budget 2012-13 angel
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March 16, 2012 2
Union Budget 2012-13 Review
Please refer to important disclosures at the end of this report
Union Budget 2012-2013
A Pragmatic Budget
The markets had broadly come to terms with the fact that the
government is shackled by political and fiscal considerations
and is not in a position to deliver major reformist budgets.
In the backdrop of these modest expectations, Union Budget
2012-13 comes across as a job reasonably done. Somewhere,
if after the UP elections there was some degree of concern that
populism may hold sway, this budget at least dismisses those
concerns by increasing tax revenue significantly and not
indulging into any major populist expenditure increases. Overall,
having taken the budget in its stride, from here on the market is
likely to look at the progression of the monetary policy, inflation
and interest rates the decline in which is, in our view, an
ongoing positive for the GDP outlook and corporate earnings
for FY2013.
Looking at FY2012 revised estimates: Fiscal deficit
slipped to 5.9%
The government expects to end FY2012 with a fiscal deficit of
5.9%, much higher than 4.6% estimated earlier, largely due to
higher subsidies, lower divestments and lower corporate taxcollections. Revised estimates for subsidy expenses highlight the
significant overshooting by around `73,000cr on account of
the earlier over-optimistic estimate, higher crude prices and
rupee depreciation. Lower corporate earnings growth due to
high inflation and interest rates led to expected corporate tax
revenue falling short by around `32,000cr. Further, weaker
sentiments in equity markets affected the government's
divestment plan, and revenue shortfall on that front stands at
around `24,500cr. Overall, government revenue mobilization
(both revenue and non-debt capital receipts) fell short by around
`48,000cr than the budgeted estimates.
Further, due to significant overshooting of the subsidy bill, total
expenditure exceeded budgeted estimates by around`61,000cr,
which had to be met by higher market borrowings of
`1,50,000cr, though aided in a large part by the RBI's
`1,20,000cr open market operations.
Exhibit 1: Lower-than-budgeted receipts in FY2012
PPPPParticulars (articulars (articulars (articulars (articulars (````` cr)cr)cr)cr)cr) FY2012BEFY2012BEFY2012BEFY2012BEFY2012BE FY2012REFY2012REFY2012REFY2012REFY2012RE VVVVVariancearianceariancearianceariance
Center's net tax rev.
(due to lower corp. taxes) 664,457 642,252 (22,205)
Total non tax revenue 125,435 124,737 (698)
Total non debt cap. receipts
(due to lower divestments) 55,020 29,751 (25,269)
Total receipts other than
debt receipts 844,912 796,740 (48,172)
Debt receiptsDebt receiptsDebt receiptsDebt receiptsDebt receipts 392,816392,816392,816392,816392,816 546,644546,644546,644546,644546,644 153,828153,828153,828153,828153,828
Cash balance 20,000 (24,664) (44,664)
TTTTTotal receipts incl. debt receiptsotal receipts incl. debt receiptsotal receipts incl. debt receiptsotal receipts incl. debt receiptsotal receipts incl. debt receipts 1,257,7291,257,7291,257,7291,257,7291,257,729 1,318,7201,318,7201,318,7201,318,7201,318,720 60,99160,99160,99160,99160,991
Exhibit 2: coupled with higher-than-budgeted expenditure in FY2012
Source: Budget documents, Angel Research
PPPPParticulars (articulars (articulars (articulars (articulars (`````
cr)cr)cr)cr)cr) FY2012 BEFY2012 BEFY2012 BEFY2012 BEFY2012 BE FY2012 REFY2012 REFY2012 REFY2012 REFY2012 RE variancevariancevariancevariancevarianceInterest 267,986 275,618 7,632
Defense 95,216 104,793 9,577
Subsidies 143,570 216,297 72,727
Total revenue non-plan exp. 733,558 815,740 82,182
Total capital non-plan exp. 82,624 76,376 (6,248)
TTTTTotal non-plan exp.otal non-plan exp.otal non-plan exp.otal non-plan exp.otal non-plan exp. 816,182816,182816,182816,182816,182 892,116892,116892,116892,116892,116 75,93475,93475,93475,93475,934
Central plan exp. 268,287 252,597 (15,690)
Total revenue plan exp. 363,604 346,201 (17,403)
Total capital plan exp. 77,943 80,404 2,461
TTTTTotal Plan exp.otal Plan exp.otal Plan exp.otal Plan exp.otal Plan exp. 441,547441,547441,547441,547441,547 426,604426,604426,604426,604426,604 (14,943)(14,943)(14,943)(14,943)(14,943)
TTTTTotal expenditureotal expenditureotal expenditureotal expenditureotal expenditure 1,257,7291,257,7291,257,7291,257,7291,257,729 1,318,7201,318,7201,318,7201,318,7201,318,720 60,99160,99160,99160,99160,991
FY2013 targets fiscal deficit reduction to 5.1%;Tax revenue credibly supported
The government plans to correct the worsening fiscal situation
in FY2013 by implementing several revenue augmentation
measures, mainly in tax revenue, and expects to end the year
with fiscal deficit at 5.1%. Tax revenue is expected to increase
substantially by around `1,29,000cr over the revised estimates
for FY2012, mainly aided by a widely anticipated 200bpincrease in excise rates and service tax rates and widening of
service tax with the introduction of negative list approach.
Nominal GDP growth of ~13% is expected to aid higher
corporate tax revenue by a largely similar quantum on the direct
tax front. The resulting estimated increase in overall tax revenue
by 50bp of GDP is the key contributor to the targeted reduction
in fiscal deficit. Further, the government expects to increase other
non-tax revenue and non-debt capital receipts by around
`52,000cr mainly on account of `40,000cr from telecom
spectrum auction and `30,000cr from divestment - again not
over-ambitious targets.
