Market Outlook 060712

7/31/2019 Market Outlook 060712

1/13

Market OutlookJuly 6, 2012

www.angelbroking.com


Dealers DiaryThe Indian markets are expected to open flat tracing SGX Nifty which is trading flat

in early trade. Most of the Asian shares are trading lower in the opening trade.

US markets posted a weak performance on Thursday, despite a rate cuts

announced by European Central Bank (ECB), Peoples Bank of China as the newswas largely expected. Markets also didnt react positively to a report from ADP

showing stronger than expected private sector job growth, and a Labor Department

report showing an unexpected drop in weekly jobless claims. During the day, the

European Central Bank cut interest rates to a record low of 0.75%, while the

People's Bank of China also lowered rates for the second time in two months.

However, the Bank of England left interest rates unchanged but decided to raise

the size of its asset purchase plan by GBP 50bn. The performance of European

markets was mixed.

Meanwhile, Indian markets rose modestly on Thursday on expectations of

monetary stimulus by central banks across the globe. Further, expectations ofmeasures from the government for revival of the slowing economy aided gains on

the domestic bourses.

Markets TodayThe trend deciding level for the day is 17,508 / 5,317 levels. If NIFTY trades above

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

up to 17,593 17,648 / 5,344 5,361 levels. However, if NIFTY trades below

17,508 / 5,317 levels for the first half-an-hour of trade then it may correct up to

17,454 17,369 / 5,300 5,272 levels.

SENSEX 17,369 17,454 17,508 17,593 17,648

NIFTY 5,272 5,300 5,317 5,344 5,361

News Analysis ECB cuts benchmark rate to record low of 0.75%, Deposit rates to zero China cuts interest rates again Coal India reports robust growth in production Bajaj Auto cuts product prices in Sri Lanka to revive salesRefer detailed news analysis on the following page

Net Inflows (July 4, 2012)

FII 2,185 1,884 301 861 46,855

MFs 399 584 (185) (406) (6,252)

FII Derivatives (July 5, 2012)

Index Futures 938 814 124 13,929

Stock Futures 963 1,318 (355) 24,940

Gainers / Losers

Shree Renuka Sug 35 5.0 Bajaj Holdings 796 (3.4)

Apollo Tyres 81 4.6 Asian Paints 3,781 (2.5)

MMTC 780 4.3 ONGC 279 (2.0)

GMR Infra 27 3.9 IFCI 40 (1.8)

Manappuram Finance 31 3.6 Bajaj Finserv 685 (1.8)

BSE Sensex 0.4 75.9 17,539

Nifty 0.5 24.8 5,327

MID CAP 0.9 56.4 6,349

SMALL CAP 1.6 110.0 6,837

BSE HC 0.5 31.6 6,942

BSE PSU 0.1 9.0 7,402

BANKEX 1.0 122.7 12,244

AUTO 0.6 58.1 9,531

METAL (0.4) (43.9) 11,123

OIL & GAS (0.1) (11.7) 8,089

BSE IT 0.0 1.3 5,700

Dow Jones (0.4) (47.2) 12,897NASDAQ 0.0 0.0 2,976

FTSE 0.1 8.2 5,693

Nikkei (0.3) (24.4) 9,080

Hang Seng 0.5 99.4 19,809

Straits Times 0.8 22.7 2,971

Shanghai Com (1.2) (26.0) 2,201

INFY (3.2) (1.5) $44.6

WIT (4.7) (0.4) $8.9IBN 0.6 0.2 $33.5

HDB (1.0) (0.4) $33.6

Advances 1,921 1077

Declines 988 403

Unchanged 105 55

BSE 2,926

NSE 10,009


2/13



In its policy meeting today, ECB lowered the main refinancing rates by 25bp to

record low of 0.75% and also cut its deposit rate to zero from 0.25% and its

marginal lending rate to 1.5% from 1.75%. The ECB was under pressure to ease

monetary conditions as Europes debt crisis was curbing growth across the

continent (in fact According to European commission, Euro economy is expected to

shrink 0.3% in current year) and damping the global outlook. ECB decision of

cutting the deposits rate (which was partly responsible for higher market borrowing

costs) along with the benchmark rates will lower the cost of borrowing and could

build on the confidence boost euro-area governments delivered last week when

they took steps toward a deeper economic union.

Chinas central bank has cut its benchmark interest rate by 31bp to 6% and

lowered its deposit rate by 25bp to 3%. In addition to cutting lending and deposit

rates, the central bank also reduced the floor for interest rates to 70% of

benchmark rates, from 80% previously. China is due to release second quarter

data next week which is expected to show weakest economic performance since

the 2008-09 financial crisis. Hence, the interest rate cut is to bolster the slowing

economy. The lending rate cut is to prevent a further slump in manufacturing and

a collapse in property prices.

Coal India reported that it achieved its production target for 1QFY2013. Its

production grew by 6.4% yoy to 102mn tonnes. Its offtake also grew by 6.5% yoy

to 113mn tonnes. Supplies to power companies grew by 7.6% yoy to 80mn

tonnes. Given the constraints of infrastructural bottlenecks, we believe it will be

challenging for Coal India to meet its offtake target of 477mn tonnes for FY2013.

Separately, media reports suggest that Coal India has offered power producers

additional 70mn tonnes inventory of coal (lying at its pitheads). However, power

producers would be responsible for lifting coal from its pitheads. Thus far, Sterlite

Industries, Adani Power and China Light and Power have responded to CoalIndias offers. The inventory build up at Coal Indias mines is on account of lack of

logistical infrastructure. Hence, even power producers are likely to face logistical

challenges to lift the inventory from Coal Indias mines in our view.


