market outlook 14th may 2012

7/31/2019 Market Outlook 14th May 2012

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Market OutlookMay 14, 2012

www.angelbroking.com

Dealers Diary

The domestic markets are expected to open flat to positive tracking mixed opening

in Asian markets. Most of the Asian markets fell for third consecutive session on

Friday as Chinese industrial production, retail sales and fixed asset investment

confirmed bearing expectations about demand outlook. Also, JPMorgans warningof US$2bn trading loss fueled risk aversion.

U.S markets mostly fell on Friday to a second weekly decline as a rise in consumer

sentiment failed to outweigh JPMorgan Chase & Co.s US$2 billion trading loss.

Also, in Greece lawmakers struggled to form a coalition government and appear

poised for a new round of elections. The negative sentiment was partly offset by a

report from Reuters and University of Michigan showing that their consumer

sentiment index for May rose to 77.8 from the final April reading of 76.4.

Meanwhile, Indian markets extended losses for a fourth consecutive session on

Friday after government data showed the nation's IIP unexpectedly contracted in

March, with production shrinking 3.5%. Markets would now watch out for domestic

inflation data for March 2012 (Bloomberg estimate 6.7%) to be released today.

Markets TodayThe trend deciding level for the day is 16,325 / 4,937 levels. If NIFTY trades above

this level during the first half-an-hour of trade then we may witness a further rally

up to 16,416 16,538 / 4,968 5,007 levels. However, if NIFTY trades below

16,325 / 4,937 levels for the first half-an-hour of trade then it may correct up to

16,202 16,111 / 4,898 4,867 levels.

Indices S2 S1 PIVOT R1 R2SENSEX 16,111 16,202 16,325 16,416 16,538

NIFTY 4,867 4,898 4,937 4,968 5,007

News Analysis IIP shrinks in March by 3.5% 4QFY2012 Result Reviews Dr. Reddys Lab, Bhushan Steel, Indian Bank,

Federal Bank, Thermax, JSW Ispat, Graphite India, Goodyear India, CCCL 4QFY2012 Result Previews L&T, JSW Steel, Ashok Leyland, IVRCL, Orchid

ChemicalsRefer detailed news analysis on the following page

Net Inflows (May 10, 2012)

` cr Purch Sales Net MTD YTDFII 1,933 1,591 342 (129) 43,332

MFs - - - (474) (6,575)

FII Derivatives (May 11, 2012)

` cr Purch Sales Net Open InterestIndex Futures 1,452 1,831 (379) 10,951

Stock Futures 1,269 1,318 (49) 20,767

Gainers / Losers

Gainers LosersCompany Price (`) chg (%) Company Price (`) chg (%)Manappuram Finance 23 14.4 IRB Infra 105 (13.4)

Jubliant Foodworks 1,131 7.7 Indian Bank 180 (8.5)

Jaiprakash Asso 63 4.1 India Cements 79 (6.0)

Bajaj Auto 1,555 3.5 JSW Ispat 10 (5.7)

Bata India 853 3.0 JSW Steel 627 (5.2)

Domestic Indices Chg (%) (Pts) (Close)BSE Sensex (0.8) (127.1) 16,293

Nifty (0.7) (36.8) 4,929

MID CAP (0.8) (49.6) 5,949

SMALL CAP (0.9) (58.8) 6,395

BSE HC (2.0) (132.4) 6,574

BSE PSU (1.0) (68.5) 6,711

BANKEX 0.0 1.9 10,836

AUTO 0.6 56.8 9,779

METAL (1.2) (120.1) 10,107

OIL & GAS (0.5) (37.2) 7,548

BSE IT (1.1) (58.3) 5,482

Global Indices Chg (%) (Pts) (Close)Dow Jones (0.3) (34.4) 12,821NASDAQ 0.0 0.2 2,934

FTSE 0.6 31.6 5,576

Nikkei (0.6) (56.3) 8,953

Hang Seng (1.3) (262.7) 19,965

Straits Times (0.6) (16.6) 2,886

Shanghai Com (0.6) (15.3) 2,395

Indian ADRs Chg (%) (Pts) (Close)INFY (1.6) (0.7) $43.7

WIT (1.1) (0.1) $9.1IBN (0.2) (0.1) $30.7

HDB (1.2) (0.4) $31.2

Advances / Declines BSE NSEAdvances 919 427

Declines 1,850 1,010

Unchanged 110 70

Volumes (` cr)BSE 1,924

NSE 9,264


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IIP shrinks in March by 3.5%

Industrial production (IIP) growth contracted in March, declining by 3.5% yoy, well

below Bloomberg consensus estimates of 1.7% yoy growth. The 12-month rolling

industrial production growth, which has been on a declining trend since November

2010 (9.9%), slipped further to 2.8% yoy.

Manufacturing index, which has witnessed continued sluggish growth over the last

year, contracted by 4.4% in March. Only 10 out of 22 industry groups in the

manufacturing sector registered above zero growth during March 2012. Mining

activity index, which had recorded expansion for the first time in the last eight

months in February, contracted again by 1.3% in March. Growth in electricity

production, after reviving in February, again moderated down to 2.7% in March

2012

As per use-based data, capital goods index disappointed the most (contraction of

21.3%), followed by intermediate goods (contraction of 2.1%). Rest of the indices

could only achieve marginal growth, with basic goods witnessing the highest

growth at 1.1%.

Result Reviews

Dr. Reddys Lab (CMP:`1,662 / TP: - /Upside: -)

Dr. Reddys Lab (DRL) Lupin reported better than expected sales, while the net profit

came in below expectations. For the quarter, the company posted sales of

`2,658cr, a rise of 31.8% yoy. The growth on the sales front was lead by the US

and the Russian markets. The US markets grew by 36% yoy (in US$ terms), while

Russia, grew by 23% yoy in local currency. Indian markets also grew at an 11%yoy. On the operating front, the Gross and Operating margins came in at 52.6%

and 22.7% respectively. On yoy the gross margins declined by 172bps, while the

OPMs expanded by 229bps, mainly on back of reduction in SG&A expenses.

However, a higher tax burden during the quarter lead the adj. net profit come in

`431cr, a yoy growth of 28.9%.We remain neutral on the stock.Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 9,183 25.7 1,550 92.1 22.8 18.0 3.9 12.2 3.2

FY2014E 10,063 25.1 1,513 89.9 18.8 18.5 3.5 11.5 2.9

Bhushan Steel(CMP:`438 / TP: - / Upside: -)Bhushan Steel reported its 4QFY2012 results. Net sales grew by 44.3% yoy to

`2,837cr which would be mainly on account of higher sales volumes in our view.

