Angel Top Picks - April 2017

Rising exports and buoyancy in FDI has resulted in rupee appreciating by 5% since

Top Picks

November-16. The political stability and improving consumer sentiment is setting a

Company

CMP (`)

TP (`)

stage for growth in the economy and with bright prospects, we expect further

Banking/NBFC

growth in FII and DII inflows indicating market sentiment going ahead.

Dewan Housing

385

460

Equitas Holdings

170

235

Political stability to result in bringing new reforms: The results of recently concluded

Consumption

assembly elections indicate that growth politics is preferred over the populist

politics. We believe that the current political environment may result in high

Asian Granito

370

390

political stability over the next seven years, giving more clarity on growth of the

Bajaj Electricals

348

395

economy and hopes of introducing more reforms. The results strengthen

Blue Star

695

760

government’s ability to bring bigger reforms which can get passed with rising

Mirza International

107

strength in the upper house. India’s demographics remain extremely attractive and

Siyaram Silk Mills

1,700

1,872

we believe that political stability and reforms hold the key to unlock this potential.

Media

Jagran Prakashan

185

225

Higher Exports and FDI result in 5% rupee appreciation: Improving macros and

TV Today

277

344

strong demand recovery after demonetisation, has resulted in high confidence on

the economy. With the hopes of faster growth and political stability, FDI inflows

Real Estate/Infra/Logistics/Power

have remained very strong this year. India’s exports sector has also seen a revival

KEI Industries

195

207

which together with the higher FDI inflows and stable crude prices has helped to

Mahindra Lifespace

404

522

reduce the current account deficit to 0.7% of GDP in 9MFY17 vs. 1.4% in FY16.

Navkar Corp.

181

265

Overall this has led to rupee appreciating by 5% since November-2016 indicating

Pharma

that health of the economy remains very strong.

Alkem Lab.

2,207

2,311

Source: Angel Research;

Note: CMP as of April 5, 2017

Exhibit 1: Rupee appreciates by 5% since Nov-16

Source: Angel Research

FIIs returning with strong statement: The strong economic outlook and

appreciating rupee has seen FIIs returning to the Indian equities. In 4QFY17, FII

invested `40,052cr in equities vs. `-30,727cr in 3QFY17. The surge was mainly

due to the record inflow of `31,326 cr received in March-2017 as FIIs have turned

bullish on the Indian economy. While DIIs have been participating heavily in the

last three years, the FIIs renewed confidence is likely to result in increment inflows

in Indian equities, thanks to rupee appreciation; their USD returns will go up

further. Overall there is strong optimism in the domestic as well as foreign

investors which will result in markets going up further from the current levels.

Please refer to important disclosures at the end of this report

Top Picks Report | April 2017

Stock Info

Dewan Housing

CMP

385



3^rd largest private sector housing finance company: We expect DHFL’s AUM to

460

grow at a CAGR of 21% over FY2016-18, as demand for housing in the middle

Upside

19%

and low income group picks up, while PAT CAGR is expected to be 23%.

Sector

Financials

 Funds received from DHFL Pramerica Life Insurance, gives a boost to growth:

Market Cap (` cr)

12,042

DHFL sold 50% stake held by it in DFHFL Pramerica Life Insurance Co Ltd to

its wholly owned subsidiary for a consideration of Rs 2000.5 cr, which added

Beta

1.6

Rs 1969 cr to its net worth and increases its CAR by 400 bps, which should

52 Week High / Low

392 / 183

fuel growth for next 2-3 years.

 Lower cost of funds will help maintain NIM: DHFL has replaced high cost bank

3 year-Chart

loans with the NCDs raised and it will continue to reduce its dependence on

400

banks as its source of funding. This should help it maintain its NIM of 2.9%.

350

The recent capital received via stake sale should also aid to the NIM.

300

250

 Outlook: We expect the company to post a healthy loan book CAGR of 21%

200

over FY2015-18E, which is likely to translate in earnings CAGR of 23%, over

150

the same period. The stock currently trades at 1.4x FY2018E ABV. We maintain

100

Buy on the stock, with a target price of `460.

Key Financials

Y/E

Op. Inc NIM

PAT

EPS

ABV ROA ROE P/E P/ABV

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

Source: Company, Angel Research

FY2017E

2,050

2.9

923

29.5

189

1.2

16.3

13.0

2.0

FY2018E

2,500

2.9

1,145

36.6

281

1.2

14.8

8.9

1.4

Source: Company, Angel Research

Stock Info

Equitas Holdings

CMP

170

 Early mover advantage in the SFB category: Equitas was one of the ten NBFCs

235

to get the license to start a small finance bank (SFB). As the entire book of

Upside

38.0%

Equitas qualifies for PSL, meeting the 75% PSL target will not be a challenge.

Sector

Financials

The micro finance segment of Equitas has witnessed slowdown in the near

term post demonetization, but should see a bounce back in FY18.

