Market Outlook, 12-06-2013
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Transcript of Market Outlook, 12-06-2013
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7/28/2019 Market Outlook, 12-06-2013
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Market OutlookJune 12, 2013
Dealers Diary
Indian shares are expected to open lower today, tracking weakness in the SGX
Nifty and most of the Asian indices.
After moving sharply lower at the start of trading on Tuesday, US stocks saw some
volatility over the course of the session but maintained a negative bias throughout
the day. The weakness visible on Wall Street was partly due to a negative reaction
to the Bank of Japan's latest monetary policy decision to retain its target of
doubling the monetary base in two years but not announcing any new steps to curb
bond market volatility. Meanwhile, the European markets ended Tuesday's session
firmly in negative territory. European markets took a cue from the strong declines
in Asia, after the Bank of Japan failed to expand stimulus measures.
Back home, Indian shares fell sharply on Tuesday on worries that a weaker rupee
would undermine the government's fiscal and economic measures that helped
spark a surge in FII inflows in recent months. The rupee fell to a record low of
58.98 early in the session before rebounding to 58.40 versus the dollar in the
afternoon, amid reports of dollar sales by PSU banks acting at the behest of the
RBI.
Markets Today
The trend deciding level for the day is 19,228 / 5,812 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 19,334 19,525 / 5,844 5,900 levels. However, if NIFTY trades below
19,228 / 5,812 levels for the first half-an-hour of trade then it may correct up to
19,037 18,930 / 5,757 5,725 levels.
Indices S2 S1 PIVOT R1 R2SENSEX 18,930 19,037 19,228 19,334 19,525NIFTY 5,725 5,757 5,812 5,844 5,900
News Analysis Tech Mahindra, Mahindra Satyam get court nod for merger Ashok Leyland plans to raise `300cr via bond issue
Refer detailed news analysis on the following page
Net Inflows (June 10, 2013)` cr Purch Sales Net MTD YTDFII 2,543 2,333 211 1,460 83,296
MFs 234 389 (156) (353) (12,430)
FII Derivatives (June 11, 2013)` cr Purch Sales Net Open InterestIndex Futures 2,192 4,050 (1,858) 7,924
Stock Futures 2,072 2,505 (433) 28,554
Gainers / LosersGainers Losers
Company Price (`) chg (%) Company Price (`) chg (%)Satyam Comp 111 4.2 Jindal Steel 226 (15.2)
Tech Mahindra 968.200 2.9 JSW ENERGY 49 (11.2)
Divis Lab 960.20 2.8 Titan Inds 236 (10.9)
Glenmark Pharma 570 2.8 Wockhardt 1,082 (10.0)IPCA Lab 620 2.6 Bata India 806 (7.5)
Domestic Indices Chg (%) (Pts) (Close)BSE Sensex (1.5) (298) 19,143
Nifty (1.5) (89) 5,789
MID CAP (1.6) (101) 6,230
SMALL CAP (1.8) (108) 5,807
BSE HC (0.6) (52) 8,747
BSE PSU (2.0) (133) 6,369
BANKEX (2.2) (310) 13,518
AUTO (1.3) (136) 10,692
METAL (4.1) (343) 7,976
OIL & GAS (1.5) (125) 8,372
BSE IT (0.7) (41) 6,159
Global Indices Chg (%) (Pts) (Close)Dow Jones (0.8) (117) 15,122NASDAQ (1.1) (37) 3,437
FTSE (0.9) (60) 6,340
Nikkei (1.5) (197) 13,318
Hang Sang (1.2) (260) 21,355
Straits Times (0.9) (30) 3,170
Shanghai Com (1.3) (30) 2,211
Indian ADR Chg (%) (Pts) (Close)INFY (1.2) (0.5) $42.6
WIT (0.7) (0.0) $7.4IBN (5.5) (2.4) $40.6
HDB (3.8) (1.4) $36.9
Advances / Declines BSE NSEAdvances 670 286
Declines 1,691 1,057
Unchanged 125 81
Volumes (` cr)BSE 2,035
NSE 11,436
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Market OutlookJune 12, 2013
Tech Mahindra, Mahindra Satyam get court nod for merger
The Andhra Pradesh High Court on Tuesday cleared the decks for the merger of
Tech Mahindra and Mahindra Satyam - which will create the fifth largest Indian
information technology firm - after it dismissed petitions against the move. In total,
justice NRL Nageswara Rao dismissed petitions filed by 35 entities, including those
from family members of Satyam's founder Ramalinga Raju, two entities owned by
engineering and construction firm IL&FS and minority shareholders who had
opposed the merger. However, the court said all investigations into the accounting
fraud at Satyam would continue. Mahindra Satyam and Tech Mahindra had
obtained the approvals of most of the stakeholders a year ago, including the stock
exchanges, Competition Commission of India and Mumbai High Court, but the
merger could not be completed without the AP High Court's approval which the
company has got now. The boards of both the companies had already proposed a
swap ratio of 2:17 (for every 17 shares held in Mahindra Satyam, shareholderswill get two shares in Tech Mahindra).
The merger will result in the creation of a new offshore services leader with
revenues of ~US$2.5bn in revenues, approximately 80,000+ strong work force
and 350+ active clients (including Fortune Global 500 companies), across 54
countries. This will enable Tech Mahindra to compete with biggies of the industry
and vie for larger deals, which could lead to improved traction for the merged
entity, acting as a catalyst for topline growth. The combined entity will have a
broader service offering. As of now, Tech Mahindra's entire revenue comes from
the telecom vertical, which has been shrinking over the past couple of years. After
the merger, contribution from telecom would come down to sub-50% (47-48%).The combined entity will have a broad based play across industries such as
manufacturing, BFSI, telecom, technology, media and entertainment (TME), retail,
transport and logistics and lifesciences and healthcare. We continue to remainpositive on Tech Mahindra with a target price of `1,170.
