Market Outlook

India Research
October 31, 2011

Dealers Diary
The Indian markets are expected to open sideways on the back of mixed cues from Asian, European as well as US markets. Asian stocks witnessed softened opening, with the move paring monthly gains made ahead of Europes latest attempt to stem its sovereign-debt crisis. The US markets closed with flattish cues on Friday, with traders taking a breather following the rally seen in the previous session. The major averages bounced back and forth across the unchanged line before ending the session mixed. The coming week's (November 3rd & 4th) G-20 meeting will essentially be watched for coordinated efforts or pledges to help stabilize world financial markets, which have been battered this year by the euro zone debt crisis and a slowing world economy. A more specific issue, however, will be the extent to which China and other countries with large fiscal surpluses are willing to fund the euro zone's rescue fund.

Domestic Indices BSE Sensex Nifty MID CAP SMALL CAP BSE HC BSE PSU BANKEX AUTO METAL OIL & GAS BSE IT Global Indices Dow Jones NASDAQ FTSE Nikkei Hang Seng Straits Times Shanghai Com

Chg (%) 3.0 3.1 1.5 0.9 1.5 2.4 3.7 2.9 6.3 2.2 1.4 Chg (%) 0.2 (0.1) (0.2) 1.4 1.7 2.0 1.6

(Pts) 158.9 93.3 60.6 89.3 180.9 267.1 194.8 78.0 (Pts) (1.5) (11.6) 123.9 58.2 37.8

(Close) 5,361 6,275 6,960 6,171 7,616 9,571 9,179 5,830 (Close) 2,737 5,702 9,050 2,906 2,473

516.0 17,805

408.9 11,372 723.9 12,143

The Indian markets would be watching out for monthly external trade (due on November 1) and Purchasing Managers Index data (Manufacturing PMI due on November 1 and Services PMI expected on November 5).

22.6 12,231

Markets Today
The trend deciding level for the day is 17,795 / 5,361 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17,918 18,031 / 5,399 5,438 levels. However, if NIFTY trades below 17,795 / 5,361 levels for the first half-an-hour of trade then it may correct up to 17,681 17,558 / 5,322 5,284 levels.
Indices SENSEX NIFTY S2 17,558 5,284 S1 17,681 5,322 R1 17,918 5,399 R2 18,031 5,438

330.5 20,019

Indian ADRs Infosys Wipro ICICI Bank HDFC Bank

Chg (%) (1.0) 2.9 2.2 (0.1)

(Pts) (0.6) 0.3 0.9 (0.0)

(Close) $60.2 $10.8 $38.9 $32.4

News Analysis
2QFY2012 Result Reviews Maruti Suzuki, IOB, Electrosteel Castings, JK Lakshmi Cement, Tata Sponge, CCCL 2QFY2012 Result Previews ICICI Bank, NMDC, Wipro, HUL, BoB, Canara Bank, Dabur, Colgate, OBC, Indian Bank, Corporation Bank, UCO Bank, J&K Bank, IPCA Labs, Vijaya Bank, Dena Bank, United Bank of India Discontinuation of coverage
Refer detailed news analysis on the following page

Advances / Declines Advances Declines Unchanged

BSE 1,728 1,139 92

NSE 971 489 53

Net Inflows (October 25, 2011)

` cr FII MFs ` cr Index Futures Stock Futures Purch 3,689 773 Sales 3,234 795 Purch 3,368 2,484 Gainers Company Price (`) chg (%) Company Net 455 (22) Sales 2,149 2,011 Net 1,218 473 MTD (373) (55) YTD (2,327) 5,442 Open Interest 15,540 28,227 Losers Price (`) chg (%)

Volumes (` cr) BSE NSE 2,513 14,329

FII Derivatives (October 28, 2011)

