Market Outlook, 08.05.13

Market Outlook
May 8, 2013
Dealers Diary
Domestic Indices
The Indian markets are expected to open positive today tracking strong cues from
SGX Nifty and most of the Asian markets. Asian indices have rallied on back of
better than expectations, Chinese imports and exports data and optimism that
central-bank stimulus will boost profits.
While trading activity was somewhat subdued, US stocks moved mostly higher over
the course of the trading day on Tuesday. The gains on the day extended the
upward trend that has been shown by the markets over the past few weeks. With
no major economic news being released, last Friday's better than expected jobs
report seems to still be on the minds of traders. Meanwhile, the European stock
markets bounced back from the weakness of the previous session fueled by
earnings results from major European banks such as HSBC, Societe Generale and
Commerzbank. The unexpected increase in German factory orders also
contributed to the positive mood.
Chg (%)
(Pts)
(Close)
BSE Sensex
1.1
Nifty
1.2
73
6,044
MID CAP
0.8
54
6,505
SMALL CAP
0.6
36
6,126
BSE HC
0.9
77
8,875
BSE PSU
0.4
29
6,821
BANKEX
1.8
255 14,437
AUTO
1.1
123 11,105
METAL
0.1
8,967
OIL & GAS
0.5
42
8,840
BSE IT
0.3
16
6,008
Chg (%)
(Pts)
(Close)
Global Indices
215 19,889
Dow Jones
0.6
NASDAQ
0.1
3,397
FTSE
0.5
36
6,557
Nikkei
3.6
486 14,180
Markets Today
Hang Sang
0.6
132 23,047
The trend deciding level for the day is 19,835 / 6,026 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 19,972 20,055 / 6,068 6,093 levels. However, if NIFTY trades below
19,835 / 6,026 levels for the first half-an-hour of trade then it may correct up to
19,752 19,614 / 6,001 5,958 levels.
Straits Times
0.0
3,383
Shanghai Com
0.2
2,236
Chg (%)
(Pts)
(Close)
INFY
(0.4)
(0.2)
$43.2
WIT
(0.2)
(0.0)
$8.1
IBN
2.9
1.3
$46.4
HDB
0.6
0.2
$42.0
Renewed FII inflows and positive global cues on the back of optimism over U.S.
economic growth sent Indian shares to a three-month high on Tuesday.
Indices
SENSEX
NIFTY
S2
19,614
5,958
S1
19,752
6,001
PIVOT
19,835
6,026
R1
19,972
6,068
R2
20,055
6,093
Indian ADR
87 15,056
News Analysis
Result Review: GSK Pharma, Allahabad Bank, UCO Bank , ITNL, Ceat
Result Preview: HDFC, Lupin Labs , Ranbaxy Labs ,ABB, Corporation bank,
KEC
Refer detailed news analysis on the following page
Advances / Declines
BSE
NSE
Advances
1,339
819
Declines
1,006
571
142
78
Unchanged
Net Inflows (May 06, 2013)

` cr
FII
MFs
Purch
2,406
335
Sales
1,486
535
Net
920
(200)
MTD
3,594
(952)
YTD
64,752
(9,543)
FII Derivatives (May 07, 2013)

` cr
Index Futures
Stock Futures
Purch
1,594
1,161
Sales
1,053
1,684
Net
540
(524)
Open Interest
-
Gainers / Losers
Company
Gainers
Price (`)
chg (%)
Company
Losers
Price (`)
chg (%)
Mphasis
416
10.5
Allahabad Bank
127
(4.8)
Mahindra & MahFin
258
10.3
Gitanjali Gems
603
(2.7)
Century Tex
316
5.8
Wockhardt
1,868
(2.3)
80
5.7
Zee Entert
235
(1.8)
226
5.0
Coromandel Intl
186
(1.8)
Essar Oil
MMTC
www.angelbroking.com
Volumes (` cr)
BSE
1,925
NSE
10,649
Market Outlook
May 8, 2013
Result Review
GSK Pharmaceuticals (CMP: `2378/ TP: -/ Upside: -)
GSK Pharmaceuticals, posted results lower than expectations on the sales front.
The net sales, came in at `632cr during 1QCY2013, a growth of 1.5% yoy. This
was against a expectations of `734cr. Consequently, the OPMs came in at 25.5%
V/s expectations of 30.4%, a contraction of 5.9%. On account of which the net
profit came in at `170cr, a decline of 8.9% during the last corresponding period.
We recommend a neutral on the stock.
Y/E
Sales
Dec
(` cr)
OPM
PAT
EPS ROE
(%) (` cr)
(`)
(%)
P/E
P/BV
EV/EBITDA EV/Sales
(x)
(x)
(x)
(x)
CY2013E
2,937
30.4
622
78.1 31.6 30.4
9.2
19.8
2,937
CY2014E
3,319
30.2
734
86.7 31.9 27.4
8.3
17.4
3,319
Allahabad Bank- (CMP: `127 / TP: Under Review)

Allahabad Bank reported weak operating performance for the quarter, primarily
marred by asset quality pressures. While NII declined by 18.0% yoy (as NIMs
dipped sharply qoq, largely due to interest reversals on slippages and also due to
base rate cuts effected by the bank), non-interest income grew by strong 47.7%
yoy (possibly due to higher treasury income and better recoveries from written-off
accounts). Consequently, the bank reported operating profit decline of 14.8% yoy.
Higher provisioning (up by 37.0% yoy) following the steep deterioration in asset
quality (gross and Net NPA levels higher by 45.5% and 66.6%, qoq respectively),
resulted in earnings decline of 68.5% yoy. Sharp deterioration in asset quality was
on account of higher slippages (at `2,500cr compared to around `1,000cr in last
quarter), major portion of which were chunky in nature (9 accounts contributed
around
`1,600cr).
The
management
has
broadly
guided
for
recovery/upgradations of two of these nine accounts (around `500cr) in coming
few quarters. At CMP, the stock trades at 0.5x FY2015 ABV. Currently, the stock
rating is under review.
Y/E
Op. Inc
NIM
PAT
EPS
ABV
ROA
ROE
P/E
P/ABV
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2014E
7,137
2.8
1,614
32.3 228.0
0.8
14.2
3.9
0.6
FY2015E
7,907
2.8
1,801
36.0 258.3
0.8
14.2
3.5
0.5
March
UCO Bank- (CMP: `73 / TP: - / Upside: -)

UCO Bank posted weak set of numbers for the quarter, as their earnings declined
by 80.4% yoy at `50cr for 4QFY13. NII & non-interest income grew at strong
pace of 28.3% and 25.8% yoy, enabling bank to register Pre-provisioning
operating profit growth of 41.8% yoy at `1,032cr. On the asset quality front,
Gross and Net NPA increased by 6.2% and 3.6% sequentially, however
provisioning expenses grew by 114.1% yoy leading to a PAT decline of 80.4% yoy
to `50cr. At the CMP, the stock trades at 0.8x FY2015E ABV. We maintain our
Neutral recommendation on the stock.
Market Outlook
May 8, 2013
Y/E
Op. Inc
NIM
PAT
EPS
ABV
ROA
ROE
P/E
P/ABV
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2014E
6,126
2.6
1,086
12.2
81.3
0.5
11.8
6.0
0.9
FY2015E
6,665
2.5
1,257
14.4
96.7
0.6
12.6
5.1
0.8
March
ITNL (CMP: `180 / TP: `230/ Upside: 28%)

