Market Outlook 220812

Market Outlook
August 22, 2012
Dealers Diary
Domestic Indices
Indian markets are expected to open in the red, tracing cues from the opening
trades in the SGX Nifty and the negative openings in the Asian indices.
Asian stocks dropped after Japan reported a wider-than-expected trade deficit and
as investors await developments from a euro-area finance ministers meeting this
week to discuss details of the bailout package for Greece.
BSE Sensex
1.1
Nifty
1.0
54.7
5,421
MID CAP
0.2
14.9
6,173
0.5
34.4
6,650
BSE HC
(0.0)
(2.2)
7,336
The early strength on Wall Street was partly due to optimism about the financial
situation in Europe amid reports that the European Central Bank is considering
buying bonds from troubled eurozone countries such as Italy and Spain in order to
reduce borrowing costs. Optimism about potential progress on addressing the
Greek debt crisis also generated some buying interest, with Eurogroup chief JeanClaude Juncker due to meet with Greek Prime Minister Antonis Samaras in Athens
on Wednesday. Nonetheless, the markets were unable to sustain the early upward
move, as investors seemed somewhat reluctant to continue buying stocks following
recent strength.
BSE PSU
0.8
57.0
7,151
BANKEX
0.5
59.9 12,021
AUTO
1.2
113.2
METAL
1.1
109.6 10,437
OIL & GAS
0.5
38.9
8,539
BSE IT
1.8
98.6
5,710
(Pts)
(Close)
Indian shares rose sharply on Tuesday, with realty, banking and IT stocks leading a
late-session rally, helped by firm global cues and a stronger rupee on hopes of
central bank policy action
Markets Today
The trend deciding level for the day is 17,830 / 5,405 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 17,954 18,023 / 5,441 5,461 levels. However, if NIFTY trades below
17,830 / 5,405 levels for the first half-an-hour of trade then it may correct up to
17,761 17,636 / 5,385 5,349 levels.
Indices
SENSEX
NIFTY
Global Indices
(9.0)
3,067
0.6
33.2
5,858
Nikkei
(0.2)
(14.2)
9,157
Hang Seng
(0.0)
3.7
3,066
Shanghai Com
0.5
11.3
2,118
Chg (%)
(Pts)
(Close)
INFY
1.9
0.8
$43.5
WIT
2.1
0.2
$8.2
0.7
0.2
$35.2
(0.7)
(0.2)
$35.0
Indian ADRs
17,636
17,761
17,830
17,954
18,023
5,349
5,385
5,405
5,441
5,461
HDB
Advances / Declines
BSE
NSE
Advances
1,490
798
Declines
1,384
643
128
80
Unchanged
Volumes (` cr)
Refer detailed news analysis on the following page
Net Inflows (August 17, 2012)

` cr
Purch
Sales
Net
MTD
YTD
FII
2,174
1,850
323
3,539
58,369
474
440
34
(755)
(9,027)
FII Derivatives (August 21, 2012)

` cr
Purch
Sales
Net
Open Interest
Index Futures
1,453
1,189
264
17,332
Stock Futures
1,478
1,459
19
25,833
Gainers / Losers
Losers
Price (`) chg (%)
Hindustan Zinc
132
6.7
Canara Bank
345
(3.8)
United Spirits
983
6.5
Adani Ports
120
(3.0)
Reliance Cap
371
5.4
United Phos
112
(2.9)
Bajaj Finserv
937
4.5
Mah & Mah Fin.
761
(2.8)
Sterlite Inds
114
4.5
Piramal Health
506
(2.8)
www.angelbroking.com
(4.2) 20,100
0.1
IBN
Company
(68.1) 13,204
Straits Times
R2
Gainers
Price (`)
chg (%)
9,649
(0.3)
FTSE
R1
Company
194.2 17,885
NASDAQ
PIVOT
MFs
(Close)
(0.5)
S1
CPI inflation for July 2012 eases to 9.86%

Relief for Infosys as U.S. court dismisses visa case
L&T bags orders worth `2,044cr
L&T looking to sell equity in infrastructure projects
NMDC raises ore prices for July-September quarter
Sesa Goas coke plant commissioning delayed by three weeks
Chg (%)
(Pts)
Dow Jones
S2
News Analysis
SMALL CAP
Chg (%)
BSE
1,954
NSE
9,357
Market Outlook
August 22, 2012
CPI inflation for July 2012 eases to 9.86%

Consumer Price Index (CPI) inflation for the month of July 2012 eased marginally
to 9.86%, on a yoy basis, as compared to 9.93% in June 2012. Inflation in rural
areas stands at 9.76% during July 2012 as against 9.65% in the month of June
2012. Inflation for June 2012 was revised downwards to 9.93 from the provisional
estimate of 10.02% recorded earlier.
Inflation in urban areas is 10.1% in the July 2012 as compared to 10.44% in June
2012. Inflation in the Food and Beverages category stayed elevated above the
10% mark at 11.53% for the Combined Index as compared to 11.33% for rural
consumers and 12.15% for urban consumers. Inflation in Food and Beverages
was led by high vegetable prices followed by high prices in edible oils and pulses.
The Combined Index for Fuel and Light witnessed a deceleration to 7.36% in July
as compared 10.34 in June. Inflation in Housing as well as Clothing, Bedding
and Footwear recorded an increase of 10.65% and 11.02% respectively for the
month of July 2012. Inflation in the Miscellaneous Category comprising transport
and communication, education, recreation etc slipped to 7.62% in July 2012 as
compared to 8.16% in June 2012.
Headline inflation, as measured by the Wholesale Price Index (WPI), also eased to
6.87% in July 2012 as compared to 7.25% in June 2012 driven by a moderation
in food and fuel prices as well as a high base effect. However, we expect that the
moderation in inflation is a temporary phenomenon and upside risks to inflation
continue to persist due to factors like structural supply-side constraints in
agriculture, high MSP price increase for Kharif crops, deficiency of rainfall in most
parts of the country, the impending deregulation of diesel prices and increase in
prices of crude oil, retail petrol and electricity tariff during the month of August.
Therefore, we believe that the RBI is unlikely to cut interest rates in its Mid-Quarter
Review of the Monetary Policy in September 2012.
Relief for Infosys as U.S. court dismisses visa case

A U.S. court has dismissed whistleblower harassment charges against Infosys filed
by its employee - Jack Palmer, as no basis to support any of the allegations was
found. Reacting to the development, Infosys asserted that the company is built on
core values and is led by integrity and transparency.
In February 2011, Palmer had filed a lawsuit in an Alabama court accusing the
company of visa fraud saying he was asked by the firm to sign on documents
which said workers were heading to the U.S. to have meetings rather than to work
there, which he claimed was done to creatively overcome H1-B visa caps. He had
also alleged Indian workers in his team were paid substantially less than an
American would have made on the same job. After mediation efforts between
Palmer and Infosys failed, the case went to trial on August 20. Finding no basis to
support any of the charges filed by Palmer, the judge ordered that all other
pending motions are "denied as moot" and all pending objections are overruled as
moot, according to the court documents. We maintain Accumulate rating on the
stock with a target price of `2,530.
Market Outlook
August 22, 2012
L&T bags orders worth `2,044cr

