Market Outlook: Dealer's Diary

Market Outlook
July 22, 2013
Dealers Diary
Indian markets are expected to open flat today tracking flat opening in SGX Nifty
and mixed opening in Asian markets.
US markets posted a mixed performance on Friday as poor earnings of tech

corporations such as Microsoft and Google resulted in a 0.7% decline in the
Nasdaq index. However, Dow Jones and S&P 500 indices ended the day flat.
Mixed performance on Friday followed the healthy gains posted by the markets
earlier in the week aided by upbeat economic data and comments by Federal
Reserve Chief that there is no 'preset' timetable for rolling back bond purchases
and that the central bank intends to maintain highly accommodative policy for
the foreseeable future. The European markets ended Friday's session with
modest losses, due to the weak performance of US technology stocks.
Meanwhile, Indian markets remained flat on Friday as weakness in banking
stocks offset the sharp gains by IT stocks post strong results announced by TCS.
Markets Today
The trend deciding level for the day is 20,173/ 6,039 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 20,234 20,318 / 6,057 6,085 levels. However, if NIFTY trades below
20,173 / 6,039 levels for the first half-an-hour of trade then it may correct up to
20,088 20,027/ 6,011 5,992 levels.
Indices
S2
S1
PIVOT
R1
R2
SENSEX
20,027
20,088
20,173
20,234
20,318
NIFTY
5,992
6,011
6,039
6,057
6,085
News Analysis
Nine Pharmaceutical companies under NPPA scanner

Result Review: Reliance Industries, HDFC, Bajaj Auto, Hindustan Zinc, Federal
Bank, Uco Bank, Hexaware, Siyaram Silk Mills
Result Preview: L&T, Asian Paints
Refer detailed news analysis on the following page
Net Inflows (July 18, 2013)

` cr
FII
MFs
Purch
3,204
507
Sales
3,318
810
Net
(114)
(303)
MTD
(6,005)
(1,034)
YTD
65,301
(13,211)
FII Derivatives (July 19, 2013)

` cr
Purch
Sales
Net
Open Interest
Index Futures
Stock Futures
2,404
2,556
1,893
2,951
511
(395)
15,547
29,268
Gainers / Losers
Company
Gainers
Price (`)
chg (%)
MMTC
TCS
53
5.0
Company
BHEL
Losers
Price (`)
chg (%)
174
(8.0)
1,742
4.9
Financial Tech
631
(7.2)
HCL Tech
893
4.0
Wockhardt
889
(6.4)
Bajaj Auto
1,967
3.7
Uco Bank
69
(5.6)
Tech Mahindra
1,131
3.6
Gitanjali Gems
110
(5.0)
www.angelbroking.com
Domestic Indices
BSE Sensex
Chg (%)
(Pts)
0.1
(Close)
21 20,150
Nifty
(0.1)
(9)
6,029
MID CAP
(0.6)
(35)
5,993
SMALL CAP
(0.6)
(32)
5,706
BSE HC
(1.0)
(94)
9,346
BSE PSU
(0.2)
(11)
5,945
BANKEX
(1.8)
(236) 12,543
AUTO
1.7
174 10,687
METAL
(0.8)
(59)
7,478
OIL & GAS
0.7
61
9,161
BSE IT
2.8
194
7,097
Chg (%)
(Pts)
(Close)
Global Indices
Dow Jones
(0.0)
NASDAQ
(0.7)
(24)
3,588
FTSE
(0.1)
(4)
6,631
Nikkei
(1.5)
(219) 14,590
0.1
17 21,362
Hang Sang
(5) 15,544
Straits Times
(0.2)
(5)
3,213
Shanghai Com
(1.5)
(31)
1,993
Chg (%)
(Pts)
(Close)
0.3
0.1
$47.7
WIT
(0.2)
(0.0)
$8.0
IBN
(1.5)
(0.5)
$35.8
HDB
(0.2)
(0.1)
$37.8
Indian ADR
INFY
Advances / Declines
BSE
NSE
Advances
1,009
506
Declines
1,331
814
147
77
Unchanged
Volumes (` cr)
BSE
1,929
NSE
12,330
Market Outlook
July 22, 2013
Nine Pharmaceutical companies under NPPA scanner

Nine drug makers, including Ranbaxy, Dr Reddys Labs, Glenmark, Cipla and
Cadila Health, are likely to face a hefty penalty from the National Pharmaceutical
Pricing
Authority
(NPPA)
over
allegedly
selling anti-asthma
drug Doxofylline without prior price approval. The move comes in the wake of a
recent Supreme Court order against the industry that brought the widely prescribed
medicine under price control. The total penalty on the nine firms is estimated to be
Rs 2,500cr because the fine will be calculated in retrospect from 2009, when the
price of the drug was fixed by NPPA. According to official sources, NPPA has
already sent notices to four drug companies Ranbaxy, Cipla, Cadila and
Glenmark for allegedly overcharging on sale of their individual brands
containing Doxofylline.
Doxofylline, a bulk drug, is a derivative product of theophylline. While NPPA
brought theophylline under price control in 2006, firms evaded regulation by
launching Doxofylline as an alternative around 2008. However, in 2009, NPPA
imposed a price cap on Doxofylline as well. This prompted a few drug firms selling
the medicine to take legal recourse against the regulators order. However, the
apex court held earlier this month that Doxofylline was a bulk drug the price of
which was to be fixed by the Centre. While the exact penalty for individual
companies is not know, it would not have a major bearing on the individual
companies so much as most of the companies are sitting on a comfortable Debt
on the books. But it terms of impact the ones which will be impacted most would
be Ranbaxy and Cadila , amongst the coverage. We maintain our ratings on the
stock.
Result Review
Reliance Industries (CMP: `923, TP: -, Upside :-)
Reliance Industries (RIL) 1QFY2014 net profit was in line with our estimate. RILs
net sales declined by 4.6% yoy to `87,645cr, above our estimate of `82,561cr.
Net sales decline was mainly led by lower Oil and Gas segment sales (-42.0% yoy
to `1,454cr) and Refining segment sales (-4.6% yoy to `81,458cr). Gas production
from KG D6 block declined by 52.9% yoy to 15mmscmd. Gross refining margins
(GRMs) stood at US$8.4/bbl in 1QFY2014 (US$7.6/bbl in 1QFY2013 and
US$10.1/bbl in 4QFY2013). Despite lower net sales, RILs EBITDA increased by
4.9% yoy to `7,075cr on account of higher profits from Refining and
Petrochemical segments. Refining segment EBIT grew by 38.5% yoy to `2,951cr
and Petrochemical segment EBIT grew by 7.5% yoy to `1,888cr. However, Oil and
Gas segment EBIT decreased 63.8% yoy to `352cr. Other income increased
33.1% yoy to `2,535cr which led to net profit growing by 8.9% yoy to `5,352cr in
line with our estimate of `5,392cr. We maintain our Neutral view on the stock.
Y/E
March
Sales
OPM
PAT
EPS
ROE
(`)
(%)
P/E P/BV
EV/EBITDA
EV/Sales
(` cr)
(%)
(` cr)
(x)
(x)
(x)
(x)
FY2014E
380,031
8.9
23,390
71.5 11.8 11.3
1.1
6.8
0.6
FY2015E
407,721
9.9
26,266
80.3 11.9 10.0
1.0
5.5
0.5
HDFC (CMP: `804 / TP: `904 / Upside: 12.5%)

