Market Outlook 25.07.2013

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Market Outlook July 25, 2013

Dealers Diary Indian markets are expected to open in the red today tracking a weak opening inSGX Nifty, which is down by 0.5% and most of the other Asian markets, which too,are trading in the negative territory.

US markets saw a reduction in the selling pressure on Wednesday, however, anegative reaction to some earnings news and lingering concerns about the outlookfor Feds stimulus program resulted in some weakness. The major indices endedthe day in opposite directions. While the Dow was down by 0.2% but the Nasdaqedged up 0.3%. S&P 500 too fell by 0.4% during the day. The weakness in USmarkets also came on the back of data from the Commerce Department showinga substantial increase in new home sales which added to the concerns about theoutlook for the Fed's asset purchase program. Trading on Thursday could also beimpacted by the release of reports on weekly jobless claims and durable goodsorders. Meanwhile, the European markets finished in positive territory due toseveral better than expected European economic results and US data.

Meanwhile the Indian markets dropped sharply on Wednesday after the RBIannounced additional liquidity tightening measures to support the rupee andcontrol gold imports.

Markets Today

The trend deciding level for the day is 20,113 / 6,000 levels. If NIFTY trades abovethis level during the first half-an-hour of trade then we may witness a further rally up to 20,231 20,371 / 6,038 6,085 levels. However, if NIFTY trades below20,113 / 6,000 levels for the first half-an-hour of trade then it may correct up to19,972 19,854 / 5,953 5,915 levels.

Indices S2 S1 PIVOT R1 R2SENSEX 19,854 19,972 20,113 20,231 20,371

NIFTY 5,915 5,953 6,000 6,038 6,085

News Analysis Holcim to raise stake in Ambuja Cements to 61.39% Result Review: Cairn India, Hero MotoCorp, Dabur India, Yes Bank, Central

Bank, United Phosphorus, MLIFE Result Preview: ITC, Maruti Suzuki, GAIL, Sterlite Industries, ACC, Thermax,

IOB, FAG BearingsRefer detailed news analysis on the following page

Net Inflows (July 23, 2013)` cr Purch Sales Net MTD YTDFII 2,526 2,305 221 (5,766) 65,541MFs 440 397 44 (940) (13,117)

FII Derivatives (July 24, 2013)` cr Purch Sales Net Open InterestIndex Futures 5,376 4,895 481 19,118Stock Futures 7,980 8,656 (675) 30,591

Gainers / LosersGainers Losers

Company Price ( ` ) chg (%) Company Price ( ` ) chg (%)Idea Cellular 154 3.6 Wockhardt 661 (20.0)

Dabur India 175 2.4 Yes Bank 383 (12.6)

Tech Mahindra 1,206 2.3 Bank of India 197 (8.7)

TTK Prestige 3,365 2.3 Indusind Bank 423 (8.5)

Bharti Airtel 337 2.2 IDFC 118 (8.4)

Domestic Indices Chg (%) (Pts) (Close)

BSE Sensex (1.0) (211) 20,091

Nifty (1.4) (87) 5,991

MID CAP (1.8) (109) 5,890SMALL CAP (1.4) (81) 5,602

BSE HC (0.3) (24) 9,317

BSE PSU (1.8) (105) 5,855

BANKEX (4.6) (592) 12,238

AUTO (1.3) (139) 10,698

METAL (2.1) (158) 7,361

OIL & GAS (0.5) (43) 9,017

BSE IT 1.0 74 7,255

Global Indices Chg (%) (Pts) (Close)

Dow Jones (0.2) (26) 15,542NASDAQ 0.0 0 3,580

FTSE 0.3 23 6,620

Nikkei (0.3) (47) 14,731

Hang Sang 0.2 54 21,969

Straits Times 0.6 21 3,275

Shanghai Com (0.5) (11) 2,033

Indian AD R Chg (%) (Pts) (Close)

INFY 1.7 0.9 $49.6

WIT 1.1 0.1 $8.2IBN (2.3) (0.8) $34.7HDB (3.0) (1.1) $36.0

Advances / Declines BSE NSE

Advances 747 307

Declines 1,550 1,025

Unchanged 123 68

Volumes ( ` cr)

BSE 1,862NSE 11,603

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Holcim to raise stake in Ambuja Cements to 61.39%

Holcim the promoter of ACC and Ambuja Cements (Ambuja) has announced thatit will increase its stake in Ambuja Cements from 50.5% to 61.4% in a two stagedeal. Post the completion of this deal Ambuja, will become the flagship company

of Holcim in India and hold a 50.01% stake in ACC. Ambuja intends to furtherincrease its stake in ACC by 10% for an investment of up to ` 3,000 cr throughopen-market purchases.

Two stage deal

Under the current deal, Ambuja will first acquire 24% stake in Holcim India Pvt Ltd(HIPL) a wholly-owned financial holding company of Holcim for a cashconsideration of ` 3,500cr, followed by a merger of both the companies. Atpresent, HIPL directly holds a 9.76% stake in Ambuja and a 50.01% stake in ACC.

After the merger, Holcim Indias stake in Ambuja will stand canc elled and Ambujawill own 50.01% stake in ACC. The swap ratio for the merger will be one Ambujashare for 7.4 Holcim India shares, translating into an implied swap ratio of 6.6

Ambuja shares for every ACC share. Ambuja will issue 584 million new equity shares to Holcim, as consideration for the merger.

Deal Impact

The deal is expected to bring in operational benefits for both ACC and Ambujadue to reduction in operational costs due to supply chain optimization. As per ourworkings ACC has been valued at EV/tonne of ~US$135. We maintain a neutralrating on Ambuja and maintain Accumulate on ACC.

Result Review

Cairn India (CMP: ` 308/TP: ` 345/Upside: 12%)

Cairn India 1QFY2014 results were below our expectations on both top-line andprofitability front. The companys top line decreased by 8.5% yoy to ` 4,062cr(below our expectation of ` 4,232cr) due to increase in the profit petroleum sharedwith the government for the Rajasthan block. The companys gross productionaveraged 212,442boepd (+3.0% yoy) during the quarter. Although gross crude oilrealization decreased by 6.0% yoy to US$94.6/bbl, INR depreciation against theUSD offset this impact marginally. EBITDA also declined by 13.8% yoy to ` 3,009crdue to increase in operational costs and EBITDA margin contracted by 458bp yoy to 74.1%. The company recorded an exceptional forex gain of ` 682cr on accountof forex fluctuation during 1QFY2014. Excluding this exceptional loss, adjusted netprofit declined by 17.4% yoy to ` 2,445cr (below our estimate of ` 2,857cr).Reported net profit also declined by 18.3% yoy to ` 3,127cr. We maintain ourAccumulate rating on the stock with a target price of ` 345.

Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March ( ` cr) (%) ( cr) (` ) (%) (x) (x) (x) (x)

FY2014E 16,482 72.0 10,168 53.2 19.6 5.8 1.0 3.5 2.5

FY2015E 16,228 69.4 9,454 49.5 15.8 6.2 0.9 3.2 2.2
http://www.business-standard.com/search?type=news&q=Stakehttp://www.business-standard.com/search?type=news&q=Stake

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Hero MotoCorp (CMP: ` 1,758/ TP: - / Upside: -)

Hero MotoCorp (HMCL) reported mixed set of results for 1QFY2014 with betterthan expected operating margins; however, top-line and bottom-line wasmarginally lower than our estimates. Top-line missed the estimates on account of

lower than expected growth in net average realization; while, bottom-line wasimpacted due to higher tax rate.

