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Market OutlookAugust 24, 2012
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Market OutlookAugust 24, 2012
Dealers DiaryIndian markets are expected to open in the red, tracing negative opening trades in
the SGX Nifty and the Asian indices. Asian stocks fell from the highest level since
May amid signs of slower growth in the U.S. and China and on concern Europes
leaders arent making progress in solving the regions debt crisis.
The US markets closed in the red in yesterdays trading session. The weakness on
Wall Street was partly due to the release of a report from the Labor Department
showing an unexpected increase in initial jobless claims in the week ended August
18th. Worries about the financial situation in Europe also helped to drag stocks
lower, with traders keeping a close eye on a meeting between German Chancellor
Angela Merkel and French President Francois Hollande. Disappointing earnings
news from Hewlett-Packard (HPQ) also weighed on the markets, with the PC giant
plunging by 8.2%.
Indian shares ended largely unchanged on Thursday, as political tensions over the
CAG report on coal block allocation and lingering worries about inflation and the
interest rate outlook offset positive global cues. Investors continue to wait for some
policy action from the government to step up growth and boost investor
confidence.
Markets TodayThe trend deciding level for the day is 17,872 / 5,419 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 17,951 18,052 / 5,445 5,474 levels. However, if NIFTY trades below
17,872 / 5,419 levels for the first half-an-hour of trade then it may correct up to
17,771 17,692 / 5,390 5,365 levels.
SENSEX 17,692 17,771 17,872 17,951 18,052
NIFTY 5,365 5,390 5,419 5,445 5,474
News Analysis DLF in discussion to sell Aman resorts for $350 million Result Review- Shree CementRefer detailed news analysis on the following page
Net Inflows (August 22, 2012)
FII 1,551 2,041 (491) 1,681 60,131
MFs 564 598 (33) (459) (8,929)
FII Derivatives (August 23, 2012)
Index Futures 1,398 1,402 (4) 17,678
Stock Futures 3,220 3,297 (77) 26,290
Gainers / Losers
Voltas 116 4.5 Opto Circuits 121 (12.3)
Gujarat State Pet 77 4.2 Adani Ports 111 (4.9)
Shree Cement 3,385 3.8 Jet Air India 380 (4.4)
Manappuram Finance 36 3.5 Bajaj Finserv 885 (4.3)
India Cements 92 3.3 Mcleod Russel 299 (3.7)
BSE Sensex 0.0 3.4 17,850
Nifty 0.1 2.5 5,415
MID CAP (0.1) (5.2) 6,155
SMALL CAP (0.1) (8.2) 6,627
BSE HC 0.5 37.7 7,402
BSE PSU (0.4) (25.0) 7,135
BANKEX (0.2) (24.2) 12,002
AUTO (0.8) (80.3) 9,592
METAL 0.5 52.6 10,482
OIL & GAS (1.1) (89.5) 8,427
BSE IT 1.8 103.1 5,822
Dow Jones (0.9) (115.3) 13,057NASDAQ (0.7) (20.3) 3,053
FTSE 0.0 2.4 5,777
Nikkei 0.5 46.4 9,178
Hang Seng 1.2 244.5 20,132
Straits Times 0.2 6.9 3,056
Shanghai Com 0.3 5.4 2,113
INFY 0.3 0.1 $43.6
WIT 0.1 0.0 $8.1IBN (0.8) (0.3) $35.1
HDB (1.2) (0.4) $34.9
Advances 1317 640
Declines 1,498 794
Unchanged 137 89
BSE 1,951
NSE 10,110
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Market OutlookAugust 24, 2012
DLF in discussion to sell Aman resorts for $350 million
Country's largest realty firm DLF is in advance stage of discussion to sell luxury
hospitality business Aman resorts for around $350mn (about `1,900cr) and the
deal may be finalised next month. Recently, DLF sold 17 acres of prime land inMumbai to Lodha Developers for `2,700cr - almost four times higher than the
price it had paid in 2005, as part of the company's strategy to exit from non-core
business and cut debt that stood at `22,680cr as on June 30, 2012. DLF had
acquired a controlling stake in Amanresorts for $400 million in 2007. It has now
100% stake in the hospitality chain that has about 25 resorts across the world. DLF
aims to cut debt by`5,000cr this fiscal by selling three major non-core businesses
- Mumbai land, Aman resorts and wind energy.
Result Review
Shree Cement (CMP:`3,385/TP: /Upside :-)
Shree Cement reported its 5QFY2012 results. Top-line grew by 42.8% yoy to
`1,455cr due to robust growth in revenues of both the cement and power
divisions. The growth in cement division is led by improvement in realization as
well as volume growth. Power division posted healthy revenues due to growth in
volumes aided by 300MW of additional power capacity on a yoy basis. OPM grew
by 763bp yoy to 33%. Consequently, Net profit stood at `352cr (vs. `55cr in
1QFY2012).
