Market Outlook 040712

7/31/2019 Market Outlook 040712

1/13

Market OutlookJuly 3, 2012

www.angelbroking.com


Dealers Diary

The Indian markets are expected to edge higher, tracing positive opening in most

of the Asian bourses and the SGX Nifty. Asian shares are trading higher on

expectation that central banks across, may resort to monetary policy easing to spur

economic growth.

US markets showed a lack of direction over the course of the trading on Monday. A

disappointing manufacturing report from the Institute for Supply Management

generated some negative sentiment in morning trading, but selling pressure waned

amid optimism about the possibility of further stimulus from the Federal Reserve.

Extending their last week gains, the European markets edged higher on Monday

on continued optimism over the results of EU summit held last week.

Meanwhile, Indian markets ended the volatile trading session on Monday slightly

lower, as investors locked in some gains following the sharp rally on Friday. Global

cues remained firm on continued optimism over the European pact which helped

limit the downside to some extent. On the domestic front, activity in the Indian

manufacturing sector increased at a steady pace in June however Indian exportsfell by 4.2% for the month of May.

Markets TodayThe trend deciding level for the day is 17,416 / 5,281 levels. If NIFTY trades above

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

up to 17,469 17,540 / 5,299 5,320 levels. However, if NIFTY trades below

17,416 / 5,281 levels for the first half-an-hour of trade then it may correct up to

17,346 17,293 / 5,261 5,243 levels.

SENSEX 17,293 17,346 17,416 17,469 17,540

NIFTY 5,243 5,261 5,281 5,299 5,320

News Analysis Auto sales numbers June 2012 Cement dispatches June 2012 UP government hikes commercial tax on cigarette and gutkha to 50% ICICI bank sells off its KFA debt worth `430crRefer detailed news analysis on the following page

Net Inflows (June 29, 2012)

FII 2,065 3,155 (1089) (928) 41,010

MFs 717 580 137 621 (5,845)

FII Derivatives (July 2, 2012)

Index Futures 985 1,027 (42) 12,874

Stock Futures 1,329 1,381 (52) 23,552

Gainers / Losers

Adani Enter 232 4.2 Jindal Steel 458 (2.5)

JUBL FOOD 1,214 4.1 Ashok Leyland 24 (2.4)

Punj Lloyd 51 4.1 JPPOWER 34 (1.9)

Lanco Infra 15 3.6 Manappuram Fin 31 (1.8)

Britannia Inds 543 3.5 HPCL 330 (1.7)

BSE Sensex (0.2) (31.0) 17,399

Nifty (0.0) (0.3) 5,279

MID CAP 0.9 55.5 6,209

SMALL CAP 1.1 71.5 6,615

BSE HC 0.3 21.2 6,905

BSE PSU 0.7 53.7 7,312

BANKEX 0.7 79.0 11,988

AUTO (0.6) (52.5) 9,405

METAL 0.6 65.5 10,851

OIL & GAS 0.2 19.3 8,095

BSE IT (0.3) (15.7) 5,749

Dow Jones (0.1) (8.7) 12,871NASDAQ 0.6 16.2 2,951

FTSE 1.3 69.5 5,641

Nikkei (0.0) (3.3) 9,003

Hang Seng 0.0 0.0 19,441

Straits Times 1.1 32.1 2,911

Shanghai Com 0.0 0.7 2,226

INFY 0.8 0.4 $45.4

WIT (1.2) (0.1) $9.1IBN 0.0 0.0 $32.4

HDB 1.3 0.4 $33.0

Advances 1,767 974

Declines 1,072 482

Unchanged 105 56

BSE 1,979

NSE 9,739


2/13



BJAUT reported below-par volumes for June 2012, posting a 6% yoy (2% mom)decline to 345,162 units, led by weakness in export sales. Total domestic sales

posted 2% yoy (3.4% mom) growth to 229,100 units, led by growth in three-

wheeler volumes. Total motorcycle sales declined by 1.4% yoy (1.1% mom), led by

subdued domestic demand and lower sales in Sri Lanka where dispatches have

been lower since the Sri Lankan government raised import taxes on two-wheelers.

Total three-wheeler sales fell sharply by 38.9% yoy (11.6% mom) mainly on

account of disruption in production in Egypt (lost ~5,000 units) and slowdown in

sales in Sri Lanka (lost ~10,000 units) where the government increased the import

duty on three-wheelers. Exports posted an 18.3% yoy (11.1% mom) decline during

the month to 116,062 units. Meanwhile, management is optimistic that exports to

Egypt and Sri Lanka will return to normal levels from July 2012 and expects export

volumes of 35,000-40,000 units going ahead.

HMCL posted a 4.3% yoy (down 4.1% mom) growth in total volumes to 534,091

units led by healthy momentum across its major brands Passion and Splendor.

Going ahead, with new product launches and foray into new international

markets, HMCL intends to maintain its healthy growth momentum.

MSIL reported slightly better-than-expected sales volume of 96,597 units, reporting

20.3% yoy growth (down 2.3% mom), led by 19.3% (down 6.6% mom) and 27.1%

(38.9% mom) yoy growth in domestic and export volumes, respectively. Domestic

sales growth during the month, however, was higher on account of low base effect

(volume in June 2011 was impacted by labor strike). Domestic volumes continued

to be driven by the success of the new launches, Swift, Dzire and Ertiga. Sales in

the mini segment remained lackluster, declining by 10.4% yoy, as lack of diesel

variants continues to hurt the segments sales.