EBITDA increased 49.0% yoy to `898cr, representing EBITDA margin of 31.6%.

Depreciation expense increased 140.5% yoy to `166cr on account of increased

capacity, while interest expense increased 125.6% yoy to `299cr as it had

capitalized phase II. Consequently, net profit increased by 14.9% yoy to `331cr.

We recommend Neutral on the stock.Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 9,182 30.8 850 40.0 11.6 10.9 1.2 10.4 3.8

FY2014E 13,487 31.1 1,244 58.6 14.9 7.5 1.0 7.1 3.0


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Indian Bank (CMP:`180/ TP:`218/ Upside: 21.6% )Indian Bank reported a dismal performance for 4QFY2012, both on the

operational and asset-quality front. The bank reported a decline in its NII by 2.6%

yoy to `1,083cr. Non-interest income increased by 13.0% on a yoy basis to

`307cr. Operating expenses increased at a much higher pace of 23.5% yoy to`592cr, which resulted in an 11.7% yoy decline in pre-provisioning profit to

`797cr. Net profit declined by 21.3% yoy to `345cr (despite being aided by

`110cr of negative tax expense for the quarter as against tax expense of`337cr in

4QFY2011), on the back of a substantial increase in provisioning expenses by

343.1% on a yoy basis to `562cr. The banks asset quality deteriorated

considerably during the quarter, with both gross and net NPA ratio increasing on a

sequential basis by 68bp and 53bp, respectively, and PCR declining by 637bp qoq

to 70.1%.At the CMP, the stock is trading at attractive valuation of 0.6x FY2014ABV. We maintain our Buy recommendation on the stock with a target priceof `218.Y/E Op. Inc NIM PAT EPS ABV RoA RoE P/E P/ABVMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 6,469 3.5 1,954 45.5 253.5 1.3 19.6 4.0 0.7

FY2014E 7,244 3.3 2,099 48.8 291.3 1.2 18.2 3.7 0.6

Federal Bank (CMP:`414/ TP - / Upside: -)

For 4QFY2012, Federal Bank reported 38.4% yoy (17.7% qoq) growth in its net

profit to `238cr, in-line with our estimates. While the bank witnessed sequential

moderate growth in its operating income (10.7% qoq), lower provisioningexpenses (down by 80.5% qoq) propped up profitability growth to 38.4% qoq.

The banks asset quality improved during 4QFY2012 as well with absolute gross

and net NPAs decreasing by 4.6% and 18.3% sequentially, respectively. Gross

NPA ratio improved by 62bp qoq to 3.4%, while net NPA ratio improved by 21bp

to 0.5%.

At the CMP, the stock is trading at valuations of 1.0x FY2014E ABV. Considering

the deregulation of NRE FD rates (NRE deposits comprise ~12% of its total

deposits) and that mid-size PSU banks with similar earnings outlook are trading at

valuation of 0.5-0.7x, we remain Neutral on the stock.Y/E Op. Inc NIM PAT EPS ABV RoA RoE P/E P/ABVMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 2,766 3.4 846 49.5 372.9 1.3 14.0 8.2 1.1

FY2014E 3,163 3.3 979 57.2 417.9 1.3 14.5 7.1 1.0

Thermax (CMP:`418/ TP: - / Upside: -)

Thermax announced a muted set of numbers for 4QFY2012, which were more or

less in-line with our estimates. The companys top line declined by 4.5% yoy to

`1,687cr (`1,767cr), which was 5.7% lower than our estimates. The decline intotal revenue was mainly on account of a 7.6% yoy dip in the energy segments

revenue, with the environment segment growing by 10%. The companys EBITDA

margin expanded by 39bp yoy to 11.0% on account of falling raw-material cost


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(as a percentage of total income), which was partially able to offset the declining

revenue, with EBITDA coming at`185cr (`187cr). PAT for the quarter stood as at

`130cr, increasing by 2.6% yoy. Owing to the tough macro environment,

especially in the power sector, the companys order backlog declined by 25.1%

yoy to`4,828cr. We maintain our Neutral view on the stock.Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 5,473 8.6 536 30.4 20.5 13.8 2.6 8.1 0.7

FY2014E 5,497 8.2 506 28.7 16.9 14.7 2.3 7.8 0.6

JSW Ispat

JSW Ispat, an associate of JSW Steel, reported its 4QFY2012 results. JSW Ispats

net sales grew by 6.1% yoy to `2,783cr in 4QFY2012. However, the companys

EBITDA declined by 40.7% yoy to`195cr mainly due to higher costs and technicalproblems in its blast furnace operations. Further, it reported PAT loss of `141cr,

compared to a PAT of`70cr in 4QFY2011 due to higher interest. We maintain ourNeutral rating on JSW Steel.Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 39,161 17.8 1,736 72.1 10.1 9.9 0.9 4.0 0.7

FY2014E 43,958 17.9 2,162 89.5 11.4 8.0 0.8 3.6 0.6

Graphite India- 1QCY2012(CMP:`93/ TP:`124 / Upside: 34%)GIL reported strong sales growth in 4QFY2012. The companys revenue increased

by 48.6% yoy to`452cr. The graphite segment, which contributed around 85.3%

to the companys total revenue, registered strong growth of 52.9% yoy to`386cr,

while the steel segment managed a whopping 150% yoy increase to `24cr. The

companys OPM declined by 142bp yoy to 18.3% due to increased raw-material

cost, which grew to 51.2% as a percentage of sales in 4QFY2012 vs. 50.5% as a

percentage of sales in 4QFY2011. PAT increased by 131% yoy to `103cr, largely

due to forex gain of`30cr and other income of`22cr during the quarter. Adjusted

for other income and forex gain, PAT increased by 77.7% yoy. PAT margin also

expanded significantly by 813bp yoy to 22.8% due to the above reason and prior-period tax adjustments resulting in lower tax rate. Tax rate declined to 12.5% of

PBT in 4QFY2012 vs. 29.3% of PBT in 4QFY2011. We maintain our Buy view onthe stock with a target price of `124.Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 2,158 18.1 243 12.4 14.0 7.5 1.0 5.1 0.9

FY2014E 2,406 18.9 274 14.0 14.3 6.6 0.9 4.0 0.8

Goodyear India (CMP:`

332, TP:`

372, Upside: 12%)For 1QCY2012, Goodyear reported a disappointing set of numbers. The company

reported top line of`331cr, 13% below our estimates of`380cr and a decline of

1.6% yoy from `336cr in 1QCY2011 mainly due to suppressed demand for


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tractors and muted growth in the passenger vehicles industry. The companys

