Market Outlook 070612

7/31/2019 Market Outlook 070612

1/11

Market OutlookJune 7, 2012

www.angelbroking.com


Dealers Diary

The Indian markets are expected to open in the green tracing positive opening in

most of the Asian bourses and the SGX Nifty after policy makers worldwide

announced steps to revive the slowing economy.

Globally, US markets and major European markets closed sharply higher amid

optimism about further stimulus from the world's central banks. The optimism came

from the European Central Banks (ECB) decision to leave interest rates unchanged

as expected and following the Reserve Bank of Australia's interest rate cut on

Tuesday. Further, ECB president also stated that the central bank stands ready to

act if the economic situation continues to worsen. The sentiments were boosted

further following the release of the Fed's Beige Book report, which said overall

economic activity expanded at a moderate pace during the reporting period from

early April to late May.

Back home, Indian shares rallied on Wednesday, with strong global cues on hopes

for policy action from major central banks which boosted the sentiments. Going

ahead, investors globally are likely to be watchful of Federal Reserve Chairman

Ben Bernankes testimony before the Joint Economic Committee in Washington.

Markets Today

The trend deciding level for the day is 16,350 / 4,965 levels. If NIFTY trades above

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

up to 16,599 16,744 / 5,043 5,089 levels. However, if NIFTY trades below

16,350 / 4,965 levels for the first half-an-hour of trade then it may correct up to

16,205 15,956 / 4,919 4,840 levels.

Indices S2 S1 PIVOT R1 R2SENSEX 15,956 16,205 16,350 16,599 16,744

NIFTY 4,840 4,919 4,965 5,043 5,089

News Analysis

L&T bags road projects worth ` 4,800cr KEC International secures orders worth ` 391crRefer detailed news analysis on the following page

Net Inflows (June 05, 2012)

` cr Purch Sales Net MTD YTD

FII 1,237 1,866 (630) (1,342) 40,596

MFs 650 359 290 348 (6,119)

FII Der ivatives (June 06, 2012)

` cr Purch Sales Net Open Interest

Index Futures 1,778 1,819 (40) 7,777

Stock Futures 1,856 1,278 578 21,664

Gainers / Losers

Gainers Losers

Company Price ( ) chg (%) Company Price (` ) chg (%)

GMR Infra 22 11.1 Wockhardt 849 (2.4)

Pantaloon Retail 163 7.9 GlaxoSmithKline C 2,680 (2.1)

India Infoline 52 7.6 Colgate Palmolive 1,121 (1.9)

Apollo Tyres 84 7.6 Rajesh Exports 135 (1.3)

IVRCL Ltd. 42 7.3 HPCL 301 (1.2)

Domestic Indices Chg (%) (Pts) (Close)

BSE Sensex 2.7 433.7 16,454

Nifty 2.8 133.8 4,997

MID CAP 1.8 103.8 5,932

SMALL CAP 1.5 91.4 6,285

BSE HC 1.1 68.6 6,616

BSE PSU 2.3 154.5 6,876

BANKEX 3.0 327.5 11,219

AUTO 3.9 336.7 9,067

METAL 2.9 287.5 10,136

OIL & GAS 1.7 131.9 7,699

BSE IT 1.5 82.2 5,639

Global Indices Chg (%) (Pts) (Close)

Dow Jones 2.4 286.8 12,415NASDAQ 2.4 66.6 2,845

FTSE 2.4 123.9 5,384

Nikkei 1.8 151.5 8,534

Hang Seng 1.4 261.5 18,521

Straits Times 1.8 48.5 2,761

Shanghai Com (0.1) (2.4) 2,310

Indian ADRs Chg (%) (Pts) (Close)

INFY 3.8 1.7 $45.0

WIT 5.9 0.5 $9.1IBN 5.9 1.7 $30.1

HDB 6.0 1.7 $29.7

Advances / Declines BSE NSE

Advances 1,849 1,168

Declines 894 319

Unchanged 123 67

Volumes ( cr)

BSE 2,060

NSE 11,678


2/11



L&T bags road projects worth `4,800cr

L&Ts subsidiary, L&T Infrastructure Development Project has emerged as the

successful bidder to develop two contiguous road projects of 484 km at a cost of

`

4,800cr. The stretches extend from Amravati to Jalgaon (275 km - Project 1) andJalgaon to Maharashtra, near Surat (209 km - Project 2). The two road sections

are part of NH 6, which connects Surat to Kolkata, and a prominent EastWest

connector. NH 6 passes through states such as Orissa, Chhattisgarh, Maharashtra

and Gujarat. The concession period is 20 years and includes 30 months for

construction.

At the CMP of `1,267, the stock is trading at 16.6x FY2014E earnings and 2.4x

FY2014E P/ BV on a standalone basis. We have used the SOTP methodology to

value the company to capture all i ts business initiatives and investments/ stakes in

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 priceworks out to `1,553, which provides 22.5% upside from current levels.

We recommend a Buy rating on the stock.

KEC International secures orders worth `391cr

KEC International announced that it has won orders worth ` 391cr. The orders

include `361cr worth of order from Tamil Nadu Transmission Corporation for

400kV double circuit transmission line on turnkey basis and another `30cr order

from PGCIL for the supply and development of OPGW communications system on

turnkey basis. We recommend Buy on the stock with a target price of ` 73.