For 1QFY2014, HMCLs top -line recorded a decline of 1.4% yoy (flat qoq) to ` 6,160cr which was marginally lower than our estimates of ` 6,290cr. The top-linewas impacted largely on account of a 5% yoy decline in volumes led by slowdownin demand and higher competition from Honda Motors and Scooters India.Nevertheless, net average realization surged by 3.8% yoy largely led by priceincreases which mitigated the impact of volume decline to some extent. On theoperating front, EBITDA margins surprised positively and jumped ~100bpsequentially to 14.9%. This was ahead of our expectations of 14.1% and was

driven by a 10% qoq decline in other expenditure, which could be on account oflower advertising expenditure. On a yoy basis, margins remained broadly flat asthe positive impact of softening of commodity prices was mitigated by an increasein other expenditure. Thus operating profit declined 2.3% yoy (up 7.7% qoq) to ` 915cr. Nonetheless, net profit reported a sharp decline of 10.9% yoy (4.5% qoq)to ` 549cr, marginally below our estimates of ` 568cr. This was primarily onaccount of a higher tax rate (26.9% as against expectations of 22.5%) due to theexpiration of tax benefits at the Haridwar plant. At the CMP of ` 1,758, the stock istrading at 12.6x FY2015E earnings. We are in the process of revising ourestimates and shall come up with a detailed note soon. Until then, we maintainour Neutral rating on the stock.

Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales March ( cr) (%) ( cr) (` ) (%) (x) (x) (x) (x) FY2014E 25,298 14.1 2,202 110.3 39.9 15.9 5.8 8.3 1.2 FY2015E 27,665 13.7 2,795 140.0 40.7 12.6 4.6 7.5 1.0

Dabur India (CMP: ` 175/TP:-/Upside:-)

For 1QFY2014 Dabur posted an in-line result with the top-line and bottom-lineincreasing by 12.9% yoy and 24.5% yoy respectively. The companys consolidatednet sales stood at ` 1,651cr. Consumer care and Foods businesses posted growthof 14.3% and 18.2% respectively. Domest ic FMCG businesses volume growthstood at a healthy 9% on yoy basis. OPM rose by 26bp yoy to 14.3%, while grossmargin rose by 115bp yoy. Other expenses as a % of sales rose 58bp yoy to13.5%. Other income rose by 22.8% yoy to 42cr. Net Profit stood at ` 186cr. Wemaintain a neutral rating on the stock.

Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/sales

March ( ` cr) (%) ( cr) (` ) (%) (x) (x) (x) (x)

FY2014E 7,183 16.8 935 5.3 39.2 32.7 11.5 25.8 4.3

FY2015E 8,340 16.8 1,094 6.3 36.6 27.9 9.2 22.0 3.7

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Yes Bank (CMP: ` 383 / TP: - / Upside:- )

Yes Bank reported a strong operating performance during the quarter, which wason expected lines. While NII expectedly grew by 39.6% yoy, boosted by treasury gains other income registered a growth of 53.4% yoy (which was higher than

estimates), thereby aiding pre-provisioning profit growth of 47.9% yoy, slightly above estimates. On the asset quality front, Gross and Net NPA ratios remainedlargely stable at 0.22% and 0.03%, respectively. The bank used the opportunity created by higher trading gains to make higher provisions (provisioning expensesalmost tripled), which resulted in earnings growth of 38% yoy.

Going ahead, as per managements guidance of 50 -60bp credit costs for currentfiscal and adversely labeled assets at around 1 -2% of loan book, a significantincrease in provisioning costs for the bank can be expected from the current levels.Due to recent macro developments, the outlook on trading gains going aheadappears challenging. As a result, even with 25% balance sheet growth, earnings

may grow even below 20% for the bank. We believe all the positives for Yes Bankare factored in, while going forward outlook for coming quarters appearschallenging. At CMP yes Bank is trading at 1.6x FY2015 ABV. We recommend aNeutral rating for the stock.

Y/E Op. Inc NIM PAT EPS ABV ROA ROE P/E P/ABV

March ( ` cr) (%) ( cr) (` ) (%) (x) (x) (x) (x)

FY2014E 4,451 2.8 1,543 43.0 197.4 1.4 23.9 8.9 1.9

FY2015E 5,526 2.8 1,784 49.7 238.5 1.3 22.8 7.7 1.6

Central Bank- (CMP: ` 62 / TP: - / Upside: -)

Central Bank reported disappointing set of numbers for the quarter, dragged by asset quality pressures. While NII grew by 11.6% yoy, primarily boosted by tradinggains other income grew by 85.5% yoy at ` 598cr, thereby aiding pre-provisioningprofit growth of 26.2% yoy at ` 1,001cr. On the asset quality front, the slippagesduring the quarter spiked to 5.6%, highest since the bank made switchover tosystem based NPA recognition. Performance on the Recoveries/Upgrades alsocame in much lower sequentially. Gross and Net NPA levels jumped upsequentially by 24.9% and 30.9%, respectively, on an already large base.Consequently, the provisioning expenses for the bank almost tripled on a yoy basis, thereby resulting in earnings de-growth of 93.5% yoy. At the CMP, the stocktrades at valuations of 0.5x FY2015E ABV. We maintain our Neutralrecommendation on the stock.


March ( ` cr) (%) ( cr) (` ) (%) (x) (x) (x) (x)

FY2014E 8,406 2.5 1,462 12.6 100.7 0.5 10.6 4.9 0.6

FY2015E 9,546 2.5 2,107 18.7 114.7 0.6 14.3 3.3 0.5

United Phosphorus (CMP: ` 143/ TP: 232-/ Upside: 62%)

United Phosphorus posted a 10.5% yoy growth in consolidated net sales to ` 2,409cr.OPM came in at 17.0% rose by 80bp yoy. Reported net profit rose by 4.8% on a yoy basis to ` 213cr. The rise in interest expenses during the quarter

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which rose by 22.4% yoy during the period restricted the net profit growth duringthe period. We maintain a buy rating on the stock with a target price of ` 232.


March ( ` cr) (%) ( cr) (` ) (%) (x) (x) (x) (x)

FY2014E 10,298 16.5 907 20.5 22.2 7.0 1.2 3.9 0.6FY2015E 11,310 16.5 1025 8.9 23.2 6.1 1.0 3.1 0.5

MLIFE (CMP: ` 464/ TP: Under Review / Upside :-)

For 1QFY2014, Mahindra Lifespace Developers (MLIFE) posted disappointing setof numbers which were below consensus estimates, both on the revenue andprofitability fronts. MLIFEs standalone revenue reported a decline of 35.6% yoy to ` 67cr in 1QFY2014; which was lower than consensus estimate of ` 104.4cr.Standalone EBITDA decreased by 71% yoy to ` 9cr, owing to lower-than-expectedrevenue recognition and increase in staff cost during the quarter. On earningsfront, the companys PAT decreased by 46.2% yoy to ` 16cr (consensus estimatewas ` 22.8cr). On a consolidated level, MLIFE reported a revenue of ` 176.1cr andPAT of ` 21.8cr, suggesting a profit for its subsidiaries at net level. During thequarter, the company has acquired two land parcels one in Boisar, MMR affordable housing (~0.5mn sqft) and Gurgaon, Haryana region (0.92mn sq ft).The company has also launch its maiden luxury housing project in Pune during thequarter. Currently, the target price and rating is under review. We shall revise ourestimates post earnings conference call with the management schedule on 25thJuly 2013 at 11.00 am.


March ( ` cr) (%) ( cr) (` ) (%) (x) (x) (x) (x)

FY2014E 888 30.6 159 39.0 11.2 10.2 1.1 8.3 2.6

FY2015E 1,002 30.6 178 43.5 11.4 9.1 1.0 7.5 2.3

Result Preview

ITC (CMP: ` 376/TP:-/Upside:-)

ITC is expected to announce its 1QFY2014 results today. We expect thetop-line to grow by 16.0% yoy to ` 7,714cr. OPM is expected to remain flat at

34.7%. Bottom-line is expected to increase by 18.5% yoy to ` 1,898cr. We maintainour Neutral recommendation on the stock.

Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/sales

March ( ` cr) (%) ( cr) (` ) (%) (x) (x) (x) (x)

FY2014E 34,294 36.8 8,909 22.4 36.1 33.4 11.0 22.4 8.2

FY2015E 39,991 37.0 10,543 18.8 34.9 28.2 8.9 18.8 6.9

Maruti Suzuki (CMP: ` 1,416/ TP: ` 1,822/ Upside: 29%)

Maruti Suzuki (MSIL) is scheduled to announce its 1QFY2014 results today. The

company reported a ~10% yoy decline in volumes in 1QFY2014 on account of aslowdown in petrol and diesel car sales and also due to decline in exports.However, led by ~6% yoy growth in net average realization, due to better product-mix and price increases, we expect a ~5% decline in the top-line to ` 10,284cr

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(including Suzuki Power Train operations). On the operating front, we expect theEBITDA margin to improve significantly by ~410bp yoy to 11.4%, largely driven by favorable exchange rate movement. Consequently the net profit of the company isexpected to surge ~77% yoy to ` 750cr. At the CMP of ` 1,416, the stock is tradingat 11.7x FY2015 earnings. Currently, we have a Buy rating on the stock with a

target price of ` 1,822.

Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales March (` cr) (%) (` cr) ( ) (%) (x) (x) (x) (x) FY2014E 47,923 11.2 3,220 106.6 16.1 13.3 2.0 7.5 0.7FY2015E 55,002 10.9 3,667 121.4 15.8 11.7 1.8 6.6 0.6

GAIL (CMP: ` 330/ TP: - /Upside: -)

GAIL is expected to announce its 1QFY2014 results today. We expect thecompany s top-line to grow by 10.9% yoy to ` 12,296cr on account of highervolumes and operating margin is expected to contract by 582bp yoy to 13.3%. Onthe bottom-line front, we expect GAIL to report a decrease of 19.0% yoy to ` 918cr.We maintain our Neutral view on the stock.

Y/E Sales OPM PAT EPS ROE P/E P/BVEV/EBITDAEV/Sales

March ( ` cr) (%) ( cr) (` ) (%) (x) (x) (x) (x)

FY2014E 52,102 15.7 4,322 34.1 16.4 9.7 1.5 4.4 0.7

FY2015E 52,876 16.1 4,527 35.7 15.2 9.2 1.3 3.9 0.6

Sterlite Industries (CMP: ` 82 / TP: ` 100 / Upside: 22%)

Sterlite Industries is slated to announce its 1QFY2014 results today. The top-line isexpected to decline by 21.0% yoy to ` 8,372cr mainly due to temporary closure ofits Tuticorin copper smelter. Its bottom-line is expected to decrease by 15.5% yoy to ` 1,198cr due to decline in the top-line. We maintain our Buy rating on the stockwith a target price of ` 100.


March ( ` cr) (%) ( cr) (` ) (%) (x) (x) (x) (x)

FY2014E 44,493 22.4 5,875 17.5 10.9 4.7 0.5 2.0 0.5

FY2015E 45,599 23.9 6,570 19.5 11.1 4.2 0.4 1.7 0.4

ACC (CMP: ` 1,231/TP: ` 1,361/Upside:11%)

ACC is expected to declare its 2QCY2013 results today. We expect the top-line todecline by 1.5% yoy to ` 2,736cr. OPM is expected to decline by 783bp yoy to17.0%. Bottom-line is expected to decline by 35.4% yoy to ` 270cr. We maintainour Accumulate recommendation on the stock with a Target Price of ` 1,361.

Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/tonne*

Dec (` cr) (%) ( cr) (` ) (%) (x) (x) (x) (US $)

CY2013E 11,593 19.3 1,407 74.9 18.1 16.4 2.8 8.8 106

CY2014E 13,026 20.9 1,749 93.1 20.3 13.2 2.6 6.9 -

Note: Computed on TTM basis

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Thermax (CMP: ` 590/TP: -/Upside: - %)

For 1QFY2014, we expect Thermax to report a 4% yoy decline in top-line to ` 944cr, as weak order inflow since the past few quarters will drag down thecompany's revenue. The company's EBITDA margin is likely to be flat yoy at 9.8%.

Falling revenue and flat margins are expected to result in a yoy fall of 3.7% in thecompany's PAT to ` 65cr. We maintain our Neutral rating on the stock.


March ( ` cr) (%) ( cr) (` ) (%) (x) (x) (x) (x)

FY2014E 5,780 9.5 355 29.8 17.9 19.8 3.3 11.3 0.9

FY2015E 6,430 9.6 393 33.0 17.4 17.9 2.9 10.0 1.0

Indian Overseas Bank- (CMP: ` 47 / TP: - / Upside: -)

IOB is scheduled to announce its 1QFY2014 results today. We expect the bank to

report weak NII growth of 3.5% yoy to ` 1,375cr. Non-interest income is expectedto grow healthy on back of treasury gains at 31.9% yoy to ` 497cr. Operatingexpenses are expected to contain at 3.4% yoy to ` 887cr which would result inhealthy operating profit growth of 16.3% yoy at ` 985cr. Provisioning expenses areexpected to increase by 32.0% yoy, due to which net profit is expected to declineby 8.3% yoy at ` 214cr. At the CMP, the stock trades at valuations of 0.3x FY2015E

ABV. We maintain our Neutral recommendation on the stock.


March ( ` cr) (%) ( cr) (` ) (%) (x) (x) (x) (x)

FY2014E 8,028 2.4 1,159 12.5 133.3 0.4 9.1 3.8 0.4

FY2015E 9,204 2.6 1,816 19.7 150.8 0.6 13.0 2.4 0.3

FAG Bearings (CMP: ` 1,418/ TP: -/ Upside: -)

FAG Bearings is set to announce its 2QCY2013 results today. We expect thecompany to post a revenue decline of ~12% yoy to ` 332cr as the performance isexpected to be impacted by the slowdown in the automotive and industrial sectorswhich are the primary d rivers of the companys performance. On the operatingfront, we expect the company to post a ~430bp yoy contraction in margins to12.5% due to lower utilization levels and adverse currency movement. As a result,

net profit is expected to decline by ~38% yoy to `

29cr. At `

1,418, the stock istrading at 13x CY2014 earnings. Currently, we have a Neutral rating on the stock.

Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales Dec. (` cr) (%) ( cr) (` ) (%) (x) (x) (x) (x) CY2013E 1,525 14.5 147 88.4 15.5 16.0 2.3 9.4 1.3 CY2014E 1,742 15.7 182 109.5 16.5 13.0 2.0 7.3 1.1

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Quarterly Bloomberg Consensus Estimate

ACC (25/07/2013)Particulars ( ` cr) 2QCY13E 2QCY12 y-o-y (%) 1QCY13 q-o-q (%)

Net sales 2,800 2,778 0.8 2,911 (3.8)

EBITDA 435 688 (36.8) 492 (11.5)EBITDA margin (%) 15.5 24.8 16.9

Net profit 275 418 (34.2) 438 (37.2)

Gail (25/07/2013)Particulars ( ` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)

Net sales 12,439 11,089 12.2 12,409 0.2

EBITDA 1,682 1,923 (12.5) 1,468 14.6

EBITDA margin (%) 13.5 17.3 11.8

Net profit 953 1,134 (15.9) 618 54.2

ITC (25/07/2013)Particulars ( ` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)

Net sales 7,847 6,652 18.0 8,180 (4.1)

EBITDA 2,771 2,368 17.0 2,706 2.4

EBITDA margin (%) 35.3 35.6 33.1

Net profit 1,897 1,602 18.4 1,928 (1.6)

Maruti Suzuki (25/07/2013)Particulars ( ` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)

Net sales 10,331 10,529 (1.9) 14,718 (29.8)

EBITDA 1,200 786 52.6 2,399 (50.0)

EBITDA margin (%) 11.6 7.5 16.3

Net profit 644 424 52.0 1,240 (48.0)

Sterlite Industries Consolidated (25/07/2013)Particulars ( ` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)

Net sales 7,121 10,591 (32.8) 12,609 (43.5)

EBITDA 2,121 2,308 (8.1) 4,065 (47.8)

EBITDA margin (%) 29.8 21.8 32.2

Net profit 1,000 1,202 (16.8) 2,027 (50.7)

Zee Entertainment Consolidated (25/07/2013)Particulars ( ` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)

Net sales 979 843 16.1 934 4.8

EBITDA 258 233 10.7 242 6.6

EBITDA margin (%) 26.4 27.7 25.9

Net profit 190 158 20.1 180 5.8

Bank of India (26/07/2013)Particulars ( ` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)

