Market outlook 110612

Market Outlook June 11, 2012

www.angelbroking.com


Dealer’s Diary

The Indian markets are expected to open in the green tracing positive opening in most of the Asian bourses and the SGX Nifty. Asian stocks rose as Spain asked for a bailout for its banks and China’s exports beat estimates.

Spain asked euro-region governments over the weekend for as much as €100bn ($126bn) to help shore up its banking system. Chinese data showed exports grew last month at more than double the pace, while imports of crude oil rose to a record. The rescue package for Spain could be worth up to €100bn but the contribution will be provided by The European Financial Stability Facility (EFSF) and the European Stability Mechanism (ESM) instead of the International Monetary Fund (IMF).

Meanwhile Indian shares extended gains for the fifth straight session on Friday, shrugging off initial weakness in the wake of weak global cues after major central banks ECB and the Fed stayed put on announcing additional stimulus measures.

Markets Today The trend deciding level for the day is 16,657 / 5,068 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16,829 – 16,940 / 5,097 – 5,114 levels. However, if NIFTY trades below 16,667 / 5,068 levels for the first half-an-hour of trade then it may correct up to 16,547 – 16,374 / 5,052 – 5,023 levels.

Indices S2 S1 PIVOT R1 R2

SENSEX 16,374 16,547 16,657 16,829 16,940

NIFTY 5,023 5,052 5,068 5,097 5,114

News Analysis

L&T bags orders worth `483cr Vedanta Resources acquires 24.5% stake in Raykal Aluminium

Refer detailed news analysis on the following page

Net Inflows (June 08, 2012)

` cr Purch Sales Net MTD YTD

FII 2740 2000 741 (432) 41,506

MFs 285 280 5 820 (5,646)

FII Derivatives (June 08, 2012)

` cr Purch Sales Net Open Interest

Index Futures 1,316 1,479 (163) 8,638

Stock Futures 1,370 1,095 275 22,440

Gainers / Losers

Gainers Losers

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

Sun TV Network 258 9.1 India Cements 73 (4.7)

Jet Air India 364 7.1 Aurobindo Phar 106 (3.2)

HDIL 73 5.9 Godrej Cons 559 (3.0)

IVRCL LTD 47 5.6 Rajesh Exports 129 (2.9)

Indiabulls Fin 233 4.7 Glenmark Pharma 367 (2.2)

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

BSE Sensex 0.4 69.8 16,719

Nifty 0.4 18.7 5,068

MID CAP 0.2 13.0 5,988

SMALL CAP 0.2 12.5 6,326

BSE HC (0.0) (0.6) 6,635

BSE PSU 0.2 10.8 6,922

BANKEX 0.5 58.3 11,514

AUTO 0.1 5.7 9,192

METAL 0.4 38.8 10,308

OIL & GAS 0.5 37.9 7,781

BSE IT (0.8) (42.3) 5,617

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

Dow Jones 0.8 93.2 12,554

NASDAQ 1.0 27.4 2,858

FTSE (0.2) (12.7) 5,435

Nikkei (2.1) (180.5) 8,459

Hang Seng (0.9) (176.0) 18,502

Straits Times (0.8) (21.4) 2,738

Shanghai Com (0.5) (11.7) 2,281

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

INFY (0.6) (0.3) $43.6

WIT (0.5) (0.0) $8.9

IBN 0.2 0.1 $30.2

HDB (1.5) (0.5) $30.2

Advances / Declines BSE NSE

Advances 1,322 662

Declines 1,417 742

Unchanged 118 95

Volumes (` cr)

BSE 1,971

NSE 9,741



L&T bags orders worth `483cr

L&T Shipbuilding has bagged orders worth `483cr to build four specialised commercial vessels. The orders, from Halul Offshore Services Company, Qatar, are for design, construction and commissioning of two platform supply vessels (PSVs) and two anchor handling, towing, supply and support vessels (AHTSSVs). The PSVs will be equipped for firefighting, rescue and standby, offshore supply and oil recovery.

At the CMP of `1,309, the stock is trading at 17.1x FY2014E earnings and 2.4x FY2014E P/BV on a standalone basis. We have used the SOTP methodology to value the company to capture all its business initiatives and investments/stakes in different businesses. Ascribing separate values to its parent business on a P/E basis and investments in subsidiaries on P/E, P/BV and mcap basis, our target price works out to `1,553, which provides 18.6% upside from current levels. We recommend Buy on the stock.

Vedanta Resources acquires 24.5% stake in Raykal Aluminium

Vedanta Resources, the promoters of Sesa Goa and Sterlite Industries have acquired 24.5% stake in Raykal Aluminium for `201cr with an agreement to acquire the remaining 75.5%, subject to fulfillment of certain milestones. Raykal Aluminium has Prospecting License (PL) to inspect bauxite in Sijmali, Kurumaki and Kalahandi districts of Odisha; however, it does not have any operations currently. Raykal Aluminium will be acquired under the non-integrated Vedanta Aluminium (VAL). VAL is currently a subsidiary of Vedanta Resources and it will be transferred to Sesa Sterlite after the completion of the proposed merger of Sesa Goa and Sterlite Industries.

