Market Outlook 230512

7/31/2019 Market Outlook 230512

1/13

Market OutlookMay 23, 2012

www.angelbroking.com


Dealers Diary

The domestic markets are expected to open in red tracking negative cues from

global markets. Asian markets fell early today, with European concerns bruising

sentiment, while a downgrade of Japans credit rating and disappointing trade

data weighed in Tokyo.

US markets, after seeing a positive bias throughout much of the session, stocks

showed a notable move to the downside in the latter part of the trading day on

Tuesday. Buying interest reemerged in the final minutes of trading, however, but

the markets ended the day roughly flat. European markets began the session to the

upside and continued to advance after the positive open in the US markets and the

US housing report. Concerns over the euro debt crisis eased ahead of the EU

summit, which is scheduled to take place today.

Indian shares fell on Tuesday, erasing early gains, as the retreat in the rupee

despite RBI's latest measures to curb speculation in the currency futures market

sparked fears of fresh capital outflows. After a brief rebound in the morning

session, the rupee was last trading down at a record low of 55.39 versus the

dollar, increasing calls for special foreign exchange bonds to be sold by the

government to stop the rupee's drop in spot markets.

Markets Today

The trend deciding level for the day is 16,131 / 4,889 levels. If NIFTY trades above

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

up to 16,262 16,497 / 4,928 4,995 levels. However, if NIFTY trades below

16,131 / 4,821 levels for the first half-an-hour of trade then it may correct up to

15,896 15,765 / 4,821 4,782 levels.

SENSEX 15,765 15,896 16,131 16,262 16,497

NIFTY 4,782 4,821 4,889 4,928 4,995

News Analysis

4QFY2012 Result Previews BHEL, Tech Mahindra, Tata GlobalRefer detailed news analysis on the following page

Net Inflows (May 21, 2012)

FII 1,330 1,389 (59) (389) 43,072

MFs 310 206 104 39 (6,062)

FII Derivatives (May 22, 2012)

Index Futures 1,795 1,223 572 11,824

Stock Futures 1,901 1,654 247 21,871

Gainers / Losers

Wockhardt 718 7.8 IVRCL LTD 41 (9.6)

Glenmark Pharma 357 4.6 Idea Cellular 78 (5.5)

Apollo Hosp 632 2.5 Tata Power 90 (5.3)

Oracle Fin 2,420 2.2 Central Bank 72 (5.0)

Godrej Cons 565 2.2 Sesa Goa 184 (4.8)

BSE Sensex (1.0) (156.9) 16,026

Nifty (0.9) (45.6) 4,861

MID CAP (0.6) (34.5) 5,854

SMALL CAP (0.7) (42.7) 6,275

BSE HC (0.5) (34.1) 6,602

BSE PSU (1.0) (67.7) 6,616

BANKEX (1.5) (164.2) 10,679

AUTO (0.8) (73.7) 9,203

METAL (1.8) (185.0) 9,934

OIL & GAS (0.6) (42.0) 7,462

BSE IT 0.5 24.9 5,471

Dow Jones (0.0) (1.7) 12,503NASDAQ (0.3) (8.1) 2,839

FTSE 1.9 98.8 5,403

Nikkei 1.1 95.4 8,729

Hang Seng 0.6 116.8 19,039

Straits Times 1.2 33.6 2,824

Shanghai Com 1.1 25.0 2,373

INFY 1.3 0.6 $42.9

WIT (0.1) (0.0) $8.7IBN (1.8) (0.5) $28.9

HDB (4.4) (1.3) $28.4

Advances 1,052 509

Declines 1,615 889

Unchanged 133 88

BSE 1,855

NSE 9,031


2/13



Result Previews

We expect BHEL to post top-line growth of 14.0% yoy to `20,954cr for 4QFY2012.

This growth is on the back of its strong order book of ~`1.4tn, which providesrevenue visibility for the next couple of years. On the EBITDA front, the companys

margin is expected to compress by ~186bp yoy to 21.5%. Despite healthy growth,

margin erosion is expected to restrain the companys bottom-line growth to 9.2%

yoy to `3,054cr.

Tech Mahindra is slated to report its 4QFY2012 results. We expect the company to

record 0.4% qoq growth in dollar revenue to US$290mn, majorly led by volume

growth. Revenue from BT account is expected to decline by 2% qoq and non-BT

business is expected to post 1.7% qoq growth. EBITDA margin is expected to

decline by 22bp qoq to 16.0%. PAT, excluding earnings from Mahindra Satyam, is

expected to settle at `162cr.

Tata Global is set to announce its 4QFY2012 results. We expect the companys

consolidated top line to grow by 6.6% yoy to`

1,660cr. OPM is expected to growby 343bp yoy to 11.7%, aided by focus on branded products. Net profit is

expected to grow by 122.1% yoy to `65cr.


