February 6, 2014 -...

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Market Outlook February 6, 2014

Dealer’s Diary Indian Markets are expected to open in the green today tracking positive start to SGX Nifty and most of the Asian indices.

US markets recovered from an early move to the downside but maintained negative bias throughout the trading session on Wednesday before closing mostly lower. The early weakness on Wall Street was partly in reaction to the release of a report from ADP and Moody's Analytics showing that employment in the US private sector increased by 175,000 jobs in January, as against expectations of 180,000 jobs. However, the negative sentiment was partly offset by a separate report from the ISM which showed that non-manufacturing index edged up to 54.0 in January from 53.0 in December.

Meanwhile, Indian markets posted modest gains on Wednesday, with the benchmark indices rebounding from a four-month low as investors indulged into bargain hunting tracking solid gains in US markets overnight. While reports on US weekly jobless claims, international trade, and labor productivity are likely to attract attention on Thursday, traders may be reluctant to make any significant moves ahead of the release of the US monthly jobs report on Friday.

Markets Today

The trend deciding level for the day is 20,209 / 6,004 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 20,342 – 20,422 / 6,046 – 6,070 levels. However, if NIFTY trades below 20,209 / 6,004 levels for the first half-an-hour of trade then it may correct 20,128 – 19,996 / 5,980 – 5,938 levels.

Indices S2 S1 PIVOT R1 R2

SENSEX 19,996 20,128 20,209 20,342 20,422

NIFTY 5,938 5,980 6,004 6,046 6,070

News Analysis Engineers India: Offer for sale - Subscribe Auto Expo 2014 Result Review: BHEL,GSK Consumer, Ranbaxy Labs, Electrosteel Castings,

TTK Healthcare Result Preview: Ambuja Cements, Bank of Baroda, ACC, Aurobindo Pharma,

Central Bank Refer detailed news analysis on the following page

Net Inflows (February 04, 2014) ` cr Purch Sales Net MTD YTD FII 2,832 3,161 (329) (1,164) (1,306) MFs 581 378 203 (2,516) (2,516)

FII Derivatives (February 05, 2014) ` cr Purch Sales Net Open Interest Index Futures 1,286 1,733 (446) 11,944 Stock Futures 1,553 1,566 (14) 29,884

Gainers / Losers Gainers Losers

Company Price (`) chg (%) Company Price (`) chg (%)

Essar Oil 51 7.4 Idea Cellular 144 (4.6)

Amara Raja 358 6.5 Shriram City Union 946 (3.0)

Ranbaxy Lab 340 5.7 IRB Infra 74 (2.7)

Power Finance 146 5.5 Mcleod Russel 250 (2.5)

Tata Steel 359 4.7 Jubl. Food 1,068 (2.5)

Domestic Indices Chg (%) (Pts) (Close)

BSE Sensex 0.2 49 20,261

Nifty 0.4 22 6,022

MID CAP 0.5 29 6,311

SMALL CAP 1.0 60 6,305

BSE HC 0.1 15 10,173

BSE PSU 0.8 42 5,533

BANKEX 0.3 36 11,695

AUTO 1.6 186 11,602

METAL 1.6 142 8,969

OIL & GAS (0.3) (22) 8,318

BSE IT 1.0 87 9,242

Global Indices Chg (%) (Pts) (Close)

Dow Jones (0.0) (5) 15,440

NASDAQ (0.5) (20) 4,012

FTSE 0.1 9 6,458

Nikkei 1.2 172 14,180

Hang Sang (0.6) (128) 21,269

Straits Times (0.2) (6) 2,960

Shanghai Com (0.8) (17) 2,033

Indian ADR Chg (%) (Pts) (Close)

INFY (1.0) (0.5) $56.5

WIT (1.2) (0.1) $12.5

IBN (3.2) (1.1) $31.6

HDB (0.5) (0.1) $31.3

Advances / Declines BSE NSE

Advances 1,448 852

Declines 1,129 571

Unchanged 144 83

Volumes (` cr)

BSE 1,889

NSE 10,859



Engineers India: Offer for sale - Subscribe

Engineers India Ltd (EIL) is one of the leading design and engineering organizations in South Asia. The company provides engineering consultancy and EPC services, and is principally focused on the oil & gas and petrochemical industries.

Leadership position in project implementation in hydrocarbon business: EIL has developed indigenous technology and expertise for offshore platforms, oil & gas processing, oil refining, petrochemicals and pipeline projects over the last 48 years enabling it to provide a gamut of management services from project conception to commissioning in hydrocarbon business. EIL’s leadership in project implementation and long-term relationships with its clients gives it a competitive advantage over its peers.

Diversified operations across sectors and geographies: Over the years, the company has diversified across various segments such as LNG, fertilizer, power, mining and metallurgy and infrastructure to encash the untapped infra opportunity not only in Indian but globally (presence in Middle East, Africa, Asia and South-east Asia) as well and has an excellent track record of achieving the same. This will help the company to benefit from any recovery in the capex cycle both domestically and internationally.

Healthy order inflows over past couple of quarters: The company has secured orders worth `1,800cr (up 39.5 % yoy) in 9MFY2014, taking the order backlog to `3,820cr, implying an order backlog to sales ratio of 2.1x on a trailing basis. This includes a major order worth US$139mn bagged from Dangote Group in Nigeria for project management consultancy and EPC management.

Outlook and valuation: Although the company has reported weak revenues in 9MFY2014, the improvement in order inflows indicates recovery in revenue going forward. At the lower and upper limit of the price-band of `145 and `150, the stock is currently trading at valuations of 8.4x and 8.7x FY2015E Bloomberg EPS respectively which is lower than its 3-year average PE of 14.8x. Considering EIL’s dominance in the hydrocarbon business and attractive valuations, we recommend Subscribe on the stock.

Auto Expo 2014

Day 1 of the Auto Expo 2014 saw strong action in the two-wheeler and compact sedan segments; however, there were no major small car launches on the first day of the Auto Expo. The ongoing Auto Expo indicates increasing competitive intensity in the compact sedan and scooters segment going ahead.

Major launches in the two-wheeler segment

Two-wheeler manufacturers unveiled number of models at the expo of which five were in the scooter segment. In the motorcycle segment, most of the products unveiled are in the premium segment. Hero MotoCorp launched two new models in the 100cc segment, Splendor Pro Classic and Passion TR, which are expected to be available from April 2014. The company also displayed three new concept vehicles for the future. Bajaj Auto launched two new Pulsars, Pulsar SS400 and Pulsar CS400 in the premium segment. Honda Motorcycles & Scooters India



unveiled new Activa which would be available from April 2014. Yamaha and Suzuki Motorcycles too launched new scooters Alpha and LetS which are expected to launch shortly.

Compact Sedan and MPV major attraction

Passenger vehicle manufacturers targeted the fast growing compact sedan segment during the Auto Expo. Tata Motors and Hyundai introduced its compact sedans Zest and Xcent respectively ahead of the Auto Expo; while Ford unveiled a compact sedan Figo which is a concept vehicle. In the MPV space, Honda unveiled production ready Mobilio; whereas Tata Motors and General Motors showcased concept models, Nexon and Adra respectively. Market leader Maruti Suzuki unveiled two concept models, sedan Ciaz and crossover SX4 S-Cross.



