Market Outlook 090812

7/31/2019 Market Outlook 090812

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Market OutlookAugust 9, 2012

www.angelbroking.com


Dealers DiaryIndian markets are expected to open in the green, tracing positive opening trades

in the SGX Nifty and the major Asian bourses. Asian stocks rose after reports

showed Chinas consumer prices climbed at a slower pace for a fourth month and

Australian employment exceeded estimates in July.

The trading on Wall Street on Wednesday was choppy as traders expressed

uncertainty about the near-term outlook for the markets following the recent

strength. Profit taking contributed to early weakness among stocks, with traders

cash cashing in on the recent gains, which lifted the major averages to three-

month highs. Disappointing comments from Dallas Federal Reserve President

Richard Fisher also weighed on the markets, as he commented that the Fed has

done its job regarding providing the necessary economic stimulus and that it is now

up to the private sector.

Major European bourses ended slightly lower on Wednesday, putting a halt to their

recent streak of gains, as sentiments were impacted by S&Ps downgrade of Greek

credit rating, mixed earnings results across Europe.

Meanwhile, the Indian markets were upbeat in the early trading session on

Wednesday on reports that the Government is mulling divestment in various

companies and the GAAR implementation is delayed, but traders pared long

positions late in the session after the fall in European markets.

Markets Today

The trend deciding level for the day is 17,637 / 5,349 levels. If NIFTY trades above

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

up to 17,691 17,781 / 5,367 5,395 levels. However, if NIFTY trades below

17,637 / 5,349 levels for the first half-an-hour of trade then it may correct up to

17,547 17,493 / 5,320 5,302 levels.

SENSEX 17,493 17,547 17,637 17,691 17,781

NIFTY 5,302 5,320 5,349 5,367 5,395

News Analysis 1QFY2013 Result Reviews- Bharti Airtel, M&M, ABB, Abbott India, HEG,

Goodyear India, TVS Srichakra,

1QFY2013 Result Previews- Ranbaxy, Motherson, Appolo Tyres, ITNL, AlembicPharmaceuticals, NCC

Refer detailed news analysis on the following page

Net Inflows (August 7, 2012)

FII 2,455 1,593 862 2,411 55,692

MFs 441 347 95 (102) (8,028)

FII Derivatives (August 8, 2012)

Index Futures 1,785 1,075 710 15,419

Stock Futures 1,358 1,199 159 24,382

Gainers / Losers

Hindustan Copp 283 13.0 Bharti Airtel 274 (6.6)

MMTC 795 12.2 GVK Power 13 (5.1)

Wockhardt 1,151 6.4 Lanco Infra 13 (4.9)

Neyveli Lignite 87 4.4 Amtek Auto-$ 94 (4.7)

Hexaware Tech 119 4.1 Idea Cellular 76 (4.5)

BSE Sensex (0.0) (1.2) 17,601

Nifty 0.0 1.3 5,338

MID CAP (0.2) (12.1) 6,114

SMALL CAP (0.4) (24.9) 6,596

BSE HC 0.1 6.3 7,316

BSE PSU 0.8 58.6 7,192

BANKEX (0.5) (65.5) 12,076

AUTO 1.2 112.3 9,441

METAL 0.8 83.4 10,445

OIL & GAS 0.2 16.7 8,375

BSE IT 0.4 20.3 5,470

Dow Jones 0.1 7.0 13,176NASDAQ (0.2) (4.6) 3,011

FTSE 0.1 4.7 5,846

Nikkei 0.9 77.9 8,881

Hang Seng (0.0) (7.0) 20,066

Straits Times (0.5) (15.5) 3,052

Shanghai Com 0.2 3.4 2,161

INFY 0.1 0.1 $41.5

WIT 0.5 0.0 $8.1IBN (1.1) (0.4) $35.1

HDB 0.3 0.1 $35.3

Advances 1,245 492

Declines 1,606 989

Unchanged 115 70

BSE 2,437

NSE 11,348


2/20



As per media reports, the government has made key changes to the proposed

legislation for land acquisition, making it more attractive for the industry by easing

some of the stringent conditions. The rural development ministry has proposed to

not implement the legislation with retrospective effect, besides relaxing the

requirements of consent from landowners, and tightening the definition of market

value. Since the ministry has dropped the plan to apply the proposed legislation

retrospectively, the ongoing projects, for which the acquisition is on but land has

not been awarded, will not have to start the process afresh. This has been one of

industry's main demands. The ministry has also rejected the Standing Committee's

recommendation that the government should not be involved in acquiring land for

private companies or public-private partnership projects. The government has

decided to relax the consent requirement for PPP projects and private companies.

Private project developers will now be required to obtain the consent of 80% of the

landholders, instead of 80% of the project-affected families. The proposed change,

if approved by the Cabinet and subsequently the Parliament, will mean that private

developers will have to get fewer people to agree to the acquisition.

Result Reviews

Bharti Airtel (Bharti) reported disappointing performance for 1QFY2013, with net

profit declining for fifth straight quarter due to higher operating costs. The

consolidated revenues grew by 3.3% qoq to `19,350cr. Revenue from Mobile-

India and South Asia revenue grew merely by 1.7% qoq which the company

attributed to two significant changes - Trai guidelines around processing fees

which restricts the sales of combo packs and hike in service tax from 10.3% to

12.36%, effective April 1, 2012. In India, ARPU declined to `185/month as against

`189/month while MOU increased to 433min as against 431min qoq (Idea

reported qoq decline in MOU); both came in slightly lower than forecast of`188/month and 436min, respectively. Telecom revenues in India have been

depressed due to hyper-competition and recent regulatory and tax developments.

Its African operations have posted a net loss at ~`670cr, which also impacted

consolidated numbers of the company. APRU of African operation declined to

US$6.5 from US$6.8 in 4QFY2012.

Mobile - India and Africa - EBITDA was much lower than estimates at 30.3%

(34.0% earlier) and 25.8% (27.8% earlier) due to high network operating

expenses, which has kept margins under pressure. Currently, it is difficult to see

major improvement in Bhartis domestic business anytime soon as significant cut

has been taken by the companies of 3G tariffs and lot of regulatory uncertainties

are prevailing. Bharti has yet to turn the African operations profitable. EBITDA

margin of Africa operations scaling down substantially was a big negative surprise

as the company is continuously maintaining its stance to focus on to improve


3/20



EBITDA margin of Africa business. The company said adverse regulatory and tax

developments had impacted operating profits. Consolidated EBITDA margin of the

company declined by 305bp qoq to 30.2%. PAT came in much lower than

expected at `776cr, down 22.8% qoq. Overall the results of Bharti were subdued

and initial signs of competition seen in the industry and that too amongst

incumbents which makes us cautious. We believe Bharti is relatively better placedin the Indian telecom industry as the company has the leading subscriber as well

as revenue market share. and the target

price is under review.

