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Market OutlookDecember 3, 2012
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Market OutlookDecember 3, 2012
Dealers Diary
The Indian market is expected to open flat to positive mirroring positive opening in
the SGX Nifty and major Asian indices. Most of the Asian stocks gained, with the
regional benchmark index heading for its highest close in seven months, aftergauges of Chinese manufacturing expanded last month, signaling faster growth in
the worlds No. 2 economy.
The US markets showed a lack of direction throughout much of the trading day on
Friday before ending the session roughly flat. Continued uncertainty about the
looming fiscal cliff contributed to the lackluster performance on Wall Street.
Meanwhile, The European markets finished with mixed results on Friday, after
some weak European economic data and concerns over the looming fiscal cliff in
the United States. Investors continue to worry that a deal on the fiscal cliff may not
be reached before the end of the year, after statements made yesterday by
Congressional leaders.
Indian shares extended gains for a fourth straight session on Friday onexpectations that the government would be able to push through economic reforms
in Parliament. Stocks pared early gains in the afternoon, but picked up steam later
after the government proposed to set up a National Investment Board to monitor
and advise ministries for expediting clearance to projects entailing investments in
excess of `1,000cr. The three year low GDP figure of 5.3% released on Friday did
not evoke any sharp response from the markets.
Markets Today
The trend deciding level for the day is 19,300 / 5,864 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 19,413 19,486 / 5,901 5,922 levels. However, if NIFTY trades below19,300 / 5,864 levels for the first half-an-hour of trade then it may correct up to
19,227 19,113 / 5,843 5,807 levels.
SENSEX 19,113 19,227 19,300 19,413 19,486NIFTY 5,807 5,843 5,864 5,901 5,922
News Analysis
Recovery in services sector drives headline real GDP growth DRL- Voluntarily recalls bottles of Quetiapine Fumerate Auto sales numbers November 2012
Refer detailed news analysis on the following page
Net Inflows (November 29, 2012)
FII 7,351 5,362 1,989 9,307 103,359
MFs 274 483 (209) (1,266) (16,473)
FII Derivatives (November 30, 2012)
Index Futures 2,294 1,698 596 10,870
Stock Futures 2,570 2,583 (13) 29,938
Gainers / Losers
Ultratech Cem 2,065 7.9 Zee Entert 195 (3.6)
Bayer Crop 1,294 5.9 Container Corp 931 (3.0)
Jindal Steel 402 5.4 United Spirits 1,992 (2.4)
Suzlon Energy 20 5.4 Idea Cellular 97 (2.3)
Oriental Bank 337 5.1 Mcleod Russel 352 (2.3)
BSE Sensex 0.9 169.0 19,340
Nifty 0.9 54.8 5,880
MID CAP 1.1 75.0 6,902
SMALL CAP 0.8 59.5 7,276
BSE HC 0.5 42.8 7,946
BSE PSU 1.7 119.8 7,178
BANKEX 1.5 200.9 13,952
AUTO (0.3) (35.0) 10,814
METAL 2.1 210.3 10,355
OIL & GAS 1.1 88.0 8,252
BSE IT 0.6 32.6 5,888
Dow Jones 0.0 3.8 13,026NASDAQ (0.1) (1.8) 3,010
FTSE (0.1) (3.5) 5,867
Nikkei 0.5 45.1 9,446
Hang Seng 0.5 107.5 22,030
Straits Times 0.8 24.1 3,070
Shanghai Com 0.9 16.6 1,980
INFY (0.5) (0.2) $44.5
WIT 1.7 0.1 $8.8IBN (1.3) (0.5) $41.0
HDB (1.7) (0.7) $42.1
Advances 1,687 939
Declines 1,286 587
Unchanged 116 74
BSE 2,965
NSE 20,387
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Market OutlookDecember 3, 2012
Recovery in services sector drives headline real GDP growth
Real GDP growth for 2QFY2013 came in line with expectations at 5.3%, yoy,
decelerating from 5.5% yoy growth in 1QFY2013 and 6.7% yoy growth in the
corresponding quarter of the previous year. Growth for 2QFY2013 has been
largely driven by the healthy growth in the services sector (weightage: 60%).
Agriculture, forestry and fishing reported subdued growth of 1.2% yoy as against
2.9% yoy in 1QFY2013 and 3.1% yoy in 2QFY2012. This can be mainly attributed
to the estimated decline in FY2013 kharif production of rice (by 6.5%), coarse
cereals (by 18.4%), pulses (by 14.5%) and oilseeds (by 9.6%) as compared to the
production in 2QFY2012. We believe that the deceleration in kharif production is
likely to continue weighing on agricultural growth in the next quarter.
The industrial sector reported a growth of 2.8% yoy, supported by growth in
construction. On a positive note, the mining sector reported 1.9% yoy growth as
compared to a muted 0.1% yoy growth in the previous quarter mainly due to a low
base. Manufacturing alone contributes to more than 50% to industrial growth and
it reported marginal growth of 0.8% yoy as against 0.2% yoy in the previous
quarter. Electricity, gas and water supply as well as construction growth
decelerated to 3.4% yoy and 6.7% yoy during 2QFY2013 as against 6.3% yoy and
10.9% yoy in the previous quarter.
The services sector, having the highest weightage in GDP reported healthy growth
of 7.2% yoy as compared to 6.9% yoy in the previous quarter although lower than
8.8% yoy growth in 2QFY2012. Growth in trade, hotels, transport and
communication (having about the same weightage as industry in overall growth)
improved to 5.5% yoy as compared to 4.0% yoy in 1QFY2013. While growth in
financing, insurance, real estate & business services as well as community, social
and personal services decelerated sequentially to 9.4% yoy and 7.5% yoy
respectively as compared to 10.8% yoy and 7.9% growth in 1QFY2013; on an
YTD basis it improved to 10.1% yoy and 7.7% yoy as compared to 9.6% yoy and
4.7% yoy in the April-September 2011 period.
