Market Outlook 240712

7/31/2019 Market Outlook 240712

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Market OutlookJuly 24, 2012

www.angelbroking.com


Dealers Diary

The Indian markets are expected to open flat taking cues from flat to negative

opening in the Asia markets, following sizeable losses on Wall Street as fresh

worries about Europe took a fresh hit at investor confidence.

US markets fell sharply yesterday but pared steep losses from earlier in the session,as worries about Europes fiscal health flared back up, pushing U.S. treasury yields

to new lows and boosting the dollar. The weakness was seen in global markets as

worries about the ongoing European debt crisis resurfaced amid indications that

Spain could require a full bailout. Contributing to the worries about Spain, the

country's central bank said that Spanish GDP fell by 0.4% in the second quarter

following a 0.3% contraction in the first quarter.

Meanwhile, Indian shares tumbled yesterday, tracking extremely weak Asian and

European cues, as concerns that the European debt crisis prevailed along with

domestic concerns over whether or not the government will initiate fresh reform

initiatives, ahead of a Cabinet reshuffle expected over the next fortnight.

Markets TodayThe trend deciding level for the day is 16,925 / 5,130 levels. If NIFTY trades above

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

up to 17,000 17,123 / 5,152 5,186 levels. However, if NIFTY trades below

16,925 / 5,130 levels for the first half-an-hour of trade then it may correct up to

16,802 16,726 / 5,096 5,074 levels.

SENSEX 16,726 16,802 16,925 17,000 17,123

NIFTY 5,074 5,096 5,130 5,152 5,186

News Analysis Petrol price raised by`0.70/liter 1QFY2013 Result Reviews HUL, L&T, Cairn India, Idea Cellular, Dabur,

Colgate, Indian Bank, Tata Global, Rallis India, Greenply Industries

1QFY2013 Result Previews - Wipro, Lupin, Canara Bank, Sesa Goa, LICHousing, Ashok Leyland, KPIT, Mahindra Lifespace

Refer detailed news analysis on the following page

Net Inflows (July 23, 2012)

FII 2,031 1,816 215 9,028 49,990

MFs 495 475 20 (1,916) (8,076)

FII Derivatives (July 23, 2012)

Index Futures 2,539 3,027 (488) 16,179

Stock Futures 4,365 4,678 (312) 27,391

Gainers / Losers

Shriram Trans 558 3.8 Crompton Greav 118 (9.2)

Indian Bank 190 3.3 Pantaloon Retail 175 (7.9)

Mahindra & Mah Fin 688 2.0 HDIL 76 (6.9)

Ultratech Cement 1,596 1.9 IVRCL Ltd. 44 (6.1)

Zee Entertainment 153 1.8 Godrej Industries 232 (5.7)

BSE Sensex (1.6) (281.1) 16,877

Nifty (1.7) (87.2) 5,118

MID CAP (1.3) (80.9) 6,103

SMALL CAP (1.1) (76.2) 6,599

BSE HC (0.3) (21.8) 6,967

BSE PSU (1.6) (115.5) 7,131

BANKEX (2.0) (236.9) 11,805

AUTO (2.4) (220.1) 8,942

METAL (3.4) (357.3) 10,316

OIL & GAS (0.9) (73.7) 7,953

BSE IT (1.2) (62.8) 5,258

Dow Jones (0.8) (101.1) 12,721NASDAQ (1.2) (35.2) 2,890

FTSE (2.1) (117.9) 5,534

Nikkei (1.9) (161.6) 8,508

Hang Seng (3.0) (587.3) 19,053

Straits Times (1.1) (33.0) 2,982

Shanghai Com (1.3) (27.2) 2,141

INFY (1.9) (0.7) $38.8

WIT (3.2) (0.3) $7.9IBN (4.1) (1.4) $32.5

HDB (3.4) (1.1) $32.4

Advances 990 360

Declines 1,794 1,132

Unchanged 108 58

BSE 1,636

NSE 7,783


2/20



Petrol price raised by`0.70/liter

Press Trust of India reported that petrol price have been hiked by`0.70/liter due to

recent surge in price of international crude oil. Earlier, petrol prices were lowered

by`2.02/litre on June 3, 2012 and`2.46/litre on June 29, 2012 on the back of

decline in international crude oil price. Since change in petrol price have nobearing on under-recoveries, we do not change our financial estimates on any of

our coverage companies.

Result Reviews

HUL (CMP:`443 / TP: - / Upside: - %)

HUL announced its 1QFY2013 results. Top-line grew by13.7% yoy to `6,250cr.

Domestic consumer business grew by 19% aided by 9% volume growth. HPC

segment recorded 20.6% growth while food business grew by 10.6%. OPMexpanded by 107bp yoy to 13.4%. Adjusted Profit grew by 48% yoy to 854.6cr.

During the quarter, the company had exceptional profit of `607cr from profit on

sale of properties.

FY2013E 25,350 14.3 3,106 14.4 80.5 30.8 22.8 25.5 3.7

FY2014E 29,309 14.4 3,597 16.6 74.9 26.6 17.7 21.7 3.1

L&T (CMP:`

1,376/ TP:`

1,553 / Upside: 13%)Larsen and Toubro (L&T) posted mixed set of numbers for 1QFY2013, with robust

growth on the revenue front and order inflow front but steep fall in EBITDA margin

(owing to forex MTM provisioning). On the top line front, L&T reported strong top-

line growth of 26.1% yoy to `11,955cr, higher than our and street estimate of

`11,036cr and`11,002cr respectively.Robust performance on the revenue front

was driven by on-time execution. Segment wise Engineering and Construction

segment (E&C) grew by 29.5% on yoy basis. On the EBITDA front, company

reported a yoy dip of 280bp to 9.1% against our expectations of 11.7% due to

MTM forex loss of ~`270cr. Adjusting for same the EBITDAM would have stood at

~11.8%. On the bottom line front, L&T reported a yoy growth of 15.7% to`

864crhigher than our estimate of `819cr owing to huge surge in other income. Other

income for the quarter grew 152.2% yoy to `606cr led by higher dividend from

subsidiaries.

As of 1QFY2013, L&Ts order backlog stands at `1,53,095cr yoy growth of

12.4%. Order inflow for the quarter came in at `19,594cr (yoy increase of 21.0%)

against our expectation of`18,500cr.

For FY2013, the management has reiterated its guidance of 15-20% growth for

both revenue and order inflow. We believe that although the company can achieve

this guidance on revenue front given its robust order backlog however it would be

difficult to achieve 15-20% growth on order inflow front given the challenging

macro environment.


