market outlook 220812

7/31/2019 Market Outlook 220812

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2/14

www.angelbroking.com

Market OutlookAugust 22, 2012

CPI inflation for July 2012 eases to 9.86%

Consumer Price Index (CPI) inflation for the month of July 2012 eased marginally

to 9.86%, on a yoy basis, as compared to 9.93% in June 2012. Inflation in rural

areas stands at 9.76% during July 2012 as against 9.65% in the month of June2012. Inflation for June 2012 was revised downwards to 9.93 from the provisional

estimate of 10.02% recorded earlier.

Inflation in urban areas is 10.1% in the July 2012 as compared to 10.44% in June

2012. Inflation in the Food and Beverages category stayed elevated above the

10% mark at 11.53% for the Combined Index as compared to 11.33% for rural

consumers and 12.15% for urban consumers. Inflation in Food and Beverages

was led by high vegetable prices followed by high prices in edible oils and pulses.

The Combined Index for Fuel and Light witnessed a deceleration to 7.36% in July

as compared 10.34 in June. Inflation in Housing as well as Clothing, Bedding

and Footwear recorded an increase of 10.65% and 11.02% respectively for themonth of July 2012. Inflation in the Miscellaneous Category comprising transport

and communication, education, recreation etc slipped to 7.62% in July 2012 as

compared to 8.16% in June 2012.

Headline inflation, as measured by the Wholesale Price Index (WPI), also eased to

6.87% in July 2012 as compared to 7.25% in June 2012 driven by a moderation

in food and fuel prices as well as a high base effect. However, we expect that the

moderation in inflation is a temporary phenomenon and upside risks to inflation

continue to persist due to factors like structural supply-side constraints in

agriculture, high MSP price increase for Kharif crops, deficiency of rainfall in most

parts of the country, the impending deregulation of diesel prices and increase in

prices of crude oil, retail petrol and electricity tariff during the month of August.

Therefore, we believe that the RBI is unlikely to cut interest rates in its Mid-Quarter

Review of the Monetary Policy in September 2012.

Relief for Infosys as U.S. court dismisses visa case

A U.S. court has dismissed whistleblower harassment charges against Infosys filed

by its employee - Jack Palmer, as no basis to support any of the allegations was

found. Reacting to the development, Infosys asserted that the company is built on

core values and is led by integrity and transparency.

In February 2011, Palmer had filed a lawsuit in an Alabama court accusing the

company of visa fraud saying he was asked by the firm to sign on documents

which said workers were heading to the U.S. to have meetings rather than to work

there, which he claimed was done to creatively overcome H1-B visa caps. He had

also alleged Indian workers in his team were paid substantially less than an

American would have made on the same job. After mediation efforts between

Palmer and Infosys failed, the case went to trial on August 20. Finding no basis to

support any of the charges filed by Palmer, the judge ordered that all other

pending motions are "denied as moot" and all pending objections are overruled as

moot, according to the court documents.


3/14



L&T bags orders worth `2,044cr

Larsen & Toubro's (L&T) Construction arm has bagged orders worth `2,044cr

across various business segments in 2QFY2013. The Infrastructure IC of L&T

Construction bagged a major order worth `781cr from NTPC Hydro Limited for

the construction of 171MW Lata Tapovan Hydroelectric Power Project inUttarakhand. The project will be executed on an EPC basis. In the roads sector, the

Infrastructure IC bagged an EPC order of `645cr from GMR Infrastructure for

construction of significant stretches of the Kishangarh Udaipur Ahmedabad

Highway. The project is part of Phase V of the National Highway Development

Programme of National Highway Authority of India. The Buildings & Factories IC,

secured new order worth `360cr for the construction of residential towers. The

project involves the construction of 23 multistoried towers. The Power Transmission

& Distribution IC has secured a major order worth `258cr from UAE for the supply

and installation of 220/33 kV grid station and related 220 kV cabling and

overhead lines work.

At the CMP of `1,467, the stock is trading at PE of 14.9x FY2014E earnings, after

adjusting for investments, which is below the historical trading multiple for L&T. 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 `1,553.

L&T looking to sell equity in infrastructure projects

As per media reports, Larsen & Toubro (L&T) is looking to sell stake in some of its

port, road, power and metro rail projects. As returns on developmental projects

are typically back-ended hence L&T is looking to unlock value through churning of

mature assets within the portfolio and through equity partnership. L&T

Infrastructure Development Projects (L&T IDPL), a subsidiary of the parent company

that functions as the infrastructure development arm of the group has a diversified

portfolio with a mix of projects under development across various sectors. The

offloading of stake could be aimed at both reducing the portfolio size of the

company as well as generating funds that could be used as equity in new projects.

However, there is no clarity as of now on the projects where stakes would be

diluted nor the amount the company was hoping to mop up through the process.

At the CMP of `1,467, the stock is trading at PE of 14.9x FY2014E earnings, after

adjusting for investments, which is below the historical trading multiple for L&T. 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 `1,553.


4/14



NMDC raises ore prices for July-September quarter

NMDC has hiked prices of fines by 8% and for lumps by 13% for July- September

quarter. The quantum of hike has surprised us positively. The price of lumps with

65% Fe content would be around `6,100/tonne and `3,000/tonne for

fines. During April-June quarter also NMDC had raised prices of iron ore by 10%.

The hike in price over the last two quarters is mainly due to shortage of good

quality iron ore in the domestic market. Thus, we raise our realization assumptions

for FY2013 and FY20014.

