market outlook 230812

7/31/2019 Market Outlook 230812

1/12

Market Outlook August 23, 2012

www.angelbroking.com


Dealers Diary Indian markets are expected to open flat, tracing flattish opening trades in the SGX Nifty and mixed openings in the Asian indices. Asian stocks gained strength onspeculation that central banks in the US and China will ease monetary policy tosupport the worlds biggest economies.

Stocks in the US markets moved mostly lower in morning trading on Wednesday but regained some ground in the afternoon before ending the day mixed. The early weakness on Wall Street was partly due to some troubling economic news fromoverseas, with a report from Japan showing that the country swung to a tradedeficit in July. Stocks subsequently regained some ground following the release ofthe minutes of the Federal Reserve's latest monetary policy meeting, whichsuggested that the central bank is losing patience with the pace of the fragile U.S.economic recovery

Indian shares reversed early gains to end slightly lower on Wednesday, weigheddown by weak global cues as disappointing Japanese trade data added toevidence that the global economy is slowing. Meanwhile host of importanteconomic indicators are due for release today (US initial jobless claims and newhome sales, Germany PMI manufacturing, Euro zone consumer confidence) whichcould provide direction to the markets for the rest of the week.

Markets Today The trend deciding level for the day is 17,853 / 5,414 levels. If NIFTY trades abovethis level during the first half-an-hour of trade then we may witness a further rally up to 17,906 17,965 / 5,433 5,452 levels. However, if NIFTY trades below17,853 / 5,414 levels for the first half-an-hour of trade then it may correct up to17,794 17,741 / 5,394 5,375 levels.

SENSEX 17,741 17,794 17,853 17,906 17,965NIFTY 5,375 5,394 5,414 5,433 5,452

News Analysis Ranbaxy Labs- Withdrawal of drugs Result Preview- Shree Cement

Refer detailed news analysis on the following page

Net Inflows (August 21, 2012)

FII 2,253 2,041 212 2,889 58,581MFs 564 598 (33) (459) (8,929)

FII Derivatives (August 22, 2012)

Index Futures 1,118 935 184 17,169Stock Futures 2,185 2,399 (214) 26,001

Gainers / Losers

Indian Hotels 64 4.5 Opto Circuits 138 (6.4)Jet Air India 397 4.4 Reliance Comm 54 (4.7)Ranbaxy Lab 535 4.1 United Brew-$ 546 (4.4)Pidilite Inds 187 3.4 Reliance Power 86 (3.9)NMDC 187 3.3 Shree Renuka Sug 32 (3.9)

BSE Sensex (0.2) (38.4) 17,847

Nifty (0.2) (8.2) 5,413

MID CAP (0.2) (12.7) 6,160SMALL CAP (0.2) (14.9) 6,635

BSE HC 0.4 27.6 7,364

BSE PSU 0.1 8.9 7,160

BANKEX 0.0 5.3 12,026

AUTO 0.2 23.1 9,672

METAL (0.1) (7.8) 10,429

OIL & GAS (0.3) (23.0) 8,516

BSE IT 0.1 8.2 5,719

Dow Jones (0.2) (30.8) 13,173NASDAQ 0.2 6.4 3,074

FTSE (1.4) (83.3) 5,774

Nikkei (0.3) (25.2) 9,132

Hang Seng (1.1) (212.3) 19,888

Straits Times (0.5) (16.3) 3,049

Shanghai Com (0.5) (10.6) 2,108

INFY 0.0 0.0 $43.5

WIT (0.9) (0.1) $8.1IBN 0.6 0.2 $35.4

HDB 0.9 0.3 $35.3

Advances 1297 654

Declines 1,523 790

Unchanged 143 75

BSE 2,042

NSE 8,899


2/12



Ranbaxy Labs- Withdrawal of drugs

With reference to development relating to withdrawal by Ranbaxy of 27 approved ANDAs in the USA market appearing on US Regulator website, company has

clarified that the certain products with negligible commercial impact should bewithdrawn which according to the company would enable the organization tofocus resources on other applications that are of greater importance and value tothe US business and healthcare system. Further, according to the company, theaforesaid ANDAs do not pertain to current business and will have a negligibleimpact on the Companys business in USA.

Result Preview

Shree Cement (CMP: `

3,245 /TP: /Upside :-)Shree Cement is expected to announce its 5QFY2012 results. We expect thetopline to grow by 33.7% yoy to ` 1,383cr due to healthy growth in revenues ofboth the cement and power divisions. The growth in cement division is expected tobe lead by a double digit growth in volumes as well as improvement in realization.Power division too is expected to post healthy revenues due to growth in volumesaided by 300MW of additional power capacity on a yoy basis. OPM is expected togrow by 95bp yoy to 26%. Net profit is expected to come in at ` 161cr (vs. ` 63cr in1QFY2012).

