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Market Outlook

July 13, 2012

Dealers Diary
The Indian markets are expected to open flattish mirroring the SGX Nifty and Asian
stocks which are trading close to their opening levels. Asian stocks rose, with the
benchmark index poised to end its six days of losses after data showed Chinas
economy grew 7.6% in the second quarter from a year earlier.

Domestic Indices

Chg (%)

(Pts)

(Close)

BSE Sensex

(1.5) (256.6) 17,233

Nifty

(1.3)

(71.1)

5,235

MID CAP

(0.6)

(37.1)

6,262

The US economic jobless claims data release showed that jobless claims fell to
350,000 from the previous week's revised figure of 376,000. The drop surprised
economists, who had expected jobless claims to edge up to 375,000 from the
374,000 originally reported for the previous week. However, traders largely
shrugged off this report from the Labor Department as concerns about the outlook
for the economy continued to weigh on the markets. The US stock markets
eventually ended in the red.

SMALL CAP

(0.7)

(44.6)

6,745

BSE HC

(0.1)

(5.5)

6,938

BSE PSU

(0.1)

(5.5)

7,332

BANKEX

(0.9) (114.6) 12,208

AUTO

(1.2) (108.3)

METAL

(1.0) (111.8) 10,765

Indian shares tumbled on Thursday, extending the previous session's losses, as


Infosys' first-quarter earnings and lower FY13 guidance damped investor mood.
Negative global cues also weighed on investor sentiment, overshadowing data that
showed India's industrial output rebounded in May from a contraction

BSE IT

OIL & GAS


Global Indices

0.3

9,312

21.8

8,027

(5.1) (289.8)

5,384

Chg (%)

(Pts)

(Close)

Dow Jones

(0.3)

(31.3) 12,573

NASDAQ

(0.8)

(21.8)

2,866

FTSE

(1.0)

(56.2)

5,608

Markets Today

Nikkei

(1.5) (131.0)

8,720

The trend deciding level for the day is 17,248 / 5,238 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 17,314 17,396 / 5,259 5,282 levels. However, if NIFTY trades below
17,248 / 5,238 levels for the first half-an-hour of trade then it may correct up to
17,166 17,099 / 5,215 5,194 levels.

Hang Seng

(2.0) (394.8) 19,025

Straits Times

(0.6)

(17.3)

2,972

0.5

10.1

2,185

Chg (%)

(Pts)

(Close)

Indices

S2

S1

PIVOT

R1

R2

INFY

(11.2)

4.9

$38.8

SENSEX

17,099

17,166

17,248

17,314

17,396

WIT

(5.2)

(0.4)

$8.1

NIFTY

5,194

5,215

5,238

5,259

5,282

IBN

(2.4)

0. 8

$33.0

HDB

(1.9)

0.6

$33.0

News Analysis

IIP comes in at 2.4% yoy for May


L&T inaugurates switchgear facility at Vadodara
1QFY2013 Result Reviews- TCS, Infosys
1QFY2013 Result Previews- HDFC Bank

` cr

Purch

Sales

Net

MTD

YTD

FII

2,460

2,209

251

3,148

49,142

386

560

(174)

(1459)

(7,304)

FII Derivatives (July 12, 2012)


Index Futures

Purch
1,502

Sales
1,917

Net
(416)

Open Interest
14,634

Stock Futures

1,131

1,610

(480)

26,101

Gainers / Losers
Gainers
Company
United Spirits
Indiabulls Real Est
Unitech

Price (`)

Losers

chg (%)

Company

766

6.1

Infosys

64

4.1

Hexaware Tech

Price (`)

chg (%)

2,265

(8.2)

115

(4.5)

25

4.1

India Infoline

58

(4.3)

Godrej Inds

251

4.0

Ashok Leyland

25

(4.3)

HPCL

354

3.1

Rajesh Exports

133

(4.3)

www.angelbroking.com

BSE

NSE

Advances

1,133

439

Declines

1,679

985

105

81

Unchanged

Net Inflows (July 11, 2012)

` cr

Indian ADRs

Advances / Declines

Refer detailed news analysis on the following page

MFs

Shanghai Com

Volumes (` cr)
BSE

2,189

NSE

10,325

Market Outlook
July 13, 2012

IIP comes in at 2.4% yoy for May


Industrial production (IIP) growth came in positive at 2.4% yoy, ahead of estimates
of 1.8% yoy, after two months of negative growth (April growth revised downwards
from 0.1% yoy to -0.9% yoy). The 12-month rolling industrial production growth,
which has been on a declining trend since November 2010 (9.9%), slipped further
to 2.1% yoy.
Manufacturing index, which has witnessed continued sluggish growth over the past
year, grew in-line with the overall IIP at 2.5% yoy in May. Only 12 out of 22
industry groups in the manufacturing sector registered above zero growth during
May 2012. Mining activity contracted by 0.9% during May. In fact, in the last 12
months, mining index has been continually contracting since August 2011, apart
from 2.7% yoy growth registered in February 2012. Growth in electricity
production was relatively healthy at 5.9% yoy.
As per use-based data, apart from capital goods index, which disappointed once
again with a contraction of 7.7% yoy, and consumer non durables index, which
was flat yoy, all other indexes managed to report moderate growth figures.

Industrial production breakdown (%, yoy)


Month

IIP

Mfg

Mining

Elec.

Basic Gds Cap Good Interm. Gds

Cons. Gds Cons. Dur. Cons. Non-dur.

May-11

6.2

6.3

1.8

10.3

7.5

6.2

0.1

7.2

5.1

9.0

Jun-11

9.5

11.2

(1.4)

7.9

7.8

38.7

1.6

3.1

1.6

4.4

Jul-11

3.7

3.1

0.6

13.1

10.0

(13.7)

(0.1)

6.4

9.0

4.1

Aug-11

3.4

4.1

(5.5)

9.5

5.8

4.0

(1.0)

2.1

5.5

(0.7)

Sep-11

2.5

3.1

(7.5)

9.0

5.3

(6.5)

(1.4)

5.7

8.9

2.7

Oct-11

(5.0)

(6.0)

(5.9)

5.6

1.2

(26.5)

(8.4)

0.1

(0.4)

0.5

Nov-11

6.0

6.6

(3.5)

14.6

6.5

(4.7)

1.3

12.8

10.4

15.0

Dec-11

2.7

2.8

(3.3)

9.1

5.5

(16.0)

18.2

10.1

5.1

13.8

Jan-12

1.1

1.4

(2.4)

3.2

1.8

(1.7)

(2.8)

2.9

(7.1)

11.0

Feb-12

4.1

3.9

2.7

8.0

7.7

10.2

(0.2)

(0.3)

(6.1)

4.5

Mar-12

(3.2)

(4.0)

(1.3)

2.7

0.9

(20.3)

(1.7)

1.2

1.0

1.2

Apr-12

(0.9)

