Market Outlook 220512

7/31/2019 Market Outlook 220512

1/13

Market Outlook May 22, 2012

www.angelbroking.com

Dealers Diary

The domestic markets are expected to open in green tracking positive cues fromglobal markets. Germanys finance minister said the nation will focus on measuresto boost Europes economic growth, while hopes for an economic stimulus plan for

China brightened sentiment as the country pledged its proactive fiscal policy andprudent monetary policy yesterday to shore up the worlds second-largesteconomy.

US markets rebounded as traders picked up stocks at reduced levels following therecent downward trend, which pulled the major averages down to four-monthclosing lows on Friday. However, trading activity was somewhat subdued, aslingering concerns about Europe and a lack of major US economic data kept sometraders on the sidelines. Trading today could be impacted by the release of theNational Association of Realtor's monthly report on existing home sales.

Indian shares erased most of their early gains on Monday, as a weakening rupee,

which was moving towards its record low of 55.04 against the dollar, and theslashing of India's 2012 economic growth forecast to 6.3% from the earlier 6.9%by Morgan Stanley gave way to some late-session profit taking.

Markets Today The trend deciding level for the day is 16,210 / 4,911 levels. If NIFTY trades abovethis level during the first half-an-hour of trade then we may witness a further rally up to 16,271 16,359 / 4,933 4,960 levels. However, if NIFTY trades below16,210 / 4,911 levels for the first half-an-hour of trade then it may correct up to16,122 16,062 / 4,884 4,862 levels.

SENSEX 16,062 16,122 16,210 16,271 16,359

NIFTY 4,862 4,884 4,911 4,933 4,960

News Analysis L&T bags orders worth ` 7,44cr 4QFY2012 Result Reviews Nalco

Refer detailed news analysis on the following page

Net Inflows (May 18, 2012)

FII 1,660 1,866 (206) (331) 43,130

MFs 484 407 77 (65) (6,166)

FII Derivatives (May 21, 2012)

Index Futures 1,048 1,595 (547) 12,101

Stock Futures 1,384 1,304 79 21,998

Gainers / Losers

Reliance Cap 314 7.9 NMDC 169 (4.1)

Suzlon Energy 21 6.5 Sun TV Network 258 (3.1)Godrej Inds 246 4.6 Max India 189 (2.9)

Tata Power 96 4.5 Tata Comm 203 (2.9)

Indraprastha Gas 214 4.0 India Cements 75 (2.7)

BSE Sensex 0.2 30.5 16,183

Nifty 0.3 14.6 4,906

MID CAP 0.4 23.9 5,889SMALL CAP 1.0 62.0 6,317

BSE HC 0.3 18.8 6,636

BSE PSU 0.6 42.5 6,684

BANKEX 1.1 116.2 10,843

AUTO 0.5 44.8 9,276

METAL 0.4 40.6 10,119

OIL & GAS 0.5 38.8 7,504

BSE IT (1.2) (65.7) 5,446

Dow Jones 1.1 135.1 12,504NASDAQ 2.5 68.4 2,847

FTSE 0.7 36.9 5,304

Nikkei 0.3 22.6 8,634

Hang Seng (0.2) (29.5) 18,922

Straits Times 0.4 11.1 2,790

Shanghai Com 0.2 3.8 2,348

INFY 0.2 0.1 $43.0

WIT 0.0 0.0 $8.7IBN 3.0 0.9 $29.5

HDB 2.3 0.7 $29.7

Advances 1,643 922

Declines 1,027 492

Unchanged 130 78

BSE 1,579

NSE 7,813


2/13



L&T bags orders worth ` 7,44cr

Larsen & Toubro's (L&T) construction arm has bagged new orders worth over ` 7,44cr under various divisions so far in 1QFY2013. The power transmission anddistribution segment secured new orders worth ` 479cr from key customers,

including orders for electrical, instrumentation and automation works fromNational Mineral Development Corporation (NMDC), Jindal Power Limited andNTPC. An order has been secured from Power Grid Corp. for the construction ofoverhead transmission lines from Barh in Bihar to Gorakhpur in Uttar Pradesh.In the water and solar business, L&T construction has secured orders worth ` 265crfrom various customers for the construction of a solar thermal plant in Rajasthanand an EPC contract for the construction of a pumping station and allied works atBotad Branch Canal from Paliyad to Goma in Bhavnagar District, Gujarat.

At the CMP of ` 1,189, the stock is trading at PE of 15.6x FY2014E earnings, whichis below the historical trading multiple for L&T. We have used the SOTPmethodology to value the company to capture all its business initiatives andinvestments/stakes in different businesses. Ascribing separate values to its parentbusiness on a P/E basis and investments in subsidiaries on P/E, P/BV and mcapbasis, our target price works out to ` 1,553.

