Market Outlook

August 8, 2012

Dealers Diary
Indian markets are expected to open in the green, tracing positive opening trades
in the SGX Nifty and the major Asian bourses. Most of the Asian bourses have
edged higher in the early trades as speculation that central banks will take steps to
spur growth and better than forecast U.S. corporate earnings have boosted the
outlook for the economy.
The US markets moved mostly higher during the trading session on Tuesday and
ended the day positively. The continued strength on Wall Street was partly due to
optimism that the ECB will unveil additional measures to address the ongoing debt
crisis following the release of disappointing economic data from the region. Data
from Europe showed that the Italian economy shrank in the second quarter,
marking the fourth consecutive quarter of contraction. A separate report showed a
steeper than expected drop in German factory orders in June. The European
markets largely closed in the positive territory on Tuesday, despite release of
disappointing economic data.
Meanwhile, the Indian markets rallied for a second straight day on hopes of reform
after finance minister unveiled a roadmap to revive economic growth. He promised
fine-tuning of policies and corrective measures on proposals such as the GAAR and
retrospective amendments, helping boost investor sentiment.

Domestic Indices

1.1
1.0

54.2

5,337

MID CAP

0.4

21.3

6,126

SMALL CAP

0.4

23.6

6,621

(0.1)

(7.0)

7,310

BSE PSU

0.6

42.6

7,133

BANKEX

1.2

143.5 12,142

AUTO

1.7

156.1

METAL

0.6

OIL & GAS

0.1

6.5

8,358

BSE IT

2.0

104.3

5,450

(Pts)

(Close)

Global Indices

51.1 13,169

NASDAQ

0.9

26.0

3,016

FTSE

0.6

32.5

5,841

Nikkei

0.9

77.0

8,803

0.4

73.8 20,073

S2

S1

PIVOT

R1

R2

SENSEX

17,330

17,466

17,554

17,690

17,777

NIFTY

5,254

5,296

5,323

5,364

5,391

HDB

` cr

Purch

Sales

Net

MTD

YTD

FII

1,736

1,167

570

1,549

54,830

441

347

95

51

(8,028)

FII Derivatives (August 7, 2012)

` cr

Purch

Sales

Net

Open Interest

Index Futures

2,195

1,518

677

15,169

Stock Futures

1,578

1,035

542

24,484

Gainers / Losers
Gainers

Losers

Price (`)

chg (%)

Bajaj Finserv

805

4.5

Tata Motors

239

4.4

Company

Price (`)

chg (%)

IRB Infra

116

(7.0)

Castrol India

602

(3.8)

212

(3.4)

33

(2.6)

319

(2.5)

Thermax

509

4.1

Indiabulls Fin

Bharat Forge

312

4.0

Shree Renuka Sug

Zee Entert

168

3.9

HPCL

www.angelbroking.com

(0.1)

(4.1)

3,068

0.1

2.7

2,158

Chg (%)

(Pts)

(Close)

INFY

1.8

0.7

$41.4

WIT

0.8

0.1

$8.0

IBN

1.5

0.5

$35.5

(1.9)

(0.7)

$35.2

Shanghai Com
Indian ADRs

Advances / Declines

BSE

NSE

Advances

1,503

784

Declines

1,316

642

125

86

Unchanged
Volumes (` cr)

Net Inflows (August 6, 2012)

Company

60.1 10,361

0.4

Indices

MFs

Chg (%)

9,329

Dow Jones

Straits Times

Refer detailed news analysis on the following page

188.8 17,602

BSE HC

Hang Seng

Spectrum auction may get pushed to November

RILs Management Committee approves commerciality of three gas finds
Coal India Board approves higher penalty for new FSAs
1QFY2013 Result Reviews- J&K Bank, MOIL, Aurobindo Pharma, Punj Lloyd
1QFY2013 Result Previews- M&M, ABB India

(Close)

Nifty

The trend deciding level for the day is 17,554 / 5,323 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 17,690 17,777 / 5,364 5,391 levels. However, if NIFTY trades below
17,554 / 5,323 levels for the first half-an-hour of trade then it may correct up to
17,466 17,330 / 5,296 5,254 levels.

(Pts)

BSE Sensex

Markets Today

News Analysis

Chg (%)

BSE

2,179

NSE

9,862

Market Outlook
August 8, 2012

Spectrum auction may get pushed to November

As per media reports, the telecom department (DoT) will ask the Supreme Court to
extend the deadline for completing the upcoming auction of airwaves by five
months to January 30, 2013. DoT will tell the apex court next week that the
electronic bidding for airwaves will begin on November 12, 2013 as it submits a
revised timeline. This is the second time the government will seek an extension of
the deadline for holding and completing auctions. The EGoM on telecom, at its
meeting yesterday, decided to approach the Supreme Court to seek an extension
of the deadline the court had set. The apex court had directed the Government to
complete the auction by August 31 and cancel licenses given out in 2010 by
September 7, 2012. According to the revised timeline prepared by the Department
of Telecom, the spectrum sale will start on November 12, 2012. The DoT will tell
the Supreme Court that the delay is because the auctioneer will need time to set up
the online system and finalize the auction guidelines. The extension seeking is on
the expected lines. We maintain Neutral rating on the overall telecom sector.

RILs Management Committee approves commerciality of three

gas finds
Media reports suggest that Reliance Industries Ltds (RIL) Management Committee
has given conditional acceptance to the budget for three years beginning FY2011
for KG-D6 block. Also, the Committee has conditionally approved commercial
feasibility for three finds in the block (D-29, D-30, and D-31). Media reports also
suggest that RIL has received approval to spend US$1bn to raise KG D8
production during FY2013. We await further approvals from the Oil Ministry to
have more clarity on this matter. Meanwhile, we maintain our Neutral view on the
stock.

Coal India Board approves higher penalty for new FSAs

Media reports suggest that Coal India Ltds (CIL) Board has approved higher
penalty rates for Fuel Supply Agreements (FSAs) to be signed with power producers
which have commissioned units after March 30, 2009. The penalty will now be
levied at 1.5% for a shortfall below 80% but above 65% (compared to earlier
penalty level of only 0.01%). For shortfall below 65%, the penalty will be in the
range of 5-40% depending on the quantum of shortfall. However, there is no
clarity on price pooling and quantum of imports. We do not foresee a material
impact on CILs financials on account of this marginal increase in penalty. Hence,
we maintain our Neutral view on the stock.

www.angelbroking.com

Market Outlook
August 8, 2012

Result Reviews
J&K Bank (CMP: `948 / TP: - / Upside: -)
J&K Bank registered a strong performance on the operating front for 1QFY2013.
The reported net profit grew by 35.0% yoy to `246cr. The growth in net interest
income remained healthy at 22.5% yoy to `536cr, while the operating profits grew
by a strong 31.2% yoy to `415cr. The banks asset quality remained stable
sequentially, with a marginal increase of 6bp in gross NPA ratio to 1.6% and 1bp
decline in the net NPA ratio to 0.14%. The banks PCR which is highest in the
industry, improved on a sequential basis by 33bp to 94.1%. At the current market
price, the stock is trading at a relatively expensive valuation of 0.8x FY2014E ABV.
We maintain our Neutral recommendation on the stock.
Y/E

