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Market Outlook

October 16, 2012

Dealers Diary
The Indian markets are expected to open flat with positive bias tracking positive
opening in most of the Asian markets with exporters and banks notably advancing
after some surprisingly strong U.S. economic data and earnings.

Domestic Indices

BSE Sensex
Nifty

Chg (%)

0.2

(Pts)

(Close)

38.4 18,714

(0.6)

(32.0)

5,676

MID CAP

0.1

4.2

6,681

The U.S. markets closed higher yesterday, buoyed by strength in the healthcare
and bank sectors after data showed some improvement in the economy and
Citigroup Inc. reported core earnings that topped analyst expectations. In the U.S.,
an economic report showed that retail sales increased by 1.1% in September
(expectation 0.7%) following a revised 1.2% increase in August. A separate report
showed that its index of New York manufacturing increased in October compared
to the previous month but remained in negative territory. Positive sentiment was
also generated by the release of benign inflation data from China, which
generated some optimism about the possibility of further stimulus.

SMALL CAP

0.4

30.5

7,140

BSE HC

0.3

24.6

7,595

BSE PSU

0.1

4.6

7,424

BANKEX

0.4

48.6 13,135

AUTO

(0.3)

(30.7) 10,244

METAL

(0.1)

Meanwhile the Indian markets reversed early losses to end modestly higher
yesterday, supported by firm European cues on hopes that Spain is getting closer to
asking a bailout. India's headline inflation rate came in at 7.81% for September, a
10-month high.

Dow Jones

0.7

95.4 13,424

NASDAQ

0.7

20.1

3,064

FTSE

0.2

12.3

5,806

Nikkei

0.5

43.8

8,578

Markets Today

Hang Seng

0.1

11.8 21,148

The trend deciding level for the day is 18,679 / 5,677 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 18,761 18,809 / 5,704 5,720 levels. However, if NIFTY trades below
18,679 / 5,677 levels for the first half-an-hour of trade then it may correct up to
18,631 18,549 / 5,661 5,635 levels.

Straits Times

0.0

1.3

3,043

(0.3)

(6.2)

2,099

Chg (%)

(Pts)

(Close)

INFY

(0.1)

(0.0)

$44.6

Indices

S2

S1

PIVOT

R1

R2

WIT

(1.1)

(0.1)

$8.5

SENSEX

18,549

18,631

18,679

18,761

18,809

IBN

(1.3)

(0.5)

$40.0

NIFTY

5,635

5,661

5,677

5,704

5,720

HDB

(0.4)

(0.2)

$37.7

OIL & GAS


BSE IT
Global Indices

Shanghai Com
Indian ADRs

(9.3) 10,611

0.5

45.3

8,589

(0.8)

(43.8)

5,685

(Pts)

(Close)

Chg (%)

News Analysis

WPI inflation expectedly rises to 7.81%


TTMTs global sales down 3.4% yoy in September 2012
JSW Steel Crude steel production for September 2012 and 2QFY2013
2QFY2013 Result Review: Reliance Industries, Axis Bank
2QFY2013 Result Preview: Shree Cement, MindTree

Advances / Declines

BSE

NSE

Advances

1,494

655

Declines

1,353

843

134

77

Unchanged

Refer detailed news analysis on the following page

Volumes (` cr)

Net Inflows (October 12, 2012)


` cr

Purch

Sales

Net

MTD

YTD

FII

3,399

2,411

988

9,020

92,801

473

472

(1,760)

(14,392)

MFs

FII Derivatives (October 15, 2012)


` cr

Purch

Sales

Net

Open Interest

Index Futures

1,523

1,239

284

15,271

Stock Futures

884

855

28

30,757

Gainers / Losers
Gainers
Company

Losers

Price (`)

chg (%)

Price (`)

chg (%)

Syndicate Bank

120

4.5

TTK Prestige

3,146

(5.1)

Godrej Industries

291

3.8

Maruti Suzuki

1,338

(2.5)

Sun TV Network

365

3.7

Aurobindo Pharma

156

(2.4)

Motherson Sumi

155

3.5

Federal Bank

472

(2.3)

Oberoi Realty

269

3.3

Glenmark Pharma

411

(2.3)

www.angelbroking.com

Company

BSE

1,831

NSE

8,599

Market Outlook
October 16, 2012

WPI inflation expectedly rises to 7.81%


Wholesale Price Index (WPI) inflation for the month of September 2012 surged to a
tenmonth high, remaining sticky above the 7% level despite a high base. Inflation
expectedly inched up to 7.81% during September 2012 as compared to 7.55% in
August 2012 and 10.0% in September 2011. The rise in headline inflation is
primarily driven by fuel inflation on account of the hike in fuel prices.
Inflation for the month of July 2012 has been revised upwards significantly to
7.52% as compared to provisional estimate of 6.87% due to revision in electricity
tariff which led fuel and power inflation to increase to 8.32% as compared to
5.98% reported earlier.
Primary Articles inflation eased to 8.77% in September 2012 as compared to
10.08% during August 2012. Inflation in food articles moderated for the third
straight month to 7.86% as compared to 9.14% in the previous month. Fuel and
Power inflation surged to 11.88% in September 2012 from 8.32% in the previous
month reflecting the impact of hike in fuel price to some extent. Inflation in
Manufactured Products, having the highest weightage in the WPI, rose to 6.26%
during the month as compared to 6.14% in August 2012 and 8.0% in the
corresponding period of the previous year.
On a positive note, inflation in Manufactured Products, on a m-o-m basis,
increased by merely 0.54% (and 0.07% on a m-o-m annualized basis) indicating
that demand-side pressures are in check. Also, core inflation witnessed stability
during the month at around 5.5%.
In our view, in light of the overall high headline inflation, it would be difficult for
the RBI to have a meaningful change in stance towards being dovish. The recent
reforms by the government have been cited as grounds for the RBI to cut rates in
the upcoming policy. While we do not rule out the possibility of such a cut, we do
believe that for the fiscal year as a whole rate cuts are unlikely to be more than 25
50bps. We believe that the RBIs tone is likely to be largely hawkish and its
vigilance on inflation is likely to continue in the near-term.

TTMTs global sales down 3.4% yoy in September 2012


Tata Motors (TTMT) reported a 3.4% yoy decline in total global wholesale volumes
for September 2012 to 103,656 units due to a 12% yoy decline in global
passenger vehicle (PV) volumes. Sequentially, total volumes increased by 6.6%
primarily on account of a 9.3% improvement in global commercial vehicle (CV)
sales. Global PV volumes registered a poor performance as domestic PV segment
reported sluggish volumes. Jaguar - Land Rover (JLR) too, posted lower-thanexpected volumes with total JLR sales witnessing a decline of 4.3% yoy (up 10%
yoy) to 26,461 units. The poor JLR performance was due to 49.2% yoy decline in
Jaguar volumes to 2,808 units (down 5.1% mom) and also on account of lower
production of Range Rover which is set to be re-launched later this year. Land
Rover sales on the other hand posted an in-line growth of 7% yoy (strong 12.1%
mom) to 23,653 units. On the retail front however, JLR volumes continue to

remain strong and registered a 22% yoy growth driven by 51% growth in
China and 21% growth in North America. While retail sales of Jaguar declined
7% yoy; Land Rover posted a robust 31% yoy growth on the back of the growth
in Evoque.

www.angelbroking.com

Market Outlook
October 16, 2012

While the JLR volume growth is expected to remain under pressure ahead of the
launch of the new Range Rover, we expect volumes to gain traction post the launch
and it will help the company record ~14% volume growth in FY2013. Further,
strong growth in China (sales up 98% in FY2012) will also benefit the overall
volume growth of JLR. At the current market price of `269, the stock is trading at
6.1x and 3.3x FY2014E earnings and EV/EBITDA, respectively. We maintain our
Buy rating on the stock with a SOTP based target price of `316.

