Market Outlook 20th October 2011

8/3/2019 Market Outlook 20th October 2011

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Please refer to important disclosures at the end of this report Sebi Registration No: INB 010996539 1

Market OutlookIndia Research

October 20, 2011

Dealers DiaryThe Indian markets are expected to edge lower tracing weakness in Asianmarkets in the early market trade. The domestic benchmark indices staged a

strong recovery yesterday, following advances in the European bourses overrenewed hopes of the eurozone bailout fund. Decent profits and no majornegative surprises in the corporate earnings season also weighed positively onthe markets.

Global cues remained mixed Europes economic roller-coaster ride continuedwith Moodys downgrading Spains credit rating by two notches (A1from Aa2).US indices closed on a weak note, reacting to Federal Reserves report oneconomic strength which indicated persistent weakness.

On the domestic front, the market is relishing the positive vibes and may holdstrong breadth for some time. However, clues from global space arent lookingpromising pessimism surrounding the euro zone can reverse market directions.

The crucial corporate earnings seasons has gathered steam and will remain asan overhang to the market.

Markets TodayThe trend deciding level for the day is 17,022/5,121 levels. If NIFTY tradesabove this level during the first half-an-hour of trade then we may witness afurther rally up to 17,170 17,255 / 5,166 5,194 levels. However, if NIFTYtrades below 17,022/5,121 levels for the first half-an-hour of trade then it maycorrect up to 16,937 16,790 / 5,094 5,048 levels.

Indices S2 S1 R1 R2SENSEX 16,790 16,937 17,170 17,255

NIFTY 5,048 5,094 5,166 5,194

News Analysis Upcoming event Meeting of the Heads of State of the Euro area September 2011 GSM net subscriber addition IVRCL bags orders worth `552cr 2QFY2012 Result Reviews HDFC Bank, Hindustan Zinc, Crompton

Greaves, Indraprastha Gas, Infotech Ent., Alembic Pharma. 2QFY2012 Result Previews Cairn India, Baja Auto, UltraTech, Exide, IDBI,

Yes Bank, Thermax, Hexaware, FAG Bearings, KPIT, IndocoRefer detailed news analysis on the following page

Net Inflows (October 18, 2011)

` cr Purch Sales Net MTD YTDFII 1,808 2,057 (249) (382) (2,335)MFs 451 526 (75) 273 5,770

FII Derivatives (October 19, 2011)

` cr Purch Sales Net Open InterestIndex Futures 3,648 3,371 276 13,973

Stock Futures 5,505 5,401 105 29,608

Gainers / Losers

Gainers LosersCompany Price (`) chg (%) Company Price (`) chg (%) ABB 713 7.4 Crompton Greaves 144 (12.2)

Coromandel Intl 326 6.1 Patni Computer 331 (2.0) Aban Offshore 412 5.1 Exide Inds 131 (2.0)

Neyveli Lignite 80 4.6 Sesa Goa 215 (1.8)

Oracle Fin 2,154 4.5 Amtek Auto 135 (1.6)

