Market Outlook 

June 4, 2012

Dealer’s Diary
The domestic markets are expected to open in the red, tracing negative opening in
most of the Asian bourses and the SGX Nifty, after a U.S. payrolls report showing
addition of fewer jobs to the world’s largest economy than the most pessimistic
forecast, added to the concerns regarding slowing global economy.

Domestic Indices

Globally, US markets ended sharply in the red on Friday. Wall Street sell-off came
on account of the release of the above mentioned report from the Labor
department showing much weaker than expected job growth in the month of May.
The European markets also finished to the downside on Friday, dragged lower by
weak economic results across the globe. A weaker than expected manufacturing
report from China proved to be a precursor to several weaker than expected
manufacturing reports from countries across Europe. However, the disappointing
U.S. employment report appears to have had the largest impact on investors.
Indian shares fell sharply on Friday, weighed down by tepid global cues and rupee
weakness amid worries about slowing domestic growth. A number of investment
banks cut India's FY2013 GDP growth estimates after data yesterday showed that
India's economic growth had slowed to 5.3% in the 4QFY2012, the lowest in nine
years.

Markets Today
The trend deciding level for the day is 16,042 / 4,866 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 16,150 – 16,334 / 4,900 – 4,959 levels. However, if NIFTY trades below
16,042 / 4,866 levels for the first half-an-hour of trade then it may correct up to
15,857 – 15,749 / 4,807 – 4,773 levels

Chg (%)

(Pts)

(Close)

BSE Sensex

(1.6) (253.4) 15,965

Nifty

(1.7)

(82.7)

4,842

MID CAP

(1.5)

(86.3)

5,822

SMALL CAP

(1.2)

(76.6)

6,194

BSE HC

(1.3)

(88.4)

6,557

BSE PSU

(1.4)

(95.7)

6,664

BANKEX

(1.8) (199.9) 10,685

AUTO

(2.2) (192.7)

8,680

METAL

(1.7) (171.6)

9,935

OIL & GAS

(2.1) (160.2)

7,428

BSE IT

(2.0) (113.8)

5,552

Global Indices

Chg (%)

(Pts)

(Close)

Dow Jones

(2.2) (274.9) 12,119

NASDAQ

(2.8)

(79.9)

2,747

FTSE

(1.1)

(60.7)

5,260

Nikkei

(1.2) (102.5)

8,440

Hang Seng

(0.4)

(71.2) 18,558

Straits Times

(1.0)

(26.8)

2,746

0.1

1.2

2,373

Chg (%)

(Pts)

(Close)

0.2

0.1

$42.2

Shanghai Com

Indian ADRs

INFY
WIT

(2.6)

(0.2)

$8.4

Indices

S2

S1

PIVOT

R1

R2

IBN

(0.6)

(0.2)

$28.0

SENSEX

15,749

15,857

16,042

16,150

16,334

HDB

(1.4)

(0.4)

$27.6

NIFTY

4,773

4,807

4,866

4,900

4,959

News Analysis
„
„
„

Cement Dispatches – May 2012
CRISIL to acquire U.K.-based Coalition Development Co. for `250cr
MphasiS 2QFY2012 Result Review

Advances / Declines

BSE

NSE

Advances

826

356

1,869

1,078

115

70

Declines
Unchanged

Refer detailed news analysis on the following page

Volumes (` cr)

Net Inflows (May 31, 2012)
` cr

Purch

Sales

Net

MTD

YTD

BSE

1,874

FII

8,325

6,960

1,365

477

43,938

NSE

8,947

400

857

(457)

(366)

(6,467)

MFs

FII Derivatives (June 01, 2012)
` cr

Purch

Sales

Net

Open Interest

Index Futures

1,128

1,624

(496)

7,144

Stock Futures

1,338

1,215

123

19,755

Gainers / Losers
Gainers
Company
Indraprastha Gas
Neyveli Lignite
Gujarat State Pet

Losers

Price (`)

chg (%)

Price (`)

chg (%)

249

28.7

Company
Adani Enter

240

(8.2)

85

14.8

Pantaloon Retl

139

(7.8)

71

11.2

JSW ENERGY

42

(6.6)

Petronet LNG

139

9.0

IVRCL LTD

38

(6.4)

Amtek Auto

107

6.6

Asian Paints

3,777

(6.4)

www.angelbroking.com

Market Outlook
June 4, 2012

Cement Dispatches – May 2012
For May 2012, ACC reported moderate 3% yoy growth in its dispatches to 2.02mn
tonnes (mt). However, Ambuja Cements’ (Ambuja) dispatches grew strongly by
12.1% yoy to 1.94mt in May 2012, aided by strong demand scenario in the
company’s primary markets in the northern region. UltraTech Cements also posted
healthy 10.6% yoy growth in its dispatches to 3.6mt. We continue to remain
Neutral on ACC, Ambuja and UltraTech Cement as we believe they are fairly
priced at current levels.

