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IGL to face limited impact of slowdown in economy. Debt free company. Dividend yield of 3.8% Valuation: At Rs.104, the stock trades at 4.3x EV/EBIDTA, 2.1x book value, 7.9x earnings and 5.6x cash earnings based on FY09E. ACCUMULATE with unchanged price target of Rs.135 based on DCF method of valuation. Siemens India Ltd Capex of Rs 2.0 bn likely for FY09. Cash position comfortable at Rs 9.0 bn. Stock trading at 11.3x FY09 earnings. REDUCE with a price target of Rs.260.

IIP slowing down The Index of Industrial Production (IIP) grew by 4.8% for September 2008. The September 2008 IIP growth numbers has confirmed the slowing economic growth trend observed during past few months. Core Infrastructure industries slowing down The index of infrastructure industries holds a 26.7% weight in Index of Industrial Production (IIP). The index reflecting growth in the core infrastructure sector has indicated a relatively slower growth for the April-September 2008 period at as 3.9% . RBI Measures to boost liquidity CRR and Repo rate cut by 350bps cut in CRR to 5.50% from and also a 150bps reduction in Repo Rate to 7,5% from 9.0% RBI has allowed HFCs to raise up to $10 mn or 50% of the net owned funds as ECB. RBI reduced the provisioning on standard advances in the commercial real estate sector, personal loans, capital market exposure and NBFCs (ND) to 0.4% from 2.0% previously. Corporate capital expenditure to grow at a slower pace in 2008-09. For 2008-09 companies ha