Market Outlook 11th May 2012

7/31/2019 Market Outlook 11th May 2012

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Market OutlookMay 11, 2012

www.angelbroking.com

Dealers Diary

Indian markets are expected to open lower tracking mixed cues from the global

markets. While major European markets rose on Thursday, US markets were

mixed. Most of the Asian markets are trading in the red with SGX Nifty trading

marginally lower by 0.5% in the opening session.

U.S markets had choppy trade on Thursday following the downward trend seen

over the past several sessions. However, reports showing a reduction in initial

jobless claims for the week to 367,000 provided some relief to the markets. While

Nasdaq index fell marginally, Dow index and S&P index rose by 0.2% and 0.3%

respectively. The German DAX index ended up 0.7%, while the French CAC 40

index and the U.K.'s FTSE 100 index gained 0.4% and 0.3% respectively.

Meanwhile, Indian markets ended modestly lower on Thursday, erasing early

gains. FII outflow fears continued to haunt investors despite a series of measures

announced by the RBI recently to prop up the `, which hit a record low of 53.85

against the dollar the previous day. Markets would track the IIP data for expected

to be released today.

Markets TodayThe trend deciding level for the day is 16,490 / 4,985 levels. If NIFTY trades above

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

up to 16,602 16,784 / 5,020 5,074 levels. However, if NIFTY trades below

16,490 / 4,985 levels for the first half-an-hour of trade then it may correct up to

16,307 16,195 / 4,931 4,896 levels.

Indices S2 S1 PIVOT R1 R2SENSEX 16,195 16,307 16,490 16,602 16,784NIFTY 4,896 4,931 4,985 5,020 5,074

News Analysis

Cabinet clears MFI Bill 4QFY2012 Result Reviews NTPC, Cipla, Lupin, Cadila, Canara Bank, Apollo

Tyres, Sintex, HEG 4QFY2012 Result Previews Dr Reddys Lab, Indian Bank, Federal Bank

Refer detailed news analysis on the following page

Net Inflows (May 9, 2012)

` cr Purch Sales Net MTD YTDFII 2,211 2,569 (357) (472) 42,990

MFs 622 596 26 (474) (6,575)

FII Derivatives (May 10, 2012)

` cr Purch Sales Net Open InterestIndex Futures 1,672 1,717 (46) 10,106

Stock Futures 1,313 1,153 161 20,677

Gainers / Losers

Gainers LosersCompany Price (`) chg (%) Company Price (`) chg (%)Glenmark Pharma 364 7.1 GVK Power 12 (7.0)

Chambal Fert 69 4.0 IVRCL 53 (6.2)

Cairn India 321 4.0 HDIL 63 (5.3)

Indusind Bank 316 3.4 Suzlon Energy 20 (4.9)

IDFC 119 3.1 Lupin 521 (4.1)

Domestic Indices Chg (%) (Pts) (Close)BSE Sensex (0.4) (59.5) 16,420

Nifty (0.2) (9.1) 4,966

MID CAP 0.1 3.8 5,998

SMALL CAP (0.2) (15.8) 6,454

BSE HC (0.3) (22.0) 6,707

BSE PSU (0.2) (15.7) 6,780

BANKEX (0.1) (8.9) 10,834

AUTO (0.9) (86.8) 9,722

METAL (1.0) (105.2) 10,227

OIL & GAS 0.6 46.8 7,585

BSE IT (0.1) (4.8) 5,540

Global Indices Chg (%) (Pts) (Close)Dow Jones 0.2 20.0 12,855NASDAQ (0.0) (1.1) 2,934

FTSE 0.3 13.9 5,544

Nikkei (0.4) (35.4) 9,010

Hang Seng (0.5) (103.4) 20,227

Straits Times 0.0 (0.1) 2,900

Shanghai Com 0.1 1.6 2,410

Indian ADRs Chg (%) (Pts) (Close)INFY 0.1 0.0 $44.5

WIT 0.8 0.1 $9.2IBN 1.1 0.3 $30.8

HDB 0.8 0.3 $31.6

Advances / Declines BSE NSEAdvances 1,208 597

Declines 1,592 837

Unchanged 123 79

Volumes (` cr)BSE 1,942

NSE 9,693


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Cabinet clears MFI bill

The cabinet has cleared the Micro finance bill which will bring the micro lenders

under the purview of the Reserve Bank. The MFI bill is positive for the micro

finance institutions sector as it will supersede the state government laws, which has

been in turmoil ever since the Andhra Pradesh government set stringent norms onlending and interest collection within the state. It is also positive for the Banking

sector as it will help to reduce the MFI delinquencies on their books.

Result Reviews

NTPC (CMP: `150/ TP: `201/Upside 34%)

For 4QFY2012, NTPC posted a 4.8% yoy growth in its standalone net sales to

`16,264cr, in-line with our estimates, aided by higher capacity and better

realization. OPM stood at 25.3%, up 180bp on yoy basis, despite the increase in

fuel costs, on account of higher realizations. The companys net profit declined by

6.8% yoy to `2,594cr, due to higher interest, tax and depreciation. NTPCs tax

expense for the quarter stood at `1,063cr vs. `475cr in 4QFY2011. We maintaina Buy on the stock with a Target Price of `201.Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 73,558 23.4 10,397 12.6 13.3 11.9 1.5 10.3 2.4

FY2014E 84,843 23.6 11,621 14.1 13.5 10.6 1.4 9.5 2.2

Cipla (CMP-`

323/ TP- /Buy)Cipla reported better than expected result both on the net sales and profits. For the

4QFY2012, Cipla reported sales and net profit of `1814cr and `292cr, registering

a yoy growth of 12.3% and 25.4% respectively. On the operating front, the Gross

and Operating margins came in at 57.4% and 19.1% respectively. While both

GPM and OPM expanded yoy, they were below expectations of 58.2% and 21.5%

respectively. However, inspite of the same, the net profit came in at higher than

expectations of `292cr, V/s expectations of `282cr, mainly on of lower taxation

and deprecation during the quarter than expected. Currently the stock is valued at15.6xFY2014E earnings. We retain our Buy rating on the stock; however, targetprice is under review.Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 6,196 21.4 1.415 17.4 17.5 18.5 2.9 14.7 3.2

FY2014E 7,443 21.4 1,677 20.7 15.6 14.1 2.5 12.4 2.7

Lupin (CMP- `543/ TP- `656/ Buy)Lupin reported just-in-line sales, while the net profit came in below expectations.

