Weekly review 30-10-10

Please refer to important disclosures at the end of this report
WWWWWeekly Revieweekly Revieweekly Revieweekly Revieweekly Review
October 30, 2010
Markets end the week lower
The Indian stock markets showed weakness during the week. The week also
witnessed a bumpy ride for the benchmark indices, which more or less
mirrored global cues. The Sensex and Nifty closed the week lower by 0.7%
and 0.8%, respectively. The BSE mid-cap and small-cap indices fell more
than their large cap counterparts, losing 1.5% and 1.2%, respectively.
The week saw a number of 2QFY2011 earnings releases, most of which
were in line with expectations. On the sectoral front, the BSE realty index
was the biggest loser, falling by 4.3%. It was followed by the BSE PSU index,
which fell by 2.8%. On the other hand, the BSE auto index was the biggest
gainer of the week, ending the week higher by 1.9%.
BSE Realty Index - Profit booking drives stocks lower
The realty index fell by 4.3%, widely underperforming the Sensex, which
was down by just 0.7% during the week. The top losers in the sector were
IBREL (9.0%), HDIL (7.3%), Anant Raj (6.5%), DB Realty (5.9%) and
Orbit Corp. (5.2%). While 2QFY2011 results from players like IBREL and
Sobha have been encouraging on the execution and realisations fronts,
underperformance in stock prices could be attributed to profit-booking after
a recent rally in the realty sector.
Inside This Weekly
RIL - 2QFY2011 Result Update:RIL - 2QFY2011 Result Update:RIL - 2QFY2011 Result Update:RIL - 2QFY2011 Result Update:RIL - 2QFY2011 Result Update: For 2QFY2011, RIL’s performance was
largely in line with our expectation on the top-line, EBIDTA and bottom-line
fronts. Key features during the quarter were improved refining margins (at
US$7.9/bbl v/s US $6.0/bbl in 2QFY2010); an 8.3% qoq decline in oil
production at the MA oilfields (at ~22,229bpd); and production shutdown
at Panna Mukta gas fields, which resulted in a 77.9% qoq decline to
1.22mmscmd. WWWWWe maintain a Buy on RIL with a Te maintain a Buy on RIL with a Te maintain a Buy on RIL with a Te maintain a Buy on RIL with a Te maintain a Buy on RIL with a Target Parget Parget Parget Parget Price ofrice ofrice ofrice ofrice of `````1,260,1,260,1,260,1,260,1,260,
translating into an upside of 15.0% from current levels.translating into an upside of 15.0% from current levels.translating into an upside of 15.0% from current levels.translating into an upside of 15.0% from current levels.translating into an upside of 15.0% from current levels.
ONGC - 2QFY2011 Result Update:ONGC - 2QFY2011 Result Update:ONGC - 2QFY2011 Result Update:ONGC - 2QFY2011 Result Update:ONGC - 2QFY2011 Result Update: ONGC's 2QFY2011 numbers were in
line with our expectation on the top-line front, while they were lower than
our expectation on the bottom-line front because of higher DD&A
expenditure. On account of likely fuel reforms going ahead,
we recommend an Accumulate rating on ONGC with a revised Twe recommend an Accumulate rating on ONGC with a revised Twe recommend an Accumulate rating on ONGC with a revised Twe recommend an Accumulate rating on ONGC with a revised Twe recommend an Accumulate rating on ONGC with a revised Targetargetargetargetarget
PPPPPrice ofrice ofrice ofrice ofrice of `````1,391 (1,391 (1,391 (1,391 (1,391 (`````1,356).1,356).1,356).1,356).1,356).
ICICI Bank - 2QFY2011 Result Update:ICICI Bank - 2QFY2011 Result Update:ICICI Bank - 2QFY2011 Result Update:ICICI Bank - 2QFY2011 Result Update:ICICI Bank - 2QFY2011 Result Update: ICICI Bank's net profit grew by
healthy 18.9% yoy, which was above our estimates mainly on account of
higher NIM and lower effective tax rate. The key positive of the results was
continuation of the declining trend in net additions in gross NPAs from retail
loans (almost nil) for the sixth consecutive quarter and a substantial reduction
in NPA provisioning burden. WWWWWe maintain a Buy rating on the stock with ae maintain a Buy rating on the stock with ae maintain a Buy rating on the stock with ae maintain a Buy rating on the stock with ae maintain a Buy rating on the stock with a
TTTTTarget Parget Parget Parget Parget Price ofrice ofrice ofrice ofrice of `1,335, implying an upside of 15.0% from current levels.1,335, implying an upside of 15.0% from current levels.1,335, implying an upside of 15.0% from current levels.1,335, implying an upside of 15.0% from current levels.1,335, implying an upside of 15.0% from current levels.
Global Indices
Indices Oct. Oct. Weekly YTD
22, 10 29, 10 (% chg)
BSE 30 20,166 20,032 (0.7) 14.7
NSE 6066 6018 (0.8) 15.7
Nasdaq 2,479 2,507 1.1 10.5
DOW 11,133 11,118 (0.1) 6.6
Nikkei 9,427 9,202 (2.4) (12.7)
HangSeng 23,518 23,096 (1.8) 5.6
Straits Times 3,174 3,143 (1.0) 8.5
Shanghai Composite 2,975 2,979 0.1 (9.1)
KLSE Composite 1,491 1,506 1.0 18.3
Jakarta Composite 3,598 3,635 1.0 43.4
KOSPI Composite 1,897 1,883 (0.8) 11.9
Indices Oct. Oct. Weekly YTD
22, 10 29, 10 (% chg)
BANKEX 14,116 14,016 (0.7) 39.7
BSE AUTO 9,729 9,910 1.9 33.3
BSE IT 6,133 5,993 (2.3) 15.6
BSE PSU 10,436 10,140 (2.8) 6.4
Sectoral Watch
(` crore)
As on Purchases Sales Net Activity
Oct 21 1,014 700 314
Oct 22 846 751 95
Oct 25 484 828 (344)
Oct 26 483 860 (376)
Oct 27 1,001 1,082 (80)
NetNetNetNetNet 3,8293,8293,8293,8293,829 4,2214,2214,2214,2214,221 (391)(391)(391)(391)(391)
Mutual Fund activity (Equity)
(` crore)
Cash Futures Net
As on (Equity) Activity
Oct 22 1,379 (242) 1,137
Oct 25 1,138 562 1,701
Oct 26 699 (988) (289)
Oct 27 98 (844) (746)
Oct 28 (558) (216) (774)
NetNetNetNetNet 2,7562,7562,7562,7562,756 (1,728)(1,728)(1,728)(1,728)(1,728) 1,0281,0281,0281,0281,028
FII activity

October 30, 2010
For Private Circulation Only | Angel Broking Ltd: BSE Sebi Regn No : INB 010996539 / CDSL Regn No: IN - DP - CDSL - 234 - 2004 / PMS Regn Code: PM/INP00000154 6 Angel Securities Ltd:BSE: INB010994639/INF010994639 NSE: INB230994635/INF230994635 Membership numbers: BSE 028/NSE:09946 2
FFFFFundamental Fundamental Fundamental Fundamental Fundamental Focus |ocus |ocus |ocus |ocus |
Amara Raja Batteries - Buy
Net sales up 8.7%, lower than expectations:Net sales up 8.7%, lower than expectations:Net sales up 8.7%, lower than expectations:Net sales up 8.7%, lower than expectations:Net sales up 8.7%, lower than expectations: For 2QFY2011,
ARBL reported 8.7% yoy growth in net sales to `393cr (`361cr),
which was below our expectation. Growth was aided by healthy
double-digit volume growth from the auto battery segment. In
the industrial battery segment, while the UPS segment recorded
significant growth, demand for telecom batteries remain
subdued, impacting the overall volume and realisation growth.
However, management is sanguine on the telecom side of its
business, as a large number of towers in the mobile telecom
network has been established in the last three-four years; and
going ahead, batteries used in these towers would be due for
replacement. Emerging opportunities in the solar segment and
increasing market share in the UPS segment would help the
division to further optimise its revenue stream.
EBITDEBITDEBITDEBITDEBITDA margins at 14.5%, down 909bp:A margins at 14.5%, down 909bp:A margins at 14.5%, down 909bp:A margins at 14.5%, down 909bp:A margins at 14.5%, down 909bp: During 2QFY2011,
ARBL witnessed a 909bp yoy decline in EBITDA margins, owing
to a substantial 777bp yoy increase in raw-material costs, which
accounted for around 63.7% of sales (55.9% in 2QFY2010).
Raw-material costs were impacted, to a certain extent, by the
increase in average lead prices, which were up 6.1% yoy to US
$2039/tonne. Margins were also down due to lower realisation
from the telecom battery segment. Thus, subdued realisation
from the segment affected operating margins, as industrial
batteries command higher margins for the company.
However, management believes current prices in the telecom
battery segment are unsustainable and expects to witness an
increase in the next few quarters, though the recent surge in
lead price will impact margins to a certain extent in the
short term.
Net profit down 33.8% yoy:Net profit down 33.8% yoy:Net profit down 33.8% yoy:Net profit down 33.8% yoy:Net profit down 33.8% yoy: ARBL reported a 33.8% yoy decline
in net profit to `31.6cr (`47.7cr) during the quarter. The decline
was because of lower realisation and subdued growth from the
telecom battery segment. However, lower interest cost and higher
other income restricted the fall in the bottom line
2QFY2011 Result Update
Research Analyst - Vaishali Jajoo/Yaresh Kothari
Price - `198
Target Price - `251
Source: Company, Angel Research
Performance Highlights
Source: Company, Angel Research; Price as on October 25, 2010
Key Financials
Net salesNet salesNet salesNet salesNet sales 1,3131,3131,3131,3131,313 1,4651,4651,4651,4651,465 1,7721,7721,7721,7721,772 2,0872,0872,0872,0872,087
% chg 21.2 11.6 20.9 17.8
Net profitNet profitNet profitNet profitNet profit 80.580.580.580.580.5 167.0167.0167.0167.0167.0 142.4142.4142.4142.4142.4 189.7189.7189.7189.7189.7
% chg (14.7) 107.5 (14.8) 33.3
EBITDA (%) 11.5 19.2 14.3 14.8
EPS (EPS (EPS (EPS (EPS (`````))))) 9.49.49.49.49.4 19.619.619.619.619.6 16.716.716.716.716.7 22.222.222.222.222.2
P/E (x) 21.0 10.1 11.9 8.9
P/BV (x) 4.2 3.1 2.5 2.0
RoE (%) 21.8 35.2 23.4 25.0
RoCE (%) 16.8 34.9 26.6 27.5
EV/Sales (x) 1.4 1.2 1.0 0.8
EV/EBITDA (x) 12.4 6.1 6.7 5.3
Y/E March (` cr) FY2009 FY2010 FY2011E FY2012E
Outlook and valuation
We estimate ARBL to post a ~19.3% CAGR in its top line over
FY2010-12E, largely aided by substantial growth in auto battery
volumes. However, net profit for the period is estimated to grow
lower at ~7% CAGR, largely due to lower realisation from the
telecom battery segment.
On the valuation front, ARBL is trading at 11.9x and 8.9x
FY2011E and FY2012E EPS, respectively. At present, ARBL is
trading at ~45% discount to Exide (adjusted for the insurance
business). Although ARBL has always traded at a discount to
Exide (due to Exide's leadership position, scale of operations,
superior margins and return ratios), ARBL is well placed to tap
the rising demand from the automobile and industrial segments
with its innovative products, increased capacity and widening
reach. The discount commanded by ARBL compared to Exide
would reduce with a) increasing scale of operations, b)
sustainable revenue and earnings visibility and c) improving
return ratios. WWWWWe maintain Buy on ARBL with a 12-month Te maintain Buy on ARBL with a 12-month Te maintain Buy on ARBL with a 12-month Te maintain Buy on ARBL with a 12-month Te maintain Buy on ARBL with a 12-month Targetargetargetargetarget
PPPPPrice ofrice ofrice ofrice ofrice of `````251, representing a ~27% potential upside.251, representing a ~27% potential upside.251, representing a ~27% potential upside.251, representing a ~27% potential upside.251, representing a ~27% potential upside. At our
target price, the stock will trade at 11.3x (35% discount to Exide's
multiple of 17.3x) FY2012E EPS of `22.2.
Y/E MarchY/E MarchY/E MarchY/E MarchY/E March 2QFY112QFY112QFY112QFY112QFY11 2QFY102QFY102QFY102QFY102QFY10 % chg% chg% chg% chg% chg 1QFY111QFY111QFY111QFY111QFY11 % chg% chg% chg% chg% chg
(((((` cr)cr)cr)cr)cr) (yoy)(yoy)(yoy)(yoy)(yoy) (qoq)(qoq)(qoq)(qoq)(qoq)
Net salesNet salesNet salesNet salesNet sales 392.5392.5392.5392.5392.5 361.2361.2361.2361.2361.2 8.78.78.78.78.7 446.7446.7446.7446.7446.7 (12.1)(12.1)(12.1)(12.1)(12.1)
EBITDA 56.8 85.1 (33.3) 62.0 (8.4)
EBITDA margin (%) 14.5 23.6(909)bp 13.9 59bp
Reported PReported PReported PReported PReported PAAAAATTTTT 31.631.631.631.631.6 47.747.747.747.747.7 (33.8)(33.8)(33.8)(33.8)(33.8) 35.735.735.735.735.7 (11.5)(11.5)(11.5)(11.5)(11.5)

October 30, 2010
Asian Paints - Buy
For 2QFY2011, Asian Paints (APL) posted weak set of numbers
and significantly below our estimates on both the revenue and
profitability front. Consolidated top-line grew by a mere 5%
yoy impacted by heavy monsoons, floods in the north and shift
in festival sales to 3QFY2011. Recurring earnings grew a muted
4.4% yoy owing to weak top-line growth and margin contraction.
We have marginally tweaked our estimates to discount the
disappointment in results. We re-iterate that the current quarter
results should be taken as an aberration and expect growth
momentum to pick in 2HFY2011.
Heavy monsoons/shift in festivities drag growth:Heavy monsoons/shift in festivities drag growth:Heavy monsoons/shift in festivities drag growth:Heavy monsoons/shift in festivities drag growth:Heavy monsoons/shift in festivities drag growth: APL reported
a weak 5% yoy growth in consolidated top-line to `1,811cr
due to heavy monsoons and shift in festival sales. We believe
APL recorded ~1-2% contraction in paint volumes, and growth
in top-line was largely driven by three rounds of recent price
hikes (though full benefits would be registered in 2HFY2011).
In terms of recurring earnings, APL reported dismal growth of
4.4% yoy to `215cr owing to weak top-line growth, margin
contraction and 42% rise in depreciation charges
(commencement of new plant). At the operating level, APL
registered a 42bp contraction resulting in a muted 2.7% yoy
growth in EBITDA to `332cr. However, surprisingly gross margins
expanded by 52bp yoy despite rising input costs on account of
full impact of ~7% weighted average price hikes.
Recurring earnings up 4%, reported declines:Recurring earnings up 4%, reported declines:Recurring earnings up 4%, reported declines:Recurring earnings up 4%, reported declines:Recurring earnings up 4%, reported declines: APL reported a
dismal growth of 4.4% yoy in recurring earnings to `215cr
(`206cr), despite the 273bp decline in the tax rate (partially
owing to higher contribution of international business) owing
to weak top-line growth, margin contraction and 42% rise in
depreciation charges (commencement of new plant). However,
on a reported basis, APL posted a decline of 20% yoy in earnings
to `215cr (`268cr) owing to the extraordinary gain of `62.7cr
in 2QFY2010 due to the partial stake sale in ICI.
Research Analyst - Anand Shah/Chitrangda Kapur/Sreekanth P.V.S
Price - `2,503
Target Price - `2,952
Key Financials (Consolidated)
Net SalesNet SalesNet SalesNet SalesNet Sales 5,4645,4645,4645,4645,464 6,6816,6816,6816,6816,681 7,7337,7337,7337,7337,733 9,2359,2359,2359,2359,235
% chg 24.0 22.3 15.8 19.4
Net PNet PNet PNet PNet Profit (Adj)rofit (Adj)rofit (Adj)rofit (Adj)rofit (Adj) 401.4401.4401.4401.4401.4 772.0772.0772.0772.0772.0 890.5890.5890.5890.5890.5 1,0881,0881,0881,0881,088.9
% chg (3.9) 92.3 15.3 22.3
EBITDA (%) 12.3 18.4 18.1 18.1
P/E (x) 59.8 31.1 27.0 22.0
P/BV (x) 20.0 14.0 10.7 8.3
RoE (%) 33.1 48.9 39.8 37.5
RoCE (%) 36.3 54.7 50.0 48.6
EV/Sales (x) 4.4 3.6 3.1 2.6
EV/EBITDA (x) 36.0 19.7 17.2 14.1
(((((` cr)cr)cr)cr)cr) 2QFY112QFY112QFY112QFY112QFY11 2QFY102QFY102QFY102QFY102QFY10 % yoy% yoy% yoy% yoy% yoy AngelAngelAngelAngelAngel %%%%%
Est.Est.Est.Est.Est. DiffDiffDiffDiffDiff
RevenueRevenueRevenueRevenueRevenue 1,810.81,810.81,810.81,810.81,810.8 1,723.91,723.91,723.91,723.91,723.9 5.05.05.05.05.0 1,982.11,982.11,982.11,982.11,982.1 (8.6)(8.6)(8.6)(8.6)(8.6)
EBITDA 331.5 322.8 2.7 368.7 (10.1)
OPM (%) 18.3 18.7 (42) 18.6 (29)
PPPPPAAAAATTTTT 214.7214.7214.7214.7214.7 205.7205.7205.7205.7205.7 4.44.44.44.44.4 241.2241.2241.2241.2241.2 (11.0)(11.0)(11.0)(11.0)(11.0)
OPM contracts despite gross margin expansion:OPM contracts despite gross margin expansion:OPM contracts despite gross margin expansion:OPM contracts despite gross margin expansion:OPM contracts despite gross margin expansion: At the
operating level, APL registered a 42bp contraction in OPM which
coupled with weak top-line growth resulted in a muted 2.7%
yoy growth in EBITDA to `332cr (`323cr). However, surprisingly
gross margins expanded by 52bp yoy despite rising input costs
on account of full impact of the ~7% weighted average price
hikes (taken in three rounds in May, July and August).
Nonetheless, higher staff costs (up 40bp yoy) and other expenses
(up 53bp yoy) dragged operating margins.
Outlook and Valuation
We re-iterate that the current quarter results should be taken as
an aberration and expect growth momentum to pick in
2HFY2011 driven by - 1) full quarter of festival sales, and 2)
higher value growth on account of price hikes (further price
hikes cannot be ruled out). At `2,503, the stock is trading at
22x FY2012E revised EPS of `113.5. WWWWWe maintain a Buy one maintain a Buy one maintain a Buy one maintain a Buy one maintain a Buy on
the stock, with a revised Tthe stock, with a revised Tthe stock, with a revised Tthe stock, with a revised Tthe stock, with a revised Target Parget Parget Parget Parget Price ofrice ofrice ofrice ofrice of `2,952 (2,952 (2,952 (2,952 (2,952 (`2,974) based2,974) based2,974) based2,974) based2,974) based
on a P/E multiple of 26x FY2012E earnings.on a P/E multiple of 26x FY2012E earnings.on a P/E multiple of 26x FY2012E earnings.on a P/E multiple of 26x FY2012E earnings.on a P/E multiple of 26x FY2012E earnings.

