Market Outlook: Dealer's Diary

Market Outlook
June 17, 2013
Dealers Diary
Indian shares are expected to open in green today, tracking the positive trades in
Asian indices. SGX Nifty is trading flat.
US markets closed in red on Friday, as a disappointing batch of economic data
weighed on the indices. The Fed said that industrial production came in flat in
May following a revised 0.4% decrease in April as against the economists

estimate of 0.2% increase in May. A separate report from Thomson Reuters
and the University of Michigan showed an unexpected deterioration in
consumer sentiment in June which added to the negative sentiment as well.
Selling pressure was also generated by news that the International Monetary
Fund lowered its outlook for U.S. economic growth in 2014.
Meanwhile, Indian markets rose higher on Friday aided by appreciation in INR and
better-than-expected WPI inflation data. The markets were also buoyed by

positive trades in global markets. The markets will keenly await the outcome of
the RBIs policy meet scheduled to be held today.
Domestic Indices
Chg (%)
(Pts)
(Close)
BSE Sensex
1.9
351 19,178
Nifty
1.9
109
5,808
MID CAP
1.2
73
6,181
SMALL CAP
1.0
59
5,772
BSE HC
1.0
88
8,715
79
6,319
BSE PSU
1.3
BANKEX
2.0
266 13,625
AUTO
3.0
312 10,697
METAL
2.5
194
7,940
OIL & GAS
2.3
193
8,545
BSE IT
0.4
25
5,993
(Pts)
(Close)
Global Indices
Chg (%)
Dow Jones
(0.7)
NASDAQ
(106) 15,070
(0.6)
(22)
3,424
FTSE
0.1
6,308
The trend deciding level for the day is 19,114 / 5,789 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 19,277 19,375 / 5,839 5,869 levels. However, if NIFTY trades below
19,114 / 5,789 levels for the first half-an-hour of trade then it may correct up to
19,016 18,853 / 5,759 5,709 levels.
Nikkei
1.9
Hang Sang
0.4
82
20,969
Straits Times
1.0
31
3,161
Shanghai Com
0.7
14
2,162
Indices
SENSEX
NIFTY
Indian ADR
Chg (%)
(Pts)
(Close)
INFY
0.9
0.4
$42.1
WIT
(0.8)
(0.1)
$7.3
IBN
1.1
0.4
$41.0
HDB
0.7
0.3
$37.8
Markets Today
S2
S1
PIVOT
R1
R2
18,853
5,709
19,016
5,759
19,114
5,789
19,277
5,839
19,375
5,869
News Analysis
Inflation continues to tread positively

Mahindra Group forms a global alliance with Spain's CIE Automotive
TTMT global sales down 14.9% yoy in May 2013
Advances / Declines
Net Inflows (June 13, 2013)

` cr
FII
MFs
Purch
2,461
592
Sales
3,013
554
Net
(552)
38
MTD
(961)
(597)
YTD
80,876
(12,674)
FII Derivatives (June 14, 2013)

` cr
Index Futures
Stock Futures
Purch
2,082
1,735
Sales
1,535
1,382
Net
547
354
Open Interest
10,320
29,029
Gainers / Losers
Company
Gainers
Price (`)
chg (%)
Jet Air India

JSW ENERGY
OIL INDIA
JPPOWER
Future Retail
www.angelbroking.com
Company
469
8.5
MMTC
51
8.0
Apollo Tyres
573
7.8
Losers
Price (`)
chg (%)
171
BSE
NSE
1,404
937
Declines
900
432
Unchanged
147
84
Advances
Refer detailed news analysis on the following page
(10.0)
65
(5.6)
United Brew-$
639
(4.6)
22
7.5
Syndicate Bank
123
(3.2)
130
7.4
Sun TV Network
347
(2.6)
241 12,687
Volumes (` cr)
BSE
2,507
NSE
9,596
Market Outlook
June 17, 2013
Inflation continues to tread positively

The Wholesale Price Index (WPI) based inflation moderated for the fourth straight
month in May 2013 to 4.70% as compared to 4.89% in the previous month and
7.55% in May 2012. Owing to benign commodity prices as well as a break-down
of pricing power in manufacturing, headline WPI inflation is now within the 5%
comfort zone for the second consecutive month, since its spike post Nov 2009. The
moderation is led by core inflation which eased for the ninth straight month to
2.4% as compared to 2.7% in the previous month and 5.2% in May 2012.
Headline inflation for March 2013 has been positively revised down by 31bp to
5.7% from 6.0%, mainly owing to a 242bp revision in fuel inflation. Despite the
considerable moderation in WPI inflation, we believe that the Reserve Bank of
India (RBI) is unlikely to ease policy rates in its upcoming policy meeting on June
17, 2013. We believe that the RBI is likely to be cautious since the sharp INR
depreciation could potentially compound the trade deficit in the near term and
also offset the positive impact of benign global commodity prices on inflation.
Further, inflation at the retail level, measured by the Consumer Price Index (CPI),
continues to remain elevated (9.3% in May 2013).
Trends in Inflation for May 2013

Primary articles weightage 20.1%
Inflation in primary articles (on a moderating trend since the past three months)
inched higher to 6.7% in May 2013 as compared to 5.8% in the previous month.
This can be attributed to higher inflation in primary food articles, even as non-food
articles and minerals moderated sequentially. Food inflation is mainly led by the
4.9% yoy (9.0% mom) rise in vegetables inflation against a 9.0% decline in the
previous month. In case of food articles, the marginal rise in cereal inflation to
16.0% from 15.6% in April 2013 was more than offset by moderation in pulses
inflation to 5.9% from 10.3% in the previous month.
Fuel and power weightage 14.9%

Inflation in fuel and power moderated to 7.3% during the month as compared to
8.8% in April 2013 and 11.5% in May 2012. The electricity index has gone up in
line with electricity tariff revisions by some states, pushing up inflation in this
category to 27.9% as against 13.2% in April 2013. It contributed 69bp to the
overall headline inflation of 4.70% as compared to a contribution of 33bp in the
previous eight months. The increase in the electricity index was offset by the decline
in coal index as well as moderation in mineral oils. Going ahead, the revision in
coal price index is likely to keep the fuel index from inching downwards.
Manufactured products weightage 65.0%

