea and from India.
The Rexton is powered by a 2.7 litre diesel engine which delivers 162bhp power
and 340Nm torque. It boasts a mileage of 12.4kmpl (ARAI certified). The Rexton
will be competing with the likes of Fortuner, Pajero Sport, Endeavour and Yeti.
While the size of the high-end (greater than `15lakhs) SUV market is currently
small (~5% of the UV market) we believe that with the the launch of the Rexton,
MM will gain a foothold in the segment where it is not present currently. This will
enable MM to further consolidate its position in the utility vehicle segment
amid rising competition. At `826, the stock is trading at 14.7x FY2014E earnings.
We maintain our Accumulate rating on the stock with sum of the parts (SOTP)
based target price of `944.
ACC, Ambuja Cements to pay 2% of sales as royalty to

Holcim
As per media reports ACC and Ambuja Cements (Ambuja) may have to pay up to
2% of their sales as royalty to parent company Holcim. The media reports say top
Holcim officials have confirmed the possibility of the 2% royalty payment. The
royalty is likely to be charged from next quarter onwards. While both the Indian
companies have been paying up to 0.5% of their annual sales to Holcim Support
and Holcim Services Group as a fee for access to technology and support, other
Holcim group companies like Holcim Indonesia, Holcim Philippines and Siam City
are charged nearly 2% on their annual sales for similar services. Official
Market Outlook
October 18, 2012
spokespersons of ACC and Ambuja have denied any such proposal. If the
proposal goes through then ACC and Ambujas CY2013E EPS would get reduced
by 8% and 6% respectively. We remain Neutral on ACC and Ambuja.
HMCL to launch its indigenous product in FY2014

Hero MotoCorp (HMCL) has announced that it will launch the first product with its
own technology in FY2014. Post the break-up with Honda, HMCL has been very
aggressive in developing its research and development (R&D) team and has also
entered into strategic tie-ups with global majors. HMCL intends to spend `400cr to
set up a state-of-the-art integrated R&D centre in Jaipur by 2QFY2014.The
company has also teamed up with technology partners like Erik Buell Racing (EBR,
presence in the high-end motorcycle segment) and Austrian engine developer AVL.
While the development is certainly positive for HMCL; we shall wait for more clarity
from the management on this front. The management has not yet given any
indications of the segment they are planning to launch the new product. At `1,805
the stock is trading attractively at 13.5x FY2014E earnings. We maintain our
Accumulate rating on the stock with target price of `2,077.
TDSAT rejects MTNL, BSNL case on RCom

The TDSAT, yesterday, ruled in favour of Reliance Communications (RCom) and
set aside claims by public sector BSNL and MTNL against the home country direct
services offered by the company in the past. RCom said that the TDSAT has
ordered a refund of the fines levied on it by the two telcos - adding that the refund
could be around `500cr. The government, earlier, had barred this service after
BSNL and MTNL said that masked caller identities had led to massive interconnect
revenue losses. The issue relates to a calling card service from domains like the US
where people were using RComs calling card home country direct service to call
home to India. We continue to remain Neutral on RCom.
Force Motors launches Traveller 26

Force Motors (FML), a manufacturer of commercial and utility vehicles, launched
its latest offering, the worlds only 26-seater monocoque panel van, Traveller 26
on Tuesday, October 16, 2012. The market size of this segment is ~25,000 units
and FML plans to sell 4,000-4,500 units in its first year, thereby aiming for a 20%
market share. Traveller 26 will be competing with Tatas Airbus and Mahindras
Navistar Mini bus range. Traveller 26 is a unique combination of outstanding
performance, excellent fuel economy, unmatched strength, total safety and
maximum comfort, making it an ideal choice for corporates, fleet owners, tour and
travel operators, hospitality industry and school bus operators.
The standard version of Traveller 26 is priced ex-showroom at `10.87 lakhs,
school bus version at `11.16 lakhs and Deluxe version at `13.87 lakhs. The
product will be available through 27 dealers in Maharashtra and Goa and FML
looks forward to export it post six months mainly to Sri Lanka, Bangladesh and
Africa. The product is rolled out from FMLs Pithampur unit which is expected to
produce up to 10,000 units in the first phase while the second phase is to
commission after a year.
FML is planning to roll out its premium multi-purpose vehicle (MUV) by end of
FY2013 and to launch a nine-seater van in utility vehicle segment next year. The
company is planning to incur a capex of `500cr for this MUV which will be made
Market Outlook
October 18, 2012
under license from Daimler AG. We maintain our Buy recommendation on the
stock with a target price of `591 based on target PE of 8x for FY2014E.
Result Review
HCL Technologies (CMP: `580 / TP: Under review)
For 1QFY2013, HCL Tech reported a yet another strong set of results. The USD
revenue came in at US$1,114mn, up 3.2% qoq, on the back of a 2.5% qoq
volume growth in the core software services business and a whopping 10.3% qoq
USD revenue growth in constant currency (CC) terms in the infrastructure services
business. Overall, the volume growth of the company was healthy at 4.5% qoq.
The EBITDA margin and the EBIT margin remained almost stable at 22.2% and
19.4%, despite having 80bp qoq wage hike impact which was a positive surprise.
The negative impact of wage hike was absorbed by an 18bp qoq gain from G&A
leverage and 72bp qoq gain from operating efficiency and improvement in
utilization. The PAT came in at `885cr, up 3.6% qoq.
HCL Tech, with end-to-end IT capabilities and a strong client mining ability, is
clearly emerging as a front runner and outperforming many of its peer companies.
HCL Tech is one of our preferred picks in the tier-1 IT pack. HCL Tech is strongly
positioned in the EAS and IMS verticals, which places it well for short-term as well
as long-term growth. HCL Tech has displayed an industry-leading growth
trajectory and is clearly proving out to be one of the major beneficiaries in the
vendor consolidation exercise going on in the industry. We continue to be positive
on the stock while the target price is 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
24,569
18.8
2,906
41.4
22.8
14.0
3.2
8.4
1.6
FY2014E
27,002
17.6
3,166
45.1
21.1
12.9
2.7
7.9
1.4
Rallis India (CMP 142 / TP: - / Upside: -)

For 2QFY2013, Rallis reported net sales and net profit at `480.6cr and `61.5cr
respectively, a rise of 11.2% and 5.2% respectively. The consolidated EBITDA
margin declined to 19.1% vs 22.5% in 2QFY2012. This was a huge improvement
on a qoq basis, wherein the margins came in at 10.2%. This along with the higher
interest expenditure which rose by 21.3% yoy, lead the net profit to grow only by
5.2% yoy. While the performance of the company has improved, we maintain a
Neutral stance on the stock on account of valuations.

Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
1,466
14.8
135
7.0
22.6
20.3
4.3
12.3
1.8
FY2014E
1,686
14.8
157
8.1
22.5
17.5
3.7
10.5
1.6
Infotech Enterprises (CMP: `195 / TP: - / Upside: -)
Market Outlook
October 18, 2012
For 2QFY2013, Infotech Enterprises (Infotech) reported a revenue of US$87.2mn,

up 3.5% qoq, on the back of a 3.9% qoq volume growth and 0.3% reduction in
price realization. In INR terms, the revenue came in at `477cr, up 4.5% qoq, aided
by 0.9% qoq growth due to INR depreciation. During the quarter, the UT&C
verticals USD revenue increased by 6.1% qoq to US$28.3mn and ENGG verticals
revenue grew by 3.5% qoq to US$59.7mn.
The EBITDA and EBIT margins of Infotech remained almost flat qoq at 18.7% and
15.7%, respectively, as gains from volume and INR depreciation were absorbed by
headwinds from higher onsite and some one-time costs. The PAT came in at
`50cr, down 24.4% qoq, impacted by a loss of `4cr on the other income front.
Infotech added 17 new customers during the quarter eight in UT&C and nine in
the ENGG vertical. The management indicated that the company is expected to
grow 14% plus in terms of USD revenue during FY2013 in constant currency
terms. The stock is currently under review and we will be releasing a detailed result
update on it shortly.
Y/E
March
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
1,895
18.0
201
18.1
14.5
10.8
1.6
4.4
0.8
FY2014E
2,049
17.5
217
19.5
13.6
10.0
1.4
3.8
0.7
Result Preview
Hindustan Zinc (CMP: `135 / TP: `144 / Upside: 7%)
Hindustan Zinc is slated to announce its 2QFY2013 results today. The companys
top-line is expected to grow by 5.4% yoy to `2,733cr mainly on account of higher
volumes although they would be partially offset by lower realizations of zinc and
lead. The EBITDA margin is expected to contract by 580bp to 50.7% on account of
decrease in realizations. The companys bottom-line is expected to decrease by
1.6% yoy to `1,347cr. We maintain Accumulate on the stock with a target price of
`144.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
12,446
52.3
6,027
14.3
20.5
9.5
1.8
5.2
2.7
FY2014E
13,538
52.9
6,568
15.5
18.9
8.7
1.5
4.0
2.1
Ambuja Cements (CMP: `203/TP: - /Upside: -)

Ambuja Cements (Ambuja) would be declaring its 3QCY2012 results today. We
expect Ambuja to post a 17.6% yoy growth in the top-line to `2,123cr, aided by
better realization. However the cement sales volume is expected to be marginally
lower on a yoy basis. The OPM is expected to increase by 573bp yoy to 23.4%.
The bottom-line is expected to increase by 79.1% yoy to `307cr. We remain
Neutral on Ambuja.
Market Outlook
October 18, 2012
Y/E
Sales
OPM
PAT
EPS
RoE
P/E
Dec
(` cr)
(%)
(` cr)
(`)
(%)
(x)
CY2012E 10,074
25.4 1,712
11.2
20.3
CY2013E 11,619
24.9 1,915
12.5
20.5
P/BV EV/EBITDA EV/Tonne*

(x)
(x)
(US $)
18.2
3.9
10.6
181
16.3
3.5
8.9
Note: Computed on TTM basis
ACC (CMP: `1,428 /TP: - / Upside: -)

ACC is expected to declare its 3QCY2012 results today. We expect ACC to post
an 11.7% yoy growth in its top-line to `2,401cr, aided by better realization.
However the cement sales volume is expected to be lower on a yoy basis. The
OPM is expected to increase by 443bp yoy to 19.3%. The bottom-line is expected
to increase by 37.2% yoy to `230cr. We remain Neutral on ACC.
Y/E
Sales
Dec
(` cr)
OPM
PAT
(%)
EPS
RoE
P/E
P/BV EV/EBITDA EV/Tonne*
(` cr)
(`)
(%)
(x)
(x)
(x)
(US $)
CY2012E 10,802
21.6 1,445
76.9
19.4
18.6
3.5
10.1
138
CY2013E 12,256
21.5 1,546
82.2
19.1
17.4
3.2
8.5
Note: * computed on TTM basis
DB Corp (CMP: `219 / TP: `236 / Upside: 8%)

DB Corp is slated to announce its 2QFY2013 results today. Its top-line is expected
to grow by 9% yoy to `386cr with the advertising revenue growth expected to be
sluggish due to a high base of 2QFY2012. The OPM is expected to remain flat at
22.3%. Consequently, the net profit is expected to rise by 17% yoy to `47cr. At the
current market price, DB Corp is trading at 16x FY2014E consolidated EPS of
`13.6. We recommend Accumulate 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
1,604
22.3
205
11.2
20.3
19.6
3.7
10.7
2.4
FY2014E
1,786
23.8
250
13.6
21.4
16.0
3.2
8.8
2.1
Persistent (CMP: `431 / TP: - / Upside: -)