Source: Budget documents, Angel Research
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Union Budget 2012-13 Review
Please refer to important disclosures at the end of this report
Exhibit 3:Analysis of budgeted tax revenue receipts in FY2013 over FY2012
Source: Budget documents, Angel Research
PPPPParticulars (articulars (articulars (articulars (articulars (````` cr)cr)cr)cr)cr) FY2012REFY2012REFY2012REFY2012REFY2012RE FY2013BEFY2013BEFY2013BEFY2013BEFY2013BE VVVVVariancearianceariancearianceariance
Total income tax 327,680 373,227 45,547
Taxes on income 171,879 195,786 23,907
Customs 153,000 186,694 33,694
Union excise duties 150,696 194,350 43,654
Service tax 95,000 124,000 29,000
Taxes on Union Territories 3,409 3,554 145
Less NCCD transfer 3,998 4,620 622
Less State's share 255,414 301,921 46,507
Center's net tax revenueCenter's net tax revenueCenter's net tax revenueCenter's net tax revenueCenter's net tax revenue 642,252642,252642,252642,252642,252 771,071771,071771,071771,071771,071 128,819128,819128,819128,819128,819
(as % to GDP)(as % to GDP)(as % to GDP)(as % to GDP)(as % to GDP)
Total income tax 3.7 3.7 0.0
Taxes on income 1.9 1.9 0.0
Customs 1.7 1.9 0.1
Union excise duties 1.7 1.9 0.2
Service tax 1.1 1.2 0.2
Taxes on Union Territories 0.0 0.0 (0.0)
Less NCCD transfer 0.0 0.0 0.0
Less State's share 2.9 3.0 0.1
Center's net tax revenueCenter's net tax revenueCenter's net tax revenueCenter's net tax revenueCenter's net tax revenue 7.27.27.27.27.2 7.77.77.77.77.7 0.50.50.50.50.5
Exhibit 4: Analysis of non -tax and non-debt cap. receipts in FY13 vs. FY12
PPPPParticulars (articulars (articulars (articulars (articulars (````` cr)cr)cr)cr)cr) FY2012REFY2012REFY2012REFY2012REFY2012RE FY2013BEFY2013BEFY2013BEFY2013BEFY2013BE VVVVVariancearianceariancearianceariance
Interest receipts 20,125 19,231 (894)
Dividend and profits 50,122 50,153 31
External grants 3,477 2,887 (590)
Other non-tax revenue
Mainly spectrum auction 49,909 91,207 41,298
Receipts of Union Territories 1,105 1,136 31
TTTTTotal non-tax revenueotal non-tax revenueotal non-tax revenueotal non-tax revenueotal non-tax revenue 124,737124,737124,737124,737124,737 164,614164,614164,614164,614164,614 39,87739,87739,87739,87739,877
Recoveries of loans and adv. 14,258 11,650 (2,608)
Divestment receipts 15,493 30,000 14,507
TTTTTotal non-otal non-otal non-otal non-otal non-debt capital receiptsdebt capital receiptsdebt capital receiptsdebt capital receiptsdebt capital receipts 29,75129,75129,75129,75129,751 41,65041,65041,65041,65041,650 11,89911,89911,89911,89911,899
Source: Budget documents, Angel Research
Exhibit 5: Analysis of debt receipts in FY2013 over FY2012
PPPPParticulars (articulars (articulars (articulars (articulars (````` cr)cr)cr)cr)cr) FY2012REFY2012REFY2012REFY2012REFY2012RE FY2013BEFY2013BEFY2013BEFY2013BEFY2013BE VVVVVariancearianceariancearianceariance
Total receipts otherotal receipts otherotal receipts otherotal receipts otherotal receipts other
than debt receiptsthan debt receiptsthan debt receiptsthan debt receiptsthan debt receipts 796,740796,740796,740796,740796,740 977,335977,335977,335977,335977,335 180,595180,595180,595180,595180,595
TTTTTotal expenditureotal expenditureotal expenditureotal expenditureotal expenditure 1,318,7201,318,7201,318,7201,318,7201,318,720 1,490,9251,490,9251,490,9251,490,9251,490,925 172,205172,205172,205172,205172,205
TTTTTotal fiscal deficitotal fiscal deficitotal fiscal deficitotal fiscal deficitotal fiscal deficit 521,980521,980521,980521,980521,980 513,590513,590513,590513,590513,590 (8,390)(8,390)(8,390)(8,390)(8,390)
(as % of GDP) 5.9 5.1 0.8
Market loans 436,414 479,000 42,586
Short-term borrowings 116,084 9,000 (107,084)
Other receipts (5,853) 25,591 31,444
Cash balanceCash balanceCash balanceCash balanceCash balance (24,664)(24,664)(24,664)(24,664)(24,664) ----- 24,66424,66424,66424,66424,664
Source: Budget documents, Angel Research
On the expenditure side, the increase in total non-plan
expenditure has been capped at 8.7% over FY2012 revised
estimates and is mainly on account of the essential increase in
interest, defense, police, pension and other general services
expenses and largely exhibits substantial restraint. On the plan
expenditure side, the budget builds in a 22.1% increase from
the revised estimates of FY2012 on account of the increase in
central and state planned spending. This is relatively on the
higher side and, in our view, leaves relatively little margin of
error for the government on the non-plan front if the overall
fiscal deficit and market borrowing targets are to be met.
Exhibit 6:Analysis of budgeted expenditure in FY2013 over FY2012
PPPPParticulars (articulars (articulars (articulars (articulars (````` cr)cr)cr)cr)cr) FY2012REFY2012REFY2012REFY2012REFY2012RE FY2013BEFY2013BEFY2013BEFY2013BEFY2013BE VVVVVariancearianceariancearianceariance
Interest 275,618 319,759 44,141
Defense 104,793 113,829 9,036
Subsidies 216,297 190,015 (26,282)
Total revenue non-plan exp. 815,740 865,596 49,856
Total capital non-plan exp. 76,376 104,304 27,928
TTTTTotal non-plan exp.otal non-plan exp.otal non-plan exp.otal non-plan exp.otal non-plan exp. 892,116892,116892,116892,116892,116 969,900969,900969,900969,900969,900 77,78477,78477,78477,78477,784
Central plan exp. 252,597 303,528 50,931
Total revenue plan exp. 346,201 420,513 74,312
Total capital plan exp. 80,404 100,512 20,108
TTTTTotal Plan exp.otal Plan exp.otal Plan exp.otal Plan exp.otal Plan exp. 426,604426,604426,604426,604426,604 521,025521,025521,025521,025521,025 94,42194,42194,42194,42194,421
TTTTTotal expenditureotal expenditureotal expenditureotal expenditureotal expenditure 1,318,7201,318,7201,318,7201,318,7201,318,720 1,490,9251,490,9251,490,9251,490,9251,490,925 172,205172,205172,205172,205172,205
Source: Budget documents, Angel Research
The major item of non-plan expenditure, which is projected at
much lower levels than in FY2012, is subsidy outgo. In FY2012,
when average crude prices were about US$113 and Mumbai
petrol and diesel prices averaged about `69 and `45,
respectively, fuel subsidy amounted to`68,481cr. Crude prices
are currently at US$124 and petrol and diesel prices are almost
at the same levels as in FY2012, so either crude prices need to
come down significantly to even below FY2011 average levels
(difficult considering the current concerns in the Middle East) or
the government would have to hike petrol and diesel prices.