Larsen & Toubro's (L&T) Construction arm has bagged orders worth `2,044cr
across various business segments in 2QFY2013. The Infrastructure IC of L&T
Construction bagged a major order worth `781cr from NTPC Hydro Limited for
the construction of 171MW Lata Tapovan Hydroelectric Power Project in
Uttarakhand. The project will be executed on an EPC basis. In the roads sector, the
Infrastructure IC bagged an EPC order of `645cr from GMR Infrastructure for
construction of significant stretches of the Kishangarh Udaipur Ahmedabad
Highway. The project is part of Phase V of the National Highway Development
Programme of National Highway Authority of India. The Buildings & Factories IC,
secured new order worth `360cr for the construction of residential towers. The
project involves the construction of 23 multistoried towers. The Power Transmission
& Distribution IC has secured a major order worth `258cr from UAE for the supply
and installation of 220/33 kV grid station and related 220 kV cabling and
overhead lines work.
At the CMP of `1,467, the stock is trading at PE of 14.9x FY2014E earnings, after
adjusting for investments, which is below the historical trading multiple for L&T. We
have used the sum-of-the-parts (SOTP) methodology to value the company to
capture all its business initiatives and investments/stakes in the different
businesses. Ascribing separate values to its parent business on a P/E basis and
investments in subsidiaries on P/E, P/BV and mcap basis, our target price works
out to `1,553. Owing to the recent surge in stock price we recommend
Accumulate on the stock.
L&T looking to sell equity in infrastructure projects

As per media reports, Larsen & Toubro (L&T) is looking to sell stake in some of its
port, road, power and metro rail projects. As returns on developmental projects
are typically back-ended hence L&T is looking to unlock value through churning of
mature assets within the portfolio and through equity partnership. L&T
Infrastructure Development Projects (L&T IDPL), a subsidiary of the parent company
that functions as the infrastructure development arm of the group has a diversified
portfolio with a mix of projects under development across various sectors. The
offloading of stake could be aimed at both reducing the portfolio size of the
company as well as generating funds that could be used as equity in new projects.
However, there is no clarity as of now on the projects where stakes would be
diluted nor the amount the company was hoping to mop up through the process.
At the CMP of `1,467, the stock is trading at PE of 14.9x FY2014E earnings, after
adjusting for investments, which is below the historical trading multiple for L&T. We
have used the sum-of-the-parts (SOTP) methodology to value the company to
capture all its business initiatives and investments/stakes in the different
businesses. Ascribing separate values to its parent business on a P/E basis and
investments in subsidiaries on P/E, P/BV and mcap basis, our target price works
out to `1,553. Owing to the recent surge in stock price we recommend
Accumulate on the stock.
Market Outlook
August 22, 2012
NMDC raises ore prices for July-September quarter

NMDC has hiked prices of fines by 8% and for lumps by 13% for July- September
quarter. The quantum of hike has surprised us positively. The price of lumps with
65% Fe content would be around `6,100/tonne and `3,000/tonne for
fines. During April-June quarter also NMDC had raised prices of iron ore by 10%.
The hike in price over the last two quarters is mainly due to shortage of good
quality iron ore in the domestic market. Thus, we raise our realization assumptions
for FY2013 and FY20014. We also raise our target price for NMDC from `200 to
`214 (valuing the stock at 5.0x FY2014 EV/EBITDA) in view of hike in price and
upgrade the stock from an Accumulate to a Buy.
Revision in estimates
(` cr)
Blended realization
Net sales
EBITDA
EBITDA margin (%)
PBT
Earlier estimates
Upgrade/(downgrade) (%)
FY13E
FY14E
FY13E
FY14E
4,120
4,160
4,408
4,450
7.0
7.0
12,093 13,338
12,934 14,266
7.0
7.0
9,476 10,530
10,275 11,421
8.4
8.5
78.4
78.9
11,519 12,784
PAT
Revised estimates
7,718
8,565
79.4
80.1
12,461 13,832
8,349
FY13E FY14E
109bp 110bp
8.2
8.2
9,267
8.2
8.2
PAT margin (%)
63.8
64.2
64.5
65.0
73bp
74bp
EPS
19.5
21.6
21.1
23.4
8.2
8.2
Source: Company, Angel Research
Sesa Goas coke plant commissioning delayed by three weeks

The commissioning of Sesa Goas metallurgical coke plants expansion facility at
Amona village has been delayed by three weeks after two high-capacity diesel
burners misfired. We do not expect material impact on Sesa Goas financials as
the plant is only delayed by three weeks. Sesa Goa operates a 280,000 tonne
metallurgical coke manufacturing plant since 1994 at Amona, Navelim and is
expected to increase capacity by another 280,000 by FY2013. We maintain our
Neutral rating on the stock.
Economic and Political News
BJP ruled states had opposed coal block auctions: Sibal

6 rain-deficit states seek `43,461cr relief
CBI may register multiple FIRs in coal scam
Not planning to deregulate diesel, LPG, kerosene: Government
Corporate News
Maruti reopens Manesar factory

L&T gets notice for non-payment of `160-cr excise duty
Sesa Goa's pig iron production capacity rises to 0.625 MTPA
State Bank of Mysore appoints Sharad Sharma as MD
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
Market Outlook
August 22, 2012
Global economic events release calendar