CRISIL to acquire U.K.-based Coalition Development Co. for `250cr
CRISIL has entered into an agreement to acquire a 100% stake in U.K.-based
research and analytic firm, Coalition Development Co. (Coalition) and its
subsidiaries.
Coalition provides high-end analytics services mainly to leading global investment
banks. The company deploys unique proprietary analytics on market size
dynamics, revenue opportunities and human capital. Coalition reported revenue of
GBP9mn (`77cr) in FY2011. CRISIL’s revenue stood at `827cr at the end of
CY2011. CRISIL will be reporting Coalition’s revenue from the first year itself,
directly fueling nearly 10%+ growth in its top line.
CRISIL will take over Coalition for a sum of GBP29mn (`250cr), close to 3.2x its
FY2011 revenue. CRISIL has been growing its global research and analytics
segment rapidly. Coalition’s cutting-edge capabilities and in-depth understanding
of the workings of financial markets and strong relation with clients will further
help CRISIL’s global research and analytics segment to widen its service offerings
and add new clients.
Coalition has offices in New York, London, Singapore and Mumbai. CRISIL’s
global research and analytics segment today is one of the leading high-end
research providers globally and is one of the world’s largest equity and fixed
income research providers. This acquisition will help CRISIL to fuel growth of its
global research and analytics segment going ahead. We continue to maintain our
Neutral recommendation on the stock.

Result Review
MphasiS – 2QFY2012 (CMP: `371, TP: Under Review)
MphasiS announced its 2QFY2012 numbers. The company underperformed our
expectations on the revenue front; however, its numbers came in-line with our
expectations on the operating and net profit fronts. USD revenue came in at
US$261mn, down 1.7% qoq, due to softness in developed markets, which led to
lower discretionary spending and delays in decision making. In INR terms, revenue
came in at ```1,329cr, down 2.8% qoq. The company’s major concern of billing
rate again cropped up in this quarter as onsite billing rate of ITO business
declined to US$63/hr vs. US$67/hr, which management indicated was due to
Euro depreciation against USD and change in pyramid mix. The company again

www.angelbroking.com

Market Outlook
June 4, 2012

witnessed headcount reduction in its application as well as ITO business, which led
to a considerable increase in the respective utilization levels.
EBITDA margin of the company improved by 123bp qoq to 19.7%, aided by
savings on the employee expenses front. The company’s PAT for the quarter came
in at `189cr. The stock is currently 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

5,904

18.3

811

38.7

14.9

9.6

1.4

4.6

0.9

FY2014E

6,320

17.9

864

41.2

113.7

8.9

1.2

3.9

0.7

Economic and Political News
„
„
„

Manufacturing sector activity keeps pace in May: survey
PM sets up mechanism to fast track project implementation
Planning Commission may lower growth target to 8% for 12th-Plan period

Corporate News
„
„
„
„

NMDC to start coal production by 2014
Maruti to spend `4,000cr on new Gujarat car plant
Hyundai goes back to drawing board for India diesel plant
Jindal Stainless seeks to reschedule `9,000cr debt

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

www.angelbroking.com

Market Outlook
June 04, 2012

Global economic events release calendar
Date

Country

Event Description

Jun 5 2012 12:00AM

Germany

PMI Services

Jun 6 2012 12:00AM

Euro Zone

Euro-Zone GDP s.a. (QoQ)

Euro Zone

ECB announces interest rates

US

Initial Jobless claims

UK

BOE Announces rates

China
China

Jun 7 2012 12:00AM

Jun 9 2012 12:00AM

Unit

Period

Bloomberg Data
Last Reported

Estimated

Value

May-12

52.20

52.20

% Change

Mar-12

--

--

%

May-12

1.00

1.00

Thousands

26-May-12

383.00

380.00

% Ratio

May-12

0.50

0.50

Industrial Production (YoY)

% Change

Apr-12

9.30

9.80

Consumer Price Index (YoY)

% Change

Apr-12

3.40

3.20

Jun 10 2012 12:00AM China

Exports YoY%

% Change

Apr-12

4.90

7.00

Jun 12 2012 12:00AM India

Industrial Production YoY

% Change

Mar-12

(3.50)

--

Industrial Production (YoY)

% Change

Mar-12

(2.60)

--

Jun 13 2012 12:00AM US

Producer Price Index (mom)

% Change

Apr-12

(0.20)

(0.60)

Jun 14 2012 12:00AM US

Consumer price index (mom)

% Change

Apr-12

--

(0.20)

%

Apr-12

2.60

--

% Change

Apr-12

7.23

--

%

Apr-12

1.09

--

UK

Euro Zone

Jun 15 2012 12:00AM US

Euro-Zone CPI (YoY)
Monthly Wholesale Prices
YoY%
Industrial Production

Jun 18 2012 12:00AM India

RBI Repo rate

%

-

8.00

--

India

RBI Cash Reserve ratio

%

-

4.75

--

India

RBI Reverse Repo rate

%

-

7.00

--

CPI (YoY)

% Change

Apr-12

3.00

--

US

Housing Starts

Thousands

Apr-12

717.00

--

US

Building permits

Thousands

Apr-12

723.00

--

Jobless claims change

% Change

Apr-12

(13.70)

--

%

Apr-12

0.25

--

India

Jun 19 2012 12:00AM UK

Jun 20 2012 12:00AM UK
US
Source: Bloomberg, Angel Research

www.angelbroking.com

FOMC rate decision

Market Strategy
June 04, 2012

Macro watch

Exhibit 1: Quarterly GDP trends

(%)

4.0

4.1

3.4

2.7

2.5

(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

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

Feb-12

(4.0)

Jan-12

1.1
Dec-11

4QFY12

3QFY12

2QFY12

1QFY12

4QFY11

3QFY11

2QFY11

1QFY11

(2.0)

