market outlook, 22-07-2013

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Market OutlookJuly 22, 2013

Dealers Diary

Indian markets are expected to open flat today tracking flat opening in SGX Nifty

and mixed opening in Asian markets.

US markets posted a mixed performance on Friday as poor earnings of techcorporations such as Microsoft and Google resulted in a 0.7% decline in the

Nasdaq index. However, Dow Jones and S&P 500 indices ended the day flat.

Mixed performance on Friday followed the healthy gains posted by the markets

earlier in the week aided by upbeat economic data and comments by Federal

Reserve Chief that there is no 'preset' timetable for rolling back bond purchases

and that the central bank intends to maintain highly accommodative policy for

the foreseeable future. The European markets ended Friday's session with

modest losses, due to the weak performance of US technologystocks.

Meanwhile, Indian markets remained flat on Friday as weakness in banking

stocks offset the sharp gains by IT stocks post strong results announced by TCS.

Markets Today

The trend deciding level for the day is 20,173/ 6,039 levels. If NIFTY trades above

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

up to 20,234 20,318 / 6,057 6,085 levels. However, if NIFTY trades below

20,173 / 6,039 levels for the first half-an-hour of trade then it may correct up to

20,088 20,027/ 6,011 5,992 levels.

Indices S2 S1 PIVOT R1 R2SENSEX 20,027 20,088 20,173 20,234 20,318

NIFTY 5,992 6,011 6,039 6,057 6,085

News Analysis

Nine Pharmaceutical companies under NPPA scanner Result Review: Reliance Industries, HDFC, Bajaj Auto, Hindustan Zinc, Federal

Bank, Uco Bank, Hexaware, Siyaram Silk Mills Result Preview: L&T, Asian Paints

Refer detailed news analysis on the following page

Net Inflows (July 18, 2013)

` cr Purch Sales Net MTD YTDFII 3,204 3,318 (114) (6,005) 65,301

MFs 507 810 (303) (1,034) (13,211)

FII Derivatives (July 19, 2013)` cr Purch Sales Net Open InterestIndex Futures 2,404 1,893 511 15,547

Stock Futures 2,556 2,951 (395) 29,268

Gainers / Losers

Gainers LosersCompany Price (`) chg (%) Company Price (`) chg (%)MMTC 53 5.0 BHEL 174 (8.0)

TCS 1,742 4.9 Financial Tech 631 (7.2)

HCL Tech 893 4.0 Wockhardt 889 (6.4)

Bajaj Auto 1,967 3.7 Uco Bank 69 (5.6)Tech Mahindra 1,131 3.6 Gitanjali Gems 110 (5.0)

Domestic Indices Chg (%) (Pts) (Close)BSE Sensex 0.1 21 20,150

Nifty (0.1) (9) 6,029

MID CAP (0.6) (35) 5,993

SMALL CAP (0.6) (32) 5,706

BSE HC (1.0) (94) 9,346

BSE PSU (0.2) (11) 5,945

BANKEX (1.8) (236) 12,543

AUTO 1.7 174 10,687

METAL (0.8) (59) 7,478

OIL & GAS 0.7 61 9,161

BSE IT 2.8 194 7,097

Global Indices Chg (%) (Pts) (Close)Dow Jones (0.0) (5) 15,544NASDAQ (0.7) (24) 3,588

FTSE (0.1) (4) 6,631

Nikkei (1.5) (219) 14,590

Hang Sang 0.1 17 21,362

Straits Times (0.2) (5) 3,213

Shanghai Com (1.5) (31) 1,993

Indian ADR Chg (%) (Pts) (Close)INFY 0.3 0.1 $47.7

WIT (0.2) (0.0) $8.0IBN (1.5) (0.5) $35.8

HDB (0.2) (0.1) $37.8

Advances / Declines BSE NSEAdvances 1,009 506

Declines 1,331 814

Unchanged 147 77

Volumes (` cr)BSE 1,929

NSE 12,330

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Nine Pharmaceutical companies under NPPA scannerNine drug makers, including Ranbaxy, Dr Reddys Labs, Glenmark, Cipla and

Cadila Health, are likely to face a hefty penalty from the National Pharmaceutical

Pricing Authority (NPPA) over allegedly selling anti-asthma

drug Doxofylline without prior price approval. The move comes in the wake of a

recent Supreme Court order against the industry that brought the widely prescribed

medicine under price control. The total penalty on the nine firms is estimated to be

Rs 2,500cr because the fine will be calculated in retrospect from 2009, when the

price of the drug was fixed by NPPA. According to official sources, NPPA has

already sent notices to four drug companies Ranbaxy, Cipla, Cadila and

Glenmark for allegedly overcharging on sale of their individual brands

containing Doxofylline.

Doxofylline, a bulk drug, is a derivative product of theophylline. While NPPA

brought theophylline under price control in 2006, firms evaded regulation by

launching Doxofylline as an alternative around 2008. However, in 2009, NPPA

imposed a price cap on Doxofylline as well. This prompted a few drug firms sellingthe medicine to take legal recourse against the regulators order. However, the

apex court held earlier this month that Doxofylline was a bulk drug the price of

which was to be fixed by the Centre. While the exact penalty for individual

companies is not know, it would not have a major bearing on the individual

companies so much as most of the companies are sitting on a comfortable Debt

on the books. But it terms of impact the ones which will be impacted most would

be Ranbaxy and Cadila , amongst the coverage. We maintain our ratings on thestock.Result Review

Reliance Industries (CMP:`923, TP: -, Upside :-)

Reliance Industries (RIL) 1QFY2014 net profit was in line with our estimate. RILs

net sales declined by 4.6% yoy to `87,645cr, above our estimate of `82,561cr.

Net sales decline was mainly led by lower Oil and Gas segment sales (-42.0% yoy

to`1,454cr) and Refining segment sales (-4.6% yoy to`81,458cr). Gas production

from KG D6 block declined by 52.9% yoy to 15mmscmd. Gross refining margins

(GRMs) stood at US$8.4/bbl in 1QFY2014 (US$7.6/bbl in 1QFY2013 and

US$10.1/bbl in 4QFY2013). Despite lower net sales, RILs EBITDA increased by

4.9% yoy to `7,075cr on account of higher profits from Refining and

Petrochemical segments. Refining segment EBIT grew by 38.5% yoy to`

2,951crand Petrochemical segment EBIT grew by 7.5% yoy to`1,888cr. However, Oil and

Gas segment EBIT decreased 63.8% yoy to `352cr. Other income increased33.1% yoy to`2,535cr which led to net profit growing by 8.9% yoy to `5,352cr in

line with our estimate of`5,392cr. We maintain 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 380,031 8.9 23,390 71.5 11.8 11.3 1.1 6.8 0.6

FY2015E 407,721 9.9 26,266 80.3 11.9 10.0 1.0 5.5 0.5

HDFC (CMP:`

804 / TP:`

904 / Upside: 12.5%)HDFC reported standalone earnings growth of 17% yoy for the quarter, which was

lower than our expectations, primarily on account of nil profit on sale of

investments reported by the company vs. our expectation of around Rs70cr.

