market outlook 12-09-2013

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Market OutlookSeptember 12, 2013

Dealers Diary

Indian markets are expected to open flat to positive tracking positive opening

trades in the SGX Nifty and mixed opening across the Asian indices.

US stocks experienced a choppy trading session on Wednesday and eventually

ended the day on a mixed note. Ongoing uncertainty about the situation in Syria

kept market participants on the sidelines following President Barack Obama's

address to the nation last night. On the economic front, the US Commerce

Department released a report showing that the wholesale inventories rose by less

than expected (grew by 0.1% against expectations of 0.3%) in July.

Meanwhile, domestic markets ended largely unchanged on Wednesday as

investors indulged in profit booking following a four day rally on the back of the

new found strength in INR against the USD. Going ahead, trading in global

markets on Thursday may be impacted by the release of the US Labor

Department's reports on weekly jobless claims and import and export prices.

Markets Today

The trend deciding level for the day is 19,944 / 5,890 levels. If NIFTY trades above

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

up to 20,109 20,221 / 5,947 5,982 levels. However, if NIFTY trades below

19,944 / 5,890 levels for the first half-an-hour of trade then it may correct up to

19,832 19,666 / 5,856 5,798 levels.

Indices S2 S1 PIVOT R1 R2SENSEX 19,666 19,832 19,944 20,109 20,221

NIFTY 5,798 5,856 5,890 5,947 5,982

News Analysis

Odds of RBI rolling back some of the liquidity measures appears favorable TTMT global sales remain weak; JLR sustained its strong growth in August UltraTech to buy Jaiprakashs Gujarat cement unit for `3,800cr

Refer detailed news analysis on the following page

Net Inflows (September 10, 2013)

` cr Purch Sales Net MTD YTDFII 5,893 3,188 2,705 4,967 64,164

MFs 485 773 (288) (837) (13,833)

FII Derivatives (September 11, 2013)` cr Purch Sales Net Open InterestIndex Futures 2,725 2,998 (273) 13,308

Stock Futures 2,176 2,490 (315) 28,874

Gainers / Losers

Gainers LosersCompany Price (`) chg (%) Company Price (`) chg (%)Financial Tech. 184 27.3 Power Grid Corp. 99 (3.1)

IRB Infra 78 14.2 Bajaj Holdings 801 (2.7)

Bank of India 167 10.5 Cairn India 320 (2.7)

UCO Bank 59 10.3 Tata Motors 341 (2.5)

GMR Infra 18 9.5 J&K Bank 1,183 (2.0)

Domestic Indices Chg (%) (Pts) (Close)BSE Sensex 0.0 0 19,997

Nifty 0.3 16 5,913

MID CAP 1.3 74 5,599

SMALL CAP 1.1 60 5,463

BSE HC 1.1 106 9,372

BSE PSU 1.4 78 5,561

BANKEX 1.8 208 11,793

AUTO 0.1 9 11,049

METAL 3.3 278 8,633

OIL & GAS (0.2) (19) 8,678

BSE IT (0.2) (19) 8,012

Global Indices Chg (%) (Pts) (Close)Dow Jones 0.9 136 15,327NASDAQ (0.1) (4) 3,725

FTSE 0.1 4 6,588

Nikkei 0.0 2 14,425

Hang Sang (0.2) (40) 22,937

Straits Times (0.5) (16) 3,108

Shanghai Com 0.1 3 2,241

Indian ADR Chg (%) (Pts) (Close)INFY (1.1) (0.5) $48.9

WIT 3.7 0.4 $10.2IBN (1.6) (0.5) $31.2

HDB 0.8 0.3 $32.2

Advances / Declines BSE NSEAdvances 1,407 861

Declines 948 478

Unchanged 156 90

Volumes (` cr)BSE 2,402

NSE 13,817

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Odds of RBI rolling back some of the liquidity tightening

measures appears favorable; could likely result in sharp rally in

rate-sensitive names (incl. beaten down PSU banks)

Recent economic data release by the Commerce Ministry shows that Indian exportshave grown at double digits for second straight month in August 2013, while

imports have remained largely stable. The outlook for export growth has improved

now on back of increased expectations of economic recovery in advanced

economies like U.S, Japan and Eurozone to some extent, along with steep INR

depreciation and has evidently supported the recent appreciation in INR (which we

believe is more in sync with its fundamentals now than in recent past). Hence, we

are of the view that the odds of RBI rolling back some of the stringent liquidity

tightening measures have turned favorable, which makes an opportune case for

sharp near term rally in rate-sensitive names (incl. beaten down PSU banks).

We are cognizant of the fact that medium term sectoral challenges (like weakeninggrowth and deteriorating asset quality) requires many other things to fall in place

(exports being the one) and would ensure that the earnings pressure for the

banking sector prevail. Hence, it would be too early to revise our medium term

cautious call on the sector, however, as the odds of RBI rolling back some of the

stringent liquidity tightening measures appears favorable now, we wouldrecommend investors to built in fresh longs into the beaten down PSU banks, whilemaintaining our Buy rating on HDFC, ICICI and Axis Bank.

TTMT global sales remain weak; JLR sustained its strong growth

in August 2013

Tata Motors' (TTMT) global sales continued its weak trend in August 2013,

declining by 16.2% yoy (7% mom) to 81,457 units, led by the poor performance in

the domestic passenger and commercial vehicle segments. While, global

commercial vehicle sales posted a decline of 24.2% yoy; global passenger vehicle

volumes declined by 7.8% yoy led by the 45.5% yoy decline in the domestic

passenger vehicle volumes.