Op. Inc

NIM

PAT

EPS

ABV

ROA

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2013E

2,525

3.5

853

175.8

978.7

FY2014E

2,858

3.5

888

183.1

1,118.8

March

ROE P/E
(x)

P/ABV

(x)

(x)

1.3

19.3 5.3

1.0

1.2

17.5 5.1

0.8

MOIL Ltd (CMP: `267 / TP: `296 /Upside: 11%)

MOILs 1QFY2013 results were above our expectations. Net sales increased by
15.5% to `243cr (above our estimate of `199cr) mainly on account of higher
volumes in our view. However, EBITDA decreased by 19.3% yoy to `102cr and
EBITDA margin dipped by 1814bp yoy to 42.2% mainly on account of decline in
manganese ore prices in our view. Other income increased by 20.4% to `52cr
mainly on account of higher cash balance. Consequently, net profit decreased by
only 8.7% yoy to `99cr, above our expectation of `93cr. We maintain our
Accumulate rating on the stock with a target price of `296.
Y/E

Sales

OPM

PAT

EPS

ROE

P/E

P/BV

EV/EBITDA

EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

(x)

(x)

(x)

FY2013E

884

50.2

399 23.7

15.6

11.2

1.7

5.3

2.7

FY2014E

958

50.5

424 25.2

15.1

10.6

1.5

4.6

2.3

Aurobindo Pharma (CMP: `115/ TP: `156/ Upside: 36%)

Aurobindo Pharmaceuticals, reported results below expectations. The company
posted sales of `1197.4cr, registering a y-o-y growth of 12.4% yoy, which is below
our expectation of `1,258cr. On the operating front, the gross margins came in at
45.9%, below our expectations of 46.8%. This, along with a rise in other
expenditure, lead to a significant drop in OPM which came in at 10.3% (15.2%).
Further, this resulted in the net profit coming in much lower than our expectations
at `22cr vs our expectations of `96cr. We maintain our Buy recommendation on
the stock with a price target of `156.

www.angelbroking.com

Market Outlook
August 8, 2012

Y/E

Sales

OPM

PAT

EPS

ROE

P/E

P/BV

EV/EBITDA

EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

(x)

(x)

(x)

FY2013E

5,243

14.6

342 11.8

11.4

9.8

1.0

7.2

1.0

FY2014E

5,767

14.6

367 12.6

10.9

9.1

0.9

6.2

0.9

Punj Lloyd (CMP: `54 / TP: - / Upside: -)

For 1QFY2013, Punj posted mixed set of numbers with decent performance on
revenue and EBITDAM front but loss at earnings level owing to high interest and
depreciation cost. The company posted 22.6% yoy top-line growth to `2,776cr.
The companys EBITDA margin for the quarter stood at 10.4% an improvement of
160bp and 200bp on yoy and qoq basis respectively. Interest came in at 183cr a
jump of 39% on yoy basis but fall of 2% on sequential basis. Depreciation stood at
`94cr an increase of 52%/34% on yoy/qoq basis. Despite posting good numbers
on the revenue and EBITDAM front Punj posted a loss of `13cr vs. a loss of `12cr
in 1QFY2012 on the earnings front owing to higher interest and depreciation cost.
We maintain our Neutral view on the stock.
Y/E

Sales

OPM

PAT

EPS

ROE

P/E

P/BV

EV/EBITDA

EV/Sales

March

(` cr)

(`)

(%)

(x)

(x)

(x)

(x)

(` cr)

(%)

FY2013E

11,592

8.4

59

1.8

2.0

30.3

0.6

6.6

0.6

FY2014E

12,993

8.4

107

3.2

3.6

16.7

0.6

6.3

0.5

Result Previews
Mahindra and Mahindra (CMP: `696 / TP: `824 / Upside: 18%)
Mahindra and Mahindra (MM) will be announcing its 1QFY2013 results today. We
expect the companys top-line to grow by a strong 34.1% yoy to `8,950cr backed
by 15.4% yoy growth in total volumes and 13.7% yoy growth in net average
realization. On the operating front, EBITDA margin is expected to witness a decline
of 200bp yoy to 11.3% on account of increase in purchases from manufacturing
subsidiary MVML and lower share of tractors in the total volume-mix. As a result,
the bottom-line is expected to report a modest 6.3% yoy growth to `643cr. At
`696, the stock is trading at 13.1x FY2014E earnings. Currently, we have a Buy
rating on the stock with an SOTP based target price of `824.

www.angelbroking.com

Y/E

Sales

OPM

PAT

EPS

ROE

P/E

P/BV

EV/EBITDA

EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

(x)

(x)

(x)

FY2013E

35,881

10.0

2,870 47.5

21.3

14.6

2.9

7.7

0.9

FY2014E

70,746

10.0

3,328 53.2

20.5

13.1

2.5

6.4

0.8

Market Outlook
August 8, 2012

ABB India (CMP: `791, TP: `498, Downside: 37.0%)

For 2QCY2012, we expect ABB India (ABB) to post decent top-line growth of
10.0% yoy to `1,884cr, driven by the companys balanced performance across all
segments. EBITDA margin is likely witness marginal improvement of 30bp yoy to
5.3%. Aided by modest revenue growth and margin expansion; ABBs bottom line
is expected to jump by 22.3% to `47.3cr. We maintain our Sell recommendation
on the stock with a target price of `498.
Y/E
March

Sales

OPM

PAT

EPS

ROE

P/E

P/BV

EV/EBITDA

EV/Sales

(` cr)

(%)

(` cr)

(`)

(%)

(x)

(x)

(x)

(x)

FY2013E

8,760

386.3

18

14.4

43.4

5.8

24.8

1.9

FY2014E

10,023

7.5

440 20.7

14.6

38.1

5.2

21.9

1.6

Quarterly Bloomberg Brokers Consensus Estimate

ABB - (08/08/2012)
Particulars (` cr)
Net sales

2QCY12E

2QCY11

y-o-y (%)

1QCY12

q-o-q (%)

1,885

1,693

11

1,773

EBITDA

110

83

32

98

13

EBITDA margin (%)

5.9

4.9

Net profit

63

39

5.5
64

48

33

Bharti Airtel Ltd - Consolidated (08/08/2012)

Particulars (` cr)
Net sales
EBITDA
EBITDA margin (%)
Net profit

1QFY13E

1QFY12

y-o-y (%)

4QFY12

q-o-q (%)

19,514

16,975

15

18,729

6,540

5,706

15

6,231

33.5

33.6

1,245

1,205

33.3
3

1,008

24

Mahindra & Mahindra Ltd - (08/08/2012)

Particulars (` cr)

1QFY13E

1QFY12

y-o-y (%)

4QFY12

q-o-q (%)

8,926

6,673

34

9,241

(3)

EBITDA

964

897

1,268

(24)

EBITDA margin (%)

10.8

13.4

Net profit

615

605

Net sales

13.7
2

874

(30)

Tata Power Ltd - Consolidated (08/08/2012)

