Market Outlook, 23-05-13

7/30/2019 Market Outlook, 23-05-13

1/20

www.angelbroking.com

Market OutlookMay 23, 2013

Dealers Diary

The Indian markets are expected to open in red tracking flat to negative opening in

most of the Asian markets, on worries the Federal Reserve could downscale its

bond purchases.US markets ended lower in yesterdays trading session as comments from the Fed

chief suggested the central bank may begin tapering its bond-buying program in

coming months. The Fed chief told that a premature tightening of monetary policy

carries a substantial risk of slowing or ending the economic recovery. However,

Bernanke later acknowledged that upbeat economic data could lead the Fed to

scale back its asset purchase program in the next few meetings. Meanwhile, the

National Association of Realtors released a report showing a modest increase in

existing home sales by 0.6% to a seasonally adjusted annual rate of 4.97mn in

April from an upwardly revised 4.94mn in March.

Meanwhile Indian markets erased early gains to end modestly lower on

Wednesday, as L&T results disappointed street and investors awaited Federal

Reserve Chairman Ben Bernanke's testimony before the Joint Economic Committee

of Congress later in the global day.

Markets Today

The trend deciding level for the day is 20,094 / 6,106 levels. If NIFTY trades above

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

up to 20,188 20,314 / 6,137 6,179 levels. However, if NIFTY trades below

20,094 / 6,106 levels for the first half-an-hour of trade then it may correct up to

19,969 19,875 / 6,063 6,032 levels.

Indices S2 S1 PIVOT R1 R2SENSEX 19,875 19,969 20,094 20,188 20,314NIFTY 6,032 6,063 6,106 6,137 6,179

News Analysis Oil ministry gives in-principle nod to export parity pricing for Petroleum

products

Ranbaxy Labs - Under Drugs Controller General of India (DCGI) probe JSW Steel reports subdued crude steel production for April 2013 Result Review: L&T, JLL, Thermax, NCC, Prakash Industries, TVS Srichakra,

Subros

Result Preview: SBI, BHEL, Tata Steel, JSW SteelRefer detailed news analysis on the following page

Net Inflows (May 21, 2013)` cr Purch Sales Net MTD YTDFII 4,710 2,128 2,582 15,574 76,732

MFs 479 688 (209) (2,704) (11,294)

FII Derivatives (May 22, 2013)` cr Purch Sales Net Open InterestIndex Futures 1,991 1,429 561 19,043

Stock Futures 1,835 2,102 (268) 29,443

Gainers / Losers

Gainers LosersCompany Price (`) chg (%) Company Price (`) chg (%)Berger Paints 249 4.3 Adani Power 56 (7.0)

Castrol India 343 3.8 DLF 227 (5.6)

Glaxosmithkl Cons 4,926 3.8 L&T 1,517 (5.6)

Tech Mahindra 943 3.6 Financial Tech 790 (5.3)

United Spirits 2,484 3.1 Future Retail 136 (5.0)

Domestic Indices Chg (%) (Pts) (Close)BSE Sensex (0.2) (49) 20,062

Nifty (0.3) (20) 6,095

MID CAP (0.8) (55) 6,493

SMALL CAP (0.8) (51) 6,109

BSE HC 0.4 37 8,960

BSE PSU (0.5) (36) 6,860

BANKEX (0.4) (65) 14,876

AUTO (0.4) (44) 11,053

METAL (0.6) (50) 8,685

OIL & GAS (1.0) (87) 8,795

BSE IT 0.1 8 6,038

Global Indices Chg (%) (Pts) (Close)Dow Jones (0.5) (80) 15,307NASDAQ (1.1) (39) 3,463

FTSE 0.5 36 6,840

Nikkei 1.6 246 15,627

Hang Sang (0.5) (105) 23,261

Straits Times 0.3 10 3,454

Shanghai Com (0.1) (2) 2,302

Indian ADR Chg (%) (Pts) (Close)INFY (1.1) (0.5) $43.1

WIT 0.5 0.0 $7.9IBN (0.4) (0.2) $46.8

HDB (1.8) (0.8) $41.2

Advances / Declines BSE NSEAdvances 867 440

Declines 1,449 949

Unchanged 130 89

Volumes (` cr)BSE 2,065

NSE 10,775

7/30/2019 Market Outlook, 23-05-13

2/20



Oil ministry gives in-principle nod to export parity pricingfor Petroleum products

Media reports suggest that the Oil ministry has given its in-principle nod to the

proposal of the finance ministry to price all the petroleum products on export parity

basis. Under the export parity system the price of the petroleum products will bebased on export prices. Under the current system of Import parity pricing the

import price consists of the import duty on crude and other transport costs which

leads to higher prices causing higher under-recoveries and a resultant higher

subsidy burden on the government. This move is however in line with our

expectation since we believed that the government may do something on similar

lines in order to reduce its fiscal deficit and since in the last couple of years Oil

Marketing companies (OMCs) have not borne any burden of under-recoveries,

this was expected to come. This move would be negative for the OMCs because

the export parity price is lower than the price which OMCs currently charge. In

case of the Upstream companies (ONGC & GAIL), this may not immediately

translate into lower subsidy burden because the government may change the

subsidy sharing ratio in order to reduce its own share of subsidy in a move to

control the fiscal deficit. We await further clarity on the exact timeline of the

implementation of the export parity pricing mechanism and till then maintain ourestimates on ONGC and GAIL.

Ranbaxy Labs - Under Drugs Controller General of India(DCGI) probeAfter the USFDA issue, Drug Controller General of India (DCGI) had been ordered

to examine all the dossiers and drug applications on the basis of which approvals

had been granted to Ranbaxy in the past. The future course of action would be

decided after DCGIs report, expected to come within a month.

According to the reports, DCGI has been asked to go through the US order in

detail and then examine the documents, dossiers and approvals to Ranbaxy in

India. The regulator will evaluate all documents to see whether there has been any

compromise in safety, quality, efficacy, or even in submitting data for seeking

approvals. Its understood that Ranbaxy could face severe penalty under the Drugs

and Cosmetics Act if it was found guilty of violation of any provision under Indian

law. According to the health ministry source, the drug regulator will initially study

the US courts order and the report of the US Food and Drug Administration (FDA)

and examine the period under their review primarily pre-2005 in the Indian

context.

Early last week, Ranbaxy, which pleaded guilty to making fraudulent statements to

the US FDA about how it tested drugs at two of its Indian plants, agreed to pay a

criminal fine and forfeiture totaling US $150mn and to settle civil claims for US

$350mn in order to resolve fraud allegations made in a whistle-blower's lawsuit

and federal criminal charges. This is the largest false claims case involving a

generics drugs manufacturer in the US. Ranbaxy, in papers filed in Federal court in

Baltimore, admitted it had sold batches of drugs that were improperly

manufactured, stored and tested.

While, the impact of the probe is not certain and will be certain only after the final

verdict on the issues, however the news will continue to be an overhang for the

stock. On the positive side the company has announced some of the major specific

7/30/2019 Market Outlook, 23-05-13

3/20



actions the Company has been taking in recent years to address certain conduct of

the past and to ensure the safety and efficacy of all Ranbaxy products currently

available in the global market. These actions include:

Enhancing its compliance procedures and policies Upgrading its business and manufacturing processes Building a culture of accountability and excellence across all levels of the

organization

Complete reconstitution of the Board of Directors and Executive Managementteam

With this development, the legal overhang on the stock continues and the outcomeof which will decide the future growth of the company. We maintain our neutral onthe stock.

JSW Steel reports subdued crude steel production for April2013

JSW Steel reported subdued crude steel production for the month of April 2013

due to annual shutdowns at their blast furnace facilities in Salem and Vijayanagar.

The crude steel production declined by 11.0% yoy to 0.64mn tonnes. The flat

rolled and long rolled steel production declined 13.0% and 17.0% yoy to 0.45mn

and 0.13mn tonnes respectively. The capacity utilization at Vijayanagar plant was

at 73% due to the annual maintenance shutdown. We maintain our Neutral viewon the stock.

Result Review

L&T (CMP:`1,517/ TP: Under review)

Larsen and Toubro (L&T) posted decent set of numbers for 4QFY2013, which were

broadly in-line with our expectation both on revenue and order inflows front.