EBITDA margin contracted by 125bp yoy to 6% during the quarter and PAT

declined by 21% yoy to`11cr. We expect the companys revenue to post a 7.5%

CAGR over CY2011-13E; however, its EBITDA margin is expected to expand by

116bp due to stability in rubber prices, thus leading to a PAT CAGR of 23.1% over

CY2011-13E. We recommend Accumulate on the stock with a target priceof `372.Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)CY2012E 1,571 7.2 69 29.8 20.2 11.1 2.1 3.9 0.3

CY2013E 1,753 8.6 98 42.4 24.3 7.8 1.7 2.5 0.2

CCCL (CMP:`14 / TP: - / Upside: -)

CCCL posted a mixed set of numbers for the quarter. Revenue came in-line with

our expectations but the company gave a positive surprise at the EBITDA level,

which led to higher-than-expected profit for the quarter. The top line of the

company declined by 8.4% yoy to `589cr, against our estimate of `572cr.

However, the positive surprise came on the margin front, as the company posted

significantly higher-than-expected EBITDA margin of 9.5%, a jump of

600bp/490bp on a yoy/qoq basis, against our expectation of 4.4%. The main

reason for the improvement in margins was lower cost of material and

subcontracting charges as a percentage of sales. Interest cost came in at`29cr, a

jump of 142.8%/59.4% on a yoy/qoq basis. On the bottom-line front, the

company posted profit of`25cr in 4QFY2012 vs.`2cr in 4QFY2011 and against

our expectations of `1cr profit mainly on account of improvement in margin.CCCL had an order inflow of `3,114cr during the year, taking its outstanding

order book to `5,916cr. Although, CCCL has reported better-than-expected

performance in this quarter, the company has disappointed on the earnings front

and posted erratic margins since the last few quarters. Hence, we maintain ourNeutral view on the stock.Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 2,526 6 34 1.8 5.6 7.6 0.4 5.6 0.3

FY2014E 2,792 7 52 2.8 8.2 4.9 0.4 5.0 0.3

Result Previews

L&T

We expect L&T to record revenue of `18,944cr, registering 23.1% yoy growth, for

4QFY2012. This growth can be attributed to the companys large order book

(~`1.4trillion). On the EBITDA front, we expect the companys margin to witness a

decline of 150bp yoy to 13.7%. We project the companys net profit to come in at

`1,862cr, reporting yoy growth of 10.4%. We believe the company would end the

quarter with a total order inflow of ~`26,000cr.

At the CMP of`1,139, the stock is trading at 14.9x FY2014E earnings and 2.1x

FY2014E P/BV, on a standalone basis. We have used the SOTP methodology to

value the company to capture all its business initiatives and investments/stakes in


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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`1,641. We recommend Buy on the stock.

JSW SteelJSW Steel is slated to announce its standalone 4QFY2012 results. The companys

net revenue is expected to grow by 19.5% yoy to `8,406cr mainly on account of

increased sales volumes as well as realizations. However, operating margin is

expected to contract by 708bp yoy to 16.4% on account of higher costs of iron ore

and coking coal. Hence, net profit is expected to decrease by 48.1% yoy to

`432cr. We maintain our Neutral view on the stock.

Ashok Leyland

Ashok Leyland (AL) is slated to announce its 4QFY2012 results. The companys top

line is expected to grow by healthy 12.3% yoy to `4,298cr, led by ~19% growth in

volumes. We expect net average realization to decline on account of higher

contribution from lower priced vehicle, Dost. On the operating front, EBITDA

margin is expected to witness a ~250bp yoy contraction to 10.8%. As a result, the

companys bottom line is expected to decline by 15% yoy to `253cr. The stockrating is under review.

IVRCL

We expect IVRCL to post poor numbers for the quarter. On the revenue front,

IVRCL is expected to post a yoy decline of 18.0% to `1,682cr on the back ofslowdown in execution. On the EBITDA margin front, we expect a dip of 70bp yoy

to 8.0%. On the earnings front, we expect a decline of 56.6% yoy for the quarter

to `27.9cr, primarily on account of higher interest costs for the quarter. Wemaintain our Buy view on the stock with a target price of `79.

Orchid Chemicals

For the 4QFY2012, Orchid chemicals is expected to post a net sales and profits of

around`528cr and`36.3cr. While the net sales are expected to be flat, while the

net profit is expected to dip by 43.1%. On the operating front, the margins areexpected to dip by 160bps to end the period at 24.5%. We maintain our buy onthe stock with a target price of `207.

Quarterly Bloomberg Brokers Consensus Estimate

Adani Ports & SEZ Ltd - (14/05/2012)Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)Net sales 680 421 62 588 16

EBITDA 464 310 50 411 13

EBITDA margin (%) 68.2 73.6 69.9

Net profit 318 228 39 273 16


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Ashok Leyland Ltd - (14/05/2012)Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)Net sales 4,224 3,829 10 2,880 47

EBITDA 475 510 (7) 210 126

EBITDA margin (%) 11.2 13.3 7.3

Net profit 263 298 (12) 67 293

JSW Steel Ltd - Consolidated (14/05/2012)Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)Net sales 8,869 7,210 23 8,405 6

EBITDA 1,592 1,016 57 1,317 21

EBITDA margin (%) 18.0 14.1 15.7

Net profit 561 292 92 (48) (1269)

Larsen & Toubro Ltd - (14/05/2012)Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)Net sales 18,468 15,078 22 13,999 32

EBITDA 2,547 2,341 9 1,343 90

EBITDA margin (%) 13.8 15.5 9.6

Net profit 1,652 1,686 (2) 992 67

Cummins India Ltd - (15/05/2012)Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)Net sales 1,086 1,010 8 971 12

EBITDA 188 185 2 179 5

EBITDA margin (%) 17.3 18.3 18.4

Net profit 145 144 0 141 2

Unitech Ltd - Consolidated (15/05/2012)Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)Net sales 611 1,054 (42) 514 19

EBITDA 135 168 (20) 107 26

EBITDA margin (%) 22.1 16.0 20.9

Net profit 86 103 (17) 55 55

Economic and Political News Disappointing March IIP numbers, output falls by 3.5% Government disburses`4.76lakh cr farm credit in FY2012 RBI expects mild recovery in economic growth for 2012-13