HDFC reported standalone earnings growth of 17% yoy for the quarter, which was
lower than our expectations, primarily on account of nil profit on sale of
investments reported by the company vs. our expectation of around Rs70cr.
Market Outlook
July 22, 2013
Healthy loan book growth and stability witnessed on the spreads as well as on the
asset quality front, were the key highlights from the results. NII for the company
grew at 17% yoy (marginally lower than healthy advance growth of 19% yoy). As
the company reported nil profit on sale on investments during the quarter, noninterest income came in at mere Rs8cr as compared to Rs117 in last quarter and
Rs28cr in 1QFY2013. Operating income and pre-provisioning profit grew at
around 15% yoy. Provisioning expenses for the company declined 25% yoy to
Rs30cr. Overall, the company reported standalone earnings growth of 17% yoy.
Given the challenging macro developments, we believe within the BFSI space,
defensive names like HDFC may not underperform the rest of the sector in spite of
its rich valuations. At CMP, HDFCs core business (after adjusting Rs311/share
towards the value of its subsidiaries) is trading at 3.4x FY2015E ABV. We
recommend an Accumulate rating on the stock, with a target price of `904.
Y/E
Op. Inc
NIM
PAT
EPS
ABV
ROA
ROE
P/E
P/ABV
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2014E
8,928
3.6
5,877
38.4 177.3
1.0
32.5
22.2
4.8
FY2015E
10,684
3.6
6,939
45.3 200.4
1.0
32.4
18.8
4.3
March
Bajaj Auto (CMP: `1,967/ TP: `2,096/ Upside: 7%)

Bajaj Autos (BJAUT) 1QFY2014 results were broadly in-line with our expectations
and were driven by a strong growth of 9.7% yoy (18% qoq) in exports revenue. The
results exceeded expectations by a wide margin after adjusting for a notional loss
of `96cr related to the forward exchange rate contracts.
For 1QFY2014, the top-line grew by 0.9% yoy (3.5% qoq) to `4,911cr led by a
strong growth of 12.4% yoy (3.6% qoq) in net average realization. The net average
realization benefitted from favorable rates on the forex hedges and also due to
price hikes taken since 1HFY2013. Total volumes however, declined by 9.2% yoy
(flat qoq) on account of slowdown in domestic motorcycle demand. While exports
revenue in USD terms declined by ~3% yoy; INR depreciation versus the USD led
to a strong growth of 9.7% yoy (18% qoq) in INR terms. On the operating front,
EBITDA margins improved 55bp yoy (84bp qoq) to 18.5% which was in-line with
our estimate of 18.4%. Margin expansion was driven by better realization on the
exports front and also due to softening of commodity prices. While raw-material
expenditure as a percentage of sales declined 273bp yoy (245bp qoq), other
expenditure as a percentage of sales surged 170bp yoy (140bp qoq), primarily on
account of a notional loss of `96cr related to outstanding forward rate options.
Adjusted for the notional loss, EBITDA margins exceeded expectations and came in
at 20.4%. Net profit for the quarter stood at `738cr (up 2.7% yoy) and was
broadly in-line with our estimates of `726cr. Going ahead, we would seek clarity
from the Management on its outlook for the exports markets and also the demand
scenario in the domestic motorcycle market. At the current market price of `1,967,
the stock is trading at 14.1x FY2015E earnings. Currently we have an Accumulate
rating on the stock with a target price of `2,096.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
6.0
11.1
2.0
4.7
9.0
1.6
FY2014E
23,005
18.0 3,438 118.8
40.4
(x)
16.6
FY2015E
26,460
18.5 4,042 139.7
37.7
14.1
P/BV EV/EBITDA EV/Sales
Market Outlook
July 22, 2013
Hindustan Zinc (CMP: 104/ TP: Under review/ Upside: -)

Hindustan Zincs (HZL) 1QFY2014 results were in line with our expectations. HZLs
net revenue increased by 8.4% yoy to `2,939cr (in line with our estimate of
`2,916cr) mainly due to increased sales volumes of zinc and silver. Refined zinc
production volumes increased 10.0% yoy to 173kt and refined silver production
volumes grew 31.0% yoy to 96kt due to higher production from Sindesur Khurd
mine and new Dariba lead and silver capacities. EBITDA margin contracted by
153bp yoy to 51.1% mainly on account of 2.0% yoy increase in cost of production
to `46,765/tonne. Cost of production increased primarily due to lower sulphuric
acid credits and higher excavation costs, partially offset by lower coal price, lower
specific coal consumption and benefits of higher volume. Mining royalty as a
percentage to sales increased to 8.6% compared to 7.5% in 1QFY2013 while
other operating income also increased by 27.7% yoy to `45cr. Hence, EBITDA
increased by 5.2% yoy to `1,503cr. Adjusted net profit grew by 5.0% yoy to
`1,661cr (in line with our estimate of `1,617cr). We maintain our Buy rating on
the stock while keep our target price under review.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
March
P/BVEV/EBITDA EV/Sales
(`cr)
(%)
(`cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2014E 12,198
46.6
6,159
14.6
17.8
7.1
1.2
3.0
1.4
FY2015E 12,994
51.6
7,120
16.9
17.9
6.2
1.0
1.8
1.0
Federal Bank (CMP: `381 / TP: - / Upside: - )

Federal Bank announced a weak set of numbers. On the operating front, Net
Interest Income (NII) grew marginally by 3.7% yoy to `510cr. But non-interest
income grew strong by 73.6% yoy at `216cr, primarily boosted by treasury gains.
Operating expenses of the bank grew by 20.6% yoy to `325cr. Thus backed by
non-interest income, pre provisioning profit grew by healthy 15.6% at `401cr.
Provisioning expense came in 290% yoy higher at `245cr, which resulted in 44.5%
yoy earnings de-growth. On the asset quality front gross and net NPA levels went
down sequentially by 4.6% and 13.5% respectively. We await further clarity from
the management regarding the asset quality performance and the sharp increase
in provisioning expenses during the quarter. At the CMP, the stock trades at a
valuation of 0.9x FY2014E ABV and 0.8x FY2015E. We maintain our Neutral
recommendation on the stock.
Y/E
March
Op. Inc
NIM
PAT
EPS
ABV
ROA
ROE
P/E
P/ABV
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2014E
2,802
2.9
851
410.5
9.5
1.1
12.7
7.6
0.9
FY2015E
3,275
2.9
968
454.9
10.5
1.1
13.1
6.7
0.8
UCO Bank (CMP: `69 / TP: `63 / Downside: -8.9%)

UCO Bank announced modest set of numbers. On the operating front, the bank
reported strong Net Interest Income (NII) growth of 30.7% yoy to `1,364cr. Noninterest income grew to `462cr, registering growth of 98.4%. Operating expenses
of the bank grew moderate by 13.3% yoy at `562cr, thus enabling bank to
achieve pre-provision operating profit growth of 62.0% yoy at `1,264cr. Asset
quality concerns for the bank continued even in this quarter. Gross NPA ratio at
Market Outlook
July 22, 2013
increased by 16bp to reach 5.58%, while net NPA ratio was at 3.15% in spite of
81.3% higher provisioning of ` 741cr in this quarter. At the CMP, the stock trades
at a valuation of 0.9x FY2014E ABV and 0.8x FY2015E. We maintain our Reduce
recommendation on the stock.
Y/E
Op. Inc
NIM
PAT
EPS
ABV
ROA
ROE
P/E
P/ABV
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2014E
6,545
2.7
1,283
14.8
80.2
0.6
14.3
5.0
0.9
FY2015E
6,859
2.6
1,354
15.7
97.2
0.6
13.6
4.7
0.8
March
Hexaware (CMP: `107/ TP: Under review)

For 2QCY2013, Hexaware reported broadly in-line set of results on the revenue
front but exceeded expectations on the operating margin as well as on the bottomline front. The USD revenue came in at US$94.8mn, up 0.8% qoq, aided by
volume growth of 1.5% qoq. In INR terms, revenue came in at `537cr, up 5.7%.
The companys EBITDA margin grew by ~440bp qoq to 23.7% on account of
operational efficiency. PAT stood tall at `98cr, up 23.5% qoq, aided by gains due
to strong operation performance. Management has given 3QCY2013 revenue
guidance of US$98.1-100mn implying a qoq growth of 3.5-5.5%, which is higher
than our expectation. Strong margin performance during the quarter coupled with
better than expected guidance for next quarter would result in upgrade of our
estimates of CY2013. Overall a strong set of results and we continue to remain
positive on the stock with target price currently under review.
Y/E
March
Sales OPM
(` cr)
PAT
EPS ROE
(`)
P/E P/BV
EV/EBITDA
EV/Sales
(%)
(` cr)
(%)
(x)
(x)
(x)
(x)
CY2013E
2,158 19.6
323
10.7 23.0
9.9
2.2
6.5
1.3
CY2014E
2,374 19.8
353
11.7 22.3
9.1
2.0
5.7
1.1
Siyaram Silk Mills (CMP: `242/ TP: ` 311/ Upside: 28%)

