Market Outlook: Dealer's Diary

Market Outlook
August 13, 2013
Dealers Diary
Indian markets are expected to open flat to positive tracking SGX Nifty and positive
start to most of the Asian markets.
The US markets ended on a mixed note as stocks showed a lack of direction
throughout the trading day on Monday. Uncertainty about the outlook for the
Federal Reserve's stimulus program also contributed to the choppy trading on Wall
Street. While recent comments from Fed officials have suggested that the central
bank could begin scaling back its asset purchases as early as its September
meeting, the slew of economic data due to be released in the coming days could
have a significant impact on the outlook for the program. The lackluster
performance also came amid a relatively quiet day in terms of corporate news, as
the earnings season is winding down.
Meanwhile, Indian markets rose for a second consecutive session on Monday,
helped by encouraging export data and amid expectations that the government will
announce a slew of measures to contain rupee depreciation and help narrow the
current account deficit. Going ahead, traders are likely to keep a close eye on US
retail sales data which is scheduled to release today.
Domestic Indices
Chg (%)
(Pts)
(Close)
BSE Sensex
0.8
Nifty
0.8
158 18,947
47
5,612
MID CAP
1.5
83
5,492
SMALL CAP
1.6
82
5,316
BSE HC
2.0
176
8,985
70
5,285
BSE PSU
1.3
BANKEX
(1.1)
(120) 11,084
0.7
74 10,290
AUTO
METAL
OIL & GAS
BSE IT
Global Indices
Dow Jones
4.5
310
7,166
(0.5)
(42)
8,302
0.6
45
7,513
Chg (%)
(Pts)
(Close)
(0.0)
(6) 15,420
Markets Today
NASDAQ
0.3
10
3,670
The trend deciding level for the day is 18,937/ 5,605 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 19,077 19,208 / 5,652 5,692 levels. However, if NIFTY trades below
18,937/ 5,605 levels for the first half-an-hour of trade then it may correct up to
18,806 18,666 / 5,565 5,518 levels.
FTSE
(0.1)
(9)
6,574
Nikkei
(0.7)
(96)
13,519
Indices
S2
S1
PIVOT
R1
R2
SENSEX
18,666
18,806
18,937
19,077
19,208
NIFTY
5,518
5,565
5,605
5,652
5,692
News Analysis
More steps to halt INR depreciation

IIP surprises negatively; CPI inflation moderates to 9.6% in July -13
Respite on trade deficit continues
JLR registers strong growth in retail volumes in July 2013
Sesa Goa- Sterlite Industries get Bombay High Court approval for merger
L&T has bagged various orders worth `4,160cr
Hindalcos subsidiary Novelis reports 1QFY2014 results
Result Review: ONGC, SBI, Tech Mahindra, DLF, Marico, Britannia,
Indraprastha Gas, JLL, India Cements, United Bank, Sarda Energy
Result Preview: M&M, Tata Steel, Hindalco, Sadbhav Engineering, IVRCL
Refer detailed news analysis on the following page
Net Inflows (August 8, 2013)

` cr
FII
MFs
Purch
2,887
838
Sales
3,226
569
Net
(339)
269
MTD
637
(370)
YTD
66,035
(14,716)
FII Derivatives (August 12, 2013)

` cr
Index Futures
Stock Futures
Purch
2,037
2,259
Sales
2,138
1,911
Net
(101)
348
Open Interest
11,213
26,976
Gainers / Losers
Company
Gainers
Price (`)
chg (%)
Muthoot Fin
Torrent Power
96
Company
20.0
MCX
83
20.0
Financial Tech
181
12.2
SBI
Jindal Steel
227
9.4
Tata Chemicals
Tata Steel
237
8.3
Tata Power
Aurobindo Phar
www.angelbroking.com
Losers
Price (`)
chg (%)
281
(5.0)
170
(4.5)
1,605
(3.4)
247
(3.4)
75
(3.3)
Hang Sang
2.1
Straits Times
0.1
3,232
Shanghai Com
2.4
49
2,101
Chg (%)
(Pts)
(Close)
0.0
0.0
$49.5
Indian ADR
INFY
464 22,271
WIT
1.4
0.1
$9.2
IBN
(0.9)
(0.3)
$31.2
HDB
(0.9)
(0.3)
$31.2
Advances / Declines
BSE
NSE
1,438
921
Declines
822
411
Unchanged
122
70
Advances
Volumes (` cr)
BSE
1,681
NSE
11,146
Market Outlook
August 13, 2013
More steps to halt INR depreciation

The Finance Minister has committed to reducing the current account deficit at
USD70bn or 3.7% of GDP for FY2014. In addition, to attract foreign inflows in the
economy the FM has announced that public sector financial institutions would be
allowed to raise quasi-sovereign bonds to finance long-term infrastructure needs.
Also, PSU oil companies would be allowed to raise funds through External
Commercial Borrowings (ECBs) and trade finance. PFC, IIFCL and IRFC are
expected to raise money to the tune of USD4bn through quasi sovereign bonds.
The RBI on its part has taken a number of steps to tackle liquidity and thereby
raised yields on the short end of the curve. This is expected to curb speculative
attack on the currency and attract FII investors to the debt market.
We believe that these new steps announced are likely to be sentimentally positive
for the INR. The current account deficit is likely to moderate on account of lower
gold imports and on account of the depreciation, import substitution of cheaper
manufactured goods from abroad may also ensue.
IIP surprises negatively, declines 2.2%

As per Quick Estimates on the Index of Industrial Production (IIP), industrial growth
in June 2013 declined by 2.2% in contrast with market expectations of 1.2% degrowth. The production data continues to reflect weakness on the demand-side
from investment as well as consumption. The index for May 2013 has been revised
downwards considerably by 120bp owing mainly to revision in manufacturing
production. Consequently, IIP growth for May 2013 has been revised to a decline
of 2.8% as compared to 1.6% de-growth reported earlier.
The IIP growth for
1QFY2014 has declined by a sharper 1.1% on the back of a 0.3% decline in the
corresponding period of FY2013 and 2.2% growth in 4QFY2013. We believe that
a sustainable recovery still looks far and expect a modest pick-up in growth in
2HFY2014.
Performance on Sector-wise classification

In terms of sector-wise classification, electricity production remained flat but
decline in production in mining and manufacturing sectors weighed on overall
output. The Mining sector continued to contract for the ninth consecutive month
and reported a 4.1% decline in June 2013 as against a 1.1% contraction in the
corresponding period of the previous year. The Manufacturing sector reported a
decline for the second straight month and came in at 2.2%.
Performance in the Use-based category

As per the use-based classification, Consumer Durables continued to weigh heavily
on the overall IIP. The decline of 2.3% in Consumer Goods production can be
attributed to the sharp 10.5% contraction in Consumer Durables. Growth in
consumer non-durables picked up to 5% as compared to 0.5% contraction in June
2013. The Capital Goods index posted a 6.6% decline despite a low base since it
had contracted by almost 28% in the corresponding period of the previous year.
Market Outlook
August 13, 2013
CPI inflation moderates to 9.6% in July 2013

In line with expectations of a further moderation in CPI inflation, the combined
(rural + urban) inflation for July 2013 moderated to 9.6% from 9.9% in June
2013. Inflation in food articles in the CPI (accounting for almost 50% weightage in
the index) has moderated as expected to 11% from 11.7% in the previous month.
Fuel inflation also decelerated to 8.4% during July 2013 as against 8.6% in the
previous month. Core (non-food, non-fuel) CPI inflation has also positively trended
down to 8.0% in as against a slightly higher 8.2% in the previous month. Going
ahead, we are positive on the trajectory for food inflation owing to the decent rabi
production, pick-up in sowing of kharif crops and reasonable MSP hikes
announced by the government for the kharif crops and this is likely to keep
headline CPI inflation in check.
Respite on trade deficit continues

Provisional data released by the commerce ministry shows that Indias trade deficit
for July 2013 narrowed to USD12.3bn as compared to USD17.5bn in July 2012
and at similar level of USD12.2bn in the previous month. Exports witnessed a
sharp recovery by reporting 11.6% growth, the highest level in 18 months, on the
back of a 6.1% decline in July 2012. We believe that the sharp INR depreciation
and low base support improvement in export growth going ahead as the external
demand scenario also improves.
Imports reported 6.2% yoy decline during the month as compared to 0.4% degrowth in June 2013 owing to compression in both oil and non-oil imports. Gold
imports soared in the month of April and May of 2013 coming in at an average of
USD 7.3bn in each of the 2 months but as expected gold imports moderated
during June 2013 to less than USD 2bn.
The trade deficit for April July of 2013-14 is estimated at USD 62.4bn, higher
than the deficit of USD 59.6bn during April July of 2012-13.
Trade deficit for July 2013

Trade balance
Exports
Imports
Growth
Export
Import
Non oil
Oil
Jul-13
Jun-13
May-13
Apr-13
Mar-13
Feb-13
(12.3)
25.8
38.1
(12.2)
23.8
36.0
(20.1)
24.5
44.6
(18.3)
23.7
41.9
(9.8)
30.7
40.5
(15.5)
25.8
41.3
11.6
(6.2)
(5.3)
(4.6)
(0.4)
(6.7)
(1.1)
7.0
9.1
(0.5)
11.0
14.7
6.6
(4.3)
2.8
2.3
2.8
(3.4)
(8.0)
13.7
3.0
4.3
(16.1)
15.7
Market Outlook
August 13, 2013
L&T has bagged various orders worth `4,160cr