Economic and Poli tical News

Government to al low more airwave slots in 2G auction U.S. pledges measures to provide technology access to India Government unveils new plans for Air India s international operations

Corporate News Dr. Reddy's inks pact with Merck Serono to co-develop biosimilar compounds Alstom T&D India bags ` 41cr contract from Power Grid Corporation Tata Motors commences production at Dharwad plant for SCVs Ashok Leyland bags US$6mn exports order from BangladeshSource: Economic Times, Business Standard, Business Line, Financial Express, Mint


3/11

Global economic events release calendar

Date Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

Jun 7 2012 12:00AM US Initial Jobless claims Thousands 26-May-12 383.00 378.00

UK BOE Announces rates % Ratio May-12 0.50 0.50Jun 9 2012 12:00AM China Industrial Production (YoY) % Change Apr-12 9.30 9.80

China Consumer Price Index (YoY) % Change Apr-12 3.40 3.20

Jun 10 2012 12:00AM China Exports YoY% % Change Apr-12 4.90 7.20

Jun 12 2012 12:00AM India Industrial Production YoY % Change Mar-12 (3.50) 1.70

UK Industrial Production (YoY) % Change Mar-12 (2.60) --

Jun 13 2012 12:00AM US Producer Price Index (mom) % Change Apr-12 (0.20) (0.70)

Jun 14 2012 12:00AM US Consumer price index (mom) % Change Apr-12 -- (0.20)

Euro Zone Euro-Zone CPI (YoY) % Apr-12 2.60 2.40

IndiaMonthly Wholesale PricesYoY%

% Change Apr-12 7.23 7.45

Jun 15 2012 12:00AM US Industrial Production % Apr-12 1.09 0.05

Jun 18 2012 12:00AM India RBI Repo rate % - 8.00 --

India RBI Cash Reserve ratio % - 4.75 --

India RBI Reverse Repo rate % - 7.00 --

Jun 19 2012 12:00AM UK CPI (YoY) % Change Apr-12 3.00 --

US Housing Starts Thousands Apr-12 717.00 --

US Building permits Thousands Apr-12 723.00 --

Jun 20 2012 12:00AM UK Jobless claims change % Change Apr-12 (13.70) --

US FOMC rate decision % Apr-12 0.25 --

Jun 23 2012 12:00AM Germany PMI Services Value May-12 51.80 --

Jul 5 2012 12:00AM Euro Zone ECB announces interest rates % Jun-12 1.00 --

Aug 14 2012 12:00AM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change Mar-12 -- --

Source: Bloomberg, Angel Research


June 07, 2012

Market Outlook


4/11

Market StrategyJune 7, 2012


Macro watch

Exhibit 1:Quarterly GDP trends

5.9

7.5

9.8

7.4

9.4

8.5

7.68.2

9.2

8.0

6.76.1

5.3

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

(%)

Source: CSO, Angel Research

Exhibit 2:IIP trends

5.36.2

9.5

3.7 3.42.5

(5.0)

6.0

2.7

1.1

4.1

(3.5)(6.0)

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

12.0

Apr-

11

May-1

1

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

(%)

Source: MOSPI, Angel Research

Exhibit 3:Monthly WPI inflation trends

9.6 9.5 9.4 9.810.0 9.9 9.5

7.76.9

7.46.9 7.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

May-1

1

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

Apr-

12

(%)

Source: MOSPI, Angel Research

Exhibit 4:Manufacturing and services PMI

48.0

50.0

52.0

54.0

56.0

58.0

60.0

Apr-

11

May-1

1

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

Apr-

12

Mfg. PMI Services PMI

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

Exhibit 5:Exports and imports growth trends

(15)

0

15

30

45

60

75

90

Apr-

11

May-1

1

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

Exports yoy growth Imports yoy growth(%)

Source: Bloomberg, Angel Research

Exhibit 6:Key policy rates8.00

7.00

4.75

4.00

5.00

6.00

7.00

8.00

9.00

May-1

1

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

Apr-

12

May-1

2

Repo rate Reverse Repo rate CRR(%)

Source: RBI, Angel Research


5/11

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

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

Agri / Agri Chemical

Rallis Neutral 124 - 2,412 1,432 1,647 14.7 14.7 7.0 8.0 17.7 15.5 3.7 3.2 22.8 22.3 1.7 1.4

United Phosphorus Buy 114 183 5,257 8,191 8,764 16.5 16.5 17.1 18.3 6.7 6.2 1.1 0.9 17.5 16.2 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Accumulate 300 345 2,562 2,715 3,041 15.3 15.3 29.2 32.8 10.3 9.1 2.4 1.9 26.0 23.3 0.9 0.8

Apollo Tyres Buy 84 100 4,236 13,699 15,184 10.5 10.2 12.1 13.3 7.0 6.3 1.3 1.1 19.7 18.4 0.5 0.4

Ashok Leyland Buy 26 33 6,931 14,798 16,687 9.6 9.6 2.4 3.0 10.7 8.8 2.1 1.9 14.8 16.5 0.6 0.5

Automotive Axle Accumulate 471 514 711 1,211 1,387 12.1 11.7 50.3 57.1 9.4 8.2 2.4 1.9 27.8 25.7 0.6 0.5Bajaj Auto Buy 1,543 1,835 44,655 22,118 24,889 19.0 18.6 115.7 126.5 13.3 12.2 5.4 4.3 45.0 38.9 1.6 1.3