Date
Country
Event Description
Unit
Period
Bloomberg Data
Last Reported
Estimated
August 22, 2012
US
Existing home sales
Millions
Jul
4.37
4.51
August 23, 2012
US
Initial Jobless claims
Thousands
Aug 18
366.00
365.00
Germany
GDP nsa (YoY)
% Change
2Q F
0.50
0.50
Germany
PMI Services
Value
Aug A
50.30
50.10
Germany
Value
Aug A
43.00
43.40
Value
Aug A
(21.50)
(22.00)
US
PMI Manufacturing
Euro-Zone Consumer
Confidence
New home sales
Thousands
Jul
350.00
365.00
August 24, 2012
UK
GDP (YoY)
2Q P
(0.80)
(0.60)
August 28, 2012
US
Consumer Confidence
Aug
65.90
65.00
August 29, 2012
US
GDP Qoq (Annualised)
% Change
S.A./
1985=100
% Change
2Q S
1.50
1.70
August 30, 2012
Germany
Unemployment change (000's)
Thousands
Aug
7.00
--
August 31, 2012
India
Qtrly GDP YoY%
% Change
2Q
5.30
--
September 01, 2012
China
PMI Manufacturing
Value
Aug
50.10
--
September 03, 2012
India
Imports YoY%
% Change
Jul
(13.46)
--
India
Exports YoY%
% Change
Jul
(5.45)
--
UK
PMI Manufacturing
Value
Aug
45.40
--
Euro Zone
Euro-Zone GDP s.a. (QoQ)
% Change
2Q P
(0.20)
--
UK
BOE Announces rates
% Ratio
Sep 6
0.50
0.50
Euro Zone
ECB announces interest rates
Sep 6
0.75
--
UK
Industrial Production (YoY)
% Change
Jul
(4.30)
--
US
Change in Nonfarm payrolls
Thousands
Aug
163.00
--
US
Unnemployment rate
Aug
8.30
--
China
Industrial Production (YoY)
% Change
Aug
9.20
--
China
Consumer Price Index (YoY)
% Change
Aug
1.80
--
September 10, 2012
China
Exports YoY%
% Change
Aug
1.00
--
September 12, 2012
UK
Jobless claims change
% Change
Aug
(5.90)
--
India
Industrial Production YoY
% Change
Jul
(1.80)
--
US
Producer Price Index (mom)
% Change
Aug
0.30
--
US
FOMC rate decision
Sep 13
0.25
--
Euro Zone
Aug
2.40
--
% Change
Aug
6.87
--
US
Euro-Zone CPI (YoY)

Monthly Wholesale Prices
YoY%
Industrial Production
Aug
0.65
--
US
Consumer price index (mom)
% Change
Aug
--
--
India
RBI Repo rate
Sep 17
8.00
--
India
RBI Cash Reserve ratio
Sep 17
4.75
--
India
RBI Reverse Repo rate
Sep 17
7.00
--
Euro Zone
September 06, 2012
September 07, 2012
September 09, 2012
September 13, 2012
September 14, 2012
India
September 17, 2012
Source: Bloomberg, Angel Research
Market Strategy
August 22, 2012
Macro watch
Exhibit 1: Quarterly GDP trends
(%)
(%)
9.8
10.0
9.4
7.5
8.0
8.0
9.2
8.5
9.0
6.0
8.2
7.4
6.0
8.0
7.6
3.4
5.3
5.0
2.5
2.7
2.5
6.1
5.9
6.0
1.0
2.0
4QFY12
3QFY12
2QFY12
1QFY12
4QFY11
3QFY11
2QFY11
1QFY11
4QFY10
3QFY10
2QFY10
1QFY10
4QFY09
9.9
Mfg. PMI
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Services PMI
58.0
9.5
7.7
8.0
Jan-12
(5.0)
60.0
10.0
(1.8)
(2.8) (0.9)
(6.0)
Exhibit 4: Manufacturing and services PMI
(%)
9.8
Dec-11
(4.0)
Source: MOSPI, Angel Research
Exhibit 3: Monthly WPI inflation trends

12.0
Nov-11
Oct-11
Sep-11
(2.0)
3.0
Source: CSO, Angel Research
Aug-11
4.0
6.9
7.4
7.7
7.5
7.6
7.3
56.0
6.9
Source: MOSPI, Angel Research
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Sep-11
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Exhibit 5: Exports and imports growth trends

Exports yoy growth
(%)
Jul-11
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
48.0
Nov-11
50.0
0.0
Oct-11
2.0
Sep-11
52.0
Aug-11
4.0
Oct-11
54.0
6.0
Aug-11
10.0
4.3
3.7
4.0
6.7
Jul-11
7.0
Exhibit 2: IIP trends
Exhibit 6: Key policy rates
Imports yoy growth
75.0
(%)
9.00
60.0
8.00
45.0
7.00
30.0
Repo rate
Reverse Repo rate
CRR
6.00
15.0
5.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
4.00
Aug-11
(30.0)
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
(15.0)
Jul-11
0.0
Market Outlook
August 22, 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
129
2,499
1,466
1,686
14.8
14.8
7.0
8.1
18.4
15.9
3.9
3.3
22.6
22.5
1.8
1.5
United Phosphorus
Buy
112
170
5,156
8,421
9,263
16.5
16.5
15.0
17.0
7.5
6.6
1.1
1.0
15.6
15.5
0.8
0.7
Amara Raja Batteries
Neutral
391
3,343
2,844
3,213
15.5
15.5
31.5
35.3
12.4
11.1
3.2
2.5
28.7
25.4
1.1
0.9
Apollo Tyres
Neutral
95
4,793
13,412
15,041
11.0
11.0
11.5
14.2
8.3
6.7
1.4
1.2
18.7
19.4
0.5
0.4
Ashok Leyland
Buy
22
30
5,853
14,920
16,850
9.0
9.3
2.2
2.8
10.1
8.0
1.9
1.6
13.3
15.6
0.5
0.4
Automotive Axle
Buy
338
430
511
993
1,140
11.6
11.5
36.9
43.0
9.2
7.9
1.8
1.6
21.2
21.3
0.6
0.4
Bajaj Auto
Neutral
1,712
49,543
21,285
23,927
18.2
18.3
108.5
121.3
15.8
14.1
6.5
5.3
46.1
41.3
2.0
1.7
Bharat Forge
Buy
294
351
6,842
7,004
7,985
16.2
16.4
20.3
25.1
14.5
11.7
2.7
2.3
20.0
20.9
1.2
1.0
Bosch India
Neutral
8,760
27,505
9,034
10,286
17.8
18.3
373.6
435.8
23.5
20.1
4.8
4.0
20.5
19.8
2.7
2.3
CEAT
Buy
120
164
411
4,989
5,634
8.7
8.5
32.7
41.1
3.7
2.9
0.5
0.5
15.8
16.9
0.3
0.2
Exide Industries
Buy
129
149
10,952
5,899
6,771
16.0
17.0
7.4
9.1
17.5
14.1
3.1
2.7
19.0
20.2
1.5
1.3
FAG Bearings
Neutral
1,616
2,685
1,505
1,747
17.7
18.0
111.5
130.0
14.5
12.4
3.0
2.5
22.8
21.7
1.5
1.2
Hero Motocorp
Buy
1,919
2,428
38,316
26,097
29,963
15.0
15.3
139.5
151.8
13.8
12.6
6.5
4.9
54.6
44.3
1.2
1.0
JK Tyre
Buy
116
135
475
7,517
8,329
6.1
6.3
26.2
38.5
4.4
3.0
0.6
0.5
13.4
17.2
0.3
0.3
Auto & Auto Ancillary
Mahindra and Mahindra Accumulate