October 30, 2010
Dena Bank - Accumulate
For 2QFY2011, Dena Bank reported net profit growth of 28.9%
yoy, ahead of our estimates, on account of better-than-expected
operating performance. Healthy CASA accretion and
consequent NIM expansion were the key positives of the results.
Advances and deposits growth sluggish on a sequential basis:Advances and deposits growth sluggish on a sequential basis:Advances and deposits growth sluggish on a sequential basis:Advances and deposits growth sluggish on a sequential basis:Advances and deposits growth sluggish on a sequential basis:
In 2QFY2011, on a sequential basis advances de-grew by 4.4%
and deposits recorded a marginal growth of 0.4% compared
to industry growth of advances (2.0% qoq) and deposits growth
(3.4% qoq). On a yoy basis, advances growth (21.0%) and
deposits growth (18.2%) was in line with industry growth. On
account of growth in deposits compared to de-growth in
advances on a sequential basis, credit-to-deposit (CD) ratio
fell to 67.7% in 2QFY2011 from 71.1% in 1QFY2011. Growth
in advances was driven by agricultural loans (25.5% yoy) and
retail loans (18.0% yoy).
On the deposits side, CASA deposits registered a strong 29.9%
yoy and 10.0% qoq growth leading to a substantial ~340bp
qoq improvement in CASA ratio to 39.1% from 35.7% as of
1QFY2011.
On the back of improvement in CASA ratio, re-pricing of bulk
deposits and higher focus on retail and SME lending, reported
NIM improved by a substantial 70bp qoq to 3.52% in
2QFY2011 from 2.82% in 1QFY2011. Consequently, the bank's
NII grew by a robust 93.5% yoy and 29.1% qoq to `465cr
despite a ~230bp sequential decline in CD ratio.
Management expects to sustain NIM above 3%+ levels for
FY2011 on the back of higher focus on CASA deposits accretion
and retail and SME lending.
LLLLLower treasuryower treasuryower treasuryower treasuryower treasury, but healthy core fee and recoveries:, but healthy core fee and recoveries:, but healthy core fee and recoveries:, but healthy core fee and recoveries:, but healthy core fee and recoveries: Core fee
income and recoveries from written-off accounts grew at healthy
rates of 34.9% yoy and 40.9% yoy, respectively. However, total
non-interest income declined by 5.1% yoy to `119cr because
of minor losses in treasury compared to profit of `38cr in
2QFY2010.
Research Analyst - Vaibhav Agrawal/Amit Rane/Shrinivas Bhutda
Price - `138
Target Price - `150
Key Financials
NIINIINIINIINII 1,0641,0641,0641,0641,064 1,1001,1001,1001,1001,100 1,6861,6861,6861,6861,686 1,7451,7451,7451,7451,745
% chg 23.9 3.3 53.3 3.5
Net PNet PNet PNet PNet Profitrofitrofitrofitrofit 423423423423423 511511511511511 598598598598598 610610610610610
% chg 17.5 21.0 16.9 2.1
NIM (%) 2.5 2.1 2.8 2.5
P/E (x) 9.3 7.7 6.6 6.5
P/ABV (x) 2.2 1.9 1.4 1.2
RoA (%) 1.0 1.0 1.0 0.8
RoE (%) 24.0 23.5 22.8 19.8
PPPPParticularsarticularsarticularsarticularsarticulars 2QFY112QFY112QFY112QFY112QFY11 1QFY111QFY111QFY111QFY111QFY11 % chg% chg% chg% chg% chg 2QFY102QFY102QFY102QFY102QFY10 % chg% chg% chg% chg% chg
(((((` cr)cr)cr)cr)cr) (qoq)(qoq)(qoq)(qoq)(qoq) (yoy)(yoy)(yoy)(yoy)(yoy)
NIINIINIINIINII 465465465465465 360360360360360 29.129.129.129.129.1 240240240240240 93.593.593.593.593.5
Pre-prov. profit 326 239 36.5 161 101.7
PPPPPAAAAATTTTT 161161161161161 139139139139139 15.715.715.715.715.7 125125125125125 28.928.928.928.928.9
Slippages come down:Slippages come down:Slippages come down:Slippages come down:Slippages come down: The bank's absolute gross NPAs
increased marginally by 3.1% sequentially to `826cr in
2QFY2011. The annualised gross slippage ratio came down
to 1.6% during the quarter from 2.7% in 1QFY2011 and from
2.2% in FY2010. Fresh slippages amounted to `143cr.
Recoveries were up from `37cr in 1QFY2011 to `53cr in
2QFY2011.Consequently, gross NPA ratio deteriorated to 2.3%
(from 2.1% in 1QFY2011). On account of aggressive
provisioning charges, net NPAs reduced by 4.2% sequentially
to `538cr. Net NPA ratio was stable sequentially at 1.5%. The
NPA provision coverage ratio including technical write-offs
improved to 75.4%. Cumulative restructured advances stood
at `1,306cr .
Dena Bank, with a strong CASA ratio of 39.1%, is better placed
than peers to protect its NIM in a rising interest rate environment.
After the proposed capital infusion, the bank's tier-I ratio will
improve to 9.1% by end-FY2011 from 8.2% in FY2010, and
enable it to maintain its CAR well above 12% levels until FY2012.
At the CMP, the stock is trading at 6.5x FY2012E EPS of `21.3
and 1.2x FY2012E ABV of `115.1. WWWWWe maintain an Accumulatee maintain an Accumulatee maintain an Accumulatee maintain an Accumulatee maintain an Accumulate
on the stock with a Ton the stock with a Ton the stock with a Ton the stock with a Ton the stock with a Target Parget Parget Parget Parget Price ofrice ofrice ofrice ofrice of `````150.150.150.150.150. We have assigned a
target multiple of 1.3x FY2012E ABV, translating into 8.7%
upside from current levels.

October 30, 2010
Finolex Cables - Buy
SegmentSegmentSegmentSegmentSegment-wise performance:-wise performance:-wise performance:-wise performance:-wise performance: During the quarter, the electrical
cables segment showed strong growth of 38.8% yoy to `345cr
(`249cr). The company witnessed robust volume growth of
23.0% in the segment, while realisations increased by ~12.8%.
The segment reported EBIT of `45.5cr, implying EBIT margin of
13.2%. Margin for the segment improved by 96bp sequentially,
but fell 818bp yoy.
The communication cables segment reported a 13.0% yoy
decline in sales to `46cr (`53cr). Sales declined despite a 17.0%
increase in volumes. EBIT margin for the segment declined by
314bp yoy to 17.4%.
The copper rods segment's sales increased to `315cr (`248cr),
an increase of 27.1% yoy. However, the company had to absorb
sales tax outgo of `4.2cr due to timing difference in
implementation of the Sales Tax Exemption Scheme in the
segment, which adversely affected the company's performance.
Consequently, the segment registered EBIT of (`6cr), reporting
an EBIT margin of (2.0%).
The others segment reported 374.4% increase in sales to `49cr
(`10cr). However, the segment registered a loss of `0.8cr in
2QFY2011, vis-à-vis a loss of `1.1cr in 2QFY2010.
Sales growth remains strong on the back of strong volumes:Sales growth remains strong on the back of strong volumes:Sales growth remains strong on the back of strong volumes:Sales growth remains strong on the back of strong volumes:Sales growth remains strong on the back of strong volumes:
Finolex has registered strong sales growth over the past eight
quarters, increasing from `238cr in 3QFY2009 to `491cr in
2QFY2011. This has come on the back of strong volume growth.
Going forward, we expect the trend to continue, with robust
demand expected from the user industries, besides contribution
from the HT plant kicking in.
Margins under pressure, but stabilising:Margins under pressure, but stabilising:Margins under pressure, but stabilising:Margins under pressure, but stabilising:Margins under pressure, but stabilising: In 2QFY2011, margins
expanded to 8.5%. Going ahead, we expect margins to expand
further and the company to post OPM of 9.3% in FY2011E and
9.9% in FY2012E.
Research Analyst - Jai Sharda
Price - `62
Target Price - `82
Key Financials
% chg (3.1) 20.7 26.6 19.9
Net profitNet profitNet profitNet profitNet profit (35)(35)(35)(35)(35) 5858585858 8080808080 13131313139
% chg - - 39.6 72.2
EBITDA (%) 7.6 12.2 9.3 9.9
EPS (EPS (EPS (EPS (EPS (`````))))) (2.3)(2.3)(2.3)(2.3)(2.3) 3.83.83.83.83.8 5.35.35.35.35.3 9.19.19.19.19.1
P/E (x) - 16.4 11.7 6.8
P/BV (x) 1.6 1.5 1.3 1.2
RoE (%) - 9.3 12.0 18.3
RoCE (%) 6.8 17.1 14.5 17.4
EV/Sales (x) 0.7 0.6 0.5 0.4
EV/EBITDA (x) 8.8 4.6 5.1 4.1
PPPPPAAAAAT set to increase going ahead:T set to increase going ahead:T set to increase going ahead:T set to increase going ahead:T set to increase going ahead: The company's PAT has
remained erratic over the past few quarters due to fluctuating
OPM and forex losses. However, going ahead, as forex losses
decline and OPM stabilises, we expect PAT to increase from
current levels.
We maintain our positive outlook on Finolex Cables, given its
strong growth prospects, as demand from user industries
strengthens. We expect sales to increase at a 23.2% CAGR over
FY2010-12E. We expect OPM to increase from the current levels
of 8.5%, as strong underlying demand enables the company
to pass on the raw-material price increase. However, given that
the company has posted lower-than-expected OPM in the first
two quarters of FY2011, we have revised our OPM estimates
downwards for FY2011E and FY2012E to 9.3% and 9.9% from
10.0% and 10.2% currently. Consequently, our PAT estimate
for FY2011E has been reduced to `80cr (`90cr) and that for
FY2012E has been reduced to `139cr (`143cr). At current levels,
the stock is trading at 11.7x and 6.8x its FY2011E and FY2012E
P/E, respectively. WWWWWe maintain Buy on Fe maintain Buy on Fe maintain Buy on Fe maintain Buy on Fe maintain Buy on Finolex with a revisedinolex with a revisedinolex with a revisedinolex with a revisedinolex with a revised
TTTTTarget Parget Parget Parget Parget Price ofrice ofrice ofrice ofrice of `````82 (82 (82 (82 (82 (`````85).85).85).85).85).
Net salesNet salesNet salesNet salesNet sales 490.6490.6490.6490.6490.6 493.1493.1493.1493.1493.1 (0.5)(0.5)(0.5)(0.5)(0.5) 404.8404.8404.8404.8404.8 21.221.221.221.221.2
EBITDA 41.5 39.6 4.7 66.9 (38.0)
EBITDA % 8.5 8.0 - 16.5 -
PPPPPAAAAATTTTT 18.918.918.918.918.9 23.023.023.023.023.0 (17.7)(17.7)(17.7)(17.7)(17.7) 28.828.828.828.828.8 (34.2)(34.2)(34.2)(34.2)(34.2)

October 30, 2010
HT Media - Accumulate
We have revised our estimates upwards: 1) revised revenue
estimates for FY2011 by 1.3% to factor in higher revenue traction
from the Burda JV which is offset by lower-than-expected
circulation revenues reported by the company this quarter,
2) revised consolidated earnings to factor in the company's focus
on cost rationalization, incremental newsprint cost due to the
Burda JV (negative impact, recorded newsprint cost of ~`24cr),
high other income and lower interest expense.
TTTTTopopopopop-line growth strong at 23% led by ~20%+ growth in both-line growth strong at 23% led by ~20%+ growth in both-line growth strong at 23% led by ~20%+ growth in both-line growth strong at 23% led by ~20%+ growth in both-line growth strong at 23% led by ~20%+ growth in both
English and Hindi:English and Hindi:English and Hindi:English and Hindi:English and Hindi: HT Media posted a strong top-line growth
of 23% yoy to `431cr (`350cr) driven by 23.6% yoy growth in
English and 22.5% yoy growth in Hindi. Circulation revenue
recorded a decline of 12.7% yoy/10.7% qoq to `41.8cr. Both
English print and Hindustan reported a yoy decline of 25.7%
and 5.3% respectively, in circulation. While Hindustan's
circulation revenue decline maybe attributed to increase in
competitive intensity in its core Bihar/Jharkhand market leading
to lower realisation, the English print circulation suffered on
account of higher discounts/free trial subscription copies
distributed in the markets of Mumbai, Punjab, UP and some
parts in Delhi. As part of the company strategy, management
has indicated that they would strive to garner higher advertising
revenue going forward by focusing on attaining higher
readership irrespective of the circulation.
Bumper earnings despite jump in tax rate, aided by otherBumper earnings despite jump in tax rate, aided by otherBumper earnings despite jump in tax rate, aided by otherBumper earnings despite jump in tax rate, aided by otherBumper earnings despite jump in tax rate, aided by other
income:income:income:income:income: In terms of earnings, HT Media posted a robust growth
of 77.7% yoy to `42cr (`24cr) on a recurring basis and 60.9%
yoy growth to `39cr (`24cr) on a reported basis, despite the
spike in the tax rate (up 1,260bp yoy) and depreciation cost
(up 13.1% yoy), aided by significant 520% yoy increase in other
income (spike on account of higher interest and dividend income
and a profit of ~`2.5cr booked through divestment of private
treaties), 26% yoy decline in interest expense and margin
Research Analyst - Anand Shah/Chitrangda Kapur/Sreekanth P.V.S
Price - `165
Target Price - `186
% chg 11.9 4.9 24.8 14.1
Net PNet PNet PNet PNet Profit (Adj)rofit (Adj)rofit (Adj)rofit (Adj)rofit (Adj) 20.020.020.020.020.0 143.5143.5143.5143.5143.5 191.1191.1191.1191.1191.1 218.8218.8218.8218.8218.8
% chg (80.3) 617.3 33.1 14.5
EBITDA margin (%) 6.5 18.1 19.9 19.7
P/E (x) 193.7 27.1 20.4 17.8
P/BV (x) 4.6 4.0 3.4 2.9
RoE (%) 2.4 15.8 18.0 17.4
RoCE (%) 1.6 14.5 19.6 20.4
EV/Sales (x) 3.1 2.9 2.3 1.9
EV/EBITDA (x) 47.7 16.0 11.5 9.7
(((((` cr)cr)cr)cr)cr) 2QFY112QFY112QFY112QFY112QFY11 2QFY102QFY102QFY102QFY102QFY10 % chg% chg% chg% chg% chg 1QFY111QFY111QFY111QFY111QFY11 % chg% chg% chg% chg% chg
(yoy)(yoy)(yoy)(yoy)(yoy) (qoq)(qoq)(qoq)(qoq)(qoq)
RevenueRevenueRevenueRevenueRevenue 431.0431.0431.0431.0431.0 349.6349.6349.6349.6349.6 23.323.323.323.323.3 402.8402.8402.8402.8402.8 7.07.07.07.07.0
EBITDA 64.5 50.8 27.1 78.6 (17.9)
OPM (%) 15.0 14.5 45bp 19.5 (453bp)
PPPPPAAAAATTTTT 42.142.142.142.142.1 23.723.723.723.723.7 77.777.777.777.777.7 40.240.240.240.240.2 4.74.74.74.74.7
expansion (modest expansion of 45bp yoy, aided by various
cost rationalisation strategies undertaken by the company, offset
by significant gross margin contraction on account of hardening
newsprint cost and operating loss for Burda JV). Moreover, the
losses in internet business have reduced (reported an operating
loss of `8.5cr in 2QFY2011 compared to `9.5cr in 2QFY2010),
while radio has reported an operating profit of `1.6cr.
HTML continued to show resilience in its new businesses this
quarter. Moreover, aggressive cost rationalisation in the radio
business (continues to be EBITDA positive and achieved EBIT
breakeven despite additional cost of ~`30-40lakh incurred
towards their new property, Ramayana), trickle-down effect of
higher revenue traction and benign newsprint price environment
(factoring in ~10% rise during FY2010-12) will help HTML post
higher margins (~20%) during FY2011/12. At the CMP of
`165, HTML is trading at 17.8x FY2012E revised consolidated
EPS of `9.3. Owing to significant improvement in profitability
of its growing businesses and incremental revenue traction on
the back of improvement in advertising spends across sectors,
we recommend Accumulate on the stock with a Twe recommend Accumulate on the stock with a Twe recommend Accumulate on the stock with a Twe recommend Accumulate on the stock with a Twe recommend Accumulate on the stock with a Target Parget Parget Parget Parget Price ofrice ofrice ofrice ofrice of
`186 based on 20x FY2012E earnings.186 based on 20x FY2012E earnings.186 based on 20x FY2012E earnings.186 based on 20x FY2012E earnings.186 based on 20x FY2012E earnings.

