INDIA 10 Oct 2011

Morning Wrap
Centrum’s Views – A glance inside
Q2FY12 Result Preview Education: Growth momentum intact: We expect the companies to register strong growth during Q2FY12 despite this being a lean quarter for them. We believe the growth in topline would be largely driven by multimedia solutions to private schools, vocational courses and IT training segments. We expect Educomp Solutions to register strong growth in sales in Q2 driven by the higher education segment. NIIT is expected to report a decline in margin on higher spending on Individual Learning Solutions and School Learning Solutions segments.
Daily Avg. Volumes (Rs bn) NSE BSE NSE (Deriv) Advance/Declines Advances Declines Unchanged Inflows/Outflows Rs bn FIIs MFs Forex/Money Markets 7-Oct Rs/US$ 49.2 Rs/EUR 65.9 Rs/GBP 76.5 10 yr G-Sec 8.578 Call Money 8.1 Commodities Brent ($/bbl) Al (Rs/kg) Zinc (Rs/Kg) Steel (Rs/ton) Bullion Gold Silver Sensex
21000 20000 19000 18000 17000 16000 15000 Oct-10 Dec-10 Jun-11 Aug-11 Mar-11 Apr-11 May-11 Nov-10 Feb-11 Sep-11 Oct-11 Jan-11 Jul-11

Valuation Summary: A snapshot of the valuations of the stocks under coverage.

7-Oct 109.2 20.7 1001.1

1M 109.6 25.6 1330.2

3M 110.9 26.2 1336.2

A 162 39 3

B1 1413 735 86

B2 225 209 36

Total 1403 1025 102

7-Oct (9.7) 1.0

1M (61.3) (6.9)

3M (113.0) 22.1

1D 49.3 65.1 76.2 8.569 7.5

1M 46.1 64.9 73.7 8.3 8.0

3M 44.9 64.3 71.2 8.3 8.1

7-Oct 105.9 107.0 90.7 32520.0

1D 0.0% 0.2% -0.1% 0.1%

1M -7.4% -3.6% -11.6% 8.0%

3M -9.1% -6.4% -15.9% -7.7%

7-Oct 26,196.0 51,958.0

1D 2.1% 8.0%

1M -5.5% -16.5%

3M 14.3% -8.3%

Source: Bloomberg

Indices 10/07/11 1 Day (%) 1 Mth (%) 3 Mth (%)

Sensex 16233 2.8 (3.8) (13.9)

NIFTY 4888 0.0 (3.4) (13.6)

BSE 500 6282 2.3 (4.6) (14.2)

CNX Midcap 6894 0.0 (7.0) (15.1)

Nasdaq 2479 (1.1) 0.5 (13.3)

DJIA 11103 (0.2) 1.0 (12.3)

Hang Seng 17707 (1.1) (11.9) (22.9)

Nikkei 8606 1.0 (1.5) (15.1)

Source: Bloomberg, Centrum Research Estimates

Please refer to important disclosures/disclaimers inside
Centrum Equity Research is available on Bloomberg, Thomson Reuters and FactSet

4) (40.0) (59.5 25. Topline growth to continue: We expect the growth momentum to continue for companies given the opportunity in the space. Our belief is that NIIT re-rating is contingent upon FY12E financial performance i. PAT (Rsmn) YoY (%) (12.553 13.604 2.4 118.0) 32. In the case of Everonn Education.co.3) (5.3) (3.5 71.9 54.5 (32.806 6.6) (39.3) 1Yr (58.4) (33.4 QoQ (%) 93.5 35.6) (21.900 (14. NIIT is expected to report a decline in