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Market Outlook 

June 21, 2012

Dealer’s Diary
The Indian markets are expected to open in red taking cues from negative opening
in most of the Asia markets, as investors hoping for major new Federal Reserve
stimulus were disappointed. Asian markets closed mostly higher yesterday on
hopes of fresh stimulus measures ahead of the U.S. Federal Reserve meet.

Domestic Indices

U.S. markets ended mostly lower yesterday after the Federal Reserve cut its growth
forecasts and Chairman Ben Bernanke said the labor market had lost some steam.
Federal Reserve took the decision to extend the "Operation Twist” which involves
replacing short-term securities in the Fed's bond portfolio with longer-term
securities in an effort to push already low long-term interest rates even lower. Fed
said it would expand its program to replace short-term bonds with longer-term
debt by US$267bn through the end of 2012.
Meanwhile, Indian markets rose modestly yesterday, mirroring positive global cues
and continued hopes of a policy action on the fiscal front after the presidential
elections. Investors today will watch out for the manufacturing index for May 2012
and jobless claims data for the previous week of the U.S. economy.

Chg (%)

(Pts)

(Close)

BSE Sensex

0.2

36.8 16,897

Nifty

0.3

16.7

5,121

MID CAP

0.8

48.9

5,954

SMALL CAP

0.8

49.9

6,356

BSE HC

1.2

76.7

6,685

BSE PSU

0.6

38.4

7,002

BANKEX

0.4

47.7 11,330

AUTO

0.9

84.0

METAL

1.3

OIL & GAS

0.7

57.9

7,979

(0.4)

(23.2)

5,689

(Pts)

(Close)

BSE IT
Global Indices
Dow Jones

Chg (%)

(0.1)

9,261

131.8 10,437

(12.9) 12,824

NASDAQ

0.0

0.7

2,930

FTSE

0.6

36.0

5,622

Markets Today

Nikkei

1.1

96.4

8,752

The trend deciding level for the day is 16,900 / 5,121 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 16,959 – 17,022 / 5,141 – 5,162 levels. However, if NIFTY trades below
16,900 / 5,121 levels for the first half-an-hour of trade then it may correct up to
16,837 – 16,777 / 5,100 – 5,080 levels.

Hang Seng

0.5

Straits Times

0.5

13.3

2,856

(0.3)

(7.9)

2,293

Chg (%)

(Pts)

(Close)

Indices

S2

S1

PIVOT

R1

R2

INFY

(0.7)

(0.3)

$44.0

SENSEX

16,777

16,837

16,900

16,959

17,022

WIT

(0.2)

(0.0)

$9.1

NIFTY

5,080

5,100

5,121

5,141

5,162

IBN

(0.2)

(0.1)

$30.0

0.2

0.1

$30.9

Shanghai Com

Indian ADRs

HDB

102.2 19,519

News Analysis
„
„

FED extends Operation Twist
Airtel Nigeria pays fine for service quality

Advances / Declines

Refer detailed news analysis on the following page

` cr

Purch

Sales

Net

MTD

YTD

FII

1,903

1,761

142

390

42,328

401

413

(12)

371

(6095)

FII Derivatives (June 20, 2012)
` cr

Purch

Sales

Net

Open Interest

Index Futures

1,097

911

186

12,068

Stock Futures

1,725

1,732

(7)

23,674

Gainers / Losers
Gainers
Company
Educomp Sol

Losers

Price (`)

chg (%)

153

11.3

Company
TCS

Price (`)

chg (%)

1,252

(1.7)

Sintex Inds

61

5.1

Motherson Sumi

157

(1.7)

Century Tex

289

5.0

Coal India

339

(1.5)

India Cements

85

4.6

Glenmark Pharma

368

(1.5)

Hexaware Tech

124

4.6

Torrent Power

185

(1.5)

www.angelbroking.com

NSE

Advances

1,595

897

Declines

1,136

519

146

100

Unchanged

Net Inflows (June 19, 2012)

MFs

BSE

Volumes (` cr)
BSE

1,904

NSE

9,316

Market Outlook
June 21, 2012

FED extends Operation Twist
Fed officials cut their estimate for gross domestic product growth in 2012 to
between 1.9% and 2.4% and extended the Operation Twist program to prolong
the maturities of assets on its balance sheet.
The central bank's easing initiative Operation Twist was originally set to expire on
June 30 after swapping $400bn short-dated Treasury for longer-dated ones. The
Fed announced it plans on exchanging another US$267bn Treasury extending the
program to the end of 2012. The US markets were mostly left disappointed and
ended lower on Wednesday as they had been expecting a more robust stimulus.

Airtel Nigeria pays fine for service quality
Airtel Nigeria, subsidiary of Bharti Airtel, South Africa's MTN, Abu Dhabi's Etisalat
and local operator Globacom have paid US$3.7mn in fine imposed on them by
the country's telecom regulatory authority for poor quality of service. NCC had
penalized the before mentioned four operators in the country for poor quality of
services after a key performance indicators (KPIs) test carried out on their networks
for the months of March and April. The NCC had arrived at the decision on testing
the operators on four parameters - call set-up success rate, call completion rate,
drop call rate and traffic channel congestion. Meanwhile, the operators blame that
the bad quality of services on poorly developed infrastructure like electricity which,
they say makes it cumbersome to deliver services to subscribers. We maintain our
Neutral view on Bharti Airtel.

