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Market Outlook November 8, 2012
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Market Outlook November 8, 2012
Dealer’s Diary
Indian markets are expected to open in the red today, tracing negative opening
trades in the SGX Nifty and most of the Asian indices. Most of the Asian bourses
have declined as China’s Communist Party meets to pick a new leader and
Obama’s re-election sets up a budget showdown.
U.S markets moved sharply lower during trading on Wednesday, as the focus on
Wall Street quickly shifted to the looming fiscal cliff and the possibility of higher
taxes following re-election of Barack Obama. Most of the European bourses began
the trading session in positive territory, following the announcement that Barack
Obama had won a second U.S. presidential term. The markets later reversed after
Draghi stated that the debt crisis in the Eurozone is beginning to have an impact
on the German economy. Concerns over the situation in Greece also weighed on
investors, as they await the results of a vote in the Greek Parliament.
Meanwhile, Indian markets rose for a sixth consecutive session on Wednesday as a
second Obama administration meant that the U.S. Federal Reserve will stay its
course on expansionary monetary policy which would trigger more capital inflows
into emerging markets.
Markets Today
The trend deciding level for the day is 18,887 / 5,750 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 18,989 – 19,075 / 5,788 – 5,816 levels. However, if NIFTY trades below
18,887 / 5,750 levels for the first half-an-hour of trade then it may correct up to
18,801 – 18,700 / 5,722 – 5,684 levels.
SENSEX 18,700 18,801 18,887 18,989 19,075
NIFTY 5,684 5,722 5,750 5,788 5,816
News Analysis
2QFY2013 Result Review: Bharti Airtel, Tata Motors, NMDC, Cadila, UCO
Bank, GSPL, IGL
2QFY2013 Result Preview: ONGC, Sun Pharma, SAIL ,Ranbaxy, RCom, Ashok
Leyland, NCC, ABLRefer detailed news analysis on the following page
Net Inflows (November 05, 2012)
FII 1,363 950 413 1,611 95,665
MFs 316 406 (89) (6) (15,156)
FII Derivatives (November 07, 2012)
Index Futures 1,242 1,364 (122) 11,489
Stock Futures 1,136 1,081 55 29,732
Gainers / Losers
Apollo Hosp 881 7.6 Cadila Health 859 (3.1)
Unitech 26 6.9 Adani Ports 131 (2.6)
L&T Finance 59 6.7 Piramal Ent 478 (2.4)
Union Bank 232 6.4 Tata Power 104 (2.4)
Pidilite Inds 201 5.7 NMDC 182 (2.1)
BSE Sensex 0.5 85.0 18,902
Nifty 0.6 35.7 5,760
MID CAP 0.8 52.9 6,718
SMALL CAP 0.7 51.7 7,134
BSE HC 0.5 42.2 7,860
BSE PSU 0.5 35.4 7,286
BANKEX 1.1 141.6 13,397
AUTO 0.6 66.0 10,652
METAL 0.2 22.3 10,289
OIL & GAS (0.3) (25.6) 8,338
BSE IT 0.7 38.2 5,817
Dow Jones (2.4) (313.0) 12,933NASDAQ (2.5) (74.7) 2,937
FTSE (1.6) (93.3) 5,792
Nikkei (0.0) (2.3) 8,973
Hang Seng 0.7 155.4 22,100
Straits Times 0.8 23.9 3,043
Shanghai Com (0.0) (0.3) 2,106
INFY (1.6) (0.7) $43.3
WIT (2.2) (0.2) $8.3IBN (1.6) (0.6) $39.6
HDB (1.2) (0.4) $37.7
Advances 1,672 927
Declines 1,205 573
Unchanged 131 84
BSE 2,329
NSE 11,070
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Market Outlook November 8, 2012
Result Review
Bharti Airtel (CMP: ` 271 / TP: Under review)
Bharti Airtel’s 2QFY2013 revenue as well as operating margins came above our
as well as street estimates, however its bottom line disappointed because of higher
tax paid. Bharti’s top line increased by 4.7% qoq to ` 20,283cr, led by 4.8% qoq
growth in mobile revenues from India business. This was majorly because of a
one-time revenue flow of ~ ` 586cr because if a favorable judgment of TDSAT.
Adjusting for this, revenues grew by 1.7% qoq, largely inline with expectations. In
terms of KPIs for India business, MOU declined by 3.8% qoq to 417min while
ARPM remained stable qoq at ` 0.43/min. Africa revenues grew by 3.9% qoq, on
the back of considerable growth in MOU from 120min to 138min. Consolidated
EBITDA margin grew by ~110bp qoq to 31.3%, which was a positive surprise, but
adjusting to the one-off, EBITDA margin grew by merely ~30bp qoq to 30.5%.
Adding to positives, EBITDA margin of Africa business came in at 27.2% as
compared to 25.8% in 1QFY2013. PAT came in lower than expected at ` 721cr,
down 5% qoq, due to higher tax expense with tax rate coming in at ~52%. On
prima facie the results seems good but it is led by one-offs. We maintain Neutral
view on the stock reiterating cautious stance on the telecom sector as the
regulatory challenges such as one-time payout, re-farming of spectrum and
upcoming 2G spectrum auction continue.
FY2013E 79,147 31.3 3,771 9.9 7.0 27.5 1.9 6.5 2.0
FY2014E 86,745 32.5 5,721 15.1 9.7 18.1 1.8 5.2 1.7
Tata Motors (CMP: ` 269/ TP: Under Review/ Upside: -)
For 2QFY2013, Tata Motors (TTMT) registered lower-than-expected performance
on the bottom-line front due to contraction in operating margins (mainly led by
deteriorating standalone performance) on a sequential basis and higher tax rate
(32% as against 27.3% in 1QFY2013). Nevertheless, Jaguar and Land Rover (JLR)
witnessed margin expansion of 40bp qoq due to superior product-mix and
favorable currency movement.
The consolidated top-line registered a strong 19.9% yoy growth to ` 43,403cr,which was broadly in-line with our estimates aided by 35.3% yoy growth in JLR
revenues. JLR performance was driven by strong 13.9% yoy growth in volumes (led
by Evoque - 23,340 units and robust growth in China - volumes up 47% yoy) and
due to depreciation of INR versus GBP (down 18.2% yoy). The JLR net average
realization however, declined 1% yoy (2.6% qoq) primarily on account of higher
share of Evoque in the product-mix. Standalone revenues declined 3.6% yoy as net
average realization declined 8.6% yoy on account of lower share of medium and
heavy commercial vehicles (MHCV) in the product-mix. On a sequential basis
though, top-line stood flat as the impact of 5.9% decline in JLR revenues (volumes
down 7.2% on plant shutdowns due to maintenance activity and holidays) was
mitigated by 17.9% increase (driven by volume growth of 17.1%) in standalone
revenues.
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Market Outlook November 8, 2012
On a sequential basis, operating margins declined 99bp to 12.3% (lower than our
estimates of 12.9%) due to 70bp and 60bp increase in other expenditure and
employee expenses as a percentage of sales. While, other expenditure increased
due to higher marketing spends and higher discounts on the passenger vehicles
(PV) and MHCV vehicles; employee expenses was higher due to employee addition
at Halewood and Solihull plants. On the JLR front, operating margins expanded40bp qoq to 14.8%, slightly ahead of estimates, led by favorable product-mix
(higher share of Range Rover Sport) and exchange rate movement. However,
standalone margins deteriorated further to 5.2% (down 137bp qoq) on adverse
product-mix, higher discounting and marketing spends in PV and MHCV business
and lower operating leverage benefits. As a result, operating profit declined 7.3%
qoq. However, adjusted net profit declined 22.4% qoq (10% yoy) to ` 2,085cr on
account of higher tax-rate. During the quarter, JLR paid a dividend of GBP150mn
to the parent company due to which other income at the standalone level stood at
` 1,439cr ( ` 130cr in 2QFY2012). In the absence of the dividend income,
standalone operations could have reported a net loss in 2QFY2013. At the CMP of
` 269, the stock is trading at 6x FY2014E earnings.
