market outlook 280512

7/31/2019 Market Outlook 280512

1/19

Market OutlookMay 28, 2012

www.angelbroking.com


Dealers Diary

The domestic markets are expected to open flat with a positive bias tracing positive

opening trades in most of the Asian bourses.

US markets closed modestly lower on Friday, after the stocks turned in another

lackluster performance. Traders largely shrugged off the release of a report from

Reuters and the University of Michigan showing that U.S. consumer sentiment in

the month of May improved by more than previously estimated. European markets

ended Friday in positive territory. Concerns still persist over a possible exit of

Greece from the Eurozone and the country is likely to remain in focus until it holds

second round of elections scheduled on June 17th. Spain also came in the

spotlight on the news that shares of Bankia had been halted ahead of the release

of the details of its rescue plan.

Indian benchmark indices ended largely unchanged on Friday, with a firm trend

across Europe limiting the downside. With pressure mounting on the government to

consider a partial rollback of a petrol price hike, investors awaited to see if the

government musters the courage to increase diesel and LPG prices for improving

fiscal health and to combat the deteriorating economic situation.

Markets Today

The trend deciding level for the day is 16,203 / 4,915 levels. If NIFTY trades above

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

up to 16,288 16,358 / 4,941 4,962 levels. However, if NIFTY trades below

16,203 / 4,915 levels for the first half-an-hour of trade then it may correct up to

16,133 16,048 / 4,895 4,869 levels.

SENSEX 16,048 16,133 16,203 16,288 16,358

NIFTY 4,869 4,895 4,915 4,941 4,962

News Analysis INR depreciation to boost export growth 4QFY2012 Result Reviews ITC, Sun TV, MOIL, Jagran, Crompton Greaves,

TVS Srichakra, Cravatex 4QFY2012 Result Previews Coal India, NMDC, Motherson Sumi, Britannia,

Sadbhav Engineering, Indoco RemediesRefer detailed news analysis on the following page

Net Inflows (May 23, 2012)

FII 1,533 1,853 (320) (927) 42,534

MFs 276 293 (17) 21 (6,080)

FII Derivatives (May 25, 2012)

Index Futures 1,256 1,654 (398) 12,712

Stock Futures 2,918 2,709 209 22,922

Gainers / Losers

Voltas 101 12.0 M & M Fin 615 (3.1)

Adani Enter 259 7.0 Jindal Steel 456 (2.6)

Jubl Food 1,241 5.9 Maruti Suzuki 1,117 (2.5)

Cummins India 427 4.0 Crompton Greav 106 (2.3)

NHPC 19 3.9 Gujarat Fluo 419 (2.3)

BSE Sensex (0.0) (4.5) 16,218

Nifty (0.0) (1.0) 4,920

MID CAP 0.4 25.7 5,901

SMALL CAP 0.5 33.5 6,318

BSE HC (0.1) (8.6) 6,640

BSE PSU 0.5 35.3 6,729

BANKEX 0.3 33.6 10,899

AUTO (0.1) (4.3) 9,239

METAL 0.9 92.3 10,089

OIL & GAS (0.1) (5.1) 7,578

BSE IT (0.1) (2.9) 5,523

Dow Jones (0.6) (74.9) 12,455NASDAQ (0.1) (1.9) 2,838

FTSE 0.0 1.5 5,352

Nikkei 0.2 17.0 8,580

Hang Seng 0.3 47.0 18,713

Straits Times (0.2) (6.8) 2,773

Shanghai Com (0.7) (17.4) 2,334

INFY (1.7) (0.7) $42.5

WIT 0.6 0.1 $8.7IBN (0.2) (0.1) $29.3

HDB (0.6) (0.2) $28.6

Advances 1,453 823

Declines 1,304 589

Unchanged 106 82

BSE 1,794

NSE 8,121


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INR depreciation to boost export growth

India's widening current account deficit has been a macro overhang of late

because of high domestic inflation as well as high crude prices, but this was being

masked by capital flows earlier. However, with this kind of high current account

deficit, we had maintained the view that the INR was likely to depreciate, and thisfinally got accentuated once capital flows diminished recently.

INR has depreciated by 13.8% in the last three months and 26.6% from its recent

highs of 44.1 in July 2011. If we take depreciation of all major currencies against

USD into account in the past three months and one year, the depreciation of INR

has been the highest (except Brazilian Zeal). The performance of other currencies

as against INR also corroborates the same fact. This, in our view, should provide

the requisite boost to India's exports specifically to gradually self-correct the deficit.

In the long run, an increase in exports will lead to improvement in trade account

and thereby result in higher GDP.

The clear beneficiaries of INR depreciation are IT companies, pharma companies

and export-oriented auto ancillary companies. In fact, as compared to the sharp

depreciation of INR, the Chinese Yuan has actually appreciated marginally over

the last one year against USD, thereby enhancing the competitiveness of Indian

products. The recent better competitive positioning of India due to the currency

depreciation is likely to aid future exports growth and we expect it to remain at

decent levels going ahead.

Exhibit 1:Depreciation / (appreciation) of various currencies against USDIndian Rupee 5.8 5.9 13.8 23.4 18.4Brazilian Zeal 7.7 8.7 19.8 25.3 0.6

Russian Ruble 8.2 8.3 9.0 12.1 2.4

Chinese Yuan 0.9 0.5 0.6 (2.5) (7.1)

South African Rand 7.6 7.2 10.3 19.8 1.2

Malaysia Ringgrit 3.8 2.5 4.3 3.0 (9.5)

Japanese Yen (0.4) (2.1) (1.7) (3.1) (15.8)

Indonesia Rupiah 3.2 3.2 3.6 10.7 (6.9)

Singapore Dollar 3.3 2.5 1.8 2.4 (11.3)

Australian Dollar 7.1 5.7 10.0 8.4 (19.4)

Korean Won 4.3 3.5 4.7 7.7 (5.5)

Hongkong Dollar 0.1 0.1 0.1 (0.2) 0.1

Thailand Baht 2.7 2.0 4.1 3.8 (8.1)

Swiss Franc 5.5 5.2 7.1 9.0 (11.6)