October 30, 2010
ICICI Bank - Buy
ICICI Bank's net profit grew a healthy 18.9% yoy, which was
above our estimates mainly on account of higher NIMs and
lower effective tax rate. The key positive of the results was
continuation of declining trend in net additions in gross NPAs
from retail loans (almost nil) for the sixth consecutive quarter
and a substantial reduction in NPA provisioning burden.
Advances and deposits growth picking up:Advances and deposits growth picking up:Advances and deposits growth picking up:Advances and deposits growth picking up:Advances and deposits growth picking up: Advances grew
5.3% qoq and 1.8% yoy to `1,94,201cr, while total deposits
grew 11.0% qoq and 12.8% yoy to `2,23,094cr during
2QFY2011. Excluding the advances and deposit of Bank of
Rajasthan (BoR) as of merger date, advances grew 1.8% qoq
but declined 1.7% yoy, while deposits increased 4.3% qoq and
6.0% yoy. The growth in advances was driven by a 26.4% qoq
and 35.7% yoy growth in corporate lending. On the positive
side, the decline in retail segment which accounts for 39% of
the advances book has been stemmed sequentially (growing
by 2.8% qoq) though it de-grew by 9.6% yoy. Retail segment's
contribution to the advances book has come down from 45%
as of 2QFY2010 to 39% as of 2QFY2011, while contribution
of the corporate segment has risen from 18% to 24%.
On the deposits side, CASA deposits showed strong traction,
growing 15.9% qoq and 34.5% yoy to `98,105cr. Even
excluding CASA deposits of BoR as of merger date, the CASA
deposits witnessed impressive growth of 10.4% qoq and 28.1%
yoy. Consequently, the CASA ratio further improved to 44.0%
from 42.1% in 1QFY2011 and 36.9% in 2QFY2010. The
reported NIM improved by 10bp qoq and yoy to 2.6%.
Asset quality improving; further lower provisioning costAsset quality improving; further lower provisioning costAsset quality improving; further lower provisioning costAsset quality improving; further lower provisioning costAsset quality improving; further lower provisioning cost
expectedexpectedexpectedexpectedexpected: The bank's asset quality showed further improvement,
with a sharp declining trend in net addition to gross NPAs from
retail loans was almost nil during 2QFY2011 from ~`200cr in
1QFY2011. Absolute gross NPAs increased 3.2% sequentially
to `10,141cr primarily due to ~`400cr gross NPAs of BoR. Net
addition to gross NPAs in both retail and corporate segments
Research Analyst - Vaibhav Agrawal/Amit Rane/Shrinivas Bhutda
Price - `1,162
Key Financials
NIINIINIINIINII 9,0929,0929,0929,0929,092 8,1148,1148,1148,1148,114 8,9188,9188,9188,9188,918 11,16911,16911,16911,16911,169
% chg 10.9 (10.8) 9.9 25.2
Net PNet PNet PNet PNet Profitrofitrofitrofitrofit 3,4233,4233,4233,4233,423 4,0254,0254,0254,0254,025 5,1335,1335,1335,1335,133 6,9846,9846,9846,9846,984
% chg (17.7) 17.6 27.5 36.0
NIM (%) 2.6 2.4 2.5 2.6
P/E (x) 37.8 32.2 26.0 19.1
P/ABV (x) 2.7 2.6 2.5 2.3
RoA (%) 0.9 1.0 1.2 1.4
RoE (%) 9.2 9.7 11.9 15.6
PPPPParticularsarticularsarticularsarticularsarticulars 2QFY112QFY112QFY112QFY112QFY11 1QFY111QFY111QFY111QFY111QFY11 % chg% chg% chg% chg% chg 2QFY102QFY102QFY102QFY102QFY10 % chg% chg% chg% chg% chg
NIINIINIINIINII 2,2042,2042,2042,2042,204 1,9911,9911,9911,9911,991 10.710.710.710.710.7 2,0362,0362,0362,0362,036 8.38.38.38.38.3
Pre-prov. profit 2,212 2,188 1.1 2,435 (9.2)
PPPPPAAAAATTTTT 1,2361,2361,2361,2361,236 1,0261,0261,0261,0261,026 20.520.520.520.520.5 1,0401,0401,0401,0401,040 18.918.918.918.918.9
was close to nil. The bank's gross NPA ratio improved from
5.1% as of 1QFY2011 to 5.0% as of 2QFY2011. The provision
coverage ratio (as per RBI guidelines) improved to 69.0% in
2QFY2011 from 64.8% in 1QFY2011. The bank's restructured
loans continued their sharp fall, declining by 30.9% sequentially
to `2,578cr from `3,737cr in 1QFY2011.
Strong capital adequacy:Strong capital adequacy:Strong capital adequacy:Strong capital adequacy:Strong capital adequacy: Driven by its large net worth, capital
adequacy continued to be strong at 20.2%, comprising
substantial tier-1 component of 13.8%. We believe that with
this the bank is well positioned for the imminent improvement
in credit growth, as the GDP outlook continues to improve.
The bank's strategies of the last eighteen months has yielded a
substantial improvement in the ratio of branches to net worth
that is expected to ensure a far more favourable deposit mix
going forward. Moreover, a lower risk balance sheet is expected
to drive down NPA provisioning costs that we believe will enable
RoEof15.6%byFY2012E(withfurtherupsidefromfinancialleverage).
At the CMP, the bank's core banking business is trading at 2.4x
FY2012E ABV of `372.8 (including subsidiaries, the stock is
trading at 2.3x FY2012E ABV of `508). We value the bank's
subsidiaries at `254/share and the core bank at `1,081/share
(2.9x FY2012E ABV). WWWWWe maintain a Buy on the stock, with ae maintain a Buy on the stock, with ae maintain a Buy on the stock, with ae maintain a Buy on the stock, with ae maintain a Buy on the stock, with a
TTTTTarget Parget Parget Parget Parget Price ofrice ofrice ofrice ofrice of `1,335, implying an upside of 15.0% from1,335, implying an upside of 15.0% from1,335, implying an upside of 15.0% from1,335, implying an upside of 15.0% from1,335, implying an upside of 15.0% from
current levels.current levels.current levels.current levels.current levels.

October 30, 2010
JSW Steel - Accumulate
JSW Steel's 2QFY2011 standalone net revenue stood at
`5,713cr, above our estimates. Adj. net profit at `340cr was
also above our estimates of `284cr. The deviation was largely
due to higher sales volume reported by the company.
Margin hit by higher rawMargin hit by higher rawMargin hit by higher rawMargin hit by higher rawMargin hit by higher raw-material cost:-material cost:-material cost:-material cost:-material cost: Consolidated net
revenue grew by 26.5% yoy to `5,908cr, aided by higher sales
volume and improved product mix. Sales volume grew by 8.9%
yoy and 32.9% qoq and semis as a percentage of total sales
declined to 5.5% as compared to 27.9% in 2QFY2010.
Realisations also increased by 16.8% yoy to `36,089/tonne,
down 6.7% qoq. On account of higher raw-material cost,
EBITDA margin contracted by 617bp yoy to 17.3%.
Consequently, EBITDA declined by 6.7% yoy to `1,023cr. While
depreciation was higher by 16.5% yoy to `379cr, interest
expenses declined by 13.4% yoy to `261cr as the company
prepaid debt of `2,330cr. Moreover, other income included a
translation gain of `157cr on foreign exchange. Hence, net
profit increased by 15.6% yoy to `373cr.
Key analyst meet takeaways
Management indicated that the company currently has no
plans to acquire stake in JFE Steel.
The board has approved to issue a) 3mn GDRs and 1mn
shares to JFE Steel and b) 2mn shares to JFE Steel on conversion
of outstanding FCCBs, which could result in potential equity
infusion of `900cr over the next 21 months.
In addition, conversion of promoters' warrants could result in
additional cash inflow of `1,588cr to the company.
Management said that it has restarted the blast furnace at
Salem, as it expects demand for long products to improve in
the coming quarters. This will result in additional sales volume
of 0.1mn tonnes.
The commissioning of the 300MW power plant is likely to
lower power cost going ahead.
Research Analyst - Paresh Jain/Pooja Jain
Price - `1,225
(((((` cr)cr)cr)cr)cr) 2QFY112QFY112QFY112QFY112QFY11 2QFY102QFY102QFY102QFY102QFY10 % chg% chg% chg% chg% chg 2QFY112QFY112QFY112QFY112QFY11 2QFY102QFY102QFY102QFY102QFY10 % chg% chg% chg% chg% chg
(S)(S)(S)(S)(S) (S)(S)(S)(S)(S) (yoy)(yoy)(yoy)(yoy)(yoy) (C)(C)(C)(C)(C) (C)(C)(C)(C)(C) (yoy)(yoy)(yoy)(yoy)(yoy)
Net revenueNet revenueNet revenueNet revenueNet revenue 5,7135,7135,7135,7135,713 4,4944,4944,4944,4944,494 27.127.127.127.127.1 5,9085,9085,9085,9085,908 4,6694,6694,6694,6694,669 26.526.526.526.526.5
EBITDA 992 1,188 (16.5) 1,023 1,096 (6.7)
Margin (%) 17.4 26.4 (907bp) 17.3 23.5 (617bp)
Rep. PRep. PRep. PRep. PRep. PAAAAATTTTT 445445445445445 452452452452452 (1.4)(1.4)(1.4)(1.4)(1.4) 373373373373373 323323323323323 15.615.615.615.615.6
During the quarter, plate sales volume declined by 40%
yoy to 23,040 tonnes and pipe sales volume was down by 33%
yoy to 11,970 tonnes. The company's US subsidiary reported
EBITDA of US $0.85mn in 2QFY2011 as against a loss of US
$21mn in 2QFY2010.
The company has filed a petition in response to the Supreme
Court's decision in September 2010, where the allocation of
Hadimpade iron ore mine to JSW Steel was rejected and the
Karnataka government was asked to review all the applications.
The company plans to set up a 4.5mn-tonne greenfield
steel plant in West Bengal at an estimated cost of `16,000cr.
The proposed project is expected to be funded through a D/E
ratio of 2:1and is expected to be commissioned by March 2014.
We believe JSW Steel is well placed to capitalise on strong
domestic demand on the back of its expanded capacity,
improving product mix, commissioning of beneficiation plant
to lower iron ore cost and recovery in its US operations. At the
CMP, the stock is trading at 8.7x FY2011E and 6.0x FY2012E
EV/EBITDA. WWWWWe recommend Accumulate with a revised Te recommend Accumulate with a revised Te recommend Accumulate with a revised Te recommend Accumulate with a revised Te recommend Accumulate with a revised Targetargetargetargetarget
PPPPPrice ofrice ofrice ofrice ofrice of `````1,310 (earlier1,310 (earlier1,310 (earlier1,310 (earlier1,310 (earlier `````1,344), valuing the stock at 6.5x1,344), valuing the stock at 6.5x1,344), valuing the stock at 6.5x1,344), valuing the stock at 6.5x1,344), valuing the stock at 6.5x
FY2012E EV/EBITDFY2012E EV/EBITDFY2012E EV/EBITDFY2012E EV/EBITDFY2012E EV/EBITDAAAAA.....
% chg 28.7 19.0 18.3 31.4
Adj. net profitAdj. net profitAdj. net profitAdj. net profitAdj. net profit 804804804804804 1,3211,3211,3211,3211,321 1,4541,4541,4541,4541,454 2,5172,5172,5172,5172,517
% chg 5.1 7.0 6.5 8.6
FDEPS (FDEPS (FDEPS (FDEPS (FDEPS (`````))))) 38.238.238.238.238.2 63.863.863.863.863.8 55.655.655.655.655.6 97.297.297.297.297.2
EBITDA margin (%) 18.8 21.5 21.9 23.3
P/E (x) 32.1 19.2 22.0 12.6
P/BV (x) 3.1 2.6 1.6 1.5
RoE (%) 10.7 16.1 10.4 12.5
RoCE (%) 8.6 10.7 10.3 12.6
EV/Sales (x) 2.5 2.1 1.9 1.4
EV/EBITDA (x) 13.1 9.5 8.7 6.0

October 30, 2010
Lakshmi Machine Works - Accumulate
For 2QFY2011, Lakshmi Machine Works (LMW) posted strong
top-line growth of 59.8% yoy to `429cr. This was slightly below
our estimate of `450cr. OPM increased to a strong 14.9%, but
was slightly below our estimate. The company reported high
other income of `29cr. Consequently, PAT came in at `46cr,
2% below our estimate of `47cr. We remain positive on the
company's business outlook given its strong order book position
of `3,600cr and the robust demand in the textile industry. Hence,
we maintain an Accumulate on the stock.
Strong topStrong topStrong topStrong topStrong top-line growth; order inflow increases:-line growth; order inflow increases:-line growth; order inflow increases:-line growth; order inflow increases:-line growth; order inflow increases: LMW reported
strong sales growth of 59.8% yoy and 28.5% qoq, as demand
from the textile industry players surged during the quarter. This
was also reflected in the company's strong order book of
`3,600cr. Order inflow for the quarter stood at over `800cr.
SegmentSegmentSegmentSegmentSegment-wise performance:-wise performance:-wise performance:-wise performance:-wise performance:The company's textile machinery
division sales grew 61.4% yoy during the quarter to `385cr
(`238cr). The division reported EBIT margin of 13.5% during
the quarter compared to 15.3% in 2QFY2010. The other
divisions recorded sales growth of 45.4% yoy to `60cr (`41cr).
EBIT of the other divisions stood at `3.1cr.
TTTTTopopopopop-line continues increasing trend:-line continues increasing trend:-line continues increasing trend:-line continues increasing trend:-line continues increasing trend: For 2QFY2011, LMW
continued its increasing trend in top-line growth, after having
taken a hit during the economic crisis. Quarterly sales increased
from `181cr in 4QFY2009 to `429cr in 2QFY2011, as the
company has been witnessing a steady improvement in its
business. We expect this trend to continue going ahead as well,
as demand from the textile players continues to remain strong.
Margins remain strong at 14.9%:Margins remain strong at 14.9%:Margins remain strong at 14.9%:Margins remain strong at 14.9%:Margins remain strong at 14.9%: The company reported strong
OPM of 14.9% for the quarter, 167bp above 1QFY2011. The
company has been reporting robust margins over recent
quarters owing to improvement in business.
Research Analyst - Jai Sharda
Price - `2,699
Net SalesNet SalesNet SalesNet SalesNet Sales 429.3429.3429.3429.3429.3 334.1334.1334.1334.1334.1 28.528.528.528.528.5 268.6268.6268.6268.6268.6 59.859.859.859.859.8
EBITDA 64.0 44.2 44.7 46.4 38.0
EBITDA margin (%) 14.9 13.2 - 17.3 -
PPPPPAAAAATTTTT 45.945.945.945.945.9 30.130.130.130.130.1 52.452.452.452.452.4 32.432.432.432.432.4 41.741.741.741.741.7
% chg (39.3) (15.5) 66.5 32.1
% chg (55.9) (6.6) 58.3 45.5
EBITDA (%) 13.8 14.2 14.3 14.8
P/E (x) 31.2 33.4 21.1 14.5
P/BV (x) 4.0 3.6 3.2 2.8
RoE (%) 13.4 11.3 16.2 20.5
RoCE (%) 8.0 7.0 17.0 23.2
EV/Sales (x) 2.0 2.3 1.3 0.9
EV/EBITDA (x) 14.6 16.2 9.4 6.2
PPPPPAAAAAT increases to Rs46cr:T increases to Rs46cr:T increases to Rs46cr:T increases to Rs46cr:T increases to Rs46cr: PAT increased 41.7% yoy in the quarter
to `46cr after remaining steady at nearly `30cr in earlier few
quarters. Going ahead, we expect profit to further increase, as
the underlying business scenario continues to improve.
We are positive on the company's business prospects given the
strong demand from the user industry of textiles. A number of
textile players are operating at high utilisation levels of 90-95%
and to increase production further would have to increase
capacity. This augurs well for LMW, as it is the largest textile
machinery player in India. Our view is backed by the company's
large order book of `3,600cr. Thus, on the back of positive
business outlook and strong order book position, we expect
sales to increase at a CAGR of 48.3% over FY2010-12 to
`2,487cr. We expect PAT to clock CAGR of 51.8% to `230cr
over the period.
The stock is currently trading at 21.1x and 14.5x FY2011E and
FY2012E EPS. Owing to strong order book, robust business
outlook and increased liquidity with the textile spinning players,
we have upgraded our target P/E multiple of the company from
15.0x to 16.0x. WWWWWe maintain an Accumulate on the stock,e maintain an Accumulate on the stock,e maintain an Accumulate on the stock,e maintain an Accumulate on the stock,e maintain an Accumulate on the stock,
with a revised Twith a revised Twith a revised Twith a revised Twith a revised Target Parget Parget Parget Parget Price ofrice ofrice ofrice ofrice of `2,977 (2,977 (2,977 (2,977 (2,977 (`2,819).2,819).2,819).2,819).2,819).

October 30, 2010
Madras Cements - Buy
For 2QFY2011, Madras Cements (MAC) posted a 20.4% yoy
decline in its top line to `650cr, which was below our estimates
of 692cr. The lacklustre performance was primarily because
of a 22.7% yoy decline in the cement segment's revenue to
`576cr. The windmill division, reported a flat performance on
the top-line front and reported a revenue of ` 66.5cr. Going
ahead, we expect the offtake to improve in the southern region,
with cessation of monsoon and improvement in demand from
the housing and infrastructure segments in the southern region.
Realisation is also set to improve post the recent price hikes
carried out in the region.
OPM at 17.7%, down 2,390bp yoy:OPM at 17.7%, down 2,390bp yoy:OPM at 17.7%, down 2,390bp yoy:OPM at 17.7%, down 2,390bp yoy:OPM at 17.7%, down 2,390bp yoy: The company's top-line
declined by 20.4% yoy as the cement segment, which derives
bulk of its revenue from the southern region, suffered due to
low offtake and poor realisation in the region. While the
company's cement despatches were down by 6% yoy to 1.95mn
tonnes, realisation fell by a steep 16.8% yoy to `2,952/tonne.
OPM plunged by a huge 2,390bp yoy to 17.7%, primarily due
to fall in cement realisations and a 12.4% yoy increase in power
and fuel costs to `172cr. The wind-mill division reported an
EBIT of `50.4cr, which enabled the company to arrest the fall
in operating profit to an extent.The bottom line fell by 81.6%
yoy to `31cr, in line with our estimates.
Operational performance:Operational performance:Operational performance:Operational performance:Operational performance: During the quarter, MAC's per tonne
cement realisations declined by 16.8% yoy to `2,952. The
company's operating profit per tonne of cement stood at `291,
down 78.4% yoy. MAC's incurred net loss per tonne stood
at `21.
Major portion of the revenue derived from TMajor portion of the revenue derived from TMajor portion of the revenue derived from TMajor portion of the revenue derived from TMajor portion of the revenue derived from Tamil Nadu:amil Nadu:amil Nadu:amil Nadu:amil Nadu: MAC
derives ~50% of its cement revenue from Tamil Nadu and only
19% from Andhra Pradesh, which is the worst affected region
in terms of demand slowdown and price correction. Thus, the
company is better placed as compared to players with major
Research Analyst - Rupesh Sankhe/V Srinivasan
Price - `113
Target Price - `141
Net revenueNet revenueNet revenueNet revenueNet revenue 650650650650650 700700700700700 (7.2)(7.2)(7.2)(7.2)(7.2) 817817817817817 (20.4)(20.4)(20.4)(20.4)(20.4)
Operating profit 115 196 (41.3) 340 (66.2)
OPM (%) 17.7 27.9 (1,026bp) 41.6(2,390bp)
Net profitNet profitNet profitNet profitNet profit 3131313131 7373737373 (57.1)(57.1)(57.1)(57.1)(57.1) 169169169169169 (81.6)(81.6)(81.6)(81.6)(81.6)
Key Financials
% chg 25.8 10.7 (1.1) 10.5
Net profitNet profitNet profitNet profitNet profit 364364364364364 354354354354354 180180180180180 202202202202202
% chg (11.0) (2.7) (49.0) 12.2
OPM (%) 30.8 30.6 21.0 21.7
P/E (x) 7.4 7.6 14.9 13.3
P/BV (x) 2.1 1.7 1.6 1.4
RoE (%) 32.9 25.1 11.1 11.4
RoCE (%) 17.9 14.8 7.9 8.9
EV/Sales (x) 2.0 1.8 1.7 1.5
EV/tonne 110 102 85 79
EV/EBITDA 6.4 5.9 8.3 6.7
exposure to Andhra Pradesh.
Installation of new captive power capacities to improve margins:Installation of new captive power capacities to improve margins:Installation of new captive power capacities to improve margins:Installation of new captive power capacities to improve margins:Installation of new captive power capacities to improve margins:
MAC has been adding up its windmill capacity to reduce
dependence on the state grid for power requirement. The
company's windmill capacity currently stands at 163MW, which
is sufficient to handle close to 61% of its total power
requirements. Going ahead, MAC is planning to invest `310cr
to establish 85MW of captive thermal power plant capacity,
which includes a 60MW unit at Ariyalur and a 25MW plant at
RR Nagar.
At the CMP, the stock is trading at 6.7x EV/EBITDA based on
FY2012E numbers. We have valued the company's cement
assets at US $75/tonne and have assigned a value of
`4cr/MW to the captive power plants. WWWWWe maintain a Buy ratinge maintain a Buy ratinge maintain a Buy ratinge maintain a Buy ratinge maintain a Buy rating
on the stock with a Ton the stock with a Ton the stock with a Ton the stock with a Ton the stock with a Target Parget Parget Parget Parget Price ofrice ofrice ofrice ofrice of `````141.141.141.141.141.