3/13



According to media reports, Bajaj Auto (BJAUT) has cut the prices of two-wheelers

(2W) and three-wheelers (3W) in Sri Lanka to revive declining sales post the import

duty hike by the government. While the 2W prices have been cut by 5-14%

depending on the model; 3W prices have been slashed by 10%. This follows asteep hike in product prices (2W and 3W prices were increased by ~29% and

~32%, respectively) carried out by the company in April 2012 post the increase in

import duty. The burden of the price cut will be shared by BJAUT and its dealers;

however the ratio is not yet known.

Post the hike in import duty since April 2012, the company has witnessed almost

zero sales to Sri Lanka (against average monthly run-rate of ~10,000 units each

of 2W and 3W) which has considerably impacted the exports performance of the

company. As a result, export sales which grew by a robust 31% in FY2012

witnessed a decline of 3% during 1QFY2013. While, we expect the 2W and 3Wsales of the company to witness gradual revival post the recent price cuts

announced by the company, it will negatively impact the net average realization of

the company and hence the operating margins. We expect the companys

operating margins to decline ~50bp in FY2013 led by competitive pressures in the

domestic markets and disruption in exports. At `1,555, the stock is trading at

13.9x and 12.6x its FY2013E and FY2014E earnings respectively.

Economic and Political News

Assocham chief meets Montek, wants GAAR put in cold storage India has scope to cut government borrowing: Finmin official SEBI opposes Government's plan to bring back entry load Inter-ministerial panel to review steel projects on July 25

Corporate News

R-com unit files prelim prospectus for Singapore IPO Grasim acquires Canada's Terrace Bay Pulp for $300 million India Cement promoters hike stake to 28.2% KFA offers to sale pledged assetsSource: Economic Times, Business Standard, Business Line, Financial Express, Mint


4/13

Date Company

July 10, 2012 IndusInd Bank

July 11, 2012 HDFC, Cera Sanitaryware Ltd

July 12, 2012 Infosys

July 13, 2012 HDFC Bank

July 14, 2012

July 15, 2012 Mindtree

July 16, 2012 Exide Industries, South Ind.Bank

July 17, 2012 Axis Bank

July 18, 2012 Bajaj Auto

July 19, 2012 Kotak Mah. Bank, Dr Reddy's

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

Jul 06, 2012 US Change in Nonfarm payrolls Thousands Jun 69.00 90.00

US Unnemployment rate % Jun 8.20 8.20

Jul 09, 2012 China Consumer Price Index (YoY) % Change Jun 3.00 2.30

Jul 10, 2012 UK Industrial Production (YoY) % Change May (1.00) --

China Exports YoY% % Change Jun 15.30 10.60

Jul 12, 2012 India Industrial Production YoY % Change May 0.10 --

Jul 13, 2012 IndiaMonthly Wholesale PricesYoY%

% Change Jun 7.55 --

US Producer Price Index (mom) % Change Jun (1.00) (0.60)China Industrial Production (YoY) % Change Jun 9.60 9.90

China Real GDP (YoY) % Change 2Q 8.10 7.80

Jul 16, 2012 Euro Zone Euro-Zone CPI (YoY) % Jun 2.40 --

Jul 17, 2012 UK CPI (YoY) % Change Jun 2.80 --

US Industrial Production % Jun (0.09) --

US Consumer price index (mom) % Change Jun (0.30) --

Jul 18, 2012 US Housing Starts Thousands Jun 708.00 --

US Building permits Thousands Jun 784.00 --

UK Jobless claims change % Change Jun 8.10 --

Jul 19, 2012 US Existing home sales Millions Jun 4.55 --

Jul 23, 2012 Euro ZoneEuro-Zone ConsumerConfidence

Value Jul A (19.80) --

Jul 24, 2012 Germany PMI Services Value Jul A 49.90 --

Germany PMI Manufacturing Value Jul A 45.00 --

Jul 25, 2012 UK GDP (YoY) % Change 2Q A (0.20) --

US New home sales Thousands Jun 369.00 --

Jul 27, 2012 US GDP Qoq (Annualised) % Change 2Q A 1.90 --



July 06, 2012

Market Outlook


5/13

Market StrategyJuly 6, 2012


Macro watch

Exhibit 1:Quarterly GDP trends

5.9

7.5

9.8

7.4

9.4

8.5

7.68.2

9.2

8.0

6.76.1

5.3

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

(%)

Source: CSO, Angel Research

Exhibit 2:IIP trends

6.2

9.5

3.7 3.42.5

(5.0)

6.0

2.7

1.0

4.1

(3.2)

0.1

(6.0)

(4.0)

(2.0)

-

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 3:Monthly WPI inflation trends

9.5 9.4 9.810.0 9.9 9.5

7.76.9

7.4 7.7 7.2 7.6

0.0

2.0

4.0

6.0

8.0

10.0

12.0

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

(%)

Source: MOSPI, Angel Research

Exhibit 4:Manufacturing and services PMI

48.0

50.0

52.0

54.0

56.0

58.0

60.0

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

Jun-1

2

Mfg. PMI Services PMI

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

Exhibit 5:Exports and imports growth trends

(15.0)

0.0

15.0

30.0

45.0

60.0

75.0

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

Exports yoy growth Impor ts yoy growth(%)


Exhibit 6:Key policy rates

4.00

5.00

6.00

7.00

8.00

9.00

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

Jun-1

2

Repo rate Reverse Repo rate CRR(%)