margin on higher spending on Individual Learning Solutions and School Learning Solutions segments. we recommend investors to tender shares in the open offer considering the acceptance ratio. We believe the growth in topline would be largely driven by multimedia solutions to private schools. NIIT becomes a long-term bet in our opinion. Educomp and Everonn are trying to cash in on the opportunity in these two areas.5) (19.157 2. Centrum Research * as on 07 October 2011 Abhishek Anand a.3 1. Thomson Reuters and FactSet .2 15. We expect Educomp Solutions to register strong growth in sales in Q2 driven by the higher education segment. multimedia solutions to private schools and formal education would be key drivers.9) Growth momentum intact We expect the companies to register strong growth during Q2FY12 despite this being a lean quarter for them. We believe that Educomp factors in all the concerns including FCCB payout.5) 38. Segments such as vocational courses.6 Q2FY11 Q2FY11E 56.8 (0.980 89 1.8 QoQ (%) 39.4 EBITDA (Rsmn) FY12E Q2FY11E YoY (%) 894 15. vocational courses and IT training segments.4) 6M (27.7 60.003 EBITDA Margin (%) Q2FY12E 40.3 122.135 846 1.5 12.in +91 22 4215 9853 Summary Estimates Y/E Mar (Rsmn) Career Point Educomp Everonn Education NIIT Net Sales (Rsmn) Q2FY12E YoY (%) 220 3.5 40.679 1.6 FY12E 326 6.473 588 529 (38. Centrum Research Estimates Please refer to important disclosures/disclaimers in Appendix A Centrum Equity Research is available on Bloomberg.7) 41.INDIA Education Education Q2FY12 Result Preview 10 October 2011 Price Performance* (%) 1M Career Point Educomp Everonn Education NIIT NIFTY (11.6) QoQ (%) 193. Hence.4 90 558 215 289 Adj.anand@centrum.014 Source: Company. Prefer Educomp and NIIT in the space: We prefer Educomp and NIIT in order of preference considering attractive valuations.6) (16. It announced its entry into skill development as National Skill Development Corporation bought a stake in a subsidiary of NIIT and has been given the mandate to train 7mn people by 2022. growth prospects and earnings surprises.8 37. New initiatives to continue: Companies in the education space will continue to focus on newer initiatives in the area of formal education and skill development as they foresee major opportunities in them.9 39.0 40.9 34. Source: Bloomberg.5 13.8) (43.1) (3.8 48.e growth with margin expansion.8 FY12E 295 3. Our calculation suggests that the stock would remain at Rs400 levels.6 52.9) 13. high capex in formal education and free cash flow generation.453 3.0 21.

