market outlook 010612

7/31/2019 Market Outlook 010612

1/13

Market OutlookJune 1, 2012

www.angelbroking.com


Dealers Diary

The domestic markets are expected to edge lower, tracing negative opening in

most of the Asian bourses and the SGX Nifty, after Chinas manufacturing and U.S.

economic data missed estimates, adding to concern the worlds two largest

economies are slowing.Globally, US markets moved sharply lower in early trading on Thursday as traders

reacted negatively to a another batch of U.S. economic data, including reports that

provided further signs of sluggishness in the labor market. Selling pressure re-

emerged in late-day trading resulting in a lower close. The European markets gave

back their early gains yesterday and largely finished in negative territory, following

the release of the weaker than expected U.S. employment data, the downwardly

revised GDP result and the sharp decline in the Chicago PMI result. Meanwhile,

ECB President Mario Draghi on Thursday said that the bank cannot fix the turmoil

in the currency bloc and urged Eurozone leaders to come up with a 'vision' for

years ahead.

Indian markets fell sharply on Thursday, extending the previous session's losses,

after government data showed that the country's 4QFY2012 GDP slumped to a

nine-year low of 5.3%, reflecting weak business sentiment, high fiscal and current

account deficits and government policy inaction.

Markets Today

The trend deciding level for the day is 16,194 / 4,919 levels. If NIFTY trades above

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

up to 16,302 16,385 / 4,954 4,985 levels. However, if NIFTY trades below

16,194 / 4,919 levels for the first half-an-hour of trade then it may correct up to

16,111 16,003 / 4,889 4,853 levels.

SENSEX 16,003 16,111 16,194 16,302 16,385

NIFTY 4,853 4,889 4,919 4,954 4,985

News Analysis

Indias 4QFY2012 GDP grows at weakest pace in ~9 years Cabinet approves new telecom policy BHEL bags `1,143cr order from NTPC MphasiS 2QFY2012 Result PreviewRefer detailed news analysis on the following page

Net Inflows (May 29, 2012)

FII 1,593 1,405 187 (974) 42,488

MFs 241 363 -122 360 (5,741)

FII Derivatives (May 31, 2012)

Index Futures 3,773 5,025 (1,252) 6,755

Stock Futures 5,646 5,500 146 19,890

Gainers / Losers

Bank of India 340 6.6 Suzlon Energy 18 (8.6)

Dena Bank 92 5.7 United Spirits 564 (7.9)

Uco Bank 69 5.6 Amtek Auto-$ 99 (4.7)

Asian Paints 4,035 5.6 Tata Motors 233 (4.2)

Central Bank 76 5.1 ICICI Bank 784 (4.0)

BSE Sensex (0.6) (93.6) 16,219

Nifty (0.5) (26.5) 4,924

MID CAP 0.4 21.0 5,908

SMALL CAP (0.6) (36.2) 6,271

BSE HC (0.1) (4.9) 6,645

BSE PSU 0.3 19.9 6,760

BANKEX (0.9) (95.3) 10,885

AUTO (2.0) (177.1) 8,873

METAL (0.2) (21.5) 10,106

OIL & GAS 0.1 3.4 7,588

BSE IT 0.4 19.5 5,666

Dow Jones (0.2) (26.4) 12,393NASDAQ (0.4) (10.0) 2,827

FTSE 0.5 23.6 5,321

Nikkei (1.1) (90.5) 8,543

Hang Seng (0.3) (60.7) 18,630

Straits Times (0.4) (11.4) 2,773

Shanghai Com (0.5) (12.4) 2,372

INFY (1.0) (0.4) $42.1

WIT (0.5) (0.0) $8.6IBN (0.4) (0.1) $28.2

HDB (3.3) (0.9) $28.0

Advances 1165 622

Declines 1,449 819

Unchanged 104 57

BSE 1,783

NSE 16,178


2/13



The Indian economy grew at its weakest pace

in nearly nine years in 4QFY2012, suggesting the impact of high inflation and

interest rates as well as added supply constraints and execution slowdown due to

the governments policy impasse. India's gross domestic product (GDP) grew by

5.3% yoy in 4QFY2012 in comparison to 9.2% yoy expansion witnessed in

4QFY2011, due to continued poor performance of the manufacturing and

agriculture sectors. The reading was much lower than Bloombergs survey of

economists at 6.1% and added to the prevailing negative sentiments in the

markets. GDP growth for FY2012 also moderated to 6.5% from 8.4% growth

registered in FY2011.