FY2013E 80,069 32.2 4,679 12.3 8.5 24.5 2.1 6.6 2.1

FY2014E 86,613 33.5 7,445 19.6 12.0 15.4 1.9 5.4 1.8

Mahindra and Mahindra (MM) reported better-than-expected results for

1QFY2013 led by robust growth in its top-line and stable margin performance

sequentially despite lower tractor sales in the product-mix. MMs top-line grew by

an impressive 39.2% yoy to `9,367cr driven by a strong volume growth of 14.5%

yoy (down 0.7% qoq) and robust net average realization growth of 21.9% yoy

(0.8% qoq). MMs automotive volume during the quarter remained insulated from

the demand slowdown in the sector and was boosted by sustained momentum in

the utility vehicle and pick-up segment. The passenger UV and pick-up segment

posted a strong growth of 32% and 27% yoy, respectively. Farm equipmentsegment however, posted a 1% yoy decline in volumes as demand continues to

remain lackluster in the segment.

On the operating front, EBITDA margins contracted by 147bp yoy to 11.8%largely driven by increase in purchase of finished products (up 216% yoy) frommanufacturing subsidiary Mahindra Vehicle Manufacturers Limited (MVML). Asa result, total raw-material as a percentage of sales increased 325bp yoy to75.1%. EBIT margins in the automotive and farm equipment segment declinedby 192bp yoy (10bp qoq) and 31bp yoy (flat qoq) to 8.8% and 15.7%,respectively. Led by strong top-line growth, net profit posted a 20% yoy growth to`726cr.

Going ahead, while the tractor volumes will remain under pressure in FY2013, weexpect automotive volumes to drive the overall growth of the company. Withincrease in capacity of XUV5OO to 5,000 units/month (currently 4,000units/month) and introduction of Rexton and mini Xylo around festival season webelieve that MM will sustain its momentum in the automotive segment. At `724 thestock is trading at 13.6x FY2014E earnings.

FY2013E 35,881 10.0 2,804 47.5 21.3 15.2 3.0 9.6 1.0

FY2014E 40,746 10.0 3,133 53.2 20.5 13.6 2.6 6.7 0.8


4/20



ABB reported slightly better than expected numbers for 2QCY2012. Revenue

increased by 10% yoy to `1,884cr, which was exactly in line with our estimates.

ABB witnessed ~7-18% revenue growth across all the segments. EBITDA grew to

`106cr, (24% yoy, 8.7% qoq) as EBITDA margins expanded to 5.6%, mainly due to

fall in raw material and other expenses. EBITDA came in better than our

expectation by 6.2%. All the segments apart from process automation posted a

profit during the quarter. PAT came in at `52cr (33.3% yoy, 8.4%qoq) higher than

our expectation of `47cr. ABBs order backlog increased by 9.0% yoy. At current

levels the company is trading at 44x and 39x on our CY2012E and CY2013E EPS

estimates even though we build in significant margin recovery, in our estimates.

We maintain sell rating on the stock with a Target price of `498.

CY2012E 8,760 7.6 386.3 18 14.4 43.9 5.9 25.1 1.9

CY2013E 10,023 7.5 440 20.7 14.6 38.6 5.3 22.2 1.7

For 2QCY2012, Abbott India reported a top line growth of 14.9% yoy from

`358cr to `412cr, which is in line with our estimate of `410cr. The EBITDA margin

expanded by 353bp yoy to 10.8% from 7.8% in 2QCY2011 due to a reduction in

overall expenses as a percentage of sales. The company changed its method of

depreciation from written down value method to straight line method in the last

quarter, which led to a decrease in depreciation expenses, thus leading to a 72.6%

increase in the net profit during the quarter. The net profit rose to `30cr from

`17cr in the same quarter previous year.

CY2012E 1662 11.4 148 69.8 24.9 21.6 4.9 15.1 1.7

CY2013E 1899 12.5 192 90.4 26.6 16.6 4.0 11.5 1.2

For 1QFY2013, HEG reported a top-line growth of 37.6% yoy to `385cr from

`279cr in 1QFY2012, while the EBITDA margin expanded by 1103bp to 26.8%

during the quarter due to a sharp decline in raw material cost. However, in spite of

the robust top-line growth and margin expansion, the PAT grew by just 17.5%

from `20cr in 1QFY2012 to `23cr in 1QFY2013 owing to a forex loss of `48cr

during the quarter. The company reported an exceptionally low tax rate of 8.5%

during the quarter.


5/20



FY2013E 1586 17.9 64 16.1 7.5 12.7 0.9 6.4 1.2

FY2014E 1685 18.1 103 25.7 11.6 7.9 0.9 6.0 1.1

For 2QCY2012, Goodyear India reported a better than expected set of numbers.

The top-line came in at `401cr, 15.4% higher than our estimate of `348cr and 3%

higher y-o-y from `389cr in 2QCY2011. The EBITDA margin contracted by 30bp

yoy to 6.2% during the quarter from 6.5% in 2QCY2011 owing to higher

employee expenses. The net profit declined marginally by 2.6% from `14.6cr to

`14.3cr during 2QCY2012. The company has terminated the process of sale of a

piece of land in Ballabgarh. We expect the revenue to post a 4.2% CAGR over

CY2011-13E, however the EBITDA margin is expected to expand by 180bp due to

declining rubber prices; consequently leading to a PAT growth of 18.6% (CAGR)over CY2011-13E.

CY2012E 1543 8.1 75 32.3 21.7 10.2 2.1 3.4 0.3

CY2013E 1646 9.2 91 39.4 22.4 8.4 1.7 2.4 0.2

For 1QFY2013, TVS Srichakra reported a disappointing set of numbers on both,

revenue and margin front. The top-line grew only by 3.7% qoq and 4.0% yoy to

`361cr, ie 6.4% lower than our estimate of `386cr. The company's operating

margin stood at 5.3%, a dip of 212bp qoq and 354bp yoy, mainly on account of

a 265bp increase in the raw material cost as a percentage of net sales.

Depreciation stood at `6.4cr, an increase of 31.5%/14.6% on a qoq/yoy basis.

Subsequently, the profit for the quarter witnessed a substantial dip of 81.3% qoq

and 84.8% yoy to `2cr, ie 82.3% lower than our estimate of `10.4cr. We expect

the operating margin of the company to improve in the coming quarters with

softening of rubber price. which would contribute towards an improvement in the

profitability.