For 1QFY2014, Siyaram Silk Mills (SSM) reported numbers mixed set of numbers.
The company's top line grew substantially by 22.1% yoy to `251cr for the quarter,
9.5% above with our estimate of `229cr. However, the company disappointed on
the operating margin front. On yoy basis, the operating margin dipped by 88bp
and came in at 10.3% for the quarter against our estimate of 11.2% mainly due to
higher than expected raw material cost as a per cent of net sales and higher
employee cost. Interest outgo for the quarter was `7cr, in-line with our estimate;
however, depreciation cost for the quarter stood at `7cr, higher than our estimate
of `5cr. Tax for the quarter stood at `5cr against our estimate of `7cr.
Consequently, the company reported a bottomline of `11cr, 4.1% higher yoy,
against our estimate of `10cr.
The company is on expansion mode and plans to add 50 looms and 100 garment
machines in FY2014E. Also, the company has signed 27 franchise agreements in
the first two months of FY2014 out of targeted 90 for the full year for
strengthening and improving brand visibility. At CMP of `242, the stock is trading
at a PE of 3.1x FY2015E earnings. We maintain our Buy recommendation on the
Market Outlook
July 22, 2013
stock with a revised target price of `311 based on a target P/E of 4.0x for
FY2015E.
Y/E
Sales
OPM
PAT
EPS
March
(` cr)
(%)
(` cr)
(`)
ROE P/E
(%)
P/BV
EV/EBITDA
EV/Sales
(x)
(x)
(x)
(x)
FY2014E
1,158
10.8
58
62.1
17.2 3.9
0.6
0.4
3.9
FY2015E
1,322
11.2
73
77.8
18.4 3.1
0.5
0.4
3.3
Result Preview
L&T (CMP: `975/TP: `1,180 /Upside: 21%)
For 1QFY2014, owing to a large order book (~`1.54trillion) and robust order
inflows in the past couple of quarters, we expect Larsen & Toubro (L&T) to record a
revenue of `13,100cr, indicating a growth of 9.6% yoy. On the EBITDA front, we
expect the company's margin to witness an expansion of 141bp yoy to 10.5%. We
project the net profit to come in at `911cr for 1QFY2014, registering a growth of
1.6% yoy. We estimate the company's order inflow to be at ~`30,000cr for the
quarter, which is in-line with the Management's guidance of 20% growth in order
book for the full year.
At the CMP, the stock is trading at 16.6x FY2015E earnings and 2.5x FY2015E
P/BV, on a standalone basis. 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 `1,180. We continue to recommend Buy
rating on the stock.
Y/E
Sales
March
(` cr)
FY2014E 68,396
FY2015E 77,435
OPM
(%)
10.5
10.5
PAT
(` cr)
4,768
5,408
EPS
(`)
51.7
58.6
ROE
(%)
15.6
16.0
P/E
(x)
18.9
16.6
P/BVEV/EBITDA EV/Sales
(x)
(x)
(x)
2.8
9.4
1.0
2.5
8.4
0.9
Asian Paints (CMP:`5,164/TP:-/Upside:-)

Asian Paints is expected to declare its 1QFY2014 results today. We expect the topline to grow by 11.7% yoy to `2,836cr. OPM is expected to decline by 134bp yoy
to 15.9%. Bottom-line is expected to remain flat at `290cr. We maintain our
Neutral recommendation 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)
FY2014E
12,332
16.5 1,353 141.1
35.6
36.6
11.8
23.6
3.9
FY2015E
14,524
16.3 1,559 162.5
32.7
31.8
9.3
20.1
3.3
Market Outlook
July 22, 2013
Quarterly Bloomberg Consensus Estimate

Asian Paints Consolidated (22/07/2013)
Particulars (` cr)
1QFY14E
1QFY13
y-o-y (%)
4QFY13
q-o-q (%)
2,836
2,539
11.7
2,714
4.5
EBITDA
492
447
10.1
393
25.1
EBITDA margin (%)
17.3
17.6
Net profit
310
288
7.6
251
23.6
1QFY14E
1QFY13
y-o-y (%)
4QFY13
q-o-q (%)
13,487
11,955
12.8
20,294
(33.5)
1,280
1,087
17.8
2,451
(47.8)
EBITDA margin (%)
9.5
9.1
Net profit
922
864
Net sales
14.5
Larsen & Toubro (22/07/2013)

Particulars (` cr)
Net sales
EBITDA
12.1
6.7
1,769
(47.9)
Shriram Transport Finance Company (23/07/2013)

Particulars (` cr)
1QFY14E
1QFY13
y-o-y (%)
4QFY13
q-o-q (%)
370
322
14.8
355
4.0
2QCY13E
2QCY12
y-o-y (%)
1QCY13
q-o-q (%)
2,429
2,566
(5.3)
2,545
(4.5)
EBITDA
540
735
(26.5)
553
(2.3)
EBITDA margin (%)
22.2
28.6
Net profit
348
469
Net profit
Ambuja Cement (24/07/2013)

Particulars (` cr)
Net sales
21.7
(25.8)
488
(28.7)
Dabur India Consolidated (24/07/2013)

Particulars (` cr)
1QFY14E
1QFY13
y-o-y (%)
4QFY13
q-o-q (%)
1,659
1,462
13.5
1,531
8.4
EBITDA
253
216
17.3
273
(7.3)
EBITDA margin (%)
15.3
14.8
Net profit
187
149
25.1
201
(6.8)
1QFY14E
1QFY13
y-o-y (%)
4QFY13
q-o-q (%)
Net sales
17.8
Hero Moto Corp (24/07/2013)

Particulars (` cr)
Net sales
6,270
6,208
1.0
6,073
3.3
EBITDA
823
937
(12.1)
850
(3.1)
EBITDA margin (%)
13.1
15.1
Net profit
551
616
14.0
(10.6)
574
(4.1)
United Phosphorous Consolidated (24/07/2013)

Particulars (` cr)
1QFY14E
1QFY13
y-o-y (%)
4QFY13
q-o-q (%)
2,537
2,180
16.4
2,773
(8.5)
EBITDA
452
386
17.0
537
(15.9)
EBITDA margin (%)
17.8
17.7
Net profit
221
203
Net sales
19.4
8.7
278
(20.8)
Market Outlook
July 22, 2013
Yes Bank Ltd (24/07/2013)

Particulars (` cr)
1QFY14E
1QFY13
y-o-y (%)
4QFY13
q-o-q (%)
372
290
28.3
362
2.8
Net profit
Economic and Political News
India will sell `23,600cr in debt quotas to foreign investors

Gas output to jump 66% by 2016-17: Moily
More FDI reforms, bank licences on anvil: PM
Growth target of 6.5% looks difficult: PM
Corporate News
NTPC power trading arm to supply 300 MW electricity to Kerala

VA Tech bags `344cr order from Philippines
LIC Housing Finance plans to raise `28,000cr in current fiscal
RIL's $1.5bn gas field development plan approved: Moily
Govt slaps show-cause notices on 27 more coal block allottees
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
Market Outlook
July 22, 2013
Result Calendar
Date
Company
July 22, 2013
Larsen & Toubro, Asian Paints, Blue Star
July 23, 2013
Shriram Trans., KPIT Cummins, Tata Sponge
July 24, 2013
Cairn India, Hero Motocorp, Ambuja Cements, Dabur India, Yes Bank, United Phosphorus, Central Bank
July 25, 2013
ITC, GAIL, Sterlite Inds, Maruti, ACC, IOB, Thermax, FAG Bearings, MRF, TTK Healthcare
July 26, 2013
Wipro, Nestle, Punjab Natl.Bank, Tata Comm, CESC
July 27, 2013
Corporation Bank, Force Motors
July 28, 2013