FY2013E 195,096 12.8 12,370 39.0 32.6 6.9 2.0 3.8 0.5
FY2014E 219,428 13.0 14,253 44.9 28.8 6.0 1.5 3.2 0.4
NMDC (CMP- ` 182, TP: ` 198, Upside: 9%)
NMDC’s 2QFY2013 results were weaker-than-expected due to lower-than-
expected sales volumes. NMDC’s net sales fell by 14.7% yoy to ` 2,612cr (below
our estimates of ` 2,950cr) mainly due to lower volumes which declined 22.8% yoy
to 5.85MT. Although iron ore realizations increased 10.2% yoy to ` 4,442/tonne, it
was offset by higher selling costs which grew by 259.8% yoy to ` 213cr. Hence,
EBITDA declined by 20.6% yoy to ` 1,935cr and EBITDA margin contracted 545bp
yoy to 74.1%. Other income grew 15.9% yoy to ` 583cr mainly due to higher cash
balance. Consequently, net profit decreased by 14.5% yoy to ` 1,678cr (below our
estimate of ` 1,838cr).
FY2013E 11,209 78.4 7,154 18.0 26.4 10.1 2.4 5.8 4.5
FY2014E 12,525 78.8 8,030 20.3 24.4 9.0 2.0 4.8 3.8
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Market Outlook November 8, 2012
Cadila Healthcare (CMP: ` 859, TP: Under Review)
Cadila results came in just in line with expectations on the top-line, while the net
profits came in below expectations. For the quarter, it posted a 24.0% growth in
net sales to ` 1,513cr on the back of robust growth on the domestic formulation
and exports front. On the OPM front, the OPM’s came down by 5.0% to end theperiod at 12.9% ( v/s 18.0% in 2QFY2012), mainly on back of the sharp dip in the
GPM, which came down to the 62.2% (from 68.0% in 2QFY2012). Thus, the
reported net profit came in at ` 95cr, a dip of 7.5% yoy.
FY2013E 6,148 18.6 736 36.0 25.8 24.4 5.6 16.9 3.1
FY2014E 7,386 19.6 943 46.1 26.8 19.0 4.5 13.0 2.6
UCO Bank posted a disappointing performance for 2QFY2013. NII remained flat
yoy at ` 1,013cr (possibly due to interest reversal on slipped accounts). Non-
interest income grew at a subdued pace of 4.9% yoy to ` 213cr. Consequently,
operating income and operating profit for the bank came in flattish at ` 1,226cr
and ` 714cr, respectively. Tha bank witnessed significant deterioration on the asset
quality front. On an absolute basis, gross and net NPA levels increased by 27.3%
and 32.7% qoq, respectively. Gross and net NPA ratios were higher by 100bps
and 71bps during the quarter to 4.9% and 2.9%, respectively. Amid stress on the
asset quality front, provisioning expenses came in higher by 25.7% yoy, whichresulted in sharp decline of 55.1% yoy in earnings to ` 104cr.
At the current market price, the stock trades at a relatively expensive valuation of
0.8x FY2014 ABV.
FY2013E 5,411 2.4 1,299 17.0 87.9 0.7 16.7 4.4 0.8
FY2014E 6,124 2.5 1,267 16.5 97.9 0.6 14.4 4.5 0.8
Gujarat State Petronet (CMP: ` 75 / TP: -/ Upside: -)Gujarat State Petronet Ltd (GSPL) reported its 2QFY2013 results. Its total operating
revenues decreased by 1.4% yoy to ` 273cr mainly due to decline in transmission
volumes, partially offset by higher tariffs. Transmission volumes for 2QFY2013
decreased by 18.8% yoy to 28.6mmscmd while transmission tariff grew by 19.6%
yoy to ` 1.0/scm. EBIDTA increased by 2.4% yoy to ` 255cr mainly due to lower
operating expenses. During the quarter, other income rose by 36.0% to ` 19cr.
Also, tax rate stood decreased to 32.5% in 2QFY2013 compared to 33.6% in
2QFY2012. Hence, PAT increased by 2.7% yoy to ` 133cr.
FY2013E 1,105 91.8 515 9.1 18.6 8.2 1.4 3.8 3.5
FY2014E 997 91.9 464 8.2 14.6 9.1 1.3 4.1 3.8
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Market Outlook November 8, 2012
Indraprasth Gas (CMP: ` 265 / TP: -/ Upside: -)
Indraprasth Gas reported robust 2QFY2013 results. Net sales grew by 43.1% yoy
to ` 855cr which was driven by increases in both, sales as well as realizations.CNG volumes grew by 9.2% yoy to 194mnkg while PNG volumes grew by 1.8%
yoy to 81mmscm during the quarter. CNG realization increased 28.1% yoy to
37.9/kg. EBITDA increased by 30.8% yoy to ` 207cr. However, EBITDA margin
slipped 228bp yoy to 24.2% due to higher cost of gas purchases. Interest expense
stood at ` 14cr in 2QFY2013, compared to ` 12cr in 2QFY2012. Tax provision for
this quarter was also higher at 33.0% compared to 31.8% in 2QFY2012. Hence,
net profit grew by 28.5% yoy to ` 99cr.
FY2013E 3,213 23.3 346 24.7 25.4 10.7 2.5 5.3 1.0
FY2014E 3,205 25.7 403 28.8 24.3 9.2 2.0 4.1 1.2
Result Preview
ONGC (CMP: ` 267/TP: ` 312/ Upside: 17%)
ONGC is slated to announce its 2QFY2013 results today. We expect the
company’s top-line to decrease by 16.4% yoy to ` 19,175cr mainly due to increase
in subsidy burden. On the operating front, the EBITDA margin is expected to
contract by 745bp yoy to 55.7%. The bottom-line is expected to fall by 34.5% yoy
to ` 5,662cr.
FY2013E 147,139 33.9 26,244 30.7 18.3 8.7 1.5 3.9 1.3
FY2014E 154,821 33.7 27,636 32.3 17.2 8.3 1.4 3.6 1.2
Sun Pharma (CMP: ` 701/ TP:-/ Upside :-)
Sun Pharma is likely to clock a 31.0% yoy growth on the sales front, led by bothexports and domestic sales. Operating profit margins would decline by 120bps
with margins likely to be around 40.2%. This along with a higher tax outgo would
lead to an expected net growth of 11.3% yoy during the quarter.
FY2013E 9,752 41.6 2,689 26.0 20.3 27.0 5.1 15.1 6.3
FY2014E 12,134 41.6 2,925 28.2 18.8 24.8 4.3 11.4 4.7
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Market Outlook November 8, 2012
SAIL (CMP: ` 83/ TP:-/ Upside :-)
SAIL is expected to announce its 2QFY2013 results today. We expect the
company’s top-line to grow by 1.1% yoy to ` 10,960cr due to better realizations.
Also we expect the EBITDA margin to improve by 228bp yoy to 13.2% on account
of higher realizations coupled with lower coking coal and iron ore costs. Thebottom-line is expected to fall by 4.1% yoy to ` 962cr.
FY2013E 47,252 14.2 3,952 9.6 9.6 8.7 0.8 5.9 0.8
FY2014E 60,351 14.8 4,847 11.7 10.8 7.1 0.7 5.0 0.7
Ranbaxy Labs (CMP: ` 550/ TP:-/ Upside :-)
Ranbaxy is expected to post a growth of 34.7% with sales at ` 2,768cr during
3QCY2012. The OPM is expected to be at 13.5% V/s 5.0% in 3QCY2011.
However, the net profit is likely to come in at ` 357cr, V/s a loss of ` 124cr during
the corresponding period of the previous year.
CY2012E 12,046 18.0 1320 31.3 39.1 17.6 6.0 12.3 2.0
CY2013E 11,980 15.8 1258 29.8 28.9 18.5 4.8 12.0 1.9
Reliance Communication (CMP: ` 58 / TP: - / Upside: -)
Reliance Communications (RCom) is slated to announce its 2QFY2013 results
today. We expect the company to record revenues of ` 5,199cr, down 2.3% qoq.
This is expected primarily on the back of qoq flat ARPM at ` 0.43/min and 1.7%
qoq decline in MOU to 225min. The EBITDA margin is expected to decline by
10bp qoq to 30.9%. PAT is expected to come in at ` 170cr.