FY2013E 1,476 7.1 25 32.5 16.7 10.6 1.7 6.0 0.4

FY2014E 1,660 8.3 47 61.0 26.8 5.7 1.4 4.5 0.4


6/20



Result Previews

For 2QCY2012, Ranbaxy is expected to post a robust set of numbers, with sales of

2,452cr. On the operating front, the company's OPM is expected to dip by

270bps to 14.7%. The company's net profit for the quarter is expected to come in

at 233cr.

CY2012E 12,046 18.0 1,506 35.7 43.7 14.4 5.4 10.1 1.8

CY2013E 11,980 15.8 1,258 29.8 28.1 17.3 4.4 11.1 1.8

Motherson Sumi Systems (MSS) is scheduled to announce its 1QFY2013 results

today. On a consolidated basis, we expect the company to record revenues of

`6,565cr from `2,272cr in 1QFY2012 mainly on account of consolidation of

Peguform operations. On the operating front, the company is expected to report a

~120bp yoy contraction in margins to 7%. However, net profit is expected to

increase ~141% yoy to `157cr benefitting from consolidation of Peguform

operation.

FY2013E 23,342 7.8 516 13.3 26.2 12.3 2.9 5.7 0.5

FY2014E 26,366 8.2 697 18.0 28.4 9.1 2.3 4.5 0.4

Apollo Tyres (APTY) is slated to announce its 1QFY2013 results today. On a

consolidated basis, we expect the company to report a healthy 12% yoy growth in

revenues to `3,167cr. Top-line growth is expected to be driven by strong 5.2% yoy

growth in net average realization as company will benefit from price increasestaken in FY2012. Volume growth is expected to remain sluggish at 7% yoy led by

weak OEM and replacement demand. EBITDA margin is expected to improve

300bp yoy to ~11.5% led by 15.6% yoy decline in raw-material prices. As a result,

we expect net profit to post a ~84% yoy growth to `142cr. At `80, the stock is

trading at 6x FY2014E earnings

FY2013E 13,699 10.5 610 12.1 19.7 6.6 1.2 4.3 0.5

FY2014E 15,184 10.1 671 13.3 18.4 6.0 1.0 3.9 0.4


7/20



We expect IL&FS Transportation Networks (ITNL) to post a mixed set of numbers

for the quarter, with healthy performance on the revenue front, but a muted show

at the earnings level owing to high interest cost. The companys revenue is

expected to grow by 36.0% yoy to `1,487cr. We expect the company to register a

dip of 600bp yoy on the EBITDAM front to 24.3%. Further, on the back of high

interest cost, which is expected to come at `226cr, we expect ITNLs earnings to

decline by 29.5% yoy to `82cr.

FY2013E 6,660 24.2 482 24.8 16.3 7.0 1.1 11.3 2.7

FY2014E 7,967 23.6 562 28.9 16.5 6.0 0.9 11.6 2.7

For 1QFY2013, Alembic Pharmaceuticals is expected to post net sales and profits

of around 390cr and 33.2cr, registering a y-o-y growth of 13.6% and 20.5%

respectively. The sales growth would be driven by a strong growth in exports

during the period. Along with the top-line growth, an expansion in the OPM by

around 70bps is expected to drive the net profit growth. The OPM for the quarter is

expected to come in at around 15.3%.

FY2013E 1,624 14.2 125 6.6 27.9 9.7 2.1 5.4 0.8

FY2014E 1,855 15.6 171 9.1 29.9 7.1 1.6 4.1 0.6

We expect a subdued performance from Nagarjuna Construction Company (NCC)

in 1QFY2013. On the top-line front, NCC is expected to post a marginal growthof 4.0% to `1,187cr. EBITDA margin is expected to witness a dip of 231bp yoy to

7.9% for the quarter. However, the blow is expected on the earnings front, as we

expect the company to post a decline of 92.1% yoy to `2cr for the quarter. This

would be primarily on account of muted revenue and EBITDAM and burgeoning

interest cost (yoy jump of 66.3%), led by elongated working capital cycle.

FY2013E 5,453 8.1 42 1.6 1.7 23.4 0.4 7.7 0.6

FY2014E 6,169 8.5 50 1.9 2.0 20.0 0.4 8.1 0.7


8/20



Quarterly Bloomberg Brokers Consensus Estimate

Net sales 2,055 1,864 10 2,099 (2)

EBITDA 557 498 12 145 284

EBITDA margin (%) 27.1 26.7 6.9

Net profit (126) (135) (7) (586) (78)

Net sales 48,495 40,798 19 54,657 (11)

EBITDA 2,806(2,568)

(209) 5,844 (52)

EBITDA margin (%) 5.8 (6.3) 10.7

Net profit (3,618) (3,080) 17 4,631 (178)

Net sales 117,100 92,100 27 127,736 (8)

EBITDA (5,221) (2,362) 121 15,070 (135)

EBITDA margin (%) (4.5) (2.6) 11.8

Net profit (7,374) (3,719) 98 12,670 (158)

Net sales 2,900 2,054 41 3,695 (22)

EBITDA 522 115 354 1,015 (49)

EBITDA margin (%) 18.0 5.6 27.5

Net profit 216 246 (12) 1,248 (83)

Net sales 42,707 33,382 28 50,609 (16)

EBITDA 5,518 4,226 31 6,744 (18)

EBITDA margin (%) 12.9 12.7 13.3

Net profit 2,726 1,996 37 6,258 (56)

Net sales 987 829 19 956 3

EBITDA 231 208 11 251 (8)

EBITDA margin (%) 23.4 25.1 26.3

Net profit 105 97 8 55 91


9/20



Net sales 57,166 48,312 18 61,456 (7)

EBITDA (3,520) 2,174 (262) 4,126 (185)

EBITDA margin (%) (6.2) 4.5 6.7

Net profit (4,082) 935 (537) 3,140 (230)

Net profit 3,582 1,584 126 4,050 (12)

Net sales 3,030 2,779 9 3,760 (19)

EBITDA 296 250 18 494 (40)

EBITDA margin (%) 9.8 9.0 13.1

Net profit 180 155 16 304 (41)

Net sales 2,224 1,636 36 2,330 (5)

EBITDA 867 547 59 1,175 (26)

EBITDA margin (%) 39.0 33.4 50.4

Net profit 648 565 15 904 (28)

Net sales 20,419 16,199 26 18,819 9

EBITDA 11,328 9,470 20 9,011 26

EBITDA margin (%) 55.5 58.5 47.9

Net profit 5,435 4,095 33 5,644 (4)

