Market Outlook 13-09-2013

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Market OutlookSeptember 13, 2013

Dealers Diary

Indian markets are expected to open flat with a negative bias tracking negative

start to SGX Nifty and most of the Asian indices, as US and Russia hold talks on

Syria and investors await the outcome of Federal Reserves meeting next week.

The US markets showed a lack of direction throughout the trading day on Thursdaybefore ending the session on a modestly lower note. Uncertainty about the

outcome of next week's Federal Reserve meeting along with profit booking likely

contributed to the lower close on the Wall Street. On the economic front, the Labor

Department's report on weekly jobless claims showed that claims unexpectedly

dropped to a seven year low but the data was distorted by technical issues. As

per the report, initial jobless claims dropped to 292,000 in the week ended

September 7, against expectations of 330,000. However, the Labor Department

noted that the drop in jobless claims came as two states failed to report all of their

claims while upgrading their computer systems.

Back home, the domestic markets fell sharply on Thursday following profit booking

by the investors after a sharp 10% rally over the past five sessions. Meanwhile,

Indias industrial production data for July 2013 surprised positively, contributed to

a large extent by increase in capital goods component and excluding that, IIP

growth would have stood at 0.8%.

Markets Today

The trend deciding level for the day is 19,837/ 5,866 levels. If NIFTY trades above

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

up to 19,997 20,212 / 5,917 5,982 levels. However, if NIFTY trades below

19,837 / 5,866 levels for the first half-an-hour of trade then it may correct up to

19,622 19,461 / 5,800 5,750 levels.

Indices S2 S1 PIVOT R1 R2SENSEX 19,461 19,622 19,837 19,997 20,212

NIFTY 5,750 5,800 5,866 5,917 5,982

News Analysis

IIP surprises positively, rises by 2.6% Oil Ministry moves Cabinet to deny RIL higher gas price Infosys BPO bags contract from AkzoNobel Tech Mahindra signs contract with Volvo Car Corporation

Refer detailed news analysis on the following page

Net Inflows (September 11, 2013)

` cr Purch Sales Net MTD YTDFII 3,328 2,781 548 5,515 64,712

MFs 552 538 14 (823) (13,819)

FII Derivatives (September 12, 2013)

` cr Purch Sales Net Open InterestIndex Futures 1,895 2,239 (344) 13,781

Stock Futures 2,158 2,468 (310) 28,462

Gainers / Losers

Gainers LosersCompany Price (`) chg (%) Company Price (`) chg (%)Financial Tech. 217 18.3 Jaiprakash Asso 38 (11.6)

TV18 Broadcast 20 12.5 Siemens 471 (8.2)

Tata Comm. 179 6.2 Yes Bank 281 (7.3)

MCX 482 4.9 JP Infratech 18 (6.7)

Pipavav Defence 47 4.8 Future Retail 75 (6.3)

Domestic Indices Chg (%) (Pts) (Close)BSE Sensex (1.1) (216) 19,782

Nifty (1.1) (62) 5,851

MID CAP (0.0) (2) 5,597

SMALL CAP 0.3 14 5,477

BSE HC (0.1) (12) 9,360

BSE PSU (1.6) (88) 5,472

BANKEX (1.9) (219) 11,574

AUTO (1.8) (199) 10,850

METAL (2.5) (219) 8,414

OIL & GAS (1.7) (146) 8,533

BSE IT (1.2) (96) 7,915

Global Indices Chg (%) (Pts) (Close)Dow Jones (0.2) (26) 15,301NASDAQ (0.2) (9) 3,716

FTSE 0.0 1 6,589

Nikkei (0.3) (38) 14,387

Hang Sang 0.1 17 22,954

Straits Times 0.4 13 3,121

Shanghai Com 0.6 14 2,256

Indian ADR Chg (%) (Pts) (Close)INFY (1.1) (0.5) $48.3

WIT (3.0) (0.3) $9.9IBN (2.7) (0.8) $30.3

HDB (1.5) (0.5) $31.7

Advances / Declines BSE NSEAdvances 1,161 639

Declines 1,199 693

Unchanged 143 96

Volumes (` cr)BSE 2,818

NSE 12,999

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IIP surprises positively, rises by 2.6%

As per Quick Estimates on the Index of Industrial Production (IIP), industrial growth

in July 2013 came in at 2.6% in contrast with market expectations of 0.5%

de-growth. Retail CPI inflation slowed to 9.52 percent in August from 9.64 in

July 2013 coming in better than expected. The corresponding provisional inflationrates for rural and urban areas for August 2013 are 8.93% and 10.32%

respectively.

The industrial production data for July 2013 is a positive surprise after two

consecutive months of contraction. The capital goods component has contributed

to a large extent to this increase in production and excluding that, IIP growth would

stand at 0.8%. We believe that external demand has improved and coupled with

the INR depreciation it has translated in a positive push for the manufacturing

sector and exports. This is reflected in double-digit growth of exports for two

straight months in July and August.

Performance on Sector-wise classification

In terms of sector-wise classification, electricity production increased by 5.2%

compared to a flat performance in June 2013. The Mining sector continued to

contract for the tenth consecutive month and reported a 2.3% decline in July 2013

as against a 4.3% contraction in the previous month. The Manufacturing sector

reported a growth of 3.0% as compared to 1.7% de-growth in the previous month

and flat performance in July 2012.

Performance in the Use-based category

As per the use-based classification, Capital Goods index posted a 15.6% growth

after three straight months of contraction. It contributed 1.9% to the headline

2.6% growth. Consumer durables continued to decline but consumer goods

production continued to be supported by non-durables sector.

