Market Outlook 22-10-12

Market Outlook
October 22, 2012
Dealers Diary
The Indian markets are expected to open flat with a negative bias tracking negative
to flat opening in most of the Asian markets.
Domestic Indices
BSE Sensex
(0.6) (109.6) 18,682
The U.S. markets closed sharply lower on Friday as traders reacted negatively to
the quarterly results from Microsoft, General Electric and McDonald's. The markets
experienced broad based selling pressure, offsetting the strength that was seen
earlier in the week. Adding to the negative sentiment, the National Association of
Realtor's (NAR) released a report showing a drop in existing home sales in
September, with sales pulling back off the two-year high set in the previous
month. NAR said existing home sales fell 1.7% to a seasonally adjusted annual
rate of 4.75mn in September from an upwardly revised 4.83mn in August.
Nifty
(0.6)
(34.5)
5,684
MID CAP
(0.5)
(35.2)
6,672
SMALL CAP
(0.3)
(24.1)
7,170
BSE HC
(0.5)
(36.0)
7,521
BSE PSU
(0.7)
(54.2)
7,375
BANKEX
(0.9) (114.9) 13,193
AUTO
(0.9)
METAL
(1.3) (138.6) 10,351
Meanwhile the Indian markets fell notably on Friday, hurt by weak Asian and
European cues and announcement from French President that the EU meeting in
Brussels did not discuss a potential aid request from Spain. Looking ahead,
earnings news is likely to remain in focus throughout the week. Traders are also
likely to keep a close eye on the Federal Reserve, with the central bank due to hold
a two-day monetary policy meeting.
OIL & GAS
(0.8)
(65.5)
8,437
BSE IT
(0.3)
(15.4)
5,700
Chg (%)
(Pts)
(Close)
Markets Today
Global Indices
(2.2)
(67.2)
3,006
FTSE
(0.4)
(20.9)
5,896
0.2
19.8
9,003
Indices
S2
S1
PIVOT
R1
R2
SENSEX
NIFTY
18,530
5,634
18,606
5,659
18,688
5,685
18,764
5,711
18,846
5,737
Refer detailed news analysis on the following page
Net Inflows (October 18, 2012)

` cr
FII
MFs
Purch
2,427
272
Sales
2,299
441
Net
128
(169)
MTD
9,752
(1,649)
YTD
58,732
(10,384)
FII Derivatives (October 19, 2012)

` cr
Index Futures
Stock Futures
Purch
1,589
4,868
Sales
1,872
4,894
Net
(283)
(26)
Open Interest
15,622
31,402
Gainers / Losers
Gainers
Company
Losers
Price (`)
chg (%)
CRISIL
969
3.4
Exide Industries
Gitanjali Gems
394
3.3
Indian Hotels
CESC
339
2.6
Jet Air India
Emami
530
2.4
Jain Irrigation
GMDC
214
2.4
Reliance Capital
www.angelbroking.com
Company
Price (`)
chg (%)
148
(8.8)
66
(5.5)
355
(4.7)
71
(3.8)
440
(3.2)
(93.3) 10,249
NASDAQ
Hang Seng
Airtel, Vodafone, Idea, Telenor submit applications for 2G auction; RCom,

Sistema, Reliance Infotel abstain
Vedanta to resume operations at Odisha refinery
Bosch to expand vehicle servicing centers to 3,000 in three years
2QFY2013 Result Review: TCS, ITC, Ultratech, BJAUT, Exide Industries,
Petronet LNG, Indian Bank, Federal Bank, South Indian Bank, Blue Star,
Alembic Pharma, Force Motor, Tata Sponge Iron.
2QFY2013 Result Preview: HDFC, L&T, Cairn India, Bank of Baroda, Idea,
Syndicate Bank
(Close)
(1.5) (205.4) 13,344
The trend deciding level for the day is 18,688 / 5,685 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 18,764 18,846 / 5,711 5,737 levels. However, if NIFTY trades below
18,688 / 5,685 levels for the first half-an-hour of trade then it may correct up to
18,606 18,530 / 5,659 5,634 levels.
(Pts)
Dow Jones
Nikkei
News Analysis
Chg (%)
0.2
33.1 21,552
Straits Times
(0.4)
(11.4)
3,049
Shanghai Com
(0.2)
(3.4)
2,128
Chg (%)
(Pts)
(Close)
INFY
(1.7)
(0.8)
$43.7
WIT
(2.4)
(0.2)
$8.2
IBN
(1.6)
(0.7)
$39.4
HDB
(0.5)
(0.2)
$36.9
Indian ADRs
Advances / Declines
BSE
NSE
Advances
1,275
989
Declines
1,586
521
136
84
Unchanged
Volumes (` cr)
BSE
2,190
NSE
10,609
Market Outlook
October 22, 2012
Airtel, Vodafone, Idea, Telenor submit applications for 2G

auction; RCom, Sistema, Reliance Infotel abstain
Bharti Airtel, Vodafone, Idea Cellular and Telenor are some of the telecom
companies which on Friday submitted applications to the Department of Telecom
(DoT) for participating in the 2G auction next month, but Reliance Industries and
Russia's Sistema surprised by staying away. Videocon also submitted applications
to bid for both GSM and CDMA technologies. As per mdia reports, Vodafone has
submitted applications for 17 circles in 1800 MHz band, Bharti Airtel for six circles,
Videocon for 15 GSM and around 10 CDMA circles and Tata Teleservices for
three circles where it lost its CDMA permits.
October 19 was the last date for companies to submit their application to
participate in the auction, which is scheduled to start from November 12. DoT had
September 28 issued the notice inviting applications. The final list of bidders will
be announced November 6. This will be followed by a mock auction November 7
and 8 and thereafter the e-auction of 1800 MHz band will take place November
12. The start of e-auction of 800 MHz band will happen two days after close of the
1800 MHz band auction. The payment of the successful bid amount will have to
be done within 10 days of the close of the respective e-auctions. We maintain our
Neutral view on the overall telecom sector.
Vedanta to resume operations at Odisha refinery

Sterlite Industries associate Vedanta Aluminium Ltd (VAL) will resume operations at
its 1mn-tonne refinery at Lanjigarh in Odisha a week after it had shut down the
plant due to shortage of bauxite. Currently, Sterlite Industries owns 29.5% stake in
VAL; however, post Sterlite Industries merger with Sesa Goa, it will own 95.0%
stake in VAL. VAL has got access to 35,000 tonnes of bauxite from BALCOs
Kwardha mine in Chhattisgarh. VAL has also ensured bauxite supplies to the tune
of 90,000 tonnes from Gujarat Mineral Development Corporation (GMDC). VAL
said that with the present arrangement the company will be able to run up to
December 5 at reduced capacity utilization of 60-70%. We believe at current
aluminium prices VAL will continue to make losses at the net profit level. We
maintain our Neutral view on both Sesa Goa and Sterlite.
Bosch to expand vehicle servicing centers to 3,000 in three years

Bosch has announced that it is planning to double its centers to up to 3,000 outlets
over the next three years. Currently, Bosch operates a total of 1,500 service centers
for different types of vehicles. Of these, 500 are for passenger vehicles, while 800
are for commercial vehicles and 200 are for other types of vehicles. Last week,
Bosch automotive aftermarkets had launched 100 service centers in North India
with an aim of bridging the large gap in service network in the country. It had
opened 10 outlets in Delhi, 47 in Uttar Pradesh and 43 in Punjab, Chandigarh
and Panchkula collectively. Recently, the company also forayed into two-wheeler
servicing and has opened 11 'Express Bike Service' (EBS) outlets in Coimbatore and
Delhi. These centers will provide service to multi-brand vehicles across different
segments. We see this as a positive development for the company and is expected
to boost the sales of the automotive aftermarket segment which contributes ~20%
Market Outlook
October 22, 2012
of companys revenue. At `8,851, the stock is trading at 20.3x its CY2013E

earnings, which is in-line with its historical average of 20x. We maintain our
Neutral rating on the stock.
Result Review
TCS (CMP: `1,290 / TP: `1,410 / Upside: 9%)
TCS reported yet another set of healthy quarterly result, outperforming the streets
as well as our expectations on the revenue as well as the profit front. The most
remarkable highlight of the result was the 5.0% qoq volume growth. The dollar
revenue grew by 4.6% qoq to US$2,853mn. In INR terms, revenue came in at
`15,621cr, up 5.1% qoq. TCSs EBITDA and EBIT margins declined by 71bp and
75bp qoq to 28.4% and 26.8% (a bit lower than expectations), respectively, due
to: 1) few transformation projects getting stared which led to onsite effort shift and
one-time costs and 2) change in business mix as incremental growth came in from
ramp ups in projects from emerging markets where price points are slightly lower
from developed markets. The bottom-line of company grew by ~7% qoq to
`3,513cr, aided by forex gain of `92cr as against forex loss of `94cr in
1QFY2013.
TCS closed 11 large deals during 2QFY2013. These deals span industry segments
as well as geographies. The management sounded confident of growing higher
than the industry. The management indicated that it is on track with its guidance of
hiring 50,000 gross employees in FY2013, which gives us confidence about the
demand environment being witnessed by the company. Also, the company has set
campus hiring target of 25,000 people for FY2014, out of which ~12,000 offers
have already been given despite an uncertain environment. Over FY2012-14E, we
expect TCSs revenue to post a 12.8% (USD terms) and 17.3% (INR terms) CAGR.
We value TCS at 18.5x FY2014E EPS of `76.2 with a target price of `1,410 and
maintain our Accumulate rating on the stock.
Y/E
Sales
March
(` cr)
OPM
PAT
(%)
EPS
ROE
P/E
P/BVEV/EBITDA
EV/Sales
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E 61,053
28.7 13,638
69.7
32.6
18.5
6.0
13.7
3.9
FY2014E 67,313
29.1 14,922
76.2
29.1
16.9
4.9
12.1
3.5
ITC (CMP: `298/ TP:- /Upside: -)