FY2013E 20,650 32.3 873 4.2 2.3 13.7 1.7 6.8 2.2
FY2014E 20,935 33.0 1,186 5.7 3.1 10.1 1.7 6.2 2.0
Ashok Leyland (CMP: ` 25/ TP: ` 30/ Upside: 22%)
Ashok Leyland (AL) is slated to announce its 2QFY2013 results today. The
company’s top-line is expected to grow by 8% yoy to ` 3,326cr led by a ~26% yoy
growth in volumes mainly led by its LCV - Dost. We expect net average realization
to decline by ~17% yoy on account of higher contribution from its lower priced
vehicle, Dost. On the operating front, the EBITDA margin is expected to witness a
~140bp yoy contraction to 9.3% mainly due to change in product-mix and higher
discounts. As a result, the net profit is expected to decline by 24% yoy to ` 117cr. At
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Market Outlook November 8, 2012
` 25, the stock is trading at 9x FY2014E earnings.
FY2013E 14,920 9.0 579 2.2 13.3 11.4 2.1 5.8 0.5FY2014E 16,850 9.3 731 2.7 15.6 9.0 1.8 4.9 0.4
Nagarjuna Construction Company (CMP: ` 45 / TP: - /Upside: -)
We expect subdued performance from Nagarjuna Construction Company (NCC)
for this quarter. On the top-line front, NCC is expected to post a growth of 12.0%
to ` 1,221cr. The EBITDA margin is expected to witness a dip of 126bp yoy to 8.2%
for the quarter. However, the blow is expected on the earnings front, as we expect
the company to post a decline of 53.9% on a yoy basis to ` 5cr for the quarter. This
would be primarily on account of muted revenue and EBITDAM and burgeoning
interest cost (yoy jump of 36.7%), led by elongated working capital cycle.
FY2013E 5,804 8.0 78 3.0 3.2 14.9 0.5 7.9 0.6
FY2014E 6,513 8.6 90 3.5 3.6 13.0 0.5 8.0 0.7
Ashoka Buildcon (CMP: ` 221 / TP: ` 304 / Upside: 38%)
For 2QFY2013, Ashoka Buildcon (ABL) is expected to post a revenue growth of40.5% yoy on the consolidated revenue front to ` 403cr. This is mainly on account
of lower base of last year. On the margin front, we expect ABL to post an EBITDAM
of 22.1%, registering a dip of 134bp on a yoy basis. We expect the company to
post a 33.1% yoy decline in its earnings to ` 22cr for the quarter.
FY2013E 2,032 22.4 142 27.0 13.0 13.0 1.0 8.8 2.0
FY2014E 2,311 22.4 166 31.6 13.4 13.4 0.9 10.1 2.2
Quarterly Bloomberg Brokers Consensus Estimate
Net sales 3,183 3,095 3 2,941 8
EBITDA 268 331 (19) 241 11
EBITDA margin (%) 8.4 10.7 8.2
Net profit 86 154 (44) 67 29
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Market Outlook November 8, 2012
Net sales 1,204 1,070 13 1,241 (3)
EBITDA 211 176 20 232 (9)
EBITDA margin (%) 17.5 16.4 18.7
Net profit 157 129 22 181 (13)
Net sales 20,990 22,616 (7) 20,084 5
EBITDA 11,714 14,469 (19) 9,930 18
EBITDA margin (%) 55.8 64.0 49.4
Net profit 6,144 8,642 (29) 6,078 1
Net sales 2,668 2,023 32 3,174 (16)
EBITDA 406 174 133 511 (21)
EBITDA margin (%) 15.2 8.6 16.1
Net profit 347 (461) - (584) -
Net sales 5,243 4,689 12 4,878 7
EBITDA 1,569 1,357 16 1,595 (2)
EBITDA margin (%) 29.9 28.9 32.7
Net profit 158 323 (51) 192 (18)
Net sales 11,096 10,837 2 10,641 4
EBITDA 1,412 1,327 6 1,515 (7)
EBITDA margin (%) 12.7 12.2 14.2
Net profit 771 495 56 696 11
Net sales 2,603 1,895 37 2,658 (2)
EBITDA 1,079 784 38 1,242 (13)
EBITDA margin (%) 41.5 41.4 46.7
Net profit 773 707 9 921 (16)
Net sales 57,692 42,282 36 54,523 6
EBITDA 1,621 (2,695) - (8,150) -EBITDA margin (%) 2.8 (6) (15)
Net profit (2,113) (3,229) - (8,837) -
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Market Outlook November 8, 2012
Net sales 14,733 13,148 12 16,501 (11)
EBITDA 3,221 2,482 30 4,815 (33)
EBITDA margin (%) 21.9 18.9 29.2
Net profit 3,268 2,593 26 4,469 (27)
Net sales 316 411 (23) 198 59
EBITDA 189 202 (7) 290 (35)
EBITDA margin (%) 59.8 49.2 146.5
Net profit 112 149 (25) 105 6
Net sales 49,284 37,030 33 44,076 12
EBITDA 1,527 (2,870) (153) (8,455) (118)
EBITDA margin (%) 3.1 (8) (19)
Net profit (1,579) (3,364) (53) (9,249) (83)
Net sales 110,500 88,725 25 96,603 14
EBITDA 2,140 (5,322) (140) (19,942) (111)
EBITDA margin (%) 1.9 (6) (21)
Net profit (616) (7,486) (92) (22,451) (97)
Net sales 4,920 4,407 12 4,680 5
EBITDA 1,763 1,704 3 1,593 11
EBITDA margin (%) 35.8 38.7 34.0
Net profit 917 896 2 397 131
Net profit 983 419 135 972 1
Net profit 3,527 2,810 26 3,752 (6)
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Market Outlook November 8, 2012
Net sales 31,512 32,507 (3) 33,548 (6)
EBITDA 2,846 27,500 (90) 3,403 (16)
EBITDA margin (%) 9.0 84.6 10.1
Net profit 298 158 88 558 (47)
Net sales 3,861 3,540 9 3,021 28
EBITDA 521 674 (23) 495 5
EBITDA margin (%) 13.5 19.0 16.4
Net profit 253 345 (27) 164 54
Net sales 2,010 1,791 12 2,057 (2)
EBITDA 306 332 (8) 351 (13)
EBITDA margin (%) 15.2 18.5 17.1
Net profit 95 148 (36) 145 (34)
Net sales 497 626 (21) 408 22
EBITDA 87 138 (37) 55 58
EBITDA margin (%) 17.5 22.0 13.5
Net profit 61 94 (35) 41 49
Economic and Political News
Chidambaram to meet State FMs on GST tomorrow
India may attract $3bn FDI in 5 yrs in multi-brand retail: Crisil
