Market Outlook, 26.02.13

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Market OutlookFebruary 26, 2013

www.angelbroking.com


Dealers Diary

The Indian market is expected to open in the red following the negative opening in

SGX Nifty and most other Asian markets after signs of an inconclusive general

election in Italy sparked worries that another chapter in Europes debt crisis couldbe opening.

The US market showed a substantial downturn on Monday on the back of

uncertainty about the outcome of elections in Italy. Moreover, uncertainty about

whether lawmakers in Washington will be able to reach an agreement to avoid the

automatic government spending cuts, due to go into effect at the end of the month,

also weighed on the markets. European stocks also gained ground as investors

awaited Italian poll results.

Meanwhile, Indian shares ended a volatile session largely unchanged on Monday

despite firm global cues. The underlying sentiment remained cautious as investors

await the upcoming Railway Budget and Union Budget this week for directionalcues.

Markets Today

The trend deciding level for the day is 19,327 / 5,853 levels. If NIFTY trades above

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

up to 19,416 19,500 / 5,880 5,906 levels. However, if NIFTY trades below

19,327 / 5,853 levels for the first half-an-hour of trade then it may correct up to

19,243 19,154 / 5,827 5,799 levels.

Indices S2 S1 PIVOT R1 R2SENSEX 19,154 19,243 19,327 19,416 19,500NIFTY 5,799 5,827 5,853 5,880 5,906

News Analysis Ranbaxy restarts generic Lipitor production for US market Sadbhav Engineering emerges successful bidder for Northern Coalfields

project

4QCY2012 Result Preview RanbaxyRefer detailed news analysis on the following page

Net Inflows (February 24, 2013)

` cr Purch Sales Net MTD YTDFII 2,903 2,691 212 22,205 44,435

MFs 392 497 (105) (1,528) (6,241)

FII Derivatives (February 25, 2013)

` cr Purch Sales Net Open InterestIndex Futures 3,820 4,251 (432) 12,149

Stock Futures 5,952 5,660 292 30,637

Gainers / Losers

Gainers LosersCompany Price (`) chg (%) Company Price (`) chg (%)Ranbaxy Lab 433 4.8 Core Projects 111 (62.4)

Sun TV Network 427 3.9 Opto Circuits 53 (10.3)

SJVN 22 3.4 Berger Paints 188 (6.9)

Bajaj Finserv 851 3.4 Astrazeneca Phar 1,001 (6.1)

Infosys 2,917 2.8 MMTC 514 (5.0)

Domestic Indices Chg (%) (Pts) (Close)BSE Sensex 0.1 14.7 19,332

Nifty 0.1 4.5 5,855

MID CAP (1.2) (79.5) 6,530

SMALL CAP (1.4) (89.1) 6,476

BSE HC 0.0 1.8 8,022

BSE PSU (1.0) (75.1) 7,153

BANKEX (0.3) (36.5) 13,819

AUTO 0.8 84.0 10,785

METAL (1.1) (103.1) 9,458

OIL & GAS (1.1) (95.2) 8,965

BSE IT 1.9 122.7 6,728

Global Indices Chg (%) (Pts) (Close)Dow Jones (1.5) (216.4) 13,784NASDAQ (1.4) (45.6) 3,116

FTSE 0.3 19.7 6,355

Nikkei 2.4 276.6 11,663

Hang Seng 0.2 37.6 22,820

Straits Times 0.0 0.6 3,289

Shanghai Com 0.5 11.7 2,326

Indian ADR Chg (%) (Pts) (Close)INFY 2.1 1.1 $54.6

WIT 0.2 0.0 $9.5IBN (1.1) (0.5) $41.7

HDB (1.1) (0.4) $38.7

Advances / Declines BSE NSEAdvances 1,011 423

Declines 1,802 1,083

Unchanged 131 65

Volumes (` cr)BSE 1,931

NSE 9,643

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Ranbaxy restarts generic Lipitor production for US market

Ranbaxy Labs announced that it will be able to enter the Atrovastain (Lipitor)

market soon, as its product has received a fresh go ahead from the USFDA. The

company had initiated a recall from the US market after certain lots were

contaminated with tiny glass particles. The recall was limited to the US market andthe 10, 20 and 40mg strengths of the drug. The company has received approval

to resume manufacturing of its generic product at the Ohms Labs facility in New

Jersey. Ranbaxy had launched generic Lipitor in the US market in December 2011

after the USFDA gave final approval to market its generic version of Lipitor

produced at Ohms Labs.

In April 2012, Ranbaxy commenced shipping the product from the new Mohali

facility. The product recall initiated in November 2012 caused Ranbaxys Lipitor

market share to fall from a peak of 45% to less than 5%. However, now after the

price erosion of the product post exclusivity, we believe that Lipitor will not make

any difference to the overall numbers of the company and the improvement in thecore business profitability of the company is crucial for the stock outperformance.

So we maintain our Neutral rating on the stock.

Sadbhav Engineering emerges successful bidder for Northern

Coalfields project

Sadbhav Engineering has been declared the successful bidder by Northern

Coalfields, Singrauli for an estimated project cost of ~`697cr. The scope of work

involves excavation of overburden of first dig by hiring of equipment such as

excavators, dumpers/tippers, drills, dozers, graders and water sprinklers forcomposite work consisting of blast hole drilling, excavation, loading,

transportation of broker rocks/soil/earth, unloading/dumping, spreading, dozing,

water sprinkling and grading etc. by mechanical means as per instruction of

engineer in charge at specified places of Amlohri OCP of NCL. The total quantity

for the excavation of over burden is 100 million BCM. We continue to maintainour Buy rating on the stock with a target price of `157.

