market outlook, 14-08-2013

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www.angelbroking.com

Market OutlookAugust 14, 2013

Dealers DiaryIndian markets are expected to open flat to negative today tracking marginally

negative opening trades in the SGX Nifty and mixed start to the Asian markets.

The US markets fluctuated over the course of the trading day on Tuesday, as

traders digested relatively upbeat retail sales data as well as comments regarding

the outlook for the Federal Reserve's stimulus program from Atlanta Fed President

Dennis Lockhart. A report released by the Commerce Department showed fourth

consecutive monthly increase in retail sales during July. Meanwhile, the European

markets finished the trading session on Tuesday in positive territory, thanks to

several better than expected economic reports from the region. Germany's

economic sentiment surged to a five-month high in August, while UK home prices

increased at the fastest pace in almost seven years in July.

Meanwhile, Indian markets rose sharply higher to one-week highs on Tuesday,

helped by firm global cues as well as concerted efforts of the government to curb

the widening current account deficit. Investor sentiment improved after current RBIGovernor said that perhaps there is a need to reduce the reserves set aside by

banks through cash reserve ratio or statutory liquidity ratio.

Markets TodayThe trend deciding level for the day is 19,114/ 5,661 levels. If NIFTY trades above

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

up to 19,364 19,498 / 5,743 5,787 levels. However, if NIFTY trades below

19,114/ 5,661 levels for the first half-an-hour of trade then it may correct up to

18,980 18,731 / 5,617 5,535 levels.

Indices S2 S1 PIVOT R1 R2SENSEX 18,731 18,980 19,114 19,364 19,498

NIFTY 5,535 5,617 5,661 5,743 5,787

News Analysis

Import duty on gold hiked by 200bp to 10% Workers union at Bajaj Autos Chakan plant calls off strike Result Review: MM, Tata Steel, Hindalco, GSPL, Sadbhav Engineering, IVRCL,

CCCL, Cravatex

Result Preview: SAIL, LIC Housing, Nalco, Simplex InfrastructuresRefer detailed news analysis on the following page

Net Inflows (August 12, 2013)

` cr Purch Sales Net MTD YTDFII 3,222 2,807 416 1,053 66,451

MFs 838 569 269 (370) (14,716)

FII Derivatives (August 13, 2013)` cr Purch Sales Net Open InterestIndex Futures 1,917 2,209 (292) 10,752

Stock Futures 2,136 1,738 398 27,365

Gainers / LosersGainers Losers

Company Price (`) chg (%) Company Price (`) chg (%)Oberoi Realty 191 9.9 MCX 267 (5.0)

Bajaj Finance 1,243 9.9 Hindustan Copp. 62 (2.9)

Future Retail 91 9.2 JP Power 11 (2.6)

Ranbaxy Labs 398 8.2 Hindalco Ind. 91 (2.5)

DLF 150 8.0 Ambuja Cements 174 (2.4)

Domestic Indices Chg (%) (Pts) (Close)BSE Sensex 1.5 283 19,230

Nifty 1.5 87 5,699

MID CAP 1.1 62 5,554

SMALL CAP 1.0 53 5,369

BSE HC 1.7 149 9,134

BSE PSU 0.5 28 5,313

BANKEX 2.9 323 11,408

AUTO 2.3 239 10,528

METAL (0.1) (4) 7,162

OIL & GAS 0.3 28 8,331

BSE IT 1.8 132 7,645

Global Indices Chg (%) (Pts) (Close)Dow Jones 0.2 31 15,451NASDAQ 0.4 14 3,684

FTSE 0.6 38 6,612

Nikkei 2.6 348 13,867

Hang Sang 1.2 270 22,541

Straits Times 0.4 12 3,244

Shanghai Com 0.2 5 2,106

Indian ADR Chg (%) (Pts) (Close)INFY 1.7 0.9 $50.4

WIT 4.9 0.5 $9.6IBN 3.8 1.2 $32.4

HDB 3.8 1.2 $32.4

Advances / Declines BSE NSEAdvances 1,432 871

Declines 913 447

Unchanged 144 83

Volumes (` cr)BSE 1,964

NSE 11,554

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Import duty on gold hiked by 200bp to 10%

The government has raised import duty on gold and platinum by 200bp to 10%

from 8% earlier. In addition, excise duty on refined gold bars has been upped to

9% from 7% and that on silver to 8% from 4%.

This is the third hike in import duty on gold 2013 itself. In January 2013 the duty

was hiked from 4% to 6%. Gold imports soared in the month of April and May

2013 to touch USD6.8bn and USD7.7bn respectively, following which another

200bp hike was imposed in June 2013 to 8%. We believe that much of the

consumer demand for the metal has been front-ended with a decline in prices.

That, coupled with dampening investment demand and tighter policy restrictions

on import of gold have brought down imports to about USD2bn in the months of

June and July 2013 each.

These new measures come on the back of tighter import norms for gold imposed

by the RBI. As per the revised scheme announced on July 22, 2013 the banks/

agencies nominated for import of gold are mandated to ensure that at least 20%

of every lot of import of gold is exclusively made available for the purpose of

export. Of the imported quantity, 20% would be retained in the customs bonded

warehouses and any fresh imports of gold can take place only after one-fifth of the

quantity released is actually exported.

The Finance Minister had earlier announced some steps to attract foreign inflows

in the economy and stabilize the exchange rate. These include 1) public sector

financial institutions would be allowed to raise quasi-sovereign bonds to finance

long-term infrastructure needs. PFC, IIFCL and IRFC are expected to raise money

to the tune of USD4bn through quasi sovereign bonds, 2) PSU oil companies

would be allowed to raise funds (USD4bn) through External Commercial

Borrowings (ECBs) and trade finance and 3) make NRI bonds attractive by

deregulating interest rates on foreign currency non-resident. Banks would also not

be required to meet statutory reserve requirements on these deposits. Put together,

the FM expects these measures to bring in USD11bn in the economy.

The RBI has also taken a number of steps to tackle liquidity and thereby raised

yields on the short end of the curve. This is expected to curb speculative attack on

the currency and attract FII investors to the debt market.

We believe that these steps are sentimentally positive for the INR in the near-term

and are also likely to tackle worries over financing the current account deficit. Thecurrent account deficit itself is likely to moderate during FY2014 on account of

lower gold imports and due to the INR depreciation, import substitution of cheaper

manufactured goods from abroad may also ensue.

Workers union at Bajaj Autos Chakan plant calls off strike

According to media reports, workers union at Bajaj Autos (BJAUT) Chakan plant

has called off the strike and is slated to resume work from August 14, 2013. The

workers at the plant had been on a strike since June 25, 2013 demanding

company shares at a discounted price in addition to better work conditions and

withdrawal of charges slapped against 21 employees. Incidentally, none of the

demands of the workers have been met by the management yet. However,

according to reports, the workers union will continue to hold talks with the

management to resolve the differences. It has been further learnt that the union is

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demanding revision in wage agreement that was signed in 2009. The reports

indicate that the existing wage agreement has been scrapped and the company

management is currently working on a new agreement.

Meanwhile, according to the Management, the company has lost sales of only

20,000-25,000 units due to the Chakan strike which continued for around 50days. The Chakan plant which has an installed capacity of 1.2mn units annually

(~22% of the total installed capacity), manufactures products like Pulsar, Avenger,

Ninja and KTM. While the Chakan plant operated at 50-60% utilization levels

during the strike period, the company had shifted the Pulsar production to

Aurangabad facility to make good the production loss at Chakan plant.