For the quarter, the company posted sales of `1932cr, a rise of 24.6% yoy. The

growth on the advanced and emerging, both of which grew by 30% and 29% yoyrespectively, aided the overall growth of the company. On the operating front, the

Gross and Operating margins came in at 59.5% and 17.6% respectively. The

OPMs were below expectations of 19.7%. This along with the higher tax along


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with the deprecations during the quarter aided the net profit to come at `156cr, in

comparison to the`258cr estimated for the quarter. Currently the stock is valuedat 16.6xFY2014E earnings. We maintain a buy on the stock with a target of `656.

Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 8,426 19.7 1,324 29.7 28.6 18.3 4.7 14.9 2.9

FY2014E 10,082 20.0 1,677 32.8 25.7 16.6 3.8 12.0 2.4

Cadila Healthcare (CMP-`734/ TP-`1016/ Buy)

Cadila Healthcare reported below than expected sales and net profit numbers. For

the quarter, the company posted sales of `1344cr, a rise of 15.0% yoy. The

growth was primarily driven by domestic markets, which registered a yoy growth of

38.2%. Exports on the other hand grew yoy by 5.3% during the period. On the

operating front, the Gross and Operating margins came in at 64.7% and 17.0%

respectively. The OPMs were below expectations of 18.7%. This along with the

higher interest expenses during the quarter aided the net profit to come at`171cr,

in comparison to the `200cr estimated for the quarter. Currently the stock isvalued at 14xFY2014E earnings. We maintain a buy on the stock with a target of`1016.Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 6,196 18.5 934 45.6 30.1 16.1 4.4 13.1 2.4

FY2014E 7,443 19.5 1077 52.6 27.8 14.0 3.5 9.9 1.9

Canara Bank (CMP:`419/ TP:`532 / Upside: 27.0%)For 4QFY2012, Canara Bank posted a weak set of results with net profit declining

by 7.8% yoy to`829cr. Bottom-line was dented by subdued net interest income,

de-growth in fee income and higher operating expenses. The banks overall

business growth remained moderate with advances growth of 11.3% yoy, largely

aided by agriculture, infrastructure, and industrials segments. Deposits grew by

9.4% yoy. On the deposits side, calculated CASA ratio declined by 383bp yoy to

24.3%, due to decrease in current deposits by 39.5% yoy and 10.5% yoy growth in

saving deposits. The banks reported NIMs remained flattish during 4QFY2012, as

rise in yield on advances by 8bps qoq to 10.93% was completely offset by asimilar rise in the cost of deposits to 7.35%. Commission and brokerage income

de-grew during the quarter by 13.7% yoy to`215cr.

On the asset quality front, gross and net NPA ratio for the bank remained at

nearly the same levels on a qoq basis. Provision coverage ratio for the quarter also

remained flat sequentially at 67.6%. During 4QFY2012, the bank restructured

`2,572cr worth of accounts, of which`1,475cr was on account of restructuring of

Air India. The bank did not restructure any SEB accounts during 4QFY2012, but

expects`5,385cr of SEB restructuring to occur in 1QFY2013 which would include

discoms from the state of Rajasthan, Haryana and UP and Gujarat. The stock is

currently trading at cyclically moderate valuations of 0.7x FY2014E ABV vs. 5-yearaverage of 1.0x and range of 0.7-1.4x, in our view largely factor in the negatives.

Hence, we recommend Buy on the stock with a target price of `532.


4/16



Y/E Op. Inc NIM PAT EPS ABV RoA RoE P/E P/ABVMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 1,212 2.2 328 85.7 506.9 0.8 15.0 5.5 0.8

FY2014E 1,401 2.2 375 95.4 573.9 0.8 15.2 4.8 0.7

Apollo Tyres (CMP-`82 / TP- /Under review)

For 4QFY2012, Apollo Tyres (APTY) registered a strong net sales growth of 18.4%

yoy (flat qoq) to`3,231cr driven by 8.8% yoy growth each in total volumes and net

average realization. Indian operations were the prime driver of growth with total

sales increasing by 28.2% yoy driven by 14% growth each in volumes and net

average realization. While European operations witnessed slightly lower than

expected growth of 8.7% yoy, poor performance in South Africa impacted the

overall performance. South Africa operations witnessed 18% yoy decline in

volumes led by poor demand and also on account of plant shutdown due to

national as well as company specific issues.

On the operating front, margins expanded 110bp sequentially (flat on yoy basis)

to 11.1%, mainly due to margin improvement in the domestic business (EBITDA

margin improved 200bp yoy and 160bp sequentially) led by decline in raw-

material expenses. However, weak performance in South Africa and Europe

nullified the positive impact of strong domestic performance. While South Africa

operations reported operating loss largely due to de-growth in volumes; Europe

operations witnessed 200bp margin contraction sequentially during the quarter.

Net profit declined 18.6% yoy to `157cr mainly on account of higher interest (up

31.5%) and depreciation (up 22.1%) expense and lower other income (down 37%).

Further higher tax rate (24.6% as against 8.4% in 4QFY2011) also impacted thebottom-line negatively.

Going ahead, we expect the domestic business to do well, led by pick-up in

demand in the replacement segment, improvement in OEM demand and stable

raw-material environment. However, South Africa and Europe operations are

expected to remain under pressure due to demand slowdown. At`82, the stock is

trading at 6.5x FY2014E earnings. We retain our Buy rating on the stock; however,target price is under review.Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 13,580 10.1 531 10.5 17.8 7.8 1.3 4.9 0.5

FY2014E 15,007 10.2 630 12.5 18.1 6.5 1.1 4.1 0.4

Sintex Industries(CMP- `61/ TP- / Under review)Sintex Industries announced its 4QFY2012 results. The companys net sales

declined by 11.8% qoq and 30.1% yoy to`1,024cr on the back of lower sales in

the plastic segment. The plastic segment registered a 14.8% qoq and 33.2% yoy

decline in revenue to `892cr. The textile segment, on the other hand, witnessed

15.1% qoq and 2.2% yoy growth in revenue to `132cr. The companys EBITDA

declined by 44.7% yoy to `160cr (`290cr) on the back of lower revenue and

margin contraction. EBITDA margin contracted by 415bp yoy but expanded by

158bp qoq to 15.6% on account of lower other expenditure. Other expenditure as

a percentage of sales declined to 13.0% in 4QFY2012 compared to 14.7% in


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3QFY2012. PAT declined by 45.7% yoy to `91cr (`168cr) due to margin

contraction on a yoy basis and lower revenue during the quarter. Consequently,

PAT margin declined by 256bp yoy to 8.9% (11.5%). Currently, the stock is underreview.Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 5,219 16.5 428 15.8 14.7 3.9 0.6 3.3 0.6

FY2014E 4,702 16.9 581 21.4 17.1 2.9 0.5 2.6 0.4

HEG (CMP `222/ TP-/ Under Review)

