Market Outlook 15th May 2012

7/31/2019 Market Outlook 15th May 2012

1/17

Market OutlookMay 15, 2012

www.angelbroking.com

Dealers Diary

The domestic markets are expected to open in red tracking negative opening in

Asian markets. Most of the Asian markets ended lower yesterday as concerns over

political uncertainty in Europe partially offset the positive sentiment generated by a

weekend move by China's central bank to cut banks' reserve requirement ratio.

U.S markets closed at more than three-month lows yesterday as investors worried

about political uncertainty in Greece, as the debt-plagued nation could be forced

to hold a new round of elections due to lawmakers' inability to form a coalition

government. Also, Chinas move of cut in reserve ration requirements to inject

more liquidity into the system added to recent concerns about the outlook for

growth in China.

Meanwhile, Indian markets extended losses for a fifth consecutive session on

Monday after government data showed that the India's headline inflation

accelerated to 7.23% in April, making it difficult for the RBI to moderate monetary

policy. Markets would now watch out for retail sales growth data of the U.S. for

April 2012 (Bloomberg estimate 0.1%) to be released today.

Markets TodayThe trend deciding level for the day is 16,244 / 4,913 levels. If NIFTY trades above

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

up to 16,363 16,509 / 4,952 4,996 levels. However, if NIFTY trades below

16,244 / 4,913 levels for the first half-an-hour of trade then it may correct up to

16,097 15,978 / 4,869 4,830 levels.

Indices S2 S1 PIVOT R1 R2SENSEX 15,978 16,097 16,244 16,363 16,509NIFTY 4,830 4,869 4,913 4,952 4,996

News Analysis

Primary and fuel inflation rises as manufacturing inflation remains stable 4QFY2012 Result Reviews L&T, JSW Steel, Ashok Leyland, Abbott India,

Monnet Ispat & Energy, IVRCL, Orchid Chemicals, Madhucon Projects 4QFY2012 Result Previews JK Lakshmi Cement, Dishman PharmaRefer detailed news analysis on the following page

Net Inflows (May 11, 2012)

` cr Purch Sales Net MTD YTDFII 1,526 1,350 176 47 43,508

MFs - - - (474) (6,575)

FII Derivatives (May 14, 2012)

` cr Purch Sales Net Open InterestIndex Futures 597 924 (327) 11,285

Stock Futures 1,163 884 279 20,680

Gainers / Losers

Gainers LosersCompany Price (`) chg (%) Company Price (`) chg (%)Divis Lab 883 7.3 IVRCL Ltd 45 (11.8)

Lupin 539 4.4 Educomp Sol 156 (7.2)

Mphasis 402 4.1 Aurobindo Phar 103 (5.7)

IRB Infra 109 3.6 Adani Ports 114 (5.4)

Bombay Rayon 250 3.5 Sintex Inds 56 (5.3)

Domestic Indices Chg (%) (Pts) (Close)BSE Sensex (0.5) (77.1) 16,216

Nifty (0.4) (21.1) 4,908

MID CAP (1.0) (59.8) 5,889

SMALL CAP (1.3) (80.8) 6,315

BSE HC 0.8 51.5 6,626

BSE PSU (0.9) (61.1) 6,650

BANKEX (1.6) (174.0) 10,662

AUTO (0.7) (63.6) 9,715

METAL (0.6) (56.1) 10,051

OIL & GAS (1.7) (127.5) 7,420

BSE IT 0.4 22.6 5,505

Global Indices Chg (%) (Pts) (Close)Dow Jones (1.0) (125.3) 12,695NASDAQ (1.1) (31.2) 2,903

FTSE (2.0) (110.0) 5,466

Nikkei 0.2 20.5 8,974

Hang Seng (1.2) (229.6) 19,735

Straits Times (0.7) (18.8) 2,865

Shanghai Com (0.6) (14.3) 2,381

Indian ADRs Chg (%) (Pts) (Close)INFY (1.0) (0.4) $43.3

WIT (1.0) (0.1) $9.0IBN (4.1) (1.3) $29.5

HDB (2.6) (0.8) $30.4

Advances / Declines BSE NSEAdvances 1,010 433

Declines 1,712 994

Unchanged 110 76

Volumes (` cr)BSE 1,832

NSE 8,961


2/17



Primary and fuel inflation rises as manufacturing inflation

remains stable

Wholesale price-based inflation for the month of April, 2012 came in at 7.2% yoy,

slightly higher than 6.9% yoy levels registered in March, 2012. The inflation levels

of February, 2012 were revised upwards from 6.95% yoy to 7.39% yoy. The April,2012 inflation levels of 7.2% yoy were above the Bloomberg estimate of 6.7%.

Core (non-food manufacturing) inflation which the RBI tracks closely remained

stable at 4.56% yoy compared to 4.53% yoy in March, 2012.

Primary articles inflation remained at elevated levels of 9.7% yoy, c.10bp higher

than the 9.6% yoy witnessed in March, 2012. The food articles inflation which had

risen to 9.9% yoy in March 2012, jumped c60bp to 10.5% yoy for April 2012. The

mom annualized growth in food inflation index stood at 58.5% as against 27.5%

registered in February 2012 on account of higher prices of few fruits and

vegetables. The Non-food articles inflation, which was as high as 18.2% yoy in

August, 2011, came in at 1.6% yoy (-1.6% yoy in March, 2012). However, overMarch, 2012, the Non-food articles index rose by 3.3% mom (annualised growth

of 39.3%) on account of higher prices of raw silk, rape and mustard seed,

sesamum, soyabeen, and mesta and niger seed amongst others. Inflation for

minerals registered an uptick to 66.8% yoy compared to 28.6% yoy in February,

2012.

Fuel & power inflation (11.0% yoy) witnessed annualized mom growth of 21.4%

over March 2012. Coal Index (13.9% yoy) witnessed annualized mom growth of

161.9% over March 2012 (0.4% yoy), mainly on account of higher prices of non

coking coal. The electricity index remained unchanged mom. Mineral oil inflation

too moderated further to 13.7% yoy levels (lowest in 19 months). Although,

electricity tariff hikes across different states are yet to be accounted for in inflation

levels, we expect RBI to have already factored the same in its calculations and

hence do not expect any possible deviation in RBIs monetary policy decisions

based on possible uptick in electricity inflation index. The fuel hikes are also on

cards; however with global outlook remaining grim, any further rise in fuel

inflation levels is hence, in our view, expected to be capped.

Manufactured products which have a weightage of c.65% in the overall WPI

inflation inched upwards slightly to 5.1% yoy from 4.9% - the lowest levels in more

than 2 years observed in March, 2012. The annualized mom growth in

manufacturing index stood at 11.8% in April, 2012. The core inflation (4.56% yoy

for April 2012 compared to average of 7.3% yoy in FY2012) which the RBI tracks

closely for its monetary policy decisions showed stability remained stable at 4.56%

yoy compared to 4.53% yoy witnessed in March 2012, thus strengthening the

hopes of further monetary easing by the central bank.