Ashok Leyland plans to raise `300cr via bond issue
According to media reports, Ashok Leyland is planning to raise `300cr via dual
tranche bonds. The company is likely to issue three year bonds at 9.45% and five
year bonds at 9.60% according to the reports. Although there has been noinformation regarding the usage of the funds, we believe the company would
utilize the bond proceeds towards capital expenditure. Ashok Leyland intends to
incur capital expenditure and investments worth `500cr in FY2014 after incurring
`1,600cr in FY2013. We do not see a significant change in companys net debt:
equity ratio (currently at 0.3x) post the issue considering that the company also
intends to reduce its working capital loans by`500cr in FY2014. At `21, the stock
is trading at 9.5x FY2015E earnings. We maintain our Buy rating on the stock witha target price of `27.
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Market OutlookJune 12, 2013
Economic and Political News
Fundamentals for India are improving, says Raghuram Rajan Car sales dip for seventh month; SIAM warns of job cuts Airlines under CCI scanner for cargo fuel surcharge Coal Ministry slaps notice on NTPC, SAIL, 10 othersCorporate News
Fortis Healthcare to sell Vietnam unit stake for $80mn CBI files FIR against JSPL group firms, stock plunges Infosys on global hunt for CEO; non-founder may take over
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
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Global economic events release calendar
Date Time Country Event Description Unit Period Bloomberg Data
Last Reported Estimated
June 12, 2013 11:00AM India Industrial Production YoY % Change Apr 2.50 2.50
2:00PM UK Jobless claims change % Change May (7.30) (5.00)
June 13, 2013 6:00PM US Initial Jobless claims Thousands Jun 8 346.00 346.00
June 14, 2013 12:00PM India Monthly Wholesale Prices YoY% % Change May 4.89 4.87
2:30PM Euro Zone Euro-Zone CPI (YoY) % May F 1.20 1.40
6:00PM US Producer Price Index (mom) % Change May (0.70) 0.10
6:45PM US Industrial Production % May (0.53) 0.20
June 17, 2013 11:00AM India RBI Repo rate % Jun 17 7.25 7.25
11:00AM India RBI Cash Reserve ratio % Jun 17 4.00 4.00
11:00AM India RBI Reverse Repo rate % Jun 17 6.25 6.25
June 18, 2013 2:00PM UK CPI (YoY) % Change May 2.40 --
6:00PM US Housing Starts Thousands May 853.00 950.00
6:00PM US Building permits Thousands May 1,005.00 988.00
6:00PM US Consumer price index (mom) % Change May (0.40) 0.20
June 19, 2013 11:30PM US FOMC rate decision % Jun 19 0.25 0.25
June 20, 2013 1:00PM Germany PMI Manufacturing Value Jun A 49.40 --
1:00PM Germany PMI Services Value Jun A 49.70 --
7:30PM Euro Zone Euro-Zone Consumer Confidence Value Jun A (21.90) --
7:30PM US Existing home sales Million May 4.97 5.00
June 25, 2013 7:30PM US Consumer Confidence S.A./ 1985=100 Jun 76.20 --
7:30PM US New home sales Thousands May 454.00 --
June 26, 2013 6:00PM US GDP Qoq (Annualised) % Change 1Q T 2.40 --
June 27, 2013 1:25PM Germany Unemployment change (000's) Thousands Jun 21.00 --
2:00PM UK GDP (YoY) % Change 1Q F 0.60 --July 1, 2013 6:30AM China PMI Manufacturing Value Jun 50.80 --
2:00PM UK PMI Manufacturing Value Jun 51.30 --
July 4, 2013 4:30PM UK BOE Announces rates % Ratio Jul 4 0.50 0.50
5:15PM Euro Zone ECB announces interest rates % Jul 4 0.50 --
July 5, 2013 6:00PM US Change in Nonfarm payrolls Thousands Jun 175.00 --
6:00PM US Unnemployment rate % Jun 7.60 --
July 9, 2013 7:00AM China Consumer Price Index (YoY) % Change Jun 2.10 --
