market outlook 180512
TRANSCRIPT
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Market OutlookMay 18, 2012
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Dealers Diary
The domestic markets are expected to open in red tracking negative opening in
most of the Asian markets. Asian markets recovered a bit yesterday as healthy
economic data from the U.S., robust Japanese quarterly growth figures buoyed by
government reconstruction spending and fresh hopes that the Federal Reserve willconsider further policy easing, if necessary, gave investors reasons to cherry-pick
battered stocks, but worries about Greece's condition remained.
U.S markets again declined yesterday due to the release of some weaker than
expected U.S. economic data, including a report from the Philadelphia Federal
Reserve showing an unexpected contraction in regional manufacturing activity in
the month of May. A report from the Conference Board showed an unexpected
drop by its leading economic indicators index to 0.1% in April from 0.3% increase
in March. Also, the initial jobless claims data for last week unexpectedly came in
unchanged at 370,000.
Meanwhile, Indian markets pared early gain on Thursday due to a further slide in
European stocks on fears over Greek banks and fall in rupee to a new record low
against the dollar. Investors today will watch out for jobless claims data of the U.S.
for the last week to be released today.
The trend deciding level for the day is 16,106 / 4,881 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 16,204 16,338 / 4,912 4,953 levels. However, if NIFTY trades below
16,106 / 4,881 levels for the first half-an-hour of trade then it may correct up to
15,972 15,874 / 4,840 4,809 levels.
SENSEX 15,874 15,972 16,106 16,204 16,338
NIFTY 4,809 4,840 4,881 4,912 4,953
News Analysis
4QFY2012 Result Reviews Bajaj Auto, Mahindra Satyam 4QFY2012 Result Previews Coal India, State Bank of India, Tata Steel,
Ashoka BuildconRefer detailed news analysis on the following page
Net Inflows (May 16, 2012)
FII 2,243 2,725 (482) (167) 43,295
MFs 572 591 (19) (248) (6,348)
FII Derivatives (May 17, 2012)
Index Futures 1,214 1,460 (246) 12,416
Stock Futures 1,827 1,457 370 21,236
Gainers / Losers
Dish TV India 61 10.3 Voltas 99 (6.5)
Shriram Trans 502 4.6 Pantaloon Retl 132 (6.0)
CESC 275 4.4 Cummins India 431 (4.7)
Mcleod Russel 277 4.3 Tech Mahindra 607 (4.6)
Ambuja Cements 149 4.2 JUBL FOOD 1,132 (4.0)
BSE Sensex 0.3 40.4 16,070
Nifty 0.3 12.0 4,870
MID CAP 0.0 1.2 5,881
SMALL CAP 0.1 5.4 6,270
BSE HC (0.3) (22.7) 6,624
BSE PSU 0.2 12.1 6,589
BANKEX (0.2) (24.2) 10,543
AUTO (0.8) (78.7) 9,411
METAL 0.4 40.0 10,038
OIL & GAS 0.4 32.8 7,422
BSE IT (0.0) (2.2) 5,511
Dow Jones (1.2) (156.1) 12,442NASDAQ (2.1) (60.4) 2,814
FTSE (1.2) (66.9) 5,338
Nikkei 0.9 75.4 8,877
Hang Seng (0.3) (58.9) 19,201
Straits Times (0.1) (1.9) 2,828
Shanghai Com 1.4 32.7 2,379
INFY (2.1) (0.9) $42.5
WIT (0.6) (0.1) $8.7IBN (1.8) (0.5) $28.4
HDB (2.7) (0.8) $28.7
Advances 1,336 720
Declines 1,383 698
Unchanged 133 77
BSE 1,805
NSE 9,737
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Market OutlookMay 18, 2012
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Result Reviews
Bajaj Auto (CMP: `1,574 / TP: Under Review / Upside: -)
Bajaj Auto (BJAUT) registered lower-than-expected results for 4QFY2012 mainly
on account of lower-than-expected top line. The company's top line grew by 12.2%
yoy (down 6.7% qoq) to `4,651cr, against our expectation of `4,941cr, driven by
7.3% yoy (down 5.4% qoq) growth in volumes and a 3.3% yoy (down 1.4% qoq)
increase in net average realization. Volume performance was led by robust growth
on the exports front, with volumes growing by 25.9% yoy (down 8.8% qoq).
Domestic volume growth continued to remain muted and declined marginally by
0.4% yoy (3.6% qoq) during the quarter.
The company's EBITDA margin stood at 19.8% (up 41bp yoy and flat qoq),
primarily benefitting from the decline in raw-material expenses, which as a
percentage of sales declined by 60bp yoy. As a result, operating profit witnessed
14.6% yoy (down 6.5% qoq) growth to `921cr. Adjusted net profit, however,
declined by 3.8% yoy mainly on account of lower-than-expected top line, higher
depreciation expense (up 44.5% yoy), higher tax-rate (25.4% vs. 15.3% in
4QFY2011) and lower other income (down 10.7% yoy). At the CMP, the stock is
trading at 13x FY2014 earnings.
