Market Outlook 17th May 2012

Market Outlook
May 17, 2012
Dealers Diary
The domestic markets are expected to open in green tracking positive opening in
Asian markets. Asian markets fell sharply yesterday, as news that Greece will hold
a second election in June increased uncertainty over the future of the euro region.
Domestic Indices
U.S markets again declined yesterday as worries prevailed about political situation
in Greece, which is headed for a new round of elections after lawmakers failed to
form a coalition government. Investors fear that a Greek exit from the eurozone, a
strong position against austerity measures and a disorderly debt default could lead
to fatal consequences and make sovereign debt problems worse. Meanwhile,
upbeat U.S. economic data helped to limit the downside for the markets as a
report showed that industrial production unexpectedly increased by 1.1% in April.
Meanwhile, Indian markets tumbled on Wednesday weighed down by capital
outflow worries after the rupee tumbled to hit a record low against the dollar,
succumbing to growing risk aversion due to the euro zone crisis and amid concerns
about India's widening current account and fiscal deficits. Investors today will watch
out for jobless claims data of the U.S. for the last week to be released today.
Chg (%)
(Pts)
(Close)
BSE Sensex
(1.8) (298.2) 16,030
Nifty
(1.7)
(84.6)
4,858
MID CAP
(0.8)
(46.4)
5,879
SMALL CAP
(1.1)
(70.3)
6,265
BSE HC
(0.7)
(43.3)
6,646
BSE PSU
(1.5)
(99.9)
6,577
BANKEX
(1.7) (177.6) 10,567
AUTO
(2.6) (252.6)
9,489
METAL
(2.7) (274.9)
9,998
OIL & GAS
(0.5)
(36.0)
7,389
BSE IT
(1.4)
(77.3)
5,513
(Pts)
(Close)
Global Indices
Chg (%)
Dow Jones
(0.3)
(33.5) 12,599
NASDAQ
(0.7)
(19.7)
2,874
Markets Today
FTSE
(0.6)
(32.4)
5,405
The trend deciding level for the day is 16,046 / 4,859 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 16,117 16,204 / 4,881 4,904 levels. However, if NIFTY trades below
16,046 / 4,859 levels for the first half-an-hour of trade then it may correct up to
15,959 15,888 / 4,836 4,814 levels.
Nikkei
(1.1)
(99.6)
8,801
Hang Seng
(3.2) (634.5) 19,260
Straits Times
(1.4)
(40.0)
2,836
Shanghai Com
(1.2)
(28.7)
2,346
Indices
S2
S1
PIVOT
R1
R2
Indian ADRs
Chg (%)
(Pts)
(Close)
SENSEX
15,888
15,959
16,046
16,117
16,204
INFY
(1.5)
(0.7)
$43.4
NIFTY
4,814
4,836
4,859
4,881
4,904
WIT
(3.2)
(0.3)
$8.8
IBN
(2.3)
(0.7)
$28.9
HDB
(3.0)
(0.9)
$29.5
News Analysis
Impact of INR depreciation against USD for Metals/IT companies

4QFY2012 Result Reviews Blue Star, JK Lakshmi Cement
4QFY2012 Result Previews Bajaj Auto, Mahindra Sataym
Refer detailed news analysis on the following page
Purch
Sales
Net
FII
1,834
1,970
550
358
1,806
1,056
113
74
315
43,776
Volumes (` cr)
192
(229)
(6,329)
BSE
1,847
NSE
10,550
Sales
Net
Open Interest
Index Futures
1,623
2,379
(756)
11,862
Stock Futures
1,886
1,794
92
21,050
Gainers / Losers
Gainers
Losers
Price (`)
chg (%)
22
7.8
Company
Tata Motors
Price (`)
chg (%)
269
(7.3)
80
5.6
Aditya Birla Nuvo
756
(6.4)
539
4.1
Shriram Trans
480
(5.4)
BPCL
752
3.3
Sintex Industries
53
(5.3)
TATAGLOBAL
108
2.9
JSW Steel
619
(5.2)
www.angelbroking.com
365
(136)
Purch
Godrej Cons
920
YTD
` cr
Jain Irrigation
Advances
MTD
FII Derivatives (May 16, 2012)
Unitech
NSE
Unchanged
` cr
Company
BSE
Declines
Net Inflows (May 15, 2012)
MFs
Advances / Declines
Market Outlook
May 17, 2012
Impact of INR depreciation against USD for metal and IT

companies
Over the past one year, INR has depreciated significantly vis--vis USD.
We analyzed the impact of INR depreciation on our FY2014 estimates and target
price for a few metal and IT companies at various INR-USD rates.
Exhibit 1: INR depreciation over the past one year

55
53
(`)
51
49
47
45
43
Apr-11
Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Apr-12
USD/INR
Source: Company, Angel Research
Metals
Metal companies price their products based on import parity (landed cost of
imported metals) and, hence, INR depreciation against USD benefits domestic
metal companies as they can raise product prices. However, it should be noted
that although domestic prices of steel, aluminium and zinc, among others, mirror
import-parity prices, domestic pricing also depends on demand-supply dynamics,
especially for steel. Hence, we believe in case INR continues to depreciate against
the USD significantly, steel companies may not pass on the full impact of INR
depreciation to their customers.
Exhibit 2: Sensitivity analysis for metal companies

Net sales (` cr)
INRUSD
@50
Tata Steel
Hindustan Zinc
INRUSD
@52
EBITDA (` cr)
INRUSD
@54
144,364 149,311 154,204

14,679
15,136
15,593
EPS (`)
Target Price (`)
INRUSD
@50
INRUSD
@52
INRUSD
@54
INRUSD
@50
INRUSD
@52
INRUSD
@54
INRUSD
@50
INRUSD
@52
INRUSD
@54
19,841
20,554
21,231
63.7
67.7
71.5
516
546
573
7,949
8,191
8,432
17.1
17.6
18.1
142
144
147
Hindalco
89,338
90,442
91,546
9,459
9,715
9,971
19.5
20.3
21.1
120
134
134
Nalco
90,235
93,209
96,182
14,741
15,172
15,725
3.6
3.7
3.8
54
56
59
9,316
9,723
10,129
3,306
3,490
3,674
44.3
45.7
47.2
Sesa Goa*
Source: Company, Angel Research; Note: * Sesa Goa's valuation will reflect the valuation of the merged entity Sesa Sterlite. Hence, target price sensitivity
has not been calculated
Market Outlook
May 17, 2012
Information Technology (IT)