Bharat Forge Buy 311 372 7,242 7,173 7,998 16.3 16.5 22.3 26.6 13.9 11.7 2.7 2.3 21.0 21.0 1.1 0.9

Bosch India Accumulate 8,948 9,429 28,095 9,390 10,716 19.5 19.1 420.2 471.4 21.3 19.0 5.0 4.1 23.3 21.8 2.7 2.3

CEAT Buy 94 164 322 5,067 5,631 8.0 7.6 39.4 41.0 2.4 2.3 0.4 0.4 18.8 16.5 0.3 0.3

Exide Industries Buy 125 146 10,651 5,787 6,595 15.5 17.0 7.1 9.0 17.6 14.0 3.1 2.7 18.6 20.3 1.5 1.2

FAG Bearings Neutral 1,525 - 2,534 1,531 1,748 18.8 18.5 118.0 132.8 12.9 11.5 2.8 2.3 24.0 21.9 1.4 1.1

Hero Motocorp Accumulate 1,946 2,221 38,854 26,106 29,296 15.0 15.2 140.3 148.1 13.9 13.1 6.6 5.0 54.8 43.3 1.2 0.9

JK Tyre Buy 76 113 312 8,058 9,025 5.4 5.5 24.8 32.2 3.1 2.4 0.3 0.3 11.4 13.2 0.3 0.3

Mahindra and Mahindra Buy 676 793 41,486 34,740 39,263 10.7 11.0 44.9 51.7 15.1 13.1 2.7 2.3 18.9 19.1 0.9 0.7

Maruti Buy 1,109 1,510 32,031 42,683 48,736 7.1 7.5 86.6 100.6 12.8 11.0 1.8 1.6 15.3 15.5 0.5 0.5

Motherson Sumi Buy 164 216 6,351 11,167 12,516 9.5 10.0 11.3 14.4 14.5 11.4 3.1 2.6 23.3 24.7 0.7 0.6

Subros Neutral 32 - 191 1,225 1,393 8.5 8.2 4.2 5.0 7.6 6.4 0.8 0.7 10.3 11.8 0.4 0.3

Tata Motors Buy 234 299 62,417 189,676 209,586 12.5 12.5 38.3 43.2 6.1 5.4 2.0 1.6 36.0 31.9 0.4 0.4

TVS Motor Buy 33 55 1,584 7,982 8,816 6.4 6.3 5.0 5.6 6.7 6.0 1.2 1.0 18.9 18.2 0.2 0.2

Capital Goods

ABB* Sell 743 498 15,736 8,760 10,023 6.4 6.4 18.2 20.7 40.7 35.8 5.5 4.9 14.4 14.6 1.8 1.5BGR Energy Neutral 286 - 2,061 4,195 4,837 10.6 10.2 30.1 32.4 9.5 8.8 1.7 1.5 18.4 17.6 1.0 1.0

BHEL Neutral 215 - 52,672 46,344 46,916 16.5 16.5 23.5 24.1 9.1 8.9 1.8 1.6 21.3 18.9 1.0 1.0

Blue Star Buy 162 221 1,460 3,250 3,551 5.9 5.9 12.4 15.8 13.1 10.3 2.7 2.3 21.2 23.8 0.5 0.4

Crompton Greaves Buy 114 133 7,342 12,451 14,265 5.5 6.1 8.0 9.5 14.3 12.1 1.9 1.7 13.9 14.9 0.6 0.5

Jyoti Structures Buy 41 67 340 2,622 2,801 10.6 11.0 10.9 13.4 3.8 3.1 0.5 0.4 12.7 13.9 0.3 0.3

KEC International Buy 52 73 1,334 6,686 7,200 7.7 7.9 10.6 12.2 4.9 4.3 0.9 0.8 25.9 24.0 0.3 0.3

LMW Buy 1,586 2,609 1,787 2,663 3,130 12.8 12.8 185.0 217.4 8.6 7.3 1.7 1.5 21.2 21.7 0.2 0.2

Thermax Neutral 444 - 5,296 5,514 5,559 8.3 8.0 29.7 28.4 15.0 15.7 2.8 2.5 20.2 16.9 0.8 0.8


June 07, 2012

Market Outlook

Stock Watch


6/11



Cement

ACC Neutral 1,159 - 21,751 11,018 12,663 19.9 21.2 70.7 81.2 16.4 14.3 2.9 2.6 18.0 19.0 1.7 1.4

Ambuja Cements Neutral 153 - 23,442 10,035 11,504 23.5 23.8 10.1 10.6 15.1 14.5 3.0 2.7 18.5 19.4 2.0 1.6

India Cements Neutral 77 - 2,358 4,423 4,906 18.2 18.8 9.9 12.7 7.8 6.1 0.7 0.6 8.6 10.5 0.8 0.7

J K Lakshmi Cements Buy 64 79 777 1,938 2,246 19.1 20.1 14.6 16.1 4.3 3.9 0.6 0.5 13.4 13.6 0.5 0.9

Madras Cements Neutral 138 - 3,290 3,444 3,786 25.5 24.9 14.6 17.1 9.5 8.1 1.4 1.2 15.6 16.0 1.6 1.3

