Market Outlook

January 21, 2013

Dealers Diary
The Indian market is expected to open in the green mirroring positive start to the SGX Nifty. The US markets ended Friday's trading mostly higher after showing a lack of direction for much of the session. The markets benefited from the late-day buying partly due to a positive reaction to the latest news about the impending showdown over the U.S. debt limit. The House Republican leaders indicated they will hold a vote to authorize a three month temporary debt limit increase to give lawmakers time to pass a budget that reduces spending. The choppy trading seen earlier in the day reflected a mixed reaction to the latest earnings news, with upbeat results from Morgan Stanley and General Electric offset by disappointing results from Intel. Indian markets fell sharply on Friday, with a correction in rate-sensitives including auto, banking and realty. Going ahead investors would be watchful of the earnings data coupled with economic reports on weekly jobless claims, leading economic indicators, and new and existing home sales.

Domestic Indices

Chg (%)

(Pts)

(Close)

BSE Sensex Nifty MID CAP SMALL CAP BSE HC BSE PSU BANKEX AUTO METAL OIL & GAS BSE IT
Global Indices

0.4 0.4 (0.2) (0.5) (0.5) 2.8 0.1 (0.7) (0.6) 3.1 (1.1)
Chg (%)

75.0 20,039 25.2 (16.8) (38.8) (41.9) 211.6 6,064 7,165 7,370 8,067 7,862

20.0 14,551 (83.3) 11,298 (65.7) 10,780 287.2 (73.4)

(Pts)

9,571 6,406
(Close)

Dow Jones NASDAQ FTSE Nikkei Hang Seng Straits Times Shanghai Com
Indian ADR

0.4 (0.0) 0.4

2.9 1.1 0.5 1.4

53.7 13,650 (1.3) 22.1 3,135 6,154

Markets Today
The trend deciding level for the day is 20,052 / 6,065 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 20,114 20,188 / 6,082 6,100 levels. However, if NIFTY trades below 20,052 / 6,065 levels for the first half-an-hour of trade then it may correct up to 19,978 19,916 / 6,047 6,030 levels.
Indices SENSEX NIFTY S2 19,916 6,030 S1 19,978 6,047 PIVOT 20,052 6,065 R1 20,114 6,082 R2 20,188 6,100

303.7 10,913 262.0 23,602 16.1 32.2 3,211 2,317

Chg (%) 0.2 (7.2) 0.5 0.2

(Pts) 0.1 (0.7) 0.2 0.1

(Close) $52.2 $9.2 $44.2 $39.6

INFY WIT IBN HDB

Advances / Declines

News Analysis
Excise duty on diesel SUVs likely to increase 3QFY2013 Result Review: Reliance Industries, ITC, HDFC Bank, Hindustan Zinc, Ultratech Cement, Bhushan Steel, Blue Star, Force Motors 3QFY2013 Result Preview: HDFC, NTPC, Cairn India, Asian Paints, Shree Cements, DB Corp, Alembic Pharmaceuticals
Refer detailed news analysis on the following page

BSE

NSE

Advances Declines Unchanged

Volumes (` cr)

971 1,331 769

592 922 78

Net Inflows (January 17, 2013)

` cr FII MFs Purch 3,601 688 Sales 2,980 703 Net 621 (16) MTD 12,529 (1,949) YTD 12,529 (1,949)

BSE NSE

2,591 14,759

FII Derivatives (January 18, 2013)

` cr Index Futures Stock Futures Purch 996 2,111 Sales 780 2,098 Net 216 13 Open Interest 7,515 33,751

Gainers / Losers
Gainers Company
Indian Oil Corp BPCL Oil India ONGC Indraprastha Gas

Losers Company
Exide Industries Wipro United Breweries Cummins India Crompton Greaves

Price (`)
349 434 561 338 275

chg (%)
10.5 9.6 9.0 7.3 5.6

Price (`)
126 397 684 492 114

chg (%)
(9.4) (7.9) (6.5) (2.9) (2.9)

