Market Outlook 101212

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    Market OutlookDecember 10, 2012

    www.angelbroking.com

    Market OutlookDecember 10, 2012

    Dealers Diary

    The Indian market is expected to open flat to positive mirroring the positive

    opening trades in most of the Asian markets aided by Chinese November industrial

    output data which showed some strength and came at 10.1% yoy.

    The U.S. markets closed modestly higher on Friday after gains from a better-than-

    expected November jobs report shook off a drop in December consumer

    sentiment. A report from the Labor Department indicated that the non-farm payroll

    employment increased by 146,000 jobs in November compared to economist

    estimates for an increase of about 85,000 jobs and the unemployment rate fell to

    7.7% from 7.9%. Gains were pared following the release of the University of

    Michigan preliminary consumer-sentiment index for December that showed a

    decline to 74.5 from 82.7 in November. Worries about the fiscal cliff offset some

    of the positive sentiment generated by the jobs report, with lawmakers continuing

    to struggle to reach an agreement to avoid the US$600bn in automatic taxincreases and spending cuts currently due to go into effect at the end of the year.

    Meanwhile the Indian markets moved in a tight range before ending modestly

    lower on Friday, as the win on FDI vote in the Rajya Sabha was already mostly

    discounted. Investors will now watch out for the domestic industrial output data of

    October due to be released on Wednesday.

    Markets Today

    The trend deciding level for the day is 19,450 / 5,915 levels. If NIFTY trades above

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

    up to 19,536 19,648 / 5,942 5,977 levels. However, if NIFTY trades below

    19,450 / 5,915 levels for the first half-an-hour of trade then it may correct up to19,338 19,251 / 5,881 5,854 levels.

    SENSEX 19,251 19,338 19,450 19,536 19,648NIFTY 5,854 5,881 5,915 5,942 5,977

    News Analysis Go-ahead for FDI in multi-brand retail in RS too IPO Note Bharti lnfratel 2G auction: EGoM slashes base price 30% for unsold spectrum in 4 circles Hexaware Guidance cut

    Refer detailed news analysis on the following pageNet Inflows (December 08 2012)

    FII 4,144 2,004 2,140 4,487 109,506

    MFs 457 686 (230) (657) (18,254)

    FII Derivatives (December 07, 2012)

    Index Futures 1,239 869 369 11,588

    Stock Futures 1,285 1,589 (304) 32,011

    Gainers / Losers

    Gitanjali Gems 521 8.9 Hexaware Tech 97 (9.3)

    Motherson Sumi 195 7.0 Eicher Motors 2,675 (3.8)

    JSW Energy 68 5.6 Indusind Bank 411 (3.5)

    Glenmark Pharma 447 3.8 NMDC 159 (3.1)

    United Phos 127 3.2 Lanco Infra 14 (3.1)

    BSE Sensex (0.3) (62.7) 19,424

    Nifty (0.4) (23.5) 5,907

    MID CAP (0.1) (5.5) 7,070

    SMALL CAP (0.1) (7.8) 7,446

    BSE HC (0.1) (5.3) 7,971

    BSE PSU (0.3) (25.1) 7,280

    BANKEX (0.5) (74.0) 14,183

    AUTO 0.5 55.7 10,936

    METAL (0.8) (82.4) 10,569

    OIL & GAS (0.5) (44.1) 8,511

    BSE IT (1.0) (55.8) 5,644

    Dow Jones 0.6 81.1 13,155NASDAQ (0.4) (11.2) 2,978

    FTSE 0.2 13.0 5,914

    Nikkei 0.2 19.2 9,564

    Hang Seng 0.5 107.9 22,358

    Straits Times 0.9 27.1 3,106

    Shanghai Com 1.3 26.2 2,055

    INFY (0.4) (0.2) $42.8

    WIT (2.1) (0.2) $8.5IBN 0.2 0.1 $43.7

    HDB 0.1 0.0 $42.3

    Advances 1,436 678

    Declines 1,486 855

    Unchanged 130 77

    BSE 2,908

    NSE 13,417

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    Market OutlookDecember 10, 2012

    Go-ahead for FDI in multi-brand retail in RS too

    The parliamentary hurdles in the way for foreign investment in multi-brand retail

    (up to 51%) stand cleared with the government winning the vote in both houses.

    The Rajya Sabha too voted against the oppositions motion to withdraw FDI in

    multi-brand retail and led the UPA government to win the debate with a majorityof 123 votes, defeating the opposition by 14 votes. The UPA with 91 seats in the

    244-member house was supported by Bahujan Samajwadi Party (15 members)

    which decided to vote in favor of the governments decision while the Samajwadi

    Party (9 members) staged a walk-out similar to the Lok Sabha vote. Now, the

    decision rests with the respective State governments.

    Following the intensely-debated vote, we expect the logjam in the winter session of

    parliament to end. Further, we believe that the government is likely to confidently

    step up momentum on further reforms drive thereby enabling it to push through

    difficult legislations. The session lined up with heavy legislative agenda is expected

    to conclude on December 20, 2012. Amongst the 25 bills for consideration andpassing are the Companies Bill, 2011, the PFRDA Bill, 2011, the Banking Laws

    (Amendment) Bill, 2011, the Insurance Laws (Amendment) Bill, 2008 and

    The Lokpal and Lokayuktas Bill, 2011; while 10 bills are up for introduction

    including the Competition (Amendment) Bill, 2012.

    IPO Note Bharti Infratel

    Bharti Infratel is a tower and related infrastructure providing company of Bharti

    group. It is one of the largest tower infrastructure providers in terms of number of

    towers owned and operated by a company having pan India presence on a

    consolidated basis.

    Bharti Infratel is one of the largest tower infrastructure

    providers in terms of number of towers owned and operated by a company on a

    consolidated basis. Given the nationwide network of towers we believe the

    company is well placed to gain advantage over their existing and potential

    competitors.

    Bharti Infratel has a pan India presence with

    operations in all 22 telecommunications circles in India, with Bharti Infratels and

    Indus operations overlapping in four telecommunications circles. The company

    has a significant presence in B-category and C-category telecommunications

    circles, while Indus operates in the Metro and A-category and B-category

    telecommunications circles.

    Bharti Infratel has entered into MSAs

    with leading wireless telecommunications service providers in India. We believe

    long term contract agreement and the adverse consequences of contract

    termination provide stability to Bharti Infratels business, throughout the term of the

    MSAs, thereby providing comfortable visibility of future revenues.