JSW Steel Crude steel production for September 2012 and


2QFY2013
JSW Steel reported robust Crude steel production for September 2012 and
2QFY2013. Crude steel production for the month of September increased 54.0%
yoy to 0.73mn tonnes. The high production growth was mainly due to lower base
effect as 2QFY2012 production was affected on account of Supreme Court ban on
mining in Karnataka. The rolled long production increased by 47.0% yoy to
0.15mn tonnes whereas the rolled flat production increased 15.0% yoy to 0.45mn
tonnes due to shutdown of its hot strip mill for capacity expansion in last week of
September. For 2QFY2013 the crude steel production grew by 25.0% yoy 2.1mn
tonnes. The rolled long production increased by 29.0% yoy to 0.44mn tonnes
whereas the rolled flat production increased by 12.0% yoy to 1.45mn tonnes. The
companys crude steel production for 1HFY2013 grew 26.0% yoy to 4.31mn
tonnes. We maintain our Neutral rating on the stock.

Result Review
Reliance Industries (CMP: `823 / TP: - / Upside :-)
Reliance Industries (RIL) 2QFY2012 net sales were lower than our expectations
while net profit was above our estimates on account of higher-than-expected other
income. Net sales increased by 15.0% yoy to `90,335cr, below our estimate of
`93,934cr. Net sales growth was mainly driven by Petrochemicals segment
(+4.7% yoy to `22,058cr) and Refining segment (+23.1% yoy to `83,878cr). RILs
EBITDA decreased by 21.7% yoy to `7,705cr on account of decrease in profits
from Petrochemical segment where EBIT decreased 28.2% yoy to `1,740cr and Oil
and Gas segment where EBIT decreased 43.4% yoy to `866cr during the quarter.
Depreciation expense (including depletion and amortization) decreased by 23.3%
yoy to `2,277cr mainly due to lower oil and gas production. Gross refining
margins stood at US $9.5/bbl in 2QFY2013 compared to US$10.1/bbl in
2QFY2012 and US$7.6/bbl in 1QFY2013. Production from KG-D6 stood at 93bcf
compared to 147bcf in 2QFY2012. Other income increased 91.7% yoy to
`2,112cr (higher than our estimate of `1,900cr) which resulted in net profit
decreasing by only 5.7% yoy to `5,373cr, above our estimate of `5,013cr.
RIL has lowered its capex estimate for developing areas in its KG D6 block by
US$3bn on account of unexpected fall in reserves. We maintain our view Neutral
view on the stock.

www.angelbroking.com

Market Outlook
October 16, 2012

Y/E

Sales

OPM

PAT

EPS

ROE

P/E

P/BV EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

(x)

(x)

(x)

FY2013E

362,700

7.9 18,251

61.5

10.3

13.3

1.3

8.6

0.7

FY2014E

380,031

8.0 19,050

64.3

9.9

12.7

1.2

7.9

0.6

Axis Bank - (CMP: `1,119 / TP: `1,326 / Upside: 18.4%)


In its 2QFY2013 results, Axis Bank reported a growth of 22.1% on the
earnings front, which was in-line with estimates. The growth in net interest
income was in-line with our expectation at 15.9% yoy to `2,327cr, while the
growth in non-interest income came in unexpectedly strong at 29.0% yoy to
`1,593cr. Operating profits grew by a healthy 22.7% yoy to `2,178cr. The
bank reported a marginal increase of ~3bp in gross NPA ratio and net NPA
ratio to 1.1% and 0.33%, respectively. However, provisioning expenses for the
bank grew unexpectedly by 25.6% yoy to `509cr, which aided the banks PCR
to improve by ~100bp to 80%.
The stock is currently trading at attractive valuations of 1.5x FY2014E ABV
more than 50% discount to HDFC Bank, despite similar earnings quality,
profitability and growth expectations over FY2013-14. Hence, we maintain our
Buy recommendation on the stock with a target price of `1,326.
Y/E
March

Op. Inc

NIM

PAT

EPS

ABV

ROA

(` cr)

(%)

(` cr)

(`)

(%)

(x)

ROE P/E
(x)

P/ABV

(x)

(x)

FY2013E

15,425

3.1

4,947

115.9

630.3

1.6

19.9 9.6

1.8

FY2014E

18,500

3.2

5,871

137.5

736.4

1.6

20.1 8.0

1.5

Result Preview
Shree Cement (CMP: `4,080 / TP: - / Upside: -)
Shree Cement is expected to declare its 1QFY2013 results today. The company is
expected to post a top-line growth of 46.1% yoy to `1,249cr driven by strong
performance of both cement and power businesses. The revenue of the cement
business is expected to go up by 36.8% yoy to `1,160cr, both on account of
volume growth and better realizations. The revenue of the power business too is
expected to grow multi-fold to `89cr (vs `6.9cr in 1QFY2012) aided by higher
capacity. The OPM is expected to grow by 431bp yoy to 27.8% aided by better
cement realization. The bottom-line is expected to grow by 266.4% yoy to `145cr
aided by strong operational performance. We maintain our Neutral view on the
stock.
Y/E

Sales

OPM

PAT

EPS

RoE

P/E

P/BV

EV/EBITDA

EV/Tonne*

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

(x)

(x)

(US $)

FY2013E

5,630

29.5

775

223

25.3

18.3

4.2

6.6

138

FY2014E

6,187

27.9

903

259

23.8

15.7

3.4

5.6

Note: * computed on TTM basis

www.angelbroking.com

Market Outlook
October 16, 2012

MindTree (CMP: `680 / TP: `772 / Upside: 13%)


MindTree is slated to announce its 2QFY2013 results today. We expect the
company to post revenue of US$106.7mn, up 1.1% qoq. In rupee terms, the
revenue is expected to come in at `587cr, up 4.2% qoq, aided by INR depreciation
against USD. EBITDA margin is expected to expand by 19bp qoq to 21.0%. PAT is
expected to come in at `72cr, down by 18.6% qoq, due to hedging losses. We
maintain Accumulate rating on the stock with a target price of `772.
Y/E

Sales

OPM

PAT

EPS

ROE

P/E

P/BV

EV/EBITDA

EV/Sales

March

(` cr)

(%)

(` cr)

(`)

FY2013E

2,334

19.5

290

70.4

(%)

(x)

(x)

(x)

(x)

23.3

9.7

2.2

4.8

0.9

FY2014E

2,481

17.6

310

77.2

20.4

8.8

1.8

4.5

0.8

Quarterly Bloomberg Brokers Consensus Estimate


HCL Tech Ltd - Consolidated (17/10/2012)
Particulars (` cr)