Revision in estimates

Blended realization 4,120 4,160 4,408 4,450 7.0 7.0

Net sales 12,093 13,338 12,934 14,266 7.0 7.0

EBITDA 9,476 10,530 10,275 11,421 8.4 8.5

EBITDA margin (%) 78.4 78.9 79.4 80.1 109bp 110bp

PBT 11,519 12,784 12,461 13,832 8.2 8.2

PAT 7,718 8,565 8,349 9,267 8.2 8.2

PAT margin (%) 63.8 64.2 64.5 65.0 73bp 74bp

EPS 19.5 21.6 21.1 23.4 8.2 8.2

Source: Company, Angel Research

Sesa Goas coke plant commissioning delayed by three weeks

The commissioning of Sesa Goas metallurgical coke plants expansion facility at

Amona village has been delayed by three weeks after two high-capacity diesel

burners misfired. We do not expect material impact on Sesa Goas financials as

the plant is only delayed by three weeks. Sesa Goa operates a 280,000 tonne

metallurgical coke manufacturing plant since 1994 at Amona, Navelim and is

expected to increase capacity by another 280,000 by FY2013.

Economic and Political News BJP ruled states had opposed coal block auctions: Sibal 6 rain-deficit states seek `43,461cr relief CBI may register multiple FIRs in coal scam Not planning to deregulate diesel, LPG, kerosene: GovernmentCorporate News Maruti reopens Manesar factory L&T gets notice for non-payment of `160-cr excise duty

Sesa Goa's pig iron production capacity rises to 0.625 MTPA State Bank of Mysore appoints Sharad Sharma as MD

Source: Economic Times, Business Standard, Business Line, Financial Express, Mint


5/14

Global economic events release calendar

Date Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

August 22, 2012 US Existing home sales Millions Jul 4.37 4.51

August 23, 2012 US Initial Jobless claims Thousands Aug 18 366.00 365.00Germany GDP nsa (YoY) % Change 2Q F 0.50 0.50

Germany PMI Services Value Aug A 50.30 50.10

Germany PMI Manufacturing Value Aug A 43.00 43.40

Euro ZoneEuro-Zone ConsumerConfidence

Value Aug A (21.50) (22.00)

US New home sales Thousands Jul 350.00 365.00

August 24, 2012 UK GDP (YoY) % Change 2Q P (0.80) (0.60)

August 28, 2012 US Consumer ConfidenceS.A./

1985=100Aug 65.90 65.00

August 29, 2012 US GDP Qoq (Annualised) % Change 2Q S 1.50 1.70

August 30, 2012 Germany Unemployment change (000's) Thousands Aug 7.00 --

August 31, 2012 India Qtrly GDP YoY% % Change 2Q 5.30 --

September 01, 2012 China PMI Manufacturing Value Aug 50.10 --

September 03, 2012 India Imports YoY% % Change Jul (13.46) --

India Exports YoY% % Change Jul (5.45) --

UK PMI Manufacturing Value Aug 45.40 --

September 06, 2012 Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 2Q P (0.20) --

UK BOE Announces rates % Ratio Sep 6 0.50 0.50

Euro Zone ECB announces interest rates % Sep 6 0.75 --

September 07, 2012 UK Industrial Production (YoY) % Change Jul (4.30) --

US Change in Nonfarm payrolls Thousands Aug 163.00 --US Unnemployment rate % Aug 8.30 --

September 09, 2012 China Industrial Production (YoY) % Change Aug 9.20 --

China Consumer Price Index (YoY) % Change Aug 1.80 --

September 10, 2012 China Exports YoY% % Change Aug 1.00 --

September 12, 2012 UK Jobless claims change % Change Aug (5.90) --

India Industrial Production YoY % Change Jul (1.80) --

September 13, 2012 US Producer Price Index (mom) % Change Aug 0.30 --

US FOMC rate decision % Sep 13 0.25 --

September 14, 2012 Euro Zone Euro-Zone CPI (YoY) % Aug 2.40 --

India Monthly Wholesale PricesYoY% % Change Aug 6.87 --

US Industrial Production % Aug 0.65 --

US Consumer price index (mom) % Change Aug -- --

September 17, 2012 India RBI Repo rate % Sep 17 8.00 --

India RBI Cash Reserve ratio % Sep 17 4.75 --

India RBI Reverse Repo rate % Sep 17 7.00 --

Source: Bloomberg, Angel Research


August 22, 2012

Market Outlook


6/14

Market StrategyAugust 22, 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

4Q

FY09

1Q

FY10

2Q

FY10

3Q

FY10

4Q

FY10

1Q

FY11

2Q

FY11

3Q

FY11

4Q

FY11

1Q

FY12

2Q

FY12

3Q

FY12

4Q

FY12

(%)

Source: CSO, Ang el Research

Exhibit 2 :IIP trends

3 .7 3. 42. 5

(5.0)

6. 0

2 .7

1. 0

4. 3

(2.8) (0.9)

2. 5

(1.8)

(6.0)

(4.0)

(2.0)

-

2. 0

4. 0

6. 0

8. 0

Ju

l-11

Aug

-11

Sep

-11

O

ct-11

Nov

-11

Dec

-11

Jan

-12

Fe

b-1

2

M

ar

-12

Apr

-12

M

ay

-12

Jun

-12

(%)

Source: M O SPI, Ang el Research

Exhibit 3 :M onthly WPI inflation trends

9. 8 10.0 9. 9 9. 5

7. 76. 9

7. 4 7. 7 7. 5 7. 6 7. 3 6. 9

0. 0

2. 0

4. 0

6. 0

8. 0

10.0

12.0

Aug

-11

Sep

-11

O

ct-11

Nov

-11

Dec

-11

Jan

-12

Fe

b-

12

M

ar-

12

Apr-

12

M

ay

-12

Jun

-12

Ju

l-12

(%)

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

Ju

l-11

Aug

-11

Sep

-11

O

ct-11

Nov

-11

Dec

-11

Jan

-12

Fe

b-1

2

M

ar

-12

Apr

-12

M

ay

-12

Jun

-12

Ju

l-12

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

(30.0)

(15.0)