Corporate News

Ashok Leyland cuts vehicle prices by 1% ONGC Videsh may buy 25% in South Atlantic sea block SAIL inks pact with Mongolia to explore steel, mines space TCS to manage Lakshmi Vilas Bank's back-office operationsSource: Economic Times, Business Standard, Business Line, Financial Express, Mint


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Date Company

May 14, 2012Larsen & Toubro, Mundra Port, JSW Steel , Ashok Leyland, Indraprasth Gas, Areva, Monnet Ispat, Orchid Chemicals,IVRCL Infra, Abbott India

May 15, 2012 Cummins India, Unitech, Patel Engg., Dishman Pharma, JK Tyre

May 16, 2012 Blue Star, J K Lakshmi Cements

May 17, 2012 Bajaj Auto, Mahindra Satyam

May 18, 2012 Coal India, St Bk of India, Tata Steel, HT Media

May 19, 2012 Force Motors

May 20, 2012 -

May 21, 2012 Adani Enterp., Adani Power, Nalco, Zee Entertainment, Tata Comm

May 22, 2012 Tata Power Co., Power Fin.Corpn.

May 23, 2012 Rural Elec.Corp., Tata Global, LMW, Jyothy Laboratories

May 24, 2012 GSPL, TVS Motor, Madras Cements, Hitachi

May 25, 2012 NHPC, BPCL

May 26, 2012 -

May 27, 2012 -

May 28, 2012 Motherson Sumi, Britannia, Amara Raja Batteries, Subros

May 29, 2012 Tata Motors, GMR Infra., Aurobindo Pharma

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

May 14, 2012 IndiaMonthly Wholesale PricesYoY%

% Change Mar-12 6.89 6.67

May 15, 2012 US Consumer price index (mom) % Change Mar-12 0.30 --

Euro Zone Euro-Zone GDP s.a. (QoQ) % Change Dec-11 (0.30) (0.20)

Germany GDP nsa (YoY) % Change Dec-11 1.50 0.90

May 16, 2012 Euro Zone Euro-Zone CPI (YoY) % Mar-12 2.70 2.60

US Industrial Production % Mar-12 -- 0.60

US Housing Starts Thousands Mar-12 654.00 685.00

US Building permits Thousands Mar-12 764.00 728.00

UK Jobless claims change % Change Mar-12 3.60 5.00

May 17, 2012 US Initial Jobless claims Thousands 05-May-12 367.00 365.00

May 22, 2012 Euro ZoneEuro-Zone Consumer

ConfidenceValue Apr-12 (19.90) --

UK CPI (YoY) % Change Mar-12 3.50 --

US Existing home sales Millions Mar-12 4.48 4.60

May 23, 2012 US New home sales Thousands Mar-12 328.00 335.00

May 24, 2012 Germany PMI Services Value Apr-12 52.20 --

Germany PMI Manufacturing Value Apr-12 46.20 --

UK GDP (YoY) % Change Mar-12 -- --

May 29, 2012 US Consumer ConfidenceS.A./

1985=100Apr-12 69.20 70.00

May 31, 2012 Germany Unemployment change (000's) Thousands Apr-12 19.00 --

US GDP Qoq (Annualised) % Change Mar-12 2.20 1.80

India Qtrly GDP YoY% % Change - 6.10 --



May 14, 2012

Market Outlook


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Market StrategyMay 14, 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

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

(%)

Source: CSO, Angel Research

Exhibit 2:IIP trends

5.36.2

9.5

3.7 3.42.5

(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-1

1

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

(%)

Source: MOSPI, Angel Research

Exhibit 3:Monthly WPI inflation trends

9.7 9.6 9.5 9.4 9.810.0 9.9 9.5

7.76.9 7.0 6.9

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Apr-

11

May-1

1

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

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-1

1

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

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-1

1

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

Exports yoy growth Imports yoy growth(%)


Exhibit 6:Key policy rates8.00

7.00

4.75

4.00

5.00

6.00

7.00

8.00

9.00

Apr-

11

May-1

1

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

Apr-

12

Repo rate Reverse Repo rate CRR(%)

Source: RBI, Angel Research


10/16

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 125 - 2,430 1,432 1,647 14.7 14.7 7.0 8.0 17.9 15.6 3.8 3.2 22.8 22.3 1.7 1.5

United Phosphorus Buy 119 183 5,497 8,191 8,764 16.5 16.5 17.1 18.3 7.0 6.5 1.1 1.0 17.5 16.2 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Buy 297 345 2,540 2,691 3,032 15.6 15.5 29.4 32.8 10.1 9.1 2.4 1.9 26.5 23.6 0.9 0.8

Apollo Tyres Buy 83 100 4,171 13,699 15,184 10.5 10.2 12.1 13.3 6.8 6.2 1.2 1.1 19.7 18.4 0.5 0.4

Ashok Leyland Buy 27 37 7,131 15,008 16,906 9.5 9.5 2.6 3.1 10.4 8.7 2.2 1.9 15.5 17.0 0.6 0.5

Automotive Axle Neutral 496 - 749 1,211 1,387 12.1 11.7 50.3 57.1 9.9 8.7 2.5 2.0 27.8 25.7 0.7 0.6Bajaj Auto Buy 1,555 1,811 45,002 21,966 24,774 19.8 19.0 111.7 120.7 13.9 12.9 5.4 4.3 43.1 37.1 1.6 1.4

Bharat Forge Accumulate 324 372 7,548 7,173 7,998 16.3 16.5 22.3 26.6 14.5 12.2 2.8 2.4 21.0 21.0 1.1 1.0

Bosch India Neutral 9,006 - 28,278 9,390 10,716 19.5 19.1 420.2 471.4 21.4 19.1 5.0 4.2 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 121 146 10,315 5,787 6,595 15.5 17.0 7.1 9.0 17.1 13.6 3.0 2.6 18.6 20.3 1.4 1.2

FAG Bearings Accumulate 1,501 1,594 2,495 1,531 1,748 18.8 18.5 118.0 132.8 12.7 11.3 2.8 2.3 24.0 21.9 1.4 1.1

Hero Motocorp Buy 1,843 2,280 36,808 26,106 29,296 15.0 15.2 140.3 148.1 13.1 12.5 6.2 4.8 54.8 43.3 1.1 0.9

JK Tyre Buy 77 113 318 8,058 9,025 5.4 5.5 24.8 32.2 3.1 2.4 0.3 0.3 11.4 13.2 0.3 0.3

Mahindra and Mahindra Buy 655 802 40,225 35,095 40,213 10.7 10.5 44.6 48.7 14.7 13.5 2.6 2.3 18.8 18.1 0.8 0.7

