Market Outlook 280812

7/31/2019 Market Outlook 280812

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2/13

www.angelbroking.com

Market OutlookAugust 28, 2012

Supreme Court extends 2G auction deadline till January 11,

2013

The Supreme Court has extended the deadline for a fresh auction of the 2G

spectrum licenses till January 13, 2013. The court has said that if the orders are

not complied with, the court will issue contempt proceedings against the officers

responsible. The court has also ruled that the existing license owners can continue

to operate till January 18, 2013. The court had earlier ordered the government to

conduct the auction by end-August and had said the affected companies can

operate on their existing permits until September 7, 2012. The government later

sought time until November 12, 2012 to begin the auction and 40 days from the

completion of auction to allocate frequencies. It estimates the auction to take about

two months to be completed. We maintain our Neutral view on the overall telecom

sector

L&T bags orders worth `2,051cr

Larsen & Toubro (L&T) has bagged orders worth `2,051cr comprising of domestic

and international orders. A major order worth `1,302cr has been bagged from

Petroleum Development Oman LLC, involving engineering, procurement &

construction (EPC) of the Saih Rawl Depletion Compression phase 2 (SRDC2)

project. The order was won against stiff competition from nine international EPC

bidders. The SRDC2 involves installation of 76MW of gas compression capacity

with 4 trains, and modification of the condensate handling system at CPP. This will

enable the Saih Rawl Main field to produce Maximum Annual Daily Load (MADL)

of 30 MMSCMD gas. Further, L&T has secured an offshore contract valued at

`749cr from the ONGC for total EPCI engineering, procurement, construction

and installation of four wellhead platforms.

At the current market price of `1,398, the stock is trading at a PE of 14.0x

FY2014E earnings, after adjusting for investments, which is below the historical

trading multiple for L&T. We have used the sum-of-the-parts (SOTP) methodology

to value the company to capture all its business initiatives and investments/stakes

in the different businesses. Ascribing separate values to its parent business on a

P/E basis and investments in subsidiaries on P/E, P/BV and mcap basis, our target

price works out to `1,553.

L&T to divest Plastics Machinery Business

Larsen & Toubro (L&T) is looking to sell its plastics machinery business arm, L&T

Plastics Machinery, to Toshiba Machine. As per L&Ts management this move is in

line with the company's strategic road-map to exit non-core businesses and

rationalize its portfolio. L&T Plastics Machinery manufactures and markets injection

moulding machines. It caters to different sectors such as the automotive,

packaging, and stationery sectors. It has manufacturing units in Japan and China,

and primarily caters to the Asian and North American markets. L&T Plastics

Machinery recorded sales and PAT of `206cr and `11cr respectively for FY2012.

The divestment is subject to final closing conditions and L&T has yet not disclosed

the financial value of the deal.


3/13


Market OutlookAugust 28, 2012

At the current market price of `1,398, the stock is trading at a PE of 14.0x

FY2014E earnings, after adjusting for investments, which is below the historical

trading multiple for L&T. We have used the SOTP methodology to value the

company to capture all its business initiatives and investments/stakes in different

businesses. Ascribing separate values to its parent business on a P/E basis and

investments in subsidiaries on P/E, P/BV and mcap basis, our target price worksout to `1,553.

Alembic Pharmaceuticals- Update

Alembic Pharmaceuticals, API 1 plant at Panelav in solvent recovery area had

caught fire on August 26, 2012. The fire was brought under control in about three

hours of firefighting by fire brigade. The exact cause of fire is still not known and is

being investigated. The company is covered by insurance. The incidence is unlikely

to have any impact on the companys financials.

Economic and Political News Deficit monsoon may pose downside risk to growth outlook Controlling inflation will lead to interest rate cut: K C Chakrabarty No cartelization in steel sector: Beni Prasad VermaCorporate News Lupin awaits USFDA nod for more drugs launches Suzuki Motor to stay invested in Haryana despite labour stir SpiceJet to start flights to China, Riyadh by October

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


4/13

Global economic events release calendar

Date Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

Aug 28 2012 12:00AM US Consumer ConfidenceS.A./

1985=100Aug 65.90 66.00

Aug 29 2012 12:00AM US GDP Qoq (Annualised) % Change 2Q S 1.50 1.70

Aug 30 2012 12:00AM US Initial Jobless claims Thousands Aug 25 372.00 370.00

Euro ZoneEuro-Zone ConsumerConfidence

Value Aug F (24.60) (24.60)

Germany Unemployment change (000's) Thousands Aug 7.00 7.00

Aug 31 2012 12:00AM India Qtrly GDP YoY% % Change 2Q 5.30 5.30

Sep 1 2012 12:00AM China PMI Manufacturing Value Aug 50.10 50.00

Sep 3 2012 12:00AM Germany PMI Manufacturing Value Aug F 45.10 --

India Imports YoY% % Change Jul (13.46) --

India Exports YoY% % Change Jul (5.45) --

UK PMI Manufacturing Value Aug 45.40 --Sep 5 2012 12:00AM Germany PMI Services Value Aug F 48.30 --

Sep 6 2012 12:00AM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 2Q P (0.20) --

UK BOE Announces rates % Ratio Sep 6 0.50 0.50

Euro Zone ECB announces interest rates % Sep 6 0.75 --

Sep 7 2012 12:00AM UK Industrial Production (YoY) % Change Jul (4.30) --

US Change in Nonfarm payrolls Thousands Aug 163.00 90.00

US Unnemployment rate % Aug 8.30 8.20

Sep 9 2012 12:00AM China Industrial Production (YoY) % Change Aug 9.20 --

China Consumer Price Index (YoY) % Change Aug 1.80 --

Sep 10 2012 12:00AM China Exports YoY% % Change Aug 1.00 --Sep 12 2012 12:00AM UK Jobless claims change % Change Aug (5.90) --

