Market Outlook Market Outlook: Dealer's Diary

Market Outlook
June 14, 2012
Dealers Diary
The Indian markets are expected to open marginally in the red tracking weak
global cues. SGX Nifty is trading down by 0.3%. Most of the Asian markets are
trading in the negative territory down by ~0.6% to 0.7%.
Domestic Indices
US markets ended lower on Wednesday due to concerns over the situation in

Europe and negative domestic economic data released during the day. Selling
pressure emerged due to the news that rating agency Egan-Jones had downgraded
Spains sovereign rating to CCC+ from B. Meanwhile a report released by US
commerce department showed second consecutive monthly decrease in US retail
sales.
MID CAP
Indian markets opened flat yesterday, but soon fell in to the negative territory.
However, the markets recovered in the afternoon trade. The markets remained
volatile during the rest of the day and finished flat. Markets would be keenly
awaiting the outcome of the RBIs upcoming policy meeting on Monday during
which rate cuts are expected.
Markets Today
The trend deciding level for the day is 16,872 / 5,121 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 16,952 17,024 / 5,146 5,170 levels. However, if NIFTY trades below
16,872 / 5,121 levels for the first half-an-hour of trade then it may correct up to
16,801 16,721 / 5,096 5,071 levels.
Indices
S2
S1
PIVOT
R1
R2
SENSEX
16,721
16,801
16,872
16,952
17,024
NIFTY
5,071
5,096
5,121
5,146
5,170
News Analysis
CESC declares FY2012 consolidated results

CCCL bags order worth `124cr
Net Inflows (June 12, 2012)

` cr
Purch
Sales
Net
FII
1,454
1,430
285
280
MFs
MTD
YTD
24
86
42,024
820
(5,646)
FII Derivatives (June 13, 2012)

` cr
Purch
Sales
Net
Open Interest
Index Futures
2,029
952
1,077
9,955
Stock Futures
1,074
1,125
(50)
22,834
Gainers / Losers
Gainers
Company
Losers
Price (`)
chg (%)
United Brew-$
516
7.2
United Spirits
677
6.4
Voltas
104
(3.0)
India Cements
80
5.4
Opto Circuits
144
(2.9)
Indraprastha Gas
242
4.8
Tata Global
109
(2.9)
Power Finance
170
4.7
Unitech
23
(2.8)
www.angelbroking.com
Company
Maruti Suzuki
Price (`)
chg (%)
1,108
(3.4)
(Pts)
(Close)
BSE Sensex
0.1
Nifty
0.1
5.6
5,121
(0.2)
(12.4)
6,001
17.7 16,881
SMALL CAP
0.1
8.1
6,365
BSE HC
0.5
29.5
6,549
17.3
7,019
BSE PSU
0.3
BANKEX
(0.1)
AUTO
(1.5) (136.5)
METAL
(0.3)
(13.0) 11,667
9,165
(35.2) 10,370
OIL & GAS
0.2
14.0
7,788
BSE IT
0.5
25.5
5,683
(Pts)
(Close)
Global Indices
Chg (%)
Dow Jones
1.3
NASDAQ
1.2
33.3
2,843
FTSE
0.1
3.4
5,477
Nikkei
0.6
51.1
8,588
Hang Seng
Straits Times
Shanghai Com
Indian ADRs
INFY
0.8
162.6 12,574
154.0 19,027
(0.4)
(10.2)
2,787
1.3
29.1
2,319
Chg (%)
(Pts)
(Close)
(0.8)
(0.3)
$43.8
WIT
0.2
0.0
$8.8
IBN
(0.8)
(0.2)
$30.1
HDB
(1.9)
(0.6)
$30.9
Advances / Declines
Refer detailed news analysis on the following page
Chg (%)
BSE
NSE
Advances
1,371
682
Declines
1,345
720
147
109
Unchanged
Volumes (` cr)
BSE
2,118
NSE
9,734
Market Outlook
June 14, 2012
CESC declares FY2012 consolidated results

CESC reported its consolidated financial results for FY2012. The company posted
moderate top-line growth of 14.0% to `5,813cr on account of 12.2% growth in the
power segment to `4,772cr and 21.5% growth in the retail segment to `1,251cr.
The companys OPM expanded by 52bp to 15.9%. The segmental losses of retail
segment fell by `33cr in FY2012 to `220cr, indicating a better operational
performance from the segment. Consequently, CESC posted 19.4% growth in its
PBT to `394cr. However, the companys net profit declined by 11.6% to `245cr
due to a 181% increase in tax expense to `149cr. At the current market price, the
stock is trading at 0.7x FY2014 P/BV on a standalone basis. We maintain our Buy
view on the stock with an SOTP target price of `342.
CCCL bags order worth `124cr

Consolidated Construction Consortium Ltd (CCCL) has bagged an order from
IL&FS Urban Infrastructure for design and construction of a Green Field Stadium at
Karyavattom (Kerala) for the National Games to be held in Kerala, valued at
`124cr, to be completed in 21 months. The order book stands at `5,891cr. We
maintain our Neutral view on the stock.
Economic and Political News
Government to sell unused foreign debt limit on 20th June 2012

Policy flip-flops hampering India's progress: USIBC
Green issues may stall `17,000cr hydel projects in Uttarakhand
Corporate News
Reliance Cap gets SEBI, Singapore approval for AMC stake sale
ONGC to spend `440cr on drilling 40 wells at K-G basin
Welspun Energy to invest `5,675cr in wind power projects
Britannia probes employee malpractice in supply deals
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
Market Outlook
June 14, 2012
Global economic events release calendar

Date
June 14, 2012
Country
Event Description
Unit
Period
Bloomberg Data
Last Reported
Estimated
US
Initial Jobless claims
Thousands
JUN 9
377.00
375.00
US
Consumer price index (mom)
% Change
MAY
--
(0.20)
Euro Zone
MAY
2.60
2.40
% Change
MAY
7.23
7.50
MAY
1.09
0.10
June 15, 2012
US
Euro-Zone CPI (YoY)