The economy has witnessed a significant decline in its growth trajectory as
compared to the preceding quarters however we believe that growth has likely
bottomed out for the fiscal year. We expect industrial growth to stabilize at a lower
level for this fiscal year since manufacturing growth is unlikely to witness a
significant turn-around owing partly to a high base for 2HFY2013.
We expect the economy to grow at 5.7% for FY2013. We believe that the Reserve
bank is unlikely to cut its key policy rate in the December review since in the
growth-inflation dynamics the balance is titled in favor of inflation control at least
in the near term but we do expect a 25bp-50bp rate cut in 4QFY2013.
DRL- Voluntarily recalls bottles of Quetiapine Fumerate
According to information on the website of the US Food and Drug Administration
(USFDA), Dr Reddy's Laboratories Ltd has voluntarily recalled 1,512 bottles of
quetiapine fumerate tablets of 25 mg dosage in the US. This is unlikely to have a
major impact on companys financials, as the batch is very less.
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Market OutlookDecember 3, 2012
Auto sales numbers November 2012
Tata Motors
Tata Motors (TTMT) reported lower-than-expected volumes for November 2012
with total volumes registering a decline of 13.4% yoy (7.3% mom) to 66,500 units
primarily due to a sharp fall of 14% yoy (8.5% mom) in domestic sales. On the
domestic front, light commercial vehicle sales continued its strong momentum
posting a better-than-expected growth of 21.5% yoy (flat mom). However, the
medium and heavy commercial vehicle (MHCV) segment witnessed a steep decline
of 40.9% yoy (21.7% mom) leading to a 0.9% yoy (5.7% mom) decline in
commercial vehicle sales. The MHCV segment continues to be impacted by the
slowdown in the industrial activity and due to the lack of freight demand. On the
passenger vehicle front, total domestic volumes fell sharply by 35% yoy (14.6%
mom) largely on account of 41.2% yoy (15.9% mom) decline in passenger cars.
The passenger car volumes declined as Nano, Indica and Indigo posted a volume
decline of 45.3%, 36.3% and 50.4% yoy respectively.
Mahindra and Mahindra
Mahindra and Mahindra (MM) continued its strong volume traction, posting a
better-than-expected growth of 18.2% yoy (down 9.9% mom) in its automotive
segment to 48,143 units. The company witnessed a strong performance across the
product portfolio (ex. MNAL) during the month. However, the utility segment was
the primary driver of growth as sales witnessed a strong growth of 35.5% yoy
(down 9.3% mom) backed by the new launches XUV5OO, Quanto and Rexton.
While, the four-wheeler pick-up segment posted a healthy growth of 7.4% yoy(down 13.3% mom); the three-wheeler sales too jumped 16.6% yoy (down 1.5%
mom) during the month. Exports however posted a decline of 45.8% yoy (34.6%
mom), which surprised us negatively. Meanwhile, the management has
announced that Quanto has witnessed over 12,000 bookings since its launch.
Maruti Suzuki
Maruti Suzuki (MSIL) reported slightly lower-than-expected growth of 0.1% mom to
103,200 units primarily due to a decline of 13.2% mom (5.8% yoy) in the Mini
segment. On a yoy basis though, total sales jumped 12.5% driven by stronggrowth in the compact, super compact, utility vehicles and exports segments. While
Swift, Dzire and Ertiga contributed towards the strong performance of the
compact, super compact and utility vehicles segments respectively; exports growth
was led byA-Star. The vans segment continued its poor run posting a decline of
10% yoy (1.6% mom).
Hero MotoCorp
Hero MotoCorp (HMCL) registered poor volume performance during the month
with total sales posting a decline of 6.4% yoy (5.1% mom) to 502,305 units. The
company has stated that the dispatches were lower on account of the festival
holidays. We believe this could also be in order to avoid piling up of inventory at
the dealer end amidst slowdown in retail demand.
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Market OutlookDecember 3, 2012
TVS Motor
TVS Motor (TVSL) posted in-line volumes for November with total volumes
registering a decline of 2.1% yoy (9.6% mom) to 171,837 units primarily due to
15.4% yoy (14.8% mom) decline in scooter sales. The scooter sales were down
despite the festival demand as the segment continues to remain under pressuredue to heightened competitive intensity. The motorcycle sales however, posted a
growth of 4.9% yoy (down 9.6% mom) driven by the launch of the new 125cc
motorcycle, Phoenix. TVSL registered a better-than-expected growth in three-
wheeler sales (86.8% yoy) led by an impressive exports growth of 81.4% yoy
(36.3% mom). The company recorded excellent retail sales during the festival
season with domestic sales of 185,000 units, a growth of around 19% yoy.