July 10, 2013 4:29PM China Exports YoY% % Change Jun 1.00 --
July 15, 2013 7:30AM China Industrial Production (YoY) % Change Jun 9.20 --
7:30AM China Real GDP (YoY) % Change 2Q 7.70 --
Source: Bloomberg, Angel Research
June 12, 2013
Market Outlook
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Market OutlookJune 12, 2013
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Macro watch
Exhibit 1:Q uarterly G D P trends
Source: CSO, Angel Research
Exhibit 2:IIP trends
Source: MOSPI, Angel Research
Exhibit 3:M onthly WPI inflation trends
Source: MOSPI, Angel Research
Exhibit 4:M a nufacturing a nd services PM I
Source: Ma rket, Angel Research; N ote: Level above 50 ind icates expansion
Exhibit 5:Expo rts an d impo rts growth trends
Source: Bloomberg, Angel Research
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
(%)
(1.3)
2.5
(2.0)
(0.1)
2.0
(0.7)
8.4
(1.0) (0.6)
2.4
0.5
2.5
(4.0)
(2.0)
-
2.0
4.0
6.0
8.0
10.0
Apr-12
May-1
2
Jun-1
2
Jul-12
Aug-1
2
Sep-1
2
Oc-1
2
No-1
2
Dec-1
2
Jan-1
3
Feb
-13
Mar-13
(%)
7.6 7.58.0 8.1
7.3 7.2 7.3 7.3 7.3
6.0
4.9
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Jun-1
2
Jul-12
Aug-1
2
Sep-1
2
Oc-1
2
No-1
2
Dec-1
2
Jan-1
3
Feb
-13
Mar-13
Apr-13
(%)
48.0
50.0
52.0
54.0
56.0
58.0
Mar-12
Apr-12
May-1
2
Jun-1
2
Jul-12
Aug-1
2
Sep-1
2
Oc-1
2
Nov-1
2
Dec-1
2
Jan-1
3
Feb
-13
Mar-13
Apr-13
May-1
3
Mfg. PMI Services PMI
(15.0)
0.0
15.0
May-1
2
Jun-1
2
Jul-12
Aug-1
2
Sep-1
2
Oc-1
2
No-1
2
Dec-1
2
Jan-1
3
Feb
-13
Mar-13
Apr-13
Exports yoy growth Imports yoy growth(%)
7.25
6.25
4.003.00
4.00
5.00
6.00
7.00
8.00
9.00
Jun-1
2
Jul-12
Aug-1
2
Sep-1
2
Oc-1
2
No-1
2
Dec-1
2
Jan-1
3
Feb
-13
Mar-13
Apr-13
Ma-1
3
Repo rate Reverse Repo rate CRR(%)
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7/28/2019 Market Outlook, 12-06-2013
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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 142 - 2,753 1,657 1,906 14.1 14.1 7.7 8.9 18.4 15.9 3.8 3.3 22.2 21.9 1.6 1.4
United Phosphorus Buy 149 232 6,599 10,298 11,310 16.5 16.5 20.5 23.2 7.3 6.4 1.2 1.0 18.0 17.4 0.6 0.5
Auto & Auto Ancillary
Amara Raja Batteries Accumulate 251 285 4,295 3,418 3,892 14.5 14.5 18.5 20.4 13.6 12.4 3.3 2.7 26.6 23.8 1.3 1.1
Apollo Tyres Buy 89 104 4,501 13,852 15,487 11.4 11.5 12.8 14.9 7.0 6.0 1.1 1.0 17.5 17.3 0.5 0.4
Ashok Leyland Buy 21 27 5,614 14,038 16,442 7.6 8.7 1.1 2.2 20.2 9.5 1.7 1.5 6.2 12.5 0.5 0.4
Automotive Axle# Neutral 234 - 354 834 965 9.3 10.6 17.3 27.1 13.6 8.7 1.3 1.2 9.5 14.0 0.5 0.4Bajaj Auto Buy 1,783 2,056 51,601 22,684 25,908 18.0 18.5 117.3 137.1 15.2 13.0 5.5 4.4 39.9 37.2 1.9 1.6
Bharat Forge Neutral 226 - 5,252 6,198 6,793 14.6 14.9 14.5 17.3 15.5 13.0 2.0 1.8 13.6 14.7 1.0 0.8
Bosch India* Neutral 9,223 - 28,958 9,821 11,394 17.0 17.3 373.5 438.7 24.7 21.0 4.4 3.8 18.0 17.9 2.6 2.2
CEAT Buy 109 170 373 5,325 5,974 8.4 8.3 40.8 48.5 2.7 2.3 0.4 0.4 17.3 17.6 0.2 0.2
Exide Industries Accumulate 131 150 11,097 7,053 8,061 14.2 14.5 7.8 9.1 16.7 14.3 2.8 2.4 18.1 18.2 1.3 1.1
FAG Bearings* Neutral 1,440 - 2,393 1,525 1,742 14.5 15.7 88.4 109.5 16.3 13.2 2.4 2.0 15.5 16.5 1.4 1.2
Hero Motocorp Accumulate 1,650 1,819 32,939 25,274 27,658 14.1 13.7 110.2 139.9 15.0 11.8 5.5 4.3 39.8 40.7 1.1 1.0
JK Tyre Buy 115 154 472 7,972 8,754 7.1 7.1 37.5 44.0 3.1 2.6 0.5 0.4 16.4 16.6 0.3 0.3
Mahindra and Mahindra Buy 947 1,090 58,116 45,254 51,197 11.4 11.7 61.2 70.2 15.5 13.5 3.2 2.7 22.7 21.9 1.0 0.9