Exhibit 1: Models unvieled on Day 1 at Auto Expo 2014 Manufacturer Brand Engine details Production ready/ Concept Likely launch date

TWO-WHEELERS

Bajaj Auto Pulsar SS400 375cc Yes 2014 Bajaj Auto Pulsar CS400 375cc Concept 2015 Harley Davidson Street 750 750cc Yes Mar-14 Hero MotoCorp Splendor Pro Classic 100cc Yes Apr-14 Hero MotoCorp Passion TR 100cc Yes Apr-14 Hero MotoCorp Hatsur 620cc Concept

Hero MotoCorp SimplEcity

Concept

Hero MotoCorp iON

Concept

Honda Motorcycles & Scooters India Activa 125 125cc Yes Apr-14 Honda Motorcycles & Scooters India CBR 650F 650cc FY2016 Honda Motorcycles & Scooters India CBR 500R 500cc Yes 2HCY2014 Honda Motorcycles & Scooters India CX-01 NA Concept

KTM RC 200 200cc Yes June-July 2014 KTM RC 390

Yes July-August 2014

Piaggio Vespa S

Yes Feb - Mar 2014 Piaggio Liberty 125cc Piaggio Moto Guzzi

Suzuki Motorcycles LetS 110cc Yes Apr-14 Suzuki Motorcycles Gixxer 155cc Yes Jul-Aug 2014 Suzuki Motorcycles Inazuma 250cc Yes Feb-14 Suzuki Motorcycles V Storm 1000cc Yes Feb-14 TVS Motor Company Draken 249cc Concept Yamaha Alpha 113cc

Feb-14

PASSENGER VEHICLES

Bajaj Auto U car

Concept 2016 Chevrolet Adra

Concept

Chevrolet Beat facelift

Feb-14

Fiat Avventura Fiat Abarth 500

Fiat new Linea

Yes Mar-14

Ford Figo Sedan

Concept Ford new Fiesta

Honda Mobilio

FY2015

Honda Jazz

FY2015 Honda Vision XS-1 Concept Honda Accord Hybrid

Hyundai Xcent

Mar-14

Hyundai Santa Fe

Feb-14 Maruti Suzuki Ciaz 1400cc/ 1600cc Concept Maruti Suzuki SX4 S Cross

Concept

Piaggio NT3 230cc/ 350cc Concept Renault Kwid

Concept

Renault new Fluence

Mar-14 Renault new Duster

Mar-14

Tata Motors Bolt 1200cc

2HCY2014 Tata Motors Zest 1200cc

2HCY2014

Tata Motors Nexon Concept Tata Motors ConnectNext

Concept

COMMERCIAL VEHICLES

Tata Motors Prima CX

Ultra 614

LPS 4923 LA

Isuzu D-Max Space Cab

Source: Angel Research



Result Review

BHEL (CMP: `161/ TP: -/ Upside: -)

For 3QFY2014, BHEL’s top-line performance was below our estimates. Top-line declined by 15.5% yoy to `8,635cr (compared to our estimate of `9,096cr) due to execution delays (partly on account of delay in payments by clients). Revenue from power segment declined by 11.9% yoy to `7,319cr while revenue from Industry segment declined by 28.5% yoy to `1,600cr. On the EBITDA front, the company's margin contracted by 457bp yoy to 11.4%. Consequently, Profit declined sharply by 41.2% yoy to `695cr (in-line with our estimate of `709cr). We maintain our Neutral recommendation on the stock as declining order backlog limits revenue visibility for BHEL

Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2014E 41,082 13.1 3,961 16.2 18.8 9.9 1.8 6.2 0.8

FY2015E 37,867 12.0 3,216 13.1 13.8 12.2 1.7 7.8 0.9

GSK Consumer (CMP:`4,356/TP:-/Upside:-)

For 4QCY2013 posted an 18.3% yoy growth in top-line to `839cr aided by both higher volume and better realization. Gross margin fell by 260bp yoy and stood at63.4%. The company’s operating profit rose by 14.8% yoy to `59cr. Bottom-line rose by 14.5% yoy to `80cr aided by superior operating performance and a 22.8% yoy growth in other income. We maintain a neutral rating on the stock.

Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/sales

Dec (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

CY2013E 3,603 13.8 506 119.6 33.8 36.4 11.1 29.3 4.5

CY2014E 4,259 16.6 630 149.7 34.3 28.7 8.9 22.8 3.8

Ranbaxy Labs (CMP: `340/ TP: / Upside: -)

Ranbaxy labs posted results better than expected, on the operational front. Ranbaxy Labs, posted sales of `2859cr V/s `2,758cr expected posting a yoy growth of 7.0%. The growth was all rounded, with both India and exports growing robustly. Indian formulation sales posted a growth of 8.5% yoy, while, the export sales in US grew by 19.7%, Eastern Europe & CIS grew by 20.4%, while eastern Europe grew by 4.4% yoy. On the other hand, APTAC & LATAM and Africa posted a dip in sales. The main positive factor was its OPM, which came in at 7.9% v/s 6.6% (2.5% in 4QCY2012), mainly on back of Gross Profit Margin improvement, which expanded by 665bps. However, on back of the extra-ordinaries, the company posted a net loss of `158cr V/s `493cr, adjusted for which, the adjusted net loss was around `3cr V/s `72cr.

In the concall, the company mentioned that it has met all commitments it made to the USFDA for its Mohali plant and that remediation was on track. On Taonsa plant, according to the management, only about 10-12% of its US sales were dependent on products from it. Overall, also the company has maintained that only a minor part of their sales would be impacted on back of the Taonsa plant being under import alert. We remain neutral on the stock.




March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2014E 13,261 6.5 605 14.3 13.8 23.8 3.1 17.3 1.1

FY2015E 11,331 8.4 642 15.2 12.8 22.4 2.7 15.4 1.3

Electrosteel Castings (CMP: `14 / TP: Under Review / Upside: -)

Electrosteel Castings’ (ECL) 3QFY2014 net revenue increased by 3.9% yoy to `491cr. However, raw material costs decreased by 7.3% yoy to `236 and other operating income grew by 215.6% yoy to `22cr. This resulted in EBITDA growing by 102.5% yoy to `95cr. Interest expenses grew by 34.1% yoy to `36cr and other income decreased by 92.3% yoy to `3cr which resulted in reported net profit growing by only 2.7% yoy to `34cr. The company reported an exceptional forex loss of `3cr during 3QFY2014, compared to exceptional forex loss of `6cr in 3QFY2013. Excluding these exceptional items, adjusted net profit decreased by 6.2% yoy to `36cr. During the quarter, the company issued and allotted 1.7cr shares to promoters on a preferential basis at a price of `13.85/share, which will result in equity infusion of `24cr in the company. In our view, this preference issue has been undertaken to improve ECL’s debt equity position which in turn will enable it to raise additional debt. The additional funds are likely to be deployed to fund expansion activities at its associate, Electrosteel Steels, where ECL holds 39.6% stake. We keep our rating and target price on the stock under review.


March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2014E 1,976 11.8 74 4.9 3.3 15.9 0.1 11.1 1.2

FY2015E 2,017 12.7 99 3.9 4.2 7.0 0.1 9.9 1.1

TTK Healthcare (CMP: `500/ TP: -/ Upside: -)

TTKH reported a mixed set of numbers for 3QFY2014. Top-line rose by 5.0% qoq to `106cr, in line with our estimate. The EBITDA margin stood at 5.4% for the quarter, flat on qoq basis. However, it came 167bp higher than our estimate on account of lower than expected raw material cost as a percentage of net sales. Consequently, the net profit came 43.4% (on lower base) higher than expectation at `4cr, marginal decline of 3.4% on qoq basis.

On segmental basis, Food and consumer product business revenue grew by 20.5% and 5.2% respectively on qoq basis. However, on EBIT front, only food segment showed marginal improvement of 50bp on qoq basis to 22.5%. To a positive, consumer product business reported a reduction in its losses on qoq basis.

Recently, the National Pharma Pricing Authority (NPPA) sets a price cap of `6.5 per piece of condom treating it as a drug. TTK has moved to the Madras High Court against the government's order. We await further clarity on this matter and hence the stock is currently under review.


March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2014E 420 4.8 13 16.8 13.0 29.8 3.8 16.6 0.8

FY2015E 481 6.1 18 23.8 17.0 21.0 3.4 11.6 0.7



Result Preview

Ambuja Cements (CMP: `155/TP:-/Upside:-)

Ambuja Cements is expected to declare its 4QCY2013 results today. We expect the top-line to decline by 1.7% yoy to `2,275cr on account of lower realization. OPM is expected to decline by 176bp yoy to 17.7% impacted by lower realization. Bottom-line is expected to decline by 9% yoy to `193cr. We maintain our neutral rating on the stock.

Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/tonne*

Dec (` cr) (%) (` cr) (`) (%) (x) (x) (x) (US $)

CY2013E 9,170 19.0 1,146 7.4 12.6 20.9 2.5 10.8 104CY2014E 10,562 21.8 1,415 9.2 14.5 16.9 2.4 7.8

Note: *Computed on TTM basis

Bank of Baroda (CMP: `542/ TP: `597/ Upside: 10.1%)

Bank of Baroda is scheduled to announce its 3QFY2014 results today. We expect the bank to report a moderate NII growth of 5.3% yoy to `2,991cr. Non-interest income is also expected to grow moderately by 4.8% yoy to `881cr. Operating expenses are expected to increase by 24.3% yoy to `1,772cr, thereby leading to operating profit decline of 6.9% yoy to `2,101cr. Provisioning expenses are expected to de-grow by 26.0% yoy to `771cr. Overall Net profit is expected to grow by 11.7% yoy to `1,130cr. At the CMP, the stock is trading at 0.6x FY2015E ABV. We maintain our Accumulate recommendation on the stock, with a target price of `597.

Y/E Op. Inc NIM PAT EPS ABV ROA ROE P/E P/ABV

March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2014E 15,974 2.1 4,643 107.8 786.9 0.8 13.6 4.9 0.7

FY2015E 17,895 2.2 5,260 122.1 884.8 0.8 13.8 4.4 0.6

ACC (CMP: `1,008/TP:`1,225/Upside:8%)

ACC is expected to declare its 4QCY2013 results today. We expect the top-line to decline by 6.7% yoy to `2,892cr. Tepid performance on the volume front coupled with weak realization is expected to lead to dismal performance on the top-line front. Further, top-line growth during the quarter is expected to be impacted by higher base as ACC’s subsidiaries were amalgamated with the company in thecorresponding quarter of last year. OPM is expected to expand by 263bp yoy to 15.5%. Bottom-line is expected to decline by 27.2% yoy to `174cr. We maintain our Buy recommendation on the stock with a Target Price of `1,225.

Y/E Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/tonne*

Dec (` cr) (%) (` cr) (`) (%) (x) (x) (x) (US $)

CY2013E 11,119 15.4 992 52.8 13.0 19.1 2.4 9.2 76

CY2014E 12,400 17.3 1,314 69.9 15.9 14.4 2.2 6.9

Note: *Computed on TTM basis



Aurobindo Pharma (CMP: `491/ TP: / Upside: -)

Aurobindo Pharma is expected to post a net sales growth of 15.3% yoy to end the period at `1790cr. The margins are likely to expand to 17.4% Vs 15.5% in the corresponding period of previous year, which will lead the net profit of `186.7cr vs. a net profit of `137.0cr in the corresponding period of previous year. We remain neutral on the stock.


March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2014E 7,166 18.5 815 28.0 27.1 18.8 4.2 13.0 2.4

FY2015E 11,214 14.1 940 32.3 24.3 16.2 3.3 12.4 1.7

Central Bank- (CMP: `46 / TP: - / Upside: -)

Central Bank is slated to announce its 3QFY2014 results today. We expect the bank to report a Net Interest Income (NII) growth of 6.4% yoy to `1,499cr. Non-interest income is expected to grow by 4.8% yoy to `374cr. Operating expenses of the bank are expected to increase by 20.9% yoy at `1,194cr, resulting in a 12.7% yoy decline in pre-provisioning profit to `680cr. Provisioning expenses are expected to de-grow by 28.2% yoy to `450cr. Overall Net Profit is expected to grow by 12.2% yoy to `202cr. At the CMP, the stock trades at a valuation of 0.6x FY2015E ABV, which is higher compared to similar peers. We maintain our Neutral recommendation on the stock.

Y/E Op. Inc NIM PAT EPS ABV ROA ROE P/E P/ABV

March (` cr) (%) (` cr) (`) (%) (x) (x) (x) (x)

FY2014E 7,918 2.2 (909) (7.8) 68.0 (0.4) (8.7) (5.8) 0.7

FY2015E 8,793 2.3 1,417 9.4 74.7 0.4 9.7 4.8 0.6

Quarterly Bloomberg Brokers Consensus Estimates

ACC Ltd - February 06, 2014 Particulars (` cr) 4QCY13E 4QCY12 y-o-y (%) 3QCY13 q-o-q (%)

Net sales 2,742 3,099 (11.5) 2,509 9.3

EBITDA 281 398 (29.3) 286 (1.7)

EBITDA margin (%) 10.3 12.8 11.4

Net profit 171 239 (28.6) 121 41.3

Ambuja Cements Ltd - February 06, 2014 Particulars (` cr) 4QCY13E 4QCY12 y-o-y (%) 3QCY13 q-o-q (%)

Net sales 2,192 2,313 (5.2) 2,005 9.3

EBITDA 304 450 (32.5) 268 13.4

EBITDA margin (%) 13.9 19.5 13.4

Net profit 187 212 (11.7) 166 12.7

Bank of Baroda - February 06, 2014 Particulars (` cr) 3QFY14E 3QFY13 y-o-y (%) 2QFY14 q-o-q (%)

Net profit 1,028 1,012 1.6 1,168 (12.0)



Reliance Infrastructure Ltd - February 06, 2014 Particulars (` cr) 3QFY14E 3QFY13 y-o-y (%) 2QFY14 q-o-q (%)

Net sales 2,900 3,442 (15.8) 2,798 3.6

EBITDA 443 490 (9.5) 477 (7.1)

EBITDA margin (%) 15.3 14.2 17.0

Net profit 360 659 (45.5) 346 4.0

Reliance Power Ltd Consol - February 06, 2014 Particulars (` cr) 3QFY14E 3QFY13 y-o-y (%) 2QFY14 q-o-q (%)

Net sales 1,347 1,464 (8.0) 9 15,667.6

EBITDA 456 493 (7.4) (21) 0.0

EBITDA margin (%) 33.9 33.7

-241.9

Net profit 248 266 (6.6) 16 1,435.9

Reliance Capital Ltd Consol - February 07, 2014 Particulars (` cr) 3QFY14E 3QFY13 y-o-y (%) 2QFY14 q-o-q (%)

Net profit 164 101 62.1 62 164.1

Reliance Communications Ltd Consol - February 07, 2014 Particulars (` cr) 3QFY14E 3QFY13 y-o-y (%) 2QFY14 q-o-q (%)

Net sales 5,535 4,797 15.4 2,868 93.0

EBITDA 1,918 1,488 28.9 581 230.1

EBITDA margin (%) 34.6 31.0 20.3

Net profit 237 105 125.7 81 192.6

Tata Power Co Ltd Consol - February 07, 2014 Particulars (` cr) 3QFY14E 3QFY13 y-o-y (%) 2QFY14 q-o-q (%)

Net sales 9,229 8,992 2.6 2,075 344.8

EBITDA 1,975 1,855 6.5 602 227.9


29.0

Net profit 200 (329) 0.0 262 (23.7)

Jaiprakash Associates Ltd - February 10, 2014 Particulars (` cr) 3QFY14E 3QFY13 y-o-y (%) 2QFY14 q-o-q (%)

Net sales 3,369 3,398 (0.9) 3,149 7.0

EBITDA 750 795 (5.7) 790 (5.1)

EBITDA margin (%) 22.3 23.4 25.1

Net profit 10 111 (90.7) 68 (84.8)

NMDC Ltd - February 10, 2014 Particulars (` cr) 3QFY14E 3QFY13 y-o-y (%) 2QFY14 q-o-q (%)

Net sales 2,885 2,047 41.0 2,478 16.4

EBITDA 1,818 1,391 30.7 1,494 21.7

EBITDA margin (%) 63.0 68.0 60.3

Net profit 1,550 1,293 19.9 1,318 17.6



Tata Motors Ltd Consol - February 10, 2014 Particulars (` cr) 3QFY14E 3QFY13 y-o-y (%) 2QFY14 q-o-q (%)