Result Reviews

Nalco

Nalco reported disappointing 4QFY2012 results. The companys net salesdeclined by 2.0% yoy to ` 1,785cr (below our estimate of ` 2,524cr). Raw-materialcost as a percentage of net sales stood at 13.9% in 4QFY2012 compared to12.2% in 4QFY2011. Further, power cost as a percentage of net sales stood at28.5% in 4QFY2012 compared to 25.7% in 4QFY2011. Hence, EBITDA decreased significantly by 32.2% yoy to ` 306cr and EBITDA margin contracted by 760bp yoy to 17.15%. Other income, however, grew by 63.9% yoy to ` 159cr in4QFY2012. Consequently, net profit decreased by 7.5% yoy to ` 282cr(significantly above our estimate of ` 115cr).

FY2013E 8,474 12.7 657 2.6 5.6 23.0 1.3 10.5 1.3FY2014E 9,024 16.3 922 3.6 7.6 16.4 1.2 7.9 1.3


3/13



Quarterly Bloomberg Brokers Consensus Estimate

Net profit 785 607 29 1,108 (29)

Net sales 6,153 4,986 23 6,646 (7)

EBITDA 1,515 1,287 18 1,003 51

EBITDA margin (%) 24.6 25.8 15.1

Net profit 605 627 (4) 263 130

Net sales 1,687 1,567 8 1,793 (6)

EBITDA 180 158 14 181 (1)

EBITDA margin (%) 10.7 10.1 10.1

Net profit 70 85 (17) 64 10

Net profit 759 700 8 770 (1)

Net sales 545 495 10 457 19

EBITDA 179 156 15 140 28

EBITDA margin (%) 32.8 31.5 30.6

Net profit 188 187 1 204 (8)


4/13



Economic and Political News RBI imposes restrictions on forex dealers as rupee breaches 55-mark Government to provide ` 38,500cr subsidy to oil companies for 4QFY2012 Lokayukta court orders probe against Yeddyurappa, Nirani White paper on black money a damp squib, states the obvious

Corporate News COT panel sets 2G price 17% above TRAIs BHEL bags contract for 1,320MW Solapur power project JSW Steel output up 35% in April at 715,000 tonnes Dr. Reddy's launches much-delayed acidity drug in the U.S. Government fixes turnover target of ` 68,000cr for MMTC

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


5/13

Date Company

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 Reliance Power, GSPL, TVS Motor, Madras Cements, Hitachi

May 25, 2012 ITC, NHPC, BPCL, Reliance Infra., Sun TV Network, Crompton Greaves, Suzlon Energy, MOIL, Jyoti StructuresMay 26, 2012 Rcom, Jagran Prakashan, Sarda Energy, TVS Srichakra

May 27, 2012 -

May 28, 2012 NMDC, IOC, Motherson Sumi, Bharat Forge, Britannia, Bajaj Electrical, Amara Raja Batteries, Indoco Remedies,Subros

May 29, 2012 ONGC, Tata Motors, Sun Pharma, Power Grid Corpn, SAIL, United Spirits, HPCL, GMR Infra., Aurobindo Pharma,Ipca labs, Nagarjuna Const., Prakash Industries, PVR

May 30, 2012 GAIL, M&M, Colgate, Tata Chemicals, HDIL, Page Industries, BGR Energy , PTC India, Anant Raj, GIPCL, SimplexInfra, Greenply May 31, 2012 -

June 01, 2012 Mphasis

June 02, 2012 -

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

May 22, 2012 Euro Zone Euro-Zone ConsumerConfidence Value Apr-12 (19.90) (20.50)

UK CPI (YoY) % Change Mar-12 3.50 3.10

US Existing home sales Millions Mar-12 4.48 4.61

May 23, 2012 US New home sales Thousands Mar-12 328.00 338.00

May 24, 2012 US Initial Jobless claims Thousands 12-May-12 370.00 370.00Germany GDP nsa (YoY) % Change Mar-12 1.70 1.70

Germany PMI Services Value Apr-12 52.20 52.00

Germany PMI Manufacturing Value Apr-12 46.20 47.00

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

May 29, 2012 US Consumer Confidence S.A./1985=100 Apr-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-12 115.00 155.00

US Unnemployment rate % Apr-12 8.10 8.10

China PMI Manufacturing Value Apr-12 53.30 --

India Imports YoY% % Change Mar-12 24.28 --

India Exports YoY% % Change Mar-12 (5.71) --

UK PMI Manufacturing Value Apr-12 50.50 --

June 06, 2012 Euro Zone Euro-Zone GDP s.a. (QoQ) % Change Mar-12 -- --

Euro Zone ECB announces interest rates % May-12 1.00 --

June 07, 2012 UK BOE Announces rates % Ratio May-12 0.50 0.50

June 09, 2012 China Industrial Production (YoY) % Change Apr-12 9.30 --

China Consumer Price Index (YoY) % Change Apr-12 3.40 --



May 22, 2012

Market Outlook


6/13

Market StrategyMay 22, 2012


Macro watch

Exhibit 1: Quarterly GDP trends

5.8 5.9

7.5

9.8

7.4

9.4

8.5

7.6

8.37.8 7.7

6.9

6.1

5.0

6.0

7.0

8.0

9.0

10.0

3 Q F Y 0 9

4 Q F Y 0 9

1 Q F Y 1 0

2 Q F Y 1 0

3 Q F Y 1 0

4 Q F Y 1 0

1 Q F Y 1 1

2 Q F Y 1 1

3 Q F Y 1 1

4 Q F Y 1 1

1 Q F Y 1 2

2 Q F Y 1 2

3 Q F Y 1 2

(%)