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Healthy loan book growth and stability witnessed on the spreads as well as on the

asset quality front, were the key highlights from the results. NII for the company

grew at 17% yoy (marginally lower than healthy advance growth of 19% yoy). As

the company reported nil profit on sale on investments during the quarter, non-

interest income came in at mere Rs8cr as compared to Rs117 in last quarter and

Rs28cr in 1QFY2013. Operating income and pre-provisioning profit grew ataround 15% yoy. Provisioning expenses for the company declined 25% yoy to

Rs30cr. Overall, the company reported standalone earnings growth of 17% yoy.

Given the challenging macro developments, we believe within the BFSI space,

defensive names like HDFC may not underperform the rest of the sector in spite of

its rich valuations. At CMP, HDFCs core business (after adjusting Rs311/share

towards the value of its subsidiaries) is trading at 3.4x FY2015E ABV. Werecommend an Accumulate rating on the stock, with a target price of `904.Y/E Op. Inc NIM PAT EPS ABV ROA ROE P/E P/ABVMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 8,928 3.6 5,877 38.4 177.3 1.0 32.5 22.2 4.8

FY2015E 10,684 3.6 6,939 45.3 200.4 1.0 32.4 18.8 4.3

Bajaj Auto (CMP:`1,967/ TP:`2,096/ Upside: 7%)

Bajaj Autos (BJAUT) 1QFY2014 results were broadly in-line with our expectations

and were driven by a strong growth of 9.7% yoy (18% qoq) in exports revenue. The

results exceeded expectations by a wide margin after adjusting for a notional loss

of`96cr related to the forward exchange rate contracts.

For 1QFY2014, the top-line grew by 0.9% yoy (3.5% qoq) to `4,911cr led by a

strong growth of 12.4% yoy (3.6% qoq) in net average realization. The net average

realization benefitted from favorable rates on the forex hedges and also due to

price hikes taken since 1HFY2013. Total volumes however, declined by 9.2% yoy

(flat qoq) on account of slowdown in domestic motorcycle demand. While exports

revenue in USD terms declined by ~3% yoy; INR depreciation versus the USD led

to a strong growth of 9.7% yoy (18% qoq) in INR terms. On the operating front,

EBITDA margins improved 55bp yoy (84bp qoq) to 18.5% which was in-line with

our estimate of 18.4%. Margin expansion was driven by better realization on the

exports front and also due to softening of commodity prices. While raw-material

expenditure as a percentage of sales declined 273bp yoy (245bp qoq), other

expenditure as a percentage of sales surged 170bp yoy (140bp qoq), primarily onaccount of a notional loss of `96cr related to outstanding forward rate options.

Adjusted for the notional loss, EBITDA margins exceeded expectations and came in

at 20.4%. Net profit for the quarter stood at `738cr (up 2.7% yoy) and was

broadly in-line with our estimates of `726cr. Going ahead, we would seek clarity

from the Management on its outlook for the exports markets and also the demand

scenario in the domestic motorcycle market. At the current market price of`1,967,

the stock is trading at 14.1x FY2015E earnings. Currently we have an Accumulaterating on the stock with a target price of `2,096.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 23,005 18.0 3,438 118.8 40.4 16.6 6.0 11.1 2.0

FY2015E 26,460 18.5 4,042 139.7 37.7 14.1 4.7 9.0 1.6

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Hindustan Zinc (CMP: 104/ TP: Under review/ Upside: -)

Hindustan Zincs (HZL) 1QFY2014 results were in line with our expectations. HZLs

net revenue increased by 8.4% yoy to `2,939cr (in line with our estimate of

`2,916cr) mainly due to increased sales volumes of zinc and silver. Refined zinc

production volumes increased 10.0% yoy to 173kt and refined silver productionvolumes grew 31.0% yoy to 96kt due to higher production from Sindesur Khurd

mine and new Dariba lead and silver capacities. EBITDA margin contracted by

153bp yoy to 51.1% mainly on account of 2.0% yoy increase in cost of production

to`46,765/tonne. Cost of production increased primarily due to lower sulphuric

acid credits and higher excavation costs, partially offset by lower coal price, lower

specific coal consumption and benefits of higher volume. Mining royalty as a

percentage to sales increased to 8.6% compared to 7.5% in 1QFY2013 while

other operating income also increased by 27.7% yoy to `45cr. Hence, EBITDA

increased by 5.2% yoy to `1,503cr. Adjusted net profit grew by 5.0% yoy to

`1,661cr (in line with our estimate of `1,617cr). We maintain our Buy rating onthe stock while keep our target price under review.Y/E Sales OPM PAT EPS ROE P/E P/BVEV/EBITDA EV/SalesMarch (`cr) (%) (`cr) (`) (%) (x) (x) (x) (x)FY2014E 12,198 46.6 6,159 14.6 17.8 7.1 1.2 3.0 1.4

FY2015E 12,994 51.6 7,120 16.9 17.9 6.2 1.0 1.8 1.0

Federal Bank(CMP: `381 / TP: - / Upside: - )

Federal Bank announced a weak set of numbers. On the operating front, Net

Interest Income (NII) grew marginally by 3.7% yoy to `510cr. But non-interest

income grew strong by 73.6% yoy at`216cr, primarily boosted by treasury gains.

Operating expenses of the bank grew by 20.6% yoy to `325cr. Thus backed by

non-interest income, pre provisioning profit grew by healthy 15.6% at `401cr.

Provisioning expense came in 290% yoy higher at`245cr, which resulted in 44.5%

yoy earnings de-growth. On the asset quality front gross and net NPA levels went

down sequentially by 4.6% and 13.5% respectively. We await further clarity from

the management regarding the asset quality performance and the sharp increase

in provisioning expenses during the quarter. At the CMP, the stock trades at a

valuation of 0.9x FY2014E ABV and 0.8x FY2015E. We maintain our Neutralrecommendation on the stock.Y/E Op. Inc NIM PAT EPS ABV ROA ROE P/E P/ABVMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 2,802 2.9 851 410.5 9.5 1.1 12.7 7.6 0.9

FY2015E 3,275 2.9 968 454.9 10.5 1.1 13.1 6.7 0.8

UCO Bank (CMP:`69 / TP:`63 / Downside: -8.9%)

UCO Bank announced modest set of numbers. On the operating front, the bank

reported strong Net Interest Income (NII) growth of 30.7% yoy to`1,364cr.Non-

interest income grew to`462cr, registering growth of 98.4%.Operating expensesof the bank grew moderate by 13.3% yoy at `562cr, thus enabling bank to

achieve pre-provision operating profit growth of 62.0% yoy at `1,264cr. Asset

quality concerns for the bank continued even in this quarter. Gross NPA ratio at

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increased by 16bp to reach 5.58%, while net NPA ratio was at 3.15% in spite of

81.3% higher provisioning of`741cr in this quarter. At the CMP, the stock trades

at a valuation of 0.9x FY2014E ABV and 0.8x FY2015E. We maintain our Reducerecommendation on the stock.Y/E Op. Inc NIM PAT EPS ABV ROA ROE P/E P/ABVMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 6,545 2.7 1,283 14.8 80.2 0.6 14.3 5.0 0.9

FY2015E 6,859 2.6 1,354 15.7 97.2 0.6 13.6 4.7 0.8

Hexaware (CMP:`107/ TP: Under review)

For 2QCY2013, Hexaware reported broadly in-line set of results on the revenue

front but exceeded expectations on the operating margin as well as on the bottom-

line front. The USD revenue came in at US$94.8mn, up 0.8% qoq, aided by

volume growth of 1.5% qoq. In INR terms, revenue came in at`537cr, up 5.7%.