4QCY2012 Result Preview

Ranbaxy (CMP: `433/ TP: -/ Upside: -)

For 4QCY2012, Ranbaxy is expected to post a decline of 32.5% with sales at

`2,525cr. Its OPM is expected to be at 9.3% vs 21.6% in 4QCY2011.

However, the net profit is likely to come in at `274cr vs `428cr during the last

corresponding period. We maintain our Neutral view on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)CY2013E 12,046 16.0 1,572 37.3 45.3 11.6 4.5 9.7 1.5

CY2014E 11,980 15.8 1,356 32.1 29.7 13.5 3.6 9.4 1.5

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Quarterly Bloomberg Brokers Consensus Estimate

Ranbaxy Consolidated (26/02/2013)Particulars (` cr) 4QCY12E 4QCY11 y-o-y (%) 3QCY12 q-o-q (%)Net sales 2,673 3,738 (28) 2,651 1

EBITDA 380 860 (56) 349 9

EBITDA margin (%) 14.2 23.0 13.2

Net profit 243 (2,980) (108) 757 (68)

Economic and Political News

Govt. fails to find takers for 1,800-MHz spectrum, again S&P sees GDP inching up to 6.4% next fiscal India's steel imports grew 17.5% during April-Jan Approval board for SEZs to meet on Mar 15

Corporate News

SC refuses to give Sahara more time to refund `24,000cr to investors Railways sign MoU with BHEL for MEMU coach factory in Rajasthan Kingfisher's domestic, intl. flying slots withdrawn Cairn drills 1st exploration well on Rajasthan block Zydus gets USFDA nod to market ranitidine Hcl injection SKS to decide on applying for banking license in MaySource: Economic Times, Business Standard, Business Line, Financial Express, Mint

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Date Company

February 26, 2013 Ranbaxy

February 27, 2013 Bosch India, Goodyear

February 28, 2013 Mphasis

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Time Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

February 26, 2013 8:30PM US Consumer Confidence S.A./ 1985=100 Feb 58.60 62.00

8:30PM US New home sales Thousands Jan 369.00 380.00February 27, 2013 3:30PM Euro Zone Euro-Zone Consumer Confidence Value Feb F (23.60) (23.60)

3:00PM UK GDP (YoY) % Change 4Q P -- --

February 28, 2013 7:00PM US Initial Jobless claims Thousands Feb 23 362.00 360.00

3:30PM Euro Zone Euro-Zone CPI (YoY) % Jan 2.20 2.00

2:25PM Germany Unemployment change (000's) Thousands Feb (16.00) --

7:00PM US GDP Qoq (Annualised) % Change 4Q S (0.10) 0.50

11:00AM India Qtrly GDP YoY% % Change 4Q 5.30 4.90

March 1, 2013 2:25PM Germany PMI Manufacturing Value Feb F 50.10 50.10

3:00PM UK PMI Manufacturing Value Feb 50.80 51.00

6:30AM China PMI Manufacturing Value Feb 50.40 50.50March 5, 2013 2:25PM Germany PMI Services Value Feb F 54.10 --

March 6, 2013 3:30PM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 4Q P (0.60) --

March 7, 2013 5:30PM UK BOE Announces rates % Ratio Mar 7 0.50 0.50

6:15PM Euro Zone ECB announces interest rates % Mar 7 0.75 --

March 8, 2013 5:29PM China Exports YoY% % Change Feb 25.00 --

7:00PM US Change in Nonfarm payrolls Thousands Feb 157.00 150.00

7:00PM US Unnemployment rate % Feb 7.90 7.90

March 9, 2013 7:00AM China Consumer Price Index (YoY) % Change Feb 2.00 --

11:00AM China Industrial Production (YoY) % Change Feb 10.30 --

March 11, 2013 4:29PM India Imports YoY% % Change Feb 6.10 --

4:29PM India Exports YoY% % Change Feb 0.80 --

March 12, 2013 3:00PM UK Industrial Production (YoY) % Change Jan (1.70) --

March 14, 2013 6:00PM US Producer Price Index (mom) % Change Feb 0.20 --

12:00PM India Monthly Wholesale Prices YoY% % Change Feb 6.62 --

March 15, 2013 6:00PM US Consumer price index (mom) % Change Feb -- --

6:45PM US Industrial Production % Feb (0.10) --

March 19, 2013 6:00PM US Housing Starts Thousands Feb 890.00 --

6:00PM US Building permits Thousands Feb 925.00 --

3:00PM UK CPI (YoY) % Change Feb 2.70 --

11:00AM India RBI Repo rate % Mar 19 7.75 --

11:00AM India RBI Cash Reserve ratio % Mar 19 4.00 --

11:00AM India RBI Reverse Repo rate % Mar 19 6.75 --


February 26, 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


Exhibit 6:Key policy rates

Source: RBI, Angel Research

3.5

5.7

9.0

7.5

11.2

8.5

7.68.2

9.2

8.0

6.76.1

5.3 5.5 5.3

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

(%)

1.0

4.3

2.5 2.0

8.3

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

Jan-1

2

Fe

b-1

2

Mar-

12

Apr-

12

May-1

2

Jun-1

2

Ju

l-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

(%)

7.6 7.7 7.5 7.6 7.6 7.58.0 8.1

7.3 7.2 7.26.6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Fe

b-1

2

Mar-

12

Apr-

12

May-1

2

Jun-1

2

Ju

l-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

(%)

48.0

50.0

52.0

54.0

56.0

58.0

60.0

Jan-1

2

Feb-1

2

Mar-12

Apr-12

May-1

2

Jun-1

2

Jul-12

Aug-1

2

Sep-1

2

Oct-12

Nov-1

2

Dec-1

2

Jan-1

3

Mfg. PMI Services PMI

(30.0)