Oil Ministry moves Cabinet to deny RIL higher gas price

Oil Ministry aims at moving the Cabinet in order to deny Reliance Industries (RIL)

higher gas price until it meets the previously targeted gas output from its KG D6

block. The output from the block has fallen to 15mmscmd currently compared to

its target of producing 60mmscmd. The government has decided to nearly double

the prices of all the domestically produced gas effective April 2014. Moreover, the

government had agreed to consider the change in gas price from April 2014,

irrespective of gas production for RIL's block. Hence, we maintain our estimatesand our Accumulate rating on the stock with a target price of `953.

Infosys BPO bags contract from AkzoNobel

Infosys BPO yesterday announced that the company has signed a contract with

AkzoNobel to transform their finance and accounting (F&A) processes to

accelerate operational efficiencies, improve controls and drive optimization.

Infosys BPO will play a key role in accelerating AkzoNobel's finance transformation

program and streamline accompanying operations for AkzoNobel's decorative

business in over 30 countries across Europe, the Middle East and Africa. Infosys

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BPO will consolidate the F&A processes at AkzoNobel to accelerate operational

efficiencies, improve controls and drive optimization. Infosys BPO will deliver the

services out of its global delivery centers in Poland and India, in multiple European

languages, including Dutch, English, French, German, Italian, Spanish and

Swedish. We maintain our Neutral rating on Infosys stock.

Tech Mahindra signs contract with Volvo Car Corporation

Tech Mahindra has signed an agreement with Volvo Car Corporation (Volvo

Cars). The IT company will provide the automobile company with a service to

maintain and develop a range of applications that can increase efficiency and

reduce costs. Beginning this month, Tech Mahindra will take care of Volvo Cars

application maintenance and development across multiple domains, including

manufacturing, product development, marketing, sales and reporting. Wemaintain our Buy rating on Tech Mahindra with a target price of `1,531.

Economic and Political News

FIPB on fast track; to consider 6 more pharma proposals Diesel, LPG hike decision in a few weeks: oil secretary Downturn was temporary, growth picking up says Arvind MayaramCorporate News

Power Min to soon float Cabinet note for Power Grid FPO Housing prices in Delhi fall by up to 12% in H1 of 2013: CBRE

Cabinet note on NHPC share buy back soon: Power Min NTPC to soon get coal linkage for its Gadarwara and Barethi projects: Scindia Jaypee plans to cut debt by`15,000cr this fiscal India Infoline Finance to raise up to `1,050cr via NCDs Godrej Properties raises `700cr via rights issue Shriram Transport Finance to raise up to `500cr via NCDs AMW ties up with IndusInd Bank for vehicle finance

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

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Global economic events release calendar

Date Time Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

September 13, 2013 6:00PM US Producer Price Index (mom) % Change Aug -- 0.20

September 16, 2013 12:00PM India Monthly Wholesale Prices YoY% % Change Aug 5.79 5.70

2:30PM Euro Zone Euro-Zone CPI (YoY) % Aug F 1.30 1.30

6:45PM US Industrial Production % Aug 0.04 0.40

September 17, 2013 2:00PM UK CPI (YoY) % Change Aug 2.80 2.70

6:00PM US Consumer price index (mom) % Change Aug 0.20 0.20

September 18, 2013 6:00PM US Housing Starts Thousands Aug 896.00 918.00

6:00PM US Building permits Thousands Aug 954.00 950.00

11:30PM US FOMC rate decision % Sep 18 0.25 0.25

September 19, 2013 7:30PM US Existing home sales Million Aug 5.39 5.26

September 20, 2013 11:00AM India RBI Repo rate % Sep 20 7.25 --

11:00AM India RBI Cash Reserve ratio % Sep 20 4.00 --

11:00AM India RBI Reverse Repo rate % Sep 20 6.25 --

7:30PM Euro Zone Euro-Zone Consumer Confidence Value Sep A (15.60) --

September 23, 2013 1:00PM Germany PMI Services Value Sep A 52.80 --

1:00PM Germany PMI Manufacturing Value Sep A 51.80 --

September 24, 2013 7:30PM US Consumer Confidence S.A./ 1985=100 Sep 81.50 --

September 25, 2013 7:30PM US New home sales Thousands Aug 394.00 --

September 26, 2013 2:00PM UK GDP (YoY) % Change 2Q F 1.50 --

6:00PM US GDP Qoq (Annualised) % Change 2Q T 2.50 --

October 1, 2013 6:30AM China PMI Manufacturing Value Sep 51.00 --

2:00PM UK PMI Manufacturing Value Sep 57.20 --

1:25PM Germany Unemployment change (000's) Thousands Sep 7.00 --

October 2, 2013 5:15PM Euro Zone ECB announces interest rates % Oct 2 0.50 --October 4, 2013 6:00PM US Change in Nonfarm payrolls Thousands Sep 169.00 --

6:00PM US Unnemployment rate % Sep 7.30 --

October 9, 2013 2:00PM UK Industrial Production (YoY) % Change Aug (1.60) --

October 10, 2013 4:29PM India Imports YoY% % Change Sep (0.68) --

4:29PM India Exports YoY% % Change Sep 13.00 --

4:30PM UK BOE Announces rates % Ratio Oct 10 0.50 0.50

Source: Bloomberg, Angel Research

September 13, 2013

Market Outlook

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Macro watch

Exhibit 1:Quarterly GDP trends

Source: CSO, Angel Research

Exhibit 2:IIP trends

Source: MOSPI, Angel Research

Exhibit 3:Monthly WPI inflation trends

Source: MOSPI, Angel Research

Exhibit 4:Manufacturing and services PMI

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

Exhibit 5:Exports and imports growth trends

Source: Bloomberg, Angel Research

Exhibit 6:Key policy rates

Source: RBI, Angel Research

7.7

11.4

9.5

8.69.2

9.9

7.5

6.56.0

5.1 5.4 5.24.7 4.8 4.4

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

(%)

