Market Outlook 050612

7/31/2019 Market Outlook 050612

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Market OutlookJune 5, 2012

www.angelbroking.com


Dealers Diary

The domestic markets are expected to open in green tracing positive opening in

most of the Asian bourses and the SGX Nifty, amid speculation that global policy

makers will take steps to stimulate economic growth.

Globally, US markets showed a lack of direction over the course of the trading day

on Monday after ending the previous session substantially lower. The choppy

trading came as traders expressed uncertainty about the outlook for the markets

following last Friday's sell-off. The report, which showed the weakest job growth in

a year, added to concerns about whether the US economic recovery will be able to

hold up in light of the ongoing European debt crisis and slowing growth in China.

Meanwhile, Indian benchmark indices as well as the rupee showed signs of

resilience to global turbulence from the very start of session, as falling global oil

prices and the prospects of a good farm output meant lower fiscal and current

account deficits in the months ahead. Ahead of the central bank's mid-quarterly

policy review on June 18, RBI deputy governor Subir Gokarn hinted that there is

now more elbow room to ease monetary policy, spurring some late recovery in

rate-sensitive realty, banking and auto stocks.

Markets Today

The trend deciding level for the day is 15,915 / 4,826 levels. If NIFTY trades above

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

up to 16,082 16,168 / 4,881 4,909 levels. However, if NIFTY trades below

15,915 / 4,826 levels for the first half-an-hour of trade then it may correct up to

15,829 15,663 / 4,798 4,742 levels.

SENSEX 15,663 15,829 15,915 16,082 16,168

NIFTY 4,742 4,798 4,826 4,881 4,909

News Analysis

NTPC commissions Unit 3 (660 MW) of Sipat STPS Bajaj Auto reports lower-than-expected volumes for May 2012 Hero MotoCorp to invest `2,575cr by FY2013-14Refer detailed news analysis on the following page

Net Inflows (May 31, 2012)

FII 8,325 6,960 1,365 477 43,938MFs 400 857 (457) (366) (6,467)

FII Derivatives (June 04, 2012)

Index Futures 1,153 1,501 (348) 7,801

Stock Futures 1,083 977 106 20,002

Gainers / Losers

Pantaloon Retail 148 6.9 Jubiliant Food. 1,150 (6.7)

Manappuram Finance 22 5.9 Petronet LNG 131 (6.4)

Dena Bank 93 5.4 Neyveli Lignite 81 (5.5)

Shree Cement 2,490 5.3 Indraprastha Gas 236 (5.4)

Jaiprakash Associates 65 5.0 Titan Industries 210 (5.2)

BSE Sensex 0.2 23.2 15,988

Nifty 0.1 6.6 4,848

MID CAP (0.2) (12.4) 5,809

SMALL CAP (0.2) (14.0) 6,180

BSE HC (0.5) (35.3) 6,522

BSE PSU 0.5 33.8 6,698

BANKEX 1.1 117.9 10,803

AUTO 0.8 67.8 8,748

METAL (0.6) (59.7) 9,875

OIL & GAS 1.2 86.6 7,514

BSE IT (0.3) (15.9) 5,536

Dow Jones (0.1) (17.1) 12,101NASDAQ 0.5 12.5 2,760

FTSE (1.1) (60.7) 5,260

Nikkei (1.7) (144.6) 8,296

Hang Seng (2.0) (372.8) 18,186

Straits Times (1.7) (46.8) 2,699

Shanghai Com (2.7) (64.9) 2,309

INFY 1.2 0.5 $42.7

WIT 1.3 0.1 $8.5IBN 0.9 0.2 $28.2

HDB 1.8 0.5 $28.1

Advances 1,204 621

Declines 1,449 842

Unchanged 121 81

BSE 1,226

NSE 8,920


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NTPC commissions Unit 3 (660 MW) of Sipat STPS

National Thermal Power Corporation Ltd has commissioned Unit 3 (660 MW) of

Sipat Super Thermal Power Station Stage-I on June 02, 2012. With this, the total

capacity of NTPC group has become 38,674 MW. The company targets to add4,160MW of capacity in FY2013 and has till date added 1,660MW of capacity

since the beginning of the year. At current market price, the stock is trading at 1.4x

FY2013E and 1.3x FY2014E P/BV.

Bajaj Auto reports lower-than-expected volumes for May 2012

Bajaj Auto (BJAUT) reported lower-than-expected volumes for May 2012, led by a

decline in exports (sharply on mom basis) and three-wheeler volumes. Total

monthly volumes declined by 1.8% yoy and 7.7% sequentially to 352,219 units.

Exports during the month plunged by 22.7% sequentially mainly on account of

exports to Sri Lanka (nil during the month as against monthly average of ~20,000

units), which were impacted as the Sri Lankan government raised the import taxes

on two-wheelers. The company, however, expects recovery in the Sri Lankan

market from July 2012. Motorcycle volumes registered modest 1.2% yoy (down 6%

mom) growth to 321,922 units as the segment continues to be impacted by

moderation in demand in the two-wheeler sector. Three-wheeler volumes also fell

significantly by 25.9% yoy (22.8% mom) to 30,297 units. Nonetheless, we

maintain our positive view on the company owing to its diversified business model

and attractive valuations. Further, three new launches (Discover 100cc, Discover

125cc and Pulsar 200cc) in domestic markets are expected to lend volumemomentum going ahead. At `1,492, BJAUT is trading attractively at 11.8x

FY2014E earnings.