8 1.8 4.8 4.4 FY13E 4.3 7.5 8.5% YoY revenue growth in Q2FY12 on the back of an increase in VITELS business.595 4. the company has shown continuous improvement in installation per school in the ischool segment.815 EPS (Rs) FY11 35. We expect net profit to decline by 3.2 35. We expect the operating margin to be 40. We expect net profit at Rs90mn on the back of top-line growth and higher other income.4 6.4 3.2 1.1 FY11 0.0 6.7 6.7 FY12E 3.4 1.5% in Q2FY11.4% YoY on the back of lower operating margin and higher depreciation expense. In the school learning solution.2 10. We expect net profit to grow by 38. Educomp Solutions (Rating – Buy.9 58. We expect net profit to grow by 1.4 13.1 6.2 7.2 EV/EBITDA (x) FY11 5.5% in the quarter on higher revenue and normalization of marketing expense.4 FY13E 2. Target Price – Rs341) We expect Career Point to post Rs220mn in revenue in Q2FY12 on the back of an increase in student enrollments. We expect the company to report an operating margin of 40% at the consolidated level driven by better sales mix. We assumed full tax rate as against effective tax rate of 19. driven by the segments – Individual Learning Solutions (ILS) and Corporate Learning Solutions (CLS). NIIT (Rating – Buy.1 16.5 7.586 8.5 5.4 2.Career Point Infosystems (Rating – Buy. Centrum Research Estimates 2 Education . Target Price – Rs430) We expect Educomp to register 33% YoY revenue growth in Q2FY12 on the back of strong growth in School Learning and Higher Learning segments.3% YoY to Rs215mn as subsidiaries’ losses are likely to come down.6 1. it has invested surplus funds in tax saving schemes which reduces effective tax rate. operating margin is likely to decline as the company continues to hire sales force which would drive business going forward.2 1.3 FY13E 45.5 16.7 5. While we expect standalone business to deliver strong operating profit margin.4 Source: Company.2 17. Target Price – NA) We expect Everonn to register 34. Summary valuations Y/E Mar (Rsmn) Educomp Everonn NIIT Career Point Rating Buy UR Buy Buy Target CMP (Rs) Price (Rs) 10-Oct-11 430 NA 66 341 205 446 46 266 Mkt Cap (Rsmn) 19. We expect the company to report an operating margin of 40% at the consolidated level driven by VITELS segment which enjoys high margin and lower revenue contribution from Edures.7 1.786 7.1 1.1 FY12E 32.6 15.3 8. Within VITELS segment.3 18.8 43.8 12. As the company has IPO proceeds in its books which are unutilized.6 P/E (x) FY12E 6. Everonn Education (Rating – Under Review. Operating margin is expected to contract by ~200bp mainly due to the introduction of new delivery platforms at centers and higher SG&A expenses which would help in higher sales growth and better margin going forward.8% YoY revenue growth. Target Price – Rs66) We expect NIIT to register 12.8 FY13E 0.9 1.3 14.2 P/B (x) FY12E 0.7 12.5% to Rs558mn.7 FY11 5.

