Market Outlook 250712

7/31/2019 Market Outlook 250712

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Market Outlook July 25, 2012

www.angelbroking.com


Dealer’s Diary

The Indian markets are expected to open in red taking cues from flat to negative

opening in the Asia markets as concern that Greece may need further financial

restructuring and disappointing U.S. corporate earnings hit sentiment.

US markets fell sharply yesterday, resulting in the third straight session of triple-digit losses for the Dow average, following a report that Greece is still unable to

pay off what it owes and will need to go through further debt restructuring. Adding

to the concerns about Europe, credit ratings agency Moody's revised the outlook on

the Aaa sovereign ratings of Germany, the Netherlands and Luxembourg to

negative from stable, citing a spillover effect from problems in Spain and

elsewhere. Meanwhile, Chinese manufacturing recovered a bit in July to 49.5 from

48.2 in June.

Meanwhile, Indian shares ended modestly higher yesterday despite mixed global

cues, as Sharad Pawar-led Nationalist Congress Party put off its final decision on

whether to withdraw from the Manmohan Singh government by a couple of days

and improved Chinese manufacturing data.

Markets Today The trend deciding level for the day is 16,907 / 5,125 levels. If NIFTY trades above

this level during the first half-an-hour of trade then we may witness a further rally

up to 16,974 – 17,030 / 5,147 – 5,166 levels. However, if NIFTY trades below

16,907 / 5,125 levels for the first half-an-hour of trade then it may correct up to

16,851 – 16,784 / 5,106 – 5,084 levels.

SENSEX 16,784 16,851 16,907 16,974 17,030

NIFTY 5,084 5,106 5,125 5,147 5,166

News Analysis Ultratech Cement acquires 100% stake in Gotan Lime Stone Khanij Udyog

Haryana government asks MSIL to pay ` 235cr compensation to farmers

Bosch to temporarily suspend manufacturing operations at Jaipur plant

1QFY2013 Result Reviews – Wipro, Lupin, Canara Bank, Sesa Goa, LIC

Housing, Ashok Leyland, Page Industries, KPIT, Mahindra Lifespaces,

Styrolution ABS (India) Ltd,

1QFY2013 Result Previews - HCL Technologies, Yes Bank, Vijaya Bank,

Aventis, GIPCL, NIIT

Refer detailed news analysis on the following page

Net Inflows (July 23, 2012)

FII 1,725 1,403 322 5,926 51,919

MFs 398 419 (21) (1,989) (7,834)

FII Derivatives (July 24, 2012)

Index Futures 5,286 5,541 (255) 16,548

Stock Futures 6,832 6,722 110 28,156

Gainers / Losers

Hindustan Unilever 476 7.5 HDIL 73 (4.7)

Tata Global 123 6.8 IRB Infra 121 (3.7)

United Breweries 502 5.2 Pipavav Defence 77 (3.6)

Wockhardt 967 4.9 JPINFRATEC 56 (3.3)

Godrej Consumer 611 4.5 Wipro 346 (2.9)

BSE Sensex 0.2 40.7 16,918

Nifty 0.2 10.3 5,128

MID CAP 0.2 9.7 6,113

SMALL CAP 0.1 8.8 6,608

BSE HC 0.4 24.9 6,992

BSE PSU 0.3 21.7 7,153

BANKEX 0.2 18.9 11,824

AUTO (0.1) (9.8) 8,932

METAL 0.2 24.7 10,341

OIL & GAS 0.8 67.1 8,020

BSE IT (0.7) (35.2) 5,223

Dow Jones (0.8) (104.1) 12,617NASDAQ (0.9) (27.2) 2,863

FTSE (0.6) (34.6) 5,499

Nikkei (0.2) (20.2) 8,488

Hang Seng (0.8) (150.3) 18,903

Straits Times 0.5 16.0 2,998

Shanghai Com 0.2 5.2 2,147

INFY (1.2) (0.5) $38.3

WIT (1.3) (0.1) $7.8IBN (0.2) (0.1) $32.4

HDB (0.5) (0.2) $32.2

Advances 1,391 677

Declines 1,396 748

Unchanged 130 84

BSE 1,818

NSE 8,621





Ultratech Cement acquires 100% stake in Gotan Lime StoneKhanij Udyog Private Limited

UltraTech Cement Ltd has has signed an agreement with the shareholders of

Gotan Lime Stone Khanij Udyog Private Limited (GKUPL), Rajasthan to acquire

100% equity shares of GKUPL. With this acquisition, GKUPL has become a wholly owned subsidiary of the Company. The company is currently in the process of

expanding its cement capacity by 10.2mtpa. This acquisition is a positive for the

company. However,

Haryana government asks MSIL to pay ` 235cr compensation to farmers

Haryana government has asked Maruti Suzuki (MSIL) to pay ` 235cr to Haryana

State Industries and Infrastructure Development Corporation (HSIIDC) as enhanced

compensation to farmers for land acquisition under a Supreme Court order.

HSIIDC in a notice issued on June 25, 2012, warned MSIL that if it did not deposit

the amount in three months, the land allotted for the Manesar plant shall become

liable for resumption and further action would be taken. Maruti Suzuki has 600

acres in Manesar where it has two car manufacturing plants and a third plant is

under construction. The total installed capacity at the Manesar plant is 550,000

units it manufactures products like Swift, Dzire, A Star and SX4. MSIL has currently

declared lock-out at its Manesar plant due to labor problems and intends to

resume operations once the problem is amicably resolved. Post the recent

correction in the stock price following shutdown of its Manesar plant, MSIL stock is

trading at 12.2x FY2014E earnings.

Bosch to temporarily suspend manufacturing operations atJaipur plant

In a view to avoid unnecessary buildup of inventory at its plants and align the

production as per the market demand, Bosch (BOS) has announced that it will

suspend the manufacturing operations at the Jaipur plant from July 25, 2012 to

August 04, 2012. The domestic automobile industry which is the primary driver of

company’s revenue, have witnessed a slowdown in demand recently due to

sluggish economic growth, increasing fuel prices and weak consumer sentiments.The company had earlier announced temporary shutdown at its Jaipur (from June

28 to June 30, 2012) and Bangalore (from June 29 to June 30, 2012 and from

July 13 to July 14, 2012) plants, citing similar reasons. At the CMP of ` 8,700, the

stock is trading at 18.9x CY2013E earnings.





Result Reviews

Wipro (CMP: ` 346 / TP: ` 415 / Upside: 20%)

For 1QFY2013, Wipro’s IT services USD revenue growth came in lower than

expected while, in rupee terms, overall results met expectations. Wipro’s IT services

revenue came in at US$1,515mn, down 1.4% qoq, primarily because of tepid

volume growth of 0.8% qoq in global IT services and 1.0% qoq (constant currency

basis) offshore pricing decline. . In CC terms, the IT service segment’s revenue

grew by 0.3% qoq to US$1,515mn. In INR terms, revenue of the IT services

segment came in at ` 8,314cr, up 9.5% qoq. Revenue from the consumer care and

lighting segment grew strongly by 29.9% yoy, while the IT products segment

reported 5.2% yoy decline in revenues. Wipro’s EBITDA and EBIT margin inch up

slightly by 24bp and 41bp qoq to 20.1% and 17.6%, respectively. EBIT margin of

the IT services segment improved by merely 30bp qoq to 21.0% despite ~300bp

qoq benefits derived from INR depreciation against USD because of substantial

rise in S&M investments of ~23% qoq. Management indicated that a dedicatedhunting team has been set to look out for potential large clients. EBIT margin of

the IT products business segment and consumer care and lighting business

segment declined by 246bp and 88bp qoq to 2.2% and 11.6%, respectively.

The company improved its clients in the US100mn+bracket to eight at the end of

FY2012 from four at the starting of FY2012 which is a positive sign. For

2QFY2013, management has given USD revenue guidance of US$1,520mn-

1,550mn, which translates into qoq growth of 0.3-2.3%, which is decent but lower

than our expectation of 1.5-3.5%. With sluggish revenue growth in 1QFY2013

and lackluster 2QFY2013 guidance, for Wipro to achieve Nasscom’s guidance of

FY2013 USD revenue growth (11-14%), seems unattainable. We expect Wipro'stransition will take longer than anticipated earlier and the uncertain macro

environment will further push the timeline. We expect USD and INR revenue CAGR

for IT services to be at 8.8% and 13.2%, respectively over FY2012-14E. On a

consolidated level, we expect Wipro’s revenue to post a CAGR of 13.5% over

FY2012-14E. We expect a 13.0% and 12.1% CAGR in EBITDA and PAT over

FY2012-14E. The stock is currently trading at inexpensive valuations of 13.7x

FY2013E and 12.1x FY2014E EPS.

