Market Outlook Market Outlook: Dealer's Diary

Market Outlook
May 24, 2012
Dealers Diary
The domestic markets are expected to open in green tracking positive development
on domestic front. The government has raised petrol price by massive (~10%)
`7.54/litre in order to recover losses to oil marketing companies (OMCs), which
were selling petrol at lower prices. With this petrol price hike, the under-recovery
(loss) due to selling petrol price at subsidized rates is expected to be lower by
~`7,000cr for FY2013, positive for OMCs and ONGC. This unprecedented steep
increase in petrol prices by the government signals its intention to lower fiscal
burden through bold policy measures.
Domestic Indices
US markets, after showing a notable move to the downside in morning trading on

Wednesday due to continued worries about the financial situation in Europe, which
came as European leaders held a closely watched summit in Brussels. However,
stocks staged a significant recovery over the latter part of the trading day which
was attributed to reports out of the European summit regarding the steps that the
leaders are willing to take to boost economic growth. European markets finished
solidly to the downside on Wednesday reversing the gains from the previous two
trading days on the back of concerns over the situation in Greece.
Indian shares fell on Wednesday, extending the previous session's sharp sell-off, as
the rupee continued its downward spiral, breaching the 56 mark against the dollar
amid a weaker euro and persisting domestic concerns over slowing economic
growth and a widening fiscal deficit.
Markets Today
The trend deciding level for the day is 15,932 / 4,831 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 16,018 16,087 / 4,858 4,881 levels. However, if NIFTY trades below
15,932 / 4,831 levels for the first half-an-hour of trade then it may correct up to
15,863 15,777 / 4,808 4,781 levels.
Indices
S2
S1
PIVOT
R1
R2
SENSEX
15,777
4,781
15,863
4,808
15,932
4,831
16,018
4,858
16,087
4,881
NIFTY
News Analysis
Government raises petrol price by `7.54/litre

4QFY2012 Result Reviews BHEL, Tech Mahindra, Tata Global, LMW, JLL
4QFY2012 Result Previews Madras Cements, TVS Motor
` cr
Purch
Sales
Net
MTD
YTD
FII
1,330
1,389
(59)
(389)
43,072
310
206
104
39
(6,062)
FII Derivatives (May 23, 2012)

` cr
Purch
Sales
Net
Open Interest
Index Futures
1,902
2,715
(812)
11,935
Stock Futures
1,975
1,798
177
21,958
Gainers / Losers
Company
Losers
Price (`)
chg (%)
Wockhardt
809
12.7
Havells India
569
6.2
Amtek Auto-$
20
4.1
Jain Irrigation
71
(4.4)
322
4.1
Bharti Airtel
282
(4.3)
74
3.2
Manappuram Fin
22
(4.1)
GMR Infra
Jet Air India
India Cements
www.angelbroking.com
Company
Voltas
(Close)
(0.5)
(78.3) 15,948
Nifty
(0.5)
(24.9)
4,836
MID CAP
(0.4)
(24.0)
5,830
SMALL CAP
(0.6)
(36.5)
6,238
BSE HC
0.2
10.0
6,612
BSE PSU
(0.1)
(4.3)
6,612
BANKEX
(0.6)
(60.7) 10,618
AUTO
(0.7)
(62.4)
9,140
METAL
(0.7)
(71.6)
9,862
OIL & GAS
(0.4)
(27.0)
7,435
0.2
8.8
5,480
(Pts)
(Close)
BSE IT
Global Indices
Dow Jones
Chg (%)
(0.1)
11.0
2,850
FTSE
(2.5) (136.9)
5,266
Nikkei
(2.0) (172.7)
8,557
Hang Seng
(1.3) (253.0) 18,786
Straits Times
(1.5)
(43.3)
2,780
Shanghai Com
(0.4)
(9.9)
2,363
Chg (%)
(Pts)
(Close)
INFY
(1.1)
(0.5)
$42.4
WIT
(0.5)
(0.0)
$8.7
IBN
(1.2)
(0.4)
$28.6
0.5
0.1
$28.6
NASDAQ
Indian ADRs
HDB
Advances / Declines
0.4
(6.7) 12,496
BSE
NSE
Advances
1,051
482
Declines
1,687
923
106
82
Volumes (` cr)
Net Inflows (May 21, 2012)
Gainers
(Pts)
BSE Sensex
Unchanged
Refer detailed news analysis on the following page
MFs
Chg (%)
Price (`)
chg (%)
91
(4.6)
105
(4.5)
BSE
1,821
NSE
8,439
Market Outlook
May 24, 2012
Government raises petrol price by `7.54/litre

The government has raised petrol price by massive (~10%) `7.54/litre in order to
recover losses to oil marketing companies (OMCs), which were selling petrol at
lower prices. Without this hike, OMCs would stand to lose `8,000cr in FY2013
(compared to `4,870cr in FY2012) considering the 10% depreciation in INR
against USD during the past three months. With this petrol price hike, the underrecovery (loss) due to selling petrol price at subsidized rates is expected to be lower
by ~`7,000cr for FY2013, which in turn would lower subsidy burden on upstream
oil companies such as ONGC and GAIL. Hence it would be positive for OMCs
and ONGC. However, at current crude prices, OMCs continue to lose `512cr per
day mainly due to selling diesel, kerosene and domestic LPG at lower prices.
Nevertheless, the unprecedented steep increase in petrol prices by the government
signals its intention to lower fiscal burden through bold policy measures. Any
further steps by the government such as hike in prices of diesel, kerosene and LPG
could be positive for OMCs and upstream companies.
Result Reviews
BHEL (CMP: `208 / TP: - / Upside -)
BHEL announced a mixed set of 4QFY2012 results. The company reported a 6.6%
increase in its top line to `19,589cr, lower than our expectation of `20,954cr. The
quarter saw strong EBITDA margin expansion by 184bp yoy to 25.2%, which led to
a 15% yoy increase in EBITDA, higher than our expectation. PAT for the quarter
grew by 20.8% yoy to `3,380cr (`2,798cr), which was also higher than our
expectation. At the CMP of `208, the stock is trading at 8.8x and 8.6x on our
FY2013E and FY2014E earnings estimates, respectively. Currently, we remain our
Neutral view on the stock. We will revise our estimates and release a detailed
results review shortly.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
46,344
18.3
5,762
23.5
21.3
8.8
1.8
5.6
1.0
FY2014E
46,916
18.6
5,897
24.1
18.9
8.6
1.5
4.8
0.9
Tech Mahindra (CMP: `612/ TP: Under review/ Upside: -)

