Index Outlook: Bears bullying the bulls: Business Line

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Sensex (17,728.6)

Bears stalked the street unhindered last week, unleashing a reign of terror. Stock prices hurtled down a bottomless cavern and benchmarks shattered key support levels. Negative news on various scams floated around, keeping investors edgy. This nervousness was further stoked by rumour-mongering and margin calls.

Angel Broking- Buy on Prakash Industries -Target Rs. 124.- 3QFY2011 Update

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  Prakash Industries – 3QFY2011 Result Update

           Angel Broking maintains a Buy on Prakash Industries with a Target Price of Rs. 124.

Higher realisation aid top-line growth: For 3QFY2011, Prakash Industries (PIL)

reported a 6.1% yoy increase in net sales to `382cr due to higher realisations and

power and sponge iron sales. In December 2010, PIL sold 15MW of power to

CSEB at `3.15/unit. During 3QFY2011, PIL sold 11kt of sponge iron (nil in

3QFY2010). Billet sales increased by 17.3% to 13kt, while wire rod sales declined

by 6.6% yoy to 99kt. Average net realisations for sponge iron, billet and wire rod

stood at `17,900, `24,000 and `27,000, respectively.

52-WEEK FLOP: MONEY MATTERS FINANCIAL SERVICES: Business Line

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Scam-hit Money Matters Financial Services (Money Matters), a non-banking finance company lost 51 per cent in a year placing it amongst the top under-performers in the market. However, the one-year return doesn't quite capture the roller coaster ride the stock actually had over the last one year.

After rising by as much as 257 per cent till the day before the alleged bribe-for-loan scam made the headlines in November 2010, the stock rapidly lost a hefty 85 per cent of its value to this date.

Goldman Sachs: Bhushan Steel - On an “upstream” trajectory, growth priced in

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Bhushan Steel (BSSL.BO)
Neutral Equity Research
On an “upstream” trajectory, growth priced in; initiate with Neutral
Investment view
We initiate coverage of Bhushan Steel (BSSL) with a Neutral rating and
12-month FY12E P/B-based target price of Rs454. While we like Bhushan
Steel’s long-term structural growth outlook driven by backward
integration through Orissa expansion, strong volume growth, and
improving EBITDA profile, we believe that the ROE profile would remain
muted in the medium term, as higher operating profits would be offset by
higher interest payments and depreciation. High leverage (net/debt to
equity of 2.9X) and lack of raw material integration would continue to be
an overhang on the stock, in an inflationary environment, in our view.

Credit Suisse: India Consumer Survey 2011 -Of ‘small-town’ bulls and ‘low-frill’ needs

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Our consumer survey of seven emerging markets


The essence of 13,000 interviews
This report is part of our inaugural Credit Suisse Emerging Consumer Survey 2011. Its aim
is to establish a unique profile of the spending patterns and preferences of a consumer
who is at the heart of a structural shift in global demand. The data and analysis carried out
in these reports, together with the accompanying Emerging Consumer Databook, provide
insights not available from traditional sources of economic information and thus proprietary
to Credit Suisse.

Click on company name for detail company report

Credit Suisse: Buy Everonn Education

Credit Suisse: buy Bharti Airtel

Credit Suisse: Buy Maruti Suzuki

Credit Suisse: Buy Hero Honda Motors

Credit Suisse: Buy HDFC Bank

Click on company name for detail company report

Credit Suisse: Buy HDFC Bank- Strong and profitable retail franchise

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HDFC Bank
(HDBK.BO / HDFCB IN)
Strong and profitable retail franchise
■  Main investment thesis: HDFC Bank is India’s 2nd largest private sector
bank with a customer base of around 20mn. It has demonstrated a
consistent track record of 30%+ earnings and loan growth over the past
decade led by diversifying revenue streams, well-contained risk, high
profitability and an efficient management team. One of the key strengths of
HDFC Bank’s business model has been the robust liability franchise with
high proportion of low cost savings and current account balances (over 50%
- highest among the peers). This provides a funding cost advantage, a stable
funding base and a large customer base to cross-sell products. Aided by
declining credit costs, improving deposit franchise and a strong Tier-I of
12.7% (as on Sept-10), we believe the bank is now well positioned to deliver
25%+ asset and earnings growth.