1) Federal Bank Buy 450 (7.9 43.7 16.0 136.2 7.8 4.7 8.7 10.5 7.5 32.7 10.9 2.344 4.3 6.4) Bajaj Auto Buy 1.8 2.3 1.9) Punjab National Bank State Bank of India Hold 1.4 6.5 9.5 9.0 7.9 99.1 8.8) 1.2 16.642 5.016 945 0.050 2.5 1.6 13.4 5.4 9.0 110.1 6.7 9.7 17.1 3.3 16.335 71 111 60 1.150 275 2.1 2.113 (1.7 1.4 0.0 (2.8) (34.7 0.1 1.716 252 5.4) (46.5 1.0 1.2 67.6 15.7 18.4 5.5 0.542 9.8 24.8 19.6 19.9 9.7 6.1 20.6 9.7 (34.898 3.2 2.0 2.621 762 1.2 0.9) (15.0) (8.5 10.0 5.945 6.2 62.3 65.2 62.1 23.3 9.2 4.8 7.7) 0.4 8.4 113.3 7.5 9.6 12.2 2.7 10.3 18.096 4.107 21.1 1.1 1.9 114.3 1.4 28.9 6.2 0.4) (44.579 565 44.6 2.6 49.5 0.7 1.6 2.3) ICICI Bank Buy 196 (7.8 29.5 1.5 15.1 (25.Sanjeev Singh (+91 22 4215 9643) ACC Ambuja Cements Grasim Industries India Cements JK Cement Orient Paper and Industries Shree Cements Ultratech Cements Mkt Cap Weighted Aggregates Sell Sell Hold Buy Buy Buy Buy Sell 1.3 180.3 6.4) (21.3 5.4) Price Target 24 1.634 2.5 169.4 P/BV FY13E (x) 1.8 0.474 355 1.3 23.3 0.6 5.9) (21.3 4.6 8.5 15.5 4.6) Buy 43 (8.1 15.3 21.Valuation Summary Price as of 07 Oct 2011 Company Name Rating CP Price Performance 1M (%) Auto & Auto Ancillary .5 6.2 4.0) (40.1 15.7 11.1 44.4 0.9 2.3 226.1 12.2 39.2 6.9 20.3) 7.2 0.0) 1Y (%) (33.2 0.7 1.Ajay Shethiya (+91 22 4215 9855) Ashok Leyland Sell 25 (10.8 4.5) Mahindra & Mahindra Buy 796 0.6 73.9 2.Bhavesh Kanani (+91 22 4215 9636) Axis Bank Buy 1.1 16.1 8.1 3.6 TVS Motors Buy 58 (2.457 93.961 22.5 3M Avg Daily Volume (MM) FY12E EPS FY13E FY12E (x) 11.6 2.4 8.3 109.4 FY12E (%) 14.7) Mkt Cap Weighted Aggregates Banking & Financial Services .9) (5.1 FY12E (x) 1.752 (13.9) 5.7 15.0 1.1 3.8 2.9 18.2 8.1 22.1 0.250 6.2 8.5 2.7 1.4 51.6) (27.4 17.2 22.941 (10.6 16.4 5.2 34.2) (29.9 19.9 P/E FY13E (x) 10.4 11.5 19.4 0.7) 4.0 0.377 98 167 75 2.6 6.4 3.4 4.2 1.7 Maruti Suzuki Buy 1.7 10.503 (7.4 2.9 (1.253 4.6 12.7 213.5 16.4) (39.330 7.1 (2.2 22.6 6.0 11.329 8.2 100.1 FY13E (x) 7.9) (14.0) HDFC Bank Buy 824 (10.2 10.030 (10.8 5.3) (2.0 93.8 1.6) Bank of India Hold 313 (6.7 3.8 8.2 4.2 0.5) (26.7 1.1 EV / EBITDA FY12E (x) 8.5 0.7 17.5 0.9) Mkt Cap Weighted Aggregates Cement .884 9.3 13.1 6.5 1.2 15.1 17.1 8.7 14.7 3.5 14.7 4.4 14.8 0.1 2.5) Bank of Baroda Buy 741 (2.2 6.7 10.0 24.4 7.8 22.9 8.3 13.5 7.8) (34.327 1.3 0.9 62.5 6.4) Union Bank of India Hold 230 (5.7 10.7 10.0 11.4 13.2 13.482 222 63 MCAP (US$MM) 1.2 51.6) (13.0 17.6 129.5 896 122 2.9 12.9 1.3 9.1 4.0 2.692 8.300 950 325 55 425 525 1.5 14.5 38.3 17.3 2.0 3.4 22.8 48.0 16.4 1.8 2.2 53.1 18.1 0.0 4.7 53.848 7.6 1.7 21.0 12.6 ROE FY13E (%) 14.0 1.8 5.8 11.3 4.0 14.524 4.3 0.8 9.4 49.8 (0.8 1.2 3.0 2.0 22.0 24.5 7.5 6.0 57.8 16.4) (6.8 15.3 2.7 12.114 145 2.7 128.8) City Union Bank Buy 352 (8.100 250 125 1.3 12.7 11.5 21.356 446 158 235 1.5) Hero Motocorp Sell 1.3 204.3 15.6 19.8 42.5 10.9 15.1 2.7) Tata Motors Buy 159 0.9 1.6 Morning Wrap .1 40.0 0.1 6.9) (3.1 17.9 1.6 4.6 20.618 1.5 86.0 15.4 2.0 20.3 60.6 0.5) Hold 925 (3.764 1.1 5.7 4.2 16.404 19.9 7.0 78.4) Indian Bank Magma Fincorp Buy 69 (5.5 45.2 2.6) (2.7 3.8 7.223 21.2 0.2 229.