Inflation in manufactured products decelerated for the eighth straight month to
3.1% in May 2013 as compared to 3.4% in April 2013 and 5.2% in the
corresponding period of the previous year. Core inflation, ie the non-food
manufacturing component of inflation, softened to a 41-month-low to 2.4% as
compared to 5.2% in May 2012. The deceleration in core inflation can be attributed
to decline in commodity prices on a yoy basis as well as continued weakness in
pricing power.
Market Outlook
June 17, 2013
Policy Outlook
Despite the considerable moderation in WPI inflation, we believe that the RBI is
unlikely to ease policy rates in its policy meeting on June 17, 2013. We believe
that the RBI is likely to be cautious since the sharp INR depreciation could
potentially compound the trade deficit in the near term and also offset the positive
impact of benign global commodity prices on inflation. In fact we believe that INR
depreciation and its stabilization at a higher level could stoke imported inflation
and the RBI is likely to guard against those inflationary pressures.
Further, despite the substantial moderation in WPI inflation, inflation at the retail
level, as measured by the CPI, continues to remain elevated. CPI inflation came in
slightly lower at 9.3% in May 2013 as compared to 9.4% in April 2013 owing to
food inflation remaining above double-digits.
Mahindra Group forms a global alliance with Spain's CIE

Automotive
The Mahindra Group and CIE Automotive, Spain has signed a global alliance
agreement between Mahindra's automotive component businesses (held under its
Systech Sector) and CIE Automotive (involving also its subsidiary Autometal). The
agreement will see a formation of a global automotive component supply network
with combined annual sales of ~`15,000cr with operations in North America,
South America, Europe and Asia. As a part of the transaction, CIE Automotive
through one of its subsidiaries will acquire from Mahindra Group a stake in its
listed and unlisted companies belonging to Systech Automotive Component
business and CIE Automotive will contribute its forging businesses in Spain and
Lithuania and together consolidate all companies under MFL which will be
rechristened Mahindra CIE. Mahindra CIE will continue to be listed on BSE and
NSE. The proposed business transaction will be carried out in a series of steps over
the next year that will culminate in a) Mahindra and Mahindra taking a stake of
13.5% in CIE Automotive, which is listed in Spain. Mahindra and Mahindra will
also nominate two Directors to the CIE Board. b) CIE Automotive taking a majority
stake in a single listed entity in India which will continue to operate the current
Systech automotive component businesses globally and include CIE's European
forgings operations.
CIE Automotive is one of the main suppliers of components and sub-components
for the automobile sector operating in Europe, Brazil, NAFTA and China with sales
of EUR1.65bn. CIE develops its entire line of products through seven basic
processes or technologies (forging, machining, aluminum, stamping, plastic, iron
casting and painting). With them, CIE manufactures components and subassemblies for all parts of vehicles, including: (i) the engine and powertrain; (ii) the
chassis and/or steering assembly; and (iii) the exterior and interior of the vehicle.
CIE Automotive's operations in Brazil, Mexico, USA and China are constituted
under its subsidiary, Autometal.
We see this development as a major boost to Mahindra and Mahindra's ambitions
of emerging as a global player in the automotive component business. Further, it
would also expand the Group's geographical footprint, and grow the collective
product portfolio going ahead. We await more clarity on this deal and would be
Market Outlook
June 17, 2013
watchful of the further developments on this front. Until then, we maintain our Buy
rating on Mahindra and Mahindra with a target price of `1,090.
TTMT global sales down 14.9% yoy in May 2013

Tata Motors' (TTMT) global sales continued to slide downwards in May 2013
(down 14.9% yoy to 81,783 units) led by the poor domestic performance in the
passenger vehicle and medium and heavy commercial vehicle segments. While,
global commercial vehicle sales posted a decline of 14.2% yoy; global passenger
vehicle volumes fell by 15.5% yoy. On a mom basis though, volumes remained
flat led by 4.5% growth in the global passenger vehicle segment.
For the month of May 2013, Jaguar and Land Rover (JLR) recorded better-thanexpected growth of 3.7% yoy (8.1% mom) to 31,210 units driven by continued
momentum in the recently launched models. Jaguar sales grew strongly by 62.6%
yoy (32,4% mom) led by the growth in the XF model driven by the introduction of
the Sportbrake, AWD and smaller engine variants. Land Rover sales however
declined by 6.2% yoy as the volumes were impacted due to the impending launch
of the Range Rover Sport. On a mom basis, volumes grew by 2.6% led by growth
in Freelander, Evoque and continuous ramp-up in New Range Rover.
We retain our positive view on JLR and expect an ~13% volume CAGR
over FY2013-15E, driven by continued momentum in the luxury vehicle
market, coupled with the strong product launches that are lined up in FY2014
(expected to launch 8 new refreshes/models in FY2014) and the success of the
model launched in 4QFY2013. We maintain our Buy rating on the stock with a
sum-of-the-parts (SOTP) target price of `347.
Economic and Political News
Plan Comm. expects CAD to ease in 2013-14 on lower gold demand

