Market Outlook Report, 17th January

7/30/2019 Market Outlook Report, 17th January

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Market Outlook January 17, 2013

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Dealers Diary The Indian market is expected to open flat to positive mirroring positive opening ofmost of the Asian markets.

US markets turned in a relatively lackluster performance during trading yesterday,extending a recent sideways move. The worries about the global economy stemmed from news that the World Bank cut its forecast for global economicgrowth in 2013 to 2.4% from the earlier forecast of 3.0%. However, the negativesentiment was partly offset by the release of a report by the Federal Reserveshowing a bigger than expected increase in US industrial production in the monthof December to 0.3% (estimate 0.2%).

Indian markets fell sharply yesterday, with rate-sensitive auto, banking and realty stocks leading the way, after RBI Governor Subbarao said there is no room forstimulus on both monetary and fiscal side.

Markets Today The trend deciding level for the day is 19,870 / 6,017 levels. If NIFTY trades abovethis level during the first half-an-hour of trade then we may witness a further rally up to 19,957 20,096 / 6,041 6,081 levels. However, if NIFTY trades below19,870 / 6,017 levels for the first half-an-hour of trade then it may correct up to19,731 19,644 / 5,977 5,953 levels.

SENSEX 19,644 19,731 19,870 19,957 20,096NIFTY 5,953 5,977 6,017 6,041 6,081

News Analysis GSM subscribers down 6.62mn to 657.1mn in December 2012 Axis Bank picks advisors for upto US $1bn share sale Diageo-USL deal hits CCI hurdle Daiichi Sankyo and Ranbaxy to leverage synergies in Thailand RCom, Alcatel-Lucent sign billion dollar network managed services contract 3QFY2013 Result Review: Bajaj Auto, Yes Bank 3QFY2013 Result Preview: HCL Tech, Hero MotoCorp, Exide Industries

Infotech EnterprisesRefer detailed news analysis on the following page

Net Inflows (January 15, 2013)

FII 3,551 2,479 1,072 10,802 10,802MFs 596 700 (104) (1,733) (1,733)

FII Derivatives (January 16, 2013)

Index Futures 1,145 1,489 (343) 7,466Stock Futures 1,836 1,641 196 32,974

Gainers / Losers

TTK Prestige 3,735 6.3 Reliance Comm 81 (5.9)Oberoi Realty 304 5.1 Pantaloon Retail 246 (5.0)

Britannia Industries 495 1.9 Sun TV Network 414 (4.7)

Strides Arco 1,081 1.9 Unitech 38 (4.5)

Godrej Cons 731 1.7 Hindalco Industries 123 (4.4)

BSE Sensex (0.8) (169.2) 19,818

Nifty (0.9) (54.7) 6,002

MID CAP (1.3) (97.8) 7,165SMALL CAP (1.2) (93.1) 7,412

BSE HC (0.2) (20.1) 8,122

BSE PSU (1.2) (89.1) 7,544

BANKEX (1.7) (244.4) 14,515

AUTO (2.4) (278.9) 11,335

METAL (2.1) (231.6) 10,810

OIL & GAS 0.4 38.3 9,004

BSE IT (0.1) (6.4) 6,392

Dow Jones (0.2) (23.7) 13,511NASDAQ 0.2 6.8 3,118

FTSE (0.2) (13.3) 6,104

Nikkei (2.6) (278.6) 10,600

Hang Seng (0.1) (24.5) 23,357Straits Times 0.4 12.4 3,209Shanghai Com (0.7) (16.2) 2,310

INFY 0.6 0.3 $51.3

WIT (1.5) (0.2) $9.7

IBN (1.4) (0.6) $44.4

HDB (3.0) (1.2) $39.6

Advances 938 328

Declines 2,001 1,198

Unchanged 128 68

BSE 2,462NSE 12,788


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GSM subscribers down 6.62mn to 657.1mn in December2012

Indian GSM telecom operators, including Bharti Airtel, Vodafone and Idea, lostmore than 6mn subscribers in December 2012, bringing down the total user base

to 657.16mn. The top three operators - Bharti Airtel, Vodafone and Idea Cellular -which account for over 67% of the GSM market lost over 5mn users in December2012 as per the data released by Cellular Operators Association of India (COAI).Except Uninor, which added 918,552 users, not even a single operator added any new subscriber during December 2012. Bharti Airtel lost 1.70mn users with itssubscriber base standing at 181.91mn. Vodafone and Idea Cellular lost 3.29mnand 1.97mn users, respectively. At the end of December 2012, Vodafone'ssubscriber base stood at 147.48mn, while that of Idea Cellular was at 113.95mn.

Aircel lost 1.98mn users in December, which squeezed its user base to 63.35mn,while Videocon lost 371,953 subscribers pulling down its base to 3.64mn in thereported month. State-run operator BSNL did not add a single subscriber in

December with 97.17mn subscribers. Another government-run firm MTNL lost2,253 users, taking its user base to 5.12mn at the end of December 2012.

Axis Bank picks advisors for upto US $1bn share sale

Axis Bank had last month, proposed to raise funds by offering 4.58cr sharesthrough various means, including qualified institutional placement (QIP), globaldepository receipt (GDR) or preferential issue to promoters. As per media reports,the bank has appointed JP Morgan Chase and Citigroup Inc, for share sale upto

US $1bn to institutional investors, which is likely to be launched over in the nexttwo to three weeks. The capital raising would aid its tier-I capital adequacy, whichhas dipped to 8.8% as of 3QFY2013 (10.3% including 9MFY2013 profits) from11.2% in FY2010 due to strong credit growth. The dilution is expected to be bookaccretive and will aid in further enhancing the bank's credit market share goingforward.

Diageo-USL deal hits CCI hurdle

As per media reports, the Competition Commission of India ( CCI) is believedto have expressed reservations over Diageos proposed purchase of a majority stake in UB Group's United Spirits Ltd (USL), as it has found certain clauses ofthe deal to be based on probabilities and not definitive in nature. CCI is notcomfortable with the deal terms that provide for the existing promoters of USLgiving a preferential treatment to Diageo, if it fails to get the required numberof shares from public shareholders through an open offer. As per reports CCIhas asked the companies to rework the contentious portion of the deal.


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Daiichi Sankyo and Ranbaxy to leverage synergies inThailand

Daiichi Sankyo Company (Daiichi Sankyo) and Ranbaxy Laboratories (Ranbaxy)announced their intention to integrate their business operations in Thailand, to

leverage and maximize the synergies of the Hybrid Business Model, which isexpected to commence business on April 1, 2013.

The planned integration of operations will provide a strong foundation for futureDaiichi Sankyo Group business expansion in Thailand. The development will bemutually beneficial to Ranbaxy and Daiichi Sankyo. It is expected to enhance theircompetitiveness while offering both innovative and affordable, high quality genericmedicines to the people of Thailand as well as generate cost synergies for bothcompanies.

Under this strategy, Daiichi Sankyo and Ranbaxy would integrate the managementof Daiichi Sankyos subsidiary in Thailand, Daiichi Sankyo (Thailand) Ltd. (DSTH)and Ranbaxys Thailand subsidiary, Ranbaxy Unichem Co. Ltd. (RUCL). The newrepresentative of the proposed integrated entity will be Suthas Thongprasert, whopresently heads DSTH.