Source: RBI, Angel Research


6/13

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 139 - 2,697 1,432 1,647 14.7 14.7 7.0 8.0 19.8 17.3 4.2 3.6 22.8 22.3 1.9 1.6

United Phosphorus Buy 128 183 5,887 8,191 8,764 16.5 16.5 17.1 18.3 7.5 7.0 1.2 1.1 17.5 16.2 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Accumulate 310 345 2,651 2,715 3,041 15.3 15.3 29.2 32.8 10.7 9.5 2.5 2.0 26.0 23.3 0.9 0.8

Apollo Tyres Buy 81 100 4,060 13,699 15,184 10.5 10.2 12.1 13.3 6.7 6.1 1.2 1.0 19.7 18.4 0.5 0.4

Ashok Leyland Buy 26 33 6,865 14,798 16,687 9.6 9.6 2.4 3.0 10.6 8.7 2.1 1.9 14.8 16.5 0.5 0.4

Automotive Axle Accumulate 446 514 673 1,211 1,387 12.1 11.7 50.3 57.1 8.9 7.8 2.2 1.8 27.8 25.7 0.6 0.5Bajaj Auto Accumulate 1,555 1,787 45,005 21,665 24,334 18.6 18.4 111.7 123.2 13.9 12.6 5.5 4.4 43.8 38.5 1.7 1.4

Bharat Forge Buy 317 372 7,389 7,173 7,998 16.3 16.5 22.3 26.6 14.2 12.0 2.8 2.3 21.0 21.0 1.1 0.9

Bosch India Neutral 9,036 - 28,371 9,106 10,255 19.4 19.3 410.2 460.3 22.0 19.6 4.9 4.0 22.1 20.4 2.8 2.4

CEAT Buy 101 164 345 5,067 5,631 8.0 7.6 39.4 41.0 2.6 2.5 0.4 0.4 18.8 16.5 0.3 0.3

Exide Industries Accumulate 138 146 11,751 5,787 6,595 15.5 17.0 7.1 9.0 19.4 15.4 3.4 2.9 18.6 20.3 1.7 1.4

FAG Bearings Accumulate 1,520 1,557 2,526 1,492 1,703 18.8 18.5 115.3 129.8 13.2 11.7 2.8 2.3 23.5 21.6 1.3 1.1

Hero Motocorp Buy 2,122 2,473 42,366 25,970 29,772 15.0 15.5 139.7 154.5 15.2 13.7 7.2 5.4 54.7 44.9 1.3 1.0

JK Tyre Buy 101 135 416 7,950 8,904 5.5 6.0 25.1 38.6 4.0 2.6 0.5 0.4 12.1 16.4 0.3 0.3

Mahindra and Mahindra Buy 723 824 44,375 35,881 40,746 10.0 10.0 47.5 53.2 15.2 13.6 3.0 2.6 21.3 20.5 0.9 0.8

Maruti Buy 1,241 1,364 35,845 39,959 46,670 6.0 7.0 71.4 90.9 17.4 13.6 2.1 1.9 12.8 14.4 0.6 0.6

Motherson Sumi Buy 165 216 6,465 23,342 26,366 7.8 8.2 13.3 18.0 12.4 9.2 3.0 2.3 26.2 28.4 0.5 0.4

Subros Neutral 35 - 209 1,244 1,402 8.4 8.3 4.5 5.1 7.8 6.8 0.8 0.7 9.9 11.0 0.4 0.4

Tata Motors Buy 240 305 63,963 191,303 211,004 13.0 12.9 40.7 43.8 5.9 5.5 2.0 1.7 36.0 33.1 0.4 0.4

TVS Motor Buy 37 42 1,758 7,442 8,198 6.2 6.1 4.8 5.2 7.8 7.1 1.3 1.2 18.2 17.9 0.2 0.2

Capital Goods

ABB* Sell 803 498 17,006 8,760 10,023 7.6 7.5 18.2 20.7 44.0 38.7 5.9 5.3 14.4 14.6 1.9 1.7BGR Energy Neutral 316 - 2,282 4,195 4,837 11.0 11.0 30.1 32.4 10.5 9.8 1.8 1.6 18.4 17.6 1.0 1.0

BHEL Neutral 235 - 57,604 46,344 46,916 18.3 18.6 23.5 24.1 10.0 9.8 2.0 1.7 21.3 18.9 1.1 1.1

Blue Star Neutral 182 - 1,634 3,047 3,328 5.4 6.9 9.6 16.2 18.9 11.2 3.7 3.0 20.7 29.7 0.6 0.5

Crompton Greaves Buy 131 142 8,416 12,451 14,265 7.9 8.3 8.0 9.5 16.4 13.9 2.2 2.0 13.9 14.9 0.7 0.6

Jyoti Structures Buy 45 67 370 2,622 2,801 10.6 11.0 10.9 13.4 4.1 3.4 0.5 0.5 13.7 14.9 0.3 0.3

KEC International Buy 61 73 1,572 6,686 7,200 8.5 8.8 10.6 12.2 5.8 5.0 1.1 0.9 25.9 24.0 0.4 0.4

LMW Buy 1,719 1,992 1,936 2,369 2,727 11.7 11.7 143.4 166.0 12.0 10.4 2.0 1.8 17.4 18.4 0.3 0.2

Thermax Neutral 499 - 5,941 5,514 5,559 9.8 9.6 29.7 28.4 16.8 17.6 3.2 2.8 20.2 16.9 0.9 0.9