2 1.5 8.8 6.3 NIIT Buy 44 Mkt Cap Weighted Aggregates Ferrous-Steel & Mining .2 3.1 13.5) (33.5 8.189 42.7 8.5 0.2 18.9 986 (3.9) (33.Abhisar Jain (+91 22 4215 9928) Hindustan Zinc Ltd.8 0.8 1.7 4.1 6.3 1.2 5.0 5.2 8.7 7.7 1.0 0.1 1.7 17.8 1Y (%) Price Target MCAP (US$MM) 3M Avg Daily Volume (MM) FY12E EPS FY13E FY12E (x) P/E FY13E (x) FY12E (x) P/BV FY13E (x) EV / EBITDA FY12E (x) FY13E (x) FY12E (%) ROE FY13E (%) NCC Ltd Buy Mkt Cap Weighted Aggregates Education .8 30.3 8.8 22.7 8.9 2.624 8.6 8.1 7.0 0.2 7.8 6.3 33.6 10.0 Morning Wrap .4 112.8 5.0 8.728 2.3 14.6) (8.5 9.8 17.2 5.8 5.0 17.8) 1.4) (48.6 14.8 6.0 21.0 25.7 10.3 16.4 63.3) 10.5 5.1 28.Valuation Summary Price as of 07 Oct 2011 Company Name Rating CP Price Performance 1M (%) Construction .5 28.0 8.4 0.4 3.0 1.0 1.9 1.6) (57.3 10.0 31.563 19.4 49.5 8.7) (1.7 2.6 5.4 10.2 6.5) 341 430 0.9 21.8) (57.8 1.4) (50.3 27.0) 571 241 90 254 376 2.4 0.0 25.8) (11.0 12.151 2.696 3.0 6.1 34.1 7.7) (34.9 7.3 1.1 7.3) (12.611 92 498 144 66 147 881 2.4 15.2) 0.8) (21.8 9.Manish Kayal (+91 22 4215 9313) Ahluwalia Constructions CCCL Era Infra HCC Ltd IVRCL Ltd Buy Sell Hold Buy Buy 106 19 152 28 36 58 (7.7 2.8 1.3 3.5 30.2 4.021 8.5 1.5 4.8 3.6 1.1 30.3 31.3 10.9 1.3 7.3 25.0 1.0 1.8 7.5 1.7 6.7) (17.4 16.2) (77.6 2.8 5.6 18.0 13.1 14.5 41.9 5.1 0.3 8.8 4.5 15.0 10.0 6.1 2.7 43.1 0.9 6.8 3.5 6.5 5.4 8.7 11.8 883 0.2 1.5 17.2 9.6 16.0 2.2 1.7) (14.8) (62.6) 14.2 (6.8 9.9 1.9 9.1 18.3 6.2) (53.151 10.9 8.Abhisar Jain (+91 22 4215 9928) JSW Steel NMDC SAIL Sesa Goa Sell Buy Sell Buy 565 236 104 205 (21.8 3.6) (11.4 6.4 3.5 8.094 10.4 0.4 20.1 4.3 5.0 3.6 19.4 7.7 6.2 22.8 19.1 8.5 26.5 171 1.4 6.Ankit Kedia (+91 22 4215 9634) Colgate Palmolive Mkt Cap Weighted Aggregates Sell 118 (9.6 12.5 1.9 1.7 71.3 5.4 5.2 5.4 3.7 11.2 6.8 19.6 17.1 14.9 26.3 10.0 0.4 4.Abhishek Anand (+91 22 4215 9853) Career Point Infosystems Educomp Solutions Everonn Education Buy Buy Under Review 248 255 370 (13.6 18.7 8.8 15.6 4.4 Tata Steel Sell 420 Mkt Cap Weighted Aggregates Non Ferrous-Base Metals .3 31.7 22.5 9.8 4.1 1.0 32.7 1.3 29.6 38.0 13.1 1.6 1.8 11.0 22.2 5.5 8.1 0.4 8.5 4.8 32.0 1.3 0.0) 142 20 209 45 54 73 136 71 561 344 196 302 1.9 5.7 (12.0 2.1 0.0 0.8 5.4) (41.9 112.6 5. Buy Mkt Cap Weighted Aggregates FMCG .4 17.9 3.1 3.0 0.9 0.4 1.3) (77.2 6.1 8.6) (58.6 1.1 48.728 0.0) (59.