RBI can consider low inflation while deciding key rate: Montek
Indian cos directly invested $1.8 bn overseas in May: RBI
Iran crude costs India $2 less than global prices: Moily
Corporate News
NTPC signs term loan agreement with Central Bank for Rs 490 cr
Infosys: Rupee rise to cushion wage hike impact
RIL-Sebi case: SAT adjourns final hearing to July 22
Dabur takes up import alert issue with US FDA
Not planning to convert Cooper deal debt into equity: Apollo
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
Market Outlook
June 17, 2013
Global economic events release calendar
Date
Time
Country Event Description
Unit
Period
Bloomberg Data
Last Reported Estimated
June 17, 2013
11:00AM
India
RBI Repo rate
Jun 17
7.25
7.25
11:00AM
India
RBI Cash Reserve ratio
Jun 17
4.00
4.00
11:00AM
India
RBI Reverse Repo rate
Jun 17
6.25
6.25
2:00PM
UK
CPI (YoY)
% Change
May
2.40
--
6:00PM
US
Housing Starts
Thousands
May
853.00
950.00
6:00PM
US
Building permits
Thousands
May
1,005.00
988.00
6:00PM
US
Consumer price index (mom)
% Change
May
(0.40)
0.20
June 19, 2013
11:30PM
US
FOMC rate decision
Jun 19
0.25
0.25
June 20, 2013
1:00PM
Germany PMI Manufacturing
Value
Jun A
49.40
--
1:00PM
Germany PMI Services
Value
Jun A
49.70
--
7:30PM
Euro Zone Euro-Zone Consumer Confidence
Value
Jun A
(21.90)
--
7:30PM
US
Existing home sales
Million
May
4.97
5.00
7:30PM
US
Consumer Confidence
S.A./ 1985=100
Jun
76.20
--
June 18, 2013
June 25, 2013
7:30PM
US
New home sales
Thousands
May
454.00
--
June 26, 2013
6:00PM
US
GDP Qoq (Annualised)
% Change
1Q T
2.40
--
June 27, 2013
1:25PM
Germany Unemployment change (000's)
Thousands
Jun
21.00
--
2:00PM
UK
GDP (YoY)
% Change
1Q F
0.60
--
6:30AM
China
PMI Manufacturing
Value
Jun
50.80
--
2:00PM
UK
PMI Manufacturing
Value
Jun
51.30
--
4:30PM
UK
BOE Announces rates
% Ratio
Jul 4
0.50
0.50
5:15PM
Euro Zone ECB announces interest rates
Jul 4
0.50
--
6:00PM
US
Change in Nonfarm payrolls
Thousands
Jun
175.00
--
6:00PM
US
Unnemployment rate
Jun
7.60
--
July 9, 2013
7:00AM
China
Consumer Price Index (YoY)
% Change
Jun
2.10
--
July 10, 2013
4:29PM
China
Exports YoY%
% Change
Jun
1.00
--
July 15, 2013
7:30AM
China
Industrial Production (YoY)
% Change
Jun
9.20
--
7:30AM
China
Real GDP (YoY)
% Change
2Q
7.70
--
August 14, 2013
11:30AM
Germany GDP nsa (YoY)
% Change
2Q P
(1.40)
--
2:30PM
Euro Zone Euro-Zone GDP s.a. (QoQ)
% Change
2Q A
(0.20)
--
July 1, 2013
July 4, 2013
July 5, 2013
Source: Bloomberg, Angel Research
Market Outlook
June 17, 2013
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
10.0
11.4
9.2
6.0
4.0
2.0
Apr-13
Jun-12
Mfg. PMI
58.0
7.5
Mar-13
(4.0)
Exhibit 4: Manufacturing and services PMI
(%)
8.0
(1.0) (0.6)
(0.7)
(2.0)
Source: MOSPI, Angel Research
Exhibit 3: Monthly WPI inflation trends
Services PMI
8.1
7.3
7.3
7.2
7.3
7.3
56.0
5.7
4.9
4.7
54.0
52.0
Source: MOSPI, Angel Research
May-13
Apr-13
Mar-13
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Exhibit 5: Exports and imports growth trends

(%)
48.0
Mar-12
May-13
Apr-13
Mar-13
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
50.0
Jul-12
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
(0.1)
May-12
4QFY13
3QFY13
2QFY13
1QFY13
4QFY12
3QFY12
2QFY12
1QFY12
4QFY11
3QFY11
2QFY11
1QFY11
4QFY10
3QFY10
Source: CSO, Angel Research
9.0
(2.0)
Jan-13
4.7 4.8
2.3
0.5
Dec-12
5.1 5.4 5.2
3.4
2.5
2.0
Nov-12
6.0
2.5
Oct-12
6.5
Feb-13
7.5
Sep-12
7.7
Aug-12
8.6
8.4
8.0
9.9
Jul-12
9.5
9.3
2QFY10
12.0
11.0
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
Exports yoy growth
Exhibit 6: Key policy rates

Repo rate
(%)
9.00
Imports yoy growth
15.0
Reverse Repo rate
CRR
7.25
8.00
7.00
6.00
6.25
5.00
4.00
4.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
Apr-13
Mar-13
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
(15.0)
Jun-12
3.00
May-13
Apr-13
Mar-13
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
Jun-12
May-12
0.0
Market Outlook
June 17, 2013
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
Sales ( cr )
FY14E
OPM(%)
EPS ( )
FY15E
FY14E
FY15E
FY14E
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
Agri / Agri Chemical