Economic and Political News
Core sector grows by 6.5% in October Fiscal deficit at 7.3% of GDP in first six months Government considering raising LPG cap: Moily Pay in full for 2G spectrum to adjust earlier entry fee: Government to telcos Retail inflation inches to 9.6% in Oct
Corporate News
Bharti Infratel IPO to raise `4,000cr to `4,700 cr CIL not to supply coal to power units through MoUs Infosys to shift U.S. listing from Nasdaq to NYSE Euronext Maran to increase 5% stake in SpiceJet Ranbaxy stops production of its generic Lipitor: USFDA Thermax bags `503cr EPC order for a captive power plantSource: 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
December 3, 2012 2:25PM Germany PMI Manufacturing Value Nov F 46.80 46.80
January 1, 1900 3:00PM UK PMI Manufacturing Value Nov 47.50 48.00
December 5, 2012 2:25PM Germany PMI Services Value Nov F 48.00 48.00
December 6, 2012 3:30PM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 3Q P (0.10) (0.10)
January 1, 1900 5:30PM UK BOE Announces rates % Ratio Dec 6 0.50 0.50
January 1, 1900 6:15PM Euro Zone ECB announces interest rates % Dec 6 0.75 0.75
December 7, 2012 3:00PM UK Industrial Production (YoY) % Change Oct (2.60) (0.60)
January 1, 1900 7:00PM US Change in Nonfarm payrolls Thousands Nov 171.00 90.00
January 1, 1900 7:00PM US Unnemployment rate % Nov 7.90 7.90
December 9, 2012 7:00AM China Consumer Price Index (YoY) % Change Nov 1.70 2.10
January 1, 1900 11:00AM China Industrial Production (YoY) % Change Nov 9.60 9.80
December 10, 2012 5:29PM China Exports YoY% % Change Nov 11.60 8.30
December 12, 2012 11:00AM India Industrial Production YoY % Change Oct (0.40) --
January 1, 1900 3:00PM UK Jobless claims change % Change Nov 10.10 --
January 1, 1900 11:00PM US FOMC rate decision % Dec 12 0.25 --
December 13, 2012 7:00PM US Producer Price Index (mom) % Change Nov (0.20) --
December 14, 2012 12:00PM India Monthly Wholesale Prices YoY% % Change Nov 7.45 --
January 1, 1900 3:30PM Euro Zone Euro-Zone CPI (YoY) % Nov 2.50 --
January 1, 1900 7:00PM US Consumer price index (mom) % Change Nov 0.10 --
January 1, 1900 7:45PM US Industrial Production % Nov (0.43) --
December 18, 2012 11:00AM India RBI Repo rate % Dec 18 8.00 --
January 1, 1900 11:00AM India RBI Cash Reserve ratio % Dec 18 4.25 --
January 1, 1900 3:00PM UK CPI (YoY) % Change Nov 2.70 --
Source: Bloomberg, Angel Research
December 03, 2012
Market Outlook
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Market OutlookDecember 03, 2012
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Macro watch
Exhibit 1 :Q uarterly G D P trends
Source: CSO, Ang el Research
Exhibit 2 :IIP trends
Source: M O SPI, Ang el Research
Exhibit 3 :M onthly WPI inflation trends
Source: M O SPI, Ang el Research
Exhibit 4 :M a nufacturing a nd services PM I
Source: Ma rket, Angel Research; N ote: Level above 50 indicates expansion
Exhibit 5 :Expo rts an d impo rts growth trends
Source: Bloomberg, Angel Research
Exhibit 6 :Key policy rates
Source: RBI, Angel Research
3. 5
5. 7
9. 0
7. 5
11.2
8. 5
7. 68 .2
9. 2
8. 0
6. 76. 1
5. 3 5. 5 5. 3
3. 0
4. 0
5. 0
6. 0
7. 0
8. 0
9. 0
10.0
11.0
12.0
4Q
FY09
1Q
FY10
2Q
FY10
3Q
FY10
4Q
FY10
1Q
FY11
2Q
FY11
3Q
FY11
4Q
FY11
1Q
FY12
2Q
FY12
3Q
FY12
4Q
FY12
1Q
FY13
2Q
FY13
(%)
(5.0)
6 .0
2 .7
1 .0
4 .3
(2.8) (1.3)
2 .5
(2.0)(0.2)
2 .3
(0.4)
(6.0)
(4.0)
(2.0)
-
2 .0
4 .0
6 .0
8 .0
O
ct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
M
ay-12
Jun-12
Jul-12
Aug-12
Sep-12
(%)
9. 5
7. 76. 9
7. 4 7. 7 7. 5 7. 6 7. 6 7. 58. 0 7. 8 7. 5
0. 0
1. 0
2. 0
3. 0
4. 0
5. 0
6. 0
7. 0
8. 0
9. 0
10.0
Nov
-11
Dec
-11
Jan
-12
Fe
b-
12
M
ar
-12
Apr
-12
M
ay
-12
Jun
-12
Ju
l-12
Aug
-12
Sep
-12
O
ct-12
(%)
48.0
50.0
52.0
54.0
56.0
58.0
60.0
O
ct-11
Nov
-11
Dec
-11
Jan
-12
Fe
b-1
2
M
ar
-12
Apr
-12
M
ay
-12
Jun
-12
Ju
l-12
Aug
