Market Outlook Market Outlook: Dealer's Diary

Market Outlook
August 7, 2012
Dealers Diary
Indian markets are expected to open flat, tracing flat to marginally positive
opening trades in the SGX Nifty and the major Asian bourses. Most of the Asian
bourses have edged slightly higher ahead of a Bank of Japan policy meeting
tomorrow, after Germany backed a ECB bond buying plan to ease the regions
debt crisis.
Domestic Indices
Chg (%)
(Pts)
(Close)
BSE Sensex
1.3
Nifty
1.3
66.9
5,283
MID CAP
0.5
32.4
6,105
The US markets gave back ground in the latter part of the trading session on
Monday, but still ended the session mostly higher after seeing early strength and
extended the substantial upward move seen during the last trading session. Traders
continued to react positively to last Friday's monthly jobs report, which showed
much stronger than expected job growth in the month of July. The European
markets also edged higher on Monday, as sentiment was influenced by positive
news out of Greece and the U.S. jobs data released in the previous session.
SMALL CAP
0.8
51.5
6,597
BSE HC
0.6
41.3
7,317
BSE PSU
0.3
20.8
7,090
BANKEX
1.4
163.2 11,998
AUTO
1.7
153.6
METAL
1.0
OIL & GAS
3.0
245.9
8,352
Meanwhile, the Indian markets rose sharply on Monday, extending rally of last
week, as upbeat U.S. employment data as well as modest growth in the U.S.
service sector in July, eased worries looming over global growth.
BSE IT
(0.1)
(6.2)
5,346
(Pts)
(Close)
Dow Jones
0.2
21.3 13,118
Markets Today
NASDAQ
0.7
22.0
2,990
The trend deciding level for the day is 17,393 / 5,279 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 17,472 17,531 / 5,297 5,311 levels. However, if NIFTY trades below
17,393 / 5,279 levels for the first half-an-hour of trade then it may correct up to
17,333 17,254 / 5,265 5,247 levels.
FTSE
0.4
21.5
5,809
Nikkei
2.0
171.2
8,726
Hang Seng
1.7
332.5 19,999
Straits Times
0.7
20.5
3,072
Shanghai Com
1.0
22.1
2,155
Chg (%)
(Pts)
(Close)
INFY
1.5
0.6
$40.7
WIT
1.0
0.1
$8.0
IBN
1.2
0.4
$35.0
(0.3)
(0.1)
$35.9
Indices
S2
S1
PIVOT
R1
R2
SENSEX
17,254
17,333
17,393
17,472
17,531
NIFTY
5,247
5,265
5,279
5,297
5,311
News Analysis
Britannia to pay royalty for using Wadia group name

Aurobindo Pharma gets approval for Montelukast Tablets
Sadbhav Engineering emerges L1 for `378cr irrigation projects
IVRCL bags orders worth `620cr
1QFY2013 Result Reviews- DLF, SAIL, Cadila Healthcare, Andhra Bank,
Britannia, LMW, Relaxo Footwear, Prakash Industries
1QFY2013 Result Previews- J&K Bank, MOIL, Aurobindo Pharma
Refer detailed news analysis on the following page
Net Inflows (August 3, 2012)

` cr
Purch
Sales
Net
MTD
YTD
FII
1,510
1,342
168
979
54,260
420
508
(88)
(44)
(8,122)
MFs
FII Derivatives (August 6, 2012)

` cr
Purch
Sales
Net
Open Interest
Index Futures
1,234
853
381
14,194
Stock Futures
1,406
792
615
24,098
Gainers / Losers
Gainers
Company
Losers
Price (`)
chg (%)
Price (`)
chg (%)
RIL
785
5.7
Britannia Inds
460
(3.0)
REC
206
5.3
Godrej Cons
618
(2.8)
Reliance Cap
350
4.4
BPCL
344
(2.4)
75
4.3
India Cements
85
(2.2)
1,054
4.3
Pipavav Defence
61
(2.2)
Gujarat State Pet

Wockhardt
www.angelbroking.com
Company
Global Indices
Indian ADRs
HDB
Advances / Declines
Chg (%)
215.0 17,413
9,173
99.0 10,301
BSE
NSE
Advances
1,676
492
Declines
1,162
989
121
70
Unchanged
Volumes (` cr)
BSE
1,685
NSE
8,639
Market Outlook
August 7, 2012
Britannia to pay royalty for using Wadia group name

Britannia Industries, Bombay Dyeing and Manufacturing, and Go Airlines (India)
will have to pay royalty to the parent for using the Wadia Group brand name
and for sharing common services. Both the royalty and shared service costs will be
paid to the group holding company Nowrosjee Wadia and Sons Ltd (NWS). Wadia
group chairman Nusli Wadia stated that all group outfits listed and unlisted
would be subjected to royalty. As per the agreement, Wadia group can charge up
to 0.25% towards royalty, but it plans to keep it at 0.1%. Further, the group
companies will also shell out up to 0.25% of their net sales as costs for sharing
common services including legal, taxation and treasury, offered by the promoter
group. We believe this is negative for Britannia. We continue to maintain our Buy
recommendation on Britannia with a target price of `633.
Aurobindo Pharma gets approval for Montelukast Tablets

Aurobindo Pharma has announced that it has received the final approvals from
the US Food & Drug Administration (USFDA) to manufacture and market
Montelukast Sodium Tablets 10mg (ANDA 202468) and Montelukast Sodium
Chewable Tablets 4mg and 5mg (ANDA 202096). The products are ready for a
first-day launch. Montelukast Sodium Tablets 10mg and Chewable Tablets 4mg
and 5mg are the generic equivalent of Merck & Co. Incs Singulair Tablets 10mg
and Chewable Tablets 4mg and 5mg respectively.
The annual sales of Montelukast Sodium Tablets 10mg is approximately US$3.5
billion and that of Montelukast Sodium Chewable Tablets is US$1.1 billion for the
twelve months ending March 2012 according to IMS. The products have been
approved out of its Unit VII (SEZ) formulations facility in Hyderabad, India.
Aurobindo now has a total of 157 ANDA approvals (131 final approvals including
1 from Aurolife Pharma LLC and 26 tentative approvals) from the USFDA. Overall,
the company expects around 7-8 players in the product. Given the size of the
product, the product can contribute around US $20-30mn for the full year.
However, this has already been included in our financials and the 15% yoy growth
revenue target for the FY2013.
At the current market price, the stock trades at 9.0x FY2014E earnings. We
maintain our estimates and Buy recommendation with a target price of `156.
Sadbhav Engineering emerges L1 for `378cr irrigation projects

Sadbhav Engineering (SEL) has emerged lowest bidder for five irrigation projects in
Gujarat. These projects are being awarded by Sardar Sarovar Narmada Nigam
Limited, Gandhinagar, Gujarat for aggregating contract value of `378cr. The
order back of the company stands at ~`7,591cr (3.0x FY2013 revenues)
providing revenue visibility. At current levels, the stock is trading at valuations of
12.8x FY2014E earnings and 1.9x FY2014E P/BV on standalone basis. Based on
a Target P/E multiple of 8x and valuing the companys BOT arm on DCF basis,
our SOTP based Target Price works out to `182. Hence, we recommend Buy on
the stock.
Market Outlook
August 7, 2012
IVRCL bags orders worth `620cr