Net sales 5,321 4,712 13 4,578 16

EBITDA 1,667 1,511 10 1,633 2

EBITDA margin (%) 31.3 32.1 35.7

Net profit 200 222 (10) 203 (1)


10/20



Economic and Political News

Govt. may soon ban import of used capital goods Only four states show support for FDI in multi-brand retail SEbi weighs 2% entry load to revieve MFsCorporate News

No pending proposal of SBI to raise funds via FPO: Government CIL to acquire coal mines in South Africa to jack up supplies Finance Ministry rejects IFCI's plan to set off `523-cr loan against duesSource: Economic Times, Business Standard, Business Line, Financial Express, Mint


11/20

Date Company

August 09, 2012IOC, Tata Motors, Adani Enterp., Ranbaxy, HPCL, GMR Infra., Tech Mahindra, Motherson Sumi, GSPL, ITNL, ApolloTyres, Anant Raj, Nagarjuna Const., Alembic Pharma, Hitachi, ITD Cementation

August 10, 2012 St Bk of India, Sun Pharma, Siemens, BPCL, Bharat Forge, Consolidated Co

August 11, 2012 ONGC, Rcom, Reliance Capital, Madhucon Proj, Godawari Ispat

August 12, 2012

August 13, 2012 Coal India, NMDC, Tata Steel, Bosch India, GSK Pharma, Suzlon Energy, India Cements

August 14, 2012Hindalco, Reliance Power, IDFC, Nalco, Essar Oil, Reliance Infra., Unitech, HDIL, Monnet Ispat, Amara Raja Batteries,Orchid Chemicals, Simplex Infra, Electrosteel Castings, Finolex Cables, Cravatex, S. Kumars Nationwide

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

August 09, 2012 US Initial Jobless claims Thousands Aug 4 365.00 370.00

China Industrial Production (YoY) % Change Jul 9.50 9.70

China Consumer Price Index (YoY) % Change Jul 2.20 1.70

India Industrial Production YoY % Change Jun 2.40 0.30

August 10, 2012 China Exports YoY% % Change Jul 11.30 8.00

August 14, 2012 UK CPI (YoY) % Change Jul 2.40 --

IndiaMonthly Wholesale PricesYoY%

% Change Jul 7.25 7.20

US Producer Price Index (mom) % Change Jul 0.10 0.20

Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 2Q A -- --

Germany GDP nsa (YoY) % Change 2Q P 1.70 --August 15, 2012 UK Jobless claims change % Change Jul 6.10 --

US Industrial Production % Jul 0.43 0.50

US Consumer price index (mom) % Change Jul -- 0.20

August 16, 2012 US Housing Starts Thousands Jul 760.00 760.00

US Building permits Thousands Jul 760.00 770.00

Euro Zone Euro-Zone CPI (YoY) % Jul 2.40 --

August 22, 2012 US Existing home sales Millions Jul 4.37 --

August 23, 2012 Germany PMI Services Value Aug A 50.30 --

Germany PMI Manufacturing Value Aug A 43.00 --

Euro Zone Euro-Zone ConsumerConfidence Value Aug A (21.50) --

US New home sales Thousands Jul 350.00 --

August 24, 2012 UK GDP (YoY) % Change 2Q P (0.80) --

August 28, 2012 US Consumer ConfidenceS.A./

1985=100Aug 65.90 --

August 29, 2012 US GDP Qoq (Annualised) % Change 2Q S 1.50 --

August 30, 2012 Germany Unemployment change (000's) Thousands Aug 7.00 --

August 31, 2012 India Qtrly GDP YoY% % Change 2Q 5.30 --



August 09, 2012

Market Outlook


12/20

Ma rket StrategyAugust 9, 2012


Macro wa tch

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

(30.0)

(15.0)

0. 0

15.0

30.0

45.0

60.0

75.0

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

Jun

-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

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

Aug

-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 125 - 2,431 1,466 1,686 14.8 14.8 7.0 8.1 17.9 15.4 3.8 3.2 22.6 22.5 1.7 1.5

United Phosphorus Buy 121 170 5,568 8,421 9,263 16.5 16.5 15.0 17.0 8.1 7.1 1.2 1.0 15.6 15.5 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Accumulate 310 345 2,648 2,715 3,041 15.3 15.3 29.2 32.8 10.6 9.5 2.5 2.0 26.0 23.3 0.9 0.8

Apollo Tyres Buy 80 100 4,017 13,699 15,184 10.5 10.2 12.1 13.3 6.6 6.0 1.2 1.0 19.7 18.4 0.5 0.4

Ashok Leyland Buy 23 30 6,106 14,920 16,850 9.0 9.3 2.2 2.8 10.5 8.4 1.9 1.7 13.3 15.6 0.5 0.4

Automotive Axle Buy 353 430 533 993 1,140 11.6 11.5 36.9 43.0 9.6 8.2 1.9 1.6 21.2 21.3 0.6 0.5Bajaj Auto Neutral 1,675 - 48,472 21,285 23,927 18.2 18.3 108.5 121.3 15.4 13.8 6.4 5.2 46.1 41.3 1.9 1.6

Bharat Forge Buy 311 372 7,228 7,173 7,998 16.3 16.5 22.3 26.6 13.9 11.7 2.7 2.3 21.0 21.0 1.1 0.9

Bosch India Neutral 8,918 - 28,002 9,106 10,255 19.4 19.3 410.2 460.3 21.7 19.4 4.8 4.0 22.1 20.4 2.7 2.3

CEAT Buy 102 164 349 4,989 5,634 8.7 8.5 32.7 41.1 3.1 2.5 0.5 0.4 15.8 16.9 0.3 0.2

Exide Industries Accumulate 131 149 11,122 5,899 6,771 16.0 17.0 7.4 9.1 17.8 14.3 3.2 2.7 19.0 20.2 1.6 1.3

FAG Bearings Neutral 1,535 - 2,551 1,505 1,747 17.7 18.0 111.5 130.0 13.8 11.8 2.9 2.3 22.8 21.7 1.4 1.2

Hero Motocorp Buy 1,966 2,428 39,259 26,097 29,963 15.0 15.3 139.5 151.8 14.1 13.0 6.6 5.1 54.6 44.3 1.2 1.1

JK Tyre Buy 93 135 380 7,517 8,329 6.1 6.3 26.2 38.5 3.5 2.4 0.5 0.4 13.4 17.2 0.3 0.3

Mahindra and Mahindra Accumulate 724 824 44,464 35,881 40,746 10.0 10.0 47.5 53.2 15.2 13.6 3.0 2.6 21.3 20.5 1.0 0.8