Gainers / Losers

Hindalco Inds JSW Steel Reliance Infra IVRCL LTD Sterlite Inds

142 664 465 41 133

10.9 9.9 9.7 9.2 8.8

Indiabulls Fin BPCL Areva T&D Maruti Suzuki JUBL FOOD

157 638 218 1,128 841

(4.4) (2.9) (2.4) (2.0) (1.9) Sebi Registration No: INB 010996539

Please refer to important disclosures at the end of this report

Market Outlook | India Research

Result Reviews Maruti Suzuki

For 2QFY2012, Maruti Suzuki (MSIL) reported an extremely poor performance, which was significantly lower than our as well as consensus estimates. The companys net sales reported in-line 14.4% yoy (8.2% qoq) decline to `7,832cr. The top-line performance was negatively affected by labor problems at the Manesar plant during the quarter, resulting in loss of 28,539 units. Led by labor problems at the Manesar plant and weak demand for passenger cars, total volumes witnessed a decline of 19.6% yoy (10.4% qoq). Average net realization, however, witnessed a 4.8% yoy (1.1% qoq) improvement, led by price increases and better product mix (higher share of diesel cars). MSILs EBITDA margin declined substantially by 419bp yoy (324bp qoq) to 6.3% on account of negative effect of operating leverage, higher discounts, appreciating Yen and high promotional expenses. While Yen appreciation resulted in higher royalty outgo, thereby affecting the margin by 50bp yoy (120bp qoq), higher advertising expenses led to a 90bp yoy (100bp qoq) contraction in margin. Other manufacturing expenses coupled with higher discounts accounted for the balance decline in operating margin. As a result, operating profit dipped by 48.5% yoy (39.3% qoq) to `494cr. Led by poor operating performance and lower-thanexpected other income, net profit witnessed a sharp 59.8% yoy (56.2% qoq) decline to `240cr. At the CMP of `1,128, MSIL is trading at 13.1x FY2013E earnings. Our rating is currently under review and we shall come up with a detailed update post the conference call with management.

Indian Overseas Bank

For 2QFY2012, Indian Overseas Bank (IOB) reported a weak set of results with net profit growing by muted 0.6% yoy, well below ours as well as streets expectation, due to higher provisioning charges. Profit growth was also aided by a lower effective tax rate (of 23.3%). During 2QFY2012, the business momentum for the bank was stronger than the industrys, with sequential advances and deposits growth of 4.5% (up 44.2% yoy) and 8.2% (up 38.5% yoy), respectively. Calculated NIM in 2QFY2012 was flat compared to 1QFY2012, while CASA ratio witnessed a 10bp qoq decline to 27.5% in 2QFY2012. The banks asset quality deteriorated significantly during 2QFY2012, with provisioning charges increasing by 108.6% yoy to `636cr. For 2QFY2012, gross NPA ratio stood at 3.1% (2.8% in 1QFY2012) and net NPA ratio stood at 1.2% (1.1% in 1QFY2012). The bank had migrated only accounts worth `50lakhs to system-based NPA recognition system till 1QFY2012 and, hence, a decline in asset quality was always on cards. Provision coverage ratio (including technical write-offs) weakened by ~173bp qoq to 71.8%. At the CMP, the stock is trading at 0.6x FY2013E ABV. We maintain our Neutral recommendation on the stock.
October 31, 2011

Market Outlook | India Research

Electrosteel Castings
Electrosteel Castings reported its 2QFY2012 results. The company's net sales increased by 8.3% yoy to `456cr. However, its raw-material cost also increased by 29.8% yoy to `273cr in 2QFY2012. Hence, EBITDA decreased by 40.8% yoy to `45cr. Interest expense grew by 45.9% yoy to `15cr, while other income decreased by 23.0% yoy to `3cr. Tax rate decreased to 5.0% in 2QFY2012, compared to 32.0% in 2QFY2011. Hence, net profit decreased by 49.8% yoy to `19cr in 2QFY2012. The stock is under review currently.