0. 0

15.0

30.0

45.0

60.0

75.0

Ju

l-11

Aug

-11

Sep

-11

O

ct-11

Nov

-11

Dec

-11

Jan

-12

Fe

b-1

2

M

ar

-12

Apr

-12

M

ay

-12

Jun

-12

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

Source: Bloomberg, Angel Research

Exhibit 6 :Key policy rates

4.00

5.00

6.00

7.00

8.00

9.00

Aug

-11

Sep

-11

O

ct-11

Nov

-11

Dec

-11

Jan

-12

Fe

b-1

2

M

ar-

12

Apr-

12

M

ay

-12

Jun

-12

Ju

l-12

Aug

-12

Repo rate Reverse Repo rate C RR(%)

Source: RBI, Angel Research


7/14

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

Agri / Agri Chemical

Rallis Neutral 129 - 2,499 1,466 1,686 14.8 14.8 7.0 8.1 18.4 15.9 3.9 3.3 22.6 22.5 1.8 1.5

United Phosphorus Buy 112 170 5,156 8,421 9,263 16.5 16.5 15.0 17.0 7.5 6.6 1.1 1.0 15.6 15.5 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Neutral 391 - 3,343 2,844 3,213 15.5 15.5 31.5 35.3 12.4 11.1 3.2 2.5 28.7 25.4 1.1 0.9

Apollo Tyres Neutral 95 - 4,793 13,412 15,041 11.0 11.0 11.5 14.2 8.3 6.7 1.4 1.2 18.7 19.4 0.5 0.4

Ashok Leyland Buy 22 30 5,853 14,920 16,850 9.0 9.3 2.2 2.8 10.1 8.0 1.9 1.6 13.3 15.6 0.5 0.4

Automotive Axle Buy 338 430 511 993 1,140 11.6 11.5 36.9 43.0 9.2 7.9 1.8 1.6 21.2 21.3 0.6 0.4Bajaj Auto Neutral 1,712 - 49,543 21,285 23,927 18.2 18.3 108.5 121.3 15.8 14.1 6.5 5.3 46.1 41.3 2.0 1.7

Bharat Forge Buy 294 351 6,842 7,004 7,985 16.2 16.4 20.3 25.1 14.5 11.7 2.7 2.3 20.0 20.9 1.2 1.0

Bosch India Neutral 8,760 - 27,505 9,034 10,286 17.8 18.3 373.6 435.8 23.5 20.1 4.8 4.0 20.5 19.8 2.7 2.3

CEAT Buy 120 164 411 4,989 5,634 8.7 8.5 32.7 41.1 3.7 2.9 0.5 0.5 15.8 16.9 0.3 0.2

Exide Industries Buy 129 149 10,952 5,899 6,771 16.0 17.0 7.4 9.1 17.5 14.1 3.1 2.7 19.0 20.2 1.5 1.3

FAG Bearings Neutral 1,616 - 2,685 1,505 1,747 17.7 18.0 111.5 130.0 14.5 12.4 3.0 2.5 22.8 21.7 1.5 1.2

Hero Motocorp Buy 1,919 2,428 38,316 26,097 29,963 15.0 15.3 139.5 151.8 13.8 12.6 6.5 4.9 54.6 44.3 1.2 1.0

JK Tyre Buy 116 135 475 7,517 8,329 6.1 6.3 26.2 38.5 4.4 3.0 0.6 0.5 13.4 17.2 0.3 0.3

Mahindra and Mahindra Accumulate 784 879 48,139 36,536 41,650 11.6 11.5 49.3 54.9 15.9 14.3 3.3 2.8 22.1 21.1 1.1 0.9

Maruti Neutral 1,185 - 34,239 42,887 49,079 5.5 6.6 66.8 87.6 17.7 13.5 2.0 1.8 12.1 14.1 0.6 0.5

Motherson Sumi Buy 185 216 7,231 23,342 26,366 7.8 8.2 13.3 18.0 13.9 10.3 3.3 2.6 26.2 28.4 0.5 0.4

Subros Accumulate 31 34 185 1,230 1,378 8.8 8.6 4.5 5.7 6.8 5.4 0.7 0.6 9.8 11.8 0.4 0.4

Tata Motors Buy 246 292 65,602 195,096 219,428 12.8 12.8 39.0 43.9 6.3 5.6 1.8 1.4 32.6 28.2 0.4 0.3

TVS Motor Accumulate 40 43 1,891 7,545 8,301 6.2 6.1 4.9 5.4 8.1 7.4 1.4 1.3 18.8 18.2 0.2 0.2

Capital Goods

ABB* Sell 770 498 16,324 8,760 10,023 5.5 7.5 12.4 20.7 62.0 37.1 5.9 5.3 10.1 15.2 1.8 1.6BGR Energy Neutral 274 - 1,980 3,669 4,561 11.0 11.0 24.7 29.6 11.1 9.3 1.6 1.5 15.3 16.7 - 0.6

BHEL Neutral 232 - 56,699 47,801 43,757 19.4 19.8 25.7 23.9 9.0 9.7 1.9 1.7 22.7 18.3 1.1 0.9

Blue Star Neutral 187 - 1,678 3,047 3,328 5.4 6.9 12.5 16.2 15.0 11.5 3.6 3.0 26.1 28.2 0.7 0.5

Crompton Greaves Accumulate 120 128 7,679 12,691 14,096 7.0 8.5 6.5 9.1 18.4 13.1 2.0 1.8 11.1 14.2 0.6 0.6

Jyoti Structures Buy 39 67 317 2,622 2,801 10.6 11.0 10.9 13.4 3.5 2.9 0.5 0.4 13.7 14.9 0.3 0.3

KEC International Buy 60 69 1,530 6,858 7,431 7.5 8.3 9.0 11.5 6.6 5.2 1.2 1.0 26.9 27.2 0.3 0.3

LMW Neutral 1,918 - 2,161 2,369 2,727 11.7 11.7 143.4 166.0 13.4 11.6 2.2 2.0 17.4 18.4 0.4 0.3

Thermax Neutral 507 - 6,045 5,514 5,559 8.9 9.6 26.9 28.4 18.9 17.9 3.3 2.9 18.4 17.1 1.1 1.0