Canadian Dollar 4.1 4.0 3.0 5.1 (8.4)

Turkish Lira 5.2 3.8 4.8 15.7 19.5

Euro 5.4 5.2 7.3 12.3 11.7

GBP 3.6 3.0 1.3 3.3 1.6

Source: Company, Angel Research


3/19



Exhibit 2:Depreciation / (appreciation) of various currencies against INRBrazilian Zeal 1.8 2.6 5.2 1.8 (15.0)

Russian Ruble 2.1 2.3 (5.0) (9.2) (13.5)

Chinese Yuan (4.7) (5.1) (11.6) (20.9) (21.6)South African Rand 1.6 1.2 (3.2) (2.9) (14.5)

Malaysia Ringgrit (1.7) (3.1) (8.3) (16.4) (23.5)

Japanese Yen (5.9) (7.5) (13.6) (21.5) (28.9)

Indonesia Rupiah (2.6) (2.6) (9.1) (10.4) (21.5)

Singapore Dollar (2.4) (3.2) (10.6) (17.0) (25.2)

Australian Dollar 1.1 - (3.7) (12.0) (32.1)

Korean Won (1.5) (2.3) (8.0) (12.7) (20.0)

Hongkong Dollar (5.4) (5.4) (12.0) (19.2) (15.8)

Thailand Baht (2.9) (3.6) (8.6) (15.9) (22.4)

Swiss Franc - (0.6) (5.5) (11.3) (25.2)

Canadian Dollar (1.6) (2.1) (9.8) (14.8) (22.7)

Turkish Lira (0.6) (1.8) (7.8) (6.2) 0.9

Euro (0.3) (0.6) (5.7) (8.9) (5.5)

GBP (2.6) (3.4) (11.6) (16.8) (14.3)

Source: Company, Angel Research

Result Reviews

C (CMP : `232, TP : `252, Upside : 8.6%)

For 4QFY2012, ITC posted impressive17.2% yoy growth in its net sales to

`6,861cr. While growth in the cigarette business stood at 17.4% yoy, other FMCG

business posted strong 23.6% growth. The agri business also posted strong 30.8%

yoy growth. However, the hotels business reported a benign performance due to

the economic slowdown in the domestic and global economy. The companys

operating margin stood at 31.6%, up 96bp yoy due to higher realization on

cigarettes. However, the company faced margin pressures due to increased

packing-related and other input costs. Net profit rose by 26% yoy to `1,614cr.

FY2013E 28,955 35.9 7,143 9.2 34.8 25.3 8.1 16.4 5.9

FY2014E 33,595 35.7 8,187 10.5 33.1 22.1 6.7 14.3 5.1

Sun TV (CMP : `250, TP : - , Upside : - )

For 4QFY2012, Sun TVs consolidated net revenue dropped by 7.3% yoy to

`427cr. The decline in revenue was mainly on account of a 3% yoy drop in

advertisement revenue and loss of cable revenue from Tamil Nadu. The

companys EBITDA margin declined by ~216bp yoy to 76.9% on the back of

higher other expenditure (37.6%) on a yoy basis. Depreciation expense for the

company increased sharply by 57.5% to `107cr due to higher capex on movie


4/19



acquisition rights, upgradation of equipment and launch of HD channels.

Consequently, the companys net profit declined by 23.7% on a yoy basis to

`159cr. Currently, the stock is trading at FY2014E price to earnings multiple of

13x.

FY2013E 2,135 75.2 822 20.9 26.0 15.0 3.6 6.9 5.2

FY2014E 2,458 74.4 946 24.0 25.1 13.0 3.0 5.8 4.3

MOIL (CMP: `269, TP: Under Review)

MOIL reported its FY2012 results. The company's net sales for FY2012 declined by

21.1% to `900cr, below our estimate of `972cr. EBITDA for FY2012 declined by

43.5% to `4,332cr and EBITDA margin dipped by 1,910bp yoy to 48.2% on

account of slump in manganese ore prices. Other income for FY2012 increased

by 40% to `203cr. Consequently, net profit decreased by 30.1% yoy to `411cr, in-

line with our expectation of `408cr.

FY2013E 1,007 56.6 494 29.4 19.0 8.8 1.6 3.8 2.1FY2014E 1,091 56.9 536 31.9 18.2 8.1 1.4 3.0 1.7

Jagran (CMP: `86, TP: Under review)

For 4QFY2012, Jagran Prakashans consolidated net revenues grew by moderate

10.1% yoy to `303cr. Top-line growth was mainly on account of ~11.5% yoy

growth in advertisement revenues to `210.3cr and healthy ~12.4% yoy growth in

circulation revenues to `62.8cr. The companys EBITDA margin declined by

~395bp yoy to 19.4%, on back of higher newsprint costs on a yoy basis.

Consequently, Net profit for the company remained flat on a yoy basis to `43cr.

Currently, the stock is trading at FY2014E price to earnings multiple of 12.6x.

FY2013E 1,499 27.4 241 7.6 34.6 12.6 4.2 7.8 2.1

FY2014E 1,642 28.8 287 9.1 37.7 10.6 3.8 6.7 1.9

Crompton Greaves (CMP: `106 / TP: `164 / Upside: 55%)

Crompton Greaves announced a weak set of 4QFY2012 results. The company

reported a 5.8% increase in its top line to `3,077cr, slightly lower than our

expectation of `3,170cr. The quarter witnessed EBITDA margin contraction of590bp yoy to 6.9%, in-line with the previous three quarters and lower than our

expectation of 8.0%. PAT for the quarter declined by 60.1% yoy to `100cr

(`251cr), against our expectation of `150cr. At the CMP of `106, the stock is


5/19



trading at 9.7x and 9.0x on our FY2013E and FY2014E earnings estimates,

respectively.

We will revise our estimates and release a detailed results review shortly.