FY2013E 21,966 19.8 3,232 111.7 43.1 14.1 5.4 8.4 1.7
FY2014E 24,774 19.0 3,494 120.7 37.1 13.0 4.4 7.3 1.4
Mahindra Satyam (CMP: `67 / TP: `89 / Upside: 33.1%)
Mahindra Satyam announced its 4QFY2012 results, which were ahead of our as
well as street expectations on all the fronts. Revenue came in at US$337mn, up
3.7% qoq, mainly led by volume growth. In INR terms, revenue came in at
`1,666cr, down 3.0% qoq due to INR appreciation against USD. Mahindra
Satyam, like other peer companies, witnessed pressure from BFSI clients. The
companys operational performance was ahead of our expectations, with EBITDA
and EBIT margin increasing by 132bp and 107bp qoq to 17.5% and 15.0%,
respectively. This was due to reduction in SG&A expenses. PAT stood tall at 534cr,
up 73.2% qoq, aided by one-time gain of `109cr and tax reversal of `94cr. PAT,adjusted for one-time gain, came in at `425cr, up 38% qoq. Overall, results were
good with healthy operating performance.
FY2013E 7,142 15.4 900 7.6 13.8 8.7 1.2 4.6 0.7
FY2014E 8,042 15.0 972 8.3 13.0 8.1 1.0 3.7 0.5
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Result Previews
Coal India
Coal India is slated to report its 4QFY2012 results. We expect the companys net
sales to increase by 17.1% yoy to `17,672cr mainly on account of coal price hike
taken during February 2011. However, EBITDA margin is expected to contract by
1,623bp yoy to 26.8% in 4QFY2012 on account of higher employee cost
provision. Nevertheless, net profit is expected to decrease by only 5.9% yoy to
`3,958cr, as the decrease in operating profit is expected to be partially offset by
increased interest income.
State Bank of India
State Bank of India is scheduled to announce its 4QFY2012 results today. We
expect the bank to report a strong Net Interest Income (NII) growth of 48.8% on a
yoy basis to `11,990cr (4.6% on a qoq basis) due to sharp dip in NIMs witnessedin 4QFY2011. The non-interest income is expected to decline by 17.8% yoy.
Consequently, the operating income of the bank is expected to grow at a healthy
23.9% yoy. Provisioning expenses are expected to decline by 4.3% yoy due to
higher NPA provisioning in 4QFY2011. The bank is expected to post bottom-line
of `3,549cr as against the low base of `20cr reported in 4QFY2011. At the CMP,
the stock is trading at 1.1x FY2014E ABV before adjusting for subsidiaries (1.0x
post adjustment).
Tata Steel
Tata Steel is slated to report its consolidated 4QFY2012 results. We expect the
companys net sales to decrease by 1.1% yoy to `33,437cr mainly on account of
lower volumes from its European operations, partially offset by higher realizations.
EBITDA is expected to decrease to 42.4% yoy to `2,693cr on account of higher
raw-material cost (mainly in its European operations).
Ashoka Buildcon
For Ashoka Buildcon (ABL), 4QFY2012 numbers are not comparable with4QFY2011 due to change in accounting policy, which was incorporated by the
company in 4QFY2011. On the revenue front, ABL is expected to post a decline of
18.0% yoy on the consolidated revenue front to `494.6cr. On the margin front, we