Maruti Buy 1,234 1,510 35,652 42,683 48,736 7.1 7.5 86.6 100.6 14.3 12.3 2.0 1.8 15.3 15.5 0.6 0.5

Motherson Sumi Buy 169 216 6,547 11,167 12,516 9.5 10.0 11.3 14.4 14.9 11.8 3.2 2.7 23.3 24.7 0.7 0.6

Subros Neutral 30 - 182 1,225 1,393 8.5 8.2 4.2 5.0 7.3 6.1 0.7 0.7 10.3 11.8 0.4 0.3

Tata Motors Accumulate 297 328 80,047 191,183 213,150 12.6 12.6 38.7 42.9 7.7 6.9 2.7 2.1 39.8 33.9 0.5 0.5

TVS Motor Buy 35 55 1,682 7,982 8,816 6.4 6.3 5.0 5.6 7.1 6.4 1.3 1.1 18.9 18.2 0.2 0.2

Capital Goods

ABB* Sell 721 503 15,276 8,926 10,220 7.7 7.5 18.6 20.9 38.7 34.4 5.3 4.7 14.5 14.5 1.7 1.5BGR Energy Reduce 295 274 2,128 4,170 5,396 11.5 10.4 27.2 30.4 10.9 9.7 1.8 1.6 17.3 17.4 1.1 1.0

BHEL Neutral 221 - 54,129 46,344 46,916 18.3 18.6 23.5 24.1 9.4 9.2 1.9 1.6 21.3 18.9 1.0 1.0

Blue Star Buy 184 221 1,654 3,250 3,551 5.9 5.9 12.4 15.8 14.8 11.7 3.0 2.6 21.2 23.8 0.6 0.5

Crompton Greaves Buy 117 164 7,515 12,936 14,101 9.6 10.0 10.9 11.7 10.8 10.0 1.9 1.6 18.4 17.3 0.6 0.5

Jyoti Structures Buy 39 67 320 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 52 73 1,333 6,686 7,200 7.7 7.9 10.6 12.2 4.9 4.3 0.9 0.8 25.9 24.0 0.3 0.3

LMW Buy 1,544 2,609 1,739 2,663 3,130 12.8 12.8 185.0 217.4 8.3 7.1 1.7 1.5 21.2 21.7 0.2 0.1

Thermax Neutral 420 - 5,007 5,473 5,497 10.1 9.8 30.4 28.7 13.8 14.7 2.6 2.3 20.5 16.9 0.8 0.7


May 14, 2012

Market Outlook

Stock Watch


11/16



Cement

ACC Neutral 1,168 - 21,922 11,018 12,663 19.9 21.2 70.7 81.2 16.5 14.4 2.9 2.6 18.0 19.0 1.7 1.4

Ambuja Cements Neutral 144 - 22,106 10,035 11,504 23.5 23.8 10.1 10.6 14.2 13.6 2.8 2.5 18.5 19.4 1.8 1.5

India Cements Neutral 79 - 2,434 4,423 4,906 18.2 18.8 9.9 12.7 8.0 6.3 0.7 0.6 8.6 10.5 0.8 0.7

J K Lakshmi Cements Buy 61 79 746 1,880 2,201 19.0 22.6 12.2 16.4 5.0 3.7 0.6 0.5 11.9 14.3 0.6 0.9

Madras Cements Neutral 145 - 3,440 3,434 3,777 25.5 26.1 14.1 18.1 10.2 8.0 1.5 1.3 15.2 16.9 1.6 1.4

Shree Cements Neutral 2,671 - 9,305 5,552 6,193 25.7 26.0 130.3 182.0 20.5 14.7 4.2 3.6 19.1 22.3 1.4 1.0

UltraTech Cement Neutral 1,363 - 37,365 20,116 22,655 21.3 22.5 82.1 97.5 16.6 14.0 2.6 2.3 16.8 17.4 1.8 1.7Construction

Ashoka Buildcon Buy 193 302 1,016 2,014 2,294 22.4 22.4 28.4 30.8 6.8 6.3 0.9 0.8 14.1 13.3 2.3 2.6

Consolidated Co Neutral 14 - 259 2,526 2,792 5.7 6.6 1.8 2.8 7.6 4.9 0.4 0.4 5.6 8.2 0.3 0.3

Hind. Const. Neutral 19 - 1,137 4,239 4,522 11.1 11.8 (1.8) (0.8) (10.5) (24.0) 1.1 1.2 (9.5) (4.7) 1.3 1.2

IRB Infra Buy 105 166 3,496 3,821 4,582 42.3 40.2 15.0 16.9 7.0 6.2 1.1 0.9 16.1 15.8 2.5 2.3

ITNL Buy 165 265 3,199 6,619 7,925 23.8 23.3 22.0 26.7 7.5 6.2 1.1 0.9 14.9 15.9 2.2 2.1

IVRCL Infra Buy 51 79 1,366 5,758 6,860 9.2 9.2 4.7 6.0 10.9 8.5 0.6 0.6 6.0 7.3 0.7 0.7

Jaiprakash Asso. Buy 63 104 13,365 16,017 18,359 24.4 23.5 4.2 5.0 15.0 12.5 1.3 1.2 8.8 9.7 2.1 1.9

Larsen & Toubro Buy 1,139 1,641 69,743 60,258 69,900 12.1 11.5 70.7 76.3 16.1 14.9 2.4 2.1 16.1 15.2 1.3 1.1

Madhucon Proj Buy 47 84 348 2,503 2,903 10.7 10.7 5.8 6.6 8.1 7.2 0.5 0.5 6.6 7.0 0.7 0.6

Nagarjuna Const. Buy 36 76 917 5,790 7,022 9.2 9.5 3.5 5.4 10.3 6.6 0.4 0.4 3.7 5.6 0.8 0.8

Patel Engg. Neutral 92 - 641 3,609 3,836 13.1 13.1 14.0 14.6 6.6 6.3 0.4 0.4 6.3 6.1 1.0 1.1

Punj Lloyd Neutral 45 - 1,494 10,592 12,193 8.4 8.4 2.9 4.6 15.5 9.9 0.5 0.5 3.9 3.1 0.6 0.6

Sadbhav Engg. Buy 132 199 1,991 2,989 3,315 10.6 10.6 10.2 11.3 13.0 11.7 2.1 1.8 17.6 16.3 0.9 0.8