FY2013E 5,519 24.5 546 157 22.3 20.8 4.2 7.2 105

FY2014E 6,293 23.7 785 225 26.0 14.5 3.4 5.9

Note: * Computed on TTM basis

Economic and Political News Nearly ` 6.50 lakh trademarks applications pending with government

Four states may not buy power based on pooled coal price PM must take responsibility on coal allocation issue: BJP

Corporate News L&T seeks shareholders' nod to raise up to ` 3,200cr Wockhardt gets tentative USFDA nod for anti-psychotic drug Alstom gets ` 700cr contract for nuclear power gear SC to hear Novartis patent case from Sept 11 Sachin Khandelwal quits ICICI to head Magma's home finance biz

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


3/12


4/12

Market StrategyAugust 23, 2012


Macro watch

Exhibit 1 : Q uarterly G D P trends

5. 9

7 .5

9. 8

7. 4

9 .4

8. 5

7. 68. 2

9. 2

8. 0

6. 76. 1

5. 3

3. 0

4. 0

5. 0

6. 0

7. 0

8. 0

9. 0

10.0

4 Q F Y 0 9

1 Q F Y 1 0

2 Q F Y 1 0

3 Q F Y 1 0

4 Q F Y 1 0

1 Q F Y 1 1

2 Q F Y 1 1

3 Q F Y 1 1

4 Q F Y 1 1

1 Q F Y 1 2

2 Q F Y 1 2

3 Q F Y 1 2

4 Q F Y 1 2

(%)

Source: CSO, Ang el Research

Exhibit 2 : IIP trends

3 .7 3. 42. 5

(5.0)

6. 0

2 .7

1. 0

4. 3

(2.8) (0.9)

2. 5

(1.8)

(6.0)

(4.0)

(2.0)

-

2. 0

4. 0

6. 0

8. 0

J u l - 1 1

A u g - 1

1

S e p - 1

1

O c t - 1 1

N o v - 1

1

D e c - 1

1

J a n - 1

2

F e b

- 1 2

M a r - 1 2

A p r - 1 2

M a y - 1

2

J u n - 1

2

(%)

Source: M O SPI, Ang el Research

Exhibit 3 : M onthly WPI inflation trends

9. 8 10.0 9. 9 9. 5

7. 76. 9 7. 4

7. 7 7. 5 7. 6 7. 3 6. 9

0. 02. 0

4. 0

6. 0

8. 0

10.0

12.0

A u g - 1

1

S e p - 1

1

O c t - 1

1

N o v - 1 1

D e c - 1

1

J a n - 1

2

F e b

- 1 2

M a r - 1 2

A p r - 1 2

M a y - 1

2

J u n - 1

2

J u l - 1 2

(%)

Source: M O SPI, Ang el Research

Exhibit 4 : M a nufacturing a nd services PM I

48.0

50.0

52.0

54.0

56.0

58.0

60.0

J u l - 1 1

A u g - 1

1

S e p - 1

1

O c t - 1 1

N o v - 1

1

D e c - 1

1

J a n - 1

2

F e b

- 1 2

M a r - 1 2

A p r - 1 2

M a y - 1

2

J u n - 1

2

J u l - 1 2

M fg. PM I Services PM I

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

Exhibit 5 : Expo rts an d impo rts growth trends

(30.0)

(15.0)

0. 0

15.0

30.0

45.0

60.0

75.0

J u l - 1 1

A u g - 1

1

S e p - 1

1

O c t - 1 1

N o v - 1

1

D e c - 1

1

J a n - 1

2

F e b

- 1 2

M a r - 1 2

A p r - 1 2

M a y - 1

2

J u n - 1

2

Expo rts yo y g ro wth Im ports yo y growth( %)

Source: Bloomberg, Angel Research

Exhibit 6 : Key policy rates

4.00

5.00

6.00

7.00

8.00

9.00

A u g - 1

1

S e p - 1

1

O c t - 1 1

N o v - 1

1

D e c - 1

1

J a n - 1

2

F e b

- 1 2

M a r - 1 2

A p r - 1 2

M a y - 1

2

J u n - 1

2

J u l - 1 2

A u g - 1

2

Repo rate Reverse Repo rate C RR(%)

Source: RBI, Angel Research


5/12

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 128 - 2,492 1,466 1,686 14.8 14.8 7.0 8.1 18.3 15.8 3.9 3.3 22.6 22.5 1.8 1.5

United Phosphorus Buy 109 170 5,013 8,421 9,263 16.5 16.5 15.0 17.0 7.3 6.4 1.1 0.9 15.6 15.5 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Accumulate 381 402 3,253 2,844 3,225 15.4 15.5 31.7 36.6 12.0 10.4 3.1 2.5 28.8 26.2 1.1 0.9

Apollo Tyres Accumulate 94 99 4,733 13,412 15,041 11.0 11.0 11.5 14.2 8.2 6.6 1.4 1.2 18.7 19.4 0.5 0.4 Ashok Leyland Buy 22 30 5,880 14,920 16,850 9.0 9.3 2.2 2.8 10.2 8.0 1.9 1.6 13.3 15.6 0.5 0.4

Automotive Axle Buy 342 430 516 993 1,140 11.6 11.5 36.9 43.0 9.3 8.0 1.8 1.6 21.2 21.3 0.6 0.4Bajaj Auto Neutral 1,726 - 49,936 21,285 23,927 18.2 18.3 108.5 121.3 15.9 14.2 6.6 5.3 46.1 41.3 2.0 1.7Bharat Forge Buy 291 351 6,768 7,004 7,985 16.2 16.4 20.3 25.1 14.3 11.6 2.7 2.2 20.0 20.9 1.2 1.0

Bosch India Neutral 8,754 - 27,486 9,034 10,286 17.8 18.3 373.6 435.8 23.4 20.1 4.8 4.0 20.5 19.8 2.7 2.3CEAT Buy 121 164 413 4,989 5,634 8.7 8.5 32.7 41.1 3.7 2.9 0.5 0.5 15.8 16.9 0.3 0.2