(0.1)

2.0

(0.7)

8.4

(1.0) (0.6)

2.5

0.6

3.5

1.9

(2.8)(2.2)

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

Ju

l-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

(%)

8.17.3 7.2 7.3 7.3 7.3

5.7

4.8 4.6 4.9

5.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

Ju

l-13

(%)

46.0

48.0

50.0

52.0

54.0

56.0

58.0

60.0

Jun-1

2

Ju

l-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

Ju

l-13

Aug-1

3

Mfg. PMI Services PMI

(9.0)

(6.0)

(3.0)

0.0

3.0

6.09.0

12.0

15.0

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

Ju

l-13

Aug-1

3

Exports yoy growth Imports yoy growth(%)

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Sep-1

2

Oct-12

Nov-1

2

Nov-1

2

Dec-1

2

Jan-1

3

Jan-1

3

Fe

b-1

3

Mar-

13

Mar-

13

Apr-

13

May-1

3

May-1

3

Jun-1

3

Ju

l-13

Ju

l-13

Aug-1

3

Sep-1

3

Repo rate Reverse Repo rate CRR (%)

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Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)

( ) Price ( ) ( cr ) FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E

Agri / Agri Chemical

Rallis Neutral 152 - 2,961 1,674 1,923 13.7 13.7 6.8 7.6 22.4 20.0 4.2 3.7 20.0 19.6 1.9 1.7

United Phosphorus Buy 134 225 5,909 10,091 11,302 16.5 16.5 19.2 22.5 7.0 5.9 1.1 1.0 17.0 17.2 0.8 0.6

Auto & Auto Ancillary

Amara Raja Batteries Neutral 303 - 5,172 3,474 3,952 15.5 15.5 19.0 21.0 15.9 14.4 3.9 3.2 27.2 24.2 1.5 1.3

Apollo Tyres Neutral 64 - 3,228 13,409 15,106 11.8 11.6 13.1 15.4 4.9 4.2 0.8 0.7 17.9 17.8 0.4 0.3

Ashok Leyland Buy 14 18 3,621 12,945 15,049 6.3 8.2 0.2 1.5 78.2 9.1 1.2 1.1 1.1 9.1 0.4 0.3

Automotive Axle# Neutral 200 - 303 700 890 8.7 10.7 11.1 25.8 18.0 7.8 1.1 1.0 6.2 13.9 0.5 0.4

Bajaj Auto Accumulate 1,978 2,115 57,244 22,042 25,399 19.3 19.3 121.1 141.0 16.3 14.0 5.8 4.6 39.4 36.6 2.2 1.8

Bharat Forge Neutral 258 - 6,004 5,942 6,417 15.2 15.5 15.6 19.7 16.5 13.1 2.4 2.1 15.4 17.3 1.2 1.0

Bosch India* Accumulate 8,284 9,096 26,009 9,301 10,895 16.8 18.0 339.9 423.1 24.4 19.6 4.1 3.5 16.6 17.6 2.5 2.1

CEAT Buy 111 170 400 5,159 5,628 9.3 9.0 43.5 48.6 2.6 2.3 0.4 0.4 18.4 17.5 0.2 0.2

Exide Industries Accumulate 127 148 10,833 6,899 7,873 14.7 14.7 7.9 9.0 16.1 14.1 2.8 2.4 18.3 18.0 1.3 1.1

FAG Bearings* Neutral 1,160 - 1,928 1,336 1,572 13.8 16.0 75.6 102.4 15.3 11.3 1.9 1.7 13.4 15.8 1.2 1.0

Hero Motocorp Neutral 2,011 - 40,152 25,543 28,228 14.5 14.5 110.5 148.1 18.2 13.6 6.9 5.5 40.8 44.9 1.4 1.3

JK Tyre Buy 89 152 365 7,376 8,262 10.0 9.8 56.0 60.9 1.6 1.5 0.3 0.3 22.7 20.2 0.4 0.4

Mahindra and Mahindra Buy 813 999 50,084 42,003 47,250 12.0 12.2 58.1 66.1 14.0 12.3 2.8 2.4 21.5 20.8 0.9 0.8

Maruti Buy 1,320 1,571 39,861 45,877 52,733 11.2 11.2 93.0 104.7 14.2 12.6 1.9 1.7 14.2 14.0 0.7 0.6

Motherson Sumi Buy 216 242 12,669 28,442 31,914 8.4 8.7 13.0 16.1 16.6 13.4 4.4 3.4 29.4 28.6 0.6 0.5

Subros Buy 20 23 117 1,230 1,398 10.5 10.5 2.3 3.8 8.4 5.1 0.4 0.4 4.8 7.6 0.3 0.3

Tata Motors Neutral 333 - 89,672 215,043 240,077 13.5 13.7 35.1 39.4 9.5 8.4 2.2 1.8 26.2 23.3 0.5 0.4

TVS Motor Buy 31 36 1,451 7,659 8,528 6.0 6.2 4.9 5.9 6.3 5.1 1.1 0.9 17.8 19.0 0.1 0.1

Capital Goods

ABB* Sell 550 442 11,662 8,037 9,087 5.8 6.9 12.2 17.0 45.1 32.4 4.3 4.2 9.8 13.1 1.5 1.3

BGR Energy Neutral 122 - 881 3,541 4,041 11.8 10.7 21.1 22.9 5.8 5.3 0.7 0.6 21.8 19.5 0.5 0.5

BHEL Neutral 135 - 32,994 42,227 38,453 16.0 14.4 18.8 15.0 7.2 9.0 1.5 1.3 21.7 15.4 0.6 0.8

