Market Outlook, 08-08-2013

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Market OutlookAugust 8, 2013

Dealers DiaryIndian markets are expected to open flat to positive tracking marginally positive

opening in most of the Asian markets.

The US markets fell in yesterdays trading session, third consecutive session of fall,

as uncertainty over the timing of cuts in the Federal Reserves monthly bond buys

had equities retreating from recent highs. Atlanta Fed President Dennis Lockhart

and Chicago Fed President Charles Evans both delivered remarks on Tuesday

suggesting that the central bank will begin scaling back its bond purchases later

this year, potentially as soon as the September meeting. While the remarks should

not have come as a surprise to anyone, the negative reaction in the markets

reflected the continued jitters over the outlook for the program. Later in the day,

Cleveland Fed President Sandra Pianalto said she would be prepared to scale back

the pace of asset purchases if the labor market continues to improve, although she

did not specify a time frame.Meanwhile, Indian markets extended the previous session's losses on Wednesday,weighed down by QE tapering worries after comments from two Federal Reserve

officials suggested the U.S. central bank might start reducing stimulus as early as

the September policy meeting.

Markets TodayThe trend deciding level for the day is 18,676/ 5,522 levels. If NIFTY trades above

this level during the first half-an-hour of trade then we may witness a further rally

up to 18,800 18,936 / 5,558 5,597 levels. However, if NIFTY trades below

18,676 / 5,522 levels for the first half-an-hour of trade then it may correct up to

18,540 18,416 / 5483 5,448 levels.

Indices S2 S1 PIVOT R1 R2SENSEX 18,416 18,540 18,676 18,800 18,936

NIFTY 5,448 5,483 5,522 5,558 5,597

News Analysis

Result Review: Tata Motors, Lupin, NMDC, GSK Pharmaceutical, CadilaHealthcare, Ranbaxy Labs, Apollo Tyres, MOIL, Alembic Pharmaceutical,Gujarat Gas, NCC, Unity Infraprojects

Result Preview: Sun Pharmaceuticals, Cipla, Aurobindo Pharmaceuticals,Bharat Forge, IRB Infra, ITNLRefer detailed news analysis on the following page

Net Inflows (August 6, 2013)` cr Purch Sales Net MTD YTDFII 3,269 2,912 357 1,229 66,626

MFs 382 854 (472) (639) (14,985)

FII Derivatives (August 7, 2013)` cr Purch Sales Net Open InterestIndex Futures 2,991 3,526 (535) 11,094

Stock Futures 2,442 2,463 (22) 26,302

Gainers / LosersGainers Losers

Company Price (`) chg (%) Company Price (`) chg (%)Hindustan Copper 57 18.4 MCX 299 (10.0)

Strides Arco 811 16.8 Lupin 828 (6.5)

Unitech 17 14.7 Shree Cement 3,836 (5.5)

Adani Power 34 10.5 Wockhardt 362 (5.0)

HDIL 30 9.7 Apollo Tyres 60 (4.5)

Domestic Indices Chg (%) (Pts) (Close)BSE Sensex (0.4) (68) 18,665

Nifty (0.4) (23) 5,519

MID CAP 0.7 36 5,337

SMALL CAP 1.3 65 5,166

BSE HC (0.4) (35) 8,828

BSE PSU 2.4 121 5,179

BANKEX 0.5 57 11,139

AUTO (1.5) (149) 10,076

METAL 3.3 214 6,681

OIL & GAS 2.8 224 8,362

BSE IT (1.6) (121) 7,427

Global Indices Chg (%) (Pts) (Close)Dow Jones (0.3) (48) 15,471NASDAQ (0.3) (12) 3,654

FTSE (1.4) (93) 6,511

Nikkei (4.0) (576) 13,825

Hang Sang (1.5) (335) 21,589

Straits Times 0.2 5 3,230

Shanghai Com (0.7) (14) 2,047

Indian ADR Chg (%) (Pts) (Close)INFY (1.2) (0.6) $48.5

WIT (0.3) (0.0) $8.9IBN (0.9) (0.3) $30.9

HDB (1.9) (0.6) $31.0

Advances / Declines BSE NSEAdvances 1,248 776

Declines 1,044 506

Unchanged 140 98

Volumes (` cr)BSE 1,879

NSE 12,346

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Result Review

Tata Motors(CMP:`279/ TP: Under Review/ Upside: NA)Tata Motors (TTMT) reported an in-line operating performance for 1QFY2014

largely led by strong Jaguar and Land Rover (JLR) performance. However, adjusted

bottom-line at `1,905cr was significantly lower than our estimates of `2,683cr

owing to sharp increase in interest (up 17.9% yoy) and depreciation expense (up

49.9% yoy) and also due to significantly higher tax-rate (39.8% as against 27.3%

in 1QFY2013).

The consolidated top-line registered a healthy growth of 8% yoy to `46,785cr, in-

line with our estimates of`46,989cr, driven by a strong top-line growth of 13.3%

yoy at JLR. The JLR performance was driven by a healthy volume and net average

realization growth of 8.6% yoy and 4.4% yoy respectively. The JLR volume growth

was primarily driven byJaguar (up 57.8% yoy) on the back of the new launches (F-

type and AWD and smaller engine options forXF andXJ andXF Sportbrake). Land

Rover sales however, remained flat yoy and were impacted mainly due to the

phasing out of the old Range Rover Sport ahead of the introduction of the new

Range Rover Sport. The standalone top-line posted a significant decline of 14% yoy

following 18.9% yoy decline in volumes.

On the operating front, consolidated EBITDA margins stood at 13.3% (flat yoy),

broadly in-line with our estimates of 13.5%. The benefit of softening of commodity

prices was mitigated by sharp increase in staff cost and other expenditure. The

performance was led by JLR with EBITDA margins at 16.5%, ahead of our

expectations of 15.4% and driven by richer product-mix and favorable exchange

rate movement. The standalone operations on the other hand continued to witness

margin pressures (down 83bp qoq to 1.2%) on account of increased discounts and

marketing spends in the passenger and medium and heavy commercial vehicle

businesses and lower utilization levels. Adjusted net profit declined 29.1% yoy

despite an 8.1% increase in operating profit primarily due to increase in

depreciation and interest expense and also due to higher tax-rate. JLR bottom-line

grew strongly by 28.9% yoy to 304mn driven by strong operating performance

partially offset by higher depreciation expense as well as higher finance expense.

The standalone adjusted bottom-line stood at `857cr aided by other income of

`1,621cr (as against `447cr in 1QFY2013) boosted by dividend income of

150mn from JLR. Adjusting for the JLR dividend income, standalone adjusted

bottom-line posted a loss of over`

400cr, higher than our expectations of a loss of`270cr.

We retain our positive view on Tata Motors on the back of the expected strong

performance of JLR driven by the new product launches and the success of the

models launched in 4QFY2013. We shall release a detailed result note soon. Thestock rating and target price is currently Under Review.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 215,016 13.3 11,870 36.2 24.6 7.7 1.7 3.6 0.4

FY2015E 237,404 13.6 13,786 41.5 23.2 6.7 1.4 3.1 0.4

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Lupin (CMP:`828/ TP:`878/ Upside: 6.1%)

Lupin, posted lower than expected sales growth during the period. The company

posted sales of `2421cr V/s expectations of`2910cr, registering a yoy growth of9.1%.The growth during the period was impacted by the domestic formulation

business which contributes 24% of the sales, declined by 5% yoy. The key regionUS & Europe which together contributed 46% of sales, increased by 29% yoy.

