Market Outlook 26-10-12

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Market Outlook October 26, 2012

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Dealers Diary The Indian markets are expected to open in the red following negative start to SGX Nifty and other major Asian indices.

The US markets ended slightly higher on Thursday as several reports indicated amore favorable outlook for the global economy. The initial strength on Wall Streetwas partly due to a positive reaction to a batch of largely upbeat economic data,including a report showing that the UK emerged from recession in 3QCY2012.The UK economy grew 1% after contracting in each of the three previous quarters.

According to the US Labor Department release, initial jobless claims showed abigger than expected drop to 369,000 from the previous week's revised figure of392,000. Additionally, a report from the Commerce Department showed thatdurable goods orders rebounded by 9.9% in September after tumbling by 13.1% in

August. However, pending home sales numbers increased slightly lower-than-expected by 0.3% to a reading of 99.5 in September.

Going ahead, earning releases and economic data may attract attention on Friday.The Commerce Department is scheduled to release its initial report on US GDP inthe third quarter.

Markets Today

The trend deciding level for the day is 18,749 / 5,703 levels. If NIFTY trades abovethis level during the first half-an-hour of trade then we may witness a further rally up to 18,799 18,840 / 5,721 5,736 levels. However, if NIFTY trades below18,749 / 5,703 levels for the first half-an-hour of trade then it may correct up to18,708 18,658 / 5,688 5,670 levels.

SENSEX 18,658 18,708 18,749 18,799 18,840NIFTY 5,670 5,688 5,703 5,721 5,736

News Analysis Sun TV buys IPL franchise Apollo Tyres workers at Limda plant goes on strike CESC to acquire controlling stake in Firstsource IRB shocks crashes on reports of Gadkari links 2QFY2013 Result Review: MM, Asian Paints, Nalco, OBC, Ipca Labs, BEL 2QFY2013 Result Preview: NTPC, ICICI, HUL, Gail, PNB, Dabur JSW Steel,

Sesa Goa, IOB, United BankRefer detailed news analysis on the following page

Net Inflows (October 23, 2012)

FII 2,319 1,893 427 12,637 57,842MFs 297 495 (198) (2,284) (10,206)

FII Derivatives (October 25, 2012)

Index Futures 6,317 5,413 904 10,172Stock Futures 8,429 9,160 (731) 27,933

Gainers / Losers

Oriental Bank 314 7.1 IRB Infra. 119 (15.7)

Indiabulls Fin. 254 4.7 Havells India 620 (4.2)

Bajaj Finserve 922 4.4 Sun TV Network 344 (3.5)

Yes Bank 417 4.3 Oberoi Realty 270 (3.4)

M&M 858 3.6 United Spirits 1,225 (3.1)

BSE Sensex 0.3 48.6 18,759

Nifty 0.2 13.9 5,705

MID CAP 0.2 10.1 6,659SMALL CAP (0.2) (12.1) 7,161

BSE HC (0.4) (27.5) 7,570

BSE PSU (0.2) (12.4) 7,347

BANKEX 0.4 46.6 13,340

AUTO 0.6 59.3 10,207

METAL (0.2) (20.9) 10,235

OIL & GAS 0.2 13.9 8,470

BSE IT (0.1) (5.8) 5,692

Dow Jones 0.2 26.3 13,104NASDAQ 0.2 4.4 2,986

FTSE 0.0 0.3 5,805

Nikkei 1.1 100.9 9,055

Hang Seng 0.2 46.5 21,810

Straits Times 0.4 12.8 3,058

Shanghai Com (0.7) (14.4) 2,102

INFY 1.1 0.5 $43.5

WIT (0.2) (0.0) $8.1IBN 1.4 0.5 $40.3

HDB 1.6 0.6 $37.4

Advances 1,288 603

Declines 1,556 903

Unchanged 138 67

BSE 2,543NSE 13,541

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Sun TV buys IPL franchise

Sun TV has bought the Indian Premier League ( IPL) Hyderabad franchise for ` 85.05 crores per year. The BCCI had set a base price of ` 300 crore for the 10-year contract for the new IPL team to replace Deccan Chargers. According to

media reports, Sun TV has submitted a ` 20cr performance deposit during thesubmission of bids, which BCCI would forfeit if they fail to provide an annual bankguarantee of ` 405.3cr. V C Unnikrishnan, CFO of Sun TV said that the acquisitionof IPL team in Hyderabad will be funded through internal accruals. He expectedthe acquisition to enhance the brand image of Sun TV.

Apollo Tyres workers at Limda plant goes on strike

Apollo Tyres Limda plant has witnessed a labor strike due to which the production

at the plant has been disrupted from October 23, 2012. The workers have beenprotesting against the company's refusal to recognize the newly formed workers'union Bharatiya Majdoor Sangh (BMS) within the plant as well as suspension oftwo employees. According to media reports, workers are unhappy as twocommittees formed for the welfare of the workers in the past could not address theworkers' concerns. As per reports, ~1,500 workers (total strength ~7,000) havestopped going to work since October 23, 2012 and have threatened to go onindefinite strike soon if their demands are not met. The management is making allefforts to resolve the issue. The Limda plant has a production capacity of475MT/day and manufactures passenger car radial, truck and bus (bias) and offthe road tyres. While, we see this as negative for the company; we would awaitmore clarity on this development. At ` 86, the stock is trading at 6.1x FY2014Eearnings.

CESC to acquire controlling stake in Firstsource

CESC has agreed to pay around ` 400cr for a 49.5% holding in Firstsource. Thedeal values Firstsource at ` 795cr on its expanded equity base. At its current stockprice, Firstsource has a market capitalization of ` 613cr. CESC will acquire 34.5%in Firstsource through a preferential allotment and a further 15% from the existinginvestors (ICICI Bank, Aranda Investment of Temasek Holdings, and MetavanteInvestments) for ` 12.2 apiece. CESC will also offer to buy another 26% frompublic shareholders .

IRB shocks crashes on reports of Gadkari links

The share price of IRB Infrastructure came under pressure for its improper businesslink with Nitin Gadkari as alleged in the media reports. IRB has denied thisallegation in the clarification issued to the stock exchange.

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Result Review

(CMP: ` 858/ TP: ` 944/ Upside: 10%)

Mahindra and Mahindra (MM) reported extremely strong results for 2QFY2013riding on the robust growth of its automotive segment. For 2QFY2013, top-lineregistered an in-line growth of 33.4% yoy (4.8% qoq) to ` 9,813cr driven by 58.3%yoy (13.9% qoq) growth in the automotive segment revenues. Total volumesregistered a modest growth of 6.9% yoy (2.9% qoq) as the farm equipmentsegment volumes declined 13.1% yoy (16.3% qoq) in the wake of a below normalmonsoon. Automotive segment volumes, however, posted a strong 16.3% yoy (12.1% qoq) growth led by 31.5% yoy growth in the utility vehicle portfolio backedby XUV5OO. The net average realization jumped 15.6% yoy (down 6% qoq) led by higher share of premium products (mainly XUV5OO) in the volume-mix and priceincreases over the last one year.

On the operating front, EBITDA margins contracted 60bp yoy (44bp qoq) to 11.4%largely due to raw-material cost pressures. As a result, total raw-material cost as apercentage of sales increased 234bp yoy (flat qoq) to 74.9%. However, employeeand other expenditure declined by 100bp and 80bp yoy respectively mainly due tooperating leverage benefits. EBIT margins in the automotive and farm equipmentsegments declined by 53bp (up 59bp qoq) and 55bp yoy (90bp qoq) to 9.4% and14.8%, respectively. Nonetheless, led by strong volume growth in the automotivesegment, automotive EBIT registered an impressive growth of 49.9% yoy (21.5%qoq). As a result, MMs adjusted net profit grew strongly by 22.4% yoy (24.3%qoq) to ` 902cr. The benefits of 30% yoy growth in other income (due to 28.2%increase in dividends from subsidaries) were negated by 41.9% yoy (15.2% qoq)

increase in depreciation expense (related to Quanto launch) during the quarter. At ` 858, the stock is trading at 15.2x FY2014E earnings. We shall revise our

estimates and come up with a detailed result update soon.