IVRCL has bagged orders worth `620cr in the transportation, buildings and power
divisions. The transportation division has received orders worth `301.7cr from Rail
Vikas Nigam Ltd. The order involves 2 packages and has been awarded to IVRCLMRT (JV) with a completion period of 42 months. The buildings division has
received orders to the tune of `257.1cr which include an order worth `132.7cr
from the roads and buildings department, Government of Andhra Pradesh, and a
`52.8cr order from the Department of Atomic Energy. The power division has
secured an order worth `61.0cr from the City and Industrial Development
Corporation of Maharashtra Ltd, Mumbai. We maintain our Buy view on the stock
with a sum of the parts (SoTP) based target price of `61.
Result Reviews
DLF (CMP: `211/ TP:-/ Upside :-)
DLF reported disappointing 1QFY2013 results as both net sales and net profit
were below our estimates. DLFs sales declined by 10.1% yoy and 16% qoq, which
was lower than our expectation. The revenue came in at `2,198cr for the quarter
below our expectation of `2,550cr. EBITDA declined 3.6%, as there was EBITDA
margins expansion by 300bps to 48.6% during the quarter. PAT was down 18.3%
for the quarter, due to higher than expected interest cost which has been eating
into profitability. PAT came in at `293cr during the quarter down 18.3% yoy. We
will come out with a detailed note post the analyst call. We maintain Neutral rating
on the stock.
Y/E
March
Sales
(` cr)
FY2013E
9,878
FY2014E
12,033
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
44.7 1,631
10
6.5
21.5
1.4
14.0
6.3
46.1 2,277 13.4
8.7
15.5
1.3
11.1
5.1
SAIL (CMP: `85/ TP:-/ Upside :-)

SAIL reported disappointing 1QFY2013 results as both net sales and net profit
were below our estimates on account of lower-than-expected sales volumes. SAILs
1QFY2013 net sales declined by 1.6% yoy to `10,641cr (below our estimates of
`13,249cr) mainly due to lower volumes in the quarter which were down 9.1% yoy
to 2.5mn tonne. Power and fuel costs and other expenditure rose 20.3% yoy and
119.7% yoy to `1,224 and `1,710cr, respectively. Raw material costs declined by
12.4% yoy to `4,335cr due to a decrease in coal costs in our view. Hence, the
EBITDA increased by 15.5% yoy to `1,515cr and EBITDA margin improved by
210bp yoy to 14.2% (slightly below our estimate of 14.0%). The company reported
an exceptional item related to forex loss of `257cr in 1QFY2013, compared to an
exceptional forex loss of `12cr in 1QFY2012. Hence, the reported net profit
decreased by 15.8% yoy to `696cr. However, excluding exceptional items, the
adjusted net profit increased by 13.6% yoy to `953cr (below our estimate of
`1,077cr) in 1QFY2013. Currently, SAIL is trading at rich valuations of 8.4x and
Market Outlook
August 7, 2012
6.9x FY2013 and FY2014 EV/EBITDA respectively. Hence, we maintain our

Neutral view on the stock.
Y/E
March
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
47,252
14.2
3,952
9.6
9.4
8.9
0.8
8.4
1.2
FY2014E
60,351
14.8
4,847 11.7
10.6
7.3
0.7
6.9
1.0
Cadila Healthcare (CMP: `908, TP: `953, Upside-5%)

Cadila has posted results above expectations on the sales front, while the net
profits came in below expectations. The net sales grew 30.1% yoy to `1,544cr on
the back of robust growth in domestic formulations and exports. This was way
ahead of the `1,352cr sales expected for the quarter. The domestic sales grew by
25.4% yoy, with domestic formulations registering a growth of 27.2% yoy. On the
other hand exports grew by 39.5% yoy, with formulation exports registering a
growth of 43.9% yoy. On the operating front, while the gross margins came in at
expected levels at ~65.4%, the OPM came in at 17.6%, lower than the expected
19.4% for the quarter. This was mainly on the back of a substantial rise in the
employee expenses, which grew by 36.0% yoy. Thus, inspite of the higher sales,
the net profit came in lower at `194.9cr vs an expected `218.7cr for the quarter.
We would be revisiting our numbers; however, as of now on our target price of
`953, we recommend a neutral view.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
6,148
18.6
736 36.0
25.8
25.2
5.0
14.8
2.7
FY2014E
7,386
19.6
943 46.1
26.8
19.7
4.0
11.5
2.3
Andhra Bank - (CMP: `100 / TP: - / Upside: -)

Andhra Bank registered a disappointing performance, both on the operating as
well as on the asset quality front, for 1QFY2013. The reported net profit declined
by 5.9% yoy to `363cr. The growth in net interest income remained subdued at
3.1% yoy to `938cr, while the operating profits remained flattish on a y-o-y basis
at `704cr. The bank witnessed continued pressure on the asset quality front, with a
sequential increase in both gross and net NPA levels by ~60bp each to 2.7% and
1.5%, respectively. The PCR dipped on a sequential basis by ~1,075bp to 60.4%.
At the current market price, the stock is trading at a relatively expensive valuation
of 0.6x FY2014E ABV. We maintain our Neutral recommendation on the stock.
Y/E
Op. Inc
NIM
PAT
EPS
ABV
ROA
ROE
P/E
P/ABV
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
5,225
3.3
1,269
22.7 147.1
0.9
16.0
4.5
0.7
FY2014E
6,024
3.3
1,418
25.3 164.6
0.9
15.8
4.0
0.6
March
Market Outlook
August 7, 2012
Britannia Industries (CMP: `460/TP: `633/Upside: 38%)

For 1QFY2013 Britannia Industries posted a 10.8% yoy growth in its
standalone topline to `1,222cr. While the company has posted 3-4% volume
growth, the rest of the growth on top-line front is on account of price (~2-3%)
and product mix. OPM came in below our estimates at 5.3%. Adjusted profit
rose by 41.9% yoy to `43cr. We maintain a Buy on the stock, with a Target
Price of `633.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
5,835
6.3
247 20.7
42.7
22.2
8.7
14.5
0.9
FY2014E
6,824
6.7
329 27.5
44.3
16.7
6.5
11.7
0.8
Lakshmi Machine Works (CMP: `1,601 / TP: Under Review)

Lakshmi Machine Works (LMW) announced below par numbers for 1QFY2013.
The companys net sales declined by 13.3% qoq and 13.3% yoy to `435cr on the
back of lower sales in the textile machinery division. The textile machinery division
registered a 10.8% qoq and 15.8% yoy decline in revenue to `369cr. The
companys others segment, also witnessed 26.4% qoq and 8.8% yoy decline in
revenue to `69cr. The companys EBITDA declined by 20.4% yoy to `55cr on the
back of lower revenue and margin contraction. EBITDA margin contracted by
93bp yoy to 12.7% on account of higher other expenditure. Other expenditure as
a percentage of sales increased to 18.1% in 1QFY2013 compared to 17.4% in
1QFY2012. PAT declined by 33.7% yoy to `28cr on the back of margin
contraction and higher tax provision which increased to 41.5% of PBT in
1QFY2013 vs. 32.0% of PBT in 1QFY2012. Consequently, PAT margin also
declined by 182bp yoy to 6.3%. Currently the stock price is under review. We will
revise our estimates and target price post an interaction with the management.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
2,369
11.7
162143.4
17.4
11.2
1.9
2.7
0.3
FY2014E
2,727
11.7
187166.0
18.4
9.6
1.7
1.7
0.2
Relaxo Footwear - (CMP `531, TP - `684, Upside: 29%)

For 1QFY2013, Relaxo footwear reported a good set of numbers. The top-line
grew by 14.8% yoy to `248cr which was in line with our estimate of `250cr. The
company's operating margin improved by 76bp yoy to 12.1%, mainly on the back
of softening of raw material prices. However, it contracted by 198bp on a q-o-q
basis, mainly on account of a substantial increase in the employee cost and other
expenses. The profit for the quarter witnessed a jump of 39.6% yoy to `15cr,
10.8% higher than our estimate of `14cr. The company is in an expansion mode
and plans to incur a capex of `60cr in FY2013E for a PU (Polyurethane) footwear
plant (expected to get completed by FY2013) and `25cr in FY2014E for building a
warehouse (to be completed by FY2014E). In addition the company plans to open
Market Outlook
August 7, 2012
25-30 retail stores each year. It recently signed up Salman Khan for the
endorsement of Relaxo Hawaii brand. The stock is currently trading at a PE of 8.5x
for FY2014E. We maintain our positive outlook on the company with a Buy
recommendation and target price of `684.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
1,019
11.8
58
48
28.9
11.0
2.8
6.7
0.8
FY2014E
1,220
12.1
75
62
28.2
8.5
2.1
5.5
0.7
Prakash Industries - (CMP: `60/ TP: Under review)