4QFY10

3.0

3QFY10

-

2QFY10

2.0

4.0

1QFY10

5.0

4QFY09

6.0
3.7

Nov-11

5.3

6.2

5.3

6.0

6.1

5.9

Oct-11

6.0

8.0

6.7

Sep-11

7.0

7.6

7.4

9.5

10.0

8.0

Aug-11

7.5

8.0

8.2

Jul-11

8.5

9.0

12.0

9.2

Jun-11

9.4

May-11

9.8

Apr-11

(%)

10.0

Exhibit 2: IIP trends

CRR

8.00

8.00

60
7.00

45

30

6.00
4.75

5.00

Source: Bloomberg, Angel Research

www.angelbroking.com

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

0

May-12

15

(15)

7.00

Market Outlook
June 04, 2012

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Č cr )

OPM(%)

EPS ( Č)

( Č)

Price ( Č)

( Č 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

123

-

2,390

1,432

1,647

14.7

14.7

7.0

8.0

17.6

15.4

3.7

3.2

22.8

22.3

1.7

1.4

United Phosphorus

Buy

108

183

4,976

8,191

8,764

16.5

16.5

17.1

18.3

6.3

5.9

1.0

0.9

17.5

16.2

0.8

0.7

Amara Raja Batteries

Buy

296

345

2,528

2,691

3,032

15.6

15.5

29.4

32.8

10.1

9.0

2.4

1.9

26.5

23.6

0.9

0.8

Apollo Tyres

Buy

81

100

4,093

13,699

15,184

10.5

10.2

12.1

13.3

6.7

6.1

1.2

1.0

19.7

18.4

0.5

0.4

Ashok Leyland

Buy

25

33

6,625

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

450

514

680

1,211

1,387

12.1

11.7

50.3

57.1

9.0

7.9

2.3

1.8

27.8

25.7

0.6

0.5

Bajaj Auto

Buy

1,500

1,835

43,391

22,118

24,889

19.0

18.6

115.7

126.5

13.0

11.9

5.2

4.1

45.0

38.9

1.6

1.3

Bharat Forge

Buy

302

372

7,029

7,173

7,998

16.3

16.5

22.3

26.6

13.5

11.4

2.6

2.2

21.0

21.0

1.1

0.9

Bosch India

Accumulate

8,708

9,429

27,341

9,390

10,716

19.5

19.1

420.2

471.4

20.7

18.5

4.8

4.0

23.3

21.8

2.6

2.2

CEAT

Buy

90

164

307

5,067

5,631

8.0

7.6

39.4

41.0

2.3

2.2

0.4

0.3

18.8

16.5

0.3

0.3

Exide Industries

Buy

117

146

9,907

5,787

6,595

15.5

17.0

7.1

9.0

16.4

13.0

2.9

2.5

18.6

20.3

1.4

1.1

FAG Bearings

Accumulate

1,500

1,594

2,493

1,531

1,748

18.8

18.5

118.0

132.8

12.7

11.3

2.8

2.3

24.0

21.9

1.4

1.1

Hero Motocorp

Buy

1,822

2,280

36,381

26,106

29,296

15.0

15.2

140.3

148.1

13.0

12.3

6.1

4.7

54.8

43.3

1.1

0.8

JK Tyre

Buy

76

113

311

8,058

9,025

5.4

5.5

24.8

32.2

3.1

2.4

0.3

0.3

11.4

13.2

0.3

0.3

Auto & Auto Ancillary

Mahindra and Mahindra Buy

645

793

39,592

34,740

39,263

10.7

11.0

44.9

51.7

14.4

12.5

2.6

2.2

18.9

19.1

0.8

0.7

Maruti

Buy

1,074

1,510

31,026

42,683

48,736

7.1

7.5

86.6

100.6

12.4

10.7

1.8

1.5

15.3

15.5

0.5

0.4

Motherson Sumi

Buy

160

216

6,200

11,167

12,516

9.5

10.0

11.3

14.4

14.1

11.1

3.1

2.5

23.3

24.7

0.6

0.6

Subros

Neutral

32

-

193

1,225

1,393

8.5

8.2

4.2

5.0

7.7

6.5

0.8

0.8

10.3

11.8

0.4

0.3

Tata Motors

Buy

225

312

59,832 191,183 210,301

12.8

12.8

39.4

43.6

5.7

5.1

2.0

1.6

40.4

34.3

0.4

0.4

TVS Motor

Buy

33

55

1,577

7,982

8,816

6.4

6.3

5.0

5.6

6.6

6.0

1.2

1.0

18.9

18.2

0.2

0.2

ABB*

Sell

713

498

15,105

8,760

10,023

6.4

6.4

18.2

20.7

39.1

34.4

5.3

4.7

14.4

14.6

1.7

1.5

BGR Energy

Neutral

276

-

1,994

4,170

5,396

11.5

10.4

27.2

30.4

10.2

9.1

1.7

1.5

17.3

17.4

1.1

1.0

BHEL

Neutral

207

-

50,592

46,344

46,916

18.3

18.6

23.5

24.1

8.8

8.6

1.7

1.5

21.3

18.9

1.0

0.9

Blue Star

Buy

164

221

1,470

3,250

3,551

5.9

5.9

12.4

15.8

13.2

10.4

2.7

2.3

21.2

23.8

0.5

0.4

Crompton Greaves

Buy

108

164

6,928

12,936

14,101

9.6

10.0

10.9

11.7

10.0

9.2

1.7

1.5

18.4

17.3

0.6

0.5

Jyoti Structures

Buy

38

67

315

2,622

2,801

10.6

11.0

10.9

13.4

3.5

2.9

0.4

0.4

12.7

13.9

0.3

0.3

KEC International

Buy

50

73

1,273

6,686

7,200

7.7

7.9

10.6

12.2

4.7

4.1

0.9

0.7

25.9

24.0

0.3

0.3

LMW

Buy

1,550

2,609

1,746

2,663

3,130

12.8

12.8

185.0

217.4

8.4

7.1

1.7

1.5

21.2

21.7

0.2

0.1

Thermax

Neutral

438

-

5,218

5,514

5,559

8.3

8.0

29.7

28.4

14.8

15.4

2.8

2.5

20.2

16.9

0.8

0.8

Capital Goods

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Market Outlook
June 04, 2012