Source: CSO, Angel Research

Exhibit 2: IIP trends

5.36.2

9.5

3.7 3.42.5

(5.0)

6.0

2.71.1

4.1

(3.5)(6.0)

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

12.0

A p r - 1 1

M a y - 1 1

J u n - 1

1

J u l - 1 1

A u g - 1

1

S e p - 1

1

O c t - 1

1

N o v - 1 1

D e c - 1 1

J a n - 1

2

F e b - 1

2

M a r - 1 2

(%)

Source: MOSPI, Angel Research

Exhibit 3: Monthly WPI inflation trends

9.6 9.5 9.4 9.810.0 9.9 9.5

7.76.9 7.4 6.9 7.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

M a y - 1 1

J u n - 1

1

J u l - 1 1

A u g - 1

1

S e p - 1

1

O c t - 1

1

N o v - 1 1

D e c - 1 1

J a n - 1

2

F e b - 1

2

M a r - 1 2

A p r - 1 2

(%)

Source: MOSPI, Angel Research

Exhibit 4: Manufacturing and services PMI

48.0

50.0

52.0

54.0

56.0

58.0

60.0

A p r - 1 1

M a y - 1 1

J u n - 1

1

J u l - 1 1

A u g - 1

1

S e p - 1

1

O c t - 1

1

N o v - 1 1

D e c - 1 1

J a n - 1

2

F e b - 1

2

M a r - 1 2

A p r - 1 2

Mfg. PMI Services PMI

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

Exhibit 5: Exports and imports growth trends

(15)

0

15

30

45

60

75

90

A p r - 1 1

M a y - 1 1

J u n - 1

1

J u l - 1 1

A u g - 1

1

S e p - 1

1

O c t - 1

1

N o v - 1 1

D e c - 1 1

J a n - 1

2

F e b - 1

2

M a r - 1 2

Exports yoy growth Imports yoy growth(%)


Exhibit 6: Key policy rates

8.00

7.00

4.75

4.00

5.00

6.00

7.00

8.00

9.00

M a y - 1 1

J u n - 1

1

J u l - 1 1

A u g - 1

1

S e p - 1

1

O c t - 1

1

N o v - 1 1

D e c - 1 1

J a n - 1

2

F e b - 1

2

M a r - 1 2

A p r - 1 2

M a y - 1 2

Repo rate Reverse Repo rate CRR(%)

Source: RBI, Angel Research


7/13

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

( ) Price ( ) ( cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E

Agri / Agri Chemical

Rallis Neutral 123 - 2,391 1,432 1,647 14.7 14.7 7.0 8.0 17.6 15.4 3.7 3.2 22.8 22.3 1.7 1.4United Phosphorus Buy 117 183 5,386 8,191 8,764 16.5 16.5 17.1 18.3 6.8 6.4 1.1 1.0 17.5 16.2 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Buy 275 345 2,349 2,691 3,032 15.6 15.5 29.4 32.8 9.4 8.4 2.2 1.8 26.5 23.6 0.8 0.7

Apollo Tyres Buy 85 100 4,302 13,699 15,184 10.5 10.2 12.1 13.3 7.1 6.4 1.3 1.1 19.7 18.4 0.5 0.4 Ashok Leyland Buy 25 33 6,638 14,798 16,687 9.6 9.6 2.4 3.0 10.3 8.4 2.1 1.8 14.8 16.5 0.5 0.4

Automotive Axle Accumulate 476 514 719 1,211 1,387 12.1 11.7 50.3 57.1 9.5 8.3 2.4 1.9 27.8 25.7 0.6 0.5Bajaj Auto Buy 1,522 1,835 44,052 22,118 24,889 19.0 18.6 115.7 126.5 13.2 12.0 5.3 4.2 45.0 38.9 1.6 1.3Bharat Forge Buy 309 372 7,186 7,173 7,998 16.3 16.5 22.3 26.6 13.8 11.6 2.7 2.3 21.0 21.0 1.1 0.9

Bosch India Accumulate 8,947 9,429 28,092 9,390 10,716 19.5 19.1 420.2 471.4 21.3 19.0 5.0 4.1 23.3 21.8 2.7 2.3CEAT Buy 94 164 322 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 118 146 10,064 5,787 6,595 15.5 17.0 7.1 9.0 16.7 13.2 2.9 2.5 18.6 20.3 1.4 1.2FAG Bearings Neutral 1,540 - 2,559 1,531 1,748 18.8 18.5 118.0 132.8 13.1 11.6 2.8 2.3 24.0 21.9 1.4 1.2

Hero Motocorp Buy 1,870 2,280 37,339 26,106 29,296 15.0 15.2 140.3 148.1 13.3 12.6 6.3 4.8 54.8 43.3 1.1 0.9JK Tyre Buy 77 113 318 8,058 9,025 5.4 5.5 24.8 32.2 3.1 2.4 0.3 0.3 11.4 13.2 0.3 0.3Mahindra and Mahindra Buy 647 793 39,752 34,740 39,263 10.7 11.0 44.9 51.7 14.4 12.5 2.6 2.2 18.9 19.1 0.8 0.7