Maruti
Neutral
Motherson Sumi
Buy
Subros
Accumulate
Tata Motors
Buy
TVS Motor
Accumulate
784
879
48,139
36,536
41,650
11.6
11.5
49.3
54.9
15.9
14.3
3.3
2.8
22.1
21.1
1.1
0.9
1,185
34,239
42,887
49,079
5.5
6.6
66.8
87.6
17.7
13.5
2.0
1.8
12.1
14.1
0.6
0.5
185
216
7,231
23,342
26,366
7.8
8.2
13.3
18.0
13.9
10.3
3.3
2.6
26.2
28.4
0.5
0.4
31
34
185
1,230
1,378
8.8
8.6
4.5
5.7
6.8
5.4
0.7
0.6
9.8
11.8
0.4
0.4
246
292
65,602 195,096 219,428
12.8
12.8
39.0
43.9
6.3
5.6
1.8
1.4
32.6
28.2
0.4
0.3
40
43
1,891
7,545
8,301
6.2
6.1
4.9
5.4
8.1
7.4
1.4
1.3
18.8
18.2
0.2
0.2
Capital Goods
ABB*
Sell
770
498
16,324
8,760
10,023
5.5
7.5
12.4
20.7
62.0
37.1
5.9
5.3
10.1
15.2
1.8
1.6
BGR Energy
Neutral
274
1,980
3,669
4,561
11.0
11.0
24.7
29.6
11.1
9.3
1.6
1.5
15.3
16.7
0.6
BHEL
Neutral
232
56,699
47,801
43,757
19.4
19.8
25.7
23.9
9.0
9.7
1.9
1.7
22.7
18.3
1.1
0.9
Blue Star
Neutral
187
1,678
3,047
3,328
5.4
6.9
12.5
16.2
15.0
11.5
3.6
3.0
26.1
28.2
0.7
0.5
Crompton Greaves
Accumulate
120
128
7,679
12,691
14,096
7.0
8.5
6.5
9.1
18.4
13.1
2.0
1.8
11.1
14.2
0.6
0.6
Jyoti Structures
Buy
39
67
317
2,622
2,801
10.6
11.0
10.9
13.4
3.5
2.9
0.5
0.4
13.7
14.9
0.3
0.3
KEC International
Buy
60
69
1,530
6,858
7,431
7.5
8.3
9.0
11.5
6.6
5.2
1.2
1.0
26.9
27.2
0.3
0.3
LMW
Neutral
1,918
2,161
2,369
2,727
11.7
11.7
143.4
166.0
13.4
11.6
2.2
2.0
17.4
18.4
0.4
0.3
Thermax
Neutral
507
6,045
5,514
5,559
8.9
9.6
26.9
28.4
18.9
17.9
3.3
2.9
18.4
17.1
1.1
1.0
Market Outlook
August 22, 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
1,356
25,462
11,220
12,896
20.0
20.6
71.1
81.2
19.1
16.7
3.4
3.0
18.1
19.0
2.0
1.6
Ambuja Cements
Neutral
194
29,865
10,205
11,659
24.6
24.2
10.8
12.0
17.9
16.1
3.7
3.4
19.7
19.8
2.5
2.1
India Cements
Neutral
87
2,669
4,393
4,914
19.3
19.5
10.1
12.7
8.6
6.8
0.7
0.7
8.8
10.6
1.1
0.9
J K Lakshmi Cements
Neutral
96
1,179
1,964
2,278
19.5
20.4
16.3
17.9
5.9
5.4
0.9
0.8
14.7
14.6
0.8
1.1
Madras Cements
Neutral
180
4,285
3,608
3,928
27.4
26.9
15.6
18.1
11.5
10.0
1.8
1.6
16.8
16.9
1.8
1.5
Shree Cements
Neutral
3,282
11,435
5,519
6,293
24.5
23.7
156.6
225.3
21.0
14.6
5.2
4.5
22.3
26.0
1.8
1.4
UltraTech Cement
Neutral
1,717
47,074
20,167
22,752
21.7
23.0
90.8
107.8
18.9
15.9
18.9
15.9
1.9
1.8
259
304
1,363
2,014
2,293
22.4
22.4
22.6
26.7
11.5
9.7
1.2
1.1
11.4
11.9
2.5
2.8
Construction
Ashoka Buildcon
Buy
Consolidated Co
Neutral
15
273
2,262
2,522
6.7
7.5
1.5
2.7
10.0
5.6
0.4
0.4
4.4
7.5
0.4
0.4
Hind. Const.
Neutral
17
1,028
4,239
4,522
9.9
11.2
(2.3)
(1.0)
(7.5)
(17.6)
0.9
1.1
(11.4)
(5.6)
1.2
1.2
IRB Infra
Buy
126
166
4,176
3,964
4,582
42.3
40.2
15.5
16.9
8.1
7.4
1.3
1.1
16.6
15.8
2.6
2.5
ITNL
Buy
170
232
3,304
6,840
7,767
26.4
26.1
24.4
28.4
7.0
6.0
1.1
0.9
16.0
16.2
2.7
2.8
IVRCL Infra
Buy
44
61
1,187
5,510
6,722
8.8
9.0
2.5
4.6
17.6
9.7
0.6
0.6
3.4
5.8
0.7
0.6
Jaiprakash Asso.
Buy
77
91
16,427
15,259
17,502
25.7
24.7
4.2
5.0
18.2
15.4
1.5
1.4
8.5
9.3
2.4
2.1
Larsen & Toubro
Accumulate
1,467
1,553
90,031
60,474
69,091
12.1
11.5
79.7
85.4
18.4
17.2
3.1
2.7
16.3
15.1
1.6
1.5
Madhucon Proj
Buy
34
56
253
2,206
2,502
10.7
10.7
4.6
4.7
7.4
7.3
0.4
0.4
5.2
5.0
0.7
0.7
Nagarjuna Const.
Accumulate
41
45
1,047
5,804
6,513
8.0
8.6
3.0
3.5
13.4
11.7
0.4
0.4
3.2
3.6
0.6
0.7
Patel Engg.
Neutral
79
552
3,609
3,836
13.1
13.1
14.0
14.6
5.6
5.4
0.3
0.3
6.3
6.1
1.0
1.0
Punj Lloyd
Neutral
52
1,710
11,892
13,116
8.9
8.9
1.7
3.1
30.4
16.7
0.6
0.6
1.9
3.4
0.6
0.5
Sadbhav Engg.
Buy
136
182
2,047
2,789
3,147
10.6
10.7
8.4
10.4
16.1
13.1
2.2
1.9
15.0
15.6
0.9
0.8
Simplex Infra
Buy
207
265
1,024
6,732
7,837
8.1
8.4
23.5
29.4
8.8
7.0
0.8
0.7
9.6
11.0
0.5
0.4
Allahabad Bank
Neutral
128
6,378
7,233
8,579
3.1
3.3
40.5
40.9
3.2
3.1
0.6
0.5
19.4
17.0
Andhra Bank
Neutral
98
5,501
4,959
5,787
3.1
3.1
22.7
24.5
4.3
4.0
0.7
0.6
16.0
15.3
Axis Bank
Buy
1,111
1,373
46,055
15,961
19,583
3.1
3.2
117.3
143.1
9.5
7.8
1.8
1.5
20.1
20.8
Bank of Baroda
Buy
636
829
24,918
15,830
19,300
2.6
2.7
118.9
147.1
5.4
4.3
0.8
0.7
16.7
18.0
Bank of India
Buy
278
323
15,928
13,159
15,851
2.4
2.5
61.1
71.1
4.6
3.9
0.8
0.7
16.6
17.0
Bank of Maharashtra
Neutral
Canara Bank
Buy
Central Bank
Neutral
Financials
46
2,686
3,471
3,889
3.1
3.1
9.0
11.5
5.0
4.0
0.7
0.6
13.7
15.5
345
421
15,264
11,334
13,629
2.2
2.3
75.4
85.1
4.6
4.1
0.7
0.6
15.2
15.3
69
5,076
7,181
8,365
2.5
2.7
16.3
21.8
4.2
3.2
0.7
0.6
12.7
15.1
Market Outlook
August 22, 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