Tech Mahindra reported a muted set of 4QFY2012 results. Dollar revenue came in
at US$281.6mn, down 2.5% qoq, due to a decline in revenue from two clients in
India because of cancellation of 2G license. Dollar revenue from BT grew by 3.1%
qoq because BT did some one-time discretionary spend during the quarter.
Revenue from non-BT accounts declined by 5.5% qoq. In rupee terms, revenue
came in at `1,419cr, down 1.8% qoq. EBITDA margin grew by 63bp qoq to
16.8%, aided by increased utilization level to 74% in 4QFY2012 from 73% in
3QFY2012. The company booked exceptional loss of `68cr in the quarter as
provisions made for uncovered dues from the above mentioned two parties which
are winding their operations in India. Adjusted PAT, including share from Satyam,
came in at `302cr. Overall results were weak. The only growth driver for the
Market Outlook
May 24, 2012
company is non-BT business as BT is retendering its contracts. The stock is

currently under review.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
6,030
16.3
1,069
81.1
20.1
7.5
1.5
7.9
1.3
FY2014E
6,511
15.7
1,148
87.0
18.0
7.0
1.3
6.8
1.1
Tata Global (CMP: `108/ TP: `136/ Upside: 26%)

During 4QFY2012, Tata Global posted 10.7% yoy growth in consolidated net
sales to `1,724cr, aided by improved performance in most of its major markets
coupled with foreign exchange translation impact. OPM stood at 8%, down 30bp
yoy. On the bottom-line front, the companys net profit fell by 36.4% yoy to
`54.2cr due to exceptional expense of `40cr in 4QFY2012 as against exceptional
gain of `56cr in 4QFY2011. Exceptional expenses for the quarter related to cost
incurred for long-term initiatives and new projects and loss on assets related to
discontinued business initiatives, among others. We maintain our Buy
recommendation on the stock with a target price of `136.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
7,011
9.7
368
5.9
8.9
18.2
1.6
8.7
0.8
FY2014E
7,712
10.0
441
7.1
10.2
15.1
1.5
7.6
0.8
Lakshmi Machine Works (CMP: `1,521 / TP: `2,609 / Upside:

72%)
Lakshmi Machine Works (LMW) announced below par numbers for 4QFY2012.
The companys net sales declined by 5.4% qoq and 6.1% yoy to `502cr on the
back of lower sales in the textile machinery division. The textile machinery division
registered a 12.3% qoq and 8.9% yoy decline in revenue to `413cr. The
companys others segment, however, witnessed 30.4% qoq and 7.4% yoy growth
in revenue to `93cr. The companys EBITDA declined by 25.1% yoy to `49cr on
the back of lower revenue and margin contraction. EBITDA margin contracted by
246bp yoy to 9.7% on account of higher other expenditure. Other expenditure as
a percentage of sales increased to 19.4% in 4QFY2012 compared to 14.5% in
4QFY2011. PAT declined by 84.2% yoy to `7cr on the back of margin contraction,
prior-period finance cost of `5cr and higher tax provision due to prior-period tax
adjustments of `16cr, resulting in tax rate of 78.1% of PBT in 4QFY2012 vs. 25.6%
of PBT in 4QFY2011. Consequently, PAT margin also declined by 687bp yoy to
1.4% (8.3%). Adjusted for prior-period adjustments, PAT came in at `28cr, down
36.4% yoy. We currently have a Buy recommendation on the stock. We may revise
our estimates and target price post an interaction with the management.
Y/E
Sales
OPM
PAT
(%)
(` cr)
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(`)
FY2013E
2,663
12.8
208
185.0
(%)
(x)
(x)
(x)
(x)
21.2
8.2
1.6
1.7
FY2014E
0.2
3,130
12.8
245
217.4
21.7
7.0
1.4
1.2
0.2
Market Outlook
May 24, 2012
Jyothy Laboratories (CMP `192, TP `248, Upside: 29%)

For 4QFY2012, JLL reported a healthy set of numbers, ahead of our estimates.
The company's top line (standalone) grew by 37.5% yoy to `219cr, higher than our
estimate of `192cr for the quarter. This was mainly driven by volume growth
coupled with improved realization. The companys EBITDA margin improved by
614bp yoy to 16.6% for the quarter; however, it remained flat on a qoq basis.
Though raw-material cost witnessed a sharp jump, the decrease in employee cost,
which was mainly because of the reversal of incentives provided to the sales staff,
helped the operating margin to maintain the previous level. Interest cost for the
quarter increased to `13.4cr. The company reported growth of 25.7% yoy in its
profit, which came in at `28cr. We maintain our Buy recommendation on the stock
with target price of `248 based on SOTP valuation.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
1359
10.3
112
13.9
35.5
13.8
4.5
15.3
1.6
FY2014E
1627
12.9
166
20.6
41.0
9.3
3.3
9.6
1.2
Result Previews
Madras Cements
Madras Cements is set to declare its 4QFY2012 results. We expect the company to
post top-line growth of 31.4% yoy to `902cr on account of higher volumes and
better realizations. OPM is expected to grow by 438bp yoy to 29.1%. We expect
the company to post 65.8% yoy growth in its bottom line to `106cr. We continue to
remain Neutral on the stock.
TVS Motor
TVS Motor is scheduled to announce its 4QFY2012 results. We expect the
companys top line to report modest ~8% yoy growth to `1,733cr, driven primarily
by ~6% yoy growth in net average realization. Volumes during the quarter
remained subdued (up ~2% yoy) as motorcycle volumes declined by ~11% yoy
amidst rising competition and moderating demand environment. EBITDA margin is
expected to expand by ~80bp yoy to 6.4%. However, the bottom line is expected
to jump by 31% yoy to `55cr mainly due to lower tax rate and improvement in
operating margin. We maintain our Buy recommendation on the stock with a
target price of `55.
Market Outlook
May 24, 2012
Quarterly Bloomberg Brokers Consensus Estimate

Reliance Power - Consolidated (24/05/2012)
Particulars (` cr)
4Q FY12E
4Q FY11
y-o-y (%)
3Q FY12
q-o-q (%)
Net sales
545
495
10
457
19
EBITDA
179
156
15
140
28
EBITDA margin (%)
32.8
31.5
Net profit
188
187
204
(8)
4Q FY12E
4Q FY11
y-o-y (%)
3Q FY12
q-o-q (%)
60,374
48,312
25
61,456
(2)
4,409
2,174
103
4,126
7.3
4.5
3,700
935
30.6
BPCL Ltd - (25/05/2012)

Particulars (` cr)
Net sales
EBITDA
EBITDA margin (%)
Net profit
6.7
296
3,140
18
Crompton Greaves Ltd - Consolidated (25/05/2012)

Particulars (` cr)
4Q FY12E
4Q FY11
y-o-y (%)
3Q FY12
q-o-q (%)
3,247
2,999
3,119
EBITDA
264
382
(31)
198
33
EBITDA margin (%)
8.1
12.7
Net profit
164
251
(35)
77
113
4Q FY12E
4Q FY11
y-o-y (%)
3Q FY12
q-o-q (%)
Net sales
861
709
21
862
(0)
EBITDA
435
460
(5)
379
15
EBITDA margin (%)
50.5
64.9
Net profit
224
301
Net sales
6.3
NHPC Ltd - (25/05/2012)