July 06, 2012

Market Outlook

Stock Watch


7/13



Cement

ACC Neutral 1,297 - 24,343 11,096 12,607 21.0 21.7 76.1 82.9 17.0 15.6 3.2 2.9 19.3 19.3 1.9 1.6

Ambuja Cements Neutral 175 - 26,910 10,205 11,659 24.6 24.2 10.8 12.0 16.2 14.5 3.4 3.0 19.7 19.8 2.2 1.8

India Cements Neutral 86 - 2,645 4,364 4,791 18.9 19.1 9.2 11.4 9.3 7.6 0.7 0.7 8.0 9.5 0.5 0.5

J K Lakshmi Cements Buy 82 79 1,002 1,938 2,246 19.1 20.1 15.2 16.8 5.4 4.9 0.7 0.7 13.8 14.0 0.6 0.9

Madras Cements Neutral 160 - 3,797 3,444 3,786 25.5 24.9 14.6 17.1 11.0 9.4 1.6 1.4 15.6 16.0 1.7 1.5

Shree Cements Neutral 3,053 - 10,637 5,519 6,293 24.5 23.7 156.6 225.3 19.5 13.6 4.8 4.1 22.3 26.0 1.6 1.3

UltraTech Cement Neutral 1,544 - 42,317 20,099 22,642 21.7 22.9 89.6 1 04.7 17.2 14.7 2.8 2.5 17.7 17.9 1.9 1.8Construction

Ashoka Buildcon Buy 228 273 1,200 2,014 2,293 22.4 22.4 22.6 26.7 10.1 8.5 1.1 1.0 11.4 11.9 2.4 2.7

Consolidated Co Neutral 16 - 296 2,489 2,755 7.0 7.8 3.0 4.0 5.4 4.0 0.5 0.4 8.7 10.8 0.3 0.3

Hind. Const. Neutral 22 - 1,328 4,239 4,522 11.1 11.8 (1.8) (0.8) (12.2) (28.1) 1.3 1.4 (9.5) (4.7) 1.3 1.2

IRB Infra Buy 135 166 4,495 3,821 4,582 42.3 40.2 15.0 16.9 9.0 8.0 1.4 1.2 16.1 15.8 2.7 2.5

ITNL Buy 185 265 3,586 6,619 7,925 23.8 23.3 22.9 27.8 8.1 6.7 1.2 1.0 15.5 16.4 2.2 2.1

IVRCL Infra Buy 55 61 1,458 5,510 6,722 8.8 9.0 2.5 4.6 21.6 11.9 0.7 0.7 3.4 5.8 0.7 0.7

Jaiprakash Asso. Buy 78 88 16,618 15,259 17,502 25.7 24.7 4.2 5.0 18.4 15.6 1.5 1.4 8.5 9.3 2.4 2.1

Larsen & Toubro Accumulate 1,428 1,553 87,508 59,559 69,089 12.1 11.5 78.4 85.2 18.2 16.8 3.0 2.7 16.1 15.3 1.6 1.4

Madhucon Proj Buy 41 56 303 2,206 2,502 10.7 10.7 4.6 4.7 8.9 8.8 0.5 0.4 5.2 5.0 0.7 0.7

Nagarjuna Const. Neutral 45 - 1,155 5,453 6,169 8.1 8.5 1.6 1.9 27.4 23.3 0.5 0.5 1.8 2.1 0.7 0.7

Patel Engg. Neutral 101 - 708 3,609 3,836 13.1 13.1 14.0 14.6 7.2 7.0 0.4 0.4 6.3 6.1 1.0 1.1

Punj Lloyd Neutral 56 - 1,866 11,592 12,993 8.4 8.4 1.8 3.2 31.2 17.6 0.6 0.6 2.0 3.4 0.6 0.6

Sadbhav Engg. Buy 144 182 2,162 2,789 3,147 10.6 10.7 8.4 10.4 17.0 13.8 2.3 2.0 15.0 15.6 0.9 0.9

Simplex Infra Buy 228 265 1,128 6,732 7,837 8.1 8.4 23.5 29.4 9.7 7.8 0.9 0.8 9.6 11.0 0.5 0.5

FinancialsAllahabad Bank Neutral 153 - 7,653 7,467 8,685 3.2 3.3 37.5 41.5 4.1 3.7 0.7 0.6 18.1 17.4 - -

Andhra Bank Reduce 119 107 6,667 5,225 6,024 3.3 3.3 22.7 25.4 5.3 4.7 0.8 0.7 16.0 15.8 - -

Axis Bank Buy 1,044 1,489 43,250 16,488 20,297 3.2 3.3 118.4 145.2 8.8 7.2 1.7 1.4 20.3 21.1 - -

Bank of Baroda Buy 734 921 28,720 16,157 19,475 2.7 2.7 123.7 148.3 5.9 5.0 1.0 0.8 17.3 18.1 - -

Bank of India Accumulate 354 388 20,332 13,657 15,902 2.5 2.6 59.5 70.6 6.0 5.0 1.0 0.8 16.2 16.9 - -

Bank of Maharashtra Accumulate 51 52 2,977 3,506 3,925 3.2 3.2 10.2 11.9 5.0 4.3 0.7 0.6 15.3 15.8 - -

Canara Bank Buy 431 492 19,087 12,296 14,445 2.4 2.5 81.5 92.2 5.3 4.7 0.9 0.8 16.4 16.3 - -

Central Bank Reduce 84 72 6,183 7,001 8,211 2.5 2.6 14.0 20.6 6.0 4.1 0.9 0.8 11.0 14.5 - -