3/13



Quarterly Bloomberg Brokers Consensus Estimate

Net sales 1,687 1,567 8 1,793 (6)

EBITDA 180 158 14 181 (1)

EBITDA margin (%) 10.7 10.1 10.1

Net profit 70 85 (17) 64 10

Net profit 759 700 8 770 (1)

Net sales 545 495 10 457 19

EBITDA 179 156 15 140 28

EBITDA margin (%) 32.8 31.5 30.6

Net profit 188 187 1 204 (8)

Net sales 60,391 48,312 25 61,456 (2)

EBITDA 4,400 2,174 102 4,126 7

EBITDA margin (%) 7.3 4.5 6.7

Net profit 3,659 935 291 3,140 17

Net sales 3,247 2,999 8 3,119 4

EBITDA 264 382 (31) 198 33


Net profit 164 251 (35) 77 113

Net sales 861 709 21 862 (0)

EBITDA 435 460 (5) 379 15

EBITDA margin (%) 50.5 64.9 44.0

Net profit 224 301 (25) 212 6

Net sales 6,162 3,696 67 6,129 1

EBITDA 807 586 38 955 (15)EBITDA margin (%) 13.1 15.9 15.6

Net profit 451 411 10 408 11


4/13



Net sales 5,840 7,276 (20) 4,986 17

EBITDA 531 1,053 (50) 360 48


Net profit 45 432 (90) (302) (115)

Economic and Political News

Rupee crashes to new low amid calls for special bond sale Law Ministry wants government to fix gas price India's economic growth to quicken in 2013 OECD Bill seeking interest rate cap on micro finance lending introduced in

Parliament

Corporate News

RIL ropes in Phillips 66 technology for Jamnagar plants Genpact inks finance, accounting deal with Dr. Reddy's Apollo Tyres expands capacity of South Africa units by 20-30% Piramal completes Phase-I trials of new cancer moleculeSource: Economic Times, Business Standard, Business Line, Financial Express, Mint


5/13

Date Company

May 23, 2012 Rural Elec.Corp., Tech Mahindra, Tata Global, LMW, Jyothy Laboratories

May 24, 2012 Reliance Power, GSPL, TVS Motor, Madras Cements, Hitachi

May 25, 2012 ITC, NHPC, BPCL, Reliance Infra., Sun TV Network, Crompton Greaves, Suzlon Energy, MOIL, Jyoti Structures

May 26, 2012 Rcom, Jagran Prakashan, Sarda Energy, TVS Srichakra

May 27, 2012 -

May 28, 2012NMDC, IOC, Motherson Sumi, Bharat Forge, Britannia, Bajaj Electrical, Amara Raja Batteries, Indoco Remedies,Subros

May 29, 2012ONGC, Tata Motors, Sun Pharma, Power Grid Corpn, SAIL, United Spirits, HPCL, GMR Infra., Aurobindo Pharma,Ipca labs, Nagarjuna Const., Prakash Industries, PVR

May 30, 2012GAIL, M&M, DLF, Jaiprakash Asso., Colgate, Tata Chemicals, HDIL, Page Industries, BGR Energy , PTC India, AnantRaj, GIPCL, Simplex Infra, SpiceJet, Greenply

May 31, 2012 -

June 01, 2012 Mphasis

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

May 23, 2012 US New home sales Thousands Mar-12 328.00 335.00

May 24, 2012 US Initial Jobless claims Thousands 12-May-12 370.00 370.00

Germany GDP nsa (YoY) % Change Mar-12 1.70 1.70

Germany PMI Services Value Apr-12 52.20 52.00

Germany PMI Manufacturing Value Apr-12 46.20 47.00

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

May 29, 2012 US Consumer Confidence

S.A./

1985=100 Apr-12 69.20 70.00

May 30, 2012 Euro ZoneEuro-Zone ConsumerConfidence

Value May-12 (19.30) --

May 31, 2012 Germany Unemployment change (000's) Thousands Apr-12 19.00 --

US GDP Qoq (Annualised) % Change Mar-12 2.20 1.90

India Qtrly GDP YoY% % Change - 6.10 --

June 01, 2012 US Change in Nonfarm payrolls Thousands Apr-12 115.00 150.00

US Unnemployment rate % Apr-12 8.10 8.10

China PMI Manufacturing Value Apr-12 53.30 52.50

India Imports YoY% % Change Mar-12 24.28 --

India Exports YoY% % Change Mar-12 (5.71) --

UK PMI Manufacturing Value Apr-12 50.50 --

June 06, 2012 Euro Zone Euro-Zone GDP s.a. (QoQ) % Change Mar-12 -- --

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

June 07, 2012 UK BOE Announces rates % Ratio May-12 0.50 0.50

June 09, 2012 China Industrial Production (YoY) % Change Apr-12 9.30 --

China Consumer Price Index (YoY) % Change Apr-12 3.40 --

June 10, 2012 China Exports YoY% % Change Apr-12 4.90 --



May 23, 2012

Market Outlook


6/13

Market StrategyMay 23, 2012


Macro watch

Exhibit 1:Quarterly GDP trends

5.8 5.9

7.5

9.8

7.4

9.4

8.5

7.6

8.3

7.8 7.7

6.9

6.1

5.0

6.0

7.0

8.0

9.0

10.0

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

(%)

Source: CSO, Angel Research

Exhibit 2:IIP trends

5.36.2

9.5

3.7 3.42.5

(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-1

1

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

(%)

Source: MOSPI, Angel Research

Exhibit 3:Monthly WPI inflation trends

9.6 9.5 9.4 9.810.0 9.9 9.5

7.76.9

7.46.9 7.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

May-1

1

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

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

Apr-

11

May-1

1

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

Apr-

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

90

Apr-

11

May-1

1

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

Exports yoy growth Imports yoy growth(%)


Exhibit 6:Key policy rates8.00

7.00

4.75

4.00

5.00

6.00

7.00

8.00

9.00

May-1

1

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

Apr-

12

May-1

2

Repo rate Reverse Repo rate CRR(%)