    The Bharti group has been one of Indias leading

    business conglomerates, with operations in the telecommunications, retail,

    insurance and real estate sectors. Over more than a decade, the company created

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    Market OutlookDecember 10, 2012

    a strong brand and credibility which we believe Bharti Infratel can leverage on to

    grow its business.

    Bharti Infratel has registered a 3.4% and 9.6% CAGR in

    towers and tenancies, respectively over the last three years. The company posted

    15.9% and 21.0% revenue and EBITDA CAGR over FY2010-12. In terms ofvaluation, the current IPO price band of `210-240 implies a June 2012

    annualized EV/EBITDA of 11-13x, EV/tower of `0.5-0.56cr; P/E of 45-53x, and

    P/BV of 2.7-3.0x, which we believe is at a premium. In addition, low asset turnover

    and minimal use of leverage in a capital intensive industry have resulted in low

    RoE for Bharti Infratel over the past three years. Bharti Infratels RoE has remained

    in the range of 4.0-5.2 in the past couple of years. Also, the overcapacity in the

    industry is expected to limit the demand for rollout of new towers. Further,

    regulatory changes and the resultant uncertainty pose a risk to telecom players as

    their network rollout plans could be hampered.

    2G auction: EGoM slashes base price 30% for unsoldspectrum in 4 circles

    The EGoM on telecom has decided to reduce the base price for unsold airwaves in

    four regions - Delhi, Mumbai, Karnataka and Rajasthan - by 30% and approved

    the telecom department's plan to simultaneously sell these airwaves along with a

    portion of spectrum held by incumbent operators before March 31, 2013. The

    recently conducted 2G auctions turned out to be a damp squib, with the

    government getting less than a fourth of its revenue target of `40,000cr as there

    were no takers for about 57% of the airwaves put on sale. The ministerial panel

    also decided that the spectrum under the 900MHz would be auctioned in the

    Delhi, Mumbai and Kolkata circles. Both auctions would be held simultaneously.

    No decision was taken on the 800MHz band of CDMA spectrum. With the revision

    in base price, the government has reduced the pan-India reserve price to about

    `12,000cr, from the `14,000cr fixed for the November auction. If the government

    sells all the blocks, it would get `9,530cr, at the revised price, from Delhi, Mumbai

    and Karnataka. Eight blocks are available for auction in each circle. The four

    circles Delhi, Mumbai, Karnataka and Rajasthan in the 1,800MHz band

    accounted for more than 48% of the pan India reserve price. The price for the

    900MHz band spectrum would be double of the auction discovered price of

    1,800MHz spectrum. The inter-ministerial panel would seek the Cabinet's approval

    on the reduced base price for unsold airwaves in Delhi, Mumbai, Karnataka and

    Rajasthan.

    We believe this move is positive for the telecom players but these circles are

    saturated with more than 100% teledensity, which might keep new entrants away

    from bidding. Incumbent players will benefit from this as the payout for license

    renewal coming up from FY2014 will happen at lower rates.

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    Market OutlookDecember 10, 2012

    Hexaware Guidance cut

    Hexaware has announced downward revision of its 4QCY2012 revenue guidance

    to US$92mn from US$94.7-96.5mn earlier; and thereby its full year CY2012 USD

    revenue growth guidance is now lowered down to 18% yoy from 20% earlier. The

    company attributed this due to a sudden change in project scope and deliverablesfrom a large client which is amongst companys top-10 clients.

    Hexaware has downgraded its 4QCY2012 revenue guidance from a range of

    US$94.7-96.5mn (2-4% qoq growth) to US$92mn (1% qoq decline) due to

    changes in the scope and timeline of one specific project with one of its top 10

    clients. Also, Hurricane Sandys negative impact of US$0.45mn is built in into the

    guidance cut. Management also hinted that growth and margin in 1QCY2013

    could also be impacted, but reiterated that the worst is behind.

    Management indicated that this will have a material adverse

    impact on the profitability margin metrics during 4QCY2012 and could impact

    operating margins by 500-700bp qoq. This downward revision seems to be

    disproportionate as the revenue cut is of US$2.5-4.5mn while EBITDA is being cut

    by US$6-7mn.

    The downward revision in guidance and margin decline has

    lead to our CY2013E revenue growth estimate being revised down to 13.5% from

    15.0% and EBITDA margin to 19.8% from 21.1% earlier. EPS estimate of CY2012

    and CY2013 is being revised down by 6% and 8.5% to `10.7 and `11.2,

    respectively.

    : We believe that this is a one-off event and the rest of thebusiness currently continues to operate as earlier. This move is undoubtedly

    negative, but we believe the steep ~25% fall in Hexawares stock price over the

    past three months, captures most of the negatives at this juncture and the current

    level makes a good entry to the stock.

    Economic and Political News

    Regulatory IT spends to grow five times by 2015: Goldman Sachs Telcos' FY2011 revenue collection at `1.62lakh cr: Government 7.3 magnitude earthquake hits Japan, but no reports of any serious damageCorporate News

    DLF to raise up to `3,000cr by this fiscal end Dr Reddy's launches Pamorelin LA in India Government to infuse `2,000cr into Air India SKS raises `54cr via securitizationSource: Economic Times, Business Standard, Business Line, Financial Express, Mint

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    Global economic events release calendar

    Date Time Country Event Description Unit Period Bloomberg Data

    Last Reported Estimated

    December 10, 2012 5:29PM China Exports YoY% % Change Nov 11.60 9.00

    5:29PM India Imports YoY% % Change Nov 7.37 --

    5:29PM India Exports YoY% % Change Nov (1.63) --

    December 12, 2012 11:00AM India Industrial Production YoY % Change Oct (0.40) 5.00

    3:00PM UK Jobless claims change % Change Nov 10.10 7.00

    11:00PM US FOMC rate decision % Dec 12 0.25 0.25

    December 13, 2012 7:00PM US Initial Jobless claims Thousands Dec 8 370.00 370.00

    7:00PM US Producer Price Index (mom) % Change Nov (0.20) (0.50)

    December 14, 2012 2:00PM Germany PMI Manufacturing Value Dec A 46.80 47.30

    2:00PM Germany PMI Services Value Dec A 49.70 50.00

    12:00PM India Monthly Wholesale Prices YoY% % Change Nov 7.45 7.57

    3:30PM Euro Zone Euro-Zone CPI (YoY) % Nov 2.50 2.20

    7:00PM US Consumer price index (mom) % Change Nov 0.10 (0.20)