Rallis
Neutral
139
2,706
1,657
1,906
14.1
14.1
7.7
8.9
18.1
15.6
3.8
3.2
22.2
21.9
1.6
1.3
United Phosphorus
Buy
140
232
6,203
10,298
11,310
16.5
16.5
20.5
23.2
6.8
6.0
1.1
1.0
18.0
17.4
0.6
0.5
Amara Raja Batteries
Buy
247
285
4,211
3,418
3,892
14.5
14.5
18.5
20.4
13.3
12.1
3.2
2.6
26.6
23.8
1.3
1.0
Apollo Tyres
Buy
69
104
3,458
13,852
15,487
11.4
11.5
12.8
14.9
5.3
4.6
0.9
0.7
17.5
17.3
0.4
0.4
Ashok Leyland
Buy
21
27
5,707
14,038
16,442
7.6
8.7
1.1
2.2
20.5
9.6
1.8
1.6
6.2
12.5
0.5
0.4
Automotive Axle#
Neutral
234
353
834
965
9.3
10.6
17.3
27.1
13.5
8.6
1.3
1.2
9.5
14.0
0.5
0.4
Bajaj Auto
Buy
1,708
2,056
49,428
22,684
25,908
18.0
18.5
117.3
137.1
14.6
12.5
5.2
4.2
39.9
37.2
1.8
1.5
Bharat Forge
Neutral
222
5,176
6,198
6,793
14.6
14.9
14.5
17.3
15.3
12.9
2.0
1.8
13.6
14.7
0.9
0.8
Bosch India*
Neutral
8,981
28,199
9,821
11,394
17.0
17.3
373.5
438.7
24.0
20.5
4.3
3.7
18.0
17.9
2.6
2.2
CEAT
Buy
105
170
361
5,325
5,974
8.4
8.3
40.8
48.5
2.6
2.2
0.4
0.4
17.3
17.6
0.2
0.2
Exide Industries
Buy
126
150
10,672
7,053
8,061
14.2
14.5
7.8
9.1
16.0
13.8
2.7
2.4
18.1
18.2
1.2
1.0
FAG Bearings*
Neutral
1,441
2,395
1,525
1,742
14.5
15.7
88.4
109.5
16.3
13.2
2.4
2.0
15.5
16.5
1.4
1.2
Hero Motocorp
Accumulate
1,609
1,819
32,127
25,274
27,658
14.1
13.7
110.2
139.9
14.6
11.5
5.3
4.2
39.8
40.7
1.1
0.9
JK Tyre
Buy
107
154
441
7,972
8,754
7.1
7.1
37.5
44.0
2.9
2.4
0.4
0.4
16.4
16.6
0.3
0.3
Auto & Auto Ancillary
Mahindra and Mahindra Buy
923
1,090
56,664
45,254
51,197
11.4
11.7
61.2
70.2
15.1
13.1
3.2
2.7
22.7
21.9
1.0
0.8
1,456
1,847
43,968
48,455
55,723
11.2
10.9
107.8
123.2
13.5
11.8
2.0
1.8
16.2
16.0
0.7
0.6
198
222
11,616
28,442
31,493
7.5
7.8
12.5
14.8
15.8
13.4
3.9
3.1
27.5
25.8
0.6
0.5
Buy
22
30
131
1,479
1,685
10.0
9.9
5.5
7.5
4.0
2.9
0.4
0.4
11.1
13.7
0.4
0.3
Tata Motors
Buy
283
347
75,768 215,016 237,404
13.3
13.6
36.2
41.5
7.8
6.8
1.7
1.4
24.6
23.2
0.4
0.4
TVS Motor
Buy
35
41
1,656
7,715
8,584
6.0
6.1
5.0
5.8
7.0
6.0
1.2
1.0
18.1
18.5
0.2
0.1
ABB*
Sell
592
461
12,553
8,073
9,052
5.5
6.9
11.5
16.9
51.4
35.0
4.7
4.5
9.3
13.1
1.5
1.3
BGR Energy
Neutral
133
963
4,114
4,886
11.4
10.7
24.9
28.0
5.4
4.8
0.7
0.7
25.2
22.6
0.5
0.5
BHEL
Neutral
175
42,833
44,054
39,326
16.8
15.1
20.6
16.1
8.5
10.9
1.9
1.7
23.5
16.1
0.9
0.9
Blue Star
Buy
160
230
1,434
2,896
3,087
5.6
6.2
9.3
11.7
17.1
13.6
2.8
2.4
17.6
19.2
0.6
0.5
Crompton Greaves
Buy
85
117
5,459
13,446
15,272
6.7
7.6
6.6
8.9
12.8
9.6
1.4
1.3
11.4
14.0
0.5
0.5
Jyoti Structures
Neutral
24
195
3,360
3,597
9.7
9.8
7.3
10.2
3.2
2.3
0.7
0.6
8.8
11.4
0.3
0.3
KEC International
Buy
37
63
938
7,709
8,399
6.7
7.2
6.1
8.5
6.0
4.3
0.8
0.7
20.2
23.0
0.3
0.3
Thermax
Neutral
595
7,087
5,780
6,430
9.5
9.6
29.8
33.0
20.0
18.0
3.4
2.9
17.9
17.4
1.0
0.9
1,205
1,361
22,615
11,979
13,254
19.7
21.3
77.1
91.4
15.6
13.2
2.8
2.5
18.7
20.0
1.6
1.4
Maruti
Buy
Motherson Sumi
Accumulate
Subros
Capital Goods
Cement
ACC
Accumulate
Market Outlook
June 17, 2013
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
( )
Price ( )
( cr )
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
Cement
Ambuja Cements
Neutral
175
27,016
10,232
11,762
23.5
24.5
10.3
12.2
17.0
14.4
2.8
2.6
17.2
18.6
2.1
1.7
India Cements
Neutral
63
1,948
4,929
5,434
17.4
17.1
8.9
10.9
7.1
5.8
0.5
0.5
7.7
9.1
0.7
0.6
J K Lakshmi Cement
Buy
106
143
1,241
2,247
2,742
21.0
23.1
17.8
21.8
5.9
4.8
0.9
0.7
15.5
16.4
0.5
0.9
Madras Cements
Neutral
235
5,590
4,234
4,788
23.9
24.0
18.5
22.8
12.7
10.3
2.0
1.7
17.2
18.2
1.7
1.4
Shree Cement^
Neutral
4,615
16,076
6,540
7,452
27.4
26.6
319.7
369.9
14.4
12.5
3.6
2.9
27.5
25.4
1.8
1.4
UltraTech Cement
Neutral
1,822
49,964
21,947
25,049
23.8
23.8
106.1
119.8
17.2
15.2
2.8
2.5
17.7
17.3
2.4
2.0
189
255
996
1,928
2,234
21.0
21.5
18.0
22.2
10.5
8.5
0.9
0.8
10.2
10.1
1.9
1.9
10
185
2,281
2,492
5.9
6.9
0.7
2.0
14.7
5.0
0.3
0.3
2.3
6.5
0.4
0.3
Construction
Ashoka Buildcon
Buy
Consolidated Co
Neutral
IRB Infra
Buy
114
157
3,787
3,997
4,312
45.5
46.4
15.7
16.6
7.3
6.9
1.1
0.9
15.2
14.5
3.4
3.6
ITNL
Buy
175
230
3,407
7,444
8,041
27.4
28.9
29.8
32.1
5.9
5.5
0.8
0.7
14.9
14.2
2.6
2.6
IVRCL Infra
Buy
16
29
480
5,673
5,892
8.1
8.4
1.4
1.8
10.9
8.5
0.2
0.2
2.0
2.6
0.5
0.5
Jaiprakash Asso.
Buy
61
90
13,481
14,850
15,631
24.9
25.1
2.5
2.9
24.0
21.3
1.0
0.9
4.2
4.7
2.7
2.7
Larsen & Toubro
Buy
1,393
1,761
85,837
68,946
78,040
10.5
10.5
77.9
88.3
17.9
15.8
2.6
2.3
15.5
15.6
1.4
1.2
Nagarjuna Const.
Buy
29
42
731
6,167
6,945
8.0
8.2
2.7
3.6
10.7
7.8
0.3
0.3
2.7
3.6
0.5
0.5
Punj Lloyd
Neutral
41
1,352
12,954
14,740
9.9
9.9
0.5
0.9
80.2
43.7
0.5
0.5
0.6
1.1
0.5
0.5
Sadbhav Engg.
Buy
101
139
1,525
2,462
2,731
10.6
10.6
5.9
6.7
17.2
15.2
1.7
1.5
10.2
10.5
0.9
0.8
Simplex Infra
Buy
91
131
452
6,308
7,033
9.5
9.6
11.9
18.7
7.7
4.9
0.3
0.3
4.5
6.7
0.5
0.5
Unity Infra
Buy
27
41
198
2,146
2,339
13.7
13.8
11.0
11.5
2.4
2.3
0.2
0.2
9.3
9.0
0.6
0.6
Allahabad Bank
Buy
110
144
5,500
6,876
7,545
2.6
2.5
28.2
30.9
3.9
3.6
0.6
0.5
12.8
12.7
Andhra Bank
Neutral
85
4,745
5,254
5,900
2.8
2.8
21.2
22.9
4.0
3.7
0.6
0.5
13.3
13.0
Axis Bank
Buy
1,269
1,853
59,468
19,055
22,710
3.3
3.2
130.7
152.3
9.7
8.3
1.6
1.4
17.2
17.6
Bank of Baroda
Buy
625
851
26,310
16,365
18,781
2.2
2.3
121.3
142.5
5.2
4.4
0.8
0.7
15.1
15.7
Bank of India
Buy
281
350
16,721
14,482
16,383
2.3
2.3
58.1
68.1
4.8
4.1
0.7
0.6
14.4
15.0
Bank of Maharashtra
Buy
52
64
3,460
4,392
4,743
3.1
3.0
12.6
13.7
4.1
3.8
0.7
0.6
16.8
16.0
Canara Bank
Buy
381
481
16,874
11,928
13,467
2.1
2.2
74.8
86.0
5.1
4.4
0.7
0.6
13.7
14.2
Central Bank
Accumulate
63
69
6,576
8,249
9,211
2.4
2.5
14.9
18.2
4.2
3.5
0.6
0.5
12.5
13.8
Corporation Bank
Buy
372
495
5,695
5,558
6,121
2.0
2.0
98.4
107.7
3.8
3.5
0.6
0.5
14.9
14.5
Dena Bank
Buy
83
97
2,893
3,187
3,582
2.3
2.4
23.8
25.5
3.5
3.2
0.5
0.5
15.9
15.1
Federal Bank
Accumulate
422
459
7,216
2,873
3,413
3.0
3.1
52.7
62.0
8.0
6.8
1.0
0.9
13.4
14.2
Financials
Market Outlook
June 17, 2013
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
Financials
HDFC
Accumulate
813
933
125,919
