market outlook, 02-08-2013

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Market OutlookAugust 2, 2013

Dealers DiaryIndian markets are expected to open in the positive tracking the positive opening

trades in the SGX Nifty and most of the other Asian markets.

The US markets after moving sharply higher in early trading continued to perform

well throughout the session on Thursday with traders reacting positively to a batch

of largely upbeat economic data. The strong gains on the day lifted the Dow and

the S&P 500 to new record closing highs, with the S&P 500 closing above 1,700

for the first time. The major averages held on to strong gains going to the close,

finishing the session near their best levels of the day. Meanwhile, the European

stock markets gained ground on Thursday, with banks and miners pacing the

gainers, as investors cheered China's better-than-expected official PMI data, solid

earnings reports and the U.S. Federal Reserve's latest monetary policy decision to

leave its bond-buying program unchanged at $85 billion a month

Meanwhile, Indian shares ended an extremely choppy session modestly lower on

Thursday despite firm Asian and European cues. Investor sentiment took a hit after

Goldman Sachs downgraded its rating on Indian stocks to "underweight" and

Financial Technologies-promoted National Spot Exchange (NSEL) suspendedtrading in all contracts except "e-series" until further notice because of poor

volumes on the exchange following a government order. The NSEL said that it

would announce a revised settlement calendar for settling all pending contacts

after expiry of 15 days.

Markets TodayThe trend deciding level for the day is 19,352/ 5,738 levels. If NIFTY trades above

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

up to 19,534 19,751 / 5,799 5,869 levels. However, if NIFTY trades below

19,352 / 5,738 levels for the first half-an-hour of trade then it may correct up to

19,135 18,954 / 5667 5,606 levels.

Indices S2 S1 PIVOT R1 R2SENSEX 18,954 19,135 19,352 19,534 19,751

NIFTY 5,606 5,667 5,738 5,799 5,869

News Analysis Auto Monthly - July 2013 Lupin receives USFDA nod for Ranexa Extendedrelease tablets Result Review: Idea, RCom, Bank of Baroda, GSK, Tata Global, Union Bank,

JKBank, Ceat Result Preview: Coal India, BHEL, Canara Bank, OBC Bank, Bank of

Maharashtra, KEC InternationalRefer detailed news analysis on the following page

Net Inflows (July 31, 2013)` cr Purch Sales Net MTD YTDFII 5,001 4,824 177 (5,909) 65,397

MFs 957 941 16 (2,169) (14,346)

FII Derivatives (July 31, 2013)` cr Purch Sales Net Open InterestIndex Futures 2,539 2,501 38 11,192

Stock Futures 2,734 2,328 406 25,535

Gainers / LosersGainers Losers

Company Price (`) chg (%) Company Price (`) chg (%)Adani Ports 141 12.2 Financial Tech 192 (64.6)

TV18 Broadcast 19 8.3 IRB Infra 54 (25.5)

Strides Arco 631 7.2 MCX 512 (20.0)

Axis Bank 1,085 4.9 JPPOWER 9 (12.5)

HDFC Bank 632 3.7 Jaiprakash Asso 32 (10.5)

Domestic Indices Chg (%) (Pts) (Close)BSE Sensex (0.1) (29) 19,317

Nifty (0.2) (14) 5,728

MID CAP (1.7) (93) 5,451

SMALL CAP (1.2) (64) 5,247

BSE HC (0.2) (17) 9,057

BSE PSU (2.8) (150) 5,299

BANKEX 1.2 138 11,579

AUTO (1.5) (160) 10,409

METAL (1.8) (126) 6,756

OIL & GAS (2.6) (223) 8,356

BSE IT (0.2) (14) 7,444

Global Indices Chg (%) (Pts) (Close)Dow Jones 0.8 128 15,628NASDAQ 1.4 49 3,676

FTSE 0.9 61 6,682

Nikkei 2.5 337 14,006

Hang Sang 0.9 205 22,089

Straits Times 0.7 21 3,243

Shanghai Com 1.8 35 2,029

Indian ADR Chg (%) (Pts) (Close)INFY 0.3 0.1 $49.8

WIT 2.0 0.2 $8.8IBN 0.9 0.3 $33.1

HDB 2.4 0.8 $33.7

Advances / Declines BSE NSEAdvances 761 396

Declines 1,461 913

Unchanged 133 72

Volumes (` cr)BSE 2,245

NSE 12,992

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Auto Monthly July 2013

Ashok Leyland

Ashok Leyland (AL) reported better-than-expected volumes with total sales posting

a strong growth of 25.4% mom to 8,739 units; albeit on a low base of last month.

However on a yoy basis, the volumes continue to be impacted by the slowdown in

the medium and heavy commercial vehicle segment (down 10.4% yoy) which led

to a 10.7% yoy decline in total volumes. Dost reported subdued volumes with sales

declining by 11.5% yoy to 2,480 units.

Hero MotoCorp

Hero MotoCorp (HMCL) posted a marginal growth of 0.7% yoy (down 2.9% mom)

in total volumes to 487,545 units, which was slightly lower than our expectations.

Total volumes continue to be impacted by the slowdown in motorcycle demand

and higher competition from Honda. Going ahead, the company is hopeful that

better monsoons coupled with improving consumer sentiments will revive thegrowth.

Maruti Suzuki

Maruti Suzuki (MSIL) registered an in-line volume growth of 1.3% yoy (down 1.4%

mom) to 83,299 units. The volume growth was led by a healthy growth of 5.8%

yoy (down 2.4% mom) in the domestic markets. Exports however, continued its

poor run and witnessed a significant decline of 27.3% yoy (up 9.4% mom on a low

base) due to macroeconomic uncertainty in the key export markets. While the sales

in the Mini segment surged 15.8% yoy (7.3% mom) led by the gradual uptick in

demand for petrol cars, the super compact segment registered a strong growth of

33.6% yoy (21.5% mom) despite the competition from Amaze. However the

compact and utility vehicle segments posted an 11.9% (33.9% mom) and 37.5%

yoy (8.7% mom) decline in volumes respectively.

Mahindra and Mahindra

Mahindra & Mahindra (MM) reported weak volumes primarily due to the poor

performance of the automotive segment which has been impacted due to demand

slowdown, rising competition and also due to the increase in excise duty. However,

tractor segment registered a strong growth of 11.8% yoy driven by 14.7% yoy

growth in domestic volumes. The domestic volumes have witnessed a strong

growth YTD in FY20214 led by expectations of normal monsoon and improvedprospects for kharif crop. Total volumes declined sharply by 12.6% yoy (15.6%

mom) to 83,299 units as automotive segment fell by a significant 21.2% yoy (2.6%

mom). The automotive segment registered poor performance across the sub-

segments with the passenger vehicle sales (down 29.4% yoy and 9.9% mom) being

the worst impacted. The four-wheeler pick-up and the three-wheeler sales too

witnessed a decline of 6.5% and 12.8% yoy respectively. Automotive export

volumes plunged 38.8% during the month. Meanwhile, the production cuts

announced by the company at the automotive plants in July will continue in August

as well.

Tata Motors

Tata Motors (TTMT) continued reporting disappointing sales performance as the

domestic commercial (CV) and passenger vehicle (PV) segments maintained its

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downwards trajectory. Total volumes posted a significant decline of 30% yoy (2.4%

mom) to 51,468 units with CV and PV segments registering a sharp decline of

14.2% and 58.8% yoy respectively. Within the CV space, domestic medium and

heavy and light commercial vehicle segments witnessed a decline of 23.7% and

10.1% yoy respectively. While in the PV segment, utility vehicle and passenger cars

witnessed a decline of 55.2% and 59.6% yoy respectively. Exports too registered adecline of 12% yoy during the month.

TVS Motor

TVS Motor (TVSL) reported lower-than-expected volumes as total volumes

registered a decline of 4.7% yoy (6.4% mom) to 153,676 units. The company

continued its sluggish performance in the two-wheeler segment (down 7.1% yoy

and 6.8% mom) on account of poor demand and increased competitive activity in

the motorcycle (down 1.9% mom) and scooter (down 9.8% mom) segments. The

three-wheeler sales on the other hand continued its strong momentum and posted

a growth of 112.2% yoy (3.4% mom) driven by exports. The overall exportsregistered a strong growth of 36.6% yoy (6.8% mom) during the month.