Simplex Infra Buy 211 316 1,044 6,732 7,902 9.3 9.6 27.2 35.1 7.8 6.0 0.8 0.7 11.0 12.6 0.5 0.4

FinancialsAllahabad Bank Accumulate 148 166 7,400 7,392 8,542 3.1 3.1 38.3 42.1 3.9 3.5 0.7 0.6 18.4 17.6 - -

Andhra Bank Neutral 105 - 5,859 5,151 5,843 3.2 3.1 22.4 25.7 4.7 4.1 0.7 0.6 15.8 16.0 - -

Axis Bank Buy 1,001 1,587 41,437 16,157 19,557 3.2 3.2 116.4 139.1 8.6 7.2 1.6 1.4 20.0 20.3 - -

Bank of Baroda Buy 649 925 25,415 15,993 18,918 2.6 2.6 127.3 149.9 5.1 4.3 0.9 0.7 17.8 18.2 - -

Bank of India Buy 318 411 18,226 13,558 15,551 2.5 2.4 61.6 70.8 5.2 4.5 0.9 0.7 16.8 16.9 - -

Bank of Maharashtra Accumulate 48 55 2,854 3,580 4,050 3.2 3.2 11.5 13.1 4.2 3.7 0.7 0.6 17.4 17.2 - -

Canara Bank Buy 419 522 18,562 12,061 13,906 2.3 2.3 83.1 92.7 5.0 4.5 0.8 0.7 16.7 16.4 - -

Central Bank Neutral 78 - 5,723 6,838 7,912 2.3 2.4 13.8 20.3 5.6 3.8 0.8 0.7 10.9 14.4 - -


May 14, 2012

Market Outlook

Stock Watch


12/16



Financials

Corporation Bank Buy 405 504 6,001 5,203 5,880 2.2 2.1 107.5 112.7 3.8 3.6 0.7 0.6 17.9 16.5 - -

Dena Bank Buy 85 111 2,967 3,149 3,522 2.8 2.8 23.3 26.1 3.6 3.3 0.6 0.5 17.7 17.0 - -

Federal Bank Neutral 415 - 7,100 2,766 3,163 3.4 3.3 49.5 57.2 8.4 7.3 1.1 1.0 14.0 14.5 - -

HDFC Neutral 646 - 95,438 7,393 8,844 3.5 3.4 31.7 37.9 20.4 17.0 4.1 3.6 34.7 31.9 - -

HDFC Bank Accumulate 511 567 119,945 21,831 27,477 4.3 4.3 28.3 35.5 18.1 14.4 3.5 2.9 20.8 22.1 - -

ICICI Bank Buy 813 1,201 93,430 22,209 26,512 2.8 2.8 67.9 81.1 12.0 10.0 1.4 1.3 14.7 16.0 - -

IDBI Bank Buy 92 117 11,761 8,004 9,589 1.9 2.0 19.9 23.9 4.6 3.9 0.6 0.6 13.8 14.9 - -Indian Bank Buy 180 218 7,721 6,469 7,244 3.5 3.3 45.5 48.8 4.0 3.7 0.7 0.6 19.6 18.2 - -

IOB Buy 82 96 6,500 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 846 - 4,102 2,420 2,792 3.5 3.6 178.0 195.8 4.8 4.3 0.9 0.8 19.5 18.6 - -

LIC Housing Finance Buy 240 286 12,107 2,108 2,607 2.6 2.6 24.5 30.6 9.8 7.8 1.8 1.6 20.1 21.4 - -

Oriental Bank Buy 219 274 6,381 6,431 7,315 2.7 2.6 54.4 63.8 4.0 3.4 0.6 0.5 13.6 14.3 - -

Punjab Natl.Bank Buy 746 1,066 23,625 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 22 - 2,500 1,399 1,596 2.6 2.5 3.5 3.8 6.3 5.9 1.1 1.0 18.7 17.5 - -

St Bk of India Buy 1,852 2,511 124,291 69,568 81,445 3.7 3.7 220.9 269.8 8.4 6.9 1.4 1.2 18.9 19.1 - -

Syndicate Bank Buy 91 131 5,469 7,133 8,255 3.0 3.0 25.9 30.0 3.5 3.0 0.6 0.5 16.9 17.1 - -

UCO Bank Neutral 68 - 4,242 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 206 276 10,775 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 58 78 2,110 3,551 4,128 2.7 2.8 18.8 22.6 3.1 2.6 0.5 0.4 15.5 16.5 - -

Vijaya Bank Neutral 53 - 2,496 2,668 3,001 2.2 2.2 10.6 12.2 5.0 4.3 0.7 0.6 13.3 13.8 - -

Yes Bank Buy 329 470 11,650 3,209 4,144 2.7 2.8 33.9 41.5 9.7 7.9 2.0 1.7 23.1 23.3 - -

FMCG

Asian Paints Neutral 3,619 - 34,709 10,961 12,773 16.3 16.3 120.3 142.5 30.1 25.4 10.0 7.9 36.9 34.7 3.1 2.6Britannia Buy 540 650 6,444 5,906 6,856 6.9 7.0 22.3 28.3 24.2 19.1 9.9 7.3 45.2 44.1 1.1 0.9

Colgate Neutral 1,183 - 16,087 3,007 3,417 21.1 22.1 37.7 42.6 31.4 27.8 37.4 30.2 129.4 120.1 5.2 4.6

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 2,773 - 11,661 3,124 3,663 17.1 11.6 103.0 123.3 26.9 22.5 8.3 6.7 34.0 32.9 3.4 2.8

Godrej Consumer Neutral 519 - 17,646 5,973 7,000 18.4 18.6 22.8 27.2 22.7 19.1 6.2 5.0 31.3 38.4 3.1 2.6

HUL Neutral 431 - 93,150 25,350 29,309 14.3 14.4 14.1 16.4 30.5 26.3 22.8 17.8 82.7 76.2 3.5 3.0

ITC Accumulate 234 252 182,795 28,955 33,595 35.9 35.7 9.2 10.5 25.5 22.3 8.2 6.7 34.8 33.1 6.0 5.2


May 14, 2012

Market Outlook

Stock Watch


13/16



FMCG

Marico Neutral 178 - 10,967 4,667 5,427 12.8 12.9 6.6 8.1 26.8 21.9 7.2 5.6 30.0 28.8 2.4 2.0

Nestle* Neutral 4,545 - 43,816 8,731 10,539 21.0 21.4 119.3 147.9 38.1 30.7 23.3 15.9 73.0 61.6 5.1 4.1