Domestic Indices Chg (%) (Pts) (Close)BSE Sensex 2.0 337.1 17,085

Nifty 2.0 101.7 5,139MID CAP 1.3 80.1 6,195

SMALL CAP 0.7 44.3 6,899

BSE HC 1.5 89.9 5,945

BSE PSU 1.7 122.7 7,475

BANKEX 2.7 295.5 11,266

AUTO 1.8 160.2 9,001

METAL 1.8 200.3 11,320

OIL & GAS 2.3 194.1 8,744

BSE IT 1.3 72.5 5,535

Global Indices Chg (%) (Pts) (Close)Dow Jones (0.6) (72.4) 11,505

NASDAQ (2.0) (53.4) 2,604

FTSE 0.7 40.1 5,450

Nikkei 0.4 30.6 8,773

Hang Seng 1.3 232.8 18,309

Straits Times (0.2) (4.5) 2,720

Shanghai Com (0.3) (6.0) 2,378

Indian ADRs Chg (%) (Pts) (Close)Infosys (0.9) (0.5) $55.0

Wipro (1.1) (0.1) $9.6

ICICI Bank (2.4) (0.9) $35.7

HDFC Bank 0.9 0.3 $32.1

Advances / Declines BSE NSE Advances 1,670

Declines 1,136 467

Unchanged 119 95

Volumes (` cr)BSE 2,448

NSE 9,490


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MarketOutlook|IndiaResearch

October 20, 2011 2

Upcoming event Meeting of the Heads of State of the Euro areaThere are some unconfirmed reports in the European media citing that Franceand Germany have agreed to boost the European Financial Stability Facility(EFSF) to EUR2trn from EUR440bn. The two nations are also in favor ofrecapitalizing the regions banks to meet a 9% capital ratio that may berequired by the European Banking Authority. However, there are also otherreports doing the rounds that have dismissed these reports (increment in EFSF)as rumors. Also, the German constitutional court could impede thegovernment from adding to the funds already committed for resolving the debtcrisis.

The heads of the state of the Euro area would meet on October 23, 2011, inBrussels to continue with their objective of resolving the European sovereigndebt crisis. While German chancellor, Angela Merkel, has played down aquick fix to the debt crisis, the meeting on October 23, 2011, would give more

clarity on the total funds committed by Germany and France to the EFSF. Anyincrease in the EFSF is expected to be taken in positively and could extend therally that has been witnessed in the markets recently.

September 2011 GSM net subscriber additionCellular Operators Association of India (COAI) reported GSM subscriber datafor September 2011, which was showing a declining trend since March 2011,grew in September 2011. Net subscriber addition number stood at 6.5mn, up22% mom, taking the total GSM subscriber base to 618.3mn in September2011. Even though the mom declining trend in subscriber net addition was

altered, GSM subscriber net addition data was weak across all telecomoperators (except BSNL and Uninor).

Weakness across the board: In September 2011, net addition run rate onmom basis for all operators (except BSNL and Uninor) dropped off again.

Amongst incumbents, Bharti and Vodafone reported a significant decline in netsubscriber addition numbers, with net addition numbers dropping to merely0.9mn and 0.8mn, down 18.6% and 25.1% mom, respectively, which led to adecline in their subscriber market share by 20bp and 10bp to 27.9% and23.5%, respectively. Idea, which bucked the declining trend in subscriber netaddition in August 2011, reported a 25.4% mom decline in subscriber netadditions in September 2011 to 1.7mn. BSNL emerged as the dark horse by

reporting a whopping 16.1% mom jump in subscriber net additions to 0.5mn.Aircel reported almost flat mom subscriber net additions at 0.6mn.

Among new operators, Videocon reported a net decline of 0.1mn subscribersin its subscriber base. Net subscriber addition of S Tel and Loop Mobiledeclined by 193.0% and 21.7% mom, as these operators added merely0.1mn and 0.01mn subscribers, respectively. Unlike other players, Uninorreported a whopping 448% mom jump in subscriber net addition by adding1.9mn subscribers, which led to a 30bp qoq increase in its subscriber marketshare to 4.8%.

Circle-wise highlights: In September 2011, net addition run rate of all circles(except A circle) improved, the highest being for B circle, which reported

addition of 3.2mn subscribers, up 60.7% mom from 2.0mn in August 2011.This led to an increase in net subscriber addition market share of B circle to48.7% from 37.0%. For September 2011, in the Metro circle, 0.6mnsubscribers were added, up 44.3% mom, with Aircel reporting the highest net


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addition of 0.16mn subscribers, followed by Idea, Vodafone and Bharti, whichreported 0.15mn, 0.13mn and 0.09mn net subscriber additions, respectively.Subscriber addition run rate of A circle declined by 16.4% mom to 1.9mn asagainst 2.3mn in August 2011. Subscriber addition in C circle stood at 0.8mn

from 0.6mn in August 2011, up 30.2% mom.

For Bharti and Idea, such a decline in net subscriber additions was alongexpected lines; thus, our estimates remain unchanged. The driving force forthe overall sector is the increase in tariff rates as well as increasing use ofvalue-added services, which will lead to higher ARPU for all players, therebyaiding profitability. Bharti continues to be a better bet due to its low-costintegrated model (owned tower infrastructure), potential opportunity to scaleup in Africa, established leadership in revenue and subscriber marketshare and relatively better KPIs. However, overall we remain Neutral on thetelecom sector.