FY2013 37,434 11.6 2,966 50.4 22.6 17.0 3.6 9.5 1.0FY2014 42,860 11.5 3,317 56.3 21.5 15.2 3.0 8.1 0.8

Asian paints (CMP: ` 3,898/ TP: -/Upside: -)

Asian Paints posted a 16.2% yoy growth in its consolidated topline to ` 2,616cr,which was slightly ahead of our estimates. The topline growth is largely on accountof price hikes taken by the company as volume growth is expected to have beenmuted. OPM fell by 54bp yoy to 13.8%. Bottomline rose by 14.6% yoy to ` 239cr.

FY2013 11,198 16.3 1,161 121.0 37.4 32.4 10.9 20.0 3.3FY2014 13,184 16.3 1,389 144.8 35.3 27.0 8.5 16.8 2.7

Nalco (CMP: ` 50 /TP: /Upside: -)

Nalco reported an operating loss for 2QFY2013 due to lower aluminium pricesand higher power and fuel costs. Results were significantly below our expectations.

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Net sales grew marginally by 0.1% yoy to ` 1,586cr (below our estimate of ` 1,890cr). Its aluminium production decreased by 2.9% yoy to 102,000 tonneswhile alumina production increased by 2.6% yoy to 398,000 tonnes. Power costsas a percentage of net sales stood at 47.5%, compared to 40.3% in 2QFY2012.Further, other manufacturing expenses as a percentage of net sales stood at

19.4%, compared to 6.3% in 2QFY2012. Hence, Nalco reported an EBITDA lossof ` 2cr, compared to an EBITDA of ` 153cr reported in 2QFY2012. Other income,however, grew by 5.3% yoy to ` 139cr. Consequently, the company reported a netprofit of ` 5cr (significantly above our estimate of ` 212cr), compared to ` 139cr in2QFY2012.

FY2013 7,401 16.7 882 3.4 7.4 14.6 1.1 7.5 1.3FY2014 7,841 19.2 1,055 4.1 8.4 12.2 1.0 6.3 1.2

(CMP: ` 314/ TP: -/ Upside: -)

OBC reported a strong performance for 2QFY2013. The banks net profit grew by a strong 80.2% yoy to ` 302cr, which were lower than our estimates due to highertax rate than estimated by us.

The bank has shed ~6,000cr of bulk deposits during the last 6 monthsleading to slower growth on the advances front. The bank is expected to pickup pace in its loan growth hereon and as per the management excess SLR andtraction in retail deposits, despite further reduction in bulk deposits, should be

able to fund higher loan growth. Reduction in bulk deposits has led toimprovement in margins for the bank on a sequential basis.

The banks restructuring book increased by ` 329cr during 2QFY2013, takingthe total restructuring book to ` 11,493cr. The management expects ` 2,500crof restructuring during 2QFY2013. Slippages were under control during2QFY2012 with annualised slippage rate at 2.3%. Gross NPA stood at 2.9%while the net NPA for the bank stood at 2.1%.

FY2013 6,278 2.7 1,654 56.7 405.6 0.9 14.1 5.0 0.7FY2014 7,125 2.8 1,827 62.6 457.2 0.9 13.9 4.5 0.6

IPCA Labs (CMP ` 463/ TP: -/ Upside: -)

IPCA Labs results were above expectations. Ipcas top-line grew by 22.6% to ` 758cr for 2QFY2013. The OPM came just in line with the expectations at 21.8%,a decline of 280bp yoy. However, in spite of the same the net profit came in atRs125cr, up 60.5% yoy, on account of the higher rise in other income and theinterest expenses.

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FY2013 2,850 20.7 368 29.2 26.1 15.9 3.7 10.7 2.2FY2014 3,474 20.7 462 36.6 26.1 12.6 3.0 8.7 1.8

Bajaj Electricals Ltd (CMP: ` 215/ TP: ` 238/ Upside: 10%)

Bajaj Electricals Ltd. (BEL) reported decent set of numbers for 2QFY2013. Top-linegrew by 4.7% yoy and 10.2% qoq and came in at ` 734cr, vis--vis our expectationof ` 830cr. EBITDA stood at ` 24cr which was lower by 53.7% yoy and 29.6% qoq.Overall operating margins dip by 250bp qoq and 418bp yoy and came in at3.3%.

Revenue from consumer durables segment grew by 17.5% yoy and came in at ` 399cr (54.3% of total revenue). EBIT for the segment came in at ` 37cr, 14.3%higher yoy while the margins declined by 20bp yoy to 9.3%.

Lighting segment grew by 6.6% yoy and came in at ` 202cr contributing 27.5% toBELs total revenue. Profit for the segment stood at ` 13cr almost flat yoy while themargins declined by 40bp to 6.5%.

Engineering & Projects segments revenue de-grew by 22.5% yoy and came in at ` 133cr (18% of total revenue) and reported a loss of ` 27cr which was thoughoffset by onetime income of ` 24.7cr accrued from sale of BELs entire 50%holdings in Bajaj Ventures to Black and Decker during the quarter. E&P projectswhich have been hurting the profitability, on account of delay in completioncoupled with cost overrun is expected to end 18 of its 24 old sites by FY2013thereby improving the profitability thereafter.

Tax expense for the quarter was low at ` 5cr, 17% of PBT which helped to sustainthe bottom line at ` 27cr vis--vis ` 25cr in the same quarter previous year and ourestimate of ` 27.6cr.

FY2013E 3,649 5.3 98 10 18.3 21.8 2.8 12.0 0.6FY2014E 4,235 7.7 182 18 29.4 11.8 2.3 7.0 0.5

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Result Preview

NTPC (CMP: ` 170 / TP: - / Upside: - %)

For 2QFY2013, we expect NTPC to record a 4.9% yoy increase in its top line to ` 16,126cr, driven largely by better realizations. Operating Margins are expectedto expand by 114bp yoy to 22.2% due to better plant availability. However, Netprofit is expected to decline by a marginal 2.5% yoy to ` 2,365cr.

FY2013E 74,111 22.7 9,972 12.1 12.6 14.0 1.7 11.0 2.5

FY2014E 85,789 23.1 11,333 13.7 13.2 12.3 1.6 10.0 2.3

(CMP: ` 1,079 / TP: - 1,245/ Upside: - 15.4%)

ICICI Bank is scheduled to announce its 2QFY2013 results today. We expect thebank to report a strong 31.8% yoy growth in Net Interest Income to ` 3,303cr.Growth in non-interest income is expected to reasonable healthy at 16.9% yoy to

` 2,033cr. Provisioning expenses are expected to increase by 51.9% yoy to ` 484cr,hence PAT is expected to grow by a relatively lower, but stills strong 24.2% yoy to

` 1,868cr.

At the CMP, the stock is trading at 1.7x FY2014E ABV.

FY2013E 22,304 2.9 7,904 68.6568.6 1.4 14.2 15.7 1.9

FY2014E 26,855 3.0 9,456 82.0622.1 1.4 15.5 13.2 1.7

HUL (CMP: ` 564/ TP: -/Upside: -)

HUL is expected to announce its 2QFY2013 results today. We expect the topline togrow by 11.5% yoy to ` 6,155cr aided by healthy double-digit growth in both theSoaps & Detergents and the Personal Products segments. OPM is expected toremain flat at 13.3%. Bottomline is expected to grow by 11.4% yoy to ` 718cr.

FY2013E 25,350 13.9 3,081 14.3 70.9 39.6 23.5 33.2 4.6

FY2014E 28,974 13.9 3,561 16.5 59.8 34.2 18.1 28.6 4.0

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GAIL (CMP: ` 360/ TP: -/ Upside: -)

GAIL is expected to announce its 2QFY2013 results today. We expect thecompanys top-line to grow by 25.7% yoy to ` 12,196cr. However, the operatingmargin is expected to contract by 159bp yoy to 15.7% on the back of higher

depreciation and interest costs. On the bottom-line front, we expect GAIL to reportan increase of 3.2% yoy to ` 1,129cr due to decrease in operating margins.