Maruti Buy 1,491 1,847 45,042 48,455 55,723 11.2 10.9 107.8 123.2 13.8 12.1 2.1 1.8 16.2 16.0 0.8 0.6
Motherson Sumi Accumulate 202 222 11,881 28,442 31,493 7.5 7.8 12.5 14.8 16.2 13.7 4.0 3.2 27.5 25.8 0.6 0.5
Subros Buy 23 30 139 1,479 1,685 10.0 9.9 5.5 7.5 4.2 3.1 0.5 0.4 11.1 13.7 0.4 0.3
Tata Motors Buy 293 347 78,499 215,016 237,404 13.3 13.6 36.2 41.5 8.1 7.1 1.8 1.5 24.6 23.2 0.4 0.4
TVS Motor Buy 35 41 1,668 7,715 8,584 6.0 6.1 5.0 5.8 7.1 6.1 1.2 1.1 18.1 18.5 0.2 0.1
Capital Goods
ABB* Sell 601 461 12,740 8,073 9,052 5.5 6.9 11.5 16.9 52.2 35.5 4.8 4.6 9.3 13.1 1.5 1.3BGR Energy Neutral 144 - 1,036 4,114 4,886 11.4 10.7 24.9 28.0 5.8 5.1 0.8 0.7 25.2 22.6 0.6 0.5
BHEL Neutral 182 - 44,424 44,054 39,326 16.8 15.1 20.6 16.1 8.8 11.3 1.9 1.7 23.5 16.1 0.9 1.0
Blue Star Buy 163 230 1,461 2,896 3,087 5.6 6.2 9.3 11.7 17.5 13.9 2.9 2.5 17.6 19.2 0.6 0.5
Crompton Greaves Buy 89 117 5,687 13,446 15,272 6.7 7.6 6.6 8.9 13.4 10.0 1.5 1.3 11.4 14.0 0.5 0.5
Jyoti Structures Neutral 23 - 191 3,360 3,597 9.7 9.8 7.3 10.2 3.2 2.3 0.7 0.6 8.8 11.4 0.3 0.3
KEC International Buy 38 63 967 7,709 8,399 6.7 7.2 6.1 8.5 6.2 4.4 0.8 0.7 20.2 23.0 0.3 0.3
Thermax Neutral 587 - 6,998 5,780 6,430 9.5 9.6 29.8 33.0 19.7 17.8 3.3 2.9 17.9 17.4 1.0 0.9
Cement
ACC Accumulate 1,226 1,361 23,018 11,979 13,254 19.7 21.3 77.1 91.4 15.9 13.4 2.8 2.5 18.7 20.0 1.6 1.4
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Market Outlook
Stock Watch
June 12, 2013
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7/28/2019 Market Outlook, 12-06-2013
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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
Cement
Ambuja Cements Neutral 176 - 27,105 10,232 11,762 23.5 24.5 10.3 12.2 17.1 14.5 2.8 2.6 17.2 18.6 2.1 1.7
India Cements Neutral 62 - 1,915 4,929 5,434 17.4 17.1 8.9 10.9 7.0 5.7 0.5 0.5 7.7 9.1 0.7 0.6
J K Lakshmi Cement Buy 115 143 1,350 2,247 2,742 21.0 23.1 17.8 21.8 6.4 5.3 0.9 0.8 15.5 16.4 0.5 0.9
Madras Cements Neutral 237 - 5,636 4,234 4,788 23.9 24.0 18.5 22.8 12.8 10.4 2.1 1.8 17.2 18.2 1.7 1.4
Shree Cement^ Neutral 4,707 - 16,397 6,540 7,452 27.4 26.6 319.7 369.9 14.7 12.7 3.6 2.9 27.5 25.4 1.9 1.4
UltraTech Cement Neutral 1,860 - 51,002 21,947 25,049 23.8 23.8 106.1 119.8 17.5 15.5 2.9 2.5 17.7 17.3 2.4 2.1
ConstructionAshoka Buildcon Buy 201 255 1,056 1,928 2,234 21.0 21.5 18.0 22.2 11.2 9.1 1.0 0.9 10.2 10.1 1.9 1.9
Consolidated Co Neutral 10 - 182 2,281 2,492 5.9 6.9 0.7 2.0 14.5 4.9 0.3 0.3 2.3 6.5 0.3 0.3
IRB Infra Buy 115 157 3,814 3,997 4,312 45.5 46.4 15.7 16.6 7.3 6.9 1.1 1.0 15.2 14.5 3.4 3.6
ITNL Buy 167 230 3,235 7,444 8,041 27.4 28.9 29.8 32.1 5.6 5.2 0.8 0.7 14.9 14.2 2.5 2.6
IVRCL Infra Buy 16 29 493 5,673 5,892 8.1 8.4 1.4 1.8 11.1 8.8 0.2 0.2 2.0 2.6 0.5 0.5
Jaiprakash Asso. Buy 61 90 13,603 14,850 15,631 24.9 25.1 2.5 2.9 24.2 21.5 1.0 1.0 4.2 4.7 2.7 2.7
Larsen & Toubro Buy 1,405 1,761 86,558 68,946 78,040 10.5 10.5 77.9 88.3 18.0 15.9 2.6 2.3 15.5 15.6 1.4 1.2
Nagarjuna Const. Buy 29 42 736 6,167 6,945 8.0 8.2 2.7 3.6 10.7 7.9 0.3 0.3 2.7 3.6 0.5 0.5
Punj Lloyd Neutral 41 - 1,373 12,954 14,740 9.9 9.9 0.5 0.9 81.5 44.4 0.5 0.5 0.6 1.1 0.5 0.5
Sadbhav Engg. Buy 101 139 1,525 2,462 2,731 10.6 10.6 5.9 6.7 17.2 15.2 1.7 1.5 10.2 10.5 0.9 0.8
Simplex Infra Buy 95 131 468 6,308 7,033 9.5 9.6 11.9 18.7 8.0 5.1 0.4 0.3 4.5 6.7 0.5 0.5
Unity Infra Buy 28 41 209 2,146 2,339 13.7 13.8 11.0 11.5 2.6 2.5 0.2 0.2 9.3 9.0 0.6 0.6
Financials
Allahabad Bank Buy 110 144 5,488 6,876 7,545 2.6 2.5 28.2 30.9 3.9 3.6 0.6 0.5 12.8 12.7 - -