For 4QFY2013, on a consolidated basis, IL&FS Transportation Networks (ITNL)
posted a mixed set of numbers with decent performance on the top-line front;
however bottom-line was ahead of our estimate mainly due to lower tax provision
provided during the quarter. The company reported consolidated revenue of
`1,931cr (`1,989cr) in 4QFY2013, registering a decline of 2.9% yoy, which was
marginally above our estimate of `1,850cr. EBITDA margins decline sequentially
by 106bp to 24.4% (23.0%) in 4QFY2013, against our estimate of 28.0%. This
was mainly on account of higher revenue contribution from the relatively lowmargin E&C segment during the quarter. Interest cost grew by 30.9% yoy to
`302cr in 4QFY2013 and was higher than our estimate of `284cr. On the
earnings front, ITNL reported subdued growth of 2.1% yoy to `181cr (our estimate
was `157cr) mainly on account of tax credit of `9cr in 4QFY2013 (against tax
paid of `57cr in 4QFY2012). Owing to the recent fall in the stock price we
recommend a Buy on the stock with a target price of `230.
Y/E
Sales OPM
March
(` cr)
FY2014E
7,177
27.4
FY2015E
7,772
28.9
PAT
(%) (` cr)
EPS ROE P/E P/BV EV/EBITDA

(`)
(%)
EV/Sales
(x)
(x)
(x)
(x)
566 29.1
16.3 6.2
0.9
9.7
2.7
623 32.1
15.7 5.6
0.8
9.3
2.7
Ceat (CMP: `119/ TP: `169/ Upside: 42%)

Ceat reported impressive performance for 4QFY2013 led by a strong sequential
EBITDA margin expansion of 218bp on the back of the ~8% qoq decline in
natural rubber prices. Consequently, net profit surged 98.6% qoq (47.1% yoy) to
`61cr, which was significantly above our estimates of `35cr
For 4QFY2013, standalone top-line reported a slightly better-than-expected
growth of 7.1% yoy (8.8% qoq) to `1,311cr which was driven by a strong volume
growth of 9.3% yoy (11.3% qoq). The total volumes in tonnage terms for the
quarter stood at 59,000MT and were driven primarily by a strong 24.2% yoy (21%
qoq) growth in the OEM segment led by new partnerships with Royal Enfield,
Volvo-Eicher and Bajaj Auto. The replacement segment however, posted a muted
growth of 1.2% as the demand in the segment remains weak. The sales-mix for
4QFY2013 in the replacement, OEM and export segments stood at 50%, 25% and
25% respectively as against 54%, 22% and 24% respectively in 4QFY2012. Ceats
net average realization in 4QFY2013 registered a decline of 2.2% yoy (2.4% qoq)
largely due to adverse product-mix (higher OEM share in total-mix). On the
operating front, EBITDA margins jumped sharply by 218bp qoq to 10.6% against
our expectations of 8.8%, as raw-material cost as a percentage of sales witnessed
a significant decline of 206bp qoq led by ~8% decline in the natural rubber
prices. On a yoy basis, EBITDA margins expanded marginally by 28bp as benefits
of lower natural rubber prices (down ~16% yoy) were offset by increase in higher
employee and other expenditure (due to increased marketing spends). Led by a
Market Outlook
May 8, 2013
strong operating performance, net profit on a sequential basis witnessed a

significant growth of 98.6% to `61cr. On a yoy basis too, net profit posted a
strong growth of 47.1% yoy aided by lower interest expense (due to reduction in
debt levels) and lower tax outgo (tax-rate at 22.4% as against 30.9% in
4QFY2012).
We retain our positive view on Ceat and believe that the company will continue to
benefit from the softening of commodity prices. However a slowdown in demand
remains a concern as the replacement demand has not picked up as anticipated.
Nonetheless at `119, the stock is trading at attractive valuations of 2.6x FY2015E
earnings. We maintain our Buy rating on the stock with a target price of `169.
Y/E
March
Sales
(` cr)
OPM
PAT
(%) (` cr)
EPS ROE
(`)
P/E
P/BV
EV/EBITDA EV/Sales
(%)
(x)
(x)
(x)
(x)
FY2014E
5,325
8.4
139
40.6 17.2
2.9
0.5
2.3
0.2
FY2015E
5,974
8.3
171
45.0 18.1
2.6
0.4
2.0
0.2
Result Preview
HDFC (CMP: `853 / TP: - / Upside: -)
HDFC is expected to announce healthy set of results for 4QFY2013. The NII is
expected to increase by 21.3% yoy to `2,265cr. The non-interest income is
expected to come in at `105cr, registering an increase of 22.6% yoy. Operating
Income and Operating profit are expected to grow by 21.4% and 21.3%
respectively. Provisioning is expected to be `49cr compared to `25cr in
4QFY2012. Consequently the PAT is expected to increase by 16.8% yoy to
`1,549cr. We recommend Neutral rating on the stock.
Y/E
Op. Inc
NIM
PAT
EPS
ABV
ROA
ROE
P/E
P/ABV
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2014E
8,928
3.6
5,877
38.4 177.3
1.0
32.5
22.2
4.8
FY2015E
10,684
3.6
6,939
45.3 200.4
1.0
32.4
18.8
4.3
March
Lupin Labs (CMP: `713/ Target: 792/ Upside: 11.0%)

Lupin, is expected to register a strong revenue growth of 32.8%. Its OPM is
expected to expand by 350bp during the period. On account of which the net
profit is to increase by 89.2% in 4QFY2013.We recommend an accumulate on the
stock.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BVEV/EBITDAEV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2014E
11,564
21.1
1,466
32.8
25.7
21.7
5.0
13.4
2.8
FY2015E
13,847
21.1
1,768
39.6
24.7
18.0
4.0
10.9
2.3
Market Outlook
May 8, 2013
Ranbaxy Labs (CMP: `457/ Target: / Upside: )

Ranbaxy is expected to post a decline of 22.9% with sales at `2,850cr during
1QCY2013. OPMs are expected to be 10.0% V/s 21.6% in 1QCY2012. However,
the net profit is likely to come in at `202cr, V/s 936cr during the last
corresponding period. We recommend a neutral on the stock.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
Dec
(` cr)
(%)
(` cr)
(`)
(%)
(x)
P/BVEV/EBITDAEV/Sales
(x)
(x)
(x)
CY2013E
11,400
12.5
912
21.6
20.6
21.2
4.0
11.9
1.5
CY2014E
12,060
12.5
952
22.5
18.5
20.3
3.5
10.8
1.3
ABB (CMP: `525/TP: `452/Downside: 14 %)

For 1QCY2013, we expect ABB India (ABB) to post a flat top line growth yoy to
`1,804cr. ABB's margin will continue to remain under pressure, expected at 5.1%,
due to low margin orders in the power systems and process automation segments.
Consequently, ABB's bottom-line is expected to decline by 10.3% yoy to `43cr. On
account of high valuations, we recommend Reduce on the stock with a target price
of `452.
Y/E
Sales OPM
PAT
EPS
ROE
P/E
Dec
(` cr)
CY2013E
CY2014E
P/BV EV/EBITDA
EV/Sales
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
8,073
5.5
239
11.3
8.9
46.6
4.0
24.6
1.4
9,052
7.2
368
17.4
12.8
30.2
3.7
16.7
1.2
Corporation Bank (CMP: `377 / TP: `453 / Upside: 20.2%)

Corporation Bank is scheduled to announce its 4QFY2013 results today. We
expect the bank to report a 10.0% yoy increase in the NII to `917cr. Non-interest
income is expected to decline by 2.4% yoy to `413cr. Operating expenses are
expected to increase by 20.8% yoy to `535cr, leading to 2.4% yoy decline in preprovisioning profit to `795cr. Provisioning expenses are expected to increase by
29.9% yoy while tax expenses are expected to decline by 57.3% yoy, which would
result in the decline in net profit to 13.9% yoy. At the CMP, the stock is trading at
0.5x FY2014E ABV. We recommend Buy rating on the stock, with a target price of
`453.
Y/E
Op. Inc
NIM
PAT
EPS
ABV
ROA
ROE
P/E
P/ABV
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2014E
5,397
2.2
1,473
96.3 658.4
0.8
14.6
3.9
0.6
FY2015E
5,973
2.2
1,619
105.9 755.2
0.8
14.4
3.6
0.5
March
KEC International (CMP: `53/ TP: `67/Upside: 27%)