Monthly Wholesale Prices
YoY%
Industrial Production
June 18, 2012
India
RBI Repo rate
JUN 18
8.00
7.75
India
RBI Cash Reserve ratio
JUN 18
4.75
4.75
India
RBI Reverse Repo rate
JUN 18
7.00
6.75
UK
CPI (YoY)
% Change
MAY
3.00
--
US
Housing Starts
Thousands
MAY
717.00
725.00
US
Building permits
Thousands
MAY
723.00
730.00
UK
Jobless claims change
% Change
MAY
(13.70)
--
US
FOMC rate decision
JUN 20
0.25
--
Germany
Value
JUN A
45.20
--
Value
JUN A
(19.30)
--
US
PMI Manufacturing
Euro-Zone Consumer
Confidence
Existing home sales
Millions
MAY
4.62
4.57
Germany
PMI Services
Value
JUN A
51.80
--
June 25, 2012
US
New home sales
MAY
343.00
--
June 26, 2012
US
Consumer Confidence
JUN
64.90
--
June 28, 2012
Germany
Unemployment change (000's)
Thousands
S.A./
1985=100
Thousands
JUN
--
--
US
GDP Qoq (Annualised)
% Change
1Q T
1.90
--
UK
GDP (YoY)
% Change
1Q F
(0.10)
--
July 01, 2012
China
PMI Manufacturing
Value
JUN
50.40
--
July 02, 2012
India
Imports YoY%
% Change
MAY
3.80
--
India
Exports YoY%
% Change
MAY
3.20
--
UK
PMI Manufacturing
Value
JUN
45.90
--
UK
BOE Announces rates
% Ratio
JUL 5
0.50
0.50
Euro Zone
ECB announces interest rates
JUL 5
1.00
--
US
Change in Nonfarm payrolls
Thousands
JUN
69.00
--
US
Unnemployment rate
JUN
8.20
--
July 09, 2012
China
Consumer Price Index (YoY)
% Change
JUN
3.00
--
July 10, 2012
UK
Industrial Production (YoY)
% Change
MAY
(1.00)
--
China
Exports YoY%
% Change
JUN
15.30
--
India
June 19, 2012
June 20, 2012
June 21, 2012
Euro Zone
July 05, 2012
July 06, 2012
Source: Bloomberg, Angel Research
Market Strategy
June 14, 2012
Macro watch
Exhibit 1: Quarterly GDP trends
(%)
1.0
(6.0)
9.4
9.8
Mar-12
(3.2)
(5.0)
Mfg. PMI
60.0
9.5
Feb-12
(4.0)
0.1
Exhibit 4: Manufacturing and services PMI
(%)
9.6
2.7
2.5
Source: MOSPI, Angel Research
Exhibit 3: Monthly WPI inflation trends

12.0
4.1
3.4
Jan-12
4QFY12
3QFY12
2QFY12
1QFY12
4QFY11
3QFY11
2QFY11
1QFY11
4QFY10
3QFY10
(2.0)
2QFY10
3.0
1QFY10
4QFY09
2.0
4.0
Source: CSO, Angel Research
3.7
4.0
Dec-11
5.3
5.0
10.0
9.9
7.7
8.0
Services PMI
58.0
9.5
6.9
7.4
6.9
7.2
56.0
Source: MOSPI, Angel Research
(%)
Exports yoy growth
Exhibit 6: Key policy rates

Repo rate
(%)
9.00
Imports yoy growth
60
Reverse Repo rate
CRR
8.00
8.00
45
7.00
7.00
30
6.00
4.75
5.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
Jun-11
4.00
May-11
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
Jun-11
May-11
May-12
15
(15)
May-12
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Exhibit 5: Exports and imports growth trends

75
May-11
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
48.0
Sep-11
0.0
Aug-11
50.0
Jul-11
2.0
Jun-11
52.0
May-11
4.0
Aug-11
54.0
6.0
Jul-11
10.0
6.0
Nov-11
5.9
6.0
6.2
6.0
6.1
Apr-12
8.0
6.7
Oct-11
7.6
7.4
Jun-11
7.0
9.5
10.0
8.0
Sep-11
7.5
8.0
8.2
Aug-11
8.5
9.0
12.0
9.2
Jul-11
9.4
Jun-11
9.8
May-11
(%)
10.0
Exhibit 2: IIP trends
Market Outlook
June 14, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Agri / Agri Chemical