IVRCL bags orders worth `552crIVRCL has bagged orders aggregating to `552.3cr across the buildings,transportation and water divisions. The buildings division is the majorcontributor, with orders worth `418.5cr, followed by the transportation division(`74.5cr) and the water division (`59.3cr). With these orders, IVRCLs orderbook stands at ~`24,331cr (4.3x FY2011 revenue). Also, the total orderinflow for IVRCL Group for 2QFY2012 stands at ~`2,781cr. This is positive forthe company as there has been a dry spell of order inflow across sectors sincethe last few quarters, with the road sector being the only exception.

We have valued IVRCL on an SOTP basis. The companys core constructionbusiness is valued at P/E of 7x FY2013E EPS of `6.1 (`42.7/share), whereas itsstake in subsidiaries, IVRCLAH (`12.8/share) and Hindustan Dorr-Oliver(`4.5/share), has been valued on mcap basis, post assigning a 20% holdingcompany discount. At the CMP of `37, the stock is trading at P/E of 6.0xFY2013E EPS and 0.4x FY2013E P/BV on standalone basis and adjusting forits subsidiaries at P/E of 3.2x FY2013E EPS, which we believe is at attractivevaluations. Therefore, on the back of the companys robust order book tosales ratio and attractive valuations, we maintain our Buy view on the stockwith a target price of `60.

Result ReviewsHDFC BankFor 2QFY2012, HDFC Bank reported healthy 31.5% yoy growth in its netprofit to `1,199cr, in line with our as well as street estimates. Moderate NIMcompression coupled with largely steady asset quality was the key highlight ofthe results.

Another quarter of steady performance: Adjusting for the short-term one-offwholesale loans, gross advances growth moderated a bit to 25.6% yoy.

Deposits accretion picked up a bit to 18.1% yoy, primarily driven by rise infixed deposits. The banks CASA ratio remains amongst the best in the industryat 47.3% (49.1% in 1QFY2012) despite the recent moderation in the pace ofgrowth. Due to the sharp rise in FD rates over the past one year, CASAdeposits growth moderated considerably to 10.3% yoy. The bank was able to


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restrict the reported NIM compression to a marginal 10bp qoq at 4.1% due toits relatively aggressive hike in lending rates. Asset quality remained largelyhealthy with gross and net NPA ratios remaining stable at 1.0% and 0.2%,respectively. Slippages stood at ~1.0% compared to 0.9% in 1QFY2012 and

0.8% in FY2011. NPA coverage excluding technical write-offs also remainedhealthy at 81.3% (82.6% in 1QFY2012). The bank made `240cr of floatingand general provisions during 2QFY2012. Branch expansion continued thetraction, with opening of 164 branches in 1HFY2012 to take the network to2,150 branches.

We believe HDFC Bank is well positioned for high qualitative growth, withCASA and cost-to-income ratio returning to pre-CBoP levels. In our view, withstrong capital adequacy and healthy branch expansion, the bank is set tofurther gain credit and CASA market share. However, given the currentvaluations at 3.3x FY2013E ABV, we believe the positives are largely factoredin the price and the upside is likely to be limited from current levels. Hence, wemaintain our Accumulate recommendation on the stock with a target price of`519, implying an upside of 5.3% from current levels.

Hindustan ZincFor 2QFY2012, Hindustan Zincs (HZL) net revenue increased by 19.9% yoy to`2,593cr (in-line with our estimate of `2,643cr) on account of higher salesvolume and realization. Zinc, lead and silver sales volumes grew by 5.0%,1.6% and 12.4% yoy to 184kt, 15kt and 41,454kg, respectively. Average zinc,lead and silver realization increased by 7.4%, 14.2% and 96.6% yoy,respectively. EBITDA margin expanded by 445bp yoy to 56.5% on account of

higher realization. EBITDA grew by 30.2% yoy to `1,465cr. Further, otherincome was higher by 110.2% yoy to `387cr, which resulted in net profitgrowth of 41.7% yoy to `1,345cr despite depreciation increasing by 25.6% yoyto `146cr and higher tax rate at 19.5%. Excluding exceptional items (`24cr in2QFY2012 and `21cr in 2QFY2011), adjusted net profit grew by 41.1% yoyto `1,369cr (higher than our estimate of `1,265cr). HZLs cash andequivalents stood at `16,296cr at the end of 2QFY2012(cash per share - `38.6). We continue to maintain our Buy view on the stock;our target price is under review.