Hero MotoCorp to invest `2,575cr by FY2013-14

Hero MotoCorp (HMCL) has announced that it will invest `2,575cr by FY2013-14

towards enhancing capacity, acquiring technological expertise and expand into

exports markets. The company plans to set up new plants in Rajasthan and

Gujarat that would boost its overall production capacity to 9mn units from the

current levels of 7mn units across three plants in Gurgaon, Dharuhera and

Haridwar. HMCL also intends to spend `4000cr towards setting up an integrated

research and development (R&D) center in Jaipur. In addition, the company is

looking to set up bike assembly facilities with new partners in markets such as

Brazil, Kenya, Nigeria and Columbia. We believe this announcement is positive for

the company and is on expected lines, as management had already indicated such

intentions earlier. Further, setting up assembly lines in new exports markets will

help HMCL progress towards achieving its goals of ~1mn units by FY2016-17.

The company expects to achieve 25% growth in its export sales in FY2013 to

~2.5lakh units.

Meanwhile, HMCL also approved the merger of Hero Investments Private Ltd

(HIPL) with itself, which would be subject to the approval of the Delhi High Court.

As a result of the merger, the existing shareholders of HIPL, which includes

Brijmohan Lall Om Prakash (BMOP), Bain Capital India Pvt. Investors and Lathe


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Investments Pvt. Ltd., will hold approximately 31.04%, 8.58% and 3.71%,

respectively in HMCL. While the merger will increase the free float of the company

by ~12.29%, there will be no change in the financial position and paid-up equity

capital of the company.

At`

1,843 the stock is attractively valued at 12.4x FY2014E earnings.

Economic and Political News

RBI hints at easing interest rates Finance Ministry examining raising excise duty on diesel cars: CBEC Falling oil prices, normal monsoon to help economy: Finance Minister

Corporate News

Coal India asks arms to sign FSA with power units coming up by 2015 Man Industries bags `800cr order to supply pipes to oil and gas sector Automotive Axles intends to set up new plant in Madhya PradeshSource: Economic Times, Business Standard, Business Line, Financial Express, Mint


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5/12

Market StrategyJune 05, 2012


Macro watch

Exhibit 1:Quarterly GDP trends

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

Exhibit 2:IIP trends

5.36.2

9.5

3.7 3.42.5

(5.0)

6.0

2.7

1.1

4.1

(3.5)(6.0)

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

12.0

Apr-

11

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

(%)

Source: MOSPI, Angel Research

Exhibit 3:Monthly WPI inflation trends

9.6 9.5 9.4 9.810.0 9.9 9.5

7.76.9

7.46.9 7.2

0.0

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

Exhibit 4:Manufacturing and services PMI

48.0

50.0

52.0

54.0

56.0

58.0

60.0

Apr-

11

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

Mfg. PMI Services PMI

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

Exhibit 5:Exports and imports growth trends

(15)

0

15

30

45

60

75

90

Apr-

11

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

Exports yoy growth Imports yoy growth(%)

Source: Bloomberg, Angel Research

Exhibit 6:Key policy rates8.00

7.00

4.75

4.00

5.00

6.00

7.00

8.00

9.00

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

Repo rate Reverse Repo rate CRR(%)

Source: RBI, Angel Research


6/12

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 121 - 2,348 1,432 1,647 14.7 14.7 7.0 8.0 17.3 15.1 3.6 3.1 22.8 22.3 1.7 1.4

United Phosphorus Buy 110 183 5,084 8,191 8,764 16.5 16.5 17.1 18.3 6.5 6.0 1.1 0.9 17.5 16.2 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Buy 296 345 2,526 2,691 3,032 15.6 15.5 29.4 32.8 10.1 9.0 2.4 1.9 26.5 23.6 0.9 0.8

Apollo Tyres Buy 81 100 4,105 13,699 15,184 10.5 10.2 12.1 13.3 6.7 6.1 1.2 1.0 19.7 18.4 0.5 0.4

Ashok Leyland Buy 25 33 6,678 14,798 16,687 9.6 9.6 2.4 3.0 10.4 8.4 2.1 1.8 14.8 16.5 0.5 0.4

Automotive Axle Buy 445 514 672 1,211 1,387 12.1 11.7 50.3 57.1 8.9 7.8 2.2 1.8 27.8 25.7 0.6 0.5Bajaj Auto Buy 1,492 1,835 43,162 22,118 24,889 19.0 18.6 115.7 126.5 12.9 11.8 5.2 4.1 45.0 38.9 1.5 1.3

Bharat Forge Buy 301 372 7,002 7,173 7,998 16.3 16.5 22.3 26.6 13.5 11.3 2.6 2.2 21.0 21.0 1.1 0.9

Bosch India Accumulate 8,861 9,429 27,822 9,390 10,716 19.5 19.1 420.2 471.4 21.1 18.8 4.9 4.1 23.3 21.8 2.7 2.3