FY2013E 43,492 19.4 6,170 25.2 18.7 13.7 2.6 8.4 1.6

FY2014E 48,332 19.6 7,001 28.6 18.3 12.1 2.2 6.9 1.3

Lupin (CMP: 575 / TP: 647 / Upside: 12.5%)

Lupin reported above expected results. For the quarter, the company posted sales

of ` 2,219cr, a rise of 43.8% yoy. On the operating front, the Gross and Operating

margins came in at 63.1% and 19.1% respectively. The OPM’s were in line with

expectations of 19.7%. This along with the higher tax along with the deprecations

during the quarter aided the net profit to come at ` 280cr, in comparison to the

` 257cr estimated for the quarter.





FY2013E 8,426 19.7 1,324 27.4 27.0 20.9 4.8 14.5 2.8

FY2014E 10,082 20.0 1,677 32.4 25.0 17.8 3.8 11.4 2.3

Canara Bank (CMP: ` 384 / TP: ` 477 / Upside: 24.1%)

Canara Bank reported Net Interest Income (NII) of ` 1,844cr, a subdued growth of

2.8% yoy, possibly due to contraction in balance sheet size (shedding of bulk

deposits) and interest rate reversal on deteriorated asset quality. Other Income for

the bank grew strongly at 31.5% yoy to ` 693cr. Operating expenses were higher

by 8.8% on a yoy basis to ` 1,142cr. On the back of subdued operating

performance, earnings for the bank grew at 6.8% yoy to ` 775cr. The bank’s asset

quality deteriorated sequentially during 1QFY2013, with both gross and net NPAs

levels increasing by 11.1% and 10.9%, respectively. Gross NPA ratio was higher

on a sequential basis by 25bp to 2.0%, while net NPA ratio was higher by 20bpqoq to 1.7%. At CMP, the stock trades at 0.7x FY2014E ABV.

FY2013E 12,296 2.4 3,608 81.4 508.4 0.9 16.4 4.8 0.8

FY2014E 14,445 2.5 4,086 92.2 578.3 0.9 16.3 4.2 0.7

Sesa Goa (CMP: ` 186/ TP:-/ Upside :-)

Sesa Goa (Sesa) reported disappointing results from its core operations in

1QFY2013 led by lower iron ore sales volumes. Net sales decreased by 17.8% yoy

to ` 1,732cr (lower than our estimate of ` 2,319cr) led by decrease in iron ore sales

volumes. Iron ore sales volumes declined by 48.3% yoy to 2.9mn tonnes mainly

due to ban in Karnataka and logistical constraints in Goa. Iron ore realization

increased marginally by 1.0% yoy to US$100/tonne. EBITDA de-grew 41.0% yoy

to ` 676cr mainly due to decline in net sales and higher export duty. EBITDA

margin slipped 1,530bp yoy mainly due to increase in export duty. Despite decline

in net sales, export duty increased by 25.6% yoy to ` 434cr due to increase in

export duty from December 2011. The company reported an exceptional item of

` 252cr mainly related to forex losses. Consequently, adjusted PAT (before share of

profit from associate and after exceptional items) decreased by 46.3% yoy to

` 451cr in 1QFY2013. Sesa reported share of income from associate (Cairn India)

of ` 765cr during 1QFY2013. Excluding exceptional items and including share of

profit from associates, adjusted net income increased 44.7% yoy to ` 1,216cr

(above our estimate of ` 1,047cr).

Going forward, we are likely to lower our sales volumes estimates for Sesa Goa on

account of logistical constraints in its Goa mines. However, we believe the stock

performance of Sesa will be determined by joint performances of Sterlite Industries

and Sesa on account of anticipated merger between both the companies. Hence,





FY2013E 9,067 35.7 3,957 44.5 23.5 4.1 0.9 5.6 2.0

FY2014E 9,316 35.5 3,944 44.3 19.5 4.2 0.7 5.2 1.9

LIC Housing - (CMP: ` 251 / TP: ` 287 / Upside: 14%)

For 1QFY2013, LIC Housing posted a weak set of numbers with net profit

declining by 11.2% yoy, which were below our estimates mainly because of lower

interest income and higher provisioning expenses than estimated by us.

For 1QFY2013, LICHF’s loan book grew strongly by 24.1% yoy (4.1% qoq) to

` 65,644cr. Loan growth was driven by loans to the individual segment, which

grew by 28.2% yoy to ` 62,602cr, while loans to the developer segment declined

by 24.4% yoy to ` 3,042cr. The proportion of developer loans to overall loans

dipped further from 5.0% in 4QFY2012 to 4.6% for 1QFY2013. Disbursement

growth to the individual segment ( ` 4,470cr) was healthy during 1QFY2013 at

21.6% yoy.

The NIMs for the company have been on a downward trajectory and were lower

by 60bp yoy at 2.4% for 1QFY2013. The asset quality of the company remained

stable on the gross NPA front (0.71% in 1QFY2013 compared to 0.84% in

1QFY2012), however a decline in provision coverage ratio (46.9% in 1QFY2013

compared to 58.5% in 1QFY2012) led to NPA levels increasing from 0.35% in

1QFY2012 to 0.39% in 1QFY2013.

FY2013E 2,071 2.7 1,235 24.5 131.0 1.7 20.1 10.2 1.9

FY2014E 2,618 2.7 1,546 30.6 154.9 1.7 21.4 8.1 1.6

Ashok Leyland (CMP: ` 23 / TP: ` 30/ Upside: 28%)

Ashok Leyland (AL) reported below par performance for 1QFY2013 primarily on

account of lower-than-expected net average realization, high other expenditure

and higher interest expense.

Net sales registered a strong 19.7% yoy (down 30.2% qoq) growth to ` 3,007cr;

however, it was below street expectations due to 15.4% yoy (9.7% qoq) decline in

net average realization. Net average realization declined largely on account of

higher contribution (26% of total volumes vs. 14% in 4QFY2012) from the lower

priced Dost vehicle. Volume performance was boosted by the newly launched LCV

Dost which grew 48.1% qoq. While volumes in the MHCV goods segment declined

by 3% yoy (38.8% qoq); MHCV passenger volumes jumped 23.9% yoy (down

24.7% qoq). During 1QFY2013, total industry volumes in the MHCV segment

declined by 12% yoy led by postponement in purchases by fleet operators amid

slowdown in the economy. However, AL managed to regain some lost ground

during the quarter due to gradual improvement in the southern markets. AL’smarket share in the domestic MHCV segment improved from 23.3% in FY2012 to

26% at the end of 1QFY2013.





On the operating front, EBITDA margins declined 173bp yoy (290bp qoq) to 8%

led by 210bp yoy (140bp qoq) increase in other expenditure. Other expenditure

jumped 50% yoy mainly due to higher advertising expenses and lower operating

leverage benefits. On the positive side, raw-material expenses as a percentage of

sales dipped 70bp yoy (160bp qoq). Hence, operating profit declined 1.6% yoy

(48.8% qoq) to ` 241cr. However, bottom-line declined by 22.4% yoy (74.1% qoq)to ` 67cr as interest expense surged 47.1% yoy (15.2% qoq) to ` 83cr.

Considering the near term challenges in the form of slowing industrial activity and

high interest rates we have revised downwards our volume estimates for FY2013E.

Due to margin pressures in 1QFY2013, we have lowered our operating margin

estimates by 60bp/30bp for FY2013/FY2014. Nonetheless, at ` 23, the stock is

trading attractively at 8.6x FY2014E earnings.

We shall release a detailed result note post

earnings conference call with the management.

FY2013E 14,920 9.0 574 2.2 13.2 10.8 2.0 5.5 0.5

FY2014E 16,850 9.3 720 2.7 15.4 8.6 1.7 4.5 0.4

Page Industries (CMP: ` 2,825 / TP: - / Upside: - %)

Page Industries announced a mixed set of numbers for 1QFY2013 results. The

company’s net sales grew by 23.6% yoy to ` 218cr. Despite strong revenue growth,

EBITDA increased by modest 7.2% yoy to ` 47cr, largely due to margin contraction.

EBITDA margin contracted by 329bp yoy to 21.4% on back of higher raw material

cost and other expenditure. Raw material cost came in at 50.1% of net sales in

1QFY2013 v/s. 47.5% in 1QFY2012. PAT increased by 18.4% yoy to ` 33cr,

higher than EBITDA growth due to higher other income during the quarter, which

increased by 69.0% yoy to ` 7cr.