    7:45PM US Industrial Production % Nov (0.43) 0.20

    December 18, 2012 11:00AM India RBI Repo rate % Dec 18 8.00 --

    11:00AM India RBI Cash Reserve ratio % Dec 18 4.25 --

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

    11:00AM India RBI Reverse Repo rate % Dec 18 7.00 --

    December 19, 2012 7:00PM US Housing Starts Thousands Nov 894.00 868.00

    7:00PM US Building permits Thousands Nov 868.00 875.00

    December 20, 2012 8:30PM Euro Zone Euro-Zone Consumer Confidence Value Dec A (26.90) --

    7:00PM US GDP Qoq (Annualised) % Change 3Q T 2.70 2.80

    8:30PM US Existing home sales Millions Nov 4.79 4.84

    December 21, 2012 3:00PM UK GDP (YoY) % Change 3Q F (0.10) --December 27, 2012 8:30PM US Consumer Confidence S.A./ 1985=100 Dec 73.70 --

    8:30PM US New home sales Thousands Nov 368.00 --

    January 1, 2013 6:30AM China PMI Manufacturing Value Dec F 50.60 --

    January 2, 2013 3:00PM UK PMI Manufacturing Value Dec 49.10 --

    2:25PM Germany Unemployment change (000's) Thousands Dec 5.00 --

    January 4, 2013 7:00PM US Change in Nonfarm payrolls Thousands Dec 146.00 --

    7:00PM US Unnemployment rate % Dec 7.70 --

    January 10, 2013 5:30PM UK BOE Announces rates % Ratio Jan 10 0.50 0.50

    6:15PM Euro Zone ECB announces interest rates % Jan 10 0.75 --

    January 11, 2013 3:00PM UK Industrial Production (YoY) % Change Nov (3.00) --

    January 13, 2013 5:29PM China Real GDP (YoY) % Change 4Q 7.40 --

    Source: Bloomberg, Angel Research

    December 10, 2012

    Market Outlook

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    Market OutlookDecember 10, 2012

    www.angelbroking.com

    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

    Source: Bloomberg, Angel Research

    Exhibit 6 :Key policy rates

    Source: RBI, Angel Research

    3. 5

    5. 7

    9. 0

    7. 5

    11.2

    8. 5

    7. 68 .2

    9. 2

    8. 0

    6. 76. 1

    5. 3 5. 5 5. 3

    3. 0

    4. 0

    5. 0

    6. 0

    7. 0

    8. 0

    9. 0

    10.0

    11.0

    12.0

    4Q

    FY09

    1Q

    FY10

    2Q

    FY10

    3Q

    FY10

    4Q

    FY10

    1Q

    FY11

    2Q

    FY11

    3Q

    FY11

    4Q

    FY11

    1Q

    FY12

    2Q

    FY12

    3Q

    FY12

    4Q

    FY12

    1Q

    FY13

    2Q

    FY13

    (%)

    (5.0)

    6 .0

    2 .7

    1 .0

    4 .3

    (2.8) (1.3)

    2 .5

    (2.0)(0.2)

    2 .3

    (0.4)

    (6.0)

    (4.0)

    (2.0)

    -

    2 .0

    4 .0

    6 .0

    8 .0

    O

    ct-11

    Nov-11

    Dec-11

    Jan-12

    Feb-12

    Mar-12

    Apr-12

    M

    ay-12

    Jun-12

    Jul-12

    Aug-12

    Sep-12

    (%)

    9. 5

    7. 76. 9

    7. 4 7. 7 7. 5 7. 6 7. 6 7. 58. 0 7. 8 7. 5

    0. 0

    1. 0

    2. 0

    3. 0

    4. 0

    5. 0

    6. 0

    7. 0

    8. 0

    9. 0

    10.0

    Nov

    -11

    Dec

    -11

    Jan

    -12

    Fe

    b-

    12

    M

    ar

    -12

    Apr

    -12

    M

    ay

    -12

    Jun

    -12

    Ju

    l-12

    Aug

    -12

    Sep

    -12

    O

    ct-12

    (%)

    48.0

    50.0

    52.0

    54.0

    56.0

    58.0

    60.0

    Nov

    -11

    Dec

    -11

    Jan

    -12

    Fe

    b-1

    2

    M

    ar

    -12

    Apr

    -12

    M

    ay

    -12

    Jun

    -12

    Ju

    l-12

    Aug

    -12

    Sep

    -12

    O

    ct-12

    Nov

    -12

    M fg. PM I Services PM I

    (30.0)

    (15.0)

    0 .0

    15.0

    30.0

    45.0

    Nov

    -11

    Dec

    -11

    Jan

    -12

    Fe

    b-1

    2

    M

    ar-

    12

    Apr-

    12

    M

    ay

    -12

    Jun

    -12

    Ju

    l-12

    Aug

    -12

    Sep

    -12

    O

    ct-12

    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

    Nov

    -11

    Dec

    -11

    Jan

    -12

    Fe

    b-

    12

    M

    ar-

    12

    Apr-

    12

    M

    ay

    -12

    Jun

    -12

    Ju

    l-12

    Aug

    -12

    Sep

    -12

    O

    ct-12

    Nov

    -12

    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 158 - 3,080 1,466 1,686 14.8 14.8 7.0 8.1 22.6 19.6 4.8 4.1 22.6 22.5 2.2 1.9

    United Phosphorus Buy 127 170 5,870 8,421 9,263 16.5 16.5 15.0 17.0 8.5 7.5 1.2 1.1 15.6 15.5 0.8 0.7

    Auto & Auto Ancillary

    Amara Raja Batteries Neutral 255 - 4,357 2,911 3,321 16.2 16.2 17.3 19.8 14.7 12.9 4.0 3.2 31.1 27.6 1.4 1.2

    Apollo Tyres Accumulate 86 96 4,347 13,713 15,341 11.2 11.2 12.5 14.8 6.9 5.8 1.3 1.1 20.2 19.9 0.5 0.4

    Ashok Leyland Accumulate 28 31 7,463 14,490 16,606 9.5 9.6 2.2 2.9 12.6 9.8 2.4 2.1 13.6 16.1 0.6 0.5

    Automotive Axle# Neutral 361 - 546 1,103 1,240 11.0 11.3 39.1 45.0 9.2 8.0 1.7 1.6 19.5 22.8 0.5 0.4Bajaj Auto Neutral 1,940 - 56,129 21,121 23,642 18.4 18.5 108.7 122.6 17.9 15.8 7.4 5.9 46.2 41.6 2.3 1.9

