Market Outlook

June 14, 2013

Dealer’s Diary
Indian markets are expected to open in green today, tracking positive opening
trades in the SGX Nifty and most of the Asian indices. Asian markets are trading
higher, as U.S. economic data beat estimates and on bets that the Federal
Reserve will keep its record stimulus.
US markets moved mostly higher over the course of the trading day on Thursday,
offsetting the weakness seen over the past few trading sessions, on the back of
better than expected US retail sales and jobless data. Meanwhile, the
European markets trimmed their early losses in the afternoon following the release
of upbeat US economic data.
Back home, Indian markets fell sharply on Thursday, mirroring weak Asian and
European cues as investors become anxious about central banks' stimulus policies.
Weak global cues dampened the investor enthusiasm over Fitch's move to upgrade
India's sovereign ratings outlook. On Friday, Investors will lookout for another
batch of U.S. economic data releases and India WPI Inflation data for May 2013.

Domestic Indices

Chg (%)

(Pts)

(Close)

BSE Sensex

(1.1)

Nifty

(1.1)

(61)

5,699

MID CAP

(1.4)

(85)

6,108

SMALL CAP

(1.1)

(61)

5,714

BSE HC

(1.8)

(159)

8,627

BSE PSU

(1.7)

(108)

6,240

BANKEX

(1.2)

(160) 13,359

AUTO

(2.3)

(247) 10,385

METAL

(1.1)

(90)

7,747

OIL & GAS

(0.7)

(58)

8,352

BSE IT

(1.7)

(101)

5,969

(Pts)

(Close)

Global Indices

Chg (%)

Dow Jones

1.2

(214) 18,827

181 15,176

NASDAQ

1.3

45

3,445

Markets Today

FTSE

0.1

5

6,305

The trend deciding level for the day is 18,836 / 5,704 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 18,906 – 18,984 / 5,725 – 5,751 levels. However, if NIFTY trades below
18,836 / 5,704 levels for the first half-an-hour of trade then it may correct up to
18,757 – 18,687 / 5,678 – 5,657 levels.

Nikkei

(6.4)

(844) 12,445

Hang Sang

(2.2)

(468) 20,887

Straits Times

(0.7)

(23)

3,131

Shanghai Com

(2.7)

(61)

2,148

Indices
SENSEX
NIFTY

Indian ADR

Chg (%)

(Pts)

(Close)

INFY

(0.3)

(0.1)

$41.7

WIT

(0.4)

(0.0)

$7.4

IBN

0.1

0.1

$40.6

HDB

1.8

0.7

$37.6

S2
18,687
5,657

S1
18,757
5,678

PIVOT
18,836
5,704

R1
18,906
5,725

R2
18,984
5,751

News Analysis


IIP growth revised slightly upwards after erroneous reporting
Infosys, Wipro announce wage hike
JLR registers strong growth in retail sales in May 2013
Refer detailed news analysis on the following page

Purch
2,523
535

Sales
3,567
513

Net
(1,044)
22

MTD
(408)
(635)

YTD
81,428
(12,711)

FII Derivatives (June 13, 2013)
` cr
Index Futures
Stock Futures

Purch
1,566
1,559

Sales
2,050
1,555

Net
(484)
4

Open Interest
10,086
28,581

Gainers / Losers
Company

Gainers
Price (`)
chg (%)

Jet Air India

Company

Losers
Price (`)
chg (%)

433

6.2

Apollo Tyres

69

(25.4)

97

4.8

Sun TV Network

356

(10.9)

Titan Inds

214

4.3

MMTC

190

(10.0)

Bharti Airtel

288

3.5

JSW ENERGY

47

(6.2)

United Brew-$

670

3.2

Indiabulls Real Est

66

(5.8)

Hindalco Inds

www.angelbroking.com

BSE

NSE

Advances

735

349

1,586

1,010

138

84

Declines

Net Inflows (June 12, 2013)
` cr
FII
MFs

Advances / Declines

Unchanged
Volumes (` cr)

BSE

1,841

NSE

9,999

Market Outlook
June 14, 2013

IIP growth revised slightly upwards after erroneous reporting
As per the Quick Estimates on the Index of Industrial Production (IIP), industrial
growth in April 2013 came in at 2.0%. But due to erroneous reporting, growth has
been revised upwards by the Central Statistical Office (twice in a single day) to
2.3%. The revision comes from an error in the production data for the electricity
sector which had previously reported marginal growth of 0.7%. The revised
electricity production now stands at 4.2% similar to the previous year’s growth
figure of 4.6%. Manufacturing and Mining continue to remain at 2.8% and -3%
respectively.

Infosys, Wipro announce wage hike
Infosys, yesterday, announced salary increments for its employees for FY2014.
Wage hike will be 8% on an average for employees based in India and 3% for
employees who are based in other geographies. The increments will be effective
from July 1, 2013. The global sales force will see an average increase of 8% and
will be effective May 1, 2013. According to the company, wage hikes were
inevitable due to competitive pressures. The company said that it has to increase its
employee compensation more rapidly than in the past to remain competitive with
other employers, or seek to recruit in other low labor cost regions to keep wage
costs low. Infosys, which has been going through a tough phase, has been
reporting lower growth than peers and there was speculation that it might delay
hikes this year as well. Last year, salary increases were given only in October,
when the company came under pressure from increments offered by peers. This is
a positive announcement b the company.
Meanwhile, Wipro also has announced annual wage hike for its employees. The
normal wage hike cycle of Wipro falls in June so this is on the expected lines. The
wage hike is in Wipro is 6-8% for offshore employees and 2-3% for onsite
employees. We maintain our Neutral rating on Infosys and Accumulate rating on
Wipro with a target price of `485.