FY2013E 5,519 24.5 546 157 22.3 21.6 4.4 7.5 111
FY2014E 6,293 23.7 785 225 26.0 15.0 3.5 6.2
Note: * Computed on TTM basis
Economic and Political News Ready to discuss threadbare CAG report on coal issue: Govt CCI orders probe against 5 chemist and druggist associations NDA sticks to demand for PM's resignation Mamata opposes FDI in retail, other sectorsCorporate News Government defers M&Ms FDI proposal for JV with Rafael Defense IREL applies for mining of rare earth in Puri coast Paradeep Phosphates to invest`600cr in new projects Banking operations remain disrupted on second day of strike
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
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Global economic events release calendar
Date Country Event Description Unit Period Bloomberg Data
Last Reported Estimated
Aug 24 2012 12:00AM UK GDP (YoY) % Change 2Q P (0.80) (0.60)
Aug 28 2012 12:00AM US Consumer ConfidenceS.A./
1985=100 Aug 65.90 65.00
Aug 29 2012 12:00AM US GDP Qoq (Annualised) % Change 2Q S 1.50 1.70
Aug 30 2012 12:00AM Germany Unemployment change (000's) Thousands Aug 7.00 --
Aug 31 2012 12:00AM India Qtrly GDP YoY% % Change 2Q 5.30 --
Sep 1 2012 12:00AM China PMI Manufacturing Value Aug 50.10 --
Sep 3 2012 12:00AM India Imports YoY% % Change Jul (13.46) --
India Exports YoY% % Change Jul (5.45) --
UK PMI Manufacturing Value Aug 45.40 --
Sep 6 2012 12:00AM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 2Q P (0.20) --
UK BOE Announces rates % Ratio Sep 6 0.50 0.50
Euro Zone ECB announces interest rates % Sep 6 0.75 --
Sep 7 2012 12:00AM UK Industrial Production (YoY) % Change Jul (4.30) --
US Change in Nonfarm payrolls Thousands Aug 163.00 --
US Unnemployment rate % Aug 8.30 --
Sep 9 2012 12:00AM China Industrial Production (YoY) % Change Aug 9.20 --
China Consumer Price Index (YoY) % Change Aug 1.80 --
Sep 10 2012 12:00AM China Exports YoY% % Change Aug 1.00 --
Sep 12 2012 12:00AM UK Jobless claims change % Change Aug (5.90) --
India Industrial Production YoY % Change Jul (1.80) --
Sep 13 2012 12:00AM US Producer Price Index (mom) % Change Aug 0.30 --
US FOMC rate decision % Sep 13 0.25 --
Sep 14 2012 12:00AM Euro Zone Euro-Zone CPI (YoY) % Aug 2.40 --
IndiaMonthly Wholesale PricesYoY%
% Change Aug 6.87 --
US Industrial Production % Aug 0.65 --
US Consumer price index (mom) % Change Aug -- --
Sep 17 2012 12:00AM India RBI Repo rate % Sep 17 8.00 --
India RBI Cash Reserve ratio % Sep 17 4.75 --
India RBI Reverse Repo rate % Sep 17 7.00 --
Sep 18 2012 12:00AM UK CPI (YoY) % Change Aug 2.60 --
Sep 19 2012 12:00AM US Existing home sales Millions Aug 4.47 --
US Housing Starts Thousands Aug 746.00 --
US Building permits Thousands Aug 812.00 --
Source: Bloomberg, Angel Research
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August 24, 2012
Market Outlook
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Market StrategyAugust 24, 2012
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Macro watch
Exhibit 1 :Q uarterly G D P trends
5. 9
7 .5
9. 8
7. 4
9 .4
8. 5
7. 68. 2
9. 2
8. 0
6. 76. 1
5. 3
3. 0
4. 0
5. 0
6. 0
7. 0
8. 0
9. 0
10.0
4Q
FY09
1Q
FY10
2Q
FY10
3Q
FY10
4Q
FY10
1Q
FY11
2Q
FY11
3Q
FY11
4Q
FY11
1Q
FY12
2Q
FY12
3Q
FY12
4Q
FY12
(%)
Source: CSO, Ang el Research
Exhibit 2 :IIP trends
3 .7 3. 42. 5
(5.0)
6. 0
2 .7
1. 0
4. 3
(2.8) (0.9)
2. 5
(1.8)
(6.0)
(4.0)
(2.0)
-
2. 0
4. 0
6. 0
8. 0
Ju
l-11
Aug
-11
Sep
-11
O
ct-11
Nov
-11
Dec
-11
Jan
-12
Fe
b-1
2
M
ar
-12
Apr
-12
M
ay
-12
Jun
-12
(%)
Source: M O SPI, Ang el Research
Exhibit 3 :M onthly WPI inflation trends
9. 8 10.0 9. 9 9. 5
7. 76. 9
7. 4 7. 7 7. 5 7. 6 7. 3 6. 9
0. 0
2. 0
4. 0
6. 0
8. 0
10.0