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Market Outlook
January 21, 2013

Excise duty on diesel SUVs likely to increase

According to media reports, the government might impose a higher excise duty or a surcharge on diesel sports utility vehicles (SUVs) during the Budget 2013-14. This move by the government according to the reports is mainly aimed at reducing subsidies on the fuel bill. The report further states that the finance ministry has been exploring the idea of a higher excise duty on diesel cars; however, it could not be implemented earlier due to opposition from automobile companies. The clamor for imposing higher taxes on diesel vehicles have been doing the rounds since 2010, after the Kirit Parikh committee on pricing of petroleum products had proposed an additional duty of `80,000 on diesel SUVs and an annual road tax of up to `50,000 a year on diesel cars. While, until now the government has resisted from adopting such a move, we cannot rule out the imposition of higher taxes on diesel vehicles completely. The utility vehicle segment which is mainly dominated by diesel models continues to defy the current slowdown in the automotive industry and has grown at a rate of 59.1% YTD in FY2013. We believe that increase in excise duty on diesel SUVs will have a negative impact on the utility vehicle segment and would hamper the growth of the overall passenger vehicle industry. We feel that Mahindra and Mahindra would be the major loser of such a move by the government as utility vehicles account for ~30% of companys total volumes. Currently, we have an Accumulate rating on MM with a target price of `998.

3QFY2013 Result Review Reliance Industries (CMP: `899/ TP: -/ Upside: -)

Reliance Industries (RIL) 3QFY2013 profitability was above our estimates on account of higher than expected profitability from the refining segment. Gross refining margins (GRMs) surprised us positively and came in at US$9.6/barrel (US6.5/barrel in 3QFY2012 and US$9.5/barrel in 2QFY2013) vs our expectations of US$8.5/barrel. During 3QFY2013, RILs net sales increased by 10.3% yoy to `93,886cr, above our estimate of `89,981cr. Net sales growth was mainly driven by the petrochemicals segment (+11.5% yoy to `22,053cr) and the refining segment (+12.9% yoy to `86,641cr). RILs EBITDA increased by 14.9% yoy to `8,373cr on account of higher profits from refining and marketing segments. The refining segments EBIT grew by 114.5% yoy to `3,615cr due to higher GRMs. However, the petrochemical segments EBIT decreased 10.2% yoy to `1,937cr, while the oil and gas segments EBIT decreased by 54.4% yoy to `590cr due to decline in KG D6 production (-41.4% yoy to 78bcf). Other income increased 1.3% yoy to `1,740cr. The company had a lower tax rate in this quarter of 17.9% (22.6% in 3QFY2012) and hence, the net profit grew by 23.9% yoy to `5,502cr (above our estimate of `5,108cr). Although 3QFY2013 results were above our estimates, given the recent rise in the stock price, we maintain our Neutral rating on the stock.
Y/E March FY2013E FY2014E Sales (` cr) 362,700 380,031 OPM (%) 8.1 8.0 PAT (` cr) 20,045 20,715 EPS (`) ROE (%) P/E P/BV (x) (x) 1.4 1.3 EV/EBITDA (x) 9.3 8.6 EV/Sales (x) 0.7 0.7

61.3 11.3 14.7 63.3 10.6 14.2

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Market Outlook
January 21, 2013

ITC (CMP: `287/ TP: -/ Upside: -)

