market outlook, 26-07-2013
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Market OutlookJuly 26, 2013
Dealers Diary
Indian markets are expected to open in the green today tracking a positive opening
in SGX Nifty, which is trading higher by 0.3%. Most of the other Asian markets, too,
are trading in the positive territory.
US markets rose higher on Thursday with the major indices posting gains in the
range of 0.1% to 0.7%. The upmove in Nasdaq was aided by the surge in shares
of Facebook which rose by 29.6% after the company posted better than expected
results. On the economic front, the Commerce Department released a report
showing a better than expected increase in durable goods orders in June.
Separately, the Labor Department released another report showing that initial
jobless claims rose slightly more than expected in the week ended July 20th.
European markets fell on Thursday reacting to earnings reports from Eurozone.
Indian shares fell sharply on Thursday on the settlement day of near-month F&O
contracts after the investors turned wary of the upcoming monetary policy meet
next week.
Markets Today
The trend deciding level for the day is 19,893/ 5,932 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 20,022 20,240 / 5,967 6,026 levels. However, if NIFTY trades below
19,893 / 5,932 levels for the first half-an-hour of trade then it may correct up to
19,676 19,546 / 5,872 5,837 levels.
Indices S2 S1 PIVOT R1 R2SENSEX 19,546 19,676 19,893 20,022 20,240
NIFTY 5,837 5,872 5,932 5,967 6,026
News Analysis
DLF to sell 74% stake in DLF Pramerica Life Insurance to Dewan HousingFinance
High Court of Madras approves Sterlite Industries amalgamation Zydus Cadila enters into an partnership with US-based Infectious Disease
Research Institute (IDRI) Result Review: ITC, Maruti Suzuki, GAIL, Sterlite Industries, ACC, Thermax,
MRF, IOB, FAG Bearings, TTK Healthcare Result Preview: Hindustan Unilever, Wipro, Nestle India, PNB, BOI, JK Lakshmi
CementRefer detailed news analysis on the following page
Net Inflows (July 24, 2013)` cr Purch Sales Net MTD YTDFII 2,870 3,261 (391) (6,157) 65,149
MFs 440 397 44 (940) (13,117)
FII Derivatives (July 25, 2013)
` cr Purch Sales Net Open InterestIndex Futures 7,197 6,864 333 12,561
Stock Futures 8,818 8,936 (118) 24,647
Gainers / Losers
Gainers LosersCompany Price (`) chg (%) Company Price (`) chg (%)
Zee Entert 260 6.3 Ambuja Cements 171 (10.5)
Apollo Tyres 69 4.6 Jaiprakash Asso 43 (8.9)
JSW Energy 44 4.6 Central Bank 57 (8.2)
IPCA Lab 658 4.5 JP Power 13 (7.9)
Adani Power 41 4.4 GMR Infra 16 (6.8)
Domestic Indices Chg (%) (Pts) (Close)BSE Sensex (1.4) (286) 19,805
Nifty (1.4) (83) 5,908
MID CAP (0.9) (52) 5,837
SMALL CAP (0.7) (40) 5,562
BSE HC (1.6) (152) 9,164
BSE PSU (1.2) (71) 5,785
BANKEX (0.9) (114) 12,124
AUTO 0.1 15 10,714
METAL (1.7) (127) 7,233
OIL & GAS (1.4) (122) 8,895
BSE IT (0.1) (10) 7,245
Global Indices Chg (%) (Pts) (Close)Dow Jones 0.1 13 15,556NASDAQ 0.7 26 3,605
FTSE (0.5) (32) 6,588
Nikkei (1.1) (168) 14,563
Hang Sang (0.3) (68) 21,901
Straits Times (1.2) (39) 3,236
Shanghai Com (0.6) (12) 2,021
Indian ADR Chg (%) (Pts) (Close)INFY 0.8 0.4 $50.0
WIT 0.9 0.1 $8.2IBN 0.9 0.3 $35.0
HDB 0.1 0.0 $36.0
Advances / Declines BSE NSEAdvances 827 420
Declines 1,444 891
Unchanged 172 81
Volumes (` cr)BSE 2,144
NSE 14,318
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Market OutlookJuly 26, 2013
DLF to sell 74% stake in DLF Pramerica Life Insurance toDewan Housing Finance
DLF has signed a definitive agreement to sell its 74% equity stake in its the Life
Insurance Joint Venture - DLF Pramerica Life Insurance Company to Dewan
Housing Finance Corporation ("DHFL") & its group entities. As per the company,the transaction of the sale value would be disclosed post receipt of all approvals. We continue to maintain Buy rating on the stock with a target price of `236.
High Court of Madras approves Sterlite Industriesamalgamation
The Honorable High Court of Madras has approved the scheme of Amalgamation
and Arrangement amongst Sterlite Industries (Sterlite), Madras Aluminium
Company, Sterlite Energy, Vedanta Aluminium and Sesa Goa and their respective
shareholders and creditors, to create a new entity Sesa Sterlite. The High court ofBombay at Goa had given its approval in April 2013. Sterlite and Sesa had
proposed the merger during February 2012.The merger has been approved byshareholders. We continue to value Sterlite considering the merged entity and Buyrating on the stock with a SOTP-based target price of `100.
Zydus Cadila enters into an partnership with US-based Infectious Disease Research Institute (IDRI)Zydus Cadila Healthcare, has entered into an partnership with US-basedInfectious
Disease Research Institute(IDRI) a non-profit research and product development
organization, to collaborate on the production and clinical development of
IDRI's visceral leishmaniasis (VL) vaccine candidate, designed to prevent the
deadly parasitic disease,known as Kala-Azar in India.Visceral Leishmaniasis (VL) is
transmitted by the bite of an infected sand fly. There are over 500,000
new VL cases and 50,000 associated deaths each year. VL is the most severe form
of leishmaniasis, affecting vital organs, and, if left untreated, the disease can be
fatal. This is positive step for the companys R&D initiatives and since it doesnt
change our estimates, we maintain our buy with a target price of `929.
Result Review
ITC (CMP:`359/TP:-/Upside:-)
For 1QFY2014 ITC posted in-line results on the bottom-line front, with net profit
coming at`1,892cr (up 18% on yoy basis). Topline rose by 10.3% yoy to`7,338cr.
Cigarettes business posted a top-line growth of 7.1% yoy, while the growth in other
FMCG business stood at 18.4% yoy. Agri-business continued to post impressive
performance with a top-line growth of 29.4%. Performance of Hotels business
continued to remain muted with a top-line growth of 7.5% yoy. OPM rose by
237bp on yoy basis to 37.1% aided by higher margins in cigarettes business.
However, other FMCG business posted a loss of `19cr (profit of `12cr in
4QFY2013) in the quarter. We maintain our Neutral view on the stock.
http://economictimes.indiatimes.com/topic/Zydus-Cadilahttp://economictimes.indiatimes.com/topic/Zydus-Cadila -
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Market OutlookJuly 26, 2013
Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 34,294 36.8 8,909 21.3 36.1 31.8 10.5 21.3 7.8
FY2015E 39,991 37.0 10,543 17.9 34.9 26.9 8.5 17.9 6.6
Maruti Suzuki (CMP:`1,414/ TP: Under Review/ Upside: -)For 1QFY2014, Maruti Suzuki (MSIL) reported in-line results on the operating
front; however net profit was lower than our estimates on account of higher
depreciation expense (due to SPIL merger) and also due to higher tax rate (at
25.3% as against expectations of 21%). The quarterly results are not comparable
on a yoy as well as sequential basis as 1QFY2014 results reflect the impact of the
consolidation of Suzuki Power Train India (SPIL) operations.