(1.2)

(3.2)

4.6

2.1

(19.6)

(1.6)

3.7

5.2

2.5

May-12

2.4

2.5

(0.9)

5.9

4.1

(7.7)

2.7

4.3

9.3

0.1

Source: MOSPI, Angel Research

L&T inaugurates switchgear facility at Vadodara


Larsen & Toubro's (L&T) inaugurated its manufacturing facility for switchgear
products at Vadodara, a capacity expansion initiative for its Electrical &
Automation (E&A) wing. The E&A wing, one of the market leaders in low voltage
switchgear in the country, will manufacture air circuit breakers (ACBs) and
moulded case circuit breakers (MCCBs) at this facility. This facility will enable L&T
to elevate switchgear manufacturing technology to the next level, and advance
further in their goal to upgrade manufacturing capabilities in India. Further, smart
mix of labour and automation deployed there would enhance productivity by 2.5
times. The lines are equipped to produce circuit breakers of different frames and
several ratings from 16A to 6300A.

www.angelbroking.com

Market Outlook
July 13, 2012

At the CMP of `1,410, the stock is trading at PE of 14.1x 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. Owing to the recent surge in stock price we recommend
Accumulate on the stock.

Result Reviews
TCS (CMP: `1,236 / TP: - / Upside: -)
TCS reported yet another healthy quarterly result. The most remarkable thing was
5.3% qoq volume growth. The dollar revenue grew by 3.0% qoq to US$2,728mn.
The EBIT margin of the company declined by 20bp qoq to 27.6%, the negative
impact of wage hike got absorbed by benefits from INR depreciation. Bottomline
of company grew by ~12% qoq to `3,280crdue to lower than expected forex loss
(~`94cr).
TCS, like Infosys, also said that unprecedented currency volatility continued to be a
challenge in the short-term, but it continues to see good demand from global
companies. Among key deal wins included a US$100mn contract with a leading
North American retailer, a multi-million dollar managed services contract by a
North American communications solutions provider and a multi-year contract from
an Australian financial institution. Overall the results were encouraging with
management commentary indicating that the company would be able to grow
higher than industry. We are Neutral on TCS as valuations preclude us from taking
a more favorable view in terms of good absolute upsides. Still, that said, TCS
remains the best relative play in near term and will act as defensive for investors.
Y/E

Sales

OPM

PAT

EPS

ROE

P/E

P/BV

EV/EBITDA

EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

(x)

(x)

(x)

FY2013E

60,787

30.1

12,814

65.5

31.3

18.9

5.9

12.5

3.8

FY2014E

68,558

29.2

14,412

73.6

28.2

16.8

4.7

11.2

3.3

Infosys (CMP: `2,265 / TP: `2,530 / Upside: 12%)


For 1QFY2013, Infosys reported yet another disappointing quarterly result,
broadly disappointing on all fronts. The dollar revenues declined by 1.1% qoq to
US$1,752mn, impacted due to 3.7% qoq decline in pricing. The cross currency
movement also impacted the companys revenue by US$13mn. In addition, the
company took a hit of US$15mn as a one-time reversal in a transformation
project from a European utilities client. In the constant currency terms also, the
company has not been able to meet its dollar revenue guidance of 0-1% qoq
growth. Revenue in constant currency (CC) terms came in at US$1,763mn, down
0.4% qoq. One key positive thing was that the companys volumes grew by 2.7%
qoq led by 2.9% offshore volume growth and 2.3% onsite volume growth. In INR
terms, revenue came in at `9,616cr, up 8.6% qoq, aided by ~8% qoq INR
depreciation against the USD in 1QFY2013.

www.angelbroking.com

Market Outlook
July 13, 2012

The companys EBITDA and EBIT margin declined by 181bp and 190bp qoq to
30.8% and 28.0%, respectively, despite having considerable benefits from ~8%
qoq INR depreciation against USD. Operating margins of the company were
impacted adversely by ~3.7% qoq decline in revenue productivity and US$15mn
of revenue reversal on account of a project cancellation. Management indicated
that they expect EBIT margin to go down by 50-100bp in FY2013 which does not
factor any wage hike.
The most disappointing thing in Infosys result was revision of FY2013 USD revenue
growth guidance downwards to at least 5% from 8-10% earlier, tad lower than our
estimate of 6-8% taking into account: a) 1.5% impact due to adverse cross
currency movement, b) 3.2% impact due to price decline and c) rest due to impact
on overall demand scenario. The management has stopped issuing quarterly
guidance citing uncertainly in demand environment which is discomforting. We
believe this clearly indicates challenging visibility in business volumes and
managements future expectation. Post 1.1% decline in USD revenue in
1QFY2012, the company requires ~3% ask rate in 2Q-4QFY2013 to achieve 5%
growth in FY2013, which at current scenario looks a bit stretched.
At the CMP of `2,265, the stock is trading at 14.0x FY2013E and 13.0x FY2014E
EPS. We value the company at 14.5x FY2014E of `174.5 which is significant
discounts to its peak valuations as well as to Sensex. We maintain Accumulate
rating on the stock with a target price of `2,530 but in the near term though we do
not expect Infosys to give considerable absolute upsides.
Y/E

Sales

OPM

PAT

EPS

ROE

P/E

P/BV

EV/EBITDA

EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

(x)

(x)

(x)

FY2013E

39,151

31.6

9,247

161.9

23.8

14.0

3.3

8.6

2.7

FY2014E

41,743

31.9

9,966

174.5

22.1

13.0

2.9

7.6

2.4

Result Previews
HDFC Bank (CMP: `580 / TP: - / Upside :-)
HDFC Bank is expected to announce another healthy set of results for 1QFY2013.
We expect the bank to report healthy NII growth of 22.1% yoy to `3,476cr. Noninterest income is expected to register growth of 28.6% yoy to `1,440cr, leading to
operating income growth of 23.9% yoy. Due to a relatively high increase in
operating expenses (expected to increase by 30.7% yoy), pre-provision profit is
expected to grow by relatively low 17.4% yoy. Provisioning expenses are expected
to decline by 33.4% yoy to `296cr, leading to healthy net profit growth of 30.2%
yoy to `1,413cr. At the CMP, the stock is trading at valuations of 3.3x FY2014E
P/ABV. We recommend a Neutral rating on the stock.