Lupin receives USFDA nod for Ranexa Extendedrelease tablets

Lupin announced that its U.S. subsidiary, Lupin Pharmaceuticals, Inc. (LPI) received

final approval for its Ranolazine Extendedrelease tablets, 500 mg and 1000 mg

from the United States Food and Drugs Administration (FDA). Lupins Ranolazine

Extendedrelease tablets are the ABrated generic equivalent of Gilead Sciences,

Inc.s (Gilead) Ranexa Extendedrelease tablets, 500 mg and 1000 mg strengths.

Ranolazine Extendedrelease tablets are indicated for treatment of chronic angina.

Ranexa tablets, 500 mg and 1000 mg had U.S sales of approximately

US$443.4mn, for the twelve months ending March, 2013 (IMS Health data).Lupin

believes that it is the first applicant to file an ANDA for Ranexa Extended release

tablets 500 mg and 1000 mg strengths and as such will be entitled to 180 days of

marketing exclusivity. The product is expected to contribute around US $30-40mn

to its full year revenues. We maintain our neutral stance on the stock.

Result Review

Idea Cellular (CMP:`167/ TP: Under review)

For 1QFY2014, Idea Cellular (Idea) reported strong set of results, beating our as

well as market expectations on all fronts. Ideas consolidated revenue came in at

`6,539cr, up 7.9% qoq. The mobility segments revenue increased strongly by

8.3% qoq to `6,447cr, riding on healthy customer additions and greater pricing

power after the exit of several smaller competitors from the market. The companys

revenue growth was led by 6.1% qoq increase in realization per minute (RPM) to

~`0.44, aided by reduction in promotional vouchers. Network traffic grew by

2.8% qoq to 147bn min. MOU declined by 2.0% to 398min which came in as a

negative surprise. Ideas subscriber base increased by 3.4mn subscribers during

the quarter with the end of period (EoP) subscriber base standing at 125mn. The

company increased share of VAS revenues to 16.0% from 15.2% in 4QFY2013.

The data volume growth grew by 92.2% yoy to 13.8bn Megabytes usages in

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1QFY2014. The data as a % of service revenue improved by 2.7% in one year;

mobile data now contributes 7.2% to service revenue.

Ideas EBITDA margin increased substantially by ~410bp qoq to 31.8%. The

EBITDA margin increase was led by strong revenue growth along with reduction in

subscriber acquisition & marketing cost which has fallen by ~9.4% qoq in1QFY2014 vs. 4QFY2013. Depreciation charges increased by ~25% qoq to

`1135cr because life of some fixed assets have been revised from 13 years to 10

years. This change resulted in a higher depreciation of ~`180cr in this quarter;

total impact of this change for the entire FY2014 is expected to be ~`450cr. PAT

came in at`463cr, up 50% qoq, led by strong operational performance and qoq

lower tax rate at 36% as against 43% in 4QFY2013.

Ideas 1QFY2014 results underscore declining competitive intensity which should

support strong EBITDA growth for Indian wireless incumbents. Most operators,

including Idea, have been rationalizing pre-paid tariffs as RPM and profitability

improvement remains a key focus area across the industry. With improvingoperational performance, the company still remains surrounded by regulatory

uncertainties with regards one-time spectrum fee, 3G roaming pacts cancellations

and spectrum refarming. The stock is currently under review.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 25,640 26.9 1,322 4.0 8.4 41.8 3.5 9.7 2.6

FY2015E 28,459 27.2 1,632 4.9 9.4 33.8 3.2 8.3 2.3

Reliance Communication (CMP:`131/ TP: Under review)

For 1QFY2014, Reliance Communication (RCom) results came in marginally

below expectations on all fronts. The company registered top-line (including other

income) of`5,315, down ~1.5% qoq. Revenues from wireless business came in at

`4,816cr, up 4% qoq. In tandem with its peer companies, RCom also reported

increase in realization rate per minute (RPM) by 4% qoq to 45.7paise, aided by

tariff hikes and strong focus on paid and profitable minutes. EBITDA margin came

in at 30.2%, down ~70bp qoq. PAT came in at`108cr, down ~65% qoq, as

RCom last quarter had one time gain of `550cr (provision reversal). The stock iscurrently under review.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 22,751 30.9 707 3.4 2.1 38.3 0.8 9.0 2.8

FY2015E 24,628 31.3 1,086 5.3 3.1 25.0 0.8 7.8 2.4

Bank of Baroda - (CMP:`516 / TP: -- / Upside: - -)Bank of Baroda reported moderate operating performance for the quarter,

however, asset quality performance was weak. NII for the bank expectedly grew by

3.3% yoy. Non-interest income grew strongly by 60% yoy, probably aided by

treasury gains. Overall, pre-provisioning profit for the bank grew at moderate

pace of 9% yoy, which was on expected lines. The bank witnessed significant asset

quality deterioration during the quarter, as Gross and Net NPA levels increased

sequentially by 22% and 30%, respectively. The provisioning expenses for the bank

grew by 14% yoy and hence, the bottom-line grew by marginal 3% yoy. Given the

recent macro developments in an overall weak environment, we believe that asset

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quality pressures are unlikely to abate as quickly as was expected earlier. Hence,

we recommend a Neutral recommendation on the stock.Y/E Op. Inc NIM PAT EPS ABV ROA ROE P/E P/ABVMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 16,287 2.2 5,095 120.6 834.7 0.9 15.0 4.3 0.6FY2015E 18,707 2.3 6,111 144.6 951.3 0.9 16.0 3.6 0.5

GSK Consumer (CMP:`4,598/TP:-/Upside:-)

For 2QCY2013 Glaxo Consumers performance was below expectations on

bottom-line front. The top-line rose by 16.9% yoy to`852cr aided by both higher

volumes and better realizations. The price hikes undertaken by the company in

past one year resulted in better realizations. However, OPM fell by 126bp yoy to

13.9% due to increase in advertising and other expenses as a percentage of sales.

Other income rose by 32.7% yoy to `76cr. Bottom-line rose by 12.5% yoy to

`120cr. We maintain our Neutral recommendation on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/salesDec (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)CY2013E 3,617 16.1 514122.2 34.1 37.6 11.7 30.4 4.9

CY2014E 4,259 16.4 625148.7 33.7 30.9 9.4 24.7 4.1

Tata Global (CMP:`147/TP:-/Upside:-)

For 1QFY2014 Tata Globals performance was below expectations on Top-line,

margins, and bottom-line front. The company posted a 4.7% yoy improvement in

its consolidated net sales to`1,796cr, aided by a 7% yoy growth in the top-line ofTea Business. However, coffee business posted a marginal de-growth in net sales

to `469cr. On the operating front consolidated OPM rose 94bp yoy to 10.6%.

While the profits of tea business rose 8% yoy, the coffee business posted a 34% yoy

increase in its profit despite lower sales. The companys adjusted PAT came in

below estimates at `91cr (vs. `83cr in 1QFY2013). We maintain our Neutralrecommendation on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/salesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 8,069 9.8 467 7.6 9.3 19.5 1.8 11.3 1.1

FY2015E 8,957 9.7 514 8.3 9.5 17.7 1.7 10.1 1.0

Union Bank - (CMP:`126/ TP: -/ Upside:- )Union bank reported modest operating performance for the quarter. NII for the

bank grew by 4.8% yoy. Non-interest income grew strongly by 54.0% yoy,

probably boosted by treasury gains. Overall, pre-provisioning profit for the bank

grew by 11.4% yoy. On the asset quality front, the bank witnessed significant asset

quality stress during the quarter, as Gross and Net NPA levels increased

sequentially by around 12.3% and 15.8% respectively. Bank increased Provisioning

expenses by 31.5%, thus limiting in bottom-line growth of 9.5% yoy. Consideringrecent macro developments in a weak economic environment, we believe that

asset quality stress is unlikely to abate as quickly as was anticipated earlier..

Hence, we maintain our Neutral recommendation on the stock.