3/17



Result Reviews

L&T (CMP:`1,160 / TP:`1,641 / Upside: 42%)

Larsen and Toubro (L&T) posted a good set of numbers for 4QFY2012, which

were broadly in-line with our expectations; however, the company disappointed on

the order inflow front. On the top-line front, L&T reported decent top-line growth

of 20.0% yoy to`18,461cr, marginally below our estimate of `18,945cr. On the

EBITDA front, performance was as per our expectations, with the company

reporting a yoy dip of 130bp to 13.9% against our expectation of 13.7%. On the

bottom-line front, L&T reported yoy growth of 13.9% to `1,920cr, marginally

higher than our estimate of`1,862cr, owing to exceptional gain (`55cr) and lower

tax rate (26.9%).

As of 4QFY2012, L&Ts order backlog stands at yoy growth of 11.0% to

`1,45,700cr. Order inflow for the quarter was disappointing at `21,159cr (yoy

decline of 30.0%) against our expectation of`26,000cr, taking the order inflow for

FY2012 to`70,574cr, implying a yoy decline of 12.0%.

For FY2013, management has given a guidance of 15-20% growth for both

revenue and order inflow. We believe that although the company can achieve this

guidance on the revenue front, given its robust order backlog, it would be difficult

to achieve 15-20% growth on the order inflow front, considering the challenging

macro environment.

We believe L&T is best placed to benefit from the gradual recovery in capex cycle,given its diverse exposure to sectors, strong balance sheet and cash flowgeneration as compared to peers. We maintain L&T as our top pick in the sectorand maintain our Buy rating on the stock with a target price of `1,641.Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 60,258 12.1 4,361 70.7 16.3 16.4 2.5 11.0 1.3

FY2014E 69,900 11.5 4,705 76.2 15.3 15.2 2.2 10.0 1.2

JSW Steel (CMP:`620/ TP: - / Upside: -)

JSW Steel reported better-than-expected standalone results for 4QFY2012 on

account of higher-than-expected sales volumes. The company's net sales grew by

35.3% yoy to `9,511cr (above our estimate of `8,406cr). Net sales growth wasdriven by increased steel volumes (+33.3% yoy to 2.3mn tonnes) and realization

(+6.0% yoy to`43,003/tonne). Although JSW Steels net sales grew by 35.3% yoy,

its EBITDA decreased by 0.1% yoy to `1,652cr and EBITDA margin slipped by

616bp yoy to 17.4% on account of higher raw-material prices. The company

reported exceptional item related to forex gain of `199cr during the quarter.

Interest expenses grew by 140.7% yoy to `368cr. Hence, adjusted net profit

decreased by 33.6% yoy to`553cr (higher than our estimate of`432cr). Reported

PAT declined by 9.7% yoy to `752cr. On a consolidated basis, the company

reported net sales of`10,153cr (+40.8% yoy), EBITDA of`1,887cr (+13.6% yoy)

and adjusted PAT of`480cr (-39.6% yoy). The company expects to produce 8.5mn

tonnes of steel during FY2013. We keep our rating and target price under review.


4/17



Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 39,161 17.8 1,736 72.1 10.1 8.6 0.8 3.7 0.7

FY2014E 43,958 17.9 2,162 89.5 11.4 6.9 0.7 3.4 0.6

Ashok Leyland (CMP:`26 / TP: Under Review / Upside: -)

Ashok Leyland (AL) reported in-line results for 4QFY2012. The companys net

sales registered healthy 12% yoy growth to`4,311cr, led by strong volume growth

of 20% yoy. Volume performance was boosted by the newly launched LCVDost,

which accounted for ~14% of total sales during the quarter. While volumes in the

MHCV goods segment declined by 3% yoy, MHCV passenger volumes jumped by

26% yoy. Net average realization, however, witnessed a decline of ~8% yoy,

largely on account of higher contribution from the lower priced Dost vehicle.

EBITDA margin declined by 230bp yoy to 10.9% on account of lower-margin

product Dost and due to a 47% yoy increase in other expenditure, which could bedue to increased advertising spends. As a result, operating profit declined by 7.5%

yoy to`470cr. Net profit declined by 13.2% yoy to `259cr, which was in-line with

our expectation. Higher interest (up 32% yoy) and depreciation expense (up 24%

yoy) also impacted the companys bottom-line performance. We maintain our Buy

rating on the stock; however, our target price is under review. We shall release a

detailed result note post the earnings conference call with the management.

Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 15,008 9.5 683 2.6 15.5 10.1 2.1 5.7 0.5

FY2014E 16,906 9.5 821 3.1 17.0 8.4 1.8 4.9 0.4

Abbott India (CMP:`1,505 / TP:`1,628 / Upside: 8.1%)

For 1QCY2012, Abbott India reported a muted set of numbers. The company's top

line was marginally lower by 2.7% qoq, from`386cr to`376cr. Numbers are not

comparable to 1QCY2011, as the companys results were merged with that of

Solvay Pharma in August 2011. The company's EBITDA margin contracted by

648bp qoq in 1QCY2012, mainly due to increased employee expenses and other

expenses. Depreciation for the quarter increased by 25% qoq, while tax rate stood

at 41.9%, thus leading to muted PAT. The company made provisions of`18.69cr

for change in its accounting for sales return and change its depreciation method to

straight line method from written-down methods, resulting in write back of

depreciation of`29.08cr. This led to net profit of`27.08cr, a 26.6% decline on a

qoq basis. We expect the company to post better revenue going forward on the

back of improved product portfolio and synergies to reduce costs going forward.

Also, change in depreciation method will add to the bottom line. We recommendAccumulate on the stock with a revised target price of `1,628, based on a targetPE of 18x for CY2013.Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 1,661 9.5 118 55.4 20.3 27.2 5.2 18.0 1.7

FY2014E 1,918 11.9 192 90.4 27.8 16.6 4.2 11.8 1.2


5/17



Monnet Ispat & Energy (CMP:`457/ TP: - / Upside: -)

Monnet Ispat reported a robust set of numbers for 4QFY2012. The company's net

sales grew by 20.7% yoy to`536cr mainly due to increased realizations. However,

raw-material cost as a percentage of sales increased to 59.8% in 4QFY2012

compared to 55.7% in 4QFY2011. Hence, EBITDA increased only by 10.4% yoy to`138cr, while EBITDA margin contracted by 34bp yoy to 25.7%. Interest expenses

increased by 28.8% yoy to`24cr, while other income increased by 20.0% yoy to

`12cr. Consequently, net profit grew by 13.6% yoy to`83cr.