However, owing to higher-than-anticipated other income and lower tax rate PAT

came in ahead of our estimate. On the top-line stood, L&T reported decent top-

line growth of 9.9% yoy to `20,294cr which was in-line with our estimate of

`20,303cr. The decent growth in revenues was mainly driven by pick up in

execution in the engineering and construction (E&C) and machinery & industrial

product segment. On the EBITDA front, performance was as per our expectations

with the company reporting a yoy dip of 180bp to 12.1% in 4QFY2013 against

our expectations of 12.0%. On the bottom line front, L&T reported PAT of`1,788cr

a decline of 6.9% and was higher than our estimate of `1,573cr. The PAT was

higher than our estimate mainly due to huge surge in other income and lower tax

rate. Other income grew 19.2% yoy to`374cr for the quarter.

As of 4QFY2013, L&Ts order backlog stands at `1,53,604cr (excluding slow

moving orders worth`17,000cr) registering a growth of 5.4% yoy. Order inflows

for the quarter came in at `27,929cr (up 24.7% yoy) against our expectation of

`23,000cr.

For FY2014, the management has given a guidance of 15-17% growth in revenue

and 20% growth in order inflow. The guidance is mainly based on (a) high share

7/30/2019 Market Outlook, 23-05-13

4/20



of exports in both order inflows and revenues (power T&D and hydrocarbon) and

(b) continued momentum in infrastructure segment (building and factories,

railways, airports, etc).

We believe L&T is best placed to benefit from the gradual recovery in the capexcycle, given its diverse exposure to sectors, strong balance sheet and cash flowgeneration as compared to peers. We continue to remain positive on L&T whileour target price is under review.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 68,396 10.5 4,768 77.9 15.5 19.5 2.9 14.0 1.5

FY2015E 77,435 10.5 5,465 89.2 15.7 17.0 2.5 12.5 1.3

Thermax (CMP:`589/ TP: -/ Upside: -)

For 4QFY2013, Thermax reported a 13% yoy decline in top-line to `1,468cr, asweak order inflow in last year (due to slowdown in investments) dragged down the

company's revenue. Energy segment reported 13.7% yoy decline in revenue to

`1,139cr while environment segment reported 16.8% yoy decline in revenue to

`349cr. However, company's EBITDA margin expanded by 60bp yoy to 10.2%. On

the bottom line front, net profit declined by 11.2% yoy to `115cr. Order backlog

stood at`4,878cr, almost flat yoy. We maintain our Neutral rating on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 5,931 9.6 369 31.0 18.6 19.0 3.3 10.8 0.9

FY2015E 6,592 9.7 409 34.3 17.9 17.2 2.9 9.4 1.0

Jyothy Laboratories (CMP:`175 / TP: Under review)

For 4QFY2012, Jyothy Laboratories (JLL) reported merged numbers of JLL and

Jyothy Consumer Products (JCPL). The companys topline grew by 24.5% yoy and

came in at `273cr against our estimate of `223cr. The revenue from soaps and

detergent segment witnessed a yoy growth of 25.7% and came in at`172cr, and

the revenue from home care segment registered a growth of 2.1% yoy and stood

at`84cr. The companys ad spend for 4QFY2013 stood at`22cr (8% of net sales).

The company reported a contraction in EBITDA margin of 425bp yoy 546bp qoqand stood at 12.4%. This was mainly due to the restructuring of distribution (~2%

EBITDA loss due to closing of 55 depots across country) and no selling of Ujala,

the flagship brand, for 45 days as the company was in process of changing the

packaging of Ujala (~5% EBITDA loss). The depreciation for the quarter stands at

`16cr which included `11cr of amortization of goodwill which has been

recognized in the books post the amalgamation of JLL and JCPL. Further, there is

no tax reported because after the amalgamation, the company has got a tax

shield due to the carry forward losses of JCPL. Consequently, the company

reported a profit of`14cr.

Given the successful amalgamation and restructuring, we remain positive on thecompany from a long term perspective. The stock is currently under review.

7/30/2019 Market Outlook, 23-05-13

5/20



Nagarjuna Construction Company (CMP:`34/ TP: Under review)

NCC posted poor set of numbers for 4QFY2013 below our and street

expectations. On the top line front, NCC reported revenues of `1,741cr in

4QFY2013, indicating a decline of 0.8% yoy, which was lower than our estimate

of `1,879cr. The poor execution was mainly due to slow moving orders anddeclining order book. On the EBITDAM front, owing to profit on from sale of real

estate asset the companys EBITDA margins grew by 320bp yoy to 9.0% (our

estimate was 8.5%) in 4QFY2013. Interest cost came in at `113cr a growth of

14.9% yoy. On the bottom line level, NCC reportedayoy growth of 151.9% to

`27cr, lower than our and consensus estimate owing to lower-than-expected

revenue performance and higher tax rate (45%). The current outstanding order

book of NCC stands at `18,555cr as on 4QFY2013, with order inflows of

~`4,000cr for the full year. We continue to remain positive on the stock with Buyrating on it. The target price is currently under review.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 6,576 8.2 105 4.1 4.2 8.6 0.4 6.2 0.5

FY2015E 7,264 8.2 122 4.8 4.7 7.4 0.3 5.9 0.5

Prakash Industries (CMP: `37/ TP: `48/ Upside: 30%)

Prakash Industries reported disappointing profitability performance for 4QFY2013

due to higher costs. Its net sales decreased by 4.3% yoy to `602cr in 4QFY2013

whereas its EBITDA margin dipped by 368bp yoy to 13.3% on account of sharp

rise in input costs and other expenses. EBITDA also dipped by 25.0% yoy to `80cr.

Depreciation increased by 15.9% yoy to`27cr and the Interest expenses increased

by 132.8% yoy to `15cr in 4QFY2013. Consequently, net profit decreased

by 48.9% yoy to`39cr. We maintain our Buy rating on the stock with a target priceof `48.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 2,668 10.0 68 4.6 3.2 8.1 0.2 4.8 0.5

FY2015E 2,834 10.0 75 5.2 3.4 7.2 0.2 4.6 0.5

TVS Srichakra (CMP:`185 / TP:`252 / Upside: 36%)

For 4QFY2013, TVS Srichakra (TVSSL) registered a topline growth of 5.9% yoy to

`368cr, in line with our estimate of`366cr. The major disappointment came at the

operating margin front which contracted by 317bp on yoy basis to 4.2%,

significantly lower than our estimate of 7.1%. This was attributable to the higher

employee cost and other expenses as a percentage of net sales. The company

reported an other income of`48cr in the quarter, which majorly consisted of one

time income of `37cr (`25.5cr from profit on sale of assets and `11.5cr from

profit on sale of investments). It paid a tax of`11cr. The company reported a profit

of `34cr in the quarter. However, if we exclude the one time other income of

`37cr, the company reported a loss of`3cr.

On annual basis, the company registered a topline growth of 4.8% and reported a

net sales of `1,463cr in line with our expectation of `1,461cr. The operating

7/30/2019 Market Outlook, 23-05-13

6/20



margin for FY2013 stood at only 4.9% against our estimate of 5.6%. The company

reported a profit of`36cr, however if we exclude the other income of`37cr, then it

would have a loss of`1cr against our estimation of a profit of`5cr.

However, we expect that the companys sales and operating margin will improve

by FY2015E with the expected recovery in the demand for two wheelers and slightsoftening in the rubber price. The company has recommended a dividend of `7.5

per share. At the CMP, the stock is trading at a PE of 4.4x on FY2015E earnings.

On account of the low valuation, we recommend Buy on the stock with a targetprice of `252 based on a target PE of 6.0x for FY2015E.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 1,591 6.1 19 24.5 10.9 7.6 0.8 4.5 0.3

FY2015E 1,739 6.6 32 41.9 17.2 4.4 0.7 3.8 0.2

Subros(CMP:`27/ TP:`30/ Upside: 12%)For 4QFY2013, Subros posted revenue de-growth of 5.8% yoy to `348cr, as

volumes declined by 1.5% yoy, while realizations came in lower by 4.4% yoy. The

EBITDA margin for the company declined by 196bp yoy to 9.5%, primarily due to

36.1% yoy increase in staff costs. On a sequential basis too, it declined by 76bp.