The pharmaceutical market in Thailand is the second largest among ASEANcountries, and DSTH, has built its presence mainly by targeting healthcare facilitiesthrough innovative pharmaceuticals. The company was founded in 1994 and hadsales of JPY 1.2bn yen (US$13mn*) in FY2011. On the other hand, RUCL marketsgeneric medicines focusing on primary healthcare and pharmacies. RUCL wasestablished in 1983 and had sales of US$14mn in CY2011.

RCom, Alcatel-Lucent sign billion dollar network managedservices contract

Reliance Communications (RCom) has signed a multi-year US$1bn end-to-endnetwork managed services contract with Alcatel-Lucent. This contract runs up to2020. Currently, RCom has a 33:67 JV with Alcatel-Lucent, which was announcedin 2008 for managed services for wireless. The new contract, though covers only Eastern and Southern India, would cover the entire range of RCom's telecomservices - wireless, wireline, and utilities - on an end-to-end basis across the

country. This is different from managed service contracts deals signed by othertelecom companies, where the deals would be restricted only to the companyswireless operations. Alcatel-Lucent will enhance RCom's operations, and synergizehitherto independent wireless and wireline teams to form a single networkmanagement organization. As per the company, this optimized integration ofresources will help RCom to strengthen its focus on growing its business, with top-of-the-line services to customers. Alcatel-Lucent also will drive a standardization ofthe tools, processes and best practices that are applied across RCom's businesses.


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3QFY2013 Result Review

Bajaj Auto (CMP: ` 2,073 / TP: - / Upside: -)

Bajaj Auto (BJAUT) registered an in-line operating and bottom-line performancefor 3QFY2013; nevertheless, bottom-line performance was aided by higher otherincome. For 3QFY2013, BJAUT reported an 8.6% yoy (8.9% qoq) growth in itstop-line to ` 5,413cr driven by 4.9% (7.5% qoq) and 4.6% yoy (2.5% qoq) growthin volumes and net average realization respectively. While the volume growth wasled by the festival demand, new launches ( Pulsar 200NS and Discover 125ST ) andopening up of permits in Delhi and Karnataka; the net average realizationbenefitted due to the better product-mix (three-wheelers accounted for 12.5% ofsales as against 11.5% in 2QFY2013), price hikes of 2% in export markets (exportrealization up 8.9% qoq) and favorable exchange rate. The EBITDA marginremained stable on a sequential basis (up 30bp) and stood at 18.7% which wasin-line with our estimates. However on a yoy basis, it declined 105bp mainly on

account of raw-material cost pressures. A higher share of


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48.1% yoy to ` 313cr, largely on account of substantial growth witnessed infinancial advisory and retail fee income streams. The fee income from financialadvisory segment, (which is largely linked to deal closures during the quarter)more than doubled on a yoy basis. On the asset quality front, the bank witnessedsequential improvement, with gross and net NPA ratio coming down by 7bp and

1bp to a marginal 0.17% and 0.04%, respectively. On the Deccan chronicle e, tillnow the bank has already provided roughly 80% of the net exposure. Themanagement expects to recover 10-15% of the net exposure over the next twoquarters and is hopeful of eventually recovering 20-25% over the next fourquarters, which would lead to release of some provisioning already made to theextent of extra recovery. The account still remains a servicing one for the bank andhence the bank refrained from classifying it as an NPA during the quarter.

Yes Bank has taken challenges of building a retail depositbase head-on, nearly doubling its branch network over the past 18 months to 400branches and aggressively increasing savings rate to 7% as a smart customer-

acquisition strategy. In our view, the bank is in a sweet spot, wherein retailfranchise growth is likely to remain strong as large banks cede some market shareto it rather than offering higher savings rates to their entire customer base.Though, retail growth prospects appears stronger now, it currently trades atvaluations of 2.6x FY2014E ABV, which in our view, offers limited room for upsidefrom current levels.

FY2013E 3,364 2.8 1,282 36.3 163.0 1.6 24.6 14.3 3.2

FY2014E 4,260 3.0 1,505 42.6 198.7 1.5 23.6 12.2 2.6

3QFY2013 Result Preview

HCL Technologies (CMP: ` 674 / TP: ` 725 / Upside: 8%)

HCL Technologies is slated to announce its 2QFY2013 numbers today. We expectthe company to post revenue of US$1,139mn, 2.3% qoq growth. In rupee terms,the revenue is expected to grow by 1.2% qoq to ` 6,161cr. EBITDA margin isexpected to decline by 179bp qoq to 20.4% due to negative impact of wage hikes.PAT is expected to come in at ` 801cr. The company is one of our preferred picksin the IT sector.

FY2013E 24,453 19.8 3,168 45.0 24.4 15.0 3.6 9.2 1.8

FY2014E 27,269 18.7 3,522 50.0 22.6 13.5 3.0 8.5 1.6

Hero MotoCorp (CMP: ` 1,835 / TP: ` 2,014 / Upside: 10%)

Hero MotoCorp (HMCL) is slated to announce its 3QFY2013 results today. Weexpect the companys top-line to post a modest growth of ~3% yoy to ` 6,183crprimarily due to 1% yoy decline in volumes. However, the top-line is expected topost a strong ~19% growth as festival demand led to ~18% growth in volumes


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during the quarter. On a sequential basis, we expect the adjusted operatingmargins (adjusted for change in accounting for royalty payments) to improvesharply by 180bp to 11.7%, owing to the positive impact of operating leverage,better product-mix and positive impact of currency (~5% qoq depreciation in YENv/s INR). Hence the bottom line (adjusted) is expected to post a growth of ~37%

on a qoq basis. Nonetheless, it is expected to decline ~2% yoy led by contractionin operating margins (expected to decline ~50bp yoy). At ` 1,830, the stock istrading at 14.1x its FY2014E earnings.

FY2013E 24,743 14.8 2,360 118.2 48.3 15.5 6.7 8.0 1.1

FY2014E 27,966 15.2 2595.2 130.0 41.8 14.1 5.3 6.7 1.0

Exide Industries (CMP: ` 142 / TP: ` 155 / Upside: 9%)Exide Industries (EXID) is slated to announce its 3QFY2013 results today. Weexpect EXID to post a strong revenue growth of ~28% yoy (~5% qoq) to ` 1,595crowing to healthy demand from the automotive OEMs as well as replacementmarkets and continued traction in the inverter battery sales. We expect EBITDA margin to improve by ~115bp qoq (~30bp yoy) due to a richer product mix and~5% increase in battery prices in the replacement segment. Hence net profit isexpected to surge ~31% yoy (~14% qoq) to ` 137cr. At the CMP of ` 143, the stockis trading at 15.9x FY2014E earnings.

FY2013E 6,229 14.8 610 7.2 18.5 19.8 3.5 11.0 1.6

FY2014E 7,200 15.8 761 9.0 19.9 15.9 2.9 8.6 1.4

Infotech Enterprises (CMP: ` 182 / TP: - / Upside: -)

Infotech Enterprises is slated to announce its 3QFY2013 results today. We expectthe company to post revenues of US$90mn, up 3.0% qoq majorly led by volumegrowth. In rupee terms, revenues are expected to come in at ` 486cr, up 1.8% qoq.EBITDA margin is expected to increase by 61bp qoq to 19.3%. PAT is expected tocome in at ` 60cr.