October 30, 2010
Mahindra and Mahindra - Accumulate
Net sales up 19.2%, volume growth supported topNet sales up 19.2%, volume growth supported topNet sales up 19.2%, volume growth supported topNet sales up 19.2%, volume growth supported topNet sales up 19.2%, volume growth supported top-line-line-line-line-line
performance:performance:performance:performance:performance: For 2QFY2011, M&M clocked net sales of
`5,434cr, up 19.2% yoy. This growth was aided by the
substantial 21% yoy growth in core volumes, while average
realisation per vehicle declined by around 1.6% due to change
in product mix. Strong volumes in the automotive and farm
equipment divisions aided top-line growth. In the UV segment,
M&M sold 56,639 vehicles and retained its dominant position
with a market share of 62.2% on the back of Xylo and Bolero,
which continued to see good off-take. The tractor volumes also
registered strong 12.4% yoy growth in 2QFY2011
supplementing overall growth in volumes. M&M's total market
share in the tractor segment during 2QFY2011 stood at 41.1%.
Margins at 16.5%; up 144bp qoq:Margins at 16.5%; up 144bp qoq:Margins at 16.5%; up 144bp qoq:Margins at 16.5%; up 144bp qoq:Margins at 16.5%; up 144bp qoq: During 2QFY2011, M&M's
EBITDA margins for 2QFY2011 came in 169bp ahead of our
estimate at 16.5%, a jump of 144bp qoq and a fall of 177bp
yoy. Raw material cost for the quarter increased by almost 289bp
yoy, while declined by 136bp on a qoq basis. Raw material
cost increased to 67.2% (64.3%) in 2QFY2011 primarily due
to the rise in the cost of steel and rubber. Better product mix
along with higher commercial vehicle volumes supported the
company to clock sequential improvement on the operating
front. Further, improved operating leverage helped the company
to save on other fixed expenditure, which restricted the
contraction in EBITDA margins yoy to a certain extent. Staff cost
included one-time VRS expenditure of `25.9cr, adjusted for
which the company recorded EBITDA margin of almost 17%
for the quarter.
Overall the company recorded decent improvement in operating
performance owing to the cost rationalisation measures.
Operating profit registered 7.7% yoy increase during 2QFY2011
to `895cr.
2QFY2011Result Update
Price - `732
Target Price - `827
Key Financials
% chg 14.6 41.9 21.0 16.5
Adj. Net PAdj. Net PAdj. Net PAdj. Net PAdj. Net Profitrofitrofitrofitrofit 786786786786786 2,0292,0292,0292,0292,029 2,4152,4152,4152,4152,415 2,7492,7492,7492,7492,749
% chg (37.6) 158.1 19.1 13.8
EBITDA margin (%) 6.9 14.8 14.2 14.0
Adj. EPS (Adj. EPS (Adj. EPS (Adj. EPS (Adj. EPS (`````))))) 13.513.513.513.513.5 34.934.934.934.934.9 41.541.541.541.541.5 47.247.247.247.247.2
P/E (x) 50.8 20.4 17.6 15.5
P/BV (x) 7.6 5.3 4.5 3.7
RoE (%) 21.3 21.5 25.7 24.7
RoCE (%) 7.4 23.2 22.5 22.3
EV/Sales (x) 2.7 1.9 1.5 1.3
EV/EBITDA (x) 44.0 13.7 11.6 10.1
Y/E MarchY/E MarchY/E MarchY/E MarchY/E March 2QFY112QFY112QFY112QFY112QFY11 2QFY102QFY102QFY102QFY102QFY10 % chg% chg% chg% chg% chg AngelAngelAngelAngelAngel DiffDiffDiffDiffDiff.....
(((((` cr)cr)cr)cr)cr) (yoy)(yoy)(yoy)(yoy)(yoy) est.est.est.est.est. %%%%%
Net SalesNet SalesNet SalesNet SalesNet Sales 5,4345,4345,4345,4345,434 4,5584,5584,5584,5584,558 19.219.219.219.219.2 5,3815,3815,3815,3815,381 1.01.01.01.01.0
EBITDA 895 831 7.7 795 12.6
EBITDA margin (%) 16.5 18.2 (177)bp 14.8 169bp
PPPPPAAAAATTTTT 758758758758758 703703703703703 7.97.97.97.97.9 635635635635635 19.419.419.419.419.4
Net PNet PNet PNet PNet Profit atrofit atrofit atrofit atrofit at `````758cr758cr758cr758cr758cr, up 7.9%:, up 7.9%:, up 7.9%:, up 7.9%:, up 7.9%: M&M registered net profit of
`758cr (`703cr) during the quarter, which was above our
expectation mainly due to higher other income and better-than-
expected operating performance. Other income for the quarter
increased 50% yoy `200cr (`133cr), which largely included
dividend received from subsidiaries and JVs.
M&M's utility vehicle (UV) and tractor volumes continued to
surprise positively, registering 35% (40%) overall growth in
FY2010. M&M also performed well above expectations in the
farm equipment and CV segments. We have modeled 10%
CAGR in UV volumes over FY2010-12E, while maintaining our
tractor volume growth assumption at 7% for the period. New
launches like GIO and Maxximo have met with good response.
Moreover, the new product launch in the M&HCV space is
expected to position the company in line with the other major
domestic CV players, aided by its well-known brand equity and
extensive sales network. Thus, M&M is one of the preferredThus, M&M is one of the preferredThus, M&M is one of the preferredThus, M&M is one of the preferredThus, M&M is one of the preferred
picks in our coverage universe and we maintain an Accumulatepicks in our coverage universe and we maintain an Accumulatepicks in our coverage universe and we maintain an Accumulatepicks in our coverage universe and we maintain an Accumulatepicks in our coverage universe and we maintain an Accumulate
on the stockon the stockon the stockon the stockon the stock. Our SOTP Target Price for M&M works out to
`827, wherein its core business fetches `579/share and the
value of its investments works out to `248/share.

October 30, 2010
Maruti Suzuki - Accumulate
Net sales marginally above expectation, up on higher volumeNet sales marginally above expectation, up on higher volumeNet sales marginally above expectation, up on higher volumeNet sales marginally above expectation, up on higher volumeNet sales marginally above expectation, up on higher volume
growth:growth:growth:growth:growth: Maruti reported 27% yoy growth in top-line at `9,147cr,
which was marginally above our expectation of `8,981cr, largely
aided by ~27.4% yoy jump in volumes. The top-line
performance was also aided by a substantial ~39.3% increase
in other operating income at `170cr (`122cr in 2QFY2010).
Average net realisation was marginally down by 0.5% yoy at
`2.85lakh (`2.86lakh), largely owing to the currency (Euro)
impact on export revenue, which stood at `992cr (`1,130cr in
1QFY2011 and `1,266cr in 2QFY2010), while average export
realisation declined by almost 18.6% yoy to `2.77lakh
(`3.41lakh in 2QFY2010).
Price - `1,551
Key Financials
% chg 14.3 42.3 20.6 17.7
Net profitNet profitNet profitNet profitNet profit 1,6671,6671,6671,6671,667 2,4982,4982,4982,4982,498 2,3962,3962,3962,3962,396 2,9882,9882,9882,9882,988
% chg (6.2) 49.8 (4.1) 24.7
EBITDA (%) 9.2 11.8 10.0 10.6
P/E (x) 41.8 18.5 18.7 15.0
P/BV (x) 4.8 3.8 3.0 2.6
RoE (%) 18.2 18.6 18.0 16.6
RoCE (%) 11.9 22.7 17.4 18.9
EV/Sales (x) 1.7 1.2 0.9 0.8
EV/EBITDA (x) 28.2 11.2 10.6 8.1
Y/E MarchY/E MarchY/E MarchY/E MarchY/E March 2QFY112QFY112QFY112QFY112QFY11 2QFY102QFY102QFY102QFY102QFY10 % chg% chg% chg% chg% chg AngelAngelAngelAngelAngel DiffDiffDiffDiffDiff.....
(((((` cr)cr)cr)cr)cr) (yoy)(yoy)(yoy)(yoy)(yoy) est.est.est.est.est. %%%%%
Net salesNet salesNet salesNet salesNet sales 9,1479,1479,1479,1479,147 7,2037,2037,2037,2037,203 27.027.027.027.027.0 8,9818,9818,9818,9818,981 1.91.91.91.91.9
EEEEEBITDA 960 916 4.8 895 7.3
EBITDA margin (%) 10.5 12.7 (222)bp 10.0 53bp
Reported PReported PReported PReported PReported PAAAAATTTTT 598598598598598 570570570570570 5.05.05.05.05.0 535535535535535 11.811.811.811.811.8
160bp yoy) to 5.3% (3.7%) of net sales. Royalty charges spiked
due the increase in sales of K-series engine models and
amendments in the various royalty agreements the company
has entered with Suzuki Motor Corporation, resulting in
additional royalty expense.
Net profit up 5% yoy:Net profit up 5% yoy:Net profit up 5% yoy:Net profit up 5% yoy:Net profit up 5% yoy: Maruti reported net profit of `598cr, up
5% yoy, as against our estimate of `535cr. Growth was largely
aided by higher volume growth and decent performance at the
operating front. However, higher other operating income and
other income for the quarter supported positive net profit growth
to a certain extent.
We broadly maintain our volume and earnings growth estimates
for the company. We model a 16.6% volume CAGR and an
11% CAGR in earnings over FY2010-12E for the company.
At the CMP, the stock is trading at 18.7x and 15x FY2011E and
FY2012E earnings of `82.9 and `103.4, respectively. WWWWWeeeee
maintain Accumulate on the stock with a Tmaintain Accumulate on the stock with a Tmaintain Accumulate on the stock with a Tmaintain Accumulate on the stock with a Tmaintain Accumulate on the stock with a Target Parget Parget Parget Parget Price ofrice ofrice ofrice ofrice of `````1,670,1,670,1,670,1,670,1,670,
at which level it would trade at 16.2x FY2012E earnings (5%at which level it would trade at 16.2x FY2012E earnings (5%at which level it would trade at 16.2x FY2012E earnings (5%at which level it would trade at 16.2x FY2012E earnings (5%at which level it would trade at 16.2x FY2012E earnings (5%
discount to our Sensex target multiple).discount to our Sensex target multiple).discount to our Sensex target multiple).discount to our Sensex target multiple).discount to our Sensex target multiple).
BetterBetterBetterBetterBetter-than--than--than--than--than-expected performance at the operating front:expected performance at the operating front:expected performance at the operating front:expected performance at the operating front:expected performance at the operating front: For
2QFY2011, Maruti's EBITDA margin came in 53bp better than
our estimate at 10.5%, an increase of 87bp qoq. However, on
a yoy basis, the company reported a 222bp yoy dip in EBITDA
margin, largely due to a 149bp yoy increase in raw-material
cost to 74.2% (72.7%) and a substantial increase in royalty (up
Y/E March (units)Y/E March (units)Y/E March (units)Y/E March (units)Y/E March (units) 2QFY112QFY112QFY112QFY112QFY11 2QFY102QFY102QFY102QFY102QFY10 % chg% chg% chg% chg% chg 1HFY111HFY111HFY111HFY111HFY11 1HFY101HFY101HFY101HFY101HFY10 % chg% chg% chg% chg% chg
TTTTTotal Votal Votal Votal Votal Volumeolumeolumeolumeolume 313,654313,654313,654313,654313,654 246,188246,188246,188246,188246,188 27.427.427.427.427.4 596,978596,978596,978596,978596,978 472,917472,917472,917472,917472,917 26.226.226.226.226.2
A1: M800 5,207 8,737 (40.4) 12,113 15,856 (23.6)
C: Omni, Versa, Eeco 41,596 22,200 87.4 75,117 44,433 69.1
A2: Alto, Wagon R,
Zen, Swift, A-star, Ritz 198,953 153,096 30.0 369,466 299,829 23.2
A3: SX4, Dezire 31,362 24,278 29.2 60,320 44,225 36.4
TTTTTotal Potal Potal Potal Potal Passenger Carsassenger Carsassenger Carsassenger Carsassenger Cars 277,118277,118277,118277,118277,118 208,311208,311208,311208,311208,311 33.033.033.033.033.0 517,016517,016517,016517,016517,016 404,343404,343404,343404,343404,343 27.927.927.927.927.9
MUV: Gypsy, Vitara 818 772 6.0 3,807 2,155 76.7
DomesticDomesticDomesticDomesticDomestic 277,936277,936277,936277,936277,936 209,083209,083209,083209,083209,083 32.932.932.932.932.9 520,823520,823520,823520,823520,823 406,498406,498406,498406,498406,498 28.128.128.128.128.1
ExportsExportsExportsExportsExports 35,71835,71835,71835,71835,718 37,10537,10537,10537,10537,105 (3.7)(3.7)(3.7)(3.7)(3.7) 76,15576,15576,15576,15576,155 66,41966,41966,41966,41966,419 14.714.714.714.714.7
Quarterly volume performance

October 30, 2010
NTPC - Accumulate
During 2QFY2011, NTPC's adjusted net profit declined by
17.8% yoy to `1,845cr, which was in line with our estimates.
During the quarter, bottom-line performance was affected by
under recovery of fixed costs in new plants, lower other income
due to lower interest rates and reduction in tax saving bonds.
TTTTTopopopopop-line growth at 20.5% yoy:-line growth at 20.5% yoy:-line growth at 20.5% yoy:-line growth at 20.5% yoy:-line growth at 20.5% yoy: NTPC posted robust top-line
growth of 20.5% yoy to `13,350cr in 2QFY2011, primarily
driven by higher realisations as Energy Sent Out (ESO) grew by
modest 3.5%, despite the 1,480MW capacity addition since
2QFY2010. Power generation during the quarter was affected
by fuel supply issues, maintenance-related shutdown and
backdown of plants due to monsoons. OPM fell by 748bp yoy
to 25.3% due to higher fuel costs and other expenses. NTPC's
reported net profit was down by 2% yoy to `2,107cr. During
the quarter, the company benefitted from extraordinary income
of `1,763cr due to the write-back of depreciation and advance
against depreciation (AAD) recognised as prior-period sale,
which boosted its bottom line. However, the company also made
a provision of `1,263cr with respect to sundry debtors, which
impacted its bottom line.
Operational highlights:Operational highlights:Operational highlights:Operational highlights:Operational highlights: During the quarter, NTPC's generation
volumes grew by 3.7% yoy to 52.2BU (50.4BU). The overall
plant load factor (PLF) for the company stood at 82.9%, up by
a marginal 49bp yoy. Power generation during the quarter was
affected due to fuel supply issues in some of the plants,
maintenance-related shutdown and backdown of plants due to
monsoons. ESO grew by 3.5% yoy to 48.8BU during the quarter.
The plant availability factor (PAF) for the company also improved
for both coal and gas-based stations. PAF for coal-based plants
stood at 86.5% (82.5%), up 400bp yoy, while that for gas-based
plants came in at 92.1% (88.2% in 2QFY2010). PAF of gas-
Research Analyst - Rupesh Sankhe/V Srinivasan
Price - `199
Target Price - `230
% chg 14.5 13.4 4.8 14.0
% chg 8.3 9.2 (4.4) 11.6
OPM (%) 23.8 29.9 29.3 29.4
P/E (x) 20.3 18.5 19.4 17.4
P/BV (x) 2.7 2.6 2.4 2.2
RoE (%) 14.2 14.2 12.6 13.0
RoCE (%) 8.8 11.7 10.9 11.3
EV/Sales (x) 4.2 3.8 3.7 3.4
EV/EBITDA (x) 17.6 12.8 12.7 11.7
based plants grew because of improved gas availability.
Capacity addition:Capacity addition:Capacity addition:Capacity addition:Capacity addition: Currently, NTPC's capacity stands at
32,690MW, while capacity under construction is at 16,844MW.
In 2QFY2011, the company commissioned 490MW Unit6 plant
at Dadri in Uttar Pradesh. Management has guided that it would
add 4,150MW and 6,500MW of capacity in FY2011E and
FY2012E, respectively. On a consolidated basis, the company
plans to incur capex of `29,000cr during FY2011 and add
4,150MW of capacity during FY2011.
At the CMP of `199, the stock is trading at P/BV of 2.4x FY2011E
and 2.2x FY2012E and at EV/MW of `4.35cr on FY2012E
estimates. Considering its regulated business model, with an
assured return on equity (RoE) and strong cash flow visibility,
we have assigned EV/MW of `5.25cr and P/BV of 2.3x on
FY2012E estimates to arrive at a Target Price of `230. WWWWWeeeee
maintain Accumulate on the stock.maintain Accumulate on the stock.maintain Accumulate on the stock.maintain Accumulate on the stock.maintain Accumulate on the stock.
Net salesNet salesNet salesNet salesNet sales 13,35013,35013,35013,35013,350 13,30313,30313,30313,30313,303 0.30.30.30.30.3 11,25311,25311,25311,25311,253 20.520.520.520.520.5
Operating profit 3,371 3,345 0.8 3,684 (8.5)
OPM (%) 25.3 25.1 11bp 32.7 (748bp)
Rep. net profitRep. net profitRep. net profitRep. net profitRep. net profit 2,1072,1072,1072,1072,107 1,8421,8421,8421,8421,842 14.414.414.414.414.4 2,1512,1512,1512,1512,151 (2.0)(2.0)(2.0)(2.0)(2.0)