FY2013E 50,176 15.5 4,488 35.4 18.9 10.2 1.8 5.2 0.8

FY2014E 55,815 15.8 4,634 36.5 17.0 9.9 1.6 4.3 0.7

(CMP: ` 818 / TP: - 966/ Upside: - 18%)

PNB is scheduled to announce its 2QFY2013 results today. We expect the bank toreport a flat bottom-line growth to ` 1,210cr. Operating income is expected togrow by moderate 11.1% yoy, driven by 20.9% yoy growth in non-interest income.The banks asset quality has been deteriorating lately and hence we have factoredin a 39.1% yoy growth in provisioning expenses. At the CMP, the stock is trading at0.8x FY2014E ABV.

FY2013E 19,934 3.3 5,011 147.7 843.3 1.0 17.7 5.4 0.9

FY2014E 22,705 3.3 5,638 166.2 990.5 1.0 17.3 4.8 0.8

Dabur (CMP: ` 133/ TP: -/ Upside: -)

Dabur is expected to announce its 2QFY2013 results today. We expect the toplineto grow by 21.3% yoy to ` 1,531cr. Topline growth is expected to be driven by bothhigher volume and price hikes. OPM is expected to decline by 189bp yoy to16.9%. Bottomline is expected to grow by 9.5% yoy to ` 190cr.

FY2013E 6,124 17.0 779 4.5 43.2 29.7 12.2 22.6 3.8

FY2014E 7,030 16.8 902 5.2 41.4 25.6 9.7 19.7 3.3

JSW Steel (CPM: ` 730/ TP: -/ Upside: -)

JSW Steel is slated to announce its 2QFY2013 results on 28.10.2012. We expectits standalone net sales to grow by 9.0% yoy to ` 8,315cr mainly on account ofincreased sales volumes as well as realizations and operating margin is expectedto expand by 220bp yoy to 19.2% mainly on account of lower raw material costs.

Nevertheless, the net profit is expected to increase by 27.8% yoy to ` 818cr.

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FY2013E 38,740 17.2 1,782 79.9 10.4 9.1 0.9 4.9 0.9

FY2014E 41,459 17.0 1,994 89.4 10.6 8.2 0.8 4.8 0.8

Sesa Goa (CMP: ` 169/ TP:-/ Upside :-)

Sesa Goa is slated to announce its 2QFY2013 result today. We expect thecompanys top-line to decrease by 8.2% yoy to ` 725cr and its EBITDA margin tocontract by 781bp yoy to 25.1% due to decline in iron ore prices, rising costs andhigher export duty. Nevertheless, the bottom-line is expected to grow by 5.1% yoy to ` 247cr despite a decline in operating profits due to contribution of share ofprofits from its associate, Cairn India.

FY2013E 7,704 33.6 3,737 42.0 22.3 4.0 0.8 6.6 2.2

FY2014E 8,034 34.6 3,830 43.1 19.2 3.9 0.7 6.0 2.1

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

Indian Overseas Bank is slated to announce its 2QFY2013 results today. Weexpect the bank to report a moderate Net Interest Income (NII) growth of 9.8% yoy to ` 1,390cr. Non-interest income is expected to decline by 5.9% yoy to ` 402cr.Operating expenses of the bank are expected to be higher by 11.3% yoy to

` 876cr. However, Net Profit is expected to go up by strong 44.6% yoy to ` 300cr,on account of 21.9% yoy decline in provisioning expenses (on high base of2QFY2012). At the CMP, the stock trades at a valuation of 0.5x FY2014E ABV.

FY2013E 7,343 2.5 1,274 16.0 139.8 0.5 11.3 4.9 0.6

FY2014E 8,391 2.5 1,697 21.3 157.7 0.6 13.6 3.7 0.5

(CMP: ` 66 / TP: ` 81 / Upside: 22.7%)

United Bank is scheduled to announce its 2QFY2013 results today. We expect thebank to report a moderate NII growth of 13.5% yoy to ` 707cr. Operatingexpenses are expected to increase by 8.6% yoy, leading to operating profit growthof 7.1% on a yoy basis at ` 482cr. However, 6.9% yoy decline in provisioningexpenses would aid strong Net Profit growth of 30.2% on a yoy basis to ` 162cr. Atthe CMP, the stock is trading at 0.5x FY2014E ABV.

FY2013E 3,572 2.8 700 17.2 121.7 0.7 14.2 3.7 0.5

FY2014E 4,041 2.9 875 22.0 141.0 0.7 16.2 2.9 0.5

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Quarterly Bloomberg Brokers Consensus Estimate

Net sales 1,515 1,262 20 1,462 4

EBITDA 272 241 13 232 17EBITDA margin (%) 18.0 19.1 15.9

Net profit 199 174 14 172 16

Net sales 11,270 9,699 16 11,089 2

EBITDA 1,761 1,676 5 1,922 (8)

EBITDA margin (%) 15.6 17.3 17.3

Net profit 1,060 1,094 (3) 1,134 (7)

Net sales 6,273 5,522 14 6,250 0

EBITDA 929 827 12 976 (5)

EBITDA margin (%) 14.8 15.0 15.6

Net profit 772 689 12 1,331 (42)

Net profit 1,874 1,815 3 1,503 25

Net profit 428 524 (18) 381 12

Net sales 15,552 15,378 1 15,960 (3)

EBITDA 3,392 3,560 (5) 3,837 (12)

EBITDA margin (%) 21.8 23.1 24.0

Net profit 2,170 2,424 (10) 2,499 (13)

Net profit 1,241 1,205 3 1,246 (0)

Net sales 373 784 (52) 1,725 (78)

EBITDA 96 260 (63) 676 (86)

EBITDA margin (%) 25.6 33.2 39.2Net profit 596 1 45746 964 (38)

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Net profit 532 516 3 427 25

Net sales 8,972 8,134 10 9,902 (9)

EBITDA 1,529 1,394 10 1,908 (20)

EBITDA margin (%) 17.0 17.1 19.3

Net profit 496 (665) (175) 51 873

Net sales 11,176 10,299 9 83,262 (87)

EBITDA 1,886 1,959 (4) 1,202 57

EBITDA margin (%) 16.9 19.0 1.4Net profit 1,346 1,412 (5) 921 46

Net profit 779 491 59 887 (12)

Net sales 780 657 19 736 6

EBITDA 157 131 20 162 (3)EBITDA margin (%) 20.1 19.9 22.0

Net profit 122 100 22 117 4

Economic and Political News

Decision on sugar import duty revision after three months: Sharad Pawar India seeks Israeli expertise in renewable energy sector Commerce ministry to approach Cabinet over tax incentives to SEZs

Corporate News Sun TV Network buys new IPL franchise Kingfisher Airlines staff agrees to resume work Adani to hike stake in power subsidiary to 75% Lupin gets USFDA nod to market generic contraceptive tablets

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

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Date Company

October 26, 2012 NTPC, ICICI Bank, HUL, GAIL, Punjab Natl.Bank, Sesa Goa, IDFC, Dabur India, IOB, United Bank, Hind. Const.

October 27, 2012 IDBI Bank, Sarda Energy, Siyaram Silk Mills

October 28, 2012 JSW Steel

October 29, 2012 BHEL, Bank of India, Colgate, Jagran Prakashan, Greenply, Styrolution

October 30, 2012 Maruti, Dr Reddy's, Grasim Inds, Shriram Trans., Mahindra Satyam, Glenmark Pharma., IRB Infra, Thermax, Taj GVK,Jyoti Structures, PVR, JK TyreOctober 31, 2012 J & K Bank, Power Grid Corpn, NHPC, Titan Inds., LIC Housing Fin., Bharat Forge, Tata Global, Aventis, TVS Motor

November 01, 2012 Hexaware, BGR Energy , Jyothy Laboratories

November 02, 2012 Wipro, Rural Elec.Corp., Union Bank, Marico, Apollo Tyres, Indoco Remedies, Dishman Pharma

November 03, 2012 Godrej Consumer, Divi's Lab.