Andhra Bank Neutral 86 - 4,790 5,254 5,900 2.8 2.8 21.2 22.9 4.1 3.7 0.6 0.5 13.3 13.0 - -
Axis Bank Buy 1,320 1,853 61,875 19,055 22,710 3.3 3.2 130.7 152.3 10.1 8.7 1.6 1.4 17.2 17.6 - -Bank of Baroda Buy 652 851 27,468 16,365 18,781 2.2 2.3 121.3 142.5 5.4 4.6 0.8 0.7 15.1 15.7 - -
Bank of India Buy 286 350 17,019 14,482 16,383 2.3 2.3 58.1 68.1 4.9 4.2 0.7 0.6 14.4 15.0 - -
Bank of Maharashtra Buy 53 64 3,476 4,392 4,743 3.1 3.0 12.6 13.7 4.2 3.9 0.7 0.6 16.8 16.0 - -
Canara Bank Buy 393 481 17,421 11,928 13,467 2.1 2.2 74.8 86.0 5.3 4.6 0.7 0.7 13.7 14.2 - -
Central Bank Accumulate 64 69 6,711 8,249 9,211 2.4 2.5 14.9 18.2 4.3 3.5 0.6 0.6 12.5 13.8 - -
Corporation Bank Buy 377 495 5,768 5,558 6,121 2.0 2.0 98.4 107.7 3.8 3.5 0.6 0.5 14.9 14.5 - -
Dena Bank Buy 82 97 2,874 3,187 3,582 2.3 2.4 23.8 25.5 3.5 3.2 0.5 0.5 15.9 15.1 - -
Federal Bank Neutral 426 - 7,290 2,873 3,413 3.0 3.1 52.7 62.0 8.1 6.9 1.0 0.9 13.4 14.2 - -
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Market Outlook
Stock Watch
June 12, 2013
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7/28/2019 Market Outlook, 12-06-2013
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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
Financials
HDFC Accumulate 832 933 128,816 8,573 10,142 3.6 3.6 37.0 43.6 22.5 19.1 4.6 4.1 30.0 30.3 - -
HDFC Bank Accumulate 666 722 158,738 27,682 33,916 4.6 4.6 35.3 42.7 18.9 15.6 3.7 3.1 21.3 21.8 - -
ICICI Bank Buy 1,076 1,503 124,222 25,705 30,330 3.1 3.2 83.9 96.3 12.8 11.2 1.7 1.6 15.2 15.7 - -
IDBI Bank Buy 76 93 10,109 9,477 10,678 2.0 2.1 19.6 22.6 3.9 3.4 0.5 0.4 12.8 13.4 - -
Indian Bank Buy 133 185 5,727 6,185 6,978 3.0 3.0 37.0 42.2 3.6 3.2 0.5 0.5 14.8 15.1 - -
IOB Accumulate 58 66 5,332 8,142 8,956 2.5 2.5 16.5 20.7 3.5 2.8 0.4 0.4 11.8 13.4 - -
J & K Bank Neutral 1,273 - 6,172 3,074 3,140 3.5 3.2 224.7 201.5 5.7 6.3 1.1 1.0 20.6 16.1 - -LIC Housing Finance Buy 254 298 12,803 2,113 2,525 2.3 2.3 25.4 29.2 10.0 8.7 1.8 1.5 18.4 18.3 - -
Oriental Bank Buy 224 285 6,534 6,835 7,588 2.6 2.6 56.5 63.8 4.0 3.5 0.5 0.5 13.1 13.4 - -
Punjab Natl.Bank Buy 747 994 26,419 20,876 23,929 3.3 3.4 151.7 177.0 4.9 4.2 0.8 0.7 16.1 16.5 - -
South Ind.Bank Neutral 25 - 3,351 1,839 2,091 2.9 2.8 4.2 4.5 6.0 5.6 1.0 0.9 18.2 17.0 - -
St Bk of India Buy 1,998 2,637 136,646 67,243 76,612 3.1 3.0 242.4 284.8 8.2 7.0 1.3 1.1 16.3 16.8 - -
Syndicate Bank Accumulate 127 142 7,672 7,238 8,249 2.7 2.6 27.1 30.4 4.7 4.2 0.7 0.6 16.1 15.9 - -
UCO Bank Neutral 76 - 5,720 6,250 6,738 2.6 2.5 12.1 14.7 6.3 5.2 1.0 0.8 11.8 13.0 - -
Union Bank Buy 206 260 12,291 11,229 12,794 2.6 2.6 40.7 48.2 5.1 4.3 0.7 0.6 14.6 15.4 - -
United Bank Buy 50 65 1,855 3,443 3,998 2.4 2.6 15.1 20.4 3.3 2.4 0.4 0.4 12.1 14.8 - -
Vijaya Bank Neutral 50 - 2,480 2,730 3,059 1.9 2.0 10.2 11.3 4.9 4.4 0.6 0.5 11.8 12.0 - -
Yes Bank Neutral 472 - 16,960 4,390 5,411 2.8 2.8 41.6 47.9 11.4 9.9 2.4 2.0 23.2 22.1 - -
FMCG
Asian Paints Neutral 4,487 - 43,035 12,332 14,524 16.5 16.3 141.6 162.7 31.7 27.6 10.0 8.0 35.4 32.2 3.4 2.8
Britannia Neutral 691 - 8,270 6,417 7,502 6.1 6.3 23.2 27.9 29.9 24.8 10.3 8.0 38.3 36.4 1.3 1.1
Colgate Neutral 1,402 - 19,059 3,588 4,130 20.5 20.9 44.2 51.8 31.7 27.1 30.9 22.5 108.6 96.2 5.2 4.4
Dabur India Neutral 152 - 26,519 7,183 8,340 16.8 16.8 5.4 6.3 28.3 24.2 11.0 8.6 41.5 40.1 3.6 3.1
GlaxoSmith Con* Neutral 5,804 - 24,408 3,617 4,259 16.1 16.4 122.2 148.7 47.5 39.0 14.8 11.9 34.1 33.7 6.3 5.3