We see this as a positive development for the company as with the strike being

called off, the company will be able to reach full production levels in the next three

to four days. This is very important for the company going into the festival season

and also due to the fact that the company has plans to launch new family of

Discover models around the festival season. We continue to maintain our positiveview on the company. At `1,859, the stock is trading at 13.3x FY2015E earnings.

We retain our Accumulate rating on the stock with a target price of `2,102,valuing the company at 15x FY2015E earnings.

Result Review

MM (CMP: `871/ TP: Under Review/ Upside: Under Review)For 1QFY2014, Mahindra and Mahindra (MM) reported mixed performance. Top-

line at `10,023cr was slightly lower than our expectations of `10,563cr on

account of a 3.7% qoq decline in net average realization. However, bottom-line at`938cr was ahead of our estimates of `850cr mainly driven by 174.4% yoy

(78.1% qoq) increase in other income and aided further by lower tax-rate (23.2%

vs. 25.1% yoy). The overall results were driven by an impressive performance by

the tractor segment following strong growth in volumes even though the

automotive segment posted muted results.

The top-line registered 7% yoy (down 4.4% qoq) growth to `10,023cr led by 6.4%

yoy (down 0.7% qoq) growth in volumes and 0.6% yoy growth in net average

realization. The volume growth for the quarter was driven by an extremely strong

growth in the tractors segment (up 25.2% yoy) on the back of the expectations of

normal monsoon and better prospects for kharif crop. The automotive segmentvolumes however, remained flat as utility vehicle volumes witnessed a sharp

slowdown following an increase in excise duty and also due to increasing

competition in the segment. The net average realization witnessed a decline of

3.7% sequentially as average realization in the tractor and automotive segments

declined by 9% and 2.5% qoq respectively. While the tractor segment revenues

posted a strong growth of 26.7% yoy (36.6% qoq); automotive segment revenues

recorded a 2.5% yoy (sharp fall of 19.6% qoq) decline during the quarter. On the

operating front, EBITDA margins expanded 100bp yoy (74bp qoq) to 12.8%

marginally better than our expectations of 12.5%. The margin performance was

led by softening of commodity prices, cost control initiatives, lower share of traded

goods following decline in automotive volumes and also due to greater share of

tractors (37.7% as against 25% yoy) in the product-mix. As a result, operating front

grew 16% yoy (1.4% qoq) to `1,287cr. The adjusted bottom-line nevertheless,

surged 29.3% yoy (17.4% qoq) to `938cr, ahead of our expectations of `850cr.

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The bottom-line benefited from higher other income at `164cr (against `60cr in

1QFY2013) aided by dividend income of `81cr from the subsidiaries. Lower tax-

rate on account of higher R&D spends also boosted the bottom-line performance

during the quarter.

We retain our positive view on MM and maintain our Buy rating on the stock as weexpect strong growth in the tractor volumes to offset the weakness in theautomotive segment. However, our target price is currently Under Review.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 43,371 12.3 3,754 63.6 23.3 13.7 2.9 7.2 0.8

FY2015E 49,049 12.5 4,278 72.5 22.2 12.0 2.5 5.9 0.7

Tata Steel (CMP: `241/ TP: Under Review/ Upside: -)

Tata Steels consolidated 1QFY2014 net profit was above our expectations on

account of better-than-expected cost performance at its European operations. Its

net sales decreased 3.0% yoy to `32,805 (in line with our estimate of `32,728cr).

Consolidated steel sales volumes increased 7.0% yoy to 6.01mn tonnes in

1QFY2014. Its India operations net sales grew by 6.1% yoy to `9,455cr due to

higher sales volumes (+26.4% yoy to 2.01mn tonnes). On the international front,

Tata Steel Europes (TSE) volumes declined by 2.2% yoy to 3.1mn tonne.

EBITDA/tonne at Tata Steel India stood at `14,450 while EBITDA/tonne at Tata

Steel Europe stood at `2,473 (which was better than our expectation). Overall, its

EBITDA increased 8.4% yoy to `3,688cr, representing an EBITDA margin of

11.2%. Tax expenses decreased by 60.9% yoy to `351cr; hence, its adjusted net

profit grew by a massive 87.5% yoy to`

1,121cr (above our estimate of`

487cr).We maintain our Buy rating on the stock while we keep our target price underreview.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (`cr) (`) (%) (x) (x) (x) (x)FY2014 140,917 9.7 1,918 19.7 5.5 12.2 0.7 7.0 0.7

FY2015 151,537 10.8 3,101 31.9 8.3 7.6 0.6 7.0 0.8

Hindalco (CMP: `91/ TP: -/ Upside :-)

Hindalcos standalone 1QFY2014 net profit was below our expectations due to

higher-than-expected interest cost. Its net sales decreased 3.3% yoy to `5,767

(below our estimate of `6,810cr). Its raw material costs and other expenses

decreased by 5.8% and 6.8% yoy, respectively. Hence, its EBITDA increased 3.3%

yoy to `478cr. Other income increased by 31.2% yoy to `225cr whereas interest

costs increased by 82.5% yoy to `149cr. There was an exceptional item in the

other income and adjusting for that its net profit declined by 8.0% yoy to `271cr

(below our estimate of `328cr). We maintain our Neutral rating on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 90,717 8.7 2,513 13.1 7.2 6.9 0.5 6.2 0.5

FY2015E 95,092 9.1 2,821 14.7 7.5 6.2 0.4 5.5 0.5

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Gujarat State Petronet (CMP: `55/ TP: Under Review)

Gujarat State Petronet Ltd (GSPL) reported 1QFY2014 results. Total operating

revenues increased by 10.8% yoy to `296cr mainly due to increase in realizations

partially offset by decline in transmission volumes. Transmission volumes for

1QFY2014 decreased by 28.8% yoy to 2015 mmscm. EBIDTA also increased by8.0% yoy to `270cr mainly due to higher realizations. Depreciation expenses rose

by 4.5% yoy to `46cr and interest costs rose 18.5% to `38cr. Hence, PAT increased

at a lower rate of 1.6% yoy to `124cr. We maintain our Buy view on the stock butkeep our target price under review.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 1,171 91.9 569 10.1 17.3 5.5 0.9 2.3 2.1

FY2015E 1,287 91.9 639 11.3 16.8 4.9 0.8 1.8 1.7

Sadbhav Engineering (CMP: `73/ TP: Under Review)

For 1QFY2014, Sadbhav Engineering (SEL) reported a poor set of numbers which

were below our estimates. SEL posted decent set of numbers on the revenue front;

however owing to high interest burden earnings were below our estimate. On the

top-line front, SEL reported a revenue growth of 33.6% yoy to `561cr in

1QFY2014 against our estimate of `591cr. This was mainly on the back of pick up

in execution in remaining under construction projects and lower base of last year.