JK Lakshmi Cement
During 2QFY2012, JK Lakshmi Cement (JKLC) reported 33.2% yoy top-line growth to `354cr. The companys dispatches rose by healthy 29.9% yoy to 1.13mn tonnes and realization improved by 2.5% yoy to `3,142/tonne. Operating margin improved by 121bp yoy to 11.6%, aided by better realization. JKLCs operating profit rose by 48.6% during the quarter. However, the companys bottom line rose by lower 12.7% yoy to `6.5cr. The lower growth in the bottom line was on account of higher depreciation (up 37.7% yoy), interest (up 79.6% yoy) and tax expenses (`1.4cr in 2QFY2012 vs. negative tax of 1.7cr in 2QFY2011). We maintain our Buy rating on the stock; the target price is under review.

Tata Sponge Iron

Tata Sponge Iron Ltd.s (TSIL) revenue remained flat yoy at `174cr in 2QFY2012 as compared to `175cr in 2QFY2011; while on a qoq basis, revenue increased by 19.2% from `146cr in 1QFY2012. Sponge iron production was hampered in the previous quarter due to iron ore supply issues. The companys EBITDA margin came in at 17.2% for 2QFY2012, up 802bp yoy from 9.2% in 2QFY2011, due to lower raw-material prices. Profit for the quarter stood at `22cr as compared to `10cr in 2QFY2011. We maintain our Buy recommendation on the stock with a target price of `429, based on a target PE of 6x for FY2013E.

CCCL
Consolidated Construction Consortium Ltd. (CCCL) posted a dismal set of numbers once again for 2QFY2012. The companys top line grew by 9.5% yoy to `535.8cr (`489.5cr), above our estimate of `465.0cr. However, a major disappointment came on the margin front, as CCCL posted abysmal EBITDA margin of 1.4% (7.8%), reporting a drop of 640bp yoy, against our expectation of 5.2%. On a sequential basis as well, the companys margin witnessed a decline of 340bp. The decline in margin can mainly be attributed to commodity price pressures, along with increased employee cost and labor cost. Further, on the bottom-line front, the company posted loss of `18.7cr vs. profit of `13.7cr in 2QFY2011 and against our expectation of `1.4cr profit, mainly on account of lower margin and higher interest cost (`17.2cr, a jump of 42.1%/11.3% yoy/qoq). CCCL reported an order inflow of `321cr during the quarter, taking its
October 31, 2011

Market Outlook | India Research

outstanding order book to `5,936cr. The company has been disappointing on the earnings front and posting erratic margins since the last few quarters. Hence, we maintain our Neutral view on the stock.

Result Previews ICICI Bank

ICICI Bank is slated to announce its 2QFY2012 results. We expect the bank to report net interest income growth of 13.3% yoy (up 3.6% qoq) to `2,497cr. Noninterest income is expected to grow by 10.9% yoy and 6.5% qoq to `1,750cr. Costto-income ratio is expected to improve from 44.9% in 1QFY2012 to 43.8% in 2QFY2012. Pre-provision profit of the bank is expected to increase by 7.9% yoy and 6.8% qoq to `2,387cr. However, net profit is expected to increase by healthy 10.5% qoq and 19.1% yoy to `1,473cr on account of lower provisioning expenses (expected to decline by 40.8% yoy and 16.4% qoq). At the CMP, the stock is trading at valuations of 1.7x FY2013E ABV (without adjusting value of subsidiaries). We maintain our Buy rating on the stock with a target price of `1,102.

NMDC
NMDC is slated to announce its 2QFY2012 results. We expect the companys top line to grow by 18.6% yoy to `2,917cr on account of increased sales volumes as well as realizations. The companys EBITDA margin is expected to improve by 519bp yoy to 80.0%. The bottom line is expected to grow by 33.7% yoy to `1,844cr. We recommend Neutral on the stock.

Wipro
Wipro is slated to announce its 2QFY2012 results. We expect the companys IT services segment to post revenue of US$1,436mn (including revenue from SAIC), up merely 2.0% qoq. Volume growth is expected to be 2.4% qoq. At the consolidated level, we expect the company to record revenue of `8,923cr, up 4.2% qoq. The company is expected to record a 329bp qoq decline in its EBIT margin to 18.7% for the IT services segment as the full impact of wage hikes given from June 1, 2011, will flow in this quarter. At a consolidated level, Wipro is expected to record a 251bp qoq decline in its EBIT margin to 15.0%. PAT is expected to come in at `1,225cr. We maintain our Neutral rating on the stock.