October 30, 2010
ONGC - Accumulate
ONGC's 2QFY2011 numbers were in line with our expectation
on top-line front, while it was lower than our expectation on
the bottom-line front on account of higher DD&A expenditure.
On account of likely fuel reforms going ahead, we recommendwe recommendwe recommendwe recommendwe recommend
an Accumulate on ONGC.an Accumulate on ONGC.an Accumulate on ONGC.an Accumulate on ONGC.an Accumulate on ONGC.
Net crude realisation at US $62.8/bbl:Net crude realisation at US $62.8/bbl:Net crude realisation at US $62.8/bbl:Net crude realisation at US $62.8/bbl:Net crude realisation at US $62.8/bbl: ONGC's top-line
registered a growth of 20.2% yoy to `18,430cr (`15,338cr),
primarily on account of higher crude oil price and sales and
increase in APM gas selling price to US $4.2/mmbtu w.e.f June,
2010 from US $1.8/mmbtu. ONGC's top-line was in line with
our expectation of `18,942cr. ONGC's gross realisations from
crude oil sales stood at US $79.2/bbl (US $62.8/bbl). During
the quarter, the company shared subsidy burden of `3,019cr
(`2,630cr) as against our expectation of `3,300cr. Hence, net
realisations stood at US $62.8/bbl (US $56.4/bbl), up 11.2%
yoy. Crude oil sales volumes were up yoy to 5.91MMT
(5.55MMT), whereas gas sales volume fell yoy to 5BCM
(5.2BCM). Crude oil sales volume increased 11.3% qoq to
5.91MMT (5.31MMT) despite lower rate of 3.6% qoq increase
in crude production to 6.85MMT (6.63MMT) as inventory built
up, which happened in the last quarter due to production
disruption at the Numaligarh refinery and was sold during the
current quarter. Thus, the sales-to-production ratio improved
during the quarter on a qoq basis.
OPM expanded by 288bp yoy 61.4% :OPM expanded by 288bp yoy 61.4% :OPM expanded by 288bp yoy 61.4% :OPM expanded by 288bp yoy 61.4% :OPM expanded by 288bp yoy 61.4% : OPM during the quarter
improved by 288bp yoy to 61.4% (58.6%) on account of the
higher net crude oil realisations aided by lower other operating
expenses resulting in EBITDA registering a growth of 26.1%
yoy to `11,322cr (`8,981cr). Other operating expenses during
the quarter fell 7% yoy to `2,789cr (`3,000cr).
Research Analyst - Deepak Pareek/Amit Vora
Price - `1,303
% chg 8.1 (2.7) 15.5 5.5
Net PNet PNet PNet PNet Profitsrofitsrofitsrofitsrofits 19,79519,79519,79519,79519,795 19,40419,40419,40419,40419,404 24,46924,46924,46924,46924,469 26,33226,33226,33226,33226,332
% chg (0.4) (2.0) 26.1 7.6
OPM (%) 41.3 44.2 44.9 46.1
P/E (x) 14.1 14.4 11.4 10.6
P/BV (x) 3.0 2.8 2.4 2.1
RoE (%) 23.4 20.2 22.6 21.1
RoCE (%) 24.5 20.0 23.6 23.5
EV/Sales (x) 2.5 2.6 2.2 2.1
EV/EBITDA (x) 6.1 5.8 5.0 4.5
Operating IncomeOperating IncomeOperating IncomeOperating IncomeOperating Income 18,43018,43018,43018,43018,430 13,82313,82313,82313,82313,823 33.333.333.333.333.3 15,33815,33815,33815,33815,338 20.220.220.220.220.2
EBITDA 11,322 8,193 38.2 8,981 26.1
EBITDA Margin (%) 61.4 59.3 2.2 58.6 2.9
Adj. PAdj. PAdj. PAdj. PAdj. PAAAAATTTTT 5,3895,3895,3895,3895,389 3,6613,6613,6613,6613,661 47.247.247.247.247.2 5,0905,0905,0905,0905,090 5.95.95.95.95.9
PPPPPAAAAAT increases 5.9%:T increases 5.9%:T increases 5.9%:T increases 5.9%:T increases 5.9%: Depreciation, depletion and amortisation
cost (DD&A) cost during the quarter increased by a substantial
86.8% yoy to `4,400cr (`2,356cr), which was higher than our
estimate of `3,300cr. This was on account of significantly higher
dry well written off during the quarter. Net profit during the
quarter increased 5.9% yoy to `5,389cr (`5,090cr), which was
lower than our estimate of `6,198cr. This was mainly due to
the higher-than-expected DD&A expenditure during the quarter.
We expect the trend of strong operating performance to continue
on account of impact of the gas price hike, coupled with decline
in subsidy burden with deregulation of petrol prices and increase
in diesel prices. Moreover, the chances of further reforms in the
oil sector have strengthened on account of expected FPO of
IOC and ONGC in the last quarter of current financial year. At
`1,303, the stock is currently trading at 10.6x FY2012E EPS of
`123.1. We have valued the company at 10x FY2012E EPS
and added the value of cash and listed investments, thereby
arriving at a revised Target Price of `1,391 (`1,356). WWWWWeeeee
recommend Accumulate on the stock.recommend Accumulate on the stock.recommend Accumulate on the stock.recommend Accumulate on the stock.recommend Accumulate on the stock.

October 30, 2010
Reliance Industries - Buy
For 2QFY2011, RIL’s performance was largely in line with our
expectation on the top-line, EBIDTA and bottom-line fronts. Key
features during the quarter were improved refining margins (at
US$7.9/bbl v/s US $6.0/bbl in 2QFY2010); an 8.3% qoq
decline in oil production at the MA oilfields (at ~22,229bpd);
and production shutdown at Panna Mukta gas fields, which
resulted in a 77.9% qoq decline to 1.22mmscmd.
TTTTTop line and EBITDop line and EBITDop line and EBITDop line and EBITDop line and EBITDA largely in line:A largely in line:A largely in line:A largely in line:A largely in line: RIL's 2QFY2011 numbers
were in line with our estimates on the top-line and EBITDA fronts.
The company's top line increased by 22.7% yoy to `57,479cr
(`46,848cr) primarily on the back of 25.5% yoy growth in
refining revenue to `49,672cr (`39,564cr) and 46.5% yoy
increase in the oil and gas segment's revenue to `4,303cr
(`2,937cr). Growth in the refining segment was driven by the
increase in throughput coupled with increased crude oil prices.
The petrochemical segment registered an 8.6% qoq increase
in the top line, driven by higher sales volumes of ethylene,
propylene and polypropylene. Crude oil processed during the
quarter was higher by 40.8% yoy to 16.9mn tonnes (12.0mn
tonnes). KG-D6 gas production was subdued on a qoq basis,
with average production at 58.5mmscmd.
Margins improve on a qoq basis:Margins improve on a qoq basis:Margins improve on a qoq basis:Margins improve on a qoq basis:Margins improve on a qoq basis: During the quarter, RIL
reported GRMs of US $7.9/bbl (US $6.0/bbl), in line with our
expectation of US $8.0/bbl. Benchmark complex Singapore
margins, during the quarter, stood at around US $4.2/bbl. Thus,
RIL managed to earn a spread of US $3.7/bbl. Petrochemical
deltas were stable on a sequential basis with PP deltas remaining
stable on the back of sustained demand. Growth in the
petrochemical segment's EBIT was on account of higher
production volumes. The oil and gas segment's EBIT margin
declined by 153bp qoq to 39.6% (41.2%) due to production
shutdown at PMT and lower output at MA oil fields. Overall,
operating profit grew by 30.2% yoy to `9,396cr (`7,217cr),
Research Analyst - Deepak Pareek/Amit Vora
Price - `1,096
Key Financials
% chg 10.3 34.7 15.2 3.8
% chg (23.3) 6.2 42.9 25.6
EBITDA margin (%) 15.5 15.2 17.4 20.0
P/E (x) 23.9 14.6 15.8 12.6
RoE (%) 14.5 12.1 15.0 16.4
RoCE (%) 8.4 7.9 11.1 13.7
P/BV (x) 3.0 2.5 2.2 1.9
EV/ Sales (x) 2.7 2.0 1.7 1.5
EV/ EBITDA (x) 17.6 13.2 9.6 7.6
Net operating incomeNet operating incomeNet operating incomeNet operating incomeNet operating income 57,47957,47957,47957,47957,479 58,22858,22858,22858,22858,228 (1.3)(1.3)(1.3)(1.3)(1.3) 46,84846,84846,84846,84846,848 22.722.722.722.722.7
EBITDA 9,396 9,342 0.6 7,217 30.2
EBITDA margin (%) 16.3 16.0 0.3 15.4 0.9
Adj. PAdj. PAdj. PAdj. PAdj. PAAAAATTTTT 4,9234,9234,9234,9234,923 4,8514,8514,8514,8514,851 1.51.51.51.51.5 3,8523,8523,8523,8523,852 27.827.827.827.827.8
which was 3.5% lower than our estimate.
Depreciation increases:Depreciation increases:Depreciation increases:Depreciation increases:Depreciation increases: Depreciation during the quarter
exceeded our estimate, spiking 38.9% yoy on account of the
additional depreciation of the SEZ refinery and KG-basin gas
facility. Interest expenditure was largely flat qoq at `542cr. Other
income at `672cr declined by 6.9% qoq and came in line with
our estimate of `675cr.
PPPPPAAAAAT grew by 27.8% yoy:T grew by 27.8% yoy:T grew by 27.8% yoy:T grew by 27.8% yoy:T grew by 27.8% yoy: PAT grew by 27.8% yoy to `4,923cr
(`3,852cr), which was in line with our expectation of `5,095cr.
The key rationale for the marginal deviation in profitability from
our estimates was lower-than-anticipated production from MA
oil fields and the KG basin.
On account of strong growth in profitability over the next couple
of years, improvement in refining margins, positive news flow
from the E&P segment and resolution of uncertainties and
concerns associated with redeployment of cash flows, we remain
positive on RIL. Given its valuation of 1.9x FY2012E P/BV, we
believe the company is relatively undervalued at current levels.
WWWWWe maintain a Buy on RIL with a Te maintain a Buy on RIL with a Te maintain a Buy on RIL with a Te maintain a Buy on RIL with a Te maintain a Buy on RIL with a Target Parget Parget Parget Parget Price ofrice ofrice ofrice ofrice of `````1,260,1,260,1,260,1,260,1,260,
translating into an upside of 15.0% from current levels.translating into an upside of 15.0% from current levels.translating into an upside of 15.0% from current levels.translating into an upside of 15.0% from current levels.translating into an upside of 15.0% from current levels.

October 30, 2010
Sterlite Industries - Accumulate
2QFY2011 consolidated net revenue came in at `6,029cr, in
line with our estimates of `5,863cr. However, net profit at
`1,008cr was marginally lower than our estimates of `1,065cr.
No major surprises, results largely in line:No major surprises, results largely in line:No major surprises, results largely in line:No major surprises, results largely in line:No major surprises, results largely in line: Sterlite reported flat
top-line growth, as the positive impact of higher zinc-lead sales
and increased realisations was negated by lower copper cathode
production and power tariff. Sterlite sold 414mn units of
merchant power (higher by 23.4% yoy), but power tariff was
down by 15.4% yoy to `3.4/unit. Due to higher LME prices,
EBITDA margin grew by 272bp yoy to 24.4% despite cost
increases witnessed in a) the zinc-lead segment (+21.1% yoy
at US $977/tonne), b) the aluminium segment (+16% yoy at
US $1,748/tonne) and c) lower TC/RC margins (down 18% to
USc 11.8/lb). Consequently, EBITDA grew by 11.5% to `1,474cr.
Further, Vedanta Aluminium (VAL) posted loss of `24.7cr in
2QFY2011 v/s profit of `86.3cr in 2QFY2010, leading to mere
5.1% yoy net profit growth to `1,008cr.
Key conference call takeaways
Balco buyout in its last leg:Balco buyout in its last leg:Balco buyout in its last leg:Balco buyout in its last leg:Balco buyout in its last leg: Management indicated that Balco's
arbitration process is over and the final award from the
arbitration panel is expected by November 2010.
Investment in VInvestment in VInvestment in VInvestment in VInvestment in VALALALALAL::::: Management indicated that the total
investment in VAL till date has been `26,700cr, of which
`13,500cr is through external loan. Sterlite has contributed
`6,200cr and the balance is provided by Vedanta Resources.
Deferment of capex plans - Gives an opportunity to sell powerDeferment of capex plans - Gives an opportunity to sell powerDeferment of capex plans - Gives an opportunity to sell powerDeferment of capex plans - Gives an opportunity to sell powerDeferment of capex plans - Gives an opportunity to sell power
on merchant basis:on merchant basis:on merchant basis:on merchant basis:on merchant basis: Sterlite has temporarily deferred its
aluminium expansion at VAL and Balco for the next 12-24
months. As a result, the total capex deferred is US $1.5bn and
management is reworking on its capex plans. However, the
company will be selling power in the spot market. The
commissioning of the first 300MW unit of the 1,200MW power
plant at Balco is expected by March 2011.
Research Analyst - Paresh Jain/Pooja Jain
Price - `173
Target Price - `196
% chg (14.4) 15.4 10.9 25.8
% chg (19.5) 5.8 20.2 42.4
EBITDA margin (%) 22.2 24.9 25.7 30.1
P/E (x) 14.0 14.6 12.9 9.1
P/BV (x) 1.8 1.5 1.3 1.2
RoE (%) 14.4 11.3 10.9 13.9
RoCE (%) 10.7 10.9 9.7 13.6
EV/Sales (x) 2.4 2.1 1.9 1.4
EV/EBITDA (x) 10.7 8.5 7.3 4.6
(((((` cr)cr)cr)cr)cr) (yoy)(yoy)(yoy)(yoy)(yoy) (qoq)(qoq)(qoq)(qoq)(qoq)
Net salesNet salesNet salesNet salesNet sales 6,0296,0296,0296,0296,029 6,0856,0856,0856,0856,085 (0.9)(0.9)(0.9)(0.9)(0.9) 5,9255,9255,9255,9255,925 1.81.81.81.81.8
EBITDA 1,474 1,322 11.5 1,452 1.5
EBITDA margin (%) 24.4 21.7 272bp 24.5 (6bp)
Net profitNet profitNet profitNet profitNet profit 1,0081,0081,0081,0081,008 959959959959959 5.15.15.15.15.1 1,0081,0081,0081,0081,008 (0.0)(0.0)(0.0)(0.0)(0.0)
Sterlite Energy's (SEL) 2,400MW power project:Sterlite Energy's (SEL) 2,400MW power project:Sterlite Energy's (SEL) 2,400MW power project:Sterlite Energy's (SEL) 2,400MW power project:Sterlite Energy's (SEL) 2,400MW power project: SEL's first
600MW unit was synchronised in August and is expected to
start commercial production in 3QFY2011E. The second unit
of 600MW is expected to come on stream by 4QFY2011E.
TTTTTalwandi Sabo project:alwandi Sabo project:alwandi Sabo project:alwandi Sabo project:alwandi Sabo project: During the quarter, Sterlite received an
approval from Punjab Government for setting up another
660MW power plant in addition to the ongoing Talwandi Sabo
project of 1,980MW (3x660MW).
TTTTTuticorin's copper operations:uticorin's copper operations:uticorin's copper operations:uticorin's copper operations:uticorin's copper operations: The Supreme Court has extended
the stay on the Madras High Court's order till mid-December.
While the MoEF clearance is received for the 400kt copper
smelter expansion, the project is being rescheduled as the
consent from the State Pollution Control Board is awaited.
Sterlite is currently trading at 7.3x FY2011E and 4.6x FY2012E
EV/EBITDA. We believe the company is well placed to capitalise
on strong metal demand, higher merchant power and silver
sales. Moreover, the settlement of the Balco and Hindustan Zinc
(HZL) call option could provide a further upside to our target
price. However, we keenly wait for the revised capex plans of
the company and the outcome of the ongoing Tuticorin's
litigation. WWWWWe maintain Accumulate on the stock with an SOe maintain Accumulate on the stock with an SOe maintain Accumulate on the stock with an SOe maintain Accumulate on the stock with an SOe maintain Accumulate on the stock with an SOTPTPTPTPTP-----
based Tbased Tbased Tbased Tbased Target Parget Parget Parget Parget Price ofrice ofrice ofrice ofrice of `````196.196.196.196.196.

October 30, 2010
Tech Mahindra - Buy
Revenue performance mixed:Revenue performance mixed:Revenue performance mixed:Revenue performance mixed:Revenue performance mixed: For 2QFY2011, Tech Mahindra
reported revenues of US $328.2mn, which includes US
$63.8mn of one-time pass through revenues from a managed
services contract for procurement of hardware and software as
a part of a multi-year deal. Excluding this, revenues came in at
US $264.4mn v/s our estimate of US $268.1mn on the back of
strong volume growth of 4.5% qoq and rest due to better
exchange realisation. Volume growth was primarily driven by
strong constant currency growth of 9.5% qoq in the non-BT
accounts.
The top 2-5 clients' growth was flat in constant currency with
revenues growing by a mere 1.7% qoq. Real growth came in
from the top 6-10 clients, which registered a whopping 14.4%
qoq growth. Management sounded optimistic about the BPO
business and indicated that it is gaining traction. BPO revenues
surged 15.3% qoq to `77.1cr. The company has also bagged
a five-year multi-million dollar deal estimated at US $500mn
from Bharti Airtel (along with IBM and Spanco) in which it has
~30% revenue share and relates to back process outsourcing
of Bharti's Africa operations.
Margins surge:Margins surge:Margins surge:Margins surge:Margins surge: On the operating front, the company managed
to pull up its margins (excluding the one-off item) even after
the negative impact of offshore wage hikes, on the back of
increase in utilisation rate, favourable cross-currency impact
and lower selling, general and administrative expenses. Gross
margin increased by 226bp to 36.5% qoq, while EBITDA margin
improved by 298bp to 21.7% qoq on the back of the 200bp
favorable cross-currency impact and the rest due to strong
constant currency growth of 9.5% qoq in non-BT accounts,
countering the negative offshore wage hike impact. EBITDA
margin including the one-off revenues stood at 18.4%.
Research Analyst - Srishti Anand/Ankita Somani
Price - `766
Target Price - `941
(((((` cr)cr)cr)cr)cr) 2QFY11*2QFY11*2QFY11*2QFY11*2QFY11* 1QFY111QFY111QFY111QFY111QFY11 % chg% chg% chg% chg% chg 2QFY102QFY102QFY102QFY102QFY10 % chg% chg% chg% chg% chg
(qoq)(qoq)(qoq)(qoq)(qoq) (yoy)(yoy)(yoy)(yoy)(yoy)
Net revenueNet revenueNet revenueNet revenueNet revenue 1,2351,2351,2351,2351,235 1,1341,1341,1341,1341,134 8.98.98.98.98.9 1,1421,1421,1421,1421,142 8.18.18.18.18.1
EBITDA 268 213 26.2 293 (8.2)
EBITDA margin (%) 21.7 18.8 298bp 25.6 (388)bp
PPPPPAAAAAT**T**T**T**T** 174174174174174 144144144144144 20.220.220.220.220.2 169169169169169 2.72.72.72.72.7
Source: Company, Angel Research; Note:*Excludes one-time pass through
revenues of `299cr, **Excludes one-time prior period item due to Mahindra
Satyam
Key Financials
% chg 18.6 3.6 11.4 6.4
Adj Net profitAdj Net profitAdj Net profitAdj Net profitAdj Net profit 1,0151,0151,0151,0151,015 700700700700700 624624624624624 719719719719719
% chg - (31.0) (11.0) 15.2
EBITDA margin (%) 28.7 24.5 19.4 20.1
P/E (x) 9.9 14.3 16.1 14.0
P/BV (x) 5.2 3.5 2.9 2.4
RoE (%) 63.4 29.5 20.8 19.0
RoCE (%) 72.1 28.6 17.4 18.7
EV/Sales (x) 2.0 2.5 2.1 1.8
EV/EBITDA (x) 7.1 10.2 10.7 9.2
Non-BT accounts to drive strong growth:Non-BT accounts to drive strong growth:Non-BT accounts to drive strong growth:Non-BT accounts to drive strong growth:Non-BT accounts to drive strong growth: We expect the
company's non-BT business to be the growth driver, with 6%
CQGR revenue growth over 2QFY2011-4QFY2012. This will
result in 12% CAGR in dollar revenues over FY2010-12E even
with flat revenues from BT over the same period.
We expect the fresher hiring to pick up going forward which
will lead to utilisations settling at 73% for FY2011. We have
assumed attrition rates to abate post the wage hikes. This, along
with better demand landscape is expected to help utilisations
to revert to 75% in FY2012. Better utilisations in FY2012 will
help the company to record an improvement in margins to
20.1% from 19.4% in FY2011.
At the CMP, the stock is trading at 7.5x FY2012E EPS of `55.1
excluding the value of Mahindra Satyam stake. On SOTP basis,
we have valued the company at a PE of 12x (i.e. at 45% discount
to Infosys target multiple of 22x and in line with its three-year
historical average) on a standalone basis and added the
company's 42.7% stake in Satyam with a holding discount of
15% at the CMP, arriving at a Target Price of `941. WWWWWe maintaine maintaine maintaine maintaine maintain
a Buy on the stock.a Buy on the stock.a Buy on the stock.a Buy on the stock.a Buy on the stock.