Larsen & Toubro has bagged various orders worth `2,319cr from reputed clients
across the country in the Building & Factories segment. This includes a major order
for construction of residential towers in Delhi and Chennai. In the power
Transmission and Distribution segment the company has bagged various orders
worth `974cr which includes major turnkey order from Madhyanchal Vidyut Vitran
Nigam ltd for various rural electrification works under Rajiv Gandhi Grameen
Vidyutikaran Yojna (RGGVY) phase-II in Barabanki and Lakhimpur District. Also,
the company has bagged various orders worth `735cr in the water and renewable
energy business. A major order has been received from Public Health Engineering
Department, Rajasthan for regional water supply schemes. The scope includes
turnkey construction of water supply network for 256 villages and five towns under
the Ratangarh-Sujangarh water supply project. We continue to maintain Buy rating
on the stock with a target price of `1,002.
JLR registers strong growth in retail volumes in July 2013

Jaguar and Land Rover (JLR) registered a strong retail volume growth of 25.3% yoy
to 31,611 units in July 2013, which was ahead of our expectations, driven by the
strong performance of the newly launched models. The volume growth ex. Evoque
too remained robust (up 25.3% yoy) and was driven by the Jaguar and Discover
and Freelander models. Overall volume growth however, was impacted due to the
30.2% yoy decline in Range Rover Sport model ahead of the introduction of the all
new model. Geographically, the volume momentum was strong across the world
(except Europe) with Asia Pacific, China, North America and Rest of the World
witnessing a strong growth of 42.7%, 36.3%, 31.1% and 29.1% yoy respectively.
Jaguar sales continued its strong momentum posting an impressive growth of
65.3% yoy driven by the growth in the F-type and XF models (on the back of the
introduction of the Sportbrake, AWD and smaller engine variants).
Geographically, Jaguar posted a robust growth in all the major markets with
China (up 221% yoy), North America (up 63% yoy) and Asia Pacific (up 32% yoy)
being the top three performers during the month.
Land Rover sales too recorded a strong growth of 14.2% yoy led by continued
momentum in Freelander and Discover models which registered a growth of
36.9% and 18.5% yoy respectively. Geographically, Asia Pacific, North America
and China were the top three performers and posted a growth of 46%, 21% and
20% yoy respectively. Sales in Europe however, declined 5% yoy due to the
phasing out of Range Rover Sport.
We expect headwinds in the standalone business to continue in FY2014 due to
weak macro-economic environment which is expected to continue impacting
domestic volumes. Nevertheless, we expect JLR to sustain its strong performance
driven by continued momentum in the global luxury vehicle market and aided
further by the strong product launch pipeline and the success of the model
launched in 4QFY2013. We expect JLR volumes to grow at ~13% CAGR during
FY2013-15E and PAT to grow at ~15% CAGR during the same period. We retain
our positive view and Buy rating on the stock with an SOTP based target price
of `355.
Market Outlook
August 13, 2013
Sesa Goa- Sterlite Industries get Bombay High Court approval

for merger
The division bench of High Court of Bombay at Goa has dismissed a shareholders
appeal which was opposing the proposed Sesa Goa- Sterlite Industries merger.
The promoters, Vedanta Resources, had proposed the merger during January
2012 after which it had gradually received most approvals required to merge Sesa
Goa with Sterlite Industries to form the merged entity, Sesa Sterlite. With this court
approval we now believe both the companies have completed major formalities
required for the merger. We now await a specific timeline for the proposed
merger. Meanwhile, we maintain our Buy ratings on the stocks of Sesa Goa and
Sterlite Industries with target prices of `149 and `87, respectively.
Hindalcos subsidiary Novelis reports 1QFY2014 results

Hindalcos subsidiary Novelis reported its weak 1QFY2014 results. The companys
top-line declined by 5.6% yoy to US$2,408mn on account of decrease in sales
volumes coupled with lower aluminium prices and lower conversion premiums.
The aluminium shipments in 1QFY2014 declined 2.0% yoy to 708kt. The EBITDA
also declined 26.1% yoy at US$173mn and therefore the company reported a PAT
decline of 84.6% yoy to US$14mn. We maintain our Neutral view on Hindalco.
Result Review
ONGC (CMP: `278/ TP: Under Review/ Upside :-)
ONGCs 1QFY2014 net profit was below our and street expectations on account
of higher than expected subsidy. Its net sales decreased 4.3% yoy to `19,218cr on
account of higher subsidy burden in our view. The company shared a subsidy
burden of `12,622cr in 1QFY2014, compared to `12,346cr in 1QFY2013 and
`12,312cr in 4QFY2013. Its EBITDA declined 23.7% yoy to `8,488cr due to lower
realizations. Depreciation expense increased by 22.0% yoy to `3,901cr; hence, its
net profit declined 33.9% yoy to `4,016cr (below our estimate of `5,532cr). We
maintain a Buy on the stock while we keep our target price under review.
Y/E
Sales OPM
March
(` cr)
(%)
PAT
(` cr)
EPS ROE P/E P/BV

(`)
(%)
EV/EBITDA
EV/Sales
(x)
(x)
(x)
(x)
FY2014E
169,963 35.3
28,582 33.4 17.7 8.3
1.4
3.5
1.1
FY2015E
196,050 36.6
33,087 38.7 18.2 7.2
1.2
2.6
0.8
SBI (CMP: `1,605/ TP: -/ Upside: -)

SBI reported poor operating performance for the quarter, primarily dragged by
asset quality challenges. NII for the bank grew by 3.5% yoy to `11,512cr
(vs. advance growth of 15.6%, as NIMs declined 41bp yoy to 3.2%). In-line with
sectoral trends, Non-interest income for the bank grew by 28.1% yoy to `4,474cr,
largely aided by treasury gains of `1,201 as compared to `221cr in 1QFY2013.
Overall, pre-provisioning profit for the bank de-grew by 7.6% yoy to `7,551cr.
On the asset quality front, the bank reported disappointed set of numbers, as
slippages surged to 5.3% (annualized slippage rate of 2.7% in previous quarter),
Market Outlook
August 13, 2013
while recoveries and upgrades came in lower sequentially. Hence, Gross NPA
levels increased sequentially by 19.0%, while Net NPA levels increased by much
higher 36.6% qoq (amongst the worst within our coverage banks). Provisioning
expenses increased by 16.7% yoy to `2,866cr. Thus, bottom-line de-grew by
13.6% yoy to `3,241cr. Considering recent macro developments in an overall
weak economic environment, we remain cautious on asset quality pressures for the
sector. At CMP, the stock trades at a valuation of 0.9x FY2015E P/ABV. We would
recommend a Neutral rating on the stock.
Y/E
PAT
EPS
ABV
ROA
(` cr)
(`)
(%)
(x)
FY2014E
66,417 3.0 15,558
227.4
1,567.0
FY2015E
76,734 3.0 19,484
284.8
1,799.1
March
Op. Inc NIM

(` cr)
(%)
ROE P/E
(x)
P/ABV
(x)
(x)
0.9
15.4 7.1
1.0
1.0
17.0 5.6
0.9
Tech Mahindra (CMP: `1,266/ TP: Under Review)

Tech Mahindra announced its 1QFY2014 results which came in above our
expectations on all broader fronts. The dollar revenues (including Mahindra
Satyam) grew by 3.8% qoq to US$724mn (2.8% organic, excluding Complex IT).
In INR terms, revenues came in at `4,103cr, up 6.8% qoq. The EBITDA margin of
came in at 21.1%, up ~110bp qoq and ahead of our expectations of 20.9%.
Margins were aided by 130bp qoq of favorable currency impact, partially offset by
80bp of negative impact from higher expenses (especially visa related).
Management indicated that the company should be able to sustain current margin
levels after absorbing the impact of wage hikes. Adjusted net profit came in at
`686cr, up 36% qoq helped by higher non-operating income from forex gains.
Tech Mahindra also proposed to increase the FII limit from current 35% to 45% of
paid-in capital, which may make it eligible for inclusion in MSCI Global Standard
Index, following Satyams removal in July.
During the quarter, Tech Mahindra won three large deals in the ERP space, with
TCV of ~US$50-60mn each. Management expects non-BT telecom business to
grow in line with company average and above Telecom sector average, while BT
revenues are expected to remain modest, clocking about 52mn per quarter in the
near term. Management indicated that the company is witnessing pick up in
discretionary spending and a strong deal pipeline in IMS, where Tech Mahindra is
actively gaining market share through renewal deal wins. We continue to remain
positive on Tech Mahindra; the target price is currently under review.
Y/E
Sales OPM
March
(` cr)
(%)
PAT
EPS
(` cr)
(`)
ROE P/E P/BV

(%)
(x)
(x)
EV/EBITDA
EV/Sales
(x)
(x)
FY2014E
8,373
20.8
1,484
111.5 21.811.3
2.5
9.4
2.0
FY2015E
9,020
20.4
1,625
122.2 19.510.4
2.0
8.5
1.7
Note: Numbers exclude Mahindra Satyam financials
DLF (CMP: `139/ TP: under review)

For 1QFY2014, DLF reported good set of numbers which were above consensus
estimate, both on revenue and profitability front. On the top-line front, DLFs
revenue grew by 4.0% yoy to `2,314cr in 1QFY2014; which was above consensus
estimate of `2,063cr. EBIDTAM came in at 39.6% in 1QFY2014 which was above
Market Outlook
August 13, 2013
street estimate of 37.0%. On the back of higher sales, some projects attaining
revenue recognition threshold and new launches during the quarter company
reported a PAT of `181cr (against consensus estimate of `118cr) in 1QFY2014,
indicating a decline of 38.1% yoy. During the quarter, the company has completed
one of the largest institutional private placement (IPP) having raised `1,863cr.The
stock rating is currently under review. We will come out with a detailed note a
conference call with the management.
Y/E
Sales
OPM
March
(` cr)
(%)
FY2014E
8,293
FY2015E
9,622
PAT EPS ROE
P/E
P/BV
EV/EBITDA
EV/Sales
(`)
(%)
(x)
(x)
(x)
(x)
36.5
969 5.7
3.7
24.3
0.9
14.0
5.1
36.1
1,144 6.7
4.1
20.6
0.8
11.7
4.2
(` cr)
Marico (CMP: `202/ TP: -/ Upside: -)