Blue Star Buy 150 208 1,349 2,941 3,099 3.4 4.2 6.0 9.3 25.1 16.1 3.1 2.7 12.9 18.0 0.6 0.5

Crompton Greaves Accumulate 88 103 5,655 13,418 14,654 5.8 6.7 5.8 7.8 15.2 11.3 1.5 1.4 10.1 12.5 0.5 0.5

Jyoti Structures Neutral 21 - 170 3,312 3,555 9.0 9.0 4.5 6.5 4.6 3.2 0.2 0.2 5.6 7.7 0.3 0.3

KEC International Buy 26 36 674 7,709 8,399 6.2 6.9 5.1 8.1 5.1 3.2 0.5 0.5 16.6 21.5 0.3 0.2

Thermax Neutral 578 - 6,890 5,832 6,397 9.1 9.6 28.8 32.9 20.1 17.6 3.3 2.9 17.2 17.3 1.1 1.0

Cement

ACC Buy 1,026 1,225 19,270 11,581 13,009 17.6 19.3 63.9 81.5 16.1 12.6 2.4 2.2 15.6 18.2 1.4 1.2


Market Outlook

Stock Watch

September 13, 2013

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Cement

Ambuja Cements Neutral 181 - 27,896 9,975 11,409 22.4 23.1 9.4 11.1 19.3 16.2 2.9 2.7 15.7 17.2 2.4 2.0

India Cements Neutral 49 - 1,505 4,796 5,357 16.4 16.1 7.3 9.5 6.7 5.2 0.4 0.4 6.4 8.0 0.7 0.6

J K Lakshmi Cement Buy 64 79 756 2,235 2,684 19.4 21.4 15.0 18.4 4.3 3.5 0.5 0.5 13.2 14.3 0.4 0.9

Madras Cements Neutral 167 - 3,968 4,010 4,524 23.5 23.4 14.9 18.3 11.2 9.1 1.5 1.3 14.0 15.2 1.6 1.4

Shree Cement^ Neutral 3,865 - 13,466 6,316 7,162 26.5 25.7 294.6 340.5 13.1 11.4 2.9 2.3 24.0 22.7 1.7 1.4

UltraTech Cement Neutral 1,751 - 48,025 22,021 25,274 22.0 21.6 99.5 113.3 17.6 15.5 2.8 2.4 16.7 16.6 2.2 2.0

Construction

Ashoka Buildcon Buy 49 60 774 1,912 2,131 21.0 21.5 5.0 5.5 9.8 9.0 0.7 0.7 8.8 7.6 1.7 1.8

Consolidated Co Neutral 6 - 107 1,715 1,824 2.4 6.2 (2.9) (0.4) (2.0) (16.1) 0.2 0.2 0.5 0.5

IRB Infra Buy 74 106 2,458 3,805 4,248 45.1 45.3 15.0 15.8 4.9 4.7 0.7 0.6 14.5 13.9 2.9 3.1

ITNL Buy 118 156 2,290 7,423 7,970 27.5 28.7 30.3 32.0 3.9 3.7 0.6 0.5 15.0 14.0 2.4 2.5

IVRCL Infra Neutral 12 - 380 5,673 5,892 7.8 7.6 (1.7) (2.0) (7.5) (6.3) 0.2 0.2 0.6 0.6

Jaiprakash Asso. Neutral 38 - 8,510 12,946 14,897 24.7 25.6 1.2 2.7 31.2 14.3 0.6 0.6 2.0 4.3 2.6 2.4

Larsen & Toubro Buy 814 1,002 75,288 68,946 78,040 10.0 10.0 49.0 55.2 16.6 14.7 2.4 2.1 14.9 15.3 1.2 1.1

Nagarjuna Const. Buy 20 30 500 6,167 6,945 8.0 8.2 2.7 3.6 7.3 5.4 0.2 0.2 2.7 3.6 0.4 0.4

Punj Lloyd Neutral 25 - 829 12,726 14,226 8.2 8.2 0.9 1.0 29.1 24.4 0.3 0.3 1.0 1.2 0.6 0.6

Sadbhav Engg. Buy 57 99 859 2,462 2,731 10.6 10.6 5.3 6.0 10.8 9.5 1.0 0.9 9.2 9.6 0.6 0.6

Simplex Infra Neutral 65 - 323 6,237 6,908 9.1 9.0 9.9 13.9 6.6 4.7 0.2 0.2 3.7 5.0 0.5 0.5

Unity Infra Neutral 20 - 145 2,146 2,339 12.9 13.0 9.3 9.6 2.1 2.0 0.2 0.2 8.0 7.7 0.7 0.7

Financials

Allahabad Bank Neutral 77 - 3,865 6,843 7,528 2.5 2.5 26.0 30.1 3.0 2.6 0.5 0.4 11.8 12.4 - -

Andhra Bank Neutral 53 - 2,991 4,868 5,390 2.4 2.5 12.3 16.6 4.4 3.2 0.4 0.4 7.9 10.0 - -

Axis Bank Buy 1,021 1,190 47,875 19,280 22,886 3.3 3.3 130.7 157.1 7.8 6.5 1.3 1.1 17.3 18.1 - -

Bank of Baroda Neutral 521 - 21,935 15,896 17,947 2.2 2.3 95.4 124.4 5.5 4.2 0.7 0.6 12.0 14.2 - -

Bank of India Neutral 166 - 9,871 14,482 16,069 2.3 2.2 55.0 62.2 3.0 2.7 0.4 0.4 13.7 13.9 - -

Bank of Maharashtra Neutral 38 - 2,540 4,529 4,780 3.0 2.8 12.3 11.8 3.1 3.3 0.5 0.4 16.5 14.1 - -

