Market Outlook Market Outlook: Dealer's Diary

Market Outlook
May 30, 2012
Dealers Diary
The domestic markets are expected to open in red tracing negative opening in
most of the Asian bourses and the SGX Nifty, as reports say that China has ruled
out any broader stimulus to boost its economy and Spain rating has been
downgraded.
Domestic Indices
Globally, US markets closed notably higher on Tuesday after witnessing volatility in

the morning trade, which was on account of some mixed news out of Europe. Most
of the European markets also largely finished in positive territory on Tuesday.
Spanish markets, however remained under pressure due to concerns over the
country's banks. Expectations for further stimulus from China provided investors
with optimism, globally.
SMALL CAP
Meanwhile, Indian benchmark indices gave up most of their early gains on

Tuesday to close flattish, as a little bit of volatility in European markets on concerns
over the outlook for Spanish banks and the slide in rupee following three days of
gains prompted investors to pare their long positions.
Chg (%)
(Pts)
(Close)
BSE Sensex
0.1
Nifty
0.1
4.5
4,990
(0.1)
(8.3)
5,964
MID CAP
21.7 16,439
0.2
10.9
6,384
BSE HC
(0.3)
(20.0)
6,657
BSE PSU
0.5
33.5
6,832
BANKEX
0.1
15.1 11,178
AUTO
0.3
24.6
METAL
0.4
36.0 10,224
OIL & GAS
0.3
20.8
7,613
BSE IT
1.2
66.0
5,625
(Pts)
(Close)
Global Indices
Chg (%)
9,424
Dow Jones
1.0
NASDAQ
1.2
33.5
2,871
FTSE
0.7
34.8
5,391
The trend deciding level for the day is 16,464 / 4,997 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 16,519 16,599 / 5,013 5,035 levels. However, if NIFTY trades below
16,464 / 4,997 levels for the first half-an-hour of trade then it may correct up to
16,384 16,330 / 4,975 4,959 levels.
Nikkei
0.7
63.9
8,657
Hang Seng
1.4
Straits Times
0.5
14.6
2,802
Shanghai Com
1.2
28.3
2,390
Indices
S2
S1
PIVOT
R1
R2
Indian ADRs
Chg (%)
(Pts)
(Close)
SENSEX
16,330
16,384
16,464
16,519
16,599
INFY
2.3
1.0
$43.5
NIFTY
4,959
4,975
4,997
5,013
5,035
WIT
2.5
0.2
$8.9
IBN
2.9
0.9
$30.1
HDB
2.7
0.8
$29.4
Markets Today
News Analysis
IRB emerges L1 for road projects worth `2,400cr

4QFY2012 Result Reviews ONGC, Tata Motors, Sun Pharma, SAIL, IPCA
Labs, Aurobindo Pharma, NCC
4QFY2012 Result Previews GAIL, MM, DLF, Colgate, JP Associates, HDIL,
Anant Raj, Simplex Infra, GIPCL
Refer detailed news analysis on the following page
Advances / Declines
125.9 12,581
254.5 19,055
BSE
NSE
Advances
1,429
727
Declines
1,276
670
139
95
Unchanged
Net Inflows (May 28, 2012)

` cr
Purch
Sales
Net
MTD
YTD
FII
1,234
1,055
179
(1,161)
42,300
397
235
162
352
(5749)
MFs
FII Derivatives (May 29, 2012)

` cr
Purch
Sales
Net
Open Interest
Index Futures
3,229
3,012
216
14,346
Stock Futures
6,670
6,344
327
23,982
Gainers / Losers
Gainers
Company
Gujarat Mnrl
GVK Power
HDIL
Pantaloon Retl
Glaxosmithkl Cons
www.angelbroking.com
Losers
Price (`)
chg (%)
179
4.1
12
3.8
Company
Price (`)
chg (%)
Aurobindo Phar
111
(5.6)
Voltas
103
(3.6)
67
3.7
IVRCL Ltd
42
(3.1)
158
3.6
Sintex Inds
55
(3.0)
2,694
3.5
Piramal Health
435
(2.7)
Volumes (` cr)
BSE
1,749
NSE
8,510
Market Outlook
May 30, 2012
IRB emerges L1 for road projects worth `2,400cr

IRB has emerged as the lowest bidder for the four-laning project of
Goa/Karnataka Border to Kundapur section of NH-17 in Karnataka under NHDP
phase IV on design, build, finance, operate and transfer (Toll) basis. The estimated
cost of the project is `2,400cr. The concession period is 28 years and construction
period is 910 days. Further, IRB had sought `536cr as viability gap funding (VGF)
from NHAI. This project win would be after a year as IRB had won the
Ahmedabad-Vadodara project in April 2011. Further, this is in-line with the
companys guidance of `4,000cr-5,000cr of order inflow each year. We continue
to maintain our Buy recommendation on the stock with a target price of `166.
Result Reviews
ONGC (CMP: `256, TP: Under Review)
ONGCs 4QFY2012 results were above our expectations. The companys top line
increased 22.2% yoy at `18,819cr. EBITDA margin expanded 932bp yoy to 42.6%
and EBITDA increased by 56.4% yoy to `8,019cr. The companys depreciation and
amortization expenses decreased 41.5% yoy to `1,349cr. Net profit increased
substantially by 102.2% yoy to `5,644cr much ahead of our estimate of `2,652cr.
We recommend a Buy on the Stock with our target price under review.
Y/E
March
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
(x)
EV/Sales
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
FY2013E
151,858
39.3
29,079
34.0
20.1
7.1
1.3
2.8
1.0
(x)
FY2014E
150,563
39.5
30,798
36.0
18.7
6.8
1.2
2.5
0.9
Tata Motors (CMP: `276 / TP: `312 / Upside: 13%)

Consolidated performance a mixed bag: For 4QFY2012, Tata Motors (TTMT)
reported impressive 44.3% yoy (12.5% qoq) growth in its top line to `50,908cr, led
by 51.5% yoy (10.6% qoq) growth in JLR sales, which were driven by a 48.2% yoy
(13.6% qoq) jump in volumes and 4.4% yoy (flat qoq) improvement in net average
realization. While Land Rover volumes jumped by 51% yoy, driven mainly by
incremental volumes from Evoque (29,171 units during the quarter), Jaguar
volumes jumped by 30% yoy due to the strong performance of the recently
launched XF. The companys operating margin, however, declined by 184bp qoq
and stood at 13.2% primarily on account of increased other expenditure, which
increased substantially by 36.3% qoq. Raw-material expenses, on the other hand,
were stable during the quarter, which supported the margins. Led by tax credits of
`1,793.7cr related to carry forward income tax losses at JLR, reported net profit
jumped sharply to `6,234cr. Adjusted for tax credits, net profit came in better than
expectations, registering 80.5% yoy growth to `4,440cr.
Strong standalone performance: TTMT posted better-than-expected 14.4% yoy
(22.9% qoq) growth during the quarter on account of 18.5% yoy (23.3% qoq)
growth in volumes. Net average realization, however, declined by 3.6% yoy due to
higher contribution of light commercial vehicles during the quarter. Operating
Market Outlook
May 30, 2012
margin improved substantially by 268bp qoq to 9.1%, mainly led by operating

leverage benefits and a decline in raw-material expenses. Hence, net profit
increased substantially by 225.5% sequentially to `565cr.
At `276, the stock is trading at 6.3x FY2014E earnings. We maintain our
Accumulate rating on the stock with an SOTP target price of `312.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY13E
191,183
12.8
12,500
39.4
40.4
7.0
2.5
4.4
0.5
FY14E
217,703
12.8
13,849
43.6
34.2
6.3
1.9
3.9
0.5
Sun Pharmaceuticals (CMP - `566, TP - `634, Upside: 12%)