July 06, 2012

Market Outlook

Stock Watch


8/13



Financials

Corporation Bank Accumulate 431 465 6,384 5,294 6,070 2.3 2.3 106.3 110.1 4.1 3.9 0.7 0.6 17.7 16.2 - -

Dena Bank Accumulate 102 106 3,562 3,170 3,577 2.9 2.9 22.8 25.3 4.5 4.0 0.7 0.6 17.2 16.6 - -

Federal Bank Neutral 454 - 7,764 2,736 3,165 3.4 3.4 49.3 57.4 9.2 7.9 1.2 1.1 13.9 14.5 - -

HDFC Neutral 675 - 100,532 7,372 8,812 3.6 3.5 31.5 37.7 21.4 17.9 4.3 3.8 34.8 32.1 - -

HDFC Bank Neutral 583 - 137,244 22,076 27,921 4.3 4.4 28.7 35.8 20.3 16.3 3.9 3.3 20.7 21.9 - -

ICICI Bank Buy 921 1,169 105,847 22,368 26,857 2.8 2.9 68.2 80.4 13.5 11.5 1.6 1.5 14.2 15.4 - -

IDBI Bank Buy 99 113 12,592 8,152 9,907 1.9 2.1 19.7 24.1 5.0 4.1 0.7 0.6 13.6 15.0 - -Indian Bank Neutral 192 - 8,237 6,417 7,292 3.5 3.5 40.2 43.1 4.8 4.4 0.8 0.7 17.9 16.9 - -

IOB Accumulate 87 91 6,894 7,578 8,662 2.6 2.7 17.2 22.5 5.0 3.8 0.6 0.5 12.1 14.3 - -

J & K Bank Neutral 969 - 4,698 2,525 2,858 3.5 3.5 175.8 183.1 5.5 5.3 1.0 0.9 19.3 17.5 - -

LIC Housing Finance Accumulate 274 286 13,828 2,108 2,607 2.6 2.6 24.5 30.6 11.2 9.0 2.1 1.8 20.1 21.4 - -

Oriental Bank Accumulate 261 269 7,603 6,497 7,533 2.8 2.8 53.4 63.9 4.9 4.1 0.7 0.6 13.3 14.3 - -

Punjab Natl.Bank Buy 846 1,050 28,678 20,142 23,929 3.2 3.3 153.3 174.3 5.5 4.9 1.0 0.9 18.3 18.0 - -

South Ind.Bank Neutral 25 - 2,877 1,447 1,664 2.8 2.7 3.8 4.1 6.7 6.2 1.2 1.1 19.5 18.2 - -

St Bk of India Accumulate 2,232 2,443 149,791 67,783 78,208 3.7 3.6 226.0 264.2 9.9 8.5 1.6 1.4 17.7 18.1 - -

Syndicate Bank Accumulate 110 118 6,624 7,176 8,299 3.1 3.1 25.1 29.1 4.4 3.8 0.7 0.6 17.6 17.8 - -

UCO Bank Reduce 83 71 5,507 5,642 6,438 2.5 2.5 16.4 17.6 5.1 4.7 0.9 0.8 16.2 15.4 - -

Union Bank Buy 213 256 11,716 10,623 12,404 3.0 3.0 42.5 49.6 5.0 4.3 0.8 0.7 16.9 17.2 - -

United Bank Buy 64 78 2,310 3,599 4,212 2.8 3.0 18.2 22.3 3.5 2.9 0.5 0.5 15.0 16.2 - -

Vijaya Bank Reduce 61 52 3,008 2,695 3,097 2.2 2.3 9.6 12.0 6.3 5.1 0.8 0.7 12.0 13.6 - -

Yes Bank Buy 357 454 12,643 3,250 4,261 2.8 2.9 34.1 42.8 10.5 8.3 2.2 1.8 23.2 23.9 - -

FMCG

Asian Paints Neutral 3,781 - 36,268 11,423 13,309 16.3 16.3 125.3 148.4 30.2 25.5 10.3 8.0 38.0 35.4 3.2 2.7Britannia Buy 536 633 6,407 5,835 6,824 6.3 6.7 20.7 27.5 25.9 19.5 10.1 7.5 42.7 44.3 1.1 0.9

Colgate Neutral 1,186 - 16,133 3,007 3,417 21.1 22.1 38.2 43.8 31.0 27.1 36.9 29.0 130.2 119.9 5.3 4.6

Dabur India Neutral 115 - 19,973 5,878 6,799 16.8 17.0 4.2 4.9 27.7 23.3 10.0 8.2 39.3 42.0 3.4 2.9

GlaxoSmith Con* Neutral 2,656 - 11,170 3,124 3,663 17.1 17.6 103.0 123.3 25.8 21.6 8.0 6.4 34.0 32.9 3.4 2.8

Godrej Consumer Neutral 580 - 19,742 5,973 7,000 18.4 18.6 22.8 27.2 25.4 21.4 7.0 5.6 31.3 38.4 3.4 2.9

HUL Neutral 440 - 95,151 25,350 29,309 14.3 14.4 14.1 16.4 31.2 26.9 23.3 18.2 82.7 76.2 3.7 3.2

ITC Neutral 250 - 195,500 29,588 34,063 35.4 35.8 9.3 10.9 26.8 23.0 8.6 7.1 35.2 33.8 6.6 5.6


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FMCG

Marico Neutral 183 - 11,769 4,667 5,427 12.8 12.9 6.6 8.1 27.5 22.5 7.4 5.8 30.0 28.8 2.6 2.1

Nestle* Neutral 4,469 - 43,090 8,731 10,539 21.0 21.4 114.4 143.0 39.1 31.2 23.6 16.2 71.1 61.4 5.0 4.1

