Weekly Review 27-11-10

8/8/2019 Weekly Review 27-11-10

1/17

Please refer to important disclosures at the end of this report

WWWWWeekly Revieweekly Revieweekly Revieweekly Revieweekly ReviewNovember 27, 2010

Market declines further

The Indian stock market continued to fall, with both the Sensex and Nifty

ending the week 2.3% lower. The week began on a weak note, with reports

of North Korea shelling South Korean troops, which sent jitters throughout

global markets, including India. During mid-week, a housing loan scam

broke out, which saw the arrest of top personnel of some public-listed banks.

This weighed heavily on investors minds, particularly affecting real estate

and construction players, as well as banks that were dragged into the scam.

This negative sentiment was maintained through the remaining week, with

the market further losing ground. BSE mid-cap and small-cap indices fell

even more compared to large-cap indices, with the mid-cap index falling

by 5.8% and the small-cap index falling by 7.0%. The BSE realty index was

the biggest loser yet again, crashing by 13.6%, partly due to the housing-

related scam. It was followed by the BSE metal index, which fell by 6.4%.

The star of the week was the BSE IT sector, which gained 2.0%.

IT index resilient amidst mire

The IT index rose 2% during the week, widely outperforming the Sensex. The

top gainers were Mphasis (4.3%), HCL Tech (4.2%), TCS (2.7%), Infosys (2.5%)

and Wipro (1.2%). This sharp movement was seen due to positive global

cues such as rupee depreciating against the USD by 1.1% wow to 45.7. Also,

the European manufacturing index came in at a positive note at 54.6 for

October v/s 53.7 for September, envisaging on improving business landscape

for European clients. US GDP growth for 3QCY2010 also came in higher at

2.5% yoy v/s 1.7% yoy in 2QCY2010 due to improving consumer spending.Further, the manufacturing activity index of the Federal Reserve Bank of

Richmond rose to 9 in November from October's reading of 5. Amongst

large caps, we like TCS and HCL Tech. Amongst mid caps, we prefer Mphasis.

Inside This Weekly

Infrastructure Result Review - All eyes on 3QFY2011:Infrastructure Result Review - All eyes on 3QFY2011:Infrastructure Result Review - All eyes on 3QFY2011:Infrastructure Result Review - All eyes on 3QFY2011:Infrastructure Result Review - All eyes on 3QFY2011:Earnings for 2QFY2011

were disappointing, mainly from mid-size contractors. The slippage in the

profits of the universe was visible due to lower-than-expected EBITDA margins

and higher interest costs, with average top-line growth coming in line.

MOIL - Offer for sale:MOIL - Offer for sale:MOIL - Offer for sale:MOIL - Offer for sale:MOIL - Offer for sale: MOIL, a Miniratna PSU, accounts for nearly 50% of

India's manganese ore production. WWWWWe recommend Subscribe ande recommend Subscribe ande recommend Subscribe ande recommend Subscribe ande recommend Subscribe andInitiate Coverage on the stock with a TInitiate Coverage on the stock with a TInitiate Coverage on the stock with a TInitiate Coverage on the stock with a TInitiate Coverage on the stock with a Target Parget Parget Parget Parget Price ofrice ofrice ofrice ofrice of `````461, valuing it at 5x461, valuing it at 5x461, valuing it at 5x461, valuing it at 5x461, valuing it at 5x

FY2012E EV/EBITDFY2012E EV/EBITDFY2012E EV/EBITDFY2012E EV/EBITDFY2012E EV/EBITDAAAAA, as MOIL sells high-to-medium grade manganese ore

at market-linked prices, is expanding its production capacity at existing mines

and is attractively valued as compared to peers.

Mphasis - 4QFY2010 Result Update:Mphasis - 4QFY2010 Result Update:Mphasis - 4QFY2010 Result Update:Mphasis - 4QFY2010 Result Update:Mphasis - 4QFY2010 Result Update: Mphasis reported mixed performance

for 4QFY2010, with revenue and PAT coming in better than street and our

estimates, though margin slippage was higher than expected.