Y/E
March

www.angelbroking.com

Op. Inc
(` cr)

NIM
(%)

PAT
(` cr)

EPS
(`)

ABV
(%)

ROA
(x)

ROE
(x)

P/E
(x)

P/ABV
(x)

FY2013E

22,076

4.3

6,722

28.6

149.5

1.8

20.7

20.2

3.9

FY2014E

27,921

4.4

8,394

35.8

176.1

1.7

21.9

16.2

3.3

Market Outlook
July 13, 2012

Quarterly Bloomberg Brokers Consensus Estimate


HDFC Bank - (13/07/2012)
Particulars (` cr)
Net profit

1Q FY13E

1Q FY12

y-o-y (%)

4Q FY12

q-o-q (%)

1,422

1,085

31

1,751

(19)

Exide Industries Ltd - (16/07/2012)


Particulars (` cr)

1Q FY12E

1Q FY12

Net sales

y-o-y (%)

4Q FY12

q-o-q (%)

1,428

1,244

15

1,446

(1)

EBITDA

221

222

(1)

213

EBITDA margin (%)

15.5

17.9

Net profit

154

163

14.7
(6)

143

Axis Bank Ltd - (17/07/2012)


Particulars (` cr)
Net profit

1Q FY13E

1Q FY12

y-o-y (%)

4Q FY12

q-o-q (%)

1,140

1,118

1,277

(11)

Economic and Political News

Cabinet defers 11% stake sale in SAIL


Monitoring mechanism to be set up for PPP projects
Cabinet defers Forward Contract Bill
Cabinet approves a `10,000cr aid for electronics sector

Corporate News

Infosys will hire 35,000 people, but may not hike salary
BPCL, Videocon find oil off Brazil Coast
Vodafone to acquire NZ's TelstraClear for `3,700cr
Bosch suspends production at its Bangalore plant for two days
Greaves Cotton inks pact with Atul Auto

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

www.angelbroking.com

Market Outlook
July 13, 2012

Result Calendar
Date

Company

July 13, 2012

HDFC Bank, Sintex

July 14, 2012


July 15, 2012
July 16, 2012

Exide Industries, South Ind.Bank, Mindtree

July 17, 2012

Axis Bank

July 18, 2012

Bajaj Auto, CRISIL, Infotech Enterprises

July 19, 2012

Hero Motocorp, Kotak Mah. Bank, Dr Reddy's, Persistent, Tata Sponge

July 20, 2012

Hind. Zinc, UltraTech Cement, Asian Paints, Zee Entertainment, Crompton Greaves, United Phosphorus, HT Media

July 21, 2012


July 22, 2012
July 23, 2012

Larsen & Toubro, HUL, Idea Cellular, Dabur India, Colgate, Tata Global

July 24, 2012

Wipro, Lupin, LIC Housing Fin., Ashok Leyland, Page Industries

July 25, 2012

Power Grid Corpn, Aventis, Madras Cements, GIPCL

July 26, 2012

BHEL, Ambuja Cements, Gujarat Gas, Thermax, D B Corp, Bajaj Electrical

July 27, 2012

ICICI Bank, Central Bank, CESC

July 28, 2012

Maruti, Vesuvius India

Source: Bloomberg, Angel Research

Global economic events release calendar


Date

July 13, 2012

July 16, 2012

July 17, 2012

July 18, 2012

Country

Event Description

Unit

Period

Bloomberg Data
Last Reported

Estimated

US

Producer Price Index (mom)

% Change

Jun

(1.00)

(0.40)

China

Industrial Production (YoY)

% Change

Jun

9.60

9.80

China

% Change

2Q

8.10

7.70

% Change

Jun

7.55

7.61

Euro Zone

Real GDP (YoY)


Monthly Wholesale Prices
YoY%
Euro-Zone CPI (YoY)

Jun

2.40

--

UK

CPI (YoY)

% Change

Jun

2.80

--

US

Industrial Production

Jun

(0.09)

0.40

US

Consumer price index (mom)

% Change

Jun

(0.30)

--

US

Housing Starts

Thousands

Jun

708.00

743.00

US

Building permits

Thousands

Jun

784.00

773.00

India

UK

Jobless claims change

% Change

Jun

8.10

--

July 19, 2012

US

Millions

Jun

4.55

4.64

July 23, 2012

Euro Zone

Value

Jul A

(19.80)

--

July 24, 2012

Germany

Existing home sales


Euro-Zone Consumer
Confidence
PMI Services

Value

Jul A

49.90

--

Germany

PMI Manufacturing

Value

Jul A

45.00

--

UK

GDP (YoY)

% Change

2Q A

(0.20)

--

July 25, 2012

US

New home sales

Thousands

Jun

369.00

--

July 27, 2012

US

GDP Qoq (Annualised)

2Q A

1.90

--

July 31, 2012

US

Consumer Confidence

% Change
S.A./
1985=100

Jul

62.00

--

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Strategy
July 13, 2012

Macro watch
Exhibit 1: Quarterly GDP trends

(%)

8.0
6.7

5.9

6.0

5.3

4.3

3.4

2.7

2.5

2.4
1.0

Source: CSO, Angel Research

(6.0)

9.8

10.0

Jan-12

Dec-11

Mfg. PMI

60.0
9.4

Nov-11

(5.0)

Exhibit 4: Manufacturing and services PMI

(%)
9.5

(0.9)

(3.2)

Source: MOSPI, Angel Research

Exhibit 3: Monthly WPI inflation trends


12.0

Oct-11

Sep-11

Aug-11

(4.0)

Jul-11

Jun-11

4QFY12

3QFY12

2QFY12

1QFY12

4QFY11

3QFY11

2QFY11

1QFY11

4QFY10

3QFY10

2QFY10

(2.0)

1QFY10

3.0

4QFY09

4.0

9.9

Services PMI

58.0

9.5
7.7

8.0

6.9

7.4

7.7

7.2

7.6

56.0

Source: MOSPI, Angel Research

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

Apr-12

Mar-12

Feb-12

Jan-12

Dec-11

Nov-11

Oct-11

Jun-12

May-12

Apr-12

CRR

Mar-12

Feb-12

Jan-12

Dec-11

Nov-11

Reverse Repo rate

Oct-11

Sep-11

Repo rate

Jun-11

4.00

May-12

0.0

Apr-12

5.00

Mar-12

15.0

Feb-12

6.00

Jan-12

30.0

Dec-11

7.00

Nov-11

45.0

Oct-11

8.00

Sep-11

60.0

Aug-11

(%)
9.00

Jul-11

75.0

Jun-11

Sep-11

Exhibit 6: Key policy rates

Imports yoy growth

Aug-11

Exports yoy growth

www.angelbroking.com

Jul-11

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

Exhibit 5: Exports and imports growth trends


(%)

Jun-11

May-12

Apr-12

Mar-12

Feb-12

Jan-12

Dec-11

Nov-11

48.0

Oct-11

0.0

Sep-11

50.0

Aug-11

2.0

Jul-11

52.0

Jun-11

4.0

Aug-11

54.0

6.0

(15.0)