ITC delivered a stellar set of numbers which was ahead of our estimates.
Topline rose by 19.6% on a yoy basis. Cigarettes business posted a 14.0% yoy
growth in net sales to `3,385cr, with the volumes remaining flat. Other FMCG
business posted a healthy 26.1% yoy growth in net sales to `1,691cr. Agri
business surprised with a remarkably good 41.1% yoy growth in net sales to
`2,024cr, aided by wheat exports. OPM margin came in at 36.5% up 121bp
on yoy basis, with cigarette business posting a healthy margin expansion.
However, margins of agri business fell on a high base. EBIT losses of other
FMCG business stood at `30cr, down from `56cr in 2QFY2012. Bottomline
rose by 21.5% yoy to `1,836cr. We maintain our neutral view on ITC due to its
rich valuations.
Market Outlook
October 22, 2012
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BVEV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E 29,513
35.4
7,254
21.2
35.6
32.1
10.6
21.2
7.5
FY2014E 33,885
35.8
8,431
18.2
35.0
27.6
8.9
18.2
6.5
Ultratech (CMP: `2,010 / TP: - / Upside: -)

UltraTech Cements (Ultraech) 2QFY2013 top-line rose by 20% yoy to `4,700,
which was inline with our estimates. The growth was driven mainly by higher
realization, as combined sales volume of domestic grey cement (incl clinker)
and white cement rose only marginally by 1.6% to 9.3mn tonne. The OPM
stood at 22% up 533bp, aided by higher realization, and was inline with
estimates. The bottom-line rose by 97% yoy to `550cr, aided by superior
operational performance. We remain Neutral on the stock.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BVEV/EBITDA EV/Tonne*
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(US $)
FY2013E 20,745
21.3
2,554
93.2
18.4
21.9
3.7
12.6
208
FY2014E 23,342
22.7
3,029
110.5
18.7
18.5
3.2
11.0
Bajaj Auto (CMP: `1,770 / TP: - / Upside: -)

Bajaj Auto (BJAUT) registered an in-line operating performance for 2QFY2013;
however, net profit was ahead of our estimates driven by higher-than-expected
other income and slightly lower tax rate. The top-line for 2QFY2013 recorded a
decline of 4.1% yoy (up 2.2% qoq) which was on the expected lines and was on
account of 9.9% yoy (2.8% qoq) decline in total volumes. While domestic volumes
(down 11% yoy) were impacted due to the slowdown in the domestic motorcycle
segment; export volumes (down 8% yoy) declined due to lower dispatches to Sri
Lanka led by hike in import duty. Net average realization though, registered an
increase of 7.1% yoy (5.1% qoq) driven by 8.7% and 4.4% yoy increase in
domestic and export realization, respectively.
On the operating front, EBITDA margin contracted 41bp yoy to 18.4% (in-line with
our estimates) mainly due to increase in other expenditure and employee expense
as a percentage of sales by 80bp and 40bp, respectively. However, raw-material
expense as a percentage of sales witnessed a decline of 80bp yoy during the
quarter. On a sequential basis, EBITDA margins improved 50bp largely due to
raw-material cost savings. Adjusted net profit, however, recorded a decline of
9.8% yoy primarily due to reduction in income tax benefits from the Pantnagar
plant (tax rate of 28.8% as against 25.7% in 2QFY12). Nonetheless, adjusted net
profit was ahead of our estimates by 10.3% driven by higher-than-expected other
income and slightly lower tax rate.
Going ahead, we expect export volumes to recover gradually led by price
rationalization in Sri Lanka and also expect domestic volumes to benefit from the
success of the new launches (Pulsar 200NS and Discover 125 ST). We broadly
retain our estimates for the company. At the CMP of `1,764, the stock is trading at
14.5x FY2014E earnings. We maintain our Neutral rating on the stock. We shall
release a detailed result update post the conference call with the management
which is scheduled today.
Market Outlook
October 22, 2012
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E 21,109
18.4
3,140
108.5
46.1
16.3
6.8
11.1
2.0
FY2014E 23,738
18.5
3,534
122.1
41.5
14.5
5.4
9.4
1.7
Exide Industries (CMP: `148 / TP: - / Upside: -)

Exide Industries (EXID) reported extremely weak bottom-line performance for
2QFY2013 which was significantly below our estimates led by sharp deterioration
in operating margins. Top-line though, registered a better-than-expected growth of
29.7% yoy (down 2.1% qoq) to `1,521cr driven by strong growth in the automotive
replacement and industrial battery segments. However, demand from the
automotive OEMs remained subdued due to slowdown in the industry. On the
operating front, EBITDA margins contracted 261bp sequentially to 12.4% against
our expectation of 15.3% on account of increase in raw-material and other
expenditure. While raw-material expenses as a percentage of sales jumped 110bp
led by INR depreciation; other expenditure as a percentage of sales increased
100bp due to higher fuel expenses. Employee cost as a percentage of sales also
grew by 50bp qoq during the quarter. As a result, net profit declined 20.9% qoq to
`120cr against our estimates of `134cr. However on a low base of last year,
operating margins improved 469bp leading to a 135.2% growth in net profit.
Going ahead, we expect the company to report improvement in its operating
performance led by pick-up in demand from the OEM segment and sustained
growth in the automotive replacement segment. Further, EXID has hiked battery
prices by 5% across the replacement segment which will benefit the operating
margins. AT `148, the stock is trading at 16.6x FY2014E earnings. We believe that
the sharp run-up in the stock price captures the expected positives and provides a
limited upside from the current levels. We maintain our Neutral rating on the
stock.
Y/E
March
Sales
OPM
PAT
EPS
ROE
P/E
P/BVEV/EBITDA
EV/Sales
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
6,229
14.8
610
7.2
18.5
20.7
3.6
11.6
1.7
FY2014E
7,200
15.8
761
9.0
19.9
16.6
3.1
9.0
1.4
Petronet LNG (CMP: `169, TP: -, Upside: -)

Petronet LNG has reported its 2QFY2013 results. Its net sales increased by 40.7%
yoy to `7,549cr driven by increase in sales realization (+39.7% to `555/mmbtu)
even though volumes were flat yoy at 135TBTU. However, the average cost also
increased by 46.9% yoy to `523/mmbtu. Further, other expenditure increased by
52.9% yoy to `80cr. Hence, the EBITDA declined by 19.3% yoy to `404cr. Other
income increased by 23.1% yoy to `25cr, while the tax rate increased to 32.3% in
2QFY2013, compared to 30.8% in 2QFY2012. Consequently, the net profit
therefore grew by 20.9% yoy to `315cr. We maintain our positive stance on the
stock and keep our rating and target price under review.
Market Outlook
October 22, 2012
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
29,145
6.6
1,065
14.2
26.9
11.9
2.9
7.2
0.5
FY2014E
33,736
6.5
1,199
16.0
24.4
10.6
2.3
5.8
0.4
Indian Bank- (CMP: `184 / TP: - / Upside: -)

During 2QFY2013, Indian Bank reported subdued earnings growth of 5.7% yoy to
`462cr, despite flat performance at the pre-provisioning profit levels, largely aided
by 8.2% and 9.6% yoy decline in provisioning and tax expenses, respectively.
Advances for the bank grew at a moderate pace of 10.8% yoy. On the liability
side, growth in deposits was relatively higher at 12.9% yoy. CASA ratio, however
declined to 28.96% compared to 29.31% in 1QFY2013. Reported NIMs for the
bank declined by 18bp sequentially to 3.12%. Non-interest income grew by 6.2%
yoy to `363cr. The banks asset quality deteriorated during 2QFY2013, with both
gross and net NPAs levels increasing on a sequential basis by 27% and 31%,
respectively. Gross and Net NPA ratio were higher on a sequential basis by 40bp
and 29bp, respectively to 2.06% and 1.33%. The banks PCR declined sequentially
by 411bp to 71%. At CMP, the stock trades at 0.7x FY2014E ABV. We maintain
our Neutral recommendation on the stock.

Y/E
Op. Inc
NIM
PAT
EPS
ABV
ROA
ROE
P/E
P/ABV
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
6,062
3.4
1,789
40.5 246.2
1.2
18.1
4.6
0.8
FY2014E
6,818
3.4
1,834
41.6 278.5
1.1
16.3
4.5
0.7
March
Federal Bank- (CMP: `482/ TP: -/ Upside: -)

Federal Bank posted net profit growth of 12.5% yoy to `215cr. The performance
on the operating income front was muted with net interest income growing by
6.6% yoy. Growth in non-interest income came in healthy at 19.2% yoy. Operating
expenses were higher by 28.5% yoy to 296cr, which lead to operating profit
decline of 3.2% yoy. However, provisioning expenses were significantly lower by
57.8% yoy, leading to a moderate bottom-line growth of 12.5% yoy. On the asset
quality front, the bank witnessed stability, with both Gross and Net NPA increasing
by marginal 1.9% and 3.7%, qoq respectively.
The banks valuations at 1.1x FY2014 ABV are higher than the 0.5-0.9x range at
which mid-size PSU banks with similar KPIs are trading. 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)
FY2013E
2,593
3.2
769
368.4
8.5
1.2
12.8
10.5
1.3
FY2014E
3,009
3.2
898
409.2
10.0
1.1
13.5
9.0
1.1
March
Market Outlook
October 22, 2012
South Indian Bank (CMP: 23/ TP: 25/ Upside: 8.3%)