FY2013E 887 18.3 106 95.0 57.4 29.7 15.5 19.6 3.6

FY2014E 1,108 18.6 135120.9 59.5 23.4 12.6 15.4 2.9

KPIT (CMP: ` 126 / TP: - / Upside: -)

KPIT Cummins Infosystems (KPIT) reported its 1QFY2013 results which were in-line

with our estimates on the revenue front but exceeded expectations on the

operating as well as profitability front. The dollar revenues came in at US$98mn,

up 2.8% qoq. The company had carved out it semiconductor solutions (SSG)

business during 4QFy2012, so adjusting for that USD revenue grew by ~5% qoq.

In INR terms, revenues came in at ` 480cr, up 26.7% qoq. Systime revenues grew

by 11.6% qoq to US$14.7mn.

EBITDA margin of the company declined by 86bp qoq to 15.0%, because

company gave wage hikes of 10% to offshore employees and 4% to onsite

employees (highest in the industry) from April 1, 2012. PAT came in higher than





expected at ` 51.3cr, up 17.3% qoq, aided by an exceptional income of ` 2.7cr on

account of SSG business transfer. Adjusting for that, PAT came in at ` 49cr, up

11.2% qoq.

FY2013E 2,145 16.0 189 9.9 20.8 12.6 2.5 6.3 1.0

FY2014E 2,316 14.8 213 11.3 19.1 11.1 2.0 6.0 0.9

Mahindra Lifespaces (CMP: ` 325 / TP: ` 376/ Upside: 15.6%)

Mahindra lifespaces (MLIFE) reported a strong set of numbers beating our

expectations across the board. MLIFE’s standalone revenues came in at 15.8%

above our expectations at ` 104cr for 1QFY2013. Standalone EBITDA increased by

84.8% yoy owing to significant margins expansion and coming in at ` 31.9cr. PAT

for the quarter increased by 71.5% yoy. In our opinion, the strong revenue growth

as well as EBITDA margins might be due to certain high margins projects hitting

their revenue recognition thresholds during the quarter. On a consolidated level,

MLIFE reported a Revenue/EBITDA/PAT of ` 121cr/ ` 35cr/ ` 19cr during the quarter,

suggesting a loss for its subsidiaries at net level (profitable at operating level),

which is due to majority of the consolidated debt being tied to its subsidiaries

thereby leading to interest cost cutting into operating profits.

The company also launched second phase of project Bloomdale (Nagpur) during

the quarter. During 1QFY2013, total sales were 0.2mn Sqft (Aqualily- Chennai

and Bloomdale- Nagpur) for a total consideration of ` 52cr, implying a realization

of ` 2,600/sqft, lower than MLIFE’s historical realizations due to the low value

launch in Nagpur. Company has also acquired two land parcels during the

quarter, with one being an outright purchase (affordable housing- Chennai -

0.7mn Sqft) and the other one being a Joint development agreement (Pune-

Premium housing – 0.2 mn Sqft). Though, the sales numbers (volume and value)

for the quarter remain weak, we expect sales to pick up in the coming quarters as

newer launches in Pune, Hyderabad and Chennai come along, following there

approvals.

FY2013E 814 26.9 128 31.3 10.2 9.8 1.0 7.9 2.1

FY2014E 897 27.0 139 33.9 10.1 9.1 0.9 7.0 1.9

Styrolution ABS (India) Ltd (CMP: ` 680 / TP: - / Upside: -)

Styrolution ABS (previously INEOS ABS India Ltd.) reported poor set of numbers for

2QCY2012. Top line came in flat sequentially at ` 235cr, 14.4% higher yoy and

8% higher than our estimate. EBITDA for the quarter stood at ` 14.4cr, 21% lower

than our estimate of ` 18.3cr while 37% lower sequentially. Operating margins fell

by 357bp sequentially to 6.1% owing to 385bp higher raw material cost. The

company reported net profit of ` 9.9cr, 24% lower than our estimate of ` 12.9cr





while 40% lower on qoq front due to poor operating performance. We maintain

our BUY recommendation on the stock with target price under review.

CY2012E 900 9.0 58 33 31.7 20.6 2.8 12.0 1.1CY2013E 1,020 11.1 79 45 43.3 15.2 2.4 8.1 0.9

Result Previews

HCL Technologies (CMP: ` 482 / TP: ` 562 / Upside: 17%)

HCL Technologies is slated to announce its 4QFY2012 numbers today. We expect

the company to post revenue of US$1,079mn, 3.0% qoq g rowth. In rupee terms,

the revenue is expected to grow by 13.6% qoq to ` 5,926cr. EBITDA margin is

expected to expand by 248bp qoq to 20.9%. PAT is expected to come in at

` 718cr. The company is one of our preferred picks in the IT sector.

FY2013E 24,029 18.3 2,778 39.6 22.9 12.2 2.8 7.4 1.4

FY2014E 26,633 17.2 3,029 43.2 21.0 11.1 2.3 6.8 1.2

Yes Bank (CMP: ` 341 / TP: ` 454 / Upside: 33%)

Yes Bank is slated to announce its 1QFY2013 results today. We expect the bank to

report a healthy NII growth of 29.7% yoy to ` 459cr. Non-interest income is also

expected to grow strongly by 42.4% yoy to ` 235cr. While operating expenses are

expected to increase by 47.9% yoy to ` 287cr, provisioning expenses is expected to

come in higher at ` 15cr ( ` 2cr in 1QFY2012). The PAT is expected to go up by

22.5% yoy to ` 265cr.

At the CMP, the stock is trading at 1.7x FY2014E ABV. We value the stock at 2.3x

FY2014 ABV.

FY2013E 3,250 2.8 1,203 34.1 161.3 1.5 23.2 10.0 2.1

FY2014E 4,261 2.9 1,511 42.8 197.2 1.5 23.9 8.0 1.7

Vijaya Bank (CMP: ` 56 / TP: ` 52 / Downside: 6.8%)

Vijaya Bank is scheduled to announce its 1QFY2013 results today. We expect the

bank to report a healthy 19.1% yoy growth in Net Interest Income (NII) to ` 504cr.

Non-interest income is expected to de-grow by 25.8% yoy to ` 125cr. Operating

expenses are expected to increase by 16.7% yoy to ` 310cr. However, provisioning

expenses are expected to decline by 34.9% yoy to ` 151cr on a high base of last

year, which would aid 79.0% growth in Net profit to ` 129cr. At the CMP, the stockis trading at 0.6x FY2014E ABV.





FY2013E 2,695 2.2 594 9.6 75.4 0.5 12.0 5.7 0.7

FY2014E 3,097 2.3 713 12.0 86.5 0.5 13.6 4.6 0.6

Aventis (CMP: ` 2,200/ TP: -/ Upside: -)

For the 2QCY2012, Aventis is expected to post a net sales and profits of around

Rs370cr and Rs46.4cr, registering a yoy growth of 22.2% and de-growth of 6.6%.

On the operating front, the margins are expected to expand by 167bps to end the

period at 15.8%.

CY2012E 1,482 15.0 219 94 18.6 23.1 4.0 20.1 3.1

CY2013E 1,660 15.0 240 104 17.0 21.1 3.1 17.2 2.7

GIPCL (CMP: ` 64 / TP: ` 77 / Upside: 20%)

GIPCL is expected to announce its 1QFY2013 results. We expect the company to

register 6.8% yoy growth in its top line to ` 364cr. OPM is set to decline by

1,297bp yoy to 33.1% on a high base on account of lower plant availability and

lesser generation-linked incentives. The first unit of SLPP I plant (125MW), which

was not operational during 4QFY2012, started its operations in April 2012. The

bottom line is expected to decline by 7.1% yoy to ` 40cr.

FY2013E 1,557 28.8 157 10.4 10.4 6.2 0.6 3.9 1.1

FY2014E 1,573 28.5 165 10.9 10.2 5.9 0.6 3.3 0.9

NIIT (CMP: ` 41 / TP: ` 52 / Upside: 28%)

NIIT is expected to announce its 1QFY2013 results today. We expect the revenues

to come in at ` 237cr, down 26.4% yoy due to divestment of Element K business

(part of and corporate learning solution (CLS) business). Revenue for individual

learning solution (ILS) and school learning solution (SLS) segment is expected to

grow at 14.0% and 12.0% yoy to ` 134cr and ` 45cr, respectively. EBITDA margin

is expected to improve by 151bp yoy 11.1%. PAT is expected to be at ` 19cr.

