Market Outlook, 07-08-2013

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Market OutlookAugust 7, 2013

Dealers DiaryIndian markets are expected to open flat tracking mixed opening in Asian markets

due to speculation that U.S. Federal Reserve might bring down its bond-buying

program.

The US markets extended losses into a second day Tuesday as renewed worriesabout the outlook for the Federal Reserve's stimulus program contributed to the

weakness in the markets. The Commerce Department released a report showing

that the trade deficit narrowed by much more than expected in the month of June

to US$34.2bn from a revised US$44.1bn in May. Paul Ashworth, Chief U.S.

Economist at Capital Economics, said that the narrower than expected trade deficit

suggests that second quarter GDP growth was significantly stronger than the

preliminary estimate of 1.7%. A substantial upward revision to pace of GDP growth

in the second quarter could indicate to the Fed that the economy is on firmer

footing and capable of handling a tapering of its asset purchase program. Adding

to the worries about the Fed's stimulus program, Atlanta Fed President Dennis

Lockhart said that the decision to begin scaling back bond purchases could come

at any of the three remaining policy meetings this year.

Meanwhile, Indian markets fell sharply on Tuesday, weighed down by concerns

over depreciating rupee and its likely impact on inflation as well as fiscal and

current account deficits. The rupee touched the mark of 61.81 per dollar,

surpassing its previous low of 61.21 hit on July 8.

Markets TodayThe trend deciding level for the day is 18,844/ 5,576 levels. If NIFTY trades abovethis level during the first half-an-hour of trade then we may witness a further rally

up to 19,201 19,309 / 5,631 5,719 levels. However, if NIFTY trades below18,844 / 5,576 levels for the first half-an-hour of trade then it may correct up to18,556 18,379 / 5631 5,719 levels.

Indices S2 S1 PIVOT R1 R2SENSEX 18,379 18,556 18,844 19,021 19,309

NIFTY 5,433 5,488 5,576 5,631 5,719

News Analysis Ashoka Buildcon has emerged as lower bidder for turnkey electrification

contracts worth`494cr Result Review:Bosch, Crompton Greaves, Bajaj Electricals, Ashoka Buildcon,

TVS Srichakra Result Preview: Tata Motors, Lupin, NMDC, GSK Pharma, Cadila Healthcare,

Ranbaxy Labs, Apollo Tyres, MOIL, Alembic Pharmaceutical, NCC, UnityInfraprojects

Refer detailed news analysis on the following page

Net Inflows (August 5, 2013)` cr Purch Sales Net MTD YTDFII 2,899 2,748 151 872 66,270

MFs 468 734 (266) (175) (14,521)

FII Derivatives (August 6, 2013)` cr Purch Sales Net Open InterestIndex Futures 2,522 3,103 (581) 12,075

Stock Futures 1,941 1,983 (43) 25,645

Gainers / LosersGainers Losers

Company Price (`) chg (%) Company Price (`) chg (%)Hindustan Copper 48 8.7 Financial Tech 159 (19.6)

MMTC 43 4.9 JP Power 10 (15.8)

Adani Ports 130 4.7 Tata Power 71 (14.8)

Glaxosmithkl Phar 2,323 3.1 HDIL 27 (12.2)

Crompton Greav 84 2.9 MCX 332 (10.0)

Domestic Indices Chg (%) (Pts) (Close)BSE Sensex (2.3) (449) 18,733

Nifty (2.5) (143) 5,542

MID CAP (2.6) (142) 5,302

SMALL CAP (1.8) (92) 5,101

BSE HC (1.1) (94) 8,863

BSE PSU (2.6) (133) 5,058

BANKEX (3.9) (450) 11,082

AUTO (0.7) (71) 10,225

METAL (3.2) (217) 6,467

OIL & GAS (2.6) (221) 8,138

BSE IT (0.5) (35) 7,548

Global Indices Chg (%) (Pts) (Close)Dow Jones (0.6) (93) 15,519NASDAQ (0.7) (27) 3,666

FTSE (0.2) (15) 6,604

Nikkei 1.0 143 14,401

Hang Sang (1.3) (298) 21,924

Straits Times (0.5) (17) 3,225

Shanghai Com 0.5 10 2,061

Indian ADR Chg (%) (Pts) (Close)INFY (1.3) (0.7) $49.1

WIT (1.2) (0.1) $8.9IBN (2.5) (0.8) $31.1

HDB (5.3) (1.8) $31.6

Advances / Declines BSE NSEAdvances 602 282

Declines 1,648 1,052

Unchanged 128 59

Volumes (` cr)BSE 1,682

NSE 10,927

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Ashoka Buildcon has emerged as lower bidder for turnkeyelectrification contracts worth`494cr

Ashoka Buildcon has emerged as the lowest bidder for turnkey electrification

various contracts worth ~`495cr for electrification works for Mavavitaran

Infrastructure plan Phase-II from Maharashtra State Electricity Distribution Co.(MSEDCL). We continue to maintain our Buy rating on the stock with target price of`60.

Result Review

Bosch (CMP:`8,312/ TP: -/ Upside: -)

Bosch (BOS) reported broadly in-line results for 2QCY2013. While top-line grew at

a better-than-expected rate of 5.9% yoy (4.4% qoq); EBITDA margins continued to

remain under pressure (down 155bp sequentially) resulting in a muted growth in

the bottom-line.

For 2QCY2013, top-line posted a healthy growth of 5.9% yoy (4.4% qoq) to

`2,307cr, ahead of our estimates of`2,188cr, driven by a strong exports growth

of 14.1% yoy. Domestic markets however, reported a modest growth of 3.8% yoy

as domestic automotive demand continued to remain weak following challenging

macroeconomic environment. On the operating front, EBITDA margins declined

155bp sequentially to 15.7%, lower than our expectations of 16.8%. The

performance was impacted due to the INR depreciation against the EUR and also

due to increase in staff expenditure on account of annual salary hikes.

Consequently, operating profit declined 4.9% qoq to `363cr, in-line with our

estimates of `367cr. On a yoy basis though, EBITDA margins improved 65bpprimarily on account of softening of raw-material prices and decline in other

expenditure (aided by cost reduction initiatives) offset by sharp increase in

employee expenditure and unfavorable currency movement. Net profit for the

quarter stood at `252cr (up 1.7% yoy but down 3.1% qoq), in-line with our

estimates of`249cr.

We maintain our positive view on the long term prospects of BOS due to its

technological leadership and strong and diversified product portfolio; however, we

expect the near-term environment to remain challenging for the company given

the continued slowdown in the domestic automotive industry. At,`8,312 the stock

is trading at 19.7x CY2014E earnings. We maintain our Neutral rating on thestock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)CY2013E 9,560 16.7 1,120356.7 17.3 23.3 4.0 14.1 2.2

CY2014E 10,961 17.4 1,323421.2 17.5 19.7 3.4 11.6 1.9

Crompton Greaves (CMP:`84/TP:`117/ Upside: 39%)

For 1QFY2014, Crompton Greaves reported 12.3% yoy growth in its top-line to

`3,157cr (compared to our estimate of `3,011cr) due to better than expectedrevenues from domestic consumer products segment. Standalone segmental

revenue of consumer products is up by 20.6% yoy to`789cr.

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On the EBITDA front, the company's operating profit was largely in-line with our

expectations, declining by 1.9% yoy to `145cr (our expectation of `148cr) with

international operations continuing to be drag on consolidated EBITDA.