Jaguar and Land Rover (JLR) however, sustained its strong momentum witnessing a

growth of 28.4% yoy to 30,895 units. The growth was led by the strong

performance of the Jaguar and Land Rover models on the back of the success ofthe new launches and easing of capacity constraints. Jaguar continued its

impressive run, posting a growth of 76.4% yoy to 5,222 units driven by the

incremental volumes from the F-type and growth in the XF model led by the

introduction of the Sportbrake, AWD and smaller engine variants. Land Rover sales

too recorded a robust growth of 21.7% yoy to 25,673 units on the back of the

dispatches of the new Range Rover Sport.

Going ahead, we expect headwinds in the standalone business to continue in

FY2014 due to weak macro-economic environment which is expected to continue

impacting domestic volumes. However, we expect JLR to sustain its strong

performance driven by continued momentum in the global luxury vehicle marketand aided further by the strong product launch pipeline and the success of the

model launched in 4QFY2013. We expect JLR volumes to grow at ~13% CAGR

during FY2013-15E and PAT to grow at ~15% CAGR during the same period.

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While we retain our positive view on Tata Motors; post the sharp ~25% up movein the stock price over the last one month, we recommend a Neutral rating on thestock.

UltraTech to buy Jaiprakashs Gujarat cement unit for`3,800cr

Jaypee group has reached an agreement to sell its 4.8mn ton Gujarat cement

plant (a unit of Jaypee Cement Corporation [JCCCL] a wholly owned subsidiary of

Jaiprakash Associate) to Ultratech Cement. The Gujarat cement project consists of

an integrated cement plant at Sewagram and a 2.4mn ton cement grinding unit at

Wanakbori. The enterprise value of the transaction is `3,800cr excluding actual

net working capital. As per the agreement, UltraTech will take over the debt of

`3,650cr of Jaypee's Gujarat unit and transfer remaining `150cr worth of shares

once the transaction is completed. As per the Management, the transaction is

expected to be completed within 7-9months subject to approval of shareholders

and creditors, sanction of the Scheme of Arrangement by the High Courts,

approval of the Competition Commission of India besides other statutory

approvals. The Management has guided to reduce its consolidated debt by

~`15,000cr in FY2014 through monetization of land parcel, cement, thermal and

hydro assets. Going forward, we believe deleveraging the balance sheet through

monetization of assets would help reduce the huge debt which continues to remain

an overhang on the stock. Hence we believe closure of such a deal would be

positive for the company. However, due to recent increase in the stock price wemaintain our Neutral rating on the stock.

Economic and Political News

CCEA may consider 10% export duty on surplus cotton today Cabinet may consider semiconductor units proposal today Govt. will be able to contain CAD at 3.8% of GDP: Montek Singh AhluwaliaCorporate News

Power ministry seeks `24,239cr subsidy for stranded gas projects KEC International gets orders worth `1,004cr Sadbhav Engineering gets `457cr order for two water projects IIFCL seeks SEBI nod to mop up `8,171cr via tax free bonds

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

September 12, 2013 6:00PM US Initial Jobless claims Thousands Sep 7 323.00 330.00

5:30PM India Industrial Production YoY % Change Jul (2.20) (0.50)

September 13, 2013 6:00PM US Producer Price Index (mom) % Change Aug -- 0.20

September 16, 2013 12:00PM India Monthly Wholesale Prices YoY% % Change Aug 5.79 5.65

2:30PM Euro Zone Euro-Zone CPI (YoY) % Aug F 1.30 --

6:45PM US Industrial Production % Aug 0.04 0.35

September 17, 2013 2:00PM UK CPI (YoY) % Change Aug 2.80 --

6:00PM US Consumer price index (mom) % Change Aug 0.20 0.20

September 18, 2013 6:00PM US Housing Starts Thousands Aug 896.00 920.00

6:00PM US Building permits Thousands Aug 954.00 950.00

11:30PM US FOMC rate decision % Sep 18 0.25 --

September 19, 2013 7:30PM US Existing home sales Million Aug 5.39 5.26

September 20, 2013 11:00AM India RBI Repo rate % Sep 20 7.25 --

11:00AM India RBI Cash Reserve ratio % Sep 20 4.00 --

11:00AM India RBI Reverse Repo rate % Sep 20 --

7:30PM Euro Zone Euro-Zone Consumer Confidence Value Sep A (15.60) --

September 23, 2013 1:00PM Germany PMI Services Value Sep A 52.80 --

1:00PM Germany PMI Manufacturing Value Sep A 51.80 --

September 24, 2013 7:30PM US Consumer Confidence S.A./ 1985=100 Sep 81.50 --

September 25, 2013 7:30PM US New home sales Thousands Aug 394.00 --

September 26, 2013 2:00PM UK GDP (YoY) % Change 2Q F 1.50 --

6:00PM US GDP Qoq (Annualised) % Change 2Q T 2.50 --

October 1, 2013 6:30AM China PMI Manufacturing Value Sep 51.00 --

2:00PM UK PMI Manufacturing Value Sep 57.20 --1:25PM Germany Unemployment change (000's) Thousands Sep 7.00 --

Source: Bloomberg, Angel Research

September 12, 2013

Market Outlook

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Macro watch

Exhibit 1:Q uarterly G DP 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:Manufacturing and services PMI

Source: Ma rket, Angel Research; N ote: Level above 50 ind icates expansion

Exhibit 5:Exports and imp orts growth trends

Source: Bloomberg, Angel Research

Exhibit 6:Key policy rates

Source: RBI, Angel Research

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 4.4

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

(%)

(0.1)

2.0

(0.7)

8.4

(1.0) (0.6)

2.5

0.6

3.5

1.9

(2.8)(2.2)