FY2013E 1,162 14.8 117 7.1 16.7 5.8 1.0 2.9 0.4

FY2014E 1,304 15.1 145 8.8 18.4 4.7 0.9 2.0 0.3





Quarterly Bloomberg Brokers Consensus Estimate

Net sales 5,761 4,300 34.0 5,216 10.5

EBITDA 1,110 794 39.7 959 15.7EBITDA margin (%) 19.3 18.5 18.4

Net profit 679 511 32.9 603 12.7

Net profit 939 705 33 1,032 (9)

Net profit 271 216 25 272 (0)

Net sales 2,727 2,403 13 2,860 (5)

EBITDA 610 580 5 645 (5)

EBITDA margin (%) 22.4 24.1 22.6

Net profit 376 337 12 155 143

Net sales 2,480 2,173 14 2,633 (6)

EBITDA 700 598 17 772 (9)

EBITDA margin (%) 28.2 27.5 29.3

Net profit 451 348 30 312 45

Net sales 7,753 7,126 9 19,260 (60)

EBITDA 1,144 1,113 3 5,336 (79)

EBITDA margin (%) 14.8 15.6 27.7Net profit 818 816 0 3,380 (76)

Net sales 6,692 5,767 16 6,861 (2)

EBITDA 2,286 1,976 16 2,021 13

EBITDA margin (%) 34.2 34.3 29.5

Net profit 1,592 1,333 19 1,614 (1)





Net sales 9,170 7,432 23 10,153 (10)

EBITDA 1,608 1,435 12 1,887 (15)

EBITDA margin (%) 17.5 19.3 18.6

Net profit 479 495 (3) 808 (41)

Net sales 10,398 9,824 6 10,975 (5)

EBITDA 2,505 2,758 (9) 3,308 (24)

EBITDA margin (%) 24.1 28.1 30.1

Net profit 1,152 2,282 (50) 2,403 (52)

Net profit 939 705 33 1,032 (9)

Net sales 6,049 6,390 (5) 7,206 (16)

EBITDA 1,385 1,650 (16) 1,610 (14)

EBITDA margin (%) 22.9 25.8 22.3

Net profit 674 1,146 (41) 1,156 (42)

Net profit 939 705 33 1,032 (9)

Net sales 2,066 1,763 17 2,047 1

EBITDA 419 349 20 466 (10)

EBITDA margin (%) 20.3 19.8 22.8

Net profit 258 214 21 276 (7)

Net sales 16,188 14,171 14 16,264 (0)

EBITDA 3,748 3,219 16 4,881 (23)

EBITDA margin (%) 23.2 22.7 30.0

Net profit 2,344 2,076 13 2,593 (10)

Net profit 1,268 1,105 15 1,424 (11)





Net profit 598 464 29 773 (23)

Net profit 763 662 15 763 0

Net sales 2,220 1,935 15 1,863 19

EBITDA 296 339 (13) 191 55

EBITDA margin (%) 13.3 17.5 10.3

Net profit 88 138 (36) 8 1000

Economic and Political News

New CDR norms to erode PSBs' profitability by up to 18%: StanChart

14 FDI proposals worth ` 1,584cr cleared

PMO to take final view on relaxing FDI in pharma: official

Corporate News

Aditya Birla sweetens Northern Iron offer to US$532mn

Eicher to enter personal vehicle segment, forms JV with Polaris

Jindal Steel & Power to buy CIC Energy

Proparco takes 20% equity in Strides' African arm for US$12.5mn TCS inks deal with Savvis for offering BaNCS on cloud

Wipro to buy Yardley UK portfolio, Woods of Windsor brand Source: Economic Times, Business Standard, Business Line, Financial Express, Mint



Date Company

July 25, 2012 Power Grid Corpn, Yes Bank, Aventis, Vijaya Bank, GIPCL, MRF, Jyothy Laboratories

July 26, 2012ITC, BHEL, Sterlite Inds, Ambuja Cements, ACC, JSW Steel , Gujarat Gas, Tata Comm, Thermax, Jagran Prakashan,Bajaj Electrical, J K Lakshmi Cements

July 27, 2012

NTPC, ICICI Bank, Nestle, Punjab Natl.Bank, Grasim Inds, Bank of India, Rural Elec.Corp., Union Bank, United Spirits,

Central Bank, IRB Infra, Areva, CESC, TVS Motor, Dena Bank, Hind. Const., Siyaram Silk MillsJuly 28, 2012 HDFC, Maruti, Indraprasth Gas, Sarda Energy, Vesuvius India, Force Motors

July 30, 2012GAIL, Bank of Baroda, Oriental Bank, Allahabad Bank, IOB, Corporation Bank, Syndicate Bank, Sadbhav Engg.,SpiceJet, Jyoti Structures, Indoco Remedies, JK Tyre, Subros

July 31, 2012Cipla, Titan Inds., Jaiprakash Asso., Petronet LNG, IDBI Bank, Bhushan Steel, Ipca labs, Hexaware, KEC International,Dishman Pharma

August 01, 2012 Mundra Port, Adani Power, Federal Bank, PVR, CEAT

August 02, 2012 Cummins India, Mahindra Satyam, Glenmark Pharma., Madras Cements

August 03, 2012 Sun TV Network, Marico, United Bank, BGR Energy , Graphite India, Abbott India

August 04, 2012 Godrej Consumer, Divi's Lab., Prakash Industries

August 06, 2012 SAIL, Cadila Healthcare, Andhra Bank, Britannia, LMW, PTC India

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

Jul 25 2012 12:00AM UK GDP (YoY) % Change 2Q A (0.20) (0.30)

US New home sales Thousands Jun 369.00 370.65

Jul 26 2012 12:00AM US Initial Jobless claims Thousands Jul 21 386.00 380.00

Jul 27 2012 12:00AM US GDP Qoq (Annualised) % Change 2Q A 1.90 1.40

Jul 30 2012 12:00AM Euro ZoneEuro-Zone ConsumerConfidence

Value Jul F (21.60) --

Jul 31 2012 12:00AM US Consumer Confidence S.A./1985=100

Jul 62.00 62.00

Germany Unemployment change (000's) Thousands Jul 7.00 --

India RBI Repo rate % Jul 31 8.00 8.00

India RBI Cash Reserve ratio % Jul 31 4.75 4.75

India RBI Reverse Repo rate % Jul 31 7.00 7.00

Aug 1 2012 12:00AM Germany PMI Manufacturing Value Jul F 43.30 --

India Imports YoY% % Change Jun (7.36) --

India Exports YoY% % Change Jun (4.16) --

UK PMI Manufacturing Value Jul 48.60 --

China PMI Manufacturing Value Jul 50.20 50.20US FOMC rate decision % Aug 1 0.25 0.25

Aug 2 2012 12:00AM UK BOE Announces rates % Ratio Aug 2 0.50 0.50

Euro Zone ECB announces interest rates % Aug 2 0.75 0.75

Aug 3 2012 12:00AM Germany PMI Services Value Jul F 49.70 --

US Change in Nonfarm payrolls Thousands Jul 80.00 97.00

US Unnemployment rate % Jul 8.20 8.20

Aug 7 2012 12:00AM UK Industrial Production (YoY) % Change Jun (1.60) --

Aug 9 2012 12:00AM China Industrial Production (YoY) % Change Jul 9.50 --

China Consumer Price Index (YoY) % Change Jul 2.20 --

Aug 10 2012 12:00AM India Industrial Production YoY % Change Jun 2.40 --

China Exports YoY% % Change Jul 11.30 --



July 25, 2012

Market Outlook



Market Strategy

July 25, 2012


Macro watch

Exhibit 1 : Q uarterly G D P trends

5. 9

7 .5

9. 8

7. 4

9 .4

8. 5

7. 68. 2

9. 2

8. 0

6. 76. 1

5. 3

3. 0

4. 0

5. 0

6. 0

7. 0

8. 0

9. 0

10.0

4 Q

F Y 0 9

1 Q

F Y 1 0

2 Q

F Y 1 0

3 Q

F Y 1 0

4 Q

F Y 1 0

1 Q

F Y 1 1

2 Q

F Y 1 1

3 Q

F Y 1 1

4 Q

F Y 1 1

1 Q

F Y 1 2

2 Q

F Y 1 2

3 Q

F Y 1 2

4 Q

F Y 1 2

(%)

Source: CSO, Ang el Research

Exhibit 2 : IIP trends

9 .5

3. 7 3. 42. 5

(5.0)

6 .0

2. 7

1. 0

4. 3

(3.2)

(0.9)

2. 4

(6.0)

(4.0)

(2.0)

-

2. 0

4. 0

6. 0

8. 0

10.0

12.0

J u n

- 1 1

J u

l - 1 1

A u g

- 1 1

S e p

- 1 1

O

c t - 1 1

N o v

- 1 1

D e c

- 1 1

J a n

- 1 2

F e

b -

1 2

M

a r

- 1 2

A p r

- 1 2

M

a y

- 1 2

(%)