expect ABL to post OPM of 20.3%. We expect the company to post a 10.0% yoy
decline in its earnings to `34.4cr for the quarter.
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Quarterly Bloomberg Brokers Consensus Estimate
Net sales 17,703 12,692 39 15,349 15
EBITDA 4,404 3,380 30 4,547 (3)EBITDA margin (%) 24.9 26.6 29.6
Net profit 3,829 2,626 46 4,038 (5)
Net profit 3,589 21 - 3,263 10
Net sales 33,584 33,443 0 32,964 2EBITDA 3,215 4,466 (28) 1,717 87
EBITDA margin (%) 9.6 13.4 5.2
Net profit 899 4,176 (78) (603) -
Net sales 753 798 (6) 755 (0)
EBITDA 177 227 (22) 216 (18)
EBITDA margin (%) 23.5 28.4 28.6
Net profit 126 188 (33) 139 (9)
Net profit 785 607 29 1,108 (29)
Net sales 6,153 4,986 23 6,646 (7)
EBITDA 1,515 1,287 18 1,003 51
EBITDA margin (%) 24.6 25.8 15.1Net profit 605 627 (4) 263 130
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Economic and Political News
Exports target set at US$350bn for FY2012-13 Italy keen to bring FDI in fashion, textiles in India Government makes norms stringent for incorporation of firms Government may offer incentives on export of textiles, handloom and leather
products
Corporate News
Bharti Airtel slashes 3G data tariffs by up to 70% Cairn deal boosts miner Vedanta's core profit DLF gets `2,900cr offer for 17 acre plot in Lower ParelSource: Economic Times, Business Standard, Business Line, Financial Express, Mint
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Market StrategyMay 18, 2012
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Macro watch
Exhibit1:QuarterlyGDPtrends
5.8 5.9
7.5
9.8
7.4
9.4
8.5
7.6
8.3
7.8 7.7
6.9
6.1
5.0
6.0
7.0
8.0
9.0
10.0
3QFY09
4QFY09
1QFY10
2QFY10
3QFY10
4QFY10
1QFY11
2QFY11
3QFY11
4QFY11
1QFY12
2QFY12
3QFY12
(%)
Source:
CSO,
Angel
Research
Exhibit2:IIPtrends
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
Exhibit3:MonthlyWPIinflationtrends
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,AngelResearch
Exhibit4:ManufacturingandservicesPMI
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,AngelResearch;Note:Levelabove50indicatesexpansion
Exhibit5:Exportsandimportsgrowthtrends
(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(%)
Source:Bloomberg,AngelResearch
Exhibit6:Keypolicyrates8.00
7.00
4.75
4.00
5.00
6.00
7.00
8.00
9.00
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
Repo rate Reverse Repo rate CRR (%)
Source:RBI,AngelResearch
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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 125 - 2,432 1,432 1,647 14.7 14.7 7.0 8.0 17.9 15.6 3.8 3.2 22.8 22.3 1.7 1.5
United Phosphorus Buy 121 183 5,575 8,191 8,764 16.5 16.5 17.1 18.3 7.1 6.6 1.2 1.0 17.5 16.2 0.8 0.7
Auto & Auto Ancillary
Amara Raja Batteries Buy 274 345 2,338 2,691 3,032 15.6 15.5 29.4 32.8 9.3 8.3 2.2 1.8 26.5 23.6 0.8 0.7
Apollo Tyres Buy 84 100 4,219 13,699 15,184 10.5 10.2 12.1 13.3 6.9 6.3 1.3 1.1 19.7 18.4 0.5 0.4
Ashok Leyland Buy 25 33 6,625 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 Neutral 490 - 740 1,211 1,387 12.1 11.7 50.3 57.1 9.8 8.6 2.5 2.0 27.8 25.7 0.7 0.6Bajaj Auto Buy 1,574 1,811 45,556 21,966 24,774 19.8 19.0 111.7 120.7 14.1 13.0 5.4 4.4 43.1 37.1 1.7 1.4