Credit Suisse: Buy Hero Honda Motors -Best play on rural growth

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Hero Honda Motors Ltd
(HROH.BO / HH IN)
Best play on rural growth
■  Main investment thesis: We expect the Indian two-wheeler industry to grow
at about 15% p.a. over the next few years, higher than the historic growth
trend of 11-12%. Increasing penetration in rural India, driven by rising
income and improving infrastructure and higher ownership among women in
urban areas are key growth drivers. Hero Honda (HH) dominates the Indian
two-wheeler market with a share of 44%. It has lost market share in the last
one year, giving up the extra-ordinary gains it had registered the previous
year. We believe that these have now reverted to sustainable levels and
expect HH to start growing in line with the market. We expect a similar
recovery in margins, driven by the current supply situation and competitive
structure which leave HH with tremendous pricing power.

Credit Suisse: Buy Maruti Suzuki -Best placed to capture domestic car growth

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Maruti Suzuki India Ltd
(MRTI.BO / MSIL IN)
Best placed to capture domestic car growth
■  Main investment thesis: We believe that the Indian car industry is set to
witness explosive growth for the next few years (about 20% in the next few
years). India is set to cross US$3,000 per capita (PPP), a point at which
many markets have taken off. Maruti is the market leader in the domestic
passenger vehicle industry with a 45% share. Maruti has bolstered its hold
over the market by expanding its presence across price points and closing
gaps in product offerings. Maruti has also established an unassailable lead
over competitors in distribution and service. While our concern on the
influence of the parent company (royalty, currency exposure, export
strategy) remains, we believe Maruti is the best way to play the domestic car
market in the near-to-long term horizon.

Credit Suisse: buy Bharti Airtel- Strong position in the market to sustain

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Bharti Airtel Ltd

(BRTI.BO / BHARTI IN)

FOCUS LIST STOCK

Strong position in the market to sustain

■  Main investment thesis: The Indian telecom sector is seeing a phase of

reduced competition with tariff aggressors feeling the fatigue. Incumbents

like Bharti Airtel with a strong network are able to regain market share.

Strong growth with stable pricing should also lead to a recovery of margins

that were lost during the height of the competitive intensity in FY3/10. Post

its acquisition of Zain’s African operations in mid 2010, Bharti is facing initial

integration challenges and margin pressures, which we expect to last for

another couple of quarters. However, we believe that starting mid-2011, the

company’s various initiatives should start generating margin improvements.

This should lead to a consolidated EBITDA CAGR of 26% between FY11-13.

Credit Suisse: Buy Everonn Education- Well-positioned in an under-penetrated market

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Everonn Education Ltd
(EVED.BO / EEDU IN)
Well-positioned in an under-penetrated market
■  Main investment thesis: The Indian education sector is on the cusp of
multi-year strong growth driven by a favourable set of factors and low
penetration of organised private players. Demographics are favourable with
460mn children below the age of 20. We conservatively expect Everonn to
deliver 45%-plus revenue CAGR over the next three years from its traditional
business. Future investments, currently not built into estimates, include the
school management, B-school and vocational training segments which could
drive further growth. We see short-term catalysts in the form of strong growth
and school/college additions in the Dec-10 and Mar-11 quarters. Over the
longer term, we believe that growth in new initiatives and margin leverage
from existing businesses should drive consensus upgrades.