Rallis
Neutral
134
2,611
1,432
1,647
14.7
14.7
7.0
8.0
19.2
16.8
4.0
3.5
22.8
22.3
1.9
1.6
United Phosphorus
Buy
114
183
5,259
8,191
8,764
16.5
16.5
17.1
18.3
6.7
6.2
1.1
0.9
17.5
16.2
0.8
0.7
Amara Raja Batteries
Accumulate
305
345
2,608
2,715
3,041
15.3
15.3
29.2
32.8
10.5
9.3
2.4
2.0
26.0
23.3
0.9
0.8
Apollo Tyres
Buy
81
100
4,080
13,699
15,184
10.5
10.2
12.1
13.3
6.7
6.1
1.2
1.0
19.7
18.4
0.5
0.4
Ashok Leyland
Buy
27
33
7,237
14,798
16,687
9.6
9.6
2.4
3.0
11.2
9.2
2.2
2.0
14.8
16.5
0.6
0.5
Automotive Axle
Accumulate
455
514
688
1,211
1,387
12.1
11.7
50.3
57.1
9.1
8.0
2.3
1.9
27.8
25.7
0.6
0.5
Bajaj Auto
Buy
1,561
1,835
45,176
22,118
24,889
19.0
18.6
115.7
126.5
13.5
12.3
5.4
4.3
45.0
38.9
1.6
1.3
Bharat Forge
Buy
308
372
7,175
7,173
7,998
16.3
16.5
22.3
26.6
13.8
11.6
2.7
2.3
21.0
21.0
1.1
0.9
Bosch India
Accumulate
8,742
9,429
27,448
9,390
10,716
19.5
19.1
420.2
471.4
20.8
18.5
4.8
4.0
23.3
21.8
2.7
2.3
CEAT
Buy
94
164
323
5,067
5,631
8.0
7.6
39.4
41.0
2.4
2.3
0.4
0.4
18.8
16.5
0.3
0.3
Exide Industries
Accumulate
133
146
11,271
5,787
6,595
15.5
17.0
7.1
9.0
18.6
14.8
3.3
2.8
18.6
20.3
1.6
1.3
FAG Bearings
Accumulate
1,494
1,594
2,482
1,531
1,748
18.8
18.5
118.0
132.8
12.7
11.3
2.7
2.3
24.0
21.9
1.4
1.1
Hero Motocorp
Accumulate
1,958
2,221
39,106
26,106
29,296
15.0
15.2
140.3
148.1
14.0
13.2
6.6
5.1
54.8
43.3
1.2
1.0
JK Tyre
Buy
80
135
327
7,950
8,904
5.5
6.0
25.1
38.6
3.2
2.1
0.4
0.3
12.1
16.4
0.3
0.3
Auto & Auto Ancillary
Mahindra and Mahindra Buy
683
821
41,941
36,010
40,882
10.0
10.0
47.7
53.3
14.3
12.8
2.9
2.5
21.3
20.6
0.9
0.8
Maruti
Buy
1,108
1,510
31,997
42,683
48,736
7.1
7.5
86.6
100.6
12.8
11.0
1.8
1.6
15.3
15.5
0.6
0.5
Motherson Sumi
Buy
161
216
6,318
23,342
26,366
7.8
8.2
13.3
18.0
12.1
9.0
2.9
2.3
26.2
28.4
0.5
0.4
Subros
Neutral
32
194
1,225
1,393
8.5
8.2
4.2
5.0
7.7
6.5
0.8
0.8
10.3
11.8
0.4
0.3
Tata Motors
Buy
238
299
63,390 189,676 210,905
12.5
12.6
39.8
45.2
6.0
5.3
2.4
2.0
44.3
41.6
0.5
0.4
TVS Motor
Buy
34
44
1,594
7,690
8,459
6.1
6.0
5.0
5.5
6.7
6.1
1.2
1.1
19.0
18.6
0.2
0.1
ABB*
Sell
775
498
16,415
8,760
10,023
7.6
7.5
18.2
20.7
42.5
37.4
5.7
5.1
14.4
14.6
1.8
1.6
BGR Energy
Neutral
291
2,101
4,195
4,837
11.0
11.0
30.1
32.4
9.7
9.0
1.7
1.5
18.4
17.6
1.0
1.0
BHEL
Neutral
221
54,006
46,344
46,916
18.3
18.6
23.5
24.1
9.4
9.2
1.9
1.6
21.3
18.9
1.0
1.0
Blue Star
Neutral
165
1,479
3,047
3,328
5.4
6.9
9.6
16.2
17.1
10.1
3.4
2.7
20.7
29.7
0.6
0.5
Crompton Greaves
Buy
117
142
7,480
12,451
14,265
7.9
8.3
8.0
9.5
14.6
12.3
1.9
1.7
13.9
14.9
0.6
0.5
Jyoti Structures
Buy
40
67
326
2,622
2,801
10.6
11.0
10.9
13.4
3.6
3.0
0.5
0.4
13.7
14.9
0.3
0.3
KEC International
Buy
52
73
1,330
6,686
7,200
8.5
8.8
10.6
12.2
4.9
4.3
0.9
0.8
25.9
24.0
0.3
0.3
LMW
Buy
1,609
1,992
1,813
2,369
2,727
11.7
11.7
143.4
166.0
11.2
9.7
1.9
1.7
17.4
18.4
0.3
0.2
Thermax
Neutral
454
5,407
5,514
5,559
9.8
9.6
29.7
28.4
15.3
16.0
2.9
2.6
20.2
16.9
0.9
0.8
Capital Goods
Market Outlook
June 14, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Cement
ACC
Neutral
1,180
22,161
11,018
12,663
19.9
21.2
70.7
81.2
16.7
14.5
2.9
2.6
18.0
19.0
1.7
1.4
Ambuja Cements
Neutral
164
25,132
10,035
11,504
23.5
23.8
10.1
10.6
16.2
15.5
3.2
2.9
18.5
19.4
1.9
1.6
India Cements
Neutral
80
2,453
4,423
4,906
18.2
18.8
9.9
12.7
8.1
6.3
0.7
0.7
8.6
10.5
0.8
0.7
J K Lakshmi Cements
Buy
64
79
784
1,938
2,246
19.1
20.1
14.6
16.1
4.4
4.0
0.6
0.5
13.4
13.6
0.5
0.9
Madras Cements
Neutral
150
3,570
3,444
3,786
25.5
24.9
14.6
17.1
10.3
8.8
1.5
1.3
15.6
16.0
1.6
1.4
Shree Cements
Neutral
2,677
9,324
5,465
6,249
24.3
23.7
151.5
222.1
17.7
12.1
4.2
3.6
21.6
25.8
1.3
1.0
UltraTech Cement
Neutral
1,421
38,945
20,116
22,655
21.3
22.5
82.1
97.5
17.3
14.6
2.7
2.4
16.8
17.4
1.8
1.7
201
273
1,058
2,014
2,293
22.4
22.4
22.6
26.7
8.9
7.5
1.0
0.9
11.4
11.9
2.4
2.7
Construction
Ashoka Buildcon
Buy
Consolidated Co
Neutral
14
255
2,526
2,792
5.7
6.6
1.8
2.8
7.5
4.9
0.4
0.4
5.5
8.1
0.3
0.3
Hind. Const.
Neutral
20
1,195
4,239
4,522
11.1
11.8
(1.8)
(0.8)
(11.0)
(25.2)
1.1
1.3
(9.5)
(4.7)
1.3
1.2
IRB Infra
Buy
128
166