3/20



FY2013E 60,474 12.1 4,441 72.5 16.4 19.0 2.9 12.8 1.5

FY2014E 68,796 11.5 4,678 76.3 15.1 18.0 2.6 11.9 1.4

Cairn India (CMP:`320/ TP:`372/ Upside: 16%)

Cairn India announced better-than-expected 1QFY2013 results. The companys

top line increased 19.6% yoy to`4,440cr (above our expectation of`3,761cr) led

by higher crude oil sales volumes. The companys gross production averaged206,963boepd (+20.5% yoy and 14.8% qoq) during the quarter. However, gross

crude oil realization decreased by 4.6% yoy to US$101.0/bbl. Operating margin

contracted by 686bp yoy to 78.7%, although operating profit grew by 10.0% yoy

to `3,492cr during the quarter. The company recorded an exceptional gain of

`866cr on account of forex fluctuation during 1QFY2013. Excluding this

exceptional gain, adjusted net profit grew by 8.5% yoy to `2,960cr (above our

estimate of `2,479cr). Reported net profit grew by 40.3% yoy to `3,826cr.

FY2013E 15,513 74.0 9,754 51.09 18.3 6.3 1.0 3.9 2.9

FY2014E 16,074 69.7 9,268 48.55 14.8 6.6 0.9 3.0 2.1

Idea Cellular (CMP:`80 / TP: - / Upside: -)

Idea Cellular (Idea) reported its 1QFY2013, which were in-line with our estimates

on the revenue as well as profitability front. The revenues came in at`5,504cr, up

2.5% qoq, on the back of 5.3% qoq growth in the overall network traffic. MOU

stood flat qoq at 379min while ARPM declined by 2.4% to by`0.41/month. APRU

declined by 2.5% qoq to`156/month. EOP subscriber base grew by 4.0% qoq to

117.2mn.

EBITDA margin increased by 81bp qoq to 26.1%. PAT came in at `234cr, up 2%

qoq, impacted by 24.5cr forex loss. The company remain surrounded by

regulatory uncertainties related to spectrum and license fee payments.

FY2013E 23,209 26.2 1,086 3.3 7.7 24.4 1.9 6.2 1.6

FY2014E 26,063 27.5 1,629 4.9 10.3 16.3 1.7 5.0 1.4


4/20



Dabur (CMP:`118 / TP: - / Upside: - %)

Dabur India posted a 21.3% yoy growth in top-line to `1,462 cr driven by 12%

domestic volume growth. The companys consumer care segment grew by~10%

aided by good volume and value growth. Perfume hair oil category showed a

robust growth of 14%. In international markets, Nigeria, Egypt and Nepal showedgood performance. The companys OPM expanded marginally by 44bp yoy to

14.6%. The company incurred a forex loss of`4.5cr due to depreciation in rupee.

Net profit rose by 17% yoy to`150cr.

FY2013E 5,878 16.8 722 4.2 40.7 28.4 11.2 21.7 3.6

FY2014E 6,799 17.0 856 4.9 41.4 24.0 9.0 18.5 3.1

Colgate (CMP:`1,168 / TP: - / Upside: - %)

Colgate announced its 1QFY2013 results. Top-line increased by 20.5% yoy to

736cr due to healthy 11.0% yoy volume growth. The company has been able to

improve its market share in tooth-paste category to 54.5% from 52.4% and in

toothbrush category to 38.2% from 36.3%. OPM remained flat yoy at 19.95%.

Consequently, Net Profit grew by 16.9% yoy to 117cr.

FY2013E 3,018 21.2 469 34.5 113.9 33.9 41.0 26.6 5.2

FY2014E 3,429 22.3 542 39.8 129.0 29.3 35.1 22.5 4.6

Indian Bank- (CMP:`188/ TP: - / Upside: -)

During 1QFY2013, Indian Bank reported earnings growth of 13.5% yoy to`462cr,

as moderate 7.5% growth in pre provisioning profits, was aided by improvement

witnessed on the asset quality front, with decline in provisioning expenses by

17.7% on a yoy basis.

Advances for the bank grew at a moderate pace of 13.8% yoy, mainly aided by

strong growth in the agri segments and the overseas book. On the liability side,

growth in deposits was relatively higher at 15.0% yoy. The banks yield on

advances improved by 39bp qoq to 11.3% (mainly due to impact of interest

reversal of `151cr on the yields in last quarter), while cost of deposits was also

higher by 23bp qoq to 7.0%, leading to a 14bp sequential improvement in

reported NIM to 3.3%. Fee income however registered a decline of 10.7% yoy to

`223cr. The banks asset quality improved sequentially during 1QFY2013, with

both gross and net NPAs levels declining on a sequential basis by 16% and 19.5%,

respectively. Gross NPA ratio was lower on a sequential basis by 37bp to 1.7%,

while net NAP ratio decline by 29bp qoq to 1.0%. The banks PCR improved

sequentially by 495bp and stood at comfortable 75.1%. At CMP, the stock trades

at 0.7x FY2014E ABV.


5/20



FY2013E 6,417 3.5 1,883 42.7 241.5 1.2 18.9 4.4 0.8

FY2014E 7,292 3.5 2,033 46.2 275.2 1.1 17.8 4.1 0.7

Tata Global (CMP:`116 / TP:`136 / Upside: 17.2 %)

During 1QFY2013, Tata global posted a 17.8% yoy growth in its top-line to

`1,715cr aided by improved performance in most of its major markets such as US,

Europe etc and favorable foreign exchange fluctuation. The operating margins

rose by 255bp yoy to 10% aided by reduction in raw material costs. The

companys PAT remained flat at `81cr, which was in-line with our estimates.

FY2013E 7,011 9.7 388 6.3 9.5 16.6 1.4 8.0 0.7

FY2014E 7,711 10 461 7.5 10.9 12.2 1.3 6.2 0.6

Rallis India (CMP 122/ TP: - / Upside: -)

For 1QFY2013, Rallis reported net sales and net profit for the quarter came in at

`338.3cr and`24.2cr, a rise of 16% and 4.5% respectively. Consolidated EBITDA

margin shrunk to 10.2% V/s 12.9% in 1QFY2012. This along with the higher

interest expenditure which rose by almost `5.2cr, rising by 57.6%yoy. Overall the

Net Profit stood at`24.2cr, arise of 4.5%yoy.

FY2013E 1,432 14.7 137 7.0 22.8 17.3 3.7 12.6 1.9

FY2014E 1,647 14.7 157 8.0 22.3 15.2 3.1 10.8 1.6

Greenply Industries (CMP:`185 / TP:`309 / Upside: 67%)

Greenply Industries (GIL) announced a strong set of numbers for 1QFY2013. The

companys net sales grew by 22.2% yoy`431cr on the back of strong growth

across all segments. The plywood, laminate and MDF segments reported yoy

growth of 13.6%, 20.3% and 60.6%, respectively. EBITDA increased by 31.4% yoy

to `50cr on the back of higher revenue and margin expansion. EBITDA margin

expanded by 81bp yoy to 11.6%. The company registered forex loss of `7cr in

1QFY2013 vs. loss of`5cr in 1QFY2012. PAT increased by 38.7% yoy to`18cr,

higher than EBITDA growth due to other income of `1cr during the quarter.