Source: RBI, Angel Research


7/13

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 128 - 2,485 1,432 1,647 14.7 14.7 7.0 8.0 18.3 16.0 3.9 3.3 22.8 22.3 1.7 1.4

United Phosphorus Buy 116 183 5,347 8,191 8,764 16.5 16.5 17.1 18.3 6.8 6.3 1.1 1.0 17.5 16.2 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Buy 278 345 2,378 2,691 3,032 15.6 15.5 29.4 32.8 9.5 8.5 2.2 1.8 26.5 23.6 0.8 0.7

Apollo Tyres Buy 83 100 4,166 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 25 33 6,572 14,798 16,687 9.6 9.6 2.4 3.0 10.2 8.3 2.0 1.8 14.8 16.5 0.5 0.4

Automotive Axle Accumulate 462 514 698 1,211 1,387 12.1 11.7 50.3 57.1 9.2 8.1 2.3 1.9 27.8 25.7 0.6 0.5Bajaj Auto Buy 1,508 1,835 43,628 22,118 24,889 19.0 18.6 115.7 126.5 13.0 11.9 5.2 4.2 45.0 38.9 1.6 1.3

Bharat Forge Buy 308 372 7,177 7,173 7,998 16.3 16.5 22.3 26.6 13.8 11.6 2.7 2.3 21.0 21.0 1.1 0.9

Bosch India Accumulate 8,933 9,429 28,049 9,390 10,716 19.5 19.1 420.2 471.4 21.3 19.0 4.9 4.1 23.3 21.8 2.7 2.3

CEAT Buy 92 164 315 5,067 5,631 8.0 7.6 39.4 41.0 2.3 2.2 0.4 0.3 18.8 16.5 0.3 0.3

Exide Industries Buy 118 146 10,051 5,787 6,595 15.5 17.0 7.1 9.0 16.6 13.2 2.9 2.5 18.6 20.3 1.4 1.2

FAG Bearings Neutral 1,552 - 2,579 1,531 1,748 18.8 18.5 118.0 132.8 13.2 11.7 2.9 2.3 24.0 21.9 1.4 1.2

Hero Motocorp Buy 1,861 2,280 37,157 26,106 29,296 15.0 15.2 140.3 148.1 13.3 12.6 6.3 4.8 54.8 43.3 1.1 0.9

JK Tyre Buy 77 113 315 8,058 9,025 5.4 5.5 24.8 32.2 3.1 2.4 0.3 0.3 11.4 13.2 0.3 0.3

Mahindra and Mahindra Buy 639 793 39,208 34,740 39,263 10.7 11.0 44.9 51.7 14.2 12.4 2.5 2.2 18.9 19.1 0.8 0.7

Maruti Buy 1,153 1,510 33,317 42,683 48,736 7.1 7.5 86.6 100.6 13.3 11.5 1.9 1.7 15.3 15.5 0.6 0.5

Motherson Sumi Buy 167 216 6,454 11,167 12,516 9.5 10.0 11.3 14.4 14.7 11.6 3.2 2.6 23.3 24.7 0.7 0.6

Subros Neutral 31 - 187 1,225 1,393 8.5 8.2 4.2 5.0 7.4 6.3 0.8 0.7 10.3 11.8 0.4 0.3

Tata Motors Buy 265 312 71,272 191,183 210,301 12.8 12.8 39.4 43.6 6.7 6.1 2.4 1.9 40.4 34.3 0.5 0.4

TVS Motor Buy 34 55 1,596 7,982 8,816 6.4 6.3 5.0 5.6 6.7 6.1 1.2 1.0 18.9 18.2 0.2 0.2

Capital Goods

ABB* Sell 724 498 15,332 8,760 10,023 6.4 6.4 18.2 20.7 39.7 34.9 5.3 4.8 14.4 14.6 1.7 1.5BGR Energy Reduce 289 274 2,084 4,170 5,396 11.5 10.4 27.2 30.4 10.6 9.5 1.8 1.6 17.3 17.4 1.1 1.0

BHEL Neutral 209 - 51,057 46,344 46,916 18.3 18.6 23.5 24.1 8.9 8.7 1.8 1.5 21.3 18.9 1.0 0.9

Blue Star Buy 167 221 1,503 3,250 3,551 5.9 5.9 12.4 15.8 13.4 10.6 2.8 2.3 21.2 23.8 0.6 0.4

Crompton Greaves Buy 115 164 7,403 12,936 14,101 9.6 10.0 10.9 11.7 10.6 9.8 1.8 1.6 18.4 17.3 0.6 0.5

Jyoti Structures Buy 38 67 315 2,622 2,801 10.6 11.0 10.9 13.4 3.5 2.9 0.4 0.4 12.7 13.9 0.3 0.3

KEC International Buy 51 73 1,319 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 1,570 2,609 1,768 2,663 3,130 12.8 12.8 185.0 217.4 8.5 7.2 1.7 1.5 21.2 21.7 0.2 0.1

Thermax Neutral 435 - 5,179 5,514 5,559 8.3 8.0 29.7 28.4 14.7 15.3 2.8 2.5 20.2 16.9 0.8 0.8


May 23, 2012

Market Outlook

Stock Watch


8/13



Cement

ACC Neutral 1,130 - 21,211 11,018 12,663 19.9 21.2 70.7 81.2 16.0 13.9 2.8 2.5 18.0 19.0 1.7 1.4