Persistent Systems is slated to announce its 2QFY2013 results today. We expect the
company to post a revenue of US$55.5mn, up 1.1% qoq. In rupee terms, the
revenue is expected to come in at `305cr, up 1.5% qoq. The EBITDA margin is
expected to remain almost flat qoq at 26.8%. The PAT is expected to come in at
`40cr. We maintain our Neutral view on the stock.
Y/E
March
Sales
OPM
PAT EPS
(` cr)
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
(` cr)
(%)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
1,207
26.2
170 42.4
17.1
10.2
1.7
4.1
1.1
FY2014E
1,278
24.3
177 44.2
15.5
9.8
1.5
3.9
1.0
Market Outlook
October 18, 2012
Quarterly Bloomberg Brokers Consensus Estimate

ACC (18/10/2012)
Particulars (` cr)
3QCY12E
3QCY11
y-o-y (%)
2QCY12
q-o-q (%)
2,491
2,283
2,919
(15)
EBITDA
462
317
46
690
(33)
EBITDA margin (%)
18.5
13.9
Net profit
282
159
77
415
(32)
3QCY12E
3QCY11
y-o-y (%)
2QCY12
q-o-q (%)
2,188
1,805
21
2,566
(15)
67
735
(28)
Net sales
23.6
Ambuja Cement (18/10/2012)

Particulars (` cr)
Net sales
EBITDA
532
319
EBITDA margin (%)
24.3
17.7
Net profit
336
171
96
469
(28)
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
Net sales
2,749
2,593
2,713
EBITDA
1,428
1,465
(3)
1,429
(0)
51.9
56.5
1,391
1,345
1,581
(12)
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
28.6
Hindustan Zinc (18/10/2012)

Particulars (` cr)
EBITDA margin (%)

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

Particulars (` cr)
2QFY13E
Net sales
1,323
1,072
23
1,463
(10)
EBITDA
213
519
(59)
(120)
(278)
EBITDA margin (%)
16.1
48.4
Net profit
(268)
177
(251)
(793)
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
701
588
19
774
(9)
21
632
(22)
-8.2
(66)
Adani Ports & SEZ (19/10/2012)

Particulars (` cr)
Net sales
EBITDA
496
411
EBITDA margin (%)
70.8
69.9
Net profit
335
273
23
418
(20)
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
81.7
Exide Industries (19/10/2012)

Particulars (` cr)
Net sales
15.0
204
152
Market Outlook
October 18, 2012
ITC (19/10/2012)
Particulars (` cr)
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
Net sales
6,884
5,974
15
6,652
EBITDA
2,536
2,219
14
2,368
36.8
37.1
1,754
1,514
EBITDA margin (%)

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

Particulars (` cr)
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
Net sales
862
718
20
811
EBITDA
213
208
233
(9)
EBITDA margin (%)
24.7
29.0
Net profit
164
160
157
28.7
TCS - Consolidated (19/10/2012)

Particulars (` cr)
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
Net sales
15,460
11,633
33
14,869
Net profit
3,366
2,231
51
3,072
10
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
Bajaj Auto (20/10/2012)

Particulars (` cr)
Net sales
4,838
5,046
(4)
4,714
EBITDA
906
1,057
(14)
872
EBITDA margin (%)
18.7
20.9
Net profit
723
726
(0)
718
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
4,619
3,910
18
5,075
(9)
EBITDA
990
652
52
1,308
(24)
EBITDA margin (%)
21.4
16.7
Net profit
579
279
108
778
(26)
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
201
191
190
18.5
Ultratech Cement (20/10/2012)

Particulars (` cr)
Net sales
25.8
Federal Bank (20/10/2012)

Particulars (` cr)
Net profit
Economic and Political News
BJP pleased with land acquisition bill but not ready to support just yet
IT sector needs new products to meet US$300bn target: Infosys
Oil exports from India to Pak stuck on price issue
Corporate News
Bosch opens 100 service networks in north India

DHL lines up `700cr investment in India
Lupin gets USFDA nod for generic Avapro tablets
Mahindra launches Rexton at `17.67lakh
SBI cuts processing fee on home, auto loans for festive season
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
Market Outlook
October 18, 2012
Result Calendar
Date
Company
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, Nalco, 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, PVR
October 31, 2012
NHPC, Titan Inds., LIC Housing Fin., Tata Global, Aventis, TVS Motor
Source: Bloomberg, Angel Research
Global economic events release calendar

Date
October 18, 2012
Country
Event Description
Unit
Period
Bloomberg Data
Last Reported
Estimated
US
Initial Jobless claims
Thousands
Oct 13
339.00
365.00
China
Industrial Production (YoY)
% Change
Sep
9.20
9.00
China
Real GDP (YoY)
% Change
3Q
7.40
7.40
October 19, 2012
US
Millions
Sep
4.82
4.74
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
Value
Oct A
47.40
--
Thousands
Sep
373.00
381.00
Oct 24
0.25
0.25
GDP (YoY)
% Change
3Q A
(0.50)
--
US
GDP Qoq (Annualised)
3Q A
1.30
1.80
US
Consumer Confidence
Oct
70.30
--
India
RBI Repo rate
% Change
S.A./
1985=100
%
Oct 30
8.00
8.00
India
RBI Cash Reserve ratio
Oct 30
4.50
4.25
India
RBI Reverse Repo rate
Oct 30
7.00
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
--
November 06, 2012
UK
Industrial Production (YoY)
% Change
Sep
(1.20)
--
November 08, 2012
UK
BOE Announces rates
% Ratio
Nov 8
0.50
0.50
Euro Zone
ECB announces interest rates
Nov 8
0.75
--
November 02, 2012
Market Strategy
October 18, 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 18, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Agri / Agri Chemical