For 2QFY2013, South Indian Bank (SIB) reported a muted net profit growth of
2.3% yoy (down 21.0% qoq) to `97cr, which was lower than our as well as streets
estimates on account of higher provisioning expenses due to a large government
account (NAFED, `150cr) slipping and due to employee related fraud (`32cr)
during the quarter. The bank also had to record `20cr of interest reversal during
the quarter due to which the NIMs declined sequentially by 6bp. As a result of
higher slippages, the banks gross NPA levels increased by 68.2% qoq, while net
NPA levels more than doubled sequentially during the quarter. However, the bank
is confident of nearly full recovery from NAFED (being a government account) and
also from the employee fraud (maximum loss of `10cr from `32cr as collateral
and insurance already in place). The stock has been an underperformer in the
banking sector and with expected ROAs of 1.0% for FY2014, at 1.0 FY2014
P/ABV; we believe there is room for some upside in the stock. Hence, we maintain
our Accumulate rating on the stock.
Y/E
Op. Inc
NIM
PAT
EPS
ABV
ROA
ROE
P/E
P/ABV
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
1,535
2.9
473
3.5
21.1
1.1
19.4
6.6
1.1
FY2014E
1,760
2.8
522
3.9
24.2
1.0
17.1
6.0
1.0
Blue Star (CMP: `214 / TP: `249 / Upside: 16%)

Blue Star announced a mixed set of numbers for 2QFY2013. Topline came in at
`579cr, 4.3% lower than `605cr in 2QFY2012. However, EBITDA margin
expanded by 123bps on a yoy basis from 2.3% in 2QFY2012 to 3.5% in
2QFY2013 aided by improved margins in the EMPPAC division. This led to a PAT
of `7cr for the quarter vs. a loss of `21cr in 2QFY2012. We recommend a Buy
rating on the stock with target price `249 based on a target EV/sales of 0.8x for
FY2014E.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
2,763
3.2
31
3.5
7.7
61.9
4.6
24.4
0.8
FY2014E
2,948
5.6
82
9.1
18.4
23.5
4.0
12.4
0.7
Note: Numbers are subject to change post conference call
Alembic Pharmaceuticals (CMP: `70/ TP: `91/ Upside: 30%)

Alembic Pharmaceuticals (Alembic)s 2QFY2013 results have come above our
expectations on the operating front. On the sales front, the company grossed sales
of `406cr, registering a revenue growth of 2.2% yoy, just in line with expectations.
Alembic reported revenue growth of 2.2% yoy to `406cr, mainly driven by the
domestic formulation business which grew by 11.9% yoy. However, the exports
segment de-grew by 18.5% yoy, impacted by de-growth of formulation exports
(which de-grew by 28.4% yoy). API exports on the other hand de-grew by 4.7%.
The exports segments, namely the branded exports and international generics, degrew by 27.9% yoy and 28.5% yoy respectively. The de-growth in the international
Market Outlook
October 22, 2012
generic formulations was mainly due to price erosion, product mix and capacity
constraints.
The management expects FY2013 to be a strong year for the domestic formulation
business, where the company expects to log in a 12-14% yoy growth, driven by the
chronic segment.
On the operating front, the company posted an OPM of 15.7% vs an expectation
of 14.2%. The gross margins expanded by 235bps on the back of higher
contribution from domestic formulations, which aided on the operating front. The
margins came in at 15.7% vs 14.2% (our expectation). On a yoy basis, the
company posted a 72bps expansion in OPM, lower than the expansion in the
gross margins, on account of a higher-than-expected rise in the salary and selling,
general and administrative (SG&A) expenses, which grew by 30.7% yoy and
22.5% yoy respectively. On the other hand the other expenditure de-grew by 4.8%
yoy which aided the expansion in the OPM. This lead the net profits to come above
expectations at `42cr (expectation was of `35cr). At the current market price, the
stock is trading at an attractive valuation. Hence, we maintain our Buy
recommendation on the stock with a target price of `91.
Y/E
Sales
OPM
March
(` cr)
(%)
FY2013E
1,624
FY2014E
1,855
PAT EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
(`)
(%)
(x)
(x)
(x)
(x)
14.2
124 6.6
27.8
10.6
2.6
6.5
0.9
15.6
171 9.1
30.0
7.7
2.0
5.0
0.8
(` cr)
Force Motors (CMP: `425 / TP: `591/ Upside: 41%)

Force Motors Ltd. (FML) reported healthy set of numbers with robust performance
on operating front for 2QFY2013. The company's top line de-grew by 4.7% yoy
and came in at `504cr, lower than our estimate of `534cr. On operating front,
EBITDA grew by 11.6% yoy and came in at `31cr and was higher by whooping
78.7% on qoq basis. Operating margins too improved substantially by 89 basis
points yoy and 273 basis points on qoq basis and came in at 6.5%. Margin
improvement (yoy) is mainly attributable to reduction in employee cost (11.8% vis-vis 15%) as well as raw material cost (71.3% vis--vis 72.3%) as percentage of
sales. Adjusted PAT came in at `19cr, 351% higher yoy, compared to our
estimates of `11cr; owing to strong operating performance coupled with
substantial addition made by other income (`13cr vis--vis 1.5cr). We maintain
our Buy recommendation with target price of `591 based on target PE of 8x for
FY2014E.
Y/E
March
Sales
OPM
PAT EPS
(` cr)
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
(` cr)
(%)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
2,214
5.0
59 44.8
4.9
9.4
0.5
1.9
0.1
FY2014E
2,753
5.6
97 73.9
7.6
5.7
0.4
1.7
0.1
Tata Sponge Iron (CMP: `322, TP: `384, Upside: 19%)

For 2QFY2013, TSILs reported inline revenue at `196cr, 12.6% higher on a yoy
basis from `174cr in 2QF2012. Capacity utilization during the quarter stood at
81% (79,000MT) due to a planned shutdown of the manufacturing plant, while
volume sales stood at 89,000MT. However, EBITDA margin contracted by 57bp on
Market Outlook
October 22, 2012
a yoy basis to 16.6%% inspite of a fall in imported coal prices due to utilization of
high cost inventory from previous quarter, which led to an increase in net raw
material cost. Net profit increased by 18.6% yoy from `21cr in 2QFY2012 to
`26cr currently due to onetime increase in other income during the quarter. Post
the open offer by Tata Steel, TSIL has become a subsidiary of the company, which
owns a 51% stake in the company. The company has stake in Talcher coal block in
Radhikapur and is pending forest approval. According to some media reports,
there has been a deduction of the bank guarantees for the coal block; however the
management has not received any notification regarding the same. We maintain
our Buy recommendation on the stock with a revised target price of `384 based on
a target P/B of 0.8x for FY2014E.
Y/E
Sales
OPM
March
(` cr)
(%)
FY2013E
750 18.6
803 18.4
FY2014E
PAT EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
(%)
(x)
(x)
(x)
(x)
10165.4 33.6
10669.1 32.8
4.9
4.7
0.8
0.7
1.5
0.9
0.3
0.2
(` cr)
(`)
Result Preview
HDFC (CMP: `752/ TP: -/ Upside: -)
HDFC is slated to announce its 2QFY2013 results today. We expect HDFC to
report a 21.5% yoy growth in net interest income to `1,413cr. Other income is
expected to remain moderately by 4.4% yoy to `328cr. We expected provisioning
to come in at `36cr and net PAT to grow by 15.2% yoy to `1,118cr. We remain
Neutral on the stock.
Y/E
Op. Inc
NIM
PAT
EPS
ABV
ROA
ROE
P/E
P/ABV
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
7,340
3.5
4,828
31.5
157.7
1.0
34.8
23.9
4.8
FY2014E
8,805
3.5
5,792
37.8
176.9
1.0
32.2
19.9
4.3
L&T (CMP: `1,632/ TP: `1,721/ Upside: 5%)

We expect Larsen and Toubro (L&T) to record a revenue of `12,634cr, registering
a 12.3% yoy growth for 2QFY2013. This growth can be attributed to the
companys large order book (~`1.4trillion). On the EBITDA front, we expect the
companys margin to witness on expansion of 96bp yoy to 11.4%. We project the
net profit to come in at `891cr, indicating a growth of 11.6% yoy.
At the current market price of `1,139, the stock is trading at 21.4x FY2014E
earnings and 3x FY2014E P/BV, on a standalone basis. We have used the
sum-of-the-parts (SOTP) methodology to value the company to capture all its
business initiatives and investments/stakes in the different businesses. Ascribing
separate values to its parent business on a P/E basis and investments in
subsidiaries on P/E, P/BV and market cap basis, our target price works out to
`1,721. Owing to the surge in the companys stock price, we recommend an
Accumulate rating on the stock.
Market Outlook
October 22, 2012
Y/E
Sales
OPM
March
(` cr)
(%)
PAT EPS
(` cr)
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
60,474
12.1 4,417 72.1
16.3
22.6
3.5
15.0
1.8
FY2014E
69,091
11.5 4,678 76.3
15.1
21.4
3.0
13.9
1.6
Cairn India (CMP: `334/ TP: `380 / Upside: - 14%)

Cairn India is slated to report its 2QFY2013 results today. Cairn India's net sales
are expected to increase by 66.6% yoy to `4,418cr mainly due to increase in
volumes coupled with a higher crude oil realization. Its operating margin is
expected to decline by 25bps yoy to 79.1% and its bottom line is expected to
increase by 1109.9% yoy to `2,807cr because of a lower base of 2QFY2012.
Cairn India had to pay a one-time royalty of `1,355cr in 2QFY2012 which had
depressed its bottom-line. We recommend Accumulate rating on the stock with a
target price of `380.
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
16,605
75.4
10,875
57.02
20.2
5.9
1.1
3.8
2.9
FY2014E
17,258
71.7
10,477
54.93
16.3
6.1
0.9
3.1
2.2
Bank of Baroda- (CMP: `797, TP: `864, Upside: 8.4%)

