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Market Outlook

July 16, 2013

Dealers Diary
Indian markets are expected to open on a negative note tracking extremely weak
opening to SGX Nifty following RBIs move to increase short-term borrowing costs
in the money markets to prevent speculation in the currency market.

Domestic Indices

Chg (%)

(Pts)

(Close)

BSE Sensex

0.4

76 20,034

Nifty

0.4

22

6,031

US markets moved modestly higher over the course of the trading day on Monday,
adding to the strong gains posted last week. The strength that emerged on Wall
Street came following the release of a mixed batch of economic data, including a
report from the Commerce Department showing weaker than expected retail sales
growth. According to the Commerce Department, retail sales increased by 0.4% in
June against consensus estimates of 0.8%. Separately, the New York Federal
Reserve released a report showing that conditions for New York manufacturers
have continued to improve modestly in July (general business conditions index rose
to 9.5 in July from 7.8 in June).

MID CAP

0.9

54

6,103

SMALL CAP

0.8

46

5,783

BSE HC

0.5

43

9,429

BSE PSU

0.0

5,967

BANKEX

0.7

96 13,472

AUTO

0.6

63 10,635

METAL

0.5

36

7,783

OIL & GAS

0.7

63

8,863

Meanwhile, Indian markets rose modestly on Monday, with firm global cues and
lower than forecasted inflation data underpinning sentiments. Going ahead,
trading on Tuesday may be impacted by a release of another batch of economic
data, including reports on consumer prices, industrial production, and homebuilder
confidence.

BSE IT

(0.0)

(2)

6,824

Chg (%)

(Pts)

(Close)

Markets Today
The trend deciding level for the day is 19,997/ 6,017 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 20,110 20,186 / 6,052 6,074 levels. However, if NIFTY trades below
19,997 / 6,017 levels for the first half-an-hour of trade then it may correct up to
19,921 19,807/ 5,995 5,959 levels.
S2

S1

PIVOT

R1

R2

SENSEX

19,807
5,959

19,921
5,995

19,997
6,017

20,110
6,052

20,186
6,074

News Analysis

WPI inflation for June at 4.86%


RBI takes measures to tackle currency volatility
RBI penalizes 22 Banks for violating KYC norms
TTMT global sales decline by 10.2% yoy in June 2013
MM lays off temporary workers at Chakan plant
National Green Tribunal gives green signal to Sterlites copper smelter
Result Review: Exide Industries
Result Preview: Ashok Leyland

Sales
3,823
465

Net
(1,313)
5

MTD
(290)
(751)

YTD
71,016
(12,928)

` cr

Purch

Sales

Net

Open Interest

Index Futures
Stock Futures

1,675
1,765

1,889
1,528

(215)
237

14,145
28,924

Gainers / Losers
Gainers
Price (`)
chg (%)

HDIL

Company

42

7.9

Gitanjali Gems

Muthoot Fin

102

7.4

MMTC

Mahindra & Mah


Fin

282

6.5

TTK Prestige

Idea Cellular
Wockhardt

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0.2

3,607

FTSE

0.6

41

6,586

Nikkei

0.2

34 14,506

Hang Sang

0.1

26 21,303

Straits Times

0.0

3,237

Shanghai Com

1.0

20

2,059

Chg (%)

(Pts)

(Close)

0.3

0.1

$46.3

INFY

20 15,484

WIT

1.5

0.1

$8.0

IBN

(1.1)

(0.4)

$38.0

HDB

(0.5)

(0.2)

$37.2

BSE

NSE

Advances

1,061

596

Declines

1,249

710

140

87

Volumes (` cr)

FII Derivatives (July 15, 2013)

Company

NASDAQ

Unchanged

Net Inflows (July 12, 2013)


Purch
2,510
470

0.1

Advances / Declines

Refer detailed news analysis on the following page

` cr
FII
MFs

Dow Jones

Indian ADR

Indices
NIFTY

Global Indices

Losers
Price (`)
chg (%)
135

(5.0)

59

(4.9)

3,646

(4.8)

154

5.7

Financial Tech

733

(4.1)

1,007

5.4

United Phos

139

(3.1)

BSE

1,558

NSE

8,647

Market Outlook
July 16, 2013

WPI inflation for June at 4.86%


The Wholesale Price Index (WPI) based inflation positively remained below the
5.0% level for the third straight month. WPI inflation came in line with market
expectations at 4.86% in June 2013 as against 7.58% in June 2012. On a
sequential basis, WPI inflation came in a tad higher as compared to 4.70% in the
previous month owing to surge in primary articles (in particular vegetable
inflation). Headline inflation for April 2013 has been revised lower by 31bp to
4.8% owing to a revision in primary articles and fuel inflation.
Trends in Inflation for June 2013
Primary articles weightage 20.1%
Inflation in primary articles inched up to 8.1% during June 2013 as compared to
6.7% in the previous month, mainly owing to higher food inflation. Inflation in
food articles came in at 9.7%, a 4-month high, owing to the surge in vegetable
prices. Vegetables reported a 16.5% (and 21.6% mom) rise in prices and
contributed by about 43bp to the overall 4.9% headline inflation. The components
in this category reporting a strong increase in prices are ginger (rise of 264%) and
onion (rise of 114%).
Positively, inflation in pulses treaded downwards for the tenth straight month and
came in at 1.6%, almost a 2-year low. But inflation in cereals edged higher to
17.2% as compared to 16.0% in the previous month and 6.6% in June 2012 and
continued to contribute substantially to higher food inflation.
Fuel and power weightage 14.9%
Inflation in fuel and power moderated further to 7.1% during the month as
compared to 7.3% in May 2013 and 12.1% in June 2012. We note that Coal
Indias board has approved the revision in prices of certain grades of coal with
effect from June 2013. We also note that the average price of Indias basket of
crude oil has so far gone up to USD103.3/bbl in July 2013 as compared to about
USD101.2/bbl in the months of May and June 2013 each. Going ahead, the
revision
in
the
coal
price
index
and
pass-through of higher crude prices are likely to push up the fuel index as petrol,
diesel and ATF prices have already been revised higher.
Manufactured products weightage 65.0%
The trend of deceleration in inflation for manufactured products continued. It came
in at a 44-month low of 2.8% in June 2013 as compared to 3.1% in May 2013
and 5.4% in the corresponding period of the previous year. Core (non-food, nonfuel) inflation too continued to trend lower for the tenth straight month reflecting
benign global commodity prices and collapse in pricing power for manufacturers.
It decelerated to 2.1% during the month as compared to 2.4% in the previous
month and 5.2% in June 2012. Amongst this category, basic metal and metal
products declined for the third consecutive month by 2.3% as against double-digit
inflation in June 2013.
We believe that the concern on the INR is likely to continue weighing on the
Reserve Bank of India (RBI) monetary policy decision. Further, despite the
substantial moderation in WPI inflation, inflation at the retail level, as measured by
the Consumer Price Index (CPI), continues to remain elevated. CPI inflation came

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Market Outlook
July 16, 2013

in at nearly double-digits at 9.9% in June 2013 as compared to 9.3% in May 2013


owing to high food inflation. In light of these factors, the RBI is likely to maintain a
pause as regards its stance on the repo rate in its upcoming policy meeting on July
30, 2013.