Credit Suisse: India Cements 3QFY11: Lower volumes significantly drag down profitability

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India Cements ------------------------------------------------------------------------ Maintain NEUTRAL
3QFY11: Lower volumes significantly drag down profitability


● India Cements reported 3Q11 pre-exceptional PAT of Rs197 mn,
76% below our estimates, on lower revenue, higher interest costs
and higher tax realisation. Cement volumes stood at 2.04 mn t for
3Q11, down 23% YoY. Average realisation at Rs3,665/t went up
21% YoY and was 6% ahead of our estimates.
● Adjusted EBITDA/t stood at Rs564/t, 10% lower than our estimate
of Rs624/t. Power and fuel costs went up 25% YoY, whereas
freight costs were up 17% YoY, putting pressure on margins.
● Management expects demand in the South to pick up gradually but
expects prices there to remain stable, subject to manufacturers
maintaining discipline. Around 2.5 mn t cement volumes are
expected for 4Q FY11 and 10-11 mn t for FY12. We expect mining
from Indonesian coal mine to commence in June 2011.
● We cut our FY11 EPS estimate by 11%, as we lower our FY11
volumes assumptions. We now build in higher margins for
FY12/FY13. We revise our target price to Rs115 (from Rs116),
out of which Rs12 comes from ICEM’s stake in Indo Zinc.

Credit Suisse: India Cements 3QFY11: Lower volumes significantly drag down profitability

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India Cements ------------------------------------------------------------------------ Maintain NEUTRAL
3QFY11: Lower volumes significantly drag down profitability


● India Cements reported 3Q11 pre-exceptional PAT of Rs197 mn,
76% below our estimates, on lower revenue, higher interest costs
and higher tax realisation. Cement volumes stood at 2.04 mn t for
3Q11, down 23% YoY. Average realisation at Rs3,665/t went up
21% YoY and was 6% ahead of our estimates.
● Adjusted EBITDA/t stood at Rs564/t, 10% lower than our estimate
of Rs624/t. Power and fuel costs went up 25% YoY, whereas
freight costs were up 17% YoY, putting pressure on margins.
● Management expects demand in the South to pick up gradually but
expects prices there to remain stable, subject to manufacturers
maintaining discipline. Around 2.5 mn t cement volumes are
expected for 4Q FY11 and 10-11 mn t for FY12. We expect mining
from Indonesian coal mine to commence in June 2011.
● We cut our FY11 EPS estimate by 11%, as we lower our FY11
volumes assumptions. We now build in higher margins for
FY12/FY13. We revise our target price to Rs115 (from Rs116),
out of which Rs12 comes from ICEM’s stake in Indo Zinc.

Buy CCCL- Target Price: Rs66; Q3FY11 overview: Centrum

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Q3 disappoints; CMP factors all –ves
Consolidated Construction Consortium’s (CCCL) Q3FY11
numbers were disappointing. Revenue at Rs5bn was 17%
below our estimate of Rs6bn. EBITDA and PAT also came
8% and 28% below estimates. However, EBITDA margin
at 9.7% was higher than our estimate of 8.8%. Orderbook
intake during Q3FY11 was Rs2.5bn (Q4FY11TD it is
Rs8.3bn). Current OB is at Rs52bn. Execution has been
ramped-up at the Chennai airport project worth Rs12bn
(expected to be completed by Dec 2011). At CMP of Rs54,
all negatives have been factored-in. However, valuation
of 9.9x FY12E P/E is on a higher side. We recommend
Ahluwalia Contracts (6.3x FY12E P/E) among small caps.
We have cut our FY12 earnings estimates by 27%, but
maintain Buy with a target price of Rs66 (21% upside).

India Autos: Moderating growth; top pick is M&M :: CLSA

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Moderating growth
In Jan-11, India’s car sales grew 26% YoY, 2Ws grew 18% YoY while CVs
grew 11% YoY. Growth rates have started to moderate as the high base
of early-2010 is kicking in. We expect growth of 20%, 12% and 0% for
cars, 2Ws and M&HCVs in FY12. In cars, Maruti’s share slipped 410bps
MoM to 49% with Tata Motors and Ford being the gainers. In CVs, Tata
Motors lost share in trucks to ALL and in LCVs to M&M. In 2Ws, Bajaj
regained some share from Hero Honda in bikes. We maintain a cautious
stance on the sector due to slowing growth and rising competition and
recommend a selective investment approach. Our top pick is M&M.