The top-line for the quarter declined 5.1% yoy to`10,237cr and was in-line with
our estimates of `10,284cr. The top-line performance was aided by a strong
growth of 5.4% yoy in net average realization driven by better product-mix and
price increases partially offset by higher discounts. Volumes however posted a
decline of 10% yoy due to slowdown in demand in the domestic (down 6.8% yoy)
as well as export (down 35.4% yoy) markets. On the operating front, EBITDA
margins stood at 11.4% (significant expansion of 410bp yoy), in-line with our
estimates, largely led by favorable impact of forex movement and also supported
by the ongoing cost reduction initiatives and re-distribution of expenses owing to
the SPIL merger. As a result, net profit surged 49% yoy to `632cr. We shall release
a detailed result note soon. Our rating is currently Under Review.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 47,923 11.2 3,220 106.6 16.1 13.3 2.0 7.5 0.7FY2015E 55,002 10.9 3,667 121.4 15.8 11.7 1.7 6.6 0.6GAIL (CMP:`326/TP:-/Upside :-)
GAILs 1QFY2014 profitability performance was lower than our expectation due to
higher than expected subsidy burden. The companys top line grew by15.9% yoy
to `12,856cr (above our estimate of `12,296cr) mainly due to better than
expected performance from Petrochemicals and Natural gas trading segment
which grew by 92.2% and 19.7% yoy to `1,103cr and`11,058cr respectively. Thecompanys fuel subsidy burden stood at `700cr in 1QFY2014, compared to
`700cr in 1QFY2013 and `587cr in 4QFY2013. The petrochemical segments
EBIT grew by 123.8% yoy to`438cr. However, natural gas trading EBIT decreased
39.0% to `303cr and the LPG segment reported a loss of `11cr in 1QFY2014
compared to a profit of `437cr in 1QFY2013. GAILs EBITDA therefore declined
by 22.9% yoy to`1,464cr in 1QFY2014 and EBITDA margin contracted by 574bp
yoy to 11.4%. The tax rate also increased to 34.0% in 1QFY2014 compared to
32.7% in 1QFY2013 and therefore the companys net profit decreased by 28.7%
yoy to`808cr (below our estimate of `918cr). We maintain our Neutral view onthe stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 52,102 15.7 4,322 34.1 16.4 9.6 1.5 4.4 0.7
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Market OutlookJuly 26, 2013
FY2015E 52,876 16.1 4,527 35.7 15.2 9.1 1.3 3.8 0.6
Sterlite Industries (CMP:`80, TP:`100, Upside: 25%)
Sterlite Industries (Sterlite) reported lower than expected 1QFY2014 results on both
top line and net profit front. Net sales declined 22.7% yoy to`8,190cr (below our
estimate of`8,372cr). Net sales decline was mainly in the copper segment due to
temporary shutdown of the Tuticorin copper smelter in this quarter which was
partially offset by higher revenues from power segment due to higher power sales
from the Jharsuguda power plant. Copper segment revenues declined 52.3%yoy
to `2,446cr. On the operating front, Sterlites EBITDA declined 5.9% yoy to
`2,173cr and EBITDA margin was 26.5% (below our estimate of 28.6%) mainly
due loss of `51cr and `26cr in the copper and aluminium segment respectively
and hence adjusted net profit decreased by 18.0% yoy to `1,164cr, which was
below our estimate of `1,198cr. We maintain our Buy rating on the stock with atarget price of `100.Y/E Sales OPM PAT EPS ROE P/E P/BVEV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 44,493 22.4 5,875 17.5 10.9 4.6 0.5 2.0 0.4
FY2015E 45,599 23.9 6,570 19.5 11.1 4.1 0.4 1.6 0.4
ACC (CMP:`1,194/TP:`1,361/Upside: 14%)
ACCs 2QCY2013 results were marginally below expectations on the
bottom-line front. The company posted a stand-alone net profit of`259cr for the
quarter down 37.9% on yoy basis. The companys top-line rose by 1.4% on yoy
basis to`2,795cr, with the volumes increasing by 1.2% on a yoy basis. OPM stood
at 17.2% down 725bp on yoy basis. Poor operational performance and lower
other income resulted in the steep fall in bottom-line. We maintain an Accumulaterating on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/tonne*Dec (` cr) (%) (` cr) (`) (%) (x) (x) (x) (US $)CY2013E 11,593 19.3 1,407 74.9 18.1 16.4 2.8 8.8 106
CY2014E 13,026 20.9 1,749 93.1 20.3 13.2 2.6 6.9 -
Note: Computed on TTM basis
Thermax (CMP:`602/TP: -/Upside: - )
For 1QFY2014, Thermaxs top-line and bottom-line performance were below our
expectations as well as street estimates. The company reported 12.3% yoy decline
in top-line to `863cr (our estimate of `944cr), mainly due to slow execution in
energy segment (segmental revenue down by 17.2% yoy to `634cr). On the
operating front, OPM contracted by 36bp yoy to 9.4% (our estimate of 9.8%) on
account of appreciation in cost of raw materials (due to rupee depreciation).
Falling revenue and margin contraction led to yoy fall of 25.2% in the company's
PAT to`50cr. Order intake for the company is likely to remain muted as not many
large orders are expected to be finalized during FY2014, thereby limiting revenue
visibility. Hence, we maintain our Neutral rating on the stock.
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Market OutlookJuly 26, 2013
Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 5,780 9.5 355 29.8 17.9 20.2 3.4 11.5 1.0
FY2015E 6,430 9.6 393 33.0 17.4 18.2 3.0 10.2 1.0
MRF (CMP:`13,815/ TP: -`16,218/ Upside: -17.4%)
For 3QSY2013, MRF reported a good set of numbers. Top-line grew by 1.4% yoy
to`3,051cr. However, EBITDA margins expanded by 506bp yoy to 15.8% due to
fall in rubber prices to a two year low during the quarter. This led the net profit to
surge by 57.2% in 3QSY2013 to`227cr from`145cr in 3QSY2012. Slowdown in
auto demand has led the tyre companies to cut prices, which will impact the MRFs
top-line in the short term. However, lower international rubber prices are likely to
help in maintaining margins. Hence, we expect MRFs bottom-line to post a 15.5%
CAGR over SY2012-14E to `764cr in SY2014E. At the current market price, the
stock is trading at a PE of 7.7x for SY2014E and P/B of 1.3x for SY2014E. Werecommend Buy rating on the stock with a target price of `16,218, based on atarget P/E of 9.0x for SY2014E.Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/salesSept (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)SY2013E 11,799 14.1 760.0 1,793 23.5 7.7 1.6 4.6 0.6SY2014E 12,587 13.5 764.1 1,802 19.2 7.7 1.3 4.2 0.6
Indian Overseas Bank- (CMP:`46 / TP: - / Upside: -)
Indian Overseas Bank reported weak set of numbers for the quarter, dragged byasset quality pressures. NII for bank de-grew by 0.9% yoy. Other income grew by
108.3% yoy primarily boosted by trading gains, thereby aiding pre-provisioning
profit growth of 24.5% yoy. On the asset quality front, Gross and Net NPA levels
jumped up sequentially by 12.5% and 13.7%, respectively, on an already large
base. Consequently, the provisioning expenses for the bank increased 62% yoy,
thereby resulting in earnings de-growth of 46.1% yoy. At CMP stock trades at 0.3x
FY2015E ABV. We maintain Neutral recommendation on the stock.Y/E Op. Inc NIM PAT EPS ABV ROA ROE P/E P/ABVMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 7,709 2.2 759 8.2 122.6 0.3 6.0 5.6 0.4FY2015E 8,645 2.3 1,582 17.1 137.3 0.5 11.7 2.7 0.3
FAG Bearings (CMP:`1,433/ TP: -/ Upside: -)
FAG Bearings (FAG) reported weak results for 2QCY2013, which were lower than
our expectations on account of continued slowdown in automobile production and
industrial activity. However, operating margins for the quarter came in ahead of
our expectations largely due to easing of commodity cost pressures.