Particulars (` cr)
44.0
(25)
212
Reliance Infrastructure Ltd - Consolidated (25/05/2012)

Particulars (` cr)
Net sales
4Q FY12E
4Q FY11
y-o-y (%)
3Q FY12
q-o-q (%)
6,162
3,696
67
6,129
38
955
(15)
EBITDA
807
586
EBITDA margin (%)
13.1
15.9
Net profit
451
411
15.6
10
408
11
Suzlon Energy Ltd - Consolidated (25/05/2012)

Particulars (` cr)
4Q FY12E
4Q FY11
y-o-y (%)
3Q FY12
q-o-q (%)
5,840
7,276
(20)
4,986
17
EBITDA
531
1,053
(50)
360
48
EBITDA margin (%)
9.1
14.5
Net profit
45
432
Net sales
7.2
(90)
(302)
(115)
Market Outlook
May 24, 2012
Reliance Communication Ltd - Consolidated (26/05/2012)

Particulars (` cr)
4Q FY12E
4Q FY11
y-o-y (%)
3Q FY12
q-o-q (%)
Net sales
5,113
7,278
(30)
4,737
EBITDA
1,618
4,133
(61)
1,383
17
EBITDA margin (%)
31.6
56.8
Net profit
166
168
29.2
(1)
Economic and Political News
Rupee breaches 56/dollar, despite RBI action

25% of loans to SEBs restructured
June FTP set to bring stability to farm export
Corporate News
RIL-led group gives up D4 gas block

Aurobindo Pharma gets US nod for generic anti-HIV drug
Suzlon to commission 138-MW project for South Africa
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
186
(11)
Market Outlook
May 24, 2012
Result Calendar
Date
Company
May 24, 2012
Reliance Power, GSPL, TVS Motor, Madras Cements, Hitachi
May 25, 2012
ITC, NHPC, BPCL, Reliance Infra., Sun TV Network, Crompton Greaves, Suzlon Energy, MOIL, Jyoti Structures
May 26, 2012
Rcom, Jagran Prakashan, Sarda Energy, TVS Srichakra
May 27, 2012
May 31, 2012
NMDC, IOC, Motherson Sumi, Bharat Forge, Britannia, Bajaj Electrical, Sadbhav Engg., Amara Raja Batteries, Indoco
Remedies, Subros
ONGC, Tata Motors, Sun Pharma, Power Grid Corpn, SAIL, United Spirits, HPCL, GMR Infra., Aurobindo Pharma,
Ipca labs, Nagarjuna Const., Prakash Industries, PVR
GAIL, M&M, DLF, Jaiprakash Asso., Colgate, Tata Chemicals, HDIL, Page Industries, BGR Energy , PTC India, Anant
Raj, GIPCL, Simplex Infra, SpiceJet, Greenply
-
June 01, 2012
Mphasis
June 02, 2012
May 28, 2012

May 29, 2012
May 30, 2012
Source: Bloomberg, Angel Research
Global economic events release calendar

Date
Country
Event Description
Unit
Period
Bloomberg Data
Last Reported
Estimated
May 23, 2012
US
New home sales
Thousands
Apr-12
343.00
335.00
May 24, 2012
US
Initial Jobless claims
Thousands
12-May-12
370.00
370.00
Germany
GDP nsa (YoY)
% Change
Mar-12
1.70
1.70
Germany
PMI Services
Value
Apr-12
52.20
52.00
Germany
PMI Manufacturing
Value
Apr-12
46.20
47.00
UK
GDP (YoY)
Mar-12
--
--
May 29, 2012
US
Consumer Confidence
% Change
S.A./
1985=100
Apr-12
69.20
70.00
May 30, 2012
Euro Zone
Value
May-12
(19.30)
--
May 31, 2012
June 01, 2012
Germany
Euro-Zone Consumer
Confidence
Unemployment change (000's)
Thousands
Apr-12
19.00
--
US
GDP Qoq (Annualised)
% Change
Mar-12
2.20
1.80
India
Qtrly GDP YoY%
% Change
6.10
6.10
US
Change in Nonfarm payrolls
Thousands
Apr-12
115.00
150.00
US
Unnemployment rate
China
PMI Manufacturing
India
Apr-12
8.10
8.10
Value
Apr-12
53.30
52.50
Imports YoY%
% Change
Mar-12
24.28
--
India
Exports YoY%
% Change
Mar-12
(5.71)
--
UK
PMI Manufacturing
Euro Zone
Euro-Zone GDP s.a. (QoQ)
Euro Zone
ECB announces interest rates
June 07, 2012
UK
BOE Announces rates
June 09, 2012
China
June 06, 2012
Value
Apr-12
50.50
--
% Change
Mar-12
--
--
May-12
1.00
--
% Ratio
May-12
0.50
0.50
Industrial Production (YoY)
% Change
Apr-12
9.30
--
China
Consumer Price Index (YoY)
% Change
Apr-12
3.40
--
June 10, 2012
China
Exports YoY%
% Change
Apr-12
4.90
--
June 21, 2012
US
Existing home sales
Millions
Apr-12
4.62
--
Market Strategy
May 24, 2012
Macro watch
Exhibit 1: Quarterly GDP trends

(%)
Exhibit 2: IIP trends

(%)
9.8
10.0
12.0
9.4
9.0
8.0
7.5
8.3
7.8
7.6
7.4
8.0
7.7
6.9
5.8
6.0
3.7
4.0
6.1
5.9
6.2
5.3
6.0
7.0
4.1
3.4
2.7
2.5
1.1
2.0
Exhibit 3: Monthly WPI inflation trends
Exhibit 4: Manufacturing and services PMI

Mfg. PMI
60.0
9.6
9.5
9.4
9.8
10.0
9.9
7.7
8.0
Mar-12
Services PMI
58.0
9.5
6.9
7.4
6.9
7.2
56.0
Source: MOSPI, Angel Research
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Exhibit 5: Exports and imports growth trends
Exhibit 6: Key policy rates
(%)
Exports yoy growth
Repo rate
(%)
9.00
Imports yoy growth
90
75
Reverse Repo rate
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
Apr-11
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Aug-11
Nov-11
48.0
Oct-11
0.0
Sep-11
50.0
Jul-11
2.0
Jun-11
52.0
May-11
4.0
Jun-11
54.0
6.0
May-11
10.0
Feb-12
(5.0)
Source: MOSPI, Angel Research
(%)
Jan-12
(3.5)
(6.0)
Source: CSO, Angel Research
12.0
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
3QFY12
2QFY12
1QFY12
4QFY11
3QFY11
2QFY11
1QFY11
4QFY10
3QFY10
2QFY10
1QFY10
4QFY09
3QFY09
(4.0)
May-11
(2.0)
5.0
Jun-11
Apr-11
6.0
9.5
10.0
8.5
CRR
8.00
8.00
60
7.00
45
30
6.00
4.75
5.00
Source: RBI, Angel Research
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
Jun-11
4.00
May-11
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
Jun-11
May-11
Apr-11
May-12
15
(15)
7.00
Market Outlook
May 24, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Agri / Agri Chemical