Source: M O SPI, Ang el Research

Exhibit 3 : M onthly WPI inflation trends

9. 4 9. 8 10.0 9. 9 9. 5

7. 76. 9

7. 4 7. 7 7. 5 7. 6 7. 3

0. 0

2. 0

4. 0

6. 0

8. 0

10.0

12.0

J u

l - 1 1

A u g

- 1 1

S e p

- 1 1

O

c t - 1 1

N o v

- 1 1

D e c

- 1 1

J a n

- 1 2

F e

b -

1 2

M

a r

- 1 2

A p r

- 1 2

M

a y

- 1 2

J u n

- 1 2

(%)

Source: M O SPI, Ang el Research

Exhibit 4 : M a nufacturing a nd services PM I

48.0

50.0

52.0

54.0

56.0

58.0

60.0

J u n

- 1 1

J u

l - 1 1

A u g

- 1 1

S e p

- 1 1

O

c t - 1 1

N o v

- 1 1

D e c

- 1 1

J a n

- 1 2

F e

b -

1 2

M

a r

- 1 2

A p r - 1

2

M

a y

- 1 2

J u n

- 1 2

M fg. PM I Services PM I

Source: Ma rket, Angel Research; N ote: Level above 50 indicates expansion

Exhibit 5 : Expo rts an d impo rts growth trends

(15.0)

0. 0

15.0

30.0

45.0

60.0

75.0

J u n

- 1 1

J u

l - 1 1

A u g

- 1 1

S e p

- 1 1

O

c t - 1 1

N o v

- 1 1

D e c

- 1 1

J a n

- 1 2

F e

b - 1

2

M

a r

- 1 2

A p r

- 1 2

M

a y

- 1 2

Expo rts yo y g ro wth Im ports yo y growth( %)


Exhibit 6 : Key policy rates

4.00

5.00

6.00

7.00

8.00

9.00

J u

l - 1 1

A u g

- 1 1

S e p

- 1 1

O

c t - 1 1

N o v

- 1 1

D e c

- 1 1

J a n

- 1 2

F e

b -

1 2

M

a r

- 1 2

A p r

- 1 2

M

a y

- 1 2

J u n

- 1 2

J u

l - 1 2

Repo rate Reverse Repo rate C RR(%)

Source: RBI, Angel Research



Company Name Reco CMP Target Mkt Cap Sales ( Čcr ) OPM(%) EPS (Č) PER(x) P/BV(x) RoE(%) EV/Sales(x)

( Č ) Price ( Č) ( Č cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E

Agri / Agri Chemical

Rallis Neutral 120 - 2,339 1,432 1,647 14.7 14.7 7.0 8.0 17.2 15.0 3.6 3.1 22.8 22.3 1.7 1.4

United Phosphorus Buy 124 183 5,714 8,191 8,764 16.5 16.5 17.1 18.3 7.3 6.8 1.2 1.0 17.5 16.2 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Accumulate 292 345 2,497 2,715 3,041 15.3 15.3 29.2 32.8 10.0 8.9 2.3 1.9 26.0 23.3 0.9 0.8

Apollo Tyres Buy 81 100 4,075 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 23 30 6,199 14,920 16,850 9.0 9.3 2.2 2.7 10.8 8.6 2.0 1.7 13.2 15.4 0.5 0.4

Automotive Axle Accumulate 402 430 607 993 1,140 11.6 11.5 36.9 43.0 10.9 9.4 2.2 1.8 21.2 21.3 0.7 0.5Bajaj Auto Accumulate 1,559 1,698 45,122 21,285 23,927 18.2 18.3 108.5 121.3 14.4 12.9 6.0 4.8 46.1 41.3 1.7 1.5

Bharat Forge Buy 298 372 6,931 7,173 7,998 16.3 16.5 22.3 26.6 13.3 11.2 2.6 2.2 21.0 21.0 1.0 0.9

Bosch India Accumulate 8,700 9,206 27,318 9,106 10,255 19.4 19.3 410.2 460.3 21.2 18.9 4.7 3.9 22.1 20.4 2.7 2.3

CEAT Buy 98 164 334 5,067 5,631 8.0 7.6 39.4 41.0 2.5 2.4 0.4 0.4 18.8 16.5 0.3 0.3

Exide Industries Accumulate 130 149 11,012 5,899 6,771 16.0 17.0 7.4 9.1 17.6 14.2 3.1 2.7 19.0 20.2 1.5 1.3

FAG Bearings Accumulate 1,455 1,560 2,418 1,505 1,747 17.7 18.0 111.5 130.0 13.1 11.2 2.7 2.2 22.8 21.7 1.4 1.1

Hero Motocorp Buy 2,037 2,428 40,682 26,097 29,963 15.0 15.3 139.5 151.8 14.6 13.4 6.9 5.2 54.6 44.3 1.3 1.1

JK Tyre Buy 91 135 374 7,950 8,904 5.5 6.0 25.1 38.6 3.6 2.4 0.4 0.4 12.1 16.4 0.3 0.3

Mahindra and Mahindra Buy 687 824 42,150 35,881 40,746 10.0 10.0 47.5 53.2 14.4 12.9 2.9 2.5 21.3 20.5 0.9 0.8

Maruti Buy 1,105 1,364 31,930 39,959 46,670 6.0 7.0 71.4 90.9 15.5 12.2 1.9 1.6 12.8 14.4 0.6 0.5

Motherson Sumi Buy 166 216 6,504 23,342 26,366 7.8 8.2 13.3 18.0 12.5 9.2 3.0 2.4 26.2 28.4 0.5 0.4

Subros Accumulate 31 36 187 1,244 1,402 8.4 8.3 4.5 5.1 7.0 6.1 0.7 0.7 9.9 11.0 0.4 0.3

Tata Motors Buy 216 305 57,566 191,303 211,004 13.0 12.9 40.7 43.8 5.3 4.9 1.8 1.5 36.0 33.1 0.4 0.4

TVS Motor Accumulate 39 42 1,855 7,442 8,198 6.2 6.1 4.8 5.2 8.2 7.5 1.4 1.3 18.2 17.9 0.2 0.2

Capital Goods

ABB* Sell 744 498 15,764 8,760 10,023 7.6 7.5 18.2 20.7 40.8 35.9 5.5 4.9 14.4 14.6 1.7 1.5BGR Energy Neutral 290 - 2,096 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 218 - 53,284 47,801 43,757 19.4 19.8 25.7 23.9 8.5 9.1 1.8 1.6 22.7 18.3 1.1 0.9

Blue Star Neutral 186 - 1,670 3,047 3,328 5.4 6.9 9.6 16.2 19.3 11.4 3.8 3.1 20.7 29.7 0.6 0.5

Crompton Greaves Accumulate 118 128 7,579 12,691 14,096 7.0 8.5 6.5 9.1 18.2 13.0 1.9 1.8 11.1 14.2 0.6 0.6

Jyoti Structures Buy 40 67 326 2,622 2,801 10.6 11.0 10.9 13.4 3.7 3.0 0.5 0.4 13.7 14.9 0.3 0.3

KEC International Buy 57 73 1,467 6,686 7,200 8.5 8.8 10.6 12.2 5.4 4.7 1.0 0.9 25.9 24.0 0.4 0.4

LMW Buy 1,611 1,992 1,814 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 507 - 6,044 5,514 5,559 9.8 9.6 29.7 28.4 17.1 17.9 3.2 2.9 20.2 16.9 1.0 0.9


July 25, 2012

Market Outlook

Stock Watch





Cement

ACC Neutral 1,269 - 23,831 11,096 12,607 21.0 21.7 76.1 82.9 16.7 15.3 3.1 2.8 19.3 19.3 1.8 1.5

Ambuja Cements Neutral 168 - 25,873 10,205 11,659 24.6 24.2 10.8 12.0 15.5 14.0 3.2 2.9 19.7 19.8 2.1 1.8

India Cements Neutral 81 - 2,488 4,364 4,791 18.9 19.1 9.2 11.4 8.8 7.1 0.7 0.7 8.0 9.5 0.5 0.4

J K Lakshmi Cements Neutral 84 - 1,028 1,938 2,246 19.1 20.1 15.2 16.8 5.5 5.0 0.8 0.7 13.8 14.0 0.6 1.0

Madras Cements Neutral 157 - 3,735 3,444 3,786 25.5 24.9 14.6 17.1 10.8 9.2 1.6 1.4 15.6 16.0 1.7 1.4

Shree Cements Neutral 2,875 - 10,016 5,519 6,293 24.5 23.7 156.6 225.3 18.4 12.8 4.6 3.9 22.3 26.0 1.5 1.2

UltraTech Cement Neutral 1,614 - 44,244 20,099 22,642 21.7 22.9 89.6 1 04.7 18.0 15.4 3.0 2.6 17.7 17.9 2.0 1.9Construction

Ashoka Buildcon Buy 212 273 1,116 2,014 2,293 22.4 22.4 22.6 26.7 9.4 7.9 1.0 0.9 11.4 11.9 2.4 2.7