Godrej Consumer Neutral 836 - 28,443 7,801 9,017 16.2 15.9 25.1 29.7 33.3 28.2 7.2 6.0 24.9 24.2 3.8 3.2
HUL Neutral 593 - 128,245 29,167 33,164 13.6 13.7 17.1 18.4 34.7 32.2 33.4 24.2 113.4 87.0 4.2 3.7
ITC Neutral 335 - 264,909 34,294 39,991 36.8 37.0 11.3 13.3 29.7 25.1 9.8 7.9 36.1 34.9 7.4 6.3
Marico Neutral 230 - 14,814 5,273 6,044 14.8 14.9 7.3 8.7 31.7 26.5 6.2 5.1 21.4 21.0 2.8 2.4
Nestle* Neutral 5,089 - 49,064 9,447 10,968 22.1 22.3 127.5 154.1 39.9 33.0 19.9 14.4 57.7 50.7 5.2 4.4
Tata Global Neutral 143 - 8,818 8,069 8,957 9.8 9.7 7.8 8.6 18.2 16.6 2.2 2.1 9.5 9.7 1.1 0.9
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June 12, 2013
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7/28/2019 Market Outlook, 12-06-2013
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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
IT
HCL Tech^ Accumulate 756 863 52,686 28,633 32,216 21.5 20.7 57.3 61.7 13.2 12.3 3.1 2.6 24.0 21.5 1.7 1.4
Hexaware* Buy 82 96 2,455 2,091 2,289 19.0 18.8 10.6 11.3 7.8 7.3 1.7 1.5 22.8 21.7 1.0 0.9
Infosys Neutral 2,474 - 142,063 43,338 47,244 27.5 27.7 169.4 182.6 14.6 13.6 3.0 2.6 20.8 19.3 2.6 2.3
Infotech Enterprises Accumulate 172 185 1,923 1,956 2,174 17.9 17.7 20.4 21.9 8.4 7.9 1.2 1.1 14.7 13.7 0.6 0.5
KPIT Cummins Buy 117 135 2,249 2,513 2,819 16.1 15.5 12.6 14.0 9.3 8.3 1.6 1.3 17.9 16.6 0.9 0.7
Mahindra Satyam Accumulate 111 126 13,075 8,278 9,062 20.3 20.1 10.5 11.4 10.6 9.7 2.4 2.0 23.1 20.0 1.2 1.0
Mindtree Accumulate 819 920 3,404 2,599 2,871 19.4 19.2 85.2 92.3 9.6 8.9 2.0 1.6 21.4 18.9 1.0 0.8Mphasis& Reduce 421 395 8,838 6,096 6,646 17.6 17.4 38.1 41.6 11.0 10.1 1.6 1.4 14.2 13.7 1.0 0.8
NIIT Buy 21 30 343 1,144 1,267 9.0 9.1 4.3 5.4 4.8 3.9 0.5 0.5 10.3 12.0 0.1 -
Persistent Accumulate 517 593 2,069 1,445 1,617 25.2 25.0 55.3 59.3 9.4 8.7 1.7 1.4 18.2 16.5 1.0 0.8
TCS Accumulate 1,499 1,585 293,319 71,833 81,893 28.4 28.0 78.5 88.0 19.1 17.0 5.8 4.8 30.2 27.9 3.8 3.3
Tech Mahindra Buy 968 1,170 12,440 7,779 8,398 19.7 19.3 107.4 117.8 9.0 8.2 1.9 1.6 21.2 19.0 1.6 1.4
Wipro Accumulate 345 385 85,006 40,173 43,697 20.4 20.6 26.2 28.5 13.2 12.1 2.6 2.2 19.7 18.4 1.6 1.3
Media
D B Corp Buy 240 290 4,398 1,750 1,925 25.1 26.6 14.2 16.8 16.9 14.3 3.7 3.1 23.4 23.4 2.4 2.1
HT Media Buy 100 117 2,346 2,205 2,380 15.1 15.6 8.3 9.1 12.1 11.0 1.3 1.2 11.5 11.4 0.7 0.6
Jagran Prakashan Buy 89 119 2,962 1,664 1,825 20.9 23.0 6.4 7.8 13.9 11.5 2.8 2.5 21.0 23.1 1.9 1.7
PVR Neutral 328 - 1,299 1,359 1,540 17.3 17.4 17.2 21.6 19.0 15.2 1.9 1.8 10.3 12.0 1.4 1.2
Sun TV Network Neutral 417 - 16,420 2,287 2,551 69.7 70.5 20.0 23.3 20.8 17.9 5.2 4.5 26.4 27.3 6.8 6.0
Metals & Mining
Bhushan Steel Neutral 464 - 10,506 13,794 17,088 30.9 33.5 49.3 66.6 9.4 7.0 1.0 0.9 11.3 13.5 2.4 1.9
Coal India Accumulate 312 345 196,881 72,174 76,311 33.3 28.4 28.4 30.9 11.0 10.1 3.0 2.6 37.6 36.2 1.9 1.7
Electrosteel Castings Buy 14 24 472 1,976 2,017 11.8 12.7 1.3 2.6 11.5 5.6 0.1 0.1 2.6 5.2 0.6 0.1GMDC Buy 127 193 4,047 1,920 2,239 53.2 52.9 21.6 25.0 5.9 5.1 1.3 1.1 25.1 23.8 1.6 1.2
Hind. Zinc Buy 111 145 46,711 12,358 13,659 51.4 51.6 16.0 17.6 6.9 6.3 1.3 1.1 19.4 18.4 1.5 1.0
Hindalco Neutral 95 - 18,102 89,352 93,672 8.8 9.2 13.4 15.0 7.1 6.3 0.5 0.5 7.3 7.6 0.5 0.5
JSW Steel Neutral 706 - 15,745 39,973 40,926 17.2 17.0 71.9 82.8 9.8 8.5 0.9 0.8 9.0 9.6 0.7 0.7
MOIL Buy 201 248 3,373 1,010 1,046 46.5 47.6 26.8 28.8 7.5 7.0 1.1 1.0 15.4 14.7 0.9 0.7