The deal is likely to be positive for Sesa Goa and Sterlite Industries over the long term if VAL manages to get the required Environment and Forest clearances for the allocated bauxite mines; however, it could take several years in our view. In the near-term, VAL is expected to continue to make losses at the PAT level due to low aluminium prices and higher costs of inputs. We maintain our Buy rating on Sterlite Industries with a target price is `123. We recommend Neutral on Sesa Goa at these price levels. Economic and Political News

UN lowers India growth forecast to 6.7% on weak domestic demand DoT to seek legal opinion on spectrum mortgage by telcos Rupee snaps 9-wk losing run, rebounds from tough May

Corporate News

ICICI Bank, Yes Bank ink deal with Exim Bank of Malaysia Bajaj rolls out Pulsar 200 NS in Maharashtra JSPL may scrap $2.1bn Bolivia plan Mahindra Satyam seeks shareholders' nod for merger

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

Global economic events release calendar

Date Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

June 12, 2012 India Industrial Production YoY % Change Mar-12 (3.50) 1.70

UK Industrial Production (YoY) % Change Mar-12 (2.60) (1.00)

June 13, 2012 US Producer Price Index (mom) % Change Apr-12 (0.20) (0.60)

June 14, 2012 US Initial Jobless claims Thousands 02-Jun-12 377.00 375.00

US Consumer price index (mom) % Change Apr-12 -- (0.20)

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

IndiaMonthly Wholesale Prices YoY%

% Change Apr-12 7.23 7.50

June 15, 2012 US Industrial Production % Apr-12 1.09 0.10

June 18, 2012 India RBI Repo rate % - 8.00 --

India RBI Cash Reserve ratio % - 4.75 --

India RBI Reverse Repo rate % - 7.00 --

June 19, 2012 UK CPI (YoY) % Change Apr-12 3.00 --

US Housing Starts Thousands Apr-12 717.00 725.00

US Building permits Thousands Apr-12 723.00 730.00

June 20, 2012 UK Jobless claims change % Change Apr-12 (13.70) --

US FOMC rate decision % Apr-12 0.25 --

June 21, 2012 Germany PMI Manufacturing Value Jun-12 45.20 --

Euro ZoneEuro-Zone Consumer Confidence

Value May-12 (19.30) --

US Existing home sales Millions Apr-12 4.62 4.57

June 23, 2012 Germany PMI Services Value May-12 51.80 --

June 25, 2012 US New home sales Thousands Apr-12 343.00 --

June 26, 2012 US Consumer ConfidenceS.A./

1985=100May-12 64.90 --

June 28, 2012 Germany Unemployment change (000's) Thousands May-12 -- --

US GDP Qoq (Annualised) % Change Mar-12 1.90 --

UK GDP (YoY) % Change Mar-12 (0.10) --

July 01, 2012 China PMI Manufacturing Value May-12 50.40 --

July 02, 2012 India Imports YoY% % Change Apr-12 3.80 --

India Exports YoY% % Change Apr-12 3.20 --

UK PMI Manufacturing Value May-12 45.90 --

July 05, 2012 UK BOE Announces rates % Ratio Jun-12 0.50 0.50

Euro Zone ECB announces interest rates % Jun-12 1.00 --

July 06, 2012 US Change in Nonfarm payrolls Thousands May-12 69.00 --

US Unnemployment rate % May-12 8.20 --

Source: Bloomberg, Angel Research


June 11, 2012

Market Outlook

1 1

Market Strategy

June 11, 2012


Macro watch

Exhibit 1: Quarterly GDP trends

5.9

7.5

9.8

7.4

9.4

8.5

7.6

8.2

9.2

8.0

6.7

6.1

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, Angel Research

Exhibit 2: IIP trends

5.3

6.2

9.5

3.7 3.4

2.5

(5.0)

6.0

2.7

1.1

4.1

(3.5)

(6.0)

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

12.0

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

(%)

Source: MOSPI, Angel Research

Exhibit 3: Monthly WPI inflation trends

9.6 9.5 9.49.8 10.0 9.9

9.5

7.7

6.97.4

6.97.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

(%)

Source: MOSPI, Angel Research

Exhibit 4: Manufacturing and services PMI

48.0

50.0

52.0

54.0

56.0

58.0

60.0

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Mfg. PMI Services PMI

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

Exhibit 5: Exports and imports growth trends

(15)

0

15

30

45

60

75

May-1

1

Jun-1

1

Jul-1

1

Aug-1

1

Sep-1

1

Oct-1

1

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-1

2

Apr-1

2

Exports yoy growth Imports yoy growth

(%)

Source: Bloomberg, Angel Research

Exhibit 6: Key policy rates

8.00

7.00

4.75

4.00

5.00

6.00

7.00

8.00

9.00

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Repo rate Reverse Repo rate CRR (%)

Source: RBI, Angel Research

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 141 - 2,735 1,432 1,647 14.7 14.7 7.0 8.0 20.1 17.6 4.2 3.6 22.8 22.3 1.9 1.6

United Phosphorus Buy 112 183 5,160 8,191 8,764 16.5 16.5 17.1 18.3 6.5 6.1 1.1 0.9 17.5 16.2 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Accumulate 306 345 2,613 2,715 3,041 15.3 15.3 29.2 32.8 10.5 9.3 2.4 2.0 26.0 23.3 0.9 0.8