Hence, operating profit de-grew by 21.9% yoy to `33cr. The company reported

other income of`10cr during the quarter, which was almost nil in 4QFY2012. The

reported net profit came in at `9cr as against `35cr in 4QFY2012 (which was

boosted by extraordinary gains of around`29cr), hence on an adjusted basis, net

profit stood at`

9cr as against`

6cr in 4QFY2012, a growth of 43.1% yoy. At CMP,the stock is trading at 3.5x FY2015E earnings. We maintain our Accumulate ratingon the stock with a target price of `35.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 1,426 10.0 29 4.9 10.0 4.8 0.5 3.7 0.3

FY2015E 1,624 9.9 41 6.8 12.7 3.5 0.5 3.2 0.3

Result Preview

SBI (CMP:`2,364/ TP:`2,669/ Upside: 12.9%)

State Bank of India is slated to announce its 4QFY2013 results today. The Net

interest income (NII) is expected to decline by 2.6% yoy to`11,401cr. Non-interest

income is also expected to decline by 2.9% yoy to `5,110cr. The operating

expenses of the bank are expected to increase by 20.8% yoy to `8,908cr (as the

bank is expected to provide for wage revision around `1,000cr during the

quarter). The operating profit is expected to decline by 20.8% yoy to`7,603cr and

the net profit is expected to decline by 17.1% yoy to `3,359cr. At the current

market price, the stock trades at a valuation of 1.3x FY2015E P/ABV. We maintainour Accumulate recommendation on the stock, with a target price of `2,669.

7/30/2019 Market Outlook, 23-05-13

7/20



Y/E Op. Inc NIM PAT EPS ABV ROA ROE P/E P/ABVMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 67,091 3.2 16,500 241.2 1,550.1 1.0 16.5 9.8 1.5

FY2015E 76,746 3.1 19,182 280.4 1,794.2 1.0 17.0 8.4 1.3

BHEL (CMP:`203 / TP: - / Upside: - %)

We expect Bharat Heavy Electricals (BHEL) to post a 4% yoy decline in top-line to

`18,805cr for 4QFY2013 as industrial slowdown continues to delay execution. On

the EBITDA front, the company's margin is expected to fall by 480bp yoy to 20.4%.

Consequently, we expect PAT to decline by 23.8% yoy to `2,575cr. We maintainour Neutral recommendation on the stock as we expect tepid order inflow tocontinue for next year as well.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 43,757 17.3 5,113 20.9 23.7 9.7 2.1 5.8 1.0

FY2015E 40,934 16.9 4,642 19.0 18.8 10.7 1.9 5.9 1.0

Tata Steel (CMP:`306/ TP:`430/ Upside: 41%)

Tata Steel is expected to report its consolidated 4QFY2013 results. We expect the

company to post a muted net sales growth of 3.9% yoy to `35,323cr mainly on

account of poor performance from European operations. EBITDA margin is

expected to decline by 111bp yoy to 8.2%. The net profit is however expected to be

increase by 16.4% to `683cr. We maintain our Buy rating on the stock with atarget price of `430.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 140,917 10.0 2,875 29.6 8.4 10.3 0.8 6.0 0.6

FY2015E 151,537 11.3 5,011 51.6 12.9 5.9 0.7 4.8 0.5

JSW Steel (CPM:`685/ TP: -/ Upside : -)

JSW Steel is slated to announce its 4QFY2013 results today. We expect its

standalone net sales to decline by 7.7% yoy to `8,779cr mainly on account of

lower realizations. The operating margin is expected to contract by 240bp yoy to

15.0% mainly on account of higher costs. Net profit is also expected to decrease

by 51.0% yoy to`271cr. We maintain our Neutral view on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 39,440 18.0 1,861 83.4 9.0 8.2 0.7 3.6 0.7

FY2015E 41,447 17.7 2,129 95.4 9.5 7.2 0.7 3.0 0.5

7/30/2019 Market Outlook, 23-05-13

8/20



Quarterly Bloomberg Brokers Consensus Estimate

BHEL (23/05/2013)Particulars (` cr) 4QFY13E 4QFY12 y-o-y (%) 3QFY13 q-o-q (%)Net sales 18,463 19,260 (4) 10,042 84

EBITDA 4,117 4,937 (17) 1,634 152EBITDA margin (%) 22.3 25.6 16.3

Net profit 2,759 3,380 (18) 1,182 133

JSW Steel Consolidated (23/05/2013)Particulars (` cr) 4QFY13E 4QFY12 y-o-y (%) 3QFY13 q-o-q (%)Net sales 9,135 10,153 (10) 8,866 3

EBITDA 1,544 1,887 (18) 1,331 16

EBITDA margin (%) 16.9 18.6 15.0

Net profit 359 770 (53) 195 84

State Bank of India (23/05/2013)Particulars (` cr) 4QFY13E 4QFY12 y-o-y (%) 3QFY13 q-o-q (%)Net profit 3,730 4,050 (8) 3,396 10

Tata Steel Consolidated (23/05/2013)Particulars (` cr) 4QFY13E 4QFY12 y-o-y (%) 3QFY13 q-o-q (%)Net sales 34,854 33,860 3 31,822 10

EBITDA 3,251 3,179 2 2,239 45

EBITDA margin (%) 9.3 9.4 7.0

Net profit 446 434 3

(763)

(158)

Crompton Greaves Consolidated (24/05/2013)Particulars (` cr) 4QFY13E 4QFY12 y-o-y (%) 3QFY13 q-o-q (%)Net sales 3,333 3,077 8 2,972 12

EBITDA 169 213 (21) 2 8303


Net profit 74 100 (26)(189)

(139)

Bharat Forge (25/05/2013)Particulars (` cr) 4QFY13E 4QFY12 y-o-y (%) 3QFY13 q-o-q (%)Net sales 708 956 (26) 661 7

EBITDA 155 251 (38) 142 8

EBITDA margin (%) 21.8 26.3 21.6

Net profit 55 55 (1) 48 15

Tata Chemical Consolidated (27/05/2013)Particulars (` cr) 4QFY13E 4QFY12 y-o-y (%) 3QFY13 q-o-q (%)Net sales 3,673 3,398 8 4,171 (12)

EBITDA 527 541 (3) 536 (2)

EBITDA margin (%) 14.3 15.9 12.9

Net profit 199 189 5 224 (11)

7/30/2019 Market Outlook, 23-05-13

9/20



Colgate (28/05/2013)Particulars (` cr) 4QFY13E 4QFY12 y-o-y (%) 3QFY13 q-o-q (%)Net sales 797 686 16 763 4

EBITDA 181 170 7 150 21

EBITDA margin (%) 22.7 24.8 19.7

Net profit 141 131 8 111 27

DLF Consolidated (28/05/2013)Particulars (` cr) 4QFY13E 4QFY12 y-o-y (%) 3QFY13 q-o-q (%)Net sales 2,053 2,617 (22) 1,310 57

EBITDA 794 798 (0) 87 812

EBITDA margin (%) 38.7 30.5 6.6

Net profit 156 212 (26) 285 (45)

Gail (28/05/2013)Particulars (` cr) 4QFY13E 4QFY12 y-o-y (%) 3QFY13 q-o-q (%)Net sales 11,737 10,455 12 12,474 (6)

EBITDA 1,439 768 87 2,002 (28)

EBITDA margin (%) 12.3 7.3 16.0

Net profit 853 483 76 1,285 (34)

Hindalco Industries (28/05/2013)Particulars (` cr) 4QFY13E 4QFY12 y-o-y (%) 3QFY13 q-o-q (%)Net sales 7,016 7,563 (7) 6,790 3

EBITDA 626 865 (28) 582 8


Net profit 378 640 (41) 434 (13)

HPCL (28/05/2013)Particulars (` cr) 4QFY13E 4QFY12 y-o-y (%) 3QFY13 q-o-q (%)Net sales 55,821 52,394 7 52,751 6

EBITDA 7,148 5,516 30 1,051 580

EBITDA margin (%) 13 11 2

Net profit 6,240 4,631 35 147 4142

NHPC (28/05/2013)Particulars (` cr) 4QFY13E 4QFY12 y-o-y (%) 3QFY13 q-o-q (%)Net sales 1,138 1,386 (18) 912 25