Absence of action on that front would pose a major risk to
budget estimates.
Union Budget 2012-2013
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March 16, 2012 4
Union Budget 2012-13 Review
Please refer to important disclosures at the end of this report
subvention of 3% for prompt payments. Other measures include
operationalization of Irrigation and Water Resource Finance
Corporation, increasing food grain storage capacity, full
exemption of basic custom duty on equipment for setting up
fertilizer plants till March 31, 2015, and higher allocation to
various programmes such as Accelerated Irrigation Benefit
Programme (AIBP) (`14,242cr in FY2013 from around
`10,950cr in FY2012), Rashtriya Krishi Vikas Yojana (RKVY)
(`9,217cr in FY2013 from `7,860cr in FY2012) and Bringing
Green Revolution to Eastern India (BGREI) (`1,000cr in FY2013
from 400cr in FY2012). These measures will also aid the lagging
agriculture GDP growth apart from keeping food inflation undercheck.
Infrastructure Got the desired focus
In FY2012, the infrastructure sector was plagued by several
headwinds - such as depleting order books, high interest rates
and policy paralysis - resulting in execution slowdown and
shrinking bottom line of most infrastructure companies. Positively,
infrastructure development remained high on the agenda of
the budget. The budget has introduced several measures such
as lowering the rate of withholding tax on interest payments on
three-year ECBs for funding infrastructure projects and
encouraging public private partnerships in road construction
projects by allowing ECBs for capital expenditure on the
maintenance and operations of toll systems for roads and
highways. It has added capital investment in irrigation, fertilizers,
telecom towers and oil and gas to the list of eligible items for
viability gap funding. In terms of infrastructure ordering, it targets
to award 8,800km of road projects in FY2013 by NHAI vs.
7,300km in FY2012 and has increased allocation to National
Highway Development Programme (NHDP) and Accelerated
Irrigation Benefit Programme (AIBP) in FY2013 by 14% and13%, respectively.
Power - Process of addressing concerns continued
The power sector is another sector that has received extended
attention (quite needed) from the budget this time around. There
were various favorable announcements in the budget for the
sector, which has been grappling with fuel shortage, elevated
price of imported coal and poor financial situation of SEBs.
Major announcements included waiving off basic custom duty
on coal imports until FY2014 and extension of 80-IA benefits
until FY2013. Waiving off basic custom duty on coal is expected
to partially address the fuel availability issue and would be more
beneficial for companies relying on imported coal for running
Exhibit 7: Subsidy estimates appear optimistic
PPPPParticulars (articulars (articulars (articulars (articulars (````` cr)cr)cr)cr)cr) FY2012BEFY2012BEFY2012BEFY2012BEFY2012BE FY2012REFY2012REFY2012REFY2012REFY2012RE VVVVVariancearianceariancearianceariance
Fertilizer subsidy 67,199 60,974 (6,225)
Food subsidy 72,823 75,000 2,177
Petroleum subsidy 68,481 43,580 (24,901)
Interest subsidy 5,791 7,968 2,176
Other subsidies 2,002 2,493 491
TTTTTotal subsidiesotal subsidiesotal subsidiesotal subsidiesotal subsidies 216,297216,297216,297216,297216,297 190,015190,015190,015190,015190,015 (26,282)(26,282)(26,282)(26,282)(26,282)
Source: Budget documents, Angel Research
Exhibit 8: Significant catch-up left on domestic petrol/diesel prices
FYFYFYFYFY PPPPPetrol/Ltretrol/Ltretrol/Ltretrol/Ltretrol/Ltr..... Diesel/LtrDiesel/LtrDiesel/LtrDiesel/LtrDiesel/Ltr..... Crude BrentCrude BrentCrude BrentCrude BrentCrude Brent SubsidySubsidySubsidySubsidySubsidy
(((((`````))))) (((((`````))))) (US $)(US $)(US $)(US $)(US $) (((((````` cr)cr)cr)cr)cr)
2011 57 42 87 38,371
2012 69 45 113 68,481
2013# 71 45 124 43,580
Source: Bloomberg, Angel Research. Note: FY2013# Petrol, Diesel, Crude
prices reflect current prices
Channelizing different sources of funds to aid coolingof interest rates
Continuing the trend seen in the past few years of increasing
the availability of funds to the economy, especially to the
infrastructure and priority sectors, in this budget as well key
announcements were made on that front. These include doubling
the fresh issue amount of tax-free bonds to `60,000cr and
reduction in withholding tax rate for three-year ECBs taken to
fund infrastructure projects. The budget also continues to address
medium-term capital constraints for PSU banks (`15,888cr
capital infusion budgeted this year). It also seeks to allow QFIs
to access corporate bond markets and has introduced special
Rajiv Gandhi Equity Saving Scheme to provide tax sops for
individuals having income less than `10lakhs making fresh
investment directly in equities up to`
50,000. The increase incustoms duty on gold also aims to nudge higher savings into
productive financial assets and aid in reducing the current
account deficit.