8,573
10,142
3.6
3.6
37.0
43.6
22.0
18.6
4.5
4.0
30.0
30.3
HDFC Bank
Accumulate
656
722
156,590
27,682
33,916
4.6
4.6
35.3
42.7
18.6
15.4
3.7
3.1
21.3
21.8
ICICI Bank
Buy
1,068
1,503
123,236
25,705
30,330
3.1
3.2
83.9
96.3
12.7
11.1
1.7
1.5
15.2
15.7
IDBI Bank
Buy
75
93
10,022
9,477
10,678
2.0
2.1
19.6
22.6
3.9
3.3
0.5
0.4
12.8
13.4
Indian Bank
Buy
128
185
5,520
6,185
6,978
3.0
3.0
37.0
42.2
3.5
3.0
0.5
0.5
14.8
15.1
IOB
Buy
57
66
5,290
8,142
8,956
2.5
2.5
16.5
20.7
3.5
2.8
0.4
0.4
11.8
13.4
J & K Bank
Accumulate
1,218
1,315
5,904
3,074
3,140
3.5
3.2
224.7
201.5
5.4
6.0
1.0
0.9
20.6
16.1
LIC Housing Finance
Buy
250
298
12,622
2,113
2,525
2.3
2.3
25.4
29.2
9.9
8.6
1.7
1.5
18.4
18.3
Oriental Bank
Buy
229
285
6,674
6,835
7,588
2.6
2.6
56.5
63.8
4.1
3.6
0.5
0.5
13.1
13.4
Punjab Natl.Bank
Buy
721
994
25,487
20,876
23,929
3.3
3.4
151.7
177.0
4.8
4.1
0.8
0.7
16.1
16.5
South Ind.Bank
Neutral
St Bk of India
Buy
Syndicate Bank
Accumulate
UCO Bank
Neutral
Union Bank
United Bank
24
3,277
1,839
2,091
2.9
2.8
4.2
4.5
5.8
5.4
1.0
0.9
18.2
17.0
2,020
2,637
138,161
67,243
76,612
3.1
3.0
242.4
284.8
8.3
7.1
1.3
1.1
16.3
16.8
127
142
7,630
7,238
8,249
2.7
2.6
27.1
30.4
4.7
4.2
0.7
0.6
16.1
15.9
76
5,720
6,250
6,738
2.6
2.5
12.1
14.7
6.3
5.2
1.0
0.8
11.8
13.0
Buy
208
260
12,398
11,229
12,794
2.6
2.6
40.7
48.2
5.1
4.3
0.7
0.6
14.6
15.4
Buy
50
65
1,859
3,443
3,998
2.4
2.6
15.1
20.4
3.3
2.4
0.4
0.4
12.1
14.8
Vijaya Bank
Neutral
50
2,478
2,730
3,059
1.9
2.0
10.2
11.3
4.9
4.4
0.6
0.5
11.8
12.0
Yes Bank
Accumulate
456
508
16,395
4,390
5,411
2.8
2.8
41.6
47.9
11.0
9.5
2.3
1.9
23.2
22.1
FMCG
Asian Paints
Neutral
4,442
42,606
12,332
14,524
16.5
16.3
141.6
162.7
31.4
27.3
9.9
7.9
35.4
32.2
3.3
2.8
Britannia
Neutral
674
8,066
6,417
7,502
6.1
6.3
23.2
27.9
29.1
24.2
10.0
7.9
38.3
36.4
1.2
1.0
Colgate
Neutral
1,310
17,821
3,588
4,130
20.5
20.9
44.2
51.8
29.7
25.3
28.9
21.1
108.6
96.2
4.8
4.1
Dabur India
Neutral
150
26,222
7,183
8,340
16.8
16.8
5.4
6.3
28.0
23.9
10.9
8.5
41.5
40.1
3.6
3.1
GlaxoSmith Con*
Neutral
5,683
23,898
3,617
4,259
16.1
16.4
122.2
148.7
46.5
38.2
14.5
11.6
34.1
33.7
6.1
5.1
Godrej Consumer
Neutral
775
26,380
7,801
9,017
16.2
15.9
25.1
29.7
30.8
26.1
6.7
5.5
24.9
24.2
3.5
3.0
HUL
Neutral
595
128,613
29,167
33,164
13.6
13.7
17.1
18.4
34.8
32.3
33.5
24.2
113.4
87.0
4.3
3.7
ITC
Neutral
327
258,232
34,294
39,991
36.8
37.0
11.3
13.3
29.0
24.5
9.6
7.7
36.1
34.9
7.2
6.1
Marico
Neutral
222
14,318
5,273
6,044
14.8
14.9
7.3
8.7
30.6
25.6
6.0
4.9
21.4
21.0
2.7
2.3
Nestle*
Neutral
5,111
49,275
9,447
10,968
22.1
22.3
127.5
154.1
40.1
33.2
20.0
14.5
57.7
50.7
5.2
4.4
Tata Global
Neutral
139
8,602
8,069
8,957
9.8
9.7
7.8
8.6
17.8
16.2
2.1
2.0
9.5
9.7
1.0
0.9
Market Outlook
June 17, 2013
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
( )
Price ( )
( cr )
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
755
863
52,613
28,633
32,216
21.5
20.7
57.3
61.7
13.2
12.2
3.1
2.6
24.0
21.5
1.7
1.4
79
96
2,358
2,091
2,289
19.0
18.8
10.6
11.3
7.4
7.0
1.7
1.5
22.8
21.7
1.0
0.8
IT
HCL Tech^
Accumulate
Hexaware*
Buy
Infosys
Neutral
2,379
136,617
43,338
47,244
27.5
27.7
169.4
182.6
14.1
13.0
2.9
2.5
20.8
19.3
2.5
2.2
Infotech Enterprises
Accumulate
170
185
1,897
1,956
2,174
17.9
17.7
20.4
21.9
8.3
7.8
1.2
1.1
14.7
13.7
0.6
0.5
KPIT Cummins
Buy
111
135
2,141
2,513
2,819
16.1
15.5
12.6
14.0
8.8
7.9
1.5
1.3
17.9
16.6
0.8
0.6
Mahindra Satyam
Accumulate
112
126
13,157
8,278
9,062
20.3
20.1
10.5
11.4
10.6
9.8
2.5
2.0
23.1
20.0
1.2
1.0
Mindtree
Accumulate
801
920
3,326
2,599
2,871
19.4
19.2
85.2
92.3
9.4
8.7
2.0
1.6
21.4
18.9
1.0
0.8
Mphasis&
Neutral
390
8,192
6,096
6,646
17.6
17.4
38.1
41.6
10.2
9.4
1.5
1.3
14.2
13.7
0.9
0.7
NIIT
Buy
21
30
347
1,144
1,267
9.0
9.1
4.3
5.4
4.9
3.9
0.5
0.5
10.3
12.0
0.1
Persistent
Buy
501
593
2,006
1,445
1,617
25.2
25.0
55.3
59.3
9.1
8.5
1.7
1.4
18.2
16.5
1.0
0.7
TCS
Accumulate
1,444
1,585
282,672
71,833
81,893
28.4
28.0
78.5
88.0
18.4
16.4
5.6
4.6
30.2
27.9
3.7
3.2
Tech Mahindra
Buy
968
1,170
12,434
7,779
8,398
19.7
19.3
107.4
117.8
9.0
8.2
1.9
1.6
21.2
19.0
1.6
1.4
Wipro
Accumulate
340
385
83,775
40,173
43,697
20.4
20.6
26.2
28.5
13.0
11.9
2.6
2.2
19.7
18.4
1.6
1.3
D B Corp
Buy
231
290
4,244
1,750
1,925
25.1
26.6
14.2
16.8
16.3
13.8
3.5
3.0
23.4
23.4
2.3
2.1
HT Media
Buy
100
117
2,351
2,205
2,380
15.1
15.6
8.3
9.1
12.1
11.0
1.3
1.2
11.5
11.4
0.7
0.6
Jagran Prakashan
Buy
91
119
3,024
1,664
1,825
20.9
23.0
6.4
7.8
14.2
11.7
2.9
2.6
21.0
23.1
1.9
1.7
PVR
Neutral
322
1,276
1,359
1,540
17.3
17.4
17.2
21.6
18.7
15.0
1.9
1.7
10.3
12.0
1.4
1.2
Sun TV Network
Neutral
356
14,024
2,287
2,551
69.7
70.5
20.0
23.3
17.8
15.3
4.4
3.9
26.4
27.3
5.8
5.1
Bhushan Steel
Neutral
462
10,470
13,794
17,088
30.9
33.5
49.3
66.6
9.4
6.9
1.0
0.9
11.3
13.5
2.4
1.9
Coal India
Buy
299
345
188,891
72,174
76,311
33.3
28.4
28.4
30.9
10.5
9.7
2.9
2.5
37.6
36.2
1.8
1.6
Electrosteel Castings
Buy
14
24
441
1,976
2,017
11.8
12.7
1.3
2.6
10.7
5.2
0.1
0.1
2.6
5.2
0.5
0.1
GMDC
Buy
122
193
3,883
1,920
2,239
53.2
52.9
21.6
25.0
5.7
4.9
1.3
1.1
25.1
23.8
1.5
1.1
Hind. Zinc
Buy
108
145
45,528
12,358
13,659
51.4
51.6
16.0
17.6
6.7
6.1
1.2
1.1
19.4
18.4
1.4
0.9
Hindalco
Neutral
97
18,543
89,352
93,672
8.8
9.2
13.4
15.0
7.2
6.5
0.5
0.5
7.3
7.6
0.6
0.5
JSW Steel
Neutral
671
14,975
39,973
40,926
17.2
17.0
71.9
82.8
9.3
8.1
0.8
0.7
9.0
9.6
0.7
0.6
MOIL
Buy
204
248
3,430
1,010
1,046
46.5
47.6
26.8
28.8
7.6
7.1
1.1
1.0
15.4
14.7
1.0
0.7
Monnet Ispat
Buy
122
193
780
2,326
2,709
21.4
23.1
33.3
43.1
3.7
2.8
0.3
0.3
8.3
9.9
1.4
1.0
Nalco
Neutral
30
7,629
7,656
7,988
13.1
13.5
2.6
2.6
11.6
11.3
0.6
0.6
5.5
5.5
0.4
0.5
NMDC
Buy
107
156
42,601
10,461
11,892
71.6
72.6
16.3
17.6
6.6
6.1
1.4
1.2
22.1
21.4
2.3
2.0
Media
Metals & Mining
Market Outlook
June 17, 2013
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
( )
Price ( )
( cr )
FY14E
FY15E
OPM(%)
EPS ( )
FY14E
FY15E
FY14E
PER(x)
P/BV(x)
RoE(%)
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
EV/Sales(x)
FY15E
FY14E
FY15E
Metals & Mining