August 22, 2012

Market Outlook

Stock Watch


8/14



Cement

ACC Neutral 1,356 - 25,462 11,220 12,896 20.0 20.6 71.1 81.2 19.1 16.7 3.4 3.0 18.1 19.0 2.0 1.6

Ambuja Cements Neutral 194 - 29,865 10,205 11,659 24.6 24.2 10.8 12.0 17.9 16.1 3.7 3.4 19.7 19.8 2.5 2.1

India Cements Neutral 87 - 2,669 4,393 4,914 19.3 19.5 10.1 12.7 8.6 6.8 0.7 0.7 8.8 10.6 1.1 0.9

J K Lakshmi Cements Neutral 96 - 1,179 1,964 2,278 19.5 20.4 16.3 17.9 5.9 5.4 0.9 0.8 14.7 14.6 0.8 1.1

Madras Cements Neutral 180 - 4,285 3,608 3,928 27.4 26.9 15.6 18.1 11.5 10.0 1.8 1.6 16.8 16.9 1.8 1.5

Shree Cements Neutral 3,282 - 11,435 5,519 6,293 24.5 23.7 156.6 225.3 21.0 14.6 5.2 4.5 22.3 26.0 1.8 1.4

UltraTech Cement Neutral 1,717 - 47,074 20,167 22,752 21.7 23.0 90.8 107.8 18.9 15.9 18.9 15.9 - - 1.9 1.8Construction

Ashoka Buildcon Buy 259 304 1,363 2,014 2,293 22.4 22.4 22.6 26.7 11.5 9.7 1.2 1.1 11.4 11.9 2.5 2.8

Consolidated Co Neutral 15 - 273 2,262 2,522 6.7 7.5 1.5 2.7 10.0 5.6 0.4 0.4 4.4 7.5 0.4 0.4

Hind. Const. Neutral 17 - 1,028 4,239 4,522 9.9 11.2 (2.3) (1.0) (7.5) (17.6) 0.9 1.1 (11.4) (5.6) 1.2 1.2

IRB Infra Buy 126 166 4,176 3,964 4,582 42.3 40.2 15.5 16.9 8.1 7.4 1.3 1.1 16.6 15.8 2.6 2.5

ITNL Buy 170 232 3,304 6,840 7,767 26.4 26.1 24.4 28.4 7.0 6.0 1.1 0.9 16.0 16.2 2.7 2.8

IVRCL Infra Buy 44 61 1,187 5,510 6,722 8.8 9.0 2.5 4.6 17.6 9.7 0.6 0.6 3.4 5.8 0.7 0.6

Jaiprakash Asso. Buy 77 91 16,427 15,259 17,502 25.7 24.7 4.2 5.0 18.2 15.4 1.5 1.4 8.5 9.3 2.4 2.1

Larsen & Toubro Accumulate 1,467 1,553 90,031 60,474 69,091 12.1 11.5 79.7 85.4 18.4 17.2 3.1 2.7 16.3 15.1 1.6 1.5

Madhucon Proj Buy 34 56 253 2,206 2,502 10.7 10.7 4.6 4.7 7.4 7.3 0.4 0.4 5.2 5.0 0.7 0.7

Nagarjuna Const. Accumulate 41 45 1,047 5,804 6,513 8.0 8.6 3.0 3.5 13.4 11.7 0.4 0.4 3.2 3.6 0.6 0.7

Patel Engg. Neutral 79 - 552 3,609 3,836 13.1 13.1 14.0 14.6 5.6 5.4 0.3 0.3 6.3 6.1 1.0 1.0

Punj Lloyd Neutral 52 - 1,710 11,892 13,116 8.9 8.9 1.7 3.1 30.4 16.7 0.6 0.6 1.9 3.4 0.6 0.5

Sadbhav Engg. Buy 136 182 2,047 2,789 3,147 10.6 10.7 8.4 10.4 16.1 13.1 2.2 1.9 15.0 15.6 0.9 0.8

Simplex Infra Buy 207 265 1,024 6,732 7,837 8.1 8.4 23.5 29.4 8.8 7.0 0.8 0.7 9.6 11.0 0.5 0.4

FinancialsAllahabad Bank Neutral 128 - 6,378 7,233 8,579 3.1 3.3 40.5 40.9 3.2 3.1 0.6 0.5 19.4 17.0 - -

Andhra Bank Neutral 98 - 5,501 4,959 5,787 3.1 3.1 22.7 24.5 4.3 4.0 0.7 0.6 16.0 15.3 - -

Axis Bank Buy 1,111 1,373 46,055 15,961 19,583 3.1 3.2 117.3 143.1 9.5 7.8 1.8 1.5 20.1 20.8 - -

Bank of Baroda Buy 636 829 24,918 15,830 19,300 2.6 2.7 118.9 147.1 5.4 4.3 0.8 0.7 16.7 18.0 - -

Bank of India Buy 278 323 15,928 13,159 15,851 2.4 2.5 61.1 71.1 4.6 3.9 0.8 0.7 16.6 17.0 - -

Bank of Maharashtra Neutral 46 - 2,686 3,471 3,889 3.1 3.1 9.0 11.5 5.0 4.0 0.7 0.6 13.7 15.5 - -

Canara Bank Buy 345 421 15,264 11,334 13,629 2.2 2.3 75.4 85.1 4.6 4.1 0.7 0.6 15.2 15.3 - -

Central Bank Neutral 69 - 5,076 7,181 8,365 2.5 2.7 16.3 21.8 4.2 3.2 0.7 0.6 12.7 15.1 - -


August 22, 2012

Market Outlook

Stock Watch


9/14



Financials

Corporation Bank Accumulate 389 436 5,758 5,067 5,998 2.1 2.3 105.6 111.0 3.7 3.5 0.6 0.6 17.6 16.3 - -

Dena Bank Buy 91 107 3,168 3,177 3,595 2.8 2.8 25.2 25.4 3.6 3.6 0.6 0.6 18.9 16.4 - -