Consolidated Co Neutral 16 - 296 2,489 2,755 7.0 7.8 3.0 4.0 5.4 4.0 0.5 0.4 8.7 10.8 0.3 0.3

Hind. Const. Neutral 18 - 1,113 4,239 4,522 11.1 11.8 (1.8) (0.8) (10.2) (23.5) 1.1 1.2 (9.5) (4.7) 1.3 1.2

IRB Infra Buy 121 166 4,012 3,821 4,582 42.3 40.2 15.0 16.9 8.1 7.1 1.2 1.1 16.1 15.8 2.7 2.5

ITNL Buy 177 265 3,445 6,619 7,925 23.8 23.3 22.9 27.8 7.7 6.4 1.1 1.0 15.5 16.4 2.2 2.1

IVRCL Infra Buy 43 61 1,149 5,510 6,722 8.8 9.0 2.5 4.6 17.0 9.4 0.6 0.5 3.4 5.8 0.7 0.6

Jaiprakash Asso. Buy 74 88 15,799 15,259 17,502 25.7 24.7 4.2 5.0 17.5 14.8 1.4 1.3 8.5 9.3 2.4 2.1

Larsen & Toubro Accumulate 1,355 1,553 83,004 59,559 69,089 12.1 11.5 78.4 85.2 17.3 15.9 2.9 2.5 16.1 15.3 1.6 1.4

Madhucon Proj Buy 36 56 268 2,206 2,502 10.7 10.7 4.6 4.7 7.8 7.8 0.4 0.4 5.2 5.0 0.7 0.7

Nagarjuna Const. Neutral 39 - 990 5,453 6,169 8.1 8.5 1.6 1.9 23.5 20.0 0.4 0.4 1.8 2.1 0.6 0.7

Patel Engg. Neutral 88 - 617 3,609 3,836 13.1 13.1 14.0 14.6 6.3 6.1 0.4 0.4 6.3 6.1 1.0 1.1

Punj Lloyd Neutral 51 - 1,704 11,592 12,993 8.4 8.4 1.8 3.2 28.5 16.0 0.6 0.5 2.0 3.4 0.6 0.6

Sadbhav Engg. Buy 139 182 2,097 2,789 3,147 10.6 10.7 8.4 10.4 16.5 13.4 2.2 1.9 15.0 15.6 0.9 0.8

Simplex Infra Buy 213 265 1,053 6,732 7,837 8.1 8.4 23.5 29.4 9.1 7.2 0.8 0.8 9.6 11.0 0.5 0.4

Financials Allahabad Bank Accumulate 135 153 6,760 7,467 8,685 3.2 3.3 37.5 41.5 3.6 3.3 0.6 0.5 18.1 17.4 - -

Andhra Bank Neutral 108 - 6,052 5,225 6,024 3.3 3.3 22.7 25.4 4.8 4.3 0.7 0.7 16.0 15.8 - -

Axis Bank Buy 1,039 1,373 43,039 15,961 19,583 3.1 3.2 117.3 143.1 8.9 7.3 1.6 1.4 20.1 20.8 - -

Bank of Baroda Buy 687 921 26,893 16,157 19,475 2.7 2.7 123.7 148.3 5.6 4.6 0.9 0.8 17.3 18.1 - -

Bank of India Buy 321 388 18,424 13,657 15,902 2.5 2.6 59.5 70.6 5.4 4.6 0.9 0.7 16.2 16.9 - -

Bank of Maharashtra Neutral 47 - 2,786 3,471 3,889 3.1 3.1 9.0 11.5 5.2 4.1 0.7 0.6 13.7 15.5 - -

Canara Bank Buy 384 477 17,029 12,296 14,445 2.4 2.5 81.5 92.2 4.7 4.2 0.8 0.7 16.4 16.3 - -

Central Bank Reduce 76 70 5,583 7,001 8,211 2.5 2.6 14.0 20.6 5.4 3.7 0.8 0.7 11.0 14.5 - -


July 25, 2012

Market Outlook

Stock Watch





Financials

Corporation Bank Accumulate 406 465 6,017 5,294 6,070 2.3 2.3 106.3 110.1 3.8 3.7 0.7 0.6 17.7 16.2 - -

Dena Bank Accumulate 97 106 3,378 3,170 3,577 2.9 2.9 22.8 25.3 4.2 3.8 0.7 0.6 17.2 16.6 - -

Federal Bank Neutral 407 - 6,958 2,736 3,165 3.4 3.4 49.3 57.4 8.3 7.1 1.1 1.0 13.9 14.5 - -

HDFC Neutral 674 - 100,761 7,340 8,805 3.5 3.5 31.5 37.8 21.4 17.8 4.3 3.8 34.8 32.2 - -

HDFC Bank Neutral 574 - 135,265 21,936 27,454 4.4 4.4 28.7 36.0 20.0 15.9 3.8 3.2 20.7 22.0 - -

ICICI Bank Buy 916 1,169 105,292 22,368 26,857 2.8 2.9 68.2 80.4 13.4 11.4 1.6 1.5 14.2 15.4 - -

IDBI Bank Buy 89 113 11,346 8,152 9,907 1.9 2.1 19.7 24.1 4.5 3.7 0.6 0.5 13.6 15.0 - -Indian Bank Neutral 191 - 8,206 6,294 7,191 3.4 3.4 40.6 44.9 4.7 4.3 0.8 0.7 18.1 17.4 - -

IOB Accumulate 82 91 6,511 7,578 8,662 2.6 2.7 17.2 22.5 4.7 3.6 0.6 0.5 12.1 14.3 - -

J & K Bank Accumulate 931 979 4,514 2,525 2,858 3.5 3.5 175.8 183.1 5.3 5.1 1.0 0.8 19.3 17.5 - -

LIC Housing Finance Buy 251 286 12,670 2,104 2,607 2.7 2.7 24.5 30.6 10.3 8.2 1.9 1.6 20.1 21.4 - -

Oriental Bank Accumulate 242 269 7,062 6,497 7,533 2.8 2.8 53.4 63.9 4.5 3.8 0.6 0.5 13.3 14.3 - -

Punjab Natl.Bank Buy 807 1,050 27,370 20,142 23,929 3.2 3.3 153.3 174.3 5.3 4.6 1.0 0.8 18.3 18.0 - -

South Ind.Bank Neutral 24 - 2,678 1,514 1,717 2.8 2.7 4.0 4.2 5.9 5.6 1.1 1.0 20.5 18.5 - -

St Bk of India Buy 2,095 2,443 140,570 67,783 78,208 3.7 3.6 226.0 264.2 9.3 7.9 1.5 1.3 17.7 18.1 - -

Syndicate Bank Buy 99 118 5,944 7,176 8,299 3.1 3.1 25.1 29.1 3.9 3.4 0.7 0.6 17.6 17.8 - -

UCO Bank Neutral 75 - 4,965 5,642 6,438 2.5 2.5 16.4 17.6 4.6 4.2 0.8 0.8 16.2 15.4 - -

Union Bank Buy 187 256 10,306 10,623 12,404 3.0 3.0 42.5 49.6 4.4 3.8 0.7 0.6 16.9 17.2 - -

United Bank Buy 57 78 2,056 3,599 4,212 2.8 3.0 18.2 22.3 3.1 2.6 0.5 0.4 15.0 16.2 - -

Vijaya Bank Reduce 56 52 2,758 2,695 3,097 2.2 2.3 9.6 12.0 5.8 4.6 0.7 0.6 12.0 13.6 - -

Yes Bank Buy 341 454 12,082 3,250 4,261 2.8 2.9 34.1 42.8 10.0 8.0 2.1 1.7 23.2 23.9 - -

FMCG

Asian Paints Neutral 3,564 - 34,190 11,423 13,309 16.3 16.3 125.3 148.4 28.5 24.0 9.7 7.6 38.0 35.4 2.9 2.5Britannia Buy 490 633 5,852 5,835 6,824 6.3 6.7 20.7 27.5 23.7 17.8 9.2 6.9 42.7 44.3 1.0 0.9

Colgate Neutral 1,166 - 15,857 3,007 3,417 21.1 22.1 38.2 43.8 30.5 26.7 36.3 28.5 130.2 119.9 5.1 4.5

Dabur India Neutral 118 - 20,608 5,878 6,799 16.8 17.0 4.2 4.9 28.5 24.1 10.3 8.4 39.3 42.0 3.5 3.0

GlaxoSmith Con* Neutral 2,656 - 11,170 3,124 3,663 17.1 17.6 103.0 123.3 25.8 21.6 8.0 6.4 34.0 32.9 3.3 2.7