The company plans a capex of `1,500cr for its upcoming power plants and

`800cr for steel capacity expansion during FY2013. The company reported that

the implementation of 1,050MW power plant at Angul is on track, and it is

expected to be operational in 2HFY2014.

We maintain our Buy recommendation on the stock; our target price is underreview.Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 2,986 22.1 339 50.5 13.5 9.1 1.1 8.5 1.9

FY2014E 3,908 28.9 559 83.4 19.2 7.0 0.9 4.4 1.3

IVRCL (CMP:`45 / TP: - / Upside: -)

IVRCL reported a disappointing set of numbers for 4QFY2012, with lower-than-

expected performance on all fronts. The companys revenue declined by 22.1%

yoy to`1,598cr, below our estimate of`1,682cr. On the operating margin front,

the company posted dismal margin of 6.4%, reporting a dip of 230bp yoy, below

our estimate of 8.0%. Interest cost came in at`66.1cr, which was flat on a yoy as

well as qoq basis. On the earnings front, IVRCL reported a 92.3% decline yoy to

`5cr, against our estimate of a 56.6% decline. This was on account of poor

performance on the revenue as well as margin front. Post the conference call, we

would come out with a detailed note. Currently, the target price and rating areunder review.Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 5,758 9.2 124.9 4.7 6.0 9.6 0.6 7.2 0.7

FY2014E 6,860 9.2 161.1 6.0 7.3 7.5 0.5 6.8 0.6

Orchid Chemicals (CMP:`161 / TP: Under review / Upside: -)

Orchid Chemicals reported sales and the net profit came in below expectations.

For the quarter, the company posted sales of`485cr, a dip of 8.1% yoy. On the

operating front, the operating profits also dipped by 8.0%, almost stagnant at last

year levels. For the full year the company has posted `1839cr, registering a

growth of 7.0% yoy, while the net profit came in at `17.5cr. The full year OPMs

came in at 17.5%. For FY2013, the company has guided towards a 10-15% yoy

growth on the topline. Currently the stock is under review.


6/17



Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 2,261 20.4 199 28.3 15.8 5.7 0.8 5.9 1.2

FY2014E 2,713 20.4 268 38.1 18.0 4.2 0.7 4.6 0.9

Madhucon Projects (CMP:`46 / TP: - / Upside: -)

For 4QFY2012, Madhucon Projects (MPL) reported a mixed set of numbers with

revenue coming below our expectations; however, higher EBITDAM and other

income resulted in better-than-expected earnings performance. On the top-line

front, MPL posted a disappointing performance, with a yoy/qoq decline of

27.1%/30.8% to`432cr, way below our expectation of`659cr. EBITDAM came in

at 11.8%, posting a jump of 120bp/340bp on a yoy/qoq basis against our

expectation of 9.2%. Interest cost stood at`27cr, registering a jump of 9.5% on a

yoy basis, but down by 9.8% on a sequential basis. On the earnings front, the

company posted a decline of 22.5% on a yoy basis at `15cr, in-line with ourexpectation of `14cr despite a higher tax rate (38.2%) on the back of higher

EBITDAM and other income (`14cr). We maintain our Buy view on the stockhowever the target price is under review.Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 2,503 10.7 43 5.8 10.0 7.9 0.5 6.4 0.7

FY2014E 2,903 10.7 48 6.5 10.1 7.0 0.5 6.0 0.6

Result Previews

JK Lakshmi Cement

JK Lakshmi Cement (JKLC) is set to declare its 4QFY2012 results. For the quarter,

we expect JKLC to post 5.9% yoy growth in its top line to `439cr, driven by volume

growth and higher realization. The companys OPM is expected to increase by

87bp yoy to 19.4%. The bottom line is expected to register growth of 36% yoy to

`43.4cr. We maintain our Buy view on the stock with a target price of `79.

DishmanFor the 4QFY2012, Dishman is expected to post top-line growth of 11.3% yoy to

`383cr.The company is expected to post EBITDA of 17.8%, up 170bps yoy. On the

net profit front, the company is expected to post net profit of`28.5cr, registering

24.0% yoygrowth. We maintain our buy with a target price of `92.


7/17



Quarterly Bloomberg Brokers Consensus Estimate

Cummins India Ltd - (15/05/2012)Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)Net sales 1,086 1,010 8 971 12

EBITDA 188 185 2 179 5EBITDA margin (%) 17.3 18.3 18.4

Net profit 145 144 0 141 2

Unitech Ltd - Consolidated (15/05/2012)Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)Net sales 611 1,054 (42) 514 19

EBITDA 135 168 (20) 107 26

EBITDA margin (%) 22.1 16.0 20.9

Net profit 86 103 (17) 55 55

Bajaj Auto Ltd - (17/05/2012)Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)Net sales 1,086 1,010 8 971 12

EBITDA 188 185 2 179 5

EBITDA margin (%) 17.3 18.3 18.4

Net profit 145 144 0 141 2

Coal India - Consolidated (18/05/2012)Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)Net sales 17,680 12,692 39 15,349 15

EBITDA 4,396 3,380 30 4,547 (3)

EBITDA margin (%) 24.9 26.6 29.6

Net profit 3,816 2,626 45 4,038 (5)

State Bank of India - Consolidated (18/05/2012)Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)Net profit 3,745 1,245 201 4,318 (13)

Tata Steel Ltd - Consolidated (18/05/2012)Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)Net sales 33,584 33,443 0 32,964 2

EBITDA 3,215 4,466 (28) 1,717 87

EBITDA margin (%) 9.6 13.4 5.2

Net profit 898 4,176 (78) (603) (249)


8/17



Economic and Political News Government notifies free sugar exports

Inflation rises to 7.23% in April, vegetable prices shoot up

Mumbai home prices fell 9.1 % between March 2011-12: Knight Frank

No plan to revamp Food Corporation India: Government

Oil slides on euro zone, China fears

Corporate News

Ashok Leyland Nissan inks`4,150cr MoU with Tamil Nadu government

Bhel bags`380cr order for gas-based plant in Rajasthan

Jain Irrigation announces buyout of 100% stake in JV firm

Moody's downgrades ICICI, HDFC, Axis banks, LIC

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


9/17

Date Company

May 15, 2012 Cummins India, Unitech, Patel Engg., Dishman Pharma, JK Tyre

May 16, 2012 Blue Star, J K Lakshmi Cements

May 17, 2012 Bajaj Auto, Mahindra Satyam

May 18, 2012 Coal India, St Bk of India, Tata Steel, HT Media, Siyaram Silk Mills

May 19, 2012 Reliance Capital, Force Motors

May 20, 2012 -

May 21, 2012 Adani Enterp., Nalco, Zee Entertainment, Tata Comm

May 22, 2012 Tata Power Co., Power Fin.Corpn., Godawari Ispat

May 23, 2012 Rural Elec.Corp., Tech Mahindra, Tata Global, LMW, Jyothy Laboratories

May 24, 2012 GSPL, TVS Motor, Madras Cements, Hitachi

May 25, 2012 NHPC, BPCL, Sun TV Network, Crompton Greaves

May 26, 2012 -

May 27, 2012 -

May 28, 2012 Motherson Sumi, Britannia, Amara Raja Batteries, Subros

May 29, 2012 Tata Motors, HPCL, GMR Infra., Aurobindo Pharma, Nagarjuna Const.