ACC registered a modest 2.6% yoy growth in its dispatches in June 2012 to

1.97mn tonnes. For 1QFY2013 as whole, the companys dispatches rose by 2.2%

yoy. Ambuja Cements posted 7.2% yoy growth in its June 2012 dispatches. The

performance for the month is leaner as compared to the 10.2% yoy dispatches

growth reported by the company in May 2012. In all, the company posted 5.6%

yoy growth in its dispatches during 1QFY2013.


3/13



The Uttar Pradesh (UP) government has hiked the commercial tax on cigarettes

and gutkha from 12.5% to 50%. In all, the company has taken price hikes of

~12% YTD in FY2013, and we expect ITC to pass on this hike in tax to consumers.

We believe this move is marginally negative for the stock as it would impact

cigarette volumes, considering that tax on beedis has been kept unchanged.

ICICI Bank has sold off its entire debt exposure of `430cr in Kingfisher Airlines

(KFA) to Kolkata-based Srei Infrastructure Finance. The bank has recovered the

entire amount of `430cr and currently does not have any outstanding exposure to

the troubled airlines. The bank has been cleaning up its balance sheet over the last

2-3 years and the sale of debt of KFA is one more step in this direction.

ICICI Bank still has 3% stake in KFA on which it is expected to suffer marginal

investment losses of `8cr in 1QFY2013, as the share price has depreciated further

over the course of the quarter.

At the CMP, the stock is trading at a multiple of 1.4x ABV and

Economic and Political News

Mutual Fund industry wants investors to bear service tax burden Oil cos. loss on diesel, LPG sale halve on falling global rates June PMI highest in last four months

Corporate News

SIAM announces voluntary vehicle recall policy Tata power uses cheaper coal to cut costs at Mundra project NCL to invest `150cr in captive power plantSource: Economic Times, Business Standard, Business Line, Financial Express, Mint


4/13

Global economic events release calendar

Date Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

Jul 4 2012 12:00AM Germany PMI Services Value JUN F 50.30 50.30

Jul 5 2012 12:00AM US Initial Jobless claims Thousands JUN 30 386.00 385.00UK BOE Announces rates % Ratio JUL 5 0.50 0.50

Euro Zone ECB announces interest rates % JUL 5 1.00 0.75

Jul 6 2012 12:00AM US Change in Nonfarm payrolls Thousands JUN 69.00 90.00

US Unnemployment rate % JUN 8.20 8.20

Jul 9 2012 12:00AM China Consumer Price Index (YoY) % Change JUN 3.00 2.30

Jul 10 2012 12:00AM UK Industrial Production (YoY) % Change MAY (1.00) --

China Exports YoY% % Change JUN 15.30 10.10

Jul 12 2012 12:00AM India Industrial Production YoY % Change MAY 0.10 --

Jul 13 2012 12:00AM IndiaMonthly Wholesale PricesYoY%

% Change JUN 7.55 --

US Producer Price Index (mom) % Change JUN (1.00) (0.70)

China Industrial Production (YoY) % Change JUN 9.60 10.00

China Real GDP (YoY) % Change 2Q 8.10 7.70

Jul 16 2012 12:00AM Euro Zone Euro-Zone CPI (YoY) % JUN 2.40 --

Jul 17 2012 12:00AM UK CPI (YoY) % Change JUN 2.80 --

US Industrial Production % JUN (0.09) --

US Consumer price index (mom) % Change JUN (0.30) --

Jul 18 2012 12:00AM US Housing Starts Thousands JUN 708.00 --

US Building permits Thousands JUN 784.00 --

UK Jobless claims change % Change JUN 8.10 --

Jul 19 2012 12:00AM US Existing home sales Millions JUN 4.55 --

Jul 23 2012 12:00AM Euro ZoneEuro-Zone ConsumerConfidence

Value JUL A (19.80) --

Jul 24 2012 12:00AM Germany PMI Manufacturing Value JUL A 45.00 --

Jul 25 2012 12:00AM UK GDP (YoY) % Change 2Q A (0.20) --

US New home sales Thousands JUN 369.00 --

Jul 27 2012 12:00AM US GDP Qoq (Annualised) % Change 2Q A 1.90 --

Jul 31 2012 12:00AM US Consumer ConfidenceS.A./

1985=100JUL 62.00 --

Germany Unemployment change (000's) Thousands JUL 7.00 --

India RBI Repo rate % JUL 31 8.00 --

India RBI Cash Reserve ratio % JUL 31 4.75 --

India RBI Reverse Repo rate % JUL 31 7.00 --

Aug 1 2012 12:00AM India Imports YoY% % Change JUN (7.36) --

India Exports YoY% % Change JUN (4.16) --

UK PMI Manufacturing Value JUL 48.60 --

China PMI Manufacturing Value JUL 50.20 --

US FOMC rate decision % AUG 1 0.25 --

Source: Bloomberg, Angel Research


July 03, 2012

Market Outlook


5/13

Market StrategyJuly 3, 2012


Macro watch

Exhibit1:

5.9

7.5

9.8

7.4

9.4

8.5

7.68.2

9.2

8.0

6.76.1

5.3

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

(%)

Source: CSO, Angel Research

Exhibit2:

6.2

9.5

3.7 3.42.5

(5.0)

6.0

2.7

1.0

4.1

(3.2)

0.1

(6.0)

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

12.0

May-1

1

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

Apr-

12

(%)

Source: MOSPI, Angel Research

Exhibit3:

9.5 9.4 9.810.0 9.9 9.5

7.76.9

7.4 7.7 7.2 7.6

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

Apr-

12

May-1

2

(%)

Source: MOSPI, Angel Research

Exhibit4:

48.0

50.0

52.0

54.0

56.0

58.0

60.0

May-1

1

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

Apr-

12

May-1

2

Mfg. PMI Services PMI

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

Exhibit5:

(15.0)