During 4QFY2012, the

manufacturing sectors output declined by 0.3% yoy from 7.3% registered in

4QFY2011. Growth in farm output also dipped to meager 1.7% yoy from 7.5%

yoy recorded in 4QFY2011. Mining and quarrying production improved by 4.3%

yoy during the quarter, as against subdued growth of 0.6% yoy in 4QFY2011.

Growth in the construction sector also slowed to 4.8% yoy from 8.9% yoy in

4QFY2011.

Growth momentum moderated in

the trade, hotels, transport and communications segments (grew by 7.0% yoy as

against 11.6% witnessed in 4QFY2011) and community, social and personnel

services (grew by 7.1% yoy from 9.5% registered in 4QFY2011). Growth in

business services including insurance and real estate remained strong, however,

with an increase of 10.0% yoy in 4QFY2012 (10.0% in 4QFY2011 as well).

Overall, services sector growth moderated to 7.8% yoy during 4QFY2012 from10.5% registered in 4QFY2011.

Capex cycle for India Inc., which had slowed down considerably over the past few

quarters, showed signs of improvement. Gross fixed capital formation (GFCF),

which had dipped by 0.3% yoy in 3QFY2012, increased by 3.6% yoy during the

quarter. Also, as a result of high inflation, private consumption expenditure growth

remained moderate (6.1% yoy in 4QFY2012 as against 6.4% in 3QFY2012).

The Reserve

Bank of India (RBI) in its latest monetary policy cited slowdown in growth andheadroom provided by moderating core inflation as the primary motivators behind

the larger-than-expected reduction in policy rates. In our view, the recent weak set

of economic data (IIP declined by 3.5%, moderation in GDP growth to 5.3% and

weakening global macro scenario) improves the probability of further rate cuts in

the next monetary policy due in June.


3/13



Exhibit 1:Component-wise GDP growthAgriculture, Forestry & Fishing 193,955 190,778 1.7 728,668 709,104 2.8

Mining & Quarrying 30,798 29,520 4.3 108,468 109,422 (0.9)

Manufacturing 208,999 209,523 (0.3) 793,468 774,162 2.5

Electricity, Gas & Water Supply 24,839 23,684 4.9 98,105 90,946 7.9

Construction 108,385 103,378 4.8 404,617 384,199 5.3

Trade, Hotels, Transport & Commn. 391,527 365,994 7.0 1,462,774 1,330,455 9.9

Fin., Ins, Real Estate & Business Services 243,294 221,114 10.0 931,715 849,995 9.6

Community, Social & Personal Services 193,275 180,493 7.1 674,703 637,675 5.8

Source: CSO, Angel Research

Exhibit 2:GDP component-wise yoy growth trendsAgriculture, Forestry & Fishing 1.7 2.8 3.1 3.7 7.5 11.0 4.9 3.1

Mining & Quarrying 4.3 (2.8) (5.4) (0.2) 0.6 6.1 7.3 6.9

Manufacturing (0.3) 0.6 2.9 7.3 7.3 7.8 6.1 9.1

Electricity, Gas & Water Supply 4.9 9.0 9.8 7.9 5.1 3.8 0.3 2.9

Construction 4.8 6.6 6.3 3.5 8.9 8.7 6.0 8.4

Trade, Hotels, Transport & Commn. 7.0 10.0 9.5 13.8 11.6 9.7 10.6 12.6

Fin., Ins, Real Estate & Business Services 10.0 9.1 9.9 9.4 10.0 11.2 10.4 10.0

Community, Social & Personal Services 7.1 6.4 6.1 3.2 9.5 (0.8) 4.5 4.4


The Cabinet, yesterday, approved National Telecom Policy (NTP) 2012 that

proposes to abolish roaming charges on mobile phones and allow users to retain

the same number across the country. NTP 2012 aims to provide free roaming to

telecom users and allow them to retain their mobile number even outside their

circles without having to pay any extra charge. However, consumers will have to

wait for some time before roaming charges are abolished and one-number-one-

nation concept implements, as DoT will first workout modalities of the new scheme

before it is brought into force. NTP 2012 envisages increasing penetration oftelecom services in rural areas from the current level of ~39% to 70% by 2017

and 100% by 2020. The new policy, which will separate licenses and airwaves and

will allow sharing of airwaves among carriers, also seeks to facilitate consolidation

in the telecom industry. Pricing of airwaves is, however, not part of the telecom

policy and will be set through an open auction process.

BHEL has bagged a `1,143cr contract from NTPC for setting up a 500-MW power

generating unit at its Vindhyachal Super Thermal Power Station in Madhya

Pradesh. The order includes supply and installation of the main plant package

(boilers, turbines and generators). The scope of work in the contract envisages

design, engineering, manufacture, supply and erection & commissioning of steam


4/13



generator and steam turbine generator along with associated auxiliaries and

controls and instrumentation. We maintain our Neutral view on the stock.