389
436
5,758
5,067
5,998
2.1
2.3
105.6
111.0
3.7
3.5
0.6
0.6
17.6
16.3
91
107
3,168
3,177
3,595
2.8
2.8
25.2
25.4
3.6
3.6
0.6
0.6
18.9
16.4
Financials
Corporation Bank
Accumulate
Dena Bank
Buy
Federal Bank
Neutral
438
7,485
2,697
3,171
3.4
3.4
47.9
58.0
9.2
7.6
1.2
1.1
13.6
14.7
HDFC
Reduce
733
671
111,234
7,340
8,805
3.5
3.5
31.5
37.8
23.3
19.4
4.7
4.1
34.8
32.2
HDFC Bank
Neutral
597
140,690
21,936
27,454
4.4
4.4
28.7
36.0
20.8
16.6
4.0
3.4
20.7
22.0
ICICI Bank
Buy
974
1,169
111,956
22,356
27,157
2.9
3.0
68.7
82.0
14.2
11.9
1.7
1.6
14.2
15.5
IDBI Bank
Buy
88
101
11,218
7,952
9,876
1.9
2.2
18.5
23.6
4.8
3.7
0.6
0.5
12.8
14.7
Indian Bank
Accumulate
170
190
7,306
6,294
7,191
3.4
3.4
40.6
44.9
4.2
3.8
0.7
0.6
18.1
17.4
IOB
Accumulate
73
80
5,778
7,473
8,732
2.5
2.5
16.7
22.6
4.3
3.2
0.5
0.5
11.8
14.4
J & K Bank
Accumulate
930
1,026
4,507
2,625
2,921
3.6
3.5
194.4
191.9
4.8
4.9
0.9
0.8
21.2
18.0
LIC Housing Finance
Accumulate
257
279
12,945
1,867
2,338
2.4
2.4
21.1
28.5
12.2
9.0
2.0
1.7
17.5
20.4
Oriental Bank
Buy
234
278
6,830
6,518
7,458
2.8
2.9
61.3
65.1
3.8
3.6
0.6
0.5
15.2
14.3
Punjab Natl.Bank
Buy
720
950
24,409
20,116
23,625
3.3
3.4
152.8
173.9
4.7
4.1
0.9
0.7
18.2
18.0
South Ind.Bank
Buy
23
27
2,606
1,514
1,717
2.8
2.7
4.0
4.2
5.8
5.5
1.1
1.0
20.5
18.5
St Bk of India
Buy
1,914
2,270
128,428
64,470
75,940
3.5
3.5
224.4
258.7
8.5
7.4
1.4
1.2
17.6
17.8
Syndicate Bank
Buy
97
119
5,857
6,840
7,996
2.9
3.0
25.7
29.2
3.8
3.3
0.6
0.6
17.9
17.8
UCO Bank
Neutral
68
4,550
5,488
6,338
2.4
2.5
17.3
17.7
4.0
3.9
0.8
0.7
17.0
15.3
Union Bank
Buy
166
230
9,114
10,299
12,227
2.9
3.0
42.1
49.3
3.9
3.4
0.7
0.6
16.7
17.1
United Bank
Buy
54
79
1,957
3,634
4,194
2.8
2.9
18.2
23.0
3.0
2.4
0.4
0.4
15.0
16.7
Vijaya Bank
Neutral
52
2,574
2,579
3,028
2.1
2.3
8.8
11.6
5.9
4.5
0.7
0.6
11.1
13.3
Yes Bank
Buy
358
453
12,717
3,255
4,228
2.8
3.0
34.2
42.7
10.5
8.4
2.2
1.8
23.3
23.8
3,693
35,428
11,198
13,184
16.3
16.3
121.0
144.8
30.5
25.5
10.2
8.1
37.4
35.3
3.1
2.6
474
584
5,664
5,835
6,824
5.7
6.0
20.7
25.4
22.9
18.7
9.0
6.9
43.1
41.9
0.9
0.7
1,169
15,900
3,018
3,429
20.9
22.3
34.6
41.0
33.8
28.5
31.1
23.6
99.5
94.1
5.1
4.5
FMCG
Asian Paints
Neutral
Britannia
Buy
Colgate
Neutral
Dabur India
Neutral
119
20,765
6,124
7,030
17.0
16.8
4.5
5.2
26.7
23.0
11.0
8.7
43.2
41.5
3.4
2.9
GlaxoSmith Con*
Neutral
2,812
11,825
3,124
3,663
17.1
17.6
104.5
123.8
26.9
22.7
8.4
6.7
34.4
32.8
3.4
2.9
Godrej Consumer
Neutral
665
22,618
6,097
7,233
18.4
18.6
21.9
26.5
30.4
25.1
6.7
5.6
25.5
25.4
3.9
3.2
HUL
Neutral
514
111,013
25,350
28,974
13.9
13.9
14.3
16.5
36.0
31.2
21.4
16.5
70.9
59.8
4.2
3.6
ITC
Neutral
261
204,521
29,513
33,885
35.4
35.8
9.3
10.8
28.1
24.2
9.3
7.8
35.6
35.0
6.6
5.7
Market Outlook
August 22, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
( )
Price ( )
( cr )
FY13E
OPM(%)
EPS ( )
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
192
12,362
4,840
5,643
13.1
13.1
6.8
8.5
28.3
22.7
7.8
5.9
31.4
29.7
2.6
2.1
Nestle*
Neutral
4,591
44,264
8,610
10,174
20.9
21.2
114.8
139.8
40.0
32.8
24.1
16.8
71.2
60.3
5.2
4.3
Tata Global
Neutral
133
8,219
7,207
7,927
9.7
10.0
6.6
7.9
20.0
16.9
2.0
2.0
8.6
9.5
1.0
0.9
HCL Tech
Neutral
558
38,689
24,400
27,049
18.6
17.5
41.1
45.0
13.6
12.4
3.1
2.6
22.7
21.1
1.5
1.3
Hexaware
Accumulate
121
133
3,577
1,947
2,161
22.0
21.4
11.4
12.1
10.6
10.0
2.7
2.3
26.4
24.0
1.6
1.3
Infosys
Accumulate
2,407
2,530
138,220
39,151
41,743
31.6
31.9
161.9
174.5
14.9
13.8
3.5
3.1
23.8
22.1
2.9
2.6
Infotech Enterprises
Neutral
179
1,995
1,889
2,065
18.0
17.5
18.0
19.7
9.9
9.1
1.4
1.3
14.5
13.7
0.7
0.6
KPIT Cummins
Neutral
135
2,415
2,149
2,331
15.6
14.8
10.7
11.2
12.6
12.0
2.6
2.2
20.6
17.8
1.1
1.0
Mahindra Satyam
Neutral
100
11,733
7,574
8,062
19.6
18.4
9.5
9.7
10.5
10.3
1.7
1.5
16.1
14.1
1.1
1.0
Mindtree
Accumulate
650
708
2,648
2,341
2,513
18.6
17.1
66.5
70.8
9.8
9.2
2.2
1.8
22.3
19.3
1.0
0.8
Mphasis
Neutral
388
8,144
5,704
6,009
18.6
17.7
36.0
37.1
10.8
10.5
1.5
1.3
14.0
12.6
1.0
0.8
NIIT
Buy
35
40
572
1,162
1,304
14.8
15.1
7.1
8.8
4.9
3.9
0.8
0.7
16.7
18.4
0.3
0.2
Persistent
Neutral
388
1,550
1,193
1,278
25.6
24.3
42.6
44.3
9.1
8.8
1.6
1.4
17.2
15.5
0.9
0.8
TCS
Neutral
1,298
254,126
61,046
67,507
29.3
29.1
67.3
72.4
19.3
17.9
6.2
5.1
31.9
28.3
4.0
3.5
Tech Mahindra
Neutral
869
11,090
6,148
6,434
18.4
17.6
91.8
97.6
9.5
8.9
2.2
1.8
23.4
20.2
1.8
1.6
Wipro
Buy
355
420
87,472
43,492
