Market Outlook

August 12, 2013

Dealers Diary
Indian markets are expected to open in the green tracking positive opening trades in the SGX Nifty and most of the Asian markets. The US markets saw moderate weakness on the trading session on Friday. The weakness on Wall Street partly reflected lingering concerns about the outlook for the Federal Reserve's asset purchase program. Meanwhile the European markets climbed for a second consecutive session on Friday. Investor sentiment was again driven by optimism for the recovery of the world's second largest economy, following the release of more positive economic data from China. Indian markets were closed on Friday on account of a holiday. On Thursday, Indian markets ended notably higher helped by firm global cues and expectations that the government and the Reserve Bank of India will announce more measures to boost capital inflows.
Domestic Indices Chg (%) (Pts) (Close)

BSE Sensex Nifty MID CAP SMALL CAP BSE HC BSE PSU BANKEX AUTO METAL OIL & GAS BSE IT
Global Indices

0.7 0.8 1.3 1.3 (0.2) 0.7 0.6 1.4 2.6 (0.2) 0.5
Chg (%)

124 18,789 47 72 68 (19) 37 5,566 5,409 5,234 8,809 5,216

65 11,204 139 10,215 174 (18) 41

(Pts)

6,856 8,345 7,468

(Close)

Markets Today
The trend deciding level for the day is 18,747/ 5,551 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18,872 18,954 / 5,592 5,619 levels. However, if NIFTY trades below 18,747 / 5,551 levels for the first half-an-hour of trade then it may correct up to 18,664 18,539 / 5,525 5,484 levels.
Indices S2 S1 PIVOT R1 R2

Dow Jones NASDAQ FTSE Nikkei Hang Sang Straits Times Shanghai Com
Indian ADR

(0.5) (0.2) 0.8

0.1 0.7 0.2 0.4

(73) 15,426 (9) 54

10 5 7

3,660 6,583
13,615 3,230 2,052

152 21,808

SENSEX NIFTY

18,539 5,484

18,664 5,525

18,747 5,551

18,872 5,592

18,954 5,619

Chg (%) (0.3) 0.2 0.5 (0.0)

(Pts) (0.1) 0.0 0.2 (0.0)

(Close) $49.5 $9.0 $31.5 $31.5

News Analysis

INFY WIT IBN HDB

Advances / Declines

RBI to further tighten liquidity through weekly bond auctions Asian Paints completes acquisition of sleek group Reliance Digital TV to merge its operations with Sun Direct Result Review: Sun Pharm, Cipla, ABB, BHFC, Aurobindo Pharma, Page Industries, IRB Infra, ITNL, TVSL, Goodyear India, BGR, Prakash Industries, Automotive Axles, ITD Cementation, Finolex Cables Result Preview: ONGC, SBI, Tech Mahindra, Marico, Britannia, India Cements, United Bank
Refer detailed news analysis on the following page

BSE

NSE

Advances Declines Unchanged

1,367 879 155

888 412 96

Net Inflows (August 7, 2013)

` cr FII MFs Purch 3,436 838 Sales 3,689 569 Net (253) 269 MTD 976 (370) YTD 66,373 (14,716)
Volumes (` cr)

BSE NSE

1,737 11,048

FII Derivatives (August 8, 2013)

` cr Index Futures Stock Futures Purch 1,656 1,705 Sales 1,263 2,019 Net 392 (313) Open Interest 11,297 26,806

Gainers / Losers
Company Ranbaxy Labs Bharat Forge Hindustan Copper Amara Raja Batt. GMDC Gainers Price (`) chg (%) 359 231 64 241 96 27.5 16.6 12.9 10.6 9.4 Company Cadila Health. Federal Bank Gitanjali Gems Yes Bank JSW Steel Losers Price (`) chg (%) 708 318 59 283 504 (5.1) (5.0) (5.0) (3.5) (3.3)

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Market Outlook
August 12, 2013

RBI to further tighten liquidity through weekly bond auctions

RBI has decided to auction `22,000cr of Government of India Cash Management Bills (to be referred as bonds hereinafter) every Monday to drain further liquidity of the system so as to contain volatility in forex market. The duration of the bonds to be issued will be announced one day prior to the date of the auction. The duration for the bonds to be issued today has been kept at 34/35 days. It would effectively result in liquidity worth `1.1 lakh cr drained out of the system, if the duration of the bonds to be issued every Monday is maintained at around 35 days and the measures continue for five weeks. Even if the measures continue at same pace for more than five weeks, then after adjusting for repayment and reissuance, the liquidity drained out of the system would still be `1.1 lakh cr. Short duration of the bonds provide flexibility to the RBI to withdraw these measures in case the situation improves and hence, the amount of the liquidity eventually drained out of the system can be less than `1.1 lakh crore. Unless RBI increases auction size or the duration, the initial intent of RBI appears to suck out liquidity worth `1.1 lakh crore out of the system. This move comes in the backdrop of a number of other tightening measures taken since July 15, 2013 to tackle exchange rate volatility. These measures include hike in the MSF/bank rate to 300bp above the repo rate, hiking the daily mandated CRR to 99% of banks NDTL, capping the borrowing from repo window to 0.5% of every individual banks NDTL. The RBI has in its 1QFY2014 review of the monetary policy indicated at a calibrated withdrawal of these measures with stability in the forex market. We believe that with these measures likely to continue over the next 1-2 months and hence, we might see transmission of higher-than-anticipated interest rates into broader segments. We believe that the RBI and the government could take further measures to stabilize the currency. Some of the options other than policy rates include hiking import duties for items considered non-essential, further relaxing ECB norms and mulling a NRI bond issue.

Asian Paints completes acquisition of Sleek group

Asian Paints has acquired a 51% stake in the kitchen solutions provider company, Sleek International Private Limited (Sleek) for a consideration of `120cr, infused in two tranches. Asian Paints has initially infused `99.8cr for a 51% stake in the company. As per the companys statement, it would infuse a further sum of `19.7cr as a second tranche by August 10th 2013 for subscribing to equity shares with the existing promoters the Ahuja family infusing proportionate funds. Rajesh T. Ahuja, the current CEO, will continue to be the Managing Director & CEO of Sleek. We believe this acquisition is a good move by Asian Paints as Sleek would complement Asian Paints decorative business and also give it a foothold in the fast growing modern kitchen industry. Asian Paints also intends to enter other lines of Home improvement businesses in the future. We maintain a Neutral rating on Asian paints.

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Market Outlook
August 12, 2013

Reliance Digital TV to merge its operations with Sun Direct

According to media reports, Reliance Digital TV is likely to merge its operations with Sun Direct. RCOM, Reliance Digital TVs parent company is expected to retain 26% stake in the merged entity (valued at `1,500cr) and fully exit the merged entity only after Sun Directs IPO. The merged entity is also expected to take over Reliance Digital TVs debt of `1,500cr. After the deal, management control of the merge entity will go to Sun TV. Reliance DTH has a gross subscriber base of about 4.1mn customers while Sun TV has a gross subscriber base of about 8.5mn. The combined entity would have a subscriber base of about 12.6mn making it the second largest player ahead of Tata Skys gross subscriber base of 11.5mn. However, Dish TV, having gross subscriber base of 15.0mn will continue to be the largest player. We await further clarity on the matter. Meanwhile, we maintain Neutral rating on the stock.

Result Review
Sun Pharma (CMP: `507/ TP: -/ Upside: -)
Sun Pharma, posted results better than expected on sales and net profit. For 1QFY2014, Sun Pharma came in at `3,482cr, registering a growth of 31.0% yoy, V/s expectation of `3,377cr. The growth was driven both by exports and domestic sales. Branded generic sales in India, at `849cr, grew by 44% yoy. Adjusted sales growth of the domestic formulation business grew by 11% yoy. Exports, on other hand grew by 27.0% yoy during the period. US finished dosages sale is US$ 364mn recording a growth of 28% (in US$ terms) over 1QFY2013. International formulation sales is US$ 81mn, and grew by 19% (in US$ terms) over same quarter last year. On the operating front, the gross margins expanded by 381bps, to end the period at 84.4%, inspite of which the OPMs declined by 182bps to end the period at 44.0% V/s expectation of 39.4%. The margins were under pressure on back of the significant rise in the expenses. The employee expenses rose by 43.3% yoy, while other expenditure rose by 62.8% yoy. Thus, a strong rise in sales along with higher other income and lower tax expenditure aided the adjusted net profit come in at `1,241cr V/s expected `961cr, registering a growth 56.0% yoy. However, for the quarter, company reported a loss of `1,276cr, on back of the `2,517cr provided towards, settlement for patent infringement litigation related to generic versions of Protonix. We maintain our neutral on the stock.
Y/E March FY2014E FY2015E Sales OPM (` cr) (%) 13,509 41.0 15,846 41.0 PAT (` cr) EPS ROE (`) (%) P/E P/BV (x) (x) 6.2 5.1 EV/EBITDA (x) 18.0 14.9 EV/Sales (x) 7.4 6.1

3,423 16.5 22.0 30.7 4,122 19.9 22.0 25.5

Cipla (CMP: `411/ TP: `477/ Upside: 16%)

Cipla posted results better than expected during the quarter, both on sales and profitability front. For the quarter, posted a net sales growth of 19.4% to `2,308cr V/s expectation of `2,113cr. The growth was driven by the domestic and exports,

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Market Outlook
August 12, 2013

which posted a growth of 16.7% and 20.6% yoy during the period. Formulation exports posted a growth of 27.6% yoy. The growth in export revenues was primarily due to growth in anti-retroviral, anti-asthma and anti-allergic segments. The gross margins dipped by 328bps , while the OPM (excluding technical knowhow fees) came in line with expectation at 22.2%, down by 410bp from the last corresponding period, mainly on back of the 46.5%yoy rise in the employee cost. The increase in staff cost of `94 cr is due to increase in manpower and annual increments, adjusting for which the rise in the employee cost was 5.6%yoy. However, a significant rise in the other income, aided the 18.7%yoy growth in the net profit to end the period at `485cr V/s expectation of `367.2cr. The other income during the quarter was at `246.3cr V/s 131.8cr in 1QFY2013.We maintain our buy on the stock.
Y/E March FY2014E FY2015E Sales OPM (` cr) (%) 9,274 23.1 10,796 23.1 PAT (` cr) EPS ROE P/E P/BV (`) (%) (x) (x) 3.1 2.7 EV/EBITDA (x) 15.3 12.7 EV/Sales (x) 3.5 2.9