Canara Bank Neutral 225 - 9,950 11,454 12,378 2.0 2.0 52.4 60.5 4.3 3.7 0.5 0.4 9.8 10.4 - -

Central Bank Neutral 58 - 6,079 8,196 9,202 2.4 2.4 6.1 15.9 9.6 3.7 0.7 0.6 5.2 12.8 - -

Corporation Bank Neutral 270 - 4,135 5,641 6,083 2.0 2.0 82.7 98.1 3.3 2.8 0.4 0.4 12.6 13.5 - -

Dena Bank Neutral 51 - 1,787 3,307 3,531 2.2 2.4 17.5 21.6 2.9 2.4 0.4 0.3 11.9 13.2 - -

Federal Bank Neutral 297 - 5,078 2,798 3,250 3.0 3.0 38.1 51.9 7.8 5.7 0.7 0.7 9.8 12.3 - -


Market Outlook

Stock Watch

September 13, 2013

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Financials

HDFC Accumulate 816 908 126,897 8,679 10,350 3.6 3.6 37.5 44.7 21.7 18.3 4.5 4.1 30.1 30.7 - -

HDFC Bank Buy 636 743 151,955 27,392 33,264 4.6 4.6 36.3 45.1 17.5 14.1 3.5 3.0 21.9 22.8 - -

ICICI Bank Buy 951 1,126 109,778 25,727 29,969 3.2 3.2 83.2 96.7 11.4 9.8 1.5 1.4 14.9 15.4 - -

IDBI Bank Neutral 59 - 7,883 9,598 10,551 2.0 2.0 15.9 22.5 3.7 2.6 0.4 0.3 10.4 13.5 - -

Indian Bank Neutral 71 - 3,056 5,940 6,396 2.7 2.7 24.9 32.9 2.9 2.2 0.3 0.3 10.3 12.4 - -

IOB Neutral 45 - 4,140 7,692 8,627 2.2 2.3 8.1 15.2 5.5 2.9 0.4 0.3 5.9 10.5 - -

J & K Bank Neutral 1,179 - 5,715 3,038 3,370 3.7 3.9 214.2 202.6 5.5 5.8 1.0 0.9 19.8 16.3 - -

LIC Housing Finance Neutral 181 - 9,150 2,001 2,495 2.2 2.3 23.8 28.8 7.6 6.3 1.3 1.1 17.3 18.2 - -

Oriental Bank Neutral 162 - 4,734 6,918 7,459 2.6 2.5 46.7 52.5 3.5 3.1 0.4 0.4 10.8 11.1 - -

Punjab Natl.Bank Neutral 494 - 17,467 20,766 23,515 3.4 3.4 135.0 164.8 3.7 3.0 0.6 0.5 14.4 15.7 - -

South Ind.Bank Neutral 21 - 2,769 1,800 2,023 2.7 2.7 3.7 4.2 5.6 4.9 0.9 0.8 16.2 16.2 - -

St Bk of India Neutral 1,658 - 113,420 65,392 74,467 3.0 3.0 178.5 226.1 9.3 7.3 1.2 1.0 12.1 14.0 - -

Syndicate Bank Neutral 73 - 4,385 6,740 7,512 2.5 2.5 21.0 23.5 3.5 3.1 0.4 0.4 12.6 12.8 - -

UCO Bank Neutral 58 - 4,377 6,770 7,017 2.8 2.6 14.8 15.5 3.9 3.7 0.7 0.6 14.4 13.5 - -

Union Bank Neutral 119 - 7,102 10,458 11,809 2.5 2.5 32.0 40.6 3.7 2.9 0.5 0.4 11.6 13.4 - -

United Bank Neutral 33 - 1,237 3,386 3,884 2.3 2.5 12.4 20.0 2.7 1.7 0.3 0.2 10.0 14.7 - -

Vijaya Bank Neutral 38 - 1,888 2,718 2,941 1.8 1.9 7.0 9.0 5.4 4.3 0.5 0.4 8.2 9.8 - -

Yes Bank Neutral 281 - 10,132 4,417 5,486 2.7 2.8 42.9 49.5 6.6 5.7 1.4 1.2 23.9 22.8 - -

FMCG

Asian Paints Neutral 438 - 41,984 12,332 14,524 16.3 16.1 13.9 16.0 31.5 27.3 10.0 8.0 35.2 32.5 3.4 2.8

Britannia Neutral 746 - 8,942 6,422 7,367 6.9 7.3 24.2 29.7 30.9 25.2 10.9 8.4 39.6 37.7 1.4 1.2

Colgate Neutral 1,219 - 16,575 3,588 4,130 18.9 19.4 41.2 48.4 29.6 25.2 26.3 20.4 100.0 91.0 4.5 3.9

Dabur India Neutral 169 - 29,523 7,183 8,297 16.8 16.9 5.4 6.3 31.7 26.9 11.1 8.8 39.2 36.7 4.2 3.6

GlaxoSmith Con* Neutral 4,748 - 19,966 3,617 4,259 16.1 16.4 122.2 148.7 38.9 31.9 12.1 9.7 34.1 33.7 5.1 4.3

Godrej Consumer Neutral 846 - 28,789 7,801 9,017 16.2 15.9 25.1 29.7 33.7 28.5 7.3 6.0 24.9 24.2 3.8 3.2

HUL Neutral 627 - 135,539 28,415 31,962 13.6 14.1 16.7 18.2 37.6 34.5 36.1 26.2 112.2 88.1 4.8 4.2

ITC Neutral 336 - 265,992 34,294 39,991 36.8 37.0 11.3 13.3 29.8 25.2 9.8 7.9 36.1 34.9 7.3 6.2