SAIL
Neutral
Sesa Goa
Buy
53
22,075
44,060
54,786
9.4
11.5
5.2
7.2
10.2
7.5
0.5
0.5
5.2
6.8
0.8
0.6
140
166
12,172
3,742
4,426
32.9
32.8
30.0
29.8
4.7
4.7
0.6
0.6
14.3
12.5
4.0
3.3
Sterlite Inds
Tata Steel
Buy
82
100
27,389
44,462
45,568
23.2
24.7
18.1
20.2
4.5
4.0
0.5
0.4
11.3
11.4
0.6
0.5
Buy
266
378
25,849 140,917 151,537
9.7
10.8
30.9
47.6
8.6
5.6
0.8
0.7
9.6
13.4
0.6
0.5
Sarda
Buy
101
153
363
1,494
1,568
19.1
20.3
31.3
36.5
3.2
2.8
0.4
0.3
11.8
12.4
0.6
0.5
Prakash Industries
Godawari Power and
Ispat
Oil & Gas
Buy
30
45
405
2,615
2,776
12.1
12.0
9.8
10.4
3.1
2.9
0.2
0.2
6.5
6.5
0.4
0.4
Buy
76
102
249
2,344
2,509
14.9
15.4
38.7
47.0
2.0
1.6
0.2
0.2
12.3
12.9
0.5
0.4
Cairn India
Buy
290
345
55,398
16,482
16,228
69.4
53.3
53.3
49.6
5.4
5.9
0.8
0.8
16.5
13.6
2.0
1.7
GAIL
Neutral
297
37,661
52,102
52,876
15.7
16.1
34.1
35.7
8.7
8.3
1.4
1.2
16.4
15.3
0.3
0.2
ONGC
Buy
309
372
264,493 170,063 193,024
36.3
36.9
34.7
38.3
8.9
8.1
1.5
1.4
18.3
17.9
1.3
1.0
Reliance Industries
Neutral
789
254,851 380,031 407,721
9.9
69.3
69.3
78.0
11.4
10.1
1.1
1.0
11.5
11.7
0.6
0.6
Gujarat Gas*
Neutral
208
2,670
3,707
3,850
11.7
12.4
23.7
25.7
8.8
8.1
2.5
2.1
29.6
28.2
0.6
0.5
Indraprastha Gas
Neutral
279
3,905
3,700
4,218
23.4
22.8
26.7
30.4
10.5
9.2
2.2
1.8
22.7
21.8
1.1
0.9
Petronet LNG
Gujarat State Petronet
Ltd.
Pharmaceuticals
Buy
132
167
9,870
40,356
40,872
5.8
6.4
15.0
16.7
8.8
7.9
1.8
1.6
23.0
21.5
0.3
0.3
53
3,005
1,171
1,287
91.9
91.9
10.1
11.3
5.3
4.7
0.9
0.7
17.3
16.8
Alembic Pharma
Accumulate
129
139
2,427
1,736
2,008
17.1
18.9
10.7
13.9
12.0
9.3
3.8
2.8
35.0
34.7
1.5
1.2
Aurobindo Pharma
Buy
166
271
4,828
6,641
7,637
15.9
15.9
17.3
20.6
9.6
8.1
1.5
1.3
19.5
18.9
1.2
1.0
Aventis*
Neutral
2,470
5,688
1,682
1,917
16.6
16.6
92.4
99.1
26.7
24.9
3.8
3.8
15.7
14.8
3.0
2.5
Cadila Healthcare
Buy
741
929
15,168
7,280
8,640
15.5
15.7
38.3
46.5
19.3
15.9
4.2
3.4
23.5
23.5
2.4
2.0
Cipla
Buy
379
477
30,419
9,274
10,796
23.1
23.1
21.0
23.8
18.0
15.9
2.9
2.5
17.2
16.8
3.0
2.5
Dr Reddy's
Buy
2,157
2,535
36,647
13,377
15,350
20.4
20.1
112.3
126.8
19.2
17.0
4.1
3.4
23.5
21.8
2.8
2.4
Dishman Pharma
Buy
GSK Pharma*
Neutral
Indoco Remedies
Buy
Ipca labs
Neutral
60
168
480
1,394
1,534
22.5
22.4
15.0
16.8
4.0
3.5
0.4
0.4
11.0
11.2
1.0
0.8
2,469
20,912
2,854
3,145
28.6
28.6
76.6
83.3
32.2
29.6
9.7
8.8
31.1
31.0
6.5
5.8
64
78
594
760
922
15.3
15.3
6.1
7.8
10.6
8.3
1.3
1.1
12.9
14.7
1.0
0.8
Neutral
641
8,084
3,243
3,826
20.5
21.5
36.0
44.4
17.8
14.4
4.2
3.3
26.0
25.4
2.6
2.2
Lupin
Buy
760
877
34,026
11,641
13,933
21.3
21.3
34.8
41.8
21.8
18.2
5.1
4.0
26.2
24.8
3.0
2.4
Ranbaxy*
Neutral
374
15,818
11,400
12,060
10.5
12.5
17.5
22.5
21.4
16.6
3.4
3.0
17.0
19.1
1.3
1.2
Sun Pharma
Neutral
949
98,171
13,509
15,846
41.0
41.0
33.0
39.8
28.8
23.9
5.8
4.8
22.0
22.0
6.7
5.5
70
78
1,059
1,444
1,482
33.4
33.0
13.7
14.8
5.1
4.7
0.6
0.5
12.3
12.0
0.8
0.6
Power
GIPCL
Accumulate
Market Outlook
June 17, 2013
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
( )
Price ( )
( cr )
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
Accumulate
150
163
123,476
76,734
86,680
24.5
24.3
13.4
14.5
11.2
10.3
1.4
1.3
12.8
12.7
2.3
2.2
DLF
Buy
187
236
33,192
8,293
9,622
36.5
36.1
5.7
6.7
32.7
27.7
1.2
1.1
3.7
4.1
6.1
5.1
MLIFE
Buy
398
476
1,623
888
1,002
30.6
30.6
38.8
43.4
10.2
9.2
1.1
1.0
11.2
11.4
2.4
2.1
Bharti Airtel
Buy
288
338
109,217
86,592
95,860
31.4
31.8
10.9
14.5
26.4
19.8
2.0
1.9
7.7
9.3
1.9
1.6
Idea Cellular
Neutral
135
44,789
25,122
27,663
27.0
27.2
4.0
4.8
34.0
28.4
2.8
2.6
8.3
9.1
2.2
1.9
Rcom
Neutral
106
21,775
22,801
24,628
31.0
31.3
3.6
5.3
29.6
20.0
0.6
0.6
2.2
3.1
2.5
2.2
1,445
1,659
3,070
1,863
2,081
11.8
12.4
71.2
83.0
20.3
17.4
4.1
3.5
21.6
21.5
1.4
1.1
Power
NTPC
Real Estate
Telecom
Others
Abbott India*
Accumulate
Bajaj Electricals
Buy
166
237
1,658
3,885
4,472
5.4
7.2
11.0
19.7
15.2
8.4
2.1
1.7
13.5
20.3
0.4
0.4
Cera Sanitaryware
Accumulate
522
562
660
630
795
14.4
13.6
42.8
51.1
12.2
10.2
2.9
2.3
26.6
25.2
1.0
0.8
Cravatex
Buy
314
459
81
248
284
6.5
7.3
27.2
38.2
11.6
8.2
1.8
1.5
15.7
18.5
0.5
0.4
Finolex Cables
Buy
50
68
757
2,563
2,899
9.8
9.8
10.1
11.3
4.9
4.4
0.7
0.6
14.3
13.8
0.2
0.2
Force Motors
Buy
290
437
377
2,304
2,649
3.1
3.6
28.0
43.7
10.4
6.6
0.3
0.3
3.1
4.7
0.1
0.1
Goodyear India*
Accumulate
301
345
693
1,458
1,542
8.3
9.0
32.3
37.0
9.3
8.1
1.7
1.5
19.5
19.3
0.3
0.2
Hitachi
Buy
130
177
353
1,053
1,169
6.3
7.1
13.8
17.7
9.4
7.3
1.3
1.1
15.0
16.7
0.4
0.3
2,449
2,165
1,842
2,131
7.7
7.8
112.4
132.4
21.8
18.5
2.7
2.4
13.3
13.8
1.1
0.9
Honeywell Automation* Neutral