For 1QFY2014 Maricos results were better than our estimates. The companys
consolidated top-line rose by 8.9% to `1,380cr, aided by volume growth of 10%.
Domestic and International FMCG business posted volume growth of 10% and 9%
respectively. OPM rose by 187bp yoy to 16.5%, aided by higher gross margins
and lower other expenses as a % of sales. Bottom-line rose by 25.4% yoy to
`157cr. We maintain a Neutral rating on the stock
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2014E
5,273
14.8
468
7.3
21.4
27.9
5.4
17.2
2.6
FY2015E
6,044
14.9
559
8.7
21.0
23.3
4.5
14.9
2.2
Britannia Industries (CMP: `732/ TP: -/ Upside: -)

For 1QFY2014, Britannia Industries (Britannia) stand-alone top-line rose by
14.9% to `1,403cr yoy driven by superior product mix and higher price
realizations. OPM rose by 299bp on a yoy basis to 8.3% on account of superior
mix, better realization and efficient cost management. Bottom-line rose by 98.8%
yoy to `86cr. We maintain a neutral rating on the stock.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2014E
6,417
6.1
254 21.3
35.7
34.4
11.2
22.0
1.3
FY2015E
7,502
6.2
304 25.5
34.6
28.7
9.0
18.3
1.1
Indraprastha Gas (CMP: `268 / TP: -/ Upside: -)

Indraprastha Gas reported its 1QFY2014 results. Its net sales grew by 18.7% yoy
to `903cr. The company's EBITDA grew by 8.2% yoy to `194cr due to higher net
sales. The cost of gas sold also increased by 21.6% yoy to `596cr due to greater
mix of high cost RLNG. Depreciation grew by 24.4% yoy to `53cr and tax rate also
grew to 33.5% in 1QFY2014 compared to 31.9% in 1QFY2013 which led to net
profit growing by only 3.6% yoy to `88cr. We maintain our Neutral view on IGL
due to the regulatory overhang on the stock.
Market Outlook
August 13, 2013
Y/E
March
FY2014E
FY2015E
Sales
(` cr)
OPM
(%)
PAT
(` cr)
EPS
(`)
ROE
(%)
P/E
(x)
P/BV
(x)
EV/EBITDA
(x)
EV/Sales
(x)
3,656
4,456
21.5
18.6
355
371
25.4
26.5
21.8
19.4
10.6
10.1
2.1
1.8
4.9
4.5
1.0
0.8
Jyothy Laboratories (CMP: `168/ TP: `199/ Upside: 18%)

Jyothy Laboratories (JLL) reported strong set of numbers for 1QFY2014. The topline grew by 13.4% yoy to `319cr mainly led by the soaps and detergent segment
which witnessed a growth of 16.5% on yoy basis. The revenue from home care
segment remained flat on yoy basis at `58cr, mainly due slowdown in Maxo. The
gross margin improved by 689bp on account of better realization and sales mix
leading to an expansion of 369bp in operating margin on yoy basis at 15.2%. The
depreciation for the quarter stood at `15cr which included amortization of
goodwill. Further, there was no tax reported in 1QFY2014 because after the
amalgamation, as the company has got a tax shield due to the carry forward
losses of JCPL. Consequently, the company reported a profit of `29cr, registering
a robust growth of 103.5% on yoy basis.
Given the successful amalgamation and restructuring, we remain positive on the
company from a long term perspective. At the CMP of `168, the stock is trading at
a PE of 16.9x for FY2015E. We maintain our Buy recommendation on the stock
with a target price of `199 based on a target PE of 20.0x for FY2015E.
Y/E
Sales OPM
March
(` cr)
(%)
(` cr)
PAT
FY2014E
1,244
14.1
98
FY2015E
1,523
14.2
EPS ROE P/E P/BV
EV/EBITDA
EV/Sales
(x)
(x)
(x)
(x)
5.9 12.7 28.4
3.4
18.5
2.6
165 10.0 18.8 16.9
3.0
14.3
2.0
(`)
(%)
India Cement (CMP: `44/ TP: -/ Upside: -)

India Cements posted weak set of numbers for 1QFY2014. Net sales rose by 3.1%
yoy to `1,238cr. Cement sale volumes rose by a healthy 13.5% yoy to 2.65mn
tonnes, with the company increasing its sales in Maharashtra and Eastern India.
However, Net Plant Realization fell by 10% yoy to `3,185/tonne. While IPL posted
a revenue of `108cr, Shipping and Wind businesses posted revenue of 15cr and
`5cr respectively. The companys OPM plunged by 769bp yoy largely on account
of lower cement realization. IPL business posted an EBITDA of `33cr during the
quarter, while EBITDA of shipping business stood at `1cr. Bottom-line fell by 73%
yoy to `17cr. We maintain our neutral rating on the stock.
Y/E
March
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA EV/tonne*
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(US $)
FY2014E
4,796
16.4
225
7.3
6.4
6.0
0.4
5.2
44
FY2015E
5,357
16.1
292
9.5
8.0
4.7
0.4
4.7
Market Outlook
August 13, 2013
United Bank- (CMP: `35 / TP: - / Upside: -)

United Bank reported weak operating performance for the quarter, primarily
dragged by asset quality challenges. NII expectedly de-grew by 14.1% yoy to
`587cr. Non-interest income grew strongly by 88.2% yoy to `405cr, probably
boosted by treasury gains, thereby aiding moderate operating profit growth of
9.9% yoy to `600cr. On the asset quality front, the bank witnessed significant asset
quality deterioration during the quarter, as Gross and Net NPA levels increased
sequentially by 35% and 37%, respectively. Consequently, provisioning expenses
for the bank grew by 73.3% yoy to `506cr, and earnings de-grew by 74.3% yoy to
`45cr. We remain cautious on the asset quality performance for the banking sector
going ahead, as we take into account recent macro developments and overall
weak macro environment. Hence, we recommend a 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
3,386
2.3
545
12.4 117.1
0.5
10.0
2.9
0.3
FY2015E
3,884
2.5
830
20.0 135.4
0.6
14.7
1.8
0.3
March
Sarda Energy and Minerals (CMP: `85, TP: `98, Upside: 15%)
Sarda Energy and Minerals (SEML) reported its 1QFY2014 numbers. The net sales
declined by 8.8% yoy to `307cr mainly due to decline in billet sales volumes (down
60.9% yoy to 2,591 tonnes). The EBITDA declined 4.5% yoy to `55cr in line with
decrease in net sales. The other income however increased by 205.7% yoy to
`21cr which led to net profit growing by 48.1% yoy to `30cr. We maintain our Buy
rating on the stock with a revised target price of `98.
Y/E
March
Sales
OPM
PAT EPS
(` cr)
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
(` cr)
(%)
(`)
(%)
(x)
(x)
(x)
(x)
FY2014E
1,323
17.2
91 25.3
9.5
3.4
0.3
3.4
0.6
FY2015E
1,398
17.9
99 27.7
9.5
3.1
0.3
2.8
0.5
Result Preview
Mahindra and Mahindra (CMP: `860/ TP: `1,103/ Upside: 28%)
Mahindra and Mahindra (MM) will be announcing its 1QFY2014 results today. We
expect the companys top-line to register a strong growth of ~13% yoy (flat qoq) to
`10,563cr driven by ~6% yoy growth in volumes and ~3% yoy growth in net
average realization. The volume growth was driven by better-than-expected growth
of 25.2% yoy (50.2% qoq) in tractor sales even though the automotive segment
registered a decline of 2.4% yoy (17.6% qoq). The momentum in the automotive
segment has slowed down considerably in 1QFY2014 due to weak consumer
demand and also due to increasing competition in the utility vehicle segment. On
the operating front, we expect EBITDA margins to expand ~70bp yoy (~40bp
qoq) to 12.5% driven by easing of commodity prices and also on account of better
product-mix (higher share of tractors in product-mix) and price hikes undertaken in
4QFY2013. Consequently, bottom-line is expected to increase 17.1% yoy (6.4%
qoq) to `850cr. At `860, the stock is trading at 12.1x FY2015E earnings.
Currently, we have a Buy rating on the stock with an SOTP based target price of
`1,103.
Market Outlook
August 13, 2013
Y/E
March
Sales
OPM
PAT
(%)
(` cr)
EPS
ROE
P/E P/BV
EV/EBITDA
EV/Sales
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2014E
44,761
11.9 3,738
63.3
23.2
13.6
2.9
7.2
0.8
FY2015E
50,572
11.9 4,185
70.9
21.8
12.1
2.4
5.9
0.7
Tata Steel (CMP: `237, TP: `260, Upside: 10%)

Tata Steel is expected to report its consolidated 1QFY2014 results today. We
expect the company to post a net sales decline of 3.2% yoy to `32,728cr mainly
on account of weak operational performance from European operations. EBITDA
margin is expected to decline by 111bp yoy to 8.9%. The net profit is also expected
to decrease by 18.5% yoy to `487cr. We maintain our Accumulate rating on the
stock with a target price of `260.
Y/E
Sales OPM
March
(` cr)
(%)
FY2014E
140,917
9.7
FY2015E
151,537 10.8
PAT
EPS ROE
EV/EBITDA
EV/Sales
(x)
(x)
(x)
(x)
1,918 19.7
5.5 12.0
0.6
6.9
0.7
3,101 31.9
8.3
0.6
7.0
0.8
(` cr)
(`)
(%)
P/E P/BV
7.4
Hindalco (CMP: `94/ TP:-/ Upside :-)

