edited market outlook 300512breport.myiris.com/abl/aurpharm_20120530.pdf · title: microsoft word -...

Market Outlook May 30, 2012

www.angelbroking.com


Dealer’s Diary

The domestic markets are expected to open in red tracing negative opening in most of the Asian bourses and the SGX Nifty, as reports say that China has ruled out any broader stimulus to boost its economy and Spain rating has been downgraded.

Globally, US markets closed notably higher on Tuesday after witnessing volatility in the morning trade, which was on account of some mixed news out of Europe. Most of the European markets also largely finished in positive territory on Tuesday. Spanish markets, however remained under pressure due to concerns over the country's banks. Expectations for further stimulus from China provided investors with optimism, globally.

Meanwhile, Indian benchmark indices gave up most of their early gains on Tuesday to close flattish, as a little bit of volatility in European markets on concerns over the outlook for Spanish banks and the slide in rupee following three days of gains prompted investors to pare their long positions.

Markets Today The trend deciding level for the day is 16,464 / 4,997 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16,519 – 16,599 / 5,013 – 5,035 levels. However, if NIFTY trades below 16,464 / 4,997 levels for the first half-an-hour of trade then it may correct up to 16,384 – 16,330 / 4,975 – 4,959 levels.

Indices S2 S1 PIVOT R1 R2

SENSEX 16,330 16,384 16,464 16,519 16,599

NIFTY 4,959 4,975 4,997 5,013 5,035

News Analysis

IRB emerges L1 for road projects worth `2,400cr 4QFY2012 Result Reviews – ONGC, Tata Motors, Sun Pharma, SAIL, IPCA

Labs, Aurobindo Pharma, NCC 4QFY2012 Result Previews – GAIL, MM, DLF, Colgate, JP Associates, HDIL,

Anant Raj, Simplex Infra, GIPCL Refer detailed news analysis on the following page

Net Inflows (May 28, 2012) ` cr Purch Sales Net MTD YTD

FII 1,234 1,055 179 (1,161) 42,300

MFs 397 235 162 352 (5749)

FII Derivatives (May 29, 2012) ` cr Purch Sales Net Open Interest

Index Futures 3,229 3,012 216 14,346

Stock Futures 6,670 6,344 327 23,982

Gainers / Losers Gainers Losers

Company Price (`) chg (%) Company Price (`) chg (%)

Gujarat Mnrl 179 4.1 Aurobindo Phar 111 (5.6)

GVK Power 12 3.8 Voltas 103 (3.6)

HDIL 67 3.7 IVRCL Ltd 42 (3.1)

Pantaloon Retl 158 3.6 Sintex Inds 55 (3.0)

Glaxosmithkl Cons 2,694 3.5 Piramal Health 435 (2.7)

Domestic Indices Chg (%) (Pts) (Close)

BSE Sensex 0.1 21.7 16,439

Nifty 0.1 4.5 4,990

MID CAP (0.1) (8.3) 5,964

SMALL CAP 0.2 10.9 6,384

BSE HC (0.3) (20.0) 6,657

BSE PSU 0.5 33.5 6,832

BANKEX 0.1 15.1 11,178

AUTO 0.3 24.6 9,424

METAL 0.4 36.0 10,224

OIL & GAS 0.3 20.8 7,613

BSE IT 1.2 66.0 5,625

Global Indices Chg (%) (Pts) (Close)

Dow Jones 1.0 125.9 12,581

NASDAQ 1.2 33.5 2,871

FTSE 0.7 34.8 5,391

Nikkei 0.7 63.9 8,657

Hang Seng 1.4 254.5 19,055

Straits Times 0.5 14.6 2,802

Shanghai Com 1.2 28.3 2,390

Indian ADRs Chg (%) (Pts) (Close)

INFY 2.3 1.0 $43.5

WIT 2.5 0.2 $8.9

IBN 2.9 0.9 $30.1

HDB 2.7 0.8 $29.4

Advances / Declines BSE NSE

Advances 1,429 727

Declines 1,276 670

Unchanged 139 95

Volumes (` cr)

BSE 1,749

NSE 8,510



IRB emerges L1 for road projects worth `2,400cr IRB has emerged as the lowest bidder for the four-laning project of Goa/Karnataka Border to Kundapur section of NH-17 in Karnataka under NHDP phase IV on design, build, finance, operate and transfer (Toll) basis. The estimated cost of the project is `2,400cr. The concession period is 28 years and construction period is 910 days. Further, IRB had sought `536cr as viability gap funding (VGF) from NHAI. This project win would be after a year as IRB had won the Ahmedabad-Vadodara project in April 2011. Further, this is in-line with the company’s guidance of `4,000cr-5,000cr of order inflow each year. We continue to maintain our Buy recommendation on the stock with a target price of `166.

Result Reviews ONGC (CMP: `256, TP: Under Review)

ONGC’s 4QFY2012 results were above our expectations. The company’s top line increased 22.2% yoy at `18,819cr. EBITDA margin expanded 932bp yoy to 42.6% and EBITDA increased by 56.4% yoy to `8,019cr. The company’s depreciation and amortization expenses decreased 41.5% yoy to `1,349cr. Net profit increased substantially by 102.2% yoy to `5,644cr much ahead of our estimate of `2,652cr. We recommend a Buy on the Stock with our target price under review. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2013E 151,858 39.3 29,079 34.0 20.1 7.1 1.3 2.8 1.0

FY2014E 150,563 39.5 30,798 36.0 18.7 6.8 1.2 2.5 0.9

Tata Motors (CMP: `276 / TP: `312 / Upside: 13%) Consolidated performance a mixed bag: For 4QFY2012, Tata Motors (TTMT) reported impressive 44.3% yoy (12.5% qoq) growth in its top line to `50,908cr, led by 51.5% yoy (10.6% qoq) growth in JLR sales, which were driven by a 48.2% yoy (13.6% qoq) jump in volumes and 4.4% yoy (flat qoq) improvement in net average realization. While Land Rover volumes jumped by 51% yoy, driven mainly by incremental volumes from Evoque (29,171 units during the quarter), Jaguar volumes jumped by 30% yoy due to the strong performance of the recently launched XF. The company’s operating margin, however, declined by 184bp qoq and stood at 13.2% primarily on account of increased other expenditure, which increased substantially by 36.3% qoq. Raw-material expenses, on the other hand, were stable during the quarter, which supported the margins. Led by tax credits of `1,793.7cr related to carry forward income tax losses at JLR, reported net profit jumped sharply to `6,234cr. Adjusted for tax credits, net profit came in better than expectations, registering 80.5% yoy growth to `4,440cr.

Strong standalone performance: TTMT posted better-than-expected 14.4% yoy (22.9% qoq) growth during the quarter on account of 18.5% yoy (23.3% qoq) growth in volumes. Net average realization, however, declined by 3.6% yoy due to higher contribution of light commercial vehicles during the quarter. Operating



margin improved substantially by 268bp qoq to 9.1%, mainly led by operating leverage benefits and a decline in raw-material expenses. Hence, net profit increased substantially by 225.5% sequentially to `565cr.