Rallis
Neutral
128
2,485
1,432
1,647
14.7
14.7
7.0
8.0
18.3
16.0
3.9
3.3
22.8
22.3
1.7
1.4
United Phosphorus
Buy
116
183
5,352
8,191
8,764
16.5
16.5
17.1
18.3
6.8
6.3
1.1
1.0
17.5
16.2
0.8
0.7
Amara Raja Batteries
Buy
280
345
2,387
2,691
3,032
15.6
15.5
29.4
32.8
9.5
8.5
2.3
1.8
26.5
23.6
0.8
0.7
Apollo Tyres
Buy
83
100
4,188
13,699
15,184
10.5
10.2
12.1
13.3
6.9
6.2
1.3
1.1
19.7
18.4
0.5
0.4
Ashok Leyland
Buy
24
33
6,452
14,798
16,687
9.6
9.6
2.4
3.0
10.0
8.2
2.0
1.7
14.8
16.5
0.5
0.4
Automotive Axle
Accumulate
453
514
684
1,211
1,387
12.1
11.7
50.3
57.1
9.0
7.9
2.3
1.9
27.8
25.7
0.6
0.5
Bajaj Auto
Buy
1,487
1,835
43,032
22,118
24,889
19.0
18.6
115.7
126.5
12.9
11.8
5.2
4.1
45.0
38.9
1.6
1.3
Bharat Forge
Buy
312
372
7,253
7,173
7,998
16.3
16.5
22.3
26.6
14.0
11.7
2.7
2.3
21.0
21.0
1.1
0.9
Bosch India
Accumulate
8,873
9,429
27,860
9,390
10,716
19.5
19.1
420.2
471.4
21.1
18.8
4.9
4.1
23.3
21.8
2.7
2.3
CEAT
Buy
92
164
315
5,067
5,631
8.0
7.6
39.4
41.0
2.3
2.2
0.4
0.3
18.8
16.5
0.3
0.3
Exide Industries
Buy
117
146
9,949
5,787
6,595
15.5
17.0
7.1
9.0
16.5
13.1
2.9
2.5
18.6
20.3
1.4
1.2
FAG Bearings
Neutral
1,555
2,584
1,531
1,748
18.8
18.5
118.0
132.8
13.2
11.7
2.9
2.3
24.0
21.9
1.4
1.2
Hero Motocorp
Buy
1,826
2,280
36,467
26,106
29,296
15.0
15.2
140.3
148.1
13.0
12.3
6.2
4.7
54.8
43.3
1.1
0.9
JK Tyre
Buy
74
113
305
8,058
9,025
5.4
5.5
24.8
32.2
3.0
2.3
0.3
0.3
11.4
13.2
0.3
0.3
Auto & Auto Ancillary
Mahindra and Mahindra Buy
644
793
39,537
34,740
39,263
10.7
11.0
44.9
51.7
14.4
12.5
2.6
2.2
18.9
19.1
0.8
0.7
Maruti
Buy
1,151
1,510
33,261
42,683
48,736
7.1
7.5
86.6
100.6
13.3
11.4
1.9
1.7
15.3
15.5
0.6
0.5
Motherson Sumi
Buy
165
216
6,386
11,167
12,516
9.5
10.0
11.3
14.4
14.6
11.5
3.2
2.6
23.3
24.7
0.7
0.6
Subros
Neutral
31
185
1,225
1,393
8.5
8.2
4.2
5.0
7.4
6.2
0.8
0.7
10.3
11.8
0.4
0.3
Tata Motors
Buy
262
312
69,733 191,183 210,301
12.8
12.8
39.4
43.6
6.6
6.0
2.4
1.8
40.4
34.3
0.5
0.4
TVS Motor
Buy
33
55
1,563
7,982
8,816
6.4
6.3
5.0
5.6
6.6
5.9
1.2
1.0
18.9
18.2
0.2
0.2
ABB*
Sell
721
498
15,269
8,760
10,023
6.4
6.4
18.2
20.7
39.5
34.7
5.3
4.8
14.4
14.6
1.7
1.5
BGR Energy
Reduce
284
274
2,047
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
209
51,106
46,344
46,916
18.3
18.6
23.5
24.1
8.9
8.7
1.8
1.5
21.3
18.9
1.0
0.9
Blue Star
Buy
163
221
1,469
3,250
3,551
5.9
5.9
12.4
15.8
13.1
10.4
2.7
2.3
21.2
23.8
0.6
0.4
Crompton Greaves
Buy
112
164
7,153
12,936
14,101
9.6
10.0
10.9
11.7
10.3
9.5
1.8
1.5
18.4
17.3
0.6
0.5
Jyoti Structures
Buy
38
67
309
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
52
73
1,327
6,686
7,200
7.7
7.9
10.6
12.2
4.9
4.2
0.9
0.8
25.9
24.0
0.3
0.3
LMW
Buy
1,529
2,609
1,722
2,663
3,130
12.8
12.8
185.0
217.4
8.3
7.0
1.6
1.4
21.2
21.7
0.2
0.1
Thermax
Neutral
431
5,131
5,514
5,559
8.3
8.0
29.7
28.4
14.5
15.2
2.7
2.4
20.2
16.9
0.8
0.8
Capital Goods
Market Outlook
May 24, 2012
Stock Watch
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
1,132
21,246
11,018
12,663
19.9
21.2
70.7
81.2
16.0
13.9
2.8
2.5
18.0
19.0
1.7
1.4
Ambuja Cements
Neutral
138
21,192
10,035
11,504
23.5
23.8
10.1
10.6
13.6
13.1
2.7
2.4
18.5
19.4
1.8
1.5
India Cements
Neutral
74
2,281
4,423
4,906
18.2
18.8
9.9
12.7
7.5
5.9
0.6
0.6
8.6
10.5
0.8
0.7
J K Lakshmi Cements
Buy
62
79
758
1,880
2,201
19.0
22.6
12.2
16.4
5.1
3.8
0.6
0.5
11.9
14.3
0.6
0.9
Madras Cements
Neutral
138
3,285
3,434
3,777
25.5
26.1
14.1
18.1
9.8
7.7
1.4
1.2
15.2
16.9
1.6
1.3
Shree Cements
Neutral
2,580
8,988
5,465
6,249
24.3
23.7
151.5
222.1
17.0
11.6
4.1
3.5
21.6
25.8
1.3
1.0
UltraTech Cement
Neutral
1,372
37,605
20,116
22,655
21.3
22.5
82.1
97.5
16.7
14.1
2.6
2.3
16.8
17.4
1.8
1.8
198
302
1,042
2,014
2,294
22.4
22.4
28.4
30.8
7.0
6.4
0.9
0.8
14.1
13.3
2.3
2.6
Construction
Ashoka Buildcon
Buy
Consolidated Co
Neutral
14
258
2,526
2,792
5.7
6.6
1.8
2.8
7.6
4.9
0.4
0.4
5.5
8.1
0.3
0.3
Hind. Const.
Neutral
18
1,101
4,239
4,522
11.1
11.8
(1.8)
(0.8)
(10.1)
(23.3)
1.0