Continuation of steps to remove agri supply constraints
The government has continued its focus on removing supply
bottlenecks in agriculture, both in production as well as in supply
chain. Even though food inflation has currently declined, the
government has not shown complacency and has in fact taken
several appropriate measures to address structural supply
constraints. On expected lines, agricultural credit target has beenraised by`1,00,000cr to `5,75,000cr in FY2013 and interest
subvention scheme has been continued along with additional
Union Budget 2012-2013
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Please refer to important disclosures at the end of this report
Exhibit 9: Sectoral Impact
Source: Angel Research
SectorSectorSectorSectorSector Overall impactOverall impactOverall impactOverall impactOverall impact
Agriculture Positive
Automobile Negative
Aviation Neutral
Banking Positive
Capital Goods Positive
Cement Positive
FMCG Negative
Infrastructure Positive
IT NeutralMetals Neutral
Oil & Gas Negative
Pharmaceutical Positive
Power Positive
Real Estate Neutral
Telecom Neutral
their plants. Other positive announcements for the power sector
(mostly on the financing side) include tax-free bonds of
`10,000cr for financing the power sector, allowing ECBs for
part financing rupee debts of the existing power projects and
reduction of withholding tax on interest payments on ECBs from
20% to 5%. These measures come on the back of the recent
PMO missive to Coal India to sign FSAs up to 80% of the fuel
requirement of power companies - highlighting the government's
commitment to undo some of the negatives for the sector.
Conclusion
Overall, Union Budget 2012-13 looks more credible in itsestimates than last year's budget. First, the increase in excise
and service tax rates as well as the increase in the ambit of
service tax was on expected lines and makes the budget's revenue
estimates more believable. On the subsidy front, some degree
of under-estimation is nothing new - overall, there may be some
slippage in the deficit because of this, but provided the
government delivers on its intent to increase retail oil prices, the
fiscal deficit is still likely to be 40-50bp lower than that in FY2012,
which is a key positive for the economy. It will allow the RBI to
reduce rates faster and will be positive for GDP growth and
especially for interest- sensitive sectors such as banking,
infrastructure and real estate. Oil and gas was amongst the key
sectors that were negatively impacted (increase of cess on crude
oil for Cairn and ONGC).
Overall, within its set of constraints, in our view this will go
down as a reasonable, pragmatic budget, which is unlikely to
have a major impact on markets in either direction. Going
forward, markets will start looking beyond the budget, wherein
the global environment has changed materially for the better in
the last couple of months. With the ECB's pragmatic and
comprehensive LTRO liquidity infusions of about Euro1trillion,
the Euro crisis looks more or less behind us. Moreover, lower
global growth has led to lower commodity prices (other than
crude, which is likely to be range-bound), improving the outlook
for emerging markets such as India. As a result, we are seeing
healthy investment inflows and with the inflation and interest
rate outlook becoming relatively benign, we remain positive on
the outlook for the markets going ahead.
Union Budget 2012-2013
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Please refer to important disclosures at the end of this report
Sectoral Impact
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Please refer to important disclosures at the end of this report
Aviation companies have been allowed to raise money
(up to US$1bn) through ECBs for their working capital
requirements for a period of one year.
Proposal to allow FDI of up to 49% by foreign airlines is
still being considered by the government.
The government has reiterated direct import of Aviation
Turbine Fuel (ATF) for Indian carriers.
Companies, such as SpiceJet, with relatively healthy
balance sheets and good repayment history may be
benefitted from this.
This has come as a disappointment for companies under
severe financial stress, as they were relying on FDI to raise
capital for running their operations.
This move is positive for aviation companies, as it would
reduce ATF cost, which accounts for 50% of the total
operating cost of a company. However, this development
has a low probability of benefiting aviation companies in
the short term, as we believe companies do not have the
required infrastructure or capital to build the infrastructurerequired to import ATF directly.
Announcement Impact
Aviation Neutral
Automobile Negative
Basic excise duty raised from 10% to 12%. Excise duty on
large cars increased to 24% from 22%.
Excise duty on specified parts of hybrid vehicles is being
reduced from 10% to 6%.
General budgetary measures: Higher subvention
for farmers and higher allocation to rural credit at
`5.75lakh cr (`4.60lakh cr earlier).
Slightly negative for all OEMs, but is on expected lines.
We expect the entire hike to be passed on to customers,
without any material impact on volume growth outlook.
This would promote the manufacture, sale and usage of
such vehicles in India.
This increase in allocation under Rural Development
Program is positive for auto companies having a rural
presence, such as M&M and Hero Honda.
Announcement Impact
CompanyCompanyCompanyCompanyCompany RecoRecoRecoRecoReco CMPCMPCMPCMPCMP TTTTTarget Parget Parget Parget Parget Pricericericericerice EPS (EPS (EPS (EPS (EPS (`````))))) P/E (x)P/E (x)P/E (x)P/E (x)P/E (x) EV/EBITDEV/EBITDEV/EBITDEV/EBITDEV/EBITDA (x)A (x)A (x)A (x)A (x)
(((((`````))))) (((((`````))))) FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E
Ashok Leyland Buy 28 32 2.2 2.7 12.5 10.1 6.7 6.7
M & M Buy 677 785 42.6 47.2 15.9 14.3 9.1 9.1
Top Picks
Source: Company, Angel Research; Note: * Consolidated results; Note: Price as on March 16, 2012
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Please refer to important disclosures at the end of this report
Banking Positive
Capital infusion of `15,888cr in PSU banks, RRBs and
other financial institutions. The government is also
considering creation of a financial holding company,
which will raise resources to meet the capital requirements
of public sector banks.
Credit flow for farmers raised from `4,75,000cr to
`5,75,000cr.
Interest subvention to farmers retained and has been
introduced for women SHGs to avail loans up to`3lakhs
at 7%, with further interest subvention of 3% on prompt
payment.
Custom duty increased on standard gold imports.
Micro Finance Institutions (Development and Regulation)
Bill 2012, Pension Fund Regulatory and DevelopmentAuthority Bill 2011, Banking Laws (Amendment) Bill 2011
and Insurance Laws (Amendment) Bill 2008 to be moved
in this session of the parliament.
Enable PSUs to grow at a healthy rate and move
progressively towards meeting the more stringent tier-I
CAR requirements of Basel-III.
Slightly negative, considering the lower yields and higher
NPAs generally associated with agri-based lending.
Could assist in reducing rural NPAs for banks.
Positive for banks as it would help channelize higher
savings into financial investments, aiding the downward
trajectory of interest rates.
Positive for the financial sector, especially the micro finance
institutions sector, which has been in turmoil ever sincethe Andhra Pradesh government set stringent norms on
lending and interest collection within the state.