Economic and Political News
„
„
„
„

FDI in aviation may take long as differences with TMC persist
Government likely to slap 21% duty on imported power gear
Government to exempt 14 more services from tax
Pranab Mukherjee to preside over EGoM to discuss spectrum price today

Corporate News
„
„
„
„

Alstom T&D India receives orders worth `176cr
Educomp ties up `850cr to repay FCCBs
Fitch cuts outlook to negative for 8 banks, including SBI, ICICI
Ranbaxy ties up with Daiichi to sell drugs in Venezuela

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

www.angelbroking.com

Market Outlook
June 21, 2012

Global economic events release calendar
Date

June 21, 2012

Country

Event Description

Unit

Period

Bloomberg Data
Last Reported

Estimated

US

Initial Jobless claims

Thousands

JUN 16

386.00

383.00

Germany

Value

JUN A

45.20

45.20

Value

JUN A

(19.30)

(20.00)

US

PMI Manufacturing
Euro-Zone Consumer
Confidence
Existing home sales

Germany

PMI Services

June 25, 2012

US

New home sales

June 26, 2012

US

Consumer Confidence

June 28, 2012

Germany

Euro Zone

Millions

MAY

4.62

4.57

Value

JUN A

51.80

51.50

MAY

343.00

345.50

JUN

64.90

64.00

Unemployment change (000's)

Thousands
S.A./
1985=100
Thousands

JUN

--

--

US

GDP Qoq (Annualised)

% Change

1Q T

1.90

1.90

% Change

1Q F

(0.10)

--

Value

JUN

50.40

--

UK

GDP (YoY)

July 01, 2012

China

PMI Manufacturing

July 02, 2012

India

Imports YoY%

% Change

MAY

3.80

--

India

Exports YoY%

% Change

MAY

3.20

--

UK

PMI Manufacturing

UK

BOE Announces rates

Euro Zone

Value

JUN

45.90

--

% Ratio

JUL 5

0.50

0.50

ECB announces interest rates

%

JUL 5

1.00

--

US

Change in Nonfarm payrolls

Thousands

JUN

69.00

--

US

Unnemployment rate

%

JUN

8.20

--

July 09, 2012

China

Consumer Price Index (YoY)

% Change

JUN

3.00

--

July 10, 2012

UK

Industrial Production (YoY)

% Change

MAY

(1.00)

--

China

Exports YoY%

% Change

JUN

15.30

--

July 12, 2012

India

% Change

MAY

0.10

--

July 13, 2012

India

% Change

JUN

7.55

--

US

Industrial Production YoY
Monthly Wholesale Prices
YoY%
Producer Price Index (mom)

% Change

JUN

(1.00)

--

China

Industrial Production (YoY)

% Change

JUN

9.60

--

China

Real GDP (YoY)

% Change

2Q

8.10

--

July 16, 2012

Euro Zone

Euro-Zone CPI (YoY)

%

JUN

2.40

--

July 17, 2012

UK

CPI (YoY)

% Change

JUN

2.80

--

US

Industrial Production

%

JUN

(0.09)

--

US

Consumer price index (mom)

% Change

JUN

(0.30)

--

US

Housing Starts

Thousands

JUN

708.00

--

US

Building permits

Thousands

JUN

780.00

--

UK

Jobless claims change

% Change

JUN

8.10

--

July 05, 2012

July 06, 2012

July 18, 2012

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Strategy
June 21, 2012

Macro watch
Exhibit 1: Quarterly GDP trends

(%)

1.0

(6.0)

Mfg. PMI

60.0
9.8

9.4

10.0

9.9

Apr-12

Services PMI

58.0

9.5
7.7

8.0

6.9

7.4

7.7

7.2

7.6

56.0

Source: MOSPI, Angel Research

(%)

Exports yoy growth

Exhibit 6: Key policy rates

Imports yoy growth

60
45
30
15

Source: Bloomberg, Angel Research

Apr-12

Mar-12

Feb-12

Jan-12

Dec-11

Nov-11

Oct-11

Sep-11

Aug-11

Jul-11

Jun-11

May-11

0

www.angelbroking.com

May-12

Apr-12

Mar-12

Feb-12

Jan-12

Dec-11

Nov-11

Oct-11

Sep-11

Aug-11

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

Exhibit 5: Exports and imports growth trends
75

May-11

May-12

Apr-12

Mar-12

Feb-12

Jan-12

Aug-11

Dec-11

48.0

Nov-11

0.0

Oct-11

50.0

Sep-11

2.0

Jul-11

52.0

Jun-11

4.0

Jul-11

54.0

6.0

(15)

(3.2)

(5.0)

Exhibit 4: Manufacturing and services PMI

(%)
9.5

0.1

Source: MOSPI, Angel Research

Exhibit 3: Monthly WPI inflation trends
12.0

2.7

2.5

Mar-12

(4.0)

4.1

3.4

Feb-12

4QFY12

3QFY12

2QFY12

1QFY12

4QFY11

3QFY11

2QFY11

1QFY11

4QFY10

(2.0)