Bank of Baroda is scheduled to announce its 2QFY2013 results today. We expect
the bank to report a NII growth of 14.8% yoy to `2,947cr. Operating expenses are
expected to grow much higher by 17.6% yoy to `1,366cr, leading to moderate
growth of 10.7% in operating profits to `2,369cr. Provisioning expenses are
expected to increase by 25.3% yoy to 622cr, which is expected to result in subdued
growth of 4.9% yoy in net profit to `1,223cr. At the CMP, the stock is trading at
0.9x FY2014E ABV. We maintain our Accumulate recommendation on the stock
with a target price of `864.
Y/E
March
Op. Inc
NIM
PAT
EPS
ABV
(`)
ROA
ROE
P/E
P/ABV
(` cr)
(%)
(` cr)
(%)
(x)
(x)
(x)
(x)
FY2013E
15,473
2.6
4,754
115.3 756.0
1.0
16.2
6.7
1.0
FY2014E
18,142
2.6
5,748
139.4 864.0
1.0
17.2
5.5
0.9
Idea Cellular (CMP: `81 / TP: - / Upside: -)

Idea Cellular is slated to announce its 2QFY2013 results today. We expect the
company to record revenue of `5,544cr, up 0.7% qoq. This is expected primarily
on the back of almost flat ARPM at `0.41/min and 2.0% qoq decline in MOU to
372min. APRU is expected to decline marginally by 2.3% qoq to `153/month.
EBITDA margin of the company is expected to decline by 13bp qoq to 26.0%. PAT
is expected at `250cr. We maintain Neutral rating on the stock.
Market Outlook
October 22, 2012
Y/E
Sales
OPM
PAT
EPS
RoE
P/E
P/BV
EV/EBITDA
EV/sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
22,582
26.4
1,097
3.3
7.8
24.3
1.9
6.1
1.6
FY2014E
24,684
26.9
1,559
4.7
9.9
17.1
1.7
5.3
1.4
Syndicate Bank- (CMP: `123 / TP: - / Upside: -)

Syndicate Bank is slated to announce its 2QFY2013 results today. We expect the
bank to report a subdued Net Interest Income (NII) growth of 4.0% yoy to
`1,366cr. Non-interest income is expected to increase by 6.3% yoy to `260cr.
Operating expenses of the bank are expected to be higher by 11.5% yoy to
`743cr, which would result in flat performance at pre-provisioning profits level.
However, net profit is expected to go up by 10.4% yoy to `356cr, largely aided by
17.2% yoy decline in provisioning expenses to `420cr. At the CMP, the stock
trades at a valuation of 0.7x FY2014E ABV. We maintain our Neutral
recommendation on the stock.
Y/E
Op. Inc
NIM
PAT
EPS
ABV
ROA
ROE
P/E
P/ABV
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
6,722
2.9
1,461
24.3 152.0
0.7
17.0
4.8
0.8
FY2014E
7,719
3.0
1,640
27.2 172.8
0.7
16.8
4.3
0.7
March
Quarterly Bloomberg Brokers Consensus Estimate

Bank of Baroda (22/10/2012)
Particulars (` cr)
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
1,195
1,166
1,139
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
1,145
971
18
1,002
14
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
Net sales
4,642
2,652
75
4,440
EBITDA
3,592
2,065
74
3,457
77.4
77.9
2,816
763
269
3,826
(26)
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
Net sales
5,451
4,608
18
5,502
(1)
EBITDA
17
1,436
(3)
Net profit
HDFC (22/10/2012)
Particulars (` cr)
Net profit
Cairn India (22/10/2012)

Particulars (` cr)
EBITDA margin (%)

Net profit
77.9
Idea - Consolidated (22/10/2012)

Particulars (` cr)
1,392
1,187
EBITDA margin (%)
25.5
25.8
Net profit
207
106
26.1
95
234
(12)
Market Outlook
October 22, 2012
Larsen & Toubro (22/10/2012)

Particulars (` cr)
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
13,178
11,245
17
11,955
10
1,300
1,174
11
1,087
20
EBITDA margin (%)
9.9
10.4
Net profit
892
798
12
864
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
5,104
5,784
(12)
6,208
(18)
EBITDA
660
919
(28)
937
(30)
EBITDA margin (%)
12.9
15.9
Net profit
446
604
(26)
615
(27)
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
2,191
1,742
26
2,219
(1)
10
458
(3)
Net sales
EBITDA
9.1
Hero Moto Corp (23/10/2012)

Particulars (` cr)
Net sales
15.1
Lupin Consolidated (23/10/2012)

Particulars (` cr)
Net sales
EBITDA
443
404
EBITDA margin (%)
20.2
23.2
Net profit
283
218
20.6
30
285
(1)
Sterlite Industries Consolidated (23/10/2012)

Particulars (` cr)
Net sales
EBITDA
EBITDA margin (%)
Net profit
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
10,421
10,134
10,591
(2)
2,365
2,482
(5)
2,308
22.7
24.5
1,239
1,500
21.8
(17)
1,779
(30)
United Phosphorous Consolidated (23/10/2012)

Particulars (` cr)
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
2,032
1,721
18
2,180
(7)
EBITDA
353
325
386
(9)
EBITDA margin (%)
17.4
18.9
Net profit
159
43
266
172
(8)
2QFY13E
2QFY12
y-o-y (%)
1QFY13
q-o-q (%)
297
235
26
290
Net sales
17.7
Yes Bank Ltd (23/10/2012)

Particulars (` cr)
Net profit
Market Outlook
October 22, 2012
Economic and Political News
Finance Ministry expects revival in industrial activity as banks cut rates

Power firms may sign FSAs with Coal India by November end
Government lifts ban on edible oil exports in branded consumer packs
Corporate News
BPCL raises US$500mn at 4.6% via bond offering in overseas markets

Kingfisher Airlines' license suspended by aviation regulator
Arasu Cable to start operations in Chennai from November
ONGC looks to hire RIL's ununtilised production facilities
RIL to get higher gas price for KG-D6 gas
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
Market Outlook
October 22, 2012
Result Calendar
Date
Company
October 22, 2012
HDFC, Larsen & Toubro, Cairn India, Idea Cellular, Bank of Baroda, Syndicate Bank, Indiabulls Fin.
October 23, 2012
Hero Motocorp, Sterlite Inds, Lupin, Yes Bank, United Phosphorus, Bank of Maharashtra
October 24, 2012

October 25, 2012
Adani Enterp., M&M, Kotak Mah. Bank, Asian Paints, Nalco, Oriental Bank, Ipca labs, Bajaj Electrical, KPIT Cummins
October 26, 2012
NTPC, ICICI Bank, HUL, GAIL, Punjab Natl.Bank, Sesa Goa, IDFC, Dabur India, IOB, United Bank, Hind. Const.
October 27, 2012
IDBI Bank, Sarda Energy
October 28, 2012
JSW Steel
October 29, 2012
BHEL, Colgate, Styrolution
October 30, 2012
Maruti, Dr Reddy's, Grasim Inds, Mahindra Satyam, Thermax, Taj GVK, PVR
October 31, 2012
NHPC, Titan Inds., LIC Housing Fin., Tata Global, Aventis, TVS Motor
November 01, 2012
Hexaware, BGR Energy , Jyothy Laboratories
November 02, 2012
Wipro, Rural Elec.Corp., Marico, Apollo Tyres, Indoco Remedies, Dishman Pharma
November 03, 2012
Godrej Consumer
Source: Bloomberg, Angel Research
Global economic events release calendar

Date
Country
Event Description
October 23, 2012
Euro Zone
October 24, 2012
Germany
Euro-Zone Consumer
Confidence
PMI Services
Germany
PMI Manufacturing
US
New home sales
US
FOMC rate decision
US
Unit
Period
Bloomberg Data
Last Reported
Estimated
Value
Oct A
(25.90)
(26.00)
Value
Oct A
49.70
50.00
Value
Oct A
47.40
48.00
Thousands
Sep
373.00
385.00
Oct 24
0.25
0.25
Initial Jobless claims
Thousands
Oct 20
388.00
365.00
UK
GDP (YoY)
% Change
3Q A
(0.50)
(0.50)
October 26, 2012
US
GDP Qoq (Annualised)
3Q A
1.30
1.80
October 30, 2012
US
Consumer Confidence
Oct
70.30
--
India
RBI Repo rate
% Change
S.A./
1985=100
%
Oct 30
8.00
8.00
India
RBI Cash Reserve ratio
Oct 30
4.50
4.25
India
RBI Reverse Repo rate
Oct 30
7.00
7.00
October 31, 2012
Germany
Unemployment change (000's)
Thousands
Oct
9.00
--
November 01, 2012
UK
PMI Manufacturing
Value
Oct
48.40
--
China
PMI Manufacturing
Value
Oct
49.80
--
US
Change in Nonfarm payrolls
Thousands
Oct
114.00
--
US
Unnemployment rate
Oct
7.80
--
November 06, 2012
UK
Industrial Production (YoY)
% Change
Sep
(1.20)
--
November 08, 2012
UK
BOE Announces rates
% Ratio
Nov 8
0.50
0.50
Euro Zone
ECB announces interest rates
Nov 8
0.75
--
China
Industrial Production (YoY)
% Change
Oct
9.20
--
China
Consumer Price Index (YoY)
% Change
Oct
1.90
--
October 25, 2012
November 02, 2012
November 09, 2012
Market Strategy
October 22, 2012
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
10.0
8.0
9.2
9.0
8.5
9.0
8.2
7.5
8.0
6.0
8.0
7.6
6.0
6.7
7.0
6.1
5.7
5.3 5.5
5.0
(%)
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
(2.8)
(4.0)
(1.8)
(6.0)
(5.0)
Mfg. PMI
60.0
Services PMI
58.0
9.5
7.7
8.0
(0.2)
Exhibit 4: Manufacturing and services PMI
12.0
9.9
(1.3)
Source: MOSPI, Angel Research
Exhibit 3: Monthly WPI inflation trends
10.0
Jan-12
Dec-11
Nov-11
1QFY13
4QFY12
3QFY12
2QFY12
1QFY12
4QFY11
3QFY11
2QFY11
1QFY11
4QFY10
3QFY10
2QFY10
1QFY10
Source: CSO, Angel Research
Oct-11
(2.0)
4QFY09
1.0
3.5
3.0
6.9
7.4
7.7
7.5
7.6
7.6
7.5
7.6
7.8
56.0
Source: MOSPI, Angel Research
Sep-12
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Exhibit 5: Exports and imports growth trends