The company yet again reported strong revenue growth comparable to

tier-I IT companies. WWWWWe maintain Buy on the stock with a Te maintain Buy on the stock with a Te maintain Buy on the stock with a Te maintain Buy on the stock with a Te maintain Buy on the stock with a Target Parget Parget Parget Parget Price ofrice ofrice ofrice ofrice of

`````862, valuing it at 15x FY2012E EPS862, valuing it at 15x FY2012E EPS862, valuing it at 15x FY2012E EPS862, valuing it at 15x FY2012E EPS862, valuing it at 15x FY2012E EPS, which is at 35% discount to Infosys', which is at 35% discount to Infosys', which is at 35% discount to Infosys', which is at 35% discount to Infosys', which is at 35% discount to Infosys'

target PE of 23x.target PE of 23x.target PE of 23x.target PE of 23x.target PE of 23x.

Global Indices

Indices Nov Nov. Weekly YTD

19, 10 26, 10 (% chg)

BSE 30 19,585 19,137 (2.3) 9.6

NSE 5890 5752 (2.3) 10.6

Nasdaq 2,518 2,535 0.7 11.7

DOW 11,204 11,092 (1.0) 6.4

Nikkei 10,022 10,040 0.2 (4.8)

HangSeng 23,606 22,877 (3.1) 4.6

Straits Times 3,197 3,159 (1.2) 9.0

Shanghai Composite 2,889 2,872 (0.6) (12.4)

KLSE Composite 1,506 1,492 (0.9) 17.2

Jakarta Composite 3,725 3,643 (2.2) 43.7

KOSPI Composite 1,941 1,902 (2.0) 13.0

Indices Nov. Nov. Weekly YTD

19, 10 26, 10 (% chg)

BANKEX 13,705 13,283 (3.1) 32.4

BSE AUTO 9,941 9,866 (0.7) 32.7

BSE IT 5,890 6,009 2.0 15.9

BSE PSU 9,648 9,059 (6.1) (5.0)

Sectoral Watch

(` crore)

As on Purchases Sales Net Activity

Nov 18 502 555 (53)

Nov 19 792 495 297

Nov 22 867 521 346

Nov 23 564 1,018 (454)

Nov 24 1,113 1,521 (408)

NetNetNetNetNet 3,8393,8393,8393,8393,839 4,1104,1104,1104,1104,110 (271)(271)(271)(271)(271)

Mutual Fund activity (Equity)

(` crore)Cash Futures Net

As on (Equity) Activity

Nov 19 1,443 262 1,705

Nov 22 526 1,233 1,759

Nov 23 (1,396) (1,044) (2,440)

Nov 24 1,776 (224) 1,552

Nov 25 (532) (144) (676)

NetNetNetNetNet 1,8161,8161,8161,8161,816 8383838383 1,8991,8991,8991,8991,899

FII activity

8/8/2019 Weekly Review 27-11-10

2/17

November 27, 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 |

Infrastructure Result Review

Earnings disappoint once again:Earnings disappoint once again:Earnings disappoint once again:Earnings disappoint once again:Earnings disappoint once again: Earnings for 2QFY2011 were

disappointing, mainly from mid-size contractors. The slippage

in the profits of the universe was visible due to lower-than-

expected EBITDA margins and higher interest costs, with average

top-line growth coming in line.

Balance sheets throw a worrying picture:Balance sheets throw a worrying picture:Balance sheets throw a worrying picture:Balance sheets throw a worrying picture:Balance sheets throw a worrying picture: Analysis of the balance

sheets indicates that the sector is experiencing a sharp rise in

working capital and pick-up in capex, leading to pressure on

the cash flow. We compared the working capital ratios (in terms

of day's sales excluding cash) at the end of 1HFY2011 with that

at the end of FY2010 as well as 1HFY2010. It is evident from

the comparison that WC requirements have increased for the

sector, mainly on account of increased loans and advances as

well as debtors. We believe the key reasons for the same are 1)

stocking up in anticipation of pick-up in 2HFY2011; and 2)

lending to subsidiaries to ensure flow of in-house C&EPC

revenue. For the 12 months ended September 2010, fixed asset

investment has grown ~20% yoy, with most companies seeing

at least 20% yoy growth in capex. This is despite subdued growth

on the top-line front during the quarter. This also corroborates

management's commentary of better times ahead. The resultant

squeeze in free cash flow has led to accretion to cash,

significantly lagging overall balance sheet growth. Further, there

is strong evidence of re-leveraging.

Order inflow and order backlog - The silver lining:Order inflow and order backlog - The silver lining:Order inflow and order backlog - The silver lining:Order inflow and order backlog - The silver lining:Order inflow and order backlog - The silver lining: One of the

most positive, if not the only, outcomes from the quarter and

1HFY2011 has been traction on the order inflow side, leading

All eyes on 3QFY2011

Research Analyst - Shailesh Kanani/Nitin Arora

to soaring order backlog levels - despite unexciting activity from

the NHAI front particularly during the 2QFY2011. Most of the

contractors have seen good order inflow (we have not

considered players solely dependent on in-house projects for

order inflow). Further, with positive commentary from the

management of various companies with regard to times ahead

and strong bidding pipeline, we expect the momentum to

continue.

FFFFFavourable riskavourable riskavourable riskavourable riskavourable risk-reward ratio:-reward ratio:-reward ratio:-reward ratio:-reward ratio: The sector, after outperforming

in the initial run-up from abysmal levels, has underperformed

over the last one year. Against a 16.7% return generated by

the Sensex over the last one year, most construction stocks have

generated negative returns (excluding L&T), leading to average

underperformance of ~25-30%. However, going ahead, with

earnings momentum expected to pick up in 2HFY2011 on the

back of strong order book, in the midst of the recent meltdown

in the stocks post the quarterly numbers, the sector is trading

at attractive valuations (available at 6-8x our FY2012E earnings,

excluding L&T). We prefer IVRCL Infra, NCC, Patel Engg. and

ITNL; our preference indicates our relative comfort on execution,

state of order book position, funding and valuations within the

sector. We have valued construction companies on an SOTP

basis. For the core construction business, we have assigned

earnings multiple in the range of 10-14x (excluding L&T), based

on certain quantitative and qualitative factors. The listed

(unlisted) subsidiaries of construction companies are valued at

30% discount to their CMP (1-1.5x book value).

CompanyCompanyCompanyCompanyCompany RecommendationRecommendationRecommendationRecommendationRecommendation NearNearNearNearNear-term catalyst/ Important developments-term catalyst/ Important developments-term catalyst/ Important developments-term catalyst/ Important developments-term catalyst/ Important developments

CCCL Neutral Execution pick-up and order inflowHCC Accumulate Response to Lavasa IPO at fancy valuationsIRB Infra Accumulate New project wins from NHAI post the recent dull periodIVRCL Infra Buy Fund-raising plans and financial closure of projects for IVR Assets, which would ease WC

pressure for IVRCL Infra. Execution and earnings pick-upJAL Buy Pick up in earningsL&T Neutral Monetising of its subsidiariesMadhucon Buy Monetising of its infra subsidiary NCC Buy Favourable judgment on its power projects and earnings pick-up, in line with execution

pick-upPatel Engg. Buy Monetising and financial closure of its power subsidiaries and pick-up in the real estate

venturePunj Lloyd Buy Clarity on its qualifications and earnings pick-upSadbhav Accumulate Earnings pick-up and faster execution of captive ordersSimplex Infra Buy Execution and earnings pick-up; and financial closure of its BOT projectITNL Buy New project wins from NHAI post the recent dull period

Key triggers

Source: Company, Angel Research; Price as on November 19, 2010

8/8/2019 Weekly Review 27-11-10

3/17

November 27, 2010



MOIL - Subscribe

MOIL, a Miniratna PSU, accounts for nearly 50% of India's

manganese ore production. WWWWWe recommend Subscribe ande recommend Subscribe ande recommend Subscribe ande recommend Subscribe ande recommend Subscribe and

Initiate Coverage on the stock with a TInitiate Coverage on the stock with a TInitiate Coverage on the stock with a TInitiate Coverage on the stock with a TInitiate Coverage on the stock with a Target Parget Parget Parget Parget Price ofrice ofrice ofrice ofrice of `````461,461,461,461,461,

valuing it at 5x FY2012E EV/EBITDvaluing it at 5x FY2012E EV/EBITDvaluing it at 5x FY2012E EV/EBITDvaluing it at 5x FY2012E EV/EBITDvaluing it at 5x FY2012E EV/EBITDAAAA A, as MOIL sells

high-to-medium grade manganese ore at market-linked prices,

expanding its production capacity at existing mines and is

attractively valued as compared to peers.

Is MOIL better placed than CIL and NMDCIs MOIL better placed than CIL and NMDCIs MOIL better placed than CIL and NMDCIs MOIL better placed than CIL and NMDCIs MOIL better placed than CIL and NMDC::::: Our analysis of

the three companies on eight different factors, classified under

the parameters of industry, business and valuation, clearly

indicates that MOIL is better placed to NMDC due to its attractive

valuations. However, when compared to CIL, MOIL stands lower

as its fortunes are closely linked to steel industry (cyclical) and

its earnings are subject to high risk, if the proposed 26% mining

tax is implemented, although debatable.

LLLLLeader in the Indian manganese ore market:eader in the Indian manganese ore market:eader in the Indian manganese ore market:eader in the Indian manganese ore market:eader in the Indian manganese ore market: MOIL is expected

to maintain its market share as it augments its production

capacity at existing mines to 1.5mn tonnes by FY2016E (1.1mn

tonnes in FY2010). At Balaghat, Gumgaon and Munsar, shaft

sinking and deepening of existing shafts is underway. The

company is also expanding its value-added capacity and has

entered into JVs with SAIL and Rashtriya Ispat Nigam Ltd. (RINL)

to set up two ferro-alloy plants in Chhattisgarh and Andhra