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Y/E Op. Inc NIM PAT EPS ABV ROA ROE P/E P/ABVMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 11,101 2.6 2,355 39.3 283.6 0.7 14.1 3.2 0.4

FY2015E 12,543 2.6 2,837 47.4 324.3 0.7 15.2 2.7 0.4

JK Bank- (CMP:`1,102/ TP: - / Upside: -)J&K Bank reported healthy operating performance for the quarter. NII for the bank

grew 22.3% yoy. Non-interest income marginally declined by 1.2% yoy. Overall,

pre-provisioning profit for the bank grew by 15.9% yoy. On the asset quality front,

the bank reported moderate performance, as Gross and Net NPA levels increased

sequentially by 3.4% and 1.5% respectively. Provisioning expenses declined by

28.1% yoy. Overall, bottom-line grew at a healthy pace of 25.1% yoy. At CMP, the

stock is trading at 0.8x FY2015E ABV. We maintain our Neutral recommendationon the stock.Y/E Op. Inc NIM PAT EPS ABV ROA ROE P/E P/ABVMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 3,101 3.6 1,045 215.51,167.6 1.4 19.9 5.1 0.9

FY2015E 3,427 3.6 1,019 210.21,314.9 1.2 16.8 5.2 0.8

Ceat (CMP:`118/ TP:`170/ Upside: 43%)Ceat reported extremely strong results for 1QFY2014 which were better than our

expectations driven by significant expansion (up 115bp sequentially to 11.8%) in

operating margins.

For 1QFY2014, standalone top-line reported a better-than-expected growth of

7.8% yoy to `1,280cr despite the sluggish demand environment in the domestic

markets. The top-line was driven by a strong volume growth of 10.7% led by a

volume growth of 28.2% yoy in the OEM segment on the back of the new

partnerships with Royal Enfield, Volvo-Eicher and Bajaj Auto. Export volumes too

registered a strong growth of 10.7% yoy; however, replacement segment grew

modestly by 5.2% yoy during the quarter. Net average realization declined by

2.7% yoy on account of adverse product-mix (higher OEM share) and also due to

price cuts undertaken during the quarter. Operating profit, however, surged 43.5%

yoy (8.2% qoq) to`151cr driven by 293bp yoy expansion in operating margins led

by 12.5% yoy decline in natural rubber prices. The raw-material expense as a

percentage of sales fell 570bp yoy (187bp qoq) during the quarter. Nevertheless,

other expenditure witnessed a sharp jump of 27.5% yoy (5.7% qoq), probably due

to increased marketing spends, which arrested further margin expansion in our

view. Led by strong operating performance, net profit increased 126.8% yoy to

`58cr ahead of our expectation of `38cr. On a sequential though, it declined by

4.1% primarily due to higher tax outgo. Tax rate stood at 33.1% as against 22.4%

sequentially.

We retain our positive view on Ceat and believe that the company will continue to

benefit from the softening of commodity prices. However a slowdown in demand

remains a concern as the replacement demand has not picked up as anticipated.

Nonetheless, at`118, the stock is trading at attractive valuations of 2.4x FY2015E

earnings. We maintain our Buy rating on the stock with a target price of `170.

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Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 5,325 8.4 140 40.8 17.3 2.9 0.5 2.2 0.2

FY2015E 5,974 8.3 166 48.5 17.6 2.4 0.4 1.8 0.1

Result Preview

Coal India (CMP:`270, TP: `345, Upside: 28%)

Coal India is slated to report its 1QFY2014 results on Saturday. We expect net

sales to increase by 7.4% yoy to `17,719cr mainly on account of higher volumes

and EBITDA margin is expected to contract by 280bp yoy to 32.7% due to higher

costs. Net profit is expected to increase by 1.5% yoy to`4,524cr. We maintain ourBuy view on the stock with a target price of `345.Y/E Sales OPM PAT EPS ROE P/E P/BVEV/EBITDAEV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 74,110 31.1 17,550 27.8 36.1 9.7 2.6 4.1 1.3

FY2015E 76,377 30.2 17,434 27.6 32.6 9.8 2.2 3.7 1.1

BHEL (CMP:`151/ TP: -/Upside: %)

BHEL is slated to announce its 1QFY2014 results on Saturday. Top-line is expected

to decline by 3.0% yoy to `8,186cr in 1QFY2014. On the EBITDA front, the

company's margin is likely to expand by 25bp yoy to 14.5%. Consequently, PAT is

expected to decline by 12.7% yoy to `804cr. We maintain our Neutralrecommendation on the stock as we expect tepid order inflow to continue for thenext few quarters.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 44,054 16.8 5,043 20.6 23.5 7.5 1.6 4.3 0.7

FY2015E 39,326 15.1 3,936 16.1 16.1 9.6 1.5 5.1 0.8

Canara Bank - (CMP:`258 / TP: - / Upside: -)Canara Bank is scheduled to announce its 1QFY2014 results tomorrow. We expect

the bank to report healthy NII growth of 14.8% yoy to `2,116cr. Non-interest

income is expected to grow by 31.9% to`

914cr, aided primarily by trading gains.Operating expenses are expected to grow by 13.7% yoy to`1,299cr, which would

result in healthy operating profit growth of 24.2% yoy at `1,730cr. On back of

70.8% yoy higher provisioning at `715cr, we expect the bank to report earnings

de-growth of 3.1% yoy to`751cr. Given the recent macro developments amidst an

overall weak macro-economic environment, we believe that the asset quality

pressures for the banking are unlikely to abate as quickly as was expected earlier.

Overall, we have a cautious view on the sector. Hence, we maintain our Neutralrecommendation on the stock.Y/E Op. Inc NIM PAT EPS ABV ROA ROE P/E P/ABVMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 12,045 2.1 3,400 76.7 534.8 0.8 14.1 3.6 0.5

FY2015E 13,495 2.2 3,826 86.4 603.8 0.8 14.2 3.2 0.4

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Oriental Bank of Commerce (CMP:`144/ TP:155/ Upside: 8.3%)Oriental Bank of Commerce is scheduled to announce its 1QFY2014 results

tomorrow. We expect the bank to report moderate growth of 10.7% yoy in Net

Interest Income (NII) to `1,247cr. Non-interest income is expected to decline by

19.0% yoy to`

331cr. Operating expenses are expected to increase by 7.0% yoy to`683cr. Provisioning expenses are expected to increase by 37.4% yoy to`456cr.

Hence Net profit is expected to de-grow by 17.0% to`325cr.At the CMP, the stock

is trading at 0.3x FY2015E ABV. We maintain our Accumulate recommendation onthe stock.Y/E Op. Inc NIM PAT EPS ABV ROA ROE P/E P/ABVMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 6,790 2.6 1,625 55.7 429.8 0.8 12.8 2.6 0.3

FY2015E 7,676 2.7 1,817 62.3 478.0 0.8 12.9 2.3 0.3

Bank of Maharashtra- (CMP:`42/ TP: - / Upside: -)Bank of Maharashtra is scheduled to announce its 1QFY2014 results today. We

expect the bank to report a healthy NII growth of 32.7% yoy to `864cr. Non-

interest income is expected to de-grow by 6.4% yoy to`167cr. Operating expenses

are expected to increase by 21.9% yoy to `475cr, while provisioning expenses are

expected to decrease by 22.9% yoy to `243cr on account of high base in

1QFY2013. Overall, the bank is expected to report strong earnings growth of

47.1% yoy to `207cr. At CMP, the stock is trading at 0.5x FY2015E ABV. Wemaintain our Neutral recommendation on the stock.Y/E Op. Inc NIM PAT EPS ABV ROA ROE P/E P/ABVMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 4,291 3.0 856 12.1 80.0 0.7 16.2 3.5 0.5

FY2015E 4,724 3.0 908 12.9 89.9 0.6 15.3 3.2 0.5

KEC International (CMP:`27/ TP:`40/Upside: 47%)

For 1QFY2014, KEC International (KEC) is expected to register a healthy top-line

growth of 11.6% yoy to`1,522cr on back of strong execution of its robust order

book. However, on the EBITDA front, the company's margin is expected to contract

by ~227bp yoy to 5.3% on account of execution of few low margin orders inrelatively new segments. Consequently, we expect PAT to decline sharply to`11cr

on account of margin pressure and elevated interest costs. We recommend Buy onthe stock with a target price of `40.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 7,709 6.7 156 6.1 20.2 4.6 0.6 4.1 0.3

FY2015E 8,399 7.2 219 8.5 23.0 3.3 0.5 3.4 0.2

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Quarterly Bloomberg Consensus Estimate

Power Finance Corporation (02/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net profit 1,256 972 29.2 1,294 (2.9)