Market Cap (` cr)

5,612

 Asset quality and return ratios are likely to remain stable: The recent quarter

Beta

0.9

saw some slowdown due to demonetization, however having converted into

52 Week High / Low

206 / 134

SFB the long term outlook has improved for it. We don’t expect any major

deterioration in the asset quality going ahead.

3 year-Chart

 NIM likely to remain healthy: After conversion to SFB the company has started

250

raising deposits at a lower cost vs borrowings leading to better cost of funds.

200

Hence we expect the NIM to remain strong at ~11%, going ahead.

150

 Outlook: We expect the company to post a strong loan book & earnings

CAGR of 38% & 37% over FY2016-18E. The stock currently trades at 2.3x

100

FY2018E ABV. We maintain Buy on the stock, with a target price of `235.

Key Financials

Y/E

Op. Inc NIM

PAT

EPS

ABV ROA ROE P/E P/ABV

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017E

9,39

11.7

224

5.8

68.2

2.8

10.9

29.3

2.5

Source: Company, Angel Research

FY2018E

1,281

11.5

315

8.2

77.6

2.8

11.5

20.7

2.3

Source: Company, Angel Research

April 6, 2017

Top Picks Report | April 2017

Stock Info

Asian Granito

CMP

370

 AGIL’s current, vitrified sales (35%) are lower as compared to its peers like

390

Somany Ceramics (47%) and Kajaria Ceramics (61%). Recently, AGIL has

Upside

launched various products in premium segment. Going forward, we expect

AGIL’s profit margin to improve due to increase in focus for higher vitrified

Sector

Ceramics

product sales, which is a high margin business.

Market Cap (` cr)

1,112

 AGIL is continuously putting efforts to increase the B2C sales from the current

Beta

1.4

level (35% in FY16). It is expected to reach up to 50% in next 2-3 years on the

52 Week High / Low

380 / 144

back of various initiatives taken by AGIL to increase direct interaction with customers

like strengthening distribution network, participation in key trade exhibition, etc.

3 year-Chart

 In July FY2016, AGIL acquired Artistique Ceramic which has a better margin

400

profile. Going forward, we expect the company to improve its operating

350

margin from 7.5% in FY16 (excluding merger) to

12-12.5% in coming

300

financial year. Artisique Ceramics has a contract with RAS GAS to supply

250

quality natural gas at a discounted rate of 50% to current market rate, which

200

would reduce the overall power & fuel cost of the company.

150

100

 We expect AGIL to report a net revenue CAGR of ~8.5% to ~`1,169cr and

net profit CAGR of ~39% to `48cr over FY2016-18E. We recommend an

Accumulate rating on the stock.

Key Financials

Y/E

Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

Source: Company, Angel Research

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017E

1,060

12.2

12.7

9.5

29.2

2.8

11.1

1.4

FY2018E

1,169

12.5

15.9

10.6

23.2

2.5

9.5

1.2

Source: Company, Angel Research

Stock Info

Bajaj Electricals

CMP

348

 The company is among the top 4 players in the consumer durables space

395

across all its product categories (leader in small appliances; number-4 in fans

Upside

14%

and lighting). It has a strong distribution reach with 4,000 distributors

reaching out to 400,000 retailers.

Sector

Cons. Durable

 In the 3 years preceding FY2016, the company’s E&P segment had been

Market Cap (` cr)

3,525

underperforming owing to cost overruns and delays in project executions.

Beta

0.9

However, the segment has turned around in FY2016 on the profitability front

52 Week High / Low

388 / 203

and delivered a healthy EBIT margin of ~6% for the year. Currently the

segment’s order book stands at `2,480cr.

3 year-Chart

 With expectation of timely execution of new projects in the E&P segment and

400

with the Lighting and Consumer Durables segments expected to benefit from

350

an improvement in consumer sentiments going forward, we expect the

300

company’s top-line to grow at a CAGR of ~8% to `5,351cr and bottom-line to

250

grow at a CAGR of 20% to `138cr over FY2016-FY2018E. We recommend an

200

Accumulate rating on the stock.

150

100

Key Financials

Y/E

Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017E

4,801

5.7

105

10.4

12.4

33.4

4.1

11.3

0.7

FY2018E

5,351

6.2

138

13.7

14.5

25.4

3.7

9.8

0.7

Source: Company, Angel Research

April 6, 2017

Top Picks Report | April 2017

Blue Star

Stock Info

CMP

695

 BSL is one of the largest air-conditioning companies in India. With a mere

760

3% penetration level of ACs vs 25% in China, the overall outlook for the room

Upside

air-conditioner (RAC) market in India is favourable.

Sector

Cons. Durable

 BSL’s RAC business has been outgrowing the industry by ~10% points over the

last few quarters, resulting in the company consistently increasing its market

Market Cap (` cr)

6,646

share (~7% in FY2014 to 10.5% at present). This has resulted in the Cooling

Beta

0.6

Products Division (CPD)'s share in overall revenues increasing from~23% in

52 Week High / Low

723 / 390

FY2010 to ~42% in FY2016 (expected to improve to ~47% in FY2018E). With

strong brand equity and higher share in split ACs, we expect the CPD to

3 year-Chart

continue to drive growth.