Hindalco is slated to report its 1QFY2014 results today. We expect standalone net
sales to increase by 14.2% yoy to `6,810cr. EBITDA margin is also expected to
expand by 50bp yoy to 8.3% on account of better profitability from copper
segment. However, Net profit is expected to decrease by 22.7% yoy to `328cr. We
maintain our Neutral view on the stock.
Y/E
March
Sales
OPM
PAT
EPS
ROE
P/E
P/BVEV/EBITDA
EV/Sales
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2014E
90,717
8.7
2,513
13.1
7.2
7.2
0.5
6.3
0.5
FY2015E
95,092
9.1
2,821
14.7
7.5
6.4
0.5
5.6
0.5
Sadbhav Engineering (CMP: `69 / TP: `100 / Upside: 45%)

We expect Sadbhav Engineering (SEL) to post good numbers for the quarter on the
top-line front, mainly on account of pick up in execution and a low base of
1QFY2013. The company is expected to post revenue of `591cr, a growth of
40.2% yoy. The EBITDA margin is expected to witness a jump of 133bp yoy to
10.6%, mainly due to pick-up in execution. On the earnings front, the company is
expected to post a dip of 56.5% yoy to `23cr. We maintain a Buy on the stock with
a Target Price of `100.
Y/E
Sales OPM
March
(` cr)
FY2014E
2,462
FY2015E
2,731
PAT EPS
(%) (` cr)
ROE
P/E P/BV EV/EBITDA EV/Sales
(`)
(%)
(x)
(x)
(x)
(x)
10.6
89 5.9
10.2
11.8
1.1
3.1
0.3
10.6
101 6.7
10.5
10.4
1.0
3.0
0.3
Market Outlook
August 13, 2013
IVRCL (CMP: `11 / TP: -/ Upside: -)

We expect IVRCL to continue with its poor performance for the quarter. On the
revenue front, it is expected to post a modest growth of 3.4% yoy to `1,249cr on
the back of slowdown in execution. We expect the EBITDA margin to contract by
208bp yoy to 8.2%. The company is expected to post a bottom-line loss of `3cr vs
a loss of `6cr in 5QFY2012, primarily on account of slowdown in execution and
higher interest costs for the quarter. We maintain a Neutral rating on the stock.
Y/E
Sales OPM
March
(` cr)
(%) (` cr)
PAT EPS
FY2014E
5,673
FY2015E
5,892
ROE
P/E P/BV EV/EBITDA EV/Sales
(`)
(%)
(x)
(x)
(x)
(x)
8.1
44 1.4
2.0
7.8
0.2
6.1
0.5
8.4
56 1.8
2.6
6.1
0.2
5.9
0.5
Quarterly Bloomberg Consensus Estimate

BPCL (13/08/2013)
Particulars (` cr)
Net sales
EBITDA
EBITDA margin (%)
Net profit
1QFY14E
1QFY13
y-o-y (%)
4QFY13
q-o-q (%)
58,301
54,523
6.9
66,282
(12.0)
(832)
(8,150)
(89.8)
6,581
(112.6)
(98.3)
4,797
(130.9)
(1.4)
(14.9)
(1,484)
(88,374)
9.9
GMR Infra Consolidated (13/08/2013)

Particulars (` cr)
1QFY14E
1QFY13
y-o-y (%)
4QFY13
q-o-q (%)
2,324
2,534
(8.3)
2,571
(9.6)
EBITDA
723
597
21.1
761
(5.0)
EBITDA margin (%)
31.1
23.6
Net profit
(162)
(94)
72.3
579
(128.0)
1QFY14E
1QFY13
y-o-y (%)
4QFY13
q-o-q (%)
111,000
96,603
14.9
128,400
(13.6)
(3,605)
(19,942)
(81.9)
16,752
(121.5)
(3)
(21)
(5,325)
(22,451)
Net sales
29.6
Indian Oil Corp (13/08/2013)

Particulars (` cr)
Net sales
EBITDA
EBITDA margin (%)
Net profit
13.0
(76.3)
14,513
(136.7)
Mahindra & Mahindra (13/08/2013)

Particulars (` cr)
1QFY14E
1QFY13
y-o-y (%)
4QFY13
q-o-q (%)
10,314
9,248
11.5
10,353
(0.4)
1,340
1,109
20.8
1,270
5.5
EBITDA margin (%)
13.0
12.0
Net profit
861
726
Net sales
EBITDA
12.3
18.6
889
(3.1)
Market Outlook
August 13, 2013
Hindalco Industries (13/08/2013)

Particulars (` cr)
1QFY14E
1QFY13
y-o-y (%)
4QFY13
q-o-q (%)
6,032
5,964
1.1
6,916
(12.8)
EBITDA
487
463
5.2
643
(24.3)
EBITDA margin (%)
8.1
7.8
Net profit
322
425
Net sales
9.3
(24.2)
482
(33.2)
q-o-q (%)
Tata Steel Consolidated (13/08/2013)

Particulars (` cr)
1QFY14E
1QFY13
y-o-y (%)
4QFY13
32,488
33,548
(3.2)
34,180
(5.0)
3,104
3,403
(8.8)
4,369
(29.0)
EBITDA margin (%)
9.6
10.1
Net profit
378
598
(36.8)
(6,529)
(105.8)
1QFY14E
1QFY13
y-o-y (%)
4QFY13
q-o-q (%)
22,681
19,993
13.4
23,534
(3.6)
EBITDA
986
360
173.9
1,322
(25.4)
EBITDA margin (%)
4.3
1.8
Net profit
(56)
(1,400)
(96.0)
200
(128.0)
1QFY14E
1QFY13
y-o-y (%)
4QFY13
q-o-q (%)
Net sales
244
198
23.2
140
74.3
EBITDA
140
290
(51.7)
262
(46.6)
EBITDA margin (%)
57.4
146.5
86
105
(18.1)
(280)
(130.7)
1QFY14E
1QFY13
y-o-y (%)
4QFY13
q-o-q (%)
294
228
28.9
316
(7.0)
1QFY14E
1QFY13
y-o-y (%)
4QFY13
q-o-q (%)
10,745
10,641
1.0
12,163
(11.7)
EBITDA
911
1,515
(39.9)
894
1.9
EBITDA margin (%)
8.5
14.2
Net profit
339
696
Net sales
EBITDA
12.8
Essar Oil (14/08/2013)

Particulars (` cr)
Net sales
5.6
HDIL Consolidated (14/08/2013)

Particulars (` cr)
Net profit
187.1
LIC Housing Finance (14/08/2013)

Particulars (` cr)
Net profit
SAIL (14/08/2013)
Particulars (` cr)
Net sales
7.4
(51.3)
447
(24.2)
Market Outlook
August 13, 2013
Economic and Political News
Government to increase import duty on gold, luxury goods

CAD to touch 3 year low of 3.7% of GDP in FY2014:Chidambaram
35 more districts come under direct transfer of LPG subsidy
Corporate News
Shriram Properties to bid for Britannia's factory land in Chennai

Mahindra to open auto assembly plant in Ghana
Wockhardt may see some relief from USFDA
Jet Airways to add six Boeing 737s to its fleet in FY14
Muthoot Finance files draft paper with SEBI to raise NCDs totaling to `300cr
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
Market Outlook
August 13, 2013
Result Calendar
Date
Company
August 13, 2013
IOC, M&M, Tata Steel, Hindalco, BPCL, GMR Infra., GSPL, Sadbhav Engg., IVRCL Infra, Cravatex
SAIL, Nalco, LIC Housing Fin., Essar Oil, Bhushan Steel, HDIL, Monnet Ispat, Amara Raja Batteries, Anant Raj, Orchid
Chemicals, Simplex Infra, Electrosteel Castings, Patel Engg., Madhucon Proj, JK Tyre, Abbott India
Mphasis
August 14, 2013

August 29, 2013
Source: Bloomberg, Angel Research
Global economic events release calendar