0 3.4 9.8 (2.2 6.6) (51.2) (0.1 4.9 5.8 (18.6 0.9 15.2 62.708 246 678 735 668 2.1 0.4 4.9 8.1 26.376 244 41.2 1.8 9.4 2.302 280 1.0) (11.6 4.7 11.0 1.2) (12.7 4.9 1.8 21.6) 5.5) 240 180 162 0.2 1.686 116.7 2.2 20.9 9.0 1.5 6.9 13.8 12.1 1.7 27.7 9.1 (12.4 1.7 136.0) 34 87 307 188 697 150 417 146 0.5 7.0 Morning Wrap .5 8.7 4.1) (51.2 3.8 7.6 5.5 22.2 20.5 8.3 18.2 18.0 9.362 40 1.7 18.3) 1.1 18.3) (3.6 3.0 1.6 22.Manish Kayal (+91 22 4215 9313) IL&FS Transport Network Ltd IRB Infrastructure Buy Hold 200 163 8.7) (30.6) 360 228 1.8 NM 19.0 32.6 12.5 23.9 7.3 15.3 17.3 2.0 2.0) (4.4 16.0 9.4 6.3 (17.6 10.5 2.0 1.3 3.6 9.7 7.0 11.4 20.0 4.3 (2.6 2.7 1.3) (8.2 5.1 10.6 10.2 58.8 11.7 11.2 1.4 0.3 4.0 10.4 12.1 11.2 (84.0 58.1 13.8 P/BV FY13E (x) 0.0 FY13E (x) 0.Ankit Kedia (+91 22 4215 9634) Balaji Telefilms Dish TV ENIL HT Media Info Edge Jagran Prakashan Sun TV Zee Entertainment Mkt Cap Weighted Aggregates Hold Hold Buy Buy Hold Buy Buy Hold 30 79 254 142 662 104 263 112 (4.3 28.5 0.5 16.1 3M Avg Daily Volume (MM) FY12E EPS FY13E FY12E (x) 1.7) (49.1 1.0 8.3) 44.8) (0.3) Mkt Cap Weighted Aggregates Infrastructure Developers .6 68.6) (43.8 10.6) (33.8 5.9 7.4 16.1 35.8 18.1 8.5 3.3 11.3 0.4 7.2 0.4 10.9 11.2 32.8 7.7 29.5 5.2 6.1 8.8 0.8) (24.1 8.8 19.5 22.431 306 117 3.2 14.150 190 125 0.6 3.2 7.108 2.5 52.9 26.7 16.7 53.3 1.8 9.4 10.2 35.2 42.0 72.0 14.509 340 322 300 1.7 15.4 6.0) 16.0 18.0 18.7 13.4 17.5 4.4 6.7 0.4 3.1 0.9 36.9 57.3 19.4 (4.7) (38.2 52.1 5.4) (9.3 9.8) 232 78 586 444 60 2.6 11.049 (14.7 17.7 8.9 39.6 16.8 2.2 11.7) (0.1 13.6 0.1) (26.1 2.1) (13.8 6.7 4.8 27.4 6.6 6.9 29.0 21.2 47.6 13.9 16.9) (3.926 427 5.9) (4.2 2.0 0.3 1.6 20.8 2.0 24.0 7.746 16.2 2.6 34.9 6.1 (6.0 26.4 1.Valuation Summary Price as of 07 Oct 2011 Company Name Rating CP Price Performance MCAP (US$MM) 16 19.8 4.6) 15.8 9.1 9.0 4.8 12.0 3.104 393 2.9 17.4 12.1 8.8 11.7 32.9 19.0 6.0 35.8) (36.180 789 1.7 19.4 7.1 (0.4 49.9 16.0 17.3 13.2 1.5 0.1 3.9 13.4 12.0 46.4 18.2 2.7 7.1 22.7 8.3) (7.0 0.0 FY12E (x) 0.6 13.228 8.4 4.7) 3.969 506 514 362 940 355 Wipro Sell 334 (1.6 12.0 13.3 EV / EBITDA FY12E (x) 0.Girish Pai (+91 22 4215 9699) / Abhishek Kumar (+91 22 4215 9644) Accentia Technologies Cognizant eClerx HCL Technologies Hexaware Infosys Technologies Mindtree Mphasis Persistent TCS Buy Hold Sell Sell Sell Hold Buy Buy Sell Sell 53 66 724 405 82 2.2 13.5 19.1 1.688 489 29.5 14.4 4.7 23.2 14.3 6.3 11.0 0.8 12.0 20.286 126 382 2.5 2.3 9.6 P/E FY13E (x) 0.0 10.1 1.3 (1.4 11.7 6.5 36.6 18.0 1M 1Y Price (%) (%) Target Information Technology .7 0.5 14.0 0.8 16.2 9.5 2.4) 100.7 2.3 7.0 3.0 8.7 13.5 15.3 1.0 5.1 21.0 8.4 4.5) 1.7 14.3 15.9 11.2 30.0 20.412 0.4) (2.6 5.6 156.8 11.8 0.2 1.4) (5.5 9.8 12.9 ROE FY13E (%) 18.3 11.1 17.0 0.0 9.8 12.2) (30.4 (44.0 9.1 Transport Corp of India Buy Mkt Cap Weighted Aggregates Media .1 Sadbhav Engineering Buy 129 Mkt Cap Weighted Aggregates Logistics .2 (27.Siddhartha Khemka (+91 22 4215 9857) Aegis Logistics Allcargo Global Logistics Container Corp of India Gateway Distriparks Buy Buy Hold Buy 185 144 919 139 79 (5.7 7.5 2.6) 11.8 32.6 1.1) 17.4 2.3 23.1 12.3 7.5 16.5 1.0 19.6 8.1 (7.4 6.3 2.4 5.3 2.1 2.3) 2.9 21.2 0.2 3.3) 13.0 31.0 FY12E (%) 13.0 13.2 15.2 19.0 25.4 11.0 23.7 1.