For 4QFY2013, KEC International (KEC) is expected to register a strong top-line
growth of 16% yoy to `2,400cr on the back of strong execution of its robust order
book. However, on the EBITDA front, the company's margin is expected to contract
by ~199bp yoy to 6.2% on account of low margin orders in relatively new
segments. Consequently, we expect PAT to decline by 20.3% yoy to `59cr on
Market Outlook
May 8, 2013
account of margin pressure and elevated interest costs. We recommend Buy on the
stock with a target price of `67.
Y/E
Sales OPM
PAT
EPS
ROE
P/E
March
(` cr)
FY2014E
FY2015E
P/BV EV/EBITDA
EV/Sales
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
7,750
6.8
197
7.7
20.8
6.9
1.0
4.9
0.3
8,631
7.0
237
9.2
21.0
5.7
0.9
4.5
0.3
Quarterly Bloomberg Brokers Consensus Estimates

ABB (08/05/2013)
Particulars (` cr)
Net sales
1QCY13E
1QCY12
y-o-y (%)
4QCY12
q-o-q (%)
1,849
1,773
2,053
(10)
67
56
EBITDA
104
98
EBITDA margin (%)
5.6
5.5
Net profit
51
48
17
206
4QFY13E
4QFY12
y-o-y (%)
3QFY13
q-o-q (%)
1,483
1,326
12
1,140
30
4QFY13E
4QFY12
y-o-y (%)
3QFY13
q-o-q (%)
3.2
HDFC (08/05/2013)
Particulars (` cr)
Net profit
Lupin Consolidated (08/05/2013)

Particulars (` cr)
Net sales
2,404
1,883
28
2,466
(3)
EBITDA
541
373
45
605
(11)
EBITDA margin (%)
22.5
19.8
Net profit
318
156
105
335
(5)
1QCY13E
1QCY12
y-o-y (%)
4QCY12
q-o-q (%)
2,670
81
203
24.5
Ranbaxy Consolidated (08/05/2013)

Particulars (` cr)
Net sales
2,679
3,695
(28)
EBITDA
246
1,015
(76)
EBITDA margin (%)
9.2
27.5
Net profit
152
1,247
3.0
(88)
(127)
(220)
Asian Paints Consolidated (09/05/2013)

Particulars (` cr)
4QFY13E
4QFY12
y-o-y (%)
3QFY13
q-o-q (%)
2,919
2,539
15
3,037
(4)
EBITDA
469
383
22
510
(8)
EBITDA margin (%)
16.1
15.1
Net profit
305
260
17
335
(9)
4QFY13E
4QFY12
y-o-y (%)
3QFY13
q-o-q (%)
1,340
1,424
(6)
1,306
Net sales
16.8
Punjab National Bank (09/05/2013)

Particulars (` cr)
Net profit
Market Outlook
May 8, 2013
Union Bank of India (09/05/2013)

Particulars (` cr)
4QFY13E
4QFY12
y-o-y (%)
3QFY13
q-o-q (%)
615
773
(20)
302
103
4QFY13E
4QFY12
y-o-y (%)
3QFY13
q-o-q (%)
3,636
4,236
(14)
2,323
57
EBITDA
339
470
(28)
102
232
EBITDA margin (%)
9.3
11.1
Net profit
161
269
(40)
74
116
4QFY13E
4QFY12
y-o-y (%)
3QFY13
q-o-q (%)
23,973
17,514
37
23,817
1,272
308
313
1,412
(10)
EBITDA margin (%)
5.3
1.8
Net profit
173
(515)
(134)
32
441
4QFY13E
4QFY12
y-o-y (%)
3QFY13
q-o-q (%)
1,121
1,021
10
1,071
EBITDA
206
195
209
(1)
EBITDA margin (%)
18.4
19.1
Net profit
161
145
11
187
(14)
4QFY13E
4QFY12
y-o-y (%)
3QFY13
q-o-q (%)
17,009
16,264
15,775
4,112
4,210
(2)
4,028
24.2
25.9
2,620
2,593
Net profit
Ashok Leyland (10/05/2013)

Particulars (` cr)
Net sales
4.4
Essar Oil (10/05/2013)

Particulars (` cr)
Net sales
EBITDA
5.9
Cummins India (10/05/2013)

Particulars (` cr)
Net sales
19.5
NTPC (10/05/2013)
Particulars (` cr)
Net sales
EBITDA
EBITDA margin (%)
Net profit
25.5
1
2,597
Reliance Communication Consolidated (10/05/2013)

Particulars (` cr)
4QFY13E
4QFY12
y-o-y (%)
3QFY13
q-o-q (%)
Net sales
5,398
4,578
18
4,797
13
EBITDA
1,619
1,332
22
1,488
EBITDA margin (%)
30.0
29.1
Net profit
136
332
31.0
(59)
105
Economic and Political News
SBI's high credit-low deposit growth trend may hit margins: India Ratings
India's growth story credible, FinMin tells Moody's
NCAER pegs FY14 growth at 6.2%
Corporate News
Axis Bank gets NPS trustee bank mandate

AT&T, Wipro expand relationship in M2M space
DLF To Sell Shares Through IPP
Qatar Airways-IndiGo in code share talks
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
29
Market Outlook
May 08, 2013
Result Calendar
Date
Company
May 08, 2013
HDFC, Ranbaxy, Lupin, ABB, Corporation Bank
May 09, 2013
Punjab Natl.Bank, Asian Paints, Union Bank, Indian Bank

NTPC, Cummins India, Central Bank, Ashok Leyland, Apollo Tyres, United Bank, Punj Lloyd, Electrosteel Castings, ITD
Cementation
Dena Bank
May 10, 2013

May 11, 2013
May 12, 2013
May 13, 2013
Nestle, Amara Raja Batteries
May 14, 2013
Dr Reddy's, HT Media
May 16, 2013
Bajaj Auto
May 20, 2013
Adani Enterp., India Cements
May 21, 2013

May 22, 2013
Thermax, LMW, Subros
Source: Bloomberg, Angel Research
Global economic events release calendar

Date
Time
Country Event Description
Unit
Period
Bloomberg Data
Last Reported Estimated
May 8, 2013
4:29PM
China
Exports YoY%
% Change
May 9, 2013
7:00AM
China
Consumer Price Index (YoY)
% Change
Apr
2.10
2.30
2:00PM
UK
Industrial Production (YoY)
% Change
Mar
(2.20)
(1.60)
4:30PM
UK
BOE Announces rates
% Ratio
May 9
0.50
0.50
May 10, 2013
Apr
10.00
9.20
6:00PM
US
Initial Jobless claims
Thousands
May 4
324.00
335.00
11:00AM
India
Industrial Production YoY
% Change
Mar
0.60
--
4:29PM
India
Imports YoY%
% Change
Apr
(2.90)
--
4:29PM
India
Exports YoY%
% Change
Apr
7.00
--
May 13, 2013
11:00AM
China
Industrial Production (YoY)
% Change
Apr
8.90
9.40
May 14, 2013
12:00PM
India
Monthly Wholesale Prices YoY%
% Change
Apr
5.96
--
May 15, 2013
11:30AM
Germany GDP nsa (YoY)
% Change
1Q P
0.10
--
2:00PM
UK
% Change
Apr
(7.00)
--
2:30PM
Euro Zone Euro-Zone GDP s.a. (QoQ)
% Change
1Q A
(0.60)
--
6:00PM
US
Producer Price Index (mom)
% Change
Apr
(0.60)
(0.60)
6:45PM
US
Industrial Production
Apr
0.41
(0.10)
2:30PM
Euro Zone Euro-Zone CPI (YoY)
Apr F
1.70
--
6:00PM
US
Housing Starts
Thousands
Apr
1,036.00
980.00
6:00PM
US
Building permits
Thousands
Apr
907.00
940.00
6:00PM
US
Consumer price index (mom)
% Change
Apr
(0.20)
(0.20)
May 21, 2013
2:00PM
UK
CPI (YoY)
% Change
Apr
2.80
--
May 22, 2013
7:30PM
US
Existing home sales
Millions
Apr
4.92
--
May 23, 2013
1:00PM
Germany PMI Services
Value
May A
49.60
--
1:00PM
Germany PMI Manufacturing
Value
May A
48.10
--
2:00PM
UK
7:30PM
Euro Zone Euro-Zone Consumer Confidence
May 16, 2013
Jobless claims change
GDP (YoY)
7:30PM
US
New home sales
May 28, 2013
7:30PM
US
Consumer Confidence
May 29, 2013
1:25PM
May 30, 2013