For 4QFY2012, HEG reported a disappointing set of numbers. The company's top

line came in at `407cr, 4.1% below our estimates of `425cr; however, revenue

increased by 44.7% on a yoy basis, mainly driven by higher prices of graphite

electrodes. EBITDA margin plunged by 1470bp to 5.9% during the quarter due to

increased power and fuel cost, which grew from 6% (as percentage of sales) to8.1% and forex loss of `48cr. Depreciation cost increased by 11% yoy due to

commencement of the expanded capacity. Thus, the overall increase in expenses

led to a fall in net profit by 85.5% yoy to `5cr in the quarter as compared to`34cr

in 4QFY2011. The stock rating is under review.Y/E Sales OPM PAT EPS RoE P/E P/BV EV/EBITDA EV/Sales

March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2013E 1767 13.8 107 25.9 12.2 8.3 1.0 7.7 1.1FY2014E 1973 14.3 121 29.2 12.9 7.4 0.9 7.1 1.0

Result Previews

Dr Reddys

For the 4QFY2012, Dr Reddys is expected to post top-line growth of 14% yoy to

`2,301cr, majorly driven by the U.S. market. The company is expected to see good

traction in its Indian and Russian formulation businesses as well. The company is

expected to post EBITDA of 32.0%, up 770bp yoy. On the net profit front, the

company is expected to post net profit of `526cr, registering 57.3% yoy growth.We maintain our neutral stance on the stock.Indian Bank

Indian Bank is scheduled to announce its 4QFY2012 results. Net interest income is

expected to grow by moderate 12.8% yoy (up 3.1% qoq) to `1,170cr. Non-interest

income is expected to increase by 13.1% yoy to `281cr. Consequently, operating

income is expected to increase by 12.8% yoy to`1,451cr. Operating expenses are

expected to increase by 13.7% yoy to `540cr, leading to pre-provisioning profit

growing by 12.3% yoy to`912cr. Provisioning expenses are expected to increase

three-fold on a yoy basis to `236cr. Consequently, net profit is expected to

increase only by 7.0% yoy to`526cr. At the CMP, the stock is trading at valuationsof 0.7x FY2014E ABV. We recommend a Buy rating on the stock with a targetprice of `240.


6/16



Federal Bank

Federal Bank is scheduled to announce its 4QFY2012 results. We expect the bank

to report healthy net interest income growth of 19.9% yoy to `227cr. Non-interest

income is expected to increase by 11.4% yoy to `157cr. Cost-to-income ratio is

expected to remain similar to 3QFY2012 levels at 38.7%. Pre-provision profit of

the bank is expected to increase by 21.5% yoy to `425cr. Net profit is expected to

increase by healthy 32.2% to`227cr. At the CMP, the stock is trading at valuations

of 1.0x FY2014E P/ABV. We remain Neutral on the stock.

Quarterly Bloomberg Brokers Consensus Estimate

Dr. Reddy Laboratories Ltd - Consolidated (11/05/2012)Particulars (` cr) 1Q CY12E 1Q CY11 y-o-y (%) 4Q CY11 q-o-q (%)Net sales 2,592 2,017 29 2,769 (6)

Net profit 451 334 35 513 (12)

Federal Bank Ltd - (11/05/2012)Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)Net profit 204 172 19 202 1

Divi's Laboratories Ltd - (12/05/2012)Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)Net sales 409 480 (15) 415 (1)

EBITDA 155 194 (20) 151 3EBITDA margin (%) 37.9 40.4 36.4

Net profit 121 175 (31) 123 (2)

Essar Oil Ltd - (12/05/2012)Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)Net sales 16,520 13,315 24 12,851 29

EBITDA 619 865 (28) 734 (16)

EBITDA margin (%) 3.7 6.5 5.7

Net profit (221) 321 (169) (3,986) (94)

Adani Ports & SEZ Ltd - (14/05/2012)Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)Net sales 680 421 62 588 16

EBITDA 464 310 50 411 13

EBITDA margin (%) 68.2 73.6 69.9

Net profit 318 228 39 273 16


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Ashok Leyland Ltd - (14/05/2012)Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)Net sales 4,224 3,829 10 2,880 47

EBITDA 475 510 (7) 210 126

EBITDA margin (%) 11.2 13.3 7.3

Net profit 263 298 (12) 67 293

JSW Steel Ltd - Consolidated (14/05/2012)Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)Net sales 8,869 7,210 23 8,405 6

EBITDA 1,592 1,016 57 1,317 21

EBITDA margin (%) 18.0 14.1 15.7

Net profit 561 292 92 (48) (1269)

Larsen & Toubro Ltd - (14/05/2012)Particulars (` cr) 4Q FY12E 4Q FY11 y-o-y (%) 3Q FY12 q-o-q (%)Net sales 18,468 15,078 22 13,999 32

EBITDA 2,547 2,341 9 1,343 90

EBITDA margin (%) 13.8 15.5 9.6

Net profit 1,652 1,686 (2) 992 67

Economic and Political News

India to grow at 7.5% in FY2013: UN Report Govt. directs coal firms to supply fuel to power plans via MoU route Oil companies demand subsidy for petrol losses

Corporate News

SKS Micro Fin shuts 78 branches in Andhra Pradesh Allahabad Bank plans to revive US$500mn bond sale Unitech moves CLB against TelenorSource: Economic Times, Business Standard, Business Line, Financial Express, Mint


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Date Company

May 11, 2012 NTPC, Cipla, Lupin, Canara Bank, Cadila Healthcare, Sintex, Apollo Tyres, HEG

May 12, 2012 Dr Reddy's, Indian Bank, Federal Bank, Thermax, Graphite India, Goodyear

May 13, 2012 J & K Bank, Essar Oil, Divi's Lab., Bhushan Steel, Madhucon Proj, Consolidated Co, Relaxo

May 14, 2012 -

May 15, 2012Larsen & Toubro, Mundra Port, JSW Steel , Ashok Leyland, Indraprasth Gas, Areva, Monnet Ispat, Orchid Chemicals,IVRCL Infra, Abbott India

May 16, 2012 Cummins India, Unitech, Patel Engg., Dishman Pharma, JK Tyre

May 17, 2012 Blue Star, J K Lakshmi Cements

May 18, 2012 Bajaj Auto, Mahindra Satyam

May 19, 2012 Coal India, St Bk of India, Tata Steel, HT Media

May 20, 2012 Force Motors

May 21, 2012 -

May 22, 2012 Adani Enterp., Adani Power, Zee Entertainment

May 23, 2012 Tata Power Co., Power Fin.Corpn.