Rallis
Neutral
142
2,753
1,466
1,686
14.8
14.8
7.0
8.1
20.2
17.5
4.3
3.7
22.6
22.5
2.0
1.7
United Phosphorus
Buy
121
170
5,578
8,421
9,263
16.5
16.5
15.0
17.0
8.1
7.1
1.2
1.0
15.6
15.5
0.8
0.7
Amara Raja Batteries
Neutral
224
3,826
2,844
3,275
15.4
15.6
15.9
18.8
14.1
11.9
3.6
2.9
28.9
26.9
1.2
1.1
Apollo Tyres
Accumulate
85
99
4,294
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
6,213
14,920
16,850
9.0
9.3
2.2
2.8
10.7
8.5
2.0
1.7
13.3
15.6
0.5
0.5
Automotive Axle#
Neutral
386
583
993
1,140
11.6
11.5
36.9
43.0
10.5
9.0
2.1
1.8
21.2
21.3
0.7
0.5
Bajaj Auto
Neutral
1,755
50,778
21,285
23,927
18.2
18.3
108.5
121.3
16.2
14.5
6.7
5.4
46.1
41.3
2.1
1.8
Bharat Forge
Accumulate
305
351
7,108
7,004
7,985
16.2
16.4
20.3
25.1
15.0
12.2
2.8
2.4
20.0
20.9
1.2
1.0
Bosch India*
Neutral
8,810
27,661
8,793
10,294
17.4
18.5
348.3
435.8
25.3
20.2
4.9
4.1
19.4
20.1
2.8
2.3
CEAT
Buy
117
164
400
4,989
5,634
8.7
8.5
32.7
41.1
3.6
2.8
0.5
0.4
15.8
16.9
0.3
0.2
Exide Industries
Neutral
159
13,477
5,913
6,787
16.0
17.0
7.4
9.2
21.5
17.3
3.8
3.3
19.1
20.3
1.9
1.6
FAG Bearings*
Neutral
1,777
2,952
1,505
1,768
17.5
18.0
111.2
132.7
16.0
13.4
3.3
2.7
22.8
22.2
1.7
1.4
Hero Motocorp
Accumulate
1,805
2,077
36,050
24,941
28,706
15.0
15.5
122.5
134.0
14.7
13.5
6.5
5.1
49.6
42.2
1.2
1.0
JK Tyre
Buy
109
135
448
7,517
8,329
6.1
6.3
26.2
38.5
4.2
2.8
0.5
0.5
13.4
17.2
0.3
0.3
Auto & Auto Ancillary
Mahindra and Mahindra Accumulate
826
944
50,727
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
1,369
39,560
41,796
49,350
7.6
8.6
66.6
92.6
20.6
14.8
2.4
2.1
12.0
14.8
0.7
0.6
Motherson Sumi
Neutral
153
8,974
24,285
27,317
6.7
7.2
8.1
10.6
19.0
14.4
4.0
3.3
22.9
24.7
0.5
0.5
Subros
Buy
29
34
175
1,230
1,378
8.8
8.6
4.5
5.7
6.5
5.1
0.6
0.6
9.8
11.8
0.4
0.3
Tata Motors
Buy
265
316
70,599 195,096 219,428
12.8
13.0
39.0
44.9
6.8
5.9
2.0
1.5
32.6
28.8
0.4
0.4
TVS Motor
Buy
41
49
1,938
7,611
8,443
7.9
7.9
4.7
5.4
8.7
7.5
1.5
1.3
17.9
18.1
0.2
0.2
ABB*
Sell
780
593
16,523
8,760
10,023
6.2
8.7
14.5
24.7
53.9
31.6
5.9
5.1
11.6
17.6
1.9
1.7
BGR Energy
Neutral
271
1,956
3,669
4,561
11.0
11.0
24.7
29.6
11.0
9.2
1.6
1.5
15.3
16.7
1.1
1.0
BHEL
Neutral
247
60,419
47,801
43,757
19.0
18.8
25.3
22.8
9.8
10.8
3.0
2.5
34.3
25.3
1.1
1.2
Blue Star
Neutral
208
1,873
3,047
3,328
5.4
6.9
12.5
16.2
16.7
12.8
4.0
3.3
26.1
28.2
0.6
0.5
Crompton Greaves
Accumulate
130
141
8,362
12,691
14,126
7.4
8.9
7.0
9.7
18.7
13.4
2.1
1.9
11.9
15.0
0.7
0.6
Jyoti Structures
Buy
45
54
371
2,622
2,744
10.7
10.5
9.6
12.2
4.7
3.7
0.5
0.5
10.8
12.3
0.4
0.3
KEC International
Accumulate
68
78
1,746
6,858
7,431
7.1
7.5
8.3
9.8
8.2
7.0
1.4
1.2
25.1
24.0
0.4
0.4
LMW
Neutral
2,066
2,327
2,369
2,727
11.7
11.7
143.4
166.0
14.4
12.5
2.4
2.2
17.4
18.4
0.5
0.4
Thermax
Neutral
560
6,674
5,514
5,559
8.9
10.2
26.9
30.3
20.9
18.5
3.6
3.2
18.4
18.2
1.1
1.0
Capital Goods
Market Outlook
October 18, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Cement
ACC
Neutral
1,428
26,803
10,964
12,417
21.6
21.5
76.9
82.2
18.6
17.4
3.5
3.2
19.5
19.1
2.2
1.9
Ambuja Cements
Neutral
203
31,301
10,163
11,729
25.4
24.9
11.2
12.5
18.2
16.3
3.9
3.5
20.3
20.5
2.7
2.2
India Cements
Neutral
98
2,998
4,354
4,929
18.6
18.7
9.8
12.3
9.9
7.9
0.8
0.8
8.6
10.2
1.1
1.0
J K Lakshmi Cements
Neutral
119
1,460
1,964
2,278
19.5
20.4
16.3
17.9
7.3
6.7
1.1
0.9
14.7
14.6
0.9
1.2
Madras Cements
Neutral
184
4,383
3,608
3,928
27.6
27.0
15.7
18.3
11.7
10.1
1.9
1.6
16.9
17.0
1.9
1.6
Shree Cements^
Neutral
4,078
14,207
5,630
6,187
29.6
27.9
222.5
259.3
18.3
15.7
4.2
3.4
25.3
23.8
1.9
1.5
UltraTech Cement
Neutral
2,026
55,540
20,913
23,530
21.3
22.7
93.2
110.5
21.7
18.3
3.7
3.2
18.4
18.7
2.5
2.3
225
304
1,184
2,034
2,315
22.4
22.4
27.1
31.7
8.3
7.1
1.0
0.9
13.1
13.4
1.8
2.1
Construction
Ashoka Buildcon
Buy
Consolidated Co
Neutral
14
258
2,262
2,522
6.7
7.5
1.5
2.7
9.4
5.3
0.4
0.4
4.4
7.5
0.4
0.4
Hind. Const.
Neutral
18
1,080
4,239
4,522
9.9
11.2
(2.3)
(1.0)
(7.9)
(18.5)
1.0
1.1
(11.4)
(5.6)
1.2
1.2
IRB Infra
Accumulate
143
166
4,745
3,964
4,582
42.3
40.2
15.7
16.9
9.1
8.4
1.4
1.2
16.6
15.8
2.8
2.7
ITNL
Buy
182
232
3,541
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
1,381
5,510
6,722
8.8
9.0
2.5
4.6
17.8
9.8
0.6
0.6
3.4
5.8
0.7
0.7
Jaiprakash Asso.
Accumulate
91
91
19,372
15,259
17,502
25.7
24.7
4.0
4.8
22.7
19.1
1.8
1.6
8.5
9.3
2.5
2.2
Larsen & Toubro
Accumulate
1,624
1,721
99,692
60,474
69,091