FY2013E 1,900 18.2 212 19.1 15.2 9.5 1.4 3.9 0.7

FY2014E 2,064 17.8 235 21.2 14.6 8.6 1.2 3.2 0.6


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Quarterly Bloomberg Brokers Consensus Estimate

Net sales 1,560 1,250 25 1,517 3

EBITDA 215 166 30 188 14EBITDA margin (%) 13.8 13.2 12.4

Net profit 141 104 36 120 18

Net profit 215 202 6 215 0

Net sales 6,202 5,245 18.2 6,091 1.8

EBITDA 1,275 1,731 (26.4) 1,351 (5.7)

EBITDA margin (%) 20.5 33.0 22.2

Net profit 825 573 44.1 885 (6.8)

Net sales 6,106 5,984 2 5,151 19

EBITDA 844 943 (10) 719 17

EBITDA margin (%) 13.8 15.8 14.0

Net profit 584 613 (5) 441 33

Net profit 1,833 1,430 28 1,560 17

Net sales 3,119 2,747 14 2,822 11

EBITDA 1,556 1,402 11 1,443 8

EBITDA margin (%) 49.9 51.0 51.1

Net profit 1,578 1,274 24 1,540 2

Net profit 527 410 29 484 9

Net sales 7,293 6,106 19 7,146 2

EBITDA 2,795 2,292 22 2,688 4

EBITDA margin (%) 38.3 37.5 37.6Net profit 1,978 1,700 16 1,836 8


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Net sales 90,622 85,135 6 90,335 0

EBITDA 7,344 7,285 1 7,705 (5)

EBITDA margin (%) 8.1 8.6 8.5

Net profit 5,079 4,440 14 5,376 (6)

Net sales 3,958 4,476 (12) 3,488 13

EBITDA 491 652 (25) 454 8

EBITDA margin (%) 12.4 14.6 13.0

Net profit 337 416 (19) 414 (19)

Net sales 4,919 4,572 8 4,700 5

EBITDA 960 1,044 (8) 1,035 (7)

EBITDA margin (%) 19.5 22.8 22.0

Net profit 527 617 (15) 550 (4)

Net sales 2,996 2,561 17 2,616 15

EBITDA 487 397 23 382 27

EBITDA margin (%) 16.2 15.5 14.6Net profit 313 266 18 251 25

Net profit 1,167 981 19 1,151 1

Net sales 16,721 15,332 9 16,196 3

EBITDA 3,786 2,906 30 4,456 (15)EBITDA margin (%) 22.6 19.0 27.5

Net profit 2,435 2,130 14 3,142 (23)


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Economic and Political News

Cabinet to propose setup of holding co for PSU banks Despite slow sales, ticket size of auto loans grew 20% : CIBIL Petrol price hiked in Delhi by 32 paise Rising investment demand to drive gold price in 2013 Sharp slowdown in India weakens GDP of South Asia: WB Steel consumption up 3.9% to 55mn tonne during Apr-Dec

Corporate News

Coal India may start import this fiscal Diageo-United Spirits deal hits CCI hurdle HeidelbergCement expands India capacity to 5 mn tonnes Kingfisher fails to provide details on financing revival plan Persistent Systems to acquire NovaQuest Videocon aims to roll out 4G services this year

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


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Date Company

January 17, 2013 Hero Motocorp, HCL Tech, Exide Industries, Federal Bank, Infotech Enterprises

January 18, 2013 Reliance Industries, ITC, HDFC Bank, Wipro, Hind. Zinc, Reliance Infra., IDBI Bank, Blue Star, Mindtree, NIIT

January 19, 2013 UltraTech Cement, Bhushan Steel, Force Motors

January 20, 2013

January 21, 2013 NTPC, HDFC, Asian Paints, SpiceJet, Alembic Pharma

January 22, 2013 HUL, Kotak Mah. Bank, Indiabulls Fin., Bank of Maharashtra, Tata Sponge

January 23, 2013 Rcom, Zee Entertainment, Sun TV Network, Syndicate Bank, Rallis, Greenply

January 24, 2013 Larsen & Toubro, Sesa Goa, Andhra Bank, Ashok Leyland, Vijaya Bank

January 25, 2013 Maruti, Shriram Trans., Oriental Bank, LMW, Sarda Energy

January 26, 2013

January 27, 2013 Persistent

January 28, 2013 Mundra Port, Adani Power, JSW Steel , Amara Raja Batteries

January 29, 2013 Sterlite Inds, Dabur India, Indoco Remedies, PVR

January 30, 2013 Titan Inds., Colgate, Central Bank, IOB, Ipca labs, Dena Bank, Jyoti Structures

January 31, 2013 ICICI Bank, Siemens, Grasim Inds, Lupin, Godrej Consumer, Allahabad Bank, Tata Global, Thermax

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Time Country Event Description Unit Period Bloomberg DataLast Reported Estimated

January 17, 2013 7:00PM US Initial Jobless claims Thousands Jan 12 371.00 368.00

7:00PM US Housing Starts Thousands Dec 861.00 890.00

7:00PM US Building permits Thousands Dec 900.00 905.00

January 18, 2013 7:30AM China Industrial Production (YoY) % Change Dec 10.10 10.20

7:30AM China Real GDP (YoY) % Change 4Q 7.40 7.80January 22, 2013 8:30PM US Existing home sales Millions Dec 5.04 5.10

January 23, 2013 8:30PM Euro Zone Euro-Zone Consumer Confidence Value Jan A (26.50) --

3:00PM UK Jobless claims change % Change Dec (3.00) --

January 24, 2013 2:00PM Germany PMI Services Value Jan A 52.00 --

2:00PM Germany PMI Manufacturing Value Jan A 46.00 --

January 25, 2013 3:00PM UK GDP (YoY) % Change 4Q A -- --

8:30PM US New home sales Thousands Dec 377.00 383.50

January 29, 2013 8:30PM US Consumer Confidence S.A./ 1985=100 Jan 65.10 --

11:00AM India RBI Repo rate % Jan 29 8.00 --

11:00AM India RBI Cash Reserve ratio % Jan 29 4.25 --

11:00AM India RBI Reverse Repo rate % Jan 29 7.00 --

January 30, 2013 7:00PM US GDP Qoq (Annualised) % Change 4Q A 3.10 1.50

January 31, 2013 2:25PM Germany Unemployment change (000's) Thousands Jan 3.00 --

12:45AM US FOMC rate decision % Jan 30 0.25 --

February 1, 2013 7:00PM US Change in Nonfarm payrolls Thousands Jan 155.00 --

7:00PM US Unnemployment rate % Jan 7.80 --

3:00PM UK PMI Manufacturing Value Jan 51.40 --

6:30AM China PMI Manufacturing Value Jan 50.60 --

February 7, 2013 5:30PM UK BOE Announces rates % Ratio Feb 7 0.50 0.50

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

3:00PM UK Industrial Production (YoY) % Change Dec (2.40) --

February 8, 2013 5:29PM China Exports YoY% % Change Jan 14.10 --

11:00AM China Consumer Price Index (YoY) % Change Jan 2.50 --


January 17, 2013

Market Outlook


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Market OutlookJanuary 17, 2013


Macro watch

Exhibit 1 : Q uarterly G D P trends

Source: CSO, Ang el Research

Exhibit 2 : IIP trends

Source: M O SPI, Ang el Research

Exhibit 3 : M onthly WPI inflation trends

Source: M O SPI, Ang el Research

Exhibit 4 : M a nufacturing a nd 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