800

 Aided by increasing contribution from the CPD, we expect the overall top-line

700

to post a revenue CAGR of ~16% over FY2016-18E and margins to improve

600

from 5.3% in FY2015 to 7.3% in FY2018E. Moreover, the merger of Blue Star

500

Infotech has infused cash and strengthened the balance sheet. We

400

300

recommend an Accumulate rating on the stock.

200

Key Financials

100

Y/E

Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017E

4,283

5.9

141

14.9

20.4

46.7

9.1

28.5

1.6

Source: Company, Angel Research

FY2018E

5,077

7.3

211

22.1

26.4

31.4

7.6

20.5

1.3

Source: Company, Angel Research

Mirza International

Stock Info

CMP

 In the branded domestic segment, we expect the company to report a ~16%

107

CAGR over FY2016-18E to `235cr. We anticipate strong growth for the

company on the back of (a) the company’s wide distribution reach through its

Upside

20%

1,000+ outlets including 120 exclusive brand outlets (EBOs) in 35+ cities and

Sector

Footwear

the same are expected to reach 200 over the next 2-3 years and (b) strong

Market Cap (` cr)

1,072

branding (Red Tape) in the shoes segment.

Beta

1.5

 MIL’s major export revenue comes from the UK (73%), followed by the US

52 Week High / Low

111 /69

(14%) and the balance from ROW. Export constitutes ~75% of the company’s

total revenue. We expect the company to report healthy growth over the next

2-3 years on back of recovery in the UK market, strong growth in the US market

3 year-Chart

and with it tapping newer international geographies like the Middle East countries.

160

 In FY2016, the company acquired Genesis Footwear which has a better

140

120

margin profile than it. The deal resulted in MIL’s EPS increasing by ~4% and

100

ROE improving from 15.9% to 17.5%. Further, due to this merger, the

company’s capacity has increased from 5.4mn to 6.4mn units.

 We expect MIL to report a net revenue CAGR of ~7% to ~`1,069cr and net

profit CAGR of ~8% to `90cr over FY2016-18E. We have a Buy rating on the

stock and target price of `107.

Key Financials

Y/E

Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

Source: Company, Angel Research

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017E

963

17.2

6.1

15.0

14.5

2.2

7.7

1.3

FY2018E

1,069

18.0

7.5

15.7

11.9

1.9

6.5

1.2

Source: Company, Angel Research

April 6, 2017

Top Picks Report | April 2017

Stock Info

Siyaram Silk Mills

CMP

1,700

 SSML has strong brands which cater to premium as well as popular mass

1,872

segments of the market. Further, SSML entered the ladies' salwar kameez and

Upside

10%

ethnic wear segment. Going forward, we believe that the company would be able to

Sector

Textile

leverage its brand equity and continue to post strong performance.

Market Cap (` cr)

1,594

 The company has a nationwide network of about 1,600 dealers and business

partners. It has a retail network of 160 stores and plans to add another

Beta

0.8

300-350 stores going forward. Further, the company's brands are sold across

52 Week High / Low

1,774/968

3,00,000 multi brand outlets in the country.

 Going forward, we expect SSML to report a net sales CAGR of ~7% to

3 year-Chart

~`1,948cr and adj.net profit CAGR of ~9% to `103cr over FY2016-18E on

2,000

back of market leadership in blended fabrics, strong brand building, wide

1,800

1,600

distribution channel, strong presence in tier II and tier III cities and emphasis

1,400

on latest designs and affordable pricing points. At the current market price,

1,200

1,000

SSML trades at an inexpensive valuation. We have an Accumulate

800

recommendation on the stock and target price of `1,872.

600

400

Key Financials

200

Y/E

Sales

OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017E

1,652

11.6

92.4

14.7

18.4

2.7

10.1

1.2

Source: Company, Angel Research

FY2018E

1,857

11.7

103

110.1

15.2

15.4

2.3

8.8

1.0

Source: Company, Angel Research

Stock Info

Jagran Prakashan

CMP

185

 We expect JPL to register a net sales CAGR of ~12% over FY2016-18E, on

225

back of (a) strong growth in advertising revenue due to improvement in GDP

Upside

22%

growth, and (b) improvement in circulation revenue owing to combination of

increase in cover price and volume growth.

Sector

Media

 Further the acquisition of Radio City would also boost the company's revenue

Market Cap (` cr)

6,033

going ahead. Radio City has ~20 stations across 7 states in the country and is

Beta

0.6

second only to ENIL in all its operating circles, ie Delhi, Mumbai, Bengaluru,

52 Week High / Low

213/156

Chennai, Ahmedabad, Hyderabad, Pune and Lucknow. The company covers

~51% (~66mn people) of the total radio population.

3 year-Chart

 Raw material prices have been in a declining trend. Thus, considering lower

250

news print costs, healthy sales, and higher margins in the radio business, we

200

expect an adj. net profit CAGR of ~12% over FY2016-18E to `409cr.