May 24, 2012 Rural Elec.Corp., Tata Global, LMW, Jyothy Laboratories

May 25, 2012 GSPL, Madras Cements, Hitachi

May 26, 2012 NHPC, BPCL

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

May 11, 2012 India Industrial Production YoY % Change Feb-12 4.10 1.70

US Producer Price Index (mom) % Change Mar-12 -- --China Industrial Production (YoY) % Change Mar-12 11.90 12.20

China Consumer Price Index (YoY) % Change Apr-12 3.40 3.40

May 14, 2012 IndiaMonthly Wholesale PricesYoY%

% Change Mar-12 6.89 6.62

May 15, 2012 US Consumer price index (mom) % Change Mar-12 0.30 0.10

Euro Zone Euro-Zone GDP s.a. (QoQ) % Change Dec-11 (0.30) (0.20)

Germany GDP nsa (YoY) % Change Dec-11 1.50 --

May 16, 2012 Euro Zone Euro-Zone CPI (YoY) % Mar-12 2.70 2.60

US Industrial Production % Mar-12 -- 0.50

US Housing Starts Thousands Mar-12 654.00 680.00

US Building permits Thousands Mar-12 764.00 730.00

UK Jobless claims change % Change Mar-12 3.60 5.00

May 22, 2012 Euro ZoneEuro-Zone ConsumerConfidence

Value Apr-12 (19.90) --

UK CPI (YoY) % Change Mar-12 3.50 --

US Existing home sales Millions Mar-12 4.48 --

May 23, 2012 US New home sales Thousands Mar-12 328.00 --

May 24, 2012 Germany PMI Services Value Apr-12 52.20 --

Germany PMI Manufacturing Value Apr-12 46.20 --

UK GDP (YoY) % Change Mar-12 -- --

May 29, 2012 US Consumer Confidence Value Apr-12 69.20 --Source: Bloomberg, Angel Research


May 11, 2012

Market Outlook


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Market StrategyMay 11, 2012


Macro watch

Exhibit 1:Quarterly GDP trends

5.8 5.9

7.5

9.8

7.4

9.4

8.5

7.6

8.3

7.8 7.7

6.9

6.1

5.0

6.0

7.0

8.0

9.0

10.0

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

(%)

Source: CSO, Angel Research

Exhibit 2:IIP trends

9.4

5.36.2

9.5

3.7 3.42.5

(5.0)

6.0

2.5

1.1

4.1

(6.0)

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

12.0

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oc-1

1

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

(%)

Source: MOSPI, Angel Research

Exhibit 3:Monthly WPI inflation trends

9.7 9.6 9.5 9.4 9.810.0 9.9 9.5

7.76.9 7.0 6.9

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-12

(%)

Source: MOSPI, Angel Research

Exhibit 4:Manufacturing and services PMI

48.0

50.0

52.0

54.0

56.0

58.0

60.0

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-12

Apr-12

Mfg. PMI Services PMI

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

Exhibit 5:Exports and imports growth trends

(15)0

15

30

45

60

75

90

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oc-1

1

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-12

Exports yoy growth Impor ts yoy growth(%)

Source: Bloomberg, Angel Research

Exhibit 6:Key policy rates8.00

7.00

4.75

4.00

5.00

6.00

7.00

8.00

9.00

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-12

Apr-12

Repo rate Reverse Repo rate CRR(%)

Source: RBI, Angel Research


10/16

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

Agri / Agri Chemical

Rallis Neutral 126 - 2,457 1,432 1,647 14.7 14.7 7.0 8.0 18.1 15.8 3.8 3.3 22.8 22.3 1.7 1.5

United Phosphorus Buy 120 183 5,515 8,191 8,764 16.5 16.5 17.1 18.3 7.0 6.5 1.1 1.0 17.5 16.2 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Buy 295 345 2,517 2,691 3,032 15.6 15.5 29.4 32.8 10.0 9.0 2.4 1.9 26.5 23.6 0.9 0.8

Apollo Tyres Buy 82 100 4,123 13,580 15,007 10.1 10.2 10.5 12.5 7.8 6.5 1.3 1.1 21.8 30.7 0.5 0.4

Ashok Leyland Buy 28 37 7,317 15,008 16,906 9.5 9.5 2.6 3.1 10.7 8.9 2.2 1.9 15.5 17.0 0.6 0.5

Automotive Axle Neutral 500 - 756 1,211 1,390 11.9 11.5 50.5 56.3 9.9 8.9 2.5 2.0 27.9 25.3 0.7 0.6Bajaj Auto Buy 1,503 1,811 43,489 21,966 24,774 19.8 19.0 111.7 120.7 13.5 12.5 5.2 4.2 43.1 37.1 1.6 1.3

Bharat Forge Accumulate 338 372 7,863 7,173 7,998 16.3 16.5 22.3 26.6 15.1 12.7 2.9 2.5 21.0 21.0 1.2 1.0

Bosch India Neutral 9,179 - 28,820 9,390 10,716 19.5 19.1 420.2 471.4 21.8 19.5 5.1 4.3 23.3 21.8 2.8 2.4

CEAT Buy 97 164 334 5,067 5,631 8.0 7.6 39.4 41.0 2.5 2.4 0.4 0.4 18.8 16.5 0.3 0.3

Exide Industries Buy 125 146 10,583 5,787 6,595 15.5 17.0 7.1 9.0 17.5 13.9 3.1 2.6 18.6 20.3 1.5 1.2

FAG Bearings Neutral 1,541 - 2,561 1,531 1,748 18.8 18.5 118.0 132.8 13.1 11.6 2.8 2.3 24.0 21.9 1.4 1.2

Hero Motocorp Neutral 1,843 - 36,799 26,106 29,296 15.0 15.2 140.3 148.1 13.1 12.5 6.2 4.8 54.8 43.3 1.1 0.9

JK Tyre Buy 76 113 312 8,058 9,025 5.4 5.5 24.8 32.2 3.1 2.4 0.3 0.3 11.4 13.2 0.3 0.3

Mahindra and Mahindra Buy 661 802 40,599 35,095 40,213 10.7 10.5 44.6 48.7 14.8 13.6 2.6 2.3 18.8 18.1 0.8 0.7

Maruti Buy 1,261 1,510 36,417 42,683 48,736 7.1 7.5 86.6 100.6 14.6 12.5 2.1 1.8 15.3 15.5 0.7 0.5

Motherson Sumi Buy 169 216 6,560 11,167 12,516 9.5 10.0 11.3 14.4 15.0 11.8 3.2 2.7 23.3 24.7 0.7 0.6

Subros Neutral 32 - 193 1,225 1,393 8.5 8.2 4.2 5.0 7.7 6.5 0.8 0.7 10.3 11.8 0.4 0.3