Result preview

MphasiS is slated to announce its 2QFY2012 results. We expect the company to

record revenue of US$275mn, up 3% qoq. In INR terms, revenue is expected to

come in at `1,380cr, up 0.9% qoq. EBITDA margin is expected to increase by

66bp qoq to 19.1%. PAT is expected to come in at `189cr, up 2.2% qoq.

FY2013E 5,904 18.3 811 38.7 14.9 9.7 1.4 4.8 0.9

FY2014E 6,320 17.9 864 41.2 113.7 9.1 1.2 4.0 0.7

Economic and Political News

Fiscal deficit lower at 5.7% in FY2012: CGA Government launches austerity drive, bans creation of new posts Finance Minister axes multiple tax on software made in India

Corporate News

SpiceJet to be the first carrier to import jet fuel directly M&M to spend `5,000cr on capex over the next three years RINL to kick off overseas roadshows for IPO in June Royal Dutch Shell, Reliance Power to set up LNG terminal in AP Telenor in talks for new partner in IndiaSource: Economic Times, Business Standard, Business Line, Financial Express, Mint


5/13

Date Company

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

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 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 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 9.80

China Consumer Price Index (YoY) % Change Apr-12 3.40 3.20

June 10, 2012 China Exports YoY% % Change Apr-12 4.90 7.50

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) --

June 14, 2012 US Consumer price index (mom) % Change Apr-12 -- --

Euro Zone Euro-Zone CPI (YoY) % Apr-12 2.60 --

India

Monthly Wholesale Prices

YoY% % Change Apr-12 7.23 --

June 15, 2012 US Industrial Production % Apr-12 1.09 --

June 18, 2012 India RBI Repo rate % - 8.00 --

India RBI Cash Reserve ratio % - 4.75 --



June 01, 2012

Market Outlook


6/13

Market StrategyJune 01, 2012


Macro watch

Exhibit 1:Quarterly GDP 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

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

(%)


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


7/13

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 124 - 2,419 1,432 1,647 14.7 14.7 7.0 8.0 17.8 15.6 3.8 3.2 22.8 22.3 1.7 1.5

United Phosphorus Buy 111 183 5,107 8,191 8,764 16.5 16.5 17.1 18.3 6.5 6.1 1.1 0.9 17.5 16.2 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Accumulate 301 345 2,568 2,691 3,032 15.6 15.5 29.4 32.8 10.2 9.2 2.4 2.0 26.5 23.6 0.9 0.8

Apollo Tyres Buy 87 100 4,360 13,699 15,184 10.5 10.2 12.1 13.3 7.2 6.5 1.3 1.1 19.7 18.4 0.5 0.4

Ashok Leyland Buy 25 33 6,652 14,798 16,687 9.6 9.6 2.4 3.0 10.3 8.4 2.1 1.8 14.8 16.5 0.5 0.4

Automotive Axle Buy 445 514 673 1,211 1,387 12.1 11.7 50.3 57.1 8.9 7.8 2.2 1.8 27.8 25.7 0.6 0.5Bajaj Auto Buy 1,513 1,835 43,781 22,118 24,889 19.0 18.6 115.7 126.5 13.1 12.0 5.2 4.2 45.0 38.9 1.6 1.3

Bharat Forge Buy 312 372 7,268 7,173 7,998 16.3 16.5 22.3 26.6 14.0 11.8 2.7 2.3 21.0 21.0 1.1 0.9

Bosch India Accumulate 8,683 9,429 27,264 9,390 10,716 19.5 19.1 420.2 471.4 20.7 18.4 4.8 4.0 23.3 21.8 2.6 2.2

CEAT Buy 93 164 317 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 119 146 10,081 5,787 6,595 15.5 17.0 7.1 9.0 16.7 13.3 2.9 2.5 18.6 20.3 1.4 1.2

FAG Bearings Neutral 1,525 - 2,535 1,531 1,748 18.8 18.5 118.0 132.8 12.9 11.5 2.8 2.3 24.0 21.9 1.4 1.1

Hero Motocorp Buy 1,837 2,280 36,683 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 0.8

JK Tyre Buy 78 113 322 8,058 9,025 5.4 5.5 24.8 32.2 3.2 2.4 0.3 0.3 11.4 13.2 0.3 0.3

Mahindra and Mahindra Buy 652 793 40,013 34,740 39,263 10.7 11.0 44.9 51.7 14.5 12.6 2.6 2.3 18.9 19.1 0.8 0.7