JLR registers strong growth in retail sales in May 2013
Jaguar and Land Rover (JLR) registered a strong retail volume growth of 12.3% yoy
(13.9% mom) to 32,477 units in May 2013, which was better-than-expected,
driven by continued momentum in the recently launched models. Geographically,
JLR volumes grew in every major region with Asia Pacific, Europe, China and
North America registering growth of 41%, 16%, 11% and 10% yoy respectively.
Total volumes ex. Evoque too registered a robust growth of 14.6% yoy (12.3%
mom) driven by the strong growth in the newly launched Jaguar models.
Jaguar sales grew on the back of the growth in the XF model (32.3% yoy and
17.7% mom) led by the introduction of the Sportbrake, AWD and smaller engine
variants. Jaguar sales were up in all the major markets with China, Asia Pacific,
North America and Europe witnessing an impressive growth of 98%, 37%, 34%
and 20% yoy respectively.

www.angelbroking.com

Market Outlook
June 14, 2013

Land Rover sales grew at a healthy rate of 8% yoy (10.6% mom) to 26,303 units
led by sustained growth in Freelander, Evoque and continuous ramp-up in New
Range Rover. Land Rover witnessed strong growth in Asia Pacific and Europe with
volumes growing by 42% and 15% yoy respectively. However, volumes in UK and
China region remained flat during the month.
We retain our positive view on JLR and expect an ~13% volume CAGR over
FY2013-15E, driven by continued momentum in the luxury vehicle market,
coupled with the strong product launches that are lined up in FY2014 (expected to
launch 8 new refreshes/models in FY2014) and the success of the model launched
in 4QFY2013. We maintain our Buy rating on the stock with a sum-of-the-parts
(SOTP) target price of `347.

Economic and Political News


FDI, FII reforms on the anvil: FM
Sebi board to meet on June 25 to mull Chandrasekhar panel report
Govt. rules out further duty hike on gold imports

Corporate News




Unilever cleared to increase Hindustan stake from June 21
Wipro receives fresh tax demand of `816 crore
FIPB to take up Jet-Etihad FDI proposals today
Ranbaxy eyes US drug launches with sales exclusivity
GMR's plan to reverse-list Indonesian asset hits hurdle

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

www.angelbroking.com

Market Outlook
June 14, 2013
Global economic events release calendar
Date

Time

Country Event Description

Unit

Period

Bloomberg Data
Last Reported Estimated

June 14, 2013

12:00PM

India

2:30PM

Euro Zone Euro-Zone CPI (YoY)

Monthly Wholesale Prices YoY%

6:00PM

US

Producer Price Index (mom)

% Change

May

4.89

4.87

%

May F

1.20

1.40

% Change

May

(0.70)

0.10

6:45PM

US

Industrial Production

%

May

(0.53)

0.20

11:00AM

India

RBI Repo rate

%

Jun 17

7.25

7.25

11:00AM

India

RBI Cash Reserve ratio

%

Jun 17

4.00

4.00

11:00AM

India

RBI Reverse Repo rate

%

Jun 17

6.25

6.25

2:00PM

UK

CPI (YoY)

% Change

May

2.40

--

6:00PM

US

Housing Starts

Thousands

May

853.00

950.00

6:00PM

US

Building permits

Thousands

May

1,005.00

988.00

6:00PM

US

Consumer price index (mom)

% Change

May

(0.40)

0.20

June 19, 2013

11:30PM

US

FOMC rate decision

%

Jun 19

0.25

0.25

June 20, 2013

1:00PM

Germany PMI Manufacturing

Value

Jun A

49.40

--

1:00PM

Germany PMI Services

Value

Jun A

49.70

--

7:30PM

Euro Zone Euro-Zone Consumer Confidence

Value

Jun A

(21.90)

--

7:30PM

US

Existing home sales

Million

May

4.97

5.00

7:30PM

US

Consumer Confidence

S.A./ 1985=100

Jun

76.20

--

7:30PM

US

New home sales

Thousands

May

454.00

--

June 26, 2013

6:00PM

US

GDP Qoq (Annualised)

% Change

1Q T

2.40

--

June 27, 2013

1:25PM

Germany Unemployment change (000's)

Thousands

Jun

21.00

--

2:00PM

UK

GDP (YoY)

% Change

1Q F

0.60

--

6:30AM

China

PMI Manufacturing

Value

Jun

50.80

--

2:00PM

UK

PMI Manufacturing

Value

Jun

51.30

--

4:30PM

UK

BOE Announces rates

% Ratio

Jul 4

0.50

0.50

5:15PM

Euro Zone ECB announces interest rates

6:00PM

US

Change in Nonfarm payrolls

June 17, 2013

June 18, 2013

June 25, 2013

July 1, 2013
July 4, 2013
July 5, 2013

%

Jul 4

0.50

--

Thousands

Jun

175.00

--

6:00PM

US

Unnemployment rate

%

Jun

7.60

--

July 9, 2013

7:00AM

China

Consumer Price Index (YoY)

% Change

Jun

2.10

--

July 10, 2013

4:29PM

China

Exports YoY%

% Change

Jun

1.00

--

July 15, 2013

7:30AM

China

Industrial Production (YoY)

% Change

Jun

9.20

--

7:30AM

China

Real GDP (YoY)

% Change

2Q

7.70

--

Source: Bloomberg, Angel Research

Market Outlook
June 14, 2013

Macro watch
Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

(%)
10.0

11.4
9.2

6.0
4.0
2.0

7.5

Apr-13

Jun-12

Mfg. PMI

58.0
7.6

Mar-13

(4.0)

Exhibit 4: Manufacturing and services PMI

(%)
8.0

(1.0) (0.6)

(0.7)

(2.0)

Source: MOSPI, Angel Research

Exhibit 3: Monthly WPI inflation trends

Services PMI

8.1
7.3

7.2

7.3

7.3

7.3

56.0
6.0
4.9

54.0
52.0

Source: MOSPI, Angel Research

May-13

Apr-13

Mar-13

Feb-13

Jan-13

Dec-12

Nov-12

Oct-12

Sep-12

Aug-12

Jul-12

Jun-12

May-12

Apr-12

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

Exhibit 5: Exports and imports growth trends
(%)

48.0

Mar-12

Apr-13

Mar-13

Feb-13

Jan-13

Dec-12

Nov-12

Oct-12

Sep-12

Aug-12

Jul-12

50.0

Jun-12

8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0

(0.1)