October 30, 2010
United Phosphorus - Accumulate
Regaining pricing power - Realisations stablising:Regaining pricing power - Realisations stablising:Regaining pricing power - Realisations stablising:Regaining pricing power - Realisations stablising:Regaining pricing power - Realisations stablising: Total revenues
grew 8.6% yoy to `1,257cr as against our estimate of `1,388cr.
Revenue growth was restricted due to the exchange variance
(-3% yoy) and de-growth in North America (7%) and Europe
(25%) on account of adverse weather conditions (that prevent
germination of pest). Realisations during the quarter were stable,
which is a positive given that the company has been witnessing
a decline in realisations since the past few quarters. We believe
that the company is regaining pricing power. Overall, with
realisations stabilising and the company registering good
volumes since 3QFY2010, we believe that 2HFY2011 would
be better than 1HFY2011.
Higher other expense restricts improvement in OPM:Higher other expense restricts improvement in OPM:Higher other expense restricts improvement in OPM:Higher other expense restricts improvement in OPM:Higher other expense restricts improvement in OPM: OPM
improved by 150bp to 18.5% during the quarter. Higher other
expenses restricted expansion in OPM even though the company
recorded strong 400bp improvement in gross margins during
the quarter.
Conference call - KConference call - KConference call - KConference call - KConference call - Key takeawaysey takeawaysey takeawaysey takeawaysey takeaways
Management maintained its revenue guidance of 8-10%
(organic) and 15% on inorganic basis for the full year and
expansion of EBITDA margin of 200bp over FY2010.
India (45% yoy growth in 2QFY2011) and RoW (23% yoy
growth in 2QFY2011) would be the key contributors of growth
in 2HFY2011.
The company is targeting profit growth of 30% over the
next 2-3 years; expects to clock 20-25% growth in FY2011.
Strong balance sheet with net cash of ~`2,000cr at the
end of 2QFY2011.
Research Analyst - Sageraj Bariya
Price - `201
Target Price - `228
PPPPParameterarameterarameterarameterarameter 2QFY112QFY112QFY112QFY112QFY11 2QFY102QFY102QFY102QFY102QFY10 % chg% chg% chg% chg% chg AngelAngelAngelAngelAngel % chg% chg% chg% chg% chg
(((((` cr)cr)cr)cr)cr) est.est.est.est.est.
SalesSalesSalesSalesSales 1,2571,2571,2571,2571,257 1,1571,1571,1571,1571,157 8.68.68.68.68.6 1,3881,3881,3881,3881,388 (9.5)(9.5)(9.5)(9.5)(9.5)
EBITDA 233 196 18.4 278 (16.2)
EBITDA margin (%) 18.5 17.0 20.0
PPPPPAAAAATTTTT 131131131131131 101101101101101 13.413.413.413.413.4 134134134134134 (2.8)(2.8)(2.8)(2.8)(2.8)
% chg 35.4 9.7 7.3 10.1
% chg 12.9 24.7 18.0 25.2
EBITDA (%) 19.7 17.9 20.3 21.3
P/E (x) 20.0 16.1 14.3 11.4
P/BV (x) 3.3 2.9 2.5 2.1
RoE (%) 17.9 19.4 19.2 19.8
RoCE (%) 17.1 14.1 16.7 20.2
EV/Sales (x) 2.1 1.7 1.7 1.5
EV/EBITDA (x) 10.9 9.9 8.4 7.0
The agriculture sector, in the last few years, has been
rejuvenating globally on the back of rising food prices. Food
security is also top priority for most governments, while reducing
food loss is one of the easiest ways to boost food inventory.
Hence, we believe that the agrichemical companies would
continue to do well in wake of heightened food security risks
and strong demand is likely to be witnessed across the world.
Generics are expected to register healthy growth on account
of: a) increasing penetration and wresting market share from
innovators, and b) patent expiries worth US $3-4bn (2007)
during 2009-14.
Over FY2010-12, we expect UPL to post 8.7% and 21.6% CAGR
in sales and PAT, respectively. Going ahead, UPL's profitability
is set to perk up with EBITDA margins improving on the back of
stable raw material prices, pickup in demand and restructuring
of Cerexagri. We expect RoCE and RoE to improve from 14.1%
and 19.4% in FY2010 to 20.2% and 19.8% in FY2012,
respectively. At current valuations, the stock is trading at 11.4x
FY2012E EPS. WWWWWe maintain an Accumulate on the stock, withe maintain an Accumulate on the stock, withe maintain an Accumulate on the stock, withe maintain an Accumulate on the stock, withe maintain an Accumulate on the stock, with
a Ta Ta Ta Ta Target Parget Parget Parget Parget Price ofrice ofrice ofrice ofrice of `228.228.228.228.228.

October 30, 2010
TTTTTechnical Picks |echnical Picks |echnical Picks |echnical Picks |echnical Picks |
Bulls not willing to let go - 5932 make or break level
Sensex (20032) / Nifty (6018)
Bearish Head and shoulder in the making
Source: Falcon
Exhibit 1: Sensex Daily chartIn our previous Weekly report, we had mentioned that the indices
are likely to trade in the range of 19770 / 5932 on the downside
and 20854 / 6284 on the upside, and any close below 5932 /
19770 levels would mean loss of momentum on the upside.
The week witnessed volatile trading sessions but managed to
close with a marginal loss. The Sensex ended with net loss of
0.66%, whereas the Nifty lost 0.8% vis-à-vis the previous week.
Pattern Formation
On the Daily chartDaily chartDaily chartDaily chartDaily chart, we are observing a Head and Shoulder
pattern in the making, if the indices trade and close below
19768 / 5932 level (Refer Exhibit No.1).
On the WWWWWeekly charteekly charteekly charteekly charteekly chart, any move above the high of the
"Shooting Star" 20854 / 6284 would resume the up trend
(Refer Exhibit No.2).
Future Outlook
In view of the price action in the range of 19768 - 20854 /
5932 - 6284, it is evident that a breakdown or breakout from
either side of the range would dictate the direction of the trend.
On the upside, any move above the high of the "Shooting Star"
on the Weekly chart, which is the higher end of the range,
would resume the uptrend. However, a breakdown below
19768 / 5932 level would lead to bearish "Head and Shoulder"
breakdown and the indices may test Fibonacci retracement levels
of 19328 - 18979 / 5814 - 5706 of the entire up-move, which
started from 17819 to 20854 / 5348 to 6284.
Shooting Star
Source: Falcon
Exhibit 2: Sensex Weekly chart

October 30, 2010
TTTTTechnical Picks |echnical Picks |echnical Picks |echnical Picks |echnical Picks |
Technical Research Team
Weekly Pivot Levels For Nifty 50 Stocks
SENSEX
NIFTY
BANK NIFTY
A.C.C.
ABB LTD.
AMBUJACEM
AXISBANK
BHARAT PETRO
BHARTIARTL
BHEL
CAIRN
CIPLA
DLF
GAIL
HCL TECHNOLO
HDFC BANK
HERO HONDA
HINDALCO
HINDUNILVR
HOUS DEV FIN
ICICI BANK
IDEA
IDFC
INFOSYS TECH
ITC
JINDL STL&PO
JPASSOCIAT
KOTAK BANK
LT
MAH & MAH
MARUTI
NTPC
ONGC CORP.
PNB
POWERGRID
RANBAXY LAB
RCOM
REL.CAPITAL
RELIANCE
RELINFRA
RPOWER
SIEMENS
STATE BANK
STEEL AUTHOR
STER
SUN PHARMA.
SUZLON
TATA POWER
TATAMOTORS
TATASTEEL
TCS
UNITECH LTD
WIPRO
SCRIPS
20,768 20,400 20,085 19,717 19,401
6,250 6,134 6,035 5,919 5,821
12,914 12,622 12,289 11,997 11,664
1,053 1,019 995 961 937
961 891 851 782 741
150 145 141 136 132
1,523 1,497 1,464 1,438 1,405
765 748 724 706 682
352 339 328 315 305
2,600 2,523 2,477 2,400 2,355
349 335 325 311 301
370 361 351 343 333
388 370 355 337 323
521 506 495 480 469
437 421 410 393 382
2,425 2,353 2,295 2,222 2,164
1,962 1,914 1,878 1,830 1,794
233 222 213 202 193
317 306 297 286 278
730 709 691 669 651
1,241 1,202 1,138 1,099 1,035
78 73 69 63 59
218 209 202 193 186
3,128 3,050 2,997 2,919 2,866
178 175 170 166 161
746 722 701 677 657
131 126 122 117 113
523 494 474 445 425
2,085 2,056 2,021 1,993 1,958
771 752 727 708 683
1,630 1,591 1,546 1,506 1,461
216 205 199 189 182
1,391 1,347 1,319 1,275 1,247
1,395 1,343 1,304 1,252 1,213
111 106 103 97 94
634 607 590 562 545
192 186 180 174 167
891 853 827 789 763
1,129 1,113 1,094 1,077 1,058
1,098 1,067 1,046 1,015 994
167 162 157 152 146
878 848 826 796 774
3,308 3,229 3,174 3,095 3,039
233 214 202 183 172
178 174 170 165 161
2,196 2,153 2,114 2,071 2,033
62 59 57 53 51
1,466 1,432 1,406 1,372 1,346
1,239 1,199 1,170 1,130 1,101
650 620 600 570 551
1,094 1,074 1,052 1,032 1,010
93 90 87 84 81
463 442 428 407 393
R2R2R2R2R2 R1R1R1R1R1 PIVPIVPIVPIVPIVOOOOOTTTTT S1S1S1S1S1 S2S2S2S2S2

October 30, 2010
Derivatives Review |Derivatives Review |Derivatives Review |Derivatives Review |Derivatives Review |
Volatility may continue but with positive bias
Nifty spot has closed at 60186018601860186018 this week, against a close of 60666066606660666066 last week. The Put-Call Ratio is 1.201.201.201.201.20 levels and the annualized Cost
of Carry (CoC) is positive 5.825.825.825.825.82%. The Open Interest of Nifty Futures has decreased by 13.0613.0613.0613.0613.06% due to expiry of Oct. series.
Derivative Strategy
Scrip : NTPCScrip : NTPCScrip : NTPCScrip : NTPCScrip : NTPC CMP :CMP :CMP :CMP :CMP : `195.30/-195.30/-195.30/-195.30/-195.30/- LLLLLot Size : 1000ot Size : 1000ot Size : 1000ot Size : 1000ot Size : 1000 Expiry Date (F&O) :Expiry Date (F&O) :Expiry Date (F&O) :Expiry Date (F&O) :Expiry Date (F&O) :
25th Nov, 2010
Expected PayoffView: Mildly Bullish
`185.00
`190.00
`195.00
`200.00
`205.00
`210.00
BEPBEPBEPBEPBEP::::: `````192.50/-192.50/-192.50/-192.50/-192.50/-
Max. Risk: UnlimitedMax. Risk: UnlimitedMax. Risk: UnlimitedMax. Risk: UnlimitedMax. Risk: Unlimited Max. PMax. PMax. PMax. PMax. Profit:rofit:rofit:rofit:rofit: `````7,500.007,500.007,500.007,500.007,500.00
If NTPC continues to trade below BEP. If NTPC closes on or above `200.
NONONONONOTETETETETE::::: Profit can be booked before expiry if NTPC moves in the favorable direction and time value decays.
Strategy: Covered Call Writing
Buy/SellBuy/SellBuy/SellBuy/SellBuy/Sell QtyQtyQtyQtyQty ScripScripScripScripScrip StrikeStrikeStrikeStrikeStrike SeriesSeriesSeriesSeriesSeries OptionOptionOptionOptionOption RateRateRateRateRate
PPPPPricericericericerice TTTTTypeypeypeypeype (Rs.)(Rs.)(Rs.)(Rs.)(Rs.)
Buy 1000 NTPC Fut. Nov. - 196
Sell 1000 NTPC 200 Nov. Call 3.50
Closing PClosing PClosing PClosing PClosing Pricericericericerice ExpectedExpectedExpectedExpectedExpected
PPPPProfit/Lrofit/Lrofit/Lrofit/Lrofit/Lossossossossoss
(`7.50)
(`2.50)
`2.50
`7.50
`7.50
`7.50
The Nifty November future closed at a premium of 25.90 points
against the premium of 50.15 points last week and the
December future closed at a premium of 51.00 points. Nifty
Nov. premium has gone down from last week except expiry
day where the premium had increased due to long rollover.
Few stocks where Cost-of-Carry is substantially high are KSOILS,
NAGARFERT, FSL, RELMEDIA and ORBITCORP. Stocks where
Cost-of-Carry is negative are HEROHONDA, AMBUJACEM,
MARUTI, ULTRACEMCO and ROLTA.
Total open interest of the market is `1,33,827cr against
`1,89,918cr last week and the stock futures open interest has
decreased from `53,794cr to `44658cr. In Nov. series Nifty
rollover is 69.26% and Banknifty rollover is 70.69% which is
less in terms of absolute open interest from last month. Over
the month, most of the Midcap banking stocks added significant
open interest and rollover is also in line with average while
many large caps named SBIN, HDFCBANK and ICICIBANK
have shed open interest over the month. FMCG biggies
HINDUNILVR and ITC have witnessed significant rollover both
in terms of absolute open interest and percentage.
Open Interest Analysis Cost-of-Carry Analysis
Nifty PCR is1.20 points. In the new series, the 5800 and 6000
Put options have significant open interest while many calls have
more or less same open interest. Thus, initial option data is not
suggesting any strong resistance for the market whereas
immediate resistance of 6200 is still intact. Amongst stock
options, TATAMOTORS 1200 Call and RELIANCE 1100, 1150
and 1200 Call options have substantial open interest.
Put-Call Ratio Analysis Futures Annual Volatility Analysis
Historical volatility of Nifty has decreased from 21.30% to
20.38%. IV of at-the-money options has increased from 18.00%
to 20.00%. Throughout the week market continued to be choppy
and despite correction from higher levels IV was not increasing.
This does not suggest any meaningful correction in the market.
Some liquid counters where HV has increased significantly are
BRFL, ICICIBANK, TATACHEM, ABB and ABGSHIP. Stocks where
HV has decreased significantly are RELMEDIA, PTC,
NAGARFERT, ULTRACEMCO, and INFOSYSTCH.

October 30, 2010
Mutual FMutual FMutual FMutual FMutual Fund Fund Fund Fund Fund Focus |ocus |ocus |ocus |ocus |
Disclaimer: Angel Broking Ltd is not responsible for any error or inaccuracy or any losses suffered on account of information contained in this report. Data source is from MFI Explorer. Mutual
Fund investments are subjected to market risk. Please read the Statement of Additional Information and Scheme Information document carefully before investing.
Scheme Objective
To generate capital appreciation by actively investing in
equity / equity related securities. For defensive considerations,
the Scheme may invest in debt, money market instruments.
Large Cap (%) 57.57
Mid Cap (%) 11.61
Small Cap (%) 0.25
Equity (%)Equity (%)Equity (%)Equity (%)Equity (%) 63.5363.5363.5363.5363.53
Cash & Equivalent (%)Cash & Equivalent (%)Cash & Equivalent (%)Cash & Equivalent (%)Cash & Equivalent (%) 36.4736.4736.4736.4736.47
Portfolio Attributes (30-Sept-10)
FFFFFace Vace Vace Vace Vace Valuealuealuealuealue Rs. 10
NANANANANAV (28-V (28-V (28-V (28-V (28-OctOctOctOctOct-10)-10)-10)-10)-10) Rs. 109.50
52-52-52-52-52-WWWWWeek High (13-eek High (13-eek High (13-eek High (13-eek High (13-OctOctOctOctOct-10)-10)-10)-10)-10) Rs. 110.85
52-52-52-52-52-WWWWWeek Leek Leek Leek Leek Low (03-Nov-09)ow (03-Nov-09)ow (03-Nov-09)ow (03-Nov-09)ow (03-Nov-09) Rs. 80.24
FFFFFund Categoryund Categoryund Categoryund Categoryund Category Equity - Large Cap
TTTTTypeypeypeypeype Open Ended
Entry LEntry LEntry LEntry LEntry Loadoadoadoadoad NIL
Exit LExit LExit LExit LExit Loadoadoadoadoad 1% for redemption within 1 year
Minimum InvMinimum InvMinimum InvMinimum InvMinimum Inv..... Rs. 5000
Inception DateInception DateInception DateInception DateInception Date 31st October 2002
AAAAAUM (30-UM (30-UM (30-UM (30-UM (30-SeptSeptSeptSeptSept-10)-10)-10)-10)-10) Rs. 2603.59
Benchmark IndexBenchmark IndexBenchmark IndexBenchmark IndexBenchmark Index S&P Nifty
FFFFFund Mangerund Mangerund Mangerund Mangerund Manger Mr. S Naren / Mr. Rajat Chandak
Fund at a Glance
*Note: Ratios are for 3 Year Period, Yearly Rolling on daily frequency on CAGR Basis
as on 28th October, 2010
Expense Ratio (%)Expense Ratio (%)Expense Ratio (%)Expense Ratio (%)Expense Ratio (%) 1.87
PPPPPortfolio Tortfolio Tortfolio Tortfolio Tortfolio Turnover (%)urnover (%)urnover (%)urnover (%)urnover (%) 185
Standard DeviationStandard DeviationStandard DeviationStandard DeviationStandard Deviation 0.40
BetaBetaBetaBetaBeta 1.01
SharpeSharpeSharpeSharpeSharpe 0.37
JensenJensenJensenJensenJensen 9.78
Key Ratios*
YYYYYearsearsearsearsears TTTTTotal Amountotal Amountotal Amountotal Amountotal Amount SIP PSIP PSIP PSIP PSIP Presentresentresentresentresent LLLLLump sumump sumump sumump sumump sum
InvestedInvestedInvestedInvestedInvested VVVVValuealuealuealuealue PPPPPresent Vresent Vresent Vresent Vresent Valuealuealuealuealue
1 year 12,000 13,568 15,092
3 years 36,000 54,190 47,441
5 years 60,000 1,00,339 1,68,502
Investment Analysis** (as on 28th October 2010)
**Note: SIP Investment of Rs. 1000 per month
Investment Philosophy
It is a diversified equity plan that follows the growth investment
philosophy to invest in a portfolio of large, mid and small-cap
stocks.
It has the ability to move gradually into cash as the market gets
over-valued.
It offers a portfolio of stocks selected through rigorous
bottom-up fundamental analysis across market capitalisations
on a diversified basis for long-term capital appreciation.
Investor Profile
It is suitable for conservative or risk-averse investors who have
a long term investing horizon of more than five years.
Performance Analysis (% Returns)
Note: Returns are as on28th October, 2010 on CAGR basis
31.71
58.67
9.59
26.42
34.89
24.07
49.34
1.64
20.91
16.28
0
10
20
30
40
50
60
70
1 Year 2 Years 3 Years 5 Years Since Inception
ICICI Prudential Dynamic Plan - Growth S&P Nifty
Top 10 Sectors as on 30th September 2010
36.47
12.57
10.07
9.77
9.25
4.82
4.72
3.21
2.57
2.34
0 10 20 30 40
Current Assets
Banks
Oil & Gas
Software
Pharma
Power & Control equipment Mfg.
Telecom Services
Steel
Auto
Non Ferrous metals
Top 10 Holdings as on 30th September 2010
6.37
4.82
4.72
4.62
3.48
3.47
3.37
2.66
2.54
2.26
0.00 2.00 4.00 6.00 8.00
RIL
BHEL
Airtel
Infosys
Cadila Healthcare
IPCA Laboratories
ICICI Bank
ONGC
Oracle Fin. Ser. Software
M&M
Recommended Schemes in Equity Diversified
ICICI Prudential Dynamic Plan - Growth
Investment Benefits
It has agility, aimed at capturing upside opportunities in the
market across market capitalizations.
On the flip side, in case stock markets get into an overvalued
position, the plan has the ability to switch to cash thus seeking
to limit the downside.
% of Net Assets% of Net Assets% of Net Assets% of Net Assets% of Net Assets