Japan on the other hand dipped 12% during the period. Its OPM, on the other

expanded by 300bps to end the period at 22.1% V/s expectations of 21.2%. The

margin expansion was aided by the gross margin expansion of 80bps and, a dip

in the other expenditure. This along with the higher other income during the period

which was at`156.5cr v/s.`58.2cr (in1QFY2013) aided the net profit to come in

at `401.1cr V/s expectation of `367.3cr, registering a yoy growth of 43.0%. Werecommend an Accumulate rating on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 11,641 21.3 1,553 34.8 26.2 23.7 5.6 15.1 3.2

FY2015E 13,933 21.3 1,866 41.8 24.8 19.8 4.4 12.3 2.6

NMDC (CMP:`100/ TP:`123/ Upside: 23%)

NMDC reported better than expected 1QFY2014 results both on top-line and

profitability front due to better than expected realizations. NMDCs net sales

increased by 1.1% yoy to`2,871cr (above our estimates of`2,695cr) mainly due

to higher volumes which increased 6.8% yoy to 7.3mn tonnes. However, its

realizations decreased 5.6% yoy to `3,907/tonne, although above our

expectations. EBITDA/tonne decreased by 19.8% yoy to `2,715 due to lower

realizations and EBITDA declined by 14.4% yoy to `1,971cr. Other income

declined by 5.7% yoy to `521cr and tax rate was also higher at 34.2% in

1QFY2014 compared to 32.4% in 1QFY2013. Consequently, adjusted net profit

decreased by 14.1% yoy to `1,638cr (above our estimate of `1,540cr). Wemaintain our Buy rating on the stock with a target price of `123.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 10,610 66.3 6,165 15.6 21.3 6.4 1.3 2.4 1.6

FY2015E 11,400 64.2 6,366 16.1 19.9 6.2 1.2 2.3 1.5

GSK Pharmaceutical (CMP:`2,392/ TP: -/ Upside: -)

GSK Pharmaceutical, reported lower than expected numbers during the period.

The sales declined by 2.3% during the period to end at `637cr, V/s expectation of

`662cr. Its OPMs also witnessed a sharp dip during the quarter, ending the

period at 17.8%, a yoy dip of 13.3%, on account of contraction in gross margins

of 490bps, and high rise in employee and other expenses which rose by 25.7%

and 29.0% yoy. This lead the reported net profit to come in at `115cr V/s

`163.6cr in 2QCY2012, a dip of 29.7%. However, the adj. net profit came in at

`102cr V/s `144.3cr expected, posting a dip of 37.8%.We remain neutral on thestock.

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Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesDec (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)CY2013E 2,859 28.6 649 76.6 31.1 31.2 9.3 21.8 6.2

CY2014E 3,145 28.6 706 83.3 31.0 28.7 8.5 19.5 5.6

Cadila Healthcare (CMP:`746/ TP:`929/ Upside: 24.5%)

Cadila reported numbers, lower than expected for the quarter. On the sales front,

the company posted a 6.0% growth on the topline to end the period at`1,608cr,

V/s expectations of `1,820cr. The growth in the topline was subdued, as both

exports and domestic sales posted mute growth during the period. While the

domestic sales grew by 8.6% yoy, while exports grew by 5.0% yoy. On the

operating front, the margins while dipped by 168bps yoy came ahead of

expectations of 15.7%. While the other income came in lower than the expected,

the lower than expected interest expenses and taxations lead the net profit come in

at `196cr V/s expectations of `237cr during the period, posting a flat 0.5% yoygrowth during the period. We maintain our buy on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 7,280 15.5 785 38.3 23.5 19.5 4.2 15.3 2.4

FY2015E 8,640 15.7 951 46.5 23.5 16.5 3.4 12.6 2.0

Ranbaxy Labs (CMP:`282/ TP:`384/ Upside: 36.2%)

Ranbaxy labs reported numbers lower than expected during the quarter. The net

sales came in at`2,663.3cr a decline of 17.8% in sales. This was much lower thanexpectation of `2,850cr during 2QCY2013.However excluding the exclusivities,

the base business clocked a double digit growth during the period.

The growth was mainly lead by the branded business Emerging business of LATAM

and branded business of Africa, APAC and Russia Indian sales during the period

came in flat, on back of the new drug policy. With this the branded and OTC part

of business contributes 51% of sales of the company in 2QCY2013.On the

operating front, the OPM come in at 6.3% lower than our expectations of 10.5%

and 14.4% in 2QCY2012. However, higher than expected other income and lower

tax during the quarter aided the adj. net profit came in at `135cr V/s `148cr

during the corresponding period of last year. On back of attractive valuations, wemaintain our buy on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 11,400 10.5 744 17.5 17.0 16.1 2.6 9.0 1.0

FY2015E 12,060 12.5 956 22.5 19.0 12.5 2.2 7.0 0.9

MOIL Ltd (CMP:`186/ TP: Under review/ Upside: -)

MOILs 1QFY2014 profitability was ahead of our expectation whereas the top-line

was broadly in line with our expectations. Net sales decreased by 1.5% yoy to

`239cr (in-line with our estimate of`241cr) however, EBITDA increased by 14.0%

yoy to`117cr and EBITDA margin expanded by 666bps yoy to 48.8% due to lower

costs. Other income increased by 17.4% yoy to`61cr and therefore the Net profit

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increased by 12.7% yoy to `112cr which was above our estimate of `104cr.

Looking ahead, although we estimate MOILs sales volumes to increase only

modestly during FY2013-15, we believe the valuations are attractive at 1.6x

FY2014 EV/EBITDA. Net cash per share of`136/share (~73% of its market cap)

as on March 31, 2013 is likely to limit any meaningful downside in our view. Wemaintain our Buy rating on the stock but keep our target price under review.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 908 38.9 388 23.1 13.4 8.1 1.0 1.7 0.7

FY2015E 939 38.6 393 23.4 12.4 8.0 0.9 1.3 0.5

Apollo Tyres(CMP:`60/ TP: -/ Upside: -)Apollo Tyres (APTY) reported strong results for 1QFY2014 beating our estimates

on the top-line as well bottom-line front. The consolidated top-line grew 0.8% yoy

(5% qoq) to`3,190cr, slightly ahead of our estimates of`3,091cr. The growth was

led by a strong revenue growth of 11% yoy in Europe. The standalone operations

reported a growth of 0.7% yoy as against our expectations of a decline of ~2%.

On the operating front, EBITDA margins expanded 62bp sequentially (123bp yoy)

to 12.3%, beating our estimates of 11.5%, and were driven primarily on account

of softening of raw-material prices. The expansion of margins on a sequential

basis surprised positively given that the company had reduced the tyre prices by 1-

2% in 4QFY2013. Led by a strong operating performance, consolidated net profit

grew robustly by 19% yoy to `165cr, beating our expectations of `123cr. On a

standalone basis, the EBITDA margins declined 35bp qoq (up 144bp yoy) to

11.7% slightly lower than our expectations of 12%. Nevertheless, led by 60.6% yoyincrease in other income, standalone net profit surged 24.3% yoy to `94cr. Thestock rating is currently Under Review. We shall come up with a detailed resultnote soon.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 13,852 11.4 647 12.8 17.5 4.9 0.8 3.2 0.4

FY2015E 15,487 11.5 750 14.9 17.3 4.2 0.7 2.9 0.3

Alembic Pharmaceutical (CMP:`154/ TP: -/ Upside: -)

Alembic Pharmaceutical posted numbers in line with expectations. The sales came

in at `426cr, tad lower than the expectations of `434cr, registering a growth of

16.4% yoy. The growth was lead by the exports, which grew by 41.5% yoy,

contributing around 43% of the overall sales of the company. The domestic

markets on the other hand grew by only 6.0% yoy. The growth in the domestic

markets was impacted on back of the dip in the API sales, which dipped by 33.8%.

The domestic formulations on the other hand grew by 12% yoy during the period.

In spite of the same the OPM, came in at 16.7% V/s expectations of 15.7%, mainly

on back of the gross margin expansion, which came in at 59.5% V/s 52.3% in

1QFY2013, on back of improved sales mix. The formulations contributed around

75% of the sales mix in 1QFY2014 V/s 68% in 1QFY2013.

The key expenditure which restricted a significant expansion in the OPM in

comparison to the gross margin expansion was R&D and other expenditure. R&D

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expenses during the quarter was 5.3% V/s 3.8% in 1QFY2013, while the other

expenditure grew by 29.4% yoy during the period. This lead the net profit to come

in at `46.6cr V/s expectations of `46.4cr, registering a growth of 51.3% yoy.