Net sales 61,112 45,821 33.4 8,761 597.5

EBITDA 8,757 5,657 54.8 81 10,669.1


0.9

Net profit 3,500 1,801 94.3 (804) 0.0

Economic and Political News

Clear understanding that fossil fuel subsidies must go: Mayaram Services woes continue, PMI contracts for 7th straight month Doubtful if key legislations can be passed this Parliament session: P

Chidambaram

Corporate News

Tata Motors unveils SUV Nexon, ConnectNext concept cars SKS Microfinance to raise `400cr via QIP in FY2015 Hero MotoCorp unveils two new 100 cc bikes Kolte-Patil Developers pays `350cr for 34 acres in Pune

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

Date Company

February 06, 2014Bank of Baroda, Reliance Power, Ambuja Cements, ACC, Reliance Infra., Central Bank, GSPL, Aurobindo Pharma, MRF

February 07, 2014Tata Power Co., Rcom, Cadila Healthcare, Sun TV Network, Reliance Capital, Andhra Bank, Corporation Bank, CESC, Hexaware, United Bank, Punj Lloyd, J K Lakshmi Cements

February 08, 2014 J & K Bank, Dena Bank, Godawari Ispat, Abbott India

February 09, 2014

February 10, 2014NMDC, Tata Motors, Jaiprakash Asso., Essar Oil, Indraprasth Gas, BGR Energy , India Cements, Consolidated Co, CEAT

February 11, 2014Tata Steel, Dr Reddy's, HPCL, GMR Infra., Gujarat Gas, MOIL, FAG Bearings, Bajaj Electrical, Orchid Chemicals, JK Tyre

February 12, 2014Coal India, BPCL, Cipla, Bhushan Steel, Tata Comm, ITNL, HT Media, Page Industries, Apollo Tyres, Ramco Cements, Nagarjuna Const., Finolex Cables, Cravatex

February 13, 2014 ONGC, IOC, Sun Pharma, Hindalco, United Spirits, Anant Raj

February 14, 2014St Bk of India, M&M, SAIL, Nestle, Rural Elec.Corp., Unitech, Suzlon Energy, CRISIL, Britannia, Sadbhav Engg., Simplex Infra, Patel Engg.

February 18, 2014 GSK Pharma, ABB

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Time Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

February 6, 2014 7:00PM US Initial Jobless claims Thousands Feb 1 348.00 335.00

5:30PM UK BOE Announces rates % Ratio Feb 6 0.50 0.50

6:15PM Euro Zone ECB announces interest rates % Feb 6 0.25 0.25

February 7, 2014 3:00PM UK Industrial Production (YoY) % Change Dec 2.50 2.30

7:00PM US Change in Nonfarm payrolls Thousands Jan 74.00 183.50

7:00PM US Unnemployment rate % Jan 6.70 6.70

February 10, 2014 6:29PM India Imports YoY% % Change Jan (15.25) --

5:29PM India Exports YoY% % Change Jan 3.50 --

February 12, 2014 5:29PM China Exports YoY% % Change Jan 4.30 1.10

5:30PM India Industrial Production YoY % Change Dec (2.10) --

February 14, 2014 12:00PM India Monthly Wholesale Prices YoY% % Change Jan 6.16 --

7:45PM US Industrial Production % Jan 0.31 0.30

7:00AM China Consumer Price Index (YoY) % Change Jan 2.50 2.40

12:30PM Germany GDP nsa (YoY) % Change 4Q P 1.10 --

3:30PM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 4Q A 0.10 --

February 18, 2014 3:00PM UK CPI (YoY) % Change Jan 2.00 --

February 19, 2014 3:00PM UK Jobless claims change % Change Jan (24.00) --

7:00PM US Producer Price Index (mom) % Change Jan 0.40 --

7:00PM US Building permits Thousands Jan 991.00 --

7:00PM US Housing Starts Thousands Jan 999.00 --

February 20, 2014 2:00PM Germany PMI Manufacturing Value Feb A 56.50 --

8:30PM Euro Zone Euro-Zone Consumer Confidence Value Feb A (11.70) --

7:00PM US Consumer price index (mom) % Change Jan 0.30 --

February 21, 2014 8:30PM US Existing home sales Million Jan 4.87 --

February 24, 2014 3:30PM Euro Zone Euro-Zone CPI (YoY) % Jan F 0.70 --

February 25, 2014 8:30PM US Consumer Confidence S.A./ 1985=100 Feb 80.70 --

February 26, 2014 8:30PM US New home sales Thousands Jan 414.00 --

3:00PM UK GDP (YoY) % Change 4Q P 2.80 --


February 06, 2014

Market Outlook

1 1

Market Outlook

February 06, 2014


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

11.4

9.5

8.6

9.2

9.9

7.5

6.5

6.0

5.1 5.4

5.2

4.7 4.8 4.4

4.8

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

4Q

FY10

1Q

FY11

2Q

FY11

3Q

FY11

4Q

FY11

1Q

FY12

2Q

FY12

3Q

FY12

4Q

FY12

1Q

FY13

2Q

FY13

3Q

FY13

4Q

FY13

1Q

FY14

2Q

FY14

(%)

(0.6)

2.5

0.6

3.5

1.5

(2.5)

(1.8)

2.6

0.4

2.0

(1.6)

(2.1)(3.0)

(2.0)

(1.0)

-

1.0

2.0

3.0

4.0

Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

(%)

7.3

5.7

4.84.6

5.2

5.9

7.0 7.17.2

7.5

6.2

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

(%)

44.0

46.0

48.0

50.0

52.0

54.0

56.0

58.0

60.0 N

ov-12

Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Mfg. PMI Services PMI

(21.0)

(18.0)

(15.0)

(12.0)

(9.0)

(6.0)

(3.0)

0.0

3.0

6.0

9.0

12.0

15.0

18.0

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Exports yoy growth Imports yoy growth(%)

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Feb-13

Mar-13

Apr-13

Apr-13

May-13

Jun-13

Jun-13

Jul-13

Aug-13

Aug-13

Sep-13

Sep-13

Oct-13

Nov-13

Nov-13

Dec-13

Jan-14

Jan-14

Repo rate Reverse Repo rate CRR (%)

2

Market Outlook

February 06, 2014

www.angelbroking.com www.angelbroking.com

Global watch

Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries


Exhibit 2: 2014 GDP Growth projection by IMF (%, yoy) across select developing and developed countries

Source: IMF, Angel Research

Exhibit 3: One year forward P-E ratio across select developing and developed countries


2.2

1.2

4.8

7.7

1.8

5.7

5.0

2.7

2.8

2.7

1.1

0.2

2.4

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Brazil

Russia

India

China

South

Africa

Indonesia

Malaysia

Thailand

UK

USA

Germ

any

France

Japan

(%)

2.5

3.0

5.1

7.3

2.9

5.5

4.9

5.2

1.9

2.6

1.4

1.0

1.2

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Brazil

Russia

India

China

South

Africa

Indonesia

Malaysia

Thailand

UK

USA

Germ

any

France

Japan

(%)

9.5

2.8

14

.1

7.8

13

.6

13

.4

15

.9

11

.7

12

.1

14

.8

12

.4

14

.1

13

.7

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Brazil

Russia

India

China

South

Africa

Indonesia

Malaysia

Thailand

UK

USA

Germ

any

France

Japan

(x)

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 161 - 3,138 1,696 1,983 14.9 14.9 7.7 8.8 21.0 18.3 4.4 3.7 22.4 21.9 2.0 1.7

United Phosphorus Buy 190 250 8,401 10,091 11,302 16.5 16.5 19.2 22.5 9.9 8.4 1.6 1.4 17.0 17.2 1.0 0.8