India Industrial Production YoY % Change Jul (1.80) --

Sep 13 2012 12:00AM US Producer Price Index (mom) % Change Aug 0.30 --

US FOMC rate decision % Sep 13 0.25 --

Sep 14 2012 12:00AM Euro Zone Euro-Zone CPI (YoY) % Aug 2.40 --

IndiaMonthly Wholesale PricesYoY%

% Change Aug 6.87 --

US Industrial Production % Aug 0.65 --

US Consumer price index (mom) % Change Aug -- --

Sep 17 2012 12:00AM India RBI Repo rate % Sep 17 8.00 --

India RBI Cash Reserve ratio % Sep 17 4.75 --

India RBI Reverse Repo rate % Sep 17 7.00 --

Sep 18 2012 12:00AM UK CPI (YoY) % Change Aug 2.60 --

Sep 19 2012 12:00AM US Existing home sales Millions Aug 4.47 --

US Housing Starts Thousands Aug 746.00 --

US Building permits Thousands Aug 811.00 --

Sep 26 2012 12:00AM US New home sales Thousands Aug 372.00 --

Sep 27 2012 12:00AM UK GDP (YoY) % Change 2Q F (0.50) --

Oct 18 2012 12:00AM China Real GDP (YoY) % Change 3Q 7.60 --

Source: Bloomberg, Angel Research


August 28, 2012

Market Outlook


5/13

Market StrategyAugust 28, 2012


Macro watch

Exhibit 1 :Q uarterly G D P trends

5. 9

7 .5

9. 8

7. 4

9 .4

8. 5

7. 68. 2

9. 2

8. 0

6. 76. 1

5. 3

3. 0

4. 0

5. 0

6. 0

7. 0

8. 0

9. 0

10.0

4Q

FY09

1Q

FY10

2Q

FY10

3Q

FY10

4Q

FY10

1Q

FY11

2Q

FY11

3Q

FY11

4Q

FY11

1Q

FY12

2Q

FY12

3Q

FY12

4Q

FY12

(%)

Source: CSO, Ang el Research

Exhibit 2 :IIP trends

3 .7 3. 42. 5

(5.0)

6. 0

2 .7

1. 0

4. 3

(2.8) (0.9)

2. 5

(1.8)

(6.0)

(4.0)

(2.0)

-

2. 0

4. 0

6. 0

8. 0

Ju

l-11

Aug

-11

Sep

-11

O

ct-11

Nov

-11

Dec

-11

Jan

-12

Fe

b-1

2

M

ar

-12

Apr

-12

M

ay

-12

Jun

-12

(%)

Source: M O SPI, Ang el Research

Exhibit 3 :M onthly WPI inflation trends

9. 8 10.0 9. 9 9. 5

7. 76. 9

7. 4 7. 7 7. 5 7. 6 7. 3 6. 9

0. 0

2. 0

4. 0

6. 0

8. 0

10.0

12.0

Aug

-11

Sep

-11

O

ct-11

Nov

-11

Dec

-11

Jan

-12

Fe

b-

12

M

ar-

12

Apr-

12

M

ay

-12

Jun

-12

Ju

l-12

(%)

Source: M O SPI, Ang el Research

Exhibit 4 :M a nufacturing a nd services PM I

48.0

50.0

52.0

54.0

56.0

58.0

60.0

Ju

l-11

Aug

-11

Sep

-11

O

ct-11

Nov

-11

Dec

-11

Jan

-12

Fe

b-1

2

M

ar

-12

Apr

-12

M

ay

-12

Jun

-12

Ju

l-12

M fg. PM I Services PM I

Source: Ma rket, Angel Research; N ote: Level above 50 indicates expansion

Exhibit 5 :Expo rts an d impo rts growth trends

(30.0)

(15.0)

0. 0

15.0

30.0

45.0

60.0

75.0

Ju

l-11

Aug

-11

Sep

-11

O

ct-11

Nov

-11

Dec

-11

Jan

-12

Fe

b-1

2

M

ar

-12

Apr

-12

M

ay

-12

Jun

-12

Expo rts yo y g ro wth Im ports yo y growth( %)

Source: Bloomberg, Angel Research

Exhibit 6 :Key policy rates

4.00

5.00

6.00

7.00

8.00

9.00

Aug

-11

Sep

-11

O

ct-11

Nov

-11

Dec

-11

Jan

-12

Fe

b-1

2

M

ar-

12

Apr-

12

M

ay

-12

Jun

-12

Ju

l-12

Aug

-12

Repo rate Reverse Repo rate C RR(%)

Source: RBI, Angel Research


6/13

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 135 - 2,616 1,466 1,686 14.8 14.8 7.0 8.1 19.2 16.6 4.1 3.5 22.6 22.5 1.9 1.6

United Phosphorus Buy 115 170 5,299 8,421 9,263 16.5 16.5 15.0 17.0 7.7 6.8 1.1 1.0 15.6 15.5 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Accumulate 376 402 3,208 2,844 3,225 15.4 15.5 31.7 36.6 11.9 10.3 3.0 2.4 28.8 26.2 1.1 0.9

Apollo Tyres Neutral 95 - 4,806 13,412 15,041 11.0 11.0 11.5 14.2 8.3 6.7 1.4 1.2 18.7 19.4 0.5 0.4

Ashok Leyland Buy 21 30 5,667 14,920 16,850 9.0 9.3 2.2 2.8 9.8 7.8 1.8 1.6 13.3 15.6 0.5 0.4