However, on back of valuations, we maintain our neutral stance on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 1,736 17.1 202 10.7 35.014.3 4.5 10.2 1.7

FY2015E 2,008 18.9 262 13.9 34.711.0 3.4 7.8 1.5

Gujarat Gas (CMP:`162/ TP: -/ Upside: -)

Gujarat Gas reported mixed set of 2QCY2013 results. The companys top line

decreased 2.6% yoy to`747cr mainly on account of lower volumes. Natural gas

volume sold declined by 9.5% yoy to 239mmscm during the quarter. The decline

was mainly in the industrial PNG segment. The companys cost of goods sold

decreased by 14.5% yoy to`542cr on account of fall in the price of RLNG. Hence,

EBITDA increased by 87.9% yoy to`156cr. Other income also increased by 33%

yoy to `13cr. Consequently companys net profit increased by 90.6% yoy to

`101cr. We maintain our Neutral rating on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesDecember (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)CY2013E 3,765 11.7 304 23.7 29.6 6.8 1.9 3.2 0.4

CY2014E 3,910 12.4 330 25.7 28.2 6.3 1.7 2.7 0.3

NCC (CMP:`19/ TP: Under review/ Upside: -)

NCC posted poor set of numbers for 1QFY2014 below our and street

expectations. The poor performance in slow execution and lower profitability was

primarily due to slower order inflows and high interest expense during the quarter.

On the top line front, NCC reported a decline of 6.3% yoy to`1,379cr, which was

significant lower than our estimate of `1,511cr. On the EBITDAM front, the

companys EBITDA margins stood at 7.9% (down 116bp sequentially) and was

below our estimate of 8.0%. This was mainly on back of lower-than-expected

execution during the quarter. Interest cost came in at `97cr a growth of 4.3% yoy.

On the bottom line level, NCC reported PAT of`11cr (our estimate was`18cr) in

1QFY2014, indicating a decline of 36.6% yoy. This was mainly due to lower-than-

expected revenue performance, higher tax rate (39%) and high interest cost for the

quarter. The current outstanding order book of NCC stands at `18,098cr as on

1QFY2014, with order inflows of ~`1,045cr during the quarter. We continue toremain positive on the stock with Buy rating on it. The target price is currentlyunder review.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 6,044 8.0 62 2.4 2.5 7.7 0.2 6.0 0.5

FY2015E 6,533 8.0 68 2.6 2.7 7.0 0.2 6.3 0.5

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Unity Infraprojects (CMP:`20/ TP: -/ Upside-)

For 1QFY2014, Unity Infraprojects (UIP) posted better-than-expected numbers on

the revenue front; however high interest burden continues to impact the earnings

growth. On the top line front, UIP reported a growth of 6.6% yoy to`421cr, which

was above our estimate of`408cr. On the EBITDAM front, the companys EBITDAmargins stood at 12.4% (down 115bp on a yoy basis), which were below our

estimate of 13.5%. Interest cost came in at `39cr in 1QFY2014, registering a

growth of 32.6% yoy. On the bottom line level, UIP reported a decline of 26.5%

yoy to`13cr against our estimate of`15cr owing to high interest expense (at 9.3%

of revenues). On the back of slower-than-anticipated order inflows, we continue tomaintain Neutral rating on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 2,146 13.7 81 11.0 9.3 1.8 0.2 4.4 0.6

FY2015E 2,339 13.8 85 11.5 9.0 1.7 0.2 4.3 0.6

Result Preview

Sun Pharmaceuticals (CMP:`524/ TP: -/ Upside: -)

For 1QFY2014, Sun Pharma is likely to clock 27.1% yoy growth on the sales front,

led by both exports and domestic sales. The operating profit margin (OPM) for the

company would decline by around 640bp yoy to around 39.4%. The net profit is

likely to grow to 20.8% yoy during the quarter. We maintain our neutral on thestock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 7,280 15.5 785 38.3 23.5 31.7 6.4 18.7 7.6

FY2015E 8,640 15.7 951 46.5 23.5 26.3 5.3 15.4 6.3

Cipla (CMP:`391/ TP:`477/ Upside: 21.9%)

Cipla is expected to post a net sales growth of 10.2% to `2,113cr. Its OPM

(excluding technical know-how fees) is expected to come in at 22.2%, down by

380bp from the last corresponding period. This is expected to aid the net profit to

dip by 8.4% yoy to`367cr. We maintain our buy on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 7,280 15.5 785 38.3 23.5 18.6 3.0 14.5 3.3

FY2015E 8,640 15.7 951 46.5 23.5 16.4 2.6 12.1 2.8

Aurobindo Pharmaceuticals (CMP: `158/ TP: `237/ Upside:

50.0%)

Aurobindo Pharma is expected to post a net sales growth of 38.7% yoy. Themargins are likely to expand to 16.2% vs. 10.3% in 1QFY2013, which will lead the

net profit of`182cr vs.`79cr in 1QFY2013. We maintain our buy on the stock.

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Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 7,280 15.5 785 38.3 23.5 9.1 1.5 7.0 1.1

FY2015E 8,640 15.7 951 46.5 23.5 7.7 1.2 5.9 0.9

Bharat Forge(CMP:`198/ TP: -/ Upside: -)

Bharat Forge (BHFC) is slated to announce its 1QFY2014 results today. On a

standalone basis, we expect the company to report a ~22% yoy decline in

revenues to `727cr, following a ~24% yoy decline in volumes (tonnage terms).

The volume is expected to decline due to continued weakness in the domestic and

export markets (mainly the US and Europe). We expect operating margins to

decline sharply by ~290bp yoy to 22.2%, largely on account of lower utilization

levels, which is likely to result in an ~37% yoy decline in the company's bottom-

line to `66cr. At `198, the stock is trading at 11.5x its FY2015E earnings.

Currently, we have a Neutral rating on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 6,198 14.6 338.5 14.5 13.6 13.6 1.8 5.8 0.8

FY2015E 6,793 14.9 403.0 17.3 14.7 11.5 1.6 5.0 0.7

IRB Infra (CMP:`70/ TP:`105/ Upside: 50%)

IRB Infrastructure Developers (IRB) is expected to post a mixed performance for the

quarter. We expect E&C segment revenues to decline by 19.4% yoy to `605cr, as

Jaipur-Deoli and Talegaon-Amravati road BOT projects are near completion

(~95% complete) and hence, will contribute meagerly to E&C revenue. However,

the BOT segment is expected to report a healthy 45% yoy growth to `378cr,

leading to a modest top-line growth of 0.4% to `983cr. We expect the blended

EBITDA margin to be at 44.8%, a growth of 137bp yoy. Depreciation for the

quarter is expected to jump 36.3% yoy, owing to commissioning of the Jaipur-

Deoli and Talegaon- Amravati project. We project net profit before tax and after

tax (post minority interest) at `156cr and `111cr, respectively, after factoring a

blended tax rate of 29% for the quarter. We recommend Buy on the stock withtarget price of `105.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 3,997 45.5 586 17.6 16.9 4.0 0.6 5.9 2.7

FY2015E 4,312 46.4 588 17.7 15.1 3.9 0.6 6.5 3.0

ITNL (CMP:`109/ TP:`150/ Upside: 38%)

We expect IL&FS Transportation Networks (ITNL) to post a mixed set of numbers

for the quarter, with decent performance on the revenue front, but muted show at

the earnings level, owing to high interest cost. The company's consolidated

revenue is expected to grow by 6.0% yoy to`

1,675cr for 1QFY2014. We expectthe company to register an EBITDAM of 27.4%. Further, on the back of higher

interest cost, which is expected to come in at`313cr, we expect ITNL's earnings to

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decline by 13.2% yoy to `106cr. We recommend Buy rating on the stock withtarget price of `150.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 7,423 27.7 608 31.3 15.5 3.5 0.5 8.7 2.4FY2015E 7,970 27.8 566 29.2 12.8 3.7 0.5 8.9 2.5

Quarterly Bloomberg Consensus Estimate

Adani Enterprise Consolidated (08/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 12,704 11,025 15.2 11,472 10.7

EBITDA 1,896 1,080 75.6 1,550 22.3

EBITDA margin (%) 14.9 9.8 13.5

Net profit 308 403 (23.6) 474 (35.0)

Bharat Forge (08/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 715 916 (21.9) 660 8.3