Sun Pharmaceuticals reported sales and the net profit came in much ahead of
expectations. For the quarter, the company posted sales of `2330cr, a growth of
59.4% yoy. The growth in the domestic and exports, both of grew robustly. The
domestic formulations reported growth of 49%, while the US and ROW
formulation sales during the quarter came in at 66% and 31% respectively. On the
operating front, the Gross and Operating margins came in at 78.4% and 41.1%
respectively. The OPMs were were just in line with expectations. Thus, while the
OPMs were in line , higher sales growth and higher other income and lower
interest expenses during the quarter aided the net profit growth of 85.3% yoy to
end the period at `820cr, in comparison to the `775cr estimated for the quarter.
We maintain our Accumulate with a target of `634.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
9,272
36.3
2,768
26.7
22.1
21.2
4.4
16.0
5.8
FY2014E
11,080
38.0
2,980
28.8
20.8
20.9
3.7
12.5
5.7
SAIL (CMP: `93, TP: Under Review)

SAILs 4QFY2012 net sales were above our estimates; however, adjusted PAT
came in below our estimates. SAILs 4QFY2012 net sales increased by 12.2% yoy
to `13,397cr (above our estimates of `12,183cr) mainly due to increase in sales
volumes in our view. Raw material costs and other expenditure increased 27.1%
and 38.6% yoy to `6,866 and `1979cr, respectively, while power and fuel costs
increased 26.2% yoy to `1,156cr. EBITDA dipped 20.5 % yoy to `1871cr and
EBITDA margin contracted by 574bp yoy to 14.0% (in line with our estimate of
14.0%). The company reported an exceptional item related to forex gain of `725cr
in 4QFY2012, compared to exceptional gain of `34cr in 4QFY2011. Hence,
reported net profit increased by 3.0% yoy to `1577cr. However, excluding
exceptional items, adjusted net profit declined substantially by 43.1% yoy to
`852cr (below our estimate of `1,263cr) in 4QFY2012. We maintain an
accumulate rating on the stock keeping our target price under review
Market Outlook
May 30, 2012
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
52,461
18.0
5,235
12.7
11.9
7.2
0.8
6.1
1.1
FY2014E
62,935
18.8
5,706
13.8
11.8
6.6
0.7
5.1
1.0
IPCA Labs (CMP - `323, TP - `443, Upside: 37%)

IPCA Labs reported sales and the net profit came in below expectations. For the
quarter, the company posted sales of `553cr, a growth of 16.7% yoy. On the
operating front, the Gross and Operating margins came in at 60.4% and 18.7%
respectively. The OPMs were below expectations of 20.7%. This aided the net
profit to come at `76.6cr, in comparison to the `64.9cr estimated for the quarter.
We maintain our buy with a target of `443.
Y/E
March
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
2,907
21.5
412
32.7
27.7
9.9
2.5
7.2
1.5
FY2014E
3,541
21.5
510
40.6
27.8
8.0
2.0
5.8
1.2
Aurobindo Pharma (CMP - `111, TP - `175, Upside: 58%)

Aurobindo Pharmaceuticals reported sales and the net profit came in above
expectations. For the quarter, the company posted sales of `1170cr, a growth of
2.5% yoy. On the operating front, the Gross and Operating margins came in at
45.2% and 10.3% respectively. The OPMs were below expectations of 13.9%. This
aided the net profit to come at `38.1cr, in comparison to the `47cr estimated for
the quarter. We maintain our buy with a target of `175.
Y/E
March
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
5,243
14.6
480
16.5
15.1
6.7
1.0
6.5
1.0
FY2014E
5,767
14.6
507
17.4
14.0
6.3
0.8
5.7
0.8
NCC (CMP: `32, TP: Under review)

For 4QFY2012, NCC posted better-than expected numbers on the revenue and
earnings front however the company disappointed on EBITDAM level. On the top
line front, NCC reported jump of 21.4% yoy to `1,755cr, which was higher than
our expectation of `1,429cr. On the EBITDAM front, the companys margin were
disappointing at 5.8%, a dip of 320bp on yoy basis and lower than our estimate of
7.4%. Interest cost came in at `98cr a yoy jump of 19.9% but a decline of 8.1% on
sequential basis. On the bottom line level, NCC reported a yoy decline of 69.7%
to `11cr, almost in line with our estimate of `10cr despite posting higher revenue
owing to lower EBITDAM and higher interest cost. The current outstanding order
Market Outlook
May 30, 2012
book of NCC stands at `20,196cr, with order inflow of `10,116cr for FY2012. We
maintain Buy view on the stock however the target price is under review.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
5,790
9.2
89
3.5
3.7
9.2
0.3
8.1
0.7
FY2014E
7,022
9.5
138
5.4
5.6
5.9
0.3
7.8
0.7
Market Outlook
May 30, 2012
Result Previews
GAIL(CMP: `330 / TP: `392 / Upside: 19%)
GAIL is expected to announce its 4QFY2012 results. We expect the companys
top line to grow by 20.3% yoy to `10,697cr. However, the companys
operating margin is expected to contract by 260bp yoy to 11.7%. On the
bottom-line front, we expect GAIL to report growth of 1.9% yoy to `798cr. We
continue to maintain our Buy rating on GAIL with a target price of `392.
Y/E
March
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
(x)
(x)
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
FY2013E
37,456
10.7
2,756
44.9
18.9
14.6
2.6
7.8
0.8
FY2014E
42,332
11.0
3,174
51.7
19.1
12.7
2.3
6.3
0.6
Mahindra and Mahindra (CMP: `656 / TP: `793 / Upside: 21%)

Mahindra and Mahindra is slated to announce its 4QFY2012 results. We
expect the companys top line to grow by strong ~20% yoy to `8,046cr,
backed by ~12% yoy growth in total volumes and ~7% yoy growth in net
average realization. The companys EBITDA margin is expected to witness a
decline of 132bp yoy to 11.4% on account of increased purchases from its
manufacturing subsidiary, MVML, and lower share of tractors in the total
volume mix. As a result, the bottom line is expected to remain flat on a yoy
basis to `610cr. We continue to maintain our Buy recommendation on the
stock with a target price of `793.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
37,456
10.7
2,756
44.9
18.9
14.6
2.6
7.8
0.8
FY2014E
42,332
11.0
3,174
51.7
19.1
12.7
2.3
6.3
0.6
DLF (CMP: `188, TP: -, Upside: -)

DLF is expected to announce its 4QFY2012 results. We expect the companys top
line to decline by 11.2% yoy to `2,382cr. However, the companys operating
margin is expected to expand by 1,441bp yoy to 39.2%. On the bottom-line front,
we expect DLF to report growth of 29.4% yoy to `446cr. We continue to maintain
our Neutral recommendation on DLF.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
9,878
44.7
1,631
9.6
6.4
19.6
1.2
13.1
5.8
FY2014E
12,033
46.1
2,277
13.4
8.7
14.0
1.2
10.4
4.8
Market Outlook
May 30, 2012
Colgate (CMP: `1,216, TP: -, Upside: -)

Colgate is expected to announce its 4QFY2012results. For the quarter, we
expect the company to post 16.4% yoy growth in its top line to `677cr, aided
by volume and realization growth. Net profit for the quarter is expected to
grow by 15.0% yoy to `131cr, aided by margin expansion of 348bp yoy to
25.0%. We maintain our Neutral view on the stock.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
3,007
21.1
513
37.7
129.4
32.3
38.4
27.8
5.4
FY2014E
3,417
22.1
579
42.5
120.1
28.6
31.0
23.4
4.7
JP Associates (CMP: `62, TP: `98, Upside: 58%)