1QFY13E

1QFY12

y-o-y (%)

4QFY12

q-o-q (%)

Net sales

6,135

4,651

31.9

5,919

3.6

EBITDA

1,218

795

53.2

1,301

(6.4)

EBITDA margin (%)

19.8

17.1

Net profit

785

497

57.8

854

(8.1)

3Q CY12E

3Q CY11

y-o-y (%)

2Q CY12

q-o-q (%)

2,576

2,283

13

2,919

(12)

EBITDA

467

317

47

690

(32)

EBITDA margin (%)

18.1

13.9

Net profit

330

159

108

415

(20)

3Q CY12E

3Q CY11

y-o-y (%)

2Q CY12

q-o-q (%)

2,176

1,805

21

2,566

(15)

EBITDA

532

319

67

735

(28)

EBITDA margin (%)

24.4

17.7

Net profit

337

171

97

469

(28)

y-o-y (%)

1QFY13

q-o-q (%)

22.0

ACC Ltd - (18/10/2012)


Particulars (` cr)
Net sales

23.6

Ambuja Cement Ltd - (18/10/2012)


Particulars (` cr)
Net sales

28.6

Hindustan Zinc Ltd - (18/10/2012)


Particulars (` cr)

2QFY13E

2QFY12

Net sales

2,750

2,593

2,713

EBITDA

1,428

1,465

(3)

1,429

(0)

51.9

56.5

1,393

1,345

EBITDA margin (%)


Net profit

www.angelbroking.com

52.7
4

1,581

(12)

Market Outlook
October 16, 2012

Economic and Political News

GoM may finalize land acquisition bill tomorrow


Government allows free export of sugar in 2012-2013
Indirect tax collections grow 15.6% in Apr-Sep
SC refuses to stay FDI policy in retail

Corporate News

GAIL Gas, Vadodara Gas JV to help expand city gas distribution network
ICICI Bank signs MoU with Africa's Ecobank
Mahindra Satyam inks pact with UPES
ONGC eyes stake in Canada's Athabasca oil sands
RIL looks to expand refining capacity
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint

www.angelbroking.com

Market Outlook
October 16, 2012

Result Calendar
Date

Company

October 16, 2012

Mindtree

October 17, 2012

HCL Tech, CRISIL, Infotech Enterprises

October 18, 2012

Hind. Zinc, Ambuja Cements, ACC, D B Corp, Persistent


TCS, ITC, Mundra Port, Adani Power, Petronet LNG, Exide Industries, Zee Entertainment, South Ind.Bank, Blue Star,
NIIT, Alembic Pharma, Tata Sponge
Bajaj Auto, UltraTech Cement, Indian Bank, Federal Bank, J K Lakshmi Cements, Force Motors

October 19, 2012


October 20, 2012
October 21, 2012
October 22, 2012

HDFC, Larsen & Toubro, Cairn India, Idea Cellular, Bank of Baroda, Syndicate Bank, Indiabulls Fin.

October 23, 2012

Hero Motocorp, Sterlite Inds, Lupin, Yes Bank, United Phosphorus, Bank of Maharashtra

October 24, 2012


October 25, 2012

Adani Enterp., M&M, Kotak Mah. Bank, Asian Paints, Ipca labs, Bajaj Electrical

October 26, 2012

NTPC, ICICI Bank, GAIL, Punjab Natl.Bank, IDFC, Dabur India, United Bank, Hind. Const.

October 27, 2012


October 28, 2012

JSW Steel

October 29, 2012

Colgate

Source: Bloomberg, Angel Research

Global economic events release calendar


Date

October 16, 2012

October 17, 2012

October 18, 2012

Country

Event Description

Unit

Period

Bloomberg Data
Last Reported

Estimated

UK

CPI (YoY)

% Change

Sep

2.50

2.20

Euro Zone

Euro-Zone CPI (YoY)

Sep

2.60

2.70

US

Industrial Production

Sep

(1.16)

0.20

US

Consumer price index (mom)

% Change

Sep

0.60

0.50

US

Housing Starts

Thousands

Sep

750.00

770.00

US

Building permits

Thousands

Sep

801.00

810.00

UK

Jobless claims change

% Change

Sep

(15.00)

--

US

Initial Jobless claims

Thousands

Oct 13

339.00

365.00

China

Industrial Production (YoY)

% Change

Sep

8.90

9.00

% Change

3Q

7.60

7.40

Millions

Sep

4.82

4.75

Value

Oct A

(25.90)

--

Value

Oct A

49.70

--

Value

Oct A

47.40

--

Thousands

Sep

373.00

381.00

China

Real GDP (YoY)

October 19, 2012

US

October 23, 2012

Euro Zone

October 24, 2012

Germany

Existing home sales


Euro-Zone Consumer
Confidence
PMI Services

Germany

PMI Manufacturing

US

New home sales

US

FOMC rate decision

Oct 24

0.25

--

October 25, 2012

UK

GDP (YoY)

% Change

3Q A

(0.50)

--

October 26, 2012

US

GDP Qoq (Annualised)

3Q A

1.30

1.80

October 30, 2012

US

Consumer Confidence

Oct

70.30

--

India

RBI Repo rate

% Change
S.A./
1985=100
%

Oct 30

8.00

--

India

RBI Cash Reserve ratio

Oct 30

4.50

--

India

RBI Reverse Repo rate

Oct 30

7.00

--

October 31, 2012

Germany

Unemployment change (000's)

Thousands

Oct

9.00

--

November 01, 2012

UK

PMI Manufacturing

Value

Oct

48.40

--

China

PMI Manufacturing

Value

Oct

49.80

--

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Strategy
October 16, 2012

Macro watch
Exhibit1: Quarterly GDP trends

Exhibit2: IIP trends

(%)

(%)

10.0

8.0

9.2

9.0

8.5

9.0

7.6

7.5

8.0

8.2

6.0
6.0

8.0
6.7

6.1

5.7

5.3 5.5

5.0

(6.0)

Aug-12

Jul-12

Jun-12

May-12

Apr-12

Mar-12

(1.8)

(5.0)

Mfg. PMI

Services PMI

58.0

9.5
7.7

8.0

Feb-12

(2.8)

(4.0)

60.0
9.9

(0.2)

Exhibit4: Manufacturing and services PMI

(%)
10.0

(1.3)

Source: MOSPI, Angel Research

Exhibit3: Monthly WPI inflation trends

10.0

Jan-12

Dec-11

1QFY13

4QFY12

3QFY12

2QFY12

1QFY12

4QFY11

3QFY11

2QFY11

1QFY11

4QFY10

3QFY10

2QFY10

1QFY10

4QFY09

Nov-11

(2.0)

Source: CSO, Angel Research

6.9

7.4

7.7

7.5

7.6

7.6

6.9

7.6

56.0

Source: MOSPI, Angel Research

Sep-12

Aug-12

Jul-12

Jun-12

May-12

Apr-12

Mar-12

Feb-12

Jan-12

Dec-11

Nov-11

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

Exhibit5: Exports and imports growth trends


(%)