EBITDA 667 994 (33) 614 9

EBITDA margin (%) 58.7 71.8 67.3

Net profit 439 802 (45) 312 41

Power Grid Corporation (28/05/2013)Particulars (` cr) 4QFY13E 4QFY12 y-o-y (%) 3QFY13 q-o-q (%)Net profit 1,116 1,032 8 1,129 (1)

7/30/2019 Market Outlook, 23-05-13

10/20



Rural Electrification (28/05/2013)Particulars (` cr) 4QFY13E 4QFY12 y-o-y (%) 3QFY13 q-o-q (%)Net profit 1,012 763 33 1,027 (1)

Sun Pharmaceutical Consolidated (28/05/2013)Particulars (` cr) 4QFY13E 4QFY12 y-o-y (%) 3QFY13 q-o-q (%)Net sales 2,992 2,330 28 2,852 5

EBITDA 1,285 963 33 1,275 1

EBITDA margin (%) 42.9 41.3 44.7

Net profit 912 820 11 881 3

Tata Global Beverage Consolidated (28/05/2013)Particulars (` cr) 4QFY13E 4QFY12 y-o-y (%) 3QFY13 q-o-q (%)Net sales 1,890 1,724 10 1,902 (1)

EBITDA 199 187 6 203 (2)

EBITDA margin (%) 10.5 10.9 10.7Net profit 99 54 83 80 24

Economic and Political News

8% growth possible if UPA is voted to power again: PM Finance Minister agrees to`1lakh cr diesel, LPG subsidy for FY2013 Government further cuts import tariff value of goldCorporate News

Emami bags two international awards for packaging Oracle Financial to raise up to US$181mn through share sale Reliance Jio to roll out 4G services in metros by March 2014 SAIL spends`44,536cr on capex in 7 yrs

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

7/30/2019 Market Outlook, 23-05-13

11/20

Date Company

May 23, 2013 St Bk of India, BHEL, Tata Steel, JSW Steel , Indraprasth Gas, LMW, Jyothy Laboratories

May 24, 2013 Crompton Greaves, Britannia, SpiceJet

May 25, 2013 Bharat Forge, MOIL, Sarda Energy, Consolidated Co, Siyaram Silk Mills, Force Motors

May 26, 2013

May 27, 2013 Nalco, Tata Chemicals, Bhushan Steel, Bajaj Electrical, GIPCL, TTK Healthcare, Tree House

May 28, 2013GAIL, Sun Pharma, Power Grid Corpn, NHPC, Hindalco, Rural Elec.Corp., Colgate, HPCL, Tata Global, Tata Comm,CESC, Jagran Prakashan, Indoco Remedies, Dishman Pharma, PVR, Cravatex

May 29, 2013ONGC, NMDC, Tata Motors, BPCL, Cipla, Canara Bank, Mphasis, HDIL, Monnet Ispat, BGR Energy , Anant Raj,Madhucon Proj, Jyoti Structures, J K Lakshmi Cements, Greenply

May 30, 2013IOC, M&M, SAIL, DLF, Tata Power Co., Power Fin.Corpn., Cadila Healthcare, GMR Infra., Unitech, Central Bank,Suzlon Energy, GSPL, Aurobindo Pharma, Ipca labs, Page Industries, Madras Cements, Sadbhav Engg., Simplex Infra,IVRCL Infra, Patel Engg.

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Time Country Event Description Unit Period Bloomberg DataLast Reported Estimated

May 23, 2013 6:00PM US Initial Jobless claims Thousands May 18 360.00 345.00

1:00PM Germany PMI Services Value May A 49.60 50.00

1:00PM Germany PMI Manufacturing Value May A 48.10 48.50

2:00PM UK GDP (YoY) % Change 1Q P 0.60 0.60

7:30PM Euro Zone Euro-Zone Consumer Confidence Value May A (22.30) (21.80)

7:30PM US New home sales Thousands Apr 417.00 425.00

May 24, 2013 11:30AM Germany GDP nsa (YoY) % Change 1Q F (1.40) (1.40)

May 28, 2013 7:30PM US Consumer Confidence S.A./ 1985=100 May 68.10 70.00

May 29, 2013 1:25PM Germany Unemployment change (000's) Thousands May 4.00 --

May 30, 2013 6:00PM US GDP Qoq (Annualised) % Change 1Q S 2.50 2.50

May 31, 2013 11:00AM India Qtrly GDP YoY% % Change 1Q 4.50 4.80

June 1, 2013 6:30AM China PMI Manufacturing Value May 50.60 --

June 3, 2013 2:00PM UK PMI Manufacturing Value May 49.80 --

June 5, 2013 2:30PM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 1Q P (0.20) --

June 6, 2013 4:30PM UK BOE Announces rates % Ratio Jun 6 0.50 0.50

5:15PM Euro Zone ECB announces interest rates % Jun 6 0.50 --

June 7, 2013 6:00PM US Change in Nonfarm payrolls Thousands May 165.00 --

6:00PM US Unnemployment rate % May 7.50 --

June 8, 2013 4:29PM China Exports YoY% % Change May 14.70 --

June 9, 2013 7:00AM China Consumer Price Index (YoY) % Change May 2.40 --

11:00AM China Industrial Production (YoY) % Change May 9.30 --

June 10, 2013 4:29PM India Imports YoY% % Change May 10.96 --

4:29PM India Exports YoY% % Change May 1.68 --

June 11, 2013 2:00PM UK Industrial Production (YoY) % Change Apr (1.40) --

June 12, 2013 2:00PM UK Jobless claims change % Change May (7.30) --

11:00AM India Industrial Production YoY % Change Apr 2.50 --

June 14, 2013 2:30PM Euro Zone Euro-Zone CPI (YoY) % May F 1.20 --

6:00PM US Producer Price Index (mom) % Change May (0.70) --

6:45PM US Industrial Production % May (0.53) --

12:00PM India Monthly Wholesale Prices YoY% % Change May 4.89 --


May 23, 2013

Market Outlook

7/30/2019 Market Outlook, 23-05-13

12/20



Macro watch

Exhibit 1:Q uarterly G D P trends

Source: CSO, Angel Research

Exhibit 2:IIP trends

Source: MOSPI, Angel Research

Exhibit 3:M onthly WPI inflation trends

Source: MOSPI, Angel Research

Exhibit 4:M a nufacturing a nd services PM I

Source: Ma rket, Angel Research; N ote: Level above 50 ind icates expansion

Exhibit 5:Expo rts an d impo rts growth trends


Exhibit 6:Key policy rates

Source: RBI, Angel Research

5.7

9.0

7.5

11.2

8.5

7.68.2

9.2

7.5

6.56.0

5.3 5.5 5.34.5

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

(%)

(1.3)

2.5

(2.0)

(0.1)

2.0

(0.7)

8.4

(1.0) (0.6)

2.4

0.5

2.5

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

Apr-12

May-1

2

Jun-1

2

Jul-12

Aug-1

2

Sep-1

2

Oc-1

2

No-1

2

Dec-1

2

Jan-1

3

Feb

-13

Mar-13

(%)

7.6 7.6 7.58.0 8.1

7.3 7.2 7.3 7.36.8

6.0

4.9

0.01.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

(%)

48.0

50.0

52.0

54.0

56.0

58.0

Feb

-12

Mar-12

Apr-12

May-1

2

Jun-1

2

Jul-12

Aug-1

2

Sep-1

2

Oc-1

2

Nov-1

2

Dec-1

2

Jan-1

3

Feb

-13

Mar-13

Apr-13

Mfg. PMI Services PMI

(15.0)

0.0

15.0

Ma

-12

Jun-12

Jul-12

Aug-12

Sep-12

Oc-12

Nov-12

Dec-12

Jan-13

Feb-13

Ma-13

Apr-13

Exports yoy growth Imports yoy growth(%)

7.50

6.50

4.003.00

4.00

5.00

6.00

7.00

8.00

9.00

Apr-12

Ma-1

2

Jun-1

2

Jul-12

Aug-1

2

Sep-1

2

Oc-1

2

No-1

2

Dec-1

2

Jan-1

3

Feb

-13

Mar-13

Repo rate Reverse Repo rate CRR(%)

7/30/2019 Market Outlook, 23-05-13

13/20

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

Agri / Agri Chemical

Rallis Neutral 140 - 2,719 1,657 1,906 14.1 14.1 7.7 8.9 18.2 15.7 3.8 3.2 22.2 21.9 1.6 1.3