HUL
HUL is expected to announce its 2QFY2012 results. We expect the company to report impressive yoy growth of 14.2% in its revenue to `5,345cr, led by a mix of volume growth, price hikes and improved product mix. We expect the company to post a 55bp yoy expansion in its operating margin to 12.6%. The company is
October 31, 2011

Market Outlook | India Research

expected to report earnings growth of 14% yoy, led by the top line growing to `599cr. We maintain our Neutral view on the stock.

Bank of Baroda
Bank of Baroda is scheduled to announce its 2QFY2012 results. We expect the bank to report healthy net interest income growth of 14.8% yoy to `2,341cr. Noninterest income, however, is expected to grow at a flat rate of 0.3% yoy. The bank has already switched over all its accounts to system-based NPA recognition and, hence, we expect a sequential 21.7% decline in provisioning expenses to `316cr. Net profit is expected to increase by 6.8% yoy and 5.4% qoq to `1,088cr. At the CMP, the stock is trading at 1.0x FY2013E ABV. We recommend Buy on the stock with a target price of `871.

Canara Bank
Canara Bank is scheduled to announce its 2QFY2012 results. We expect the bank to report a 7.8% yoy decline in its net interest income to `1,846cr. Non-interest income, however, is expected to increase by healthy 28.1% yoy to `640cr. Operating income growth is expected to decline marginally by 0.6% yoy; however, a lower 0.2% yoy rise in operating expenses is expected to lead to an improvement in its cost-to-income ratio to 43.8%. The bank has switched over accounts worth `2lakhs and above already to system-based NPA recognition. The remaining transformation had to be completed by September 2011, the effect of which is expected to show in 2QFY2012 results. Provisioning expenses are expected to rise sharply by 90.8% yoy to `301cr. Consequently, net profit is expected to decline by 14.1% yoy (up by strong 19.3 qoq) to `866cr. At the CMP, the stock is trading at 0.9x FY2013E ABV. We maintain our Neutral recommendation on the stock.

Dabur
Dabur is slated to announce its 2QFY2012 numbers. For the quarter, we expect the company to post robust growth of 23.5% yoy in its consolidated top line to `1,202cr, driven by steady growth in its core brands. The bottom line is expected to register slow growth of 8.6% yoy to `173cr, aided by margin contraction of 189bp yoy to 18.6%. We maintain our Accumulate recommendation on the stock with a target price of `115.

Colgate
Colgate is expected to announce its 2QFY2012 results. For the quarter, we expect the company to post modest 13.2% yoy growth in its top line to `625cr, aided by a mix of value and volume growth. Earnings for the quarter are expected to register 7.2% yoy growth to `108cr, aided by margin contraction of 33bp yoy to 20%. We maintain our Neutral view on the stock.

October 31, 2011

Market Outlook | India Research

Oriental Bank of Commerce

Oriental Bank of Commerce is scheduled to announce its 2QFY2012 results. The banks NII is expected to decline by 4.7% yoy (flat qoq) to `1,026cr. Other income is expected to increase by healthy 19.0% yoy to `255cr. Operating expenses are expected to increase by 10.4% yoy (decline 0.9% qoq) to `536cr and pre-provision profit is expected to decline by 7.6% yoy and 7.1% qoq to `745cr. We expect the banks net profit growth to decline by 18.5% yoy (sequential decline of 8.6%) to `324cr. The bank has already switched over accounts worth `10lakhs and above to system-based NPA recognition. The remaining transformation had to be completed by September 2011, the effect of which is expected to show in 2QFY2012 results. At the CMP, the stock is trading at 0.7x FY2013E P/ABV. We recommend a Neutral rating on the stock.