1.2
(9.5)
(4.7)
1.3
1.2
IRB Infra
Buy
111
166
3,681
3,821
4,582
42.3
40.2
15.0
16.9
7.4
6.5
1.1
1.0
16.1
15.8
2.6
2.4
ITNL
Buy
165
265
3,200
6,619
7,925
23.8
23.3
22.0
26.7
7.5
6.2
1.1
0.9
14.9
15.9
2.2
2.1
IVRCL Infra
Buy
41
79
1,103
5,758
6,860
9.2
9.2
4.7
6.0
8.8
6.9
0.5
0.5
6.0
7.3
0.7
0.6
Jaiprakash Asso.
Buy
60
104
12,801
16,017
18,359
24.4
23.5
4.2
5.0
14.3
12.0
1.2
1.1
8.8
9.7
2.2
1.9
Larsen & Toubro
Buy
1,149
1,553
70,389
59,559
69,089
12.1
11.5
70.8
76.5
16.2
15.0
2.4
2.1
16.1
15.3
1.4
1.2
Madhucon Proj
Buy
44
70
321
2,206
2,502
10.7
10.7
4.6
4.7
9.4
9.3
0.5
0.5
5.2
5.0
0.7
0.7
Nagarjuna Const.
Buy
31
76
804
5,790
7,022
9.2
9.5
3.5
5.4
9.0
5.8
0.3
0.3
3.7
5.6
0.8
0.7
Patel Engg.
Neutral
82
576
3,609
3,836
13.1
13.1
14.0
14.6
5.9
5.7
0.4
0.3
6.3
6.1
1.0
1.1
Punj Lloyd
Neutral
45
1,488
10,592
12,193
8.4
8.4
2.9
4.6
15.4
9.9
0.5
0.5
3.9
3.1
0.6
0.6
Sadbhav Engg.
Buy
125
199
1,880
2,989
3,315
10.6
10.6
10.2
11.3
12.3
11.1
2.0
1.7
17.6
16.3
0.8
0.8
Simplex Infra
Buy
213
316
1,054
6,732
7,902
9.3
9.6
27.2
35.1
7.8
6.1
0.8
0.7
11.0
12.6
0.5
0.4
Allahabad Bank
Accumulate
140
166
7,003
7,392
8,542
3.1
3.1
38.3
42.1
3.7
3.3
0.6
0.6
18.4
17.6
Andhra Bank
Neutral
102
5,711
5,151
5,843
3.2
3.1
22.4
25.7
4.6
4.0
0.7
0.6
15.8
16.0
Axis Bank
Buy
964
1,476
39,883
16,157
19,557
3.2
3.2
116.4
139.1
8.3
6.9
1.5
1.3
20.0
20.3
Bank of Baroda
Buy
657
925
25,732
15,993
18,918
2.6
2.6
127.3
149.9
5.2
4.4
0.9
0.8
17.8
18.2
Bank of India
Buy
311
411
17,847
13,558
15,551
2.5
2.4
61.6
70.8
5.1
4.4
0.8
0.7
16.8
16.9
Bank of Maharashtra
Accumulate
Canara Bank
Buy
Central Bank
Neutral
Financials
47
53
2,777
3,580
4,050
3.2
3.2
11.5
13.1
4.1
3.6
0.7
0.6
17.4
17.2
385
522
17,058
12,061
13,906
2.3
2.3
83.1
92.7
4.6
4.2
0.8
0.7
16.7
16.4
73
5,370
6,838
7,912
2.3
2.4
13.8
20.3
5.3
3.6
0.8
0.7
10.9
14.4
Market Outlook
May 24, 2012
Stock Watch
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
401
486
5,940
5,203
5,880
2.2
2.1
107.5
112.7
3.7
3.6
0.6
0.6
17.9
16.5
Dena Bank
Buy
84
111
2,937
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
401
6,852
2,743
3,131
3.4
3.3
49.7
57.4
8.1
7.0
1.1
1.0
14.1
14.6
HDFC
Neutral
635
93,790
7,393
8,844
3.5
3.4
31.7
37.9
20.0
16.7
4.0
3.6
34.7
31.9
HDFC Bank
Accumulate
487
567
114,356
21,831
27,477
4.3
4.3
28.3
35.5
17.2
13.7
3.3
2.8
20.8
22.1
ICICI Bank
Buy
796
1,174
91,451
22,209
26,512
2.8
2.8
67.9
81.1
11.7
9.8
1.4
1.3
14.7
16.0
IDBI Bank
Buy
Indian Bank
Accumulate
IOB
Buy
J & K Bank
86
117
10,950
8,004
9,589
1.9
2.0
19.9
23.9
4.3
3.6
0.6
0.5
13.8
14.9
177
197
7,596
6,312
7,119
3.4
3.3
41.1
43.7
4.3
4.0
0.7
0.7
18.2
16.9
78
96
6,221
7,354
8,283
2.5
2.4
16.3
21.7
4.8
3.6
0.5
0.5
11.5
13.9
Accumulate
903
952
4,378
2,535
2,861
3.5
3.4
176.3
184.4
5.1
4.9
0.9
0.8
19.3
17.6
LIC Housing Finance
Buy
235
286
11,882
2,108
2,607
2.6
2.6
24.5
30.6
9.6
7.7
1.8
1.5
20.1
21.4
Oriental Bank
Buy
220
274
6,423
6,431
7,315
2.7
2.6
54.4
63.8
4.0
3.5
0.6
0.5
13.6
14.3
Punjab Natl.Bank
Buy
708
1,015
24,029
19,893
23,653
3.1
3.2
153.4
175.2
4.6
4.0
0.8
0.7
18.3
18.1
South Ind.Bank
Neutral
22
2,457
1,399
1,596
2.6
2.5
3.5
3.8
6.2
5.7
1.1
1.0
18.7
17.5
St Bk of India
Buy
1,956
2,486
131,287
68,925
80,565
3.7
3.7
236.6
282.7
8.3
6.9
1.4
1.2
18.6
19.3
Syndicate Bank
Buy
86
131
5,186
7,133
8,255
3.0
3.0
25.9
30.0
3.3
2.9
0.5
0.5
16.9
17.1
UCO Bank
Neutral
66
4,387
5,623
6,380
2.4
2.4
16.9
17.9
3.9
3.7
0.7
0.7
16.5
15.4
Union Bank
Buy
201
276
11,061
10,215
11,854
2.9
2.8
42.7
50.3
4.7
4.0
0.8
0.7
17.0
17.5
United Bank
Buy
55
78
1,980
3,551
4,128
2.7
2.8
18.8
22.6
2.9
2.4
0.5
0.4
15.5
16.5
Vijaya Bank
Neutral
52
2,589
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
320
450
11,307
3,209
4,144
2.7
2.8
33.9
41.5
9.4
7.7
2.0
1.6
23.1
23.3
3,671
35,211
11,423
13,309
16.3
16.3
125.3
148.4
29.3
24.7
10.0
7.8
38.0
35.4
3.1
2.6
532
650
6,352
5,906
6,856
6.9
7.0
22.3
28.3
23.8
18.8
9.7
7.2
45.2
44.1
1.1
0.9
1,205
16,383
3,007
3,417
21.1