7) (6.9 Shipping Corporation of India Buy Mkt Cap Weighted Aggregates Sugar .9) (62.3 6.4 0.5 0.0 11.8 7.6 11.4 5.0 1.7 13.7 13.1 5.3 19.5 11.7 10.1) 39.3 10.2 1.0 29.2 0.1 (12.3 9.6 9.7 0.216 15.3 12.534 1.5 0.4) (1.0 13.6 2.5 2.1 12.7 3.3 27.9 11.2 23.5 13.0 6.4 1.039 786 4.0 12.8 10.9 4.5 0.2 0.2) (15.3 19.1 5.1 16.1 6.3 6.5 0.4 41.993 543.0) (25.2 14.4 0.9 12.0 7.8) (3.8 1.7) (50.3 0.1 0.3 (12.7 27.1) 507 104 5.7 7.4 1.9 4.922 10.7 6.9 9.3 8.5 1.4 3.8 150.492 46.1 34.1 2.3 15.4 44.1 25.8 1.6 (59.4 17.5 0.0 15.1 10.8 17.5) 4.0 1.6 0.1 21.4 4.6 7.5 (24.9 30.8 4.5 (23.6 0.7 18.1 0.5 8.0 0.5 7.5) 6.1 38.8 9.1 7.4) (66.4 0.9 7.4) Triveni Engineering Hold Mkt Cap Weighted Aggregates Telecom .7 36.4) (19.6) (18.4 12.7 (6.3 4.2 9.1 (8.3 6.059 265 457 36.6 1.1 (4.3 6.4 38.6 2.7 9.3) (60.2 17.3 14.1 5.9 1.8) 7.1 2.8 2.3 6.0 23.1 1Y (%) Price Target MCAP (US$MM) 3M Avg Daily Volume (MM) FY12E EPS FY13E FY12E (x) P/E FY13E (x) FY12E (x) P/BV FY13E (x) EV / EBITDA FY12E (x) FY13E (x) FY12E (%) ROE FY13E (%) Reliance Industries Buy 803 (5.2 16.6 22.4) (10.5) (27.3 18.4 85.0 2.5 40.3 18.6 1.5 0.0 2.7 45.9 2.1 17.1 21.9 1.582 362 183 1.8 0.3 1.8 41.9 1.4) (2.7 8.6 0.4 42.4) 36.6 1.8 18.569 27.327 264 155 (0.7 28.6 23.4) (17.104 1.4 15.5 6.2 5.467 0.5 0.5 (13.5 9.3 12.408 6.7 14.2 24.1 7.3 9.3 (4.1) 10.8 9.2 23.7 9.2 13.6) (28.9 66.8) Mkt Cap Weighted Aggregates Shipping/Oil Services .4) (22.5 15.0 1.7 3.4 15.3 8.6 7.8 33.4 8.Siddhartha Khemka (+91 22 4215 9857) Aban Offshore Great Eastern Shipping Sell Buy 346 239 69 (16.8 0.3) (10.4 37.3) 2.4) 17.9 67.8 1.0 5.5) 520 474 117 464 465 386 1.3 11.8) (16.5 0.2) 4.6 6.9 33.459 10.1 7.772 6.9) 0.9 2.9 0.1 2.5 24.5 101.6 0.6 6.2 5.5 5.7 3.069 3.8) 11.9) (30.0 5.8 (1.2) 4.9 7.6 18.2 3.6 11.2 9.4 5.5) 360 331 94 0.1 84.0 10.7 6.9 (1.2) 46 48 77 25 1.8 9.3 35.8 1.8) (8.8 9.4) (16.1 4.6 3.3 28.6 14.Rohit Nagraj (+91 22 4215 9854) BPCL Cairn India Ltd GAIL (India) Ltd Gujarat Gas Company Ltd Gujarat State Petronet Ltd HPCL Indraprastha Gas Ltd IOCL Oil India Ltd Oil & Natural Gas Corp Petronet Lng Buy Under Review Buy Buy Buy Buy Buy Buy Buy Buy Buy 669 270 411 423 102 368 427 319 1.5 8.9 4.Valuation Summary Price as of 07 Oct 2011 Company Name Rating CP Price Performance 1M (%) Oil & Gas .6 7.5 2.8 22.2) (83.0 10.8 21.6 0.608 1.Abhishek Anand (+91 22 4215 9853) Bharti Airtel Idea Cellular Reliance Communications Tulip Telecom Mkt Cap Weighted Aggregates Country Aggregate Buy Buy Not Rated Buy 355 90 73 155 (11.4 Morning Wrap .2 1.4 0.4 0.4 38.4 8.4 1.359 53.6 5.5 8.2 17.7 6.7 21.5 (20.2 23.8 39.6 8.6 25.4 17.4) (2.0 9.3 26.3 1.6 7.1 1.4 2.0 10.0) (2.5 11.2 4.4 1.9 10.5 10.1 4.3 7.3 18.6) 6.6 3.6 8.2) (9.9 0.7 20.7) (37.0 2.9 4.135 306 742 653 1.6 7.5 2.6 7.8 3.5 27.0 1.168 2.2 175.9 2.8 3.4 29.7 (2.7) (16.5 0.8 31.7) (15.8 11.479 156.4 32.7) (22.0 5.023 2.701 523 228 711 108 1.8 0.2 0.2 27.4 5.Sanjeev Singh (+91 22 4215 9643) Bajaj Hindusthan Balrampur Chini Shree Renuka Sugars Sell Sell Buy 38 46 52 21 (23.3 2.9 2.