48,332
19.4
19.3
25.1
28.0
14.2
12.7
2.6
2.3
18.6
18.0
1.7
1.4
D B Corp
Buy
187
236
3,425
1,597
1,785
22.9
24.2
11.1
13.9
16.8
13.4
3.2
2.8
20.2
22.1
2.1
1.8
HT Media
Buy
88
113
2,068
2,111
2,263
15.2
15.2
7.3
8.1
12.0
10.8
1.3
1.2
11.2
11.2
0.5
0.4
Jagran Prakashan
Buy
92
112
2,911
1,506
1,687
22.5
23.2
6.2
7.0
14.8
13.1
3.6
3.2
25.0
25.7
2.1
1.9
PVR
Neutral
182
472
625
732
17.4
17.1
13.3
15.6
13.7
11.6
1.5
1.3
13.2
13.8
1.2
1.0
Sun TV Network
Neutral
302
11,899
1,981
2,239
77.0
76.7
18.6
21.3
16.3
14.2
4.1
3.6
27.1
27.5
5.5
4.7
Bhushan Steel
Neutral
471
9,995
11,979
14,584
31.6
31.0
49.2
61.4
9.6
7.7
1.3
1.1
14.1
15.2
2.8
2.4
Coal India
Accumulate
352
385
222,368
69,808
75,550
27.4
27.4
26.0
28.3
13.5
12.5
3.9
3.2
32.5
28.1
2.2
1.9
Electrosteel Castings
Buy
19
22
657
1,984
2,074
11.2
12.6
2.0
2.7
9.3
7.0
0.4
0.1
4.2
5.5
0.5
0.5
Hind. Zinc
Accumulate
132
144
55,964
12,446
13,538
52.3
52.9
14.3
15.5
9.3
8.5
1.8
1.5
20.5
18.9
2.6
2.0
Hindalco
Neutral
112
21,501
83,212
91,057
9.0
9.9
13.7
18.1
8.2
6.2
0.6
0.6
7.9
9.6
0.5
0.5
JSW Steel
Neutral
733
16,361
38,740
41,459
17.3
17.0
79.9
89.4
9.2
8.2
0.9
0.8
10.4
10.6
0.9
0.8
MOIL
Accumulate
252
271
4,228
918
993
50.7
50.9
24.5
26.1
10.3
9.7
1.6
1.4
16.0
15.5
2.3
2.0
Monnet Ispat
Buy
296
447
1,903
3,115
3,748
22.1
25.1
59.1
66.8
5.0
4.4
0.7
0.6
15.6
15.3
1.4
1.0
IT
Media
Metals & Mining
Market Outlook
August 22, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
Sales ( cr )
FY13E
OPM(%)
EPS ( )
FY14E
FY13E
FY14E
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
53
48
13,543
7,401
7,841
16.7
19.2
3.4
4.1
15.4
12.8
1.1
1.1
7.4
8.4
1.4
1.3
181
200
71,821
12,093
13,338
78.4
79.0
19.5
21.6
9.3
8.4
2.3
1.9
27.6
25.0
4.0
3.4
SAIL
Sesa Goa
Neutral
85
35,027
47,252
60,351
14.2
14.8
9.6
11.7
8.9
7.2
0.8
0.7
9.4
10.6
1.2
1.0
Neutral
194
16,830
7,704
8,034
33.6
34.6
42.0
43.1
4.6
4.5
0.9
0.8
22.3
19.2
0.4
0.1
Sterlite Inds
Neutral
114
38,210
41,680
45,382
24.2
23.2
16.3
16.9
7.0
6.7
0.8
0.7
11.3
10.7
0.6
0.4
Tata Steel
Buy
392
499
38,091 143,088 148,011
10.9
12.1
53.9
66.0
7.3
5.9
0.9
0.8
12.2
13.4
0.6
0.6
Sarda
Accumulate
130
148
467
1,251
1,321
22.7
23.4
33.0
37.1
3.9
3.5
0.6
0.5
15.1
14.8
0.7
0.7
Prakash Industries
Godawari Power and
Ispat
Oil & Gas
Buy
60
73
803
2,694
2,906
14.6
16.6
17.9
22.6
3.3
2.6
0.4
0.3
11.4
12.8
0.5
0.4
Buy
124
161
392
2,341
2,425
15.6
17.3
33.8
43.8
3.7
2.8
0.5
0.4
13.2
14.4
0.5
0.5
Cairn India
Accumulate
332
380
63,247
16,605
17,258
75.4
71.7
57.0
54.9
5.8
6.0
1.1
0.9
20.2
16.3
2.8
2.2
GAIL
Neutral
370
46,915
50,176
55,815
15.5
15.8
35.4
36.5
10.5
10.1
1.8
1.6
18.9
17.0
0.1
ONGC
Accumulate
287
312
245,371 147,139 154,821
33.9
33.7
30.7
32.3
9.4
8.9
1.6
1.5
18.3
17.2
1.4
1.3
Reliance Industries
Neutral
814
266,663 362,700 380,031
Gujarat Gas
Neutral
302
Indraprastha Gas
Neutral
256
3,587
Petronet LNG
Gujarat State Petronet
Ltd.
Pharmaceuticals
Buy
150
176
11,250
73
4,096
Alembic Pharma
Buy
65
91
Aurobindo Pharma
Buy
105
156
Aventis*
Neutral
2,202
Cadila Healthcare
Accumulate
Cipla
Accumulate
Dr Reddy's
Neutral
Dishman Pharma
Neutral
GSK Pharma*
Neutral
Indoco Remedies
Buy
60
92
553
Ipca labs
Buy
399
475
5,032
Lupin
Accumulate
572
647
25,543
Orchid Chemicals
Buy
109
178
770
Neutral
7.9
8.0
61.5
64.3
13.3
12.7
1.3
1.2
10.3
9.9
0.7
0.7
3,267
16.1
11.5
21.2
19.2
14.2
15.8
4.9
4.2
33.4
28.7
1.5
1.1
3,040
3,135
24.3
26.7
24.8
27.9
10.3
9.2
2.4
2.0
25.5
23.6
1.2
1.0
22,696
29,145
8.1
6.6
14.1
14.2
10.6
10.6
3.2
2.6
34.1
26.9
0.6
0.4
1,041
939
91.8
91.9
8.5
7.4
8.6
9.8
1.5
1.3
18.1
14.0
4.8
5.3
1,226
1,624
1,855
14.2
15.6
6.6
9.1
9.9
7.2
2.4
1.9
27.9
29.2
0.9
0.8
3,050
5,243
5,767
14.6
14.6
11.8
12.6
8.9
8.3
0.9
0.4
17.9
16.4
1.1
0.9
5,070
1,482
1,682
15.5
15.5
95.0
104.0
23.2
21.2
4.1
3.2
18.6
17.0
3.2
2.8
862
953
17,647
6,148
7,386
18.6
19.6
36.0
46.1
23.9
18.7
5.6
4.5
25.8
26.8
3.1
2.5
360
399
28,897
8,031
9,130
23.4
22.4
18.4
20.0
19.6
18.0
3.2
2.8
17.8
16.6
3.4
2.9
1,659
28,161
10,696
11,662
20.7
21.0
83.7
92.9
19.8
17.9
4.1
3.4
22.4
21.0
2.9
2.6
93
749
1,280
1,536
17.8
17.8
9.2
11.3
10.1
8.2
0.8
0.7
7.7
8.5
1.2
1.0
2,086
17,670
2,651
2,993
31.7
31.2
76.0
82.4
27.5
25.3
7.9
7.1
20.1
26.3
5.9
5.1
685
837
15.2
15.2
7.4
8.9
8.1
6.7
1.2
1.1
16.4
17.0
1.0
0.8
2,850
3,474
20.7
20.7
29.2
36.6
13.7
10.9
3.2
2.6
26.1
26.1
1.9
1.6
8,426
10,082
19.7
20.0
27.4
32.4
20.9
17.6
5.1
4.1
26.0
24.7
3.1
2.5
2,117
2,434
17.7
17.7
16.7
22.2
6.5