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 )

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

Cement
ACC

Neutral

1,127

-

21,158

11,018

12,663

19.9

21.2

70.7

81.2

16.0

13.9

2.8

2.5

18.0

19.0

1.6

1.4

Ambuja Cements

Neutral

148

-

22,781

10,035

11,504

23.5

23.8

10.1

10.6

14.6

14.0

2.9

2.6

18.5

19.4

1.9

1.5

India Cements

Neutral

75

-

2,293

4,423

4,906

18.2

18.8

9.9

12.7

7.6

5.9

0.6

0.6

8.6

10.5

0.8

0.7

J K Lakshmi Cements

Buy

62

79

753

1,938

2,246

19.1

20.1

14.6

16.1

4.2

3.8

0.6

0.5

13.4

13.6

0.5

0.9

Madras Cements

Neutral

138

-

3,276

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

2,365

-

8,240

5,465

6,249

24.3

23.7

151.5

222.1

15.6

10.7

3.8

3.2

21.6

25.8

1.2

0.9

UltraTech Cement

Neutral

1,457

-

39,940

20,116

22,655

21.3

22.5

82.1

97.5

17.8

15.0

2.8

2.4

16.8

17.4

1.9

1.8

208

273

1,094

2,014

2,293

22.4

22.4

22.6

26.7

9.2

7.8

1.0

0.9

11.4

11.9

2.4

2.7

Construction
Ashoka Buildcon

Buy

Consolidated Co

Neutral

14

-

254

2,526

2,792

5.7

6.6

1.8

2.8

7.5

4.8

0.4

0.4

5.5

8.1

0.3

0.3

Hind. Const.

Neutral

17

-

1,043

4,239

4,522

11.1

11.8

(1.8)

(0.8)

(9.6)

(22.0)

1.0

1.1

(9.5)

(4.7)

1.3

1.2

IRB Infra

Buy

112

166

3,722

3,821

4,582

42.3

40.2

15.0

16.9

7.5

6.6

1.1

1.0

16.1

15.8

2.6

2.4

ITNL

Buy

175

265

3,407

6,619

7,925

23.8

23.3

22.0

26.7

8.0

6.6

1.1

1.0

14.9

15.9

2.2

2.1

IVRCL Infra

Buy

38

61

1,017

5,510

6,722

8.8

9.0

2.5

4.6

15.1

8.3

0.5

0.5

3.4

5.8

0.6

0.6

Jaiprakash Asso.

Buy

62

98

13,088

16,017

18,359

24.4

23.5

4.2

5.0

14.7

12.3

1.2

1.2

8.8

9.7

2.1

1.9

Larsen & Toubro

Buy

1,135

1,553

69,520

59,559

69,089

12.1

11.5

70.8

76.5

16.0

14.8

2.4

2.1

16.1

15.3

1.3

1.1

Madhucon Proj

Buy

39

70

287

2,206

2,502

10.7

10.7

4.6

4.7

8.4

8.3

0.4

0.4

5.2

5.0

0.7

0.7

Nagarjuna Const.

Buy

30

41

757

5,453

6,169

8.1

8.5

1.6

1.9

18.0

15.3

0.3

0.3

1.8

2.1

0.6

0.7

Patel Engg.

Neutral

84

-

588

3,609

3,836

13.1

13.1

14.0

14.6

6.0

5.8

0.4

0.4

6.3

6.1

1.0

1.1

Punj Lloyd

Neutral

44

-

1,458

10,592

12,193

8.4

8.4

2.9

4.6

15.1

9.7

0.5

0.4

3.9

3.1

0.6

0.6

Sadbhav Engg.

Buy

123

199

1,854

2,989

3,315

10.6

10.6

10.2

11.3

12.2

10.9

1.9

1.7

17.6

16.3

0.8

0.8

Simplex Infra

Buy

213

316

1,051

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

128

147

6,420

7,392

8,542

3.1

3.1

38.3

42.1

3.4

3.1

0.6

0.5

18.4

17.6

-

-

Andhra Bank

Neutral

106

-

5,923

5,151

5,843

3.2

3.1

22.4

25.7

4.7

4.1

0.7

0.6

15.8

16.0

-

-

Axis Bank

Buy

964

1,476

39,896

16,157

19,557

3.2

3.2

116.4

139.1

8.3

6.9

1.5

1.3

20.0

20.3

-

-

Bank of Baroda

Buy

660

925

25,856

15,993

18,918

2.6

2.6

127.3

149.9

5.2

4.4

0.9

0.8

17.8

18.2

-

-

Bank of India

Buy

332

389

19,044

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

www.angelbroking.com

50

53

2,945

3,580

4,050

3.2

3.2

11.5

13.1

4.3

3.8

0.7

0.6

17.4

17.2

-

-

395

493

17,516

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

-

5,495

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
June 04, 2012

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 )