0.0

15.0

30.0

45.0

60.0

75.0

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

Apr-

12

May-1

2

Exports yoy growth Imports yoy growth(%)

Source: Bloomberg, Angel Research

Exhibit6:

4.00

5.00

6.00

7.00

8.00

9.00

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

Apr-

12

May-1

2

Jun-1

2

Repo rate Reverse Repo rate CRR (%)

Source: RBI, Angel Research


6/13

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

( ) Price ( ) ( cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E

Agri / Agri Chemical

Rallis Neutral 140 - 2,723 1,432 1,647 14.7 14.7 7.0 8.0 20.0 17.5 4.2 3.6 22.8 22.3 1.9 1.6

United Phosphorus Buy 125 183 5,744 8,191 8,764 16.5 16.5 17.1 18.3 7.3 6.8 1.2 1.0 17.5 16.2 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Accumulate 309 345 2,642 2,715 3,041 15.3 15.3 29.2 32.8 10.6 9.4 2.5 2.0 26.0 23.3 0.9 0.8

Apollo Tyres Buy 79 100 3,997 13,699 15,184 10.5 10.2 12.1 13.3 6.6 6.0 1.2 1.0 19.7 18.4 0.5 0.4

Ashok Leyland Buy 24 33 6,505 14,798 16,687 9.6 9.6 2.4 3.0 10.1 8.2 2.0 1.8 14.8 16.5 0.5 0.4

Automotive Axle Accumulate 452 514 682 1,211 1,387 12.1 11.7 50.3 57.1 9.0 7.9 2.3 1.8 27.8 25.7 0.6 0.5Bajaj Auto Buy 1,561 1,835 45,172 22,118 24,889 19.0 18.6 115.7 126.5 13.5 12.3 5.4 4.3 45.0 38.9 1.6 1.4

Bharat Forge Buy 300 372 6,978 7,173 7,998 16.3 16.5 22.3 26.6 13.4 11.3 2.6 2.2 21.0 21.0 1.1 0.9

Bosch India Neutral 9,046 - 28,405 9,390 10,716 19.5 19.1 420.2 471.4 21.5 19.2 5.0 4.2 23.3 21.8 2.8 2.4

CEAT Buy 99 164 337 5,067 5,631 8.0 7.6 39.4 41.0 2.5 2.4 0.4 0.4 18.8 16.5 0.3 0.3

Exide Industries Accumulate 137 146 11,624 5,787 6,595 15.5 17.0 7.1 9.0 19.2 15.3 3.4 2.9 18.6 20.3 1.7 1.4

FAG Bearings Accumulate 1,464 1,594 2,434 1,531 1,748 18.8 18.5 118.0 132.8 12.4 11.0 2.7 2.2 24.0 21.9 1.3 1.1

Hero Motocorp Neutral 2,114 - 42,219 26,106 29,296 15.0 15.2 140.3 148.1 15.1 14.3 7.1 5.5 54.8 43.3 1.3 1.1

JK Tyre Buy 94 135 386 7,950 8,904 5.5 6.0 25.1 38.6 3.8 2.4 0.4 0.4 12.1 16.4 0.3 0.3

Mahindra and Mahindra Buy 714 821 43,823 36,010 40,882 10.0 10.0 47.7 53.3 15.0 13.4 3.0 2.6 21.3 20.6 0.9 0.8

Maruti Buy 1,181 1,510 34,109 42,683 48,736 7.1 7.5 86.6 100.6 13.6 11.7 2.0 1.7 15.3 15.5 0.6 0.5

Motherson Sumi Buy 164 216 6,408 23,342 26,366 7.8 8.2 13.3 18.0 12.3 9.1 2.9 2.3 26.2 28.4 0.5 0.4

Subros Neutral 37 - 219 1,244 1,402 8.4 8.3 4.5 5.1 8.2 7.2 0.8 0.8 9.9 11.0 0.4 0.4

Tata Motors Buy 238 299 63,523 189,676 210,905 12.5 12.6 39.8 45.2 6.0 5.3 2.5 2.0 44.3 41.6 0.4 0.3

TVS Motor Buy 36 44 1,691 7,690 8,459 6.1 6.0 5.0 5.5 7.1 6.4 1.3 1.1 19.0 18.6 0.2 0.2

Capital Goods

ABB* Sell 804 498 17,044 8,760 10,023 7.6 7.5 18.2 20.7 44.1 38.8 5.9 5.3 14.4 14.6 1.9 1.7BGR Energy Neutral 308 - 2,223 4,195 4,837 11.0 11.0 30.1 32.4 10.2 9.5 1.8 1.6 18.4 17.6 1.0 1.0

BHEL Neutral 235 - 57,555 46,344 46,916 18.3 18.6 23.5 24.1 10.0 9.8 2.0 1.7 21.3 18.9 1.1 1.1

Blue Star Neutral 164 - 1,473 3,047 3,328 5.4 6.9 9.6 16.2 17.1 10.1 3.4 2.7 20.7 29.7 0.6 0.5

Crompton Greaves Buy 126 142 8,076 12,451 14,265 7.9 8.3 8.0 9.5 15.8 13.3 2.1 1.9 13.9 14.9 0.7 0.6

Jyoti Structures Buy 41 67 335 2,622 2,801 10.6 11.0 10.9 13.4 3.7 3.0 0.5 0.4 13.7 14.9 0.3 0.3

KEC International Buy 56 73 1,445 6,686 7,200 8.5 8.8 10.6 12.2 5.3 4.6 1.0 0.8 25.9 24.0 0.4 0.4

LMW Buy 1,635 1,992 1,841 2,369 2,727 11.7 11.7 143.4 166.0 11.4 9.9 1.9 1.7 17.4 18.4 0.3 0.2