For 2QCY2013, top-line posted a significant decline of 18% yoy at`312cr, which
was lower than our expectations of`334cr. The top-line performance continued tobe impacted by the slowdown in the automotive and industrial sectors which are
the keydrivers of the companys revenue. The operating profit too fell significantly
by 34.9% yoy as EBITDA margins witnessed a sharp contraction of 345bp yoy to
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Market OutlookJuly 26, 2013
13.4%. While, the raw-material cost as a percentage of sales declined by 513bp
yoy; other expenditure and employee expenses as a percentage of sales surged
570bp and 290yoy respectively. This we believe could be due to lower utilization
levels. On a sequential basis though, operating margins expanded by 116bp and
were ahead of our expectations of 12.5% primarily on account of the savings on
the raw-material front. As a result the operating profit remained flat sequentiallydespite an 8.3% qoq decline in the top-line. Net profit for the quarter stood at
`26cr (down 44.7% yoy and flat qoq) and came in lower than our expectations of
`29cr. At`1,445, the stock is trading at 13x CY2014 earnings, which is broadly
in-line with its historical average. We maintain our Neutral rating on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesDec. (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)CY2013E 1,525 14.5 14788.4 15.5 16.2 2.4 9.5 1.4CY2014E 1,742 15.7 182109.5 16.5 13.1 2.0 7.4 1.2
TTK Healthcare(CMP: `598/ TP: 632/ Upside: 5.5%)TTKH reported a disappointing set of numbers for 1QFY2014. Topline came flat at
`109cr as compare to`108cr in 1QFY2013. The EBITDA margin for the quarter
contracted by 370bp yoy to 2.9% primarily due to increase in employee cost and
other expenses by 22.2% and 26.7% respectively as compared to 1QFY2013. The
margin contraction was attributable to loss of `2cr in the consumer products
division. Consequently, net profit declined by 58.2% to`2cr in 1QFY2014.
Contraction in consumer product division is due to restructuring of condom
business. However, we believe this restructuring process will reap benefits from
next year. We also expect the EBITDA margin to expand on account of increasing
contribution from high margin business like food business, thus resulting in better
profit. At the current market price, the stock is trading at EV/sales of 0.9x for
FY2015E. Hence, we recommend an Accumulate recommendation on the stockwith a target price of `632.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 416 4.5 13 16.2 12.6 36.9 4.5 21.7 1.0
FY2015E 481 6.1 20 25.3 18.1 23.6 4.0 14.0 0.9
Result Preview
Hindustan Unilever (CMP:`687/TP:-/Upside:-)
Hindustan Unilever is scheduled to declare its 1QFY2014 results today. We expect
the top-line to grow by 11.1% yoy to `6,942cr. OPM is expected to decline by
41bp yoy to 13.0%. Bottom-line is expected to increase by 17.2% yoy to `852cr.
We maintain our Neutral recommendation on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/salesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 29,167 13.6 3,695 17.1 113.4 40.2 38.6 36.4 5.0
FY2015E 33,164 13.7 3,978 18.4 87.0 37.3 28.0 31.6 4.3
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Market OutlookJuly 26, 2013
grow by 14.5% yoy at`758cr. At the CMP, the stock trades at valuations of 0.5x
FY2015E ABV.We maintain our Accumulate recommendation on the stock.Y/E Op. Inc NIM PAT EPS ABV ROA ROE P/E P/ABVMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 14,459 2.3 3,294 55.2 391.8 0.7 13.7 3.5 0.5FY2015E 16,176 2.2 4,069 68.2 449.8 0.7 15.1 2.8 0.4
JK Lakshmi Cement (CMP:`71/TP:143/Upside:-101%)
JK Lakshmi Cement is expected to post its 1QFY2014 results. We expect the topline
to decline by 5.8% yoy to `502cr. OPM is expected to decline by 49bp yoy to
22.3%. Bottom-line is expected to remain flat at`50cr. We maintain a Buy on thestock with a target Price of `143.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/tonne*Mar (` cr) (%) (` cr) (`) (%) (x) (x) (x) (US $)FY2014E 2,278 20.5 209 17.7 15.4 4.4 0.6 2.1 30
FY2015E 2,789 22.6 261 22.2 16.6 3.5 0.5 3.9 -
Note: Computed on TTM basis
Quarterly Bloomberg Consensus Estimate
Bank of India (26/07/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net profit 784 888 (11.6) 757 3.6
Nestle India (26/07/2013)Particulars (` cr) 2QCY13E 2QCY12 y-o-y (%) 1QCY13 q-o-q (%)Net sales 2,208 1,987 11.1 2,248 (1.8)
EBITDA 491 440 11.6 540 (9.0)
EBITDA margin (%) 22.3 22.2 24.0
Net profit 278 246 13.1 279 (0.3)
Punjab National Bank (26/07/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net profit 1,204 1,246 (3.4) 1,131 6.4
Wipro Consolidated (26/07/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 9,940 10,620 (6.4) 9,613 3.4
EBITDA 1,996 1,973 1.2 1,974 1.1
EBITDA margin (%) 20.1 18.6 20.5
Net profit 1,628 1,580 3.0 1,729 (5.8)
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Hindustan Unilever (26/07/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 7,007 6,250 12.1 6,367 10.1
EBITDA 1,080 977 10.6 972 11.1
EBITDA margin (%) 15.4 15.6 15.3
Net profit 865 729 18.7 787 9.9
Colgate (29/07/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 864 736 17.4 812 6.4
EBITDA 179 163 9.8 169 5.9
EBITDA margin (%) 20.7 22.1 20.8
Net profit 133 117 13.7 123 8.1
Godrej Consumer Products Consolidated (29/07/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 1,734 1,389 24.8 1,716 1.0
EBITDA 260 202 28.7 279 (6.8)
EBITDA margin (%) 15.0 14.5 16.3
Net profit 169 131 29.0 334 (49.4)
IDFC Consolidated (29/07/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net profit 465 380 22.4 526 (11.6)
Jaiprakash Associates (29/07/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 3,273 2,964 10.4 3,864 (15.3)
EBITDA 770 816 (5.6) 894 (13.9)
EBITDA margin (%) 23.5 27.5 23.1
Net profit 121 139 (12.9) 124 (2.4)
Reliance Capital Consolidated (29/07/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net profit 83 45 84.4 265 (68.7)
Ultratech Cement (29/07/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 5,038 5,075 (0.7) 5,389 (6.5)
EBITDA 1,115 1,308 (14.8) 1,282 (13.0)
EBITDA margin (%) 22.1 25.8 23.8
Net profit 627 778 (19.4) 726 (13.6)
Economic and Political News
PowerMin seeks urgent solution on fuel for USD 21 bn worth power projects
India sells cash management bills at lower-than-expected cut-off yields PMO sets deadline for infra projects in first steering committee meet
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Corporate News
Jet-Etihad deal hits SEBI, DIPP roadblocks Wockhardt to appoint consultant at plant for US FDA compliance Sebi puts rider on Jets stake sale plan to Etihad JSW Energy eyes overseas coal assets to boost fuel security
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
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Date Company
July 26, 2013 Wipro, HUL, Nestle, Punjab Natl.Bank, Bank of India, Tata Comm, CESC
July 27, 2013 Corporation Bank, Areva, Electrosteel Castings, Relaxo, Force Motors
July 28, 2013
July 29, 2013
UltraTech Cement, IDFC, Jaiprakash Asso., Colgate, Godrej Consumer, Indian Bank, Reliance Capital, Allahabad
Bank, Syndicate Bank, Vijaya Bank, Madras Cements, Subros, Vesuvius IndiaJuly 30, 2013 NTPC, Jindal Steel, Dr Reddy's, Reliance Power, Petronet LNG, Reliance Infra., Ipca labs, Indoco Remedies
July 31, 2013Bharti Airtel, ICICI Bank, NHPC, HCL Tech, JSW Steel , United Spirits, Motherson Sumi, Andhra Bank, JagranPrakashan, Dishman Pharma, HSIL
August 01, 2013J & K Bank, Power Grid Corpn, Idea Cellular, Mundra Port, Bank of Baroda, Canara Bank, Titan Inds., Adani Power,Rcom, Union Bank, Cummins India, GlaxoSmith Con, Glenmark Pharma., Tata Global
August 02, 2013 Siemens, Power Fin.Corpn., Sun TV Network, Suzlon Energy
August 03, 2013 Coal India, BHEL, Grasim Inds, Divi's Lab., Oriental Bank, PTC India
August 04, 2013
August 05, 2013 Tata Chemicals, LMW, GIPCL
August 06, 2013 Tata Power Co., Bosch India, Crompton Greaves
August 07, 2013 Tata Motors, Ranbaxy, Lupin, GSK Pharma, Cadila Healthcare, Gujarat Gas, Apollo Tyres, Nagarjuna Const.