FY2013E 1,925 10.6 71 29.6 17.6 6.3 1.0 4.9 0.5

FY2014E 2,235 10.9 107 44.1 21.8 4.2 0.8 3.9 0.4


6/20



Result Previews

Wipro (CMP:`356 / TP:`451 / Upside: 27%)

Wipro is slated to announce its 1QFY2013 results today. We expect the companys

IT services segment to post revenues of US$1,540mn, up 0.3% qoq. Volume

growth is expected to be 1.0% qoq. At the consolidated level, we expect the

company to record revenues of`10,842cr, up 9.9% qoq. At a consolidated level,

Wipro is expected to record 10bp qoq decline in its EBIT margin to 20.0%. PAT is

expected to come in at`1,531cr.

FY2013E 44,597 20.3 6,521 26.6 19.5 13.4 2.6 8.0 1.6

FY2014E 49,033 20.5 7,379 30.1 18.9 11.9 2.2 6.6 1.3

Lupin (CMP:`571/ TP:`647/ Upside: 13.3%)

Lupin, is expected to register 19.4% yoy top-line growth. The topline growth will be

driven by both the domestic and exports.OPM for the quarter is expected to

expand by 220bp yoy. Consequently, net profit is expected to increase by 22.2%

yoy in 1QFY2013.

FY2013E 8,426 19.7 1,226 27.4 27.0 20.8 4.8 14.5 2.8

FY2014E 10,082 20.0 1,466 32.4 25.2 17.6 3.8 11.4 2.3

Canara Bank (CMP:`389/ TP:`492 / Upside: 26.4%)

Canara Bank is scheduled to announce its 1QFY2013 results today. We expect the

bank to report a healthy 15.7% yoy growth in Net Interest Income (NII) to

`2,075cr. Non-interest income is expected to grow relatively higher at 39.8% yoy

to `736cr. Operating expenses are expected to increase by 20.3% yoy to

`1,263cr. Provisioning expenses are also expected to be higher by 33.3% yoy to

`459cr. Consequently, Net profit growth is expected to be 12.5% to`817cr. At the

CMP, the stock is trading at 0.7x FY2014E ABV.

FY2013E 12,296 2.4 3,608 81.4 508.4 0.9 16.4 4.8 0.8

FY2014E 14,445 2.5 4,086 92.2 578.3 0.9 16.3 4.2 0.7

Sesa Goa (CMP:`184/ TP: -/ Upside: -)

Sesa Goa is slated to announce its 1QFY2013 result today. We expect the

companys top-line to increase by 10.0% yoy to `2,319cr. However, its EBITDAmargin is expected to contract 2,310bp yoy to 31.2% due to decline in iron ore

prices, rising costs and higher export duty. Nevertheless, bottom-line is expected to

grow by 24.4% yoy to `1,047cr despite decline in operating profits due to


7/20



contribution of share of profits from its associate, Cairn India.

FY2013E 9,067 35.7 3,957 44.5 23.5 4.1 0.9 5.6 2.0FY2014E 9,316 35.5 3,944 44.3 19.5 4.2 0.7 5.2 1.9

LIC Housing (CMP:`248/ TP:`287 / Upside: 15.4%)

LIC Housing is expected to announce moderate set of results for 1QFY2013. The

NII is expected to increase by 5.8% yoy to `441cr, while non-interest income is

expected to come in at`13cr. Provisioning is expected to be lower by 31.4% yoy at

`23cr. Consequently the PAT is expected to increase by 8.4% yoy to `278cr.

FY2013E 2,071 2.7 1,235 24.5 131.0 1.7 20.1 10.2 1.9

FY2014E 2,618 2.7 1,546 30.6 154.9 1.7 21.4 8.1 1.6

Ashok Leyland (CMP:`24 / TP:`33 / Upside: 37%)

Ashok Leyland (AL) is slated to announce its 1QFY2013 results today. The

companys top line is expected to grow by a strong 29% yoy to `3,208cr led by

~43% yoy growth in volumes mainly led by LCV Dost. We expect net average

realization to decline by ~10% yoy on account of higher contribution from lowerpriced vehicle, Dost. On the operating front, EBITDA margin is expected to witness

a ~98bp yoy contraction to 8.4% mainly due to change in product-mix. However,

led by strong top-line growth, net profit is expected to surge 23% yoy to `106cr. At

`24, the stock is attractively valued at 8x FY2014E earnings.

FY2013E 14,798 9.6 645 2.4 14.7 9.8 2.0 5.3 0.5

FY2014E 16,687 9.6 791 3.0 16.5 8.0 1.7 4.4 0.4

KPIT (CMP:`122 / TP: - / Upside: -)

KPIT Cummins Infosystems (KPIT) is slated to announce its 1QFY2013 results

today. We expect the company to post revenue of US$97mn, up 2.1%. In INR

terms, the revenue is expected to come in at`525cr, up 9.4% qoq. EBITDA margin

is expected to decline by 136bp qoq to 14.5%, due to negative impact from wage

hikes. PAT is expected to come in at `35cr.

FY2013E 2,145 16.0 189 9.9 20.8 12.3 2.4 6.2 1.0

FY2014E 2,316 14.8 213 11.3 19.1 10.8 2.0 5.8 0.9


8/20



Mahindra Lifespace (CMP:`317 / TP: -`376/ Upside: - 18.6%)

Mahindra Lifespaces (MLIFE) is expected to announce its 1QFY2013 results today.

We expect the company to post revenue of `90cr, up 10.4%. EBITDA margin is

expected to remain flat yoy with EBITDA coming in at `19cr. PAT is expected to

come in at`22cr up 24% yoy.

FY2013E 814 26.9 128 31.3 10.2 10.1 1.0 8.1 2.2

FY2014E 897 27.0 139 33.9 10.1 9.3 0.9 7.1 1.9

Quarterly Bloomberg Brokers Consensus Estimate

Net sales 3,079 2,496 23 4,236 (27)

EBITDA 267 245 9 470 (43)

EBITDA margin (%) 8.7 9.8 11.1

Net profit 92 86 7 269 (66)

Net profit 820 726 13 829 (1)

Net sales 5,219 3,940 32 5,465 -5

EBITDA 1,931 1,626 19 1,914 1

EBITDA margin (%) 37.0 41.3 35.0

Net profit 1,091 937 16 1,171 -7

Net profit 269 257 5 254 6

Net sales 2,021 1,543 31 1,883 7

EBITDA 417 294 42 373 12

EBITDA margin (%) 20.6 19.1 19.8

Net profit 264 214 23 161 64

Net profit 324 347 (7) 308 5


9/20



Net sales 1,865 2,095 (11) 2,791 (33)

EBITDA 667 1,147 (42) 997 (33)

EBITDA margin (%) 35.8 54.7 35.7

Net profit 937 841 11 1,162 (19)

Net sales 10,556 8,564 23 9,816 8

EBITDA 2,084 1,729 21 2,205 (5)

EBITDA margin (%) 19.7 20.2 22.5

Net profit 1,604 1,340 20 1,491 8

Net sales 5,760 4,300 34.0 5,216 10.4

EBITDA 1,110 794 39.7 959 15.7

EBITDA margin (%) 19.3 18.5 18.4

Net profit 679 511 32.9 603 12.7

Net profit 939 705 33 1,032 (9)