Maruti Accumulate 1,140 1,227 32,943 42,887 49,079 5.5 6.6 66.8 87.6 17.1 13.0 2.0 1.7 12.1 14.1 0.6 0.5

Motherson Sumi Buy 163 216 6,406 23,342 26,366 7.8 8.2 13.3 18.0 12.3 9.1 2.9 2.3 26.2 28.4 0.5 0.4

Subros Buy 29 34 174 1,230 1,378 8.8 8.6 4.5 5.7 6.4 5.1 0.6 0.6 9.8 11.8 0.4 0.3

Tata Motors Buy 241 305 64,229 191,303 211,004 13.0 12.9 40.7 43.8 5.9 5.5 2.0 1.7 36.0 33.1 0.4 0.4

TVS Motor Accumulate 39 43 1,834 7,545 8,301 6.2 6.1 4.9 5.4 7.8 7.2 1.4 1.2 18.8 18.2 0.2 0.2

Capital Goods

ABB* Sell 804 498 17,040 8,760 10,023 7.6 7.5 18.2 20.7 44.1 38.8 5.9 5.3 14.4 14.6 1.9 1.7BGR Energy Neutral 280 - 2,023 4,195 4,837 11.0 11.0 30.1 32.4 9.3 8.7 1.6 1.5 18.4 17.6 1.0 1.0

BHEL Neutral 231 - 56,515 47,801 43,757 19.4 19.8 25.7 23.9 9.0 9.7 1.9 1.7 22.7 18.3 1.1 0.9

Blue Star Neutral 195 - 1,749 3,047 3,328 5.4 6.9 9.6 16.2 20.2 12.0 4.0 3.2 20.7 29.7 0.7 0.6

Crompton Greaves Accumulate 118 128 7,544 12,691 14,096 7.0 8.5 6.5 9.1 18.1 12.9 1.9 1.7 11.1 14.2 0.6 0.6

Jyoti Structures Buy 39 67 321 2,622 2,801 10.6 11.0 10.9 13.4 3.6 2.9 0.5 0.4 13.7 14.9 0.3 0.3

KEC International Buy 56 69 1,450 6,858 7,431 7.5 8.3 9.0 11.5 6.3 4.9 1.1 0.9 26.9 27.2 0.3 0.3

LMW Accumulate 1,756 1,992 1,978 2,369 2,727 11.7 11.7 143.4 166.0 12.2 10.6 2.0 1.9 17.4 18.4 0.4 0.2

Thermax Neutral 501 - 5,970 5,514 5,559 8.9 9.6 26.9 28.4 18.7 17.7 3.2 2.9 18.4 17.1 1.0 1.0


August 09, 2012

Market Outlook

Stock Watch


14/20



Cement

ACC Neutral 1,343 - 25,214 11,220 12,896 20.0 20.6 71.1 81.2 18.9 16.5 3.3 3.0 18.1 19.0 2.0 1.6

Ambuja Cements Neutral 193 - 29,690 10,205 11,659 24.6 24.2 10.8 12.0 17.8 16.0 3.7 3.3 19.7 19.8 2.5 2.1

India Cements Neutral 87 - 2,686 4,364 4,791 18.9 19.1 9.2 11.4 9.5 7.7 0.8 0.7 8.0 9.5 0.5 0.5

J K Lakshmi Cements Neutral 97 - 1,183 1,964 2,278 19.5 20.4 16.3 17.9 5.9 5.4 0.9 0.8 14.7 14.6 0.8 1.1

Madras Cements Neutral 171 - 4,076 3,444 3,786 25.5 24.9 14.6 17.1 11.8 10.1 1.7 1.5 15.6 16.0 1.8 1.5

Shree Cements Neutral 3,100 - 10,800 5,519 6,293 24.5 23.7 156.6 225.3 19.8 13.8 4.9 4.2 22.3 26.0 1.7 1.3

UltraTech Cement Neutral 1,639 - 44,911 20,167 22,752 21.7 23.0 90.8 107.8 18.0 15.2 18.0 15.2 - - 1.8 1.7Construction

Ashoka Buildcon Buy 220 273 1,157 2,014 2,293 22.4 22.4 22.6 26.7 9.7 8.2 1.1 0.9 11.4 11.9 2.4 2.7

Consolidated Co Neutral 17 - 317 2,489 2,755 7.0 7.8 3.0 4.0 5.8 4.3 0.5 0.4 8.7 10.8 0.3 0.3

Hind. Const. Neutral 17 - 1,056 4,239 4,522 9.9 11.2 (2.3) (1.0) (7.7) (18.0) 1.0 1.1 (11.4) (5.6) 1.2 1.2

IRB Infra Buy 119 166 3,965 3,964 4,582 42.3 40.2 15.5 16.9 7.7 7.0 1.2 1.0 16.6 15.8 2.6 2.4

ITNL Buy 171 265 3,329 6,619 7,925 23.8 23.3 22.9 27.8 7.5 6.2 1.1 1.0 15.5 16.4 2.2 2.1

IVRCL Infra Buy 45 61 1,206 5,510 6,722 8.8 9.0 2.5 4.6 17.8 9.9 0.6 0.6 3.4 5.8 0.7 0.7

Jaiprakash Asso. Buy 77 91 16,352 15,259 17,502 25.7 24.7 4.2 5.0 18.1 15.4 1.5 1.4 8.5 9.3 2.4 2.1

Larsen & Toubro Accumulate 1,409 1,553 86,338 60,474 69,091 12.1 11.5 79.7 85.4 17.7 16.5 3.0 2.6 16.3 15.1 1.6 1.4

Madhucon Proj Buy 37 56 273 2,206 2,502 10.7 10.7 4.6 4.7 8.0 7.9 0.4 0.4 5.2 5.0 0.7 0.7

Nagarjuna Const. Neutral 39 - 989 5,453 6,169 8.1 8.5 1.6 1.9 23.5 20.0 0.4 0.4 1.8 2.1 0.6 0.7

Patel Engg. Neutral 83 - 582 3,609 3,836 13.1 13.1 14.0 14.6 6.0 5.7 0.4 0.3 6.3 6.1 1.0 1.1

Punj Lloyd Neutral 52 - 1,725 11,592 12,993 8.4 8.4 1.8 3.2 28.9 16.2 0.6 0.5 2.0 3.4 0.6 0.6

Sadbhav Engg. Buy 133 182 1,997 2,789 3,147 10.6 10.7 8.4 10.4 15.7 12.7 2.1 1.9 15.0 15.6 0.9 0.8