May 31, 2013
June 1, 2013
June 3, 2013
% Change
1Q P
0.60
--
Value
May A
(22.30)
--
Thousands
Apr
417.00
--
S.A./ 1985=100
May
68.10
--
Germany Unemployment change (000's)
Thousands
May
4.00
--
6:00PM
US
GDP Qoq (Annualised)
% Change
1Q S
2.50
--
11:00AM
India
Qtrly GDP YoY%
% Change
1Q
4.50
--
6:30AM
China
PMI Manufacturing
Value
May
50.60
--
2:00PM
UK
PMI Manufacturing
Value
May
49.80
--
Market Outlook
May 08, 2013
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends

10.0
(%)
(%)
11.2
6.0
4.0
0.6
(0.1)
Jan-13
Dec-12
Nov-12
(2.8)
Mfg. PMI
58.0
7.5
(0.5)
Exhibit 4: Manufacturing and services PMI
(%)
7.6
(1.0)
Source: MOSPI, Angel Research
Exhibit 3: Monthly WPI inflation trends
7.6
(0.7)
(2.0)
Oct-12
(4.0)
(1.3)
Mar-12
3QFY13
2QFY13
1QFY13
4QFY12
3QFY12
2QFY12
1QFY12
4QFY11
3QFY11
2QFY11
1QFY11
4QFY10
3QFY10
2QFY10
(2.0)
Sep-12
5.3 5.5 5.3

4.5
7.5
2.4
2.0
Aug-12
6.0
Jul-12
5.7
2.5
2.0
Jun-12
6.5
8.0
Services PMI
8.1
7.3
7.2
7.3
6.6
56.0
6.8
6.0
54.0
52.0
Apr-13
Mar-13
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Jul-12
Aug-12
Jun-12
May-12
Apr-12
Mar-12
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Exhibit 5: Exports and imports growth trends

(%)
48.0
Feb-12
Mar-13
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
Jun-12
May-12
Apr-12
50.0
Source: MOSPI, Angel Research
Exports yoy growth
Exhibit 6: Key policy rates