RBI takes measures to tackle currency volatility


The RBI has decided to tackle liquidity in the system to shore up the currency. In a
surprise move on late Monday, it hiked the Marginal Standing Facility (MSF) by
200bp. The marginal standing facility is an emergency liquidity facility at which
banks borrow additional funds from the RBI. The MSF is fixed 100bp above the
repo rate and after the hike it now stands at 10.25%. RBI also limited the
borrowing of banks at the softer repo rate of 7.25 per cent to 1% of banks NDTL
ie `75,000cr per day with effect from Wednesday. The move has been taken with
a view to stop further currency slide as bond yields harden. The move is expected
to increase bond yields and thus the real effective interest rate in the economy,
thereby attracting foreign investors who were lured by rising bond yields in the US
amidst talk of bond purchase tapering.
The move is positive for the currency however it is likely to increase the cost of
funds for banks. So, we believe that banks are unlikely to pass on rate cut benefits
through monetary transmission. We believe that by taking this step, the RBI has
effectively signaled a long pause in its earlier stance of supporting growth through
easing rates.

RBI penalizes 22 Banks for violating KYC norms


RBI has completed its own investigation in response to Cobraposts money
laundering allegation on Banks. It has found these 22 banks guilty of violating
certain regulations/instructions (primarily KYC norms) and has imposed a
monetary penalty as tabulated below, ranging from `0.5-3.0cr. Earlier Axis Bank,
HDFC Bank and ICICI Bank were penalized in the range of `1-5cr for similar
violations. Based on its own investigations, the RBI has denied finding any prima
facie evidence suggesting money laundering.

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Market Outlook
July 16, 2013

Exhibit 1: Penalty levied by RBI on banks


Penalty
(in `cr)

Sr. No

Name of the bank

Bank of Baroda

12

Bank of India

13

Canara Bank
Central Bank of
India
Indian
Overseas
Bank
State Bank of India
The Federal Bank
Ltd.

14

4
5
6
7
8
9
10
11

Andhra Bank
Jammu & Kashmir
Bank Ltd.
Punjab and Sind
Bank
Punjab
National
Bank

Sr. No

Penalty
(in `cr)

Name of the bank


The Lakshmi Vilas Bank
Ltd.
United Bank of India
Dhanlaxmi Bank Ltd.
Oriental
Bank
Commerce

2.5
2.5
2

of

15

16

Vijaya Bank

17

Yes Bank Ltd.

18

ING Vysya Bank Ltd.

2.5

19

Kotak
Ltd.

2.5

20

Deutsche Bank A.G.

2.5

21

Development
Bank Ltd.

2.5

22

The Ratnakar Bank Ltd.

Mahindra

1.5
Bank

Credit

1.5

0.5

Source: RBI, Angel Research

TTMT global sales decline by 10.2% yoy in June 2013


Tata Motors' (TTMT) global sales continued to slide downwards in June 2013
(down 10.2% yoy to 84,458 units) led by the poor performance in the domestic
passenger and commercial vehicle segments. While, global commercial vehicle
sales posted a decline of 13.2% yoy; global passenger vehicle volumes declined by
7.1% yoy. On a mom basis though, volumes grew by 3.3% driven by growth in the
global commercial vehicle segment.
For the month of June 2013, Jaguar and Land Rover (JLR) registered lower-thanexpected growth of 8.2% yoy to 30,536 units driven by continued momentum in
the recently launched Jaguar models. Jaguar sales grew strongly by 61.5% yoy led
by the growth in the XF model driven by the introduction of the Sportbrake, AWD
and smaller engine variants. Land Rover sales however remained flat as the
volumes continue to be impacted due to the impending launch of the Range Rover
Sport. On a mom basis, volumes declined by 2.2% led by 12.4% decline in Jaguar
sales.
We retain our positive view on JLR and expect an ~13% volume CAGR
over FY2013-15E, driven by continued momentum in the luxury vehicle
market, coupled with the strong product launches that are lined up in FY2014
(expected to launch 8 new refreshes/models in FY2014) and the success of the
model launched in 4QFY2013. We maintain our Buy rating on the stock with a
sum-of-the-parts (SOTP) target price of `347.

MM lays off temporary workers at Chakan plant


According to media reports, Mahindra
temporary workers at its Chakan plant
demand. This is after the production cuts
at its plants (including Chakan) for up to

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& Mahindra (MM) has laid off 500


following slowdown in the automotive
that the company announced last week
eight days amidst slowdown in industry

Market Outlook
July 16, 2013

demand and increase in competitive activity. We believe that the productions cuts
announced by the company were essential given that the utility vehicle sales of the
company have slowed down in 1QFY2014. The temporary shutdown is expected
to enable the company to align the production in line with the market demand and
avoid unnecessary build up of inventory. We remain positive on MM given that the
tractor sales have registered a strong growth of ~25% in 1QFY2014 backed by
expectations of normal monsoon and better prospects for kharif crop. We expect
the growth in the tractor segment to remain strong in FY2014 and expect the
tractor segment to register a growth of ~10% and thereby offsetting the weakness
in the automotive segment to some extent. At `928, the stock is trading at 13.2x
FY2015 earnings. We maintain our Buy rating on the stock with a target price
of `1,103.

National Green Tribunal gives green signal to Sterlites copper


smelter
The National Green Tribunal in its final verdict rejected the plea of Tamil Nadu
Pollution Control Board (TNPCB) to close the Sterlite Industries Tuticorin copper
smelter and gave a green signal to Sterlite to continue the operations as it did not
find any severe environmental damage done by the company during its
investigation. This verdict is in line with our expectation that the closure of the
smelter was temporary and Sterlite had already re-commenced the operations last
month and hence we maintain our Accumulate rating of the stock with target price
of `100

Result Review
Exide Industries (CMP: `122/ TP: `141/ Upside: 14%)
Exide Industries (EXID) reported better-than-expected 1QFY2014 performance
driven by sharp expansion in operating margins led by continued growth in the
automotive replacement battery segment and also due to ~10% qoq decline in
lead prices. For 1QFY2014, top-line grew broadly in-line with our estimates and
stood at `1,627cr (up 4.8% yoy and 5.6% qoq) led by continued traction in the
automotive replacement battery segment. However, subdued OEM demand from
the two and four wheeler manufacturers impacted the overall top-line growth. The
growth in the industrial and home UPS battery segments too remained sluggish
during the quarter. On the operating front, EBITDA margins improved by 116bp
yoy (287bp qoq) to 16.1%, which was significantly ahead of our estimates of
13.6%. This was primarily on account of ~10% qoq decline in lead prices which
resulted in a 80bp yoy (277bp qoq) savings on the raw-material front.
Additionally, strong performance by the higher margin automotive replacement
segment too attributed to the strong margin performance. Led by a strong
operating performance, net profit posted a better-than-expected growth of 4.6%
yoy (8.6% qoq) to `159cr. At `122, the stock is trading at 13.5x FY2015 earnings.
We shall revise our estimates and release a detailed result note post our
interaction with the management during the earnings conference call. Until then,
we maintain our Buy rating on the stock with a target price of `141.