Ambuja Cements Neutral 140 - 21,530 10,035 11,504 23.5 23.8 10.1 10.6 13.9 13.3 2.7 2.5 18.5 19.4 1.8 1.5

India Cements Neutral 72 - 2,210 4,423 4,906 18.2 18.8 9.9 12.7 7.3 5.7 0.6 0.6 8.6 10.5 0.8 0.7

J K Lakshmi Cements Buy 63 79 770 1,880 2,201 19.0 22.6 12.2 16.4 5.2 3.8 0.6 0.5 11.9 14.3 0.6 0.9

Madras Cements Neutral 138 - 3,276 3,434 3,777 25.5 26.1 14.1 18.1 9.8 7.6 1.4 1.2 15.2 16.9 1.6 1.3

Shree Cements Neutral 2,569 - 8,950 5,465 6,249 24.3 23.7 151.5 222.1 17.0 11.6 4.1 3.5 21.6 25.8 1.3 1.0

UltraTech Cement Neutral 1,380 - 37,831 20,116 22,655 21.3 22.5 82.1 97.5 16.8 14.2 2.7 2.3 16.8 17.4 1.8 1.8Construction

Ashoka Buildcon Buy 199 302 1,048 2,014 2,294 22.4 22.4 28.4 30.8 7.0 6.5 0.9 0.8 14.1 13.3 2.3 2.6

Consolidated Co Neutral 14 - 260 2,526 2,792 5.7 6.6 1.8 2.8 7.6 5.0 0.4 0.4 5.5 8.1 0.3 0.3

Hind. Const. Neutral 18 - 1,095 4,239 4,522 11.1 11.8 (1.8) (0.8) (10.1) (23.1) 1.0 1.2 (9.5) (4.7) 1.3 1.2

IRB Infra Buy 112 166 3,737 3,821 4,582 42.3 40.2 15.0 16.9 7.5 6.6 1.1 1.0 16.1 15.8 2.6 2.4

ITNL Buy 164 265 3,176 6,619 7,925 23.8 23.3 22.0 26.7 7.4 6.1 1.0 0.9 14.9 15.9 2.2 2.1

IVRCL Infra Buy 41 79 1,083 5,758 6,860 9.2 9.2 4.7 6.0 8.7 6.7 0.5 0.5 6.0 7.3 0.7 0.6

Jaiprakash Asso. Buy 61 104 13,014 16,017 18,359 24.4 23.5 4.2 5.0 14.6 12.2 1.2 1.1 8.8 9.7 2.2 1.9

Larsen & Toubro Buy 1,163 1,553 71,231 59,559 69,089 12.1 11.5 70.8 76.5 16.4 15.2 2.5 2.2 16.1 15.3 1.4 1.2

Madhucon Proj Buy 47 70 344 2,206 2,502 10.7 10.7 4.6 4.7 10.1 10.0 0.5 0.5 5.2 5.0 0.7 0.7

Nagarjuna Const. Buy 31 76 804 5,790 7,022 9.2 9.5 3.5 5.4 9.0 5.8 0.3 0.3 3.7 5.6 0.8 0.7

Patel Engg. Neutral 85 - 590 3,609 3,836 13.1 13.1 14.0 14.6 6.0 5.8 0.4 0.4 6.3 6.1 1.0 1.1

Punj Lloyd Neutral 45 - 1,493 10,592 12,193 8.4 8.4 2.9 4.6 15.5 9.9 0.5 0.5 3.9 3.1 0.6 0.6

Sadbhav Engg. Buy 126 199 1,893 2,989 3,315 10.6 10.6 10.2 11.3 12.4 11.2 2.0 1.7 17.6 16.3 0.8 0.8

Simplex Infra Buy 210 316 1,039 6,732 7,902 9.3 9.6 27.2 35.1 7.7 6.0 0.8 0.7 11.0 12.6 0.5 0.4

FinancialsAllahabad Bank Accumulate 143 166 7,163 7,392 8,542 3.1 3.1 38.3 42.1 3.7 3.4 0.7 0.6 18.4 17.6 - -

Andhra Bank Neutral 104 - 5,797 5,151 5,843 3.2 3.1 22.4 25.7 4.6 4.0 0.7 0.6 15.8 16.0 - -

Axis Bank Buy 966 1,476 39,979 16,157 19,557 3.2 3.2 116.4 139.1 8.3 7.0 1.5 1.3 20.0 20.3 - -

Bank of Baroda Buy 670 925 26,249 15,993 18,918 2.6 2.6 127.3 149.9 5.3 4.5 0.9 0.8 17.8 18.2 - -

Bank of India Buy 308 411 17,698 13,558 15,551 2.5 2.4 61.6 70.8 5.0 4.4 0.8 0.7 16.8 16.9 - -

Bank of Maharashtra Accumulate 48 53 2,812 3,580 4,050 3.2 3.2 11.5 13.1 4.1 3.6 0.7 0.6 17.4 17.2 - -

Canara Bank Buy 392 522 17,370 12,061 13,906 2.3 2.3 83.1 92.7 4.7 4.2 0.8 0.7 16.7 16.4 - -

Central Bank Neutral 72 - 5,289 6,838 7,912 2.3 2.4 13.8 20.3 5.2 3.5 0.8 0.7 10.9 14.4 - -


May 23, 2012

Market Outlook

Stock Watch


9/13



Financials

Corporation Bank Buy 405 486 5,997 5,203 5,880 2.2 2.1 107.5 112.7 3.8 3.6 0.7 0.6 17.9 16.5 - -