Exide Industries Buy 127 149 10,821 5,899 6,771 16.0 17.0 7.4 9.1 17.3 13.9 3.1 2.6 19.0 20.2 1.5 1.2FAG Bearings Neutral 1,600 - 2,659 1,505 1,747 17.7 18.0 111.5 130.0 14.4 12.3 3.0 2.4 22.8 21.7 1.5 1.2

Hero Motocorp Buy 1,934 2,428 38,614 26,097 29,963 15.0 15.3 139.5 151.8 13.9 12.7 6.5 5.0 54.6 44.3 1.2 1.0JK Tyre Accumulate 121 135 498 7,517 8,329 6.1 6.3 26.2 38.5 4.6 3.2 0.6 0.5 13.4 17.2 0.4 0.3Mahindra and Mahindra Accumulate 784 879 48,124 36,536 41,650 11.6 11.5 49.3 54.9 15.9 14.3 3.3 2.8 22.1 21.1 1.1 0.9

Maruti Neutral 1,183 - 34,180 42,887 49,079 5.5 6.6 66.8 87.6 17.7 13.5 2.0 1.8 12.1 14.1 0.6 0.5Motherson Sumi Buy 184 216 7,229 23,342 26,366 7.8 8.2 13.3 18.0 13.9 10.3 3.3 2.6 26.2 28.4 0.5 0.4

Subros Accumulate 30 34 181 1,230 1,378 8.8 8.6 4.5 5.7 6.7 5.3 0.6 0.6 9.8 11.8 0.4 0.3Tata Motors Buy 248 292 66,068 195,096 219,428 12.8 12.8 39.0 43.9 6.4 5.7 1.8 1.4 32.6 28.2 0.4 0.3

TVS Motor Accumulate 39 43 1,869 7,545 8,301 6.2 6.1 4.9 5.4 8.0 7.3 1.4 1.3 18.8 18.2 0.2 0.2

Capital Goods

ABB* Sell 764 498 16,195 8,760 10,023 5.5 7.5 12.4 20.7 61.5 36.9 5.9 5.2 10.1 15.2 1.8 1.6BGR Energy Neutral 272 - 1,962 3,669 4,561 11.0 11.0 24.7 29.6 11.0 9.2 1.6 1.5 15.3 16.7 - 0.6BHEL Neutral 232 - 56,833 47,801 43,757 19.4 19.8 25.7 23.9 9.0 9.7 1.9 1.7 22.7 18.3 1.1 0.9

Blue Star Neutral 185 - 1,660 3,047 3,328 5.4 6.9 12.5 16.2 14.8 11.4 3.6 2.9 26.1 28.2 0.6 0.5Crompton Greaves Accumulate 120 128 7,717 12,691 14,096 7.0 8.5 6.5 9.1 18.5 13.2 2.0 1.8 11.1 14.2 0.6 0.6Jyoti Structures Buy 39 67 319 2,622 2,801 10.6 11.0 10.9 13.4 3.6 2.9 0.5 0.4 13.7 14.9 0.3 0.3

KEC International Buy 59 69 1,513 6,858 7,431 7.5 8.3 9.0 11.5 6.6 5.1 1.2 1.0 26.9 27.2 0.3 0.3LMW Neutral 1,930 - 2,174 2,369 2,727 11.7 11.7 143.4 166.0 13.5 11.6 2.2 2.1 17.4 18.4 0.5 0.3

Thermax Neutral 496 - 5,911 5,514 5,559 8.9 9.6 26.9 28.4 18.5 17.5 3.2 2.8 18.4 17.1 1.0 1.0


August 23, 2012

Market Outlook

Stock Watch


6/12



Cement

ACC Neutral 1,361 - 25,544 11,220 12,896 20.0 20.6 71.1 81.2 19.1 16.8 3.4 3.0 18.1 19.0 2.0 1.6 Ambuja Cements Neutral 193 - 29,773 10,205 11,659 24.6 24.2 10.8 12.0 17.9 16.1 3.7 3.3 19.7 19.8 2.5 2.1

India Cements Neutral 89 - 2,722 4,393 4,914 19.3 19.5 10.1 12.7 8.8 7.0 0.8 0.7 8.8 10.6 1.1 0.9J K Lakshmi Cements Neutral 96 - 1,175 1,964 2,278 19.5 20.4 16.3 17.9 5.9 5.4 0.9 0.8 14.7 14.6 0.8 1.1

Madras Cements Neutral 182 - 4,330 3,608 3,928 27.4 26.9 15.6 18.1 11.7 10.1 1.8 1.6 16.8 16.9 1.8 1.6Shree Cements Neutral 3,260 - 11,356 5,519 6,293 24.5 23.7 156.6 225.3 20.8 14.5 5.2 4.4 22.3 26.0 1.8 1.4

UltraTech Cement Neutral 1,736 - 47,574 20,167 22,752 21.7 23.0 90.8 107.8 19.1 16.1 19.1 16.1 - - 2.0 1.8Construction

Ashoka Buildcon Buy 260 304 1,367 2,014 2,293 22.4 22.4 22.6 26.7 11.5 9.7 1.2 1.1 11.4 11.9 2.5 2.8

Consolidated Co Neutral 15 - 270 2,262 2,522 6.7 7.5 1.5 2.7 9.8 5.5 0.4 0.4 4.4 7.5 0.4 0.4Hind. Const. Neutral 17 - 1,019 4,239 4,522 9.9 11.2 (2.3) (1.0) (7.4) (17.4) 0.9 1.0 (11.4) (5.6) 1.1 1.2IRB Infra Buy 124 166 4,111 3,964 4,582 42.3 40.2 15.5 16.9 8.0 7.3 1.2 1.1 16.6 15.8 2.6 2.5