We expect Jaiprakash Associates (JAL) to post marginal top-line growth of 2.0%
yoy to `4,063cr for the quarter on the back of higher revenue contribution from
the cement segment due to capacity addition. We expect the company to post
blended EBITDA margin of 22.9%, an improvement of 150bp yoy for the quarter.
The bottom line is expected to be at `230.6cr, registering a yoy decline of 23.6%
for the quarter. This is mainly on account of a 16.3% yoy expected jump in interest
cost to `470.9cr. We recommend Buy on the stock with an SOTP target price of
`98.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
16,017
24.4
893
4.2
8.8
14.8
1.2
8.7
2.1
FY2014E
18,359
23.5
1,067
5.0
9.7
12.3
1.2
8.0
1.9
HDIL (CMP: `67, TP: `115, Upside: 72%)

HDIL is expected to announce its 4QFY2012 results. We expect the companys top
line to increase by 14.8% yoy to `601cr. Operating margin is expected to expand
by 1,105bp yoy to 59.9%. On the bottom-line front, we expect HDIL to report flat
growth on a yoy basis to `197cr. We continue to maintain our Buy
recommendation on HDIL with a target price of `115.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
2,441
53.0
889
21.4
8.4
3.1
0.3
5.7
3.0
FY2014E
3,344
46.7
1,053
25.4
9.1
2.6
0.2
4.9
2.3
Market Outlook
May 30, 2012
Anant Raj (CMP: `47, TP: `78, Upside: 66%)

Anant Raj is expected to announce its 4QFY2012 results. We expect the companys
top line to come in at `177cr. However, operating margin is expected to contract
by 2,704bp yoy to 44.7%. The companys bottom line is expected to come in at
`55cr. We continue to maintain our Buy recommendation on Anant Raj with a
target price of `78.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
EV/Sales
(x)
FY2013E
657
52.0
248
8.4
6.3
5.6
0.3
7.2
3.8
FY2014E
875
56.1
375
12.7
8.9
3.7
0.3
5.0
2.8
Simplex Infra (CMP: `212, TP: `316, Upside: 49%)

Simplex Infra is expected to continue its healthy performance on a sequential
basis, as we project 27.1% yoy top-line growth to `1,738cr for 4QFY2012. We
expect the companys EBITDA margin to fall by 100bp to 9.0%. The bottom line is
expected to be under pressure due to increased interest cost (expected jump of
62.2% yoy), resulting in a yoy decline of 15.1% to `31.4cr for the quarter. We
continue to maintain our Buy view on the stock with a target price of `316.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
6,732
9.3
135
27.2
11.0
7.8
0.8
5.0
0.8
FY2014E
7,902
9.6
174
35.1
12.6
6.0
0.7
4.6
0.7
GIPCL (CMP: `62, TP: `98, Upside: 58%)

GIPCL is expected to announce its 4QFY2012 results. We expect GIPCL to register
flat top-line performance during the quarter. The companys OPM is expected to
decline by 1,201bp yoy to 27.4% on a high base on account of lower plant
availability and lesser generation-linked incentives. The first unit of SLPPI plant
(125MW) was not operational during 4QFY2012 due to damaged rotor. The
bottom line is expected to decline by 71.9% yoy to `23cr due to poor operational
performance and higher base due to the tax write-back in 4QFY2011.
We maintain our Buy view on the stock with a target price of `98.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
1,557
28.7
157
10.4
10.5
6.0
0.6
3.7
1.1
FY2014E
1,573
27.5
154
10.2
9.6
6.1
0.6
3.3
0.9
Market Outlook
May 30, 2012
Quarterly Bloomberg Brokers Consensus Estimate

Colgate - (30/05/2012)
Particulars (` cr)
4Q FY12E
4Q FY11
y-o-y (%)
3Q FY12
q-o-q (%)
Net sales
696
582
20
670
EBITDA
155
144
149
EBITDA margin (%)
22.3
24.7
Net profit
125
114
10
116
22.2
DLF Ltd - Consolidated (30/05/2012)

Particulars (` cr)
4Q FY12E
4Q FY11
y-o-y (%)
3Q FY12
q-o-q (%)
Net sales
2,338
2,683
(13)
2,034
15
EBITDA
1,013
666
52
823
23
EBITDA margin (%)
43.3
24.8
Net profit
275
313
(12)
247
11
4Q FY12E
4Q FY11
y-o-y (%)
3Q FY12
q-o-q (%)
10,504
8,894
18
11,260
(7)
1,389
1,288
1,795
(23)
EBITDA margin (%)
13.2
14.5
Net profit
832
783
1,091
(24)
4Q FY12E
4Q FY11
y-o-y (%)
3Q FY12
q-o-q (%)
Net sales
503
524
(4)
90
459
EBITDA
223
256
(13)
51
337
EBITDA margin (%)
44.3
48.9
Net profit
155
197
(21)
24
546
4Q FY12E
4Q FY11
y-o-y (%)
3Q FY12
q-o-q (%)
40.5
Gail Ltd - (30/05/2012)

Particulars (` cr)
Net sales
EBITDA
15.9
HDIL - Consolidated (30/05/2012)

Particulars (` cr)
56.7
Jaiprakash Associates - (30/05/2012)

Particulars (` cr)
Net sales
4,113
3,905
3,258
26
EBITDA
918
851
816
13
EBITDA margin (%)
22.3
21.8
Net profit
228
302
25.0
(25)
205
11
Mahindra & Mahindra Ltd - (30/05/2012)

Particulars (` cr)
4Q FY12E
4Q FY11
y-o-y (%)
3Q FY12
q-o-q (%)
8,163
6,682
22
8,327
(2)
EBITDA
932
862
1,021
(9)
EBITDA margin (%)
11.4
12.9
Net profit
614
607
Net sales
12.3
1
662
(7)
Market Outlook
May 30, 2012
Tata Chemical Ltd - Consolidated (30/05/2012)

Particulars (` cr)
4Q FY12E
4Q FY11
y-o-y (%)
3Q FY12
q-o-q (%)
3,369
2,623
28
3,794
(11)
EBITDA
549
486
13
556
(1)
EBITDA margin (%)
16.3
18.5
Net profit
204
198
Net sales
14.7
3
254
Economic and Political News
Foreign retail investors can buy US$1bn Indian corporate debt: Govt.
High Govt. borrowing may crowd out private sector: RBI
Air India board refers Boeing compensation issue to Govt.
Corporate News
Jindal Steel's US$2.1bn project gets Bolivian boot

JSPL buys 10% in Gujarat NREs Oz unit
Bharat Forge to sell loss-making US unit
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
(20)
Market Outlook
May 30, 2012
Result Calendar
Date
Company
June 01, 2012
GAIL, M&M, DLF, Jaiprakash Asso., Colgate, Tata Chemicals, HDIL, Page Industries, BGR Energy , PTC India, Anant
Raj, GIPCL, Simplex Infra, SpiceJet, Greenply
-
June 02, 2012
Mphasis
June 03, 2012
May 31, 2012
Source: Bloomberg, Angel Research
Global economic events release calendar