Prakash Industries net sales increased by 34.8% yoy to `672cr in 1QFY2013
mainly on account of increase in average realizations across product categories.
However, the EBITDA margin dipped by 356bp yoy to 18.2% on account of a
sharp rise in iron ore costs. The EBITDA increased by 8.4% yoy to `98cr. Interest
expenses stood at `13cr in 1QFY2013 compared to `0.3cr in 1QFY2012.
Consequently, the net profit decreased by 15.5% yoy to `60cr. We keep our rating
and target price for the stock under review.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
2,694
14.4
190 14.1
9.1
4.6
0.4
4.2
0.6
FY2014E
2,790
12.3
122 9.1
5.5
7.2
0.4
5.2
0.6
Result Previews
J&K Bank- (CMP: `936 / TP: - / Upside: -)
J&K Bank is slated to announce its 1QFY2013 results today. We expect the bank to
report a healthy Net Interest Income (NII) growth of 20.1% yoy to `525cr. Growth
in non-interest income is expected to be healthy at 18.7% yoy to `79cr. Operating
expenses of the bank are expected to be higher by 16.4% yoy to `219cr. Net Profit
is expected to grow by healthy 18.3% yoy to `216cr, despite significantly higher
49.6% yoy increase in provisioning to `67cr. At the CMP, the stock trades at a
valuation of 0.8x FY2014E ABV. We maintain our Neutral recommendation on the
stock.
Y/E
Op. Inc
NIM
PAT
EPS
ABV
ROA
(` cr)
(%)
(` cr)
(`)
(%)
(x)
FY2013E
2,525
3.5
853
175.8
978.7
FY2014E
2,858
3.5
888
183.1
1,118.8
March
ROE P/E
(x)
P/ABV
(x)
(x)
1.3
19.3 5.2
0.9
1.2
17.5 5.0
0.8
MOIL (CMP: `269/ TP: `296/ Upside:-10%)

MOIL is slated to report its 1QFY2013 today. We expect its 1QFY2013 net sales to
decrease by 5.2% yoy to `199cr mainly on account of lower manganese ore price
Market Outlook
August 7, 2012
realizations. EBITDA margin is expected to contract 1,330bp yoy to 47.0% in

1QFY2013. The net profit is expected to decrease by 14.7% yoy to `93cr. We
maintain our Accumulate rating on the stock with a target price of `296.
Y/E
Sales
OPM
March
(` cr)
(%)
FY2013E
884
FY2014E
958
PAT EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
(`)
(%)
(x)
(x)
(x)
(x)
50.2
399 23.7
15.6
11.3
1.7
5.4
2.7
50.5
424 25.2
15.1
10.7
1.5
4.7
2.4
(` cr)
Aurobindo Pharma (CMP: `113, TP: `156, Upside-38%)

Aurobindo Pharma is expected to post net sales growth of 16.8% yoy to `1,258cr,
led by formulation exports. The company's OPM is likely to remain almost same on
a yoy basis at 15.4%. Consequently, net profit is expected to decline by 51.4% to
`96cr. We maintain our Buy recommendation on the stock with a price target of
`156.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
5,243
14.6
457 11.8
11.4
9.6
1.0
7.2
0.8
FY2014E
5,767
14.6
489 12.6
10.9
9.0
0.4
6.2
0.6
Quarterly Bloomberg Brokers Consensus Estimate

Tata Chemical Ltd - Consolidated (07/08/2012)
Particulars (` cr)
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
3,121
2,924
3,398
(8)
EBITDA
515
527
(2)
541
(5)
EBITDA margin (%)
16.5
18.0
Net profit
186
200
(7)
139
34
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
1,350
1,431
(6)
1,350
EBITDA
844
1,038
(19)
844
EBITDA margin (%)
62.5
72.5
Net profit
643
791
(19)
636
2QCY12E
2QCY11
y-o-y (%)
1QCY12
q-o-q (%)
Net sales
15.9
NHPC Ltd - (07/08/2012)

Particulars (` cr)
Net sales
62.5
ABB - (08/08/2012)
Particulars (` cr)
Net sales
1,885
1,693
11
1,773
EBITDA
110
83
32
98
13
EBITDA margin (%)
5.9
4.9
Net profit
63
39
5.5
64
48
33
Market Outlook
August 7, 2012
Bharti Airtel Ltd - Consolidated (08/08/2012)

Particulars (` cr)
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
19,514
16,975
15
18,729
6,540
5,706
15
6,231
33.5
33.6
1,245
1,205
Net sales
EBITDA
EBITDA margin (%)
Net profit
33.3
3
1,008
24
Mahindra & Mahindra Ltd - (08/08/2012)

Particulars (` cr)
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
8,913
6,673
34
9,241
(4)
EBITDA
957
897
1,268
(25)
EBITDA margin (%)
10.7
13.4
Net profit
615
605
Net sales
13.7
2
874
(30)
Tata Power Ltd - Consolidated (08/08/2012)

Particulars (` cr)
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
Net sales
6,926
5,805
19
7,170
(3)
EBITDA
1,460
1,542
1,412
EBITDA margin (%)
22.3
24.3
Net profit
423
501
20.4
(16)
(572)
(174)
Power Finance Corporation Ltd (08/08/2012)

Particulars (` cr)
Net profit
1QFY13E
1QFY12
y-o-y (%)
4QFY12
q-o-q (%)
858
686
25
818
Economic and Political News
Govt. to shortly unveil path of fiscal consolidation: FM

RBI wants Govt. to simplify foreign investment regime
FM directs review of retro tax amendments
Corporate News
Power Ministry moots independent audits of transmission grids

CMIE cuts power generation forecast to 10.8% this fiscal
Sun Pharma to consider internal restructuring of business on Aug 10
Bhushan Steel to sign MoU with Odisha for iron ore supply
Piaggio to launch scooter in India by end of 2013
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
Market Outlook
August 07, 2012
Result Calendar
Date
Company
August 07, 2012
J & K Bank, NHPC, Tata Chemicals, MOIL, Aurobindo Pharma, Punj Lloyd
August 08, 2012
August 10, 2012
Bharti Airtel, M&M, Tata Power Co., Power Fin.Corpn., ABB, Goodyear, HEG, TVS Srichakra
IOC, Tata Motors, Adani Enterp., Ranbaxy, HPCL, GMR Infra., Tech Mahindra, Motherson Sumi, GSPL, ITNL, Apollo
Tyres, Anant Raj, Nagarjuna Const., Alembic Pharma, Hitachi, ITD Cementation
St Bk of India, Sun Pharma, Siemens, BPCL, Bharat Forge, Consolidated Co
August 11, 2012
ONGC, Rcom, Reliance Capital, Madhucon Proj, Godawari Ispat
August 09, 2012
August 12, 2012

August 13, 2012
August 14, 2012
Coal India, NMDC, Tata Steel, Bosch India, GSK Pharma, Suzlon Energy, India Cements
Hindalco, Reliance Power, IDFC, Nalco, Essar Oil, Reliance Infra., Unitech, HDIL, Monnet Ispat, Amara Raja Batteries,
Orchid Chemicals, Simplex Infra, Electrosteel Castings, Finolex Cables
Source: Bloomberg, Angel Research
Global economic events release calendar