Apollo Tyres Buy 82 100 4,156 13,699 15,184 10.5 10.2 12.1 13.3 6.8 6.2 1.2 1.1 19.7 18.4 0.5 0.4

Ashok Leyland Buy 27 33 7,064 14,798 16,687 9.6 9.6 2.4 3.0 11.0 8.9 2.2 1.9 14.8 16.5 0.6 0.5

Automotive Axle Accumulate 456 514 689 1,211 1,387 12.1 11.7 50.3 57.1 9.1 8.0 2.3 1.9 27.8 25.7 0.6 0.5

Bajaj Auto Buy 1,529 1,835 44,234 22,118 24,889 19.0 18.6 115.7 126.5 13.2 12.1 5.3 4.2 45.0 38.9 1.6 1.3

Bharat Forge Buy 307 372 7,157 7,173 7,998 16.3 16.5 22.3 26.6 13.8 11.6 2.7 2.2 21.0 21.0 1.1 0.9

Bosch India Accumulate 8,854 9,429 27,800 9,390 10,716 19.5 19.1 420.2 471.4 21.1 18.8 4.9 4.1 23.3 21.8 2.7 2.3

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

Exide Industries Accumulate 129 146 10,995 5,787 6,595 15.5 17.0 7.1 9.0 18.2 14.5 3.2 2.7 18.6 20.3 1.6 1.3

FAG Bearings Accumulate 1,500 1,594 2,493 1,531 1,748 18.8 18.5 118.0 132.8 12.7 11.3 2.8 2.3 24.0 21.9 1.4 1.1

Hero Motocorp Accumulate 2,005 2,221 40,043 26,106 29,296 15.0 15.2 140.3 148.1 14.3 13.5 6.8 5.2 54.8 43.3 1.2 1.0

JK Tyre Buy 78 135 319 7,950 8,904 5.5 6.0 25.1 38.6 3.1 2.0 0.4 0.3 12.1 16.4 0.3 0.3

Mahindra and Mahindra Buy 688 821 42,233 36,010 40,882 10.0 10.0 47.7 53.3 14.4 12.9 2.9 2.5 21.3 20.6 0.9 0.8

Maruti Buy 1,125 1,510 32,489 42,683 48,736 7.1 7.5 86.6 100.6 13.0 11.2 1.9 1.6 15.3 15.5 0.6 0.5

Motherson Sumi Buy 164 216 6,359 23,342 26,366 7.8 8.2 13.3 18.0 12.3 9.1 3.0 2.3 26.2 28.4 0.4 0.4

Subros Neutral 33 - 197 1,225 1,393 8.5 8.2 4.2 5.0 7.9 6.6 0.8 0.8 10.3 11.8 0.4 0.3

Tata Motors Buy 239 299 63,669 189,676 210,905 12.5 12.6 39.8 45.2 6.0 5.3 2.5 2.0 44.3 41.6 0.5 0.4

TVS Motor Buy 33 44 1,558 7,690 8,459 6.1 6.0 5.0 5.5 6.6 5.9 1.2 1.0 19.0 18.6 0.2 0.1

Capital Goods

ABB* Sell 759 498 16,080 8,760 10,023 6.4 6.4 18.2 20.7 41.6 36.6 5.6 5.0 14.4 14.6 1.8 1.6

BGR Energy Neutral 293 - 2,116 4,195 4,837 10.6 10.2 30.1 32.4 9.8 9.1 1.7 1.5 18.4 17.6 1.0 1.0

BHEL Neutral 221 - 54,153 46,344 46,916 16.5 16.5 23.5 24.1 9.4 9.2 1.9 1.6 21.3 18.9 1.0 1.0

Blue Star Neutral 163 - 1,466 3,047 3,328 5.4 6.9 9.6 16.2 17.0 10.0 3.3 2.7 20.7 29.7 0.6 0.5

Crompton Greaves Accumulate 120 133 7,672 12,451 14,265 5.5 6.1 8.0 9.5 15.0 12.6 2.0 1.8 13.9 14.9 0.6 0.5

Jyoti Structures Buy 41 67 337 2,622 2,801 10.6 11.0 10.9 13.4 3.8 3.1 0.5 0.4 12.7 13.9 0.3 0.3

KEC International Buy 52 73 1,328 6,686 7,200 7.7 7.9 10.6 12.2 4.9 4.2 0.9 0.8 25.9 24.0 0.3 0.3

LMW Buy 1,591 1,992 1,793 2,369 2,727 11.7 11.7 143.4 166.0 11.1 9.6 1.9 1.7 17.4 18.4 0.3 0.2

Thermax Reduce 463 426 5,519 5,514 5,559 8.3 8.0 29.7 28.4 15.6 16.3 2.9 2.6 20.2 16.9 0.9 0.8


June 11, 2012

Market Outlook

Stock Watch



Cement

ACC Neutral 1,147 - 21,536 11,018 12,663 19.9 21.2 70.7 81.2 16.2 14.1 2.8 2.6 18.0 19.0 1.7 1.4

Ambuja Cements Neutral 151 - 23,211 10,035 11,504 23.5 23.8 10.1 10.6 14.9 14.3 2.9 2.6 18.5 19.4 1.9 1.6