CEAT Buy 91 164 311 5,067 5,631 8.0 7.6 39.4 41.0 2.3 2.2 0.4 0.3 18.8 16.5 0.3 0.3

Exide Industries Buy 118 146 10,030 5,787 6,595 15.5 17.0 7.1 9.0 16.6 13.2 2.9 2.5 18.6 20.3 1.4 1.1

FAG Bearings Accumulate 1,508 1,594 2,505 1,531 1,748 18.8 18.5 118.0 132.8 12.8 11.4 2.8 2.3 24.0 21.9 1.4 1.1

Hero Motocorp Buy 1,843 2,221 36,802 26,106 29,296 15.0 15.2 140.3 148.1 13.1 12.5 6.2 4.8 54.8 43.3 1.1 0.9

JK Tyre Buy 75 113 310 8,058 9,025 5.4 5.5 24.8 32.2 3.0 2.3 0.3 0.3 11.4 13.2 0.3 0.3

Mahindra and Mahindra Buy 649 793 39,853 34,740 39,263 10.7 11.0 44.9 51.7 14.5 12.6 2.6 2.2 18.9 19.1 0.8 0.7

Maruti Buy 1,068 1,510 30,856 42,683 48,736 7.1 7.5 86.6 100.6 12.3 10.6 1.8 1.5 15.3 15.5 0.5 0.4

Motherson Sumi Buy 158 216 6,134 11,167 12,516 9.5 10.0 11.3 14.4 14.0 11.0 3.0 2.5 23.3 24.7 0.6 0.6

Subros Neutral 32 - 192 1,225 1,393 8.5 8.2 4.2 5.0 7.6 6.4 0.8 0.7 10.3 11.8 0.4 0.3

Tata Motors Buy 229 312 60,964 191,183 210,301 12.8 12.8 39.4 43.6 5.8 5.2 2.1 1.6 40.4 34.3 0.4 0.4

TVS Motor Buy 32 55 1,542 7,982 8,816 6.4 6.3 5.0 5.6 6.5 5.9 1.1 1.0 18.9 18.2 0.2 0.1

Capital Goods

ABB* Sell 721 498 15,268 8,760 10,023 6.4 6.4 18.2 20.7 39.5 34.7 5.3 4.8 14.4 14.6 1.7 1.5BGR Energy Neutral 278 - 2,006 4,170 5,396 11.5 10.4 27.2 30.4 10.2 9.1 1.7 1.5 17.3 17.4 1.1 1.0

BHEL Neutral 207 - 50,678 46,344 46,916 18.3 18.6 23.5 24.1 8.8 8.6 1.7 1.5 21.3 18.9 1.0 0.9

Blue Star Buy 160 221 1,441 3,250 3,551 5.9 5.9 12.4 15.8 12.9 10.2 2.6 2.2 21.2 23.8 0.5 0.4

Crompton Greaves Buy 109 164 6,986 12,936 14,101 9.6 10.0 10.9 11.7 10.0 9.3 1.7 1.5 18.4 17.3 0.6 0.5

Jyoti Structures Buy 38 67 316 2,622 2,801 10.6 11.0 10.9 13.4 3.5 2.9 0.4 0.4 12.7 13.9 0.3 0.3

KEC International Buy 51 73 1,301 6,686 7,200 7.7 7.9 10.6 12.2 4.8 4.2 0.9 0.8 25.9 24.0 0.3 0.3

LMW Buy 1,528 2,609 1,722 2,663 3,130 12.8 12.8 185.0 217.4 8.3 7.0 1.6 1.4 21.2 21.7 0.2 0.1

Thermax Neutral 432 - 5,152 5,514 5,559 8.3 8.0 29.7 28.4 14.6 15.2 2.7 2.4 20.2 16.9 0.8 0.8


June 05, 2012

Market Outlook

Stock Watch


7/12



Cement

ACC Neutral 1,125 - 21,116 11,018 12,663 19.9 21.2 70.7 81.2 15.9 13.9 2.8 2.5 18.0 19.0 1.6 1.4

Ambuja Cements Neutral 150 - 23,058 10,035 11,504 23.5 23.8 10.1 10.6 14.8 14.2 2.9 2.6 18.5 19.4 1.9 1.6

India Cements Neutral 74 - 2,273 4,423 4,906 18.2 18.8 9.9 12.7 7.5 5.9 0.6 0.6 8.6 10.5 0.8 0.7

J K Lakshmi Cements Buy 61 79 748 1,938 2,246 19.1 20.1 14.6 16.1 4.2 3.8 0.6 0.5 13.4 13.6 0.5 0.9

Madras Cements Neutral 136 - 3,230 3,444 3,786 25.5 24.9 14.6 17.1 9.3 8.0 1.4 1.2 15.6 16.0 1.6 1.3

Shree Cements Neutral 2,384 - 8,304 5,465 6,249 24.3 23.7 151.5 222.1 15.7 10.7 3.8 3.2 21.6 25.8 1.2 0.9

UltraTech Cement Neutral 1,402 - 38,411 20,116 22,655 21.3 22.5 82.1 97.5 17.1 14.4 2.7 2.3 16.8 17.4 1.8 1.7Construction