July 29, 2013
UltraTech Cement, IDFC, Colgate, Godrej Consumer, Madras Cements, Subros, Vesuvius India
July 30, 2013
NTPC, Dr Reddy's, Petronet LNG, Syndicate Bank, Ipca labs, Indoco Remedies
July 31, 2013
Bharti Airtel, ICICI Bank, NHPC, JSW Steel , Dishman Pharma
August 01, 2013
Idea Cellular, Mundra Port, Adani Power, GlaxoSmith Con
August 02, 2013
Siemens
August 03, 2013
Coal India, PTC India
August 04, 2013

August 05, 2013
Tata Chemicals, LMW, GIPCL
August 06, 2013
Tata Power Co.
August 07, 2013
Ranbaxy, Apollo Tyres
August 08, 2013
Adani Enterp., Rural Elec.Corp.
Source: Bloomberg, Angel Research
Global economic events release calendar

Date
Time
Country Event Description
Unit
Period
Bloomberg Data
Last Reported Estimated
July 22, 2013
7:30PM
US
Million
Jun
5.18
5.24
July 23, 2013
7:30PM
Euro Zone Euro-Zone Consumer Confidence
Value
Jul A
(18.80)
--
July 24, 2013
1:00PM
Germany PMI Services
Value
Jul A
50.40
--
1:00PM
Germany PMI Manufacturing
Value
Jul A
48.60
--
7:30PM
US
New home sales
Thousands
Jun
476.00
484.00
July 25, 2013
2:00PM
UK
GDP (YoY)
% Change
2Q A
0.30
--
July 30, 2013
11:00AM
India
RBI Repo rate
Jul 30
7.25
--
11:00AM
India
RBI Cash Reserve ratio
Jul 30
4.00
--
11:00AM
India
RBI Reverse Repo rate
Jul 30
6.25
--
7:30PM
US
Consumer Confidence
S.A./ 1985=100
Jul
81.40
--
1:25PM
Germany Unemployment change (000's)
Thousands
Jul
(12.00)
--
July 31, 2013
Existing home sales
6:00PM
US
GDP Qoq (Annualised)
% Change
2Q A
1.80
--
11:30PM
US
FOMC rate decision
Jul 31
0.25
--
6:30AM
China
PMI Manufacturing
Value
Jul
50.10
--
2:00PM
UK
PMI Manufacturing
Value
Jul
52.50
--
4:30PM
UK
BOE Announces rates
% Ratio
Aug 1
0.50
0.50
5:15PM
Euro Zone ECB announces interest rates
6:00PM
US
Change in Nonfarm payrolls
6:00PM
US
Unnemployment rate
August 6, 2013
2:00PM
UK
August 8, 2013
4:29PM
China
August 1, 2013
August 2, 2013
Aug 1
0.50
--
Thousands
Jul
195.00
--
Jul
7.60
--
Industrial Production (YoY)
% Change
Jun
(2.30)
--
Exports YoY%
% Change
Jul
(3.10)
--
Market Outlook
July 22, 2013
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
10.0
11.4
6.0
4.0
0.6
Exhibit 4: Manufacturing and services PMI
(%)
Mfg. PMI
58.0
8.1
7.3
7.2
May-13
Source: MOSPI, Angel Research
Exhibit 3: Monthly WPI inflation trends

8.0
(1.6)
Apr-13
Jul-12
Jun-12
4QFY13
3QFY13
2QFY13
1QFY13
4QFY12
3QFY12
2QFY12
1QFY12
4QFY11
3QFY11
2QFY11
1QFY11
4QFY10
3QFY10
(4.0)
(1.0) (0.6)
(0.7)
(2.0)
Feb-13
(0.1)
(2.0)
Jan-13
4.7 4.8
Source: CSO, Angel Research
7.3
7.3
7.3
Services PMI
56.0
5.7
4.8
5.0
4.7
4.9
4.0
3.0
2.0
1.0
0.0
54.0
52.0
Source: MOSPI, Angel Research
(%)
May-13
Apr-13
Mar-13
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
Jun-12
May-12
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Exhibit 5: Exports and imports growth trends

Exports yoy growth
15.0
48.0
Apr-12
Jun-13
May-13
Apr-13
Mar-13
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
50.0
Mar-12
9.0
8.0
7.0
6.0
1.9
2.0
5.1 5.4 5.2
Dec-12
6.0
3.4
2.5
2.0
Nov-12
6.5
Mar-13
7.5
Oct-12
9.2
7.7
Sep-12
8.6
8.4
8.0
9.9
Aug-12
9.5
9.3
2QFY10
12.0
11.0
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
Exhibit 6: Key policy rates

Repo rate
(%)
9.00
Imports yoy growth
Reverse Repo rate
CRR
8.00
7.00
6.00
4.00
Source: RBI, Angel Research
Jul-13
Jun-13
May-13
Apr-13
Mar-13
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
3.00
Sep-12
Jun-13
May-13
Apr-13
Mar-13
Feb-13
Jan-13
5.00
Aug-12
(15.0)
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
0.0
Market Outlook
July 22, 2013
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
Sales ( cr )
FY14E
OPM(%)
EPS ( )
FY15E
FY14E
FY15E
FY14E
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
Agri / Agri Chemical