ITNL Buy 168 232 3,272 6,840 7,767 26.4 26.1 24.4 28.4 6.9 5.9 1.0 0.9 16.0 16.2 2.7 2.8IVRCL Infra Buy 43 61 1,155 5,510 6,722 8.8 9.0 2.5 4.6 17.1 9.5 0.6 0.5 3.4 5.8 0.7 0.6

Jaiprakash Asso. Buy 77 91 16,416 15,259 17,502 25.7 24.7 4.2 5.0 18.2 15.4 1.5 1.4 8.5 9.3 2.4 2.1Larsen & Toubro Accumulate 1,457 1,553 89,417 60,474 69,091 12.1 11.5 79.7 85.4 18.3 17.1 3.1 2.7 16.3 15.1 1.6 1.4

Madhucon Proj Buy 34 56 251 2,206 2,502 10.7 10.7 4.6 4.7 7.3 7.3 0.4 0.4 5.2 5.0 0.7 0.7Nagarjuna Const. Accumulate 39 45 1,005 5,804 6,513 8.0 8.6 3.0 3.5 12.9 11.2 0.4 0.4 3.2 3.6 0.6 0.7

Patel Engg. Neutral 78 - 541 3,609 3,836 13.1 13.1 14.0 14.6 5.5 5.3 0.3 0.3 6.3 6.1 1.0 1.0Punj Lloyd Neutral 50 - 1,672 11,892 13,116 8.9 8.9 1.7 3.1 29.7 16.3 0.6 0.6 1.9 3.4 0.6 0.5Sadbhav Engg. Buy 134 182 2,016 2,789 3,147 10.6 10.7 8.4 10.4 15.9 12.9 2.2 1.9 15.0 15.6 0.9 0.8

Simplex Infra Buy 205 265 1,016 6,732 7,837 8.1 8.4 23.5 29.4 8.7 7.0 0.8 0.7 9.6 11.0 0.5 0.4

Financials Allahabad Bank Neutral 127 - 6,333 7,233 8,579 3.1 3.3 40.5 40.9 3.1 3.1 0.6 0.5 19.4 17.0 - -

Andhra Bank Neutral 97 - 5,448 4,959 5,787 3.1 3.1 22.7 24.5 4.3 4.0 0.7 0.6 16.0 15.3 - - Axis Bank Buy 1,111 1,373 46,026 15,961 19,583 3.1 3.2 117.3 143.1 9.5 7.8 1.8 1.5 20.1 20.8 - -

Bank of Baroda Buy 645 829 25,261 15,830 19,300 2.6 2.7 118.9 147.1 5.4 4.4 0.9 0.7 16.7 18.0 - -Bank of India Buy 279 323 16,006 13,159 15,851 2.4 2.5 61.1 71.1 4.6 3.9 0.8 0.7 16.6 17.0 - -

Bank of Maharashtra Neutral 46 - 2,691 3,471 3,889 3.1 3.1 9.0 11.5 5.1 4.0 0.7 0.6 13.7 15.5 - -Canara Bank Buy 341 421 15,104 11,334 13,629 2.2 2.3 75.4 85.1 4.5 4.0 0.7 0.6 15.2 15.3 - -

Central Bank Neutral 67 - 4,961 7,181 8,365 2.5 2.7 16.3 21.8 4.1 3.1 0.7 0.6 12.7 15.1 - -


August 23, 2012

Market Outlook

Stock Watch


7/12



Financials

Corporation Bank Buy 376 436 5,571 5,067 5,998 2.1 2.3 105.6 111.0 3.6 3.4 0.6 0.5 17.6 16.3 - -Dena Bank Buy 90 107 3,149 3,177 3,595 2.8 2.8 25.2 25.4 3.6 3.6 0.6 0.6 18.9 16.4 - -

Federal Bank Accumulate 437 459 7,469 2,697 3,171 3.4 3.4 47.9 58.0 9.1 7.5 1.2 1.1 13.6 14.7 - -HDFC Reduce 727 671 110,263 7,340 8,805 3.5 3.5 31.5 37.8 23.1 19.2 4.6 4.1 34.8 32.2 - -

HDFC Bank Neutral 597 - 140,761 21,936 27,454 4.4 4.4 28.7 36.0 20.8 16.6 4.0 3.4 20.7 22.0 - -ICICI Bank Buy 974 1,169 111,904 22,356 27,157 2.9 3.0 68.7 82.0 14.2 11.9 1.7 1.6 14.2 15.5 - -

IDBI Bank Buy 87 101 11,071 7,952 9,876 1.9 2.2 18.5 23.6 4.7 3.7 0.6 0.5 12.8 14.7 - -Indian Bank Accumulate 165 190 7,111 6,294 7,191 3.4 3.4 40.6 44.9 4.1 3.7 0.7 0.6 18.1 17.4 - -IOB Accumulate 72 80 5,722 7,473 8,732 2.5 2.5 16.7 22.6 4.3 3.2 0.5 0.5 11.8 14.4 - -

J & K Bank Accumulate 951 1,026 4,609 2,625 2,921 3.6 3.5 194.4 191.9 4.9 5.0 1.0 0.8 21.2 18.0 - -LIC Housing Finance Accumulate 254 279 12,806 1,867 2 ,338 2.4 2.4 21.1 28.5 12.0 8.9 2.0 1.7 17.5 20.4 - -