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

411

468

6,086

5,203

5,880

2.2

2.1

107.5

112.7

3.8

3.7

0.7

0.6

17.9

16.5

-

-

88

107

3,084

3,149

3,522

2.8

2.8

23.3

26.1

3.8

3.4

0.6

0.5

17.7

17.0

-

-

Financials
Corporation Bank

Accumulate

Dena Bank

Buy

Federal Bank

Neutral

412

-

7,039

2,743

3,131

3.4

3.3

49.7

57.4

8.3

7.2

1.1

1.0

14.1

14.6

-

-

HDFC

Neutral

644

-

95,147

7,393

8,844

3.5

3.4

31.7

37.9

20.3

17.0

4.1

3.6

34.7

31.9

-

-

HDFC Bank

Buy

491

567

115,401

21,831

27,477

4.3

4.3

28.3

35.5

17.4

13.9

3.3

2.8

20.8

22.1

-

-

ICICI Bank

Buy

782

1,174

89,845

22,209

26,512

2.8

2.8

67.9

81.1

11.5

9.6

1.4

1.3

14.7

16.0

-

-

IDBI Bank

Buy

84

113

10,713

8,004

9,589

1.9

2.0

19.9

23.9

4.2

3.5

0.6

0.5

13.8

14.9

-

-

Indian Bank

Buy

162

190

6,967

6,312

7,119

3.4

3.3

41.1

43.7

3.9

3.7

0.7

0.6

18.2

16.9

-

-

IOB

Accumulate

80

92

6,400

7,354

8,283

2.5

2.4

16.3

21.7

4.9

3.7

0.6

0.5

11.5

13.9

-

-

J & K Bank

Neutral

911

-

4,416

2,535

2,861

3.5

3.4

176.3

184.4

5.2

4.9

0.9

0.8

19.3

17.6

-

-

LIC Housing Finance

Buy

234

286

11,786

2,108

2,607

2.6

2.6

24.5

30.6

9.6

7.6

1.8

1.5

20.1

21.4

-

-

Oriental Bank

Accumulate

228

262

6,657

6,431

7,315

2.7

2.6

54.4

63.8

4.2

3.6

0.6

0.5

13.6

14.3

-

-

Punjab Natl.Bank

Buy

727

1,041

24,667

19,893

23,653

3.1

3.2

153.4

175.2

4.7

4.2

0.9

0.7

18.3

18.1

-

-

South Ind.Bank

Neutral

24

-

2,667

1,440

1,635

2.7

2.5

3.8

4.1

6.3

5.8

1.2

1.1

19.9

18.6

-

-

St Bk of India

Buy

2,026

2,469

135,967

68,311

79,649

3.6

3.6

230.4

273.4

8.8

7.4

1.4

1.2

18.2

18.8

-

-

Syndicate Bank

Buy

89

126

5,360

7,133

8,255

3.0

3.0

25.9

30.0

3.4

3.0

0.5

0.5

16.9

17.1

-

-

UCO Bank

Neutral

68

-

4,527

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

193

261

10,628

10,215

11,854

2.9

2.8

42.7

50.3

4.5

3.8

0.8

0.6

17.0

17.5

-

-

United Bank

Buy

59

78

2,114

3,551

4,128

2.7

2.8

18.8

22.6

3.1

2.6

0.5

0.4

15.5

16.5

-

-

Vijaya Bank

Neutral

55

-

2,701

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

323

450

11,419

3,209

4,144

2.7

2.8

33.9

41.5

9.5

7.8

2.0

1.7

23.1

23.3

-

-

3,777

-

36,230

11,423

13,309

16.3

16.3

125.3

148.4

30.2

25.5

10.3

8.0

38.0

35.4

3.1

2.6

526

650

6,288

5,906

6,856

6.9

7.0

22.3

28.3

23.6

18.6

9.6

7.2

45.2

44.1

1.0

0.9

1,183

-

16,081

3,007

3,417

21.1

22.1

37.7

42.6

31.4

27.8

37.4

30.2

129.4

120.1

5.2

4.6

FMCG
Asian Paints

Neutral

Britannia

Buy

Colgate

Neutral

Dabur India

Neutral

103

-

17,970

5,878

6,799

16.8

17.0

4.2

4.9

24.9

21.0

9.0

7.4

39.3

42.0

3.1

2.6

GlaxoSmith Con*

Neutral

2,749

-

11,560

3,124

3,663

17.1

11.6

103.0

123.3

26.7

22.3

8.2

6.6

34.0

32.9

3.4

2.8

Godrej Consumer

Neutral

559

-

19,009

5,973

7,000

18.4

18.6

22.8

27.2

24.5

20.6

6.7

5.4

31.3

38.4

3.3

2.8

HUL

Neutral

419

-

90,567

25,350

29,309

14.3

14.4

14.1

16.4

29.7

25.6

22.2

17.3

82.7

76.2

3.4

2.9

ITC

Accumulate

234

252

182,795

29,638

34,159

35.4

35.8

9.3

10.9

25.0

21.5

8.1

6.6

35.3

33.8

5.9

5.1

www.angelbroking.com

Market Outlook
June 04, 2012

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Č cr )

( Č)

Price ( Č)

( Č cr )

FY13E

OPM(%)