Date
Time
Country Event Description
Unit
Period
Bloomberg Data
Last Reported Estimated
August 13, 2013
2:00PM
UK
CPI (YoY)
% Change
Jul
2.90
2.80
August 14, 2013
2:00PM
UK
Jobless claims change
% Change
Jul
(21.20)
(15.00)
11:30AM
Germany GDP nsa (YoY)
% Change
2Q P
(1.40)
0.70
12:00PM
India
% Change
Jul
4.86
5.00
2:30PM
Euro Zone Euro-Zone GDP s.a. (QoQ)
% Change
2Q A
(0.30)
0.20
6:00PM
US
Producer Price Index (mom)
% Change
Jul
0.80
0.30
6:00PM
US
Initial Jobless claims
Thousands
Aug 10
333.00
335.00
6:00PM
US
Consumer price index (mom)
% Change
Jul
0.50
0.20
6:45PM
US
Industrial Production
Jul
0.31
0.30
6:00PM
US
Housing Starts
Thousands
Jul
836.00
905.00
6:00PM
US
Building permits
Thousands
Jul
918.00
948.00
August 15, 2013
August 16, 2013
Monthly Wholesale Prices YoY%
2:30PM
Euro Zone Euro-Zone CPI (YoY)
August 21, 2013
7:30PM
US
Jul F
1.60
1.60
Million
Jul
5.08
5.13
August 22, 2013
1:00PM
1:00PM
Germany PMI Services
Value
Aug A
51.30
--
Germany PMI Manufacturing
Value
Aug A
50.70
--
7:30PM
Euro Zone Euro-Zone Consumer Confidence
Value
Aug A
(17.40)
--
7:30PM
US
New home sales
Thousands
Jul
497.00
490.00
2:00PM
UK
GDP (YoY)
% Change
2Q P
1.40
--
August 27, 2013
7:30PM
US
Consumer Confidence
S.A./ 1985=100
Aug
80.30
--
August 29, 2013
6:00PM
US
GDP Qoq (Annualised)
% Change
2Q S
1.70
--
1:25PM
Germany Unemployment change (000's)
Thousands
Aug
(7.00)
--
August 30, 2013
5:30PM
India
Qtrly GDP YoY%
% Change
2Q
4.80
--
September 1, 2013
6:30AM
China
PMI Manufacturing
Value
Aug
50.30
--
September 2, 2013
2:00PM
UK
PMI Manufacturing
Value
Aug
54.60
--
September 5, 2013
4:30PM
UK
BOE Announces rates
% Ratio
Sep 5
0.50
0.50
5:15PM
Euro Zone ECB announces interest rates
Sep 5
0.50
--
2:00PM
UK
Industrial Production (YoY)
% Change
Jul
1.20
--
6:00PM
US
Change in Nonfarm payrolls
Thousands
Aug
162.00
--
6:00PM
US
Unnemployment rate
Aug
7.40
--
August 23, 2013
September 6, 2013
Existing home sales
Market Outlook
August 13, 2013
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
10.0
11.4
6.0
4.0
2.0
(1.0) (0.6)
(0.7)
(4.0)
Mfg. PMI
60.0
7.3
7.2
Apr-13
Exhibit 4: Manufacturing and services PMI
(%)
8.1
(2.2)
Source: MOSPI, Angel Research
Exhibit 3: Monthly WPI inflation trends

8.0
May-13
(2.8)
Jun-13
(0.1)
Jul-12
4QFY13
3QFY13
2QFY13
1QFY13
4QFY12
3QFY12
2QFY12
1QFY12
4QFY11
3QFY11
2QFY11
1QFY11
4QFY10
3QFY10
Source: CSO, Angel Research
7.3
7.3
Services PMI
58.0
7.3
56.0
5.7
4.8
5.0
4.7
4.9
54.0
52.0
4.0
3.0
2.0
1.0
0.0
50.0
Source: MOSPI, Angel Research
(%)
Jul-13
Jun-13
May-13
Apr-13
Mar-13
Feb-13
Jan-13
Dec-12
Oct-12
Nov-12
Sep-12
Aug-12
Jul-12
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Exhibit 5: Exports and imports growth trends

Exports yoy growth
15.0
46.0
Jun-12
Jun-13
May-13
Apr-13
Mar-13
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
48.0
May-12
9.0
8.0
7.0
6.0
(2.0)
Mar-13
4.7 4.8
1.9
0.6
Jan-13
5.1 5.4 5.2
Dec-12
6.0
3.5
2.5
2.0
Nov-12
6.5
Feb-13
7.5
Oct-12
9.2
7.7
Sep-12
8.6
8.4
8.0
9.9
Aug-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
Exhibit 6: Key policy rates