Particulars (` cr)

www.angelbroking.com

1QFY13E

1QFY12

y-o-y (%)

4QFY12

q-o-q (%)

Net sales

6,926

5,805

19

7,170

(3)

EBITDA

1,460

1,542

1,412

EBITDA margin (%)

22.3

24.3

Net profit

423

501

20.4
(16)

(572)

(174)

Market Outlook
August 8, 2012

Power Finance Corporation Ltd (08/08/2012)

Particulars (` cr)

1QFY13E

1QFY12

y-o-y (%)

4QFY12

q-o-q (%)

858

686

25

818

Net profit

GMR Infra Ltd - Consolidated (09/08/2012)

Particulars (` cr)

1QFY13E

1QFY12

y-o-y (%)

4QFY12

q-o-q (%)

2,055

1,864

10

2,099

(2)

EBITDA

557

498

12

145

284

EBITDA margin (%)

27.1

26.7

(126)

(135)

Net sales

Net profit

6.9
(7)

(586)

(78)

HPCL Ltd - (09/08/2012)

Particulars (` cr)
Net sales
EBITDA
EBITDA margin (%)
Net profit

1QFY13E

1QFY12

y-o-y (%)

4QFY12

q-o-q (%)

48,495

40,798

19

54,657

(11)

(209)

5,844

(52)

2,806

(2,568)

5.8

-6.3

(3,618)

(3,080)

10.7
17

4,631

(178)

Indian Oil Corp Ltd - (09/08/2012)

Particulars (` cr)
Net sales
EBITDA
EBITDA margin (%)
Net profit

1QFY13E

1QFY12

y-o-y (%)

4QFY12

q-o-q (%)

117,100

92,100

27

127,736

(8)

(5,221)

(2,362)

121

15,070

(135)

-4.5

-2.6

(7,374)

(3,719)

11.8
98

12,670

(158)

y-o-y (%)

1QCY12

q-o-q (%)

Ranbaxy - Consolidated (09/08/2012)

Particulars (` cr)
Net sales

2QCY12E

2QCY11

2,900

2,054

41

3,695

(22)

EBITDA

522

115

354

1,015

(49)

EBITDA margin (%)

18.0

5.6

Net profit

216

246

27.5
(12)

1,248

(83)

Tata Motors - Consolidated (09/08/2012)

Particulars (` cr)

1QFY13E

1QFY12

y-o-y (%)

4QFY12

q-o-q (%)

42,707

33,382

28

50,609

(16)

5,518

4,226

31

6,744

(18)

12.9

12.7

2,726

1,996

37

6,258

(56)

1QFY13E

1QFY12

y-o-y (%)

4QFY12

q-o-q (%)

Net sales

987

829

19

956

EBITDA

231

208

11

251

(8)

EBITDA margin (%)

23.4

25.1

Net profit

105

97

Net sales
EBITDA
EBITDA margin (%)
Net profit

13.3

Bharat Forge Ltd - (10/08/2012)

Particulars (` cr)

www.angelbroking.com

26.3
8

55

91

Market Outlook
August 8, 2012

BPCL Ltd - (10/08/2012)

Particulars (` cr)

1QFY13E

1QFY12

y-o-y (%)

4QFY12

q-o-q (%)

57,166

48,312

18

61,456

(7)

2,174

(262)

4,126

(185)

Net sales
EBITDA

(3,520)

EBITDA margin (%)

4.5

-6.2

Net profit

6.7

935

(537)

3,140

(230)

1QFY13E

1QFY12

y-o-y (%)

4QFY12

q-o-q (%)

3,582

1,584

126

4,050

(12)

(4,082)

State Bank of India - (10/08/2012)

Particulars (` cr)
Net profit

Siemens India Ltd (10/08/2012)

Particulars (` cr)

3Q SY12E

3Q SY11

Net sales

y-o-y (%)

2Q SY12

q-o-q (%)

3,024

2,779

3,760

(20)

EBITDA

291

250

16

494

(41)

EBITDA margin (%)

9.6

9.0

Net profit

178

155

13.1
15

304

(41)

Sun Pharmaceutical - Consolidated (10/08/2012)

Particulars (` cr)

1QFY13E

1QFY12

y-o-y (%)

4QFY12

q-o-q (%)

2,224

1,636

36

2,330

(5)

EBITDA

867

547

59

1,175

(26)

EBITDA margin (%)

39.0

33.4

Net profit

648

565

Net sales

50.4
15

904

Economic and Political News

Indian banks can weather impact of drought: RBI

Provisions in land acquisition bill to affect projects: CII
MSME Ministry says not consulted on single brand IKEA FDI move
RBI relaxes KCC repayment norms to help farmers fight drought

Corporate News

Jet Airways to hive off flyer plan; eyes 25% ancillary revenue by FY15
DLFs big-ticket asset sale to garner ` 5,000cr
Infosys launches solution for unified, seamless cloud management

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

www.angelbroking.com

(28)

Market Outlook
August 08, 2012

Result Calendar
Date

Company

August 08, 2012

August 10, 2012

Bharti Airtel, M&M, Tata Power Co., Power Fin.Corpn., ABB, Goodyear, HEG, TVS Srichakra
IOC, Tata Motors, Adani Enterp., Ranbaxy, HPCL, GMR Infra., Tech Mahindra, Motherson Sumi, GSPL, ITNL, Apollo
Tyres, Anant Raj, Nagarjuna Const., Alembic Pharma, Hitachi, ITD Cementation
St Bk of India, Sun Pharma, Siemens, BPCL, Bharat Forge, Consolidated Co

August 11, 2012

ONGC, Rcom, Reliance Capital, Madhucon Proj, Godawari Ispat

August 09, 2012

August 12, 2012

August 13, 2012
August 14, 2012

Coal India, NMDC, Tata Steel, Bosch India, GSK Pharma, Suzlon Energy, India Cements
Hindalco, Reliance Power, IDFC, Nalco, Essar Oil, Reliance Infra., Unitech, HDIL, Monnet Ispat, Amara Raja Batteries,
Orchid Chemicals, Simplex Infra, Electrosteel Castings, Finolex Cables

Source: Bloomberg, Angel Research

Global economic events release calendar

Date

August 09, 2012

Country

Event Description

Unit

Period

Bloomberg Data
Last Reported

Estimated

US

Initial Jobless claims

Thousands

Aug 4

365.00

370.00

China

Industrial Production (YoY)

% Change

Jul

9.50

9.70

China

Consumer Price Index (YoY)

% Change

Jul

2.20

1.70

India

Industrial Production YoY

% Change

Jun

2.40

0.70

August 10, 2012

China

Exports YoY%

% Change

Jul

11.30

8.00

August 14, 2012

UK

% Change

Jul

2.40

--

% Change

Jul

7.25

7.30

US

CPI (YoY)
Monthly Wholesale Prices
YoY%
Producer Price Index (mom)

% Change

Jul

0.10

0.20

Euro Zone

Euro-Zone GDP s.a. (QoQ)

% Change

2Q A

--

--

Germany

GDP nsa (YoY)