FY14E

FY13E

FY14E

EPS ( Č)
FY13E

PER(x)

P/BV(x)

FY14E

FY13E

FY14E

FY13E

RoE(%)

EV/Sales(x)

FY14E

FY13E

FY14E

FY13E

FY14E

FMCG
Marico

Neutral

169

-

10,914

4,667

5,427

12.8

12.9

6.6

8.1

25.5

20.8

6.8

5.4

30.0

28.8

2.4

2.0

Nestle*

Neutral

4,569

-

44,055

8,731

10,539

21.0

21.4

119.3

147.9

38.3

30.9

23.5

16.0

73.0

61.6

5.1

4.1

Tata Global

Buy

106

136

6,533

7,011

7,712

9.7

10.0

6.0

7.1

17.8

14.8

1.6

1.6

8.9

10.2

0.8

0.7

HCL Tech

Accumulate

490

560

33,942

22,792

25,743

17.4

17.4

37.8

43.0

13.0

11.4

2.9

2.4

22.3

21.3

1.5

1.2

Hexaware

Accumulate

115

128

3,404

1,821

2,105

19.0

18.6

9.8

10.7

11.7

10.7

2.7

2.4

23.7

22.5

1.6

1.3

Infosys

Buy

2,388

2,792

137,115

37,615

42,491

31.1

30.6

158.5

174.5

15.1

13.7

3.4

2.9

22.5

20.8

3.0

2.5

Infotech Enterprises

Accumulate

168

177

1,872

1,758

1,972

17.0

16.6

16.8

18.6

10.0

9.0

1.4

1.2

13.6

13.2

0.7

0.5

KPIT Cummins

Reduce

123

114

2,189

2,028

2,239

15.0

14.8

9.0

11.4

13.7

10.8

2.5

2.0

19.3

18.7

1.1

0.9

Mahindra Satyam

Buy

74

86

8,673

7,097

7,812

16.2

16.0

7.5

8.0

9.8

9.3

1.3

1.1

13.2

12.3

0.8

0.7

Mindtree

Neutral

629

-

2,553

2,172

2,450

16.1

15.5

53.9

58.5

11.7

10.8

2.2

1.8

18.9

17.0

1.0

0.8

Mphasis

Buy

368

433

7,729

5,904

6,320

18.3

17.9

38.7

41.2

9.5

8.9

1.4

1.2

14.9

13.7

0.9

0.7

NIIT

Buy

41

52

682

1,162

1,304

14.8

15.1

7.1

8.8

5.8

4.7

1.0

0.9

16.7

18.4

0.4

0.3

Persistent

Neutral

344

-

1,377

1,109

1,224

23.3

22.4

37.2

40.1

9.3

8.6

1.4

1.2

15.4

14.5

0.9

0.8

TCS

Neutral

1,225

-

239,711

57,189

66,329

29.3

28.7

63.2

70.9

19.4

17.3

5.9

4.8

30.5

27.7

4.0

3.3

Tech Mahindra

Accumulate

655

725

8,346

5,880

6,314

15.6

15.2

75.9

82.2

8.6

8.0

1.7

1.4

20.1

18.1

1.4

1.2

Wipro

Accumulate

401

430

98,636

41,918

46,879

19.4

19.9

25.1

28.7

16.0

14.0

3.0

2.6

18.6

18.3

2.0

1.7

D B Corp

Buy

195

269

3,570

1,652

1,863

25.7

26.3

13.5

16.1

14.4

12.1

3.2

2.7

24.1

24.4

2.1

1.8

HT Media

Buy

114

148

2,669

2,255

2,555

16.3

16.7

9.0

10.6

12.6

10.7

1.6

1.4

13.4

13.8

0.8

0.6

Jagran Prakashan

Buy

89

137

2,820

1,499

1,642

27.4

28.8

7.6

9.1

11.7

9.8

3.9

3.5

34.6

37.7

1.8

1.7

PVR

Neutral

155

-

402

625

732

17.4

16.9

12.4

15.8

12.5

9.8

2.0

2.1

8.5

9.9

0.8

0.7

Sun TV Network

Neutral

227

-

8,934

2,135

2,458

75.2

74.4

20.9

24.0

10.9

9.4

2.5

2.1

26.0

25.1

3.1

2.5

Bhushan Steel

Neutral

435

-

9,237

9,232

13,557

30.8

31.1

48.0

58.6

9.1

7.4

1.2

1.0

14.5

7.5

3.1

2.2

Coal India

Accumulate

321

353

202,945

68,841

74,509

25.3

25.3

24.1

26.1

13.4

12.3

3.7

3.0

30.4

26.8

2.0

1.8

Electrosteel Castings

Buy

17

27

604

1,984

2,074

10.6

12.0

2.7

3.3

6.5

5.3

0.3

0.1

5.2

6.2

0.4

0.4

Hind. Zinc

Buy

117

139

49,288

13,043

14,223

51.8

52.8

14.8

16.6

7.9

7.0

1.5

1.3

21.2

19.9

2.1

1.5

Hindalco

Neutral

116

-

22,285

84,652

88,766

9.6

10.5

17.0

18.9

6.9

6.2

0.6

0.6

9.7

9.8

0.5

0.5

JSW Steel

Accumulate

601

663

13,402

39,592

44,910

18.0

17.7

74.7

88.9

8.0

6.8

0.8

0.7

10.7

11.6

0.7

0.6

MOIL

Accumulate

271

296

4,545

1,007

1,091

56.6

56.9

29.4

31.9

9.2

8.5

1.6

1.5

19.0

18.2

2.3

1.9

Monnet Ispat

Buy

398

593

2,560

3,115

3,748

22.1

25.1

59.1

66.8

6.7

6.0

0.9

0.8

15.6

15.3

1.6

1.2

IT

Media

Metals & Mining

www.angelbroking.com

Market Outlook
June 04, 2012

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

( Č)