Bharat Forge Buy 308 372 7,179 7,173 7,998 16.3 16.5 22.3 26.6 13.8 11.6 2.7 2.3 21.0 21.0 1.1 0.9
Bosch India Accumulate 8,893 9,429 27,922 9,390 10,716 19.5 19.1 420.2 471.4 21.2 18.9 4.9 4.1 23.3 21.8 2.7 2.3
CEAT Buy 94 164 323 5,067 5,631 8.0 7.6 39.4 41.0 2.4 2.3 0.4 0.4 18.8 16.5 0.3 0.3
Exide Industries Buy 120 146 10,179 5,787 6,595 15.5 17.0 7.1 9.0 16.8 13.4 3.0 2.5 18.6 20.3 1.4 1.2
FAG Bearings Accumulate 1,511 1,594 2,510 1,531 1,748 18.8 18.5 118.0 132.8 12.8 11.4 2.8 2.3 24.0 21.9 1.4 1.1
Hero Motocorp Buy 1,890 2,280 37,741 26,106 29,296 15.0 15.2 140.3 148.1 13.5 12.8 6.4 4.9 54.8 43.3 1.1 0.9
JK Tyre Buy 80 113 326 8,058 9,025 5.4 5.5 24.8 32.2 3.2 2.5 0.4 0.3 11.4 13.2 0.3 0.3
Mahindra and Mahindra Buy 636 802 39,058 35,095 40,213 10.7 10.5 44.6 48.7 14.3 13.1 2.5 2.2 18.8 18.1 0.8 0.7
Maruti Buy 1,205 1,510 34,814 42,683 48,736 7.1 7.5 86.6 100.6 13.9 12.0 2.0 1.7 15.3 15.5 0.6 0.5
Motherson Sumi Buy 166 216 6,426 11,167 12,516 9.5 10.0 11.3 14.4 14.7 11.5 3.2 2.6 23.3 24.7 0.7 0.6
Subros Neutral 30 - 179 1,225 1,393 8.5 8.2 4.2 5.0 7.1 6.0 0.7 0.7 10.3 11.8 0.4 0.3
Tata Motors Buy 271 328 72,968 191,183 213,150 12.6 12.6 38.7 42.9 7.0 6.3 2.5 1.9 39.8 33.9 0.5 0.4
TVS Motor Buy 33 55 1,570 7,982 8,816 6.4 6.3 5.0 5.6 6.6 6.0 1.2 1.0 18.9 18.2 0.2 0.2
Capital Goods
ABB* Sell 716 498 15,174 8,760 10,023 6.4 6.4 18.2 20.7 39.3 34.5 5.3 4.7 14.4 14.6 1.7 1.5BGR Energy Neutral 284 - 2,048 4,170 5,396 11.5 10.4 27.2 30.4 10.4 9.3 1.7 1.5 17.3 17.4 1.1 1.0
BHEL Neutral 206 - 50,347 46,344 46,916 18.3 18.6 23.5 24.1 8.7 8.5 1.7 1.5 21.3 18.9 1.0 0.9
Blue Star Buy 178 221 1,601 3,250 3,551 5.9 5.9 12.4 15.8 14.3 11.3 2.9 2.5 21.2 23.8 0.6 0.5
Crompton Greaves Buy 113 164 7,226 12,936 14,101 9.6 10.0 10.9 11.7 10.4 9.6 1.8 1.6 18.4 17.3 0.6 0.5
Jyoti Structures Buy 38 67 311 2,622 2,801 10.6 11.0 10.9 13.4 3.5 2.8 0.4 0.4 12.7 13.9 0.3 0.3
KEC International Buy 51 73 1,305 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 1,517 2,609 1,709 2,663 3,130 12.8 12.8 185.0 217.4 8.2 7.0 1.6 1.4 21.2 21.7 0.2 0.1
Thermax Neutral 422 - 5,027 5,514 5,559 8.3 8.0 29.7 28.4 14.2 14.9 2.7 2.4 20.2 16.9 0.8 0.7
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Market Outlook
Stock Watch
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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 1,170 - 21,966 11,018 12,663 19.9 21.2 70.7 81.2 16.6 14.4 2.9 2.6 18.0 19.0 1.7 1.4
Ambuja Cements Neutral 149 - 22,828 10,035 11,504 23.5 23.8 10.1 10.6 14.7 14.1 2.9 2.6 18.5 19.4 1.9 1.5
India Cements Neutral 79 - 2,427 4,423 4,906 18.2 18.8 9.9 12.7 8.0 6.2 0.7 0.6 8.6 10.5 0.8 0.7
J K Lakshmi Cements Buy 63 79 776 1,880 2,201 19.0 22.6 12.2 16.4 5.2 3.9 0.6 0.5 11.9 14.3 0.6 0.9
Madras Cements Neutral 140 - 3,320 3,434 3,777 25.5 26.1 14.1 18.1 9.9 7.7 1.4 1.2 15.2 16.9 1.6 1.3
Shree Cements Neutral 2,598 - 9,052 5,552 6,193 25.7 26.0 130.3 182.0 19.9 14.3 4.1 3.5 19.1 22.3 1.3 1.0
UltraTech Cement Neutral 1,411 - 38,662 20,116 22,655 21.3 22.5 82.1 97.5 17.2 14.5 2.7 2.3 16.8 17.4 1.8 1.8Construction