12.0
Aug
-11
Sep
-11
O
ct-11
Nov
-11
Dec
-11
Jan
-12
Fe
b-
12
M
ar-
12
Apr-
12
M
ay
-12
Jun
-12
Ju
l-12
(%)
Source: M O SPI, Ang el Research
Exhibit 4 :M a nufacturing a nd services PM I
48.0
50.0
52.0
54.0
56.0
58.0
60.0
Ju
l-11
Aug
-11
Sep
-11
O
ct-11
Nov
-11
Dec
-11
Jan
-12
Fe
b-1
2
M
ar
-12
Apr
-12
M
ay
-12
Jun
-12
Ju
l-12
M fg. PM I Services PM I
Source: Ma rket, Angel Research; N ote: Level above 50 indicates expansion
Exhibit 5 :Expo rts an d impo rts growth trends
(30.0)
(15.0)
0. 0
15.0
30.0
45.0
60.0
75.0
Ju
l-11
Aug
-11
Sep
-11
O
ct-11
Nov
-11
Dec
-11
Jan
-12
Fe
b-1
2
M
ar
-12
Apr
-12
M
ay
-12
Jun
-12
Expo rts yo y g ro wth Im ports yo y growth( %)
Source: Bloomberg, Angel Research
Exhibit 6 :Key policy rates
4.00
5.00
6.00
7.00
8.00
9.00
Aug
-11
Sep
-11
O
ct-11
Nov
-11
Dec
-11
Jan
-12
Fe
b-1
2
M
ar-
12
Apr-
12
M
ay
-12
Jun
-12
Ju
l-12
Aug
-12
Repo rate Reverse Repo rate C RR(%)
Source: RBI, Angel Research
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Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
Agri / Agri Chemical
Rallis Neutral 135 - 2,630 1,466 1,686 14.8 14.8 7.0 8.1 19.3 16.7 4.1 3.5 22.6 22.5 1.9 1.6
United Phosphorus Buy 111 170 5,130 8,421 9,263 16.5 16.5 15.0 17.0 7.4 6.5 1.1 1.0 15.6 15.5 0.8 0.7
Auto & Auto Ancillary
Amara Raja Batteries Accumulate 377 402 3,221 2,844 3,225 15.4 15.5 31.7 36.6 11.9 10.3 3.1 2.4 28.8 26.2 1.1 0.9
Apollo Tyres Neutral 95 - 4,776 13,412 15,041 11.0 11.0 11.5 14.2 8.3 6.7 1.4 1.2 18.7 19.4 0.5 0.4
Ashok Leyland Buy 22 30 5,840 14,920 16,850 9.0 9.3 2.2 2.8 10.1 8.0 1.9 1.6 13.3 15.6 0.5 0.4
Automotive Axle Buy 345 430 521 993 1,140 11.6 11.5 36.9 43.0 9.3 8.0 1.9 1.6 21.2 21.3 0.6 0.4Bajaj Auto Neutral 1,708 - 49,435 21,285 23,927 18.2 18.3 108.5 121.3 15.7 14.1 6.5 5.3 46.1 41.3 1.9 1.7
Bharat Forge Buy 287 351 6,686 7,004 7,985 16.2 16.4 20.3 25.1 14.1 11.5 2.6 2.2 20.0 20.9 1.1 1.0
Bosch India Neutral 8,675 - 27,238 9,034 10,286 17.8 18.3 373.6 435.8 23.2 19.9 4.8 4.0 20.5 19.8 2.7 2.3
CEAT Buy 123 164 420 4,989 5,634 8.7 8.5 32.7 41.1 3.8 3.0 0.6 0.5 15.8 16.9 0.3 0.2
Exide Industries Buy 129 149 10,991 5,899 6,771 16.0 17.0 7.4 9.1 17.6 14.2 3.1 2.7 19.0 20.2 1.5 1.3
FAG Bearings Neutral 1,586 - 2,636 1,505 1,747 17.7 18.0 111.5 130.0 14.2 12.2 3.0 2.4 22.8 21.7 1.5 1.2
Hero Motocorp Buy 1,934 2,428 38,621 26,097 29,963 15.0 15.3 139.5 151.8 13.9 12.7 6.5 5.0 54.6 44.3 1.2 1.0
JK Tyre Accumulate 124 135 508 7,517 8,329 6.1 6.3 26.2 38.5 4.7 3.2 0.6 0.5 13.4 17.2 0.4 0.3
Mahindra and Mahindra Accumulate 772 879 47,378 36,536 41,650 11.6 11.5 49.3 54.9 15.7 14.1 3.2 2.8 22.1 21.1 1.0 0.9
Maruti Neutral 1,180 - 34,089 42,887 49,079 5.5 6.6 66.8 87.6 17.7 13.5 2.0 1.8 12.1 14.1 0.6 0.5
Motherson Sumi Buy 183 216 7,190 23,342 26,366 7.8 8.2 13.3 18.0 13.8 10.2 3.3 2.6 26.2 28.4 0.5 0.4
Subros Buy 29 34 174 1,230 1,378 8.8 8.6 4.5 5.7 6.4 5.1 0.6 0.6 9.8 11.8 0.4 0.3
Tata Motors Buy 245 292 65,348 195,096 219,428 12.8 12.8 39.0 43.9 6.3 5.6 1.8 1.4 32.6 28.2 0.4 0.3
TVS Motor Accumulate 39 43 1,850 7,545 8,301 6.2 6.1 4.9 5.4 7.9 7.3 1.4 1.2 18.8 18.2 0.2 0.2
Capital Goods
ABB* Sell 754 498 15,985 8,760 10,023 5.5 7.5 12.4 20.7 60.7 36.4 5.8 5.2 10.1 15.2 1.8 1.6BGR Energy Neutral 271 - 1,954 3,669 4,561 11.0 11.0 24.7 29.6 11.0 9.2 1.6 1.5 15.3 16.7 - 0.6
BHEL Neutral 233 - 57,115 47,801 43,757 19.4 19.8 25.7 23.9 9.1 9.8 1.9 1.7 22.7 18.3 1.1 1.0
Blue Star Neutral 184 - 1,655 3,047 3,328 5.4 6.9 12.5 16.2 14.7 11.3 3.6 2.9 26.1 28.2 0.6 0.5
Crompton Greaves Neutral 122 - 7,833 12,691 14,096 7.0 8.5 6.5 9.1 18.8 13.4 2.0 1.8 11.1 14.2 0.6 0.6
Jyoti Structures Buy 38 67 313 2,622 2,801 10.6 11.0 10.9 13.4 3.5 2.8 0.5 0.4 13.7 14.9 0.3 0.3