Siemens India (02/08/2013)Particulars (` cr) 3QSY13E 3QSY12 y-o-y (%) 2QSY13 q-o-q (%)Net sales 2,875 2,976 (3.4) 2,908 (1.2)

EBITDA 175 118 48.0 88 98.4

EBITDA margin (%) 6.1 4.0 3.0

Net profit 84 36 133.5 30 180.2

BHEL (03/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 7,992 8,326 (4.0) 18,850 (57.6)

EBITDA 1,056 1,571 (32.8) 4,651 (77.3)

EBITDA margin (%) 13.2 18.9 24.7

Net profit 780 921 (15.3) 3,238 (75.9)

Canara Bank (03/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net profit 798 775 3.0 725 10.1

Coal India Consolidated (03/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 17,044 16,500 3.3 19,905 (14.4)EBITDA 4,405 4,815 (8.5) 7,490 (41.2)

EBITDA margin (%) 25.8 29.2 37.6

Net profit 4,236 4,469 (5.2) 5,414 (21.8)

Divi's Laboratories (03/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 543 468 16.0 650 (16.5)

EBITDA 204 192 6.3 252 (19.0)

EBITDA margin (%) 37.6 41.0 38.8

Net profit 153 167 (8.4) 182 (15.9)

Godrej Consumers Consolidated (03/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 1,736 1,388 25.1 1,716 1.2

EBITDA 260 199 30.7 279 (6.8)

EBITDA margin (%) 15.0 14.3 16.3

Net profit 173 130 33.1 334 (48.2)

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Grasim Industries Consolidated (03/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 6,652 6,793 (2.1) 7,553 (11.9)

EBITDA 1,296 1,767 (26.7) 1,990 (34.9)

EBITDA margin (%) 19.5 26.0 26.3

Net profit 560 718 (22.0) 818 (31.5)

Tata Chemical Consolidated (05/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 3,164 3,021 4.7 3,362 (5.9)

EBITDA 516 495 4.2 471 9.6

EBITDA margin (%) 16.3 16.4 14.0

Net profit 174 108 61.1(188)

(192.6)

Economic and Political News

States should bear power subsidy burden: Scindia Infra sectors grow at snail's pace in June, may impact IIP Manufacturing growth almost stagnant in July Govt may go ahead with 5% stake sale in CIL this month: Coal Min Planning Commission may call separate NDC on coal linkage problemCorporate News

Life insurers want service tax to be back at 1.5% Claris Life completes transfer of infusion business to JV Tea production up by 4% in June on higher output from WB M&M to stop production for up to 6 days in forthcoming months Centre keen to set up textile park in Nagpur: Rao 'Mandatory recall' to levy strict penalties on auto makers

Source: Economic Times, Business Standard, Business Line, Financial Express, Mint

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Date Company

August 02, 2013 Siemens, Power Fin.Corpn., Sun TV Network, Suzlon Energy, Bank of Maharashtra

August 03, 2013Coal India, BHEL, Grasim Inds, Canara Bank, Godrej Consumer, Divi's Lab., Oriental Bank, PTC India, GodawariIspat

August 04, 2013

August 05, 2013 Tata Chemicals, LMW, Graphite India, GIPCL, SpiceJetAugust 06, 2013 Tata Power Co., Bosch India, Crompton Greaves, Unitech

August 07, 2013NMDC, Tata Motors, Ranbaxy, Lupin, GSK Pharma, Cadila Healthcare, Gujarat Gas, Apollo Tyres, Nagarjuna Const.,Alembic Pharma

August 08, 2013 Adani Enterp., Rural Elec.Corp., Bharat Forge, IRB Infra, ITNL, Page Industries, Prakash Industries, ITD Cementation

August 09, 2013 Sun Pharma, ABB, Aurobindo Pharma, TVS Motor, Finolex Cables, Goodyear

August 10, 2013 Sarda Energy

August 11, 2013

August 12, 2013 ONGC, HPCL, Marico, Indraprasth Gas, Britannia, India Cements, Jyothy Laboratories

August 13, 2013 IOC, M&M, Tata Steel, Hindalco, BPCL, GMR Infra., GSPL

August 14, 2013 SAIL, Nalco, LIC Housing Fin., Amara Raja Batteries, Simplex Infra

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Time Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

August 2, 2013 6:00PM US Change in Nonfarm payrolls Thousands Jul 195.00 185.00

6:00PM US Unnemployment rate % Jul 7.60 7.50

August 5, 2013 1:25PM Germany PMI Services Value Jul F 52.50 --

August 6, 2013 2:00PM UK Industrial Production (YoY) % Change Jun (2.30) --

August 8, 2013 4:29PM China Exports YoY% % Change Jul (3.10) 1.00

August 9, 2013 7:00AM China Consumer Price Index (YoY) % Change Jul 2.70 2.80

11:00AM China Industrial Production (YoY) % Change Jul 8.90 8.90

August 12, 2013 4:29PM India Imports YoY% % Change Jul (0.37) --

4:29PM India Exports YoY% % Change Jul (4.60) --

5:30PM India Industrial Production YoY % Change Jun (1.60) --

August 13, 2013 2:00PM UK CPI (YoY) % Change Jul 2.90 --

August 14, 2013 2:00PM UK Jobless claims change % Change Jul (21.20) --

11:30AM Germany GDP nsa (YoY) % Change 2Q P (1.40) --

12:00PM India Monthly Wholesale Prices YoY% % Change Jul 4.86 --

2:30PM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 2Q A (0.30) --

6:00PM US Producer Price Index (mom) % Change Jul 0.80 --

August 15, 2013 6:00PM US Consumer price index (mom) % Change Jul 0.50 --

6:45PM US Industrial Production % Jul 0.31 --

August 16, 2013 6:00PM US Housing Starts Thousands Jul 836.00 --

6:00PM US Building permits Thousands Jul 918.00 --

2:30PM Euro Zone Euro-Zone CPI (YoY) % Jul F 1.60 --

August 21, 2013 7:30PM US Existing home sales Million Jul 5.08 --

August 23, 2013 7:30PM Euro ZoneEuro-Zone Consumer Confidence Value Aug A (17.40) --

7:30PM US New home sales Thousands Jul 497.00 --

2:00PM UK GDP (YoY) % Change 2Q P 1.40 --


August 02, 2013

Market Outlook

8/22/2019 Market Outlook, 02-08-2013

12/20



Macro watch

Exhibit 1:Q uarterly G D P trends

Source: CSO, Angel Research

Exhibit 2:IIP trends

Source: MOSPI, Angel Research

Exhibit 3:M onthly WPI inflation trends

Source: MOSPI, Angel Research

Exhibit 4:M a nufacturing a nd services PM I

Source: Ma rket, Angel Research; N ote: Level above 50 ind icates expansion

Exhibit 5:Expo rts an d impo rts growth trends


Exhibit 6:Key policy rates

Source: RBI, Angel Research

9.3

7.7

11.4

9.5

8.69.2

9.9

7.5

6.56.0

5.1 5.4 5.24.7 4.8

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

(%)

(2.0)

(0.1)

2.0

(0.7)

8.4

(1.0) (0.6)

2.5

0.6

3.4

1.9

(1.6)(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

Jun-1

2

Jul-12

Aug-1

2

Sep-1

2

Oc-1

2

No-1

2

Dec-1

2

Jan-1

3

Feb

-13

Mar-13

Apr-13

May-1

3

(%)

8.0 8.17.3 7.2 7.3 7.3 7.3

5.7

4.8 4.7 4.9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Aug-1

2

Sep-1

2

Oc-1

2

No-1

2

Dec-1

2

Jan-1

3

Feb

-13

Mar-13

Apr-13

May-1

3

Jun-1

3

(%)

48.0

50.0

52.0

54.0

56.0

58.0

Mar-12

Apr-12

May-1

2

Jun-1

2

Jul-12

Aug-1

2

Sep-1

2

Oc-1

2

Nov-1

2

Dec-1

2

Jan-1

3

Feb

-13

Mar-13

Apr-13

May-1

3

Mfg. PMI Services PMI

(15.0)

0.0

15.0

Jul-12

Aug-1

2

Sep-1

2

Oc-1

2

No-1

2

Dec-1

2

Jan-1

3

Feb

-13

Mar-13

Apr-13

May-1

3

Jun-1

3

Exports yoy growth Imports yoy growth(%)