Federal Bank Neutral 438 - 7,485 2,697 3,171 3.4 3.4 47.9 58.0 9.2 7.6 1.2 1.1 13.6 14.7 - -

HDFC Reduce 733 671 111,234 7,340 8,805 3.5 3.5 31.5 37.8 23.3 19.4 4.7 4.1 34.8 32.2 - -

HDFC Bank Neutral 597 - 140,690 21,936 27,454 4.4 4.4 28.7 36.0 20.8 16.6 4.0 3.4 20.7 22.0 - -

ICICI Bank Buy 974 1,169 111,956 22,356 27,157 2.9 3.0 68.7 82.0 14.2 11.9 1.7 1.6 14.2 15.5 - -

IDBI Bank Buy 88 101 11,218 7,952 9,876 1.9 2.2 18.5 23.6 4.8 3.7 0.6 0.5 12.8 14.7 - -Indian Bank Accumulate 170 190 7,306 6,294 7,191 3.4 3.4 40.6 44.9 4.2 3.8 0.7 0.6 18.1 17.4 - -

IOB Accumulate 73 80 5,778 7,473 8,732 2.5 2.5 16.7 22.6 4.3 3.2 0.5 0.5 11.8 14.4 - -

J & K Bank Accumulate 930 1,026 4,507 2,625 2,921 3.6 3.5 194.4 191.9 4.8 4.9 0.9 0.8 21.2 18.0 - -

LIC Housing Finance Accumulate 257 279 12,945 1,867 2,338 2.4 2.4 21.1 28.5 12.2 9.0 2.0 1.7 17.5 20.4 - -

Oriental Bank Buy 234 278 6,830 6,518 7,458 2.8 2.9 61.3 65.1 3.8 3.6 0.6 0.5 15.2 14.3 - -

Punjab Natl.Bank Buy 720 950 24,409 20,116 23,625 3.3 3.4 152.8 173.9 4.7 4.1 0.9 0.7 18.2 18.0 - -

South Ind.Bank Buy 23 27 2,606 1,514 1,717 2.8 2.7 4.0 4.2 5.8 5.5 1.1 1.0 20.5 18.5 - -

St Bk of India Buy 1,914 2,270 128,428 64,470 75,940 3.5 3.5 224.4 258.7 8.5 7.4 1.4 1.2 17.6 17.8 - -

Syndicate Bank Buy 97 119 5,857 6,840 7,996 2.9 3.0 25.7 29.2 3.8 3.3 0.6 0.6 17.9 17.8 - -

UCO Bank Neutral 68 - 4,550 5,488 6,338 2.4 2.5 17.3 17.7 4.0 3.9 0.8 0.7 17.0 15.3 - -

Union Bank Buy 166 230 9,114 10,299 12,227 2.9 3.0 42.1 49.3 3.9 3.4 0.7 0.6 16.7 17.1 - -

United Bank Buy 54 79 1,957 3,634 4,194 2.8 2.9 18.2 23.0 3.0 2.4 0.4 0.4 15.0 16.7 - -

Vijaya Bank Neutral 52 - 2,574 2,579 3,028 2.1 2.3 8.8 11.6 5.9 4.5 0.7 0.6 11.1 13.3 - -

Yes Bank Buy 358 453 12,717 3,255 4,228 2.8 3.0 34.2 42.7 10.5 8.4 2.2 1.8 23.3 23.8 - -

FMCG

Asian Paints Neutral 3,693 - 35,428 11,198 13,184 16.3 16.3 121.0 144.8 30.5 25.5 10.2 8.1 37.4 35.3 3.1 2.6Britannia Buy 474 584 5,664 5,835 6,824 5.7 6.0 20.7 25.4 22.9 18.7 9.0 6.9 43.1 41.9 0.9 0.7

Colgate Neutral 1,169 - 15,900 3,018 3,429 20.9 22.3 34.6 41.0 33.8 28.5 31.1 23.6 99.5 94.1 5.1 4.5

Dabur India Neutral 119 - 20,765 6,124 7,030 17.0 16.8 4.5 5.2 26.7 23.0 11.0 8.7 43.2 41.5 3.4 2.9

GlaxoSmith Con* Neutral 2,812 - 11,825 3,124 3,663 17.1 17.6 104.5 123.8 26.9 22.7 8.4 6.7 34.4 32.8 3.4 2.9

Godrej Consumer Neutral 665 - 22,618 6,097 7,233 18.4 18.6 21.9 26.5 30.4 25.1 6.7 5.6 25.5 25.4 3.9 3.2

HUL Neutral 514 - 111,013 25,350 28,974 13.9 13.9 14.3 16.5 36.0 31.2 21.4 16.5 70.9 59.8 4.2 3.6

ITC Neutral 261 - 204,521 29,513 33,885 35.4 35.8 9.3 10.8 28.1 24.2 9.3 7.8 35.6 35.0 6.6 5.7


August 22, 2012

Market Outlook

Stock Watch


10/14



FMCG

Marico Neutral 192 - 12,362 4,840 5,643 13.1 13.1 6.8 8.5 28.3 22.7 7.8 5.9 31.4 29.7 2.6 2.1

Nestle* Neutral 4,591 - 44,264 8,610 10,174 20.9 21.2 114.8 139.8 40.0 32.8 24.1 16.8 71.2 60.3 5.2 4.3

Tata Global Neutral 133 - 8,219 7,207 7,927 9.7 10.0 6.6 7.9 20.0 16.9 2.0 2.0 8.6 9.5 1.0 0.9

IT

HCL Tech Neutral 558 - 38,689 24,400 27,049 18.6 17.5 41.1 45.0 13.6 12.4 3.1 2.6 22.7 21.1 1.5 1.3

Hexaware Accumulate 121 133 3,577 1,947 2,161 22.0 21.4 11.4 12.1 10.6 10.0 2.7 2.3 26.4 24.0 1.6 1.3