Dena Bank Buy 85 111 2,958 3,149 3,522 2.8 2.8 23.3 26.1 3.6 3.2 0.6 0.5 17.7 17.0 - -

Federal Bank Neutral 405 - 6,925 2,743 3,131 3.4 3.3 49.7 57.4 8.2 7.1 1.1 1.0 14.1 14.6 - -

HDFC Neutral 643 - 94,950 7,393 8,844 3.5 3.4 31.7 37.9 20.3 16.9 4.1 3.6 34.7 31.9 - -

HDFC Bank Accumulate 489 567 114,837 21,831 27,477 4.3 4.3 28.3 35.5 17.3 13.8 3.3 2.8 20.8 22.1 - -

ICICI Bank Buy 801 1,174 92,043 22,209 26,512 2.8 2.8 67.9 81.1 11.8 9.9 1.4 1.3 14.7 16.0 - -

IDBI Bank Buy 87 117 11,154 8,004 9,589 1.9 2.0 19.9 23.9 4.4 3.7 0.6 0.5 13.8 14.9 - -Indian Bank Accumulate 179 197 7,693 6,312 7,119 3.4 3.3 41.1 43.7 4.4 4.1 0.8 0.7 18.2 16.9 - -

IOB Buy 79 96 6,328 7,354 8,283 2.5 2.4 16.3 21.7 4.9 3.7 0.6 0.5 11.5 13.9 - -

J & K Bank Accumulate 905 952 4,385 2,535 2,861 3.5 3.4 176.3 184.4 5.1 4.9 0.9 0.8 19.3 17.6 - -

LIC Housing Finance Buy 234 286 11,791 2,108 2,607 2.6 2.6 24.5 30.6 9.6 7.6 1.8 1.5 20.1 21.4 - -

Oriental Bank Buy 220 274 6,406 6,431 7,315 2.7 2.6 54.4 63.8 4.0 3.4 0.6 0.5 13.6 14.3 - -

Punjab Natl.Bank Buy 721 1,015 24,443 19,893 23,653 3.1 3.2 153.4 175.2 4.7 4.1 0.8 0.7 18.3 18.1 - -

South Ind.Bank Neutral 22 - 2,491 1,399 1,596 2.6 2.5 3.5 3.8 6.3 5.8 1.1 1.0 18.7 17.5 - -

St Bk of India Buy 1,939 2,486 130,082 68,925 80,565 3.7 3.7 236.6 282.7 8.2 6.9 1.4 1.2 18.6 19.3 - -

Syndicate Bank Buy 86 131 5,183 7,133 8,255 3.0 3.0 25.9 30.0 3.3 2.9 0.5 0.5 16.9 17.1 - -

UCO Bank Neutral 66 - 4,404 5,623 6,380 2.4 2.4 16.9 17.9 3.9 3.7 0.7 0.7 16.5 15.4 - -

Union Bank Buy 201 276 11,058 10,215 11,854 2.9 2.8 42.7 50.3 4.7 4.0 0.8 0.7 17.0 17.5 - -

United Bank Buy 56 78 2,023 3,551 4,128 2.7 2.8 18.8 22.6 3.0 2.5 0.5 0.4 15.5 16.5 - -

Vijaya Bank Neutral 52 - 2,557 2,668 3,001 2.2 2.2 10.6 12.2 4.9 4.2 0.7 0.6 13.3 13.8 - -

Yes Bank Buy 322 450 11,380 3,209 4,144 2.7 2.8 33.9 41.5 9.5 7.8 2.0 1.6 23.1 23.3 - -

FMCG

Asian Paints Neutral 3,683 - 35,328 11,423 13,309 16.3 16.3 125.3 148.4 29.4 24.8 10.0 7.8 38.0 35.4 3.1 2.6Britannia Buy 529 650 6,321 5,906 6,856 6.9 7.0 22.3 28.3 23.7 18.7 9.7 7.2 45.2 44.1 1.1 0.9

Colgate Neutral 1,200 - 16,322 3,007 3,417 21.1 22.1 37.7 42.6 31.8 28.2 37.9 30.6 129.4 120.1 5.4 4.7

Dabur India Neutral 105 - 18,240 5,878 6,799 16.8 17.0 4.2 4.9 25.3 21.3 9.2 7.5 39.3 42.0 3.1 2.7

GlaxoSmith Con* Neutral 2,659 - 11,183 3,124 3,663 17.1 11.6 103.0 123.3 25.8 21.6 8.0 6.4 34.0 32.9 3.3 2.7

Godrej Consumer Neutral 565 - 19,225 5,973 7,000 18.4 18.6 22.8 27.2 24.8 20.8 6.8 5.5 31.3 38.4 3.3 2.8

HUL Neutral 423 - 91,400 25,350 29,309 14.3 14.4 14.1 16.4 29.9 25.8 22.4 17.5 82.7 76.2 3.5 3.0

ITC Accumulate 233 252 181,857 28,955 33,595 35.9 35.7 9.2 10.5 25.4 22.2 8.1 6.7 34.8 33.1 6.1 5.2


May 23, 2012

Market Outlook

Stock Watch


10/13



FMCG

Marico Neutral 169 - 10,385 4,667 5,427 12.8 12.9 6.6 8.1 25.4 20.8 6.8 5.3 30.0 28.8 2.3 1.9