Crompton GreavesCrompton Greaves (CG) announced its 2QFY2012 results, which were belowstreet expectations but in-line with our expectations. Top line grew by 12.8%yoy to `2,706cr (`2,398cr), which was 6.4% higher than our expectation of`2,542cr. Growth was largely driven by the industrial segment, which postedhandsome 29.1% yoy growth to `465.5cr (`360.6cr). The power systemsegment delivered a decent performance (11.6% yoy growth to `1,761cr)mainly on account of robust revenue growth on the international front (24.8%yoy to `1,162cr), which covered up the poor performance on the domesticfront (down by 7.0% yoy to `598.8cr). The consumer segment posted mutedgrowth of 3.6% yoy to `480.1cr (`463.4cr), which was on expected lines dueto a consistent increase in interest rates and inflationary pressures.

EBITDA margin witnessed a steep contraction of ~560bp yoy to 8.4%, whichwas in-line with our estimates of 9.0%, primarily driven by high raw-materialcosts, which rose by 630bp yoy as a proportion to sales. Margin erosion wasmainly attributable to the power system segment (both domestic and


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international segments), which has been facing increased cost and pricingpressures. The same was the picture with the industrial and consumersegments, as these segments also reeled under margin pressure. Reported PATdeclined sharply by 45.4% to `116.7cr, 20% below street expectations

(`144.0cr) and in-line with our expectations (`115.8cr).

At the CMP of `144, the stock is trading at 14.6x and 9.4x its FY2012E andFY2013E EPS, respectively. Currently, the stock is under review. We will reviseour estimates and recommendation post the conference call.

Indraprasth GasIndraprastha Gas reported its 2QFY2012 results. Net sales growth of 34.0%yoy to `597cr was driven by higher sales as well as realization. CNG and PNGvolumes increased by 14.4% and 62.2% yoy to 177.4mn kg and 68.2mmscm,

respectively. Average CNG realization increased by 8.5% yoy to `29.6/kg,mainly due to hike in prices of CNG from `29.8/kg to `30/kg. Average PNGrealization increased by 45.5% yoy to `20.4/scm as the company had hikedprice by `3/scm during September 2011. However, raw-material costsincreased by 40.7% yoy to `358cr. Hence, despite higher growth in net sales,EBITDA grew only by 27.4% yoy to `158cr in 2QFY2012. EBITDA marginslipped by 303bp yoy to 26.4% in 2QFY2012. Further, interest expense stoodat `12cr in 2QFY2012 compared to `2cr in 2QFY2011. Hence, net profitgrew by 17.8 % yoy to `77cr. We maintain our Neutral view on the stock.

Infotech EnterprisesFor 2QFY2012, Infotech Enterprises reported good set of results. USD revenuecame in at US$81.4mn, up 5.0% qoq, on the back of 5.0% qoq volumegrowth. The network and content engineering vertical witnessed volumegrowth of 6.4% qoq, while the engineering manufacturing and industrialproducts vertical reported 4.1% qoq volume growth. In INR terms, revenuecame in at `372.7cr, up 7.5% qoq, on account of 1) 5.0% qoq volume growth,2) 0.3% qoq positive impact because of increased price realization and 3)2.2% qoq gain on the back of INR depreciation against USD in 2QFY2012.The company reported 318bp and 321bp expansion in its EBITDA and EBITmargins to 15.7% and 12.7%, respectively, on the back of 190bp qoq positiveimpact derived from higher operational efficiency, which was partially because

of higher utilization level, 100bp qoq gain from qoq INR depreciation againstUSD and 30bp positive impact on account of increased price realization. PATcame in at `31cr, impacted by forex loss. The stock is currently under reviewwe will be releasing a detailed result update shortly.