Pradesh. The proposed installed capacity in case of the JV with

SAIL is 1,06,000 tonnes and that in case of RINL is 57,500

tonnes. The plants are expected to be commissioned by June-

July 2012.

Sharper earnings trajectory:Sharper earnings trajectory:Sharper earnings trajectory:Sharper earnings trajectory:Sharper earnings trajectory: In the near term, we expect flattish

volume growth as benefits of expanded capacity will accrue

stream post FY2012E. However, we expect manganese ore

realisations to increase by 51.1% to `11,700/tonne in FY2011E

and to `11,800/tonne in FY2012E from `7,744/tonne in

FY2010. Moreover, MOIL is relatively insulated from volatility

in its salary cost, as the wage agreement is effective for a 10-

year period. Thus, EBITDA margin are likely to expand by 946bp

to 71.6% in FY2012E. Consequently, EBITDA is expected to

report a 32.3% CAGR over FY2010-12E.

Offer for sale

Research Analyst - Paresh Jain/Pooja Jain

Monopolising Manganese


Key Financials

Net salesNet salesNet salesNet salesNet sales 1,2931,2931,2931,2931,293 969969969969969 1,4271,4271,4271,4271,427 1,4721,4721,4721,4721,472

% chg 32.3 (25.0) 47.2 3.2

Net profitNet profitNet profitNet profitNet profit 690690690690690 466466466466466 757757757757757 787787787787787% chg 49.6 (32.5) 62.6 3.9

EPS (EPS (EPS (EPS (EPS (`````))))) 39.539.539.539.539.5 27.827.827.827.827.8 45.145.145.145.145.1 46.846.846.846.846.8

EBITDA (%) 71.1 62.1 72.5 71.6

P/E (x) 9.1 13.5 8.3 8.0

P/BV (x) 4.8 3.8 2.7 2.1

RoE (%) 65.5 31.1 38.0 29.8

RoCE (%) 83.6 38.1 50.2 38.4

EV/Sales (x) 3.9 5.0 3.1 2.6

EV/EBITDA (x) 5.5 8.0 4.2 3.6

Y/E March (`cr) FY2009 FY2010 FY2011E FY2012E

IPO priced attractively:IPO priced attractively:IPO priced attractively:IPO priced attractively:IPO priced attractively: At the issue price, MOIL looks attractive

as compared to Citic Dameng Holdings (Citic), a leading

manganese ore producer of China that was listed on the Hong

Kong exchange on November 18, 2010, to raise HK $2.06bn

(US $266mn). The company operates in China and Gabon. In

2009, the company produced 1.1mn tonnes of manganese

ore. Citic has a resource base of 97.2mn tonnes. Citic is currently

trading significantly higher at 20.6x CY2010E EV/EBITDA,

whereas MOIL trades at 4.2x FY2011E EV/EBITDA.

In comparison to the recent listing in the Indian mining space,

MOIL trades at 4.2x and 3.6x FY2011E and FY2012E

EV/EBITDA, while CIL and NMDC are trading in the range of

6-13x EV/EBITDA. Further, MOIL is priced at a discount of ~30%

as compared to global diversified miners.

KKKKKey risks:ey risks:ey risks:ey risks:ey risks: 1) A decline in manganese ore prices, 2) limited

mine life for few mines, 3) downturn in the steel cycle and 4)

implementation of the proposed 26% mining tax.

8/8/2019 Weekly Review 27-11-10

4/17

November 27, 2010



Automotive Axles - Buy

Automotive Axles (AAL) posted good yoy growth in 4QSY2010,though on a qoq basis the company exhibited subdued

performance with top-line and bottom-line growth lower than

expected. Nonetheless, we expect the positive growth in the

commercial vehicle (CV) segment to help the company report

better performance going ahead.

LLLLLowerowerowerowerower-than--than--than--than--than-expected top line, down 14.9% qoq:expected top line, down 14.9% qoq:expected top line, down 14.9% qoq:expected top line, down 14.9% qoq:expected top line, down 14.9% qoq: AAL registered

75% yoy growth in net sales to `167cr (`95.4cr), which was

significantly lower than our estimates of `206cr. Top-line growth

during the quarter, however, was slower compared to growth

in the first nine months of SY2010. The top line reported a

14.9% qoq decline during 4QSY2010. The M&HCV segment,

which contributes to ~95% of AAL's revenue, grew by ~45%

yoy during the quarter.

OPM at 11.7%, down 378bp yoy:OPM at 11.7%, down 378bp yoy:OPM at 11.7%, down 378bp yoy:OPM at 11.7%, down 378bp yoy:OPM at 11.7%, down 378bp yoy: In 4QSY2010, the company's

performance on the operating front came in lower than our

expectation, largely owing to increased input costs and other

expenses. AAL witnessed a 378bp yoy decline in EBITDA margin

to 11.7% (15.5%) against our estimates of 14%. Raw-material

costs and other expenditure increased by 210bp yoy and 251bp

yoy, respectively. During the quarter, raw-material cost

accounted for about 71.6% (69.6%) of sales, primarily due to

higher steel prices. The decline in staff cost, however, arrested

the further drop in margins. Overall, AAL's operating profit grew

by 32.3% yoy in 4QSY2010.

Net profit significantly lower than expected atNet profit significantly lower than expected atNet profit significantly lower than expected atNet profit significantly lower than expected atNet profit significantly lower than expected at `````9.5cr:9.5cr:9.5cr:9.5cr:9.5cr: Net profit

during the quarter stood at `9.5cr (`7cr), which came in below

our estimates of`15.8cr mainly because of lower-than-expected

performance at the operating level. The increase in interest

and depreciation cost affected net profit growth during the

quarter. However, lower tax ratio (28.1% of PBT as against

31.9%) aided bottom-line growth to a certain extent.

4QSY2010 Results Update

Research Analyst - Vaishali Jajoo/Yaresh Kothari

Price - `466

Target Price - `547

Source: Company, Angel Research

Performance HighlightsY/E Sept.Y/E Sept.Y/E Sept.Y/E Sept.Y/E Sept. 4QSY104QSY104QSY104QSY104QSY10 4QSY094QSY094QSY094QSY094QSY09 % chg% chg% chg% chg% chg AngelAngelAngelAngelAngel % diff% diff% diff% diff% diff

(((((` cr)cr)cr)cr)cr) (yoy)(yoy)(yoy)(yoy)(yoy) est.est.est.est.est.

Net salesNet salesNet salesNet salesNet sales 167.0167.0167.0167.0167.0 95.495.495.495.495.4 75.075.075.075.075.0 206.0206.0206.0206.0206.0 (18.9)(18.9)(18.9)(18.9)(18.9)

Operating profit 19.6 14.8 32.3 28.8 (32.2)

EBITDA margin (%) 11.7 15.5 (378)bp 14.0 (229)bp

Reported Peported Peported Peported Peported PAAAAATTTTT 9.59.59.59.59.5 7.07.07.07.07.0 36.336.336.336.336.3 15.815.815.815.815.8 (((((39.9)39.9)39.9)39.9)39.9)


Key Financials

Net salesNet salesNet salesNet salesNet sales 266.3266.3266.3266.3266.3 669.7669.7669.7669.7669.7 783.1783.1783.1783.1783.1 845.9845.9845.9845.9845.9

% chg (64.3) 151.5 16.9 8.0

Net profitNet profitNet profitNet profitNet profit 9.79.79.79.79.7 44.144.144.144.144.1 50.750.750.750.750.7 55.155.155.155.155.1

% chg (82.7) 356.3 15.1 8.6

OPM (%) 12.0 13.2 13.3 13.1


P/E (x) 72.9 16.0 13.9 12.8

P/BV (x) 4.0 3.4 2.9 2.4

RoE (%) 5.6 23.1 22.6 20.5

RoCE (%) 5.5 25.5 26.1 24.8

EV/Sales (x) 2.8 1.1 1.0 0.8

EV/EBITDA (x) 23.2 8.7 7.2 6.4

Y/E Sept. (` cr) SY2009 SY2010E SY2011E SY2012E

Outlook and valuation

During SY2010-12E, we expect AAL to report a ~13% CAGR

in its top line (largely on volume growth). We have also modeled

in moderate margin contraction due to higher input costs. Thus,

in terms of earnings, we expect the company to register a robust

~12% CAGR over the same period.

At the CMP of `466, the stock is trading at 13.9x SY2011E and

12.8x SY2012E earnings of`

33.6 and`

36.5, respectively, lowerthan its historical five-year average of 15x. WWWWWe rollover toe rollover toe rollover toe rollover toe rollover to

SY2012E and recommend a Buy rating on the stock with aSY2012E and recommend a Buy rating on the stock with aSY2012E and recommend a Buy rating on the stock with aSY2012E and recommend a Buy rating on the stock with aSY2012E and recommend a Buy rating on the stock with a

TTTTTarget Parget Parget Parget Parget Price ofrice ofrice ofrice ofrice of `````547, at which level the stock would trade at547, at which level the stock would trade at547, at which level the stock would trade at547, at which level the stock would trade at547, at which level the stock would trade at

15x SY2012E EPS (in line with its historical valuation).15x SY2012E EPS (in line with its historical valuation).15x SY2012E EPS (in line with its historical valuation).15x SY2012E EPS (in line with its historical valuation).15x SY2012E EPS (in line with its historical valuation).

KKKKKey risk:ey risk:ey risk:ey risk:ey risk: Lower-than-expected growth in the CV segment

(specifically the MHCV segment) due to lower IIP poses a

downside risk to our growth estimates for the company.

8/8/2019 Weekly Review 27-11-10

5/17

November 27, 2010



Gujarat Gas - Accumulate

TTTTTopopopopop-line up 30.7% driven by higher realisations and volume:-line up 30.7% driven by higher realisations and volume:-line up 30.7% driven by higher realisations and volume:-line up 30.7% driven by higher realisations and volume:-line up 30.7% driven by higher realisations and volume:

For 3QCY2010, GGAS reported top-line growth of 30.7% yoy

to `507cr (`388cr) as against our expectation of `442cr.

Top-line was driven by an increase in average realisations and

volumes. Average realisations increased to `15.8/scm

(`13.5/scm) as against our expectation of `14/scm. Average

realisations came in higher owing to the CNG price hike effected

on December 20, 2009 to `29.96/kg (from `27.50/kg) and

further to `32.45/kg on September 4, 2010, and pass through

of higher gas cost to the industrial retail customers on account

of higher proportion of costly LNG procured during the quarter.

Realisations increased sequentially too due to similar reason.RLNG off-take spiked on lower domestic gas supply due toRLNG off-take spiked on lower domestic gas supply due toRLNG off-take spiked on lower domestic gas supply due toRLNG off-take spiked on lower domestic gas supply due toRLNG off-take spiked on lower domestic gas supply due to