Consequently, OPM contracted by 135bp yoy to 4.6%. However, Net profit came

below our estimate of`67cr, declining by 30.1% yoy to `60cr (due to increase in

interest cost from`10cr to`20cr. We recommend Buy on the stock with a targetprice of `117.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 13,446 6.7 425 6.6 11.4 12.7 1.4 7.1 0.5

FY2015E 15,272 7.6 570 8.9 14.0 9.5 1.3 5.7 0.4

Bajaj Electricals (CMP:`160/ TP:`237/ Upside: 47.8%)

Bajaj Electricals Ltd. (BEL) reported poor set of numbers for 1QFY2014. Strong

performance of lighting and consumer durables segment was dragged by the E&P

division which closed 7 of its old projects in the 1QFY2014 alone. Top-line

reported decent growth of 17.6% yoy to `783cr in line with our expectation of

`764cr. The consumer durables (CD) and Lighting and luminous (LnL) segment

registered growth of 11.8% and 3.3% yoy respectively while E&P segment grew by

whooping 53.6% owing to handover of 7 of its old projects.

EBITDA stood at`20cr which was lower by 41.6% yoy while margins at 2.6% lower

by 262bp. At EBIT levels, both CD and LnL segment reported higher margins of

9.2% and 4.9% respectively vis--vis 8.4% and 4.8% in the same quarter previous

year. Overall EBIT dip by 265bp yoy mainly on account of cost overruns in the

delayed projects in E&P segment which reported EBIT loss of`26cr as compared to

`7cr in 1QFY2013, The hit from the E&P division is expected to continue in

2QFY2014 post which the division shall be done with its old projects and left with

the new projects which have been bid at considerably better margins. Net profit,

on the back of sluggish operating performance, plunged by 94.5% yoy to`0.66cr.

Amidst poor performance for the quarter, BEL is set to have a clean slate post

1HFY2014 after the stock correction and significant hit from the cost over-run of

E&Ps delayed projects closure. In addition, BEL has initiated its entry into premium

segment of CD market with new launches slated to hit the market. On the back of

recent developments, we expect the top-line and bottom line to grow at CAGR of

14.9% and 135.6% (due to low base) respectively over FY2013-15E. We maintainour Buy rating on the stock with target price of `237 based on target PE of 12x forFY2015E.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 3,885 5.4 109 11.0 21.7 14.6 2.0 8.0 0.4

FY2015E 4,472 7.2 197 19.8 30.2 8.1 1.6 5.0 0.4

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Ashoka Buildcon (CMP:`43/ TP: Under review)

For 1QFY2014, Ashoka Buildcon (ABL) reported a poor set of numbers. The poor

result was mainly on the back of slowdown in execution, lower-than-expected

operating performance and higher interest cost, leading to disappointment at the

earnings level. ABL reported a flat top-line growth of 0.6% yoy to`

469cr in1QFY2014 which was lower than our estimate by 7.7%. On the EBITDAM front,

ABLs margins came in at 20.1% (22.0%), lower than our estimate of 22%, owing

to lower-than-expected revenue growth and high input costs. On the bottom-line

front, ABLs PAT declined by 26.0% yoy to`30cr (`41cr) and was slightly below our

estimate of `32cr. This was mainly on account of lower-than-expected revenue

growth and higher interest expenses. At CMP, the stock is trading at a P/E and

P/BV of 5.0x and 0.5x FY2015E earnings respectively. The target price and ratingon the stock is currently under review. We shall revise our estimates post earningsconference call with the Management, which is scheduled on August 8, 2013 at11.30am.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 1,912 21.0 138 7.7 12.6 5.6 0.6 7.9 1.7

FY2015E 2,217 21.5 137 8.7 11.3 5.0 0.5 7.7 1.7

TVS Srichakra (CMP:`158 / TP:`230 / Upside: 45%)

For 1QFY2014, TVS Srichakra (TVSSL) registered a topline growth of 5.6% yoy to

`381cr, in line with our estimate of `383cr. The operating margin expanded

marginally by 71bp and came in at 6.0%, against our estimate of 5.4%. Thecompany reported a higher than expected other income of`6cr in the quarter. The

tax expense came in at 32.0% of PBT at`3cr. Consequently, the company reported

a profit of`7cr in the quarter, ahead of our estimate of`3cr.

However, we expect that the companys sales and operating margin will improve

by FY2015E with the expected recovery in the demand for two wheelers and slight

softening in the rubber price. At the CMP, the stock is trading at a PE of 4.1x on

FY2015E earnings. On account of the low valuation, we maintain our Buyrecommendation on the stock with a target price of `230 based on a target PE of6.0x for FY2015E.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 1,591 6.1 23 30.5 13.5 5.2 0.7 4.3 0.3

FY2015E 1,720 6.4 29 38.3 15.5 4.1 0.6 3.7 0.2

Result Preview

Tata Motors (CMP:`287/ TP:`347/ Upside: 21%)

Tata Motors (TTMT) will be announcing its 1QFY2014 results today. On a

standalone basis, we expect revenues to decline ~17% yoy to `8,782cr due to

~19% yoy decline in volumes. Led by lower volumes, higher levels of discounting

and reduced operating leverage, we expect EBITDA margins to decline ~380bp

yoy to 2.8% leading to a net loss of ~`270cr. Nonetheless, led by Jaguar and

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Land Rover (expected to post a strong revenue growth of ~15% yoy), TTMT's

consolidated revenue is expected to register a healthy growth of 8.5% yoy to

`46,989cr. On the consolidated front, we expect EBITDA margins to remain stable

at 13.5%, backed by superior product and geography mix at JLR (JLR margins

expected to improve 100bp yoy to 15.4%) and also due to softening of commodity

prices. However, consolidated bottom-line (adjusted basis) is expected to remainflat yoy at`2,683cr due to a sharp increase in depreciation expense. At the CMP

of`287, the stock is trading at 6.9x FY2015E earnings. Currently, we have a Buyrating on the stock with a target price of `347.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 215,016 13.3 11,870 36.2 24.6 7.9 1.8 3.8 0.4

FY2015E 237,404 13.6 13,786 41.5 23.2 6.9 1.5 3.2 0.4

Lupin (CMP:`885/ TP: -/ Upside: -)

Lupin is expected to register a strong revenue growth of 31.1%. Its OPM is

expected to expand by 220bp during the period, on account of which, the net

profit will increase by around 31.0% for the quarter. We maintain our neutral onthe stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 11,641 21.3 1,553 34.8 26.2 25.4 5.9 16.1 3.4

FY2015E 13,933 21.3 1,866 41.8 24.8 21.1 4.7 13.2 2.8

NMDC (CMP:`96/ TP:`140/ Upside: 46%)

NMDC is slated to announce its 1QFY2014 results today. We expect the

companys top line to decrease by 5.1% yoy to`2,695cr on account of decrease in

sales realizations. On the operating front, EBITDA margin is expected to decrease

by 1,403bp yoy to 67.0%. The bottom line is expected to decrease by 19.2% yoy to

`1,540cr. We maintain our Buy view on the stock with a target price of `140.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 10,610 66.3 6,165 15.6 21.3 6.2 1.3 2.2 1.5FY2015E 11,400 64.2 6,366 16.1 19.9 6.0 1.1 2.1 1.3

GSK Pharma (CMP:`2,323/ TP: -/ Upside: -)

GSK Pharma is expected to post a growth of 1.5% in sales to `662cr during

2QCY2013. Its OPM is expected to come in at 25.6%, a dip of 550bps, leading to

a 15.0% dip in the net profit which is likely to come in at `144.3cr.We maintainour neutral on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesDec (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)CY2013E 2,859 28.6 649 76.6 31.1 30.3 9.1 21.1 6.0

CY2014E 3,145 28.6 706 83.3 31.0 27.9 8.2 18.9 5.4

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Cadila Healthcare (CMP:`744/ TP:`929/ Upside: 24.8%)

Cadila is expected to post yet another strong quarter with a 20.1% growth in net

sales to`1,820cr, on the back of robust growth on the exports front. On the OPM

front, we expect the company's OPM to dip by 190bp yoy to 15.7%. The net profit

is expected to grow by 21.7% yoy to`

237cr. We maintain our buy on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 7,280 15.5 785 38.3 23.5 19.4 4.2 15.5 2.4

FY2015E 8,640 15.7 951 46.5 23.5 16.0 3.6 12.8 2.0

Ranbaxy Labs (CMP:`270/ TP:`384/ Upside: 42%)

Ranbaxy is expected to post a decline of 10.2% in sales to `2,850cr during

2QCY2013. Its OPM is expected to come in at 10.5% Vs 14.4% in 2QCY2012.