EBITDA 151 235 (35.7) 142 6.0

EBITDA margin (%) 21.1 25.7 21.6

Net profit 55 105 (47.6) 50 10.0

Rural Electrification (08/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net profit 1,035 877 18.0 960 7.8

ABB (09/08/2013)Particulars (` cr) 2QCY13E 2QCY12 y-o-y (%) 1QCY13 q-o-q (%)Net sales 1,993 1,859 7.2 1,953 2.0

EBITDA 118 106 11.3 107 10.3

EBITDA margin (%) 5.9 5.7 5.5

Net profit 57 52 9.6 43 32.6

Cipla (09/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 2,141 1,917 11.7 1,906 12.3

EBITDA 500 540 (7.4) 410 22.0

EBITDA margin (%) 23.4 28.2 21.5

Net profit 339 401 (16.0) 268 25.7

Sun Pharmaceutical Consolidated (09/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 3,318 2,658 24.8 3,072 8.0

EBITDA 1,441 1,242 16.0 1,275 13.0

EBITDA margin (%) 43.4 46.7 41.5Net profit 919 796 15.5 1,012 (9.2)

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DLF Consolidated (12/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 2,063 2,198 (6.1) 2,226 (7.3)

EBITDA 766 1,067 (28.2) 726 5.5

EBITDA margin (%) 37.1 48.5 32.6

Net profit 118 293 (59.7) (4) (3,050.0)

HPCL (12/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 49,962 44,077 13.4 61,238 (18.4)

EBITDA (1,430) (8,455) (83.1) 6,635 (121.6)

EBITDA margin (%) (2.9) (19.2) 10.8

Net profit (2,196) (9,249) (76.3) 7,679 (128.6)

ONGC (12/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 20,175 20,084 0.5 21,389 (5.7)

EBITDA 10,492 9,930 5.7 5,995 75.0

EBITDA margin (%) 52.0 49.4 28.0

Net profit 5,096 6,078 (16.2) 3,389 50.4

State Bank of India (12/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net profit 3,463 3,752 (7.7) 3,299 5.0

Economic and Political News

Direct tax collection rises 10% in first four months of 2013-14 Economy is likely to grow at 5.5% growth this fiscal: Montek Imported packaged food export norms to be relaxed Indian retail market to touch US$1.3tn by 2020: K V Thomas, Consumer

Affairs Minister

Corporate News

BHEL wins`265cr order from BPCL for Kochi Refinery project Emami to invest`1,000cr in cement, hospital biz in Bengal L&T bags`646.56cr lift irrigation contract in Odisha Lupin bags exclusive US rights for diarrhoea drug NMDC slashes iron ore lump price by`200/tonne; fines unchanged RBI imposes`5.6lakh fine on SBI for violation of norms TCS deploys its core banking solutions for Panzhihua (PZH) Commercial Bank

Source: Economic Times, Business Standard, Business Line, Financial Express, Mint

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Date Company

August 08, 2013Adani Enterp., Rural Elec.Corp., Bharat Forge, IRB Infra, ITNL, Page Industries, BGR Energy , Prakash Industries, ITDCementation

August 09, 2013 Sun Pharma, Cipla, ABB, Aurobindo Pharma, TVS Motor, Automotive Axle, Finolex Cables, Goodyear

August 10, 2013 Sarda Energy

August 11, 2013

August 12, 2013ONGC, St Bk of India, DLF, HPCL, Marico, Tech Mahindra, Indraprasth Gas, Britannia, United Bank, India Cements,Jyothy Laboratories

August 13, 2013 IOC, M&M, Tata Steel, Hindalco, BPCL, GMR Infra., GSPL, Sadbhav Engg., IVRCL Infra, Cravatex

August 14, 2013SAIL, Nalco, LIC Housing Fin., Essar Oil, Bhushan Steel, HDIL, Monnet Ispat, Amara Raja Batteries, Anant Raj, OrchidChemicals, Simplex Infra, Electrosteel Castings, Patel Engg., Madhucon Proj, JK Tyre, Abbott India

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Time Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

August 8, 2013 6:00PM US Initial Jobless claims Thousands Aug 3 326.00 335.00

4:29PM China Exports YoY% % Change Jul (3.10) 2.00

August 9, 2013 7:00AM China Consumer Price Index (YoY) % Change Jul 2.70 2.80

11:00AM China Industrial Production (YoY) % Change Jul 8.90 8.90

August 12, 2013 4:29PM India Imports YoY% % Change Jul (0.37) --

4:29PM India Exports YoY% % Change Jul (4.60) --

5:30PM India Industrial Production YoY % Change Jun (1.60) (0.80)

August 13, 2013 2:00PM UK CPI (YoY) % Change Jul 2.90 --

August 14, 2013 2:00PM UK Jobless claims change % Change Jul (21.20) --

11:30AM Germany GDP nsa (YoY) % Change 2Q P (1.40) --12:00PM India Monthly Wholesale Prices YoY% % Change Jul 4.86 5.00

2:30PM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 2Q A (0.30) --

6:00PM US Producer Price Index (mom) % Change Jul 0.80 0.40

August 15, 2013 6:00PM US Consumer price index (mom) % Change Jul 0.50 0.20

6:45PM US Industrial Production % Jul 0.31 0.25

August 16, 2013 6:00PM US Housing Starts Thousands Jul 836.00 900.00

6:00PM US Building permits Thousands Jul 918.00 945.00

2:30PM Euro Zone Euro-Zone CPI (YoY) % Jul F 1.60 --

August 21, 2013 7:30PM US Existing home sales Million Jul 5.08 --

August 22, 2013 1:00PM Germany PMI Services Value Aug A 51.30 --1:00PM Germany PMI Manufacturing Value Aug A 50.70 --

August 23, 2013 7:30PM Euro ZoneEuro-Zone Consumer Confidence Value Aug A (17.40) --

7:30PM US New home sales Thousands Jul 497.00 --

2:00PM UK GDP (YoY) % Change 2Q P 1.40 --

August 27, 2013 7:30PM US Consumer Confidence S.A./ 1985=100 Aug 80.30 --

August 29, 2013 6:00PM US GDP Qoq (Annualised) % Change 2Q S 1.70 --

1:25PM Germany Unemployment change (000's) Thousands Aug (7.00) --

August 30, 2013 5:30PM India Qtrly GDP YoY% % Change 2Q 4.80 --


August 08, 2013

Market Outlook

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Macro watch

Exhibit 1:Quarterly GDP trends

Source: CSO, Angel Research

Exhibit 2:IIP trends

Source: MOSPI, Angel Research

Exhibit 3:Monthly WPI inflation trends

Source: MOSPI, Angel Research

Exhibit 4:Manufacturing and services PMI

Source: Market, Angel Research; Note: Level above 50 indicates expansion

Exhibit 5:Exports and imports growth trends


Exhibit 6:Key policy rates

Source: RBI, Angel Research

9.3

7.7

11.4

9.5

8.69.2

9.9

7.5

6.56.0

5.1 5.4 5.24.7 4.8

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

(%)

(2.0)

(0.1)

2.0

(0.7)

8.4

(1.0) (0.6)

2.5

0.6

3.4

1.9

(1.6)(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

Jun-1

2

Ju

l-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

(%)

8.0 8.17.3 7.2 7.3 7.3 7.3

5.7

4.8 4.7 4.9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

(%)

48.0

50.0

52.0

54.0

56.0

58.0

Mar-

12

Apr-

12

May-1

2

Jun-1

2

Ju

l-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

Mfg. PMI Services PMI

(15.0)

0.0

15.0

Ju

l-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

Exports yoy growth Imports yoy growth(%)

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Aug-1

2

Sep-1

2

Oct-12

Nov-1

2

Dec-1

2

Jan-1

3

Feb-1

3

Mar-13

Apr-13

May-1

3

Jun-1

3

Jul-13

Repo rate Reverse Repo rate CRR (%)

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Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)

( ) Price ( ) ( cr ) FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E

Agri / Agri Chemical

Rallis Neutral 137 - 2,666 1,674 1,923 13.7 13.7 6.8 7.6 20.2 18.0 3.8 3.3 20.0 19.6 1.7 1.5