November 04, 2012

November 05, 2012 Tech Mahindra, Allahabad Bank, Gujarat Gas, Vijaya Bank, Madras Cements, India Cements, CEAT, ITDCementation, Vesuvius India

November 06, 2012 Hindalco, Tata Power Co., Bosch India, ABB, Andhra Bank, Central Bank, Britannia, ITNL, Dena Bank, Amara RajaBatteries, GIPCLNovember 07, 2012 Bharti Airtel, Cadila Healthcare, Indraprasth Gas, GSPL

November 08, 2012 Ranbaxy, Ashok Leyland, Page Industries, Nagarjuna Const.

November 09, 2012 ONGC, BPCL, GSK Pharma, GlaxoSmith Con, Tata Chemicals, Aurobindo Pharma, Subros

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

Oct 26 2012 12:00AMUS GDP Qoq (Annualised) % Change 3Q A 1.30 1.80

Oct 30 2012 12:00AMEuro Zone Euro-Zone Consumer Confidence Value Oct F (25.60) (25.60)

India RBI Repo rate % Oct 30 8.00 8.00

Nov 1 2012 12:00AM China PMI Manufacturing Value Oct 49.80 50.40

Nov 2 2012 12:00AM Germany PMI Manufacturing Value Oct F 45.70 45.70

US Change in Nonfarm payrolls Thousands Oct 114.00 121.00

Nov 6 2012 12:00AM Germany PMI Services Value Oct F 49.30 --

UK Industrial Production (YoY) % Change Sep (1.20) --

Nov 8 2012 12:00AM UK BOE Announces rates % Ratio Nov 8 0.50 0.50

Nov 9 2012 12:00AM China Consumer Price Index (YoY) % Change Oct 1.90 --Nov 10 201212:00AM China Exports YoY% % Change Oct 9.90 --

Nov 12 201212:00AM India Industrial Production YoY % Change Sep 2.70 --

Nov 13 201212:00AM UK CPI (YoY) % Change Oct 2.20 --

Nov 14 201212:00AM India Monthly Wholesale Prices YoY% % Change Oct 7.81 --

Nov 15 201212:00AM Germany GDP nsa (YoY) % Change 3Q P 0.50 --

Nov 16 201212:00AM US Industrial Production % Oct 0.41 --



October 26, 2012

Market Outlook

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Market StrategyOctober 26, 2012


Macro watch

Exhibit 1 : Q uarterly G D P trends

3. 5

5. 7

9 .0

7. 5

8. 5

7. 68. 2

9. 2

8. 0

6. 76. 1

5. 3 5. 5

3. 0

4. 0

5. 0

6. 0

7. 0

8. 0

9. 0

10.0

4 Q F Y 0 9

1 Q F Y 1 0

2 Q F Y 1 0

3 Q F Y 1 0

4 Q F Y 1 0

1 Q F Y 1 1

2 Q F Y 1 1

3 Q F Y 1 1

4 Q F Y 1 1

1 Q F Y 1 2

2 Q F Y 1 2

3 Q F Y 1 2

4 Q F Y 1 2

1 Q F Y 1 3

(%)

Source: CSO, Ang el Research

Exhibit 2 : IIP trends

2. 5

(5.0)

6. 0

2 .7

1. 0

4. 3

(2.8)

(1.3)

2. 5

(1.8)

(0.2)

2. 7

(6.0)

(4.0)

(2.0)

-

2. 0

4. 0

6. 0

8. 0

S e p - 1

1

O c t - 1 1

N o v - 1

1

D e c - 1

1

J a n - 1

2

F e b

- 1 2

M a r - 1 2

A p r - 1 2

M a y - 1

2

J u n - 1

2

J u l - 1 2

A u g - 1

2

(%)

Source: M O SPI, Ang el Research

Exhibit 3 : M onthly WPI inflation trends

9. 9 9. 5

7. 76. 9 7. 4

7. 7 7. 5 7. 6 7. 6 7. 5 7. 6 7. 8

0. 02. 0

4. 0

6. 0

8. 0

10.0

12.0

O c t - 1

1

N o v - 1 1

D e c - 1

1

J a n - 1

2

F e b

- 1 2

M a r - 1 2

A p r - 1 2

M a y - 1

2

J u n - 1

2

J u l - 1 2

A u g - 1

2

S e p - 1

2

(%)

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

S e p - 1

1

O c t - 1 1

N o v - 1

1

D e c - 1

1

J a n - 1

2

F e b

- 1 2

M a r - 1 2

A p r - 1 2

M a y - 1

2

J u n - 1

2

J u l - 1 2

A u g - 1

2

S e p - 1

2

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

(30.0)

(15.0)

0. 0

15.0

30.0

45.0

60.0

A u g - 1

1

S e p - 1

1

O c t - 1 1

N o v - 1

1

D e c - 1

1

J a n - 1

2

F e b

- 1 2

M a r - 1 2

A p r - 1 2

M a y - 1

2

J u n - 1

2

J u l - 1 2

Exp orts yo y growth Im ports yo y growth( %)


Exhibit 6 : Key policy rates

8.00

7.00

4.50

4.00

5.00

6.00

7.00

8.00

9.00

S e p - 1

1

O c t - 1 1

N o v - 1

1

D e c - 1

1

J a n - 1

2

F e b

- 1 2

M a r - 1 2

A p r - 1 2

M a y - 1

2

J u n - 1

2

J u l - 1 2

A u g - 1

2

S e p - 1

2

Repo rate Reverse Repo rate C RR(%)

Source: RBI, Angel Research

7/31/2019 Market Outlook 26-10-12

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 147 - 2,864 1,466 1,686 14.8 14.8 7.0 8.1 21.0 18.2 4.5 3.8 22.6 22.5 2.0 1.7

United Phosphorus Buy 124 170 5,730 8,421 9,263 16.5 16.5 15.0 17.0 8.3 7.3 1.2 1.1 15.6 15.5 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Neutral 220 - 3,754 2,844 3,275 15.4 15.6 15.9 18.8 13.8 11.7 3.6 2.8 28.9 26.9 1.3 1.1

Apollo Tyres Accumulate 90 99 4,531 13,412 15,041 11.3 11.0 12.1 14.2 7.4 6.4 1.3 1.1 19.6 19.2 0.5 0.4 Ashok Leyland Buy 24 30 6,439 14,920 16,850 9.0 9.3 2.2 2.8 11.1 8.8 2.0 1.8 13.3 15.6 0.5 0.4

Automotive Axle# Accumulate 405 430 612 993 1,140 11.6 11.5 36.9 43.0 11.0 9.4 2.2 1.9 21.2 21.3 0.7 0.5Bajaj Auto Neutral 1,797 - 52,011 21,121 23,642 18.4 18.5 108.7 122.6 16.5 14.7 6.9 5.5 46.2 41.6 2.1 1.8Bharat Forge Buy 300 351 6,973 7,004 7,985 16.2 16.4 20.3 25.1 14.7 12.0 2.7 2.3 20.0 20.9 1.2 1.0

Bosch India* Neutral 8,453 - 26,543 8,793 10,294 17.4 18.5 348.3 435.8 24.3 19.4 4.7 3.9 19.4 20.1 2.8 2.4CEAT Buy 113 164 386 4,989 5,634 8.7 8.5 32.7 41.1 3.4 2.7 0.5 0.4 15.8 16.9 0.3 0.2

Exide Industries Accumulate 148 155 12,601 6,229 7,200 14.8 15.8 7.2 9.0 20.7 16.6 3.6 3.1 18.5 19.9 1.6 1.3FAG Bearings* Neutral 1,645 - 2,734 1,505 1,768 17.5 18.0 111.2 132.7 14.8 12.4 3.1 2.5 22.8 22.2 1.7 1.4

Hero Motocorp Accumulate 1,924 1,956 38,414 24,743 27,996 14.8 15.2 118.2 130.4 16.3 14.8 7.0 5.5 48.3 41.9 1.2 1.0JK Tyre Accumulate 107 135 440 7,517 8,329 6.1 6.3 26.2 38.5 4.1 2.8 0.5 0.4 13.4 17.2 0.4 0.3Mahindra and Mahindra Accumulate 846 944 51,958 37,434 42,860 11.6 11.5 50.4 56.3 16.8 15.0 3.5 3.0 22.6 21.5 1.1 0.9