May 30, 2012 M&M, Colgate, Tata Chemicals, BGR Energy , PTC India

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

May 15, 2012 US Consumer price index (mom) % Change Mar-12 0.30 --

Euro Zone Euro-Zone GDP s.a. (QoQ) % Change Dec-11 (0.30) (0.20)

Germany GDP nsa (YoY) % Change Dec-11 1.50 0.90

May 16, 2012 Euro Zone Euro-Zone CPI (YoY) % Mar-12 2.70 2.60

US Industrial Production % Mar-12 -- 0.60

US Housing Starts Thousands Mar-12 654.00 685.00

US Building permits Thousands Mar-12 764.00 730.00

UK Jobless claims change % Change Mar-12 3.60 5.00

May 17, 2012 US Initial Jobless claims Thousands 05-May-12 367.00 365.00

May 22, 2012 Euro ZoneEuro-Zone ConsumerConfidence

Value Apr-12 (19.90) --

UK CPI (YoY) % Change Mar-12 3.50 --

US Existing home sales Millions Mar-12 4.48 4.60May 23, 2012 US New home sales Thousands Mar-12 328.00 335.00

May 24, 2012 Germany PMI Services Value Apr-12 52.20 --

Germany PMI Manufacturing Value Apr-12 46.20 --

UK GDP (YoY) % Change Mar-12 -- --

May 29, 2012 US Consumer ConfidenceS.A./

1985=100Apr-12 69.20 70.00

May 31, 2012 Germany Unemployment change (000's) Thousands Apr-12 19.00 --

US GDP Qoq (Annualised) % Change Mar-12 2.20 1.80

India Qtrly GDP YoY% % Change - 6.10 --

June 01, 2012 US Change in Nonfarm payrolls Thousands Apr-12 115.00 150.00

Source: Bloomberg, Angel Research


May 15, 2012

Market Outlook


10/17

Market Strategy

May 15, 2012


Macro watch

Exhibit1:QuarterlyGDPtrends

5.8 5.9

7.5

9.8

7.4

9.4

8.5

7.6

8.3

7.8 7.7

6.9

6.1

5.0

6.0

7.0

8.0

9.0

10.0

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

(%)

Source:

CSO,

Angel

Research

Exhibit2:IIPtrends

5.36.2

9.5

3.7 3.42.5

(5.0)

6.0

2.7

1.1

4.1

(3.5)(6.0)

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

12.0

Apr-

11

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

(%)

Source:

MOSPI,

Angel

Research

Exhibit3:MonthlyWPIinflationtrends

9.6 9.5 9.4 9.810.0 9.9 9.5

7.76.9

7.46.9 7.2

0.0

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,AngelResearch

Exhibit4:ManufacturingandservicesPMI

48.0

50.0

52.0

54.0

56.0

58.0

60.0

Apr-

11

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

Mfg. PMI Services PMI

Source:Market,AngelResearch;Note:Levelabove50indicatesexpansion

Exhibit5:Exportsandimportsgrowthtrends

(15)

0

15

30

45

60

75

90

Apr-

11

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

Exports yoy growth Imports yoy growth(%)

Source:Bloomberg,AngelResearch

Exhibit6:Keypolicyrates8.00

7.00

4.75

4.00

5.00

6.00

7.00

8.00

9.00

Apr-

11

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

Repo rate Reverse Repo rate CRR (%)

Source:RBI,AngelResearch


11/17

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 121 - 2,350 1,432 1,647 14.7 14.7 7.0 8.0 17.3 15.1 3.6 3.1 22.8 22.3 1.7 1.4

United Phosphorus Buy 118 183 5,448 8,191 8,764 16.5 16.5 17.1 18.3 6.9 6.5 1.1 1.0 17.5 16.2 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Buy 293 345 2,505 2,691 3,032 15.6 15.5 29.4 32.8 10.0 8.9 2.4 1.9 26.5 23.6 0.9 0.7

Apollo Tyres Buy 82 100 4,141 13,699 15,184 10.5 10.2 12.1 13.3 6.8 6.2 1.2 1.1 19.7 18.4 0.5 0.4

Ashok Leyland Buy 26 37 6,931 15,008 16,906 9.5 9.5 2.6 3.1 10.1 8.4 2.1 1.8 15.5 17.0 0.5 0.5

Automotive Axle Neutral 486 - 735 1,211 1,387 12.1 11.7 50.3 57.1 9.7 8.5 2.4 2.0 27.8 25.7 0.7 0.5Bajaj Auto Accumulate 1,583 1,811 45,811 21,966 24,774 19.8 19.0 111.7 120.7 14.2 13.1 5.5 4.4 43.1 37.1 1.7 1.4

Bharat Forge Accumulate 324 372 7,531 7,173 7,998 16.3 16.5 22.3 26.6 14.5 12.2 2.8 2.4 21.0 21.0 1.1 1.0

Bosch India Accumulate 8,963 9,429 28,143 9,390 10,716 19.5 19.1 420.2 471.4 21.3 19.0 5.0 4.2 23.3 21.8 2.7 2.3

CEAT Buy 95 164 324 5,067 5,631 8.0 7.6 39.4 41.0 2.4 2.3 0.4 0.4 18.8 16.5 0.3 0.3

Exide Industries Buy 120 146 10,192 5,787 6,595 15.5 17.0 7.1 9.0 16.9 13.4 3.0 2.5 18.6 20.3 1.4 1.2

FAG Bearings Neutral 1,525 - 2,534 1,531 1,748 18.8 18.5 118.0 132.8 12.9 11.5 2.8 2.3 24.0 21.9 1.4 1.1

Hero Motocorp Buy 1,844 2,280 36,821 26,106 29,296 15.0 15.2 140.3 148.1 13.1 12.5 6.2 4.8 54.8 43.3 1.1 0.9

JK Tyre Buy 79 113 325 8,058 9,025 5.4 5.5 24.8 32.2 3.2 2.5 0.4 0.3 11.4 13.2 0.3 0.3

Mahindra and Mahindra Buy 658 802 40,415 35,095 40,213 10.7 10.5 44.6 48.7 14.8 13.5 2.6 2.3 18.8 18.1 0.8 0.7