For 3QFY2013 ITC has delivered a stellar set of numbers. Net sales rose by 23.1% on a yoy basis to `7,627cr. Cigarettes business posted a 13.1% yoy growth in net sales to `3,657cr aided largely by price hikes. Other FMCG business posted a healthy 30.1% yoy growth in net sales to `1,783cr. Agri business surprised again with a remarkably good 43.1% yoy growth in net sales to `1,631cr. Hotels and Papers & Packaging businesses posted a top-line growth of 11% and 8.5% respectively. OPM came in at 36.4% down 75bp on yoy basis. While the cigarette business posted margin expansion, losses of other FMCG business halved to `24cr. However, other divisions posted margin contraction on a yoy basis. The companys bottom-line rose by a healthy 20.6% yoy to `2,052cr. We maintain our Neutral view on the stock.
Y/E March FY2013E FY2014E Sales (` cr) 28,787 33,554 OPM (%) PAT (` cr) EPS (`) 20.7 17.5 ROE (%) 35.1 35.1 P/E (x) 31.4 26.7 P/BV EV/EBITDA EV/Sales (x) 10.3 8.6 (x) 20.7 17.5 (x) 7.4 6.3

35.7 7,138 36.1 8,419

HDFC Bank (CMP: `663/ TP: -/ Upside: -)

HDFC Bank delivered another quarter of consistent performance on the bottom-line front, with a growth of 30% yoy, in-line with our as well as the streets estimates. In spite of an operating income growth of 23% yoy, the banks other income growth, boosted by treasury gains and overall steady provisioning, aided it to clock 30% yoy growth at the bottom-line level. Balance sheet growth robust; Asset quality witnesses modest pressures: The bank registered a robust growth in its balance sheet, with net advances and deposits growing at 24.3% and 22.2% yoy, thereby outpacing industry average growth. On the CASA front, the current account (adjusted for one-offs) and saving account accretion was healthy, growing at 15.9% and 16.5% yoy, respectively. CASA ratio dipped by 50bp qoq to 45.4%. The share of retail advances to overall loan book, increased from 53.2% in 2QFY2013 to 53.8%, on back of lower wholesale lending (2.8% qoq compared to 5.5% qoq in retail loans). In spite of higher retail lending, the banks margins declined by10bp qoq to 4.1%, primarily due to absence of dividend income during the quarter, which had aided the margins in 2QFY2013 and also due to increased delinquencies and 50bp sequential fall in CASA ratio. Overall, the non-interest income grew by 26.7% yoy, aided by treasury gains and robust growth on the fee income front. Excluding treasury gains, the noninterest income grew at a moderate pace of 10.7% yoy. The bank faced modest pressures on the asset quality front this time around, as its Gross and Net NPA levels increased sequentially by 14% and 28%, on an absolute basis. As we understand from the management, around 40% of the total increase in Gross NPA levels during the quarter came in from CVCE loan book, within the retail portfolio. Overall, Gross and net NPA ratios for the bank remain amongst the best in the industry at 1.0% and 0.2%, respectively. Restructured loan book as a proportion of overall advances, remained stable at 0.3%. The bank made floating provision of `30cr during the quarter, which took its outstanding floating provisions to around `1,700cr. NPA provision coverage ratio (without considering the floating provisions) came off sequentially by 235bp to 79.6%.

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Market Outlook
January 21, 2013

Outlook and valuation: HDFC Bank is currently trading at one-year forward 3.9x P/ABV (3.7x FY2014 ABV), higher than its median of 3.5x (over FY2005-12). We believe the current valuations largely factor in the positives, leaving limited upside in the stock. Hence we recommend a Neutral rating on the stock.
Y/E March FY2013E FY2014E Op. Inc (` cr) 21,724 26,578 NIM (%) PAT (` cr) EPS (`) 28.7 36.1 ABV (%) 149.7 177.5 ROA (x) 1.8 1.8 ROE (x) 20.7 22.1 P/E (x) 23.1 18.3 P/ABV (x) 4.4 3.7

4.3 6,727 4.3 8,477

Hindustan Zinc (CMP: `130/ TP: `144/ Upside: 11%)