3.7

4.0
2.0

5.0

10.0

6.0

6.0

6.1

May-12

7.6

7.4

Jul-11

7.0

9.5

10.0

8.0

Jun-12

7.5

8.0

8.2

Apr-12

8.5

9.0

12.0

9.2

May-12

9.4

Mar-12

9.8

Feb-12

(%)
10.0

Exhibit 2: IIP trends

Market Outlook
July 13, 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

132

2,574

1,432

1,647

14.7

14.7

7.0

8.0

18.9

16.5

4.0

3.4

22.8

22.3

1.8

1.5

United Phosphorus

Buy

120

183

5,550

8,191

8,764

16.5

16.5

17.1

18.3

7.0

6.6

1.2

1.0

17.5

16.2

0.8

0.7

Amara Raja Batteries

Accumulate

306

345

2,615

2,715

3,041

15.3

15.3

29.2

32.8

10.5

9.3

2.4

2.0

26.0

23.3

0.9

0.8

Apollo Tyres

Buy

83

100

4,201

13,699

15,184

10.5

10.2

12.1

13.3

6.9

6.3

1.3

1.1

19.7

18.4

0.5

0.4

Ashok Leyland

Buy

25

33

6,585

14,798

16,687

9.6

9.6

2.4

3.0

10.2

8.3

2.0

1.8

14.8

16.5

0.5

0.4

Automotive Axle

Buy

438

514

661

1,211

1,387

12.1

11.7

50.3

57.1

8.7

7.7

2.2

1.8

27.8

25.7

0.6

0.5

Bajaj Auto

Buy

1,492

1,787

43,159

21,665

24,334

18.6

18.4

111.7

123.2

13.4

12.1

5.2

4.2

43.8

38.5

1.6

1.3

Bharat Forge

Buy

303

372

7,049

7,173

7,998

16.3

16.5

22.3

26.6

13.6

11.4

2.6

2.2

21.0

21.0

1.1

0.9

Bosch India

Neutral

8,821

27,698

9,106

10,255

19.4

19.3

410.2

460.3

21.5

19.2

4.8

3.9

22.1

20.4

2.7

2.3

CEAT

Buy

99

164

340

5,067

5,631

8.0

7.6

39.4

41.0

2.5

2.4

0.4

0.4

18.8

16.5

0.3

0.3

Exide Industries

Accumulate

139

146

11,802

5,787

6,595

15.5

17.0

7.1

9.0

19.5

15.5

3.4

2.9

18.6

20.3

1.7

1.4

FAG Bearings

Neutral

1,491

2,478

1,492

1,703

18.8

18.5

115.3

129.8

12.9

11.5

2.8

2.3

23.5

21.6

1.4

1.1

Hero Motocorp

Buy

2,059

2,473

41,107

25,970

29,772

15.0

15.5

139.7

154.5

14.7

13.3

6.9

5.3

54.7

44.9

1.2

1.0

JK Tyre

Buy

97

135

400

7,950

8,904

5.5

6.0

25.1

38.6

3.9

2.5

0.5

0.4

12.1

16.4

0.3

0.3

Auto & Auto Ancillary

Mahindra and Mahindra Accumulate


Maruti

Accumulate

Motherson Sumi

Buy

Subros

Neutral

Tata Motors

Buy

TVS Motor

Neutral

718

824

44,059

35,881

40,746

10.0

10.0

47.5

53.2

15.1

13.5

3.0

2.6

21.3

20.5

1.0

0.8

1,195

1,364

34,523

39,959

46,670

6.0

7.0

71.4

90.9

16.8

13.1

2.0

1.8

12.8

14.4

0.7

0.6

170

216

6,655

23,342

26,366

7.8

8.2

13.3

18.0

12.8

9.4

3.1

2.4

26.2

28.4

0.5

0.4

35

207

1,244

1,402

8.4

8.3

4.5

5.1

7.7

6.8

0.8

0.7

9.9

11.0

0.4

0.4

237

305

63,070 191,303 211,004

13.0

12.9

40.7

43.8

5.8

5.4

2.0

1.7

36.0

33.1

0.4

0.4

41

1,934

7,442

8,198

6.2

6.1

4.8

5.2

8.6

7.8

1.5

1.3

18.2

17.9

0.2

0.2

Capital Goods
ABB*

Sell

784

498

16,613

8,760

10,023

7.6

7.5

18.2

20.7

43.0

37.8

5.8

5.2

14.4

14.6

1.9

1.6

BGR Energy

Neutral

306

2,206

4,195

4,837

11.0

11.0

30.1

32.4

10.2

9.5

1.8

1.6

18.4

17.6

1.1

1.0

BHEL

Neutral

231

56,576

46,344

46,916

18.3

18.6

23.5

24.1

9.8

9.6

2.0

1.7

21.3

18.9

1.1

1.1

Blue Star

Neutral

184

1,652

3,047

3,328

5.4

6.9

9.6

16.2

19.1

11.3

3.8

3.0

20.7

29.7

0.6

0.5

Crompton Greaves

Accumulate

130

142

8,317

12,451

14,265

7.9

8.3

8.0

9.5

16.2

13.7

2.2

1.9

13.9

14.9

0.7

0.6

Jyoti Structures

Buy

43

67

352

2,622

2,801

10.6

11.0

10.9

13.4

3.9

3.2

0.5

0.4

13.7

14.9

0.3

0.3

KEC International

Buy

57

73

1,468

6,686

7,200

8.5

8.8

10.6

12.2

5.4

4.7

1.0

0.9

25.9

24.0

0.4

0.4

LMW

Buy

1,649

1,992

1,858

2,369

2,727

11.7

11.7

143.4

166.0

11.5

9.9

1.9

1.8

17.4

18.4

0.3

0.2

Thermax

Neutral

496

5,908

5,514

5,559

9.8

9.6

29.7

28.4

16.7

17.5

3.2

2.8

20.2

16.9

1.0

0.9

www.angelbroking.com

Market Outlook
July 13, 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

1,263

23,713

11,096

12,607

21.0

21.7

76.1

82.9

16.6

15.2

3.1

2.8

19.3

19.3

1.9

1.6

Ambuja Cements

Neutral

169

26,010

10,205

11,659

24.6

24.2

10.8

12.0

15.6

14.1

3.3

2.9

19.7

19.8

2.2

1.8

India Cements

Neutral

82

2,527

4,364

4,791

18.9

19.1

9.2

11.4

8.9

7.2

0.7

0.7

8.0

9.5

0.5

0.5

J K Lakshmi Cements

Neutral

79

972

1,938

2,246

19.1

20.1

15.2

16.8

5.2

4.7

0.7

0.6

13.8

14.0

0.6

1.0

Madras Cements

Neutral

155

3,686

3,444

3,786

25.5

24.9

14.6

17.1

10.6

9.1

1.6

1.4

15.6

16.0

1.7

1.4

Shree Cements

Neutral

2,885

10,050

5,519

6,293

24.5

23.7

156.6

225.3

18.4

12.8

4.6

3.9

22.3

26.0

1.5

1.2

UltraTech Cement

Neutral

1,574

43,152

20,099

22,642

21.7

22.9

89.6

104.7

17.6

15.0

2.9

2.5

17.7

17.9

2.0

1.9

217

273

1,144

2,014

2,293

22.4

22.4

22.6

26.7

9.6

8.1

1.0

0.9

11.4

11.9

2.4

2.7

Construction
Ashoka Buildcon

Buy

Consolidated Co

Neutral

16

293

2,489

2,755

7.0

7.8

3.0

4.0

5.3

4.0

0.5

0.4

8.7

10.8

0.3

0.3

Hind. Const.