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

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

May-1

3

Jun-1

3

(%)

8.17.3 7.2 7.3 7.3 7.3

5.7

4.8 4.6 4.9

5.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Sep-1

2

Oc-1

2

No-1

2

Dec-1

2

Jan-1

3

Feb

-13

Mar-13

Apr-13

May-1

3

Jun-1

3

Jul-13

(%)

46.0

48.0

50.0

52.0

54.0

56.0

58.0

60.0

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

Jun-1

3

Jul-13

Mfg. PMI Services PMI

(9.0)

(6.0)

(3.0)

0.0

3.0

6.09.0

12.0

15.0

Sep-1

2

Oc-1

2

No-1

2

Dec-1

2

Jan-1

3

Feb

-13

Mar-13

Apr-13

Ma-1

3

Jun-1

3

Jul-13

Aug-1

3

Exports yoy growth Imports yoy growth(%)

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Sep-12

Oct-12

Nov-12

Nov-12

Dec-12

Jan-13

Jan-13

Feb-13

Mar-13

Mar-13

Apr-13

Ma-13

Ma-13

Jun-13

Jul-13

Jul-13

Aug-13

Sep-13

Repo rate Reverse Repo rate CRR(%)

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

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

Agri / Agri Chemical

Rallis Neutral 149 - 2,906 1,674 1,923 13.7 13.7 6.8 7.6 22.0 19.7 4.1 3.6 20.0 19.6 1.9 1.7

United Phosphorus Buy 135 225 5,964 10,091 11,302 16.5 16.5 19.2 22.5 7.0 6.0 1.1 1.0 17.0 17.2 0.8 0.6

Auto & Auto Ancillary

Amara Raja Batteries Neutral 305 - 5,209 3,474 3,952 15.5 15.5 19.0 21.0 16.0 14.5 3.9 3.2 27.2 24.2 1.5 1.3

Apollo Tyres Neutral 64 - 3,228 13,409 15,106 11.8 11.6 13.1 15.4 4.9 4.2 0.8 0.7 17.9 17.8 0.4 0.3

Ashok Leyland Buy 14 18 3,624 12,945 15,049 6.3 8.2 0.2 1.5 78.3 9.1 1.2 1.1 1.1 9.1 0.4 0.3

Automotive Axle# Neutral 201 - 304 700 890 8.7 10.7 11.1 25.8 18.1 7.8 1.1 1.0 6.2 13.9 0.5 0.4

Bajaj Auto Accumulate 1,999 2,115 57,834 22,042 25,399 19.3 19.3 121.1 141.0 16.5 14.2 5.9 4.7 39.4 36.6 2.2 1.8

Bharat Forge Neutral 251 - 5,835 5,942 6,417 15.2 15.5 15.6 19.7 16.0 12.8 2.4 2.1 15.4 17.3 1.2 1.0

Bosch India* Accumulate 8,350 9,096 26,219 9,301 10,895 16.8 18.0 339.9 423.1 24.6 19.7 4.1 3.5 16.6 17.6 2.5 2.1

CEAT Buy 112 170 403 5,159 5,628 9.3 9.0 43.5 48.6 2.6 2.3 0.4 0.4 18.4 17.5 0.2 0.2

Exide Industries Accumulate 131 148 11,152 6,899 7,873 14.7 14.7 7.9 9.0 16.6 14.5 2.8 2.5 18.3 18.0 1.3 1.1

FAG Bearings* Neutral 1,165 - 1,936 1,336 1,572 13.8 16.0 75.6 102.4 15.4 11.4 2.0 1.7 13.4 15.8 1.2 1.0

Hero Motocorp Neutral 2,089 - 41,705 25,543 28,228 14.5 14.5 110.5 148.1 18.9 14.1 7.2 5.7 40.8 44.9 1.4 1.3

JK Tyre Buy 88 152 362 7,376 8,262 10.0 9.8 56.0 60.9 1.6 1.5 0.3 0.3 22.7 20.2 0.4 0.4

Mahindra and Mahindra Buy 826 1,011 50,867 42,318 48,067 12.0 12.2 58.5 67.1 14.1 12.3 2.8 2.4 21.6 21.1 0.9 0.8

Maruti Buy 1,361 1,571 41,107 45,877 52,733 11.2 11.2 93.0 104.7 14.6 13.0 2.0 1.7 14.2 14.0 0.7 0.6

Motherson Sumi Buy 209 242 12,307 28,442 31,914 8.4 8.7 13.0 16.1 16.1 13.0 4.2 3.3 29.4 28.6 0.6 0.5

Subros Buy 19 23 116 1,230 1,398 10.5 10.5 2.3 3.8 8.3 5.1 0.4 0.4 4.8 7.6 0.3 0.3

Tata Motors Neutral 341 - 91,733 215,043 240,077 13.5 13.7 35.1 39.4 9.7 8.6 2.3 1.8 26.2 23.3 0.5 0.4

TVS Motor Buy 31 36 1,454 7,659 8,528 6.0 6.2 4.9 5.9 6.3 5.2 1.1 0.9 17.8 19.0 0.1 0.1

Capital Goods

ABB* Sell 579 442 12,264 8,037 9,087 5.8 6.9 12.2 17.0 47.4 34.0 4.6 4.4 9.8 13.1 1.5 1.3

BGR Energy Neutral 117 - 848 3,541 4,041 11.8 10.7 21.1 22.9 5.6 5.1 0.6 0.6 21.8 19.5 0.5 0.5

BHEL Neutral 140 - 34,364 42,227 38,453 16.0 14.4 18.8 15.0 7.5 9.4 1.5 1.4 21.7 15.4 0.6 0.8