150

 Considering Dainik Jagran's strong presence in the rapidly growing Hindi

markets, we expect JPL to benefit from an eventual recovery in the Indian

100

economy. Hence, we maintain a Buy rating on the stock with a target price of

`225.

Key Financials

Y/E

Sales

OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

Source: Company, Angel Research

FY2017E

2,355

28.0

353

10.8

21.7

17.1

3.7

9.5

2.6

FY2018E

2,635

28.0

409

12.5

21.7

14.8

3.2

8.3

2.3

Source: Company, Angel Research

April 6, 2017

Top Picks Report | April 2017

Stock Info

TV Today Network

CMP

277

 TTNL enjoys a strong viewership ranking in the Hindi and English news

344

channel categories. The company’s Hindi news channel - Aaj Tak has

Upside

24%

maintained its market leadership position occupying the No.1 rank for several

Sector

Media

consecutive years in terms of viewership. Its English news channel - India

Today too has been continuously gaining viewership; it has now captured the

Market Cap (` cr)

1,654

No. 2 ranking from No. 4 earlier. Its other channels like Dilli Aaj Tak and Tez

Beta

1.3

are also popular among viewers.

52 Week High / Low

360 /250

 Out of the 7 radio stations, TTNL has sold off 4 (Jodhpur, Amritsar, Patiala

and Shimla) for `4cr. The remaining 3 stations are in the process of getting

3 year-Chart

sold off to ENIL but the sale will have to wait until concerns raised by the MIB

400

are resolved. Going forward, we expect them to be sold off and this would

350

prop up the company’s profitability.

300

250

 We expect TTNL to report a net revenue CAGR of ~9% to ~`743cr and net

200

profit CAGR of

~7% to

`108cr over FY2016-18E. We have a Buy

150

recommendation on the stock and target price of `344.

100

Key Financials

Y/E

Sales

OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017E

567

26.7

15.4

17.4

18.0

2.7

8.9

2.5

Source: Company, Angel Research

FY2018E

645

27.0

108

18.1

15.2

15.3

2.3

7.4

2.1

Source: Company, Angel Research

Stock Info

KEI Industries

CMP

195

 Healthy order book indicates strong revenue visibility: KEI’s current order book

207

(OB) stands at `3,233cr (segmental break-up: `2,154cr in EPC, `667cr in

Upside

Cable, `200cr in EHV, `49cr in Substation, rest in EPC L1 business). Its OB

Sector

Cable

grew by ~28% in the last 3 years due to strong order inflows from State

Electricity Boards, Power grid, etc.

Market Cap (` cr)

1,517

 Strengthening distribution network and higher ad Spend to increase B2C

Beta

1.2

business: KEI’s consistent effort to increase its retail business from 30% of

52 Week High / Low

199/ 95

revenue in FY16 to 40-45% of revenue in the next 2-3 years on the back of

strengthening distribution network (currently 926 which is expect to increase

3 year-Chart

`1,500 by FY19) and higher ad spend (increased from `2cr in FY13 to `7cr in

250

FY16 and expected to spend).

200

 Exports to continue its growth momentum: KEI’s export (FY16 - 8% of revenue)

150

is expected to reach a level of ~14-15% in next two years with higher order

execution from current OB of

~`180cr and participation in various

100

international tenders worth `500cr. We expect a strong ~26% growth CAGR

over FY2016-19 in exports. We expect KEI to report net revenue CAGR of

~14% to ~`3,445cr and net profit CAGR of ~26% to `123cr over FY2016-

19E. Hence we have an accumulate rating on the stock.

Key Financials

Source: Company, Angel Research

Y/E

Sales

OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017E

2,682

10.4

11.7

20.1

16.6

3.3

6.9

0.8

FY2018E

3,058

10.0

12.8

18.2

15.2

2.8

6.4

0.7

Source: Company, Angel Research

April 6, 2017

Top Picks Report | April 2017

Stock Info

Mahindra Lifespace

CMP

404

 MLF has 13 projects under implementation across cities. MLF has exhibited

522

fast completion of projects compared to others. Sales cycle in ~65% of

Upside

29.2%

projects is faster than execution cycle, contrary to industry trends. This fast

Sector

Real Estate

execution and sales is optimal, as it helps MLF in revenue recognition,

inventory cycle (better than Oberoi, DLF), cash flows and profitability.

Market Cap (` cr)

1,657

 MLF as of 4QFY2016 is pursuing ~4.0mn sq. ft. of sale of the total ~15.0mn

Beta

0.8

sq. ft. of saleable area. Having sold ~60% of ongoing projects, we expect MLF

52 Week High / Low

496 / 319

to launch ~2.8mn sq.ft. of saleable area in rational way during 4QFY2016-

2QFY2018E, across 6 cities. Maturity at existing projects, new launches give better

3 year-Chart

revenue visibility for medium-term. Further, MLF is sitting on land bank of 11.0mn

600

sq.ft across 4 cities, which allay any concern over long-term revenue growth.