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Aug-12

Sep-12

Oc-12

No-12

Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

Ma-13

Jun-13

Jul-13

Repo rate Reverse Repo rate CRR(%)

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13/20

Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)

( ) Price ( ) ( cr ) FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E

Agri / Agri Chemical

Rallis Neutral 136 - 2,636 1,674 1,923 13.7 13.7 6.8 7.6 19.9 17.8 3.7 3.3 20.0 19.6 1.7 1.5

United Phosphorus Buy 125 225 5,524 10,091 11,302 16.5 16.5 19.2 22.5 6.5 5.6 1.0 0.9 17.0 17.2 0.7 0.5

Auto & Auto Ancillary

Amara Raja Batteries Buy 239 285 4,082 3,418 3,892 14.5 14.5 18.5 20.4 12.9 11.7 3.1 2.5 26.6 23.8 1.2 1.0

Apollo Tyres Neutral 65 - 3,271 13,852 15,487 11.4 11.5 12.8 14.9 5.1 4.4 0.8 0.7 17.5 17.3 0.4 0.3

Ashok Leyland Buy 13 22 3,390 13,450 15,853 6.5 8.5 0.4 1.9 33.3 6.8 1.1 1.0 2.3 11.0 0.4 0.3

Automotive Axle# Neutral 215 - 325 834 965 9.3 10.6 17.3 27.1 12.4 7.9 1.2 1.1 9.5 14.0 0.5 0.4Bajaj Auto Accumulate 1,933 2,102 55,930 21,696 25,239 19.2 19.3 119.3 140.2 16.2 13.8 5.7 4.5 38.9 36.6 2.2 1.8

Bharat Forge Neutral 196 - 4,562 6,198 6,793 14.6 14.9 14.5 17.3 13.5 11.3 1.8 1.6 13.6 14.7 0.8 0.7

Bosch India* Neutral 8,810 - 27,662 9,821 11,394 17.0 17.3 373.5 438.7 23.6 20.1 4.2 3.6 18.0 17.9 2.5 2.1

CEAT Buy 118 170 405 5,325 5,974 8.4 8.3 40.8 48.5 2.9 2.4 0.5 0.4 17.3 17.6 0.2 0.2

Exide Industries Buy 121 148 10,306 6,899 7,873 14.7 14.7 7.9 9.0 15.3 13.4 2.6 2.3 18.3 18.0 1.2 1.0

FAG Bearings* Neutral 1,260 - 2,094 1,336 1,572 13.8 16.0 75.6 102.4 16.7 12.3 2.1 1.8 13.4 15.8 1.3 1.1

Hero Motocorp Accumulate 1,811 2,048 36,160 25,562 28,297 14.5 14.4 111.2 146.3 16.3 12.4 6.0 4.6 40.1 42.1 1.2 1.0

JK Tyre Buy 91 154 374 7,972 8,754 7.1 7.1 37.5 44.0 2.4 2.1 0.4 0.3 16.4 16.6 0.3 0.3

Mahindra and Mahindra Buy 872 1,103 5 3,694 45,254 51,197 11.4 11.7 61.2 70.2 14.3 12.4 3.0 2.5 22.7 21.9 0.9 0.8

Maruti Buy 1,340 1,648 40,482 45,862 52,647 11.2 11.1 94.6 109.9 14.2 12.2 1.9 1.7 14.4 14.6 0.7 0.6

Motherson Sumi Buy 204 242 12,016 28,442 31,914 8.4 8.7 13.0 16.1 15.7 12.7 4.1 3.2 29.4 28.6 0.5 0.5

Subros Buy 19 23 116 1,230 1,398 10.5 10.5 2.3 3.8 8.3 5.1 0.4 0.4 4.8 7.6 0.3 0.3

Tata Motors Buy 289 347 77,899 215,016 237,404 13.3 13.6 36.2 41.5 8.0 7.0 1.8 1.5 24.6 23.2 0.4 0.4

TVS Motor Accumulate 31 35 1,456 7,715 8,584 6.0 6.1 5.0 5.8 6.2 5.3 1.1 0.9 18.1 18.5 0.1 0.1

Capital Goods

ABB* Reduce 492 461 10,435 8,073 9,052 5.5 6.9 11.5 16.9 42.7 29.1 3.9 3.7 9.3 13.1 1.3 1.1BGR Energy Neutral 80 - 575 3,756 4,569 11.4 9.7 21.7 24.1 3.7 3.3 0.4 0.4 22.3 20.3 0.5 0.4

BHEL Neutral 151 - 36,873 44,054 39,326 16.8 15.1 20.6 16.1 7.3 9.4 1.6 1.4 23.5 16.1 0.7 0.8

Blue Star Buy 150 208 1,349 2,941 3,099 3.4 4.2 6.0 9.3 25.1 16.2 3.1 2.7 12.9 18.0 0.6 0.5

Crompton Greaves Buy 83 117 5,331 13,446 15,272 6.7 7.6 6.6 8.9 12.5 9.4 1.4 1.3 11.4 14.0 0.5 0.5

Jyoti Structures Neutral 16 - 131 3,312 3,555 9.0 9.0 4.5 6.5 3.5 2.5 0.2 0.2 5.6 7.7 0.3 0.3

KEC International Buy 27 40 701 7,709 8,399 6.7 7.2 6.1 8.5 4.5 3.2 0.6 0.5 20.2 23.0 0.3 0.2

Thermax Neutral 588 - 7,009 5,832 6,397 9.1 9.6 28.8 32.9 20.4 17.9 3.3 2.9 17.2 17.3 1.2 1.0

Cement

ACC Buy 1,148 1,361 21,557 11,820 13,254 19.3 20.9 74.9 93.1 15.3 12.3 2.7 2.4 18.1 20.3 1.5 1.3


Market Outlook

Stock Watch

August 02, 2013

8/22/2019 Market Outlook, 02-08-2013

14/20



Cement

Ambuja Cements Neutral 167 - 25,858 10,171 11,762 23.5 24.6 10.2 12.2 16.4 13.7 2.7 2.5 17.1 18.7 2.0 1.6

India Cements Neutral 49 - 1,507 4,929 5,434 17.4 17.1 8.9 10.9 5.5 4.5 0.4 0.4 7.7 9.1 0.7 0.6

J K Lakshmi Cement Buy 57 100 672 2,256 2,709 20.2 22.2 17.0 20.4 3.4 2.8 0.5 0.4 14.8 15.4 0.3 0.8

Madras Cements Neutral 155 - 3,691 4,234 4,788 23.9 24.0 18.5 22.8 8.4 6.8 1.3 1.2 17.2 18.2 1.2 1.0

Shree Cement^ Neutral 4,280 - 14,909 6,607 7,520 27.5 26.7 322.8 374.3 13.3 11.4 3.3 2.6 27.8 25.6 1.6 1.2

UltraTech Cement Neutral 1,818 - 49,860 21,947 25,049 23.8 23.8 106.1 119.8 17.1 15.2 2.8 2.5 17.7 17.3 2.3 2.0

ConstructionAshoka Buildcon Buy 50 84 792 1,928 2,234 21.0 21.5 6.0 7.4 8.4 6.8 0.8 0.7 10.5 10.8 1.8 1.8

Consolidated Co Neutral 8 - 140 1,715 1,824 2.4 6.2 (2.9) (0.4) (2.6) (21.1) 0.3 0.3 0.5 0.5

IRB Infra Buy 54 157 1,800 3,997 4,312 45.5 46.4 15.7 16.6 3.5 3.3 0.5 0.5 15.2 14.5 2.9 3.2

ITNL Buy 113 230 2,186 7,444 8,041 27.4 28.9 29.8 32.1 3.8 3.5 0.5 0.5 14.9 14.2 2.4 2.4

IVRCL Infra Buy 11 29 350 5,673 5,892 8.1 8.4 1.4 1.8 7.9 6.2 0.2 0.2 2.0 2.6 0.5 0.5

Jaiprakash Asso. Buy 32 53 7,201 12,946 14,897 24.7 25.6 1.2 2.7 26.4 12.1 0.5 0.5 2.0 4.3 2.4 2.2

Larsen & Toubro Buy 844 1,128 78,088 68,946 78,040 10.0 10.0 49.0 55.2 17.2 15.3 2.5 2.2 14.9 15.3 1.3 1.1