Tata Motors Accumulate 290 328 77,974 191,183 213,150 12.6 12.6 38.7 42.9 7.5 6.8 2.6 2.1 39.8 33.9 0.5 0.5

TVS Motor Buy 36 55 1,710 7,982 8,816 6.4 6.3 5.0 5.6 7.2 6.5 1.3 1.1 18.9 18.2 0.2 0.2

Capital Goods

ABB* Sell 726 503 15,381 8,926 10,220 7.7 7.5 18.6 20.9 39.0 34.7 5.3 4.7 14.5 14.5 1.7 1.5BGR Energy Reduce 302 274 2,179 4,170 5,396 11.5 10.4 27.2 30.4 11.1 9.9 1.8 1.6 17.3 17.4 1.1 1.0

BHEL Neutral 219 - 53,676 46,344 46,916 18.3 18.6 23.5 24.1 9.3 9.1 1.9 1.6 21.3 18.9 1.0 1.0

Blue Star Buy 186 221 1,669 3,250 3,551 5.9 5.9 12.4 15.8 14.9 11.8 3.1 2.6 21.2 23.8 0.6 0.5

Crompton Greaves Buy 120 164 7,666 12,936 14,101 9.6 10.0 10.9 11.7 11.0 10.2 1.9 1.7 18.4 17.3 0.6 0.5

Jyoti Structures Buy 39 67 321 2,622 2,801 10.6 11.0 10.9 13.4 3.6 2.9 0.4 0.4 12.7 13.9 0.3 0.3

KEC International Buy 51 73 1,316 6,686 7,200 7.7 7.9 10.6 12.2 4.9 4.2 0.9 0.8 25.9 24.0 0.3 0.3

LMW Buy 1,556 2,609 1,753 2,663 3,130 12.8 12.8 185.0 217.4 8.4 7.2 1.7 1.5 21.2 21.7 0.2 0.1

Thermax Neutral 430 - 5,121 5,473 5,497 10.1 9.8 30.4 28.7 14.2 15.0 2.7 2.4 20.5 16.9 0.8 0.7


May 11, 2012

Market Outlook

Stock Watch


11/16



Cement

ACC Neutral 1,200 - 22,529 11,018 12,663 19.9 21.2 70.7 81.2 17.0 14.8 3.0 2.7 18.0 19.0 1.8 1.5

Ambuja Cements Neutral 146 - 22,444 10,035 11,504 23.5 23.8 10.1 10.6 14.4 13.8 2.8 2.6 18.5 19.4 1.9 1.5

India Cements Neutral 84 - 2,590 4,423 4,906 18.2 18.8 9.9 12.7 8.6 6.7 0.7 0.7 8.6 10.5 0.9 0.8

J K Lakshmi Cements Buy 61 79 747 1,880 2,201 19.0 22.6 12.2 16.4 5.0 3.7 0.6 0.5 11.9 14.3 0.6 0.9

Madras Cements Neutral 144 - 3,428 3,434 3,777 25.5 26.1 14.1 18.1 10.2 8.0 1.5 1.3 15.2 16.9 1.6 1.4

Shree Cements Neutral 2,690 - 9,371 5,552 6,193 25.7 26.0 130.3 182.0 20.6 14.8 4.3 3.6 19.1 22.3 1.4 1.1

UltraTech Cement Neutral 1,392 - 38,142 20,116 22,655 21.3 22.5 82.1 97.5 17.0 14.3 2.7 2.3 16.8 17.4 1.8 1.7Construction

Ashoka Buildcon Buy 195 302 1,027 2,014 2,294 22.4 22.4 28.4 30.8 6.9 6.3 0.9 0.8 14.1 13.3 2.3 2.6

Consolidated Co Neutral 15 - 273 2,526 2,792 5.7 6.6 1.8 2.8 8.0 5.2 0.4 0.4 5.6 8.2 0.3 0.3

Hind. Const. Neutral 18 - 1,116 4,239 4,522 11.1 11.8 (1.8) (0.8) (10.3) (23.6) 1.1 1.2 (9.5) (4.7) 1.3 1.2

IRB Infra Buy 121 228 4,037 3,821 4,582 42.3 40.2 15.0 16.9 8.1 7.2 1.2 1.1 16.3 15.9 2.7 2.5

ITNL Buy 172 265 3,334 6,619 7,925 23.8 23.3 22.0 26.7 7.8 6.4 1.1 1.0 14.9 15.9 2.2 2.1

IVRCL Infra Buy 53 79 1,415 5,758 6,860 9.2 9.2 4.7 6.0 11.3 8.8 0.7 0.6 6.0 7.3 0.7 0.7

Jaiprakash Asso. Buy 60 104 12,844 16,017 18,359 24.4 23.5 4.2 5.0 14.4 12.0 1.2 1.1 8.8 9.7 2.1 1.9

Larsen & Toubro Buy 1,156 1,641 70,781 60,258 69,900 12.1 11.5 70.7 76.3 16.4 15.2 2.5 2.1 16.1 15.2 1.3 1.1

Madhucon Proj Buy 48 84 352 2,503 2,903 10.7 10.7 5.8 6.6 8.2 7.3 0.5 0.5 6.6 7.0 0.7 0.7

Nagarjuna Const. Buy 37 76 956 5,790 7,022 9.2 9.5 3.5 5.4 10.7 6.9 0.4 0.4 3.7 5.6 0.8 0.8

Patel Engg. Neutral 93 - 650 3,609 3,836 13.1 13.1 14.0 14.6 6.6 6.4 0.4 0.4 6.3 6.1 1.0 1.1

Punj Lloyd Neutral 45 - 1,496 10,592 12,193 8.4 8.4 2.9 4.6 15.5 9.9 0.5 0.5 3.9 3.1 0.6 0.6

Sadbhav Engg. Buy 133 199 2,001 2,989 3,315 10.6 10.6 10.2 11.3 13.1 11.8 2.1 1.8 17.6 16.3 0.9 0.8

Simplex Infra Buy 215 316 1,064 6,732 7,902 9.3 9.6 27.2 35.1 7.9 6.1 0.8 0.7 11.0 12.6 0.5 0.4

FinancialsAllahabad Bank Accumulate 152 166 7,603 7,392 8,542 3.1 3.1 38.3 42.1 4.0 3.6 0.7 0.6 18.4 17.6 - -

Andhra Bank Neutral 105 - 5,859 5,284 5,998 3.3 3.2 23.6 27.0 4.4 3.9 0.7 0.6 16.5 16.7 - -

Axis Bank Buy 979 1,587 40,508 16,157 19,557 3.2 3.2 116.4 139.1 8.4 7.0 1.6 1.3 20.0 20.3 - -