KEC International Buy 58 69 1,500 6,858 7,431 7.5 8.3 9.0 11.5 6.5 5.1 1.2 1.0 26.9 27.2 0.3 0.3
LMW Neutral 1,959 - 2,207 2,369 2,727 11.7 11.7 143.4 166.0 13.7 11.8 2.3 2.1 17.4 18.4 0.5 0.3
Thermax Neutral 502 - 5,977 5,514 5,559 8.9 9.6 26.9 28.4 18.7 17.7 3.2 2.9 18.4 17.1 1.0 1.0
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Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
Cement
ACC Neutral 1,346 - 25,276 11,220 12,896 20.0 20.6 71.1 81.2 18.9 16.6 3.3 3.0 18.1 19.0 2.0 1.6
Ambuja Cements Neutral 191 - 29,373 10,205 11,659 24.6 24.2 10.8 12.0 17.6 15.9 3.7 3.3 19.7 19.8 2.5 2.1
India Cements Neutral 92 - 2,811 4,393 4,914 19.3 19.5 10.1 12.7 9.1 7.2 0.8 0.7 8.8 10.6 1.1 1.0
J K Lakshmi Cements Neutral 96 - 1,180 1,964 2,278 19.5 20.4 16.3 17.9 5.9 5.4 0.9 0.8 14.7 14.6 0.8 1.1
Madras Cements Neutral 186 - 4,427 3,608 3,928 27.4 26.9 15.6 18.1 11.9 10.3 1.9 1.6 16.8 16.9 1.9 1.6
Shree Cements Neutral 3,385 - 11,792 5,519 6,293 24.5 23.7 156.6 225.3 21.6 15.0 5.4 4.6 22.3 26.0 1.8 1.5
UltraTech Cement Neutral 1,725 - 47,276 20,167 22,752 21.7 23.0 90.8 107.8 19.0 16.0 19.0 16.0 - - 1.9 1.8Construction
Ashoka Buildcon Buy 258 304 1,356 2,014 2,293 22.4 22.4 22.6 26.7 11.4 9.7 1.2 1.1 11.4 11.9 2.5 2.8
Consolidated Co Neutral 15 - 270 2,262 2,522 6.7 7.5 1.5 2.7 9.8 5.5 0.4 0.4 4.4 7.5 0.4 0.4
Hind. Const. Neutral 17 - 1,010 4,239 4,522 9.9 11.2 (2.3) (1.0) (7.4) (17.3) 0.9 1.0 (11.4) (5.6) 1.1 1.2
IRB Infra Buy 126 166 4,171 3,964 4,582 42.3 40.2 15.5 16.9 8.1 7.4 1.3 1.1 16.6 15.8 2.6 2.5
ITNL Buy 169 232 3,274 6,840 7,767 26.4 26.1 24.4 28.4 6.9 6.0 1.0 0.9 16.0 16.2 2.7 2.8
IVRCL Infra Buy 43 61 1,139 5,510 6,722 8.8 9.0 2.5 4.6 16.8 9.3 0.6 0.5 3.4 5.8 0.7 0.6
Jaiprakash Asso. Buy 77 91 16,416 15,259 17,502 25.7 24.7 4.2 5.0 18.2 15.4 1.5 1.4 8.5 9.3 2.4 2.1
Larsen & Toubro Accumulate 1,433 1,553 87,959 60,474 69,091 12.1 11.5 79.7 85.4 18.0 16.8 3.0 2.7 16.3 15.1 1.6 1.4
Madhucon Proj Buy 34 56 248 2,206 2,502 10.7 10.7 4.6 4.7 7.2 7.2 0.4 0.4 5.2 5.0 0.7 0.7
Nagarjuna Const. Buy 38 45 969 5,804 6,513 8.0 8.6 3.0 3.5 12.4 10.8 0.4 0.4 3.2 3.6 0.6 0.7
Patel Engg. Neutral 77 - 534 3,609 3,836 13.1 13.1 14.0 14.6 5.5 5.3 0.3 0.3 6.3 6.1 1.0 1.0
Punj Lloyd Neutral 51 - 1,705 11,892 13,116 8.9 8.9 1.7 3.1 30.3 16.6 0.6 0.6 1.9 3.4 0.6 0.5
Sadbhav Engg. Buy 134 182 2,022 2,789 3,147 10.6 10.7 8.4 10.4 15.9 12.9 2.2 1.9 15.0 15.6 0.9 0.8
Simplex Infra Buy 208 265 1,031 6,732 7,837 8.1 8.4 23.5 29.4 8.9 7.1 0.8 0.7 9.6 11.0 0.5 0.4
FinancialsAllahabad Bank Neutral 126 - 6,285 7,233 8,579 3.1 3.3 40.5 40.9 3.1 3.1 0.6 0.5 19.4 17.0 - -
Andhra Bank Neutral 96 - 5,397 4,959 5,787 3.1 3.1 22.7 24.5 4.3 3.9 0.7 0.6 16.0 15.3 - -
Axis Bank Buy 1,095 1,373 45,355 15,961 19,583 3.1 3.2 117.3 143.1 9.3 7.7 1.7 1.5 20.1 20.8 - -
Bank of Baroda Buy 646 829 25,312 15,830 19,300 2.6 2.7 118.9 147.1 5.4 4.4 0.9 0.7 16.7 18.0 - -
Bank of India Accumulate 281 323 16,106 13,159 15,851 2.4 2.5 61.1 71.1 4.6 4.0 0.8 0.7 16.6 17.0 - -
Bank of Maharashtra Neutral 45 - 2,665 3,471 3,889 3.1 3.1 9.0 11.5 5.0 4.0 0.6 0.6 13.7 15.5 - -
Canara Bank Buy 338 421 14,993 11,334 13,629 2.2 2.3 75.4 85.1 4.5 4.0 0.7 0.6 15.2 15.3 - -
Central Bank Accumulate 66 70 4,891 7,181 8,365 2.5 2.7 16.3 21.8 4.1 3.1 0.7 0.6 12.7 15.1 - -
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Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
Financials
Corporation Bank Buy 379 436 5,617 5,067 5,998 2.1 2.3 105.6 111.0 3.6 3.4 0.6 0.5 17.6 16.3 - -
Dena Bank Buy 90 107 3,154 3,177 3,595 2.8 2.8 25.2 25.4 3.6 3.6 0.6 0.6 18.9 16.4 - -