CLSA: Indian financials-3Q results review

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3Q results review
In 3QFY11, banking sector earnings growth surprised positively (up 22%
YoY) but most other sectors disappointed. Key positives were healthy
loan growth and better than expected NIMs, but we see pressure going
forward as loan growth moderates and margins contract. Asset quality
pressures seem to be moderating and we believe that this will be the key
to earnings growth in FY12. We were positively surprised by results of
Axis and BOI.

CLSA: India strategy- Ownership patterns

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Ownership patterns
􀂉 Our analysis of the shareholding pattern of the BSE-500 companies (combined
market cap US$1.3trn now – 94% of total market cap) reveals that during
4QCY10, FIIs increased market holding by 25 bps to 15.5%. During 4QCY10,
FIIs net invested US$10bn into the markets. FII holding is still 90bps lower
than 2007 peak.

Rural Electrification (REC) -Loan growth moderates; target price of Rs320:: CLSA

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Rural Electrification -Loan growth moderates
For 3QFY11 REC reported net profit of Rs6.6bn, up 40% YoY, ahead of our
estimate. We were positively surprised by 20bpQoQ expansion in spreads
led by higher share of unhedged forex loans, but believe that this may
pose risk of forex losses if Rupee depreciates. Loan growth moderated to
21% due to lower growth in T&D segment, but management sees some
pick-up going forward. We expect REC to report 23% Cagr in loans over
FY10-13CL and this will drive 19% Cagr in net profit. Maintain OPF.

Commodities Comment -Solid steel demand growth in 2011 :Macquarie

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Commodities Comment
Solid steel demand growth in 2011
Feature article
􀂃 For steel, 2010 was the year when the ex-China demand rebound pushed
production rates to a new record high of over 1.4 billion tonnes. While 2011
may prove much less spectacular, in our view it will still exhibit an above trend
YoY growth of 6.3%, taking crude steel demand past 1.5 billion tonnes. While
slowing rates of Chinese demand growth and inflationary concerns in the
emerging markets will prevent a repeat of double digit YoY rises, this situation
is more than enough to keep the steel raw material markets tight. However,
as is typical in the steel sector, the path to growth will not be smooth, and we
expect to see a production pullback into mid-year as the demand cycle turns.

CLSA: United Spirits- Higher RM price factored in: target price of Rs1,200

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United Spirits- Higher RM price factored in
United Spirits’ 3Q recurring earnings grew 6.5% YoY, 12% lower than
estimates due to higher ENA prices. But, we believe that the 16%
underperformance in last three months largely captures the impact. The
company’s current spot ENA px is already down 4% from 3Q and full
impact will be visible in FY12. We now factor in only 2% correction (9%
earlier) in ENA prices from the current levels driving the earnings
downgrade of 10-14%. Our SoTP based target price of Rs1,200/share
implies 20xFY13 earnings. 40% EPS Cagr over FY11-13 is a key positive.

ABG Shipyard – 3QFY2011 Result Update:: Angel Broking

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  ABG Shipyard – 3QFY2011 Result Update

Angel Broking maintains a Neutral on ABG Shipyard.

For 3QFY2011 (consolidated), ABG Shipyard (ABG) reported subdued

performance, with cost pressures weighing on margins. During the quarter, ABG

witnessed revival in order inflow (~`2,370cr in 3QFY2011) compared to a listless

FY2010. The company’s unexecuted order book (OB) stands at ~`7,600cr and

executable by FY2014. Following ramp up at the Dahej yard, ABG’s execution

has been healthy and it delivered ten vessels during 9MFY2011. ABG’s current

net debt has increased to ~`2,200cr (D:E - 1.8x) in 3QFY2011 compared to

~`1,825cr in 2QFY2011 (D:E - 1.5x). Moreover, headwinds like increase in input

costs continue to dog the industry and uncertainties of the subsidy scheme persist.