India could revert to 8.5-9% growth in two years: Kaushik Basu
Corporate News
Cabinet may take up pharma policy today
Cabinet to discuss spectrum fees today
Cabinet to discuss 10% stake sale In HAL tomorrow
Govt. pushes back decision on Nalco divestment to March qtr
KFA needs to raise US $1bn by Nov 30: SBI
Need to study sourcing clause before opening stores: Tesco Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
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Date Company
November 08, 2012ONGC, Sun Pharma, SAIL, Ranbaxy, Rcom, Cummins India, Ashok Leyland, Areva, Monnet Ispat, Page Industries, PTCIndia, Nagarjuna Const., Prakash Industries, Finolex Cables, Goodyear
November 09, 2012Coal India, St Bk of India, IOC, Jindal Steel, Tata Steel, BPCL, Power Fin.Corpn., GSK Pharma, United Spirits, HPCL,Essar Oil, Sun TV Network, Tata Chemicals, Suzlon Energy, Corporation Bank, MOIL, HDIL, Aurobindo Pharma,CESC, Sadbhav Engg., Punj Lloyd, Anant Raj, Graphite India, Orchid Chemicals, Patel Engg., Subros, Disa
November 10, 2012 Unitech, TVS Srichakra, Abbott India, S. Kumars Nationwide
November 11, 2012
November 12, 2012 DLF, Nestle, Jaiprakash Asso., GMR Infra., Bhushan Steel, Simplex Infra, SpiceJet
November 13, 2012
November 14, 2012 Madhucon Proj
November 15, 2012 Consolidated Co
Source: Bloomberg, Angel Research
Result Calendar
Global economic events release calendar
Date Time Country Event Description Unit Period Bloomberg Data
Last Reported Estimated
November 8, 2012 5:30PM UK BOE Announces rates % Ratio Nov 8 0.50 0.50
6:15PM Euro Zone ECB announces interest rates % Nov 8 0.75 0.75
7:00PM US Initial Jobless claims Thousands Nov 3 363.00 366.00
November 9, 2012 7:00AM China Consumer Price Index (YoY) % Change Oct 1.90 1.90
11:00AM China Industrial Production (YoY) % Change Oct 9.20 9.40
November 10, 2012 5:29PM China Exports YoY% % Change Oct 9.90 10.00
November 12, 2012 11:00AM India Industrial Production YoY % Change Sep 2.70 2.90
November 13, 2012 3:00PM UK CPI (YoY) % Change Oct 2.20 --
November 14, 2012 12:00PM India Monthly Wholesale Prices YoY% % Change Oct 7.81 8.00
3:00PM UK Jobless claims change % Change Oct (4.00) --
7:00PM US Producer Price Index (mom) % Change Oct 1.10 0.10
November 15, 2012 12:30PM Germany GDP nsa (YoY) % Change 3Q P 0.50 --
3:30PM Euro Zone Euro-Zone CPI (YoY) % Oct 2.60 --
3:30PM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 3Q A (0.20) --
7:00PM US Consumer price index (mom) % Change Oct 0.60 0.10
November 16, 2012 7:45PM US Industrial Production % Oct 0.41 0.20
November 19, 2012 8:30PM US Existing home sales Millions Oct 4.75 --
November 20, 2012 7:00PM US Housing Starts Thousands Oct 872.00 --
7:00PM US Building permits Thousands Oct 890.00 --
November 22, 2012 2:00PM Germany PMI Services Value Nov A 48.40 --
2:00PM Germany PMI Manufacturing Value Nov A 46.00 --
8:30PM Euro Zone Euro-Zone Consumer Confidence Value Nov A (25.70) --
November 27, 2012 3:00PM UK GDP (YoY) % Change 3Q P -- --
8:30PM US Consumer Confidence S.A./ 1985=100 Nov 72.20 --
November 28, 2012 8:30PM US New home sales Thousands Oct 389.00 --
November 29, 2012 2:25PM Germany Unemployment change (000's) Thousands Nov 20.00 --
7:00PM US GDP Qoq (Annualised) % Change 3Q S 2.00 --
November 30, 2012 11:00AM India Qtrly GDP YoY% % Change 3Q 5.50 --
Source: Bloomberg, Angel Research
November 08, 2012
Market Outlook
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Market Strategy
November 08, 2012
www.angelbroking.com
Macro watch
Exhibit 1 : Q uarterly G D P trends
3. 5
5. 7
9 .0
7. 5
8. 5
7. 68. 2
9. 2
8. 0
6. 76. 1
5. 3 5. 5
3. 0
4. 0
5. 0
6. 0
7. 0
8. 0
9. 0
10.0
4 Q
F Y 0 9
1 Q
F Y 1 0
2 Q
F Y 1 0
3 Q
F Y 1 0
4 Q
F Y 1 0
1 Q
F Y 1 1
2 Q
F Y 1 1
3 Q
F Y 1 1
4 Q
F Y 1 1
1 Q
F Y 1 2
2 Q
F Y 1 2
3 Q
F Y 1 2
4 Q
F Y 1 2
1 Q
F Y 1 3
(%)
Source: CSO, Ang el Research
Exhibit 2 : IIP trends
2. 5
(5.0)
6. 0
2 .7
1. 0
4. 3
(2.8)
(1.3)
2. 5
(1.8)
(0.2)
2. 7
(6.0)
(4.0)
(2.0)
-
2. 0
4. 0
6. 0
8. 0
S e p
- 1 1
O
c t - 1 1
N o v
- 1 1
D e c
- 1 1
J a n
- 1 2
F e
b -
1 2
M
a r
- 1 2
A p r
- 1 2
M
a y
- 1 2
J u n
- 1 2
J u
l - 1 2
A u g
- 1 2
(%)
Source: M O SPI, Ang el Research
Exhibit 3 : M onthly WPI inflation trends
9. 9 9. 5
7. 76. 9
7. 4 7. 7 7. 5 7. 6 7. 6 7. 5 7. 6 7. 8
0. 0
2. 0
4. 0
6. 0
8. 0
10.0
12.0
O
c t - 1 1
N o v
- 1 1
D e c
- 1 1
J a n
- 1 2
F e
b -
1 2
M
a r - 1
2
A p r - 1
2
M
a y
- 1 2
J u n
- 1 2
J u
l - 1 2
A u g
- 1 2
S e p
- 1 2
(%)
Source: M O SPI, Ang el Research
Exhibit 4 : M a nufacturing a nd services PM I
48.0
50.0
52.0
54.0
56.0
58.0
60.0
S e p
- 1 1
O
c t - 1 1
N o v
- 1 1
D e c
- 1 1
J a n
- 1 2
F e
b - 1
2
M
a r
- 1 2
A p r
- 1 2
M
a y
- 1 2
J u n
- 1 2
J u
l - 1 2
A u g
- 1 2
S e p
- 1 2
M fg. PM I Services PM I
Source: Ma rket, Angel Research; N ote: Level above 50 indicates expansion
Exhibit 5 : Expo rts an d impo rts growth trends
(30.0)
(15.0)
0. 0
15.0
30.0
45.0
O
c t - 1 1
N o v
- 1 1
D e c
- 1 1
J a n
- 1 2
F e