Federal Bank Accumulate 435 459 7,440 2,697 3,171 3.4 3.4 47.9 58.0 9.1 7.5 1.2 1.0 13.6 14.7 - -
HDFC Reduce 720 671 109,216 7,340 8,805 3.5 3.5 31.5 37.8 22.8 19.0 4.6 4.1 34.8 32.2 - -
HDFC Bank Neutral 598 - 140,867 21,936 27,454 4.4 4.4 28.7 36.0 20.8 16.6 4.0 3.4 20.7 22.0 - -
ICICI Bank Buy 973 1,169 111,858 22,356 27,157 2.9 3.0 68.7 82.0 14.2 11.9 1.7 1.6 14.2 15.5 - -
IDBI Bank Buy 87 101 11,084 7,952 9,876 1.9 2.2 18.5 23.6 4.7 3.7 0.6 0.5 12.8 14.7 - -Indian Bank Accumulate 167 190 7,164 6,294 7,191 3.4 3.4 40.6 44.9 4.1 3.7 0.7 0.6 18.1 17.4 - -
IOB Accumulate 71 80 5,659 7,473 8,732 2.5 2.5 16.7 22.6 4.3 3.1 0.5 0.4 11.8 14.4 - -
J & K Bank Accumulate 942 1,026 4,566 2,625 2,921 3.6 3.5 194.4 191.9 4.9 4.9 1.0 0.8 21.2 18.0 - -
LIC Housing Finance Accumulate 250 279 12,612 1,867 2,338 2.4 2.4 21.1 28.5 11.9 8.8 2.0 1.7 17.5 20.4 - -
Oriental Bank Buy 236 278 6,878 6,518 7,458 2.8 2.9 61.3 65.1 3.9 3.6 0.6 0.5 15.2 14.3 - -
Punjab Natl.Bank Buy 716 950 24,284 20,116 23,625 3.3 3.4 152.8 173.9 4.7 4.1 0.8 0.7 18.2 18.0 - -
South Ind.Bank Buy 22 27 2,549 1,514 1,717 2.8 2.7 4.0 4.2 5.6 5.3 1.1 0.9 20.5 18.5 - -
St Bk of India Buy 1,912 2,270 128,334 64,470 75,940 3.5 3.5 224.4 258.7 8.5 7.4 1.4 1.2 17.6 17.8 - -
Syndicate Bank Buy 96 119 5,749 6,840 7,996 2.9 3.0 25.7 29.2 3.7 3.3 0.6 0.5 17.9 17.8 - -
UCO Bank Neutral 67 - 4,467 5,488 6,338 2.4 2.5 17.3 17.7 3.9 3.8 0.8 0.7 17.0 15.3 - -
Union Bank Buy 164 230 9,001 10,299 12,227 2.9 3.0 42.1 49.3 3.9 3.3 0.7 0.6 16.7 17.1 - -
United Bank Buy 53 79 1,915 3,634 4,194 2.8 2.9 18.2 23.0 2.9 2.3 0.4 0.4 15.0 16.7 - -
Vijaya Bank Neutral 51 - 2,547 2,579 3,028 2.1 2.3 8.8 11.6 5.8 4.5 0.7 0.6 11.1 13.3 - -
Yes Bank Buy 354 453 12,577 3,255 4,228 2.8 3.0 34.2 42.7 10.4 8.3 2.2 1.8 23.3 23.8 - -
FMCG
Asian Paints Neutral 3,696 - 35,455 11,198 13,184 16.3 16.3 121.0 144.8 30.6 25.5 10.3 8.1 37.4 35.3 3.1 2.6Britannia Buy 477 584 5,698 5,835 6,824 5.7 6.0 20.7 25.4 23.1 18.8 9.1 7.0 43.1 41.9 0.9 0.7
Colgate Neutral 1,182 - 16,074 3,018 3,429 20.9 22.3 34.6 41.0 34.2 28.9 31.5 23.9 99.5 94.1 5.2 4.5
Dabur India Neutral 120 - 20,835 6,124 7,030 17.0 16.8 4.5 5.2 26.8 23.1 11.0 8.7 43.2 41.5 3.4 2.9
GlaxoSmith Con* Neutral 2,862 - 12,038 3,124 3,663 17.1 17.6 104.5 123.8 27.4 23.1 8.5 6.8 34.4 32.8 3.5 2.9
Godrej Consumer Neutral 655 - 22,278 6,097 7,233 18.4 18.6 21.9 26.5 29.9 24.8 6.6 5.5 25.5 25.4 3.8 3.2
HUL Neutral 519 - 112,191 25,350 28,974 13.9 13.9 14.3 16.5 36.4 31.5 21.7 16.7 70.9 59.8 4.2 3.6
ITC Neutral 264 - 206,715 29,513 33,885 35.4 35.8 9.3 10.8 28.4 24.5 9.4 7.9 35.6 35.0 6.7 5.8
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Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
FMCG
Marico Neutral 194 - 12,491 4,840 5,643 13.1 13.1 6.8 8.5 28.6 22.9 7.9 6.0 31.4 29.7 2.6 2.2
Nestle* Neutral 4,696 - 45,273 8,610 10,174 20.9 21.2 114.8 139.8 40.9 33.6 24.7 17.2 71.2 60.3 5.3 4.4
Tata Global Neutral 131 - 8,101 7,207 7,927 9.7 10.0 6.6 7.9 19.8 16.7 2.0 1.9 8.6 9.5 1.0 0.9
IT
HCL Tech Neutral 560 - 38,808 24,400 27,049 18.6 17.5 41.1 45.0 13.6 12.4 3.1 2.6 22.7 21.1 1.5 1.3
Hexaware Accumulate 124 133 3,661 1,947 2,161 22.0 21.4 11.4 12.1 10.9 10.2 2.8 2.4 26.4 24.0 1.6 1.4
Infosys Neutral 2,472 - 141,921 39,151 41,743 31.6 31.9 161.9 174.5 15.3 14.2 3.6 3.1 23.8 22.1 3.0 2.7Infotech Enterprises Neutral 180 - 2,005 1,889 2,065 18.0 17.5 18.0 19.7 10.0 9.2 1.5 1.3 14.5 13.7 0.7 0.6
KPIT Cummins Neutral 132 - 2,363 2,149 2,331 15.6 14.8 10.7 11.2 12.4 11.8 2.6 2.1 20.6 17.8 1.1 0.9
Mahindra Satyam Neutral 101 - 11,898 7,574 8,062 19.6 18.4 9.5 9.7 10.7 10.5 1.7 1.5 16.1 14.1 1.2 1.0
Mindtree Neutral 682 - 2,777 2,341 2,513 18.6 17.1 66.5 70.8 10.3 9.6 2.3 1.8 22.3 19.3 1.0 0.9