However, the net profit is likely to come in at `304cr, Vs `51cr during the

corresponding period of last year. We maintain our buy on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesDec (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)CY2013E 11,400 10.5 744 17.5 17.0 15.4 2.5 9.0 0.9

CY2014E 12,060 12.5 956 22.5 19.1 12.0 2.1 6.7 0.8

Apollo Tyres (CMP:`63/ TP: -/ Upside: -)

Apollo Tyres (APTY) is slated to announce its 1QFY2014 results today. We expect

the company to post a ~2% yoy decline in the consolidated top-line to `3,091cr,

primarily on account of an ~15% and ~2% yoy decline in South Africa and India

revenues respectively. However, we expect the European operations to register a

revenue growth of ~3% yoy. We expect operating margins to improve ~40bp yoy

to 11.5%, driven by a decline in the prices of natural rubber. As a result, we expect

the consolidated bottom-line of the company to improve by ~4% yoy to`144cr for

the quarter. At `63, the stock is trading at 4.2x its FY2015E earnings. Currently,we have a Neutral rating on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 13,852 11.4 647 12.8 17.5 4.9 0.8 3.2 0.4

FY2015E 15,487 11.5 750 14.9 17.3 4.2 0.7 2.9 0.3

MOIL (CMP: `185/ TP: `248/ Upside: 34%)

MOIL is slated to report its 1QFY2014 results today. We expect its 1QFY2014 net

sales to be flat yoy at `241cr mainly on account of flat manganese ore price

realizations. EBITDA margin is however expected to expand by 116bp yoy to

43.3% in 1QFY2014. Net profit is expected to increase by 4.5% yoy to `104cr. Wemaintain our Buy rating on the stock with a target price of `248.

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Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 939 41.8 415 24.7 14.2 7.5 1.0 1.4 0.6

FY2015E 984 46.7 479 28.5 14.8 6.5 0.9 0.7 0.3

Alembic Pharmaceutical (CMP:`153/ TP: -/ Upside: -)

Alembic Pharmaceutical, is expected to register a strong revenue growth of 18.6%.

Its OPM is expected to expand by 139bp during the period to end at 15.7%, on

account of which, the net profit will increase by around 50.6% for the quarter. Wemaintain our neutral stance on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 1,736 17.1 202 10.7 35.0 14.3 4.5 10.2 1.7

FY2015E 2,008 18.9 262 13.9 34.7 11.0 3.4 7.8 1.5

NCC (CMP:`19/ TP:`30/ Upside: 58%)

NCC is expected to post a subdued performance for the quarter. On the top-line

front, NCC is expected to post subdued revenue growth of 2.6% to `1,511cr.

EBITDA margin is expected to grow by 7bp yoy to 8.0% for the quarter. On the

earnings front, we expect the net profit to grow by 10.1% yoy to `18cr. This would

be primarily on account of pick-up in execution and lower base of last year. We

expect interest cost of`102cr (up 9.0% yoy) owing to an elongated working capital

cycle. We maintain Buy rating on the stock with the target price of `30.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 6,167 8.0 69 2.7 2.7 6.9 0.2 5.4 0.4

FY2015E 6,945 8.2 93 3.6 3.6 5.1 0.2 5.0 0.4

Unity Infraprojects (CMP:`17/ TP: -/ Upside: -)

For Unity Infraprojects (Unity Infra), we project a muted 3.2% yoy growth in

revenue to`408cr for 1QFY2014, due to slowdown in execution on account of the

gloomy macro environment. On the EBITDAM front, we expect a dip of 8bp to

13.5%. The bottom-line is expected to post a decline of 17.3% yoy to`15cr for the

quarter. We maintain a Neutral rating on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 2,146 13.7 81 11.0 9.3 1.6 0.1 4.3 0.6

FY2015E 2,339 13.8 85 11.5 9.0 1.5 0.1 4.2 0.6

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Quarterly Bloomberg Consensus Estimate

Lupin Consolidated (07/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 2,685 2,219 21.0 2,537 5.8

EBITDA 631 458 37.8 659 (4.2)EBITDA margin (%) 23.5 20.6 26.0

Net profit 381 280 36.2 408 (6.5)

NMDC (07/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 2,687 2,838 (5.3) 3,202 (16.1)

EBITDA 1,764 2,302 (23.4) 2,297 (23.2)

EBITDA margin (%) 65.6 81.1 71.7

Net profit 1,518 1,906 (20.4) 1,465 3.6

Ranbaxy Consolidated (07/08/2013)Particulars (` cr) 2QCY13E 2QCY12 y-o-y (%) 1QCY13 q-o-q (%)Net sales 2,680 3,174 (15.6) 2,440 9.8

EBITDA 240 511 (53.0) 299 (19.7)

EBITDA margin (%) 9.0 16.1 12.3

Net profit 148 (586) (125.3) 126 17.5

Tata Motors Consolidated (07/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 46,380 43,171 7.4 57,083 (18.7)

EBITDA 6,148 5,575 10.3 7,802 (21.2)

EBITDA margin (%) 13.3 12.9 13.7

Net profit 2,220 2,245 (1.1) 3,946 (43.7)

Adani Enterprise Consolidated (08/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 12,704 11,025 15.2 11,472 10.7

EBITDA 1,896 1,080 75.6 1,550 22.3

EBITDA margin (%) 14.9 9.8 13.5

Net profit 308 403 (23.6) 474 (35.0)

Bharat Forge (08/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 715 916 (21.9) 660 8.3

EBITDA 151 235 (35.7) 142 6.0

EBITDA margin (%) 21.1 25.7 21.6

Net profit 55 105 (47.6) 50 10.0

Rural Electrification (08/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net profit 1,035 877 18.0 960 7.8

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ABB (09/08/2013)Particulars (` cr) 2QCY13E 2QCY12 y-o-y (%) 1QCY13 q-o-q (%)Net sales 1,993 1,859 7.2 1,953 2.0

EBITDA 118 106 11.3 107 10.3

EBITDA margin (%) 5.9 5.7 5.5

Net profit 57 52 9.6 43 32.6

Cipla (09/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 2,141 1,917 11.7 1,906 12.3

EBITDA 500 540 (7.4) 410 22.0

EBITDA margin (%) 23.4 28.2 21.5

Net profit 337 401 (16.0) 268 25.7

Sun Pharmaceutical Consolidated (09/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 3,318 2,658 24.8 3,072 8.0

EBITDA 1,441 1,242 16.0 1,275 13.0

EBITDA margin (%) 43.4 46.7 41.5

Net profit 919 796 15.5 1,012 (9.2)

Economic and Political News

Emerging nations' market output contracts in July: HSBC FIPB clears 12 FDI proposals worth`343cr

Gujarat bags one fourth of total industrial investment proposals Petroleum ministry seeks tax equalization for LPG New ICT policy offers subsidy sops for IT parks Raghuram Rajan to be the next RBI governor as Subbaraos term ends on