Ashoka Buildcon Buy 208 273 1,094 2,014 2,293 22.4 22.4 22.6 26.7 9.2 7.8 1.0 0.9 11.4 11.9 2.4 2.7

Consolidated Co Neutral 14 - 250 2,526 2,792 5.7 6.6 1.8 2.8 7.3 4.8 0.4 0.4 5.5 8.1 0.3 0.3

Hind. Const. Neutral 18 - 1,071 4,239 4,522 11.1 11.8 (1.8) (0.8) (9.8) (22.6) 1.0 1.1 (9.5) (4.7) 1.3 1.2

IRB Infra Buy 114 166 3,772 3,821 4,582 42.3 40.2 15.0 16.9 7.6 6.7 1.1 1.0 16.1 15.8 2.6 2.4

ITNL Buy 172 265 3,343 6,619 7,925 23.8 23.3 22.0 26.7 7.8 6.5 1.1 1.0 14.9 15.9 2.2 2.1

IVRCL Infra Buy 40 61 1,059 5,510 6,722 8.8 9.0 2.5 4.6 15.7 8.7 0.5 0.5 3.4 5.8 0.7 0.6

Jaiprakash Asso. Buy 65 98 13,737 16,017 18,359 24.4 23.5 4.2 5.0 15.4 12.9 1.3 1.2 8.8 9.7 2.2 1.9

Larsen & Toubro Buy 1,173 1,553 71,904 59,559 69,089 12.1 11.5 70.8 76.5 16.6 15.4 2.5 2.2 16.1 15.3 1.3 1.2

Madhucon Proj Buy 38 70 280 2,206 2,502 10.7 10.7 4.6 4.7 8.2 8.1 0.4 0.4 5.2 5.0 0.7 0.7

Nagarjuna Const. Buy 30 41 761 5,453 6,169 8.1 8.5 1.6 1.9 18.0 15.4 0.3 0.3 1.8 2.1 0.6 0.7

Patel Engg. Neutral 84 - 587 3,609 3,836 13.1 13.1 14.0 14.6 6.0 5.8 0.4 0.3 6.3 6.1 1.0 1.1

Punj Lloyd Neutral 43 - 1,425 10,592 12,193 8.4 8.4 2.9 4.6 14.8 9.4 0.5 0.4 3.9 3.1 0.6 0.6

Sadbhav Engg. Buy 123 199 1,843 2,989 3,315 10.6 10.6 10.2 11.3 12.1 10.9 1.9 1.6 17.6 16.3 0.8 0.8

Simplex Infra Buy 207 316 1,024 6,732 7,902 9.3 9.6 27.2 35.1 7.6 5.9 0.8 0.7 11.0 12.6 0.5 0.4

FinancialsAllahabad Bank Buy 126 147 6,275 7,392 8,542 3.1 3.1 38.3 42.1 3.3 3.0 0.6 0.5 18.4 17.6 - -

Andhra Bank Neutral 108 - 6,024 5,151 5,843 3.2 3.1 22.4 25.7 4.8 4.2 0.7 0.7 15.8 16.0 - -

Axis Bank Buy 988 1,476 40,864 16,157 19,557 3.2 3.2 116.4 139.1 8.5 7.1 1.6 1.3 20.0 20.3 - -

Bank of Baroda Buy 678 925 26,551 15,993 18,918 2.6 2.6 127.3 149.9 5.3 4.5 0.9 0.8 17.8 18.2 - -

Bank of India Buy 334 389 19,138 13,558 15,551 2.5 2.4 61.6 70.8 5.4 4.7 0.9 0.8 16.8 16.9 - -

Bank of Maharashtra Accumulate 50 53 2,927 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 397 493 17,585 12,061 13,906 2.3 2.3 83.1 92.7 4.8 4.3 0.8 0.7 16.7 16.4 - -

Central Bank Neutral 75 - 5,532 6,838 7,912 2.3 2.4 13.8 20.3 5.5 3.7 0.8 0.7 10.9 14.4 - -


June 05, 2012

Market Outlook

Stock Watch


8/12



Financials

Corporation Bank Accumulate 408 468 6,050 5,203 5,880 2.2 2.1 107.5 112.7 3.8 3.6 0.7 0.6 17.9 16.5 - -

Dena Bank Accumulate 93 107 3,250 3,149 3,522 2.8 2.8 23.3 26.1 4.0 3.6 0.7 0.6 17.7 17.0 - -

Federal Bank Neutral 413 - 7,053 2,743 3,131 3.4 3.3 49.7 57.4 8.3 7.2 1.1 1.0 14.1 14.6 - -

HDFC Neutral 640 - 94,563 7,393 8,844 3.5 3.4 31.7 37.9 20.2 16.9 4.0 3.6 34.7 31.9 - -

HDFC Bank Accumulate 497 567 116,779 21,831 27,477 4.3 4.3 28.3 35.5 17.6 14.0 3.4 2.9 20.8 22.1 - -

ICICI Bank Buy 790 1,174 90,836 22,209 26,512 2.8 2.8 67.9 81.1 11.6 9.7 1.4 1.3 14.7 16.0 - -