Neutral

20

1,219

4,239

4,522

11.1

11.8

(1.8)

(0.8)

(11.2)

(25.8)

1.2

1.3

(9.5)

(4.7)

1.3

1.2

IRB Infra

Buy

134

166

4,469

3,821

4,582

42.3

40.2

15.0

16.9

9.0

7.9

1.4

1.2

16.1

15.8

2.8

2.6

ITNL

Buy

184

265

3,576

6,619

7,925

23.8

23.3

22.9

27.8

8.0

6.6

1.2

1.0

15.5

16.4

2.2

2.1

IVRCL Infra

Buy

49

61

1,318

5,510

6,722

8.8

9.0

2.5

4.6

19.5

10.8

0.7

0.6

3.4

5.8

0.7

0.7

Jaiprakash Asso.

Accumulate

79

88

16,693

15,259

17,502

25.7

24.7

4.2

5.0

18.5

15.7

1.5

1.4

8.5

9.3

2.4

2.1

Larsen & Toubro

Accumulate

1,410

1,553

86,384

59,559

69,089

12.1

11.5

78.4

85.2

18.0

16.6

3.0

2.6

16.1

15.3

1.6

1.4

Madhucon Proj

Buy

37

56

273

2,206

2,502

10.7

10.7

4.6

4.7

8.0

7.9

0.4

0.4

5.2

5.0

0.7

0.7

Nagarjuna Const.

Neutral

42

1,088

5,453

6,169

8.1

8.5

1.6

1.9

25.8

22.0

0.5

0.5

1.8

2.1

0.6

0.7

Patel Engg.

Neutral

98

687

3,609

3,836

13.1

13.1

14.0

14.6

7.0

6.8

0.4

0.4

6.3

6.1

1.0

1.1

Punj Lloyd

Neutral

58

1,933

11,592

12,993

8.4

8.4

1.8

3.2

32.3

18.2

0.6

0.6

2.0

3.4

0.6

0.6

Sadbhav Engg.

Buy

144

182

2,162

2,789

3,147

10.6

10.7

8.4

10.4

17.0

13.8

2.3

2.0

15.0

15.6

0.9

0.9

Simplex Infra

Buy

225

265

1,111

6,732

7,837

8.1

8.4

23.5

29.4

9.5

7.6

0.9

0.8

9.6

11.0

0.5

0.5

Allahabad Bank

Accumulate

144

153

7,210

7,467

8,685

3.2

3.3

37.5

41.5

3.9

3.5

0.7

0.6

18.1

17.4

Andhra Bank

Reduce

115

107

6,421

5,225

6,024

3.3

3.3

22.7

25.4

5.1

4.5

0.8

0.7

16.0

15.8

Axis Bank

Buy

1,047

1,489

43,378

16,488

20,297

3.2

3.3

118.4

145.2

8.9

7.2

1.7

1.4

20.3

21.1

Bank of Baroda

Buy

722

921

28,276

16,157

19,475

2.7

2.7

123.7

148.3

5.8

4.9

1.0

0.8

17.3

18.1

Bank of India

Accumulate

341

388

19,552

13,657

15,902

2.5

2.6

59.5

70.6

5.7

4.8

0.9

0.8

16.2

16.9

Bank of Maharashtra

Accumulate

Canara Bank

Buy

Central Bank

Reduce

Financials

www.angelbroking.com

49

52

2,910

3,506

3,925

3.2

3.2

10.2

11.9

4.8

4.2

0.7

0.6

15.3

15.8

427

492

18,894

12,296

14,445

2.4

2.5

81.5

92.2

5.2

4.6

0.8

0.7

16.4

16.3

80

72

5,915

7,001

8,211

2.5

2.6

14.0

20.6

5.7

3.9

0.9

0.8

11.0

14.5

Market Outlook
July 13, 2012

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

Sales ( cr )

OPM(%)

EPS ( )

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

( )

Price ( )

( cr )