Net profit 784 888 (11.6) 757 3.6

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Nestle India (26/07/2013)Particulars ( ` cr) 2QCY13E 2QCY12 y-o-y (%) 1QCY13 q-o-q (%)

Net sales 2,209 1,987 11.2 2,248 (1.8)

EBITDA 492 440 11.7 540 (8.9)

EBITDA margin (%) 22.3 22.2 24.0

Net profit 278 246 13.1 279 (0.3)

Punjab National Bank (26/07/2013)Particulars ( ` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)

Net profit 1,204 1,246 (3.4) 1,131 6.4

Wipro Consolidated (26/07/2013)Particulars ( ` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)

Net sales 9,940 10,620 (6.4) 9,613 3.4

EBITDA 2,000 1,973 1.4 1,974 1.3

EBITDA margin (%) 20.1 18.6 20.5Net profit 1,632 1,580 3.3 1,729 (5.6)

Hindustan Unilever (26/07/2013)Particulars ( ` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)

Net sales 7,000 6,250 12.0 6,367 9.9

EBITDA 1,080 977 10.5 972 11.1

EBITDA margin (%) 15.4 15.6 15.3

Net profit 870 729 19.4 787 10.5

Economic and Political News EGoM meeting on natural gas priority issue postponed again Interest rates in textile sector should be reduced: Textiles Minister

Corporate News Private hospital segment to reach $125bn by 2017 : Assocham Cairn India to invest Rs 16,000 cr in next 3 yrs TCS completes Alti acquisition GAIL rejects Tamil Nadu govt proposal for gas pipeline along national

highways Jindal Power ties up Rs 5,418 cr loans for Chhattisgarh plant

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

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Date Company

July 25, 2013 ITC, GAIL, Sterlite Inds, Maruti, ACC, Zee Entertainment, IOB, Thermax, FAG Bearings, MRF, TTK Healthcare

July 26, 2013 Wipro, HUL, Nestle, Punjab Natl.Bank, Bank of India, Tata Comm, CESC

July 27, 2013 Corporation Bank, Areva, Electrosteel Castings, Force Motors

July 28, 2013

July 29, 2013 UltraTech Cement, IDFC, Jaiprakash Asso., Colgate, Godrej Consumer, Indian Bank, Reliance Capital, AllahabadBank, Syndicate Bank, Vijaya Bank, Madras Cements, Subros, Vesuvius IndiaJuly 30, 2013 NTPC, Jindal Steel, Dr Reddy's, Reliance Power, Petronet LNG, Reliance Infra., Ipca labs, Indoco Remedies

July 31, 2013 Bharti Airtel, ICICI Bank, NHPC, HCL Tech, JSW Steel , United Spirits, Motherson Sumi, Andhra Bank, JagranPrakashan, Dishman Pharma, HSIL

August 01, 2013 J & K Bank, Power Grid Corpn, Idea Cellular, Mundra Port, Bank of Baroda, Canara Bank, Titan Inds., Adani Power,Rcom, Union Bank, Cummins India, GlaxoSmith Con, Glenmark Pharma. August 02, 2013 Siemens, Sun TV Network

August 03, 2013 Coal India, BHEL, Grasim Inds, Divi's Lab., Oriental Bank, PTC India

August 04, 2013

August 05, 2013 Tata Chemicals, LMW, GIPCL

August 06, 2013 Tata Power Co.

August 07, 2013 Ranbaxy, Lupin, GSK Pharma, Cadila Healthcare, Apollo Tyres, Nagarjuna Const.

August 08, 2013 Adani Enterp., Rural Elec.Corp., ITNL, Page Industries

August 09, 2013 Sun Pharma, ABB, TVS Motor

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Time Country Event Description Unit Period Bloomberg DataLast Reported Estimated

July 25, 2013 2:00PM UK GDP (YoY) % Change 2Q A 0.30 1.40

July 30, 2013 11:00AM India RBI Repo rate % Jul 30 7.25 7.25

11:00AM India RBI Cash Reserve ratio % Jul 30 4.00 4.0011:00AM India RBI Reverse Repo rate % Jul 30 6.25 6.25

7:30PM US Consumer Confidence S.A./ 1985=100 Jul 81.40 81.00

July 31, 2013 1:25PM Germany Unemployment change (000's) Thousands Jul (12.00) --

6:00PM US GDP Qoq (Annualised) % Change 2Q A 1.80 1.30

11:30PM US FOMC rate decision % Jul 31 0.25 0.25

August 1, 2013 6:30AM China PMI Manufacturing Value Jul 50.10 --

2:00PM UK PMI Manufacturing Value Jul 52.50 --

4:30PM UK BOE Announces rates % Ratio Aug 1 0.50 0.50

5:15PM Euro Zone ECB announces interest rates % Aug 1 0.50 0.50

August 2, 2013 6:00PM US Change in Nonfarm payrolls Thousands Jul 195.00 179.006:00PM US Unnemployment rate % Jul 7.60 7.50

August 6, 2013 2:00PM UK Industrial Production (YoY) % Change Jun (2.30) --

August 8, 2013 4:29PM China Exports YoY% % Change Jul (3.10) --

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

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


July 25, 2013

Market Outlook

7/27/2019 Market Outlook 25.07.2013

11/19



Macro watch

Exhibit 1: Quarterly GDP trends

Source: CSO, Angel Research

Exhibit 2: IIP trends

Source: MOSPI, Angel Research

Exhibit 3: Monthly WPI inflation trends

Source: MOSPI, Angel Research

Exhibit 4: Manufacturing and services PMI

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

Exhibit 5: Exports and imports growth trends


Exhibit 6: Key policy rates

Source: RBI, Angel Research

9.3

7.7

11.4

9.58.6

9.29.9

7.56.5

6.05.1 5.4 5.2 4.7 4.8

3.04.05.06.07.08.09.0

10.011.012.0

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

4 Q F Y 1 2

1 Q F Y 1 3

2 Q F Y 1 3

3 Q F Y 1 3

4 Q F Y 1 3

(%)

(2.0)

(0.1)

2.0

(0.7)

8.4

(1.0) (0.6)

2.5

0.6

3.41.9

(1.6)(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

J u n - 1

2

J u l - 1 2

A u g - 1

2

S e p - 1

2

O c t - 1

2

N o v -

1 2

D e c -

1 2

J a n - 1

3

F e

b - 1

3

M a r -

1 3

A p r -

1 3

M a y -

1 3

(%)

8.0 8.17.3 7.2 7.3 7.3 7.3

5.74.8 4.7 4.9

0.01.02.0

3.04.05.06.07.08.09.0

A u g - 1

2

S e p - 1

2

O c t - 1

2

N o v -

1 2

D e c -

1 2

J a n - 1

3

F e

b - 1

3

M a r -

1 3

A p r -

1 3

M a y -

1 3

J u n - 1

3

(%)

48.0

50.0

52.0

54.0

56.0

58.0

M a r -

1 2

A p r -

1 2

M a y -

1 2

J u n - 1

2

J u l - 1 2

A u g - 1

2

S e p - 1

2

O c t - 1

2

N o v -

1 2

D e c -

1 2

J a n - 1

3

F e

b - 1

3

M a r -

1 3

A p r -

1 3

M a y -

1 3

Mfg. PMI Services PMI

(15.0)

0.0

15.0

J u l - 1 2

A u g - 1

2

S e p - 1

2

O c t - 1

2

N o v -

1 2

D e c -

1 2

J a n - 1

3

F e

b - 1

3

M a r -

1 3

A p r -

1 3

M a y -

1 3

J u n - 1

3

Exports yoy growth Im ports yoy growth(%)

3.00

4.00

5.00

6.00

7.00

8.00

9.00

A u g - 1

2

S e p - 1

2

O c t - 1

2

N o v -

1 2

D e c -

1 2

J a n - 1

3

F e

b - 1

3

M a r -

1 3

A p r -

1 3

M a y -

1 3

J u n - 1

3

J u l - 1 3

Repo rate Reverse Repo rate CRR (%)

7/27/2019 Market Outlook 25.07.2013

12/19

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

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

Agri / Agri Chemical

Rallis Neutral 152 - 2,949 1,674 1,923 13.7 13.7 6.8 7.6 22.3 20.0 4.2 3.7 20.0 19.6 1.9 1.7