Price ( Č)

( Č cr )

Sales ( Č cr )
FY13E

OPM(%)

FY14E

FY13E

FY14E

EPS ( Č)
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

57

54

14,806

8,474

9,024

12.6

16.2

2.6

3.6

22.5

16.0

1.2

1.2

5.6

7.5

1.3

1.2

165

187

65,418

11,959

13,062

78.2

78.6

19.1

20.9

8.7

7.9

2.1

1.8

27.1

24.4

3.4

2.9

SAIL
Sesa Goa

Accumulate

91

102

37,670

52,461

62,935

18.0

18.8

13.2

14.5

6.9

6.3

0.8

0.7

12.4

12.3

1.1

1.0

Accumulate

182

206

15,774

9,067

9,316

35.7

35.5

44.5

44.3

4.1

4.1

0.9

0.7

23.5

19.5

0.3

Sterlite Inds

-

Buy

91

123

30,649

45,805

49,029

21.2

23.5

16.5

19.1

5.5

4.8

0.6

0.5

11.5

12.0

0.3

0.2

Tata Steel

Buy

398

499

38,654 143,088 148,011

10.9

12.1

53.9

66.0

7.4

6.0

0.9

0.8

12.2

13.4

0.6

0.6

Cairn India

Buy

316

372

60,345

15,513

16,074

74.0

69.7

51.1

48.6

6.2

6.5

1.0

0.9

18.3

14.8

2.8

2.0

GAIL

Buy

331

392

41,987

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

246

319

210,722 148,157 150,563

37.6

39.5

31.0

33.6

8.0

7.3

1.4

1.3

18.8

18.1

1.1

0.9

Reliance Industries

Buy

684

872

223,881 325,734 328,669

10.9

11.7

65.8

70.1

10.4

9.8

1.1

1.0

11.9

11.5

0.7

0.6

Oil & Gas

Pharmaceuticals
Alembic Pharma

Buy

49

91

917

1,624

1,855

14.2

15.6

6.6

9.1

7.4

5.4

1.8

1.4

27.5

29.2

0.8

0.7

Aurobindo Pharma

Buy

105

175

3,055

5,243

5,767

14.6

14.6

13.8

14.7

7.6

7.1

0.9

0.4

11.4

10.9

0.9

0.8

Aventis*

Neutral

2,070

-

4,768

1,482

1,682

15.5

15.5

95.0

104.0

21.8

19.9

3.9

3.0

18.6

17.0

3.0

2.6

Cadila Healthcare

Buy

726

953

14,870

6,196

7,443

18.5

19.5

43.3

50.8

16.8

14.3

4.3

3.5

25.4

24.8

2.4

1.9

Cipla

Buy

309

379

24,774

7,687

8,804

21.4

21.4

16.5

18.9

18.7

16.3

2.9

2.6

16.7

16.8

3.2

2.7

Dr Reddy's

Neutral

1,650

-

27,967

10,696

11,662

20.7

21.0

83.7

92.9

19.7

17.8

4.1

3.4

22.4

21.0

2.7

2.5

Dishman Pharma

Buy

50

92

401

1,280

1,536

17.8

17.8

9.2

11.3

5.4

4.4

0.4

0.4

7.7

8.5

1.0

0.8

GSK Pharma*

Neutral

1,978

-

16,757

2,651

2,993

31.7

31.2

76.0

82.4

26.0

24.0

7.5

6.5

30.8

29.0

5.4

4.6

Indoco Remedies

Buy

54

665

498

685

837

15.2

15.2

55.5

66.5

1.0

0.8

0.2

0.1

16.4

16.9

0.9

0.8

Ipca labs

Buy

342

443

4,301

2,907

3,541

21.5

21.5

32.4

40.6

10.6

8.4

2.6

2.1

27.8

27.7

1.6

1.3

Lupin

Buy

538

646

24,032

8,426

10,082

19.7

20.0

29.7

32.4

18.1

16.6

4.7

3.8

27.0

25.2

2.8

2.2

Orchid Chemicals

Buy

118

178

833

2,117

2,434

17.7

17.7

16.7

22.2

7.1

5.3

0.7

0.6

9.5

11.5

1.0

0.9

Ranbaxy*

Neutral

492

-

20,772

12,046

11,980

18.0

15.8

35.7

29.8

13.8

16.5

5.2

4.2

43.1

28.1

1.8

1.7

Sun Pharma

Accumulate

569

634

58,586

9,272

11,080

40.3

36.3

26.7

28.8

21.3

19.8

4.3

3.7

22.1

20.8

5.6

4.6

CESC

Buy

267

342

3,331

5,084

5,512

24.2

23.8

45.2

48.5

5.9

5.5

0.6

0.6

11.2

10.9

1.1

1.1

GIPCL

Buy

59

98

889

1,557

1,573

28.7

27.5

10.4

10.2

5.7

5.8

0.6

0.5

10.5

9.6

1.0

0.9

NTPC

Accumulate

145

158

119,518

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

46

78

1,360

657

875

52.0

56.1

8.4

12.7

5.5

3.6

0.3

0.3

6.3

8.9

3.3

2.5

182

-

30,979

9,878

12,033

44.7

46.1

9.6

13.4

19.0

13.6

1.2

1.2

6.4

8.7

5.6

4.6

Power

Real Estate
Anant Raj

Buy

DLF

Neutral

www.angelbroking.com

Market Outlook
June 04, 2012

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 )