Date
Country
Event Description
Unit
Period
Bloomberg Data
Last Reported
Estimated
August 07, 2012
UK
Industrial Production (YoY)
% Change
Jun
(1.60)
(5.30)
August 09, 2012
US
Initial Jobless claims
Thousands
Aug 4
365.00
370.00
China
Industrial Production (YoY)
% Change
Jul
9.50
9.70
China
Consumer Price Index (YoY)
% Change
Jul
2.20
1.70
India
Industrial Production YoY
% Change
Jun
2.40
--
August 10, 2012
China
Exports YoY%
% Change
Jul
11.30
8.20
August 14, 2012
UK
% Change
Jul
2.40
--
% Change
Jul
7.25
--
US
CPI (YoY)
Monthly Wholesale Prices
YoY%
Producer Price Index (mom)
% Change
Jul
0.10
0.20
Euro Zone
Euro-Zone GDP s.a. (QoQ)
% Change
2Q A
--
--
Germany
GDP nsa (YoY)
% Change
2Q P
1.70
--
UK
Jobless claims change
% Change
Jul
6.10
--
US
Industrial Production
Jul
0.43
0.45
US
Consumer price index (mom)
% Change
Jul
--
0.20
US
Housing Starts
Thousands
Jul
760.00
750.00
US
Building permits
Thousands
Jul
760.00
768.00
Euro Zone
Euro-Zone CPI (YoY)
Jul
2.40
--
August 22, 2012
US
Existing home sales
Millions
Jul
4.37
--
August 23, 2012
Germany
PMI Services
Value
Aug A
50.30
--
Germany
Value
Aug A
43.00
--
Value
Aug A
(21.50)
--
US
PMI Manufacturing
Euro-Zone Consumer
Confidence
New home sales
Thousands
Jul
350.00
--
UK
GDP (YoY)
% Change
2Q P
(0.80)
--
India
August 15, 2012
August 16, 2012
Euro Zone
August 24, 2012
Market Strategy
August 7, 2012
Macro watch
Exhibit 1: Quarterly GDP trends
(%)
8.0
6.7
5.9
5.3
3.7
4.0
4.3
3.4
2.7
2.5
Source: CSO, Angel Research
(6.0)
10.0
9.9
Dec-11
Nov-11
Mfg. PMI
60.0
9.8
(0.9)
Exhibit 4: Manufacturing and services PMI
(%)
9.4
(3.2)
(5.0)
Source: MOSPI, Angel Research
Exhibit 3: Monthly WPI inflation trends

12.0
Oct-11
Sep-11
Aug-11
(4.0)
Jul-11
4QFY12
3QFY12
2QFY12
1QFY12
4QFY11
3QFY11
2QFY11
1QFY11
4QFY10
3QFY10
2QFY10
(2.0)
1QFY10
3.0
4QFY09
4.0
2.4
1.0
2.0
5.0
7.7
8.0
Services PMI
58.0
9.5
6.9
7.4
7.7
7.5
7.6
7.3
56.0
Source: MOSPI, Angel Research
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Sep-11
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Exhibit 5: Exports and imports growth trends

Exports yoy growth
(%)
Jun-11
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
48.0
Nov-11
0.0
Oct-11
50.0
Sep-11
2.0
Aug-11
52.0
Jul-11
4.0
Oct-11
54.0
6.0
Aug-11
10.0
6.0
6.0
6.1
Jul-11
6.0
7.4
9.5
10.0
8.0
Jun-11
7.0
8.2
May-12
7.5
8.0
7.6
Apr-12
8.5
9.0
12.0
9.2
Mar-12
9.4
Feb-12
9.8
Jan-12
(%)
10.0
Exhibit 2: IIP trends
Exhibit 6: Key policy rates
Imports yoy growth
75.0
(%)
9.00
60.0
8.00
45.0
Repo rate
Reverse Repo rate
CRR
7.00
30.0
6.00
15.0
5.00
Source: RBI, Angel Research
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
4.00
Aug-11
Jun-12
Apr-12
Mar-12
Feb-12
Jan-12
May-12
(30.0)
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
(15.0)
Jul-11
0.0
Market Outlook
August 07, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Agri / Agri Chemical

