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Sector fortunes
June 09, 2008
Weightage (%)
Company FY09 EPS Estimates  FY09E PE (x) 
 1 mth ago  Latest  Revision (%) 
Automobile (3.25)Margin pressure due to rising cost of metal and energy. High interest rates and crude oil prices are impacting sales and profitability.
1.18TATA MOTORS [Get Quote]49.0945.48(7.35)10.88
1.02MARUTI [Get Quote]70.2063.50(9.54)11.17
Cement (2.77)Rising cost of lignite & coal, cap on selling price, hike in fuel prices and slowing GDP growth will hit the sector. However, low valuations (trading at $40-50 as against $100 EV/Tonne) is attractive
1.41GRASIM [Get Quote] INDs323.00297.64(7.85)7.63
0.69AMBUJA CEMENT [Get Quote]9.008.27(8.10)10.30
Engineering (9.22)Long-term prospects are good led by high demand and strong order book, while near-term concerns are high input cost and rich valuations
Banking & Fin Ser (20.19)High inflation & interest rates, and low credit offtake are negative. RBI's revised CAR norms and global worries (credit defaults) add to the woes.
7.93ICICI BANK [Get Quote]43.1740.68(5.76)16.98
5.45HDFC [Get Quote]90.97921.1325.76
3.56SBI [Get Quote]118.7121.222.1210.81
3.25HDFC BANK58.1756.9(2.18)21.66
FMCG (7.73)Concerns remain over rising input cost. Growth would be driven by better pricing environment, higher disposable income and demand
5.37I T C LTD9.809.61(1.90)21.96
2.36HIND UNILEVER 10.7010.70


Infrastructure (2.85)Most stocks have been downgraded between 5-10% due to hike in input prices like cement & metal. Concerns include rise in interest rates and slowdown in infra spending.
1.54REL INFRA45.8046.852.3023.16
1.31JAIPRAK ASSO6.956.95


Metal (5.38)Companies heavily dependent on external sources for coal and iron ore are facing steep rise in costs. The cap on domestic steel prices continue to hurt margins and profits
3.93TATA STEEL [Get Quote]132.59134.001.067.38
1.45HINDALCO [Get Quote]15.9013.30(16.35)9.29
Oil & Gas (19.36)Despite hike in petrol, diesel & LPG prices and the cut in duties, under recoveries will only be compensated marginally. Thus, uncertainties still hover on oil & gas companies, as crude oil prices continue to rise
15.79RELIANCE [Get Quote]110.2095.00(13.79)19.71
3.57ONG CORP107.82119.3010.658.46
Pharma (2.27)Outsourcing opportunities and global demand for generics will ensure steady growth. Geographically diversified players and ones with strong product pipeline will gain
1.28RANBAXY [Get Quote] LABO21.7622.503.4022.33
Power  (1.84)Rising coal prices and equipment cost are concerns. Possibility of new projects getting delayed are not ruled out either
Real Estate (1.34)High valuations have kept investors away. Firm interest rates and rising cost of steel, cement and wages, have led to sector downgrade
Technology (15.06)Rupee depreciation is positive. How the US slowdown pans out needs to be weighed in. Overall positive.
8.56INFOSYS [Get Quote] TECH      95.50    102.10       6.91      20.96
2.92SATYAM [Get Quote] COMP      27.28      32.60      19.50      16.74
2.21TCS [Get Quote]      61.60      62.90       2.11      16.24
1.37WIPRO [Get Quote]      26.85      27.20       1.30      18.89
Telecom (8.74)Growth in wireless subscribers continues to boost revenues. Going ahead, ARPUs could see a declining as telcos expand to smaller towns, besides entry of players
5.06BHARTI AIRTEL [Get Quote]44.8044.45(0.81)17.98
3.68RELIANCE COM29.6129.14(1.58)18.07

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