Blue Star Buy 151 208 1,359 2,941 3,099 3.4 4.2 6.0 9.3 25.3 16.3 3.1 2.7 12.9 18.0 0.6 0.5

Crompton Greaves Accumulate 90 103 5,754 13,418 14,654 5.8 6.7 5.8 7.8 15.5 11.5 1.5 1.4 10.1 12.5 0.5 0.5

Jyoti Structures Neutral 20 - 161 3,312 3,555 9.0 9.0 4.5 6.5 4.3 3.0 0.2 0.2 5.6 7.7 0.3 0.3

KEC International Buy 26 36 671 7,709 8,399 6.2 6.9 5.1 8.1 5.1 3.2 0.5 0.5 16.6 21.5 0.3 0.2

Thermax Neutral 582 - 6,930 5,832 6,397 9.1 9.6 28.8 32.9 20.2 17.7 3.3 2.9 17.2 17.3 1.1 1.0

Cement

ACC Buy 1,052 1,225 19,758 11,581 13,009 17.6 19.3 63.9 81.5 16.5 12.9 2.5 2.2 15.6 18.2 1.4 1.2


Market Outlook

Stock Watch

September 12, 2013

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Cement

Ambuja Cements Neutral 186 - 28,669 9,975 11,409 22.4 23.1 9.4 11.1 19.8 16.7 3.0 2.8 15.7 17.2 2.4 2.0

India Cements Neutral 50 - 1,531 4,796 5,357 16.4 16.1 7.3 9.5 6.8 5.3 0.4 0.4 6.4 8.0 0.7 0.6

J K Lakshmi Cement Buy 59 79 696 2,235 2,684 19.4 21.4 15.0 18.4 3.9 3.2 0.5 0.4 13.2 14.3 0.4 0.9

Madras Cements Neutral 166 - 3,961 4,010 4,524 23.5 23.4 14.9 18.3 11.2 9.1 1.5 1.3 14.0 15.2 1.6 1.4

Shree Cement^ Neutral 3,991 - 13,904 6,316 7,162 26.5 25.7 294.6 340.5 13.6 11.7 2.9 2.4 24.0 22.7 1.7 1.4

UltraTech Cement Neutral 1,732 - 47,501 22,021 25,274 22.0 21.6 99.5 113.3 17.4 15.3 2.7 2.4 16.7 16.6 2.2 2.0

Construction

Ashoka Buildcon Buy 49 60 769 1,912 2,131 21.0 21.5 5.0 5.5 9.7 8.9 0.7 0.7 8.8 7.6 1.7 1.8

Consolidated Co Neutral 6 - 110 1,715 1,824 2.4 6.2 (2.9) (0.4) (2.0) (16.5) 0.2 0.2 0.5 0.5

IRB Infra Buy 78 106 2,576 3,805 4,248 45.1 45.3 15.0 15.8 5.2 4.9 0.7 0.7 14.5 13.9 2.9 3.1

ITNL Buy 120 156 2,335 7,423 7,970 27.5 28.7 30.3 32.0 4.0 3.8 0.6 0.5 15.0 14.0 2.4 2.5

IVRCL Infra Neutral 13 - 386 5,673 5,892 7.8 7.6 (1.7) (2.0) (7.6) (6.4) 0.2 0.2 0.6 0.6

Jaiprakash Asso. Reduce 43 41 9,631 12,946 14,897 24.7 25.6 1.2 2.7 35.4 16.2 0.7 0.7 2.0 4.3 2.6 2.4

Larsen & Toubro Buy 817 1,002 75,547 68,946 78,040 10.0 10.0 49.0 55.2 16.7 14.8 2.4 2.2 14.9 15.3 1.2 1.1

Nagarjuna Const. Buy 20 30 518 6,167 6,945 8.0 8.2 2.7 3.6 7.6 5.6 0.2 0.2 2.7 3.6 0.4 0.4

Punj Lloyd Neutral 25 - 822 12,726 14,226 8.2 8.2 0.9 1.0 28.8 24.2 0.3 0.3 1.0 1.2 0.6 0.6

Sadbhav Engg. Buy 57 99 870 2,462 2,731 10.6 10.6 5.3 6.0 10.9 9.6 1.0 0.9 9.2 9.6 0.6 0.6

Simplex Infra Neutral 56 - 275 6,237 6,908 9.1 9.0 9.9 13.9 5.6 4.0 0.2 0.2 3.7 5.0 0.5 0.5

Unity Infra Neutral 20 - 146 2,146 2,339 12.9 13.0 9.3 9.6 2.1 2.1 0.2 0.2 8.0 7.7 0.7 0.7

Financials

Allahabad Bank Neutral 76 - 3,808 6,843 7,528 2.5 2.5 26.0 30.1 2.9 2.5 0.4 0.4 11.8 12.4 - -

Andhra Bank Neutral 55 - 3,069 4,868 5,390 2.4 2.5 12.3 16.6 4.5 3.3 0.4 0.4 7.9 10.0 - -

Axis Bank Accumulate 1,030 1,162 48,330 19,280 22,886 3.3 3.3 130.7 157.1 7.9 6.6 1.3 1.1 17.3 18.1 - -

Bank of Baroda Neutral 521 - 21,939 15,896 17,947 2.2 2.3 95.4 124.4 5.5 4.2 0.7 0.6 12.0 14.2 - -

Bank of India Neutral 167 - 9,940 14,482 16,069 2.3 2.2 55.0 62.2 3.0 2.7 0.5 0.4 13.7 13.9 - -

Bank of Maharashtra Neutral 39 - 2,590 4,529 4,780 3.0 2.8 12.3 11.8 3.2 3.3 0.5 0.4 16.5 14.1 - -