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Market Outlook
July 16, 2013

Y/E

Sales

OPM

PAT

EPS

ROE

P/E

P/BV

EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

(x)

(x)

(x)

FY2014E

7,044 14.2

662

7.8

18.0

15.7

2.7

8.3

1.2

FY2015E

8,052 14.5

771

9.1

18.1

13.5

2.3

6.8

1.0

Result Preview
Ashok Leyland (CMP: `17/ TP: `27/ Upside: 59%)
Ashok Leyland (AL) is slated to announce its 1QFY2014 results today. We expect
Ashok Leylands (AL) top-line to register an ~20% yoy decline in net sales to
`2,357cr following an ~21% yoy drop in volumes. On the operating front, we
expect EBITDA margins to witness a sharp contraction of ~350bp yoy to 4.5% for
the quarter due to adverse product-mix and lower utilization levels. As a result,
bottom-line is expected to register a loss of `74cr. At `17, the stock is trading at
7.8x FY2015E earnings. Currently, we have a Buy rating on the stock with a target
price of `27.
Y/E

Sales

OPM

March

(` cr)

(%)

FY2014E

14,038

7.6

FY2015E

16,442

8.7

PAT EPS

ROE

P/E

P/BV

EV/EBITDA

EV/Sales

(%)

(x)

(x)

(x)

(x)

278 1.1

6.2

16.7

1.4

5.3

0.4

594 2.2

12.5

7.8

1.3

3.7

0.3

(` cr)

(`)

Quarterly Bloomberg Brokers Consensus Estimate


Ashok Leyland (16/07/2013)
Particulars (` cr)

1QFY14E

1QFY13

y-o-y (%)

4QFY13

q-o-q (%)

2,405

2,941

(18)

3,648

(34)

93

241

(61)

198

(53)

(62)

67

Net Sales
EBITDA
EBITDA margins (%)
Net Profit

5
(192)

150

(141)

HDFC Bank (17/07/2013)


Particulars (` cr)
Net profit

1QFY14E

1QFY13

y-o-y (%)

4QFY13

q-o-q (%)

1,821

1,417

28

1,890

(4)

1QFY14E

1QFY13

y-o-y (%)

4QFY13

q-o-q (%)

466

427

555

(16)

IDBI Bank (18/07/2013)


Particulars (` cr)
Net profit

Kotak Mahindra Bank (18/07/2013)


Particulars (` cr)

1QFY14E

1QFY13

y-o-y (%)

4QFY13

q-o-q (%)

475

282

68

436

1QFY14E

1QFY13

y-o-y (%)

4QFY13

q-o-q (%)

Net sales

17,628

14,869

19

16,425

Net profit

3,744

3,281

14

3,597

Net profit

TCS Consolidated (18/07/2013)


Particulars (` cr)

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Market Outlook
July 16, 2013

Economic and Political News

RBI to factor in inflation while formulating policy: Subbarao


EGoM to consider power companys case for more gas
Finance Ministry to discuss ways to augment indirect tax collection
No political motive behind fuel subsidy cut to Bhutan: MEA

Corporate News

Sesa Goa set to resume mining in Karnataka


DBCorp launches Akola edition of Divya Marathi
GAIL plans to open office in Dubai to explore opportunities
New drug pricing may hit Dr Reddy's revenues

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

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Market Outlook
July 16, 2013
Result Calendar
Date

Company

July 16, 2013

Ashok Leyland

July 17, 2013

HDFC Bank

July 18, 2013

TCS, Axis Bank, Kotak Mah. Bank, IDBI Bank, D B Corp, Rallis, Mindtree, Infotech Enterprises, Honeywell Automation

July 19, 2013

HDFC, Bajaj Auto, Federal Bank, CRISIL, UCO Bank, Hexaware, NIIT

July 20, 2013

HT Media

July 21, 2013


July 22, 2013

Larsen & Toubro, Asian Paints, Blue Star

July 23, 2013

Tata Sponge

July 24, 2013

Cairn India, Dabur India, Central Bank

July 25, 2013

Thermax, FAG Bearings, MRF

July 26, 2013

Nestle, CESC

July 27, 2013

Force Motors

July 28, 2013


July 29, 2013

IDFC, Colgate, Godrej Consumer, Subros, Vesuvius India

July 30, 2013

Dr Reddy's, Ipca labs, Indoco Remedies

July 31, 2013

ICICI Bank, JSW Steel , Dishman Pharma

Source: Bloomberg, Angel Research

Global economic events release calendar


Date

Time

Country Event Description

Unit

Period

Bloomberg Data
Last Reported Estimated

July 16, 2013

2:00PM

UK

CPI (YoY)

% Change

Jun

2.70

3.00

2:30PM

Euro Zone Euro-Zone CPI (YoY)

Jun F

1.60

1.60

6:00PM

US

Consumer price index (mom)

% Change

Jun

0.10

0.30

6:45PM

US

Industrial Production

Jun

0.04

0.30

2:00PM

UK

Jobless claims change

% Change

Jun

(8.60)

(8.00)

6:00PM

US

Housing Starts

Thousands

Jun

914.00

960.00

6:00PM

US

Building permits

Thousands

Jun

985.00

1,000.00

July 18, 2013

6:00PM

US

Initial Jobless claims

Thousands

Jul 13

360.00

341.00

July 22, 2013

7:30PM

US

Existing home sales

Million

Jun

5.18

5.27

July 23, 2013

7:30PM

Euro Zone Euro-Zone Consumer Confidence

Value

Jul A

(18.80)

--

July 24, 2013

1:00PM

Germany PMI Services

Value

Jul A

50.40

--

1:00PM

Germany PMI Manufacturing

Value

Jul A

48.60

--

July 17, 2013

7:30PM

US

New home sales

Thousands

Jun

476.00

484.00

July 25, 2013

2:00PM

UK

GDP (YoY)

% Change

2Q A

0.30

--

July 30, 2013

11:00AM

India

RBI Repo rate

Jul 30

7.25

--

11:00AM

India

RBI Cash Reserve ratio

Jul 30

4.00

--

11:00AM

India

RBI Reverse Repo rate

Jul 30

6.25

--

7:30PM

US

Consumer Confidence

S.A./ 1985=100

Jul

81.40

--

1:25PM

Germany Unemployment change (000's)

Thousands

Jul

(12.00)

--

6:00PM

US

GDP Qoq (Annualised)

% Change

2Q A

1.80

--

11:30PM

US

FOMC rate decision

Jul 31

0.25

--

July 31, 2013

Source: Bloomberg, Angel Research

Market Outlook
July 16, 2013

Macro watch
Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

(%)
10.0

11.4
9.2

6.0
4.0

0.6

Apr-13

Feb-13

Source: MOSPI, Angel Research

Exhibit 3: Monthly WPI inflation trends

Exhibit 4: Manufacturing and services PMI

(%)

Mfg. PMI

58.0
8.0

(1.6)