Simplex Infra Buy 206 265 1,018 6,732 7,837 8.1 8.4 23.5 29.4 8.7 7.0 0.8 0.7 9.6 11.0 0.5 0.4

FinancialsAllahabad Bank Accumulate 130 147 6,503 7,233 8,579 3.1 3.3 40.5 40.9 3.2 3.2 0.6 0.5 19.4 17.0 - -

Andhra Bank Neutral 100 - 5,571 5,225 6,024 3.3 3.3 22.7 25.4 4.4 3.9 0.7 0.6 16.0 15.8 - -

Axis Bank Buy 1,097 1,373 45,456 15,961 19,583 3.1 3.2 117.3 143.1 9.4 7.7 1.7 1.5 20.1 20.8 - -

Bank of Baroda Buy 658 851 25,752 15,830 19,300 2.6 2.7 118.9 147.1 5.5 4.5 0.9 0.8 16.7 18.0 - -

Bank of India Buy 285 354 16,361 13,159 15,851 2.4 2.5 61.1 71.1 4.7 4.0 0.8 0.7 16.6 17.0 - -

Bank of Maharashtra Neutral 47 - 2,750 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 360 421 15,948 11,334 13,629 2.2 2.3 75.4 85.1 4.8 4.2 0.7 0.6 15.2 15.3 - -

Central Bank Neutral 72 - 5,315 7,181 8,365 2.5 2.7 16.3 21.8 4.4 3.3 0.8 0.7 12.7 15.1 - -


August 09, 2012

Market Outlook

Stock Watch


15/20



Financials

Corporation Bank Accumulate 399 454 5,913 5,067 5,998 2.1 2.3 105.6 111.0 3.8 3.6 0.7 0.6 17.6 16.3 - -

Dena Bank Buy 90 107 3,163 3,177 3,595 2.8 2.8 25.2 25.4 3.6 3.6 0.6 0.6 18.9 16.4 - -

Federal Bank Accumulate 424 459 7,257 2,736 3,165 3.4 3.4 49.3 57.4 8.6 7.4 1.1 1.0 13.9 14.5 - -

HDFC Reduce 723 671 108,727 7,340 8,805 3.5 3.5 31.5 37.8 22.9 19.1 4.6 4.1 34.8 32.2 - -

HDFC Bank Neutral 598 - 140,973 21,936 27,454 4.4 4.4 28.7 36.0 20.9 16.6 4.0 3.4 20.7 22.0 - -

ICICI Bank Buy 958 1,169 110,132 22,356 27,157 2.9 3.0 68.7 82.0 14.0 11.7 1.7 1.5 14.2 15.5 - -

IDBI Bank Buy 87 105 11,065 7,952 9,876 1.9 2.2 18.5 23.6 4.7 3.7 0.6 0.5 12.8 14.7 - -Indian Bank Accumulate 178 197 7,650 6,294 7,191 3.4 3.4 40.6 44.9 4.4 4.0 0.7 0.6 18.1 17.4 - -

IOB Accumulate 73 84 5,818 7,473 8,732 2.5 2.5 16.7 22.6 4.4 3.2 0.5 0.5 11.8 14.4 - -

J & K Bank Neutral 939 - 4,552 2,525 2,858 3.5 3.5 175.8 183.1 5.3 5.1 1.0 0.8 19.3 17.5 - -

LIC Housing Finance Accumulate 253 279 12,788 1,867 2,338 2.4 2.4 21.1 28.5 12.0 8.9 2.0 1.7 17.5 20.4 - -

Oriental Bank Buy 237 278 6,900 6,518 7,458 2.8 2.9 61.3 65.1 3.9 3.6 0.6 0.5 15.2 14.3 - -

Punjab Natl.Bank Buy 743 975 25,203 20,116 23,625 3.3 3.4 152.8 173.9 4.9 4.3 0.9 0.7 18.2 18.0 - -

South Ind.Bank Accumulate 23 27 2,650 1,514 1,717 2.8 2.7 4.0 4.2 5.9 5.6 1.1 1.0 20.5 18.5 - -

St Bk of India Buy 2,066 2,443 138,668 67,783 78,208 3.7 3.6 226.0 264.2 9.1 7.8 1.5 1.3 17.7 18.1 - -

Syndicate Bank Buy 96 119 5,788 6,997 8,134 3.0 3.1 27.3 29.4 3.5 3.3 0.6 0.5 19.0 17.7 - -

UCO Bank Neutral 69 - 4,590 5,642 6,438 2.5 2.5 16.4 17.6 4.2 3.9 0.8 0.7 16.2 15.4 - -

Union Bank Buy 170 238 9,354 10,299 12,227 2.9 3.0 42.1 49.3 4.0 3.5 0.7 0.6 16.7 17.1 - -

United Bank Buy 57 78 2,056 3,599 4,212 2.8 3.0 18.2 22.3 3.1 2.6 0.5 0.4 15.0 16.2 - -

Vijaya Bank Neutral 53 - 2,639 2,579 3,028 2.1 2.3 8.8 11.6 6.0 4.6 0.7 0.6 11.1 13.3 - -

Yes Bank Buy 368 453 13,042 3,255 4,228 2.8 3.0 34.2 42.7 10.8 8.6 2.3 1.9 23.3 23.8 - -

FMCG

Asian Paints Neutral 3,739 - 35,864 11,198 13,184 16.3 16.3 121.0 144.8 30.9 25.8 10.4 8.2 37.4 35.3 3.1 2.6Britannia Buy 453 633 5,408 5,835 6,824 6.3 6.7 20.7 27.5 21.9 16.5 8.5 6.4 42.7 44.3 0.9 0.8

Colgate Neutral 1,186 - 16,133 3,018 3,429 20.9 22.3 34.6 41.0 34.3 29.0 31.6 24.0 99.5 94.1 5.2 4.5

Dabur India Neutral 120 - 20,878 6,124 7,030 17.0 16.8 4.5 5.2 26.8 23.1 11.1 8.8 43.2 41.5 3.4 2.9

GlaxoSmith Con* Neutral 2,801 - 11,780 3,124 3,663 17.1 17.6 103.0 123.3 27.2 22.7 8.4 6.7 34.0 32.9 3.4 2.9

Godrej Consumer Neutral 618 - 21,046 5,973 7,000 18.4 18.6 22.8 27.2 27.1 22.8 7.4 6.0 31.3 38.4 3.7 3.1

HUL Neutral 476 - 102,966 25,350 28,974 13.9 13.9 14.3 16.5 33.4 28.9 19.9 15.3 70.9 59.8 3.9 3.3