Maruti Neutral 1,314 - 37,970 41,796 49,350 7.6 8.6 66.6 92.6 19.7 14.2 2.3 2.0 12.0 14.8 0.7 0.6Motherson Sumi Neutral 220 - 8,626 24,285 27,317 6.7 7.2 8.1 10.6 27.4 20.8 5.8 4.7 22.9 24.7 0.5 0.5

Subros Buy 30 34 178 1,230 1,378 8.8 8.6 4.5 5.7 6.6 5.2 0.6 0.6 9.8 11.8 0.4 0.3Tata Motors Buy 263 316 70,119 195,096 219,428 12.8 13.0 39.0 44.9 6.8 5.9 1.9 1.5 32.6 28.8 0.4 0.4

TVS Motor Buy 42 49 2,017 7,611 8,443 7.9 7.9 4.7 5.4 9.0 7.8 1.5 1.3 17.9 18.1 0.2 0.2

Capital Goods

ABB* Sell 779 593 16,509 8,760 10,023 6.2 8.7 14.5 24.7 53.9 31.5 5.9 5.1 11.6 17.6 1.8 1.6BGR Energy Neutral 274 - 1,977 3,669 4,561 11.0 11.0 24.7 29.6 11.1 9.3 1.6 1.5 15.3 16.7 1.0 1.0BHEL Neutral 253 - 61,949 47,801 43,757 19.0 18.8 25.3 22.8 10.0 11.1 3.1 2.6 34.3 25.3 1.1 1.2

Blue Star Buy 179 249 1,611 2,763 2,948 3.2 5.6 3.5 9.1 51.8 19.7 3.9 3.4 7.7 18.4 0.7 0.7Crompton Greaves Accumulate 129 141 8,291 12,691 14,126 7.4 8.9 7.0 9.7 18.5 13.3 2.1 1.9 11.9 15.0 0.7 0.6Jyoti Structures Buy 46 54 382 2,622 2,744 10.7 10.5 9.6 12.2 4.9 3.8 0.5 0.5 10.8 12.3 0.4 0.3

KEC International Accumulate 71 78 1,825 6,858 7,431 7.1 7.5 8.3 9.8 8.6 7.3 1.5 1.2 25.1 24.0 0.4 0.4LMW Neutral 1,987 - 2,238 2,369 2,727 11.7 11.7 143.4 166.0 13.9 12.0 2.3 2.1 17.4 18.4 0.5 0.4

Thermax Neutral 564 - 6,719 5,514 5,559 8.9 10.2 26.9 30.3 21.0 18.6 3.6 3.2 18.4 18.2 1.1 1.0


Market Outlook

Stock Watch

October 26, 2012

7/31/2019 Market Outlook 26-10-12

14/20



Cement

ACC Neutral 1,429 - 26,836 11,085 12,415 21.6 21.4 79.4 83.1 18.0 17.2 3.5 3.2 20.1 19.2 2.1 1.8 Ambuja Cements Neutral 202 - 31,169 10,272 11,884 26.4 26.1 11.5 12.9 17.7 15.7 3.9 3.5 20.8 21.1 2.7 2.2

India Cements Neutral 92 - 2,840 4,354 4,929 18.6 18.7 9.8 12.3 9.4 7.5 0.8 0.8 8.6 10.2 1.2 1.0J K Lakshmi Cements Neutral 106 - 1,295 1,964 2,278 19.5 20.4 16.3 17.9 6.5 5.9 0.9 0.8 14.7 14.6 0.9 1.3

Madras Cements Neutral 185 - 4,404 3,608 3,928 27.6 27.0 15.7 18.3 11.8 10.1 1.9 1.6 16.9 17.0 1.9 1.6Shree Cements^ Neutral 3,700 - 12,889 5,701 6,210 29.7 28.1 240.7 260.7 15.4 14.2 3.7 3.0 27.1 23.6 2.0 1.6

UltraTech Cement Neutral 1,883 - 51,608 21,368 24,043 22.5 23.5 103.5 121.4 18.2 15.5 3.4 2.9 20.2 20.1 2.5 2.4Construction

Ashoka Buildcon Buy 227 304 1,195 2,034 2,315 22.4 22.4 27.1 31.7 8.4 7.2 1.0 0.9 13.1 13.4 1.8 2.1

Consolidated Co Neutral 15 - 270 2,262 2,522 6.7 7.5 1.5 2.7 9.8 5.5 0.4 0.4 4.4 7.5 0.4 0.4Hind. Const. Neutral 18 - 1,116 4,239 4,522 9.9 11.2 (2.3) (1.0) (8.2) (19.1) 1.0 1.1 (11.4) (5.6) 1.2 1.2IRB Infra Buy 158 166 5,248 3,964 4,582 42.3 40.2 15.7 16.9 10.0 9.3 1.6 1.4 16.6 15.8 2.7 2.6

ITNL Buy 183 232 3,562 6,840 7,767 26.4 26.1 24.4 30.3 7.5 6.1 1.1 1.0 16.0 16.2 2.7 2.9IVRCL Infra Buy 48 51 1,473 5,510 6,722 8.8 9.0 2.5 4.6 19.0 10.5 0.6 0.6 3.4 5.8 0.7 0.7

Jaiprakash Asso. Neutral 82 - 17,437 15,259 17,502 25.7 24.7 4.0 4.8 20.5 17.2 1.6 1.5 8.5 9.3 2.6 2.3Larsen & Toubro Neutral 1,562 - 95,865 60,474 69,091 12.1 11.5 79.7 85.4 19.6 18.3 3.3 2.9 16.3 15.1 1.9 1.7

Madhucon Proj Buy 38 56 281 2,206 2,502 10.7 10.7 4.6 4.7 8.2 8.2 0.4 0.4 5.2 5.0 0.7 0.7Nagarjuna Const. Reduce 45 45 1,152 5,804 6,513 8.0 8.6 3.0 3.5 14.8 12.8 0.5 0.5 3.2 3.6 0.6 0.7

Patel Engg. Neutral 77 - 539 3,609 3,836 13.1 13.1 14.0 14.6 5.5 5.3 0.3 0.3 6.3 6.1 1.0 1.0Punj Lloyd Neutral 54 - 1,792 11,892 13,116 8.9 8.9 1.7 3.1 31.8 17.5 0.6 0.6 1.9 3.4 0.6 0.5Sadbhav Engg. Buy 143 182 2,155 2,506 3,147 10.3 10.7 7.5 10.4 19.1 13.7 2.4 2.1 13.5 16.0 1.0 0.9

Simplex Infra Buy 208 265 1,031 6,732 7,837 8.1 8.4 23.4 29.4 8.9 7.1 0.8 0.7 9.2 10.6 0.5 0.5

Financials Allahabad Bank Reduce 146 131 7,283 6,944 7,884 3.0 3.1 35.5 37.0 4.1 3.9 0.7 0.6 17.2 15.7 - -

Andhra Bank Reduce 111 97 6,200 4,929 5,633 3.1 3.1 23.7 24.5 4.7 4.5 0.8 0.7 16.6 15.3 - - Axis Bank Accumulate 1,125 1,402 46,627 15,686 18,687 3.1 3.2 116.8 138.0 9.6 8.2 1.8 1.5 20.0 20.2 - -

Bank of Baroda Accumulate 774 864 30,310 15,473 18,142 2.6 2.6 115.3 139.4 6.7 5.6 1.0 0.9 16.2 17.2 - -Bank of India Accumulate 302 340 17,302 12,573 14,971 2.3 2.4 58.2 68.0 5.2 4.4 0.9 0.7 15.9 16.3 - -

Bank of Maharashtra Neutral 49 - 2,860 3,442 3,802 3.1 3.2 8.9 11.4 5.5 4.2 0.7 0.6 13.5 15.5 - -Canara Bank Neutral 438 - 19,406 10,905 12,783 2.1 2.2 74.9 85.1 5.9 5.2 0.9 0.8 15.1 15.3 - -