IDBI Bank Buy 86 113 10,962 8,004 9,589 1.9 2.0 19.9 23.9 4.3 3.6 0.6 0.5 13.8 14.9 - -Indian Bank Buy 160 190 6,872 6,312 7,119 3.4 3.3 41.1 43.7 3.9 3.7 0.7 0.6 18.2 16.9 - -

IOB Accumulate 82 92 6,504 7,354 8,283 2.5 2.4 16.3 21.7 5.0 3.8 0.6 0.5 11.5 13.9 - -

J & K Bank Accumulate 902 952 4,372 2,535 2,861 3.5 3.4 176.3 184.4 5.1 4.9 0.9 0.8 19.3 17.6 - -

LIC Housing Finance Buy 234 286 11,809 2,108 2,607 2.6 2.6 24.5 30.6 9.6 7.7 1.8 1.5 20.1 21.4 - -

Oriental Bank Buy 220 262 6,409 6,431 7,315 2.7 2.6 54.4 63.8 4.0 3.4 0.6 0.5 13.6 14.3 - -

Punjab Natl.Bank Buy 741 1,041 25,125 19,893 23,653 3.1 3.2 153.4 175.2 4.8 4.2 0.9 0.7 18.3 18.1 - -

South Ind.Bank Neutral 23 - 2,633 1,440 1,635 2.7 2.5 3.8 4.1 6.2 5.7 1.1 1.1 19.9 18.6 - -

St Bk of India Buy 2,046 2,469 137,309 68,311 79,649 3.6 3.6 230.4 273.4 8.9 7.5 1.5 1.2 18.2 18.8 - -

Syndicate Bank Buy 92 126 5,529 7,133 8,255 3.0 3.0 25.9 30.0 3.5 3.1 0.6 0.5 16.9 17.1 - -

UCO Bank Neutral 70 - 4,683 5,623 6,380 2.4 2.4 16.9 17.9 4.2 4.0 0.8 0.7 16.5 15.4 - -

Union Bank Buy 192 261 10,576 10,215 11,854 2.9 2.8 42.7 50.3 4.5 3.8 0.7 0.6 17.0 17.5 - -

United Bank Buy 59 78 2,139 3,551 4,128 2.7 2.8 18.8 22.6 3.2 2.6 0.5 0.4 15.5 16.5 - -

Vijaya Bank Neutral 55 - 2,748 2,668 3,001 2.2 2.2 10.6 12.2 5.2 4.5 0.7 0.6 13.3 13.8 - -

Yes Bank Buy 321 450 11,355 3,209 4,144 2.7 2.8 33.9 41.5 9.5 7.7 2.0 1.6 23.1 23.3 - -

FMCG

Asian Paints Neutral 3,685 - 35,344 11,423 13,309 16.3 16.3 125.3 148.4 29.4 24.8 10.0 7.8 38.0 35.4 3.0 2.6Britannia Buy 518 650 6,193 5,906 6,856 6.9 7.0 22.3 28.3 23.2 18.3 9.5 7.0 45.2 44.1 1.0 0.9

Colgate Neutral 1,136 - 15,449 3,007 3,417 21.1 22.1 37.7 42.6 30.1 26.7 35.9 29.0 129.4 120.1 5.0 4.4

Dabur India Neutral 102 - 17,839 5,878 6,799 16.8 17.0 4.2 4.9 24.7 20.8 9.0 7.3 39.3 42.0 3.1 2.6

GlaxoSmith Con* Neutral 2,764 - 11,624 3,124 3,663 17.1 11.6 103.0 123.3 26.9 22.4 8.3 6.6 34.0 32.9 3.4 2.8

Godrej Consumer Neutral 549 - 18,698 5,973 7,000 18.4 18.6 22.8 27.2 24.1 20.2 6.6 5.3 31.3 38.4 3.3 2.8

HUL Neutral 413 - 89,162 25,350 29,309 14.3 14.4 14.1 16.4 29.2 25.2 21.8 17.1 82.7 76.2 3.3 2.9

ITC Accumulate 230 252 179,980 29,638 34,159 35.4 35.8 9.3 10.9 24.6 21.1 8.0 6.5 35.3 33.8 5.8 5.0


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FMCG

Marico Neutral 168 - 10,821 4,667 5,427 12.8 12.9 6.6 8.1 25.3 20.7 6.8 5.3 30.0 28.8 2.3 2.0

Nestle* Neutral 4,528 - 43,652 8,731 10,539 21.0 21.4 119.3 147.9 38.0 30.6 23.3 15.8 73.0 61.6 5.0 4.1

Tata Global Buy 105 136 6,465 7,011 7,711 9.7 10.0 6.3 7.5 16.7 14.0 1.6 1.5 9.5 10.9 0.8 0.8

IT

HCL Tech Accumulate 494 560 34,205 22,792 25,743 17.4 17.4 37.8 43.0 13.1 11.5 2.9 2.4 22.3 21.3 1.5 1.3

Hexaware Neutral 122 - 3,609 1,821 2,105 19.0 18.6 9.8 10.7 12.4 11.4 2.9 2.5 23.7 22.5 1.7 1.4