United Phosphorus Buy 143 232 6,307 10,298 11,310 16.5 16.5 20.5 23.2 7.0 6.1 1.2 1.0 18.0 17.4 0.6 0.5

Auto & Auto Ancillary

Amara Raja Batteries Accumulate 264 285 4,517 3,418 3,892 14.5 14.5 18.5 20.4 14.3 13.0 3.4 2.8 26.6 23.8 1.3 1.1

Apollo Tyres Neutral 66 - 3,324 13,852 15,487 11.4 11.5 12.8 14.9 5.1 4.4 0.8 0.7 17.5 17.3 0.4 0.4 Ashok Leyland Buy 15 22 3,858 13,450 15,853 6.5 8.5 0.4 1.9 37.9 7.8 1.3 1.1 2.3 11.0 0.4 0.3

Automotive Axle# Neutral 206 - 311 834 965 9.3 10.6 17.3 27.1 11.9 7.6 1.1 1.0 9.5 14.0 0.4 0.4Bajaj Auto Neutral 2,003 - 57,946 21,696 25,239 19.2 19.3 119.3 140.2 16.8 14.3 5.9 4.7 38.9 36.6 2.3 1.9Bharat Forge Neutral 213 - 4,950 6,198 6,793 14.6 14.9 14.5 17.3 14.6 12.3 1.9 1.7 13.6 14.7 0.9 0.8

Bosch India* Accumulate 8,573 9,213 26,919 9,821 11,394 17.0 17.3 373.5 438.7 23.0 19.5 4.1 3.5 18.0 17.9 2.4 2.0CEAT Buy 115 170 395 5,325 5,974 8.4 8.3 40.8 48.5 2.8 2.4 0.5 0.4 17.3 17.6 0.2 0.2

Exide Industries Buy 128 148 10,838 6,899 7,873 14.7 14.7 7.9 9.0 16.1 14.1 2.8 2.4 18.3 18.0 1.3 1.1FAG Bearings* Neutral 1,418 - 2,356 1,525 1,742 14.5 15.7 88.4 109.5 16.0 13.0 2.3 2.0 15.5 16.5 1.4 1.1

Hero Motocorp Neutral 1,758 - 35,100 25,298 27,665 14.1 13.7 110.3 140.0 15.9 12.6 5.8 4.6 39.9 40.7 1.2 1.0JK Tyre Buy 103 154 424 7,972 8,754 7.1 7.1 37.5 44.0 2.8 2.4 0.4 0.4 16.4 16.6 0.3 0.3Mahindra and Mahindra Buy 894 1,103 55,033 45,254 51,197 11.4 11.7 61.2 70.2 14.6 12.7 3.1 2.6 22.7 21.9 1.0 0.8

Maruti Buy 1,416 1,822 42,770 47,923 55,002 11.2 10.9 106.6 121.4 13.3 11.7 2.0 1.7 16.1 15.8 0.7 0.6Motherson Sumi Accumulate 210 222 12,328 28,442 31,493 7.5 7.8 12.5 14.8 16.8 14.2 4.1 3.3 27.5 25.8 0.6 0.5

Subros Buy 21 27 124 1,426 1,624 10.0 9.9 4.9 6.8 4.2 3.0 0.4 0.4 10.0 12.7 0.4 0.3Tata Motors Buy 298 347 80,149 215,016 237,404 13.3 13.6 36.2 41.5 8.2 7.2 1.8 1.5 24.6 23.2 0.4 0.4

TVS Motor Accumulate 32 35 1,501 7,715 8,584 6.0 6.1 5.0 5.8 6.4 5.5 1.1 0.9 18.1 18.5 0.1 0.1

Capital Goods

ABB* Sell 563 461 11,936 8,073 9,052 5.5 6.9 11.5 16.9 48.9 33.2 4.5 4.3 9.3 13.1 1.4 1.3BGR Energy Buy 111 140 800 3,756 4,569 11.4 9.7 21.7 24.1 5.1 4.6 0.6 0.6 22.3 20.3 0.5 0.5BHEL Neutral 163 - 39,896 44,054 39,326 16.8 15.1 20.6 16.1 7.9 10.1 1.7 1.6 23.5 16.1 0.8 0.8

Blue Star Buy 155 230 1,397 2,896 3,087 5.6 6.2 9.3 11.7 16.7 13.2 2.8 2.4 17.6 19.2 0.5 0.5Crompton Greaves Buy 88 117 5,655 13,446 15,272 6.7 7.6 6.6 8.9 13.3 9.9 1.5 1.3 11.4 14.0 0.5 0.5Jyoti Structures Neutral 20 - 163 3,360 3,597 9.7 9.8 7.3 10.2 2.7 2.0 0.6 0.5 8.8 11.4 0.3 0.3

KEC International Buy 31 49 801 7,709 8,399 6.7 7.2 6.1 8.5 5.1 3.7 0.7 0.6 20.2 23.0 0.3 0.3Thermax Neutral 590 - 7,034 5,780 6,430 9.5 9.6 29.8 33.0 19.8 17.9 3.3 2.9 17.9 17.4 1.0 0.9

Cement

ACC Accumulate 1,231 1,361 23,111 11,820 13,254 19.3 20.9 74.9 93.1 16.4 13.2 2.9 2.6 18.1 20.3 1.7 1.4


Market Outlook

Stock Watch

July 25, 2013

7/27/2019 Market Outlook 25.07.2013

13/19



Cement

Ambuja Cements Neutral 191 - 29,513 10,171 11,762 23.5 24.6 10.2 12.2 18.7 15.7 3.1 2.8 17.1 18.7 2.4 2.0India Cements Neutral 53 - 1,640 4,929 5,434 17.4 17.1 8.9 10.9 6.0 4.9 0.5 0.4 7.7 9.1 0.7 0.6

J K Lakshmi Cement Buy 74 143 874 2,247 2,742 21.0 23.1 17.8 21.8 4.2 3.4 0.6 0.5 15.5 16.4 0.3 0.8Madras Cements Neutral 189 - 4,499 4,234 4,788 23.9 24.0 18.5 22.8 10.2 8.3 1.6 1.4 17.2 18.2 1.4 1.1

Shree Cement^ Neutral 4,427 - 15,422 6,607 7,520 27.5 26.7 322.8 374.3 13.7 11.8 3.4 2.7 27.8 25.6 1.7 1.3UltraTech Cement Neutral 1,918 - 52,582 21,947 25,049 23.8 23.8 106.1 119.8 18.1 16.0 3.0 2.6 17.7 17.3 2.5 2.1

Construction Ashoka Buildcon Buy 51 84 807 1,928 2,234 21.0 21.5 6.0 7.4 8.5 6.9 0.8 0.7 10.5 10.8 1.8 1.8Consolidated Co Neutral 8 - 155 1,715 1,824 2.4 6.2 (2.9) (0.4) (2.9) (23.3) 0.3 0.3 0.5 0.5

IRB Infra Buy 90 157 3,003 3,997 4,312 45.5 46.4 15.7 16.6 5.8 5.4 0.8 0.8 15.2 14.5 3.2 3.4ITNL Buy 141 230 2,737 7,444 8,041 27.4 28.9 29.8 32.1 4.7 4.4 0.7 0.6 14.9 14.2 2.5 2.5IVRCL Infra Buy 14 29 417 5,673 5,892 8.1 8.4 1.4 1.8 9.4 7.4 0.2 0.2 2.0 2.6 0.5 0.5

Jaiprakash Asso. Buy 47 90 10,474 14,850 15,631 24.9 25.1 2.5 2.9 18.7 16.6 0.8 0.7 4.2 4.7 2.5 2.5Larsen & Toubro Buy 867 1,128 80,192 68,946 78,040 10.0 10.0 49.0 55.2 17.7 15.7 2.5 2.3 14.9 15.3 1.3 1.2

Nagarjuna Const. Buy 25 42 639 6,167 6,945 8.0 8.2 2.7 3.6 9.3 6.9 0.3 0.2 2.7 3.6 0.5 0.4Punj Lloyd Neutral 30 - 1,000 12,954 14,740 9.9 9.9 0.5 0.9 59.3 32.3 0.3 0.3 0.6 1.1 0.5 0.5