Nestle* Neutral 4,682 - 45,142 8,731 10,539 21.0 21.4 119.3 147.9 39.3 31.7 24.1 16.4 73.0 61.6 5.2 4.2

Tata Global Buy 107 136 6,617 7,011 7,712 9.7 10.0 6.0 7.1 18.0 15.0 1.6 1.6 8.9 10.2 0.8 0.8

IT

HCL Tech Buy 488 560 33,811 22,792 25,743 17.4 17.4 37.8 43.0 12.9 11.3 2.9 2.4 22.3 21.3 1.4 1.2

Hexaware Accumulate 125 128 3,694 1,821 2,105 19.0 18.6 9.8 10.7 12.7 11.7 2.9 2.6 23.7 22.5 1.6 1.4

Infosys Buy 2,342 2,792 134,502 37,615 42,491 31.1 30.6 158.5 174.5 14.8 13.4 3.3 2.8 22.5 20.8 2.9 2.4Infotech Enterprises Accumulate 162 177 1,808 1,758 1,972 17.0 16.6 16.8 18.6 9.7 8.7 1.3 1.2 13.6 13.2 0.7 0.5

KPIT Cummins Reduce 127 114 2,261 2,028 2,239 15.0 14.8 9.0 11.4 14.1 11.1 2.6 2.1 19.3 18.7 1.1 0.9

Mahindra Satyam Buy 72 89 8,438 7,142 8,042 15.4 15.0 7.7 8.3 9.4 8.7 1.3 1.1 13.8 13.0 0.8 0.6

Mindtree Neutral 610 - 2,475 2,172 2,450 16.1 15.5 53.9 58.5 11.3 10.4 2.1 1.8 18.9 17.0 0.9 0.8

Mphasis Accumulate 377 433 7,919 5,904 6,320 18.3 17.9 38.7 41.2 9.7 9.2 1.5 1.3 14.9 13.7 0.9 0.7

NIIT Buy 40 52 654 1,162 1,304 14.8 15.1 7.1 8.8 5.6 4.5 0.9 0.8 16.7 18.4 0.4 0.3

Persistent Neutral 350 - 1,400 1,109 1,224 23.3 22.4 37.2 40.1 9.4 8.7 1.5 1.3 15.4 14.5 0.9 0.8

TCS Accumulate 1,223 1,276 239,368 57,189 66,329 29.3 28.7 63.2 70.9 19.4 17.3 5.9 4.8 30.5 27.7 3.9 3.3

Tech Mahindra Buy 617 750 7,873 6,030 6,511 16.3 15.7 81.1 87.0 7.6 7.1 1.5 1.3 20.1 18.0 1.3 1.0

Wipro Accumulate 382 430 93,816 41,918 46,879 19.4 19.9 25.1 28.7 15.2 13.3 2.8 2.4 18.6 18.3 1.9 1.6

Media

D B Corp Buy 200 269 3,660 1,652 1,863 25.7 26.3 13.5 16.1 14.8 12.4 3.3 2.8 24.1 24.4 2.1 1.8

HT Media Buy 113 170 2,645 2,255 2,555 17.8 18.3 10.0 12.0 11.3 9.4 1.6 1.3 14.7 15.4 0.9 0.8

Jagran Prakashan Buy 82 137 2,598 1,499 1,642 27.4 28.8 7.6 9.1 10.8 9.1 3.6 3.2 34.6 37.7 1.7 1.6

PVR Neutral 148 - 385 625 732 17.4 16.9 12.4 15.8 11.9 9.4 1.9 2.0 8.5 9.9 0.8 0.6

Sun TV Network Neutral 253 - 9,966 2,135 2,458 75.2 74.4 20.9 24.0 12.1 10.5 2.8 2.4 26.0 25.1 3.7 3.0Metals & Mining

Bhushan Steel Neutral 437 - 9,281 9,232 13,557 30.8 31.1 48.0 58.6 9.1 7.5 1.2 1.0 14.5 7.5 3.1 2.2

Coal India Accumulate 306 351 193,218 65,654 71,756 26.8 27.3 24.0 26.3 12.7 11.6 3.5 2.9 30.4 27.0 2.0 1.7

Electrosteel Castings Buy 19 27 652 1,984 2,074 10.6 12.0 2.7 3.3 7.0 5.7 0.3 0.1 5.2 6.2 0.4 0.4

Hind. Zinc Buy 115 139 48,486 13,043 14,223 51.8 52.8 14.8 16.6 7.8 6.9 1.5 1.3 21.2 19.9 2.0 1.5

Hindalco Neutral 107 - 20,486 84,652 88,766 9.6 10.5 17.0 18.9 6.3 5.7 0.6 0.5 9.7 9.8 0.5 0.5

JSW Steel Accumulate 594 663 13,250 39,592 44,910 18.0 17.7 74.7 88.9 8.0 6.7 0.8 0.7 10.7 11.6 0.7 0.7

MOIL Neutral 257 - 4,323 979 1,061 45.7 46.8 24.5 26.6 10.5 9.7 1.6 1.5 16.1 15.8 2.2 1.9

Monnet Ispat Buy 418 593 2,691 3,115 3,748 22.1 25.1 59.1 66.8 7.1 6.3 1.0 0.9 15.6 15.3 1.6 1.2


May 23, 2012

Market Outlook

Stock Watch


11/13



Metals & Mining

Nalco Sell 60 51 15,412 8,276 8,578 12.7 16.4 2.5 3.5 23.6 17.1 1.3 1.3 5.6 7.5 1.4 1.4