Tata Global Buy 108 136 6,707 7,011 7,712 9.7 10.0 6.0 7.1 18.2 15.2 1.7 1.6 8.9 10.2 0.9 0.8

IT

HCL Tech Accumulate 488 560 33,776 22,792 25,743 17.4 17.4 37.8 43.0 12.9 11.3 2.9 2.4 22.3 21.3 1.5 1.2

Hexaware Neutral 119 - 3,529 1,821 2,105 19.0 18.6 9.8 10.7 12.1 11.1 2.8 2.4 23.7 22.5 1.7 1.4

Infosys Buy 2,312 2,792 132,753 37,615 42,491 31.1 30.6 158.5 174.5 14.6 13.3 3.3 2.8 22.5 20.8 2.9 2.4Infotech Enterprises Accumulate 160 177 1,782 1,758 1,972 17.0 16.6 16.8 18.6 9.5 8.6 1.3 1.1 13.6 13.2 0.6 0.5

KPIT Cummins Reduce 112 98 1,986 2,042 2,139 15.2 14.9 9.6 10.9 11.7 10.3 2.0 1.7 19.2 18.0 0.9 0.8

Mahindra Satyam Buy 69 89 8,155 7,142 8,042 15.4 15.0 7.7 8.3 9.1 8.4 1.3 1.1 13.8 13.0 0.8 0.6

Mindtree Neutral 581 - 2,356 2,172 2,450 16.1 15.5 53.9 58.5 10.8 9.9 2.0 1.7 18.9 17.0 0.9 0.7

Mphasis Accumulate 386 433 8,112 5,904 6,320 18.3 17.9 38.7 41.2 10.0 9.4 1.5 1.3 14.9 13.7 0.9 0.8

NIIT Buy 41 61 679 1,105 1,200 16.4 16.9 7.5 9.2 5.5 4.5 1.0 0.9 17.6 19.0 0.4 0.2

Persistent Neutral 362 - 1,446 1,109 1,224 23.3 22.4 37.2 40.1 9.7 9.0 1.5 1.3 15.4 14.5 1.0 0.8

TCS Neutral 1,232 - 241,032 57,189 66,329 29.3 28.7 63.2 70.9 19.5 17.4 6.0 4.8 30.5 27.7 4.0 3.3

Tech Mahindra Buy 639 750 8,142 6,030 6,511 16.3 15.7 81.1 87.0 7.9 7.3 1.6 1.3 20.1 18.0 1.3 1.1

Wipro Accumulate 401 430 98,547 41,918 46,879 19.4 19.9 25.1 28.7 16.0 14.0 3.0 2.6 18.6 18.3 2.0 1.7

Media

D B Corp Buy 195 274 3,575 1,656 1,869 26.0 26.8 14.0 16.1 14.0 12.1 3.2 2.7 24.8 24.1 2.1 1.8

HT Media Buy 119 170 2,785 2,255 2,555 17.8 18.3 10.0 12.0 11.9 9.8 1.6 1.4 14.7 15.4 1.0 0.8

Jagran Prakashan Buy 92 137 2,903 1,499 1,642 27.4 28.8 7.6 9.1 12.0 10.1 4.0 3.6 34.6 37.7 1.9 1.7

PVR Neutral 148 - 383 625 732 17.4 16.9 12.4 15.8 11.9 9.4 1.9 2.0 8.5 9.9 0.8 0.7

Sun TV Network Neutral 295 - 11,635 2,135 2,458 75.2 74.4 20.9 24.0 14.2 12.3 3.3 2.8 26.0 25.1 4.4 3.6Metals & Mining

Bhushan Steel Neutral 438 - 9,299 9,232 13,557 30.8 31.1 48.0 58.6 9.1 7.5 1.2 1.0 14.5 7.5 3.2 2.2

Coal India Accumulate 314 351 198,618 65,654 71,756 26.8 27.3 24.0 26.3 13.1 11.9 3.6 2.9 30.4 27.0 2.0 1.7

Electrosteel Castings Buy 20 27 678 1,984 2,074 10.6 12.0 2.7 3.3 7.3 6.0 0.4 0.1 5.2 6.2 0.5 0.4

Hind. Zinc Buy 119 139 50,260 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 114 - 21,730 84,652 88,766 9.6 10.5 17.0 18.9 6.7 6.0 0.6 0.6 9.7 9.8 0.5 0.5

JSW Steel Accumulate 627 693 13,991 39,161 43,958 17.8 17.9 72.2 89.5 8.7 7.0 0.8 0.7 10.1 11.4 0.6 0.5

MOIL Neutral 254 - 4,272 979 1,061 45.7 46.8 24.5 26.6 10.4 9.6 1.6 1.4 16.1 15.8 2.2 1.9

Monnet Ispat Buy 464 585 2,986 2,986 3,908 22.1 28.9 50.5 83.4 9.2 5.6 1.1 0.9 13.5 19.2 1.9 1.3


May 14, 2012

Market Outlook

Stock Watch


14/16



Metals & Mining

Nalco Reduce 58 51 14,871 8,276 8,578 12.7 16.4 2.5 3.5 22.8 16.5 1.3 1.2 5.6 7.5 1.4 1.3

NMDC Accumulate 169 185 66,825 11,726 12,890 77.8 78.4 18.6 20.6 9.1 8.2 2.2 1.8 26.1 23.8 3.5 3.0

SAIL Accumulate 89 102 36,824 52,461 62,935 18.0 18.8 13.2 14.5 6.8 6.2 0.8 0.7 12.4 12.3 1.1 0.9

Sesa Goa Buy 179 206 15,561 9,067 9,316 35.7 35.5 44.5 44.3 4.0 4.0 0.9 0.7 23.5 19.5 0.3 -

Sterlite Inds Buy 95 123 31,959 45,805 49,029 21.2 23.5 16.5 19.1 5.8 5.0 0.6 0.6 11.5 12.0 0.3 0.2

Tata Steel Buy 412 503 39,990 141,358 142,265 11.1 13.7 45.8 58.9 9.0 7.0 0.9 0.8 10.0 11.7 0.6 0.6

Oil & GasCairn India Buy 316 372 60,369 15,513 16,074 74.0 69.7 51.1 48.6 6.2 6.5 1.0 0.9 18.3 14.8 2.8 2.0

GAIL Buy 319 392 40,401 50,472 55,503 15.3 15.6 35.4 37.0 9.0 8.6 1.6 1.4 18.7 17.0 0.5 0.4