shutdown at Pshutdown at Pshutdown at Pshutdown at Pshutdown at Panna and Mukta field:anna and Mukta field:anna and Mukta field:anna and Mukta field:anna and Mukta field: Gas sourcing mix during

the quarter saw a significant shift with LNG becoming the

pre-dominant source (50% of gas sourced) of gas supply for

the company after the Panna and Mukta fields were shut from

July 20, 2010 till the end of the 3QCY2010. This was the highest

ever LNG procurement by the company in a quarter. PMT

volumes during the quarter decreased by almost half on a qoq

basis and stood at ~0.9mmscmd (1.8mmscmd). However, on

a yoy basis, gas volumes grew on higher RLNG volume

off-take by 12.1% to 315mmscm (281mmscm).

OPM contracts by 47bp yoy and 449bp qoq to 17.8%:OPM contracts by 47bp yoy and 449bp qoq to 17.8%:OPM contracts by 47bp yoy and 449bp qoq to 17.8%:OPM contracts by 47bp yoy and 449bp qoq to 17.8%:OPM contracts by 47bp yoy and 449bp qoq to 17.8%:

Sequentially, the company's OPM dipped by 449bp to 17.8%

(22.3%) mainly on account of the decrease in the gross gas

spread, which fell to `3.7/scm from a spread of `4/scm

registered in 2QCY2010. This was on account of the full impact

of increase in APM gas price (w.e.f May 20, 2010) and increase

in costs due to higher proportion of LNG procured during the

quarter. Adding to woes was the 1.9% rupee depreciation during

the quarter. On a yoy basis, the company's OPM declined by

47bp despite higher gross gas spread at`

3.7/scm (`

3.5/scm)on account of higher top-line registered during the quarter due

3QCY2010 Result Update

Research Analyst - Amit Vora

Price - `374

Target Price - `418


Performance HighlightsY/E MarchY/E MarchY/E MarchY/E MarchY/E March 3QCY103QCY103QCY103QCY103QCY10 2QCY102QCY102QCY102QCY102QCY10 % chg% chg% chg% chg% chg 3QCY093QCY093QCY093QCY093QCY09 % chg% chg% chg% chg% chg

(((((` cr)cr)cr)cr)cr) qoqqoqqoqqoqqoq yoyyoyyoyyoyyoy

Net Operating Inc.Net Operating Inc.Net Operating Inc.Net Operating Inc.Net Operating Inc. 507507507507507 419419419419419 21.121.121.121.121.1 388388388388388 30.730.730.730.730.7

EBITDA 90 93 (3.3) 71 27.3

EBITDA Margin (%) 17.8 22.3 (4.5) 18.3 (0.5)

Adj. PAdj. PAdj. PAdj. PAdj. PAAAAATTTTT 5656565656 5858585858 (2.0)(2.0)(2.0)(2.0)(2.0) 4444444444 27.027.027.027.027.0

to pass through of relatively costly LNG to the industrial retail

customers. Thus, EBITDA/scm in line with gross gas spread stood

higher yoy at `2.9/scm (`2.5/scm).

Depreciation, interest costs in line:Depreciation, interest costs in line:Depreciation, interest costs in line:Depreciation, interest costs in line:Depreciation, interest costs in line: Depreciation moved up

13.8% yoy to `13.8cr (`12.1cr) due to investments in pipeline

network, CNG and other infrastructure during the year. Since

company uses internal cash accruals to meet its working capital

requirements and for expansions, interest costs were negligible.

Higher topHigher topHigher topHigher topHigher top-line boosts P-line boosts P-line boosts P-line boosts P-line boosts PAAAAAT by 27%, in line with our expectation:T by 27%, in line with our expectation:T by 27%, in line with our expectation:T by 27%, in line with our expectation:T by 27%, in line with our expectation:

Other income declined 18.9% yoy to `5cr (`6.1cr), while the

effective tax rate stood lower at 30.7% (31.5%). PAT increased

by 27% yoy to `56cr (`44cr) in line with our expectation of

`57cr, and primarily due to the increase in volume.

Outlook and Valuation

GGAS volumes were supported by higher gas flow from RLNG

(around 50% of total gas sourced) due to the force majeure

situation at Panna and Mukta fields. Going ahead, we expect

RLNG prices to remain subdued owing to which RLNG volume

would be robust. Increase in domestic (gas flow from KG-D6)and RLNG volumes would be the future growth drivers for GGAS

and soften supply-side constraints. WWWWWe have rolled over toe have rolled over toe have rolled over toe have rolled over toe have rolled over to

CY2012 and recommend an Accumulate on the stock, with aCY2012 and recommend an Accumulate on the stock, with aCY2012 and recommend an Accumulate on the stock, with aCY2012 and recommend an Accumulate on the stock, with aCY2012 and recommend an Accumulate on the stock, with a

TTTTTarget Parget Parget Parget Parget Price ofrice ofrice ofrice ofrice of `````418.418.418.418.418.


Key Financials (Consolidated)

Net SalesNet SalesNet SalesNet SalesNet Sales 1,4201,4201,4201,4201,420 1,8241,8241,8241,8241,824 2,1062,1062,1062,1062,106 2,4382,4382,4382,4382,438

% chg 9.1 28.5 15.4 15.8

Net PNet PNet PNet PNet Profitsrofitsrofitsrofitsrofits 174.2174.2174.2174.2174.2 230.2230.2230.2230.2230.2 255.3255.3255.3255.3255.3 297.8297.8297.8297.8297.8% chg 8.4 32.2 10.9 16.6

OPM (%) 19.7 20.8 20.1 19.9


P/E (x) 27.5 20.8 18.8 16.1

P/BV (x) 6.3 5.3 4.5 3.8

RoE (%) 23.6 27.6 25.9 25.4

RoCE (%) 24.4 30.2 28.9 28.7

EV/Sales (x) 3.1 2.4 2.0 1.7

EV/EBITDA (x) 15.6 11.4 10.0 8.3

Y/E Dec. (`cr) CY2009 CY2010E CY2011E CY2012E

8/8/2019 Weekly Review 27-11-10

6/17

November 27, 2010



Mphasis - Buy

Mphasis reported mixed performance for 4QFY2010 withrevenue and PAT coming in better than street as well as our

estimate, though margin slippage was higher than expected.

The company yet again reported strong revenue growth

comparable to tier-I IT companies. Hence, we continue to prefer

Mphasis from our mid-cap IT coverage universe.

Revenue outperformance continues:Revenue outperformance continues:Revenue outperformance continues:Revenue outperformance continues:Revenue outperformance continues: Mphasis reported revenues

of US $296mn for 4QFY2010 v/s US $276mn in 3QFY2010,

registering 7.5% qoq growth, backed by overall volume growth

of 4.9% qoq. Volumes increased led by the ITO segment, which

reported 7.7% qoq growth followed by the application servicessegment, which clocked 4.7% qoq growth. The BPO segment

recorded mere 0.8% qoq growth in volume.In rupee terms,

revenue grew 5.1% qoq to `1,345cr as against `1,279cr in

3QFY2010.

EBITDEBITDEBITDEBITDEBITDA margin slips: A margin slips: A margin slips: A margin slips:A margin slips: Overall, Mphasis recorded 89bp qoq

(221bp yoy) contraction in EBITDA margin to 23.8% (v/s our

estimate of 24.2%) in 4QFY2010 as against 24.7% in

3QFY2010. EBITDA margin contracted despite the expansion

in gross margins was due to the absence of one-off i.e. the

refund from Karnataka Bank of `13cr savings in G&A as in3QFY10 and higher S&M expenses to monetise the direct HP

channel.

Mphasis reported nearly flat pricing across all the business

segments. The overhang of pricing renegotiations was shunned

by the company on account of recording better price points

across its anchor business segment i.e. the application services

segment improved its onsite billing rate to US $72/hr from US

$71/hr in 3QFY2010. Offshore pricing of the segment was flat

at US $20/hr. The ITO services segment's offshore pricing slipped

to US $20/hr from US $21/hr in 3QFY2010 due to absence of

one-off revenues as in 3QFY2010.

4QFY2010 Result Update

Research Analyst - Srishti Anand/Ankita Somani

Price - `613

Target Price - `862


Performance Highlights


(((((` cr)cr)cr)cr)cr) 4QFY104QFY104QFY104QFY104QFY10 3QFY103QFY103QFY103QFY103QFY10 % chg% chg% chg% chg% chg 4QFY094QFY094QFY094QFY094QFY09 %%%%% chgchgchgchgchg

(qoq)(qoq)(qoq)(qoq)(qoq) (yoy(yoy(yoy(yoy(yoy)

Net SalesNet SalesNet SalesNet SalesNet Sales 1,3451,3451,3451,3451,345 1,2791,2791,2791,2791,279 5.15.15.15.15.1 1,1321,1321,1321,1321,132 18.818.818.818.818.8

EBITDA 320 316 1.4 295 8.8

EBITDA margin (%) 23.8 24.7 (89)bp 26.0 (221)bp

PPPPPAAAAATTTTT 284284284284284 271271271271271 4.64.64.64.64.6 245245245245245 15.815.815.815.815.8

Key Financials (Consolidated)

Net salesNet salesNet salesNet salesNet sales 4,2714,2714,2714,2714,271 5,0365,0365,0365,0365,036 6,0246,0246,0246,0246,024 7,0447,0447,0447,0447,044

% chg 124.0 17.9 19.6 16.9

Net profitNet profitNet profitNet profitNet profit 916916916916916 1,0911,0911,0911,0911,091 1,1621,1621,1621,1621,162 1,2081,2081,2081,2081,208

% chg 220.0 19.0 6.5 4.0

EBITDA margin (%) 26.6 25.1 23.8 22.9


P/E (x) 14.1 11.8 11.1 10.6

P/BV (x) 5.5 3.9 2.9 2.3

RoE (%) 48.5 38.6 30.3 24.5

RoCE (%) 49.2 38.7 32.4 28.3

EV/Sales (x) 2.8 2.2 1.7 1.4

EV/EBITDA (x) 10.5 8.9 7.3 5.9

Y/E Oct (`cr) FY2009 FY2010 FY2011E FY2012E

Outlook and valuation

The ITO business has emerged the growth driver for the

company recording 6.5% qoq growth. The application business

has also been growing on the back of strong traction in the

anchor vertical, viz. banking and financial services. We expect

this strong volume-led growth momentum to persist and estimate

the company's dollar revenue to post 19.3% CAGR over

FY2010-12. On the operating front, we expect the company to

face margin headwinds because of a stronger rupee, competitive

wage inflation and continued S&M spending to tap more clients

via the direct channel overshadowing the gains accruing from

higher utilisation and sustainable G&A. Hence, we expect

EBITDA to clock mere 13% CAGR over the period vis--vis strong

revenue growth of 18.3%.

At the CMP, the stock is trading inexpensive at 10.6x FY2012E

EPS despite registering revenue growth and profitability

comparable to tier-I companies like HCL Tech and Wipro. WWWWWeeeee

maintain a Buy on the stock, with a Tmaintain a Buy on the stock, with a Tmaintain a Buy on the stock, with a Tmaintain a Buy on the stock, with a Tmaintain a Buy on the stock, with a T

arget Parget Parget Parget Parget P

rice ofrice ofrice ofrice ofrice of `````

862 valuing862 valuing862 valuing862 valuing862 valuing