Hindustan Zincs (HZL) 3QFY2013 top-line was in line with our estimate, while bottom-line was slightly below our expectation. HZLs net revenue increased by 14.3% yoy to `3,140cr (in line with our estimate of `3,044cr) mainly due to higher rupee realizations and increased sales volumes of Lead and Silver. However, Zinc production volumes declined 10.0% yoy to 171kt due to lower production from Rampura Agucha mines (in line with companys guidance). Nevertheless, Lead production volumes grew by 11.0% yoy to 32kt and silver production volumes grew 103.0% yoy to 117kt due to higher production from Sindesur Khurd mine and new Dariba Lead and Silver capacities. However, EBITDA margin contracted by 348bp yoy to 47.6% mainly on account of 11.0% yoy increase in cost of production to `44,900/tonne. Cost of production increased due to increase in commodity prices, higher excavation and lower by-product credits. Hence, the EBITDA increased by only 6.5% yoy to `1,494cr. Nevertheless, other income rose by 32.6% yoy to `506cr while tax rate was lower at 11.2% in 3QFY2013 (20.9% in 3QFY2012). Consequently, net profit grew by 26.0% yoy to `1,613cr (slightly below our estimate of `1,685cr). HZL has announced to increase its mined metal capacity to 1.2mtpa. The development of mines will be progressively completed over a period of next 6 years and ~US$250mn capex will be incurred every year. We maintain our Accumulate rating on the stock with a target price of `144.
Y/E March FY2013E FY2014E Sales (` cr) 12,446 13,538 OPM (%) PAT (` cr) EPS (`) 14.3 15.5 ROE (%) 20.5 18.9 P/E (x) 9.5 8.7 P/BV EV/EBITDA EV/Sales (x) 1.8 1.5 (x) 5.2 4.0 (x) 2.7 2.1

52.3 6,027 52.9 6,568

Ultratech Cement (CMP: `1,910/ TP: /Upside:-)

For 3QFY2013 Ultratech Cement (Ultratech) posted a 6.4% yoy growth in topline to `4,857cr. Domestic grey cement sales volumes remained flat at 9.62mn tonnes, while the sales volume of white cement and wall care putty rose by 6.5% yoy. OPM fell by 20bp yoy to 21.1%. Realization increased by ~6% on a yoy basis, however, fell on a sequential basis. On the cost front raw material and freight costs rose on account of increase in railway freight and diesel costs. Net profit fell by 2.6% yoy to `601cr. We maintain a neutral recommendation on the stock.

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Market Outlook
January 21, 2013

Y/E March FY2013E FY2014E

Sales (` cr) 21,106 23,747

OPM (%)

PAT (` cr)

EPS (`)

ROE (%) 19.8 19.8

P/E (x) 18.8 16.0

P/BV (x) 3.5 2.9

EV/EBITDA EV/tonne* (x) 10.9 9.7 (US $) 191

22.3 2,780101.5 23.2 3,262119.0

Note: Computed on TTM basis

Bhushan Steel (CMP: `433/TP: - /Upside: -)

Bhushan Steel reported its 3QFY2013 results. Net sales grew by 3.8% yoy to `2,405cr as a 9.0% yoy volume growth (to 0.56mn tonnes) would have been offset by lower realizations in our view. However, EBITDA increased by 7.0% yoy to `785cr due to 38.2% yoy growth in other operating income to `124cr. Depreciation expense increased 36.8% yoy to `207cr on account of increased capacity, while interest expense increased 27.9% yoy to `293cr. Consequently, net profit decreased by 20.0% yoy to `221cr. The companys Board has approved to set up a 0.35mtpa capacity Cold Rolling cum Electrical Steel complex at estimated project cost of `1,560cr and re-affirmed the proposal to set up a 1.8mtpa capacity Pickling Line coupled with Tandem Cold Rolling Mill at an estimated capex of `6,000cr, at Meramandali plant in Orissa. We maintain our Neutral view on the stock as the stock is expensive at 7.7x FY2014 EV/EBITDA in our view.
Y/E March FY2013E FY2014E Sales (` cr) 11,307 14,287 OPM (%) 29.5 PAT EPS (` cr) (`) 958 45.1 ROE (%) 11.8 11.6 P/E (x) 9.6 8.5 P/BV (x) 1.0 0.9 EV/EBITDA (x) 9.6 7.7 EV/Sales (x) 2.8 2.2