The companys EBITDA margin grew by ~440bp qoq to 23.7% on account of

operational efficiency. PAT stood tall at`98cr, up 23.5% qoq, aided by gains due

to strong operation performance. Management has given 3QCY2013 revenue

guidance of US$98.1-100mn implying a qoq growth of 3.5-5.5%, which is higher

than our expectation. Strong margin performance during the quarter coupled with

better than expected guidance for next quarter would result in upgrade of our

estimates of CY2013. Overall a strong set of results and we continue to remain

positive on the stock with target price currently under review.

Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)CY2013E 2,158 19.6 323 10.7 23.0 9.9 2.2 6.5 1.3

CY2014E 2,374 19.8 353 11.7 22.3 9.1 2.0 5.7 1.1

Siyaram Silk Mills (CMP:`242/ TP:`311/ Upside: 28%)

For 1QFY2014, Siyaram Silk Mills (SSM) reported numbers mixed set of numbers.

The company's top line grew substantially by 22.1% yoy to`251cr for the quarter,

9.5% above with our estimate of`229cr. However, the company disappointed on

the operating margin front. On yoy basis, the operating margin dipped by 88bpand came in at 10.3% for the quarter against our estimate of 11.2% mainly due to

higher than expected raw material cost as a per cent of net sales and higher

employee cost. Interest outgo for the quarter was `7cr, in-line with our estimate;

however, depreciation cost for the quarter stood at `7cr, higher than our estimate

of `5cr. Tax for the quarter stood at `5cr against our estimate of `7cr.

Consequently, the company reported a bottomline of `11cr, 4.1% higher yoy,

against our estimate of`10cr.

The company is on expansion mode and plans to add 50 looms and 100 garment

machines in FY2014E. Also, the company has signed 27 franchise agreements in

the first two months of FY2014 out of targeted 90 for the full year forstrengthening and improving brand visibility. At CMP of`242, the stock is trading

at a PE of 3.1x FY2015E earnings. We maintain our Buy recommendation on the

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stock with a revised target price of `311 based on a target P/E of 4.0x forFY2015E.Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 1,158 10.8 58 62.1 17.2 3.9 0.6 0.4 3.9FY2015E 1,322 11.2 73 77.8 18.4 3.1 0.5 0.4 3.3

Result Preview

L&T (CMP:`975/TP:`1,180 /Upside: 21%)

For 1QFY2014, owing to a large order book (~`1.54trillion) and robust order

inflows in the past couple of quarters, we expect Larsen & Toubro (L&T) to record a

revenue of`13,100cr, indicating a growth of 9.6% yoy. On the EBITDA front, we

expect the company's margin to witness an expansion of 141bp yoy to 10.5%. We

project the net profit to come in at`911cr for 1QFY2014, registering a growth of1.6% yoy. We estimate the company's order inflow to be at ~`30,000cr for the

quarter, which is in-line with the Management's guidance of 20% growth in order

book for the full year.

At the CMP, the stock is trading at 16.6x FY2015E earnings and 2.5x FY2015E

P/BV, on a standalone basis. We have used the sum-of-the-parts (SOTP)

methodology to value the company to capture all its business initiatives and

investments/stakes in the different businesses. Ascribing separate values to its

parent business on a P/E basis and investments in subsidiaries on P/E, P/BV and

mcap basis, our target price works out to`1,180. We continue to recommend Buyrating on the stock.Y/E Sales OPM PAT EPS ROE P/E P/BVEV/EBITDA EV/SalesMarch (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)FY2014E 68,396 10.5 4,768 51.7 15.6 18.9 2.8 9.4 1.0

FY2015E 77,435 10.5 5,408 58.6 16.0 16.6 2.5 8.4 0.9

Asian Paints (CMP:`5,164/TP:-/Upside:-)

Asian Paints is expected to declare its 1QFY2014 results today. We expect the top-

line to grow by 11.7% yoy to`2,836cr. OPM is expected to decline by 134bp yoy

to 15.9%. Bottom-line is expected to remain flat at `290cr. We maintain ourNeutral recommendation 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 12,332 16.5 1,353 141.1 35.6 36.6 11.8 23.6 3.9

FY2015E 14,524 16.3 1,559 162.5 32.7 31.8 9.3 20.1 3.3

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Quarterly Bloomberg Consensus Estimate

Asian Paints Consolidated (22/07/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 2,836 2,539 11.7 2,714 4.5

EBITDA 492 447 10.1 393 25.1EBITDA margin (%) 17.3 17.6 14.5

Net profit 310 288 7.6 251 23.6

Larsen & Toubro (22/07/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 13,487 11,955 12.8 20,294 (33.5)

EBITDA 1,280 1,087 17.8 2,451 (47.8)

EBITDA margin (%) 9.5 9.1 12.1

Net profit 922 864 6.7 1,769 (47.9)

Shriram Transport Finance Company (23/07/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net profit 370 322 14.8 355 4.0

Ambuja Cement (24/07/2013)Particulars (` cr) 2QCY13E 2QCY12 y-o-y (%) 1QCY13 q-o-q (%)Net sales 2,429 2,566 (5.3) 2,545 (4.5)

EBITDA 540 735 (26.5) 553 (2.3)

EBITDA margin (%) 22.2 28.6 21.7

Net profit 348 469 (25.8) 488 (28.7)

Dabur India Consolidated (24/07/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 1,659 1,462 13.5 1,531 8.4

EBITDA 253 216 17.3 273 (7.3)

EBITDA margin (%) 15.3 14.8 17.8

Net profit 187 149 25.1 201 (6.8)

Hero Moto Corp (24/07/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 6,270 6,208 1.0 6,073 3.3

EBITDA 823 937 (12.1) 850 (3.1)

EBITDA margin (%) 13.1 15.1 14.0

Net profit 551 616 (10.6) 574 (4.1)

United Phosphorous Consolidated (24/07/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net sales 2,537 2,180 16.4 2,773 (8.5)

EBITDA 452 386 17.0 537 (15.9)

EBITDA margin (%) 17.8 17.7 19.4

Net profit221 203 8.7 278 (20.8)

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Yes Bank Ltd (24/07/2013)Particulars (` cr) 1QFY14E 1QFY13 y-o-y (%) 4QFY13 q-o-q (%)Net profit 372 290 28.3 362 2.8

Economic and Political News

India will sell`23,600cr in debt quotas to foreign investors Gas output to jump 66% by 2016-17: Moily More FDI reforms, bank licences on anvil: PM Growth target of 6.5% looks difficult: PM

Corporate News

NTPC power trading arm to supply 300 MW electricity to Kerala VA Tech bags`344cr order from Philippines LIC Housing Finance plans to raise`28,000cr in current fiscal RIL's $1.5bn gas field development plan approved: Moily Govt slaps show-cause notices on 27 more coal block allottees

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

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Date Company

July 22, 2013 Larsen & Toubro, Asian Paints, Blue Star

July 23, 2013 Shriram Trans., KPIT Cummins, Tata Sponge

July 24, 2013 Cairn India, Hero Motocorp, Ambuja Cements, Dabur India, Yes Bank, United Phosphorus, Central Bank

July 25, 2013 ITC, GAIL, Sterlite Inds, Maruti, ACC, IOB, Thermax, FAG Bearings, MRF, TTK Healthcare

July 26, 2013 Wipro, Nestle, Punjab Natl.Bank, Tata Comm, CESC

July 27, 2013 Corporation Bank, Force Motors

July 28, 2013

July 29, 2013 UltraTech Cement, IDFC, Colgate, Godrej Consumer, Madras Cements, Subros, Vesuvius India

July 30, 2013 NTPC, Dr Reddy's, Petronet LNG, Syndicate Bank, Ipca labs, Indoco Remedies

July 31, 2013 Bharti Airtel, ICICI Bank, NHPC, JSW Steel , Dishman Pharma

August 01, 2013 Idea Cellular, Mundra Port, Adani Power, GlaxoSmith Con

August 02, 2013 Siemens

August 03, 2013 Coal India, PTC India

August 04, 2013

August 05, 2013 Tata Chemicals, LMW, GIPCL

August 06, 2013 Tata Power Co.