May-12

4QFY13

3QFY13

2QFY13

1QFY13

4QFY12

3QFY12

2QFY12

1QFY12

4QFY11

3QFY11

2QFY11

1QFY11

4QFY10

3QFY10

Source: CSO, Angel Research

9.0

(2.0)

Jan-13

4.7 4.8

2.0
0.5

Dec-12

5.1 5.4 5.2

3.4

2.5

2.0

Nov-12

6.0

2.5

Oct-12

6.5

Feb-13

7.5

Sep-12

7.7

Aug-12

8.6

8.4

8.0

9.9

Jul-12

9.5

9.3

2QFY10

12.0
11.0
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0

Exports yoy growth

Exhibit 6: Key policy rates
Repo rate

(%)
9.00

Imports yoy growth

15.0

Reverse Repo rate

CRR

7.25

8.00
7.00
6.00

6.25

5.00
4.00
4.00

Source: Bloomberg, Angel Research

www.angelbroking.com

Source: RBI, Angel Research

Apr-13

Mar-13

Feb-13

Jan-13

Dec-12

Nov-12

Oct-12

Sep-12

Aug-12

Jul-12

(15.0)

Jun-12

3.00

May-13

Apr-13

Mar-13

Feb-13

Jan-13

Dec-12

Nov-12

Oct-12

Sep-12

Aug-12

Jul-12

Jun-12

May-12

0.0

Market Outlook
June 14, 2013

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

( Č)

Price ( Č)

( Č cr )

Sales ( Č cr )
FY14E

OPM(%)

EPS ( Č)