Mphasis Neutral 385 - 8,092 5,704 6,009 18.6 17.7 36.0 37.1 10.7 10.4 1.5 1.3 14.0 12.6 0.9 0.8
NIIT Buy 34 40 562 1,162 1,304 14.8 15.1 7.1 8.8 4.8 3.9 0.8 0.7 16.7 18.4 0.3 0.2
Persistent Neutral 380 - 1,521 1,193 1,278 25.6 24.3 42.6 44.3 8.9 8.6 1.5 1.3 17.2 15.5 0.9 0.8
TCS Neutral 1,321 - 258,578 61,046 67,507 29.3 29.1 67.3 72.4 19.6 18.2 6.3 5.2 31.9 28.3 4.0 3.6
Tech Mahindra Neutral 865 - 11,036 6,148 6,434 18.4 17.6 91.8 97.6 9.4 8.9 2.2 1.8 23.4 20.2 1.8 1.6
Wipro Buy 363 420 89,453 43,492 48,332 19.4 19.3 25.1 28.0 14.5 13.0 2.7 2.3 18.6 18.0 1.7 1.4
Media
D B Corp Buy 184 236 3,373 1,597 1,785 22.9 24.2 11.1 13.9 16.5 13.2 3.2 2.7 20.2 22.1 2.0 1.7
HT Media Buy 87 113 2,042 2,111 2,263 15.2 15.2 7.3 8.1 11.9 10.7 1.3 1.1 11.2 11.2 0.5 0.4
Jagran Prakashan Buy 92 112 2,910 1,506 1,687 22.5 23.2 6.2 7.0 14.8 13.1 3.6 3.2 25.0 25.7 2.1 1.9
PVR Neutral 185 - 480 625 732 17.4 17.1 13.3 15.6 13.9 11.8 1.5 1.3 13.2 13.8 1.2 1.0
Sun TV Network Neutral 299 - 11,797 1,981 2,239 77.0 76.7 18.6 21.3 16.1 14.0 4.1 3.6 27.1 27.5 5.4 4.6Metals & Mining
Bhushan Steel Neutral 462 - 9,821 11,979 14,584 31.6 31.0 49.2 61.4 9.4 7.5 1.2 1.1 14.1 15.2 2.8 2.3
Coal India Accumulate 359 385 226,631 69,808 75,550 27.4 27.4 26.0 28.3 13.8 12.7 4.0 3.2 32.5 28.1 2.3 2.0
Electrosteel Castings Buy 19 23 659 1,984 2,074 11.2 12.6 2.5 2.9 7.7 6.6 0.4 0.1 5.1 5.7 0.5 0.5
Hind. Zinc Accumulate 132 144 55,859 12,446 13,538 52.3 52.9 14.3 15.5 9.3 8.5 1.8 1.5 20.5 18.9 2.6 2.0
Hindalco Neutral 113 - 21,673 84,855 92,446 8.7 9.3 13.2 16.2 8.6 7.0 0.6 0.6 7.8 8.9 0.6 0.6
JSW Steel Neutral 719 - 16,048 38,740 41,459 17.3 17.0 79.9 89.4 9.0 8.1 0.9 0.8 10.4 10.6 0.8 0.8
MOIL Accumulate 248 271 4,159 918 993 50.7 50.9 24.5 26.1 10.1 9.5 1.5 1.4 16.0 15.5 2.2 1.9
Monnet Ispat Buy 294 379 1,891 2,511 3,303 23.8 26.0 46.3 57.3 6.4 5.1 0.7 0.6 12.4 13.7 1.7 1.2
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Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
Metals & Mining
Nalco Reduce 52 48 13,479 7,401 7,841 16.7 19.2 3.4 4.1 15.3 12.8 1.1 1.0 7.4 8.4 1.3 1.3
NMDC Accumulate 187 214 74,081 12,934 14,266 79.4 80.1 21.1 23.4 8.9 8.0 2.4 1.9 29.6 26.5 3.9 3.3
SAIL Neutral 84 - 34,779 47,252 60,351 14.2 14.8 9.6 11.7 8.8 7.2 0.8 0.7 9.4 10.6 1.2 1.0
Sesa Goa Neutral 190 - 16,548 7,704 8,034 33.6 34.6 42.0 43.1 4.5 4.4 0.9 0.8 22.3 19.2 0.4 -
Sterlite Inds Neutral 112 - 37,488 41,680 45,382 24.2 23.2 16.3 16.9 6.9 6.6 0.7 0.7 11.3 10.7 0.5 0.4
Tata Steel Buy 399 481 38,713 145,799 150,431 10.3 11.2 48.6 63.3 8.2 6.3 0.8 0.7 10.5 12.4 0.5 0.5
Sarda Buy 127 148 456 1,251 1,321 22.7 23.4 33.0 37.1 3.9 3.4 0.6 0.5 15.1 14.8 0.7 0.7Prakash Industries Buy 60 73 807 2,694 2,906 14.6 16.6 17.9 22.6 3.4 2.7 0.4 0.3 11.4 12.8 0.5 0.4
Godawari Power andIspat
Buy 122 161 387 2,341 2,425 15.6 17.3 33.8 43.8 3.6 2.8 0.4 0.4 13.2 14.4 0.5 0.5
Oil & Gas
Cairn India Accumulate 344 380 65,692 16,605 17,258 75.4 71.7 57.0 54.9 6.0 6.3 1.1 0.9 20.2 16.3 3.0 2.3
GAIL Neutral 366 - 46,382 50,176 55,815 15.5 15.8 35.4 36.5 10.3 10.0 1.8 1.6 18.9 17.0 0.1 -
ONGC Accumulate 282 312 240,923 147,139 154,821 33.9 33.7 30.7 32.3 9.2 8.7 1.6 1.4 18.3 17.2 1.4 1.3
Reliance Industries Neutral 794 - 260,147 362,700 380,031 7.9 8.0 61.5 64.3 12.9 12.4 1.3 1.2 10.3 9.9 0.7 0.7
Gujarat Gas Neutral 303 - 3,882 2,472 3,267 16.1 11.5 21.2 19.2 14.3 15.8 4.9 4.2 33.4 28.7 1.5 1.1
Indraprastha Gas Neutral 261 - 3,653 3,040 3,135 24.3 26.7 24.8 27.9 10.5 9.4 2.4 2.0 25.5 23.6 1.2 1.1
Petronet LNG Buy 151 176 11,318 22,696 29,145 8.1 6.6 14.1 14.2 10.7 10.6 3.2 2.6 34.1 26.9 0.6 0.4
Gujarat State PetronetLtd.