Infosys Buy 2,388 2,792 137,146 37,615 42,491 31.1 30.6 158.5 174.5 15.1 13.7 3.4 2.9 22.5 20.8 3.0 2.5Infotech Enterprises Neutral 171 - 1,904 1,758 1,972 17.0 16.6 16.8 18.6 10.2 9.2 1.4 1.2 13.6 13.2 0.7 0.6

KPIT Cummins Reduce 120 114 2,141 2,028 2,239 15.0 14.8 9.0 11.4 13.4 10.5 2.4 2.0 19.3 18.7 1.0 0.9

Mahindra Satyam Buy 74 86 8,761 7,097 7,812 16.2 16.0 7.5 8.0 9.9 9.4 1.3 1.2 13.2 12.3 0.8 0.7

Mindtree Neutral 620 - 2,522 2,172 2,450 16.1 15.5 53.9 58.5 11.5 10.6 2.2 1.8 18.9 17.0 1.0 0.8

Mphasis Buy 365 433 7,678 5,904 6,320 18.3 17.9 38.7 41.2 9.4 8.9 1.4 1.2 14.9 13.7 0.8 0.7

NIIT Buy 40 52 668 1,162 1,304 14.8 15.1 7.1 8.8 5.7 4.6 1.0 0.8 16.7 18.4 0.4 0.3

Persistent Neutral 345 - 1,378 1,109 1,224 23.3 22.4 37.2 40.1 9.3 8.6 1.4 1.2 15.4 14.5 0.9 0.8

TCS Accumulate 1,213 1,276 237,460 57,189 66,329 29.3 28.7 63.2 70.9 19.2 17.1 5.9 4.7 30.5 27.7 3.9 3.3

Tech Mahindra Accumulate 660 725 8,416 5,880 6,314 15.6 15.2 75.9 82.2 8.7 8.0 1.8 1.5 20.1 18.1 1.4 1.2

Wipro Accumulate 397 430 97,702 41,918 46,879 19.4 19.9 25.1 28.7 15.9 13.9 3.0 2.5 18.6 18.3 2.0 1.6

Media

D B Corp Buy 195 269 3,566 1,652 1,863 25.7 26.3 13.5 16.1 14.4 12.1 3.2 2.7 24.1 24.4 2.1 1.8

HT Media Buy 109 148 2,562 2,255 2,555 16.3 16.7 9.0 10.6 12.1 10.3 1.5 1.3 13.4 13.8 0.7 0.6

Jagran Prakashan Buy 88 137 2,785 1,499 1,642 27.4 28.8 7.6 9.1 11.5 9.7 3.9 3.5 34.6 37.7 1.8 1.7

PVR Neutral 155 - 402 625 732 17.4 16.9 12.4 15.8 12.5 9.8 2.0 2.1 8.5 9.9 0.8 0.7

Sun TV Network Neutral 225 - 8,863 2,135 2,458 75.2 74.4 20.9 24.0 10.8 9.4 2.5 2.1 26.0 25.1 3.1 2.4Metals & Mining

Bhushan Steel Neutral 434 - 9,225 9,232 13,557 30.8 31.1 48.0 58.6 9.0 7.4 1.2 1.0 14.5 7.5 3.1 2.2

Coal India Accumulate 320 353 201,997 68,841 74,509 25.3 25.3 24.1 26.1 13.3 12.2 3.6 3.0 30.4 26.8 2.0 1.7

Electrosteel Castings Buy 17 27 590 1,984 2,074 10.6 12.0 2.7 3.3 6.3 5.2 0.3 0.1 5.2 6.2 0.4 0.4

Hind. Zinc Buy 116 139 48,950 13,043 14,223 51.8 52.8 14.8 16.6 7.8 7.0 1.5 1.3 21.2 19.9 2.0 1.4

Hindalco Neutral 115 - 22,075 84,652 88,766 9.6 10.5 17.0 18.9 6.8 6.1 0.6 0.6 9.7 9.8 0.5 0.5

JSW Steel Accumulate 610 663 13,599 39,592 44,910 18.0 17.7 74.7 88.9 8.2 6.9 0.8 0.7 10.7 11.6 0.7 0.7

MOIL Accumulate 263 296 4,415 1,007 1,091 56.6 56.9 29.4 31.9 8.9 8.2 1.6 1.4 19.0 18.2 2.2 1.8

Monnet Ispat Buy 363 593 2,333 3,115 3,748 22.1 25.1 59.1 66.8 6.1 5.4 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 58 54 14,909 8,474 9,024 12.6 16.2 2.6 3.6 22.6 16.1 1.2 1.2 5.6 7.5 1.3 1.3

NMDC Accumulate 165 187 65,497 11,959 13,062 78.2 78.6 19.1 20.9 8.7 7.9 2.1 1.8 27.1 24.4 3.4 2.9

SAIL Accumulate 92 102 37,980 52,461 62,935 18.0 18.8 13.2 14.5 7.0 6.3 0.8 0.7 12.4 12.3 1.1 1.0

Sesa Goa Buy 178 206 15,435 9,067 9,316 35.7 35.5 44.5 44.3 4.0 4.0 0.9 0.7 23.5 19.5 0.3 -