FY15E

FY14E

FY15E

FY14E

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

Agri / Agri Chemical
Rallis

Neutral

139

-

2,706

1,657

1,906

14.1

14.1

7.7

8.9

18.1

15.6

3.8

3.2

22.2

21.9

1.6

1.3

United Phosphorus

Buy

140

232

6,203

10,298

11,310

16.5

16.5

20.5

23.2

6.8

6.0

1.1

1.0

18.0

17.4

0.6

0.5

Amara Raja Batteries

Buy

247

285

4,211

3,418

3,892

14.5

14.5

18.5

20.4

13.3

12.1

3.2

2.6

26.6

23.8

1.3

1.0

Apollo Tyres

Buy

69

104

3,458

13,852

15,487

11.4

11.5

12.8

14.9

5.3

4.6

0.9

0.7

17.5

17.3

0.4

0.4

Ashok Leyland

Buy

21

27

5,707

14,038

16,442

7.6

8.7

1.1

2.2

20.5

9.6

1.8

1.6

6.2

12.5

0.5

0.4

Automotive Axle#

Neutral

234

-

353

834

965

9.3

10.6

17.3

27.1

13.5

8.6

1.3

1.2

9.5

14.0

0.5

0.4

Bajaj Auto

Buy

1,708

2,056

49,428

22,684

25,908

18.0

18.5

117.3

137.1

14.6

12.5

5.2

4.2

39.9

37.2

1.8

1.5

Bharat Forge

Neutral

222

-

5,176

6,198

6,793

14.6

14.9

14.5

17.3

15.3

12.9

2.0

1.8

13.6

14.7

0.9

0.8

Bosch India*

Neutral

8,981

-

28,199

9,821

11,394

17.0

17.3

373.5

438.7

24.0

20.5

4.3

3.7

18.0

17.9

2.6

2.2

CEAT

Buy

105

170

361

5,325

5,974

8.4

8.3

40.8

48.5

2.6

2.2

0.4

0.4

17.3

17.6

0.2

0.2

Exide Industries

Buy

126

150

10,672

7,053

8,061

14.2

14.5

7.8

9.1

16.0

13.8

2.7

2.4

18.1

18.2

1.2

1.0

FAG Bearings*

Neutral

1,441

-

2,395

1,525

1,742

14.5

15.7

88.4

109.5

16.3

13.2

2.4

2.0

15.5

16.5

1.4

1.2

Hero Motocorp

Accumulate

1,609

1,819

32,127

25,274

27,658

14.1

13.7

110.2

139.9

14.6

11.5

5.3

4.2

39.8

40.7

1.1

0.9

JK Tyre

Buy

107

154

441

7,972

8,754

7.1

7.1

37.5

44.0

2.9

2.4

0.4

0.4

16.4

16.6

0.3

0.3

Auto & Auto Ancillary

Mahindra and Mahindra Buy

923

1,090

56,664

45,254

51,197

11.4

11.7

61.2

70.2

15.1

13.1

3.2

2.7

22.7

21.9

1.0

0.8

1,456

1,847

43,968

48,455

55,723

11.2

10.9

107.8

123.2

13.5

11.8

2.0

1.8

16.2

16.0

0.7

0.6

198

222

11,616

28,442

31,493

7.5

7.8

12.5

14.8

15.8

13.4

3.9

3.1

27.5

25.8

0.6

0.5

Buy

22

30

131

1,479

1,685

10.0

9.9

5.5

7.5

4.0

2.9

0.4

0.4

11.1

13.7

0.4

0.3

Tata Motors

Buy

283

347

75,768 215,016 237,404

13.3

13.6

36.2

41.5

7.8

6.8

1.7

1.4

24.6

23.2

0.4

0.4

TVS Motor

Buy

35

41

1,656

7,715

8,584

6.0

6.1

5.0

5.8

7.0

6.0

1.2

1.0

18.1

18.5

0.2

0.1

ABB*

Sell

592

461

12,553

8,073

9,052

5.5

6.9

11.5

16.9

51.4

35.0

4.7

4.5

9.3

13.1

1.5

1.3

BGR Energy

Neutral

133

-

963

4,114

4,886

11.4

10.7

24.9

28.0

5.4

4.8

0.7

0.7

25.2

22.6

0.5

0.5

BHEL

Neutral

175

-

42,833

44,054

39,326

16.8

15.1

20.6

16.1

8.5

10.9

1.9

1.7

23.5

16.1

0.9

0.9

Blue Star

Buy

160

230

1,434

2,896

3,087

5.6

6.2

9.3

11.7

17.1

13.6

2.8

2.4

17.6

19.2

0.6

0.5

Crompton Greaves

Buy

85

117

5,459

13,446

15,272

6.7

7.6

6.6

8.9

12.8

9.6

1.4

1.3

11.4

14.0

0.5

0.5

Jyoti Structures

Neutral

24

-

195

3,360

3,597

9.7

9.8

7.3

10.2

3.2

2.3

0.7

0.6

8.8

11.4

0.3

0.3

KEC International

Buy

37

63

938

7,709

8,399

6.7

7.2

6.1

8.5

6.0

4.3

0.8

0.7

20.2

23.0

0.3

0.3

Thermax

Neutral

595

-

7,087

5,780

6,430

9.5

9.6

29.8

33.0

20.0

18.0

3.4

2.9

17.9

17.4

1.0

0.9

1,205

1,361

22,615

11,979

13,254

19.7

21.3

77.1

91.4

15.6

13.2

2.8

2.5

18.7

20.0

1.6

1.4

Maruti

Buy

Motherson Sumi

Accumulate

Subros

Capital Goods

Cement
ACC

Accumulate

www.angelbroking.com

Market Outlook
June 14, 2013

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Č cr )

OPM(%)

EPS ( Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

( Č)

Price ( Č)

( Č cr )

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

Cement
Ambuja Cements

Neutral

175

-

27,016

10,232

11,762

23.5

24.5

10.3

12.2

17.0

14.4

2.8

2.6

17.2

18.6

2.1

1.7

India Cements

Neutral

63

-

1,948

4,929

5,434

17.4

17.1

8.9

10.9

7.1

5.8

0.5

0.5

7.7

9.1

0.7

0.6

J K Lakshmi Cement

Buy

106

143

1,241

2,247

2,742

21.0

23.1

17.8

21.8

5.9

4.8

0.9

0.7

15.5

16.4

0.5

0.9

Madras Cements

Neutral

235

-

5,590

4,234

4,788

23.9

24.0

18.5

22.8

12.7

10.3

2.0

1.7

17.2

18.2

1.7

1.4

Shree Cement^

Neutral

4,615

-

16,076

6,540

7,452

27.4

26.6

319.7

369.9

14.4

12.5

3.6

2.9

27.5

25.4

1.8

1.4

UltraTech Cement

Neutral

1,822

-

49,964

21,947

25,049

23.8

23.8

106.1

119.8

17.2

15.2

2.8

2.5

17.7

17.3

2.4

2.0

189

255

996

1,928

2,234

21.0

21.5

18.0

22.2

10.5

8.5

0.9

0.8

10.2

10.1

1.9

1.9

10

-

185

2,281

2,492

5.9

6.9

0.7

2.0

14.7

5.0

0.3

0.3

2.3

6.5

0.4

0.3

Construction
Ashoka Buildcon

Buy

Consolidated Co

Neutral

IRB Infra

Buy

114

157

3,787

3,997

4,312

45.5

46.4

15.7

16.6

7.3

6.9

1.1

0.9

15.2

14.5

3.4

3.6

ITNL

Buy

175

230

3,407

7,444

8,041

27.4

28.9

29.8

32.1

5.9

5.5

0.8

0.7

14.9

14.2

2.6

2.6

IVRCL Infra

Buy

16

29

480

5,673

5,892

8.1

8.4

1.4

1.8

10.9

8.5

0.2

0.2

2.0

2.6

0.5

0.5

Jaiprakash Asso.

Buy

61

90

13,481

14,850

15,631

24.9

25.1

2.5

2.9

24.0

21.3

1.0

0.9

4.2

4.7

2.7

2.7

Larsen & Toubro

Buy

1,393

1,761

85,837

68,946

78,040

10.5

10.5

77.9

88.3

17.9

15.8

2.6

2.3

15.5

15.6

1.4

1.2

Nagarjuna Const.

Buy

29

42

731

6,167

6,945

8.0

8.2

2.7

3.6

10.7

7.8

0.3

0.3

2.7

3.6

0.5

0.5

Punj Lloyd

Neutral

41

-

1,352

12,954

14,740

9.9

9.9

0.5

0.9

80.2

43.7

0.5

0.5

0.6

1.1

0.5

0.5

Sadbhav Engg.