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

Financials
Corporation Bank

Accumulate

425

465

6,297

5,294

6,070

2.3

2.3

106.3

110.1

4.0

3.9

0.7

0.6

17.7

16.2

Dena Bank

Accumulate

101

106

3,525

3,170

3,577

2.9

2.9

22.8

25.3

4.4

4.0

0.7

0.6

17.2

16.6

Federal Bank

Neutral

440

7,523

2,736

3,165

3.4

3.4

49.3

57.4

8.9

7.7

1.2

1.1

13.9

14.5

HDFC

Neutral

674

100,443

7,372

8,812

3.6

3.5

31.5

37.7

21.4

17.9

4.3

3.8

34.8

32.1

HDFC Bank

Neutral

580

136,608

22,076

27,921

4.3

4.4

28.7

35.8

20.2

16.2

3.9

3.3

20.7

21.9

ICICI Bank

Buy

928

1,169

106,663

22,368

26,857

2.8

2.9

68.2

80.4

13.6

11.6

1.6

1.5

14.2

15.4

IDBI Bank

Buy

Indian Bank

Neutral

IOB

96

113

12,215

8,152

9,907

1.9

2.1

19.7

24.1

4.9

4.0

0.6

0.6

13.6

15.0

186

7,983

6,417

7,292

3.5

3.5

40.2

43.1

4.6

4.3

0.8

0.7

17.9

16.9

Accumulate

84

91

6,663

7,578

8,662

2.6

2.7

17.2

22.5

4.9

3.7

0.6

0.5

12.1

14.3

J & K Bank

Accumulate

928

979

4,497

2,525

2,858

3.5

3.5

175.8

183.1

5.3

5.1

1.0

0.8

19.3

17.5

LIC Housing Finance

Accumulate

269

286

13,593

2,108

2,607

2.6

2.6

24.5

30.6

11.0

8.8

2.1

1.7

20.1

21.4

Oriental Bank

Accumulate

255

269

7,449

6,497

7,533

2.8

2.8

53.4

63.9

4.8

4.0

0.7

0.6

13.3

14.3

Punjab Natl.Bank

Buy

844

1,050

28,637

20,142

23,929

3.2

3.3

153.3

174.3

5.5

4.9

1.0

0.8

18.3

18.0

South Ind.Bank

Neutral

24

2,775

1,447

1,664

2.8

2.7

3.8

4.1

6.5

6.0

1.2

1.1

19.5

18.2

St Bk of India

Accumulate

2,217

2,443

148,761

67,783

78,208

3.7

3.6

226.0

264.2

9.8

8.4

1.6

1.4

17.7

18.1

Syndicate Bank

Accumulate

104

118

6,266

7,176

8,299

3.1

3.1

25.1

29.1

4.1

3.6

0.7

0.6

17.6

17.8

UCO Bank

Reduce

79

71

5,241

5,642

6,438

2.5

2.5

16.4

17.6

4.8

4.5

0.9

0.8

16.2

15.4

Union Bank

Buy

212

256

11,691

10,623

12,404

3.0

3.0

42.5

49.6

5.0

4.3

0.8

0.7

16.9

17.2

United Bank

Buy

61

78

2,204

3,599

4,212

2.8

3.0

18.2

22.3

3.4

2.7

0.5

0.4

15.0

16.2

Vijaya Bank

Reduce

58

52

2,887

2,695

3,097

2.2

2.3

9.6

12.0

6.1

4.9

0.8

0.7

12.0

13.6

Yes Bank

Buy

353

454

12,509

3,250

4,261

2.8

2.9

34.1

42.8

10.4

8.3

2.2

1.8

23.2

23.9

3,722

35,704

11,423

13,309

16.3

16.3

125.3

148.4

29.7

25.1

10.1

7.9

38.0

35.4

3.0

2.6

524

633

6,263

5,835

6,824

6.3

6.7

20.7

27.5

25.3

19.1

9.9

7.4

42.7

44.3

1.1

0.9

1,128

15,343

3,007

3,417

21.1

22.1

38.2

43.8

29.5

25.8

35.1

27.6

130.2

119.9

5.0

4.4

FMCG
Asian Paints

Neutral

Britannia

Buy

Colgate

Neutral

Dabur India

Neutral

116

20,130

5,878

6,799

16.8

17.0

4.2

4.9

27.9

23.5

10.1

8.3

39.3

42.0

3.4

3.0

GlaxoSmith Con*

Neutral

2,622

11,028

3,124

3,663

17.1

17.6

103.0

123.3

25.5

21.3

7.9

6.3

34.0

32.9

3.2

2.7

Godrej Consumer

Neutral

579

19,710

5,973

7,000

18.4

18.6

22.8

27.2

25.4

21.3

7.0

5.6

31.3

38.4

3.5

2.9

HUL

Neutral

443

95,735

25,350

29,309

14.3

14.4

14.1

16.4

31.3

27.0

23.5

18.3

82.7

76.2

3.6

3.1

ITC

Neutral

252

196,942

29,588

34,063

35.4

35.8

9.3

10.9

27.0

23.2

8.7

7.1

35.2

33.8

6.4

5.5

www.angelbroking.com

Market Outlook
July 13, 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

183

11,775

4,667

5,427

12.8

12.9

6.6

8.1

27.5

22.5

7.4

5.8

30.0

28.8

2.6

2.1

Nestle*

Neutral

4,500

43,389

8,731

10,539

21.0

21.4

114.4

143.0

39.3

31.5

23.7

16.3

71.1

61.4

5.0

4.1

Tata Global

Buy

115

136

7,136

7,011

7,711

9.7

10.0

6.3

7.5

18.4

15.4

1.8

1.7

9.5

10.9

0.9

0.8

HCL Tech

Buy

482

562

33,382

24,029

26,633

18.3

17.2

39.6

43.2

12.2

11.2

2.8

2.3

22.9

21.0

1.4

1.2

Hexaware

Accumulate

115

132

3,415

1,921

2,178

20.6

20.0

10.4

11.4

11.1

10.1

2.7

2.3

24.7

23.4

1.5

1.3

Infosys

Buy

2,265

2,747

130,078

39,364

42,981

32.2

30.5

161.6

171.7

14.0

13.2

3.2

2.7

22.9

20.5

2.7

2.3

Infotech Enterprises

Neutral

183

2,034

1,825

2,008

17.5

17.1

16.9

18.7

10.8

9.8

1.5

1.3

13.7

13.3

0.8

0.6

KPIT Cummins

Neutral

114

2,033

2,145

2,316

16.0

14.8

9.9

11.3

11.5

10.1

2.3

1.8

20.8

19.1

0.9

0.8

Mahindra Satyam

Accumulate

80

87

9,456

7,492

8,038

17.0

16.3

8.1

8.3

9.9

9.6

1.4

1.2

14.1

12.6

0.9

0.7

Mindtree

Accumulate

637

710

2,593

2,324

2,533

18.3

16.9

62.4

64.5

10.2

9.9

2.2

1.8

21.2

18.0

0.9

0.8

Mphasis

Neutral

382

8,030

5,704

6,009

18.6

17.7

36.0

37.1

10.6

10.3

1.5

1.3

14.0

12.6

0.9

0.8

NIIT

Buy

43

52

702

1,162

1,304

14.8

15.1

7.1

8.8

6.0

4.8

1.0

0.9

16.7

18.4

0.4

0.3

Persistent

Neutral

390

1,561

1,187

1,274

26.7

26.0

34.5

42.6

11.3

9.2

1.6

1.4

14.4

15.4

1.0

0.9

TCS

Neutral

1,236

241,932

60,787

68,558

30.1

29.2

65.5

73.6

18.9

16.8

5.9

4.7

31.3

28.2

3.8

3.3

Tech Mahindra

Neutral

710

9,055

6,282

6,477

17.5

16.5

82.9

85.0

8.6

8.4

1.9

1.5

21.6

18.4

1.4

1.3

Wipro

Buy

359

451

88,401

44,597

49,033

20.3

20.5

26.6

30.1

13.5

12.0

2.6

2.3

19.5

18.9

1.6

1.4

D B Corp

Buy

199