United Phosphorus Buy 156 232 6,885 10,298 11,310 16.5 16.5 20.5 23.2 7.6 6.7 1.3 1.1 18.0 17.4 0.6 0.5

Auto & Auto Ancillary

Amara Raja Batteries Accumulate 245 285 4,181 3,418 3,892 14.5 14.5 18.5 20.4 13.3 12.0 3.2 2.6 26.6 23.8 1.3 1.1

Apollo Tyres Accumulate 89 104 4,488 13,852 15,487 11.4 11.5 12.8 14.9 6.9 6.0 1.1 1.0 17.5 17.3 0.5 0.4

Ashok Leyland Accumulate 23 27 6,146 14,038 16,442 7.6 8.7 1.1 2.2 22.1 10.4 1.9 1.7 6.2 12.5 0.5 0.4

Automotive Axle# Neutral 260 - 393 834 965 9.3 10.6 17.3 27.1 15.1 9.6 1.4 1.3 9.5 14.0 0.6 0.5Bajaj Auto Accumulate 1,851 2,056 53,553 22,684 25,908 18.0 18.5 117.3 137.1 15.8 13.5 5.7 4.5 39.9 37.2 2.0 1.7

Bharat Forge Neutral 229 - 5,339 6,198 6,793 14.6 14.9 14.5 17.3 15.8 13.3 2.1 1.9 13.6 14.7 1.0 0.9

Bosch India* Neutral 9,150 - 28,729 9,821 11,394 17.0 17.3 373.5 438.7 24.5 20.9 4.4 3.7 18.0 17.9 2.6 2.2

CEAT Buy 111 170 379 5,325 5,974 8.4 8.3 40.8 48.5 2.7 2.3 0.4 0.4 17.3 17.6 0.2 0.2

Exide Industries Accumulate 140 150 11,904 7,053 8,061 14.2 14.5 7.8 9.1 17.9 15.3 3.0 2.6 18.1 18.2 1.4 1.2

FAG Bearings* Neutral 1,466 - 2,436 1,525 1,742 14.5 15.7 88.4 109.5 16.6 13.4 2.4 2.1 15.5 16.5 1.4 1.2

Hero Motocorp Accumulate 1,651 1,819 32,965 25,274 27,658 14.1 13.7 110.2 139.9 15.0 11.8 5.5 4.3 39.8 40.7 1.1 1.0

JK Tyre Buy 115 154 473 7,972 8,754 7.1 7.1 37.5 44.0 3.1 2.6 0.5 0.4 16.4 16.6 0.3 0.3

Mahindra and Mahindra Neutral 991 - 60,861 44,550 50,260 11.4 11.7 59.6 68.3 16.6 14.5 3.4 2.9 22.3 21.6 1.1 1.0

Maruti Accumulate 1,687 1,847 50,973 48,455 55,723 11.2 10.9 107.8 123.2 15.7 13.7 2.4 2.0 16.2 16.0 0.9 0.8

Motherson Sumi Neutral 218 - 12,807 28,442 31,493 7.5 7.8 12.5 14.8 17.4 14.7 4.3 3.4 27.5 25.8 0.6 0.5

Subros Accumulate 27 30 160 1,479 1,685 10.0 9.9 5.5 7.5 4.9 3.6 0.5 0.5 11.1 13.7 0.4 0.3

Tata Motors Accumulate 292 324 77,727 206,341 227,695 12.8 13.5 32.3 39.0 9.0 7.5 1.9 1.6 23.1 23.2 0.5 0.4

TVS Motor Neutral 38 - 1,798 7,715 8,584 6.0 6.1 5.0 5.8 7.6 6.5 1.3 1.1 18.1 18.5 0.2 0.1

Capital Goods

ABB* Sell 644 461 13,652 8,073 9,052 5.5 6.9 11.5 16.9 55.9 38.0 5.1 4.9 9.3 13.1 1.7 1.5BGR Energy Neutral 198 - 1,429 4,114 4,886 11.4 10.7 24.9 28.0 8.0 7.1 1.1 1.0 25.2 22.6 0.7 0.6

BHEL Neutral 203 - 49,784 43,757 40,934 17.3 16.9 20.9 19.0 9.7 10.7 2.1 1.9 23.7 18.8 1.0 1.0

Blue Star Buy 168 230 1,511 2,896 3,087 5.6 6.2 9.3 11.7 18.1 14.3 3.0 2.6 17.6 19.2 0.6 0.5

Crompton Greaves Accumulate 108 117 6,951 13,790 15,095 6.4 7.4 6.9 9.4 15.7 11.6 1.8 1.6 11.7 14.5 0.5 0.5

Jyoti Structures Accumulate 29 34 239 3,074 3,355 9.0 8.8 8.7 10.2 3.3 2.9 0.3 0.3 10.4 11.1 0.3 0.2

KEC International Buy 46 63 1,180 7,709 8,399 6.7 7.2 6.1 8.5 7.6 5.4 1.0 0.8 20.2 23.0 0.3 0.3

Thermax Neutral 589 - 7,012 5,931 6,592 9.6 9.7 31.0 34.3 19.0 17.2 3.3 2.9 18.6 17.9 1.0 0.9

Cement

ACC Accumulate 1,222 1,361 22,943 11,979 13,254 19.7 21.3 77.1 91.4 15.9 13.4 2.8 2.5 18.7 20.0 1.7 1.4


Market Outlook

Stock Watch

May 23, 2013

7/30/2019 Market Outlook, 23-05-13

14/20



Cement

Ambuja Cements Neutral 186 - 28,756 10,232 11,762 23.5 24.5 10.3 12.2 18.1 15.3 3.0 2.7 17.2 18.6 2.3 1.9

India Cements Neutral 76 - 2,336 4,777 5,276 17.3 17.1 8.8 10.9 8.6 7.0 0.6 0.6 7.5 8.8 0.9 0.8

J K Lakshmi Cement Buy 101 143 1,186 2,313 2,728 19.8 20.7 16.6 23.1 6.1 4.4 0.8 0.7 13.6 16.5 1.1 0.9

Madras Cements Neutral 250 - 5,956 4,293 4,855 27.4 28.6 21.8 28.2 11.5 8.9 2.1 1.7 19.6 21.3 1.8 1.5

Shree Cement^ Neutral 4,918 - 17,132 6,540 7,452 27.4 26.6 319.7 369.9 15.4 13.3 3.8 3.0 27.5 25.4 2.0 1.6

UltraTech Cement Neutral 1,953 - 53,560 21,947 25,049 23.8 23.8 106.1 119.8 18.4 16.3 3.0 2.6 17.7 17.3 2.6 2.2

ConstructionAshoka Buildcon Buy 204 255 1,072 1,928 2,234 21.0 21.5 18.0 22.2 11.3 9.2 1.0 0.9 10.2 10.1 2.0 1.9

Consolidated Co Neutral 12 - 215 2,281 2,492 5.9 6.9 0.7 2.0 17.1 5.8 0.4 0.4 2.3 6.5 0.4 0.3

IRB Infra Buy 123 157 4,101 3,997 4,312 45.5 46.4 15.7 16.6 7.9 7.4 1.1 1.0 15.2 14.5 3.5 3.8

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 21 35 637 6,287 6,836 8.5 8.5 2.3 3.0 8.9 6.8 0.3 0.3 3.4 4.2 0.6 0.5

Jaiprakash Asso. Accumulate 73 90 16,288 14,850 15,631 24.9 25.1 2.5 2.9 29.0 25.7 1.2 1.1 4.2 4.7 3.0 2.9

Larsen & Toubro Accumulate 1,517 1,795 93,427 69,586 79,247 11.2 11.1 75.1 84.9 20.2 17.9 2.9 2.5 15.2 15.0 1.6 1.4

Nagarjuna Const. Buy 34 45 881 6,576 7,264 8.2 8.3 4.1 4.8 8.4 7.2 0.3 0.3 4.2 4.7 0.5 0.5

Punj Lloyd Neutral 48 - 1,597 12,954 14,740 9.9 9.9 0.5 0.9 94.8 51.6 0.6 0.6 0.6 1.1 0.6 0.5