Central Bank Neutral 77 - 5,701 7,095 8,102 2.5 2.7 15.6 21.0 5.0 3.7 0.8 0.7 12.2 14.7 - -


Market Outlook

Stock Watch

October 26, 2012

7/31/2019 Market Outlook 26-10-12

15/20



Financials

Corporation Bank Accumulate 408 447 6,037 4,886 5,669 2.1 2.2 101.3 101.8 4.0 4.0 0.7 0.6 17.0 15.1 - -Dena Bank Neutral 103 - 3,597 3,147 3,495 2.8 2.9 24.8 24.4 4.1 4.2 0.7 0.6 18.7 15.9 - -

Federal Bank Neutral 438 - 7,486 2,617 2,968 3.3 3.2 45.9 51.7 9.6 8.5 1.2 1.1 13.1 13.3 - -HDFC Neutral 761 - 117,126 7,336 8,802 3.5 3.5 31.5 37.8 24.1 20.1 4.8 4.3 34.8 32.1 - -

HDFC Bank Neutral 630 - 148,721 21,696 26,811 4.4 4.5 28.7 36.0 22.0 17.5 4.2 3.6 20.7 22.0 - -ICICI Bank Buy 1,064 1,245 122,306 22,304 26,855 2.9 3.0 68.6 82.0 15.5 13.0 1.9 1.7 14.2 15.6 - -

IDBI Bank Accumulate 98 112 12,503 7,761 9,484 1.9 2.2 17.1 22.9 5.7 4.3 0.7 0.6 11.9 14.4 - -Indian Bank Neutral 189 - 8,110 6,062 6,818 3.4 3.4 40.5 41.6 4.7 4.5 0.8 0.7 18.1 16.3 - -IOB Accumulate 78 87 6,197 7,343 8,391 2.5 2.5 16.0 21.3 4.9 3.7 0.6 0.5 11.3 13.6 - -

J & K Bank Neutral 921 - 4,465 2,600 2,850 3.6 3.5 192.3 188.0 4.8 4.9 0.9 0.8 21.0 17.7 - -LIC Housing Finance Buy 274 301 13,825 1,867 2,338 2.4 2.4 21.1 28.5 13.0 9.6 2.1 1.8 17.5 20.4 - -

Oriental Bank Neutral 283 - 8,245 6,278 7,125 2.7 2.8 56.7 62.6 5.0 4.5 0.7 0.6 14.1 13.9 - -Punjab Natl.Bank Buy 833 966 28,262 19,934 22,705 3.3 3.3 147.8 166.2 5.6 5.0 1.0 0.8 17.7 17.3 - -

South Ind.Bank Accumulate 23 25 3,018 1,556 1,750 2.8 2.7 3.5 3.9 6.5 5.9 1.1 1.0 19.1 16.9 - -St Bk of India Accumulate 2,228 2,353 149,522 63,806 73,435 3.5 3.6 225.7 258.4 9.9 8.6 1.7 1.4 17.7 17.8 - -Syndicate Bank Neutral 107 - 6,420 6,722 7,719 2.9 3.0 24.3 27.2 4.4 3.9 0.7 0.6 17.0 16.8 - -

UCO Bank Neutral 75 - 5,002 5,411 6,124 2.4 2.5 17.0 16.5 4.4 4.6 0.9 0.8 16.7 14.4 - -Union Bank Accumulate 203 226 11,154 9,924 11,647 2.8 2.9 38.6 46.3 5.2 4.4 0.9 0.7 15.4 16.3 - -

United Bank Buy 62 81 2,220 3,572 4,041 2.8 2.9 17.2 22.1 3.6 2.8 0.5 0.4 14.2 16.2 - - Vijaya Bank Neutral 56 - 2,763 2,490 2,881 2.1 2.2 9.2 11.4 6.1 4.9 0.7 0.7 11.5 13.0 - -

Yes Bank Accumulate 374 453 13,298 3,270 4,240 2.8 3.0 34.5 42.2 10.9 8.9 2.3 1.9 23.5 23.5 - -

FMCG

Asian Paints Neutral 3,888 - 37,289 11,198 13,184 16.3 16.3 121.0 144.8 32.1 26.9 10.8 8.5 37.4 35.3 3.3 2.8Britannia Buy 479 584 5,727 5,835 6,824 5.7 6.0 20.7 25.4 23.2 18.9 9.1 7.0 43.1 41.9 0.9 0.8Colgate Neutral 1,200 - 16,325 3,018 3,429 20.9 22.2 35.7 42.3 33.6 28.4 31.1 23.1 101.0 93.5 5.5 4.8

Dabur India Neutral 124 - 21,647 6,124 7,030 17.0 16.8 4.5 5.2 27.8 24.0 11.5 9.1 43.2 41.5 3.8 3.2GlaxoSmith Con* Neutral 2,926 - 12,305 3,124 3,663 17.1 17.6 104.5 123.8 28.0 23.6 8.7 7.0 34.4 32.8 3.8 3.2

Godrej Consumer Neutral 661 - 22,499 6,097 7,233 18.4 18.6 21.9 26.5 30.2 25.0 6.7 5.5 25.5 25.4 4.1 3.4HUL Neutral 528 - 114,094 25,350 28,974 13.9 13.9 14.3 16.5 37.0 32.0 22.0 17.0 70.9 59.8 4.7 4.0ITC Neutral 263 - 206,778 29,409 34,060 35.7 36.1 9.3 10.9 28.2 24.1 9.4 7.8 35.8 35.3 7.4 6.4


Market Outlook

Stock Watch

October 26, 2012

7/31/2019 Market Outlook 26-10-12

16/20



FMCG

Marico Neutral 201 - 12,965 4,840 5,643 13.1 13.1 6.8 8.5 29.7 23.8 8.2 6.2 31.4 29.7 2.8 2.3Nestle* Neutral 4,343 - 41,870 8,610 10,174 20.9 21.2 114.8 139.8 37.8 31.1 22.8 15.9 71.2 60.3 5.3 4.4

Tata Global Neutral 131 - 8,073 7,207 7,927 9.7 10.0 6.6 7.8 19.8 16.7 2.0 1.9 8.6 9.5 1.3 1.1

IT

HCL Tech^ Accumulate 568 648 39,393 24,214 26,772 19.5 18.1 44.0 48.0 12.9 11.8 3.1 2.6 24.0 22.0 1.7 1.5

Hexaware* Buy 120 140 3,553 1,966 2,161 22.5 21.4 11.6 12.2 10.3 9.9 2.7 2.3 26.8 23.9 1.4 1.2

Infosys Accumulate 2,587 2,573 148,542 39,174 41,580 29.5 30.4 159.2 171.6 16.3 15.1 3.9 3.5 24.1 23.1 2.9 2.6Infotech Enterprises Accumulate 189 202 2,102 1,886 2,032 17.9 17.3 18.7 20.2 10.1 9.4 1.5 1.3 14.9 14.0 0.8 0.7KPIT Cummins Buy 125 142 2,227 2,191 2,364 16.1 16.5 11.3 13.0 11.1 9.6 2.4 1.9 21.8 20.0 1.0 0.8

Mahindra Satyam Neutral 107 - 12,634 7,628 8,062 19.9 18.4 9.7 10.0 11.0 10.7 3.1 2.4 27.7 22.2 1.2 1.1Mindtree Accumulate 667 747 2,725 2,324 2,437 20.0 17.7 73.3 74.7 9.1 8.9 2.2 1.7 24.1 19.7 0.9 0.8Mphasis& Neutral 394 - 8,281 5,700 5,993 18.0 16.9 37.0 37.3 10.6 10.6 1.5 1.3 14.3 12.6 1.0 0.9

NIIT Accumulate 32 36 524 1,034 1,146 9.9 11.0 5.2 6.4 6.1 5.0 0.8 0.7 12.8 14.3 0.3 0.2Persistent Neutral 411 - 1,644 1,261 1,352 26.4 24.7 48.2 54.0 8.5 7.6 1.6 1.4 19.0 17.9 1.2 1.0