Oriental Bank Buy 235 278 6,842 6,518 7,458 2.8 2.9 61.3 65.1 3.8 3.6 0.6 0.5 15.2 14.3 - -Punjab Natl.Bank Buy 710 950 24,077 20,116 23,625 3.3 3.4 152.8 173.9 4.7 4.1 0.8 0.7 18.2 18.0 - -

South Ind.Bank Buy 23 27 2,561 1,514 1,717 2.8 2.7 4.0 4.2 5.7 5.4 1.1 0.9 20.5 18.5 - -St Bk of India Buy 1,913 2,270 128,347 64,470 75,940 3.5 3.5 224.4 258.7 8.5 7.4 1.4 1.2 17.6 17.8 - -Syndicate Bank Buy 96 119 5,770 6,840 7,996 2.9 3.0 25.7 29.2 3.7 3.3 0.6 0.6 17.9 17.8 - -

UCO Bank Neutral 68 - 4,533 5,488 6,338 2.4 2.5 17.3 17.7 4.0 3.9 0.8 0.7 17.0 15.3 - -Union Bank Buy 164 230 9,040 10,299 12,227 2.9 3.0 42.1 49.3 3.9 3.3 0.7 0.6 16.7 17.1 - -

United Bank Buy 53 79 1,908 3,634 4,194 2.8 2.9 18.2 23.0 2.9 2.3 0.4 0.4 15.0 16.7 - - Vijaya Bank Neutral 52 - 2,569 2,579 3,028 2.1 2.3 8.8 11.6 5.9 4.5 0.7 0.6 11.1 13.3 - -

Yes Bank Buy 357 453 12,680 3,255 4,228 2.8 3.0 34.2 42.7 10.5 8.4 2.2 1.8 23.3 23.8 - -

FMCG

Asian Paints Neutral 3,691 - 35,403 11,198 13,184 16.3 16.3 121.0 144.8 30.5 25.5 10.2 8.0 37.4 35.3 3.1 2.6Britannia Buy 475 584 5,673 5,835 6,824 5.7 6.0 20.7 25.4 22.9 18.7 9.0 6.9 43.1 41.9 0.9 0.7Colgate Neutral 1,182 - 16,079 3,018 3,429 20.9 22.3 34.6 41.0 34.2 28.9 31.5 23.9 99.5 94.1 5.2 4.5

Dabur India Neutral 119 - 20,757 6,124 7,030 17.0 16.8 4.5 5.2 26.7 23.0 11.0 8.7 43.2 41.5 3.4 2.9GlaxoSmith Con* Neutral 2,859 - 12,022 3,124 3,663 17.1 17.6 104.5 123.8 27.4 23.1 8.5 6.8 34.4 32.8 3.5 2.9

Godrej Consumer Neutral 666 - 22,679 6,097 7,233 18.4 18.6 21.9 26.5 30.5 25.2 6.8 5.6 25.5 25.4 3.9 3.2HUL Neutral 512 - 110,591 25,350 28,974 13.9 13.9 14.3 16.5 35.9 31.1 21.4 16.4 70.9 59.8 4.2 3.6ITC Neutral 262 - 204,913 29,513 33,885 35.4 35.8 9.3 10.8 28.2 24.3 9.3 7.8 35.6 35.0 6.6 5.7


August 23, 2012

Market Outlook

Stock Watch


8/12



FMCG

Marico Neutral 189 - 12,153 4,840 5,643 13.1 13.1 6.8 8.5 27.8 22.3 7.7 5.8 31.4 29.7 2.5 2.1Nestle* Neutral 4,580 - 44,163 8,610 10,174 20.9 21.2 114.8 139.8 39.9 32.8 24.1 16.8 71.2 60.3 5.2 4.3

Tata Global Neutral 132 - 8,150 7,207 7,927 9.7 10.0 6.6 7.9 19.9 16.8 2.0 1.9 8.6 9.5 1.0 0.9

IT

HCL Tech Accumulate 553 585 38,368 24,400 27,049 18.6 17.5 41.1 45.0 13.5 12.3 3.0 2.6 22.7 21.1 1.5 1.3

Hexaware Accumulate 123 133 3,635 1,947 2,161 22.0 21.4 11.4 12.1 10.8 10.1 2.8 2.4 26.4 24.0 1.6 1.4

Infosys Neutral 2,429 - 139,504 39,151 41,743 31.6 31.9 161.9 174.5 15.0 13.9 3.6 3.1 23.8 22.1 3.0 2.7Infotech Enterprises Neutral 179 - 1,989 1,889 2,065 18.0 17.5 18.0 19.7 9.9 9.1 1.4 1.3 14.5 13.7 0.7 0.6KPIT Cummins Neutral 136 - 2,427 2,149 2,331 15.6 14.8 10.7 11.2 12.7 12.1 2.7 2.2 20.6 17.8 1.1 1.0

Mahindra Satyam Neutral 99 - 11,668 7,574 8,062 19.6 18.4 9.5 9.7 10.5 10.3 1.7 1.4 16.1 14.1 1.1 1.0Mindtree Accumulate 673 708 2,744 2,341 2,513 18.6 17.1 66.5 70.8 10.1 9.5 2.2 1.8 22.3 19.3 1.0 0.9Mphasis Neutral 389 - 8,171 5,704 6,009 18.6 17.7 36.0 37.1 10.8 10.5 1.5 1.3 14.0 12.6 1.0 0.8

NIIT Buy 34 40 567 1,162 1,304 14.8 15.1 7.1 8.8 4.8 3.9 0.8 0.7 16.7 18.4 0.3 0.2Persistent Neutral 380 - 1,521 1,193 1,278 25.6 24.3 42.6 44.3 8.9 8.6 1.5 1.3 17.2 15.5 0.9 0.8