Maruti Buy 1,247 1,510 36,024 42,683 48,736 7.1 7.5 86.6 100.6 14.4 12.4 2.1 1.8 15.3 15.5 0.6 0.5

Motherson Sumi Buy 171 216 6,628 11,167 12,516 9.5 10.0 11.3 14.4 15.1 11.9 3.3 2.7 23.3 24.7 0.7 0.6

Subros Neutral 29 - 176 1,225 1,393 8.5 8.2 4.2 5.0 7.0 5.9 0.7 0.7 10.3 11.8 0.4 0.3

Tata Motors Accumulate 290 328 78,109 191,183 213,150 12.6 12.6 38.7 42.9 7.5 6.8 2.6 2.1 39.8 33.9 0.5 0.5

TVS Motor Buy 34 55 1,634 7,982 8,816 6.4 6.3 5.0 5.6 6.9 6.2 1.2 1.1 18.9 18.2 0.2 0.2

Capital Goods

ABB* Sell 708 498 15,013 8,760 10,023 6.4 6.4 18.2 20.7 38.9 34.2 5.2 4.7 14.4 14.6 1.7 1.5BGR Energy Neutral 285 - 2,058 4,170 5,396 11.5 10.4 27.2 30.4 10.5 9.4 1.7 1.6 17.3 17.4 1.1 1.0

BHEL Neutral 217 - 53,052 46,344 46,916 18.3 18.6 23.5 24.1 9.2 9.0 1.8 1.6 21.3 18.9 1.0 1.0

Blue Star Buy 184 221 1,656 3,250 3,551 5.9 5.9 12.4 15.8 14.8 11.7 3.0 2.6 21.2 23.8 0.6 0.5

Crompton Greaves Buy 113 164 7,249 12,936 14,101 9.6 10.0 10.9 11.7 10.4 9.6 1.8 1.6 18.4 17.3 0.6 0.5

Jyoti Structures Buy 39 67 318 2,622 2,801 10.6 11.0 10.9 13.4 3.6 2.9 0.4 0.4 12.7 13.9 0.3 0.3

KEC International Buy 52 73 1,328 6,686 7,200 7.7 7.9 10.6 12.2 4.9 4.2 0.9 0.8 25.9 24.0 0.3 0.3

LMW Buy 1,534 2,609 1,728 2,663 3,130 12.8 12.8 185.0 217.4 8.3 7.1 1.6 1.4 21.2 21.7 0.2 0.1

Thermax Neutral 427 - 5,082 5,514 5,559 8.3 8.0 29.7 28.4 14.4 15.0 2.7 2.4 20.2 16.9 0.8 0.8


May 15, 2012

Market Outlook

Stock Watch


12/17



Cement

ACC Neutral 1,172 - 22,005 11,018 12,663 19.9 21.2 70.7 81.2 16.6 14.4 2.9 2.6 18.0 19.0 1.7 1.4

Ambuja Cements Neutral 146 - 22,344 10,035 11,504 23.5 23.8 10.1 10.6 14.4 13.8 2.8 2.5 18.5 19.4 1.8 1.5

India Cements Neutral 78 - 2,404 4,423 4,906 18.2 18.8 9.9 12.7 7.9 6.2 0.7 0.6 8.6 10.5 0.8 0.7

J K Lakshmi Cements Buy 60 79 729 1,880 2,201 19.0 22.6 12.2 16.4 4.9 3.6 0.6 0.5 11.9 14.3 0.6 0.9

Madras Cements Neutral 145 - 3,451 3,434 3,777 25.5 26.1 14.1 18.1 10.3 8.0 1.5 1.3 15.2 16.9 1.6 1.4

Shree Cements Neutral 2,662 - 9,275 5,552 6,193 25.7 26.0 130.3 182.0 20.4 14.6 4.2 3.6 19.1 22.3 1.4 1.0

UltraTech Cement Neutral 1,372 - 37,590 20,116 22,655 21.3 22.5 82.1 97.5 16.7 14.1 2.6 2.3 16.8 17.4 1.8 1.7Construction

Ashoka Buildcon Buy 194 302 1,023 2,014 2,294 22.4 22.4 28.4 30.8 6.9 6.3 0.9 0.8 14.1 13.3 2.3 2.6

Consolidated Co Neutral 15 - 274 2,526 2,792 5.7 6.6 1.8 2.8 8.1 5.2 0.4 0.4 5.6 8.2 0.3 0.3

Hind. Const. Neutral 18 - 1,098 4,239 4,522 11.1 11.8 (1.8) (0.8) (10.1) (23.2) 1.0 1.2 (9.5) (4.7) 1.3 1.2

IRB Infra Buy 109 166 3,621 3,821 4,582 42.3 40.2 15.0 16.9 7.3 6.4 1.1 1.0 16.1 15.8 2.6 2.4

ITNL Buy 159 265 3,083 6,619 7,925 23.8 23.3 22.0 26.7 7.2 6.0 1.0 0.9 14.9 15.9 2.2 2.1

IVRCL Infra Buy 45 79 1,204 5,758 6,860 9.2 9.2 4.7 6.0 9.6 7.5 0.6 0.5 6.0 7.3 0.7 0.6

Jaiprakash Asso. Buy 61 104 13,046 16,017 18,359 24.4 23.5 4.2 5.0 14.6 12.2 1.2 1.1 8.8 9.7 2.1 1.9

Larsen & Toubro Buy 1,160 1,641 71,026 60,258 69,900 12.1 11.5 70.7 76.3 16.4 15.2 2.5 2.2 16.1 15.2 1.3 1.1

Madhucon Proj Buy 46 84 339 2,503 2,903 10.7 10.7 5.8 6.6 7.9 7.0 0.5 0.5 6.6 7.0 0.7 0.6

Nagarjuna Const. Buy 34 76 874 5,790 7,022 9.2 9.5 3.5 5.4 9.8 6.3 0.4 0.4 3.7 5.6 0.8 0.8

Patel Engg. Neutral 88 - 612 3,609 3,836 13.1 13.1 14.0 14.6 6.3 6.0 0.4 0.4 6.3 6.1 1.0 1.1

Punj Lloyd Neutral 44 - 1,465 10,592 12,193 8.4 8.4 2.9 4.6 15.2 9.7 0.5 0.4 3.9 3.1 0.6 0.6

Sadbhav Engg. Buy 135 199 2,035 2,989 3,315 10.6 10.6 10.2 11.3 13.3 12.0 2.1 1.8 17.6 16.3 0.9 0.8

Simplex Infra Buy 207 316 1,023 6,732 7,902 9.3 9.6 27.2 35.1 7.6 5.9 0.8 0.7 11.0 12.6 0.5 0.4

FinancialsAllahabad Bank Accumulate 147 166 7,358 7,392 8,542 3.1 3.1 38.3 42.1 3.8 3.5 0.7 0.6 18.4 17.6 - -