Rallis
Neutral
152
2,956
1,657
1,906
14.1
14.1
7.7
8.9
19.7
17.1
4.1
3.5
22.2
21.9
1.7
1.5
United Phosphorus
Buy
147
232
6,509
10,298
11,310
16.5
16.5
20.5
23.2
7.2
6.3
1.2
1.0
18.0
17.4
0.6
0.5
Amara Raja Batteries
Accumulate
248
285
4,238
3,418
3,892
14.5
14.5
18.5
20.4
13.4
12.2
3.2
2.6
26.6
23.8
1.3
1.1
Apollo Tyres
Neutral
71
3,556
13,852
15,487
11.4
11.5
12.8
14.9
5.5
4.7
0.9
0.8
17.5
17.3
0.4
0.4
Ashok Leyland
Buy
15
22
4,058
13,450
15,853
6.5
8.5
0.4
1.9
39.9
8.2
1.3
1.2
2.3
11.0
0.4
0.3
Automotive Axle#
Neutral
199
301
834
965
9.3
10.6
17.3
27.1
11.5
7.4
1.1
1.0
9.5
14.0
0.4
0.4
Bajaj Auto
Accumulate
1,967
2,096
56,920
23,005
26,460
18.0
18.5
118.8
139.7
16.6
14.1
6.0
4.7
40.4
37.7
2.1
1.7
Bharat Forge
Neutral
223
5,183
6,198
6,793
14.6
14.9
14.5
17.3
15.3
12.9
2.0
1.8
13.6
14.7
1.0
0.8
Bosch India*
Accumulate
8,673
9,213
27,231
9,821
11,394
17.0
17.3
373.5
438.7
23.2
19.8
4.2
3.5
18.0
17.9
2.5
2.1
CEAT
Buy
117
170
400
5,325
5,974
8.4
8.3
40.8
48.5
2.9
2.4
0.5
0.4
17.3
17.6
0.2
0.2
Exide Industries
Accumulate
135
148
11,441
6,899
7,873
14.7
14.7
7.9
9.0
17.0
14.9
2.9
2.5
18.3
18.0
1.3
1.1
FAG Bearings*
Neutral
1,444
2,399
1,525
1,742
14.5
15.7
88.4
109.5
16.3
13.2
2.4
2.0
15.5
16.5
1.4
1.2
Hero Motocorp
Neutral
1,772
35,388
25,298
27,665
14.1
13.7
110.3
140.0
16.1
12.7
5.9
4.6
39.9
40.7
1.2
1.0
JK Tyre
Buy
104
154
426
7,972
8,754
7.1
7.1
37.5
44.0
2.8
2.4
0.4
0.4
16.4
16.6
0.3
0.3
Auto & Auto Ancillary
Mahindra and Mahindra Buy
878
1,103
54,103
45,254
51,197
11.4
11.7
61.2
70.2
14.4
12.5
3.0
2.5
22.7
21.9
0.9
0.8
1,450
1,822
43,811
47,923
55,002
11.2
10.9
106.6
121.4
13.6
11.9
2.0
1.8
16.1
15.8
0.7
0.6
222
13,021
28,442
31,493
7.5
7.8
12.5
14.8
17.7
15.0
4.4
3.5
27.5
25.8
0.6
0.5
Buy
21
27
128
1,426
1,624
10.0
9.9
4.9
6.8
4.4
3.1
0.4
0.4
10.0
12.7
0.4
0.3
Tata Motors
Buy
295
347
79,395 215,016 237,404
13.3
13.6
36.2
41.5
8.1
7.1
1.8
1.5
24.6
23.2
0.4
0.4
TVS Motor
Accumulate
32
35
1,532
7,715
8,584
6.0
6.1
5.0
5.8
6.5
5.6
1.1
1.0
18.1
18.5
0.1
0.1
Maruti
Buy
Motherson Sumi
Neutral
Subros
Capital Goods
ABB*
Sell
581
461
12,315
8,073
9,052
5.5
6.9
11.5
16.9
50.4
34.3
4.6
4.4
9.3
13.1
1.5
1.3
BGR Energy
Buy
119
140
857
3,756
4,569
11.4
9.7
21.7
24.1
5.5
4.9
0.7
0.6
22.3
20.3
0.5
0.5
BHEL
Neutral
174
42,527
44,054
39,326
16.8
15.1
20.6
16.1
8.4
10.8
1.8
1.7
23.5
16.1
0.8
0.9
Blue Star
Buy
155
230
1,392
2,896
3,087
5.6
6.2
9.3
11.7
16.6
13.2
2.7
2.4
17.6
19.2
0.5
0.5
Crompton Greaves
Buy
88
117
5,629
13,446
15,272
6.7
7.6
6.6
8.9
13.2
9.9
1.5
1.3
11.4
14.0
0.5
0.5
Jyoti Structures
Neutral
19
159
3,360
3,597
9.7
9.8
7.3
10.2
2.6
1.9
0.5
0.5
8.8
11.4
0.3
0.3
KEC International
Buy
34
49
883
7,709
8,399
6.7
7.2
6.1
8.5
5.7
4.0
0.7
0.6
20.2
23.0
0.3
0.3
Thermax
Neutral
603
7,179
5,780
6,430
9.5
9.6
29.8
33.0
20.2
18.3
3.4
3.0
17.9
17.4
1.1
0.9
1,276
1,361
23,964
11,820
13,254
19.3
20.9
74.9
93.1
17.1
13.7
3.0
2.7
18.1
20.3
1.7
1.5
Cement
ACC
Accumulate
Market Outlook
July 22, 2013
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
( )
Price ( )
( cr )
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
Cement
Ambuja Cements
Neutral
208
32,053
10,171
11,762
23.5
24.6
10.2
12.2
20.4
17.0
3.3
3.0
17.1
18.7
2.6
2.2
India Cements
Neutral
57
1,762
4,929
5,434
17.4
17.1
8.9
10.9
6.4
5.3
0.5
0.5
7.7
9.1
0.7
0.6
J K Lakshmi Cement
Buy
76
143
900
2,247
2,742
21.0
23.1
17.8
21.8
4.3
3.5
0.6
0.5
15.5
16.4
0.3
0.8
Madras Cements
Neutral
200
4,753
4,234
4,788
23.9
24.0
18.5
22.8
10.8
8.8
1.7
1.5
17.2
18.2
1.5
1.2
Shree Cement^
Neutral
4,436
15,453
6,607
7,520
27.5
26.7
322.8
374.3
13.7
11.9
3.4
2.7
27.8
25.6
1.7
1.3
UltraTech Cement
Neutral
1,934
53,015
21,947
25,049
23.8
23.8
106.1
119.8
18.2
16.1
3.0
2.6
17.7
17.3
2.5
2.1
55
84
863
1,928
2,234
21.0
21.5
6.0
7.4
9.1
7.4
0.8
0.8
10.5
10.8
1.8
1.8
160
1,715
1,824
2.4
6.2
(2.9)
(0.4)
(3.0)
(24.0)
0.3
0.4
0.5
0.5
Construction
Ashoka Buildcon
Buy
Consolidated Co
Neutral
IRB Infra
Buy
94
157
3,118
3,997
4,312
45.5
46.4
15.7
16.6
6.0
5.6
0.9
0.8
15.2
14.5
3.2
3.5
ITNL
Buy
145
230
2,810
7,444
8,041
27.4
28.9
29.8
32.1
4.9
4.5
0.7
0.6
14.9
14.2
2.5
2.5
IVRCL Infra
Buy
15
29
470
5,673
5,892
8.1
8.4
1.4
1.8
10.6
8.3
0.2
0.2
2.0
2.6
0.5
0.5
Jaiprakash Asso.
Buy
50
90
11,007
14,850
15,631
24.9
25.1
2.5
2.9
19.6
17.4
0.8
0.8
4.2
4.7
2.6
2.5
Larsen & Toubro
Buy
975
1,180
90,148
68,946
78,040
10.5
10.5
51.7
58.6
18.9
16.6
2.8
2.5
15.5
15.6
1.4
1.3
Nagarjuna Const.
Buy
26
42
675
6,167
6,945
8.0
8.2
2.7
3.6
9.8
7.2
0.3
0.3
2.7
3.6
0.5
0.4
Punj Lloyd
Neutral
32
1,046
12,954
14,740
9.9
9.9
0.5
0.9
62.1
33.8
0.4
0.4
0.6
1.1
0.5
0.5
Sadbhav Engg.
Buy
87
139
1,318
2,462
2,731
10.6
10.6
5.9
6.7
14.8
13.1
1.5
1.3
10.2
10.5
0.8
0.8
Simplex Infra
Buy
70
131
346
6,308
7,033
9.5
9.6
11.9
18.7
5.9
3.7
0.3
0.2
4.5
6.7
0.5
0.5
Unity Infra
Buy
24
41
180
2,146
2,339
13.7
13.8
11.0
11.5
2.2
2.1
0.2
0.2
9.3
9.0
0.6
0.6
Allahabad Bank
Accumulate
85
95
4,230
6,705
7,535
2.5
2.5
27.6
33.2
3.1
2.6
0.4
0.4
12.5
13.6
Andhra Bank
Neutral
78
4,348
5,180
5,815
2.7
2.7
19.0
22.9
4.1
3.4
0.5
0.5
12.0
13.2
Axis Bank
Buy
1,191
1,498
55,838
19,237
23,261
3.2
3.2
133.8
161.5
8.9
7.4
1.5
1.3
17.6
18.5
Bank of Baroda
Accumulate
570
642
23,999
16,287
18,707
2.2
2.3
120.6
144.6
4.7
3.9
0.7
0.6
15.0
16.0
Bank of India
Accumulate
211
236
12,600
14,459
16,176
2.3
2.2
55.2
68.2
3.8
3.1
0.5
0.5
13.7
15.1
Bank of Maharashtra
Accumulate
49
54
3,264
4,291
4,724
3.0
3.0
12.1
12.9
4.1
3.8
0.6
0.6
16.2
15.3
Canara Bank
Neutral
319
14,127
12,045
13,495
2.1
2.2
76.7
86.4
4.2
3.7
0.6
0.5
14.1
14.2
Central Bank
Neutral
63
6,597
8,406
9,546
2.5
2.5
12.6
18.7
5.0
3.4
0.6
0.6
10.6
14.3
Corporation Bank
Buy
327
379
4,994
5,554
6,156
2.0
2.0
94.9
104.9
3.4
3.1
0.5
0.4
14.3
14.2
Dena Bank
Neutral
68
2,366
3,255
3,623
2.3
2.4
22.0
24.9
3.1
2.7
0.4
0.4
14.7
14.7
Federal Bank
Accumulate
381
409
6,522
2,802
3,275
2.9
2.9
49.8
56.6
7.7
6.7
0.9
0.8
12.7
13.1
Financials
Market Outlook
July 22, 2013
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