-12
Sep
-12
O
ct-12
M fg. PM I Services PM I
(30.0)
(15.0)
0 .0
15.0
30.0
45.0
Nov
-11
Dec
-11
Jan
-12
Fe
b-1
2
M
ar-
12
Apr-
12
M
ay
-12
Jun
-12
Ju
l-12
Aug
-12
Sep
-12
O
ct-12
Exp orts yoy g ro wth Im ports yo y growth( %)
8.00
7.00
4.25
4.00
5.00
6.00
7.00
8.00
9.00
Nov
-11
Dec
-11
Jan
-12
Fe
b-
12
M
ar-
12
Apr-
12
M
ay
-12
Jun
-12
Ju
l-12
Aug
-12
Sep
-12
O
ct-12
Nov
-12
Repo rate Reverse Repo rate C RR(%)
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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 ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
Agri / Agri Chemical
Rallis Neutral 158 - 3,080 1,466 1,686 14.8 14.8 7.0 8.1 22.6 19.6 4.8 4.1 22.6 22.5 2.2 1.9
United Phosphorus Buy 114 170 5,269 8,421 9,263 16.5 16.5 15.0 17.0 7.6 6.7 1.1 1.0 15.6 15.5 0.8 0.7
Auto & Auto Ancillary
Amara Raja Batteries Neutral 255 - 4,351 2,911 3,321 16.2 16.2 17.3 19.8 14.7 12.8 4.0 3.2 31.1 27.6 1.4 1.2
Apollo Tyres Buy 84 96 4,214 13,713 15,341 11.2 11.2 12.5 14.8 6.7 5.6 1.2 1.0 20.2 19.9 0.5 0.4
Ashok Leyland Accumulate 28 31 7,437 14,490 16,606 9.5 9.6 2.2 2.9 12.6 9.8 2.3 2.1 13.6 16.1 0.6 0.5
Automotive Axle# Neutral 356 - 538 1,103 1,240 11.0 11.3 39.1 45.0 9.1 7.9 1.7 1.6 19.5 22.8 0.5 0.4Bajaj Auto Reduce 1,953 1,839 56,500 21,121 23,642 18.4 18.5 108.7 1 22.6 18.0 15.9 7.4 6.0 46.2 41.6 2.3 2.0
Bharat Forge Buy 261 324 6,079 6,754 7,565 15.5 15.7 18.8 23.2 13.9 11.3 2.4 2.1 18.5 19.7 1.1 0.9
Bosch India* Neutral 9,200 - 28,888 8,776 10,276 16.6 18.0 331.9 417.7 27.7 22.0 5.2 4.3 18.7 19.5 3.0 2.5
CEAT Buy 103 163 353 4,989 5,634 8.2 8.5 27.1 40.8 3.8 2.5 0.5 0.4 13.2 17.2 0.3 0.2
Exide Industries Accumulate 144 155 12,210 6,229 7,200 14.8 15.8 7.2 9.0 20.0 16.1 3.5 3.0 18.5 19.9 1.7 1.4
FAG Bearings* Neutral 1,682 - 2,795 1,489 1,750 16.5 17.5 103.3 126.9 16.3 13.3 3.2 2.6 21.3 21.6 1.6 1.3
Hero Motocorp Accumulate 1,823 1,956 36,398 24,743 27,996 14.8 15.2 118.2 130.4 15.4 14.0 6.6 5.3 48.3 41.9 1.2 1.0
JK Tyre Buy 114 165 469 7,517 8,329 6.6 6.6 37.2 41.3 3.1 2.8 0.5 0.5 18.8 17.8 0.3 0.3
Mahindra and Mahindra Accumulate 933 986 57,300 40,035 46,272 11.5 11.6 54.7 62.8 17.1 14.9 3.8 3.2 24.3 23.4 1.2 1.0
Maruti Neutral 1,487 - 42,974 42,019 50,246 7.3 8.6 66.1 94.4 22.5 15.8 2.6 2.2 11.9 15.1 0.9 0.7
Motherson Sumi Neutral 176 - 10,341 24,285 27,317 6.7 7.2 8.1 10.6 21.9 16.6 4.6 3.7 22.9 24.7 0.6 0.5
Subros Accumulate 32 35 190 1,286 1,479 9.4 9.7 2.6 5.1 12.2 6.3 0.7 0.6 5.6 10.3 0.4 0.4
Tata Motors Accumulate 278 319 74,157 192,330 219,770 12.8 13.1 37.0 44.5 7.5 6.3 2.1 1.6 31.2 28.9 0.4 0.4
TVS Motor Buy 39 45 1,831 7,466 8,290 6.2 6.3 4.8 5.6 8.1 6.9 1.4 1.2 18.2 18.7 0.2 0.2
Capital Goods
ABB* Sell 704 573 14,913 7,796 9,907 4.8 7.8 9.2 22.0 76.5 32.0 5.6 4.9 7.5 16.4 1.9 1.5BGR Energy Neutral 268 - 1,931 3,605 4,542 11.8 10.7 25.1 27.9 10.7 9.6 1.6 1.4 31.1 27.1 1.0 0.9
BHEL Neutral 222 - 54,435 47,801 43,757 18.5 18.0 24.6 21.8 9.0 10.2 2.7 2.3 33.5 24.5 1.0 1.1
Blue Star Buy 189 242 1,701 2,763 2,948 3.1 5.6 2.6 8.6 71.9 22.1 4.2 3.7 5.9 17.6 0.7 0.6
Crompton Greaves Buy 113 145 7,252 12,370 14,277 5.2 7.3 4.0 7.8 28.3 14.5 1.9 1.8 6.9 12.6 0.6 0.6
Jyoti Structures Accumulate 46 53 380 2,794 3,048 10.6 10.6 9.2 11.7 5.0 4.0 0.5 0.5 10.9 12.5 0.4 0.4
KEC International Buy 62 73 1,606 6,858 7,431 7.1 7.5 8.3 9.8 7.5 6.4 1.3 1.1 25.1 24.0 0.4 0.3
LMW Neutral 2,071 - 2,333 2,369 2,727 11.7 11.7 143.4 166.0 14.4 12.5 2.4 2.2 17.4 18.4 0.5 0.4
Thermax Neutral 591 - 7,040 5,514 5,813 9.3 10.2 28.1 31.2 21.0 18.9 3.8 3.3 19.2 18.5 1.1 1.0
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Stock Watch
December 03, 2012
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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 ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
Financials