Marico Neutral 214 - 13,793 5,104 5,876 15.1 15.2 7.2 8.6 29.9 24.9 5.8 4.8 21.1 20.9 2.7 2.3

Nestle* Neutral 4,973 - 47,951 9,330 10,860 21.8 21.9 123.3 149.7 40.3 33.2 19.8 14.5 56.4 50.3 5.3 4.5

Tata Global Neutral 151 - 9,322 8,070 8,958 9.8 9.9 7.6 8.5 19.9 17.7 2.3 2.2 9.3 9.7 1.2 1.0


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IT

HCL Tech^ Neutral 1,074 - 74,834 32,266 35,103 23.5 22.6 69.7 74.0 15.4 14.5 4.2 3.4 26.5 23.0 2.1 1.8

Hexaware* Neutral 126 - 3,774 2,273 2,575 22.2 21.5 12.4 13.4 10.2 9.4 2.6 2.2 25.4 23.5 1.5 1.3

Infosys Neutral 3,064 - 175,952 48,731 52,962 26.9 27.1 180.8 200.3 17.0 15.3 3.7 3.1 20.4 19.3 3.0 2.7

Infotech Enterprises Neutral 185 - 2,066 2,128 2,341 17.2 17.6 21.3 23.2 8.7 8.0 1.3 1.2 14.9 14.0 0.6 0.5

KPIT Cummins Accumulate 147 155 2,839 2,769 3,122 18.3 17.8 15.3 16.6 9.6 8.8 2.0 1.6 20.9 18.4 1.0 0.8

Mindtree Neutral 1,060 - 4,404 2,871 3,110 20.4 20.7 102.6 111.2 10.3 9.5 2.5 2.0 24.8 20.3 1.2 1.0

Mphasis& Neutral 439 - 9,221 6,826 7,373 18.1 17.2 41.1 43.5 10.7 10.1 1.6 1.4 14.3 14.2 0.9 0.7

NIIT Neutral 21 - 353 1,144 1,267 9.0 9.1 4.3 5.4 5.0 4.0 0.5 0.5 10.3 12.0 0.1 -

Persistent Neutral 605 - 2,419 1,590 1,774 23.5 23.8 48.5 56.9 12.5 10.6 2.0 1.7 16.4 16.1 1.1 0.9

TCS Neutral 1,968 - 385,083 82,186 91,561 30.5 30.0 92.2 103.2 21.3 19.1 7.0 5.6 31.5 29.2 4.5 4.0

Tech Mahindra Accumulate 1,310 1,531 30,438 17,823 19,729 22.5 21.4 113.1 117.7 11.6 11.1 3.4 2.7 27.9 22.1 1.5 1.2

Wipro Neutral 472 - 116,442 43,610 47,320 21.6 22.2 30.0 33.0 15.8 14.3 3.5 3.0 20.7 19.4 2.2 1.9

Media

D B Corp Accumulate 251 267 4,606 1,783 1,968 23.8 25.0 13.6 16.0 18.5 15.7 4.5 3.9 22.5 22.9 2.5 2.2

HT Media Buy 87 112 2,055 2,205 2,380 14.1 14.4 7.6 8.4 11.5 10.4 1.3 1.2 10.7 10.7 0.6 0.5

Jagran Prakashan Buy 82 104 2,730 1,683 1,845 19.7 20.8 5.9 6.9 14.0 11.9 2.6 2.4 19.4 21.2 1.7 1.5

PVR Neutral 432 - 1,716 1,359 1,540 17.3 17.4 17.2 21.6 25.1 20.1 2.5 2.3 10.3 12.0 1.7 1.5

Sun TV Network Neutral 390 - 15,377 2,287 2,551 69.7 70.5 20.0 23.3 19.5 16.8 4.8 4.2 26.4 27.3 6.5 5.7

Metals & Mining

Bhushan Steel Reduce 478 419 10,816 12,640 15,667 28.5 31.5 25.9 38.6 18.5 12.4 1.1 1.0 6.1 8.5 2.7 2.2

Coal India Neutral 285 - 179,953 68,303 69,884 32.5 30.3 27.5 25.0 10.4 11.4 3.9 2.8 40.2 33.1 1.9 1.8

Electrosteel Castings Buy 12 15 391 1,976 2,017 11.8 12.7 0.1 1.2 187.4 9.9 0.1 - 0.1 1.9 0.6 0.1

GMDC Buy 86 115 2,749 1,701 1,985 47.8 48.8 17.4 20.6 5.0 4.2 1.0 0.8 20.7 20.9 1.1 0.8

Hind. Zinc Accumulate 130 143 54,824 12,389 13,093 48.5 51.7 15.2 17.0 8.5 7.6 1.5 1.3 18.5 18.0 2.2 1.8

Hindalco Neutral 111 - 21,281 95,465 102,491 8.4 9.0 13.9 17.2 8.0 6.5 0.6 0.5 7.6 8.7 0.6 0.5

JSW Steel Neutral 625 - 15,098 45,022 48,140 16.0 15.9 68.5 77.0 9.1 8.1 0.8 0.8 9.3 9.7 0.8 0.8

MOIL Neutral 216 - 3,631 956 982 42.3 44.3 25.3 26.2 8.6 8.2 1.2 1.1 14.6 13.7 1.2 1.3

Monnet Ispat Accumulate 127 139 810 2,199 2,575 21.6 22.8 30.7 38.6 4.1 3.3 0.3 0.3 7.7 8.9 1.5 1.1

Nalco Neutral 33 - 8,492 7,270 7,521 13.6 13.8 2.8 2.9 11.9 11.4 0.7 0.7 5.9 6.0 0.6 0.6

NMDC Accumulate 124 142 49,024 10,718 11,514 66.6 64.5 15.5 16.1 8.0 7.7 1.6 1.5 21.2 20.0 2.5 2.3