Andhra Bank Neutral 104 - 5,825 5,151 5,843 3.2 3.1 22.4 25.7 4.6 4.1 0.7 0.6 15.8 16.0 - -

Axis Bank Buy 994 1,587 41,150 16,157 19,557 3.2 3.2 116.4 139.1 8.6 7.2 1.6 1.4 20.0 20.3 - -

Bank of Baroda Buy 625 925 24,470 15,993 18,918 2.6 2.6 127.3 149.9 4.9 4.2 0.8 0.7 17.8 18.2 - -

Bank of India Buy 316 411 18,106 13,558 15,551 2.5 2.4 61.6 70.8 5.1 4.5 0.9 0.7 16.8 16.9 - -

Bank of Maharashtra Buy 47 55 2,783 3,580 4,050 3.2 3.2 11.5 13.1 4.1 3.6 0.7 0.6 17.4 17.2 - -

Canara Bank Buy 409 522 18,116 12,061 13,906 2.3 2.3 83.1 92.7 4.9 4.4 0.8 0.7 16.7 16.4 - -

Central Bank Neutral 76 - 5,569 6,838 7,912 2.3 2.4 13.8 20.3 5.5 3.7 0.8 0.7 10.9 14.4 - -


May 15, 2012

Market Outlook

Stock Watch


13/17



Financials

Corporation Bank Buy 406 486 6,013 5,203 5,880 2.2 2.1 107.5 112.7 3.8 3.6 0.7 0.6 17.9 16.5 - -

Dena Bank Buy 82 111 2,855 3,149 3,522 2.8 2.8 23.3 26.1 3.5 3.1 0.6 0.5 17.7 17.0 - -

Federal Bank Neutral 413 - 7,063 2,743 3,131 3.4 3.3 49.7 57.4 8.3 7.2 1.1 1.0 14.1 14.6 - -

HDFC Neutral 644 - 95,098 7,393 8,844 3.5 3.4 31.7 37.9 20.3 17.0 4.1 3.6 34.7 31.9 - -

HDFC Bank Accumulate 501 567 117,526 21,831 27,477 4.3 4.3 28.3 35.5 17.7 14.1 3.4 2.9 20.8 22.1 - -

ICICI Bank Buy 799 1,201 91,838 22,209 26,512 2.8 2.8 67.9 81.1 11.8 9.9 1.4 1.3 14.7 16.0 - -

IDBI Bank Buy 89 117 11,429 8,004 9,589 1.9 2.0 19.9 23.9 4.5 3.7 0.6 0.5 13.8 14.9 - -Indian Bank Accumulate 177 197 7,626 6,312 7,119 3.4 3.3 41.1 43.7 4.3 4.1 0.7 0.7 18.2 16.9 - -

IOB Buy 79 96 6,324 7,354 8,283 2.5 2.4 16.3 21.7 4.9 3.7 0.6 0.5 11.5 13.9 - -

J & K Bank Accumulate 861 960 4,175 2,420 2,792 3.5 3.6 178.0 195.8 4.8 4.4 0.9 0.8 19.5 18.6 - -

LIC Housing Finance Buy 236 286 11,897 2,108 2,607 2.6 2.6 24.5 30.6 9.6 7.7 1.8 1.5 20.1 21.4 - -

Oriental Bank Buy 217 274 6,340 6,431 7,315 2.7 2.6 54.4 63.8 4.0 3.4 0.6 0.5 13.6 14.3 - -

Punjab Natl.Bank Buy 724 1,066 22,931 19,893 23,653 3.1 3.2 153.4 175.2 4.7 4.1 0.9 0.7 18.3 18.1 - -

South Ind.Bank Neutral 22 - 2,472 1,399 1,596 2.6 2.5 3.5 3.8 6.2 5.8 1.1 1.0 18.7 17.5 - -

St Bk of India Buy 1,840 2,511 123,486 69,568 81,445 3.7 3.7 220.9 269.8 8.3 6.8 1.4 1.1 18.9 19.1 - -

Syndicate Bank Buy 90 131 5,415 7,133 8,255 3.0 3.0 25.9 30.0 3.5 3.0 0.6 0.5 16.9 17.1 - -

UCO Bank Neutral 66 - 4,138 5,623 6,380 2.4 2.4 16.9 17.9 3.9 3.7 0.7 0.7 16.5 15.4 - -

Union Bank Buy 201 276 10,536 10,215 11,854 2.9 2.8 42.7 50.3 4.7 4.0 0.8 0.7 17.0 17.5 - -

United Bank Buy 57 78 2,058 3,551 4,128 2.7 2.8 18.8 22.6 3.0 2.5 0.5 0.4 15.5 16.5 - -

Vijaya Bank Neutral 52 - 2,458 2,668 3,001 2.2 2.2 10.6 12.2 4.9 4.3 0.7 0.6 13.3 13.8 - -

Yes Bank Buy 318 470 11,251 3,209 4,144 2.7 2.8 33.9 41.5 9.4 7.7 2.0 1.6 23.1 23.3 - -

FMCG

Asian Paints Neutral 3,701 - 35,497 11,423 13,309 16.3 16.3 125.3 148.4 29.5 24.9 10.0 7.9 38.0 35.4 3.0 2.6Britannia Buy 536 650 6,407 5,906 6,856 6.9 7.0 22.3 28.3 24.0 19.0 9.8 7.3 45.2 44.1 1.1 0.9

Colgate Neutral 1,215 - 16,527 3,007 3,417 21.1 22.1 37.7 42.6 32.2 28.6 38.4 31.0 129.4 120.1 5.4 4.7

Dabur India Neutral 108 - 18,823 5,878 6,799 16.8 17.0 4.2 4.9 26.1 22.0 9.4 7.7 39.3 42.0 3.2 2.8

GlaxoSmith Con* Neutral 2,784 - 11,708 3,124 3,663 17.1 11.6 103.0 123.3 27.0 22.6 8.3 6.7 34.0 32.9 3.4 2.9

Godrej Consumer Neutral 514 - 17,483 5,973 7,000 18.4 18.6 22.8 27.2 22.5 18.9 6.2 5.0 31.3 38.4 3.1 2.6

HUL Neutral 433 - 93,485 25,350 29,309 14.3 14.4 14.1 16.4 30.6 26.4 22.9 17.9 82.7 76.2 3.5 3.0

ITC Accumulate 234 252 182,834 28,955 33,595 35.9 35.7 9.2 10.5 25.5 22.3 8.2 6.7 34.8 33.1 6.0 5.2


May 15, 2012

Market Outlook

Stock Watch


14/17



FMCG

Marico Neutral 174 - 10,712 4,667 5,427 12.8 12.9 6.6 8.1 26.2 21.4 7.0 5.5 30.0 28.8 2.3 1.9