At `276, the stock is trading at 6.3x FY2014E earnings. We maintain our Accumulate rating on the stock with an SOTP target price of `312.

Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY13E 191,183 12.8 12,500 39.4 40.4 7.0 2.5 4.4 0.5

FY14E 217,703 12.8 13,849 43.6 34.2 6.3 1.9 3.9 0.5

Sun Pharmaceuticals (CMP - `566, TP - `634, Upside: 12%) Sun Pharmaceuticals reported sales and the net profit came in much ahead of expectations. For the quarter, the company posted sales of `2330cr, a growth of 59.4% yoy. The growth in the domestic and exports, both of grew robustly. The domestic formulations reported growth of 49%, while the US and ROW formulation sales during the quarter came in at 66% and 31% respectively. On the operating front, the Gross and Operating margins came in at 78.4% and 41.1% respectively. The OPM’s were were just in line with expectations. Thus, while the OPM’s were in line , higher sales growth and higher other income and lower interest expenses during the quarter aided the net profit growth of 85.3% yoy to end the period at `820cr, in comparison to the `775cr estimated for the quarter. We maintain our Accumulate with a target of `634.


March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2013E 9,272 36.3 2,768 26.7 22.1 21.2 4.4 16.0 5.8

FY2014E 11,080 38.0 2,980 28.8 20.8 20.9 3.7 12.5 5.7

SAIL (CMP: `93, TP: Under Review) SAIL’s 4QFY2012 net sales were above our estimates; however, adjusted PAT came in below our estimates. SAIL’s 4QFY2012 net sales increased by 12.2% yoy to `13,397cr (above our estimates of `12,183cr) mainly due to increase in sales volumes in our view. Raw material costs and other expenditure increased 27.1% and 38.6% yoy to `6,866 and `1979cr, respectively, while power and fuel costs increased 26.2% yoy to `1,156cr. EBITDA dipped 20.5 % yoy to `1871cr and EBITDA margin contracted by 574bp yoy to 14.0% (in line with our estimate of 14.0%). The company reported an exceptional item related to forex gain of `725cr in 4QFY2012, compared to exceptional gain of `34cr in 4QFY2011. Hence, reported net profit increased by 3.0% yoy to `1577cr. However, excluding exceptional items, adjusted net profit declined substantially by 43.1% yoy to `852cr (below our estimate of `1,263cr) in 4QFY2012. We maintain an accumulate rating on the stock keeping our target price under review




March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2013E 52,461 18.0 5,235 12.7 11.9 7.2 0.8 6.1 1.1

FY2014E 62,935 18.8 5,706 13.8 11.8 6.6 0.7 5.1 1.0

IPCA Labs (CMP - `323, TP - `443, Upside: 37%) IPCA Labs reported sales and the net profit came in below expectations. For the quarter, the company posted sales of `553cr, a growth of 16.7% yoy. On the operating front, the Gross and Operating margins came in at 60.4% and 18.7% respectively. The OPM’s were below expectations of 20.7%. This aided the net profit to come at `76.6cr, in comparison to the `64.9cr estimated for the quarter. We maintain our buy with a target of `443.


March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2013E 2,907 21.5 412 32.7 27.7 9.9 2.5 7.2 1.5

FY2014E 3,541 21.5 510 40.6 27.8 8.0 2.0 5.8 1.2

Aurobindo Pharma (CMP - `111, TP - `175, Upside: 58%) Aurobindo Pharmaceuticals reported sales and the net profit came in above expectations. For the quarter, the company posted sales of `1170cr, a growth of 2.5% yoy. On the operating front, the Gross and Operating margins came in at 45.2% and 10.3% respectively. The OPM’s were below expectations of 13.9%. This aided the net profit to come at `38.1cr, in comparison to the `47cr estimated for the quarter. We maintain our buy with a target of `175.


March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2013E 5,243 14.6 480 16.5 15.1 6.7 1.0 6.5 1.0

FY2014E 5,767 14.6 507 17.4 14.0 6.3 0.8 5.7 0.8

NCC (CMP: `32, TP: Under review) For 4QFY2012, NCC posted better-than expected numbers on the revenue and earnings front however the company disappointed on EBITDAM level. On the top line front, NCC reported jump of 21.4% yoy to `1,755cr, which was higher than our expectation of `1,429cr. On the EBITDAM front, the company’s margin were disappointing at 5.8%, a dip of 320bp on yoy basis and lower than our estimate of 7.4%. Interest cost came in at `98cr a yoy jump of 19.9% but a decline of 8.1% on sequential basis. On the bottom line level, NCC reported a yoy decline of 69.7%

to `11cr, almost in line with our estimate of `10cr despite posting higher revenue owing to lower EBITDAM and higher interest cost. The current outstanding order



book of NCC stands at `20,196cr, with order inflow of `10,116cr for FY2012. We maintain Buy view on the stock however the target price is under review.


March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2013E 5,790 9.2 89 3.5 3.7 9.2 0.3 8.1 0.7

FY2014E 7,022 9.5 138 5.4 5.6 5.9 0.3 7.8 0.7



Result Previews GAIL(CMP: `330 / TP: `392 / Upside: 19%) GAIL is expected to announce its 4QFY2012 results. We expect the company’s top line to grow by 20.3% yoy to `10,697cr. However, the company’s operating margin is expected to contract by 260bp yoy to 11.7%. On the bottom-line front, we expect GAIL to report growth of 1.9% yoy to `798cr. We continue to maintain our Buy rating on GAIL with a target price of `392. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2013E 37,456 10.7 2,756 44.9 18.9 14.6 2.6 7.8 0.8

FY2014E 42,332 11.0 3,174 51.7 19.1 12.7 2.3 6.3 0.6

Mahindra and Mahindra (CMP: `656 / TP: `793 / Upside: 21%) Mahindra and Mahindra is slated to announce its 4QFY2012 results. We expect the company’s top line to grow by strong ~20% yoy to `8,046cr, backed by ~12% yoy growth in total volumes and ~7% yoy growth in net average realization. The company’s EBITDA margin is expected to witness a decline of 132bp yoy to 11.4% on account of increased purchases from its manufacturing subsidiary, MVML, and lower share of tractors in the total volume mix. As a result, the bottom line is expected to remain flat on a yoy basis to `610cr. We continue to maintain our Buy recommendation on the stock with a target price of `793. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2013E 37,456 10.7 2,756 44.9 18.9 14.6 2.6 7.8 0.8

FY2014E 42,332 11.0 3,174 51.7 19.1 12.7 2.3 6.3 0.6

DLF (CMP: `188, TP: -, Upside: -) DLF is expected to announce its 4QFY2012 results. We expect the company’s top line to decline by 11.2% yoy to `2,382cr. However, the company’s operating margin is expected to expand by 1,441bp yoy to 39.2%. On the bottom-line front, we expect DLF to report growth of 29.4% yoy to `446cr. We continue to maintain our Neutral recommendation on DLF.