% Change

2Q P

1.70

--

UK

Jobless claims change

% Change

Jul

6.10

--

US

Industrial Production

Jul

0.43

0.50

US

Consumer price index (mom)

% Change

Jul

--

0.20

US

Housing Starts

Thousands

Jul

760.00

760.00

US

Building permits

Thousands

Jul

760.00

770.00

Euro Zone

Euro-Zone CPI (YoY)

Jul

2.40

--

US

Existing home sales

Millions

Jul

4.37

--

India

August 15, 2012

August 16, 2012

August 22, 2012

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Strategy
August 8, 2012

Macro watch
Exhibit 1: Quarterly GDP trends

(%)

8.0

6.7
5.9

5.3

3.7

4.0

4.3

3.4

2.7

2.5

Source: CSO, Angel Research

(6.0)

10.0

9.9

Dec-11

Nov-11

Mfg. PMI

60.0
9.8

(0.9)

Exhibit 4: Manufacturing and services PMI

(%)
9.4

(3.2)

(5.0)

Source: MOSPI, Angel Research

Exhibit 3: Monthly WPI inflation trends

12.0

Oct-11

Sep-11

Aug-11

(4.0)

Jul-11

4QFY12

3QFY12

2QFY12

1QFY12

4QFY11

3QFY11

2QFY11

1QFY11

4QFY10

3QFY10

2QFY10

(2.0)

1QFY10

3.0

4QFY09

4.0

2.4
1.0

2.0

5.0

7.7

8.0

Services PMI

58.0

9.5
6.9

7.4

7.7

7.5

7.6

7.3

56.0

Source: MOSPI, Angel Research

Jun-12

May-12

Apr-12

Mar-12

Feb-12

Jan-12

Dec-11

Nov-11

Sep-11

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

Exhibit 5: Exports and imports growth trends

Exports yoy growth

(%)

Jun-11

Jun-12

May-12

Apr-12

Mar-12

Feb-12

Jan-12

Dec-11

48.0
Nov-11

0.0

Oct-11

50.0
Sep-11

2.0

Aug-11

52.0

Jul-11

4.0

Oct-11

54.0

6.0

Aug-11

10.0

6.0

6.0

6.1

Jul-11

6.0

7.4

9.5

10.0

8.0

Jun-11

7.0

8.2

May-12

7.5

8.0

7.6

Apr-12

8.5

9.0

12.0

9.2

Mar-12

9.4

Feb-12

9.8

Jan-12

(%)

10.0

Exhibit 2: IIP trends

Exhibit 6: Key policy rates

Imports yoy growth

75.0

(%)
9.00

60.0

8.00

45.0

Repo rate

Reverse Repo rate

CRR

7.00

30.0

6.00

15.0

5.00

Source: Bloomberg, Angel Research

www.angelbroking.com

Source: RBI, Angel Research

Aug-12

Jul-12

Jun-12

May-12

Apr-12

Mar-12

Feb-12

Jan-12

Dec-11

Nov-11

Oct-11

Sep-11

4.00
Aug-11

Jun-12

Apr-12

Mar-12

Feb-12

Jan-12

May-12

(30.0)

Dec-11

Nov-11

Oct-11

Sep-11

Aug-11

(15.0)