Exhibit 6 : Key policy rates

Source: RBI, Angel Research

3. 5

5. 7

9. 0

7. 5

11.2

8. 57. 6

8 .29. 2

8. 0

6. 76. 1

5. 3 5. 5 5. 3

3. 04. 05. 06. 07. 08. 09. 0

10.011.012.0

4 Q F Y 0 9

1 Q F Y 1 0

2 Q F Y 1 0

3 Q F Y 1 0

4 Q F Y 1 0

1 Q F Y 1 1

2 Q F Y 1 1

3 Q F Y 1 1

4 Q F Y 1 1

1 Q F Y 1 2

2 Q F Y 1 2

3 Q F Y 1 2

4 Q F Y 1 2

1 Q F Y 1 3

2 Q F Y 1 3

(%)

2. 7

1 .0

4. 3

(2.8)(1.3)

2. 5

(2.0)(0.1)

2. 0

(0.7)

8. 3

(0.1)

(4.0)

(2.0)

-

2. 0

4. 0

6. 0

8. 0

10.0

D e c - 1

1

J a n - 1

2

F e b

- 1 2

M a r - 1 2

A p r - 1 2

M a y - 1

2

J u n - 1

2

J u l - 1 2

A u g - 1

2

S e p - 1

2

O c t - 1 2

N o v - 1

2

(%)

7 .7

6 .9

7 .4

7 .77 .5 7 .6 7 .6 7 .5

8 .0 8 .1

7 .57 .2

6 .26 .46 .66 .87 .07 .27 .47 .67 .88 .08 .2

D e c - 1

1

J a n - 1

2

F e b

- 1 2

M a r - 1 2

A p r - 1 2

M a y - 1

2

J u n - 1

2

J u l - 1 2

A u g - 1

2

S e p - 1

2

O c t - 1 2

N o v - 1

2

(%)

48.0

50.0

52.0

54.0

56.0

58.0

60.0

D e c - 1

1

J a n - 1

2

F e b

- 1 2

M a r - 1 2

A p r - 1 2

M a y - 1

2

J u n - 1

2

J u l - 1 2

A u g - 1

2

S e p - 1

2

O c t - 1 2

N o v - 1

2

D e c - 1

2

M fg. PM I Services PM I

(30.0)

(15.0)

0 .0

15.0

30.0

J a n - 1

2

F e b

- 1 2

M a r - 1 2

A p r - 1 2

M a y - 1

2

J u n - 1

2

J u l - 1 2

A u g - 1

2

S e p - 1

2

O c t - 1 2

N o v - 1

2

D e c - 1

2

Exp orts yoy g ro wth Im ports yo y growth( %)

8.00

7.00

4.25

4.00

5.00

6.00

7.00

8.00

9.00

D e c - 1

1

J a n - 1

2

F e b

- 1 2

M a r - 1 2

A p r - 1 2

M a y - 1

2

J u n - 1

2

J u l - 1 2

A u g - 1

2

S e p - 1

2

O c t - 1 2

N o v - 1

2

D e c - 1

2

Repo rate Reverse Repo rate C RR(%)


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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 147 - 2,854 1,466 1,686 14.8 14.8 7.0 8.1 21.0 18.1 4.5 3.8 22.6 22.5 2.0 1.8

United Phosphorus Buy 135 170 5,953 8,421 9,263 16.5 16.5 15.0 17.0 9.0 7.9 1.3 1.2 15.6 15.5 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Neutral 294 - 5,029 2,911 3,321 16.2 16.2 17.3 19.8 17.0 14.8 4.7 3.7 31.1 27.6 1.7 1.4

Apollo Tyres Accumulate 88 96 4,456 13,713 15,341 11.2 11.2 12.5 14.8 7.1 6.0 1.3 1.1 20.2 19.9 0.5 0.4 Ashok Leyland Buy 27 31 7,104 14,226 16,256 9.4 10.0 2.1 2.8 12.7 9.5 2.3 2.0 12.9 16.0 0.6 0.5

Automotive Axle# Neutral 381 - 576 1,103 1,240 11.0 11.3 39.1 45.0 9.8 8.5 1.8 1.7 19.5 22.8 0.6 0.5Bajaj Auto Neutral 2,076 - 60,061 20,775 23,889 18.5 19.0 107.6 126.4 19.3 16.4 8.0 6.3 45.8 42.8 2.5 2.1Bharat Forge Accumulate 252 278 5,859 6,754 7,565 15.5 15.7 18.8 23.2 13.4 10.9 2.3 2.0 18.5 19.7 1.0 0.9

Bosch India* Neutral 9,150 - 28,731 9,973 11,320 17.8 18.0 396.2 455.7 23.1 20.1 4.4 3.7 18.8 18.2 2.5 2.1CEAT Buy 111 163 379 4,989 5,634 8.2 8.5 27.1 40.8 4.1 2.7 0.5 0.4 13.2 17.2 0.3 0.2

Exide Industries Accumulate 142 155 12,083 6,229 7,200 14.8 15.8 7.2 9.0 19.8 15.9 3.5 2.9 18.5 19.9 1.6 1.4FAG Bearings* Accumulate 1,670 1,807 2,775 1,715 1,939 17.6 18.4 127.7 150.6 13.1 11.1 2.6 2.1 21.7 21.1 1.4 1.1

Hero Motocorp Accumulate 1,835 2,014 36,652 24,743 27,966 14.8 15.2 118.2 130.0 15.5 14.1 6.7 5.3 48.3 41.8 1.2 1.0JK Tyre Buy 121 165 496 7,517 8,329 6.6 6.6 37.2 41.3 3.2 2.9 0.6 0.5 18.8 17.8 0.3 0.3Mahindra and Mahindra Accumulate 902 998 55,390 40,035 46,272 11.5 11.6 54.4 62.1 16.6 14.5 3.7 3.1 24.2 23.2 1.2 1.0

Maruti Neutral 1,493 - 43,133 43,384 51,903 7.3 8.6 67.3 94.6 22.2 15.8 2.6 2.2 12.1 15.1 0.8 0.7Motherson Sumi Neutral 194 - 11,428 24,285 27,317 6.7 7.2 8.1 10.6 24.2 18.4 5.1 4.1 22.9 24.7 0.6 0.6

Subros Buy 30 35 180 1,286 1,479 9.4 9.7 2.6 5.1 11.5 5.9 0.6 0.6 5.6 10.3 0.4 0.4Tata Motors Accumulate 320 337 85,300 190,883 217,164 12.8 13.1 35.5 42.5 9.0 7.5 2.4 1.9 30.2 27.6 0.5 0.4

TVS Motor Neutral 45 - 2,157 7,298 8,123 6.1 6.4 4.6 5.8 10.0 7.8 1.6 1.4 17.4 19.4 0.3 0.2

Capital Goods

ABB* Sell 691 573 14,649 7,790 9,653 4.5 7.8 8.7 22.1 79.5 31.3 5.5 4.8 7.1 16.5 1.9 1.5BGR Energy Neutral 260 - 1,878 3,567 4,357 11.8 10.9 24.6 26.8 10.6 9.7 1.5 1.4 30.7 26.3 1.0 0.9BHEL Neutral 226 - 55,218 47,801 43,757 18.5 18.0 24.6 21.8 9.2 10.4 2.8 2.3 33.5 24.5 1.0 1.1