TCS Accumulate 1,286 1,410 251,767 61,053 67,313 28.7 29.1 69.7 76.2 18.5 16.9 6.0 4.9 32.6 29.1 4.0 3.6Tech Mahindra Accumulate 938 1,046 11,973 6,603 7,196 18.2 17.1 92.7 99.6 10.1 9.4 2.4 1.9 23.6 20.5 1.9 1.6

Wipro Buy 380 421 93,477 43,800 48,332 19.5 19.3 25.6 28.1 14.9 13.5 2.8 2.4 18.9 17.9 1.6 1.3

Media

D B Corp Buy 198 259 3,631 1,581 1,784 23.3 25.0 11.6 14.4 17.1 13.7 3.3 2.9 21.0 22.3 2.4 2.1

HT Media Accumulate 92 113 2,172 2,111 2,272 15.0 15.2 7.4 8.3 12.6 11.2 1.4 1.2 11.3 11.4 0.8 0.7Jagran Prakashan Accumulate 91 112 2,884 1,488 1,664 22.7 22.8 6.2 7.1 14.7 12.8 3.6 3.2 25.2 26.3 2.4 2.1

PVR Neutral 187 - 485 625 732 17.4 17.1 13.3 15.6 14.0 11.9 1.5 1.4 13.2 13.8 1.3 1.1

Sun TV Network Neutral 328 - 12,916 1,981 2,239 77.0 76.7 18.6 21.3 17.7 15.4 4.4 3.9 27.1 27.5 6.6 5.6Metals & Mining

Bhushan Steel Neutral 473 - 10,043 11,979 14,584 31.6 31.0 49.2 61.4 9.6 7.7 1.3 1.1 14.1 15.2 2.9 2.4Coal India Accumulate 358 385 226,221 69,808 75,550 27.4 27.4 26.0 28.3 13.8 12.7 4.0 3.2 32.5 28.1 2.3 2.0

Electrosteel Castings Buy 19 29 668 1,984 2,074 10.6 11.6 0.8 2.0 23.1 9.5 0.4 0.1 1.7 4.1 0.6 0.5Hind. Zinc Accumulate 133 145 56,070 12,446 13,538 52.3 52.9 15.0 16.4 8.9 8.1 1.7 1.5 21.4 19.7 2.6 2.0Hindalco Neutral 117 - 22,334 84,855 92,446 8.7 9.3 13.2 16.2 8.8 7.2 0.7 0.6 7.8 8.9 0.6 0.6

JSW Steel Neutral 741 - 16,522 38,740 41,459 17.3 17.0 79.9 89.4 9.3 8.3 0.9 0.8 10.4 10.6 0.9 0.8MOIL Accumulate 255 271 4,284 918 993 50.7 50.9 24.5 26.1 10.4 9.8 1.6 1.5 16.0 15.5 2.2 1.9

Monnet Ispat Buy 305 379 1,965 2,511 3,303 23.8 26.0 46.3 57.3 6.6 5.3 0.8 0.7 12.4 13.7 1.7 1.2


Market Outlook

Stock Watch

October 26, 2012

7/31/2019 Market Outlook 26-10-12

17/20



Metals & Mining

Nalco Neutral 51 - 13,260 7,401 7,841 16.7 19.2 3.4 4.1 15.0 12.6 1.1 1.0 7.4 8.4 1.3 1.2NMDC Buy 188 214 74,675 12,934 14,266 79.4 80.1 21.1 23.4 8.9 8.1 2.4 1.9 29.6 26.5 3.8 3.2

SAIL Neutral 89 - 36,803 47,252 60,351 14.2 14.8 9.6 11.7 9.3 7.6 0.8 0.8 9.4 10.6 1.2 1.0Sesa Goa Neutral 176 - 15,279 7,704 8,034 33.6 34.6 42.0 43.1 4.2 4.1 0.9 0.7 22.3 19.2 2.2 2.0

Sterlite Inds Neutral 101 - 33,841 41,680 45,382 24.2 23.2 16.3 16.9 6.2 6.0 0.7 0.6 11.3 10.7 0.8 0.7Tata Steel Buy 396 481 38,460 145,799 150,431 10.3 11.2 48.6 63.3 8.1 6.3 0.8 0.7 10.5 12.4 0.5 0.5

Sarda Buy 131 148 471 1,251 1,321 22.7 23.4 33.0 37.1 4.0 3.5 0.6 0.5 15.1 14.8 0.7 0.7Prakash Industries Buy 56 73 751 2,694 2,906 14.6 16.6 16.4 20.8 3.4 2.7 0.3 0.3 11.4 12.8 0.5 0.4Godawari Power andIspat Buy 121 161 385 2,341 2,425 15.6 17.3 33.3 43.2 3.6 2.8 0.4 0.4 13.2 14.4 0.5 0.5

Oil & Gas

Cairn India Accumulate 333 380 63,647 16,605 17,258 75.4 71.7 57.0 54.9 5.9 6.1 1.1 0.9 20.2 16.3 2.9 2.3

GAIL Neutral 386 - 48,900 50,176 55,815 15.5 15.8 35.4 36.5 10.9 10.6 1.9 1.7 18.9 17.0 0.6 0.5ONGC Accumulate 281 312 240,452 147,139 154,821 33.9 33.7 30.7 32.3 9.2 8.7 1.6 1.4 18.3 17.2 1.3 1.2Reliance Industries Neutral 844 - 276,405 362,700 380,031 7.9 8.0 60.0 63.3 14.1 13.3 1.4 1.2 11.1 10.6 0.7 0.7

Gujarat Gas* Neutral 310 - 3,973 3,228 3,819 11.5 11.3 19.2 22.1 16.2 14.0 4.3 3.9 28.7 29.0 1.1 0.9Indraprastha Gas Neutral 260 - 3,633 3,040 3,135 24.3 26.7 24.8 27.9 10.5 9.3 2.4 2.0 25.5 23.6 1.2 1.0

Petronet LNG Accumulate 161 183 12,064 30,077 33,570 6.6 6.3 15.1 15.3 10.6 10.5 2.7 2.2 28.4 23.1 0.4 0.4Gujarat State PetronetLtd. Neutral 79 - 4,465 1,041 939 91.8 91.9 8.5 7.4 9.4 10.7 1.6 1.4 18.1 14.0 5.1 5.6

Pharmaceuticals

Alembic Pharma Buy 73 91 1,374 1,624 1,855 14.2 15.6 6.6 9.1 11.1 8.0 2.8 2.1 27.9 29.9 1.0 0.8 Aurobindo Pharma Neutral 140 - 4,087 5,243 5,767 14.6 14.6 11.8 12.6 11.9 11.1 1.5 1.3 17.9 16.4 1.4 1.2

Aventis* Neutral 2,267 - 5,221 1,482 1,682 15.5 15.5 95.1 104.4 23.8 21.7 4.2 3.3 18.6 17.0 3.3 2.8Cadila Healthcare Accumulate 845 953 17,295 6,148 7,386 18.6 19.6 36.0 46.1 23.5 18.3 5.5 4.4 25.8 26.8 3.1 2.5

Cipla Accumulate 373 399 29,917 8,031 9,130 23.4 22.4 18.4 20.0 20.3 18.6 3.4 2.9 17.8 16.6 3.4 2.9Dr Reddy's Accumulate 1,627 1,859 27,617 10,696 11,662 20.7 21.0 83.7 92.9 19.4 17.5 4.0 3.4 22.4 20.8 3.0 2.7

Dishman Pharma Neutral 97 - 784 1,280 1,536 17.8 17.8 9.2 11.3 10.6 8.6 0.8 0.7 7.7 8.5 1.3 1.1GSK Pharma* Neutral 2,000 - 16,944 2,651 2,993 31.7 31.2 76.0 82.4 26.3 24.3 7.6 6.8 20.1 26.3 5.6 4.8