(%)
Sep-11
Sep-12
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
48.0
Jan-12
50.0
0.0
Dec-11
2.0
Nov-11
52.0
Oct-11
4.0
Oct-11
54.0
6.0
Exhibit 6: Key policy rates
60.0
(%)
9.00
45.0
8.00
30.0
7.00
Exports yoy growth
Imports yoy growth
Repo rate
Reverse Repo rate
CRR
8.00
7.00
6.00
4.50
5.00
Source: RBI, Angel Research
Aug-12
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Jul-12
Jun-12
May-12
Apr-12
Mar-12
Feb-12
4.00
Sep-11
(30.0)
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
0.0
Sep-12
15.0
(15.0)
2.5
2.7
2.5
2.0
Oct-11
4.0
4.3
2.7
Sep-11
6.0
4.0
Market Outlook
October 22, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Agri / Agri Chemical

Rallis
Neutral
136
2,653
1,466
1,686
14.8
14.8
7.0
8.1
19.5
16.8
4.1
3.5
22.6
22.5
1.9
1.6
United Phosphorus
Buy
119
170
5,476
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
Amara Raja Batteries
Neutral
238
4,071
2,844
3,275
15.4
15.6
15.9
18.8
15.0
12.7
3.9
3.1
28.9
26.9
1.4
1.2
Apollo Tyres
Buy
85
99
4,262
13,412
15,041
11.3
11.0
12.1
14.2
7.0
6.0
1.3
1.1
19.6
19.2
0.5
0.4
Ashok Leyland
Buy
23
30
6,226
14,920
16,850
9.0
9.3
2.2
2.8
10.8
8.5
2.0
1.7
13.3
15.6
0.5
0.4
Automotive Axle#
Accumulate
396
430
598
993
1,140
11.6
11.5
36.9
43.0
10.7
9.2
2.1
1.8
21.2
21.3
0.7
0.5
Bajaj Auto
Neutral
1,770
51,224
21,109
23,738
18.4
18.5
108.5
122.1
16.3
14.5
6.8
5.4
46.1
41.5
2.1
1.7
Bharat Forge
Buy
304
351
7,076
7,004
7,985
16.2
16.4
20.3
25.1
15.0
12.1
2.8
2.3
20.0
20.9
1.2
1.0
Bosch India*
Neutral
8,851
27,790
8,793
10,294
17.4
18.5
348.3
435.8
25.4
20.3
4.9
4.1
19.4
20.1
2.8
2.3
CEAT
Buy
117
164
400
4,989
5,634
8.7
8.5
32.7
41.1
3.6
2.8
0.5
0.5
15.8
16.9
0.3
0.2
Exide Industries
Neutral
148
12,610
6,229
7,200
14.8
15.8
7.2
9.0
20.7
16.6
3.6
3.1
18.5
19.9
1.7
1.4
FAG Bearings*
Neutral
1,822
3,028
1,505
1,768
17.5
18.0
111.2
132.7
16.4
13.7
3.4
2.8
22.8
22.2
1.8
1.4
Hero Motocorp
Accumulate
1,849
2,077
36,930
24,941
28,706
15.0
15.5
122.5
134.0
15.1
13.8
6.6
5.2
49.6
42.2
1.2
1.0
JK Tyre
Buy
108
135
444
7,517
8,329
6.1
6.3
26.2
38.5
4.1
2.8
0.5
0.5
13.4
17.2
0.3
0.3
Auto & Auto Ancillary
Mahindra and Mahindra Accumulate
823
944
50,555
37,434
42,860
11.6
11.5
50.4
56.3
16.4
14.6
3.4
2.9
22.6
21.5
1.1
0.9
Maruti
Neutral
1,369
39,556
41,796
49,350
7.6
8.6
66.6
92.6
20.6
14.8
2.4
2.1
12.0
14.8
0.7
0.6
Motherson Sumi
Neutral
150
8,839
24,285
27,317
6.7
7.2
8.1
10.6
18.7
14.2
3.9
3.2
22.9
24.7
0.5
0.5
Subros
Buy
29
34
175
1,230
1,378
8.8
8.6
4.5
5.7
6.5
5.1
0.6
0.6
9.8
11.8
0.4
0.3
Tata Motors
Buy
269
316
71,665 195,096 219,428
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
Accumulate
43
49
2,029
7,611
8,443
7.9
7.9
4.7
5.4
9.1
7.9
1.5
1.3
17.9
18.1
0.2
0.2
Capital Goods
ABB*
Sell
780
593
16,526
8,760
10,023
6.2
8.7
14.5
24.7
54.0
31.6
5.9
5.1
11.6
17.6
1.9
1.6
BGR Energy
Neutral
273
1,972
3,669
4,561
11.0
11.0
24.7
29.6
11.1
9.2
1.6
1.5
15.3
16.7
1.1
1.0
BHEL
Neutral
242
59,256
47,801
43,757
19.0
18.8
25.3
22.8
9.6
10.6
2.9
2.5
34.3
25.3
1.1
1.2
Blue Star
Neutral
214
1,924
3,047
3,328
5.4
6.9
12.5
16.2
17.1
13.2
4.1
3.4
26.1
28.2
0.7
0.6
Crompton Greaves
Accumulate
130
141
8,333
12,691
14,126
7.4
8.9
7.0
9.7
18.6
13.4
2.1
1.9
11.9
15.0
0.7
0.6
Jyoti Structures
Accumulate
48
54
392
2,622
2,744
10.7
10.5
9.6
12.2
5.0
3.9
0.5
0.5
10.8
12.3
0.4
0.3
KEC International
Accumulate
71
78
1,814
6,858
7,431
7.1
7.5
8.3
9.8
8.5
7.2
1.4
1.2
25.1
24.0
0.4
0.4
LMW
Neutral
2,040
2,298
2,369
2,727
11.7
11.7
143.4
166.0
14.2
12.3
2.4
2.2
17.4
18.4
0.5
0.4
Thermax
Neutral
575
6,849
5,514
5,559
8.9
10.2
26.9
30.3
21.4
19.0
3.7
3.2
18.4
18.2
1.1
1.1
Market Outlook
October 22, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Cement
ACC
Neutral
1,408
26,438
10,964
12,417
21.6
21.5
76.9
82.2
18.3
17.1
3.5
3.1
19.5
19.1
2.1
1.8
Ambuja Cements
Neutral
206
31,802
10,163
11,729
25.4
24.9
11.2
12.5
18.5
16.5
4.0
3.6
20.3
20.5
2.7
2.3
India Cements
Neutral
98
3,021
4,354
4,929
18.6
18.7
9.8
12.3
10.0
8.0
0.8
0.8
8.6
10.2
1.2
1.0
J K Lakshmi Cements
Neutral
116
1,415
1,964
2,278
19.5
20.4
16.3
17.9
7.1
6.5
1.0
0.9
14.7
14.6
0.9
1.2
Madras Cements
Neutral
187
4,455
3,608
3,928
27.6
27.0
15.7
18.3
11.9
10.3
1.9
1.6
16.9
17.0
1.9
1.6
Shree Cements^
Neutral
4,206
14,654
5,701
6,210
29.7
28.1
240.7
260.7
17.5
16.1
4.2
3.5
27.1
23.6
2.0
1.6
UltraTech Cement
Neutral
2,010
55,082
20,913
23,530
21.3
22.7
93.2
110.5
21.6
18.2
3.7
3.2
18.4
18.7
2.6
2.3
220
304
1,158
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
Construction
Ashoka Buildcon
Buy
Consolidated Co
Neutral
14
259
2,262
2,522
6.7
7.5
1.5
2.7
9.4
5.3
0.4
0.4
4.4
7.5
0.4
0.4
Hind. Const.
Neutral
17
1,049
4,239
4,522
9.9
11.2
(2.3)
(1.0)
(7.7)
(17.9)
1.0
1.1
(11.4)
(5.6)
1.2
1.2
IRB Infra
Accumulate
146
166
4,856
3,964
4,582
42.3
40.2
15.7
16.9
9.3
8.6
1.5
1.3
16.6
15.8
2.8
2.6
ITNL
Buy
184
232
3,581
6,840
7,767
26.4
26.1
24.4
30.3
7.5
6.1
1.1
1.0
16.0
16.2
2.7
2.8
IVRCL Infra
Accumulate
45
51
1,375
5,510
6,722
8.8
9.0
2.5
4.6
17.7
9.8
0.6
0.6
3.4
5.8
0.7
0.7
Jaiprakash Asso.
Neutral
93
19,872
15,259
17,502
25.7
24.7
4.0
4.8
23.3
19.6
1.8
1.7
8.5
9.3
2.6
2.3
Larsen & Toubro
Accumulate
1,633
1,721
100,217
60,474
69,091
12.1
11.5
79.7
85.4
20.5
19.1
3.5
3.0
16.3
15.1
1.8
1.6
Madhucon Proj
Buy
34
56
249
2,206
2,502
10.7
10.7
4.6
4.7
7.3
7.2
0.4
0.4
5.2
5.0
0.7
0.7
Nagarjuna Const.
Reduce
48
45
1,225
5,804
6,513
8.0
8.6
3.0
3.5
15.7
13.7
0.5
0.5
3.2
3.6
0.6
0.7
Patel Engg.
Neutral
80
559
3,609
3,836
13.1
13.1
14.0
14.6
5.7
5.5
0.4
0.3
6.3
6.1
1.0
1.0
Punj Lloyd
Neutral
52
1,719
11,892
13,116
8.9
8.9
1.7
3.1
30.5
16.8
0.6
0.6
1.9
3.4
0.6
0.5
Sadbhav Engg.
Buy
139
182
2,096
2,506
3,147
10.3
10.7
7.5
10.4
18.6
13.4
2.3
2.0
13.5
16.0
1.0
0.8
Simplex Infra
Buy
218
265
1,080
6,732
7,837
8.1
8.4
23.4
29.4
9.3
7.4
0.8
0.8
9.2
10.6
0.5
0.5
Allahabad Bank
Reduce
143
131
7,133
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
Axis Bank
Accumulate
Bank of Baroda
Financials
114
97
6,388
4,929
5,633
3.1
3.1
23.7
24.5
4.8
4.7
0.8
0.7
16.6
15.3
1,200
1,328
49,722
15,686
18,687
3.1
3.2
116.8
138.0
10.3
8.7
1.9
1.6
20.0
20.2
Neutral
797
31,204
15,473
18,142
2.6
2.6
115.3
139.4
6.9
5.7
1.1
0.9
16.2
17.2
Bank of India
Accumulate
301
330
17,279
12,573
14,971
2.3
2.4
58.2
68.0
5.2
4.4
0.9
0.7
15.9
16.3
Bank of Maharashtra
Neutral
50
2,924
3,442
3,802
3.1
3.2
8.9
11.4
5.6
4.3
0.7
0.6
13.5
15.5
Canara Bank
Reduce