Shree Cements Neutral 2,462 - 8,578 5,465 6,249 24.3 23.7 151.5 222.1 16.3 11.1 3.9 3.3 21.6 25.8 1.3 1.0

UltraTech Cement Neutral 1,396 - 38,268 20,116 22,655 21.3 22.5 82.1 97.5 17.0 14.3 2.7 2.3 16.8 17.4 1.8 1.7Construction

Ashoka Buildcon Buy 210 273 1,105 2,014 2,293 22.4 22.4 22.6 26.7 9.3 7.9 1.0 0.9 11.4 11.9 2.4 2.7

Consolidated Co Neutral 14 - 254 2,526 2,792 5.7 6.6 1.8 2.8 7.5 4.9 0.4 0.4 5.5 8.1 0.3 0.3

Hind. Const. Neutral 19 - 1,122 4,239 4,522 11.1 11.8 (1.8) (0.8) (10.3) (23.7) 1.1 1.2 (9.5) (4.7) 1.3 1.2

IRB Infra Buy 122 166 4,061 3,821 4,582 42.3 40.2 15.0 16.9 8.2 7.2 1.2 1.1 16.1 15.8 2.7 2.5

ITNL Buy 176 265 3,419 6,619 7,925 23.8 23.3 22.0 26.7 8.0 6.6 1.1 1.0 14.9 15.9 2.2 2.1

IVRCL Infra Buy 42 61 1,117 5,510 6,722 8.8 9.0 2.5 4.6 16.5 9.1 0.6 0.5 3.4 5.8 0.7 0.6

Jaiprakash Asso. Buy 66 88 14,024 15,259 17,502 25.7 24.7 4.2 5.0 15.6 13.2 1.3 1.2 8.5 9.3 2.2 2.0

Larsen & Toubro Buy 1,267 1,553 77,654 59,559 69,089 12.1 11.5 70.8 76.5 17.9 16.6 2.7 2.4 16.1 15.3 1.4 1.3

Madhucon Proj Buy 39 70 286 2,206 2,502 10.7 10.7 4.6 4.7 8.4 8.3 0.4 0.4 5.2 5.0 0.7 0.7

Nagarjuna Const. Buy 31 41 804 5,453 6,169 8.1 8.5 1.6 1.9 19.1 16.3 0.3 0.3 1.8 2.1 0.6 0.7

Patel Engg. Neutral 89 - 621 3,609 3,836 13.1 13.1 14.0 14.6 6.3 6.1 0.4 0.4 6.3 6.1 1.0 1.1

Punj Lloyd Neutral 46 - 1,511 10,592 12,193 8.4 8.4 2.9 4.6 15.7 10.0 0.5 0.5 3.9 3.1 0.6 0.6

Sadbhav Engg. Buy 126 182 1,890 2,789 3,147 10.6 10.7 8.4 10.4 14.9 12.1 2.0 1.8 15.0 15.6 0.8 0.8

Simplex Infra Buy 215 265 1,064 6,732 7,837 8.1 8.4 23.5 29.4 9.1 7.3 0.8 0.8 9.6 11.0 0.5 0.4

FinancialsAllahabad Bank Accumulate 136 147 6,785 7,392 8,542 3.1 3.1 38.3 42.1 3.6 3.2 0.6 0.5 18.4 17.6 - -

Andhra Bank Neutral 113 - 6,315 5,151 5,843 3.2 3.1 22.4 25.7 5.0 4.4 0.8 0.7 15.8 16.0 - -

Axis Bank Buy 1,020 1,476 42,223 16,157 19,557 3.2 3.2 116.4 139.1 8.8 7.3 1.6 1.4 20.0 20.3 - -

Bank of Baroda Buy 721 925 28,219 15,993 18,918 2.6 2.6 127.3 149.9 5.7 4.8 0.9 0.8 17.8 18.2 - -

Bank of India Accumulate 342 389 19,635 13,558 15,551 2.5 2.4 61.6 70.8 5.6 4.8 0.9 0.8 16.8 16.9 - -

Bank of Maharashtra Neutral 51 - 3,004 3,580 4,050 3.2 3.2 11.5 13.1 4.4 3.9 0.7 0.6 17.4 17.2 - -

Canara Bank Buy 415 493 18,404 12,061 13,906 2.3 2.3 83.1 92.7 5.0 4.5 0.8 0.7 16.7 16.4 - -

Central Bank Neutral 77 - 5,686 6,838 7,912 2.3 2.4 13.8 20.3 5.6 3.8 0.8 0.7 10.9 14.4 - -


June 07, 2012

Market Outlook

Stock Watch


7/11



Financials

Corporation Bank Accumulate 414 468 6,129 5,203 5,880 2.2 2.1 107.5 112.7 3.9 3.7 0.7 0.6 17.9 16.5 - -

Dena Bank Accumulate 96 107 3,355 3,149 3,522 2.8 2.8 23.3 26.1 4.1 3.7 0.7 0.6 17.7 17.0 - -

Federal Bank Neutral 418 - 7,146 2,743 3,131 3.4 3.3 49.7 57.4 8.4 7.3 1.1 1.0 14.1 14.6 - -

HDFC Neutral 649 - 95,960 7,393 8,844 3.5 3.4 31.7 37.9 20.5 17.1 4.1 3.6 34.7 31.9 - -