Nagarjuna Const. Buy 21 42 544 6,167 6,945 8.0 8.2 2.7 3.6 7.9 5.8 0.2 0.2 2.7 3.6 0.4 0.4

Punj Lloyd Neutral 24 - 780 12,954 14,740 9.9 9.9 0.5 0.9 46.3 25.2 0.3 0.3 0.6 1.1 0.5 0.5

Sadbhav Engg. Buy 70 139 1,059 2,462 2,731 10.6 10.6 5.9 6.7 11.9 10.5 1.2 1.1 10.2 10.5 0.7 0.7

Simplex Infra Buy 58 131 284 6,308 7,033 9.5 9.6 11.9 18.7 4.8 3.1 0.2 0.2 4.5 6.7 0.5 0.5

Unity Infra Neutral 18 - 136 2,146 2,339 13.7 13.8 11.0 11.5 1.7 1.6 0.2 0.1 9.3 9.0 0.6 0.6

Financials

Allahabad Bank Neutral 69 - 3,435 6,705 7,535 2.5 2.5 27.6 33.2 2.5 2.1 0.4 0.3 12.5 13.6 - -

Andhra Bank Neutral 60 - 3,338 5,180 5,815 2.7 2.7 19.0 22.9 3.1 2.6 0.4 0.4 12.0 13.2 - -

Axis Bank Buy 1,085 1,348 50,873 19,280 22,886 3.3 3.3 130.7 157.1 8.3 6.9 1.3 1.2 17.3 18.1 - -Bank of Baroda Neutral 516 - 21,743 16,287 18,707 2.2 2.3 120.6 144.6 4.3 3.6 0.6 0.5 15.0 16.0 - -

Bank of India Neutral 179 - 10,643 14,482 16,069 2.3 2.2 55.0 62.2 3.3 2.9 0.5 0.4 13.7 13.9 - -

Bank of Maharashtra Neutral 42 - 2,762 4 ,291 4 ,724 3.0 3.0 12.1 12.9 3.5 3.3 0.5 0.5 16.2 15.3 - -

Canara Bank Neutral 258 - 11,423 12,045 13,495 2.1 2.2 76.7 86.4 3.4 3.0 0.5 0.4 14.1 14.2 - -

Central Bank Neutral 57 - 5,970 8,196 9,202 2.4 2.4 6.1 15.9 9.4 3.6 0.7 0.6 5.2 12.8 - -

Corporation Bank Neutral 281 - 4,294 5,554 6,156 2.0 2.0 94.9 104.9 3.0 2.7 0.4 0.4 14.3 14.2 - -

Dena Bank Neutral 49 - 1,731 3,255 3,623 2.3 2.4 22.0 24.9 2.2 2.0 0.3 0.3 14.7 14.7 - -

Federal Bank Neutral 347 - 5,934 2,798 3,250 3.0 3.0 38.1 51.9 9.1 6.7 0.9 0.8 9.8 12.3 - -


Market Outlook

Stock Watch

August 02, 2013

8/22/2019 Market Outlook, 02-08-2013

15/20



Financials

HDFC Accumulate 817 867 126,956 8,679 10,350 3.6 3.6 37.5 44.7 21.8 18.3 4.5 4.1 30.1 30.7 - -

HDFC Bank Buy 632 745 151,031 27,392 33,264 4.6 4.6 36.3 45.1 17.4 14.0 3.5 3.0 21.9 22.8 - -

ICICI Bank Buy 913 1,131 105,377 26,119 30,474 3.1 3.2 86.2 99.5 10.6 9.2 1.4 1.3 15.7 16.2 - -

IDBI Bank Neutral 62 - 8,283 9,518 10,468 2.0 2.0 15.5 22.1 4.0 2.8 0.4 0.4 10.2 13.3 - -

Indian Bank Neutral 76 - 3,277 6,077 6,845 2.9 3.0 35.2 41.0 2.2 1.9 0.3 0.3 14.1 14.8 - -

IOB Neutral 41 - 3,747 7,709 8,645 2.2 2.3 8.2 17.1 4.9 2.4 0.3 0.3 6.0 11.7 - -

J & K Bank Neutral 1,102 - 5,343 3,101 3,427 3.6 3.6 215.5 210.3 5.1 5.2 0.9 0.8 19.9 16.9 - -LIC Housing Finance Neutral 168 - 8,488 2,180 2,732 2.4 2.5 26.3 32.1 6.4 5.2 1.2 1.0 19.0 19.9 - -

Oriental Bank Neutral 144 - 4,187 6,790 7,676 2.6 2.7 55.7 62.3 2.6 2.3 0.3 0.3 12.8 12.9 - -

Punjab Natl.Bank Neutral 544 - 19,225 20,766 23,515 3.4 3.4 135.0 164.8 4.0 3.3 0.6 0.5 14.4 15.7 - -

South Ind.Bank Neutral 21 - 2,841 1,800 2,023 2.7 2.7 3.7 4.2 5.7 5.1 0.9 0.8 16.2 16.2 - -

St Bk of India Buy 1,683 1,979 115,154 66,417 76,734 3.0 3.0 227.4 284.8 7.4 5.9 1.1 0.9 15.4 17.1 - -

Syndicate Bank Neutral 83 - 5,014 7,125 8,188 2.6 2.6 27.4 27.9 3.0 3.0 0.5 0.4 16.2 14.6 - -

UCO Bank Neutral 59 - 4,422 6,736 6,979 2.7 2.6 15.3 15.7 3.8 3.7 0.7 0.6 14.8 13.6 - -

Union Bank Neutral 126 - 7,540 11,101 12,543 2.6 2.6 39.3 47.4 3.2 2.7 0.5 0.4 14.1 15.2 - -

United Bank Neutral 34 - 1,291 3,386 3,884 2.3 2.5 12.4 20.0 2.8 1.7 0.3 0.3 10.0 14.7 - -

Vijaya Bank Neutral 39 - 1,918 2,714 3,046 1.9 2.0 9.2 10.8 4.2 3.6 0.5 0.4 10.7 11.5 - -

Yes Bank Neutral 328 - 11,786 4,417 5,486 2.7 2.8 42.9 49.5 7.6 6.6 1.7 1.4 23.9 22.8 - -

FMCG

Asian Paints Neutral 497 - 47,629 12,332 14,524 16.3 16.1 13.9 16.0 35.8 31.0 11.4 9.0 35.2 32.5 3.8 3.2

Britannia Neutral 702 - 8,403 6,417 7,502 6.1 6.3 21.3 25.5 33.0 27.6 10.7 8.6 35.7 34.6 1.3 1.1

Colgate Neutral 1,324 - 18,003 3,588 4,130 20.5 20.9 44.2 51.8 30.0 25.6 29.2 21.3 108.6 96.2 4.9 4.2

Dabur India Neutral 160 - 27,820 7,183 8,297 16.8 16.9 5.4 6.3 29.8 25.4 10.5 8.3 39.2 36.7 3.9 3.3

GlaxoSmith Con* Neutral 4,598 - 19,337 3,617 4,259 16.1 16.4 122.2 148.7 37.6 30.9 11.7 9.4 34.1 33.7 4.9 4.1

Godrej Consumer Neutral 818 - 27,839 7,801 9,017 16.2 15.9 25.1 29.7 32.5 27.6 7.0 5.8 24.9 24.2 3.7 3.2

HUL Neutral 634 - 137,133 28,415 31,962 13.6 14.1 16.7 18.2 38.0 34.9 36.5 26.5 112.2 88.1 4.7 4.2

ITC Neutral 338 - 267,644 34,294 39,991 36.8 37.0 11.3 13.3 30.0 25.4 9.9 8.0 36.1 34.9 7.5 6.4

Marico Neutral 207 - 13,338 5,273 6,044 14.8 14.9 7.3 8.7 28.5 23.9 5.6 4.6 21.4 21.0 2.6 2.2

Nestle* Neutral 5,236 - 50,478 9,447 10,968 22.1 22.3 127.5 154.1 41.1 34.0 20.5 14.9 57.7 50.7 5.4 4.6

Tata Global Neutral 147 - 9,094 8,069 8,957 9.8 9.7 7.8 8.6 18.8 17.1 2.3 2.2 9.5 9.7 1.1 1.0