    Bharat Forge Buy 261 324 6,074 6,754 7,565 15.5 15.7 18.8 23.2 13.9 11.3 2.4 2.1 18.5 19.7 1.1 0.9

    Bosch India* Neutral 9,141 - 28,703 8,776 10,276 16.6 18.0 331.9 417.7 27.5 21.9 5.1 4.3 18.7 19.5 2.9 2.4

    CEAT Buy 107 163 366 4,989 5,634 8.2 8.5 27.1 40.8 3.9 2.6 0.5 0.4 13.2 17.2 0.3 0.2

    Exide Industries Accumulate 148 155 12,580 6,229 7,200 14.8 15.8 7.2 9.0 20.6 16.5 3.6 3.1 18.5 19.9 1.7 1.4

    FAG Bearings* Neutral 1,692 - 2,812 1,489 1,750 16.5 17.5 103.3 126.9 16.4 13.3 3.2 2.6 21.3 21.6 1.7 1.4

    Hero Motocorp Accumulate 1,826 1,956 36,471 24,743 27,996 14.8 15.2 118.2 130.4 15.5 14.0 6.6 5.3 48.3 41.9 1.2 1.0

    JK Tyre Buy 122 165 502 7,517 8,329 6.6 6.6 37.2 41.3 3.3 3.0 0.6 0.5 18.8 17.8 0.3 0.3

    Mahindra and Mahindra Accumulate 937 986 57,521 40,035 46,272 11.5 11.6 54.7 62.8 17.1 14.9 3.8 3.2 24.3 23.4 1.2 1.0

    Maruti Neutral 1,510 - 43,627 42,019 50,246 7.3 8.6 66.1 94.4 22.8 16.0 2.6 2.3 11.9 15.1 0.9 0.7

    Motherson Sumi Neutral 195 - 11,434 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 0.5

    Subros Accumulate 30 35 182 1,286 1,479 9.4 9.7 2.6 5.1 11.7 6.0 0.7 0.6 5.6 10.3 0.4 0.4

    Tata Motors Buy 282 319 75,106 192,330 219,770 12.8 13.1 37.0 44.5 7.6 6.3 2.1 1.6 31.2 28.9 0.4 0.4

    TVS Motor Accumulate 39 45 1,872 7,466 8,290 6.2 6.3 4.8 5.6 8.2 7.0 1.4 1.2 18.2 18.7 0.2 0.2

    Capital Goods

    ABB* Sell 717 573 15,194 7,796 9,907 4.8 7.8 9.2 22.0 77.9 32.6 5.7 5.0 7.5 16.4 1.9 1.5BGR Energy Neutral 268 - 1,937 3,605 4,542 11.8 10.7 25.1 27.9 10.7 9.6 1.6 1.4 31.1 27.1 1.0 0.9

    BHEL Neutral 243 - 59,452 47,801 43,757 18.5 18.0 24.6 21.8 9.9 11.1 3.0 2.5 33.5 24.5 1.1 1.2

    Blue Star Buy 196 242 1,766 2,763 2,948 3.1 5.6 2.6 8.6 74.7 23.0 4.3 3.8 5.9 17.6 0.7 0.7

    Crompton Greaves Buy 119 145 7,605 12,370 14,277 5.2 7.3 4.0 7.8 29.6 15.2 2.0 1.8 6.9 12.6 0.7 0.6

    Jyoti Structures Accumulate 49 53 400 2,794 3,048 10.6 10.6 9.2 11.7 5.3 4.2 0.6 0.5 10.9 12.5 0.4 0.4

    KEC International Accumulate 66 73 1,698 6,858 7,431 7.1 7.5 8.3 9.8 8.0 6.8 1.4 1.2 25.1 24.0 0.4 0.4

    LMW Reduce 2,147 1,992 2,419 2,369 2,727 11.7 11.7 143.4 166.0 15.0 12.9 2.5 2.3 17.4 18.4 0.5 0.4

    Thermax Neutral 608 - 7,241 5,514 5,813 9.3 10.2 28.1 31.2 21.6 19.5 3.9 3.4 19.2 18.5 1.2 1.1

    www.angelbroking.com

    Market Outlook

    Stock Watch

    December 10, 2012

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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

    Cement

    ACC Neutral 1,414 - 26,550 11,085 12,415 21.6 21.4 79.4 83.1 17.8 17.0 3.5 3.1 20.1 19.2 2.1 1.8

    Ambuja Cements Neutral 206 - 31,792 10,272 11,884 26.4 26.1 11.5 12.9 18.0 16.0 3.9 3.5 20.8 21.1 2.7 2.2

    India Cements Neutral 91 - 2,786 4,293 4,666 17.7 18.1 8.6 10.8 10.6 8.4 0.8 0.7 7.5 9.0 1.0 0.9

    J K Lakshmi Cements Accumulate 131 143 1,605 2,082 2,423 22.9 23.1 20.8 22.5 6.3 5.8 1.1 1.0 18.4 17.4 0.9 1.2

    Madras Cements Neutral 206 - 4,897 3,814 4,045 29.3 27.5 18.7 19.2 11.0 10.7 2.0 1.7 19.9 17.4 1.9 1.7

    Shree Cements^ Neutral 4,299 - 14,977 5,701 6,210 29.7 28.1 240.7 260.7 17.9 16.5 4.3 3.5 27.1 23.6 2.1 1.7

    UltraTech Cement Neutral 1,959 - 53,694 21,368 24,043 22.5 23.5 103.5 121.4 18.9 16.1 3.5 3.0 20.2 20.1 2.5 2.3Construction

    Ashoka Buildcon Buy 210 304 1,106 2,034 2,315 22.4 22.4 27.1 31.7 7.8 6.6 1.0 0.8 13.1 13.4 1.8 2.1

    Consolidated Co Neutral 14 - 265 2,262 2,522 6.7 7.5 1.5 2.7 9.6 5.4 0.4 0.4 4.4 7.5 0.4 0.4

    IRB Infra Buy 142 164 4,703 3,843 4,212 43.1 43.6 16.8 17.8 8.4 7.9 1.4 1.3 18.3 17.0 3.3 3.6

    ITNL Buy 213 225 4,137 6,564 7,054 27.2 27.4 26.3 29.0 8.1 7.3 1.3 1.1 14.0 11.8 2.7 2.7

    IVRCL Infra Neutral 46 - 1,422 4,249 6,897 7.8 8.2 0.3 3.3 150.3 14.0 0.6 0.6 0.4 4.4 0.9 0.6