Monnet Ispat Buy 120 193 765 2,326 2,709 21.4 23.1 33.3 43.1 3.6 2.8 0.3 0.3 8.3 9.9 1.3 1.0
Nalco Neutral 31 - 7,925 7,656 7,988 13.1 13.5 2.6 2.6 12.1 11.7 0.7 0.6 5.5 5.5 0.5 0.5
NMDC Buy 114 156 45,138 10,461 11,892 71.6 72.6 16.3 17.6 7.0 6.5 1.5 1.3 22.1 21.4 2.5 2.2
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June 12, 2013
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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
Metals & Mining
SAIL Neutral 55 - 22,798 44,060 54,786 9.4 11.5 5.2 7.2 10.6 7.7 0.6 0.5 5.2 6.8 0.8 0.7
Sesa Goa Accumulate 147 166 12,798 3,742 4,426 32.9 32.8 30.0 29.8 4.9 4.9 0.7 0.6 14.3 12.5 4.2 3.5
Sterlite Inds Buy 85 100 28,683 44,462 45,568 23.2 24.7 18.1 20.2 4.7 4.2 0.5 0.5 11.3 11.4 0.6 0.5
Tata Steel Buy 282 378 27,340 140,917 151,537 9.7 10.8 30.9 47.6 9.1 5.9 0.8 0.8 9.6 13.4 0.6 0.5
Sarda Buy 103 153 370 1,494 1,568 19.1 20.3 31.3 36.5 3.3 2.8 0.4 0.3 11.8 12.4 0.6 0.5
Prakash Industries Buy 30 45 405 2,615 2,776 12.1 12.0 9.8 10.4 3.1 2.9 0.2 0.2 6.5 6.5 0.4 0.4
Godawari Power andIspat Buy 78 102 254 2,344 2,509 14.9 15.4 38.7 47.0 2.0 1.7 0.2 0.2 12.3 12.9 0.5 0.4
Oil & Gas
Cairn India Buy 289 345 55,217 16,482 16,228 69.4 53.3 53.3 49.6 5.4 5.8 0.8 0.8 16.5 13.6 2.0 1.7
GAIL Neutral 306 - 38,765 52,102 52,876 15.7 16.1 34.1 35.7 9.0 8.6 1.4 1.2 16.4 15.3 0.3 0.2
ONGC Buy 309 372 263,937 170,063 193,024 36.3 36.9 34.7 38.3 8.9 8.1 1.5 1.4 18.3 17.9 1.3 1.0
Reliance Industries Neutral 786 - 253,890 380,031 407,721 9.9 69.3 69.3 78.0 11.4 10.1 1.1 1.0 11.5 11.7 0.6 0.6
Gujarat Gas* Neutral 205 - 2,623 3,707 3,850 11.7 12.4 23.7 25.7 8.6 8.0 2.4 2.1 29.6 28.2 0.6 0.5
Indraprastha Gas Neutral 284 - 3,980 3,700 4,218 23.4 22.8 26.7 30.4 10.7 9.3 2.2 1.9 22.7 21.8 1.2 0.9
Petronet LNG Buy 136 167 10,200 40,356 40,872 5.8 6.4 15.0 16.7 9.1 8.1 1.9 1.6 23.0 21.5 0.3 0.3
Gujarat State PetronetLtd.
Neutral 55 - 3,092 1,171 1,287 91.9 91.9 10.1 11.3 5.5 4.9 0.9 0.8 17.3 16.8 - -
Pharmaceuticals
Alembic Pharma Neutral 134 - 2,527 1,736 2,008 17.1 18.9 10.7 13.9 12.5 9.6 3.9 3.0 35.0 34.7 1.5 1.3
Aurobindo Pharma Buy 172 271 5,009 6,641 7,637 15.9 15.9 17.3 20.6 9.9 8.4 1.6 1.3 19.5 18.9 1.2 1.0
Aventis* Neutral 2,509 - 5,778 1,682 1,917 16.6 16.6 92.4 99.1 27.2 25.3 3.8 3.8 15.7 14.8 3.1 2.5
Cadila Healthcare Buy 756 929 15,471 7,280 8,640 15.5 15.7 38.3 46.5 19.7 16.3 4.2 3.5 23.5 23.5 2.4 2.0
Cipla Buy 380 477 30,539 9,274 10,796 23.1 23.1 21.0 23.8 18.1 16.0 2.9 2.5 17.2 16.8 3.0 2.5Dr Reddy's Buy 2,185 2,535 37,094 13,377 15,350 20.4 20.1 112.3 126.8 19.5 17.2 4.2 3.4 23.5 21.8 2.9 2.5
Dishman Pharma Buy 65 168 527 1,394 1,534 22.5 22.4 15.0 16.8 4.4 3.9 0.5 0.4 11.0 11.2 1.0 0.8
GSK Pharma* Neutral 2,427 - 20,558 2,854 3,145 28.6 28.6 76.6 83.3 31.7 29.1 9.5 8.6 31.1 31.0 6.3 5.7
Indoco Remedies Buy 62 78 573 760 922 15.3 15.3 6.1 7.8 10.2 8.0 1.3 1.1 12.9 14.7 1.0 0.8
Ipca labs Accumulate 620 665 7,822 3,243 3,826 20.5 21.5 36.0 44.4 17.2 14.0 4.0 3.2 26.0 25.4 2.6 2.1
Lupin Buy 754 877 33,760 11,641 13,933 21.3 21.3 34.8 41.8 21.7 18.0 5.1 4.0 26.2 24.8 2.9 2.4
Ranbaxy* Neutral 379 - 16,029 11,400 12,060 10.5 12.5 17.5 22.5 21.7 16.8 3.5 3.0 17.0 19.1 1.4 1.2
Sun Pharma Neutral 984 - 101,718 13,509 15,846 41.0 41.0 33.0 39.8 29.8 24.7 6.0 5.0 22.0 22.0 7.0 5.8
Power
GIPCL Accumulate 72 78 1,094 1,444 1,482 33.4 33.0 13.7 14.8 5.3 4.9 0.6 0.6 12.3 12.0 0.8 0.6
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June 12, 2013
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7/28/2019 Market Outlook, 12-06-2013