Thermax Neutral 495 - 5,902 5,514 5,559 9.8 9.6 29.7 28.4 16.7 17.5 3.1 2.8 20.2 16.9 0.9 0.9


July 03, 2012

Market Outlook

Stock Watch


7/13



Cement

ACC Neutral 1,312 - 24,633 11,018 12,663 19.9 21.2 70.7 81.2 18.6 16.2 3.2 2.9 18.0 19.0 1.9 1.6

Ambuja Cements Neutral 176 - 27,033 10,035 11,504 23.5 23.8 10.1 10.6 17.4 16.6 3.4 3.1 18.5 19.4 2.3 1.9

India Cements Neutral 90 - 2,752 4,423 4,906 18.2 18.8 9.9 12.7 9.1 7.1 0.8 0.7 8.6 10.5 0.9 0.8

J K Lakshmi Cements Buy 70 79 858 1,938 2,246 19.1 20.1 14.6 16.1 4.8 4.4 0.6 0.6 13.4 13.6 0.6 0.9

Madras Cements Neutral 158 - 3,748 3,444 3,786 25.5 24.9 14.6 17.1 10.8 9.2 1.6 1.4 15.6 16.0 1.7 1.5

Shree Cements Neutral 3,101 - 10,802 5,465 6,249 24.3 23.7 151.5 222.1 20.5 14.0 4.9 4.2 21.6 25.8 1.6 1.3

UltraTech Cement Neutral 1,513 - 41,479 20,116 22,655 21.3 22.5 82.1 97.5 18.4 15.5 2.9 2.5 16.8 17.4 2.0 1.9Construction

Ashoka Buildcon Buy 216 273 1,137 2,014 2,293 22.4 22.4 22.6 26.7 9.6 8.1 1.0 0.9 11.4 11.9 2.4 2.7

Consolidated Co Neutral 16 - 293 2,489 2,755 7.0 7.8 3.0 4.0 5.3 4.0 0.5 0.4 8.7 10.8 0.3 0.3

Hind. Const. Neutral 21 - 1,295 4,239 4,522 11.1 11.8 (1.8) (0.8) (11.9) (27.4) 1.2 1.4 (9.5) (4.7) 1.3 1.2

IRB Infra Buy 132 166 4,396 3,821 4,582 42.3 40.2 15.0 16.9 8.8 7.8 1.3 1.2 16.1 15.8 2.7 2.5

ITNL Buy 189 265 3,674 6,619 7,925 23.8 23.3 22.9 27.8 8.3 6.8 1.2 1.0 15.5 16.4 2.2 2.1

IVRCL Infra Buy 53 61 1,427 5,510 6,722 8.8 9.0 2.5 4.6 21.1 11.7 0.7 0.7 3.4 5.8 0.7 0.7

Jaiprakash Asso. Buy 75 88 15,938 15,259 17,502 25.7 24.7 4.2 5.0 17.7 15.0 1.5 1.4 8.5 9.3 2.4 2.1

Larsen & Toubro Accumulate 1,399 1,553 85,752 59,559 69,089 12.1 11.5 78.4 85.2 17.9 16.4 3.0 2.6 16.1 15.3 1.6 1.4

Madhucon Proj Buy 37 56 270 2,206 2,502 10.7 10.7 4.6 4.7 7.9 7.8 0.4 0.4 5.2 5.0 0.7 0.7

Nagarjuna Const. Neutral 46 - 1,191 5,453 6,169 8.1 8.5 1.6 1.9 28.2 24.1 0.5 0.5 1.8 2.1 0.7 0.7

Patel Engg. Neutral 98 - 682 3,609 3,836 13.1 13.1 14.0 14.6 7.0 6.7 0.4 0.4 6.3 6.1 1.0 1.1

Punj Lloyd Neutral 51 - 1,694 11,592 12,993 8.4 8.4 1.8 3.2 28.3 15.9 0.6 0.5 2.0 3.4 0.6 0.6

Sadbhav Engg. Buy 149 182 2,243 2,789 3,147 10.6 10.7 8.4 10.4 17.7 14.3 2.4 2.1 15.0 15.6 0.9 0.9

Simplex Infra Buy 224 265 1,108 6,732 7,837 8.1 8.4 23.5 29.4 9.5 7.6 0.9 0.8 9.6 11.0 0.5 0.5

FinancialsAllahabad Bank Neutral 151 - 7,540 7,392 8,542 3.1 3.1 38.3 42.1 3.9 3.6 0.7 0.6 18.4 17.6 - -

Andhra Bank Neutral 118 - 6,623 5,151 5,843 3.2 3.1 22.4 25.7 5.3 4.6 0.8 0.7 15.8 16.0 - -

Axis Bank Buy 1,029 1,476 42,633 16,157 19,557 3.2 3.2 116.4 139.1 8.8 7.4 1.6 1.4 20.0 20.3 - -

Bank of Baroda Buy 728 925 28,491 15,993 18,918 2.6 2.6 127.3 149.9 5.7 4.9 1.0 0.8 17.8 18.2 - -

Bank of India Accumulate 348 389 19,976 13,558 15,551 2.5 2.4 61.6 70.8 5.7 4.9 0.9 0.8 16.8 16.9 - -

Bank of Maharashtra Accumulate 50 53 2,939 3,580 4,050 3.2 3.2 11.5 13.1 4.3 3.8 0.7 0.6 17.4 17.2 - -

Canara Bank Buy 415 493 18,380 12,061 13,906 2.3 2.3 83.1 92.7 5.0 4.5 0.8 0.7 16.7 16.4 - -