29.1 1,083 51.0

Blue Star (CMP: `179 / TP: `234/ Upside: 30.9%)

Blue Star announced a mixed set of numbers for 2QFY2013. Topline came in at `599cr, 6% higher than our expectation of `565cr and 2.5% higher on a yoy basis from `584cr in 3QFY2012. Better performance of the EMPPACS division was offset by 5% yoy decline in revenue of the cooling products division owing to its seasonal nature of the and decline in PEIS division owing to the unfavourable business climate and declining demand capital goods sector. However, EBITDA margin was at 4.2%, 65bp below our expectation of 4.9% primarily due to lower than expected margin in EMPPACS division and cooling products division. Margin erosion in cooling products division resulted from sourcing and selling of installation accessories such as copper pipes and insulation material. This coupled with higher than expected interest expenses and lower other income led to net profit of `5cr, 61% below our expectation `14cr. We expect the companys revenue growth to recover in FY2014E after a decline in FY2013E along with an expansion in EBITDA margin due to better quality order intake in EMPPACS division and softening raw material prices in the cooling products division. Margin expansion coupled with expected decline in the interest cost in FY2014E is expected to result in a 57.4% yoy growth in net profit in FY2014E to `92cr. We maintain our Buy on the stock with target price of `234 based on a target EV/sales of 0.8x for FY2014E.

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Market Outlook
January 21, 2013

Y/E March FY2013E FY2014E

Sales (` cr) 2,698 2,844

OPM (%) 4.4 5.6

PAT (` cr) 58 92

EPS (`) 6.5 10.2

ROE (%) 13.9 19.2

P/E (x) 27.6 17.5

P/BV (x) 3.6 3.1

EV/EBITDA (x) 16.0 11.2

EV/Sales (x) 0.7 0.6

Force Motors Ltd (CMP: `471/ TP: `523/ Upside: 11%)

Force Motors Ltd. (FML) reported disappointing set of numbers for 3QFY2013. Top-line slumped by 16.5% yoy and stood at `436cr, 26% lower than our estimate. EBITDA fell by 31% yoy to `19cr vis--vis our estimate of `31cr. Subsequently EBITDA margin came in at 4.4% as compared to 5.3% in same period previous year. The sharp decline in margin is attributable to 421bp yoy increment in the other expenses. Despite weak operating performance, net profit revived to `8cr which was 248% higher yoy; on the back of other income of `9.3cr and lower tax expenses (5.4% of PBT). We recommend accumulate on the stock with the revised target price of `523 based on target PE of 11x for FY2014E earnings.
Y/E March FY2013E FY2014E Sales (` cr)
2,058 2,328

OPM (%)
4.9 5.0

PAT (` cr)
48 63

EPS (`)
36.5 47.6

ROE (%)
4.1 5.1

P/E (x)
12.9 9.9

P/BV (x)
0.5 0.5

EV/EBITDA (x)
3.7 4.1

EV/Sales (x)
0.2 0.2

3QFY2013 Result Preview HDFC (CMP: `822 / TP: - / Upside: -)

HDFC is expected to announce healthy set of results for 3QFY2013. The NII is expected to increase by 15.7% yoy to `1,337cr, while non-interest income is expected to come in at `442cr, a growth of 45.4% yoy. Operating Income and Operating profit are expected to grow by nearly 22%. Provisioning is expected to be `42cr compared to `20cr in 3QFY2012. Consequently the PAT is expected to increase by 18.4% yoy to `1,162cr. We recommend Neutral rating on the stock.
Y/E March FY2013E FY2014E Op. Inc (` cr) 7,446 8,923 NIM (%) 3.5 3.5 PAT (` cr) 4,928 5,902 EPS (`) ABV (%) ROA (x) 1.1 1.0 ROE (x) 35.4 32.6 P/E (x) 24.7 20.6 P/ABV (x) 5.0 4.5