Indian Bank
Indian Bank is scheduled to announce its 2QFY2012 results. The bank is expected to post net interest income growth of 6.1% yoy to `1,043cr. Non-interest income is expected to decline by 8.5% yoy to `259cr. Operating expenses are expected to decline by 3.3% yoy (up 2.5% sequentially) to `511cr. Pre-provision profit is expected to increase by 7.2% yoy to `792cr. The bank has already switched over all its accounts to system-based NPA recognition and, hence, we expect a sequential 4.3% decline (up 27.3% yoy) in provisioning expenses to `169cr. Net profit is expected to increase marginally by 1.2% yoy (up 3.4% qoq) to `421cr. At the CMP, the stock is trading at valuations of 0.8x FY2013E ABV. We maintain our Accumulate view on the stock with a target price of `220.

Corporation Bank
Corporation Bank is slated to announce its 2QFY2012 results. We expect calculated NIM to remain flat sequentially and consequently expect net interest income to register marginal 1.7% qoq growth for 2QFY2012. Other income is expected to increase strongly by 33.1% yoy to `301cr. On a yoy basis, preprovision profit is expected to register only moderate growth of 3.0% yoy, as operating expenses are expected to rise by 16.8% yoy. Provisioning expenses are expected to increase sharply by 40.8% yoy (decline of 17.8% qoq) to `137cr, resulting in a marginal decline of 0.8% in net profit to `349cr. At the CMP, the stock is trading at 0.7x FY2013E ABV. We have a Buy rating on the stock with a target price of `489.

UCO Bank
UCO Bank is expected to announce its 2QFY2012. We expect the bank to report a 20.6% yoy decline in its net interest income to `795cr. Non-interest income, however, is expected to post growth of 8.4% yoy to `249cr. Operating income is expected to decline by 15.2% yoy. Operating expenses are expected to decline by 4.8% yoy (up 6.2% qoq) to `502cr. Due to a higher decline in operating income
October 31, 2011

Market Outlook | India Research

than operating expenses, the banks cost-to-income ratio is expected to deteriorate to 48.1% compared to 42.8% in 2QFY2011. The bank has only switched over accounts worth `50lakhs and above to system-based NPA recognition. The remaining transformation had to be completed by September 2011, the effect of which is expected to show in 2QFY2012 results. Provisioning expenses are expected to increase by 6.9% qoq (down 42.9% yoy due to a high base) to `331cr. Net profit is expected to increase by 59.3% yoy (down 35.1% qoq) to `190cr. At the CMP, the stock is trading at 0.9x FY2013E ABV. We recommend a Reduce rating on the stock with a target price of `66.

Jammu and Kashmir Bank

Jammu and Kashmir Bank is scheduled to announce its 2QFY2012 results. We expect the bank to report net interest income growth of 14.2% yoy to `426cr. Noninterest income is expected to be flat at `75cr. Cost-to-income ratio is expected to be at 39.3% compared to 37.3% in 1QFY2012 and 36.4% in 2QFY2011. The bank has already converted all its accounts to system-based NPA recognition and, hence, we expect only a 7.2% yoy rise in provisioning expenses (decline of 6.4% qoq) to `42cr. Net profit is expected to increase by 8.5% on a yoy basis to `177cr. At the CMP, the stock is trading at valuations of 0.9x FY2013E P/ABV. We maintain our Neutral rating on the stock.

IPCA Labs
For 2QFY2012, we estimate IPCA Labs top line to grow by 23.6% to `530cr. OPM for the quarter is expected to decline by 580bp yoy to 17.7%, led by higher other expenses. Adjusted net profit for the quarter is expected to decline by 2.2% yoy. At the CMP, the stock is trading at 11.9x FY2012E and 8.7x FY2013E earnings, respectively. We maintain our Buy recommendation on the stock with a target price of `358.

Vijaya Bank
Vijaya Bank is scheduled to announce its 2QFY2012 results. The banks net interest income is expected to decline by 10.9% yoy (up 2.6% qoq) to `434cr. Other income is expected to increase moderately by 2.0% yoy to `120cr. Operating expenses are expected to increase by 4.4% yoy (up 21.3% qoq) to `323cr, while pre-provision profit is expected to decline by 21.7% yoy and 28.9% qoq to `232cr. The bank has already switched over all its accounts to systembased NPA recognition and, hence, we expect a sequential 54.1% decline (up 4.6% yoy) in provisioning expenses to `106cr. Net profit is expected to decline substantially by 34.9% yoy (up by strong 30.1% qoq) to `94cr. At the CMP, the stock is trading at 0.8x FY2013E P/ABV. We recommend a Neutral rating on the stock.