Automotive Axle Buy 339 430 512 993 1,140 11.6 11.5 36.9 43.0 9.2 7.9 1.8 1.6 21.2 21.3 0.6 0.4Bajaj Auto Neutral 1,723 - 49,854 21,285 23,927 18.2 18.3 108.5 121.3 15.9 14.2 6.6 5.3 46.1 41.3 2.0 1.7

Bharat Forge Buy 279 351 6,500 7,004 7,985 16.2 16.4 20.3 25.1 13.7 11.2 2.5 2.2 20.0 20.9 1.1 1.0

Bosch India Neutral 8,653 - 27,171 9,034 10,286 17.8 18.3 373.6 435.8 23.2 19.9 4.8 3.9 20.5 19.8 2.7 2.3

CEAT Buy 120 164 412 4,989 5,634 8.7 8.5 32.7 41.1 3.7 2.9 0.5 0.5 15.8 16.9 0.3 0.2

Exide Industries Accumulate 135 149 11,471 5,899 6,771 16.0 17.0 7.4 9.1 18.3 14.8 3.3 2.8 19.0 20.2 1.6 1.3

FAG Bearings Neutral 1,608 - 2,672 1,505 1,747 17.7 18.0 111.5 130.0 14.4 12.4 3.0 2.5 22.8 21.7 1.5 1.2

Hero Motocorp Buy 1,930 2,428 38,544 26,097 29,963 15.0 15.3 139.5 151.8 13.8 12.7 6.5 5.0 54.6 44.3 1.2 1.0

JK Tyre Buy 114 135 466 7,517 8,329 6.1 6.3 26.2 38.5 4.3 3.0 0.6 0.5 13.4 17.2 0.3 0.3

Mahindra and Mahindra Buy 773 879 47,448 36,536 41,650 11.6 11.5 49.3 54.9 15.7 14.1 3.2 2.8 22.1 21.1 1.0 0.9

Maruti Neutral 1,169 - 33,762 42,887 49,079 5.5 6.6 66.8 87.6 17.5 13.3 2.0 1.8 12.1 14.1 0.6 0.5

Motherson Sumi Buy 188 216 7,382 23,342 26,366 7.8 8.2 13.3 18.0 14.2 10.5 3.4 2.7 26.2 28.4 0.5 0.4

Subros Buy 28 34 168 1,230 1,378 8.8 8.6 4.5 5.7 6.2 4.9 0.6 0.6 9.8 11.8 0.4 0.3

Tata Motors Buy 241 292 64,256 195,096 219,428 12.8 12.8 39.0 43.9 6.2 5.5 1.8 1.4 32.6 28.2 0.4 0.3

TVS Motor Accumulate 40 43 1,893 7,545 8,301 6.2 6.1 4.9 5.4 8.1 7.4 1.4 1.3 18.8 18.2 0.2 0.2

Capital Goods

ABB* Sell 740 498 15,690 8,760 10,023 5.5 7.5 12.4 20.7 59.6 35.7 5.7 5.1 10.1 15.2 1.8 1.6BGR Energy Neutral 263 - 1,899 3,669 4,561 11.0 11.0 24.7 29.6 10.7 8.9 1.6 1.4 15.3 16.7 - 0.6

BHEL Neutral 225 - 55,047 47,801 43,757 19.4 19.8 25.7 23.9 8.7 9.4 1.8 1.6 22.7 18.3 1.1 0.9

Blue Star Neutral 183 - 1,646 3,047 3,328 5.4 6.9 12.5 16.2 14.7 11.3 3.5 2.9 26.1 28.2 0.6 0.5

Crompton Greaves Accumulate 117 128 7,473 12,691 14,096 7.0 8.5 6.5 9.1 17.9 12.8 1.9 1.7 11.1 14.2 0.6 0.6

Jyoti Structures Buy 39 59 317 2,622 2,801 10.3 10.7 8.7 13.1 4.5 3.0 0.4 0.4 10.3 14.0 0.3 0.3

KEC International Buy 58 69 1,485 6,858 7,431 7.5 8.3 9.0 11.5 6.4 5.0 1.2 1.0 26.9 27.2 0.3 0.3

LMW Neutral 2,007 - 2,261 2,369 2,727 11.7 11.7 143.4 166.0 14.0 12.1 2.3 2.1 17.4 18.4 0.5 0.3

Thermax Neutral 500 - 5,958 5,514 5,559 8.9 9.6 26.9 28.4 18.6 17.6 3.2 2.9 18.4 17.1 1.0 1.0


August 28, 2012

Market Outlook

Stock Watch


7/13



Cement

ACC Neutral 1,347 - 25,280 11,220 12,896 20.0 20.6 71.1 81.2 18.9 16.6 3.3 3.0 18.1 19.0 1.9 1.6

Ambuja Cements Neutral 188 - 28,988 10,205 11,659 24.6 24.2 10.8 12.0 17.4 15.7 3.6 3.3 19.7 19.8 2.5 2.1

India Cements Neutral 88 - 2,695 4,393 4,914 19.3 19.5 10.1 12.7 8.7 6.9 0.8 0.7 8.8 10.6 1.1 0.9

J K Lakshmi Cements Neutral 96 - 1,175 1,964 2,278 19.5 20.4 16.3 17.9 5.9 5.4 0.9 0.8 14.7 14.6 0.8 1.1

Madras Cements Neutral 185 - 4,398 3,608 3,928 27.4 26.9 15.6 18.1 11.9 10.2 1.9 1.6 16.8 16.9 1.9 1.6

Shree Cements Neutral 3,498 - 12,186 5,519 6,293 24.5 23.7 156.6 225.3 22.3 15.5 5.5 4.7 22.3 26.0 1.9 1.5

UltraTech Cement Neutral 1,752 - 48,026 20,167 22,752 21.7 23.0 90.8 107.8 19.3 16.3 19.3 16.3 - - 1.9 1.8Construction