Announcement Impact
In our view, the budget was broadly positive for the banking sector. Healthy capital allocation of ~`16,000cr for the recapitalization
of PSU banks is expected to strengthen credit growth, while specific measures such as the increase in custom duty on gold imports
is likely to channelize higher savings into financial investments, including bank deposits. Introduction of Microfinance Institutions
Bill, which will supersede state government laws, will provide a big boost to the struggling micro finance industry.
From the fiscal deficit point of view, the government refrained from having any populist measures, which will come as a sigh of relieffor the banking sector. Commencement of easing monetary policy, apart from moderation in inflation, is also hinged on signs of
credible fiscal consolidation, which we feel was by and large delivered in Union Budget 2012-13.
CompanyCompanyCompanyCompanyCompany RecoRecoRecoRecoReco CMPCMPCMPCMPCMP TTTTTarget Parget Parget Parget Parget Pricericericericerice EPS (EPS (EPS (EPS (EPS (`````))))) P/E (x)P/E (x)P/E (x)P/E (x)P/E (x) P/ABP/ABP/ABP/ABP/ABV (x)V (x)V (x)V (x)V (x)
(((((`````))))) (((((`````))))) FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E
Axis Bank Buy 1,214 1,671 101.7 115.4 11.9 10.5 2.2 2.0
ICICI Bank Buy 917 1,193 54.6 63.9 16.8 14.4 1.8 1.7
Yes Bank Buy 367 478 28.1 33.2 13.1 11.1 2.7 2.3
St. Bank of India Buy 2,228 2,587 172.8 202.8 12.9 11.0 2.1 1.7Bank of Baroda Buy 809 951 117.6 126.0 6.9 6.4 1.3 1.1
Top Picks
Source: Company, Angel Research; Note: Price as on March 16, 2012
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Please refer to important disclosures at the end of this report
Low cost of funds and fuel for the power sector will lend a
fillip to execute power projects, thus implying improved
order inflow for capital goods companies.
Would help in attracting private investment in PPP projects.
Steps to ease funding constraints in new project
investments would help revive the asset creation cycle
through order inflows, thus benefiting the sector.
Negative for companies making power generation
equipment, such as BHEL and BGR Energy.
Announcement Impact
Power sector to issue tax-free bonds worth`10,000cr for
financing projects; ECBs to part finance rupee debt of
power projects; And customs duty on imported coal to be
waived off.
Capital investment in sectors such as fertilizers, telecom
towers and oil and gas has been made eligible for viability
gap funding.
No announcement was made on the widely anticipated
imposition of import duty on power generation equipment,
which would have reduced the price differential between
domestic and overseas players (especially Chinese
players).
Capital Goods Positive
CompanyCompanyCompanyCompanyCompany RecoRecoRecoRecoReco CMPCMPCMPCMPCMP TTTTTarget Parget Parget Parget Parget Pricericericericerice EPS (EPS (EPS (EPS (EPS (`````))))) P/E (x)P/E (x)P/E (x)P/E (x)P/E (x) EV/EBITDEV/EBITDEV/EBITDEV/EBITDEV/EBITDA (x)A (x)A (x)A (x)A (x)
(((((`````))))) (((((`````))))) FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013EJyoti Structures Buy 45 54 11.9 10.9 3.8 4.2 3.6 3.0
Top Picks
Source: Company, Angel Research; Note: Price as on March 16, 2012
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Please refer to important disclosures at the end of this report
The graded excise duty structure based on retail selling
price slabs, which were applicable to cement
manufactured and cleared in packaged form, has been
removed for mini cement plants as well as for non-mini
cement plants. As per the announced duty structure, excise
duty on cement cleared from mini cement plants in
packaged form will be 6% along with additional charge
of `120/tonne; while duty on cement cleared from other
than mini cement plant will be 12% along with additional
charge of `120/tonne. The duty will be charged on the
retail selling price with an abatement of 30%.
Basic custom duty on imported coal has been waived off
until FY2014.
We expect cement manufacturers to pass on the hike in
excise duty to consumers by increasing cement prices.
India's cement sector is highly dependent on imported
coal. Prices of domestic as well as imported coal have
increased considerably over the past one year. Thus, the
waiver of basic custom duty on imported coal is positive
for the sector.
Announcement Impact
Cement Positive
CompanyCompanyCompanyCompanyCompany RecoRecoRecoRecoReco CMPCMPCMPCMPCMP TTTTTarget Parget Parget Parget Parget Pricericericericerice P/E (x)P/E (x)P/E (x)P/E (x)P/E (x) EV/EBITDEV/EBITDEV/EBITDEV/EBITDEV/EBITDA (x)A (x)A (x)A (x)A (x) EV/tonne (EV/tonne (EV/tonne (EV/tonne (EV/tonne ($$$$$)))))
(((((`````))))) (((((`````))))) FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013EJK Lakshmi Cem. Buy 63 79 5.5 4.6 3.8 2.6 34 28
Top Picks
Source: Company, Angel Research; Note: Price as on March 16, 2012
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Please refer to important disclosures at the end of this report
Hike in excise duty on cigarettes (more than 65mm in
length) by adding an ad valorem component of 10% to
existing specific rates. The ad valorem duty would be 50%
of the retail sale price declared on the pack.
Allocation to NREGA at `33,000cr, down from`40,000cr
in Union Budget 2011-12.
Reduction in basic customs duty on titanium dioxide from
10% to 7.5%.
We had also anticipated some hike in the excise duty
on cigarettes, as it was not changed in Union
Budget 2011-12. We expect manufacturers to pass
on this hike to consumers. Thus, we expect the impact to
be Neutral for ITC, VST Industries, Godfrey Phillips.
Reduction in the allocation to NREGA is negative for
the FMCG sector, as it could reduce the disposable
income in the hands of rural households. Negative
for all FMCG players.
Reduction in basic customs duty on titanium dioxide, a
raw material used to manufactured paint, is positive for
paint makers such as Asian Paints, Kansai Nerolac, Berger
Paints and Akzo India.
Announcement Impact
FMCG Negative
Further, there has not been any concrete announcement regarding the rollout of GST, which is a disappointment for the
FMCG sector.
Telecom Neutral
The budget indicated that the government expects to raise
`40,000cr through 2G spectrum auction.