b - 1
2
M
a r -
1 2
A p r -
1 2
M
a y
- 1 2
J u n
- 1 2
J u
l - 1 2
A u g
- 1 2
S e p
- 1 2
Exp orts yo y growth Im ports yo y growth( %)
Source: Bloomberg, Angel Research
Exhibit 6 : Key policy rates
8.00
7.00
4.25
4.00
5.00
6.00
7.00
8.00
9.00
N o v
- 1 1
D e c
- 1 1
J a n
- 1 2
F e
b - 1
2
M
a r -
1 2
A p r -
1 2
M
a y
- 1 2
J u n
- 1 2
J u
l - 1 2
A u g
- 1 2
S e p
- 1 2
O
c t - 1 2
Repo rate Reverse Repo rate C RR(%)
Source: RBI, Angel Research
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Company Name Reco CMP Target Mkt Cap Sales ( Čcr ) OPM(%) EPS (Č) PER(x) P/BV(x) RoE(%) EV/Sales(x)
( Č ) Price ( Č) ( Č cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
Agri / Agri Chemical
Rallis Neutral 149 - 2,890 1,466 1,686 14.8 14.8 7.0 8.1 21.2 18.4 4.5 3.8 22.6 22.5 2.0 1.7
United Phosphorus Buy 119 170 5,490 8,421 9,263 16.5 16.5 15.0 17.0 7.9 7.0 1.2 1.0 15.6 15.5 0.8 0.7
Auto & Auto Ancillary
Amara Raja Batteries Neutral 256 - 4,367 2,844 3,275 15.4 15.6 15.9 18.8 16.1 13.6 4.1 3.3 28.9 26.9 1.3 1.1
Apollo Tyres Buy 84 103 4,244 13,755 15,389 11.3 11.3 12.8 15.1 6.6 5.6 1.2 1.0 20.6 20.3 0.5 0.4
Ashok Leyland Buy 25 30 6,598 14,920 16,850 9.0 9.3 2.2 2.8 11.4 9.0 2.1 1.8 13.3 15.6 0.5 0.5
Automotive Axle# Accumulate 380 430 574 993 1,140 11.6 11.5 36.9 43.0 10.3 8.8 2.0 1.7 21.2 21.3 0.6 0.5Bajaj Auto Neutral 1,858 - 53,761 21,121 23,642 18.4 18.5 108.7 122.6 17.1 15.2 7.1 5.7 46.2 41.6 2.2 1.9
Bharat Forge Buy 267 324 6,207 6,754 7,565 15.5 15.7 18.8 23.2 14.2 11.5 2.5 2.1 18.5 19.7 1.1 0.9
Bosch India* Neutral 8,850 - 27,787 8,776 10,276 16.6 18.0 331.9 417.7 26.7 21.2 5.0 4.1 18.7 19.5 2.8 2.4
CEAT Buy 108 163 369 4,989 5,634 8.2 8.5 27.1 40.8 4.0 2.6 0.5 0.4 13.2 17.2 0.3 0.2
Exide Industries Accumulate 140 155 11,921 6,229 7,200 14.8 15.8 7.2 9.0 19.6 15.7 3.4 2.9 18.5 19.9 1.6 1.4
FAG Bearings* Neutral 1,747 - 2,903 1,489 1,750 16.5 17.5 103.3 126.9 16.9 13.8 3.3 2.7 21.3 21.6 1.7 1.4
Hero Motocorp Neutral 1,946 - 38,852 24,743 27,996 14.8 15.2 118.2 130.4 16.5 14.9 7.1 5.6 48.3 41.9 1.3 1.1
JK Tyre Buy 119 165 490 7,517 8,329 6.6 6.6 37.2 41.3 3.2 2.9 0.6 0.5 18.8 17.8 0.3 0.3
Mahindra and Mahindra Accumulate 917 986 56,308 40,035 46,272 11.5 11.6 54.7 62.8 16.8 14.6 3.8 3.1 24.3 23.4 1.2 1.0
Maruti Neutral 1,468 - 42,412 42,019 50,246 7.3 8.6 66.1 94.4 22.2 15.6 2.5 2.2 11.9 15.1 0.8 0.7
Motherson Sumi Neutral 159 - 9,321 24,285 27,317 6.7 7.2 8.1 10.6 19.7 15.0 4.2 3.4 22.9 24.7 0.5 0.5
Subros Accumulate 31 34 187 1,230 1,378 8.8 8.6 4.5 5.7 6.9 5.5 0.7 0.6 9.8 11.8 0.4 0.4
Tata Motors Buy 269 316 71,758 195,096 219,428 12.8 13.0 39.0 44.9 6.9 6.0 2.0 1.5 32.6 28.8 0.4 0.4
TVS Motor Buy 39 45 1,831 7,466 8,290 6.2 6.3 4.8 5.6 8.1 6.9 1.4 1.2 18.2 18.7 0.2 0.2
Capital Goods
ABB* Sell 726 593 15,375 8,760 10,023 6.2 8.7 14.5 24.7 50.2 29.4 5.5 4.8 11.6 17.6 1.7 1.5BGR Energy Neutral 268 - 1,937 3,669 4,561 11.0 11.0 24.7 29.6 10.9 9.1 1.6 1.5 15.3 16.7 1.0 1.0
BHEL Neutral 236 - 57,861 47,801 43,757 18.5 18.0 24.6 21.8 9.6 10.8 2.9 2.5 33.5 24.5 1.0 1.2
Blue Star Buy 192 249 1,728 2,763 2,948 3.2 5.6 3.5 9.1 55.6 21.1 4.2 3.6 7.7 18.4 0.8 0.7
Crompton Greaves Buy 114 145 7,281 12,370 14,277 5.2 7.3 4.0 7.8 28.4 14.6 1.9 1.8 6.9 12.6 0.7 0.6
Jyoti Structures Buy 44 54 364 2,622 2,744 10.7 10.5 9.6 12.2 4.6 3.6 0.5 0.4 10.8 12.3 0.4 0.3
KEC International Buy 63 73 1,608 6,858 7,431 7.1 7.5 8.3 9.8 7.5 6.4 1.3 1.1 25.1 24.0 0.4 0.3
LMW Reduce 2,116 1,992 2,384 2,369 2,727 11.7 11.7 143.4 166.0 14.8 12.8 2.5 2.3 17.4 18.4 0.5 0.4
Thermax Neutral 590 - 7,031 5,514 5,813 9.3 10.2 28.1 31.2 21.0 18.9 3.8 3.3 19.2 18.5 1.1 1.0
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Company Name Reco CMP Target Mkt Cap Sales ( Čcr ) OPM(%) EPS (Č) PER(x) P/BV(x) RoE(%) EV/Sales(x)
( Č ) Price ( Č) ( Č cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
Cement
ACC Neutral 1,470 - 27,603 11,085 12,415 21.6 21.4 79.4 83.1 18.5 17.7 3.6 3.2 20.1 19.2 2.1 1.8
Ambuja Cements Neutral 218 - 33,566 10,272 11,884 26.4 26.1 11.5 12.9 19.0 16.9 4.2 3.7 20.8 21.1 2.7 2.2
India Cements Neutral 93 - 2,851 4,354 4,929 18.6 18.7 9.8 12.3 9.4 7.6 0.8 0.8 8.6 10.2 1.1 1.0
J K Lakshmi Cements Buy 127 143 1,553 2,082 2,423 22.9 23.1 20.8 22.5 6.1 5.7 1.1 0.9 18.4 17.4 0.9 1.1
Madras Cements Neutral 218 - 5,188 3,608 3,928 27.6 27.0 15.7 18.3 13.9 11.9 2.2 1.9 16.9 17.0 2.0 1.7
Shree Cements^ Neutral 4,392 - 15,299 5,701 6,210 29.7 28.1 240.7 260.7 18.2 16.8 4.4 3.6 27.1 23.6 2.0 1.6
UltraTech Cement Neutral 2,023 - 55,460 21,368 24,043 22.5 23.5 103.5 121.4 19.5 16.7 3.7 3.1 20.2 20.1 2.5 2.4Construction
Ashoka Buildcon Buy 219 304 1,152 2,034 2,315 22.4 22.4 27.1 31.7 8.1 6.9 1.0 0.9 13.1 13.4 1.8 2.1
Consolidated Co Neutral 13 - 241 2,262 2,522 6.7 7.5 1.5 2.7 8.8 4.9 0.4 0.4 4.4 7.5 0.4 0.4
Hind. Const. Neutral 17 - 1,052 4,239 4,522 9.9 11.2 (2.3) (1.0) (7.7) (18.0) 1.0 1.1 (11.4) (5.6) 1.2 1.2
IRB Infra Buy 126 164 4,181 3,843 4,212 43.1 43.6 16.8 17.8 7.5 7.1 1.3 1.1 18.3 17.0 3.2 3.4