Central Bank Neutral 83 - 6,091 6,838 7,912 2.3 2.4 13.8 20.3 6.0 4.1 0.9 0.8 10.9 14.4 - -


July 03, 2012

Market Outlook

Stock Watch


8/13



Financials

Corporation Bank Accumulate 418 468 6,196 5,203 5,880 2.2 2.1 107.5 112.7 3.9 3.7 0.7 0.6 17.9 16.5 - -

Dena Bank Accumulate 99 107 3,474 3,149 3,522 2.8 2.8 23.3 26.1 4.3 3.8 0.7 0.6 17.7 17.0 - -

Federal Bank Neutral 452 - 7,734 2,743 3,131 3.4 3.3 49.7 57.4 9.1 7.9 1.2 1.1 14.1 14.6 - -

HDFC Neutral 661 - 98,469 7,393 8,844 3.5 3.4 31.7 37.9 20.9 17.4 4.2 3.7 34.7 31.9 - -

HDFC Bank Neutral 574 - 135,194 21,831 27,477 4.3 4.3 28.3 35.5 20.3 16.2 3.9 3.3 20.8 22.1 - -

ICICI Bank Buy 894 1,174 102,750 22,209 26,512 2.8 2.8 67.9 81.1 13.2 11.0 1.6 1.5 14.7 16.0 - -

IDBI Bank Buy 95 113 12,164 8,004 9,589 1.9 2.0 19.9 23.9 4.8 4.0 0.6 0.6 13.8 14.9 - -Indian Bank Accumulate 179 190 7,680 6,312 7,119 3.4 3.3 41.1 43.7 4.4 4.1 0.8 0.7 18.2 16.9 - -

IOB Accumulate 84 92 6,715 7,354 8,283 2.5 2.4 16.3 21.7 5.2 3.9 0.6 0.5 11.5 13.9 - -

J & K Bank Neutral 1,001 - 4,853 2,535 2,861 3.5 3.4 176.3 184.4 5.7 5.4 1.0 0.9 19.3 17.6 - -

LIC Housing Finance Accumulate 269 286 13,570 2,108 2,607 2.6 2.6 24.5 30.6 11.0 8.8 2.1 1.7 20.1 21.4 - -

Oriental Bank Neutral 263 - 7,666 6,431 7,315 2.7 2.6 54.4 63.8 4.8 4.1 0.7 0.6 13.6 14.3 - -

Punjab Natl.Bank Buy 814 1,041 27,609 19,893 23,653 3.1 3.2 153.4 175.2 5.3 4.7 1.0 0.8 18.3 18.1 - -

South Ind.Bank Neutral 24 - 2,730 1,440 1,635 2.7 2.5 3.8 4.1 6.4 5.9 1.2 1.1 19.9 18.6 - -

St Bk of India Accumulate 2,180 2,469 146,261 68,311 79,649 3.6 3.6 230.4 273.4 9.5 8.0 1.5 1.3 18.2 18.8 - -

Syndicate Bank Buy 106 126 6,390 7,133 8,255 3.0 3.0 25.9 30.0 4.1 3.5 0.7 0.6 16.9 17.1 - -

UCO Bank Neutral 82 - 5,444 5,623 6,380 2.4 2.4 16.9 17.9 4.9 4.6 0.9 0.8 16.5 15.4 - -

Union Bank Buy 210 261 11,540 10,215 11,854 2.9 2.8 42.7 50.3 4.9 4.2 0.8 0.7 17.0 17.5 - -

United Bank Buy 61 78 2,208 3,551 4,128 2.7 2.8 18.8 22.6 3.3 2.7 0.5 0.4 15.5 16.5 - -

Vijaya Bank Neutral 58 - 2,896 2,668 3,001 2.2 2.2 10.6 12.2 5.5 4.8 0.8 0.7 13.3 13.8 - -

Yes Bank Buy 343 450 12,153 3,209 4,144 2.7 2.8 33.9 41.5 10.1 8.3 2.1 1.8 23.1 23.3 - -

FMCG

Asian Paints Neutral 3,920 - 37,597 11,423 13,309 16.3 16.3 125.3 148.4 31.3 26.4 10.6 8.3 38.0 35.4 3.2 2.7Britannia Buy 539 633 6,443 5,835 6,824 6.3 6.7 20.7 27.5 26.0 19.6 10.2 7.6 42.7 44.3 1.1 0.9

Colgate Neutral 1,181 - 16,058 3,007 3,417 21.1 22.1 38.2 43.8 30.9 27.0 36.8 28.9 130.2 119.9 5.3 4.6

Dabur India Reduce 114 106 19,790 5,878 6,799 16.8 17.0 4.2 4.9 27.4 23.1 9.9 8.1 39.3 42.0 3.4 2.9

GlaxoSmith Con* Neutral 2,733 - 11,495 3,124 3,663 17.1 11.6 103.0 123.3 26.6 22.2 8.2 6.6 34.0 32.9 3.4 2.8

Godrej Consumer Neutral 574 - 19,530 5,973 7,000 18.4 18.6 22.8 27.2 25.2 21.1 6.9 5.6 31.3 38.4 3.4 2.9

HUL Neutral 447 - 96,643 25,350 29,309 14.3 14.4 14.1 16.4 31.6 27.3 23.7 18.5 82.7 76.2 3.7 3.2

ITC Neutral 250 - 195,539 29,638 34,159 35.4 35.8 9.3 10.9 26.8 22.9 8.6 7.1 35.3 33.8 6.6 5.6


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FMCG

Marico Neutral 184 - 11,871 4,667 5,427 12.8 12.9 6.6 8.1 27.7 22.7 7.4 5.8 30.0 28.8 2.6 2.1