FY2013E 12,936 7.3 699 10.9 18.5 9.7 1.7 5.9 0.6

FY2014E 14,101 7.7 753 11.7 17.3 9.0 1.5 4.9 0.5

TVS Srichakra (CMP `340, TP - `460, Upside: 36%)

For 4QFY2012, TVS Srichkara posted a decent set of numbers. The company

reported 15% yoy growth in its top line; however, it was flat on a qoq basis and

came in at `348cr against our estimate of `376cr. The company was able to

sustain its operating margin for the quarter at 7.4%, which was a marginal

expansion of 34bp on a qoq basis; however, it contracted by 103bp yoy. Other

income for the quarter increased by 180% on a qoq basis to `5.4cr. The company

reported profit of `10cr, 48.2% qoq growth, in-line with our estimate for

4QFY2012. For FY2012, the company reported a 28.6% increase in its revenue to

`1,396cr (`1,085cr). Operating margin was flat on a yoy basis to 8.3%, in-line

with our estimate. Profit for the year was also flat at `40cr (`39cr), in-line with our

estimate. The stock is currently trading at PE of 3.7x for FY2014E. The company

has recommended dividend @ 135%, i.e., `13.50 per share for FY2012. Backed

by stabilizing rubber prices, depreciating INR and the companys rigorous

advertisements, our outlook for the company remains positive.

FY2013E 1,612 9.6 57 73.8 34.3 4.6 1.4 4.2 0.4

FY2014E 1,827 9.8 71 92.1 32.4 3.7 1.0 3.6 0.4

Cravatex (CMP `658, TP: `771, Upside: 17%)

For 4QFY2012, Cravatex top line grew by 164% yoy and came in at `60cr, 21%

higher than our estimate of `50cr. Annual top line grew by healthy 160% to

`241cr mainly on account of healthy growth of 130% in domestic sales and

additional sales under the sub license acquired from FILA. The companys EBITDA

came in at `3.2cr. The companys margin improved marginally by 9bp on a

sequential basis and came in at 5.25%. EBITDA for the year was higher by 105%

at `14.1cr, but margin dipped by 160bp. The dip is assumed to be due to rupee

depreciation, as raw-material cost as a percentage of sales rose by ~1,400bp.

Profit for the quarter stood at `1.21cr, slightly lower than our estimate of `1.3cr,

as compared to `2.9cr in 3QFY2012. Net profit for the year grew by 53% to

`9.7cr, but margin dipped by 290bp.


6/19



FY2013E 301 3.8 9 35 13.9 18.7 4.4 17.3 0.7

FY2014E 362 5.6 17 64 22.2 10.2 3.1 9.6 0.5

Result Previews

Coal India is slated to report its 4QFY2012 results. We expect net sales to increase

by 17.1% yoy to `17,672cr mainly on account of coal price hike taken during

February 2011. However, EBITDA margin is expected to contract by 1,623bp yoy

to 26.8% in 4QFY2012 on account of higher employee cost provision.

Nevertheless, net profit is expected to decrease by only 5.9% yoy to`

3,958cr asthe decrease in operating profit is expected to be partially offset by increased

interest income.

NMDC is slated to announce its 4QFY2012 results. We expect the companys top

line to decrease by 33.1% yoy to `2,524cr on account of lower sales volumes as

well as realizations. On the operating front, EBITDA is expected to decrease by

29.2% yoy to `1,939cr. The bottom line is expected to decrease by 27.2% yoy to

`1,528cr.

Motherson Sumi Systems is scheduled to announce its 4QFY2012 results. On a

consolidated basis, we expect the company to report ~145% yoy growth in its

revenue to `5,686cr mainly on account of consolidation of Peguform operations.

On the operating front, the company is expected to report a ~350bp yoy

contraction in its margin to 7.5%. As a result, net profit is expected to increase by

~14% yoy to`

158cr.

Britannia Industries (Britannia) is slated to announce its 4QFY2012 numbers. For

the quarter, we expect Britannia to post decent 15.3% yoy growth in its top line to

`1,299cr aided by price hikes. OPM is expected to increase by 65bp yoy to 7.1%.

The bottom line is expected to grow by 23.5% yoy to `53cr, aided by good

operational performance.


7/19



We expect Sadbhav Engineering (SEL) to post a weak numbers on account of high

base in 4QFY2011. Revenue is expected to decline by 18.2% to `856.2cr.

However, on a sequential basis, it implies growth of 18.3%. EBITDA margin is

expected to witness a jump of 130bp yoy to 10.0% on account of low EBITDAM

posted in 4QFY2011 due to higher sub-contracting charges. On the earnings

front, the company is expected to post a decline of 1.9% yoy to `52.9cr.

For the 4QFY2012, Indoco Remedies is expected to report top-line growth of

28.7% yoy to `155cr. The company's OPM is expected to expand by 120bp yoy to

14.1%, driven by growth in domestic formulation sales. As a result, net profit isexpected to increase by 31.6% yoy to `16.0cr on the back of improvement in

OPM.

Quarterly Bloomberg Brokers Consensus Estimate

Net sales 1,101 796 38 921 20

EBITDA 251 199 26 239 5

EBITDA margin (%) 22.8 25.0 26.0

Net profit 114 100 14 103 11

Net sales 126,610 86,880 46 98,272 29

EBITDA 11,928 5,783 106 11,158 7

EBITDA margin (%) 9.4 6.7 11.4

Net profit 8,456 3,905 117 2,488 240

Net sales 2,756 3,770 (27) 2,822 (2)

EBITDA 2,016 2,739 (26) 2,261 (11)

EBITDA margin (%) 73.1 72.7 80.1

Net profit 1,784 2,099 (15) 1,859 (4)

Net sales 2,024 1,962 3 1,999 1

EBITDA 510 (373) (237) 469 9EBITDA margin (%) 25.2 -19.0 23.5

Net profit (79) (936) -) (192) -


8/19



Net sales 50,762 39,667 28 47,917 6

EBITDA 4,967 2,201 126 3,703 34

EBITDA margin (%) 9.8 5.5 7.7

Net profit 4,384 1,123 290 2,725 61

Net sales 16,911 15,396 10 18,124 (7)

EBITDA 9,312 7,972 17 11,051 (16)

EBITDA margin (%) 55.1 51.8 61.0

Net profit 4,058 2,791 45 6,741 (40)

Net profit 4,058 2,791 45 6,741 (40)