Financials
HDFC
Accumulate
804
906
124,874
8,679
10,350
3.6
3.6
37.5
44.7
21.4
18.0
4.5
4.0
30.1
30.7
HDFC Bank
Accumulate
681
752
162,625
27,560
33,766
4.6
4.6
36.3
45.1
18.8
15.1
3.8
3.2
21.9
22.8
ICICI Bank
Buy
959
1,219
110,686
26,119
30,474
3.1
3.2
86.2
99.5
11.1
9.6
1.5
1.4
15.7
16.2
IDBI Bank
Neutral
70
9,309
9,416
10,392
2.0
2.0
19.8
22.8
3.5
3.1
0.4
0.4
12.9
13.5
Indian Bank
Accumulate
107
113
4,616
6,077
6,845
2.9
3.0
35.2
41.0
3.1
2.6
0.4
0.4
14.1
14.8
IOB
Neutral
47
4,380
8,028
9,204
2.4
2.6
12.5
19.7
3.8
2.4
0.4
0.3
9.1
13.1
J & K Bank
Neutral
1,250
6,060
3,101
3,427
3.6
3.6
215.5
210.3
5.8
6.0
1.1
1.0
19.9
16.9
LIC Housing Finance
Buy
209
244
10,522
2,180
2,732
2.4
2.5
26.3
32.1
7.9
6.5
1.4
1.2
19.0
19.9
Oriental Bank
Buy
174
203
5,068
6,790
7,676
2.6
2.7
55.7
62.3
3.1
2.8
0.4
0.4
12.8
12.9
Punjab Natl.Bank
Accumulate
631
718
22,306
20,914
23,879
3.3
3.4
152.4
176.2
4.1
3.6
0.7
0.6
16.2
16.5
South Ind.Bank
Neutral
St Bk of India
Buy
Syndicate Bank
Accumulate
UCO Bank
Neutral
Union Bank
Buy
United Bank
Accumulate
Vijaya Bank
Yes Bank
23
3,069
1,800
2,023
2.7
2.7
3.7
4.2
6.2
5.5
1.0
0.9
16.2
16.2
1,814
2,126
124,091
66,417
76,734
3.0
3.0
227.4
284.8
8.0
6.4
1.2
1.0
15.4
17.1
111
121
6,697
7,125
8,188
2.6
2.6
27.4
27.9
4.1
4.0
0.6
0.6
16.2
14.6
69
5,223
6,545
6,859
2.7
2.6
14.8
15.7
4.7
4.4
0.9
0.7
14.4
13.6
157
186
9,376
11,101
12,543
2.6
2.6
39.3
47.4
4.0
3.3
0.6
0.5
14.1
15.2
46
51
1,722
3,386
3,884
2.3
2.5
12.4
20.0
3.7
2.3
0.4
0.3
10.0
14.7
Accumulate
45
47
2,210
2,714
3,046
1.9
2.0
9.2
10.8
4.8
4.1
0.5
0.5
10.7
11.5
Accumulate
425
453
15,277
4,451
5,526
2.8
2.8
43.0
49.7
9.9
8.5
2.2
1.8
23.9
22.8
FMCG
Asian Paints
Neutral
5,164
49,535
12,332
14,524
16.5
16.3
141.1
162.5
36.6
31.8
11.8
9.3
35.7
32.7
3.9
3.3
Britannia
Neutral
711
8,507
6,417
7,502
6.1
6.3
21.3
25.5
33.4
27.9
10.9
8.7
35.7
34.6
1.3
1.1
Colgate
Neutral
1,494
20,319
3,588
4,130
20.5
20.9
44.2
51.8
33.8
28.9
32.9
24.0
108.6
96.2
5.5
4.7
Dabur India
Neutral
168
29,276
7,183
8,340
16.8
16.8
5.4
6.3
31.3
26.7
12.2
9.5
41.5
40.1
4.0
3.4
GlaxoSmith Con*
Neutral
5,283
22,218
3,617
4,259
16.1
16.4
122.2
148.7
43.2
35.5
13.5
10.8
34.1
33.7
5.7
4.7
Godrej Consumer
Neutral
953
32,418
7,801
9,017
16.2
15.9
25.1
29.7
37.9
32.1
8.2
6.8
24.9
24.2
4.3
3.7
HUL
Neutral
687
148,475
29,167
33,164
13.6
13.7
17.1
18.4
40.2
37.3
38.6
28.0
113.4
87.0
5.0
4.3
ITC
Neutral
369
291,730
34,294
39,991
36.8
37.0
11.3
13.3
32.7
27.7
10.8
8.7
36.1
34.9
8.2
7.0
Marico
Neutral
219
14,151
5,273
6,044
14.8
14.9
7.3
8.7
30.2
25.3
5.9
4.9
21.4
21.0
2.7
2.4
Nestle*
Neutral
5,720
55,150
9,447
10,968
22.1
22.3
127.5
154.1
44.9
37.1
22.4
16.2
57.7
50.7
5.9
5.0
Tata Global
Neutral
156
9,628
8,069
8,957
9.8
9.7
7.8
8.6
19.9
18.2
2.4
2.3
9.5
9.7
1.2
1.0
Market Outlook
July 22, 2013
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
( )
Price ( )
( cr )
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
IT
HCL Tech^
Neutral
893
62,196
29,424
32,837
22.6
22.0
59.5
63.3
15.0
14.1
3.6
3.0
24.6
21.7
1.9
1.7
Hexaware*
Neutral
107
3,186
2,158
2,374
19.6
19.8
10.7
11.7
10.0
9.1
2.2
2.0
23.0
22.3
1.3
1.2
Infosys
Neutral
2,846
163,416
45,153
48,993
27.6
26.8
170.7
187.5
16.7
15.2
3.5
3.0
20.8
19.5
3.0
2.6
Infotech Enterprises
Accumulate
178
190
1,987
2,037
2,254
17.9
17.7
21.2
22.6
8.4
7.9
1.3
1.1
15.2
14.1
0.6
0.5
KPIT Cummins
Accumulate
130
144
2,517
2,614
2,923
17.2
16.8
13.2
14.4
9.9
9.0
1.8
1.5
18.5
16.7
0.9
0.7
Mindtree
Neutral
943
3,917
2,707
2,978
20.3
20.2
87.4
97.0
10.8
9.7
2.3
1.9
21.8
19.5
1.2
1.0
Mphasis&
Neutral
408
8,564
6,372
6,852
18.0
18.2
38.0
43.5
10.7
9.4
1.5
1.3
14.3
14.2
0.9
0.7
NIIT
Buy
18
30
295
1,144
1,267
9.0
9.1
4.3
5.4
4.2
3.3
0.4
0.4
10.3
12.0
Persistent
Accumulate
528
565
2,110
1,505
1,677
25.9
26.2
53.6
59.7
9.8
8.8
1.7
1.5
17.7
16.7
1.0
0.8
TCS
Reduce
1,742
1,640
340,928
74,795
84,926
28.8
28.7
82.2
91.5
21.2
19.1
6.5
5.4
30.8
28.1
4.3
3.8
Tech Mahindra
Accumulate
1,131
1,250
26,257
8,102
8,709
19.7
19.2
93.7
101.5
12.1
11.1
2.2
1.8
21.2
18.9
3.3
2.9
Wipro
Neutral
391
96,287
41,659
45,137
21.2
21.4
27.7
29.9
14.1
13.1
2.9
2.5
20.5
19.0
1.8
1.5
D B Corp
Accumulate
265
302
4,854
1,783
1,968
25.2
26.8
14.6
17.2
18.2
15.4
4.7
4.0
23.9
24.2
2.6
2.3
HT Media
Buy
96
117
2,254
2,205
2,380
15.1
15.6
8.3
9.1
11.6
10.5
1.3
1.1
11.5
11.4
0.7
0.6
Jagran Prakashan
Buy
90
107
2,971
1,664
1,825
20.9
23.0
6.4
7.8
13.9
11.5
2.8
2.5
21.0
23.1
1.9
1.7
PVR
Neutral
345
1,369
1,359
1,540
17.3
17.4
17.2
21.6
20.0
16.0
2.0
1.8
10.3
12.0
1.4
1.3
Sun TV Network
Neutral
401
15,803
2,287
2,551
69.7
70.5
20.0
23.3
20.0
17.2
5.0
4.3
26.4
27.3
6.6
5.8
Bhushan Steel
Neutral
464
10,507
13,794
17,088
30.9
33.5
49.3
66.6
9.4
7.0
1.0
0.9
11.3
13.5
2.4
1.9
Coal India
Buy
296
345
187,122
72,174
76,311
33.3
28.4
28.4
30.9
10.4
9.6
2.9
2.5
37.6
36.2
1.8
1.6
Electrosteel Castings
Buy
12
18
405
1,976
2,017
11.8
12.7
1.3
2.6
9.8
4.8
0.1
0.1
2.6
5.2
0.5
0.1
GMDC
Buy
104
155
3,309
1,920
2,239
53.2
52.9
21.6
25.0
4.8
4.2
1.1
0.9
25.1
23.8
1.2
0.9
Hind. Zinc
Buy
104
145
44,028
12,358
13,659
51.4
51.6
16.0
17.6
6.5
5.9
1.2
1.0
19.4
18.4
1.3
0.8
Hindalco
Neutral
104
19,826
89,352
93,672
8.8
9.2
13.4
15.0
7.7
6.9
0.6
0.5
7.3
7.6
0.6
0.5
JSW Steel
Neutral
570
13,778
47,613
48,385
17.4
18.8
81.8
109.6
7.0
5.2
0.7
0.7
11.1
13.4
0.6
0.5
MOIL
Buy
199
248
3,343
1,010
1,046
46.5
47.6
26.8
28.8
7.4
6.9
1.1
1.0
15.4
14.7
0.9
0.7
Monnet Ispat
Buy
120
193
763
2,326
2,709
21.4
23.1
33.3
43.1
3.6
2.8
0.3
0.3
8.3
9.9
1.3
1.0
Nalco
Neutral
NMDC
Buy
SAIL
Neutral
Media
Metals & Mining
30
7,667
7,656
7,988
13.1
13.5
2.6
2.6
11.7
11.4
0.6
0.6
5.5
5.5
0.4
0.5
107
140
42,581
10,610
11,400
66.3
64.2
15.6
16.1
6.9
6.7
1.4
1.3
21.3
19.9
1.9
1.7
45
18,544
44,060
54,786
9.4
11.5
5.2
7.2
8.6
6.3
0.5
0.4
5.2
6.8
0.7
0.6
Market Outlook
July 22, 2013
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
Sales ( cr )
FY14E
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
Metals & Mining