ITNL Buy 189 232 3,676 6,840 7,767 26.4 26.1 24.4 30.3 7.7 6.3 1.2 1.0 16.0 16.2 2.7 2.9
IVRCL Infra Buy 43 51 1,333 5,510 6,722 8.8 9.0 2.5 4.6 17.2 9.5 0.6 0.5 3.4 5.8 0.7 0.7
Jaiprakash Asso. Neutral 94 - 19,914 15,259 17,502 25.7 24.7 4.0 4.8 23.4 19.6 1.8 1.7 8.5 9.3 2.6 2.2
Larsen & Toubro Neutral 1,669 - 102,414 60,556 69,167 11.2 11.6 73.8 85.5 22.6 19.5 3.6 3.2 13.5 14.1 1.9 1.6
Madhucon Proj Buy 37 56 270 2,206 2,502 10.7 10.7 4.6 4.7 7.9 7.8 0.4 0.4 5.2 5.0 0.7 0.7
Nagarjuna Const. Neutral 45 - 1,166 5,804 6,513 8.0 8.6 3.0 3.5 14.9 13.0 0.5 0.5 3.2 3.6 0.6 0.7
Patel Engg. Neutral 79 - 551 3,609 3,836 13.1 13.1 14.0 14.6 5.6 5.4 0.3 0.3 6.3 6.1 1.0 1.0
Punj Lloyd Neutral 54 - 1,778 11,892 13,116 8.9 8.9 1.7 3.1 31.6 17.3 0.6 0.6 1.9 3.4 0.6 0.5
Sadbhav Engg. Buy 145 182 2,181 2,506 3,147 10.3 10.7 7.5 10.4 19.2 13.9 2.4 2.1 13.5 16.0 1.0 0.9
Simplex Infra Buy 203 265 1,003 6,732 7,837 8.1 8.4 23.4 29.4 8.7 6.9 0.8 0.7 9.2 10.6 0.5 0.5
Financials Allahabad Bank Neutral 142 - 7,123 6,944 7,884 3.0 3.1 35.5 37.0 4.0 3.9 0.7 0.6 17.2 15.7 - -
Andhra Bank Reduce 107 97 5,960 4,929 5,633 3.1 3.1 23.7 24.5 4.5 4.3 0.7 0.7 16.6 15.3 - -
Axis Bank Buy 1,233 1,476 52,612 15,686 18,687 3.1 3.2 116.8 138.0 10.6 8.9 2.0 1.7 20.0 20.2 - -
Bank of Baroda Accumulate 779 817 30,509 15,436 18,208 2.5 2.6 111.8 137.4 7.0 5.7 1.1 0.9 15.8 17.0 - -
Bank of India Neutral 288 - 16,511 12,491 14,883 2.2 2.4 43.8 63.7 6.6 4.5 0.9 0.7 12.1 15.8 - -
Bank of Maharashtra Neutral 54 - 3,160 3,563 3,876 3.1 3.1 9.7 12.0 5.5 4.5 0.8 0.7 14.6 16.1 - -
Canara Bank Accumulate 436 449 19,293 10,905 12,783 2.1 2.2 74.9 85.1 5.8 5.1 0.9 0.8 15.1 15.3 - -
Central Bank Neutral 75 - 5,514 7,095 8,102 2.5 2.7 15.6 21.0 4.8 3.6 0.8 0.7 12.2 14.7 - -
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Company Name Reco CMP Target Mkt Cap Sales ( Čcr ) OPM(%) EPS (Č) PER(x) P/BV(x) RoE(%) EV/Sales(x)
( Č ) Price ( Č) ( Č cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
Financials
Corporation Bank Accumulate 404 447 5,988 4,886 5,669 2.1 2.2 101.3 101.8 4.0 4.0 0.7 0.6 17.0 15.1 - -
Dena Bank Neutral 114 - 3,987 3,147 3,495 2.8 2.9 24.8 24.4 4.6 4.7 0.8 0.7 18.7 15.9 - -
Federal Bank Neutral 482 - 8,236 2,617 2,968 3.3 3.2 45.9 51.7 10.5 9.3 1.3 1.2 13.1 13.3 - -
HDFC Neutral 797 - 122,847 7,336 8,802 3.5 3.5 31.5 37.8 25.3 21.1 5.1 4.5 34.8 32.1 - -
HDFC Bank Neutral 640 - 151,306 21,696 26,811 4.4 4.5 28.7 36.0 22.3 17.8 4.3 3.6 20.7 22.0 - -
ICICI Bank Buy 1,092 1,270 125,562 22,271 26,690 3.0 3.0 69.2 83.1 15.8 13.2 1.9 1.8 14.2 15.7 - -
IDBI Bank Accumulate 104 103 13,251 7,684 9,264 1.8 2.1 15.6 22.0 6.7 4.7 0.7 0.7 10.9 13.9 - -Indian Bank Accumulate 173 181 7,435 5,874 6,551 3.2 3.2 40.6 41.8 4.3 4.1 0.7 0.6 18.1 16.4 - -
IOB Neutral 75 - 6,001 7,050 8,313 2.3 2.5 12.3 19.9 6.2 3.8 0.6 0.5 8.8 13.1 - -
J & K Bank Neutral 1,335 - 6,473 2,762 2,885 3.6 3.6 226.7 193.0 5.9 6.9 1.3 1.2 24.4 17.7 - -
LIC Housing Finance Buy 255 298 12,892 1,799 2,255 2.3 2.4 20.3 27.3 12.6 9.4 2.0 1.7 16.9 19.7 - -
Oriental Bank Neutral 328 - 9,576 6,277 7,090 2.6 2.7 60.5 65.1 5.4 5.0 0.8 0.7 15.0 14.4 - -
Punjab Natl.Bank Accumulate 777 819 26,354 19,652 22,601 3.2 3.3 135.0 164.3 5.8 4.7 1.0 0.8 16.3 17.3 - -
South Ind.Bank Accumulate 23 25 3,052 1,556 1,750 2.8 2.7 3.5 3.9 6.6 5.9 1.1 1.0 19.1 16.9 - -
St Bk of India Accumulate 2,214 2,353 148,593 63,806 73,435 3.5 3.6 225.7 258.4 9.8 8.6 1.7 1.4 17.7 17.8 - -
Syndicate Bank Neutral 121 - 7,302 6,756 7,783 3.0 3.0 26.3 27.1 4.6 4.5 0.8 0.7 18.3 16.6 - -
UCO Bank Neutral 74 - 4,945 5,411 6,124 2.4 2.5 17.0 16.5 4.4 4.5 0.9 0.8 16.7 14.4 - -
Union Bank Accumulate 232 235 12,773 9,912 11,536 2.8 2.9 40.4 46.7 5.7 5.0 0.9 0.8 16.1 16.4 - -
United Bank Accumulate 66 74 2,372 3,572 4,041 2.8 2.9 17.2 22.1 3.8 3.0 0.5 0.5 14.2 16.2 - -
Vijaya Bank Neutral 55 - 2,723 2,490 2,881 2.1 2.2 9.2 11.4 6.0 4.8 0.7 0.7 11.5 13.0 - -
Yes Bank Buy 420 492 14,962 3,270 4,240 2.8 3.0 34.5 42.2 12.2 10.0 2.6 2.1 23.5 23.5 - -
FMCG
Asian Paints Neutral 4,110 - 39,423 11,198 13,184 16.2 16.2 123.7 146.4 33.2 28.1 11.3 8.9 38.1 35.4 3.3 2.8Britannia Buy 470 584 5,619 5,835 6,824 5.7 6.0 20.7 25.4 22.7 18.5 9.0 6.9 43.1 41.9 0.9 0.7
Colgate Neutral 1,301 - 17,696 3,018 3,429 20.9 22.2 35.7 42.3 36.5 30.7 33.7 25.1 101.0 93.5 5.6 4.9
Dabur India Neutral 128 - 22,370 6,124 7,101 17.0 16.8 4.5 5.2 28.7 24.5 11.8 9.4 43.2 41.5 3.6 3.0
GlaxoSmith Con* Neutral 3,056 - 12,852 3,124 3,663 17.1 17.6 104.5 123.8 29.3 24.7 9.1 7.3 34.4 32.8 3.8 3.2
Godrej Consumer Neutral 698 - 23,760 6,097 7,233 18.4 18.6 21.9 26.5 31.9 26.4 7.1 5.9 25.5 25.4 4.2 3.5
HUL Neutral 534 - 115,533 25,350 28,974 13.3 13.5 14.7 17.1 36.3 31.3 28.7 20.3 84.5 75.8 4.4 3.8
ITC Neutral 290 - 227,873 29,409 34,060 35.7 36.1 9.3 10.9 31.1 26.5 10.3 8.6 35.8 35.3 7.3 6.2
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Company Name Reco CMP Target Mkt Cap Sales ( Čcr ) OPM(%) EPS (Č) PER(x) P/BV(x) RoE(%) EV/Sales(x)