Exemption of basic customs duty on accessories of mobile
handsets has now been extended to parts, components
and sub-parts of parts and components required for
manufacturing memory cards for mobile phones.
Increased focus on social schemes such as NREGA
This is slightly higher than what was expected and is likely
to put financial burden on all telecom companies, who
are already in a dire need of funding post the 3G and
BWA auctions. However, most of this impact has already
been priced in the stock prices.
This is marginally positive for the sector as mobile handset
growth will likely get a thrust, which, in turn, will help real
subscriber growth.
This will indirectly assist telecom companies, as the
increase in rural disposable income could result in more
demand for mobile services.
Announcement Impact
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Union Budget 2012-13 Review
Please refer to important disclosures at the end of this report
Announcement Impact
Infrastructure Positive
Issuance of tax-free bonds for financing infrastructure
projects has been doubled to `60,000cr in FY2012-13
from `30,000cr in FY2011-12. NHAI, IRFC, IIFCL and
the power sector will issue bonds worth `10,000cr each,
whereas HUDCO, National Housing Bank, SIDBI and the
ports sector would issue bonds worth `5,000cr.
Target to award 8,800km of road projects in FY2012-13
set for NHAI (against target of 7,300km in FY2011-12).
Further, allocation to National Highway Development
Programme (NHDP) increased by 14% yoy to`25,360cr.
To encourage public private partnerships in road
construction projects, Union Budget has proposed to allow
ECB for capital expenditure on the maintenance and
operations of toll systems for roads and highways, given
they are part of the original project.
Rate of withholding tax on interest payments on external
commercial borrowings is proposed to be reduced from
20% to 5% for three years for infrastructure sectors likepower, road and bridges, housing and ports.
Allocation for Accelerated Irrigation Benefit Programme
(AIBP) in FY2012-13 is being stepped up by 13% to
`14,242cr.
Various infrastructure sectors such as irrigation and oil
and gas have been made eligible for viability gap funding.
Positive for all E&C players as it would boost infrastructure
development in railway, ports, housing and highways by
facilitating fund raising for various government bodies
that award infrastructure projects.
Positive for all road developers (IRB, ITNL and Ashoka
Buildcon) as increased target of project awarding and
higher allocation would provide more opportunities on
the order inflow front for road players.
Positive for all road developers (IRB, ITNL and Ashoka
Buildcon).
Would help reduce the borrowing cost of funds and,
hence, would help fuel infrastructure projects with
low-cost funds.
Positive for E&C companies such as IVRCL, NCC,
Madhucon Projects and Patel Engineering, as it would
create more opportunities in the irrigation segment.
Would help in attracting private investment in PPP projects.
Positive for all E&C players present in the irrigation space.
To ease access of credit to infrastructure projects, India Infrastructure Finance Company Limited (IIFCL) has put in place a structure
for credit enhancement and takeout finance. A consortium for direct lending and grant of in-principle approval to developers before
the submission of bids for PPP projects has also been created.
CompanyCompanyCompanyCompanyCompany RecoRecoRecoRecoReco CMPCMPCMPCMPCMP TTTTTarget Parget Parget Parget Parget Pricericericericerice EPS (EPS (EPS (EPS (EPS (`````))))) P/E (x)P/E (x)P/E (x)P/E (x)P/E (x) EV/EBITDEV/EBITDEV/EBITDEV/EBITDEV/EBITDA (x)A (x)A (x)A (x)A (x)
(((((`````))))) (((((`````))))) FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013EL&T Buy 1,320 1,607 63.5 70.7 20.8 18.7 13.7 12.4
Top Picks
Source: Company, Angel Research; Note: Price as on March 16, 2012
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Please refer to important disclosures at the end of this report
Real Estate Neutral
Allowed to raise money through ECBs and reduce
withholding tax on interest payments on ECBs from 20%
to 5% for three years for affordable housing.
Extension of 1% interest subvention on housing loans on
loan amount up to`15lakhs, where the cost of the house
does not exceed`25lakhs.
This should benefit developers who plan to raise money
through ECBs for the construction of affordable houses,
as it would lower the borrowing cost.
This would continue to benefit developers having
low-cost affordable housing projects.
Announcement Impact
Measures announced in this budget were more in favor of boosting affordable housing projects in Tier II and III cities by extending
interest subvention and allowing to raise money through ECBs. Since most of the listed companies do not have any exposure to the
affordable housing segment, the budget is Neutral for the real estate sector.
CompanyCompanyCompanyCompanyCompany RecoRecoRecoRecoReco CMPCMPCMPCMPCMP TTTTTarget Parget Parget Parget Parget Pricericericericerice EPS (EPS (EPS (EPS (EPS (`````))))) P/E (x)P/E (x)P/E (x)P/E (x)P/E (x) EV/EBITDEV/EBITDEV/EBITDEV/EBITDEV/EBITDA (x)A (x)A (x)A (x)A (x)(((((`````))))) (((((`````))))) FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E
Anant Raj Buy 59 78 5.4 8.4 11.0 7.0 11.4 8.3
Top Picks
Source: Company, Angel Research; Note: Price as on March 16, 2012
Plan allocation for general education has been increased
by 17.6% to `49,240cr for FY2012-13 from `41,860cr
for FY2011-12.
Under Sarva Shiksha Abhiyan, `25,555cr has been
allocated, which is 21.7% higher than that allocated in
FY2011-12.
Various IT initiatives have been extended for the efficient
administration of various government departments.
UID Aadhar to get adequate funds for enrolment of
40cr people, in addition to the 20cr people already
enrolled.
Higher allocation to the education sector would boost
business opportunities for education companies.
This would provide growth opportunities in terms of ICT
and PPP in the K-12 and vocational segments to players
focusing on formal and vocational education, such as
Educomp, Everonn, Core Projects and NIIT Ltd.
Creation of strong opportunities for Indian software
companies in the e-Governance space in the domestic
market going forward.