Godrej Consumer Neutral 611 - 20,777 5,973 7,000 18.4 18.6 22.8 27.2 26.8 22.5 7.3 5.9 31.3 38.4 3.5 2.9

HUL Neutral 476 - 102,912 25,350 29,309 14.3 14.4 14.1 16.4 33.7 29.0 25.2 19.7 82.7 76.2 3.6 3.1

ITC Neutral 251 - 196,130 29,588 34,063 35.4 35.8 9.3 10.9 26.9 23.0 8.7 7.1 35.2 33.8 6.3 5.4


July 25, 2012

Market Outlook

Stock Watch





FMCG

Marico Neutral 188 - 12,130 4,667 5,427 12.8 12.9 6.6 8.1 28.3 23.2 7.6 5.9 30.0 28.8 2.5 2.1

Nestle* Neutral 4,453 - 42,932 8,731 10,539 21.0 21.4 114.4 143.0 38.9 31.1 23.5 16.1 71.1 61.4 5.0 4.0

Tata Global Buy 123 136 7,631 7,011 7,711 9.7 10.0 6.3 7.5 19.7 16.5 1.9 1.8 9.5 10.9 0.9 0.8

IT

HCL Tech Buy 482 562 33,389 24,029 26,633 18.3 17.2 39.6 43.2 12.2 11.2 2.8 2.3 22.9 21.0 1.3 1.2

Hexaware Buy 113 132 3,344 1,921 2,178 20.6 20.0 10.4 11.4 10.9 9.9 2.6 2.3 24.7 23.4 1.5 1.2

Infosys Buy 2,169 2,530 124,571 39,151 41,743 31.6 31.9 161.9 174.5 13.4 12.4 3.2 2.8 23.8 22.1 2.6 2.3Infotech Enterprises Accumulate 176 187 1,961 1,889 2,065 18.0 17.5 18.0 19.7 9.8 9.0 1.4 1.2 14.5 13.7 0.7 0.6

KPIT Cummins Neutral 126 - 2,240 2,145 2,316 16.0 14.8 9.9 11.3 12.6 11.1 2.5 2.0 20.8 19.1 1.0 0.9

Mahindra Satyam Accumulate 82 87 9,697 7,492 8,038 17.0 16.3 8.1 8.3 10.2 9.9 1.4 1.3 14.1 12.6 0.9 0.8

Mindtree Accumulate 654 708 2,663 2,341 2,513 18.6 17.1 66.5 70.8 9.9 9.3 2.2 1.8 22.3 19.3 1.0 0.8

Mphasis Neutral 399 - 8,378 5,704 6,009 18.6 17.7 36.0 37.1 11.1 10.8 1.6 1.4 14.0 12.6 1.0 0.9

NIIT Buy 41 52 684 1,162 1,304 14.8 15.1 7.1 8.8 5.8 4.7 1.0 0.9 16.7 18.4 0.4 0.3

Persistent Neutral 380 - 1,518 1,193 1,278 25.6 24.3 42.6 44.3 8.9 8.6 1.5 1.3 17.2 15.5 0.9 0.8

TCS Accumulate 1,209 1,304 236,628 61,046 67,507 29.3 29.1 67.3 72.4 18.0 16.7 5.7 4.7 31.9 28.3 3.7 3.3

Tech Mahindra Neutral 717 - 9,147 6,282 6,477 17.5 16.5 82.9 85.0 8.7 8.4 1.9 1.6 21.6 18.4 1.4 1.3

Wipro Buy 346 451 85,130 44,597 49,033 20.3 20.5 26.6 30.1 13.0 11.5 2.5 2.2 19.5 18.9 1.6 1.4

Media

D B Corp Buy 200 236 3,668 1,597 1,785 22.9 24.2 11.1 13.9 18.0 14.4 3.4 3.0 20.2 22.1 2.2 1.9

HT Media Buy 90 113 2,108 2,111 2,263 15.2 15.2 7.3 8.1 12.2 11.0 1.3 1.2 11.2 11.2 0.6 0.4

Jagran Prakashan Buy 88 125 2,780 1,521 1,698 22.6 23.1 6.2 6.4 14.3 13.6 3.5 3.0 20.7 23.9 2.1 1.8

PVR Neutral 163 - 422 625 732 16.5 15.7 11.9 13.3 13.7 12.2 1.3 1.2 11.9 12.0 1.1 0.9

Sun TV Network Neutral 287 - 11,292 2,002 2,296 77.1 76.7 18.9 22.1 15.2 13.0 3.9 3.4 27.7 28.3 5.0 4.2Metals & Mining

Bhushan Steel Reduce 471 429 10,006 11,408 13,773 31.0 30.0 53.7 60.8 8.8 7.8 1.3 1.1 15.3 14.9 2.6 2.2

Coal India Neutral 356 - 224,989 68,841 74,509 25.3 25.3 24.1 26.1 14.8 13.6 4.1 3.3 30.4 26.8 2.4 2.0

Electrosteel Castings Accumulate 20 22 683 1,984 2,074 11.2 12.6 2.0 2.7 9.7 7.3 0.4 0.1 4.2 5.5 0.5 0.5

Hind. Zinc Buy 117 142 49,373 12,446 13,538 56.1 56.6 15.2 16.5 7.7 7.1 1.5 1.3 21.7 19.8 2.1 1.5

Hindalco Accumulate 117 125 22,419 83,212 91,057 9.0 9.9 13.7 18.1 8.6 6.5 0.7 0.6 7.9 9.6 0.5 0.5

JSW Steel Neutral 670 - 14,942 39,592 44,910 18.0 17.7 74.7 88.9 9.0 7.5 0.9 0.8 10.7 11.6 0.7 0.7

MOIL Accumulate 273 296 4,582 1,007 1,091 56.6 56.9 29.4 31.9 9.3 8.6 1.7 1.5 19.0 18.2 2.4 1.9

Monnet Ispat Buy 388 447 2,496 3,115 3,748 22.1 25.1 59.1 66.8 6.6 5.8 0.9 0.8 15.6 15.3 1.5 1.1


July 25, 2012

Market Outlook

Stock Watch





Metals & Mining

Nalco Neutral 54 - 13,969 8,474 9,024 12.6 16.2 2.6 3.6 21.2 15.1 1.2 1.1 5.6 7.5 1.2 1.2

NMDC Neutral 188 - 74,616 11,959 13,062 78.2 78.6 19.1 20.9 9.9 9.0 2.4 2.0 27.1 24.4 4.1 3.6

SAIL Neutral 89 - 36,679 50,914 60,785 14.6 15.1 9.4 10.5 9.5 8.4 0.8 0.8 9.2 9.6 1.2 1.1

Sesa Goa Accumulate 186 195 16,170 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 34,312 45,294 48,059 25.7 25.3 16.5 18.0 6.2 5.7 0.7 0.6 12.0 11.2 0.4 0.3

Tata Steel Buy 397 499 38,557 143,088 148,011 10.9 12.1 53.9 66.0 7.4 6.0 0.9 0.8 12.2 13.4 0.6 0.6

Oil & GasCairn India Buy 323 380 61,664 16,605 17,258 75.4 71.7 57.0 54.9 5.7 5.9 1.0 0.9 20.2 16.3 2.7 2.1

GAIL Neutral 343 - 43,464 50,472 55,502 15.3 15.6 35.4 37.0 9.7 9.3 1.7 1.5 19.0 17.2 0.1 -

ONGC Accumulate 284 321 243,318 156,331 159,043 37.7 36.3 31.3 32.6 9.1 8.7 1.6 1.4 18.7 17.3 1.2 1.1

Reliance Industries Neutral 725 - 237,258 362,700 380,031 7.9 8.0 61.5 64.3 11.8 11.3 1.2 1.1 10.3 9.9 0.6 0.6

Pharmaceuticals

Alembic Pharma Buy 61 91 1,157 1,624 1,855 14.2 15.6 6.6 9.1 9.3 6.8 2.3 1.8 27.5 29.2 0.9 0.8

Aurobindo Pharma Buy 108 156 3,144 5,243 5,767 14.6 14.6 11.8 12.6 9.2 8.6 0.9 0.4 11.4 10.9 0.8 0.6

Aventis* Neutral 2,200 - 5,067 1,482 1,682 15.5 15.5 95.0 104.0 23.2 21.2 4.1 3.2 18.6 17.0 3.2 2.8

Cadila Healthcare Accumulate 855 953 17,503 6,196 7,443 18.5 19.5 37.6 47.7 22.7 17.9 5.1 4.1 26.8 27.5 2.8 2.3

Cipla Buy 326 379 26,163 7,687 8,804 21.4 21.4 16.5 18.9 19.8 17.2 3.1 2.7 16.7 16.8 3.4 2.9