4,243
3,821
4,582
42.3
40.2
15.0
16.9
8.5
7.5
1.3
1.1
16.1
15.8
2.7
2.4
ITNL
Buy
191
265
3,714
6,619
7,925
23.8
23.3
22.0
26.7
8.7
7.2
1.2
1.1
14.9
15.9
2.2
2.1
IVRCL Infra
Buy
49
61
1,319
5,510
6,722
8.8
9.0
2.5
4.6
19.5
10.8
0.7
0.6
3.4
5.8
0.7
0.7
Jaiprakash Asso.
Buy
70
88
14,832
15,259
17,502
25.7
24.7
4.2
5.0
16.5
13.9
1.4
1.3
8.5
9.3
2.3
2.0
Larsen & Toubro
Buy
1,350
1,553
82,710
59,559
69,089
12.1
11.5
70.8
76.5
19.1
17.7
2.9
2.5
16.1
15.3
1.5
1.3
Madhucon Proj
Buy
39
70
286
2,206
2,502
10.7
10.7
4.6
4.7
8.4
8.3
0.4
0.4
5.2
5.0
0.7
0.7
Nagarjuna Const.
Buy
37
41
946
5,453
6,169
8.1
8.5
1.6
1.9
22.4
19.1
0.4
0.4
1.8
2.1
0.6
0.7
Patel Engg.
Neutral
92
643
3,609
3,836
13.1
13.1
14.0
14.6
6.6
6.3
0.4
0.4
6.3
6.1
1.0
1.1
Punj Lloyd
Neutral
48
1,594
11,592
12,993
8.4
8.4
1.8
3.2
26.7
15.0
0.5
0.5
2.0
3.4
0.6
0.5
Sadbhav Engg.
Buy
137
182
2,060
2,789
3,147
10.6
10.7
8.4
10.4
16.2
13.1
2.2
1.9
15.0
15.6
0.9
0.8
Simplex Infra
Buy
215
265
1,062
6,732
7,837
8.1
8.4
23.5
29.4
9.1
7.3
0.8
0.8
9.6
11.0
0.5
0.4
Allahabad Bank
Accumulate
144
147
7,180
7,392
8,542
3.1
3.1
38.3
42.1
3.8
3.4
0.7
0.6
18.4
17.6
Andhra Bank
Neutral
116
6,483
5,151
5,843
3.2
3.1
22.4
25.7
5.2
4.5
0.8
0.7
15.8
16.0
Axis Bank
Buy
1,047
1,476
43,329
16,157
19,557
3.2
3.2
116.4
139.1
9.0
7.5
1.7
1.4
20.0
20.3
Bank of Baroda
Buy
719
925
28,158
15,993
18,918
2.6
2.6
127.3
149.9
5.7
4.8
0.9
0.8
17.8
18.2
Bank of India
Accumulate
356
389
20,444
13,558
15,551
2.5
2.4
61.6
70.8
5.8
5.0
1.0
0.8
16.8
16.9
Bank of Maharashtra
Neutral
Canara Bank
Buy
Central Bank
Neutral
Financials
54
3,196
3,580
4,050
3.2
3.2
11.5
13.1
4.7
4.1
0.8
0.7
17.4
17.2
432
493
19,142
12,061
13,906
2.3
2.3
83.1
92.7
5.2
4.7
0.9
0.7
16.7
16.4
81
5,992
6,838
7,912
2.3
2.4
13.8
20.3
5.9
4.0
0.9
0.7
10.9
14.4
Market Outlook
June 14, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Financials
Corporation Bank
Accumulate
439
468
6,503
5,203
5,880
2.2
2.1
107.5
112.7
4.1
3.9
0.7
0.6
17.9
16.5
Dena Bank
Accumulate
100
107
3,494
3,149
3,522
2.8
2.8
23.3
26.1
4.3
3.8
0.7
0.6
17.7
17.0
Federal Bank
Neutral
429
7,339
2,743
3,131
3.4
3.3
49.7
57.4
8.6
7.5
1.2
1.0
14.1
14.6
HDFC
Neutral
655
96,902
7,393
8,844
3.5
3.4
31.7
37.9
20.7
17.3
4.1
3.7
34.7
31.9
HDFC Bank
Accumulate
543
567
127,659
21,831
27,477
4.3
4.3
28.3
35.5
19.2
15.3
3.7
3.1
20.8
22.1
ICICI Bank
Buy
849
1,174
97,595
22,209
26,512
2.8
2.8
67.9
81.1
12.5
10.5
1.5
1.4
14.7
16.0
IDBI Bank
Buy
93
113
11,928
8,004
9,589
1.9
2.0
19.9
23.9
4.7
3.9
0.6
0.6
13.8
14.9
Indian Bank
Accumulate
178
190
7,652
6,312
7,119
3.4
3.3
41.1
43.7
4.3
4.1
0.7
0.7
18.2
16.9
IOB
Accumulate
88
92
7,041
7,354
8,283
2.5
2.4
16.3
21.7
5.4
4.1
0.6
0.6
11.5
13.9
J & K Bank
Neutral
918
4,450
2,535
2,861
3.5
3.4
176.3
184.4
5.2
5.0
0.9
0.8
19.3
17.6
LIC Housing Finance
Buy
255
286
12,889
2,108
2,607
2.6
2.6
24.5
30.6
10.4
8.4
1.9
1.7
20.1
21.4
Oriental Bank
Accumulate
244
262
7,128
6,431
7,315
2.7
2.6
54.4
63.8
4.5
3.8
0.6
0.5
13.6
14.3
Punjab Natl.Bank
Buy
814
1,041
27,597
19,893
23,653
3.1
3.2
153.4
175.2
5.3
4.7
1.0
0.8
18.3
18.1
South Ind.Bank
Neutral
24
2,696
1,440
1,635
2.7
2.5
3.8
4.1
6.3
5.8
1.2
1.1
19.9
18.6
St Bk of India
Accumulate
2,222
2,469
149,123
68,311
79,649
3.6
3.6
230.4
273.4
9.7
8.1
1.6
1.3
18.2
18.8
Syndicate Bank
Buy
102
126
6,158
7,133
8,255
3.0
3.0
25.9
30.0
3.9
3.4
0.6
0.6
16.9
17.1
UCO Bank
Neutral
80
5,304
5,623
6,380
2.4
2.4
16.9
17.9
4.7
4.5
0.9
0.8
16.5
15.4
Union Bank
Buy
213
261
11,729
10,215
11,854
2.9
2.8
42.7
50.3
5.0
4.2
0.8
0.7
17.0
17.5
United Bank
Buy
68
78
2,451
3,551
4,128
2.7
2.8
18.8
22.6
3.6
3.0
0.6
0.5
15.5
16.5
Vijaya Bank
Neutral
59
2,936
2,668
3,001
2.2
2.2
10.6
12.2
5.6
4.9
0.8
0.7
13.3
13.8
Yes Bank
Buy
346
450
12,247
3,209
4,144
2.7
2.8
33.9
41.5
10.2
8.3
2.2
1.8
23.1
23.3
3,875
37,165
11,423
13,309
16.3
16.3
125.3
148.4
30.9
26.1
10.5
8.2
38.0
35.4
3.1
2.7
537
633
6,412
5,835
6,824
6.3
6.7
20.7
27.5
25.9
19.5
10.1
7.5
42.7
44.3
1.0
0.9
1,138
15,475
3,007
3,417
21.1
22.1
38.2
43.8
29.8
26.0
35.4
27.8
130.2
119.9
5.0
4.4
FMCG
Asian Paints
Neutral
Britannia