Net profit 324 347 (7) 308 5

Net sales 2,727 2,403 13 2,860 (5)

EBITDA 610 580 5 645 (5)

EBITDA margin (%) 22.4 24.1 22.6

Net profit 376 337 12 155 143

Net sales 2,480 2,173 14 2,633 (6)

EBITDA 700 598 17 772 (9)

EBITDA margin (%) 28.2 27.5 29.3

Net profit 451 348 30 312 45


10/20



Net sales 7,753 7,126 9 19,260 (60)

EBITDA 1,144 1,113 3 5,336 (79)

EBITDA margin (%) 14.8 15.6 27.7

Net profit 818 816 0 3,380 (76)

Net sales 6,692 5,767 16 6,861 (2)

EBITDA 2,286 1,976 16 2,021 13

EBITDA margin (%) 34.2 34.3 29.5

Net profit 1,592 1,333 19 1,614 (1)

Net sales 9,170 7,432 23 10,153 (10)

EBITDA 1,608 1,435 12 1,887 (15)

EBITDA margin (%) 17.5 19.3 18.6

Net profit 479 495 (3) 808 (41)

Net sales 10,398 9,824 6 10,975 (5)

EBITDA 2,505 2,758 (9) 3,308 (24)

EBITDA margin (%) 24.1 28.1 30.1

Net profit 1,152 2,282 (50) 2,403 (52)

Economic and Political News

Coal regulator panel likely to meet on 25 th July EGoM for base spectrum price between`14,000cr -`15,000cr Government says monsoon likely to be lower than forecast Pranab Mukherjee to be sworn in as 13th President today Sharad Pawar named as head of GoM on coal-miningCorporate News

Aurobindo gets USFDA nod to sell anti-diabetic drug Essar Oil borrows`5,000cr to meet sales tax dues Godrej Industries plans to raise up to`405cr via QIP Indian Bank restructures`35cr for Air India IT spending in India to grow at 16.3% to US$43.57bn in 2012: IDCSource: Economic Times, Business Standard, Business Line, Financial Express, Mint


11/20

Date Company

July 24, 2012Wipro, Jindal Steel, Lupin, Canara Bank, Sesa Goa, Shriram Trans., LIC Housing Fin., Ashok Leyland, Page Industries,Ineos ABS

July 25, 2012 Power Grid Corpn, Yes Bank, Aventis, Vijaya Bank, GIPCL, MRF, Jyothy Laboratories

July 26, 2012

ITC, BHEL, Sterlite Inds, Ambuja Cements, ACC, JSW Steel , Gujarat Gas, Tata Comm, Thermax, Jagran Prakashan,

Bajaj Electrical, J K Lakshmi Cements

July 27, 2012NTPC, ICICI Bank, Nestle, Punjab Natl.Bank, Grasim Inds, Bank of India, Rural Elec.Corp., Union Bank, United Spirits,Central Bank, IRB Infra, Areva, CESC, TVS Motor, Dena Bank, Hind. Const., Siyaram Silk Mills

July 28, 2012 HDFC, Maruti, Indraprasth Gas, Sarda Energy, Vesuvius India, Force Motors

July 30, 2012GAIL, Bank of Baroda, Oriental Bank, Allahabad Bank, IOB, Corporation Bank, Syndicate Bank, Sadbhav Engg.,SpiceJet, Jyoti Structures, Indoco Remedies, JK Tyre, Subros

July 31, 2012Cipla, Titan Inds., Jaiprakash Asso., Petronet LNG, IDBI Bank, Bhushan Steel, Ipca labs, Hexaware, KEC International,Dishman Pharma

August 01, 2012 Mundra Port, Adani Power, Federal Bank, PVR, CEAT

August 02, 2012 Cummins India, Glenmark Pharma., Madras Cements

August 03, 2012 Sun TV Network, Marico, United Bank, BGR Energy

August 04, 2012 Godrej Consumer

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

Jul 24 2012 12:00AM Germany PMI Services Value Jul A 49.90 50.00

Germany PMI Manufacturing Value Jul A 45.00 45.10

Jul 25 2012 12:00AM UK GDP (YoY) % Change 2Q A (0.20) (0.30)

US New home sales Thousands Jun 369.00 370.65

Jul 26 2012 12:00AM US Initial Jobless claims Thousands Jul 21 386.00 380.00

Jul 27 2012 12:00AM US GDP Qoq (Annualised) % Change 2Q A 1.90 1.40

Jul 30 2012 12:00AM Euro ZoneEuro-Zone ConsumerConfidence

Value Jul F (21.60) --

Jul 31 2012 12:00AM US Consumer ConfidenceS.A./

1985=100Jul 62.00 62.00

Germany Unemployment change (000's) Thousands Jul 7.00 --

India RBI Repo rate % Jul 31 8.00 8.00

India RBI Cash Reserve ratio % Jul 31 4.75 4.75

India RBI Reverse Repo rate % Jul 31 7.00 7.00

Aug 1 2012 12:00AM India Imports YoY% % Change Jun (7.36) --

India Exports YoY% % Change Jun (4.16) --

UK PMI Manufacturing Value Jul 48.60 --

China PMI Manufacturing Value Jul 50.20 --

US FOMC rate decision % Aug 1 0.25 0.25

Aug 2 2012 12:00AM UK BOE Announces rates % Ratio Aug 2 0.50 0.50

Euro Zone ECB announces interest rates % Aug 2 0.75 --

Aug 3 2012 12:00AM US Change in Nonfarm payrolls Thousands Jul 80.00 97.00

US Unnemployment rate % Jul 8.20 8.20

Aug 7 2012 12:00AM UK Industrial Production (YoY) % Change Jun (1.60) --

Aug 9 2012 12:00AM China Industrial Production (YoY) % Change Jul 9.50 --

China Consumer Price Index (YoY) % Change Jul 2.20 --



July 24, 2012

Market Outlook


12/20

Market StrategyJuly 24, 2012


Macro watch

Exhibit 1 :Q uarterly G D P 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

4Q

FY09

1Q

FY10

2Q

FY10

3Q

FY10

4Q

FY10

1Q

FY11

2Q

FY11

3Q

FY11

4Q

FY11

1Q

FY12

2Q

FY12

3Q

FY12

4Q

FY12

(%)

Source: CSO, Ang el Research

Exhibit 2 :IIP trends

9 .5

3. 7 3. 42. 5

(5.0)

6 .0

2. 7

1. 0

4. 3

(3.2)

(0.9)

2. 4

(6.0)

(4.0)

(2.0)

-

2. 0

4. 0

6. 0

8. 0

10.0

12.0

Jun

-11

Ju

l-11

Aug

-11

Sep

-11

O

ct-11

Nov

-11

Dec

-11

Jan

-12

Fe

b-

12

M

ar

-12

Apr

-12

M

ay

-12

(%)