Repo rate
(%)
9.00
Imports yoy growth
30.0
Reverse Repo rate
CRR
7.50
8.00
15.0
7.00
6.50
6.00
4.00
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
Jun-12
Source: RBI, Angel Research
Mar-13
4.00
3.00
May-12
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
5.00
Apr-12
(30.0)
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Mar-12
0.0
(15.0)
Feb-13
7.5
May-12
7.6
7.5
8.2
Apr-12
8.5
Source: CSO, Angel Research
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
8.4
8.0
9.2
9.0
1QFY10
12.0
11.0
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
Market Outlook
May 08, 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
139
2,707
1,657
1,906
14.1
14.1
7.7
8.9
18.1
15.6
3.8
3.2
22.2
21.9
1.6
1.3
United Phosphorus
Buy
148
232
6,535
10,298
11,310
16.5
16.5
20.5
23.2
7.2
6.4
1.2
1.0
18.0
17.4
0.6
0.5
Amara Raja Batteries
Buy
271
326
4,626
3,418
3,892
15.1
14.9
19.8
21.7
13.7
12.5
3.3
2.7
27.1
23.7
1.3
1.2
Apollo Tyres
Neutral
100
5,060
14,401
15,841
11.4
11.5
13.6
15.9
7.4
6.3
1.3
1.1
18.4
18.2
0.5
0.4
Ashok Leyland
Accumulate
23
27
6,186
13,833
16,192
9.6
9.7
2.0
2.7
11.8
8.8
2.0
1.8
12.1
15.2
0.5
0.4
Automotive Axle#
Neutral
271
410
834
965
9.3
10.6
17.3
27.1
15.7
10.0
1.5
1.4
9.5
14.0
0.6
0.5
Bajaj Auto
Accumulate
1,849
2,014
53,513
22,552
25,498
18.6
18.6
117.9
134.3
15.7
13.8
5.7
4.5
40.2
36.6
2.0
1.6
Bharat Forge
Neutral
245
5,699
6,198
6,793
14.6
14.9
14.5
17.3
16.8
14.1
2.2
2.0
13.6
14.7
1.0
0.9
Bosch India*
Neutral
8,950
28,103
9,821
11,394
17.0
17.3
373.5
438.7
24.0
20.4
4.3
3.7
18.0
17.9
2.5
2.1
CEAT
Buy
119
155
406
5,403
6,057
8.3
8.3
36.4
41.3
3.3
2.9
0.5
0.4
15.3
16.6
0.3
0.2
Exide Industries
Accumulate
138
150
11,688
7,053
8,061
14.2
14.5
7.8
9.1
17.6
15.1
3.0
2.6
18.1
18.2
1.4
1.2
FAG Bearings*
Neutral
1,430
2,376
1,525
1,742
14.5
15.7
88.4
109.5
16.2
13.1
2.3
2.0
15.5
16.5
1.4
1.2
Hero Motocorp
Accumulate
1,707
1,819
34,095
25,274
27,658
14.1
13.7
110.2
139.9
15.5
12.2
5.6
4.4
39.8
40.7
1.1
1.0
JK Tyre
Buy
116
154
474
7,972
8,754
7.1
7.1
37.5
44.0
3.1
2.6
0.5
0.4
16.4
16.6
0.3
0.3
Auto & Auto Ancillary
Mahindra and Mahindra Neutral
959
58,881
44,550
50,260
11.4
11.7
59.6
68.3
16.1
14.1
3.3
2.8
22.3
21.6
1.1
0.9
Maruti
Accumulate
1,692
1,847
48,879
48,455
55,723
11.2
10.9
107.8
123.2
15.7
13.7
2.4
2.0
16.2
16.0
0.8
0.7
Motherson Sumi
Accumulate
200
222
11,737
28,442
31,493
7.5
7.8
12.5
14.8
16.0
13.5
3.9
3.1
27.5
25.8
0.6
0.5
Subros
Accumulate
26
30
157
1,479
1,685
10.0
9.9
5.5
7.5
4.8
3.5
0.5
0.5
11.1
13.7
0.4
0.3
Tata Motors
Accumulate
299
324
79,579 206,341 227,695
12.8
13.5
32.3
39.0
9.3
7.7
2.0
1.6
23.1
23.2
0.5
0.4
TVS Motor
Neutral
41
1,962
7,715
8,584
6.0
6.1
5.0
5.8
8.3
7.1
1.4
1.2
18.1
18.5
0.2
0.1
ABB*
Reduce
525
452
11,120
8,073
9,052
5.5
7.2
11.3
17.4
46.6
30.2
4.0
3.7
8.9
12.8
1.4
1.2
BGR Energy
Neutral
200
1,443
4,114
4,886
11.4
10.7
24.9
28.0
8.0
7.1
1.1
1.0
25.2
22.6
0.7
0.6
BHEL
Neutral
197
48,095
43,757
40,934
17.3
16.9
20.9
19.0
9.4
10.4
2.1
1.9
23.7
18.8
1.0
1.0
Blue Star
Buy
170
230
1,528
2,896
3,087
5.6
6.2
9.3
11.7
18.3
14.5
3.0
2.6
17.6
19.2
0.6
0.5
Crompton Greaves
Buy
98
117
6,290
13,790
15,095
6.4
7.4
6.9
9.4
14.3
10.5
1.6
1.4
11.7
14.5
0.5
0.4
Jyoti Structures
Accumulate
31
34
258
3,074
3,355
9.0
8.8
8.7
10.2
3.6
3.1
0.3
0.3
10.4
11.1
0.3
0.2
KEC International
Buy
53
67
1,363
7,750
8,631
6.8
7.0
7.7
9.2
6.9
5.7
1.0
0.9
20.8
20.8
0.3
0.3
Thermax
Neutral
582
6,934
5,931
6,592
9.6
9.7
31.0
34.3
18.8
17.0
3.3
2.9
18.6
17.9
1.0
0.9
1,225
1,361
23,004
12,182
13,435
21.0
22.4
78.7
98.8
15.6
12.4
2.8
2.5
19.0
21.4
1.6
1.4
Capital Goods
Cement
ACC
Accumulate
Market Outlook
May 08, 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
186
28,695
10,681
11,991
25.0
25.5
10.8
12.8
17.2
14.6
3.0
2.7
18.1
19.4
2.2
1.8
India Cements
Neutral
88
2,712
4,777
5,276
17.3
17.1
8.8
10.9
10.0
8.1
0.7
0.7
7.5
8.8
0.9
0.8
J K Lakshmi Cement
Buy
105
143
1,232
2,313
2,728
19.8
20.7
16.6
23.1
6.3
4.5
0.8
0.7
13.6
16.5
1.1
0.9
Madras Cements
Neutral
245
5,841
4,293
4,855
27.4
28.6
21.8
28.2
11.3
8.7
2.0
1.7
19.6
21.3
1.8
1.5
Shree Cement^
Neutral
4,622
16,101
6,540
7,452
27.4
26.6
319.7
369.9
14.5
12.5
3.6
2.9
27.5
25.4
1.8
1.4
UltraTech Cement
Neutral
1,927
52,840
21,947
25,049
23.8
23.8
106.1
119.8
18.2
16.1
3.0
2.6
17.7
17.3
2.5
2.1
224
272
1,177
2,013
2,293
22.5
22.5
26.0
24.4
8.6
9.2
1.0
0.9
11.7
9.9
2.2
2.0
12
212
2,281
2,492
5.9
6.9
0.7
2.0
16.9
5.7
0.4
0.4
2.3
6.5
0.4
0.3
Construction
Ashoka Buildcon
Buy
Consolidated Co
Neutral
IRB Infra
Buy
121
167
4,012
4,152
4,624
44.4
45.0
17.0
17.2
7.1
7.0
1.1
1.0
16.2
14.6
3.4
3.4
ITNL
Buy
180
230
3,499
7,177
7,772
27.4
28.9
29.4
32.4
6.1
5.6
1.0
0.8
16.5
15.9
2.7
2.7
IVRCL Infra
Buy
21
35
635
6,287
6,836
8.5
8.5
2.3
3.0
8.8
6.8
0.3
0.3
3.4
4.2
0.5
0.5
Jaiprakash Asso.
Buy
76
90
16,909
14,850
15,631
24.9
25.1
2.5
2.9
30.1
26.7
1.2
1.2
4.2
4.7
3.0
2.9
Larsen & Toubro
Accumulate
1,578
1,795
97,149
69,586
79,247
11.2
11.1
75.1
84.9
21.0
18.6
3.0
2.6
15.2
15.0
1.6
1.4
Nagarjuna Const.
Buy
33
45
858
6,576
7,264
8.2
8.3
4.1
4.8
8.2
7.0
0.3
0.3
4.2
4.7
0.5
0.5
Punj Lloyd
Neutral
56
1,845
1,338
1,542
10.2
10.2
3.0
4.8
18.7
11.7
0.6
0.6
3.4
5.2
5.6
5.3
Sadbhav Engg.
Buy
114
153
1,713
2,511
2,736
10.6
10.6
7.3
7.8
15.7
14.6
2.0
1.7
13.3
12.7
0.9
0.8
Simplex Infra
Buy
116
164
573
6,824
7,563
9.2
9.4
18.0
23.4
6.4
5.0
0.4
0.4
6.9
8.3
0.5
0.4
Unity Infra
Buy
31
45
231
2,455
2,734
13.4
13.0
14.6
14.9
2.1
2.1
0.3
0.2
12.3
11.3
0.5
0.5
Allahabad Bank
Buy
127
155
6,325
7,137
7,907
2.9
2.8
32.3
36.0
3.9
3.5
0.6
0.5
14.2
14.2
Andhra Bank
Neutral
91
5,087
5,285
5,937
3.0
2.9
21.2
23.4
4.3
3.9
0.6
0.6
13.4
13.4
Axis Bank
Buy
1,504
1,737
70,415
19,055
22,710
3.3
3.2
130.7
152.3
11.5
9.9
1.9
1.6
17.2
17.6
Bank of Baroda
Buy
705
815
29,696
16,318
18,682
2.4
2.4
121.4
144.6
5.8
4.9
0.8
0.7
15.2
16.0
Bank of India
Accumulate
333
360
19,814
14,284
16,295
2.3
2.3
55.9
68.4
6.0
4.9
0.9
0.7
13.9
15.2
Bank of Maharashtra
Neutral
56
3,678
4,289
4,670
2.9
2.8
11.6
13.1
4.8
4.3
0.7
0.6
15.7
15.6
Canara Bank
Buy
400
461
17,707
11,673
13,208
2.3
2.3
74.8
85.8
5.3
4.7
0.7
0.7
13.7
14.1
Central Bank
Neutral
69
7,197
8,079
9,086
2.6
2.6
14.9
18.0
4.6
3.8
0.7
0.6
12.2
13.3
Corporation Bank
Buy
377
453
5,766
5,397
5,973
2.2
2.2
96.3
105.9
3.9