    Jaiprakash Asso. Neutral 105 - 22,418 13,842 15,863 26.9 26.4 3.7 4.6 28.6 23.0 1.7 1.6 6.2 7.3 3.0 2.7

    Larsen & Toubro Neutral 1,673 - 102,849 60,556 69,167 11.2 11.6 73.8 85.5 22.7 19.6 3.6 3.2 13.5 14.1 1.9 1.6

    Nagarjuna Const. Reduce 48 44 1,239 5,947 6,569 8.5 8.6 3.1 4.1 15.6 11.8 0.5 0.5 3.3 4.2 0.6 0.6

    Punj Lloyd Neutral 60 - 2,001 11,892 13,116 9.0 9.0 1.8 3.2 33.3 18.8 0.7 0.7 2.5 3.7 0.6 0.5

    Sadbhav Engg. Buy 129 168 1,952 2,344 2,804 10.6 10.7 7.2 8.7 18.0 14.9 2.2 1.9 13.0 13.5 1.2 1.0

    Simplex Infra Buy 205 251 1,014 6,882 8,032 9.1 9.1 23.2 31.3 8.8 6.5 0.8 0.7 9.1 11.2 0.5 0.4

    Financials

    Allahabad Bank Neutral 159 - 7,955 6,392 7,238 2.7 2.8 30.3 33.3 5.3 4.8 0.8 0.7 14.8 14.5 - -

    Andhra Bank Neutral 118 - 6,586 4,731 5,431 2.9 3.0 21.5 21.8 5.5 5.4 0.9 0.8 15.2 13.8 - -

    Axis Bank Accumulate 1,334 1,476 56,958 15,686 18,687 3.1 3.2 116.8 138.0 11.4 9.7 2.1 1.8 20.0 20.2 - -Bank of Baroda Neutral 797 - 31,222 15,436 18,208 2.5 2.6 111.8 137.4 7.1 5.8 1.1 0.9 15.8 17.0 - -

    Bank of India Neutral 293 - 16,835 12,491 14,883 2.2 2.4 43.8 63.7 6.7 4.6 0.9 0.8 12.1 15.8 - -

    Bank of Maharashtra Neutral 58 - 3,396 3,563 3,876 3.1 3.1 9.7 12.0 5.9 4.8 0.8 0.7 14.6 16.1 - -

    Canara Bank Neutral 480 - 21,262 10,699 12,213 2.1 2.2 67.3 80.1 7.1 6.0 1.0 0.9 13.7 14.6 - -

    Central Bank Neutral 81 - 5,948 7,171 8,236 2.5 2.6 16.4 21.5 4.9 3.8 0.9 0.7 12.7 14.9 - -

    Corporation Bank Neutral 428 - 6,342 4,780 5,569 2.0 2.1 101.8 99.2 4.2 4.3 0.7 0.6 17.0 14.7 - -

    Dena Bank Accumulate 117 123 4,083 3,087 3,453 2.7 2.8 25.9 24.1 4.5 4.8 0.8 0.7 19.4 15.6 - -

    Federal Bank Neutral 482 - 8,241 2,617 2,968 3.3 3.2 45.9 51.7 10.5 9.3 1.3 1.2 13.1 13.3 - -

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    December 10, 2012

  • 7/30/2019 Market Outlook 101212

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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

    Financials

    HDFC Neutral 837 - 129,013 7,336 8,802 3.5 3.5 31.5 37.8 26.6 22.1 5.3 4.7 34.8 32.1 - -

    HDFC Bank Neutral 693 - 163,819 21,696 26,811 4.4 4.5 28.7 36.0 24.2 19.2 4.6 3.9 20.7 22.0 - -

    ICICI Bank Accumulate 1,131 1,270 130,005 22,271 26,690 3.0 3.0 69.2 83.1 16.3 13.6 2.0 1.8 14.2 15.7 - -

    IDBI Bank Neutral 109 - 13,992 7,684 9,264 1.8 2.1 15.6 22.0 7.0 5.0 0.8 0.7 10.9 13.9 - -

    Indian Bank Accumulate 193 202 8,297 5,874 6,551 3.2 3.2 40.6 41.8 4.8 4.6 0.8 0.7 18.1 16.4 - -

    IOB Neutral 84 - 6,695 7,050 8,313 2.3 2.5 12.3 19.9 6.9 4.2 0.6 0.6 8.8 13.1 - -

    J & K Bank Neutral 1,403 - 6,801 2,762 2,885 3.6 3.6 226.7 193.0 6.2 7.3 1.4 1.2 24.4 17.7 - -LIC Housing Finance Accumulate 273 298 13,795 1,799 2,255 2.3 2.4 20.3 27.3 13.4 10.0 2.1 1.8 16.9 19.7 - -

    Oriental Bank Neutral 346 - 10,102 6,277 7,090 2.6 2.7 60.5 65.1 5.7 5.3 0.9 0.8 15.0 14.4 - -

    Punjab Natl.Bank Neutral 821 - 27,847 19,652 22,601 3.2 3.3 135.0 164.3 6.1 5.0 1.0 0.9 16.3 17.3 - -

    South Ind.Bank Reduce 26 25 3,534 1,556 1,750 2.8 2.7 3.5 3.9 7.6 6.9 1.3 1.1 19.1 16.9 - -

    St Bk of India Accumulate 2,311 2,437 155,069 61,883 71,546 3.4 3.4 227.2 257.5 10.2 9.0 1.8 1.5 17.8 17.7 - -

    Syndicate Bank Neutral 130 - 7,849 6,756 7,783 3.0 3.0 26.3 27.1 5.0 4.8 0.9 0.8 18.3 16.6 - -

    UCO Bank Neutral 79 - 5,255 5,234 6,097 2.3 2.4 11.8 14.7 6.7 5.4 1.1 0.9 11.9 13.4 - -

    Union Bank Neutral 252 - 13,857 9,912 11,536 2.8 2.9 40.4 46.7 6.2 5.4 1.0 0.9 16.1 16.4 - -

    United Bank Neutral 76 - 2,726 3,500 3,912 2.6 2.8 15.8 21.2 4.8 3.6 0.6 0.5 13.1 15.7 - -

    Vijaya Bank Neutral 62 - 3,065 2,354 2,754 2.0 2.2 7.4 10.2 8.4 6.1 0.8 0.8 9.3 11.9 - -

    Yes Bank Accumulate 455 492 16,261 3,270 4,240 2.8 3.0 34.5 42.2 13.2 10.8 2.8 2.3 23.5 23.5 - -