Source: M O SPI, Ang el Research

Exhibit 3 :M onthly WPI inflation trends

9. 4 9. 810.0 9. 9 9. 5

7. 76. 9

7. 4 7. 7 7. 5 7. 6 7. 3

0. 0

2. 0

4. 0

6. 0

8. 0

10.0

12.0

Ju

l-11

Aug

-11

Sep

-11

O

ct-11

Nov

-11

Dec

-11

Jan

-12

Fe

b-

12

M

ar

-12

Apr

-12

M

ay

-12

Jun

-12

(%)

Source: M O SPI, Ang el Research

Exhibit 4 :M a nufacturing a nd services PM I

48.0

50.0

52.0

54.0

56.0

58.0

60.0

Jun

-11

Ju

l-11

Aug

-11

Sep

-11

O

ct-11

Nov

-11

Dec

-11

Jan

-12

Fe

b-

12

M

ar

-12

Apr-

12

M

ay

-12

Jun

-12

M fg. PM I Services PM I

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

Exhibit 5 :Expo rts an d impo rts growth trends

(15.0)

0. 0

15.0

30.0

45.0

60.0

75.0

Jun

-11

Ju

l-11

Aug

-11

Sep

-11

O

ct-11

Nov

-11

Dec

-11

Jan

-12

Fe

b-1

2

M

ar

-12

Apr

-12

M

ay

-12

Expo rts yo y g ro wth Im ports yo y growth( %)


Exhibit 6 :Key policy rates

4.00

5.00

6.00

7.00

8.00

9.00

Ju

l-11

Aug

-11

Sep

-11

O

ct-11

Nov

-11

Dec

-11

Jan

-12

Fe

b-

12

M

ar

-12

Apr

-12

M

ay

-12

Jun

-12

Ju

l-12

Repo rate Reverse Repo rate C RR(%)

Source: RBI, Angel Research


13/20

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 122 - 2,368 1,432 1,647 14.7 14.7 7.0 8.0 17.4 15.2 3.7 3.1 22.8 22.3 1.8 1.5

United Phosphorus Buy 122 183 5,603 8,191 8,764 16.5 16.5 17.1 18.3 7.1 6.6 1.2 1.0 17.5 16.2 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Accumulate 301 345 2,573 2,715 3,041 15.3 15.3 29.2 32.8 10.3 9.2 2.4 1.9 26.0 23.3 0.9 0.8

Apollo Tyres Buy 82 100 4,115 13,699 15,184 10.5 10.2 12.1 13.3 6.8 6.1 1.2 1.0 19.7 18.4 0.5 0.4

Ashok Leyland Buy 24 33 6,332 14,798 16,687 9.6 9.6 2.4 3.0 9.8 8.0 2.0 1.7 14.8 16.5 0.5 0.4

Automotive Axle Accumulate 403 430 609 993 1,140 11.6 11.5 36.9 43.0 10.9 9.4 2.2 1.9 21.2 21.3 0.7 0.5Bajaj Auto Accumulate 1,561 1,698 45,176 21,285 23,927 18.2 18.3 108.5 121.3 14.4 12.9 6.0 4.8 46.1 41.3 1.7 1.5

Bharat Forge Buy 293 372 6,824 7,173 7,998 16.3 16.5 22.3 26.6 13.1 11.0 2.5 2.1 21.0 21.0 1.0 0.9

Bosch India Neutral 8,707 - 27,339 9,106 10,255 19.4 19.3 410.2 460.3 21.2 18.9 4.7 3.9 22.1 20.4 2.7 2.3

CEAT Buy 98 164 334 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 130 149 11,046 5,899 6,771 16.0 17.0 7.4 9.1 17.7 14.2 3.2 2.7 19.0 20.2 1.6 1.3

FAG Bearings Neutral 1,454 - 2,417 1,505 1,747 17.7 18.0 111.5 130.0 13.1 11.2 2.7 2.2 22.8 21.7 1.4 1.1

Hero Motocorp Buy 2,053 2,428 41,001 26,097 29,963 15.0 15.3 139.5 151.8 14.7 13.5 6.9 5.3 54.6 44.3 1.3 1.1

JK Tyre Buy 92 135 380 7,950 8,904 5.5 6.0 25.1 38.6 3.7 2.4 0.4 0.4 12.1 16.4 0.3 0.3

Mahindra and Mahindra Buy 693 824 42,530 35,881 40,746 10.0 10.0 47.5 53.2 14.6 13.0 2.9 2.5 21.3 20.5 1.0 0.8

Maruti Buy 1,080 1,364 31,199 39,959 46,670 6.0 7.0 71.4 90.9 15.1 11.9 1.8 1.6 12.8 14.4 0.6 0.5

Motherson Sumi Buy 167 216 6,547 23,342 26,366 7.8 8.2 13.3 18.0 12.6 9.3 3.0 2.4 26.2 28.4 0.5 0.4

Subros Accumulate 31 36 188 1,244 1,402 8.4 8.3 4.5 5.1 7.0 6.2 0.7 0.7 9.9 11.0 0.4 0.4

Tata Motors Buy 216 305 57,566 191,303 211,004 13.0 12.9 40.7 43.8 5.3 4.9 1.8 1.5 36.0 33.1 0.4 0.4

TVS Motor Accumulate 39 42 1,853 7,442 8,198 6.2 6.1 4.8 5.2 8.2 7.4 1.4 1.3 18.2 17.9 0.2 0.2

Capital Goods

ABB* Sell 736 498 15,592 8,760 10,023 7.6 7.5 18.2 20.7 40.4 35.5 5.4 4.9 14.4 14.6 1.8 1.6BGR Energy Neutral 291 - 2,096 4,195 4,837 11.0 11.0 30.1 32.4 9.7 9.0 1.7 1.5 18.4 17.6 1.1 1.0

BHEL Neutral 220 - 53,798 47,801 43,757 19.4 19.8 25.7 23.9 8.6 9.2 1.8 1.6 22.7 18.3 1.1 1.0

Blue Star Neutral 186 - 1,676 3,047 3,328 5.4 6.9 9.6 16.2 19.4 11.5 3.8 3.1 20.7 29.7 0.7 0.5

Crompton Greaves Neutral 118 - 7,579 12,691 14,096 7.0 8.5 6.5 9.1 18.2 13.0 1.9 1.8 11.1 14.2 0.7 0.6

Jyoti Structures Buy 40 67 330 2,622 2,801 10.6 11.0 10.9 13.4 3.7 3.0 0.5 0.4 13.7 14.9 0.3 0.3

KEC International Buy 57 73 1,464 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 1,611 1,992 1,815 2,369 2,727 11.7 11.7 143.4 166.0 11.2 9.7 1.9 1.7 17.4 18.4 0.3 0.2

Thermax Neutral 513 - 6,115 5,514 5,559 9.8 9.6 29.7 28.4 17.3 18.1 3.3 2.9 20.2 16.9 1.0 0.9


July 24, 2012

Market Outlook

Stock Watch


14/20



Cement

ACC Neutral 1,253 - 23,527 11,096 12,607 21.0 21.7 76.1 82.9 16.5 15.1 3.1 2.8 19.3 19.3 1.9 1.6

Ambuja Cements Neutral 167 - 25,688 10,205 11,659 24.6 24.2 10.8 12.0 15.4 13.9 3.2 2.9 19.7 19.8 2.2 1.8