Buy
Colgate
Neutral
Dabur India
Neutral
110
19,093
5,878
6,799
16.8
17.0
4.2
4.9
26.4
22.3
9.6
7.8
39.3
42.0
3.1
2.7
GlaxoSmith Con*
Neutral
2,648
11,134
3,124
3,663
17.1
11.6
103.0
123.3
25.7
21.5
7.9
6.4
34.0
32.9
3.3
2.8
Godrej Consumer
Neutral
549
18,693
5,973
7,000
18.4
18.6
22.8
27.2
24.1
20.2
6.6
5.3
31.3
38.4
3.4
2.8
HUL
Neutral
446
96,392
25,350
29,309
14.3
14.4
14.1
16.4
31.6
27.2
23.6
18.5
82.7
76.2
3.5
3.0
ITC
Accumulate
244
252
190,457
29,638
34,159
35.4
35.8
9.3
10.9
26.1
22.4
8.4
6.9
35.3
33.8
6.0
5.2
Market Outlook
June 14, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
( )
Price ( )
( cr )
FY13E
OPM(%)
FY14E
FY13E
FY14E
EPS ( )
FY13E
PER(x)
P/BV(x)
FY14E
FY13E
FY14E
FY13E
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FMCG
Marico
Neutral
171
11,011
4,667
5,427
12.8
12.9
6.6
8.1
25.7
21.0
6.9
5.4
30.0
28.8
2.4
2.0
Nestle*
Neutral
4,527
43,643
8,731
10,539
21.0
21.4
119.3
147.9
38.0
30.6
23.3
15.8
73.0
61.6
5.0
4.1
Tata Global
Buy
109
136
6,710
7,011
7,711
9.7
10.0
6.3
7.5
17.3
14.5
1.7
1.6
9.5
10.9
0.9
0.8
HCL Tech
Accumulate
491
560
33,996
22,792
25,743
17.4
17.4
37.8
43.0
13.0
11.4
2.9
2.4
22.3
21.3
1.5
1.3
Hexaware
Neutral
122
3,615
1,821
2,105
19.0
18.6
9.8
10.7
12.4
11.4
2.9
2.5
23.7
22.5
1.8
1.5
Infosys
Buy
2,471
2,792
141,904
37,615
42,491
31.1
30.6
158.5
174.5
15.6
14.2
3.5
3.0
22.5
20.8
3.0
2.5
Infotech Enterprises
Accumulate
161
177
1,797
1,758
1,972
17.0
16.6
16.8
18.6
9.6
8.7
1.3
1.2
13.6
13.2
0.7
0.5
KPIT Cummins
Neutral
116
2,070
2,028
2,239
15.0
14.8
9.0
11.4
12.9
10.2
2.3
1.9
19.3
18.7
1.0
0.9
Mahindra Satyam
Accumulate
76
86
8,973
7,097
7,812
16.2
16.0
7.5
8.0
10.2
9.6
1.3
1.2
13.2
12.3
0.9
0.7
Mindtree
Neutral
625
2,543
2,172
2,450
16.1
15.5
53.9
58.5
11.6
10.7
2.2
1.8
18.9
17.0
1.0
0.8
Mphasis
Accumulate
348
373
7,321
5,608
5,964
17.7
17.3
35.5
36.8
9.8
9.5
1.4
1.2
13.9
12.6
0.9
0.7
NIIT
Buy
44
52
718
1,162
1,304
14.8
15.1
7.1
8.8
6.1
4.9
1.0
0.9
16.7
18.4
0.4
0.3
Persistent
Neutral
352
1,407
1,109
1,224
23.3
22.4
37.2
40.1
9.5
8.8
1.5
1.3
15.4
14.5
0.9
0.8
TCS
Neutral
1,251
244,878
57,189
66,329
29.3
28.7
63.2
70.9
19.8
17.7
6.0
4.9
30.5
27.7
4.0
3.3
Tech Mahindra
Accumulate
667
725
8,499
5,880
6,314
15.6
15.2
75.9
82.2
8.8
8.1
1.8
1.5
20.1
18.1
1.4
1.2
Wipro
Accumulate
397
430
97,606
41,918
46,879
19.4
19.9
25.1
28.7
15.8
13.9
3.0
2.5
18.6
18.3
2.0
1.7
D B Corp
Buy
183
269
3,355
1,652
1,863
25.7
26.3
13.5
16.1
13.6
11.4
3.0
2.6
24.1
24.4
2.0
1.7
HT Media
Buy
96
148
2,252
2,255
2,555
16.3
16.7
9.0
10.6
10.6
9.0
1.3
1.2
13.4
13.8
0.6
0.5
Jagran Prakashan
Buy
87
137
2,759
1,499
1,642
27.4
28.8
7.6
9.1
11.4
9.6
3.8
3.4
34.6
37.7
1.8
1.6
PVR
Neutral
152
394
625
732
17.4
16.9
12.4
15.8
12.2
9.6
2.0
2.1
8.5
9.9
0.8
0.7
Sun TV Network
Neutral
255
10,039
2,135
2,458
75.2
74.4
20.9
24.0
12.2
10.6
2.9
2.4
26.0
25.1
3.7
3.0
Bhushan Steel
Neutral
453
9,625
9,232
13,557
30.8
31.1
48.0
58.6
9.4
7.7
1.2
1.0
14.5
7.5
3.2
2.2
Coal India
Accumulate
334
353
210,682
68,841
74,509
25.3
25.3
24.1
26.1
13.9
12.8
3.8
3.1
30.4
26.8
2.1
1.8
Electrosteel Castings
Buy
17
22
604
1,984
2,074
11.2
12.6
2.0
2.7
8.6
6.5
0.3
0.1
4.2
5.5
0.5
0.5
Hind. Zinc
Buy
118
139
49,795
13,043
14,223
51.8
52.8
14.8
16.6
8.0
7.1
1.6
1.3
21.2
19.9
2.1
1.5
Hindalco
Neutral
122
23,424
84,652
88,766
9.6
10.5
17.0
18.9
7.2
6.5
0.7
0.6
9.7
9.8
0.5
0.5
JSW Steel
Neutral
641
14,307
39,592
44,910
18.0
17.7
74.7
88.9
8.6
7.2
0.8
0.7
10.7
11.6
0.7
0.7
MOIL
Accumulate
277
296
4,646
1,007
1,091
56.6
56.9
29.4
31.9
9.4
8.7
1.7
1.5
19.0
18.2
2.3
1.9
Monnet Ispat
Buy
339
447
2,182
3,115
3,748
22.1
25.1
59.1
66.8
5.7
5.1
0.8
0.7
15.6
15.3
1.4
1.1
IT
Media
Metals & Mining
Market Outlook
June 14, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
59
54
15,193
166
187
65,616
Sales ( cr )
FY13E
OPM(%)
FY14E
FY13E
FY14E
8,474
9,024
12.6
16.2
11,959
13,062
78.2
78.6
EPS ( )
FY13E
PER(x)
P/BV(x)
RoE(%)
FY14E
FY13E
FY14E
FY13E
FY14E
2.6
3.6
23.0
16.5
1.3
1.2
19.1
20.9
8.7
7.9
2.1
1.8
FY13E
EV/Sales(x)
FY14E
FY13E
FY14E
5.6
7.5
1.4
1.3
27.1
24.4
3.5
3.0
Metals & Mining