On the margin front, the company posted EBITDAM of 10.3% up by 98bp yoy and

was slightly lower than our estimate of 10.6%. Interest cost grew by 61.9% yoy to

`28cr and was higher than our estimate by 25.3%. On the bottom-line front,

companys PAT reported a decline of 69.2% yoy to `16cr in 1QFY2014 againstour estimate of `23cr. This was mainly due to lower-than-expected operational

performance and higher interest expense during the quarter. At CMP, the stock is

trading at P/E and P/BV of 10.9x and 1.1 FY2015 earnings. The stock rating iscurrently under review. We shall revise our estimates post earnings conference callwith the management which is expected to be scheduled on August 14, 2013 at2.30pm.Y/E Sales OPM PAT EPS ROE P/E P/BVEV/EBITDAEV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 2,462 10.6 89 5.9 10.2 12.4 1.2 3.1 0.3

FY2015E 2,731 10.6 101 6.7 10.5 10.9 1.1 3.0 0.3

IVRCL (CMP: `11/ TP: Under Review)

For 1QFY2014, IVRCL ltd (IVRCL) reported disappointing set of numbers on the

operating front, which were significantly below our and consensus estimates. The

company reported revenue of `1,007cr in 1QFY2014, registering a decline of

16.7% yoy which was significantly below our estimate by 19.4%. On the operating

margins, the company posted Abysmal margins of 4.6%, a decline of

568bp/437bp on yoy/qoq basis and was significantly below our estimates of

8.2%. This was mainly on account of (a) lower-than-expected execution and (b)

increase in subcontracting expense (up 46% yoy) and raw material expense (up

19% yoy) during the quarter. Interest cost came in at `128cr in 1QFY2014, a

decline of 7.1% yoy. On earnings front, IVRCL reported loss of `88cr (our estimate

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was a loss of `3cr) against a loss of `6cr in 5QFY2012. This was mainly on back

of lower-than-expected operational performance and high interest cost. Currently,the Target price and rating is under review. We shall revise our estimates postearnings conference call with the management.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 5,673 8.1 44 1.4 2.0 7.8 0.2 6.1 0.5

FY2015E 5,892 8.4 56 1.8 2.6 6.1 0.2 5.9 0.5

CCCL (CMP: `7/ TP: -/ Upside: -)

CCCL posted a dismal set of numbers once again for the quarter. Lower-than-

expected performance at both revenue and EBITDAM front along with high interest

cost led to loss for the quarter. On the top-line front, CCCL revenues decline by

37.2% yoy to `303cr in 1QFY2014 and was lower than our estimate of `458cr.

The major disappointment continues on the margin front, as the company posted

abysmal EBITDA margin of 0.5% against our expectations of 1.5%. The main

reason for decline in margins was lower-than-expected execution, increase in cost

pressures, rise in employee cost and labour cost. Further, on the bottom-line front

the company posted a loss of `30cr vs a loss of `16cr in 1QFY2013 and against

our expectations of a loss of `15cr, mainly on account of (a) dismal revenue

performance, (b) a fall in margin and (c) higher interest cost (`29cr, a jump of

11% yoy). CCCL secured order worth ~`114cr in 1QFY2014, taking its

outstanding order book to `3,256cr. The company has disappointed on the

earnings front and posted erratic margins since the last few quarters. Hence,wemaintain our Neutral view on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 1,715 2.4 (54) (2.9) (10.6) (2.4) 0.3 21.2 0.5

FY2015E 1,824 6.2 (7) (0.4) (1.4) (19.4) 0.3 7.9 0.5

Cravatex (CMP: `270/ TP: -/ Upside: -)

Cravatex reported disappointing set of standalone numbers for 1QFY2014. Top-

line plunged by 37.1% yoy to `35cr. Net sales from International segment fell

significantly by 42% yoy while domestic segment dip by 2.9% yoy. On the

operating front the EBITDA dip by 33.6% yoy to `3.6cr due to poor top-line

performance. However the EBITDA margins expanded by 72bp yoy mainly on

account of 41.4% lower raw material cost. On the segmental front, the EBIT

margin for the domestic segment were stable at 5.3% while for the international

segment margins expanded by 90 bps yoy to 17.9%. The company reported a

bottom-line of `0.8cr, low by 72.9% yoy on account of higher interest outgo by

45.4% yoy. The company, since is yet to declare its consolidated numbers the stockis till then under review.

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Result Preview

SAIL (CMP: `44/ TP:-/ Upside :-)

SAIL is expected to announce its 1QFY2014 results today. We expect the

companys top line to decline by 1.8% yoy to `10,452cr due to lower realizations.

We expect EBITDA margin to contract by 591bp yoy to 8.3% on account of higher

staff costs and other expenses. The bottom line is expected to fall by 49.0% yoy to

`486cr. We maintain our Neutral rating on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 54,786 9.8 2,410 5.5 5.5 7.9 0.4 5.8 0.6

FY2015E 64,505 11.8 2,289 7.5 7.1 5.9 0.4 4.2 0.5

LIC Housing (CMP:`

178/ TP:-/ Upside: -)

LIC Housing is expected to announce its 1QFY2014 results today. NII is expected

to increase by 25.7% yoy to `476cr, while non-interest income is expected to come

in at `24cr, an increase of 13.6% yoy. Operating expenses are expected to

increase by 31% yoy to `68cr, while Provisioning expenses are expected to come in

at `19cr.Overall, we expect PAT to increase by 32.1% yoy to `301cr. Werecommend a Neutral rating on the stock.Y/E Op. Inc NIM PAT EPS ABV ROA ROE P/E P/ABVMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 2,180 2.4 1,330 26.3 144.9 1.5 19.0 6.7 1.2

FY2015E 2,732 2.5 1,622 32.1 168.5 1.5 19.9 5.5 1.0

Nalco (CMP: `27/ TP: -/ Upside: -)

Nalco is slated to report its 1QFY2014 results today. We expect net sales to

increase by 4.7% yoy to `1,798cr. EBITDA margin is expected to improve by

226bp yoy to 20.0% due to lower costs. Net profit is expected to increase by

10.0% yoy to `245cr. We recommend Neutral on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BVEV/EBITDAEV/SalesMarch (`cr) (%) ` cr) (`) (%) (x) (x) (x) (x)FY2014E 7,656 13.1 658 2.6 5.4 10.6 0.6 2.6 0.3

FY2015E 7,988 13.5 675 2.6 5.5 10.3 0.6 2.7 0.4

Simplex Infrastructures (CMP: `54/ TP: -/ Upside: -)

Simplex Infrastructures is expected to continue its subdued performance on the

revenue front, as we expect the company to report a decline in revenue of 4.5%

yoy to `1,514cr, for 1QFY2014. This is mainly due to its slow moving order book.

We expect the EBITDA margin to fall by 27bp to 9.4%. The bottom-line is expected

to be under pressure due to increase in interest cost (expected to jump 16.7% yoy)and lower-than-expected revenue growth, resulting in a yoy decline of 51.3% to

`14cr for the quarter. We maintain a Neutral on the stock.