Buy

101

139

1,525

2,462

2,731

10.6

10.6

5.9

6.7

17.2

15.2

1.7

1.5

10.2

10.5

0.9

0.8

Simplex Infra

Buy

91

131

452

6,308

7,033

9.5

9.6

11.9

18.7

7.7

4.9

0.3

0.3

4.5

6.7

0.5

0.5

Unity Infra

Buy

27

41

198

2,146

2,339

13.7

13.8

11.0

11.5

2.4

2.3

0.2

0.2

9.3

9.0

0.6

0.6

Allahabad Bank

Buy

110

144

5,500

6,876

7,545

2.6

2.5

28.2

30.9

3.9

3.6

0.6

0.5

12.8

12.7

-

-

Andhra Bank

Neutral

85

-

4,745

5,254

5,900

2.8

2.8

21.2

22.9

4.0

3.7

0.6

0.5

13.3

13.0

-

-

Axis Bank

Buy

1,269

1,853

59,468

19,055

22,710

3.3

3.2

130.7

152.3

9.7

8.3

1.6

1.4

17.2

17.6

-

-

Bank of Baroda

Buy

625

851

26,310

16,365

18,781

2.2

2.3

121.3

142.5

5.2

4.4

0.8

0.7

15.1

15.7

-

-

Bank of India

Buy

281

350

16,721

14,482

16,383

2.3

2.3

58.1

68.1

4.8

4.1

0.7

0.6

14.4

15.0

-

-

Bank of Maharashtra

Buy

52

64

3,460

4,392

4,743

3.1

3.0

12.6

13.7

4.1

3.8

0.7

0.6

16.8

16.0

-

-

Canara Bank

Buy

381

481

16,874

11,928

13,467

2.1

2.2

74.8

86.0

5.1

4.4

0.7

0.6

13.7

14.2

-

-

Central Bank

Accumulate

63

69

6,576

8,249

9,211

2.4

2.5

14.9

18.2

4.2

3.5

0.6

0.5

12.5

13.8

-

-

Corporation Bank

Buy

372

495

5,695

5,558

6,121

2.0

2.0

98.4

107.7

3.8

3.5

0.6

0.5

14.9

14.5

-

-

Dena Bank

Buy

83

97

2,893

3,187

3,582

2.3

2.4

23.8

25.5

3.5

3.2

0.5

0.5

15.9

15.1

-

-

Federal Bank

Accumulate

422

459

7,216

2,873

3,413

3.0

3.1

52.7

62.0

8.0

6.8

1.0

0.9

13.4

14.2

-

-

Financials

www.angelbroking.com

Market Outlook
June 14, 2013

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

( Č)

Price ( Č)

( Č cr )

Sales ( Č cr )

OPM(%)

EPS ( Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

Financials
HDFC

Accumulate

813

933

125,919

8,573

10,142

3.6

3.6

37.0

43.6

22.0

18.6

4.5

4.0

30.0

30.3

-

-

HDFC Bank

Accumulate

656

722

156,389

27,682

33,916

4.6

4.6

35.3

42.7

18.6

15.4

3.7

3.1

21.3

21.8

-

-

ICICI Bank

Buy

1,068

1,503

123,236

25,705

30,330

3.1

3.2

83.9

96.3

12.7

11.1

1.7

1.5

15.2

15.7

-

-

IDBI Bank

Buy

75

93

10,022

9,477

10,678

2.0

2.1

19.6

22.6

3.9

3.3

0.5

0.4

12.8

13.4

-

-

Indian Bank

Buy

128

185

5,520

6,185

6,978

3.0

3.0

37.0

42.2

3.5

3.0

0.5

0.5

14.8

15.1

-

-

IOB

Buy

57

66

5,290

8,142

8,956

2.5

2.5

16.5

20.7

3.5

2.8

0.4

0.4

11.8

13.4

-

-

J & K Bank

Neutral

1,218

-

5,904

3,074

3,140

3.5

3.2

224.7

201.5

5.4

6.0

1.0

0.9

20.6

16.1

-

-

LIC Housing Finance

Buy

250

298

12,622

2,113

2,525

2.3

2.3

25.4

29.2

9.9

8.6

1.7

1.5

18.4

18.3

-

-

Oriental Bank

Buy

229

285

6,674

6,835

7,588

2.6

2.6

56.5

63.8

4.1

3.6

0.5

0.5

13.1

13.4

-

-

Punjab Natl.Bank

Buy

721

994

25,487

20,876

23,929

3.3

3.4

151.7

177.0

4.8

4.1

0.8

0.7

16.1

16.5

-

-

South Ind.Bank

Neutral

St Bk of India

Buy

Syndicate Bank

Accumulate

UCO Bank

Neutral

Union Bank
United Bank

24

-

3,277

1,839

2,091

2.9

2.8

4.2

4.5

5.8

5.4

1.0

0.9

18.2

17.0

-

-

2,020

2,637

138,161

67,243

76,612

3.1

3.0

242.4

284.8

8.3

7.1

1.3

1.1

16.3

16.8

-

-

127

142

7,630

7,238

8,249

2.7

2.6

27.1

30.4

4.7

4.2

0.7

0.6

16.1

15.9

-

-

76

-

5,720

6,250

6,738

2.6

2.5

12.1

14.7

6.3

5.2

1.0

0.8

11.8

13.0

-

-

Buy

208

260

12,398

11,229

12,794

2.6

2.6

40.7

48.2

5.1

4.3

0.7

0.6

14.6

15.4

-

-

Buy

50

65

1,859

3,443

3,998

2.4

2.6

15.1

20.4

3.3

2.4

0.4

0.4

12.1

14.8

-

-

Vijaya Bank

Neutral

50

-

2,478

2,730

3,059

1.9

2.0

10.2

11.3

4.9

4.4

0.6

0.5

11.8

12.0

-

-

Yes Bank

Accumulate

456

508

16,395

4,390

5,411

2.8

2.8

41.6

47.9

11.0

9.5

2.3

1.9

23.2

22.1

-

-

FMCG
Asian Paints

Neutral

4,442

-

42,606

12,332

14,524

16.5

16.3

141.6

162.7

31.4

27.3

9.9

7.9

35.4

32.2

3.3

2.8

Britannia

Neutral

674

-

8,066

6,417

7,502

6.1

6.3

23.2

27.9

29.1

24.2

10.0

7.9

38.3

36.4

1.2

1.0

Colgate

Neutral

1,310

-

17,821

3,588

4,130

20.5

20.9

44.2

51.8

29.7

25.3

28.9

21.1

108.6

96.2

4.8

4.1

Dabur India

Neutral

150

-

26,222

7,183

8,340

16.8

16.8

5.4

6.3

28.0

23.9

10.9

8.5

41.5

40.1

3.6

3.1

GlaxoSmith Con*

Neutral

5,683

-

23,898

3,617

4,259

16.1

16.4

122.2

148.7

46.5

38.2

14.5

11.6

34.1

33.7

6.1

5.1

Godrej Consumer

Neutral

775

-

26,380

7,801

9,017

16.2

15.9

25.1

29.7

30.8

26.1

6.7

5.5

24.9

24.2

3.5

3.0

HUL

Neutral

595

-

128,613

29,167

33,164

13.6

13.7

17.1

18.4

34.8

32.3

33.5

24.2

113.4

87.0

4.3

3.7

ITC

Neutral

327

-

258,232

34,294

39,991

36.8

37.0

11.3

13.3

29.0

24.5

9.6

7.7

36.1

34.9

7.2

6.1

Marico

Neutral

222

-

14,318

5,273

6,044

14.8

14.9

7.3

8.7

30.6

25.6

6.0

4.9

21.4

21.0

2.7

2.3

Nestle*

Neutral

5,111

-

49,275

9,447

10,968

22.1

22.3

127.5

154.1

40.1

33.2

20.0

14.5

57.7

50.7

5.2

4.4

Tata Global

Neutral

139

-

8,602

8,069

8,957

9.8

9.7

7.8

8.6

17.8

16.2

2.1

2.0

9.5

9.7

1.0

0.9

www.angelbroking.com

Market Outlook
June 14, 2013

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Č cr )