HDFC Bank Accumulate 519 567 122,080 21,831 27,477 4.3 4.3 28.3 35.5 18.4 14.6 3.5 3.0 20.8 22.1 - -

ICICI Bank Buy 807 1,174 92,767 22,209 26,512 2.8 2.8 67.9 81.1 11.9 10.0 1.4 1.3 14.7 16.0 - -

IDBI Bank Buy 89 113 11,371 8,004 9,589 1.9 2.0 19.9 23.9 4.5 3.7 0.6 0.5 13.8 14.9 - -Indian Bank Buy 165 190 7,089 6,312 7,119 3.4 3.3 41.1 43.7 4.0 3.8 0.7 0.6 18.2 16.9 - -

IOB Accumulate 85 92 6,759 7,354 8,283 2.5 2.4 16.3 21.7 5.2 3.9 0.6 0.5 11.5 13.9 - -

J & K Bank Neutral 926 - 4,490 2,535 2,861 3.5 3.4 176.3 184.4 5.3 5.0 1.0 0.8 19.3 17.6 - -

LIC Housing Finance Buy 241 286 12,175 2,108 2,607 2.6 2.6 24.5 30.6 9.9 7.9 1.8 1.6 20.1 21.4 - -

Oriental Bank Accumulate 237 262 6,913 6,431 7,315 2.7 2.6 54.4 63.8 4.4 3.7 0.6 0.5 13.6 14.3 - -

Punjab Natl.Bank Buy 768 1,041 26,040 19,893 23,653 3.1 3.2 153.4 175.2 5.0 4.4 0.9 0.8 18.3 18.1 - -

South Ind.Bank Neutral 24 - 2,724 1,440 1,635 2.7 2.5 3.8 4.1 6.4 5.9 1.2 1.1 19.9 18.6 - -

St Bk of India Accumulate 2,159 2,469 144,909 68,311 79,649 3.6 3.6 230.4 273.4 9.4 7.9 1.5 1.3 18.2 18.8 - -

Syndicate Bank Buy 96 126 5,761 7,133 8,255 3.0 3.0 25.9 30.0 3.7 3.2 0.6 0.5 16.9 17.1 - -

UCO Bank Neutral 73 - 4,882 5,623 6,380 2.4 2.4 16.9 17.9 4.4 4.1 0.8 0.7 16.5 15.4 - -

Union Bank Buy 201 261 11,044 10,215 11,854 2.9 2.8 42.7 50.3 4.7 4.0 0.8 0.7 17.0 17.5 - -

United Bank Buy 62 78 2,242 3,551 4,128 2.7 2.8 18.8 22.6 3.3 2.8 0.5 0.4 15.5 16.5 - -

Vijaya Bank Neutral 57 - 2,825 2,668 3,001 2.2 2.2 10.6 12.2 5.4 4.7 0.8 0.7 13.3 13.8 - -

Yes Bank Buy 331 450 11,704 3,209 4,144 2.7 2.8 33.9 41.5 9.8 8.0 2.1 1.7 23.1 23.3 - -

FMCG

Asian Paints Neutral 3,827 - 36,712 11,423 13,309 16.3 16.3 125.3 148.4 30.6 25.8 10.4 8.1 38.0 35.4 3.1 2.7Britannia Buy 523 633 6,245 5,835 6,824 6.3 6.7 20.7 27.5 25.2 19.0 9.9 7.3 42.7 44.3 1.0 0.9

Colgate Neutral 1,121 - 15,242 3,007 3,417 21.1 22.1 38.2 43.8 29.3 25.6 34.9 27.4 130.2 119.9 4.9 4.4

Dabur India Neutral 107 - 18,614 5,878 6,799 16.8 17.0 4.2 4.9 25.8 21.8 9.3 7.6 39.3 42.0 3.2 2.7

GlaxoSmith Con* Neutral 2,690 - 11,311 3,124 3,663 17.1 11.6 103.0 123.3 26.1 21.8 8.1 6.5 34.0 32.9 3.3 2.7

Godrej Consumer Neutral 575 - 19,569 5,973 7,000 18.4 18.6 22.8 27.2 25.2 21.2 6.9 5.6 31.3 38.4 3.4 2.9

HUL Neutral 420 - 90,816 25,350 29,309 14.3 14.4 14.1 16.4 29.7 25.6 22.3 17.4 82.7 76.2 3.4 2.9

ITC Accumulate 234 252 183,068 29,638 34,159 35.4 35.8 9.3 10.9 25.1 21.5 8.1 6.6 35.3 33.8 5.9 5.1


June 07, 2012

Market Outlook

Stock Watch


8/11



FMCG

Marico Neutral 169 - 10,863 4,667 5,427 12.8 12.9 6.6 8.1 25.4 20.7 6.8 5.3 30.0 28.8 2.4 2.0

Nestle* Neutral 4,552 - 43,886 8,731 10,539 21.0 21.4 119.3 147.9 38.2 30.8 23.4 15.9 73.0 61.6 5.1 4.1

Tata Global Buy 108 136 6,673 7,011 7,711 9.7 10.0 6.3 7.5 17.2 14.4 1.7 1.6 9.5 10.9 0.9 0.8