Sep-11

Aug-12

Jul-12

Jun-12

May-12

Apr-12

Mar-12

Feb-12

48.0

Jan-12

0.0

Dec-11

50.0

Nov-11

2.0

Oct-11

52.0

Sep-11

4.0

Oct-11

54.0

6.0

Exhibit6: Key policy rates

60.0

(%)
9.00

45.0

8.00

30.0

7.00

Exports yoy growth

Imports yoy growth

Repo rate

Reverse Repo rate

CRR
8.00
7.00

6.00
4.50

5.00

Source: Bloomberg, Angel Research

www.angelbroking.com

Source: RBI, Angel Research

Aug-12

Jul-12

Jun-12

May-12

Apr-12

Mar-12

Feb-12

Jan-12

Dec-11

Nov-11

Jul-12

Jun-12

May-12

Apr-12

Mar-12

Feb-12

4.00

Sep-11

(30.0)

Jan-12

Dec-11

Nov-11

Oct-11

Sep-11

Aug-11

0.0

Sep-12

15.0

(15.0)

1.0

3.5

3.0

12.0

2.5

2.7

2.5

2.0

Oct-11

4.0

4.3
2.7

Oct-11

6.0

4.0

Sep-11

7.0

Market Outlook
October 16, 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

145

2,824

1,466

1,686

14.8

14.8

7.0

8.1

20.7

17.9

4.4

3.8

22.6

22.5

2.0

1.7

United Phosphorus

Buy

126

170

5,804

8,421

9,263

16.5

16.5

15.0

17.0

8.4

7.4

1.2

1.1

15.6

15.5

0.8

0.7

Amara Raja Batteries

Neutral

220

3,760

2,844

3,275

15.4

15.6

15.9

18.8

13.9

11.7

3.6

2.8

28.9

26.9

1.2

1.1

Apollo Tyres

Accumulate

86

99

4,345

13,412

15,041

11.3

11.0

12.1

14.2

7.1

6.1

1.3

1.1

19.6

19.2

0.5

0.4

Ashok Leyland

Buy

24

30

6,306

14,920

16,850

9.0

9.3

2.2

2.8

10.9

8.6

2.0

1.8

13.3

15.6

0.5

0.5

Automotive Axle#

Neutral

388

586

993

1,140

11.6

11.5

36.9

43.0

10.5

9.0

2.1

1.8

21.2

21.3

0.7

0.5

Bajaj Auto

Neutral

1,751

50,658

21,285

23,927

18.2

18.3

108.5

121.3

16.1

14.4

6.7

5.4

46.1

41.3

2.1

1.8

Bharat Forge

Accumulate

295

351

6,878

7,004

7,985

16.2

16.4

20.3

25.1

14.5

11.8

2.7

2.3

20.0

20.9

1.2

1.0

Bosch India*

Neutral

8,731

27,413

8,793

10,294

17.4

18.5

348.3

435.8

25.1

20.0

4.9

4.0

19.4

20.1

2.8

2.3

CEAT

Buy

122

164

416

4,989

5,634

8.7

8.5

32.7

41.1

3.7

3.0

0.5

0.5

15.8

16.9

0.3

0.2

Exide Industries

Neutral

151

12,861

5,913

6,787

16.0

17.0

7.4

9.2

20.5

16.5

3.7

3.1

19.1

20.3

1.9

1.6

FAG Bearings*

Neutral

1,774

2,947

1,505

1,768

17.5

18.0

111.2

132.7

15.9

13.4

3.3

2.7

22.8

22.2

1.7

1.4

Hero Motocorp

Accumulate

1,770

2,077

35,354

24,941

28,706

15.0

15.5

122.5

134.0

14.5

13.2

6.3

5.0

49.6

42.2

1.2

1.0

JK Tyre

Buy

112

135

458

7,517

8,329

6.1

6.3

26.2

38.5

4.3

2.9

0.5

0.5

13.4

17.2

0.3

0.3

Auto & Auto Ancillary

Mahindra and Mahindra Accumulate

857

944

52,643

37,434

42,860

11.6

11.5

50.4

56.3

17.0

15.2

3.6

3.0

22.6

21.5

1.2

1.0

Maruti

Neutral

1,338

38,662

41,796

49,350

7.6

8.6

66.6

92.6

20.1

14.5

2.3

2.0

12.0

14.8

0.7

0.6

Motherson Sumi

Neutral

155

9,083

24,285

27,317

6.7

7.2

8.1

10.6

19.2

14.6

4.0

3.3

22.9

24.7

0.5

0.5

Subros

Buy

31

34

184

1,230

1,378

8.8

8.6

4.5

5.7

6.8

5.4

0.7

0.6

9.8

11.8

0.4

0.3

Tata Motors

Buy

269

316

71,785 195,096 219,428

12.8

13.0

39.0

44.9

6.9

6.0

2.0

1.5

32.6

28.8

0.4

0.4

TVS Motor

Buy

42

49

1,983

7,611

8,443

7.9

7.9

4.7

5.4

8.9

7.7

1.5

1.3

17.9

18.1

0.2

0.2

ABB*

Sell

786

593

16,651

8,760

10,023

6.2

8.7

14.5

24.7

54.4

31.8

6.0

5.2

11.6

17.6

1.9

1.7

BGR Energy

Neutral

278

2,006

3,669

4,561

11.0

11.0

24.7

29.6

11.3

9.4

1.7

1.5

15.3

16.7

1.1

1.0

BHEL

Neutral

249

60,982

47,801

43,757

19.0

18.8

25.3

22.8

9.9

10.9

3.0

2.5

34.3

25.3

1.1

1.2

Blue Star

Neutral

211

1,895

3,047

3,328

5.4

6.9

12.5

16.2

16.9

13.0

4.1

3.3

26.1

28.2

0.6

0.5

Crompton Greaves

Accumulate

138

141

8,837

12,691

14,126

7.4

8.9

7.0

9.7

19.7

14.2

2.3

2.0

11.9

15.0

0.7

0.6

Jyoti Structures

Buy

47

54

384

2,622

2,744

10.7

10.5

9.6

12.2

4.9

3.8

0.5

0.5

10.8

12.3

0.4

0.3

KEC International

Accumulate

69

78

1,770

6,858

7,431

7.1

7.5

8.3

9.8

8.3

7.1

1.4

1.2

25.1

24.0

0.4

0.4

LMW

Neutral

1,981

2,231

2,369

2,727

11.7

11.7

143.4

166.0

13.8

11.9

2.3

2.1

17.4

18.4

0.5

0.4

Thermax

Neutral

566

6,740

5,514

5,559

8.9

10.2

26.9

30.3

21.1

18.7

3.6

3.2

18.4

18.2

1.1

1.0

Capital Goods

www.angelbroking.com

Market Outlook
October 16, 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

1,489

27,952

10,964

12,417

21.6

21.5

76.9

82.2

19.4

18.1

3.7

3.3

19.5

19.1

2.2

1.9

Ambuja Cements

Neutral

215

33,057

10,163

11,729

25.4

24.9

11.2

12.5

19.2

17.2

4.1

3.7

20.3

20.5

2.7

2.2

India Cements

Neutral

101

3,112

4,354

4,929

18.6

18.7

9.8

12.3

10.3

8.2

0.9

0.8

8.6

10.2

1.1

1.0

J K Lakshmi Cements

Neutral

118

1,443

1,964

2,278

19.5

20.4

16.3

17.9

7.2

6.6

1.1

0.9

14.7

14.6

0.9

1.2

Madras Cements

Neutral

188

4,471

3,608

3,928

27.6

27.0

15.7

18.3

11.9

10.3

1.9

1.6

16.9

17.0

1.9

1.6

Shree Cements^

Neutral

4,080

14,214

5,630

6,187

29.6

27.9

222.5

259.3

18.3

15.7

4.2

3.4

25.3

23.8

1.9

1.5

UltraTech Cement

Neutral

2,041

55,955

20,913

23,530

21.3

22.7

93.2

110.5

21.9

18.5

3.7

3.2

18.4

18.7

2.5

2.3

229

304

1,206

2,034

2,315

22.4

22.4

27.1

31.7

8.5

7.2

1.0

0.9

13.1

13.4

1.8

2.1

Construction
Ashoka Buildcon

Buy

Consolidated Co

Neutral

14

266

2,262

2,522

6.7

7.5

1.5

2.7

9.7

5.4

0.4

0.4

4.4

7.5

0.4

0.4

Hind. Const.

Neutral

18

1,113

4,239

4,522

9.9

11.2

(2.3)

(1.0)

(8.1)

(19.0)

1.0

1.1

(11.4)

(5.6)

1.2

1.2

IRB Infra

Accumulate

153

166

5,093

3,964

4,582

42.3

40.2

15.7

16.9

9.7

9.1

1.5

1.3

16.6

15.8

2.8

2.7

ITNL

Buy

190

232

3,688

6,840

7,767

26.4

26.1

24.4

30.3

7.8

6.3

1.2

1.0

16.0

16.2

2.7

2.9

IVRCL Infra

Accumulate

46

51

1,406

5,510

6,722

8.8

9.0

2.5

4.6

18.1

10.0

0.6

0.6

3.4

5.8

0.7

0.7

Jaiprakash Asso.

Accumulate

92

91

19,510

15,259

17,502

25.7

24.7

4.0

4.8

22.9

19.2

1.8

1.7

8.5

9.3

2.5

2.2

Larsen & Toubro

Accumulate

1,636

1,721

100,416

60,474

69,091

12.1

11.5

79.7

85.4

20.5

19.2

3.5

3.0

16.3

15.1

1.8

1.6

Madhucon Proj

Buy

35

56

262

2,206

2,502

10.7

10.7

4.6

4.7

7.6

7.6

0.4

0.4

5.2

5.0

0.7

0.7

Nagarjuna Const.

Neutral

50

1,294

5,804

6,513

8.0

8.6

3.0

3.5

16.6

14.4

0.5

0.5

3.2

3.6

0.6

0.7

Patel Engg.

Neutral

83

577

3,609

3,836

13.1

13.1

14.0

14.6

5.9

5.7

0.4

0.3

6.3

6.1

1.0

1.0

Punj Lloyd

Neutral

55

1,820

11,892

13,116

8.9

8.9

1.7

3.1

32.3

17.7

0.6

0.6

1.9

3.4

0.6

0.5

Sadbhav Engg.