Ashoka Buildcon Buy 199 302 1,047 2,014 2,294 22.4 22.4 28.4 30.8 7.0 6.5 0.9 0.8 14.1 13.3 2.3 2.6
Consolidated Co Neutral 14 - 262 2,526 2,792 5.7 6.6 1.8 2.8 7.7 5.0 0.4 0.4 5.6 8.2 0.3 0.3
Hind. Const. Neutral 18 - 1,116 4,239 4,522 11.1 11.8 (1.8) (0.8) (10.3) (23.6) 1.1 1.2 (9.5) (4.7) 1.3 1.2
IRB Infra Buy 113 166 3,747 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 163 265 3,172 6,619 7,925 23.8 23.3 22.0 26.7 7.4 6.1 1.0 0.9 14.9 15.9 2.2 2.1
IVRCL Infra Buy 46 79 1,220 5,758 6,860 9.2 9.2 4.7 6.0 9.8 7.6 0.6 0.5 6.0 7.3 0.7 0.6
Jaiprakash Asso. Buy 62 104 13,237 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 1,163 1,553 71,243 59,559 69,089 12.1 11.5 70.8 76.5 16.4 15.2 2.5 2.2 16.1 15.3 1.3 1.2
Madhucon Proj Buy 45 70 330 2,206 2,502 10.7 10.7 4.6 4.7 9.6 9.6 0.5 0.5 5.2 5.0 0.7 0.7
Nagarjuna Const. Buy 32 76 833 5,790 7,022 9.2 9.5 3.5 5.4 9.3 6.0 0.3 0.3 3.7 5.6 0.8 0.7
Patel Engg. Neutral 86 - 601 3,609 3,836 13.1 13.1 14.0 14.6 6.1 5.9 0.4 0.4 6.3 6.1 1.0 1.1
Punj Lloyd Neutral 46 - 1,513 10,592 12,193 8.4 8.4 2.9 4.6 15.7 10.0 0.5 0.5 3.9 3.1 0.6 0.6
Sadbhav Engg. Buy 132 199 1,990 2,989 3,315 10.6 10.6 10.2 11.3 13.0 11.7 2.1 1.8 17.6 16.3 0.9 0.8
Simplex Infra Buy 215 316 1,064 6,732 7,902 9.3 9.6 27.2 35.1 7.9 6.1 0.8 0.7 11.0 12.6 0.5 0.4
FinancialsAllahabad Bank Buy 144 166 7,208 7,392 8,542 3.1 3.1 38.3 42.1 3.8 3.4 0.7 0.6 18.4 17.6 - -
Andhra Bank Neutral 105 - 5,876 5,151 5,843 3.2 3.1 22.4 25.7 4.7 4.1 0.7 0.6 15.8 16.0 - -
Axis Bank Buy 950 1,587 39,310 16,157 19,557 3.2 3.2 116.4 139.1 8.2 6.8 1.5 1.3 20.0 20.3 - -
Bank of Baroda Buy 642 925 25,137 15,993 18,918 2.6 2.6 127.3 149.9 5.0 4.3 0.8 0.7 17.8 18.2 - -
Bank of India Buy 308 411 17,667 13,558 15,551 2.5 2.4 61.6 70.8 5.0 4.4 0.8 0.7 16.8 16.9 - -
Bank of Maharashtra Buy 48 55 2,806 3,580 4,050 3.2 3.2 11.5 13.1 4.1 3.6 0.7 0.6 17.4 17.2 - -
Canara Bank Buy 398 522 17,634 12,061 13,906 2.3 2.3 83.1 92.7 4.8 4.3 0.8 0.7 16.7 16.4 - -
Central Bank Neutral 75 - 5,506 6,838 7,912 2.3 2.4 13.8 20.3 5.4 3.7 0.8 0.7 10.9 14.4 - -
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Market Outlook
Stock Watch
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7/31/2019 Market Outlook 180512
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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 407 486 6,036 5,203 5,880 2.2 2.1 107.5 112.7 3.8 3.6 0.7 0.6 17.9 16.5 - -
Dena Bank Buy 84 111 2,926 3,149 3,522 2.8 2.8 23.3 26.1 3.6 3.2 0.6 0.5 17.7 17.0 - -
Federal Bank Neutral 399 - 6,822 2,743 3,131 3.4 3.3 49.7 57.4 8.0 7.0 1.1 1.0 14.1 14.6 - -
HDFC Accumulate 633 670 93,502 7,393 8,844 3.5 3.4 31.7 37.9 20.0 16.7 4.0 3.5 34.7 31.9 - -
HDFC Bank Accumulate 497 567 116,786 21,831 27,477 4.3 4.3 28.3 35.5 17.6 14.0 3.4 2.9 20.8 22.1 - -
ICICI Bank Buy 787 1,201 90,478 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 87 117 11,090 8,004 9,589 1.9 2.0 19.9 23.9 4.4 3.6 0.6 0.5 13.8 14.9 - -Indian Bank Accumulate 179 197 7,699 6,312 7,119 3.4 3.3 41.1 43.7 4.4 4.1 0.8 0.7 18.2 16.9 - -
IOB Buy 79 96 6,268 7,354 8,283 2.5 2.4 16.3 21.7 4.8 3.6 0.6 0.5 11.5 13.9 - -