12.1
11.5
79.7
85.4
20.4
19.0
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
48
1,239
5,804
6,513
8.0
8.6
3.0
3.5
15.9
13.8
0.5
0.5
3.2
3.6
0.6
0.7
Patel Engg.
Neutral
80
561
3,609
3,836
13.1
13.1
14.0
14.6
5.7
5.5
0.4
0.3
6.3
6.1
1.0
1.0
Punj Lloyd
Neutral
52
1,730
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
2,169
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
212
265
1,050
6,732
7,837
8.1
8.4
23.4
29.4
9.1
7.2
0.8
0.7
9.2
10.6
0.5
0.5
Allahabad Bank
Reduce
138
131
6,918
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
5,990
4,929
5,633
3.1
3.1
23.7
24.5
4.5
4.4
0.7
0.7
16.6
15.3
1,151
1,326
47,698
15,425
18,500
3.1
3.2
115.9
137.5
9.9
8.4
1.8
1.6
19.9
20.1
Neutral
769
30,098
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
296
330
16,967
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
49
2,910
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
425
18,812
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
74
5,477
7,095
8,102
2.5
2.7
15.6
21.0
4.8
3.5
0.8
0.7
12.2
14.7
Market Outlook
October 18, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Financials
Corporation Bank
Accumulate
407
447
6,027
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
3,739
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
8,041
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
752
115,825
7,340
8,805
3.5
3.5
31.5
37.8
23.9
19.9
4.8
4.3
34.8
32.2
HDFC Bank
Neutral
627
147,960
21,753
26,811
4.4
4.5
28.7
35.9
21.8
17.5
4.2
3.5
20.7
21.9
ICICI Bank
Buy
1,050
1,245
120,651
22,304
26,855
2.9
3.0
68.6
82.0
15.3
12.8
1.9
1.7
14.2
15.6
IDBI Bank
Neutral
98
12,535
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
7,959
6,062
6,818
3.4
3.4
40.5
41.6
4.6
4.5
0.8
0.7
18.1
16.3
IOB
Accumulate
80
87
6,336
7,343
8,391
2.5
2.5
16.0
21.3
5.0
3.7
0.6
0.5
11.3
13.6
J & K Bank
Accumulate
1,167
1,021
5,657
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
251
301
12,677
1,867
2,338
2.4
2.4
21.1
28.5
11.9
8.8
2.0
1.7
17.5
20.4
Oriental Bank
Neutral
285
8,317
6,278
7,125
2.7
2.8
56.7
62.6
5.0
4.6
0.7
0.6
14.1
13.9
Punjab Natl.Bank
Accumulate
814
941
27,596
19,934
22,705
3.3
3.3
147.8
166.2
5.5
4.9
1.0
0.8
17.7
17.3
South Ind.Bank
Accumulate
23
25
3,118
1,535
1,760
2.9
2.8
3.5
3.9
6.6
6.0
1.1
1.0
19.5
17.1
St Bk of India
Accumulate
2,215
2,353
148,613
63,806
73,435
3.5
3.6
225.7
258.4
9.8
8.6
1.7
1.4
17.7
17.8
Syndicate Bank
Accumulate
118
117
7,112
6,722
7,719
2.9
3.0
24.3
27.2
4.9
4.3
0.8
0.7
17.0
16.8
UCO Bank
Neutral
76
5,065
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
200
226
10,983
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
2,334
3,572
4,041
2.8
2.9
17.2
22.1
3.8
2.9
0.5
0.5
14.2
16.2
Vijaya Bank
Neutral
57
2,825
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
385
452
13,717
3,270
4,253
2.8
3.0
33.9
42.2
11.4
9.1
2.4
2.0
23.1
23.6
3,912
37,519
11,198
13,184
16.3
16.3
121.0
144.8
32.3
27.0
10.8
8.5
37.4
35.3
3.3
2.8
489
584
5,841
5,835
6,824
5.7
6.0
20.7
25.4
23.6
19.3
9.3
7.1
43.1
41.9
0.9
0.7
1,236
16,808
3,018
3,429
20.9
22.2
35.7
42.3
34.6
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
132
23,033
6,124
7,030
17.0
16.8
4.5
5.2
29.6
25.5
12.2
9.7
43.2
41.5
3.7
3.1
GlaxoSmith Con*
Neutral
2,987
12,560
3,124
3,663
17.1
17.6
104.5
123.8
28.6
24.1
8.9
7.1
34.4
32.8
3.7
3.1
Godrej Consumer
Neutral
689
23,459
6,097
7,233
18.4
18.6
21.9
26.5
31.5
26.1
7.0
5.8
25.5
25.4
3.9
3.3
HUL
Neutral
573
123,878
25,350
28,974
13.9
13.9
14.3
16.5
40.2
34.8
23.9
18.4
70.9
59.8
4.4
3.8
ITC
Neutral
288
225,947
29,513
33,885
35.4
35.8
9.3
10.8
31.0
26.7
10.3
8.6
35.6
35.0
6.9
6.0
Market Outlook
October 18, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
( )
Price ( )
( cr )
FY13E
OPM(%)
EPS ( )
FY14E
FY13E
FY14E
FY13E
PER(x)
P/BV(x)
FY14E
FY13E
FY14E
FY13E
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FMCG
Marico
Neutral
204
13,136
4,840
5,643
13.1
13.1
6.8
8.5
30.1
24.1
8.3
6.3
31.4
29.7
2.7
2.2
Nestle*
Neutral
4,744
45,739
8,610
10,174
20.9
21.2
114.8
139.8
41.3
33.9
24.9
17.4
71.2
60.3
5.0
4.1
Tata Global
Neutral
162
10,046
7,207
7,927
9.7
10.0
6.6
7.8
24.6
20.8
2.5
2.4
8.6
9.5
1.1
1.0
HCL Tech^
Accumulate
580
632
40,275
24,569
27,002
18.8
17.6
41.4
45.1
14.0
12.9
3.2
2.7
22.8
21.1
1.6
1.4
Hexaware*
Accumulate
111
140
3,295
1,966
2,161
22.5
21.4
11.6
12.2
9.6
9.2
2.5
2.1
26.8
23.9
1.5
1.3
Infosys
Neutral
2,368