Nestle* Neutral 4,541 - 43,780 8,731 10,539 21.0 21.4 119.3 147.9 38.1 30.7 23.3 15.9 73.0 61.6 5.0 4.1

Tata Global Buy 118 136 7,294 7,011 7,711 9.7 10.0 6.3 7.5 18.8 15.8 1.8 1.7 9.5 10.9 0.9 0.8

IT

HCL Tech Buy 484 560 33,554 22,792 25,743 17.4 17.4 37.8 43.0 12.8 11.3 2.8 2.4 22.3 21.3 1.4 1.2

Hexaware Neutral 127 - 3,757 1,821 2,105 19.0 18.6 9.8 10.7 12.9 11.9 3.0 2.6 23.7 22.5 1.8 1.5

Infosys Accumulate 2,501 2,792 143,621 37,615 42,491 31.1 30.6 158.5 174.5 15.8 14.3 3.6 3.0 22.5 20.8 3.2 2.7Infotech Enterprises Accumulate 167 177 1,861 1,758 1,972 17.0 16.6 16.8 18.6 9.9 9.0 1.4 1.2 13.6 13.2 0.6 0.5

KPIT Cummins Neutral 119 - 2,121 2,028 2,239 15.0 14.8 9.0 11.4 13.2 10.4 2.4 2.0 19.3 18.7 1.0 0.8

Mahindra Satyam Accumulate 83 86 9,732 7,097 7,812 16.2 16.0 7.5 8.0 11.0 10.4 1.5 1.3 13.2 12.3 0.9 0.7

Mindtree Neutral 674 - 2,739 2,172 2,450 16.1 15.5 53.9 58.5 12.5 11.5 2.3 2.0 18.9 17.0 1.0 0.8

Mphasis Neutral 369 - 7,761 5,608 5,964 17.7 17.3 35.5 36.8 10.4 10.0 1.5 1.3 13.9 12.6 0.9 0.8

NIIT Buy 43 52 707 1,162 1,304 14.8 15.1 7.1 8.8 6.0 4.9 1.0 0.9 16.7 18.4 0.4 0.3

Persistent Reduce 395 361 1,580 1,109 1,224 23.3 22.4 37.2 40.1 10.6 9.9 1.6 1.4 15.4 14.5 1.1 0.9

TCS Neutral 1,260 - 246,649 57,189 66,329 29.3 28.7 63.2 70.9 20.0 17.8 6.1 4.9 30.5 27.7 4.1 3.5

Tech Mahindra Neutral 734 - 9,358 5,880 6,314 15.6 15.2 75.9 82.2 9.7 8.9 1.9 1.6 20.1 18.1 1.5 1.3

Wipro Accumulate 400 452 98,447 43,150 48,541 20.0 20.5 25.9 30.1 15.4 13.3 3.0 2.5 19.1 19.0 1.9 1.6

Media

D B Corp Buy 202 269 3,704 1,652 1,863 25.7 26.3 13.5 16.1 15.0 12.6 3.4 2.8 24.1 24.4 2.2 1.9

HT Media Buy 97 148 2,277 2,255 2,555 16.3 16.7 9.0 10.6 10.8 9.1 1.4 1.2 13.4 13.8 0.6 0.5

Jagran Prakashan Buy 87 137 2,744 1,499 1,642 27.4 28.8 7.6 9.1 11.4 9.6 3.8 3.4 34.6 37.7 1.8 1.6

PVR Neutral 153 - 397 625 732 17.4 16.9 12.4 15.8 12.3 9.7 2.0 2.1 8.5 9.9 0.8 0.7

Sun TV Network Neutral 306 - 12,039 2,135 2,458 75.2 74.4 20.9 24.0 14.6 12.7 3.4 2.9 26.0 25.1 4.5 3.7Metals & Mining

Bhushan Steel Reduce 464 436 9,862 9,232 13,557 30.8 31.1 48.0 58.6 9.7 7.9 1.2 1.1 14.5 7.5 3.2 2.2

Coal India Neutral 350 - 220,915 68,841 74,509 25.3 25.3 24.1 26.1 14.5 13.4 4.0 3.3 30.4 26.8 2.3 2.0

Electrosteel Castings Buy 18 22 628 1,984 2,074 11.2 12.6 2.0 2.7 8.9 6.7 0.4 0.1 4.2 5.5 0.5 0.5

Hind. Zinc Accumulate 122 139 51,549 13,043 14,223 51.8 52.8 14.8 16.6 8.2 7.4 1.6 1.4 21.2 19.9 2.3 1.7

Hindalco Neutral 121 - 23,185 83,463 91,313 9.0 9.9 13.7 18.1 8.9 6.7 0.7 0.6 7.9 9.6 0.5 0.5

JSW Steel Neutral 679 - 15,154 39,592 44,910 18.0 17.7 74.7 88.9 9.1 7.6 0.9 0.8 10.7 11.6 0.7 0.7

MOIL Neutral 279 - 4,693 1,007 1,091 56.6 56.9 29.4 31.9 9.5 8.8 1.7 1.5 19.0 18.2 2.5 2.1

Monnet Ispat Buy 375 447 2,413 3,115 3,748 22.1 25.1 59.1 66.8 6.3 5.6 0.9 0.8 15.6 15.3 1.5 1.1


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Stock Watch


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Metals & Mining

Nalco Reduce 60 54 15,554 8,474 9,024 12.6 16.2 2.6 3.6 23.6 16.8 1.3 1.2 5.6 7.5 1.4 1.3

NMDC Neutral 196 - 77,748 11,959 13,062 78.2 78.6 19.1 20.9 10.3 9.4 2.5 2.1 27.1 24.4 4.1 3.5