Sesa Goa
Accumulate
146
166
12,667
3,742
4,426
32.9
32.8
30.0
29.8
4.9
4.9
0.7
0.6
14.3
12.5
4.2
3.4
Sterlite Inds
Buy
83
100
27,843
44,462
45,568
23.2
24.7
18.1
20.2
4.6
4.1
0.5
0.4
11.3
11.4
0.6
0.5
Tata Steel
Buy
241
378
23,411 140,917 151,537
9.7
10.8
30.9
47.6
7.8
5.1
0.7
0.6
9.6
13.4
0.5
0.5
Sarda
Buy
95
153
339
1,494
1,568
19.1
20.3
31.3
36.5
3.0
2.6
0.3
0.3
11.8
12.4
0.6
0.5
Prakash Industries
Godawari Power and
Ispat
Oil & Gas
Buy
30
40
403
2,615
2,776
12.1
12.0
9.8
10.4
3.1
2.9
0.2
0.2
6.5
6.5
0.4
0.4
Buy
74
102
244
2,344
2,509
14.9
15.4
38.7
47.0
1.9
1.6
0.2
0.2
12.3
12.9
0.5
0.4
Cairn India
Accumulate
308
345
58,857
16,482
16,228
69.4
53.3
53.3
49.6
5.8
6.2
0.9
0.8
16.5
13.6
2.2
1.9
GAIL
Neutral
333
42,190
52,102
52,876
15.7
16.1
34.1
35.7
9.8
9.3
1.5
1.3
16.4
15.3
0.3
0.2
ONGC
Buy
316
387
270,610 170,063 198,461
36.3
38.3
34.7
41.9
9.1
7.6
1.6
1.4
18.3
19.5
1.3
1.0
Reliance Industries
Neutral
923
298,136 397,546 421,695
9.4
8.6
75.0
76.4
12.3
12.1
1.3
1.2
12.4
11.4
0.7
0.6
Gujarat Gas*
Neutral
213
2,729
3,707
3,850
11.7
12.4
23.7
25.7
9.0
8.3
2.5
2.2
29.6
28.2
0.6
0.6
Indraprastha Gas
Neutral
293
4,099
3,700
4,218
23.4
22.8
26.7
30.4
11.0
9.6
2.3
1.9
22.7
21.8
1.2
1.0
Petronet LNG
Gujarat State Petronet
Ltd.
Pharmaceuticals
Buy
125
167
9,375
40,356
40,872
5.8
6.4
15.0
16.7
8.3
7.5
1.8
1.5
23.0
21.5
0.3
0.3
Neutral
56
3,168
1,171
1,287
91.9
91.9
10.1
11.3
5.6
5.0
0.9
0.8
17.3
16.8
Alembic Pharma
Neutral
163
3,077
1,736
2,008
17.1
18.9
10.7
13.9
15.3
11.7
4.8
3.6
35.0
34.7
1.8
1.6
Aurobindo Pharma
Buy
174
271
5,058
6,641
7,637
15.9
15.9
17.3
20.6
10.0
8.4
1.6
1.3
19.5
18.9
1.2
1.0
Aventis*
Neutral
2,411
5,552
1,682
1,917
16.6
16.6
92.4
99.1
26.1
24.3
3.7
3.7
15.7
14.8
2.9
2.4
Cadila Healthcare
Buy
775
929
15,862
7,280
8,640
15.5
15.7
38.3
46.5
20.2
16.7
4.3
3.6
23.5
23.5
2.5
2.1
Cipla
Buy
415
477
33,297
9,274
10,796
23.1
23.1
21.0
23.8
19.8
17.4
3.2
2.7
17.2
16.8
3.3
2.8
Dr Reddy's
Accumulate
2,349
2,535
39,934
13,377
15,350
20.4
20.1
112.3
126.8
20.9
18.5
4.5
3.7
23.5
21.8
3.1
2.7
Dishman Pharma
Buy
60
168
482
1,394
1,534
22.5
22.4
15.0
16.8
4.0
3.6
0.4
0.4
11.0
11.2
1.0
0.8
GSK Pharma*
Neutral
2,528
21,412
2,854
3,145
28.6
28.6
76.6
83.3
33.0
30.4
9.9
9.0
31.1
31.0
6.6
6.0
Indoco Remedies
Accumulate
70
78
646
760
922
15.3
15.3
6.1
7.8
11.5
9.0
1.4
1.3
12.9
14.7
1.1
0.9
Ipca labs
Neutral
647
8,164
3,243
3,826
20.5
21.5
36.0
44.4
18.0
14.6
4.2
3.3
26.0
25.4
2.7
2.2
Lupin
Neutral
899
40,247
11,641
13,933
21.3
21.3
34.8
41.8
25.8
21.5
6.1
4.8
26.2
24.8
3.5
2.9
Ranbaxy*
Buy
325
384
13,731
11,400
12,060
10.5
12.5
17.5
22.5
18.5
14.4
3.0
2.6
17.0
19.1
1.2
1.0
Sun Pharma
Neutral
1,080
111,696
13,509
15,846
41.0
41.0
33.0
39.8
32.7
27.1
6.6
5.5
22.0
22.0
7.7
6.4
Power
GIPCL
Buy
NTPC
Accumulate
64
78
968
1,444
1,482
33.4
33.0
13.7
14.8
4.7
4.3
0.5
0.5
12.3
12.0
0.7
0.5
144
163
118,487
76,734
86,680
24.5
24.3
13.4
14.5
10.7
9.9
1.3
1.2
12.8
12.7
2.2
2.1
Market Outlook
July 22, 2013
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
( )
Price ( )
( cr )
FY14E
FY15E
FY14E
FY15E
FY14E
PER(x)
P/BV(x)
RoE(%)
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
EV/Sales(x)
FY15E
FY14E
FY15E
Real Estate
DLF
Buy
168
236
29,945
8,293
9,622
36.5
36.1
5.7
6.7
29.5
25.0
1.1
1.0
3.7
4.1
5.7
4.8
MLIFE
Neutral
461
1,883
888
1,002
30.6
30.6
38.8
43.4
11.9
10.6
1.3
1.2
11.2
11.4
2.7
2.4
Bharti Airtel
Neutral
330
131,934
85,489
94,229
31.9
31.9
10.2
14.6
32.3
22.6
2.3
2.1
7.2
9.4
2.2
1.9
Idea Cellular
Neutral
151
49,899
25,640
28,459
26.9
27.2
4.0
4.9
37.6
30.4
3.2
2.9
8.4
9.4
2.3
2.1
Rcom
Neutral
145
29,959
22,751
24,628
30.9
31.3
3.4
5.3
42.4
27.6
0.9
0.9
2.1
3.1
2.9
2.6
Telecom
Others
Abbott India*
Buy
1,409
1,659
2,993
1,863
2,081
11.8
12.4
71.2
83.0
19.8
17.0
4.0
3.4
21.6
21.5
1.4
1.1
Bajaj Electricals
Buy
180
237
1,795
3,885
4,472
5.4
7.2
11.0
19.7
16.4
9.1
2.2
1.9
13.5
20.3
0.5
0.4
Cera Sanitaryware
Buy
512
613
648
631
797
14.5
13.7
42.6
51.1
12.0
10.0
2.9
2.3
26.5
25.3
1.0
0.8
Cravatex
Buy
250
459
65
248
284
6.5
7.3
27.2
38.2
9.2
6.5
1.5
1.2
15.7
18.5
0.4
0.4
Finolex Cables
Accumulate
65
68
987
2,563
2,899
9.8
9.8
10.1
11.3
6.4
5.7
0.9
0.8
14.3
13.8
0.3
0.3
Force Motors
Buy
250
437
326
2,304
2,649
3.1
3.6
28.0
43.7
8.9
5.7
0.3
0.3
3.1
4.7
0.1
0.1
Goodyear India*
Accumulate
306
345
706
1,458
1,542
8.3
9.0
32.3
37.0
9.5
8.3
1.7
1.5
19.5
19.3
0.3
0.2
Hitachi
Buy
117
177
319
1,053
1,169
6.3
7.1
13.8
17.7
8.5
6.6
1.2
1.0
15.0
16.7
0.3
0.3
Honeywell Automation* Neutral
2,524
2,232
1,842
2,131
7.7
7.8
112.4
132.4
22.5
19.1
2.8
2.5
13.3
13.8
1.1
1.0
IFB Agro
Buy
139
198
125
495
651
12.7
12.9
29.3
39.5
4.7
3.5
0.7
0.6
15.4
17.6
0.4
0.3
ITD Cementation
Buy
147
234
169
1,430
1,573
11.1
11.0
19.1
26.9
7.7
5.5
0.4
0.4
5.4
7.1
0.5
0.5
Jyothy Laboratories
Accumulate
178
199
2,959
1,220
1,476
13.3
13.6
5.5
9.0
32.3
19.7
3.7
3.3
12.1
17.7
2.8
2.2
MRF
Neutral
13,869
5,882
11,799
12,587
14.1
13.5 1,792.4 1,802.0
7.7
7.7
1.6
1.4
23.5
19.2
0.6
0.5
Page Industries
Neutral
4,487
5,004
1,057
1,282
19.4
19.6
124.8
153.7
36.0
29.2
17.8
13.1
56.3
51.8
4.8
4.0
Relaxo Footwears
Accumulate
718
791
862
1,146
1,333
10.9
11.4
45.9
60.9
15.7
11.8
3.3
2.6
23.0
24.6
0.9
0.8
Siyaram Silk Mills
Buy
243
343
228
1,158
1,322
11.9
11.9
72.9
85.7
3.3
2.8
0.6
0.5
19.9
19.6
0.4
0.4
Styrolution ABS India*
Buy
410
617
722
1,068
1,223
9.6
9.6
38.1
44.1
10.8
9.3
1.5
1.3
14.5
14.7
0.7
0.6
TAJ GVK
Buy
59
108
370
300
319
35.8
36.2
7.9
9.1
7.5
6.5
1.0
0.9
13.9
14.4
1.5
1.3
Tata Sponge Iron
Buy
262
371
404
814
849
17.0
17.6
64.6
69.2
4.1
3.8
0.6
0.5
14.5
13.8
0.1
(0.1)
TTK Healthcare
Buy
533
686
414
435
516
6.2
7.1
24.3
33.3
21.9
16.0
3.6
3.1
17.6
20.8
0.8
0.6
Tree House
Neutral
292
1,049
153
194
53.0
52.8
12.4
15.6
23.5
18.7
2.8
2.5
11.8
13.1
7.0
5.4
TVS Srichakra
Buy
United Spirits
Neutral
Vesuvius India*
Buy
173
230
133
1,591
1,720
6.1
6.4
24.5
38.3
7.1
4.5
0.8
0.7
10.9
15.9
0.3
0.3
2,740
39,817
12,294
14,162
12.0
12.0
42.1
67.7
65.1
40.5
4.6
4.1
9.1
10.7
3.6
3.1
375
439
761
600
638
20.1
19.4
35.7
36.6
10.5
10.3
1.9
1.6
19.4
17.1
1.1
0.9
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on July 19, 2013
Market Outlook
July 22, 2013
Research Team Tel: 022 - 39357800
E-mail: research@angelbroking.com
Website: www.angelbroking.com
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Market Outlook: Dealer's Diary