Date
Country
Event Description
Unit
Period
Bloomberg Data
Last Reported
Estimated
Value
May-12
(19.30)
(19.30)
US
Euro-Zone Consumer
Confidence
Initial Jobless claims
Thousands
19-May-12
370.00
370.00
Germany
Unemployment change (000's)
Thousands
Apr-12
19.00
(6.50)
US
GDP Qoq (Annualised)
% Change
Mar-12
2.20
1.90
India
Qtrly GDP YoY%
% Change
Dec-11
6.10
6.10
Germany
PMI Manufacturing
Value
May-12
45.00
45.00
US
Change in Nonfarm payrolls
Thousands
Apr-12
115.00
150.00
US
Unnemployment rate
Apr-12
8.10
8.10
China
PMI Manufacturing
Value
Apr-12
53.30
52.00
India
Imports YoY%
% Change
Mar-12
24.28
--
India
Exports YoY%
% Change
Mar-12
(5.71)
--
UK
PMI Manufacturing
Value
Apr-12
50.50
49.70
June 05, 2012
Germany
PMI Services
Value
May-12
52.20
--
June 06, 2012
Euro Zone
Euro-Zone GDP s.a. (QoQ)
Euro Zone
ECB announces interest rates
June 07, 2012
UK
BOE Announces rates
June 09, 2012
China
May 30, 2012
Euro Zone
May 31, 2012
June 01, 2012
% Change
Mar-12
--
--
May-12
1.00
--
% Ratio
May-12
0.50
0.50
Industrial Production (YoY)
% Change
Apr-12
9.30
--
China
Consumer Price Index (YoY)
% Change
Apr-12
3.40
--
June 10, 2012
China
Exports YoY%
% Change
Apr-12
4.90
--
June 12, 2012
India
Industrial Production YoY
% Change
Mar-12
(3.50)
--
UK
Industrial Production (YoY)
% Change
Mar-12
(2.60)
--
June 13, 2012
US
Producer Price Index (mom)
% Change
Apr-12
(0.20)
--
June 14, 2012
US
Consumer price index (mom)
% Change
Apr-12
--
--
Market Strategy
May 30, 2012
Macro watch
Exhibit 1: Quarterly GDP trends