Ashoka Buildcon Buy 255 304 1,342 2,014 2,293 22.4 22.4 22.6 26.7 11.3 9.6 1.2 1.1 11.4 11.9 2.5 2.8

Consolidated Co Neutral 15 - 272 2,262 2,522 6.7 7.5 1.5 2.7 9.9 5.5 0.4 0.4 4.4 7.5 0.4 0.4

Hind. Const. Neutral 16 - 968 4,239 4,522 9.9 11.2 (2.3) (1.0) (7.1) (16.5) 0.9 1.0 (11.4) (5.6) 1.1 1.2

IRB Infra Buy 126 166 4,191 3,964 4,582 42.3 40.2 15.5 16.9 8.2 7.4 1.3 1.1 16.6 15.8 2.6 2.5

ITNL Buy 170 232 3,299 6,840 7,767 26.4 26.1 24.4 28.4 7.0 6.0 1.0 0.9 16.0 16.2 2.7 2.8

IVRCL Infra Buy 40 61 1,057 5,510 6,722 8.8 9.0 2.5 4.6 15.6 8.7 0.5 0.5 3.4 5.8 0.7 0.6

Jaiprakash Asso. Buy 73 91 15,512 15,259 17,502 25.7 24.7 4.2 5.0 17.2 14.6 1.4 1.3 8.5 9.3 2.4 2.1

Larsen & Toubro Accumulate 1,398 1,553 85,783 60,474 69,091 12.1 11.5 79.7 85.4 17.5 16.4 3.0 2.6 16.3 15.1 1.6 1.4

Madhucon Proj Buy 33 56 243 2,206 2,502 10.7 10.7 4.6 4.7 7.1 7.1 0.4 0.4 5.2 5.0 0.7 0.7

Nagarjuna Const. Buy 35 45 898 5,804 6,513 8.0 8.6 3.0 3.5 11.5 10.0 0.4 0.4 3.2 3.6 0.6 0.7

Patel Engg. Neutral 73 - 508 3,609 3,836 13.1 13.1 14.0 14.6 5.2 5.0 0.3 0.3 6.3 6.1 1.0 1.0

Punj Lloyd Neutral 48 - 1,577 11,892 13,116 8.9 8.9 1.7 3.1 28.0 15.4 0.5 0.5 1.9 3.4 0.6 0.5

Sadbhav Engg. Buy 135 182 2,031 2,789 3,147 10.6 10.7 8.4 10.4 16.0 13.0 2.2 1.9 15.0 15.6 0.9 0.8

Simplex Infra Buy 201 265 994 6,732 7,837 8.1 8.4 23.5 29.4 8.5 6.8 0.8 0.7 9.6 11.0 0.5 0.4

FinancialsAllahabad Bank Neutral 123 - 6,150 7,233 8,579 3.1 3.3 40.5 40.9 3.0 3.0 0.6 0.5 19.4 17.0 - -

Andhra Bank Neutral 93 - 5,204 4,959 5,787 3.1 3.1 22.7 24.5 4.1 3.8 0.7 0.6 16.0 15.3 - -

Axis Bank Buy 1,039 1,373 43,056 15,961 19,583 3.1 3.2 117.3 143.1 8.9 7.3 1.6 1.4 20.1 20.8 - -

Bank of Baroda Buy 625 829 24,476 15,830 19,300 2.6 2.7 118.9 147.1 5.3 4.3 0.8 0.7 16.7 18.0 - -

Bank of India Buy 266 323 15,277 13,159 15,851 2.4 2.5 61.1 71.1 4.4 3.7 0.7 0.6 16.6 17.0 - -

Bank of Maharashtra Neutral 44 - 2,612 3,471 3,889 3.1 3.1 9.0 11.5 4.9 3.9 0.6 0.6 13.7 15.5 - -

Canara Bank Buy 324 421 14,347 11,334 13,629 2.2 2.3 75.4 85.1 4.3 3.8 0.7 0.6 15.2 15.3 - -

Central Bank Accumulate 65 70 4,788 7,181 8,365 2.5 2.7 16.3 21.8 4.0 3.0 0.7 0.6 12.7 15.1 - -


August 28, 2012

Market Outlook

Stock Watch


8/13



Financials

Corporation Bank Buy 375 436 5,560 5,067 5,998 2.1 2.3 105.6 111.0 3.6 3.4 0.6 0.5 17.6 16.3 - -

Dena Bank Buy 87 107 3,042 3,177 3,595 2.8 2.8 25.2 25.4 3.5 3.4 0.6 0.5 18.9 16.4 - -

Federal Bank Accumulate 415 459 7,087 2,697 3,171 3.4 3.4 47.9 58.0 8.7 7.2 1.1 1.0 13.6 14.7 - -

HDFC Reduce 723 671 110,684 7,340 8,805 3.5 3.5 31.5 37.8 22.9 19.1 4.6 4.1 34.8 32.2 - -

HDFC Bank Neutral 595 - 140,231 21,936 27,454 4.4 4.4 28.7 36.0 20.8 16.5 4.0 3.4 20.7 22.0 - -

ICICI Bank Buy 935 1,169 107,526 22,356 27,157 2.9 3.0 68.7 82.0 13.6 11.4 1.6 1.5 14.2 15.5 - -

IDBI Bank Buy 84 101 10,764 7,952 9,876 1.9 2.2 18.5 23.6 4.6 3.6 0.6 0.5 12.8 14.7 - -Indian Bank Accumulate 163 190 7,007 6,294 7,191 3.4 3.4 40.6 44.9 4.0 3.6 0.7 0.6 18.1 17.4 - -