Maruti Buy 1,106 1,510 31,966 42,683 48,736 7.1 7.5 86.6 100.6 12.8 11.0 1.8 1.6 15.3 15.5 0.5 0.5

Motherson Sumi Buy 163 216 6,330 11,167 12,516 9.5 10.0 11.3 14.4 14.4 11.4 3.1 2.6 23.3 24.7 0.7 0.6

Subros Neutral 33 - 197 1,225 1,393 8.5 8.2 4.2 5.0 7.9 6.6 0.8 0.8 10.3 11.8 0.4 0.3

Tata Motors Buy 233 312 62,150 191,183 210,301 12.8 12.8 39.4 43.6 5.9 5.3 2.1 1.6 40.4 34.3 0.4 0.4

TVS Motor Buy 34 55 1,615 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 734 498 15,560 8,760 10,023 6.4 6.4 18.2 20.7 40.3 35.4 5.4 4.9 14.4 14.6 1.7 1.5BGR Energy Neutral 286 - 2,065 4,170 5,396 11.5 10.4 27.2 30.4 10.5 9.4 1.7 1.6 17.3 17.4 1.1 1.0

BHEL Neutral 212 - 51,877 46,344 46,916 18.3 18.6 23.5 24.1 9.0 8.8 1.8 1.6 21.3 18.9 1.0 1.0

Blue Star Buy 163 221 1,467 3,250 3,551 5.9 5.9 12.4 15.8 13.1 10.3 2.7 2.3 21.2 23.8 0.5 0.4

Crompton Greaves Buy 112 164 7,182 12,936 14,101 9.6 10.0 10.9 11.7 10.3 9.5 1.8 1.6 18.4 17.3 0.6 0.5

Jyoti Structures Buy 39 67 317 2,622 2,801 10.6 11.0 10.9 13.4 3.6 2.9 0.4 0.4 12.7 13.9 0.3 0.3

KEC International Buy 51 73 1,302 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 1,549 2,609 1,745 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 447 - 5,323 5,514 5,559 8.3 8.0 29.7 28.4 15.1 15.8 2.8 2.5 20.2 16.9 0.8 0.8


June 01, 2012

Market Outlook

Stock Watch


8/13



Cement

ACC Neutral 1,140 - 21,407 11,018 12,663 19.9 21.2 70.7 81.2 16.1 14.1 2.8 2.5 18.0 19.0 1.7 1.4

Ambuja Cements Neutral 151 - 23,211 10,035 11,504 23.5 23.8 10.1 10.6 14.9 14.3 2.9 2.6 18.5 19.4 1.9 1.6

India Cements Neutral 75 - 2,316 4,423 4,906 18.2 18.8 9.9 12.7 7.6 6.0 0.6 0.6 8.6 10.5 0.8 0.7

J K Lakshmi Cements Buy 61 79 748 1,938 2,246 19.1 20.1 14.6 16.1 4.2 3.8 0.6 0.5 13.4 13.6 0.5 0.9

Madras Cements Neutral 137 - 3,252 3,444 3,786 25.5 24.9 14.6 17.1 9.4 8.0 1.4 1.2 15.6 16.0 1.6 1.3

Shree Cements Neutral 2,421 - 8,433 5,465 6,249 24.3 23.7 151.5 222.1 16.0 10.9 3.8 3.3 21.6 25.8 1.3 0.9

UltraTech Cement Neutral 1,417 - 38,822 20,116 22,655 21.3 22.5 82.1 97.5 17.3 14.5 2.7 2.4 16.8 17.4 1.9 1.8Construction

Ashoka Buildcon Buy 210 302 1,106 2,014 2,294 22.4 22.4 28.4 30.8 7.4 6.8 1.0 0.9 14.1 13.3 2.3 2.6

Consolidated Co Neutral 14 - 256 2,526 2,792 5.7 6.6 1.8 2.8 7.5 4.9 0.4 0.4 5.5 8.1 0.3 0.3

Hind. Const. Neutral 18 - 1,071 4,239 4,522 11.1 11.8 (1.8) (0.8) (9.8) (22.6) 1.0 1.1 (9.5) (4.7) 1.3 1.2

IRB Infra Buy 113 166 3,744 3,821 4,582 42.3 40.2 15.0 16.9 7.5 6.7 1.1 1.0 16.1 15.8 2.6 2.4

ITNL Buy 182 265 3,532 6,619 7,925 23.8 23.3 22.0 26.7 8.3 6.8 1.2 1.0 14.9 15.9 2.2 2.1