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Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 6,296 9.4 70 14.1 5.2 3.8 0.2 5.0 0.5

FY2015E 7,020 9.6 105 21.3 7.5 2.5 0.2 4.5 0.4

Quarterly Bloomberg Consensus Estimate

Essar Oil (14/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 22,681 19,993 13.4 23,534 (3.6)

EBITDA 986 360 173.9 1,322 (25.4)

EBITDA margin (%) 4.3 1.8 5.6

Net profit 52 (1,400) (103.7) 200 (74.0)

HDIL Consolidated (14/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 244 198 23.2 140 74.3

EBITDA 140 290 (51.7) 262 (46.6)

EBITDA margin (%) 57.4 146.5 187.1

Net profit 81 105 (22.9) (280) (128.9)

LIC Housing Finance (14/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net profit 294 228 28.9 316 (7.0)

SAIL (14/08/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 10,745 10,641 1.0 12,163 (11.7)

EBITDA 911 1,515 (39.9) 894 1.9

EBITDA margin (%) 8.5 14.2 7.4

Net profit 339 696 (51.3) 447 (24.2)

Economic and Political News

Economists expect CAD to be between 4.25-4.55% of GDP in FY2014 Government allows 13 companies to raise `48,000cr via tax-free bonds Rubber production drops 32.4% in July House panel for early revision of Indo-Mauritius tax treaty Maharashtra needs `3,000cr to bridge gaps in school infrastructure

Corporate News

NMDC's Legacy Iron cancels AUD25mn rights issue IDBI Bank puts Deccan Chronicle's newspaper titles on the block Bosch to launch ABS for two-wheelers in CY2014 Coal India modifies FSA to allow third party to test quality

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

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Date Company

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

August 29, 2013 Mphasis

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Time Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

August 14, 2013 2:00PM UK Jobless claims change % Change Jul (21.20) (15.00)

11:30AM Germany GDP nsa (YoY) % Change 2Q P (1.40) 0.70

12:00PM India Monthly Wholesale Prices YoY% % Change Jul 4.86 5.00

2:30PM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 2Q A (0.30) 0.20

6:00PM US Producer Price Index (mom) % Change Jul 0.80 0.30

August 15, 2013 6:00PM US Initial Jobless claims Thousands Aug 10 333.00 335.00

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

6:45PM US Industrial Production % Jul 0.31 0.25

August 16, 2013 6:00PM US Housing Starts Thousands Jul 836.00 902.00

6:00PM US Building permits Thousands Jul 918.00 945.00

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

August 21, 2013 7:30PM US Existing home sales Million Jul 5.08 5.10

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

1:00PM Germany PMI Manufacturing Value Aug A 50.70 --

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

7:30PM US New home sales Thousands Jul 497.00 490.00

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

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

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

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

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

September 1, 2013 6:30AM China PMI Manufacturing Value Aug 50.30 --

September 2, 2013 2:00PM UK PMI Manufacturing Value Aug 54.60 --

September 5, 2013 4:30PM UK BOE Announces rates % Ratio Sep 5 0.50 0.50

5:15PM Euro Zone ECB announces interest rates % Sep 5 0.50 --

September 6, 2013 2:00PM UK Industrial Production (YoY) % Change Jul 1.20 --

6:00PM US Change in Nonfarm payrolls Thousands Aug 162.00 --

6:00PM US Unnemployment rate % Aug 7.40 --September 8, 2013 4:29PM China Exports YoY% % Change Aug 5.10 --

September 9, 2013 7:00AM China Consumer Price Index (YoY) % Change Aug 2.70 --

September 10, 2013 4:29PM India Imports YoY% % Change Aug (6.20) --

4:29PM India Exports YoY% % Change Aug 11.64 --

11:00AM China Industrial Production (YoY) % Change Aug 9.70 --


August 14, 2013

Market Outlook

7/27/2019 Market Outlook, 14-08-2013

10/18



Macro watch

Exhibit 1:Quarterly GDP trends

Source: CSO, Angel Research

Exhibit 2:IIP trends

Source: MOSPI, Angel Research

Exhibit 3:Monthly WPI inflation trends

Source: MOSPI, Angel Research

Exhibit 4:Manufacturing and services PMI

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

Exhibit 5:Exports and imports growth trends


Exhibit 6:Key policy rates

Source: RBI, Angel Research

9.3

7.7

11.4

9.5

8.69.2

9.9

7.5

6.56.0

5.1 5.4 5.24.7 4.8

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

(%)

(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

Ju

l-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

(%)

8.0 8.17.3 7.2 7.3 7.3 7.3

5.7

4.8 4.7 4.9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

(%)

46.0

48.0

50.0

52.0

54.0

56.0

58.0

60.0

May-1

2

Jun-1

2

Ju

l-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

Ju

l-13

Mfg. PMI Services PMI

(15.0)

0.0

15.0

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

Ju

l-13

Exports yoy growth Imports yoy growth(%)

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Aug-1

2

Sep-1

2

Oct-12

Oct-12

Nov-1

2

Dec-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Fe

b-1

3

Mar-

13

Apr-

13

Apr-

13

May-1

3

Jun-1

3

Jun-1

3

Ju

l-13

Aug-1

3

Repo rate Reverse Repo rate CRR (%)

7/27/2019 Market Outlook, 14-08-2013

11/18

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 144 - 2,809 1,674 1,923 13.7 13.7 6.8 7.6 21.2 19.0 4.0 3.5 20.0 19.6 1.8 1.6

United Phosphorus Buy 148 225 6,551 10,091 11,302 16.5 16.5 19.2 22.5 7.7 6.6 1.2 1.1 17.0 17.2 0.8 0.6

Auto & Auto Ancillary

Amara Raja Batteries Accumulate 256 285 4,379 3,418 3,892 14.5 14.5 18.5 20.4 13.9 12.6 3.3 2.7 26.6 23.8 1.3 1.1

Apollo Tyres Neutral 66 - 3,301 13,409 15,106 11.8 11.6 13.1 15.4 5.0 4.3 0.8 0.7 17.9 17.8 0.4 0.3

Ashok Leyland Buy 13 18 3,549 13,450 15,853 6.5 8.5 0.4 1.9 34.9 7.2 1.2 1.1 2.3 11.0 0.4 0.3

Automotive Axle# Neutral 196 - 296 834 965 9.3 10.6 17.3 27.1 11.3 7.2 1.1 1.0 9.5 14.0 0.4 0.4Bajaj Auto Accumulate 1,859 2,102 53,806 21,696 25,239 19.2 19.3 119.3 140.2 15.6 13.3 5.5 4.4 38.9 36.6 2.1 1.7

Bharat Forge Neutral 231 - 5,379 6,198 6,793 14.6 14.9 14.5 17.3 15.9 13.4 2.1 1.9 13.6 14.7 1.0 0.9

Bosch India* Accumulate 8,545 9,096 26,829 9,301 10,895 16.8 18.0 339.9 423.1 25.1 20.2 4.2 3.6 16.6 17.6 2.5 2.1

CEAT Buy 119 170 407 5,159 5,628 9.3 9.0 43.5 48.6 2.7 2.4 0.5 0.4 18.4 17.5 0.2 0.2

Exide Industries Accumulate 130 148 11,059 6,899 7 ,873 14.7 14.7 7.9 9.0 16.4 14.4 2.8 2.4 18.3 18.0 1.3 1.1

FAG Bearings* Neutral 1,150 - 1,911 1,336 1,572 13.8 16.0 75.6 102.4 15.2 11.2 1.9 1.7 13.4 15.8 1.2 1.0

Hero Motocorp Accumulate 1,942 2,048 38,771 25,562 28,297 14.5 14.4 111.2 146.3 17.5 13.3 6.4 5.0 40.1 42.1 1.3 1.1

JK Tyre Buy 92 154 379 7,972 8,754 7.1 7.1 37.5 44.0 2.5 2.1 0.4 0.3 16.4 16.6 0.3 0.3

Mahindra and Mahindra Buy 871 1,103 53,638 43,371 49,049 12.3 12.5 63.6 72.5 13.7 12.0 2.9 2.5 23.3 22.2 0.9 0.8