(%)
(%)
9.8
10.0
Exhibit 2: IIP trends

12.0
9.4
9.0
8.0
7.5
8.3
7.8
7.6
7.4
8.0
7.7
6.9
5.8
6.0
3.7
4.0
6.1
5.9
6.2
5.3
6.0
7.0
4.1
3.4
2.7
2.5
1.1
2.0
(6.0)
Source: MOSPI, Angel Research
Exhibit 3: Monthly WPI inflation trends
Exhibit 4: Manufacturing and services PMI
(%)
Mfg. PMI
60.0
9.6
9.5
9.4
9.8
10.0
9.9
7.7
8.0
Mar-12
Feb-12
Jan-12
Services PMI
58.0
9.5
6.9
7.4
6.9
7.2
56.0
Source: MOSPI, Angel Research
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Exhibit 5: Exports and imports growth trends
Exhibit 6: Key policy rates
(%)
Exports yoy growth
Imports yoy growth
Repo rate
(%)
9.00
90
75
Reverse Repo rate
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
Apr-11
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
48.0
Sep-11
0.0
Aug-11
50.0
Jul-11
2.0
Jun-11
52.0
May-11
4.0
Jun-11
54.0
6.0
May-11
10.0
(3.5)
(5.0)
Source: CSO, Angel Research
12.0
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
3QFY12
2QFY12
1QFY12
4QFY11
3QFY11
2QFY11
1QFY11
4QFY10
3QFY10
2QFY10
1QFY10
4QFY09
3QFY09
(4.0)
May-11
(2.0)
5.0
Jun-11
Apr-11
6.0
9.5
10.0
8.5
CRR
8.00
8.00
60
7.00
45
30
6.00
4.75
5.00
Source: RBI, Angel Research
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
Jun-11
4.00
May-11
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
Jun-11
May-11
Apr-11
May-12
15
(15)
7.00
Market Outlook
May 30, 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
126
2,444
1,432
1,647
14.7
14.7
7.0
8.0
18.0
15.7
3.8
3.2
22.8
22.3
1.7
1.5
United Phosphorus
Buy
116
183
5,363
8,191
8,764
16.5
16.5
17.1
18.3
6.8
6.4
1.1
1.0
17.5
16.2
0.8
0.7
Amara Raja Batteries
Accumulate
305
345
2,607
2,691
3,032
15.6
15.5
29.4
32.8
10.4
9.3
2.5
2.0
26.5
23.6
0.9
0.8
Apollo Tyres
Accumulate
89
100
4,493
13,699
15,184
10.5
10.2
12.1
13.3
7.4
6.7
1.3
1.1
19.7
18.4
0.5
0.4
Ashok Leyland
Buy
25
33
6,665
14,798
16,687
9.6
9.6
2.4
3.0
10.3
8.4
2.1
1.8
14.8
16.5
0.5
0.4
Automotive Axle
Accumulate
456
514
689
1,211
1,387
12.1
11.7
50.3
57.1
9.1
8.0
2.3
1.9
27.8
25.7
0.6
0.5
Bajaj Auto
Buy
1,526
1,835
44,170
22,118
24,889
19.0
18.6
115.7
126.5
13.2
12.1
5.3
4.2
45.0
38.9
1.6
1.3
Bharat Forge
Buy
315
372
7,338
7,173
7,998
16.3
16.5
22.3
26.6
14.1
11.9
2.7
2.3
21.0
21.0
1.1
0.9
Bosch India
Accumulate
8,800
9,429
27,632
9,390
10,716
19.5
19.1
420.2
471.4
20.9
18.7
4.9
4.1
23.3
21.8
2.7
2.3
CEAT
Buy
98
164
336
5,067
5,631
8.0
7.6
39.4
41.0
2.5
2.4
0.4
0.4
18.8
16.5
0.3
0.3
Exide Industries
Buy
124
146
10,502
5,787
6,595
15.5
17.0
7.1
9.0
17.4
13.8
3.1
2.6
18.6
20.3
1.5
1.2
FAG Bearings
Neutral
1,581
2,627
1,531
1,748
18.8
18.5
118.0
132.8
13.4
11.9
2.9
2.4
24.0
21.9
1.5
1.2
Hero Motocorp
Buy
1,862
2,280
37,173
26,106
29,296
15.0
15.2
140.3
148.1
13.3
12.6
6.3
4.8
54.8
43.3
1.1
0.9
JK Tyre
Buy
78
113
321
8,058
9,025
5.4
5.5
24.8
32.2
3.2
2.4
0.3
0.3
11.4
13.2
0.3
0.3
Auto & Auto Ancillary
Mahindra and Mahindra Buy
656
793
40,292
34,740
39,263
10.7
11.0
44.9
51.7
14.6
12.7
2.6
2.3
18.9
19.1
0.8
0.7
Maruti
Buy
1,127
1,510
32,560
42,683
48,736
7.1
7.5
86.6
100.6
13.0
11.2
1.9
1.6
15.3
15.5
0.6
0.5
Motherson Sumi
Buy
163
216
6,332
11,167
12,516
9.5
10.0
11.3
14.4
14.4
11.4
3.1
2.6
23.3
24.7
0.7
0.6
Subros
Neutral
33
200
1,225
1,393
8.5
8.2
4.2
5.0
8.0
6.7
0.8
0.8
10.3
11.8
0.4
0.3
Tata Motors
Accumulate
276
312
73,530 191,183 210,301
12.8
12.8
39.4
43.6
7.0
6.3
2.5
1.9
40.4
34.3
0.5
0.4
TVS Motor
Buy
35
55
1,668
7,982
8,816
6.4
6.3
5.0
5.6
7.0
6.3
1.2
1.1
18.9
18.2
0.2
0.2
ABB*
Sell
749
498
15,873
8,760
10,023
6.4
6.4
18.2
20.7
41.1
36.1
5.5
4.9
14.4
14.6
1.8
1.6
BGR Energy
Reduce
302
274
2,181
4,170
5,396
11.5
10.4
27.2
30.4
11.1
10.0
1.8
1.6
17.3
17.4
1.1
1.0
BHEL
Neutral
218
53,309
46,344
46,916
18.3
18.6
23.5
24.1
9.3
9.0
1.8
1.6
21.3
18.9
1.0
1.0
Blue Star
Buy
162
221
1,452
3,250
3,551
5.9
5.9
12.4
15.8
13.0
10.2
2.7
2.2
21.2
23.8
0.5
0.4
Crompton Greaves
Buy
111
164
7,092
12,936
14,101
9.6
10.0
10.9
11.7
10.2
9.4
1.8
1.5
18.4
17.3
0.6
0.5
Jyoti Structures
Buy
39
67
324
2,622
2,801
10.6
11.0
10.9
13.4
3.6
2.9
0.4
0.4
12.7
13.9
0.3
0.3
KEC International
Buy
51
73
1,305
6,686
7,200
7.7
7.9
10.6
12.2
4.8
4.2
0.9
0.8
25.9
24.0
0.3
0.3
LMW
Buy
1,530
2,609
1,723
2,663
3,130
12.8
12.8
185.0
217.4
8.3
7.0
1.6
1.4
21.2
21.7
0.2
0.1
Thermax
Reduce
449
426
5,353
5,514
5,559
8.3
8.0
29.7
28.4
15.1
15.8
2.9
2.5
20.2
16.9
0.9
0.8
Capital Goods
Market Outlook
May 30, 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
1,139
21,382
11,018
12,663
19.9
21.2
70.7
81.2
16.1
14.0
2.8
2.5
18.0
19.0
1.7
1.4
Ambuja Cements
Neutral
146
22,466
10,035
11,504
23.5
23.8
10.1
10.6
14.4
13.9
2.8
2.6
18.5
19.4
1.9
1.5
India Cements
Neutral
75
2,312
4,423
4,906
18.2
18.8
9.9
12.7
7.6
6.0
0.6
0.6
8.6
10.5
0.8
0.7
J K Lakshmi Cements
Buy
62
79
760
1,938
2,246
19.1
20.1
14.6
16.1
4.2
3.9
0.6
0.5
13.4
13.6
0.5
0.9
Madras Cements
Neutral
139
3,299
3,444
3,786
25.5
24.9
14.6
17.1
9.5
8.1
1.4
1.2
15.6
16.0
1.6
1.3
Shree Cements
Neutral
2,509
8,741
5,465
6,249
24.3
23.7
151.5
222.1
16.6
11.3
4.0
3.4
21.6
25.8
1.3
1.0
UltraTech Cement
Neutral
1,377
37,729
20,116
22,655
21.3
22.5
82.1
97.5
16.8
14.1
2.6
2.3
16.8
17.4
1.8
1.7
200
302
1,053
2,014
2,294
22.4
22.4
28.4
30.8
7.1
6.5
0.9
0.8
14.1
13.3
2.3
2.6
Construction
Ashoka Buildcon
Buy
Consolidated Co
Neutral
14
261
2,526
2,792
5.7
6.6
1.8
2.8
7.7
5.0
0.4
0.4
5.5
8.1
0.3
0.3
Hind. Const.
Neutral
18
1,110
4,239
4,522
11.1
11.8
(1.8)
(0.8)
(10.2)
(23.4)
1.0
1.2
(9.5)
(4.7)
1.3
1.2
IRB Infra
Buy
114
166
3,787
3,821
4,582
42.3
40.2
15.0
16.9
7.6
6.7
1.2
1.0
16.1
15.8
2.6
2.4
ITNL
Buy
171
265
3,324
6,619
7,925
23.8
23.3
22.0
26.7
7.8
6.4
1.1
1.0
14.9
15.9
2.2
2.1
IVRCL Infra
Buy
42
79
1,121
5,758
6,860
9.2
9.2
4.7
6.0
9.0
7.0
0.5
0.5
6.0
7.3
0.7
0.6
Jaiprakash Asso.
Buy
62
104
13,173
16,017
18,359
24.4
23.5
4.2
5.0
14.8
12.4
1.3
1.2
8.8
9.7
2.1
1.9
Larsen & Toubro
Buy
1,201
1,553
73,552
59,559
69,089
12.1
11.5
70.8
76.5
17.0
15.7
2.5
2.2
16.1
15.3
1.4
1.2
Madhucon Proj
Buy
42
70
310
2,206
2,502
10.7
10.7
4.6
4.7
9.0
9.0
0.5
0.4
5.2
5.0
0.7
0.7
Nagarjuna Const.
Buy
32
76
821
5,790
7,022
9.2
9.5
3.5
5.4
9.2
6.0
0.3
0.3
3.7
5.6
0.8
0.7
Patel Engg.
Neutral
87
604
3,609
3,836
13.1
13.1
14.0
14.6
6.2
6.0
0.4
0.4
6.3
6.1
1.0
1.1
Punj Lloyd
Neutral