March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2013E 9,878 44.7 1,631 9.6 6.4 19.6 1.2 13.1 5.8

FY2014E 12,033 46.1 2,277 13.4 8.7 14.0 1.2 10.4 4.8



Colgate (CMP: `1,216, TP: -, Upside: -) Colgate is expected to announce its 4QFY2012results. For the quarter, we expect the company to post 16.4% yoy growth in its top line to `677cr, aided by volume and realization growth. Net profit for the quarter is expected to grow by 15.0% yoy to `131cr, aided by margin expansion of 348bp yoy to 25.0%. We maintain our Neutral view on the stock. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2013E 3,007 21.1 513 37.7 129.4 32.3 38.4 27.8 5.4

FY2014E 3,417 22.1 579 42.5 120.1 28.6 31.0 23.4 4.7

JP Associates (CMP: `62, TP: `98, Upside: 58%) We expect Jaiprakash Associates (JAL) to post marginal top-line growth of 2.0% yoy to `4,063cr for the quarter on the back of higher revenue contribution from the cement segment due to capacity addition. We expect the company to post blended EBITDA margin of 22.9%, an improvement of 150bp yoy for the quarter. The bottom line is expected to be at `230.6cr, registering a yoy decline of 23.6% for the quarter. This is mainly on account of a 16.3% yoy expected jump in interest cost to `470.9cr. We recommend Buy on the stock with an SOTP target price of `98. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2013E 16,017 24.4 893 4.2 8.8 14.8 1.2 8.7 2.1

FY2014E 18,359 23.5 1,067 5.0 9.7 12.3 1.2 8.0 1.9

HDIL (CMP: `67, TP: `115, Upside: 72%) HDIL is expected to announce its 4QFY2012 results. We expect the company’s top line to increase by 14.8% yoy to `601cr. Operating margin is expected to expand by 1,105bp yoy to 59.9%. On the bottom-line front, we expect HDIL to report flat growth on a yoy basis to `197cr. We continue to maintain our Buy recommendation on HDIL with a target price of `115.


March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2013E 2,441 53.0 889 21.4 8.4 3.1 0.3 5.7 3.0

FY2014E 3,344 46.7 1,053 25.4 9.1 2.6 0.2 4.9 2.3



Anant Raj (CMP: `47, TP: `78, Upside: 66%) Anant Raj is expected to announce its 4QFY2012 results. We expect the company’s top line to come in at `177cr. However, operating margin is expected to contract by 2,704bp yoy to 44.7%. The company’s bottom line is expected to come in at `55cr. We continue to maintain our Buy recommendation on Anant Raj with a target price of `78.


March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2013E 657 52.0 248 8.4 6.3 5.6 0.3 7.2 3.8

FY2014E 875 56.1 375 12.7 8.9 3.7 0.3 5.0 2.8

Simplex Infra (CMP: `212, TP: `316, Upside: 49%) Simplex Infra is expected to continue its healthy performance on a sequential basis, as we project 27.1% yoy top-line growth to `1,738cr for 4QFY2012. We expect the company’s EBITDA margin to fall by 100bp to 9.0%. The bottom line is expected to be under pressure due to increased interest cost (expected jump of 62.2% yoy), resulting in a yoy decline of 15.1% to `31.4cr for the quarter. We continue to maintain our Buy view on the stock with a target price of `316. Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2013E 6,732 9.3 135 27.2 11.0 7.8 0.8 5.0 0.8

FY2014E 7,902 9.6 174 35.1 12.6 6.0 0.7 4.6 0.7

GIPCL (CMP: `62, TP: `98, Upside: 58%) GIPCL is expected to announce its 4QFY2012 results. We expect GIPCL to register flat top-line performance during the quarter. The company’s OPM is expected to decline by 1,201bp yoy to 27.4% on a high base on account of lower plant availability and lesser generation-linked incentives. The first unit of SLPPI plant (125MW) was not operational during 4QFY2012 due to damaged rotor. The bottom line is expected to decline by 71.9% yoy to `23cr due to poor operational performance and higher base due to the tax write-back in 4QFY2011. We maintain our Buy view on the stock with a target price of `98.


March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2013E 1,557 28.7 157 10.4 10.5 6.0 0.6 3.7 1.1

FY2014E 1,573 27.5 154 10.2 9.6 6.1 0.6 3.3 0.9



Quarterly Bloomberg Brokers Consensus Estimate Colgate - (30/05/2012) Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)

Net sales 696 582 20 670 4

EBITDA 155 144 8 149 4

EBITDA margin (%) 22.3 24.7 22.2

Net profit 125 114 10 116 8

DLF Ltd - Consolidated (30/05/2012) Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)

Net sales 2,338 2,683 (13) 2,034 15

EBITDA 1,013 666 52 823 23

EBITDA margin (%) 43.3 24.8 40.5

Net profit 275 313 (12) 247 11

Gail Ltd - (30/05/2012) Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)

Net sales 10,504 8,894 18 11,260 (7)

EBITDA 1,389 1,288 8 1,795 (23)

EBITDA margin (%) 13.2 14.5 15.9

Net profit 832 783 6 1,091 (24)

HDIL - Consolidated (30/05/2012) Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)

Net sales 503 524 (4) 90 459

EBITDA 223 256 (13) 51 337

EBITDA margin (%) 44.3 48.9 56.7

Net profit 155 197 (21) 24 546

Jaiprakash Associates - (30/05/2012) Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)

Net sales 4,113 3,905 5 3,258 26

EBITDA 918 851 8 816 13

EBITDA margin (%) 22.3 21.8 25.0

Net profit 228 302 (25) 205 11

Mahindra & Mahindra Ltd - (30/05/2012) Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)

Net sales 8,163 6,682 22 8,327 (2)

EBITDA 932 862 8 1,021 (9)

EBITDA margin (%) 11.4 12.9 12.3

Net profit 614 607 1 662 (7)



Tata Chemical Ltd - Consolidated (30/05/2012) Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)

Net sales 3,369 2,623 28 3,794 (11)

EBITDA 549 486 13 556 (1)

EBITDA margin (%) 16.3 18.5 14.7

Net profit 204 198 3 254 (20)

Economic and Political News

Foreign retail investors can buy US$1bn Indian corporate debt: Govt. High Govt. borrowing may crowd out private sector: RBI Air India board refers Boeing compensation issue to Govt.