SAIL Neutral 49 - 20,341 44,060 54,227 9.2 10.9 5.3 6.8 9.3 7.3 0.5 0.5 5.2 6.5 0.7 0.6


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Metals & Mining

Sesa Goa* Neutral 183 - 54,283 3,817 5,781 12.1 17.7 27.0 29.6 6.8 6.2 0.8 0.7 12.9 12.5 15.5 10.2

Tata Steel Neutral 303 - 29,423 153,862 167,209 9.4 10.5 32.8 53.5 9.2 5.7 0.8 0.7 9.0 13.2 0.5 0.5

Sarda Accumulate 89 98 320 1,323 1,398 17.2 17.9 25.3 27.8 3.5 3.2 0.3 0.3 9.5 9.6 0.6 0.5

Prakash Industries Accumulate 32 37 436 2,486 2,637 15.2 15.0 13.7 14.2 2.4 2.3 0.2 0.2 9.1 8.7 0.4 0.4

Godawari Power andIspat

Neutral 83 - 271 2,171 2,317 14.9 15.8 36.4 46.6 2.3 1.8 0.2 0.2 11.6 13.0 0.5 0.5

Oil & Gas

Cairn India Accumulate 319 364 60,944 18,403 17,925 71.9 62.1 62.1 57.4 5.1 5.6 1.1 0.9 22.6 17.8 2.1 1.9GAIL Neutral 309 - 39,171 49,700 48,822 16.0 16.6 32.9 33.4 9.4 9.2 1.4 1.3 15.9 14.4 0.3 0.2

ONGC Buy 279 350 238,998 164,816 196,050 33.7 36.6 30.0 38.7 9.3 7.2 1.4 1.3 16.0 18.5 1.2 0.9

Rel iance Industries Accumulate 874 953 282,342 417,018 442,434 8.4 8.4 70.3 75.2 12.4 11.6 1.3 1.2 12.0 11.6 0.7 0.6

Gujarat Gas* Neutral 212 - 2,715 3,270 3,414 12.8 12.6 22.6 23.1 9.4 9.2 2.5 2.2 28.2 25.6 0.7 0.6

Indraprastha Gas Neutral 273 - 3,819 3,656 4,456 21.5 18.6 25.7 26.8 10.6 10.2 2.2 1.9 22.1 19.6 1.0 0.8

Petronet LNG Accumulate 119 135 8,918 39,449 43,315 5.3 5.9 14.1 16.9 8.5 7.0 1.7 1.4 21.7 21.9 0.3 0.3

Gujarat State PetronetLtd.

Buy 50 67 2,822 1,002 1,021 91.4 91.5 8.2 8.4 6.1 6.0 0.8 0.7 14.3 13.0 2.3 2.1

Pharmaceuticals

Alembic Pharma Buy 136 165 2,571 1,736 2,008 17.1 18.9 10.5 13.8 13.0 9.9 4.0 3.0 34.4 34.7 1.6 1.3

Aurobindo Pharma Buy 183 271 5,322 6,641 7,637 15.9 15.9 17.3 20.6 10.6 8.9 1.7 1.4 19.5 18.9 1.3 1.1

Aventis* Neutral 2,386 - 5,496 1,682 1,917 15.6 15.6 91.9 101.7 26.0 23.5 3.7 3.6 15.6 17.1 2.8 2.3

Cadila Healthcare Buy 664 894 13,598 7,123 8,367 15.5 15.7 37.3 44.7 17.8 14.9 3.7 3.1 22.9 22.9 2.2 1.9

Cipla Accumulate 438 477 35,128 9,274 10,796 23.1 23.1 21.0 23.8 20.8 18.4 3.3 2.9 17.2 16.8 3.5 2.9

Dr Reddy's Accumulate 2,243 2,535 38,123 13,377 15,350 20.4 20.1 112.1 126.6 20.0 17.7 4.3 3.5 23.5 21.8 2.9 2.5

Dishman Pharma Buy 47 73 380 1,394 1,534 22.5 22.4 14.8 16.6 3.2 2.8 0.3 0.3 10.8 11.0 0.9 0.7

GSK Pharma* Neutral 2,405 - 20,371 2,744 2,964 22.0 23.4 59.2 66.6 40.6 36.1 10.1 9.7 24.9 27.5 6.6 6.1

Indoco Remedies Buy 66 78 608 747 906 15.3 15.3 5.9 7.6 11.2 8.7 1.3 1.2 12.5 14.4 1.1 0.9

Ipca labs Neutral 695 - 8,771 3,296 4,087 20.5 21.7 36.8 48.3 18.9 14.4 4.5 3.5 26.5 27.3 2.8 2.2

Lupin Accumulate 866 904 38,787 11,576 13,855 22.0 22.0 35.8 43.0 24.2 20.1 5.9 4.7 27.1 25.8 3.4 2.8

Ranbaxy* Reduce 457 426 19,345 10,400 11,331 6.6 8.4 11.4 15.2 40.1 30.1 4.2 3.7 11.1 13.1 1.9 1.7

Sun Pharma Neutral 556 - 115,164 13,509 15,846 41.0 41.0 16.5 19.9 33.7 27.9 6.8 5.6 22.0 22.0 8.1 6.7

Power

GIPCL Accumulate 59 65 889 1,444 1,482 33.4 33.0 13.7 14.8 4.3 4.0 0.5 0.5 12.3 12.0 0.7 0.4

NTPC Buy 139 163 114,653 75,046 81,780 23.5 23.9 12.7 13.6 11.0 10.2 1.3 1.2 12.2 12.0 2.2 2.2