August 08, 2013 Adani Enterp., Rural Elec.Corp., Bharat Forge, ITNL, Page Industries
August 09, 2013 Sun Pharma, ABB, TVS Motor
Source: Bloomberg, Angel Research
Result Calendar
Global economic events release calendar
Date Time Country Event Description Unit Period Bloomberg Data
Last Reported Estimated
July 30, 2013 11:00AM India RBI Repo rate % Jul 30 7.25 7.25
11:00AM India RBI Cash Reserve ratio % Jul 30 4.00 4.00
11:00AM India RBI Reverse Repo rate % Jul 30 6.25 6.25
7:30PM US Consumer Confidence S.A./ 1985=100 Jul 81.40 81.00
July 31, 2013 1:25PM Germany Unemployment change (000's) Thousands Jul (12.00) --
6:00PM US GDP Qoq (Annualised) % Change 2Q A 1.80 1.30
11:30PM US FOMC rate decision % Jul 31 0.25 0.25
August 1, 2013 6:30AM China PMI Manufacturing Value Jul 50.10 --
2:00PM UK PMI Manufacturing Value Jul 52.50 --
4:30PM UK BOE Announces rates % Ratio Aug 1 0.50 0.50
5:15PM Euro Zone ECB announces interest rates % Aug 1 0.50 0.50
August 2, 2013 6:00PM US Change in Nonfarm payrolls Thousands Jul 195.00 179.00
6:00PM US Unnemployment rate % Jul 7.60 7.50
August 6, 2013 2:00PM UK Industrial Production (YoY) % Change Jun (2.30) --August 8, 2013 4:29PM China Exports YoY% % Change Jul (3.10) --
August 9, 2013 7:00AM China Consumer Price Index (YoY) % Change Jul 2.70 --
11:00AM China Industrial Production (YoY) % Change Jul 8.90 --
Source: Bloomberg, Angel Research
July 26, 2013
Market Outlook
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7/27/2019 Market Outlook, 26-07-2013
12/20
Market OutlookJuly 26, 2013
www.angelbroking.com
Macro watch
Exhibit 1:Quarterly GDP trends
Source: CSO, Angel Research
Exhibit 2:IIP trends
Source: MOSPI, Angel Research
Exhibit 3:Monthly WPI inflation trends
Source: MOSPI, Angel Research
Exhibit 4:Manufacturing and services PMI
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Exhibit 5:Exports and imports growth trends
Source: Bloomberg, Angel Research
Exhibit 6:Key policy rates
Source: RBI, Angel Research
9.3
7.7
11.4
9.5
8.69.2
9.9
7.5
6.56.0
5.1 5.4 5.24.7 4.8
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
11.0
12.0
2QFY10
3QFY10
4QFY10
1QFY11
2QFY11
3QFY11
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
(%)
(2.0)
(0.1)
2.0
(0.7)
8.4
(1.0) (0.6)
2.5
0.6
3.4
1.9
(1.6)(4.0)
(2.0)
-
2.0
4.0
6.0
8.0
10.0
Jun-1
2
Ju
l-12
Aug-1
2
Sep-1
2
Oc
t-12
Nov-1
2
Dec-1
2
Jan-1
3
Fe
b-1
3
Mar-
13
Apr-
13
May-1
3
(%)
8.0 8.17.3 7.2 7.3 7.3 7.3
5.7
4.8 4.7 4.9
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Aug-1
2
Sep-1
2
Oc
t-12
Nov-1
2
Dec-1
2
Jan-1
3
Fe
b-1
3
Mar-
13
Apr-
13
May-1
3
Jun-1
3
(%)
48.0
50.0
52.0
54.0
56.0
58.0
Mar-
12
Apr-
12
May-1
2
Jun-1
2
Ju
l-12
Aug-1
2
Sep-1
2
Oc
t-12
Nov-1
2
Dec-1
2
Jan-1
3
Fe
b-1
3
Mar-
13
Apr-
13
May-1
3
Mfg. PMI Services PMI
(15.0)
0.0
15.0
Ju
l-12
Aug-1
2
Sep-1
2
Oc
t-12
Nov-1
2
Dec-1
2
Jan-1
3
Fe
b-1
3
Mar-
13
Apr-
13
May-1
3
Jun-1
3
Exports yoy growth Imports yoy growth(%)
3.00
4.00
5.00
6.00
7.00
8.00
9.00
Aug-1
2
Sep-1
2
Oct-12
Nov-1
2
Dec-1
2
Jan-1
3
Feb-1
3
Mar-13
Apr-13
May-1
3
Jun-1
3
Jul-13
Repo rate Reverse Repo rate CRR (%)
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7/27/2019 Market Outlook, 26-07-2013
13/20
Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E
Agri / Agri Chemical
Rallis Neutral 156 - 3,032 1,674 1,923 13.7 13.7 6.8 7.6 22.9 20.5 4.3 3.8 20.0 19.6 2.0 1.7
United Phosphorus Buy 144 225 6,356 10,091 11,302 16.5 16.5 19.2 22.5 7.5 6.4 1.2 1.0 17.0 17.2 0.8 0.6
Auto & Auto Ancillary
Amara Raja Batteries Accumulate 255 285 4,363 3,418 3,892 14.5 14.5 18.5 20.4 13.8 12.5 3.3 2.7 26.6 23.8 1.3 1.1
Apollo Tyres Neutral 69 - 3,478 13,852 15,487 11.4 11.5 12.8 14.9 5.4 4.6 0.9 0.7 17.5 17.3 0.4 0.4
Ashok Leyland Buy 14 22 3,778 13,450 15,853 6.5 8.5 0.4 1.9 37.1 7.6 1.2 1.1 2.3 11.0 0.4 0.3
Automotive Axle# Neutral 207 - 313 834 965 9.3 10.6 17.3 27.1 12.0 7.7 1.1 1.0 9.5 14.0 0.4 0.4Bajaj Auto Neutral 2,003 - 57,970 21,696 25,239 19.2 19.3 119.3 140.2 16.8 14.3 5.9 4.7 38.9 36.6 2.3 1.9
Bharat Forge Neutral 215 - 5,014 6,198 6,793 14.6 14.9 14.5 17.3 14.8 12.4 1.9 1.7 13.6 14.7 0.9 0.8
Bosch India* Accumulate 8,553 9,213 26,854 9,821 11,394 17.0 17.3 373.5 438.7 22.9 19.5 4.1 3.5 18.0 17.9 2.4 2.0