135,964
39,174
41,580
29.5
30.4
159.2
171.6
14.9
13.8
3.6
3.2
24.1
23.1
3.2
2.9
Infotech Enterprises
Neutral
195
2,171
1,904
2,072
18.0
17.5
18.2
19.7
10.7
9.9
1.6
1.4
14.6
13.8
0.8
0.6
KPIT Cummins
Buy
118
142
2,111
2,191
2,364
16.1
16.5
11.3
13.0
10.5
9.1
2.3
1.8
21.8
20.0
1.0
0.8
Mahindra Satyam
Neutral
110
12,934
7,628
8,062
19.9
18.4
9.7
10.0
11.3
11.0
3.1
2.4
27.7
22.2
1.3
1.1
Mindtree
Accumulate
648
747
2,652
2,324
2,437
20.0
17.7
73.3
74.7
8.8
8.7
2.1
1.7
24.1
19.7
0.9
0.8
Mphasis&
Neutral
404
8,496
5,700
5,993
18.0
16.9
37.0
37.3
10.9
10.8
1.6
1.4
14.3
12.6
1.0
0.9
NIIT
Accumulate
34
36
566
1,034
1,146
9.9
11.0
5.2
6.4
6.6
5.4
0.8
0.8
12.8
14.3
0.3
0.2
Persistent
Neutral
425
1,698
1,207
1,278
26.2
24.3
42.4
44.3
10.0
9.6
1.7
1.5
17.1
15.5
1.1
0.9
TCS
Accumulate
1,281
1,405
250,808
61,611
67,507
29.3
29.1
69.0
74.0
18.6
17.3
6.0
5.0
32.4
28.6
3.9
3.5
Tech Mahindra
Accumulate
950
1,046
12,131
6,603
7,196
18.2
17.1
92.7
99.6
10.3
9.5
2.4
2.0
23.6
20.5
1.9
1.7
Wipro
Accumulate
353
421
86,958
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
216
236
3,952
1,604
1,786
22.3
23.8
11.2
13.7
19.3
15.8
3.6
3.2
20.3
21.4
2.2
2.0
HT Media
Buy
97
113
2,289
2,111
2,272
15.0
15.2
7.4
8.3
13.2
11.8
1.4
1.3
11.3
11.4
0.7
0.6
Jagran Prakashan
Buy
104
112
3,288
1,488
1,664
22.7
22.8
6.2
7.1
16.7
14.6
4.1
3.6
25.2
26.3
2.1
1.8
PVR
Neutral
223
580
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
360
14,201
1,981
2,239
77.0
76.7
18.6
21.3
19.4
16.9
4.9
4.3
27.1
27.5
6.4
5.5
Bhushan Steel
Neutral
500
10,609
11,979
14,584
31.6
31.0
49.2
61.4
10.2
8.1
1.3
1.2
14.1
15.2
2.9
2.4
Coal India
Accumulate
354
385
223,283
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
758
1,984
2,074
11.2
12.6
2.5
2.9
8.9
7.6
0.4
0.2
5.1
5.7
0.5
0.5
Hind. Zinc
Accumulate
135
144
57,105
12,446
13,538
52.3
52.9
14.3
15.5
9.5
8.7
1.8
1.5
20.5
18.9
2.7
2.1
Hindalco
Neutral
117
22,314
84,855
92,446
8.7
9.3
13.2
16.2
8.8
7.2
0.7
0.6
7.8
8.9
0.7
0.6
JSW Steel
Neutral
727
16,209
38,740
41,459
17.3
17.0
79.9
89.4
9.1
8.1
0.9
0.8
10.4
10.6
0.9
0.8
MOIL
Accumulate
248
271
4,169
918
993
50.7
50.9
24.5
26.1
10.1
9.5
1.5
1.4
16.0
15.5
2.3
2.0
Monnet Ispat
Buy
294
379
1,889
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 18, 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
12,783
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
187
214
74,140
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
83
34,159
47,252
60,351
14.2
14.8
9.6
11.7
8.6
7.1
0.8
0.7
9.4
10.6
1.2
1.0
Neutral
170
14,749
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
33,623
41,680
45,382
24.2
23.2
16.3
16.9
6.2
5.9
0.7
0.6
11.3
10.7
0.8
0.7
Tata Steel
Buy
408
481
39,582 145,799 150,431
10.3
11.2
48.6
63.3
8.4
6.4
0.8
0.8
10.5
12.4
0.5
0.5
Sarda
Accumulate
125
148
449
1,251
1,321
22.7
23.4
33.0
37.1
3.8
3.4
0.5
0.5
15.1
14.8
0.8
0.7
Prakash Industries
Godawari Power and
Ispat
Oil & Gas
Buy
52
73
701
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
118
161
375
2,341
2,425
15.6
17.3
33.3
43.2
3.5
2.7
0.4
0.4
13.2
14.4
0.5
0.5
Cairn India
Accumulate
341
380
65,021
16,605
17,258
75.4
71.7
57.0
54.9
6.0
6.2
1.1
0.9
20.2
16.3
2.8
2.2
GAIL
Neutral
371
47,092
50,176
55,815
15.5
15.8
35.4
36.5
10.5
10.2
1.9
1.6
18.9
17.0
0.7
0.5
ONGC
Accumulate
279
312
239,083 147,139 154,821
33.9
33.7
30.7
32.3
9.1
8.7
1.6
1.4
18.3
17.2
1.4
1.2
Reliance Industries
Neutral
805
263,732 362,700 380,031
7.9
8.0
61.5
64.3
13.1
12.5
1.3
1.2
10.3
9.9
0.7
0.7
Gujarat Gas*
Neutral
298
3,819
11.5
11.3
19.2
22.1
15.5
13.5
4.1
3.7
28.7
29.0
1.3
1.0
Indraprastha Gas
Neutral
257
3,596
3,040
3,135
24.3
26.7
24.8
27.9
10.4
9.2
2.4
2.0
25.5
23.6
1.3
1.1
Petronet LNG
Gujarat State Petronet
Ltd.
Pharmaceuticals
Accumulate
163
176
12,236
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
4,592
1,041
939
91.8
91.9
8.5
7.4
9.6
11.0
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
3,819
3,228
70
91
1,326
1,624
1,855
14.2
15.6
6.6
9.1
10.7
7.7
2.7
2.1
27.9
29.9
1.0
0.8
156
156
4,543
5,243
5,767
14.6
14.6
11.8
12.6
13.2
12.4
1.6
1.4
17.9
16.4
1.3
1.1
2,202
5,070
1,482
1,682
15.5
15.5
95.1
104.4
23.2
21.1
4.1
3.2
18.6
17.0
3.5
3.0
865
953
17,703
6,148
7,386
18.6
19.6
36.0
46.1
24.0
18.8
5.7
4.5
25.8
26.8
3.1
2.6
362
29,062
8,031
9,130
23.4
22.4
18.4
20.0
19.7
18.1
3.3
2.8
17.8
16.6
3.6
3.1
1,690
1,859
28,691
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