3QFY10

3.0

2QFY10

-

1QFY10

4.0

4QFY09

2.0

Source: CSO, Angel Research

3.7

4.0

Jan-12

5.3

5.0

10.0

6.0

Dec-11

5.9

6.0

6.2

6.0

6.1

Nov-11

8.0
6.7

Oct-11

7.4

Jun-11

7.0

9.5

10.0

8.0

Sep-11

7.5

8.0

8.2
7.6

Aug-11

8.5

9.0

12.0

9.2

Jul-11

9.4

Jun-11

9.8

May-11

(%)
10.0

Exhibit 2: IIP trends

Source: RBI, Angel Research

Market Outlook
June 21, 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

132

-

2,576

1,432

1,647

14.7

14.7

7.0

8.0

18.9

16.6

4.0

3.4

22.8

22.3

1.8

1.5

United Phosphorus

Buy

114

183

5,234

8,191

8,764

16.5

16.5

17.1

18.3

6.6

6.2

1.1

0.9

17.5

16.2

0.8

0.7

Amara Raja Batteries

Accumulate

302

345

2,578

2,715

3,041

15.3

15.3

29.2

32.8

10.4

9.2

2.4

1.9

26.0

23.3

0.9

0.8

Apollo Tyres

Buy

77

100

3,899

13,699

15,184

10.5

10.2

12.1

13.3

6.4

5.8

1.2

1.0

19.7

18.4

0.4

0.4

Ashok Leyland

Buy

25

33

6,678

14,798

16,687

9.6

9.6

2.4

3.0

10.4

8.4

2.1

1.8

14.8

16.5

0.5

0.4

Automotive Axle

Accumulate

455

514

688

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

1,535

1,835

44,425

22,118

24,889

19.0

18.6

115.7

126.5

13.3

12.1

5.3

4.2

45.0

38.9

1.6

1.3

Bharat Forge

Buy

304

372

7,087

7,173

7,998

16.3

16.5

22.3

26.6

13.6

11.5

2.6

2.2

21.0

21.0

1.1

0.9

Bosch India

Accumulate

8,942

9,429

28,078

9,390

10,716

19.5

19.1

420.2

471.4

21.3

19.0

5.0

4.1

23.3

21.8

2.7

2.3

CEAT

Buy

94

164

321

5,067

5,631

8.0

7.6

39.4

41.0

2.4

2.3

0.4

0.4

18.8

16.5

0.3

0.3

Exide Industries

Accumulate

134

146

11,411

5,787

6,595

15.5

17.0

7.1

9.0

18.9

15.0

3.3

2.8

18.6

20.3

1.6

1.3

FAG Bearings

Accumulate

1,466

1,594

2,436

1,531

1,748

18.8

18.5

118.0

132.8

12.4

11.0

2.7

2.2

24.0

21.9

1.3

1.1

Hero Motocorp

Accumulate

2,033

2,221

40,589

26,106

29,296

15.0

15.2

140.3

148.1

14.5

13.7

6.8

5.3

54.8

43.3

1.2

1.0

JK Tyre

Buy

85

135

348

7,950

8,904

5.5

6.0

25.1

38.6

3.4

2.2

0.4

0.3

12.1

16.4

0.3

0.3

Auto & Auto Ancillary

Mahindra and Mahindra Buy

695

821

42,647

36,010

40,882

10.0

10.0

47.7

53.3

14.6

13.0

2.9

2.5

21.3

20.6

0.9

0.8

Maruti

Buy

1,078

1,510

31,156

42,683

48,736

7.1

7.5

86.6

100.6

12.5

10.7

1.8

1.6

15.3

15.5

0.5

0.4

Motherson Sumi

Buy

157

216

6,143

23,342

26,366

7.8

8.2

13.3

18.0

11.8

8.7

2.8

2.2

26.2

28.4

0.4

0.4

Subros

Buy

31

36

186

1,244

1,402

8.4

8.3

4.5

5.1

6.9

6.1

0.7

0.7

9.9

11.0

0.4

0.3

Tata Motors

Buy

246

299

65,455 189,676 210,905

12.5

12.6

39.8

45.2

6.2

5.4

2.5

2.1

44.3

41.6

0.4

0.3

TVS Motor

Buy

33

44

1,577

7,690

8,459

6.1

6.0

5.0

5.5

6.7

6.0

1.2

1.1

19.0

18.6

0.2

0.1

ABB*

Sell

782

498

16,563

8,760

10,023

7.6

7.5

18.2

20.7

42.9

37.7

5.8

5.2

14.4

14.6

1.8

1.6

BGR Energy

Neutral

290

-

2,091

4,195

4,837

11.0

11.0

30.1

32.4

9.6

9.0

1.7

1.5

18.4

17.6

1.0

1.0

BHEL

Neutral

215

-

52,623

46,344

46,916

18.3

18.6

23.5

24.1

9.1