United Phosphorus Buy 127 225 5,621 10,091 11,302 16.5 16.5 19.2 22.5 6.6 5.6 1.1 0.9 17.0 17.2 0.7 0.6

Auto & Auto Ancillary

Amara Raja Batteries Buy 218 285 3,715 3,418 3,892 14.5 14.5 18.5 20.4 11.8 10.7 2.8 2.3 26.6 23.8 1.1 0.9

Apollo Tyres Neutral 60 - 3,039 13,852 15,487 11.4 11.5 12.8 14.9 4.7 4.1 0.8 0.7 17.5 17.3 0.4 0.3

Ashok Leyland Buy 12 18 3,313 13,450 15,853 6.5 8.5 0.4 1.9 32.6 6.7 1.1 1.0 2.3 11.0 0.4 0.3

Automotive Axle# Neutral 195 - 295 834 965 9.3 10.6 17.3 27.1 11.3 7.2 1.1 1.0 9.5 14.0 0.4 0.4Bajaj Auto Buy 1,771 2,102 51,253 21,696 25,239 19.2 19.3 119.3 140.2 14.9 12.6 5.2 4.2 38.9 36.6 1.9 1.6

Bharat Forge Neutral 198 - 4,615 6,198 6,793 14.6 14.9 14.5 17.3 13.6 11.5 1.8 1.6 13.6 14.7 0.9 0.7

Bosch India* Accumulate 8,450 9,096 26,532 9,301 10,895 16.8 18.0 339.9 423.1 24.9 20.0 4.1 3.5 16.6 17.6 2.5 2.1

CEAT Buy 122 170 416 5,159 5,628 9.3 9.0 43.5 48.6 2.8 2.5 0.5 0.4 18.4 17.5 0.2 0.2

Exide Industries Buy 123 148 10,447 6,899 7,873 14.7 14.7 7.9 9.0 15.5 13.6 2.7 2.3 18.3 18.0 1.2 1.0

FAG Bearings* Neutral 1,133 - 1,883 1,336 1,572 13.8 16.0 75.6 102.4 15.0 11.1 1.9 1.6 13.4 15.8 1.2 1.0

Hero Motocorp Accumulate 1,830 2,048 36,537 25,562 28,297 14.5 14.4 111.2 146.3 16.5 12.5 6.0 4.7 40.1 42.1 1.2 1.1

JK Tyre Buy 94 154 385 7,972 8,754 7.1 7.1 37.5 44.0 2.5 2.1 0.4 0.3 16.4 16.6 0.3 0.3

Mahindra and Mahindra Buy 843 1,103 51,938 45,254 51,197 11.4 11.7 61.2 70.2 13.8 12.0 2.9 2.4 22.7 21.9 0.9 0.7

Maruti Buy 1,334 1,648 40,305 45,862 52,647 11.2 11.1 94.6 109.9 14.1 12.2 1.9 1.7 14.4 14.6 0.7 0.6

Motherson Sumi Buy 208 242 12,219 28,442 31,914 8.4 8.7 13.0 16.1 16.0 12.9 4.2 3.3 29.4 28.6 0.5 0.5

Subros Buy 19 23 114 1,230 1,398 10.5 10.5 2.3 3.8 8.2 5.0 0.4 0.4 4.8 7.6 0.3 0.3

Tata Motors Buy 279 347 75,124 215,016 237,404 13.3 13.6 36.2 41.5 7.7 6.7 1.7 1.4 24.6 23.2 0.4 0.4

TVS Motor Buy 30 35 1,411 7,715 8,584 6.0 6.1 5.0 5.8 6.0 5.1 1.0 0.9 18.1 18.5 0.1 0.1

Capital Goods

ABB* Neutral 475 - 10,067 8,073 9,052 5.5 6.9 11.5 16.9 41.2 28.0 3.8 3.6 9.3 13.1 1.2 1.0BGR Energy Neutral 85 - 617 3,756 4,569 11.4 9.7 21.7 24.1 3.9 3.6 0.5 0.4 22.3 20.3 0.5 0.4

BHEL Neutral 116 - 28,368 43,140 39,692 16.8 15.9 20.2 17.1 5.7 6.8 1.2 1.1 23.1 17.2 0.5 0.6

Blue Star Buy 142 208 1,276 2,941 3,099 3.4 4.2 6.0 9.3 23.7 15.3 2.9 2.6 12.9 18.0 0.6 0.5

Crompton Greaves Buy 88 103 5,639 13,446 15,272 6.7 7.6 6.6 8.9 13.3 9.9 1.5 1.3 11.4 14.0 0.5 0.5

Jyoti Structures Neutral 17 - 136 3,312 3,555 9.0 9.0 4.5 6.5 3.7 2.6 0.2 0.2 5.6 7.7 0.3 0.3

KEC International Buy 25 36 652 7,709 8,399 6.2 6.9 5.1 8.1 5.0 3.1 0.5 0.5 16.6 21.5 0.3 0.2

Thermax Neutral 559 - 6,663 5,832 6,397 9.1 9.6 28.8 32.9 19.4 17.0 3.2 2.8 17.2 17.3 1.1 1.0

Cement

ACC Buy 1,160 1,361 21,780 11,581 13,009 17.6 19.3 63.9 81.5 18.2 14.2 2.7 2.5 15.6 18.2 1.6 1.4


Market Outlook

Stock Watch

August 08, 2013

7/27/2019 Market Outlook, 08-08-2013

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Cement

Ambuja Cements Neutral 177 - 27,379 9,975 11,409 22.4 23.1 9.4 11.1 18.9 15.9 2.9 2.6 15.7 17.2 2.2 1.8

India Cements Neutral 45 - 1,390 4,929 5,434 17.4 17.1 8.9 10.9 5.1 4.2 0.4 0.4 7.7 9.1 0.6 0.5

J K Lakshmi Cement Buy 55 79 642 2,235 2,684 19.4 21.4 15.0 18.4 3.6 3.0 0.5 0.4 13.2 14.3 0.4 0.9

Madras Cements Neutral 154 - 3,675 4,234 4,788 23.9 24.0 18.5 22.8 8.4 6.8 1.3 1.1 17.2 18.2 1.2 1.0

Shree Cement^ Neutral 3,856 - 13,434 6,607 7,520 27.5 26.7 322.8 374.3 12.0 10.3 3.0 2.4 27.8 25.6 1.4 1.0

UltraTech Cement Neutral 1,643 - 45,049 22,021 25,274 22.0 21.6 99.5 113.3 16.5 14.5 2.6 2.3 16.7 16.6 2.1 1.9

ConstructionAshoka Buildcon Buy 46 60 723 1,928 2,234 21.0 21.5 6.0 7.4 7.6 6.2 0.7 0.7 10.5 10.8 1.8 1.7

Consolidated Co Neutral 7 - 126 1,715 1,824 2.4 6.2 (2.9) (0.4) (2.3) (19.0) 0.3 0.3 0.5 0.5

IRB Infra Buy 69 105 2,308 3,997 4,312 45.5 46.4 15.7 16.6 4.4 4.2 0.6 0.6 15.2 14.5 3.0 3.3

ITNL Buy 109 150 2,113 7,444 8,041 27.4 28.9 29.8 32.1 3.6 3.4 0.5 0.5 14.9 14.2 2.4 2.4

IVRCL Infra Neutral 11 - 335 5,673 5,892 8.1 8.4 1.4 1.8 7.6 6.0 0.2 0.2 2.0 2.6 0.5 0.5

Jaiprakash Asso. Buy 31 41 6,890 12,946 14,897 24.7 25.6 1.2 2.7 25.3 11.6 0.5 0.5 2.0 4.3 2.4 2.2

Larsen & Toubro Buy 781 1,044 72,229 68,946 78,040 10.0 10.0 49.0 55.2 16.0 14.2 2.3 2.1 14.9 15.3 1.2 1.1

Nagarjuna Const. Buy 19 30 488 6,167 6,945 8.0 8.2 2.7 3.6 7.1 5.2 0.2 0.2 2.7 3.6 0.4 0.4