At current levels, the stock trades at fair valuations in line with its global peers.

We remain Neutral on the stock.

Cognizant 4Q: Implications for Indian IT Services:: Citi Research

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Indian IT Services
Cognizant 4Q: Implications for Indian IT Services
 CTSH continues to outperform peers — CTSH (CTSH.O; US$75.40; 1M),
covered by our US IT Services analyst Ashwin Shirvaikar, reported a strong Q4
with revenue growth of 7.7% QoQ ($1.31b). The constant currency growth at
~7.2% qoq is again ahead of peers (TCS: 5.8%, Infosys (INFY): 4.7% , Wipro:
4.1%, HCLT: 6.5%).

Credit Suisse, Ranbaxy- Low margin of safety: best case already priced in

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Ranbaxy--------------------------------------------------------------------- Maintain UNDERPERFORM
Low margin of safety: best case already priced in



● We assume coverage of Ranbaxy with an UNDERPERFORM
rating, but increase our target price to Rs450 (from Rs275).
● We agree CY11 does not represent normalised margins for
Ranbaxy and thus we value the company at CY12. However, the
margin of safety is still low with the stock, as it is factoring in all
FTF clearances, no penalty on resolution of the US FDA and DoJ
cases, and perfect execution under project Viraat in India.
● On Lipitor, we see a low probability of subsequent ANDA filers
triggering Ranbaxy’s exclusivity before Nov-11, as Pfizer is likely
to settle with them. However, if Ranbaxy misses the Nov-11
launch, upside will be limited, as Watson would launch as
authorised generic, even if the Ranbaxy launch is delayed.
● We value Ranbaxy at 20x CY11E or 18x CY12E, and value the
base business at Rs330/share. Additionally, the value of its FTF
pipeline is Rs120/share in our target price of Rs450. We increase
CY10-12 estimates by 29%/82%/44%, as we incorporate Aricept
and Actos FTFs, assume resolution of the Dewas facility in CY11
and factor in a pick-up in sales and margins in the US and India.

Bharat Petroleum (BPCL): 3QFY11 results :: CLSA

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3QFY11 results
BPCL reported net profit of Rs1.9bn in 3Q –below our estimate due to lower than
expected inventory gains and a prior period tax write off. BPCL has met only 44%
of our full year estimate implying that 4Q profits would be dependent on increase
in government support from 45% in 9MFY11 to 60% of under-recoveries for full
year. This is uncertain as is the possibility of any policy change or diesel price hike
while fundamental headwinds from rising crude and single digit return ratios
persist. In this context, BPCL’s 1.5x Mar10 PB is rich; notwithstanding its E&P
footprint. We revise our rating to UPF after the recent stock price correction.

Buy PTC India – 3QFY2011 Result; Target Price of Rs. 135: Angel Broking

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PTC India – 3QFY2011 Result Update

Angel Broking maintains a Buy on PTC India with a Target Price of Rs. 135.

PTC India (PTC) posted an in-line performance on the bottom-line front during

3QFY2011. The company’s net profit for the quarter rose by 139% yoy during the

quarter, aided by strong performance on the operating profit. Operating profit for

the quarter rose by 292.5% yoy to `41cr, on account of higher trading volumes (up

31% yoy) and an increase in trading margins as per the new CERC regulations to

7paise from the earlier 4paise, which have taken full effect. Going ahead, we

expect PTC to witness healthy volume growth due to addition of ~470MW and

~4,000MW to its long-term trading portfolio in FY2011 and FY2012, respectively.

We maintain Buy on the stock.