IVRCL Infra Buy 41 79 1,087 5,758 6,860 9.2 9.2 4.7 6.0 8.7 6.8 0.5 0.5 6.0 7.3 0.6 0.6

Jaiprakash Asso. Buy 62 104 13,195 16,017 18,359 24.4 23.5 4.2 5.0 14.8 12.4 1.3 1.2 8.8 9.7 2.1 1.9

Larsen & Toubro Buy 1,172 1,553 71,792 59,559 69,089 12.1 11.5 70.8 76.5 16.6 15.3 2.5 2.2 16.1 15.3 1.3 1.2

Madhucon Proj Buy 41 70 303 2,206 2,502 10.7 10.7 4.6 4.7 8.8 8.8 0.5 0.4 5.2 5.0 0.7 0.7

Nagarjuna Const. Buy 31 76 785 5,790 7,022 9.2 9.5 3.5 5.4 8.8 5.7 0.3 0.3 3.7 5.6 0.7 0.7

Patel Engg. Neutral 86 - 599 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 45 - 1,486 10,592 12,193 8.4 8.4 2.9 4.6 15.4 9.8 0.5 0.5 3.9 3.1 0.6 0.6

Sadbhav Engg. Buy 126 199 1,889 2,989 3,315 10.6 10.6 10.2 11.3 12.4 11.1 2.0 1.7 17.6 16.3 0.8 0.8

Simplex Infra Buy 223 316 1,103 6,732 7,902 9.3 9.6 27.2 35.1 8.2 6.4 0.9 0.8 11.0 12.6 0.5 0.4

FinancialsAllahabad Bank Accumulate 131 147 6,565 7,392 8,542 3.1 3.1 38.3 42.1 3.4 3.1 0.6 0.5 18.4 17.6 - -

Andhra Bank Neutral 108 - 6,069 5,151 5,843 3.2 3.1 22.4 25.7 4.8 4.2 0.7 0.7 15.8 16.0 - -

Axis Bank Buy 972 1,476 40,204 16,157 19,557 3.2 3.2 116.4 139.1 8.4 7.0 1.5 1.3 20.0 20.3 - -

Bank of Baroda Buy 687 925 26,899 15,993 18,918 2.6 2.6 127.3 149.9 5.4 4.6 0.9 0.8 17.8 18.2 - -

Bank of India Accumulate 340 389 19,534 13,558 15,551 2.5 2.4 61.6 70.8 5.5 4.8 0.9 0.8 16.8 16.9 - -

Bank of Maharashtra Accumulate 51 53 2,989 3,580 4,050 3.2 3.2 11.5 13.1 4.4 3.9 0.7 0.6 17.4 17.2 - -

Canara Bank Buy 403 493 17,871 12,061 13,906 2.3 2.3 83.1 92.7 4.9 4.4 0.8 0.7 16.7 16.4 - -

Central Bank Neutral 76 - 5,628 6,838 7,912 2.3 2.4 13.8 20.3 5.6 3.8 0.8 0.7 10.9 14.4 - -


June 01, 2012

Market Outlook

Stock Watch


9/13



Financials

Corporation Bank Accumulate 417 468 6,171 5,203 5,880 2.2 2.1 107.5 112.7 3.9 3.7 0.7 0.6 17.9 16.5 - -

Dena Bank Buy 92 107 3,207 3,149 3,522 2.8 2.8 23.3 26.1 3.9 3.5 0.6 0.6 17.7 17.0 - -

Federal Bank Neutral 419 - 7,158 2,743 3,131 3.4 3.3 49.7 57.4 8.4 7.3 1.1 1.0 14.1 14.6 - -

HDFC Neutral 655 - 96,832 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 506 567 118,806 21,831 27,477 4.3 4.3 28.3 35.5 17.9 14.3 3.4 2.9 20.8 22.1 - -

ICICI Bank Buy 784 1,174 90,144 22,209 26,512 2.8 2.8 67.9 81.1 11.6 9.7 1.4 1.3 14.7 16.0 - -

IDBI Bank Buy 85 113 10,924 8,004 9,589 1.9 2.0 19.9 23.9 4.3 3.6 0.6 0.5 13.8 14.9 - -Indian Bank Accumulate 169 190 7,263 6,312 7,119 3.4 3.3 41.1 43.7 4.1 3.9 0.7 0.6 18.2 16.9 - -

IOB Accumulate 81 92 6,488 7,354 8,283 2.5 2.4 16.3 21.7 5.0 3.8 0.6 0.5 11.5 13.9 - -

J & K Bank Neutral 929 - 4,502 2,535 2,861 3.5 3.4 176.3 184.4 5.3 5.0 1.0 0.8 19.3 17.6 - -