100
810
1,280
1,536
17.8
17.8
9.2
11.3
10.9
8.9
0.8
0.8
7.7
8.5
1.3
1.1
GSK Pharma*
Neutral
1,991
16,860
2,651
2,993
31.7
31.2
76.0
82.4
26.2
24.2
7.6
6.7
20.1
26.3
5.5
4.8
Indoco Remedies
Buy
66
92
608
685
837
15.2
15.2
7.4
8.9
8.9
7.4
1.4
1.2
16.4
17.0
1.1
0.9
Ipca labs
Neutral
460
5,807
2,850
3,474
20.7
20.7
29.2
36.6
15.8
12.6
3.7
2.9
26.1
26.1
2.3
1.9
Lupin
Accumulate
572
647
25,550
8,426
10,082
19.7
20.0
26.3
31.3
21.7
18.3
5.1
4.1
26.0
24.7
3.2
2.6
Orchid Chemicals
Neutral
111
783
1,667
1,835
13.9
13.9
11.4
13.3
9.8
8.4
0.6
0.6
6.6
7.3
0.9
0.8
Market Outlook
October 18, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Pharmaceuticals
Ranbaxy*
Neutral
552
23,294
12,046
11,980
18.0
15.8
31.3
29.8
17.6
18.5
6.0
4.8
39.1
28.9
1.9
1.8
Sun Pharma
Neutral
712
73,625
9,752
12,134
41.6
41.6
26.0
28.2
27.4
25.3
5.1
4.4
20.3
18.8
6.6
5.1
CESC
Neutral
321
4,005
5,218
5,644
24.2
23.8
44.6
47.6
7.2
6.7
0.8
0.7
11.0
10.6
1.6
1.6
GIPCL
Accumulate
NTPC
Neutral
Power
69
77
1,041
1,557
1,573
29.3
28.7
10.8
11.0
6.4
6.3
0.7
0.6
10.8
10.2
1.2
1.0
169
139,183
74,111
85,789
22.7
23.1
12.1
13.7
14.0
12.3
1.7
1.6
12.6
13.2
2.5
2.3
Real Estate
Anant Raj
Accumulate
74
78
2,176
657
875
52.0
56.1
8.4
12.7
8.8
5.8
0.5
0.5
6.3
8.9
4.5
3.4
DLF
Neutral
201
34,141
9,878
12,033
44.7
46.1
9.6
13.4
21.0
15.0
1.3
1.3
6.4
8.7
6.5
5.4
HDIL
Buy
103
115
4,297
2,441
3,344
55.1
48.2
22.7
26.6
4.5
3.9
0.4
0.4
8.8
9.4
3.5
2.7
MLIFE
Neutral
411
1,678
813
901
26.2
26.6
32.0
37.1
12.8
11.1
1.3
1.2
10.4
11.0
2.3
2.0
Bharti Airtel
Neutral
270
102,590
79,147
86,745
31.1
32.5
9.9
15.1
27.2
17.9
1.9
1.7
7.0
9.7
2.0
1.7
Idea Cellular
Neutral
81
26,834
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
61
12,611
20,650
20,935
32.3
33.0
4.2
5.8
14.4
10.6
0.3
0.3
2.3
3.1
2.3
2.1
Abbott India
Neutral
1,458
3,099
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
225
228
2,240
3,670
4,290
7.6
8.8
15.0
23.0
15.0
9.8
2.7
2.2
18.6
22.4
0.5
0.5
Cera Sanitaryware
Buy
377
388
477
396
470
16.7
16.6
31.0
35.0
12.2
10.8
2.8
2.2
24.8
23.0
1.1
1.0
Cravatex
Buy
464
682
120
289
340
5.2
5.9
41.0
57.0
11.3
8.1
2.9
2.2
25.2
26.5
0.5
0.4
CRISIL
Neutral
948
6,650
982
1,136
34.3
34.3
34.3
40.0
27.6
23.7
12.5
10.0
50.9
46.9
6.5
5.4
Finolex Cables
Buy
45
61
687
2,334
2,687
6.2
6.5
8.0
10.0
5.6
4.5
0.8
0.7
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
316
729
1,543
1,654
6.5
7.3
24.8
31.1
12.7
10.2
2.1
1.8
17.1
19.0
0.3
0.2
Disa India
Buy
2,952
3,353
446
176
203
22.7
22.6
182.5
209.6
16.2
14.1
8.4
6.6
51.8
47.1
2.2
1.8
Greenply Industries
Buy
234
309
565
1,925
2,235
10.6
10.9
29.6
44.1
7.9
5.3
1.3
1.1
16.8
21.0
0.5
0.4
Hitachi
Neutral
136
312
868
977
3.9
6.6
2.7
10.9
49.6
12.5
1.8
1.6
3.7
13.6
0.4
0.4
Honeywell Automation* Neutral
2,581
2,281
1,847
2,162
4.3
7.3
69.0
135.0
37.4
19.1
3.4
2.9
9.3
16.3
1.3
1.1
1,101
1,056
1,081
8.1
10.6
34.0
47.0
18.4
13.3
2.6
2.2
14.7
17.5
1.1
1.0
Telecom
zOthers
Styrolution ABS India*
Buy
626
744
ITD Cementation
Neutral
241
278
1,451
1,669
12.3
12.4
32.4
41.5
7.5
5.8
0.7
0.6
9.4
10.9
0.6
0.6
Jyothy Laboratories
Neutral
171
2,758
1,248
1,468
9.8
10.4
5.9
7.2
28.9
23.9
4.2
3.8
15.0
16.6
2.5
2.0
MCX
Accumulate
1,377
1,440
7,021
553
624
65.3
66.3
62.5
72.0
22.0
19.1
6.1
5.2
27.5
27.4
8.9
7.4
MRF
Buy
10,164
12,884
4,311
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 18, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
3,445
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
3,843
887
1,108
18.3
18.6
95.0
120.9
36.3
28.5
18.9
15.4
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
72
79
1,953
4,751
5,189
16.3
16.6
13.6
15.8
5.2
4.5
0.7
0.6
12.9
13.2
0.8
0.6
Siyaram Silk Mills
Buy
291
392
273
1,042
1,173
12.4
12.5
66.3
78.5
4.4
3.7
0.9
0.7
21.1
20.8
0.5
0.4
S. Kumars Nationwide
Buy
18
24
543
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
1,732
5,720
6,599
5.3
6.8
3.6
5.4
9.9
6.7
14.4
4.6
0.4
0.4
TAJ GVK
Buy
74
108
466
300
319
35.8
36.2
7.9
9.1
9.4
8.2
1.2
1.1
13.9
14.4
1.8
1.5
Tata Sponge Iron
Buy
325
377
501
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
313
335
240
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
1,285
16,809
10,289
11,421
13.5
14.3
31.0
42.9
41.4
29.9
3.2
2.9
8.1
10.3
2.2
2.0
Vesuvius India
Neutral
354
718
560
611
16.1
17.0
24.7
28.8
14.3
12.3
2.1
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 17, 2012
Market Outlook
October 18, 2012