Blue Star Buy 173 224 1,556 2,538 2,681 4.6 5.7 7.3 11.3 23.6 15.3 3.5 2.9 15.6 20.7 0.7 0.6Crompton Greaves Accumulate 118 135 7,554 12,320 14,390 5.5 7.2 4.3 7.8 27.4 15.1 2.0 1.8 7.4 12.6 0.6 0.6Jyoti Structures Buy 44 51 361 2,794 3,048 10.6 10.6 9.2 11.7 4.8 3.8 0.5 0.4 11.9 13.5 0.3 0.3

KEC International Buy 66 78 1,705 6,909 7,907 6.2 7.2 5.4 8.8 12.3 7.5 1.4 1.2 17.0 23.6 0.4 0.4LMW Reduce 2,250 1,992 2,534 2,369 2,727 11.7 11.7 143.4 166.0 15.7 13.6 2.6 2.4 17.4 18.4 0.6 0.4

Thermax Neutral 591 - 7,037 5,552 5,767 9.3 10.2 28.3 30.9 20.9 19.1 3.8 3.3 19.3 18.4 1.1 1.1


Market Outlook

Stock Watch

January 17, 2013


13/19



Cement

ACC Neutral 1,386 - 26,022 11,012 12,333 21.1 20.9 77.0 80.3 18.0 17.3 3.4 3.1 19.5 18.7 2.1 1.8 Ambuja Cements Neutral 198 - 30,458 10,210 11,811 26.0 25.7 11.2 12.6 17.6 15.7 3.8 3.4 20.3 20.7 2.6 2.1

India Cements Neutral 86 - 2,654 4,293 4,666 17.7 18.1 8.6 10.8 10.1 8.0 0.7 0.7 7.5 9.0 1.0 0.9J K Lakshmi Cements Neutral 140 - 1,711 2,171 2,544 22.5 22.5 21.6 23.2 6.5 6.0 1.2 1.0 19.0 17.8 0.9 1.1

Madras Cements Neutral 230 - 5,478 3,814 4,045 28.8 27.1 18.3 18.7 12.6 12.3 2.3 2.0 19.4 17.0 2.1 1.8Shree Cements^ Neutral 4,461 - 15,540 5,701 6,210 29.7 28.1 240.7 260.7 18.5 17.1 4.5 3.7 27.1 23.6 2.2 1.8

UltraTech Cement Neutral 1,920 - 52,641 21,277 23,939 22.3 23.2 101.5 119.0 18.9 16.1 3.5 3.0 19.9 19.8 2.4 2.3Construction

Ashoka Buildcon Buy 201 286 1,058 2,032 2,311 22.4 22.4 27.0 31.6 7.4 6.4 0.9 0.8 13.0 13.4 1.9 2.2

Consolidated Co Neutral 16 - 294 2,262 2,522 5.9 6.3 0.9 1.6 17.4 10.2 0.5 0.5 2.7 4.6 0.4 0.4IRB Infra Buy 128 164 4,246 3,843 4,212 43.1 43.6 16.8 17.8 7.6 7.2 1.3 1.1 18.3 17.0 3.2 3.5ITNL Neutral 214 - 4,163 6,564 7,054 27.2 27.4 26.3 29.0 8.2 7.4 1.3 1.1 17.0 16.3 2.8 2.8

IVRCL Infra Neutral 42 - 1,292 4,249 6,897 7.8 8.2 0.3 3.4 136.5 12.4 0.6 0.6 0.4 4.4 0.9 0.6Jaiprakash Asso. Accumulate 92 100 19,900 13,842 15,863 26.9 26.4 3.7 4.6 25.2 20.3 1.5 1.4 6.2 7.3 2.9 2.6

Larsen & Toubro Accumulate 1,542 1,748 94,837 61,031 69,753 11.2 11.6 73.8 85.5 20.9 18.0 3.3 2.9 13.5 14.1 1.7 1.5Nagarjuna Const. Neutral 56 - 1,425 5,947 6,569 8.5 8.6 3.1 4.1 17.9 13.5 0.6 0.6 3.3 4.2 0.6 0.6

Punj Lloyd Neutral 56 - 1,858 11,892 13,116 9.0 9.0 1.8 3.2 30.9 17.4 0.6 0.6 2.0 3.5 0.6 0.5Sadbhav Engg. Buy 130 168 1,967 2,344 2,804 10.6 10.7 7.2 8.7 18.1 15.0 2.2 1.9 13.0 13.5 1.2 1.0

Simplex Infra Buy 215 251 1,062 6,882 8,032 9.1 9.1 23.2 31.3 9.3 6.9 0.8 0.7 9.1 11.2 0.5 0.5Unity Infra Buy 44 59 323 2,180 2,455 13.7 13.4 13.3 15.0 3.3 2.9 0.4 0.3 12.5 12.5 0.5 0.5

Financials

Allahabad Bank Accumulate 182 199 9,078 6,403 7,186 2.7 2.8 30.5 33.6 5.9 5.4 0.9 0.8 14.9 14.6 - -

Andhra Bank Neutral 122 - 6,799 4,706 5,444 2.9 3.0 21.4 22.4 5.7 5.4 0.9 0.8 15.1 14.2 - - Axis Bank Buy 1,410 1,641 60,214 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 Neutral 872 - 35,864 15,284 18,032 2.5 2.6 109.6 137.7 8.0 6.3 1.2 1.0 15.5 17.1 - -Bank of India Neutral 379 - 21,769 12,568 14,758 2.2 2.4 41.6 64.1 9.1 5.9 1.1 1.0 11.6 16.0 - -

Bank of Maharashtra Accumulate 59 64 3,484 3,576 3,893 3.1 3.1 9.3 12.0 6.4 4.9 0.8 0.7 14.0 16.1 - -Canara Bank Neutral 509 - 22,544 10,828 12,005 2.1 2.2 64.7 80.4 7.9 6.3 1.1 0.9 13.2 14.7 - -

Central Bank Neutral 89 - 6,585 7,252 8,236 2.5 2.6 16.8 21.4 5.3 4.2 1.0 0.8 13.1 14.8 - -Corporation Bank Buy 469 551 6,954 4,835 5,570 2.0 2.2 105.0 99.8 4.5 4.7 0.8 0.7 17.5 14.8 - -

Dena Bank Accumulate 118 132 4,146 3,125 3,457 2.7 2.8 26.2 24.2 4.5 4.9 0.8 0.7 19.6 15.6 - -


Market Outlook

Stock Watch

January 17, 2013


14/19



Financials

Federal Bank Accumulate 516 576 8,829 2,682 2,968 3.3 3.2 48.6 51.7 10.6 10.0 1.4 1.3 13.8 13.2 - -HDFC Neutral 817 - 125,963 7,336 8,802 3.5 3.5 31.5 37.8 25.9 21.6 5.2 4.6 34.8 32.1 - -

HDFC Bank Neutral 661 - 156,423 21,615 26,671 4.4 4.5 28.7 35.9 23.1 18.4 4.4 3.7 20.7 22.0 - -ICICI Bank Buy 1,179 1,397 135,571 22,219 26,447 2.9 3.0 69.1 82.9 17.1 14.2 2.1 1.9 14.2 15.6 - -

IDBI Bank Accumulate 113 119 14,459 7,990 9,279 1.8 2.1 16.8 22.1 6.7 5.1 0.8 0.7 11.7 13.9 - -Indian Bank Buy 211 252 9,072 5,902 6,563 3.2 3.2 41.3 43.2 5.1 4.9 0.9 0.8 18.4 16.8 - -