Repo rate
(%)
9.00
Imports yoy growth
Reverse Repo rate
CRR
8.00
7.00
6.00
5.00
Source: RBI, Angel Research
Aug-13
Jul-13
Jun-13
Jun-13
May-13
Apr-13
Apr-13
Mar-13
Feb-13
Feb-13
Jan-13
Dec-12
Dec-12
Nov-12
Oct-12
Oct-12
3.00
Sep-12
Jul-13
Jun-13
May-13
Apr-13
Mar-13
Feb-13
4.00
Aug-12
(15.0)
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
0.0
Market Outlook
August 13, 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
143
2,776
1,674
1,923
13.7
13.7
6.8
7.6
21.0
18.8
3.9
3.5
20.0
19.6
1.8
1.6
United Phosphorus
Buy
144
225
6,374
10,091
11,302
16.5
16.5
19.2
22.5
7.5
6.4
1.2
1.0
17.0
17.2
0.8
0.6
Amara Raja Batteries
Accumulate
257
285
4,387
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
63
3,170
13,409
15,106
11.8
11.6
13.1
15.4
4.8
4.1
0.8
0.7
17.9
17.8
0.4
0.3
Ashok Leyland
Buy
13
18
3,565
13,450
15,853
6.5
8.5
0.4
1.9
35.0
7.2
1.2
1.1
2.3
11.0
0.4
0.3
Automotive Axle#
Neutral
197
298
834
965
9.3
10.6
17.3
27.1
11.4
7.3
1.1
1.0
9.5
14.0
0.4
0.4
Bajaj Auto
Buy
1,807
2,102
52,287
21,696
25,239
19.2
19.3
119.3
140.2
15.2
12.9
5.3
4.2
38.9
36.6
2.0
1.6
Bharat Forge
Neutral
229
5,332
6,198
6,793
14.6
14.9
14.5
17.3
15.8
13.2
2.1
1.8
13.6
14.7
1.0
0.9
Bosch India*
Accumulate
8,483
9,096
26,636
9,301
10,895
16.8
18.0
339.9
423.1
25.0
20.1
4.2
3.5
16.6
17.6
2.5
2.1
CEAT
Buy
117
170
400
5,159
5,628
9.3
9.0
43.5
48.6
2.7
2.4
0.5
0.4
18.4
17.5
0.2
0.2
Exide Industries
Buy
126
148
10,723
6,899
7,873
14.7
14.7
7.9
9.0
15.9
14.0
2.7
2.4
18.3
18.0
1.2
1.1
FAG Bearings*
Neutral
1,135
1,886
1,336
1,572
13.8
16.0
75.6
102.4
15.0
11.1
1.9
1.6
13.4
15.8
1.2
1.0
Hero Motocorp
Accumulate
1,905
2,048
38,041
25,562
28,297
14.5
14.4
111.2
146.3
17.1
13.0
6.3
4.9
40.1
42.1
1.3
1.1
JK Tyre
Buy
92
154
377
7,972
8,754
7.1
7.1
37.5
44.0
2.4
2.1
0.4
0.3
16.4
16.6
0.3
0.3
Auto & Auto Ancillary
Mahindra and Mahindra Buy
860
1,103
52,976
45,254
51,197
11.4
11.7
61.2
70.2
14.1
12.3
2.9
2.5
22.7
21.9
0.9
0.8
1,379
1,648
41,652
45,862
52,647
11.2
11.1
94.6
109.9
14.6
12.6
2.0
1.7
14.4
14.6
0.7
0.6
Accumulate
225
242
13,239
28,442
31,914
8.4
8.7
13.0
16.1
17.4
14.0
4.6
3.6
29.4
28.6
0.6
0.5
Subros
Accumulate
20
23
119
1,230
1,398
10.5
10.5
2.3
3.8
8.5
5.2
0.4
0.4
4.8
7.6
0.3
0.3
Tata Motors
Buy
281
355
75,704 215,043 240,077
13.5
13.7
38.7
44.1
7.3
6.4
1.8
1.4
28.5
25.1
0.4
0.4
TVS Motor
Accumulate
32
36
1,535
7,659
8,528
6.0
6.2
4.9
5.9
6.6
5.4
1.1
1.0
17.8
19.0
0.1
0.1
Maruti
Buy
Motherson Sumi
Capital Goods
ABB*
Reduce
497
461
10,534
8,073
9,052
5.5
6.9
11.5
16.9
43.1
29.3
3.9
3.8
9.3
13.1
1.3
1.1
BGR Energy
Neutral
103
745
3,756
4,569
11.4
9.7
21.7
24.1
4.8
4.3
0.6
0.5
22.3
20.3
0.5
0.5
BHEL
Neutral
120
29,322
43,140
39,692
16.8
15.9
20.2
17.1
5.9
7.0
1.3
1.1
23.1
17.2
0.5
0.6
Blue Star
Buy
140
208
1,256
2,941
3,099
3.4
4.2
6.0
9.3
23.4
15.0
2.9
2.5
12.9
18.0
0.5
0.5
Crompton Greaves
Accumulate
90
103
5,754
13,446
15,272
6.7
7.6
6.6
8.9
13.5
10.1
1.5
1.4
11.4
14.0
0.5
0.5
Jyoti Structures
Neutral
17
143
3,312
3,555
9.0
9.0
4.5
6.5
3.9
2.7
0.2
0.2
5.6
7.7
0.3
0.3
KEC International
Buy
25
36
635
7,709
8,399
6.2
6.9
5.1
8.1
4.8
3.1
0.5
0.5
16.6
21.5
0.3
0.2
Thermax
Neutral
568
6,772
5,832
6,397
9.1
9.6
28.8
32.9
19.7
17.3
3.2
2.8
17.2
17.3
1.1
1.0
1,168
1,361
21,931
11,581
13,009
17.6
19.3
63.9
81.5
18.3
14.3
2.7
2.5
15.6
18.2
1.6
1.4
Cement
ACC
Buy
Market Outlook
August 13, 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
179
27,588
9,975
11,409
22.4
23.1
9.4
11.1
19.1
16.0
2.9
2.7
15.7
17.2
2.3
1.9
India Cements
Neutral
44
1,358
4,929
5,434
17.4
17.1
8.9
10.9
5.0
4.1
0.4
0.4
7.7
9.1
0.6
0.5
J K Lakshmi Cement
Buy
63
79
737
2,235
2,684
19.4
21.4
15.0
18.4
4.2
3.4
0.5
0.5
13.2
14.3
0.5
0.9
Madras Cements
Neutral
173
4,123
4,234
4,788
23.9
24.0
18.5
22.8
9.4
7.6
1.5
1.3
17.2
18.2
1.3
1.1
Shree Cement^
Neutral
3,908
13,613
6,607
7,520
27.5
26.7
322.8
374.3
12.1
10.4
3.0
2.4
27.8
25.6
1.4
1.0
UltraTech Cement
Neutral
1,689
46,315
22,021
25,274
22.0
21.6
99.5
113.3
17.0
14.9
2.7
2.3
16.7
16.6
2.1
1.9
51
60
799
1,912
2,131
21.0
21.5
5.0
5.5
10.1
9.3
0.7
0.7
8.8
7.6
1.7
1.8
118
1,715
1,824
2.4
6.2
(2.9)
(0.4)
(2.2)
(17.6)
0.3
0.3
0.5
0.5
Construction
Ashoka Buildcon
Buy
Consolidated Co
Neutral
IRB Infra
Buy
72
106
2,380
3,805
4,248
45.1
45.3
15.0
15.8
4.8
4.5
0.7
0.6
14.5
13.9
2.8
3.1
ITNL
Buy
126
156
2,450
7,423
7,970
27.5
28.7
30.3
32.0
4.2
4.0
0.6
0.5
15.0
14.0
2.4
2.5
IVRCL Infra
Neutral
11
348
5,673
5,892
8.1
8.4
1.4
1.8
7.9
6.2
0.2
0.2
2.0
2.6
0.5
0.5
Jaiprakash Asso.
Buy
31
41
6,979
12,946
14,897
24.7
25.6
1.2
2.7
25.6
11.8
0.5
0.5
2.0
4.3
2.4
2.2
Larsen & Toubro
Buy
797
1,002
73,785
68,946
78,040
10.0
10.0
49.0
55.2
16.3
14.4
2.3
2.1
14.9
15.3
1.2
1.1
Nagarjuna Const.
Buy
20
30
518
6,167
6,945
8.0
8.2
2.7
3.6
7.6
5.6
0.2
0.2
2.7
3.6
0.4
0.4
Punj Lloyd
Neutral
25
830
12,726
14,226
8.2
8.2
0.9
1.0
29.1
24.5
0.3
0.3
1.0
1.2
0.6
0.6
Sadbhav Engg.
Buy
70
100
1,057
2,462
2,731
10.6
10.6
5.9
6.7
11.9
10.5
1.2
1.1
10.2
10.5
0.7
0.7
Simplex Infra
Neutral
51
253
6,308
7,033
9.5
9.6
11.9
18.7
4.3
2.7
0.2
0.2
4.5
6.7
0.5
0.5
Unity Infra
Neutral
19
143
2,146
2,339
12.9
13.0
9.3
9.6
2.1
2.0
0.2
0.2
8.0
7.7
0.7
0.7
Allahabad Bank
Neutral
72
3,610
6,843
7,528
2.5
2.5
26.0
30.1
2.8
2.4
0.4
0.4
11.8
12.4
Andhra Bank
Reduce
60
51
3,332
4,868
5,390
2.4
2.5
12.3
16.6
4.9
3.6
0.5
0.4
7.9
10.0
Axis Bank
Buy
1,070
1,255
50,173
19,280
22,886
3.3
3.3
130.7
157.1
8.2
6.8
1.3
1.2
17.3
18.1
Bank of Baroda
Neutral
518
21,808
15,896
17,947
2.2
2.3
95.4
124.4
5.4
4.2
0.7
0.6
12.0
14.2
Bank of India
Neutral
177
10,521
14,482
16,069
2.3
2.2
55.0
62.2
3.2
2.8
0.5
0.4
13.7
13.9
Bank of Maharashtra
Neutral
39
2,610
4,529
4,780
3.0
2.8
12.3
11.8
3.2
3.4
0.5
0.4
16.5
14.1
Canara Bank
Neutral
247
10,958
11,454
12,378
2.0
2.0
52.4
60.5
4.7
4.1
0.5
0.5
9.8
10.4
Central Bank
Neutral
57
5,902
8,196
9,202
2.4
2.4
6.1
15.9
9.3
3.6
0.7
0.6
5.2
12.8
Corporation Bank
Neutral
278
4,246
5,641
6,083
2.0
2.0
82.7
98.1
3.4
2.8
0.4
0.4
12.6
13.5
Dena Bank
Neutral
47
1,640
3,307
3,531
2.2
2.4
17.5
21.6
2.7
2.2
0.3
0.3
11.9
13.2
Federal Bank
Neutral
331
5,651
2,798
3,250
3.0
3.0
38.1
51.9
8.7
6.4
0.8
0.8
9.8
12.3
Financials
Market Outlook
August 13, 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
769
830
119,600
8,679
10,350
3.6
3.6
37.5
44.7
20.5
17.2
4.3
3.8
30.1
30.7
HDFC Bank
Buy
602
745
143,744
27,392
33,264
4.6
4.6
36.3
45.1
16.6
13.3
3.4
2.8
21.9
22.8
ICICI Bank
Buy
866
1,038
99,990
25,727
29,969
3.2
3.2
83.2
96.7
10.4
9.0
1.4
1.3
14.9
15.4
IDBI Bank
Neutral
59
7,903
9,518
10,468
2.0
2.0
15.5
22.1
3.8
2.7
0.4
0.3
10.2
13.3
Indian Bank
Neutral
70
3,017
5,940
6,396
2.7
2.7
24.9
32.9
2.8
2.1
0.3
0.3
10.3
12.4
IOB
Neutral
40
3,701
7,692
8,627
2.2
2.3
8.1
15.2
5.0
2.6
0.3
0.3
5.9
10.5
J & K Bank
Neutral
1,064
5,159
3,038
3,370
3.7
3.9
214.2
202.6
5.0
5.3
0.9
0.8
19.8
16.3
LIC Housing Finance
Neutral
175
8,849
2,180
2,732
2.4
2.5
26.3
32.1
6.7
5.5
1.2
1.0
19.0
19.9
Oriental Bank
Neutral
142
4,144
6,918
7,459
2.6
2.5
46.7
52.5
3.0
2.7
0.4
0.3
10.8
11.1
Punjab Natl.Bank
Neutral
535
18,921
20,766
23,515
3.4
3.4
135.0
164.8
4.0
3.3
0.6
0.5
14.4
15.7
South Ind.Bank
Neutral
21
2,748
1,800
2,023
2.7
2.7
3.7
4.2
5.5
4.9
0.9
0.8
16.2
16.2
St Bk of India
Neutral
1,605
109,774
66,417
76,734
3.0
3.0
227.4
284.8
7.1
5.6
1.0
0.9
15.4
17.1
Syndicate Bank
Neutral
70
4,196
6,740
7,512
2.5
2.5
21.0
23.5
3.3
3.0
0.4
0.4
12.6
12.8
UCO Bank
Neutral
56
4,185
6,770
7,017
2.8
2.6
14.8
15.5
3.8
3.6
0.6
0.5
14.4
13.5
Union Bank
Neutral
118
7,069
10,458
11,809
2.5
2.5
32.0
40.6
3.7
2.9
0.5
0.4
11.6
13.4
United Bank
Neutral
36
1,340
3,386
3,884
2.3
2.5
12.4
20.0
2.9
1.8
0.3
0.3
10.0
14.7
Vijaya Bank
Neutral
37
1,853
2,718
2,941
1.8
1.9
7.0
9.0
5.3
4.2
0.4
0.4
8.2
9.8
Yes Bank
Neutral
301
10,835
4,417
5,486
2.7
2.8
42.9
49.5
7.0
6.1
1.5
1.3
23.9
22.8
Asian Paints
Neutral
436
41,855
12,332
14,524
16.3
16.1
13.9
16.0
31.4
27.2
10.0
7.9
35.2
32.5
3.3
2.8
Britannia
Neutral
732
8,771
6,417
7,502
6.1
6.3
21.3
25.5
34.4
28.8
11.2
9.0
35.7
34.6
1.4
1.1
Colgate
Neutral
1,327
18,041
3,588
4,130
18.9
19.4
41.2
48.4
32.2
27.4
31.3
23.8
105.1
98.5
4.9
4.2
Dabur India
Neutral
167
29,031
7,183
8,297
16.8
16.9
5.4
6.3
31.1
26.5
11.0
8.7
39.2
36.7
4.1
3.5
GlaxoSmith Con*
Neutral
3,986
16,762
3,617
4,259
16.1
16.4
122.2
148.7
32.6
26.8
10.2
8.2
34.1
33.7
4.2
3.5
Godrej Consumer
Neutral
861
29,308
7,801
9,017
16.2
15.9
25.1
29.7
34.3
29.0
7.4
6.1
24.9
24.2
3.9
3.3
HUL
Neutral
615
132,942
28,415
31,962
13.6
14.1
16.7
18.2
36.9
33.8
35.4
25.7
112.2
88.1
4.5
4.0
ITC
Neutral
336
265,509
34,294
39,991
36.8
37.0
11.3
13.3
29.8
25.2
9.8
7.9
36.1
34.9
7.4
6.3
Marico
Neutral
202
13,032
5,273
6,044
14.8
14.9
7.3
8.7
27.9
23.3
5.4
4.5
21.4
21.0
2.5
2.2
Nestle*
Neutral
5,103
49,202
9,330
10,860
21.8
21.9
123.3
149.7
41.4
34.1
20.3
14.8
56.4
50.3
5.3
4.5
Tata Global
Neutral
146
8,998
8,069
8,957
9.8
9.7
7.8
8.6
18.6
17.0
2.2
2.1
9.5
9.7
1.1
1.0
FMCG
Market Outlook
August 13, 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
IT
HCL Tech^
Accumulate
932
1,012
64,920
30,698
33,933
22.1
21.5
65.3
69.8
14.3
13.3
3.6
2.9
26.5
23.0
1.9
1.6
Hexaware*
Neutral
122
3,645
2,213
2,479
21.5
20.5
12.1
12.9
10.1
9.5
2.5
2.2
25.4
23.5
1.5
1.3
Infosys
Reduce
3,005
2,820
172,572
47,001
51,196
26.2
26.4
171.3
189.4
17.6
15.9
3.6
3.1
20.4
19.3
3.0
2.6
Infotech Enterprises
Accumulate
175
190
1,958
2,052
2,263
17.2
17.6
20.7
22.5
8.5
7.8
1.3
1.1
14.9
14.0
0.6
0.5
KPIT Cummins
Accumulate
129
145
2,499
2,670
3,018
17.3
16.7
14.1
15.3
9.2
8.5
1.8
1.4
20.9
18.4
0.9
0.7
Mindtree
Accumulate
998
1,050
4,148
2,768
3,006
19.7
19.9
103.1
105.3
9.7
9.5
2.3
1.9
24.8
20.3
1.2
1.0
Mphasis&
Neutral
406
8,535
6,372
6,852
18.0
18.2
38.0
43.5
10.7
9.3
1.5
1.3
14.3
14.2
0.9
0.7
NIIT
Sell
18
15
301
1,144
1,267
9.0
9.1
4.3
5.4
4.2
3.4
0.4
0.4
10.3
12.0
0.1
Persistent
Accumulate
520
568
2,079
1,533
1,715
22.2
22.5
49.2
56.8
10.6
9.2
1.7
1.5
16.4
16.1
1.0
0.8
TCS
Accumulate
1,815
2,060
355,157
79,005
91,576
29.7
30.0
88.6
103.1
20.5
17.6
6.5
5.1
31.5
29.2
4.3
3.6
Tech Mahindra
Accumulate
1,266
1,390
29,406
8,102
8,709
19.7
19.2
107.5
117.0
11.8
10.8
2.5
2.1
21.2
18.9
3.6
3.3
Wipro
Neutral
455
112,096
42,196
45,890
21.0
21.6
28.3
31.2
16.1
14.6
3.4
2.9
20.7
19.4
2.2
1.9
D B Corp
Buy
255
302
4,681
1,783
1,968
25.2
26.8
14.6
17.2
17.6
14.8
4.6
3.9
23.9
24.2
2.5
2.2
HT Media
Buy
96
117
2,263
2,205
2,380
15.1
15.6
8.3
9.3
11.6
10.4
1.4
1.3
11.6
11.6
0.7
0.5
Jagran Prakashan
Buy
90
116
3,002
1,683
1,845
22.3
23.7
6.5
7.8
13.8
11.6
2.8
2.5
21.3
23.1
1.9
1.7
PVR
Neutral
356
1,415
1,359
1,540
17.3
17.4
17.2
21.6
20.7
16.5
2.1
1.9
10.3
12.0
1.5
1.3
Sun TV Network
Neutral
405
15,976
2,287
2,551
69.7
70.5
20.0
23.3
20.3
17.4
5.0
4.4
26.4
27.3
6.6
5.8
Bhushan Steel
Neutral
462
10,459
13,794
17,088
30.9
33.5
49.3
66.6
9.4
6.9
1.0
0.9
11.3
13.5
2.4
1.9
Coal India
Neutral
274
173,289
70,158
74,443
29.8
30.2
25.2
27.1
10.9
10.1
2.7
2.3
33.3
33.1
1.6
1.5
Electrosteel Castings
Accumulate
12
13
388
1,976
2,017
11.8
12.7
1.3
2.6
9.4
4.6
0.1
2.6
5.2
0.5
0.1
GMDC
Buy
93
115
2,972
1,701
1,985
47.8
48.8
17.4
20.6
5.4
4.5
1.0
0.9
20.7
20.9
1.3
0.9
Hind. Zinc
Buy
104
120
43,986
12,389
13,093
48.5
51.7
15.2
17.0
6.8
6.1
1.2
1.0
18.5
18.0
1.4
0.9
Hindalco
Neutral
94
17,949
89,352
93,672
8.8
9.2
13.4
15.0
7.0
6.3
0.5
0.5
7.3
7.6
0.5
0.5
JSW Steel
Neutral
518
12,532
44,605
47,040
15.7
16.0
62.5
75.6
8.3
6.9
0.7
0.6
8.5
9.6
0.8
0.7
MOIL
Accumulate
198
223
3,321
956
982
42.3
44.3
25.3
26.2
7.8
7.5
1.1
1.0
14.6
13.7
0.8
0.9
Monnet Ispat
Buy
102
125
653
2,326
2,709
21.4
23.1
33.3
43.1
3.1
2.4
0.2
0.2
8.3
9.9
1.3
1.0
Nalco
Neutral
NMDC
Accumulate
SAIL
Neutral
Media
Metals & Mining
27
7,049
7,656
7,988
13.1
13.5
2.6
2.6
10.7
10.4
0.6
0.6
5.5
5.5
0.4
0.4
109
123
43,057
10,718
11,514
66.6
64.5
15.5
16.1
7.0
6.8
1.4
1.3
21.2
20.0
1.9
1.8
42
17,160
44,060
54,786
9.4
11.5
5.2
7.2
8.0
5.8
0.4
0.4
5.2
6.8
0.6
0.6
Market Outlook
August 13, 2013
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
135
155
11,715
79
92
26,448
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
3,817
5,781
12.1
17.7
27.0
29.6
5.0
4.6
0.6
0.5
12.9
12.5
3.9
2.6
44,493
45,599
22.4
23.9
16.8
19.2
4.7
4.1
0.5
0.4
10.5
10.9
0.5
0.5
Metals & Mining