Bank of Baroda Buy 641 926 25,084 15,993 18,918 2.6 2.6 121.5 143.1 5.3 4.5 0.9 0.8 17.8 18.2 - -

Bank of India Buy 313 386 17,982 13,558 15,551 2.5 2.4 54.9 63.1 5.7 5.0 0.9 0.8 16.8 16.9 - -

Bank of Maharashtra Buy 48 62 2,851 3,665 4,107 3.5 3.5 10.7 13.5 4.5 3.6 0.7 0.6 17.8 17.5 - -

Canara Bank Buy 419 532 18,553 12,120 14,009 2.2 2.2 85.7 95.4 4.9 4.4 0.8 0.7 17.2 16.7 - -

Central Bank Buy 77 92 5,646 6,860 7,934 2.4 2.4 13.1 19.9 5.9 3.9 0.7 0.7 10.5 13.8 - -


May 11, 2012

Market Outlook

Stock Watch


12/16



Financials

Corporation Bank Buy 404 522 5,990 5,203 5,880 2.2 2.1 107.5 112.7 3.8 3.6 0.6 0.6 17.9 16.5 - -

Dena Bank Buy 84 118 2,951 3,003 3,366 3.0 2.9 23.2 25.6 3.6 3.3 0.6 0.5 18.0 16.9 - -

Federal Bank Neutral 408 - 6,981 2,766 3,163 3.4 3.3 49.5 57.2 8.3 7.1 1.1 1.0 14.0 14.5 - -

HDFC Neutral 651 - 96,162 7,244 8,625 3.3 3.3 31.2 37.2 20.9 17.5 4.1 3.6 34.2 31.3 - -

HDFC Bank Accumulate 517 567 121,342 21,831 27,477 4.3 4.3 28.3 35.5 18.3 14.6 3.5 3.0 20.8 22.1 - -

ICICI Bank Buy 813 1,183 93,413 22,209 26,512 2.8 2.8 67.9 81.1 12.0 10.0 1.5 1.3 14.7 16.0 - -

IDBI Bank Buy 92 117 11,806 8,004 9,589 1.9 2.0 19.9 23.9 4.7 3.9 0.6 0.6 13.8 14.9 - -Indian Bank Buy 196 240 8,436 6,469 7,244 3.5 3.3 45.5 48.8 4.3 4.0 0.8 0.7 19.6 18.2 - -

IOB Buy 82 101 6,511 7,354 8,283 2.5 2.4 16.3 21.7 5.0 3.8 0.6 0.5 11.5 13.9 - -

J & K Bank Neutral 854 - 4,138 2,420 2,792 3.5 3.6 178.0 195.8 4.8 4.4 0.9 0.8 19.5 18.6 - -

LIC Housing Finance Buy 241 286 12,185 2,108 2,607 2.6 2.6 24.5 30.6 9.9 7.9 1.8 1.6 20.1 21.4 - -

Oriental Bank Buy 220 285 6,416 6,431 7,315 2.7 2.6 54.4 63.8 4.0 3.5 0.6 0.5 13.6 14.3 - -

Punjab Natl.Bank Buy 754 1,138 23,891 20,708 24,094 3.5 3.5 156.3 178.7 4.8 4.2 0.9 0.7 19.7 18.5 - -

South Ind.Bank Neutral 23 - 2,591 1,368 1,557 2.8 2.7 3.7 3.9 6.2 5.8 1.1 1.0 19.1 17.7 - -

St Bk of India Buy 1,844 2,593 123,724 69,568 81,445 3.7 3.7 220.9 269.8 8.4 6.8 1.4 1.2 18.9 19.1 - -

Syndicate Bank Buy 91 128 5,475 7,069 7,961 3.1 3.0 23.3 27.5 3.9 3.3 0.6 0.5 17.4 17.2 - -

UCO Bank Neutral 68 - 4,245 5,727 6,443 2.5 2.5 17.8 18.8 3.8 3.6 0.8 0.7 17.8 16.2 - -

Union Bank Buy 203 266 10,649 10,352 11,988 2.9 2.9 40.7 49.5 5.0 4.1 0.8 0.7 16.8 17.4 - -

United Bank Buy 58 87 2,088 3,666 4,128 2.9 2.9 18.4 21.7 3.1 2.7 0.5 0.4 15.9 16.0 - -

Vijaya Bank Neutral 53 - 2,500 2,668 3,001 2.2 2.2 10.1 11.7 5.2 4.5 0.7 0.6 13.2 13.7 - -

Yes Bank Buy 326 470 11,546 3,209 4,144 2.7 2.8 33.9 41.5 9.6 7.9 2.0 1.7 23.1 23.3 - -

FMCG

Asian Paints Neutral 3,655 - 35,054 10,961 12,773 16.3 16.3 120.3 142.5 30.4 25.6 10.1 8.0 36.9 34.7 3.1 2.6Britannia Buy 551 650 6,584 5,906 6,856 6.9 7.0 22.3 28.3 24.7 19.5 10.1 7.5 45.2 44.1 1.1 0.9

Colgate Neutral 1,162 - 15,796 3,007 3,417 21.1 22.1 37.7 42.6 30.8 27.3 36.7 29.6 129.4 120.1 5.1 4.5

Dabur India Neutral 106 - 18,449 5,878 6,799 16.8 17.0 4.2 4.9 25.5 21.6 9.3 7.6 39.3 42.0 3.2 2.7

GlaxoSmith Con* Neutral 2,779 - 11,689 3,111 2,687 16.9 15.8 100.6 86.1 27.6 32.3 8.4 10.2 33.3 33.8 3.4 4.0

Godrej Consumer Neutral 528 - 17,971 5,973 7,000 18.4 18.6 22.8 27.2 23.2 19.5 6.4 5.1 31.3 38.4 3.2 2.7

HUL Neutral 432 - 93,421 25,350 29,309 14.3 14.4 14.1 16.4 30.6 26.4 22.9 17.9 82.7 76.2 3.5 3.0

ITC Accumulate 239 252 186,665 28,955 33,595 35.9 35.7 9.2 10.5 26.1 22.7 8.3 6.9 34.8 33.1 6.2 5.3


May 11, 2012

Market Outlook

Stock Watch


13/16



FMCG

Marico Neutral 181 - 11,112 4,667 5,427 12.8 12.9 6.6 8.1 27.2 22.2 7.3 5.7 30.0 28.8 2.4 2.0

Nestle* Neutral 4,510 - 43,484 8,731 10,539 21.0 21.4 119.3 147.9 37.8 30.5 23.2 15.8 73.0 61.6 5.0 4.1

Tata Global Buy 112 136 6,954 7,011 7,712 9.7 10.0 6.0 7.1 18.9 15.8 1.7 1.7 8.9 10.2 0.9 0.8