Infosys Accumulate 2,407 2,530 138,220 39,151 41,743 31.6 31.9 161.9 174.5 14.9 13.8 3.5 3.1 23.8 22.1 2.9 2.6Infotech Enterprises Neutral 179 - 1,995 1,889 2,065 18.0 17.5 18.0 19.7 9.9 9.1 1.4 1.3 14.5 13.7 0.7 0.6

KPIT Cummins Neutral 135 - 2,415 2,149 2,331 15.6 14.8 10.7 11.2 12.6 12.0 2.6 2.2 20.6 17.8 1.1 1.0

Mahindra Satyam Neutral 100 - 11,733 7,574 8,062 19.6 18.4 9.5 9.7 10.5 10.3 1.7 1.5 16.1 14.1 1.1 1.0

Mindtree Accumulate 650 708 2,648 2,341 2,513 18.6 17.1 66.5 70.8 9.8 9.2 2.2 1.8 22.3 19.3 1.0 0.8

Mphasis Neutral 388 - 8,144 5,704 6,009 18.6 17.7 36.0 37.1 10.8 10.5 1.5 1.3 14.0 12.6 1.0 0.8

NIIT Buy 35 40 572 1,162 1,304 14.8 15.1 7.1 8.8 4.9 3.9 0.8 0.7 16.7 18.4 0.3 0.2

Persistent Neutral 388 - 1,550 1,193 1,278 25.6 24.3 42.6 44.3 9.1 8.8 1.6 1.4 17.2 15.5 0.9 0.8

TCS Neutral 1,298 - 254,126 61,046 67,507 29.3 29.1 67.3 72.4 19.3 17.9 6.2 5.1 31.9 28.3 4.0 3.5

Tech Mahindra Neutral 869 - 11,090 6,148 6,434 18.4 17.6 91.8 97.6 9.5 8.9 2.2 1.8 23.4 20.2 1.8 1.6

Wipro Buy 355 420 87,472 43,492 48,332 19.4 19.3 25.1 28.0 14.2 12.7 2.6 2.3 18.6 18.0 1.7 1.4

Media

D B Corp Buy 187 236 3,425 1,597 1,785 22.9 24.2 11.1 13.9 16.8 13.4 3.2 2.8 20.2 22.1 2.1 1.8

HT Media Buy 88 113 2,068 2,111 2,263 15.2 15.2 7.3 8.1 12.0 10.8 1.3 1.2 11.2 11.2 0.5 0.4

Jagran Prakashan Buy 92 112 2,911 1,506 1,687 22.5 23.2 6.2 7.0 14.8 13.1 3.6 3.2 25.0 25.7 2.1 1.9

PVR Neutral 182 - 472 625 732 17.4 17.1 13.3 15.6 13.7 11.6 1.5 1.3 13.2 13.8 1.2 1.0

Sun TV Network Neutral 302 - 11,899 1,981 2,239 77.0 76.7 18.6 21.3 16.3 14.2 4.1 3.6 27.1 27.5 5.5 4.7Metals & Mining

Bhushan Steel Neutral 471 - 9,995 11,979 14,584 31.6 31.0 49.2 61.4 9.6 7.7 1.3 1.1 14.1 15.2 2.8 2.4

Coal India Accumulate 352 385 222,368 69,808 75,550 27.4 27.4 26.0 28.3 13.5 12.5 3.9 3.2 32.5 28.1 2.2 1.9

Electrosteel Castings Buy 19 22 657 1,984 2,074 11.2 12.6 2.0 2.7 9.3 7.0 0.4 0.1 4.2 5.5 0.5 0.5

Hind. Zinc Accumulate 132 144 55,964 12,446 13,538 52.3 52.9 14.3 15.5 9.3 8.5 1.8 1.5 20.5 18.9 2.6 2.0

Hindalco Neutral 112 - 21,501 83,212 91,057 9.0 9.9 13.7 18.1 8.2 6.2 0.6 0.6 7.9 9.6 0.5 0.5

JSW Steel Neutral 733 - 16,361 38,740 41,459 17.3 17.0 79.9 89.4 9.2 8.2 0.9 0.8 10.4 10.6 0.9 0.8

MOIL Accumulate 252 271 4,228 918 993 50.7 50.9 24.5 26.1 10.3 9.7 1.6 1.4 16.0 15.5 2.3 2.0

Monnet Ispat Buy 296 447 1,903 3,115 3,748 22.1 25.1 59.1 66.8 5.0 4.4 0.7 0.6 15.6 15.3 1.4 1.0


August 22, 2012

Market Outlook

Stock Watch


11/14



Metals & Mining

Nalco Reduce 53 48 13,543 7,401 7,841 16.7 19.2 3.4 4.1 15.4 12.8 1.1 1.1 7.4 8.4 1.4 1.3

NMDC Accumulate 181 200 71,821 12,093 13,338 78.4 79.0 19.5 21.6 9.3 8.4 2.3 1.9 27.6 25.0 4.0 3.4

SAIL Neutral 85 - 35,027 47,252 60,351 14.2 14.8 9.6 11.7 8.9 7.2 0.8 0.7 9.4 10.6 1.2 1.0

Sesa Goa Neutral 194 - 16,830 7,704 8,034 33.6 34.6 42.0 43.1 4.6 4.5 0.9 0.8 22.3 19.2 0.4 0.1

Sterlite Inds Neutral 114 - 38,210 41,680 45,382 24.2 23.2 16.3 16.9 7.0 6.7 0.8 0.7 11.3 10.7 0.6 0.4

Tata Steel Buy 392 499 38,091 143,088 148,011 10.9 12.1 53.9 66.0 7.3 5.9 0.9 0.8 12.2 13.4 0.6 0.6