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Alembic PharmaceuticalsFor 2QFY2012, Alembic Pharmaceuticals results came in much ahead ofexpectations. Sales came in at `398cr, reporting growth of 24% yoy, mainly

driven by 79% growth of international generics along with 10% growth in thedomestic formulation business. The domestic formulation business posted salesof `226.92cr (`206.83cr in 2QFY2011, registering 10% yoy growth). Thecompany has maintained a market share of 1.86%. EBITDA margin came in at15.2%, an expansion of 200bp yoy vis--vis 13.2%. This lead to 43% growthin operating profit. Consequently, net profit grew by 51% yoy. At the CMP, thestock is trading at 9.1x FY2012 and 7.6x FY2013E earnings. We maintain ourBuy view on the stock with a target price of `71.

Result PreviewsCairn IndiaCairn India is slated to report its 2QFY2012 results. Net sales are expected togrow by 33.6% to `3,590cr on the back of rise in crude oil prices, while thebottom line is expected to decline by 87.5% yoy to `214cr on account ofroyalty reimbursement to ONGC for Cairn India's respective production.

As per the new agreement between the two companies, Cairn India will payroyalty for its share of production retrospectively. We maintain our Neutralview on the stock.

Bajaj AutoBajaj Auto is slated to announce its 2QFY2012 results. We expect thecompanys top line to grow strongly by 19% yoy to `4,960cr, led by 16.3% yoygrowth in volumes and increased average net realization. On the operatingfront, EBITDA margin is expected to decline by 127bp yoy to 19.4%. However,the bottom line is expected to witness 14% yoy growth to `776cr. The stockrating is under review.

UltraTech CementUltraTech Cement is expected to announce its 2QFY2012 results. Thecompany is expected to post top-line growth of 31.2% yoy to `4,216cr. Therobust performance on the top-line front is expected to be primarily onaccount of higher realization. OPM is expected to expand by 848bp yoy to22.1% due to better realizations. The companys bottom line is expected togrow by 285% yoy to `445cr. We maintain our Neutral view on the stock.

Exide IndustriesExide Industries is slated to announce its 2QFY2012 results. We expect the

companys top line to grow modestly by 7% yoy to `1,200cr, mainly due toslowdown in automotive OEM demand. EBITDA margin is expected to declineby 444bp yoy to 17.3% due to a yoy increase in average lead price and price


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cuts to counter competitive pressures. Hence, the bottom line is expected topost a 16% yoy decline to `140cr. The stock rating is under review.IDBI BankIDBI Bank is scheduled to announce its 2QFY2012 results. We expect the bankto report a marginal decline in NII (down 1.2% yoy) to `1,154cr. Non-interestincome is also expected to be weak (down 2.6% yoy) at `479cr. Operatingexpenses are expected to increase by 0.6% yoy (substantial 15.5% qoq), whileprovisioning expenses are expected to decline by 8.3% yoy. PAT is expected tocome in at `413cr, down 3.7% yoy (up by strong 23.3% qoq). At the CMP, thestock is trading at 0.7x FY2013E ABV. We remain Neutral on the stock.

Yes BankYes Bank is slated to announce its 2QFY2012 results. We expect the bank toreport healthy NII growth of 16.9% yoy on the back of ~10bp improvement incalculated NIM. Non-interest income is expected to rise strongly by 41.6% yoy.The cost-to-income ratio is expected to increase to 37.9% compared to 37.4%in 1QFY2012 (36.6% in 2QFY2011). Pre-provision profit is expected toregister 21.7% yoy growth, while net profit is expected to increase by healthy22.7% yoy to `216cr. At the CMP, the stock is trading at 1.9x FY2013E ABV.We maintain our Accumulate rating on the stock with a target price of `321.

ThermaxThermax is slated to announce its 2QFY2012 results. The top line is expectedto post subdued growth of 7.0% yoy to `1,168cr, mainly due to high baseeffect of 2QFY2011. On the EBITDA front, margin is expected to compress by68bp yoy to 11.1% due to higher execution of lower-margin EPC contracts.

A combination of subdued revenue growth and margin contraction is expectedto result in PAT of `89.5cr. We remain Neutral on the stock.