    FMCG

    Asian Paints Neutral 4,309 - 41,335 11,198 13,184 16.2 16.2 123.7 146.4 34.9 29.4 11.9 9.3 38.1 35.4 3.7 3.1

    Britannia Buy 495 584 5,922 5,627 6,581 4.9 5.7 18.3 24.7 27.1 20.1 9.9 7.6 39.1 42.7 1.0 0.8

    Colgate Neutral 1,419 - 19,304 3,146 3,573 20.6 21.4 36.4 42.5 39.0 33.4 36.1 30.2 102.0 98.5 6.1 5.3

    Dabur India Neutral 130 - 22,658 6,124 7,101 17.0 16.8 4.5 5.2 29.1 24.9 12.0 9.5 43.2 41.5 3.7 3.1GlaxoSmith Con* Neutral 3,760 - 15,813 3,124 3 ,663 17.1 17.6 1 04.5 1 23.8 36.0 30.4 11.2 9.0 34.4 32.8 4.8 4.0

    Godrej Consumer Neutral 712 - 24,236 6,355 7,548 18.4 18.6 22.8 27.6 31.2 25.8 7.1 5.9 26.4 26.1 4.1 3.4

    HUL Neutral 531 - 114,778 25,350 28,974 13.3 13.5 14.7 17.1 36.0 31.1 28.5 20.1 84.5 75.8 4.3 3.8

    ITC Neutral 301 - 237,273 29,409 34,060 35.7 36.1 9.3 10.9 32.3 27.6 10.7 8.9 35.8 35.3 7.7 6.6

    Marico Neutral 220 - 14,174 4,840 5,643 13.1 13.1 6.2 7.8 35.6 28.2 6.8 5.5 25.4 22.6 3.0 2.5

    Nestle* Neutral 4,827 - 46,541 8,529 10,079 20.8 21.1 113.1 137.8 42.7 35.0 25.6 17.9 70.5 60.2 5.5 4.6

    Tata Global Neutral 170 - 10,504 7,207 7,927 9.7 10.0 6.6 7.8 25.7 21.7 2.6 2.5 8.6 9.5 1.3 1.2

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    December 10, 2012

  • 7/30/2019 Market Outlook 101212

    10/14

    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

    IT

    HCL Tech^ Neutral 614 - 42,634 24,214 26,772 19.5 18.1 44.0 48.0 14.0 12.8 3.3 2.8 24.0 22.0 1.8 1.5

    Hexaware* Buy 97 135 2,863 1,944 2,159 21.8 21.1 11.4 12.2 8.5 7.9 2.2 1.9 26.4 24.1 1.4 1.2

    Infosys Accumulate 2,320 2,573 133,205 39,174 41,580 29.5 30.4 159.2 171.6 14.6 13.5 3.5 3.1 24.1 23.1 2.9 2.7

    Infotech Enterprises Neutral 194 - 2,170 1,886 2,032 17.9 17.3 18.7 20.2 10.4 9.6 1.6 1.4 14.9 14.0 0.8 0.7

    KPIT Cummins Accumulate 121 132 2,163 2,195 2,317 15.5 15.0 10.7 12.1 11.3 10.0 2.4 1.9 21.0 19.8 1.0 0.9

    Mahindra Satyam Accumulate 98 115 11,557 7,597 8,141 20.0 18.8 9.7 10.4 10.2 9.4 2.8 2.2 27.5 22.9 1.2 1.0

    Mindtree Accumulate 677 747 2,781 2,324 2,437 20.0 17.7 73.3 74.7 9.2 9.1 2.2 1.8 24.1 19.7 1.0 0.8Mphasis& Neutral 391 - 8,224 5,700 5,993 18.0 16.9 37.0 37.3 10.6 10.5 1.5 1.3 14.3 12.6 1.0 0.8

    NIIT Accumulate 33 36 545 1,048 1,161 9.3 10.9 4.2 6.2 7.9 5.3 0.8 0.8 10.5 14.1 0.3 0.2

    Persistent Neutral 491 - 1,966 1,261 1,352 26.4 24.7 48.2 54.0 10.2 9.1 1.9 1.6 19.0 17.9 1.2 1.1

    TCS Accumulate 1,268 1,410 248,166 61,053 67,313 28.7 29.1 69.7 76.2 18.2 16.6 5.9 4.8 32.6 29.1 4.0 3.5

    Tech Mahindra Buy 881 1,070 11,249 6,603 7,150 19.8 18.4 92.9 102.0 9.5 8.6 2.2 1.8 23.7 21.0 1.8 1.6

    Wipro Accumulate 380 421 93,459 43,219 47,241 20.0 20.0 26.1 28.1 14.5 13.5 2.8 2.4 19.3 17.9 1.8 1.6

    Media

    D B Corp Buy 217 259 3,987 1,581 1,784 23.3 25.0 11.6 14.4 18.8 15.1 3.6 3.1 21.0 22.3 2.4 2.1

    HT Media Accumulate 103 113 2,420 2,111 2,272 15.0 15.2 7.4 8.3 14.0 12.5 1.5 1.4 11.3 11.4 0.8 0.7

    Jagran Prakashan Accumulate 101 117 3,197 1,503 1,681 23.1 23.1 6.4 7.3 15.8 13.9 3.9 3.5 25.8 26.5 2.3 2.0

    PVR Neutral 307 - 888 682 786 17.3 16.9 17.6 19.7 17.5 15.7 2.1 1.8 14.9 14.5 1.7 1.4

    Sun TV Network Neutral 419 - 16,502 1,942 2,237 77.2 75.5 17.6 19.1 23.8 21.9 5.9 5.3 25.8 25.2 8.0 6.9

    Metals & Mining

    Bhushan Steel Neutral 450 - 9,561 11,307 14,287 29.5 29.1 45.1 51.0 10.0 8.8 1.2 1.0 12.2 12.2 2.9 2.3

    Coal India Neutral 363 - 229,410 66,666 70,292 25.7 27.3 24.2 26.6 15.0 13.6 4.4 3.6 33.1 29.1 2.5 2.2

    Electrosteel Castings Buy 25 29 856 1,984 2,074 10.6 11.6 0.8 2.0 29.6 12.2 0.5 0.2 1.7 4.1 0.6 0.6Hind. Zinc Neutral 139 - 58,605 12,446 13,538 52.3 52.9 15.0 16.4 9.3 8.5 1.8 1.5 21.4 19.7 2.8 2.2