Sesa Goa
Accumulate
Sterlite Inds
Buy
Tata Steel
Accumulate
237
260
9.7
10.8
30.9
47.6
7.7
5.0
0.7
0.6
9.6
13.4
0.5
0.5
Sarda
Accumulate
87
98
311
1,323
1,398
17.2
17.9
25.3
27.8
3.4
3.1
0.3
0.3
9.5
9.6
0.6
0.5
Prakash Industries
Godawari Power and
Ispat
Oil & Gas
Buy
30
37
402
2,486
2,637
15.2
15.0
13.7
14.2
2.2
2.1
0.2
0.2
9.1
8.7
0.4
0.3
Accumulate
69
78
227
2,171
2,317
14.9
15.8
36.4
46.6
1.9
1.5
0.2
0.2
11.6
13.0
0.5
0.4
Cairn India
Buy
301
364
57,543
18,403
17,925
71.9
62.1
62.1
57.4
4.9
5.3
1.0
0.9
22.6
17.8
1.9
1.7
GAIL
Neutral
300
38,073
49,700
48,822
16.0
16.6
32.9
33.4
9.1
9.0
1.4
1.2
15.9
14.4
0.3
0.2
ONGC
Buy
278
330
237,543 170,063 198,461
36.3
38.3
34.7
41.9
8.0
6.6
1.4
1.2
18.3
19.5
1.1
0.8
Reliance Industries
Neutral
845
272,994 397,546 421,695
8.9
8.7
72.3
76.8
11.7
11.0
1.2
1.1
12.3
11.8
0.7
0.6
Gujarat Gas*
Neutral
226
2,895
3,270
3,414
12.8
12.6
22.6
23.1
10.0
9.8
2.7
2.4
28.2
25.6
0.7
0.6
Indraprastha Gas
Neutral
266
3,723
3,700
4,218
23.4
22.8
26.7
30.4
10.0
8.7
2.1
1.8
22.7
21.8
1.1
0.9
Petronet LNG
Gujarat State Petronet
Ltd.
Pharmaceuticals
Accumulate
119
135
8,936
39,449
43,315
5.3
5.9
14.1
16.9
8.5
7.1
1.7
1.4
21.7
21.9
0.3
0.3
53
64
2,957
1,171
1,287
91.9
91.9
10.1
11.3
5.2
4.6
0.8
0.7
17.3
16.8
2.0
1.6
Alembic Pharma
Neutral
160
3,017
1,736
2,008
17.1
18.9
10.7
13.9
15.0
11.5
4.7
3.5
35.0
34.7
1.8
1.5
Aurobindo Pharma
Buy
181
271
5,262
6,641
7,637
15.9
15.9
17.3
20.6
10.5
8.8
1.7
1.4
19.5
18.9
1.2
1.1
Aventis*
Neutral
2,501
5,760
1,682
1,917
15.6
15.6
91.9
101.7
27.2
24.6
3.8
3.8
15.6
17.1
2.9
2.4
Cadila Healthcare
Buy
691
894
14,138
7,123
8,367
15.5
15.7
37.3
44.7
18.5
15.5
3.9
3.2
22.9
22.9
2.3
2.0
Cipla
Accumulate
415
477
33,321
9,274
10,796
23.1
23.1
21.0
23.8
19.8
17.4
3.2
2.7
17.2
16.8
3.3
2.8
Dr Reddy's
Buy
2,179
2,535
37,049
13,377
15,350
20.4
20.1
112.1
126.6
19.4
17.2
4.2
3.4
23.5
21.8
2.9
2.5
Dishman Pharma
Buy
48
73
387
1,394
1,534
22.5
22.4
14.8
16.6
3.2
2.9
0.3
0.3
10.8
11.0
0.9
0.8
GSK Pharma*
Neutral
2,286
19,367
2,744
2,964
22.0
23.4
59.2
66.6
38.6
34.3
9.6
9.3
24.9
27.5
6.2
5.7
Indoco Remedies
Buy
67
78
613
747
906
15.3
15.3
5.9
7.6
11.3
8.8
1.3
1.2
12.5
14.4
1.1
0.9
Ipca labs
Neutral
645
8,138
3,246
3,830
20.5
21.7
36.2
44.9
17.8
14.4
4.2
3.3
26.1
25.7
2.7
2.2
Lupin
Accumulate
819
904
36,685
11,576
13,855
22.0
22.0
35.8
43.0
22.9
19.1
5.6
4.4
27.1
25.8
3.2
2.7
Ranbaxy*
Neutral
368
15,567
11,400
12,060
10.5
12.5
17.5
22.5
21.0
16.4
3.4
2.9
17.0
19.1
1.3
1.2
Sun Pharma
Neutral
541
111,869
13,509
15,846
41.0
41.0
16.5
19.9
32.8
27.2
6.6
5.5
22.0
22.0
7.7
6.4
Buy
22,974 140,917 151,537
Power
GIPCL
Accumulate
NTPC
Buy
57
65
864
1,444
1,482
33.4
33.0
13.7
14.8
4.2
3.9
0.5
0.4
12.3
12.0
0.7
0.4
138
163
114,035
75,046
81,780
23.5
23.9
12.7
13.6
10.9
10.2
1.3
1.2
12.2
12.0
2.2
2.2
Market Outlook
August 13, 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
139
175
24,668
8,293
9,622
36.5
36.1
5.7
6.7
24.3
20.6
0.9
0.8
3.7
4.1
5.1
4.2
MLIFE
Accumulate
441
483
1,803
888
1,002
27.0
29.9
33.9
42.1
13.0
10.5
1.3
1.2
9.9
11.2
2.6
2.3
Bharti Airtel
Neutral
342
136,671
83,535
92,173
32.0
33.1
9.2
12.9
37.3
26.5
2.4
2.2
6.8
8.9
2.3
2.0
Idea Cellular
Neutral
163
54,170
25,640
28,459
26.9
27.2
4.0
4.9
40.8
33.0
3.4
3.1
8.4
9.4
2.5
2.2
Rcom
Neutral
126
26,069
22,751
24,628
30.9
31.3
3.4
5.3
36.9
24.0
0.8
0.7
2.1
3.1
2.7
2.4
Telecom
Others
Abbott India*
Buy
1,370
1,659
2,911
1,863
2,081
11.8
12.4
71.2
83.0
19.3
16.5
3.9
3.3
21.6
21.5
1.3
1.0
Bajaj Electricals
Buy
160
184
1,595
3,885
4,472
4.0
5.8
6.8
15.4
23.7
10.4
2.1
1.8
8.8
17.3
0.4
0.4
Cera Sanitaryware
Buy
513
613
649
631
797
14.5
13.7
42.6
51.1
12.0
10.0
2.9
2.3
26.5
25.3
1.0
0.8
Cravatex
Buy
260
459
67
248
284
6.5
7.3
27.2
38.2
9.6
6.8
1.5
1.3
15.7
18.5
0.4
0.4
Finolex Cables
Buy
55
68
834
2,563
2,899
9.8
9.8
10.1
11.3
5.4
4.8
0.8
0.7
14.3
13.8
0.2
0.2
Force Motors
Buy
259
349
338
2,304
2,649
3.1
3.6
28.0
43.7
9.3
5.9
0.3
0.3
3.1
4.7
0.1
0.1
Goodyear India*
Accumulate
325
345
750
1,458
1,542
8.3
9.0
32.3
37.0
10.1
8.8
1.8
1.6
19.5
19.3
0.3
0.3
Hitachi
Buy
109
153
297
1,080
1,199
8.9
9.1
18.3
19.1
6.0
5.7
1.1
0.9
19.2
17.0
0.4
0.3
Honeywell Automation* Neutral
2,385
2,109
1,842
2,131
7.7
7.8
111.1
130.9
21.5
18.2
2.7
2.4
13.3
13.9
1.0
0.9
IFB Agro
Accumulate
142
156
127
491
642
12.3
13.8
35.0
50.9
4.1
2.8
0.7
0.5
18.2
21.6
0.2
0.1
ITD Cementation
Buy
158
232
182
1,417
1,545
11.2
11.1
18.9
25.7
8.3
6.1
0.4
0.4
5.3
6.9
0.5
0.5
Jyothy Laboratories
Buy
168
199
2,793
1,220
1,476
13.3
13.6
5.5
9.0
30.5
18.6
3.5
3.1
12.1
17.7
2.6
2.1
MRF
Buy
13,438
16,218
5,699
11,799
12,587
14.1
13.5 1,792.0 1,802.0
7.5
7.5
1.6
1.3
23.5
19.2
0.6
0.6
Page Industries
Accumulate
4,375
4,669
4,879
1,059
1,296
19.5
19.8
125.0
155.6
35.0
28.1
17.3
12.7
56.3
52.2
4.7
3.8
Relaxo Footwears
Buy
725
981
870
1,196
1,401
11.9
12.6
55.6
75.4
13.1
9.6
3.1
2.4
27.1
28.1
0.9
0.7
Siyaram Silk Mills
Buy
192
228
180
1,158
1,322
10.6
11.0
60.5
75.9
3.2
2.5
0.5
0.4
16.8
18.1
0.4
0.3
Styrolution ABS India*
Buy
355
492
625
1,007
1,108
8.4
8.7
30.3
35.1
11.7
10.1
1.3
1.2
11.7
12.2
0.6
0.5
TAJ GVK
Buy
57
108
354
300
319
35.8
36.2
7.9
9.1
7.2
6.2
1.0
0.9
13.9
14.4
1.5
1.3
Tata Sponge Iron
Buy
256
371
394
814
849
17.0
17.6
64.6
69.2
4.0
3.7
0.5
0.5
14.5
13.8
0.1
(0.1)
TTK Healthcare
Buy
502
632
390
416
481
4.5
6.1
16.2
25.3
31.0
19.8
3.8
3.4
12.6
18.1
0.8
0.7
Tree House
Buy
252
297
908
153
194
53.0
52.8
12.4
15.6
20.4
16.1
2.4
2.1
11.8
13.1
6.1
4.7
TVS Srichakra
Buy
United Spirits
Neutral
Vesuvius India*
Buy
167
230
128
1,591
1,720
6.1
6.4
30.5
38.3
5.5
4.4
0.7
0.6
13.5
15.5
0.3
0.2
2,235
32,481
12,294
14,162
12.0
12.0
42.1
67.7
53.1
33.0
3.7
3.4
9.1
10.7
3.0
2.6
355
439
720
600
638
20.1
19.4
35.7
36.6
10.0
9.7
1.8
1.6
19.4
17.1
1.0
0.9
Market Outlook
August 13, 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
84
117
552
2,042
2,363
14.6
14.8
12.3
16.5
6.8
5.1
0.5
0.5
7.6
9.4
0.7
0.6
Others
HSIL
Buy
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 12, 2013
Market Outlook
August 13, 2013
Research Team Tel: 022 - 39357800
E-mail: research@angelbroking.com
Website: www.angelbroking.com
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Market Outlook: Dealer's Diary