Nestle* Neutral 4,627 - 44,616 8,731 10,539 21.0 21.4 119.3 147.9 38.8 31.3 23.8 16.2 73.0 61.6 5.1 4.2

Tata Global Buy 103 136 6,373 7,011 7,712 9.7 10.0 6.0 7.1 17.3 14.4 1.6 1.5 8.9 10.2 0.8 0.7

IT

HCL Tech Buy 487 560 33,711 22,792 25,743 17.4 17.4 37.8 43.0 12.9 11.3 2.8 2.4 22.3 21.3 1.4 1.2

Hexaware Neutral 118 - 3,491 1,821 2,105 19.0 18.6 9.8 10.7 12.0 11.0 2.8 2.4 23.7 22.5 1.6 1.4

Infosys Buy 2,338 2,792 134,255 37,615 42,491 31.1 30.6 158.5 174.5 14.8 13.4 3.3 2.8 22.5 20.8 2.9 2.4Infotech Enterprises Accumulate 162 177 1,805 1,758 1,972 17.0 16.6 16.8 18.6 9.6 8.7 1.3 1.2 13.6 13.2 0.7 0.5

KPIT Cummins Reduce 109 98 1,945 2,042 2,139 15.2 14.9 9.6 10.9 11.4 10.1 2.0 1.7 19.2 18.0 0.9 0.8

Mahindra Satyam Buy 69 89 8,108 7,142 8,042 15.4 15.0 7.7 8.3 9.0 8.3 1.2 1.1 13.8 13.0 0.7 0.6

Mindtree Neutral 603 - 2,444 2,172 2,450 16.1 15.5 53.9 58.5 11.2 10.3 2.1 1.7 18.9 17.0 0.9 0.8

Mphasis Accumulate 402 433 8,441 5,904 6,320 18.3 17.9 38.7 41.2 10.4 9.8 1.6 1.3 14.9 13.7 1.0 0.8

NIIT Buy 41 61 674 1,105 1,200 16.4 16.9 7.5 9.2 5.4 4.5 1.0 0.9 17.6 19.0 0.4 0.2

Persistent Neutral 354 - 1,416 1,109 1,224 23.3 22.4 37.2 40.1 9.5 8.8 1.5 1.3 15.4 14.5 0.9 0.8

TCS Neutral 1,228 - 240,268 57,189 66,329 29.3 28.7 63.2 70.9 19.4 17.3 5.9 4.8 30.5 27.7 4.0 3.3

Tech Mahindra Buy 628 750 8,002 6,030 6,511 16.3 15.7 81.1 87.0 7.7 7.2 1.6 1.3 20.1 18.0 1.3 1.1

Wipro Accumulate 403 430 98,965 41,918 46,879 19.4 19.9 25.1 28.7 16.1 14.1 3.0 2.6 18.6 18.3 2.0 1.7

Media

D B Corp Buy 198 274 3,638 1,656 1,869 26.0 26.8 14.0 16.1 14.2 12.3 3.3 2.7 24.8 24.1 2.1 1.8

HT Media Buy 113 170 2,662 2,255 2,555 17.8 18.3 10.0 12.0 11.4 9.4 1.6 1.4 14.7 15.4 0.9 0.8

Jagran Prakashan Buy 90 137 2,859 1,499 1,642 27.4 28.8 7.6 9.1 11.8 10.0 4.0 3.6 34.6 37.7 1.9 1.7

PVR Neutral 151 - 391 625 732 17.4 16.9 12.4 15.8 12.1 9.6 1.9 2.1 8.5 9.9 0.8 0.7

Sun TV Network Neutral 288 - 11,365 2,135 2,458 75.2 74.4 20.9 24.0 13.8 12.0 3.2 2.7 26.0 25.1 4.3 3.5Metals & Mining

Bhushan Steel Neutral 438 - 9,295 9,232 13,557 30.8 31.1 48.0 58.6 9.1 7.5 1.2 1.0 14.5 7.5 3.1 2.2

Coal India Accumulate 316 351 199,281 65,654 71,756 26.8 27.3 24.0 26.3 13.1 12.0 3.6 3.0 30.4 27.0 2.1 1.7

Electrosteel Castings Buy 19 27 650 1,984 2,074 10.6 12.0 2.7 3.3 7.0 5.7 0.3 0.1 5.2 6.2 0.4 0.4

Hind. Zinc Accumulate 120 139 50,894 13,043 14,223 51.8 52.8 14.8 16.6 8.1 7.3 1.6 1.3 21.2 19.9 2.2 1.6

Hindalco Neutral 112 - 21,414 84,652 88,766 9.6 10.5 17.0 18.9 6.6 5.9 0.6 0.6 9.7 9.8 0.5 0.5

JSW Steel Accumulate 620 693 13,823 39,161 43,958 17.8 17.9 72.2 89.5 8.6 6.9 0.8 0.7 10.1 11.4 0.6 0.5

MOIL Neutral 254 - 4,263 979 1,061 45.7 46.8 24.5 26.6 10.4 9.5 1.6 1.4 16.1 15.8 2.2 1.9

Monnet Ispat Buy 457 585 2,942 2,986 3,908 22.1 28.9 50.5 83.4 9.1 5.5 1.1 0.9 13.5 19.2 1.9 1.3


May 15, 2012

Market Outlook

Stock Watch


15/17



Metals & Mining

Nalco Reduce 57 51 14,677 8,276 8,578 12.7 16.4 2.5 3.5 22.5 16.3 1.2 1.2 5.6 7.5 1.3 1.3

NMDC Accumulate 166 185 65,616 11,726 12,890 77.8 78.4 18.6 20.6 8.9 8.0 2.1 1.8 26.1 23.8 3.4 2.9

SAIL Buy 87 102 35,853 52,461 62,935 18.0 18.8 13.2 14.5 6.6 6.0 0.8 0.7 12.4 12.3 1.1 0.9

Sesa Goa Accumulate 181 206 15,748 9,067 9,316 35.7 35.5 44.5 44.3 4.1 4.1 0.9 0.7 23.5 19.5 0.3 -

Sterlite Inds Buy 95 123 31,859 45,805 49,029 21.2 23.5 16.5 19.1 5.7 5.0 0.6 0.6 11.5 12.0 0.3 0.2

Tata Steel Buy 408 503 39,630 141,358 142,265 11.1 13.7 45.8 58.9 8.9 6.9 0.9 0.8 10.0 11.7 0.6 0.6

Oil & GasCairn India Buy 304 372 57,956 15,513 16,074 74.0 69.7 51.1 48.6 6.0 6.3 1.0 0.9 18.3 14.8 2.6 1.9