Auto & Auto Ancillary

Amara Raja Batteries Neutral 353 - 6,033 3,445 3,945 16.6 16.4 22.3 24.1 15.9 14.7 4.3 3.5 31.1 26.3 1.7 1.4

Apollo Tyres Neutral 113 - 5,685 13,163 14,163 12.2 12.0 14.6 15.8 7.7 7.1 1.4 1.2 19.8 18.1 0.6 0.5

Ashok Leyland Neutral 16 - 4,270 10,007 11,873 1.0 5.0 (2.0) (0.5) 1.6 1.7 (12.9) (3.4) 0.6 0.5

Automotive Axle# Neutral 280 - 423 739 984 9.4 10.4 15.5 29.8 18.1 9.4 1.5 1.4 8.3 15.0 0.6 0.5

Bajaj Auto Buy 1,894 2,250 54,795 20,418 23,659 20.8 20.3 116.3 135.8 16.3 14.0 5.6 4.5 38.1 35.9 2.2 1.9

Bharat Forge Accumulate 341 380 7,935 6,339 6,593 17.0 17.3 17.6 20.9 19.3 16.3 3.1 2.8 17.2 18.0 1.5 1.3

Bosch India* Buy 9,192 11,215 28,863 10,074 11,708 17.0 18.0 369.0 448.6 24.9 20.5 4.0 3.4 15.9 16.6 2.5 2.1

CEAT Neutral 317 - 1,141 5,260 5,843 12.0 11.7 76.4 83.3 4.2 3.8 1.1 0.9 30.2 25.5 0.3 0.3

Exide Industries Neutral 104 - 8,815 5,730 6,508 13.6 14.3 5.6 6.8 18.4 15.3 2.4 2.1 13.4 14.5 1.2 1.0

FAG Bearings* Accumulate 1,591 1,751 2,644 1,646 1,948 15.4 16.4 97.8 125.1 16.3 12.7 2.3 2.0 15.2 16.7 1.4 1.2

Hero Motocorp Accumulate 1,983 2,180 39,606 25,494 27,912 13.9 14.4 104.4 145.4 19.0 13.7 7.0 5.5 39.0 45.1 1.4 1.2

JK Tyre Buy 144 187 590 7,530 8,335 11.3 11.1 70.2 75.0 2.0 1.9 0.5 0.4 27.7 23.3 0.4 0.4

Mahindra and Mahindra Buy 876 1,050 53,937 39,419 44,609 12.9 12.6 60.4 65.2 14.5 13.4 3.0 2.5 22.3 20.4 1.1 0.9

Maruti Neutral 1,607 - 48,535 44,203 51,105 12.1 11.6 96.9 108.6 16.6 14.8 2.3 2.0 14.7 14.4 0.9 0.8

Motherson Sumi Accumulate 202 220 17,799 30,650 35,181 9.4 9.7 10.0 13.6 20.2 14.9 5.7 4.4 32.6 33.2 0.7 0.6

Subros Neutral 24 - 142 1,139 1,296 10.3 10.3 1.6 2.5 14.8 9.3 0.5 0.5 3.3 5.2 0.4 0.4

Tata Motors Buy 356 447 95,856 232,121 267,301 14.1 14.5 41.8 49.7 8.5 7.2 2.3 1.8 30.6 27.6 0.5 0.4

TVS Motor Neutral 84 - 3,981 7,814 8,882 5.8 6.2 5.0 6.7 16.9 12.5 2.9 2.4 18.0 21.0 0.4 0.4

Capital Goods

ABB* Sell 600 501 12,719 7,521 8,107 5.8 6.8 7.7 12.9 78.0 46.5 4.9 4.7 6.3 10.3 1.7 1.5

BGR Energy Accumulate 105 120 755 3,883 3,987 11.5 10.7 23.1 22.6 4.5 4.6 0.6 0.5 23.6 18.9 0.5 0.4

BHEL Neutral 161 - 39,308 41,082 37,867 13.1 12.0 16.2 13.1 9.9 12.3 1.8 1.6 18.8 13.8 0.8 0.9

Blue Star Buy 140 193 1,260 2,941 3,099 3.4 4.2 6.0 9.3 23.4 15.1 2.9 2.5 12.9 18.0 0.5 0.5

Crompton Greaves Buy 117 140 7,361 13,246 14,863 5.2 6.6 4.6 7.7 25.8 15.2 2.0 1.8 8.0 12.5 0.7 0.6

Jyoti Structures Neutral 27 - 224 3,264 3,537 9.5 9.0 7.2 8.3 3.8 3.3 0.3 0.3 8.9 9.4 0.3 0.3

KEC International Buy 54 62 1,377 7,709 8,507 6.2 7.0 4.7 7.3 11.4 7.3 1.1 1.0 15.3 15.3 0.4 0.3

Thermax Neutral 634 - 7,550 5,284 6,241 9.1 9.8 25.1 31.8 25.2 19.9 3.7 3.2 15.2 17.2 1.4 1.2

Cement

ACC Buy 1,008 1,225 18,926 11,358 12,649 15.4 17.3 52.8 69.9 19.1 14.4 2.4 2.2 13.0 15.9 1.4 1.2


February 06, 2014

Market Outlook

Stock Watch



Cement

Ambuja Cements Neutral 155 - 23,969 9,259 10,671 19.1 21.8 7.4 9.2 20.9 16.9 2.6 2.4 12.6 14.5 2.1 1.7

India Cements Neutral 52 - 1,597 4,507 5,129 10.8 11.8 0.8 3.9 65.0 13.3 0.5 0.5 0.7 3.4 0.9 0.7

J K Lakshmi Cement Buy 66 79 781 1,977 2,313 15.3 17.7 7.0 9.9 9.4 6.7 0.6 0.6 6.4 8.4 0.6 1.1

Ramco Cements Neutral 164 - 3,906 3,722 4,382 17.4 19.0 6.9 12.1 23.7 13.6 1.6 1.4 6.8 10.9 1.8 1.5

Shree Cement^ Neutral 4,336 - 15,106 5,741 6,648 23.7 23.9 208.0 270.3 20.9 16.0 3.4 2.9 17.4 19.3 2.3 1.9

UltraTech Cement Neutral 1,677 - 45,982 19,983 23,360 18.2 18.1 67.3 75.8 24.9 22.1 2.7 2.5 11.5 11.8 2.3 2.2

Construction

Ashoka Buildcon Buy 59 74 924 1,912 2,131 21.0 21.5 5.0 5.5 11.7 10.7 0.8 0.8 8.8 7.6 1.8 1.8

Consolidated Co Neutral 2 - 44 1,715 1,824 2.4 6.2 (2.9) (0.4) 0.1 0.1 0.5 0.4

IRB Infra Buy 74 106 2,469 3,740 4,120 46.4 46.4 14.5 15.8 5.1 4.7 0.7 0.6 14.5 15.8 2.9 3.2

ITNL Buy 115 156 2,243 7,423 7,970 29.2 30.4 30.1 32.3 3.8 3.6 0.5 0.5 14.9 14.2 2.4 2.5

IVRCL Infra Neutral 11 - 351 5,440 5,931 7.7 7.7 (2.5) (2.1) 0.2 0.2 0.6 0.6

Jaiprakash Asso. Neutral 39 - 8,632 13,238 15,218 26.9 26.9 1.6 2.5 24.9 15.5 0.6 0.6 2.6 4.0 2.5 2.3

Larsen & Toubro Buy 984 1,237 91,144 66,667 74,669 10.0 10.0 46.9 52.0 21.0 18.9 2.9 2.6 14.2 14.5 1.5 1.4

Nagarjuna Const. Buy 25 39 636 6,044 6,533 8.0 8.0 2.4 2.6 10.4 9.5 0.3 0.3 2.5 2.6 0.5 0.5

Punj Lloyd Neutral 27 - 898 12,726 14,226 8.2 8.2 0.9 1.0 31.5 26.5 0.3 0.3 1.0 1.2 0.6 0.6