Jul-11

0.0

Market Outlook
August 08, 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

126

2,451

1,466

1,686

14.8

14.8

7.0

8.1

18.0

15.6

3.8

3.3

22.6

22.5

1.7

1.5

United Phosphorus

Buy

122

170

5,603

8,421

9,263

16.5

16.5

15.0

17.0

8.1

7.2

1.2

1.0

15.6

15.5

0.8

0.7

Amara Raja Batteries

Accumulate

310

345

2,651

2,715

3,041

15.3

15.3

29.2

32.8

10.7

9.5

2.5

2.0

26.0

23.3

0.9

0.8

Apollo Tyres

Buy

81

100

4,060

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

6,106

14,920

16,850

9.0

9.3

2.2

2.8

10.5

8.4

1.9

1.7

13.3

15.6

0.5

0.4

Automotive Axle

Buy

358

430

541

993

1,140

11.6

11.5

36.9

43.0

9.7

8.3

1.9

1.6

21.2

21.3

0.6

0.5

Bajaj Auto

Neutral

1,668

48,272

21,285

23,927

18.2

18.3

108.5

121.3

15.4

13.8

6.4

5.1

46.1

41.3

1.8

1.6

Bharat Forge

Buy

312

372

7,266

7,173

7,998

16.3

16.5

22.3

26.6

14.0

11.8

2.7

2.3

21.0

21.0

1.1

0.9

Bosch India

Neutral

8,988

28,221

9,106

10,255

19.4

19.3

410.2

460.3

21.9

19.5

4.8

4.0

22.1

20.4

2.7

2.3

CEAT

Buy

102

164

350

4,989

5,634

8.7

8.5

32.7

41.1

3.1

2.5

0.5

0.4

15.8

16.9

0.3

0.2

Exide Industries

Accumulate

130

149

11,076

5,899

6,771

16.0

17.0

7.4

9.1

17.7

14.3

3.2

2.7

19.0

20.2

1.5

1.3

FAG Bearings

Neutral

1,540

2,560

1,505

1,747

17.7

18.0

111.5

130.0

13.8

11.9

2.9

2.4

22.8

21.7

1.4

1.1

Hero Motocorp

Buy

1,953

2,428

38,989

26,097

29,963

15.0

15.3

139.5

151.8

14.0

12.9

6.6

5.0

54.6

44.3

1.2

1.1

JK Tyre

Buy

94

135

386

7,517

8,329

6.1

6.3

26.2

38.5

3.6

2.4

0.5

0.4

13.4

17.2

0.3

0.3

Auto & Auto Ancillary

Mahindra and Mahindra Buy

696

824

42,702

35,881

40,746

10.0

10.0

47.5

53.2

14.6

13.1

2.9

2.5

21.3

20.5

0.9

0.8

1,147

1,227

33,135

42,887

49,079

5.5

6.6

66.8

87.6

17.2

13.1

2.0

1.7

12.1

14.1

0.6

0.5

Buy

163

216

6,398

23,342

26,366

7.8

8.2

13.3

18.0

12.3

9.1

2.9

2.3

26.2

28.4

0.4

0.4

Subros

Buy

30

34

177

1,230

1,378

8.8

8.6

4.5

5.7

6.5

5.2

0.6

0.6

9.8

11.8

0.4

0.3

Tata Motors

Buy

239

305

63,629 191,303 211,004

13.0

12.9

40.7

43.8

5.9

5.5

2.0

1.7

36.0

33.1

0.4

0.4

TVS Motor

Accumulate

39

43

1,850

7,545

8,301

6.2

6.1

4.9

5.4

7.9

7.3

1.4

1.2

18.8

18.2

0.2

0.2

Maruti

Accumulate

Motherson Sumi

Capital Goods
ABB*

Sell

791

498

16,752

8,760

10,023

7.6

7.5

18.2

20.7

43.4

38.1

5.8

5.2

14.4

14.6

1.9

1.7

BGR Energy

Neutral

285

2,056

4,195

4,837

11.0

11.0

30.1

32.4

9.5

8.8

1.6

1.5

18.4

17.6

1.0

1.0

BHEL

Neutral

232

56,784

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

193

1,732

3,047

3,328

5.4

6.9

9.6

16.2

20.0

11.9

3.9

3.2

20.7

29.7

0.7

0.5

Crompton Greaves

Accumulate

118

128

7,554

12,691

14,096

7.0

8.5

6.5

9.1

18.1

12.9

1.9

1.8

11.1

14.2

0.6

0.6

Jyoti Structures

Buy

40

67

328

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

56

69

1,451

6,858

7,431

7.5

8.3

9.0

11.5

6.3

4.9

1.1

0.9

26.9

27.2

0.3

0.3

LMW

Buy

1,742

1,992

1,962

2,369

2,727

11.7

11.7

143.4

166.0

12.1

10.5

2.0

1.9

17.4

18.4

0.3

0.2

Thermax

Neutral

507

6,043

5,514

5,559

8.9

9.6

26.9

28.4

18.9

17.9

3.3

2.9

18.4

17.1

1.0

1.0

www.angelbroking.com

Market Outlook
August 08, 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

1,335

25,058

11,220

12,896

20.0

20.6

71.1

81.2

18.8

16.4

3.3

3.0

18.1

19.0

1.9

1.6

Ambuja Cements

Neutral

191

29,320

10,205

11,659

24.6

24.2

10.8

12.0

17.6

15.8

3.7

3.3

19.7

19.8

2.4

2.0

India Cements

Neutral

86

2,631

4,364

4,791

18.9

19.1

9.2

11.4

9.3

7.5

0.7

0.7

8.0

9.5

0.5

0.5

J K Lakshmi Cements

Neutral

100

1,225

1,938

2,246

19.1

20.1

15.2

16.8

6.6

6.0

0.9

0.8

13.8

14.0

0.8

1.1

Madras Cements

Neutral

173

4,111

3,444

3,786

25.5

24.9

14.6

17.1

11.9

10.1

1.7

1.5

15.6

16.0

1.8

1.5

Shree Cements

Neutral

3,069

10,693

5,519

6,293

24.5

23.7

156.6

225.3

19.6

13.6

4.9

4.2

22.3

26.0

1.7

1.3

UltraTech Cement

Neutral

1,638

44,905

20,167

22,752

21.7

23.0

90.8

107.8

18.0

15.2

18.0

15.2

1.8

1.7

209

273

1,100

2,014

2,293

22.4

22.4

22.6

26.7

9.2

7.8

1.0

0.9

11.4

11.9

2.4

2.7

Construction
Ashoka Buildcon

Buy

Consolidated Co

Neutral

17

312

2,489

2,755

7.0

7.8

3.0

4.0

5.7

4.2

0.5

0.4

8.7

10.8

0.3

0.3

Hind. Const.

Neutral

18

1,086

4,239

4,522

9.9

11.2

(2.3)

(1.0)

(7.9)

(18.6)

1.0

1.1

(11.4)

(5.6)

1.2

1.2

IRB Infra

Buy

116

166

3,870

3,964

4,582

42.3

40.2

15.5

16.9

7.5

6.9

1.2

1.0

16.6

15.8

2.6

2.5

ITNL

Buy

173

265

3,362

6,619

7,925

23.8

23.3

22.9

27.8

7.6

6.2

1.1

1.0

15.5

16.4

2.2

2.1

IVRCL Infra

Buy

47

61

1,259

5,510

6,722

8.8

9.0

2.5

4.6

18.6

10.3

0.6

0.6

3.4

5.8

0.7

0.7

Jaiprakash Asso.

Buy

78

91

16,490

15,259

17,502

25.7

24.7

4.2

5.0

18.3

15.5

1.5

1.4

8.5

9.3

2.4

2.1

Larsen & Toubro

Accumulate

1,417

1,553

86,840

60,474

69,091

12.1

11.5

79.7

85.4

17.8

16.6

3.0

2.6

16.3

15.1

1.6

1.4

Madhucon Proj

Buy

37

56

272

2,206

2,502

10.7

10.7

4.6

4.7

7.9

7.9

0.4

0.4

5.2

5.0

0.7

0.7

Nagarjuna Const.

Neutral

40

1,033

5,453

6,169

8.1

8.5

1.6

1.9

24.5

20.9

0.4

0.4

1.8

2.1

0.6

0.7

Patel Engg.

Neutral

85

591

3,609

3,836

13.1

13.1

14.0

14.6

6.0

5.8

0.4

0.4

6.3

6.1

1.0

1.1

Punj Lloyd

Neutral

54

1,780

11,592

12,993

8.4

8.4

1.8

3.2

29.8

16.8

0.6

0.6

2.0

3.4

0.6

0.6

Sadbhav Engg.