Market Outlook

Stock Watch

August 02, 2013

8/22/2019 Market Outlook, 02-08-2013

16/20



IT

HCL Tech^ Reduce 929 870 64,771 29,424 32,837 22.6 22.0 59.5 63.3 15.6 14.7 3.8 3.1 24.6 21.7 2.0 1.7

Hexaware* Accumulate 114 123 3,418 2,213 2,479 21.5 20.5 12.1 12.9 9.4 8.9 2.3 2.0 25.4 23.5 1.4 1.2

Infosys Reduce 2,976 2,820 170,875 47,001 51,196 26.2 26.4 171.3 189.4 17.4 15.7 3.6 3.0 20.4 19.3 3.0 2.6

Infotech Enterprises Accumulate 176 190 1,965 2,052 2,263 17.2 17.6 20.7 22.5 8.5 7.8 1.3 1.1 14.9 14.0 0.6 0.5

KPIT Cummins Buy 125 144 2,407 2,614 2,923 17.2 16.8 13.2 14.4 9.5 8.7 1.7 1.4 18.5 16.7 0.9 0.7

Mindtree Accumulate 964 1,050 4,009 2,768 3,006 19.7 19.9 103.1 105.3 9.4 9.2 2.3 1.8 24.8 20.3 1.2 1.0

Mphasis& Neutral 400 - 8,399 6,372 6,852 18.0 18.2 38.0 43.5 10.5 9.2 1.5 1.3 14.3 14.2 0.8 0.7NIIT Neutral 15 - 249 1,144 1,267 9.0 9.1 4.3 5.4 3.5 2.8 0.4 0.3 10.3 12.0 - (0.1)

Persistent Accumulate 526 595 2,102 1,505 1,677 25.9 26.2 53.6 59.7 9.8 8.8 1.7 1.5 17.7 16.7 1.0 0.8

TCS Accumulate 1,815 2,060 355,275 79,005 91,576 29.7 30.0 88.6 103.1 20.5 17.6 6.5 5.1 31.5 29.2 4.3 3.6

Tech Mahindra Accumulate 1,251 1,390 29,060 8,102 8,709 19.7 19.2 107.5 117.0 11.6 10.7 2.5 2.0 21.2 18.9 3.6 3.3

Wipro Neutral 436 - 107,500 41,659 45,137 21.2 21.4 27.7 29.9 15.8 14.6 3.2 2.8 20.5 19.0 2.1 1.8

Media

D B Corp Buy 249 302 4,557 1,783 1,968 25.2 26.8 14.6 17.2 17.1 14.4 4.4 3.8 23.9 24.2 2.5 2.2

HT Media Buy 99 117 2,328 2,205 2,380 15.1 15.6 8.3 9.3 11.9 10.7 1.5 1.3 11.6 11.6 0.7 0.6

Jagran Prakashan Buy 91 107 3,030 1,664 1,825 20.9 23.0 6.4 7.8 14.2 11.8 2.9 2.6 21.0 23.1 1.9 1.7

PVR Neutral 338 - 1,343 1,359 1,540 17.3 17.4 17.2 21.6 19.6 15.7 2.0 1.8 10.3 12.0 1.4 1.2

Sun TV Network Neutral 408 - 16,075 2,287 2,551 69.7 70.5 20.0 23.3 20.4 17.5 5.1 4.4 26.4 27.3 6.7 5.9

Metals & Mining

Bhushan Steel Neutral 460 - 10,418 13,794 17,088 30.9 33.5 49.3 66.6 9.3 6.9 1.0 0.9 11.3 13.5 2.4 1.9

Coal India Buy 270 345 170,763 72,174 76,311 33.3 28.4 28.4 30.9 9.5 8.8 2.6 2.3 37.6 36.2 1.5 1.4

Electrosteel Castings Buy 10 18 329 1,976 2,017 11.8 12.7 1.3 2.6 8.0 3.9 0.1 - 2.6 5.2 0.5 0.1

GMDC Buy 81 155 2,577 1,920 2,239 53.2 52.9 21.6 25.0 3.8 3.2 0.9 0.7 25.1 23.8 0.9 0.5Hind. Zinc Buy 99 140 41,725 12,389 13,093 48.5 51.7 15.2 17.0 6.5 5.8 1.1 1.0 18.5 18.0 1.2 0.8

Hindalco Neutral 87 - 16,743 89,352 93,672 8.8 9.2 13.4 15.0 6.5 5.8 0.5 0.4 7.3 7.6 0.5 0.5

JSW Steel Neutral 553 - 13,365 47,613 48,385 17.4 18.8 81.8 109.6 6.8 5.0 0.7 0.6 11.1 13.4 0.6 0.5

MOIL Buy 187 248 3,140 1,010 1,046 46.5 47.6 26.8 28.8 7.0 6.5 1.0 0.9 15.4 14.7 0.7 0.5

Monnet Ispat Buy 106 193 678 2,326 2,709 21.4 23.1 33.3 43.1 3.2 2.5 0.3 0.2 8.3 9.9 1.3 1.0

Nalco Neutral 26 - 6,752 7,656 7,988 13.1 13.5 2.6 2.6 10.3 10.0 0.6 0.5 5.5 5.5 0.3 0.3

NMDC Buy 99 140 39,092 10,610 11,400 66.3 64.2 15.6 16.1 6.3 6.1 1.3 1.2 21.3 19.9 1.6 1.4

SAIL Neutral 41 - 17,078 44,060 54,786 9.4 11.5 5.2 7.2 7.9 5.8 0.4 0.4 5.2 6.8 0.6 0.6


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Metals & Mining

Sesa Goa Buy 127 162 11,046 3,817 5,781 12.1 17.7 27.0 29.6 4.7 4.3 0.6 0.5 12.9 12.5 3.7 2.4

Sterlite Inds Buy 75 97 25,289 44,493 45,599 22.4 23.9 16.8 19.2 4.5 3.9 0.5 0.4 10.5 10.9 0.5 0.5

Tata Steel Buy 210 378 20,410 140,917 151,537 9.7 10.8 30.9 47.6 6.8 4.4 0.6 0.6 9.6 13.4 0.5 0.5

Sarda Buy 77 153 275 1,494 1,568 19.1 20.3 31.3 36.5 2.5 2.1 0.3 0.3 11.8 12.4 0.5 0.4

Prakash Industries Buy 30 40 401 2,615 2,776 12.1 12.0 9.8 10.4 3.0 2.9 0.2 0.2 6.5 6.5 0.4 0.4

Godawari Power andIspat

Buy 65 102 213 2,344 2,509 14.9 15.4 38.7 47.0 1.7 1.4 0.2 0.2 12.3 12.9 0.5 0.4

Oil & Gas

Cairn India Buy 290 364 55,326 18,403 17,925 71.9 62.1 62.1 57.4 4.7 5.1 1.0 0.8 22.6 17.8 1.8 1.5

GAIL Neutral 305 - 38,689 49,700 48,822 16.0 16.6 32.9 33.4 9.3 9.1 1.4 1.3 15.9 14.4 0.3 0.2

ONGC Buy 280 387 239,810 170,063 198,461 36.3 38.3 34.7 41.9 8.1 6.7 1.4 1.2 18.3 19.5 1.1 0.8

Reliance Industries Neutral 850 - 274,609 397,546 421,695 8.9 8.7 72.3 76.8 11.8 11.1 1.2 1.1 12.3 11.8 0.7 0.6

Gujarat Gas* Neutral 165 - 2,113 3,707 3,850 11.7 12.4 23.7 25.7 7.0 6.4 1.9 1.7 29.6 28.2 0.4 0.4

Indraprastha Gas Neutral 264 - 3,700 3,700 4,218 23.4 22.8 26.7 30.4 9.9 8.7 2.1 1.7 22.7 21.8 1.1 0.9

Petronet LNG Buy 116 135 8,734 39,449 43,315 5.3 5.9 14.1 16.9 8.3 6.9 1.7 1.4 21.7 21.9 0.3 0.3

Gujarat State PetronetLtd.