Indoco Remedies Buy 71 92 653 685 837 15.2 15.2 7.4 8.9 9.6 8.0 1.5 1.3 16.4 17.0 1.1 0.9Ipca labs Neutral 460 - 5,799 2,850 3,474 20.7 20.7 29.2 36.6 15.8 12.6 3.7 2.9 26.1 26.1 2.2 1.8Lupin Accumulate 585 647 26,159 8,426 10,082 19.7 20.0 26.3 31.3 22.3 18.7 5.2 4.2 26.0 24.7 3.0 2.5

Orchid Chemicals Neutral 115 - 812 1,667 1,835 13.9 13.9 11.4 13.3 10.1 8.7 0.7 0.6 6.6 7.3 0.9 0.8


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7/31/2019 Market Outlook 26-10-12

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Pharmaceuticals

Ranbaxy* Neutral 536 - 22,648 12,046 11,980 18.0 15.8 31.3 29.8 17.1 18.0 5.8 4.7 39.1 28.9 1.9 1.9Sun Pharma Neutral 676 - 69,877 9,752 12,134 41.6 41.6 26.0 28.2 26.0 24.0 4.9 4.2 20.3 18.8 6.7 5.2

Power

CESC Neutral 332 - 4,149 5,218 5,644 24.2 23.8 44.6 47.6 7.5 7.0 0.8 0.7 11.0 10.6 1.6 1.6GIPCL Accumulate 70 77 1,060 1,557 1,573 29.3 28.7 10.8 11.0 6.5 6.4 0.7 0.6 10.8 10.2 1.1 1.0

NTPC Neutral 165 - 135,968 74,111 85,789 22.7 23.1 12.1 13.7 13.6 12.0 1.7 1.5 12.6 13.2 2.5 2.3

Real Estate Anant Raj Neutral 67 - 1,980 657 875 52.0 56.1 8.4 12.7 8.0 5.3 0.5 0.5 6.3 8.9 4.9 3.7

DLF Neutral 234 - 39,695 9,878 12,033 44.7 46.1 9.6 13.4 24.4 17.4 1.5 1.5 6.4 8.7 6.0 5.0HDIL Accumulate 98 115 4,085 2,441 3,344 55.1 48.2 22.7 26.6 4.3 3.7 0.4 0.3 8.8 9.4 3.6 2.7

MLIFE Neutral 378 - 1,543 813 901 26.2 26.6 32.0 37.1 11.8 10.2 1.2 1.1 10.4 11.0 2.4 2.1

Telecom

Bharti Airtel Neutral 265 - 100,711 79,147 86,745 31.1 32.5 9.9 15.1 26.7 17.6 1.9 1.7 7.0 9.7 2.0 1.7

Idea Cellular Neutral 86 - 28,457 22,234 24,161 26.9 27.7 3.3 4.9 26.0 17.4 2.0 1.8 7.7 10.3 1.7 1.5Rcom Neutral 63 - 13,045 20,650 20,935 32.3 33.0 4.2 5.8 14.9 11.0 0.4 0.3 2.3 3.1 2.2 2.1

zOthers

Abbott India Neutral 1,584 - 3,365 1,602 1,833 10.4 11.8 54.7 71.7 29.0 22.1 5.5 4.7 20.0 22.7 1.7 1.5Bajaj Electricals Neutral 199 - 1,980 3,670 4,290 7.6 8.8 15.0 23.0 13.2 8.6 2.4 2.0 18.6 22.4 0.6 0.5

Cera Sanitaryware Accumulate 338 411 427 427 528 15.7 14.6 30.0 34.0 11.3 9.9 2.5 2.0 24.6 22.5 1.2 1.0Cravatex Buy 443 682 114 289 340 5.2 5.9 41.0 57.0 10.8 7.8 2.8 2.1 25.2 26.5 0.5 0.4

CRISIL Neutral 940 - 6,594 982 1,136 34.3 34.3 34.3 40.0 27.4 23.5 12.4 9.9 50.9 46.9 6.4 5.4Finolex Cables Buy 42 61 639 2,334 2,687 6.2 6.5 8.0 10.0 5.2 4.2 0.7 0.6 13.0 14.9 0.2 0.2

Force Motors Accumulate 435 537 567 2,318 2,700 5.0 5.7 45.0 67.0 9.7 6.5 0.5 0.5 5.0 7.0 0.2 0.2Goodyear India Neutral 320 - 738 1,543 1,654 6.5 7.3 24.8 31.1 12.9 10.3 2.1 1.8 17.1 19.0 0.3 0.2Graphite India #N/A 83 1,627

Greenply Industries Accumulate 195 309 471 1,925 2,235 10.6 10.9 29.6 44.1 6.6 4.4 1.1 0.9 16.8 21.0 0.6 0.5Hitachi Neutral 126 - 289 868 977 3.9 6.6 2.7 10.9 45.9 11.6 1.7 1.5 3.7 13.6 0.4 0.4

Honeywell Automation Accumulate 2,712 2,842 2,397 1,745 1,993 4.0 5.3 59.5 90.4 45.6 30.0 3.5 3.0 8.1 11.3 1.2 1.1Styrolution ABS India Buy 630 744 1,107 1,056 1,081 8.1 10.6 34.0 47.0 18.5 13.4 2.6 2.2 14.7 17.5 1.1 1.0

ITD Cementation Neutral 254 - 292 1,451 1,669 12.3 12.4 32.4 41.5 7.8 6.1 0.7 0.6 9.4 10.9 0.6 0.6Jyothy Laboratories Neutral 165 - 2,664 1,248 1,468 9.8 10.4 5.9 7.2 27.9 23.1 4.0 3.7 15.0 16.6 2.6 2.1MCX Neutral 1,300 - 6,628 553 624 65.3 66.3 62.5 72.0 20.8 18.1 5.7 4.9 27.5 27.4 9.9 8.3

MRF Buy 10,203 12,884 4,327 11,804 12,727 10.4 10.5 1,289.9 1,431.3 7.9 7.1 1.5 1.3 21.3 19.4 0.5 0.5


Market Outlook

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October 26, 2012

7/31/2019 Market Outlook 26-10-12

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zOthers

Page Industries Neutral 3,226 - 3,598 887 1,108 18.3 18.6 95.0 120.9 34.0 26.7 17.7 14.4 57.4 59.5 4.2 3.4Relaxo Footwears Accumulate 715 821 858 1,019 1,208 12.3 13.0 51.0 68.4 14.0 10.5 3.7 2.8 30.3 30.2 1.0 0.9

Sintex Industries Accumulate 66 79 1,798 4,751 5,189 16.3 16.6 13.6 15.8 4.8 4.2 0.6 0.6 12.9 13.2 0.8 0.6Siyaram Silk Mills Buy 290 392 272 1,042 1,173 12.4 12.5 66.3 78.5 4.4 3.7 0.9 0.7 21.1 20.8 0.5 0.4

S. Kumars Nationwide Buy 20 24 607 7,134 7,985 19.7 19.4 12.2 14.1 1.7 1.5 0.2 0.2 11.3 11.5 0.6 0.6SpiceJet Buy 38 43 1,821 5,720 6,599 5.3 6.8 3.6 5.4 10.4 7.0 15.1 4.8 - - 0.4 0.3

TAJ GVK Buy 68 108 423 300 319 35.8 36.2 7.9 9.1 8.5 7.4 1.1 1.0 13.9 14.4 1.9 1.6Tata Sponge Iron Buy 309 384 476 750 803 18.6 18.4 65.4 69.1 4.7 4.5 0.7 0.6 16.5 15.3 0.3 0.2TVS Srichakra Accumulate 303 335 232 1,476 1,643 7.0 8.2 32.6 55.9 9.3 5.4 1.5 1.2 16.8 24.8 0.4 0.3

United Spirits Neutral 1,158 - 15,140 10,289 11,421 13.5 14.3 31.0 42.9 37.3 27.0 2.9 2.6 8.1 10.3 2.3 2.1 Vesuvius India Neutral 336 - 682 560 611 16.1 17.0 24.7 28.8 13.6 11.7 2.0 1.8 15.8 16.2 1.2 1.0

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 25, 2012


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Documents

Market Outlook 26-10-12