Maruti Buy 1,208 1,510 34,886 42,683 48,736 7.1 7.5 86.6 100.6 13.9 12.0 2.0 1.7 15.3 15.5 0.6 0.5Motherson Sumi Buy 165 216 6,395 11,167 12,516 9.5 10.0 11.3 14.4 14.6 11.5 3.2 2.6 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 0.3Tata Motors Buy 262 312 70,451 191,183 210,301 12.8 12.8 39.4 43.6 6.6 6.0 2.4 1.8 40.4 34.3 0.5 0.4

TVS Motor Buy 34 55 1,596 7,982 8,816 6.4 6.3 5.0 5.6 6.7 6.1 1.2 1.0 18.9 18.2 0.2 0.2

Capital Goods

ABB* Sell 710 498 15,049 8,760 10,023 6.4 6.4 18.2 20.7 39.0 34.2 5.2 4.7 14.4 14.6 1.7 1.5BGR Energy Reduce 290 274 2,094 4,170 5,396 11.5 10.4 27.2 30.4 10.7 9.6 1.8 1.6 17.3 17.4 1.1 1.0BHEL Neutral 206 - 50,531 46,344 46,916 18.3 18.6 23.5 24.1 8.8 8.6 1.7 1.5 21.3 18.9 1.0 0.9

Blue Star Buy 167 221 1,497 3,250 3,551 5.9 5.9 12.4 15.8 13.4 10.6 2.7 2.3 21.2 23.8 0.6 0.4Crompton Greaves Buy 119 164 7,608 12,936 14,101 9.6 10.0 10.9 11.7 10.9 10.1 1.9 1.6 18.4 17.3 0.6 0.5Jyoti Structures Buy 38 67 313 2,622 2,801 10.6 11.0 10.9 13.4 3.5 2.8 0.4 0.4 12.7 13.9 0.3 0.3

KEC International Buy 51 73 1,316 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 0.3LMW Buy 1,526 2,609 1,719 2,663 3,130 12.8 12.8 185.0 217.4 8.3 7.0 1.6 1.4 21.2 21.7 0.2 0.1

Thermax Neutral 428 - 5,104 5,514 5,559 8.3 8.0 29.7 28.4 14.4 15.1 2.7 2.4 20.2 16.9 0.8 0.8


May 22, 2012

Market Outlook

Stock Watch


8/13



Cement

ACC Neutral 1,145 - 21,495 11,018 12,663 19.9 21.2 70.7 81.2 16.2 14.1 2.8 2.6 18.0 19.0 1.7 1.4 Ambuja Cements Neutral 143 - 21,968 10,035 11,504 23.5 23.8 10.1 10.6 14.1 13.6 2.8 2.5 18.5 19.4 1.8 1.5

India Cements Neutral 75 - 2,296 4,423 4,906 18.2 18.8 9.9 12.7 7.6 5.9 0.6 0.6 8.6 10.5 0.8 0.7J K Lakshmi Cements Buy 64 79 781 1,880 2,201 19.0 22.6 12.2 16.4 5.3 3.9 0.6 0.5 11.9 14.3 0.6 0.9

Madras Cements Neutral 139 - 3,303 3,434 3,777 25.5 26.1 14.1 18.1 9.8 7.7 1.4 1.2 15.2 16.9 1.6 1.3Shree Cements Neutral 2,557 - 8,908 5,465 6,249 24.3 23.7 151.5 222.1 16.9 11.5 4.1 3.5 21.6 25.8 1.3 1.0

UltraTech Cement Neutral 1,409 - 38,623 20,116 22,655 21.3 22.5 82.1 97.5 17.2 14.5 2.7 2.3 16.8 17.4 1.8 1.8Construction

Ashoka Buildcon Buy 204 302 1,073 2,014 2,294 22.4 22.4 28.4 30.8 7.2 6.6 0.9 0.8 14.1 13.3 2.3 2.6

Consolidated Co Neutral 14 - 265 2,526 2,792 5.7 6.6 1.8 2.8 7.8 5.1 0.4 0.4 5.5 8.1 0.3 0.3Hind. Const. Neutral 19 - 1,131 4,239 4,522 11.1 11.8 (1.8) (0.8) (10.4) (23.9) 1.1 1.2 (9.5) (4.7) 1.3 1.2IRB Infra Buy 117 166 3,904 3,821 4,582 42.3 40.2 15.0 16.9 7.8 6.9 1.2 1.0 16.1 15.8 2.6 2.4

ITNL Buy 165 265 3,203 6,619 7,925 23.8 23.3 22.0 26.7 7.5 6.2 1.1 0.9 14.9 15.9 2.2 2.1IVRCL Infra Buy 45 79 1,198 5,758 6,860 9.2 9.2 4.7 6.0 9.6 7.4 0.6 0.5 6.0 7.3 0.7 0.6