IOB Accumulate 69 80 5,511 7,473 8,732 2.5 2.5 16.7 22.6 4.1 3.1 0.5 0.4 11.8 14.4 - -

J & K Bank Accumulate 938 1,026 4,548 2,625 2,921 3.6 3.5 194.4 191.9 4.8 4.9 1.0 0.8 21.2 18.0 - -

LIC Housing Finance Accumulate 248 279 12,513 1,867 2,338 2.4 2.4 21.1 28.5 11.8 8.7 1.9 1.7 17.5 20.4 - -

Oriental Bank Buy 222 278 6,464 6,518 7,458 2.8 2.9 61.3 65.1 3.6 3.4 0.5 0.5 15.2 14.3 - -

Punjab Natl.Bank Buy 680 950 23,068 20,116 23,625 3.3 3.4 152.8 173.9 4.5 3.9 0.8 0.7 18.2 18.0 - -

South Ind.Bank Buy 22 27 2,509 1,514 1,717 2.8 2.7 4.0 4.2 5.6 5.3 1.1 0.9 20.5 18.5 - -

St Bk of India Buy 1,846 2,270 123,872 64,470 75,940 3.5 3.5 224.4 258.7 8.2 7.1 1.4 1.2 17.6 17.8 - -

Syndicate Bank Buy 93 119 5,622 6,840 7,996 2.9 3.0 25.7 29.2 3.6 3.2 0.6 0.5 17.9 17.8 - -

UCO Bank Neutral 64 - 4,248 5,488 6,338 2.4 2.5 17.3 17.7 3.7 3.6 0.7 0.6 17.0 15.3 - -

Union Bank Buy 155 230 8,528 10,299 12,227 2.9 3.0 42.1 49.3 3.7 3.1 0.7 0.5 16.7 17.1 - -

United Bank Buy 52 79 1,870 3,634 4,194 2.8 2.9 18.2 23.0 2.8 2.3 0.4 0.4 15.0 16.7 - -

Vijaya Bank Neutral 49 - 2,441 2,579 3,028 2.1 2.3 8.8 11.6 5.6 4.3 0.7 0.6 11.1 13.3 - -

Yes Bank Buy 337 453 11,956 3,255 4,228 2.8 3.0 34.2 42.7 9.9 7.9 2.1 1.7 23.3 23.8 - -

FMCG

Asian Paints Neutral 3,663 - 35,140 11,198 13,184 16.3 16.3 121.0 144.8 30.3 25.3 10.2 8.0 37.4 35.3 3.1 2.6Britannia Buy 489 584 5,843 5,835 6,824 5.7 6.0 20.7 25.4 23.6 19.3 9.3 7.1 43.1 41.9 0.9 0.8

Colgate Neutral 1,184 - 16,098 3,018 3,429 20.9 22.3 34.6 41.0 34.2 28.9 31.5 23.9 99.5 94.1 5.2 4.5

Dabur India Neutral 123 - 21,401 6,124 7,030 17.0 16.8 4.5 5.2 27.5 23.7 11.3 9.0 43.2 41.5 3.5 3.0

GlaxoSmith Con* Neutral 2,914 - 12,256 3,124 3,663 17.1 17.6 104.5 123.8 27.9 23.6 8.7 7.0 34.4 32.8 3.5 2.9

Godrej Consumer Neutral 662 - 22,536 6,097 7,233 18.4 18.6 21.9 26.5 30.3 25.0 6.7 5.6 25.5 25.4 3.8 3.2

HUL Neutral 521 - 112,634 25,350 28,974 13.9 13.9 14.3 16.5 36.6 31.6 21.8 16.7 70.9 59.8 4.2 3.6

ITC Neutral 265 - 208,157 29,513 33,885 35.4 35.8 9.3 10.8 28.6 24.6 9.5 7.9 35.6 35.0 6.7 5.8


August 28, 2012

Market Outlook

Stock Watch


9/13



FMCG

Marico Neutral 195 - 12,539 4,840 5,643 13.1 13.1 6.8 8.5 28.7 23.0 7.9 6.0 31.4 29.7 2.6 2.2

Nestle* Neutral 4,717 - 45,484 8,610 10,174 20.9 21.2 114.8 139.8 41.1 33.7 24.8 17.3 71.2 60.3 5.3 4.4

Tata Global Accumulate 128 136 7,943 7,207 7,927 9.7 10.0 6.6 7.9 19.4 16.4 2.0 1.9 8.6 9.5 1.0 0.9

IT

HCL Tech Neutral 559 - 38,766 24,400 27,049 18.6 17.5 41.1 45.0 13.6 12.4 3.1 2.6 22.7 21.1 1.5 1.3

Hexaware Accumulate 120 133 3,561 1,947 2,161 22.0 21.4 11.4 12.1 10.6 9.9 2.7 2.3 26.4 24.0 1.6 1.4

Infosys Neutral 2,411 - 138,421 39,151 41,743 31.6 31.9 161.9 174.5 14.9 13.8 3.5 3.1 23.8 22.1 3.0 2.7Infotech Enterprises Neutral 179 - 1,994 1,889 2,065 18.0 17.5 18.0 19.7 9.9 9.1 1.4 1.3 14.5 13.7 0.7 0.6

KPIT Cummins Neutral 123 - 2,192 2,149 2,331 15.6 14.8 10.7 11.2 11.5 10.9 2.4 2.0 20.6 17.8 1.1 0.9

Mahindra Satyam Neutral 99 - 11,692 7,574 8,062 19.6 18.4 9.5 9.7 10.5 10.3 1.7 1.5 16.1 14.1 1.2 1.0

Mindtree Neutral 675 - 2,755 2,341 2,513 18.6 17.1 66.5 70.8 10.2 9.5 2.2 1.8 22.3 19.3 1.0 0.9