India Cements Neutral 73 - 2,233 4,423 4,906 18.2 18.8 9.9 12.7 7.4 5.8 0.6 0.6 8.6 10.5 0.8 0.7

J K Lakshmi Cements Buy 65 79 789 1,938 2,246 19.1 20.1 14.6 16.1 4.4 4.0 0.6 0.5 13.4 13.6 0.5 0.9

Madras Cements Neutral 145 - 3,449 3,444 3,786 25.5 24.9 14.6 17.1 10.0 8.5 1.5 1.3 15.6 16.0 1.6 1.4

Shree Cements Neutral 2,511 - 8,749 5,465 6,249 24.3 23.7 151.5 222.1 16.6 11.3 4.0 3.4 21.6 25.8 1.3 1.0

UltraTech Cement Neutral 1,399 - 38,344 20,116 22,655 21.3 22.5 82.1 97.5 17.1 14.4 2.7 2.3 16.8 17.4 1.8 1.7

Construction

Ashoka Buildcon Buy 205 273 1,079 2,014 2,293 22.4 22.4 22.6 26.7 9.1 7.7 1.0 0.9 11.4 11.9 2.4 2.7

Consolidated Co Neutral 14 - 257 2,526 2,792 5.7 6.6 1.8 2.8 7.6 4.9 0.4 0.4 5.5 8.1 0.3 0.3

Hind. Const. Neutral 19 - 1,156 4,239 4,522 11.1 11.8 (1.8) (0.8) (10.6) (24.4) 1.1 1.2 (9.5) (4.7) 1.3 1.2

IRB Infra Buy 119 166 3,963 3,821 4,582 42.3 40.2 15.0 16.9 8.0 7.0 1.2 1.0 16.1 15.8 2.7 2.4

ITNL Buy 181 265 3,523 6,619 7,925 23.8 23.3 22.0 26.7 8.2 6.8 1.2 1.0 14.9 15.9 2.2 2.1

IVRCL Infra Buy 47 61 1,244 5,510 6,722 8.8 9.0 2.5 4.6 18.4 10.2 0.6 0.6 3.4 5.8 0.7 0.7

Jaiprakash Asso. Buy 68 88 14,524 15,259 17,502 25.7 24.7 4.2 5.0 16.1 13.6 1.3 1.2 8.5 9.3 2.3 2.0

Larsen & Toubro Buy 1,309 1,553 80,216 59,559 69,089 12.1 11.5 70.8 76.5 18.5 17.1 2.8 2.4 16.1 15.3 1.5 1.3

Madhucon Proj Buy 37 70 270 2,206 2,502 10.7 10.7 4.6 4.7 7.9 7.8 0.4 0.4 5.2 5.0 0.7 0.7

Nagarjuna Const. Buy 34 41 867 5,453 6,169 8.1 8.5 1.6 1.9 20.6 17.5 0.4 0.4 1.8 2.1 0.6 0.7

Patel Engg. Neutral 92 - 640 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 47 - 1,561 10,592 12,193 8.4 8.4 2.9 4.6 16.2 10.3 0.5 0.5 3.9 3.1 0.6 0.6

Sadbhav Engg. Buy 134 182 2,019 2,789 3,147 10.6 10.7 8.4 10.4 15.9 12.9 2.2 1.9 15.0 15.6 0.9 0.8

Simplex Infra Buy 211 265 1,045 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

Financials

Allahabad Bank Accumulate 139 147 6,950 7,392 8,542 3.1 3.1 38.3 42.1 3.6 3.3 0.6 0.5 18.4 17.6 - -

Andhra Bank Neutral 114 - 6,404 5,151 5,843 3.2 3.1 22.4 25.7 5.1 4.5 0.8 0.7 15.8 16.0 - -

Axis Bank Buy 1,049 1,476 43,435 16,157 19,557 3.2 3.2 116.4 139.1 9.0 7.5 1.7 1.4 20.0 20.3 - -

Bank of Baroda Buy 725 925 28,389 15,993 18,918 2.6 2.6 127.3 149.9 5.7 4.8 1.0 0.8 17.8 18.2 - -

Bank of India Accumulate 353 389 20,263 13,558 15,551 2.5 2.4 61.6 70.8 5.7 5.0 1.0 0.8 16.8 16.9 - -

Bank of Maharashtra Neutral 52 - 3,081 3,580 4,050 3.2 3.2 11.5 13.1 4.5 4.0 0.7 0.6 17.4 17.2 - -

Canara Bank Buy 422 493 18,708 12,061 13,906 2.3 2.3 83.1 92.7 5.1 4.6 0.8 0.7 16.7 16.4 - -

Central Bank Neutral 80 - 5,856 6,838 7,912 2.3 2.4 13.8 20.3 5.8 3.9 0.8 0.7 10.9 14.4 - -


June 11, 2012

Market Outlook

Stock Watch



Financials

Corporation Bank Accumulate 428 468 6,343 5,203 5,880 2.2 2.1 107.5 112.7 4.0 3.8 0.7 0.6 17.9 16.5 - -

Dena Bank Accumulate 98 107 3,422 3,149 3,522 2.8 2.8 23.3 26.1 4.2 3.8 0.7 0.6 17.7 17.0 - -

Federal Bank Neutral 431 - 7,370 2,743 3,131 3.4 3.3 49.7 57.4 8.7 7.5 1.2 1.0 14.1 14.6 - -