it at 15x FY2012E EPSit at 15x FY2012E EPSit at 15x FY2012E EPSit at 15x FY2012E EPSit at 15x FY2012E EPS, which is at 35% discount to Infosys', which is at 35% discount to Infosys', which is at 35% discount to Infosys', which is at 35% discount to Infosys', which is at 35% discount to Infosys'

TTTTTarget PE of 23x.arget PE of 23x.arget PE of 23x.arget PE of 23x.arget PE of 23x.

8/8/2019 Weekly Review 27-11-10

7/17

November 27, 2010


TTTTTechnical Picks |echnical Picks |echnical Picks |echnical Picks |echnical Picks |

Markets at crucial support levels - Bounce in the offing

Sensex (19137) / Nifty (5752)

Source: Falcon

Exhibit 1: Sensex Weekly chartIn our previous Weekly report, we had mentioned that

immediate support for the indices were at 19465 / 5843 levels,

which coincided with the upward sloping trendline, and any

breach of this trendline would drag the indices lower to test

19076 / 5726 levels. The week witnessed positive opening,

but sharp selling pressure in the next four consecutive trading

sessions dragged down the indices to test the low of

18955 / 5690 but managed to close above the mentioned

levels. The Sensex and Nifty ended with net loss of 2.3%,

vis--vis the previous week.

Pattern Formation

On theWWWWWeekly charteekly charteekly charteekly charteekly chart, the upper trendline of the Channel,

which was broken on Sept 2010, and the Upward Gap Area

shown in the Exhibit are likely to act support zone for the markets.

- 6339) which are likely to act as a support for the markets

(Refer Exhibit No.1).

Future Outlook

Markets after a sharp fall have retraced 61.8% of the entire

up-move, which started from 17819 to 21109 / 5349 to 6339,

and this is a Fibonacci support level. Further, we are observing

that the upper trendline of the Channel, which was earlier acting

as a resistance is expected to act as a support for the markets

going ahead. Even the upward gap (18823 to18845) on theSensex coincides with the upper trendline, which could act as a

support for the markets. In view of the above observation, we

are of the opinion that the markets are likely to witness a bounce.

On the upside, 19680 - 20000 / 5900 - 6000 levels in the

coming week cannot be ruled out as the daily and weekly

oscillators are in an oversold zone.

8/8/2019 Weekly Review 27-11-10

8/17

November 27, 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

DLFGAIL

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

RELINFRARPOWER

SIEMENS

STATE BANK

STEEL AUTHOR

STER

SUN PHARMA.

SUZLON

TATA POWER

TATAMOTORS

TATASTEEL

TCS

UNITECH LTD

WIPRO

SCRIPS20,394 19,765 19,360 18,731 18,326

6,151 5,951 5,821 5,621 5,491

12,867 12,268 11,815 11,216 10,764

1,063 1,033 1,008 978 953

907 835 793 721 678

155 147 140 132 126

1,517 1,424 1,361 1,267 1,204

752 710 680 637 607

351 342 331 323 312

2,380 2,239 2,147 2,005 1,913

341 317 300 277 260

363 352 339 327 314

355 321 289 255 223506 497 489 479 471

416 404 388 376 359

2,437 2,367 2,322 2,252 2,207

2,004 1,970 1,936 1,903 1,869

228 214 204 190 180

308 301 295 288 282

739 712 693 666 647

1,238 1,181 1,136 1,079 1,034

80 75 71 66 61

207 193 181 168 155

3,195 3,119 3,034 2,958 2,874

180 174 170 164 160

707 659 617 569 527

138 122 110 94 83

510 486 460 436 410

2,136 2,037 1,966 1,866 1,795

828 793 764 728 699

1,521 1,444 1,390 1,313 1,259

191 184 180 173 169

1,359 1,300 1,246 1,187 1,133

1,400 1,275 1,201 1,077 1,002

106 101 97 93 89

601 574 552 524 502

160 145 137 122 114

743 689 652 598 561

1,039 1,001 979 941 920

999 927 886 813 772187 172 162 147 137

828 789 766 727 704

3,171 3,017 2,896 2,742 2,621

201 188 177 163 152

186 174 166 153 146

495 471 450 426 405

57 51 47 41 37

1,400 1,345 1,300 1,245 1,200

1,311 1,239 1,188 1,116 1,066

648 623 603 578 557

1,088 1,068 1,033 1,013 978

83 71 59 47 35

433 420 409 397 386

R2R2R2R2R2 R1R1R1R1R1 PIVPIVPIVPIVPIVOOOOOTTTTT S1S1S1S1S1 S2S2S2S2S2

8/8/2019 Weekly Review 27-11-10

9/17

November 27, 2010


Derivatives Review |Derivatives Review |Derivatives Review |Derivatives Review |Derivatives Review |

Selective large-caps can be bought around 5600 levels

Nifty spot has closed at 5752 this week, against a close of 5890 last week. The Put-Call Ratio is at 1.26 levels and the annualized Cost

of Carry (CoC) is positive 4.89%. The Open Interest of Nifty Futures has decreased by 11.77% due to expiry.

Derivative Strategy

The Nifty December futures closed at a premium of 26.20 points

from a premium of 30.55 points last week and the January

futures closed a premium of 49.80 points. Few liquid stocks

where Cost-of-Carry is positive are GTLINFRA, STER,

PANTALOONR, INDIANB and TATACOMM. Stocks where Cost-

of-Carry is negative are SCI, BRFL, IOB, ACC and PNB.

Total open interest of the market is `1,20,768cr against

`1,74,1465cr last week and the stock futures open interest has

decreased from `46,897cr to`35,543cr. The Stock futures open

interest has decreased significantly over a week, due to

considerable unwinding in most of the stock futures during the

week and expiry of the November series. Week-on-week shorting

was observed in Nifty futures and FIIs are also forming shorts

in the index futures. Few large caps where open interest has

reduced significantly are HEROHONDA, M&M, GAIL,

AXISBANK and BHARTIARTL.

Open Interest Analysis Cost-of-Carry Analysis

Initial data of December series is showing highest open interest

in the 6000 call option and the 5600 put option. Week-on-

week these two strikes added highest open interest. FIIs data is

suggesting that they are buying Index options to hedge their

short positions in the Index futures and cash base selling. We

expect further correction in the market and it to take support

around 5600 levels. The levels can be used to buy selective

large-cap stocks. Among stock options RELIANCE has highest

build up in the 1000 call option.

Put-Call Ratio Analysis Futures Annual Volatility Analysis

Historical volatility of Nifty has decreased from 24.98% to

24.76%. IV of at-the-money call and put options were almost

same and have increased from 18.50% to 20.00%. Some liquid

counters where HV has increased significantly are LICHSGFIN,

ADANIENT, HCC, INDIAINFO and BGRENERGY. Stocks where

HV has decreased significantly are GESHIP, HINDUNILVR,

UNIPHOS, HEROHONDA and LUPIN.

Scrip : ITScrip : ITScrip : ITScrip : ITScrip : ITCCCCC CMP :CMP :CMP :CMP :CMP : ` 167.65/-167.65/-167.65/-167.65/-167.65/- LLLLLot Size : 2000ot Size : 2000ot Size : 2000ot Size : 2000ot Size : 2000 Expiry Date (F&O) :Expiry Date (F&O) :Expiry Date (F&O) :Expiry Date (F&O) :Expiry Date (F&O) :

30th Dec, 2010

Expected PayoffView: Mildly Bullish

`165.00

`170.00

`175.00

`180.00

`185.00

`190.00

LBEPLBEPLBEPLBEPLBEP::::: `171.00/-

HBEPHBEPHBEPHBEPHBEP::::: `189.00/-

Max. Risk:Max. Risk:Max. Risk:Max. Risk:Max. Risk: Unlimited Max. PMax. PMax. PMax. PMax. Profit:rofit:rofit:rofit:rofit: Rs.18,000.00/-

If ITC continues to trade above HBEP. If ITC closes at Rs.180 on expiry.

NONONONONOTETETETETE::::: Profit can be booked before expiry if ITC moves in the favorable direction and time value decays.

Strategy: Ratio Bull Call Spread

Buy/SellBuy/SellBuy/SellBuy/SellBuy/Sell QtyQtyQtyQtyQty ScripScripScripScripScrip StrikeStrikeStrikeStrikeStrike SeriesSeriesSeriesSeriesSeries OptionOptionOptionOptionOption RateRateRateRateRate

PPPPPricericericericerice TTTTTypeypeypeypeype (((((`````.).).).).)

Buy 2000 ITC 170 Dec. Call 5.00

Sell 4000 ITC 180 Dec. Call 2.00

Closing PClosing PClosing PClosing PClosing Pricericericericerice ExpectedExpectedExpectedExpectedExpectedPPPPProfit/Lrofit/Lrofit/Lrofit/Lrofit/Lossossossossoss

(`1.00)

(`1.00)

`4.00

`9.00

`4.00

(`1.00)

8/8/2019 Weekly Review 27-11-10

10/17

November 27, 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 Principal Mutual Fund NFO

Note. Mutual Fund investments are subjected to market risk. Please read the Statement of Additional Information and Scheme Information document carefully before investing.

Price to Earnings (P/E) Funds

Invest the P/E way and do it consistently

For the larger base i.e. retail investors, a strategy which provides

timely and regular asset rebalancing is worth exploring.

P/E based investing allows investors to tactically manage their

asset allocation across equities and debt combined with timely

entry/exit. The benefit: Discipline and Consistency.

Simple Investing Mantra - Buy Cheap and sell Dear

This is the age-old FIRST rule for making money from any

investment.

It is very well known that equities as an asset class have delivered

relatively better returns over the long term with experts

emphasizing an investment horizon of atleast 5 - 7 years.

The problem does not lie in equity as an investment option but

in our investing philosophy. Fear and Greed prevents investor

from implementing this simple rule.

Disciplined Investing is the Solution

A disciplined approach to investing without influence of human

emotions and biases is the solution to the above problem.

Since these asset allocation decisions are required to be

diligently and consistently done over extended period of time,

it is best implemented through a fund which is structured to

consistently implement it strictly adhering to an asset allocation

model which is based on time tested valuation principles.

What is P/E?

Price to Earning Ratio (P/E Ratio) is a time tested measure to

assess market valuations. Simply speaking it is the price the

market is willing to pay for a company's earnings.

It is calculated as Stock Price (divided by) Earning per Share

(expressed as number of *times of earnings).