Sadbhav Engg. Buy 84 99 1,277 2,458 2,727 10.6 10.6 4.6 5.4 18.3 15.7 1.4 1.3 8.1 8.7 0.8 0.7

Simplex Infra Neutral 82 - 405 6,237 6,908 9.1 9.0 9.9 13.9 8.3 5.9 0.3 0.3 3.7 5.0 0.5 0.5

Unity Infra Neutral 21 - 156 2,179 2,359 12.9 13.0 9.3 9.5 2.3 2.2 0.2 0.2 7.9 7.6 0.7 0.7

Financials

Allahabad Bank Neutral 77 - 4,215 7,579 7,462 2.5 2.5 24.9 27.5 3.1 2.8 0.5 0.4 12.1 11.9 - -

Andhra Bank Neutral 56 - 3,302 5,169 5,485 2.6 2.5 10.3 13.9 5.4 4.0 0.5 0.4 6.9 8.7 - -

Axis Bank Buy 1,121 1,461 52,618 18,955 21,663 3.4 3.4 128.0 148.2 8.8 7.6 1.4 1.2 16.9 17.2 - -

Bank of Baroda Accumulate 542 597 23,294 15,974 17,895 2.1 2.2 107.8 122.1 5.0 4.4 0.7 0.6 13.6 13.8 - -

Bank of India Buy 184 219 11,821 15,082 16,656 2.2 2.1 45.8 56.2 4.0 3.3 0.5 0.4 12.1 13.2 - -

Canara Bank Neutral 222 - 10,242 12,414 13,429 2.0 2.0 49.7 53.6 4.5 4.2 0.5 0.4 9.6 9.5 - -

Central Bank Neutral 46 - 6,151 7,918 8,793 2.3 2.3 (7.9) 9.4 4.9 0.7 0.6 (8.7) 9.7 - -

Corporation Bank Neutral 250 - 4,184 5,602 6,056 1.9 1.9 53.5 77.8 4.7 3.2 0.5 0.4 8.9 11.6 - -

Dena Bank Neutral 53 - 2,505 3,377 3,570 2.3 2.4 13.2 14.5 4.1 3.7 0.4 0.4 11.2 10.6 - -

Federal Bank Accumulate 77 87 6,561 2,838 3,135 3.0 3.0 8.9 10.1 8.7 7.6 0.9 0.9 11.4 11.9 - -

HDFC Neutral 786 - 122,537 8,153 9,631 3.4 3.4 35.2 41.5 22.3 19.0 4.4 4.0 28.3 28.6 - -


February 06, 2014

Market Outlook

Stock Watch



Financials

HDFC Bank Accumulate 637 730 152,693 26,614 32,019 4.4 4.4 35.8 45.3 17.8 14.1 3.5 3.0 21.6 22.9 - -

ICICI Bank Buy 966 1,220 111,562 26,609 30,636 3.2 3.3 84.1 96.9 11.5 10.0 1.5 1.4 15.0 15.4 - -

IDBI Bank Neutral 55 - 8,854 9,282 10,426 1.9 2.0 8.6 16.0 6.4 3.5 0.4 0.4 6.6 11.0 - -

Indian Bank Accumulate 98 112 4,201 5,845 6,147 2.6 2.6 27.3 30.7 3.6 3.2 0.4 0.4 11.2 11.5 - -

IOB Accumulate 45 52 5,238 7,898 8,559 2.3 2.3 6.0 13.2 7.6 3.4 0.4 0.4 5.3 10.4 - -

J & K Bank Accumulate 1,349 1,449 6,539 3,195 3,571 3.9 4.0 254.8 245.7 5.3 5.5 1.1 1.0 23.2 19.0 - -

LIC Housing Finance Buy 193 224 9,737 2,063 2,507 2.3 2.3 24.5 28.9 7.9 6.7 1.3 1.2 17.7 18.2 - -

Oriental Bank Neutral 169 - 5,078 6,848 7,382 2.6 2.6 42.1 49.9 4.0 3.4 0.4 0.4 10.0 10.8 - -

Punjab Natl.Bank Buy 560 657 20,287 20,760 23,179 3.4 3.4 99.1 145.6 5.7 3.9 0.7 0.6 10.9 14.4 - -

South Ind.Bank Buy 20 24 2,684 1,773 1,954 2.7 2.6 3.9 4.0 5.1 5.0 0.9 0.8 17.0 15.3 - -

St Bk of India Buy 1,521 1,867 105,755 66,539 75,419 3.1 3.1 171.1 235.8 8.9 6.5 1.1 1.0 11.7 14.5 - -

Syndicate Bank Neutral 84 - 5,222 6,783 7,421 2.5 2.4 26.8 21.7 3.1 3.9 0.5 0.4 16.2 11.7 - -

UCO Bank Accumulate 65 74 4,873 7,241 8,008 3.0 3.0 18.6 20.6 3.5 3.2 0.7 0.6 17.8 17.2 - -

Union Bank Accumulate 106 111 6,656 10,669 11,798 2.4 2.3 24.3 35.1 4.4 3.0 0.4 0.4 9.3 12.1 - -

Vijaya Bank Neutral 36 - 1,991 2,929 2,997 1.9 1.8 6.4 7.7 5.7 4.7 0.5 0.5 8.1 8.9 - -

Yes Bank Buy 303 385 10,934 4,405 5,222 2.7 2.9 44.9 50.0 6.8 6.1 1.5 1.3 24.9 22.7 - -

FMCG

Asian Paints Neutral 484 - 46,416 12,473 14,581 15.8 16.0 13.2 15.7 36.7 30.9 11.3 9.0 33.7 32.4 3.6 3.1

Britannia Accumulate 868 945 10,405 6,470 7,339 8.9 9.2 33.7 40.1 25.8 21.6 11.2 8.1 51.5 43.4 1.6 1.4

Colgate Neutral 1,321 - 17,959 3,588 4,165 17.6 17.7 37.2 43.5 35.5 30.4 31.1 25.9 94.9 92.9 4.9 4.2

Dabur India Neutral 173 - 30,168 7,074 8,135 16.8 17.1 5.3 6.3 32.6 27.5 11.4 9.1 39.0 36.8 4.3 3.7

GlaxoSmith Con* Neutral 4,356 - 18,321 3,603 4,259 13.8 16.6 119.6 149.8 36.4 29.1 11.2 9.0 33.8 34.3 4.6 3.8

Godrej Consumer Neutral 722 - 24,558 7,801 9,094 15.0 15.5 23.0 28.4 31.3 25.4 6.3 5.3 23.1 23.7 3.3 2.8

HUL Neutral 570 - 123,270 27,612 30,844 13.9 13.7 16.9 18.2 33.7 31.4 30.9 22.8 109.8 83.7 4.3 3.8

ITC Buy 319 382 253,253 32,945 38,295 36.3 36.9 11.0 12.8 29.0 24.9 9.4 7.7 35.4 34.0 7.4 6.3

Marico Buy 220 254 14,187 4,738 5,406 15.8 15.6 7.4 8.6 29.9 25.7 5.9 4.9 21.6 20.8 3.0 2.6

Nestle* Neutral 5,012 - 48,323 9,190 10,590 21.9 22.5 119.1 146.4 42.1 34.2 20.3 14.9 55.0 50.2 5.3 4.5

Tata Global Neutral 143 - 8,846 7,761 8,615 9.6 10.5 6.8 9.2 21.1 15.5 2.2 2.1 10.4 10.3 1.1 1.0

IT

HCL Tech^ Accumulate 1,394 1,510 97,455 33,340 37,907 25.8 24.8 86.0 95.8 16.2 14.6 5.0 3.8 31.1 26.8 2.7 2.2

Hexaware* Accumulate 130 142 3,888 2,297 2,727 22.7 22.8 12.6 14.2 10.3 9.2 2.6 2.2 25.6 24.5 1.6 1.3


February 06, 2014

Market Outlook

Stock Watch



IT

Infosys Neutral 3,582 - 205,666 50,545 57,612 27.2 26.4 184.8 213.3 19.4 16.8 4.1 3.5 21.7 20.5 3.4 2.9