Punj Lloyd Neutral 24 - 797 12,726 14,226 8.2 8.2 0.9 1.0 28.0 23.5 0.3 0.3 1.0 1.2 0.6 0.6

Sadbhav Engg. Buy 69 100 1,042 2,462 2,731 10.6 10.6 5.9 6.7 11.7 10.4 1.1 1.0 10.2 10.5 0.7 0.7

Simplex Infra Neutral 50 - 248 6,308 7,033 9.5 9.6 11.9 18.7 4.2 2.7 0.2 0.2 4.5 6.7 0.5 0.5

Unity Infra Neutral 20 - 149 2,146 2,339 13.7 13.8 11.0 11.5 1.8 1.8 0.2 0.2 9.3 9.0 0.6 0.6

Financials

Allahabad Bank Neutral 70 - 3,515 6,843 7,528 2.5 2.5 26.0 30.1 2.7 2.3 0.4 0.4 11.8 12.4 - -

Andhra Bank Reduce 59 51 3,282 4,868 5,390 2.4 2.5 12.3 16.6 4.8 3.5 0.5 0.4 7.9 10.0 - -

Axis Bank Buy 1,069 1,255 50,115 19,280 22,886 3.3 3.3 130.7 157.1 8.2 6.8 1.3 1.2 17.3 18.1 - -Bank of Baroda Neutral 502 - 21,143 15,896 17,947 2.2 2.3 95.4 124.4 5.3 4.0 0.6 0.6 12.0 14.2 - -

Bank of India Neutral 172 - 10,270 14,482 16,069 2.3 2.2 55.0 62.2 3.1 2.8 0.5 0.4 13.7 13.9 - -

Bank of Maharashtra Neutral 40 - 2,646 4,529 4,780 3.0 2.8 12.3 11.8 3.3 3.4 0.5 0.5 16.5 14.1 - -

Canara Bank Neutral 247 - 10,935 11,454 12,378 2.0 2.0 52.4 60.5 4.7 4.1 0.5 0.5 9.8 10.4 - -

Central Bank Neutral 55 - 5,756 8,196 9,202 2.4 2.4 6.1 15.9 9.1 3.5 0.7 0.6 5.2 12.8 - -

Corporation Bank Neutral 272 - 4,152 5,641 6,083 2.0 2.0 82.7 98.1 3.3 2.8 0.4 0.4 12.6 13.5 - -

Dena Bank Neutral 47 - 1,651 3,307 3,531 2.2 2.4 17.5 21.6 2.7 2.2 0.3 0.3 11.9 13.2 - -

Federal Bank Neutral 334 - 5,717 2,798 3,250 3.0 3.0 38.1 51.9 8.8 6.4 0.8 0.8 9.8 12.3 - -


Market Outlook

Stock Watch

August 08, 2013

7/27/2019 Market Outlook, 08-08-2013

15/20



Financials

HDFC Accumulate 729 830 113,358 8,679 10,350 3.6 3.6 37.5 44.7 19.4 16.3 4.1 3.6 30.1 30.7 - -

HDFC Bank Buy 601 745 143,660 27,392 33,264 4.6 4.6 36.3 45.1 16.6 13.3 3.4 2.8 21.9 22.8 - -

ICICI Bank Buy 868 1,038 100,199 25,727 29,969 3.2 3.2 83.2 96.7 10.4 9.0 1.4 1.3 14.9 15.4 - -

IDBI Bank Neutral 59 - 7,803 9,518 10,468 2.0 2.0 15.5 22.1 3.8 2.7 0.4 0.3 10.2 13.3 - -

Indian Bank Neutral 72 - 3,096 5,940 6,396 2.7 2.7 24.9 32.9 2.9 2.2 0.3 0.3 10.3 12.4 - -

IOB Neutral 40 - 3,669 7,692 8,627 2.2 2.3 8.1 15.2 4.9 2.6 0.3 0.3 5.9 10.5 - -

J & K Bank Neutral 1,038 - 5,033 3,038 3,370 3.7 3.9 214.2 202.6 4.9 5.1 0.9 0.8 19.8 16.3 - -LIC Housing Finance Neutral 166 - 8,360 2,180 2,732 2.4 2.5 26.3 32.1 6.3 5.2 1.1 1.0 19.0 19.9 - -

Oriental Bank Neutral 143 - 4,158 6,918 7,459 2.6 2.5 46.7 52.5 3.1 2.7 0.4 0.3 10.8 11.1 - -

Punjab Natl.Bank Neutral 533 - 18,828 20,766 23,515 3.4 3.4 135.0 164.8 3.9 3.2 0.6 0.5 14.4 15.7 - -

South Ind.Bank Neutral 20 - 2,734 1,800 2,023 2.7 2.7 3.7 4.2 5.5 4.9 0.9 0.8 16.2 16.2 - -

St Bk of India Neutral 1,714 - 117,213 66,417 76,734 3.0 3.0 227.4 284.8 7.5 6.0 1.1 1.0 15.4 17.1 - -

Syndicate Bank Neutral 73 - 4,376 6,740 7,512 2.5 2.5 21.0 23.5 3.5 3.1 0.4 0.4 12.6 12.8 - -

UCO Bank Neutral 56 - 4,226 6,770 7,017 2.8 2.6 14.8 15.5 3.8 3.6 0.6 0.5 14.4 13.5 - -

Union Bank Neutral 118 - 7,018 10,458 11,809 2.5 2.5 32.0 40.6 3.7 2.9 0.5 0.4 11.6 13.4 - -

United Bank Neutral 34 - 1,289 3,386 3,884 2.3 2.5 12.4 20.0 2.8 1.7 0.3 0.3 10.0 14.7 - -

Vijaya Bank Neutral 37 - 1,851 2,718 2,941 1.8 1.9 7.0 9.0 5.3 4.2 0.4 0.4 8.2 9.8 - -

Yes Bank Neutral 293 - 10,531 4,417 5,486 2.7 2.8 42.9 49.5 6.8 5.9 1.5 1.2 23.9 22.8 - -

FMCG

Asian Paints Neutral 424 - 40,636 12,332 14,524 16.3 16.1 13.9 16.0 30.5 26.4 9.7 7.7 35.2 32.5 3.2 2.7

Britannia Neutral 703 - 8,410 6,417 7,502 6.1 6.3 21.3 25.5 33.0 27.6 10.7 8.6 35.7 34.6 1.3 1.1

Colgate Neutral 1,258 - 17,111 3,588 4,130 20.5 20.9 44.2 51.8 28.5 24.3 27.7 20.2 108.6 96.2 4.6 3.9

Dabur India Neutral 158 - 27,480 7,183 8,297 16.8 16.9 5.4 6.3 29.5 25.1 10.4 8.2 39.2 36.7 3.9 3.3

GlaxoSmith Con* Neutral 3,998 - 16,814 3,617 4,259 16.1 16.4 122.2 148.7 32.7 26.9 10.2 8.2 34.1 33.7 4.2 3.5

Godrej Consumer Neutral 849 - 28,898 7,801 9,017 16.2 15.9 25.1 29.7 33.8 28.6 7.3 6.0 24.9 24.2 3.8 3.3

HUL Neutral 603 - 130,444 28,415 31,962 13.6 14.1 16.7 18.2 36.2 33.2 34.7 25.2 112.2 88.1 4.5 3.9

ITC Neutral 323 - 255,189 34,294 39,991 36.8 37.0 11.3 13.3 28.6 24.2 9.4 7.6 36.1 34.9 7.1 6.0

Marico Neutral 202 - 13,000 5,273 6,044 14.8 14.9 7.3 8.7 27.8 23.3 5.4 4.5 21.4 21.0 2.5 2.2

Nestle* Neutral 4,965 - 47,872 9,447 10,968 22.1 22.3 127.5 154.1 39.0 32.2 19.5 14.1 57.7 50.7 5.1 4.3

Tata Global Neutral 142 - 8,775 8,069 8,957 9.8 9.7 7.8 8.6 18.1 16.5 2.2 2.1 9.5 9.7 1.1 0.9


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IT

HCL Tech^ Accumulate 906 1,012 63,154 30,698 33,933 22.1 21.5 65.3 69.8 13.9 13.0 3.5 2.9 26.5 23.0 1.8 1.6