August 07, 2013 Ranbaxy, Apollo Tyres

August 08, 2013 Adani Enterp., Rural Elec.Corp.

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Time Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

July 22, 2013 7:30PM US Existing home sales Million Jun 5.18 5.24

July 23, 2013 7:30PM Euro Zone Euro-Zone Consumer Confidence Value Jul A (18.80) --July 24, 2013 1:00PM Germany PMI Services Value Jul A 50.40 --

1:00PM Germany PMI Manufacturing Value Jul A 48.60 --

7:30PM US New home sales Thousands Jun 476.00 484.00

July 25, 2013 2:00PM UK GDP (YoY) % Change 2Q A 0.30 --

July 30, 2013 11:00AM India RBI Repo rate % Jul 30 7.25 --

11:00AM India RBI Cash Reserve ratio % Jul 30 4.00 --

11:00AM India RBI Reverse Repo rate % Jul 30 6.25 --

7:30PM US Consumer Confidence S.A./ 1985=100 Jul 81.40 --

July 31, 2013 1:25PM Germany Unemployment change (000's) Thousands Jul (12.00) --

6:00PM US GDP Qoq (Annualised) % Change 2Q A 1.80 --

11:30PM US FOMC rate decision % Jul 31 0.25 --

August 1, 2013 6:30AM China PMI Manufacturing Value Jul 50.10 --

2:00PM UK PMI Manufacturing Value Jul 52.50 --

4:30PM UK BOE Announces rates % Ratio Aug 1 0.50 0.50

5:15PM Euro Zone ECB announces interest rates % Aug 1 0.50 --

August 2, 2013 6:00PM US Change in Nonfarm payrolls Thousands Jul 195.00 --

6:00PM US Unnemployment rate % Jul 7.60 --

August 6, 2013 2:00PM UK Industrial Production (YoY) % Change Jun (2.30) --

August 8, 2013 4:29PM China Exports YoY% % Change Jul (3.10) --


July 22, 2013

Market Outlook

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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

(%)

(2.0)

(0.1)

2.0

(0.7)

8.4

(1.0) (0.6)

2.5

0.6

3.4

1.9

(1.6)(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

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

(%)

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

(%)

48.0

50.0

52.0

54.0

56.0

58.0

Mar-

12

Apr-

12

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

Mfg. PMI Services PMI

(15.0)

0.0

15.0

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

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

Nov-1

2

Dec-1

2

Jan-1

3

Feb-1

3

Mar-13

Apr-13

May-1

3

Jun-1

3

Jul-13

Repo rate Reverse Repo rate CRR (%)

7/28/2019 Market Outlook, 22-07-2013

11/17

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 152 - 2,956 1,657 1,906 14.1 14.1 7.7 8.9 19.7 17.1 4.1 3.5 22.2 21.9 1.7 1.5

United Phosphorus Buy 147 232 6,509 10,298 11,310 16.5 16.5 20.5 23.2 7.2 6.3 1.2 1.0 18.0 17.4 0.6 0.5

Auto & Auto Ancillary

Amara Raja Batteries Accumulate 248 285 4,238 3,418 3,892 14.5 14.5 18.5 20.4 13.4 12.2 3.2 2.6 26.6 23.8 1.3 1.1

Apollo Tyres Neutral 71 - 3,556 13,852 15,487 11.4 11.5 12.8 14.9 5.5 4.7 0.9 0.8 17.5 17.3 0.4 0.4

Ashok Leyland Buy 15 22 4,058 13,450 15,853 6.5 8.5 0.4 1.9 39.9 8.2 1.3 1.2 2.3 11.0 0.4 0.3

Automotive Axle# Neutral 199 - 301 834 965 9.3 10.6 17.3 27.1 11.5 7.4 1.1 1.0 9.5 14.0 0.4 0.4Bajaj Auto Accumulate 1,967 2,096 56,920 23,005 26,460 18.0 18.5 118.8 139.7 16.6 14.1 6.0 4.7 40.4 37.7 2.1 1.7

Bharat Forge Neutral 223 - 5,183 6,198 6,793 14.6 14.9 14.5 17.3 15.3 12.9 2.0 1.8 13.6 14.7 1.0 0.8

Bosch India* Accumulate 8,673 9,213 27,231 9,821 11,394 17.0 17.3 373.5 438.7 23.2 19.8 4.2 3.5 18.0 17.9 2.5 2.1

CEAT Buy 117 170 400 5,325 5,974 8.4 8.3 40.8 48.5 2.9 2.4 0.5 0.4 17.3 17.6 0.2 0.2

Exide Industries Accumulate 135 148 11,441 6,899 7,873 14.7 14.7 7.9 9.0 17.0 14.9 2.9 2.5 18.3 18.0 1.3 1.1

FAG Bearings* Neutral 1,444 - 2,399 1,525 1,742 14.5 15.7 88.4 109.5 16.3 13.2 2.4 2.0 15.5 16.5 1.4 1.2

Hero Motocorp Neutral 1,772 - 35,388 25,298 27,665 14.1 13.7 110.3 140.0 16.1 12.7 5.9 4.6 39.9 40.7 1.2 1.0

JK Tyre Buy 104 154 426 7,972 8,754 7.1 7.1 37.5 44.0 2.8 2.4 0.4 0.4 16.4 16.6 0.3 0.3

Mahindra and Mahindra Buy 878 1,103 54,103 45,254 51,197 11.4 11.7 61.2 70.2 14.4 12.5 3.0 2.5 22.7 21.9 0.9 0.8

Maruti Buy 1,450 1,822 43,811 47,923 55,002 11.2 10.9 106.6 121.4 13.6 11.9 2.0 1.8 16.1 15.8 0.7 0.6

Motherson Sumi Neutral 222 - 13,021 28,442 31,493 7.5 7.8 12.5 14.8 17.7 15.0 4.4 3.5 27.5 25.8 0.6 0.5

Subros Buy 21 27 128 1,426 1,624 10.0 9.9 4.9 6.8 4.4 3.1 0.4 0.4 10.0 12.7 0.4 0.3

Tata Motors Buy 295 347 79,395 215,016 237,404 13.3 13.6 36.2 41.5 8.1 7.1 1.8 1.5 24.6 23.2 0.4 0.4