Mphasis Neutral 373 - 7,828 5,704 6,009 18.6 17.7 36.0 37.1 10.4 10.1 1.5 1.3 14.0 12.6 0.9 0.8

NIIT Buy 33 40 537 1,162 1,304 14.8 15.1 7.1 8.8 4.6 3.7 0.8 0.7 16.7 18.4 0.3 0.2

Persistent Accumulate 379 398 1,516 1,193 1,278 25.6 24.3 42.6 44.3 8.9 8.6 1.5 1.3 17.2 15.5 0.9 0.8

TCS Neutral 1,319 - 258,187 61,046 67,507 29.3 29.1 67.3 72.4 19.6 18.2 6.2 5.2 31.9 28.3 4.0 3.6

Tech Mahindra Neutral 876 - 11,175 6,148 6,434 18.4 17.6 91.8 97.6 9.5 9.0 2.2 1.8 23.4 20.2 1.8 1.6

Wipro Buy 361 420 88,885 43,492 48,332 19.4 19.3 25.1 28.0 14.4 12.9 2.7 2.3 18.6 18.0 1.7 1.5

Media

D B Corp Buy 186 236 3,415 1,597 1,785 22.9 24.2 11.1 13.9 16.7 13.4 3.2 2.8 20.2 22.1 2.0 1.7

HT Media Buy 91 113 2,138 2,111 2,263 15.2 15.2 7.3 8.1 12.4 11.2 1.3 1.2 11.2 11.2 0.6 0.4

Jagran Prakashan Buy 92 112 2,919 1,506 1,687 22.5 23.2 6.2 7.0 14.9 13.2 3.6 3.2 25.0 25.7 2.1 1.9

PVR Neutral 183 - 476 625 732 17.4 17.1 13.3 15.6 13.8 11.7 1.5 1.3 13.2 13.8 1.2 1.0

Sun TV Network Neutral 295 - 11,610 1,981 2,239 77.0 76.7 18.6 21.3 15.9 13.8 4.0 3.5 27.1 27.5 5.4 4.6Metals & Mining

Bhushan Steel Neutral 465 - 9,873 11,979 14,584 31.6 31.0 49.2 61.4 9.5 7.6 1.2 1.1 14.1 15.2 2.8 2.3

Coal India Accumulate 364 385 230,074 69,808 75,550 27.4 27.4 26.0 28.3 14.0 12.9 4.1 3.3 32.5 28.1 2.4 2.0

Electrosteel Castings Buy 19 23 647 1,984 2,074 11.2 12.6 2.5 2.9 7.6 6.5 0.4 0.1 5.1 5.7 0.5 0.5

Hind. Zinc Accumulate 130 144 54,718 12,446 13,538 52.3 52.9 14.3 15.5 9.1 8.3 1.7 1.5 20.5 18.9 2.6 2.0

Hindalco Neutral 110 - 21,070 84,855 92,446 8.7 9.3 13.2 16.2 8.3 6.8 0.6 0.6 7.8 8.9 0.6 0.6

JSW Steel Neutral 721 - 16,085 38,740 41,459 17.3 17.0 79.9 89.4 9.0 8.1 0.9 0.8 10.4 10.6 0.9 0.8

MOIL Accumulate 243 271 4,075 918 993 50.7 50.9 24.5 26.1 9.9 9.3 1.5 1.4 16.0 15.5 2.1 1.8

Monnet Ispat Buy 293 379 1,884 2,511 3,303 23.8 26.0 46.3 57.3 6.3 5.1 0.7 0.6 12.4 13.7 1.7 1.2


August 28, 2012

Market Outlook

Stock Watch


10/13



Metals & Mining

Nalco Reduce 52 48 13,299 7,401 7,841 16.7 19.2 3.4 4.1 15.1 12.6 1.1 1.0 7.4 8.4 1.3 1.3

NMDC Buy 187 214 74,061 12,934 14,266 79.4 80.1 21.1 23.4 8.9 8.0 2.4 1.9 29.6 26.5 3.8 3.2

SAIL Neutral 84 - 34,634 47,252 60,351 14.2 14.8 9.6 11.7 8.8 7.2 0.8 0.7 9.4 10.6 1.2 1.0

Sesa Goa Neutral 187 - 16,291 7,704 8,034 33.6 34.6 42.0 43.1 4.5 4.4 0.9 0.8 22.3 19.2 0.4 0.1

Sterlite Inds Neutral 110 - 37,017 41,680 45,382 24.2 23.2 16.3 16.9 6.8 6.5 0.7 0.7 11.3 10.7 0.6 0.4

Tata Steel Buy 386 481 37,440 145,799 150,431 10.3 11.2 48.6 63.3 7.9 6.1 0.8 0.7 10.5 12.4 0.5 0.5

Sarda Buy 125 148 449 1,251 1,321 22.7 23.4 33.0 37.1 3.8 3.4 0.5 0.5 15.1 14.8 0.7 0.6Prakash Industries Buy 56 73 757 2,694 2,906 14.6 16.6 17.9 22.6 3.2 2.5 0.3 0.3 11.4 12.8 0.5 0.4

Godawari Power andIspat

Buy 120 161 379 2,341 2,425 15.6 17.3 33.8 43.8 3.5 2.7 0.4 0.4 13.2 14.4 0.5 0.5

Oil & Gas

Cairn India Accumulate 345 380 65,912 16,605 17,258 75.4 71.7 57.0 54.9 6.1 6.3 1.1 0.9 20.2 16.3 3.0 2.3

GAIL Neutral 365 - 46,306 50,176 55,815 15.5 15.8 35.4 36.5 10.3 10.0 1.8 1.6 18.9 17.0 0.1 -