TCS Neutral 1,292 - 252,883 61,046 67,507 29.3 29.1 67.3 72.4 19.2 17.8 6.1 5.1 31.9 28.3 3.9 3.5Tech Mahindra Neutral 855 - 10,907 6,148 6,434 18.4 17.6 91.8 97.6 9.3 8.8 2.2 1.8 23.4 20.2 1.7 1.6

Wipro Buy 354 420 87,177 43,492 48,332 19.4 19.3 25.1 28.0 14.1 12.6 2.6 2.3 18.6 18.0 1.7 1.4

Media

D B Corp Buy 185 236 3,399 1,597 1,785 22.9 24.2 11.1 13.9 16.7 13.3 3.2 2.7 20.2 22.1 2.0 1.8

HT Media Buy 86 113 2,031 2,111 2,263 15.2 15.2 7.3 8.1 11.8 10.6 1.3 1.1 11.2 11.2 0.5 0.4Jagran Prakashan Buy 91 112 2,892 1,506 1,687 22.5 23.2 6.2 7.0 14.7 13.1 3.5 3.2 25.0 25.7 2.1 1.9

PVR Neutral 188 - 488 625 732 17.4 17.1 13.3 15.6 14.1 12.0 1.5 1.4 13.2 13.8 1.2 1.0

Sun TV Network Neutral 305 - 12,014 1,981 2,239 77.0 76.7 18.6 21.3 16.4 14.3 4.1 3.6 27.1 27.5 5.5 4.7Metals & Mining

Bhushan Steel Neutral 469 - 9,966 11,979 14,584 31.6 31.0 49.2 61.4 9.5 7.6 1.3 1.1 14.1 15.2 2.8 2.4Coal India Accumulate 355 385 224,452 69,808 75,550 27.4 27.4 26.0 28.3 13.7 12.6 4.0 3.2 32.5 28.1 2.3 1.9

Electrosteel Castings Buy 19 23 657 1,984 2,074 11.2 12.6 2.5 2.9 7.7 6.6 0.4 0.1 5.1 5.7 0.5 0.5Hind. Zinc Accumulate 130 144 55,098 12,446 13,538 52.3 52.9 14.3 15.5 9.1 8.4 1.7 1.5 20.5 18.9 2.6 2.0Hindalco Neutral 113 - 21,596 84,855 92,446 8.7 9.3 13.2 16.2 8.5 7.0 0.6 0.6 7.8 8.9 0.6 0.6

JSW Steel Neutral 720 - 16,056 38,740 41,459 17.3 17.0 79.9 89.4 9.0 8.1 0.9 0.8 10.4 10.6 0.8 0.8MOIL Accumulate 251 271 4,224 918 993 50.7 50.9 24.5 26.1 10.3 9.6 1.6 1.4 16.0 15.5 2.3 2.0

Monnet Ispat Buy 292 379 1,878 2,511 3,303 23.8 26.0 46.3 57.3 6.3 5.1 0.7 0.6 12.4 13.7 1.7 1.2


August 23, 2012

Market Outlook

Stock Watch


9/12



Metals & Mining

Nalco Reduce 52 48 13,505 7,401 7,841 16.7 19.2 3.4 4.1 15.3 12.8 1.1 1.1 7.4 8.4 1.4 1.3NMDC Accumulate 187 214 74,219 12,934 14,266 79.4 80.1 21.1 23.4 8.9 8.0 2.4 1.9 29.6 26.5 3.9 3.3

SAIL Neutral 85 - 35,068 47,252 60,351 14.2 14.8 9.6 11.7 8.9 7.2 0.8 0.7 9.4 10.6 1.2 1.0Sesa Goa Neutral 191 - 16,574 7,704 8,034 33.6 34.6 42.0 43.1 4.5 4.4 0.9 0.8 22.3 19.2 0.4 -

Sterlite Inds Neutral 112 - 37,706 41,680 45,382 24.2 23.2 16.3 16.9 6.9 6.6 0.7 0.7 11.3 10.7 0.6 0.4Tata Steel Buy 393 481 38,130 145,799 150,431 10.3 11.2 48.6 63.3 8.1 6.2 0.8 0.7 10.5 12.4 0.5 0.5

Sarda Accumulate 129 148 464 1,251 1,321 22.7 23.4 33.0 37.1 3.9 3.5 0.6 0.5 15.1 14.8 0.7 0.7Prakash Industries Buy 60 73 804 2,694 2,906 14.6 16.6 17.9 22.6 3.4 2.7 0.4 0.3 11.4 12.8 0.5 0.4Godawari Power andIspat Buy 122 161 389 2,341 2,425 15.6 17.3 33.8 43.8 3.6 2.8 0.4 0.4 13.2 14.4 0.5 0.5

Oil & Gas

Cairn India Accumulate 334 380 63,698 16,605 17,258 75.4 71.7 57.0 54.9 5.9 6.1 1.1 0.9 20.2 16.3 2.9 2.2

GAIL Neutral 367 - 46,578 50,176 55,815 15.5 15.8 35.4 36.5 10.4 10.1 1.8 1.6 18.9 17.0 0.1 -ONGC Accumulate 286 312 244,815 147,139 154,821 33.9 33.7 30.7 32.3 9.3 8.9 1.6 1.5 18.3 17.2 1.4 1.3Reliance Industries Neutral 808 - 264,600 362,700 380,031 7.9 8.0 61.5 64.3 13.2 12.6 1.3 1.2 10.3 9.9 0.7 0.7