NMDC Accumulate 166 185 65,933 11,726 12,890 77.8 78.4 18.6 20.6 8.9 8.1 2.1 1.8 26.1 23.8 3.5 3.0

SAIL Accumulate 92 102 37,960 52,461 62,935 18.0 18.8 13.2 14.5 7.0 6.3 0.8 0.7 12.4 12.3 1.1 1.0

Sesa Goa Accumulate 184 206 16,031 9,067 9,316 35.7 35.5 44.5 44.3 4.2 4.2 0.9 0.8 23.5 19.5 0.5 0.1

Sterlite Inds Buy 96 123 32,195 45,805 49,029 21.2 23.5 16.5 19.1 5.8 5.0 0.6 0.6 11.5 12.0 0.3 0.2

Tata Steel Buy 399 499 38,785 143,088 148,011 10.9 12.1 53.9 66.0 7.4 6.1 0.9 0.8 12.2 13.4 0.6 0.6

Oil & GasCairn India Accumulate 325 372 61,916 15,513 16,074 74.0 69.7 51.1 48.6 6.4 6.7 1.1 0.9 18.3 14.8 2.8 2.1

GAIL Buy 314 392 39,824 50,472 55,503 15.3 15.6 35.4 37.0 8.9 8.5 1.6 1.4 18.7 17.0 0.5 0.4

ONGC Buy 245 319 209,567 148,157 150,563 37.6 39.5 31.0 33.6 7.9 7.3 1.4 1.3 18.8 18.1 1.1 0.9

Reliance Industries Buy 691 872 226,337 325,734 328,669 10.9 11.7 65.8 70.1 10.5 9.9 1.1 1.0 11.9 11.5 0.7 0.7

Pharmaceuticals

Alembic Pharma Buy 49 91 925 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 110 175 3,207 5,243 5,767 14.6 14.6 13.8 14.7 8.0 7.5 0.9 0.4 11.4 10.9 0.9 0.8

Aventis* Neutral 2,094 - 4,822 1,482 1,682 15.5 15.5 95.0 104.0 22.0 20.1 3.9 3.0 18.6 17.0 3.1 2.6

Cadila Healthcare Buy 743 953 15,218 6,196 7,443 18.5 19.5 43.3 50.8 17.2 14.6 4.4 3.5 25.4 24.8 2.5 2.0

Cipla Buy 312 379 25,047 7,687 8,804 21.4 21.4 16.5 18.9 18.9 16.5 2.9 2.6 16.7 16.8 3.2 2.8

Dr Reddy's Neutral 1,661 - 28,145 10,696 11,662 20.7 21.0 83.7 92.9 19.8 17.9 4.1 3.5 22.4 21.0 2.7 2.5

Dishman Pharma Buy 46 92 368 1,280 1,536 17.8 17.8 9.2 11.3 5.0 4.0 0.4 0.3 7.7 8.5 1.0 0.8

GSK Pharma* Neutral 1,990 - 16,859 2,651 2,993 31.7 31.2 76.0 82.4 26.2 24.2 7.5 6.6 30.8 29.0 5.6 4.8

Indoco Remedies Buy 60 665 553 685 837 15.2 15.2 55.5 66.5 1.1 0.9 0.2 0.1 16.4 16.9 1.0 0.9

Ipca labs Buy 338 443 4,257 2,907 3,541 21.5 21.5 32.4 40.6 10.4 8.3 2.6 2.1 27.8 27.7 1.6 1.3

Lupin Buy 545 646 24,343 8,426 10,082 19.7 20.0 29.7 32.4 18.4 16.8 4.8 3.8 27.0 25.2 2.8 2.2Orchid Chemicals Buy 124 178 873 2,117 2,434 17.7 17.7 16.7 22.2 7.4 5.6 0.7 0.6 9.5 11.5 1.1 0.9

Ranbaxy* Neutral 493 - 20,804 12,046 11,980 18.0 15.8 35.7 29.8 13.8 16.5 5.2 4.2 43.1 28.1 1.7 1.7

Sun Pharma Accumulate 576 634 59,302 9,272 11,080 40.3 36.3 26.7 28.8 21.6 20.0 4.4 3.7 22.1 20.8 5.6 4.6

Power

CESC Buy 269 342 3,358 5,084 5,512 24.2 23.8 45.2 48.5 6.0 5.5 0.6 0.6 11.2 10.9 1.1 1.1

GIPCL Buy 61 98 916 1,557 1,573 28.7 27.5 10.4 10.2 5.8 5.9 0.6 0.6 10.5 9.6 1.0 0.9

NTPC Buy 142 201 116,715 74,766 86,549 23.1 23.4 12.4 14.1 11.4 10.1 1.4 1.3 13.0 13.5 2.3 2.1

Real Estate

Anant Raj Buy 50 78 1,484 657 875 52.0 56.1 8.4 12.7 6.0 4.0 0.4 0.3 6.3 8.9 3.6 2.7

DLF Neutral 186 - 31,581 9,878 12,033 44.7 46.1 9.6 13.4 19.4 13.9 1.2 1.2 6.4 8.7 5.8 4.7


May 23, 2012

Market Outlook

Stock Watch


12/13



Real Estate

HDIL Buy 63 115 2,625 2,441 3,344 53.0 46.7 21.4 25.4 2.9 2.5 0.2 0.2 8.4 9.1 2.9 2.2