An exports-driven sector like IT faces headwinds on account of a weaker demand
scenario due to slow global growth, but INR depreciation from peak levels
counters this to an extent by improving the bottom line of Indian IT companies.
Every 1% depreciation in INR against USD aids EBITDA margin of IT companies by
30-40bp. The benefits derived from INR depreciation might be used by IT
companies to pass on benefits of the same to the client in pursuit of market share
gains, but in our recent conversation with IT companies most of the managements
indicated that due to highly volatile currency environment, companies are not
passing on any benefits to clients. Rather than passing benefits, companies are
investing gains in sales and marketing to capture market share. Hence, we believe
benefits from INR depreciation will be retained by IT companies and will be
reinvested into the business.
Exhibit 3: Sensitivity analysis for large-cap IT companies

Net sales (` cr)
EBITDA margin (%)
EPS (`)
Target Price (`)
Infosys
INRUSD
@50
43,358
INRUSD
@52
45,093
INRUSD INRUSD INRUSD INRUSD INRUSD INRUSD INRUSD INRUSD INRUSD INRUSD
@54
@50
@52
@54
@50
@52
@54
@50
@52
@54
46,827
31.1
31.9
32.7
178.2
185.6
193.0
2,852
2,970
3,089
TCS
67,683
70,390
73,098
29.1
30.0
30.7
73.2
77.9
82.6
1,318
1,402
1,487
Wipro
47,599
49,038
50,478
20.2
20.9
21.5
29.6
31.5
33.5
444
473
502
HCL Tech
26,269
27,319
28,370
18.1
19.4
20.6
45.6
50.9
56.1
578
645
713
Source: Company, Angel Research
Result Reviews
Blue Star (CMP: `184 / TP: - / Upside: -)
Blue Star announced a disappointed set of numbers for 4QFY2012 results. Net
sales declined by 12.5% yoy to `801cr (`916cr). EBITDA came in at negative `49cr
in 4QFY2012 vs. profit of `103cr in 4QFY2011 and loss of `3cr in 3QFY2012.
The company reported other income of `23cr during the quarter vs. `3cr in
4QFY2011. Consequently, PAT came in at negative `45cr in 4QFY2012 vs. profit
of `57cr in 4QFY2011. Currently, the stock is under review. We will come out with
a detailed report post management interaction.
Y/E
Sales
OPM
PAT
EPS
RoE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
3,250
5.9
112
12.4
23.8 14.8
3.0
8.7
0.5
FY2014E
3,551
5.9
142
15.8
25.3 11.7
2.6
7.9
0.5
JK Lakshmi Cement (CMP: `60 / TP: `79 / Upside: 31.7%)

JK Lakshmi reported its results for 4QFY2012. The company reported a strong
26.3% yoy growth in top-line to `527cr. The OPMs rose by 215bp yoy (flat on
sequential basis) to 21.5% due to strong improvement in realization even as freight
costs and personnel expenses went up by 21% and 23% yoy, respectively. The
bottom-line came in to `30.3cr from `32cr in 4QFY2011, mainly impacted by
higher depreciation of around `63.6cr on account of retrospective change in
method for charging depreciation on captive power plants from straight line to
written down value (`24.4cr for current year and `39.2cr for earlier years). PAT for
the quarter would have been higher by `42.3cr, if the company had not changed
Market Outlook
May 17, 2012
the method of depreciation. At CMP, the stock trades at EV/tonne of US$42

FY2014E capacity. We maintain our Buy recommendation on the stock with a
target price of `79.
Y/E
Sales
OPM
PAT
EPS
RoE
P/E
P/BV
EV/EBITDA
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2013E
1,880
19.0
132
12.2
11.9
4.9
0.6
2.7
0.5
FY2014E
2,201
22.6
178
16.4
14.3
3.6
0.5
3.9
0.9
Result Previews
Bajaj Auto
Bajaj Auto is scheduled to announce its 4QFY2012 results. We expect the
companys top line to grow by healthy 17% yoy to `4,720cr, led by 7.3% yoy
growth in volumes and an 8.6% yoy increase in net average realization. On the
operating front, the companys EBITDA margin is expected to remain largely flat at
20.6%. Thus, the bottom line is expected to grow by 21% yoy to `816cr. The stock
rating is under review.
Mahindra Satyam
Mahindra Satyam is slated to announce its 4QFY2012 results. We expect the
company to post revenue of US$333mn, up 2.5% qoq, majorly led by volume
growth. In INR terms, revenue is expected to come in at `1,668cr, down 2.9% qoq,
impacted negatively by INR appreciation against USD. EBITDA margin is expected
to shrink by 22bp qoq to 16.0%. PAT is expected to come in at `229cr. We
maintain our Buy rating on the stock with a target price of `89.
Quarterly Bloomberg Brokers Consensus Estimate

Bajaj Auto Ltd - (17/05/2012)
Particulars (` cr)
Net sales
4Q FY12E
4Q FY11
y-o-y (%)
3Q FY12
q-o-q (%)
4,797
4,052
18
4,840
(1)
EBITDA
981
862
14
1,061
(8)
EBITDA margin (%)
20.5
21.3
Net profit
784
1,400
21.9
(44)
795
(1)
Coal India - Consolidated (18/05/2012)

Particulars (` cr)
Net sales
EBITDA
EBITDA margin (%)
Net profit
4Q FY12E
4Q FY11
y-o-y (%)
3Q FY12
q-o-q (%)
17,703
12,692
39
15,349
15
4,404
3,380
30
4,547
(3)
24.9
26.6
3,829
2,626
29.6
46
4,038
(5)
State Bank of India - (18/05/2012)

Particulars (` cr)
Net profit
4Q FY12E
4Q FY11
y-o-y (%)
3Q FY12
q-o-q (%)
3,590
21
17160
3,263
10
Market Outlook
May 17, 2012
Tata Steel Ltd - Consolidated (18/05/2012)

Particulars (` cr)
4Q FY12E
4Q FY11
y-o-y (%)
3Q FY12
q-o-q (%)
33,584
33,443
32,964
3,215
4,466
(28)
1,717
87
EBITDA margin (%)
9.6
13.4
Net profit
899
4,176
Net sales
EBITDA
5.2
(78)
(603)
Zee Entertainment Ltd - Consolidated (21/05/2012)