October 30, 2010
Disclaimer: Angel Broking Ltd is not responsible for any error or inaccuracy or any losses suffered on account of information contained in this report. Data source is from MFI Explorer. Mutual
Fund investments are subjected to market risk. Please read the Statement of Additional Information and Scheme Information document carefully before investing.
Reliance Growth - Growth
Scheme Objective
The primary investment objective of the scheme is to achieve
long-term growth of capital by investing in equity and equity related
securities through a research based investment approach.
Large Cap (%) 43.31
Mid Cap (%) 31.10
Small Cap (%) 1.21
Equity (%)Equity (%)Equity (%)Equity (%)Equity (%) 94.6394.6394.6394.6394.63
Cash & Equivalent (%)Cash & Equivalent (%)Cash & Equivalent (%)Cash & Equivalent (%)Cash & Equivalent (%) 5.375.375.375.375.37
Portfolio Attributes (30-Sept-10)
FFFFFace Vace Vace Vace Vace Valuealuealuealuealue Rs. 10
NANANANANAV (28-V (28-V (28-V (28-V (28-OctOctOctOctOct-10)-10)-10)-10)-10) Rs. 529.41
52-52-52-52-52-WWWWWeek High (25-eek High (25-eek High (25-eek High (25-eek High (25-OctOctOctOctOct-10)-10)-10)-10)-10) Rs. 538.81
52-52-52-52-52-WWWWWeek Leek Leek Leek Leek Low (03-Nov-09)ow (03-Nov-09)ow (03-Nov-09)ow (03-Nov-09)ow (03-Nov-09) Rs. 366.27
FFFFFund Categoryund Categoryund Categoryund Categoryund Category Equity - Mid Cap
TTTTTypeypeypeypeype Open Ended
Entry LEntry LEntry LEntry LEntry Loadoadoadoadoad NIL
Exit LExit LExit LExit LExit Loadoadoadoadoad 1% for redemption within 1 year
Minimum InvMinimum InvMinimum InvMinimum InvMinimum Inv..... Rs. 5000
Inception DateInception DateInception DateInception DateInception Date 8th October 1995
AAAAAUM (30-UM (30-UM (30-UM (30-UM (30-SeptSeptSeptSeptSept-10)-10)-10)-10)-10) Rs. 8106.62 crores
Benchmark IndexBenchmark IndexBenchmark IndexBenchmark IndexBenchmark Index BSE 100
FFFFFund Mangerund Mangerund Mangerund Mangerund Manger Mr. Sunil Singhania
Fund at a Glance
Ideal for Investors
Investors looking for diversification
Investment Horizon: Long Term
Risk Appetite: Medium to High
*Note: Ratios are for 3 Year Period, Yearly Rolling on daily frequency on CAGR Basis
as on 28th October, 2010
Expense Ratio (%)Expense Ratio (%)Expense Ratio (%)Expense Ratio (%)Expense Ratio (%) 1.79
PPPPPortfolio Tortfolio Tortfolio Tortfolio Tortfolio Turnover (%)urnover (%)urnover (%)urnover (%)urnover (%) 42
Standard DeviationStandard DeviationStandard DeviationStandard DeviationStandard Deviation 0.49
BetaBetaBetaBetaBeta 1.09
SharpeSharpeSharpeSharpeSharpe 0.46
JensenJensenJensenJensenJensen 7.46
Key Ratios*
YYYYYearsearsearsearsears TTTTTotal Amountotal Amountotal Amountotal Amountotal Amount SIP PSIP PSIP PSIP PSIP Presentresentresentresentresent LLLLLump sumump sumump sumump sumump sum
InvestedInvestedInvestedInvestedInvested VVVVValuealuealuealuealue PPPPPresent Vresent Vresent Vresent Vresent Valuealuealuealuealue
1 year 12,000 14,110 15,675
3 years 36,000 57,660 46,218
5 years 60,000 1,09,681 1,80,071
Investment Analysis** (as on 28th October 2010)
**Note: SIP Investment of Rs. 1000 per month
Investment Strategy
The fund focuses on companies with mid-size capitalization,
with a small exposure to companies with a large-size
capitalization.
The strategy is to invest in companies which show the potential
to become blue chip, even before they become one.
The fund manager chases growth but is emphatic about the
fact that he does not adhere to a quick entry-exit policy with
this fund and actually sticks to a buy-and-hold philosophy.
Good stock picking and a very low turnover is what has
contributed to this fund's success.
Performance Analysis (% Returns)
Note: Returns are as on 28th October, 2010 on CAGR basis
38.68
63.54
10.63
28.07 30.14
24.36
51.81
2.01
21.21
16.72
0
10
20
30
40
50
60
70
1 Year 2 Years 3 Years 5 Years Since Inception
Reliance Growth - Growth BSE100
Top 10 Sectors as on 30th September 2010
14.71
8.99
7.19
6.06
5.54
5.37
4.44
3.17
2.88
2.84
0 2 4 6 8 10 12 14 16
Banks
Pharma
Software
Oil & Gas
Steel
Current Assets
Auto
Food & Beverages
Fertilizers, Pesticides & Agrochemicals
Engineering & Capital Goods
Top 10 Holdings as on 30th September 2010
5.37
4.94
3.89
3.39
3.25
3.09
2.59
2.46
2.29
2.24
0 1 2 3 4 5 6
Cash
SBI
Bank of Baroda
ICICI Bank
Jindal Saw
Lupin
ONGC
EID Parry
Jindal Steel and Power
HCL Technologies
Mutual FMutual FMutual FMutual FMutual Fund Fund Fund Fund Fund Focus |ocus |ocus |ocus |ocus |

October 30, 2010
Commodities Center |Commodities Center |Commodities Center |Commodities Center |Commodities Center |
Introduction
Commodities in the recent past have witnessed phenomenal
performance. Although, markets have also seen high volatility
on the back of mixed sentiments ahead of the FOMC Meeting
on 3rd-4th November. Precious metals have received support
mainly due to the concerns regarding another asset purchase
program by the US Federal Reserve. Other commodities like
base metals and energy have taken cues from fundamentals
like supply concerns, expectations of strikes, weather etc.
Performance of commodities in the fourth-quarter is crucial as
it helps to provide further direction. The US Dollar Index (DX)
has declined sharply since the Federal Reserve's indication to
pump more money into the financial system. There is a lot of
speculation doing the rounds of the amount of debt purchases
of the US Fed.
Commodities Special Report
GOLD
Gold prices are heading for the 10th consecutive gain this year.
Supportive fundamentals by way of the ongoing economic
uncertainty coupled with rise in investment demand are leading
to rise in prices. But such high prices may not be sustainable asBut such high prices may not be sustainable asBut such high prices may not be sustainable asBut such high prices may not be sustainable asBut such high prices may not be sustainable as
the factors which were earlier supporting gold prices may losethe factors which were earlier supporting gold prices may losethe factors which were earlier supporting gold prices may losethe factors which were earlier supporting gold prices may losethe factors which were earlier supporting gold prices may lose
intensityintensityintensityintensityintensity..... This is especially with regard to Quantitative Easing
(QE) by the US Federal Reserve in November. This event has
already been factored in Gold prices but the amount under this
QE2 program in under doubt again and may rise to as high as
$2 trillion.
Another fundamental factor which is not supportive to gold is
the decline in gold sales in India. Gold still remains the
traditional asset from the Indian perspective, but higher gold
prices have led to reduced physical buying. This is clearly seen
from the latest data which shows that Indian imports in
September declined sharply by 17% to 32.6 tons of gold as
against 39.7 tons in the same period last year. As compared to
September, physical gold sales are down as Mumbai is now
seeing a rise in scrap sales by 20-25%, whereas fresh gold
sales have declined 30-40%. Jewelry demand is clearly set to
weaken this festive season as gold has tested levels above
CommodityCommodityCommodityCommodityCommodity YtD%YtD%YtD%YtD%YtD% MoM%MoM%MoM%MoM%MoM% Wkly %Wkly %Wkly %Wkly %Wkly % CMPCMPCMPCMPCMP
Gold 18.6 3.0 1.7 19793
Silver 38.2 12.6 5.2 37003
Copper 9.2 2.0 (2.0) 369.35
Aluminum 1.4 1.65 (2.3) 105.55
Crude Oil (2.5) 1.2 (1.0) 3633
Natural Gas (28.9) 0.5 11.3 184.5
Source: IMD
Rs20,000. Gold prices in the Indian markets have declined
from a high of Rs20,028 and are currently trading around
Rs19,790.
Gold Outlook
Currently, gold prices on the MCX are trading around Rs 19790
per 10 gms. Despite the trend remaining up, we advise investors
to buy gold at lower levels as a minor correction is still possible.
If gold prices dip, we recommend investors to Buy MCX GoldIf gold prices dip, we recommend investors to Buy MCX GoldIf gold prices dip, we recommend investors to Buy MCX GoldIf gold prices dip, we recommend investors to Buy MCX GoldIf gold prices dip, we recommend investors to Buy MCX Gold
Between 18900-19000 Sl-18250 T1-19950 T2-20400Between 18900-19000 Sl-18250 T1-19950 T2-20400Between 18900-19000 Sl-18250 T1-19950 T2-20400Between 18900-19000 Sl-18250 T1-19950 T2-20400Between 18900-19000 Sl-18250 T1-19950 T2-20400
CRUDE OIL
We have entered the fourth-quarter of the year, the most crucial
time as far as performance of commodities is concerned. This
is because fourth-quarter price performance helps to provide
cues in terms of direction in the coming year. Oil prices have
touched a high of $84.43/bbl on the Nymex in October. The
OPEC is expected to maintain oil production targets unchanged
at 24.84 million barrels per day for a further period. Until oil
prices stay between $75-$85/bbl, it is very likely that it will
change production quotas. Demand is expected to rise in the
coming month in winter month. The US Energy Department in
its monthly short-term energy outlook has indicated a rise of
11% use of heating oil in households. The International Energy
Agency (IEA) has forecasted the global oil consumption to
increase and reach 86.9 million barrels a day in 2010 and
88.2 million barrels a day in 2011.
Outlook for Crude oil
In the near-term, crude oil prices are expected to come under
pressure on easing concerns over supply from France. But,
France's oil industry is unlikely to take a positive turn very soon
as given that more strikes are in the process and workers
continue to block a key port. This could bring buying in crude
oil at lower levels. Hence, from the medium-term perspective,
we expect the uptrend to resume.
MCX crude oil prices are currently trading at Rs 3630/bbl, butMCX crude oil prices are currently trading at Rs 3630/bbl, butMCX crude oil prices are currently trading at Rs 3630/bbl, butMCX crude oil prices are currently trading at Rs 3630/bbl, butMCX crude oil prices are currently trading at Rs 3630/bbl, but
we expect prices to correct slightly in the nearwe expect prices to correct slightly in the nearwe expect prices to correct slightly in the nearwe expect prices to correct slightly in the nearwe expect prices to correct slightly in the near-term. W-term. W-term. W-term. W-term. Weeeee
recommend investors to buy crude oil around Rs 3400-3450,recommend investors to buy crude oil around Rs 3400-3450,recommend investors to buy crude oil around Rs 3400-3450,recommend investors to buy crude oil around Rs 3400-3450,recommend investors to buy crude oil around Rs 3400-3450,
Sl-3190 T1-3800, T2-3950.Sl-3190 T1-3800, T2-3950.Sl-3190 T1-3800, T2-3950.Sl-3190 T1-3800, T2-3950.Sl-3190 T1-3800, T2-3950.
Continued...

October 30, 2010
Research Analyst (Commodity) - Naser Parkar
Commodities Special Report
COPPER
Current Scenario
1) China posted a month-on-month, year-on-year decline in
refined copper imports for September as profitable arbitrage
window remained closed during July-August. This resulted in
few shipments arriving last month. China's refined copper
imports in September down 15% on-year, down 9.5% on-month
to 241,711 metric tons, while January-September imports down
11% on-year at 2.29 million tons, according to Customs.
2) JP Morgan is on its way to launch an Exchange-traded Fund
(ETF) which needs the approval of US regulator, the Securities
and Exchange Commission
China's GDP growth shrinked to 9.6% in the third quarter from
10.3% in the second quarter and 11.9% in the first quarter of
2010. However, the GDP growth continues to remain above its
overall target of 8% for 2010. Since China is the driver of base
metals demand, we expect copper prices to continue to rise,
taking support from the Chinese economic scenario. But we do
not expect prices to take a sharp rally from the current levels of
$8400/tonne as the world's fastest growing economy is
constantly trying to bring down its inflation rate which is currently
at 3.6%. Moreover, progress in the US and Euro Zone economy
continues to remain weak. The red metal will also take cues
from movement in the US Dollar.
Outlook
In the shortIn the shortIn the shortIn the shortIn the short-term-term-term-term-term, we expect copper prices to trade with a positive
bias as a decline in production and inventories coupled with a
tight market will support prices. Also, the launch of copper ETF
will also support prices because ETF's aim at offering investors
to participate in the physical copper market through investment
in securities without any buy and store of the metal.
Copper prices are currently trading around Rs 369/kgCopper prices are currently trading around Rs 369/kgCopper prices are currently trading around Rs 369/kgCopper prices are currently trading around Rs 369/kgCopper prices are currently trading around Rs 369/kg. W. W. W. W. Weeeee
recommend a buy at these levels with a target of Rs 390 in therecommend a buy at these levels with a target of Rs 390 in therecommend a buy at these levels with a target of Rs 390 in therecommend a buy at these levels with a target of Rs 390 in therecommend a buy at these levels with a target of Rs 390 in the
next two months. Buy MCX Copper Nov between 365-367 Sl-next two months. Buy MCX Copper Nov between 365-367 Sl-next two months. Buy MCX Copper Nov between 365-367 Sl-next two months. Buy MCX Copper Nov between 365-367 Sl-next two months. Buy MCX Copper Nov between 365-367 Sl-
345 T1-390 T2-415345 T1-390 T2-415345 T1-390 T2-415345 T1-390 T2-415345 T1-390 T2-415
DateDateDateDateDate CountryCountryCountryCountryCountry IndicatorIndicatorIndicatorIndicatorIndicator FFFFForecastorecastorecastorecastorecast PPPPPreviousreviousreviousreviousrevious
1 Nov China Manufacturing PMI - 53.8
US ISM Manufacturing PMI - 54.4
2 Nov Japan Monetary Policy Meeting Minutes - -
3-4 Nov US FOMC Meet - -
US Federal Funds Rate 0-0.25% 0-0.25%
4 Nov EU ECB Press Conference - -
5 Nov US Unemployment Rate - 9.6%
9 Nov GBP Manufacturing Production m/m - -
10 Nov China Trade Balance - -
11 Nov US Federal Budget Balance - -
12 Nov All G-20 Meetings - -
EU German Prelim GDP q/q
US Prelim Consumer Sentiment - -
15 Nov US Retail Sales - -
Important Economic Events November