Asia Technology Strategy-Reality begins to bite: Credit Suisse

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● During the past two days (9 Feb close*), Taiwan tech gave up two
months worth of performance. YTD, both MSCI AxJ tech and
TWSEELEC are now flat.
● Performance continues to remain quite lopsided. Of the 20 USD3
bn+ tech stocks in Taiwan, only six are up whereas the other 14
are down YTD. Only ten of the 28 3 bn+ stocks in Korea/Taiwan
tech are witness 2011 EPS upgrades.
● As we argued last month, we did not expect the mismatch
between macro trade (buy developed market proxies) and the
bottom-up tech reality to last for too long – either underlying data
needed to improve or stock prices would correct. Data, particularly
on PC units and overall earnings, has weighed in worse than
expected in recent weeks and we believe earnings cuts have
further to go.
● Two of our top sell ideas (Mediatek, Acer) are already down
significantly YTD but we believe Mediatek could have more
downside. Quanta appears susceptible as PC units remain weak
and margins could disappoint. In Korea, LGE and Semco appear
worrying to us.
● Our already selective portfolio leaves little room for us to cut
further without starting to hold cash.

Credit Suisse, Cipla - Generic combination inhalers approaching?

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Cipla ------------------------------------------------------------------------------------- Maintain NEUTRAL
Generic combination inhalers approaching?


● We assume coverage of Cipla with a NEUTRAL rating and
increase our target price to Rs300 (from Rs290).
● We expect Cipla’s near-term growth to be muted as it is growing
below the industry average in the domestic market and growth in
the export market should pick up in 2H12 as the Indore SEZ
ramps up meaningfully.
● Recently, news flow on generic combination inhalers in Europe has
picked up. Sandoz has filed for generic Seretide in Europe, Teva
plans to file for generic Symbicort in CY11 and Cipla’s partner
Neolab has been active in testing its inhaler against Seretide. Cipla
has four-five partners in Europe for the Inhaler opportunity – the
combined size of Seretide and Symbicort is US$3.5 bn.
● We value Cipla at 21x FY12E EPS, at the sector average multiple.
We do not value the generic combination inhaler opportunity, as it
is at least two years away, but note that as news flow around the
same picks up, Cipla’s multiple may benefit from it. We reduce our
FY11/12/13 estimates by 17/14/11% as we reduce our estimate
for technology license income and factor in slower ramp up of the
Indore SEZ.

Credit Suisse, Buy Glenmark- Balance sheet improvement critical for rerating

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Glenmark------------------------------------------------------------------------ Maintain OUTPERFORM
Balance sheet improvement critical for rerating


● We assume coverage of Glenmark with an OUTPERFORM and a
target price of Rs360 (versus Rs390 earlier). We expect a strong
EBITDA growth of 26% over FY11-13 in the base business, driven
by a balanced mix of profit growth across geographies.
● The current market price assigns no value to the R&D pipeline, as
these molecules are still in phase I and phase II. However, the
milestone payments associated with the out-licensing of these
molecules are material and could surprise positively.
● Glenmark trades below the sector average due to its low RoCE
and stretched balance sheet. Margins have been subdued in 9M
FY11, but we expect margins to recover in FY12, as some of the
niche products are launched in the US and Latin America turns
EBITDA positive. Balance sheet did improve significantly in 2Q11,
but as more improvement is visible, the stock should rerate.
● We value Glenmark at 18x FY12E earnings to value the base
business at Rs336/share. Additionally, the value of its FTF
pipeline is Rs24/share in our target price of Rs360. We cut our
forward estimates (FY12/13 by 17/8%), as we remove the Tarka
upside from our model.