46
1,539
10,592
12,193
8.4
8.4
2.9
4.6
16.0
10.2
0.5
0.5
3.9
3.1
0.6
0.6
Sadbhav Engg.
Buy
123
199
1,844
2,989
3,315
10.6
10.6
10.2
11.3
12.1
10.9
1.9
1.6
17.6
16.3
0.8
0.8
Simplex Infra
Buy
213
316
1,054
6,732
7,902
9.3
9.6
27.2
35.1
7.8
6.1
0.8
0.7
11.0
12.6
0.5
0.4
Allahabad Bank
Accumulate
138
156
6,915
7,392
8,542
3.1
3.1
38.3
42.1
3.6
3.3
0.6
0.5
18.4
17.6
Andhra Bank
Neutral
108
6,029
5,151
5,843
3.2
3.1
22.4
25.7
4.8
4.2
0.7
0.7
15.8
16.0
Axis Bank
Buy
1,024
1,476
42,362
16,157
19,557
3.2
3.2
116.4
139.1
8.8
7.4
1.6
1.4
20.0
20.3
Bank of Baroda
Buy
694
925
27,173
15,993
18,918
2.6
2.6
127.3
149.9
5.5
4.6
0.9
0.8
17.8
18.2
Bank of India
Buy
331
411
18,995
13,558
15,551
2.5
2.4
61.6
70.8
5.4
4.7
0.9
0.8
16.8
16.9
Bank of Maharashtra
Accumulate
Canara Bank
Buy
Central Bank
Neutral
Financials
50
53
2,927
3,580
4,050
3.2
3.2
11.5
13.1
4.3
3.8
0.7
0.6
17.4
17.2
402
522
17,824
12,061
13,906
2.3
2.3
83.1
92.7
4.8
4.3
0.8
0.7
16.7
16.4
75
5,491
6,838
7,912
2.3
2.4
13.8
20.3
5.4
3.7
0.8
0.7
10.9
14.4
Market Outlook
May 30, 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
Buy
416
486
6,164
5,203
5,880
2.2
2.1
107.5
112.7
3.9
3.7
0.7
0.6
17.9
16.5
Dena Bank
Buy
89
111
3,103
3,149
3,522
2.8
2.8
23.3
26.1
3.8
3.4
0.6
0.5
17.7
17.0
Federal Bank
Neutral
421
7,195
2,743
3,131
3.4
3.3
49.7
57.4
8.5
7.3
1.1
1.0
14.1
14.6
HDFC
Neutral
661
97,644
7,393
8,844
3.5
3.4
31.7
37.9
20.9
17.4
4.2
3.7
34.7
31.9
HDFC Bank
Accumulate
505
567
118,489
21,831
27,477
4.3
4.3
28.3
35.5
17.8
14.2
3.4
2.9
20.8
22.1
ICICI Bank
Buy
839
1,174
96,425
22,209
26,512
2.8
2.8
67.9
81.1
12.4
10.3
1.5
1.4
14.7
16.0
IDBI Bank
Buy
Indian Bank
Accumulate
IOB
Buy
J & K Bank
89
117
11,359
8,004
9,589
1.9
2.0
19.9
23.9
4.5
3.7
0.6
0.5
13.8
14.9
173
197
7,435
6,312
7,119
3.4
3.3
41.1
43.7
4.2
4.0
0.7
0.6
18.2
16.9
81
96
6,488
7,354
8,283
2.5
2.4
16.3
21.7
5.0
3.8
0.6
0.5
11.5
13.9
Neutral
912
4,421
2,535
2,861
3.5
3.4
176.3
184.4
5.2
5.0
0.9
0.8
19.3
17.6
LIC Housing Finance
Buy
244
286
12,291
2,108
2,607
2.6
2.6
24.5
30.6
10.0
8.0
1.9
1.6
20.1
21.4
Oriental Bank
Buy
231
274
6,746
6,431
7,315
2.7
2.6
54.4
63.8
4.3
3.6
0.6
0.5
13.6
14.3
Punjab Natl.Bank
Buy
749
1,015
25,394
19,893
23,653
3.1
3.2
153.4
175.2
4.9
4.3
0.9
0.7
18.3
18.1
South Ind.Bank
Neutral
24
2,690
1,399
1,596
2.6
2.5
3.5
3.8
6.8
6.3
1.2
1.1
18.7
17.5
St Bk of India
Buy
2,120
2,486
142,282
68,925
80,565
3.7
3.7
236.6
282.7
9.0
7.5
1.5
1.3
18.6
19.3
Syndicate Bank
Buy
92
131
5,544
7,133
8,255
3.0
3.0
25.9
30.0
3.6
3.1
0.6
0.5
16.9
17.1
UCO Bank
Neutral
68
4,517
5,623
6,380
2.4
2.4
16.9
17.9
4.0
3.8
0.8
0.7
16.5
15.4
Union Bank
Buy
204
276
11,248
10,215
11,854
2.9
2.8
42.7
50.3
4.8
4.1
0.8
0.7
17.0
17.5
United Bank
Buy
60
78
2,162
3,551
4,128
2.7
2.8
18.8
22.6
3.2
2.7
0.5
0.4
15.5
16.5
Vijaya Bank
Neutral
54
2,693
2,668
3,001
2.2
2.2
10.6
12.2
5.1
4.5
0.7
0.6
13.3
13.8
Yes Bank
Buy
338
450
11,964
3,209
4,144
2.7
2.8
33.9
41.5
10.0
8.1
2.1
1.7
23.1
23.3
3,837
36,805
11,423
13,309
16.3
16.3
125.3
148.4
30.6
25.9
10.4
8.2
38.0
35.4
3.1
2.7
528
650
6,312
5,906
6,856
6.9
7.0
22.3
28.3
23.7
18.7
9.7
7.2
45.2
44.1
1.1
0.9
1,216
16,539
3,007
3,417
21.1
22.1
37.7
42.6
32.3
28.6
38.4
31.0
129.4
120.1
5.4
4.7
FMCG
Asian Paints
Neutral
Britannia
Buy
Colgate
Neutral
Dabur India
Neutral
105
18,257
5,878
6,799
16.8
17.0
4.2
4.9
25.3
21.3
9.2
7.5
39.3
42.0
3.1
2.7
GlaxoSmith Con*
Neutral
2,694
11,329
3,124
3,663
17.1
11.6
103.0
123.3
26.2
21.9
8.1
6.5
34.0
32.9
3.3
2.7
Godrej Consumer
Neutral
575
19,555
5,973
7,000
18.4
18.6
22.8
27.2
25.2
21.2
6.9
5.6
31.3
38.4
3.4
2.9
HUL
Neutral
417
90,113
25,350
29,309
14.3
14.4
14.1
16.4
29.5
25.4
22.1
17.3
82.7
76.2
3.4
2.9
ITC
Accumulate
231
252
180,762
29,638
34,159
35.4
35.8
9.3
10.9
24.7
21.2
8.0
6.5
35.3
33.8
5.8
5.0
Market Outlook
May 30, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
( )
Price ( )
( cr )
FY13E
OPM(%)
FY14E
FY13E
FY14E
EPS ( )
FY13E
PER(x)
P/BV(x)
FY14E
FY13E
FY14E
FY13E
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FMCG
Marico
Neutral
174
11,224
4,667
5,427
12.8
12.9
6.6
8.1
26.2
21.4
7.0
5.5
30.0
28.8
2.4
2.0
Nestle*
Neutral
4,540
43,770
8,731
10,539
21.0
21.4
119.3
147.9
38.1
30.7
23.3
15.9
73.0
61.6
5.0
4.1
Tata Global
Buy
110
136
6,802
7,011
7,712
9.7
10.0
6.0
7.1
18.5
15.4
1.7
1.6
8.9
10.2
0.9
0.8
HCL Tech
Accumulate
506
560
35,037
22,792
25,743
17.4
17.4
37.8
43.0
13.4
11.8
3.0
2.5
22.3
21.3
1.5
1.3
Hexaware
Neutral
125
3,707
1,821
2,105
19.0
18.6
9.8
10.7
12.8
11.7
2.9
2.6
23.7
22.5
1.8
1.5
Infosys
Buy
2,407
2,792
138,214
37,615
42,491
31.1
30.6
158.5
174.5
15.2
13.8
3.4
2.9
22.5
20.8
3.0
2.5
Infotech Enterprises
Accumulate
166
177
1,849
1,758
1,972
17.0
16.6
16.8
18.6
9.9
8.9
1.4
1.2
13.6
13.2
0.7
0.5
KPIT Cummins
Neutral
116
2,067
2,028
2,239
15.0
14.8
9.0
11.4
12.9
10.2
2.3
1.9
19.3
18.7
1.0
0.8
Mahindra Satyam
Accumulate
77
86
9,061
7,097
7,812
16.2
16.0
7.5
8.0
10.3
9.7
1.4
1.2
13.2
12.3
0.9
0.7
Mindtree
Neutral
619
2,512
2,172
2,450
16.1
15.5
53.9
58.5
11.5
10.6
2.2
1.8
18.9
17.0
1.0
0.8
Mphasis
Buy
376
433
7,902
5,904
6,320
18.3
17.9
38.7
41.2
9.7
9.1
1.5
1.3
14.9
13.7
0.9
0.7
NIIT
Buy
40
52
660
1,162
1,304
14.8
15.1
7.1
8.8
5.6
4.6
0.9
0.8
16.7
18.4
0.4
0.3
Persistent
Neutral
346
1,382
1,109
1,224
23.3
22.4
37.2
40.1
9.3
8.6
1.4
1.3
15.4
14.5
0.9
0.8
TCS
Neutral
1,241
242,852
57,189
66,329
29.3
28.7
63.2
70.9
19.7
17.5
6.0
4.9
30.5
27.7
4.0
3.4
Tech Mahindra
Accumulate
665
725
8,475
5,880
6,314
15.6
15.2
75.9
82.2
8.8
8.1
1.8
1.5
20.1
18.1
1.4
1.2
Wipro
Accumulate
409
430
100,665
41,918
46,879
19.4
19.9
25.1
28.7
16.3
14.3
3.0
2.6
18.6
18.3
2.1
1.7
D B Corp
Buy
195
269
3,575
1,652
1,863
25.7
26.3
13.5
16.1
14.5
12.1
3.2
2.7
24.1
24.4
2.1
1.8
HT Media
Buy
113
148
2,644
2,255
2,555
16.3
16.7
9.0
10.6
12.5
10.6
1.6
1.4
13.4
13.8
0.8
0.6
Jagran Prakashan
Buy
87
137
2,761
1,499
1,642
27.4
28.8
7.6
9.1
11.4
9.6
3.8
3.4
34.6
37.7
1.8
1.6
PVR
Neutral
161
418
625
732
17.4
16.9
12.4
15.8
13.0
10.2
2.1
2.2
8.5
9.9
0.8
0.7
Sun TV Network
Neutral
247
9,736
2,135
2,458
75.2
74.4
20.9
24.0
11.8
10.3
2.8
2.3
26.0
25.1
3.5
2.8
Bhushan Steel
Neutral
445
9,446
9,232
13,557
30.8
31.1
48.0
58.6
9.3
7.6
1.2
1.0
14.5
7.5
3.2
2.2
Coal India