HDFC Neutral 821 - 126,531 7,336 8,802 3.5 3.5 31.5 37.8 26.1 21.7 5.2 4.6 34.8 32.1 - -
HDFC Bank Neutral 699 - 165,156 21,696 26,811 4.4 4.5 28.7 36.0 24.4 19.4 4.7 3.9 20.7 22.0 - -
ICICI Bank Buy 1,082 1,270 124,359 22,271 26,690 3.0 3.0 69.2 83.1 15.6 13.0 1.9 1.7 14.2 15.7 - -
IDBI Bank Neutral 104 - 13,353 7,684 9,264 1.8 2.1 15.6 22.0 6.7 4.8 0.7 0.7 10.9 13.9 - -
Indian Bank Accumulate 179 202 7,708 5,874 6,551 3.2 3.2 40.6 41.8 4.4 4.3 0.7 0.6 18.1 16.4 - -
IOB Neutral 77 - 6,129 7,050 8,313 2.3 2.5 12.3 19.9 6.3 3.9 0.6 0.5 8.8 13.1 - -
J & K Bank Neutral 1,381 - 6,697 2,762 2,885 3.6 3.6 226.7 193.0 6.1 7.2 1.4 1.2 24.4 17.7 - -LIC Housing Finance Buy 258 298 13,015 1,799 2,255 2.3 2.4 20.3 27.3 12.7 9.5 2.0 1.7 16.9 19.7 - -
Oriental Bank Accumulate 320 347 9,349 6,277 7,090 2.6 2.7 60.5 65.1 5.3 4.9 0.8 0.7 15.0 14.4 - -
Punjab Natl.Bank Accumulate 766 843 25,995 19,652 22,601 3.2 3.3 135.0 164.3 5.7 4.7 1.0 0.8 16.3 17.3 - -
South Ind.Bank Neutral 24 - 3,167 1,556 1,750 2.8 2.7 3.5 3.9 6.8 6.2 1.1 1.0 19.1 16.9 - -
St Bk of India Accumulate 2,132 2,437 143,070 61,883 71,546 3.4 3.4 227.2 257.5 9.4 8.3 1.6 1.4 17.8 17.7 - -
Syndicate Bank Accumulate 123 131 7,392 6,756 7,783 3.0 3.0 26.3 27.1 4.7 4.5 0.8 0.7 18.3 16.6 - -
UCO Bank Neutral 73 - 4,879 5,234 6,097 2.3 2.4 11.8 14.7 6.2 5.0 1.0 0.8 11.9 13.4 - -
Union Bank Accumulate 234 250 12,880 9,912 11,536 2.8 2.9 40.4 46.7 5.8 5.0 1.0 0.8 16.1 16.4 - -
United Bank Accumulate 68 77 2,437 3,500 3,912 2.6 2.8 15.8 21.2 4.3 3.2 0.6 0.5 13.1 15.7 - -
Vijaya Bank Neutral 56 - 2,765 2,354 2,754 2.0 2.2 7.4 10.2 7.6 5.5 0.8 0.7 9.3 11.9 - -
Yes Bank Accumulate 443 492 15,801 3,270 4,240 2.8 3.0 34.5 42.2 12.8 10.5 2.7 2.3 23.5 23.5 - -
FMCG
Asian Paints Neutral 4,318 - 41,415 11,198 13,184 16.2 16.2 123.7 146.4 34.9 29.5 11.9 9.3 38.1 35.4 3.6 3.1
Britannia Buy 492 584 5,882 5,627 6,581 4.9 5.7 18.3 24.7 26.9 20.0 9.8 7.5 39.1 42.7 1.0 0.8
Colgate Neutral 1,455 - 19,784 3,146 3,573 20.6 21.4 36.4 42.5 40.0 34.2 37.0 31.0 102.0 98.5 6.1 5.4
Dabur India Neutral 126 - 21,917 6,124 7,101 17.0 16.8 4.5 5.2 28.1 24.0 11.6 9.2 43.2 41.5 3.6 3.0
GlaxoSmith Con* Neutral 3,697 - 15,548 3,124 3,663 17.1 17.6 104.5 123.8 35.4 29.9 11.0 8.8 34.4 32.8 4.6 3.9
Godrej Consumer Neutral 734 - 24,987 6,355 7,548 18.4 18.6 22.8 27.6 32.2 26.6 7.4 6.1 26.4 26.1 4.1 3.4
HUL Neutral 548 - 118,421 25,350 28,974 13.3 13.5 14.7 17.1 37.2 32.1 29.4 20.8 84.5 75.8 4.5 3.9
ITC Neutral 298 - 234,479 29,409 34,060 35.7 36.1 9.3 10.9 32.0 27.3 10.6 8.8 35.8 35.3 7.7 6.6
Marico Neutral 219 - 14,132 4,840 5,643 13.1 13.1 6.2 7.8 35.5 28.2 6.8 5.5 25.4 22.6 3.0 2.5
Nestle* Neutral 4,756 - 45,857 8,529 10,079 20.8 21.1 113.1 137.8 42.1 34.5 25.2 17.7 70.5 60.2 5.4 4.5
Tata Global Neutral 163 - 10,055 7,207 7,927 9.7 10.0 6.6 7.8 24.6 20.8 2.5 2.4 8.6 9.5 1.3 1.2
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December 03, 2012
7/30/2019 Market Outlook 031212
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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 ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
IT
HCL Tech^ Neutral 641 - 44,513 24,214 26,772 19.5 18.1 44.0 48.0 14.6 13.4 3.5 2.9 24.0 22.0 1.8 1.5
Hexaware* Buy 109 135 3,229 1,944 2,159 21.8 21.1 11.4 12.2 9.6 8.9 2.5 2.1 26.4 24.1 1.4 1.2
Infosys Accumulate 2,445 2,573 140,391 39,174 41,580 29.5 30.4 159.2 171.6 15.4 14.3 3.7 3.3 24.1 23.1 3.0 2.8
Infotech Enterprises Accumulate 189 202 2,103 1,886 2,032 17.9 17.3 18.7 20.2 10.1 9.4 1.5 1.3 14.9 14.0 0.8 0.6
KPIT Cummins Neutral 126 - 2,256 2,195 2,317 15.5 15.0 10.7 12.1 11.8 10.5 2.5 2.0 21.0 19.8 1.0 0.9
Mahindra Satyam Accumulate 101 115 11,940 7,597 8,141 20.0 18.8 9.7 10.4 10.5 9.7 2.9 2.2 27.5 22.9 1.2 1.0