3.6
0.6
0.5
14.6
14.4
Dena Bank
Accumulate
92
101
3,214
3,334
3,700
2.7
2.7
23.6
26.5
3.9
3.5
0.6
0.5
15.5
15.3
Federal Bank
Neutral
452
7,722
2,916
3,389
3.3
3.3
50.1
59.4
9.0
7.6
1.1
1.0
12.8
13.7
Financials
Market Outlook
May 08, 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
Neutral
853
131,864
8,928
10,684
3.7
3.7
38.4
45.3
22.2
18.8
4.8
4.3
32.5
32.4
HDFC Bank
Neutral
687
163,633
27,682
33,916
4.6
4.6
35.3
42.7
19.5
16.1
3.8
3.2
21.3
21.8
ICICI Bank
Buy
1,164
1,352
134,257
25,705
30,330
3.1
3.2
83.9
96.3
13.9
12.1
1.8
1.7
15.2
15.7
IDBI Bank
Neutral
88
11,748
9,137
10,041
1.9
2.0
17.8
18.8
5.0
4.7
0.6
0.5
11.7
11.3
Indian Bank
Buy
163
193
7,007
6,276
6,968
3.1
3.1
38.3
42.3
4.3
3.9
0.6
0.6
15.2
14.9
IOB
Accumulate
63
70
5,836
8,205
9,048
2.6
2.5
16.4
20.3
3.9
3.1
0.5
0.4
11.6
13.1
J & K Bank
Neutral
1,357
6,577
3,032
3,118
3.8
3.5
218.1
200.9
6.2
6.8
1.2
1.0
19.9
16.0
LIC Housing Finance
Accumulate
247
281
12,473
2,113
2,525
2.3
2.3
25.4
29.2
9.7
8.5
1.7
1.5
18.4
18.3
Oriental Bank
Accumulate
256
282
7,472
6,791
7,478
2.7
2.7
56.7
63.4
4.5
4.0
0.6
0.5
12.9
13.1
Punjab Natl.Bank
Buy
748
889
26,422
21,161
24,166
3.3
3.3
153.4
176.4
4.9
4.2
0.8
0.7
16.1
16.3
South Ind.Bank
Neutral
St Bk of India
Accumulate
Syndicate Bank
25
3,293
1,826
2,081
3.0
2.9
4.0
4.5
6.1
5.5
1.0
0.9
17.6
17.1
2,256
2,567
154,342
67,091
76,746
3.2
3.1
241.2
280.4
9.4
8.1
1.5
1.3
16.5
17.0
Neutral
129
7,735
7,340
8,212
2.9
2.8
26.4
28.7
4.9
4.5
0.7
0.6
15.8
15.2
UCO Bank
Reduce
73
68
5,528
6,126
6,665
2.6
2.5
12.2
14.4
6.0
5.1
0.9
0.8
11.8
12.6
Union Bank
Accumulate
242
264
14,448
11,226
12,769
2.7
2.7
41.0
47.8
5.9
5.1
0.8
0.7
14.8
15.4
United Bank
Accumulate
60
68
2,230
3,597
4,008
2.6
2.7
16.0
20.8
3.7
2.9
0.5
0.4
12.5
14.7
Vijaya Bank
Neutral
52
2,597
2,600
2,946
2.0
2.1
9.7
11.0
5.4
4.8
0.6
0.6
11.4
11.7
Yes Bank
Neutral
508
18,232
4,390
5,411
2.8
2.8
41.6
47.9
12.2
10.6
2.6
2.2
23.2
22.1
Asian Paints
Neutral
4,898
46,977
13,319
15,805
15.7
15.7
143.8
170.2
34.1
28.8
10.7
8.4
35.1
32.7
3.4
2.9
Britannia
Neutral
577
6,901
6,417
7,446
5.1
5.5
20.3
25.2
28.5
22.9
9.7
7.7
37.4
37.3
1.0
0.8
Colgate
Neutral
1,513
20,569
3,588
4,130
21.1
21.6
44.7
51.9
33.8
29.2
30.4
22.7
100.0
89.1
5.5
4.8
Dabur India
Neutral
162
28,183
7,183
8,340
16.8
16.8
5.4
6.3
30.1
25.7
11.7
9.1
41.5
40.1
3.9
3.3
GlaxoSmith Con*
Neutral
4,028
16,941
3,617
4,260
16.1
16.4
120.6
146.4
33.4
27.5
10.3
8.3
33.8
33.4
4.3
3.6
Godrej Consumer
Neutral
839
28,555
7,801
9,017
17.0
17.0
26.5
31.9
31.7
26.3
7.2
5.9
26.5
25.9
3.8
3.2
HUL
Neutral
580
125,326
29,167
33,164
13.6
13.7
17.1
18.4
33.9
31.5
32.6
23.6
113.4
87.0
4.1
3.6
ITC
Neutral
335
264,869
33,506
39,067
36.8
37.0
11.1
13.0
30.2
25.8
9.8
8.0
35.5
34.1
7.6
6.5
Marico
Neutral
219
14,130
5,352
6,204
14.0
14.0
7.9
9.8
27.7
22.4
5.7
4.6
22.8
22.9
2.6
2.2
Nestle*
Neutral
4,870
46,956
9,739
11,307
21.5
22.2
131.6
159.9
37.0
30.5
18.7
13.4
58.8
69.5
4.7
4.0
Tata Global
Neutral
149
9,217
7,998
8,798
9.7
9.8
7.9
8.7
18.9
17.1
2.3
2.2
9.6
9.8
1.1
1.0
FMCG
Market Outlook
May 08, 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
753
863
52,404
28,633
32,216
21.5
20.7
57.3
61.7
13.1
12.2
3.1
2.6
24.0
21.5
1.7
1.4
85
102
2,526
2,091
2,289
19.0
18.8
10.6
11.3
8.0
7.5
1.8
1.6
22.8
21.7
1.0
0.9
IT
HCL Tech^
Accumulate
Hexaware*
Buy
Infosys
Neutral
2,349
134,865
43,338
47,244
27.5
27.7
169.4
182.6
13.9
12.9
2.9
2.5
20.8
19.3
2.5
2.1
Infotech Enterprises
Neutral
178
1,982
1,956
2,174
17.9
17.7
20.4
21.9
8.7
8.1
1.3
1.1
14.7
13.7
0.6
0.5
KPIT Cummins
Buy
106
135
2,046
2,513
2,819
16.1
15.5
12.6
14.0
8.4
7.6
1.5
1.2
17.9
16.6
0.8
0.6
Mahindra Satyam
Buy
115
143
13,522
8,456
9,385
19.3
19.1
10.6
11.9
10.9
9.7
2.4
1.9
22.4
20.1
1.2
0.9
Mindtree
Accumulate
865
920
3,595
2,599
2,871
19.4
19.2
85.2
92.3
10.2
9.4
2.1
1.7
21.4
18.9
1.1
0.9
Mphasis&
Reduce
416
395
8,741
6,096
6,646
17.6
17.4
38.1
41.6
10.9
10.0
1.6
1.4
14.2
13.7
0.9
0.8
NIIT
Buy
24
30
395
1,144
1,267
9.0
9.1
4.3
5.4
5.6
4.4
0.6
0.5
10.3
12.0
0.1
0.1
Persistent
Buy
515
593
2,061
1,445
1,617
25.2
25.0
55.3
59.3
9.3
8.7
1.7
1.4
18.2
16.5
1.0
0.8
TCS
Accumulate
1,469
1,585
287,526
71,833
81,893
28.4
28.0
78.5
88.0
18.7
16.7
5.7
4.7
30.2
27.9
3.8
3.3
Tech Mahindra
Buy
1,004
1,230
12,857
7,699
8,315
19.3
18.1
107.0
115.0
9.4
8.7
2.0
1.7
21.7
19.1
1.7
1.4
Wipro
Accumulate
352
385
86,624
40,173
43,697
20.4
20.6
26.2
28.5
13.4
12.3
2.6
2.3
19.7
18.4
1.6
1.4
D B Corp
Accumulate
246
272
4,511
1,787
1,974
25.4
26.4
14.5
16.9
16.9
14.6
3.5
3.0
22.4
22.2
2.4
2.1
HT Media
Accumulate
105
117
2,458
2,205
2,380
15.1
15.6
8.0
9.1
13.1
11.6
1.4
1.3
11.2
11.4
0.7
0.6
Jagran Prakashan
Buy
91
121
3,007
1,698
1,908
23.9
24.5
7.4
8.4
12.3
10.8
3.1
2.7
26.7
26.8
1.9
1.7
PVR
Neutral
341
1,351
1,343
1,521
18.8
18.9
18.3
22.9
18.6
14.9
1.8
1.9
10.6
12.3
1.0
0.9
Sun TV Network
Neutral
433
17,080
2,293
2,571
68.7
68.7
19.3
22.7
22.4
19.1
5.5
4.8
26.1
27.3
6.9
6.0
Bhushan Steel
Neutral
464
10,514
13,794
17,335
30.7
34.8
48.9
83.6
9.5
5.6
1.0
0.9
11.2
16.7
2.4
1.9
Coal India
Accumulate
310
345
195,807
72,174
76,311
33.3
28.4
28.4
30.9
10.9
10.0
3.0
2.6
37.6
36.2
1.9
1.7
Electrosteel Castings
Buy
17
26
557
2,074
2,176
10.4
11.3
1.9
2.3
9.0
7.5
0.1
0.1
3.7
4.3
0.5
0.2
GMDC
Buy
153
213
4,853
1,944
2,317
49.9
51.7
20.8
25.6
7.4
6.0
1.6
1.3
24.3
24.6
2.0
1.5
Hind. Zinc
Buy
123
145
52,140
12,358
13,659
51.4
51.6
16.0
17.6
7.7
7.0
1.4
1.2
19.4
18.4
1.9
1.4
Hindalco
Neutral
102
19,510
88,987
94,163
9.2
9.7
13.8
15.9
7.4
6.4
0.5
0.5
7.6
8.1
0.6
0.5
JSW Steel
Neutral
722
16,099
39,524
42,064
17.1
16.9
71.8
86.3
10.1
8.4
0.8
0.8
8.6
9.6
0.7
0.6
MOIL
Accumulate
223
243
3,751
954
1,062
45.5
47.4
26.1
29.1
8.6
7.7
1.2
1.1
15.1
15.2
1.4
1.1
Monnet Ispat
Buy
192
291
1,222
2,883
3,181
21.7
23.6
40.3
57.7
4.8
3.3
0.4
0.4
10.1
13.0
1.3
1.1
Nalco
Neutral
35
9,007
8,187
8,416
14.5
14.7
3.2
3.3
10.9
10.7
0.7
0.7
6.8
6.7
0.6
0.6
NMDC
Buy
130
179
51,462
10,329
12,540
73.8
75.0
16.6
19.0
7.8
6.8
1.5
1.3
20.6
20.2
2.8
2.2
Media
Metals & Mining
Market Outlook
May 08, 2013
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
( )
Price ( )
( cr )
FY14E
FY15E
OPM(%)
EPS ( )
FY14E
FY15E
FY14E
PER(x)
P/BV(x)
RoE(%)
FY15E
FY14E
FY15E
FY14E
FY15E
FY14E
EV/Sales(x)
FY15E
FY14E
FY15E
Metals & Mining