TVS Motor Accumulate 32 35 1,532 7,715 8,584 6.0 6.1 5.0 5.8 6.5 5.6 1.1 1.0 18.1 18.5 0.1 0.1

Capital Goods

ABB* Sell 581 461 12,315 8,073 9,052 5.5 6.9 11.5 16.9 50.4 34.3 4.6 4.4 9.3 13.1 1.5 1.3BGR Energy Buy 119 140 857 3,756 4,569 11.4 9.7 21.7 24.1 5.5 4.9 0.7 0.6 22.3 20.3 0.5 0.5

BHEL Neutral 174 - 42,527 44,054 39,326 16.8 15.1 20.6 16.1 8.4 10.8 1.8 1.7 23.5 16.1 0.8 0.9

Blue Star Buy 155 230 1,392 2,896 3,087 5.6 6.2 9.3 11.7 16.6 13.2 2.7 2.4 17.6 19.2 0.5 0.5

Crompton Greaves Buy 88 117 5,629 13,446 15,272 6.7 7.6 6.6 8.9 13.2 9.9 1.5 1.3 11.4 14.0 0.5 0.5

Jyoti Structures Neutral 19 - 159 3,360 3,597 9.7 9.8 7.3 10.2 2.6 1.9 0.5 0.5 8.8 11.4 0.3 0.3

KEC International Buy 34 49 883 7,709 8,399 6.7 7.2 6.1 8.5 5.7 4.0 0.7 0.6 20.2 23.0 0.3 0.3

Thermax Neutral 603 - 7,179 5,780 6,430 9.5 9.6 29.8 33.0 20.2 18.3 3.4 3.0 17.9 17.4 1.1 0.9

Cement

ACC Accumulate 1,276 1,361 23,964 11,820 13,254 19.3 20.9 74.9 93.1 17.1 13.7 3.0 2.7 18.1 20.3 1.7 1.5


Market Outlook

Stock Watch

July 22, 2013

7/28/2019 Market Outlook, 22-07-2013

12/17



Cement

Ambuja Cements Neutral 208 - 32,053 10,171 11,762 23.5 24.6 10.2 12.2 20.4 17.0 3.3 3.0 17.1 18.7 2.6 2.2

India Cements Neutral 57 - 1,762 4,929 5,434 17.4 17.1 8.9 10.9 6.4 5.3 0.5 0.5 7.7 9.1 0.7 0.6

J K Lakshmi Cement Buy 76 143 900 2,247 2,742 21.0 23.1 17.8 21.8 4.3 3.5 0.6 0.5 15.5 16.4 0.3 0.8

Madras Cements Neutral 200 - 4,753 4,234 4,788 23.9 24.0 18.5 22.8 10.8 8.8 1.7 1.5 17.2 18.2 1.5 1.2

Shree Cement^ Neutral 4,436 - 15,453 6,607 7,520 27.5 26.7 322.8 374.3 13.7 11.9 3.4 2.7 27.8 25.6 1.7 1.3

UltraTech Cement Neutral 1,934 - 53,015 21,947 25,049 23.8 23.8 106.1 119.8 18.2 16.1 3.0 2.6 17.7 17.3 2.5 2.1

ConstructionAshoka Buildcon Buy 55 84 863 1,928 2,234 21.0 21.5 6.0 7.4 9.1 7.4 0.8 0.8 10.5 10.8 1.8 1.8

Consolidated Co Neutral 9 - 160 1,715 1,824 2.4 6.2 (2.9) (0.4) (3.0) (24.0) 0.3 0.4 0.5 0.5

IRB Infra Buy 94 157 3,118 3,997 4,312 45.5 46.4 15.7 16.6 6.0 5.6 0.9 0.8 15.2 14.5 3.2 3.5

ITNL Buy 145 230 2,810 7,444 8,041 27.4 28.9 29.8 32.1 4.9 4.5 0.7 0.6 14.9 14.2 2.5 2.5

IVRCL Infra Buy 15 29 470 5,673 5,892 8.1 8.4 1.4 1.8 10.6 8.3 0.2 0.2 2.0 2.6 0.5 0.5

Jaiprakash Asso. Buy 50 90 11,007 14,850 15,631 24.9 25.1 2.5 2.9 19.6 17.4 0.8 0.8 4.2 4.7 2.6 2.5

Larsen & Toubro Buy 975 1,180 90,148 68,946 78,040 10.5 10.5 51.7 58.6 18.9 16.6 2.8 2.5 15.5 15.6 1.4 1.3

Nagarjuna Const. Buy 26 42 675 6,167 6,945 8.0 8.2 2.7 3.6 9.8 7.2 0.3 0.3 2.7 3.6 0.5 0.4

Punj Lloyd Neutral 32 - 1,046 12,954 14,740 9.9 9.9 0.5 0.9 62.1 33.8 0.4 0.4 0.6 1.1 0.5 0.5

Sadbhav Engg. Buy 87 139 1,318 2,462 2,731 10.6 10.6 5.9 6.7 14.8 13.1 1.5 1.3 10.2 10.5 0.8 0.8

Simplex Infra Buy 70 131 346 6,308 7,033 9.5 9.6 11.9 18.7 5.9 3.7 0.3 0.2 4.5 6.7 0.5 0.5

Unity Infra Buy 24 41 180 2,146 2,339 13.7 13.8 11.0 11.5 2.2 2.1 0.2 0.2 9.3 9.0 0.6 0.6

Financials

Allahabad Bank Accumulate 85 95 4,230 6,705 7,535 2.5 2.5 27.6 33.2 3.1 2.6 0.4 0.4 12.5 13.6 - -

Andhra Bank Neutral 78 - 4,348 5,180 5,815 2.7 2.7 19.0 22.9 4.1 3.4 0.5 0.5 12.0 13.2 - -

Axis Bank Buy 1,191 1,498 55,838 19,237 23,261 3.2 3.2 133.8 161.5 8.9 7.4 1.5 1.3 17.6 18.5 - -Bank of Baroda Accumulate 570 642 23,999 16,287 18,707 2.2 2.3 120.6 144.6 4.7 3.9 0.7 0.6 15.0 16.0 - -

Bank of India Accumulate 211 236 12,600 14,459 16,176 2.3 2.2 55.2 68.2 3.8 3.1 0.5 0.5 13.7 15.1 - -

Bank of Maharashtra A ccumulate 49 54 3,264 4,291 4,724 3.0 3.0 12.1 12.9 4.1 3.8 0.6 0.6 16.2 15.3 - -

Canara Bank Neutral 319 - 14,127 12,045 13,495 2.1 2.2 76.7 86.4 4.2 3.7 0.6 0.5 14.1 14.2 - -

Central Bank Neutral 63 - 6,597 8,406 9,546 2.5 2.5 12.6 18.7 5.0 3.4 0.6 0.6 10.6 14.3 - -

Corporation Bank Buy 327 379 4,994 5,554 6,156 2.0 2.0 94.9 104.9 3.4 3.1 0.5 0.4 14.3 14.2 - -

Dena Bank Neutral 68 - 2,366 3,255 3,623 2.3 2.4 22.0 24.9 3.1 2.7 0.4 0.4 14.7 14.7 - -

Federal Bank Accumulate 381 409 6,522 2,802 3,275 2.9 2.9 49.8 56.6 7.7 6.7 0.9 0.8 12.7 13.1 - -