September 4, 2013

Corporate News

Cognizant raises forecast as discretionary spending returns, positive for IndianIT companies

Essar Oilfields to convert rupee loan into dollar GAIL India plans to sell part of stake in China Gas Holdings HDIL promoters haven't paid interest on loan; share fall 12% IOC to cut Iranian oil imports by 23%: Moily Reliance Jio gets DoT nod to test messaging on 4G US job seeker files discrimination lawsuit against Infosys

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

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Date Company

August 07, 2013NMDC, Tata Motors, Ranbaxy, Lupin, GSK Pharma, Cadila Healthcare, Gujarat Gas, Apollo Tyres, Nagarjuna Const.,Alembic Pharma

August 08, 2013Adani Enterp., Rural Elec.Corp., Bharat Forge, IRB Infra, ITNL, Page Industries, BGR Energy , Prakash Industries, ITDCementation

August 09, 2013 Sun Pharma, Cipla, ABB, Aurobindo Pharma, TVS Motor, Finolex Cables, Goodyear

August 10, 2013 Sarda Energy

August 11, 2013

August 12, 2013ONGC, St Bk of India, DLF, HPCL, Marico, Tech Mahindra, Indraprasth Gas, Britannia, United Bank, India Cements,Jyothy Laboratories

August 13, 2013 IOC, M&M, Tata Steel, Hindalco, BPCL, GMR Infra., GSPL, Sadbhav Engg., Cravatex

August 14, 2013SAIL, Nalco, LIC Housing Fin., Essar Oil, Bhushan Steel, HDIL, Monnet Ispat, Amara Raja Batteries, Simplex Infra,Electrosteel Castings, Madhucon Proj

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendarDate Time Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

August 8, 2013 6:00PM US Initial Jobless claims Thousands Aug 3 326.00 335.00

4:29PM China Exports YoY% % Change Jul (3.10) 2.00

August 9, 2013 7:00AM China Consumer Price Index (YoY) % Change Jul 2.70 2.80

11:00AM China Industrial Production (YoY) % Change Jul 8.90 9.00

August 12, 2013 4:29PM India Imports YoY% % Change Jul (0.37) --

4:29PM India Exports YoY% % Change Jul (4.60) --

5:30PM India Industrial Production YoY % Change Jun (1.60) (0.80)

August 13, 2013 2:00PM UK CPI (YoY) % Change Jul 2.90 --

August 14, 2013 2:00PM UK Jobless claims change % Change Jul (21.20) --

11:30AM Germany GDP nsa (YoY) % Change 2Q P (1.40) --

12:00PM India Monthly Wholesale Prices YoY% % Change Jul 4.86 5.00

2:30PM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 2Q A (0.30) --

6:00PM US Producer Price Index (mom) % Change Jul 0.80 0.40

August 15, 2013 6:00PM US Consumer price index (mom) % Change Jul 0.50 0.20

6:45PM US Industrial Production % Jul 0.31 0.25

August 16, 2013 6:00PM US Housing Starts Thousands Jul 836.00 900.00

6:00PM US Building permits Thousands Jul 918.00 945.00

2:30PM Euro Zone Euro-Zone CPI (YoY) % Jul F 1.60 --

August 21, 2013 7:30PM US Existing home sales Million Jul 5.08 --

August 22, 2013 1:00PM Germany PMI Services Value Aug A 51.30 --

1:00PM Germany PMI Manufacturing Value Aug A 50.70 --

August 23, 2013 7:30PM Euro ZoneEuro-Zone Consumer Confidence Value Aug A (17.40) --

7:30PM US New home sales Thousands Jul 497.00 --

2:00PM UK GDP (YoY) % Change 2Q P 1.40 --

August 27, 2013 7:30PM US Consumer Confidence S.A./ 1985=100 Aug 80.30 --

August 29, 2013 6:00PM US GDP Qoq (Annualised) % Change 2Q S 1.70 --

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

August 30, 2013 5:30PM India Qtrly GDP YoY% % Change 2Q 4.80 --


August 07, 2013

Market Outlook

8/22/2019 Market Outlook, 07-08-2013

11/19



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

9.3

7.7

11.4

9.5

8.69.2

9.9

7.5

6.56.0

5.1 5.4 5.24.7 4.8

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

(%)

(2.0)

(0.1)

2.0

(0.7)

8.4

(1.0) (0.6)

2.5

0.6

3.4

1.9

(1.6)(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

Jun-1

2

Ju

l-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

(%)

8.0 8.17.3 7.2 7.3 7.3 7.3

5.7

4.8 4.7 4.9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

(%)

48.0

50.0

52.0

54.0

56.0

58.0

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

Mar-

13

Apr-

13

May-1

3

Mfg. PMI Services PMI

(15.0)

0.0

15.0

Ju

l-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

Exports yoy growth Imports yoy growth(%)

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Aug-1

2

Sep-1

2

Oct-12

Nov-1

2

Dec-1

2

Jan-1

3

Feb-1

3

Mar-13

Apr-13

May-1

3

Jun-1

3

Jul-13

Repo rate Reverse Repo rate CRR (%)

8/22/2019 Market Outlook, 07-08-2013

12/19

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

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

Agri / Agri Chemical

Rallis Neutral 134 - 2,603 1,674 1,923 13.7 13.7 6.8 7.6 19.7 17.6 3.7 3.3 20.0 19.6 1.7 1.5

United Phosphorus Buy 129 225 5,716 10,091 11,302 16.5 16.5 19.2 22.5 6.7 5.7 1.1 0.9 17.0 17.2 0.7 0.6

Auto & Auto Ancillary

Amara Raja Batteries Buy 221 285 3,768 3,418 3,892 14.5 14.5 18.5 20.4 11.9 10.8 2.9 2.4 26.6 23.8 1.1 0.9

Apollo Tyres Neutral 63 - 3,183 13,852 15,487 11.4 11.5 12.8 14.9 4.9 4.2 0.8 0.7 17.5 17.3 0.4 0.3

Ashok Leyland Buy 12 22 3,265 13,450 15,853 6.5 8.5 0.4 1.9 32.1 6.6 1.1 1.0 2.3 11.0 0.4 0.3

Automotive Axle# Neutral 195 - 295 834 965 9.3 10.6 17.3 27.1 11.3 7.2 1.1 1.0 9.5 14.0 0.4 0.4Bajaj Auto Buy 1,809 2,102 52,358 21,696 25,239 19.2 19.3 119.3 140.2 15.2 12.9 5.3 4.2 38.9 36.6 2.0 1.6

Bharat Forge Neutral 188 - 4,379 6,198 6,793 14.6 14.9 14.5 17.3 12.9 10.9 1.7 1.5 13.6 14.7 0.8 0.7

Bosch India* Neutral 8,312 - 26,099 9,558 10,959 16.7 17.4 356.3 420.7 23.3 19.8 4.0 3.5 17.3 17.4 2.4 2.0

CEAT Buy 120 170 411 5,159 5,628 9.3 9.0 43.5 48.6 2.8 2.5 0.5 0.4 18.4 17.5 0.2 0.2

Exide Industries Buy 121 148 10,306 6,899 7,873 14.7 14.7 7.9 9.0 15.3 13.4 2.6 2.3 18.3 18.0 1.2 1.0

FAG Bearings* Neutral 1,164 - 1,935 1,336 1,572 13.8 16.0 75.6 102.4 15.4 11.4 2.0 1.7 13.4 15.8 1.2 1.0