Jan-13

Jun-12

4QFY13

3QFY13

2QFY13

1QFY13

4QFY12

3QFY12

2QFY12

1QFY12

4QFY11

3QFY11

2QFY11

1QFY11

4QFY10

3QFY10

(4.0)

(1.0) (0.6)

(0.7)

(2.0)

May-13

(0.1)

(2.0)

Dec-12

4.7 4.8

Source: CSO, Angel Research

Services PMI

8.1
7.3

8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0

7.2

7.3

7.3

7.3

56.0
5.7
4.8

4.7

4.9

54.0
52.0

Source: MOSPI, Angel Research

May-13

Apr-13

Mar-13

Feb-13

Jan-13

Dec-12

Nov-12

Oct-12

Sep-12

Aug-12

Jul-12

Jun-12

May-12

Apr-12

Source: Market, Angel Research; Note: Level above 50 indicates expansion

Exhibit 5: Exports and imports growth trends


(%)

48.0

Mar-12

Jun-13

May-13

Apr-13

Mar-13

Feb-13

Jan-13

Dec-12

Nov-12

Sep-12

Aug-12

50.0

Oct-12

9.0

1.9

2.0

5.1 5.4 5.2

Nov-12

6.0

3.4

2.5

2.0

Oct-12

6.5

Mar-13

7.5

Sep-12

7.7

Aug-12

8.6

8.4

8.0

9.9

Jul-12

9.5

9.3

2QFY10

12.0
11.0
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0

Exports yoy growth

Exhibit 6: Key policy rates


Repo rate

(%)
9.00

Imports yoy growth

15.0

Reverse Repo rate

CRR

8.00
7.00
6.00

Jun-13

May-13

Apr-13

Mar-13

Feb-13

Jan-13

Dec-12

Nov-12

Oct-12

Sep-12

Aug-12

Jul-12

0.0

5.00
4.00

Source: Bloomberg, Angel Research

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Source: RBI, Angel Research

Jun-13

May-13

Apr-13

Mar-13

Feb-13

Jan-13

Dec-12

Nov-12

Oct-12

Sep-12

Aug-12

(15.0)

Jul-12

3.00

Market Outlook
July 16, 2013

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

( )

Price ( )

( cr )

Sales ( cr )
FY14E

OPM(%)

EPS ( )