LIC Housing Finance Buy 237 286 11,981 2,108 2,607 2.6 2.6 24.5 30.6 9.7 7.8 1.8 1.5 20.1 21.4 - -

Oriental Bank Accumulate 229 262 6,690 6,431 7,315 2.7 2.6 54.4 63.8 4.2 3.6 0.6 0.5 13.6 14.3 - -

Punjab Natl.Bank Buy 756 1,041 25,628 19,893 23,653 3.1 3.2 153.4 175.2 4.9 4.3 0.9 0.7 18.3 18.1 - -

South Ind.Bank Neutral 24 - 2,741 1,440 1,635 2.7 2.5 3.8 4.1 6.5 5.9 1.2 1.1 19.9 18.6 - -

St Bk of India Buy 2,056 2,469 137,940 68,311 79,649 3.6 3.6 230.4 273.4 8.9 7.5 1.5 1.2 18.2 18.8 - -

Syndicate Bank Buy 93 126 5,568 7,133 8,255 3.0 3.0 25.9 30.0 3.6 3.1 0.6 0.5 16.9 17.1 - -

UCO Bank Neutral 69 - 4,613 5,623 6,380 2.4 2.4 16.9 17.9 4.1 3.9 0.8 0.7 16.5 15.4 - -

Union Bank Buy 202 261 11,099 10,215 11,854 2.9 2.8 42.7 50.3 4.7 4.0 0.8 0.7 17.0 17.5 - -

United Bank Buy 60 78 2,171 3,551 4,128 2.7 2.8 18.8 22.6 3.2 2.7 0.5 0.4 15.5 16.5 - -

Vijaya Bank Neutral 55 - 2,735 2,668 3,001 2.2 2.2 10.6 12.2 5.2 4.5 0.7 0.6 13.3 13.8 - -

Yes Bank Buy 330 450 11,681 3,209 4,144 2.7 2.8 33.9 41.5 9.7 8.0 2.1 1.7 23.1 23.3 - -

FMCG

Asian Paints Neutral 4,035 - 38,700 11,423 13,309 16.3 16.3 125.3 148.4 32.2 27.2 10.9 8.6 38.0 35.4 3.3 2.8Britannia Buy 533 650 6,372 5,906 6,856 6.9 7.0 22.3 28.3 23.9 18.9 9.8 7.3 45.2 44.1 1.1 0.9

Colgate Neutral 1,201 - 16,326 3,007 3,417 21.1 22.1 37.7 42.6 31.8 28.2 37.9 30.6 129.4 120.1 5.3 4.7

Dabur India Neutral 104 - 18,179 5,878 6,799 16.8 17.0 4.2 4.9 25.2 21.2 9.1 7.5 39.3 42.0 3.1 2.7

GlaxoSmith Con* Neutral 2,792 - 11,741 3,124 3,663 17.1 11.6 103.0 123.3 27.1 22.7 8.4 6.7 34.0 32.9 3.4 2.9

Godrej Consumer Neutral 575 - 19,559 5,973 7,000 18.4 18.6 22.8 27.2 25.2 21.2 6.9 5.6 31.3 38.4 3.4 2.9

HUL Neutral 427 - 92,232 25,350 29,309 14.3 14.4 14.1 16.4 30.2 26.0 22.6 17.7 82.7 76.2 3.5 3.0

ITC Accumulate 230 252 180,019 29,638 34,159 35.4 35.8 9.3 10.9 24.6 21.1 8.0 6.5 35.3 33.8 5.8 5.0


June 01, 2012

Market Outlook

Stock Watch


10/13



FMCG

Marico Neutral 175 - 11,282 4,667 5,427 12.8 12.9 6.6 8.1 26.3 21.5 7.1 5.5 30.0 28.8 2.4 2.0

Nestle* Neutral 4,504 - 43,430 8,731 10,539 21.0 21.4 119.3 147.9 37.8 30.5 23.1 15.8 73.0 61.6 5.0 4.1

Tata Global Buy 108 136 6,654 7,011 7,712 9.7 10.0 6.0 7.1 18.1 15.1 1.7 1.6 8.9 10.2 0.8 0.8

IT

HCL Tech Accumulate 504 560 34,926 22,792 25,743 17.4 17.4 37.8 43.0 13.4 11.7 3.0 2.5 22.3 21.3 1.5 1.3

Hexaware Accumulate 119 128 3,532 1,821 2,105 19.0 18.6 9.8 10.7 12.2 11.2 2.8 2.4 23.7 22.5 1.7 1.4