Maruti Buy 1,398 1,648 42,216 45,862 52,647 11.2 11.1 94.6 109.9 14.8 12.7 2.0 1.8 14.4 14.6 0.7 0.6

Motherson Sumi Accumulate 228 242 13,407 28,442 31,914 8.4 8.7 13.0 16.1 17.6 14.1 4.6 3.6 29.4 28.6 0.6 0.5

Subros Accumulate 20 23 122 1,230 1,398 10.5 10.5 2.3 3.8 8.8 5.4 0.4 0.4 4.8 7.6 0.3 0.3

Tata Motors Buy 291 355 78,438 215,043 240,077 13.5 13.7 38.7 44.1 7.5 6.6 1.9 1.5 28.5 25.1 0.4 0.4

TVS Motor Accumulate 32 36 1,523 7,659 8,528 6.0 6.2 4.9 5.9 6.6 5.4 1.1 1.0 17.8 19.0 0.1 0.1

Capital Goods

ABB* Reduce 494 442 10,465 8,037 9,087 5.8 6.9 12.2 17.0 40.5 29.1 3.9 3.7 9.8 13.1 1.3 1.1BGR Energy Neutral 100 - 724 3,541 4,041 11.8 10.7 21.1 22.9 4.8 4.4 0.6 0.5 21.8 19.5 0.5 0.4

BHEL Neutral 121 - 29,591 43,140 39,692 16.8 15.9 20.2 17.1 6.0 7.1 1.3 1.2 23.1 17.2 0.5 0.6

Blue Star Buy 143 208 1,283 2,941 3,099 3.4 4.2 6.0 9.3 23.9 15.4 3.0 2.6 12.9 18.0 0.6 0.5

Crompton Greaves Buy 89 103 5,732 13,446 15,272 6.7 7.6 6.6 8.9 13.5 10.1 1.5 1.3 11.4 14.0 0.5 0.5

Jyoti Structures Neutral 17 - 140 3,312 3,555 9.0 9.0 4.5 6.5 3.8 2.6 0.2 0.2 5.6 7.7 0.3 0.3

KEC International Buy 25 36 640 7,709 8,399 6.2 6.9 5.1 8.1 4.9 3.1 0.5 0.5 16.6 21.5 0.3 0.2

Thermax Neutral 582 - 6,934 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 1,161 1,361 21,790 11,581 13,009 17.6 19.3 63.9 81.5 18.2 14.2 2.7 2.5 15.6 18.2 1.6 1.4


Market Outlook

Stock Watch

August 14, 2013

7/27/2019 Market Outlook, 14-08-2013

12/18



Cement

Ambuja Cements Neutral 174 - 26,916 9,975 11,409 22.4 23.1 9.4 11.1 18.6 15.7 2.8 2.6 15.7 17.2 2.2 1.8

India Cements Neutral 45 - 1,395 4,929 5,434 17.4 17.1 8.9 10.9 5.1 4.2 0.4 0.4 7.7 9.1 0.6 0.5

J K Lakshmi Cement Buy 64 79 750 2,235 2,684 19.4 21.4 15.0 18.4 4.2 3.5 0.5 0.5 13.2 14.3 0.5 0.9

Madras Cements Neutral 170 - 4,050 4,010 4,524 23.5 23.4 14.9 18.3 11.5 9.3 1.5 1.3 14.0 15.2 1.6 1.4

Shree Cement^ Neutral 3,950 - 13,762 6,607 7,520 27.5 26.7 322.8 374.3 12.2 10.6 3.0 2.4 27.8 25.6 1.4 1.1

UltraTech Cement Neutral 1,699 - 46,576 22,021 25,274 22.0 21.6 99.5 113.3 17.1 15.0 2.7 2.3 16.7 16.6 2.1 1.9

ConstructionAshoka Buildcon Accumulate 53 60 841 1,912 2,131 21.0 21.5 5.0 5.5 10.6 9.7 0.8 0.7 8.8 7.6 1.7 1.8

Consolidated Co Neutral 7 - 129 1,715 1,824 2.4 6.2 (2.9) (0.4) (2.4) (19.4) 0.3 0.3 0.5 0.5

IRB Infra Buy 73 106 2,435 3,805 4,248 45.1 45.3 15.0 15.8 4.9 4.7 0.7 0.6 14.5 13.9 2.9 3.1

ITNL Buy 127 156 2,459 7,423 7,970 27.5 28.7 30.3 32.0 4.2 4.0 0.6 0.5 15.0 14.0 2.4 2.5

IVRCL Infra Neutral 11 - 348 5,673 5,892 8.1 8.4 1.4 1.8 7.9 6.2 0.2 0.2 2.0 2.6 0.5 0.5

Jaiprakash Asso. Buy 33 41 7,312 12,946 14,897 24.7 25.6 1.2 2.7 26.8 12.3 0.5 0.5 2.0 4.3 2.4 2.2

Larsen & Toubro Buy 804 1,002 74,381 68,946 78,040 10.0 10.0 49.0 55.2 16.4 14.6 2.3 2.1 14.9 15.3 1.2 1.1

Nagarjuna Const. Buy 21 30 540 6,167 6,945 8.0 8.2 2.7 3.6 7.9 5.8 0.2 0.2 2.7 3.6 0.4 0.4

Punj Lloyd Neutral 26 - 860 12,726 14,226 8.2 8.2 0.9 1.0 30.2 25.3 0.3 0.3 1.0 1.2 0.6 0.6

Sadbhav Engg. Buy 72 100 1,089 2,462 2,731 10.6 10.6 5.9 6.7 12.2 10.8 1.2 1.1 10.2 10.5 0.7 0.7

Simplex Infra Neutral 54 - 269 6,308 7,033 9.5 9.6 11.9 18.7 4.6 2.9 0.2 0.2 4.5 6.7 0.5 0.5

Unity Infra Neutral 20 - 151 2,146 2,339 12.9 13.0 9.3 9.6 2.2 2.1 0.2 0.2 8.0 7.7 0.7 0.7

Financials

Allahabad Bank Neutral 74 - 3,703 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 Reduce 60 51 3,343 4,868 5,390 2.4 2.5 12.3 16.6 4.9 3.6 0.5 0.4 7.9 10.0 - -

Axis Bank Accumulate 1,144 1,255 53,653 19,280 22,886 3.3 3.3 130.7 157.1 8.8 7.3 1.4 1.2 17.3 18.1 - -Bank of Baroda Neutral 520 - 21,907 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 180 - 10,705 14,482 16,069 2.3 2.2 55.0 62.2 3.3 2.9 0.5 0.4 13.7 13.9 - -

Bank of Maharashtra Neutral 40 - 2,639 4,529 4,780 3.0 2.8 12.3 11.8 3.2 3.4 0.5 0.5 16.5 14.1 - -

Canara Bank Neutral 250 - 11,066 11,454 12,378 2.0 2.0 52.4 60.5 4.8 4.1 0.5 0.5 9.8 10.4 - -

Central Bank Neutral 57 - 6,001 8,196 9,202 2.4 2.4 6.1 15.9 9.5 3.6 0.7 0.6 5.2 12.8 - -

Corporation Bank Neutral 279 - 4,259 5,641 6,083 2.0 2.0 82.7 98.1 3.4 2.8 0.4 0.4 12.6 13.5 - -

Dena Bank Neutral 48 - 1,672 3,307 3,531 2.2 2.4 17.5 21.6 2.7 2.2 0.3 0.3 11.9 13.2 - -