IT

HCL Tech Accumulate 491 560 34,029 22,792 25,743 17.4 17.4 37.8 43.0 13.0 11.4 2.9 2.4 22.3 21.3 1.5 1.3

Hexaware Neutral 121 - 3,572 1,821 2,105 19.0 18.6 9.8 10.7 12.3 11.3 2.8 2.5 23.7 22.5 1.7 1.4

Infosys Buy 2,348 2,792 134,841 37,615 42,491 31.1 30.6 158.5 174.5 14.8 13.5 3.3 2.8 22.5 20.8 2.9 2.5Infotech Enterprises Accumulate 166 177 1,849 1,758 1,972 17.0 16.6 16.8 18.6 9.9 8.9 1.4 1.2 13.6 13.2 0.7 0.5

KPIT Cummins Reduce 115 98 2,042 2,042 2,139 15.2 14.9 9.6 10.9 12.0 10.6 2.1 1.7 19.2 18.0 1.0 0.8

Mahindra Satyam Buy 72 89 8,420 7,142 8,042 15.4 15.0 7.7 8.3 9.4 8.7 1.3 1.1 13.8 13.0 0.8 0.6

Mindtree Neutral 584 - 2,370 2,172 2,450 16.1 15.5 53.9 58.5 10.8 10.0 2.0 1.7 18.9 17.0 0.9 0.7

Mphasis Accumulate 387 433 8,124 5,904 6,320 18.3 17.9 38.7 41.2 10.0 9.4 1.5 1.3 14.9 13.7 0.9 0.8

NIIT Buy 42 61 701 1,105 1,200 16.4 16.9 7.5 9.2 5.7 4.6 1.0 0.9 17.6 19.0 0.4 0.2

Persistent Neutral 363 - 1,453 1,109 1,224 23.3 22.4 37.2 40.1 9.8 9.1 1.5 1.3 15.4 14.5 1.0 0.8

TCS Neutral 1,234 - 241,433 57,189 66,329 29.3 28.7 63.2 70.9 19.5 17.4 6.0 4.8 30.5 27.7 4.0 3.4

Tech Mahindra Accumulate 657 750 8,378 6,030 6,511 16.3 15.7 81.1 87.0 8.1 7.6 1.6 1.4 20.1 18.0 1.4 1.1

Wipro Accumulate 407 430 100,182 41,918 46,879 19.4 19.9 25.1 28.7 16.3 14.2 3.0 2.6 18.6 18.3 2.0 1.7

Media

D B Corp Buy 198 274 3,638 1,656 1,869 26.0 26.8 14.0 16.1 14.2 12.3 3.3 2.7 24.8 24.1 2.1 1.8

HT Media Buy 117 170 2,738 2,255 2,555 17.8 18.3 10.0 12.0 11.7 9.7 1.6 1.4 14.7 15.4 1.0 0.8

Jagran Prakashan Buy 92 137 2,916 1,499 1,642 27.4 28.8 7.6 9.1 12.1 10.2 4.1 3.6 34.6 37.7 1.9 1.7

PVR Neutral 150 - 388 625 732 17.4 16.9 12.4 15.8 12.0 9.5 1.9 2.0 8.5 9.9 0.8 0.7

Sun TV Network Neutral 294 - 11,566 2,135 2,458 75.2 74.4 20.9 24.0 14.1 12.2 3.3 2.8 26.0 25.1 4.4 3.5Metals & Mining

Bhushan Steel Neutral 442 - 9,380 9,232 13,557 30.8 31.1 48.0 58.6 9.2 7.5 1.2 1.0 14.5 7.5 3.2 2.2

Coal India Accumulate 322 351 203,103 65,654 71,756 26.8 27.3 24.0 26.3 13.4 12.2 3.7 3.0 30.4 27.0 2.1 1.8

Electrosteel Castings Buy 19 27 661 1,984 2,074 10.6 12.0 2.7 3.3 7.1 5.8 0.4 0.1 5.2 6.2 0.4 0.4

Hind. Zinc Buy 120 139 50,852 13,043 14,223 51.8 52.8 14.8 16.6 8.1 7.3 1.6 1.3 21.2 19.9 2.2 1.6

Hindalco Neutral 117 - 22,477 84,652 88,766 9.6 10.5 17.0 18.9 6.9 6.2 0.6 0.6 9.7 9.8 0.5 0.5

JSW Steel Neutral 661 - 14,757 39,161 43,958 17.8 17.9 72.2 89.5 9.2 7.4 0.8 0.7 10.1 11.4 0.6 0.5

MOIL Neutral 254 - 4,267 979 1,061 45.7 46.8 24.5 26.6 10.4 9.6 1.6 1.4 16.1 15.8 2.2 1.9

Monnet Ispat Buy 450 585 2,894 2,986 3,908 22.1 28.9 50.5 83.4 8.9 5.4 1.1 0.9 13.5 19.2 1.9 1.3


May 11, 2012

Market Outlook

Stock Watch


14/16



Metals & Mining

Nalco Reduce 58 51 15,000 8,276 8,578 12.7 16.4 2.5 3.5 23.0 16.6 1.3 1.2 5.6 7.5 1.4 1.4

NMDC Accumulate 168 185 66,627 11,726 12,890 77.8 78.4 18.6 20.6 9.0 8.2 2.1 1.8 26.1 23.8 3.5 3.0

SAIL Accumulate 90 102 37,030 52,461 62,935 18.0 18.8 13.2 14.5 6.8 6.2 0.8 0.7 12.4 12.3 1.1 0.9

Sesa Goa Buy 175 206 15,201 9,067 9,316 35.7 35.5 44.5 44.3 3.9 4.0 0.8 0.7 23.5 19.5 0.3 -

Sterlite Inds Buy 95 123 31,959 45,805 49,029 21.2 23.5 16.5 19.1 5.8 5.0 0.6 0.6 11.5 12.0 0.3 0.2

Tata Steel Buy 415 503 40,339 141,358 142,265 11.1 13.7 45.8 58.9 9.1 7.1 0.9 0.8 10.0 11.7 0.6 0.6

Oil & GasCairn India Buy 321 372 61,171 15,513 16,074 74.0 69.7 51.1 48.6 6.3 6.6 1.1 0.9 18.3 14.8 2.8 2.1

GAIL Buy 322 392 40,889 50,472 55,503 15.3 15.6 35.4 37.0 9.1 8.7 1.6 1.4 18.7 17.0 0.5 0.4

ONGC Buy 260 319 222,058 148,157 150,563 37.6 39.5 31.0 33.6 8.4 7.7 1.5 1.3 18.8 18.1 1.1 1.0