Neutral 77 - 4,330 1,041 939 91.8 91.9 8.5 7.4 9.1 10.4 1.5 1.4 18.1 14.0 5.0 5.6
Pharmaceuticals
Alembic Pharma Buy 71 91 1,334 1,624 1,855 14.2 15.6 6.6 9.1 10.7 7.8 2.6 2.0 27.9 29.2 1.0 0.8
Aurobindo Pharma Buy 108 156 3,135 5,243 5,767 14.6 14.6 11.8 12.6 9.1 8.6 0.9 0.4 17.9 16.4 1.1 0.9
Aventis* Neutral 2,171 - 4,999 1,482 1,682 15.5 15.5 95.0 104.0 22.9 20.9 4.1 3.2 18.6 17.0 3.2 2.7Cadila Healthcare Accumulate 874 953 17,893 6,148 7,386 18.6 19.6 36.0 46.1 24.3 19.0 5.7 4.6 25.8 26.8 3.1 2.6
Cipla Accumulate 364 399 29,202 8,031 9,130 23.4 22.4 18.4 20.0 19.8 18.2 3.3 2.8 17.8 16.6 3.4 2.9
Dr Reddy's Neutral 1,672 - 28,377 10,696 11,662 20.7 21.0 83.7 92.9 20.0 18.0 4.1 3.5 22.4 21.0 2.9 2.6
Dishman Pharma Neutral 93 - 754 1,280 1,536 17.8 17.8 9.2 11.3 10.2 8.3 0.8 0.7 7.7 8.5 1.3 1.0
GSK Pharma* Neutral 2,105 - 17,834 2,651 2,993 31.7 31.2 76.0 82.4 27.7 25.6 8.0 7.1 20.1 26.3 5.9 5.1
Indoco Remedies Buy 64 92 587 685 837 15.2 15.2 7.4 8.9 8.6 7.2 1.3 1.1 16.4 17.0 1.0 0.9
Ipca labs Buy 393 475 4,953 2,850 3,474 20.7 20.7 29.2 36.6 13.5 10.7 3.2 2.5 26.1 26.1 1.9 1.5
Lupin Accumulate 579 647 25,858 8,426 10,082 19.7 20.0 27.4 32.4 21.1 17.9 5.1 4.1 26.0 24.7 3.1 2.6
Orchid Chemicals Buy 117 178 824 2,117 2,434 17.7 17.7 16.7 22.2 7.0 5.3 0.6 0.6 9.5 11.5 1.0 0.9
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Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
Pharmaceuticals
Ranbaxy* Neutral 547 - 23,102 12,046 11,980 18.0 15.8 35.7 29.8 15.3 18.4 6.0 4.8 39.1 28.9 2.0 1.9
Sun Pharma Neutral 668 - 69,060 9,752 12,134 41.6 41.6 26.0 28.2 25.7 23.7 4.8 4.1 20.3 18.8 6.3 4.9
Power
CESC Accumulate 321 342 4,010 5,218 5,644 24.2 23.8 44.6 47.6 7.2 6.8 0.8 0.7 11.0 10.6 1.1 1.1
GIPCL Accumulate 67 77 1,020 1,557 1,573 29.3 28.7 10.8 11.0 6.3 6.1 0.7 0.6 10.8 10.2 1.1 1.0
NTPC Neutral 171 - 140,585 74,111 85,789 23.2 23.6 12.4 14.0 13.8 12.1 1.7 1.6 13.0 13.5 2.6 2.4
Real EstateAnant Raj Buy 48 78 1,422 657 875 52.0 56.1 8.4 12.7 5.7 3.8 0.4 0.3 6.3 8.9 3.4 2.6
DLF Neutral 214 - 36,374 9,878 12,033 44.7 46.1 9.6 13.4 22.4 16.0 1.4 1.4 6.4 8.7 6.2 5.1
HDIL Buy 79 115 3,295 2,441 3,344 55.1 48.2 22.7 26.6 3.5 3.0 0.3 0.3 8.8 9.4 3.2 2.4
MLIFE Accumulate 359 396 1,466 813 901 26.2 26.6 32.0 37.1 11.2 9.7 1.2 1.1 10.4 11.0 2.2 1.9
Telecom
Bharti Airtel Neutral 249 - 94,445 79,542 87,535 30.9 32.2 10.3 15.0 24.2 16.5 1.8 1.6 7.2 9.6 1.9 1.6
Idea Cellular Neutral 75 - 24,940 22,988 25,333 26.4 26.9 3.5 4.9 21.7 15.4 1.8 1.6 8.1 10.2 1.5 1.3
Rcom Neutral 54 - 11,177 21,553 22,494 31.0 30.7 3.5 4.5 15.6 12.2 0.3 0.3 1.9 2.4 2.0 1.8
zOthers
Abbott India Neutral 1,593 - 3,386 1,602 1,833 10.4 11.8 54.7 71.7 29.1 22.2 5.5 4.7 20.0 22.7 1.9 1.6
Bajaj Electricals Buy 177 234 1,767 3,569 4,172 8.1 8.8 16.3 21.3 10.9 8.3 2.2 1.9 21.7 24.6 0.5 0.4