269

3,645

1,638

1,851

25.8

26.6

13.5

16.1

14.7

12.3

3.3

2.8

23.9

24.2

2.1

1.8

HT Media

Buy

97

148

2,289

2,224

2,509

16.6

17.2

8.6

10.8

11.4

9.0

1.4

1.2

12.9

14.3

0.6

0.5

Jagran Prakashan

Buy

85

125

2,685

1,521

1,698

22.6

23.1

6.2

6.4

13.8

13.2

3.4

2.9

20.7

23.9

2.0

1.8

PVR

Neutral

169

439

625

732

16.5

15.7

11.9

13.3

14.2

12.8

1.4

1.3

11.9

12.0

1.1

0.9

Sun TV Network

Neutral

301

11,874

2,002

2,296

77.1

76.7

18.9

22.1

16.0

13.7

4.1

3.5

27.7

28.3

5.4

4.5

Bhushan Steel

Reduce

473

429

10,042

11,408

13,773

31.0

30.0

53.7

60.8

8.8

7.8

1.3

1.1

15.3

14.9

2.6

2.2

Coal India

Neutral

355

224,041

68,841

74,509

25.3

25.3

24.1

26.1

14.7

13.6

4.0

3.3

30.4

26.8

2.4

2.0

Electrosteel Castings

Accumulate

20

22

697

1,984

2,074

11.2

12.6

2.0

2.7

9.9

7.5

0.4

0.2

4.2

5.5

0.5

0.5

Hind. Zinc

Buy

119

141

50,070

13,050

14,585

51.4

52.1

14.5

16.5

8.2

7.2

1.6

1.3

20.8

19.9

2.0

1.4

Hindalco

Neutral

123

23,558

83,212

91,057

9.0

9.9

13.7

18.1

9.0

6.8

0.7

0.6

7.9

9.6

0.5

0.5

JSW Steel

Neutral

701

15,633

39,592

44,910

18.0

17.7

74.7

88.9

9.4

7.9

0.9

0.8

10.7

11.6

0.8

0.7

MOIL

Accumulate

280

296

4,707

1,007

1,091

56.6

56.9

29.4

31.9

9.5

8.8

1.7

1.5

19.0

18.2

2.5

2.0

Monnet Ispat

Buy

387

447

2,488

3,115

3,748

22.1

25.1

59.1

66.8

6.5

5.8

0.9

0.8

15.6

15.3

1.5

1.1

IT

Media

Metals & Mining

www.angelbroking.com

Market Outlook
July 13, 2012

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

( )

Price ( )

( cr )

Sales ( cr )
FY13E

OPM(%)

FY14E

FY13E

FY14E

EPS ( )
FY13E

PER(x)

P/BV(x)

RoE(%)

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

EV/Sales(x)

FY14E

FY13E

FY14E

Metals & Mining


Nalco

Reduce

58

54

15,025

8,474

9,024

12.6

16.2

2.6

3.6

22.8

16.3

1.3

1.2

5.6

7.5

1.3

1.3

NMDC

Neutral

188

74,537

11,959

13,062

78.2

78.6

19.1

20.9

9.9

9.0

2.4

2.0

27.1

24.4

4.1

3.6

SAIL

Neutral

93

38,207

50,914

60,785

14.6

15.1

9.4

10.5

9.9

8.8

0.9

0.8

9.2

9.6

1.2

1.1

Sesa Goa

Neutral

193

16,761

9,067

9,316

35.7

35.5

44.5

44.3

4.3

4.4

0.9

0.8

23.5

19.5

0.4

0.1

Sterlite Inds

Buy

105

123

35,219

45,294

48,059

25.7

25.3

16.5

18.0

6.4

5.8

0.7

0.6

12.0

11.2

0.5

0.3

Tata Steel

Buy

429

499

41,709 143,088 148,011

10.9

12.1

53.9

66.0

8.0

6.5

0.9

0.8

12.2

13.4

0.6

0.6

Cairn India

Buy

314

372

59,945

15,513

16,074

74.0

69.7

51.1

48.6

6.2

6.5

1.0

0.9

18.3

14.8

2.7

2.0

GAIL

Neutral

360

45,684

50,472

55,502

15.3

15.6

35.4

37.0

10.2

9.7

1.8

1.6

19.0

17.2

0.1

ONGC

Accumulate

282

321

241,393 156,331 159,043

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

721

236,161 316,404 319,119

11.2

12.0

63.5

68.7

11.4

10.5

1.2

1.0

11.7

11.4

0.7

0.7

Oil & Gas

Pharmaceuticals
Alembic Pharma

Buy

58

91

1,085

1,624

1,855

14.2

15.6

6.6

9.1

8.7

6.3

2.1

1.7

27.5

29.2

0.9

0.7

Aurobindo Pharma

Buy

114

156

3,314

5,243

5,767

14.6

14.6

11.8

12.6

9.7

9.0

1.0

0.4

11.4

10.9

0.8

0.6

Aventis*

Neutral

1,482

1,682

15.5

15.5

95.0

104.0

18.6

17.0

Cadila Healthcare

Buy

780

953

15,964

6,196

7,443

18.5

19.5

37.6

47.7

20.7

16.4

4.6

3.7

26.8

27.5

2.6

2.1

Cipla

Buy

326

379

26,207

7,687

8,804

21.4

21.4

16.5

18.9

19.8

17.3

3.1

2.7

16.7

16.8

3.3

2.9

Dr Reddy's

Neutral

1,649

27,982

10,696

11,662

20.7

21.0

83.7

92.9

19.7

17.8

4.1

3.4

22.4

21.0

2.7

2.5

Dishman Pharma

Buy

64

92

514

1,280

1,536

17.8

17.8

9.2

11.3

6.9

5.6

0.5

0.5

7.7

8.5

1.1

0.9

GSK Pharma*

Neutral

2,045

17,323

2,651

2,993

31.7

31.2

76.0

82.4

26.9

24.8

7.7

6.7

30.8

29.0

5.6

4.8

Indoco Remedies

Buy

54

82

501

685

837

15.2

15.2

7.4

8.9

7.3

6.1

1.1

0.9

15.9

16.3

0.9

0.7

Ipca labs

Buy

374

435

4,716

2,850

3,474

20.3

20.3

31.9

36.3

11.7

10.3

3.6

2.9

26.2

26.8

1.8

1.5

Lupin

Buy

552

647

24,676

8,426

10,082

19.7

20.0

27.4

32.4

20.2

17.0

4.9

3.9

27.0

25.2

2.8

2.3

Orchid Chemicals

Buy

118

178

835

2,117

2,434

17.7

17.7

16.7

22.2

7.1

5.3

0.7

0.6

9.5

11.5

1.0

0.9

Ranbaxy*

Neutral

488

20,597

12,046

11,980

18.0

15.8

35.7

29.8

13.7

16.4

5.1

4.2

43.1

28.1

1.7

1.7

Sun Pharma

Neutral

621

63,962

9,272

11,080

38.6

38.0

22.7

22.6

27.4

27.5

4.6

4.1

17.9

15.6

5.5

4.4

CESC

Accumulate

304

342

3,801

5,084

5,512

24.2

23.8

45.2

48.5

6.7

6.3

0.7

0.7

11.2

10.9

1.2

1.2

GIPCL

Buy

66

77

994

1,557

1,573

28.8

28.5

10.4

10.9

6.4

6.0

0.6

0.6

10.4

10.2

1.1

0.9

NTPC

Neutral

159

131,185

74,766

86,549

23.1

23.4

12.4

14.1

12.8

11.3

1.6

1.5

13.0

13.5

2.5

2.3

56

78

1,658

657

875

52.0

56.1

8.4

12.7

6.7

4.4

0.4

0.4

6.3

8.9

3.8

2.9

211

35,803

9,878

12,033

44.7

46.1

9.6

13.4

22.0

15.7

1.4

1.3

6.4

8.7

6.1

5.0

Power

Real Estate
Anant Raj

Buy

DLF

Neutral

www.angelbroking.com

Market Outlook
July 13, 2012

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

Sales ( cr )