32.2 158.0 38.5 177.6

NTPC (CMP: `164/TP: -/Upside: -)

NTPC is slated to announce its 3QFY2013 results today. The company is expected to post a 9.0% yoy growth in its top-line to `16,712cr aided by higher realization. On the EBITDA front, OPM is likely to expand by 398bp yoy to 22.6%. Consequently, net profit is expected to grow by 21.7% yoy to `2,592cr. We remain Neutral on the stock.
Y/E March FY2013E FY2014E Sales (` cr) OPM (%) PAT (` cr) EPS (`) ROE (%) P/E (x) P/BV (x) EV/EBITDA (x) EV/Sales (x)

72,809 81,951

23.0 23.7

9,898 11,033

12.0 13.4

12.5 12.9

13.8 12.3

1.7 1.5

10.9 10.0

2.5 2.4

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Market Outlook
January 21, 2013

Cairn India (CMP: `337/ TP: `382/ Upside: 13%)

Cairn India is slated to report its 3QFY2013 results today. Cairn India's net sales are expected to increase by 47.8% yoy to `4,576cr mainly due to increase in volumes. Its operating margin is expected to decline by 419bps yoy to 78.0% whereas its bottom-line is expected to increase by 52.3% yoy to `2,986cr due to increase in operating income. We recommend an Accumulate rating on the stock with a target price of `382.
Y/E March FY2013E FY2014E Sales OPM (` cr)
17,567 17,643

PAT (` cr)
11,652 10,837

EPS ROE P/E P/BV (`) (%) (x) (x)

1.1 1.0 61.09 22.0 5.5 56.82 17.5 5.9

EV/EBITDA (x)
3.7 3.3

EV/Sales (x)
2.8 2.4

(%)
76.2 72.3

Asian Paints (CMP: `4,310/ TP: -/ Upside: -)

Asian Paints is expected to announce its 3QFY2013 results today. We expect the top-line to grow by 20.3% yoy to `3,079cr. OPM is expected to decline by 64bp yoy to 14.9%. Bottom-line is expected to grow by 15.8% yoy to `298cr. We maintain our Neutral recommendation on the stock.
Y/E March FY2013E FY2014E Sales OPM (` cr) (%) PAT (` cr) EPS ROE (`) (%) P/E P/BV (x) (x) 9.5 EV/EBITDA (x) 23.4 19.3 EV/Sales (x) 3.6 3.0

11,198 15.4 1,123 117.1 36.4 36.8 12.1 13,184 15.7 1,358 141.5 35.0 30.5

Shree Cement (CMP: `4,525/ TP: -/ Upside: -)

Shree Cement is expected to announce its 2QFY2013 results today. We expect the top-line to grow by 11.2% yoy to `1,400cr. OPM is expected to expand by 128bp yoy to 27.7%. Bottom-line is expected to grow by 207.7% yoy to `182cr. We maintain our Neutral view on the stock.
Y/E March FY2013E FY2014E Sales (` cr) 5,701 6,210 OPM (%) 29.7 28.1 PAT (` cr) 839 908 EPS (`) 241 261 ROE (%) 27.1 23.6 P/E (x) 18.8 17.4 P/BV (x) 4.6 3.7 EV/EBITDA (x) 7.4 6.4 EV/Sales (x) 154

Note: * Computed on TTM basis

DB Corp (CMP: `232/ TP: `264/ Upside: 13.6%)

DB Corp is slated to announce its 3QFY2013 results. The company is expected to post 10.6% yoy growth in its top-line to `438cr on the back of uptick in advertising revenue aided by the festive season. However, on the EBITDA front, the companys margins are expected to contract by 193bp yoy to 23.8%. In spite of margin pressure, net profit is expected to grow by 7.5% to `60cr. At the current market price, DB Corp is trading at 16x FY2014E consolidated EPS of `14.4. We recommend Accumulate on the stock with a target price of `264.