SAIL
Neutral
64
26,412
53,685
64,183
9.3
12.2
5.5
8.3
11.7
7.8
0.6
0.6
5.4
7.7
0.8
0.8
Sesa Goa
Neutral
164
14,253
3,742
4,426
32.9
32.8
30.0
29.8
5.5
5.5
0.7
0.7
14.3
12.5
4.6
3.8
Sterlite Inds
Neutral
99
33,119
44,462
45,568
23.2
24.7
18.1
20.2
5.4
4.9
0.6
0.5
11.3
11.4
0.7
0.6
Tata Steel
Buy
324
430
31,453 141,775 151,672
10.5
11.4
35.3
51.7
9.2
6.3
0.7
0.6
7.6
10.3
0.6
0.5
Sarda
Buy
105
153
376
1,494
1,568
19.1
20.3
31.3
36.5
3.3
2.9
0.4
0.3
11.8
12.4
0.6
0.5
Prakash Industries
Godawari Power and
Ispat
Oil & Gas
Buy
37
48
504
2,668
2,834
10.0
10.1
4.6
5.2
8.1
7.3
0.2
0.2
3.2
3.4
0.5
0.5
Buy
86
118
283
2,425
2,552
13.7
14.8
33.5
45.3
2.6
1.9
0.3
0.2
11.2
13.1
0.5
0.4
Cairn India
Accumulate
306
345
58,540
16,482
16,228
69.4
53.3
53.3
49.6
5.8
6.2
0.9
0.8
16.5
13.6
2.2
1.9
GAIL
Neutral
343
43,445
55,815
63,013
15.3
15.2
35.9
41.5
9.5
8.3
1.5
1.3
17.0
17.1
0.7
0.5
ONGC
Accumulate
320
354
273,690 157,962 175,367
35.1
36.2
34.3
39.3
9.3
8.2
1.6
1.4
18.2
18.6
1.5
1.3
Reliance Industries
Neutral
827
267,098 380,031 407,721
9.9
69.3
69.3
78.0
11.9
10.6
1.2
1.1
11.5
11.7
0.7
0.6
Gujarat Gas*
Neutral
251
3,224
3,707
3,850
11.7
12.4
23.7
25.7
10.6
9.8
3.0
2.6
29.6
28.2
0.7
0.7
Indraprastha Gas
Neutral
309
4,329
3,700
4,218
23.4
22.8
26.6
30.4
11.6
10.2
2.4
2.0
22.6
21.7
1.2
1.0
Petronet LNG
Gujarat State Petronet
Ltd.
Pharmaceuticals
Buy
141
167
10,598
40,356
40,872
5.8
6.4
15.0
16.7
9.4
8.4
2.0
1.7
23.0
21.5
0.3
0.3
65
3,683
1,079
983
91.8
91.9
8.8
7.8
7.5
8.4
1.3
1.1
17.8
14.1
3.1
3.4
Alembic Pharma
Accumulate
127
139
2,387
1,736
2,008
17.1
18.9
10.7
13.9
11.8
9.1
3.7
2.8
35.0
34.7
1.4
1.2
Aurobindo Pharma
Buy
194
264
5,661
6,279
7,033
16.0
16.0
15.2
19.2
12.8
10.1
1.7
1.4
19.2
18.0
1.4
1.2
Aventis*
Neutral
2,504
5,766
1,682
1,917
16.6
16.6
92.4
99.1
27.1
25.3
3.8
3.8
15.7
14.8
3.1
2.5
Cadila Healthcare
Buy
775
962
15,865
7,386
8,863
18.0
18.0
39.5
48.1
19.6
16.1
4.4
3.6
24.8
24.7
2.4
2.0
Cipla
Accumulate
408
463
32,771
9,130
10,543
24.8
23.0
21.6
23.2
18.9
17.6
3.1
2.7
17.6
16.2
3.3
2.8
Dr Reddy's
Neutral
1,994
33,843
11,662
13,101
21.0
20.8
92.9
103.9
21.5
19.2
4.1
3.5
20.8
19.6
3.1
2.7
Dishman Pharma
Buy
GSK Pharma*
Neutral
Indoco Remedies
Neutral
75
206
604
1,536
1,739
20.2
20.9
15.4
20.6
4.9
3.6
0.5
0.5
11.6
13.7
1.0
0.8
2,378
20,146
2,993
3,319
30.4
30.2
78.1
86.7
30.5
27.4
9.2
8.3
31.6
31.9
5.9
5.2
Buy
62
90
570
784
902
15.2
15.2
7.8
9.0
7.9
6.9
1.2
1.0
15.6
15.8
0.9
0.8
Ipca labs
Buy
569
676
7,182
3,474
4,168
21.0
21.0
37.3
45.1
15.3
12.6
3.6
2.9
26.4
25.3
2.2
1.8
Lupin
Accumulate
713
792
31,932
11,564
13,847
21.1
21.1
32.8
39.6
21.8
18.0
5.0
4.0
25.7
24.7
2.8
2.3
Ranbaxy*
Neutral
457
19,315
11,400
12,060
12.5
12.5
21.6
22.5
21.1
20.3
4.0
3.5
20.6
18.5
1.6
1.5
Sun Pharma
Reduce
991
888
102,421
12,563
14,698
42.6
42.6
29.8
35.5
33.2
27.9
5.9
5.0
19.2
19.3
7.5
6.2
72
78
1,084
1,535
1,570
31.9
31.6
13.1
14.1
5.5
5.1
0.7
0.6
12.4
12.2
1.0
0.8
Power
GIPCL
Accumulate
Market Outlook
May 08, 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
Neutral
158
130,155
81,951
92,264
24.1
24.3
13.6
14.9
11.6
10.6
1.5
1.3
13.0
13.1
2.3
2.2
DLF
Buy
239
288
40,659
9,699
12,010
37.0
36.9
6.0
8.4
40.1
28.5
1.5
1.4
3.8
5.1
5.6
4.6
MLIFE
Accumulate
414
446
1,691
888
1,002
26.7
25.9
36.3
40.6
11.4
10.2
1.2
1.1
10.8
11.0
2.1
1.9
Bharti Airtel
Neutral
330
125,337
86,933
96,121
30.2
31.2
10.3
15.7
32.1
21.1
2.2
2.0
7.0
9.7
2.2
1.8
Idea Cellular
Neutral
132
43,789
24,959
27,232
27.1
27.5
3.7
4.7
35.5
28.1
2.9
2.6
8.1
9.2
2.2
1.9
Rcom
Neutral
113
23,231
22,221
24,253
32.0
32.2
4.3
6.4
26.0
17.5
0.6
0.6
2.4
3.4
2.6
2.2
11.8
12.4
71.2
83.0
20.2
17.4
4.1
3.5
21.6
21.5
1.4
1.1
Power
NTPC
Real Estate
Telecom
Others
Abbott India*
Buy
1,440
1,659
3,059
1,863
2,081
Bajaj Electricals
Buy
181
237
1,807
3,929
4,480
7.4
7.7
15.5
19.7
11.7
9.2
2.0
1.7
17.4
18.7
0.5
0.4
Cera Sanitaryware
Buy
457
562
579
630
795
14.4
13.6
42.8
51.1
10.7
9.0
2.5
2.0
26.6
25.2
0.9
0.7
Cravatex
Buy
404
566
104
308
351
7.0
7.0
39.6
47.2
10.2
8.6
2.2
1.8
21.8
21.0
0.4
0.4
Finolex Cables
Buy
53
68
804
2,563
2,899
9.8
9.8
10.1
11.3
5.2
4.7
0.8
0.6
14.3
13.8
0.2
0.2
Force Motors
Buy
379
570
494
2,299
2,621
4.7
4.9
46.3
57.0
8.2
6.7
0.4
0.4
5.0
5.8
0.1
0.1
Goodyear India*
Buy
293
352
676
1,453
1,560
9.4
9.8
38.4
41.4
7.6
7.1
1.6
1.4
22.9
20.8
0.3
0.2
Hitachi
Buy
140
177
380
1,053
1,169
6.3
7.1
13.8
17.7
10.1
7.9
1.4
1.2
15.0
16.7
0.4
0.4
Honeywell Automation* Buy
2,450
2,842
2,166
2,117
2,491
8.1
7.8
137.9
157.9
17.8
15.5
2.7
2.3
16.0
15.8
0.9
0.8
IFB Agro
Buy
170
198
153
495
651
12.7
12.9
29.3
39.5
5.8
4.3
0.8
0.7
15.4
17.6
0.4
0.3
ITD Cementation
Buy
181
238
208
1,430
1,573
12.1
12.2
21.8
30.6
8.3
5.9
0.5
0.5
6.1
8.0
0.6
0.6
Jyothy Laboratories
Neutral
181
2,916
979
1,164
14.9
15.1
6.0
7.7
30.1
23.5
3.7
3.4
12.9
15.1
3.1
2.6
MRF
Neutral
14,166
6,008
11,799
12,587
14.1
13.5 1,792.4 1,802.0
7.9
7.9
1.7
1.4
23.5
19.2
0.6
0.5
Page Industries
Neutral
3,800
4,238
1,047
1,281
19.6
19.8
127.3
158.1
29.8
24.0
14.3
10.4
54.9
50.0
4.1
3.4
Relaxo Footwears
Buy
573
786
687
1,148
1,360
11.7
11.9
55.5
71.4
10.3
8.0
2.4
1.9
26.3
26.2
0.7
0.6
Siyaram Silk Mills
Buy
242
312
227
1,157
1,320
11.9
12.0
66.6
77.9
3.6
3.1
0.6
0.5
18.3
18.2
0.4
0.4
S. Kumars Nationwide
Neutral
207
6,765
7,393
18.1
18.0
6.4
7.5
1.1
0.9
0.1
0.1
6.1
6.7
0.6
0.6
Styrolution ABS India*
Accumulate
539
617
948
1,068
1,223
9.6
9.6
38.1
44.1
14.2
12.2
1.9
1.7
14.5
14.7
0.9
0.7
TAJ GVK
Buy
62
108
388
300
319
35.8
36.2
7.9
9.1
7.8
6.8
1.0
0.9
13.9
14.4
1.6
1.4
Tata Sponge Iron
Buy
288
371
444
814
849
17.0
17.6
64.6
69.2
4.5
4.2
0.6
0.5
14.5
13.8
0.2
TTK Healthcare
Accumulate
510
553
396
435
516
6.2
7.1
24.3
33.3
21.0
15.3
3.5
3.0
17.6
20.8
0.7
0.6
Tree House
Neutral
274
986
150
192
52.7
52.5
12.8
16.2
21.4
16.9
2.1
1.9
10.0
11.1
6.2
4.7
TVS Srichakra
Buy
185
226
142
1,591
1,739
7.1
7.4
39.4
56.5
4.7
3.3
0.9
0.8
20.6
25.0
0.3
0.3
Market Outlook
May 08, 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
2,347
30,702
11,886
13,491
14.4
14.0
50.9
74.5
46.1
31.5
3.8
3.4
10.6
11.4
2.9
2.5
369
439
749
600
638
20.1
19.4
35.7
36.6
10.4
10.1
1.9
1.6
19.4
17.1
1.0
0.9
Others
United Spirits
Neutral
Vesuvius India*
Buy
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on May 07, 2013
Market Outlook
May 08, 2013