HDFC Neutral 655 - 96,861 7,393 8,844 3.5 3.4 31.7 37.9 20.7 17.3 4.1 3.7 34.7 31.9 - -

HDFC Bank Accumulate 538 567 126,624 21,831 27,477 4.3 4.3 28.3 35.5 19.0 15.2 3.7 3.1 20.8 22.1 - -

ICICI Bank Buy 829 1,174 95,284 22,209 26,512 2.8 2.8 67.9 81.1 12.2 10.2 1.5 1.4 14.7 16.0 - -

IDBI Bank Buy 91 113 11,608 8,004 9,589 1.9 2.0 19.9 23.9 4.6 3.8 0.6 0.5 13.8 14.9 - -

Indian Bank Accumulate 170 190 7,315 6,312 7,119 3.4 3.3 41.1 43.7 4.1 3.9 0.7 0.6 18.2 16.9 - -

IOB Accumulate 86 92 6,874 7,354 8,283 2.5 2.4 16.3 21.7 5.3 4.0 0.6 0.5 11.5 13.9 - -

J & K Bank Neutral 925 - 4,483 2,535 2,861 3.5 3.4 176.3 184.4 5.3 5.0 0.9 0.8 19.3 17.6 - -

LIC Housing Finance Buy 246 286 12,405 2,108 2,607 2.6 2.6 24.5 30.6 10.1 8.0 1.9 1.6 20.1 21.4 - -

Oriental Bank Accumulate 236 262 6,887 6,431 7,315 2.7 2.6 54.4 63.8 4.3 3.7 0.6 0.5 13.6 14.3 - -

Punjab Natl.Bank Buy 783 1,041 26,548 19,893 23,653 3.1 3.2 153.4 175.2 5.1 4.5 0.9 0.8 18.3 18.1 - -

South Ind.Bank Neutral 24 - 2,701 1,440 1,635 2.7 2.5 3.8 4.1 6.4 5.8 1.2 1.1 19.9 18.6 - -

St Bk of India Accumulate 2,180 2,469 146,291 68,311 79,649 3.6 3.6 230.4 273.4 9.5 8.0 1.5 1.3 18.2 18.8 - -

Syndicate Bank Buy 97 126 5,833 7,133 8,255 3.0 3.0 25.9 30.0 3.7 3.2 0.6 0.5 16.9 17.1 - -

UCO Bank Neutral 77 - 5,108 5,623 6,380 2.4 2.4 16.9 17.9 4.6 4.3 0.9 0.8 16.5 15.4 - -

Union Bank Buy 212 261 11,694 10,215 11,854 2.9 2.8 42.7 50.3 5.0 4.2 0.8 0.7 17.0 17.5 - -

United Bank Buy 65 78 2,352 3,551 4,128 2.7 2.8 18.8 22.6 3.5 2.9 0.5 0.5 15.5 16.5 - -

Vijaya Bank Neutral 58 - 2,872 2,668 3,001 2.2 2.2 10.6 12.2 5.5 4.8 0.8 0.7 13.3 13.8 - -

Yes Bank Buy 345 450 12,190 3,209 4,144 2.7 2.8 33.9 41.5 10.2 8.3 2.1 1.8 23.1 23.3 - -

FMCG

Asian Paints Neutral 3,830 - 36,733 11,423 13,309 16.3 16.3 125.3 148.4 30.6 25.8 10.4 8.1 38.0 35.4 3.1 2.7

Britannia Buy 520 633 6,210 5,835 6,824 6.3 6.7 20.7 27.5 25.1 18.9 9.8 7.3 42.7 44.3 1.0 0.9

Colgate Neutral 1,145 - 15,571 3,007 3,417 21.1 22.1 38.2 43.8 30.0 26.2 35.6 28.0 130.2 119.9 5.0 4.4

Dabur India Neutral 104 - 18,074 5,878 6,799 16.8 17.0 4.2 4.9 25.0 21.1 9.1 7.4 39.3 42.0 3.1 2.7

GlaxoSmith Con* Neutral 2,711 - 11,402 3,124 3,663 17.1 11.6 103.0 123.3 26.3 22.0 8.1 6.5 34.0 32.9 3.3 2.8

Godrej Consumer Neutral 560 - 19,057 5,973 7,000 18.4 18.6 22.8 27.2 24.5 20.6 6.7 5.4 31.3 38.4 3.4 2.8

HUL Neutral 428 - 92,588 25,350 29,309 14.3 14.4 14.1 16.4 30.3 26.1 22.7 17.7 82.7 76.2 3.5 3.0

ITC Accumulate 240 252 187,408 29,638 34,159 35.4 35.8 9.3 10.9 25.7 22.0 8.3 6.8 35.3 33.8 6.0 5.2


June 11, 2012

Market Outlook

Stock Watch



FMCG

Marico Neutral 171 - 11,037 4,667 5,427 12.8 12.9 6.6 8.1 25.8 21.1 6.9 5.4 30.0 28.8 2.4 2.0

Nestle* Neutral 4,533 - 43,709 8,731 10,539 21.0 21.4 119.3 147.9 38.0 30.7 23.3 15.9 73.0 61.6 5.0 4.1