4.9
0.6
0.5
9.5
11.5
1.0
0.8
3,879
2,472
Market Outlook
August 22, 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
Pharmaceuticals
Ranbaxy*
Neutral
513
21,677
12,046
11,980
18.0
15.8
35.7
29.8
14.4
17.2
5.6
4.5
39.1
28.9
1.8
1.8
Sun Pharma
Neutral
667
68,946
9,752
12,134
41.6
41.6
26.0
28.2
25.7
23.7
4.8
4.1
20.3
18.8
6.3
4.9
CESC
Accumulate
317
342
3,954
5,218
5,644
24.2
23.8
44.6
47.6
7.1
6.7
0.7
0.7
11.0
10.6
1.1
1.1
GIPCL
Buy
NTPC
Neutral
Power
67
77
1,007
1,557
1,573
29.3
28.7
10.8
11.0
6.2
6.1
0.6
0.6
10.8
10.2
1.1
0.9
174
143,306
74,111
85,789
23.2
23.6
12.4
14.0
14.1
12.4
1.8
1.6
13.0
13.5
2.7
2.4
Real Estate
Anant Raj
Buy
DLF
Neutral
47
78
1,387
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
216
36,686
9,878
12,033
44.7
46.1
9.6
13.4
22.6
16.1
1.4
1.4
6.4
8.7
6.2
HDIL
Buy
5.1
83
115
3,461
2,441
3,344
55.1
48.2
22.7
26.6
3.6
3.1
0.3
0.3
8.8
9.4
3.3
MLIFE
2.5
Accumulate
356
396
1,454
813
901
26.2
26.6
32.0
37.1
11.1
9.6
1.2
1.1
10.4
11.0
2.2
1.9
Bharti Airtel
Neutral
259
98,223
79,542
87,535
30.9
32.2
10.3
15.0
25.1
17.2
1.8
1.7
7.2
9.6
1.9
1.6
Idea Cellular
Neutral
76
25,089
22,988
25,333
26.4
26.9
3.5
4.9
21.9
15.5
1.8
1.6
8.1
10.2
1.5
1.3
Rcom
Neutral
57
11,755
21,553
22,494
31.0
30.7
3.5
4.5
16.4
12.8
0.3
0.3
1.9
2.4
2.1
1.8
Abbott India
Neutral
1,584
3,366
1,602
1,833
10.4
11.8
54.7
71.7
29.0
22.1
5.5
4.7
20.0
22.7
1.9
1.6
Bajaj Electricals
Buy
178
234
1,770
3,569
4,172
8.1
8.8
16.3
21.3
10.9
8.3
2.2
1.9
21.7
24.6
0.5
0.4
Cera Sanitaryware
Neutral
364
460
396
470
16.7
16.5
28.0
33.2
13.0
11.0
2.7
2.2
23.8
23.1
1.3
1.1
Cravatex
Buy
451
785
117
302
364
5.7
6.0
49.0
71.0
9.2
6.4
2.7
2.0
29.8
30.7
0.5
0.4
CRISIL
Neutral
919
6,446
982
1,136
34.3
34.3
34.3
40.0
26.8
23.0
12.1
9.7
50.9
46.9
6.1
5.2
Finolex Cables
Buy
39
61
591
2,334
2,687
8.8
9.3
7.6
10.2
5.1
3.8
0.7
0.6
13.7
16.1
0.2
0.1
Force Motors
Buy
437
591
569
2,214
2,765
4.5
5.4
39.5
73.9
11.1
5.9
0.5
0.5
4.4
7.6
0.1
0.1
Goodyear India
Accumulate
347
370
799
1,543
1,646
8.1
9.2
32.3
39.4
10.7
8.8
2.2
1.8
21.7
22.4
0.3
0.3
Graphite India
Buy
82
113
1,598
2,158
2,406
18.1
18.9
12.4
14.0
6.6
5.8
0.9
0.8
14.0
14.3
0.9
0.7
Greenply Industries
Buy
190
309
459
1,925
2,235
10.6
10.9
29.6
44.1
6.4
4.3
1.1
0.9
16.8
21.0
0.5
0.4
HEG
Accumulate
204
229
816
1,586
1,685
17.9
18.1
16.1
25.7
12.7
7.9
1.0
0.9
7.5
11.6
1.2
1.1
Hitachi
Accumulate
115
130
263
868
977
3.9
6.6
2.7
10.9
41.8
10.6
1.5
1.4
3.7
13.6
0.4
0.3
Honeywell Automation
Buy
2,449
2,842
2,164
1,847
2,162
4.3
7.3
61.0
120.0
40.1
20.4
3.2
2.7
9.3
16.3
1.1
0.9
INEOS ABS India
Accumulate
670
744
1,179
1,056
1,081
8.1
10.6
33.8
46.5
19.8
14.4
2.7
2.3
14.7
17.5
1.1
1.0
ITD Cementation
Accumulate
225
241
259
1,451
1,669
12.3
12.4
32.4
41.5
7.0
5.4
0.6
0.6
9.4
10.9
0.6
0.6
Jyothy Laboratories
Accumulate
134
145
2,166
1,248
1,468
9.8
10.4
5.9
7.2
22.7
18.7
3.3
3.0
15.0
16.6
2.1
1.7
MCX
Buy
1,166
1,598
5,946
610
702
65.5
67.0
67.9
79.9
17.2
14.6
5.0
4.2
29.1
28.9
6.8
5.4
Telecom
zOthers
Market Outlook
August 22, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
11,075
12,884
4,697
11,804
12,727
10.4
10.5 1,289.9 1,431.3
8.6
7.7
3,183
3,551
887
1,108
18.3
18.6
95.0
120.9
33.5
26.3
FY14E
FY13E
PER(x)
FY14E
FY13E
P/BV(x)
FY14E
FY13E
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
1.7
1.4
21.3
19.4
0.5
0.5
17.5
14.2
57.4
59.5
4.1
3.2
zOthers
MRF
Buy
Page Industries
Neutral
Relaxo Footwears
Buy
587
684
704
1,019
1,208
12.3
13.0
51.0
68.4
11.5
8.6
3.0
2.3
30.3
30.2
0.9
0.7
Sintex Industries
Buy
61
79
1,676
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
301
392
282
1,042
1,173
12.4
12.5
66.3
78.5
4.6
3.8
0.9
0.7
21.1
20.8
0.5
0.5
S. Kumars Nationwide
Buy
24
45
712
7,279
8,290
21.0
21.0
15.0
17.6
1.6
1.4
0.2
0.2
13.7
13.9
0.7
0.6
SpiceJet
Buy
35
43
1,695
5,720
6,599
5.3
6.8
3.6
5.4
9.7
6.5
14.1
4.5
0.4
0.4
TAJ GVK
Buy
65
108
408
300
319
35.8
36.2
7.9
9.1
8.2
7.2
1.1
1.0
13.9
14.4
1.7
1.4
Tata Sponge Iron
Buy
324
424
499
787
837
16.2
17.5
58.5
66.9
5.5
4.8
0.8
0.7
14.9
15.1
0.3
0.2
TVS Srichakra
Accumulate
317
335
243
1,476
1,643
7.1
8.2
24.7
42.8
12.8
7.4
1.6
1.3
16.6
24.8
0.4
0.3
United Spirits
Neutral
983
12,851
10,289
11,421
13.5
14.3
31.0
42.9
31.7
22.9
2.5
2.2
8.1
10.3
1.9
1.7
Vesuvius India
Neutral
356
722
560
611
16.1
17.0
24.7
28.8
14.4
12.4
2.2
1.9
15.8
16.2
1.2
1.1
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 21, 2012
Market Outlook
August 22, 2012

