Fig 19 Stocks under coverage

6 months
Current Target avg
Bloomberg Price Price Upside/ Mkt cap turnover PER (x) P/BV (x) ROE 2 Yr EPS
Sector (Analyst) Ticker (Rs) (Rs) Downside (US$m) (US$m) FY11E FY12E FY11E FY12E (FY11E) % CAGR % Rating

Banks (Suresh Ganapathy/Mudit Painuly)

22 February 2011
ICICI Bank ICICIBC IN 1,038 1,400 35% 26,377 109.40 28.7 21.8 2.2 2.1 7.9 19 Outperform
Macquarie Research

HDFC Bank HDFCB IN 2,202 2,570 17% 22,625 46.53 34.2 25.8 4.7 4.1 16.1 27 Outperform
SBI SBIN IN 2,792 2,750 -1% 39,212 174.24 14.8 13.9 2.1 1.9 15.5 5 Neutral
Axis Bank AXSB IN 1,307 Restricted Restricted 11,869 51.53 21.1 15.8 3.3 2.8 19.2 28 Restricted
Canara bank CBK IN 600 650 8% 5,433 17.94 8.1 6.0 1.7 1.3 22.5 41 Neutral
Union Bank UNBK IN 334 405 21% 3,728 6.31 8.1 8.0 1.6 1.4 21.7 11 Outperform
Punjab National Bank PNB IN 1,078 1,300 21% 7,521 9.42 8.7 7.9 1.9 1.6 24.1 18 Outperform
HDFC HDFC IN 648 775 20% 20,994 50.97 35.7 28.8 6.1 5.4 18.4 18 Outperform
Bank of Baroda BOB IN 902 1,100 22% 7,263 9.30 10.8 8.1 2.2 1.8 21.9 35 Outperform
Bank of India BOI IN 445 530 19% 5,177 15.30 14.0 9.0 1.6 1.4 12.1 -7 Outperform
IDBI IDBI IN 134 120 -11% 2,154 26.55 9.4 8.9 1.2 1.1 13.2 13 Underperform
Kotak Mahindra Bank KMB IN 412 515 25% 6,739 13.51 21.6 20.4 3.6 2.8 18.4 46 Outperform
IDFC IDFC IN 143 170 19% 4,631 27.24 17.6 16.1 2.7 2.0 16.1 24 Outperform
Reliance Capital RCAPT IN 453 600 32% 2,462 28.14 25.2 20.2 1.4 1.4 5.8 -27 Outperform
Rural Electrification RECL IN 234 309 32% 5,115 16.79 11.5 9.1 2.1 1.8 23.2 31 Outperform
Power Finance Corp POWF IN 241 362 51% 6,119 3.96 11.5 10.4 2.1 1.8 19.4 34 Outperform

Cement (Rakesh Arora/ Samidha Gehlot)

ACC ACC IN 1,002 837 -16% 4,161 11.62 17.5 17.5 3.0 2.7 17.7 -17 Underperform
Ambuja Cements ACEM IN 126 115 -9% 4,278 6.70 16.0 19.7 2.7 2.5 17.2 -12 Underperform
Grasim Industries GRASIM IN 2,327 2,488 7% 4,716 4.55 7.3 9.8 1.7 1.5 24.8 0 Outperform
Ultratech Cements UTCEM IN 961 818 -15% 5,822 7.06 10.9 16.5 2.6 2.4 26.6 -13 Underperform
India Cements ICEM IN 94 108 15% 637 4.13 9.3 46.5 0.7 0.7 8.0 -67 Outperform

Construction (Inderjeetsingh Bhatia/Abhishek Bhandari)