CEAT Buy 117 170 399 5,325 5,974 8.4 8.3 40.8 48.5 2.9 2.4 0.5 0.4 17.3 17.6 0.2 0.2
Exide Industries Accumulate 130 148 11,046 6,899 7 ,873 14.7 14.7 7.9 9.0 16.4 14.4 2.8 2.4 18.3 18.0 1.3 1.1
FAG Bearings* Neutral 1,433 - 2,381 1,525 1,742 14.5 15.7 88.4 109.5 16.2 13.1 2.4 2.0 15.5 16.5 1.4 1.2
Hero Motocorp Accumulate 1,829 2,049 36,525 25,562 28,297 14.5 14.1 115.2 146.4 15.9 12.5 5.9 4.6 41.3 41.6 1.2 1.0
JK Tyre Buy 102 154 421 7,972 8,754 7.1 7.1 37.5 44.0 2.7 2.3 0.4 0.4 16.4 16.6 0.3 0.3
Mahindra and Mahindra Buy 880 1,103 54,205 45,254 51,197 11.4 11.7 61.2 70.2 14.4 12.5 3.0 2.5 22.7 21.9 0.9 0.8
Maruti Buy 1,414 1,822 42,720 47,923 55,002 11.2 10.9 106.6 121.4 13.3 11.7 2.0 1.7 16.1 15.8 0.7 0.6
Motherson Sumi Accumulate 207 222 12,169 28,442 31,493 7.5 7.8 12.5 14.8 16.6 14.0 4.1 3.3 27.5 25.8 0.6 0.5
Subros Buy 21 27 124 1,426 1,624 10.0 9.9 4.9 6.8 4.2 3.0 0.4 0.4 10.0 12.7 0.4 0.3
Tata Motors Buy 300 347 80,782 215,016 237,404 13.3 13.6 36.2 41.5 8.3 7.2 1.9 1.5 24.6 23.2 0.5 0.4
TVS Motor Accumulate 32 35 1,513 7,715 8,584 6.0 6.1 5.0 5.8 6.4 5.5 1.1 1.0 18.1 18.5 0.1 0.1
Capital Goods
ABB* Sell 546 461 11,564 8,073 9,052 5.5 6.9 11.5 16.9 47.4 32.2 4.3 4.1 9.3 13.1 1.4 1.2BGR Energy Buy 107 140 771 3,756 4,569 11.4 9.7 21.7 24.1 4.9 4.4 0.6 0.5 22.3 20.3 0.5 0.5
BHEL Neutral 159 - 38,819 44,054 39,326 16.8 15.1 20.6 16.1 7.7 9.9 1.7 1.5 23.5 16.1 0.8 0.8
Blue Star Buy 153 230 1,376 2,896 3,087 5.6 6.2 9.3 11.7 16.4 13.1 2.7 2.3 17.6 19.2 0.5 0.5
Crompton Greaves Buy 88 117 5,616 13,446 15,272 6.7 7.6 6.6 8.9 13.2 9.9 1.5 1.3 11.4 14.0 0.5 0.5
Jyoti Structures Neutral 19 - 158 3,360 3,597 9.7 9.8 7.3 10.2 2.6 1.9 0.5 0.5 8.8 11.4 0.3 0.3
KEC International Buy 31 49 788 7,709 8,399 6.7 7.2 6.1 8.5 5.1 3.6 0.6 0.6 20.2 23.0 0.3 0.3
Thermax Neutral 602 - 7,173 5,780 6,430 9.5 9.6 29.8 33.0 20.2 18.2 3.4 3.0 17.9 17.4 1.1 0.9
Cement
ACC Accumulate 1,194 1,361 22,419 11,820 13,254 19.3 20.9 74.9 93.1 16.0 12.8 2.8 2.5 18.1 20.3 1.6 1.4
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Market Outlook
Stock Watch
July 26, 2013
-
7/27/2019 Market Outlook, 26-07-2013
14/20
Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E
Cement
Ambuja Cements Neutral 171 - 26,408 10,171 11,762 23.5 24.6 10.2 12.2 16.8 14.0 2.8 2.5 17.1 18.7 2.1 1.7
India Cements Neutral 53 - 1,619 4,929 5,434 17.4 17.1 8.9 10.9 5.9 4.8 0.5 0.4 7.7 9.1 0.7 0.6
J K Lakshmi Cement Buy 71 143 835 2,247 2,742 21.0 23.1 17.8 21.8 4.0 3.3 0.6 0.5 15.5 16.4 0.3 0.7
Madras Cements Neutral 183 - 4,343 4,234 4,788 23.9 24.0 18.5 22.8 9.9 8.0 1.6 1.4 17.2 18.2 1.4 1.1
Shree Cement^ Neutral 4,421 - 15,400 6,607 7,520 27.5 26.7 322.8 374.3 13.7 11.8 3.4 2.7 27.8 25.6 1.7 1.3
UltraTech Cement Neutral 1,854 - 50,823 21,947 25,049 23.8 23.8 106.1 119.8 17.5 15.5 2.9 2.5 17.7 17.3 2.4 2.1
ConstructionAshoka Buildcon Buy 52 84 821 1,928 2,234 21.0 21.5 6.0 7.4 8.7 7.0 0.8 0.8 10.5 10.8 1.8 1.8
Consolidated Co Neutral 8 - 149 1,715 1,824 2.4 6.2 (2.9) (0.4) (2.8) (22.3) 0.3 0.3 0.5 0.5
IRB Infra Buy 89 157 2,946 3,997 4,312 45.5 46.4 15.7 16.6 5.6 5.3 0.8 0.7 15.2 14.5 3.2 3.4
ITNL Buy 137 230 2,656 7,444 8,041 27.4 28.9 29.8 32.1 4.6 4.3 0.6 0.6 14.9 14.2 2.5 2.5
IVRCL Infra Buy 13 29 391 5,673 5,892 8.1 8.4 1.4 1.8 8.8 7.0 0.2 0.2 2.0 2.6 0.5 0.5
Jaiprakash Asso. Buy 43 90 9,542 14,850 15,631 24.9 25.1 2.5 2.9 17.0 15.1 0.7 0.7 4.2 4.7 2.5 2.4
Larsen & Toubro Buy 854 1,128 78,976 68,946 78,040 10.0 10.0 49.0 55.2 17.4 15.5 2.5 2.3 14.9 15.3 1.3 1.1
Nagarjuna Const. Buy 24 42 620 6,167 6,945 8.0 8.2 2.7 3.6 9.0 6.6 0.3 0.2 2.7 3.6 0.5 0.4
Punj Lloyd Neutral 29 - 956 12,954 14,740 9.9 9.9 0.5 0.9 56.7 30.9 0.3 0.3 0.6 1.1 0.5 0.5
Sadbhav Engg. Buy 83 139 1,257 2,462 2,731 10.6 10.6 5.9 6.7 14.2 12.5 1.4 1.3 10.2 10.5 0.8 0.7
Simplex Infra Buy 70 131 347 6,308 7,033 9.5 9.6 11.9 18.7 5.9 3.8 0.3 0.2 4.5 6.7 0.5 0.5
Unity Infra Buy 22 41 166 2,146 2,339 13.7 13.8 11.0 11.5 2.0 2.0 0.2 0.2 9.3 9.0 0.6 0.6
Financials
Allahabad Bank Buy 79 95 3,930 6,705 7,535 2.5 2.5 27.6 33.2 2.9 2.4 0.4 0.4 12.5 13.6 - -
Andhra Bank Neutral 75 - 4,191 5,180 5,815 2.7 2.7 19.0 22.9 3.9 3.3 0.5 0.5 12.0 13.2 - -