Hexaware* Neutral 118 - 3,524 2,213 2,479 21.5 20.5 12.1 12.9 9.7 9.1 2.4 2.1 25.4 23.5 1.4 1.2

Infosys Neutral 2,955 - 169,713 47,001 51,196 26.2 26.4 171.3 189.4 17.3 15.6 3.5 3.0 20.4 19.3 3.0 2.6

Infotech Enterprises Accumulate 179 190 1,994 2,052 2,263 17.2 17.6 20.7 22.5 8.6 7.9 1.3 1.1 14.9 14.0 0.6 0.5

KPIT Cummins Accumulate 131 145 2,525 2,670 3,018 17.3 16.7 14.1 15.3 9.3 8.6 1.8 1.5 20.9 18.4 0.9 0.7

Mindtree Accumulate 979 1,050 4,068 2,768 3,006 19.7 19.9 103.1 105.3 9.5 9.3 2.3 1.8 24.8 20.3 1.2 1.0

Mphasis& Neutral 408 - 8,573 6,372 6,852 18.0 18.2 38.0 43.5 10.7 9.4 1.5 1.3 14.3 14.2 0.9 0.7NIIT Reduce 16 15 265 1,144 1,267 9.0 9.1 4.3 5.4 3.7 3.0 0.4 0.4 10.3 12.0 - -

Persistent Accumulate 520 568 2,079 1,533 1,715 22.2 22.5 49.2 56.8 10.6 9.2 1.7 1.5 16.4 16.1 1.0 0.8

TCS Accumulate 1,820 2,060 356,156 79,005 91,576 29.7 30.0 88.6 103.1 20.5 17.7 6.5 5.2 31.5 29.2 4.3 3.6

Tech Mahindra Accumulate 1,229 1,390 28,541 8,102 8,709 19.7 19.2 107.5 117.0 11.4 10.5 2.4 2.0 21.2 18.9 3.5 3.2

Wipro Neutral 450 - 110,913 42,196 45,890 21.0 21.6 28.3 31.2 15.9 14.4 3.3 2.8 20.7 19.4 2.2 1.9

Media

D B Corp Buy 248 302 4,546 1,783 1,968 25.2 26.8 14.6 17.2 17.0 14.4 4.4 3.8 23.9 24.2 2.4 2.2

HT Media Buy 95 117 2,232 2,205 2,380 15.1 15.6 8.3 9.3 11.4 10.3 1.4 1.3 11.6 11.6 0.7 0.5

Jagran Prakashan Buy 86 116 2,859 1,683 1,845 22.3 23.7 6.5 7.8 13.2 11.1 2.7 2.4 21.3 23.1 1.8 1.6

PVR Neutral 353 - 1,402 1,359 1,540 17.3 17.4 17.2 21.6 20.5 16.4 2.0 1.9 10.3 12.0 1.5 1.3

Sun TV Network Neutral 416 - 16,376 2,287 2,551 69.7 70.5 20.0 23.3 20.8 17.8 5.1 4.5 26.4 27.3 6.8 6.0

Metals & Mining

Bhushan Steel Neutral 461 - 10,433 13,794 17,088 30.9 33.5 49.3 66.6 9.4 6.9 1.0 0.9 11.3 13.5 2.4 1.9

Coal India Neutral 263 - 165,962 70,158 74,443 29.8 30.2 25.2 27.1 10.4 9.7 2.6 2.2 33.3 33.1 1.5 1.4

Electrosteel Castings Buy 10 13 337 1,976 2,017 11.8 12.7 1.3 2.6 8.2 4.0 0.1 - 2.6 5.2 0.5 0.1

GMDC Buy 87 115 2,773 1,701 1,985 47.8 48.8 17.4 20.6 5.0 4.2 1.0 0.8 20.7 20.9 1.2 0.8Hind. Zinc Buy 100 120 42,295 12,389 13,093 48.5 51.7 15.2 17.0 6.6 5.9 1.1 1.0 18.5 18.0 1.2 0.8

Hindalco Neutral 87 - 16,590 89,352 93,672 8.8 9.2 13.4 15.0 6.5 5.8 0.5 0.4 7.3 7.6 0.5 0.5

JSW Steel Neutral 521 - 12,596 44,605 47,040 15.7 16.0 62.5 75.6 8.3 6.9 0.7 0.6 8.5 9.6 0.8 0.7

MOIL Buy 186 248 3,117 1,010 1,046 46.5 47.6 26.8 28.8 6.9 6.4 1.0 0.9 15.4 14.7 0.7 0.4

Monnet Ispat Buy 101 125 641 2,326 2,709 21.4 23.1 33.3 43.1 3.0 2.3 0.2 0.2 8.3 9.9 1.3 1.0

Nalco Neutral 26 - 6,675 7,656 7,988 13.1 13.5 2.6 2.6 10.2 9.9 0.6 0.5 5.5 5.5 0.3 0.3

NMDC Buy 100 120 39,627 10,610 11,400 66.3 64.2 15.6 16.1 6.4 6.2 1.3 1.2 21.3 19.9 1.6 1.5

SAIL Neutral 39 - 15,963 44,060 54,786 9.4 11.5 5.2 7.2 7.4 5.4 0.4 0.4 5.2 6.8 0.6 0.5


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Metals & Mining

Sesa Goa Buy 130 155 11,316 3,817 5,781 12.1 17.7 27.0 29.6 4.8 4.4 0.6 0.5 12.9 12.5 3.8 2.5

Sterlite Inds Buy 75 92 25,205 44,493 45,599 22.4 23.9 16.8 19.2 4.5 3.9 0.5 0.4 10.5 10.9 0.5 0.5

Tata Steel Buy 208 260 20,172 140,917 151,537 9.7 10.8 30.9 47.6 6.7 4.4 0.6 0.6 9.6 13.4 0.5 0.5

Sarda Accumulate 75 85 268 1,494 1,568 19.1 20.3 31.3 36.5 2.4 2.1 0.3 0.2 11.8 12.4 0.5 0.4

Prakash Industries Accumulate 29 33 389 2,615 2,776 12.1 12.0 9.8 10.4 3.0 2.8 0.2 0.2 6.5 6.5 0.4 0.4

Godawari Power andIspat

Buy 64 78 210 2,171 2,317 14.9 15.8 36.4 46.6 1.8 1.4 0.2 0.2 11.6 13.0 0.5 0.4

Oil & Gas

Cairn India Buy 292 364 55,833 18,403 17,925 71.9 62.1 62.1 57.4 4.7 5.1 1.0 0.8 22.6 17.8 1.8 1.6

GAIL Neutral 304 - 38,581 49,700 48,822 16.0 16.6 32.9 33.4 9.3 9.1 1.4 1.2 15.9 14.4 0.3 0.2

ONGC Buy 273 330 233,180 170,063 198,461 36.3 38.3 34.7 41.9 7.9 6.5 1.4 1.2 18.3 19.5 1.1 0.8

Reliance Industries Neutral 871 - 281,294 397,546 421,695 8.9 8.7 72.3 76.8 12.0 11.3 1.3 1.1 12.3 11.8 0.7 0.6

Gujarat Gas* Neutral 162 - 2,082 3,707 3,850 11.7 12.4 23.7 25.7 6.9 6.3 1.9 1.7 29.6 28.2 0.4 0.4

Indraprastha Gas Neutral 256 - 3,583 3,700 4,218 23.4 22.8 26.7 30.4 9.6 8.4 2.0 1.7 22.7 21.8 1.0 0.8

Petronet LNG Buy 117 135 8,790 39,449 43,315 5.3 5.9 14.1 16.9 8.3 6.9 1.7 1.4 21.7 21.9 0.3 0.3

Gujarat State PetronetLtd.