J & K Bank Accumulate 859 960 4,163 2,420 2,792 3.5 3.6 178.0 195.8 4.8 4.4 0.9 0.8 19.5 18.6 - -
LIC Housing Finance Buy 242 286 12,203 2,108 2,607 2.6 2.6 24.5 30.6 9.9 7.9 1.8 1.6 20.1 21.4 - -
Oriental Bank Buy 213 274 6,216 6,431 7,315 2.7 2.6 54.4 63.8 3.9 3.3 0.5 0.5 13.6 14.3 - -
Punjab Natl.Bank Buy 719 1,066 24,394 19,893 23,653 3.1 3.2 153.4 175.2 4.7 4.1 0.8 0.7 18.3 18.1 - -
South Ind.Bank Neutral 22 - 2,486 1,399 1,596 2.6 2.5 3.5 3.8 6.2 5.8 1.1 1.0 18.7 17.5 - -
St Bk of India Buy 1,848 2,511 124,016 69,568 81,445 3.7 3.7 220.9 269.8 8.4 6.9 1.4 1.2 18.9 19.1 - -
Syndicate Bank Buy 87 131 5,231 7,133 8,255 3.0 3.0 25.9 30.0 3.4 2.9 0.5 0.5 16.9 17.1 - -
UCO Bank Neutral 65 - 4,101 5,623 6,380 2.4 2.4 16.9 17.9 3.9 3.7 0.7 0.6 16.5 15.4 - -
Union Bank Buy 195 276 10,201 10,215 11,854 2.9 2.8 42.7 50.3 4.6 3.9 0.8 0.6 17.0 17.5 - -
United Bank Buy 56 78 2,027 3,551 4,128 2.7 2.8 18.8 22.6 3.0 2.5 0.5 0.4 15.5 16.5 - -
Vijaya Bank Neutral 52 - 2,582 2,668 3,001 2.2 2.2 10.6 12.2 4.9 4.3 0.7 0.6 13.3 13.8 - -
Yes Bank Buy 303 470 10,718 3,209 4,144 2.7 2.8 33.9 41.5 8.9 7.3 1.9 1.6 23.1 23.3 - -
FMCG
Asian Paints Neutral 3,691 - 35,407 11,423 13,309 16.3 16.3 125.3 148.4 29.5 24.9 10.0 7.9 38.0 35.4 3.0 2.6Britannia Buy 521 650 6,217 5,906 6,856 6.9 7.0 22.3 28.3 23.3 18.4 9.5 7.1 45.2 44.1 1.0 0.9
Colgate Neutral 1,230 - 16,720 3,007 3,417 21.1 22.1 37.7 42.6 32.6 28.9 38.9 31.4 129.4 120.1 5.4 4.8
Dabur India Neutral 104 - 18,196 5,878 6,799 16.8 17.0 4.2 4.9 25.2 21.3 9.1 7.5 39.3 42.0 3.1 2.7
GlaxoSmith Con* Neutral 2,741 - 11,529 3,124 3,663 17.1 11.6 103.0 123.3 26.6 22.2 8.2 6.6 34.0 32.9 3.4 2.8
Godrej Consumer Neutral 549 - 18,679 5,973 7,000 18.4 18.6 22.8 27.2 24.1 20.2 6.6 5.3 31.3 38.4 3.3 2.8
HUL Neutral 429 - 92,621 25,350 29,309 14.3 14.4 14.1 16.4 30.3 26.1 22.7 17.7 82.7 76.2 3.5 3.0
ITC Accumulate 235 252 183,616 28,955 33,595 35.9 35.7 9.2 10.5 25.6 22.4 8.2 6.8 34.8 33.1 6.0 5.2
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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
FMCG
Marico Neutral 176 - 10,825 4,667 5,427 12.8 12.9 6.6 8.1 26.5 21.7 7.1 5.6 30.0 28.8 2.3 2.0
Nestle* Neutral 4,688 - 45,196 8,731 10,539 21.0 21.4 119.3 147.9 39.3 31.7 24.1 16.4 73.0 61.6 5.2 4.2
Tata Global Buy 107 136 6,639 7,011 7,712 9.7 10.0 6.0 7.1 18.1 15.0 1.6 1.6 8.9 10.2 0.8 0.8
IT
HCL Tech Buy 485 560 33,585 22,792 25,743 17.4 17.4 37.8 43.0 12.8 11.3 2.8 2.4 22.3 21.3 1.4 1.2
Hexaware Accumulate 119 128 3,520 1,821 2,105 19.0 18.6 9.8 10.7 12.1 11.1 2.8 2.4 23.7 22.5 1.7 1.4
Infosys Buy 2,371 2,792 136,170 37,615 42,491 31.1 30.6 158.5 174.5 15.0 13.6 3.4 2.8 22.5 20.8 3.0 2.5Infotech Enterprises Accumulate 167 177 1,857 1,758 1,972 17.0 16.6 16.8 18.6 9.9 9.0 1.4 1.2 13.6 13.2 0.7 0.5
KPIT Cummins Neutral 117 - 2,081 2,028 2,239 15.0 14.8 9.0 11.4 13.0 10.2 2.4 1.9 19.3 18.7 1.0 0.8
Mahindra Satyam Buy 67 89 7,861 7,142 8,042 15.4 15.0 7.7 8.3 8.7 8.1 1.2 1.1 13.8 13.0 0.7 0.6
Mindtree Reduce 619 585 2,510 2,172 2,450 16.1 15.5 53.9 58.5 11.5 10.6 2.2 1.8 18.9 17.0 1.0 0.8
Mphasis Accumulate 388 433 8,160 5,904 6,320 18.3 17.9 38.7 41.2 10.0 9.4 1.5 1.3 14.9 13.7 0.9 0.8