IT

HCL Tech Accumulate 502 560 34,756 22,792 25,743 17.4 17.4 37.8 43.0 13.3 11.7 2.9 2.5 22.3 21.3 1.5 1.3

Hexaware Neutral 124 - 3,658 1,821 2,105 19.0 18.6 9.8 10.7 12.6 11.5 2.9 2.5 23.7 22.5 1.7 1.4

Infosys Buy 2,410 2,792 138,392 37,615 42,491 31.1 30.6 158.5 174.5 15.2 13.8 3.4 2.9 22.5 20.8 3.0 2.5Infotech Enterprises Accumulate 166 177 1,849 1,758 1,972 17.0 16.6 16.8 18.6 9.9 8.9 1.4 1.2 13.6 13.2 0.7 0.5

KPIT Cummins Reduce 124 114 2,213 2,028 2,239 15.0 14.8 9.0 11.4 13.8 10.9 2.5 2.0 19.3 18.7 1.1 0.9

Mahindra Satyam Accumulate 78 86 9,185 7,097 7,812 16.2 16.0 7.5 8.0 10.4 9.8 1.4 1.2 13.2 12.3 0.9 0.7

Mindtree Neutral 635 - 2,580 2,172 2,450 16.1 15.5 53.9 58.5 11.8 10.9 2.2 1.8 18.9 17.0 1.0 0.8

Mphasis Buy 348 433 7,316 5,904 6,320 18.3 17.9 38.7 41.2 9.0 8.5 1.3 1.2 14.9 13.7 0.8 0.6

NIIT Buy 42 52 689 1,162 1,304 14.8 15.1 7.1 8.8 5.9 4.7 1.0 0.9 16.7 18.4 0.4 0.3

Persistent Neutral 347 - 1,387 1,109 1,224 23.3 22.4 37.2 40.1 9.3 8.7 1.4 1.3 15.4 14.5 0.9 0.8

TCS Neutral 1,253 - 245,289 57,189 66,329 29.3 28.7 63.2 70.9 19.9 17.7 6.1 4.9 30.5 27.7 4.1 3.4

Tech Mahindra Accumulate 674 725 8,597 5,880 6,314 15.6 15.2 75.9 82.2 8.9 8.2 1.8 1.5 20.1 18.1 1.4 1.2

Wipro Accumulate 409 430 100,456 41,918 46,879 19.4 19.9 25.1 28.7 16.3 14.3 3.0 2.6 18.6 18.3 2.1 1.7

Media

D B Corp Buy 193 269 3,534 1,652 1,863 25.7 26.3 13.5 16.1 14.3 12.0 3.2 2.7 24.1 24.4 2.0 1.7

HT Media Buy 100 148 2,342 2,255 2,555 16.3 16.7 9.0 10.6 11.1 9.4 1.4 1.2 13.4 13.8 0.6 0.5

Jagran Prakashan Buy 90 137 2,846 1,499 1,642 27.4 28.8 7.6 9.1 11.8 9.9 4.0 3.5 34.6 37.7 1.9 1.7

PVR Neutral 153 - 397 625 732 17.4 16.9 12.4 15.8 12.3 9.7 2.0 2.1 8.5 9.9 0.8 0.7

Sun TV Network Neutral 235 - 9,247 2,135 2,458 75.2 74.4 20.9 24.0 11.2 9.8 2.6 2.2 26.0 25.1 3.3 2.6Metals & Mining

Bhushan Steel Neutral 446 - 9,465 9,232 13,557 30.8 31.1 48.0 58.6 9.3 7.6 1.2 1.0 14.5 7.5 3.2 2.2

Coal India Accumulate 322 353 203,324 68,841 74,509 25.3 25.3 24.1 26.1 13.4 12.3 3.7 3.0 30.4 26.8 2.1 1.8

Electrosteel Castings Buy 18 27 607 1,984 2,074 10.6 12.0 2.7 3.3 6.5 5.3 0.3 0.1 5.2 6.2 0.4 0.4

Hind. Zinc Buy 119 139 50,281 13,043 14,223 51.8 52.8 14.8 16.6 8.0 7.2 1.6 1.3 21.2 19.9 2.1 1.5

Hindalco Neutral 121 - 23,070 84,652 88,766 9.6 10.5 17.0 18.9 7.1 6.4 0.7 0.6 9.7 9.8 0.5 0.5

JSW Steel Accumulate 627 663 13,981 39,592 44,910 18.0 17.7 74.7 88.9 8.4 7.1 0.8 0.7 10.7 11.6 0.7 0.7

MOIL Accumulate 271 296 4,559 1,007 1,091 56.6 56.9 29.4 31.9 9.2 8.5 1.7 1.5 19.0 18.2 2.3 1.9

Monnet Ispat Buy 345 593 2,221 3,115 3,748 22.1 25.1 59.1 66.8 5.8 5.2 0.8 0.7 15.6 15.3 1.5 1.1


June 07, 2012

Market Outlook

Stock Watch


9/11



Metals & Mining

Nalco Reduce 60 54 15,360 8,474 9,024 12.6 16.2 2.6 3.6 23.3 16.6 1.3 1.2 5.6 7.5 1.4 1.3

NMDC Accumulate 167 187 66,330 11,959 13,062 78.2 78.6 19.1 20.9 8.8 8.0 2.2 1.8 27.1 24.4 3.4 3.0