(15.0)

0.0

15.0

30.0

Fe

b-1

2

Mar-

12

Apr-

12

May-1

2

Jun-1

2

Ju

l-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Exports yoy growth Imports yoy growth(%)

7.75

6.75

4.00

3.50

4.50

5.50

6.50

7.50

8.50

9.50

Mar-

12

Apr-

12

May-1

2

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

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 ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E

Agri / Agri Chemical

Rallis Neutral 122 - 2,377 1,466 1,686 14.8 14.8 7.0 8.1 17.5 15.1 3.7 3.2 22.6 22.5 1.7 1.5

United Phosphorus Buy 123 170 5,464 8,421 9,263 16.5 16.5 15.0 17.0 8.2 7.3 1.2 1.1 15.6 15.5 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Buy 270 323 4,611 2,983 3,477 16.1 16.1 18.5 21.6 14.6 12.5 4.2 3.2 32.9 29.1 1.5 1.3

Apollo Tyres Accumulate 89 97 4,473 13,066 14,503 11.5 11.8 13.0 14.5 6.8 6.1 1.3 1.1 21.0 19.4 0.5 0.5

Ashok Leyland Buy 23 28 6,199 12,910 14,836 8.8 9.6 1.5 2.2 15.7 10.5 2.1 1.9 9.3 13.4 0.6 0.5

Automotive Axle# Neutral 334 - 505 934 1,103 10.2 10.7 24.5 34.3 13.6 9.7 1.7 1.6 13.2 16.9 0.6 0.5Bajaj Auto Neutral 2,006 - 58,051 20,775 23,889 18.5 19.0 107.6 126.4 18.7 15.9 7.7 6.1 45.8 42.8 2.4 2.0

Bharat Forge Accumulate 218 242 5,084 5,973 6,707 14.4 15.2 13.4 18.6 16.4 11.8 2.1 1.9 13.6 16.9 1.0 0.8

Bosch India* Accumulate 8,915 9,570 27,991 9,973 11,320 17.8 18.0 396.2 455.7 22.5 19.6 4.2 3.6 18.8 18.2 2.4 2.1

CEAT Buy 97 163 334 4,822 5,403 8.2 8.3 29.8 40.8 3.3 2.4 0.4 0.4 14.5 17.0 0.3 0.2

Exide Industries Neutral 125 - 10,642 6,016 7,026 12.7 14.4 5.8 7.8 21.4 16.0 3.2 2.7 15.4 18.2 1.5 1.2

FAG Bearings* Accumulate 1,415 1,569 2,352 1,619 1,879 16.0 16.6 108.6 130.7 13.0 10.8 2.3 1.9 18.8 19.1 1.2 1.0

Hero Motocorp Accumulate 1,703 1,923 34,014 23,990 27,038 13.8 14.6 105.8 120.2 16.1 14.2 6.5 5.3 44.3 41.0 1.1 1.0

JK Tyre Buy 109 165 445 7,169 7,929 6.9 7.1 40.4 41.3 2.7 2.6 0.5 0.4 20.5 18.0 0.4 0.3

Mahindra and Mahindra Accumulate 895 1,019 54,957 40,060 46,301 11.5 11.7 55.3 64.3 16.2 13.9 3.7 3.0 24.5 23.8 1.1 0.9

Maruti Accumulate 1,442 1,563 41,674 43,381 52,411 7.5 8.9 65.6 97.7 22.0 14.8 2.5 2.2 11.8 15.6 0.8 0.6

Motherson Sumi Accumulate 193 209 11,343 25,769 29,010 7.1 7.5 10.2 13.1 19.0 14.8 4.8 3.7 28.1 28.3 0.6 0.5

Subros Buy 26 35 156 1,296 1,476 9.8 9.9 3.4 5.0 7.7 5.2 0.5 0.5 7.2 10.2 0.4 0.4

Tata Motors Accumulate 299 326 79,713 184,201 209,642 12.4 13.5 28.0 36.3 10.7 8.2 2.3 1.9 24.6 25.4 0.5 0.4

TVS Motor Buy 41 47 1,938 7,019 7,827 6.0 6.3 4.3 5.3 9.6 7.7 1.5 1.3 16.4 18.0 0.2 0.2

Capital Goods

ABB* Sell 587 487 12,443 8,073 9,052 5.5 7.2 11.3 17.4 52.1 33.8 4.5 4.1 8.9 12.8 1.5 1.4BGR Energy Neutral 216 - 1,559 3,412 4,104 13.0 11.6 24.6 26.2 8.8 8.3 1.3 1.1 30.7 25.7 0.8 0.7

BHEL Neutral 208 - 50,800 47,801 43,757 18.0 17.1 24.1 20.8 8.6 10.0 2.6 2.2 32.9 23.6 0.9 1.0

Blue Star Buy 172 238 1,548 2,748 2,896 4.4 5.6 6.8 9.3 25.4 18.5 3.5 3.0 14.5 17.6 0.7 0.6

Crompton Greaves Buy 93 129 5,975 12,136 13,790 3.8 6.3 3.3 6.9 28.2 13.6 1.6 1.5 5.8 11.5 0.5 0.5

Jyoti Structures Buy 35 49 290 2,802 3,074 9.5 9.8 7.7 10.9 4.6 3.2 0.4 0.4 9.6 12.1 0.3 0.3

KEC International Buy 53 75 1,363 6,909 7,723 6.2 7.2 5.4 8.4 9.9 6.3 1.2 1.0 17.0 22.8 0.3 0.3

LMW Neutral 2,050 - 2,310 2,369 2,727 11.7 11.7 143.4 166.0 14.3 12.4 2.4 2.2 17.4 18.4 0.5 0.4