HexawareHexaware is slated to announce its 3QCY2011 results. We expect thecompany to post revenue growth of 5.5% qoq to US$78.9, majorly led byvolume growth. In INR terms, revenue is expected to come in at `360cr, up7.9% qoq. EBITDA margin is expected to expand by 41bp qoq to 15.7%as the impact of wage hike (given in 2QCY2011) on margins will be partiallyabsorbed. PAT is expected to come in at `57cr. We remain Neutralon the stock

FAG Bearings 3QCY2011FAG Bearings is set to announce its 3QCY2011 results. We expect the

company to deliver 14% yoy growth in revenue to `308cr. On the operatingfront, we expect the company to post a 133bp yoy improvement in itsoperating profit margin to 19%. Thus, net profit is expected to increasesubstantially by 28% yoy to `40cr. The stock rating is under review.


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KPIT CumminsKPIT Cummins is scheduled to announce its 2QFY2012 results. We expect thecompany to post revenue of US$70.8mn, up 1.0% qoq (lower growth due to

higher base), majorly led by volume growth. In INR terms, revenue is expectedto come in at `324cr, up 2.3% qoq. EBITDA margin is expected to expand by256bp qoq to 15.1%, as the negative impact of wage hikes given in1QFY2011 will be absorbed by volume growth, efficiency gains and INRdeprecation. PAT is expected to come in at `29cr, aided by share of profitsfrom Systime. We remain Neutral on the stock.

Indoco RemediesFor 2QFY2012, Indoco Remedies is expected to report revenue of `148cr,registering growth of 12% yoy. The companys gross margin is expected toexpand by 225bp yoy to 56.5%, which is expected to end at 15.1%.Consequently, the company is expected to report net profit growth of 18.8%yoy. At the CMP, the stock is trading at 7.3x FY2012E and 5.9x FY2013Eearnings. We maintain our Buy view on the stock with a target price of `665.

Quarterly Bloomberg Brokers Consensus EstimatesBajaj Auto Ltd. (20/10/2011)

Particulars (` cr) 2QFY12E 2QFY11 yoy (%) 1QFY12 qoq (%)Net sales 5,073 4,181 21.3 4,587 10.6EBITDA 975 897 8.7 911 7

EBITDA margin (%) 19 21 - 20 -

Net profit 767 682 12.5 711 7.9

Source: Bloomberg

Cairn India Ltd. - Consolidated (20/10/2011)

Particulars (` cr) 2QFY12E 2QFY11 yoy (%) 1QFY12 qoq (%)Net sales 3,390 2,686 26.2 3,713 (8.7)

EBITDA 2,532 2,132 18.8 3,156 (19.8)

EBITDA margin (%) 75 79 - 85 -Net profit 1,212 1,585 (23.5) 2,727 (55.5)

Source: Bloomberg

Exide Industries Ltd. (20/10/2011)

Particulars (` cr) 2QFY12E 2QFY11 yoy (%) 1QFY12 qoq (%)Net sales 1,239 1,127 10 1,244 (0.4)

EBITDA 216 245 (11.8) 222 (2.6)


Net profit 150 213 (29.4) 163 (7.9)

Source: Bloomberg


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UltraTech Cement Ltd. (20/10/2011)


EBITDA 684 438 56.3 1,227 (44.3)EBITDA margin (%) 17 14 - 28 -

Net profit 371 116 220.7 683 (45.7)

Source: Bloomberg

Yes Bank Ltd. (20/10/2011)

Particulars (` cr) 2QFY12E 2QFY11 yoy (%) 1QFY12 qoq (%)Net profit 217 176 23 216 0.3

Source: Bloomberg

Asian Paints Ltd. Consolidated (21/10/2011)

Particulars (` cr) 2QFY12E 2QFY11 yoy (%) 1QFY12 qoq (%)Net sales 2,262 1,811 24.9 2,260 0.1

EBITDA 374 331 12.9 392 (4.6)


Net profit 248 215 15.4 264 (6.0)

Source: Bloomberg

Federal Bank Ltd. (21/10/2011)

Particulars (` cr) 2QFY12E 2QFY11 yoy (%) 1QFY12 qoq (%)Net profit 162 140 15.2 146 10.6

Source: Bloomberg

IDBI Bank Ltd. (21/10/2011)

Particulars (` cr) 2QFY12E 2QFY11 yoy (%) 1QFY12 qoq (%)Net profit 414 429 (3.5) 335 23.5

Source: Bloomberg

JSW Steel Ltd. Consolidated (21/10/2011)


EBITDA 1,008 1,023 (1.4) 1,435 (29.7)