Hero Motocorp Accumulate 1,849 2,048 36,915 25,562 28,297 14.5 14.4 111.2 146.3 16.6 12.6 6.1 4.7 40.1 42.1 1.2 1.1

JK Tyre Buy 92 154 378 7,972 8,754 7.1 7.1 37.5 44.0 2.5 2.1 0.4 0.3 16.4 16.6 0.3 0.3

Mahindra and Mahindra Buy 855 1,103 52,650 45,254 51,197 11.4 11.7 61.2 70.2 14.0 12.2 2.9 2.5 22.7 21.9 0.9 0.8

Maruti Buy 1,334 1,648 40,299 45,862 52,647 11.2 11.1 94.6 109.9 14.1 12.1 1.9 1.7 14.4 14.6 0.7 0.6

Motherson Sumi Accumulate 211 242 12,384 28,442 31,914 8.4 8.7 13.0 16.1 16.2 13.1 4.3 3.3 29.4 28.6 0.6 0.5

Subros Buy 19 23 112 1,230 1,398 10.5 10.5 2.3 3.8 8.0 4.9 0.4 0.4 4.8 7.6 0.3 0.3

Tata Motors Buy 287 347 77,414 215,016 237,404 13.3 13.6 36.2 41.5 7.9 6.9 1.8 1.5 24.6 23.2 0.4 0.4

TVS Motor Buy 30 35 1,409 7,715 8,584 6.0 6.1 5.0 5.8 6.0 5.1 1.0 0.9 18.1 18.5 0.1 0.1

Capital Goods

ABB* Neutral 468 - 9,910 8,073 9,052 5.5 6.9 11.5 16.9 40.6 27.6 3.7 3.5 9.3 13.1 1.2 1.0BGR Energy Neutral 81 - 581 3,756 4,569 11.4 9.7 21.7 24.1 3.7 3.3 0.4 0.4 22.3 20.3 0.5 0.4

BHEL Neutral 113 - 27,646 43,140 39,692 16.8 15.9 20.2 17.1 5.6 6.6 1.2 1.1 23.1 17.2 0.5 0.6

Blue Star Buy 136 208 1,224 2,941 3,099 3.4 4.2 6.0 9.3 22.8 14.6 2.8 2.5 12.9 18.0 0.5 0.5

Crompton Greaves Buy 84 117 5,417 13,446 15,272 6.7 7.6 6.6 8.9 12.7 9.5 1.4 1.3 11.4 14.0 0.5 0.5

Jyoti Structures Neutral 16 - 130 3,312 3,555 9.0 9.0 4.5 6.5 3.5 2.4 0.2 0.2 5.6 7.7 0.3 0.3

KEC International Buy 25 40 631 7,709 8,399 6.7 7.2 6.1 8.5 4.0 2.9 0.5 0.5 20.2 23.0 0.3 0.2

Thermax Neutral 564 - 6,716 5,832 6,397 9.1 9.6 28.8 32.9 19.6 17.1 3.2 2.8 17.2 17.3 1.1 1.0

Cement

ACC Buy 1,164 1,361 21,847 11,581 13,009 17.6 19.3 63.9 81.5 18.2 14.3 2.7 2.5 15.6 18.2 1.6 1.4


Market Outlook

Stock Watch

August 07, 2013

8/22/2019 Market Outlook, 07-08-2013

13/19



Cement

Ambuja Cements Neutral 179 - 27,580 9,975 11,409 22.4 23.1 9.4 11.1 19.1 16.0 2.9 2.7 15.7 17.2 2.3 1.9

India Cements Neutral 46 - 1,401 4,929 5,434 17.4 17.1 8.9 10.9 5.1 4.2 0.4 0.4 7.7 9.1 0.6 0.5

J K Lakshmi Cement Buy 54 100 631 2,256 2,709 20.2 22.2 17.0 20.4 3.2 2.6 0.4 0.4 14.8 15.4 0.3 0.8

Madras Cements Neutral 157 - 3,727 4,234 4,788 23.9 24.0 18.5 22.8 8.5 6.9 1.4 1.2 17.2 18.2 1.2 1.0

Shree Cement^ Neutral 4,061 - 14,147 6,607 7,520 27.5 26.7 322.8 374.3 12.6 10.9 3.1 2.5 27.8 25.6 1.5 1.1

UltraTech Cement Neutral 1,670 - 45,794 22,021 25,274 22.0 21.6 99.5 113.3 16.8 14.7 2.6 2.3 16.7 16.6 2.1 1.9

ConstructionAshoka Buildcon Buy 43 60 682 1,928 2,234 21.0 21.5 6.0 7.4 7.2 5.9 0.7 0.6 10.5 10.8 1.7 1.7

Consolidated Co Neutral 7 - 128 1,715 1,824 2.4 6.2 (2.9) (0.4) (2.4) (19.2) 0.3 0.3 0.5 0.5

IRB Infra Buy 66 157 2,205 3,997 4,312 45.5 46.4 15.7 16.6 4.2 4.0 0.6 0.6 15.2 14.5 3.0 3.2

ITNL Buy 110 230 2,135 7,444 8,041 27.4 28.9 29.8 32.1 3.7 3.4 0.5 0.5 14.9 14.2 2.4 2.4

IVRCL Infra Buy 11 29 331 5,673 5,892 8.1 8.4 1.4 1.8 7.5 5.9 0.2 0.2 2.0 2.6 0.5 0.5

Jaiprakash Asso. Buy 30 53 6,591 12,946 14,897 24.7 25.6 1.2 2.7 24.2 11.1 0.5 0.5 2.0 4.3 2.4 2.2

Larsen & Toubro Buy 795 1,128 73,556 68,946 78,040 10.0 10.0 49.0 55.2 16.2 14.4 2.3 2.1 14.9 15.3 1.2 1.1

Nagarjuna Const. Buy 19 30 476 6,167 6,945 8.0 8.2 2.7 3.6 6.9 5.1 0.2 0.2 2.7 3.6 0.4 0.4

Punj Lloyd Neutral 23 - 759 12,726 14,226 8.2 8.2 0.9 1.0 26.6 22.4 0.3 0.3 1.0 1.2 0.6 0.6

Sadbhav Engg. Buy 68 138 1,023 2,462 2,731 10.6 10.6 5.9 6.7 11.5 10.2 1.1 1.0 10.2 10.5 0.7 0.7

Simplex Infra Neutral 47 - 233 6,308 7,033 9.5 9.6 11.9 18.7 4.0 2.5 0.2 0.2 4.5 6.7 0.5 0.5

Unity Infra Neutral 17 - 128 2,146 2,339 13.7 13.8 11.0 11.5 1.6 1.5 0.1 0.1 9.3 9.0 0.6 0.6

Financials

Allahabad Bank Neutral 67 - 3,373 6,843 7,528 2.5 2.5 26.0 30.1 2.6 2.2 0.4 0.3 11.8 12.4 - -

Andhra Bank Reduce 57 51 3,184 4,868 5,390 2.4 2.5 12.3 16.6 4.6 3.4 0.5 0.4 7.9 10.0 - -

Axis Bank Buy 1,090 1,255 51,118 19,280 22,886 3.3 3.3 130.7 157.1 8.3 6.9 1.4 1.2 17.3 18.1 - -Bank of Baroda Neutral 488 - 20,564 15,896 17,947 2.2 2.3 95.4 124.4 5.1 3.9 0.6 0.6 12.0 14.2 - -

Bank of India Neutral 166 - 9,898 14,482 16,069 2.3 2.2 55.0 62.2 3.0 2.7 0.5 0.4 13.7 13.9 - -

Bank of Maharashtra Neutral 40 - 2,676 4,529 4,780 3.0 2.8 12.3 11.8 3.3 3.4 0.5 0.5 16.5 14.1 - -