Thermax Neutral 589 - 7,014 5,529 5,798 9.0 9.6 27.1 30.3 21.7 19.5 3.8 3.3 18.6 18.2 1.1 1.0


Market Outlook

Stock Watch

February 26, 2013

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Cement

ACC Neutral 1,304 - 24,483 11,358 12,366 19.9 19.6 75.1 74.9 17.4 17.4 3.3 3.0 19.4 18.1 1.9 1.7

Ambuja Cements Neutral 200 - 30,813 9,730 11,221 25.6 25.0 10.2 11.3 19.6 17.6 3.5 3.2 18.7 19.0 2.8 2.3

India Cements Neutral 85 - 2,611 4,439 4,789 16.7 17.2 6.8 9.1 12.5 9.4 0.7 0.7 6.0 7.7 1.0 0.9

J K Lakshmi Cements Accumulate 130 143 1,593 2,119 2,478 22.9 22.3 20.3 22.8 6.4 5.7 1.1 0.9 18.0 17.7 0.9 1.1

Madras Cements Neutral 244 - 5,815 3,960 4,270 27.4 27.0 18.6 21.1 13.2 11.6 2.4 2.0 19.7 18.9 2.1 1.8

Shree Cements^ Neutral 4,345 - 15,136 5,678 6,251 29.0 28.6 288.1 334.0 15.1 13.0 4.2 3.3 31.7 28.4 2.1 1.7

UltraTech Cement Neutral 1,911 - 52,399 20,466 23,017 23.3 24.3 100.0 117.1 19.1 16.3 3.5 3.0 19.6 19.5 2.5 2.3Construction

Ashoka Buildcon Buy 202 268 1,066 20,466 23,017 22.5 22.5 24.4 27.0 8.3 7.5 1.0 0.9 12.3 12.1 0.2 0.2

Consolidated Co Neutral 12 - 223 2,262 2,522 5.9 6.3 0.9 1.6 13.2 7.8 0.4 0.4 2.7 4.6 0.4 0.4

IRB Infra Buy 118 164 3,932 3,843 4,212 43.1 43.6 16.8 17.8 7.0 6.6 1.2 1.1 18.3 17.0 3.1 3.4

ITNL Accumulate 200 225 3,890 6,564 7,054 27.2 27.4 26.3 29.0 7.6 6.9 1.2 1.1 17.0 16.3 2.7 2.8

IVRCL Infra Buy 28 35 861 3,773 6,706 6.9 8.4 (3.9) 2.9 (7.2) 9.7 0.4 0.4 (5.4) 4.1 0.9 0.6

Jaiprakash Asso. Buy 68 97 15,090 14,243 16,382 26.2 26.1 3.2 4.3 21.2 15.7 1.1 1.1 5.4 7.0 2.5 2.3

Larsen & Toubro Buy 1,402 1,788 86,246 60,666 69,525 10.6 11.2 71.9 85.0 19.5 16.5 3.0 2.7 14.5 15.2 1.6 1.4

Nagarjuna Const. Accumulate 38 44 984 5,863 6,576 8.1 8.2 3.1 4.1 12.5 9.4 0.4 0.4 3.2 4.2 0.6 0.5

Punj Lloyd Neutral 44 - 1,466 11,892 13,116 10.2 10.2 (0.4) 3.0 (103.6) 14.9 0.5 0.5 3.8 0.5 0.5

Sadbhav Engg. Buy 112 157 1,693 1,642 2,642 9.7 10.1 3.2 7.2 35.0 15.5 2.0 1.8 6.0 12.1 1.3 0.8

Simplex Infra Buy 162 197 802 6,026 7,135 9.1 9.3 14.1 24.6 11.5 6.6 0.6 0.6 5.6 9.2 0.5 0.5

Unity Infra Buy 34 59 252 2,180 2,455 13.7 13.4 13.3 15.0 2.6 2.3 0.3 0.3 12.5 12.5 0.5 0.5

Financials

Allahabad Bank Buy 146 183 7,285 6,509 7,264 2.7 2.8 28.2 33.5 5.2 4.4 0.7 0.6 13.8 14.7 - -

Andhra Bank Neutral 98 - 5,464 4,795 5,475 3.0 3.0 21.8 21.9 4.5 4.5 0.8 0.7 15.4 13.8 - -Axis Bank Buy 1,405 1,753 65,596 15,959 18,660 3.2 3.2 119.2 139.0 11.8 10.1 2.2 1.9 20.3 20.1 - -

Bank of Baroda Buy 731 935 30,039 14,889 17,393 2.5 2.6 108.2 134.0 6.8 5.5 1.0 0.9 15.3 16.7 - -

Bank of India Accumulate 339 380 19,440 12,793 14,823 2.3 2.4 49.5 65.1 6.9 5.2 1.0 0.9 13.6 16.0 - -

Bank of Maharashtra Accumulate 54 58 3,190 3,720 4,268 2.9 2.8 10.9 13.0 5.0 4.2 0.8 0.7 16.2 16.9 - -

Canara Bank Buy 434 517 19,215 10,783 12,000 2.1 2.3 64.8 82.2 6.7 5.3 0.9 0.8 13.2 15.0 - -

Central Bank Neutral 74 - 5,462 7,158 8,217 2.4 2.6 13.1 20.1 5.7 3.7 0.8 0.7 10.3 14.3 - -

Corporation Bank Buy 404 517 5,980 4,919 5,634 2.1 2.2 96.7 99.9 4.2 4.0 0.7 0.6 16.3 14.9 - -

Dena Bank Buy 98 124 3,431 3,090 3,462 2.7 2.7 25.6 24.6 3.8 4.0 0.7 0.6 19.2 15.9 - -