Particulars (` cr)
4Q FY12E
4Q FY11
y-o-y (%)
3Q FY12
q-o-q (%)
Net sales
753
798
(6)
755
(0)
EBITDA
177
227
(22)
216
(18)
EBITDA margin (%)
23.5
28.4
Net profit
126
188
28.6
(33)
Economic and Political News
CBI raids at Yeddyurappa, kins residences

Government taking austerity steps to arrest market slide: FM
Oil prices fall as risk appetite declines
Pharma secondary sales surge 18.2% in April
Corporate News
Coal India signs fuel supply pacts with 14 power plants

Gas from KG-D6 drops to about 32mmscmd
Glenmark gets nod from U.S. for migraine tablets
Lupin, Aurobindo get U.S. nod for HIV drug
Piramal Healthcare acquires US Analytics Co for USD635mn
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
139
(9)
Market Outlook
May 17, 2012
Result Calendar
Date
Company
May 17, 2012
Bajaj Auto, Mahindra Satyam
May 18, 2012
Coal India, St Bk of India, Tata Steel, HT Media, Siyaram Silk Mills
May 19, 2012
Reliance Capital, Force Motors
May 20, 2012
May 21, 2012
Adani Enterp., Nalco, Zee Entertainment, Tata Comm
May 22, 2012
Tata Power Co., Power Fin.Corpn., Godawari Ispat
May 23, 2012
Rural Elec.Corp., Tech Mahindra, Tata Global, LMW, Jyothy Laboratories
May 24, 2012
Reliance Power, GSPL, TVS Motor, Madras Cements, Hitachi
May 25, 2012
NHPC, BPCL, Sun TV Network, Crompton Greaves, Suzlon Energy, MOIL
May 26, 2012
Sarda Energy, TVS Srichakra
May 27, 2012
May 28, 2012
May 30, 2012
NMDC, Motherson Sumi, Britannia, Bajaj Electrical, Amara Raja Batteries, Indoco Remedies, Subros
ONGC, Tata Motors, Sun Pharma, Power Grid Corpn, SAIL, HPCL, GMR Infra., Aurobindo Pharma, Nagarjuna
Const., PVR
GAIL, M&M, Colgate, Tata Chemicals, BGR Energy , PTC India
May 31, 2012
June 01, 2012
Mphasis
May 29, 2012
Source: Bloomberg, Angel Research
Global economic events release calendar

Date
Country
May 17, 2012
US
May 22, 2012
Euro Zone
Event Description
UK
Initial Jobless claims

Euro-Zone Consumer
Confidence
CPI (YoY)
Unit
Period
Bloomberg Data
Last Reported
Estimated
Thousands
05-May-12
367.00
365.00
Value
Apr-12
(19.90)
(20.10)
% Change
Mar-12
3.50
--
US
Existing home sales
Millions
Mar-12
4.48
4.60
May 23, 2012
US
New home sales
Thousands
Mar-12
328.00
335.00
May 24, 2012
Germany
GDP nsa (YoY)
% Change
Mar-12
1.70
1.70
Germany
PMI Services
Value
Apr-12
52.20
52.00
Germany
PMI Manufacturing
Value
Apr-12
46.20
47.00
UK
GDP (YoY)
Mar-12
--
--
May 29, 2012
US
Consumer Confidence
Apr-12
69.20
70.00
May 31, 2012
Germany
Unemployment change (000's)
% Change
S.A./
1985=100
Thousands
Apr-12
19.00
--
US
GDP Qoq (Annualised)
% Change
Mar-12
2.20
1.80
India
Qtrly GDP YoY%
% Change
6.10
--
US
Change in Nonfarm payrolls
Thousands
Apr-12
115.00
150.00
US
Unnemployment rate
Apr-12
8.10
8.10
China
PMI Manufacturing
Value
Apr-12
53.30
--
India
Imports YoY%
% Change
Mar-12
24.28
--
India
Exports YoY%
% Change
Mar-12
(5.71)
--
UK
PMI Manufacturing
Euro Zone
Euro-Zone GDP s.a. (QoQ)
Euro Zone
ECB announces interest rates
June 01, 2012
June 06, 2012
Source: Bloomberg, Angel Research
Value
Apr-12
50.50
--
% Change
Mar-12
--
--
May-12
1.00
--
Market Strategy
May 17, 2012
Macro watch
Exhibit1: QuarterlyGDPtrends
(%)
(%)
9.8
10.0
Exhibit2: IIPtrends
12.0
9.4
9.0
8.0
7.5
8.3
7.8
7.6
7.4
8.0
7.7
6.9
5.8
5.3
6.0
7.0
6.0
4.0
6.1
5.9
6.2
3.7
4.1
3.4
2.7
2.5
1.1
2.0
(6.0)
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
3QFY12
2QFY12
1QFY12
4QFY11
3QFY11
2QFY11
1QFY11
4QFY10
3QFY10
2QFY10
1QFY10
4QFY09
3QFY09
Source:CSO,AngelResearch
(4.0)
Jun-11
(2.0)
5.0
May-11
Apr-11
6.0
9.5
10.0
8.5
(3.5)
(5.0)
Source:MOSPI,AngelResearch
Exhibit3: MonthlyWPIinflationtrends
Exhibit4: ManufacturingandservicesPMI
(%)
9.6
9.5
9.4
9.8
10.0
9.9
7.7
8.0
Services PMI
58.0
9.5
7.4
6.9
7.2
6.9
56.0
Source:MOSPI,AngelResearch
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
Apr-11
Apr-12
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
48.0
Sep-11
0.0
Aug-11
50.0
Jul-11
2.0
Jun-11
52.0
May-11
4.0
Jun-11
54.0
6.0
May-11
10.0
Mfg. PMI
60.0
12.0
Source:Market,AngelResearch;Note:Levelabove50indicatesexpansion
Exhibit5: Exportsandimportsgrowthtrends
(%)
Exports yoy growth
Exhibit6: Keypolicyrates
Imports yoy growth
Repo rate
(%)
9.00
90
75
Reverse Repo rate
CRR
8.00
8.00
60
7.00
45
30
6.00
4.75
5.00
Source:Bloomberg,AngelResearch
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
Jun-11
May-11
Apr-11
4.00
Source:RBI,AngelResearch
Mar-12
Feb-12
Jan-12
Dec-11
Nov-11
Oct-11
Sep-11
Aug-11
Jul-11
Jun-11
May-11
Apr-11
Apr-12
15
(15)
7.00
Market Outlook
May 17, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
OPM(%)
EPS ( )
( )
Price ( )
( cr )
FY13E
FY14E
FY13E
FY14E
FY13E
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
FY14E
Agri / Agri Chemical