22.1
37.7
42.6
32.0
28.3
38.1
30.7
129.4
120.1
5.4
4.7
FMCG
Asian Paints
Neutral
Britannia
Buy
Colgate
Neutral
Dabur India
Neutral
104
18,179
5,878
6,799
16.8
17.0
4.2
4.9
25.2
21.2
9.1
7.5
39.3
42.0
3.1
2.7
GlaxoSmith Con*
Neutral
2,643
11,117
3,124
3,663
17.1
11.6
103.0
123.3
25.7
21.5
7.9
6.4
34.0
32.9
3.3
2.7
Godrej Consumer
Neutral
558
18,987
5,973
7,000
18.4
18.6
22.8
27.2
24.5
20.6
6.7
5.4
31.3
38.4
3.3
2.8
HUL
Neutral
426
92,005
25,350
29,309
14.3
14.4
14.1
16.4
30.1
26.0
22.5
17.6
82.7
76.2
3.5
3.0
ITC
Accumulate
232
252
181,348
28,955
33,595
35.9
35.7
9.2
10.5
25.3
22.1
8.1
6.7
34.8
33.1
6.1
5.2
Market Outlook
May 24, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
( )
Price ( )
( cr )
FY13E
OPM(%)
FY14E
FY13E
FY14E
EPS ( )
FY13E
PER(x)
P/BV(x)
FY14E
FY13E
FY14E
FY13E
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FMCG
Marico
Neutral
168
10,330
4,667
5,427
12.8
12.9
6.6
8.1
25.3
20.7
6.8
5.3
30.0
28.8
2.3
1.9
Nestle*
Neutral
4,619
44,532
8,731
10,539
21.0
21.4
119.3
147.9
38.7
31.2
23.7
16.2
73.0
61.6
5.2
4.2
Tata Global
Buy
108
136
6,673
7,011
7,712
9.7
10.0
6.0
7.1
18.2
15.1
1.7
1.6
8.9
10.2
0.8
0.8
HCL Tech
Buy
484
560
33,554
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
123
128
3,642
1,821
2,105
19.0
18.6
9.8
10.7
12.5
11.5
2.9
2.5
23.7
22.5
1.6
1.4
Infosys
Buy
2,338
2,792
134,266
37,615
42,491
31.1
30.6
158.5
174.5
14.8
13.4
3.3
2.8
22.5
20.8
2.9
2.4
Infotech Enterprises
Accumulate
160
177
1,783
1,758
1,972
17.0
16.6
16.8
18.6
9.5
8.6
1.3
1.1
13.6
13.2
0.7
0.5
KPIT Cummins
Reduce
118
114
2,107
2,028
2,239
15.0
14.8
9.0
11.4
13.2
10.4
2.4
2.0
19.3
18.7
1.1
0.9
Mahindra Satyam
Buy
72
89
8,455
7,142
8,042
15.4
15.0
7.7
8.3
9.4
8.7
1.3
1.1
13.8
13.0
0.8
0.6
Mindtree
Neutral
605
2,456
2,172
2,450
16.1
15.5
53.9
58.5
11.2
10.4
2.1
1.8
18.9
17.0
0.9
0.8
Mphasis
Accumulate
370
433
7,772
5,904
6,320
18.3
17.9
38.7
41.2
9.6
9.0
1.4
1.2
14.9
13.7
0.9
0.7
NIIT
Buy
39
52
645
1,162
1,304
14.8
15.1
7.1
8.8
5.5
4.4
0.9
0.8
16.7
18.4
0.4
0.3
Persistent
Neutral
TCS
Accumulate
Tech Mahindra
Wipro
IT
344
1,375
1,109
1,224
23.3
22.4
37.2
40.1
9.3
8.6
1.4
1.2
15.4
14.5
0.9
0.8
1,226
1,276
239,867
57,189
66,329
29.3
28.7
63.2
70.9
19.4
17.3
5.9
4.8
30.5
27.7
3.9
3.3
Buy
612
750
7,803
6,030
6,511
16.3
15.7
81.1
87.0
7.6
7.0
1.5
1.3
20.1
18.0
1.3
1.0
Accumulate
384
430
94,480
41,918
46,879
19.4
19.9
25.1
28.7
15.3
13.4
2.9
2.5
18.6
18.3
1.9
1.6
D B Corp
Buy
204
269
3,737
1,652
1,863
25.7
26.3
13.5
16.1
15.1
12.7
3.4
2.8
24.1
24.4
2.1
1.8
HT Media
Buy
111
170
2,598
2,255
2,555
17.8
18.3
10.0
12.0
11.1
9.2
1.5
1.3
14.7
15.4
0.9
0.8
Jagran Prakashan
Buy
80
137
2,529
1,499
1,642
27.4
28.8
7.6
9.1
10.5
8.8
3.5
3.2
34.6
37.7
1.7
1.6
PVR
Neutral
148
383
625
732
17.4
16.9
12.4
15.8
11.9
9.4
1.9
2.0
8.5
9.9
0.8
0.6
Sun TV Network
Neutral
250
9,866
2,135
2,458
75.2
74.4
20.9
24.0
12.0
10.4
2.8
2.4
26.0
25.1
3.7
3.0
Bhushan Steel
Neutral
436
9,262
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
308
351
194,607
65,654
71,756
26.8
27.3
24.0
26.3
12.8
11.7
3.5
2.9
30.4
27.0
2.0
1.7
Electrosteel Castings
Buy
18
27
635
1,984
2,074
10.6
12.0
2.7
3.3
6.8
5.6
0.3
0.1
5.2
6.2
0.4
0.4
Hind. Zinc
Buy
115
139
48,718
13,043
14,223
51.8
52.8
14.8
16.6
7.8
7.0
1.5
1.3
21.2
19.9
2.0
1.5
Hindalco
Neutral
107
20,572
84,652
88,766
9.6
10.5
17.0
18.9
6.3
5.7
0.6
0.5
9.7
9.8
0.5
0.5
JSW Steel
Accumulate
577
663
12,872
39,592
44,910
18.0
17.7
74.7
88.9
7.7
6.5
0.7
0.7
10.7
11.6
0.7
0.7
MOIL
Neutral
260
4,360
979
1,061
45.7
46.8
24.5
26.6
10.6
9.8
1.6
1.5
16.1
15.8
2.2
1.9
Monnet Ispat
Buy
416
593
2,676
3,115
3,748
22.1
25.1
59.1
66.8
7.0
6.2
1.0
0.9
15.6
15.3
1.6
1.2
Media
Metals & Mining
Market Outlook
May 24, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
Sales ( cr )
FY13E
OPM(%)
FY14E
FY13E
FY14E
EPS ( )
FY13E
PER(x)
P/BV(x)
RoE(%)
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
EV/Sales(x)
FY14E
FY13E
FY14E
Metals & Mining