Accumulate
322
351
203,261
65,654
71,756
26.8
27.3
24.0
26.3
13.4
12.2
3.7
3.0
30.4
27.0
2.1
1.8
Electrosteel Castings
Buy
19
27
650
1,984
2,074
10.6
12.0
2.7
3.3
7.0
5.7
0.3
0.1
5.2
6.2
0.4
0.4
Hind. Zinc
Buy
119
139
50,302
13,043
14,223
51.8
52.8
14.8
16.6
8.0
7.2
1.6
1.3
21.2
19.9
2.1
1.5
Hindalco
Neutral
115
21,922
84,652
88,766
9.6
10.5
17.0
18.9
6.7
6.1
0.6
0.6
9.7
9.8
0.5
0.5
JSW Steel
Accumulate
622
663
13,877
39,592
44,910
18.0
17.7
74.7
88.9
8.3
7.0
0.8
0.7
10.7
11.6
0.7
0.7
MOIL
Reduce
275
255
4,628
979
1,061
45.7
46.8
24.5
26.6
11.3
10.4
1.7
1.6
16.1
15.8
2.6
2.2
Monnet Ispat
Buy
415
593
2,669
3,115
3,748
22.1
25.1
59.1
66.8
7.0
6.2
1.0
0.9
15.6
15.3
1.6
1.2
IT
Media
Metals & Mining
Market Outlook
May 30, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
Sales ( cr )
FY13E
OPM(%)
FY14E
FY13E
FY14E
EPS ( )
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
58
51
14,987
8,276
8,578
12.7
16.4
2.5
3.5
22.9
16.6
1.3
1.2
5.6
7.5
1.4
1.4
167
185
66,330
11,726
12,890
77.8
78.4
18.6
20.6
9.0
8.1
2.1
1.8
26.1
23.8
3.5
3.0
SAIL
Sesa Goa
Accumulate
93
102
38,476
52,461
62,935
18.0
18.8
13.2
14.5
7.1
6.4
0.8
0.8
12.4
12.3
1.1
1.0
Accumulate
185
206
16,096
9,067
9,316
35.7
35.5
44.5
44.3
4.2
4.2
0.9
0.8
23.5
19.5
0.4
Sterlite Inds
0.1
Buy
97
123
32,682
45,805
49,029
21.2
23.5
16.5
19.1
5.9
5.1
0.7
0.6
11.5
12.0
0.3
Tata Steel
0.2
Buy
416
499
40,383 143,088 148,011
10.9
12.1
53.9
66.0
7.7
6.3
0.9
0.8
12.2
13.4
0.6
0.6
Cairn India
Accumulate
336
372
64,120
15,513
16,074
74.0
69.7
51.1
48.6
6.6
6.9
1.1
1.0
18.3
14.8
3.0
2.2
GAIL
Buy
330
392
41,809
50,472
55,503
15.3
15.6
35.4
37.0
9.3
8.9
1.6
1.4
18.7
17.0
0.5
0.4
ONGC
Buy
256
319
219,320 148,157 150,563
37.6
39.5
31.0
33.6
8.3
7.6
1.5
1.3
18.8
18.1
1.1
1.0
Reliance Industries
Buy
702
872
229,792 325,734 328,669
10.9
11.7
65.8
70.1
10.7
10.0
1.1
1.0
11.9
11.5
0.7
0.7
Oil & Gas
Pharmaceuticals
Alembic Pharma
Buy
50
91
939
1,624
1,855
14.2
15.6
6.6
9.1
7.6
5.5
1.8
1.4
27.5
29.2
0.8
0.7
Aurobindo Pharma
Buy
111
175
3,217
5,243
5,767
14.6
14.6
13.8
14.7
8.0
7.5
1.0
0.4
11.4
10.9
1.0
0.8
Aventis*
Neutral
2,064
4,753
1,482
1,682
15.5
15.5
95.0
104.0
21.7
19.8
3.9
3.0
18.6
17.0
3.0
2.6
Cadila Healthcare
Buy
732
953
14,994
6,196
7,443
18.5
19.5
43.3
50.8
16.9
14.4
4.4
3.5
25.4
24.8
2.4
1.9
Cipla
Buy
311
379
24,951
7,687
8,804
21.4
21.4
16.5
18.9
18.8
16.4
2.9
2.6
16.7
16.8
3.2
2.7
Dr Reddy's
Neutral
1,701
28,834
10,696
11,662
20.7
21.0
83.7
92.9
20.3
18.3
4.2
3.6
22.4
21.0
2.8
2.5
Dishman Pharma
Buy
54
92
433
1,280
1,536
17.8
17.8
9.2
11.3
5.8
4.8
0.4
0.4
7.7
8.5
1.0
0.8
GSK Pharma*
Neutral
1,992
16,871
2,651
2,993
31.7
31.2
76.0
82.4
26.2
24.2
7.5
6.6
30.8
29.0
5.4
4.7
Indoco Remedies
Buy
56
665
514
685
837
15.2
15.2
55.5
66.5
1.0
0.8
0.2
0.1
16.4
16.9
0.9
0.9
Ipca labs
Buy
323
443
4,060
2,907
3,541
21.5
21.5
32.4
40.6
10.0
8.0
2.5
2.0
27.8
27.7
1.5
1.2
Lupin
Buy
531
646
23,728
8,426
10,082
19.7
20.0
29.7
32.4
17.9
16.4
4.7
3.7
27.0
25.2
2.7
2.2
Orchid Chemicals
Buy
122
178
860
2,117
2,434
17.7
17.7
16.7
22.2
7.3
5.5
0.7
0.6
9.5
11.5
1.1
0.9
Ranbaxy*
Neutral
536
22,606
12,046
11,980
18.0
15.8
35.7
29.8
15.0
18.0
5.6
4.6
43.1
28.1
1.9
1.8
Sun Pharma
Accumulate
566
634
58,257
9,272
11,080
40.3
36.3
26.7
28.8
21.2
19.6
4.3
3.7
22.1
20.8
5.6
4.6
CESC
Buy
269
342
3,360
5,084
5,512
24.2
23.8
45.2
48.5
6.0
5.5
0.6
0.6
11.2
10.9
1.1
1.1
GIPCL
Buy
62
98
938
1,557
1,573
28.7
27.5
10.4
10.2
6.0
6.1
0.6
0.6
10.5
9.6
1.1
0.9
NTPC
Accumulate
145
158
119,724
74,766
86,549
23.1
23.4
12.4
14.1
11.7
10.3
1.5
1.3
13.0
13.5
2.3
2.1
47
78
1,378
657
875
52.0
56.1
8.4
12.7
5.6
3.7
0.3
0.3
6.3
8.9
3.4
2.5
188
31,947
9,878
12,033
44.7
46.1
9.6
13.4
19.6
14.0
1.2
1.2
6.4
8.7
5.7
4.7
Power
Real Estate
Anant Raj
Buy
DLF
Neutral
Market Outlook
May 30, 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
67
115
2,801
2,441
3,344
53.0
46.7
21.4
25.4
3.1
2.6
0.3
0.2
8.4
9.1
3.0
2.3
Real Estate
HDIL
Buy
Telecom
Bharti Airtel
Neutral
300
113,907
80,967
88,684
33.1
33.4
17.9
22.0
16.8
13.6
1.9
1.7
11.5
12.5
2.1
1.8
Idea Cellular
Neutral
78
25,780
22,558
25,326
26.4
27.5
3.2
4.7
24.2
16.4
1.8
1.6
7.5
10.0
1.6
1.4
Rcom
Neutral
66
13,612
21,899
23,740
32.7
32.7
4.2
6.7
15.6
9.9
0.3
0.3
2.1
3.2
2.0
1.7
197
245
1,963
3,670
4,384
8.5
8.5
18.3
22.3
10.7
8.8
2.4
2.0
23.9
24.3
0.5
0.5
zOthers
Bajaj Electrical
Buy
CRISIL
Neutral
1,058
7,420
982
1,136
34.3
34.3
34.3
40.0
30.8
26.5
13.9
11.2
50.9
46.9
7.1
6.0
Finolex Cables
Buy
37
61
565
2,334
2,687
8.8
9.3
7.6
10.2
4.8
3.6
0.6
0.5
13.7
16.1
0.2
0.1
Graphite India
Buy
91
124
1,778
2,158
2,406
18.1
18.9
12.4
14.0
7.3
6.5
1.0
0.9
14.0
14.3
1.0
0.8
Greenply
Buy
214
298
516
1,800
2,047
11.1
11.6
34.1
49.6
6.3
4.3
1.2
0.9
20.2
23.7
0.5
0.4
Page Industries
Neutral
3,177
3,543
935
1,168
19.6
19.6
99.7
122.2
31.9
26.0
18.5
14.8
64.2
63.1
3.9
3.1
Sintex
Buy
55
129
1,503
4,751
5,189
16.3
16.6
13.6
15.8
4.0
3.5
0.5
0.5
13.1
13.4
0.7
0.5
Siyaram Silk Mills
Buy
263
439
246
1,042
1,173
12.4
12.5
66.3
78.5
4.0
3.4
0.8
0.6
21.1
20.8
0.5
0.4
SpiceJet
Neutral
33
1,601
5,384
6,443
(1.0)
4.1
(3.4)
2.4
(9.7)
13.8
(13.4)
28.2
0.5
0.4
Taj GVK
Buy
60
108
377
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
Goodyear
Accumulate
334
372
771
1,571
1,753
7.2
8.6
29.8
42.4
11.2
7.9
2.1
1.8
20.2
24.3
0.3
0.2
HEG
Buy
208
242
832
1,746
1,946
16.5
17.7
22.5
32.9
9.2
6.3
0.9
0.9
10.4
14.2
1.1
1.1
Hitachi
Buy
123
160
283
857
968
6.9
8.4
10.2
16.0
12.2
7.7
1.5
1.3
12.9
17.8
0.4
0.4
Honeywell Automation
Neutral
2,756
2,436
1,542
1,739
9.4
10.0
116.1
140.8
23.7
19.6
3.4
2.9
15.5
15.9
Ineos ABS
Neutral
747
1,314
900
1,011
10.2
11.5
35.6
45.7
21.0
16.4
3.0
2.6
15.4
17.2
ITD Cementation
Neutral
225
259
1,535
1,842
11.1
11.1
27.3
38.3
8.3
5.9
0.6
0.6
7.9
10.2
0.6
0.6
MRF
Buy
11,058
13,106
4,690
12,390
14,400
10.4
11.3 1,334.6 1,638.2
8.3
6.8
1.6
1.3
16.5
17.4
0.6
0.5
Relaxo
Accumulate
449
478
539
1,019
1,208
11.0
10.8
44.9
53.1
10.0
8.5
2.4
1.9
27.2
25.0
0.7
0.6
Tata Sponge
Buy
283
420
436
757
875
19.0
19.1
63.5
72.9
4.5
3.9
0.7
0.6
16.1
16.1
0.2
TVS Srichakra
Buy
329
462
252
1,612
1,827
9.5
9.8
72.3
92.5
4.6
3.6
1.3
1.0
33.1
32.1
0.4
0.3
Vesuvius India
Neutral
Abbott India
Accumulate
Cera Sanitaryware Ltd