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Market Outlook
January 21, 2013

Y/E March FY2013E FY2014E

Sales (` cr) 1,581 1,784

OPM (%) 23.3 25.0

PAT (` cr) 212 265

EPS (`) 11.6 14.4

ROE (%) 21.0 22.3

P/E (x) 20.1 16.1

P/BV (x) 3.9 3.4

EV/EBITDA (x) 11.0 8.9

EV/Sales (x) 2.6 2.2

Alembic Pharmaceuticals (CMP: `71/ TP: `91/ Upside: 28%)

For 3QFY2013, the company is expected to post a 11.7% yoy sales growth to end the period at `426cr, mainly driven by the domestic markets. On the operating front, the margin came in at 13.6%, a reduction of 420bps. This will lead to a dip of 34.8% yoy in net profit, which is expected to come in at `28.9cr. We maintain our Buy recommendation with a target of `91.
Y/E March FY2013E FY2014E Sales (` cr) 1,624 1,855 OPM (%) 14.2 15.6 PAT (` cr) 124 171 EPS (`) 6.6 9.1 ROE (%) 27.8 30.0 P/E (x) 10.7 7.8 P/BV (x) 2.6 2.0 EV/EBITDA (x) 6.4 4.9 EV/Sales (x) 0.9 0.8

Quarterly Bloomberg Brokers Consensus Estimate

Asian Paints Consolidated (21/01/2013)
Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit 3QFY13E 2,993 487 16.3 314 3QFY12 2,561 397 15.5 266 18 y-o-y (%) 17 23 2QFY13 2,616 382 14.6 251 25 q-o-q (%) 14 27

HDFC (21/01/2013)
Particulars (` cr) Net profit 3QFY13E 1,164 3QFY12 981 y-o-y (%) 19 2QFY13 1,151 q-o-q (%) 1

NTPC (21/01/2013)
Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit 3QFY13E 16,727 3,787 22.6 2,442 3QFY12 15,332 2,906 19.0 2,130 15 y-o-y (%) 9 30 2QFY13 16,196 4,456 27.5 3,142 (22) q-o-q (%) 3 (15)

Hindustan Unilever (22/01/2013)

Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit 3QFY13E 6,623 1,072 16.2 884 3QFY12 5,770 970 16.8 753 17 y-o-y (%) 15 11 2QFY13 6,155 977 15.9 807 10 q-o-q (%) 8 10

Kotak Mahindra Bank (22/01/2013)

Particulars (` cr) Net profit 3QFY13E 314 3QFY12 276 y-o-y (%) 14 2QFY13 280 q-o-q (%) 12

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Market Outlook
January 21, 2013

Reliance Communication Consolidated (23/01/2013)

Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit 3QFY13E 5,254 1,683 32.0 162 3QFY12 4,737 1,383 29.2 242 (33) y-o-y (%) 11 22 2QFY13 4,634 1,467 31.7 132 23 q-o-q (%) 13 15

Zee Entertainment Consolidated (23/01/2013)

Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit 3QFY13E 910 226 24.8 173 3QFY12 755 216 28.6 138 26 y-o-y (%) 21 5 2QFY13 923 218 23.6 187 (8) q-o-q (%) (1) 4

Economic and Political News

Diesel price hike to have benign impact on inflation: Montek Singh Ahluwalia FMC to hold stakeholders meet on Jan 21, 2012 State government buses to see hike in passenger fares I&B Ministry looks at regulating local cable TV channels Diesel price hike will push telecom tower cost by `2,100cr: TAIPA

Corporate News
Aurobindo Pharma gets USFDA approval for hypertension drug IDBI to raise `3,000cr via QIBs, preference shares to government Dalmia Cement set to invest `1,800cr by FY2014 Hindalco to acquire alumina refinery from Novelis Colgate Palmolive in talks with protesting workers of Goa unit J K Cement plans to raise up to `200cr via QIP Reliance Industries terminates US lobbying L&T Finance in talks to buy Morgan Stanley's wealth business

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

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