FY15E

FY14E

FY15E

FY14E

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

Agri / Agri Chemical


Rallis

Neutral

156

3,035

1,657

1,906

14.1

14.1

7.7

8.9

20.3

17.5

4.2

3.6

22.2

21.9

1.8

1.5

United Phosphorus

Buy

139

232

6,150

10,298

11,310

16.5

16.5

20.5

23.2

6.8

6.0

1.1

1.0

18.0

17.4

0.6

0.5

Amara Raja Batteries

Accumulate

256

285

4,375

3,418

3,892

14.5

14.5

18.5

20.4

13.9

12.6

3.3

2.7

26.6

23.8

1.3

1.1

Apollo Tyres

Neutral

67

3,392

13,852

15,487

11.4

11.5

12.8

14.9

5.2

4.5

0.9

0.7

17.5

17.3

0.4

0.4

Ashok Leyland

Buy

17

27

4,643

14,038

16,442

7.6

8.7

1.1

2.2

16.7

7.8

1.4

1.3

6.2

12.5

0.4

0.3

Automotive Axle#

Neutral

220

332

834

965

9.3

10.6

17.3

27.1

12.7

8.1

1.2

1.1

9.5

14.0

0.5

0.4

Bajaj Auto

Accumulate

1,901

2,096

55,019

23,005

26,460

18.0

18.5

118.8

139.7

16.0

13.6

5.8

4.6

40.4

37.7

2.0

1.7

Bharat Forge

Neutral

226

5,270

6,198

6,793

14.6

14.9

14.5

17.3

15.6

13.1

2.0

1.8

13.6

14.7

1.0

0.8

Bosch India*

Accumulate

8,599

9,213

26,999

9,821

11,394

17.0

17.3

373.5

438.7

23.0

19.6

4.1

3.5

18.0

17.9

2.4

2.0

CEAT

Buy

113

170

386

5,325

5,974

8.4

8.3

40.8

48.5

2.8

2.3

0.4

0.4

17.3

17.6

0.2

0.2

Exide Industries

Buy

122

141

10,408

7,053

8,061

14.2

14.5

7.8

9.1

15.6

13.4

2.7

2.3

18.1

18.2

1.2

1.0

FAG Bearings*

Neutral

1,447

2,405

1,525

1,742

14.5

15.7

88.4

109.5

16.4

13.2

2.4

2.0

15.5

16.5

1.4

1.2

Hero Motocorp

Accumulate

1,727

1,820

34,484

25,298

27,665

14.1

13.7

110.3

140.0

15.7

12.3

5.7

4.5

39.9

40.7

1.1

1.0

JK Tyre

Buy

107

154

438

7,972

8,754

7.1

7.1

37.5

44.0

2.8

2.4

0.4

0.4

16.4

16.6

0.3

0.3

Auto & Auto Ancillary

Mahindra and Mahindra Buy

928

1,103

57,149

45,254

51,197

11.4

11.7

61.2

70.2

15.2

13.2

3.2

2.7

22.7

21.9

1.0

0.9

1,448

1,822

43,728

47,923

55,002

11.2

10.9

106.6

121.4

13.6

11.9

2.0

1.8

16.1

15.8

0.7

0.6

218

12,795

28,442

31,493

7.5

7.8

12.5

14.8

17.4

14.7

4.3

3.4

27.5

25.8

0.6

0.5

Buy

22

27

131

1,426

1,624

10.0

9.9

4.9

6.8

4.5

3.2

0.4

0.4

10.0

12.7

0.4

0.3

Tata Motors

Buy

289

347

77,738 215,016 237,404

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

32

35

1,542

7,715

8,584

6.0

6.1

5.0

5.8

6.5

5.6

1.1

1.0

18.1

18.5

0.1

0.1

Maruti

Buy

Motherson Sumi

Neutral

Subros

Capital Goods
ABB*

Sell

602

461

12,762

8,073

9,052

5.5

6.9

11.5

16.9

52.3

35.5

4.8

4.6

9.3

13.1

1.6

1.3

BGR Energy

Buy

121

140

876

3,756

4,569

11.4

9.7

21.7

24.1

5.6

5.0

0.7

0.6

22.3

20.3

0.5

0.5

BHEL

Neutral

186

45,562

44,054

39,326

16.8

15.1

20.6

16.1

9.0

11.6

2.0

1.8

23.5

16.1

0.9

1.0

Blue Star

Buy

158

230

1,417

2,896

3,087

5.6

6.2

9.3

11.7

16.9

13.4

2.8

2.4

17.6

19.2

0.6

0.5

Crompton Greaves

Buy

89

117

5,706

13,446

15,272

6.7

7.6

6.6

8.9

13.4

10.0

1.5

1.3

11.4

14.0

0.5

0.5

Jyoti Structures

Neutral

20

164

3,360

3,597

9.7

9.8

7.3

10.2

2.7

2.0

0.6

0.5

8.8

11.4

0.3

0.3

KEC International

Buy

35

49

901

7,709

8,399

6.7

7.2

6.1

8.5

5.8

4.1

0.7

0.6

20.2

23.0

0.3

0.3

Thermax

Neutral

601

7,165

5,780

6,430

9.5

9.6

29.8

33.0

20.2

18.2

3.4

3.0

17.9

17.4

1.0

0.9

1,241

1,361

23,302

11,820

13,254

19.3

20.9

74.9

93.1

16.6

13.3

2.9

2.6

18.1

20.3

1.7

1.4

Cement
ACC

Accumulate

www.angelbroking.com

Market Outlook
July 16, 2013

Stock Watch
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

Cement
Ambuja Cements

Neutral

197

30,462

10,171

11,762

23.5

24.6

10.2

12.2

19.3

16.2

3.2

2.9

17.1

18.7

2.5

2.0

India Cements

Neutral

57

1,740

4,929

5,434

17.4

17.1

8.9

10.9

6.4

5.2

0.5

0.5

7.7

9.1

0.7

0.6

J K Lakshmi Cement

Buy

83

143

977

2,247

2,742

21.0

23.1

17.8

21.8

4.7

3.8

0.7

0.6

15.5

16.4

0.3

0.8

Madras Cements

Neutral

213

5,059

4,234

4,788

23.9

24.0

18.5

22.8

11.5

9.3

1.8

1.6

17.2

18.2

1.6

1.3

Shree Cement^

Neutral

4,510

15,713

6,607

7,520

27.5

26.7

322.8

374.3

14.0

12.1

3.5

2.8

27.8

25.6

1.7

1.3

UltraTech Cement

Neutral

1,944

53,306

21,947

25,049

23.8

23.8

106.1

119.8

18.3

16.2

3.0

2.6

17.7

17.3

2.5

2.2

59

84

933

1,928

2,234

21.0

21.5

6.0

7.4

9.9

8.0

0.9

0.9

10.5

10.8

1.9

1.8

171

1,715

1,824

2.4

6.2

(2.9)

(0.4)

(3.2)

(25.7)

0.4

0.4

0.5

0.5

Construction
Ashoka Buildcon

Buy

Consolidated Co

Neutral

IRB Infra

Buy

105

157

3,485

3,997

4,312

45.5

46.4

15.7

16.6

6.7

6.3

1.0

0.9

15.2

14.5

3.3

3.5

ITNL

Buy

151

230

2,942

7,444

8,041

27.4

28.9

29.8

32.1

5.1

4.7

0.7

0.6

14.9

14.2

2.5

2.5

IVRCL Infra

Buy

17

29

506

5,673

5,892

8.1

8.4

1.4

1.8

11.4

9.0

0.2

0.2

2.0

2.6

0.5

0.5

Jaiprakash Asso.

Buy

55

90

12,116

14,850

15,631

24.9

25.1

2.5

2.9

21.6

19.1

0.9

0.9

4.2

4.7

2.6

2.6

Larsen & Toubro

Buy

1,006

1,180

93,029

68,946

78,040

10.5

10.5

51.7

58.6

19.5

17.2

2.9

2.6

15.5

15.6

1.5

1.3

Nagarjuna Const.

Buy

29

42

747

6,167

6,945

8.0

8.2

2.7

3.6

10.9

8.0

0.3

0.3

2.7

3.6

0.5

0.5

Punj Lloyd

Neutral

33

1,103

12,954

14,740

9.9

9.9

0.5

0.9

65.4

35.6

0.4

0.4

0.6

1.1

0.5

0.5

Sadbhav Engg.

Buy

90

139

1,358

2,462

2,731

10.6

10.6

5.9

6.7

15.3

13.5

1.5

1.4

10.2

10.5

0.8

0.8

Simplex Infra

Buy

81

131

400

6,308

7,033

9.5

9.6

11.9

18.7

6.8

4.3

0.3

0.3

4.5

6.7

0.5

0.5

Unity Infra

Buy

25

41

187

2,146

2,339

13.7

13.8

11.0

11.5

2.3

2.2

0.2

0.2

9.3

9.0

0.6

0.6

Allahabad Bank

Buy

92

123

4,608

6,705

7,535

2.5

2.5

27.6

33.2

3.3

2.8

0.5

0.4

12.5

13.6

Andhra Bank

Neutral

83

4,619

5,195

5,834

2.7

2.7

19.2

23.1

4.3

3.6

0.6

0.5

12.2

13.3

Axis Bank

Buy

1,309

1,778

61,402

19,237

23,261

3.2

3.2

133.8

161.5

9.8

8.1

1.6

1.4

17.6

18.5

Bank of Baroda

Buy

591

761

24,877

16,287

18,707

2.2

2.3

120.6

144.6

4.9

4.1

0.7

0.6

15.0

16.0

Bank of India

Buy

232

270

13,813

14,459

16,176

2.3

2.2

55.2

68.2

4.2

3.4

0.6

0.5

13.7

15.1

Bank of Maharashtra

Buy

51

61

3,340

4,291

4,724

3.0

3.0

12.1

12.9

4.2

3.9

0.6

0.6

16.2

15.3

Canara Bank

Buy

361

423

15,997

12,045

13,495

2.1

2.2

76.7

86.4

4.7

4.2

0.7

0.6

14.1

14.2

Central Bank

Accumulate

64

69

6,696

8,406

9,546

2.5

2.5

12.6

18.7

5.1

3.4

0.6

0.6

10.6

14.3

Corporation Bank

Buy

344

436

5,257

5,554

6,156

2.0

2.0

94.9

104.9

3.6

3.3

0.5

0.5

14.3

14.2

Dena Bank

Accumulate

71

79

2,499

3,255

3,623

2.3

2.4

22.0

24.9

3.2

2.9

0.5

0.4

14.7

14.7

Federal Bank

Accumulate

400

455

6,832

2,802

3,275

2.9

2.9

49.8

56.6

8.0

7.1

1.0

0.9

12.7

13.1

Financials

www.angelbroking.com

Market Outlook
July 16, 2013

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

( )

Price ( )

( cr )

Sales ( cr )

OPM(%)

EPS ( )