8.9

1.8

1.6

21.3

18.9

1.0

1.0

Blue Star

Neutral

165

-

1,482

3,047

3,328

5.4

6.9

9.6

16.2

17.2

10.2

3.4

2.7

20.7

29.7

0.6

0.5

Crompton Greaves

Buy

119

142

7,659

12,451

14,265

7.9

8.3

8.0

9.5

15.0

12.6

2.0

1.8

13.9

14.9

0.6

0.5

Jyoti Structures

Buy

39

67

317

2,622

2,801

10.6

11.0

10.9

13.4

3.6

2.9

0.5

0.4

13.7

14.9

0.3

0.3

KEC International

Buy

55

73

1,406

6,686

7,200

8.5

8.8

10.6

12.2

5.2

4.5

1.0

0.8

25.9

24.0

0.3

0.3

LMW

Buy

1,612

1,992

1,816

2,369

2,727

11.7

11.7

143.4

166.0

11.2

9.7

1.9

1.7

17.4

18.4

0.3

0.2

Thermax

Neutral

463

-

5,516

5,514

5,559

9.8

9.6

29.7

28.4

15.6

16.3

2.9

2.6

20.2

16.9

0.9

0.8

Capital Goods

www.angelbroking.com

Market Outlook
June 21, 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

1,271

-

23,864

11,018

12,663

19.9

21.2

70.7

81.2

18.0

15.7

3.1

2.8

18.0

19.0

1.8

1.5

Ambuja Cements

Neutral

175

-

26,987

10,035

11,504

23.5

23.8

10.1

10.6

17.3

16.6

3.4

3.1

18.5

19.4

2.2

1.8

India Cements

Neutral

85

-

2,622

4,423

4,906

18.2

18.8

9.9

12.7

8.7

6.8

0.7

0.7

8.6

10.5

0.8

0.7

J K Lakshmi Cements

Buy

64

79

786

1,938

2,246

19.1

20.1

14.6

16.1

4.4

4.0

0.6

0.5

13.4

13.6

0.5

0.9

Madras Cements

Neutral

153

-

3,636

3,444

3,786

25.5

24.9

14.6

17.1

10.5

9.0

1.5

1.3

15.6

16.0

1.7

1.4

Shree Cements

Neutral

2,661

-

9,272

5,465

6,249

24.3

23.7

151.5

222.1

17.6

12.0

4.2

3.6

21.6

25.8

1.4

1.1

UltraTech Cement

Neutral

1,431

-

39,209

20,116

22,655

21.3

22.5

82.1

97.5

17.4

14.7

2.7

2.4

16.8

17.4

1.9

1.8

196

273

1,032

2,014

2,293

22.4

22.4

22.6

26.7

8.7

7.4

0.9

0.8

11.4

11.9

2.3

2.6

Construction
Ashoka Buildcon

Buy

Consolidated Co

Neutral

14

-

255

2,526

2,792

5.7

6.6

1.8

2.8

7.5

4.9

0.4

0.4

5.5

8.1

0.3

0.3

Hind. Const.

Neutral

19

-

1,168

4,239

4,522

11.1

11.8

(1.8)

(0.8)

(10.7)

(24.7)

1.1

1.2

(9.5)

(4.7)

1.3

1.2

IRB Infra

Buy

124

166

4,106

3,821

4,582

42.3

40.2

15.0

16.9

8.2

7.3

1.2

1.1

16.1

15.8

2.7

2.5

ITNL

Buy

183

265

3,551

6,619

7,925

23.8

23.3

22.0

26.7

8.3

6.9

1.2

1.0

14.9

15.9

2.2

2.1

IVRCL Infra

Buy

49

61

1,307

5,510

6,722

8.8

9.0

2.5

4.6

19.3

10.7

0.6

0.6

3.4

5.8

0.7

0.7

Jaiprakash Asso.

Buy

71

88

15,172

15,259

17,502

25.7

24.7

4.2

5.0

16.8

14.3

1.4

1.3

8.5

9.3

2.3

2.0

Larsen & Toubro

Buy

1,342

1,553

82,226

59,559

69,089

12.1

11.5

70.8

76.5

19.0

17.6

2.8

2.5

16.1

15.3

1.5

1.3

Madhucon Proj

Buy

35

70

259

2,206

2,502

10.7

10.7

4.6

4.7

7.6

7.5

0.4

0.4

5.2

5.0

0.7

0.7

Nagarjuna Const.

Accumulate

39

41

994

5,453

6,169

8.1

8.5

1.6

1.9

23.6

20.1

0.4

0.4

1.8

2.1

0.6

0.7

Patel Engg.

Neutral

90

-

630

3,609

3,836

13.1

13.1

14.0

14.6

6.4

6.2

0.4

0.4

6.3

6.1

1.0

1.1

Punj Lloyd

Neutral

47

-

1,548

11,592

12,993

8.4

8.4

1.8

3.2

25.9

14.6

0.5

0.5

2.0

3.4

0.6

0.5

Sadbhav Engg.