MOIL – 3QFY2011 Result Update: Target Price of Rs. 426; Angel Broking

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MOIL – 3QFY2011 Result Update

Angel Broking recommend Accumulate on MOIL with a Target Price of Rs. 426

Flat top-line performance: For 3QFY2011, MOIL reported 1.9% yoy growth in net
sales to `253cr, mainly due to higher revenue from the mining segment, which
increased by 3.8% yoy to `239cr (94% of MOIL’s net sales). The company’s
manganese ore sales volume stood at 239,000 tonnes and average blended
realisations stood at `10,005/tonne. For 4QFY2011, MOIL has lowered its prices
for some grades of manganese ore and expects realisations to remain flat qoq on
account of improvement in its product mix.

Buy ARSS Infra: Keepin’ the Road Hot:: Elara research,

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Keepin’ the Road Hot
Subdued topline, margin expansion keeps earnings in line
ARSS reported a depressing topline growth of 14.2% YoY at INR3bn (vs
our expectation of INR3.9bn), impacted by the extended monsoon
season during Q3FY11 across the Eastern region of the country. A
277bps YoY expansion in OPMs to 21.8%, led majorly by savings on
raw material and direct expenses, though ensured a 30.8% YoY rise in
operating profits to INR659mn. However, higher interest (+109.4%
YoY) and depreciation (+160.3% YoY) charges played a spoilsport,
containing net profits growth to a meagre 2% YoY to INR261mn.
Diversified order backlog, poised for growth
ARSS closed FY10 with an outstanding order backlog of ~INR35bn
(2.3x FY11E revenues). While high margin railways (45%) and road
projects (43%) have dominated majority of the order book in the past,
diversification into execution of irrigation and canal construction
works is presently on. The same is expected to mitigate the risk of
slowdown in revenues from any segment due to unforeseen
circumstances. The execution period of the present order backlog
stands at 18-24 months, with an average ticket size of INR1-1.25bn
Tone down earnings by 5.8% for FY12, upgrade to ‘Buy’
We tone down our earnings estimates for FY12 by 5.8%, factoring in a
higher than anticipated interest charges on account of rising working
capital requirements. Backed by the 18-24 months revenue visibility
pertaining to the present order backlog, ARSS looks set to deliver a
~30% earnings CAGR over the FY11-13 period. We remain confident
on its management to capitalize on the high growth opportunities in
the sector while maintaining the exhibited performance and
competitiveness. Post the near 43% fall in the stock price over the past
three months, valuations seem attractive for investors looking to make
fresh entries. Upgrade to ‘Buy’ with Mar’12 based price target of
INR796.

Credit Suisse: India Pharmaceuticals - OVERWEIGHT : Beyond the pilot stage

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● Indian pharma has outperformed the market due to superior
growth prospects and continued interest of MNCs in Indian firms.
The growth trajectory in the key markets is still the same and thus
we assume coverage with a positive view on the sector.
● Presence of Indian companies in the non-urban markets of India
is picking up and some companies have increased doctor
coverage to 70%. These ventures are now beyond the pilot stage
and have already started contributing to the volume growth.
● Exports still hold significant promise as Indian firms have a low
market share of 10% in the US and 5% in the emerging markets
(EMs). In the US, companies are moving up the curve by investing
in branded portfolio and niche therapies while growth in EMs is
even stronger with presence limited to just one-two markets.
● Our top picks are Lupin and Glenmark. Both should re-rate as the
margins for their base business improve. Fondaparinux approval
is key for Dr. Reddy’s; buy fresh Russian headwinds and Allegra
OTC switch is a near term dampener. We maintain NEUTRAL on
Sun and Cipla and UNDERPERFORM on Ranbaxy and Glaxo