OPM(%)

EPS ( Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

( Č)

Price ( Č)

( Č cr )

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

755

863

52,613

28,633

32,216

21.5

20.7

57.3

61.7

13.2

12.2

3.1

2.6

24.0

21.5

1.7

1.4

79

96

2,358

2,091

2,289

19.0

18.8

10.6

11.3

7.4

7.0

1.7

1.5

22.8

21.7

1.0

0.8

IT
HCL Tech^

Accumulate

Hexaware*

Buy

Infosys

Neutral

2,379

-

136,617

43,338

47,244

27.5

27.7

169.4

182.6

14.1

13.0

2.9

2.5

20.8

19.3

2.5

2.2

Infotech Enterprises

Accumulate

170

185

1,897

1,956

2,174

17.9

17.7

20.4

21.9

8.3

7.8

1.2

1.1

14.7

13.7

0.6

0.5

KPIT Cummins

Buy

111

135

2,141

2,513

2,819

16.1

15.5

12.6

14.0

8.8

7.9

1.5

1.3

17.9

16.6

0.8

0.6

Mahindra Satyam

Accumulate

112

126

13,157

8,278

9,062

20.3

20.1

10.5

11.4

10.6

9.8

2.5

2.0

23.1

20.0

1.2

1.0

Mindtree

Accumulate

801

920

3,326

2,599

2,871

19.4

19.2

85.2

92.3

9.4

8.7

2.0

1.6

21.4

18.9

1.0

0.8

Mphasis&

Neutral

390

-

8,192

6,096

6,646

17.6

17.4

38.1

41.6

10.2

9.4

1.5

1.3

14.2

13.7

0.9

0.7

NIIT

Buy

21

30

347

1,144

1,267

9.0

9.1

4.3

5.4

4.9

3.9

0.5

0.5

10.3

12.0

0.1

-

Persistent

Buy

501

593

2,006

1,445

1,617

25.2

25.0

55.3

59.3

9.1

8.5

1.7

1.4

18.2

16.5

1.0

0.7

TCS

Accumulate

1,444

1,585

282,672

71,833

81,893

28.4

28.0

78.5

88.0

18.4

16.4

5.6

4.6

30.2

27.9

3.7

3.2

Tech Mahindra

Buy

968

1,170

12,434

7,779

8,398

19.7

19.3

107.4

117.8

9.0

8.2

1.9

1.6

21.2

19.0

1.6

1.4

Wipro

Accumulate

340

385

83,775

40,173

43,697

20.4

20.6

26.2

28.5

13.0

11.9

2.6

2.2

19.7

18.4

1.6

1.3

D B Corp

Buy

231

290

4,244

1,750

1,925

25.1

26.6

14.2

16.8

16.3

13.8

3.5

3.0

23.4

23.4

2.3

2.1

HT Media

Buy

100

117

2,351

2,205

2,380

15.1

15.6

8.3

9.1

12.1

11.0

1.3

1.2

11.5

11.4

0.7

0.6

Jagran Prakashan

Buy

91

119

3,024

1,664

1,825

20.9

23.0

6.4

7.8

14.2

11.7

2.9

2.6

21.0

23.1

1.9

1.7

PVR

Neutral

322

-

1,276

1,359

1,540

17.3

17.4

17.2

21.6

18.7

15.0

1.9

1.7

10.3

12.0

1.4

1.2

Sun TV Network

Neutral

356

-

14,024

2,287

2,551

69.7

70.5

20.0

23.3

17.8

15.3

4.4

3.9

26.4

27.3

5.8

5.1

Bhushan Steel

Neutral

462

-

10,470

13,794

17,088

30.9

33.5

49.3

66.6

9.4

6.9

1.0

0.9

11.3

13.5

2.4

1.9

Coal India

Buy

299

345

188,891

72,174

76,311

33.3

28.4

28.4

30.9

10.5

9.7

2.9

2.5

37.6

36.2

1.8

1.6

Electrosteel Castings

Buy

14

24

441

1,976

2,017

11.8

12.7

1.3

2.6

10.7

5.2

0.1

0.1

2.6

5.2

0.5

0.1

GMDC

Buy

122

193

3,883

1,920

2,239

53.2

52.9

21.6

25.0

5.7

4.9

1.3

1.1

25.1

23.8

1.5

1.1

Hind. Zinc

Buy

108

145

45,528

12,358

13,659

51.4

51.6

16.0

17.6

6.7

6.1

1.2

1.1

19.4

18.4

1.4

0.9

Hindalco

Neutral

97

-

18,543

89,352

93,672

8.8

9.2

13.4

15.0

7.2

6.5

0.5

0.5

7.3

7.6

0.6

0.5

JSW Steel

Neutral

671

-

14,975

39,973

40,926

17.2

17.0

71.9

82.8

9.3

8.1

0.8

0.7

9.0

9.6

0.7

0.6

MOIL

Buy

204

248

3,430

1,010

1,046

46.5

47.6

26.8

28.8

7.6

7.1

1.1

1.0

15.4

14.7

1.0

0.7

Monnet Ispat

Buy

122

193

780

2,326

2,709

21.4

23.1

33.3

43.1

3.7

2.8

0.3

0.3

8.3

9.9

1.4

1.0

Nalco

Neutral

30

-

7,629

7,656

7,988

13.1

13.5

2.6

2.6

11.6

11.3

0.6

0.6

5.5

5.5

0.4

0.5

NMDC

Buy

107

156

42,601

10,461

11,892

71.6

72.6

16.3

17.6

6.6

6.1

1.4

1.2

22.1

21.4

2.3

2.0

Media

Metals & Mining

www.angelbroking.com

Market Outlook
June 14, 2013

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Č cr )