1,685 21.0 17.219.6 1,912 23.9 16.817.2

ABB (CMP: `495/TP: `461/Downside: 7%)

For 2QCY2013, ABB Indias (ABB) top-line and bottom-line performance was below our estimates. Top-line declined by 7.5% yoy to `1,742cr (our estimate of `1,940cr) with clients delaying projects as well as shift in ABBs focus from top-line to operating performance. EBITDA grew by 9% yoy to `88cr, aided by cost control measures and supply chain optimizations. Consequently OPM expanded by 77bp yoy to 5.1%. However, increase in interest cost from `8cr to `26cr, dragged down ABB's bottom-line by 21.9% yoy to `40cr (our estimate of `44cr). We recommend Reduce rating on the stock.
Y/E Dec CY2013E CY2014E Sales OPM (` cr) 8,073 9,052 (%) 5.5 6.9 PAT (` cr) 244 359 EPS (`) 11.5 16.9 ROE (%) 9.3 13.1 P/E (x) 42.9 29.2 P/BV EV/EBITDA (x) 3.9 3.7 (x) 23.0 15.8 EV/Sales (x) 1.3 1.1

BHFC (CMP: `231/ TP: Under Review/ Upside: Under Review)

Bharat Forge (BHFC) reported strong results for 1QFY2014 beating consensus as well as our estimates by a wide margin. The performance was driven by sequential improvement in volumes (up 11.2%) driven by export markets and better-thanexpected EBITDA margins (at 24.8%, up 376bp qoq) on the back of cost reduction initiatives undertaken in the past two quarters. For 1QFY2014, standalone revenues posted a strong sequential growth of 17.3% yoy to `792cr, ahead of our estimates of `727cr, aided by a strong export revenue growth of 27.6%. The export performance was boosted by a strong growth across all the key geographies with Europe and US witnessing an impressive growth of 40% and 15.1% qoq respectively. While volumes posted a growth of 11.2% qoq, net average realization registered a growth of 5.1% qoq. On a yoy basis though, total sales registered a steep decline of 15.5% yoy due to 19.2% decline in volumes. On a yoy basis, domestic and export revenues declined by 10.1% and 20.3% yoy respectively led by weak automotive demand. Non auto revenues

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Market Outlook
August 12, 2013

however, registered a strong growth of 26.6% yoy to 280cr primarily driven by exports. On the operating front, margins recovered sequentially by 376bp (flat yoy) to 24.8%, better than our expectations of 22.2%, on the back of the cost reduction initiatives undertaken in the past two quarters and also due to softening of commodity prices. Net profit stood at `91cr (a growth of 80.9% qoq) against our expectations of `66cr largely due to better-than-expected performance on the operating front. However, on a yoy basis, net profit declined 13.9% following a 15.5% yoy decline in the top-line. The performance improvement was also evident at the wholly owned overseas subsidiaries (wos) with top-line registering a strong growth of 11% yoy despite a weak environment. EBITDA margins improved by a strong 170bp yoy to 8.9% on the back of the continued focus on productivity improvement and cost control measures. Consequently, bottom-line surged to `17cr from `8cr in 1QFY2013. The China JV however, continued its weak performance due to sluggish automotive demand registering a bottom-line loss of `5cr. At the CMP of `231, the stock is trading at 13.3x FY2015 earnings. The stock rating is currently Under Review.
Y/E March FY2014E FY2015E Sales (` cr) 6,198 6,793 OPM (%) 14.6 14.9 PAT (` cr) 338.5 403.0 EPS ROE (`) (%) P/E P/BV (x) (x) 2.1 1.9 EV/EBITDA EV/Sales (x) 6.7 5.8 (x) 0.9 0.8

14.5 13.6 15.9 17.3 14.7 13.3

Aurobindo Pharma (CMP: `161/ TP: `237/ Upside: 47%)

Aurobindo Pharmaceuticals posted better than expected results on the sales and OPM front, while the adj. net profit came in below expectations. For the quarter, the company posted net sales of `1699cr V/s expectations of `1600cr, registering a growth of 41.7% yoy. The growth was driven by the formulation segment, which posted a growth of 68.1% yoy, driven by the USA markets, which posted a yoy growth of 90.3%. Other key markets like EU& ROW along with the ARV in the formulation segment posted sales growth of 52.6% and 36.8% yoy respectively. API segment on the other hand posted a growth of 10.2% yoy during the period. On the operating front, the margins improved by 691bps, to end the period at 17.2%, higher than expected 16.2%. The improvement, in the OPM was on back of the improvement in the gross margins, which expanded by 162bps and operating leverage. This aided the adj. net profit come in at `171cr vs `182cr expected and `79crin 1QFY2013. We maintain our buy on the stock.
Y/E March FY2014E FY2015E Sales OPM (` cr) (%) 6,641 15.9 7,637 15.9 PAT (` cr) EPS ROE (`) (%) P/E P/BV (x) 9.3 7.8 (x) 1.5 1.2 EV/EBITDA (x) 7.1 6.0 EV/Sales (x) 1.1 0.9

504 17.3 19.5 601 20.6 18.9

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Market Outlook
August 12, 2013

Page Industries (CMP: `4,279/ TP: `4,669/ Upside: 9%)

For 1QFY2014, Page Industries (Page) reported a strong set of numbers, which were ahead our estimates at revenue and profit fronts. The company's top-line grew by 39.4% yoy to `304cr, against our estimate of `265cr for the quarter. The revenue growth was driven by healthy volume growth coupled with higher realization. Blended volume growth for the quarter was 17.1% yoy and average realization increased by 18.9% yot to `109/piece of garment. The EBITDA margin for the quarter contracted by 48bp yoy and came in at 20.9% due to higher other expenses, in line with our estimate. On account of robust topline growth, the the company reported a profit of `43cr, 31.6% higher yoy and 19.8% higher than our estimate of `36cr. Given the huge market size, Pages predominant position, strong brand recall and capacity expansion plans for next four years to cater to the increasing demand; we remain positive on the companys growth outlook. At the CMP of `4,279, the stock is trading at a PE of 27.5x FY2015E earning. We maintain our Accumulate recommendation on the stock with a revised target price of `4,669 with a target PE of 30.0x for FY2015E.
Y/E March FY2014E FY2015E Sales OPM (` cr) (%) 1,059 19.5 1,296 19.8 PAT (` cr) EPS ROE (`) (%) P/E P/BV (x) (x) EV/EBITDA (x) 23.6 19.0 EV/Sales (x) 4.6 3.8

139 124.9 56.3 34.2 16.9 174 155.6 52.2 27.5 12.4

IRB (CMP: `71 / TP: `106 / Upside: 50%)

For 1QFY2014, IRB Infrastructure (IRB) reported a healthy set of numbers and was above our expectations. The companys revenue came in above our expectation owing to healthy execution pace from its under-construction projects which led to higher-than-expected bottom-line. IRBs consolidated revenues stood at `1,033cr in 1QFY2014 (against our estimate of `983cr), indicating a growth of 5.4% yoy. This was mainly due to healthy execution pace from its under-construction projects. The E&C segment reported revenue of `778.5cr registering a growth of 3.7% yoy and the BOT segment witnessed a growth of 8.3% yoy to `283.5cr. On the EBITDAM front, IRBs margin increase by 63bp yoy to 44.1% however was slightly lower than our estimate of 44.8%. Strong execution of its under construction BOT projects led to EBITDAM of 30.7% (including other income) for E&C segment. Interest cost came in at `166cr, registering a jump of 7.8% on a yoy basis. At the earnings front, IRB reported a decline of 5.5% yoy to `134cr against our estimate of `111cr owing to better-than-expected revenue performance. IRB is looking at both organic and inorganic options for growth with a threshold of 18% equity IRR and intends to allot 20% of consolidated cash flow post debt repayment towards acquisitions. During the quarter, the company has declared `2/share as an interim dividend. IRB has a robust order book of ~`5,675cr (2.1x FY2013 E&C revenue, excluding O&M orders), which lends revenue visibility. Although a slowdown in order awarding by NHAI in road sector has been witnessed in 1QFY2014, IRB expects ordering activity to improve going ahead. We maintain our Buy view on the stock with a target price of `106.