Net profit 196 373 (47.4) 485 (59.5)

Source: Bloomberg

Larsen & Toubro Ltd. (21/10/2011)


EBITDA 1,169 1,006 16.3 1,126 3.8


Net profit 705 765 (7.9) 746 (5.6)

Source: Bloomberg


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United Phosphorus Ltd. Consolidated (21/10/2011)


EBITDA 311 233 33.5 345 (10.0)EBITDA margin (%) 19 19 - 19 -

Net profit 121 115 5.9 184 (34.1)

Source: Bloomberg

Grasim Ltd - Consolidated (22/10/2011)


EBITDA 885 786 12.7 1,640 (46.0)


Net profit 475 323 47.0 752 (36.7)

Source: Bloomberg

Axis Bank Ltd - (22/10/2011)

Particulars (` cr) 2QFY12E 2QFY11 yoy (%) 1QFY12 qoq (%)Net profit 921 735 25.3 942 (2.2)

Source: Bloomberg

Power Grid Corporation Ltd -(22/10/2011)

Particulars (` cr) 2QFY12E 2QFY11 yoy (%) 1QFY12 qoq (%)Net sales 2,340 2,127 10.0 2,202 6.2EBITDA 1,959 1,786 9.7 1,845 6.1


Net profit 723 651 11.0 705 2.5

Source: Bloomberg

Suzlon Energy Ltd - Consolidated (22/10/2011)


EBITDA 410 136 201.4 237 73.1


Net profit 15 (369) (104.1) 60 (75.0)

Source: Bloomberg

Gail -(24/10/2011)


EBITDA 1,646 1,457 13.0 1,577 4.3


Net profit 1,035 924 12.1 985 5.1

Source: Bloomberg


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ITC Ltd -(24/10/2011)


EBITDA 2,135 1,875 13.9 1,976 8.0EBITDA margin (%) 36 37 - 34 -

Net profit 1,475 1,247 18.3 1,333 10.7

Source: Bloomberg

Sterlite Industries Ltd - Consolidated (24/10/2011)


EBITDA 2,701 1,529 76.7 2,758 (2.1)


Net profit 1,541 1,008 52.8 1,640 (6.0)

Source: Bloomberg

Union Bank Ltd - (24/10/2011)

Particulars (` cr) 2QFY12E 2QFY11 yoy (%) 1QFY12 qoq (%)Net profit 550 303 81.3 464 18.4

Source: Bloomberg

Economic and Political News

Mineral output down 6% in August Government approves building four expressways at a cost of `16,680cr NRIs can hold accounts in any currency now: RBI Prime Minister likely to review coal supply situation in November Trade between India, Brazil and South Africa set to grow to US$25bn by 2015 Corporate News

NDS Group to invest US$440mn in India in five years Hero MotoCorp aims exports of 10 lakh units in 5-6 years SAIL not to issue fresh equity but government will sell 5% stake in the firm CAG seeks Power Ministrys response on Reliance Power's surplus coal use Abbott to split itself into two publicly traded companies one in diversified

medical products and the other in research-based pharmaceuticalsSource: Economic Times, Business Standard, Business Line, Financial Express, Mint

Results Calendar

20/10/2011Bajaj Auto, UltraTech Cement, Exide Industries, IDBI Bank, Yes Bank, Thermax, D B Corp, Hexaware, FAG Bearings, KPITCummins, Indoco Remedies

21/10/2011Larsen & Toubro, Idea Cellular, Asian Paints, Godrej Consumer, JSW Steel , United Phosphorus, Federal Bank, Indiabulls Fin.,Hind. Const., GIPCL, NIIT, PVR

22/10/2011Axis Bank, Power Grid Corpn, Suzlon Energy, Syndicate Bank, Jagran Prakashan, Bank of Maharashtra, Blue Star, Sarda Energy,

Siyaram Silk Mills24/10/2011 ITC, GAIL, Sterlite Inds, Titan Inds., Union Bank, Sadbhav Engg., Jyoti Structures

25/10/2011 NTPC, Kotak Mah. Bank, Dr Reddy's, Sesa Goa, KEC International


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

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Market Outlook 20th October 2011

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Transcript of Market Outlook 20th October 2011