Net sales 12,769 11,945 7 10,594 21

EBITDA 2,079 2,340 (11) 1,581 31

EBITDA margin (%) 16.3 19.6 14.9

Net profit 1,269 1,507 (16) 632 101

Net sales 2,062 1,463 41 2,145 (4)

EBITDA 828 510 62 964 (14)

EBITDA margin (%) 40.2 34.9 44.9

Net profit 661 443 49 565 17

Net sales 49,815 36,452 37 45,199 10

EBITDA 7,390 4,675 58 6,827 8

EBITDA margin (%) 14.8 12.8 15.1

Net profit 3,865 2,638 47 3,427 13


9/19



Net sales 1,850 1,597 16 1,954 (5)

EBITDA 230 233 (1) 200 15

EBITDA margin (%) 12.4 14.6 10.2

Net profit 59 77 (23) 47 26

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

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

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)

Net sales 450 524 (14) 90 400

EBITDA 222 256 (13) 51 335

EBITDA margin (%) 49.3 48.9 56.7

Net profit 156 197 (21) 24 550

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

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)


10/19



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

Share of direct tax to touch 12% of GDP: Pranab Mukherjee Government mulling private sector corruption law High spectrum prices disincentive to investment in India: GSMACorporate News

RIL buyback gains pace; purchases shares worth Rs 1,481 crore Airtel to roll out 3G in Rwanda in the next quarter Reliance Power synchronizes two units of 2,400 MW Samalkot projectSource: Economic Times, Business Standard, Business Line, Financial Express, Mint


11/19

Date Company

May 28, 2012NMDC, IOC, Motherson Sumi, Bharat Forge, Britannia, Bajaj Electrical, Sadbhav Engg., Amara Raja Batteries, IndocoRemedies, Subros

May 29, 2012ONGC, Tata Motors, Sun Pharma, Power Grid Corpn, SAIL, United Spirits, HPCL, GMR Infra., Aurobindo Pharma,Ipca labs, Nagarjuna Const., Prakash Industries, PVR

May 30, 2012 GAIL, M&M, DLF, Jaiprakash Asso., Colgate, Tata Chemicals, HDIL, Page Industries, BGR Energy , PTC India, AnantRaj, GIPCL, Simplex Infra, SpiceJet, Greenply

May 31, 2012 -

June 01, 2012 Mphasis

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

May 29, 2012 US Consumer ConfidenceS.A./

1985=100Apr-12 69.20 69.50

May 30, 2012 Euro ZoneEuro-Zone ConsumerConfidence

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 - 6.10 6.00

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) --



May 28, 2012

Market Outlook


12/19

Market StrategyMay 28, 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

9.6 9.5 9.4 9.810.0 9.9 9.5

7.76.9

7.46.9 7.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

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

(%)

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

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

May-1

2

Repo rate Reverse Repo rate CRR(%)

Source: RBI, Angel Research


13/19

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 127 - 2,472 1,432 1,647 14.7 14.7 7.0 8.0 18.2 15.9 3.8 3.3 22.8 22.3 1.7 1.5

United Phosphorus Buy 115 183 5,287 8,191 8,764 16.5 16.5 17.1 18.3 6.7 6.3 1.1 1.0 17.5 16.2 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Buy 297 345 2,539 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 Accumulate 88 100 4,418 13,699 15,184 10.5 10.2 12.1 13.3 7.3 6.6 1.3 1.1 19.7 18.4 0.5 0.4

Ashok Leyland Buy 24 33 6,426 14,798 16,687 9.6 9.6 2.4 3.0 10.0 8.1 2.0 1.7 14.8 16.5 0.5 0.4

Automotive Axle Accumulate 456 514 688 1,211 1,387 12.1 11.7 50.3 57.1 9.1 8.0 2.3 1.9 27.8 25.7 0.6 0.5Bajaj Auto Buy 1,496 1,835 43,299 22,118 24,889 19.0 18.6 115.7 126.5 12.9 11.8 5.2 4.1 45.0 38.9 1.5 1.3

Bharat Forge Buy 309 372 7,201 7,173 7,998 16.3 16.5 22.3 26.6 13.9 11.6 2.7 2.3 21.0 21.0 1.1 0.9

Bosch India Accumulate 8,834 9,429 27,737 9,390 10,716 19.5 19.1 420.2 471.4 21.0 18.7 4.9 4.1 23.3 21.8 2.7 2.3

CEAT Buy 94 164 323 5,067 5,631 8.0 7.6 39.4 41.0 2.4 2.3 0.4 0.4 18.8 16.5 0.3 0.3

Exide Industries Buy 124 146 10,540 5,787 6,595 15.5 17.0 7.1 9.0 17.4 13.9 3.1 2.6 18.6 20.3 1.5 1.2

FAG Bearings Neutral 1,595 - 2,650 1,531 1,748 18.8 18.5 118.0 132.8 13.5 12.0 2.9 2.4 24.0 21.9 1.5 1.2

Hero Motocorp Buy 1,842 2,280 36,782 26,106 29,296 15.0 15.2 140.3 148.1 13.1 12.4 6.2 4.8 54.8 43.3 1.1 0.9

JK Tyre Buy 76 113 310 8,058 9,025 5.4 5.5 24.8 32.2 3.0 2.4 0.3 0.3 11.4 13.2 0.3 0.3

Mahindra and Mahindra Buy 638 793 39,181 34,740 39,263 10.7 11.0 44.9 51.7 14.2 12.4 2.5 2.2 18.9 19.1 0.8 0.7

Maruti Buy 1,117 1,510 32,273 42,683 48,736 7.1 7.5 86.6 100.6 12.9 11.1 1.8 1.6 15.3 15.5 0.6 0.5

Motherson Sumi Buy 166 216 6,413 11,167 12,516 9.5 10.0 11.3 14.4 14.6 11.5 3.2 2.6 23.3 24.7 0.7 0.6

Subros Neutral 30 - 183 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 Buy 269 312 71,785 191,183 210,301 12.8 12.8 39.4 43.6 6.8 6.2 2.4 1.9 40.4 34.3 0.5 0.4

TVS Motor Buy 34 55 1,613 7,982 8,816 6.4 6.3 5.0 5.6 6.8 6.1 1.2 1.0 18.9 18.2 0.2 0.2