Buy

133

182

2,000

2,789

3,147

10.6

10.7

8.4

10.4

15.8

12.8

2.1

1.9

15.0

15.6

0.9

0.8

Simplex Infra

Buy

206

265

1,017

6,732

7,837

8.1

8.4

23.5

29.4

8.7

7.0

0.8

0.7

9.6

11.0

0.5

0.4

Allahabad Bank

Accumulate

133

147

6,628

7,233

8,579

3.1

3.3

40.5

40.9

3.3

3.2

0.6

0.5

19.4

17.0

Andhra Bank

Neutral

99

5,562

5,225

6,024

3.3

3.3

22.7

25.4

4.4

3.9

0.7

0.6

16.0

15.8

Axis Bank

Buy

1,090

1,373

45,166

15,961

19,583

3.1

3.2

117.3

143.1

9.3

7.6

1.7

1.5

20.1

20.8

Bank of Baroda

Buy

658

851

25,779

15,830

19,300

2.6

2.7

118.9

147.1

5.5

4.5

0.9

0.8

16.7

18.0

Bank of India

Buy

289

354

16,556

13,159

15,851

2.4

2.5

61.1

71.1

4.7

4.1

0.8

0.7

16.6

17.0

Bank of Maharashtra

Neutral

Canara Bank

Buy

Central Bank

Neutral

Financials

www.angelbroking.com

47

2,742

3,471

3,889

3.1

3.1

9.0

11.5

5.2

4.1

0.7

0.6

13.7

15.5

363

421

16,094

11,334

13,629

2.2

2.3

75.4

85.1

4.8

4.3

0.7

0.7

15.2

15.3

72

5,285

7,181

8,365

2.5

2.7

16.3

21.8

4.4

3.3

0.8

0.7

12.7

15.1

Market Outlook
August 08, 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

402

454

5,953

5,067

5,998

2.1

2.3

105.6

111.0

3.8

3.6

0.7

0.6

17.6

16.3

92

107

3,214

3,177

3,595

2.8

2.8

25.2

25.4

3.7

3.6

0.6

0.6

18.9

16.4

Financials
Corporation Bank

Accumulate

Dena Bank

Buy

Federal Bank

Accumulate

416

459

7,113

2,736

3,165

3.4

3.4

49.3

57.4

8.4

7.3

1.1

1.0

13.9

14.5

HDFC

Reduce

720

671

108,275

7,340

8,805

3.5

3.5

31.5

37.8

22.8

19.0

4.6

4.1

34.8

32.2

HDFC Bank

Neutral

600

141,409

21,936

27,454

4.4

4.4

28.7

36.0

20.9

16.6

4.0

3.4

20.7

22.0

ICICI Bank

Buy

974

1,169

111,931

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

87

105

11,167

7,952

9,876

1.9

2.2

18.5

23.6

4.7

3.7

0.6

0.5

12.8

14.7

Indian Bank

Accumulate

179

197

7,678

6,294

7,191

3.4

3.4

40.6

44.9

4.4

4.0

0.7

0.6

18.1

17.4

IOB

Accumulate

73

84

5,850

7,473

8,732

2.5

2.5

16.7

22.6

4.4

3.3

0.5

0.5

11.8

14.4

J & K Bank

Neutral

943

4,573

2,525

2,858

3.5

3.5

175.8

183.1

5.4

5.2

1.0

0.8

19.3

17.5

LIC Housing Finance

Accumulate

258

279

13,000

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

755

975

25,603

20,116

23,625

3.3

3.4

152.8

173.9

4.9

4.3

0.9

0.8

18.2

18.0

South Ind.Bank

Accumulate

23

27

2,661

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

2,059

2,443

138,188

67,783

78,208

3.7

3.6

226.0

264.2

9.1

7.8

1.5

1.3

17.7

18.1

Syndicate Bank

Buy

98

119

5,872

6,997

8,134

3.0

3.1

27.3

29.4

3.6

3.3

0.6

0.6

19.0

17.7

UCO Bank

Neutral

70

4,670

5,642

6,438

2.5

2.5

16.4

17.6

4.3

4.0

0.8

0.7

16.2

15.4

Union Bank

Buy

171

238

9,390

10,299

12,227

2.9

3.0

42.1

49.3

4.1

3.5

0.7

0.6

16.7

17.1

United Bank

Buy

57

78

2,067

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

Neutral

54

2,659

2,579

3,028

2.1

2.3

8.8

11.6

6.1

4.6

0.7

0.6

11.1

13.3

Yes Bank

Buy

371

453

13,148

3,255

4,228

2.8

3.0

34.2

42.7

10.8

8.7

2.3

1.9

23.3

23.8

3,739

35,863

11,198

13,184

16.3

16.3

121.0

144.8

30.9

25.8

10.4

8.2

37.4

35.3

3.1

2.6

454

633

5,422

5,835

6,824

6.3

6.7

20.7

27.5

21.9

16.5

8.6

6.4

42.7

44.3

0.9

0.8

1,186

16,129

3,018

3,429

20.9

22.3

34.6

41.0

34.3

29.0

31.6

24.0

99.5

94.1

5.2

4.6

FMCG
Asian Paints

Neutral

Britannia

Buy

Colgate

Neutral

Dabur India

Neutral

120

20,939

6,124

7,030

17.0

16.8

4.5

5.2

26.9

23.2

11.1

8.8

43.2

41.5

3.4

2.9

GlaxoSmith Con*

Neutral

2,803

11,787

3,124

3,663

17.1

17.6

103.0

123.3

27.2

22.7

8.4

6.7

34.0

32.9

3.5

2.9

Godrej Consumer

Neutral

605

20,579

5,973

7,000

18.4

18.6

22.8

27.2

26.5

22.3

7.3

5.9

31.3

38.4

3.7

3.1

HUL

Neutral

470

101,669

25,350

28,974

13.9

13.9

14.3

16.5

33.0

28.6

19.6

15.1

70.9

59.8

3.8

3.2

ITC

Neutral

261

204,482

29,513

33,885

35.4

35.8

9.3

10.8

28.1

24.2

9.3

7.8

35.6

35.0

6.5

5.7

www.angelbroking.com

Market Outlook
August 08, 2012

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

Sales ( cr )

( )

Price ( )

( cr )

FY13E

OPM(%)

EPS ( )

FY14E

FY13E

FY14E

FY13E

PER(x)

P/BV(x)

FY14E

FY13E

FY14E

FY13E

RoE(%)

EV/Sales(x)