Infotech Enterprises Neutral 347 - 3,880 2,203 2,559 19.3 19.1 26.0 29.4 13.3 11.8 2.5 2.1 18.6 17.9 1.4 1.2

KPIT Cummins Neutral 162 - 3,139 2,692 3,050 15.7 16.6 12.8 16.3 12.7 10.0 2.2 1.8 19.5 19.7 1.1 0.9

Mindtree Accumulate 1,425 1,620 5,931 3,020 3,513 19.8 19.9 109.2 125.2 13.1 11.4 3.3 2.6 26.1 23.2 1.7 1.3

Mphasis& Buy 380 455 7,984 6,666 7,134 18.0 18.4 39.7 45.3 9.6 8.4 1.4 1.2 14.8 14.6 0.8 0.7

NIIT Neutral 25 - 415 984 1,066 7.1 7.0 2.0 4.0 12.4 6.3 0.6 0.6 5.1 9.4 0.2 0.1

Persistent Accumulate 944 1,060 3,778 1,674 1,971 25.8 26.2 63.8 79.7 14.8 11.9 3.0 2.4 20.3 20.5 1.9 1.5

TCS Buy 2,191 2,625 429,167 82,169 97,331 30.8 30.2 96.6 114.6 22.7 19.1 9.3 7.7 41.2 40.1 5.1 4.2

Tech Mahindra Accumulate 1,838 1,955 42,876 18,775 21,671 22.3 22.5 126.8 134.8 14.5 13.6 4.6 3.5 29.5 25.7 2.1 1.7

Wipro Buy 560 660 138,028 43,764 50,307 22.7 23.7 31.4 37.8 17.8 14.8 4.1 3.3 22.5 22.2 2.7 2.2

Media

D B Corp Accumulate 310 340 5,678 1,876 2,086 27.1 27.7 16.8 19.2 18.4 16.1 5.5 4.6 27.1 25.8 2.9 2.6

HT Media Buy 74 95 1,730 2,188 2,360 14.5 15.0 8.8 9.3 8.4 7.9 1.1 1.0 12.2 11.5 0.4 0.3

Jagran Prakashan Buy 88 114 2,932 1,692 1,867 21.9 23.7 7.7 8.1 11.4 11.0 2.7 2.4 24.8 23.0 1.8 1.6

PVR Neutral 536 - 2,141 1,397 1,717 17.5 17.7 18.5 24.3 29.0 22.1 3.1 2.8 11.0 13.3 1.9 1.6

Sun TV Network Neutral 363 - 14,307 2,287 2,580 68.3 69.7 19.5 23.5 18.6 15.5 4.5 4.0 25.8 27.7 5.9 5.1

Metals & Mining

Bhushan Steel Neutral 456 - 10,338 9,407 12,737 32.2 36.9 19.4 48.5 23.5 9.4 1.0 0.9 4.5 10.4 3.8 2.8

Coal India Accumulate 255 290 161,130 69,854 74,994 26.9 29.7 23.8 27.6 10.7 9.2 2.5 2.1 30.0 32.1 1.4 1.3

Electrosteel Castings Accumulate 14 15 481 1,976 2,017 11.8 12.7 0.1 1.2 139.8 11.7 0.1 0.1 0.1 1.9 0.7 0.1

GMDC Buy 110 131 3,484 1,477 1,890 42.2 46.4 13.5 18.7 8.1 5.9 1.3 1.1 16.4 19.9 2.1 1.5

Hind. Zinc Buy 124 154 52,436 12,863 13,835 54.3 52.4 16.3 17.2 7.6 7.2 1.4 1.2 19.7 17.9 1.9 1.4

Hindalco Neutral 104 - 21,565 90,332 103,186 8.6 9.6 11.2 15.5 9.3 6.7 0.6 0.5 6.0 7.8 0.7 0.7

JSW Steel Neutral 845 - 20,429 46,117 48,969 19.5 19.5 86.6 98.0 9.8 8.6 1.2 1.1 12.2 13.0 1.0 0.9

MOIL Accumulate 216 247 3,626 1,027 1,069 42.0 46.0 25.6 27.5 8.4 7.9 1.2 1.1 14.7 14.1 1.1 1.1

Monnet Ispat Buy 80 120 510 2,041 2,475 22.2 18.9 30.5 27.5 2.6 2.9 0.2 0.2 7.2 6.1 1.9 1.5

Nalco Neutral 33 - 8,492 6,655 7,094 13.2 14.3 2.5 2.8 13.4 11.8 0.7 0.7 5.2 5.8 0.5 0.4

NMDC Accumulate 140 151 55,645 11,334 12,043 67.5 65.5 16.5 16.9 8.5 8.3 1.8 1.6 21.8 20.6 2.9 2.6

SAIL Sell 62 51 25,544 46,017 51,344 9.0 9.7 4.1 5.0 15.1 12.4 0.6 0.6 6.2 4.8 1.1 1.1

Sesa Sterlite Neutral 185 - 54,758 66,982 72,995 34.1 33.8 18.1 20.5 10.2 9.0 0.5 0.5 7.0 5.8 1.3 1.1

Tata Steel Buy 359 461 34,891 153,787 167,041 9.8 10.1 40.4 47.6 8.9 7.6 0.9 0.9 11.0 11.8 0.5 0.5


February 06, 2014

Market Outlook

Stock Watch



Metals & Mining

Sarda Buy 98 138 352 1,096 1,134 16.8 17.3 21.8 23.5 4.5 4.2 0.4 0.3 8.2 8.2 0.4 0.3

Prakash Industries Buy 34 42 459 2,076 2,060 15.0 16.9 9.5 11.4 3.6 3.0 0.2 0.2 6.5 7.3 0.5 0.5Godawari Power and Ispat Buy 73 100 240 2,413 2,745 14.9 16.1 29.2 39.1 2.5 1.9 0.2 0.2 9.5 11.5 0.8 0.7

Oil & Gas

Cairn India Buy 325 384 62,018 19,470 19,621 73.0 63.4 63.4 61.9 5.1 5.2 1.1 0.9 23.1 19.0 2.0 1.7

GAIL Neutral 360 - 45,722 60,768 66,123 12.5 11.4 34.9 34.7 10.3 10.4 1.7 1.5 17.1 15.0 0.8 0.7

ONGC Buy 270 318 231,127 181,003 204,096 30.7 35.8 30.0 39.6 9.0 6.8 1.4 1.2 16.0 18.8 1.1 0.9

Reliance Industries Buy 816 1,017 263,752 448,345 494,295 7.3 7.0 74.0 79.5 11.0 10.3 1.2 1.1 11.5 11.2 0.6 0.5

Gujarat Gas* Neutral 234 - 3,004 3,270 3,467 16.5 14.1 29.0 26.3 8.1 8.9 2.6 2.4 35.2 28.1 0.8 0.6

Indraprastha Gas Neutral 265 - 3,709 4,488 5,418 17.6 15.5 25.7 27.4 10.3 9.7 2.1 1.8 22.1 20.3 0.8 0.6

Petronet LNG Neutral 115 - 8,629 37,312 43,463 4.2 4.4 9.7 10.7 11.9 10.7 1.7 1.5 15.3 15.0 0.3 0.3Gujarat State Petronet Ltd. Buy 58 70 3,264 1,119 1,009 91.4 91.5 9.0 7.8 6.4 7.4 1.0 0.9 16.1 12.4 2.4 2.6

Pharmaceuticals

Alembic Pharma Neutral 221 - 4,173 1,736 2,008 17.1 18.9 10.5 13.8 21.1 16.0 6.5 4.9 34.4 34.7 2.5 2.1

Aurobindo Pharma Neutral 491 - 14,306 7,166 11,214 18.5 14.1 28.0 32.3 17.5 15.2 4.2 3.3 27.1 24.3 2.4 1.8