Rallis
Neutral
124
2,417
1,432
1,647
14.7
14.7
7.0
8.0
17.8
15.5
3.7
3.2
22.8
22.3
1.7
1.5
United Phosphorus
Buy
117
183
5,382
8,191
8,764
16.5
16.5
17.1
18.3
6.8
6.4
1.1
1.0
17.5
16.2
0.8
0.7
Amara Raja Batteries
Buy
279
345
2,387
2,691
3,032
15.6
15.5
29.4
32.8
9.5
8.5
2.3
1.8
26.5
23.6
0.8
0.7
Apollo Tyres
Buy
83
100
4,188
13,699
15,184
10.5
10.2
12.1
13.3
6.9
6.2
1.3
1.1
19.7
18.4
0.5
0.4
Ashok Leyland
Buy
25
33
6,758
14,798
16,687
9.6
9.6
2.4
3.0
10.5
8.5
2.1
1.8
14.8
16.5
0.5
0.5
Automotive Axle
Accumulate
487
514
736
1,211
1,387
12.1
11.7
50.3
57.1
9.7
8.5
2.4
2.0
27.8
25.7
0.7
0.6
Bajaj Auto
Accumulate
1,617
1,811
46,776
21,966
24,774
19.8
19.0
111.7
120.7
14.5
13.4
5.6
4.5
43.1
37.1
1.7
1.4
Bharat Forge
Buy
315
372
7,328
7,173
7,998
16.3
16.5
22.3
26.6
14.1
11.9
2.7
2.3
21.0
21.0
1.1
0.9
Bosch India
Accumulate
8,879
9,429
27,878
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
94
164
321
5,067
5,631
8.0
7.6
39.4
41.0
2.4
2.3
0.4
0.4
18.8
16.5
0.3
0.3
Exide Industries
Buy
120
146
10,200
5,787
6,595
15.5
17.0
7.1
9.0
16.9
13.4
3.0
2.5
18.6
20.3
1.4
1.2
FAG Bearings
Neutral
1,519
2,525
1,531
1,748
18.8
18.5
118.0
132.8
12.9
11.4
2.8
2.3
24.0
21.9
1.4
1.1
Hero Motocorp
Buy
1,882
2,280
37,574
26,106
29,296
15.0
15.2
140.3
148.1
13.4
12.7
6.3
4.9
54.8
43.3
1.1
0.9
JK Tyre
Buy
80
113
327
8,058
9,025
5.4
5.5
24.8
32.2
3.2
2.5
0.4
0.3
11.4
13.2
0.3
0.3
Auto & Auto Ancillary
Mahindra and Mahindra Buy
657
802
40,317
35,095
40,213
10.7
10.5
44.6
48.7
14.7
13.5
2.6
2.3
18.8
18.1
0.8
0.7
Maruti
Buy
1,192
1,510
34,450
42,683
48,736
7.1
7.5
86.6
100.6
13.8
11.9
2.0
1.7
15.3
15.5
0.6
0.5
Motherson Sumi
Buy
165
216
6,399
11,167
12,516
9.5
10.0
11.3
14.4
14.6
11.5
3.2
2.6
23.3
24.7
0.7
0.6
Subros
Neutral
31
184
1,225
1,393
8.5
8.2
4.2
5.0
7.3
6.2
0.8
0.7
10.3
11.8
0.4
0.3
Tata Motors
Buy
269
328
72,403 191,183 213,150
12.6
12.6
38.7
42.9
7.0
6.3
2.4
1.9
39.8
33.9
0.5
0.4
TVS Motor
Buy
34
55
1,603
7,982
8,816
6.4
6.3
5.0
5.6
6.7
6.1
1.2
1.0
18.9
18.2
0.2
0.2
ABB*
Sell
699
498
14,811
8,760
10,023
6.4
6.4
18.2
20.7
38.4
33.7
5.2
4.6
14.4
14.6
1.7
1.4
BGR Energy
Neutral
288
2,080
4,170
5,396
11.5
10.4
27.2
30.4
10.6
9.5
1.7
1.6
17.3
17.4
1.1
1.0
BHEL
Neutral
209
51,094
46,344
46,916
18.3
18.6
23.5
24.1
8.9
8.7
1.8
1.5
21.3
18.9
1.0
0.9
Blue Star
Buy
184
221
1,657
3,250
3,551
5.9
5.9
12.4
15.8
14.8
11.7
3.0
2.6
21.2
23.8
0.6
0.5
Crompton Greaves
Buy
111
164
7,092
12,936
14,101
9.6
10.0
10.9
11.7
10.2
9.4
1.8
1.5
18.4
17.3
0.6
0.5
Jyoti Structures
Buy
38
67
312
2,622
2,801
10.6
11.0
10.9
13.4
3.5
2.8
0.4
0.4
12.7
13.9
0.3
0.3
KEC International
Buy
51
73
1,306
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
1,526
2,609
1,719
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
425
5,067
5,514
5,559
8.3
8.0
29.7
28.4
14.3
15.0
2.7
2.4
20.2
16.9
0.8
0.7
Capital Goods
Market Outlook
May 17, 2012
Stock Watch
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
Cement
ACC
Neutral
1,172
22,000
11,018
12,663
19.9
21.2
70.7
81.2
16.6
14.4
2.9
2.6
18.0
19.0
1.7
1.4
Ambuja Cements
Neutral
143
21,983
10,035
11,504
23.5
23.8
10.1
10.6
14.1
13.6
2.8
2.5
18.5
19.4
1.8
1.5
India Cements
Neutral
78
2,396
4,423
4,906
18.2
18.8
9.9
12.7
7.9
6.2
0.7
0.6
8.6
10.5
0.8
0.7
J K Lakshmi Cements
Buy
60
79
740
1,880
2,201
19.0
22.6
12.2
16.4
5.0
3.7
0.6
0.5
11.9
14.3
0.6
0.9
Madras Cements
Neutral
144
3,432
3,434
3,777
25.5
26.1
14.1
18.1
10.2
8.0
1.5
1.3
15.2
16.9
1.6
1.4
Shree Cements
Neutral
2,632
9,168
5,552
6,193
25.7
26.0
130.3
182.0
20.2
14.5
4.2
3.6
19.1
22.3
1.3
1.0
UltraTech Cement
Neutral
1,416
38,802
20,116
22,655
21.3
22.5
82.1
97.5
17.3
14.5
2.7
2.4
16.8
17.4
1.9
1.8
199
302
1,047
2,014
2,294
22.4
22.4
28.4
30.8
7.0
6.5
0.9
0.8
14.1
13.3
2.3
2.6
Construction
Ashoka Buildcon
Buy
Consolidated Co
Neutral
15
271
2,526
2,792
5.7
6.6
1.8
2.8
8.0
5.2
0.4
0.4
5.6
8.2
0.3
0.3
Hind. Const.
Neutral
19
1,128
4,239
4,522
11.1
11.8
(1.8)
(0.8)
(10.4)
(23.8)
1.1
1.2
(9.5)
(4.7)