Market Outlook

Stock Watch

February 26, 2013

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Financials

Federal Bank Accumulate 496 557 8,472 2,667 2,920 3.2 3.2 49.1 51.4 10.1 9.6 1.3 1.2 13.9 13.1 - -

HDFC Neutral 802 - 123,830 7,446 8,923 3.5 3.5 32.2 38.5 24.9 20.8 5.1 4.5 35.4 32.6 - -

HDFC Bank Neutral 656 - 155,668 21,724 26,578 4.3 4.3 28.7 36.1 22.9 18.2 4.4 3.7 20.7 22.1 - -

ICICI Bank Buy 1,094 1,404 125,783 22,317 26,217 2.9 3.0 72.0 84.6 15.2 12.9 1.9 1.8 14.9 15.9 - -

IDBI Bank Buy 95 122 12,183 8,196 9,305 1.9 2.1 15.4 22.3 6.2 4.3 0.7 0.6 10.7 14.1 - -

Indian Bank Buy 185 221 7,936 5,716 6,362 3.2 3.2 37.7 41.1 4.9 4.5 0.8 0.7 16.9 16.2 - -

IOB Buy 74 88 5,902 7,231 8,369 2.4 2.5 10.2 20.2 7.2 3.7 0.6 0.5 7.4 13.4 - -J & K Bank Accumulate 1,293 1,406 6,269 2,784 2,932 3.7 3.7 229.2 199.6 5.6 6.5 1.3 1.1 24.6 18.2 - -

LIC Housing Finance Accumulate 249 264 12,546 1,722 2,080 2.2 2.2 19.9 24.6 12.5 10.1 2.0 1.7 16.6 17.9 - -

Oriental Bank Buy 284 336 8,293 6,360 7,004 2.6 2.8 48.1 59.4 5.9 4.8 0.7 0.6 12.1 13.5 - -

Punjab Natl.Bank Buy 844 1,053 28,627 19,202 22,040 3.2 3.4 146.8 167.9 5.8 5.0 1.0 0.9 17.6 17.5 - -

South Ind.Bank Buy 25 34 3,326 1,583 1,789 3.0 2.9 3.5 4.1 7.2 6.1 1.2 1.0 19.1 17.7 - -

St Bk of India Buy 2,221 2,597 149,029 60,594 70,439 3.3 3.3 221.9 257.4 10.0 8.6 1.7 1.4 17.4 17.7 - -

Syndicate Bank Buy 126 153 7,557 6,673 7,644 2.9 3.0 32.0 27.9 3.9 4.5 0.8 0.7 22.0 16.5 - -

UCO Bank Neutral 65 - 4,294 5,388 6,262 2.4 2.6 9.0 14.9 7.2 4.3 0.9 0.8 9.1 13.8 - -

Union Bank Buy 222 286 12,230 10,006 11,558 2.8 2.8 36.4 47.0 6.1 4.7 0.9 0.7 14.6 16.6 - -

United Bank Buy 67 82 2,426 3,549 3,814 2.5 2.7 12.0 21.4 5.6 3.1 0.6 0.5 10.1 16.3 - -

Vijaya Bank Neutral 54 - 2,656 2,342 2,763 1.9 2.1 8.0 10.9 6.7 4.9 0.7 0.6 10.1 12.6 - -

Yes Bank Buy 481 576 17,209 3,364 4,260 2.8 3.0 36.3 42.6 13.2 11.3 3.0 2.4 24.6 23.6 - -

FMCG

Asian Paints Neutral 4,500 - 43,165 11,198 13,319 15.9 15.7 122.1 147.1 36.8 30.6 12.4 9.7 37.7 35.7 3.8 3.2

Britannia Accumulate 497 564 5,945 5,580 6,417 4.8 5.0 18.1 21.7 27.5 22.9 10.0 8.0 38.7 38.7 1.0 0.8

Colgate Neutral 1,304 - 17,738 3,120 3,588 20.3 21.1 38.4 45.1 34.0 29.0 31.6 25.3 104.6 97.0 5.5 4.7

Dabur India Neutral 129 - 22,405 6,196 7,183 16.3 16.8 4.5 5.5 28.5 23.5 11.8 9.2 43.4 44.0 3.6 3.1

GlaxoSmith Con* Neutral 3,903 - 16,416 3,084 3,617 15.3 15.5 101.2 118.3 38.6 33.0 11.7 9.5 33.5 31.9 5.0 4.2

Godrej Consumer Neutral 726 - 24,718 6,386 7,743 15.7 17.0 20.8 27.1 34.9 26.8 7.5 6.1 23.7 26.4 4.1 3.3

HUL Neutral 452 - 97,726 25,350 28,974 13.3 13.5 15.1 17.0 29.9 26.7 23.8 17.0 85.7 74.3 3.7 3.2

ITC Neutral 292 - 230,352 29,148 34,191 35.7 36.1 9.4 11.1 31.2 26.3 10.4 8.6 35.9 35.7 7.6 6.4

Marico Neutral 221 - 14,251 4,747 5,402 13.6 13.6 6.3 7.8 34.9 28.3 7.1 5.8 26.0 22.6 3.1 2.6

Nestle* Neutral 4,642 - 44,753 8,487 10,081 21.2 22.1 113.0 142.5 41.1 32.6 24.6 16.9 70.5 61.6 5.3 4.4


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FMCG

Tata Global Neutral 133 - 8,249 7,272 7,998 9.1 9.5 6.9 8.1 19.5 16.4 2.0 2.0 8.9 9.8 1.1 0.9

IT

HCL Tech^ Neutral 733 - 50,924 25,325 28,476 21.7 20.7 51.0 52.8 14.4 13.9 3.8 3.1 26.8 22.9 1.9 1.6