Capital Goods

ABB* Sell 725 498 15,355 8,760 10,023 6.4 6.4 18.2 20.7 39.8 34.9 5.4 4.8 14.4 14.6 1.7 1.5BGR Energy Reduce 294 274 2,119 4,170 5,396 11.5 10.4 27.2 30.4 10.8 9.7 1.8 1.6 17.3 17.4 1.1 1.0

BHEL Neutral 208 - 51,008 46,344 46,916 18.3 18.6 23.5 24.1 8.9 8.7 1.8 1.5 21.3 18.9 1.0 0.9

Blue Star Buy 160 221 1,443 3,250 3,551 5.9 5.9 12.4 15.8 12.9 10.2 2.6 2.2 21.2 23.8 0.5 0.4

Crompton Greaves Buy 106 164 6,803 12,936 14,101 9.6 10.0 10.9 11.7 9.8 9.0 1.7 1.5 18.4 17.3 0.5 0.5

Jyoti Structures Buy 38 67 309 2,622 2,801 10.6 11.0 10.9 13.4 3.5 2.8 0.4 0.4 12.7 13.9 0.3 0.3

KEC International Buy 51 73 1,306 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 1,546 2,609 1,742 2,663 3,130 12.8 12.8 185.0 217.4 8.4 7.1 1.7 1.5 21.2 21.7 0.2 0.1

Thermax Neutral 434 - 5,166 5,514 5,559 8.3 8.0 29.7 28.4 14.6 15.3 2.8 2.4 20.2 16.9 0.8 0.8


May 28, 2012

Market Outlook

Stock Watch


14/19



Cement

ACC Neutral 1,144 - 21,477 11,018 12,663 19.9 21.2 70.7 81.2 16.2 14.1 2.8 2.6 18.0 19.0 1.7 1.4

Ambuja Cements Neutral 144 - 22,066 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 76 - 2,339 4,423 4,906 18.2 18.8 9.9 12.7 7.7 6.0 0.7 0.6 8.6 10.5 0.8 0.7

J K Lakshmi Cements Buy 63 79 770 1,938 2,246 19.1 20.1 14.6 16.1 4.3 3.9 0.6 0.5 13.4 13.6 0.5 0.9

Madras Cements Neutral 135 - 3,202 3,444 3,786 25.5 24.9 14.6 17.1 9.3 7.9 1.4 1.2 15.6 16.0 1.6 1.3

Shree Cements Neutral 2,543 - 8,857 5,465 6,249 24.3 23.7 151.5 222.1 16.8 11.5 4.0 3.4 21.6 25.8 1.3 1.0

UltraTech Cement Neutral 1,379 - 37,807 20,116 22,655 21.3 22.5 82.1 97.5 16.8 14.2 2.7 2.3 16.8 17.4 1.8 1.7Construction

Ashoka Buildcon Buy 201 302 1,059 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 - 1,113 4,239 4,522 11.1 11.8 (1.8) (0.8) (10.2) (23.5) 1.1 1.2 (9.5) (4.7) 1.3 1.2

IRB Infra Buy 114 166 3,776 3,821 4,582 42.3 40.2 15.0 16.9 7.6 6.7 1.1 1.0 16.1 15.8 2.6 2.4

ITNL Buy 173 265 3,359 6,619 7,925 23.8 23.3 22.0 26.7 7.9 6.5 1.1 1.0 14.9 15.9 2.2 2.1

IVRCL Infra Buy 43 79 1,137 5,758 6,860 9.2 9.2 4.7 6.0 9.1 7.1 0.5 0.5 6.0 7.3 0.7 0.6

Jaiprakash Asso. Buy 61 104 13,014 16,017 18,359 24.4 23.5 4.2 5.0 14.6 12.2 1.2 1.1 8.8 9.7 2.1 1.9

Larsen & Toubro Buy 1,186 1,553 72,655 59,559 69,089 12.1 11.5 70.8 76.5 16.8 15.5 2.5 2.2 16.1 15.3 1.4 1.2

Madhucon Proj Buy 42 70 308 2,206 2,502 10.7 10.7 4.6 4.7 9.0 8.9 0.5 0.4 5.2 5.0 0.7 0.7

Nagarjuna Const. Buy 31 76 798 5,790 7,022 9.2 9.5 3.5 5.4 8.9 5.8 0.3 0.3 3.7 5.6 0.8 0.7

Patel Engg. Neutral 85 - 594 3,609 3,836 13.1 13.1 14.0 14.6 6.1 5.9 0.4 0.4 6.3 6.1 1.0 1.1

Punj Lloyd Neutral 46 - 1,519 10,592 12,193 8.4 8.4 2.9 4.6 15.8 10.1 0.5 0.5 3.9 3.1 0.6 0.6

Sadbhav Engg. Buy 124 199 1,861 2,989 3,315 10.6 10.6 10.2 11.3 12.2 11.0 1.9 1.7 17.6 16.3 0.8 0.8

Simplex Infra Buy 216 316 1,066 6,732 7,902 9.3 9.6 27.2 35.1 7.9 6.1 0.8 0.7 11.0 12.6 0.5 0.4

FinancialsAllahabad Bank Buy 137 166 6,868 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 104 - 5,820 5,151 5,843 3.2 3.1 22.4 25.7 4.6 4.1 0.7 0.6 15.8 16.0 - -

Axis Bank Buy 1,001 1,476 41,404 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 672 925 26,306 15,993 18,918 2.6 2.6 127.3 149.9 5.3 4.5 0.9 0.8 17.8 18.2 - -

Bank of India Buy 321 411 18,395 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 53 2,839 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 397 522 17,583 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 - 5,488 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 28, 2012

Market Outlook

Stock Watch


15/19



Financials

Corporation Bank Buy 408 486 6,046 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 86 111 3,000 3,149 3,522 2.8 2.8 23.3 26.1 3.7 3.3 0.6 0.5 17.7 17.0 - -

Federal Bank Neutral 413 - 7,058 2,743 3,131 3.4 3.3 49.7 57.4 8.3 7.2 1.1 1.0 14.1 14.6 - -