Sadbhav Engg. Buy 85 139 1,284 2,462 2,731 10.6 10.6 5.9 6.7 14.5 12.8 1.4 1.3 10.2 10.5 0.8 0.8Simplex Infra Buy 72 131 354 6,308 7,033 9.5 9.6 11.9 18.7 6.0 3.8 0.3 0.3 4.5 6.7 0.5 0.5

Unity Infra Buy 24 41 176 2,146 2,339 13.7 13.8 11.0 11.5 2.2 2.1 0.2 0.2 9.3 9.0 0.6 0.6

Financials

Allahabad Bank Buy 81 95 4,040 6,705 7,535 2.5 2.5 27.6 33.2 2.9 2.4 0.4 0.4 12.5 13.6 - -

Andhra Bank Neutral 77 - 4,309 5,180 5,815 2.7 2.7 19.0 22.9 4.1 3.4 0.5 0.5 12.0 13.2 - -

Axis Bank Buy 1,123 1,441 52,647 19,280 22,886 3.3 3.3 130.7 157.1 8.6 7.2 1.4 1.2 17.3 18.1 - -Bank of Baroda Accumulate 590 642 24,873 16,287 18,707 2.2 2.3 120.6 144.6 4.9 4.1 0.7 0.6 15.0 16.0 - -

Bank of India Buy 197 236 11,730 14,459 16,176 2.3 2.2 55.2 68.2 3.6 2.9 0.5 0.4 13.7 15.1 - -Bank of Maharashtra A ccumulate 48 54 3,175 4,291 4,724 3.0 3.0 12.1 12.9 4.0 3.7 0.6 0.5 16.2 15.3 - -

Canara Bank Neutral 298 - 13,179 12,045 13,495 2.1 2.2 76.7 86.4 3.9 3.4 0.6 0.5 14.1 14.2 - -Central Bank Neutral 62 - 6,482 8,406 9,546 2.5 2.5 12.6 18.7 4.9 3.3 0.6 0.5 10.6 14.3 - -

Corporation Bank Buy 313 360 4,782 5,554 6,156 2.0 2.0 94.9 104.9 3.3 3.0 0.5 0.4 14.3 14.2 - -Dena Bank Neutral 64 - 2,233 3,255 3,623 2.3 2.4 22.0 24.9 2.9 2.6 0.4 0.4 14.7 14.7 - -

Federal Bank Neutral 349 - 5,971 2,802 3,275 2.9 2.9 49.8 56.6 7.0 6.2 0.9 0.8 12.7 13.1 - -


Market Outlook

Stock Watch

July 25, 2013

7/27/2019 Market Outlook 25.07.2013

14/19



Financials

HDFC Accumulate 803 867 124,773 8,679 10,350 3.6 3.6 37.5 44.7 21.4 18.0 4.5 4.0 30.1 30.7 - -HDFC Bank Accumulate 660 745 157,692 27,392 33,264 4.6 4.6 36.3 45.1 18.2 14.6 3.7 3.1 21.9 22.8 - -

ICICI Bank Buy 953 1,160 109,976 26,119 30,474 3.1 3.2 86.2 99.5 11.1 9.6 1.5 1.4 15.7 16.2 - -IDBI Bank Neutral 71 - 9,483 9,518 10,468 2.0 2.0 15.5 22.1 4.6 3.2 0.5 0.4 10.2 13.3 - -

Indian Bank Accumulate 104 113 4,448 6,077 6,845 2.9 3.0 35.2 41.0 2.9 2.5 0.4 0.4 14.1 14.8 - -IOB Neutral 47 - 4,371 8,028 9,204 2.4 2.6 12.5 19.7 3.8 2.4 0.4 0.3 9.1 13.1 - -

J & K Bank Neutral 1,211 - 5,872 3,101 3,427 3.6 3.6 215.5 210.3 5.6 5.8 1.0 0.9 19.9 16.9 - -LIC Housing Finance Neutral 203 - 10,267 2,180 2,732 2.4 2.5 26.3 32.1 7.7 6.3 1.4 1.2 19.0 19.9 - -Oriental Bank Buy 164 203 4,794 6,790 7,676 2.6 2.7 55.7 62.3 3.0 2.6 0.4 0.3 12.8 12.9 - -

Punjab Natl.Bank Accumulate 631 718 22,315 20,914 23,879 3.3 3.4 152.4 176.2 4.1 3.6 0.7 0.6 16.2 16.5 - -South Ind.Bank Neutral 22 - 2,962 1,800 2,023 2.7 2.7 3.7 4.2 6.0 5.3 0.9 0.8 16.2 16.2 - -

St Bk of India Buy 1,803 2,077 123,324 66,417 76,734 3.0 3.0 227.4 284.8 7.9 6.3 1.2 1.0 15.4 17.1 - -Syndicate Bank Accumulate 107 121 6,462 7,125 8,188 2.6 2.6 27.4 27.9 3.9 3.9 0.6 0.5 16.2 14.6 - -

UCO Bank Neutral 65 - 4,922 6,545 6,859 2.7 2.6 14.8 15.7 4.4 4.2 0.8 0.7 14.4 13.6 - -Union Bank Buy 147 178 8,746 11,101 12,543 2.6 2.6 39.3 47.4 3.7 3.1 0.5 0.5 14.1 15.2 - -United Bank Neutral 45 - 1,669 3,386 3,884 2.3 2.5 12.4 20.0 3.6 2.2 0.4 0.3 10.0 14.7 - -

Vijaya Bank Accumulate 43 47 2,133 2,714 3,046 1.9 2.0 9.2 10.8 4.7 4.0 0.5 0.5 10.7 11.5 - -Yes Bank Neutral 383 - 13,790 4,451 5,526 2.8 2.8 43.0 49.7 8.9 7.7 1.9 1.6 23.9 22.8 - -

FMCG

Asian Paints Neutral 4,989 - 47,854 12,332 14,524 16.3 16.1 138.9 160.4 35.9 31.1 11.4 9.1 35.2 32.5 3.8 3.2Britannia Neutral 726 - 8,690 6,417 7,502 6.1 6.3 21.3 25.5 34.1 28.5 11.1 8.9 35.7 34.6 1.3 1.1

Colgate Neutral 1,490 - 20,264 3,588 4,130 20.5 20.9 44.2 51.8 33.7 28.8 32.9 23.9 108.6 96.2 5.5 4.7

Dabur India Neutral 175 - 30,505 7,183 8,340 16.8 16.8 5.4 6.3 32.6 27.8 12.7 9.9 41.5 40.1 4.2 3.6GlaxoSmith Con* Neutral 5,049 - 21,234 3,617 4,259 16.1 16.4 122.2 148.7 41.3 34.0 12.9 10.3 34.1 33.7 5.4 4.5Godrej Consumer Neutral 892 - 30,366 7,801 9,017 16.2 15.9 25.1 29.7 35.5 30.1 7.7 6.4 24.9 24.2 4.0 3.4

HUL Neutral 709 - 153,373 29,167 33,164 13.6 13.7 17.1 18.4 41.5 38.6 39.9 28.9 113.4 87.0 5.1 4.5ITC Neutral 376 - 297,339 34,294 39,991 36.8 37.0 11.3 13.3 33.4 28.2 11.0 8.9 36.1 34.9 8.3 7.1

Marico Neutral 218 - 14,035 5,273 6,044 14.8 14.9 7.3 8.7 30.0 25.1 5.9 4.8 21.4 21.0 2.7 2.3Nestle* Neutral 5,614 - 54,132 9,447 10,968 22.1 22.3 127.5 154.1 44.0 36.4 22.0 15.9 57.7 50.7 5.8 4.9Tata Global Neutral 154 - 9,496 8,069 8,957 9.8 9.7 7.8 8.6 19.6 17.9 2.4 2.3 9.5 9.7 1.2 1.0