Nalco
Reduce
NMDC
Accumulate
SAIL
Neutral
95
39,240
50,914
60,785
14.6
15.1
9.4
10.5
10.1
9.0
0.9
0.8
9.2
9.6
1.2
1.1
Sesa Goa
Accumulate
187
206
16,274
9,067
9,316
35.7
35.5
44.5
44.3
4.2
4.2
0.9
0.8
23.5
19.5
0.4
0.1
Sterlite Inds
Buy
102
123
34,177
45,805
49,029
21.2
23.5
16.5
19.1
6.2
5.3
0.7
0.6
11.5
12.0
0.4
0.2
Tata Steel
Buy
411
499
39,956 143,088 148,011
10.9
12.1
53.9
66.0
7.6
6.2
0.9
0.8
12.2
13.4
0.6
0.6
Cairn India
Accumulate
322
372
61,432
15,513
16,074
74.0
69.7
51.1
48.6
6.3
6.6
1.1
0.9
18.3
14.8
2.8
2.1
GAIL
Buy
337
389
42,703
50,472
55,502
15.3
15.6
35.4
37.0
9.5
9.1
1.7
1.5
19.0
17.2
0.1
ONGC
Buy
269
321
229,886 156,331 159,043
37.7
36.3
31.3
32.6
8.6
8.2
1.5
1.4
18.7
17.3
1.1
1.0
Reliance Industries
Buy
717
897
234,622 316,404 319,119
11.2
12.0
63.5
68.7
11.3
10.4
1.1
1.0
11.7
11.4
0.7
0.7
Oil & Gas
Pharmaceuticals
Alembic Pharma
Buy
51
91
964
1,624
1,855
14.2
15.6
6.6
9.1
7.8
5.6
1.9
1.5
27.5
29.2
0.8
0.7
Aurobindo Pharma
Buy
106
156
3,080
5,243
5,767
14.6
14.6
13.8
14.7
7.7
7.2
0.9
0.4
11.4
10.9
0.7
0.6
Aventis*
Neutral
2,109
4,857
1,482
1,682
15.5
15.5
95.0
104.0
22.2
20.3
3.9
3.1
18.6
17.0
3.1
2.6
Cadila Healthcare
Buy
724
953
14,824
6,196
7,443
18.5
19.5
43.3
50.8
16.7
14.3
4.3
3.5
25.4
24.8
2.4
1.9
Cipla
Buy
304
379
24,397
7,687
8,804
21.4
21.4
16.5
18.9
18.4
16.1
2.9
2.5
16.7
16.8
3.2
2.7
Dr Reddy's
Neutral
1,571
26,633
10,696
11,662
20.7
21.0
83.7
92.9
18.8
16.9
3.9
3.3
22.4
21.0
2.7
2.4
Dishman Pharma
Buy
55
92
442
1,280
1,536
17.8
17.8
9.2
11.3
6.0
4.9
0.5
0.4
7.7
8.5
1.0
0.8
GSK Pharma*
Neutral
2,049
17,352
2,651
2,993
31.7
31.2
76.0
82.4
27.0
24.9
7.8
6.8
30.8
29.0
5.4
4.7
Indoco Remedies
Buy
56
82
517
685
837
15.2
15.2
7.4
8.9
7.6
6.3
1.1
1.0
15.9
16.3
0.9
0.8
Ipca labs
Buy
343
435
4,318
2,850
3,474
20.3
20.3
26.6
32.7
12.9
10.5
3.3
2.6
28.2
27.9
1.7
1.4
Lupin
Buy
516
647
23,040
8,426
10,082
19.7
20.0
29.7
32.4
17.4
15.9
4.5
3.6
27.0
25.2
2.8
2.2
Orchid Chemicals
Buy
119
178
838
2,117
2,434
17.7
17.7
16.7
22.2
7.1
5.4
0.7
0.6
9.5
11.5
1.1
0.9
Ranbaxy*
Neutral
480
20,268
12,046
11,980
18.0
15.8
35.7
29.8
13.5
16.1
5.0
4.1
43.1
28.1
1.7
1.7
Sun Pharma
Neutral
591
60,914
9,272
11,080
38.6
38.0
22.7
22.6
26.1
26.2
4.4
3.9
17.9
15.6
5.0
3.9
CESC
Buy
282
342
3,518
5,084
5,512
24.2
23.8
45.2
48.5
6.2
5.8
0.7
0.6
11.2
10.9
1.1
1.2
GIPCL
Buy
64
77
970
1,557
1,573
28.8
28.5
10.4
10.9
6.2
5.9
0.6
0.6
10.4
10.2
1.1
0.9
NTPC
Neutral
154
127,145
74,766
86,549
23.1
23.4
12.4
14.1
12.4
11.0
1.6
1.4
13.0
13.5
2.4
2.2
49
78
1,445
657
875
52.0
56.1
8.4
12.7
5.8
3.9
0.4
0.3
6.3
8.9
3.4
2.6
196
33,254
9,878
12,033
44.7
46.1
9.6
13.4
20.4
14.6
1.3
1.2
6.4
8.7
5.9
4.8
Power
Real Estate
Anant Raj
Buy
DLF
Neutral
Market Outlook
June 14, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
P/BV(x)
RoE(%)
FY13E
FY14E
FY13E
FY14E
FY13E
EV/Sales(x)
FY14E
FY13E
FY14E
Real Estate
HDIL
Buy
75
115
3,149
2,441
3,344
53.0
46.7
21.4
25.4
3.5
3.0
0.3
0.3
8.4
9.1
3.1
2.3
MLIFE
Buy
315
376
1,288
814
897
26.9
27.0
31.3
33.9
10.1
9.3
1.0
0.9
10.2
10.1
1.9
1.7
Bharti Airtel
Neutral
308
116,831
80,961
86,705
33.5
34.0
17.2
20.8
17.9
14.8
2.1
1.8
11.5
12.3
2.1
1.8
Idea Cellular
Neutral
77