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Market Outlook
August 12, 2013

Y/E March

Sales (` cr)

OPM (%) 44.4 45.0

PAT (` cr) 618 623

EPS (`) 18.6 18.8

ROE (%) 17.8 16.0

P/E (x) 6.7 6.6

P/BVEV/EBITDA EV/Sales (x) 1.1 1.0 (x) 7.5 7.6 (x) 3.3 3.4

FY2014E 4,152 FY2015E 4,624

ITNL (CMP: `120 / TP: `156/Upside: 30%)

For 1QFY2014, on a consolidated basis, IL&FS Transportation Networks (ITNL) posted a mixed set of numbers with poor performance on the top-line front; however bottom-line was ahead of our estimate mainly due to better-thanexpected operational performance during the quarter. ITNLs consolidated revenue decline by 8.1% yoy to `1,451cr in 1QFY2014, which was below our estimate of `1,675cr. EBITDA margins increase by 1,142bp sequentially to 35.9% (29.5%) in 1QFY2014, against our estimate of 27.4%. This was mainly on account of higher revenue contribution from fee income and increase in BOT toll/annuity revenue due to operation of some BOT toll/annuity projects during the quarter. Interest cost grew by 28.8% yoy to `325cr in 1QFY2014 and was higher than our estimate by 3.1%. On the earnings front, ITNL reported subdued growth of 2.3% yoy to `125cr against our estimate of `106cr mainly on account of better-than-expected operational performance. We continue to maintain Buy rating on the stock with our target price of `156, indicating an upside of 30% from current levels.
Y/E March FY2014E FY2015E Sales (` cr) 7,423 7,970 OPM (%) 27.5 28.7 PAT (` cr) EPS (`) ROE P/E (%) (x) P/BV EV/EBITDA (x) 0.6 0.5 (x) 8.8 8.6 EV/Sales (x) 2.4 2.5

589 30.3 621 31.9

15.0 4.0 14.0 3.8

TVS Motor (CMP: `31/ TP: `36/ Upside: 13%)

TVS Motor Company (TVSL) reported a muted set of results for 1QFY2014, which were broadly in-line with our estimates. The net average realization, however, posted a better-than-expected growth of 2.3% qoq aided by higher share of threewheelers and also due to better realization on the exports front. The top-line posted a decline of 4.8% yoy to `1,760cr on the back of the 4.7% yoy decline in total volumes. The volumes continue to be impacted by the slowdown in twowheeler industry amid rising competition. Three-wheelers however, posted a strong growth of 89.8% yoy driven by impressive exports performance. On the operating front, the EBITDA margin remained stable at 5.6% as the benefits of decline in raw-material prices were offset by increase in employee costs (due to salary hikes) and other expenditure (due to higher marketing spends and increase in power and distribution expenses). Net profit stood at `52cr (a growth of 1.5% yoy) and was aided by a 70.3% increase in other income and 57.8% decline in interest expense. Going ahead, we expect the operating environment to remain challenging for TVSL in FY2014 as well given the weak demand scenario. Nevertheless, we expect the companys volumes (key to improvement in operating performance) to benefit from the new launches/refreshes that are lined up in FY2014 (new scooter, upgraded Scooty and Star City). Further, the higher margin three-wheeler segment which has been recording robust performance on the back of exports is also expected to benefit from the opening up of new permits in Maharashtra and Delhi. Additionally, TVSL has received the boards approval to divest majority stake (holds 94.5% stake) in its

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Market Outlook
August 12, 2013

subsidiary, TVS Energy Ltd, which is expected to enable the company to lower its debt burden and boost its profitability. At `31, TVSL is trading at 5.3x FY2015E earnings. We maintain our Accumulate rating on the stock with a target price of `36.
Y/E March FY2014E FY2015E Sales (` cr) 7,659 8,528 OPM (%) 6.0 6.2 PAT (` cr) 232 282 EPS (`) 4.9 5.9 ROE (%) 17.8 18.9 P/E (x) 6.5 5.3 P/BV EV/EBITDA EV/Sales (x) 1.1 0.9 (x) 2.1 1.3 (x) 0.1 0.1

Goodyear India (CMP: `307, TP: `356, Upside: 16.0%)

For 2QCY2013, Goodyear reported better than expected top-line of `423cr, 5.5% higher on a yoy basis from `401cr in 2QCY2012. EBITDA came in at `40cr as against expectation of `35cr. EBITDA margin expanded by 336bp yoy from 6.2% in 2QCY2012 to 9.6% in 2QCY2013 led by decline in raw material cost as a percentage of net sales. This margin expansion coupled with higher other income led to stupendous growth in net profit by 79.8% yoy to `26cr from `14cr in 2QCY2012. Though a slowdown in auto industry is expected to keep revenue growth restrained, we believe lower international rubber prices would help in maintaining margins going forward. At the current market price, the stock is trading at a PE of 8.0x for CY2014E and P/B of 1.5x for CY2014E. We recommend Buy rating on the stock with a target price of `356, based on a target P/E of 9.0x for CY2014E.
Y/E Dec
CY2013E CY2014E

Sales (` cr)
1,497 1,608

OPM (%)
8.2 8.8

PAT (` cr)
76 89

EPS (`)
33.1 38.4

RoE (%)
20.0 19.9

P/E (x)
9.3 8.0

P/BV (x)
1.7 1.5

EV/EBITDA (x)
3.5 2.6

EV/sales (x)
0.3 0.2

BGR Energy (CMP: `89/TP: NA/ Upside: )

For 1QFY2014, BGR Energy's (BGR) top-line and bottom-line performance was above our estimates. Top-line grew by 34% yoy to `8,213cr, driven by 38% yoy growth in Construction and EPC segment. On the operating front, EBITDA grew by 20% yoy to `106cr (better than our expectation of `90cr) and OPM contracted by 150bp yoy to 12.9%. Consequently, net profit grew by 11% yoy to `37cr, in spite of increase in interest cost from `34cr in 1QFY2013 to `45cr 1QFY2014. We recommend Neutral on the stock.
Y/E March FY2014E FY2015E Sales OPM (` cr) 4,569 (%) 9.7 3,756 11.3 PAT (` cr) 157 174 EPS (`) 21.7 24.1 ROE (%) 22.3 20.3 P/E (x) 4.3 3.9 P/BV EV/EBITDA (x) 0.5 0.5 (x) 4.6 4.7 EV/Sales (x) 0.5 0.5

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Market Outlook
August 12, 2013

Prakash (CMP: `29/ Target Price: Under Review/ Upside: -)

Prakash Industries (Prakash) 1QFY2014 operating profit declined mainly due to lower realizations in our view. Its net sales decreased by 4.7% yoy to `640cr due to lower realizations in our view. Hence, its EBITDA decreased by 9.4% yoy to `89cr and net profit decreased by 28.3% yoy to `43cr. Going forward, we expect Prakashs EBITDA to witness growth beginning FY2015 once the benefits of increased capacities of sponge iron and power are realized. Moreover, PIL is currently trading at inexpensive valuations of 3.0x and 2.8x FY2014E and FY2015E EV/EBITDA, respectively. On P/BV basis, it is trading at 0.2x and 0.2x FY2014E and FY2015E, respectively. Hence, we maintain a Buy rating on the stock while we keep our target price under review.

Y/E March FY2014E FY2015E

Sales (` cr) 2,615 2,776

OPM (%) 12.1 12.0

PAT (` cr) 143 152

EPS (`) 9.8 10.4

ROE (%) 6.5 6.5

P/E (x) 3.0 2.8

P/BV (x) 0.2 0.2

EV/EBITDA (x) 3.3 3.0

EV/Sales (x) 0.4 0.4

Automotive Axles (CMP: `198/ TP: -/ Upside: -)

Automotive Axles (ATXL) reported poor performance for 3QSY2013, which was on the expected lines, given that the medium and heavy commercial vehicle (MHCV) industry continued to witness slowdown in demand. The top-line declined 11.5% yoy (1.3% qoq) to `161cr tracking the 16.3% yoy (11.5% qoq) decline in MHCV industry volumes. The operating margins contracted 127bp yoy to 8.6% as rawmaterial expenditure as a percentage of sales rose 250bp yoy during the quarter. Consequently, operating profit and net profit witnessed a significant decline of 22.9% and 38% yoy to `14cr and `4cr respectively. On a sequential basis though, EBITDA margins improved 140bp led by softening of commodity prices leading to a 17.9% and 46.6% yoy jump in operating profit and net profit respectively. We expect the near term operating environment to remain challenging for the company as the MHCV segment continues to witness significant slowdown. Accordingly we revise our SY2013 revenue and earnings estimates downwards by 16.1% and 35.7% yoy respectively. At `198, the stock is trading at 7.7x SY2014 earnings. We maintain our Neutral rating on the stock.
Y/E September SY2013E SY2014E Sales (` cr) 700 890 OPM PAT (%) (` cr) 8.7 10.7 17 39 EPS (`) 11.1 25.8 ROE (%) 6.2 13.8 P/E P/BV (x) (x) 17.8 7.7 1.1 1.0 EV/EBITDA EV/Sales (x) (x) 5.3 3.4 0.5 0.4

ITD Cementation (CMP: `160/ TP: `232/ Upside: 45%)

ITD Cementation reported mixed set of numbers for 2QCY2013. The revenue of the company for the quarter was flat on yoy basis to `334cr, 6.7% lower than our estimate of `358cr. The company's operating margin contracted by 64bp yoy to 11.7%, against our estimate of 10.2%, mainly because of lower raw material cost as a percentage of net sales. Debt for HY2013 increased substantially to `707cr, leading to an higher interest outgo of `27cr. The tax expense for the quarter was mere `0.04cr. Consequently, the company reported a net profit of `5cr, ahead of our estimate of `3cr.

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Market Outlook
August 12, 2013

However, given the companys strong order book of `3,480 executable over a period of two and a half years, we remain positive on its growth outlook. The stock is currently trading at a PBV of 0.5x. We maintain our Buy recommendation on the stock with a target price of `239 based on the target PBV of 0.6x for CY2014E. We may revise our numbers post management interaction.
Y/E Dec CY2013E CY2014E Sales OPM (` cr) (%) 1,417 11.2 1,545 11.1 PAT (` cr) 22 30 EPS (`) 18.9 25.7 ROE (%) 5.3 6.8 P/E (x) 8.5 6.2 P/BV EV/EBITDA (x) 0.4 0.4 (x) 4.8 4.6 EV/Sales (x) 0.5 0.5

Finolex Cables Ltd. (CMP: `55 /TP: `68/ Upside: 24%)

Finolex Cables Ltd. (FCL) reported mixed set of numbers for 1QFY2014. Top-line reported flat yoy growth of 6.9% to `554cr, as compared to our estimate of `585cr. Electrical cables and communication cables segments grew by 3.9% and 26.0% while copper rods segment registered a decline of 16.2% on yoy basis. Contribution from Electricals cables segment and copper rods segment to total sales declined from 88.1% and 4.6% in 1QFY2013 to 85.7% and 3.6% in 1QFY2014 respectively. Communication cables segment however increased its contribution from 7.3% to 8.6% yoy. EBITDA came higher by 5.2% yoy to `51cr, in-line with our estimate of `52cr. EBITDA margin was down marginally by 15bp on a yoy basis to 9.3%. EBIT margin for Electrical cables segment dip by 117bp and came at 10.9% while communication cables segment reported a rise of 439bp in EBIT margin to 12.2%. Nevertheless Adjusted PAT soared by whooping 35.1% yoy to `34cr aided by other income (higher by 338% yoy) vis--vis our estimate of `28cr. PAT margin too expanded from 4.8% in 1QFY2013 to 6.1% in current quarter. We maintain our Buy recommendation on the stock with target price of `68 based on target PE of 6x for FY2015E earnings.