Market Outlook

Stock Watch

July 25, 2013

7/27/2019 Market Outlook 25.07.2013

15/19



IT

HCL Tech^ Neutral 899 - 62,676 29,424 32,837 22.6 22.0 59.5 63.3 15.1 14.2 3.7 3.0 24.6 21.7 2.0 1.7Hexaware* Neutral 117 - 3,503 2,213 2,479 21.5 20.5 12.1 12.9 9.7 9.1 2.4 2.1 25.4 23.5 1.4 1.2

Infosys Neutral 2,908 - 166,965 47,001 51,196 26.2 26.4 171.3 189.4 17.0 15.4 3.5 3.0 20.4 19.3 2.9 2.5Infotech Enterprises Neutral 182 - 2,036 2,052 2,263 17.2 17.6 20.7 22.5 8.8 8.1 1.3 1.1 14.9 14.0 0.6 0.5

KPIT Cummins Accumulate 132 144 2,549 2,614 2,923 17.2 16.8 13.2 14.4 10.0 9.2 1.8 1.5 18.5 16.7 0.9 0.8Mindtree Sell 963 135 4,003 8,590 9,324 20.9 20.6 10.9 11.7 88.6 82.6 20.9 16.7 23.7 20.3 0.1 (0.1)

Mphasis& Buy 404 1,050 8,494 2,768 3,006 19.7 19.9 103.1 105.3 3.9 3.8 1.0 0.8 24.8 20.3 2.8 2.4NIIT Buy 17 400 282 6,372 6,852 18.0 18.2 38.0 43.5 0.5 0.4 0.1 0.1 14.3 14.2 (0.5) (0.5)Persistent Sell 543 30 2,171 1,144 1,267 9.0 9.1 4.3 5.4 126.3 100.9 13.0 12.1 10.3 12.0 1.7 1.5

TCS Sell 1,783 595 348,894 1,505 1,677 25.9 26.2 53.6 59.7 33.3 29.9 5.9 5.0 17.7 16.7 231.5 207.5Tech Mahindra Accumulate 1,206 1,305 28,017 77,480 88,131 29.4 29.1 86.0 95.1 14.0 12.7 4.3 3.5 30.9 27.8 0.1 -

Wipro Buy 392 1,250 96,586 8,102 8,709 19.7 19.2 107.5 117.0 3.7 3.4 0.8 0.6 21.2 18.9 11.9 11.0

Media

D B Corp Accumulate 271 302 4,962 1,783 1,968 25.2 26.8 14.6 17.2 18.6 15.7 4.8 4.1 23.9 24.2 2.7 2.4

HT Media Buy 98 117 2,309 2,205 2,380 15.1 15.6 8.3 9.3 11.8 10.6 1.5 1.3 11.6 11.6 0.7 0.5Jagran Prakashan Buy 91 107 3,014 1,664 1,825 20.9 23.0 6.4 7.8 14.1 11.7 2.9 2.6 21.0 23.1 1.9 1.7

PVR Neutral 329 - 1,303 1,359 1,540 17.3 17.4 17.2 21.6 19.1 15.3 1.9 1.8 10.3 12.0 1.4 1.2Sun TV Network Neutral 383 - 15,074 2,287 2,551 69.7 70.5 20.0 23.3 19.1 16.4 4.7 4.1 26.4 27.3 6.2 5.5

Metals & Mining

Bhushan Steel Neutral 461 - 10,438 13,794 17,088 30.9 33.5 49.3 66.6 9.4 6.9 1.0 0.9 11.3 13.5 2.4 1.9Coal India Buy 298 345 188,512 72,174 76,311 33.3 28.4 28.4 30.9 10.5 9.7 2.9 2.5 37.6 36.2 1.8 1.6

Electrosteel Castings Buy 12 18 399 1,976 2,017 11.8 12.7 1.3 2.6 9.7 4.7 0.1 0.1 2.6 5.2 0.5 0.1

GMDC Buy 100 155 3,178 1,920 2,239 53.2 52.9 21.6 25.0 4.6 4.0 1.1 0.9 25.1 23.8 1.2 0.8Hind. Zinc Buy 103 145 43,563 12,358 13,659 51.4 51.6 16.0 17.6 6.4 5.9 1.2 1.0 19.4 18.4 1.3 0.8

Hindalco Neutral 103 - 19,768 89,352 93,672 8.8 9.2 13.4 15.0 7.7 6.9 0.5 0.5 7.3 7.6 0.6 0.5JSW Steel Neutral 557 - 13,453 47,613 48,385 17.4 18.8 81.8 109.6 6.8 5.1 0.7 0.6 11.1 13.4 0.6 0.5

MOIL Buy 197 248 3,312 1,010 1,046 46.5 47.6 26.8 28.8 7.4 6.8 1.1 1.0 15.4 14.7 0.9 0.6Monnet Ispat Buy 114 193 727 2,326 2,709 21.4 23.1 33.3 43.1 3.4 2.7 0.3 0.2 8.3 9.9 1.3 1.0

Nalco Neutral 30 - 7,745 7,656 7,988 13.1 13.5 2.6 2.6 11.8 11.5 0.6 0.6 5.5 5.5 0.5 0.5NMDC Buy 108 140 42,839 10,610 11,400 66.3 64.2 15.6 16.1 7.0 6.7 1.4 1.3 21.3 19.9 1.9 1.8

SAIL Neutral 43 - 17,759 44,060 54,786 9.4 11.5 5.2 7.2 8.2 6.0 0.4 0.4 5.2 6.8 0.7 0.6


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Metals & Mining

Sesa Goa Buy 143 166 12,441 3,742 4,426 32.9 32.8 30.0 29.8 4.8 4.8 0.6 0.6 14.3 12.5 4.1 3.4Sterlite Inds Buy 82 100 27,557 44,462 45,568 23.2 24.7 18.1 20.2 4.5 4.1 0.5 0.4 11.3 11.4 0.6 0.5

Tata Steel Buy 230 378 22,323 140,917 151,537 9.7 10.8 30.9 47.6 7.4 4.8 0.7 0.6 9.6 13.4 0.5 0.5Sarda Buy 94 153 338 1,494 1,568 19.1 20.3 31.3 36.5 3.0 2.6 0.3 0.3 11.8 12.4 0.6 0.5

Prakash Industries Buy 31 40 422 2,615 2,776 12.1 12.0 9.8 10.4 3.2 3.0 0.2 0.2 6.5 6.5 0.4 0.4Godawari Power andIspat Buy 73 102 239 2,344 2,509 14.9 15.4 38.7 47.0 1.9 1.6 0.2 0.2 12.3 12.9 0.5 0.4

Oil & GasCairn India Accumulate 308 345 58,809 16,482 16,228 69.4 53.3 53.3 49.6 5.8 6.2 0.9 0.8 16.5 13.6 2.2 1.9GAIL Neutral 330 - 41,910 52,102 52,876 15.7 16.1 34.1 35.7 9.7 9.3 1.5 1.3 16.4 15.3 0.3 0.2

ONGC Buy 309 387 263,980 170,063 198,461 36.3 38.3 34.7 41.9 8.9 7.4 1.5 1.3 18.3 19.5 1.3 0.9Reliance Industries Neutral 909 - 293,437 397,546 421,695 9.4 8.6 75.0 76.4 12.1 11.9 1.3 1.2 12.4 11.4 0.7 0.6

Gujarat Gas* Neutral 203 - 2,600 3,707 3,850 11.7 12.4 23.7 25.7 8.6 7.9 2.4 2.1 29.6 28.2 0.6 0.5Indraprastha Gas Neutral 283 - 3,963 3,700 4,218 23.4 22.8 26.7 30.4 10.6 9.3 2.2 1.9 22.7 21.8 1.1 0.9Petronet LNG Buy 123 167 9,236 40,356 40,872 5.8 6.4 15.0 16.7 8.2 7.4 1.7 1.5 23.0 21.5 0.3 0.3Gujarat State PetronetLtd. Neutral 53 - 3,005 1,171 1,287 91.9 91.9 10.1 11.3 5.3 4.7 0.9 0.7 17.3 16.8 - -