Buy

145

182

2,181

2,506

3,147

10.3

10.7

7.5

10.4

19.3

13.9

2.4

2.1

13.5

16.0

1.0

0.9

Simplex Infra

Buy

218

265

1,079

6,732

7,837

8.1

8.4

23.4

29.4

9.3

7.4

0.8

0.8

9.2

10.6

0.5

0.5

Allahabad Bank

Reduce

141

131

7,038

6,944

7,884

3.0

3.1

35.5

37.0

4.0

3.8

0.6

0.6

17.2

15.7

Andhra Bank

Reduce

Axis Bank

Buy

Bank of Baroda

Financials
110

97

6,147

4,929

5,633

3.1

3.1

23.7

24.5

4.6

4.5

0.8

0.7

16.6

15.3

1,119

1,326

46,365

15,425

18,500

3.1

3.2

115.9

137.5

9.7

8.1

1.8

1.5

19.9

20.1

Neutral

780

30,531

15,473

18,142

2.6

2.6

115.3

139.4

6.8

5.6

1.0

0.9

16.2

17.2

Bank of India

Accumulate

303

330

17,383

12,573

14,971

2.3

2.4

58.2

68.0

5.2

4.5

0.9

0.7

15.9

16.3

Bank of Maharashtra

Neutral

50

2,927

3,442

3,802

3.1

3.2

8.9

11.4

5.6

4.3

0.7

0.6

13.5

15.5

Canara Bank

Neutral

431

19,076

10,905

12,783

2.1

2.2

74.9

85.1

5.8

5.1

0.9

0.8

15.1

15.3

Central Bank

Neutral

76

5,561

7,095

8,102

2.5

2.7

15.6

21.0

4.8

3.6

0.8

0.7

12.2

14.7

www.angelbroking.com

Market Outlook
October 16, 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

Financials
Corporation Bank

Accumulate

411

447

6,093

4,886

5,669

2.1

2.2

101.3

101.8

4.1

4.0

0.7

0.6

17.0

15.1

Dena Bank

Neutral

109

3,824

3,147

3,495

2.8

2.9

24.8

24.4

4.4

4.5

0.8

0.7

18.7

15.9

Federal Bank

Neutral

472

8,062

2,593

3,009

3.2

3.2

44.9

52.5

10.5

9.0

1.3

1.2

12.8

13.5

HDFC

Neutral

740

113,893

7,340

8,805

3.5

3.5

31.5

37.8

23.5

19.6

4.7

4.2

34.8

32.2

HDFC Bank

Neutral

633

149,425

21,753

26,811

4.4

4.5

28.7

35.9

22.1

17.6

4.2

3.6

20.7

21.9

ICICI Bank

Buy

1,053

1,245

121,059

22,304

26,855

2.9

3.0

68.6

82.0

15.4

12.8

1.9

1.7

14.2

15.6

IDBI Bank

Neutral

100

12,803

7,761

9,484

1.9

2.2

17.1

22.9

5.9

4.4

0.7

0.6

11.9

14.4

Indian Bank

Reduce

189

181

8,110

6,062

6,818

3.4

3.4

40.5

41.6

4.7

4.5

0.8

0.7

18.1

16.3

IOB

Accumulate

80

87

6,344

7,343

8,391

2.5

2.5

16.0

21.3

5.0

3.7

0.6

0.5

11.3

13.6

J & K Bank

Accumulate

1,158

1,021

5,615

2,600

2,850

3.6

3.5

192.3

188.0

6.0

6.2

1.2

1.0

21.0

17.7

LIC Housing Finance

Accumulate

257

301

12,952

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

Neutral

299

8,715

6,278

7,125

2.7

2.8

56.7

62.6

5.3

4.8

0.7

0.7

14.1

13.9

Punjab Natl.Bank

Accumulate

820

941

27,816

19,934

22,705

3.3

3.3

147.8

166.2

5.6

4.9

1.0

0.8

17.7

17.3

South Ind.Bank

Accumulate

23

25

3,132

1,535

1,760

2.9

2.8

3.5

3.9

6.6

6.0

1.1

1.0

19.5

17.1

St Bk of India

Accumulate

2,264

2,353

151,945

63,806

73,435

3.5

3.6

225.7

258.4

10.0

8.8

1.7

1.4

17.7

17.8

Syndicate Bank

Accumulate

120

117

7,244

6,722

7,719

2.9

3.0

24.3

27.2

5.0

4.4

0.8

0.7

17.0

16.8

UCO Bank

Neutral

78

5,201

5,411

6,124

2.4

2.5

17.0

16.5

4.6

4.7

0.9

0.8

16.7

14.4

Union Bank

Accumulate

204

226

11,250

9,924

11,647

2.8

2.9

38.6

46.3

5.3

4.4

0.9

0.7

15.4

16.3

United Bank

Buy

67

78

2,415

3,572

4,041

2.8

2.9

17.2

22.1

3.9

3.0

0.6

0.5

14.2

16.2

Vijaya Bank

Neutral

57

2,827

2,490

2,881

2.1

2.2

9.2

11.4

6.2

5.0

0.8

0.7

11.5

13.0

Yes Bank

Buy

395

452

14,056

3,270

4,253

2.8

3.0

33.9

42.2

11.6

9.3

2.5

2.0

23.1

23.6

3,866

37,080

11,198

13,184

16.3

16.3

121.0

144.8

32.0

26.7

10.7

8.4

37.4

35.3

3.3

2.8

490

584

5,857

5,835

6,824

5.7

6.0

20.7

25.4

23.7

19.3

9.3

7.2

43.1

41.9

0.9

0.7

1,238

16,833

3,018

3,429

20.9

22.2

35.7

42.3

34.7

29.2

32.0

23.8

101.0

93.5

5.3

4.6

FMCG
Asian Paints

Neutral

Britannia

Buy

Colgate

Neutral

Dabur India

Neutral

134

23,434

6,124

7,030

17.0

16.8

4.5

5.2

30.1

26.0

12.4

9.8

43.2

41.5

3.7

3.1

GlaxoSmith Con*

Neutral

2,979

12,528

3,124

3,663

17.1

17.6

104.5

123.8

28.5

24.1

8.9

7.1

34.4

32.8

3.7

3.1

Godrej Consumer

Neutral

683

23,243

6,097

7,233

18.4

18.6

21.9

26.5

31.2

25.8

6.9

5.7

25.5

25.4

3.9

3.3