Corporate News

Jindal Steel's US$2.1bn project gets Bolivian boot JSPL buys 10% in Gujarat NREs Oz unit Bharat Forge to sell loss-making US unit

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

Date Company

May 31, 2012GAIL, M&M, DLF, Jaiprakash Asso., Colgate, Tata Chemicals, HDIL, Page Industries, BGR Energy , PTC India, Anant Raj, GIPCL, Simplex Infra, SpiceJet, Greenply

June 01, 2012 -

June 02, 2012 Mphasis

June 03, 2012 -

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

May 30, 2012 Euro ZoneEuro-Zone Consumer Confidence

Value May-12 (19.30) (19.30)

May 31, 2012 US Initial Jobless claims Thousands 19-May-12 370.00 370.00

Germany Unemployment change (000's) Thousands Apr-12 19.00 (6.50)

US GDP Qoq (Annualised) % Change Mar-12 2.20 1.90

India Qtrly GDP YoY% % Change Dec-11 6.10 6.10

June 01, 2012 Germany PMI Manufacturing Value May-12 45.00 45.00

US Change in Nonfarm payrolls Thousands Apr-12 115.00 150.00

US Unnemployment rate % Apr-12 8.10 8.10

China PMI Manufacturing Value Apr-12 53.30 52.00

India Imports YoY% % Change Mar-12 24.28 --

India Exports YoY% % Change Mar-12 (5.71) --

UK PMI Manufacturing Value Apr-12 50.50 49.70

June 05, 2012 Germany PMI Services Value May-12 52.20 --

June 06, 2012 Euro Zone Euro-Zone GDP s.a. (QoQ) % Change Mar-12 -- --

Euro Zone ECB announces interest rates % May-12 1.00 --

June 07, 2012 UK BOE Announces rates % Ratio May-12 0.50 0.50

June 09, 2012 China Industrial Production (YoY) % Change Apr-12 9.30 --

China Consumer Price Index (YoY) % Change Apr-12 3.40 --

June 10, 2012 China Exports YoY% % Change Apr-12 4.90 --

June 12, 2012 India Industrial Production YoY % Change Mar-12 (3.50) --

UK Industrial Production (YoY) % Change Mar-12 (2.60) --

June 13, 2012 US Producer Price Index (mom) % Change Apr-12 (0.20) --

June 14, 2012 US Consumer price index (mom) % Change Apr-12 -- --



May 30, 2012

Market Outlook

1 1

Market Strategy

May 30, 2012


Macro watch

Exhibit 1: Quarterly GDP trends

5.8 5.9

7.5

9.8

7.4

9.4

8.5

7.6

8.3

7.8 7.7

6.9

6.1

5.0

6.0

7.0

8.0

9.0

10.0

3Q

FY09

4Q

FY09

1Q

FY10

2Q

FY10

3Q

FY10

4Q

FY10

1Q

FY11

2Q

FY11

3Q

FY11

4Q

FY11

1Q

FY12

2Q

FY12

3Q

FY12

(%)

Source: CSO, Angel Research

Exhibit 2: IIP trends

5.3

6.2

9.5

3.7 3.4

2.5

(5.0)

6.0

2.7

1.1

4.1

(3.5)

(6.0)

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

12.0

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

(%)

Source: MOSPI, Angel Research

Exhibit 3: Monthly WPI inflation trends

9.6 9.5 9.49.8 10.0 9.9

9.5

7.7

6.97.4

6.97.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

(%)

Source: MOSPI, Angel Research

Exhibit 4: Manufacturing and services PMI

48.0

50.0

52.0

54.0

56.0

58.0

60.0

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

Mfg. PMI Services PMI

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

Exhibit 5: Exports and imports growth trends

(15)

0

15

30

45

60

75

90

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Exports yoy growth Imports yoy growth(%)


Exhibit 6: Key policy rates

8.00

7.00

4.75

4.00

5.00

6.00

7.00

8.00

9.00

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Repo rate Reverse Repo rate CRR (%)

Source: RBI, Angel Research

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

Agri / Agri Chemical

Rallis Neutral 126 - 2,444 1,432 1,647 14.7 14.7 7.0 8.0 18.0 15.7 3.8 3.2 22.8 22.3 1.7 1.5

United Phosphorus Buy 116 183 5,363 8,191 8,764 16.5 16.5 17.1 18.3 6.8 6.4 1.1 1.0 17.5 16.2 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Accumulate 305 345 2,607 2,691 3,032 15.6 15.5 29.4 32.8 10.4 9.3 2.5 2.0 26.5 23.6 0.9 0.8

Apollo Tyres Accumulate 89 100 4,493 13,699 15,184 10.5 10.2 12.1 13.3 7.4 6.7 1.3 1.1 19.7 18.4 0.5 0.4

Ashok Leyland Buy 25 33 6,665 14,798 16,687 9.6 9.6 2.4 3.0 10.3 8.4 2.1 1.8 14.8 16.5 0.5 0.4

Automotive Axle Accumulate 456 514 689 1,211 1,387 12.1 11.7 50.3 57.1 9.1 8.0 2.3 1.9 27.8 25.7 0.6 0.5

Bajaj Auto Buy 1,526 1,835 44,170 22,118 24,889 19.0 18.6 115.7 126.5 13.2 12.1 5.3 4.2 45.0 38.9 1.6 1.3

Bharat Forge Buy 315 372 7,338 7,173 7,998 16.3 16.5 22.3 26.6 14.1 11.9 2.7 2.3 21.0 21.0 1.1 0.9

Bosch India Accumulate 8,800 9,429 27,632 9,390 10,716 19.5 19.1 420.2 471.4 20.9 18.7 4.9 4.1 23.3 21.8 2.7 2.3

CEAT Buy 98 164 336 5,067 5,631 8.0 7.6 39.4 41.0 2.5 2.4 0.4 0.4 18.8 16.5 0.3 0.3

Exide Industries Buy 124 146 10,502 5,787 6,595 15.5 17.0 7.1 9.0 17.4 13.8 3.1 2.6 18.6 20.3 1.5 1.2

FAG Bearings Neutral 1,581 - 2,627 1,531 1,748 18.8 18.5 118.0 132.8 13.4 11.9 2.9 2.4 24.0 21.9 1.5 1.2

Hero Motocorp Buy 1,862 2,280 37,173 26,106 29,296 15.0 15.2 140.3 148.1 13.3 12.6 6.3 4.8 54.8 43.3 1.1 0.9

JK Tyre Buy 78 113 321 8,058 9,025 5.4 5.5 24.8 32.2 3.2 2.4 0.3 0.3 11.4 13.2 0.3 0.3

Mahindra and Mahindra Buy 656 793 40,292 34,740 39,263 10.7 11.0 44.9 51.7 14.6 12.7 2.6 2.3 18.9 19.1 0.8 0.7

Maruti Buy 1,127 1,510 32,560 42,683 48,736 7.1 7.5 86.6 100.6 13.0 11.2 1.9 1.6 15.3 15.5 0.6 0.5

Motherson Sumi Buy 163 216 6,332 11,167 12,516 9.5 10.0 11.3 14.4 14.4 11.4 3.1 2.6 23.3 24.7 0.7 0.6

Subros Neutral 33 - 200 1,225 1,393 8.5 8.2 4.2 5.0 8.0 6.7 0.8 0.8 10.3 11.8 0.4 0.3

Tata Motors Accumulate 276 312 73,530 191,183 210,301 12.8 12.8 39.4 43.6 7.0 6.3 2.5 1.9 40.4 34.3 0.5 0.4

TVS Motor Buy 35 55 1,668 7,982 8,816 6.4 6.3 5.0 5.6 7.0 6.3 1.2 1.1 18.9 18.2 0.2 0.2

Capital Goods

ABB* Sell 749 498 15,873 8,760 10,023 6.4 6.4 18.2 20.7 41.1 36.1 5.5 4.9 14.4 14.6 1.8 1.6

BGR Energy Reduce 302 274 2,181 4,170 5,396 11.5 10.4 27.2 30.4 11.1 10.0 1.8 1.6 17.3 17.4 1.1 1.0