Reliance Industries Buy 695 872 227,467 325,734 328,669 10.9 11.7 65.8 70.1 10.6 9.9 1.1 1.0 11.9 11.5 0.7 0.7

Pharmaceuticals

Alembic Pharma Buy 52 91 971 1,624 1,855 14.2 15.6 6.6 9.1 7.8 5.7 1.9 1.5 27.5 29.2 0.8 0.7

Aurobindo Pharma Buy 114 175 3,313 5,243 5,767 14.6 14.6 13.8 14.7 8.3 7.7 1.0 0.4 11.4 10.9 1.0 0.8

Aventis* Neutral 2,107 - 4,852 1,482 1,682 15.5 15.5 95.0 104.0 22.2 20.3 3.9 3.1 18.6 17.0 3.1 2.6

Cadila Healthcare Buy 751 1,016 15,384 6,196 7,443 18.5 19.5 43.3 50.8 17.4 14.8 4.5 3.6 25.4 24.8 2.5 2.0

Cipla Buy 326 380 26,139 7,006 8,164 20.0 21.2 17.0 19.0 19.2 17.1 3.5 3.0 16.8 18.2 3.7 3.2

Dr Reddy's Neutral 1,700 - 28,808 9,183 10,063 25.7 25.1 92.1 89.9 18.5 18.9 4.0 3.4 22.8 18.8 3.2 2.9

Dishman Pharma Buy 43 91 345 1,282 1,538 17.9 17.9 10.1 13.0 4.2 3.3 0.4 0.3 8.5 10.1 1.0 0.9

GSK Pharma* Neutral 2,052 - 17,382 2,788 3,148 35.6 35.2 87.9 96.7 23.4 21.2 7.6 6.3 34.8 32.1 5.5 4.7

Indoco Remedies Buy 434 665 533 685 837 15.2 15.2 55.5 66.5 7.8 6.5 1.2 1.0 16.4 16.9 0.9 0.9

Ipca labs Buy 357 443 4,490 2,907 3,541 21.5 21.5 32.7 40.6 10.9 8.8 2.7 2.2 27.8 27.7 1.7 1.4

Lupin Buy 521 656 23,293 8,272 9,929 19.7 20.0 29.7 32.8 17.6 15.9 4.5 3.5 25.0 22.9 2.8 2.3Orchid Chemicals Buy 168 270 1,181 2,143 2,508 21.8 21.8 28.3 38.1 5.9 4.4 1.2 1.0 19.3 23.4 1.5 1.2

Ranbaxy* Neutral 497 - 20,975 12,023 12,264 19.9 16.9 41.1 36.9 12.1 13.5 2.6 2.3 30.0 17.6 1.5 1.4

Sun Pharma Accumulate 593 634 61,037 9,272 11,080 40.3 36.3 26.7 28.8 22.2 20.6 4.5 3.8 22.1 20.8 5.6 4.6

Power

CESC Buy 268 342 3,353 4,927 5,429 23.8 23.9 41.0 46.2 6.5 5.8 0.7 0.6 10.4 10.7 1.2 1.3

GIPCL Buy 62 98 943 1,557 1,573 28.7 27.5 10.4 10.2 6.0 6.1 0.6 0.6 10.5 9.6 1.1 0.9

NTPC Buy 150 201 123,352 73,558 84,843 23.4 23.6 12.6 14.1 11.9 10.6 1.5 1.4 13.3 13.6 2.4 2.2

Real Estate

Anant Raj Buy 53 78 1,560 657 875 52.0 56.1 8.4 12.7 6.3 4.2 0.4 0.4 6.3 8.9 3.6 2.7

DLF Neutral 186 - 31,624 9,878 12,033 44.7 46.1 9.6 13.4 19.4 13.9 1.2 1.2 6.4 8.7 5.7 4.7


May 11, 2012

Market Outlook

Stock Watch


15/16



Real Estate

HDIL Buy 63 115 2,638 2,441 3,344 53.0 46.7 21.4 25.4 2.9 2.5 0.2 0.2 8.4 9.1 2.9 2.2

Telecom

Bharti Airtel Neutral 310 - 117,610 80,967 88,684 33.1 33.4 17.9 22.0 17.3 14.1 2.0 1.8 11.5 12.5 2.1 1.8

Idea Cellular Neutral 81 - 26,636 22,558 25,326 26.4 27.5 3.2 4.7 25.0 17.0 1.9 1.7 7.5 10.0 1.7 1.4

Rcom Neutral 67 - 13,891 21,899 23,740 32.7 32.7 4.2 6.7 15.9 10.1 0.3 0.3 2.1 3.2 2.1 1.7

zOthers

Bajaj Electrical Buy 198 245 1,974 3,670 4,384 8.5 8.5 18.3 22.3 10.8 8.9 2.4 2.0 23.9 24.3 0.5 0.5CRISIL Neutral 1,061 - 7,445 982 1,136 34.3 34.3 34.3 40.0 30.9 26.5 14.0 11.2 50.9 46.9 7.2 6.0

Finolex Cables Buy 39 60 590 2,341 2,656 8.5 8.8 8.0 10.0 4.8 3.9 0.7 0.6 18.1 20.2 0.2 0.1

Graphite India Buy 90 116 1,758 2,053 2,437 22.6 22.4 13.5 16.3 6.7 5.5 1.0 0.9 15.4 16.5 1.0 0.8

Greenply Buy 205 298 495 1,800 2,047 11.1 11.6 34.1 49.6 6.0 4.1 1.1 0.9 20.2 23.7 0.5 0.4

Page Industries Neutral 2,949 - 3,289 935 1,168 19.6 19.6 99.7 122.2 29.6 24.1 17.1 13.7 64.2 63.1 3.6 2.8

Sintex Buy 61 129 1,665 5,219 5,912 16.5 16.9 15.8 21.4 3.9 2.9 0.6 0.5 14.7 17.1 0.6 0.4

Siyaram Silk Mills Buy 261 439 245 1,045 1,173 12.3 12.4 61.5 73.2 4.2 3.6 0.8 0.7 20.2 20.4 0.5 0.5

SpiceJet Neutral 29 - 1,285 5,384 6,443 (1.0) 4.1 (3.4) 2.4 (8.5) 12.2 (11.8) 24.8 - - 0.4 0.4

Taj GVK Buy 58 116 365 322 355 36.3 35.8 8.3 9.6 7.0 6.1 1.0 0.9 14.5 14.9 1.5 1.2

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on May 10, 2012


May 11, 2012

Market Outlook

Stock Watch


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May 11, 2012Market Outlook

Market Outlook 11th May 2012

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Transcript of Market Outlook 11th May 2012