Infosys Accumulate 2,440 2,792 140,104 37,615 42,491 31.1 30.6 158.5 174.5 15.4 14.0 3.5 2.9 22.5 20.8 3.1 2.6Infotech Enterprises Neutral 172 - 1,914 1,758 1,972 17.0 16.6 16.8 18.6 10.2 9.2 1.4 1.2 13.6 13.2 0.7 0.6

KPIT Cummins Neutral 119 - 2,111 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 75 86 8,855 7,097 7,812 16.2 16.0 7.5 8.0 10.0 9.5 1.3 1.2 13.2 12.3 0.8 0.7

Mindtree Neutral 630 - 2,556 2,172 2,450 16.1 15.5 53.9 58.5 11.7 10.8 2.2 1.8 18.9 17.0 1.0 0.8

Mphasis Buy 375 433 7,875 5,904 6,320 18.3 17.9 38.7 41.2 9.7 9.1 1.4 1.3 14.9 13.7 0.9 0.7

NIIT Buy 42 52 699 1,162 1,304 14.8 15.1 7.1 8.8 6.0 4.8 1.0 0.9 16.7 18.4 0.4 0.3

Persistent Accumulate 343 361 1,371 1,109 1,224 23.3 22.4 37.2 40.1 9.2 8.6 1.4 1.2 15.4 14.5 0.9 0.7

TCS Neutral 1,246 - 243,831 57,189 66,329 29.3 28.7 63.2 70.9 19.7 17.6 6.0 4.9 30.5 27.7 4.0 3.4

Tech Mahindra Accumulate 671 725 8,552 5,880 6,314 15.6 15.2 75.9 82.2 8.8 8.2 1.8 1.5 20.1 18.1 1.4 1.2

Wipro Neutral 410 - 100,714 41,918 46,879 19.4 19.9 25.1 28.7 16.3 14.3 3.0 2.6 18.6 18.3 2.1 1.7

Media

D B Corp Buy 196 269 3,584 1,652 1,863 25.7 26.3 13.5 16.1 14.5 12.2 3.2 2.7 24.1 24.4 2.1 1.8

HT Media Buy 110 148 2,595 2,255 2,555 16.3 16.7 9.0 10.6 12.3 10.4 1.5 1.4 13.4 13.8 0.7 0.6

Jagran Prakashan Buy 93 137 2,925 1,499 1,642 27.4 28.8 7.6 9.1 12.1 10.2 4.1 3.6 34.6 37.7 1.9 1.7

PVR Neutral 153 - 396 625 732 17.4 16.9 12.4 15.8 12.3 9.7 2.0 2.1 8.5 9.9 0.8 0.7

Sun TV Network Neutral 239 - 9,417 2,135 2,458 75.2 74.4 20.9 24.0 11.5 10.0 2.7 2.3 26.0 25.1 3.4 2.7Metals & Mining

Bhushan Steel Neutral 441 - 9,364 9,232 13,557 30.8 31.1 48.0 58.6 9.2 7.5 1.2 1.0 14.5 7.5 3.2 2.2

Coal India Accumulate 322 353 203,197 68,841 74,509 25.3 25.3 24.1 26.1 13.4 12.3 3.7 3.0 30.4 26.8 2.1 1.8

Electrosteel Castings Buy 17 27 588 1,984 2,074 10.6 12.0 2.7 3.3 6.3 5.2 0.3 0.1 5.2 6.2 0.4 0.4

Hind. Zinc Buy 117 139 49,521 13,043 14,223 51.8 52.8 14.8 16.6 7.9 7.1 1.5 1.3 21.2 19.9 2.1 1.5

Hindalco Neutral 117 - 22,343 84,652 88,766 9.6 10.5 17.0 18.9 6.9 6.2 0.6 0.6 9.7 9.8 0.5 0.5

JSW Steel Accumulate 629 663 14,034 39,592 44,910 18.0 17.7 74.7 88.9 8.4 7.1 0.8 0.7 10.7 11.6 0.7 0.7

MOIL Accumulate 278 296 4,665 1,007 1,091 56.6 56.9 29.4 31.9 9.5 8.7 1.7 1.5 19.0 18.2 2.4 2.0

Monnet Ispat Buy 400 593 2,571 3,115 3,748 22.1 25.1 59.1 66.8 6.8 6.0 1.0 0.8 15.6 15.3 1.6 1.2


June 01, 2012

Market Outlook

Stock Watch


11/13


12/13



Real Estate

HDIL Buy 67 115 2,824 2,441 3,344 53.0 46.7 21.4 25.4 3.2 2.7 0.3 0.2 8.4 9.1 3.0 2.3