Jaiprakash Asso. Buy 63 104 13,460 16,017 18,359 24.4 23.5 4.2 5.0 15.1 12.6 1.3 1.2 8.8 9.7 2.2 1.9Larsen & Toubro Buy 1,189 1,553 72,814 59,559 69,089 12.1 11.5 70.8 76.5 16.8 15.6 2.5 2.2 16.1 15.3 1.4 1.2

Madhucon Proj Buy 46 70 341 2,206 2,502 10.7 10.7 4.6 4.7 10.0 9.9 0.5 0.5 5.2 5.0 0.7 0.7Nagarjuna Const. Buy 32 76 829 5,790 7,022 9.2 9.5 3.5 5.4 9.3 6.0 0.3 0.3 3.7 5.6 0.8 0.7Patel Engg. Neutral 86 - 600 3,609 3,836 13.1 13.1 14.0 14.6 6.1 5.9 0.4 0.4 6.3 6.1 1.0 1.1

Punj Lloyd Neutral 46 - 1,529 10,592 12,193 8.4 8.4 2.9 4.6 15.9 10.1 0.5 0.5 3.9 3.1 0.6 0.6Sadbhav Engg. Buy 132 199 1,977 2,989 3,315 10.6 10.6 10.2 11.3 13.0 11.6 2.1 1.8 17.6 16.3 0.8 0.8

Simplex Infra Buy 211 316 1,042 6,732 7,902 9.3 9.6 27.2 35.1 7.7 6.0 0.8 0.7 11.0 12.6 0.5 0.4

Financials Allahabad Bank Accumulate 146 166 7,323 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 107 - 5,962 5,151 5,843 3.2 3.1 22.4 25.7 4.8 4.2 0.7 0.7 15.8 16.0 - - Axis Bank Buy 963 1,476 39,848 16,157 19,557 3.2 3.2 116.4 139.1 8.3 6.9 1.5 1.3 20.0 20.3 - -

Bank of Baroda Buy 666 925 26,057 15,993 18,918 2.6 2.6 127.3 149.9 5.2 4.4 0.9 0.8 17.8 18.2 - -Bank of India Buy 318 411 18,246 13,558 15,551 2.5 2.4 61.6 70.8 5.2 4.5 0.9 0.7 16.8 16.9 - -

Bank of Maharashtra Accumulate 48 53 2,845 3,580 4,050 3.2 3.2 11.5 13.1 4.2 3.7 0.7 0.6 17.4 17.2 - -Canara Bank Buy 393 522 17,390 12,061 13,906 2.3 2.3 83.1 92.7 4.7 4.2 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 22, 2012

Market Outlook

Stock Watch


9/13



Financials

Corporation Bank Buy 406 486 6,015 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 86 111 3,009 3,149 3,522 2.8 2.8 23.3 26.1 3.7 3.3 0.6 0.5 17.7 17.0 - -

Federal Bank Neutral 411 - 7,028 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 641 - 94,721 7,393 8,844 3.5 3.4 31.7 37.9 20.2 16.9 4.0 3.6 34.7 31.9 - -

HDFC Bank Accumulate 497 567 116,810 21,831 27,477 4.3 4.3 28.3 35.5 17.6 14.0 3.4 2.9 20.8 22.1 - -ICICI Bank Buy 811 1,174 93,185 22,209 26,512 2.8 2.8 67.9 81.1 11.9 10.0 1.4 1.3 14.7 16.0 - -

IDBI Bank Buy 90 117 11,442 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 183 197 7,843 6,312 7,119 3.4 3.3 41.1 43.7 4.4 4.2 0.8 0.7 18.2 16.9 - -IOB Buy 80 96 6,396 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 896 952 4,345 2,535 2,861 3.5 3.4 176.3 184.4 5.1 4.9 0.9 0.8 19.3 17.6 - -LIC Housing Finance Buy 242 286 12,225 2,108 2,607 2.6 2.6 24.5 30.6 9.9 7.9 1.8 1.6 20.1 21.4 - -

Oriental Bank Buy 219 274 6,401 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 723 1,015 24,512 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 - 2,514 1,399 1,596 2.6 2.5 3.5 3.8 6.3 5.9 1.1 1.0 18.7 17.5 - -St Bk of India Buy 2,007 2,486 134,706 68,925 80,565 3.7 3.7 236.6 282.7 8.5 7.1 1.4 1.2 18.6 19.3 - -Syndicate Bank Buy 89 131 5,363 7,133 8,255 3.0 3.0 25.9 30.0 3.4 3.0 0.5 0.5 16.9 17.1 - -

UCO Bank Neutral 68 - 4,520 5,623 6,380 2.4 2.4 16.9 17.9 4.0 3.8 0.8 0.7 16.5 15.4 - -Union Bank Buy 203 276 11,198 10,215 11,854 2.9 2.8 42.7 50.3 4.8 4.1 0.8 0.7 17.0 17.5 - -

United Bank Buy 57 78 2,063 3,551 4,128 2.7 2.8 18.8 22.6 3.1 2.5 0.5 0.4 15.5 16.5 - - Vijaya Bank Neutral 54 - 2,668 2,668 3,001 2.2 2.2 10.6 12.2 5.1 4.4 0.7 0.6 13.3 13.8 - -