Canara Bank Neutral 222 - 9,848 11,454 12,378 2.0 2.0 52.4 60.5 4.3 3.7 0.5 0.4 9.8 10.4 - -

Central Bank Neutral 57 - 5,980 8,196 9,202 2.4 2.4 6.1 15.9 9.4 3.6 0.7 0.6 5.2 12.8 - -

Corporation Bank Neutral 271 - 4,146 5,641 6,083 2.0 2.0 82.7 98.1 3.3 2.8 0.4 0.4 12.6 13.5 - -

Dena Bank Neutral 52 - 1,810 3,307 3,531 2.2 2.4 17.5 21.6 3.0 2.4 0.4 0.3 11.9 13.2 - -

Federal Bank Neutral 298 - 5,101 2,798 3,250 3.0 3.0 38.1 51.9 7.8 5.8 0.7 0.7 9.8 12.3 - -


Market Outlook

Stock Watch

September 12, 2013

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Financials

HDFC Accumulate 812 906 126,344 8,679 10,350 3.6 3.6 37.5 44.7 21.7 18.2 4.5 4.0 30.1 30.7 - -

HDFC Bank Accumulate 646 735 154,381 27,392 33,264 4.6 4.6 36.3 45.1 17.8 14.3 3.6 3.0 21.9 22.8 - -

ICICI Bank Buy 969 1,126 111,879 25,727 29,969 3.2 3.2 83.2 96.7 11.7 10.0 1.5 1.4 14.9 15.4 - -

IDBI Bank Neutral 60 - 7,957 9,598 10,551 2.0 2.0 15.9 22.5 3.8 2.7 0.4 0.3 10.4 13.5 - -

Indian Bank Neutral 71 - 3,058 5,940 6,396 2.7 2.7 24.9 32.9 2.9 2.2 0.3 0.3 10.3 12.4 - -

IOB Neutral 46 - 4,232 7,692 8,627 2.2 2.3 8.1 15.2 5.7 3.0 0.4 0.3 5.9 10.5 - -

J & K Bank Neutral 1,183 - 5,736 3,038 3,370 3.7 3.9 214.2 202.6 5.5 5.8 1.0 0.9 19.8 16.3 - -

LIC Housing Finance Neutral 187 - 9,460 2,001 2,495 2.2 2.3 23.8 28.8 7.9 6.5 1.3 1.1 17.3 18.2 - -

Oriental Bank Neutral 158 - 4,613 6,918 7,459 2.6 2.5 46.7 52.5 3.4 3.0 0.4 0.4 10.8 11.1 - -

Punjab Natl.Bank Neutral 497 - 17,559 20,766 23,515 3.4 3.4 135.0 164.8 3.7 3.0 0.6 0.5 14.4 15.7 - -

South Ind.Bank Neutral 21 - 2,769 1,800 2,023 2.7 2.7 3.7 4.2 5.6 4.9 0.9 0.8 16.2 16.2 - -

St Bk of India Neutral 1,689 - 115,527 65,392 74,467 3.0 3.0 178.5 226.1 9.5 7.5 1.2 1.1 12.1 14.0 - -

Syndicate Bank Neutral 75 - 4,497 6,740 7,512 2.5 2.5 21.0 23.5 3.6 3.2 0.4 0.4 12.6 12.8 - -

UCO Bank Neutral 59 - 4,467 6,770 7,017 2.8 2.6 14.8 15.5 4.0 3.8 0.7 0.6 14.4 13.5 - -

Union Bank Neutral 118 - 7,030 10,458 11,809 2.5 2.5 32.0 40.6 3.7 2.9 0.5 0.4 11.6 13.4 - -

United Bank Neutral 32 - 1,210 3,386 3,884 2.3 2.5 12.4 20.0 2.6 1.6 0.3 0.2 10.0 14.7 - -

Vijaya Bank Neutral 39 - 1,940 2,718 2,941 1.8 1.9 7.0 9.0 5.6 4.4 0.5 0.4 8.2 9.8 - -

Yes Bank Neutral 303 - 10,933 4,417 5,486 2.7 2.8 42.9 49.5 7.1 6.1 1.5 1.3 23.9 22.8 - -

FMCG

Asian Paints Neutral 445 - 42,646 12,332 14,524 16.3 16.1 13.9 16.0 32.0 27.7 10.2 8.1 35.2 32.5 3.4 2.8

Britannia Neutral 745 - 8,921 6,422 7,367 6.9 7.3 24.2 29.7 30.8 25.1 10.9 8.4 39.6 37.7 1.4 1.2

Colgate Neutral 1,230 - 16,732 3,588 4,130 18.9 19.4 41.2 48.4 29.9 25.4 26.5 20.5 100.0 91.0 4.5 3.9

Dabur India Neutral 170 - 29,654 7,183 8,297 16.8 16.9 5.4 6.3 31.8 27.0 11.2 8.9 39.2 36.7 4.2 3.6

GlaxoSmith Con* Neutral 4,806 - 20,210 3,617 4,259 16.1 16.4 122.2 148.7 39.3 32.3 12.2 9.8 34.1 33.7 5.1 4.3

Godrej Consumer Neutral 835 - 28,435 7,801 9,017 16.2 15.9 25.1 29.7 33.2 28.2 7.2 6.0 24.9 24.2 3.8 3.2

HUL Neutral 643 - 139,042 28,415 31,962 13.6 14.1 16.7 18.2 38.6 35.4 37.0 26.9 112.2 88.1 4.8 4.2

ITC Neutral 330 - 261,004 34,294 39,991 36.8 37.0 11.3 13.3 29.2 24.7 9.6 7.8 36.1 34.9 7.3 6.2