500

 With Real Estate Regulatory Bill closer to reality, MLF should be minimally

400

impacted, given their strong parentage and ethically implemented processes.

300

In the longer-term organized, professionally run, well funded players would

200

enjoy strong trust due to their reliable and fast execution strategies. With

100

improvement in company’s fundamentals, strong earnings growth visibility

and long-term growth outlook, at current valuations of 1.0x FY2017E P/BV,

MLF looks attractive. We maintain Buy on MLF with target price of `522.

Key Financials

Source: Company, Angel Research

Y/E

Sales

OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017E

1,152

22.7

29.9

7.2

13.5

1.0

10.3

2.2

FY2018E

1,300

24.6

138

35.8

8.4

11.3

0.9

7.4

1.8

Source: Company, Angel Research

Stock Info

Navkar

CMP

181

 NCL is one of the largest and one of the three CFS at JNPT with rail

265

connectivity, helping it garner high market share at the port. NCL is in a massive

Upside

46%

expansion mode where it is increasing its capacity by 234% to 1,036,889 TEUs

Sector

Logistics

at JNPT and coming up with an ICD at Vapi (with Logistics Park).

Market Cap (` cr)

2,308

 The ICD with rail link should benefit from first mover advantage in a region

Beta

0.6

that has huge market potential and accounts for ~27% of volumes at JNPT.

52 Week High / Low

224 / 155

The ICD should be able to capture the EXIM volumes from the region through

rail link that till now was being custom cleared at JNPT (Import) or being

transported via road and consolidated at JNPT (Export). South Gujarat

3 year-Chart

250

volumes will now head straight to the Vapi ICD; thus the company can now

cater to bulk commodities and domestic traffic that it had been rejecting owing

200

to capacity constraints at CFS.

150

 We expect NCL to successfully use its rail advantage and scale up its

100

utilizations at both JNPT and Vapi ICD. We have a Buy rating on the stock.

Key Financials

Y/E

Sales

OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017E

369

42.9

6.9

7.1

26.2

1.8

17.3

8.0

Source: Company, Angel Research

FY2018E

561

42.3

164

11.5

10.5

15.7

1.7

12.1

5.3

Source: Company, Angel Research

April 6, 2017

Top Picks Report | April 2017

Stock Info

Alkem Leboratories

CMP

2,207

 Alkem is 5^th largest pharma company is the domestic market. It has presence

2,311

in India, US and a few other countries. The 73% of its revenues come from the

Upside

4.70%

Indian markets while 20% come from the US and rest from the other countries.

Sector

Pharma

The company has leadership position in the anti infective segment in India and

it is ranked as no. 3 in Gastro-Intestinal and Pain/Analgesics segments.

Market Cap (` cr)

26,389

Overall it holds 3.6% market share in the domestic formulations business and

Beta

0.23

7.9% share in overall prescriptions in country.

52 Week High / Low

2,238/ 1,175

 In the domestic market, company operates in acute and chronic segments. It is

a prominent player in acute segment but still an entrant in chronic segment. It

3 year-Chart

has aggressively hired sales force in last three years to increase its sales from

2,500

chronic segment. Alkem has a strong track record of growth in the domestic

2,000

market which is likely to continue. In the US, company is focusing on

monetization of its ANDA pipeline. As of December 2016, company has a

1,500

pipeline of 77 ANDAs of which 35 are approved. Company expects to launch

1,000

~7-8 ANDAs each year and improve its filing rate as well. Overall US

500

revenues are expected to grow at ~28% growth rate from FY17E-FY19E.

 Overall outlook remains strong with 18.2% CAGR in the topline and 23.4%

CAGR in the bottom-line. We have an Accumulate rating on the stock.

Key Financials

Source: Company, Angel Research

Y/E

Sales

OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017E

6,065

18.7

959

80.2

22.5

27.5

6.2

23.0

4.3

FY2018E

7,009

20.0

1,099

92.0

21.6

24.0

5.2

18.6

3.7

Source: Company, Angel Research

April 6, 2017

Top Picks Report | April 2017

Macro watch

Exhibit 3: Quarterly GDP trends

Exhibit 4: IIP trends

(%)

9.0

8.3

7.0

5.7

7.9

6.0

8.0

7.5

7.6

7.4

7.2

5.0

7.1

7.0

6.6

6.7

7.0

4.0

2.7

5.8

3.0

2.2

6.0

1.3

2.0

0.7

1.0

0.3

5.0

4.0

(1.0)

(0.1)

(0.7)

(2.0)

(1.3)

3.0

(3.0)

(1.9)

(2.5)

Source: CSO, Angel Research

Source: MOSPI, Angel Research

Exhibit 5: Monthly CPI inflation trends

Exhibit 6: Manufacturing and services PMI

56.0

Mfg. PMI

Services PMI

(%)