Axis Bank Buy 1,128 1,441 52,898 19,280 22,886 3.3 3.3 130.7 157.1 8.6 7.2 1.4 1.2 17.3 18.1 - -Bank of Baroda Accumulate 582 642 24,534 16,287 18,707 2.2 2.3 120.6 144.6 4.8 4.0 0.7 0.6 15.0 16.0 - -
Bank of India Buy 192 236 11,456 14,459 16,176 2.3 2.2 55.2 68.2 3.5 2.8 0.5 0.4 13.7 15.1 - -
Bank of Maharashtra A ccumulate 48 54 3,145 4,291 4,724 3.0 3.0 12.1 12.9 3.9 3.7 0.6 0.5 16.2 15.3 - -
Canara Bank Neutral 294 - 13,037 12,045 13,495 2.1 2.2 76.7 86.4 3.8 3.4 0.6 0.5 14.1 14.2 - -
Central Bank Neutral 57 - 5,949 8,406 9,546 2.5 2.5 12.6 18.7 4.5 3.0 0.6 0.5 10.6 14.3 - -
Corporation Bank Buy 312 360 4,763 5,554 6,156 2.0 2.0 94.9 104.9 3.3 3.0 0.5 0.4 14.3 14.2 - -
Dena Bank Neutral 61 - 2,142 3,255 3,623 2.3 2.4 22.0 24.9 2.8 2.5 0.4 0.4 14.7 14.7 - -
Federal Bank Neutral 347 - 5,930 2,802 3,275 2.9 2.9 49.8 56.6 7.0 6.1 0.8 0.8 12.7 13.1 - -
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Market Outlook
Stock Watch
July 26, 2013
-
7/27/2019 Market Outlook, 26-07-2013
15/20
Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E
Financials
HDFC Accumulate 801 867 124,555 8,679 10,350 3.6 3.6 37.5 44.7 21.4 18.0 4.5 4.0 30.1 30.7 - -
HDFC Bank Accumulate 654 745 156,271 27,392 33,264 4.6 4.6 36.3 45.1 18.0 14.5 3.6 3.1 21.9 22.8 - -
ICICI Bank Buy 935 1,160 107,956 26,119 30,474 3.1 3.2 86.2 99.5 10.9 9.4 1.5 1.3 15.7 16.2 - -
IDBI Bank Neutral 70 - 9,389 9,518 10,468 2.0 2.0 15.5 22.1 4.6 3.2 0.5 0.4 10.2 13.3 - -
Indian Bank Accumulate 100 113 4,278 6,077 6,845 2.9 3.0 35.2 41.0 2.8 2.4 0.4 0.4 14.1 14.8 - -
IOB Neutral 46 - 4,214 8,028 9,204 2.4 2.6 12.5 19.7 3.6 2.3 0.3 0.3 9.1 13.1 - -
J & K Bank Neutral 1,179 - 5,716 3,101 3,427 3.6 3.6 215.5 210.3 5.5 5.6 1.0 0.9 19.9 16.9 - -LIC Housing Finance Accumulate 195 211 9,826 2,180 2,732 2.4 2.5 26.3 32.1 7.4 6.1 1.3 1.2 19.0 19.9 - -
Oriental Bank Buy 165 203 4,821 6,790 7,676 2.6 2.7 55.7 62.3 3.0 2.7 0.4 0.4 12.8 12.9 - -
Punjab Natl.Bank Accumulate 628 718 22,209 20,914 23,879 3.3 3.4 152.4 176.2 4.1 3.6 0.7 0.6 16.2 16.5 - -
South Ind.Bank Neutral 22 - 2,969 1,800 2,023 2.7 2.7 3.7 4.2 6.0 5.3 0.9 0.8 16.2 16.2 - -
St Bk of India Buy 1,799 2,077 123,089 66,417 76,734 3.0 3.0 227.4 284.8 7.9 6.3 1.2 1.0 15.4 17.1 - -
Syndicate Bank Buy 103 121 6,176 7,125 8,188 2.6 2.6 27.4 27.9 3.8 3.7 0.6 0.5 16.2 14.6 - -
UCO Bank Neutral 64 - 4,824 6,545 6,859 2.7 2.6 14.8 15.7 4.3 4.1 0.8 0.7 14.4 13.6 - -
Union Bank Buy 146 178 8,695 11,101 12,543 2.6 2.6 39.3 47.4 3.7 3.1 0.5 0.5 14.1 15.2 - -
United Bank Neutral 44 - 1,630 3,386 3,884 2.3 2.5 12.4 20.0 3.5 2.2 0.4 0.3 10.0 14.7 - -
Vijaya Bank Accumulate 43 47 2,111 2,714 3,046 1.9 2.0 9.2 10.8 4.6 3.9 0.5 0.5 10.7 11.5 - -
Yes Bank Neutral 374 - 13,441 4,451 5,526 2.8 2.8 43.0 49.7 8.7 7.5 1.9 1.6 23.9 22.8 - -
FMCG
Asian Paints Neutral 5,079 - 48,721 12,332 14,524 16.3 16.1 138.9 160.4 36.6 31.7 11.6 9.2 35.2 32.5 3.9 3.2
Britannia Neutral 722 - 8,642 6,417 7,502 6.1 6.3 21.3 25.5 34.0 28.4 11.0 8.8 35.7 34.6 1.3 1.1
Colgate Neutral 1,451 - 19,737 3,588 4,130 20.5 20.9 44.2 51.8 32.8 28.1 32.0 23.3 108.6 96.2 5.3 4.6
Dabur India Neutral 171 - 29,799 7,183 8,340 16.8 16.8 5.4 6.3 31.8 27.2 12.4 9.6 41.5 40.1 4.1 3.5
GlaxoSmith Con* Neutral 5,016 - 21,096 3,617 4,259 16.1 16.4 122.2 148.7 41.1 33.7 12.8 10.3 34.1 33.7 5.4 4.5
Godrej Consumer Neutral 888 - 30,204 7,801 9,017 16.2 15.9 25.1 29.7 35.3 29.9 7.6 6.3 24.9 24.2 4.0 3.4
HUL Neutral 687 - 148,454 29,167 33,164 13.6 13.7 17.1 18.4 40.2 37.3 38.6 28.0 113.4 87.0 5.0 4.3
ITC Neutral 359 - 283,737 34,294 39,991 36.8 37.0 11.3 13.3 31.8 26.9 10.5 8.5 36.1 34.9 8.0 6.8
Marico Neutral 218 - 14,057 5,273 6,044 14.8 14.9 7.3 8.7 30.0 25.2 5.9 4.8 21.4 21.0 2.7 2.3
Nestle* Neutral 5,561 - 53,619 9,447 10,968 22.1 22.3 127.5 154.1 43.6 36.1 21.8 15.8 57.7 50.7 5.7 4.8
Tata Global Neutral 152 - 9,384 8,069 8,957 9.8 9.7 7.8 8.6 19.4 17.7 2.3 2.2 9.5 9.7 1.1 1.0
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Market Outlook
Stock Watch
July 26, 2013
-
7/27/2019 Market Outlook, 26-07-2013
16/20
Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E
IT
HCL Tech^ Neutral 902 - 62,875 29,424 32,837 22.6 22.0 59.5 63.3 15.2 14.2 3.7 3.0 24.6 21.7 2.0 1.7