Tata Global Buy 119 136 7,387 7,011 7,711 9.7 10.0 6.3 7.5 19.1 16.0 1.8 1.8 9.5 10.9 0.9 0.8

IT

HCL Tech Buy 492 562 34,070 24,029 26,633 18.3 17.2 39.6 43.2 12.4 11.4 2.8 2.4 22.9 21.0 1.3 1.2

Hexaware Neutral 125 - 3,687 1,921 2,178 20.6 20.0 10.4 11.4 12.0 10.9 2.9 2.5 24.7 23.4 1.7 1.4

Infosys Accumulate 2,480 2,747 142,421 39,364 42,981 32.2 30.5 161.6 171.7 15.4 14.5 3.5 3.0 22.9 20.5 3.0 2.6Infotech Enterprises Accumulate 172 177 1,913 1,825 2,008 17.5 17.1 16.9 18.7 10.1 9.2 1.4 1.2 13.7 13.3 0.6 0.5

KPIT Cummins Neutral 123 - 2,196 2,145 2,316 16.0 14.8 9.9 11.3 12.4 10.9 2.4 2.0 20.8 19.1 0.9 0.8

Mahindra Satyam Accumulate 83 87 9,715 7,492 8,038 17.0 16.3 8.1 8.3 10.2 9.9 1.4 1.3 14.1 12.6 0.8 0.7

Mindtree Accumulate 695 710 2,830 2,324 2,533 18.3 16.9 62.4 64.5 11.2 10.8 2.3 1.9 21.2 18.0 0.9 0.8

Mphasis Neutral 390 - 8,198 5,704 6,009 18.6 17.7 36.0 37.1 10.9 10.5 1.5 1.3 14.0 12.6 0.9 0.7

NIIT Buy 44 52 724 1,162 1,304 14.8 15.1 7.1 8.8 6.2 5.0 1.0 0.9 16.7 18.4 0.4 0.3

Persistent Neutral 395 - 1,581 1,187 1,274 26.7 26.0 34.5 42.6 11.5 9.3 1.7 1.4 14.4 15.4 1.0 0.9

TCS Neutral 1,240 - 242,764 60,787 68,558 30.1 29.2 65.5 73.6 19.0 16.8 5.9 4.8 31.3 28.2 3.9 3.4

Tech Mahindra Neutral 736 - 9,385 6,282 6,477 17.5 16.5 82.9 85.0 8.9 8.7 1.9 1.6 21.6 18.4 1.4 1.3

Wipro Accumulate 396 451 97,465 44,597 49,033 20.3 20.5 26.6 30.1 14.9 13.2 2.9 2.5 19.5 18.9 1.9 1.6

Media

D B Corp Buy 202 269 3,705 1,638 1,851 25.8 26.6 13.5 16.1 15.0 12.5 3.3 2.8 23.9 24.2 2.2 1.9

HT Media Buy 100 148 2,338 2,224 2,509 16.6 17.2 8.6 10.8 11.6 9.2 1.4 1.2 12.9 14.3 0.6 0.5

Jagran Prakashan Buy 88 125 2,794 1,521 1,698 22.6 23.1 6.2 6.4 14.4 13.7 3.5 3.1 20.7 23.9 2.1 1.8

PVR Neutral 163 - 423 625 732 16.5 15.7 11.9 13.3 13.7 12.3 1.4 1.2 11.9 12.0 1.0 0.9

Sun TV Network Neutral 317 - 12,502 2,002 2,296 77.1 76.7 18.9 22.1 16.8 14.4 4.3 3.7 27.7 28.3 5.4 4.5Metals & Mining

Bhushan Steel Reduce 474 429 10,069 11,408 13,773 31.0 30.0 53.7 60.8 8.8 7.8 1.3 1.1 15.3 14.9 2.6 2.2

Coal India Neutral 349 - 220,410 68,841 74,509 25.3 25.3 24.1 26.1 14.5 13.4 4.0 3.3 30.4 26.8 2.3 2.0

Electrosteel Castings Buy 19 22 670 1,984 2,074 11.2 12.6 2.0 2.7 9.5 7.2 0.4 0.1 4.2 5.5 0.5 0.5

Hind. Zinc Accumulate 125 139 52,986 13,043 14,223 51.8 52.8 14.8 16.6 8.5 7.6 1.7 1.4 21.2 19.9 2.3 1.7

Hindalco Neutral 125 - 23,980 83,212 91,057 9.0 9.9 13.7 18.1 9.2 6.9 0.7 0.6 7.9 9.6 0.5 0.5

JSW Steel Neutral 722 - 16,115 39,592 44,910 18.0 17.7 74.7 88.9 9.7 8.1 0.9 0.8 10.7 11.6 0.7 0.7

MOIL Neutral 288 - 4,841 1,007 1,091 56.6 56.9 29.4 31.9 9.8 9.0 1.8 1.6 19.0 18.2 2.5 2.1

Monnet Ispat Buy 392 447 2,522 3,115 3,748 22.1 25.1 59.1 66.8 6.6 5.9 0.9 0.8 15.6 15.3 1.5 1.1


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Metals & Mining

Nalco Reduce 62 54 15,927 8,474 9,024 12.6 16.2 2.6 3.6 24.2 17.2 1.3 1.3 5.6 7.5 1.4 1.3

NMDC Neutral 198 - 78,541 11,959 13,062 78.2 78.6 19.1 20.9 10.4 9.5 2.6 2.1 27.1 24.4 4.1 3.5