Rallis
Neutral
124
2,409
1,466
1,686
14.8
14.8
7.0
8.1
17.7
15.3
3.8
3.2
22.6
22.5
1.7
1.5
United Phosphorus
Buy
120
170
5,541
8,421
9,263
16.5
16.5
15.0
17.0
8.0
7.1
1.2
1.0
15.6
15.5
0.8
0.7
Amara Raja Batteries
Accumulate
310
345
2,645
2,715
3,041
15.3
15.3
29.2
32.8
10.6
9.4
2.5
2.0
26.0
23.3
0.9
0.8
Apollo Tyres
Buy
79
100
3,999
13,699
15,184
10.5
10.2
12.1
13.3
6.6
6.0
1.2
1.0
19.7
18.4
0.5
0.4
Ashok Leyland
Buy
23
30
6,080
14,920
16,850
9.0
9.3
2.2
2.8
10.5
8.3
1.9
1.7
13.3
15.6
0.5
0.4
Automotive Axle
Buy
362
430
547
993
1,140
11.6
11.5
36.9
43.0
9.8
8.4
1.9
1.7
21.2
21.3
0.6
0.5
Bajaj Auto
Neutral
1,633
47,254
21,285
23,927
18.2
18.3
108.5
121.3
15.1
13.5
6.2
5.0
46.1
41.3
1.8
1.6
Bharat Forge
Buy
300
372
6,990
7,173
7,998
16.3
16.5
22.3
26.6
13.5
11.3
2.6
2.2
21.0
21.0
1.1
0.9
Bosch India
Neutral
8,926
28,026
9,106
10,255
19.4
19.3
410.2
460.3
21.8
19.4
4.8
4.0
22.1
20.4
2.7
2.3
CEAT
Buy
102
164
348
4,989
5,634
8.7
8.5
32.7
41.1
3.1
2.5
0.5
0.4
15.8
16.9
0.3
0.2
Exide Industries
Accumulate
130
149
11,016
5,899
6,771
16.0
17.0
7.4
9.1
17.6
14.2
3.1
2.7
19.0
20.2
1.5
1.3
FAG Bearings
Neutral
1,519
2,524
1,505
1,747
17.7
18.0
111.5
130.0
13.6
11.7
2.8
2.3
22.8
21.7
1.4
1.1
Hero Motocorp
Buy
1,980
2,428
39,532
26,097
29,963
15.0
15.3
139.5
151.8
14.2
13.1
6.7
5.1
54.6
44.3
1.2
1.1
JK Tyre
Buy
93
135
381
7,517
8,329
6.1
6.3
26.2
38.5
3.6
2.4
0.5
0.4
13.4
17.2
0.3
0.3
Auto & Auto Ancillary
Mahindra and Mahindra Buy
693
824
42,555
35,881
40,746
10.0
10.0
47.5
53.2
14.6
13.0
2.9
2.5
21.3
20.5
0.9
0.8
1,134
1,227
32,770
42,887
49,079
5.5
6.6
66.8
87.6
17.0
12.9
1.9
1.7
12.1
14.1
0.6
0.5
Buy
161
216
6,290
23,342
26,366
7.8
8.2
13.3
18.0
12.1
8.9
2.9
2.3
26.2
28.4
0.4
0.4
Subros
Buy
29
34
176
1,230
1,378
8.8
8.6
4.5
5.7
6.5
5.2
0.6
0.6
9.8
11.8
0.4
0.3
Tata Motors
Buy
229
305
60,938 191,303 211,004
13.0
12.9
40.7
43.8
5.6
5.2
1.9
1.6
36.0
33.1
0.4
0.4
TVS Motor
Accumulate
38
43
1,827
7,545
8,301
6.2
6.1
4.9
5.4
7.8
7.2
1.4
1.2
18.8
18.2
0.2
0.2
Maruti
Accumulate
Motherson Sumi
Capital Goods
ABB*
Sell
797
498
16,892
8,760
10,023
7.6
7.5
18.2
20.7
43.7
38.4
5.9
5.3
14.4
14.6
1.9
1.7
BGR Energy
Neutral
282
2,037
4,195
4,837
11.0
11.0
30.1
32.4
9.4
8.7
1.6
1.5
18.4
17.6
1.0
1.0
BHEL
Neutral
229
55,989
47,801
43,757
19.4
19.8
25.7
23.9
8.9
9.6
1.9
1.6
22.7
18.3
1.1
0.9
Blue Star
Neutral
192
1,731
3,047
3,328
5.4
6.9
9.6
16.2
20.0
11.9
3.9
3.2
20.7
29.7
0.7
0.5
Crompton Greaves
Accumulate
117
128
7,528
12,691
14,096
7.0
8.5
6.5
9.1
18.1
12.9
1.9
1.7
11.1
14.2
0.6
0.6
Jyoti Structures
Buy
39
67
319
2,622
2,801
10.6
11.0
10.9
13.4
3.6
2.9
0.5
0.4
13.7
14.9
0.3
0.3
KEC International
Buy
57
69
1,463
6,858
7,431
7.5
8.3
9.0
11.5
6.3
5.0
1.2
1.0
26.9
27.2
0.3
0.3
LMW
Buy
1,601
1,992
1,804
2,369
2,727
11.7
11.7
143.4
166.0
11.2
9.7
1.9
1.7
17.4
18.4
0.3
0.2
Thermax
Neutral
489
5,827
5,514
5,559
8.9
9.6
26.9
28.4
18.2
17.2
3.2
2.8
18.4
17.1
1.0
1.0
Market Outlook
August 07, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Cement
ACC
Neutral
1,315
24,692
11,220
12,896
20.0
20.6
71.1
81.2
18.5
16.2
3.3
2.9
18.1
19.0
1.9
1.6
Ambuja Cements
Neutral
185
28,397
10,205
11,659
24.6
24.2
10.8
12.0
17.0
15.3
3.6
3.2
19.7
19.8
2.4
2.0
India Cements
Neutral
85
2,609
4,364
4,791
18.9
19.1
9.2
11.4
9.2
7.5
0.7
0.7
8.0
9.5
0.5
0.5
J K Lakshmi Cements
Neutral
100
1,225
1,938
2,246
19.1
20.1
15.2
16.8
6.6
6.0
0.9
0.8
13.8
14.0
0.8
1.1
Madras Cements
Neutral
174
4,134
3,444
3,786
25.5
24.9
14.6
17.1
11.9
10.2
1.8
1.5
15.6
16.0
1.8
1.5
Shree Cements
Neutral
3,114
10,847
5,519
6,293
24.5
23.7
156.6
225.3
19.9
13.8
4.9
4.2
22.3
26.0
1.7
1.3
UltraTech Cement
Neutral
1,638
44,883
20,167
22,752
21.7
23.0
90.8
107.8
18.0
15.2
18.0
15.2
1.8
1.7
217
273
1,143
2,014
2,293
22.4
22.4
22.6
26.7
9.6
8.1
1.0
0.9
11.4
11.9
2.4
2.7
Construction
Ashoka Buildcon
Buy
Consolidated Co
Neutral
17
313
2,489
2,755
7.0
7.8
3.0
4.0
5.7
4.3
0.5
0.4
8.7
10.8
0.3
0.3
Hind. Const.
Neutral
18
1,080
4,239
4,522
9.9
11.2
(2.3)
(1.0)
(7.9)
(18.5)
1.0
1.1
(11.4)
(5.6)
1.2
1.2
IRB Infra
Buy
125
166
4,161
3,964
4,582
42.3
40.2
15.5
16.9
8.1
7.4
1.3
1.1
16.6
15.8
2.6
2.5
ITNL
Buy
173
265
3,366
6,619
7,925
23.8
23.3
22.9
27.8
7.6
6.2
1.1
1.0
15.5
16.4
2.2
2.1
IVRCL Infra
Buy
47
61
1,251
5,510
6,722
8.8
9.0
2.5
4.6
18.5
10.2
0.6
0.6
3.4
5.8
0.7
0.7
Jaiprakash Asso.
Buy
76
91
16,097
15,259
17,502
25.7
24.7
4.2
5.0
17.9
15.1
1.5
1.4
8.5
9.3
2.4
2.1
Larsen & Toubro
Accumulate
1,407
1,553
86,194
60,474
69,091
12.1
11.5
79.7
85.4
17.6
16.5
3.0
2.6
16.3
15.1
1.6
1.4
Madhucon Proj
Buy
37
56
274
2,206
2,502
10.7
10.7
4.6
4.7
8.0
7.9
0.4
0.4
5.2
5.0
0.7
0.7
Nagarjuna Const.
Neutral
39
997
5,453
6,169
8.1
8.5
1.6
1.9
23.6
20.1
0.4
0.4
1.8
2.1
0.6
0.7
Patel Engg.
Neutral
84
587
3,609
3,836
13.1
13.1
14.0
14.6
6.0
5.8
0.4
0.3
6.3
6.1
1.0
1.1
Punj Lloyd
Neutral
53
1,760
11,592
12,993
8.4
8.4
1.8
3.2
29.4
16.6
0.6
0.6
2.0
3.4
0.6
0.6
Sadbhav Engg.
Buy
133
182
2,006
2,789
3,147
10.6
10.7
8.4
10.4
15.8
12.8
2.2
1.9
15.0
15.6
0.9
0.8
Simplex Infra
Buy
204
265
1,008
6,732
7,837
8.1
8.4
23.5
29.4
8.7
6.9
0.8
0.7
9.6
11.0
0.5
0.4
Allahabad Bank
Accumulate
133
147
6,658
7,233
8,579
3.1
3.3
40.5
40.9
3.3
3.3
0.6
0.5
19.4
17.0
Andhra Bank
Neutral
100
5,571
5,225
6,024
3.3
3.3
22.7
25.4
4.4
3.9
0.7
0.6
16.0
15.8
Axis Bank
Buy
1,064
1,373
44,074
15,961
19,583
3.1
3.2
117.3
143.1
9.1
7.4
1.7
1.4
20.1
20.8
Bank of Baroda
Buy
653
851
25,580
15,830
19,300
2.6
2.7
118.9
147.1
5.5
4.4
0.9
0.8
16.7
18.0
Bank of India
Buy
288
354
16,519
13,159
15,851
2.4
2.5
61.1
71.1
4.7
4.1
0.8
0.7
16.6
17.0
Bank of Maharashtra
Neutral
Canara Bank
Buy
Central Bank
Neutral
Financials
46
2,739
3,471
3,889
3.1
3.1
9.0
11.5
5.1
4.1
0.7
0.6
13.7
15.5
362
421
16,050
11,334
13,629
2.2
2.3
75.4
85.1
4.8
4.3
0.7
0.7
15.2
15.3
71
5,260
7,181
8,365
2.5
2.7
16.3
21.8
4.4
3.3
0.8
0.7
12.7
15.1
Market Outlook
August 07, 2012
Stock Watch
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
403
454
5,965
5,067
5,998
2.1
2.3
105.6
111.0
3.8
3.6
0.7
0.6
17.6
16.3
91
107
3,200
3,177
3,595