NIIT Buy 40 52 668 1,162 1,304 14.8 15.1 7.1 8.8 5.7 4.6 1.0 0.8 16.7 18.4 0.4 0.3
Persistent Neutral 355 - 1,419 1,109 1,224 23.3 22.4 37.2 40.1 9.5 8.9 1.5 1.3 15.4 14.5 0.9 0.8
TCS Neutral 1,220 - 238,840 57,189 66,329 29.3 28.7 63.2 70.9 19.3 17.2 5.9 4.8 30.5 27.7 3.9 3.3
Tech Mahindra Buy 608 750 7,755 6,030 6,511 16.3 15.7 81.1 87.0 7.5 7.0 1.5 1.3 20.1 18.0 1.3 1.0
Wipro Accumulate 390 430 95,953 41,918 46,879 19.4 19.9 25.1 28.7 15.6 13.6 2.9 2.5 18.6 18.3 1.9 1.6
Media
D B Corp Buy 201 274 3,692 1,656 1,869 26.0 26.8 14.0 16.1 14.4 12.5 3.3 2.8 24.8 24.1 2.2 1.9
HT Media Buy 113 170 2,646 2,255 2,555 17.8 18.3 10.0 12.0 11.3 9.4 1.6 1.3 14.7 15.4 0.9 0.8
Jagran Prakashan Buy 89 137 2,799 1,499 1,642 27.4 28.8 7.6 9.1 11.6 9.8 3.9 3.5 34.6 37.7 1.8 1.7
PVR Neutral 145 - 377 625 732 17.4 16.9 12.4 15.8 11.7 9.2 1.9 2.0 8.5 9.9 0.8 0.6
Sun TV Network Neutral 264 - 10,388 2,135 2,458 75.2 74.4 20.9 24.0 12.6 11.0 3.0 2.5 26.0 25.1 3.8 3.1Metals & Mining
Bhushan Steel Neutral 435 - 9,239 9,232 13,557 30.8 31.1 48.0 58.6 9.1 7.4 1.2 1.0 14.5 7.5 3.1 2.2
Coal India Accumulate 306 351 193,565 65,654 71,756 26.8 27.3 24.0 26.3 12.8 11.6 3.5 2.9 30.4 27.0 2.0 1.7
Electrosteel Castings Buy 19 27 644 1,984 2,074 10.6 12.0 2.7 3.3 6.9 5.7 0.3 0.1 5.2 6.2 0.4 0.4
Hind. Zinc Buy 117 139 49,331 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 109 - 20,830 84,652 88,766 9.6 10.5 17.0 18.9 6.4 5.8 0.6 0.5 9.7 9.8 0.5 0.5
JSW Steel Accumulate 602 663 13,428 39,592 44,910 18.0 17.7 74.7 88.9 8.1 6.8 0.8 0.7 10.7 11.6 0.7 0.6
MOIL Neutral 260 - 4,366 979 1,061 45.7 46.8 24.5 26.6 10.6 9.8 1.6 1.5 16.1 15.8 2.3 2.0
Monnet Ispat Buy 424 593 2,728 3,115 3,748 22.1 25.1 59.1 66.8 7.2 6.4 1.0 0.9 15.6 15.3 1.6 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 57 51 14,780 8,276 8,578 12.7 16.4 2.5 3.5 22.6 16.4 1.3 1.2 5.6 7.5 1.3 1.3
NMDC Accumulate 172 185 68,035 11,726 12,890 77.8 78.4 18.6 20.6 9.2 8.3 2.2 1.8 26.1 23.8 3.6 3.1
SAIL Buy 88 102 36,287 52,461 62,935 18.0 18.8 13.2 14.5 6.7 6.1 0.8 0.7 12.4 12.3 1.1 0.9
Sesa Goa Accumulate 186 206 16,183 9,067 9,316 35.7 35.5 44.5 44.3 4.2 4.2 0.9 0.8 23.5 19.5 0.4 0.1
Sterlite Inds Buy 99 123 33,136 45,805 49,029 21.2 23.5 16.5 19.1 6.0 5.2 0.7 0.6 11.5 12.0 0.3 0.2
Tata Steel Buy 406 503 39,417 141,358 142,265 11.1 13.7 45.8 58.9 8.9 6.9 0.9 0.8 10.0 11.7 0.6 0.6
Oil & GasCairn India Buy 321 372 61,258 15,513 16,074 74.0 69.7 51.1 48.6 6.3 6.6 1.1 0.9 18.3 14.8 2.8 2.1
GAIL Buy 311 392 39,431 50,472 55,503 15.3 15.6 35.4 37.0 8.8 8.4 1.5 1.3 18.7 17.0 0.5 0.4
ONGC Buy 246 319 210,636 148,157 150,563 37.6 39.5 31.0 33.6 7.9 7.3 1.4 1.3 18.8 18.1 1.1 0.9
Reliance Industries Buy 685 872 224,339 325,734 328,669 10.9 11.7 65.8 70.1 10.4 9.8 1.1 1.0 11.9 11.5 0.7 0.6
Pharmaceuticals
Alembic Pharma Buy 50 91 939 1,624 1,855 14.2 15.6 6.6 9.1 7.6 5.5 1.8 1.4 27.5 29.2 0.8 0.7
Aurobindo Pharma Buy 106 175 3,090 5,243 5,767 14.6 14.6 13.8 14.7 7.7 7.2 0.9 0.4 11.4 10.9 0.9 0.8
Aventis* Neutral 2,148 - 4,946 1,482 1,682 15.5 15.5 95.0 104.0 22.6 20.7 4.0 3.1 18.6 17.0 3.1 2.7
Cadila Healthcare Buy 789 953 16,163 6,196 7,443 18.5 19.5 43.3 50.8 18.2 15.5 4.7 3.8 25.4 24.8 2.6 2.1