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

Financials
HDFC

Accumulate

849

904

132,007

8,573

10,142

3.6

3.6

37.0

43.6

23.0

19.5

4.7

4.2

30.0

30.3

HDFC Bank

Accumulate

695

752

166,053

27,560

33,766

4.6

4.6

36.3

45.1

19.1

15.4

3.9

3.2

21.9

22.8

ICICI Bank

Buy

1,063

1,454

122,666

26,119

30,474

3.1

3.2

86.2

99.5

12.3

10.7

1.7

1.5

15.7

16.2

IDBI Bank

Accumulate

75

80

9,956

9,416

10,392

2.0

2.0

19.8

22.8

3.8

3.3

0.5

0.4

12.9

13.5

Indian Bank

Buy

110

141

4,738

6,077

6,845

2.9

3.0

35.2

41.0

3.1

2.7

0.4

0.4

14.1

14.8

IOB

Neutral

51

4,676

8,028

9,204

2.4

2.6

12.5

19.7

4.0

2.6

0.4

0.3

9.1

13.1

J & K Bank

Neutral

1,278

6,196

3,101

3,427

3.6

3.6

215.5

210.3

5.9

6.1

1.1

1.0

19.9

16.9

LIC Housing Finance

Buy

238

298

11,993

2,113

2,525

2.3

2.3

25.4

29.2

9.4

8.1

1.7

1.4

18.4

18.3

Oriental Bank

Buy

201

239

5,870

6,790

7,676

2.6

2.7

55.7

62.3

3.6

3.2

0.5

0.4

12.8

12.9

Punjab Natl.Bank

Buy

662

883

23,393

20,914

23,879

3.3

3.4

152.4

176.2

4.3

3.8

0.7

0.6

16.2

16.5

South Ind.Bank

Neutral

St Bk of India

Buy

Syndicate Bank

Accumulate

UCO Bank

Reduce

Union Bank
United Bank

23

3,076

1,795

2,054

2.8

2.8

4.0

4.3

5.8

5.3

1.0

0.9

17.2

16.5

1,916

2,518

131,068

66,417

76,734

3.0

3.0

227.4

284.8

8.4

6.7

1.2

1.1

15.4

17.1

119

136

7,178

7,125

8,188

2.6

2.6

27.4

27.9

4.4

4.3

0.7

0.6

16.2

14.6

70

63

5,246

6,545

6,859

2.7

2.6

14.8

15.7

4.7

4.4

0.9

0.7

14.4

13.6

Buy

180

243

10,760

11,101

12,543

2.6

2.6

39.3

47.4

4.6

3.8

0.6

0.6

14.1

15.2

Buy

47

58

1,754

3,386

3,884

2.3

2.5

12.4

20.0

3.8

2.3

0.4

0.4

10.0

14.7

Vijaya Bank

Neutral

48

2,359

2,714

3,046

1.9

2.0

9.2

10.8

5.2

4.4

0.6

0.5

10.7

11.5

Yes Bank

Neutral

501

18,004

4,451

5,526

2.8

2.8

43.0

49.7

11.6

10.1

2.5

2.1

23.9

22.8

Asian Paints

Neutral

4,814

46,171

12,332

14,524

16.5

16.3

141.6

162.7

34.0

29.6

10.8

8.5

35.4

32.2

3.6

3.0

Britannia

Neutral

681

8,150

6,417

7,502

6.1

6.3

21.3

25.5

32.0

26.7

10.4

8.3

35.7

34.6

1.3

1.1

Colgate

Neutral

1,453

19,758

3,588

4,130

20.5

20.9

44.2

51.8

32.9

28.1

32.0

23.3

108.6

96.2

5.3

4.6

Dabur India

Neutral

157

27,340

7,183

8,340

16.8

16.8

5.4

6.3

29.2

24.9

11.4

8.8

41.5

40.1

3.8

3.2

GlaxoSmith Con*

Neutral

4,890

20,566

3,617

4,259

16.1

16.4

122.2

148.7

40.0

32.9

12.5

10.0

34.1

33.7

5.2

4.4

Godrej Consumer

Neutral

869

29,573

7,801

9,017

16.2

15.9

25.1

29.7

34.6

29.3

7.5

6.2

24.9

24.2

3.9

3.3

HUL

Neutral

614

132,733

29,167

33,164

13.6

13.7

17.1

18.4

35.9

33.4

34.5

25.0

113.4

87.0

4.4

3.9

ITC

Neutral

352

278,330

34,294

39,991

36.8

37.0

11.3

13.3

31.2

26.4

10.3

8.3

36.1

34.9

7.8

6.6

Marico

Neutral

218

14,038

5,273

6,044

14.8

14.9

7.3

8.7

30.0

25.1

5.9

4.8

21.4

21.0

2.7

2.3

Nestle*

Neutral

5,565

53,652

9,447

10,968

22.1

22.3

127.5

154.1

43.7

36.1

21.8

15.8

57.7

50.7

5.7

4.9

Tata Global

Neutral

154

9,526

8,069

8,957

9.8

9.7

7.8

8.6

19.7

18.0

2.4

2.3

9.5

9.7

1.2

1.0

FMCG

www.angelbroking.com

Market Outlook
July 16, 2013

Stock Watch
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

874

60,906

29,424

32,837

22.6

22.0

59.5

63.3

14.7

13.8

3.6

3.0

24.6

21.7

1.9

1.6

99

105

2,965

2,158

2,374

19.6

19.8

10.7

11.7

9.3

8.5

2.1

1.8

23.0

22.3

1.2

1.1

IT
HCL Tech^

Neutral

Hexaware*

Accumulate

Infosys

Neutral

2,742

157,447

45,153

48,993

27.6

26.8

170.7

187.5

16.1

14.6

3.3

2.9

20.8

19.5

2.9

2.5

Infotech Enterprises

Neutral

182

2,033

2,037

2,254

17.9

17.7

21.2

22.6

8.6

8.1

1.3

1.1

15.2

14.1

0.6

0.5

KPIT Cummins

Accumulate

127

144

2,461

2,614

2,923

17.2

16.8

13.2

14.4

9.7

8.8

1.7

1.4

18.5

16.7

0.9

0.7

Mindtree

Neutral

915

3,803

2,707

2,978

20.3

20.2

87.4

97.0

10.5

9.4

2.2

1.8

21.8

19.5

1.1

0.9

Mphasis&

Neutral

409

8,595

6,372

6,852

18.0

18.2

38.0

43.5

10.8

9.4

1.5

1.3

14.3

14.2

0.9

0.7

NIIT

Buy

19

30

315

1,144

1,267

9.0

9.1

4.3

5.4

4.5

3.6

0.5

0.4

10.3

12.0

0.1

Persistent

Accumulate

522

565

2,088

1,505

1,677

25.9

26.2

53.6

59.7

9.7

8.8

1.7

1.5

17.7

16.7

1.0

0.8

TCS

Neutral

1,641

321,258

74,795

84,926

28.8

28.7

82.2

91.5

20.0

18.0

6.2

5.1

30.8

28.1

4.1

3.5

Tech Mahindra

Accumulate

1,112

1,250

25,818

8,102

8,709

19.7

19.2

93.7

101.5

11.9

11.0

2.2

1.8

21.2

18.9

3.2

2.9

Wipro

Neutral

382

94,129

41,659

45,137

21.2

21.4

27.7

29.9

13.8

12.8

2.8

2.4

20.5

19.0

1.7

1.5

D B Corp

Buy

236

290

4,325

1,750

1,925

25.1

26.6

14.2

16.8

16.6

14.1

3.6

3.0

23.4

23.4

2.4

2.1

HT Media

Buy

97

117

2,279

2,205

2,380

15.1

15.6

8.3

9.1

11.7

10.7

1.3

1.2

11.5

11.4

0.7

0.6

Jagran Prakashan

Buy

86

107

2,840

1,664

1,825

20.9

23.0

6.4

7.8

13.3

11.0

2.7

2.4

21.0

23.1

1.8

1.6

PVR

Neutral

334

1,323

1,359

1,540

17.3

17.4

17.2

21.6

19.4

15.5

1.9

1.8

10.3

12.0

1.4

1.2

Sun TV Network

Neutral

419

16,506

2,287

2,551

69.7

70.5

20.0

23.3

20.9

18.0

5.2

4.5

26.4

27.3

6.9

6.0

Bhushan Steel

Neutral

464

10,519

13,794

17,088

30.9

33.5

49.3

66.6

9.4

7.0

1.0

0.9

11.3

13.5

2.4

1.9

Coal India

Buy

293

345

184,754

72,174

76,311

33.3

28.4

28.4

30.9

10.3

9.5

2.8

2.4

37.6

36.2

1.7

1.6

Electrosteel Castings

Buy

13

18

426

1,976

2,017

11.8

12.7

1.3

2.6

10.4

5.0

0.1

0.1

2.6

5.2

0.5

0.1

GMDC

Buy

108

155

3,449

1,920

2,239

53.2

52.9

21.6

25.0

5.0

4.3

1.1

0.9

25.1

23.8

1.3

0.9

Hind. Zinc

Buy

107

145

45,105

12,358

13,659

51.4

51.6

16.0

17.6

6.7

6.1

1.2

1.0

19.4

18.4

1.4

0.9

Hindalco

Neutral

105

20,180

89,352

93,672

8.8

9.2

13.4

15.0

7.9

7.0

0.6

0.5

7.3

7.6

0.6

0.5

JSW Steel

Neutral

591

14,275

47,613

48,385

17.4

18.8

81.8

109.6

7.2

5.4

0.8

0.7

11.1

13.4

0.6

0.5

MOIL

Buy

203

248

3,417

1,010

1,046

46.5

47.6

26.8

28.8

7.6

7.1

1.1

1.0

15.4

14.7

1.0

0.7

Monnet Ispat

Buy

123

193

786

2,326

2,709

21.4

23.1

33.3

43.1

3.7

2.9

0.3

0.3

8.3

9.9

1.4

1.0

Nalco

Neutral

NMDC

Buy

SAIL

Neutral

Media

Metals & Mining

www.angelbroking.com

31

7,861

7,656

7,988

13.1

13.5

2.6

2.6

12.0

11.6

0.6

0.6

5.5

5.5

0.5

0.5

108

140

42,918

10,610

11,400

66.3

64.2

15.6

16.1

7.0

6.7

1.4

1.3

21.3

19.9

1.9

1.8

48

19,990

44,060

54,786

9.4

11.5

5.2

7.2

9.3

6.8

0.5

0.5

5.2

6.8

0.7

0.6

Market Outlook
July 16, 2013

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

( )

Price ( )

( cr )

Sales ( cr )
FY14E

OPM(%)

EPS ( )