2.8
2.8
25.2
25.4
3.6
3.6
0.6
0.6
18.9
16.4
Financials
Corporation Bank
Accumulate
Dena Bank
Buy
Federal Bank
Accumulate
411
459
7,018
2,736
3,165
3.4
3.4
49.3
57.4
8.3
7.2
1.1
1.0
13.9
14.5
HDFC
Reduce
709
671
106,703
7,340
8,805
3.5
3.5
31.5
37.8
22.5
18.8
4.5
4.0
34.8
32.2
HDFC Bank
Neutral
600
141,398
21,936
27,454
4.4
4.4
28.7
36.0
20.9
16.6
4.0
3.4
20.7
22.0
ICICI Bank
Buy
954
1,169
109,655
22,356
27,157
2.9
3.0
68.7
82.0
13.9
11.6
1.7
1.5
14.2
15.5
IDBI Bank
Buy
87
105
11,084
7,952
9,876
1.9
2.2
18.5
23.6
4.7
3.7
0.6
0.5
12.8
14.7
Indian Bank
Accumulate
176
197
7,564
6,294
7,191
3.4
3.4
40.6
44.9
4.3
3.9
0.7
0.6
18.1
17.4
IOB
Accumulate
73
84
5,846
7,473
8,732
2.5
2.5
16.7
22.6
4.4
3.2
0.5
0.5
11.8
14.4
J & K Bank
Neutral
936
4,536
2,525
2,858
3.5
3.5
175.8
183.1
5.3
5.1
1.0
0.8
19.3
17.5
LIC Housing Finance
Accumulate
257
279
12,985
1,867
2,338
2.4
2.4
21.1
28.5
12.2
9.0
2.0
1.7
17.5
20.4
Oriental Bank
Buy
235
278
6,855
6,518
7,458
2.8
2.9
61.3
65.1
3.8
3.6
0.6
0.5
15.2
14.3
Punjab Natl.Bank
Buy
743
975
25,194
20,116
23,625
3.3
3.4
152.8
173.9
4.9
4.3
0.9
0.7
18.2
18.0
South Ind.Bank
Accumulate
23
27
2,644
1,514
1,717
2.8
2.7
4.0
4.2
5.9
5.5
1.1
1.0
20.5
18.5
St Bk of India
Buy
2,018
2,443
135,430
67,783
78,208
3.7
3.6
226.0
264.2
8.9
7.6
1.4
1.2
17.7
18.1
Syndicate Bank
Buy
97
119
5,824
6,997
8,134
3.0
3.1
27.3
29.4
3.5
3.3
0.6
0.6
19.0
17.7
UCO Bank
Neutral
70
4,670
5,642
6,438
2.5
2.5
16.4
17.6
4.3
4.0
0.8
0.7
16.2
15.4
Union Bank
Buy
171
238
9,414
10,299
12,227
2.9
3.0
42.1
49.3
4.1
3.5
0.7
0.6
16.7
17.1
United Bank
Buy
58
78
2,083
3,599
4,212
2.8
3.0
18.2
22.3
3.2
2.6
0.5
0.4
15.0
16.2
Vijaya Bank
Neutral
54
2,664
2,579
3,028
2.1
2.3
8.8
11.6
6.1
4.7
0.7
0.6
11.1
13.3
Yes Bank
Buy
366
453
12,974
3,255
4,228
2.8
3.0
34.2
42.7
10.7
8.6
2.3
1.9
23.3
23.8
3,750
35,973
11,198
13,184
16.3
16.3
121.0
144.8
31.0
25.9
10.4
8.2
37.4
35.3
3.1
2.6
460
633
5,491
5,835
6,824
6.3
6.7
20.7
27.5
22.2
16.7
8.7
6.5
42.7
44.3
0.9
0.8
1,194
16,237
3,018
3,429
20.9
22.3
34.6
41.0
34.5
29.1
31.8
24.1
99.5
94.1
5.2
4.6
FMCG
Asian Paints
Neutral
Britannia
Buy
Colgate
Neutral
Dabur India
Neutral
119
20,748
6,124
7,030
17.0
16.8
4.5
5.2
26.6
23.0
11.0
8.7
43.2
41.5
3.4
2.9
GlaxoSmith Con*
Neutral
2,826
11,885
3,124
3,663
17.1
17.6
103.0
123.3
27.5
22.9
8.5
6.8
34.0
32.9
3.5
2.9
Godrej Consumer
Neutral
618
21,046
5,973
7,000
18.4
18.6
22.8
27.2
27.1
22.8
7.4
6.0
31.3
38.4
3.7
3.1
HUL
Neutral
467
100,848
25,350
28,974
13.9
13.9
14.3
16.5
32.7
28.3
19.5
15.0
70.9
59.8
3.8
3.2
ITC
Neutral
258
202,289
29,513
33,885
35.4
35.8
9.3
10.8
27.8
24.0
9.2
7.7
35.6
35.0
6.5
5.7
Market Outlook
August 07, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
( )
Price ( )
( cr )
FY13E
OPM(%)
EPS ( )
FY14E
FY13E
FY14E
FY13E
PER(x)
P/BV(x)
FY14E
FY13E
FY14E
FY13E
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FMCG
Marico
Neutral
189
12,185
4,667
5,427
12.8
12.9
6.6
8.1
28.5
23.3
7.6
6.0
30.0
28.8
2.6
2.2
Nestle*
Neutral
4,387
42,296
8,731
10,539
21.0
21.4
114.4
143.0
38.3
30.7
23.1
15.9
71.1
61.4
4.9
4.0
Tata Global
Neutral
130
8,036
7,207
7,927
9.7
10.0
6.6
7.9
19.6
16.6
2.0
1.9
8.6
9.5
1.0
0.9
HCL Tech
Accumulate
523
585
36,273
24,400
27,049
18.6
17.5
41.1
45.0
12.7
11.6
2.9
2.4
22.7
21.1
1.4
1.2
Hexaware
Buy
114
132
3,374
1,921
2,178
20.6
20.0
10.4
11.4
11.0
10.0
2.6
2.3
24.7
23.4
1.5
1.2
Infosys
Accumulate
2,214
2,530
127,109
39,151
41,743
31.6
31.9
161.9
174.5
13.7
12.7
3.3
2.8
23.8
22.1
2.6
2.4
Infotech Enterprises
Accumulate
173
187
1,927
1,889
2,065
18.0
17.5
18.0
19.7
9.6
8.8
1.4
1.2
14.5
13.7
0.7
0.5
KPIT Cummins
Neutral
119
2,122
2,149
2,331
15.6
14.8
10.7
11.2
11.1
10.6
2.3
1.9
20.6
17.8
1.0
0.8
Mahindra Satyam
Neutral
88
10,303
7,492
8,038
17.0
16.3
8.1
8.3
10.8
10.5
1.5
1.3
14.1
12.6
1.0
0.8
Mindtree
Accumulate
636
708
2,593
2,341
2,513
18.6
17.1
66.5
70.8
9.6
9.0
2.1
1.7
22.3
19.3
0.9
0.8
Mphasis
Neutral
407
8,542
5,704
6,009
18.6
17.7
36.0
37.1
11.3
11.0
1.6
1.4
14.0
12.6
1.0
0.9
NIIT
Buy
36
52
592
1,162
1,304
14.8
15.1
7.1
8.8
5.1
4.1
0.8
0.8
16.7
18.4
0.4
0.2
Persistent
Accumulate
377
398
1,508
1,193
1,278
25.6
24.3
42.6
44.3
8.9
8.5
1.5
1.3
17.2
15.5
0.9
0.8
TCS
Accumulate
1,229
1,304
240,621
61,046
67,507
29.3
29.1
67.3
72.4
18.3
17.0
5.8
4.8
31.9
28.3
3.7
3.3
Tech Mahindra
Neutral
751
9,577
6,282
6,477
17.5
16.5
82.9
85.0
9.1
8.8
2.0
1.6
21.6
18.4
1.5
1.3
Wipro
Buy
345
420
84,894
43,492
48,332
19.4
19.3
25.1
28.0
13.7
12.3
2.6
2.2
18.6
18.0
1.6
1.4
D B Corp
Buy
196
236
3,590
1,597
1,785
22.9
24.2
11.1
13.9
17.6
14.1
3.4
2.9
20.2
22.1
2.2
1.9
HT Media
Buy
87
113
2,053
2,111
2,263
15.2
15.2
7.3
8.1
11.9
10.8
1.3
1.2
11.2
11.2
0.5
0.4
Jagran Prakashan
Buy
94
112
2,979
1,506
1,687
22.5
23.2
6.2
7.0
15.2
13.4
3.6
3.3
25.0
25.7
2.2
1.9
PVR
Neutral
178
461
625
732
16.5
15.7
11.9
13.3
14.9
13.4
1.5
1.3
11.9
12.0
1.1
1.0
Sun TV Network
Neutral
282
11,111
2,002
2,296
77.1
76.7
18.9
22.1
14.9
12.8
3.8
3.3
27.7
28.3
5.0
4.2
Bhushan Steel
Neutral
472
10,021
11,979
14,584
31.6
31.0
49.2
61.4
9.6
7.7
1.3
1.1
14.1
15.2
2.8
2.4
Coal India
Neutral
344
217,093
68,841
74,509
25.3
25.3
24.1
26.1
14.3
13.2
3.9
3.2
30.4
26.8
2.3
1.9
Electrosteel Castings
Buy
19
22
656
1,984
2,074
11.2
12.6
2.0
2.7
9.3
7.0
0.4
0.1
4.2
5.5
0.5
0.5
Hind. Zinc
Buy
119
142
50,197
12,446
13,538
56.1
56.6
15.2
16.5
7.8
7.2
1.6
1.3
21.7
19.8
2.2
1.6
Hindalco
Neutral
118
22,601
83,212
91,057
9.0
9.9
13.7
18.1
8.6
6.5
0.7
0.6
7.9
9.6
0.5
0.5
JSW Steel
Neutral
709
15,808
38,740
41,459
17.3
17.0
79.9
89.4
8.9
7.9
0.9
0.8
10.4
10.6
0.8
0.8
MOIL
Accumulate
269
296
4,513
1,007
1,091
56.6
56.9
29.4
31.9
9.1
8.4
1.6
1.4
19.0
18.2
2.3
1.9
Monnet Ispat
Buy
311
447
2,003
3,115
3,748
22.1
25.1
59.1
66.8
5.3
4.7
0.7
0.6
15.6
15.3
1.4
1.0
IT
Media
Metals & Mining
Market Outlook
August 07, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
Sales ( cr )
FY13E
OPM(%)
EPS ( )
FY14E
FY13E
FY14E
FY13E
PER(x)
P/BV(x)
RoE(%)
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
EV/Sales(x)
FY14E
FY13E
FY14E
Metals & Mining