BHEL Neutral 218 - 53,309 46,344 46,916 18.3 18.6 23.5 24.1 9.3 9.0 1.8 1.6 21.3 18.9 1.0 1.0

Blue Star Buy 162 221 1,452 3,250 3,551 5.9 5.9 12.4 15.8 13.0 10.2 2.7 2.2 21.2 23.8 0.5 0.4

Crompton Greaves Buy 111 164 7,092 12,936 14,101 9.6 10.0 10.9 11.7 10.2 9.4 1.8 1.5 18.4 17.3 0.6 0.5

Jyoti Structures Buy 39 67 324 2,622 2,801 10.6 11.0 10.9 13.4 3.6 2.9 0.4 0.4 12.7 13.9 0.3 0.3

KEC International Buy 51 73 1,305 6,686 7,200 7.7 7.9 10.6 12.2 4.8 4.2 0.9 0.8 25.9 24.0 0.3 0.3

LMW Buy 1,530 2,609 1,723 2,663 3,130 12.8 12.8 185.0 217.4 8.3 7.0 1.6 1.4 21.2 21.7 0.2 0.1

Thermax Reduce 449 426 5,353 5,514 5,559 8.3 8.0 29.7 28.4 15.1 15.8 2.9 2.5 20.2 16.9 0.9 0.8


May 30, 2012

Market Outlook

Stock Watch



Cement

ACC Neutral 1,139 - 21,382 11,018 12,663 19.9 21.2 70.7 81.2 16.1 14.0 2.8 2.5 18.0 19.0 1.7 1.4

Ambuja Cements Neutral 146 - 22,466 10,035 11,504 23.5 23.8 10.1 10.6 14.4 13.9 2.8 2.6 18.5 19.4 1.9 1.5

India Cements Neutral 75 - 2,312 4,423 4,906 18.2 18.8 9.9 12.7 7.6 6.0 0.6 0.6 8.6 10.5 0.8 0.7

J K Lakshmi Cements Buy 62 79 760 1,938 2,246 19.1 20.1 14.6 16.1 4.2 3.9 0.6 0.5 13.4 13.6 0.5 0.9

Madras Cements Neutral 139 - 3,299 3,444 3,786 25.5 24.9 14.6 17.1 9.5 8.1 1.4 1.2 15.6 16.0 1.6 1.3

Shree Cements Neutral 2,509 - 8,741 5,465 6,249 24.3 23.7 151.5 222.1 16.6 11.3 4.0 3.4 21.6 25.8 1.3 1.0

UltraTech Cement Neutral 1,377 - 37,729 20,116 22,655 21.3 22.5 82.1 97.5 16.8 14.1 2.6 2.3 16.8 17.4 1.8 1.7

Construction

Ashoka Buildcon Buy 200 302 1,053 2,014 2,294 22.4 22.4 28.4 30.8 7.1 6.5 0.9 0.8 14.1 13.3 2.3 2.6

Consolidated Co Neutral 14 - 261 2,526 2,792 5.7 6.6 1.8 2.8 7.7 5.0 0.4 0.4 5.5 8.1 0.3 0.3

Hind. Const. Neutral 18 - 1,110 4,239 4,522 11.1 11.8 (1.8) (0.8) (10.2) (23.4) 1.0 1.2 (9.5) (4.7) 1.3 1.2

IRB Infra Buy 114 166 3,787 3,821 4,582 42.3 40.2 15.0 16.9 7.6 6.7 1.2 1.0 16.1 15.8 2.6 2.4

ITNL Buy 171 265 3,324 6,619 7,925 23.8 23.3 22.0 26.7 7.8 6.4 1.1 1.0 14.9 15.9 2.2 2.1

IVRCL Infra Buy 42 79 1,121 5,758 6,860 9.2 9.2 4.7 6.0 9.0 7.0 0.5 0.5 6.0 7.3 0.7 0.6

Jaiprakash Asso. Buy 62 104 13,173 16,017 18,359 24.4 23.5 4.2 5.0 14.8 12.4 1.3 1.2 8.8 9.7 2.1 1.9

Larsen & Toubro Buy 1,201 1,553 73,552 59,559 69,089 12.1 11.5 70.8 76.5 17.0 15.7 2.5 2.2 16.1 15.3 1.4 1.2

Madhucon Proj Buy 42 70 310 2,206 2,502 10.7 10.7 4.6 4.7 9.0 9.0 0.5 0.4 5.2 5.0 0.7 0.7

Nagarjuna Const. Buy 32 76 821 5,790 7,022 9.2 9.5 3.5 5.4 9.2 6.0 0.3 0.3 3.7 5.6 0.8 0.7

Patel Engg. Neutral 87 - 604 3,609 3,836 13.1 13.1 14.0 14.6 6.2 6.0 0.4 0.4 6.3 6.1 1.0 1.1

Punj Lloyd Neutral 46 - 1,539 10,592 12,193 8.4 8.4 2.9 4.6 16.0 10.2 0.5 0.5 3.9 3.1 0.6 0.6

Sadbhav Engg. Buy 123 199 1,844 2,989 3,315 10.6 10.6 10.2 11.3 12.1 10.9 1.9 1.6 17.6 16.3 0.8 0.8

Simplex Infra Buy 213 316 1,054 6,732 7,902 9.3 9.6 27.2 35.1 7.8 6.1 0.8 0.7 11.0 12.6 0.5 0.4

Financials

Allahabad Bank Accumulate 138 156 6,915 7,392 8,542 3.1 3.1 38.3 42.1 3.6 3.3 0.6 0.5 18.4 17.6 - -

Andhra Bank Neutral 108 - 6,029 5,151 5,843 3.2 3.1 22.4 25.7 4.8 4.2 0.7 0.7 15.8 16.0 - -

Axis Bank Buy 1,024 1,476 42,362 16,157 19,557 3.2 3.2 116.4 139.1 8.8 7.4 1.6 1.4 20.0 20.3 - -

Bank of Baroda Buy 694 925 27,173 15,993 18,918 2.6 2.6 127.3 149.9 5.5 4.6 0.9 0.8 17.8 18.2 - -

Bank of India Buy 331 411 18,995 13,558 15,551 2.5 2.4 61.6 70.8 5.4 4.7 0.9 0.8 16.8 16.9 - -

Bank of Maharashtra Accumulate 50 53 2,927 3,580 4,050 3.2 3.2 11.5 13.1 4.3 3.8 0.7 0.6 17.4 17.2 - -

Canara Bank Buy 402 522 17,824 12,061 13,906 2.3 2.3 83.1 92.7 4.8 4.3 0.8 0.7 16.7 16.4 - -

Central Bank Neutral 75 - 5,491 6,838 7,912 2.3 2.4 13.8 20.3 5.4 3.7 0.8 0.7 10.9 14.4 - -


May 30, 2012

Market Outlook

Stock Watch



Financials

Corporation Bank Buy 416 486 6,164 5,203 5,880 2.2 2.1 107.5 112.7 3.9 3.7 0.7 0.6 17.9 16.5 - -