IOB Accumulate 88 98 6,998 7,063 8,308 2.3 2.5 12.6 20.4 7.0 4.3 0.7 0.6 9.0 13.3 - -J & K Bank Neutral 1,328 - 6,437 2,830 2,910 3.6 3.6 234.8 197.4 5.7 6.7 1.3 1.1 25.1 18.0 - -LIC Housing Finance Buy 280 328 14,115 1,799 2,255 2.3 2.4 20.3 27.3 13.8 10.3 2.2 1.9 16.9 19.7 - -

Oriental Bank Accumulate 339 369 9,901 6,330 7,105 2.6 2.7 58.4 65.1 5.8 5.2 0.8 0.7 14.5 14.4 - -Punjab Nat l.Bank Accumulate 884 933 29,968 19,688 22,497 3.2 3.3 138.9 164.5 6.4 5.4 1.1 1.0 16.7 17.3 - -

South Ind.Bank Buy 28 34 3,728 1,583 1,789 3.0 2.9 3.5 4.1 8.0 6.9 1.3 1.2 19.1 17.7 - -St Bk of India Accumulate 2,433 2,600 163,259 60,677 69,712 3.3 3.3 224.3 257.3 10.9 9.5 1.8 1.6 17.6 17.7 - -

Syndicate Bank Accumulate 139 158 8,373 6,810 7,807 3.0 3.0 28.0 27.2 5.0 5.1 0.9 0.8 19.4 16.4 - -UCO Bank Neutral 82 - 5,467 5,235 6,086 2.3 2.4 12.0 14.9 6.9 5.5 1.1 0.9 12.0 13.5 - -Union Bank Accumulate 261 286 14,372 9,963 11,536 2.8 2.9 40.8 46.8 6.4 5.6 1.1 0.9 16.2 16.4 - -

United Bank Buy 78 90 2,828 3,498 3,858 2.5 2.8 15.1 21.6 5.2 3.6 0.7 0.6 12.5 16.1 - - Vijaya Bank Accumulate 63 66 3,112 2,333 2,728 2.0 2.2 7.3 10.4 8.6 6.1 0.9 0.8 9.3 12.1 - -

Yes Bank Accumulate 518 576 18,531 3,364 4,260 2.8 3.0 36.3 42.6 14.3 12.2 3.2 2.6 24.6 23.6 - -

FMCG

Asian Paints Neutral 4,277 - 41,021 11,198 13,184 15.4 15.7 117.1 141.5 36.5 30.2 12.0 9.5 36.4 35.0 3.6 3.0

Britannia Buy 494 584 5,899 5,627 6,581 4.9 5.7 18.3 24.7 27.0 20.0 9.8 7.5 39.1 42.7 1.0 0.8Colgate Neutral 1,465 - 19,926 3,146 3,573 20.6 21.4 36.4 42.5 40.3 34.5 37.3 31.2 102.0 98.5 6.2 5.4

Dabur India Neutral 129 - 22,423 6,124 7,101 17.0 16.8 4.7 5.4 27.7 23.8 11.7 9.1 44.5 41.5 3.7 3.1GlaxoSmith Con* Neutral 3,822 - 16,075 3,084 3,617 15.3 15.5 101.2 118.3 37.8 32.3 11.5 9.3 33.5 31.9 4.9 4.1

Godrej Consumer Neutral 731 - 24,880 6,355 7,548 16.7 17.4 20.3 25.4 36.0 28.7 7.6 6.3 23.2 25.1 4.1 3.4HUL Neutral 499 - 107,925 25,350 28,974 13.3 13.5 14.7 17.1 33.9 29.3 26.8 18.9 84.5 75.8 4.1 3.5

ITC Neutral 284 - 223,467 28,787 33,554 35.7 36.1 9.1 10.8 31.1 26.3 10.2 8.5 35.2 35.1 7.4 6.3Marico Neutral 225 - 14,519 4,840 5,643 13.6 13.6 6.4 8.1 35.0 27.7 6.9 5.6 26.3 23.3 3.1 2.5Nestle* Neutral 4,821 - 46,479 8,487 10,081 21.2 22.1 113.0 142.5 42.7 33.8 25.6 17.6 70.5 61.6 5.5 4.5


Market Outlook

Stock Watch

January 17, 2013


15/19



FMCG

Tata Global Neutral 157 - 9,678 7,207 7,927 9.1 9.5 6.9 8.2 22.7 19.2 2.4 2.3 8.9 9.8 1.3 1.1

IT

HCL Tech^ Accumulate 674 725 46,831 24,453 27,269 19.8 18.7 45.0 50.0 15.0 13.5 3.6 3.0 24.4 22.6 1.8 1.6

Hexaware* Buy 91 118 2,710 1,941 2,118 20.8 19.0 10.7 10.7 8.5 8.5 2.1 1.8 25.3 22.0 1.1 1.0Infosys Neutral 2,771 - 159,124 40,746 44,283 28.9 28.8 162.6 172.9 17.1 16.0 4.0 3.4 23.5 21.3 3.3 2.9

Infotech Enterprises Neutral 183 - 2,038 1,900 2,064 18.2 17.8 19.1 21.2 9.6 8.6 1.5 1.3 15.2 14.6 0.7 0.6

KPIT Cummins Accumulate 116 130 2,220 2,221 2,390 16.1 15.9 11.3 13.0 10.2 8.9 2.3 1.8 21.9 20.9 1.0 0.9Mahindra Satyam Neutral 116 - 13,618 7,670 8,308 20.3 19.3 9.9 10.8 11.7 10.7 3.3 2.5 28.0 23.5 1.4 1.2Mindtree Accumulate 738 781 3,039 2,339 2,502 20.9 18.4 75.4 78.1 9.8 9.5 2.4 1.9 24.6 20.3 1.1 0.9

Mphasis& Neutral 399 - 8,379 5,531 5,874 17.6 17.5 35.4 37.7 11.3 10.6 1.7 1.4 14.7 13.5 1.0 0.9NIIT Buy 29 36 475 1,048 1,161 9.1 10.9 4.1 6.2 7.0 4.7 0.7 0.7 10.3 14.1 0.3 0.2Persistent Neutral 564 - 2,256 1,277 1,398 26.8 25.2 48.0 53.9 11.7 10.5 2.2 1.9 19.0 17.9 1.4 1.2

TCS Accumulate 1,348 1,465 263,853 62,954 70,871 29.0 28.9 71.6 79.1 18.8 17.0 6.3 5.1 33.2 29.7 4.0 3.5Tech Mahindra Accumulate 996 1,087 12,734 6,671 7,290 19.8 19.0 94.1 1 06.4 10.6 9.4 2.5 2.0 24.0 21.6 2.0 1.7

Wipro Neutral 420 - 103,440 43,231 47,241 20.0 20.0 26.2 28.1 16.1 15.0 3.1 2.7 19.3 17.9 2.1 1.8

Media

D B Corp Accumulate 232 264 4,246 1,581 1,784 23.3 25.0 11.6 14.4 20.0 16.1 3.9 3.3 21.0 22.3 2.6 2.2

HT Media Accumulate 107 121 2,504 2,111 2,272 15.0 15.2 7.4 8.3 14.5 12.9 1.6 1.4 11.3 11.4 0.8 0.7Jagran Prakashan Accumulate 111 126 3,500 1,503 1,681 23.1 23.1 6.4 7.3 17.3 15.2 4.3 3.8 25.8 26.5 2.5 2.2