1.3
1.2
IRB Infra
Buy
116
166
3,839
3,821
4,582
42.3
40.2
15.0
16.9
7.7
6.8
1.2
1.0
16.1
15.8
2.6
2.4
ITNL
Buy
166
265
3,218
6,619
7,925
23.8
23.3
22.0
26.7
7.5
6.2
1.1
0.9
14.9
15.9
2.2
2.1
IVRCL Infra
Buy
47
79
1,252
5,758
6,860
9.2
9.2
4.7
6.0
10.0
7.8
0.6
0.6
6.0
7.3
0.7
0.6
Jaiprakash Asso.
Buy
61
104
12,876
16,017
18,359
24.4
23.5
4.2
5.0
14.4
12.1
1.2
1.1
8.8
9.7
2.1
1.9
Larsen & Toubro
Buy
1,206
1,553
73,834
59,559
69,089
12.1
11.5
70.8
76.5
17.0
15.8
2.6
2.2
16.1
15.3
1.4
1.2
Madhucon Proj
Buy
46
84
337
2,503
2,903
10.7
10.7
5.8
6.6
7.9
7.0
0.5
0.5
6.6
7.0
0.7
0.6
Nagarjuna Const.
Buy
33
76
847
5,790
7,022
9.2
9.5
3.5
5.4
9.5
6.1
0.4
0.3
3.7
5.6
0.8
0.8
Patel Engg.
Neutral
88
612
3,609
3,836
13.1
13.1
14.0
14.6
6.3
6.0
0.4
0.4
6.3
6.1
1.0
1.1
Punj Lloyd
Neutral
45
1,481
10,592
12,193
8.4
8.4
2.9
4.6
15.4
9.8
0.5
0.5
3.9
3.1
0.6
0.6
Sadbhav Engg.
Buy
129
199
1,938
2,989
3,315
10.6
10.6
10.2
11.3
12.7
11.4
2.0
1.7
17.6
16.3
0.8
0.8
Simplex Infra
Buy
211
316
1,044
6,732
7,902
9.3
9.6
27.2
35.1
7.8
6.0
0.8
0.7
11.0
12.6
0.5
0.4
Allahabad Bank
Accumulate
145
166
7,268
7,392
8,542
3.1
3.1
38.3
42.1
3.8
3.5
0.7
0.6
18.4
17.6
Andhra Bank
Neutral
105
5,898
5,151
5,843
3.2
3.1
22.4
25.7
4.7
4.1
0.7
0.6
15.8
16.0
Axis Bank
Buy
971
1,587
40,192
16,157
19,557
3.2
3.2
116.4
139.1
8.4
7.0
1.5
1.3
20.0
20.3
Bank of Baroda
Buy
641
925
25,090
15,993
18,918
2.6
2.6
127.3
149.9
5.0
4.3
0.8
0.7
17.8
18.2
Bank of India
Buy
307
411
17,609
13,558
15,551
2.5
2.4
61.6
70.8
5.0
4.3
0.8
0.7
16.8
16.9
Bank of Maharashtra
Buy
47
55
2,771
3,580
4,050
3.2
3.2
11.5
13.1
4.1
3.6
0.7
0.6
17.4
17.2
Canara Bank
Buy
395
522
17,481
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
5,506
6,838
7,912
2.3
2.4
13.8
20.3
5.4
3.7
0.8
0.7
10.9
14.4
Financials
Market Outlook
May 17, 2012
Stock Watch
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
Financials
Corporation Bank
Buy
405
486
5,994
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
Buy
83
111
2,918
3,149
3,522
2.8
2.8
23.3
26.1
3.6
3.2
0.6
0.5
17.7
17.0
Federal Bank
Neutral
409
6,988
2,743
3,131
3.4
3.3
49.7
57.4
8.2
7.1
1.1
1.0
14.1
14.6
HDFC
Accumulate
621
670
91,773
7,393
8,844
3.5
3.4
31.7
37.9
19.6
16.4
3.9
3.5
34.7
31.9
HDFC Bank
Accumulate
495
567
116,270
21,831
27,477
4.3
4.3
28.3
35.5
17.5
14.0
3.4
2.8
20.8
22.1
ICICI Bank
Buy
794
1,201
91,266
22,209
26,512
2.8
2.8
67.9
81.1
11.7
9.8
1.4
1.3
14.7
16.0
IDBI Bank
Buy
Indian Bank
Accumulate
IOB
Buy
J & K Bank
89
117
11,422
8,004
9,589
1.9
2.0
19.9
23.9
4.5
3.7
0.6
0.5
13.8
14.9
178
197
7,652
6,312
7,119
3.4
3.3
41.1
43.7
4.3
4.1
0.7
0.7
18.2
16.9
78
96
6,241
7,354
8,283
2.5
2.4
16.3
21.7
4.8
3.6
0.5
0.5
11.5
13.9
Accumulate
857
960
4,157
2,420
2,792
3.5
3.6
178.0
195.8
4.8
4.4
0.9
0.8
19.5
18.6
LIC Housing Finance
Buy
243
286
12,268
2,108
2,607
2.6
2.6
24.5
30.6
9.9
7.9
1.9
1.6
20.1
21.4
Oriental Bank
Buy
214
274
6,250
6,431
7,315
2.7
2.6
54.4
63.8
3.9
3.4
0.5
0.5
13.6
14.3
Punjab Natl.Bank
Buy
711
1,066
24,100
19,893
23,653
3.1
3.2
153.4
175.2
4.6
4.1
0.8
0.7
18.3
18.1
South Ind.Bank
Neutral
22
2,449
1,399
1,596
2.6
2.5
3.5
3.8
6.2
5.7
1.1
1.0
18.7
17.5
St Bk of India
Buy
1,829
2,511
122,748
69,568
81,445
3.7
3.7
220.9
269.8
8.3
6.8
1.4
1.1
18.9
19.1
Syndicate Bank
Buy
88
131
5,276
7,133
8,255
3.0
3.0
25.9
30.0
3.4
2.9
0.5
0.5
16.9
17.1
UCO Bank
Neutral
66
4,117
5,623
6,380
2.4
2.4
16.9
17.9
3.9
3.7
0.7
0.6
16.5
15.4
Union Bank
Buy
195
276
10,209
10,215
11,854
2.9
2.8
42.7
50.3
4.6
3.9
0.8
0.6
17.0
17.5
United Bank
Buy
56
78
2,004
3,551
4,128
2.7
2.8
18.8
22.6
3.0
2.5
0.5
0.4
15.5
16.5
Vijaya Bank
Neutral
53
2,611
2,668
3,001
2.2
2.2
10.6
12.2
5.0
4.3
0.7
0.6
13.3
13.8
Yes Bank
Buy
305
470
10,782
3,209
4,144
2.7
2.8
33.9
41.5
9.0
7.3
1.9
1.6
23.1
23.3
3,753
35,997
11,423
13,309
16.3
16.3
125.3
148.4
30.0
25.3
10.2
8.0
38.0
35.4
3.1
2.6
524
650
6,262
5,906
6,856
6.9
7.0
22.3
28.3
23.5
18.5
9.6
7.1
45.2
44.1
1.0
0.9
1,220
16,587
3,007
3,417
21.1
22.1
37.7
42.6