Dena Bank Buy 89 111 3,103 3,149 3,522 2.8 2.8 23.3 26.1 3.8 3.4 0.6 0.5 17.7 17.0 - -

Federal Bank Neutral 421 - 7,195 2,743 3,131 3.4 3.3 49.7 57.4 8.5 7.3 1.1 1.0 14.1 14.6 - -

HDFC Neutral 661 - 97,644 7,393 8,844 3.5 3.4 31.7 37.9 20.9 17.4 4.2 3.7 34.7 31.9 - -

HDFC Bank Accumulate 505 567 118,489 21,831 27,477 4.3 4.3 28.3 35.5 17.8 14.2 3.4 2.9 20.8 22.1 - -

ICICI Bank Buy 839 1,174 96,425 22,209 26,512 2.8 2.8 67.9 81.1 12.4 10.3 1.5 1.4 14.7 16.0 - -

IDBI Bank Buy 89 117 11,359 8,004 9,589 1.9 2.0 19.9 23.9 4.5 3.7 0.6 0.5 13.8 14.9 - -

Indian Bank Accumulate 173 197 7,435 6,312 7,119 3.4 3.3 41.1 43.7 4.2 4.0 0.7 0.6 18.2 16.9 - -

IOB Buy 81 96 6,488 7,354 8,283 2.5 2.4 16.3 21.7 5.0 3.8 0.6 0.5 11.5 13.9 - -

J & K Bank Neutral 912 - 4,421 2,535 2,861 3.5 3.4 176.3 184.4 5.2 5.0 0.9 0.8 19.3 17.6 - -

LIC Housing Finance Buy 244 286 12,291 2,108 2,607 2.6 2.6 24.5 30.6 10.0 8.0 1.9 1.6 20.1 21.4 - -

Oriental Bank Buy 231 274 6,746 6,431 7,315 2.7 2.6 54.4 63.8 4.3 3.6 0.6 0.5 13.6 14.3 - -

Punjab Natl.Bank Buy 749 1,015 25,394 19,893 23,653 3.1 3.2 153.4 175.2 4.9 4.3 0.9 0.7 18.3 18.1 - -

South Ind.Bank Neutral 24 - 2,690 1,399 1,596 2.6 2.5 3.5 3.8 6.8 6.3 1.2 1.1 18.7 17.5 - -

St Bk of India Buy 2,120 2,486 142,282 68,925 80,565 3.7 3.7 236.6 282.7 9.0 7.5 1.5 1.3 18.6 19.3 - -

Syndicate Bank Buy 92 131 5,544 7,133 8,255 3.0 3.0 25.9 30.0 3.6 3.1 0.6 0.5 16.9 17.1 - -

UCO Bank Neutral 68 - 4,517 5,623 6,380 2.4 2.4 16.9 17.9 4.0 3.8 0.8 0.7 16.5 15.4 - -

Union Bank Buy 204 276 11,248 10,215 11,854 2.9 2.8 42.7 50.3 4.8 4.1 0.8 0.7 17.0 17.5 - -

United Bank Buy 60 78 2,162 3,551 4,128 2.7 2.8 18.8 22.6 3.2 2.7 0.5 0.4 15.5 16.5 - -

Vijaya Bank Neutral 54 - 2,693 2,668 3,001 2.2 2.2 10.6 12.2 5.1 4.5 0.7 0.6 13.3 13.8 - -

Yes Bank Buy 338 450 11,964 3,209 4,144 2.7 2.8 33.9 41.5 10.0 8.1 2.1 1.7 23.1 23.3 - -

FMCG

Asian Paints Neutral 3,837 - 36,805 11,423 13,309 16.3 16.3 125.3 148.4 30.6 25.9 10.4 8.2 38.0 35.4 3.1 2.7

Britannia Buy 528 650 6,312 5,906 6,856 6.9 7.0 22.3 28.3 23.7 18.7 9.7 7.2 45.2 44.1 1.1 0.9

Colgate Neutral 1,216 - 16,539 3,007 3,417 21.1 22.1 37.7 42.6 32.3 28.6 38.4 31.0 129.4 120.1 5.4 4.7

Dabur India Neutral 105 - 18,257 5,878 6,799 16.8 17.0 4.2 4.9 25.3 21.3 9.2 7.5 39.3 42.0 3.1 2.7

GlaxoSmith Con* Neutral 2,694 - 11,329 3,124 3,663 17.1 11.6 103.0 123.3 26.2 21.9 8.1 6.5 34.0 32.9 3.3 2.7

Godrej Consumer Neutral 575 - 19,555 5,973 7,000 18.4 18.6 22.8 27.2 25.2 21.2 6.9 5.6 31.3 38.4 3.4 2.9

HUL Neutral 417 - 90,113 25,350 29,309 14.3 14.4 14.1 16.4 29.5 25.4 22.1 17.3 82.7 76.2 3.4 2.9

ITC Accumulate 231 252 180,762 29,638 34,159 35.4 35.8 9.3 10.9 24.7 21.2 8.0 6.5 35.3 33.8 5.8 5.0


May 30, 2012

Market Outlook

Stock Watch



FMCG

Marico Neutral 174 - 11,224 4,667 5,427 12.8 12.9 6.6 8.1 26.2 21.4 7.0 5.5 30.0 28.8 2.4 2.0

Nestle* Neutral 4,540 - 43,770 8,731 10,539 21.0 21.4 119.3 147.9 38.1 30.7 23.3 15.9 73.0 61.6 5.0 4.1

Tata Global Buy 110 136 6,802 7,011 7,712 9.7 10.0 6.0 7.1 18.5 15.4 1.7 1.6 8.9 10.2 0.9 0.8

IT

HCL Tech Accumulate 506 560 35,037 22,792 25,743 17.4 17.4 37.8 43.0 13.4 11.8 3.0 2.5 22.3 21.3 1.5 1.3

Hexaware Neutral 125 - 3,707 1,821 2,105 19.0 18.6 9.8 10.7 12.8 11.7 2.9 2.6 23.7 22.5 1.8 1.5

Infosys Buy 2,407 2,792 138,214 37,615 42,491 31.1 30.6 158.5 174.5 15.2 13.8 3.4 2.9 22.5 20.8 3.0 2.5

Infotech Enterprises Accumulate 166 177 1,849 1,758 1,972 17.0 16.6 16.8 18.6 9.9 8.9 1.4 1.2 13.6 13.2 0.7 0.5

KPIT Cummins Neutral 116 - 2,067 2,028 2,239 15.0 14.8 9.0 11.4 12.9 10.2 2.3 1.9 19.3 18.7 1.0 0.8

Mahindra Satyam Accumulate 77 86 9,061 7,097 7,812 16.2 16.0 7.5 8.0 10.3 9.7 1.4 1.2 13.2 12.3 0.9 0.7

Mindtree Neutral 619 - 2,512 2,172 2,450 16.1 15.5 53.9 58.5 11.5 10.6 2.2 1.8 18.9 17.0 1.0 0.8

Mphasis Buy 376 433 7,902 5,904 6,320 18.3 17.9 38.7 41.2 9.7 9.1 1.5 1.3 14.9 13.7 0.9 0.7