7.0

54.0

6.1

5.8

6.0

5.5

52.0

5.1

4.8

5.0

4.3

4.2

50.0

3.6

3.7

4.0

3.4

3.2

48.0

3.0

46.0

2.0

44.0

1.0

42.0

Source: Market, Angel Research; Note: Level above 50 indicates expansion

Source: MOSPI, Angel Research

Exhibit 7: Exports and imports growth trends

Exhibit 8: Key policy rates

(%)

Exports yoy growth

Imports yoy growth

(%)

Repo rate

Reverse Repo rate

CRR

30.0

7.00

6.50

20.0

6.00

10.0

5.50

0.0

5.00

4.50

(10.0)

4.00

(20.0)

3.50

(30.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

April 6, 2017

Stock Watch | April 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales (` cr)

OPM (%)

EPS (`)

PER (x)

P/BV (x)

RoE (%)

EV/Sales (x)

(`)

Price (`)

(` cr)

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Agri / Agri Chemical

Rallis

Neutral

257

4,992

1,937

2,164

13.3

14.3

9.0

11.0

28.5

23.3

5.0

4.3

18.4

19.8

2.6

2.3

United Phosphorus

Neutral

732

37,104

15,176

17,604

18.5

37.4

44.6

19.6

16.4

3.8

3.2

21.4

21.2

2.6

2.2

Auto & Auto Ancillary

Amara Raja Batteries

Accumulate

896

1,009

15,307

5,305

6,100

16.0

16.3

28.4

34.0

31.6

26.4

6.1

5.1

19.3

2.9

2.5

Apollo Tyres

Accumulate

212

235

10,784

12,877

14,504

14.3

13.9

21.4

23.0

9.9

9.2

1.5

1.3

16.4

15.2

1.0

0.9

Ashok Leyland

Buy

111

24,176

20,021

21,915

11.6

11.9

4.5

5.3

18.9

16.0

3.8

3.4

20.6

21.5

1.1

1.0

Bajaj Auto

Neutral

2,761

79,886

25,093

27,891

19.5

19.2

143.9

162.5

19.2

17.0

5.4

4.6

30.3

29.3

2.9

2.5

Bharat Forge

Neutral

1,074

24,993

7,726

8,713

20.5

21.2

35.3

42.7

30.4

25.1

5.6

5.1

18.9

20.1

3.3

2.9

Ceat

Accumulate

1,337

1,450

5,410

7,524

8,624

13.0

12.7

131.1

144.3

10.2

9.3

1.9

1.6

19.8

18.6

0.8

0.7

Eicher Motors

Neutral

25,765

70,108

16,583

20,447

17.5

18.0

598.0

745.2

43.1

34.6

14.7

11.2

41.2

38.3

4.1

3.2

Exide Industries

Neutral

228

19,410

7,439

8,307

15.0

8.1

9.3

28.2

24.6

3.9

3.5

14.3

16.7

2.2

2.0

Gabriel India

Neutral

125

1,800

1,544

1,715

9.0

9.3

5.4

6.3

23.2

19.9

4.4

3.9

18.9

19.5

1.1

1.0

Hero Motocorp

Accumulate

3,196

3,446

63,830

28,083

30,096

15.3

15.7

171.8

187.0

18.6

17.1

6.5

5.5

30.1

27.9

2.1

1.9

Indag Rubber

Neutral

212

556

286

326

19.8

16.8

11.7

13.3

18.1

15.9

3.1

2.9

17.8

17.1

1.6

1.4

Jamna Auto Industries

Neutral

230

1,835

1,486

1,620

9.8

9.9

15.0

17.2

15.4

13.4

3.4

2.8

21.8

21.3

1.3

1.2

JK Tyres

Neutral

133

3,005

7,455

8,056

15.0

21.8

24.5

6.1

5.4

1.3

1.0

22.8

21.3

0.5

0.4

L G Balakrishnan & Bros Neutral

633

994

1,302

1,432

11.6

11.9

43.7

53.0

14.5

11.9

2.0

1.9

13.8

14.2

0.9

0.8

Mahindra and Mahindra Neutral

1,290

80,121

46,534

53,077

11.6

11.7

67.3

78.1

19.2

16.5

3.1

2.7

15.4

15.8

1.7

1.4

Maruti

Neutral

6,339

191,501

67,822

83,288

16.0

16.4

253.8

312.4

25.0

20.3

5.7

4.6

23.0

22.9

2.5

1.9

Minda Industries

Neutral

444

3,522

2,728

3,042

9.0

9.1

68.2

86.2

6.5

5.2

1.5

1.2

23.8

24.3

1.3

1.2

Motherson Sumi

Neutral

382

53,617

45,896

53,687

7.8

8.2

13.0

16.1

29.3

23.7

9.4

7.5

34.7

35.4

32.9

1.0

Rane Brake Lining

Neutral

1,031

816

511

562

11.3

11.5

28.1

30.9

36.7

33.3

5.6

5.1

15.3

15.0

1.7

1.6

Setco Automotive

Neutral

518

741

837

13.0

15.2

17.0

2.5

2.3

0.4

15.8

16.3

1.1

1.0

Subros

Neutral

225

1,352

1,488

1,681

11.7

11.9

6.4

7.2

35.2