Dr Reddy's Neutral 1,626 - 27,604 10,696 11,662 20.7 21.0 83.7 92.9 19.4 17.5 4.0 3.4 22.4 21.0 2.7 2.4

Dishman Pharma Buy 66 92 531 1,280 1,536 17.8 17.8 9.2 11.3 7.2 5.8 0.5 0.5 7.7 8.5 1.1 0.9

GSK Pharma* Neutral 2,108 - 17,852 2,651 2,993 31.7 31.2 76.0 82.4 27.7 25.6 8.0 6.9 30.8 29.0 5.7 4.9

Indoco Remedies Buy 56 82 518 685 837 15.2 15.2 7.4 8.9 7.6 6.3 1.1 1.0 15.9 16.3 0.9 0.7

Ipca labs Accumulate 396 435 5,000 2,850 3,474 20.3 20.3 31.9 36.3 12.4 10.9 3.8 3.0 26.2 26.8 1.9 1.6

Lupin Accumulate 582 647 26,017 8,426 10,082 19.7 20.0 27.4 32.4 21.3 18.0 5.1 4.1 27.0 25.2 2.9 2.4Orchid Chemicals Buy 125 178 879 2,117 2,434 17.7 17.7 16.7 22.2 7.5 5.6 0.7 0.6 9.5 11.5 1.1 0.9

Ranbaxy* Neutral 489 - 20,642 12,046 11,980 18.0 15.8 35.7 29.8 13.7 16.4 5.1 4.2 43.1 28.1 1.7 1.6

Sun Pharma Neutral 608 - 62,644 9,272 11,080 38.6 38.0 22.7 22.6 26.8 26.9 4.5 4.0 17.9 15.6 5.5 4.3

Power

CESC Accumulate 296 342 3,697 5,084 5,512 24.2 23.8 45.2 48.5 6.6 6.1 0.7 0.6 11.2 10.9 1.2 1.2

GIPCL Buy 64 77 967 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 153 - 125,991 74,766 86,549 23.1 23.4 12.4 14.1 12.3 10.9 1.5 1.4 13.0 13.5 2.4 2.2

Real Estate

Anant Raj Buy 49 78 1,447 657 875 52.0 56.1 8.4 12.7 5.8 3.9 0.4 0.3 6.3 8.9 3.5 2.7

DLF Neutral 201 - 34,062 9,878 12,033 44.7 46.1 9.6 13.4 20.9 15.0 1.3 1.3 6.4 8.7 5.9 4.9


July 25, 2012

Market Outlook

Stock Watch





Real Estate

HDIL Buy 73 115 3,046 2,441 3,344 55.1 48.2 22.7 26.6 3.2 2.7 0.3 0.2 8.8 9.4 3.2 2.4

MLIFE Buy 319 376 1,302 814 897 26.9 27.0 31.3 33.9 10.2 9.4 1.0 1.0 10.2 10.1 2.0 1.7

Telecom

Bharti Airtel Neutral 308 - 117,021 80,076 86,613 32.8 33.5 15.5 19.8 20.0 15.5 2.1 1.9 10.5 11.9 2.1 1.8

Idea Cellular Neutral 81 - 26,693 23,209 26,063 26.2 27.5 3.3 4.9 24.5 16.3 1.9 1.7 7.7 10.3 1.6 1.4

Rcom Neutral 60 - 12,394 22,125 23,734 31.9 32.0 4.5 5.9 13.4 10.3 0.3 0.3 2.5 3.1 2.0 1.7

zOthers Abbott India Accumulate 1,474 1,628 3,132 1,661 1,918 9.7 12.0 60.7 90.4 24.3 16.3 5.0 4.0 22.0 27.3 1.7 1.4

Bajaj Electricals Buy 182 246 1,811 3,569 4,172 8.6 9.2 17.3 22.3 10.5 8.1 2.3 1.9 22.9 25.3 0.5 0.4

Cera Sanitaryware Accumulate 298 327 377 405 477 15.8 17.2 31.0 41.0 9.6 7.3 2.1 1.7 24.3 25.8 1.1 1.0

Cravatex Buy 655 785 169 302 364 5.7 6.0 49.0 71.0 13.4 9.2 4.0 2.8 29.8 30.7 0.7 0.5

CRISIL Neutral 972 - 6,820 982 1,136 34.3 34.3 34.3 40.0 28.3 24.3 12.8 10.3 50.9 46.9 6.6 5.5

Finolex Cables Buy 40 61 617 2,334 2,687 8.8 9.3 7.6 10.2 5.3 4.0 0.7 0.6 13.7 16.1 0.2 0.1

Force Motors Buy 462 615 602 2,346 2,753 5.8 6.7 44.0 68.0 10.5 6.8 0.5 0.5 4.8 7.0 0.2 0.2

Goodyear India Buy 316 374 728 1,511 1,692 7.9 9.0 31.5 41.3 10.0 7.7 2.0 1.7 21.2 23.5 0.3 0.2

Graphite India Buy 82 124 1,608 2,158 2,406 18.1 18.9 12.4 14.0 6.6 5.9 0.9 0.8 14.0 14.3 0.9 0.7

Greenply Industries Buy 191 309 460 1,925 2,235 10.6 10.9 29.6 44.1 6.5 4.3 1.1 0.9 16.8 21.0 0.5 0.4

HEG Buy 209 242 834 1,746 1,946 16.5 17.7 22.5 32.9 9.3 6.3 0.9 0.9 10.4 14.2 1.1 1.0

Hitachi Buy 113 160 259 857 968 6.9 8.4 10.2 16.0 11.1 7.1 1.4 1.2 12.9 17.8 0.4 0.4

Honeywell Automation Buy 2,395 2,864 2,117 1,761 2,024 6.7 8.2 95.0 127.0 25.2 18.9 3.0 2.5 14.1 16.3 1.1 1.0

INEOS ABS India Buy 677 804 1,191 900 1,020 9.0 11.1 33.0 45.0 20.5 15.1 2.8 2.4 14.3 17.0 1.1 0.9

ITD Cementation Neutral 234 - 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 121 268 1,944 1,315 1,568 8.6 11.1 6.4 10.9 18.9 11.1 1.6 1.5 8.4 13.9 1.8 1.5MCX Buy 1,075 1,598 5,482 610 702 65.5 67.0 67.9 79.9 15.8 13.5 4.6 3.9 29.1 28.9 6.1 4.8

MRF Buy 9,947 13,106 4,219 12,390 14,400 10.4 11.3 1,334.6 1,638.2 7.5 6.1 1.5 1.2 16.5 17.4 0.5 0.5

Page Industries Neutral 2,844 - 3,172 887 1,108 18.3 18.6 95.0 120.9 29.9 23.5 15.6 12.7 57.4 59.5 3.6 2.9

Relaxo Footwears Buy 534 618 641 1,019 1,220 11.2 12.2 44.2 61.8 12.1 8.6 2.9 2.2 26.8 28.6 0.8 0.7

Sintex Industries Buy 61 79 1,678 4,751 5,189 16.3 16.6 13.6 15.8 4.5 3.9 0.6 0.5 12.9 13.2 0.7 0.6

Siyaram Silk Mills Buy 289 392 271 1,042 1,173 12.4 12.5 66.3 78.5 4.4 3.7 0.8 0.7 21.1 20.8 0.5 0.4

S. Kumars Nationwide Buy 31 45 935 7,279 8,290 21.0 21.0 15.0 17.6 2.1 1.8 0.3 0.2 13.7 13.9 0.7 0.7

SpiceJet Buy 32 40 1,531 5,647 6,513 3.5 6.5 1.9 4.9 16.3 6.5 38.2 5.5 - - 0.4 0.4


July 25, 2012

Market Outlook

Stock Watch





zOthers

TAJ GVK Buy 66 108 411 300 319 35.8 36.2 7.9 9.1 8.3 7.2 1.1 1.0 13.9 14.4 1.7 1.4

Tata Sponge Iron Buy 344 420 530 700 806 18.2 18.2 55.6 65.1 6.2 5.3 0.8 0.7 14.2 14.8 0.4 0.2

TVS Srichakra Buy 338 462 259 1,612 1,827 9.5 9.8 72.3 92.5 4.7 3.7 1.4 1.0 33.1 32.1 0.4 0.4

United Spirits Neutral 786 - 10,274 10,289 11,421 13.5 14.3 31.0 42.9 25.3 18.3 2.0 1.8 8.1 10.3 1.7 1.5

Vesuvius India Accumulate 367 413 745 628 716 16.4 16.5 29.8 34.4 12.3 10.7 2.2 1.8 18.8 18.6 1.0 0.8

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on July 24, 2012


July 25, 2012

Market Outlook

Stock Watch



July 25, 2012

Market Outlook

Documents

Market Outlook 250712