A high P/E may indicate an expensive stock relative to its peers.

However, it can also indicate that the market has high hopes

for this stock's future and has bid up the price.

There is no 'right P/E'. It is a subjective question.

Different sets of investor may be willing to pay differently for a

company or market's earnings.

Yet there is historical evidence to prove the market's comfort at

different P/E levels. The same historical trend can be used to

take asset allocation decisions based on market valuations.

Why Invest in P/E Based Funds?

The P/E Way

The P/E Ratio has traditionally been used as a tool to assess

whether the equity markets are cheap or expensively priced.

Investing the P/E way allows you to tactically manage your

asset allocation by moving your investment 'strategically'

across equities and debt based on certain pre-set conditions

and time periods set by the fund you have invested.

These funds reduce the allocation to equities at higher PE

levels, thus minimizing the downside risk. At lower PE levels,

the allocation to equity is increased, thus capitalizing on

their upside potential.

Such deliberated asset moves help the fund containdownsides better than pure-play equity funds and provide

an opportunity to deliver better returns than debt funds

during protracted rallies.

Bull Market or Bear Market - This Strategy Works

Over the long term period, the P/E way has consistently

performed better across different time periods and is more

suitable for investors looking for consistent returns with

limited downside risks.

Returns through P/E based strategy vs. Market Returns

TimeTimeTimeTimeTime Crisil BalancedCrisil BalancedCrisil BalancedCrisil BalancedCrisil Balanced

PPPPPerioderioderioderioderiod BSE 100 IndexBSE 100 IndexBSE 100 IndexBSE 100 IndexBSE 100 Index P/E Based StrategyP/E Based StrategyP/E Based StrategyP/E Based StrategyP/E Based Strategy FFFFFund Indexund Indexund Indexund Indexund Index

ReturnsReturnsReturnsReturnsReturns VVVVValue ofalue ofalue ofalue ofalue of ReturnsReturnsReturnsReturnsReturns VVVVValue ofalue ofalue ofalue ofalue of ReturnsReturnsReturnsReturnsReturns VVVVValue ofalue ofalue ofalue ofalue of

Rs. 1 lacRs. 1 lacRs. 1 lacRs. 1 lacRs. 1 lac Rs. 1 lacRs. 1 lacRs. 1 lacRs. 1 lacRs. 1 lac Rs. 1 lacRs. 1 lacRs. 1 lacRs. 1 lacRs. 1 lac

1 Year 27.7 1,27,682 16.1 1,16,069 19.4 1,19,368

2 Years 46.7 2,14,776 44.4 2,07,973 31.7 1,73,297

3 Years 0.8 1,02,394 12.5 1,42,405 3.9 1,12,130

5 Years 20.7 2,55,793 25.1 3,05,681 15.7 2,07,386

7 Years 23.1 4,28,093 29.2 5,99,473 15.8 2,78,976

10 Years 18.7 5,55,035 25.3 9,53,279 N.A. N.A.

Since Jan

1, 1999 19.0 7,81,069 25.7 14,98,614 N.A. N.A.

8/8/2019 Weekly Review 27-11-10

11/17

November 27, 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 and Principal

Mutual Fund NFO Note. Mutual Fund investments are subjected to market risk. Please read the Statement of Additional Information and Scheme Information document carefully before investing.

Principal SMART Equity Fund - NFO Analysis

Scheme Objective The primary objective of the scheme is to seek to generate long term capital appreciation with relatively lower volatility through

systematic allocation of funds into equity and in debt / money market instruments for defensive purpose. The scheme will

decide on allocation of funds into equity assets based on equity market Price Earning Ratio (PE Ratio) levels. When the markets

become expensive in terms of 'Price to Earning Ratio'; the scheme will reduce its allocation to equities and move assets into

debt and/or money market instruments and vice versa.

Type of Fund An Open Ended Equity Scheme

Bench Mark Index CRISIL Balanced Fund Index

Min. Investment Rs.5000 & in multiples of Re. 1 thereafter

Min. Additional Amt. Rs.500 & in multiples of Re. 1 thereafter

SIP Minimum six installments of Rs. 500 each

Entry Loads NIL

Exit Loads Upto 1 year - 2%

Upto 2 Years - 1%

After 2 Years - NIL

Plans/Options Growth Option & Dividend Option

Fund Manager Mr. Rajat Jain

Asset Allocation Instruments % of Net Assets Risk Profile

Equity & Equity Related Instruments of Large Cap Companies 0% - 100% Medium to High

Debt or Money Market Securities and/or units of Money 0%- 100% Low to Medium

Market/Liquid Schemes of Principal Mutual Fund

Fund Features NFO Date: - 26th Nov to 10th Dec 2010

Investment Strategy

The scheme's equity allocation may follow the following pattern

based on S&P CNX Nifty P/E Ratio level;

What is Principal SMART Equity Fund?

It is an open-ended P/E based equity scheme which dynamically

changes its asset allocation between equities and debt/money

market instruments based on the weighted average

price-earnings ratio (P/E Ratio) of the CNX Nifty Index (NSE

Nifty).

The scheme will decide on allocation of funds into equity assets

based on equity market Price Earning Ratio (P/E Ratio) levels.

When the markets become expensive in terms of a set

'P/E Ratio'; the Scheme will reduce its allocation to equities and

move assets into debt and/or money market instruments and

vice versa. Such a strategy is expected to optimize the risk return

proposition for the long term investor.

SchemesSchemesSchemesSchemesSchemes 1 Y1 Y1 Y1 Y1 Yearearearearear 2 Y2 Y2 Y2 Y2 Yearsearsearsearsears 3 Y3 Y3 Y3 Y3 Yearsearsearsearsears 5 Y5 Y5 Y5 Y5 Yearsearsearsearsears SinceSinceSinceSinceSince

InceptionInceptionInceptionInceptionInception

Principal Index Fund 14.79 45.45 0.31 15.52 13.01

S&P NiftyS&P NiftyS&P NiftyS&P NiftyS&P Nifty 15.3215.3215.3215.3215.32 47.1747.1747.1747.1747.17 1.501.501.501.501.50 17.3517.3517.3517.3517.35 16.0916.0916.0916.0916.09

Principal Large Cap 21.24 66.28 4.30 23.17 24.34

Principal Personal Taxsaver 17.81 53.01 (1.20) 18.72 26.26

BSE 100BSE 100BSE 100BSE 100BSE 100 14.6014.6014.6014.6014.60 50.9750.9750.9750.9750.97 0.900.900.900.900.90 17.5217.5217.5217.5217.52 16.5016.5016.5016.5016.50

Principal MIP 4.72 13.33 7.15 8.52 9.27

Principal MIP Plus 5.08 15.43 7.34 9.93 9.45

Crisil MIP Blended IndexCrisil MIP Blended IndexCrisil MIP Blended IndexCrisil MIP Blended IndexCrisil MIP Blended Index 6.546.546.546.546.54 13.1313.1313.1313.1313.13 6.236.236.236.236.23 7.947.947.947.947.94 8.558.558.558.558.55

Fund Manager Performance

WWWWWeighted Average PE Ratio ofeighted Average PE Ratio ofeighted Average PE Ratio ofeighted Average PE Ratio ofeighted Average PE Ratio of EquityEquityEquityEquityEquity DebtDebtDebtDebtDebt

S&P CNX NiftyS&P CNX NiftyS&P CNX NiftyS&P CNX NiftyS&P CNX Nifty Component (%)Component (%)Component (%)Component (%)Component (%) Component (%)Component (%)Component (%)Component (%)Component (%)

Upto 16 100 0

Above 16 - Upto 18 80 - 100 0 - 20

Above 18 - Upto 20 60 - 80 20 - 40

Above 20 - Upto 24 30 - 50 50 - 70

Above 24 - Upto 26 10 - 20 80 - 90

Above 26 - Upto 28 0 - 10 90 - 100

Above 28 0 100

For this purpose the month-end PE Ratio of S&P CNX Nifty Index

(NSE Nifty) will be considered. Such a PE Ratio will be the

month-end weighted average PE Ratio of the constituent stocksmaking up the S&P CNX Nifty Index. The price considered will be

the closing market price on the NSE as at the month end. The

undiluted earnings per share will reflect the trailing earnings of the

most recent four quarters of each company. This P/E ratio will be

rounded off to the nearest decimal. Thus every month-end we would

observe the above mentioned PE Ratio and the resultant PE band.

The investment strategy outlines different PE bands and the asset

allocation applicable to each band. If there is a change in the PE

band as observed on the latest month-end as compared to last

month-end (due to Nifty PE moving out of one band to another)

then it will require rebalancing of portfolio to bring the equity

component in line with the new band. This rebalancing would bedone latest before the end of the subsequent month.

Note: Returns (%) are as on 24th November, 2010 on CAGR Basis, Returnsare for growth option

8/8/2019 Weekly Review 27-11-10

12/17

November 27, 2010


Currencies Weekly Performance Snapshot

Research Analyst (Commodity) - Reena Walia Nair/Naser Parkar

The Euro declined more than 3% against the dollar in the last

week, its worst weekly performance in the last two months.

Increasing concerns of a sovereign debt crisis in the Euro zone

led the currency to depreciate. On the other hand, the US dollar

Index (DX) gained on the back of its safe-haven appeal.

Concerns in the Euro zone coupled with geopolitical concerns

in Korea made investors flock towards the US dollar. The DX,

tracking the performance of the greenback against a basket of

six currencies gained around 2.4% w-o-w, touching a two-month

high of 80.52 at the end of the week.

Currency Corner |Currency Corner |Currency Corner |Currency Corner |Currency Corner |

Despite Ireland announcing a strong austerity plan in the mid-

week to pave way for a bailout amounting to around 85 bn

Euros, investors still remain skeptical over further prospects inthe region. The austerity plan include job cuts in the public

sector, increase in value-added tax (VAT) which will be

implemented in a phased manner, and public spending cuts.

But, the corporate tax, which was criticized by the EU members

to be lower, was left unchanged at 12.5%. Credit rating agency,

S&P lowered Ireland's long term debt rating to A from the

previous of AA-, with a negative outlook considering the ongoing

debt issues in the country. Further, there are concerns that Spain

and Portugal would be the next in line requiring a financial

bailout.

Spain's financial authorities said on Friday that they will publish