HUL

Neutral

578

124,937

25,350

28,974

13.9

13.9

14.3

16.5

40.5

35.1

24.1

18.6

70.9

59.8

4.4

3.8

ITC

Neutral

286

224,808

29,513

33,885

35.4

35.8

9.3

10.8

30.8

26.5

10.2

8.5

35.6

35.0

6.9

6.0

www.angelbroking.com

Market Outlook
October 16, 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

203

13,088

4,840

5,643

13.1

13.1

6.8

8.5

29.9

24.0

8.3

6.3

31.4

29.7

2.7

2.2

Nestle*

Neutral

4,685

45,175

8,610

10,174

20.9

21.2

114.8

139.8

40.8

33.5

24.6

17.2

71.2

60.3

5.0

4.1

Tata Global

Neutral

160

9,894

7,207

7,927

9.7

10.0

6.6

7.8

24.2

20.5

2.5

2.4

8.6

9.5

1.1

1.0

HCL Tech^

Accumulate

583

632

40,486

24,569

27,002

18.8

17.6

41.4

45.1

14.1

12.9

3.2

2.7

22.8

21.1

1.6

1.4

Hexaware*

Accumulate

114

140

3,387

1,966

2,161

22.5

21.4

11.6

12.2

9.9

9.4

2.6

2.2

26.8

23.9

1.5

1.3

Infosys

Accumulate

2,366

2,687

135,846

39,383

41,380

31.7

31.9

163.2

173.4

14.5

13.6

3.5

3.0

23.9

22.0

3.1

2.8

Infotech Enterprises

Neutral

198

2,205

1,895

2,049

18.0

17.5

18.1

19.5

10.9

10.1

1.6

1.4

14.5

13.7

0.8

0.6

KPIT Cummins

Buy

122

142

2,174

2,191

2,364

16.1

16.5

11.3

13.0

10.8

9.4

2.4

1.9

21.8

20.0

1.0

0.8

Mahindra Satyam

Neutral

108

12,687

7,628

8,062

19.9

18.4

9.7

10.0

11.1

10.8

3.1

2.4

27.7

22.2

1.3

1.1

Mindtree

Buy

680

772

2,784

2,334

2,481

19.5

17.6

70.4

77.2

9.7

8.8

2.2

1.8

23.3

20.4

0.9

0.8

Mphasis&

Neutral

396

8,318

5,700

5,993

18.0

16.9

37.0

37.3

10.7

10.6

1.5

1.3

14.3

12.6

1.0

0.9

NIIT

Accumulate

34

36

567

1,034

1,146

9.9

11.0

5.2

6.4

6.6

5.4

0.8

0.8

12.8

14.3

0.3

0.2

Persistent

Reduce

434

398

1,738

1,207

1,278

26.2

24.3

42.4

44.3

10.3

9.8

1.8

1.5

17.1

15.5

1.1

0.9

TCS

Accumulate

1,291

1,405

252,677

61,611

67,507

29.3

29.1

69.0

74.0

18.7

17.5

6.1

5.0

32.4

28.6

3.9

3.5

Tech Mahindra

Accumulate

943

1,046

12,032

6,603

7,196

18.2

17.1

92.7

99.6

10.2

9.5

2.4

1.9

23.6

20.5

1.9

1.7

Wipro

Accumulate

353

421

86,896

43,800

48,332

19.5

19.3

25.6

28.1

13.8

12.6

2.6

2.3

18.9

17.9

1.8

1.5

D B Corp

Buy

218

236

4,001

1,604

1,786

22.3

23.8

11.2

13.7

19.6

16.0

3.7

3.2

20.3

21.4

2.2

2.0

HT Media

Buy

95

113

2,235

2,111

2,263

14.7

14.8

7.3

8.1

13.0

11.7

1.4

1.3

11.3

11.2

0.7

0.6

Jagran Prakashan

Buy

95

112

3,011

1,488

1,664

22.7

22.8

6.2

7.1

15.3

13.4

3.7

3.3

25.2

26.3

2.1

1.8

PVR

Neutral

216

562

625

732

17.4

17.1

13.3

15.6

16.3

13.8

1.8

1.6

13.2

13.8

1.2

1.0

Sun TV Network

Neutral

365

14,366

1,981

2,239

77.0

76.7

18.6

21.3

19.6

17.1

4.9

4.3

27.1

27.5

6.4

5.5

Bhushan Steel

Neutral

503

10,685

11,979

14,584

31.6

31.0

49.2

61.4

10.2

8.2

1.4

1.2

14.1

15.2

2.9

2.4

Coal India

Accumulate

357

385

225,336

69,808

75,550

27.4

27.4

26.0

28.3

13.7

12.6

4.0

3.2

32.5

28.1

2.3

2.0

Electrosteel Castings

Accumulate

23

23

791

1,984

2,074

11.2

12.6

2.5

2.9

9.2

8.0

0.4

0.2

5.1

5.7

0.5

0.5

Hind. Zinc

Accumulate

135

144

56,978

12,446

13,538

52.3

52.9

14.3

15.5

9.5

8.7

1.8

1.5

20.5

18.9

2.7

2.1

Hindalco

Neutral

120

22,965

84,855

92,446

8.7

9.3

13.2

16.2

9.1

7.4

0.7

0.6

7.8

8.9

0.7

0.6

JSW Steel

Neutral

766

17,097

38,740

41,459

17.3

17.0

79.9

89.4

9.6

8.6

1.0

0.9

10.4

10.6

0.9

0.8

MOIL

Accumulate

252

271

4,237

918

993

50.7

50.9

24.5

26.1

10.3

9.7

1.6

1.4

16.0

15.5

2.3

2.0

Monnet Ispat

Buy

294

379

1,890

2,511

3,303

23.8

26.0

46.3

57.3

6.4

5.1

0.7

0.6

12.4

13.7

1.7

1.2

IT

Media

Metals & Mining

www.angelbroking.com

Market Outlook
October 16, 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

Reduce

NMDC

Accumulate

49

48

12,744

7,401

7,841

16.7

19.2

3.4

4.1

14.5

12.1

1.0

1.0

7.4

8.4

1.3

1.2

189

214

75,052

12,934

14,266

79.4

80.1

21.1

23.4

9.0

8.1

2.4

2.0

29.6

26.5

4.1

3.4

SAIL
Sesa Goa

Neutral

86

35,378

47,252

60,351

14.2

14.8

9.6

11.7

9.0