    Hindalco Neutral 124 - 23,712 79,148 89,258 9.4 9.0 15.0 15.6 8.3 8.0 0.7 0.7 8.8 8.4 0.7 0.6

    JSW Steel Neutral 766 - 17,081 39,586 41,459 17.6 17.0 78.7 90.1 9.7 8.5 1.0 0.9 10.2 10.7 0.8 0.8

    MOIL Neutral 257 - 4,322 941 1,019 47.3 48.3 25.8 28.1 10.0 9.2 1.6 1.4 16.7 16.2 2.2 1.9

    Monnet Ispat Buy 296 344 1,901 2,501 3,264 22.2 24.6 41.8 55.2 7.1 5.4 0.7 0.7 11.3 13.4 1.8 1.3

    Nalco Reduce 48 44 12,409 6,898 7,841 9.9 14.7 2.0 3.2 24.3 15.1 1.1 1.0 4.3 6.8 1.3 1.2

    NMDC Buy 159 198 62,920 11,209 12,525 78.4 78.3 18.5 20.6 8.6 7.7 2.1 1.7 27.0 24.6 3.9 3.2

    SAIL Neutral 82 - 34,056 47,252 60,351 14.2 14.8 9.6 11.7 8.6 7.0 0.8 0.7 9.4 10.6 1.2 1.0

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    December 10, 2012

  • 7/30/2019 Market Outlook 101212

    11/14

    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

    Metals & Mining

    Sesa Goa Neutral 188 - 16,348 4,551 6,640 32.8 34.4 33.7 39.3 5.6 4.8 1.0 0.8 18.3 18.3 4.3 2.9

    Sterlite Inds Neutral 113 - 37,925 43,185 45,442 23.3 23.7 16.8 17.9 6.7 6.3 0.7 0.7 11.6 11.2 0.9 0.8

    Tata Steel Buy 395 463 38,353 145,725 154,108 8.3 9.5 22.0 44.5 17.9 8.9 0.9 0.8 4.9 9.3 0.6 0.5

    Sarda Accumulate 136 153 489 1,442 1,494 17.6 17.3 27.2 28.7 5.0 4.8 0.6 0.5 11.5 11.0 0.7 0.7

    Prakash Industries Buy 50 73 678 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 0.4

    Godawari Power andIspat

    Buy 119 143 377 2,342 2,470 13.7 15.3 27.7 33.8 4.3 3.5 0.4 0.4 10.9 11.4 0.6 0.6

    Oil & Gas

    Cairn India Accumulate 333 382 63,599 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 353 - 44,720 46,652 54,142 15.7 15.7 34.0 35.3 10.4 10.0 1.8 1.6 18.5 16.8 0.7 0.5

    ONGC Buy 268 312 228,902 147,139 154,821 33.9 33.7 30.7 32.3 8.7 8.3 1.5 1.4 18.3 17.2 1.3 1.2

    Reliance Industries Neutral 834 - 273,163 362,700 380,031 7.9 8.0 60.0 63.3 13.9 13.2 1.3 1.2 11.1 10.6 0.7 0.7

    Gujarat Gas* Neutral 302 - 3,877 3,128 3,707 13.2 11.7 22.8 23.5 13.3 12.8 4.0 3.6 33.2 29.2 1.1 0.9

    Indraprastha Gas Neutral 262 - 3,674 3,213 3,643 23.3 23.5 24.3 25.7 10.8 10.2 2.5 2.1 25.0 22.1 1.3 1.1

    Petronet LNG Accumulate 162 183 12,176 30,077 33,570 6.6 6.3 15.1 15.3 10.7 10.6 2.7 2.2 28.4 23.1 0.4 0.4

    Gujarat State PetronetLtd.

    Neutral 77 - 4,347 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 3.7

    Pharmaceuticals

    Alembic Pharma Buy 66 91 1,235 1,624 1,855 14.2 15.6 6.6 9.1 9.9 7.2 2.5 1.9 27.9 29.9 0.9 0.8

    Aurobindo Pharma Neutral 192 - 5,603 5,243 5,767 14.6 14.6 11.8 12.6 16.3 15.3 2.0 1.7 17.9 16.4 1.6 1.4

    Aventis* Neutral 2,185 - 5,033 1,482 1,682 15.5 15.5 95.1 104.4 23.0 20.9 4.1 3.2 18.6 17.0 3.2 2.8

    Cadila Healthcare Accumulate 846 926 17,317 6,148 7,386 18.6 19.6 32.7 44.8 25.9 18.9 5.7 4.5 23.7 26.6 3.2 2.6

    Cipla Neutral 410 - 32,936 8,151 9,130 25.0 24.0 19.5 20.9 21.0 19.6 3.7 3.1 18.8 17.2 3.9 3.3

    Dr Reddy's Neutral 1,838 - 31,208 10,696 11,662 20.7 21.0 83.7 92.9 22.0 19.8 4.5 3.8 22.4 20.8 3.2 2.8

    Dishman Pharma Buy 118 145 950 1,280 1,536 20.2 20.2 10.4 14.5 11.3 8.1 0.9 0.9 8.7 11.0 1.4 1.2

    GSK Pharma* Neutral 2,058 - 17,429 2,651 2,993 31.7 31.2 76.0 82.4 27.1 25.0 7.8 7.0 20.1 26.3 5.7 5.0

    Indoco Remedies Buy 66 89 606 685 837 15.2 15.2 7.4 8.9 8.9 7.4 1.4 1.2 16.4 17.0 1.1 0.9

    Ipca labs Accumulate 462 485 5,822 2,850 3,474 21.0 21.0 29.9 37.3 15.4 12.4 3.7 2.9 26.7 26.4 2.2 1.8

    Lupin Accumulate 599 652 26,791 8,426 10,082 19.7 20.0 26.3 31.3 22.8 19.1 5.3 4.3 26.0 24.7 3.3 2.7

    Ranbaxy* Neutral 506 - 21,392 12,046 11,980 18.0 15.8 31.3 29.8 16.2 17.0 5.5 4.4 39.1 28.9 1.8 1.8

    Sun Pharma Neutral 700 - 72,327 9,752 12,134 41.6 41.6 26.0 28.2 26.9 24.8 5.0 4.3 20.3 18.8 6.7 5.2

    Power

    CESC Neutral 326 - 4,071 5,218 5,644 24.2 23.8 44.6 47.6 7.3 6.9 0.8 0.7 11.0 10.6 1.5 1.5