Result Preview
ONGC (CMP: `273/TP: `330 / Upside: 21%)
ONGC is slated to announce its 1QFY2014 results today. We expect the companys top line to increase by 1.0% yoy to `20,285cr. On the operating front, EBITDA margin is expected to expand marginally by 15bp yoy to 55.6%. However, the bottom line is expected to decrease by 9.0% yoy to `5,532cr due to increase in costs. We maintain our Buy view on the stock with a target price of `330.
Y/E March FY2014E FY2015E Sales OPM (` cr) (%) 169,963 35.3 196,050 36.6 PAT (` cr) EPS ROE (`) (%) P/E P/BV (x) 8.2 7.1 (x) 1.4 1.2 EV/EBITDA (x) 3.4 2.6 EV/Sales (x) 1.1 0.8

28,582 33.4 17.7 33,087 38.7 18.2

SBI (CMP: `1,661 / TP: - / Upside: -)

State Bank of India is slated to announce its 1QFY2014 results today. We expect the bank to report Net interest income (NII) growth of 3.2% yoy to `11,477cr.

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Market Outlook
August 12, 2013

Non-interest income is expected to increase by 10.8% yoy to `3,875cr. The operating expenses of the bank are expected to increase by 11.6% yoy to `7,188cr. Overall operating profit for the bank is expected to remain largely flat yoy at `8,164cr. Provisioning expenses for the bank is expected to increase by 20.9% yoy. Overall, we expect bottom-line for the bank to remain largely flat yoy at `3,740cr. At CMP, the stock trades at a valuation of 0.9x FY2015E ABV. Recent macro developments amidst an overall weak economic environment, clearly suggests that the asset quality pressures for the banking sector are unlikely to abate as quickly as was expected earlier. Hence, we maintain our Neutral recommendation on the stock.
Y/E March FY2014E FY2015E Op. Inc NIM (` cr) (%) PAT (` cr) EPS (`) 227.4 284.8 ABV (%) 1,567.0 1,799.1 ROA (x) 0.9 1.0 ROE P/E (x) (x) 15.4 7.3 17.0 5.8 P/ABV (x) 1.1 0.9

66,417 3.0 15,558 76,734 3.0 19,484

Tech Mahindra (CMP: `1,245/ TP: `1,390/ Upside: 12%)

Tech Mahindra is slated to announce its 1QFY2014 results today. The company is expected to clock 1% qoq USD revenue growth (excluding Mahindra Satyam); including Mahindra Satyam, the company is expected to post 1.4% qoq USD revenue growth to US$722mn. In INR terms, the consolidated revenues are expected to come in at `4,109cr, up 6.9%% qoq. The EBITDA margin of Tech Mahindra (excluding Mahindra Satyam) is expected to inch up by 94bp qoq to 20.9%. EBITDA margin of Tech Mahindra (including Mahindra Satyam) is expected to move up by 105bp qoq to 21.1%. Tech Mahindra (excluding Mahindra Satyam) is expected to post a 26.6% qoq growth in net profit on an adjusted basis. On a consolidated basis, Tech Mahindras net profit (including Mahindra Satyam) is expected to grow by 7.6% qoq to 542cr. We maintain our Accumulate rating on the stock with a target price of `1,390cr.
Y/E March FY2014E FY2015E Sales OPM (` cr) (%) 8,373 20.8 9,020 20.4 PAT (` cr) EPS ROE (`) (%) P/E P/BV (x) (x) 2.4 2.0 EV/EBITDA (x) 9.3 8.3 EV/Sales (x) 1.9 1.7

1,484 111.5 21.8 11.2 1,625 122.2 19.5 10.2

Note: Numbers exclude Mahindra Satyam financials

Marico (CMP: `199/ TP: -/ Upside: -)

Marico is expected to declare its 1QFY2014 results today. We expect the top-line to grow by 10.3% yoy to `1,397cr. OPM is expected to decline by 58bp yoy to 14.0%. Bottom-line is expected to increase by 9.5% yoy to `136cr. We maintain our Neutral recommendation on the stock.
Y/E March FY2014E FY2015E Sales OPM (` cr) (%) 5,273 14.8 6,044 14.9 PAT (` cr) 468 559 EPS ROE (`) (%) P/E P/BV (x) (x) 5.4 4.4 EV/EBITDA (x) 17.0 14.7 EV/Sales (x) 2.5 2.2

7.3 21.4 27.5 8.7 21.0 23.0

Britannia (CMP: `694/ TP: -/ Upside: -)

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Market Outlook
August 12, 2013

Britannia Industries is expected to declare its 1QFY2014 results today. We expect the top-line to grow by 14.0% yoy to `1,393cr. OPM is expected to increase by 128bp yoy to 6.6%. Bottom-line is expected to increase by 52.4% yoy to `66cr. We maintain our Neutral recommendation on the stock.
Y/E March FY2014E FY2015E Sales OPM (` cr) 6,417 7,502 (%) 6.1 6.2 PAT (` cr) EPS ROE (`) (%) P/E P/BV (x) (x) 8.5 EV/EBITDA (x) 20.8 17.4 EV/Sales (x) 1.3 1.1

254 21.3 35.7 32.6 10.6 304 25.5 34.6 27.3

India Cements (CMP: `45/ TP: -/ Upside: -)

India Cements is expected to announce its 1QFY2014 results today. We expect the company to post a top-line growth of 2.8% yoy aided by higher volumes. OPM is expected to decline by 606bp due to lower realization and higher costs. Net Profit is expected to decline by 39.1% yoy to `46cr. We maintain our neutral rating on the stock.
Y/E March FY2014E FY2015E Sales (` cr) 4,796 5,357 OPM (%) 16.4 16.1 PAT (` cr) 225 292 EPS (`) 7.3 9.5 ROE P/E P/BV (%) (x) (x) 0.4 0.4 6.4 6.1 8.0 4.7 EV/EBITDA (x) 5.2 4.7 EV/Sales (x) 45

Note: *Computed on TTM basis

United Bank- (CMP: `35 / TP: - / Upside: -)

United Bank is scheduled to announce its 1QFY2014 results today. We expect the bank to report a NII de-growth of 13.4% yoy to `592cr. Operating expenses are expected to increase by 10.9% yoy, leading to a decline in the operating profit of 27.6% on a yoy basis at `395cr. Provisioning expenses are expected to decline by 12.2% yoy at `256cr. Overall, we expect the bank to report earnings de-growth of 40.8% yoy to `103cr. Recent macro developments amidst an overall weak economic environment, clearly suggests that the asset quality pressures for the banking sector are unlikely to abate as quickly as was expected earlier. Hence, we maintain our Neutral recommendation on the stock.
Y/E March FY2014E FY2015E Op. Inc (` cr) 3,386 3,884 NIM (%) 2.3 2.5 PAT (` cr) 545 830 EPS (`) ABV (%) ROA (x) 0.5 0.6 ROE (x) 10.0 14.7 P/E (x) 2.8 1.7 P/ABV (x) 0.3 0.3

12.4 117.1 20.0 135.4

Quarterly Bloomberg Consensus Estimate

DLF Consolidated (12/08/2013)
Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit 1QFY14E 2,063 766 37.1 118 1QFY13 2,198 1,067 48.5 293 (59.7) y-o-y (%) (6.1) (28.2) 4QFY13 2,226 726 32.6 (4) (3,050.0) q-o-q (%) (7.3) 5.5

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Market Outlook
August 12, 2013

HPCL (12/08/2013)
Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit 1QFY14E 49,962 (1,430) (2.9) (2,196) 1QFY13 44,077 (8,455) (19.2) (9,249) (76.3) y-o-y (%) 13.4 (83.1) 4QFY13 61,238 6,635 10.8 7,679 (128.6) q-o-q (%) (18.4) (121.6)

ONGC (12/08/2013)
Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit 1QFY14E 20,175 10,492 52.0 5,096 1QFY13 20,084 9,930 49.4 6,078 (16.2) y-o-y (%) 0.5 5.7 4QFY13 21,389 5,995 28.0 3,389 50.4 q-o-q (%) (5.7) 75.0

State Bank of India (12/08/2013)

Particulars (` cr) Net profit 1QFY14E 3,463 1QFY13 3,752 y-o-y (%) (7.7) 4QFY13 3,299 q-o-q (%) 5.0

BPCL (13/08/2013)
Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit 1QFY14E 58,301 (832) (1.4) (1,484) 1QFY13 54,523 (8,150) (14.9) (88,374) (98.3) y-o-y (%) 6.9 (89.8) 4QFY13 66,282 6,581 9.9 4,797 (130.9) q-o-q (%) (12.0) (112.6)

GMR Infra Consolidated (13/08/2013)

Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit 1QFY14E 2,334 723 31.0 (162) 1QFY13 2,534 597 23.6 (94) 72.3 y-o-y (%) (7.9) 21.1 4QFY13 2,571 761 29.6 579 (128.0) q-o-q (%) (9.2) (5.0)

Indian Oil Corp (13/08/2013)

Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit 1QFY14E 111,000 (3,605) (3) (5,325) 1QFY13 96,603 (19,942) (21) (22,451) (76.3) y-o-y (%) 14.9 (81.9) 4QFY13 128,400 16,752 13.0 14,513 (136.7) q-o-q (%) (13.6) (121.5)

Mahindra & Mahindra (13/08/2013)

Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit 1QFY14E 10,314 1,340 13.0 861 1QFY13 9,248 1,109 12.0 726 18.6 y-o-y (%) 11.5 20.8 4QFY13 10,353 1,270 12.3 889 (3.1) q-o-q (%) (0.4) 5.5

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Market Outlook
August 12, 2013

Hindalco Industries (13/08/2013)

Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit 1QFY14E 6,032 487 8.1 322 1QFY13 5,964 463 7.8 425 (24.2) y-o-y (%) 1.1 5.2 4QFY13 6,916 643 9.3 482 (33.2) q-o-q (%) (12.8) (24.3)

Tata Steel Consolidated (13/08/2013)

Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit 1QFY14E 32,488 3,104 9.6 378 1QFY13 33,548 3,403 10.1 598 (36.8) y-o-y (%) (3.2) (8.8) 4QFY13 34,180 4,369 12.8 (6,529) (105.8) q-o-q (%) (5.0) (29.0)

Economic and Political News

Inter-ministerial panel to meet on August 12 to discuss on declining exports Government plans higher penalties to curb power overdrawal from grid Tamil Nadu forms special team to verify illicit mining in Thoothukudi district Cabinet okays leasing option in Land Bill Realty sector can double its share in GDP to 13% by 2025: CBRE

Corporate News

ONGC to finalize sharing of RIL facilities in 9 months Coal India strike call is against trade union consensus: INMF MRPL to roll out 120 fuel retail outlets
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint

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Market Outlook
August 12, 2013

Macro watch
Exhibit 1: Quarterly GDP trends
(%)

Exhibit 2: IIP trends

(%) 10.0 8.4

12.0 11.0 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0

11.4 9.3 7.7 9.5 9.2 9.9

8.0 6.0

8.6

7.5 6.5
6.0

4.0 5.1 5.4 5.2 2.0

4.7 4.8 (2.0) (0.1)

2.0

2.5 0.6

3.4 1.9

(0.7)

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

(4.0)

(2.0)

(1.0) (0.6)

(1.6)

Sep-12

Feb-13

Jul-12

Source: CSO, Angel Research

Source: MOSPI, Angel Research

Exhibit 3: Monthly WPI inflation trends

(%)

Exhibit 4: Manufacturing and services PMI

58.0 Mfg. PMI Services PMI

9.0 8.0 7.0 6.0

5.0

8.0

8.1

7.3

7.2

7.3

7.3

7.3
5.7 4.8 4.9

56.0
54.0 52.0 50.0 48.0

4.7

4.0 3.0 2.0 1.0 0.0

Sep-12

Feb-13

May-13

Dec-12

Aug-12

Jan-13

Mar-13

Nov-12

Oct-12

Apr-13

Jun-13

Dec-12

Jun-12

Aug-12

Apr-12

Jan-13

Mar-13

Mar-12

Oct-12

Nov-12

May-12

Sep-12

Feb-13

Apr-13

Jul-12

Source: MOSPI, Angel Research

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

Exhibit 5: Exports and imports growth trends

(%) 15.0 Exports yoy growth Imports yoy growth

Exhibit 6: Key policy rates

(%) 9.00 8.00 7.00 6.00 Repo rate Reverse Repo rate CRR

0.0

Dec-12

Aug-12

Jan-13

Mar-13

Nov-12

Oct-12

Sep-12

Feb-13

Apr-13

May-13

Jun-13

Jul-12

5.00 4.00 3.00

Dec-12
Aug-12

Jan-13

Nov-12

Mar-13

Oct-12

Sep-12

Feb-13

Apr-13

Jun-13

(15.0)

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

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May-13

Jul-13

May-13

May-13

Dec-12

Jun-12

Aug-12

Jan-13

Mar-13

Nov-12

Oct-12

Apr-13

Market Outlook
August 12, 2013

Stock Watch
Company Name Reco CMP ( ) Agri / Agri Chemical Rallis United Phosphorus Auto & Auto Ancillary Amara Raja Batteries Apollo Tyres Ashok Leyland Automotive Axle# Bajaj Auto Bharat Forge Bosch India* CEAT Exide Industries FAG Bearings* Hero Motocorp JK Tyre Maruti Motherson Sumi Subros Tata Motors TVS Motor Capital Goods ABB* BGR Energy BHEL Blue Star Crompton Greaves Jyoti Structures KEC International Thermax Cement ACC Buy 1,164 1,361 21,859 11,581 13,009 17.6 19.3 63.9 81.5 18.2 14.3 2.7 2.5 15.6 18.2 1.6 1.4 Reduce Neutral Neutral Buy Buy Neutral Buy Neutral 495 94 118 140 89 17 25 563 461 208 103 36 10,479 678 28,772 1,258 5,680 139 653 6,711 8,073 3,756 43,140 2,941 13,446 3,312 7,709 5,832 9,052 4,569 39,692 3,099 15,272 3,555 8,399 6,397 5.5 11.4 16.8 3.4 6.7 9.0 6.2 9.1 6.9 9.7 15.9 4.2 7.6 9.0 6.9 9.6 11.5 21.7 20.2 6.0 6.6 4.5 5.1 28.8 16.9 24.1 17.1 9.3 8.9 6.5 8.1 32.9 42.9 4.3 5.8 23.4 13.4 3.7 5.0 19.6 29.2 3.9 6.9 15.1 10.0 2.6 3.1 17.1 3.9 0.5 1.3 2.9 1.5 0.2 0.5 3.2 3.8 0.5 1.1 2.5 1.3 0.2 0.5 2.8 9.3 22.3 23.1 12.9 11.4 5.6 16.6 17.2 13.1 20.3 17.2 18.0 14.0 7.7 21.5 17.3 1.3 0.5 0.5 0.5 0.5 0.3 0.3 1.1 1.1 0.4 0.6 0.5 0.5 0.3 0.2 1.0 Buy Neutral Buy Neutral Buy Neutral Accumulate Buy Buy Neutral Accumulate Buy Buy Accumulate Buy Buy Accumulate 241 62 13 198 1,784 231 8,517 122 126 1,150 1,851 92 864 1,386 216 19 279 31 285 18 2,102 9,096 170 148 2,048 154 1,103 1,648 242 23 355 36 4,111 3,107 3,488 299 51,619 5,382 26,743 418 10,702 1,911 36,953 377 53,198 41,871 12,692 115 1,494 3,418 13,852 13,450 834 21,696 6,198 9,301 5,159 6,899 1,336 25,562 7,972 45,254 45,862 28,442 1,230 7,659 3,892 15,487 15,853 965 25,239 6,793 10,895 5,628 7,873 1,572 28,297 8,754 51,197 52,647 31,914 1,398 8,528 14.5 11.4 6.5 9.3 19.2 14.6 16.8 9.3 14.7 13.8 14.5 7.1 11.4 11.2 8.4 10.5 13.5 6.0 14.5 11.5 8.5 10.6 19.3 14.9 18.0 9.0 14.7 16.0 14.4 7.1 11.7 11.1 8.7 10.5 13.7 6.2 18.5 12.8 0.4 17.3 119.3 14.5 339.9 43.5 7.9 75.6 111.2 37.5 61.2 94.6 13.0 2.3 38.7 4.9 20.4 14.9 1.9 27.1 140.2 17.3 423.1 48.6 9.0 102.4 146.3 44.0 70.2 109.9 16.1 3.8 44.1 5.9 13.0 4.8 34.3 11.4 15.0 15.9 25.1 2.8 15.9 15.2 16.6 2.5 14.1 14.7 16.6 8.2 7.2 6.5 11.8 4.1 7.0 7.3 12.7 13.4 20.1 2.5 13.9 11.2 12.7 2.1 12.3 12.6 13.4 5.0 6.3 5.3 3.1 0.8 1.1 1.1 5.3 2.1 4.2 0.5 2.7 1.9 6.1 0.4 3.0 2.0 4.4 0.4 1.8 1.1 2.6 0.7 1.0 1.0 4.2 1.9 3.6 0.4 2.4 1.7 4.7 0.3 2.5 1.7 3.4 0.4 1.4 0.9 26.6 17.5 2.3 9.5 38.9 13.6 16.6 18.4 18.3 13.4 40.1 16.4 22.7 14.4 29.4 4.8 28.5 17.8 23.8 17.3 11.0 14.0 36.6 14.7 17.6 17.5 18.0 15.8 42.1 16.6 21.9 14.6 28.6 7.6 25.1 19.0 1.2 0.4 0.4 0.4 2.0 1.0 2.5 0.2 1.2 1.2 1.2 0.3 0.9 0.7 0.6 0.3 0.4 0.1 1.0 0.3 0.3 0.4 1.6 0.9 2.1 0.2 1.0 1.0 1.1 0.3 0.8 0.6 0.5 0.3 0.4 0.1 Neutral Buy 141 137 225 2,743 6,061 1,674 10,091 1,923 11,302 13.7 16.5 13.7 16.5 6.8 19.2 7.6 22.5 20.7 7.1 18.6 6.1 3.9 1.1 3.4 1.0 20.0 17.0 19.6 17.2 1.8 0.7 1.6 0.6 Target Price ( ) Mkt Cap ( cr ) Sales ( cr ) FY14E FY15E OPM(%) FY14E FY15E EPS ( ) FY14E FY15E PER(x) FY14E FY15E P/BV(x) FY14E FY15E RoE(%) FY14E FY15E EV/Sales(x) FY14E FY15E