ONGC Accumulate 288 312 246,056 147,139 154,821 33.9 33.7 30.7 32.3 9.4 8.9 1.6 1.5 18.3 17.2 1.4 1.3

Reliance Industries Neutral 787 - 257,838 362,700 380,031 7.9 8.0 61.5 64.3 12.8 12.3 1.3 1.2 10.3 9.9 0.7 0.6

Gujarat Gas Neutral 299 - 3,835 2,472 3,267 16.1 11.5 21.2 19.2 14.1 15.6 4.9 4.1 33.4 28.7 1.4 1.1

Indraprastha Gas Neutral 257 - 3,592 3,040 3,135 24.3 26.7 24.8 27.9 10.4 9.2 2.4 2.0 25.5 23.6 1.3 1.1

Petronet LNG Buy 150 176 11,261 22,696 29,145 8.1 6.6 14.1 14.2 10.7 10.6 3.2 2.6 34.1 26.9 0.6 0.4

Gujarat State PetronetLtd.

Neutral 77 - 4,324 1,041 939 91.8 91.9 8.5 7.4 9.1 10.4 1.5 1.4 18.1 14.0 5.1 5.7

Pharmaceuticals

Alembic Pharma Buy 69 91 1,295 1,624 1,855 14.2 15.6 6.6 9.1 10.4 7.6 2.5 2.0 27.9 29.2 1.0 0.8

Aurobindo Pharma Buy 111 156 3,236 5,243 5,767 14.6 14.6 11.8 12.6 9.4 8.8 1.0 0.4 17.9 16.4 1.1 1.0

Aventis* Neutral 2,115 - 4,872 1,482 1,682 15.5 15.5 95.0 104.0 22.3 20.3 4.0 3.1 18.6 17.0 3.2 2.7Cadila Healthcare Accumulate 884 953 18,104 6,148 7,386 18.6 19.6 36.0 46.1 24.6 19.2 5.8 4.6 25.8 26.8 3.1 2.6

Cipla Accumulate 368 399 29,560 8,031 9,130 23.4 22.4 18.4 20.0 20.0 18.4 3.3 2.9 17.8 16.6 3.4 3.0

Dr Reddy's Neutral 1,672 - 28,381 10,696 11,662 20.7 21.0 83.7 92.9 20.0 18.0 4.1 3.5 22.4 21.0 3.0 2.6

Dishman Pharma Neutral 101 - 815 1,280 1,536 17.8 17.8 9.2 11.3 11.0 8.9 0.8 0.8 7.7 8.5 1.3 1.0

GSK Pharma* Neutral 2,089 - 17,694 2,651 2,993 31.7 31.2 76.0 82.4 27.5 25.4 7.9 7.1 20.1 26.3 5.9 5.1

Indoco Remedies Buy 67 92 613 685 837 15.2 15.2 7.4 8.9 9.0 7.5 1.4 1.2 16.4 17.0 1.1 0.9

Ipca labs Buy 418 475 5,275 2,850 3,474 20.7 20.7 29.2 36.6 14.3 11.4 3.4 2.7 26.1 26.1 2.0 1.6

Lupin Accumulate 573 647 25,626 8,426 10,082 19.7 20.0 27.4 32.4 20.9 17.7 5.1 4.1 26.0 24.7 3.1 2.6

Orchid Chemicals Buy 113 178 798 2,117 2,434 17.7 17.7 16.7 22.2 6.8 5.1 0.6 0.6 9.5 11.5 1.1 0.9


August 28, 2012

Market Outlook

Stock Watch


11/13



Pharmaceuticals

Ranbaxy* Neutral 554 - 23,406 12,046 11,980 18.0 15.8 35.7 29.8 15.5 18.6 6.0 4.9 39.1 28.9 2.0 1.9

Sun Pharma Neutral 670 - 69,261 9,752 12,134 41.6 41.6 26.0 28.2 25.8 23.8 4.8 4.1 20.3 18.8 6.3 4.9

Power

CESC Accumulate 314 342 3,919 5,218 5,644 24.2 23.8 44.6 47.6 7.0 6.6 0.7 0.7 11.0 10.6 1.1 1.1

GIPCL Accumulate 69 77 1,038 1,557 1,573 29.3 28.7 10.8 11.0 6.4 6.2 0.7 0.6 10.8 10.2 1.1 1.0

NTPC Neutral 169 - 139,266 74,111 85,789 23.2 23.6 12.4 14.0 13.7 12.0 1.7 1.6 13.0 13.5 2.6 2.4

Real EstateAnant Raj Buy 47 78 1,396 657 875 52.0 56.1 8.4 12.7 5.6 3.7 0.3 0.3 6.3 8.9 3.3 2.5

DLF Neutral 201 - 34,157 9,878 12,033 44.7 46.1 9.6 13.4 21.0 15.0 1.3 1.3 6.4 8.7 6.1 5.0

HDIL Buy 73 115 3,044 2,441 3,344 55.1 48.2 22.7 26.6 3.2 2.7 0.3 0.2 8.8 9.4 3.1 2.4

MLIFE Accumulate 346 396 1,411 813 901 26.2 26.6 32.0 37.1 10.8 9.3 1.1 1.0 10.4 11.0 2.1 1.8

Telecom

Bharti Airtel Neutral 249 - 94,596 79,542 87,535 30.9 32.2 10.3 15.0 24.2 16.6 1.8 1.6 7.2 9.6 1.9 1.6

Idea Cellular Neutral 75 - 24,808 22,988 25,333 26.4 26.9 3.5 4.9 21.6 15.3 1.7 1.6 8.1 10.2 1.5 1.3