Real Estate

DLF Buy 149 179 26,556 8,293 9,622 36.5 36.1 5.7 6.7 26.1 22.1 0.9 0.9 3.7 4.1 5.3 4.4


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Real Estate

MLIFE Buy 417 483 1,703 888 1,002 27.0 29.9 33.9 42.1 12.3 9.9 1.2 1.1 9.9 11.2 2.5 2.2

Telecom

Bharti Airtel Neutral 329 - 131,514 83,535 92,173 32.0 33.1 9.2 12.9 35.9 25.5 2.3 2.1 6.8 8.9 2.3 2.0

Idea Cellular Neutral 164 - 54,278 26,717 29,443 30.6 29.8 5.5 6.7 30.1 24.3 3.3 2.9 11.1 12.0 2.4 2.1

Rcom Neutral 141 - 29,144 22,050 23,647 30.6 30.8 3.2 5.2 44.2 27.1 0.9 0.8 1.9 3.1 3.0 2.7

Others

Abbott India* Buy 1,379 1,628 2,931 1,788 1,996 12.5 12.7 71.7 81.4 19.2 17.0 3.9 3.3 21.7 21.2 1.4 1.2

Bajaj Electricals Accumulate 166 184 1,653 3,885 4,472 4.0 5.8 6.8 15.4 24.6 10.8 2.2 1.9 8.8 17.3 0.4 0.4

Cera Sanitaryware Buy 506 613 640 631 797 14.5 13.7 42.6 51.1 11.9 9.9 2.8 2.3 26.5 25.3 1.0 0.8

Cravatex Accumulate 267 307 69 248 284 6.5 7.3 27.2 38.2 9.8 7.0 1.6 1.3 15.7 18.5 0.5 0.4

Finolex Cables Buy 52 68 791 2,563 2,899 9.8 9.8 10.1 11.3 5.1 4.6 0.7 0.6 14.3 13.8 0.2 0.2

Force Motors Accumulate 301 349 392 2,304 2,649 3.1 3.6 28.0 43.7 10.8 6.9 0.3 0.3 3.1 4.7 0.1 0.1

Goodyear India* Accumulate 303 345 698 1,458 1,542 8.3 9.0 32.3 37.0 9.4 8.2 1.7 1.5 19.5 19.3 0.3 0.2

Hitachi Buy 116 153 315 1,080 1,199 8.9 9.1 18.3 19.1 6.3 6.1 1.1 1.0 19.2 17.0 0.4 0.4

Honeywell Automation* Neutral 2,525 - 2,232 1,842 2,131 7.7 7.8 111.1 130.9 22.7 19.3 2.9 2.5 13.3 13.9 1.1 1.0

IFB Agro Accumulate 141 156 127 491 642 12.3 13.8 35.0 50.9 4.0 2.8 0.7 0.5 18.2 21.6 0.2 0.1

ITD Cementation Buy 158 194 182 1,365 1,502 10.9 11.2 18.2 28.0 8.7 5.7 0.4 0.4 5.1 7.4 0.6 0.5

Jyothy Laboratories Buy 144 199 2,382 1,244 1,523 14.1 14.2 5.9 10.0 24.2 14.4 2.9 2.5 12.7 18.8 2.4 1.8

MRF Buy 12,893 16,218 5,468 11,799 12,587 14.1 13.5 1,792.0 1,802.0 7.2 7.2 1.5 1.3 23.5 19.2 0.6 0.5

Page Industries Buy 4,097 4,669 4,570 1,059 1,296 19.5 19.8 125.0 155.6 32.8 26.3 16.2 11.9 56.3 52.2 4.3 3.5

Relaxo Footwears Buy 706 981 847 1,196 1,401 11.9 12.6 55.6 75.4 12.7 9.4 3.0 2.3 27.1 28.1 0.9 0.7

Siyaram Silk Mills Buy 194 228 182 1,158 1,322 10.6 11.0 60.5 75.9 3.2 2.6 0.5 0.4 16.8 18.1 0.4 0.3

Styrolution ABS India* Buy 370 492 651 1,007 1,108 8.4 8.7 30.3 35.1 12.2 10.5 1.4 1.2 11.7 12.2 0.6 0.6

TAJ GVK Buy 56 108 352 300 319 35.8 36.2 7.9 9.1 7.1 6.2 0.9 0.8 13.9 14.4 1.5 1.3

Tata Sponge Iron Buy 275 371 424 814 849 17.0 17.6 64.6 69.2 4.3 4.0 0.6 0.5 14.5 13.8 0.1 (0.1)

TTK Healthcare Buy 505 632 392 416 481 4.5 6.1 16.2 25.3 31.2 19.9 3.8 3.4 12.6 18.1 0.8 0.7

Tree House Buy 236 297 850 153 194 53.0 52.8 12.4 15.6 19.1 15.1 2.3 2.0 11.8 13.1 5.7 4.4

TVS Srichakra Buy 183 230 140 1,591 1,720 6.1 6.4 30.5 38.3 6.0 4.8 0.8 0.7 13.5 15.5 0.3 0.3

United Spirits Neutral 2,561 - 37,216 12,294 14,162 12.0 12.0 42.1 67.7 60.8 37.8 4.3 3.9 9.1 10.7 3.4 2.9

Vesuvius India* Buy 355 439 721 600 638 20.1 19.4 35.7 36.6 10.0 9.7 1.8 1.6 19.4 17.1 1.0 0.9

HSIL Buy 85 117 561 2,042 2,363 14.6 14.8 12.3 16.5 6.9 5.2 0.5 0.5 7.6 9.4 0.7 0.6

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on September 12, 2013*Note: Sesa Goa's numbers reflect the standalone Sesa Goa business only. We will revise our numbers once the consolidated entity Sesa- Sterlite is formed.


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Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com

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