447
421
19,780
10,905
12,783
2.1
2.2
74.9
85.1
6.0
5.3
0.9
0.8
15.1
15.3
Central Bank
Neutral
76
5,558
7,095
8,102
2.5
2.7
15.6
21.0
4.8
3.6
0.8
0.7
12.2
14.7
Market Outlook
October 22, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Financials
Corporation Bank
Accumulate
409
447
6,061
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
110
3,866
3,147
3,495
2.8
2.9
24.8
24.4
4.5
4.5
0.8
0.7
18.7
15.9
Federal Bank
Reduce
482
450
8,244
2,593
3,009
3.2
3.2
44.9
52.5
10.7
9.2
1.3
1.2
12.8
13.5
HDFC
Neutral
752
115,787
7,340
8,805
3.5
3.5
31.5
37.8
23.9
19.9
4.8
4.3
34.8
32.2
HDFC Bank
Neutral
628
148,374
21,696
26,811
4.4
4.5
28.7
36.0
21.9
17.4
4.2
3.5
20.7
22.0
ICICI Bank
Buy
1,056
1,245
121,364
22,304
26,855
2.9
3.0
68.6
82.0
15.4
12.9
1.9
1.7
14.2
15.6
IDBI Bank
Neutral
99
12,707
7,761
9,484
1.9
2.2
17.1
22.9
5.8
4.3
0.7
0.6
11.9
14.4
Indian Bank
Neutral
184
7,886
6,062
6,818
3.4
3.4
40.5
41.6
4.5
4.4
0.8
0.7
18.1
16.3
IOB
Accumulate
81
87
6,468
7,343
8,391
2.5
2.5
16.0
21.3
5.1
3.8
0.6
0.5
11.3
13.6
J & K Bank
Reduce
1,155
1,021
5,597
2,600
2,850
3.6
3.5
192.3
188.0
6.0
6.1
1.2
1.0
21.0
17.7
LIC Housing Finance
Buy
248
301
12,495
1,867
2,338
2.4
2.4
21.1
28.5
11.7
8.7
1.9
1.6
17.5
20.4
Oriental Bank
Neutral
294
8,589
6,278
7,125
2.7
2.8
56.7
62.6
5.2
4.7
0.7
0.6
14.1
13.9
Punjab Natl.Bank
Accumulate
822
941
27,886
19,934
22,705
3.3
3.3
147.8
166.2
5.6
5.0
1.0
0.8
17.7
17.3
South Ind.Bank
Accumulate
23
25
3,132
1,535
1,760
2.9
2.8
3.5
3.9
6.6
6.0
1.1
1.0
19.5
17.1
St Bk of India
Neutral
2,257
151,431
63,806
73,435
3.5
3.6
225.7
258.4
10.0
8.7
1.7
1.4
17.7
17.8
Syndicate Bank
Reduce
123
117
7,431
6,722
7,719
2.9
3.0
24.3
27.2
5.1
4.5
0.8
0.7
17.0
16.8
UCO Bank
Neutral
78
5,215
5,411
6,124
2.4
2.5
17.0
16.5
4.6
4.8
0.9
0.8
16.7
14.4
Union Bank
Accumulate
209
226
11,501
9,924
11,647
2.8
2.9
38.6
46.3
5.4
4.5
0.9
0.7
15.4
16.3
United Bank
Accumulate
68
78
2,455
3,572
4,041
2.8
2.9
17.2
22.1
4.0
3.1
0.6
0.5
14.2
16.2
Vijaya Bank
Neutral
57
2,822
2,490
2,881
2.1
2.2
9.2
11.4
6.2
5.0
0.8
0.7
11.5
13.0
Yes Bank
Buy
383
452
13,635
3,270
4,253
2.8
3.0
33.9
42.2
11.3
9.1
2.4
2.0
23.1
23.6
3,882
37,233
11,198
13,184
16.3
16.3
121.0
144.8
32.1
26.8
10.8
8.5
37.4
35.3
3.3
2.7
487
584
5,815
5,835
6,824
5.7
6.0
20.7
25.4
23.5
19.2
9.3
7.1
43.1
41.9
0.9
0.8
1,249
16,981
3,018
3,429
20.9
22.2
35.7
42.3
35.0
29.5
32.3
24.0
101.0
93.5
5.5
4.8
FMCG
Asian Paints
Neutral
Britannia
Buy
Colgate
Neutral
Dabur India
Neutral
131
22,806
6,124
7,030
17.0
16.8
4.5
5.2
29.3
25.3
12.1
9.6
43.2
41.5
3.7
3.2
GlaxoSmith Con*
Neutral
3,058
12,861
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
690
23,493
6,097
7,233
18.4
18.6
21.9
26.5
31.6
26.1
7.0
5.8
25.5
25.4
4.0
3.4
HUL
Neutral
567
122,483
25,350
28,974
13.9
13.9
14.3
16.5
39.7
34.4
23.7
18.2
70.9
59.8
4.6
4.0
ITC
Neutral
298
233,725
29,513
33,885
35.4
35.8
9.3
10.8
32.1
27.6
10.6
8.9
35.6
35.0
7.6
6.6
Market Outlook
October 22, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
( )
Price ( )
( cr )
FY13E
OPM(%)
EPS ( )
FY14E
FY13E
FY14E
FY13E
PER(x)
P/BV(x)
FY14E
FY13E
FY14E
FY13E
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FMCG
Marico
Neutral
205
13,194
4,840
5,643
13.1
13.1
6.8
8.5
30.2
24.2
8.3
6.3
31.4
29.7
2.8
2.3
Nestle*
Neutral
4,775
46,042
8,610
10,174
20.9
21.2
114.8
139.8
41.6
34.2
25.1
17.5
71.2
60.3
5.4
4.5
Tata Global
Neutral
158
9,768
7,207
7,927
9.7
10.0
6.6
7.8
23.9
20.2
2.4
2.3
8.6
9.5
1.3
1.1
HCL Tech^
Accumulate
604
648
41,906
24,214
26,772
19.5
18.1
44.0
48.0
13.7
12.6
3.3
2.7
24.0
22.0
1.7
1.4
Hexaware*
Buy
110
140
3,255
1,966
2,161
22.5
21.4
11.6
12.2
9.5
9.0
2.5
2.1
26.8
23.9
1.4
1.2
Infosys
Accumulate
2,383
2,573
136,857
39,174
41,580
29.5
30.4
159.2
171.6
15.0
13.9
3.6
3.2
24.1
23.1
2.9
2.7
Infotech Enterprises
Neutral
194
2,163
1,886
2,032
17.9
17.3
18.7
20.2
10.4
9.6
1.6
1.4
14.9
14.0
0.8
0.7
KPIT Cummins
Buy
116
142
2,065
2,191
2,364
16.1
16.5
11.3
13.0
10.3
8.9
2.3
1.8
21.8
20.0
0.9
0.8
Mahindra Satyam
Neutral
107
12,534
7,628
8,062
19.9
18.4
9.7
10.0
10.9
10.6
3.0
2.4
27.7
22.2
1.2
1.1
Mindtree
Accumulate
655
747
2,679
2,324
2,437
20.0
17.7
73.3
74.7
8.9
8.8
2.1
1.7
24.1
19.7
0.9
0.8
Mphasis&
Neutral
401
8,417
5,700
5,993
18.0
16.9
37.0
37.3
10.8
10.7
1.6
1.4
14.3
12.6
1.0
0.9
NIIT
Neutral
35
576
1,034
1,146
9.9
11.0
5.2
6.4
6.7
5.5
0.9
0.8
12.8
14.3
0.4
0.3
Persistent
Reduce
465
420
1,860
1,207
1,278
26.2
24.3
42.4
44.3
11.0
10.5
1.9
1.6
17.1
15.5
1.2
1.1
TCS
Accumulate
1,290
1,405
252,540
61,611
67,507
29.3
29.1
69.0
74.0
18.7
17.5
6.1
5.0
32.4
28.6
3.9
3.5
Tech Mahindra
Accumulate
927
1,046
11,837
6,603
7,196
18.2
17.1
92.7
99.6
10.0
9.3
2.4
1.9
23.6
20.5
1.9
1.6
Wipro
Buy
344
421
84,803
43,800
48,332
19.5
19.3
25.6
28.1
13.5
12.3
2.6
2.2
18.9
17.9
1.6
1.4
D B Corp
Accumulate
221
236
4,060
1,604
1,786
22.3
23.8
11.2
13.7
19.9
16.2
3.7
3.2
20.3
21.4
2.4
2.1
HT Media
Accumulate
101
113
2,376
2,111
2,272
15.0
15.2
7.4
8.3
13.7
12.3
1.5
1.3
11.3
11.4
0.8
0.7
Jagran Prakashan
Accumulate
104
112
3,289
1,488
1,664
22.7
22.8
6.2
7.1
16.7
14.6
4.1
3.6
25.2
26.3
2.4
2.1
PVR
Neutral
215
560
625
732
17.4
17.1
13.3
15.6
16.2
13.8
1.8
1.6
13.2
13.8
1.3
1.1
Sun TV Network
Neutral
363
14,293
1,981
2,239
77.0
76.7
18.6
21.3
19.5
17.0
4.9
4.3
27.1
27.5
6.7
5.7
Bhushan Steel
Neutral
499
10,598
11,979
14,584
31.6
31.0
49.2
61.4
10.2
8.1
1.3
1.2
14.1
15.2
2.9
2.4
Coal India
Accumulate
354
385
223,410
69,808
75,550
27.4
27.4
26.0
28.3
13.6
12.5
3.9
3.2
32.5
28.1
2.3
1.9
Electrosteel Castings
Buy
24
29
820
1,984
2,074
10.6
11.6
0.8
2.0
28.4
11.7
0.5
0.2
1.7
4.1
0.6
0.6
Hind. Zinc
Accumulate
134
144
56,725
12,446
13,538
52.3
52.9
14.3
15.5
9.4
8.6
1.8
1.5
20.5
18.9
2.7
2.1
Hindalco
Neutral
115
21,999
84,855
92,446
8.7
9.3
13.2
16.2
8.7
7.1
0.7
0.6
7.8
8.9
0.6
0.6
JSW Steel
Neutral
734
16,373
38,740
41,459
17.3
17.0
79.9
89.4
9.2
8.2
0.9
0.8
10.4
10.6
0.9
0.8
MOIL
Accumulate
248
271
4,167
918
993
50.7
50.9
24.5
26.1
10.1
9.5
1.5
1.4
16.0
15.5
2.2
1.9
Monnet Ispat
Buy
295
379
1,895
2,511
3,303
23.8
26.0
46.3
57.3
6.4
5.1
0.7
0.6
12.4
13.7
1.7
1.2
IT
Media
Metals & Mining
Market Outlook
October 22, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
Sales ( cr )
FY13E
OPM(%)
EPS ( )
FY14E
FY13E
FY14E
FY13E
PER(x)
P/BV(x)
RoE(%)
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
EV/Sales(x)
FY14E
FY13E
FY14E
Metals & Mining