SAIL Neutral 91 - 37,670 50,914 60,785 14.6 15.1 9.4 10.5 9.7 8.7 0.9 0.8 9.2 9.6 1.2 1.1

Sesa Goa Neutral 192 - 16,652 9,067 9,316 35.7 35.5 44.5 44.3 4.3 4.3 0.9 0.8 23.5 19.5 0.4 0.1

Sterlite Inds Buy 104 123 35,034 45,805 49,029 21.2 23.5 16.5 19.1 6.3 5.5 0.7 0.6 11.5 12.0 0.4 0.2

Tata Steel Accumulate 447 499 43,413 143,088 148,011 10.9 12.1 53.9 66.0 8.3 6.8 1.0 0.9 12.2 13.4 0.6 0.6

Oil & GasCairn India Buy 314 372 59,935 15,513 16,074 74.0 69.7 51.1 48.6 6.2 6.5 1.0 0.9 18.3 14.8 2.6 1.9

GAIL Accumulate 355 389 45,056 50,472 55,502 15.3 15.6 35.4 37.0 10.0 9.6 1.8 1.6 19.0 17.2 0.1 -

ONGC Accumulate 285 321 244,174 156,331 159,043 37.7 36.3 31.3 32.6 9.1 8.8 1.6 1.4 18.7 17.3 1.2 1.1

Reliance Industries Buy 737 897 241,482 316,404 319,119 11.2 12.0 63.5 68.7 11.6 10.7 1.2 1.1 11.7 11.4 0.7 0.7

Pharmaceuticals

Alembic Pharma Buy 55 91 1,035 1,624 1,855 14.2 15.6 6.6 9.1 8.3 6.0 2.0 1.6 27.5 29.2 0.9 0.7

Aurobindo Pharma Buy 114 156 3,326 5,243 5,767 14.6 14.6 13.8 14.7 8.3 7.8 1.0 0.4 11.4 10.9 0.8 0.6

Aventis* Neutral 2,190 - 5,043 1,482 1,682 15.5 15.5 95.0 104.0 23.1 21.1 4.1 3.2 18.6 17.0 3.1 2.7

Cadila Healthcare Buy 770 953 15,773 6,196 7,443 18.5 19.5 43.3 50.8 17.8 15.2 4.6 3.7 25.4 24.8 2.5 2.0

Cipla Buy 316 379 25,364 7,687 8,804 21.4 21.4 16.5 18.9 19.2 16.7 3.0 2.6 16.7 16.8 3.2 2.8

Dr Reddy's Neutral 1,644 - 27,887 10,696 11,662 20.7 21.0 83.7 92.9 19.6 17.7 4.1 3.4 22.4 21.0 2.7 2.5

Dishman Pharma Buy 68 92 548 1,280 1,536 17.8 17.8 9.2 11.3 7.4 6.0 0.6 0.5 7.7 8.5 1.1 0.9

GSK Pharma* Neutral 2,027 - 17,165 2,651 2,993 31.7 31.2 76.0 82.4 26.7 24.6 7.7 6.7 30.8 29.0 5.5 4.7

Indoco Remedies Buy 56 82 517 685 837 15.2 15.2 7.4 8.9 7.6 6.3 1.1 1.0 15.9 16.3 0.9 0.7

Ipca labs Buy 361 435 4,554 2,850 3,474 20.3 20.3 26.6 32.7 13.6 11.0 3.5 2.8 28.2 27.9 1.7 1.4

Lupin Buy 543 647 24,280 8,426 10,082 19.7 20.0 29.7 32.4 18.3 16.8 4.8 3.8 27.0 25.2 2.8 2.2Orchid Chemicals Buy 120 178 847 2,117 2,434 17.7 17.7 16.7 22.2 7.2 5.4 0.7 0.6 9.5 11.5 1.0 0.9

Ranbaxy* Neutral 496 - 20,933 12,046 11,980 18.0 15.8 35.7 29.8 13.9 16.6 5.2 4.3 43.1 28.1 1.7 1.7

Sun Pharma Reduce 635 569 65,384 9,272 11,080 38.6 38.0 22.7 22.6 28.0 28.1 4.7 4.1 17.9 15.6 5.0 3.9

Power

CESC Buy 298 342 3,727 5,084 5,512 24.2 23.8 45.2 48.5 6.6 6.2 0.7 0.6 11.2 10.9 1.2 1.2

GIPCL Buy 65 77 986 1,557 1,573 28.8 28.5 10.4 10.9 6.3 6.0 0.6 0.6 10.4 10.2 1.1 0.9

NTPC Neutral 161 - 132,958 74,766 86,549 23.1 23.4 12.4 14.1 13.0 11.5 1.6 1.5 13.0 13.5 2.5 2.3

Real Estate

Anant Raj Buy 47 78 1,397 657 875 52.0 56.1 8.4 12.7 5.6 3.7 0.3 0.3 6.3 8.9 3.4 2.6

DLF Neutral 205 - 34,750 9,878 12,033 44.7 46.1 9.6 13.4 21.4 15.3 1.4 1.3 6.4 8.7 5.9 4.9


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Stock Watch


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Real Estate

HDIL Buy 89 115 3,721 2,441 3,344 53.0 46.7 21.4 25.4 4.1 3.5 0.3 0.3 8.4 9.1 3.3 2.5

MLIFE Accumulate 331 376 1,352 814 897 26.9 27.0 31.3 33.9 10.6 9.8 1.1 1.0 10.2 10.1 2.0 1.8

Telecom

Bharti Airtel Neutral 310 - 117,666 80,961 86,705 33.5 34.0 17.2 20.8 18.0 14.9 2.1 1.8 11.5 12.3 2.1 1.8