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Market Outlook

August 13, 2013

More steps to halt INR depreciation

Net Inflows (August 8, 2013)

FII Derivatives (August 12, 2013)

More steps to halt INR depreciation

IIP surprises negatively, declines 2.2%

The IIP growth for

Performance on Sector-wise classification

Performance in the Use-based category

CPI inflation moderates to 9.6% in July 2013

Respite on trade deficit continues

Trade deficit for July 2013

L&T has bagged various orders worth `4,160cr

JLR registers strong growth in retail volumes in July 2013

Sesa Goa- Sterlite Industries get Bombay High Court approval

Hindalcos subsidiary Novelis reports 1QFY2014 results

EPS ROE P/E P/BV

28,582 33.4 17.7 8.3

33,087 38.7 18.2 7.2

SBI (CMP: `1,605/ TP: -/ Upside: -)

66,417 3.0 15,558

76,734 3.0 19,484

Op. Inc NIM

Tech Mahindra (CMP: `1,266/ TP: Under Review)

ROE P/E P/BV

Note: Numbers exclude Mahindra Satyam financials

DLF (CMP: `139/ TP: under review)

PAT EPS ROE

Marico (CMP: `202/ TP: -/ Upside: -)

Britannia Industries (CMP: `732/ TP: -/ Upside: -)

Indraprastha Gas (CMP: `268 / TP: -/ Upside: -)

Jyothy Laboratories (CMP: `168/ TP: `199/ Upside: 18%)

EPS ROE P/E P/BV

5.9 12.7 28.4

165 10.0 18.8 16.9

India Cement (CMP: `44/ TP: -/ Upside: -)

United Bank- (CMP: `35 / TP: - / Upside: -)

Tata Steel (CMP: `237, TP: `260, Upside: 10%)

Hindalco (CMP: `94/ TP:-/ Upside :-)

Sadbhav Engineering (CMP: `69 / TP: `100 / Upside: 45%)

P/E P/BV EV/EBITDA EV/Sales

IVRCL (CMP: `11 / TP: -/ Upside: -)

P/E P/BV EV/EBITDA EV/Sales

Quarterly Bloomberg Consensus Estimate

GMR Infra Consolidated (13/08/2013)

EBITDA margin (%)

Indian Oil Corp (13/08/2013)

Mahindra & Mahindra (13/08/2013)

EBITDA margin (%)

Hindalco Industries (13/08/2013)

EBITDA margin (%)

Tata Steel Consolidated (13/08/2013)

EBITDA margin (%)

EBITDA margin (%)

EBITDA margin (%)

EBITDA margin (%)

Essar Oil (14/08/2013)

HDIL Consolidated (14/08/2013)

LIC Housing Finance (14/08/2013)

Economic and Political News

Government to increase import duty on gold, luxury goods

Shriram Properties to bid for Britannia's factory land in Chennai