Mahindra and Mahindra Buy

75,084 215,043 240,077

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August 12, 2013

Stock Watch
Company Name Reco CMP ( ) Cement Ambuja Cements India Cements J K Lakshmi Cement Madras Cements Shree Cement^ UltraTech Cement Construction Ashoka Buildcon Consolidated Co IRB Infra ITNL IVRCL Infra Jaiprakash Asso. Larsen & Toubro Nagarjuna Const. Punj Lloyd Sadbhav Engg. Simplex Infra Unity Infra Financials Allahabad Bank Andhra Bank Axis Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank Corporation Bank Dena Bank Federal Bank Neutral Reduce Buy Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral 71 59 1,086 512 170 40 244 57 272 46 318 51 1,255 3,565 3,285 50,919 21,570 10,109 2,626 10,829 5,902 4,155 1,621 5,432 6,843 4,868 19,280 15,896 14,482 4,529 11,454 8,196 5,641 3,307 2,798 7,528 5,390 22,886 17,947 16,069 4,780 12,378 9,202 6,083 3,531 3,250 2.5 2.4 3.3 2.2 2.3 3.0 2.0 2.4 2.0 2.2 3.0 2.5 2.5 3.3 2.3 2.2 2.8 2.0 2.4 2.0 2.4 3.0 26.0 12.3 130.7 95.4 55.0 12.3 52.4 6.1 82.7 17.5 38.1 30.1 16.6 157.1 124.4 62.2 11.8 60.5 15.9 98.1 21.6 51.9 2.8 4.8 8.3 5.4 3.1 3.2 4.7 9.3 3.3 2.6 8.4 2.4 3.5 6.9 4.1 2.7 3.4 4.0 3.6 2.8 2.1 6.1 0.4 0.5 1.3 0.7 0.5 0.5 0.5 0.7 0.4 0.3 0.8 0.4 0.4 1.2 0.6 0.4 0.5 0.5 0.6 0.4 0.3 0.7 11.8 7.9 17.3 12.0 13.7 16.5 9.8 5.2 12.6 11.9 9.8 12.4 10.0 18.1 14.2 13.9 14.1 10.4 12.8 13.5 13.2 12.3 Buy Neutral Buy Buy Neutral Buy Buy Buy Neutral Buy Neutral Neutral 46 7 71 120 11 31 780 19 24 71 50 20 60 106 156 41 1,044 30 100 721 121 2,355 2,335 344 6,912 72,155 499 809 1,074 249 146 1,912 1,715 3,805 7,423 5,673 12,946 68,946 6,167 12,726 2,462 6,308 2,146 2,131 1,824 4,248 7,970 5,892 14,897 78,040 6,945 14,226 2,731 7,033 2,339 21.0 2.4 45.1 27.5 8.1 24.7 10.0 8.0 8.2 10.6 9.5 13.7 21.5 6.2 45.3 28.7 8.4 25.6 10.0 8.2 8.2 10.6 9.6 13.8 5.0 (2.9) 15.0 30.3 1.4 1.2 49.0 2.7 0.9 5.9 11.9 11.0 5.5 (0.4) 15.8 32.0 1.8 2.7 55.2 3.6 1.0 6.7 18.7 11.5 9.1 (2.2) 4.7 4.0 7.8 25.4 15.9 7.3 28.4 12.1 4.2 1.8 8.3 (18.1) 4.5 3.8 6.1 11.6 14.1 5.4 23.8 10.7 2.7 1.7 0.7 0.3 0.7 0.6 0.2 0.5 2.3 0.2 0.3 1.2 0.2 0.2 0.6 0.3 0.6 0.5 0.2 0.5 2.1 0.2 0.3 1.1 0.2 0.2 14.5 15.0 2.0 2.0 14.9 2.7 1.0 10.2 4.5 9.3 13.9 14.0 2.6 4.3 15.3 3.6 1.2 10.5 6.7 9.0 8.8 7.6 1.7 0.5 2.8 2.4 0.5 2.4 1.2 0.4 0.6 0.7 0.5 0.6 1.7 0.5 3.1 2.5 0.5 2.2 1.1 0.4 0.6 0.7 0.5 0.6 Neutral Neutral Buy Neutral Neutral Neutral 179 45 57 163 3,836 1,672 79 27,580 1,376 667 3,888 13,365 45,843 9,975 4,929 2,235 4,234 6,607 22,021 11,409 5,434 2,684 4,788 7,520 25,274 22.4 17.4 19.4 23.9 27.5 22.0 23.1 17.1 21.4 24.0 26.7 21.6 9.4 8.9 15.0 18.5 322.8 99.5 11.1 10.9 18.4 22.8 374.3 113.3 19.1 5.0 3.8 8.8 11.9 16.8 16.0 4.1 3.1 7.2 10.3 14.8 2.9 0.4 0.5 1.4 3.0 2.6 2.7 0.4 0.4 1.2 2.4 2.3 15.7 7.7 13.2 17.2 27.8 16.7 17.2 9.1 14.3 18.2 25.6 16.6 2.3 0.6 0.4 1.3 1.4 2.1 1.9 0.5 0.9 1.0 1.0 1.9 Target Price ( ) Mkt Cap ( cr ) Sales ( cr ) FY14E FY15E OPM(%) FY14E FY15E EPS ( ) FY14E FY15E PER(x) FY14E FY15E P/BV(x) FY14E FY15E RoE(%) FY14E FY15E EV/Sales(x) FY14E FY15E

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August 12, 2013

Stock Watch
Company Name Reco CMP ( ) Financials HDFC HDFC Bank ICICI Bank IDBI Bank Indian Bank IOB J & K Bank LIC Housing Finance Oriental Bank Punjab Natl.Bank South Ind.Bank St Bk of India Syndicate Bank UCO Bank Union Bank United Bank Vijaya Bank Yes Bank FMCG Asian Paints Britannia Colgate Dabur India GlaxoSmith Con* Godrej Consumer HUL ITC Marico Nestle* Tata Global Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral 431 694 1,297 161 3,953 868 600 325 199 5,015 147 41,351 8,311 17,644 28,116 16,625 29,553 129,655 257,364 12,855 48,348 9,060 12,332 6,417 3,588 7,183 3,617 7,801 28,415 34,294 5,273 9,330 8,069 14,524 7,502 4,130 8,297 4,259 9,017 31,962 39,991 6,044 10,860 8,957 16.3 6.1 18.9 16.8 16.1 16.2 13.6 36.8 14.8 21.8 9.8 16.1 6.3 19.4 16.9 16.4 15.9 14.1 37.0 14.9 21.9 9.7 13.9 21.3 41.2 5.4 122.2 25.1 16.7 11.3 7.3 123.3 7.8 16.0 25.5 48.4 6.3 148.7 29.7 18.2 13.3 8.7 149.7 8.6 31.0 32.7 31.5 30.2 32.4 34.5 36.0 28.9 27.5 40.7 18.7 26.9 27.3 26.8 25.6 26.6 29.3 33.0 24.4 23.0 33.5 17.1 9.9 10.6 30.6 10.6 10.1 7.4 34.5 9.5 5.4 20.0 2.2 7.8 8.5 23.2 8.4 8.1 6.2 25.1 7.7 4.4 14.6 2.2 35.2 35.7 105.1 39.2 34.1 24.9 112.2 36.1 21.4 56.4 9.5 32.5 34.6 98.5 36.7 33.7 24.2 88.1 34.9 21.0 50.3 9.7 3.3 1.3 4.8 3.9 4.1 3.9 4.4 7.2 2.5 5.2 1.1 2.7 1.1 4.1 3.4 3.4 3.3 3.9 6.1 2.1 4.4 1.0 Accumulate Buy Buy Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral 745 611 875 58 72 40 1,013 168 141 540 20 1,661 72 56 117 35 37 283 830 745 1,038 115,829 146,014 101,013 7,783 3,088 3,729 4,911 8,499 4,104 19,093 2,734 113,649 4,319 4,211 6,985 1,298 1,833 10,168 8,679 27,392 25,727 9,518 5,940 7,692 3,038 2,180 6,918 20,766 1,800 66,417 6,740 6,770 10,458 3,386 2,718 4,417 10,350 33,264 29,969 10,468 6,396 8,627 3,370 2,732 7,459 23,515 2,023 76,734 7,512 7,017 11,809 3,884 2,941 5,486 3.6 4.6 3.2 2.0 2.7 2.2 3.7 2.4 2.6 3.4 2.7 3.0 2.5 2.8 2.5 2.3 1.8 2.7 3.6 4.6 3.2 2.0 2.7 2.3 3.9 2.5 2.5 3.4 2.7 3.0 2.5 2.6 2.5 2.5 1.9 2.8 37.5 36.3 83.2 15.5 24.9 8.1 214.2 26.3 46.7 135.0 3.7 227.4 21.0 14.8 32.0 12.4 7.0 42.9 44.7 45.1 96.7 22.1 32.9 15.2 202.6 32.1 52.5 164.8 4.2 284.8 23.5 15.5 40.6 20.0 9.0 49.5 19.9 16.8 10.5 3.8 2.9 5.0 4.7 6.4 3.0 4.0 5.5 7.3 3.4 3.8 3.7 2.8 5.3 6.6 16.7 13.6 9.1 2.6 2.2 2.7 5.0 5.2 2.7 3.3 4.9 5.8 3.1 3.6 2.9 1.7 4.1 5.7 4.1 3.4 1.4 0.4 0.3 0.3 0.9 1.2 0.3 0.6 0.9 1.1 0.4 0.6 0.5 0.3 0.4 1.4 3.7 2.9 1.3 0.3 0.3 0.3 0.8 1.0 0.3 0.5 0.8 0.9 0.4 0.5 0.4 0.3 0.4 1.2 30.1 21.9 14.9 10.2 10.3 5.9 19.8 19.0 10.8 14.4 16.2 15.4 12.6 14.4 11.6 10.0 8.2 23.9 30.7 22.8 15.4 13.3 12.4 10.5 16.3 19.9 11.1 15.7 16.2 17.1 12.8 13.5 13.4 14.7 9.8 22.8 Target Price ( ) Mkt Cap ( cr ) Sales ( cr ) FY14E FY15E OPM(%) FY14E FY15E EPS ( ) FY14E FY15E PER(x) FY14E FY15E P/BV(x) FY14E FY15E RoE(%) FY14E FY15E EV/Sales(x) FY14E FY15E

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Market Outlook
August 12, 2013