Nalco
Sell
NMDC
Accumulate
59
51
15,219
8,276
8,578
12.7
16.4
2.5
3.5
23.3
16.9
1.3
1.2
5.6
7.5
1.4
1.4
170
185
67,242
11,726
12,890
77.8
78.4
18.6
20.6
9.1
8.2
2.2
1.8
26.1
23.8
3.5
3.0
SAIL
Sesa Goa
Accumulate
91
102
37,505
52,461
62,935
18.0
18.8
13.2
14.5
6.9
6.3
0.8
0.7
12.4
12.3
1.1
1.0
Accumulate
179
206
15,531
9,067
9,316
35.7
35.5
44.5
44.3
4.0
4.0
0.9
0.7
23.5
19.5
0.5
Sterlite Inds
0.1
Buy
94
123
31,707
45,805
49,029
21.2
23.5
16.5
19.1
5.7
4.9
0.6
0.6
11.5
12.0
0.3
Tata Steel
0.2
Buy
396
499
38,475 143,088 148,011
10.9
12.1
53.9
66.0
7.4
6.0
0.9
0.8
12.2
13.4
0.6
0.6
Cairn India
Accumulate
320
372
61,096
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
324
392
41,092
50,472
55,503
15.3
15.6
35.4
37.0
9.1
8.8
1.6
1.4
18.7
17.0
0.5
0.4
ONGC
Buy
243
319
207,898 148,157 150,563
37.6
39.5
31.0
33.6
7.8
7.2
1.4
1.2
18.8
18.1
1.1
0.9
Reliance Industries
Buy
687
872
225,027 325,734 328,669
10.9
11.7
65.8
70.1
10.5
9.8
1.1
1.0
11.9
11.5
0.7
0.7
Oil & Gas
Pharmaceuticals
Alembic Pharma
Buy
49
91
918
1,624
1,855
14.2
15.6
6.6
9.1
7.4
5.4
1.8
1.4
27.5
29.2
0.8
0.7
Aurobindo Pharma
Buy
108
175
3,135
5,243
5,767
14.6
14.6
13.8
14.7
7.8
7.3
0.9
0.4
11.4
10.9
0.9
0.8
Aventis*
Neutral
2,071
4,768
1,482
1,682
15.5
15.5
95.0
104.0
21.8
19.9
3.9
3.0
18.6
17.0
3.1
2.6
Cadila Healthcare
Buy
735
953
15,053
6,196
7,443
18.5
19.5
43.3
50.8
17.0
14.5
4.4
3.5
25.4
24.8
2.5
2.0
Cipla
Buy
309
379
24,826
7,687
8,804
21.4
21.4
16.5
18.9
18.7
16.4
2.9
2.6
16.7
16.8
3.2
2.8
Dr Reddy's
Neutral
1,676
28,399
10,696
11,662
20.7
21.0
83.7
92.9
20.0
18.0
4.1
3.5
22.4
21.0
2.7
2.5
Dishman Pharma
Buy
46
92
371
1,280
1,536
17.8
17.8
9.2
11.3
5.0
4.1
0.4
0.4
7.7
8.5
1.0
0.8
GSK Pharma*
Neutral
1,960
16,599
2,651
2,993
31.7
31.2
76.0
82.4
25.8
23.8
7.4
6.5
30.8
29.0
5.6
4.8
Indoco Remedies
Buy
59
665
543
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
341
443
4,293
2,907
3,541
21.5
21.5
32.4
40.6
10.5
8.4
2.6
2.1
27.8
27.7
1.6
1.3
Lupin
Buy
539
646
24,101
8,426
10,082
19.7
20.0
29.7
32.4
18.2
16.7
4.7
3.8
27.0
25.2
2.8
2.2
Orchid Chemicals
Buy
119
178
840
2,117
2,434
17.7
17.7
16.7
22.2
7.1
5.4
0.7
0.6
9.5
11.5
1.1
0.9
Ranbaxy*
Neutral
501
21,152
12,046
11,980
18.0
15.8
35.7
29.8
14.0
16.8
5.3
4.3
43.1
28.1
1.7
1.7
Sun Pharma
Accumulate
571
634
58,844
9,272
11,080
40.3
36.3
26.7
28.8
21.4
19.8
4.3
3.7
22.1
20.8
5.6
4.6
CESC
Buy
270
342
3,368
5,084
5,512
24.2
23.8
45.2
48.5
6.0
5.6
0.6
0.6
11.2
10.9
1.1
1.1
GIPCL
Buy
61
98
918
1,557
1,573
28.7
27.5
10.4
10.2
5.9
6.0
0.6
0.6
10.5
9.6
1.0
0.9
NTPC
Buy
141
201
116,302
74,766
86,549
23.1
23.4
12.4
14.1
11.4
10.0
1.4
1.3
13.0
13.5
2.3
2.1
47
78
1,381
657
875
52.0
56.1
8.4
12.7
5.6
3.7
0.3
0.3
6.3
8.9
3.6
2.7
184
31,208
9,878
12,033
44.7
46.1
9.6
13.4
19.2
13.7
1.2
1.2
6.4
8.7
5.8
4.7
Power
Real Estate
Anant Raj
Buy
DLF
Neutral
Market Outlook
May 24, 2012
Stock Watch
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
61
115
2,566
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
Real Estate
HDIL
Buy
Telecom
Bharti Airtel
Neutral
282
107,071
80,967
88,684
33.1
33.4
17.9
22.0
15.8
12.8
1.8
1.6
11.5
12.5
2.1
1.7
Idea Cellular
Neutral
75
24,804
22,558
25,326
26.4
27.5
3.2
4.7
23.3
15.8
1.8
1.6
7.5
10.0
1.7
1.5
Rcom
Neutral
63
13,024
21,899
23,740
32.7
32.7
4.2
6.7
14.9
9.5
0.3
0.3
2.1
3.2
2.0
1.7
224
245
2,227
3,670
4,384
8.5
8.5
18.3
22.3
12.2
10.0
2.7
2.2
23.9
24.3
0.6
0.5
zOthers
Bajaj Electrical
Accumulate
CRISIL
Neutral
1,060
7,440
982
1,136
34.3
34.3
34.3
40.0
30.9
26.5
14.0
11.2
50.9
46.9
7.1
6.0
Finolex Cables
Buy
36
61
554
2,334
2,687
8.8
9.3
7.6
10.2
4.8
3.6
0.6
0.5
13.7
16.1
0.2
0.1
Graphite India
Buy
91
124
1,769
2,158
2,406
18.1
18.9
12.4
14.0
7.3
6.5
1.0
0.9
14.0
14.3
1.0
0.8
Greenply
Buy
214
298
518
1,800
2,047
11.1
11.6
34.1
49.6
6.3
4.3
1.2
0.9
20.2
23.7
0.6
0.4
Page Industries
Neutral
3,028
3,377
935
1,168
19.6
19.6
99.7
122.2
30.4
24.8
17.6
14.1
64.2
63.1
3.7
2.9
Sintex
Buy
52
129
1,415
4,751
5,189
16.3
16.6
13.6
15.8
3.8
3.3
0.5
0.4
13.1
13.4
0.7
0.5
Siyaram Silk Mills
Buy
268
439
251
1,042
1,173
12.4
12.5
66.3
78.5
4.0
3.4
0.8
0.7
21.1
20.8
0.5
0.4
SpiceJet
Neutral
32
1,545
5,384
6,443
(1.0)
4.1
(3.4)
2.4
(9.4)
13.4
(12.9)
27.2
0.5
0.4
Taj GVK
Buy
58
108
366
300
319
35.8
36.2
7.9
9.1
7.4
6.4
1.0
0.9
13.9
14.4
1.5
1.3
Goodyear
Accumulate
332
372
766
1,571
1,753
7.2
8.6
29.8
42.4
11.1
7.8
2.1
1.7
20.2
24.3
0.3
0.2
HEG
Buy
206
242
824
1,746
1,946
16.5
17.7
22.5
32.9
9.2
6.3
0.9
0.9
10.4
14.2
1.1
1.0
Hitachi
Buy
121
186
278
995
1,142
6.4
7.4
12.8
18.6
9.5
6.5
1.4
1.2
15.7
19.5
0.4
0.3
Honeywell Automation
Neutral
2,568
2,270
1,798
2,071
8.9
9.1
133.4
160.6
19.3
16.0
3.1
2.6
17.2
17.6
1.1
0.9
Ineos ABS
Neutral
755
1,329
976
1,113
11.2
11.5
41.5
46.0
18.2
16.4
3.0
2.6
18.2
17.0
1.2
1.0
ITD Cementation
Reduce
216
196
249
1,535
1,811
10.6
10.7
26.2
39.6
8.2
5.5
0.6
0.6
7.6
10.6
0.6
0.6
MRF
Buy
10,286
13,106
4,362
12,390
14,400
10.4
11.3 1,334.6 1,638.2
7.7
6.3
1.5
1.2
16.5
17.4
0.6
0.5
Relaxo
Neutral
438
525
961
1,129
11.8
12.3
46.6
59.9
9.4
7.3
2.4
1.8
28.7
28.0
0.7
0.6
Tata Sponge
Buy
265
420
408
757
875
19.0
19.1
63.5
72.9
4.2
3.6
0.6
0.6
16.1
16.1
0.1
TVS Srichakra
Buy
314
462
240
1,612
1,827
9.5
9.8
72.3
92.5
4.3
3.4
1.3
1.0
33.1
32.1
0.4
0.3
Vesuvius India
Neutral
Abbott India
Accumulate
Cera Sanitaryware Ltd