32.3
28.7
38.5
31.1
129.4
120.1
5.4
4.8
FMCG
Asian Paints
Neutral
Britannia
Buy
Colgate
Neutral
Dabur India
Neutral
104
18,118
5,878
6,799
16.8
17.0
4.2
4.9
25.1
21.2
9.1
7.4
39.3
42.0
3.1
2.7
GlaxoSmith Con*
Neutral
2,756
11,589
3,124
3,663
17.1
11.6
103.0
123.3
26.8
22.4
8.3
6.6
34.0
32.9
3.4
2.8
Godrej Consumer
Neutral
534
18,170
5,973
7,000
18.4
18.6
22.8
27.2
23.4
19.7
6.4
5.2
31.3
38.4
3.2
2.7
HUL
Neutral
428
92,534
25,350
29,309
14.3
14.4
14.1
16.4
30.3
26.1
22.7
17.7
82.7
76.2
3.5
3.0
ITC
Accumulate
228
252
178,299
28,955
33,595
35.9
35.7
9.2
10.5
24.9
21.7
8.0
6.6
34.8
33.1
5.9
5.0
Market Outlook
May 17, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( cr )
( )
Price ( )
( cr )
FY13E
OPM(%)
FY14E
FY13E
FY14E
EPS ( )
FY13E
PER(x)
P/BV(x)
FY14E
FY13E
FY14E
FY13E
RoE(%)
EV/Sales(x)
FY14E
FY13E
FY14E
FY13E
FY14E
FMCG
Marico
Neutral
171
10,521
4,667
5,427
12.8
12.9
6.6
8.1
25.7
21.0
6.9
5.4
30.0
28.8
2.3
1.9
Nestle*
Neutral
4,568
44,046
8,731
10,539
21.0
21.4
119.3
147.9
38.3
30.9
23.5
16.0
73.0
61.6
5.1
4.1
Tata Global
Buy
108
136
6,669
7,011
7,712
9.7
10.0
6.0
7.1
18.1
15.1
1.7
1.6
8.9
10.2
0.8
0.8
HCL Tech
Buy
485
560
33,576
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
Accumulate
115
128
3,409
1,821
2,105
19.0
18.6
9.8
10.7
11.7
10.8
2.7
2.4
23.7
22.5
1.6
1.3
Infosys
Buy
2,366
2,792
135,886
37,615
42,491
31.1
30.6
158.5
174.5
14.9
13.6
3.4
2.8
22.5
20.8
3.0
2.5
Infotech Enterprises
Accumulate
166
177
1,844
1,758
1,972
17.0
16.6
16.8
18.6
9.8
8.9
1.3
1.2
13.6
13.2
0.7
0.5
KPIT Cummins
Neutral
113
2,007
2,028
2,239
15.0
14.8
9.0
11.4
12.5
9.9
2.3
1.9
19.3
18.7
1.0
0.8
Mahindra Satyam
Buy
69
89
8,155
7,142
8,042
15.4
15.0
7.7
8.3
9.1
8.4
1.3
1.1
13.8
13.0
0.8
0.6
Mindtree
Neutral
607
2,462
2,172
2,450
16.1
15.5
53.9
58.5
11.3
10.4
2.1
1.8
18.9
17.0
0.9
0.8
Mphasis
Accumulate
394
433
8,275
5,904
6,320
18.3
17.9
38.7
41.2
10.2
9.6
1.5
1.3
14.9
13.7
0.9
0.8
NIIT
Buy
40
52
661
1,162
1,304
14.8
15.1
7.1
8.8
5.6
4.6
0.9
0.8
16.7
18.4
0.4
0.3
Persistent
Neutral
358
1,432
1,109
1,224
23.3
22.4
37.2
40.1
9.6
8.9
1.5
1.3
15.4
14.5
1.0
0.8
TCS
Neutral
1,223
239,378
57,189
66,329
29.3
28.7
63.2
70.9
19.4
17.3
5.9
4.8
30.5
27.7
3.9
3.3
Tech Mahindra
Buy
637
750
8,122
6,030
6,511
16.3
15.7
81.1
87.0
7.9
7.3
1.6
1.3
20.1
18.0
1.3
1.1
Wipro
Accumulate
391
430
96,162
41,918
46,879
19.4
19.9
25.1
28.7
15.6
13.7
2.9
2.5
18.6
18.3
1.9
1.6
D B Corp
Buy
197
274
3,611
1,656
1,869
26.0
26.8
14.0
16.1
14.1
12.3
3.2
2.7
24.8
24.1
2.1
1.8
HT Media
Buy
116
170
2,725
2,255
2,555
17.8
18.3
10.0
12.0
11.6
9.6
1.6
1.4
14.7
15.4
0.9
0.8
Jagran Prakashan
Buy
89
137
2,824
1,499
1,642
27.4
28.8
7.6
9.1
11.7
9.8
3.9
3.5
34.6
37.7
1.8
1.7
PVR
Neutral
145
376
625
732
17.4
16.9
12.4
15.8
11.7
9.2
1.9
2.0
8.5
9.9
0.8
0.6
Sun TV Network
Neutral
274
10,798
2,135
2,458
75.2
74.4
20.9
24.0
13.1
11.4
3.1
2.6
26.0
25.1
4.0
3.2
Bhushan Steel
Neutral
435
9,229
9,232
13,557
30.8
31.1
48.0
58.6
9.1
7.4
1.2
1.0
14.5
7.5
3.1
2.2
Coal India
Accumulate
308
351
194,734
65,654
71,756
26.8
27.3
24.0
26.3
12.8
11.7
3.5
2.9
30.4
27.0
2.0
1.7
Electrosteel Castings
Buy
19
27
654
1,984
2,074
10.6
12.0
2.7
3.3
7.0
5.8
0.3
0.1
5.2
6.2
0.4
0.4
Hind. Zinc
Buy
118
139
50,028
13,043
14,223
51.8
52.8
14.8
16.6
8.0
7.2
1.6
1.3
21.2
19.9
2.1
1.5
Hindalco
Neutral
110
21,146
84,652
88,766
9.6
10.5
17.0
18.9
6.5
5.9
0.6
0.6
9.7
9.8
0.5
0.5
JSW Steel
Accumulate
619
663
13,821
39,592
44,910
18.0
17.7
74.7
88.9
8.3
7.0
0.8
0.7
10.7
11.6
0.7
0.7
MOIL
Neutral
258
4,330
979
1,061
45.7
46.8
24.5
26.6
10.5
9.7
1.6
1.5
16.1
15.8
2.3
1.9
Monnet Ispat
Buy
427
593
2,747
3,115
3,748
22.1
25.1
59.1
66.8
7.2
6.4
1.0
0.9
15.6
15.3
1.6
1.2
IT
Media
Metals & Mining
Market Outlook
May 17, 2012
Stock Watch
Company Name
Reco
CMP
Target
Mkt Cap
( )
Price ( )
( cr )
Sales ( cr )
FY13E
OPM(%)
FY14E
FY13E
FY14E
EPS ( )
FY13E
PER(x)
P/BV(x)
RoE(%)
FY14E
FY13E
FY14E
FY13E
FY14E
FY13E
EV/Sales(x)
FY14E
FY13E
FY14E
Metals & Mining