Stock Watch
Company Name Reco CMP ( ) IT HCL Tech^ Hexaware* Infosys Infotech Enterprises KPIT Cummins Mindtree Mphasis& NIIT Persistent TCS Tech Mahindra Wipro Media D B Corp HT Media Jagran Prakashan PVR Sun TV Network Metals & Mining Bhushan Steel Coal India Electrosteel Castings GMDC Hind. Zinc Hindalco JSW Steel MOIL Monnet Ispat Nalco NMDC SAIL Neutral Neutral Buy Buy Buy Neutral Neutral Buy Buy Neutral Buy Neutral 461 268 11 95 103 91 504 192 100 26 102 40 13 115 120 223 125 123 10,432 169,405 354 3,031 43,436 17,490 12,179 3,224 635 6,739 40,460 16,562 13,794 70,158 1,976 1,701 12,389 89,352 44,605 956 2,326 7,656 10,718 44,060 17,088 74,443 2,017 1,985 13,093 93,672 47,040 982 2,709 7,988 11,514 54,786 30.9 29.8 11.8 47.8 48.5 8.8 15.7 42.3 21.4 13.1 66.6 9.4 33.5 30.2 12.7 48.8 51.7 9.2 16.0 44.3 23.1 13.5 64.5 11.5 49.3 25.2 1.3 17.4 15.2 13.4 62.5 25.3 33.3 2.6 15.5 5.2 66.6 27.1 2.6 20.6 17.0 15.0 75.6 26.2 43.1 2.6 16.1 7.2 9.4 10.6 8.6 5.5 6.8 6.8 8.1 7.6 3.0 10.3 6.6 7.7 6.9 9.9 4.2 4.6 6.1 6.1 6.7 7.3 2.3 10.0 6.3 5.6 1.0 2.6 0.1 1.1 1.2 0.5 0.7 1.1 0.2 0.6 1.3 0.4 0.9 2.2 0.9 1.0 0.5 0.6 1.0 0.2 0.5 1.2 0.4 11.3 33.3 2.6 20.7 18.5 7.3 8.5 14.6 8.3 5.5 21.2 5.2 13.5 33.1 5.2 20.9 18.0 7.6 9.6 13.7 9.9 5.5 20.0 6.8 2.4 1.6 0.5 1.3 1.3 0.5 0.8 0.7 1.3 0.3 1.7 0.6 1.9 1.4 0.1 1.0 0.9 0.5 0.7 0.8 1.0 0.3 1.5 0.5 Buy Buy Buy Neutral Neutral 250 96 89 351 413 302 117 116 4,582 2,247 2,951 1,394 16,260 1,783 2,205 1,683 1,359 2,287 1,968 2,380 1,845 1,540 2,551 25.2 15.1 22.3 17.3 69.7 26.8 15.6 23.7 17.4 70.5 14.6 8.3 6.5 17.2 20.0 17.2 9.3 7.8 21.6 23.3 17.2 11.5 13.6 20.4 20.6 14.5 10.3 11.4 16.3 17.7 4.5 1.4 2.8 2.0 5.1 3.8 1.3 2.5 1.9 4.5 23.9 11.6 21.3 10.3 26.4 24.2 11.6 23.1 12.0 27.3 2.5 0.7 1.8 1.4 6.8 2.2 0.5 1.7 1.3 5.9 Accumulate Neutral Neutral Accumulate Accumulate Accumulate Neutral Reduce Accumulate Accumulate Accumulate Neutral 905 118 2,961 176 128 982 404 18 518 1,846 1,245 447 1,012 190 145 1,050 15 568 2,060 1,390 63,039 3,538 170,037 1,962 2,466 4,083 8,493 289 2,072 361,313 28,913 110,038 30,698 2,213 47,001 2,052 2,670 2,768 6,372 1,144 1,533 79,005 8,102 42,196 33,933 2,479 51,196 2,263 3,018 3,006 6,852 1,267 1,715 91,576 8,709 45,890 22.1 21.5 26.2 17.2 17.3 19.7 18.0 9.0 22.2 29.7 19.7 21.0 21.5 20.5 26.4 17.6 16.7 19.9 18.2 9.1 22.5 30.0 19.2 21.6 65.3 12.1 171.3 20.7 14.1 103.1 38.0 4.3 49.2 88.6 107.5 28.3 69.8 12.9 189.4 22.5 15.3 105.3 43.5 5.4 56.8 103.1 117.0 31.2 13.9 9.8 17.3 8.5 9.0 9.5 10.6 4.1 10.5 20.8 11.6 15.8 13.0 9.2 15.6 7.8 8.4 9.3 9.3 3.3 9.1 17.9 10.6 14.3 3.5 2.4 3.5 1.3 1.7 2.3 1.5 0.4 1.7 6.6 2.5 3.3 2.9 2.1 3.0 1.1 1.4 1.8 1.3 0.4 1.5 5.2 2.0 2.8 26.5 25.4 20.4 14.9 20.9 24.8 14.3 10.3 16.4 31.5 21.2 20.7 23.0 23.5 19.3 14.0 18.4 20.3 14.2 12.0 16.1 29.2 18.9 19.4 1.8 1.4 3.0 0.6 0.9 1.2 0.8 1.0 4.3 3.6 2.1 1.6 1.2 2.6 0.5 0.7 1.0 0.7 0.8 3.7 3.2 1.8 Target Price ( ) Mkt Cap ( cr ) Sales ( cr ) FY14E FY15E OPM(%) FY14E FY15E EPS ( ) FY14E FY15E PER(x) FY14E FY15E P/BV(x) FY14E FY15E RoE(%) FY14E FY15E EV/Sales(x) FY14E FY15E

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Market Outlook
August 12, 2013

Stock Watch
Company Name Reco CMP ( ) Metals & Mining Sesa Goa Sterlite Inds Tata Steel Sarda Prakash Industries Godawari Power and Ispat Oil & Gas Cairn India GAIL ONGC Reliance Industries Gujarat Gas* Indraprastha Gas Petronet LNG Gujarat State Petronet Ltd. Pharmaceuticals Alembic Pharma Aurobindo Pharma Aventis* Cadila Healthcare Cipla Dr Reddy's Dishman Pharma GSK Pharma* Indoco Remedies Ipca labs Lupin Ranbaxy* Sun Pharma Power GIPCL NTPC Buy Buy 56 137 65 163 839 113,293 1,444 75,046 1,482 81,780 33.4 23.5 33.0 23.9 13.7 12.7 14.8 13.6 4.1 10.8 3.8 10.1 0.5 1.3 0.4 1.2 12.3 12.2 12.0 12.0 0.7 2.2 0.4 2.2 Buy Buy Buy Accumulate Accumulate Buy 131 76 218 75 29 66 155 92 260 85 33 78 11,420 25,642 270 389 217 3,817 44,493 1,494 2,615 2,171 5,781 45,599 1,568 2,776 2,317 12.1 22.4 9.7 19.1 12.1 14.9 17.7 23.9 10.8 20.3 12.0 15.8 27.0 16.8 30.9 31.3 9.8 36.4 29.6 19.2 47.6 36.5 10.4 46.6 4.9 4.5 7.1 2.4 2.9 1.8 4.4 4.0 4.6 2.1 2.8 1.4 0.6 0.5 0.7 0.3 0.2 0.2 0.5 0.4 0.6 0.2 0.2 0.2 12.9 10.5 9.6 11.8 6.5 11.6 12.5 10.9 13.4 12.4 6.5 13.0 3.8 0.5 0.5 0.5 0.4 0.5 2.5 0.5 0.5 0.4 0.4 0.4 Target Price ( ) Mkt Cap ( cr ) Sales ( cr ) FY14E FY15E OPM(%) FY14E FY15E EPS ( ) FY14E FY15E PER(x) FY14E FY15E P/BV(x) FY14E FY15E RoE(%) FY14E FY15E EV/Sales(x) FY14E FY15E

21,216 140,917 151,537

Buy Neutral Buy Neutral Neutral Neutral Accumulate Buy

295 303 273 865 195 264 118 51

364 330 135 64

56,272 38,435

18,403 49,700

17,925 48,822

71.9 16.0 36.3 8.9 12.8 23.4 5.3 91.9

62.1 16.6 38.3 8.7 12.6 22.8 5.9 91.9

62.1 32.9 34.7 72.3 22.6 26.7 14.1 10.1

57.4 33.4 41.9 76.8 23.1 30.4 16.9 11.3

4.7 9.2 7.9 12.0 8.6 9.9 8.4 5.1

5.1 9.1 6.5 11.3 8.4 8.7 7.0 4.5

1.0 1.4 1.4 1.3 2.3 2.1 1.7 0.8

0.9 1.2 1.2 1.1 2.1 1.7 1.4 0.7

22.6 15.9 18.3 12.3 28.2 22.7 21.7 17.3

17.8 14.4 19.5 11.8 25.6 21.8 21.9 16.8

1.8 0.3 1.1 0.7 0.6 1.1 0.3 1.9

1.6 0.2 0.8 0.6 0.5 0.9 0.3 1.5

233,650 170,063 198,461 279,502 397,546 421,695 2,498 3,693 8,854 2,887 3,270 3,700 39,449 1,171 3,414 4,218 43,315 1,287

Accumulate Buy Neutral Buy Buy Accumulate Buy Neutral Buy Neutral Accumulate Accumulate Neutral

156 161 2,479 708 411 2,218 45 2,331 64 643 801 359 507

165 242 929 477 2,535 73 78 904 384 -

2,937 4,690 5,710 14,492 32,976 37,709 360 19,743 591 8,109 35,876 15,207 104,867

1,736 6,641 1,682 7,123 9,274 13,377 1,394 2,744 747 3,246 11,576 11,400 13,509

2,008 7,637 1,917 8,367 10,796 15,350 1,534 2,964 906 3,830 13,855 12,060 15,846

17.1 15.9 15.6 15.5 23.1 20.4 22.5 22.0 15.3 20.5 22.0 10.5 41.0

18.9 15.9 15.6 15.7 23.1 20.1 22.4 23.4 15.3 21.7 22.0 12.5 41.0

10.7 17.3 91.9 37.3 21.0 112.1 14.8 59.2 5.9 36.2 35.8 17.5 16.5

13.9 20.6 101.7 44.7 23.8 126.6 16.6 66.6 7.6 44.9 43.0 22.5 19.9

14.6 9.3 27.0 19.0 19.6 19.8 3.0 39.4 10.9 17.8 22.4 20.5 30.7

11.2 7.8 24.4 15.8 17.3 17.5 2.7 35.0 8.4 14.3 18.6 16.0 25.5

4.6 1.5 3.8 4.0 3.1 4.2 0.3 9.8 1.3 4.2 5.4 3.3 6.2

3.4 1.2 3.8 3.3 2.7 3.5 0.3 9.4 1.2 3.3 4.3 2.8 5.1

35.0 19.5 15.6 22.9 17.2 23.5 10.8 24.9 12.5 26.1 27.1 17.0 22.0

34.7 18.9 17.1 22.9 16.8 21.8 11.0 27.5 14.4 25.7 25.8 19.1 22.0

1.8 1.2 2.9 2.4 3.3 2.9 0.9 6.4 1.0 2.6 3.2 1.3 7.2

1.5 1.0 2.3 2.0 2.7 2.5 0.8 5.9 0.9 2.2 2.6 1.2 5.9

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Market Outlook
August 12, 2013