ONGC Buy 255 319 217,866 148,157 150,563 37.6 39.5 31.0 33.6 8.2 7.6 1.5 1.3 18.8 18.1 1.1 1.0

Reliance Industries Buy 697 872 228,334 325,734 328,669 10.9 11.7 65.8 70.1 10.6 10.0 1.1 1.0 11.9 11.5 0.7 0.7

Pharmaceuticals

Alembic Pharma Buy 52 91 975 1,624 1,855 14.2 15.6 6.6 9.1 7.8 5.7 1.9 1.5 27.5 29.2 0.8 0.7

Aurobindo Pharma Buy 109 175 3,179 5,243 5,767 14.6 14.6 13.8 14.7 7.9 7.4 0.9 0.4 11.4 10.9 0.9 0.8

Aventis* Neutral 2,083 - 4,796 1,482 1,682 15.5 15.5 95.0 104.0 21.9 20.0 3.9 3.0 18.6 17.0 3.0 2.6

Cadila Healthcare Buy 766 1,016 15,680 6,196 7,443 18.5 19.5 43.3 50.8 17.7 15.1 4.6 3.7 25.4 24.8 2.5 2.0

Cipla Buy 319 380 25,605 7,006 8,164 20.0 21.2 17.0 19.0 18.8 16.8 3.4 2.9 16.8 18.2 3.7 3.1

Dr Reddy's Neutral 1,662 - 28,163 9,183 10,063 25.7 25.1 92.1 89.9 18.0 18.5 3.9 3.4 22.8 18.8 3.2 2.9

Dishman Pharma Buy 42 91 339 1,282 1,538 17.9 17.9 10.1 13.0 4.2 3.2 0.3 0.3 8.5 10.1 1.0 0.9

GSK Pharma* Neutral 2,049 - 17,353 2,788 3,148 35.6 35.2 87.9 96.7 23.3 21.2 7.6 6.3 34.8 32.1 5.4 4.7

Indoco Remedies Buy 460 665 565 685 837 15.2 15.2 55.5 66.5 8.3 6.9 1.3 1.1 16.4 16.9 1.0 0.9

Ipca labs Buy 358 443 4,501 2,907 3,541 21.5 21.5 32.7 40.6 10.9 8.8 2.8 2.2 27.8 27.7 1.7 1.4

Lupin Buy 517 656 23,076 8,272 9,929 19.7 20.0 29.7 32.8 17.4 15.8 4.5 3.5 25.0 22.9 2.8 2.3Orchid Chemicals Buy 161 270 1,131 2,143 2,508 21.8 21.8 28.3 38.1 5.7 4.2 1.1 0.9 19.3 23.4 1.5 1.2

Ranbaxy* Neutral 479 - 20,228 12,023 12,264 19.9 16.9 41.1 36.9 11.7 13.0 2.5 2.2 30.0 17.6 1.4 1.3

Sun Pharma Accumulate 570 634 58,674 9,272 11,080 40.3 36.3 26.7 28.8 21.3 19.8 4.3 3.7 22.1 20.8 5.6 4.6

Power

CESC Buy 266 342 3,318 4,927 5,429 23.8 23.9 41.0 46.2 6.5 5.7 0.6 0.6 10.4 10.7 1.2 1.3

GIPCL Buy 63 98 954 1,557 1,573 28.7 27.5 10.4 10.2 6.1 6.2 0.6 0.6 10.5 9.6 1.1 0.9

NTPC Buy 148 201 122,321 73,558 84,843 23.4 23.6 12.6 14.1 11.8 10.5 1.5 1.4 13.3 13.6 2.4 2.2

Real Estate

Anant Raj Buy 53 78 1,568 657 875 52.0 56.1 8.4 12.7 6.3 4.2 0.4 0.4 6.3 8.9 3.7 2.7

DLF Neutral 187 - 31,811 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


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Real Estate

HDIL Buy 64 115 2,698 2,441 3,344 53.0 46.7 21.4 25.4 3.0 2.5 0.2 0.2 8.4 9.1 3.0 2.2

Telecom

Bharti Airtel Neutral 307 - 116,622 80,967 88,684 33.1 33.4 17.9 22.0 17.2 13.9 2.0 1.7 11.5 12.5 2.1 1.8

Idea Cellular Neutral 82 - 27,153 22,558 25,326 26.4 27.5 3.2 4.7 25.5 17.3 1.9 1.7 7.5 10.0 1.7 1.4

Rcom Neutral 68 - 13,963 21,899 23,740 32.7 32.7 4.2 6.7 16.0 10.1 0.3 0.3 2.1 3.2 2.1 1.7

zOthers

Bajaj Electrical Buy 199 245 1,982 3,670 4,384 8.5 8.5 18.3 22.3 10.9 8.9 2.4 2.0 23.9 24.3 0.5 0.5CRISIL Neutral 1,075 - 7,541 982 1,136 34.3 34.3 34.3 40.0 31.3 26.9 14.2 11.3 50.9 46.9 7.3 6.1

Finolex Cables Buy 38 60 574 2,341 2,656 8.5 8.8 8.0 10.0 4.7 3.8 0.7 0.6 18.1 20.2 0.2 0.1

Graphite India Buy 93 116 1,812 2,053 2,437 22.6 22.4 13.5 16.3 6.9 5.7 1.0 0.9 15.4 16.5 1.0 0.8

Greenply Buy 207 298 500 1,800 2,047 11.1 11.6 34.1 49.6 6.1 4.2 1.1 0.9 20.2 23.7 0.5 0.4

Page Industries Neutral 3,021 - 3,369 935 1,168 19.6 19.6 99.7 122.2 30.3 24.7 17.5 14.0 64.2 63.1 3.7 2.9

Sintex Buy 59 129 1,601 5,219 5,912 16.5 16.9 15.8 21.4 3.7 2.7 0.6 0.5 14.7 17.1 0.5 0.4

Siyaram Silk Mills Buy 254 439 238 1,045 1,173 12.3 12.4 61.5 73.2 4.1 3.5 0.8 0.7 20.2 20.4 0.5 0.4

SpiceJet Neutral 27 - 1,196 5,384 6,443 (1.0) 4.1 (3.4) 2.4 (7.9) 11.4 (11.0) 23.1 - - 0.4 0.4

Taj GVK Buy 58 116 361 322 355 36.3 35.8 8.3 9.6 6.9 6.0 1.0 0.8 14.5 14.9 1.5 1.2

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on May 11, 2012


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Market Outlook

Stock Watch


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May 14, 2012Market Outlook

market outlook 14th may 2012

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