Nalco
Neutral
54
13,866
8,474
9,024
12.6
16.2
2.6
3.6
21.0
15.0
1.2
1.1
5.6
7.5
1.2
1.1
NMDC
Neutral
183
72,634
11,959
13,062
78.2
78.6
19.1
20.9
9.6
8.8
2.4
2.0
27.1
24.4
4.0
3.4
SAIL
Neutral
85
35,233
50,914
60,785
14.6
15.1
9.4
10.5
9.1
8.1
0.8
0.8
9.2
9.6
1.1
1.0
Sesa Goa
Neutral
183
15,944
7,704
8,034
33.6
34.6
42.0
43.1
4.4
4.3
0.9
0.8
22.3
19.2
0.3
Sterlite Inds
Accumulate
104
115
34,917
41,680
45,382
24.2
23.2
16.3
16.9
6.4
6.1
0.7
0.6
11.3
10.7
0.5
0.4
Tata Steel
Buy
404
499
39,266 143,088 148,011
10.9
12.1
53.9
66.0
7.5
6.1
0.9
0.8
12.2
13.4
0.6
0.6
Sarda
Buy
125
148
447
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
0.6
Cairn India
Accumulate
334
380
63,648
16,605
17,258
75.4
71.7
57.0
54.9
5.9
6.1
1.1
0.9
20.2
16.3
2.9
2.2
GAIL
Neutral
366
46,382
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
281
321
240,324 156,331 159,043
37.7
36.3
31.3
32.6
9.0
8.6
1.6
1.4
18.7
17.3
1.2
1.1
Reliance Industries
Neutral
785
257,151 362,700 380,031
Gujarat Gas
Neutral
311
Indraprastha Gas
Neutral
238
3,325
Petronet LNG
Buy
149
176
11,156
Oil & Gas
3,991
7.9
8.0
61.5
64.3
12.8
12.2
1.3
1.2
10.3
9.9
0.7
0.7
3,267
16.1
11.5
21.2
19.2
14.7
16.2
5.1
4.3
33.4
28.7
1.5
1.1
3,040
3,135
24.3
26.7
24.8
27.9
9.6
8.5
2.2
1.8
25.5
23.6
1.1
1.0
22,696
29,145
8.1
6.6
14.1
14.2
10.6
10.5
3.2
2.5
34.1
26.9
0.6
0.4
2,472
Pharmaceuticals
Alembic Pharma
Buy
65
91
1,232
1,624
1,855
14.2
15.6
6.6
9.1
9.9
7.2
2.4
1.9
27.5
29.2
1.0
0.8
Aurobindo Pharma
Buy
113
156
3,277
5,243
5,767
14.6
14.6
11.8
12.6
9.5
8.9
1.0
0.4
11.4
10.9
0.8
0.6
Aventis*
Neutral
2,207
5,083
1,482
1,682
15.5
15.5
95.0
104.0
23.2
21.2
4.1
3.2
18.6
17.0
3.2
2.8
Cadila Healthcare
Accumulate
907
953
18,575
6,196
7,443
18.5
19.5
37.6
47.7
24.1
19.0
5.4
4.3
26.8
27.5
3.0
2.4
Cipla
Accumulate
Dr Reddy's
Neutral
Dishman Pharma
Accumulate
GSK Pharma*
Neutral
Indoco Remedies
Buy
58
92
536
Ipca labs
Buy
410
475
5,177
Lupin
Accumulate
591
647
26,422
Orchid Chemicals
Buy
114
178
Ranbaxy*
Neutral
513
Sun Pharma
Neutral
671
Accumulate
304
351
399
28,215
8,031
9,130
23.4
22.4
18.4
20.0
19.1
17.6
3.2
2.7
17.8
16.6
3.3
2.9
1,658
28,135
10,696
11,662
20.7
21.0
83.7
92.9
19.8
17.8
4.1
3.5
22.4
21.0
2.7
2.5
81
92
655
1,280
1,536
17.8
17.8
9.2
11.3
8.8
7.2
0.7
0.6
7.7
8.5
1.2
1.0
2,084
17,650
2,651
2,993
31.7
31.2
76.0
82.4
27.4
25.3
7.9
6.9
30.8
29.0
5.7
4.9
685
837
15.2
15.2
7.4
8.9
7.9
6.5
1.2
1.0
15.9
16.3
0.9
0.8
2,850
3,474
20.7
20.7
29.2
36.6
14.1
11.2
3.3
2.6
26.1
26.1
2.0
1.6
8,426
10,082
19.7
20.0
27.4
32.4
21.6
18.3
5.2
4.1
27.0
25.2
3.0
2.4
802
2,117
2,434
17.7
17.7
16.7
22.2
6.8
5.1
0.6
0.6
9.5
11.5
1.0
0.9
21,666
12,046
11,980
18.0
15.8
35.7
29.8
14.4
17.2
5.4
4.4
43.1
28.1
1.8
1.8
69,385
9,272
11,080
38.6
38.0
22.7
22.6
29.6
29.7
5.0
4.4
17.9
15.6
6.1
4.8
342
3,802
5,218
5,644
24.2
23.8
44.6
47.6
6.8
6.4
0.7
0.7
11.0
10.6
1.0
1.1
Power
CESC
Market Outlook
August 07, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
Sales ( cr )
FY13E
OPM(%)
EPS ( )
PER(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
P/BV(x)
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Power
GIPCL
Buy
NTPC
Neutral
66
77
1,005
1,557
1,573
29.3
28.7
10.8
11.0
6.2
6.0
0.6
0.6
10.8
10.2
1.1
0.9
165
136,380
74,111
85,789
23.2
23.6
12.4
14.0
13.4
11.8
1.7
1.5
13.0
13.5
2.6
2.3
51
78
1,496
657
875
52.0
56.1
8.4
12.7
6.0
4.0
0.4
0.3
6.3
8.9
3.5
2.7
Real Estate
Anant Raj
Buy
DLF
Neutral
211
35,879
9,878
12,033
44.7
46.1
9.6
13.4
22.1
15.8
1.4
1.3
6.4
8.7
6.1
5.0
HDIL
Buy
83
115
3,467
2,441
3,344
55.1
48.2
22.7
26.6
3.6
3.1
0.3
0.3
8.8
9.4
3.3
2.5
MLIFE
Buy
324
396
1,322
813
901
26.2
26.6
32.0
37.1
10.1
8.7
1.1
1.0
10.4
11.0
2.0
1.7
Bharti Airtel
Neutral
296
112,464
80,076
86,613
32.8
33.5
15.5
19.8
19.2
14.9
2.0
1.8
10.5
11.9
2.1
1.8
Idea Cellular
Neutral
80
26,595
23,209
26,063
26.2
27.5
3.3
4.9
24.4
16.3
1.9
1.7
7.7
10.3
1.6
1.4
Rcom
Neutral
57
11,796
22,125
23,734
31.9
32.0
4.5
5.9
12.8
9.8
0.3
0.3
2.5
3.1
2.0
1.7
Telecom
zOthers
Abbott India
Accumulate
1,510
1,628
3,209
1,661
1,918
9.7
12.0
60.7
90.4
24.9
16.7
5.1
4.1
22.0
27.3
1.7
1.4
Bajaj Electricals
Buy
181
246
1,802
3,569
4,172
8.6
9.2
17.3
22.3
10.5
8.1
2.3
1.9
22.9
25.3
0.5
0.4
Cera Sanitaryware
Buy
296
352
374
396
470
16.7
16.5
28.0
33.2
10.6
8.9
2.2
1.8
23.8
23.1
1.1
0.9
Cravatex
Buy
619
785
160
302
364
5.7
6.0
49.0
71.0
12.6
8.7
3.8
2.7
29.8
30.7
0.6
0.5
CRISIL
Neutral
920
6,453
982
1,136
34.3
34.3
34.3
40.0
26.8
23.0
12.1
9.7
50.9
46.9
6.2
5.2
Finolex Cables
Buy
40
61
608
2,334
2,687
8.8
9.3
7.6
10.2
5.2
3.9
0.7
0.6
13.7
16.1
0.2
0.1
Force Motors
Buy
445
591
579
2,214
2,765
4.5
5.4
39.5
73.9
11.3
6.0
0.5
0.5
4.4
7.6
0.1
0.1
Goodyear India
Accumulate
329
374
760
1,511
1,692
7.9
9.0
31.5
41.3
10.5
8.0
2.1
1.7
21.2
23.5
0.3
0.2
Graphite India
Buy
82
124
1,603
2,158
2,406
18.1
18.9
12.4
14.0
6.6
5.8
0.9
0.8
14.0
14.3
0.9
0.7
Greenply Industries
Buy
189
309
457
1,925
2,235
10.6
10.9
29.6
44.1
6.4
4.3
1.0
0.9
16.8
21.0
0.5
0.4
HEG
Buy
207
242
827
1,746
1,946
16.5
17.7
22.5
32.9
9.2
6.3
0.9
0.9
10.4
14.2
1.1
1.0
Hitachi
Buy
120
160
276
857
968
6.9
8.4
10.2
16.0
11.8
7.5
1.5
1.2
12.9
17.8
0.4
0.4
Honeywell Automation
Accumulate
2,523
2,842
2,231
1,847
2,162
4.3
7.3
61.0
120.0
41.4
21.0
3.3
2.8
9.3
16.3
1.1
0.9
INEOS ABS India
Accumulate
677
744
1,190
1,056
1,081
8.1
10.6
33.8
46.5
20.0
14.6
2.8
2.4
14.7
17.5
1.1
1.0
ITD Cementation
Neutral
231
265
1,535
1,842
11.1
11.1
27.3
38.3
8.5
6.0
0.7
0.6
7.9
10.2
0.6
0.6
Jyothy Laboratories
Accumulate
131
145
2,118
1,248
1,468
9.8
10.4
5.9
7.2
22.2
18.3
3.2
2.9
15.0
16.6
2.1
1.7
MCX
Buy
1,082
1,598
5,520
610
702
65.5
67.0
67.9
79.9
16.0
13.6
4.7
3.9
29.1
28.9
6.1
4.8
MRF
Buy
10,653
12,884
4,518
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
2,992
3,337
887
1,108
18.3
18.6
95.0
120.9
31.5
24.8
16.4
13.3
57.4
59.5
3.8
3.0
Relaxo Footwears
Buy
531
684
638
1,019
1,220
11.8
12.1
48.3
62.2
11.0
8.5
2.8
2.1
28.9
28.2
0.8
0.7
Market Outlook
August 07, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
zOthers
Sintex Industries
Buy
62
79
1,680
4,751
5,189
16.3
16.6
13.6
15.8
4.5
3.9
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
26
45
766
7,279
8,290
21.0
21.0
15.0
17.6
1.7
1.5
0.2
0.2
13.7
13.9
0.7
0.6
SpiceJet
Buy
32
40
1,560
5,647
6,513
3.5
6.5
1.9
4.9
16.6
6.6
38.9
5.6
0.4
0.4
TAJ GVK
Buy
69
108
432
300
319
35.8
36.2
7.9
9.1
8.7
7.6
1.2
1.0
13.9
14.4
1.8
1.5
Tata Sponge Iron
Buy
341
424
524
787
837
16.2
17.5
58.5
66.9
5.8
5.1
0.8
0.7
14.9
15.1
0.3
0.2
TVS Srichakra
Buy
338
462
259
1,612
1,827
9.5
9.8
72.3
92.5
4.7
3.7
1.4
1.0
33.1
32.1
0.4
0.3
United Spirits
Neutral
866
11,331
10,289
11,421
13.5
14.3
31.0
42.9
27.9
20.2
2.2
2.0
8.1
10.3
1.8
1.6
Vesuvius India
Accumulate
366
413
743
628
716
16.4
16.5
29.8
34.4
12.3
10.6
2.1
1.8
18.8
18.6
1.0
0.8
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 06, 2012
Market Outlook
August 07, 2012