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

FY15E

Metals & Mining


Sesa Goa

Accumulate

156

166

13,575

3,742

4,426

32.9

32.8

30.0

29.8

5.2

5.2

0.7

0.6

14.3

12.5

4.4

3.7

Sterlite Inds

Accumulate

91

100

30,649

44,462

45,568

23.2

24.7

18.1

20.2

5.0

4.5

0.5

0.5

11.3

11.4

0.6

0.6

Tata Steel

Buy

257

378

24,994 140,917 151,537

9.7

10.8

30.9

47.6

8.3

5.4

0.8

0.7

9.6

13.4

0.6

0.5

Sarda

Buy

97

153

347

1,494

1,568

19.1

20.3

31.3

36.5

3.1

2.7

0.4

0.3

11.8

12.4

0.6

0.5

Prakash Industries
Godawari Power and
Ispat
Oil & Gas

Buy

31

40

410

2,615

2,776

12.1

12.0

9.8

10.4

3.1

2.9

0.2

0.2

6.5

6.5

0.4

0.4

Buy

74

102

242

2,344

2,509

14.9

15.4

38.7

47.0

1.9

1.6

0.2

0.2

12.3

12.9

0.5

0.4

Cairn India

Accumulate

303

345

57,796

16,482

16,228

69.4

53.3

53.3

49.6

5.7

6.1

0.9

0.8

16.5

13.6

2.2

1.8

GAIL

Neutral

323

41,010

52,102

52,876

15.7

16.1

34.1

35.7

9.5

9.1

1.5

1.3

16.4

15.3

0.3

0.2

ONGC

Buy

296

387

253,071 170,063 198,461

36.3

38.3

34.7

41.9

8.5

7.1

1.5

1.3

18.3

19.5

1.2

0.9

Reliance Industries

Neutral

896

289,276 397,546 421,695

9.4

8.6

75.0

76.4

11.9

11.7

1.3

1.2

12.4

11.4

0.7

0.6

Gujarat Gas*

Neutral

198

2,544

3,707

3,850

11.7

12.4

23.7

25.7

8.4

7.7

2.3

2.0

29.6

28.2

0.6

0.5

Indraprastha Gas

Neutral

294

4,110

3,700

4,218

23.4

22.8

26.7

30.4

11.0

9.7

2.3

1.9

22.7

21.8

1.2

1.0

Petronet LNG
Gujarat State Petronet
Ltd.
Pharmaceuticals

Buy

132

167

9,904

40,356

40,872

5.8

6.4

15.0

16.7

8.8

7.9

1.9

1.6

23.0

21.5

0.3

0.3

Neutral

60

3,348

1,171

1,287

91.9

91.9

10.1

11.3

5.9

5.3

1.0

0.8

17.3

16.8

Alembic Pharma

Reduce

156

139

2,939

1,736

2,008

17.1

18.9

10.7

13.9

14.6

11.2

4.6

3.4

35.0

34.7

1.8

1.5

Aurobindo Pharma

Buy

190

271

5,532

6,641

7,637

15.9

15.9

17.3

20.6

11.0

9.2

1.8

1.5

19.5

18.9

1.3

1.1

Aventis*

Neutral

2,445

5,631

1,682

1,917

16.6

16.6

92.4

99.1

26.5

24.7

3.7

3.7

15.7

14.8

3.0

2.4

Cadila Healthcare

Buy

778

929

15,919

7,280

8,640

15.5

15.7

38.3

46.5

20.3

16.7

4.4

3.6

23.5

23.5

2.5

2.1

Cipla

Buy

408

477

32,755

9,274

10,796

23.1

23.1

21.0

23.8

19.4

17.1

3.1

2.7

17.2

16.8

3.3

2.7

Dr Reddy's

Accumulate

2,354

2,535

40,016

13,377

15,350

20.4

20.1

112.3

126.8

21.0

18.6

4.5

3.7

23.5

21.8

3.1

2.7

Dishman Pharma

Buy

64

168

516

1,394

1,534

22.5

22.4

15.0

16.8

4.3

3.8

0.5

0.4

11.0

11.2

1.0

0.8

GSK Pharma*

Neutral

2,571

21,775

2,854

3,145

28.6

28.6

76.6

83.3

33.6

30.9

10.1

9.1

31.1

31.0

6.8

6.1

Indoco Remedies

Accumulate

70

78

646

760

922

15.3

15.3

6.1

7.8

11.5

9.0

1.4

1.3

12.9

14.7

1.1

0.9

Ipca labs

Neutral

697

8,798

3,243

3,826

20.5

21.5

36.0

44.4

19.4

15.7

4.5

3.6

26.0

25.4

2.9

2.4

Lupin

Neutral

875

39,182

11,641

13,933

21.3

21.3

34.8

41.8

25.2

20.9

5.9

4.7

26.2

24.8

3.4

2.8

Ranbaxy*

Accumulate

341

384

14,419

11,400

12,060

10.5

12.5

17.5

22.5

19.5

15.2

3.1

2.7

17.0

19.1

1.2

1.1

Sun Pharma

Neutral

1,108

114,545

13,509

15,846

41.0

41.0

33.0

39.8

33.6

27.8

6.8

5.6

22.0

22.0

7.9

6.6

Power
GIPCL

Buy

NTPC

Accumulate

www.angelbroking.com

68

78

1,022

1,444

1,482

33.4

33.0

13.7

14.8

4.9

4.6

0.6

0.5

12.3

12.0

0.8

0.5

142

163

117,292

76,734

86,680

24.5

24.3

13.4

14.5

10.6

9.8

1.3

1.2

12.8

12.7

2.2

2.1

Market Outlook
July 16, 2013

Stock Watch
Company Name

Reco

CMP

Target

Mkt Cap

Sales ( cr )

OPM(%)

EPS ( )

( )

Price ( )

( cr )

FY14E

FY15E

FY14E