Sterlite Inds Buy 89 123 29,943 45,805 49,029 21.2 23.5 16.5 19.1 5.4 4.7 0.6 0.5 11.5 12.0 0.3 0.2

Tata Steel Buy 403 499 39,101 143,088 148,011 10.9 12.1 53.9 66.0 7.5 6.1 0.9 0.8 12.2 13.4 0.6 0.6

Oil & GasCairn India Buy 307 372 58,513 15,513 16,074 74.0 69.7 51.1 48.6 6.0 6.3 1.0 0.9 18.3 14.8 2.6 1.9

GAIL Buy 320 392 40,528 50,472 55,503 15.3 15.6 35.4 37.0 9.0 8.6 1.6 1.4 18.7 17.0 0.5 0.4

ONGC Buy 254 319 217,438 148,157 150,563 37.6 39.5 31.0 33.6 8.2 7.6 1.5 1.3 18.8 18.1 1.1 1.0

Reliance Industries Buy 693 872 226,812 325,734 328,669 10.9 11.7 65.8 70.1 10.5 9.9 1.1 1.0 11.9 11.5 0.7 0.6

Pharmaceuticals

Alembic Pharma Buy 48 91 910 1,624 1,855 14.2 15.6 6.6 9.1 7.3 5.3 1.8 1.4 27.5 29.2 0.8 0.7

Aurobindo Pharma Buy 106 156 3,074 5,243 5,767 14.6 14.6 13.8 14.7 7.7 7.2 0.9 0.4 11.4 10.9 0.7 0.6

Aventis* Neutral 2,093 - 4,821 1,482 1,682 15.5 15.5 95.0 104.0 22.0 20.1 3.9 3.0 18.6 17.0 3.0 2.6

Cadila Healthcare Buy 716 953 14,661 6,196 7,443 18.5 19.5 43.3 50.8 16.5 14.1 4.3 3.4 25.4 24.8 2.4 1.9

Cipla Buy 305 379 24,453 7,687 8,804 21.4 21.4 16.5 18.9 18.5 16.1 2.9 2.5 16.7 16.8 3.1 2.7

Dr Reddy's Neutral 1,622 - 27,493 10,696 11,662 20.7 21.0 83.7 92.9 19.4 17.5 4.0 3.4 22.4 21.0 2.7 2.4

Dishman Pharma Buy 49 92 396 1,280 1,536 17.8 17.8 9.2 11.3 5.3 4.3 0.4 0.4 7.7 8.5 1.0 0.8

GSK Pharma* Neutral 1,984 - 16,808 2,651 2,993 31.7 31.2 76.0 82.4 26.1 24.1 7.5 6.5 30.8 29.0 5.4 4.7

Indoco Remedies Buy 54 82 497 685 837 15.2 15.2 7.4 8.9 7.3 6.1 1.1 0.9 15.9 16.3 0.9 0.7

Ipca labs Buy 340 435 4,279 2,850 3,474 20.3 20.3 26.6 32.7 12.8 10.4 3.3 2.6 28.2 27.9 1.7 1.4

Lupin Buy 533 646 23,815 8,426 10,082 19.7 20.0 29.7 32.4 18.0 16.5 4.7 3.7 27.0 25.2 2.7 2.2Orchid Chemicals Buy 120 178 844 2,117 2,434 17.7 17.7 16.7 22.2 7.2 5.4 0.7 0.6 9.5 11.5 1.1 0.9

Ranbaxy* Neutral 489 - 20,646 12,046 11,980 18.0 15.8 35.7 29.8 13.7 16.4 5.1 4.2 43.1 28.1 1.7 1.7

Sun Pharma Neutral 564 - 58,133 9,272 11,080 38.6 38.0 22.7 22.6 24.9 25.0 4.2 3.7 17.9 15.6 5.0 3.9

Power

CESC Buy 266 342 3,318 5,084 5,512 24.2 23.8 45.2 48.5 5.9 5.5 0.6 0.6 11.2 10.9 1.1 1.1

GIPCL Buy 59 77 890 1,557 1,573 28.8 28.5 10.4 10.9 5.7 5.4 0.6 0.5 10.4 10.2 1.0 0.9

NTPC Accumulate 144 158 118,817 74,766 86,549 23.1 23.4 12.4 14.1 11.6 10.2 1.5 1.3 13.0 13.5 2.3 2.1

Real Estate

Anant Raj Buy 47 78 1,375 657 875 52.0 56.1 8.4 12.7 5.5 3.7 0.3 0.3 6.3 8.9 3.4 2.5

DLF Neutral 186 - 31,590 9,878 12,033 44.7 46.1 9.6 13.4 19.4 13.9 1.2 1.2 6.4 8.7 5.7 4.7


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Market Outlook

Stock Watch


11/12



Real Estate

HDIL Buy 65 115 2,721 2,441 3,344 53.0 46.7 21.4 25.4 3.0 2.6 0.2 0.2 8.4 9.1 3.0 2.2

Telecom

Bharti Airtel Neutral 295 - 111,894 80,967 88,684 33.1 33.4 17.9 22.0 16.5 13.4 1.9 1.7 11.5 12.5 2.1 1.7