FY14E

FY13E

FY14E

FY13E

FY14E

FMCG
Marico

Neutral

189

12,169

4,667

5,427

12.8

12.9

6.6

8.1

28.4

23.2

7.6

6.0

30.0

28.8

2.6

2.2

Nestle*

Neutral

4,449

42,895

8,610

10,174

20.9

21.2

114.8

139.8

38.8

31.8

23.4

16.3

71.2

60.3

5.0

4.1

Tata Global

Neutral

130

8,030

7,207

7,927

9.7

10.0

6.6

7.9

19.6

16.5

2.0

1.9

8.6

9.5

1.0

0.9

HCL Tech

Accumulate

531

585

36,803

24,400

27,049

18.6

17.5

41.1

45.0

12.9

11.8

2.9

2.5

22.7

21.1

1.4

1.2

Hexaware

Buy

114

132

3,388

1,921

2,178

20.6

20.0

10.4

11.4

11.0

10.0

2.7

2.3

24.7

23.4

1.5

1.2

Infosys

Accumulate

2,256

2,530

129,529

39,151

41,743

31.6

31.9

161.9

174.5

13.9

12.9

3.3

2.9

23.8

22.1

2.6

2.4

Infotech Enterprises

Accumulate

172

187

1,912

1,889

2,065

18.0

17.5

18.0

19.7

9.5

8.7

1.4

1.2

14.5

13.7

0.7

0.5

KPIT Cummins

Neutral

128

2,281

2,149

2,331

15.6

14.8

10.7

11.2

11.9

11.4

2.5

2.0

20.6

17.8

1.0

0.8

Mahindra Satyam

Neutral

88

10,327

7,492

8,038

17.0

16.3

8.1

8.3

10.8

10.5

1.5

1.3

14.1

12.6

1.0

0.8

Mindtree

Accumulate

638

708

2,599

2,341

2,513

18.6

17.1

66.5

70.8

9.6

9.0

2.1

1.7

22.3

19.3

0.9

0.8

Mphasis

Neutral

404

8,481

5,704

6,009

18.6

17.7

36.0

37.1

11.2

10.9

1.6

1.4

14.0

12.6

1.0

0.9

NIIT

Buy

36

52

596

1,162

1,304

14.8

15.1

7.1

8.8

5.1

4.1

0.9

0.8

16.7

18.4

0.4

0.2

Persistent

Accumulate

376

398

1,504

1,193

1,278

25.6

24.3

42.6

44.3

8.8

8.5

1.5

1.3

17.2

15.5

0.9

0.8

TCS

Accumulate

1,265

1,304

247,510

61,046

67,507

29.3

29.1

67.3

72.4

18.8

17.5

6.0

5.0

31.9

28.3

3.7

3.3

Tech Mahindra

Neutral

756

9,642

6,282

6,477

17.5

16.5

82.9

85.0

9.1

8.9

2.0

1.6

21.6

18.4

1.5

1.3

Wipro

Buy

348

420

85,596

43,492

48,332

19.4

19.3

25.1

28.0

13.9

12.4

2.6

2.2

18.6

18.0

1.6

1.4

D B Corp

Buy

195

236

3,571

1,597

1,785

22.9

24.2

11.1

13.9

17.5

14.0

3.3

2.9

20.2

22.1

2.2

1.9

HT Media

Buy

89

113

2,085

2,111

2,263

15.2

15.2

7.3

8.1

12.1

10.9

1.3

1.2

11.2

11.2

0.5

0.4

Jagran Prakashan

Buy

96

112

3,033

1,506

1,687

22.5

23.2

6.2

7.0

15.5

13.7

3.7

3.3

25.0

25.7

2.2

1.9

PVR

Neutral

181

468

625

732

17.4

17.1

13.3

15.6

13.6

11.6

1.5

1.3

13.2

13.8

1.1

0.9

Sun TV Network

Neutral

290

11,426

2,002

2,296

77.1

76.7

18.9

22.1

15.4

13.1

3.9

3.4

27.7

28.3

5.0

4.2

Bhushan Steel

Neutral

471

9,998

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

Neutral

345

217,820

68,841

74,509

25.3

25.3

24.1

26.1

14.3

13.2

3.9

3.2

30.4

26.8

2.3

1.9

Electrosteel Castings

Buy

19

22

661

1,984

2,074

11.2

12.6

2.0

2.7

9.4

7.1

0.4

0.1

4.2

5.5

0.5

0.5

Hind. Zinc

Buy

119

142

50,260

12,446

13,538

56.1

56.6

15.2

16.5

7.9

7.2

1.6

1.3

21.7

19.8

2.2

1.6

Hindalco

Neutral

119

22,735

83,212

91,057

9.0

9.9

13.7

18.1

8.7

6.6

0.7

0.6

7.9

9.6

0.5

0.5

JSW Steel

Neutral

717

15,992

38,740

41,459

17.3

17.0

79.9

89.4

9.0

8.0

0.9

0.8

10.4

10.6

0.8

0.8

MOIL

Accumulate

267

296

4,484

1,007

1,091

56.6

56.9

29.4

31.9

9.1

8.4

1.6

1.4

19.0

18.2

2.3

1.9

Monnet Ispat

Buy

313

447

2,012

3,115

3,748

22.1

25.1

59.1

66.8

5.3

4.7

0.7

0.6

15.6

15.3

1.4

1.0

IT

Media

Metals & Mining

www.angelbroking.com

Market Outlook
August 08, 2012

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

( )

Price ( )

( cr )

Sales ( cr )
FY13E

OPM(%)

EPS ( )

FY14E

FY13E

FY14E

FY13E

PER(x)

P/BV(x)

RoE(%)

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

EV/Sales(x)

FY14E

FY13E

FY14E

Metals & Mining

Nalco

Neutral

53

13,762

8,474

9,024

12.6

16.2

2.6

3.6

20.9

14.9

1.1

1.1

5.6

7.5

1.2

1.1

NMDC

Neutral

183

72,515

11,959

13,062

78.2

78.6

19.1

20.9

9.6

8.8

2.4

2.0

27.1

24.4

4.0

3.4

SAIL

Neutral

87

35,894

50,914

60,785

14.6

15.1

9.4

10.5

9.3

8.3

0.8

0.8

9.2

9.6

1.1

1.0

Sesa Goa

Neutral

183

15,865

7,704

8,034

33.6

34.6

42.0

43.1

4.4

4.2

0.9

0.8

22.3

19.2

0.3

Sterlite Inds

Accumulate

104

115

35,051

41,680

45,382

24.2

23.2

16.3

16.9

6.4

6.2

0.7

0.6

11.3

10.7

0.5

0.4

Tata Steel

Buy

406

499

39,436 143,088 148,011

10.9

12.1

53.9

66.0

7.5

6.2

0.9

0.8

12.2

13.4

0.6

0.6

Sarda

Buy

130

148

466

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

0.6

Cairn India

Accumulate

330

380

62,990

16,605

17,258

75.4

71.7

57.0

54.9

5.8

6.0

1.1

0.9

20.2

16.3

2.9

2.2

GAIL

Neutral

377

47,872

50,176

55,815

15.5

15.8

35.4

36.5

10.7

10.3

1.9

1.7

18.9

17.0

0.1

ONGC

Accumulate

283

321

241,949 156,331 159,043

37.7

36.3

31.3

32.6

9.0

8.7

1.6

1.4

18.7

17.3

1.2

1.1

Reliance Industries

Neutral

784

256,627 362,700 380,031

Gujarat Gas

Neutral

309

Indraprastha Gas

Neutral

244

3,410

Petronet LNG

Buy

149

176

11,168

Oil & Gas

3,963

7.9

8.0

61.5

64.3

12.8

12.2

1.3

1.2

10.3

9.9

0.7

0.7

3,267

16.1

11.5

21.2

19.2

14.6

16.1

5.0

4.3

33.4

28.7

1.5

1.1

3,040

3,135

24.3

26.7

24.8

27.9

9.8

8.7

2.3

1.9

25.5

23.6

1.1

1.0

22,696

29,145

8.1

6.6

14.1

14.2

10.6

10.5

3.2

2.5

34.1

26.9

0.6

0.4

2,472

Pharmaceuticals
Alembic Pharma

Buy

64

91

1,199

1,624

1,855

14.2

15.6

6.6

9.1

9.6

7.0

2.3

1.8

27.5

29.2

1.0

0.8

Aurobindo Pharma

Buy

112

156

3,261

5,243

5,767

14.6

14.6

11.8

12.6

9.5

8.9

1.0

0.4

11.4

10.9

0.8

0.6

Aventis*

Neutral

2,218

5,108

1,482

1,682

15.5

15.5

95.0

104.0

23.4

21.3

4.1

3.2

18.6

17.0

3.2

2.8

Cadila Healthcare

Accumulate

886

953

18,142

6,196

7,443

18.5

19.5

37.6

47.7

23.6

18.6

5.3

4.2

26.8

27.5

3.0

2.4

Cipla

Accumulate

Dr Reddy's

Neutral

Dishman Pharma

Accumulate

GSK Pharma*

Neutral

Indoco Remedies

Buy

58

92

533

Ipca labs

Buy

417

475

5,259

Lupin

Accumulate

590

647

26,357

Orchid Chemicals

Buy

114

178

Ranbaxy*

Neutral

509

Sun Pharma

Neutral

669

Accumulate

299

352

399

28,251

8,031

9,130

23.4

22.4

18.4

20.0

19.1

17.6

3.2

2.7

17.8

16.6

3.3

2.9

1,657

28,132

10,696

11,662

20.7

21.0

83.7

92.9

19.8

17.8

4.1

3.5

22.4

21.0

2.7

2.5

87

92

700

1,280

1,536

17.8

17.8

9.2

11.3

9.4

7.7

0.7

0.7

7.7

8.5

1.2

1.0

2,107

17,844

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

685

837

15.2

15.2

7.4

8.9

7.8

6.5

1.2

1.0

15.9

16.3

0.9

0.8

2,850

3,474

20.7

20.7

29.2

36.6

14.3

11.4

3.4

2.7

26.1

26.1

2.0

1.6

8,426

10,082

19.7

20.0

27.4

32.4

21.5

18.2

5.2

4.1

27.0

25.2

3.0

2.4

802

2,117

2,434

17.7

17.7

16.7

22.2

6.8

5.1

0.6

0.6

9.5

11.5

1.0

0.9

21,500

12,046

11,980

18.0

15.8

35.7

29.8

14.3

17.1

5.3

4.4

43.1

28.1

1.8

1.8

69,189

9,272

11,080

38.6

38.0

22.7

22.6

29.5

29.6

4.9

4.4

17.9

15.6

6.1

4.8

342

3,736

5,218

5,644

24.2

23.8

44.6

47.6

6.7

6.3

0.7

0.6

11.0

10.6

1.0

1.1

Power
CESC

www.angelbroking.com

Market Outlook
August 08, 2012

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

( )