25082011 19 Aug 2011 Ahluwalia .A game changer .Initiation .Q2CY11ResultUpdate .Positive surprise hides the underlying deceleration .26092011 22 Sep 2011 Hindustan Zinc Ltd.Buy .Operation twist fails to calm unnerving markets.Wheels on the road .Intensifying growth .Buy .Buy .23092011 21 Sep 2011 Metals .17082011 17 Aug 2011 Allcargo Logistics ."BE DEFENSIVE FOR LONGER" .12082011 12 Aug 2011 India Cements .Oil & Gas .August 2011 Banking Monthly .Change in HP's CEO doesn't impact our call . CFS leads the way .Management Meet Note ."Present tenser" as down-cycle looks imminent.plummetingpass-throughandintensifyinggrowth-pricestabilitytrade-offforRBI-15092011 13 Sep 2011 Economy .16082011 16 Aug 2011 NCC Ltd .03102011 03 Oct 2011 View from Mint Road .16092011 14 Sep 2011 Port Anchor .Management Meet Note .Disappointing refining performance .02092011 17 Aug 2011 Economy .Oil & Gas .041011 03 Oct 2011 Petro-Monitor .Monthly Report .Buy .20092011 16 Sep 2011 Petro-Monitor .14072011 13 July 2011 Economy .Upside risk despite moderating demand.Traffic down in seasonally weak month . 15% downside risk to stress case despite cheap valuation . but much below consensus.02092011 26 Aug 2011 Steel & Mining .Buy .Fortnightly .Buy .WPI Inflation .Q1FY12/ EstimateChange . chg -Disappointing Qtr.Higher realizations inflate profits .Q1FY12 Result update -Better than our expectation.27092011 23 Sep 2011 Steel .Q1FY12/ Rating Change .27082011 Covered Companies 26 Sep 2011 Mphasis . Maintain Buy .13082011 12 Aug 2011 HPCL .17082011 13 Aug 2011 Economy .Wheels on the road .Rating Change .10102011 04 Oct 2011 Automobile .Oil & Gas .Supply growth persists.Port volume update .Event Update .Update -Focus on improving assetutilisation .Silver provides the zing .26072011 14 July 2011 Economy .17082011 16 Aug 2011 Reliance Communications .Positives priced-in.Industrial production .Situation turns from bad to worse .Concerns remain over bleak Europe . RBI expected to be incrementally dovish .Update/ Rating & Earnings Change .Buy .16082011 16 Aug 2011 SBI .Industrial production .Q1FY12 Update/Estimate Change .Q1FY12Result .Q1FY12 GDP growth . but understates downside risk to growth .September 2011 .India Strategy .15092011 14 Sep 2011 Coal India Ltd .02092011 02 Sep 2011 Petro-Monitor .Faces challenges to high growth .550 Buy 73 Buy 494 Hold 464 Buy 98 Buy Morning Wrap .Q1 GDP growth gets a statistical boost .Strong core performance though asset quality .13072011 Sector Updates 10 Oct 2011 Education – Q2FY12 Preview .09082011 26 July 2011 Economy .Not Rated .Buy .RBI remains hawkish but is getting exposed to heightened efficacy test .Downside surprise confirms the slowdown .Growth momentum intact .16082011 13 Aug 2011 Tata Steel . .inflation trade-off calls for non-monetary measures .Delhi Meetings Update .Q1FY12 Result/ Estimate Change .Buy .Buoyancy in the 2W segment continues .Buy .Banking Monthly . Op.Lower Revenue on Slow Execution.Buy .Petchem .197 63 475 384 72 TP (Rs) Rating 514 Buy 171 Buy 228 Buy – Not Rated 66 Buy 514 Buy – Under Review 63 Buy 142 Buy 94 Buy 54 Buy 228 Buy 27 Buy – Not Rated 166 Hold 2.14092011 02 Sep 2011 Automobile . Buy.Q1FY12 ResultUpdate .Implications of Karnataka mining ban: .Maintain BUY .22092011 16 Sep 2011 Economy .13082011 09 Aug 2011 Economy .16082011 16 Aug 2011 FortisHealthcare .Recent Releases Date Research Economy & Strategy 22 Sep 2011 Economy .Margins expand.Concerns remain intact .WPI Inflation .Market beginning to factor in the ‘New Normal’ .Downside surprise confirms a wider slowdown .A festive push! .05092011 05 Sep 2011 Everonn Education . demand wanes . maintain Hold .October 2011 . Pain To Exist For Another 2Q.Fortnightly .28092011 27 Sep 2011 Banking .Q1FY12 / Estimate Change .RBI surprises with a over-hawkish 50bps hike.Event Update/ Rating Change .Sector update .7 78 155 2.Sector update .Q1FY12 Result/Est.Event Update .India Strategy .Under Review .Monetary policy .03102011 28 Sep 2011 Infrastructure Sector .Monetary policy .16092011 15 Sep 2011 Economy-WPIInflation-Higherinflation.Too many bumps in highway sector .Cautious .Hold .August 2011 .2012 .14092011 08 Sep 2011 NIIT .Buy .Call Option on Leo Apotheker's Strategy .Rating under review – 05092011 25 Aug 2011 TVS Motor Company .Not Rated -Q1FY12/ Estimate Change .21092011 20 Sep 2011 Oil & Gas .Buy . .17082011 17 Aug 2011 Lanco Infratech .Strong volume growth across business .22092011 15 Sep 2011 Allcargo Logistics .08092011 05 Sep 2011 Mphasis .Non-wireless business disappoints .02092011 02 Sep 2011 View from the Mint Road .September 2011 .Mid September 2011 .19082011 18 Aug 2011 Shipping Corp of India .18082011 17 Aug 2011 IVRCL Ltd .Fortnightly .Buy .Liner segment impacts performance .Update on Indonesian volumes.Industrial production .Hold .13092011 02 Sep 2011 Economy .12082011 Price (Rs) 334 133 150 376 47 357 352 53 125 83 40 165 16.Event update .Q1FY12 Resultupdate/Esti Chg .Buy . . Margins Surprised. Increasing probability of 2008 type event .

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