Sadbhav Engg. Buy 109 153 1,645 2,511 2,736 10.6 10.6 7.3 7.8 15.0 14.0 1.9 1.7 13.3 12.7 0.9 0.8

Simplex Infra Buy 106 164 525 6,824 7,563 9.2 9.4 18.0 23.4 5.9 4.5 0.4 0.4 6.9 8.3 0.5 0.4

Unity Infra Buy 32 45 238 2,455 2,734 13.4 13.0 14.6 14.9 2.2 2.2 0.3 0.2 12.3 11.3 0.5 0.5

Financials

Allahabad Bank Accumulate 125 149 6,225 7,137 7,907 2.9 2.8 32.3 36.0 3.9 3.5 0.6 0.5 14.2 14.2 - -

Andhra Bank Neutral 90 - 5,022 5,254 5,900 2.8 2.8 21.2 22.9 4.2 3.9 0.6 0.6 13.3 13.0 - -

Axis Bank Buy 1,514 1,853 70,953 19,055 22,710 3.3 3.2 130.7 152.3 11.6 9.9 1.9 1.6 17.2 17.6 - -Bank of Baroda Buy 714 851 30,057 16,365 18,781 2.2 2.3 121.3 142.5 5.9 5.0 0.9 0.8 15.1 15.7 - -

Bank of India Accumulate 316 361 18,836 14,482 16,383 2.3 2.3 58.1 68.1 5.4 4.6 0.8 0.7 14.4 15.0 - -

Bank of Maharashtra Accumulate 59 62 3,873 4,451 4,792 3.2 3.0 13.2 14.1 4.4 4.1 0.7 0.6 17.5 16.5 - -

Canara Bank Neutral 442 - 19,578 11,928 13,467 2.1 2.2 74.8 86.0 5.9 5.1 0.8 0.7 13.7 14.2 - -

Central Bank Neutral 70 - 7,270 8,249 9,211 2.4 2.5 14.9 18.2 4.7 3.8 0.7 0.6 12.5 13.8 - -

Corporation Bank Accumulate 416 476 6,364 5,558 6,121 2.0 2.0 98.4 107.7 4.2 3.9 0.6 0.6 14.9 14.5 - -

Dena Bank Neutral 90 - 3,161 3,187 3,582 2.3 2.4 23.8 25.5 3.8 3.5 0.6 0.5 15.9 15.1 - -

Federal Bank Neutral 463 - 7,918 2,873 3,413 3.0 3.1 52.7 62.0 8.8 7.5 1.1 1.0 13.4 14.2 - -


Market Outlook

Stock Watch

May 23, 2013

7/30/2019 Market Outlook, 23-05-13

15/20



Financials

HDFC Neutral 898 - 138,968 8,573 10,142 3.6 3.6 37.0 43.6 24.3 20.6 5.0 4.5 30.0 30.3 - -

HDFC Bank Neutral 703 - 167,490 27,682 33,916 4.6 4.6 35.3 42.7 19.9 16.5 3.9 3.3 21.3 21.8 - -

ICICI Bank Buy 1,210 1,444 139,617 25,705 30,330 3.1 3.2 83.9 96.3 14.4 12.6 1.9 1.7 15.2 15.7 - -

IDBI Bank Neutral 88 - 11,695 9,477 10,678 2.0 2.1 19.6 22.6 4.5 3.9 0.6 0.5 12.8 13.4 - -

Indian Bank Buy 156 186 6,696 6,185 6,978 3.0 3.0 37.0 42.2 4.2 3.7 0.6 0.6 14.8 15.1 - -

IOB Neutral 62 - 5,734 8,142 8,956 2.5 2.5 16.5 20.7 3.8 3.0 0.5 0.4 11.8 13.4 - -

J & K Bank Neutral 1,272 - 6,166 3,032 3,118 3.8 3.5 218.1 200.9 5.8 6.3 1.1 1.0 19.9 16.0 - -LIC Housing Finance Accumulate 276 290 13,916 2,113 2,525 2.3 2.3 25.4 29.2 10.9 9.4 1.9 1.7 18.4 18.3 - -

Oriental Bank Neutral 263 - 7,670 6,835 7,588 2.6 2.6 56.5 63.8 4.7 4.1 0.6 0.6 13.1 13.4 - -

Punjab Natl.Bank Buy 807 994 28,538 20,876 23,929 3.3 3.4 151.7 177.0 5.3 4.6 0.9 0.7 16.1 16.5 - -

South Ind.Bank Neutral 25 - 3,331 1,839 2,091 2.9 2.8 4.2 4.5 5.9 5.5 1.0 0.9 18.2 17.0 - -

St Bk of India Accumulate 2,364 2,669 161,726 67,091 76,746 3.2 3.1 241.2 280.4 9.8 8.4 1.5 1.3 16.5 17.0 - -

Syndicate Bank Neutral 131 - 7,867 7,238 8,249 2.7 2.6 27.1 30.4 4.8 4.3 0.7 0.7 16.1 15.9 - -

UCO Bank Neutral 77 - 5,814 6,126 6,665 2.6 2.5 12.2 14.4 6.3 5.4 1.0 0.8 11.8 12.6 - -

Union Bank Accumulate 230 260 1 3,741 11,229 12,794 2.6 2.6 40.7 48.2 5.7 4.8 0.8 0.7 14.6 15.4 - -

United Bank Accumulate 58 64 2,168 3,597 4,008 2.6 2.7 16.0 20.8 3.6 2.8 0.4 0.4 12.5 14.7 - -

Vijaya Bank Neutral 53 - 2,604 2,730 3,059 1.9 2.0 10.2 11.3 5.2 4.6 0.6 0.6 11.8 12.0 - -

Yes Bank Neutral 511 - 18,324 4,390 5,411 2.8 2.8 41.6 47.9 12.3 10.7 2.6 2.2 23.2 22.1 - -

FMCG

Asian Paints Neutral 4,832 - 46,349 12,332 14,524 16.5 16.3 141.6 162.7 34.1 29.7 10.8 8.6 35.4 32.2 3.6 3.0

Britannia Neutral 565 - 6,757 6,417 7,446 5.1 5.5 20.3 25.2 27.9 22.5 9.5 7.5 37.4 37.3 1.0 0.8

Colgate Neutral 1,414 - 19,224 3,588 4,130 21.1 21.6 44.7 51.9 31.6 27.3 28.5 21.2 100.0 89.1 5.2 4.5

Dabur India Neutral 157 - 27,399 7,183 8,340 16.8 16.8 5.4 6.3 29.3 25.0 11.4 8.9 41.5 40.1 3.7 3.2

GlaxoSmith Con* Neutral 4,926 - 20,716 3,617 4,260 16.1 16.4 120.6 146.4 40.8 33.6 12.6 10.2 33.8 33.4 5.2 4.4

Godrej Consumer Neutral 838 - 28,504 7,801 9,017 16.2 15.9 25.1 29.7 33.3 28.2 7.2 6.0 24.9 24.2 3.8 3.3

HUL Neutral 585 - 126,569 29,167 33,164 13.6 13.7 17.1 18.4 34.3 31.8 32.9 23.8 113.4 87.0 4.2 3.7

ITC Neutral 336 - 265,344 33,506 39,067 36.8 37.0 11.1 13.0 30.3 25.9 9.8 8.0 35.5 34.1 7.6 6.4

Marico Neutral 219 - 14,088 5,273 6,044 14.8 14.9 7.3 8.7 30.1 25.2 5.9 4.8 21.4 21.0 2.7 2.3

Nestle* Neutral 5,220 - 50,329 9,447 10,968 22.1 22.3 127.5 154.1 41.0 33.9 20.5 14.8 57.7 50.7 5.2 4.4

Tata Global Neutral 143 - 8,821 7,998 8,798 9.7 9.8 7.9 8.7 18.1 16.4 2.2 2.1 9.6 9.8 1.0 0.9


Market Outlook

Stock Watch

May 23, 2013

7/30/2019 Market Outlook, 23-05-13

16/20



IT

HCL Tech^ Buy 743 863 51,746 28,633 32,216 21.5 20.7 57.3 61.7 13.0 12.0 3.1 2.6 24.0 21.5 1.6 1.3

Hexaware* Buy 78 96 2,316 2,091 2,289 19.0 18.8 10.6 11.3 7.3 6.8 1.6 1.5 22.8 21.7 0.9 0.8