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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
Power
NTPC Accumulate 150 163 123,929 76,734 86,680 24.5 24.3 13.4 14.5 11.2 10.4 1.4 1.3 12.8 12.7 2.3 2.2
Real Estate
DLF Buy 187 236 33,263 8,293 9,622 36.5 36.1 5.7 6.7 32.7 27.7 1.2 1.1 3.7 4.1 6.1 5.1
MLIFE Buy 393 476 1,605 888 1,002 30.6 30.6 38.8 43.4 10.1 9.1 1.1 1.0 11.2 11.4 2.4 2.1
Telecom
Bharti Airtel Buy 279 338 105,780 86,592 95,860 31.4 31.8 10.9 14.5 25.6 19.2 2.0 1.8 7.7 9.3 1.9 1.6
Idea Cellular Neutral 131 - 43,264 25,122 27,663 27.0 27.2 4.0 4.8 32.9 27.4 2.7 2.5 8.3 9.1 2.1 1.9Rcom Neutral 104 - 21,456 22,801 24,628 31.0 31.3 3.6 5.3 29.2 19.7 0.6 0.6 2.2 3.1 2.5 2.2
Others
Abbott India* Accumulate 1,461 1,659 3,105 1,863 2,081 11.8 12.4 71.2 83.0 20.5 17.6 4.1 3.5 21.6 21.5 1.4 1.1
Bajaj Electricals Buy 169 237 1,681 3,885 4,472 5.4 7.2 11.0 19.7 15.4 8.5 2.1 1.7 13.5 20.3 0.4 0.4
Cera Sanitaryware Accumulate 518 562 655 630 795 14.4 13.6 42.8 51.1 12.1 10.1 2.9 2.3 26.6 25.2 1.0 0.8
Cravatex Buy 330 459 85 248 284 6.5 7.3 27.2 38.2 12.2 8.6 1.9 1.6 15.7 18.5 0.5 0.5
Finolex Cables Buy 52 68 796 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 286 437 373 2,304 2,649 3.1 3.6 28.0 43.7 10.2 6.6 0.3 0.3 3.1 4.7 0.1 0.1
Goodyear India* Accumulate 321 345 740 1,458 1,542 8.3 9.0 32.3 37.0 9.9 8.7 1.8 1.6 19.5 19.3 0.3 0.3
Hitachi Buy 134 177 364 1,053 1,169 6.3 7.1 13.8 17.7 9.7 7.5 1.4 1.2 15.0 16.7 0.4 0.3
Honeywell Automation* Neutral 2,430 - 2,148 1,842 2,131 7.7 7.8 112.4 132.4 21.6 18.4 2.7 2.4 13.3 13.8 1.1 0.9
IFB Agro Buy 160 198 144 495 651 12.7 12.9 29.3 39.5 5.5 4.1 0.8 0.7 15.4 17.6 0.4 0.3
ITD Cementation Buy 163 234 188 1,430 1,573 11.1 11.0 19.1 26.9 8.6 6.1 0.5 0.4 4.9 6.3 0.5 0.5
Jyothy Laboratories Neutral 194 - 3,133 1,220 1,476 13.3 13.6 5.5 9.0 35.2 21.5 4.1 3.6 12.1 17.7 2.9 2.3
MRF Neutral 14,486 - 6,144 11,799 12,587 14.1 13.5 1,792.4 1,802.0 8.1 8.0 1.7 1.4 23.5 19.2 0.6 0.6
Page Industries Accumulate 4,057 4,611 4,525 1,057 1,282 19.4 19.6 124.8 153.7 32.5 26.4 16.1 11.9 56.3 51.8 4.4 3.6Relaxo Footwears Buy 656 791 787 1,146 1,333 10.9 11.4 45.9 60.9 14.3 10.8 3.0 2.4 23.0 24.6 0.9 0.7
Siyaram Silk Mills Buy 250 343 234 1,158 1,322 11.9 11.9 72.9 85.7 3.4 2.9 0.6 0.5 19.9 19.6 0.4 0.4
Styrolution ABS India* Buy 416 617 732 1,068 1,223 9.6 9.6 38.1 44.1 10.9 9.4 1.5 1.3 14.5 14.7 0.7 0.6
TAJ GVK Buy 61 108 382 300 319 35.8 36.2 7.9 9.1 7.7 6.7 1.0 0.9 13.9 14.4 1.6 1.3
Tata Sponge Iron Buy 283 371 435 814 849 17.0 17.6 64.6 69.2 4.4 4.1 0.6 0.5 14.5 13.8 0.1 -
TTK Healthcare Buy 499 686 387 435 516 6.2 7.1 24.3 33.3 20.5 15.0 3.4 2.9 17.6 20.8 0.7 0.6
Tree House Accumulate 275 297 990 153 194 53.0 52.8 12.4 15.6 22.2 17.6 2.6 2.3 11.8 13.1 6.7 5.1
TVS Srichakra Buy 190 252 146 1,591 1,739 6.1 6.6 24.5 41.9 7.8 4.5 0.8 0.7 10.9 17.2 0.3 0.3
United Spirits Neutral 2,489 - 36,170 12,294 14,162 12.0 12.0 42.1 67.7 59.1 36.8 4.2 3.8 9.1 10.7 3.3 2.8
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June 12, 2013
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7/28/2019 Market Outlook, 12-06-2013
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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
Others
Vesuvius India* Buy 365 439 741 600 638 20.1 19.4 35.7 36.6 10.2 10.0 1.8 1.6 19.4 17.1 1.0 0.9
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on June 11, 2013
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Market OutlookJune 12, 2013