Hexaware* Buy 87 113 2,579 1,948 2,136 20.9 18.3 10.9 10.1 8.0 8.6 2.1 1.8 27.2 21.0 1.1 0.9

Infosys Neutral 2,917 - 167,516 40,746 44,283 28.9 28.8 162.6 172.9 17.9 16.9 4.2 3.6 23.5 21.3 3.5 3.1

Infotech Enterprises Accumulate 169 184 1,887 1,881 1,987 17.9 17.4 18.5 19.4 9.1 8.7 1.4 1.2 14.8 13.6 0.7 0.5

KPIT Cummins Buy 110 140 2,117 2,234 2,477 15.8 15.2 10.9 12.8 10.1 8.6 2.2 1.7 22.2 20.6 0.9 0.8Mahindra Satyam Accumulate 119 125 13,948 7,711 8,683 21.6 20.3 8.7 11.3 13.6 10.5 3.2 2.5 30.6 23.7 1.4 1.2

Mindtree Neutral 865 - 3,581 2,357 2,580 21.0 19.3 84.4 86.8 10.3 10.0 2.7 2.1 26.8 21.7 1.3 1.0

Mphasis& Accumulate 375 396 7,883 5,531 5,874 17.6 17.5 35.4 37.7 10.6 10.0 1.6 1.3 14.7 13.5 0.9 0.8

NIIT Buy 25 36 405 1,048 1,161 9.1 10.9 4.1 6.2 6.0 4.0 0.6 0.6 10.3 14.1 0.2 0.1

Persistent Neutral 563 - 2,253 1,297 1,433 25.6 24.1 46.5 54.0 12.1 10.4 2.2 1.9 18.5 18.0 1.4 1.2

TCS Neutral 1,471 - 287,966 62,954 70,871 29.0 28.9 71.6 79.1 20.6 18.6 6.8 5.5 33.2 29.7 4.4 3.8

Tech Mahindra Accumulate 1,037 1,105 13,261 6,789 7,609 21.0 19.6 95.8 110.7 10.8 9.4 2.6 2.1 24.3 22.3 2.0 1.7

Wipro Neutral 419 - 103,250 43,514 47,304 20.1 19.4 26.6 27.7 15.8 15.2 3.1 2.7 19.7 17.9 2.0 1.8

Media

D B Corp Buy 234 276 4,293 1,583 1,787 23.9 25.4 11.9 14.5 19.8 16.1 3.9 3.4 21.4 22.4 2.6 2.3

HT Media Accumulate 103 113 2,421 2,061 2,205 14.0 15.1 6.6 7.9 15.5 13.1 1.5 1.4 10.3 11.0 0.8 0.7

Jagran Prakashan Buy 102 125 3,216 1,511 1,698 23.2 23.4 6.4 7.3 15.8 13.9 3.9 3.5 25.9 26.6 2.3 2.0

PVR Neutral 259 - 749 820 1,307 17.3 17.3 11.2 17.8 23.2 14.5 1.1 1.0 9.7 10.8 1.0 0.6

Sun TV Network Neutral 427 - 16,831 1,942 2,237 77.2 75.5 17.6 19.1 24.3 22.4 5.9 5.3 25.8 25.2 8.2 7.0

Metals & Mining

Bhushan Steel Neutral 464 - 10,509 10,746 13,982 30.8 31.1 43.3 55.5 10.7 8.4 1.1 1.0 11.4 12.6 3.1 2.4Coal India Accumulate 326 368 205,756 66,666 70,292 25.7 27.3 24.2 26.6 13.5 12.2 4.0 3.2 33.1 29.1 2.1 1.9

Electrosteel Castings Buy 21 28 709 1,984 2,074 10.6 11.6 1.8 2.6 11.6 7.9 0.4 0.2 3.6 5.1 0.5 0.5

Hind. Zinc Buy 116 149 49,140 12,002 13,759 49.7 50.8 14.7 16.4 7.9 7.1 1.5 1.3 21.1 19.8 2.2 1.5

Hindalco Neutral 107 - 20,448 80,205 88,987 9.0 9.2 13.4 13.8 8.0 7.8 0.6 0.6 7.9 7.6 0.6 0.6

JSW Steel Neutral 767 - 17,118 39,072 40,493 16.5 18.2 82.4 90.3 9.3 8.5 1.0 0.9 10.7 10.7 0.9 0.8

MOIL Neutral 247 - 4,150 933 954 46.9 45.5 25.8 26.1 9.6 9.5 1.5 1.4 16.7 15.1 2.0 1.8

Monnet Ispat Buy 251 318 1,597 2,287 2,883 21.8 21.8 35.3 40.7 7.1 6.2 0.6 0.6 9.6 10.2 1.9 1.4

Nalco Neutral 46 - 11,752 6,630 8,357 11.4 14.5 2.1 3.3 21.5 14.0 1.0 1.0 4.6 6.9 1.1 0.9

NMDC Buy 143 181 56,557 9,674 11,536 75.2 76.6 16.0 18.6 8.9 7.7 1.9 1.6 23.6 23.0 3.7 2.9


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Metals & Mining

SAIL Neutral 75 - 30,917 43,438 56,199 12.0 12.2 6.5 8.5 11.5 8.8 0.7 0.7 6.6 8.2 1.0 0.7

Sesa Goa Accumulate 161 183 13,958 2,412 3,911 30.8 33.1 29.6 31.8 5.4 5.1 0.8 0.7 16.3 15.4 7.2 4.5

Sterlite Inds Accumulate 97 110 32,514 43,185 45,442 23.3 23.7 16.8 17.9 5.8 5.4 0.6 0.6 11.6 11.2 0.7 0.7