Jyothy Laboratories
Force Motors
373
758
621
711
15.3
15.5
27.3
32.4
13.7
11.5
2.2
1.9
17.2
17.6
1.0
0.9
1,455
1,628
3,092
1,661
1,918
9.7
12.0
60.7
90.4
24.0
16.1
4.9
4.0
22.0
27.3
1.6
1.4
Buy
250
288
316
385
444
17.2
17.4
28.9
32.0
8.7
7.8
1.8
1.5
23.4
21.1
1.0
0.9
Buy
219
268
1,762
1,315
1,568
8.6
11.1
6.4
10.9
34.3
20.1
2.9
2.7
8.4
13.9
1.6
1.4
Buy
459
680
599
2,346
2,753
6.7
7.0
50.9
61.9
9.0
7.4
0.5
0.5
5.5
6.3
0.2
0.2
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on May 29, 2012
Market Outlook
May 30, 2012

Market Outlook Market Outlook: Dealer's Diary

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Market Outlook Market Outlook: Dealer's Diary

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Market Outlook

May 30, 2012

Globally, US markets closed notably higher on Tuesday after witnessing volatility in

Meanwhile, Indian benchmark indices gave up most of their early gains on

OIL & GAS

IRB emerges L1 for road projects worth `2,400cr

Refer detailed news analysis on the following page

Net Inflows (May 28, 2012)

FII Derivatives (May 29, 2012)

IRB emerges L1 for road projects worth `2,400cr

Tata Motors (CMP: `276 / TP: `312 / Upside: 13%)

margin improved substantially by 268bp qoq to 9.1%, mainly led by operating

Sun Pharmaceuticals (CMP - `566, TP - `634, Upside: 12%)

SAIL (CMP: `93, TP: Under Review)

IPCA Labs (CMP - `323, TP - `443, Upside: 37%)

Aurobindo Pharma (CMP - `111, TP - `175, Upside: 58%)

NCC (CMP: `32, TP: Under review)

Mahindra and Mahindra (CMP: `656 / TP: `793 / Upside: 21%)

DLF (CMP: `188, TP: -, Upside: -)

Colgate (CMP: `1,216, TP: -, Upside: -)

JP Associates (CMP: `62, TP: `98, Upside: 58%)

HDIL (CMP: `67, TP: `115, Upside: 72%)

Anant Raj (CMP: `47, TP: `78, Upside: 66%)

Simplex Infra (CMP: `212, TP: `316, Upside: 49%)

GIPCL (CMP: `62, TP: `98, Upside: 58%)

Quarterly Bloomberg Brokers Consensus Estimate

EBITDA margin (%)

DLF Ltd - Consolidated (30/05/2012)

EBITDA margin (%)

EBITDA margin (%)

EBITDA margin (%)

Gail Ltd - (30/05/2012)

HDIL - Consolidated (30/05/2012)

Jaiprakash Associates - (30/05/2012)

EBITDA margin (%)

Mahindra & Mahindra Ltd - (30/05/2012)

EBITDA margin (%)

Tata Chemical Ltd - Consolidated (30/05/2012)

EBITDA margin (%)

Economic and Political News

Jindal Steel's US$2.1bn project gets Bolivian boot

June 01, 2012

June 02, 2012

June 03, 2012

May 31, 2012

Source: Bloomberg, Angel Research

Global economic events release calendar

Unemployment change (000's)

GDP Qoq (Annualised)

Qtrly GDP YoY%

Change in Nonfarm payrolls

June 05, 2012

June 06, 2012

Euro-Zone GDP s.a. (QoQ)

ECB announces interest rates

June 07, 2012

BOE Announces rates

June 09, 2012

May 30, 2012

May 31, 2012

June 01, 2012

Industrial Production (YoY)