BHEL BHEL IN 2,113 2,337 11% 22,866 33.98 24.0 18.1 6.5 5.2 29.9 35 Neutral
Nagarjuna Construction NJCC IN 101 121 19% 571 4.35 11.0 11.8 1.2 1.1 12.2 3 Outperform
Patel Engineering PEC IN 185 201 9% 286 1.41 7.1 9.5 0.9 0.9 15.4 -20 Neutral
Larsen & Toubro LT IN 1,652 2,215 34% 22,261 60.78 18.3 22.6 4.7 4.1 19.2 19 Outperform
IVRCL Infrastructures & IVRC IN 74 134 81% 437 7.45 15.3 10.4 0.7 0.7 8.7 24 Outperform
Projects
Punj Lloyd PUNJ IN 70 56 -20% 515 12.66 (22.1) (167.4) 0.8 0.8 -15.7 77 Underperform
GMR Infrastructure GMRI IN 42 57 37% 3,569 5.42 52.0 54.1 2.2 2.1 4.4 1 Neutral
J.P. Associates JPA IN 88 92 5% 4,128 30.62 15.3 14.9 2.2 2.0 14.8 58 Neutral
ABB India ABB IN 663 492 -26% 3,106 2.55 60.2 32.2 5.4 4.7 9.3 11 Underperform
Siemens India SIEM IN 845 716 -15% 6,299 9.52 37.6 28.6 8.7 7.0 25.0 42 Neutral
Crompton Greaves India CRG IN 266 361 36% 3,773 8.07 19.8 17.7 6.8 5.2 38.0 31 Outperform
GVK Power & GVKP IN 27 60 119% 957 6.10 27.8 16.7 1.3 1.2 5.4 47 Outperform
Infrastructure
Mundra Port and SEZ MSEZ IN 144 161 12% 6,362 5.01 41.1 70.0 8.3 6.9 21.8 22 Outperform
Suzlon Energy SUEL IN 47 42 -11% 1,864 25.67 (7.6) (37.5) 1.1 1.2 -15.7 nmf Underperform

Information Technology (Nitin Mohta/Atul Soni)

Infosys Technologies INFO IN 3,096 3,750 21% 40,149 72.85 29.1 26.1 7.8 6.8 30.1 8 Outperform
TCS TCS IN 1,090 1,360 25% 49,213 40.32 32.4 26.2 10.6 9.1 37.6 28 Outperform
Wipro WPRO IN 432 540 25% 24,440 16.63 24.0 20.8 5.6 4.7 26.5 17 Outperform
HCL Technologies HCLT IN 458 615 34% 7,062 9.67 24.7 19.2 4.6 3.9 20.5 14 Outperform
Mphasis MPHL IN 652 510 -22% 3,162 6.25 13.2 13.8 4.3 3.4 38.7 7 Underperform
Rolta India RLTA IN 144 195 36% 525 3.10 9.4 8.1 1.5 1.3 16.7 0 Outperform

10
India strategy
 Fig 19 Stocks under coverage
6 months
Current Target avg
Bloomberg Price Price Upside/ Mkt cap turnover PER (x) P/BV (x) ROE 2 Yr EPS
Sector (Analyst) Ticker (Rs) (Rs) Downside (US$m) (US$m) FY11E FY12E FY11E FY12E (FY11E) % CAGR % Rating
Media (Nitin Mohta/Atul Soni)

22 February 2011
Dish TV DITV IN 59 75 28% 1,378 4.67 NA NA 16.5 32.9 212.1 58 Outperform
Zee Entertainment Z IN 119 128 7% 2,570 12.05 15.7 20.9 2.7 2.7 13.4 8 Outperform
Macquarie Research

Zee News ZEEN IN 12 18 53% 63 0.65 6.1 24.5 1.0 1.7 17.5 -49 Outperform

Metals (Rakesh Arora/Samidha Gehlot)

Hindalco HNDL IN 213 280 32% 9,001 43.37 NA 14.9 1.9 1.7 20.8 17 Outperform
NALCO NACL IN 406 293 -28% 5,884 1.08 32.6 21.6 2.5 2.3 8.0 -2 Underperform
Tata Steel TATA IN 637 863 35% 13,526 109.57 (30.6) 7.3 2.6 2.0 2.5 -10 Outperform
SAIL SAIL IN 160 173 8% 14,651 15.13 9.7 11.4 2.0 1.8 22.1 -4 Neutral
Hindustan Zinc HZ IN 1,276 1,150 -10% 11,955 4.75 13.3 12.6 3.0 2.4 24.9 25 Underperform
Sterlite Industries STLT IN 166 216 30% 12,311 29.83 13.8 12.4 1.5 1.4 12.9 10 Outperform
JSW Steel JSTL IN 920 1,200 30% 4,539 35.65 11.6 12.3 1.9 1.2 17.4 32 Outperform
Gujarat NRE Coke GNC IN 47 106 127% 522 3.40 343.3 7.6 1.9 1.6 1.2 5 Outperform
Jindal Steel & Power JSP IN 690 962 40% 14,253 22.59 18.0 14.4 6.2 4.4 40.9 23 Outperform
NMDC NMDC IN 270 241 -11% 23,654 3.26 31.2 16.6 7.5 5.6 26.5 22 Underperform