Federal Bank Neutral 342 - 5,841 2,798 3,250 3.0 3.0 38.1 51.9 9.0 6.6 0.9 0.8 9.8 12.3 - -


Market Outlook

Stock Watch

August 14, 2013

7/27/2019 Market Outlook, 14-08-2013

13/18



Financials

HDFC Neutral 792 - 123,059 8,679 10,350 3.6 3.6 37.5 44.7 21.1 17.7 4.4 3.9 30.1 30.7 - -

HDFC Bank Buy 620 745 148,140 27,392 33,264 4.6 4.6 36.3 45.1 17.1 13.8 3.5 2.9 21.9 22.8 - -

ICICI Bank Buy 893 1,038 103,089 25,727 29,969 3.2 3.2 83.2 96.7 10.7 9.2 1.4 1.3 14.9 15.4 - -

IDBI Bank Neutral 61 - 8,090 9,518 10,468 2.0 2.0 15.5 22.1 3.9 2.8 0.4 0.4 10.2 13.3 - -

Indian Bank Neutral 71 - 3,034 5,940 6,396 2.7 2.7 24.9 32.9 2.8 2.2 0.3 0.3 10.3 12.4 - -

IOB Neutral 41 - 3,780 7,692 8,627 2.2 2.3 8.1 15.2 5.1 2.7 0.3 0.3 5.9 10.5 - -

J & K Bank Neutral 1,050 - 5,089 3,038 3,370 3.7 3.9 214.2 202.6 4.9 5.2 0.9 0.8 19.8 16.3 - -LIC Housing Finance Neutral 178 - 8,973 2,180 2,732 2.4 2.5 26.3 32.1 6.8 5.5 1.2 1.1 19.0 19.9 - -

Oriental Bank Neutral 144 - 4,209 6,918 7,459 2.6 2.5 46.7 52.5 3.1 2.8 0.4 0.3 10.8 11.1 - -

Punjab Natl.Bank Neutral 540 - 19,075 20,766 23,515 3.4 3.4 135.0 164.8 4.0 3.3 0.6 0.5 14.4 15.7 - -

South Ind.Bank Neutral 21 - 2,781 1,800 2,023 2.7 2.7 3.7 4.2 5.6 5.0 0.9 0.8 16.2 16.2 - -

St Bk of India Neutral 1,621 - 110,861 66,417 76,734 3.0 3.0 227.4 284.8 7.1 5.7 1.0 0.9 15.4 17.1 - -

Syndicate Bank Neutral 71 - 4,256 6,740 7,512 2.5 2.5 21.0 23.5 3.4 3.0 0.4 0.4 12.6 12.8 - -

UCO Bank Neutral 57 - 4,294 6,770 7,017 2.8 2.6 14.8 15.5 3.9 3.7 0.7 0.5 14.4 13.5 - -

Union Bank Neutral 120 - 7,188 10,458 11,809 2.5 2.5 32.0 40.6 3.8 3.0 0.5 0.4 11.6 13.4 - -

United Bank Neutral 36 - 1,330 3,386 3,884 2.3 2.5 12.4 20.0 2.9 1.8 0.3 0.3 10.0 14.7 - -

Vijaya Bank Neutral 38 - 1,886 2,718 2,941 1.8 1.9 7.0 9.0 5.4 4.3 0.5 0.4 8.2 9.8 - -

Yes Bank Neutral 309 - 11,133 4,417 5,486 2.7 2.8 42.9 49.5 7.2 6.2 1.6 1.3 23.9 22.8 - -

FMCG

Asian Paints Neutral 440 - 42,229 12,332 14,524 16.3 16.1 13.9 16.0 31.7 27.5 10.1 8.0 35.2 32.5 3.3 2.8

Britannia Neutral 746 - 8,942 6,417 7,502 6.1 6.3 21.3 25.5 35.1 29.3 11.4 9.1 35.7 34.6 1.4 1.2

Colgate Neutral 1,353 - 18,396 3,588 4,130 18.9 19.4 41.2 48.4 32.9 28.0 29.2 22.6 100.0 91.0 5.0 4.3

Dabur India Neutral 172 - 30,052 7,183 8,297 16.8 16.9 5.4 6.3 32.2 27.4 11.3 9.0 39.2 36.7 4.2 3.6

GlaxoSmith Con* Neutral 4,019 - 16,903 3,617 4,259 16.1 16.4 122.2 148.7 32.9 27.0 10.2 8.2 34.1 33.7 4.2 3.5

Godrej Consumer Neutral 895 - 30,458 7,801 9,017 16.2 15.9 25.1 29.7 35.6 30.2 7.7 6.4 24.9 24.2 4.0 3.4

HUL Neutral 621 - 134,358 28,415 31,962 13.6 14.1 16.7 18.2 37.3 34.2 35.8 26.0 112.2 88.1 4.6 4.1

ITC Neutral 334 - 264,283 34,294 39,991 36.8 37.0 11.3 13.3 29.6 25.1 9.8 7.9 36.1 34.9 7.4 6.3

Marico Neutral 212 - 13,661 5,273 6,044 14.8 14.9 7.3 8.7 29.2 24.5 5.7 4.7 21.4 21.0 2.6 2.3

Nestle* Neutral 5,087 - 49,043 9,330 10,860 21.8 21.9 123.3 149.7 41.3 34.0 20.3 14.8 56.4 50.3 5.3 4.5

Tata Global Neutral 147 - 9,063 8,069 8,957 9.8 9.7 7.8 8.6 18.7 17.1 2.2 2.2 9.5 9.7 1.1 1.0


Market Outlook

Stock Watch

August 14, 2013

7/27/2019 Market Outlook, 14-08-2013

14/18



IT

HCL Tech^ Accumulate 940 1,012 65,527 30,698 33,933 22.1 21.5 65.3 69.8 14.4 13.5 3.7 3.0 26.5 23.0 1.9 1.6

Hexaware* Neutral 123 - 3,669 2,213 2,479 21.5 20.5 12.1 12.9 10.1 9.5 2.5 2.2 25.4 23.5 1.5 1.3

Infosys Reduce 3,085 2,820 177,146 47,001 51,196 26.2 26.4 171.3 189.4 18.0 16.3 3.7 3.2 20.4 19.3 3.1 2.7

Infotech Enterprises Accumulate 178 190 1,985 2,052 2,263 17.2 17.6 20.7 22.5 8.6 7.9 1.3 1.1 14.9 14.0 0.6 0.5

KPIT Cummins Neutral 139 - 2,688 2,670 3,018 17.3 16.7 14.1 15.3 9.9 9.1 1.9 1.5 20.9 18.4 1.0 0.8

Mindtree Neutral 1,001 - 4,159 2,768 3,006 19.7 19.9 103.1 105.3 9.7 9.5 2.3 1.9 24.8 20.3 1.2 1.0

Mphasis& Neutral 400 - 8,398 6,372 6,852 18.0 18.2 38.0 43.5 10.5 9.2 1.5 1.3 14.3 14.2 0.8 0.7NIIT Sell 18 15 297 1,144 1,267 9.0 9.1 4.3 5.4 4.2 3.4 0.4 0.4 10.3 12.0 0.1 -

Persistent Accumulate 529 568 2,116 1,533 1,715 22.2 22.5 49.2 56.8 10.7 9.3 1.8 1.5 16.4 16.1 1.0 0.8