Marico Neutral 210 - 13,542 5,104 5,876 15.1 15.2 7.2 8.6 29.4 24.5 5.7 4.7 21.1 20.9 2.7 2.3

Nestle* Neutral 5,052 - 48,710 9,330 10,860 21.8 21.9 123.3 149.7 41.0 33.8 20.1 14.7 56.4 50.3 5.3 4.5

Tata Global Neutral 151 - 9,319 8,070 8,958 9.8 9.9 7.6 8.5 19.9 17.7 2.3 2.2 9.3 9.7 1.2 1.0


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IT

HCL Tech^ Neutral 1,065 - 74,255 32,266 35,103 23.5 22.6 69.7 74.0 15.3 14.4 4.1 3.4 26.5 23.0 2.1 1.8

Hexaware* Accumulate 126 134 3,783 2,273 2,575 22.2 21.5 12.4 13.4 10.2 9.4 2.6 2.2 25.4 23.5 1.5 1.3

Infosys Neutral 3,121 - 179,193 48,731 52,962 26.9 27.1 180.8 200.3 17.3 15.6 3.7 3.2 20.4 19.3 3.0 2.7

Infotech Enterprises Neutral 188 - 2,102 2,128 2,341 17.2 17.6 21.3 23.2 8.8 8.1 1.4 1.2 14.9 14.0 0.6 0.5

KPIT Cummins Accumulate 144 155 2,787 2,769 3,122 18.3 17.8 15.3 16.6 9.4 8.7 2.0 1.6 20.9 18.4 1.0 0.8

Mindtree Neutral 1,051 - 4,370 2,871 3,110 20.4 20.7 102.6 111.2 10.3 9.5 2.5 2.0 24.8 20.3 1.2 1.0

Mphasis& Neutral 441 - 9,266 6,827 7,342 21.0 21.2 47.0 51.3 9.4 8.6 1.7 1.4 14.3 14.2 0.9 0.7

NIIT Neutral 21 - 353 1,144 1,267 9.0 9.1 4.3 5.4 5.0 4.0 0.5 0.5 10.3 12.0 0.1 -

Persistent Neutral 573 - 2,294 1,590 1,774 23.5 23.8 48.5 56.9 11.8 10.1 1.9 1.6 16.4 16.1 1.1 0.9

TCS Neutral 1,993 - 390,064 80,353 91,576 30.0 30.0 91.0 103.2 21.9 19.3 7.1 5.7 31.5 29.2 4.6 4.0

Tech Mahindra Accumulate 1,332 1,485 30,944 17,749 19,406 22.5 21.0 113.6 114.2 11.7 11.7 3.4 2.7 27.9 22.1 1.5 1.2

Wipro Neutral 475 - 117,145 43,610 47,320 21.6 22.2 30.0 33.0 15.9 14.4 3.5 3.0 20.7 19.4 2.2 1.9

Media

D B Corp Accumulate 248 267 4,552 1,783 1,968 23.8 25.0 13.6 16.0 18.2 15.5 4.4 3.8 22.5 22.9 2.5 2.2

HT Media Buy 90 112 2,126 2,205 2,380 14.1 14.4 7.6 8.4 11.9 10.8 1.3 1.2 10.7 10.7 0.6 0.5

Jagran Prakashan Buy 82 104 2,732 1,683 1,845 19.7 20.8 5.9 6.9 14.0 11.9 2.6 2.4 19.4 21.2 1.7 1.5

PVR Neutral 421 - 1,673 1,359 1,540 17.3 17.4 17.2 21.6 24.4 19.6 2.4 2.3 10.3 12.0 1.7 1.5

Sun TV Network Neutral 395 - 15,556 2,287 2,551 69.7 70.5 20.0 23.3 19.7 16.9 4.9 4.3 26.4 27.3 6.5 5.7

Metals & Mining

Bhushan Steel Reduce 481 419 10,896 12,640 15,667 28.5 31.5 25.9 38.6 18.6 12.5 1.1 1.0 6.1 8.5 2.7 2.2

Coal India Neutral 293 - 185,164 68,303 69,884 32.5 30.3 27.5 25.0 10.7 11.7 4.0 2.8 40.2 33.1 1.9 1.8

Electrosteel Castings Buy 12 15 383 1,976 2,017 11.8 12.7 0.1 1.2 183.6 9.7 0.1 - 0.1 1.9 0.6 0.1

GMDC Buy 85 115 2,703 1,701 1,985 47.8 48.8 17.4 20.6 4.9 4.1 0.9 0.8 20.7 20.9 1.1 0.8

Hind. Zinc Accumulate 130 143 54,866 12,389 13,093 48.5 51.7 15.2 17.0 8.5 7.6 1.5 1.3 18.5 18.0 2.2 1.8

Hindalco Neutral 114 - 21,884 95,465 102,491 8.4 9.0 13.9 17.2 8.2 6.7 0.6 0.6 7.6 8.7 0.6 0.5

JSW Steel Neutral 645 - 15,591 45,022 48,140 16.0 15.9 68.5 77.0 9.4 8.4 0.8 0.8 9.3 9.7 0.8 0.8

MOIL Neutral 219 - 3,679 956 982 42.3 44.3 25.3 26.2 8.7 8.4 1.2 1.1 14.6 13.7 1.2 1.3

Monnet Ispat Accumulate 132 139 840 2,199 2,575 21.6 22.8 30.7 38.6 4.3 3.4 0.3 0.3 7.7 8.9 1.5 1.1

Nalco Neutral 34 - 8,763 7,270 7,521 13.6 13.8 2.8 2.9 12.3 11.7 0.7 0.7 5.9 6.0 0.6 0.6