Buy

136

182

2,043

2,789

3,147

10.6

10.7

8.4

10.4

16.1

13.0

2.2

1.9

15.0

15.6

0.9

0.8

Simplex Infra

Buy

208

265

1,030

6,732

7,837

8.1

8.4

23.5

29.4

8.9

7.1

0.8

0.7

9.6

11.0

0.5

0.4

Allahabad Bank

Neutral

143

-

7,170

7,392

8,542

3.1

3.1

38.3

42.1

3.8

3.4

0.7

0.6

18.4

17.6

-

-

Andhra Bank

Neutral

116

-

6,463

5,151

5,843

3.2

3.1

22.4

25.7

5.2

4.5

0.8

0.7

15.8

16.0

-

-

Axis Bank

Buy

1,003

1,476

41,547

16,157

19,557

3.2

3.2

116.4

139.1

8.6

7.2

1.6

1.4

20.0

20.3

-

-

Bank of Baroda

Buy

680

925

26,623

15,993

18,918

2.6

2.6

127.3

149.9

5.3

4.5

0.9

0.8

17.8

18.2

-

-

Bank of India

Buy

341

389

19,546

13,558

15,551

2.5

2.4

61.6

70.8

5.5

4.8

0.9

0.8

16.8

16.9

-

-

Bank of Maharashtra

Accumulate

Canara Bank

Buy

Central Bank

Neutral

Financials

www.angelbroking.com

49

53

2,874

3,580

4,050

3.2

3.2

11.5

13.1

4.2

3.7

0.7

0.6

17.4

17.2

-

-

409

493

18,110

12,061

13,906

2.3

2.3

83.1

92.7

4.9

4.4

0.8

0.7

16.7

16.4

-

-

78

-

5,745

6,838

7,912

2.3

2.4

13.8

20.3

5.7

3.8

0.8

0.7

10.9

14.4

-

-

Market Outlook
June 21, 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

Financials
Corporation Bank

Accumulate

411

468

6,091

5,203

5,880

2.2

2.1

107.5

112.7

3.8

3.7

0.7

0.6

17.9

16.5

-

-

Dena Bank

Accumulate

96

107

3,373

3,149

3,522

2.8

2.8

23.3

26.1

4.1

3.7

0.7

0.6

17.7

17.0

-

-

Federal Bank

Neutral

428

-

7,323

2,743

3,131

3.4

3.3

49.7

57.4

8.6

7.5

1.2

1.0

14.1

14.6

-

-

HDFC

Neutral

642

-

95,262

7,393

8,844

3.5

3.4

31.7

37.9

20.3

16.9

4.1

3.6

34.7

31.9

-

-

HDFC Bank

Accumulate

535

567

125,730

21,831

27,477

4.3

4.3

28.3

35.5

18.9

15.1

3.6

3.1

20.8

22.1

-

-

ICICI Bank

Buy

833

1,174

95,779

22,209

26,512

2.8

2.8

67.9

81.1

12.3

10.3

1.5

1.4

14.7

16.0

-

-

IDBI Bank

Buy

Indian Bank

Accumulate

IOB

89

113

11,435

8,004

9,589

1.9

2.0

19.9

23.9

4.5

3.7

0.6

0.5

13.8

14.9

-

-

174

190

7,474

6,312

7,119

3.4

3.3

41.1

43.7

4.2

4.0

0.7

0.6

18.2

16.9

-

-

Neutral

89

-

7,105

7,354

8,283

2.5

2.4

16.3

21.7

5.5

4.1

0.6

0.6

11.5

13.9

-

-

J & K Bank

Neutral

929

-

4,504

2,535

2,861

3.5

3.4

176.3

184.4

5.3

5.0

1.0

0.8

19.3

17.6

-

-

LIC Housing Finance

Accumulate

253

286

12,776

2,108

2,607

2.6

2.6

24.5

30.6

10.4

8.3

1.9

1.6

20.1

21.4

-

-

Oriental Bank

Accumulate

238

262

6,932

6,431

7,315

2.7

2.6

54.4

63.8

4.4

3.7

0.6

0.5

13.6

14.3

-

-

Punjab Natl.Bank

Buy

754

1,041

25,588

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

23

-

2,650

1,440

1,635

2.7

2.5

3.8

4.1

6.2

5.7

1.2

1.1

19.9

18.6

-

-

St Bk of India

Buy

2,117

2,469

142,040

68,311

79,649

3.6

3.6

230.4

273.4

9.2

7.7

1.5

1.3

18.2

18.8

-

-

Syndicate Bank

Buy

101

126

6,053

7,133

8,255

3.0

3.0

25.9

30.0

3.9

3.4

0.6

0.5

16.9

17.1

-

-

UCO Bank

Neutral

74

-

4,906

5,623

6,380

2.4

2.4

16.9

17.9

4.4

4.1

0.8

0.7

16.5

15.4

-

-

Union Bank

Buy

204

261

11,250

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

62

78

2,229

3,551

4,128

2.7

2.8

18.8

22.6

3.3

2.7

0.5

0.4

15.5

16.5

-

-

Vijaya Bank

Neutral

59

-

2,911

2,668

3,001

2.2

2.2

10.6

12.2

5.5

4.8

0.8

0.7

13.3

13.8

-

-

Yes Bank

Buy

332

450

11,750

3,209

4,144

2.7

2.8

33.9

41.5

9.8

8.0

2.1

1.7

23.1

23.3

-

-

3,887

-

37,288

11,423

13,309

16.3

16.3

125.3

148.4

31.0

26.2

10.5

8.3

38.0

35.4

3.2

2.7

524

633

6,257

5,835

6,824

6.3

6.7

20.7

27.5

25.3

19.0

9.9

7.4

42.7

44.3

1.0

0.9

1,113

-

15,141

3,007

3,417

21.1

22.1

38.2

43.8

29.1

25.5

34.7

27.3

130.2

119.9

4.9

4.3

FMCG
Asian Paints

Neutral

Britannia

Buy

Colgate

Neutral

Dabur India

Neutral

110

-

19,163

5,878

6,799

16.8

17.0

4.2

4.9

26.5

22.4

9.6

7.9

39.3

42.0

3.2

2.8

GlaxoSmith Con*

Neutral

2,602

-

10,944

3,124

3,663

17.1

11.6

103.0

123.3

25.3

21.1

7.8

6.3

34.0

32.9

3.2

2.6

Godrej Consumer

Neutral

556

-

18,924

5,973

7,000

18.4

18.6

22.8

27.2

24.4

20.5

6.7

5.4

31.3

38.4

3.3

2.8

HUL

Neutral

455

-

98,273

25,350

29,309

14.3

14.4

14.1

16.4

32.2

27.7

24.1

18.8

82.7

76.2

3.6

3.1

ITC

Neutral

246

-

192,529

29,638

34,159

35.4

35.8

9.3

10.9

26.4

22.6

8.5

6.9

35.3

33.8

6.3

5.4

www.angelbroking.com

Market Outlook
June 21, 2012

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Č cr )

( Č)

Price ( Č)

( Č cr )

FY13E

OPM(%)

EPS ( Č)

FY14E

FY13E

FY14E

FY13E

PER(x)

P/BV(x)

FY14E

FY13E

FY14E

FY13E

RoE(%)

EV/Sales(x)