Market Outlook 220812

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Market Outlook 220812

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Market Outlook

August 22, 2012

OIL & GAS

Refer detailed news analysis on the following page

Net Inflows (August 17, 2012)

FII Derivatives (August 21, 2012)

Mah & Mah Fin.

CPI inflation for July 2012 eases to 9.86%

CPI inflation for July 2012 eases to 9.86%

Relief for Infosys as U.S. court dismisses visa case

L&T bags orders worth `2,044cr

L&T looking to sell equity in infrastructure projects

NMDC raises ore prices for July-September quarter

PAT margin (%)

Source: Company, Angel Research

Sesa Goas coke plant commissioning delayed by three weeks

Economic and Political News

BJP ruled states had opposed coal block auctions: Sibal

Maruti reopens Manesar factory

Global economic events release calendar

August 22, 2012

Existing home sales

August 23, 2012

Initial Jobless claims

GDP nsa (YoY)

August 24, 2012

August 28, 2012

August 29, 2012

GDP Qoq (Annualised)

August 30, 2012

Unemployment change (000's)

August 31, 2012

Qtrly GDP YoY%

September 01, 2012

September 03, 2012

Euro-Zone GDP s.a. (QoQ)

BOE Announces rates

ECB announces interest rates

Industrial Production (YoY)

Change in Nonfarm payrolls

Industrial Production (YoY)

Consumer Price Index (YoY)

September 10, 2012

September 12, 2012

Jobless claims change

Industrial Production YoY

Producer Price Index (mom)

FOMC rate decision

Euro-Zone CPI (YoY)

Consumer price index (mom)

RBI Repo rate

RBI Cash Reserve ratio

RBI Reverse Repo rate

September 06, 2012

September 07, 2012

September 09, 2012

September 13, 2012

September 14, 2012

September 17, 2012

Source: Bloomberg, Angel Research

Exhibit 4: Manufacturing and services PMI

Source: MOSPI, Angel Research

Exhibit 3: Monthly WPI inflation trends