NMDC Accumulate 125 142 49,420 10,718 11,514 66.6 64.5 15.5 16.1 8.1 7.7 1.6 1.5 21.2 20.0 2.5 2.3

SAIL Neutral 51 - 20,960 44,060 54,227 9.2 10.9 5.3 6.8 9.6 7.5 0.5 0.5 5.2 6.5 0.7 0.6


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Metals & Mining

Sesa Goa* Neutral 188 - 55,854 3,817 5,781 12.1 17.7 27.0 29.6 7.0 6.4 0.9 0.8 12.9 12.5 15.5 10.2

Tata Steel Neutral 316 - 30,690 153,862 167,209 9.4 10.5 32.8 53.5 9.6 5.9 0.8 0.7 9.0 13.2 0.5 0.5

Sarda Accumulate 91 98 326 1,323 1,398 17.2 17.9 25.3 27.8 3.6 3.3 0.3 0.3 9.5 9.6 0.6 0.5

Prakash Industries Accumulate 32 37 433 2,486 2,637 15.2 15.0 13.7 14.2 2.4 2.3 0.2 0.2 9.1 8.7 0.4 0.4

Godawari Power andIspat

Neutral 81 - 267 2,171 2,317 14.9 15.8 36.4 46.6 2.2 1.8 0.2 0.2 11.6 13.0 0.5 0.5

Oil & Gas

Cairn India Accumulate 320 364 61,059 18,403 17,925 71.9 62.1 62.1 57.4 5.1 5.6 1.1 0.9 22.6 17.8 2.1 1.9GAIL Neutral 304 - 38,555 49,700 48,822 16.0 16.6 32.9 33.4 9.2 9.1 1.4 1.2 15.9 14.4 0.3 0.2

ONGC Buy 289 350 247,083 164,816 196,050 33.7 36.6 30.0 38.7 9.6 7.5 1.5 1.3 16.0 18.5 1.2 0.9

Reliance Indus tr ies Accumulate 887 953 286,655 417,018 442,434 8.4 8.4 70.3 75.2 12.6 11.8 1.3 1.2 12.0 11.6 0.7 0.6

Gujarat Gas* Neutral 208 - 2,663 3,270 3,414 12.8 12.6 22.6 23.1 9.2 9.0 2.4 2.2 28.2 25.6 0.7 0.6

Indraprastha Gas Neutral 267 - 3,743 3,656 4,456 21.5 18.6 25.7 26.8 10.4 10.0 2.1 1.8 22.1 19.6 1.0 0.8

Petronet LNG Accumulate 118 135 8,869 39,449 43,315 5.3 5.9 14.1 16.9 8.4 7.0 1.7 1.4 21.7 21.9 0.3 0.3

Gujarat State PetronetLtd.

Buy 50 67 2,788 1,002 1,021 91.4 91.5 8.2 8.4 6.1 5.9 0.8 0.7 14.3 13.0 2.3 2.1

Pharmaceuticals

Alembic Pharma Buy 142 165 2,668 1,736 2,008 17.1 18.9 10.5 13.8 13.5 10.3 4.1 3.1 34.4 34.7 1.6 1.3

Aurobindo Pharma Buy 187 271 5,441 6,641 7,637 15.9 15.9 17.3 20.6 10.8 9.1 1.7 1.4 19.5 18.9 1.3 1.1

Aventis* Neutral 2,425 - 5,585 1,682 1,917 15.6 15.6 91.9 101.7 26.4 23.8 3.7 3.7 15.6 17.1 2.8 2.3

Cadila Healthcare Buy 652 894 13,359 7,123 8,367 15.5 15.7 37.3 44.7 17.5 14.6 3.7 3.1 22.9 22.9 2.2 1.9

Cipla Accumulate 435 477 34,899 9,274 10,796 23.1 23.1 21.0 23.8 20.7 18.3 3.3 2.9 17.2 16.8 3.5 2.9

Dr Reddy's Accumulate 2,249 2,535 38,228 13,377 15,350 20.4 20.1 112.1 126.6 20.1 17.8 4.3 3.6 23.5 21.8 2.9 2.5

Dishman Pharma Buy 47 73 383 1,394 1,534 22.5 22.4 14.8 16.6 3.2 2.9 0.3 0.3 10.8 11.0 0.9 0.7

GSK Pharma* Neutral 2,417 - 20,470 2,744 2,964 22.0 23.4 59.2 66.6 40.8 36.3 10.2 9.8 24.9 27.5 6.6 6.1

Indoco Remedies Buy 67 78 613 747 906 15.3 15.3 5.9 7.6 11.3 8.8 1.3 1.2 12.5 14.4 1.1 0.9

Ipca labs Neutral 690 - 8,704 3,296 4,087 20.5 21.7 36.8 48.3 18.8 14.3 4.4 3.5 26.5 27.3 2.8 2.2

Lupin Accumulate 859 904 38,475 11,576 13,855 22.0 22.0 35.8 43.0 24.0 20.0 5.8 4.6 27.1 25.8 3.4 2.8

Ranbaxy* Reduce 449 426 19,013 10,400 11,331 6.6 8.4 11.4 15.2 39.4 29.6 4.2 3.7 11.1 13.1 1.9 1.7

Sun Pharma Neutral 562 - 116,437 13,509 15,846 41.0 41.0 16.5 19.9 34.1 28.3 6.9 5.7 22.0 22.0 8.1 6.7

Power

GIPCL Accumulate 59 65 887 1,444 1,482 33.4 33.0 13.7 14.8 4.3 4.0 0.5 0.5 12.3 12.0 0.7 0.4