Canara Bank Neutral 239 - 10,601 11,454 12,378 2.0 2.0 52.4 60.5 4.6 4.0 0.5 0.5 9.8 10.4 - -

Central Bank Neutral 54 - 5,677 8,196 9,202 2.4 2.4 6.1 15.9 9.0 3.4 0.7 0.5 5.2 12.8 - -

Corporation Bank Neutral 268 - 4,100 5,641 6,083 2.0 2.0 82.7 98.1 3.2 2.7 0.4 0.4 12.6 13.5 - -

Dena Bank Neutral 45 - 1,584 3,307 3,531 2.2 2.4 17.5 21.6 2.6 2.1 0.3 0.3 11.9 13.2 - -

Federal Bank Neutral 338 - 5,787 2,798 3,250 3.0 3.0 38.1 51.9 8.9 6.5 0.8 0.8 9.8 12.3 - -


Market Outlook

Stock Watch

August 07, 2013

8/22/2019 Market Outlook, 07-08-2013

14/19



Financials

HDFC Accumulate 752 830 116,800 8,679 10,350 3.6 3.6 37.5 44.7 20.0 16.8 4.2 3.7 30.1 30.7 - -

HDFC Bank Buy 608 745 145,213 27,392 33,264 4.6 4.6 36.3 45.1 16.7 13.5 3.4 2.9 21.9 22.8 - -

ICICI Bank Buy 866 1,038 99,985 25,727 29,969 3.2 3.2 83.2 96.7 10.4 9.0 1.4 1.3 14.9 15.4 - -

IDBI Bank Neutral 57 - 7,583 9,518 10,468 2.0 2.0 15.5 22.1 3.7 2.6 0.4 0.3 10.2 13.3 - -

Indian Bank Neutral 70 - 3,002 5,940 6,396 2.7 2.7 24.9 32.9 2.8 2.1 0.3 0.3 10.3 12.4 - -

IOB Neutral 39 - 3,576 7,692 8,627 2.2 2.3 8.1 15.2 4.8 2.5 0.3 0.3 5.9 10.5 - -

J & K Bank Neutral 1,063 - 5,154 3,038 3,370 3.7 3.9 214.2 202.6 5.0 5.3 0.9 0.8 19.8 16.3 - -LIC Housing Finance Neutral 161 - 8,105 2,180 2,732 2.4 2.5 26.3 32.1 6.1 5.0 1.1 1.0 19.0 19.9 - -

Oriental Bank Neutral 137 - 4,007 6,918 7,459 2.6 2.5 46.7 52.5 2.9 2.6 0.3 0.3 10.8 11.1 - -

Punjab Natl.Bank Neutral 521 - 18,404 20,766 23,515 3.4 3.4 135.0 164.8 3.9 3.2 0.6 0.5 14.4 15.7 - -

South Ind.Bank Neutral 20 - 2,701 1,800 2,023 2.7 2.7 3.7 4.2 5.4 4.8 0.9 0.8 16.2 16.2 - -

St Bk of India Neutral 1,641 - 112,233 66,417 76,734 3.0 3.0 227.4 284.8 7.2 5.8 1.1 0.9 15.4 17.1 - -

Syndicate Bank Neutral 75 - 4,488 6,740 7,512 2.5 2.5 21.0 23.5 3.6 3.2 0.4 0.4 12.6 12.8 - -

UCO Bank Neutral 54 - 4,091 6,770 7,017 2.8 2.6 14.8 15.5 3.7 3.5 0.6 0.5 14.4 13.5 - -

Union Bank Neutral 113 - 6,741 10,458 11,809 2.5 2.5 32.0 40.6 3.5 2.8 0.4 0.4 11.6 13.4 - -

United Bank Neutral 34 - 1,270 3,386 3,884 2.3 2.5 12.4 20.0 2.7 1.7 0.3 0.3 10.0 14.7 - -

Vijaya Bank Neutral 36 - 1,801 2,718 2,941 1.8 1.9 7.0 9.0 5.2 4.1 0.4 0.4 8.2 9.8 - -

Yes Bank Neutral 274 - 9,873 4,417 5,486 2.7 2.8 42.9 49.5 6.4 5.5 1.4 1.2 23.9 22.8 - -

FMCG

Asian Paints Neutral 438 - 41,979 12,332 14,524 16.3 16.1 13.9 16.0 31.5 27.3 10.0 8.0 35.2 32.5 3.3 2.8

Britannia Neutral 723 - 8,651 6,417 7,502 6.1 6.3 21.3 25.5 34.0 28.4 11.0 8.9 35.7 34.6 1.3 1.1

Colgate Neutral 1,264 - 17,187 3,588 4,130 20.5 20.9 44.2 51.8 28.6 24.4 27.9 20.3 108.6 96.2 4.6 4.0

Dabur India Neutral 160 - 27,898 7,183 8,297 16.8 16.9 5.4 6.3 29.9 25.4 10.5 8.4 39.2 36.7 3.9 3.4

GlaxoSmith Con* Neutral 4,068 - 17,109 3,617 4,259 16.1 16.4 122.2 148.7 33.3 27.4 10.4 8.3 34.1 33.7 4.3 3.5

Godrej Consumer Neutral 841 - 28,614 7,801 9,017 16.2 15.9 25.1 29.7 33.5 28.3 7.2 6.0 24.9 24.2 3.8 3.2

HUL Neutral 608 - 131,493 28,415 31,962 13.6 14.1 16.7 18.2 36.5 33.4 35.0 25.4 112.2 88.1 4.5 4.0

ITC Neutral 330 - 261,199 34,294 39,991 36.8 37.0 11.3 13.3 29.3 24.8 9.7 7.8 36.1 34.9 7.3 6.2

Marico Neutral 208 - 13,396 5,273 6,044 14.8 14.9 7.3 8.7 28.6 24.0 5.6 4.6 21.4 21.0 2.6 2.2

Nestle* Neutral 5,102 - 49,186 9,447 10,968 22.1 22.3 127.5 154.1 40.0 33.1 20.0 14.5 57.7 50.7 5.2 4.4

Tata Global Neutral 138 - 8,531 8,069 8,957 9.8 9.7 7.8 8.6 17.6 16.1 2.1 2.0 9.5 9.7 1.0 0.9


Market Outlook

Stock Watch

August 07, 2013

8/22/2019 Market Outlook, 07-08-2013

15/19



IT

HCL Tech^ Accumulate 943 1,012 65,743 30,698 33,933 22.1 21.5 65.3 69.8 14.5 13.5 3.7 3.0 26.5 23.0 1.9 1.7

Hexaware* Neutral 119 - 3,547 2,213 2,479 21.5 20.5 12.1 12.9 9.8 9.2 2.4 2.1 25.4 23.5 1.4 1.2

Infosys Reduce 2,986 2,820 171,473 47,001 51,196 26.2 26.4 171.3 189.4 17.4 15.8 3.6 3.1 20.4 19.3 3.0 2.6

Infotech Enterprises Accumulate 169 190 1,891 2,052 2,263 17.2 17.6 20.7 22.5 8.2 7.5 1.2 1.1 14.9 14.0 0.6 0.4

KPIT Cummins Accumulate 132 145 2,554 2,670 3,018 17.3 16.7 14.1 15.3 9.4 8.7 1.8 1.5 20.9 18.4 0.9 0.7

Mindtree Accumulate 977 1,050 4,060 2,768 3,006 19.7 19.9 103.1 105.3 9.5 9.3 2.3 1.8 24.8 20.3 1.2 1.0