India Cements Neutral 79 - 2,418 4,364 4,791 18.9 19.1 9.2 11.4 8.5 6.9 0.7 0.6 8.0 9.5 0.5 0.4

J K Lakshmi Cements Neutral 80 - 981 1,938 2,246 19.1 20.1 15.2 16.8 5.3 4.8 0.7 0.6 13.8 14.0 0.6 1.0

Madras Cements Neutral 157 - 3,733 3,444 3,786 25.5 24.9 14.6 17.1 10.8 9.2 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 1,596 - 43,751 20,099 22,642 21.7 22.9 89.6 1 04.7 17.8 15.2 2.9 2.5 17.7 17.9 2.0 1.9Construction

Ashoka Buildcon Buy 213 273 1,121 2,014 2,293 22.4 22.4 22.6 26.7 9.4 8.0 1.0 0.9 11.4 11.9 2.4 2.7

Consolidated Co Neutral 16 - 302 2,489 2,755 7.0 7.8 3.0 4.0 5.5 4.1 0.5 0.4 8.7 10.8 0.3 0.3

Hind. Const. Neutral 18 - 1,110 4,239 4,522 11.1 11.8 (1.8) (0.8) (10.2) (23.4) 1.0 1.2 (9.5) (4.7) 1.3 1.2

IRB Infra Buy 125 166 4,165 3,821 4,582 42.3 40.2 15.0 16.9 8.4 7.4 1.3 1.1 16.1 15.8 2.8 2.5

ITNL Buy 175 265 3,406 6,619 7,925 23.8 23.3 22.9 27.8 7.7 6.3 1.1 1.0 15.5 16.4 2.2 2.1

IVRCL Infra Buy 44 61 1,170 5,510 6,722 8.8 9.0 2.5 4.6 17.3 9.6 0.6 0.6 3.4 5.8 0.7 0.7

Jaiprakash Asso. Accumulate 74 88 15,746 15,259 17,502 25.7 24.7 4.2 5.0 17.5 14.8 1.4 1.3 8.5 9.3 2.4 2.1

Larsen & Toubro Accumulate 1,375 1,553 84,227 59,559 69,089 12.1 11.5 78.4 85.2 17.5 16.1 2.9 2.6 16.1 15.3 1.6 1.4

Madhucon Proj Buy 36 56 267 2,206 2,502 10.7 10.7 4.6 4.7 7.8 7.7 0.4 0.4 5.2 5.0 0.7 0.7

Nagarjuna Const. Neutral 39 - 999 5,453 6,169 8.1 8.5 1.6 1.9 23.7 20.2 0.4 0.4 1.8 2.1 0.6 0.7

Patel Engg. Neutral 91 - 637 3,609 3,836 13.1 13.1 14.0 14.6 6.5 6.3 0.4 0.4 6.3 6.1 1.0 1.1

Punj Lloyd Neutral 51 - 1,690 11,592 12,993 8.4 8.4 1.8 3.2 28.3 15.9 0.5 0.5 2.0 3.4 0.6 0.6

Sadbhav Engg. Buy 138 182 2,079 2,789 3,147 10.6 10.7 8.4 10.4 16.4 13.3 2.2 1.9 15.0 15.6 0.9 0.8

Simplex Infra Buy 211 265 1,044 6,732 7,837 8.1 8.4 23.5 29.4 9.0 7.2 0.8 0.8 9.6 11.0 0.5 0.4

FinancialsAllahabad Bank Accumulate 135 153 6,743 7,467 8,685 3.2 3.3 37.5 41.5 3.6 3.3 0.6 0.5 18.1 17.4 - -

Andhra Bank Neutral 108 - 6,041 5,225 6,024 3.3 3.3 22.7 25.4 4.8 4.3 0.7 0.7 16.0 15.8 - -

Axis Bank Buy 1,027 1,373 42,544 15,961 19,583 3.1 3.2 117.3 143.1 8.8 7.2 1.6 1.4 20.1 20.8 - -

Bank of Baroda Buy 682 921 26,715 16,157 19,475 2.7 2.7 123.7 148.3 5.5 4.6 0.9 0.8 17.3 18.1 - -

Bank of India Buy 320 388 18,370 13,657 15,902 2.5 2.6 59.5 70.6 5.4 4.5 0.9 0.7 16.2 16.9 - -

Bank of Maharashtra Neutral 47 - 2,789 3,471 3,889 3.1 3.1 9.0 11.5 5.2 4.1 0.7 0.6 13.7 15.5 - -

Canara Bank Buy 389 492 17,226 12,296 14,445 2.4 2.5 81.5 92.2 4.8 4.2 0.8 0.7 16.4 16.3 - -

Central Bank Reduce 75 70 5,484 7,001 8,211 2.5 2.6 14.0 20.6 5.3 3.6 0.8 0.7 11.0 14.5 - -


July 24, 2012

Market Outlook

Stock Watch


15/20



Financials

Corporation Bank Accumulate 411 465 6,091 5,294 6,070 2.3 2.3 106.3 110.1 3.9 3.7 0.7 0.6 17.7 16.2 - -

Dena Bank Accumulate 96 106 3,352 3,170 3,577 2.9 2.9 22.8 25.3 4.2 3.8 0.7 0.6 17.2 16.6 - -

Federal Bank Neutral 408 - 6,976 2,736 3,165 3.4 3.4 49.3 57.4 8.3 7.1 1.1 1.0 13.9 14.5 - -

HDFC Neutral 677 - 100,940 7,340 8,805 3.5 3.5 31.5 37.8 21.5 17.9 4.3 3.8 34.8 32.2 - -

HDFC Bank Neutral 574 - 135,159 21,936 27,454 4.4 4.4 28.7 36.0 20.0 15.9 3.8 3.2 20.7 22.0 - -

ICICI Bank Buy 912 1,169 104,878 22,368 26,857 2.8 2.9 68.2 80.4 13.4 11.4 1.6 1.5 14.2 15.4 - -

IDBI Bank Buy 90 113 11,506 8,152 9,907 1.9 2.1 19.7 24.1 4.6 3.7 0.6 0.5 13.6 15.0 - -Indian Bank Neutral 188 - 8,067 6,417 7,292 3.5 3.5 42.7 46.2 4.4 4.1 0.8 0.7 18.9 17.8 - -

IOB Accumulate 82 91 6,511 7,578 8,662 2.6 2.7 17.2 22.5 4.7 3.6 0.6 0.5 12.1 14.3 - -

J & K Bank Accumulate 924 979 4,479 2,525 2,858 3.5 3.5 175.8 183.1 5.3 5.1 0.9 0.8 19.3 17.5 - -

LIC Housing Finance Accumulate 248 286 12,533 2,104 2,607 2.7 2.7 24.5 30.6 10.2 8.1 1.9 1.6 20.1 21.4 - -

Oriental Bank Accumulate 235 269 6,845 6,497 7,533 2.8 2.8 53.4 63.9 4.4 3.7 0.6 0.5 13.3 14.3 - -