Yes Bank Buy 321 450 11,366 3,209 4,144 2.7 2.8 33.9 41.5 9.5 7.7 2.0 1.6 23.1 23.3 - -

FMCG

Asian Paints Neutral 3,745 - 35,920 11,423 13,309 16.3 16.3 125.3 148.4 29.9 25.2 10.2 8.0 38.0 35.4 3.1 2.6Britannia Buy 528 650 6,305 5,906 6,856 6.9 7.0 22.3 28.3 23.6 18.7 9.7 7.2 45.2 44.1 1.1 0.9Colgate Neutral 1,218 - 16,563 3,007 3,417 21.1 22.1 37.7 42.6 32.3 28.6 38.5 31.1 129.4 120.1 5.4 4.7

Dabur India Neutral 105 - 18,283 5,878 6,799 16.8 17.0 4.2 4.9 25.3 21.4 9.2 7.5 39.3 42.0 3.1 2.7GlaxoSmith Con* Neutral 2,672 - 11,239 3,124 3,663 17.1 11.6 103.0 123.3 26.0 21.7 8.0 6.4 34.0 32.9 3.3 2.7Godrej Consumer Neutral 553 - 18,815 5,973 7,000 18.4 18.6 22.8 27.2 24.2 20.4 6.7 5.4 31.3 38.4 3.4 2.8

HUL Neutral 427 - 92,243 25,350 29,309 14.3 14.4 14.1 16.4 30.2 26.0 22.6 17.7 82.7 76.2 3.5 3.0ITC Accumulate 235 252 183,928 28,955 33,595 35.9 35.7 9.2 10.5 25.7 22.4 8.2 6.8 34.8 33.1 6.1 5.2


May 22, 2012

Market Outlook

Stock Watch


10/13



FMCG

Marico Neutral 171 - 10,512 4,667 5,427 12.8 12.9 6.6 8.1 25.7 21.0 6.9 5.4 30.0 28.8 2.3 1.9Nestle* Neutral 4,668 - 45,007 8,731 10,539 21.0 21.4 119.3 147.9 39.1 31.6 24.0 16.3 73.0 61.6 5.2 4.2

Tata Global Buy 107 136 6,605 7,011 7,712 9.7 10.0 6.0 7.1 18.0 15.0 1.6 1.6 8.9 10.2 0.8 0.8

IT

HCL Tech Buy 480 560 33,249 22,792 25,743 17.4 17.4 37.8 43.0 12.7 11.2 2.8 2.4 22.3 21.3 1.4 1.2

Hexaware Accumulate 118 128 3,498 1,821 2,105 19.0 18.6 9.8 10.7 12.0 11.0 2.8 2.4 23.7 22.5 1.7 1.4

Infosys Buy 2,345 2,792 134,628 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 2.5Infotech Enterprises Accumulate 167 177 1,860 1,758 1,972 17.0 16.6 16.8 18.6 9.9 9.0 1.4 1.2 13.6 13.2 0.7 0.5KPIT Cummins Reduce 123 114 2,189 2,028 2,239 15.0 14.8 9.0 11.4 13.7 10.8 2.5 2.0 19.3 18.7 1.1 0.9

Mahindra Satyam Buy 70 89 8,238 7,142 8,042 15.4 15.0 7.7 8.3 9.2 8.5 1.3 1.1 13.8 13.0 0.8 0.6Mindtree Neutral 608 - 2,468 2,172 2,450 16.1 15.5 53.9 58.5 11.3 10.4 2.1 1.8 18.9 17.0 0.9 0.8Mphasis Accumulate 381 433 8,001 5,904 6,320 18.3 17.9 38.7 41.2 9.8 9.2 1.5 1.3 14.9 13.7 0.9 0.8

NIIT Buy 40 52 655 1,162 1,304 14.8 15.1 7.1 8.8 5.6 4.5 0.9 0.8 16.7 18.4 0.4 0.3Persistent Neutral 350 - 1,398 1,109 1,224 23.3 22.4 37.2 40.1 9.4 8.7 1.4 1.3 15.4 14.5 0.9 0.8

TCS Accumulate 1,209 1,276 236,608 57,189 66,329 29.3 28.7 63.2 70.9 19.1 17.1 5.8 4.7 30.5 27.7 3.9 3.3Tech Mahindra Buy 611 750 7,790 6,030 6,511 16.3 15.7 81.1 87.0 7.5 7.0 1.5 1.3 20.1 18.0 1.3 1.0

Wipro Accumulate 382 430 93,976 41,918 46,879 19.4 19.9 25.1 28.7 15.2 13.3 2.8 2.5 18.6 18.3 1.9 1.6

Media

D B Corp Buy 200 269 3,666 1,652 1,863 25.7 26.3 13.5 16.1 14.8 12.4 3.3 2.8 24.1 24.4 2.1 1.8

HT Media Buy 113 170 2,666 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 0.8Jagran Prakashan Buy 83 137 2,628 1,499 1,642 27.4 28.8 7.6 9.1 10.9 9.2 3.7 3.3 34.6 37.7 1.7 1.6