Nalco
Reduce
NMDC
Accumulate
SAIL
Buy
Sesa Goa
Accumulate
Sterlite Inds
Tata Steel
57
51
14,639
8,276
8,578
12.7
16.4
2.5
3.5
22.4
16.2
1.2
1.2
5.6
7.5
1.3
1.3
166
185
65,973
11,726
12,890
77.8
78.4
18.6
20.6
8.9
8.1
2.1
1.8
26.1
23.8
3.4
3.0
85
102
34,944
52,461
62,935
18.0
18.8
13.2
14.5
6.4
5.8
0.8
0.7
12.4
12.3
1.0
0.9
186
206
16,204
9,067
9,316
35.7
35.5
44.5
44.3
4.2
4.2
0.9
0.8
23.5
19.5
0.4
0.1
Buy
99
123
33,152
45,805
49,029
21.2
23.5
16.5
19.1
6.0
5.2
0.7
0.6
11.5
12.0
0.3
0.2
Buy
402
503
38,999 141,358 142,265
11.1
13.7
45.8
58.9
8.8
6.8
0.8
0.8
10.0
11.7
0.6
0.6
Cairn India
Buy
319
372
60,942
15,513
16,074
74.0
69.7
51.1
48.6
6.3
6.6
1.0
0.9
18.3
14.8
2.8
2.0
GAIL
Buy
310
392
39,335
50,472
55,503
15.3
15.6
35.4
37.0
8.8
8.4
1.5
1.3
18.7
17.0
0.5
0.4
ONGC
Buy
248
319
212,091 148,157 150,563
37.6
39.5
31.0
33.6
8.0
7.4
1.4
1.3
18.8
18.1
1.1
0.9
Reliance Industries
Buy
676
872
221,425 325,734 328,669
10.9
11.7
65.8
70.1
10.3
9.7
1.1
1.0
11.9
11.5
0.7
0.6
Oil & Gas
Pharmaceuticals
Alembic Pharma
Buy
50
91
933
1,624
1,855
14.2
15.6
6.6
9.1
7.5
5.4
1.8
1.4
27.5
29.2
0.8
0.7
Aurobindo Pharma
Buy
106
175
3,093
5,243
5,767
14.6
14.6
13.8
14.7
7.7
7.2
0.9
0.4
11.4
10.9
0.9
0.8
Aventis*
Neutral
2,113
4,867
1,482
1,682
15.5
15.5
95.0
104.0
22.3
20.3
3.9
3.1
18.6
17.0
3.1
2.6
Cadila Healthcare
Buy
781
953
15,986
6,196
7,443
18.5
19.5
43.3
50.8
18.0
15.4
4.6
3.7
25.4
24.8
2.6
2.1
Cipla
Buy
322
379
25,858
7,687
8,804
21.4
21.4
16.5
18.9
19.5
17.0
3.0
2.7
16.7
16.8
3.3
2.9
Dr Reddy's
Neutral
1,665
28,222
10,696
11,662
20.7
21.0
83.7
92.9
19.9
17.9
4.1
3.5
22.4
21.0
2.8
2.5
Dishman Pharma
Buy
44
91
358
1,282
1,538
17.9
17.9
10.1
13.0
4.4
3.4
0.4
0.3
8.5
10.1
1.0
0.9
GSK Pharma*
Neutral
2,035
17,234
2,651
2,993
31.7
31.2
76.0
82.4
26.8
24.7
7.7
6.7
30.8
29.0
5.6
4.8
Indoco Remedies
Buy
59
665
543
685
837
15.2
15.2
55.5
66.5
1.1
0.9
0.2
0.1
16.4
16.9
1.0
0.9
Ipca labs
Buy
347
443
4,361
2,907
3,541
21.5
21.5
32.4
40.6
10.7
8.5
2.7
2.1
27.8
27.7
1.6
1.3
Lupin
Buy
540
646
24,146
8,426
10,082
19.7
20.0
29.7
32.4
18.2
16.7
4.7
3.8
27.0
25.2
2.8
2.2
Orchid Chemicals
Buy
127
270
896
2,143
2,508
21.8
21.8
28.3
38.1
4.5
3.3
0.9
0.7
19.3
23.4
1.3
1.1
Ranbaxy*
Neutral
492
20,751
12,046
11,980
18.0
15.8
35.7
29.8
13.8
16.5
5.2
4.2
43.1
28.1
1.7
1.7
Sun Pharma
Accumulate
583
634
60,013
9,272
11,080
40.3
36.3
26.7
28.8
21.8
20.2
4.4
3.8
22.1
20.8
5.6
4.6
CESC
Buy
263
342
3,290
5,084
5,512
24.2
23.8
45.2
48.5
5.8
5.4
0.6
0.6
11.2
10.9
1.1
1.1
GIPCL
Buy
60
98
908
1,557
1,573
28.7
27.5
10.4
10.2
5.8
5.9
0.6
0.6
10.5
9.6
1.0
0.9
NTPC
Buy
141
201
116,344
73,558
84,843
23.4
23.6
12.6
14.1
11.2
10.0
1.4
1.3
13.3
13.6
2.3
2.1
51
78
1,512
657
875
52.0
56.1
8.4
12.7
6.1
4.0
0.4
0.3
6.3
8.9
3.6
2.7
182
30,834
9,878
12,033
44.7
46.1
9.6
13.4
19.0
13.5
1.2
1.2
6.4
8.7
5.6
4.6
Power
Real Estate
Anant Raj
Buy
DLF
Neutral
Market Outlook
May 17, 2012
Stock Watch
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
62
115
2,610
2,441
3,344
53.0
46.7
21.4
25.4
2.9
2.5
0.2
0.2
8.4
9.1
2.9
2.2
Real Estate
HDIL
Buy
Telecom
Bharti Airtel
Neutral
298
113,223
80,967
88,684
33.1
33.4
17.9
22.0
16.7
13.5
1.9
1.7
11.5
12.5
2.1
1.7
Idea Cellular
Neutral
82
27,137
22,558
25,326
26.4
27.5
3.2
4.7
25.4
17.3
1.9
1.7
7.5
10.0
1.7
1.4
Rcom
Neutral
65
13,499
21,899
23,740
32.7
32.7
4.2
6.7
15.5
9.8
0.3
0.3
2.1
3.2
2.0
1.6
217
245
2,161
3,670
4,384
8.5
8.5
18.3
22.3
11.8
9.7
2.6
2.2
23.9
24.3
0.6
0.5
zOthers
Bajaj Electrical
Accumulate
CRISIL
Neutral
1,069
7,499
982
1,136
34.3
34.3
34.3
40.0
31.1
26.7
14.1
11.3
50.9
46.9
7.2
6.1
Finolex Cables
Buy
35
61
539
2,334
2,687
8.8
9.3
7.6
10.2
4.6
3.5
0.6
0.5
13.7
16.1
0.2
0.1
Graphite India
Buy
93
124
1,825
2,158
2,406
18.1
18.9
12.4
14.0
7.5
6.7
1.0
0.9
14.0
14.3
1.0
0.8
Greenply
Buy
211
298
509
1,800
2,047
11.1
11.6
34.1
49.6
6.2
4.3
1.1
0.9
20.2
23.7
0.5
0.4
Page Industries
Neutral
3,031
3,381
935
1,168
19.6
19.6
99.7
122.2
30.4
24.8
17.6
14.1
64.2
63.1
3.7
2.9
Sintex
Buy
53
129
1,452
5,219
5,912
16.5
16.9
15.8
21.4
3.4
2.5
0.5
0.4
14.7
17.1
0.5
0.4
Siyaram Silk Mills
Buy
246
439
230
1,045
1,173
12.3
12.4
61.5
73.2
4.0
3.4
0.8
0.6
20.2
20.4
0.5
0.4
SpiceJet
Neutral
29
1,383
5,384
6,443
(1.0)
4.1
(3.4)
2.4
(8.4)
12.0
(11.5)
24.3
0.5
0.4
Taj GVK
Buy
58
108
361
300
319
35.8
36.2
7.9
9.1
7.3
6.3
1.0
0.9
13.9
14.4
1.5
1.3
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on May 16, 2012
Market Outlook
May 17, 2012