Gujarat Gas Neutral 303 - 3,883 2,472 3,267 16.1 11.5 21.2 19.2 14.3 15.8 4.9 4.2 33.4 28.7 1.5 1.1Indraprastha Gas Neutral 260 - 3,641 3,040 3,135 24.3 26.7 24.8 27.9 10.5 9.3 2.4 2.0 25.5 23.6 1.2 1.1

Petronet LNG Buy 151 176 11,318 22,696 29,145 8.1 6.6 14.1 14.2 10.7 10.6 3.2 2.6 34.1 26.9 0.6 0.4Gujarat State PetronetLtd. Neutral 74 - 4,156 1,041 939 91.8 91.9 8.5 7.4 8.7 10.0 1.5 1.3 18.1 14.0 4.9 5.4

Pharmaceuticals

Alembic Pharma Buy 68 91 1,280 1,624 1,855 14.2 15.6 6.6 9.1 10.3 7.5 2.5 2.0 27.9 29.2 0.9 0.8 Aurobindo Pharma Buy 107 156 3,119 5,243 5,767 14.6 14.6 11.8 12.6 9.1 8.5 0.9 0.4 17.9 16.4 1.1 0.9

Aventis* Neutral 2,171 - 5,000 1,482 1,682 15.5 15.5 95.0 104.0 22.9 20.9 4.1 3.2 18.6 17.0 3.2 2.7Cadila Healthcare Accumulate 876 953 17,941 6,148 7,386 18.6 19.6 36.0 46.1 24.3 19.0 5.7 4.6 25.8 26.8 3.1 2.6

Cipla Accumulate 360 399 28,925 8,031 9,130 23.4 22.4 18.4 20.0 19.6 18.0 3.2 2.8 17.8 16.6 3.4 2.9Dr Reddy's Neutral 1,677 - 28,456 10,696 11,662 20.7 21.0 83.7 92.9 20.0 18.1 4.1 3.5 22.4 21.0 2.9 2.6

Dishman Pharma Neutral 90 - 723 1,280 1,536 17.8 17.8 9.2 11.3 9.7 7.9 0.7 0.7 7.7 8.5 1.2 1.0GSK Pharma* Neutral 2,089 - 17,695 2,651 2,993 31.7 31.2 76.0 82.4 27.5 25.4 7.9 7.1 20.1 26.3 5.9 5.1

Indoco Remedies Buy 61 92 561 685 837 15.2 15.2 7.4 8.9 8.2 6.8 1.3 1.1 16.4 17.0 1.0 0.8Ipca labs Buy 400 475 5,049 2,850 3,474 20.7 20.7 29.2 36.6 13.7 10.9 3.2 2.6 26.1 26.1 1.9 1.6Lupin Accumulate 577 647 25,787 8,426 10,082 19.7 20.0 27.4 32.4 21.1 17.8 5.1 4.1 26.0 24.7 3.1 2.5

Orchid Chemicals Buy 112 178 789 2,117 2,434 17.7 17.7 16.7 22.2 6.7 5.1 0.6 0.6 9.5 11.5 1.0 0.8


August 23, 2012

Market Outlook

Stock Watch


10/12



Pharmaceuticals

Ranbaxy* Neutral 535 - 22,570 12,046 11,980 18.0 15.8 35.7 29.8 15.0 17.9 5.8 4.7 39.1 28.9 1.9 1.8Sun Pharma Neutral 665 - 68,739 9,752 12,134 41.6 41.6 26.0 28.2 25.6 23.6 4.8 4.1 20.3 18.8 6.3 4.9

Power

CESC Accumulate 319 342 3,982 5,218 5,644 24.2 23.8 44.6 47.6 7.2 6.7 0.8 0.7 11.0 10.6 1.1 1.1GIPCL Buy 65 77 988 1,557 1,573 29.3 28.7 10.8 11.0 6.1 5.9 0.6 0.6 10.8 10.2 1.1 0.9

NTPC Neutral 172 - 141,410 74,111 85,789 23.2 23.6 12.4 14.0 13.9 12.2 1.7 1.6 13.0 13.5 2.6 2.4

Real Estate Anant Raj Buy 46 78 1,357 657 875 52.0 56.1 8.4 12.7 5.5 3.6 0.3 0.3 6.3 8.9 3.3 2.5

DLF Neutral 215 - 36,484 9,878 12,033 44.7 46.1 9.6 13.4 22.4 16.0 1.4 1.4 6.4 8.7 6.2 5.1HDIL Buy 80 115 3,331 2,441 3,344 55.1 48.2 22.7 26.6 3.5 3.0 0.3 0.3 8.8 9.4 3.2 2.4

MLIFE Accumulate 349 396 1,425 813 901 26.2 26.6 32.0 37.1 10.9 9.4 1.1 1.0 10.4 11.0 2.1 1.8

Telecom

Bharti Airtel Neutral 249 - 94,445 79,542 87,535 30.9 32.2 10.3 15.0 24.2 16.5 1.8 1.6 7.2 9.6 1.9 1.6

Idea Cellular Neutral 76 - 25,006 22,988 25,333 26.4 26.9 3.5 4.9 21.8 15.5 1.8 1.6 8.1 10.2 1.5 1.3Rcom Neutral 54 - 11,208 21,553 22,494 31.0 30.7 3.5 4.5 15.6 12.2 0.3 0.3 1.9 2.4 2.1 1.8

zOthers

Abbott India Neutral 1,597 - 3,394 1,602 1,833 10.4 11.8 54.7 71.7 29.2 22.3 5.5 4.7 20.0 22.7 1.9 1.6Bajaj Electricals Buy 178 234 1,778 3,569 4,172 8.1 8.8 16.3 21.3 11.0 8.4 2.2 1.9 21.7 24.6 0.5 0.4