Cera Sanitaryware Neutral 354 - 448 396 470 16.7 16.5 28.0 33.2 12.6 10.7 2.6 2.1 23.8 23.1 1.3 1.1
Cravatex Buy 446 785 115 302 364 5.7 6.0 49.0 71.0 9.1 6.3 2.7 1.9 29.8 30.7 0.5 0.4
CRISIL Neutral 918 - 6,439 982 1,136 34.3 34.3 34.3 40.0 26.7 23.0 12.1 9.7 50.9 46.9 6.1 5.1
Finolex Cables Buy 39 61 598 2,334 2,687 8.8 9.3 7.6 10.2 5.1 3.8 0.7 0.6 13.7 16.1 0.2 0.1
Force Motors Buy 438 591 571 2,214 2,765 4.5 5.4 39.5 73.9 11.1 5.9 0.5 0.5 4.4 7.6 0.1 0.1Goodyear India Accumulate 343 370 792 1,543 1,646 8.1 9.2 32.3 39.4 10.6 8.7 2.1 1.8 21.7 22.4 0.3 0.2
Graphite India Buy 81 113 1,582 2,158 2,406 18.1 18.9 12.4 14.0 6.5 5.8 0.9 0.8 14.0 14.3 0.9 0.7
Greenply Industries Buy 187 309 451 1,925 2,235 10.6 10.9 29.6 44.1 6.3 4.2 1.0 0.8 16.8 21.0 0.5 0.4
HEG Accumulate 205 229 820 1,586 1,685 17.9 18.1 16.1 25.7 12.8 8.0 1.0 0.9 7.5 11.6 1.2 1.1
Hitachi Buy 112 130 258 868 977 3.9 6.6 2.7 10.9 41.0 10.4 1.5 1.3 3.7 13.6 0.4 0.3
Honeywell Automation Accumulate 2,533 2,842 2,239 1,847 2,162 4.3 7.3 61.0 120.0 41.5 21.1 3.3 2.8 9.3 16.3 1.1 0.9
INEOS ABS India Accumulate 666 744 1,171 1,056 1,081 8.1 10.6 33.8 46.5 19.7 14.3 2.7 2.3 14.7 17.5 1.0 0.9
ITD Cementation Neutral 232 - 267 1,451 1,669 12.3 12.4 32.4 41.5 7.2 5.6 0.6 0.6 9.4 10.9 0.6 0.6
Jyothy Laboratories Neutral 145 - 2,331 1,248 1,468 9.8 10.4 5.9 7.2 24.4 20.2 3.5 3.2 15.0 16.6 2.2 1.9
MCX Buy 1,160 1,440 5,916 553 624 65.3 66.3 62.5 72.0 18.6 16.1 5.1 4.4 27.5 27.4 7.7 6.4
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Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
zOthers
MRF Buy 10,833 12,884 4,594 11,804 12,727 10.4 10.5 1,289.9 1,431.3 8.4 7.6 1.6 1.3 21.3 19.4 0.5 0.5
Page Industries Neutral 3,099 - 3,457 887 1,108 18.3 18.6 95.0 120.9 32.6 25.6 17.0 13.8 57.4 59.5 3.9 3.1
Relaxo Footwears Buy 573 684 688 1,019 1,208 12.3 13.0 51.0 68.4 11.2 8.4 3.0 2.2 30.3 30.2 0.8 0.7
Sintex Industries Buy 59 79 1,612 4,751 5,189 16.3 16.6 13.6 15.8 4.3 3.7 0.6 0.5 12.9 13.2 0.7 0.6
Siyaram Silk Mills Buy 298 392 279 1,042 1,173 12.4 12.5 66.3 78.5 4.5 3.8 0.9 0.7 21.1 20.8 0.5 0.4
S. Kumars Nationwide Buy 21 45 619 7,279 8,290 21.0 21.0 15.0 17.6 1.4 1.2 0.2 0.2 13.7 13.9 0.7 0.6
SpiceJet Buy 35 43 1,690 5,720 6,599 5.3 6.8 3.6 5.4 9.7 6.5 14.0 4.4 - - 0.4 0.4TAJ GVK Buy 66 108 412 300 319 35.8 36.2 7.9 9.1 8.3 7.2 1.1 1.0 13.9 14.4 1.7 1.4
Tata Sponge Iron Buy 320 424 493 787 837 16.2 17.5 58.5 66.9 5.5 4.8 0.8 0.7 14.9 15.1 0.3 0.2
TVS Srichakra Accumulate 318 335 243 1,476 1,643 7.1 8.2 24.7 42.8 12.9 7.4 1.6 1.3 16.6 24.8 0.4 0.3
United Spirits Neutral 939 - 12,279 10,289 11,421 13.5 14.3 31.0 42.9 30.3 21.9 2.4 2.1 8.1 10.3 1.9 1.7
Vesuvius India Neutral 358 - 727 560 611 16.1 17.0 24.7 28.8 14.5 12.5 2.2 1.9 15.8 16.2 1.2 1.1
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 23, 2012
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