Announcement Impact
IT Neutral
CompanyCompanyCompanyCompanyCompany RecoRecoRecoRecoReco CMPCMPCMPCMPCMP TTTTTarget Parget Parget Parget Parget Pricericericericerice EPS (EPS (EPS (EPS (EPS (`````))))) P/E (x)P/E (x)P/E (x)P/E (x)P/E (x) EV/EBITDEV/EBITDEV/EBITDEV/EBITDEV/EBITDA (x)A (x)A (x)A (x)A (x)
(((((`````))))) (((((`````))))) FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E
MindTree Buy 451 519 51.7 50.2 8.7 9.0 5.1 4.1
Mahindra Satyam Buy 70 87 8.5 8.0 8.2 8.6 6.0 4.6
Top Picks
Source: Company, Angel Research; Note: Price as on March 16, 2012
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Please refer to important disclosures at the end of this report
Union Budget 2012-13 was a mixed bag for the metals and mining sector. While the increase in excise duty would be marginally
negative for metal producers, exemption from import duty on coal would be slightly positive for thermal coal importers, including
non-ferrous metal producers, JSW Steel and some sponge iron producers. Moreover, the increase in customs duty on non-alloy
flat-rolled steel from 5.0% to 7.5% would be slightly positive for flat steel producers.
Metals Neutral
Increase in excise duty from the current level of
10% to 12%.
Full exemption from import duty on thermal coal (5%
currently) up to FY2014 and decrease in countervailing
duty from 5% to 1%.
Decrease in basic customs duty on machinery from 7.5%
currently to 2.5% for setting up iron ore beneficiation and
pellet plants.
Increase in customs duty on non-alloy flat-rolled steel from
5.0% to 7.5%.
Decrease in import duty on machinery used for
prospecting in mining from 10.0/7.5% to 2.5%; Abolition
of customs duty for coal mining projects.
This would be slightly negative for steel, sponge,
non-ferrous metal producers.
This would be positive for coal importers, such as Nalco,
Hindalco, Sterlite Industries and JSW Steel.
This would be slightly positive for steel makers setting up
pellet and beneficiation plants.
This would be slightly positive for flat steel producers,
such as Bhushan Steel, SAIL, JSW Steel and Tata Steel.
Positive for mining companies and steel companies
undertaking mining projects.
Announcement Impact
CompanyCompanyCompanyCompanyCompany RecoRecoRecoRecoReco CMPCMPCMPCMPCMP TTTTTarget Parget Parget Parget Parget Pricericericericerice EPS (EPS (EPS (EPS (EPS (`````))))) P/E (x)P/E (x)P/E (x)P/E (x)P/E (x) EV/EBITDEV/EBITDEV/EBITDEV/EBITDEV/EBITDA (x)A (x)A (x)A (x)A (x)
(((((`````))))) (((((`````))))) FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E
NMDC Buy 158 202 18.0 18.6 8.8 8.5 4.5 4.1
Tata Steel Buy 454 558 40.8 50.9 11.1 8.9 7.3 5.5Hind. Zinc Buy 130 149 13.0 15.2 10.0 8.5 6.3 4.6
Top Picks
Source: Company, Angel Research; Note: Price as on March 16, 2012
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Please refer to important disclosures at the end of this report
CompanyCompanyCompanyCompanyCompany RecoRecoRecoRecoReco CMPCMPCMPCMPCMP TTTTTarget Parget Parget Parget Parget Pricericericericerice EPS (EPS (EPS (EPS (EPS (`````))))) P/E (x)P/E (x)P/E (x)P/E (x)P/E (x) EV/EBITDEV/EBITDEV/EBITDEV/EBITDEV/EBITDA (x)A (x)A (x)A (x)A (x)
(((((`````))))) (((((`````))))) FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E
Reliance Industries Buy 773 923 64.2 64.7 12.0 11.9 6.7 6.8
ONGC Buy 273 316 30.2 30.2 9.1 9.0 3.9 3.6GAIL Buy 367 440 31.1 35.4 11.8 10.3 6.1 5.3
Top Picks
Increase in cess from the current level of`2,500/tonne to
`4,500/tonne.
`43,737cr of petroleum subsidies have been provided
for FY2013.
Customs duty on LNG import has been abolished from
the current level of 5%.
This would be negative for Indian crude oil producers
(mainly Cairn India and ONGC) as cess is deducted from
the realized crude price.
Would be insufficient if crude oil stays at current levels
(above US$115/bbl) or retail prices are not revised
upwards. Under recoveries are expected to amount to
~`130,000cr in FY2013. It could also mean higher
subsidy burden for upstream oil companies (ONGC and
Oil India).
This would be marginally positive for city gas distributors
such as Gujarat Gas.
Announcement Impact
Oil & Gas Negative
Source: Company, Angel Research; Note: Price as on March 16, 2012
Union Budget 2012-13 is negative for the oil and gas sector. The budget pegged the government's share of petroleum subsidy at
only`43,737cr for FY2013, which would be insufficient if Brent crude stays at current levels (above US$115/bbl) or diesel and LPG
cylinder prices are not revised upwards. The government's share of subsidy for FY2012 is expected to be`68,533cr, which is in-line
with our expectation of `65,000cr, although it is significantly above the government's target of `23,696cr.
The budget proposes to increase cess for oil producers from`2,500/tonne to `4,500/tonne, which will be negative for Cairn India
and ONGC.
In light of this event, we lower Cairn India's FY2013 EPS estimate by 10.7% to`46.3. Thus, our target price stands reduced to`332
(previous target price `367). We recommend Neutral on the stock.
For ONGC, we lower our FY2013 EPS estimate by 10.3% to`30.2 and lower our target price to `316 (previous target price`324).
However, we note that any increase in prices of diesel and LPG will lower its share of subsidy burden and as such it will be positive
for ONGC. We maintain our Buy view on the stock.
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Please refer to important disclosures at the end of this report
Pharmaceutical Positive
CompanyCompanyCompanyCompanyCompany RecoRecoRecoRecoReco CMPCMPCMPCMPCMP TTTTTarget Parget Parget Parget Parget Pricericericericerice EPS (EPS (EPS (EPS (EPS (`````))))) P/E (x)P/E (x)P/E (x)P/E (x)P/E (x) EV/EBITDEV/EBITDEV/EBITDEV/EBITDEV/EBITDA (x)A (x)A (x)A (x)A (x)
(((((`````))))) (((((`````))))) FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E
Lupin Buy 504 593 22.3 29.7 22.5 17.0 18.8 14.1
Cadila Healthcare Buy 712 866 33.5 43.3 20.1 15.6 16.4 13.3Aurobindo Pharma Buy 113 166 11.8 13.8 9.6 8.2 7.3 6.5
Top Picks
Proposal to extend weighted deduction of 200% for R&D
expenditure in an in-house facility for a further period of
five years beyond March 31, 2012.