Punjab Natl.Bank Buy 805 1,050 27,317 20,142 23,929 3.2 3.3 153.3 174.3 5.3 4.6 1.0 0.8 18.3 18.0 - -

South Ind.Bank Neutral 24 - 2,690 1,514 1,717 2.8 2.7 4.0 4.2 6.0 5.6 1.1 1.0 20.5 18.5 - -

St Bk of India Accumulate 2,093 2,443 140,419 67,783 78,208 3.7 3.6 226.0 264.2 9.3 7.9 1.5 1.3 17.7 18.1 - -

Syndicate Bank Buy 98 118 5,917 7,176 8,299 3.1 3.1 25.1 29.1 3.9 3.4 0.6 0.6 17.6 17.8 - -

UCO Bank Neutral 74 - 4,926 5,642 6,438 2.5 2.5 16.4 17.6 4.5 4.2 0.8 0.8 16.2 15.4 - -

Union Bank Buy 189 256 10,392 10,623 12,404 3.0 3.0 42.5 49.6 4.4 3.8 0.7 0.6 16.9 17.2 - -

United Bank Buy 57 78 2,074 3,599 4,212 2.8 3.0 18.2 22.3 3.2 2.6 0.5 0.4 15.0 16.2 - -

Vijaya Bank Reduce 55 52 2,728 2,695 3,097 2.2 2.3 9.6 12.0 5.7 4.6 0.7 0.6 12.0 13.6 - -

Yes Bank Buy 341 454 12,065 3,250 4,261 2.8 2.9 34.1 42.8 10.0 8.0 2.1 1.7 23.2 23.9 - -

FMCG

Asian Paints Neutral 3,602 - 34,548 11,423 13,309 16.3 16.3 125.3 148.4 28.8 24.3 9.8 7.7 38.0 35.4 3.0 2.5Britannia Buy 498 633 5,945 5,835 6,824 6.3 6.7 20.7 27.5 24.0 18.1 9.4 7.0 42.7 44.3 1.0 0.9

Colgate Neutral 1,168 - 15,882 3,007 3,417 21.1 22.1 38.2 43.8 30.6 26.7 36.4 28.6 130.2 119.9 5.1 4.5

Dabur India Neutral 118 - 20,591 5,878 6,799 16.8 17.0 4.2 4.9 28.5 24.1 10.3 8.4 39.3 42.0 3.4 3.0

GlaxoSmith Con* Neutral 2,660 - 11,187 3,124 3,663 17.1 17.6 103.0 123.3 25.8 21.6 8.0 6.4 34.0 32.9 3.2 2.7

Godrej Consumer Neutral 584 - 19,883 5,973 7,000 18.4 18.6 22.8 27.2 25.6 21.5 7.0 5.7 31.3 38.4 3.4 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 250 - 195,348 29,588 34,063 35.4 35.8 9.3 10.9 26.7 23.0 8.6 7.0 35.2 33.8 6.4 5.5


July 24, 2012

Market Outlook

Stock Watch


16/20



FMCG

Marico Neutral 183 - 11,763 4,667 5,427 12.8 12.9 6.6 8.1 27.5 22.4 7.4 5.8 30.0 28.8 2.6 2.1

Nestle* Neutral 4,467 - 43,065 8,731 10,539 21.0 21.4 114.4 143.0 39.0 31.2 23.5 16.2 71.1 61.4 5.0 4.1

Tata Global Accumulate 116 136 7,152 7,011 7,711 9.7 10.0 6.3 7.5 18.5 15.5 1.8 1.7 9.5 10.9 1.0 0.9

IT

HCL Tech Buy 478 562 33,115 24,029 26,633 18.3 17.2 39.6 43.2 12.1 11.1 2.7 2.3 22.9 21.0 1.4 1.2

Hexaware Buy 113 132 3,337 1,921 2,178 20.6 20.0 10.4 11.4 10.9 9.9 2.6 2.3 24.7 23.4 1.5 1.3

Infosys Accumulate 2,186 2,530 125,535 39,151 41,743 31.6 31.9 161.9 174.5 13.5 12.5 3.2 2.8 23.8 22.1 2.7 2.4Infotech Enterprises Neutral 178 - 1,983 1,825 2,008 17.5 17.1 16.9 18.7 10.5 9.5 1.4 1.3 13.7 13.3 0.7 0.6

KPIT Cummins Neutral 122 - 2,182 2,145 2,316 16.0 14.8 9.9 11.3 12.3 10.8 2.4 2.0 20.8 19.1 1.0 0.8

Mahindra Satyam Accumulate 82 87 9,656 7,492 8,038 17.0 16.3 8.1 8.3 10.1 9.9 1.4 1.2 14.1 12.6 0.9 0.8

Mindtree Accumulate 653 708 2,658 2,341 2,513 18.6 17.1 66.5 70.8 9.8 9.2 2.2 1.8 22.3 19.3 0.9 0.8

Mphasis Neutral 400 - 8,414 5,704 6,009 18.6 17.7 36.0 37.1 11.1 10.8 1.6 1.4 14.0 12.6 1.0 0.8

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 385 - 1,541 1,187 1,274 26.7 26.0 34.5 42.6 11.2 9.0 1.6 1.4 14.4 15.4 1.0 0.9

TCS Accumulate 1,214 1,304 237,567 61,046 67,507 29.3 29.1 67.3 72.4 18.0 16.8 5.8 4.8 31.9 28.3 3.6 3.3

Tech Mahindra Neutral 715 - 9,124 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 356 451 87,701 44,597 49,033 20.3 20.5 26.6 30.1 13.4 11.9 2.6 2.2 19.5 18.9 1.7 1.4

Media

D B Corp Buy 200 236 3,665 1,597 1,785 22.9 24.2 11.1 13.9 18.0 14.4 3.4 3.0 20.2 22.1 2.2 1.9

HT Media Buy 90 113 2,115 2,111 2,263 15.2 15.2 7.3 8.1 12.3 11.1 1.3 1.2 11.2 11.2 0.6 0.4

Jagran Prakashan Buy 87 125 2,756 1,521 1,698 22.6 23.1 6.2 6.4 14.2 13.5 3.4 3.0 20.7 23.9 2.0 1.8

PVR Neutral 166 - 430 625 732 16.5 15.7 11.9 13.3 13.9 12.5 1.4 1.2 11.9 12.0 1.1 0.9

Sun TV Network Neutral 281 - 11,066 2,002 2,296 77.1 76.7 18.9 22.1 14.9 12.7 3.8 3.3 27.7 28.3 5.3 4.4Metals & Mining

Bhushan Steel Reduce 471 429 10,010 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 - 224,357 68,841 74,509 25.3 25.3 24.1 26.1 14.8 13.6 4.0 3.3 30.4 26.8 2.4 2.1

Electrosteel Castings Buy 20 22 687 1,984 2,074 11.2 12.6 2.0 2.7 9.8 7.4 0.4 0.2 4.2 5.5 0.5 0.5

Hind. Zinc Buy 116 141 49,014 13,050 14,585 51.4 52.1 14.5 16.5 8.0 7.0 1.5 1.3 20.8 19.9 2.1 1.4