Tata Global Buy 112 136 6,929 7,011 7,711 9.7 10.0 6.3 7.5 17.9 15.0 1.7 1.7 9.5 10.9 0.9 0.8

IT

HCL Tech Accumulate 496 560 34,367 22,792 25,743 17.4 17.4 37.8 43.0 13.1 11.5 2.9 2.4 22.3 21.3 1.5 1.3

Hexaware Neutral 127 - 3,753 1,821 2,105 19.0 18.6 9.8 10.7 12.9 11.8 3.0 2.6 23.7 22.5 1.8 1.5

Infosys Buy 2,419 2,792 138,918 37,615 42,491 31.1 30.6 158.5 174.5 15.3 13.9 3.4 2.9 22.5 20.8 3.0 2.5

Infotech Enterprises Accumulate 165 177 1,833 1,758 1,972 17.0 16.6 16.8 18.6 9.8 8.9 1.3 1.2 13.6 13.2 0.7 0.5

KPIT Cummins Neutral 121 - 2,149 2,028 2,239 15.0 14.8 9.0 11.4 13.4 10.6 2.4 2.0 19.3 18.7 1.0 0.9

Mahindra Satyam Accumulate 77 86 9,026 7,097 7,812 16.2 16.0 7.5 8.0 10.2 9.6 1.3 1.2 13.2 12.3 0.9 0.7

Mindtree Neutral 616 - 2,503 2,172 2,450 16.1 15.5 53.9 58.5 11.4 10.5 2.1 1.8 18.9 17.0 1.0 0.8

Mphasis Accumulate 355 373 7,452 5,608 5,964 17.7 17.3 35.5 36.8 10.0 9.6 1.4 1.2 13.9 12.6 0.9 0.7

NIIT Buy 42 52 690 1,162 1,304 14.8 15.1 7.1 8.8 5.9 4.8 1.0 0.9 16.7 18.4 0.4 0.3

Persistent Neutral 351 - 1,406 1,109 1,224 23.3 22.4 37.2 40.1 9.5 8.8 1.5 1.3 15.4 14.5 0.9 0.8

TCS Neutral 1,231 - 240,963 57,189 66,329 29.3 28.7 63.2 70.9 19.5 17.4 6.0 4.8 30.5 27.7 4.0 3.3

Tech Mahindra Accumulate 676 725 8,615 5,880 6,314 15.6 15.2 75.9 82.2 8.9 8.2 1.8 1.5 20.1 18.1 1.4 1.2

Wipro Accumulate 403 430 99,217 41,918 46,879 19.4 19.9 25.1 28.7 16.1 14.1 3.0 2.6 18.6 18.3 2.0 1.7

Media

D B Corp Buy 189 269 3,457 1,652 1,863 25.7 26.3 13.5 16.1 14.0 11.7 3.1 2.6 24.1 24.4 2.0 1.7

HT Media Buy 97 148 2,277 2,255 2,555 16.3 16.7 9.0 10.6 10.8 9.1 1.4 1.2 13.4 13.8 0.6 0.5

Jagran Prakashan Buy 87 137 2,748 1,499 1,642 27.4 28.8 7.6 9.1 11.4 9.6 3.8 3.4 34.6 37.7 1.8 1.6

PVR Neutral 158 - 411 625 732 17.4 16.9 12.4 15.8 12.7 10.0 2.0 2.2 8.5 9.9 0.8 0.7

Sun TV Network Neutral 258 - 10,154 2,135 2,458 75.2 74.4 20.9 24.0 12.4 10.7 2.9 2.4 26.0 25.1 3.7 3.0

Metals & Mining

Bhushan Steel Neutral 452 - 9,595 9,232 13,557 30.8 31.1 48.0 58.6 9.4 7.7 1.2 1.0 14.5 7.5 3.2 2.2

Coal India Accumulate 327 353 206,292 68,841 74,509 25.3 25.3 24.1 26.1 13.6 12.5 3.7 3.1 30.4 26.8 2.1 1.8

Electrosteel Castings Buy 17 27 602 1,984 2,074 10.6 12.0 2.7 3.3 6.5 5.3 0.3 0.1 5.2 6.2 0.4 0.4

Hind. Zinc Buy 118 139 49,986 13,043 14,223 51.8 52.8 14.8 16.6 8.0 7.1 1.6 1.3 21.2 19.9 2.1 1.5

Hindalco Neutral 120 - 23,032 84,652 88,766 9.6 10.5 17.0 18.9 7.1 6.4 0.7 0.6 9.7 9.8 0.5 0.5

JSW Steel Neutral 641 - 14,296 39,592 44,910 18.0 17.7 74.7 88.9 8.6 7.2 0.8 0.7 10.7 11.6 0.7 0.7

MOIL Accumulate 273 296 4,587 1,007 1,091 56.6 56.9 29.4 31.9 9.3 8.6 1.7 1.5 19.0 18.2 2.3 1.9

Monnet Ispat Buy 340 593 2,190 3,115 3,748 22.1 25.1 59.1 66.8 5.8 5.1 0.8 0.7 15.6 15.3 1.4 1.1


June 11, 2012

Market Outlook

Stock Watch



Metals & Mining

Nalco Reduce 60 54 15,335 8,474 9,024 12.6 16.2 2.6 3.6 23.3 16.6 1.3 1.2 5.6 7.5 1.4 1.3