TCS Accumulate 1,819 2,060 355,989 79,005 91,576 29.7 30.0 88.6 103.1 20.5 17.6 6.5 5.2 31.5 29.2 4.3 3.6

Tech Mahindra Neutral 1,329 - 30,876 8,102 8,709 19.7 19.2 107.5 117.0 12.4 11.4 2.6 2.2 21.2 18.9 3.8 3.5

Wipro Reduce 467 435 115,041 42,196 45,890 21.0 21.6 28.3 31.2 16.5 15.0 3.5 2.9 20.7 19.4 2.3 1.9

Media

D B Corp Buy 252 302 4,614 1,783 1,968 25.2 26.8 14.6 17.2 17.3 14.6 4.5 3.8 23.9 24.2 2.5 2.2

HT Media Buy 97 117 2,274 2,205 2,380 15.1 15.6 8.3 9.3 11.7 10.5 1.4 1.3 11.6 11.6 0.7 0.5

Jagran Prakashan Buy 88 116 2,932 1,683 1,845 22.3 23.7 6.5 7.8 13.5 11.4 2.8 2.5 21.3 23.1 1.8 1.7

PVR Neutral 356 - 1,412 1,359 1,540 17.3 17.4 17.2 21.6 20.6 16.5 2.1 1.9 10.3 12.0 1.5 1.3

Sun TV Network Neutral 425 - 16,758 2,287 2,551 69.7 70.5 20.0 23.3 21.3 18.3 5.3 4.6 26.4 27.3 7.0 6.1

Metals & Mining

Bhushan Steel Neutral 461 - 10,438 13,794 17,088 30.9 33.5 49.3 66.6 9.4 6.9 1.0 0.9 11.3 13.5 2.4 1.9

Coal India Neutral 268 - 169,563 70,158 74,443 29.8 30.2 25.2 27.1 10.7 9.9 2.6 2.2 33.3 33.1 1.6 1.4

Electrosteel Castings Accumulate 12 13 381 1,976 2,017 11.8 12.7 1.3 2.6 9.2 4.5 0.1 - 2.6 5.2 0.5 0.1

GMDC Buy 95 115 3,016 1,701 1,985 47.8 48.8 17.4 20.6 5.5 4.6 1.1 0.9 20.7 20.9 1.3 1.0Hind. Zinc Buy 104 120 43,859 12,389 13,093 48.5 51.7 15.2 17.0 6.8 6.1 1.2 1.0 18.5 18.0 1.4 0.9

Hindalco Neutral 91 - 17,509 89,352 93,672 8.8 9.2 13.4 15.0 6.8 6.1 0.5 0.5 7.3 7.6 0.5 0.5

JSW Steel Neutral 519 - 12,538 44,605 47,040 15.7 16.0 62.5 75.6 8.3 6.9 0.7 0.6 8.5 9.6 0.8 0.7

MOIL Accumulate 202 223 3,390 956 982 42.3 44.3 25.3 26.2 8.0 7.7 1.1 1.0 14.6 13.7 0.9 1.0

Monnet Ispat Buy 101 125 643 2,326 2,709 21.4 23.1 33.3 43.1 3.0 2.3 0.2 0.2 8.3 9.9 1.3 1.0

Nalco Neutral 27 - 7,036 7,656 7,988 13.1 13.5 2.6 2.6 10.7 10.4 0.6 0.6 5.5 5.5 0.4 0.4

NMDC Accumulate 109 123 43,096 10,718 11,514 66.6 64.5 15.5 16.1 7.0 6.8 1.4 1.3 21.2 20.0 1.9 1.8

SAIL Neutral 44 - 18,317 44,060 54,786 9.4 11.5 5.2 7.2 8.5 6.2 0.4 0.4 5.2 6.8 0.7 0.6


Market Outlook

Stock Watch

August 14, 2013

7/27/2019 Market Outlook, 14-08-2013

15/18



Metals & Mining

Sesa Goa Accumulate 136 155 11,815 3,817 5,781 12.1 17.7 27.0 29.6 5.0 4.6 0.6 0.5 12.9 12.5 3.9 2.6

Sterlite Inds Buy 79 92 26,667 44,493 45,599 22.4 23.9 16.8 19.2 4.7 4.1 0.5 0.4 10.5 10.9 0.5 0.5

Tata Steel Accumulate 241 260 23,421 140,917 151,537 9.7 10.8 30.9 47.6 7.8 5.1 0.7 0.6 9.6 13.4 0.5 0.5

Sarda Accumulate 88 98 315 1,323 1,398 17.2 17.9 25.3 27.8 3.5 3.2 0.3 0.3 9.5 9.6 0.6 0.5

Prakash Industries Buy 30 37 397 2,486 2,637 15.2 15.0 13.7 14.2 2.2 2.1 0.2 0.2 9.1 8.7 0.4 0.3

Godawari Power andIspat

Accumulate 71 78 233 2,171 2,317 14.9 15.8 36.4 46.6 2.0 1.5 0.2 0.2 11.6 13.0 0.5 0.4

Oil & Gas

Cairn India Buy 298 364 56,960 18,403 17,925 71.9 62.1 62.1 57.4 4.8 5.2 1.0 0.9 22.6 17.8 1.9 1.6

GAIL Neutral 307 - 38,980 49,700 48,822 16.0 16.6 32.9 33.4 9.4 9.2 1.4 1.3 15.9 14.4 0.3 0.2

ONGC Buy 275 352 235,233 169,963 196,050 35.3 36.6 33.4 38.7 8.2 7.1 1.4 1.2 17.7 18.2 1.1 0.8

Reliance Industries Neutral 852 - 275,271 397,546 421,695 8.9 8.7 72.3 76.8 11.8 11.1 1.2 1.1 12.3 11.8 0.7 0.6

Gujarat Gas* Neutral 226 - 2,902 3,270 3,414 12.8 12.6 22.6 23.1 10.0 9.8 2.7 2.4 28.2 25.6 0.7 0.6

Indraprastha Gas Neutral 272 - 3,809 3,656 4,456 21.5 18.6 25.7 26.8 10.6 10.2 2.2 1.9 22.1 19.6 1.1 0.8

Petronet LNG Accumulate 124 135 9,270 39,449 43,315 5.3 5.9 14.1 16.9 8.8 7.3 1.8 1.5 21.7 21.9 0.3 0.3

Gujarat State PetronetLtd.