( Č ) Price ( Č) ( Č cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
FMCG
Marico Neutral 206 - 13,255 4,840 5,643 13.1 13.1 6.8 8.5 30.3 24.3 8.4 6.4 31.4 29.7 2.8 2.3
Nestle* Neutral 4,862 - 46,881 8,610 10,174 20.9 21.2 114.8 139.8 42.4 34.8 25.6 17.8 71.2 60.3 5.4 4.5
Tata Global Neutral 160 - 9,867 7,207 7,927 9.7 10.0 6.6 7.8 24.1 20.4 2.4 2.3 8.6 9.5 1.3 1.1
IT
HCL Tech^ Accumulate 617 648 42,821 24,214 26,772 19.5 18.1 44.0 48.0 14.0 12.8 3.3 2.8 24.0 22.0 1.7 1.5
Hexaware* Buy 116 135 3,426 1,944 2,159 21.8 21.1 11.4 12.2 10.2 9.5 2.6 2.2 26.4 24.1 1.4 1.2
Infosys Accumulate 2,399 2,573 137,770 39,174 41,580 29.5 30.4 159.2 171.6 15.1 14.0 3.6 3.2 24.1 23.1 2.9 2.7Infotech Enterprises Neutral 195 - 2,170 1,886 2,032 17.9 17.3 18.7 20.2 10.4 9.7 1.6 1.4 14.9 14.0 0.8 0.7
KPIT Cummins Accumulate 123 132 2,191 2,195 2,317 15.5 15.0 10.7 12.1 11.5 10.2 2.4 2.0 21.0 19.8 1.0 0.9
Mahindra Satyam Accumulate 111 115 13,022 7,597 8,141 20.0 18.8 9.7 10.4 11.5 10.6 3.2 2.4 27.5 22.9 1.3 1.1
Mindtree Accumulate 688 747 2,818 2,324 2,437 20.0 17.7 73.3 74.7 9.4 9.2 2.2 1.8 24.1 19.7 0.9 0.8
Mphasis& Neutral 396 - 8,320 5,700 5,993 18.0 16.9 37.0 37.3 10.7 10.6 1.5 1.3 14.3 12.6 1.0 0.8
NIIT Accumulate 34 36 554 1,034 1,146 9.9 11.0 5.2 6.4 6.4 5.2 0.8 0.8 12.8 14.3 0.4 0.3
Persistent Neutral 483 - 1,934 1,261 1,352 26.4 24.7 48.2 54.0 10.0 9.0 1.9 1.6 19.0 17.9 1.2 1.0
TCS Accumulate 1,329 1,410 260,076 61,053 67,313 28.7 29.1 69.7 76.2 19.1 17.4 6.2 5.1 32.6 29.1 4.1 3.6
Tech Mahindra Accumulate 968 1,046 12,352 6,603 7,196 18.2 17.1 92.7 99.6 10.4 9.7 2.5 2.0 23.6 20.5 1.9 1.7
Wipro Buy 368 421 90,485 43,219 47,241 20.0 20.0 26.1 28.1 14.1 13.1 2.7 2.3 19.3 17.9 1.7 1.5
Media
D B Corp Buy 219 259 4,015 1,581 1,784 23.3 25.0 11.6 14.4 18.9 15.2 3.7 3.2 21.0 22.3 2.3 2.0
HT Media Accumulate 98 113 2,302 2,111 2,272 15.0 15.2 7.4 8.3 13.3 11.9 1.4 1.3 11.3 11.4 0.8 0.7
Jagran Prakashan Buy 104 117 3,278 1,503 1,681 23.1 23.1 6.4 7.3 16.2 14.3 4.0 3.6 25.8 26.5 2.3 2.0
PVR Neutral 235 - 610 625 732 17.4 17.1 13.3 15.6 17.6 15.0 1.9 1.7 13.2 13.8 1.4 1.1
Sun TV Network Neutral 342 - 13,486 1,981 2,239 77.0 76.7 18.6 21.3 18.4 16.1 4.6 4.1 27.1 27.5 6.3 5.4Metals & Mining
Bhushan Steel Neutral 490 - 10,410 11,979 14,584 31.6 31.0 49.2 61.4 10.0 8.0 1.3 1.1 14.1 15.2 2.9 2.4
Coal India Accumulate 348 385 219,904 69,808 75,550 27.4 27.4 26.0 28.3 13.4 12.3 3.9 3.1 32.5 28.1 2.2 1.9
Electrosteel Castings Accumulate 28 29 979 1,984 2,074 10.6 11.6 0.8 2.0 33.9 14.0 0.5 0.2 1.7 4.1 0.7 0.6
Hind. Zinc Accumulate 139 145 58,795 12,446 13,538 52.3 52.9 15.0 16.4 9.3 8.5 1.8 1.5 21.4 19.7 2.8 2.1
Hindalco Neutral 114 - 21,769 79,148 89,258 9.4 9.0 15.0 15.6 7.6 7.3 0.6 0.6 8.8 8.4 0.7 0.6
JSW Steel Neutral 753 - 16,792 39,586 41,459 17.6 17.0 78.7 90.1 9.6 8.4 0.9 0.9 10.2 10.7 0.8 0.8
MOIL Accumulate 249 271 4,191 918 993 50.7 50.9 24.5 26.1 10.2 9.6 1.6 1.4 16.0 15.5 2.2 1.9
Monnet Ispat Buy 292 379 1,878 2,511 3,303 23.8 26.0 46.3 57.3 6.3 5.1 0.7 0.6 12.4 13.7 1.7 1.2
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Company Name Reco CMP Target Mkt Cap Sales ( Čcr ) OPM(%) EPS (Č) PER(x) P/BV(x) RoE(%) EV/Sales(x)
( Č ) Price ( Č) ( Č cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
Metals & Mining
Nalco Reduce 46 44 11,842 6,898 7,841 9.9 14.7 2.0 3.2 23.2 14.4 1.0 1.0 4.3 6.8 1.3 1.2
NMDC Accumulate 182 198 72,277 11,209 12,525 78.4 78.3 18.5 20.6 9.8 8.9 2.4 2.0 27.0 24.6 4.4 3.7
SAIL Neutral 83 - 34,428 47,252 60,351 14.2 14.8 9.6 11.7 8.7 7.1 0.8 0.7 9.4 10.6 1.2 1.0
Sesa Goa Neutral 176 - 15,301 4,551 6,640 32.8 34.4 33.7 39.3 5.2 4.5 0.9 0.8 18.3 18.3 4.0 2.7
Sterlite Inds Accumulate 103 110 34,447 43,185 45,442 23.3 23.7 16.8 17.9 6.1 5.7 0.7 0.6 11.6 11.2 0.8 0.7
Tata Steel Buy 402 481 39,038 145,799 150,431 10.3 11.2 48.6 63.3 8.3 6.4 0.8 0.8 10.5 12.4 0.5 0.5
Sarda Buy 141 153 506 1,442 1,494 17.6 17.3 27.2 28.7 5.2 4.9 0.6 0.5 11.5 11.0 0.7 0.6Prakash Industries Buy 52 73 696 2,694 2,906 14.6 16.6 16.4 20.8 3.2 2.5 0.3 0.3 11.4 12.8 0.5 0.4
Godawari Power andIspat
Buy 122 143 387 2,342 2,470 13.7 15.3 27.7 33.8 4.4 3.6 0.4 0.4 10.9 11.4 0.7 0.6
Oil & Gas
Cairn India Accumulate 331 382 63,279 17,567 17,643 76.2 72.3 61.1 56.8 5.4 5.8 1.1 1.0 22.0 17.5 2.8 2.4
GAIL Neutral 366 - 46,388 46,652 54,142 15.7 15.7 34.0 35.3 10.8 10.4 1.9 1.6 18.5 16.8 0.7 0.6
ONGC Buy 267 312 228,089 147,139 154,821 33.9 33.7 30.7 32.3 8.7 8.3 1.5 1.4 18.3 17.2 1.3 1.2
Reliance Industries Neutral 800 - 262,112 362,700 380,031 7.9 8.0 60.0 63.3 13.3 12.7 1.3 1.2 11.1 10.6 0.7 0.7
Gujarat Gas* Neutral 300 - 3,850 3,128 3,707 13.2 11.7 22.8 23.5 13.2 12.8 4.0 3.5 33.2 29.2 1.1 0.9
Indraprastha Gas Neutral 265 - 3,707 3,040 3,135 24.3 26.7 24.8 27.9 10.7 9.5 2.5 2.1 25.5 23.6 1.2 1.0
Petronet LNG Accumulate 171 183 12,814 30,077 33,570 6.6 6.3 15.1 15.3 11.3 11.2 2.9 2.4 28.4 23.1 0.5 0.4
Gujarat State PetronetLtd.