Idea Cellular Neutral 76 - 25,234 22,558 25,326 26.4 27.5 3.2 4.7 23.7 16.1 1.8 1.6 7.5 10.0 1.6 1.4

Rcom Neutral 63 - 12,962 21,899 23,740 32.7 32.7 4.2 6.7 14.8 9.4 0.3 0.3 2.1 3.2 2.0 1.6

zOthers

Bajaj Electrical Buy 175 245 1,745 3,670 4,384 8.5 8.5 18.3 22.3 9.6 7.9 2.1 1.7 23.9 24.3 0.5 0.4CRISIL Neutral 1,051 - 7,374 982 1,136 34.3 34.3 34.3 40.0 30.6 26.3 13.9 11.1 50.9 46.9 7.1 6.0

Finolex Cables Buy 37 61 562 2,334 2,687 8.8 9.3 7.6 10.2 4.8 3.6 0.6 0.5 13.7 16.1 0.2 0.1

Graphite India Buy 88 124 1,720 2,158 2,406 18.1 18.9 12.4 14.0 7.1 6.3 1.0 0.9 14.0 14.3 0.9 0.8

Greenply Buy 213 298 514 1,800 2,047 11.1 11.6 34.1 49.6 6.3 4.3 1.2 0.9 20.2 23.7 0.5 0.4

Page Industries Neutral 2,933 - 3,271 935 1,168 19.6 19.6 99.7 122.2 29.4 24.0 17.0 13.6 64.2 63.1 3.6 2.8

Sintex Buy 52 129 1,420 4,751 5,189 16.3 16.6 13.6 15.8 3.8 3.3 0.5 0.4 13.1 13.4 0.7 0.5

Siyaram Silk Mills Buy 255 439 239 1,042 1,173 12.4 12.5 66.3 78.5 3.9 3.3 0.7 0.6 21.1 20.8 0.5 0.4

SpiceJet Neutral 30 - 1,436 5,384 6,443 (1.0) 4.1 (3.4) 2.4 (8.7) 12.4 (12.0) 25.3 - - 0.5 0.4

Taj GVK Buy 59 108 368 300 319 35.8 36.2 7.9 9.1 7.4 6.5 1.0 0.9 13.9 14.4 1.5 1.3

Goodyear Buy 320 372 738 1,571 1,753 7.2 8.6 29.8 42.4 10.7 7.5 2.0 1.7 20.2 24.3 0.3 0.2

HEG Buy 197 242 787 1,746 1,946 16.5 17.7 22.5 32.9 8.7 6.0 0.9 0.8 10.4 14.2 1.1 1.0

Hitachi Buy 114 160 261 857 968 6.9 8.4 10.2 16.0 11.2 7.1 1.4 1.2 12.9 17.8 0.4 0.3

Honeywell Automation Accumulate 2,544 2,674 2,249 1,542 1,739 9.4 10.0 116.1 140.8 21.9 18.1 3.1 2.7 15.5 15.9

Ineos ABS Accumulate 727 777 1,279 900 1,011 10.2 11.5 35.6 45.7 20.4 15.9 3.0 2.6 15.4 17.2

ITD Cementation Accumulate 221 236 254 1,535 1,842 11.1 11.1 27.3 38.3 8.1 5.8 0.6 0.6 7.9 10.2 0.6 0.6

MRF Buy 10,661 13,106 4,521 12,390 14,400 10.4 11.3 1,334.6 1,638.2 8.0 6.5 1.6 1.3 16.5 17.4 0.6 0.5Relaxo Neutral 464 - 557 1,019 1,208 11.0 10.8 44.9 53.1 10.3 8.7 2.5 2.0 27.2 25.0 0.7 0.6

Tata Sponge Buy 274 420 422 757 875 19.0 19.1 63.5 72.9 4.3 3.8 0.7 0.6 16.1 16.1 0.1 -

TVS Srichakra Buy 315 462 241 1,612 1,827 9.5 9.8 72.3 92.5 4.4 3.4 1.3 1.0 33.1 32.1 0.4 0.3

Vesuvius India Accumulate 373 413 758 628 716 16.4 16.5 29.8 34.4 12.5 10.9 2.2 1.9 18.8 18.6 1.0 0.9

Abbott India Buy 1,407 1,628 2,990 1,661 1,918 9.7 12.0 60.7 90.4 23.2 15.6 4.8 3.9 22.0 27.3 1.6 1.3

Cera Sanitaryware Ltd Accumulate 252 288 319 385 444 17.2 17.4 28.9 32.0 8.7 7.9 1.8 1.5 23.4 21.1 1.0 0.9

Jyothy Laboratories Buy 214 268 1,724 1,315 1,568 8.6 11.1 6.4 10.9 33.5 19.7 2.8 2.7 8.4 13.9 1.6 1.3

Force Motors Buy 437 680 569 2,346 2,753 6.7 7.0 50.9 61.9 8.6 7.1 0.5 0.5 5.5 6.3 0.2 0.2

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on June 04, 2012


June 05, 2012

Market Outlook

Stock Watch


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June 05, 2012Market Outlook

Market Outlook 050612

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