HDFC Neutral 657 - 97,067 7,393 8,844 3.5 3.4 31.7 37.9 20.7 17.3 4.1 3.7 34.7 31.9 - -

HDFC Bank Accumulate 500 567 117,491 21,831 27,477 4.3 4.3 28.3 35.5 17.7 14.1 3.4 2.9 20.8 22.1 - -

ICICI Bank Buy 816 1,174 93,773 22,209 26,512 2.8 2.8 67.9 81.1 12.0 10.1 1.4 1.3 14.7 16.0 - -

IDBI Bank Buy 87 117 11,122 8,004 9,589 1.9 2.0 19.9 23.9 4.4 3.6 0.6 0.5 13.8 14.9 - -Indian Bank Accumulate 173 197 7,424 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 6,416 7,354 8,283 2.5 2.4 16.3 21.7 5.0 3.7 0.6 0.5 11.5 13.9 - -

J & K Bank Neutral 920 - 4,459 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 242 286 12,193 2,108 2,607 2.6 2.6 24.5 30.6 9.9 7.9 1.8 1.6 20.1 21.4 - -

Oriental Bank Buy 224 274 6,535 6,431 7,315 2.7 2.6 54.4 63.8 4.1 3.5 0.6 0.5 13.6 14.3 - -

Punjab Natl.Bank Buy 726 1,015 24,626 19,893 23,653 3.1 3.2 153.4 175.2 4.7 4.2 0.9 0.7 18.3 18.1 - -

South Ind.Bank Neutral 22 - 2,491 1,399 1,596 2.6 2.5 3.5 3.8 6.3 5.8 1.1 1.0 18.7 17.5 - -

St Bk of India Buy 2,005 2,486 134,544 68,925 80,565 3.7 3.7 236.6 282.7 8.5 7.1 1.4 1.2 18.6 19.3 - -

Syndicate Bank Buy 89 131 5,369 7,133 8,255 3.0 3.0 25.9 30.0 3.4 3.0 0.5 0.5 16.9 17.1 - -

UCO Bank Neutral 67 - 4,483 5,623 6,380 2.4 2.4 16.9 17.9 4.0 3.8 0.7 0.7 16.5 15.4 - -

Union Bank Buy 205 276 11,292 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 57 78 2,063 3,551 4,128 2.7 2.8 18.8 22.6 3.1 2.5 0.5 0.4 15.5 16.5 - -

Vijaya Bank Neutral 53 - 2,639 2,668 3,001 2.2 2.2 10.6 12.2 5.0 4.4 0.7 0.6 13.3 13.8 - -

Yes Bank Buy 331 450 11,699 3,209 4,144 2.7 2.8 33.9 41.5 9.8 8.0 2.1 1.7 23.1 23.3 - -

FMCG

Asian Paints Neutral 3,757 - 36,039 11,423 13,309 16.3 16.3 125.3 148.4 30.0 25.3 10.2 8.0 38.0 35.4 3.1 2.6Britannia Buy 529 650 6,314 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 1,209 - 16,442 3,007 3,417 21.1 22.1 37.7 42.6 32.1 28.4 38.2 30.9 129.4 120.1 5.3 4.7

Dabur India Neutral 104 - 18,100 5,878 6,799 16.8 17.0 4.2 4.9 25.1 21.2 9.1 7.4 39.3 42.0 3.1 2.7

GlaxoSmith Con* Neutral 2,585 - 10,873 3,124 3,663 17.1 11.6 103.0 123.3 25.1 21.0 7.7 6.2 34.0 32.9 3.2 2.6

Godrej Consumer Neutral 552 - 18,786 5,973 7,000 18.4 18.6 22.8 27.2 24.2 20.3 6.6 5.4 31.3 38.4 3.3 2.8

HUL Neutral 421 - 90,989 25,350 29,309 14.3 14.4 14.1 16.4 29.8 25.7 22.3 17.4 82.7 76.2 3.4 2.9

ITC Accumulate 232 252 181,192 28,955 33,595 35.9 35.7 9.2 10.5 25.3 22.1 8.1 6.7 34.8 33.1 6.0 5.1


May 28, 2012

Market Outlook

Stock Watch


16/19



FMCG

Marico Neutral 177 - 11,430 4,667 5,427 12.8 12.9 6.6 8.1 26.7 21.8 7.2 5.6 30.0 28.8 2.5 2.1

Nestle* Neutral 4,545 - 43,818 8,731 10,539 21.0 21.4 119.3 147.9 38.1 30.7 23.4 15.9 73.0 61.6 5.1 4.1

Tata Global Buy 108 136 6,676 7,011 7,712 9.7 10.0 6.0 7.1 18.2 15.1 1.7 1.6 8.9 10.2 0.8 0.8

IT

HCL Tech Accumulate 487 560 33,738 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 125 - 3,711 1,821 2,105 19.0 18.6 9.8 10.7 12.8 11.7 3.0 2.6 23.7 22.5 1.8 1.5

Infosys Buy 2,372 2,792 136,207 37,615 42,491 31.1 30.6 158.5 174.5 15.0 13.6 3.4 2.8 22.5 20.8 3.0 2.5Infotech Enterprises Accumulate 158 177 1,765 1,758 1,972 17.0 16.6 16.8 18.6 9.4 8.5 1.3 1.1 13.6 13.2 0.6 0.5

KPIT Cummins Neutral 119 - 2,110 2,028 2,239 15.0 14.8 9.0 11.4 13.2 10.4 2.4 2.0 19.3 18.7 1.0 0.9

Mahindra Satyam Accumulate 76 86 8,979 7,097 7,812 16.2 16.0 7.5 8.0 10.2 9.6 1.3 1.2 13.2 12.3 0.9 0.7

Mindtree Neutral 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 374 433 7,848 5,904 6,320 18.3 17.9 38.7 41.2 9.7 9.1 1.4 1.2 14.9 13.7 0.9 0.7

NIIT Buy 39 52 637 1,162 1,304 14.8 15.1 7.1 8.8 5.4 4.4 0.9 0.8 16.7 18.4 0.4 0.3

Persistent Accumulate 340 361 1,359 1,109 1,224 23.3 22.4 37.2 40.1 9.1 8.5 1.4 1.2 15.4 14.5 0.9 0.7