FY14E

FY13E

FY14E

FY13E

FY14E

FMCG
Marico

Neutral

175

-

11,295

4,667

5,427

12.8

12.9

6.6

8.1

26.4

21.6

7.1

5.5

30.0

28.8

2.4

2.0

Nestle*

Neutral

4,587

-

44,226

8,731

10,539

21.0

21.4

119.3

147.9

38.5

31.0

23.6

16.1

73.0

61.6

5.1

4.1

Tata Global

Buy

106

136

6,570

7,011

7,711

9.7

10.0

6.3

7.5

17.0

14.2

1.6

1.6

9.5

10.9

0.8

0.8

HCL Tech

Buy

487

560

33,730

22,792

25,743

17.4

17.4

37.8

43.0

12.9

11.3

2.8

2.4

22.3

21.3

1.4

1.2

Hexaware

Accumulate

124

128

3,680

1,821

2,105

19.0

18.6

9.8

10.7

12.7

11.6

2.9

2.5

23.7

22.5

1.7

1.4

Infosys

Accumulate

2,471

2,792

141,872

37,615

42,491

31.1

30.6

158.5

174.5

15.6

14.2

3.5

3.0

22.5

20.8

3.1

2.6

Infotech Enterprises

Accumulate

158

177

1,755

1,758

1,972

17.0

16.6

16.8

18.6

9.4

8.5

1.3

1.1

13.6

13.2

0.6

0.5

KPIT Cummins

Neutral

110

-

1,951

2,028

2,239

15.0

14.8

9.0

11.4

12.2

9.6

2.2

1.8

19.3

18.7

0.9

0.8

Mahindra Satyam

Accumulate

76

86

8,967

7,097

7,812

16.2

16.0

7.5

8.0

10.2

9.6

1.3

1.2

13.2

12.3

0.9

0.7

Mindtree

Neutral

614

-

2,497

2,172

2,450

16.1

15.5

53.9

58.5

11.4

10.5

2.1

1.8

18.9

17.0

1.0

0.8

Mphasis

Accumulate

352

373

7,394

5,608

5,964

17.7

17.3

35.5

36.8

9.9

9.6

1.4

1.2

13.9

12.6

0.8

0.7

NIIT

Buy

42

52

693

1,162

1,304

14.8

15.1

7.1

8.8

5.9

4.8

1.0

0.9

16.7

18.4

0.5

0.3

Persistent

Neutral

378

-

1,511

1,109

1,224

23.3

22.4

37.2

40.1

10.2

9.4

1.6

1.4

15.4

14.5

1.0

0.9

TCS

Neutral

1,252

-

245,054

57,189

66,329

29.3

28.7

63.2

70.9

19.8

17.7

6.1

4.9

30.5

27.7

4.1

3.5

Tech Mahindra

Accumulate

685

725

8,732

5,880

6,314

15.6

15.2

75.9

82.2

9.0

8.3

1.8

1.5

20.1

18.1

1.4

1.3

Wipro

Accumulate

400

452

98,398

43,150

48,541

20.0

20.5

25.9

30.1

15.4

13.3

3.0

2.5

19.1

19.0

1.9

1.6

D B Corp

Buy

195

269

3,569

1,652

1,863

25.7

26.3

13.5

16.1

14.4

12.1

3.2

2.7

24.1

24.4

2.0

1.7

HT Media

Buy

98

148

2,291

2,255

2,555

16.3

16.7

9.0

10.6

10.8

9.2

1.4

1.2

13.4

13.8

0.6

0.5

Jagran Prakashan

Buy

85

137

2,680

1,499

1,642

27.4

28.8

7.6

9.1

11.1

9.3

3.7

3.3

34.6

37.7

1.7

1.6

PVR

Neutral

150

-

390

625

732

17.4

16.9

12.4

15.8

12.1

9.5

1.9

2.0

8.5

9.9

0.8

0.7

Sun TV Network

Neutral

278

-

10,950

2,135

2,458

75.2

74.4

20.9

24.0

13.3

11.6

3.1

2.6

26.0

25.1

3.9

3.1

Bhushan Steel

Neutral

459

-

9,751

9,232

13,557

30.8

31.1

48.0

58.6

9.6

7.8

1.2

1.1

14.5

7.5

3.2

2.2

Coal India

Neutral

338

-

213,619

68,841

74,509

25.3

25.3

24.1

26.1

14.1

13.0

3.9

3.2

30.4

26.8

2.3

1.9

Electrosteel Castings

Buy

17

22

588

1,984

2,074

11.2

12.6

2.0

2.7

8.4

6.3

0.3

0.1

4.2

5.5

0.5

0.4

Hind. Zinc

Buy

122

139

51,401

13,043

14,223

51.8

52.8

14.8

16.6

8.2

7.3

1.6

1.4

21.2

19.9

2.0

1.5

Hindalco

Neutral

122

-

23,434

83,463

91,313

9.0

9.9

13.7

18.1

9.0

6.8

0.7

0.6

7.9

9.6

0.5

0.5

JSW Steel

Neutral

649

-

14,476

39,592

44,910

18.0

17.7

74.7

88.9

8.7

7.3

0.8

0.7

10.7

11.6

0.7

0.7

MOIL

Accumulate

268

296

4,500

1,007

1,091

56.6

56.9

29.4

31.9

9.1

8.4

1.6

1.4

19.0

18.2

2.3

1.8

Monnet Ispat

Buy

355

447

2,283

3,115

3,748

22.1

25.1

59.1

66.8

6.0

5.3

0.8

0.7

15.6

15.3

1.5

1.1

IT

Media

Metals & Mining

www.angelbroking.com

Market Outlook
June 21, 2012

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

( Č)

Price ( Č)

( Č cr )

60

54

15,451

174

187

68,966

Sales ( Č cr )
FY13E

OPM(%)

FY14E

FY13E

FY14E

8,474

9,024

12.6

16.2

11,959

13,062

78.2

78.6

EPS ( Č)
FY13E

PER(x)

P/BV(x)

RoE(%)

FY14E

FY13E

FY14E

FY13E

FY14E

2.6

3.6

23.4

16.7

1.3

1.2

19.1

20.9

9.1

8.3

2.2

1.9

FY13E

EV/Sales(x)