Infosys Neutral 2,388 - 137,148 43,338 47,244 27.5 27.7 169.4 182.6 14.1 13.1 2.9 2.5 20.8 19.3 2.5 2.2

Infotech Enterprises Accumulate 165 185 1,842 1,956 2,174 17.9 17.7 20.4 21.9 8.1 7.5 1.2 1.0 14.7 13.7 0.6 0.4

KPIT Cummins Buy 111 135 2,144 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 Buy 110 126 12,957 8,456 9,385 19.3 19.1 10.6 11.9 10.4 9.3 2.3 1.9 22.4 20.1 1.1 0.9

Mindtree Accumulate 815 920 3,385 2,599 2,871 19.4 19.2 85.2 92.3 9.6 8.8 2.0 1.6 21.4 18.9 1.0 0.8Mphasis& Reduce 452 395 9,487 6,096 6,646 17.6 17.4 38.1 41.6 11.9 10.9 1.7 1.5 14.2 13.7 1.0 0.8

NIIT Buy 22 30 357 1,144 1,267 9.0 9.1 4.3 5.4 5.0 4.0 0.5 0.5 10.3 12.0 0.1 -

Persistent Buy 514 593 2,056 1,445 1,617 25.2 25.0 55.3 59.3 9.3 8.7 1.7 1.4 18.2 16.5 1.0 0.8

TCS Accumulate 1,495 1,585 292,653 71,833 81,893 28.4 28.0 78.5 88.0 19.0 17.0 5.8 4.7 30.2 27.9 3.8 3.3

Tech Mahindra Buy 943 1,180 12,107 7,699 8,315 19.3 18.1 107.0 115.0 8.8 8.2 1.9 1.6 21.7 19.1 1.5 1.3

Wipro Accumulate 342 385 84,251 40,173 43,697 20.4 20.6 26.2 28.5 13.1 12.0 2.6 2.2 19.7 18.4 1.6 1.3

Media

D B Corp Buy 248 285 4,552 1,750 1,925 25.1 26.6 14.2 16.8 17.5 14.8 3.8 3.2 23.4 23.4 2.5 2.2

HT Media Buy 97 117 2,284 2,205 2,380 15.1 15.6 8.3 9.1 11.8 10.7 1.3 1.2 11.5 11.4 0.7 0.6

Jagran Prakashan Buy 92 121 3,040 1,698 1,908 23.9 24.5 7.4 8.4 12.4 10.9 3.1 2.7 26.7 26.8 1.9 1.7

PVR Neutral 336 - 1,332 1,343 1,521 18.8 18.9 18.3 22.9 18.3 14.7 1.7 1.9 10.6 12.3 1.0 0.9

Sun TV Network Neutral 418 - 16,467 2,287 2,551 69.7 70.5 20.0 23.3 20.9 17.9 5.2 4.5 26.4 27.3 6.9 6.1

Metals & Mining

Bhushan Steel Neutral 463 - 10,489 13,794 17,335 30.7 34.8 48.9 83.6 9.5 5.5 1.0 0.9 11.2 16.7 2.4 1.9

Coal India Accumulate 310 345 195,586 72,174 76,311 33.3 28.4 28.4 30.9 10.9 10.0 3.0 2.6 37.6 36.2 1.8 1.6

Electrosteel Castings Buy 17 24 569 1,976 2,017 11.8 12.7 1.3 2.6 13.8 6.7 0.1 0.1 2.6 5.2 0.6 0.2GMDC Buy 143 213 4,532 1,944 2,317 49.9 51.7 20.8 25.6 6.9 5.6 1.5 1.2 24.3 24.6 1.9 1.4

Hind. Zinc Buy 117 145 49,500 12,358 13,659 51.4 51.6 16.0 17.6 7.3 6.7 1.3 1.1 19.4 18.4 1.8 1.3

Hindalco Neutral 110 - 21,127 88,987 94,163 9.2 9.7 13.8 15.9 8.0 7.0 0.6 0.5 7.6 8.1 0.6 0.5

JSW Steel Neutral 685 - 15,278 39,524 42,064 17.1 16.9 71.8 86.3 9.5 7.9 0.8 0.7 8.6 9.6 0.7 0.6

MOIL Accumulate 214 243 3,592 954 1,062 45.5 47.4 26.1 29.1 8.2 7.4 1.2 1.1 15.1 15.2 1.4 1.1

Monnet Ispat Buy 181 291 1,156 2,883 3,181 21.7 23.6 40.3 57.7 4.5 3.2 0.4 0.4 10.1 13.0 1.3 1.0

Nalco Neutral 34 - 8,866 8,187 8,416 14.5 14.7 3.2 3.3 10.8 10.6 0.7 0.7 6.8 6.7 0.6 0.6

NMDC Buy 121 179 48,052 10,329 12,540 73.8 75.0 16.6 19.0 7.3 6.4 1.4 1.2 20.6 20.2 2.5 1.9


Market Outlook

Stock Watch

May 23, 2013

7/30/2019 Market Outlook, 23-05-13

17/20



Metals & Mining

SAIL Neutral 59 - 24,367 53,685 64,183 9.3 12.2 5.5 8.3 10.8 7.2 0.6 0.5 5.4 7.7 0.8 0.8

Sesa Goa Neutral 161 - 13,997 3,742 4,426 32.9 32.8 30.0 29.8 5.4 5.4 0.7 0.6 14.3 12.5 4.6 3.8

Sterlite Inds Neutral 95 - 31,758 44,462 45,568 23.2 24.7 18.1 20.2 5.2 4.7 0.6 0.5 11.3 11.4 0.7 0.6

Tata Steel Buy 306 430 29,690 141,775 151,672 10.5 11.4 35.3 51.7 8.7 5.9 0.6 0.6 7.6 10.3 0.6 0.5

Sarda Buy 106 153 380 1,494 1,568 19.1 20.3 31.3 36.5 3.4 2.9 0.4 0.3 11.8 12.4 0.6 0.5

Prakash Industries Buy 37 48 502 2,668 2,834 10.0 10.1 4.6 5.2 8.1 7.3 0.2 0.2 3.2 3.4 0.5 0.5

Godawari Power andIspat Buy 84 118 274 2,425 2,552 13.7 14.8 33.5 45.3 2.5 1.8 0.3 0.2 11.2 13.1 0.5 0.4

Oil & Gas

Cairn India Accumulate 290 345 55,312 16,482 16,228 69.4 53.3 53.3 49.6 5.4 5.8 0.8 0.8 16.5 13.6 2.1 1.8

GAIL Neutral 331 - 41,999 55,815 63,013 15.3 15.2 35.9 41.5 9.2 8.0 1.5 1.3 17.0 17.1 0.6 0.5

ONGC Accumulate 329 354 281,390 157,962 175,367 35.1 36.2 34.3 39.3 9.6 8.4 1.7 1.5 18.2 18.6 1.6 1.4

Reliance Industries Neutral 818 - 264,078 380,031 407,721 9.9 69.3 69.3 78.0 11.8 10.5 1.2 1.1 11.5 11.7 0.7 0.6

Gujarat Gas* Neutral 247 - 3,165 3,707 3,850 11.7 12.4 23.7 25.7 10.4 9.6 2.9 2.5 29.6 28.2 0.7 0.7

Indraprastha Gas Neutral 284 - 3,970 3,700 4,218 23.4 22.8 26.6 30.4 10.7 9.3 2.2 1.9 22.6 21.7 1.2 0.9

Petronet LNG Buy 141 167 10,609 40,356 40,872 5.8 6.4 15.0 16.7 9.4 8.5 2.0 1.7 23.0 21.5 0.3 0.3

Gujarat State PetronetLtd.