Allocation for NRHM proposed to be increased from
`18,115cr in FY2011-12 to `20,822cr in FY2012-13.
Proposal to continue to allow repatriation of dividends
from foreign subsidiaries of Indian companies at a lower
tax rate of 15% up to March 2013.
Introduced MAT on partnership firm.
Positive for all Indian pharmaceutical companies.
Positive for all pharmaceutical companies.
Positive for all pharmaceutical companies, mainly Indian
companies, as they generate the highest revenue from
export markets.
Would negatively impact Cadila Healthcare and Sun
Pharmaceuticals. Since we have already factored in higher
tax provision for FY2013, we are not changing our
FY2013 estimates for both the companies.
Announcement Impact
Source: Company, Angel Research; Note: Price as on March 16, 2012
Union Budget 2012-13, as expected, is positive for the pharmaceutical sector. As expected, R&D sops would continue to be positive
for the sector as a whole.
The government has again increased budgetary allocation for healthcare spending, which would be an overall positive for the
sector. Indian pharmaceutical companies have been investing on the R&D front to tap opportunities in the domestic and global
markets. To encourage the same, the weighted deduction on R&D expenditure to 200% (in-house research) was extended for a
further period of five years.
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Please refer to important disclosures at the end of this report
CompanyCompanyCompanyCompanyCompany RecoRecoRecoRecoReco CMPCMPCMPCMPCMP TTTTTarget Parget Parget Parget Parget Pricericericericerice EPS (EPS (EPS (EPS (EPS (`````))))) P/E (x)P/E (x)P/E (x)P/E (x)P/E (x) EV/EBITDEV/EBITDEV/EBITDEV/EBITDEV/EBITDA (x)A (x)A (x)A (x)A (x)
(((((`````))))) (((((`````))))) FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E FY2012EFY2012EFY2012EFY2012EFY2012E FY2013EFY2013EFY2013EFY2013EFY2013E
NTPC Buy 173 199 11.6 12.7 14.9 13.6 11.0 10.4GIPCL Buy 69 93 8.5 10.5 8.1 6.6 4.7 3.9
Top Picks
Waiver of basic custom duty on coal
Extension of tax exemption under 80-IA for power
generation companies until FY2013.
Waiver of basic custom duty on coal is a substantial
positive for many private sector power generators, such
as Adani Power and JSW Energy, who rely on imported
coal for running their plants.
As per Section 80-IA exemptions, power plants are eligible
for a tax holiday of 10 years from the year of
commissioning of the plants. The exemption under this
section was applicable to power plants commencing
operations before FY2012 and has now been extended
until FY2013. However, companies have to pay tax under
MAT provisions. Extension of 80-IA benefits would have
a positive impact on private sector power generation
companies. Some of the companies, which would majorly
benefit include Adani Power and Tata Power.
Announcement Impact
Source: Company, Angel Research; Note: Price as on March 16, 2012
Power Positive
Some other positive announcements for the power sector include tax-free bonds worth`10,000cr for financing the power sector,
allowing ECBs to part finance rupee debts of existing power projects and reduction of withholding tax on interest payments on ECBs
from 20% to 5%. In all, the budget is expected to have a positive impact on the power sector.
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Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)
Ratings (Returns) :
Disclaimer
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment
decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are
those of the analyst, and the company may or may not subscribe to all the views expressed within.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading
volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources
believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for
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Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
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Note: Please refer to the importantNote: Please refer to the importantNote: Please refer to the importantNote: Please refer to the importantNote: Please refer to the important Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to theStock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to theStock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to theStock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to theStock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the
latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may havelatest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may havelatest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may havelatest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may havelatest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have
investment positions in the stocks recommended in this report.investment positions in the stocks recommended in this report.investment positions in the stocks recommended in this report.investment positions in the stocks recommended in this report.investment positions in the stocks recommended in this report.
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6th Floor, Ackruti Star, Central Road, MIDC, Andheri (E), Mumbai - 400 093. Tel: (022) 39357800
Research Team
Fundamental:
Sarabjit Kour Nangra VP-Research, Pharmaceutical sarabjit@angelbroking.com
Vaibhav Agrawal VP-Research, Banking vaibhav.agrawal@angelbroking.com
Bhavesh Chauhan Metals & Mining bhaveshu.chauhan@angelbroking.com
Sharan Lillaney Mid-cap sharanb.lillaney@angelbroking.com
V Srinivasan Research Associate (Cement, Power) v.srinivasan@angelbroking.com
Yaresh Kothari Research Associate (Automobile) yareshb.kothari@angelbroking.com
Nitin Arora Research Associate (Infra, Real Estate) nitin.arora@angelbroking.com
Ankita Somani Research Associate (IT, Telecom) ankita.somani@angelbroking.com
Varun Varma Research Associate (Banking) varun.varma@angelbroking.com
Saurabh Taparia Research Associate (Cement, Power) Sourabh.taparia@angelbroking.com
Technicals:
Shardul Kulkarni Sr. Technical Analyst shardul.kulkarni@angelbroking.com
Sameet Chavan Technical Analyst sameet.chavan@angelbroking.com
Sacchitanand Uttekar Technical Analyst sacchitanand.uttekar@angelbroking.com
Derivatives:
Siddarth Bhamre Head - Derivatives siddarth.bhamre@angelbroking.com
Institutional Sales Team:
Mayuresh Joshi VP - Institutional Sales mayuresh.joshi@angelbroking.com
Hiten Sampat Sr. A.V.P- Institution sales hiten.sampat@angelbroking.com
Meenakshi Chavan Dealer meenakshis.chavan@angelbroking.com
Gaurang Tisani Dealer gaurangp.tisani@angelbroking.com
Akshay Shah Sr. Executive akshayr.shah@angelbroking.com
Production Team:
Simran Kaur Research Editor simran.kaur@angelbroking.com
Dilip Patel Production dilipm.patel@angelbroking.com
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