Oil & Gas (Jal Irani/Abhishek Agarwal)

Oil & Natural Gas Corp. ONGC IN 276 1,177 326% 52,283 32.98 12.2 7.3 2.3 0.6 20.2 68 Neutral
Bharat Petroleum BPCL IN 590 788 34% 4,707 18.59 13.1 11.5 1.5 1.4 11.9 71 Outperform
Hindustan Petroleum HPCL IN 337 454 35% 2,524 16.97 7.8 7.6 0.9 0.9 12.6 40 Outperform
Reliance Industries RIL IN 956 1,245 30% 69,255 130.43 17.6 13.8 2.0 1.9 12.1 16 Outperform
GAIL GAIL IN 449 572 27% 12,592 15.38 17.3 14.1 3.2 2.8 19.8 21 Outperform
Petronet LNG PLNG IN 119 101 -15% 1,968 7.61 22.2 15.1 4.0 3.3 19.0 7 Underperform
Cairn India CAIR IN 319 292 -8% 13,425 19.39 57.6 10.9 1.8 1.6 3.2 189 Neutral
Aban Offshore ABAN IN 563 800 42% 542 20.38 7.9 54.7 1.1 1.1 18.6 -16 Outperform
Indian Oil Corp IOCL IN 318 416 31% 17,088 10.98 7.2 8.9 1.5 1.3 21.9 98 Outperform
Oil India OINL IN 1,275 1,710 34% 6,779 2.86 11.7 9.8 2.2 1.9 22.6 11 Outperform

Pipes (Amit Mishra)

Jindal Saw Limited JSAW IN 212 300 42% 1,292 3.67 10.8 11.3 1.6 1.4 15.2 17 Outperform
Welspun Gujarat WLCO IN 191 250 31% 866 6.57 6.4 6.6 1.2 1.1 21.8 59 Outperform

Pharmaceuticals (Abhishek Singhal)

GlaxoSmithKline Pharma GLXO IN 2,224 2,210 -1% 4,176 1.55 32.3 27.7 9.2 8.0 30.5 17 Neutral
Ranbaxy RBXY IN 509 650 28% 4,736 14.57 12.4 10.5 3.6 2.8 11.2 76 Outperform
Sun Pharma SUNP IN 430 437 2% 9,846 9.95 33.0 23.2 5.7 4.7 14.9 10 Neutral
Dr. Reddys Labs DRRD IN 1,537 1,840 20% 5,745 15.14 131.2 22.5 6.0 5.0 20.5 47 Neutral
Cipla CIPLA IN 306 290 -5% 5,448 14.03 19.6 22.7 4.1 3.6 24.1 17 Underperform
Jubilant JOL IN 165 270 63% 584 1.52 6.7 11.1 1.1 1.1 22.5 -9 Outperform
Piramal PIHC IN 454 600 32% 2,099 16.53 19.7 16.4 5.6 4.5 32.6 26 Outperform
Glenmark GNP IN 285 470 65% 1,700 6.95 23.0 15.6 3.2 2.7 15.2 9 Outperform

Properties (Unmesh Sharma / Kumar Saurabh)

Unitech UT IN 35 70 99% 2,039 45.20 12.7 10.6 0.8 0.8 9.0 -33 Neutral
DLF DLFU IN 232 372 60% 8,695 47.03 21.7 17.4 1.3 1.3 6.6 -29 Outperform
Ansal Properties APIL IN 40 58 46% 138 1.42 9.6 NA 0.4 0.4 4.1 71 Underperform
Indiabulls Real Estate IBREL IN 110 142 29% 977 21.53 (275.8) 25.8 0.5 0.4 -0.2 99 Underperform
HDIL HDIL IN 150 316 111% 1,374 32.14 9.5 6.9 0.8 0.7 10.0 -10 Outperform
Anant Raj ARCP IN 77 157 103% 509 2.03 9.6 16.0 0.6 0.6 6.9 -17 Outperform
DB Realty DBRL IN 125 409 229% 669 5.02 12.0 8.8 1.0 0.9 13.1 -70 Outperform