SAIL Neutral 95 - 39,095 50,914 60,785 14.6 15.1 9.4 10.5 10.1 9.0 0.9 0.8 9.2 9.6 1.2 1.1

Sesa Goa Accumulate 181 206 15,692 9,067 9,316 35.7 35.5 44.5 44.3 4.1 4.1 0.9 0.7 23.5 19.5 0.3 -

Sterlite Inds Buy 94 123 31,455 45,805 49,029 21.2 23.5 16.5 19.1 5.7 4.9 0.6 0.6 11.5 12.0 0.3 0.2

Tata Steel Buy 410 499 39,786 143,088 148,011 10.9 12.1 53.9 66.0 7.6 6.2 0.9 0.8 12.2 13.4 0.6 0.6

Oil & GasCairn India Buy 321 372 61,308 15,513 16,074 74.0 69.7 51.1 48.6 6.3 6.6 1.1 0.9 18.3 14.8 2.8 2.1

GAIL Buy 326 389 41,378 50,472 55,502 15.3 15.6 35.4 37.0 9.2 8.8 1.6 1.4 19.0 17.2 0.1 -

ONGC Buy 261 319 223,341 148,157 150,563 37.6 39.5 31.0 33.6 8.4 7.8 1.5 1.3 18.8 18.1 1.1 1.0

Reliance Industries Buy 714 872 233,836 325,734 328,669 10.9 11.7 65.8 70.1 10.9 10.2 1.1 1.0 11.9 11.5 0.7 0.7

Pharmaceuticals

Alembic Pharma Buy 50 91 936 1,624 1,855 14.2 15.6 6.6 9.1 7.5 5.5 1.8 1.4 27.5 29.2 0.8 0.7

Aurobindo Pharma Buy 109 156 3,176 5,243 5,767 14.6 14.6 13.8 14.7 7.9 7.4 0.9 0.4 11.4 10.9 0.8 0.6

Aventis* Neutral 2,124 - 4,891 1,482 1,682 15.5 15.5 95.0 104.0 22.4 20.4 4.0 3.1 18.6 17.0 3.1 2.6

Cadila Healthcare Buy 726 953 14,868 6,196 7,443 18.5 19.5 43.3 50.8 16.8 14.3 4.3 3.5 25.4 24.8 2.4 1.9

Cipla Buy 309 379 24,806 7,687 8,804 21.4 21.4 16.5 18.9 18.7 16.4 2.9 2.6 16.7 16.8 3.2 2.7

Dr Reddy's Neutral 1,615 - 27,368 10,696 11,662 20.7 21.0 83.7 92.9 19.3 17.4 4.0 3.4 22.4 21.0 2.7 2.4

Dishman Pharma Buy 54 92 435 1,280 1,536 17.8 17.8 9.2 11.3 5.9 4.8 0.4 0.4 7.7 8.5 1.0 0.8

GSK Pharma* Neutral 1,987 - 16,826 2,651 2,993 31.7 31.2 76.0 82.4 26.1 24.1 7.5 6.6 30.8 29.0 5.4 4.7

Indoco Remedies Buy 55 82 508 685 837 15.2 15.2 7.4 8.9 7.5 6.2 1.1 0.9 15.9 16.3 0.9 0.7

Ipca labs Buy 336 435 4,224 2,850 3,474 20.3 20.3 26.6 32.7 12.6 10.3 3.2 2.6 28.2 27.9 1.6 1.3

Lupin Buy 552 646 24,640 8,426 10,082 19.7 20.0 29.7 32.4 18.6 17.0 4.8 3.9 27.0 25.2 2.8 2.3Orchid Chemicals Buy 121 178 850 2,117 2,434 17.7 17.7 16.7 22.2 7.2 5.4 0.7 0.6 9.5 11.5 1.1 0.9

Ranbaxy* Neutral 493 - 20,829 12,046 11,980 18.0 15.8 35.7 29.8 13.8 16.6 5.2 4.2 43.1 28.1 1.8 1.7

Sun Pharma Neutral 574 - 59,122 9,272 11,080 38.6 38.0 22.7 22.6 25.3 25.4 4.2 3.7 17.9 15.6 5.0 3.9

Power

CESC Buy 278 342 3,477 5,084 5,512 24.2 23.8 45.2 48.5 6.2 5.7 0.7 0.6 11.2 10.9 1.1 1.2

GIPCL Buy 61 77 916 1,557 1,573 28.8 28.5 10.4 10.9 5.9 5.6 0.6 0.5 10.4 10.2 1.1 0.9

NTPC Neutral 153 - 125,826 74,766 86,549 23.1 23.4 12.4 14.1 12.3 10.8 1.5 1.4 13.0 13.5 2.4 2.2

Real Estate

Anant Raj Buy 48 78 1,421 657 875 52.0 56.1 8.4 12.7 5.7 3.8 0.4 0.3 6.3 8.9 3.4 2.6

DLF Neutral 188 - 31,955 9,878 12,033 44.7 46.1 9.6 13.4 19.6 14.0 1.2 1.2 6.4 8.7 5.7 4.7


June 07, 2012

Market Outlook

Stock Watch


10/11



Real Estate

HDIL Buy 66 115 2,784 2,441 3,344 53.0 46.7 21.4 25.4 3.1 2.6 0.3 0.2 8.4 9.1 3.0 2.3