Market Outlook

Stock Watch

July 22, 2013

7/28/2019 Market Outlook, 22-07-2013

13/17



Financials

HDFC Accumulate 804 906 124,874 8,679 10,350 3.6 3.6 37.5 44.7 21.4 18.0 4.5 4.0 30.1 30.7 - -

HDFC Bank Accumulate 681 752 162,625 27,560 33,766 4.6 4.6 36.3 45.1 18.8 15.1 3.8 3.2 21.9 22.8 - -

ICICI Bank Buy 959 1,219 110,686 26,119 30,474 3.1 3.2 86.2 99.5 11.1 9.6 1.5 1.4 15.7 16.2 - -

IDBI Bank Neutral 70 - 9,309 9,416 10,392 2.0 2.0 19.8 22.8 3.5 3.1 0.4 0.4 12.9 13.5 - -

Indian Bank Accumulate 107 113 4,616 6,077 6,845 2.9 3.0 35.2 41.0 3.1 2.6 0.4 0.4 14.1 14.8 - -

IOB Neutral 47 - 4,380 8,028 9,204 2.4 2.6 12.5 19.7 3.8 2.4 0.4 0.3 9.1 13.1 - -

J & K Bank Neutral 1,250 - 6,060 3,101 3,427 3.6 3.6 215.5 210.3 5.8 6.0 1.1 1.0 19.9 16.9 - -LIC Housing Finance Buy 209 244 10,522 2,180 2,732 2.4 2.5 26.3 32.1 7.9 6.5 1.4 1.2 19.0 19.9 - -

Oriental Bank Buy 174 203 5,068 6,790 7,676 2.6 2.7 55.7 62.3 3.1 2.8 0.4 0.4 12.8 12.9 - -

Punjab Natl.Bank Accumulate 631 718 22,306 20,914 23,879 3.3 3.4 152.4 176.2 4.1 3.6 0.7 0.6 16.2 16.5 - -

South Ind.Bank Neutral 23 - 3,069 1,800 2,023 2.7 2.7 3.7 4.2 6.2 5.5 1.0 0.9 16.2 16.2 - -

St Bk of India Buy 1,814 2,126 124,091 66,417 76,734 3.0 3.0 227.4 284.8 8.0 6.4 1.2 1.0 15.4 17.1 - -

Syndicate Bank Accumulate 111 121 6,697 7,125 8,188 2.6 2.6 27.4 27.9 4.1 4.0 0.6 0.6 16.2 14.6 - -

UCO Bank Neutral 69 - 5,223 6,545 6,859 2.7 2.6 14.8 15.7 4.7 4.4 0.9 0.7 14.4 13.6 - -

Union Bank Buy 157 186 9,376 11,101 12,543 2.6 2.6 39.3 47.4 4.0 3.3 0.6 0.5 14.1 15.2 - -

United Bank Accumulate 46 51 1,722 3,386 3,884 2.3 2.5 12.4 20.0 3.7 2.3 0.4 0.3 10.0 14.7 - -

Vijaya Bank Accumulate 45 47 2,210 2,714 3,046 1.9 2.0 9.2 10.8 4.8 4.1 0.5 0.5 10.7 11.5 - -

Yes Bank Accumulate 425 453 15,277 4,451 5,526 2.8 2.8 43.0 49.7 9.9 8.5 2.2 1.8 23.9 22.8 - -

FMCG

Asian Paints Neutral 5,164 - 49,535 12,332 14,524 16.5 16.3 141.1 162.5 36.6 31.8 11.8 9.3 35.7 32.7 3.9 3.3

Britannia Neutral 711 - 8,507 6,417 7,502 6.1 6.3 21.3 25.5 33.4 27.9 10.9 8.7 35.7 34.6 1.3 1.1

Colgate Neutral 1,494 - 20,319 3,588 4,130 20.5 20.9 44.2 51.8 33.8 28.9 32.9 24.0 108.6 96.2 5.5 4.7

Dabur India Neutral 168 - 29,276 7,183 8,340 16.8 16.8 5.4 6.3 31.3 26.7 12.2 9.5 41.5 40.1 4.0 3.4

GlaxoSmith Con* Neutral 5,283 - 22,218 3,617 4,259 16.1 16.4 122.2 148.7 43.2 35.5 13.5 10.8 34.1 33.7 5.7 4.7

Godrej Consumer Neutral 953 - 32,418 7,801 9,017 16.2 15.9 25.1 29.7 37.9 32.1 8.2 6.8 24.9 24.2 4.3 3.7

HUL Neutral 687 - 148,475 29,167 33,164 13.6 13.7 17.1 18.4 40.2 37.3 38.6 28.0 113.4 87.0 5.0 4.3

ITC Neutral 369 - 291,730 34,294 39,991 36.8 37.0 11.3 13.3 32.7 27.7 10.8 8.7 36.1 34.9 8.2 7.0

Marico Neutral 219 - 14,151 5,273 6,044 14.8 14.9 7.3 8.7 30.2 25.3 5.9 4.9 21.4 21.0 2.7 2.4

Nestle* Neutral 5,720 - 55,150 9,447 10,968 22.1 22.3 127.5 154.1 44.9 37.1 22.4 16.2 57.7 50.7 5.9 5.0

Tata Global Neutral 156 - 9,628 8,069 8,957 9.8 9.7 7.8 8.6 19.9 18.2 2.4 2.3 9.5 9.7 1.2 1.0


Market Outlook

Stock Watch

July 22, 2013

7/28/2019 Market Outlook, 22-07-2013

14/17



IT

HCL Tech^ Neutral 893 - 62,196 29,424 32,837 22.6 22.0 59.5 63.3 15.0 14.1 3.6 3.0 24.6 21.7 1.9 1.7

Hexaware* Neutral 107 - 3,186 2,158 2,374 19.6 19.8 10.7 11.7 10.0 9.1 2.2 2.0 23.0 22.3 1.3 1.2

Infosys Neutral 2,846 - 163,416 45,153 48,993 27.6 26.8 170.7 187.5 16.7 15.2 3.5 3.0 20.8 19.5 3.0 2.6

Infotech Enterprises Accumulate 178 190 1,987 2,037 2,254 17.9 17.7 21.2 22.6 8.4 7.9 1.3 1.1 15.2 14.1 0.6 0.5

KPIT Cummins Accumulate 130 144 2,517 2,614 2,923 17.2 16.8 13.2 14.4 9.9 9.0 1.8 1.5 18.5 16.7 0.9 0.7

Mindtree Neutral 943 - 3,917 2,707 2,978 20.3 20.2 87.4 97.0 10.8 9.7 2.3 1.9 21.8 19.5 1.2 1.0

Mphasis& Neutral 408 - 8,564 6,372 6,852 18.0 18.2 38.0 43.5 10.7 9.4 1.5 1.3 14.3 14.2 0.9 0.7NIIT Buy 18 30 295 1,144 1,267 9.0 9.1 4.3 5.4 4.2 3.3 0.4 0.4 10.3 12.0 - -

Persistent Accumulate 528 565 2,110 1,505 1,677 25.9 26.2 53.6 59.7 9.8 8.8 1.7 1.5 17.7 16.7 1.0 0.8

TCS Reduce 1,742 1,640 340,928 74,795 84,926 28.8 28.7 82.2 91.5 21.2 19.1 6.5 5.4 30.8 28.1 4.3 3.8