OPM(%)

EPS ( )

PER(x)

( )

Price ( )

( cr )

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

P/BV(x)

RoE(%)

FY13E

FY14E

FY13E

FY14E

FY13E

EV/Sales(x)

FY14E

FY13E

FY14E

Real Estate
HDIL

Buy

89

115

3,738

2,441

3,344

55.1

48.2

22.7

26.6

3.9

3.4

0.3

0.3

8.8

9.4

3.4

2.6

MLIFE

Buy

326

376

1,331

814

897

26.9

27.0

31.3

33.9

10.4

9.6

1.1

1.0

10.2

10.1

2.0

1.8

Bharti Airtel

Neutral

306

116,299

80,076

86,613

32.8

33.5

15.5

19.8

19.8

15.4

2.1

1.8

10.5

11.9

2.1

1.8

Idea Cellular

Neutral

83

27,355

23,209

26,063

26.2

27.5

3.3

4.9

25.1

16.7

1.9

1.7

7.7

10.3

1.7

1.4

Rcom

Neutral

69

14,221

22,125

23,734

31.9

32.0

4.5

5.9

15.4

11.8

0.4

0.4

2.5

3.1

2.1

1.8

Telecom

zOthers
Abbott India

Accumulate

1,481

1,628

3,146

1,661

1,918

9.7

12.0

60.7

90.4

24.4

16.4

5.0

4.1

22.0

27.3

1.7

1.4

Bajaj Electricals

Buy

198

246

1,969

3,569

4,172

8.6

9.2

17.3

22.3

11.4

8.9

2.5

2.1

22.9

25.3

0.5

0.5

Cera Sanitaryware

Accumulate

290

327

367

405

477

15.8

17.2

31.0

41.0

9.4

7.1

2.1

1.6

24.3

25.8

1.1

0.9

Cravatex

Accumulate

689

785

178

302

364

5.7

6.0

49.0

71.0

14.1

9.7

4.2

3.0

29.8

30.7

0.7

0.6

CRISIL

Neutral

1,071

7,516

982

1,136

34.3

34.3

34.3

40.0

31.2

26.8

14.1

11.3

50.9

46.9

7.2

6.1

Finolex Cables

Buy

43

61

653

2,334

2,687

8.8

9.3

7.6

10.2

5.6

4.2

0.7

0.6

13.7

16.1

0.2

0.2

Force Motors

Buy

479

615

624

2,346

2,753

5.8

6.7

44.0

68.0

10.9

7.0

0.5

0.5

4.8

7.0

0.2

0.2

Goodyear India

Accumulate

340

374

784

1,511

1,692

7.9

9.0

31.5

41.3

10.8

8.2

2.1

1.8

21.2

23.5

0.3

0.2

Graphite India

Buy

88

124

1,710

2,158

2,406

18.1

18.9

12.4

14.0

7.1

6.2

0.9

0.9

14.0

14.3

0.9

0.8

Greenply Industries

Buy

199

309

479

1,925

2,235

10.6

10.9

29.6

44.1

6.7

4.5

1.1

0.9

16.8

21.0

0.5

0.4

HEG

Accumulate

214

242

855

1,746

1,946

16.5

17.7

22.5

32.9

9.5

6.5

1.0

0.9

10.4

14.2

1.1

1.1

Hitachi

Accumulate

145

160

332

857

968

6.9

8.4

10.2

16.0

14.2

9.0

1.7

1.5

12.9

17.8

0.5

0.4

Honeywell Automation

Accumulate

2,646

2,864

2,339

1,761

2,024

6.7

8.2

95.0

127.0

27.9

20.8

3.3

2.8

14.1

16.3

1.2

1.1

INEOS ABS India

Accumulate

715

804

1,257

900

1,020

9.0

11.1

33.0

45.0

21.7

15.9

2.9

2.5

14.3

17.0

1.2

1.0

ITD Cementation

Neutral

227

261

1,535

1,842

11.1

11.1

27.3

38.3

8.3

5.9

0.6

0.6

7.9

10.2

0.6

0.6

Jyothy Laboratories

Buy

126

268

2,032

1,315

1,568

8.6

11.1

6.4

10.9

19.8

11.6

1.7

1.6

8.4

13.9

1.9

1.5

MCX

Buy

1,111

1,598

5,663

610

702

65.5

67.0

67.9

79.9

16.4

13.9

4.8

4.0

29.1

28.9

6.4

5.0

MRF

Buy

10,269

13,106

4,355

12,390

14,400

10.4

11.3 1,334.6 1,638.2

7.7

6.3

1.5

1.2

16.5

17.4

0.5

0.5

Page Industries

Neutral

2,892

3,226

887

1,108

18.3

18.6

95.0

120.9

30.5

23.9

15.9

12.9

57.4

59.5

3.7

2.9

Relaxo Footwears

Accumulate

540

618

648

1,019

1,220

11.2

12.2

44.2

61.8

12.2

8.7

2.9

2.2

26.8

28.6

0.8

0.7

Sintex Industries

Buy

65

79

1,761

4,751

5,189

16.3

16.6

13.6

15.8

4.7

4.1

0.6

0.6

12.9

13.2

0.7

0.6

Siyaram Silk Mills

Buy

282

392

264

1,042

1,173

12.4

12.5

66.3

78.5

4.3

3.6

0.8

0.7

21.1

20.8

0.5

0.4

SpiceJet

Buy

34

40

1,649

5,647

6,513

3.5

6.5

1.9

4.9

17.5

7.0

41.2

6.0

0.4

0.4

TAJ GVK

Buy

67

108

421

300

319

35.8

36.2

7.9

9.1

8.5

7.4

1.1

1.0

13.9

14.4

1.7

1.5

www.angelbroking.com

Market Outlook
July 13, 2012

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

( )

Price ( )

( cr )

Sales ( cr )
FY13E

OPM(%)

EPS ( )

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

zOthers
Tata Sponge Iron

Buy

338

420

520

700

806

18.2

18.2

55.6

65.1

6.1

5.2

0.8

0.7

14.2

14.8

0.3

0.2

TVS Srichakra

Buy

335

462

256

1,612

1,827

9.5

9.8

72.3

92.5

4.6

3.6

1.4

1.0

33.1

32.1

0.4

0.3

United Spirits

Neutral

766

10,020

10,289

11,421

13.5

14.3

31.0

42.9

24.7

17.8

1.9

1.8

8.1

10.3

1.7

1.5

Vesuvius India

Accumulate

379

413

768

628

716

16.4

16.5

29.8

34.4

12.7

11.0

2.2

1.9

18.8

18.6

1.1

0.9

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on July 12, 2012

www.angelbroking.com

Market Outlook
July 13, 2012

www.angelbroking.com

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