PVR Neutral 147 - 381 625 732 17.4 16.9 12.4 15.8 11.8 9.3 1.9 2.0 8.5 9.9 0.8 0.6

Sun TV Network Neutral 258 - 10,185 2,135 2,458 75.2 74.4 20.9 24.0 12.4 10.8 2.9 2.4 26.0 25.1 3.8 3.0Metals & Mining

Bhushan Steel Neutral 436 - 9,250 9,232 13,557 30.8 31.1 48.0 58.6 9.1 7.4 1.2 1.0 14.5 7.5 3.1 2.2Coal India Accumulate 310 351 196,092 65,654 71,756 26.8 27.3 24.0 26.3 12.9 11.8 3.5 2.9 30.4 27.0 2.0 1.7Electrosteel Castings Buy 19 27 656 1,984 2,074 10.6 12.0 2.7 3.3 7.0 5.8 0.3 0.1 5.2 6.2 0.4 0.4

Hind. Zinc Buy 116 139 49,077 13,043 14,223 51.8 52.8 14.8 16.6 7.8 7.0 1.5 1.3 21.2 19.9 2.1 1.5Hindalco Neutral 110 - 21,117 84,652 88,766 9.6 10.5 17.0 18.9 6.5 5.9 0.6 0.6 9.7 9.8 0.5 0.5

JSW Steel Accumulate 611 663 13,624 39,592 44,910 18.0 17.7 74.7 88.9 8.2 6.9 0.8 0.7 10.7 11.6 0.7 0.7MOIL Neutral 257 - 4,313 979 1,061 45.7 46.8 24.5 26.6 10.5 9.7 1.6 1.5 16.1 15.8 2.3 1.9

Monnet Ispat Buy 415 593 2,670 3,115 3,748 22.1 25.1 59.1 66.8 7.0 6.2 1.0 0.9 15.6 15.3 1.6 1.2


May 22, 2012

Market Outlook

Stock Watch


11/13



Metals & Mining

Nalco Sell 61 51 15,670 8,276 8,578 12.7 16.4 2.5 3.5 24.0 17.4 1.3 1.3 5.6 7.5 1.5 1.4NMDC Accumulate 169 185 66,905 11,726 12,890 77.8 78.4 18.6 20.6 9.1 8.2 2.2 1.8 26.1 23.8 3.5 3.0

SAIL Accumulate 91 102 37,588 52,461 62,935 18.0 18.8 13.2 14.5 6.9 6.3 0.8 0.7 12.4 12.3 1.1 1.0Sesa Goa Accumulate 194 206 16,843 9,067 9,316 35.7 35.5 44.5 44.3 4.4 4.4 0.9 0.8 23.5 19.5 0.5 0.2

Sterlite Inds Buy 100 123 33,522 45,805 49,029 21.2 23.5 16.5 19.1 6.0 5.2 0.7 0.6 11.5 12.0 0.4 0.2Tata Steel Buy 402 503 39,062 141,358 142,265 11.1 13.7 45.8 58.9 8.8 6.8 0.8 0.8 10.0 11.7 0.6 0.6

Oil & GasCairn India Accumulate 324 372 61,783 15,513 16,074 74.0 69.7 51.1 48.6 6.3 6.7 1.1 0.9 18.3 14.8 2.9 2.1GAIL Buy 320 392 40,629 50,472 55,503 15.3 15.6 35.4 37.0 9.0 8.7 1.6 1.4 18.7 17.0 0.5 0.4

ONGC Buy 247 319 211,235 148,157 150,563 37.6 39.5 31.0 33.6 8.0 7.3 1.4 1.3 18.8 18.1 1.1 0.9Reliance Industries Buy 696 872 227,745 325,734 328,669 10.9 11.7 65.8 70.1 10.6 9.9 1.1 1.0 11.9 11.5 0.7 0.7

Pharmaceuticals

Alembic Pharma Buy 49 91 916 1,624 1,855 14.2 15.6 6.6 9.1 7.4 5.3 1.8 1.4 27.5 29.2 0.8 0.7 Aurobindo Pharma Buy 108 175 3,147 5,243 5,767 14.6 14.6 13.8 14.7 7.8 7.4 0.9 0.4 11.4 10.9 0.9 0.8 Aventis* Neutral 2,107 - 4,851 1,482 1,682 15.5 15.5 95.0 104.0 22.2 20.3 3.9 3.1 18.6 17.0 3.1 2.6

Cadila Healthcare Buy 771 953 15,777 6,196 7,443 18.5 19.5 43.3 50.8 17.8 15.2 4.6 3.7 25.4 24.8 2.6 2.0Cipla Buy 313 379 25,115 7,687 8,804 21.4 21.4 16.5 18.9 19.0 16.6 2.9 2.6 16.7 16.8 3.2 2.8

Dr Reddy's Neutral 1,651 - 27,979 10,696 11,662 20.7 21.0 83.7 92.9 19.7 17.8 4.1 3.4 22.4 21.0 2.7 2.5Dishman Pharma Buy 47 92 375 1,280 1,536 17.8 17.8 9.2 11.3 5.1 4.1 0.4 0.4 7.7 8.5 1.0 0.8