Price ( )

( cr )

Sales ( cr )
FY13E

OPM(%)

EPS ( )

PER(x)

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

P/BV(x)

RoE(%)

EV/Sales(x)

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

Power
GIPCL

Buy

NTPC

Neutral

67

77

1,008

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

167

137,699

74,111

85,789

23.2

23.6

12.4

14.0

13.5

11.9

1.7

1.5

13.0

13.5

2.6

2.3

51

78

1,501

657

875

52.0

56.1

8.4

12.7

6.1

4.0

0.4

0.3

6.3

8.9

3.5

2.7

Real Estate
Anant Raj

Buy

DLF

Neutral

218

36,949

9,878

12,033

44.7

46.1

9.6

13.4

22.7

16.2

1.4

1.4

6.4

8.7

6.1

5.0

HDIL

Buy

84

115

3,505

2,441

3,344

55.1

48.2

22.7

26.6

3.7

3.1

0.3

0.3

8.8

9.4

3.3

2.5

MLIFE

Buy

327

396

1,333

813

901

26.2

26.6

32.0

37.1

10.2

8.8

1.1

1.0

10.4

11.0

2.0

1.7

Bharti Airtel

Neutral

294

111,571

80,076

86,613

32.8

33.5

15.5

19.8

19.0

14.8

2.0

1.8

10.5

11.9

2.1

1.8

Idea Cellular

Neutral

80

26,446

23,209

26,063

26.2

27.5

3.3

4.9

24.3

16.2

1.9

1.7

7.7

10.3

1.6

1.4

Rcom

Neutral

58

11,940

22,125

23,734

31.9

32.0

4.5

5.9

12.9

9.9

0.3

0.3

2.5

3.1

2.0

1.7

Telecom

zOthers
Abbott India

Accumulate

1,503

1,628

3,193

1,661

1,918

9.7

12.0

60.7

90.4

24.8

16.6

5.1

4.1

22.0

27.3

1.7

1.4

Bajaj Electricals

Buy

181

246

1,803

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

Buy

297

352

375

396

470

16.7

16.5

28.0

33.2

10.6

8.9

2.2

1.8

23.8

23.1

1.1

0.9

Cravatex

Buy

609

785

157

302

364

5.7

6.0

49.0

71.0

12.4

8.6

3.7

2.6

29.8

30.7

0.6

0.5

CRISIL

Neutral

900

6,313

982

1,136

34.3

34.3

34.3

40.0

26.2

22.5

11.9

9.5

50.9

46.9

6.2

5.2

Finolex Cables

Buy

40

61

609

2,334

2,687

8.8

9.3

7.6

10.2

5.2

3.9

0.7

0.6

13.7

16.1

0.2

0.1

Force Motors

Buy

442

591

576

2,214

2,765

4.5

5.4

39.5

73.9

11.2

6.0

0.5

0.5

4.4

7.6

0.1

0.1

Goodyear India

Accumulate

330

374

762

1,511

1,692

7.9

9.0

31.5

41.3

10.5

8.0

2.1

1.7

21.2

23.5

0.3

0.2

Graphite India

Buy

83

124

1,613

2,158

2,406

18.1

18.9

12.4

14.0

6.7

5.9

0.9

0.8

14.0

14.3

0.9

0.7

Greenply Industries

Buy

185

309

447

1,925

2,235

10.6

10.9

29.6

44.1

6.3

4.2

1.0

0.8

16.8

21.0

0.5

0.4

HEG

Buy

206

242

821

1,746

1,946

16.5

17.7

22.5

32.9

9.1

6.2

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

Accumulate

2,529

2,842

2,236

1,847

2,162

4.3

7.3

61.0

120.0

41.5

21.1

3.3

2.8

9.3

16.3

1.1

0.9

INEOS ABS India

Accumulate

670

744

1,178

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

Neutral

230

265

1,535

1,842

11.1

11.1

27.3

38.3

8.4

6.0

0.7

0.6

7.9

10.2

0.6

0.6

Jyothy Laboratories

Accumulate

135

145

2,171

1,248

1,468

9.8

10.4

5.9

7.2

22.7

18.8

3.3

3.0

15.0

16.6

2.1

1.7

MCX

Buy

1,100

1,598

5,612

610

702

65.5

67.0

67.9

79.9

16.2

13.8

4.7

4.0

29.1

28.9

6.1

4.8

MRF

Buy

10,485

12,884

4,447

11,804

12,727

10.4

10.5 1,289.9 1,431.3

8.1

7.3

1.6

1.3

21.3

19.4

0.5

0.5

Page Industries

Neutral

3,058

3,411

887

1,108

18.3

18.6

95.0

120.9

32.2

25.3

16.8

13.6

57.4

59.5

3.8

3.0

Relaxo Footwears

Buy

514

684

616

1,019

1,220

11.8

12.1

48.3

62.2

10.6

8.3

2.7

2.0

28.9

28.2

0.8

0.7

www.angelbroking.com

Market Outlook
August 08, 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

zOthers
Sintex Industries

Buy

62

79

1,690

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

270

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

25

45

757

7,279

8,290

21.0

21.0

15.0

17.6

1.7

1.4

0.2

0.2

13.7

13.9

0.7

0.6

SpiceJet

Buy

36

40

1,744

5,647

6,513

3.5

6.5

1.9

4.9

18.5

7.4

43.5

6.3

0.4

0.4

TAJ GVK

Buy

66

108

415

300

319

35.8

36.2

7.9

9.1

8.4

7.3

1.1

1.0

13.9

14.4

1.8

1.5

Tata Sponge Iron

Buy

340

424

523

787

837

16.2

17.5

58.5

66.9

5.8

5.1

0.8

0.7

14.9

15.1

0.3

0.2

TVS Srichakra

Buy

337

462

258

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

0.3

United Spirits

Neutral

845

11,057

10,289

11,421

13.5

14.3

31.0

42.9

27.2

19.7

2.1

1.9

8.1

10.3

1.8

1.6

Vesuvius India

Accumulate

369

413

749

628

716

16.4

16.5

29.8

34.4

12.4

10.7

2.2

1.9

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 August 07, 2012

www.angelbroking.com

Market Outlook
August 08, 2012

www.angelbroking.com