PVR Neutral 284 - 821 682 786 17.3 16.9 17.6 19.7 16.1 14.4 1.9 1.7 14.9 14.5 1.5 1.3Sun TV Network Neutral 417 - 16,451 1,942 2,237 77.2 75.5 17.6 19.1 23.7 21.9 5.7 5.2 25.8 25.2 8.0 6.9

Metals & Mining

Bhushan Steel Neutral 429 - 9,721 11,307 14,287 29.5 29.1 45.1 51.0 9.5 8.4 1.1 1.0 12.2 12.2 2.9 2.3Coal India Neutral 352 - 222,620 66,666 70,292 25.7 27.3 24.2 26.6 14.6 13.2 4.3 3.5 33.1 29.1 2.4 2.1

Electrosteel Castings Accumulate 26 29 898 1,984 2,074 10.6 11.6 0.8 2.0 31.0 12.8 0.5 0.2 1.7 4.1 0.7 0.6Hind. Zinc Accumulate 132 145 55,838 12,446 13,538 52.3 52.9 15.0 16.4 8.8 8.1 1.7 1.5 21.4 19.7 2.6 2.0

Hindalco Neutral 123 - 23,626 79,148 89,258 9.4 9.0 15.0 15.6 8.2 7.9 0.7 0.6 8.8 8.4 0.7 0.6JSW Steel Neutral 839 - 18,718 39,586 41,459 17.6 17.0 78.7 90.1 10.7 9.3 1.0 1.0 10.2 10.7 0.9 0.9MOIL Neutral 259 - 4,343 941 1,019 47.3 48.3 25.8 28.1 10.0 9.2 1.6 1.4 16.7 16.2 2.3 1.9

Monnet Ispat Buy 269 344 1,733 2,501 3,264 22.2 24.6 41.8 55.2 6.4 4.9 0.7 0.6 11.3 13.4 1.8 1.3Nalco Reduce 49 44 12,628 6,898 7,841 9.9 14.7 2.0 3.2 24.7 15.4 1.1 1.0 4.3 6.8 1.4 1.3

NMDC Buy 160 198 63,396 11,209 12,525 78.4 78.3 18.5 20.6 8.6 7.8 2.1 1.8 27.0 24.6 3.7 3.1


Market Outlook

Stock Watch

January 17, 2013


16/19



Metals & Mining

SAIL Neutral 92 - 38,001 47,252 60,351 14.2 14.8 9.6 11.7 9.6 7.8 0.9 0.8 9.4 10.6 1.3 1.0Sesa Goa Neutral 191 - 16,600 4,551 6,640 32.8 34.4 33.7 39.3 5.7 4.9 1.0 0.8 18.3 18.3 4.3 2.9

Sterlite Inds Neutral 116 - 38,967 43,185 45,442 23.3 23.7 16.8 17.9 6.9 6.5 0.8 0.7 11.6 11.2 0.9 0.8Tata Steel Accumulate 415 463 40,301 145,725 154,108 8.3 9.5 22.0 44.5 18.8 9.3 0.9 0.8 4.9 9.3 0.6 0.5

Sarda Buy 130 153 466 1,442 1,494 17.6 17.3 27.2 28.7 4.8 4.5 0.5 0.5 11.5 11.0 0.7 0.6Prakash Industries Buy 50 73 676 2,694 2,906 14.6 16.6 16.4 20.8 3.1 2.4 0.3 0.3 11.4 12.8 0.5 0.3Godawari Power andIspat Buy 117 143 372 2,342 2,470 13.7 15.3 27.7 33.8 4.2 3.5 0.4 0.4 10.9 11.4 0.6 0.6Oil & Gas

Cairn India Accumulate 336 382 64,202 17,567 17,643 76.2 72.3 61.1 56.8 5.5 5.9 1.1 1.0 22.0 17.5 2.8 2.4

GAIL Neutral 373 - 47,276 46,652 54,142 15.7 15.7 34.0 35.3 11.0 10.6 1.9 1.7 18.5 16.8 0.8 0.6ONGC Neutral 303 - 259,574 147,139 154,821 33.9 33.7 30.7 32.3 9.9 9.4 1.7 1.5 18.3 17.2 1.5 1.4

Reliance Industries Neutral 860 - 281,742 362,700 380,031 7.9 8.0 60.0 63.3 14.3 13.6 1.4 1.3 11.1 10.6 0.8 0.7Gujarat Gas* Neutral 309 - 3,964 3,128 3,707 13.2 11.7 22.8 23.5 13.6 13.1 4.1 3.6 33.2 29.2 1.1 0.9Indraprastha Gas Neutral 262 - 3,663 3,213 3,643 23.3 23.5 24.3 25.7 10.8 10.2 2.5 2.1 25.0 22.1 1.2 1.1

Petronet LNG Accumulate 162 179 12,135 32,210 41,362 6.1 5.8 15.4 15.6 10.5 10.4 2.8 2.3 29.1 24.1 0.5 0.4Gujarat State PetronetLtd. Neutral 77 - 4,341 1,079 1,034 91.8 91.9 8.8 8.4 8.8 9.2 1.5 1.3 17.9 15.0 3.7 3.8

Pharmaceuticals

Alembic Pharma Buy 69 91 1,299 1,624 1,855 14.2 15.6 6.6 9.1 10.4 7.6 2.6 2.0 27.9 29.9 0.9 0.8

Aurobindo Pharma Accumulate 188 208 5,480 5,463 6,279 15.0 15.0 12.4 14.0 15.2 13.5 2.0 1.7 18.8 17.8 1.6 1.4 Aventis* Neutral 2,325 - 5,354 1,482 1,682 17.5 16.6 82.9 87.8 28.0 26.5 4.4 3.5 16.3 14.8 3.4 2.9Cadila Healthcare Accumulate 870 926 17,814 6,148 7,386 18.6 19.6 32.7 44.8 26.6 19.4 5.8 4.7 23.7 26.6 3.3 2.7

Cipla Neutral 416 - 33,394 8,151 9,130 25.8 24.8 20.2 21.6 20.6 19.3 3.7 3.2 19.4 17.6 3.9 3.4Dr Reddy's Neutral 1,926 - 32,697 10,696 11,662 20.7 21.0 83.7 92.9 23.0 20.7 4.7 4.0 22.4 20.8 3.3 3.0

Dishman Pharma Buy 111 145 896 1,280 1,536 20.2 20.2 10.4 14.5 10.7 7.7 0.9 0.8 8.7 11.0 1.4 1.2GSK Pharma* Neutral 2,205 - 18,674 2,651 2,993 31.7 31.2 76.0 82.4 29.0 26.8 8.4 7.5 20.1 26.3 6.2 5.4

Indoco Remedies Buy 62 89 572 685 837 15.2 15.2 7.4 8.9 8.4 7.0 1.3 1.1 16.4 17.0 1.0 0.8Ipca labs Neutral 493 - 6,216 2,850 3,474 21.0 21.0 29.9 37.3 16.5 13.2 3.9 3.1 26.7 26.4 2.4 2.0

Lupin Accumulate 580 655 25,955 8,426 10,082 19.7 20.0 26.1 31.1 22.2 18.7 5.2 4.1 25.8 24.7 3.2 2.6Ranbaxy* Neutral 496 - 20,977 12,046 11,980 16.0 15.8 37.3 32.1 13.3 15.5 5.1 4.1 45.3 29.7 1.8 1.7Sun Pharma Neutral 720 - 74,436 9,902 12,313 42.6 42.6 26.7 29.1 27.0 24.7 5.1 4.4 20.7 19.1 6.9 5.3