Buy 50 64 2,808 1,171 1,287 91.9 91.9 10.1 11.3 5.0 4.4 0.8 0.7 17.3 16.8 1.9 1.5

Pharmaceuticals

Alembic Pharma Neutral 154 - 2,901 1,736 2,008 17.1 18.9 10.7 13.9 14.4 11.1 4.5 3.4 35.0 34.7 1.7 1.5

Aurobindo Pharma Buy 158 237 4,595 6,641 7,637 15.9 15.9 17.3 20.6 9.1 7.7 1.5 1.2 19.5 18.9 1.1 1.0

Aventis* Neutral 2,411 - 5,553 1,682 1,917 15.6 15.6 91.9 101.7 26.2 23.7 3.7 3.7 15.6 17.1 2.8 2.3

Cadila Healthcare Buy 746 929 15,276 7,280 8,640 15.5 15.7 38.3 46.5 19.5 16.1 4.2 3.5 23.5 23.5 2.4 2.0

Cipla Buy 391 477 31,378 9,274 10,796 23.1 23.1 21.0 23.8 18.6 16.4 3.0 2.6 17.2 16.8 3.1 2.6

Dr Reddy's Accumulate 2,254 2,535 38,312 13,377 15,350 20.4 20.1 112.1 126.6 20.1 17.8 4.3 3.6 23.5 21.8 3.0 2.5

Dishman Pharma Buy 44 73 357 1,394 1,534 22.5 22.4 14.8 16.6 3.0 2.7 0.3 0.3 10.8 11.0 0.9 0.8

GSK Pharma* Neutral 2,392 - 20,261 2,854 3,145 28.6 28.6 76.6 83.3 31.2 28.7 9.4 8.5 31.1 31.0 6.2 5.6

Indoco Remedies Buy 63 78 576 747 906 15.3 15.3 5.9 7.6 10.6 8.2 1.3 1.1 12.5 14.4 1.0 0.8

Ipca labs Neutral 652 - 8,221 3,246 3,830 20.5 21.7 36.2 44.9 18.0 14.5 4.2 3.3 26.1 25.7 2.7 2.2

Lupin Neutral 828 - 37,065 11,641 13,933 21.3 21.3 34.8 41.8 23.8 19.8 5.6 4.4 26.2 24.8 3.2 2.6

Ranbaxy* Buy 282 384 11,928 11,400 12,060 10.5 12.5 17.5 22.5 16.1 12.5 2.6 2.2 17.0 19.1 1.0 0.9

Sun Pharma Neutral 524 - 108,382 13,509 15,846 41.0 41.0 16.5 19.9 31.8 26.3 6.4 5.3 22.0 22.0 7.5 6.2

Power

GIPCL Buy 55 65 832 1,444 1,482 33.4 33.0 13.7 14.8 4.0 3.7 0.5 0.4 12.3 12.0 0.7 0.4

NTPC Buy 137 163 112,551 76,734 86,680 24.5 24.3 13.4 14.5 10.2 9.4 1.3 1.1 12.8 12.7 2.2 2.0


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Real Estate

DLF Buy 131 175 23,315 8,293 9,622 36.5 36.1 5.7 6.7 22.9 19.4 0.8 0.8 3.7 4.1 4.9 4.1

MLIFE Accumulate 435 483 1,776 888 1,002 27.0 29.9 33.9 42.1 12.8 10.3 1.3 1.2 9.9 11.2 2.6 2.3

Telecom

Bharti Airtel Accumulate 327 350 130,635 83,535 92,173 32.0 33.1 9.2 12.9 35.6 25.3 2.3 2.1 6.8 8.9 2.3 2.0

Idea Cellular Neutral 153 - 50,771 25,640 28,459 26.9 27.2 4.0 4.9 38.2 31.0 3.2 2.9 8.4 9.4 2.4 2.1

Rcom Neutral 125 - 25,759 22,751 24,628 30.9 31.3 3.4 5.3 36.4 23.7 0.8 0.7 2.1 3.1 2.7 2.4

OthersAbbott India* Buy 1,348 1,659 2,865 1,863 2,081 11.8 12.4 71.2 83.0 18.9 16.3 3.8 3.2 21.6 21.5 1.3 1.0

Bajaj Electricals Buy 159 237 1,591 3,885 4,472 5.4 7.2 11.0 19.7 14.6 8.1 2.0 1.6 13.5 20.3 0.4 0.4

Cera Sanitaryware Buy 511 613 646 631 797 14.5 13.7 42.6 51.1 12.0 10.0 2.9 2.3 26.5 25.3 1.0 0.8

Cravatex Buy 269 459 70 248 284 6.5 7.3 27.2 38.2 9.9 7.0 1.6 1.3 15.7 18.5 0.4 0.4

Finolex Cables Buy 52 68 794 2,563 2,899 9.8 9.8 10.1 11.3 5.2 4.6 0.7 0.6 14.3 13.8 0.2 0.2

Force Motors Buy 252 349 328 2,304 2,649 3.1 3.6 28.0 43.7 9.0 5.8 0.3 0.3 3.1 4.7 0.1 0.1

Goodyear India* Accumulate 302 345 696 1,458 1,542 8.3 9.0 32.3 37.0 9.4 8.1 1.7 1.5 19.5 19.3 0.3 0.2

Hitachi Buy 107 153 290 1,080 1,199 8.9 9.1 18.3 19.1 5.8 5.6 1.0 0.9 19.2 17.0 0.4 0.3

Honeywell Automation* Neutral 2,327 - 2,057 1,842 2,131 7.7 7.8 111.1 130.9 20.9 17.8 2.6 2.3 13.3 13.9 1.0 0.9

IFB Agro Buy 123 156 111 491 642 12.3 13.8 35.0 50.9 3.5 2.4 0.6 0.5 18.2 21.6 0.2 0.1

ITD Cementation Buy 160 234 184 1,430 1,573 11.1 11.0 19.1 26.9 8.4 6.0 0.4 0.4 5.4 7.1 0.5 0.5

Jyothy Laboratories Buy 160 199 2,648 1,220 1,476 13.3 13.6 5.5 9.0 28.9 17.7 3.3 3.0 12.1 17.7 2.5 2.0

MRF Buy 12,838 16,218 5,445 11,799 12,587 14.1 13.5 1,792.0 1,802.0 7.2 7.1 1.5 1.3 23.5 19.2 0.6 0.5

Page Industries Accumulate 4,338 4,611 4,839 1,057 1,282 19.4 19.6 124.8 153.7 34.8 28.2 17.2 12.7 56.3 51.8 4.7 3.8

Relaxo Footwears Buy 732 981 879 1,196 1,401 11.9 12.6 55.6 75.4 13.2 9.7 3.2 2.4 27.1 28.1 0.9 0.7

Siyaram Silk Mills Buy 189 228 177 1,158 1,322 10.6 11.0 60.5 75.9 3.1 2.5 0.5 0.4 16.8 18.1 0.4 0.3Styrolution ABS India* Buy 352 492 619 1,007 1,108 8.4 8.7 30.3 35.1 11.6 10.0 1.3 1.2 11.7 12.2 0.6 0.5

TAJ GVK Buy 57 108 354 300 319 35.8 36.2 7.9 9.1 7.2 6.2 1.0 0.9 13.9 14.4 1.5 1.3

Tata Sponge Iron Buy 245 371 377 814 849 17.0 17.6 64.6 69.2 3.8 3.5 0.5 0.5 14.5 13.8 0.1 (0.1)

TTK Healthcare Buy 497 632 386 416 481 4.5 6.1 16.2 25.3 30.7 19.6 3.8 3.3 12.6 18.1 0.8 0.7

Tree House Buy 246 297 885 153 194 53.0 52.8 12.4 15.6 19.9 15.7 2.3 2.1 11.8 13.1 6.0 4.6

TVS Srichakra Buy 165 230 126 1,591 1,720 6.1 6.4 30.5 38.3 5.4 4.3 0.7 0.6 13.5 15.5 0.3 0.2

United Spirits Neutral 2,293 - 33,324 12,294 14,162 12.0 12.0 42.1 67.7 54.5 33.9 3.8 3.5 9.1 10.7 3.1 2.6

Vesuvius India* Buy 347 439 704 600 638 20.1 19.4 35.7 36.6 9.7 9.5 1.7 1.5 19.4 17.1 1.0 0.8


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Others

HSIL Buy 78 117 517 2,042 2,363 14.6 14.8 12.3 16.5 6.4 4.8 0.5 0.5 7.6 9.4 0.7 0.6

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 07, 2013


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