7.3

0.8

0.7

9.4

10.6

1.2

1.0

Neutral

172

14,936

7,704

8,034

33.6

34.6

42.0

43.1

4.1

4.0

0.8

0.7

22.3

19.2

2.2

2.1

Sterlite Inds

Neutral

102

34,211

41,680

45,382

24.2

23.2

16.3

16.9

6.3

6.0

0.7

0.6

11.3

10.7

0.8

0.7

Tata Steel

Buy

419

481

40,694 145,799 150,431

10.3

11.2

48.6

63.3

8.6

6.6

0.9

0.8

10.5

12.4

0.5

0.5

Sarda

Accumulate

132

148

474

1,251

1,321

22.7

23.4

33.0

37.1

4.0

3.6

0.6

0.5

15.1

14.8

0.8

0.7

Prakash Industries
Godawari Power and
Ispat
Oil & Gas

Buy

53

73

718

2,694

2,906

14.6

16.6

16.4

20.8

3.3

2.6

0.3

0.3

11.4

12.8

0.5

0.4

Buy

121

161

384

2,341

2,425

15.6

17.3

33.3

43.2

3.6

2.8

0.4

0.4

13.2

14.4

0.5

0.5

Cairn India

Accumulate

330

380

63,016

16,605

17,258

75.4

71.7

57.0

54.9

5.8

6.0

1.1

0.9

20.2

16.3

2.8

2.2

GAIL

Neutral

380

48,247

50,176

55,815

15.5

15.8

35.4

36.5

10.8

10.4

1.9

1.7

18.9

17.0

0.7

0.5

ONGC

Accumulate

280

312

239,425 147,139 154,821

33.9

33.7

30.7

32.3

9.1

8.7

1.6

1.4

18.3

17.2

1.4

1.2

Reliance Industries

Neutral

823

269,561 362,700 380,031

7.9

8.0

61.5

64.3

13.4

12.8

1.3

1.2

10.3

9.9

0.7

0.7

Gujarat Gas*

Neutral

298

3,819

11.5

11.3

19.2

22.1

15.5

13.5

4.1

3.7

28.7

29.0

1.3

1.0

Indraprastha Gas

Neutral

260

3,639

3,040

3,135

24.3

26.7

24.8

27.9

10.5

9.3

2.4

2.0

25.5

23.6

1.3

1.1

Petronet LNG
Gujarat State Petronet
Ltd.
Pharmaceuticals

Accumulate

164

176

12,285

29,145

33,736

6.6

6.6

14.2

16.0

11.5

10.2

2.8

2.3

26.9

24.4

0.4

0.4

81

4,549

1,041

939

91.8

91.9

8.5

7.4

9.5

10.9

1.6

1.5

18.1

14.0

5.2

5.8

Alembic Pharma

Buy

Aurobindo Pharma

Accumulate

Aventis*

Neutral

Cadila Healthcare

Accumulate

Cipla

Neutral

Dr Reddy's

Accumulate

Dishman Pharma

Neutral

3,817

3,228

70

91

1,314

1,624

1,855

14.2

15.6

6.6

9.1

10.6

7.7

2.6

2.0

27.9

29.9

1.0

0.8

156

156

4,539

5,243

5,767

14.6

14.6

11.8

12.6

13.2

12.4

1.6

1.4

17.9

16.4

1.3

1.1

2,205

5,079

1,482

1,682

15.5

15.5

95.1

104.4

23.2

21.1

4.1

3.2

18.6

17.0

3.5

3.0

849

953

17,387

6,148

7,386

18.6

19.6

36.0

46.1

23.6

18.4

5.6

4.5

25.8

26.8

3.1

2.6

369

29,636

8,031

9,130

23.4

22.4

18.4

20.0

20.1

18.5

3.3

2.9

17.8

16.6

3.6

3.1

1,701

1,859

28,871

10,696

11,662

20.7

21.0

83.7

92.9

20.3

18.3

4.2

3.5

22.4

20.8

2.9

2.6

Neutral

100

807

1,280

1,536

17.8

17.8

9.2

11.3

10.9

8.9

0.8

0.8

7.7

8.5

1.3

1.1

GSK Pharma*

Neutral

1,971

16,697

2,651

2,993

31.7

31.2

76.0

82.4

25.9

23.9

7.5

6.7

20.1

26.3

5.5

4.8

Indoco Remedies

Buy

70

92

641

685

837

15.2

15.2

7.4

8.9

9.4

7.8

1.4

1.2

16.4

17.0

1.1

0.9

Ipca labs

Neutral

457

5,768

2,850

3,474

20.7

20.7

29.2

36.6

15.7

12.5

3.7

2.9

26.1

26.1

2.3

1.9

Lupin

Accumulate

562

647

25,141

8,426

10,082

19.7

20.0

26.3

31.3

21.4

18.0

5.0

4.0

26.0

24.7

3.2

2.6

Orchid Chemicals

Neutral

113

799

1,667

1,835

13.9

13.9

11.4

13.3

9.9

8.5

0.6

0.6

6.6

7.3

0.9

0.8

www.angelbroking.com

Market Outlook
October 16, 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

Pharmaceuticals
Ranbaxy*

Neutral

546

23,056

12,046

11,980

18.0

15.8

31.3

29.8

17.4

18.3

5.9

4.8

39.1

28.9

1.9

1.8

Sun Pharma

Neutral

714

73,873

9,752

12,134

41.6

41.6

26.0

28.2

27.5

25.3

5.2

4.4

20.3

18.8

6.6

5.1

CESC

Neutral

322

4,017

5,218

5,644

24.2

23.8

44.6

47.6

7.2

6.8

0.8

0.7

11.0

10.6

1.6

1.6

GIPCL

Accumulate

NTPC

Neutral

Power
70

77

1,059

1,557

1,573

29.3

28.7

10.8

11.0

6.5

6.4

0.7

0.6

10.8

10.2

1.2

1.0

168

138,565

74,111

85,789

22.7

23.1

12.1

13.7

13.9

12.2

1.7

1.5

12.6

13.2

2.5

2.3

Real Estate
Anant Raj

Accumulate

82

78

2,429

657

875

52.0

56.1

8.4

12.7

9.8

6.5

0.6

0.6

6.3

8.9

4.5

3.4

DLF

Neutral

217

36,901

9,878

12,033

44.7

46.1

9.6

13.4

22.7

16.2

1.4

1.4

6.4

8.7

6.5

5.4

HDIL

Buy

107

115

4,475

2,441

3,344

55.1

48.2

22.7

26.6

4.7

4.0

0.4

0.4