Tata Steel Buy 361 443 35,056 142,732 146,575 7.4 9.9 7.2 34.7 50.3 10.4 0.8 0.8 1.6 7.5 0.5 0.5

Sarda Buy 116 148 416 1,442 1,494 19.0 19.1 29.2 31.7 4.0 3.7 0.5 0.4 12.3 12.0 0.6 0.6

Prakash Industries Buy 38 52 510 2,512 2,816 12.4 13.7 10.0 12.6 3.8 3.0 0.2 0.2 7.2 8.4 0.5 0.4

Godawari Power andIspat Accumulate 99 112 314 2,367 2,425 14.2 13.7 33.3 33.5 3.0 3.0 0.4 0.3 12.9 11.2 0.6 0.5

Oil & Gas

Cairn India Buy 308 383 58,804 17,394 17,034 76.4 72.3 60.8 55.1 5.1 5.6 1.0 0.9 21.9 17.0 2.5 2.2

GAIL Neutral 343 - 43,547 48,077 55,815 15.3 15.3 34.9 35.9 9.8 9.6 1.7 1.5 19.0 17.0 0.6 0.5

ONGC Accumulate 318 357 272,236 144,089 158,065 32.8 34.7 28.7 34.4 11.1 9.3 1.8 1.6 17.0 18.3 1.6 1.4

Reliance Industries Neutral 854 - 275,696 362,700 380,031 8.9 8.9 68.1 71.5 12.6 12.0 1.4 1.2 12.4 11.8 0.7 0.7

Gujarat Gas* Neutral 287 - 3,685 3,707 3,850 11.7 12.4 23.7 25.7 12.1 11.2 3.4 2.9 29.6 28.2 0.9 0.8

Indraprastha Gas Neutral 260 - 3,641 3,365 3,700 22.8 23.4 25.3 26.6 10.3 9.8 2.4 2.0 26.0 22.6 1.2 1.1

Petronet LNG Buy 147 179 11,021 32,210 41,362 6.1 5.8 15.4 15.6 9.6 9.4 2.5 2.1 29.1 24.1 0.4 0.3

Gujarat State PetronetLtd.

Neutral 68 - 3,812 1,079 983 91.8 91.9 8.8 7.8 7.7 8.7 1.3 1.2 17.8 14.1 3.3 3.5

Pharmaceuticals

Alembic Pharma Buy 80 95 1,513 1,490 1,714 16.2 17.1 7.4 9.5 10.8 8.5 3.0 2.3 30.7 30.2 1.1 0.9

Aurobindo Pharma Accumulate 173 208 5,050 5,463 6,279 15.0 15.0 12.4 14.0 14.0 12.4 1.8 1.5 18.8 17.8 1.5 1.3

Aventis* Neutral 2,311 - 5,323 1,482 1,682 17.5 16.6 82.9 87.8 27.9 26.3 4.4 3.5 16.3 14.8 3.4 2.9

Cadila Healthcare Accumulate 775 817 15,867 6,148 7,386 15.3 18.0 24.6 39.5 31.5 19.6 5.9 4.8 18.4 25.1 3.0 2.4

Cipla Accumulate 370 419 29,736 8,151 9,130 25.8 24.8 20.2 21.6 18.3 17.2 3.3 2.8 19.4 17.6 3.4 3.0

Dr Reddy's Neutral 1,804 - 30,629 10,696 11,662 20.7 21.0 83.7 92.9 21.6 19.4 4.4 3.7 22.4 20.8 3.2 2.8

Dishman Pharma Buy 78 155 627 1,280 1,536 20.2 20.2 12.1 15.5 6.4 5.0 0.6 0.6 10.0 11.6 1.2 1.0

GSK Pharma* Neutral 2,103 - 17,813 2,651 2,993 31.7 31.2 76.0 82.4 27.7 25.5 8.0 7.1 20.1 26.3 5.9 5.1

Indoco Remedies Buy 66 78 605 642 784 14.2 15.2 5.7 7.8 11.5 8.4 1.4 1.2 12.9 16.4 1.1 1.0

Ipca labs Accumulate 488 559 6,154 2,850 3,474 21.0 21.0 29.9 37.3 16.3 13.1 3.9 3.1 26.7 26.4 2.4 1.9

Lupin Accumulate 610 655 27,293 8,426 10,082 19.7 20.0 26.1 31.1 23.4 19.6 5.4 4.4 25.8 24.7 3.4 2.8

Ranbaxy* Neutral 433 - 18,323 12,046 11,980 16.0 15.8 37.3 32.1 11.6 13.5 4.5 3.6 45.3 29.7 1.5 1.5

Sun Pharma Neutral 821 - 84,854 10,111 12,563 42.6 42.6 28.9 29.8 28.4 27.5 5.8 4.9 22.3 19.2 7.7 6.1

Power

GIPCL Accumulate 72 78 1,088 1,502 1,535 32.1 31.9 11.4 12.5 6.3 5.8 0.7 0.7 7.6 11.9 1.2 1.0


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Power

NTPC Accumulate 150 163 123,600 72,809 81,951 23.4 24.1 12.2 13.6 12.3 11.0 1.5 1.4 12.2 12.5 2.3 2.2

Real Estate

DLF Accumulate 272 288 46,153 7,953 9,699 34.7 37.0 4.4 6.0 62.2 45.5 1.8 1.7 3.1 3.8 7.9 6.2

MLIFE Accumulate 413 446 1,689 786 888 26.3 26.7 31.0 36.3 13.3 11.4 1.3 1.2 10.1 10.8 2.5 2.1

Telecom

Bharti Airtel Accumulate 307 350 116,603 80,521 87,160 30.5 30.5 6.4 10.4 48.0 29.5 2.2 2.1 4.6 7.0 2.3 2.1