( Č)

Price ( Č)

( Č cr )

FY14E

FY15E

OPM(%)

EPS ( Č)

FY14E

FY15E

FY14E

PER(x)

P/BV(x)

RoE(%)

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

EV/Sales(x)

FY15E

FY14E

FY15E

Metals & Mining
SAIL

Neutral

Sesa Goa

Buy

53

-

22,075

44,060

54,786

9.4

11.5

5.2

7.2

10.2

7.5

0.5

0.5

5.2

6.8

0.8

0.6

140

166

12,172

3,742

4,426

32.9

32.8

30.0

29.8

4.7

4.7

0.6

0.6

14.3

12.5

4.0

3.3

Sterlite Inds
Tata Steel

Buy

82

100

27,389

44,462

45,568

23.2

24.7

18.1

20.2

4.5

4.0

0.5

0.4

11.3

11.4

0.6

0.5

Buy

266

378

25,849 140,917 151,537

9.7

10.8

30.9

47.6

8.6

5.6

0.8

0.7

9.6

13.4

0.6

0.5

Sarda

Buy

101

153

363

1,494

1,568

19.1

20.3

31.3

36.5

3.2

2.8

0.4

0.3

11.8

12.4

0.6

0.5

Prakash Industries
Godawari Power and
Ispat
Oil & Gas

Buy

30

45

405

2,615

2,776

12.1

12.0

9.8

10.4

3.1

2.9

0.2

0.2

6.5

6.5

0.4

0.4

Buy

76

102

249

2,344

2,509

14.9

15.4

38.7

47.0

2.0

1.6

0.2

0.2

12.3

12.9

0.5

0.4

Cairn India

Buy

290

345

55,398

16,482

16,228

69.4

53.3

53.3

49.6

5.4

5.9

0.8

0.8

16.5

13.6

2.0

1.7

GAIL

Neutral

297

-

37,661

52,102

52,876

15.7

16.1

34.1

35.7

8.7

8.3

1.4

1.2

16.4

15.3

0.3

0.2

ONGC

Buy

309

372

264,493 170,063 193,024

36.3

36.9

34.7

38.3

8.9

8.1

1.5

1.4

18.3

17.9

1.3

1.0

Reliance Industries

Neutral

789

-

254,842 380,031 407,721

9.9

69.3

69.3

78.0

11.4

10.1

1.1

1.0

11.5

11.7

0.6

0.6

Gujarat Gas*

Neutral

208

-

2,670

3,707

3,850

11.7

12.4

23.7

25.7

8.8

8.1

2.5

2.1

29.6

28.2

0.6

0.5

Indraprastha Gas

Neutral

279

-

3,905

3,700

4,218

23.4

22.8

26.7

30.4

10.5

9.2

2.2

1.8

22.7

21.8

1.1

0.9

Petronet LNG
Gujarat State Petronet
Ltd.
Pharmaceuticals

Buy

132

167

9,870

40,356

40,872

5.8

6.4

15.0

16.7

8.8

7.9

1.8

1.6

23.0

21.5

0.3

0.3

53

-

3,005

1,171

1,287

91.9

91.9

10.1

11.3

5.3

4.7

0.9

0.7

17.3

16.8

-

-

Alembic Pharma

Accumulate

129

139

2,427

1,736

2,008

17.1

18.9

10.7

13.9

12.0

9.3

3.8

2.8

35.0

34.7

1.5

1.2

Aurobindo Pharma

Buy

166

271

4,828

6,641

7,637

15.9

15.9

17.3

20.6

9.6

8.1

1.5

1.3

19.5

18.9

1.2

1.0

Aventis*

Neutral

2,470

-

5,688

1,682

1,917

16.6

16.6

92.4

99.1

26.7

24.9

3.8

3.8

15.7

14.8

3.0

2.5

Cadila Healthcare

Buy

741

929

15,168

7,280

8,640

15.5

15.7

38.3

46.5

19.3

15.9

4.2

3.4

23.5

23.5

2.4

2.0

Cipla

Buy

379

477

30,419

9,274

10,796

23.1

23.1

21.0

23.8

18.0

15.9

2.9

2.5

17.2

16.8

3.0

2.5

Dr Reddy's

Buy

2,157

2,535

36,613

13,377

15,350

20.4

20.1

112.3

126.8

19.2

17.0

4.1

3.4

23.5

21.8

2.8

2.4

Dishman Pharma

Buy

GSK Pharma*

Neutral

Indoco Remedies

Buy

Ipca labs

Neutral

60

168

480

1,394

1,534

22.5

22.4

15.0

16.8

4.0

3.5

0.4

0.4

11.0

11.2

1.0

0.8

2,469

-

20,912

2,854

3,145

28.6

28.6

76.6

83.3

32.2

29.6

9.7

8.8

31.1

31.0

6.5

5.8

64

78

594

760

922

15.3

15.3

6.1

7.8

10.6

8.3

1.3

1.1

12.9

14.7

1.0

0.8

Neutral

641

-

8,084

3,243

3,826

20.5

21.5

36.0

44.4

17.8

14.4

4.2

3.3

26.0

25.4

2.6

2.2

Lupin

Buy

760

877

34,026

11,641

13,933

21.3

21.3

34.8

41.8

21.8

18.2

5.1

4.0

26.2

24.8

3.0

2.4

Ranbaxy*

Neutral

374

-

15,818

11,400

12,060

10.5

12.5

17.5

22.5

21.4

16.6

3.4

3.0

17.0

19.1

1.3

1.2

Sun Pharma

Neutral

949

-

98,171

13,509

15,846

41.0

41.0

33.0

39.8

28.8

23.9

5.8

4.8

22.0

22.0

6.7

5.5

70

78

1,059

1,444

1,482

33.4

33.0

13.7

14.8

5.1

4.7

0.6

0.5

12.3

12.0

0.8

0.6

Power
GIPCL

Accumulate

www.angelbroking.com

Market Outlook
June 14, 2013

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Č cr )