Buy 55 64 3,070 1,171 1,287 91.9 91.9 10.1 11.3 5.4 4.8 0.9 0.8 17.3 16.8 2.1 1.7

Pharmaceuticals

Alembic Pharma Neutral 161 - 3,031 1,736 2,008 17.1 18.9 10.7 13.9 15.0 11.6 4.7 3.5 35.0 34.7 1.8 1.5

Aurobindo Pharma Buy 187 281 5,446 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 2,505 - 5,769 1,682 1,917 15.6 15.6 91.9 101.7 27.3 24.6 3.8 3.8 15.6 17.1 2.9 2.4

Cadila Healthcare Buy 676 894 13,845 7,123 8,367 15.5 15.7 37.3 44.7 18.1 15.1 3.8 3.2 22.9 22.9 2.3 1.9

Cipla Accumulate 424 477 34,012 9,274 10,796 23.1 23.1 21.0 23.8 20.2 17.8 3.2 2.8 17.2 16.8 3.4 2.8

Dr Reddy's Accumulate 2,240 2,535 38,074 13,377 15,350 20.4 20.1 112.1 126.6 20.0 17.7 4.3 3.5 23.5 21.8 2.9 2.5

Dishman Pharma Buy 48 73 390 1,394 1,534 22.5 22.4 14.8 16.6 3.3 2.9 0.3 0.3 10.8 11.0 0.9 0.8

GSK Pharma* Neutral 2,275 - 19,269 2,744 2,964 22.0 23.4 59.2 66.6 38.4 34.2 9.6 9.2 24.9 27.5 6.2 5.7

Indoco Remedies Buy 65 78 594 747 906 15.3 15.3 5.9 7.6 10.9 8.5 1.3 1.2 12.5 14.4 1.0 0.9

Ipca labs Neutral 655 - 8,260 3,246 3,830 20.5 21.7 36.2 44.9 18.1 14.6 4.2 3.4 26.1 25.7 2.7 2.3

Lupin Accumulate 839 904 37,562 11,576 13,855 22.0 22.0 35.8 43.0 23.4 19.5 5.7 4.5 27.1 25.8 3.3 2.8

Ranbaxy* Accumulate 398 426 16,849 10,400 11,331 6.6 8.4 11.4 15.2 34.9 26.2 3.7 3.2 11.1 13.1 1.7 1.5

Sun Pharma Neutral 547 - 113,372 13,509 15,846 41.0 41.0 16.5 19.9 33.2 27.5 6.7 5.5 22.0 22.0 7.8 6.5

Power

GIPCL Accumulate 57 65 859 1,444 1,482 33.4 33.0 13.7 14.8 4.2 3.8 0.5 0.4 12.3 12.0 0.7 0.4

NTPC Accumulate 144 163 118,611 75,046 81,780 23.5 23.9 12.7 13.6 11.3 10.6 1.3 1.2 12.2 12.0 2.3 2.2


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Stock Watch

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Real Estate

DLF Buy 150 175 26,636 8,293 9,622 36.5 36.1 5.7 6.7 26.2 22.2 0.9 0.9 3.7 4.1 5.3 4.4

MLIFE Accumulate 441 483 1,800 888 1,002 27.0 29.9 33.9 42.1 13.0 10.5 1.3 1.2 9.9 11.2 2.6 2.3

Telecom

Bharti Airtel Neutral 346 - 138,470 83,535 92,173 32.0 33.1 9.2 12.9 37.7 26.8 2.5 2.3 6.8 8.9 2.4 2.1

Idea Cellular Neutral 169 - 56,043 25,640 28,459 26.9 27.2 4.0 4.9 42.2 34.2 3.6 3.2 8.4 9.4 2.6 2.3

Rcom Neutral 132 - 27,214 22,751 24,628 30.9 31.3 3.4 5.3 38.5 25.0 0.8 0.8 2.1 3.1 2.8 2.4

OthersAbbott India* Buy 1,361 1,659 2,892 1,863 2,081 11.8 12.4 71.2 83.0 19.1 16.4 3.8 3.3 21.6 21.5 1.3 1.0

Bajaj Electricals Accumulate 162 184 1,615 3,885 4,472 4.0 5.8 6.8 15.4 24.0 10.5 2.1 1.8 8.8 17.3 0.4 0.4

Cera Sanitaryware Buy 509 613 644 631 797 14.5 13.7 42.6 51.1 12.0 10.0 2.8 2.3 26.5 25.3 1.0 0.8

Cravatex Buy 270 459 70 248 284 6.5 7.3 27.2 38.2 10.0 7.1 1.6 1.3 15.7 18.5 0.4 0.4

Finolex Cables Buy 54 68 828 2,563 2,899 9.8 9.8 10.1 11.3 5.4 4.8 0.8 0.7 14.3 13.8 0.2 0.2

Force Motors Buy 282 349 368 2,304 2,649 3.1 3.6 28.0 43.7 10.1 6.5 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 108 153 294 1,080 1,199 8.9 9.1 18.3 19.1 5.9 5.7 1.0 0.9 19.2 17.0 0.4 0.3

Honeywell Automation* Neutral 2,337 - 2,066 1,842 2,131 7.7 7.8 111.1 130.9 21.0 17.9 2.7 2.3 13.3 13.9 1.0 0.9

IFB Agro Accumulate 144 156 129 491 642 12.3 13.8 35.0 50.9 4.1 2.8 0.7 0.6 18.2 21.6 0.2 0.1

ITD Cementation Buy 158 194 182 1,365 1,502 10.9 11.2 18.2 28.0 8.7 5.6 0.4 0.4 5.1 7.4 0.6 0.5

Jyothy Laboratories Buy 168 199 2,797 1,244 1,523 14.1 14.2 5.9 10.0 28.4 16.9 3.4 3.0 12.7 18.8 2.6 2.0

MRF Accumulate 14,137 16,218 5,995 11,799 12,587 14.1 13.5 1,792.0 1,802.0 7.9 7.8 1.7 1.4 23.5 19.2 0.7 0.6

Page Industries Accumulate 4,336 4,669 4,836 1,059 1,296 19.5 19.8 125.0 155.6 34.7 27.9 17.2 12.6 56.3 52.2 4.7 3.8

Relaxo Footwears Buy 739 981 887 1,196 1,401 11.9 12.6 55.6 75.4 13.3 9.8 3.2 2.4 27.1 28.1 0.9 0.7

Siyaram Silk Mills Accumulate 202 228 189 1,158 1,322 10.6 11.0 60.5 75.9 3.3 2.7 0.5 0.4 16.8 18.1 0.4 0.3Styrolution ABS India* Buy 356 492 626 1,007 1,108 8.4 8.7 30.3 35.1 11.8 10.1 1.3 1.2 11.7 12.2 0.6 0.5

TAJ GVK Buy 56 108 353 300 319 35.8 36.2 7.9 9.1 7.1 6.2 0.9 0.9 13.9 14.4 1.5 1.2

Tata Sponge Iron Buy 255 371 393 814 849 17.0 17.6 64.6 69.2 4.0 3.7 0.5 0.5 14.5 13.8 0.1 (0.1)

TTK Healthcare Accumulate 549 632 427 416 481 4.5 6.1 16.2 25.3 33.9 21.7 4.2 3.7 12.6 18.1 0.9 0.8

Tree House Accumulate 261 297 939 153 194 53.0 52.8 12.4 15.6 21.1 16.7 2.5 2.2 11.8 13.1 6.3 4.8

TVS Srichakra Buy 167 230 128 1,591 1,720 6.1 6.4 30.5 38.3 5.5 4.4 0.7 0.6 13.5 15.5 0.3 0.2

United Spirits Neutral 2,368 - 34,416 12,294 14,162 12.0 12.0 42.1 67.7 56.3 35.0 4.0 3.6 9.1 10.7 3.1 2.7

Vesuvius India* Buy 355 439 721 600 638 20.1 19.4 35.7 36.6 10.0 9.7 1.8 1.6 19.4 17.1 1.0 0.9


Market Outlook

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August 14, 2013

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Others

HSIL Buy 85 117 562 2,042 2,363 14.6 14.8 12.3 16.5 6.9 5.2 0.5 0.5 7.6 9.4 0.7 0.6

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 13, 2013


Market Outlook

Stock Watch

August 14, 2013

7/27/2019 Market Outlook, 14-08-2013

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

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