NTPC Buy 138 163 113,581 75,046 81,780 23.5 23.9 12.7 13.6 10.9 10.1 1.3 1.2 12.2 12.0 2.2 2.2

Real Estate

DLF Buy 151 179 26,805 8,293 9,622 36.5 36.1 5.7 6.7 26.4 22.3 0.9 0.9 3.7 4.1 5.3 4.4


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Real Estate

MLIFE Buy 412 483 1,682 888 1,002 27.0 29.9 33.9 42.1 12.1 9.8 1.2 1.1 9.9 11.2 2.5 2.2

Telecom

Bharti Airtel Neutral 335 - 134,093 83,535 92,173 32.0 33.1 9.2 12.9 36.6 26.0 2.4 2.2 6.8 8.9 2.3 2.0

Idea Cellular Neutral 168 - 55,771 26,717 29,443 30.6 29.8 5.5 6.7 30.9 25.0 3.4 3.0 11.1 12.0 2.4 2.1

Rcom Neutral 144 - 29,691 22,050 23,647 30.6 30.8 3.2 5.2 45.0 27.6 0.9 0.9 1.9 3.1 3.0 2.7

Others

Abbott India* Buy 1,391 1,628 2,957 1,788 1,996 12.5 12.7 71.7 81.4 19.4 17.1 3.9 3.4 21.7 21.2 1.4 1.2

Bajaj Electricals Accumulate 168 184 1,675 3,885 4,472 4.0 5.8 6.8 15.4 24.9 10.9 2.2 1.9 8.8 17.3 0.4 0.4

Cera Sanitaryware Buy 506 613 640 631 797 14.5 13.7 42.6 51.1 11.9 9.9 2.8 2.3 26.5 25.3 1.0 0.8

Cravatex Accumulate 279 307 72 248 284 6.5 7.3 27.2 38.2 10.3 7.3 1.6 1.4 15.7 18.5 0.5 0.4

Finolex Cables Buy 52 68 795 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 Accumulate 310 349 404 2,304 2,649 3.1 3.6 28.0 43.7 11.1 7.1 0.3 0.3 3.1 4.7 0.1 0.1

Goodyear India* Accumulate 306 345 705 1,458 1,542 8.3 9.0 32.3 37.0 9.5 8.3 1.7 1.5 19.5 19.3 0.3 0.2

Hitachi Buy 112 153 305 1,080 1,199 8.9 9.1 18.3 19.1 6.1 5.9 1.1 0.9 19.2 17.0 0.4 0.4

Honeywell Automation* Neutral 2,562 - 2,265 1,842 2,131 7.7 7.8 111.1 130.9 23.1 19.6 2.9 2.6 13.3 13.9 1.1 1.0

IFB Agro Accumulate 141 156 127 491 642 12.3 13.8 35.0 50.9 4.0 2.8 0.7 0.5 18.2 21.6 0.2 0.1

ITD Cementation Buy 159 194 183 1,365 1,502 10.9 11.2 18.2 28.0 8.7 5.7 0.4 0.4 5.1 7.4 0.6 0.5

Jyothy Laboratories Buy 150 199 2,497 1,244 1,523 14.1 14.2 5.9 10.0 25.4 15.1 3.0 2.7 12.7 18.8 2.4 1.8

MRF Buy 12,827 16,218 5,440 11,799 12,587 14.1 13.5 1,792.0 1,802.0 7.2 7.1 1.5 1.3 23.5 19.2 0.6 0.5

Page Industries Buy 4,006 4,669 4,468 1,059 1,296 19.5 19.8 125.0 155.6 32.1 25.7 15.9 11.6 56.3 52.2 4.3 3.5

Relaxo Footwears Buy 712 981 855 1,196 1,401 11.9 12.6 55.6 75.4 12.8 9.4 3.1 2.3 27.1 28.1 0.9 0.7

Siyaram Silk Mills Buy 194 228 182 1,158 1,322 10.6 11.0 60.5 75.9 3.2 2.6 0.5 0.4 16.8 18.1 0.4 0.3

Styrolution ABS India* Buy 368 492 646 1,007 1,108 8.4 8.7 30.3 35.1 12.1 10.5 1.4 1.2 11.7 12.2 0.6 0.6

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

Tata Sponge Iron Buy 270 371 415 814 849 17.0 17.6 64.6 69.2 4.2 3.9 0.6 0.5 14.5 13.8 0.1 (0.1)

TTK Healthcare Buy 511 632 396 416 481 4.5 6.1 16.2 25.3 31.5 20.2 3.9 3.4 12.6 18.1 0.8 0.7

Tree House Buy 235 297 846 153 194 53.0 52.8 12.4 15.6 19.0 15.0 2.2 2.0 11.8 13.1 5.7 4.4

TVS Srichakra Buy 181 230 139 1,591 1,720 6.1 6.4 30.5 38.3 5.9 4.7 0.8 0.7 13.5 15.5 0.3 0.3

United Spirits Neutral 2,558 - 37,175 12,294 14,162 12.0 12.0 42.1 67.7 60.8 37.8 4.3 3.9 9.1 10.7 3.4 2.9

Vesuvius India* Buy 356 439 723 600 638 20.1 19.4 35.7 36.6 10.0 9.7 1.8 1.6 19.4 17.1 1.0 0.9

HSIL Buy 84 117 556 2,042 2,363 14.6 14.8 12.3 16.5 6.9 5.1 0.5 0.5 7.6 9.4 0.7 0.6

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on September 11, 2013*Note: Sesa Goa's numbers reflect the standalone Sesa Goa business only. We will revise our numbers once the consolidated entity Sesa- Sterlite is formed.


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Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com

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