Mphasis& Neutral 397 - 8,344 6,372 6,852 18.0 18.2 38.0 43.5 10.4 9.1 1.5 1.3 14.3 14.2 0.8 0.6NIIT Neutral 16 - 258 1,144 1,267 9.0 9.1 4.3 5.4 3.6 2.9 0.4 0.4 10.3 12.0 - -

Persistent Accumulate 512 568 2,049 1,533 1,715 22.2 22.5 49.2 56.8 10.4 9.0 1.7 1.5 16.4 16.1 0.9 0.7

TCS Accumulate 1,871 2,060 366,098 79,005 91,576 29.7 30.0 88.6 103.1 21.1 18.1 6.7 5.3 31.5 29.2 4.4 3.7

Tech Mahindra Accumulate 1,234 1,390 28,661 8,102 8,709 19.7 19.2 107.5 117.0 11.5 10.6 2.4 2.0 21.2 18.9 3.5 3.2

Wipro Neutral 451 - 111,221 42,196 45,890 21.0 21.6 28.3 31.2 16.0 14.5 3.3 2.8 20.7 19.4 2.2 1.9

Media

D B Corp Buy 239 302 4,389 1,783 1,968 25.2 26.8 14.6 17.2 16.5 13.9 4.3 3.6 23.9 24.2 2.4 2.1

HT Media Buy 93 117 2,182 2,205 2,380 15.1 15.6 8.3 9.3 11.2 10.0 1.4 1.2 11.6 11.6 0.6 0.5

Jagran Prakashan Buy 85 116 2,805 1,683 1,845 22.3 23.7 6.5 7.8 12.9 10.9 2.7 2.4 21.3 23.1 1.8 1.6

PVR Neutral 335 - 1,329 1,359 1,540 17.3 17.4 17.2 21.6 19.4 15.5 1.9 1.8 10.3 12.0 1.4 1.2

Sun TV Network Neutral 414 - 16,317 2,287 2,551 69.7 70.5 20.0 23.3 20.7 17.8 5.1 4.5 26.4 27.3 6.8 6.0

Metals & Mining

Bhushan Steel Neutral 460 - 10,427 13,794 17,088 30.9 33.5 49.3 66.6 9.4 6.9 1.0 0.9 11.3 13.5 2.4 1.9

Coal India Neutral 258 - 162,931 70,158 74,443 29.8 30.2 25.2 27.1 10.2 9.5 2.5 2.1 33.3 33.1 1.5 1.4

Electrosteel Castings Buy 10 18 329 1,976 2,017 11.8 12.7 1.3 2.6 8.0 3.9 0.1 - 2.6 5.2 0.5 0.1

GMDC Buy 81 127 2,569 1,701 1,985 47.8 48.8 17.4 20.6 4.7 3.9 0.9 0.8 20.7 20.9 1.0 0.7Hind. Zinc Buy 98 140 41,366 12,389 13,093 48.5 51.7 15.2 17.0 6.4 5.8 1.1 1.0 18.5 18.0 1.2 0.7

Hindalco Neutral 86 - 16,379 89,352 93,672 8.8 9.2 13.4 15.0 6.4 5.7 0.5 0.4 7.3 7.6 0.5 0.5

JSW Steel Neutral 510 - 12,329 44,605 47,040 15.7 16.0 62.5 75.6 8.2 6.8 0.7 0.6 8.5 9.6 0.8 0.7

MOIL Buy 184 248 3,099 1,010 1,046 46.5 47.6 26.8 28.8 6.9 6.4 1.0 0.9 15.4 14.7 0.7 0.4

Monnet Ispat Buy 98 193 621 2,326 2,709 21.4 23.1 33.3 43.1 2.9 2.3 0.2 0.2 8.3 9.9 1.3 1.0

Nalco Neutral 25 - 6,417 7,656 7,988 13.1 13.5 2.6 2.6 9.8 9.5 0.5 0.5 5.5 5.5 0.3 0.3

NMDC Buy 95 140 37,605 10,610 11,400 66.3 64.2 15.6 16.1 6.1 5.9 1.2 1.1 21.3 19.9 1.4 1.3

SAIL Neutral 38 - 15,756 44,060 54,786 9.4 11.5 5.2 7.2 7.3 5.3 0.4 0.4 5.2 6.8 0.6 0.5


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Metals & Mining

Sesa Goa Buy 125 162 10,851 3,817 5,781 12.1 17.7 27.0 29.6 4.6 4.2 0.6 0.5 12.9 12.5 3.7 2.4

Sterlite Inds Buy 71 97 23,995 44,493 45,599 22.4 23.9 16.8 19.2 4.2 3.7 0.4 0.4 10.5 10.9 0.5 0.4

Tata Steel Buy 199 378 19,288 140,917 151,537 9.7 10.8 30.9 47.6 6.4 4.2 0.6 0.5 9.6 13.4 0.5 0.5

Sarda Buy 72 153 260 1,494 1,568 19.1 20.3 31.3 36.5 2.3 2.0 0.3 0.2 11.8 12.4 0.5 0.4

Prakash Industries Buy 28 40 378 2,615 2,776 12.1 12.0 9.8 10.4 2.9 2.7 0.2 0.2 6.5 6.5 0.4 0.3

Godawari Power andIspat

Buy 63 78 208 2,171 2,317 14.9 15.8 36.4 46.6 1.7 1.4 0.2 0.2 11.6 13.0 0.5 0.4

Oil & Gas

Cairn India Buy 290 364 55,365 18,403 17,925 71.9 62.1 62.1 57.4 4.7 5.1 1.0 0.8 22.6 17.8 1.8 1.5

GAIL Neutral 303 - 38,416 49,700 48,822 16.0 16.6 32.9 33.4 9.2 9.1 1.4 1.2 15.9 14.4 0.3 0.2

ONGC Buy 268 387 229,073 170,063 198,461 36.3 38.3 34.7 41.9 7.7 6.4 1.3 1.2 18.3 19.5 1.1 0.8

Reliance Industries Neutral 840 - 271,412 397,546 421,695 8.9 8.7 72.3 76.8 11.6 10.9 1.2 1.1 12.3 11.8 0.7 0.6

Gujarat Gas* Neutral 164 - 2,099 3,707 3,850 11.7 12.4 23.7 25.7 6.9 6.4 1.9 1.7 29.6 28.2 0.4 0.4

Indraprastha Gas Neutral 252 - 3,521 3,700 4,218 23.4 22.8 26.7 30.4 9.4 8.3 2.0 1.7 22.7 21.8 1.0 0.8

Petronet LNG Buy 117 135 8,775 39,449 43,315 5.3 5.9 14.1 16.9 8.3 6.9 1.7 1.4 21.7 21.9 0.3 0.3

Gujarat State PetronetLtd.