Nalco
Neutral
NMDC
Accumulate
50
12,770
7,401
7,841
16.7
19.2
3.4
4.1
14.5
12.1
1.0
1.0
7.4
8.4
1.3
1.2
186
214
73,823
12,934
14,266
79.4
80.1
21.1
23.4
8.8
8.0
2.4
1.9
29.6
26.5
3.9
3.2
SAIL
Sesa Goa
Neutral
82
33,953
47,252
60,351
14.2
14.8
9.6
11.7
8.6
7.0
0.8
0.7
9.4
10.6
1.2
1.0
Neutral
169
14,675
7,704
8,034
33.6
34.6
42.0
43.1
4.0
3.9
0.8
0.7
22.3
19.2
2.2
2.0
Sterlite Inds
Neutral
100
33,724
41,680
45,382
24.2
23.2
16.3
16.9
6.2
5.9
0.7
0.6
11.3
10.7
0.8
0.7
Tata Steel
Buy
407
481
39,538 145,799 150,431
10.3
11.2
48.6
63.3
8.4
6.4
0.8
0.8
10.5
12.4
0.5
0.5
Sarda
Buy
128
148
458
1,251
1,321
22.7
23.4
33.0
37.1
3.9
3.4
0.6
0.5
15.1
14.8
0.7
0.7
Prakash Industries
Godawari Power and
Ispat
Oil & Gas
Buy
53
73
714
2,694
2,906
14.6
16.6
16.4
20.8
3.2
2.6
0.3
0.3
11.4
12.8
0.5
0.4
Buy
119
161
378
2,341
2,425
15.6
17.3
33.3
43.2
3.6
2.8
0.4
0.4
13.2
14.4
0.5
0.5
Cairn India
Accumulate
334
380
63,702
16,605
17,258
75.4
71.7
57.0
54.9
5.9
6.1
1.1
0.9
20.2
16.3
2.9
2.2
GAIL
Neutral
360
45,659
50,176
55,815
15.5
15.8
35.4
36.5
10.2
9.9
1.8
1.6
18.9
17.0
0.6
0.5
ONGC
Accumulate
279
312
238,741 147,139 154,821
33.9
33.7
30.7
32.3
9.1
8.6
1.6
1.4
18.3
17.2
1.4
1.2
Reliance Industries
Neutral
803
263,012 362,700 380,031
7.9
8.0
60.0
63.3
13.4
12.7
1.3
1.2
11.1
10.6
0.7
0.7
Gujarat Gas*
Neutral
297
3,819
11.5
11.3
19.2
22.1
15.5
13.5
4.1
3.7
28.7
29.0
1.1
0.9
Indraprastha Gas
Neutral
254
3,553
3,040
3,135
24.3
26.7
24.8
27.9
10.2
9.1
2.4
2.0
25.5
23.6
1.2
1.0
Petronet LNG
Gujarat State Petronet
Ltd.
Pharmaceuticals
Neutral
169
12,660
29,145
33,736
6.6
6.6
14.2
16.0
11.9
10.6
2.9
2.3
26.9
24.4
0.5
0.4
Neutral
79
4,448
1,041
939
91.8
91.9
8.5
7.4
9.3
10.7
1.6
1.4
18.1
14.0
5.2
5.7
Alembic Pharma
Buy
70
91
1,314
1,624
1,855
14.2
15.6
6.6
9.1
10.6
7.7
2.6
2.0
27.9
29.9
0.9
0.8
Aurobindo Pharma
Neutral
157
4,565
5,243
5,767
14.6
14.6
11.8
12.6
13.3
12.4
1.7
1.4
17.9
16.4
1.4
1.2
Aventis*
Neutral
2,209
5,088
1,482
1,682
15.5
15.5
95.1
104.4
23.2
21.2
4.1
3.2
18.6
17.0
3.2
2.8
Cadila Healthcare
Accumulate
851
953
17,418
6,148
7,386
18.6
19.6
36.0
46.1
23.6
18.5
5.6
4.5
25.8
26.8
3.1
2.5
Cipla
Accumulate
359
399
28,833
8,031
9,130
23.4
22.4
18.4
20.0
19.5
18.0
3.2
2.8
17.8
16.6
3.4
2.9
Dr Reddy's
Accumulate
1,701
1,859
28,877
10,696
11,662
20.7
21.0
83.7
92.9
20.3
18.3
4.2
3.5
22.4
20.8
3.0
2.6
Dishman Pharma
Neutral
97
785
1,280
1,536
17.8
17.8
9.2
11.3
10.6
8.6
0.8
0.7
7.7
8.5
1.3
1.1
GSK Pharma*
Neutral
1,995
16,896
2,651
2,993
31.7
31.2
76.0
82.4
26.3
24.2
7.6
6.8
20.1
26.3
5.6
4.8
Indoco Remedies
Buy
65
92
596
685
837
15.2
15.2
7.4
8.9
8.7
7.3
1.3
1.2
16.4
17.0
1.1
0.9
Ipca labs
Neutral
458
5,775
2,850
3,474
20.7
20.7
29.2
36.6
15.7
12.5
3.7
2.9
26.1
26.1
2.2
1.8
Lupin
Accumulate
571
647
25,549
8,426
10,082
19.7
20.0
26.3
31.3
21.7
18.3
5.1
4.1
26.0
24.7
3.1
2.5
Orchid Chemicals
Neutral
109
767
1,667
1,835
13.9
13.9
11.4
13.3
9.6
8.2
0.6
0.6
6.6
7.3
0.9
0.8
3,811
3,228
Market Outlook
October 22, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Pharmaceuticals
Ranbaxy*
Neutral
540
22,790
12,046
11,980
18.0
15.8
31.3
29.8
17.2
18.1
5.9
4.7
39.1
28.9
1.9
1.9
Sun Pharma
Neutral
694
71,805
9,752
12,134
41.6
41.6
26.0
28.2
26.7
24.6
5.0
4.3
20.3
18.8
6.6
5.1
CESC
Neutral
339
4,236
5,218
5,644
24.2
23.8
44.6
47.6
7.6
7.1
0.8
0.7
11.0
10.6
1.6
1.6
GIPCL
Accumulate
NTPC
Neutral
Power
69
77
1,043
1,557
1,573
29.3
28.7
10.8
11.0
6.4
6.3
0.7
0.6
10.8
10.2
1.1
1.0
166
137,122
74,111
85,789
22.7
23.1
12.1
13.7
13.8
12.1
1.7
1.5
12.6
13.2
2.5
2.3
Real Estate
Anant Raj
Neutral
77
2,263
657
875
52.0
56.1
8.4
12.7
9.1
6.0
0.6
0.5
6.3
8.9
4.7
3.5
DLF
Neutral
206
34,999
9,878
12,033
44.7
46.1
9.6
13.4
21.5
15.4
1.4
1.3
6.4
8.7
6.0
5.0
HDIL
Accumulate
103
115
4,307
2,441
3,344
55.1
48.2
22.7
26.6
4.5
3.9
0.4
0.4
8.8
9.4
3.6
2.7
MLIFE
Neutral
403
1,644
813
901
26.2
26.6
32.0
37.1
12.6
10.9
1.3
1.2
10.4
11.0
2.4
2.1
Bharti Airtel
Neutral
267
101,261
79,147
86,745
31.1
32.5
9.9
15.1
26.9
17.7
1.9
1.7
7.0
9.7
2.0
1.7
Idea Cellular
Neutral
81
26,768
22,582
24,684
26.4
26.9
3.3
4.7
24.3
17.1
1.9
1.7
7.8
9.9
1.6
1.4
Rcom
Neutral
60
12,374
20,650
20,935
32.3
33.0
4.2
5.8
14.2
10.4
0.3
0.3
2.3
3.1
2.2
2.1
Abbott India
Neutral
1,483
3,152
1,602
1,833
10.4
11.8
54.7
71.7
27.1
20.7
5.1
4.4
20.0
22.7
1.8
1.5
Bajaj Electricals
Neutral
228
2,270
3,670
4,290
7.6
8.8
15.0
23.0
15.2
9.9
2.8
2.2
18.6
22.4
0.6
0.5
Cera Sanitaryware
Neutral
376
476
396
470
16.7
16.6
31.0
35.0
12.1
10.7
2.7
2.2
24.8
23.0
1.3
1.1
Cravatex
Buy
457
682
118
289
340
5.2
5.9
41.0
57.0
11.2
8.0
2.8
2.1
25.2
26.5
0.5
0.4
CRISIL
Neutral
969
6,800
982
1,136
34.3
34.3
34.3
40.0
28.2
24.2
12.8
10.2
50.9
46.9
6.5
5.5
Finolex Cables
Buy
48
61
727
2,334
2,687
6.2
6.5
8.0
10.0
5.9
4.8
0.8
0.7
13.0
14.9
0.2
0.2
Force Motors
Buy
421
591
548
2,214
2,765
4.5
5.4
39.0
74.0
10.8
5.7
0.5
0.4
4.4
7.6
0.1
0.1
Goodyear India
Neutral
317
732
1,543
1,654
6.5
7.3
24.8
31.1
12.8
10.2
2.1
1.8
17.1
19.0
0.3
0.2
Disa India
Accumulate
2,947
3,353
445
176
203
22.7
22.6
182.5
209.6
16.2
14.1
8.4
6.6
51.8
47.1
2.3
1.9
Greenply Industries
Buy
254
309
613
1,925
2,235
10.6
10.9
29.6
44.1
8.6
5.8
1.4
1.1
16.8
21.0
0.6
0.5
Hitachi
Reduce
139
130
320
868
977
3.9
6.6
2.7
10.9
50.8
12.8
1.8
1.7
3.7
13.6
0.5
0.4
2,667
2,842
2,358
1,847
2,162
4.3
7.3
69.0
135.0
38.7
19.8
3.5
3.0
9.3
16.3
1.2
1.0
1,099
1,056
1,081
8.1
10.6
34.0
47.0
18.4
13.3
2.6
2.2
14.7
17.5
1.1
1.0
Telecom
zOthers
Honeywell Automation* Accumulate