Tech Mahindra Accumulate 1,131 1,250 26,257 8,102 8,709 19.7 19.2 93.7 101.5 12.1 11.1 2.2 1.8 21.2 18.9 3.3 2.9

Wipro Neutral 391 - 96,287 41,659 45,137 21.2 21.4 27.7 29.9 14.1 13.1 2.9 2.5 20.5 19.0 1.8 1.5

Media

D B Corp Accumulate 265 302 4,854 1,783 1,968 25.2 26.8 14.6 17.2 18.2 15.4 4.7 4.0 23.9 24.2 2.6 2.3

HT Media Buy 96 117 2,254 2,205 2,380 15.1 15.6 8.3 9.1 11.6 10.5 1.3 1.1 11.5 11.4 0.7 0.6

Jagran Prakashan Buy 90 107 2,971 1,664 1,825 20.9 23.0 6.4 7.8 13.9 11.5 2.8 2.5 21.0 23.1 1.9 1.7

PVR Neutral 345 - 1,369 1,359 1,540 17.3 17.4 17.2 21.6 20.0 16.0 2.0 1.8 10.3 12.0 1.4 1.3

Sun TV Network Neutral 401 - 15,803 2,287 2,551 69.7 70.5 20.0 23.3 20.0 17.2 5.0 4.3 26.4 27.3 6.6 5.8

Metals & Mining

Bhushan Steel Neutral 464 - 10,507 13,794 17,088 30.9 33.5 49.3 66.6 9.4 7.0 1.0 0.9 11.3 13.5 2.4 1.9

Coal India Buy 296 345 187,122 72,174 76,311 33.3 28.4 28.4 30.9 10.4 9.6 2.9 2.5 37.6 36.2 1.8 1.6

Electrosteel Castings Buy 12 18 405 1,976 2,017 11.8 12.7 1.3 2.6 9.8 4.8 0.1 0.1 2.6 5.2 0.5 0.1

GMDC Buy 104 155 3,309 1,920 2,239 53.2 52.9 21.6 25.0 4.8 4.2 1.1 0.9 25.1 23.8 1.2 0.9Hind. Zinc Buy 104 145 44,028 12,358 13,659 51.4 51.6 16.0 17.6 6.5 5.9 1.2 1.0 19.4 18.4 1.3 0.8

Hindalco Neutral 104 - 19,826 89,352 93,672 8.8 9.2 13.4 15.0 7.7 6.9 0.6 0.5 7.3 7.6 0.6 0.5

JSW Steel Neutral 570 - 13,778 47,613 48,385 17.4 18.8 81.8 109.6 7.0 5.2 0.7 0.7 11.1 13.4 0.6 0.5

MOIL Buy 199 248 3,343 1,010 1,046 46.5 47.6 26.8 28.8 7.4 6.9 1.1 1.0 15.4 14.7 0.9 0.7

Monnet Ispat Buy 120 193 763 2,326 2,709 21.4 23.1 33.3 43.1 3.6 2.8 0.3 0.3 8.3 9.9 1.3 1.0

Nalco Neutral 30 - 7,667 7,656 7,988 13.1 13.5 2.6 2.6 11.7 11.4 0.6 0.6 5.5 5.5 0.4 0.5

NMDC Buy 107 140 42,581 10,610 11,400 66.3 64.2 15.6 16.1 6.9 6.7 1.4 1.3 21.3 19.9 1.9 1.7

SAIL Neutral 45 - 18,544 44,060 54,786 9.4 11.5 5.2 7.2 8.6 6.3 0.5 0.4 5.2 6.8 0.7 0.6


Market Outlook

Stock Watch

July 22, 2013

7/28/2019 Market Outlook, 22-07-2013

15/17



Metals & Mining

Sesa Goa Accumulate 146 166 12,667 3,742 4,426 32.9 32.8 30.0 29.8 4.9 4.9 0.7 0.6 14.3 12.5 4.2 3.4

Sterlite Inds Buy 83 100 27,843 44,462 45,568 23.2 24.7 18.1 20.2 4.6 4.1 0.5 0.4 11.3 11.4 0.6 0.5

Tata Steel Buy 241 378 23,411 140,917 151,537 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 Buy 95 153 339 1,494 1,568 19.1 20.3 31.3 36.5 3.0 2.6 0.3 0.3 11.8 12.4 0.6 0.5

Prakash Industries Buy 30 40 403 2,615 2,776 12.1 12.0 9.8 10.4 3.1 2.9 0.2 0.2 6.5 6.5 0.4 0.4

Godawari Power andIspat

Buy 74 102 244 2,344 2,509 14.9 15.4 38.7 47.0 1.9 1.6 0.2 0.2 12.3 12.9 0.5 0.4

Oil & Gas

Cairn India Accumulate 308 345 58,857 16,482 16,228 69.4 53.3 53.3 49.6 5.8 6.2 0.9 0.8 16.5 13.6 2.2 1.9

GAIL Neutral 333 - 42,190 52,102 52,876 15.7 16.1 34.1 35.7 9.8 9.3 1.5 1.3 16.4 15.3 0.3 0.2

ONGC Buy 316 387 270,610 170,063 198,461 36.3 38.3 34.7 41.9 9.1 7.6 1.6 1.4 18.3 19.5 1.3 1.0

Reliance Industries Neutral 923 - 298,136 397,546 421,695 9.4 8.6 75.0 76.4 12.3 12.1 1.3 1.2 12.4 11.4 0.7 0.6

Gujarat Gas* Neutral 213 - 2,729 3,707 3,850 11.7 12.4 23.7 25.7 9.0 8.3 2.5 2.2 29.6 28.2 0.6 0.6

Indraprastha Gas Neutral 293 - 4,099 3,700 4,218 23.4 22.8 26.7 30.4 11.0 9.6 2.3 1.9 22.7 21.8 1.2 1.0

Petronet LNG Buy 125 167 9,375 40,356 40,872 5.8 6.4 15.0 16.7 8.3 7.5 1.8 1.5 23.0 21.5 0.3 0.3

Gujarat State PetronetLtd.

Neutral 56 - 3,168 1,171 1,287 91.9 91.9 10.1 11.3 5.6 5.0 0.9 0.8 17.3 16.8 - -

Pharmaceuticals

Alembic Pharma Neutral 163 - 3,077 1,736 2,008 17.1 18.9 10.7 13.9 15.3 11.7 4.8 3.6 35.0 34.7 1.8 1.6

Aurobindo Pharma Buy 174 271 5,058 6,641 7,637 15.9 15.9 17.3 20.6 10.0 8.4 1.6 1.3 19.5 18.9 1.2 1.0

Aventis* Neutral 2,411 - 5,552 1,682 1,917 16.6 16.6 92.4 99.1 26.1 24.3 3.7 3.7 15.7 14.8 2.9 2.4

Cadila Healthcare Buy 775 929 15,862 7,280 8,640 15.5 15.7 38.3 46.5 20.2 16.7 4.3 3.6 23.5 23.5 2.5 2.1

Cipla Buy 415 477 33,297 9,274 10,796 23.1 23.1 21.0 23.8 19.8 17.4 3.2 2.7 17.2 16.8 3.3 2.8