Neutral 61 - 3,433 1,079 983 91.8 91.9 8.8 7.8 7.0 7.8 1.2 1.0 17.8 14.1 3.0 3.2

Pharmaceuticals

Alembic Pharma Accumulate 124 139 2,343 1,736 2,008 17.1 18.9 10.7 13.9 11.6 8.9 3.7 2.7 35.0 34.7 1.5 1.2

Aurobindo Pharma Buy 182 264 5,307 6,279 7,033 16.0 16.0 15.2 19.2 12.0 9.5 1.6 1.3 19.2 18.0 1.4 1.2

Aventis* Neutral 2,492 - 5,738 1,682 1,917 16.6 16.6 92.4 99.1 27.0 25.1 3.8 3.8 15.7 14.8 3.1 2.5

Cadila Healthcare Buy 787 962 16,104 7,386 8,863 18.0 18.0 39.5 48.1 19.9 16.4 4.5 3.7 24.8 24.7 2.5 2.1

Cipla Accumulate 415 463 33,341 9,130 10,543 24.8 23.0 21.6 23.2 19.2 17.9 3.1 2.7 17.6 16.2 3.4 2.8

Dr Reddy's Buy 2,057 2,535 34,913 13,377 15,350 20.4 20.1 112.3 126.8 18.3 16.2 3.9 3.2 23.5 21.8 2.7 2.3

Dishman Pharma Buy 70 206 566 1,536 1,739 20.2 20.9 15.4 20.6 4.6 3.4 0.5 0.4 11.6 13.7 1.0 0.8

GSK Pharma* Neutral 2,277 - 19,291 2,854 3,145 28.6 28.6 76.6 83.3 29.7 27.3 8.9 8.1 31.1 31.0 5.9 5.3

Indoco Remedies Buy 62 90 568 784 902 15.2 15.2 7.8 9.0 7.9 6.9 1.2 1.0 15.6 15.8 1.0 0.8

Ipca labs Accumulate 583 676 7,354 3,474 4,168 21.0 21.0 37.3 45.1 15.6 12.9 3.7 2.9 26.4 25.3 2.3 1.9

Lupin Accumulate 769 877 34,401 11,641 13,933 21.3 21.3 34.8 41.8 22.1 18.4 5.2 4.1 26.2 24.8 3.0 2.4

Ranbaxy* Neutral 431 - 18,240 11,400 12,060 10.5 10.5 17.5 22.5 24.6 19.2 4.0 3.4 17.0 19.1 1.6 1.5

Sun Pharma Neutral 1,002 - 103,595 12,563 14,698 42.6 42.6 29.8 35.5 33.6 28.2 6.0 5.0 19.2 19.3 7.3 6.1

Power

GIPCL Accumulate 72 78 1,088 1,535 1,570 31.9 31.6 13.1 14.1 5.5 5.1 0.7 0.6 12.4 12.2 1.0 0.8


Market Outlook

Stock Watch

May 23, 2013

7/30/2019 Market Outlook, 23-05-13

18/20



Power

NTPC Neutral 155 - 127,516 76,734 86,680 24.5 24.3 13.4 14.5 11.5 10.7 1.4 1.3 12.8 12.7 2.4 2.3

Real Estate

DLF Buy 227 288 40,418 9,699 12,010 37.0 36.9 6.0 8.4 38.1 27.0 1.4 1.4 3.8 5.1 5.8 4.7

MLIFE Accumulate 398 446 1,627 888 1,002 26.7 25.9 36.3 40.6 11.0 9.8 1.2 1.1 10.8 11.0 2.1 1.9

Telecom

Bharti Airtel Accumulate 312 338 118,407 86,592 95,860 31.4 31.8 10.9 14.5 28.6 21.4 2.2 2.0 7.7 9.3 2.0 1.7

Idea Cellular Neutral 131 - 43,358 25,122 27,663 27.0 27.2 4.0 4.8 33.0 27.5 2.8 2.5 8.3 9.1 2.1 1.9Rcom Neutral 110 - 22,673 22,801 24,628 31.0 31.3 3.6 5.3 30.8 20.9 0.7 0.7 2.2 3.1 2.6 2.3

Others

Abbott India* Buy 1,451 1,659 3,083 1,863 2,081 11.8 12.4 71.2 83.0 20.4 17.5 4.1 3.5 21.6 21.5 1.4 1.1

Bajaj Electricals Buy 172 237 1,717 3,929 4,480 7.4 7.7 15.5 19.7 11.1 8.7 1.9 1.6 17.4 18.7 0.5 0.4

Cera Sanitaryware Buy 451 562 571 630 795 14.4 13.6 42.8 51.1 10.6 8.8 2.5 2.0 26.6 25.2 0.9 0.7

Cravatex Buy 340 566 88 308 351 7.0 7.0 39.6 47.2 8.6 7.2 1.9 1.5 21.8 21.0 0.4 0.4

Finolex Cables Buy 54 68 824 2,563 2,899 9.8 9.8 10.1 11.3 5.4 4.8 0.8 0.7 14.3 13.8 0.3 0.2

Force Motors Buy 398 570 518 2,299 2,621 4.7 4.9 46.3 57.0 8.6 7.0 0.4 0.4 5.0 5.8 0.1 0.1

Goodyear India* Buy 276 352 636 1,453 1,560 9.4 9.8 38.4 41.4 7.2 6.7 1.5 1.3 22.9 20.8 0.3 0.2

Hitachi Buy 153 177 415 1,053 1,169 6.3 7.1 13.8 17.7 11.1 8.6 1.6 1.3 15.0 16.7 0.4 0.4

Honeywell Automation* Neutral 2,500 - 2,210 1,842 2,131 7.7 7.8 112.4 132.4 22.2 18.9 2.8 2.5 13.3 13.8 1.1 0.9

IFB Agro Buy 165 198 148 495 651 12.7 12.9 29.3 39.5 5.6 4.2 0.8 0.7 15.4 17.6 0.4 0.3

ITD Cementation Buy 180 234 207 1,430 1,573 11.1 11.0 19.1 26.9 9.5 6.7 0.5 0.5 4.9 6.3 0.6 0.5

Jyothy Laboratories Neutral 175 - 2,814 979 1,164 14.9 15.1 6.0 7.7 29.0 22.6 3.6 3.3 12.9 15.1 2.9 2.4

MRF Neutral 15,335 - 6,504 11,799 12,587 14.1 13.5 1,792.4 1,802.0 8.6 8.5 1.8 1.5 23.5 19.2 0.6 0.6

Page Industries Reduce 3,783 3,637 4,219 1,047 1,281 19.6 19.8 127.3 158.1 29.7 23.9 14.2 10.3 54.9 50.0 4.2 3.4Relaxo Footwears Buy 620 791 744 1,146 1,333 10.9 11.4 45.9 60.9 13.5 10.2 2.8 2.3 23.0 24.6 0.8 0.7

Siyaram Silk Mills Buy 264 312 247 1,157 1,320 11.9 12.0 66.6 77.9 4.0 3.4 0.7 0.6 18.3 18.2 0.5 0.4

Styrolution ABS India* Buy 434 617 763 1,068 1,223 9.6 9.6 38.1 44.1 11.4 9.8 1.6 1.4 14.5 14.7 0.8 0.7

TAJ GVK Buy 62 108 387 300 319 35.8 36.2 7.9 9.1 7.8 6.8 1.0 0.9 13.9 14.4 1.6 1.4

Tata Sponge Iron Buy 297 371 458 814 849 17.0 17.6 64.6 69.2 4.6 4.3 0.6 0.6 14.5 13.8 0.2 -

TTK Healthcare Accumulate 521 553 404 435 516 6.2 7.1 24.3 33.3 21.4 15.6 3.5 3.0 17.6 20.8 0.7 0.6

Tree House Accumulate 259 275 933 150 192 52.7 52.5 12.8 16.2 20.2 16.0 2.0 1.8 10.0 11.1 5.8 4.4

TVS Srichakra Buy 186 226 142 1,591 1,739 7.1 7.4 39.4 56.5 4.7 3.3 0.9 0.8 20.6 25.0 0.3 0.3

United Spirits Neutral 2,484 - 32,490 11,886 13,491 14.4 14.0 50.9 74.5 48.8 33.4 4.0 3.6 10.6 11.4 2.9 2.6


Market Outlook

Stock Watch

May 23, 2013

7/30/2019 Market Outlook, 23-05-13

19/20



Others

Vesuvius India* Buy 370 439 751 600 638 20.1 19.4 35.7 36.6 10.4 10.1 1.9 1.6 19.4 17.1 1.0 0.9

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on May 22, 2013


Market Outlook

Stock Watch

May 23, 2013

7/30/2019 Market Outlook, 23-05-13

20/20


Documents

Market Outlook, 23-05-13