Telecom

Bharti Airtel Neutral 297 - 112,692 80,967 88,684 33.1 33.4 17.9 22.0 16.6 13.5 1.9 1.7 11.5 12.5 2.1 1.7

Idea Cellular Neutral 77 - 25,583 22,558 25,326 26.4 27.5 3.2 4.7 24.0 16.3 1.8 1.6 7.5 10.0 1.6 1.4

Rcom Neutral 65 - 13,457 21,899 23,740 32.7 32.7 4.2 6.7 15.4 9.8 0.3 0.3 2.1 3.2 2.0 1.6

zOthers

Bajaj Electrical Buy 178 245 1,776 3,670 4,384 8.5 8.5 18.3 22.3 9.7 8.0 2.1 1.8 23.9 24.3 0.5 0.4CRISIL Neutral 1,060 - 7,439 982 1,136 34.3 34.3 34.3 40.0 30.9 26.5 14.0 11.2 50.9 46.9 7.2 6.0

Finolex Cables Buy 37 61 572 2,334 2,687 8.8 9.3 7.6 10.2 4.9 3.7 0.6 0.6 13.7 16.1 0.2 0.1

Graphite India Buy 89 124 1,733 2,158 2,406 18.1 18.9 12.4 14.0 7.2 6.3 1.0 0.9 14.0 14.3 0.9 0.8

Greenply Buy 216 298 522 1,800 2,047 11.1 11.6 34.1 49.6 6.4 4.4 1.2 0.9 20.2 23.7 0.6 0.4

Page Industries Neutral 2,977 - 3,320 935 1,168 19.6 19.6 99.7 122.2 29.9 24.4 17.3 13.8 64.2 63.1 3.6 2.9

Sintex Buy 54 129 1,485 4,751 5,189 16.3 16.6 13.6 15.8 4.0 3.5 0.5 0.5 13.1 13.4 0.7 0.5

Siyaram Silk Mills Buy 254 439 238 1,042 1,173 12.4 12.5 66.3 78.5 3.8 3.2 0.7 0.6 21.1 20.8 0.5 0.4

SpiceJet Neutral 32 - 1,538 5,384 6,443 (1.0) 4.1 (3.4) 2.4 (9.3) 13.3 (12.8) 27.1 - - 0.5 0.4

Taj GVK Buy 61 108 385 300 319 35.8 36.2 7.9 9.1 7.8 6.8 1.0 0.9 13.9 14.4 1.6 1.4

Goodyear Accumulate 326 372 752 1,571 1,753 7.2 8.6 29.8 42.4 10.9 7.7 2.1 1.7 20.2 24.3 0.3 0.2

HEG Buy 201 242 804 1,746 1,946 16.5 17.7 22.5 32.9 8.9 6.1 0.9 0.8 10.4 14.2 1.1 1.0

Hitachi Buy 118 160 271 857 968 6.9 8.4 10.2 16.0 11.6 7.4 1.4 1.2 12.9 17.8 0.4 0.4

Honeywell Automation Accumulate 2,519 2,674 2,227 1,542 1,739 9.4 10.0 116.1 140.8 21.7 17.9 3.1 2.7 15.5 15.9

Ineos ABS Neutral 741 - 1,303 900 1,011 10.2 11.5 35.6 45.7 20.8 16.2 3.0 2.6 15.4 17.2

ITD Cementation Neutral 225 - 259 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

MRF Buy 10,746 13,106 4,557 12,390 14,400 10.4 11.3 1,334.6 1,638.2 8.1 6.6 1.6 1.3 16.5 17.4 0.6 0.5Relaxo Neutral 456 - 547 1,019 1,208 11.0 10.8 44.9 53.1 10.2 8.6 2.4 1.9 27.2 25.0 0.7 0.6

Tata Sponge Buy 284 420 437 757 875 19.0 19.1 63.5 72.9 4.5 3.9 0.7 0.6 16.1 16.1 0.2 -

TVS Srichakra Buy 319 462 244 1,612 1,827 9.5 9.8 72.3 92.5 4.4 3.5 1.3 1.0 33.1 32.1 0.4 0.3

Vesuvius India Accumulate 370 413 751 628 716 16.4 16.5 29.8 34.4 12.4 10.8 2.2 1.9 18.8 18.6 1.0 0.8

Abbott India Accumulate 1,441 1,628 3,062 1,661 1,918 9.7 12.0 60.7 90.4 23.8 15.9 4.9 3.9 22.0 27.3 1.6 1.3

Cera Sanitaryware Ltd Accumulate 252 288 319 385 444 17.2 17.4 28.9 32.0 8.7 7.9 1.8 1.5 23.4 21.1 1.0 0.9

Jyothy Laboratories Buy 215 268 1,735 1,315 1,568 8.6 11.1 6.4 10.9 33.8 19.8 2.8 2.7 8.4 13.9 1.6 1.3

Force Motors Buy 455 680 593 2,346 2,753 6.7 7.0 50.9 61.9 8.9 7.4 0.5 0.5 5.5 6.3 0.2 0.2

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on June 06, 2012


June 07, 2012

Market Outlook

Stock Watch


11/11

June 07, 2012Market Outlook

Documents

Market Outlook 070612