Hexaware* Accumulate 113 123 3,376 2,213 2,479 21.5 20.5 12.1 12.9 9.3 8.8 2.3 2.0 25.4 23.5 1.4 1.2
Infosys Neutral 2,916 - 167,442 47,001 51,196 26.2 26.4 171.3 189.4 17.0 15.4 3.5 3.0 20.4 19.3 2.9 2.5
Infotech Enterprises Accumulate 180 190 2,010 2,052 2,263 17.2 17.6 20.7 22.5 8.7 8.0 1.3 1.1 14.9 14.0 0.6 0.5
KPIT Cummins Accumulate 132 144 2,556 2,614 2,923 17.2 16.8 13.2 14.4 10.1 9.2 1.8 1.5 18.5 16.7 0.9 0.8
Mindtree Accumulate 956 1,050 3,973 2,768 3,006 19.7 19.9 103.1 105.3 9.3 9.1 2.2 1.8 24.8 20.3 1.1 0.9
Mphasis& Neutral 391 - 8,212 6,372 6,852 18.0 18.2 38.0 43.5 10.3 9.0 1.5 1.3 14.3 14.2 0.8 0.6NIIT Buy 17 30 278 1,144 1,267 9.0 9.1 4.3 5.4 3.9 3.1 0.4 0.4 10.3 12.0 - -
Persistent Accumulate 537 595 2,150 1,505 1,677 25.9 26.2 53.6 59.7 10.0 9.0 1.8 1.5 17.7 16.7 1.0 0.8
TCS Accumulate 1,793 2,060 350,998 79,005 91,576 29.7 30.0 88.6 103.1 20.2 17.4 6.4 5.1 31.5 29.2 4.2 3.6
Tech Mahindra Accumulate 1,178 1,250 27,367 8,102 8,709 19.7 19.2 107.5 117.0 11.0 10.1 2.3 1.9 21.2 18.9 3.4 3.1
Wipro Neutral 376 - 92,725 41,659 45,137 21.2 21.4 27.7 29.9 13.6 12.6 2.8 2.4 20.5 19.0 1.7 1.5
Media
D B Corp Accumulate 270 302 4,959 1,783 1,968 25.2 26.8 14.6 17.2 18.6 15.7 4.8 4.1 23.9 24.2 2.7 2.4
HT Media Buy 98 117 2,297 2,205 2,380 15.1 15.6 8.3 9.3 11.8 10.6 1.4 1.3 11.6 11.6 0.7 0.5
Jagran Prakashan Buy 90 107 2,976 1,664 1,825 20.9 23.0 6.4 7.8 14.0 11.6 2.8 2.5 21.0 23.1 1.9 1.7
PVR Neutral 343 - 1,362 1,359 1,540 17.3 17.4 17.2 21.6 19.9 15.9 2.0 1.8 10.3 12.0 1.4 1.3
Sun TV Network Neutral 386 - 15,229 2,287 2,551 69.7 70.5 20.0 23.3 19.3 16.6 4.8 4.2 26.4 27.3 6.3 5.5
Metals & Mining
Bhushan Steel Neutral 460 - 10,425 13,794 17,088 30.9 33.5 49.3 66.6 9.3 6.9 1.0 0.9 11.3 13.5 2.4 1.9
Coal India Buy 294 345 185,954 72,174 76,311 33.3 28.4 28.4 30.9 10.4 9.5 2.9 2.4 37.6 36.2 1.7 1.6
Electrosteel Castings Buy 12 18 395 1,976 2,017 11.8 12.7 1.3 2.6 9.6 4.7 0.1 0.1 2.6 5.2 0.5 0.1
GMDC Buy 99 155 3,145 1,920 2,239 53.2 52.9 21.6 25.0 4.6 4.0 1.0 0.9 25.1 23.8 1.2 0.8Hind. Zinc Buy 102 145 43,119 12,358 13,659 51.4 51.6 16.0 17.6 6.4 5.8 1.2 1.0 19.4 18.4 1.2 0.7
Hindalco Neutral 102 - 19,557 89,352 93,672 8.8 9.2 13.4 15.0 7.6 6.8 0.5 0.5 7.3 7.6 0.6 0.5
JSW Steel Neutral 567 - 13,695 47,613 48,385 17.4 18.8 81.8 109.6 6.9 5.2 0.7 0.7 11.1 13.4 0.6 0.5
MOIL Buy 195 248 3,279 1,010 1,046 46.5 47.6 26.8 28.8 7.3 6.8 1.1 0.9 15.4 14.7 0.9 0.6
Monnet Ispat Buy 114 193 724 2,326 2,709 21.4 23.1 33.3 43.1 3.4 2.6 0.3 0.2 8.3 9.9 1.3 1.0
Nalco Neutral 29 - 7,564 7,656 7,988 13.1 13.5 2.6 2.6 11.5 11.2 0.6 0.6 5.5 5.5 0.4 0.4
NMDC Buy 104 140 41,253 10,610 11,400 66.3 64.2 15.6 16.1 6.7 6.5 1.4 1.2 21.3 19.9 1.8 1.6
SAIL Neutral 43 - 17,904 44,060 54,786 9.4 11.5 5.2 7.2 8.3 6.1 0.4 0.4 5.2 6.8 0.7 0.6
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Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E
Metals & Mining
Sesa Goa Buy 140 166 12,163 3,742 4,426 32.9 32.8 30.0 29.8 4.7 4.7 0.6 0.6 14.3 12.5 4.0 3.3
Sterlite Inds Buy 80 100 26,986 44,462 45,568 23.2 24.7 18.1 20.2 4.4 4.0 0.5 0.4 11.3 11.4 0.5 0.5
Tata Steel Buy 223 378 21,663 140,917 151,537 9.7 10.8 30.9 47.6 7.2 4.7 0.7 0.6 9.6 13.4 0.5 0.5
Sarda Buy 94 153 337 1,494 1,568 19.1 20.3 31.3 36.5 3.0 2.6 0.3 0.3 11.8 12.4 0.6 0.5
Prakash Industries Buy 31 40 418 2,615 2,776 12.1 12.0 9.8 10.4 3.2 3.0 0.2 0.2 6.5 6.5 0.4 0.4
Godawari Power andIspat
Buy 72 102 236 2,344 2,509 14.9 15.4 38.7 47.0 1.9 1.5 0.2 0.2 12.3 12.9 0.5 0.4
Oil & Gas
Cairn India Accumulate 305 345 58,208 16,482 16,228 69.4 53.3 53.3 49.6 5.7 6.2 0.9 0.8 16.5 13.6 2.2 1.8
GAIL Neutral 329 - 41,682 52,102 52,876 15.7 16.1 34.1 35.7 9.6 9.2 1.5 1.3 16.4 15.3 0.3 0.2
ONGC Buy 305 387 261,071 170,063 198,461 36.3 38.3 34.7 41.9 8.8 7.3 1.5 1.3 18.3 19.5 1.3 0.9
Reliance Industries Neutral 891 - 287,705 397,546 421,695 9.4 8.6 75.0 76.4 11.9 11.7 1.3 1.2 12.4 11.4 0.7 0.6
Gujarat Gas* Neutral 201 - 2,572 3,707 3,850 11.7 12.4 23.7 25.7 8.5 7.8 2.4 2.1 29.6 28.2 0.6 0.5
Indraprastha Gas Neutral 286 - 3,998 3,700 4,218 23.4 22.8 26.7 30.4 10.7 9.4 2.2 1.9 22.7 21.8 1.2 0.9
Petronet LNG Buy 124 167 9,266 40,356 40,872 5.8 6.4 15.0 16.7 8.2 7.4 1.7 1.5 23.0 21.5 0.3 0.3
Gujarat State PetronetLtd.