31.4

3.7

3.4

10.8

11.4

1.1

1.0

Swaraj Engines

Neutral

1,435

1,782

660

810

15.2

16.4

54.5

72.8

26.3

19.7

8.2

7.4

31.5

39.2

2.5

2.0

Tata Motors

Neutral

474

136,730

300,209

338,549

8.9

8.4

42.7

54.2

11.1

8.7

1.8

1.5

15.6

17.2

0.6

0.5

TVS Motor

Neutral

450

21,400

13,390

15,948

6.9

7.1

12.8

16.5

35.3

27.2

8.8

7.0

26.3

27.2

1.6

1.3

Banking

Axis Bank

Accumulate

507

580

121,266

46,932

53,575

3.5

3.4

32.3

44.6

15.7

11.3

2.0

1.75

13.6

16.5

Bank of Baroda

Neutral

174

40,173

19,980

23,178

1.8

11.5

17.3

15.2

10.1

1.7

1.4

8.3

10.1

Canara Bank

Neutral

311

16,865

15,225

16,836

1.8

14.5

28.0

21.4

11.1

1.5

1.2

5.8

8.5

Can Fin Homes

Neutral

2,333

6,210

420

526

3.5

86.5

107.8

27.0

21.6

5.8

4.8

23.6

24.1

Cholamandalam Inv.

Buy

979

1,230

15,298

2,012

2,317

6.3

42.7

53.6

22.9

18.3

3.6

3.1

16.9

18.3

Dewan Housing Finance Buy

385

460

12,050

2,225

2,688

2.9

29.7

34.6

13.0

11.1

2.1

1.4

16.1

14.8

Equitas Holdings

Buy

170

235

5,738

939

1,281

11.7

11.5

5.8

8.2

29.3

20.7

2.5

2.2

10.9

11.5

Federal Bank

Neutral

15,671

8,259

8,995

3.0

4.3

5.6

21.2

16.2

1.8

1.7

8.5

10.1

HDFC

Neutral

1,490

236,664

11,475

13,450

3.4

45.3

52.5

32.9

28.4

6.3

5.6

20.2

20.5

HDFC Bank

Neutral

1,433

367,315

46,097

55,433

4.5

58.4

68.0

24.5

21.1

4.3

3.60

18.8

18.6

ICICI Bank

Accumulate

285

315

165,908

42,800

44,686

3.1

3.3

18.0

21.9

15.8

13.0

2.1

2.0

11.1

12.3

Karur Vysya Bank

Buy

118

140

6,088

5,640

6,030

3.3

3.2

8.9

10.0

13.3

11.8

1.4

1.3

11.2

11.4

April 6, 2017

Stock Watch | April 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales (` cr)

OPM (%)

EPS (`)

PER (x)

P/BV (x)

RoE (%)

EV/Sales (x)

(`)

Price (`)

(` cr)

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Lakshmi Vilas Bank

Neutral

172

3,290

3,339

3,799

2.7

2.8

11.0

14.0

15.6

12.3

1.6

1.5

11.2

12.7

LIC Housing Finance

Neutral

624

31,501

3,712

4,293

2.6

2.5

39.0

46.0

16.0

13.6

3.0

2.6

19.9

20.1

Punjab Natl.Bank

Neutral

151

32,164

23,532

23,595

2.3

2.4

6.8

12.6

22.2

12.0

3.4

2.4

3.3

6.5

RBL Bank

Neutral

534

19,744

1,783

2,309

2.6

12.7

16.4

42.0

32.6

4.6

4.1

12.8

13.3

Repco Home Finance

Buy

720

825

4,503

388

457

4.5

4.2

30.0

38.0

24.0

18.9

4.0

3.4

18.0

19.2

South Ind.Bank

Neutral

3,885

6,435

7,578

2.5

2.7

3.1

8.0

7.0

1.0

0.9

10.1

11.2

St Bk of India

Neutral

297

236,574

88,650

98,335

2.6

13.5

18.8

22.0

15.8

2.1

1.8

7.0

8.5

Union Bank

Neutral

158

10,855

13,450

14,925

2.3

25.5

34.5

6.2

4.6

0.9

0.8

7.5

10.2

Yes Bank

Neutral

1,567

71,527

8,978

11,281

3.3

3.4

74.0

90.0

21.2

17.4

4.0

3.4

17.0

17.2

Capital Goods

ACE

Neutral

639

709

814

4.1

4.6

1.4

2.1

46.1

30.7

1.9

1.8

4.4

6.0

1.1

0.9

BEML

Neutral

1,363

5,675

3,451

4,055

6.3

9.2

31.4

57.9

43.4

23.5

2.6

2.4

6.3

10.9

1.8

1.5

BGR Energy

Neutral

150

1,082

16,567

33,848

6.0

5.6

7.8

5.9

19.2

25.4

1.1

4.7

4.2

0.2

0.1

Bharat Electronics

Neutral

161

36,040

8,137

9,169

16.8

17.2

58.7

62.5

2.7

2.6

0.4

44.6

46.3

3.4

3.1

BHEL

Neutral

171

41,903

28,797

34,742

2.8

2.3

6.9

74.4

24.8

1.3

1.2

1.3

4.8

1.1

0.8

Blue Star

Accumulate

695

760

6,646

4,283

5,077

5.9

7.3

14.9

22.1

46.7

31.4

9.1

7.6

20.4

26.4

1.6

1.3

CG Power and Ind. Sol.