October 31, 2011

Market Outlook | India Research

Dena Bank
Dena Bank is slated to declare its 2QFY2012 results. The bank is expected to post a decline of 3.7% yoy in its net interest income to `448cr. However, other income is expected to increase by 9.2% yoy. Pre-provision profit is expected to decline by 6.8% yoy to `303cr. The bank has only switched over accounts worth `50lakhs and above to system-based NPA recognition. The remaining transformation had to be completed by September 2011, the effect of which is expected to show in 2QFY2012 results. Hence, we expect provisioning expenses to rise sharply by 113.0% yoy to `155cr. Consequently, we expect net profit to decline substantially by 37.6% yoy to `100cr. At the CMP, the stock is trading at 0.6x FY2013E ABV. We maintain our Neutral recommendation on the stock.

United Bank
United Bank is scheduled to announce its 2QFY2012 results. The bank is expected to post net interest income growth of 8.2% yoy to `570cr. Non-interest income is expected to decline by 19.8% yoy to `122cr. Operating expenses are expected to rise by 10.2% yoy (up 10.8% sequentially) to `356cr. Pre-provision profit is expected to decrease by 5.5% yoy to `335cr. The bank has already switched over all its accounts to system-based NPA recognition and, hence, we expect a sequential 18.3% decline (down 18.3% yoy) in provisioning expenses to `178cr. Net profit is expected to increase marginally by 0.2% yoy (down 17.0% qoq) to `110cr. At the CMP, the stock is trading at valuations of 0.6x FY2013E ABV. We recommend an Accumulate rating on the stock with a target price of `82.

Discontinuation of coverage
We have discontinued coverage on the following stocks: Bayer Cropscience, Jain Irrigation, Denso India, Elecon Engg., TIL, McNally Bharat, Grasim Ind., Kesoram, Hotel Leela, Everonn, 3i Infotech, Educomp, Deccan Chronicle, Polyplex, Balrampur Chini, Surya Roshni, Essel Propack, Bajaj Hindusthan, Philips Carbon, Piramal Health, Gateway Distriparks, Container Corp., GE Shipping, ABG Shipyard and Allcargo Global.

October 31, 2011

Market Outlook | India Research

Quarterly Bloomberg Brokers Consensus Estimates

Bank of Baroda Ltd. (31/10/2011)
Particulars (` cr) Net profit
Source: Bloomberg

Q2 FY12E 1,077

Q2 FY11 y-o-y (%) 1,019 5.6

Q1 FY12 q-o-q (%) 1,033 4.2

BPCL Ltd. (31/10/2011)

Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit
Source: Bloomberg

Q2 FY12E 47,168 (96) (0) 2

Q2 FY11 y-o-y (%) 35,416 2,487 7 2,142 (99.9) 33.2 (103.9)

Q1 FY12 q-o-q (%) 46,118 (2,164) (5) (2,562) (100.1) 2.3 (95.6)

Dabur India Ltd. - Consolidated (31/10/2011)

Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit
Source: Bloomberg

Q2 FY12E 1,257 232 18 175

Q2 FY11 y-o-y (%) 973 208 21 160 9.4 29.2 11.2

Q1 FY12 q-o-q (%) 1,205 179 15 128 37.3 4.4 29.6

Hindustan Unilever Ltd. (31/10/2011)

Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit
Source: Bloomberg

Q2 FY12E 5,369 711 13 587

Q2 FY11 y-o-y (%) 4,681 647 14 566 3.6 14.7 9.8

Q1 FY12 q-o-q (%) 5,504 754 14 627 (6.5) (2.4) (5.8)

Wipro Ltd. - Consolidated (31/10/2011)

Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit
Source: Bloomberg

Q2 FY12E 8,953 1,689 19 1,311

Q2 FY11 y-o-y (%) 7,731 1,611 21 1,285 2.0 15.8 4.8

Q1 FY12 q-o-q (%) 8,564 1,729 20 1,335 (1.8) 4.5 (2.3)

ICICI Bank Ltd. (31/10/2011)

Particulars (` cr) Net profit
Source: Bloomberg

Q2 FY12E 1,420

Q2 FY11 y-o-y (%) 1,236 14.9

Q1 FY12 q-o-q (%) 1,332 6.6

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Market Outlook | India Research

NMDC Ltd. - Consolidated (31/10/2011)

Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit
Source: Bloomberg

Q2 FY12E 2,625 1,966 75 1,679

Q2 FY11 y-o-y (%) 2,460 1,840 75 1,379 21.8 6.7 6.8

Q1 FY12 q-o-q (%) 2,783 2,255 81 1,801 (6.8) (5.7) (12.8)

ACC Ltd. - Consolidated (01/11/2011)

Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit
Source: Bloomberg

Q3 CY11E 2,314 369 16 227

Q3 CY10 y-o-y (%) 1,759 218 12 86 162.9 31.5 69.6

Q2 CY11 q-o-q (%) 2,539 578 23 328 (30.8) (8.9) (36.2)

Ambuja Cement Ltd. (01/11/2011)

Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit
Source: Bloomberg

Q3 CY11E 1,860 355 19 213

Q3 CY10 y-o-y (%) 1,564 302 19 152 40.2 18.9 17.6

Q2 CY11 q-o-q (%) 2,173 598 28 348 (38.6) (14.4) (40.6)

Essar Oil Ltd. (01/11/2011)

Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit
Source: Bloomberg

Q2 FY12E 11,961 688 6 248

Q2 FY11 y-o-y (%) 10,909 497 5 130 90.6 9.6 38.4

Q1 FY12 q-o-q (%) 149,460 928 1 469 (47.2) (92.0) (25.9)

HPCL Ltd. (01/11/2011)

Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit
Source: Bloomberg

Q2 FY12E 41,929 (184) (0) (228)

Q2 FY11 y-o-y (%) 30,710 2,483 8 2,090 (110.9) 36.5 (107.4)

Q1 FY12 q-o-q (%) 40,798 (2,568) (6) (3,080) (92.6) 2.8 (92.9)

Punjab National Bank Ltd. (01/11/2011)

Particulars (` cr) Net profit
Source: Bloomberg

Q2 FY12E 1,150

Q2 FY11 y-o-y (%) 1,075 7.0

Q1 FY12 q-o-q (%) 1,105 4.1

October 31, 2011

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Market Outlook | India Research

Economic and Political News

Import curbs on China likely as deficit grows Draft Pharma policy balances act between consumer, industry IRDA may end third party insurance pool Mandatory regassified-LNG to increase power costs

Corporate News
RIL says drop in D6 gas fields output irreversible IOB may open fourteen branches abroad NMDC may bid for Russias Vincy Coal ISPAT hopes checked, JSW says setback temporary
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint

Results Calendar
ICICI Bank, NMDC, Wipro, HUL, Bank of Baroda, BPCL, Canara Bank, Dabur India, Colgate, Indian Bank, Oriental Bank, Corporation Bank, UCO Bank, Ipca labs, J & K Bank, Vijaya Bank, Dena Bank, United Bank, LMW, Greenply, Subros 01/11/2011 Punjab Natl. Bank, Ambuja Cements, ACC, HPCL, Essar Oil, Divi's Lab., Central Bank, Bajaj Electrical, Orchid Chemicals 31/10/2011 02/11/2011 Allahabad Bank, Andhra Bank, Taj GVK 03/11/2011 SAIL, Sun TV Network, Ashok Leyland, Gujarat Gas, TVS Motor 04/11/2011 ONGC, Bharti Airtel, Nestle, GSK Pharma, GlaxoSmith Con, Marico, Nagarjuna Const. 05/11/2011 Motherson Sumi

October 31, 2011

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Market Outlook | India Research

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

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October 31, 2011

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