Cipla Buy 314 379 25,204 7,687 8,804 21.4 21.4 16.5 18.9 19.0 16.6 3.0 2.6 16.7 16.8 3.2 2.8
Dr Reddy's Neutral 1,662 - 28,167 10,696 11,662 20.7 21.0 83.7 92.9 19.9 17.9 4.1 3.5 22.4 21.0 2.8 2.5
Dishman Pharma Buy 46 92 368 1,280 1,536 17.8 17.8 9.2 11.3 5.0 4.0 0.4 0.3 7.7 8.5 0.9 0.8
GSK Pharma* Neutral 2,068 - 17,514 2,651 2,993 31.7 31.2 76.0 82.4 27.2 25.1 7.8 6.8 30.8 29.0 5.7 4.9
Indoco Remedies Buy 58 665 537 685 837 15.2 15.2 55.5 66.5 1.1 0.9 0.2 0.1 16.4 16.9 1.0 0.9
Ipca labs Buy 348 443 4,378 2,907 3,541 21.5 21.5 32.4 40.6 10.7 8.6 2.7 2.1 27.8 27.7 1.6 1.3
Lupin Buy 544 646 24,311 8,426 10,082 19.7 20.0 29.7 32.4 18.3 16.8 4.8 3.8 27.0 25.2 2.8 2.2Orchid Chemicals Buy 126 178 886 2,117 2,434 17.7 17.7 16.7 22.2 7.5 5.7 0.7 0.6 9.5 11.5 1.1 0.9
Ranbaxy* Neutral 488 - 20,584 12,046 11,980 18.0 15.8 35.7 29.8 13.7 16.4 5.1 4.2 43.1 28.1 1.7 1.7
Sun Pharma Accumulate 580 634 59,760 9,272 11,080 40.3 36.3 26.7 28.8 21.7 20.2 4.4 3.8 22.1 20.8 5.6 4.6
Power
CESC Buy 275 342 3,435 5,084 5,512 24.2 23.8 45.2 48.5 6.1 5.7 0.7 0.6 11.2 10.9 1.1 1.1
GIPCL Buy 60 98 901 1,557 1,573 28.7 27.5 10.4 10.2 5.8 5.9 0.6 0.6 10.5 9.6 1.0 0.9
NTPC Buy 142 201 117,168 73,558 84,843 23.4 23.6 12.6 14.1 11.3 10.1 1.4 1.3 13.3 13.6 2.3 2.2
Real Estate
Anant Raj Buy 51 78 1,505 657 875 52.0 56.1 8.4 12.7 6.1 4.0 0.4 0.3 6.3 8.9 3.6 2.7
DLF Neutral 185 - 31,395 9,878 12,033 44.7 46.1 9.6 13.4 19.3 13.8 1.2 1.2 6.4 8.7 5.7 4.7
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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
Real Estate
HDIL Buy 62 115 2,598 2,441 3,344 53.0 46.7 21.4 25.4 2.9 2.4 0.2 0.2 8.4 9.1 2.9 2.2
Telecom
Bharti Airtel Neutral 298 - 113,280 80,967 88,684 33.1 33.4 17.9 22.0 16.7 13.5 1.9 1.7 11.5 12.5 2.1 1.8
Idea Cellular Neutral 83 - 27,319 22,558 25,326 26.4 27.5 3.2 4.7 25.6 17.4 1.9 1.7 7.5 10.0 1.7 1.5
Rcom Neutral 65 - 13,406 21,899 23,740 32.7 32.7 4.2 6.7 15.4 9.7 0.3 0.3 2.1 3.2 2.0 1.6
zOthers
Bajaj Electrical Accumulate 218 245 2,176 3,670 4,384 8.5 8.5 18.3 22.3 11.9 9.8 2.6 2.2 23.9 24.3 0.6 0.5CRISIL Neutral 1,063 - 7,455 982 1,136 34.3 34.3 34.3 40.0 30.9 26.6 14.0 11.2 50.9 46.9 7.2 6.0
Finolex Cables Buy 36 61 544 2,334 2,687 8.8 9.3 7.6 10.2 4.7 3.5 0.6 0.5 13.7 16.1 0.2 0.1
Graphite India Buy 92 124 1,800 2,158 2,406 18.1 18.9 12.4 14.0 7.4 6.6 1.0 0.9 14.0 14.3 1.0 0.8
Greenply Buy 210 298 507 1,800 2,047 11.1 11.6 34.1 49.6 6.2 4.2 1.1 0.9 20.2 23.7 0.5 0.4
Page Industries Neutral 3,064 - 3,418 935 1,168 19.6 19.6 99.7 122.2 30.7 25.1 17.8 14.2 64.2 63.1 3.7 3.0
Sintex Buy 52 129 1,417 5,219 5,912 16.5 16.9 15.8 21.4 3.3 2.4 0.5 0.4 14.7 17.1 0.5 0.4
Siyaram Silk Mills Buy 246 439 230 1,045 1,173 12.3 12.4 61.5 73.2 4.0 3.4 0.8 0.6 20.2 20.4 0.5 0.4
SpiceJet Neutral 27 - 1,315 5,384 6,443 (1.0) 4.1 (3.4) 2.4 (8.0) 11.4 (11.0) 23.2 - - 0.4 0.4
Taj GVK Buy 59 108 368 300 319 35.8 36.2 7.9 9.1 7.4 6.5 1.0 0.9 13.9 14.4 1.5 1.3
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on May 17, 2012
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May 18, 2012Market Outlook