OPM(%)

EPS ( Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

( Č)

Price ( Č)

( Č cr )

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

Accumulate

150

163

123,476

76,734

86,680

24.5

24.3

13.4

14.5

11.2

10.3

1.4

1.3

12.8

12.7

2.3

2.2

DLF

Buy

187

236

33,192

8,293

9,622

36.5

36.1

5.7

6.7

32.7

27.7

1.2

1.1

3.7

4.1

6.1

5.1

MLIFE

Buy

398

476

1,623

888

1,002

30.6

30.6

38.8

43.4

10.2

9.2

1.1

1.0

11.2

11.4

2.4

2.1

Bharti Airtel

Buy

288

338

109,217

86,592

95,860

31.4

31.8

10.9

14.5

26.4

19.8

2.0

1.9

7.7

9.3

1.9

1.6

Idea Cellular

Neutral

135

-

44,789

25,122

27,663

27.0

27.2

4.0

4.8

34.0

28.4

2.8

2.6

8.3

9.1

2.2

1.9

Rcom

Neutral

106

-

21,775

22,801

24,628

31.0

31.3

3.6

5.3

29.6

20.0

0.6

0.6

2.2

3.1

2.5

2.2

1,445

1,659

3,070

1,863

2,081

11.8

12.4

71.2

83.0

20.3

17.4

4.1

3.5

21.6

21.5

1.4

1.1

Power
NTPC
Real Estate

Telecom

Others
Abbott India*

Accumulate

Bajaj Electricals

Buy

166

237

1,658

3,885

4,472

5.4

7.2

11.0

19.7

15.2

8.4

2.1

1.7

13.5

20.3

0.4

0.4

Cera Sanitaryware

Accumulate

522

562

660

630

795

14.4

13.6

42.8

51.1

12.2

10.2

2.9

2.3

26.6

25.2

1.0

0.8

Cravatex

Buy

314

459

81

248

284

6.5

7.3

27.2

38.2

11.6

8.2

1.8

1.5

15.7

18.5

0.5

0.4

Finolex Cables

Buy

50

68

757

2,563

2,899

9.8

9.8

10.1

11.3

4.9

4.4

0.7

0.6

14.3

13.8

0.2

0.2

Force Motors

Buy

290

437

377

2,304

2,649

3.1

3.6

28.0

43.7

10.4

6.6

0.3

0.3

3.1

4.7

0.1

0.1

Goodyear India*

Accumulate

301

345

693

1,458

1,542

8.3

9.0

32.3

37.0

9.3

8.1

1.7

1.5

19.5

19.3

0.3

0.2

Hitachi

Buy

130

177

353

1,053

1,169

6.3

7.1

13.8

17.7

9.4

7.3

1.3

1.1

15.0

16.7

0.4

0.3

2,449

-

2,165

1,842

2,131

7.7

7.8

112.4

132.4

21.8

18.5

2.7

2.4

13.3

13.8

1.1

0.9

Honeywell Automation* Neutral
IFB Agro

Buy

159

198

143

495

651

12.7

12.9

29.3

39.5

5.4

4.0

0.8

0.7

15.4

17.6

0.4

0.3

ITD Cementation

Buy

164

234

189

1,430

1,573

11.1

11.0

19.1

26.9

8.6

6.1

0.5

0.4

4.9

6.3

0.5

0.5

Jyothy Laboratories

Neutral

191

-

3,075

1,220

1,476

13.3

13.6

5.5

9.0

34.6

21.1

4.0

3.5

12.1

17.7

2.9

2.3

MRF

Neutral

14,357

-

6,089

11,799

12,587

14.1

13.5 1,792.4 1,802.0

8.0

8.0

1.7

1.4

23.5

19.2

0.6

0.6

Page Industries

Buy

3,988

4,611

4,448

1,057

1,282

19.4

19.6

124.8

153.7

32.0

25.9

15.8

11.7

56.3

51.8

4.3

3.5

Relaxo Footwears

Buy

664

791

797

1,146

1,333

10.9

11.4

45.9

60.9

14.5

10.9

3.0

2.4

23.0

24.6

0.9

0.7

Siyaram Silk Mills

Buy

247

343

232

1,158

1,322

11.9

11.9

72.9

85.7

3.4

2.9

0.6

0.5

19.9

19.6

0.4

0.4

Styrolution ABS India*

Buy

415

617

730

1,068

1,223

9.6

9.6

38.1

44.1

10.9

9.4

1.5

1.3

14.5

14.7

0.7

0.6

TAJ GVK

Buy

60

108

378

300

319

35.8

36.2

7.9

9.1

7.6

6.6

1.0

0.9

13.9

14.4

1.6

1.3

Tata Sponge Iron

Buy

277

371

426

814

849

17.0

17.6

64.6

69.2

4.3

4.0

0.6

0.5

14.5

13.8

0.1

(0.1)

TTK Healthcare

Buy

533

686

414

435

516

6.2

7.1

24.3

33.3

21.9

16.0

3.6

3.1

17.6

20.8

0.8

0.6

Tree House

Accumulate

274

297

986

153

194

53.0

52.8

12.4

15.6

22.1

17.5

2.6

2.3

11.8

13.1

6.6

5.1

TVS Srichakra

Buy

183

252

140

1,591

1,739

6.1

6.6

24.5

41.9

7.5

4.4

0.8

0.7

10.9

17.2

0.3

0.3

United Spirits

Neutral

2,332

-

33,896

12,294

14,162

12.0

12.0

42.1

67.7

55.4

34.5

3.9

3.5

9.1

10.7

3.1

2.7

www.angelbroking.com

Market Outlook
June 14, 2013

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Č cr )

OPM(%)

EPS ( Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

( Č)

Price ( Č)

( Č cr )

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

365

439

741

600

638

20.1

19.4

35.7

36.6

10.2

10.0

1.8

1.6

19.4

17.1

1.0

0.9

Others
Vesuvius India*

Buy

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on June 13, 2013

www.angelbroking.com

Market Outlook
June 14, 2013

www.angelbroking.com

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