Hindalco Neutral 116 - 22,266 83,212 91,057 9.0 9.9 13.7 18.1 8.5 6.4 0.7 0.6 7.9 9.6 0.5 0.5

JSW Steel Neutral 677 - 15,097 39,592 44,910 18.0 17.7 74.7 88.9 9.1 7.6 0.9 0.8 10.7 11.6 0.7 0.7

MOIL Accumulate 273 296 4,593 1,007 1,091 56.6 56.9 29.4 31.9 9.3 8.6 1.7 1.5 19.0 18.2 2.4 2.0

Monnet Ispat Accumulate 385 447 2,477 3,115 3,748 22.1 25.1 59.1 66.8 6.5 5.8 0.9 0.8 15.6 15.3 1.6 1.2


July 24, 2012

Market Outlook

Stock Watch


17/20


18/20



Real Estate

HDIL Buy 76 115 3,195 2,441 3,344 55.1 48.2 22.7 26.6 3.4 2.9 0.3 0.3 8.8 9.4 3.3 2.5

MLIFE Buy 317 376 1,296 814 897 26.9 27.0 31.3 33.9 10.1 9.4 1.0 1.0 10.2 10.1 2.0 1.7

Telecom

Bharti Airtel Neutral 304 - 115,388 80,076 86,613 32.8 33.5 15.5 19.8 19.7 15.3 2.1 1.8 10.5 11.9 2.2 1.9

Idea Cellular Neutral 80 - 26,610 23,209 26,063 26.2 27.5 3.3 4.9 24.4 16.3 1.9 1.7 7.7 10.3 1.6 1.4

Rcom Neutral 62 - 12,766 22,125 23,734 31.9 32.0 4.5 5.9 13.8 10.6 0.3 0.3 2.5 3.1 2.0 1.7

zOthersAbbott India Accumulate 1,474 1,628 3,131 1,661 1,918 9.7 12.0 60.7 90.4 24.3 16.3 5.0 4.0 22.0 27.3 1.7 1.4

Bajaj Electricals Buy 185 246 1,842 3,569 4,172 8.6 9.2 17.3 22.3 10.7 8.3 2.3 1.9 22.9 25.3 0.5 0.5

Cera Sanitaryware Accumulate 297 327 375 405 477 15.8 17.2 31.0 41.0 9.6 7.2 2.1 1.7 24.3 25.8 1.1 0.9

Cravatex Buy 641 785 166 302 364 5.7 6.0 49.0 71.0 13.1 9.0 3.9 2.8 29.8 30.7 0.7 0.6

CRISIL Neutral 978 - 6,865 982 1,136 34.3 34.3 34.3 40.0 28.5 24.5 12.9 10.3 50.9 46.9 6.7 5.6

Finolex Cables Buy 40 61 616 2,334 2,687 8.8 9.3 7.6 10.2 5.3 3.9 0.7 0.6 13.7 16.1 0.2 0.1

Force Motors Buy 476 615 620 2,346 2,753 5.8 6.7 44.0 68.0 10.8 7.0 0.5 0.5 4.8 7.0 0.2 0.2

Goodyear India Accumulate 317 374 731 1,511 1,692 7.9 9.0 31.5 41.3 10.1 7.7 2.0 1.7 21.2 23.5 0.3 0.2

Graphite India Buy 82 124 1,600 2,158 2,406 18.1 18.9 12.4 14.0 6.6 5.8 0.9 0.8 14.0 14.3 0.9 0.7

Greenply Industries Buy 185 309 447 1,925 2,235 10.6 10.9 29.6 44.1 6.3 4.2 1.0 0.8 16.8 21.0 0.5 0.4

HEG Buy 207 242 828 1,746 1,946 16.5 17.7 22.5 32.9 9.2 6.3 0.9 0.9 10.4 14.2 1.1 1.1

Hitachi Buy 117 160 268 857 968 6.9 8.4 10.2 16.0 11.5 7.3 1.4 1.2 12.9 17.8 0.4 0.4

Honeywell Automation Buy 2,416 2,864 2,136 1,761 2,024 6.7 8.2 95.0 127.0 25.4 19.0 3.0 2.6 14.1 16.3 1.1 1.0

INEOS ABS India Buy 686 804 1,207 900 1,020 9.0 11.1 33.0 45.0 20.8 15.3 2.8 2.4 14.3 17.0 1.1 1.0

ITD Cementation Neutral 233 - 268 1,535 1,842 11.1 11.1 27.3 38.3 8.5 6.1 0.7 0.6 7.9 10.2 0.6 0.6

Jyothy Laboratories Buy 120 268 1,935 1,315 1,568 8.6 11.1 6.4 10.9 18.8 11.0 1.6 1.5 8.4 13.9 1.8 1.5MCX Buy 1,079 1,598 5,503 610 702 65.5 67.0 67.9 79.9 15.9 13.5 4.6 3.9 29.1 28.9 6.4 5.1

MRF Buy 9,933 13,106 4,213 12,390 14,400 10.4 11.3 1,334.6 1,638.2 7.4 6.1 1.5 1.2 16.5 17.4 0.5 0.5

Page Industries Neutral 2,863 - 3,193 887 1,108 18.3 18.6 95.0 120.9 30.2 23.7 15.7 12.8 57.4 59.5 3.6 2.9

Relaxo Footwears Buy 515 618 618 1,019 1,220 11.2 12.2 44.2 61.8 11.7 8.3 2.8 2.1 26.8 28.6 0.8 0.7

Sintex Industries Buy 61 79 1,672 4,751 5,189 16.3 16.6 13.6 15.8 4.5 3.9 0.6 0.5 12.9 13.2 0.7 0.6

Siyaram Silk Mills Buy 286 392 268 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

S. Kumars Nationwide Buy 32 45 938 7,279 8,290 21.0 21.0 15.0 17.6 2.1 1.8 0.3 0.2 13.7 13.9 0.7 0.7

SpiceJet Buy 32 40 1,550 5,647 6,513 3.5 6.5 1.9 4.9 16.5 6.5 38.7 5.6 - - 0.4 0.4


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zOthers

TAJ GVK Buy 66 108 414 300 319 35.8 36.2 7.9 9.1 8.4 7.3 1.1 1.0 13.9 14.4 1.7 1.5

Tata Sponge Iron Buy 343 420 528 700 806 18.2 18.2 55.6 65.1 6.2 5.3 0.8 0.7 14.2 14.8 0.3 0.2

TVS Srichakra Buy 341 462 261 1,612 1,827 9.5 9.8 72.3 92.5 4.7 3.7 1.4 1.0 33.1 32.1 0.4 0.3

United Spirits Neutral 805 - 10,526 10,289 11,421 13.5 14.3 31.0 42.9 25.9 18.8 2.0 1.8 8.1 10.3 1.7 1.5

Vesuvius India Accumulate 369 413 748 628 716 16.4 16.5 29.8 34.4 12.4 10.7 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 23, 2012


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July 24, 2012Market Outlook

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