SAIL Neutral 94 - 38,930 50,914 60,785 14.6 15.1 9.4 10.5 10.0 9.0 0.9 0.8 9.2 9.6 1.2 1.1

Sesa Goa Neutral 202 - 17,586 9,067 9,316 35.7 35.5 44.5 44.3 4.6 4.6 1.0 0.8 23.5 19.5 0.4 0.1

Sterlite Inds Buy 110 123 36,883 45,294 48,059 25.7 25.3 17.3 18.0 6.3 6.1 0.7 0.7 12.0 11.2 0.4 0.3

Tata Steel Accumulate 451 499 43,826 143,088 148,011 10.9 12.1 53.9 66.0 8.4 6.8 1.0 0.9 12.2 13.4 0.6 0.6

Oil & GasCairn India Buy 315 372 60,022 15,513 16,074 74.0 69.7 51.1 48.6 6.2 6.5 1.0 0.9 18.3 14.8 2.6 1.9

GAIL Neutral 361 - 45,767 50,472 55,502 15.3 15.6 35.4 37.0 10.2 9.7 1.8 1.6 19.0 17.2 0.1 -

ONGC Accumulate 279 321 238,613 156,331 159,043 37.7 36.3 31.3 32.6 8.9 8.6 1.6 1.4 18.7 17.3 1.2 1.1

Reliance Industries Neutral 739 - 241,826 316,404 319,119 11.2 12.0 63.5 68.7 11.6 10.8 1.2 1.1 11.7 11.4 0.7 0.7

Pharmaceuticals

Alembic Pharma Buy 59 91 1,106 1,624 1,855 14.2 15.6 6.6 9.1 8.9 6.5 2.2 1.7 27.5 29.2 0.9 0.7

Aurobindo Pharma Buy 115 156 3,357 5,243 5,767 14.6 14.6 11.8 12.6 9.8 9.2 1.0 0.4 11.4 10.9 0.8 0.6

Aventis* Neutral 2,165 - 4,985 1,482 1,682 15.5 15.5 95.0 104.0 22.8 20.8 4.0 3.1 18.6 17.0 3.1 2.7

Cadila Healthcare Buy 764 953 15,642 6,196 7,443 18.5 19.5 37.6 47.7 20.3 16.0 4.5 3.6 26.8 27.5 2.5 2.0

Cipla Buy 324 379 26,051 7,687 8,804 21.4 21.4 16.5 18.9 19.7 17.2 3.1 2.7 16.7 16.8 3.2 2.8

Dr Reddy's Neutral 1,630 - 27,657 10,696 11,662 20.7 21.0 83.7 92.9 19.5 17.6 4.0 3.4 22.4 21.0 2.7 2.5

Dishman Pharma Buy 68 92 549 1,280 1,536 17.8 17.8 9.2 11.3 7.4 6.0 0.6 0.5 7.7 8.5 1.1 0.9

GSK Pharma* Neutral 2,010 - 17,022 2,651 2,993 31.7 31.2 76.0 82.4 26.4 24.4 7.6 6.6 30.8 29.0 5.5 4.7

Indoco Remedies Buy 56 82 519 685 837 15.2 15.2 7.4 8.9 7.6 6.3 1.1 1.0 15.9 16.3 0.9 0.7

Ipca labs Buy 372 435 4,691 2,850 3,474 20.3 20.3 31.9 36.3 11.7 10.3 3.6 2.9 26.2 26.8 1.7 1.4

Lupin Buy 540 647 24,141 8,426 10,082 19.7 20.0 27.4 32.4 19.7 16.7 4.7 3.8 27.0 25.2 2.8 2.2Orchid Chemicals Buy 126 178 887 2,117 2,434 17.7 17.7 16.7 22.2 7.5 5.7 0.7 0.6 9.5 11.5 1.0 0.9

Ranbaxy* Neutral 510 - 21,536 12,046 11,980 18.0 15.8 35.7 29.8 14.3 17.1 5.4 4.4 43.1 28.1 1.7 1.7

Sun Pharma Neutral 636 - 65,451 9,272 11,080 38.6 38.0 22.7 22.6 28.0 28.1 4.7 4.2 17.9 15.6 5.7 4.5

Power

CESC Buy 309 342 3,854 5,084 5,512 24.2 23.8 45.2 48.5 6.8 6.4 0.7 0.7 11.2 10.9 1.2 1.2

GIPCL Buy 66 77 1,001 1,557 1,573 28.8 28.5 10.4 10.9 6.4 6.1 0.6 0.6 10.4 10.2 1.1 0.9

NTPC Neutral 162 - 133,288 74,766 86,549 23.1 23.4 12.4 14.1 13.0 11.5 1.6 1.5 13.0 13.5 2.5 2.3

Real Estate

Anant Raj Buy 54 78 1,585 657 875 52.0 56.1 8.4 12.7 6.4 4.2 0.4 0.4 6.3 8.9 3.4 2.6

DLF Neutral 215 - 36,440 9,878 12,033 44.7 46.1 9.6 13.4 22.4 16.0 1.4 1.4 6.4 8.7 5.9 4.9


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Real Estate

HDIL Buy 91 115 3,815 2,441 3,344 55.1 48.2 22.7 26.6 4.0 3.4 0.3 0.3 8.8 9.4 3.3 2.5

MLIFE Accumulate 332 376 1,354 814 897 26.9 27.0 31.3 33.9 10.6 9.8 1.1 1.0 10.2 10.1 2.0 1.8

Telecom

Bharti Airtel Neutral 324 - 123,021 80,076 86,613 32.8 33.5 15.5 19.8 21.0 16.3 2.2 2.0 10.5 11.9 2.1 1.8