FY14E

FY13E

FY14E

5.6

7.5

1.4

1.3

27.1

24.4

3.6

3.1
1.1

Metals & Mining
Nalco

Reduce

NMDC

Accumulate

SAIL

Neutral

92

-

37,794

50,914

60,785

14.6

15.1

9.4

10.5

9.7

8.7

0.9

0.8

9.2

9.6

1.2

Sesa Goa

Buy

182

206

15,852

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

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

0.2

Tata Steel

Buy

427

499

41,456 143,088 148,011

10.9

12.1

53.9

66.0

7.9

6.5

0.9

0.8

12.2

13.4

0.6

0.6

Cairn India

Accumulate

334

372

63,713

15,513

16,074

74.0

69.7

51.1

48.6

6.5

6.9

1.1

0.9

18.3

14.8

2.9

2.1

GAIL

Buy

339

389

43,001

50,472

55,502

15.3

15.6

35.4

37.0

9.6

9.2

1.7

1.5

19.0

17.2

0.1

-

ONGC

Buy

273

321

233,308 156,331 159,043

37.7

36.3

31.3

32.6

8.7

8.4

1.5

1.4

18.7

17.3

1.2

1.0

Reliance Industries

Buy

738

897

241,531 316,404 319,119

11.2

12.0

63.5

68.7

11.6

10.7

1.2

1.1

11.7

11.4

0.7

0.7

Oil & Gas

Pharmaceuticals
Alembic Pharma

Buy

56

91

1,046

1,624

1,855

14.2

15.6

6.6

9.1

8.4

6.1

2.0

1.6

27.5

29.2

0.8

0.7

Aurobindo Pharma

Buy

107

156

3,100

5,243

5,767

14.6

14.6

13.8

14.7

7.7

7.2

0.9

0.4

11.4

10.9

0.7

0.6

Aventis*

Neutral

2,126

-

4,895

1,482

1,682

15.5

15.5

95.0

104.0

22.4

20.4

4.0

3.1

18.6

17.0

3.1

2.6

Cadila Healthcare

Buy

744

953

15,227

6,196

7,443

18.5

19.5

43.3

50.8

17.2

14.6

4.4

3.5

25.4

24.8

2.4

1.9

Cipla

Buy

309

379

24,778

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

1,590

-

26,969

10,696

11,662

20.7

21.0

83.7

92.9

19.0

17.1

3.9

3.3

22.4

21.0

2.6

2.3

Dishman Pharma

Buy

58

92

472

1,280

1,536

17.8

17.8

9.2

11.3

6.4

5.2

0.5

0.4

7.7

8.5

1.0

0.8

GSK Pharma*

Neutral

2,027

-

17,169

2,651

2,993

31.7

31.2

76.0

82.4

26.7

24.6

7.7

6.7

30.8

29.0

5.5

4.7

Indoco Remedies

Buy

55

82

509

685

837

15.2

15.2

7.4

8.9

7.5

6.2

1.1

0.9

15.9

16.3

0.9

0.7

Ipca labs

Buy

346

435

4,348

2,850

3,474

20.3

20.3

26.6

32.7

13.0

10.6

3.3

2.7

28.2

27.9

1.7

1.4

Lupin

Buy

526

647

23,482

8,426

10,082

19.7

20.0

29.7

32.4

17.7

16.2

4.6

3.7

27.0

25.2

2.7

2.1

Orchid Chemicals

Buy

113

178

796

2,117

2,434

17.7

17.7

16.7

22.2

6.8

5.1

0.6

0.6

9.5

11.5

1.0

0.8

Ranbaxy*

Neutral

485

-

20,491

12,046

11,980

18.0

15.8

35.7

29.8

13.6

16.3

5.1

4.2

43.1

28.1

1.7

1.6

Sun Pharma

Neutral

605

-

62,284

9,272

11,080

38.6

38.0

22.7

22.6

26.6

26.8

4.5

3.9

17.9

15.6

5.0

3.9

CESC

Buy

278

342

3,478

5,084

5,512

24.2

23.8

45.2

48.5

6.2

5.7

0.7

0.6

11.2

10.9

1.1

1.1

GIPCL

Buy

62

77

933

1,557

1,573

28.8

28.5

10.4

10.9

6.0

5.7

0.6

0.6

10.4

10.2

1.1

0.9

NTPC

Accumulate

150

158

123,435

74,766

86,549

23.1

23.4

12.4

14.1

12.0

10.6

1.5

1.4

13.0

13.5

2.4

2.2

46

78

1,362

657

875

52.0

56.1

8.4

12.7

5.5

3.6

0.3

0.3

6.3

8.9

3.4

2.5

186

-

31,659

9,878

12,033

44.7

46.1

9.6

13.4

19.5

13.9

1.2

1.2

6.4

8.7

5.7

4.7

Power

Real Estate
Anant Raj

Buy

DLF

Neutral

www.angelbroking.com

Market Outlook
June 21, 2012

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Č cr )

OPM(%)

EPS ( Č)

PER(x)

P/BV(x)

RoE(%)

( Č)

Price ( Č)

( Č cr )

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

EV/Sales(x)