Aventis* Neutral 2,775 - 6,391 1,682 1,917 15.6 15.6 94.8 104.7 29.3 26.5 4.2 3.5 16.1 17.6 3.3 2.7

Cadila Healthcare Neutral 852 - 17,438 7,123 8,367 15.5 15.7 37.3 44.7 22.8 19.1 4.8 4.0 22.9 22.9 2.8 2.4

Cipla Buy 415 504 33,337 9,274 10,796 23.1 23.1 21.0 23.8 19.8 17.5 3.2 2.7 17.2 16.8 3.3 2.8

Dr Reddy's Buy 2,597 3,008 44,155 13,617 15,590 24.8 24.3 144.4 161.6 18.0 16.1 4.7 3.7 29.2 25.7 3.3 2.8

Dishman Pharma Buy 87 140 705 1,394 1,534 22.5 22.4 14.8 16.6 5.9 5.3 0.6 0.6 10.8 11.0 1.1 0.9

GSK Pharma* Neutral 2,982 - 25,260 2,548 2,752 20.0 21.2 58.4 64.4 51.1 46.3 12.6 12.2 24.6 26.8 9.1 8.4

Indoco Remedies Neutral 123 - 1,133 747 906 15.3 16.0 5.9 8.1 20.8 15.2 2.5 2.2 12.5 15.4 1.7 1.5

Ipca labs Neutral 813 - 10,263 3,296 4,087 23.5 23.5 42.8 52.7 19.0 15.4 5.1 3.9 30.1 28.4 3.2 2.6

Lupin Accumulate 915 1,007 41,019 11,813 14,377 23.8 23.8 39.9 48.8 22.9 18.8 6.0 4.7 29.8 28.1 3.5 2.8

Ranbaxy* Neutral 340 - 14,411 10,400 11,331 6.6 8.4 11.4 15.2 29.8 22.4 3.2 2.8 11.1 13.1 1.5 1.3

Sun Pharma Neutral 584 - 121,004 14,306 16,236 43.0 42.0 25.6 25.8 22.8 22.7 7.6 5.9 35.3 29.0 8.1 6.8

Power

GIPCL Neutral 56 - 845 1,298 1,319 31.9 32.5 9.9 11.4 5.7 4.9 0.5 0.5 9.0 9.7 0.8 0.6

NTPC Accumulate 133 146 109,294 73,564 78,676 24.7 23.7 13.1 12.8 10.1 10.4 1.2 1.2 12.7 11.6 2.2 2.2

Real Estate

DLF Buy 138 179 24,575 8,293 9,622 36.5 36.1 5.7 6.7 24.2 20.5 0.9 0.8 3.7 4.1 5.1 4.2

MLIFE Buy 364 478 1,487 888 1,002 27.0 29.9 33.9 42.1 10.7 8.7 1.1 1.0 9.9 11.2 2.3 2.0

Telecom

Bharti Airtel Accumulate 314 345 125,698 86,199 94,347 32.1 32.5 7.2 14.1 43.4 22.3 2.3 2.1 5.4 9.7 2.1 1.9


February 06, 2014

Market Outlook

Stock Watch



Telecom

Idea Cellular Neutral 144 - 47,856 26,232 28,312 31.3 31.6 5.6 6.9 25.6 21.0 2.9 2.6 11.4 12.2 2.2 2.0

Rcom Neutral 125 - 25,873 21,818 24,183 33.0 33.7 3.6 5.9 34.7 21.3 0.8 0.7 2.2 3.4 3.0 2.5

zOthers

Abbott India* Neutral 1,673 - 3,555 1,788 1,996 12.5 12.7 71.7 81.4 23.3 20.6 4.7 4.1 21.7 21.2 1.8 1.5

Bajaj Electricals Neutral 215 - 2,148 3,885 4,472 4.0 5.8 6.8 15.4 31.9 14.0 2.8 2.4 8.8 17.3 0.6 0.5

Cera Sanitaryware Neutral 777 - 984 647 836 13.5 13.4 40.4 51.1 19.2 15.2 4.4 3.5 25.4 25.6 1.5 1.2

Cravatex Neutral 200 - 52 248 284 6.5 7.3 27.2 38.2 7.4 5.3 1.2 1.0 15.7 18.5 0.4 0.3

Finolex Cables Neutral 86 - 1,317 2,573 2,908 10.2 10.2 10.7 12.4 8.1 7.0 1.2 1.0 15.0 14.8 0.4 0.4

Goodyear India* Accumulate 350 383 807 1,581 1,724 8.9 8.7 38.8 41.2 9.0 8.5 1.9 1.6 23.0 20.6 0.3 0.3

Hitachi Neutral 145 - 395 1,080 1,199 8.9 9.1 8.5 14.2 17.1 10.2 1.6 1.4 9.4 14.2 0.5 0.4

Honeywell Automation* Neutral 2,610 - 2,308 1,842 2,131 5.8 6.0 82.5 100.4 31.6 26.0 3.1 2.8 10.1 11.2 1.2 1.0

IFB Agro Buy 198 249 178 504 580 10.6 11.2 32.6 39.9 6.1 5.0 0.9 0.8 17.3 17.8 0.2 0.2

ITD Cementation Buy 142 189 163 1,313 1,444 10.6 11.2 7.9 26.2 17.9 5.4 0.4 0.4 2.3 7.2 0.5 0.5

Jyothy Laboratories Neutral 207 - 3,752 1,244 1,523 13.6 13.9 5.6 9.3 37.2 22.4 3.5 3.0 11.2 14.4 3.2 2.5

MRF Neutral 19,855 - 8,421 13,240 14,229 13.9 13.8 2,061.1 2,269.5 9.6 8.8 1.9 1.5 21.4 19.3 0.7 0.6

Page Industries Neutral 5,610 - 6,257 1,102 1,348 20.3 20.2 136.0 165.4 41.3 33.9 21.3 15.4 59.8 52.6 5.8 4.7

Relaxo Footwears Neutral 264 - 1,586 1,125 1,300 11.3 12.0 9.5 12.8 27.7 20.6 6.2 5.0 24.3 26.6 1.6 1.3

Siyaram Silk Mills Buy 273 319 256 1,216 1,396 10.8 11.0 65.3 79.8 4.2 3.4 0.7 0.6 18.0 18.7 0.4 0.4

Styrolution ABS India* Buy 402 492 707 1,007 1,108 8.3 8.7 30.0 35.1 13.4 11.4 1.5 1.3 11.5 12.2 0.7 0.6

TAJ GVK Buy 58 108 364 300 319 35.8 36.2 7.9 9.1 7.4 6.4 1.0 0.9 13.9 14.4 1.5 1.3

Tata Sponge Iron Accumulate 369 405 568 735 836 14.7 16.2 50.1 63.5 7.4 5.8 0.8 0.7 11.5 13.2 0.3 0.2

TTK Healthcare Neutral 505 - 392 416 475 4.8 6.5 16.3 25.2 31.0 20.1 3.8 3.4 12.6 18.0 0.8 0.7

Tree House Buy 226 313 838 154 206 54.1 54.9 12.5 17.4 18.1 13.0 2.2 1.9 12.2 15.0 5.2 3.7

TVS Srichakra Buy 259 309 198 1,594 1,723 6.0 6.0 36.9 44.2 7.0 5.9 1.0 0.9 15.5 16.3 0.2 0.2

United Spirits Neutral 2,504 - 36,389 11,446 12,934 12.0 12.0 20.3 43.0 123.4 58.2 4.2 3.9 4.4 6.9 3.5 3.1

Vesuvius India* Neutral 438 - 890 600 638 20.1 19.4 35.7 36.6 12.3 12.0 2.2 1.9 19.4 17.1 1.3 1.1

HSIL Buy 93 117 614 2,042 2,363 14.6 14.8 12.3 16.5 7.6 5.7 0.6 0.5 7.6 9.4 0.8 0.7

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on February 05, 2014


February 06, 2014

Market Outlook

Stock Watch

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

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