FY15E

FY14E

PER(x)

P/BV(x)

RoE(%)

FY15E

FY14E

FY15E

FY14E

FY15E

FY14E

EV/Sales(x)

FY15E

FY14E

FY15E

Real Estate
DLF

Buy

178

236

31,759

8,293

9,622

36.5

36.1

5.7

6.7

31.3

26.5

1.1

1.1

3.7

4.1

5.9

5.0

MLIFE

Accumulate

444

476

1,813

888

1,002

30.6

30.6

38.8

43.4

11.4

10.2

1.3

1.2

11.2

11.4

2.6

2.3

Bharti Airtel

Neutral

315

125,798

85,489

94,229

31.9

31.9

10.2

14.6

30.8

21.5

2.2

2.0

7.2

9.4

2.1

1.9

Idea Cellular

Neutral

154

51,027

25,640

28,459

26.9

27.2

4.0

4.9

38.4

31.1

3.2

2.9

8.4

9.4

2.4

2.1

Rcom

Neutral

146

30,217

22,751

24,628

30.9

31.3

3.4

5.3

42.7

27.8

0.9

0.9

2.1

3.1

2.9

2.6

Telecom

Others
Abbott India*

Buy

1,416

1,659

3,009

1,863

2,081

11.8

12.4

71.2

83.0

19.9

17.1

4.0

3.4

21.6

21.5

1.4

1.1

Bajaj Electricals

Buy

189

237

1,888

3,885

4,472

5.4

7.2

11.0

19.7

17.3

9.6

2.3

2.0

13.5

20.3

0.5

0.4

Cera Sanitaryware

Buy

500

613

633

631

797

14.5

13.7

42.6

51.1

11.7

9.8

2.8

2.2

26.5

25.3

1.0

0.8

Cravatex

Buy

280

459

72

248

284

6.5

7.3

27.2

38.2

10.3

7.3

1.6

1.4

15.7

18.5

0.5

0.4

Finolex Cables

Buy

57

68

875

2,563

2,899

9.8

9.8

10.1

11.3

5.7

5.1

0.8

0.7

14.3

13.8

0.3

0.2

Force Motors

Buy

252

437

328

2,304

2,649

3.1

3.6

28.0

43.7

9.0

5.8

0.3

0.3

3.1

4.7

0.1

0.1

Goodyear India*

Accumulate

310

345

714

1,458

1,542

8.3

9.0

32.3

37.0

9.6

8.4

1.7

1.5

19.5

19.3

0.3

0.3

Hitachi

Buy

124

177

337

1,053

1,169

6.3

7.1

13.8

17.7

9.0

7.0

1.3

1.1

15.0

16.7

0.4

0.3

Honeywell Automation* Neutral

2,437

2,155

1,842

2,131

7.7

7.8

112.4

132.4

21.7

18.4

2.7

2.4

13.3

13.8

1.1

0.9

IFB Agro

Buy

150

198

135

495

651

12.7

12.9

29.3

39.5

5.1

3.8

0.7

0.6

15.4

17.6

0.4

0.3

ITD Cementation

Buy

136

234

157

1,430

1,573

11.1

11.0

19.1

26.9

7.2

5.1

0.4

0.4

5.4

7.1

0.5

0.5

Jyothy Laboratories

Accumulate

178

199

2,962

1,220

1,476

13.3

13.6

5.5

9.0

32.4

19.7

3.7

3.3

12.1

17.7

2.8

2.2

MRF

Accumulate

12,852

14,416

5,451

11,799

12,587

14.1

13.5 1,792.4 1,802.0

7.2

7.1

1.5

1.3

23.5

19.2

0.6

0.5

Page Industries

Neutral

4,512

5,032

1,057

1,282

19.4

19.6

124.8

153.7

36.2

29.4

17.9

13.2

56.3

51.8

4.9

4.0

Relaxo Footwears

Neutral

757

908

1,146

1,333

10.9

11.4

45.9

60.9

16.5

12.4

3.5

2.8

23.0

24.6

1.0

0.8

Siyaram Silk Mills

Buy

245

343

230

1,158

1,322

11.9

11.9

72.9

85.7

3.4

2.9

0.6

0.5

19.9

19.6

0.4

0.4

Styrolution ABS India*

Buy

415

617

730

1,068

1,223

9.6

9.6

38.1

44.1

10.9

9.4

1.5

1.3

14.5

14.7

0.7

0.6

TAJ GVK

Buy

59

108

369

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

Tata Sponge Iron

Buy

268

371

413

814

849

17.0

17.6

64.6

69.2

4.2

3.9

0.6

0.5

14.5

13.8

0.1

(0.1)

TTK Healthcare

Buy

543

686

422

435

516

6.2

7.1

24.3

33.3

22.4

16.3

3.7

3.2

17.6

20.8

0.8

0.7

Tree House

Neutral

292

1,050

153

194

53.0

52.8

12.4

15.6

23.6

18.7

2.8

2.5

11.8

13.1

7.0

5.4

TVS Srichakra

Buy

United Spirits

Neutral

Vesuvius India*

Buy

177

230

136

1,591

1,720

6.1

6.4

24.5

38.3

7.2

4.6

0.8

0.7

10.9

15.9

0.3

0.3

2,671

38,815

12,294

14,162

12.0

12.0

42.1

67.7

63.4

39.5

4.5

4.0

9.1

10.7

3.5

3.0

365

439

741

600

638

20.1

19.4

35.7

36.6

10.2

10.0

1.8

1.6

19.4

17.1

1.0

0.9

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on July 15, 2013

www.angelbroking.com

Market Outlook
July 16, 2013

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
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