Buy 51 68 2,859 1,171 1,287 91.9 91.9 10.1 11.3 5.0 4.5 0.8 0.7 17.3 16.8 1.9 1.5

Pharmaceuticals

Alembic Pharma Neutral 152 - 2,858 1,736 2,008 17.1 18.9 10.7 13.9 14.2 10.9 4.5 3.3 35.0 34.7 1.7 1.4

Aurobindo Pharma Buy 163 271 4,755 6,641 7,637 15.9 15.9 17.3 20.6 9.4 7.9 1.5 1.3 19.5 18.9 1.2 1.0

Aventis* Neutral 2,420 - 5,573 1,682 1,917 15.6 15.6 91.9 101.7 26.3 23.8 3.7 3.7 15.6 17.1 2.8 2.3

Cadila Healthcare Buy 750 929 15,359 7,280 8,640 15.5 15.7 38.3 46.5 19.6 16.1 4.2 3.5 23.5 23.5 2.4 2.0

Cipla Buy 403 477 32,374 9,274 10,796 23.1 23.1 21.0 23.8 19.2 16.9 3.1 2.6 17.2 16.8 3.2 2.7

Dr Reddy's Accumulate 2,282 2,535 38,785 13,377 15,350 20.4 20.1 112.1 126.6 20.4 18.0 4.3 3.6 23.5 21.8 3.0 2.6Dishman Pharma Buy 41 132 332 1,394 1,534 22.5 22.4 14.8 16.6 2.8 2.5 0.3 0.3 10.8 11.0 0.9 0.8

GSK Pharma* Neutral 2,339 - 19,810 2,854 3,145 28.6 28.6 76.6 83.3 30.5 28.1 9.1 8.3 31.1 31.0 6.1 5.4

Indoco Remedies Buy 63 78 581 747 906 15.3 15.3 5.9 7.6 10.7 8.3 1.3 1.1 12.5 14.4 1.0 0.8

Ipca labs Neutral 664 - 8,374 3,246 3,830 20.5 21.7 36.2 44.9 18.3 14.8 4.3 3.4 26.1 25.7 2.7 2.3

Lupin Neutral 872 - 39,029 11,641 13,933 21.3 21.3 34.8 41.8 25.0 20.9 5.9 4.6 26.2 24.8 3.4 2.8

Ranbaxy* Buy 263 384 11,126 11,400 12,060 10.5 12.5 17.5 22.5 15.0 11.7 2.4 2.1 17.0 19.1 0.9 0.8

Sun Pharma Neutral 567 - 117,202 13,509 15,846 41.0 41.0 16.5 19.9 34.4 28.5 6.9 5.7 22.0 22.0 8.1 6.7

Power

GIPCL Buy 60 78 914 1,444 1,482 33.4 33.0 13.7 14.8 4.4 4.1 0.5 0.5 12.3 12.0 0.7 0.5

NTPC Buy 131 163 108,098 76,734 86,680 24.5 24.3 13.4 14.5 9.8 9.0 1.2 1.1 12.8 12.7 2.1 2.0


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Real Estate

DLF Buy 138 236 24,544 8,293 9,622 36.5 36.1 5.7 6.7 24.1 20.5 0.9 0.8 3.7 4.1 5.1 4.2

MLIFE Accumulate 449 483 1,833 888 1,002 27.0 29.9 33.9 42.1 13.2 10.7 1.3 1.2 9.9 11.2 2.7 2.4

Telecom

Bharti Airtel Reduce 344 321 137,391 85,489 94,229 31.9 31.9 10.2 14.6 33.6 23.5 2.4 2.2 7.2 9.4 2.3 2.0

Idea Cellular Neutral 167 - 55,496 25,640 28,459 26.9 27.2 4.0 4.9 41.8 33.8 3.5 3.2 8.4 9.4 2.6 2.3

Rcom Neutral 131 - 27,121 22,751 24,628 30.9 31.3 3.4 5.3 38.3 25.0 0.8 0.8 2.1 3.1 2.8 2.4

OthersAbbott India* Buy 1,383 1,659 2,939 1,863 2,081 11.8 12.4 71.2 83.0 19.4 16.7 3.9 3.3 21.6 21.5 1.3 1.0

Bajaj Electricals Buy 164 237 1,637 3,885 4,472 5.4 7.2 11.0 19.7 15.0 8.3 2.0 1.7 13.5 20.3 0.4 0.4

Cera Sanitaryware Buy 512 613 648 631 797 14.5 13.7 42.6 51.1 12.0 10.0 2.9 2.3 26.5 25.3 1.0 0.8

Cravatex Buy 299 459 77 248 284 6.5 7.3 27.2 38.2 11.0 7.8 1.7 1.4 15.7 18.5 0.5 0.4

Finolex Cables Buy 54 68 821 2,563 2,899 9.8 9.8 10.1 11.3 5.3 4.8 0.8 0.7 14.3 13.8 0.2 0.2

Force Motors Buy 262 349 342 2,304 2,649 3.1 3.6 28.0 43.7 9.4 6.0 0.3 0.3 3.1 4.7 0.1 0.1

Goodyear India* Accumulate 307 345 708 1,458 1,542 8.3 9.0 32.3 37.0 9.5 8.3 1.7 1.5 19.5 19.3 0.3 0.3

Hitachi Buy 106 191 288 1,080 1,199 8.9 9.1 18.3 19.1 5.8 5.5 1.0 0.9 19.2 17.0 0.4 0.3

Honeywell Automation* Neutral 2,395 - 2,118 1,842 2,131 7.7 7.8 111.1 130.9 21.6 18.3 2.7 2.4 13.3 13.9 1.1 0.9

IFB Agro Buy 135 198 122 495 651 12.7 12.9 29.3 39.5 4.6 3.4 0.7 0.6 15.4 17.6 0.4 0.3

ITD Cementation Buy 158 234 182 1,430 1,573 11.1 11.0 19.1 26.9 8.3 5.9 0.4 0.4 5.4 7.1 0.5 0.5

Jyothy Laboratories Buy 160 199 2,653 1,220 1,476 13.3 13.6 5.5 9.0 29.0 17.7 3.3 3.0 12.1 17.7 2.5 2.0

MRF Buy 12,891 16,218 5,467 11,799 12,587 14.1 13.5 1,792.0 1,802.0 7.2 7.2 1.5 1.3 23.5 19.2 0.6 0.5

Page Industries Neutral 4,428 - 4,939 1,057 1,282 19.4 19.6 124.8 153.7 35.5 28.8 17.6 13.0 56.3 51.8 4.8 3.9

Relaxo Footwears Buy 736 981 884 1,196 1,401 11.9 12.6 55.6 75.4 13.3 9.8 3.2 2.4 27.1 28.1 0.9 0.7

Siyaram Silk Mills Buy 196 311 184 1,158 1,322 10.8 11.2 62.1 77.8 3.2 2.5 0.5 0.4 17.2 18.4 0.4 0.3Styrolution ABS India* Buy 366 492 643 1,007 1,108 8.4 8.7 30.3 35.1 12.1 10.4 1.3 1.2 11.7 12.2 0.6 0.6

TAJ GVK Buy 58 108 364 300 319 35.8 36.2 7.9 9.1 7.3 6.4 1.0 0.9 13.9 14.4 1.5 1.3

Tata Sponge Iron Buy 247 371 381 814 849 17.0 17.6 64.6 69.2 3.8 3.6 0.5 0.5 14.5 13.8 0.1 (0.1)

TTK Healthcare Buy 508 632 394 416 481 4.5 6.1 16.2 25.3 31.3 20.1 3.9 3.4 12.6 18.1 0.8 0.7

Tree House Accumulate 259 297 932 153 194 53.0 52.8 12.4 15.6 20.9 16.6 2.5 2.2 11.8 13.1 6.3 4.8

TVS Srichakra Buy 168 230 129 1,591 1,720 6.1 6.4 24.5 38.3 6.9 4.4 0.7 0.7 10.9 15.9 0.3 0.2

United Spirits Neutral 2,391 - 34,744 12,294 14,162 12.0 12.0 42.1 67.7 56.8 35.3 4.0 3.6 9.1 10.7 3.2 2.7

Vesuvius India* Buy 367 439 744 600 638 20.1 19.4 35.7 36.6 10.3 10.0 1.8 1.6 19.4 17.1 1.0 0.9


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Others

HSIL Buy 74 117 489 2,042 2,363 14.6 14.8 12.3 16.5 6.0 4.5 0.5 0.4 7.6 9.4 0.7 0.6

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 01, 2013


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Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com

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