Idea Cellular Neutral 78 - 25,715 22,558 25,326 26.4 27.5 3.2 4.7 24.1 16.4 1.8 1.6 7.5 10.0 1.6 1.4

Rcom Neutral 64 - 13,241 22,288 23,871 32.1 32.7 4.4 6.0 14.5 10.7 0.4 0.3 2.4 3.2 2.0 1.7

zOthersAbbott India Accumulate 1,463 1,628 3,108 1,661 1,918 9.7 12.0 60.7 90.4 24.1 16.2 4.9 4.0 22.0 27.3 1.7 1.4

Bajaj Electricals Buy 198 246 1,973 3,569 4,172 8.6 9.2 17.3 22.3 11.5 8.9 2.5 2.1 22.9 25.3 0.5 0.5

Cera Sanitaryware Accumulate 276 306 349 395 469 15.4 16.6 30.0 38.0 9.2 7.3 2.0 1.6 23.7 24.5 1.0 0.9

Cravatex Buy 562 785 145 302 364 5.7 6.0 49.0 71.0 11.5 7.9 3.4 2.4 29.8 30.7 0.6 0.5

CRISIL Neutral 1,072 - 7,520 982 1,136 34.3 34.3 34.3 40.0 31.2 26.8 14.1 11.3 50.9 46.9 7.2 6.1

Finolex Cables Buy 43 61 652 2,334 2,687 8.8 9.3 7.6 10.2 5.6 4.2 0.7 0.6 13.7 16.1 0.2 0.1

Force Motors Buy 474 615 618 2,346 2,753 5.8 6.7 44.0 68.0 10.8 7.0 0.5 0.5 4.8 7.0 0.2 0.2

Goodyear India Buy 313 374 722 1,511 1,692 7.9 9.0 31.5 41.3 9.9 7.6 2.0 1.6 21.2 23.5 0.3 0.2

Graphite India Buy 89 124 1,743 2,158 2,406 18.1 18.9 12.4 14.0 7.2 6.4 1.0 0.9 14.0 14.3 0.9 0.8

Greenply Industries Buy 193 309 466 1,925 2,235 10.6 10.9 29.6 44.1 6.5 4.4 1.1 0.9 16.8 21.0 0.5 0.4

HEG Buy 214 242 856 1,746 1,946 16.5 17.7 22.5 32.9 9.5 6.5 1.0 0.9 10.4 14.2 1.1 1.1

Hitachi Buy 119 160 273 857 968 6.9 8.4 10.2 16.0 11.7 7.4 1.4 1.2 12.9 17.8 0.4 0.3

Honeywell Automation Neutral 2,732 - 2,415 1,761 2,024 6.7 8.2 95.0 127.0 28.8 21.5 3.4 2.9 14.1 16.3 1.3 1.1

INEOS ABS India Accumulate 731 804 1,286 900 1,020 9.0 11.1 33.0 45.0 22.2 16.3 3.0 2.6 14.3 17.0 1.2 1.0

ITD Cementation Neutral 229 - 264 1,535 1,842 11.1 11.1 27.3 38.3 8.4 6.0 0.6 0.6 7.9 10.2 0.6 0.6

Jyothy Laboratories Accumulate 230 268 1,857 1,315 1,568 8.6 11.1 6.4 10.9 36.1 21.2 3.0 2.9 8.4 13.9 1.7 1.4MCX Buy 1,064 1,598 5,424 610 702 65.5 67.0 67.9 79.9 15.7 13.3 4.6 3.9 29.1 28.9 5.9 4.7

MRF Buy 10,150 13,106 4,305 12,390 14,400 10.4 11.3 1,334.6 1,638.2 7.6 6.2 1.5 1.2 16.5 17.4 0.5 0.5

Page Industries Neutral 2,890 - 3,223 887 1,108 18.3 18.6 95.0 120.9 30.4 23.9 15.9 12.9 57.4 59.5 3.7 2.9

Relaxo Footwears Reduce 507 478 608 1,019 1,208 11.0 10.8 44.9 53.1 11.3 9.6 2.7 2.1 27.2 25.0 0.8 0.6

Sintex Industries Buy 63 79 1,708 4,751 5,189 16.3 16.6 13.6 15.8 4.6 4.0 0.6 0.5 12.9 13.2 0.7 0.6

Siyaram Silk Mills Buy 275 392 258 1,042 1,173 12.4 12.5 66.3 78.5 4.2 3.5 0.8 0.7 21.1 20.8 0.5 0.4

SpiceJet Buy 34 40 1,627 5,647 6,513 3.5 6.5 1.9 4.9 17.3 6.9 40.6 5.9 - - 0.4 0.4

TAJ GVK Buy 63 108 395 300 319 35.8 36.2 7.9 9.1 8.0 6.9 1.1 1.0 13.9 14.4 1.6 1.4


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zOthers

Tata Sponge Iron Buy 338 420 521 700 806 18.2 18.2 55.6 65.1 6.1 5.2 0.8 0.7 14.2 14.8 0.3 0.2

TVS Srichakra Buy 327 462 250 1,612 1,827 9.5 9.8 72.3 92.5 4.5 3.5 1.3 1.0 33.1 32.1 0.4 0.3

United Spirits Accumulate 714 730 9,343 10,289 11,421 13.5 14.3 31.0 42.9 23.0 16.6 1.8 1.6 8.1 10.3 1.6 1.4

Vesuvius India Accumulate 370 413 751 628 716 16.4 16.5 29.8 34.4 12.4 10.8 2.2 1.9 18.8 18.6 1.0 0.8

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on July 02, 2012


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Market Outlook

Stock Watch


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July 03, 2012Market Outlook

Market Outlook 040712

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Transcript of Market Outlook 040712