Mindtree Accumulate 693 747 2,849 2,324 2,437 20.0 17.7 73.3 74.7 9.5 9.3 2.3 1.8 24.1 19.7 1.0 0.8Mphasis& Neutral 386 - 8,109 5,700 5,993 18.0 16.9 37.0 37.3 10.4 10.4 1.5 1.3 14.3 12.6 0.9 0.8
NIIT Accumulate 32 36 527 1,048 1,161 9.3 10.9 4.2 6.2 7.6 5.1 0.8 0.7 10.5 14.1 0.3 0.2
Persistent Neutral 476 - 1,905 1,261 1,352 26.4 24.7 48.2 54.0 9.9 8.8 1.9 1.6 19.0 17.9 1.2 1.0
TCS Accumulate 1,298 1,410 254,057 61,053 67,313 28.7 29.1 69.7 76.2 18.6 17.0 6.1 5.0 32.6 29.1 4.0 3.5
Tech Mahindra Buy 880 1,070 11,233 6,603 7,150 19.8 18.4 92.9 102.0 9.5 8.6 2.2 1.8 23.7 21.0 1.8 1.6
Wipro Accumulate 385 421 94,874 43,219 47,241 20.0 20.0 26.1 28.1 14.7 13.7 2.8 2.5 19.3 17.9 1.9 1.6
Media
D B Corp Buy 219 259 4,015 1,581 1,784 23.3 25.0 11.6 14.4 18.9 15.2 3.7 3.2 21.0 22.3 2.4 2.1
HT Media Accumulate 102 113 2,394 2,111 2,272 15.0 15.2 7.4 8.3 13.8 12.3 1.5 1.3 11.3 11.4 0.8 0.7
Jagran Prakashan Buy 101 117 3,194 1,503 1,681 23.1 23.1 6.4 7.3 15.8 13.9 3.9 3.5 25.8 26.5 2.3 2.0
PVR Neutral 255 - 738 682 786 17.3 16.9 17.6 19.7 14.5 13.0 1.7 1.5 14.9 14.5 1.4 1.2
Sun TV Network Neutral 407 - 16,025 1,942 2,237 77.2 75.5 17.6 19.1 23.1 21.3 5.8 5.2 25.8 25.2 7.8 6.7
Metals & Mining
Bhushan Steel Neutral 459 - 9,748 11,307 14,287 29.5 29.1 45.1 51.0 10.2 9.0 1.2 1.0 12.2 12.2 2.9 2.3
Coal India Neutral 369 - 233,011 66,666 70,292 25.7 27.3 24.2 26.6 15.3 13.9 4.5 3.6 33.1 29.1 2.5 2.3
Electrosteel Castings Accumulate 26 29 901 1,984 2,074 10.6 11.6 0.8 2.0 31.2 12.9 0.5 0.2 1.7 4.1 0.7 0.6Hind. Zinc Accumulate 138 145 58,288 12,446 13,538 52.3 52.9 15.0 16.4 9.2 8.4 1.8 1.5 21.4 19.7 2.8 2.2
Hindalco Neutral 113 - 21,702 79,148 89,258 9.4 9.0 15.0 15.6 7.6 7.3 0.6 0.6 8.8 8.4 0.7 0.6
JSW Steel Neutral 732 - 16,323 39,586 41,459 17.6 17.0 78.7 90.1 9.3 8.1 0.9 0.8 10.2 10.7 0.8 0.8
MOIL Accumulate 242 261 4,071 941 1,019 47.3 48.3 25.8 28.1 9.4 8.6 1.5 1.3 16.7 16.2 2.0 1.6
Monnet Ispat Buy 257 344 1,651 2,501 3,264 22.2 24.6 41.8 55.2 6.1 4.6 0.6 0.6 11.3 13.4 1.7 1.2
Nalco Neutral 45 - 11,572 6,898 7,841 9.9 14.7 2.0 3.2 22.7 14.1 1.0 0.9 4.3 6.8 1.2 1.1
NMDC Buy 160 198 63,297 11,209 12,525 78.4 78.3 18.5 20.6 8.6 7.8 2.1 1.7 27.0 24.6 3.7 3.1
SAIL Neutral 79 - 32,652 47,252 60,351 14.2 14.8 9.6 11.7 8.3 6.7 0.8 0.7 9.4 10.6 1.1 0.9
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December 03, 2012
7/30/2019 Market Outlook 031212
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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 ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
Metals & Mining
Sesa Goa Neutral 179 - 15,522 4,551 6,640 32.8 34.4 33.7 39.3 5.3 4.6 0.9 0.8 18.3 18.3 4.1 2.8
Sterlite Inds Neutral 105 - 35,320 43,185 45,442 23.3 23.7 16.8 17.9 6.3 5.9 0.7 0.6 11.6 11.2 0.8 0.7
Tata Steel Buy 377 463 36,610 145,725 154,108 8.3 9.5 22.0 44.5 17.1 8.5 0.8 0.8 4.9 9.3 0.5 0.5
Sarda Accumulate 138 153 495 1,442 1,494 17.6 17.3 27.2 28.7 5.1 4.8 0.6 0.5 11.5 11.0 0.7 0.7
Prakash Industries Buy 45 73 611 2,694 2,906 14.6 16.6 16.4 20.8 2.8 2.2 0.3 0.2 11.4 12.8 0.4 0.3
Godawari Power andIspat
Buy 117 143 372 2,342 2,470 13.7 15.3 27.7 33.8 4.2 3.5 0.4 0.4 10.9 11.4 0.6 0.6
Oil & Gas
Cairn India Buy 329 382 62,805 17,567 17,643 76.2 72.3 61.1 56.8 5.4 5.8 1.1 0.9 22.0 17.5 2.7 2.3
GAIL Neutral 344 - 43,686 46,652 54,142 15.7 15.7 34.0 35.3 10.1 9.8 1.8 1.5 18.5 16.8 0.7 0.5
ONGC Buy 254 312 217,010 147,139 154,821 33.9 33.7 30.7 32.3 8.3 7.9 1.4 1.3 18.3 17.2 1.2 1.1
Reliance Industries Neutral 797 - 260,818 362,700 380,031 7.9 8.0 60.0 63.3 13.3 12.6 1.3 1.2 11.1 10.6 0.7 0.7
Gujarat Gas* Neutral 300 - 3,845 3,128 3,707 13.2 11.7 22.8 23.5 13.2 12.7 4.0 3.5 33.2 29.2 1.1 0.9
Indraprastha Gas Neutral 262 - 3,665 3,213 3,643 23.3 23.5 24.3 25.7 10.8 10.2 2.5 2.1 25.0 22.1 1.2 1.1
Petronet LNG Buy 159 183 11,951 30,077 33,570 6.6 6.3 15.1 15.3 10.5 10.4 2.7 2.2 28.4 23.1 0.4 0.4
Gujarat State PetronetLtd.