25,384
22,558
25,326
26.4
27.5
3.2
4.7
23.8
16.2
1.8
1.6
7.5
10.0
1.6
1.4
Rcom
Neutral
69
14,159
22,288
23,871
32.1
32.7
4.4
6.0
15.6
11.5
0.4
0.4
2.4
3.2
2.0
1.7
Telecom
zOthers
Bajaj Electricals
Buy
192
246
1,911
3,569
4,172
8.6
9.2
17.3
22.3
11.1
8.6
2.4
2.0
22.9
25.3
0.5
0.4
Abbott India
Accumulate
1,484
1,628
3,154
1,661
1,918
9.7
12.0
60.7
90.4
24.5
16.4
5.0
4.1
22.0
27.3
1.7
1.4
CRISIL
Neutral
1,065
7,471
982
1,136
34.3
34.3
34.3
40.0
31.0
26.6
14.0
11.2
50.9
46.9
7.3
6.1
Cera Sanitaryware
Buy
261
288
330
385
444
17.2
17.4
28.9
32.0
9.0
8.2
1.9
1.6
23.4
21.1
1.0
0.9
Force Motors
Buy
459
680
598
2,346
2,753
6.7
7.0
50.9
61.9
9.0
7.4
0.5
0.5
5.5
6.3
0.2
0.2
Finolex Cables
Buy
38
61
584
2,334
2,687
8.8
9.3
7.6
10.2
5.0
3.7
0.7
0.6
13.7
16.1
0.2
0.1
Goodyear India
Accumulate
320
374
738
1,511
1,692
7.9
9.0
31.5
41.3
10.2
7.8
2.0
1.7
21.2
23.5
0.3
0.2
Graphite India
Buy
88
124
1,719
2,158
2,406
18.1
18.9
12.4
14.0
7.1
6.3
1.0
0.9
14.0
14.3
0.9
0.8
HEG
Buy
207
242
826
1,746
1,946
16.5
17.7
22.5
32.9
9.2
6.3
0.9
0.9
10.4
14.2
1.1
1.0
Hitachi
Buy
117
160
269
857
968
6.9
8.4
10.2
16.0
11.5
7.3
1.4
1.2
12.9
17.8
0.4
0.4
Honeywell Automation
Neutral
2,561
2,264
1,542
1,739
9.4
10.0
116.1
140.8
22.1
18.2
3.1
2.7
15.5
15.9
1.3
1.1
INEOS ABS India
Neutral
719
1,264
900
1,011
10.2
11.5
35.6
45.7
20.2
15.7
2.9
2.5
15.4
17.2
1.3
1.1
ITD Cementation
Accumulate
233
236
269
1,535
1,842
11.1
11.1
27.3
38.3
8.6
6.1
0.7
0.6
7.9
10.2
0.6
0.6
Jyothy Laboratories
Buy
230
268
1,852
1,315
1,568
8.6
11.1
6.4
10.9
36.0
21.1
3.0
2.9
8.4
13.9
1.6
1.4
MCX
Buy
1,027
1,598
5,236
610
702
65.5
67.0
67.9
79.9
15.1
12.9
4.4
3.7
29.1
28.9
5.7
4.4
MRF
Buy
10,532
13,106
4,467
12,390
14,400
10.4
11.3 1,334.6 1,638.2
7.9
6.4
1.6
1.3
16.5
17.4
0.6
0.5
Greenply Industries
Buy
209
309
504
1,925
2,235
10.6
10.9
29.6
44.1
7.1
4.7
1.2
0.9
16.8
21.0
0.5
0.4
Page Industries
Neutral
2,923
3,261
887
1,108
18.3
18.6
95.0
120.9
30.8
24.2
16.1
13.0
57.4
59.5
3.8
3.0
Relaxo Footwears
Accumulate
484
478
581
1,019
1,208
11.0
10.8
44.9
53.1
10.8
9.1
2.6
2.0
27.2
25.0
0.7
0.6
Sintex Industries
Buy
58
79
1,594
4,751
5,189
16.3
16.6
13.6
15.8
4.3
3.7
0.6
0.5
12.9
13.2
0.7
0.6
Siyaram Silk Mills
Buy
264
392
247
1,042
1,173
12.4
12.5
66.3
78.5
4.0
3.4
0.8
0.6
21.1
20.8
0.4
0.4
SpiceJet
Buy
34
40
1,627
5,647
6,513
3.5
6.5
1.9
4.9
17.3
6.9
40.6
5.9
0.4
0.4
TVS Srichakra
Buy
316
462
242
1,612
1,827
9.5
9.8
72.3
92.5
4.4
3.4
1.3
1.0
33.1
32.1
0.4
0.3
TAJ GVK
Buy
61
108
383
300
319
35.8
36.2
7.9
9.1
7.7
6.7
1.0
0.9
13.9
14.4
1.6
1.4
Market Outlook
June 14, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
Sales ( cr )
FY13E
OPM(%)
EPS ( )
FY14E
FY13E
FY14E
FY13E
FY14E
PER(x)
FY13E
P/BV(x)
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
zOthers
Tata Sponge Iron
Buy
301
420
463
757
875
19.0
19.1
63.5
72.9
4.7
4.1
0.7
0.6
16.1
16.1
0.2
United Spirits
Buy
677
730
8,860
10,289
11,421
13.5
14.3
31.0
42.9
21.8
15.8
1.7
1.6
8.1
10.3
1.5
1.3
Vesuvius India
Accumulate
373
413
756
628
716
16.4
16.5
29.8
34.4
12.5
10.8
2.2
1.9
18.8
18.6
1.1
0.9
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on June 13, 2012
Market Outlook
June 14, 2012