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

64

115

2,667

2,441

3,344

53.0

46.7

21.4

25.4

3.0

2.5

0.2

0.2

8.4

9.1

2.9

2.2

Real Estate
HDIL

Buy

Telecom
Bharti Airtel

Neutral

301

-

114,287

80,967

88,684

33.1

33.4

17.9

22.0

16.8

13.7

1.9

1.7

11.5

12.5

2.1

1.8

Idea Cellular

Neutral

76

-

25,217

22,558

25,326

26.4

27.5

3.2

4.7

23.6

16.1

1.8

1.6

7.5

10.0

1.6

1.4

Rcom

Neutral

63

-

12,931

21,899

23,740

32.7

32.7

4.2

6.7

14.8

9.4

0.3

0.3

2.1

3.2

2.0

1.6

183

245

1,825

3,670

4,384

8.5

8.5

18.3

22.3

10.0

8.2

2.2

1.8

23.9

24.3

0.5

0.4

zOthers
Bajaj Electrical

Buy

CRISIL

Neutral

1,067

-

7,486

982

1,136

34.3

34.3

34.3

40.0

31.1

26.7

14.1

11.3

50.9

46.9

7.2

6.1

Finolex Cables

Buy

37

61

567

2,334

2,687

8.8

9.3

7.6

10.2

4.9

3.6

0.6

0.5

13.7

16.1

0.2

0.1

Graphite India

Buy

89

124

1,736

2,158

2,406

18.1

18.9

12.4

14.0

7.2

6.3

1.0

0.9

14.0

14.3

0.9

0.8

Greenply

Buy

214

298

517

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

3,059

-

3,412

935

1,168

19.6

19.6

99.7

122.2

30.7

25.0

17.8

14.2

64.2

63.1

3.7

2.9

Sintex

Buy

52

129

1,415

4,751

5,189

16.3

16.6

13.6

15.8

3.8

3.3

0.5

0.4

13.1

13.4

0.7

0.5

Siyaram Silk Mills

Buy

257

439

241

1,042

1,173

12.4

12.5

66.3

78.5

3.9

3.3

0.8

0.6

21.1

20.8

0.5

0.4

SpiceJet

Neutral

28

-

1,342

5,384

6,443

(1.0)

4.1

(3.4)

2.4

(8.1)

11.6

(11.2)

23.6

-

-

0.4

0.4

Taj GVK

Buy

60

108

376

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

Buy

318

372

732

1,571

1,753

7.2

8.6

29.8

42.4

10.6

7.5

2.0

1.7

20.2

24.3

0.3

0.2

HEG

Buy

196

242

783

1,746

1,946

16.5

17.7

22.5

32.9

8.7

6.0

0.9

0.8

10.4

14.2

1.1

1.0

Hitachi

Buy

113

160

260

857

968

6.9

8.4

10.2

16.0

11.2

7.1

1.4

1.2

12.9

17.8

0.4

0.3

Honeywell Automation

Neutral

2,581

-

2,281

1,542

1,739

9.4

10.0

116.1

140.8

22.2

18.3

3.2

2.7

15.5

15.9

Ineos ABS

Accumulate

730

777

1,284

900

1,011

10.2

11.5

35.6

45.7

20.5

16.0

3.0

2.6

15.4

17.2

ITD Cementation

Accumulate

218

236

251

1,535

1,842

11.1

11.1

27.3

38.3

8.0

5.7

0.6

0.6

7.9

10.2

0.6

0.6

MRF

Buy

10,610

13,106

4,500

12,390

14,400

10.4

11.3 1,334.6 1,638.2

8.0

6.5

1.6

1.3

16.5

17.4

0.6

0.5

Relaxo

Accumulate

451

478

541

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

270

420

416

757

875

19.0

19.1

63.5

72.9

4.3

3.7

0.6

0.6

16.1

16.1

0.1

-

TVS Srichakra

Buy

320

462

245

1,612

1,827

9.5

9.8

72.3

92.5

4.4

3.5

1.3

1.0

33.1

32.1

0.4

0.3

Vesuvius India

Accumulate

367

413

746

628

716

16.4

16.5

29.8

34.4

12.3

10.7

2.2

1.8

18.8

18.6

1.0

0.8

Abbott India

Accumulate

1,422

1,628

3,023

1,661

1,918

9.7

12.0

60.7

90.4

23.5

15.7

4.8

3.9

22.0

27.3

1.6

1.3

Cera Sanitaryware Ltd

Accumulate

252

288

319

385

444

17.2

17.4

28.9

32.0

8.7

7.9

1.8

1.5

23.4

21.1

1.0

0.9

Jyothy Laboratories

Buy

215

268

1,736

1,315

1,568

8.6

11.1

6.4

10.9

33.8

19.8

2.8

2.7

8.4

13.9

1.6

1.3

Force Motors

Buy

438

680

571

2,346

2,753

6.7

7.0

50.9

61.9

8.6

7.1

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 June 01, 2012

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Market Outlook
June 04, 2012

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