Power

GIPCL Accumulate 71 78 1,078 1,523 1,568 30.3 30.3 5.4 11.5 13.2 6.2 0.7 0.7 5.6 11.3 1.2 1.0


Market Outlook

Stock Watch

January 17, 2013


17/19



Power

NTPC Neutral 156 - 128,670 72,809 81,951 23.0 23.7 12.0 13.4 13.0 11.7 1.6 1.4 12.5 12.9 2.4 2.3

Real Estate

Anant Raj Neutral 91 - 2,694 657 875 52.0 56.1 8.4 12.7 10.9 7.2 0.7 0.6 6.3 8.9 5.4 4.0

DLF Neutral 249 - 42,229 9,878 12,033 44.7 46.1 9.6 13.4 26.0 18.5 1.6 1.6 6.4 8.7 6.8 5.6HDIL Neutral 120 - 5,032 2,441 3,344 55.1 48.2 22.7 26.6 5.3 4.5 0.4 0.4 8.8 9.4 3.9 2.9

MLIFE Neutral 410 - 1,673 813 901 26.2 26.6 32.0 37.1 12.8 11.1 1.3 1.2 10.4 11.0 2.4 2.1

TelecomBharti Airtel Neutral 342 - 130,046 80,353 86,654 30.9 31.3 8.6 11.8 40.0 29.0 2.4 2.3 6.1 7.8 2.4 2.1

Idea Cellular Neutral 117 - 38,832 21,797 23,142 26.9 27.7 3.1 4.7 37.4 25.2 2.8 2.5 7.4 9.8 2.2 2.1Rcom Neutral 81 - 16,708 21,032 22,084 31.8 30.2 2.9 4.0 27.7 20.3 0.5 0.4 1.6 2.2 2.5 2.2

zOthers

Abbott India Accumulate 1,485 1,590 3,156 1,629 1,886 11.8 13.3 60.8 79.5 24.4 18.7 5.0 4.2 22.0 24.4 1.7 1.4Bajaj Electricals Accumulate 205 217 2,047 3,497 3,968 6.6 7.6 9.8 15.5 20.9 13.2 2.7 2.3 12.7 17.4 0.6 0.5

Cera Sanitaryware Accumulate 439 495 555 460 596 16.4 16.2 34.7 45.0 12.6 9.8 3.1 2.4 27.7 27.8 1.3 1.0Cravatex Buy 426 545 110 272 308 7.2 7.3 37.5 45.4 11.4 9.4 2.7 2.1 23.7 22.7 0.5 0.5

CRISIL Neutral 1,006 - 7,067 982 1,136 34.3 34.3 34.3 40.0 29.3 25.2 13.3 10.6 50.9 46.9 6.8 5.7Finolex Cables Accumulate 57 61 872 2,304 2,552 9.9 9.1 8.2 10.1 7.0 5.7 1.0 0.8 13.7 14.7 0.3 0.3

Force Motors Buy 467 537 608 2,318 2,700 5.0 5.7 45.0 67.0 10.4 7.0 0.5 0.5 5.0 7.0 0.2 0.2Goodyear India Accumulate 331 360 763 1,494 1,607 6.4 7.8 23.9 33.0 13.8 10.0 2.2 1.9 16.5 20.1 0.3 0.2Greenply Industries Sell 387 309 934 1,925 2,235 10.6 10.9 29.6 44.1 13.1 8.8 2.1 1.7 16.8 21.0 0.8 0.6

Hitachi Reduce 156 146 359 873 989 4.4 6.5 6.4 12.2 24.6 12.9 2.0 1.8 8.3 14.4 0.5 0.4Honeywell Automation* Accumulate 2,562 2,842 2,265 1,809 2,117 5.5 7.5 84.9 135.3 30.2 18.9 3.3 2.8 11.3 16.0 1.1 1.0

Styrolution ABS India* Neutral 730 - 1,284 1,059 1,116 8.5 9.5 36.0 42.0 20.3 17.4 3.0 2.6 15.4 16.0 1.2 1.2ITD Cementation Buy 249 334 286 1,455 1,630 12.4 12.6 29.8 40.5 8.3 6.1 0.7 0.6 8.2 9.8 0.6 0.6

Jyothy Laboratories Neutral 156 - 2,515 1,228 1,443 9.0 10.9 3.9 6.4 40.1 24.4 4.0 3.7 10.1 15.6 2.5 2.1MCX Neutral 1,387 - 7,074 553 624 65.3 66.3 62.5 72.0 22.2 19.3 6.1 5.3 27.5 27.4 9.8 8.2

MRF Neutral 13,394 - 5,680 1 3,030 1 4,405 10.3 10.6 1,418.1 1,677.1 9.4 8.0 1.7 1.4 19.1 18.7 0.5 0.5Page Industries Accumulate 3,380 3,602 3,770 836 1,023 20.2 20.6 105.6 133.4 32.0 25.3 16.3 11.5 59.3 53.2 4.6 3.7Relaxo Footwears Accumulate 884 933 1,061 1,019 1,208 11.0 12.5 47.0 66.7 18.8 13.3 4.7 3.5 28.2 30.1 1.2 1.0

Sintex Industries Accumulate 70 79 2,110 4,751 5,189 16.3 16.6 13.6 15.8 5.2 4.5 0.7 0.6 12.9 13.2 0.8 0.7Siyaram Silk Mills Buy 300 366 281 1,043 1,149 12.3 12.9 65.7 73.3 4.6 4.1 0.9 0.7 21.0 19.6 0.5 0.5

S. Kumars Nationwide Neutral 14 - 418 6,765 7,393 18.1 18.0 6.4 7.5 2.2 1.9 0.1 0.1 6.1 6.7 0.7 0.6


Market Outlook

Stock Watch

January 17, 2013


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zOthers

SpiceJet Reduce 46 43 2,211 5,720 6,599 5.3 6.8 3.6 5.4 12.7 8.5 18.3 5.8 - - 0.5 0.4TAJ GVK Buy 70 108 437 300 319 35.8 36.2 7.9 9.1 8.8 7.7 1.2 1.1 13.9 14.4 1.8 1.5

Tata Sponge Iron Buy 307 384 473 750 803 18.6 18.4 65.4 69.1 4.7 4.5 0.7 0.6 16.5 15.3 0.2 0.1TTK Healthcare Buy 558 643 434 374 425 7.9 9.5 24.1 32.7 23.2 17.1 19.7 22.5 1.0 0.8

TVS Srichakra Buy 260 322 199 1,461 1,625 6.9 8.2 24.6 53.7 10.6 4.9 1.3 1.1 12.9 24.9 0.4 0.3United Spirits Neutral 1,791 - 23,427 10,289 11,421 12.8 12.8 26.0 45.3 68.9 39.5 3.1 2.9 5.8 7.6 2.6 2.4

Vesuvius India Neutral 349 - 709 560 611 16.1 17.0 24.7 28.8 14.2 12.2 2.1 1.9 15.8 16.2 1.2 1.0Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on January 16, 2013


Market Outlook

Stock Watch

January 17, 2013


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Market Outlook Report, 17th January

Documents

Transcript of Market Outlook Report, 17th January