NMDC Accumulate 168 187 66,627 11,959 13,062 78.2 78.6 19.1 20.9 8.8 8.0 2.2 1.8 27.1 24.4 3.5 3.0

SAIL Neutral 95 - 39,240 50,914 60,785 14.6 15.1 9.4 10.5 10.1 9.0 0.9 0.8 9.2 9.6 1.2 1.1

Sesa Goa Accumulate 188 206 16,335 9,067 9,316 35.7 35.5 44.5 44.3 4.2 4.2 0.9 0.8 23.5 19.5 0.4 0.1

Sterlite Inds Buy 101 123 33,808 45,805 49,029 21.2 23.5 16.5 19.1 6.1 5.3 0.7 0.6 11.5 12.0 0.4 0.2

Tata Steel Buy 411 499 39,868 143,088 148,011 10.9 12.1 53.9 66.0 7.6 6.2 0.9 0.8 12.2 13.4 0.6 0.6

Oil & Gas

Cairn India Accumulate 324 372 61,824 15,513 16,074 74.0 69.7 51.1 48.6 6.3 6.7 1.1 0.9 18.3 14.8 2.8 2.1

GAIL Buy 332 389 42,075 50,472 55,502 15.3 15.6 35.4 37.0 9.4 9.0 1.7 1.5 19.0 17.2 0.1 -

ONGC Buy 259 321 221,801 156,331 159,043 37.7 36.3 31.3 32.6 8.3 8.0 1.5 1.3 18.7 17.3 1.1 1.0

Reliance Industries Buy 729 897 238,846 316,404 319,119 11.2 12.0 63.5 68.7 11.5 10.6 1.2 1.1 11.7 11.4 0.7 0.7

Pharmaceuticals

Alembic Pharma Buy 49 91 924 1,624 1,855 14.2 15.6 6.6 9.1 7.4 5.4 1.8 1.4 27.5 29.2 0.8 0.7

Aurobindo Pharma Buy 106 156 3,099 5,243 5,767 14.6 14.6 13.8 14.7 7.7 7.2 0.9 0.4 11.4 10.9 0.7 0.6

Aventis* Neutral 2,100 - 4,836 1,482 1,682 15.5 15.5 95.0 104.0 22.1 20.2 3.9 3.1 18.6 17.0 3.1 2.6

Cadila Healthcare Buy 734 953 15,031 6,196 7,443 18.5 19.5 43.3 50.8 17.0 14.5 4.4 3.5 25.4 24.8 2.4 1.9

Cipla Buy 309 379 24,826 7,687 8,804 21.4 21.4 16.5 18.9 18.7 16.4 2.9 2.6 16.7 16.8 3.2 2.7

Dr Reddy's Neutral 1,622 - 27,483 10,696 11,662 20.7 21.0 83.7 92.9 19.4 17.5 4.0 3.4 22.4 21.0 2.7 2.4

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

GSK Pharma* Neutral 1,985 - 16,809 2,651 2,993 31.7 31.2 76.0 82.4 26.1 24.1 7.5 6.5 30.8 29.0 5.4 4.7

Indoco Remedies Buy 57 82 527 685 837 15.2 15.2 7.4 8.9 7.7 6.4 1.1 1.0 15.9 16.3 0.9 0.8

Ipca labs Buy 339 435 4,266 2,850 3,474 20.3 20.3 26.6 32.7 12.8 10.4 3.3 2.6 28.2 27.9 1.7 1.4

Lupin Buy 546 647 24,400 8,426 10,082 19.7 20.0 29.7 32.4 18.4 16.9 4.8 3.8 27.0 25.2 2.8 2.2

Orchid Chemicals Buy 121 178 854 2,117 2,434 17.7 17.7 16.7 22.2 7.3 5.5 0.7 0.6 9.5 11.5 1.1 0.9

Ranbaxy* Neutral 490 - 20,667 12,046 11,980 18.0 15.8 35.7 29.8 13.7 16.4 5.1 4.2 43.1 28.1 1.7 1.7

Sun Pharma Neutral 584 - 60,126 9,272 11,080 38.6 38.0 22.7 22.6 25.7 25.8 4.3 3.8 17.9 15.6 5.0 3.9

Power

CESC Buy 280 342 3,492 5,084 5,512 24.2 23.8 45.2 48.5 6.2 5.8 0.7 0.6 11.2 10.9 1.1 1.2

GIPCL Buy 61 77 920 1,557 1,573 28.8 28.5 10.4 10.9 5.9 5.6 0.6 0.6 10.4 10.2 1.1 0.9

NTPC Neutral 156 - 128,423 74,766 86,549 23.1 23.4 12.4 14.1 12.5 11.1 1.6 1.4 13.0 13.5 2.4 2.2

Real Estate

Anant Raj Buy 47 78 1,397 657 875 52.0 56.1 8.4 12.7 5.6 3.7 0.3 0.3 6.3 8.9 3.4 2.6

DLF Neutral 196 - 33,356 9,878 12,033 44.7 46.1 9.6 13.4 20.5 14.6 1.3 1.2 6.4 8.7 5.9 4.8