Jyothy Laboratories
Force Motors
372
755
621
711
15.3
15.5
27.3
32.4
13.6
11.5
2.2
1.9
17.2
17.6
1.0
0.9
1,438
1,628
3,055
1,661
1,918
9.5
12.0
55.4
90.4
25.9
15.9
5.0
4.0
20.3
27.8
1.7
1.4
Buy
252
370
318
405
467
17.2
17.4
28.9
32.0
8.7
7.9
1.8
1.5
23.4
21.1
0.9
0.9
Buy
192
248
1,552
1,359
1,627
10.3
12.9
13.9
20.6
13.8
9.3
4.5
3.4
35.8
41.3
1.6
1.3
Buy
453
678
590
2,346
2,753
6.7
7.0
50.9
61.9
8.9
7.3
0.5
0.5
5.4
6.2
0.2
0.2
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on May 23, 2012
Market Outlook
May 24, 2012

Market Outlook Market Outlook: Dealer's Diary

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Market Outlook

May 24, 2012

US markets, after showing a notable move to the downside in morning trading on

Government raises petrol price by `7.54/litre

FII Derivatives (May 23, 2012)

OIL & GAS

(1.3) (253.0) 18,786

Net Inflows (May 21, 2012)

Refer detailed news analysis on the following page

Government raises petrol price by `7.54/litre

Tech Mahindra (CMP: `612/ TP: Under review/ Upside: -)

company is non-BT business as BT is retendering its contracts. The stock is

Tata Global (CMP: `108/ TP: `136/ Upside: 26%)

Lakshmi Machine Works (CMP: `1,521 / TP: `2,609 / Upside:

Jyothy Laboratories (CMP `192, TP `248, Upside: 29%)

Quarterly Bloomberg Brokers Consensus Estimate

EBITDA margin (%)

BPCL Ltd - (25/05/2012)

Crompton Greaves Ltd - Consolidated (25/05/2012)

EBITDA margin (%)

EBITDA margin (%)

NHPC Ltd - (25/05/2012)

Reliance Infrastructure Ltd - Consolidated (25/05/2012)

EBITDA margin (%)

Suzlon Energy Ltd - Consolidated (25/05/2012)

EBITDA margin (%)

Reliance Communication Ltd - Consolidated (26/05/2012)

EBITDA margin (%)

Economic and Political News

Rupee breaches 56/dollar, despite RBI action

RIL-led group gives up D4 gas block

May 24, 2012

Reliance Power, GSPL, TVS Motor, Madras Cements, Hitachi

May 25, 2012

May 26, 2012

Rcom, Jagran Prakashan, Sarda Energy, TVS Srichakra

May 27, 2012

May 31, 2012

June 01, 2012

June 02, 2012

May 28, 2012

Source: Bloomberg, Angel Research

Global economic events release calendar

May 23, 2012

New home sales

May 24, 2012

Initial Jobless claims

GDP nsa (YoY)

May 29, 2012

May 30, 2012

May 31, 2012

June 01, 2012

GDP Qoq (Annualised)

Qtrly GDP YoY%

Change in Nonfarm payrolls

Euro-Zone GDP s.a. (QoQ)

ECB announces interest rates

June 07, 2012

BOE Announces rates

June 09, 2012

June 06, 2012

Industrial Production (YoY)

Consumer Price Index (YoY)