Forthcoming Earnings Results -February 12th, 2011

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12-Feb-11
Company	Company	Company	Company	Company
Abee Info	Crazy Infotech	K Sera Sera	Phoenix Intl	Sujana Metal
Adani Enter	Datanet Sys	Kalpena Plastiks	Prabhav Inds	Sujana Uni
Agro Dutch	DCM Shriram Inds	Kamanwala Hous	Precision Pipes	Sun Granite
Aishwarya Tele	Devine Impex	Kanishk Steel	Premier Expl	Sunteck Realty
Alka Securities	Dhanlaxmi Cotex	Kemrock Inds	Prime Sec	Sunteck Wealthmax Investments
Allied Comp	Diamant Infrastructure	KEW Inds	Professional Diam	Super Crop
Amar Remedies	Dredging Corp	KGN Inds	Pushpsons Inds	Supreme Infra
Anil Special	Empee Dist	Khaitan Elect	Quadrant Televentures	Supreme Tex
Anjani Syn	Empee Sugars	Khaitan India	Raasi Enter	Surana Inds
Aravali Sec	Enbee Trade	Kinetic Motor	Rabha Plast	Suryachakra Pow
Arihant Found	Eureka Inds	KLG Systel	Radaan Media	SV Electricals
Arunjyoti Enterprises	Everlon Syn	Kosian Inds	Rajath Finance	Sybly Inds
Arvind Chem	Fame India	Kothari Prod	Rana Sugars	TARAPUR TRA
Ashok Organic	Fluidomat	Krishna Deep	RAS Resorts	Tashi India
Asian Star	Gallantt Ispat	KSK Energy	Rathi Graphic	Tera Software
Atco Corp	Gennex Lab	Kuvam Intl	Ravi Kumar Dist	Terai Tea
Atcom Tech	GIVO	Lakshmi Prec	Ravinay Trad	Texmo Pipes
ATN Intl	Gulshan Poly	Lincoln Pharma	Reliance Cap	Thakral Serv
Autoriders Fin	Hartron Comm	Mahamaya Steel	Riga Sugar	Time Techno
Autoriders Intl	Hathway Bhawani	Mahan Inds	Ruchi Strips	Tirupati Inks
Avanti Feeds	Himatsingka Seide	Mahashree Trad	Salzer Elect	Transfreight Co
Baid Leasing	Hind Inds	Man Aluminium	Sambhaav Media	Transgene Bio
Bajaj Global	Hindalco Inds	Manjushree Techno	Samtex Fashions	Tricom India
Bedmutha Inds	Hindustan Appl	Medicamen Bio	Sandur Mang	Triveni Engr
BF Invest	Hindustan Compo	Mercator Lines	Satra Prop	Twilight Litaka
Bheema Cem	Hindustan Dorr	Milestone Glob	Seasons Furn	United Van Der
Bimetal Brngs	Hiran Orgochem	Modipon	Seasons Tex	Unity Infra
BL Kashyap	HP Cotton	Neemtek Org	Shah Constr	Urja Glob
Bloom Dekor	India Glycols	Neha Intl	Sharp India	Vallabh Steel
Brady & Morris	Indian Acrylics	Neo Corp	Shikhar Leas	Vardhman Hold
Broadcast Init	Indoasian Proj	Nila Infra	Shivam Auto	Vardhman Inds
Calcom Vision	Indu Nissan Oxo	NK Inds	SKY Inds	Vegepro Foods
Camson Bio	Innovation Soft	Omega Interact	SMC Credits	Vintage Sec
Chandni Tex	Intense Tech	Orient Press	Solid Stone	Vippy Inds
Chartered Log	IVR Prime	Oriental Trimex	Spanco	Vippy Spinpro
Choice Intl	IVRCL Infra	Oscar Global	SPECTACLE	WEBEL SL ENE
Chordia Food	Jai Mata Glass	Pacific Cotspin	SQL Star	Western India Cot
Clarus Finance	Jalgaon Rerol	Panchsheel Org	Sri Malini Spinn	WH Brady
Classic Elect	JBM Auto	Parth Aluminium	Steel Strips	Zenith Comp
Clutch Auto	JK Cement	PBA Infra	Stelco Strips	Zenith Info
CMI FPE	Jupiter Biosc	Pearl Engr	STL Global	Zenzy Technocrats
Compulearn	JVL Agro Inds	Pee Cee Cosma	Suditi Inds