FY14E

FY13E

FY14E

Real Estate
HDIL

Buy

73

115

3,067

2,441

3,344

53.0

46.7

21.4

25.4

3.4

2.9

0.3

0.3

8.4

9.1

3.1

2.3

MLIFE

Buy

311

376

1,271

814

897

26.9

27.0

31.3

33.9

9.9

9.2

1.0

0.9

10.2

10.1

1.9

1.7

Bharti Airtel

Neutral

311

-

117,989

80,961

86,705

33.5

34.0

17.2

20.8

18.1

15.0

2.1

1.8

11.5

12.3

2.2

1.9

Idea Cellular

Neutral

77

-

25,401

22,558

25,326

26.4

27.5

3.2

4.7

23.8

16.2

1.8

1.6

7.5

10.0

1.6

1.4

Rcom

Neutral

64

-

13,230

22,288

23,871

32.1

32.7

4.4

6.0

14.5

10.7

0.4

0.3

2.4

3.2

2.0

1.7

Telecom

zOthers
Bajaj Electricals

Buy

189

246

1,879

3,569

4,172

8.6

9.2

17.3

22.3

10.9

8.4

2.3

2.0

22.9

25.3

0.5

0.4

Abbott India

Accumulate

1,429

1,628

3,036

1,661

1,918

9.7

12.0

60.7

90.4

23.6

15.8

4.8

3.9

22.0

27.3

1.6

1.3

CRISIL

Neutral

1,075

-

7,543

982

1,136

34.3

34.3

34.3

40.0

31.3

26.9

14.2

11.3

50.9

46.9

7.2

6.1

Cera Sanitaryware

Accumulate

251

288

317

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

Force Motors

Buy

443

680

577

2,346

2,753

6.7

7.0

50.9

61.9

8.7

7.2

0.5

0.5

5.5

6.3

0.2

0.2

Finolex Cables

Buy

41

61

628

2,334

2,687

8.8

9.3

7.6

10.2

5.4

4.0

0.7

0.6

13.7

16.1

0.2

0.1

Goodyear India

Buy

319

374

735

1,511

1,692

7.9

9.0

31.5

41.3

10.1

7.7

2.0

1.7

21.2

23.5

0.3

0.2

Graphite India

Buy

88

124

1,724

2,158

2,406

18.1

18.9

12.4

14.0

7.1

6.3

1.0

0.9

14.0

14.3

0.9

0.8

HEG

Buy

204

242

815

1,746

1,946

16.5

17.7

22.5

32.9

9.1

6.2

0.9

0.8

10.4

14.2

1.1

1.0

Hitachi

Buy

114

160

263

857

968

6.9

8.4

10.2

16.0

11.3

7.2

1.4

1.2

12.9

17.8

0.4

0.3

Honeywell Automation

Accumulate

2,513

2,674

2,221

1,542

1,739

9.4

10.0

116.1

140.8

21.6

17.9

3.1

2.6

15.5

15.9

1.3

1.1

INEOS ABS India

Accumulate

716

777

1,259

900

1,011

10.2

11.5

35.6

45.7

20.1

15.7

2.9

2.5

15.4

17.2

1.2

1.0

ITD Cementation

Accumulate

221

236

255

1,535

1,842

11.1

11.1

27.3

38.3

8.1

5.8

0.6

0.6

7.9

10.2

0.6

0.6

Jyothy Laboratories

Buy

222

268

1,788

1,315

1,568

8.6

11.1

6.4

10.9

34.8

20.4

2.9

2.8

8.4

13.9

1.7

1.4

MCX

Buy

1,017

1,598

5,187

610

702

65.5

67.0

67.9

79.9

15.0

12.7

4.4

3.7

29.1

28.9

5.6

4.3

MRF

Buy

10,187

13,106

4,320

12,390

14,400

10.4

11.3 1,334.6 1,638.2

7.6

6.2

1.5

1.2

16.5

17.4

0.5

0.5

Greenply Industries

Buy

202

309

488

1,925

2,235

10.6

10.9

29.6

44.1

6.8

4.6

1.1

0.9

16.8

21.0

0.5

0.4

Page Industries

Neutral

2,859

-

3,188

887

1,108

18.3

18.6

95.0

120.9

30.1

23.6

15.7

12.7

57.4

59.5

3.6

2.8

Relaxo Footwears

Neutral

465

-

558

1,019

1,208

11.0

10.8

44.9

53.1

10.4

8.8

2.5

2.0

27.2

25.0

0.7

0.6

Sintex Industries

Buy

61

79

1,660

4,751

5,189

16.3

16.6

13.6

15.8

4.5

3.9

0.6

0.5

12.9

13.2

0.7

0.6

Siyaram Silk Mills

Buy

261

392

245

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

Buy

33

40

1,594

5,647

6,513

3.5

6.5

1.9

4.9

16.9

6.7

39.8

5.8

-

-

0.4

0.3

TVS Srichakra

Buy

314

462

241

1,612

1,827

9.5

9.8

72.3

92.5

4.4

3.4

1.3

1.0

33.1

32.1

0.4

0.3

TAJ GVK

Buy

59

108

372

300

319

35.8

36.2

7.9

9.1

7.5

6.5

1.0

0.9

13.9

14.4

1.5

1.3

www.angelbroking.com

Market Outlook
June 21, 2012

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

( Č)

Price ( Č)

( Č cr )

Sales ( Č cr )
FY13E

OPM(%)

EPS ( Č)

FY14E

FY13E

FY14E

FY13E

FY14E

PER(x)
FY13E

P/BV(x)

RoE(%)

EV/Sales(x)

FY14E

FY13E

FY14E

FY13E

FY14E

FY13E

FY14E

zOthers
Tata Sponge Iron

Buy

341

420

526

757

875

19.0

19.1

63.5

72.9

5.4

4.7

0.8

0.7

16.1

16.1

0.3

0.1

United Spirits

Accumulate

674

730

8,811

10,289

11,421

13.5

14.3

31.0

42.9

21.7

15.7

1.7

1.5

8.1

10.3

1.5

1.4

Vesuvius India

Accumulate

375

413

761

628

716

16.4

16.5

29.8

34.4

12.6

10.9

2.2

1.9

18.8

18.6

1.0

0.8

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on June 20, 2012

www.angelbroking.com

Market Outlook
June 21, 2012

www.angelbroking.com