Sarda Accumulate 130 148 467 1,251 1,321 22.7 23.4 33.0 37.1 3.9 3.5 0.6 0.5 15.1 14.8 0.7 0.7Prakash Industries Buy 60 73 803 2,694 2,906 14.6 16.6 17.9 22.6 3.3 2.6 0.4 0.3 11.4 12.8 0.5 0.4

Godawari Power andIspat

Buy 124 161 392 2,341 2,425 15.6 17.3 33.8 43.8 3.7 2.8 0.5 0.4 13.2 14.4 0.5 0.5

Oil & Gas

Cairn India Accumulate 332 380 63,247 16,605 17,258 75.4 71.7 57.0 54.9 5.8 6.0 1.1 0.9 20.2 16.3 2.8 2.2

GAIL Neutral 370 - 46,915 50,176 55,815 15.5 15.8 35.4 36.5 10.5 10.1 1.8 1.6 18.9 17.0 0.1 -

ONGC Accumulate 287 312 245,371 147,139 154,821 33.9 33.7 30.7 32.3 9.4 8.9 1.6 1.5 18.3 17.2 1.4 1.3

Reliance Industries Neutral 814 - 266,663 362,700 380,031 7.9 8.0 61.5 64.3 13.3 12.7 1.3 1.2 10.3 9.9 0.7 0.7

Gujarat Gas Neutral 302 - 3,879 2,472 3,267 16.1 11.5 21.2 19.2 14.2 15.8 4.9 4.2 33.4 28.7 1.5 1.1

Indraprastha Gas Neutral 256 - 3,587 3,040 3,135 24.3 26.7 24.8 27.9 10.3 9.2 2.4 2.0 25.5 23.6 1.2 1.0

Petronet LNG Buy 150 176 11,250 22,696 29,145 8.1 6.6 14.1 14.2 10.6 10.6 3.2 2.6 34.1 26.9 0.6 0.4

Gujarat State PetronetLtd.

Neutral 73 - 4,096 1,041 939 91.8 91.9 8.5 7.4 8.6 9.8 1.5 1.3 18.1 14.0 4.8 5.3

Pharmaceuticals

Alembic Pharma Buy 65 91 1,226 1,624 1,855 14.2 15.6 6.6 9.1 9.9 7.2 2.4 1.9 27.9 29.2 0.9 0.8

Aurobindo Pharma Buy 105 156 3,050 5,243 5,767 14.6 14.6 11.8 12.6 8.9 8.3 0.9 0.4 17.9 16.4 1.1 0.9

Aventis* Neutral 2,202 - 5,070 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 2.8Cadila Healthcare Accumulate 862 953 17,647 6,148 7,386 18.6 19.6 36.0 46.1 23.9 18.7 5.6 4.5 25.8 26.8 3.1 2.5

Cipla Accumulate 360 399 28,897 8,031 9,130 23.4 22.4 18.4 20.0 19.6 18.0 3.2 2.8 17.8 16.6 3.4 2.9

Dr Reddy's Neutral 1,659 - 28,161 10,696 11,662 20.7 21.0 83.7 92.9 19.8 17.9 4.1 3.4 22.4 21.0 2.9 2.6

Dishman Pharma Neutral 93 - 749 1,280 1,536 17.8 17.8 9.2 11.3 10.1 8.2 0.8 0.7 7.7 8.5 1.2 1.0

GSK Pharma* Neutral 2,086 - 17,670 2,651 2,993 31.7 31.2 76.0 82.4 27.5 25.3 7.9 7.1 20.1 26.3 5.9 5.1

Indoco Remedies Buy 60 92 553 685 837 15.2 15.2 7.4 8.9 8.1 6.7 1.2 1.1 16.4 17.0 1.0 0.8

Ipca labs Buy 399 475 5,032 2,850 3,474 20.7 20.7 29.2 36.6 13.7 10.9 3.2 2.6 26.1 26.1 1.9 1.6

Lupin Accumulate 572 647 25,543 8,426 10,082 19.7 20.0 27.4 32.4 20.9 17.6 5.1 4.1 26.0 24.7 3.1 2.5

Orchid Chemicals Buy 109 178 770 2,117 2,434 17.7 17.7 16.7 22.2 6.5 4.9 0.6 0.5 9.5 11.5 1.0 0.8


August 22, 2012

Market Outlook

Stock Watch


12/14



Pharmaceuticals

Ranbaxy* Neutral 513 - 21,677 12,046 11,980 18.0 15.8 35.7 29.8 14.4 17.2 5.6 4.5 39.1 28.9 1.8 1.8

Sun Pharma Neutral 667 - 68,946 9,752 12,134 41.6 41.6 26.0 28.2 25.7 23.7 4.8 4.1 20.3 18.8 6.3 4.9

Power

CESC Accumulate 317 342 3,954 5,218 5,644 24.2 23.8 44.6 47.6 7.1 6.7 0.7 0.7 11.0 10.6 1.1 1.1

GIPCL Buy 67 77 1,007 1,557 1,573 29.3 28.7 10.8 11.0 6.2 6.1 0.6 0.6 10.8 10.2 1.1 0.9

NTPC Neutral 174 - 143,306 74,111 85,789 23.2 23.6 12.4 14.0 14.1 12.4 1.8 1.6 13.0 13.5 2.7 2.4

Real EstateAnant Raj Buy 47 78 1,387 657 875 52.0 56.1 8.4 12.7 5.6 3.7 0.3 0.3 6.3 8.9 3.4 2.5

DLF Neutral 216 - 36,686 9,878 12,033 44.7 46.1 9.6 13.4 22.6 16.1 1.4 1.4 6.4 8.7 6.2 5.1

HDIL Buy 83 115 3,461 2,441 3,344 55.1 48.2 22.7 26.6 3.6 3.1 0.3 0.3 8.8 9.4 3.3 2.5

MLIFE Accumulate 356 396 1,454 813 901 26.2 26.6 32.0 37.1 11.1 9.6 1.2 1.1 10.4 11.0 2.2 1.9