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Market Outlook: Dealer's Diary

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Market Outlook

July 22, 2013

US markets posted a mixed performance on Friday as poor earnings of tech

Nine Pharmaceutical companies under NPPA scanner

Net Inflows (July 18, 2013)

FII Derivatives (July 19, 2013)

OIL & GAS

Nine Pharmaceutical companies under NPPA scanner

71.5 11.8 11.3

80.3 11.9 10.0

HDFC (CMP: `804 / TP: `904 / Upside: 12.5%)

Bajaj Auto (CMP: `1,967/ TP: `2,096/ Upside: 7%)

18.0 3,438 118.8

18.5 4,042 139.7

P/BV EV/EBITDA EV/Sales

Hindustan Zinc (CMP: 104/ TP: Under review/ Upside: -)

Federal Bank (CMP: `381 / TP: - / Upside: - )

UCO Bank (CMP: `69 / TP: `63 / Downside: -8.9%)

Hexaware (CMP: `107/ TP: Under review)

Siyaram Silk Mills (CMP: `242/ TP: ` 311/ Upside: 28%)

Asian Paints (CMP:`5,164/TP:-/Upside:-)

16.5 1,353 141.1

16.3 1,559 162.5

Quarterly Bloomberg Consensus Estimate

EBITDA margin (%)

EBITDA margin (%)

Larsen & Toubro (22/07/2013)

Shriram Transport Finance Company (23/07/2013)

EBITDA margin (%)

Ambuja Cement (24/07/2013)

Dabur India Consolidated (24/07/2013)

EBITDA margin (%)

Hero Moto Corp (24/07/2013)

EBITDA margin (%)

United Phosphorous Consolidated (24/07/2013)

EBITDA margin (%)

Yes Bank Ltd (24/07/2013)

Economic and Political News

India will sell `23,600cr in debt quotas to foreign investors

NTPC power trading arm to supply 300 MW electricity to Kerala

July 22, 2013

Larsen & Toubro, Asian Paints, Blue Star

July 23, 2013

Shriram Trans., KPIT Cummins, Tata Sponge

July 24, 2013

July 25, 2013

July 26, 2013

Wipro, Nestle, Punjab Natl.Bank, Tata Comm, CESC

July 27, 2013

Corporation Bank, Force Motors

July 28, 2013

July 30, 2013

July 31, 2013

Bharti Airtel, ICICI Bank, NHPC, JSW Steel , Dishman Pharma

August 01, 2013

Idea Cellular, Mundra Port, Adani Power, GlaxoSmith Con

August 02, 2013

August 03, 2013

Coal India, PTC India

August 04, 2013

Tata Chemicals, LMW, GIPCL

August 06, 2013