Rcom Neutral 52 - 10,764 21,553 22,494 31.0 30.7 3.5 4.5 15.0 11.7 0.3 0.3 1.9 2.4 2.0 1.8

zOthers

Abbott India Neutral 1,581 - 3,360 1,602 1,833 10.4 11.8 54.7 71.7 28.9 22.1 5.5 4.6 20.0 22.7 1.9 1.6

Bajaj Electricals Buy 177 234 1,759 3,569 4,172 8.1 8.8 16.3 21.3 10.8 8.3 2.2 1.9 21.7 24.6 0.5 0.4

Cera Sanitaryware Neutral 294 - 372 396 470 16.7 16.5 28.0 33.2 10.5 8.9 2.2 1.8 23.8 23.1 1.2 1.0

Cravatex Buy 442 785 114 302 364 5.7 6.0 49.0 71.0 9.0 6.2 2.7 1.9 29.8 30.7 0.5 0.4

CRISIL Neutral 899 - 6,308 982 1,136 34.3 34.3 34.3 40.0 26.2 22.5 11.9 9.5 50.9 46.9 6.1 5.1

Finolex Cables Buy 37 61 564 2,334 2,687 8.8 9.3 7.6 10.2 4.8 3.6 0.6 0.5 13.7 16.1 0.2 0.1

Force Motors Buy 439 591 573 2,214 2,765 4.5 5.4 39.5 73.9 11.1 6.0 0.5 0.5 4.4 7.6 0.1 0.1Goodyear India Accumulate 334 370 771 1,543 1,646 8.1 9.2 32.3 39.4 10.3 8.5 2.1 1.8 21.7 22.4 0.3 0.2

Graphite India Buy 79 113 1,547 2,158 2,406 18.1 18.9 12.4 14.0 6.4 5.6 0.9 0.8 14.0 14.3 0.9 0.7

Greenply Industries Buy 187 309 452 1,925 2,235 10.6 10.9 29.6 44.1 6.3 4.3 1.0 0.8 16.8 21.0 0.5 0.4

HEG Accumulate 204 229 814 1,586 1,685 17.9 18.1 16.1 25.7 12.7 7.9 0.9 0.9 7.5 11.6 1.2 1.1

Hitachi Accumulate 113 130 260 868 977 3.9 6.6 2.7 10.9 41.2 10.4 1.5 1.3 3.7 13.6 0.4 0.3

Honeywell Automation Accumulate 2,461 2,842 2,175 1,847 2,162 4.3 7.3 61.0 120.0 40.3 20.5 3.2 2.8 9.3 16.3 1.1 0.9

INEOS ABS India Accumulate 670 744 1,178 1,056 1,081 8.1 10.6 33.8 46.5 19.8 14.4 2.7 2.3 14.7 17.5 1.0 0.9

ITD Cementation Neutral 230 - 265 1,451 1,669 12.3 12.4 32.4 41.5 7.1 5.5 0.6 0.6 9.4 10.9 0.6 0.6

Jyothy Laboratories Reduce 154 145 2,489 1,248 1,468 9.8 10.4 5.9 7.2 26.0 21.5 3.7 3.4 15.0 16.6 2.4 2.0

MCX Buy 1,125 1,440 5,738 553 624 65.3 66.3 62.5 72.0 18.0 15.6 5.0 4.3 27.5 27.4 7.7 6.3


August 28, 2012

Market Outlook

Stock Watch


12/13



zOthers

MRF Buy 10,643 12,884 4,514 11,804 12,727 10.4 10.5 1,289.9 1,431.3 8.3 7.4 1.6 1.3 21.3 19.4 0.5 0.5

Page Industries Neutral 3,095 - 3,452 887 1,108 18.3 18.6 95.0 120.9 32.6 25.6 17.0 13.8 57.4 59.5 3.8 3.0

Relaxo Footwears Accumulate 594 684 713 1,019 1,208 12.3 13.0 51.0 68.4 11.7 8.7 3.1 2.3 30.3 30.2 0.9 0.7

Sintex Industries Buy 57 79 1,546 4,751 5,189 16.3 16.6 13.6 15.8 4.2 3.6 0.6 0.5 12.9 13.2 0.7 0.6

Siyaram Silk Mills Buy 290 392 272 1,042 1,173 12.4 12.5 66.3 78.5 4.4 3.7 0.9 0.7 21.1 20.8 0.5 0.4

S. Kumars Nationwide Buy 19 38 578 7,279 8,290 20.5 20.5 13.4 16.3 1.5 1.2 0.2 0.2 12.3 13.1 0.7 0.6

SpiceJet Buy 32 43 1,555 5,720 6,599 5.3 6.8 3.6 5.4 8.9 6.0 12.9 4.1 - - 0.4 0.4TAJ GVK Buy 63 108 396 300 319 35.8 36.2 7.9 9.1 8.0 6.9 1.1 1.0 13.9 14.4 1.7 1.4

Tata Sponge Iron Buy 305 424 470 787 837 16.2 17.5 58.5 66.9 5.2 4.6 0.7 0.7 14.9 15.1 0.2 0.1

TVS Srichakra Accumulate 323 335 247 1,476 1,643 7.1 8.2 24.7 42.8 13.1 7.6 1.6 1.3 16.6 24.8 0.4 0.3

United Spirits Neutral 934 - 12,212 10,289 11,421 13.5 14.3 31.0 42.9 30.1 21.8 2.3 2.1 8.1 10.3 1.9 1.7

Vesuvius India Neutral 352 - 713 560 611 16.1 17.0 24.7 28.8 14.2 12.2 2.1 1.9 15.8 16.2 1.2 1.0

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 27, 2012


August 28, 2012

Market Outlook

Stock Watch


13/13

August 28, 2012Market Outlook

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Market Outlook 280812