Dr Reddy's Accumulate 2,349 2,535 39,934 13,377 15,350 20.4 20.1 112.3 126.8 20.9 18.5 4.5 3.7 23.5 21.8 3.1 2.7

Dishman Pharma Buy 60 168 482 1,394 1,534 22.5 22.4 15.0 16.8 4.0 3.6 0.4 0.4 11.0 11.2 1.0 0.8

GSK Pharma* Neutral 2,528 - 21,412 2,854 3,145 28.6 28.6 76.6 83.3 33.0 30.4 9.9 9.0 31.1 31.0 6.6 6.0

Indoco Remedies Accumulate 70 78 646 760 922 15.3 15.3 6.1 7.8 11.5 9.0 1.4 1.3 12.9 14.7 1.1 0.9

Ipca labs Neutral 647 - 8,164 3,243 3,826 20.5 21.5 36.0 44.4 18.0 14.6 4.2 3.3 26.0 25.4 2.7 2.2

Lupin Neutral 899 - 40,247 11,641 13,933 21.3 21.3 34.8 41.8 25.8 21.5 6.1 4.8 26.2 24.8 3.5 2.9

Ranbaxy* Buy 325 384 13,731 11,400 12,060 10.5 12.5 17.5 22.5 18.5 14.4 3.0 2.6 17.0 19.1 1.2 1.0

Sun Pharma Neutral 1,080 - 111,696 13,509 15,846 41.0 41.0 33.0 39.8 32.7 27.1 6.6 5.5 22.0 22.0 7.7 6.4

Power

GIPCL Buy 64 78 968 1,444 1,482 33.4 33.0 13.7 14.8 4.7 4.3 0.5 0.5 12.3 12.0 0.7 0.5

NTPC Accumulate 144 163 118,487 76,734 86,680 24.5 24.3 13.4 14.5 10.7 9.9 1.3 1.2 12.8 12.7 2.2 2.1


Market Outlook

Stock Watch

July 22, 2013

7/28/2019 Market Outlook, 22-07-2013

16/17



Real Estate

DLF Buy 168 236 29,945 8,293 9,622 36.5 36.1 5.7 6.7 29.5 25.0 1.1 1.0 3.7 4.1 5.7 4.8

MLIFE Neutral 461 - 1,883 888 1,002 30.6 30.6 38.8 43.4 11.9 10.6 1.3 1.2 11.2 11.4 2.7 2.4

Telecom

Bharti Airtel Neutral 330 - 131,934 85,489 94,229 31.9 31.9 10.2 14.6 32.3 22.6 2.3 2.1 7.2 9.4 2.2 1.9

Idea Cellular Neutral 151 - 49,899 25,640 28,459 26.9 27.2 4.0 4.9 37.6 30.4 3.2 2.9 8.4 9.4 2.3 2.1

Rcom Neutral 145 - 29,959 22,751 24,628 30.9 31.3 3.4 5.3 42.4 27.6 0.9 0.9 2.1 3.1 2.9 2.6

OthersAbbott India* Buy 1,409 1,659 2,993 1,863 2,081 11.8 12.4 71.2 83.0 19.8 17.0 4.0 3.4 21.6 21.5 1.4 1.1

Bajaj Electricals Buy 180 237 1,795 3,885 4,472 5.4 7.2 11.0 19.7 16.4 9.1 2.2 1.9 13.5 20.3 0.5 0.4

Cera Sanitaryware Buy 512 613 648 631 797 14.5 13.7 42.6 51.1 12.0 10.0 2.9 2.3 26.5 25.3 1.0 0.8

Cravatex Buy 250 459 65 248 284 6.5 7.3 27.2 38.2 9.2 6.5 1.5 1.2 15.7 18.5 0.4 0.4

Finolex Cables Accumulate 65 68 987 2,563 2,899 9.8 9.8 10.1 11.3 6.4 5.7 0.9 0.8 14.3 13.8 0.3 0.3

Force Motors Buy 250 437 326 2,304 2,649 3.1 3.6 28.0 43.7 8.9 5.7 0.3 0.3 3.1 4.7 0.1 0.1

Goodyear India* Accumulate 306 345 706 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 117 177 319 1,053 1,169 6.3 7.1 13.8 17.7 8.5 6.6 1.2 1.0 15.0 16.7 0.3 0.3

Honeywell Automation* Neutral 2,524 - 2,232 1,842 2,131 7.7 7.8 112.4 132.4 22.5 19.1 2.8 2.5 13.3 13.8 1.1 1.0

IFB Agro Buy 139 198 125 495 651 12.7 12.9 29.3 39.5 4.7 3.5 0.7 0.6 15.4 17.6 0.4 0.3

ITD Cementation Buy 147 234 169 1,430 1,573 11.1 11.0 19.1 26.9 7.7 5.5 0.4 0.4 5.4 7.1 0.5 0.5

Jyothy Laboratories Accumulate 178 199 2,959 1,220 1,476 13.3 13.6 5.5 9.0 32.3 19.7 3.7 3.3 12.1 17.7 2.8 2.2

MRF Neutral 13,869 - 5,882 11,799 12,587 14.1 13.5 1,792.4 1,802.0 7.7 7.7 1.6 1.4 23.5 19.2 0.6 0.5

Page Industries Neutral 4,487 - 5,004 1,057 1,282 19.4 19.6 124.8 153.7 36.0 29.2 17.8 13.1 56.3 51.8 4.8 4.0

Relaxo Footwears Accumulate 718 791 862 1,146 1,333 10.9 11.4 45.9 60.9 15.7 11.8 3.3 2.6 23.0 24.6 0.9 0.8

Siyaram Silk Mills Buy 243 343 228 1,158 1,322 11.9 11.9 72.9 85.7 3.3 2.8 0.6 0.5 19.9 19.6 0.4 0.4Styrolution ABS India* Buy 410 617 722 1,068 1,223 9.6 9.6 38.1 44.1 10.8 9.3 1.5 1.3 14.5 14.7 0.7 0.6

TAJ GVK Buy 59 108 370 300 319 35.8 36.2 7.9 9.1 7.5 6.5 1.0 0.9 13.9 14.4 1.5 1.3

Tata Sponge Iron Buy 262 371 404 814 849 17.0 17.6 64.6 69.2 4.1 3.8 0.6 0.5 14.5 13.8 0.1 (0.1)

TTK Healthcare Buy 533 686 414 435 516 6.2 7.1 24.3 33.3 21.9 16.0 3.6 3.1 17.6 20.8 0.8 0.6

Tree House Neutral 292 - 1,049 153 194 53.0 52.8 12.4 15.6 23.5 18.7 2.8 2.5 11.8 13.1 7.0 5.4

TVS Srichakra Buy 173 230 133 1,591 1,720 6.1 6.4 24.5 38.3 7.1 4.5 0.8 0.7 10.9 15.9 0.3 0.3

United Spirits Neutral 2,740 - 39,817 12,294 14,162 12.0 12.0 42.1 67.7 65.1 40.5 4.6 4.1 9.1 10.7 3.6 3.1

Vesuvius India* Buy 375 439 761 600 638 20.1 19.4 35.7 36.6 10.5 10.3 1.9 1.6 19.4 17.1 1.1 0.9

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on July 19, 2013


Market Outlook

Stock Watch

July 22, 2013

7/28/2019 Market Outlook, 22-07-2013

17/17

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

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market outlook, 22-07-2013

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