Stock Watch
Company Name Reco CMP ( ) Real Estate DLF MLIFE Telecom Bharti Airtel Idea Cellular Rcom Others Abbott India* Bajaj Electricals Cera Sanitaryware Cravatex Finolex Cables Force Motors Goodyear India* Hitachi IFB Agro ITD Cementation Jyothy Laboratories MRF Page Industries Relaxo Footwears Siyaram Silk Mills Styrolution ABS India* TAJ GVK Tata Sponge Iron TTK Healthcare Tree House TVS Srichakra United Spirits Vesuvius India* Buy Buy Buy Buy Buy Buy Accumulate Buy Accumulate Buy Buy Buy Accumulate Buy Buy Buy Buy Buy Buy Buy Buy Neutral Buy 1,361 157 511 256 55 258 307 107 2,321 144 160 161 12,990 4,281 719 192 356 57 250 490 250 168 2,259 358 1,659 184 613 459 68 349 345 153 156 232 199 16,218 4,669 981 228 492 108 371 632 297 230 439 2,892 1,570 646 66 834 336 708 291 2,052 129 184 2,676 5,509 4,775 863 180 626 356 385 380 901 129 32,836 727 1,863 3,885 631 248 2,563 2,304 1,458 1,080 1,842 491 1,417 1,220 11,799 1,059 1,196 1,158 1,007 300 814 416 153 1,591 12,294 600 2,081 4,472 797 284 2,899 2,649 1,542 1,199 2,131 642 1,545 1,476 12,587 1,296 1,401 1,322 1,108 319 849 481 194 1,720 14,162 638 11.8 4.0 14.5 6.5 9.8 3.1 8.3 8.9 7.7 12.3 11.2 13.3 14.1 19.5 11.9 10.6 8.4 35.8 17.0 4.5 53.0 6.1 12.0 20.1 12.4 5.8 13.7 7.3 9.8 3.6 9.0 9.1 7.8 13.8 11.1 13.6 19.8 12.6 11.0 8.7 36.2 17.6 6.1 52.8 6.4 12.0 19.4 71.2 6.8 42.6 27.2 10.1 28.0 32.3 18.3 111.1 35.0 18.9 5.5 125.0 55.6 60.5 30.3 7.9 64.6 16.2 12.4 30.5 42.1 35.7 83.0 15.4 51.1 38.2 11.3 43.7 37.0 19.1 130.9 50.9 25.7 9.0 155.6 75.4 75.9 35.1 9.1 69.2 25.3 15.6 38.3 67.7 36.6 19.1 23.3 12.0 9.4 5.4 9.2 9.5 5.9 20.9 4.1 8.5 29.2 7.3 34.3 12.9 3.2 11.8 7.2 3.9 30.2 20.2 5.5 53.7 10.0 16.4 10.3 10.0 6.7 4.8 5.9 8.3 5.6 17.7 2.8 6.2 17.8 7.2 27.5 9.5 2.5 10.1 6.2 3.6 19.3 16.0 4.4 33.4 9.8 3.8 2.1 2.9 1.5 0.8 0.3 1.7 1.0 2.6 0.7 0.4 3.4 1.5 17.0 3.1 0.5 1.3 1.0 0.5 3.7 2.4 0.7 3.8 1.8 3.3 1.8 2.3 1.2 0.7 0.3 1.5 0.9 2.3 0.6 0.4 3.0 1.3 12.4 2.4 0.4 1.2 0.9 0.5 3.3 2.1 0.7 3.4 1.6 21.6 8.8 26.5 15.7 14.3 3.1 19.5 19.2 13.3 18.2 5.3 12.1 23.5 56.3 27.1 16.8 11.7 13.9 14.5 12.6 11.8 13.5 9.1 19.4 21.5 17.3 25.3 18.5 13.8 4.7 19.3 17.0 13.9 21.6 6.9 17.7 19.2 52.2 28.1 18.1 12.2 14.4 13.8 18.1 13.1 15.5 10.7 17.1 1.3 0.4 1.0 0.4 0.2 0.1 0.3 0.4 1.0 0.2 0.5 2.5 0.6 4.6 0.9 0.4 0.6 1.5 0.1 0.8 6.1 0.3 3.0 1.0 1.0 0.4 0.8 0.4 0.2 0.1 0.3 0.3 0.9 0.1 0.5 2.0 0.5 3.8 0.7 0.3 0.5 1.3 (0.1) 0.7 4.6 0.2 2.6 0.9 Neutral Neutral Neutral 337 158 124 134,872 52,362 25,625 83,535 25,640 22,751 92,173 28,459 24,628 32.0 26.9 30.9 33.1 27.2 31.3 9.2 4.0 3.4 12.9 4.9 5.3 36.8 39.4 36.2 26.1 31.9 23.6 2.4 3.3 0.8 2.2 3.0 0.7 6.8 8.4 2.1 8.9 9.4 3.1 2.3 2.4 2.7 2.0 2.2 2.4 Buy Accumulate 138 430 175 483 24,570 1,758 8,293 888 9,622 1,002 36.5 27.0 36.1 29.9 5.7 33.9 6.7 42.1 24.2 12.7 20.5 10.2 0.9 1.3 0.8 1.1 3.7 9.9 4.1 11.2 5.1 2.6 4.2 2.3 Target Price ( ) Mkt Cap ( cr ) Sales ( cr ) FY14E FY15E OPM(%) FY14E FY15E EPS ( ) FY14E FY15E PER(x) FY14E FY15E P/BV(x) FY14E FY15E RoE(%) FY14E FY15E EV/Sales(x) FY14E FY15E

Honeywell Automation* Neutral

13.5 1,792.0 1,802.0

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Market Outlook
August 12, 2013

Stock Watch
Company Name Reco CMP ( ) Others HSIL Buy 80 117 531 2,042 2,363 14.6 14.8 12.3 16.5 6.5 4.9 0.5 0.5 7.6 9.4 0.7 0.6 Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 08, 2013 Target Price ( ) Mkt Cap ( cr ) Sales ( cr ) FY14E FY15E OPM(%) FY14E FY15E EPS ( ) FY14E FY15E PER(x) FY14E FY15E P/BV(x) FY14E FY15E RoE(%) FY14E FY15E EV/Sales(x) FY14E FY15E

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Market Outlook
August 12, 2013 Result Calendar
Date August 12, 2013 August 13, 2013 August 14, 2013 August 29, 2013 Company ONGC, St Bk of India, DLF, HPCL, Marico, Tech Mahindra, Indraprasth Gas, Britannia, United Bank, India Cements, Consolidated Co, Jyothy Laboratories IOC, M&M, Tata Steel, Hindalco, BPCL, GMR Infra., GSPL, Sadbhav Engg., IVRCL Infra, Cravatex SAIL, Nalco, LIC Housing Fin., Essar Oil, Bhushan Steel, HDIL, Monnet Ispat, Amara Raja Batteries, Anant Raj, Orchid Chemicals, Simplex Infra, Electrosteel Castings, Patel Engg., Madhucon Proj, JK Tyre, Abbott India Mphasis

Source: Bloomberg, Angel Research

Global economic events release calendar

Date August 12, 2013 Time 4:29PM 4:29PM 5:30PM August 13, 2013 August 14, 2013 2:00PM 2:00PM 11:30AM 12:00PM 2:30PM 6:00PM August 15, 2013 6:00PM 6:00PM 6:45PM August 16, 2013 6:00PM 6:00PM 2:30PM August 21, 2013 August 22, 2013 August 23, 2013 7:30PM 1:00PM 1:00PM 7:30PM 7:30PM 2:00PM August 27, 2013 August 29, 2013 August 30, 2013 7:30PM 6:00PM 1:25PM 5:30PM Country Event Description India India India UK UK India US US US US US US US Imports YoY% Exports YoY% Industrial Production YoY CPI (YoY) Jobless claims change Monthly Wholesale Prices YoY% Producer Price Index (mom) Initial Jobless claims Consumer price index (mom) Industrial Production Housing Starts Building permits Existing home sales Unit % Change % Change % Change % Change % Change % Change % Change % Change % Change Thousands % Change % Thousands Thousands % Million Value Value Value Thousands % Change S.A./ 1985=100 % Change Thousands % Change Period Jul Jul Jun Jul Jul 2Q P Jul 2Q A Jul Aug 10 Jul Jul Jul Jul Jul F Jul Aug A Aug A Aug A Jul 2Q P Aug 2Q S Aug 2Q Bloomberg Data Last Reported Estimated (0.37) (4.60) (1.60) 2.90 (21.20) (1.40) 4.86 (0.30) 0.80 328.00 0.50 0.31 836.00 918.00 1.60 5.08 51.30 50.70 (17.40) 497.00 1.40 80.30 1.70 (7.00) 4.80 --(1.10) 2.80 (15.00) 0.70 5.00 0.20 0.30 335.00 0.20 0.30 905.00 948.00 1.60 5.13 ---490.00 ------

Germany GDP nsa (YoY) Euro Zone Euro-Zone GDP s.a. (QoQ)

Euro Zone Euro-Zone CPI (YoY) Germany PMI Services Germany PMI Manufacturing Euro Zone Euro-Zone Consumer Confidence US UK US US India New home sales GDP (YoY) Consumer Confidence GDP Qoq (Annualised) Qtrly GDP YoY%

Germany Unemployment change (000's)

Source: Bloomberg, Angel Research

Market Outlook
August 12, 2013

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