ITC Neutral 262 - 204,835 29,513 33,885 35.4 35.8 9.3 10.8 28.2 24.3 9.3 7.8 35.6 35.0 6.6 5.7


August 09, 2012

Market Outlook

Stock Watch


16/20



FMCG

Marico Neutral 186 - 11,966 4,667 5,427 12.8 12.9 6.6 8.1 27.9 22.8 7.5 5.9 30.0 28.8 2.6 2.2

Nestle* Neutral 4,418 - 42,596 8,610 10,174 20.9 21.2 114.8 139.8 38.5 31.6 23.2 16.2 71.2 60.3 5.0 4.1

Tata Global Neutral 131 - 8,073 7,207 7,927 9.7 10.0 6.6 7.9 19.7 16.6 2.0 1.9 8.6 9.5 1.0 0.9

IT

HCL Tech Accumulate 536 585 37,177 24,400 27,049 18.6 17.5 41.1 45.0 13.0 11.9 2.9 2.5 22.7 21.1 1.5 1.3

Hexaware Accumulate 120 132 3,549 1,921 2,178 20.6 20.0 10.4 11.4 11.5 10.5 2.8 2.4 24.7 23.4 1.6 1.3

Infosys Accumulate 2,281 2,530 130,976 39,151 41,743 31.6 31.9 161.9 174.5 14.1 13.1 3.4 2.9 23.8 22.1 2.7 2.5Infotech Enterprises Accumulate 175 187 1,950 1,889 2,065 18.0 17.5 18.0 19.7 9.7 8.9 1.4 1.2 14.5 13.7 0.7 0.6

KPIT Cummins Reduce 131 124 2,338 2,149 2,331 15.6 14.8 10.7 11.2 12.2 11.7 2.6 2.1 20.6 17.8 1.1 0.9

Mahindra Satyam Neutral 87 - 10,291 7,492 8,038 17.0 16.3 8.1 8.3 10.8 10.5 1.5 1.3 14.1 12.6 1.0 0.8

Mindtree Accumulate 630 708 2,568 2,341 2,513 18.6 17.1 66.5 70.8 9.5 8.9 2.1 1.7 22.3 19.3 0.9 0.8

Mphasis Neutral 404 - 8,488 5,704 6,009 18.6 17.7 36.0 37.1 11.2 10.9 1.6 1.4 14.0 12.6 1.0 0.9

NIIT Buy 36 52 587 1,162 1,304 14.8 15.1 7.1 8.8 5.0 4.0 0.8 0.7 16.7 18.4 0.3 0.2

Persistent Accumulate 379 398 1,516 1,193 1,278 25.6 24.3 42.6 44.3 8.9 8.6 1.5 1.3 17.2 15.5 0.9 0.8

TCS Neutral 1,252 - 245,044 61,046 67,507 29.3 29.1 67.3 72.4 18.6 17.3 5.9 4.9 31.9 28.3 3.8 3.4

Tech Mahindra Neutral 761 - 9,709 6,282 6,477 17.5 16.5 82.9 85.0 9.2 9.0 2.0 1.6 21.6 18.4 1.5 1.4

Wipro Buy 350 420 86,027 43,492 48,332 19.4 19.3 25.1 28.0 13.9 12.5 2.6 2.3 18.6 18.0 1.7 1.4

Media

D B Corp Buy 190 236 3,485 1,597 1,785 22.9 24.2 11.1 13.9 17.1 13.7 3.3 2.8 20.2 22.1 2.1 1.8

HT Media Buy 89 113 2,082 2,111 2,263 15.2 15.2 7.3 8.1 12.1 10.9 1.3 1.2 11.2 11.2 0.5 0.4

Jagran Prakashan Buy 92 112 2,897 1,506 1,687 22.5 23.2 6.2 7.0 14.8 13.1 3.5 3.2 25.0 25.7 2.1 1.9

PVR Neutral 183 - 474 625 732 17.4 17.1 13.3 15.6 13.8 11.7 1.5 1.3 13.2 13.8 1.2 1.0

Sun TV Network Neutral 297 - 11,714 2,002 2,296 77.1 76.7 18.9 22.1 15.7 13.5 4.0 3.5 27.7 28.3 5.3 4.5Metals & Mining

Bhushan Steel Neutral 471 - 10,008 11,979 14,584 31.6 31.0 49.2 61.4 9.6 7.7 1.3 1.1 14.1 15.2 2.8 2.4

Coal India Neutral 346 - 218,420 68,841 74,509 25.3 25.3 24.1 26.1 14.4 13.2 3.9 3.2 30.4 26.8 2.3 2.0

Electrosteel Castings Buy 19 22 661 1,984 2,074 11.2 12.6 2.0 2.7 9.4 7.1 0.4 0.1 4.2 5.5 0.5 0.5

Hind. Zinc Buy 118 142 50,028 12,446 13,538 56.1 56.6 15.2 16.5 7.8 7.2 1.6 1.3 21.7 19.8 2.1 1.5

Hindalco Neutral 121 - 23,204 83,212 91,057 9.0 9.9 13.7 18.1 8.9 6.7 0.7 0.6 7.9 9.6 0.5 0.5

JSW Steel Neutral 723 - 16,131 38,740 41,459 17.3 17.0 79.9 89.4 9.1 8.1 0.9 0.8 10.4 10.6 0.9 0.8

MOIL Accumulate 266 296 4,469 1,007 1,091 56.6 56.9 29.4 31.9 9.1 8.3 1.6 1.4 19.0 18.2 2.2 1.8

Monnet Ispat Buy 306 447 1,969 3,115 3,748 22.1 25.1 59.1 66.8 5.2 4.6 0.7 0.6 15.6 15.3 1.4 1.0


August 09, 2012

Market Outlook

Stock Watch


17/20



Metals & Mining

Nalco Neutral 55 - 14,046 8,474 9,024 12.6 16.2 2.6 3.6 21.3 15.2 1.2 1.1 5.6 7.5 1.2 1.2

NMDC Neutral 183 - 72,713 11,959 13,062 78.2 78.6 19.1 20.9 9.6 8.8 2.4 2.0 27.1 24.4 4.0 3.4

SAIL Accumulate 87 93 35,791 47,252 60,351 14.2 14.8 9.6 11.7 9.1 7.4 0.8 0.8 9.4 10.6 1.2 1.0

Sesa Goa Neutral 184 - 15,991 7,704 8,034 33.6 34.6 42.0 43.1 4.4 4.3 0.9 0.8 22.3 19.2 0.3 -