GSK Pharma* Neutral 2,039 - 17,269 2,651 2,993 31.7 31.2 76.0 82.4 26.8 24.7 7.7 6.7 30.8 29.0 5.6 4.9Indoco Remedies Buy 59 665 543 685 837 15.2 15.2 55.5 66.5 1.1 0.9 0.2 0.1 16.4 16.9 1.0 0.9

Ipca labs Buy 342 443 4,296 2,907 3,541 21.5 21.5 32.4 40.6 10.5 8.4 2.6 2.1 27.8 27.7 1.6 1.3

Lupin Buy 544 646 24,305 8,426 10,082 19.7 20.0 29.7 32.4 18.3 16.8 4.8 3.8 27.0 25.2 2.8 2.2Orchid Chemicals Buy 128 178 900 2,117 2,434 17.7 17.7 16.7 22.2 7.7 5.8 0.7 0.6 9.5 11.5 1.1 0.9

Ranbaxy* Neutral 490 - 20,694 12,046 11,980 18.0 15.8 35.7 29.8 13.7 16.5 5.1 4.2 43.1 28.1 1.8 1.7Sun Pharma Accumulate 593 634 61,079 9,272 11,080 40.3 36.3 26.7 28.8 22.2 20.6 4.5 3.8 22.1 20.8 5.6 4.6

Power

CESC Buy 269 342 3,365 5,084 5,512 24.2 23.8 45.2 48.5 6.0 5.6 0.6 0.6 11.2 10.9 1.1 1.1GIPCL Buy 61 98 920 1,557 1,573 28.7 27.5 10.4 10.2 5.9 6.0 0.6 0.6 10.5 9.6 1.0 0.9

NTPC Buy 144 201 118,611 74,766 86,549 23.1 23.4 12.4 14.1 11.6 10.2 1.5 1.3 13.0 13.5 2.3 2.1

Real Estate

Anant Raj Buy 52 78 1,536 657 875 52.0 56.1 8.4 12.7 6.2 4.1 0.4 0.4 6.3 8.9 3.6 2.7

DLF Neutral 189 - 32,176 9,878 12,033 44.7 46.1 9.6 13.4 19.8 14.1 1.3 1.2 6.4 8.7 5.8 4.7


May 22, 2012

Market Outlook

Stock Watch


12/13



Real Estate

HDIL Buy 63 115 2,646 2,441 3,344 53.0 46.7 21.4 25.4 3.0 2.5 0.2 0.2 8.4 9.1 2.9 2.2

Telecom

Bharti Airtel Neutral 295 - 112,065 80,967 88,684 33.1 33.4 17.9 22.0 16.5 13.4 1.9 1.7 11.5 12.5 2.1 1.7

Idea Cellular Neutral 82 - 27,203 22,558 25,326 26.4 27.5 3.2 4.7 25.5 17.3 1.9 1.7 7.5 10.0 1.7 1.5Rcom Neutral 66 - 13,612 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 Accumulate 224 245 2,235 3,670 4,384 8.5 8.5 18.3 22.3 12.2 10.1 2.7 2.2 23.9 24.3 0.6 0.5CRISIL Neutral 1,050 - 7,368 982 1,136 34.3 34.3 34.3 40.0 30.6 26.3 13.8 11.1 50.9 46.9 7.1 5.9

Finolex Cables Buy 37 61 570 2,334 2,687 8.8 9.3 7.6 10.2 4.9 3.7 0.6 0.6 13.7 16.1 0.2 0.1Graphite India Buy 91 124 1,769 2,158 2,406 18.1 18.9 12.4 14.0 7.3 6.5 1.0 0.9 14.0 14.3 1.0 0.8

Greenply Buy 219 298 528 1,800 2,047 11.1 11.6 34.1 49.6 6.4 4.4 1.2 0.9 20.2 23.7 0.6 0.4Page Industries Neutral 3,019 - 3,367 935 1,168 19.6 19.6 99.7 122.2 30.3 24.7 17.5 14.0 64.2 63.1 3.7 2.9

Sintex Buy 52 129 1,421 4,751 5,189 16.3 16.6 13.6 15.8 3.8 3.3 0.5 0.4 13.1 13.4 0.7 0.5Siyaram Silk Mills Buy 266 439 249 1,042 1,173 12.4 12.5 66.3 78.5 4.0 3.4 0.8 0.6 21.1 20.8 0.5 0.4SpiceJet Neutral 31 - 1,499 5,384 6,443 (1.0) 4.1 (3.4) 2.4 (9.1) 13.0 (12.5) 26.4 - - 0.5 0.4

Taj GVK Buy 58 108 366 300 319 35.8 36.2 7.9 9.1 7.4 6.4 1.0 0.9 13.9 14.4 1.5 1.3

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on May 21, 2012


May 22, 2012

Market Outlook

Stock Watch


13/13

May 22, 2012

Market Outlook

Documents

Market Outlook 220512