Neutral 54 - 3,011 1,171 1,287 91.9 91.9 10.1 11.3 5.3 4.7 0.9 0.7 17.3 16.8 - -
Pharmaceuticals
Alembic Pharma Neutral 153 - 2,893 1,736 2,008 17.1 18.9 10.7 13.9 14.3 11.0 4.5 3.4 35.0 34.7 1.7 1.5
Aurobindo Pharma Buy 179 271 5,208 6,641 7,637 15.9 15.9 17.3 20.6 10.3 8.7 1.7 1.4 19.5 18.9 1.2 1.0
Aventis* Neutral 2,369 - 5,456 1,682 1,917 16.6 16.6 92.4 99.1 25.6 23.9 3.6 3.6 15.7 14.8 2.9 2.3
Cadila Healthcare Buy 738 929 15,115 7,280 8,640 15.5 15.7 38.3 46.5 19.3 15.9 4.1 3.4 23.5 23.5 2.4 2.0
Cipla Buy 410 477 32,900 9,274 10,796 23.1 23.1 21.0 23.8 19.5 17.2 3.1 2.7 17.2 16.8 3.3 2.7
Dr Reddy's Accumulate 2,320 2,535 39,446 13,377 15,350 20.4 20.1 112.3 126.8 20.7 18.3 4.4 3.7 23.5 21.8 3.0 2.6Dishman Pharma Buy 54 168 432 1,394 1,534 22.5 22.4 15.0 16.8 3.6 3.2 0.4 0.3 11.0 11.2 0.9 0.8
GSK Pharma* Neutral 2,425 - 20,538 2,854 3,145 28.6 28.6 76.6 83.3 31.7 29.1 9.5 8.6 31.1 31.0 6.3 5.7
Indoco Remedies Buy 64 78 593 760 922 15.3 15.3 6.1 7.8 10.6 8.3 1.3 1.1 12.9 14.7 1.0 0.8
Ipca labs Neutral 658 - 8,301 3,243 3,826 20.5 21.5 36.0 44.4 18.3 14.8 4.3 3.4 26.0 25.4 2.7 2.3
Lupin Neutral 864 - 38,706 11,641 13,933 21.3 21.3 34.8 41.8 24.8 20.7 5.8 4.6 26.2 24.8 3.4 2.7
Ranbaxy* Buy 311 384 13,140 11,400 12,060 10.5 12.5 17.5 22.5 17.8 13.8 2.9 2.5 17.0 19.1 1.1 1.0
Sun Pharma Neutral 1,094 - 113,102 13,509 15,846 41.0 41.0 33.0 39.8 33.2 27.5 6.7 5.5 22.0 22.0 7.8 6.5
Power
GIPCL Buy 63 78 952 1,444 1,482 33.4 33.0 13.7 14.8 4.6 4.3 0.5 0.5 12.3 12.0 0.7 0.5
NTPC Buy 140 163 115,478 76,734 86,680 24.5 24.3 13.4 14.5 10.5 9.7 1.3 1.2 12.8 12.7 2.2 2.1
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Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E
Real Estate
DLF Buy 175 236 31,164 8,293 9,622 36.5 36.1 5.7 6.7 30.7 26.0 1.1 1.1 3.7 4.1 5.9 4.9
MLIFE Accumulate 450 476 1,836 888 1,002 30.6 30.6 38.8 43.4 11.6 10.4 1.3 1.2 11.2 11.4 2.6 2.3
Telecom
Bharti Airtel Neutral 337 - 134,592 85,489 94,229 31.9 31.9 10.2 14.6 32.9 23.0 2.4 2.2 7.2 9.4 2.3 2.0
Idea Cellular Neutral 160 - 52,917 25,640 28,459 26.9 27.2 4.0 4.9 39.9 32.3 3.4 3.0 8.4 9.4 2.5 2.2
Rcom Neutral 137 - 28,329 22,751 24,628 30.9 31.3 3.4 5.3 40.0 26.1 0.8 0.8 2.1 3.1 2.8 2.5
OthersAbbott India* Buy 1,416 1,659 3,009 1,863 2,081 11.8 12.4 71.2 83.0 19.9 17.1 4.0 3.4 21.6 21.5 1.4 1.1
Bajaj Electricals Buy 180 237 1,798 3,885 4,472 5.4 7.2 11.0 19.7 16.5 9.1 2.2 1.9 13.5 20.3 0.5 0.4
Cera Sanitaryware Buy 519 613 656 631 797 14.5 13.7 42.6 51.1 12.2 10.2 2.9 2.3 26.5 25.3 1.0 0.8
Cravatex Buy 260 459 67 248 284 6.5 7.3 27.2 38.2 9.6 6.8 1.5 1.3 15.7 18.5 0.4 0.4
Finolex Cables Buy 58 68 886 2,563 2,899 9.8 9.8 10.1 11.3 5.8 5.1 0.8 0.7 14.3 13.8 0.3 0.2
Force Motors Buy 238 437 310 2,304 2,649 3.1 3.6 28.0 43.7 8.5 5.4 0.3 0.3 3.1 4.7 0.1 0.1
Goodyear India* Accumulate 326 345 751 1,458 1,542 8.3 9.0 32.3 37.0 10.1 8.8 1.8 1.6 19.5 19.3 0.3 0.3
Hitachi Buy 117 177 318 1,053 1,169 6.3 7.1 13.8 17.7 8.5 6.6 1.2 1.0 15.0 16.7 0.3 0.3
Honeywell Automation* Neutral 2,424 - 2,143 1,842 2,131 7.7 7.8 112.4 132.4 21.6 18.3 2.7 2.4 13.3 13.8 1.1 0.9
IFB Agro Buy 135 198 122 495 651 12.7 12.9 29.3 39.5 4.6 3.4 0.7 0.6 15.4 17.6 0.4 0.3
ITD Cementation Buy 164 234 189 1,430 1,573 11.1 11.0 19.1 26.9 8.6 6.1 0.5 0.4 5.4 7.1 0.5 0.5
Jyothy Laboratories Accumulate 177 199 2,932 1,220 1,476 13.3 13.6 5.5 9.0 32.0 19.5 3.7 3.3 12.1 17.7 2.7 2.2
MRF Neutral 13,877 - 5,885 11,799 12,587 14.1 13.5 1,792.4 1,802.0 7.7 7.7 1.6 1.4 23.5 19.2 0.6 0.5
Page Industries Neutral 4,479 - 4,996 1,057 1,282 19.4 19.6 124.8 153.7 35.9 29.1 17.8 13.1 56.3 51.8 4.8 4.0
Relaxo Footwears Buy 687 791 824 1,146 1,333 10.9 11.4 45.9 60.9 15.0 11.3 3.1 2.5 23.0 24.6 0.9 0.7
Siyaram Silk Mills Buy 235 311 220 1,158 1,322 10.8 11.2 62.1 77.8 3.8 3.0 0.6 0.5 17.2 18.4 0.4 0.4Styrolution ABS India* Buy 408 617 717 1,068 1,223 9.6 9.6 38.1 44.1 10.7 9.3 1.5 1.3 14.5 14.7 0.7 0.6
TAJ GVK Buy 58 108 366 300 319 35.8 36.2 7.9 9.1 7.4 6.4 1.0 0.9 13.9 14.4 1.5 1.3
Tata Sponge Iron Buy 259 371 398 814 849 17.0 17.6 64.6 69.2 4.0 3.7 0.6 0.5 14.5 13.8 0.1 (0.1)
TTK Healthcare Buy 573 686 445 435 516 6.2 7.1 24.3 33.3 23.6 17.2 3.9 3.3 17.6 20.8 0.9 0.7
Tree House Neutral 290 - 1,042 153 194 53.0 52.8 12.4 15.6 23.4 18.5 2.8 2.4 11.8 13.1 7.0 5.4
TVS Srichakra Buy 174 230 134 1,591 1,720 6.1 6.4 24.5 38.3 7.1 4.6 0.8 0.7 10.9 15.9 0.3 0.3
United Spirits Neutral 2,707 - 39,339 12,294 14,162 12.0 12.0 42.1 67.7 64.3 40.0 4.5 4.1 9.1 10.7 3.5 3.0
Vesuvius India* Accumulate 382 439 775 600 638 20.1 19.4 35.7 36.6 10.7 10.5 1.9 1.7 19.4 17.1 1.1 1.0
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Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E
Others
HSIL Buy 87 117 575 2,042 2,363 14.6 14.8 12.3 16.5 7.1 5.3 0.5 0.5 7.6 9.4 0.7 0.7
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on July 25, 2013
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Research Team Tel: 022 - 39357800 E-mail: research@angelbroking.com Website: www.angelbroking.com
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