TCS Neutral 1,222 - 239,084 57,189 66,329 29.3 28.7 63.2 70.9 19.3 17.2 5.9 4.8 30.5 27.7 3.9 3.3

Tech Mahindra Accumulate 665 725 8,476 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 394 430 96,780 41,918 46,879 19.4 19.9 25.1 28.7 15.7 13.7 2.9 2.5 18.6 18.3 2.0 1.6

Media

D B Corp Buy 200 269 3,663 1,652 1,863 25.7 26.3 13.5 16.1 14.8 12.4 3.3 2.8 24.1 24.4 2.1 1.8

HT Media Buy 111 148 2,612 2,255 2,555 16.3 16.7 9.0 10.6 12.4 10.5 1.5 1.4 13.4 13.8 0.8 0.6

Jagran Prakashan Buy 86 137 2,726 1,499 1,642 27.4 28.8 7.6 9.1 11.3 9.5 3.8 3.4 34.6 37.7 1.8 1.6

PVR Neutral 150 - 390 625 732 17.4 16.9 12.4 15.8 12.1 9.5 1.9 2.0 8.5 9.9 0.8 0.7

Sun TV Network Neutral 251 - 9,893 2,135 2,458 75.2 74.4 20.9 24.0 12.0 10.5 2.8 2.4 26.0 25.1 3.6 2.9Metals & Mining

Bhushan Steel Neutral 439 - 9,327 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 313 351 197,860 65,654 71,756 26.8 27.3 24.0 26.3 13.0 11.9 3.6 2.9 30.4 27.0 2.0 1.7

Electrosteel Castings Buy 19 27 666 1,984 2,074 10.6 12.0 2.7 3.3 7.2 5.9 0.4 0.1 5.2 6.2 0.4 0.4

Hind. Zinc Buy 117 139 49,288 13,043 14,223 51.8 52.8 14.8 16.6 7.9 7.0 1.5 1.3 21.2 19.9 2.1 1.5

Hindalco Neutral 112 - 21,405 84,652 88,766 9.6 10.5 17.0 18.9 6.6 5.9 0.6 0.6 9.7 9.8 0.5 0.5

JSW Steel Accumulate 607 663 13,544 39,592 44,910 18.0 17.7 74.7 88.9 8.1 6.8 0.8 0.7 10.7 11.6 0.7 0.7

MOIL Reduce 269 255 4,524 979 1,061 45.7 46.8 24.5 26.6 11.0 10.1 1.7 1.5 16.1 15.8 2.5 2.1

Monnet Ispat Buy 420 593 2,700 3,115 3,748 22.1 25.1 59.1 66.8 7.1 6.3 1.0 0.9 15.6 15.3 1.6 1.2


May 28, 2012

Market Outlook

Stock Watch


17/19



Metals & Mining

Nalco Reduce 57 51 14,652 8,276 8,578 12.7 16.4 2.5 3.5 22.4 16.2 1.2 1.2 5.6 7.5 1.3 1.3

NMDC Accumulate 171 185 67,717 11,726 12,890 77.8 78.4 18.6 20.6 9.2 8.3 2.2 1.8 26.1 23.8 3.6 3.1

SAIL Accumulate 93 102 38,290 52,461 62,935 18.0 18.8 13.2 14.5 7.0 6.4 0.8 0.8 12.4 12.3 1.1 1.0

Sesa Goa Accumulate 182 206 15,774 9,067 9,316 35.7 35.5 44.5 44.3 4.1 4.1 0.9 0.7 23.5 19.5 0.3 -

Sterlite Inds Buy 97 123 32,531 45,805 49,029 21.2 23.5 16.5 19.1 5.9 5.1 0.6 0.6 11.5 12.0 0.3 0.2

Tata Steel Buy 408 499 39,650 143,088 148,011 10.9 12.1 53.9 66.0 7.6 6.2 0.9 0.8 12.2 13.4 0.6 0.6

Oil & GasCairn India Accumulate 324 372 61,859 15,513 16,074 74.0 69.7 51.1 48.6 6.4 6.7 1.1 0.9 18.3 14.8 2.8 2.1

GAIL Buy 336 392 42,659 50,472 55,503 15.3 15.6 35.4 37.0 9.5 9.1 1.7 1.5 18.7 17.0 0.5 0.4

ONGC Buy 257 319 219,962 148,157 150,563 37.6 39.5 31.0 33.6 8.3 7.7 1.5 1.3 18.8 18.1 1.1 1.0

Reliance Industries Buy 692 872 226,599 325,734 328,669 10.9 11.7 65.8 70.1 10.5 9.9 1.1 1.0 11.9 11.5 0.7 0.6

Pharmaceuticals

Alembic Pharma Buy 50 91 944 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 117 175 3,400 5,243 5,767 14.6 14.6 13.8 14.7 8.5 8.0 1.0 0.4 11.4 10.9 1.0 0.9

Aventis* Neutral 2,077 - 4,784 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 745 953 15,251 6,196 7,443 18.5 19.5 43.3 50.8 17.2 14.7 4.4 3.6 25.4 24.8 2.5 2.0

Cipla Buy 309 379 24,822 7,687 8,804 21.4 21.4 16.5 18.9 18.7 16.4 2.9 2.6 16.7 16.8 3.2 2.7

Dr Reddy's Neutral 1,693 - 28,688 10,696 11,662 20.7 21.0 83.7 92.9 20.2 18.2 4.2 3.5 22.4 21.0 2.8 2.5

Dishman Pharma Buy 51 92 412 1,280 1,536 17.8 17.8 9.2 11.3 5.6 4.5 0.4 0.4 7.7 8.5 1.0 0.8

GSK Pharma* Neutral 1,991 - 16,862 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 59 665 542 685 837 15.2 15.2 55.5 66.5 1.1 0.9 0.2 0.1 16.4 16.9 1.0 0.9

Ipca labs Buy 334 443 4,200 2,907 3,541 21.5 21.5 32.4 40.6 10.3 8.2 2.6 2.1 27.8 27.7 1.6 1.3