Neutral 72 - 4,071 1,079 1,034 91.8 91.9 8.8 8.4 8.3 8.6 1.4 1.2 17.9 15.0 3.5 3.6
Pharmaceuticals
Alembic Pharma Buy 63 91 1,196 1,624 1,855 14.2 15.6 6.6 9.1 9.6 7.0 2.4 1.9 27.9 29.9 0.9 0.7
Aurobindo Pharma Neutral 184 - 5,362 5,243 5,767 14.6 14.6 11.8 12.6 15.6 14.6 1.9 1.7 17.9 16.4 1.5 1.3
Aventis* Neutral 2,309 - 5,318 1,482 1,682 15.5 15.5 95.1 104.4 24.3 22.1 4.3 3.4 18.6 17.0 3.4 2.9
Cadila Healthcare Accumulate 825 926 16,892 6,148 7,386 18.6 19.6 32.7 44.8 25.2 18.4 5.5 4.4 23.7 26.6 3.1 2.5
Cipla Neutral 405 - 32,530 8,151 9,130 25.0 24.0 19.5 20.9 20.8 19.4 3.6 3.1 18.8 17.2 3.8 3.3
Dr Reddy's Neutral 1,809 - 30,707 10,696 11,662 20.7 21.0 83.7 92.9 21.6 19.5 4.4 3.7 22.4 20.8 3.2 2.8
Dishman Pharma Buy 116 145 932 1,280 1,536 20.2 20.2 10.4 14.5 11.1 8.0 0.9 0.8 8.7 11.0 1.4 1.2
GSK Pharma* Neutral 2,052 - 17,380 2,651 2,993 31.7 31.2 76.0 82.4 27.0 24.9 7.8 7.0 20.1 26.3 5.8 5.0
Indoco Remedies Buy 68 89 626 685 837 15.2 15.2 7.4 8.9 9.2 7.6 1.4 1.2 16.4 17.0 1.1 0.9
Ipca labs Accumulate 453 485 5,718 2,850 3,474 21.0 21.0 29.9 37.3 15.2 12.2 3.6 2.9 26.7 26.4 2.2 1.8
Lupin Accumulate 579 652 25,890 8,426 10,082 19.7 20.0 26.3 31.3 22.0 18.5 5.1 4.1 26.0 24.7 3.2 2.6
Ranbaxy* Neutral 512 - 21,637 12,046 11,980 18.0 15.8 31.3 29.8 16.4 17.2 5.6 4.5 39.1 28.9 1.8 1.8
Sun Pharma Neutral 708 - 73,237 9,752 12,134 41.6 41.6 26.0 28.2 27.2 25.1 5.1 4.4 20.3 18.8 6.8 5.3
Power
CESC Neutral 307 - 3,832 5,218 5,644 24.2 23.8 44.6 47.6 6.9 6.5 0.7 0.7 11.0 10.6 1.5 1.5
GIPCL Accumulate 68 78 1,029 1,523 1,568 30.3 30.3 5.4 11.5 12.6 5.9 0.7 0.6 5.6 11.3 1.1 1.0
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December 03, 2012
7/30/2019 Market Outlook 031212
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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 ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
Power
NTPC Neutral 161 - 132,422 74,111 85,789 22.7 23.1 12.1 13.7 13.3 11.7 1.6 1.5 12.6 13.2 2.4 2.2
Real Estate
Anant Raj Sell 97 78 2,873 657 875 52.0 56.1 8.4 12.7 11.6 7.7 0.7 0.7 6.3 8.9 5.6 4.2
DLF Neutral 209 - 35,433 9,878 12,033 44.7 46.1 9.6 13.4 21.8 15.6 1.4 1.3 6.4 8.7 6.1 5.0
HDIL Neutral 113 - 4,722 2,441 3,344 55.1 48.2 22.7 26.6 5.0 4.2 0.4 0.4 8.8 9.4 3.8 2.8
MLIFE Reduce 420 396 1,714 813 901 26.2 26.6 32.0 37.1 13.1 11.3 1.4 1.2 10.4 11.0 2.5 2.2
TelecomBharti Airtel Neutral 330 - 125,375 81,984 90,718 32.1 33.8 10.9 16.9 30.3 19.6 2.3 2.1 7.6 10.6 2.2 1.8
Idea Cellular Neutral 99 - 32,931 22,234 24,161 26.9 27.7 3.3 4.9 30.1 20.2 2.3 2.1 7.7 10.3 1.9 1.7
Rcom Neutral 70 - 14,345 21,090 22,308 31.8 29.9 3.0 3.8 22.9 18.3 0.4 0.4 1.7 2.1 2.3 2.1
zOthers
Abbott India Accumulate 1,468 1,590 3,118 1,629 1,886 11.8 13.3 60.8 79.5 24.2 18.5 5.0 4.1 22.0 24.4 1.7 1.4
Bajaj Electricals Accumulate 206 217 2,052 3,497 3,968 6.6 7.6 9.8 15.5 21.0 13.3 2.7 2.3 12.7 17.4 0.6 0.5