Market Outlook, 08.05.13

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Market Outlook, 08.05.13

Uploaded by

Copyright:

Available Formats

Market Outlook

OIL & GAS

Net Inflows (May 06, 2013)

FII Derivatives (May 07, 2013)

Mahindra & MahFin

78.1 31.6 30.4

86.7 31.9 27.4

Allahabad Bank- (CMP: `127 / TP: Under Review)

UCO Bank- (CMP: `73 / TP: - / Upside: -)

Neutral recommendation on the stock.

ITNL (CMP: `180 / TP: `230/ Upside: 28%)

EPS ROE P/E P/BV EV/EBITDA

Ceat (CMP: `119/ TP: `169/ Upside: 42%)

strong operating performance, net profit on a sequential basis witnessed a

Lupin Labs (CMP: `713/ Target: 792/ Upside: 11.0%)

Ranbaxy Labs (CMP: `457/ Target: / Upside: )

ABB (CMP: `525/TP: `452/Downside: 14 %)

Corporation Bank (CMP: `377 / TP: `453 / Upside: 20.2%)

KEC International (CMP: `53/ TP: `67/Upside: 27%)

Quarterly Bloomberg Brokers Consensus Estimates

EBITDA margin (%)

Lupin Consolidated (08/05/2013)

EBITDA margin (%)

Ranbaxy Consolidated (08/05/2013)

EBITDA margin (%)

Asian Paints Consolidated (09/05/2013)

EBITDA margin (%)

Punjab National Bank (09/05/2013)

Union Bank of India (09/05/2013)

EBITDA margin (%)

EBITDA margin (%)

EBITDA margin (%)

Ashok Leyland (10/05/2013)

Essar Oil (10/05/2013)

Cummins India (10/05/2013)

Reliance Communication Consolidated (10/05/2013)

EBITDA margin (%)

Economic and Political News

Axis Bank gets NPS trustee bank mandate

May 08, 2013

HDFC, Ranbaxy, Lupin, ABB, Corporation Bank

May 09, 2013

Punjab Natl.Bank, Asian Paints, Union Bank, Indian Bank

May 10, 2013

Nestle, Amara Raja Batteries

May 14, 2013

May 16, 2013

May 20, 2013

Adani Enterp., India Cements

May 21, 2013

Thermax, LMW, Subros

Source: Bloomberg, Angel Research

Global economic events release calendar

Country Event Description

Consumer Price Index (YoY)

Industrial Production (YoY)

BOE Announces rates

May 10, 2013

Initial Jobless claims

Industrial Production YoY

May 13, 2013

Industrial Production (YoY)

May 14, 2013

Monthly Wholesale Prices YoY%