Pharmaceuticals

Alembic Pharma Neutral 154 - 2,904 1,736 2,008 17.1 18.9 10.7 13.9 14.4 11.1 4.5 3.4 35.0 34.7 1.7 1.5 Aurobindo Pharma Buy 173 271 5,026 6,641 7,637 15.9 15.9 17.3 20.6 10.0 8.4 1.6 1.3 19.5 18.9 1.2 1.0

Aventis* Neutral 2,369 - 5,456 1,682 1,917 16.6 16.6 92.4 99.1 25.6 23.9 3.6 3.6 15.7 14.8 2.9 2.3Cadila Healthcare Buy 736 929 15,076 7,280 8,640 15.5 15.7 38.3 46.5 19.2 15.8 4.1 3.4 23.5 23.5 2.4 2.0Cipla Accumulate 415 477 33,349 9,274 10,796 23.1 23.1 21.0 23.8 19.8 17.5 3.2 2.7 17.2 16.8 3.3 2.8

Dr Reddy's Accumulate 2,346 2,535 39,889 13,377 15,350 20.4 20.1 112.3 126.8 20.9 18.5 4.5 3.7 23.5 21.8 3.1 2.7Dishman Pharma Buy 56 168 454 1,394 1,534 22.5 22.4 15.0 16.8 3.8 3.4 0.4 0.4 11.0 11.2 1.0 0.8

GSK Pharma* Neutral 2,450 - 20,756 2,854 3,145 28.6 28.6 76.6 83.3 32.0 29.4 9.6 8.7 31.1 31.0 6.4 5.7Indoco Remedies Buy 64 78 587 760 922 15.3 15.3 6.1 7.8 10.4 8.2 1.3 1.1 12.9 14.7 1.0 0.8

Ipca labs Accumulate 630 665 7,942 3,243 3,826 20.5 21.5 36.0 44.4 17.5 14.2 4.1 3.2 26.0 25.4 2.6 2.2Lupin Neutral 871 - 39,002 11,641 13,933 21.3 21.3 34.8 41.8 25.0 20.8 5.9 4.6 26.2 24.8 3.4 2.8

Ranbaxy* Buy 314 384 13,288 11,400 12,060 10.5 12.5 17.5 22.5 18.0 14.0 2.9 2.5 17.0 19.1 1.1 1.0Sun Pharma Neutral 1,128 - 116,592 13,509 15,846 41.0 41.0 33.0 39.8 34.2 28.3 6.9 5.7 22.0 22.0 8.1 6.7

Power

GIPCL Buy 64 78 974 1,444 1,482 33.4 33.0 13.7 14.8 4.7 4.4 0.6 0.5 12.3 12.0 0.8 0.5NTPC Buy 141 163 116,426 76,734 86,680 24.5 24.3 13.4 14.5 10.5 9.7 1.3 1.2 12.8 12.7 2.2 2.1


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Real Estate

DLF Buy 175 236 31,102 8,293 9,622 36.5 36.1 5.7 6.7 30.6 25.9 1.1 1.1 3.7 4.1 5.9 4.9MLIFE Neutral 462 - 1,886 888 1,002 30.6 30.6 38.8 43.4 11.9 10.6 1.3 1.2 11.2 11.4 2.7 2.4

Telecom

Bharti Airtel Neutral 337 - 134,832 85,489 94,229 31.9 31.9 10.2 14.6 33.0 23.1 2.4 2.2 7.2 9.4 2.3 2.0Idea Cellular Neutral 154 - 50,894 25,640 28,459 26.9 27.2 4.0 4.9 38.3 31.0 3.2 2.9 8.4 9.4 2.4 2.1

Rcom Neutral 138 - 28,463 22,751 24,628 30.9 31.3 3.4 5.3 40.2 26.2 0.8 0.8 2.1 3.1 2.8 2.5

Others Abbott India* Buy 1,425 1,659 3,029 1,863 2,081 11.8 12.4 71.2 83.0 20.0 17.2 4.0 3.4 21.6 21.5 1.4 1.1

Bajaj Electricals Buy 178 237 1,780 3,885 4,472 5.4 7.2 11.0 19.7 16.3 9.0 2.2 1.8 13.5 20.3 0.5 0.4Cera Sanitaryware Buy 512 613 648 631 797 14.5 13.7 42.6 51.1 12.0 10.0 2.9 2.3 26.5 25.3 1.0 0.8

Cravatex Buy 254 459 66 248 284 6.5 7.3 27.2 38.2 9.3 6.6 1.5 1.2 15.7 18.5 0.4 0.4Finolex Cables Accumulate 60 68 913 2,563 2,899 9.8 9.8 10.1 11.3 5.9 5.3 0.9 0.7 14.3 13.8 0.3 0.2

Force Motors Buy 238 437 310 2,304 2,649 3.1 3.6 28.0 43.7 8.5 5.5 0.3 0.3 3.1 4.7 0.1 0.1Goodyear India* Accumulate 314 345 725 1,458 1,542 8.3 9.0 32.3 37.0 9.7 8.5 1.8 1.5 19.5 19.3 0.3 0.3Hitachi Buy 119 177 323 1,053 1,169 6.3 7.1 13.8 17.7 8.6 6.7 1.2 1.0 15.0 16.7 0.3 0.3

Honeywell Automation* Neutral 2,446 - 2,163 1,842 2,131 7.7 7.8 112.4 132.4 21.8 18.5 2.7 2.4 13.3 13.8 1.1 0.9IFB Agro Buy 135 198 122 495 651 12.7 12.9 29.3 39.5 4.6 3.4 0.7 0.6 15.4 17.6 0.4 0.3

ITD Cementation Buy 165 234 190 1,430 1,573 11.1 11.0 19.1 26.9 8.7 6.1 0.5 0.4 5.4 7.1 0.5 0.5Jyothy Laboratories Accumulate 177 199 2,946 1,220 1,476 13.3 13.6 5.5 9.0 32.2 19.6 3.7 3.3 12.1 17.7 2.7 2.2

MRF Neutral 13,815 - 5,859 11,799 12,587 14.1 13.5 1,792.4 1,802.0 7.7 7.7 1.6 1.3 23.5 19.2 0.6 0.5Page Industries Neutral 4,511 - 5,032 1,057 1,282 19.4 19.6 124.8 153.7 36.2 29.4 17.9 13.2 56.3 51.8 4.9 4.0

Relaxo Footwears Accumulate 705 791 846 1,146 1,333 10.9 11.4 45.9 60.9 15.4 11.6 3.2 2.6 23.0 24.6 0.9 0.8

Siyaram Silk Mills Buy 232 343 218 1,158 1,322 11.9 11.9 72.9 85.7 3.2 2.7 0.6 0.5 19.9 19.6 0.4 0.4Styrolution ABS India* Buy 410 617 722 1,068 1,223 9.6 9.6 38.1 44.1 10.8 9.3 1.5 1.3 14.5 14.7 0.7 0.6

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 1.3Tata Sponge Iron Buy 263 371 404 814 849 17.0 17.6 64.6 69.2 4.1 3.8 0.6 0.5 14.5 13.8 0.1 (0.1)

TTK Healthcare Accumulate 598 686 465 435 516 6.2 7.1 24.3 33.3 24.6 18.0 4.1 3.5 17.6 20.8 0.9 0.7Tree House Neutral 295 - 1,061 153 194 53.0 52.8 12.4 15.6 23.8 18.9 2.8 2.5 11.8 13.1 7.1 5.5

TVS Srichakra Buy 171 230 131 1,591 1,720 6.1 6.4 24.5 38.3 7.0 4.5 0.7 0.7 10.9 15.9 0.3 0.3United Spirits Neutral 2,708 - 39,350 12,294 14,162 12.0 12.0 42.1 67.7 64.3 40.0 4.5 4.1 9.1 10.7 3.5 3.0

Vesuvius India* Buy 376 439 763 600 638 20.1 19.4 35.7 36.6 10.5 10.3 1.9 1.6 19.4 17.1 1.1 0.9


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Others

HSIL Buy 87 117 575 2,042 2,363 14.6 14.8 12.3 16.5 7.1 5.3 0.5 0.5 7.6 9.4 0.7 0.7

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on July 24, 2013


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

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Market Outlook 25.07.2013