Styrolution ABS India*
Buy
625
744
ITD Cementation
Neutral
240
276
1,451
1,669
12.3
12.4
32.4
41.5
7.4
5.8
0.7
0.6
9.4
10.9
0.6
0.6
Jyothy Laboratories
Neutral
173
2,784
1,248
1,468
9.8
10.4
5.9
7.2
29.1
24.1
4.2
3.8
15.0
16.6
2.6
2.2
MCX
Neutral
1,400
7,138
553
624
65.3
66.3
62.5
72.0
22.4
19.4
6.2
5.3
27.5
27.4
9.9
8.3
MRF
Buy
10,165
12,884
4,311
11,804
12,727
10.4
10.5 1,289.9 1,431.3
7.9
7.1
1.5
1.3
21.3
19.4
0.5
0.4
Market Outlook
October 22, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
3,342
729
821
Sales ( cr )
OPM(%)
EPS ( )
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
3,728
887
1,108
18.3
18.6
95.0
120.9
35.2
27.6
18.4
14.9
57.4
59.5
4.2
3.4
875
1,019
1,208
12.3
13.0
51.0
68.4
14.3
10.7
3.8
2.8
30.3
30.2
1.0
0.8
zOthers
Page Industries
Neutral
Relaxo Footwears
Accumulate
Sintex Industries
Accumulate
71
79
1,929
4,751
5,189
16.3
16.6
13.6
15.8
5.2
4.5
0.7
0.6
12.9
13.2
0.8
0.6
Siyaram Silk Mills
Buy
295
392
276
1,042
1,173
12.4
12.5
66.3
78.5
4.5
3.8
0.9
0.7
21.1
20.8
0.5
0.4
S. Kumars Nationwide
Buy
18
24
547
7,134
7,985
19.7
19.4
12.2
14.1
1.5
1.3
0.2
0.1
11.3
11.5
0.6
0.6
SpiceJet
Buy
34
43
1,666
5,720
6,599
5.3
6.8
3.6
5.4
9.5
6.4
13.8
4.4
0.4
0.3
TAJ GVK
Buy
75
108
469
300
319
35.8
36.2
7.9
9.1
9.5
8.2
1.3
1.1
13.9
14.4
1.9
1.6
Tata Sponge Iron
Buy
322
377
496
787
837
16.2
17.5
58.5
66.9
5.5
4.8
0.8
0.7
14.9
15.1
0.3
0.2
TVS Srichakra
Accumulate
311
335
238
1,476
1,643
7.0
8.2
32.6
55.9
9.5
5.6
1.5
1.3
16.8
24.8
0.4
0.3
United Spirits
Neutral
1,274
16,661
10,289
11,421
13.5
14.3
31.0
42.9
41.0
29.7
3.2
2.9
8.1
10.3
2.3
2.1
Vesuvius India
Neutral
355
721
560
611
16.1
17.0
24.7
28.8
14.4
12.4
2.1
1.9
15.8
16.2
1.2
1.1
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 19, 2012
Market Outlook
October 22, 2012

Market Outlook 22-10-12

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Market Outlook 22-10-12

Hochgeladen von

Copyright:

Verfügbare Formate

Market Outlook

October 22, 2012

(0.6) (109.6) 18,682

(0.9) (114.9) 13,193

(1.3) (138.6) 10,351

OIL & GAS

Refer detailed news analysis on the following page

Net Inflows (October 18, 2012)

FII Derivatives (October 19, 2012)

Jet Air India

Airtel, Vodafone, Idea, Telenor submit applications for 2G auction; RCom,

(1.5) (205.4) 13,344

Airtel, Vodafone, Idea, Telenor submit applications for 2G

Vedanta to resume operations at Odisha refinery

Bosch to expand vehicle servicing centers to 3,000 in three years

of companys revenue. At `8,851, the stock is trading at 20.3x its CY2013E

ITC (CMP: `298/ TP:- /Upside: -)

Ultratech (CMP: `2,010 / TP: - / Upside: -)

Bajaj Auto (CMP: `1,770 / TP: - / Upside: -)

P/BV EV/EBITDA EV/Sales

Exide Industries (CMP: `148 / TP: - / Upside: -)

Petronet LNG (CMP: `169, TP: -, Upside: -)

Indian Bank- (CMP: `184 / TP: - / Upside: -)

our Neutral recommendation on the stock.

Federal Bank- (CMP: `482/ TP: -/ Upside: -)

South Indian Bank (CMP: 23/ TP: 25/ Upside: 8.3%)

Blue Star (CMP: `214 / TP: `249 / Upside: 16%)

Note: Numbers are subject to change post conference call

Alembic Pharmaceuticals (CMP: `70/ TP: `91/ Upside: 30%)

Force Motors (CMP: `425 / TP: `591/ Upside: 41%)

Tata Sponge Iron (CMP: `322, TP: `384, Upside: 19%)

L&T (CMP: `1,632/ TP: `1,721/ Upside: 5%)

12.1 4,417 72.1

11.5 4,678 76.3

Cairn India (CMP: `334/ TP: `380 / Upside: - 14%)

Bank of Baroda- (CMP: `797, TP: `864, Upside: 8.4%)

Idea Cellular (CMP: `81 / TP: - / Upside: -)

Syndicate Bank- (CMP: `123 / TP: - / Upside: -)

Quarterly Bloomberg Brokers Consensus Estimate

Cairn India (22/10/2012)

EBITDA margin (%)

Idea - Consolidated (22/10/2012)

EBITDA margin (%)

Larsen & Toubro (22/10/2012)

EBITDA margin (%)

EBITDA margin (%)

Hero Moto Corp (23/10/2012)

Lupin Consolidated (23/10/2012)

EBITDA margin (%)

Sterlite Industries Consolidated (23/10/2012)

United Phosphorous Consolidated (23/10/2012)

EBITDA margin (%)

Yes Bank Ltd (23/10/2012)

Economic and Political News

Finance Ministry expects revival in industrial activity as banks cut rates

BPCL raises US$500mn at 4.6% via bond offering in overseas markets

October 22, 2012

October 23, 2012

October 24, 2012

October 26, 2012

October 27, 2012

IDBI Bank, Sarda Energy

October 28, 2012