Market Outlook Market Outlook: Dealer's Diary

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Market Outlook

OIL & GAS

Britannia to pay royalty for using Wadia group name

Refer detailed news analysis on the following page

Net Inflows (August 3, 2012)

FII Derivatives (August 6, 2012)

Gujarat State Pet

Britannia to pay royalty for using Wadia group name

Aurobindo Pharma gets approval for Montelukast Tablets

Sadbhav Engineering emerges L1 for `378cr irrigation projects

IVRCL bags orders worth `620cr

46.1 2,277 13.4

SAIL (CMP: `85/ TP:-/ Upside :-)

6.9x FY2013 and FY2014 EV/EBITDA respectively. Hence, we maintain our

Cadila Healthcare (CMP: `908, TP: `953, Upside-5%)

Andhra Bank - (CMP: `100 / TP: - / Upside: -)

Britannia Industries (CMP: `460/TP: `633/Upside: 38%)

Lakshmi Machine Works (CMP: `1,601 / TP: Under Review)

Relaxo Footwear - (CMP `531, TP - `684, Upside: 29%)

Prakash Industries - (CMP: `60/ TP: Under review)

MOIL (CMP: `269/ TP: `296/ Upside:-10%)

realizations. EBITDA margin is expected to contract 1,330bp yoy to 47.0% in

Aurobindo Pharma (CMP: `113, TP: `156, Upside-38%)

Quarterly Bloomberg Brokers Consensus Estimate

EBITDA margin (%)

EBITDA margin (%)

NHPC Ltd - (07/08/2012)

EBITDA margin (%)

Bharti Airtel Ltd - Consolidated (08/08/2012)

Mahindra & Mahindra Ltd - (08/08/2012)

EBITDA margin (%)

Tata Power Ltd - Consolidated (08/08/2012)

EBITDA margin (%)

Power Finance Corporation Ltd (08/08/2012)

Economic and Political News

Govt. to shortly unveil path of fiscal consolidation: FM

Power Ministry moots independent audits of transmission grids

August 07, 2012

August 08, 2012

August 10, 2012

August 11, 2012

ONGC, Rcom, Reliance Capital, Madhucon Proj, Godawari Ispat

August 09, 2012

August 12, 2012

Source: Bloomberg, Angel Research

Global economic events release calendar

August 07, 2012

Industrial Production (YoY)

August 09, 2012

Initial Jobless claims

Industrial Production (YoY)

Consumer Price Index (YoY)

Industrial Production YoY

August 10, 2012

August 14, 2012

Euro-Zone GDP s.a. (QoQ)

GDP nsa (YoY)

Jobless claims change

Consumer price index (mom)

Euro-Zone CPI (YoY)

August 22, 2012

Existing home sales