11
India strategy

Jaypee Infratech JPIN IN 59 81 37% 1,831 1.09 14.9 5.5 3.7 1.6 30.4 94 Neutral
 Fig 19 Stocks under coverage
6 months
Current Target avg
Bloomberg Price Price Upside/ Mkt cap turnover PER (x) P/BV (x) ROE 2 Yr EPS
Sector (Analyst) Ticker (Rs) (Rs) Downside (US$m) (US$m) FY11E FY12E FY11E FY12E (FY11E) % CAGR % Rating
Omaxe OAXE IN 135 107 -21% 517 1.31 20.8 19.8 1.5 1.4 7.4 69 Underperform

22 February 2011
Prestige Estates PEPL IN 130 210 62% 939 NA 22.7 24.7 4.5 2.0 19.2 -70 Outperform
Phoenix Mills PHNX IN 172 270 57% 550 0.42 40.6 25.6 1.6 1.5 3.9 13 Outperform
Macquarie Research

Sobha Developers SOBHA IN 257 430 67% 558 2.06 18.8 13.0 1.5 1.3 9.6 16 Outperform

Consumer (Amit Mishra/Priya Ranjan)

Emami HMN IN 378 550 45% 1,275 1.46 84.6 23.7 9.1 8.4 39.3 60 Outperform
Shree Renuka Sugars SHRS IN 80 105 31% 1,187 21.60 NA NA 2.3 1.8 36.4 113 Outperform
ITC ITC IN 158 200 26% 27,034 28.91 29.0 24.1 8.4 7.6 29.2 22 Outperform
Hindustan Unilever HUVR IN 280 235 -16% 13,529 16.28 29.1 27.6 22.9 19.8 86.7 -6 Underperform
Dabur DABUR IN 97 118 22% 3,720 4.60 33.2 27.3 15.4 11.8 53.1 25 Outperform
Marico Industries MRCO IN 125 145 16% 1,699 1.94 33.0 25.2 11.7 9.1 43.6 22 Outperform

Autos (Amit Mishra)

Bajaj Auto BJAUT IN 1,336 1,190 -11% 8,566 21.91 22.7 16.3 13.2 8.7 76.4 73 Underperform
Hero Honda HH IN 1,439 1,630 13% 6,358 26.71 12.9 13.1 8.3 6.0 61.3 31 Underperform
Tata Motors TTMT IN 1,162 1,500 29% 15,700 100.85 23.3 9.4 7.3 3.9 21.3 nmf Outperform
Ashok Leyland AL IN 51 91 80% 1,489 8.19 15.9 10.1 1.8 1.6 11.8 81.7 Outperform
Mahindra & Mahindra MM IN 651 820 26% 8,844 33.24 17.6 14.4 4.7 3.8 30.9 73.7 Outperform
Maruti Suzuki MSIL IN 1,207 1,050 -13% 7,750 13.41 14.0 15.2 3.0 2.5 23.8 30.3 Underperform

Power (Jeff Evans)

NTPC NATP IN 177 248 40% 32,221 13.93 16.5 15.4 2.3 2.1 14.7 8 Outperform
Tata Power TPWR IN 1,250 1,553 24% 6,571 9.37 14.8 15.2 2.6 2.4 19.7 20 Outperform
Reliance Power RPWR IN 114 127 11% 7,099 12.79 40.1 38.9 1.9 1.4 4.8 nmf Underperform
Adani Power ADANI IN 123 145 18% 5,927 4.32 157.0 50.2 4.6 4.2 2.9 nmf Outperform
Power Grid Corporation PWGR IN 99 100 1% 10,114 20.71 20.4 18.1 2.6 2.2 14.0 14 Neutral
JSW Energy JSW IN 75 89 18% 2,736 4.81 16.5 13.1 2.6 2.2 23.8 0 Neutral
Lanco Infra LANCI IN 39 Restricted Restricted 2,091 7.83 159.5 14.2 2.8 2.4 17.5 45 Restricted
Source: Bloomberg, Macquarie Research, February 2011; Prices as of February 21, 2011

12
India strategy