IFB Agro
Buy
159
198
143
495
651
12.7
12.9
29.3
39.5
5.4
4.0
0.8
0.7
15.4
17.6
0.4
0.3
ITD Cementation
Buy
164
234
189
1,430
1,573
11.1
11.0
19.1
26.9
8.6
6.1
0.5
0.4
4.9
6.3
0.5
0.5
Jyothy Laboratories
Neutral
191
3,075
1,220
1,476
13.3
13.6
5.5
9.0
34.6
21.1
4.0
3.5
12.1
17.7
2.9
2.3
MRF
Neutral
14,357
6,089
11,799
12,587
14.1
13.5 1,792.4 1,802.0
8.0
8.0
1.7
1.4
23.5
19.2
0.6
0.6
Page Industries
Buy
3,988
4,611
4,448
1,057
1,282
19.4
19.6
124.8
153.7
32.0
25.9
15.8
11.7
56.3
51.8
4.3
3.5
Relaxo Footwears
Buy
664
791
797
1,146
1,333
10.9
11.4
45.9
60.9
14.5
10.9
3.0
2.4
23.0
24.6
0.9
0.7
Siyaram Silk Mills
Buy
247
343
232
1,158
1,322
11.9
11.9
72.9
85.7
3.4
2.9
0.6
0.5
19.9
19.6
0.4
0.4
Styrolution ABS India*
Buy
415
617
730
1,068
1,223
9.6
9.6
38.1
44.1
10.9
9.4
1.5
1.3
14.5
14.7
0.7
0.6
TAJ GVK
Buy
60
108
378
300
319
35.8
36.2
7.9
9.1
7.6
6.6
1.0
0.9
13.9
14.4
1.6
1.3
Tata Sponge Iron
Buy
277
371
426
814
849
17.0
17.6
64.6
69.2
4.3
4.0
0.6
0.5
14.5
13.8
0.1
(0.1)
TTK Healthcare
Buy
533
686
414
435
516
6.2
7.1
24.3
33.3
21.9
16.0
3.6
3.1
17.6
20.8
0.8
0.6
Tree House
Accumulate
274
297
986
153
194
53.0
52.8
12.4
15.6
22.1
17.5
2.6
2.3
11.8
13.1
6.6
5.1
TVS Srichakra
Buy
183
252
140
1,591
1,739
6.1
6.6
24.5
41.9
7.5
4.4
0.8
0.7
10.9
17.2
0.3
0.3
United Spirits
Neutral
2,332
33,896
12,294
14,162
12.0
12.0
42.1
67.7
55.4
34.5
3.9
3.5
9.1
10.7
3.1
2.7
Market Outlook
June 17, 2013
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
( )
Price ( )
( cr )
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
FY15E
365
439
741
600
638
20.1
19.4
35.7
36.6
10.2
10.0
1.8
1.6
19.4
17.1
1.0
0.9
Others
Vesuvius India*
Buy
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on June 14, 2013
Market Outlook
June 17, 2013