8.8

9.4

3.5

2.7

MLIFE

Neutral

404

1,648

813

901

26.2

26.6

32.0

37.1

12.6

10.9

1.3

1.2

10.4

11.0

2.3

2.0

Bharti Airtel

Neutral

263

99,989

79,147

86,745

31.1

32.5

9.9

15.1

26.5

17.5

1.9

1.7

7.0

9.7

2.0

1.7

Idea Cellular

Neutral

81

26,785

22,582

24,684

26.4

26.9

3.3

4.7

24.3

17.1

1.9

1.7

7.8

9.9

1.7

1.5

Rcom

Neutral

62

12,776

20,650

20,935

32.3

33.0

4.2

5.8

14.6

10.8

0.3

0.3

2.3

3.1

2.3

2.1

Abbott India

Neutral

1,494

3,175

1,602

1,833

10.4

11.8

54.7

71.7

27.3

20.8

5.2

4.4

20.0

22.7

1.9

1.6

Bajaj Electricals

Buy

227

228

2,261

3,670

4,290

7.6

8.8

15.0

23.0

15.1

9.9

2.8

2.2

18.6

22.4

0.5

0.5

Cera Sanitaryware

Buy

380

388

480

396

470

16.7

16.6

31.0

35.0

12.3

10.9

2.8

2.3

24.8

23.0

1.1

1.0

Cravatex

Buy

470

682

122

289

340

5.2

5.9

41.0

57.0

11.5

8.3

2.9

2.2

25.2

26.5

0.5

0.4

CRISIL

Neutral

936

6,568

982

1,136

34.3

34.3

34.3

40.0

27.3

23.4

12.3

9.9

50.9

46.9

6.5

5.4

Finolex Cables

Buy

44

61

673

2,334

2,687

6.2

6.5

8.0

10.0

5.5

4.4

0.8

0.7

13.0

14.9

0.2

0.2

Force Motors

Buy

422

591

551

2,214

2,765

4.5

5.4

39.0

74.0

10.8

5.7

0.5

0.4

4.4

7.6

0.1

0.1

Goodyear India

Neutral

322

742

1,543

1,654

6.5

7.3

24.8

31.1

13.0

10.3

2.1

1.8

17.1

19.0

0.3

0.2

Disa India

Buy

2,960

3,353

447

176

203

22.7

22.6

182.5

209.6

16.2

14.1

8.4

6.6

51.8

47.1

2.2

1.8

Greenply Industries

Buy

242

309

583

1,925

2,235

10.6

10.9

29.6

44.1

8.2

5.5

1.3

1.1

16.8

21.0

0.5

0.4

Hitachi

Neutral

135

310

868

977

3.9

6.6

2.7

10.9

49.2

12.4

1.8

1.6

3.7

13.6

0.4

0.4

Honeywell Automation* Neutral

2,650

2,342

1,847

2,162

4.3

7.3

69.0

135.0

38.4

19.6

3.4

3.0

9.3

16.3

1.3

1.1

1,143

1,056

1,081

8.1

10.6

34.0

47.0

19.1

13.8

2.7

2.3

14.7

17.5

1.1

1.0

Telecom

zOthers

Styrolution ABS India*

Buy

650

744

ITD Cementation

Neutral

236

271

1,451

1,669

12.3

12.4

32.4

41.5

7.3

5.7

0.7

0.6

9.4

10.9

0.6

0.6

Jyothy Laboratories

Neutral

167

2,686

1,248

1,468

9.8

10.4

5.9

7.2

28.1

23.3

4.0

3.7

15.0

16.6

2.5

2.0

MCX

Accumulate

1,402

1,440

7,152

553

624

65.3

66.3

62.5

72.0

22.5

19.5

6.2

5.3

27.5

27.4

8.9

7.4

MRF

Buy

10,237

12,884

4,342

11,804

12,727

10.4

10.5 1,289.9 1,431.3

7.9

7.2

1.5

1.3

21.3

19.4

0.5

0.5

www.angelbroking.com

Market Outlook
October 16, 2012

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

( )

Price ( )

( cr )

3,453

725

821

Sales ( cr )

OPM(%)

EPS ( )

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

3,851

887

1,108

18.3

18.6

95.0

120.9

36.4

28.6

19.0

15.4

57.4

59.5

4.0

3.2

870

1,019

1,208

12.3

13.0

51.0

68.4

14.2

10.6

3.8

2.8

30.3

30.2

1.0

0.8

zOthers
Page Industries

Neutral

Relaxo Footwears

Accumulate

Sintex Industries

Buy

73

79

2,001

4,751

5,189

16.3

16.6

13.6

15.8

5.4

4.7

0.7

0.6

12.9

13.2

0.8

0.6

Siyaram Silk Mills

Buy

306

392

286

1,042

1,173

12.4

12.5

66.3

78.5

4.6

3.9

0.9

0.7

21.1

20.8

0.5

0.4

S. Kumars Nationwide

Buy

19

24

559

7,134

7,985

19.7

19.4

12.2

14.1

1.5

1.3

0.2

0.2

11.3

11.5

0.6

0.6

SpiceJet

Buy

36

43

1,749

5,720

6,599

5.3

6.8

3.6

5.4

10.0

6.7

14.5

4.6

0.4

0.4

TAJ GVK

Buy

74

108

463

300

319

35.8

36.2

7.9

9.1

9.4

8.1

1.2

1.1

13.9

14.4

1.8

1.5

Tata Sponge Iron

Buy

331

377

509

787

837

16.2

17.5

58.5

66.9

5.7

4.9

0.8

0.7

14.9

15.1

0.3

0.2

TVS Srichakra

Accumulate

312

335

239

1,476

1,643

7.0

8.2

32.6

55.9

9.6

5.6

1.5

1.3

16.8

24.8

0.4

0.3

United Spirits

Neutral

1,225

16,018

10,289

11,421

13.5

14.3

31.0

42.9

39.5

28.5

3.1

2.8

8.1

10.3

2.2

2.0

Vesuvius India

Neutral

364

739

560

611

16.1

17.0

24.7

28.8

14.8

12.7

2.2

1.9

15.8

16.2

1.1

1.0

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 15, 2012

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Market Outlook
October 16, 2012

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