Idea Cellular Neutral 114 - 37,700 22,087 23,927 26.6 27.7 2.9 3.9 38.9 29.2 2.7 2.5 6.9 8.4 2.3 2.1Rcom Neutral 69 - 14,293 21,087 22,067 31.8 31.9 2.6 4.0 26.4 17.3 0.4 0.4 1.5 2.2 2.4 2.2

zOthers

Abbott India Buy 1,371 1,590 2,913 1,629 1,886 11.8 13.3 60.8 79.5 22.6 17.2 4.6 3.9 22.0 24.4 1.6 1.3

Bajaj Electricals Buy 181 217 1,809 3,450 3,929 4.5 7.4 10.0 15.5 18.2 11.7 2.4 2.0 13.0 17.4 0.5 0.5

Cera Sanitaryware Buy 402 495 509 460 596 16.4 16.2 34.7 45.0 11.6 8.9 2.9 2.2 27.7 27.8 1.2 0.9

Cravatex Buy 355 545 92 272 308 7.2 7.3 37.5 45.4 9.5 7.8 2.3 1.8 23.7 22.7 0.4 0.4

CRISIL Neutral 966 - 6,782 982 1,136 34.3 34.3 34.3 40.0 28.1 24.2 12.7 10.2 50.9 46.9 6.5 5.4

Finolex Cables Buy 51 61 782 2,304 2,552 9.9 9.1 8.2 10.1 6.3 5.1 0.9 0.7 13.7 14.7 0.3 0.3

Force Motors Buy 420 550 548 2,027 2,299 4.6 5.1 35.3 50.0 11.9 8.4 0.5 0.5 3.9 5.3 0.1 0.1

Goodyear India Buy 286 360 660 1,494 1,607 6.4 7.8 23.9 33.0 12.0 8.7 1.9 1.6 16.5 20.1 0.2 0.2

Greenply Industries Sell 373 309 900 1,925 2,235 10.6 10.9 29.6 44.1 12.6 8.5 2.1 1.7 16.8 21.0 0.8 0.6

Hitachi Neutral 136 - 313 905 1,025 4.8 6.0 7.7 12.4 17.7 11.0 1.7 1.5 9.9 14.4 0.4 0.4

Honeywell Automation* Accumulate 2,612 2,842 2,309 2,117 2,491 8.1 7.8 140.5 157.9 18.6 16.5 2.8 2.4 16.3 15.8 1.0 0.8

Styrolution ABS India* Buy 612 744 1,076 1,059 1,116 8.5 9.5 36.0 42.0 17.0 14.6 2.5 2.2 15.4 16.0 1.1 1.0

ITD Cementation Buy 205 334 236 1,455 1,630 12.4 12.6 29.8 40.5 6.9 5.1 0.5 0.5 8.2 9.8 0.6 0.6

Jyothy Laboratories Accumulate 157 167 2,532 816 979 14.5 14.9 5.2 6.0 30.5 26.1 3.5 3.2 8.8 10.2 3.3 2.7MCX Buy 1,160 1,440 5,918 553 624 65.3 66.3 62.5 72.0 18.6 16.1 5.1 4.4 27.5 27.4 7.7 6.4

MRF Accumulate 12,283 13,416 5,209 13,030 14,405 10.3 10.6 1,418.1 1,677.1 8.7 7.3 1.5 1.3 19.1 18.7 0.5 0.4

Page Industries Neutral 3,304 - 3,685 856 1,047 19.1 19.6 101.2 127.3 32.7 25.9 16.7 12.4 58.5 54.9 4.4 3.6

Relaxo Footwears Buy 611 887 733 989 1,148 10.7 11.7 41.8 55.5 14.6 11.0 3.3 2.6 25.5 26.3 0.9 0.8

Sintex Industries Buy 58 79 1,825 4,751 5,189 16.3 16.6 13.6 15.8 4.3 3.7 0.6 0.5 12.9 13.2 0.8 0.6

Siyaram Silk Mills Buy 275 332 257 1,048 1,157 11.3 12.0 58.7 66.5 4.7 4.1 0.8 0.7 18.9 18.3 0.5 0.5

S. Kumars Nationwide Neutral 10 - 291 6,765 7,393 18.1 18.0 6.4 7.5 1.5 1.3 0.1 0.1 6.1 6.7 0.6 0.6

SpiceJet Buy 36 43 1,734 5,720 6,599 5.3 6.8 3.6 5.4 9.9 6.7 14.4 4.6 - - 0.4 0.4

TAJ GVK Buy 67 108 418 300 319 35.8 36.2 7.9 9.1 8.4 7.3 1.1 1.0 13.9 14.4 1.7 1.5


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zOthers

Tata Sponge Iron Buy 309 379 475 782 818 16.5 17.0 61.8 65.4 5.0 4.7 0.7 0.7 15.7 14.7 0.3 0.2

TTK Healthcare Buy 448 643 348 374 425 7.9 9.5 24.1 32.7 18.6 13.7 19.7 22.5 0.8 0.6

TVS Srichakra Buy 223 276 171 1,461 1,591 5.6 7.1 6.9 39.4 32.3 5.7 1.3 1.1 3.8 20.6 0.3 0.3

United Spirits Neutral 1,823 - 23,839 10,473 11,939 15.0 15.8 30.4 56.9 60.0 32.0 4.6 2.9 10.8 12.3 3.0 2.3

Vesuvius India Neutral 327 - 663 560 611 16.1 17.0 24.7 28.8 13.2 11.4 2.0 1.7 15.8 16.2 1.1 1.0

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on February 25, 2013


Market Outlook

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February 26, 2013

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Market Outlook, 26.02.13

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Transcript of Market Outlook, 26.02.13