Market Outlook: Dealer's Diary

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Market Outlook: Dealer's Diary

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Market Outlook

June 17, 2013

May following a revised 0.4% decrease in April as against the economists

better-than-expected WPI inflation data. The markets were also buoyed by

OIL & GAS

Inflation continues to tread positively

Net Inflows (June 13, 2013)

FII Derivatives (June 14, 2013)

Jet Air India

Refer detailed news analysis on the following page

Inflation continues to tread positively

Trends in Inflation for May 2013

Fuel and power weightage 14.9%

Manufactured products weightage 65.0%

Mahindra Group forms a global alliance with Spain's CIE

TTMT global sales down 14.9% yoy in May 2013

Economic and Political News

Plan Comm. expects CAD to ease in 2013-14 on lower gold demand

Country Event Description

June 17, 2013

RBI Repo rate

RBI Cash Reserve ratio

RBI Reverse Repo rate

Consumer price index (mom)

June 19, 2013

FOMC rate decision

June 20, 2013

Germany PMI Manufacturing

Germany PMI Services

Euro Zone Euro-Zone Consumer Confidence

Existing home sales

June 18, 2013

June 25, 2013

New home sales

June 26, 2013

GDP Qoq (Annualised)

June 27, 2013

Germany Unemployment change (000's)

BOE Announces rates

Euro Zone ECB announces interest rates

Change in Nonfarm payrolls

Consumer Price Index (YoY)

July 10, 2013

July 15, 2013

Industrial Production (YoY)

Real GDP (YoY)

August 14, 2013

Germany GDP nsa (YoY)

Euro Zone Euro-Zone GDP s.a. (QoQ)

Source: Bloomberg, Angel Research

Exhibit 2: IIP trends

Exhibit 4: Manufacturing and services PMI

Source: MOSPI, Angel Research

Exhibit 3: Monthly WPI inflation trends

Source: MOSPI, Angel Research

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

Exhibit 5: Exports and imports growth trends

Source: CSO, Angel Research

5.1 5.4 5.2

Exports yoy growth

Exhibit 6: Key policy rates

Imports yoy growth

Reverse Repo rate