Cera Sanitaryware Neutral 354 - 447 396 470 16.7 16.5 28.0 33.2 12.6 10.7 2.6 2.1 23.8 23.1 1.3 1.1Cravatex Buy 440 785 114 302 364 5.7 6.0 49.0 71.0 9.0 6.2 2.7 1.9 2 9.8 3 0.7 0.5 0.4

CRISIL Neutral 923 - 6,477 982 1,136 34.3 34.3 34.3 40.0 26.9 23.1 12.2 9.7 50.9 46.9 6.2 5.2Finolex Cables Buy 39 61 595 2,334 2,687 8.8 9.3 7.6 10.2 5.1 3.8 0.7 0.6 13.7 16.1 0.2 0.1

Force Motors Buy 438 591 571 2,214 2,765 4.5 5.4 39.5 73.9 11.1 5.9 0.5 0.5 4.4 7.6 0.1 0.1Goodyear India Accumulate 340 370 785 1,543 1,646 8.1 9.2 32.3 39.4 10.5 8.6 2.1 1.8 21.7 22.4 0.3 0.2Graphite India Buy 81 113 1,586 2,158 2,406 18.1 18.9 12.4 14.0 6.5 5.8 0.9 0.8 14.0 14.3 0.9 0.7

Greenply Industries Buy 190 309 459 1,925 2,235 10.6 10.9 29.6 44.1 6.4 4.3 1.1 0.9 16.8 21.0 0.5 0.4HEG Accumulate 207 229 827 1,586 1,685 17.9 18.1 16.1 25.7 12.9 8.1 1.0 0.9 7.5 11.6 1.2 1.1

Hitachi Accumulate 113 130 260 868 977 3.9 6.6 2.7 10.9 41.4 10.5 1.5 1.3 3.7 13.6 0.4 0.3Honeywell Automation Buy 2,425 2,842 2,144 1,847 2,162 4.3 7.3 61.0 120.0 39.8 20.2 3.2 2.7 9.3 16.3 1.1 0.9

INEOS ABS India Accumulate 670 744 1,178 1,056 1,081 8.1 10.6 33.8 46.5 19.8 14.4 2.7 2.3 14.7 17.5 1.1 1.0ITD Cementation Neutral 232 - 267 1,451 1,669 12.3 12.4 32.4 41.5 7.2 5.6 0.6 0.6 9.4 10.9 0.6 0.6Jyothy Laboratories Accumulate 136 145 2,191 1,248 1,468 9.8 10.4 5.9 7.2 22.9 19.0 3.3 3.0 15.0 16.6 2.1 1.8

MCX Buy 1,163 1,440 5,929 553 624 65.3 66.3 62.5 72.0 18.6 16.1 5.1 4.4 27.5 27.4 7.7 6.4


August 23, 2012

Market Outlook

Stock Watch


11/12



zOthers

MRF Buy 10,996 12,884 4,663 11,804 12,727 10.4 10.5 1,289.9 1,431.3 8.5 7.7 1.7 1.4 21.3 19.4 0.5 0.5Page Industries Neutral 3,176 - 3,542 887 1,108 18.3 18.6 95.0 120.9 33.5 26.3 17.5 14.2 57.4 59.5 4.0 3.2

Relaxo Footwears Buy 576 684 692 1,019 1,208 12.3 13.0 51.0 68.4 11.3 8.4 3.0 2.2 30.3 30.2 0.8 0.7Sintex Industries Buy 60 79 1,632 4,751 5,189 16.3 16.6 13.6 15.8 4.4 3.8 0.6 0.5 12.9 13.2 0.7 0.6

Siyaram Silk Mills Buy 298 392 280 1,042 1,173 12.4 12.5 66.3 78.5 4.5 3.8 0.9 0.7 21.1 20.8 0.5 0.4S. Kumars Nationwide Buy 24 45 711 7,279 8,290 21.0 21.0 15.0 17.6 1.6 1.4 0.2 0.2 13.7 13.9 0.7 0.6

SpiceJet Buy 37 43 1,775 5,720 6,599 5.3 6.8 3.6 5.4 10.2 6.8 14.7 4.7 - - 0.4 0.4TAJ GVK Buy 65 108 407 300 319 35.8 36.2 7.9 9.1 8.2 7.1 1.1 1.0 13.9 14.4 1.7 1.4Tata Sponge Iron Buy 325 424 501 787 837 16.2 17.5 58.5 66.9 5.6 4.9 0.8 0.7 14.9 15.1 0.3 0.2

TVS Srichakra Accumulate 318 335 244 1,476 1,643 7.1 8.2 24.7 42.8 12.9 7.4 1.6 1.3 16.6 24.8 0.4 0.3United Spirits Neutral 947 - 12,386 10,289 11,421 13.5 14.3 31.0 42.9 30.5 22.1 2.4 2.2 8.1 10.3 1.9 1.7

Vesuvius India Neutral 355 - 721 560 611 16.1 17.0 24.7 28.8 14.4 12.4 2.1 1.9 15.8 16.2 1.2 1.1

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 22, 2012


August 23, 2012

Market Outlook

Stock Watch


12/12

August 23, 2012

Market Outlook

market outlook 230812

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