Telecom

Bharti Airtel Neutral 259 - 98,223 79,542 87,535 30.9 32.2 10.3 15.0 25.1 17.2 1.8 1.7 7.2 9.6 1.9 1.6

Idea Cellular Neutral 76 - 25,089 22,988 25,333 26.4 26.9 3.5 4.9 21.9 15.5 1.8 1.6 8.1 10.2 1.5 1.3

Rcom Neutral 57 - 11,755 21,553 22,494 31.0 30.7 3.5 4.5 16.4 12.8 0.3 0.3 1.9 2.4 2.1 1.8

zOthers

Abbott India Neutral 1,584 - 3,366 1,602 1,833 10.4 11.8 54.7 71.7 29.0 22.1 5.5 4.7 20.0 22.7 1.9 1.6

Bajaj Electricals Buy 178 234 1,770 3,569 4,172 8.1 8.8 16.3 21.3 10.9 8.3 2.2 1.9 21.7 24.6 0.5 0.4

Cera Sanitaryware Neutral 364 - 460 396 470 16.7 16.5 28.0 33.2 13.0 11.0 2.7 2.2 23.8 23.1 1.3 1.1

Cravatex Buy 451 785 117 302 364 5.7 6.0 49.0 71.0 9.2 6.4 2.7 2.0 29.8 30.7 0.5 0.4

CRISIL Neutral 919 - 6,446 982 1,136 34.3 34.3 34.3 40.0 26.8 23.0 12.1 9.7 50.9 46.9 6.1 5.2

Finolex Cables Buy 39 61 591 2,334 2,687 8.8 9.3 7.6 10.2 5.1 3.8 0.7 0.6 13.7 16.1 0.2 0.1

Force Motors Buy 437 591 569 2,214 2,765 4.5 5.4 39.5 73.9 11.1 5.9 0.5 0.5 4.4 7.6 0.1 0.1Goodyear India Accumulate 347 370 799 1,543 1,646 8.1 9.2 32.3 39.4 10.7 8.8 2.2 1.8 21.7 22.4 0.3 0.3

Graphite India Buy 82 113 1,598 2,158 2,406 18.1 18.9 12.4 14.0 6.6 5.8 0.9 0.8 14.0 14.3 0.9 0.7

Greenply Industries Buy 190 309 459 1,925 2,235 10.6 10.9 29.6 44.1 6.4 4.3 1.1 0.9 16.8 21.0 0.5 0.4

HEG Accumulate 204 229 816 1,586 1,685 17.9 18.1 16.1 25.7 12.7 7.9 1.0 0.9 7.5 11.6 1.2 1.1

Hitachi Accumulate 115 130 263 868 977 3.9 6.6 2.7 10.9 41.8 10.6 1.5 1.4 3.7 13.6 0.4 0.3

Honeywell Automation Buy 2,449 2,842 2,164 1,847 2,162 4.3 7.3 61.0 120.0 40.1 20.4 3.2 2.7 9.3 16.3 1.1 0.9

INEOS ABS India Accumulate 670 744 1,179 1,056 1,081 8.1 10.6 33.8 46.5 19.8 14.4 2.7 2.3 14.7 17.5 1.1 1.0

ITD Cementation Accumulate 225 241 259 1,451 1,669 12.3 12.4 32.4 41.5 7.0 5.4 0.6 0.6 9.4 10.9 0.6 0.6

Jyothy Laboratories Accumulate 134 145 2,166 1,248 1,468 9.8 10.4 5.9 7.2 22.7 18.7 3.3 3.0 15.0 16.6 2.1 1.7

MCX Buy 1,166 1,598 5,946 610 702 65.5 67.0 67.9 79.9 17.2 14.6 5.0 4.2 29.1 28.9 6.8 5.4


August 22, 2012

Market Outlook

Stock Watch


13/14



zOthers

MRF Buy 11,075 12,884 4,697 11,804 12,727 10.4 10.5 1,289.9 1,431.3 8.6 7.7 1.7 1.4 21.3 19.4 0.5 0.5

Page Industries Neutral 3,183 - 3,551 887 1,108 18.3 18.6 95.0 120.9 33.5 26.3 17.5 14.2 57.4 59.5 4.1 3.2

Relaxo Footwears Buy 587 684 704 1,019 1,208 12.3 13.0 51.0 68.4 11.5 8.6 3.0 2.3 30.3 30.2 0.9 0.7

Sintex Industries Buy 61 79 1,676 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 301 392 282 1,042 1,173 12.4 12.5 66.3 78.5 4.6 3.8 0.9 0.7 21.1 20.8 0.5 0.5

S. Kumars Nationwide Buy 24 45 712 7,279 8,290 21.0 21.0 15.0 17.6 1.6 1.4 0.2 0.2 13.7 13.9 0.7 0.6

SpiceJet Buy 35 43 1,695 5,720 6,599 5.3 6.8 3.6 5.4 9.7 6.5 14.1 4.5 - - 0.4 0.4TAJ GVK Buy 65 108 408 300 319 35.8 36.2 7.9 9.1 8.2 7.2 1.1 1.0 13.9 14.4 1.7 1.4

Tata Sponge Iron Buy 324 424 499 787 837 16.2 17.5 58.5 66.9 5.5 4.8 0.8 0.7 14.9 15.1 0.3 0.2

TVS Srichakra Accumulate 317 335 243 1,476 1,643 7.1 8.2 24.7 42.8 12.8 7.4 1.6 1.3 16.6 24.8 0.4 0.3

United Spirits Neutral 983 - 12,851 10,289 11,421 13.5 14.3 31.0 42.9 31.7 22.9 2.5 2.2 8.1 10.3 1.9 1.7

Vesuvius India Neutral 356 - 722 560 611 16.1 17.0 24.7 28.8 14.4 12.4 2.2 1.9 15.8 16.2 1.2 1.1

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 21, 2012


August 22, 2012

Market Outlook

Stock Watch


14/14

August 22, 2012Market Outlook

market outlook 220812

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