June 11, 2012

Market Outlook

Stock Watch



Real Estate

HDIL Buy 73 115 3,050 2,441 3,344 53.0 46.7 21.4 25.4 3.4 2.9 0.3 0.3 8.4 9.1 3.1 2.3

Telecom

Bharti Airtel Neutral 304 - 115,388 80,961 86,705 33.5 34.0 17.2 20.8 17.7 14.6 2.0 1.8 11.5 12.3 2.1 1.8

Idea Cellular Neutral 79 - 26,129 22,558 25,326 26.4 27.5 3.2 4.7 24.5 16.7 1.9 1.7 7.5 10.0 1.6 1.4

Rcom Neutral 66 - 13,674 22,288 23,871 32.1 32.7 4.4 6.0 15.0 11.1 0.4 0.4 2.4 3.2 2.0 1.7

zOthers

Bajaj Electrical Buy 186 245 1,853 3,670 4,384 8.5 8.5 18.3 22.3 10.1 8.3 2.2 1.9 23.9 24.3 0.5 0.4

CRISIL Neutral 1,074 - 7,539 982 1,136 34.3 34.3 34.3 40.0 31.3 26.9 14.2 11.3 50.9 46.9 7.3 6.1

Finolex Cables Buy 38 61 580 2,334 2,687 8.8 9.3 7.6 10.2 5.0 3.7 0.6 0.6 13.7 16.1 0.2 0.1

Graphite India Buy 89 124 1,729 2,158 2,406 18.1 18.9 12.4 14.0 7.1 6.3 1.0 0.9 14.0 14.3 0.9 0.8

Greenply Buy 210 309 507 1,925 2,235 10.6 10.9 29.6 44.1 7.1 4.8 1.2 0.9 16.8 21.0 0.5 0.4

Page Industries Neutral 2,991 - 3,336 887 1,108 18.3 18.6 95.0 120.9 31.5 24.7 16.4 13.3 57.4 59.5 3.8 3.0

Sintex Buy 56 79 1,521 4,751 5,189 16.3 16.6 13.6 15.8 4.1 3.5 0.5 0.5 12.9 13.2 0.7 0.6

Siyaram Silk Mills Buy 251 392 235 1,042 1,173 12.4 12.5 66.3 78.5 3.8 3.2 0.7 0.6 21.1 20.8 0.4 0.4

SpiceJet Buy 33 40 1,579 5,647 6,513 3.5 6.5 1.9 4.9 16.8 6.7 39.4 5.7 - - 0.4 0.4

Taj GVK Buy 62 108 386 300 319 35.8 36.2 7.9 9.1 7.8 6.8 1.0 0.9 13.9 14.4 1.6 1.4

Goodyear Accumulate 332 374 766 1,511 1,692 7.9 9.0 31.5 41.3 10.5 8.1 2.1 1.7 21.2 23.5 0.3 0.2

HEG Buy 203 242 812 1,746 1,946 16.5 17.7 22.5 32.9 9.0 6.2 0.9 0.8 10.4 14.2 1.1 1.0

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 Neutral 2,575 - 2,276 1,542 1,739 9.4 10.0 116.1 140.8 22.2 18.3 3.1 2.7 15.5 15.9

Ineos ABS Neutral 758 - 1,334 900 1,011 10.2 11.5 35.6 45.7 21.3 16.6 3.1 2.7 15.4 17.2

ITD Cementation Accumulate 224 236 258 1,535 1,842 11.1 11.1 27.3 38.3 8.2 5.9 0.6 0.6 7.9 10.2 0.6 0.6

MRF Buy 10,721 13,106 4,547 12,390 14,400 10.4 11.3 1,334.6 1,638.2 8.0 6.5 1.6 1.3 16.5 17.4 0.6 0.5

Relaxo Accumulate 443 478 532 1,019 1,208 11.0 10.8 44.9 53.1 9.9 8.3 2.4 1.9 27.2 25.0 0.7 0.6

Tata Sponge Buy 286 420 441 757 875 19.0 19.1 63.5 72.9 4.5 3.9 0.7 0.6 16.1 16.1 0.2 -

TVS Srichakra Buy 320 462 245 1,612 1,827 9.5 9.8 72.3 92.5 4.4 3.5 1.3 1.0 33.1 32.1 0.4 0.3

Vesuvius India Accumulate 376 413 763 628 716 16.4 16.5 29.8 34.4 12.6 10.9 2.2 1.9 18.8 18.6 1.1 0.9

Abbott India Accumulate 1,465 1,628 3,114 1,661 1,918 9.7 12.0 60.7 90.4 24.2 16.2 5.0 4.0 22.0 27.3 1.7 1.4

Cera Sanitaryware Ltd Buy 250 288 317 385 444 17.2 17.4 28.9 32.0 8.7 7.8 1.8 1.5 23.4 21.1 1.0 0.9

Jyothy Laboratories Buy 216 268 1,743 1,315 1,568 8.6 11.1 6.4 10.9 33.9 19.9 2.9 2.7 8.4 13.9 1.6 1.4

Force Motors Buy 458 680 596 2,346 2,753 6.7 7.0 50.9 61.9 9.0 7.4 0.5 0.5 5.5 6.3 0.2 0.2

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on June 08, 2012


June 11, 2012

Market Outlook

Stock Watch


June 11, 2012

Market Outlook

Economy & Finance

Market outlook 110612