    GIPCL Accumulate 70 78 1,054 1,523 1,568 30.3 30.3 5.4 11.5 12.9 6.1 0.7 0.7 5.6 11.3 1.2 1.0

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    12/14

    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

    Power

    NTPC Neutral 160 - 131,886 74,111 85,789 22.7 23.1 12.1 13.7 13.2 11.6 1.6 1.5 12.6 13.2 2.4 2.2

    Real Estate

    Anant Raj Sell 98 78 2,892 657 875 52.0 56.1 8.4 12.7 11.7 7.7 0.7 0.7 6.3 8.9 5.8 4.4

    DLF Neutral 221 - 37,488 9,878 12,033 44.7 46.1 9.6 13.4 23.0 16.5 1.5 1.4 6.4 8.7 6.3 5.2

    HDIL Neutral 117 - 4,904 2,441 3,344 55.1 48.2 22.7 26.6 5.2 4.4 0.4 0.4 8.8 9.4 3.9 2.9

    MLIFE Neutral 414 - 1,691 813 901 26.2 26.6 32.0 37.1 12.9 11.2 1.3 1.2 10.4 11.0 2.5 2.1

    TelecomBharti Airtel Neutral 323 - 122,470 81,984 90,718 32.1 33.8 10.9 16.9 29.6 19.1 2.3 2.0 7.6 10.6 2.2 1.8

    Idea Cellular Neutral 97 - 32,103 22,234 24,161 26.9 27.7 3.3 4.9 29.3 19.7 2.3 2.0 7.7 10.3 1.9 1.7

    Rcom Neutral 74 - 15,202 21,090 22,308 31.8 29.9 3.0 3.8 24.2 19.4 0.4 0.4 1.7 2.1 2.4 2.1

    zOthers

    Abbott India Accumulate 1,446 1,590 3,072 1,629 1,886 11.8 13.3 60.8 79.5 23.8 18.2 4.9 4.1 22.0 24.4 1.7 1.4

    Bajaj Electricals Neutral 205 - 2,039 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 Neutral 415 - 525 427 528 15.7 14.6 30.0 34.0 13.8 12.2 3.0 2.5 24.6 22.5 1.3 1.1

    Cravatex Buy 429 545 111 272 308 7.2 7.3 37.5 45.4 11.5 9.5 2.7 2.2 23.7 22.7 0.5 0.4

    CRISIL Neutral 1,024 - 7,189 982 1,136 34.3 34.3 34.3 40.0 29.8 25.6 13.5 10.8 50.9 46.9 6.9 5.8

    Finolex Cables Neutral 60 - 919 2,304 2,552 9.9 9.1 8.2 10.1 7.4 6.0 1.0 0.9 13.7 14.7 0.4 0.3

    Force Motors Accumulate 501 537 653 2,318 2,700 5.0 5.7 45.0 67.0 11.1 7.5 0.6 0.5 5.0 7.0 0.2 0.2

    Goodyear India Accumulate 335 360 774 1,494 1,607 6.4 7.8 23.9 33.0 14.0 10.2 2.2 1.9 16.5 20.1 0.3 0.3

    Greenply Industries Neutral 310 - 748 1,925 2,235 10.6 10.9 29.6 44.1 10.5 7.0 1.7 1.4 16.8 21.0 0.7 0.6

    Hitachi Buy 129 146 295 873 989 4.4 6.5 6.4 12.2 20.3 10.6 1.6 1.4 8.3 14.4 0.4 0.3

    Honeywell Automation* Buy 2,354 2,842 2,081 1,745 1,993 4.0 5.3 59.5 90.4 39.6 26.0 3.0 2.6 8.1 11.3 1.1 0.9

    Styrolution ABS India* Accumulate 701 744 1,233 1,059 1,116 8.5 9.5 36.0 42.0 19.5 16.7 2.8 2.5 15.4 16.0 1.2 1.1ITD Cementation Neutral 235 - 270 1,323 1,455 12.4 12.4 23.2 27.7 10.1 8.5 0.7 0.6 6.8 7.6 0.7 0.6

    Jyothy Laboratories Neutral 184 - 2,967 1,228 1,443 9.0 10.9 3.9 6.4 47.3 28.8 4.7 4.3 10.1 15.6 3.0 2.5

    MCX Reduce 1,538 1,440 7,843 553 624 65.3 66.3 62.5 72.0 24.6 21.4 6.8 5.8 27.5 27.4 11.1 9.4

    MRF Accumulate 11,811 12,884 5,009 11,804 12,727 10.4 10.5 1,289.9 1,431.3 9.2 8.3 1.8 1.5 21.3 19.4 0.6 0.5

    Page Industries Neutral 3,432 - 3,828 836 1,023 20.2 20.6 105.6 133.4 32.5 25.7 16.5 11.7 59.3 53.2 4.7 3.8

    Relaxo Footwears Buy 792 933 950 1,019 1,208 11.0 12.5 47.0 66.7 16.9 11.9 4.2 3.1 28.2 30.1 1.1 0.9

    Sintex Industries Buy 65 79 1,932 4,751 5,189 16.3 16.6 13.6 15.8 4.7 4.1 0.6 0.6 12.9 13.2 0.8 0.6

    Siyaram Silk Mills Buy 302 366 283 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 16 - 468 7,134 7,985 19.7 19.4 12.2 14.1 1.3 1.1 0.1 0.1 11.3 11.5 0.6 0.6

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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

    zOthers

    SpiceJet Reduce 49 43 2,388 5,720 6,599 5.3 6.8 3.6 5.4 13.7 9.2 19.8 6.3 - - 0.5 0.5

    TAJ GVK Buy 73 108 458 300 319 35.8 36.2 7.9 9.1 9.3 8.0 1.2 1.1 13.9 14.4 1.9 1.6

    Tata Sponge Iron Buy 309 384 476 750 803 18.6 18.4 65.4 69.1 4.7 4.5 0.7 0.6 16.5 15.3 0.3 0.2

    TVS Srichakra Buy 279 335 214 1,476 1,643 7.0 8.2 32.6 55.9 8.6 5.0 1.4 1.1 16.8 24.8 0.4 0.3

    United Spirits Neutral 1,916 - 25,054 10,289 11,421 12.8 12.8 26.0 45.3 73.7 42.3 3.3 3.1 5.8 7.6 2.9 2.6

    Vesuvius India Neutral 351 - 713 560 611 16.1 17.0 24.7 28.8 14.2 12.2 2.1 1.9 15.8 16.2 1.2 1.0

    Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on December 07, 2012

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