Market Outlook Market Outlook: Dealer's Diary

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Market Outlook

October 18, 2012

OIL & GAS

Telecom Commission recommends refarming of the entire spectrum in

Refer detailed news analysis on the following page

Net Inflows (October 16, 2012)

FII Derivatives (October 17, 2012)

Telecom Commission recommends refarming of the entire

MM launches Rexton at `17.7lakhs

ACC, Ambuja Cements to pay 2% of sales as royalty to

HMCL to launch its indigenous product in FY2014

TDSAT rejects MTNL, BSNL case on RCom

Force Motors launches Traveller 26

Rallis India (CMP 142 / TP: - / Upside: -)

Neutral stance on the stock on account of valuations.

Infotech Enterprises (CMP: `195 / TP: - / Upside: -)

For 2QFY2013, Infotech Enterprises (Infotech) reported a revenue of US$87.2mn,

Ambuja Cements (CMP: `203/TP: - /Upside: -)

P/BV EV/EBITDA EV/Tonne*

Note: Computed on TTM basis

ACC (CMP: `1,428 /TP: - / Upside: -)

P/BV EV/EBITDA EV/Tonne*

Note: * computed on TTM basis

DB Corp (CMP: `219 / TP: `236 / Upside: 8%)

Persistent (CMP: `431 / TP: - / Upside: -)

Quarterly Bloomberg Brokers Consensus Estimate

EBITDA margin (%)

Ambuja Cement (18/10/2012)

EBITDA margin (%)

Hindustan Zinc (18/10/2012)

EBITDA margin (%)

Adani Power (19/10/2012)

EBITDA margin (%)

Adani Ports & SEZ (19/10/2012)

EBITDA margin (%)

EBITDA margin (%)

Exide Industries (19/10/2012)

EBITDA margin (%)

Zee Entertainment - Consolidated (19/10/2012)

EBITDA margin (%)

TCS - Consolidated (19/10/2012)

Bajaj Auto (20/10/2012)

EBITDA margin (%)

EBITDA margin (%)

Ultratech Cement (20/10/2012)

Federal Bank (20/10/2012)

Economic and Political News

Bosch opens 100 service networks in north India

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, PVR

October 31, 2012

Source: Bloomberg, Angel Research

Global economic events release calendar