Market Outlook 17th May 2012

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Market Outlook 17th May 2012

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Market Outlook

May 17, 2012

(1.8) (298.2) 16,030

(1.7) (177.6) 10,567

OIL & GAS

(3.2) (634.5) 19,260

Impact of INR depreciation against USD for Metals/IT companies

Refer detailed news analysis on the following page

Aditya Birla Nuvo

FII Derivatives (May 16, 2012)

Net Inflows (May 15, 2012)

Impact of INR depreciation against USD for metal and IT

Exhibit 1: INR depreciation over the past one year

Source: Company, Angel Research

Exhibit 2: Sensitivity analysis for metal companies

144,364 149,311 154,204

Target Price (`)

Information Technology (IT)

Exhibit 3: Sensitivity analysis for large-cap IT companies

EBITDA margin (%)

Target Price (`)

Source: Company, Angel Research

JK Lakshmi Cement (CMP: `60 / TP: `79 / Upside: 31.7%)

the method of depreciation. At CMP, the stock trades at EV/tonne of US$42

Quarterly Bloomberg Brokers Consensus Estimate

EBITDA margin (%)

Coal India - Consolidated (18/05/2012)

State Bank of India - (18/05/2012)

Tata Steel Ltd - Consolidated (18/05/2012)

EBITDA margin (%)

Zee Entertainment Ltd - Consolidated (21/05/2012)

EBITDA margin (%)

Economic and Political News

CBI raids at Yeddyurappa, kins residences

Coal India signs fuel supply pacts with 14 power plants

May 17, 2012

Bajaj Auto, Mahindra Satyam

May 18, 2012

Coal India, St Bk of India, Tata Steel, HT Media, Siyaram Silk Mills

May 19, 2012

Reliance Capital, Force Motors

May 20, 2012

May 21, 2012

Adani Enterp., Nalco, Zee Entertainment, Tata Comm

May 22, 2012

Tata Power Co., Power Fin.Corpn., Godawari Ispat

May 23, 2012

Rural Elec.Corp., Tech Mahindra, Tata Global, LMW, Jyothy Laboratories

May 24, 2012

Reliance Power, GSPL, TVS Motor, Madras Cements, Hitachi

May 25, 2012

NHPC, BPCL, Sun TV Network, Crompton Greaves, Suzlon Energy, MOIL

May 26, 2012

Sarda Energy, TVS Srichakra

May 27, 2012

May 28, 2012

May 30, 2012

May 31, 2012

June 01, 2012

May 29, 2012

Source: Bloomberg, Angel Research

Global economic events release calendar

May 17, 2012