Neutral 75 - 4,203 1,041 939 91.8 91.9 8.5 7.4 8.8 10.1 1.5 1.3 18.1 14.0 4.9 5.4
Pharmaceuticals
Alembic Pharma Buy 68 91 1,287 1,624 1,855 14.2 15.6 6.6 9.1 10.3 7.5 2.6 2.0 27.9 29.9 0.9 0.8
Aurobindo Pharma #VALUE! 176 5,116 5,243 5,767 14.6 14.6 11.8 12.6 14.9 14.0 1.9 1.6 17.9 16.4 1.4 1.3
Aventis* Neutral 2,228 - 5,131 1,482 1,682 15.5 15.5 95.1 104.4 23.4 21.3 4.2 3.2 18.6 17.0 3.3 2.8Cadila Healthcare Accumulate 859 953 17,592 6,148 7,386 18.6 19.6 36.0 46.1 23.9 18.6 5.6 4.5 25.8 26.8 3.1 2.5
Cipla Accumulate 396 419 31,764 8,151 9,130 25.0 24.0 19.5 20.9 20.3 18.9 3.5 3.0 18.8 17.2 3.5 3.0
Dr Reddy's Neutral 1,794 - 30,458 10,696 11,662 20.7 21.0 83.7 92.9 21.4 19.3 4.4 3.7 22.4 20.8 3.1 2.7
Dishman Pharma Buy 100 145 806 1,280 1,536 20.2 20.2 10.4 14.5 9.6 6.9 0.8 0.7 8.7 11.0 1.3 1.1
GSK Pharma* Neutral 1,998 - 16,926 2,651 2,993 31.7 31.2 76.0 82.4 26.3 24.3 7.6 6.8 20.1 26.3 5.6 4.8
Indoco Remedies Buy 65 89 601 685 837 15.2 15.2 7.4 8.9 8.8 7.3 1.4 1.2 16.4 17.0 1.0 0.9
Ipca labs Neutral 459 - 5,786 2,850 3,474 21.0 21.0 29.9 37.3 15.3 12.3 3.7 2.9 26.7 26.4 2.2 1.8
Lupin Accumulate 588 652 26,304 8,426 10,082 19.7 20.0 26.3 31.3 22.4 18.8 5.2 4.2 26.0 24.7 3.2 2.6
Orchid Chemicals Neutral 106 - 749 1,667 1,835 13.9 13.9 11.4 13.3 9.3 8.0 0.6 0.6 6.6 7.3 0.9 0.8
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Company Name Reco CMP Target Mkt Cap Sales ( Čcr ) OPM(%) EPS (Č) PER(x) P/BV(x) RoE(%) EV/Sales(x)
( Č ) Price ( Č) ( Č cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
Pharmaceuticals
Ranbaxy* Neutral 550 - 23,251 12,046 11,980 18.0 15.8 31.3 29.8 17.6 18.5 6.0 4.8 39.1 28.9 1.9 1.9
Sun Pharma Neutral 701 - 72,529 9,752 12,134 41.6 41.6 26.0 28.2 27.0 24.9 5.1 4.3 20.3 18.8 6.7 5.2
Power
CESC Neutral 276 - 3,451 5,218 5,644 24.2 23.8 44.6 47.6 6.2 5.8 0.7 0.6 11.0 10.6 1.5 1.5
GIPCL Accumulate 71 77 1,072 1,557 1,573 29.3 28.7 10.8 11.0 6.6 6.4 0.7 0.6 10.8 10.2 1.1 1.0
NTPC Neutral 170 - 140,008 74,111 85,789 22.7 23.1 12.1 13.7 14.0 12.4 1.7 1.6 12.6 13.2 2.5 2.3
Real Estate Anant Raj Neutral 89 - 2,640 657 875 52.0 56.1 8.4 12.7 10.6 7.0 0.7 0.6 6.3 8.9 4.8 3.6
DLF Neutral 211 - 35,832 9,878 12,033 44.7 46.1 9.6 13.4 22.0 15.7 1.4 1.3 6.4 8.7 6.0 5.0
HDIL Buy 105 115 4,410 2,441 3,344 55.1 48.2 22.7 26.6 4.6 4.0 0.4 0.4 8.8 9.4 3.6 2.7
MLIFE Neutral 411 - 1,679 813 901 26.2 26.6 32.0 37.1 12.9 11.1 1.3 1.2 10.4 11.0 2.4 2.1
Telecom
Bharti Airtel Neutral 271 - 102,951 79,147 86,745 31.1 32.5 9.9 15.1 27.3 18.0 1.9 1.7 7.0 9.7 2.0 1.7
Idea Cellular Neutral 87 - 28,955 22,234 24,161 26.9 27.7 3.3 4.9 26.4 17.7 2.0 1.8 7.7 10.3 1.7 1.5
Rcom Neutral 58 - 11,930 20,650 20,935 32.3 33.0 4.2 5.8 13.7 10.1 0.3 0.3 2.3 3.1 2.2 2.0
zOthers
Abbott India Neutral 1,466 - 3,115 1,602 1,833 10.4 11.8 54.7 71.7 26.8 20.4 5.1 4.3 20.0 22.7 1.7 1.4
Bajaj Electricals Accumulate 199 217 1,981 3,497 3,968 6.6 7.6 9.8 15.5 20.3 12.8 2.6 2.2 12.7 17.4 0.6 0.5
Cera Sanitaryware Accumulate 377 411 477 427 528 15.7 14.6 30.0 34.0 12.6 11.1 2.8 2.3 24.6 22.5 1.2 1.0
Cravatex Buy 456 682 118 289 340 5.2 5.9 41.0 57.0 11.1 8.0 2.8 2.1 25.2 26.5 0.5 0.4
CRISIL Neutral 930 - 6,533 982 1,136 34.3 34.3 34.3 40.0 27.1 23.3 12.3 9.8 50.9 46.9 6.3 5.2
Finolex Cables Buy 44 61 668 2,334 2,687 6.2 6.5 8.0 10.0 5.5 4.4 0.7 0.6 13.0 14.9 0.2 0.2
Force Motors Accumulate 488 537 636 2,318 2,700 5.0 5.7 45.0 67.0 10.9 7.3 0.5 0.5 5.0 7.0 0.2 0.2Goodyear India Neutral 325 - 750 1,543 1,654 6.5 7.3 24.8 31.1 13.1 10.5 2.1 1.9 17.1 19.0 0.3 0.2
Disa India Buy 2,719 3,353 411 176 203 22.7 22.6 182.5 209.6 14.9 13.0 7.7 6.1 51.8 47.1 2.2 1.8
Greenply Industries Neutral 284 - 686 1,925 2,235 10.6 10.9 29.6 44.1 9.6 6.5 1.6 1.3 16.8 21.0 0.7 0.5
Hitachi Neutral 136 - 313 868 977 3.9 6.6 2.7 10.9 49.7 12.5 1.8 1.6 3.7 13.6 0.4 0.4
Honeywell Automation* Accumulate 2,602 2,842 2,300 1,745 1,993 4.0 5.3 59.5 90.4 43.7 28.8 3.3 2.9 8.1 11.3 1.3 1.1
Styrolution ABS India* Accumulate 647 744 1,138 1,059 1,116 8.5 9.5 36.0 42.0 18.0 15.4 2.6 2.3 15.4 16.0 1.1 1.0
ITD Cementation Neutral 250 - 288 1,323 1,455 12.4 12.4 23.2 27.7 10.8 9.0 0.7 0.7 6.8 7.6 0.7 0.6
Jyothy Laboratories Neutral 178 - 2,871 1,228 1,443 9.0 10.9 3.9 6.4 45.8 27.9 4.5 4.2 10.1 15.6 2.8 2.4
MCX Neutral 1,474 - 7,517 553 624 65.3 66.3 62.5 72.0 23.6 20.5 6.5 5.6 27.5 27.4 10.1 8.4
MRF Buy 10,280 12,884 4,360 11,804 12,727 10.4 10.5 1,289.9 1,431.3 8.0 7.2 1.5 1.3 21.3 19.4 0.5 0.5
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Company Name Reco CMP Target Mkt Cap Sales ( Čcr ) OPM(%) EPS (Č) PER(x) P/BV(x) RoE(%) EV/Sales(x)
( Č ) Price ( Č) ( Č cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
zOthers
Page Industries Neutral 3,331 - 3,715 887 1,108 18.3 18.6 95.0 120.9 35.1 27.6 18.3 14.9 57.4 59.5 4.2 3.4
Relaxo Footwears Accumulate 814 933 977 1,019 1,208 11.0 12.5 47.0 66.7 17.3 12.2 4.3 3.2 28.2 30.1 1.2 1.0
Sintex Industries Buy 66 79 1,803 4,751 5,189 16.3 16.6 13.6 15.8 4.8 4.2 0.6 0.6 12.9 13.2 0.7 0.6
Siyaram Silk Mills Buy 309 366 289 1,043 1,149 12.3 12.9 65.7 73.3 4.7 4.2 0.9 0.8 21.0 19.6 0.5 0.5
S. Kumars Nationwide Neutral 13 - 400 7,134 7,985 19.7 19.4 12.2 14.1 1.1 1.0 0.1 0.1 11.3 11.5 0.6 0.6
SpiceJet Buy 36 43 1,746 5,720 6,599 5.3 6.8 3.6 5.4 10.0 6.7 14.5 4.6 - - 0.4 0.3
TAJ GVK Buy 73 108 459 300 319 35.8 36.2 7.9 9.1 9.3 8.1 1.2 1.1 13.9 14.4 1.8 1.6Tata Sponge Iron Buy 322 384 496 750 803 18.6 18.4 65.4 69.1 4.9 4.7 0.8 0.7 16.5 15.3 0.3 0.2
TVS Srichakra Accumulate 300 335 230 1,476 1,643 7.0 8.2 32.6 55.9 9.2 5.4 1.5 1.2 16.8 24.8 0.4 0.3
United Spirits Neutral 1,300 - 17,005 10,289 11,421 13.5 14.3 31.0 42.9 41.9 30.3 3.3 3.0 8.1 10.3 2.2 2.0
Vesuvius India Neutral 347 - 704 560 611 16.1 17.0 24.7 28.8 14.1 12.1 2.1 1.8 15.8 16.2 1.1 1.0
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on November 07, 2012
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Market Outlook November 08, 2012