Cera Sanitaryware Neutral 405 - 513 427 528 15.7 14.6 30.0 34.0 13.5 11.9 3.0 2.4 24.6 22.5 1.3 1.1
Cravatex Buy 417 545 108 272 308 7.2 7.3 37.5 45.4 11.1 9.2 2.6 2.1 23.7 22.7 0.5 0.4
CRISIL Neutral 959 - 6,739 982 1,136 34.3 34.3 34.3 40.0 27.9 24.0 12.7 10.1 50.9 46.9 6.4 5.4
Finolex Cables Accumulate 53 61 808 2,304 2,552 9.9 9.1 8.2 10.1 6.5 5.2 0.9 0.8 13.7 14.7 0.3 0.3
Force Motors Accumulate 475 537 619 2,318 2,700 5.0 5.7 45.0 67.0 10.6 7.1 0.5 0.5 5.0 7.0 0.2 0.2
Goodyear India Buy 312 360 719 1,494 1,607 6.4 7.8 23.9 33.0 13.0 9.5 2.1 1.8 16.5 20.1 0.3 0.2
Greenply Industries Neutral 295 - 713 1,925 2,235 10.6 10.9 29.6 44.1 10.0 6.7 1.6 1.3 16.8 21.0 0.7 0.5
Hitachi Buy 123 146 283 873 989 4.4 6.5 6.4 12.2 19.4 10.1 1.6 1.4 8.3 14.4 0.4 0.3
Honeywell Automation* Buy 2,382 2,842 2,106 1,745 1,993 4.0 5.3 59.5 90.4 40.0 26.4 3.0 2.6 8.1 11.3 1.1 0.9
Styrolution ABS India* Accumulate 676 744 1,189 1,059 1,116 8.5 9.5 36.0 42.0 18.8 16.1 2.7 2.4 15.4 16.0 1.2 1.1ITD Cementation Neutral 253 - 291 1,323 1,455 12.4 12.4 23.2 27.7 10.9 9.1 0.7 0.7 6.8 7.6 0.7 0.6
Jyothy Laboratories Neutral 174 - 2,800 1,228 1,443 9.0 10.9 3.9 6.4 44.7 27.2 4.4 4.1 10.1 15.6 2.8 2.3
MCX Reduce 1,542 1,440 7,863 553 624 65.3 66.3 62.5 72.0 24.7 21.4 6.8 5.9 27.5 27.4 11.2 9.5
MRF Buy 10,526 12,884 4,464 11,804 12,727 10.4 10.5 1,289.9 1,431.3 8.2 7.4 1.6 1.3 21.3 19.4 0.5 0.5
Page Industries Accumulate 3,335 3,602 3,720 836 1,023 20.2 20.6 105.6 133.4 31.6 25.0 16.1 11.3 59.3 53.2 4.5 3.7
Relaxo Footwears Buy 806 933 968 1,019 1,208 11.0 12.5 47.0 66.7 17.2 12.1 4.3 3.2 28.2 30.1 1.1 0.9
Sintex Industries Buy 62 79 1,863 4,751 5,189 16.3 16.6 13.6 15.8 4.6 3.9 0.6 0.5 12.9 13.2 0.8 0.6
Siyaram Silk Mills Buy 298 366 279 1,043 1,149 12.3 12.9 65.7 73.3 4.5 4.1 0.9 0.7 21.0 19.6 0.5 0.5
S. Kumars Nationwide Neutral 14 - 415 7,134 7,985 19.7 19.4 12.2 14.1 1.1 1.0 0.1 0.1 11.3 11.5 0.6 0.6
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December 03, 2012
7/30/2019 Market Outlook 031212
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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 ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
zOthers
SpiceJet Neutral 43 - 2,068 5,720 6,599 5.3 6.8 3.6 5.4 11.8 8.0 17.1 5.4 - - 0.5 0.4
TAJ GVK Buy 72 108 451 300 319 35.8 36.2 7.9 9.1 9.1 7.9 1.2 1.1 13.9 14.4 1.8 1.6
Tata Sponge Iron Buy 307 384 472 750 803 18.6 18.4 65.4 69.1 4.7 4.4 0.7 0.6 16.5 15.3 0.2 0.1
TVS Srichakra Buy 252 335 193 1,476 1,643 7.0 8.2 32.6 55.9 7.7 4.5 1.2 1.0 16.8 24.8 0.3 0.3
United Spirits Neutral 2,041 - 26,695 10,289 11,421 12.8 12.8 26.0 45.3 78.5 45.1 3.6 3.3 5.8 7.6 3.0 2.7
Vesuvius India Neutral 348 - 707 560 611 16.1 17.0 24.7 28.8 14.1 12.1 2.1 1.9 15.8 16.2 1.1 1.0
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on November 30, 2012
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Market OutlookDecember 03, 2012
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