Market Outlook Market Outlook: Dealer's Diary

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Market Outlook

June 14, 2012

US markets ended lower on Wednesday due to concerns over the situation in

CESC declares FY2012 consolidated results

Net Inflows (June 12, 2012)

FII Derivatives (June 13, 2012)

OIL & GAS

Refer detailed news analysis on the following page

CESC declares FY2012 consolidated results

CCCL bags order worth `124cr

Economic and Political News

Government to sell unused foreign debt limit on 20th June 2012

Global economic events release calendar

June 14, 2012

Initial Jobless claims

Consumer price index (mom)

June 15, 2012

Euro-Zone CPI (YoY)

June 18, 2012

RBI Repo rate

RBI Cash Reserve ratio

RBI Reverse Repo rate

Jobless claims change

FOMC rate decision

June 25, 2012

New home sales

June 26, 2012

June 28, 2012

Unemployment change (000's)

GDP Qoq (Annualised)

July 01, 2012

July 02, 2012

BOE Announces rates

ECB announces interest rates

Change in Nonfarm payrolls

July 09, 2012

Consumer Price Index (YoY)

July 10, 2012

Industrial Production (YoY)

June 19, 2012

June 20, 2012

June 21, 2012

July 05, 2012

July 06, 2012

Source: Bloomberg, Angel Research

Exhibit 4: Manufacturing and services PMI

Source: MOSPI, Angel Research

Exhibit 3: Monthly WPI inflation trends

Source: CSO, Angel Research

Source: MOSPI, Angel Research

Exports yoy growth

Exhibit 6: Key policy rates

Imports yoy growth

Reverse Repo rate

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

Source: Market, Angel Research; Note: Level above 50 indicates expansion

Exhibit 5: Exports and imports growth trends

Exhibit 2: IIP trends

Agri / Agri Chemical

Amara Raja Batteries

Auto & Auto Ancillary