Buy 50 68 2,800 1,171 1,287 91.9 91.9 10.1 11.3 4.9 4.4 0.8 0.7 17.3 16.8 1.9 1.4

Pharmaceuticals

Alembic Pharma Neutral 153 - 2,881 1,736 2,008 17.1 18.9 10.7 13.9 14.3 11.0 4.5 3.4 35.0 34.7 1.7 1.5

Aurobindo Pharma Buy 149 271 4,329 6,641 7,637 15.9 15.9 17.3 20.6 8.6 7.2 1.4 1.1 19.5 18.9 1.1 0.9

Aventis* Neutral 2,400 - 5,527 1,682 1,917 15.6 15.6 91.9 101.7 26.1 23.6 3.7 3.6 15.6 17.1 2.8 2.3

Cadila Healthcare Buy 744 929 15,239 7,280 8,640 15.5 15.7 38.3 46.5 19.4 16.0 4.2 3.4 23.5 23.5 2.4 2.0

Cipla Buy 392 477 31,462 9,274 10,796 23.1 23.1 21.0 23.8 18.7 16.5 3.0 2.6 17.2 16.8 3.1 2.6

Dr Reddy's Buy 2,198 2,535 37,359 13,377 15,350 20.4 20.1 112.1 126.6 19.6 17.4 4.2 3.5 23.5 21.8 2.9 2.5

Dishman Pharma Buy 47 132 376 1,394 1,534 22.5 22.4 14.8 16.6 3.2 2.8 0.3 0.3 10.8 11.0 0.9 0.8

GSK Pharma* Neutral 2,323 - 19,674 2,854 3,145 28.6 28.6 76.6 83.3 30.3 27.9 9.1 8.3 31.1 31.0 6.0 5.4

Indoco Remedies Buy 63 78 581 747 906 15.3 15.3 5.9 7.6 10.7 8.3 1.3 1.1 12.5 14.4 1.0 0.8

Ipca labs Neutral 658 - 8,305 3,246 3,830 20.5 21.7 36.2 44.9 18.2 14.7 4.3 3.4 26.1 25.7 2.7 2.3

Lupin Neutral 885 - 39,642 11,641 13,933 21.3 21.3 34.8 41.8 25.4 21.2 6.0 4.7 26.2 24.8 3.4 2.8

Ranbaxy* Buy 270 384 11,405 11,400 12,060 10.5 12.5 17.5 22.5 15.4 12.0 2.5 2.1 17.0 19.1 1.0 0.8

Sun Pharma Neutral 538 - 111,225 13,509 15,846 41.0 41.0 16.5 19.9 32.6 27.0 6.6 5.4 22.0 22.0 7.7 6.4

Power

GIPCL Buy 55 65 827 1,444 1,482 33.4 33.0 13.7 14.8 4.0 3.7 0.5 0.4 12.3 12.0 0.6 0.4

NTPC Buy 135 163 111,231 76,734 86,680 24.5 24.3 13.4 14.5 10.1 9.3 1.2 1.1 12.8 12.7 2.1 2.0


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Real Estate

DLF Buy 122 236 21,748 8,293 9,622 36.5 36.1 5.7 6.7 21.4 18.1 0.8 0.7 3.7 4.1 4.7 3.9

MLIFE Accumulate 432 483 1,765 888 1,002 27.0 29.9 33.9 42.1 12.8 10.3 1.3 1.2 9.9 11.2 2.6 2.3

Telecom

Bharti Airtel Accumulate 323 350 129,276 83,535 92,173 32.0 33.1 9.2 12.9 35.2 25.0 2.3 2.1 6.8 8.9 2.2 2.0

Idea Cellular Neutral 157 - 51,981 25,640 28,459 26.9 27.2 4.0 4.9 39.1 31.7 3.3 3.0 8.4 9.4 2.4 2.1

Rcom Neutral 121 - 25,006 22,751 24,628 30.9 31.3 3.4 5.3 35.3 23.0 0.7 0.7 2.1 3.1 2.7 2.4

OthersAbbott India* Buy 1,383 1,659 2,940 1,863 2,081 11.8 12.4 71.2 83.0 19.4 16.7 3.9 3.3 21.6 21.5 1.3 1.0

Bajaj Electricals Buy 160 237 1,599 3,885 4,472 5.4 7.2 11.0 19.7 14.6 8.1 2.0 1.7 13.5 20.3 0.4 0.4

Cera Sanitaryware Buy 514 613 651 631 797 14.5 13.7 42.6 51.1 12.1 10.1 2.9 2.3 26.5 25.3 1.0 0.8

Cravatex Buy 283 459 73 248 284 6.5 7.3 27.2 38.2 10.4 7.4 1.6 1.4 15.7 18.5 0.5 0.4

Finolex Cables Buy 51 68 777 2,563 2,899 9.8 9.8 10.1 11.3 5.1 4.5 0.7 0.6 14.3 13.8 0.2 0.2

Force Motors Buy 245 349 319 2,304 2,649 3.1 3.6 28.0 43.7 8.8 5.6 0.3 0.3 3.1 4.7 0.1 0.1

Goodyear India* Accumulate 306 345 706 1,458 1,542 8.3 9.0 32.3 37.0 9.5 8.3 1.7 1.5 19.5 19.3 0.3 0.2

Hitachi Buy 101 191 275 1,080 1,199 8.9 9.1 18.3 19.1 5.5 5.3 1.0 0.8 19.2 17.0 0.4 0.3

Honeywell Automation* Neutral 2,297 - 2,031 1,842 2,131 7.7 7.8 111.1 130.9 20.7 17.6 2.6 2.3 13.3 13.9 1.0 0.9

IFB Agro Buy 117 198 105 495 651 12.7 12.9 29.3 39.5 4.0 3.0 0.6 0.5 15.4 17.6 0.3 0.2

ITD Cementation Buy 160 234 184 1,430 1,573 11.1 11.0 19.1 26.9 8.4 6.0 0.4 0.4 5.4 7.1 0.5 0.5

Jyothy Laboratories Buy 163 199 2,707 1,220 1,476 13.3 13.6 5.5 9.0 29.6 18.0 3.4 3.0 12.1 17.7 2.6 2.0

MRF Buy 12,480 16,218 5,293 11,799 12,587 14.1 13.5 1,792.0 1,802.0 7.0 6.9 1.5 1.2 23.5 19.2 0.6 0.5

Page Industries Accumulate 4,295 4,611 4,790 1,057 1,282 19.4 19.6 124.8 153.7 34.4 27.9 17.1 12.6 56.3 51.8 4.6 3.8

Relaxo Footwears Buy 742 981 890 1,196 1,401 11.9 12.6 55.6 75.4 13.4 9.8 3.2 2.4 27.1 28.1 0.9 0.7

Siyaram Silk Mills Buy 197 311 184 1,158 1,322 10.8 11.2 62.1 77.8 3.2 2.5 0.5 0.4 17.2 18.4 0.4 0.3Styrolution ABS India* Buy 349 492 614 1,007 1,108 8.4 8.7 30.3 35.1 11.5 9.9 1.3 1.2 11.7 12.2 0.6 0.5

TAJ GVK Buy 57 108 356 300 319 35.8 36.2 7.9 9.1 7.2 6.2 1.0 0.9 13.9 14.4 1.5 1.3

Tata Sponge Iron Buy 248 371 382 814 849 17.0 17.6 64.6 69.2 3.8 3.6 0.5 0.5 14.5 13.8 0.1 (0.1)

TTK Healthcare Buy 500 632 388 416 481 4.5 6.1 16.2 25.3 30.8 19.7 3.8 3.4 12.6 18.1 0.8 0.7

Tree House Buy 243 297 873 153 194 53.0 52.8 12.4 15.6 19.6 15.5 2.3 2.0 11.8 13.1 5.9 4.5

TVS Srichakra Buy 158 230 121 1,591 1,720 6.1 6.4 30.5 38.3 5.2 4.1 0.7 0.6 13.5 15.5 0.3 0.2

United Spirits Neutral 2,259 - 32,829 12,294 14,162 12.0 12.0 42.1 67.7 53.7 33.4 3.8 3.4 9.1 10.7 3.0 2.6

Vesuvius India* Buy 350 439 710 600 638 20.1 19.4 35.7 36.6 9.8 9.6 1.8 1.5 19.4 17.1 1.0 0.9


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Others

HSIL Buy 76 117 503 2,042 2,363 14.6 14.8 12.3 16.5 6.2 4.6 0.5 0.4 7.6 9.4 0.7 0.6

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 06, 2013


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

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Market Outlook, 07-08-2013