Idea Cellular Neutral 86 - 28,431 23,209 26,063 26.2 27.5 3.3 4.9 26.1 17.4 2.0 1.8 7.7 10.3 1.6 1.3

Rcom Neutral 69 - 14,180 22,125 23,734 31.9 32.0 4.5 5.9 15.3 11.8 0.4 0.4 2.5 3.1 2.0 1.7

zOthersAbbott India Accumulate 1,513 1,628 3,216 1,661 1,918 9.7 12.0 60.7 90.4 24.9 16.7 5.1 4.1 22.0 27.3 1.7 1.4

Bajaj Electricals Buy 199 246 1,985 3,569 4,172 8.6 9.2 17.3 22.3 11.5 8.9 2.5 2.1 22.9 25.3 0.5 0.5

Cera Sanitaryware Accumulate 282 306 357 395 469 15.4 16.6 30.0 38.0 9.4 7.4 2.0 1.6 23.7 24.5 1.0 0.9

Cravatex Buy 625 785 162 302 364 5.7 6.0 49.0 71.0 12.8 8.8 3.8 2.7 29.8 30.7 0.6 0.5

CRISIL Neutral 1,061 - 7,441 982 1,136 34.3 34.3 34.3 40.0 30.9 26.5 14.0 11.2 50.9 46.9 7.2 6.1

Finolex Cables Buy 43 61 661 2,334 2,687 8.8 9.3 7.6 10.2 5.7 4.2 0.7 0.6 13.7 16.1 0.2 0.1

Force Motors Buy 484 615 631 2,346 2,753 5.8 6.7 44.0 68.0 11.0 7.1 0.5 0.5 4.8 7.0 0.2 0.2

Goodyear India Buy 336 374 774 1,511 1,692 7.9 9.0 31.5 41.3 10.7 8.1 2.1 1.8 21.2 23.5 0.3 0.2

Graphite India Buy 91 124 1,776 2,158 2,406 18.1 18.9 12.4 14.0 7.3 6.5 1.0 0.9 14.0 14.3 0.9 0.8

Greenply Industries Buy 196 309 472 1,925 2,235 10.6 10.9 29.6 44.1 6.6 4.4 1.1 0.9 16.8 21.0 0.5 0.4

HEG Buy 217 242 868 1,746 1,946 16.5 17.7 22.5 32.9 9.6 6.6 1.0 0.9 10.4 14.2 1.1 1.1

Hitachi Buy 149 160 341 857 968 6.9 8.4 10.2 16.0 14.6 9.3 1.8 1.5 12.9 17.8 0.4 0.3

Honeywell Automation Neutral 2,733 - 2,416 1,761 2,024 6.7 8.2 95.0 127.0 28.8 21.5 3.4 2.9 14.1 16.3 1.3 1.1

INEOS ABS India Accumulate 727 804 1,279 900 1,020 9.0 11.1 33.0 45.0 22.0 16.2 3.0 2.6 14.3 17.0 1.2 1.0

ITD Cementation Neutral 230 - 265 1,535 1,842 11.1 11.1 27.3 38.3 8.4 6.0 0.7 0.6 7.9 10.2 0.6 0.6

Jyothy Laboratories Accumulate 237 268 1,915 1,315 1,568 8.6 11.1 6.4 10.9 37.2 21.8 3.1 3.0 8.4 13.9 1.7 1.4MCX Buy 1,046 1,598 5,333 610 702 65.5 67.0 67.9 79.9 15.4 13.1 4.5 3.8 29.1 28.9 5.9 4.7

MRF Buy 10,607 13,106 4,499 12,390 14,400 10.4 11.3 1,334.6 1,638.2 8.0 6.5 1.6 1.3 16.5 17.4 0.5 0.5

Page Industries Neutral 3,005 - 3,352 887 1,108 18.3 18.6 95.0 120.9 31.6 24.9 16.5 13.4 57.4 59.5 3.7 2.9

Relaxo Footwears Buy 536 618 644 1,019 1,220 11.2 12.2 44.2 61.8 12.2 8.7 2.9 2.2 26.8 28.6 0.8 0.7

Sintex Industries Buy 67 79 1,822 4,751 5,189 16.3 16.6 13.6 15.8 4.9 4.2 0.7 0.6 12.9 13.2 0.7 0.6

Siyaram Silk Mills Buy 270 392 253 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 Buy 35 40 1,712 5,647 6,513 3.5 6.5 1.9 4.9 18.2 7.2 42.7 6.2 - - 0.4 0.4

TAJ GVK Buy 69 108 435 300 319 35.8 36.2 7.9 9.1 8.8 7.6 1.2 1.0 13.9 14.4 1.6 1.4


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zOthers

Tata Sponge Iron Buy 338 420 521 700 806 18.2 18.2 55.6 65.1 6.1 5.2 0.8 0.7 14.2 14.8 0.3 0.2

TVS Srichakra Buy 328 462 251 1,612 1,827 9.5 9.8 72.3 92.5 4.5 3.6 1.3 1.0 33.1 32.1 0.4 0.3

United Spirits Accumulate 741 730 9,691 10,289 11,421 13.5 14.3 31.0 42.9 23.9 17.3 1.9 1.7 8.1 10.3 1.6 1.4

Vesuvius India Accumulate 372 413 755 628 716 16.4 16.5 29.8 34.4 12.5 10.8 2.2 1.9 18.8 18.6 1.0 0.8

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on July 05, 2012


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July 06, 2012Market Outlook

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