GAIL Buy 319 392 40,420 50,472 55,503 15.3 15.6 35.4 37.0 9.0 8.6 1.6 1.4 18.7 17.0 0.5 0.4

ONGC Buy 251 319 215,042 148,157 150,563 37.6 39.5 31.0 33.6 8.1 7.5 1.4 1.3 18.8 18.1 1.1 0.9

Reliance Industries Buy 681 872 223,046 325,734 328,669 10.9 11.7 65.8 70.1 10.4 9.7 1.1 1.0 11.9 11.5 0.7 0.6

Pharmaceuticals

Alembic Pharma Buy 51 91 959 1,624 1,855 14.2 15.6 6.6 9.1 7.7 5.6 1.9 1.5 27.5 29.2 0.8 0.7

Aurobindo Pharma Buy 103 175 2,999 5,243 5,767 14.6 14.6 13.8 14.7 7.5 7.0 0.9 0.4 11.4 10.9 0.9 0.8

Aventis* Neutral 2,125 - 4,894 1,482 1,682 15.5 15.5 95.0 104.0 22.4 20.4 4.0 3.1 18.6 17.0 3.1 2.6

Cadila Healthcare Buy 766 953 15,684 6,196 7,443 18.5 19.5 43.3 50.8 17.7 15.1 4.6 3.7 25.4 24.8 2.5 2.0

Cipla Buy 320 379 25,693 7,687 8,804 21.4 21.4 16.5 18.9 19.4 16.9 3.0 2.6 16.7 16.8 3.3 2.8

Dr Reddy's Neutral 1,671 - 28,326 10,696 11,662 20.7 21.0 83.7 92.9 20.0 18.0 4.1 3.5 22.4 21.0 2.8 2.5

Dishman Pharma Buy 43 91 343 1,282 1,538 17.9 17.9 10.1 13.0 4.2 3.3 0.3 0.3 8.5 10.1 1.0 0.9

GSK Pharma* Neutral 2,050 - 17,365 2,651 2,993 31.7 31.2 76.0 82.4 27.0 24.9 7.8 6.8 30.8 29.0 5.6 4.8

Indoco Remedies Buy 463 665 569 685 837 15.2 15.2 55.5 66.5 8.4 7.0 1.3 1.1 16.4 16.9 1.0 0.9

Ipca labs Buy 358 443 4,503 2,907 3,541 21.5 21.5 32.4 40.6 11.1 8.8 2.8 2.2 27.8 27.7 1.7 1.4

Lupin Buy 539 646 24,081 8,426 10,082 19.7 20.0 29.7 32.4 18.2 16.6 4.7 3.8 27.0 25.2 2.8 2.2Orchid Chemicals Buy 139 270 981 2,143 2,508 21.8 21.8 28.3 38.1 4.9 3.7 1.0 0.8 19.3 23.4 1.4 1.1

Ranbaxy* Neutral 487 - 20,565 12,046 11,980 18.0 15.8 35.7 29.8 13.7 16.4 5.1 4.2 43.1 28.1 1.7 1.7

Sun Pharma Accumulate 577 634 59,410 9,272 11,080 40.3 36.3 26.7 28.8 21.6 20.0 4.4 3.7 22.1 20.8 5.6 4.6

Power

CESC Buy 260 342 3,243 5,084 5,512 24.2 23.8 45.2 48.5 5.7 5.4 0.6 0.6 11.2 10.9 1.1 1.1

GIPCL Buy 61 98 929 1,557 1,573 28.7 27.5 10.4 10.2 5.9 6.0 0.6 0.6 10.5 9.6 1.1 0.9

NTPC Buy 148 201 121,909 73,558 84,843 23.4 23.6 12.6 14.1 11.7 10.5 1.5 1.4 13.3 13.6 2.4 2.2

Real Estate

Anant Raj Buy 53 78 1,555 657 875 52.0 56.1 8.4 12.7 6.3 4.1 0.4 0.4 6.3 8.9 3.6 2.7

DLF Neutral 182 - 30,970 9,878 12,033 44.7 46.1 9.6 13.4 19.0 13.6 1.2 1.2 6.4 8.7 5.6 4.6


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Real Estate

HDIL Buy 62 115 2,600 2,441 3,344 53.0 46.7 21.4 25.4 2.9 2.5 0.2 0.2 8.4 9.1 2.9 2.2

Telecom

Bharti Airtel Neutral 307 - 116,755 80,967 88,684 33.1 33.4 17.9 22.0 17.2 14.0 2.0 1.7 11.5 12.5 2.1 1.8

Idea Cellular Neutral 81 - 26,855 22,558 25,326 26.4 27.5 3.2 4.7 25.2 17.1 1.9 1.7 7.5 10.0 1.7 1.4

Rcom Neutral 66 - 13,633 21,899 23,740 32.7 32.7 4.2 6.7 15.6 9.9 0.3 0.3 2.1 3.2 2.0 1.7

zOthers

Bajaj Electrical Buy 207 245 2,060 3,670 4,384 8.5 8.5 18.3 22.3 11.3 9.3 2.5 2.1 23.9 24.3 0.6 0.5CRISIL Neutral 1,059 - 7,431 982 1,136 34.3 34.3 34.3 40.0 30.8 26.5 14.0 11.2 50.9 46.9 7.1 6.0

Finolex Cables Buy 36 60 551 2,341 2,656 8.5 8.8 8.0 10.0 4.5 3.6 0.6 0.6 18.1 20.2 0.2 0.1

Graphite India Buy 91 116 1,778 2,053 2,437 22.6 22.4 13.5 16.3 6.7 5.6 1.0 0.9 15.4 16.5 1.0 0.8

Greenply Buy 210 298 507 1,800 2,047 11.1 11.6 34.1 49.6 6.2 4.2 1.1 0.9 20.2 23.7 0.5 0.4

Page Industries Neutral 2,934 - 3,272 935 1,168 19.6 19.6 99.7 122.2 29.4 24.0 17.0 13.6 64.2 63.1 3.6 2.8

Sintex Buy 56 129 1,516 5,219 5,912 16.5 16.9 15.8 21.4 3.5 2.6 0.5 0.4 14.7 17.1 0.5 0.4

Siyaram Silk Mills Buy 251 439 235 1,045 1,173 12.3 12.4 61.5 73.2 4.1 3.4 0.8 0.7 20.2 20.4 0.5 0.4

SpiceJet Neutral 27 - 1,201 5,384 6,443 (1.0) 4.1 (3.4) 2.4 (8.0) 11.4 (11.0) 23.2 - - 0.4 0.4

Taj GVK Buy 57 116 360 322 355 36.3 35.8 8.3 9.6 6.9 6.0 1.0 0.8 14.5 14.9 1.5 1.2

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on May 14, 2012


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May 15, 2012Market Outlook

Documents

Market Outlook 15th May 2012