NIIT Buy 40 52 660 1,162 1,304 14.8 15.1 7.1 8.8 5.6 4.6 0.9 0.8 16.7 18.4 0.4 0.3

Persistent Neutral 346 - 1,382 1,109 1,224 23.3 22.4 37.2 40.1 9.3 8.6 1.4 1.3 15.4 14.5 0.9 0.8

TCS Neutral 1,241 - 242,852 57,189 66,329 29.3 28.7 63.2 70.9 19.7 17.5 6.0 4.9 30.5 27.7 4.0 3.4

Tech Mahindra Accumulate 665 725 8,475 5,880 6,314 15.6 15.2 75.9 82.2 8.8 8.1 1.8 1.5 20.1 18.1 1.4 1.2

Wipro Accumulate 409 430 100,665 41,918 46,879 19.4 19.9 25.1 28.7 16.3 14.3 3.0 2.6 18.6 18.3 2.1 1.7

Media

D B Corp Buy 195 269 3,575 1,652 1,863 25.7 26.3 13.5 16.1 14.5 12.1 3.2 2.7 24.1 24.4 2.1 1.8

HT Media Buy 113 148 2,644 2,255 2,555 16.3 16.7 9.0 10.6 12.5 10.6 1.6 1.4 13.4 13.8 0.8 0.6

Jagran Prakashan Buy 87 137 2,761 1,499 1,642 27.4 28.8 7.6 9.1 11.4 9.6 3.8 3.4 34.6 37.7 1.8 1.6

PVR Neutral 161 - 418 625 732 17.4 16.9 12.4 15.8 13.0 10.2 2.1 2.2 8.5 9.9 0.8 0.7

Sun TV Network Neutral 247 - 9,736 2,135 2,458 75.2 74.4 20.9 24.0 11.8 10.3 2.8 2.3 26.0 25.1 3.5 2.8

Metals & Mining

Bhushan Steel Neutral 445 - 9,446 9,232 13,557 30.8 31.1 48.0 58.6 9.3 7.6 1.2 1.0 14.5 7.5 3.2 2.2

Coal India Accumulate 322 351 203,261 65,654 71,756 26.8 27.3 24.0 26.3 13.4 12.2 3.7 3.0 30.4 27.0 2.1 1.8

Electrosteel Castings Buy 19 27 650 1,984 2,074 10.6 12.0 2.7 3.3 7.0 5.7 0.3 0.1 5.2 6.2 0.4 0.4

Hind. Zinc Buy 119 139 50,302 13,043 14,223 51.8 52.8 14.8 16.6 8.0 7.2 1.6 1.3 21.2 19.9 2.1 1.5

Hindalco Neutral 115 - 21,922 84,652 88,766 9.6 10.5 17.0 18.9 6.7 6.1 0.6 0.6 9.7 9.8 0.5 0.5

JSW Steel Accumulate 622 663 13,877 39,592 44,910 18.0 17.7 74.7 88.9 8.3 7.0 0.8 0.7 10.7 11.6 0.7 0.7

MOIL Reduce 275 255 4,628 979 1,061 45.7 46.8 24.5 26.6 11.3 10.4 1.7 1.6 16.1 15.8 2.6 2.2

Monnet Ispat Buy 415 593 2,669 3,115 3,748 22.1 25.1 59.1 66.8 7.0 6.2 1.0 0.9 15.6 15.3 1.6 1.2


May 30, 2012

Market Outlook

Stock Watch



Metals & Mining

Nalco Reduce 58 51 14,987 8,276 8,578 12.7 16.4 2.5 3.5 22.9 16.6 1.3 1.2 5.6 7.5 1.4 1.4

NMDC Accumulate 167 185 66,330 11,726 12,890 77.8 78.4 18.6 20.6 9.0 8.1 2.1 1.8 26.1 23.8 3.5 3.0

SAIL Accumulate 93 102 38,476 52,461 62,935 18.0 18.8 13.2 14.5 7.1 6.4 0.8 0.8 12.4 12.3 1.1 1.0

Sesa Goa Accumulate 185 206 16,096 9,067 9,316 35.7 35.5 44.5 44.3 4.2 4.2 0.9 0.8 23.5 19.5 0.4 0.1

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 416 499 40,383 143,088 148,011 10.9 12.1 53.9 66.0 7.7 6.3 0.9 0.8 12.2 13.4 0.6 0.6

Oil & Gas

Cairn India Accumulate 336 372 64,120 15,513 16,074 74.0 69.7 51.1 48.6 6.6 6.9 1.1 1.0 18.3 14.8 3.0 2.2

GAIL Buy 330 392 41,809 50,472 55,503 15.3 15.6 35.4 37.0 9.3 8.9 1.6 1.4 18.7 17.0 0.5 0.4

ONGC Buy 256 319 219,320 148,157 150,563 37.6 39.5 31.0 33.6 8.3 7.6 1.5 1.3 18.8 18.1 1.1 1.0

Reliance Industries Buy 702 872 229,792 325,734 328,669 10.9 11.7 65.8 70.1 10.7 10.0 1.1 1.0 11.9 11.5 0.7 0.7

Pharmaceuticals

Alembic Pharma Buy 50 91 939 1,624 1,855 14.2 15.6 6.6 9.1 7.6 5.5 1.8 1.4 27.5 29.2 0.8 0.7

Aurobindo Pharma Buy 111 175 3,217 5,243 5,767 14.6 14.6 13.8 14.7 8.0 7.5 1.0 0.4 11.4 10.9 1.0 0.8

Aventis* Neutral 2,064 - 4,753 1,482 1,682 15.5 15.5 95.0 104.0 21.7 19.8 3.9 3.0 18.6 17.0 3.0 2.6

Cadila Healthcare Buy 732 953 14,994 6,196 7,443 18.5 19.5 43.3 50.8 16.9 14.4 4.4 3.5 25.4 24.8 2.4 1.9

Cipla Buy 311 379 24,951 7,687 8,804 21.4 21.4 16.5 18.9 18.8 16.4 2.9 2.6 16.7 16.8 3.2 2.7

Dr Reddy's Neutral 1,701 - 28,834 10,696 11,662 20.7 21.0 83.7 92.9 20.3 18.3 4.2 3.6 22.4 21.0 2.8 2.5

Dishman Pharma Buy 54 92 433 1,280 1,536 17.8 17.8 9.2 11.3 5.8 4.8 0.4 0.4 7.7 8.5 1.0 0.8

GSK Pharma* Neutral 1,992 - 16,871 2,651 2,993 31.7 31.2 76.0 82.4 26.2 24.2 7.5 6.6 30.8 29.0 5.4 4.7

Indoco Remedies Buy 56 665 514 685 837 15.2 15.2 55.5 66.5 1.0 0.8 0.2 0.1 16.4 16.9 0.9 0.9

Ipca labs Buy 323 443 4,060 2,907 3,541 21.5 21.5 32.4 40.6 10.0 8.0 2.5 2.0 27.8 27.7 1.5 1.2