results of extra health checks on its banks in the coming months

and also provide monthly updates of its public debt to increase

transparency and reduce investor concerns. The country's

economy Minister, Elena Salgado, said that the amount of debt

to be raised would be lowered in the coming months, but the

number of debt auctions would remain the same. The minister

also stated that the public finances of Spain were more favorable

than anticipated by the investors.

Fundamental and Technical Outlook

Currently, the major concern in the global markets is of thesovereign debt crisis in the Euro-zone. Hence, we expect these

concerns to continue to dominate the market sentiments as one

after the other European countries are posing threat and raising

fears of the crisis spreading to other economies. We expect the

US dollar to remain strong on the back of these issues coupled

with concerns in the Korean countries. The stronger dollar will

exert downside pressure on the other major currencies, including

the Euro and the British pound. On the domestic front, India's

GDP figures are expected to be announced on Tuesday and

there are expectations that the Indian economy would report

around 8.8% GDP growth in the July-September quarter. But,despite strong GDP figures, we expect the Indian Rupee to

depreciate further taking cues from risk aversion and global

economic concerns.

Indian Rupee declines more than 1%

The Indian Rupee touched a 10-week low of 45.89 against the

US dollar on Friday, depreciating for three consecutive weeks.

The domestic currency came under pressure on the back of a

stronger US dollar in the global markets, sharp decline in the

domestic equities and ongoing concerns in the Euro zone. India's

benchmark indices declined more than 2% w-o-w tracking the

global equities.

Exhibit 2: Spot Rupee Weekly Price Chart

Source: Telequote

Exhibit 3: Technical Levels

CurrencyCurrencyCurrencyCurrencyCurrency SupportSupportSupportSupportSupport ResistanceResistanceResistanceResistanceResistance

DX 78.73 82.17

Euro 1.2820 1.3618

INR 45.38 46.49

JPY 82.22 85.10

GBP 1.5240 1.5924Source: Telequote

Exhibit 1: Currencies PerformanceCurrencyCurrencyCurrencyCurrencyCurrency 27th Nov27th Nov27th Nov27th Nov27th Nov 20th Nov20th Nov20th Nov20th Nov20th Nov ChgChgChgChgChg % Chg% Chg% Chg% Chg% Chg

DX 80.38 78.49 1.89 2.4

Euro 1.324 1.3666 (0.0426) (3.1)

INR 45.85 45.29 0.56 1.2

JPY 84.06 83.51 0.55 0.7

GBP 1.559 1.5985 (0.0395) (2.5)

Source: Telequote

8/8/2019 Weekly Review 27-11-10

13/17

November 27, 2010


Commodities Center |Commodities Center |Commodities Center |Commodities Center |Commodities Center |

Research Analyst (Commodity) - Badruddin/ Naser Parkar

Exhibit 1: Commodities Weekly Performance27th Nov27th Nov27th Nov27th Nov27th Nov..... 20th Nov20th Nov20th Nov20th Nov20th Nov..... % 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

Nickel 1035.30 996.9 3.9

Crude Oil 3857 3753 2.7

Gold 20311 20102 1.0

TTTTTop Lop Lop Lop Lop Losersosersosersosersosers

Zinc 96.75 98.90 (2.2)

Agri Commodities (NCDEX)Agri Commodities (NCDEX)Agri Commodities (NCDEX)Agri Commodities (NCDEX)Agri Commodities (NCDEX)

TTTTTop Gainersop Gainersop Gainersop Gainersop Gainers

Turmeric 15750 13260 18.80

Cardamom 1104 972 13.60Guar Gum 6090 5693 7.00

Chana 2526 2459 2.70

TTTTTop Lop Lop Lop Lop Losersosersosersosersosers

Chilli 5271 5511 (4.40)

Kapas 710 736 (3.50)Jeera 14290 14727 (3.00)

Pepper 21790 22388 (2.70)

International Perspective

Commodity prices traded on a volatile note but pared major gains

towards the end of the week after China raised margins on

commodity futures trading on Thursday, yet another effort to coolinflation. However, on the Indian exchanges, commodity prices

were supported on the back of a weaker Indian currency. The Rupee

declined more than 1% w-o-w and this factor helped prices on the

Indian exchanges. Commodity prices in the international markets

also faced pressure from the sharp rise in the US dollar. The DX- a

gauge against a basket of six currencies gained more than 2% w-

o-w and this factor exerted pressure on the dollar-denominated

commodities.

The Shanghai Futures Exchange also raised daily price limits on

commodities trading in order to curb speculation and cool inflation.

Margins have been raised on Copper, Aluminum, Steel wire, Gold

and Fuel Oil to 10%. The Asian giant is constantly enforcing new

steps to control its rising inflation, which recently rose to 4.4% in

October, the fastest in the last 2 years. In the earlier week, the

country had raised its reserve requirement ratio for banks by 50

basis points, a fifth increase in the current year. Another major

factor in the last week was North Korea's unexpected attack on

South Korea. The former fired scores of artillery shells at a South

Korean island called Yeonpyeong on Tuesday. Global markets

reacted to this and huge selling pressure was witnessed in the equity

as well as the commodity markets on that day.

However, nickel prices surged in the last week after data from the

Commodities Update

Exhibit 2: Major Economic Data Releases this week

DateDateDateDateDate CountryCountryCountryCountryCountry IndicatorIndicatorIndicatorIndicatorIndicator FFFFForecastorecastorecastorecastorecast PPPPPreviousreviousreviousreviousreviousDec 1 US Fed Chairman Bernanke's Speech - -

Dec 1 US ISM Manufacturing PMI 69K 43K

Dec 1 China Manufacturing PMI 54.9 54.7

Dec 2 US Pending Home Sales m/m -0.9% -1.8%

Dec 3 US Unemployment Rate 9.6% 9.6%

Outlook

In the first half of this week, we expect international commodities

to take cues from the Euro zone debt concerns. Concerns in the

Euro zone continue to persist and there are expectations that after

Ireland, Spain and Portugal would be in line seeking a financial

aid. Hence, we expect the DX to remain strong in this week and

this factor will curb demand for the dollar-denominated

commodities. However, in the later part of the week, prices will

also be influenced by economic data to be released from the US

and China.

Among agri commodities, spice complex may improve slightly from

these levels due to supportive fundamentals. Chana prices may

move further towards northwards due to tight supply and crop

damage report due to unfavorable climatic conditions. However,

edible oil complex is expected to move slightly lower due to fear of

China's monetary tightening measures to control inflation in thecoming week.

World Bureau of Metal Statistics (WBMS) indicated that nickel marketexperienced deficit in first nine months of the current year. Demand

for nickel exceeded supply by 41,000 tonnes in the period between

Jan-Sep 2010.

Agri Perspective

Agri-commdities traded with mixed sentiments amid volatile note

during the last week. Top gainers were Tumeric, Cardamom, Guar

Gum and Chana. Turmeric surged sharply higher about 19% as

compared to previous week's close due to lower existing carry over

stocks and improved demand. Cardamom surged to 13.60% on

account of lower global production estimates this year as comparedto last year. Guar gum surged to 7 per cent in the last week on

projections of higher export demand. As per traders, guar seed

output may decline slightly as compared to earlier revised estimates

of 125 lakh bags due to unseasonal rains in the major growing

areas also added to the bulls. Chana prices surged to 2.70 per

cent as tight supply and there is news of crop damage due to

unseasonal rains added bullish market sentiments. However, top

losers were Chilli, Kapas, Jeera and Pepper in the last week on

account of profit taking after sharp rise in the previous week.

8/8/2019 Weekly Review 27-11-10

14/17

November 27, 2010



Research Analyst (Commodity) - Pallavi Munankar

Metals decline as China raises margins on com-modities

On a weekly basis, base metal prices delivered a mixed

performance on the LME with copper, zinc and tin ending in red,

while nickel and lead closed in the green. Strength in the US Dollar

Index (DX) and concerns with regard to the debt issues in the Euro

Zone exerted pressure on prices. The US Dollar Index (DX), tracking

performance of the greenback against a basket of six currencies

gained around 2.4% w-o-w, touching a two-month high of 80.52

at the end of the week. In an unexpected event on Tuesday, North

Korea fired scores of artillery shells at a South Korean island called

Yeonpyeong. Global markets reacted to this and huge selling

pressure was witnessed in the equity as well as the commodity

markets.

ChinaChinaChinaChinaChina raised margins on commodity futures trading on Thursday

to cool speculation in trading. The Shanghai Futures Exchange will

also raise daily price limits in order to curb speculation and cool

inflation. Margins have been raised on Copper, Aluminum, Steel

wire, Gold and Fuel Oil to 10%. The Asian giant is constantly

enforcing new steps to control its rising inflation, which recently

rose to 4.4% in October, the fastest in the last 2 years. China'smove to curb the inflation had pulled metal prices in the downward

direction.

ZincZincZincZincZinc has been the worst performer last week, as the metal touched

a low of $2080/tonne on the LME. Prices declined mainly on the

back of dollar strength and surplus of the metal in the market, as

reported by the ILZSG. According to the report, global zinc market

experienced surplus of 175,000 tonnes in the first nine months of

the current year. Global zinc consumption reached 9.285 million

tonnes while the world refined zinc production rose to 9.460 million