Sterlite Inds Accumulate 106 115 35,539 41,680 45,382 24.2 23.2 16.3 16.9 6.5 6.3 0.7 0.6 11.3 10.7 0.5 0.4

Tata Steel Buy 409 499 39,674 143,088 148,011 10.9 12.1 53.9 66.0 7.6 6.2 0.9 0.8 12.2 13.4 0.6 0.6

Sarda #N/A 131 469Prakash Industries Buy 61 73 814 2,694 2,906 14.6 16.6 17.9 22.6 3.4 2.7 0.4 0.3 11.4 12.8 0.5 0.4

Oil & Gas

Cairn India Buy 326 380 62,207 16,605 17,258 75.4 71.7 57.0 54.9 5.7 5.9 1.1 0.9 20.2 16.3 2.8 2.1

GAIL Neutral 368 - 46,680 50,176 55,815 15.5 15.8 35.4 36.5 10.4 10.1 1.8 1.6 18.9 17.0 0.1 -

ONGC Accumulate 281 321 240,751 156,331 159,043 37.7 36.3 31.3 32.6 9.0 8.6 1.6 1.4 18.7 17.3 1.2 1.1

Reliance Industries Neutral 790 - 258,624 362,700 380,031 7.9 8.0 61.5 64.3 12.9 12.3 1.3 1.2 10.3 9.9 0.7 0.7

Gujarat Gas Neutral 309 - 3,960 2,472 3,267 16.1 11.5 21.2 19.2 14.5 16.1 5.0 4.3 33.4 28.7 1.5 1.1

Indraprastha Gas Neutral 242 - 3,381 3,040 3,135 24.3 26.7 24.8 27.9 9.7 8.7 2.3 1.9 25.5 23.6 1.2 1.0

Petronet LNG Buy 149 176 11,138 22,696 29,145 8.1 6.6 14.1 14.2 10.5 10.5 3.2 2.5 34.1 26.9 0.6 0.4

Pharmaceuticals

Alembic Pharma Buy 64 91 1,214 1,624 1,855 14.2 15.6 6.6 9.1 9.8 7.1 2.4 1.9 27.5 29.2 1.0 0.8

Aurobindo Pharma Buy 111 156 3,221 5,243 5,767 14.6 14.6 11.8 12.6 9.4 8.8 1.0 0.4 11.4 10.9 0.8 0.6

Aventis* Neutral 2,218 - 5,108 1,482 1,682 15.5 15.5 95.0 104.0 23.4 21.3 4.1 3.2 18.6 17.0 3.2 2.8

Cadila Healthcare Accumulate 895 953 18,325 6,196 7,443 18.5 19.5 37.6 47.7 23.8 18.8 5.3 4.3 26.8 27.5 3.0 2.4

Cipla Accumulate 351 399 28,183 8,031 9,130 23.4 22.4 18.4 20.0 19.1 17.6 3.2 2.7 17.8 16.6 3.3 2.9

Dr Reddy's Neutral 1,658 - 28,142 10,696 11,662 20.7 21.0 83.7 92.9 19.8 17.9 4.1 3.5 22.4 21.0 2.8 2.5Dishman Pharma Accumulate 86 92 691 1,280 1,536 17.8 17.8 9.2 11.3 9.3 7.6 0.7 0.6 7.7 8.5 1.2 1.0

GSK Pharma* Neutral 2,085 - 17,661 2,651 2,993 31.7 31.2 76.0 82.4 27.4 25.3 7.9 6.9 30.8 29.0 5.7 4.9

Indoco Remedies Buy 58 92 530 685 837 15.2 15.2 7.4 8.9 7.8 6.5 1.2 1.0 15.9 16.3 0.9 0.8

Ipca labs Buy 401 475 5,052 2,850 3,474 20.7 20.7 29.2 36.6 13.7 10.9 3.2 2.6 26.1 26.1 1.9 1.6

Lupin Accumulate 582 647 26,022 8,426 10,082 19.7 20.0 27.4 32.4 21.3 18.0 5.1 4.1 27.0 25.2 3.0 2.4

Orchid Chemicals Buy 109 178 768 2,117 2,434 17.7 17.7 16.7 22.2 6.5 4.9 0.6 0.5 9.5 11.5 1.0 0.8

Ranbaxy* Neutral 517 - 21,810 12,046 11,980 18.0 15.8 35.7 29.8 14.5 17.3 5.4 4.4 43.1 28.1 1.8 1.8

Sun Pharma Neutral 673 - 69,582 9,272 11,080 38.6 38.0 22.7 22.6 29.7 29.8 5.0 4.4 17.9 15.6 6.1 4.9


August 09, 2012

Market Outlook

Stock Watch


18/20


19/20



zOthers

Relaxo Footwears Buy 532 684 638 1,019 1,220 11.8 12.1 48.3 62.2 11.0 8.6 2.8 2.1 28.9 28.2 0.8 0.7

Sintex Industries Buy 60 79 1,638 4,751 5,189 16.3 16.6 13.6 15.8 4.4 3.8 0.6 0.5 12.9 13.2 0.7 0.6

Siyaram Silk Mills Buy 305 392 285 1,042 1,173 12.4 12.5 66.3 78.5 4.6 3.9 0.9 0.7 21.1 20.8 0.5 0.5

S. Kumars Nationwide Buy 25 45 744 7,279 8,290 21.0 21.0 15.0 17.6 1.7 1.4 0.2 0.2 13.7 13.9 0.7 0.6

SpiceJet Accumulate 35 40 1,690 5,647 6,513 3.5 6.5 1.9 4.9 18.0 7.1 42.2 6.1 - - 0.4 0.4

TAJ GVK Buy 65 108 410 300 319 35.8 36.2 7.9 9.1 8.3 7.2 1.1 1.0 13.9 14.4 1.7 1.4

Tata Sponge Iron Buy 331 424 510 787 837 16.2 17.5 58.5 66.9 5.7 5.0 0.8 0.7 14.9 15.1 0.3 0.2TVS Srichakra Buy 345 462 264 1,612 1,827 9.5 9.8 72.3 92.5 4.8 3.7 1.4 1.1 33.1 32.1 0.4 0.4

United Spirits Neutral 832 - 10,882 10,289 11,421 13.5 14.3 31.0 42.9 26.8 19.4 2.1 1.9 8.1 10.3 1.8 1.6

Vesuvius India Accumulate 360 413 731 628 716 16.4 16.5 29.8 34.4 12.1 10.5 2.1 1.8 18.8 18.6 1.0 0.8

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


August 09, 2012

Market Outlook

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August 09, 2012Market Outlook

Market Outlook 090812

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