Lupin Buy 533 646 23,806 8,426 10,082 19.7 20.0 29.7 32.4 17.9 16.5 4.7 3.7 27.0 25.2 2.7 2.2Orchid Chemicals Buy 123 178 865 2,117 2,434 17.7 17.7 16.7 22.2 7.4 5.5 0.7 0.6 9.5 11.5 1.1 0.9

Ranbaxy* Neutral 530 - 22,385 12,046 11,980 18.0 15.8 35.7 29.8 14.9 17.8 5.6 4.5 43.1 28.1 1.9 1.8

Sun Pharma Accumulate 571 634 58,813 9,272 11,080 40.3 36.3 26.7 28.8 21.4 19.8 4.3 3.7 22.1 20.8 5.6 4.6

Power

CESC Buy 269 342 3,363 5,084 5,512 24.2 23.8 45.2 48.5 6.0 5.6 0.6 0.6 11.2 10.9 1.1 1.1

GIPCL Buy 62 98 932 1,557 1,573 28.7 27.5 10.4 10.2 5.9 6.1 0.6 0.6 10.5 9.6 1.1 0.9

NTPC Accumulate 142 158 116,921 74,766 86,549 23.1 23.4 12.4 14.1 11.4 10.1 1.4 1.3 13.0 13.5 2.3 2.1

Real Estate

Anant Raj Buy 47 78 1,393 657 875 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 - 32,006 9,878 12,033 44.7 46.1 9.6 13.4 19.7 14.1 1.3 1.2 6.4 8.7 5.7 4.7


May 28, 2012

Market Outlook

Stock Watch


18/19



Real Estate

HDIL Buy 63 115 2,633 2,441 3,344 53.0 46.7 21.4 25.4 2.9 2.5 0.2 0.2 8.4 9.1 2.9 2.2

Telecom

Bharti Airtel Neutral 299 - 113,413 80,967 88,684 33.1 33.4 17.9 22.0 16.7 13.6 1.9 1.7 11.5 12.5 2.1 1.8

Idea Cellular Neutral 78 - 25,681 22,558 25,326 26.4 27.5 3.2 4.7 24.1 16.4 1.8 1.6 7.5 10.0 1.6 1.4

Rcom Neutral 66 - 13,540 21,899 23,740 32.7 32.7 4.2 6.7 15.5 9.8 0.3 0.3 2.1 3.2 2.0 1.7

zOthers

Bajaj Electrical Accumulate 220 245 2,190 3,670 4,384 8.5 8.5 18.3 22.3 12.0 9.9 2.6 2.2 23.9 24.3 0.6 0.5CRISIL Neutral 1,066 - 7,482 982 1,136 34.3 34.3 34.3 40.0 31.1 26.7 14.1 11.2 50.9 46.9 7.2 6.1

Finolex Cables Buy 36 61 557 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 1,769 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 210 298 507 1,800 2,047 11.1 11.6 34.1 49.6 6.2 4.2 1.1 0.9 20.2 23.7 0.5 0.4

Page Industries Neutral 3,077 - 3,432 935 1,168 19.6 19.6 99.7 122.2 30.9 25.2 17.9 14.3 64.2 63.1 3.7 3.0

Sintex Buy 55 129 1,504 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 265 439 248 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 31 - 1,521 5,384 6,443 (1.0) 4.1 (3.4) 2.4 (9.2) 13.2 (12.7) 26.8 - - 0.5 0.4

Taj GVK Buy 59 108 367 300 319 35.8 36.2 7.9 9.1 7.4 6.4 1.0 0.9 13.9 14.4 1.5 1.3

Goodyear Accumulate 329 372 760 1,571 1,753 7.2 8.6 29.8 42.4 11.0 7.8 2.1 1.7 20.2 24.3 0.3 0.2

HEG Buy 208 242 830 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 1.0

Hitachi Buy 121 160 277 857 968 6.9 8.4 10.2 16.0 11.9 7.6 1.5 1.2 12.9 17.8 0.4 0.4

Honeywell Automation Neutral 2,598 - 2,297 1,542 1,739 9.4 10.0 116.1 140.8 22.4 18.5 3.2 2.7 15.5 15.9

Ineos ABS Neutral 750 - 1,319 900 1,011 10.2 11.5 35.6 45.7 21.1 16.4 3.1 2.6 15.4 17.2

ITD Cementation Neutral 236 - 271 1,535 1,842 11.1 11.1 27.3 38.3 8.6 6.2 0.7 0.6 7.9 10.2 0.6 0.6

MRF Buy 10,825 13,106 4,591 12,390 14,400 10.4 11.3 1,334.6 1,638.2 8.1 6.6 1.6 1.3 16.5 17.4 0.6 0.5Relaxo Accumulate 422 478 507 1,019 1,208 11.0 10.8 44.9 53.1 9.4 8.0 2.3 1.8 27.2 25.0 0.7 0.6

Tata Sponge Buy 271 420 417 757 875 19.0 19.1 63.5 72.9 4.3 3.7 0.6 0.6 16.1 16.1 0.1 -

TVS Srichakra Buy 340 462 260 1,612 1,827 9.5 9.8 72.3 92.5 4.7 3.7 1.4 1.0 33.1 32.1 0.4 0.4

Vesuvius India Neutral 383 - 777 621 711 15.3 15.5 27.3 32.4 14.0 11.8 2.3 1.9 17.2 17.6 1.1 0.9

Abbott India Accumulate 1,475 1,628 3,134 1,661 1,918 9.7 12.0 60.7 90.4 24.3 16.3 5.0 4.0 22.0 27.3 1.7 1.4

Cera Sanitaryware Ltd Accumulate 251 288 318 385 444 17.2 17.4 28.9 32.0 8.7 7.9 1.8 1.5 23.4 21.1 1.0 0.9

Jyothy Laboratories Buy 213 248 1,718 1,359 1,627 10.3 12.9 13.9 20.6 15.3 10.3 5.0 3.7 35.8 41.3 1.7 1.3

Force Motors Buy 461 680 600 2,346 2,753 6.7 7.0 50.9 61.9 9.1 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 25, 2012


May 28, 2012

Market Outlook

Stock Watch


19/19

May 28, 2012Market Outlook

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