tonnes in 2010. On the MCX, the metal prices declined by 2.2%to close at `96.75/kg this week.

Following zinc, CopperCopperCopperCopperCopper was the second worst performer of the

week. Red metal prices slipped around 2.3% on the LME and more

than 1.5% on the MCX this week. Copper demand from China,

the world's largest metal consumer declined by 30% as imports of

copper fell to to 169,897 metric tonnes in October from the previous

of 241,711 tonnes in September.

However, the International Copper Study Group (ICSG) reported

that the world refined copper demand exceeded supply by 363,000

tonnes for the first eight months of the current year. Global refinedcopper production reached 12.653 million tonnes while the

Base Metals Weekly Update

consumption amounted to 13.016 million tonnes in the period

between January-August in 2010. Due to the ongoing strike at the

world's third largest copper mine, Collahuasi, annual output to the

tune of about 1 percent has been lost. This has created supply

concerns which would support the red metal prices

NickelNickelNickelNickelNickel was the top gainer on the LME as well on the MCX last

week. Prices touched a high of $22875/tonne on the LME. Despite

a strong dollar and rising inventories, metal prices moved higher

mainly on the back of report from the World Bureau of Metal

Statistics (WBMS) which indicated that, the nickel market experienced

a deficit in the first nine months of the current year. Demand for

nickel exceeded the supply by 41,000 tonnes in the period between

Jan-Sep 2010. As per the data, global demand increased by

119,000 tonnes in the same duration.

Outlook

In this week, we expect base metal prices to take cues from

movement in the dollar. The currency is expected to strengthen on

the back of macroeconomic concerns. China's move to control

inflation will also exert downside pressure on metals as the country

is the major driver of base metals demand. Strength in the DX and

concerns with regard to the debt issues in the Euro Zone will also

exert downside pressure on base metals this week.

MetalMetalMetalMetalMetal SupportSupportSupportSupportSupport ResistanceResistanceResistanceResistanceResistance

Copper 368.50/359.00 387.25/396.50

Zinc 93.50/91.50 99.50/102.50

Lead 99.75/95.50 106.70/109.40

Nickel 983.0/933.0 1061.0/1090.0

Aluminum 100.50/98.50 104.00/106.00

Source: Telequote

8/8/2019 Weekly Review 27-11-10

15/17

November 27, 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.20,099 per 10grams, initially moved lower but found support at 20015 levels.

Later prices moved sharply higher breaking the initial resistance

and made a high of 20,557 levels and Gold prices finally closed

the week at Rs.20,310 up by Rs 208 as compared with previous

week's close of Rs.20,102.

Last week, Silver prices opened at Rs.41,675 per kg initiallymoved higher but found good resistance at 42180. Later Silver

prices fell sharply and as expected found support just above

the expected level at 40655 level and silver finally ended the

week at 40855 with a loss of Rs.615 as compared with previous

week's close of Rs.41,470.

MCX December Crude

Last week, Crude prices opened at Rs.3762 levels initially moved

lower, but found strong support at 3699 levels. Later prices

recovered sharply towards 3867 levels and Crude finally ended

the week at Rs.3861 with a gain of Rs.108 as compared with

previous week's close of Rs.3753.

MCX February Copper

Last week, Copper prices opened at Rs.388.50 initially made a

high of 390.40 and then fell sharply lower, but found good

support at 372.90 levels. Later prices recovered towards 384

levels and copper prices finally closed the week at Rs.382.15

with a loss of Rs.5.75 as compared with previous week's close

of Rs.387.90.

KKKKKey Ley Ley Ley Ley Levels Fevels Fevels Fevels Fevels For Wor Wor Wor Wor Week :eek :eek :eek :eek :

S1 - 20,075 R1 - 20,502S1 - 20,075 R1 - 20,502S1 - 20,075 R1 - 20,502S1 - 20,075 R1 - 20,502S1 - 20,075 R1 - 20,502

S2 - 19,682 R2 - 20,711S2 - 19,682 R2 - 20,711S2 - 19,682 R2 - 20,711S2 - 19,682 R2 - 20,711S2 - 19,682 R2 - 20,711


S1 - 39,856 R1 - 41,522S1 - 39,856 R1 - 41,522S1 - 39,856 R1 - 41,522S1 - 39,856 R1 - 41,522S1 - 39,856 R1 - 41,522

S2 - 39,015 R2 - 42,430S2 - 39,015 R2 - 42,430S2 - 39,015 R2 - 42,430S2 - 39,015 R2 - 42,430S2 - 39,015 R2 - 42,430

Source: Telequote

Trend : DOWN (MCX SILVER Weekly Chart)


S1 - 374.40 R1 - 388S1 - 374.40 R1 - 388S1 - 374.40 R1 - 388S1 - 374.40 R1 - 388S1 - 374.40 R1 - 388

S2 - 365.40 R2 - 399S2 - 365.40 R2 - 399S2 - 365.40 R2 - 399S2 - 365.40 R2 - 399S2 - 365.40 R2 - 399


S1 - 3817 R1 - 3920S1 - 3817 R1 - 3920S1 - 3817 R1 - 3920S1 - 3817 R1 - 3920S1 - 3817 R1 - 3920

S2 - 3720 R2 - 3980S2 - 3720 R2 - 3980S2 - 3720 R2 - 3980S2 - 3720 R2 - 3980S2 - 3720 R2 - 3980

Recommended Strategy: Buy in the range of 3820-3800 with strict stopRecommended Strategy: Buy in the range of 3820-3800 with strict stopRecommended Strategy: Buy in the range of 3820-3800 with strict stopRecommended Strategy: Buy in the range of 3820-3800 with strict stopRecommended Strategy: Buy in the range of 3820-3800 with strict stop -----

loss below 3720 Tloss below 3720 Tloss below 3720 Tloss below 3720 Tloss below 3720 Targeting initially 3920 and then 3970.argeting initially 3920 and then 3970.argeting initially 3920 and then 3970.argeting initially 3920 and then 3970.argeting initially 3920 and then 3970.

Source: Telequote

Trend : UP (MCX CRUDEOIL Weekly Chart)

Recommended Strategy: Sell MCX Silver December in the range of 41450-Recommended Strategy: Sell MCX Silver December in the range of 41450-Recommended Strategy: Sell MCX Silver December in the range of 41450-Recommended Strategy: Sell MCX Silver December in the range of 41450-Recommended Strategy: Sell MCX Silver December in the range of 41450-

41500 with strict stop41500 with strict stop41500 with strict stop41500 with strict stop41500 with strict stop-loss above 42200 T-loss above 42200 T-loss above 42200 T-loss above 42200 T-loss above 42200 Targeting initially 39900 andargeting initially 39900 andargeting initially 39900 andargeting initially 39900 andargeting initially 39900 andthen 39400.then 39400.then 39400.then 39400.then 39400.

Recommended Strategy: Sell MCX Copper FRecommended Strategy: Sell MCX Copper FRecommended Strategy: Sell MCX Copper FRecommended Strategy: Sell MCX Copper FRecommended Strategy: Sell MCX Copper February in the range of 388-ebruary in the range of 388-ebruary in the range of 388-ebruary in the range of 388-ebruary in the range of 388-

390 with strict stop390 with strict stop390 with strict stop390 with strict stop390 with strict stop-loss above 397 T-loss above 397 T-loss above 397 T-loss above 397 T-loss above 397 Targeting initially 375 and then 367.argeting initially 375 and then 367.argeting initially 375 and then 367.argeting initially 375 and then 367.argeting initially 375 and then 367.

Source: Telequote

Trend : DOWN (MCX COPPER Weekly Chart)

Recommended Strategy: NeutralRecommended Strategy: NeutralRecommended Strategy: NeutralRecommended Strategy: NeutralRecommended Strategy: Neutral

Source: Telequote

Trend : SIDEWAYS (MCX GOLD Weekly Chart)

8/8/2019 Weekly Review 27-11-10

16/17

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 investigationsas 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 ordamage 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 importantNote: Please refer to the importantNote: Please refer to the importantNote: Please refer to the importantNote: Please refer to the important `````Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latestStock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latestStock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latestStock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latestStock 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.

8/8/2019 Weekly Review 27-11-10

17/17

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

Research TeamFundamental:

Sarabjit Kour Nangra VP-Research, Pharmaceutical [email protected]

Vaibhav Agrawal VP-Research, Banking [email protected]

Vaishali Jajoo Automobile [email protected]

Shailesh Kanani Infrastructure, Real Estate [email protected]

Anand Shah FMCG , Media [email protected]

Deepak Pareek Oil & Gas [email protected]

Sushant Dalmia Pharmaceutical [email protected]

Rupesh Sankhe Cement, Power [email protected]

Param Desai Real Estate, Logistics, Shipping [email protected]

Sageraj Bariya Fertiliser, Mid-cap [email protected]

Paresh Jain Metals & Mining [email protected] Perinchery Capital Goods [email protected]

Srishti Anand IT, Telecom [email protected]

Jai Sharda Mid-cap [email protected]

Sharan Lillaney Mid-cap [email protected]

Naitik Mody Mid-cap [email protected]

Amit Vora Research Associate (Oil & Gas) [email protected]

V Srinivasan Research Associate (Cement, Power) [email protected]

Mihir Salot Research Associate (Logistics, Shipping) [email protected]

Chitrangda Kapur Research Associate (FMCG, Media) [email protected]

Pooja Jain Research Associate (Metals & Mining) [email protected]

Yaresh Kothari Research Associate (Automobile) [email protected]

Shrinivas Bhutda Research Associate (Banking) [email protected]

Sreekanth P.V.S Research Associate (FMCG, Media) [email protected]

Hemang Thaker Research Associate (Capital Goods) [email protected]

Nitin Arora Research Associate (Infra, Real Estate) [email protected]

Ankita Somani Research Associate (IT, Telecom) [email protected]

Technicals:

Shardul Kulkarni

Date post:	09-Apr-2018
Category:	Documents
Upload:	john-perinchery
View:	213 times
Download:	0 times

Weekly Review 27-11-10

Documents