October 30, 2010
Currency Corner |Currency Corner |Currency Corner |Currency Corner |Currency Corner |
Currencies Weekly Performance Snapshot
The Currency segment witnessed a mixed performance in the
last week with the US Dollar Index (DX) trading on a volatile
note on speculations of the amount of debt-purchases to be
undertaken by the US Federal Reserve. The Euro came under
pressure after PIMCO's CEO; Mohammed El-Erian said that
Greece is likely to default in the next three years, as just deep
cuts in public spending won't be helpful. The European Union
(EU) has projected a budget deficit of 13.6% of GDP in 2009,
but Greece has vowed to reign in its deficit to 11% of GDP in
the next year. However, towards the end of the week, the Euro
pared losses on the back of decline in the dollar against the
other currencies.
The Euro zone M3 money supply figures released indicated
that money supply and private sector loans expanded in
September, but at a slower rate compared to previous figures.
Supply of liquidity increased by 1% in September as against
previous of 1.1% in August and expectations of 1.4%.The Indian
Rupee appreciated slightly in the last week, closing at 44.42
against the dollar on Friday. Sharp gains were not witnessed in
the domestic currency as choppy equities coupled with month-
end dollar demand by importers kept the Rupee under check.
Japan advocates further stimulus..Japan advocates further stimulus..Japan advocates further stimulus..Japan advocates further stimulus..Japan advocates further stimulus..
The Bank of Japan (BOJ) in its monetary policy review last week
maintained interest levels near zero levels. However, the central
bank is also looking for more asset purchase program to the
tune of 5 trillion Yen. The BOJ has scheduled its next policy
meeting in the first week of November, immediately after the
US Federal Reserve's FOMC meet. Hence, it is likely that the
BOJ is thinking of implementing measures only after the Fed's
decision. Japan's finance minister, Yoshihiko Noda said that he
is closely watching the movement in the Yen. Markets are
expecting another big intervention in the forex market if the
Yen breaches 80-mark against the dollar.
British PBritish PBritish PBritish PBritish Pound appreciates on better than expected GDP figures..ound appreciates on better than expected GDP figures..ound appreciates on better than expected GDP figures..ound appreciates on better than expected GDP figures..ound appreciates on better than expected GDP figures..
The British pound appreciated more than 2% against the dollar
in the last week. The currency appreciated mainly on the back
of better than expected GDP growth in the third quarter. UK's
Preliminary GDP figures reported on Tuesday indicated that
the country's economy grew by 0.8% in the third quarter as
against expectations of 0.4%. In the second quarter, UK's
economy had increased by 1.2%. After better than expected
GDP figures yesterday, credit rating agency, S&P spared UK's
downgrade and restored its outlook to "stable" from "negative".
Technical Levels
CurrencyCurrencyCurrencyCurrencyCurrency SupportSupportSupportSupportSupport ResistanceResistanceResistanceResistanceResistance
DX 75.78 78.90
Euro 1.3564 1.4260
INR 44.10 44.99
JPY 79.33 82.53
GBP 1.5534 1.6297
Source: Telequote
Exhibit 2: Spot Rupee Weekly Price Chart
Source: Telequote
Exhibit 1: Currencies Performance
CurrencyCurrencyCurrencyCurrencyCurrency 30th Oct30th Oct30th Oct30th Oct30th Oct 23rd Oct23rd Oct23rd Oct23rd Oct23rd Oct ChgChgChgChgChg %Chg%Chg%Chg%Chg%Chg
DX 77.04 77.37 (0.33) (0.4)
Euro 1.3925 1.3943 (0.001) (0.1)
INR 44.42 44.59 (0.17) (0.4)
JPY 80.43 81.35 (0.92) (1.1)
GBP 1.6038 1.5678 (0.036) 2.3
Source: Telequote
This has reduced expectations that the Bank of England (BOE)
would resort to Quantitative Easing (QE) program similar to
the US Federal Reserve.
Fundamental and Technical Outlook
The much awaited FOMC meeting of the US Federal Reserve is
scheduled on 3rd-4th November. Investors are still cautious
awaiting for the Fed's decision to decide on the amount of debt-
purchases. There is a lot of speculation regarding the amount
of quantitative easing to be undertaken by the US Federal
Reserve. There are expectations of buying assets worth between
$80 billion and $100 billion per month over period of 10
months. This would lead to weakness in the DX and in the
coming week we expect the currency to depreciate. The Rupee
is expected to trade with an appreciation bias and will also
take cues from dollar movement in the international markets.
Research Analyst (Commodity) - Naser Parkar

October 30, 2010
Research Analyst (Commodity) - Nalini Rao/ Naser Parkar
Exhibit 1: Commodities Weekly Performance
30th Oct.30th Oct.30th Oct.30th Oct.30th Oct. 23rd Oct..23rd Oct..23rd Oct..23rd Oct..23rd Oct.. % Change% Change% Change% Change% Change
20102010201020102010 20102010201020102010
Non Agri- Commodities (MCX)Non Agri- Commodities (MCX)Non Agri- Commodities (MCX)Non Agri- Commodities (MCX)Non Agri- Commodities (MCX)
TTTTTop Gainersop Gainersop Gainersop Gainersop Gainers
LNatural Gas 184.50 165.7 11.3
Silver 37003 35176 5.2
TTTTTop Lop Lop Lop Lop Losersosersosersosersosers
Zinc 106.45 112.05 (5.0)
Agri Commodities (NCDEX)Agri Commodities (NCDEX)Agri Commodities (NCDEX)Agri Commodities (NCDEX)Agri Commodities (NCDEX)
TTTTTop Gainersop Gainersop Gainersop Gainersop Gainers
Mentha 1166.3 1060.5 10.0
Black Pepper 21075 19689 7.0
Castor seed 3665 3466.5 5.7
TTTTTop Lop Lop Lop Lop Losersosersosersosersosers
Kapas 714 738.7 (3.3)
Cardamom 880.5 903.2 (2.5)
International Perspective
Commodity prices witnessed volatile trading mainly on the last
session of the week. Natural gas and silver prices rallied on Friday
posting strong gains. However, the base metals pack declined last
week after rallying in the earlier weeks. Copper prices declined
sharply in the initial part of the week, but managed to wipe out
some losses in the later part. A labour talk in the world's No.3
Collahuasi mine in Chile failed and is leading to a possibility of a
strike. The mine produces 535,000 tonnes of copper per year.
Natural gas prices rose sharply in the last week as forecast of
strong heating demand in the US East Coast and the Gulf of Mexico
coast from 3rd - 7th November supported an upside in prices. A
cooler weather in the US in early will boost demand for natural
gas as heating fuel. Prices on the Nymex gained 9.4% in the last
week as this forecast raised hopes of demand. Around 52% house-
holds use natural gas for heating purposes in the US. Latest natu-
ral gas inventory data by the US Energy Department indicated that
inventories rose by 71 billion cubic feet in the week ended 22nd
October. This rise surpassed the five-year average gain for the
week of 45 billion cubic feet. The Energy Information Administra-
tion expects gas demand by the year-end to be 4% higher as com-
pared to that in 2009.
ZincZincZincZincZinc prices came under pressure in the last week as a rise in LME
inventories to a two-month high. This indicates that demand con-
tinues to remain weak, mainly in the US. Although production cuts
in China are rising and indicate tightness in supply, the LME inven-
tory data is not supportive. Due to this, zinc prices could continue
to face downside pressure.
Commodities Update
Agri Perspective
Among the agri commodities, MenthaMenthaMenthaMenthaMentha was the major gainer in the
last week giving 10 percent returns. Lower production and better
demand from the overseas is helping prices to remain firm. BlackBlackBlackBlackBlack
PPPPPepperepperepperepperepper also continued its upward trend due to price supportive
fundamentals. Prices gained by 7 percent due to revival in the
demand from the domestic and overseas buyers. Another reason
which provided support to the Black Pepper prices was lower stocks
with Vietnam, one of the major Black Pepper producer and ex-
porter, till fresh arrivals expected in the month of March next year.
Castor SeedCastor SeedCastor SeedCastor SeedCastor Seed which traded bearish in the last fortnight and stood in
the loser category, surged in last week due to revival in demand
and reduced supplies in the domestic mandis. Gur prices surged
by 3.9 percent on account of improved demand ahead of festi-
vals. Among the major losers, KKKKKapasapasapasapasapas and CardamomCardamomCardamomCardamomCardamom plunged the
most in the previous week by 3.3 percent and 2.5 percent respec-
tively. Kapas prices witnessed profit booking due to increased ar-
rivals. Bumper crop expectations also pressurized Kapas prices at
higher levels. Fresh arrivals of Cardamom in India and Guate-
mala led prices to remain bearish. Further, weak demand in the
domestic market is pressurizing the prices. Jeera prices dipped by
2.2 percent due to expectation of better sowing this year and there-
fore better production. Sowing of jeera commences after Diwali
and harvesting is done in the month of February. This may keep
Jeera prices bearish until demand revives.
Outlook
In this week, we expect gold and silver prices to trade with a posi-
tive bias as the debt-purchases program of the US Federal Reserve
will lead to decline in the dollar, thus helping the precious metal
prices to gain. Copper prices are expected to gain on possibility of
a strike in the Collahuasi in Chile, which is the third-largest copper
mine in the world. Crude oil prices are expected to remain under
pressure in this week on concerns over lower demand from China.
Recent data indicated a slowdown in the oil processing in the coun-
try. The Chinese government's measures to cool the economy would
reduce fuel consumption further.
Among Agri commodities, Guar prices are likely to gain in this
week due to lower availability of quality crop in the domestic mar-
ket. Festive demand from the local stockists may help Chana prices
to trade firm. Black pepper may gain in this week too, due to im-
proved demand from the domestic buyers ahead of festivals and
winter season procurement. Kapas prices may weaken further due
to rising arrival pressure.

October 30, 2010
Sr. Technical Analyst (Commodities) - Samson Pasam
Commodity Technical Report
MCX December Gold MCX December Silver
Last week, Gold prices opened the week at Rs.19,474 per 10
grams, initially made a low of Rs.19,380 levels. Later prices
rallied towards 19,829 levels and Gold prices finally closed
the week sharply higher at Rs.19,807 up by Rs 350 as compared
with previous week's close of Rs.19,457.
Last week, Silver prices opened at Rs.35,180 per kg initially
made a low of 35,169, then moved sharply higher breaking
the initial resistance at 36,590 and made a high of 37,193
and Silver finally ended the week with a huge gain of Rs.1929
to close at Rs.37,105 as compared with previous week's close
of Rs.35,176.
MCX November Crude
Last week, crude prices opened the week at Rs.3652 levels
initially moved higher, but found strong resistance at 3715 levels.
Later prices fell sharply and made a low of 3610 and crude
finally ended the week at Rs.3630 with a loss of Rs.40 as
compared with previous week's close of Rs.3670.
MCX November Copper
Last week, copper prices opened the week at Rs.375.50 initially
moved sharply higher, but found good resistance at Rs.382.40
levels. Later prices fell sharply lower towards 365.90 levels and
copper prices finally closed the week at Rs.369.10 down by Rs
6.7 as compared with previous week's close of Rs.375.80
KKKKKey Ley Ley Ley Ley Levels Fevels Fevels Fevels Fevels For Wor Wor Wor Wor Week :eek :eek :eek :eek :
S1 - 19,584 R1 - 19,977S1 - 19,584 R1 - 19,977S1 - 19,584 R1 - 19,977S1 - 19,584 R1 - 19,977S1 - 19,584 R1 - 19,977
S2 - 19,235 R2 - 20,190S2 - 19,235 R2 - 20,190S2 - 19,235 R2 - 20,190S2 - 19,235 R2 - 20,190S2 - 19,235 R2 - 20,190
S1 - 36,305 R1 - 37,845S1 - 36,305 R1 - 37,845S1 - 36,305 R1 - 37,845S1 - 36,305 R1 - 37,845S1 - 36,305 R1 - 37,845
S2 - 35,286 R2 - 38,670S2 - 35,286 R2 - 38,670S2 - 35,286 R2 - 38,670S2 - 35,286 R2 - 38,670S2 - 35,286 R2 - 38,670
Source: TelequoteSource: Telequote
Trend : UP (MCX GOLD Weekly Chart) Trend : UP (MCX SILVER Weekly Chart)
S1 - 363.0 R1 - 373.40S1 - 363.0 R1 - 373.40S1 - 363.0 R1 - 373.40S1 - 363.0 R1 - 373.40S1 - 363.0 R1 - 373.40
S2 - 356.0 R2 - 383.0S2 - 356.0 R2 - 383.0S2 - 356.0 R2 - 383.0S2 - 356.0 R2 - 383.0S2 - 356.0 R2 - 383.0
S1 - 3590 R1 - 3695S1 - 3590 R1 - 3695S1 - 3590 R1 - 3695S1 - 3590 R1 - 3695S1 - 3590 R1 - 3695
S2 - 3530 R2 - 3760S2 - 3530 R2 - 3760S2 - 3530 R2 - 3760S2 - 3530 R2 - 3760S2 - 3530 R2 - 3760
Recommended Strategy: Neutral.Recommended Strategy: Neutral.Recommended Strategy: Neutral.Recommended Strategy: Neutral.Recommended Strategy: Neutral.
Source: Telequote
Trend : SIDEWAYS (MCX CRUDEOIL Weekly Chart)
Recommended Strategy: Buy MCX Silver December in the range of 36350-Recommended Strategy: Buy MCX Silver December in the range of 36350-Recommended Strategy: Buy MCX Silver December in the range of 36350-Recommended Strategy: Buy MCX Silver December in the range of 36350-Recommended Strategy: Buy MCX Silver December in the range of 36350-
36300 with strict stop36300 with strict stop36300 with strict stop36300 with strict stop36300 with strict stop-loss below 35700 T-loss below 35700 T-loss below 35700 T-loss below 35700 T-loss below 35700 Targeting initially 37700 andargeting initially 37700 andargeting initially 37700 andargeting initially 37700 andargeting initially 37700 and
then 38400.then 38400.then 38400.then 38400.then 38400.
Recommended Strategy: Sell MCX Copper November in the range ofRecommended Strategy: Sell MCX Copper November in the range ofRecommended Strategy: Sell MCX Copper November in the range ofRecommended Strategy: Sell MCX Copper November in the range ofRecommended Strategy: Sell MCX Copper November in the range of
373-375 with strict stop373-375 with strict stop373-375 with strict stop373-375 with strict stop373-375 with strict stop-loss above 382 T-loss above 382 T-loss above 382 T-loss above 382 T-loss above 382 Targeting initially 363 and thenargeting initially 363 and thenargeting initially 363 and thenargeting initially 363 and thenargeting initially 363 and then
357.357.357.357.357.
Source: Telequote
Trend : SIDEWAYS (MCX COPPER Weekly Chart)
Recommended Strategy: Buy in the range of 19660-19620 with strictRecommended Strategy: Buy in the range of 19660-19620 with strictRecommended Strategy: Buy in the range of 19660-19620 with strictRecommended Strategy: Buy in the range of 19660-19620 with strictRecommended Strategy: Buy in the range of 19660-19620 with strict
stopstopstopstopstop-loss below 19400 T-loss below 19400 T-loss below 19400 T-loss below 19400 T-loss below 19400 Targeting initially 19970 and then 20100.argeting initially 19970 and then 20100.argeting initially 19970 and then 20100.argeting initially 19970 and then 20100.argeting initially 19970 and then 20100.

Weekly Review
Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
Reduce (-5% to -15%) Sell (< -15%)
Ratings (Returns) :
Disclaimer
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision.
Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations
as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document
(including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment.
Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment
decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are
those of the analyst, and the company may or may not subscribe to all the views expressed within.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading
volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources
believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for
general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or
damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not
independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or
warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to
update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent
us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed
or passed on, directly or indirectly.
Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other
advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past.
Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
connection with the use of this information.
Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latestNote: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latestNote: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latestNote: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latestNote: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest
update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investmentupdate on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investmentupdate on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investmentupdate on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investmentupdate on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment
positions in the stocks recommended in this report.positions in the stocks recommended in this report.positions in the stocks recommended in this report.positions in the stocks recommended in this report.positions in the stocks recommended in this report.

Weekly Review
Address: Acme Plaza, ‘A’ Wing, 3rd Floor, M.V. Road, Opp. Sangam Cinema, Andheri (E), Mumbai - 400 059.
Tel : (022) 3952 4568 / 4040 3800
Angel Broking Ltd: BSE Sebi Regn No : INB 010996539 / CDSL Regn No: IN - DP - CDSL - 234 - 2004 / PMS Regn Code: PM/INP000001546 Angel Securities Ltd:BSE: INB010994639/INF010994639 NSE: INB230994635/INF230994635 Membership numbers: BSE 028/NSE:09946
Angel Capital & Debt Market Ltd: INB 231279838 / NSE FNO: INF 231279838 / NSE Member code -12798 Angel Commodities Broking (P) Ltd: MCX Member ID: 12685 / FMC Regn No: MCX / TCM / CORP / 0037 NCDEX : Member ID 00220 / FMC Regn No: NCDEX / TCM / CORP / 0302
Research Team
Fundamental:
Sarabjit Kour Nangra VP-Research, Pharmaceutical sarabjit@angelbroking.com
Vaibhav Agrawal VP-Research, Banking vaibhav.agrawal@angelbroking.com
Vaishali Jajoo Automobile vaishali.jajoo@angelbroking.com
Shailesh Kanani Infrastructure, Real Estate shailesh.kanani@angelbroking.com
Anand Shah FMCG , Media anand.shah@angelbroking.com
Deepak Pareek Oil & Gas deepak.pareek@angelbroking.com
Sushant Dalmia Pharmaceutical sushant.dalmia@angelbroking.com
Rupesh Sankhe Cement, Power rupeshd.sankhe@angelbroking.com
Param Desai Real Estate, Logistics, Shipping paramv.desai@aangelbroking.com
Sageraj Bariya Fertiliser, Mid-cap sageraj.bariya@angelbroking.com
Paresh Jain Metals & Mining pareshn.jain@angelbroking.comAmit
Rane Banking amitn.rane@angelbroking.com
John Perinchery Capital Goods john.perinchery@angelbroking.com
Srishti Anand IT, Telecom srishti.anand@angelbroking.com
Jai Sharda Mid-cap jai.sharda@angelbroking.com
Sharan Lillaney Mid-cap sharanb.lillaney@angelbroking.com
Naitik Mody Mid-cap naitiky.mody@angelbroking.com
Amit Vora Research Associate (Oil & Gas) amit.vora@angelbroking.com
V Srinivasan Research Associate (Cement, Power) v.srinivasan@angelbroking.com
Mihir Salot Research Associate (Logistics, Shipping) mihirr.salot@angelbroking.com
Chitrangda Kapur Research Associate (FMCG, Media) chitrangdar.kapur@angelbroking.com
Pooja Jain Research Associate (Metals & Mining) pooja.j@angelbroking.com
Yaresh Kothari Research Associate (Automobile) yareshb.kothari@angelbroking.com
Shrinivas Bhutda Research Associate (Banking) shrinivas.bhutda@angelbroking.com
Sreekanth P.V.S Research Associate (FMCG, Media) sreekanth.s@angelbroking.com
Hemang Thaker Research Associate (Capital Goods) hemang.thaker@angelbroking.com
Nitin Arora Research Associate (Infra, Real Estate) nitin.arora@angelbroking.com
Technicals:
Shardul Kulkarni Sr. Technical Analyst shardul.kulkarni@angelbroking.com
Mileen Vasudeo Technical Analyst vasudeo.kamalakant@angelbroking.com
Derivatives:
Siddarth Bhamre Head - Derivatives siddarth.bhamre@angelbroking.com
Jaya Agarwal Derivative Analyst jaya.agarwal@angelbroking.com
Institutional Sales Team:
Mayuresh Joshi VP - Institutional Sales mayuresh.joshi@angelbroking.com
Abhimanyu Sofat AVP - Institutional Sales abhimanyu.sofat@angelbroking.com
Nitesh Jalan Sr. Manager niteshk.jalan@angelbroking.com
Pranav Modi Sr. Manager pranavs.modi@angelbroking.com
Sandeep Jangir Sr. Manager sandeepp.jangir@angelbroking.com
Ganesh Iyer Sr. Manager ganeshb.Iyer@angelbroking.com
Jay Harsora Sr. Dealer jayr.harsora@angelbroking.com
Meenakshi Chavan Dealer meenakshis.chavan@angelbroking.com
Gaurang Tisani Dealer gaurangp.tisani@angelbroking.com
Production Team:
Bharathi Shetty Research Editor bharathi.shetty@angelbroking.com
Simran Kaur Research Editor simran.kaur@angelbroking.com
Bharat Patil Production bharat.patil@angelbroking.com
Dilip Patel Production dilipm.patel@angelbroking.com

Weekly review 30-10-10

More Related Content

What's hot

Viewers also liked

Similar to Weekly review 30-10-10

More from Angel Broking

Recently uploaded

Weekly review 30-10-10