Lupin Buy 531 646 23,728 8,426 10,082 19.7 20.0 29.7 32.4 17.9 16.4 4.7 3.7 27.0 25.2 2.7 2.2

Orchid Chemicals Buy 122 178 860 2,117 2,434 17.7 17.7 16.7 22.2 7.3 5.5 0.7 0.6 9.5 11.5 1.1 0.9

Ranbaxy* Neutral 536 - 22,606 12,046 11,980 18.0 15.8 35.7 29.8 15.0 18.0 5.6 4.6 43.1 28.1 1.9 1.8

Sun Pharma Accumulate 566 634 58,257 9,272 11,080 40.3 36.3 26.7 28.8 21.2 19.6 4.3 3.7 22.1 20.8 5.6 4.6

Power

CESC Buy 269 342 3,360 5,084 5,512 24.2 23.8 45.2 48.5 6.0 5.5 0.6 0.6 11.2 10.9 1.1 1.1

GIPCL Buy 62 98 938 1,557 1,573 28.7 27.5 10.4 10.2 6.0 6.1 0.6 0.6 10.5 9.6 1.1 0.9

NTPC Accumulate 145 158 119,724 74,766 86,549 23.1 23.4 12.4 14.1 11.7 10.3 1.5 1.3 13.0 13.5 2.3 2.1

Real Estate

Anant Raj Buy 47 78 1,378 657 875 52.0 56.1 8.4 12.7 5.6 3.7 0.3 0.3 6.3 8.9 3.4 2.5

DLF Neutral 188 - 31,947 9,878 12,033 44.7 46.1 9.6 13.4 19.6 14.0 1.2 1.2 6.4 8.7 5.7 4.7


May 30, 2012

Market Outlook

Stock Watch



Real Estate

HDIL Buy 67 115 2,801 2,441 3,344 53.0 46.7 21.4 25.4 3.1 2.6 0.3 0.2 8.4 9.1 3.0 2.3

Telecom

Bharti Airtel Neutral 300 - 113,907 80,967 88,684 33.1 33.4 17.9 22.0 16.8 13.6 1.9 1.7 11.5 12.5 2.1 1.8

Idea Cellular Neutral 78 - 25,780 22,558 25,326 26.4 27.5 3.2 4.7 24.2 16.4 1.8 1.6 7.5 10.0 1.6 1.4

Rcom Neutral 66 - 13,612 21,899 23,740 32.7 32.7 4.2 6.7 15.6 9.9 0.3 0.3 2.1 3.2 2.0 1.7

zOthers

Bajaj Electrical Buy 197 245 1,963 3,670 4,384 8.5 8.5 18.3 22.3 10.7 8.8 2.4 2.0 23.9 24.3 0.5 0.5

CRISIL Neutral 1,058 - 7,420 982 1,136 34.3 34.3 34.3 40.0 30.8 26.5 13.9 11.2 50.9 46.9 7.1 6.0

Finolex Cables Buy 37 61 565 2,334 2,687 8.8 9.3 7.6 10.2 4.8 3.6 0.6 0.5 13.7 16.1 0.2 0.1

Graphite India Buy 91 124 1,778 2,158 2,406 18.1 18.9 12.4 14.0 7.3 6.5 1.0 0.9 14.0 14.3 1.0 0.8

Greenply Buy 214 298 516 1,800 2,047 11.1 11.6 34.1 49.6 6.3 4.3 1.2 0.9 20.2 23.7 0.5 0.4

Page Industries Neutral 3,177 - 3,543 935 1,168 19.6 19.6 99.7 122.2 31.9 26.0 18.5 14.8 64.2 63.1 3.9 3.1

Sintex Buy 55 129 1,503 4,751 5,189 16.3 16.6 13.6 15.8 4.0 3.5 0.5 0.5 13.1 13.4 0.7 0.5

Siyaram Silk Mills Buy 263 439 246 1,042 1,173 12.4 12.5 66.3 78.5 4.0 3.4 0.8 0.6 21.1 20.8 0.5 0.4

SpiceJet Neutral 33 - 1,601 5,384 6,443 (1.0) 4.1 (3.4) 2.4 (9.7) 13.8 (13.4) 28.2 - - 0.5 0.4

Taj GVK Buy 60 108 377 300 319 35.8 36.2 7.9 9.1 7.6 6.6 1.0 0.9 13.9 14.4 1.6 1.3

Goodyear Accumulate 334 372 771 1,571 1,753 7.2 8.6 29.8 42.4 11.2 7.9 2.1 1.8 20.2 24.3 0.3 0.2

HEG Buy 208 242 832 1,746 1,946 16.5 17.7 22.5 32.9 9.2 6.3 0.9 0.9 10.4 14.2 1.1 1.1

Hitachi Buy 123 160 283 857 968 6.9 8.4 10.2 16.0 12.2 7.7 1.5 1.3 12.9 17.8 0.4 0.4

Honeywell Automation Neutral 2,756 - 2,436 1,542 1,739 9.4 10.0 116.1 140.8 23.7 19.6 3.4 2.9 15.5 15.9

Ineos ABS Neutral 747 - 1,314 900 1,011 10.2 11.5 35.6 45.7 21.0 16.4 3.0 2.6 15.4 17.2

ITD Cementation Neutral 225 - 259 1,535 1,842 11.1 11.1 27.3 38.3 8.3 5.9 0.6 0.6 7.9 10.2 0.6 0.6

MRF Buy 11,058 13,106 4,690 12,390 14,400 10.4 11.3 1,334.6 1,638.2 8.3 6.8 1.6 1.3 16.5 17.4 0.6 0.5

Relaxo Accumulate 449 478 539 1,019 1,208 11.0 10.8 44.9 53.1 10.0 8.5 2.4 1.9 27.2 25.0 0.7 0.6

Tata Sponge Buy 283 420 436 757 875 19.0 19.1 63.5 72.9 4.5 3.9 0.7 0.6 16.1 16.1 0.2 -

TVS Srichakra Buy 329 462 252 1,612 1,827 9.5 9.8 72.3 92.5 4.6 3.6 1.3 1.0 33.1 32.1 0.4 0.3

Vesuvius India Neutral 373 - 758 621 711 15.3 15.5 27.3 32.4 13.7 11.5 2.2 1.9 17.2 17.6 1.0 0.9

Abbott India Accumulate 1,455 1,628 3,092 1,661 1,918 9.7 12.0 60.7 90.4 24.0 16.1 4.9 4.0 22.0 27.3 1.6 1.4

Cera Sanitaryware Ltd Buy 250 288 316 385 444 17.2 17.4 28.9 32.0 8.7 7.8 1.8 1.5 23.4 21.1 1.0 0.9

Jyothy Laboratories Buy 219 268 1,762 1,315 1,568 8.6 11.1 6.4 10.9 34.3 20.1 2.9 2.7 8.4 13.9 1.6 1.4

Force Motors Buy 459 680 599 2,346 2,753 6.7 7.0 50.9 61.9 9.0 7.4 0.5 0.5 5.5 6.3 0.2 0.2

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on May 29, 2012


May 30, 2012

Market Outlook

Stock Watch


May 30, 2012

Market Outlook

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