Telecom

Bharti Airtel Neutral 302 - 114,723 80,967 88,684 33.1 33.4 17.9 22.0 16.9 13.7 1.9 1.7 11.5 12.5 2.1 1.8

Idea Cellular Neutral 76 - 25,234 22,558 25,326 26.4 27.5 3.2 4.7 23.7 16.1 1.8 1.6 7.5 10.0 1.6 1.4

Rcom Neutral 65 - 13,334 21,899 23,740 32.7 32.7 4.2 6.7 15.3 9.7 0.3 0.3 2.1 3.2 2.0 1.6

zOthers

Bajaj Electrical Buy 185 245 1,846 3,670 4,384 8.5 8.5 18.3 22.3 10.1 8.3 2.2 1.8 23.9 24.3 0.5 0.4CRISIL Neutral 1,064 - 7,467 982 1,136 34.3 34.3 34.3 40.0 31.0 26.6 14.0 11.2 50.9 46.9 7.2 6.1

Finolex Cables Buy 37 61 562 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 89 124 1,747 2,158 2,406 18.1 18.9 12.4 14.0 7.2 6.4 1.0 0.9 14.0 14.3 0.9 0.8

Greenply Buy 212 298 512 1,800 2,047 11.1 11.6 34.1 49.6 6.2 4.3 1.1 0.9 20.2 23.7 0.5 0.4

Page Industries Neutral 3,089 - 3,445 935 1,168 19.6 19.6 99.7 122.2 31.0 25.3 17.9 14.4 64.2 63.1 3.7 3.0

Sintex Buy 54 129 1,473 4,751 5,189 16.3 16.6 13.6 15.8 4.0 3.4 0.5 0.5 13.1 13.4 0.7 0.5

Siyaram Silk Mills Buy 263 439 246 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 28 - 1,363 5,384 6,443 (1.0) 4.1 (3.4) 2.4 (8.3) 11.8 (11.4) 24.0 - - 0.4 0.4

Taj GVK Buy 60 108 374 300 319 35.8 36.2 7.9 9.1 7.6 6.6 1.0 0.9 13.9 14.4 1.6 1.3

Goodyear Buy 321 372 739 1,571 1,753 7.2 8.6 29.8 42.4 10.7 7.6 2.0 1.7 20.2 24.3 0.3 0.2

HEG Buy 198 242 792 1,746 1,946 16.5 17.7 22.5 32.9 8.8 6.0 0.9 0.8 10.4 14.2 1.1 1.0

Hitachi Buy 117 160 269 857 968 6.9 8.4 10.2 16.0 11.5 7.3 1.4 1.2 12.9 17.8 0.4 0.4

Honeywell Automation Neutral 2,607 - 2,305 1,542 1,739 9.4 10.0 116.1 140.8 22.5 18.5 3.2 2.7 15.5 15.9

Ineos ABS Accumulate 722 777 1,270 900 1,011 10.2 11.5 35.6 45.7 20.3 15.8 2.9 2.5 15.4 17.2

ITD Cementation Accumulate 212 236 244 1,535 1,842 11.1 11.1 27.3 38.3 7.8 5.5 0.6 0.5 7.9 10.2 0.6 0.6

MRF Buy 10,929 13,106 4,635 12,390 14,400 10.4 11.3 1,334.6 1,638.2 8.2 6.7 1.6 1.3 16.5 17.4 0.6 0.5Relaxo Accumulate 433 478 520 1,019 1,208 11.0 10.8 44.9 53.1 9.7 8.2 2.3 1.8 27.2 25.0 0.7 0.6

Tata Sponge Buy 270 420 416 757 875 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 323 462 247 1,612 1,827 9.5 9.8 72.3 92.5 4.5 3.5 1.3 1.0 33.1 32.1 0.4 0.3

Vesuvius India Accumulate 370 413 752 628 716 16.4 16.5 29.8 34.4 12.4 10.8 2.2 1.9 18.8 18.6 1.0 0.8

Abbott India Buy 1,405 1,628 2,986 1,661 1,918 9.7 12.0 60.7 90.4 23.2 15.5 4.8 3.9 22.0 27.3 1.6 1.3

Cera Sanitaryware Ltd Accumulate 252 288 319 385 444 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 219 268 1,769 1,315 1,568 8.6 11.1 6.4 10.9 34.4 20.2 2.9 2.7 8.4 13.9 1.7 1.4

Force Motors Buy 449 680 586 2,346 2,753 6.7 7.0 50.9 61.9 8.8 7.3 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 31, 2012


June 01, 2012

Market Outlook

Stock Watch


13/13

June 01, 2012Market Outlook

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