Telecom

Bharti Airtel Neutral 295 - 111,875 80,967 88,684 33.1 33.4 17.9 22.0 16.5 13.4 1.9 1.7 11.5 12.5 2.1 1.7

Idea Cellular Neutral 78 - 25,697 22,558 25,326 26.4 27.5 3.2 4.7 24.1 16.4 1.8 1.6 7.5 10.0 1.7 1.5

Rcom Neutral 64 - 13,282 21,899 23,740 32.7 32.7 4.2 6.7 15.2 9.6 0.3 0.3 2.1 3.2 2.0 1.7

zOthers

Bajaj Electrical Accumulate 230 245 2,288 3,670 4,384 8.5 8.5 18.3 22.3 12.5 10.3 2.8 2.3 23.9 24.3 0.6 0.5CRISIL Neutral 1,063 - 7,458 982 1,136 34.3 34.3 34.3 40.0 31.0 26.6 14.0 11.2 50.9 46.9 7.1 6.0

Finolex Cables Buy 37 61 566 2,334 2,687 8.8 9.3 7.6 10.2 4.8 3.6 0.6 0.5 13.7 16.1 0.2 0.1

Graphite India Buy 90 124 1,761 2,158 2,406 18.1 18.9 12.4 14.0 7.3 6.4 1.0 0.9 14.0 14.3 1.0 0.8

Greenply Buy 210 298 507 1,800 2,047 11.1 11.6 34.1 49.6 6.2 4.2 1.1 0.9 20.2 23.7 0.6 0.4

Page Industries Neutral 3,045 - 3,396 935 1,168 19.6 19.6 99.7 122.2 30.5 24.9 17.7 14.2 64.2 63.1 3.7 2.9

Sintex Buy 52 129 1,414 4,751 5,189 16.3 16.6 13.6 15.8 3.8 3.3 0.5 0.4 13.1 13.4 0.7 0.5

Siyaram Silk Mills Buy 268 439 251 1,042 1,173 12.4 12.5 66.3 78.5 4.1 3.4 0.8 0.7 21.1 20.8 0.5 0.4

SpiceJet Neutral 29 - 1,424 5,384 6,443 (1.0) 4.1 (3.4) 2.4 (8.6) 12.3 (11.9) 25.1 - - 0.5 0.4

Taj GVK Buy 59 108 370 300 319 35.8 36.2 7.9 9.1 7.5 6.5 1.0 0.9 13.9 14.4 1.5 1.3

Goodyear Accumulate 334 372 769 1,571 1,753 7.2 8.6 29.8 42.4 11.2 7.9 2.1 1.7 20.2 24.3 0.3 0.2

HEG Buy 208 242 831 1,746 1,946 16.5 17.7 22.5 32.9 9.2 6.3 0.9 0.9 10.4 14.2 1.1 1.0

Hitachi Buy 122 186 281 995 1,142 6.4 7.4 12.8 18.6 9.6 6.6 1.4 1.2 15.7 19.5 0.4 0.3

Honeywell Automation Neutral 2,501 - 2,211 1,798 2,071 8.9 9.1 133.4 160.6 18.8 15.6 3.0 2.5 17.2 17.6 1.1 0.9

Ineos ABS Neutral 754 - 1,326 976 1,113 11.2 11.5 41.5 46.0 18.2 16.4 3.0 2.6 18.2 17.0 1.2 1.0

ITD Cementation Reduce 212 196 244 1,535 1,811 10.6 10.7 26.2 39.6 8.1 5.4 0.6 0.5 7.6 10.6 0.6 0.6

MRF Buy 10,278 13,106 4,359 12,390 14,400 10.4 11.3 1,334.6 1,638.2 7.7 6.3 1.5 1.2 16.5 17.4 0.6 0.5Relaxo Neutral 415 - 498 961 1,129 11.8 12.3 46.6 59.9 8.9 6.9 2.3 1.7 28.7 28.0 0.7 0.6

Tata Sponge Buy 268 420 412 757 875 19.0 19.1 63.5 72.9 4.2 3.7 0.6 0.6 16.1 16.1 0.1 -

TVS Srichakra Buy 317 462 242 1,612 1,827 9.5 9.8 72.3 92.5 4.4 3.4 1.3 1.0 33.1 32.1 0.4 0.3

Vesuvius India Neutral 376 - 763 621 711 15.3 15.5 27.3 32.4 13.8 11.6 2.2 1.9 17.2 17.6 1.0 0.9

Abbott India Accumulate 1,441 1,628 3,062 1,661 1,918 9.5 12.0 55.4 90.4 26.0 15.9 5.0 4.0 20.3 27.8 1.7 1.4

Cera Sanitaryware Ltd Buy 250 370 316 405 467 17.2 17.4 28.9 32.0 8.6 7.8 1.8 1.5 23.4 21.1 0.9 0.9

Jyothy Laboratories Buy 194 248 1,563 1,359 1,627 10.3 12.9 13.9 20.6 13.9 9.4 4.6 3.4 35.8 41.3 1.6 1.3

Force Motors Buy 458 678 597 2,346 2,753 6.7 7.0 50.9 61.9 9.0 7.4 0.5 0.5 5.4 6.2 0.2 0.2

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on May 22, 2012


May 23, 2012

Market Outlook

Stock Watch


13/13

May 23, 2012Market Outlook

Market Outlook 230512

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Transcript of Market Outlook 230512