Neutral

5,048

5,777

6,120

5.9

7.0

3.3

4.5

24.4

17.9

1.1

1.0

4.4

5.9

0.8

0.7

Greaves Cotton

Neutral

172

4,210

1,755

1,881

16.8

16.9

7.8

8.5

22.1

20.3

4.4

4.1

20.6

20.9

2.1

1.9

Inox Wind

Neutral

183

4,067

5,605

6,267

15.7

16.4

24.8

30.0

7.4

6.1

2.1

1.5

25.9

24.4

0.8

0.6

KEC International

Neutral

219

5,639

9,294

10,186

7.9

8.1

9.9

11.9

22.2

18.4

3.2

2.8

15.6

16.3

0.8

KEI Industries

Accumulate

195

207

1,517

2,682

3,058

10.4

10.0

11.7

12.8

16.6

15.2

3.3

2.8

20.1

18.2

0.8

0.7

Thermax

Neutral

987

11,764

5,421

5,940

7.3

25.7

30.2

38.4

32.7

4.6

4.2

12.2

13.1

2.0

1.9

VATech Wabag

Neutral

698

3,808

3,136

3,845

8.9

9.1

26.0

35.9

26.8

19.4

3.4

2.9

13.4

15.9

1.1

0.9

Voltas

Neutral

415

13,747

6,511

7,514

7.9

8.7

12.9

16.3

32.2

25.5

5.8

5.1

16.7

18.5

1.9

1.6

Cement

ACC

Neutral

1,467

27,540

11,225

13,172

13.2

16.9

44.5

75.5

33.0

19.4

3.1

2.9

11.2

14.2

2.5

2.1

Ambuja Cements

Neutral

239

47,387

9,350

10,979

18.2

22.5

5.8

9.5

41.1

25.1

3.5

3.1

10.2

12.5

5.1

4.3

India Cements

Neutral

163

5,004

4,364

4,997

18.5

19.2

7.9

11.3

20.6

14.4

1.5

1.4

8.0

8.5

1.9

1.7

JK Cement

Neutral

935

6,538

4,398

5,173

15.5

17.5

31.2

55.5

30.0

16.8

3.6

3.1

12.0

15.5

2.0

1.7

J K Lakshmi Cement

Neutral

458

5,387

2,913

3,412

14.5

19.5

7.5

22.5

61.0

20.3

3.8

3.2

12.5

18.0

2.4

2.0

Orient Cement

Neutral

146

2,985

2,114

2,558

18.5

20.5

8.1

11.3

18.0

12.9

2.6

2.2

9.0

14.0

2.0

1.6

UltraTech Cement

Neutral

4,071

111,737

25,768

30,385

21.0

23.5

111.0

160.0

36.7

25.4

4.7

4.1

13.5

15.8

4.4

3.7

Construction

Engineers India

Neutral

151

10,149

1,725

1,935

16.0

19.1

11.4

13.9

13.2

10.8

1.8

13.4

15.3

4.8

4.3

Gujarat Pipavav Port

Neutral

172

8,298

705

788

52.2

51.7

5.0

5.6

34.3

30.7

3.4

3.0

11.2

11.4

9.7

ITNL

Neutral

113

3,712

8,946

10,017

31.0

31.6

8.1

9.1

13.9

12.4

0.5

4.2

5.0

3.7

3.5

KNR Constructions

Neutral

202

2,836

1,385

1,673

14.7

14.0

41.2

48.5

4.9

4.2

0.9

0.8

14.9

15.2

2.1

1.8

Larsen & Toubro

Neutral

1,697

158,310

111,017

124,908

11.0

61.1

66.7

27.8

25.4

3.3

3.1

13.1

12.9

2.5

2.3

MEP Infra

Neutral

962

1,877

1,943

30.6

29.8

3.0

4.2

19.7

14.1

9.5

6.4

0.6

1.9

1.7

Nagarjuna Const.

Neutral

4,845

8,842

9,775

9.1

8.8

5.3

6.4

16.4

13.6

1.3

1.2

8.2

9.1

0.7

0.6

April 6, 2017

Stock Watch | April 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales (` cr)

OPM (%)

EPS (`)

PER (x)

P/BV (x)

RoE (%)

EV/Sales (x)

(`)

Price (`)

(` cr)

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

NBCC

Neutral

172

15,471

7,428

9,549

7.9

8.6

8.2

11.0

21.0

15.6

1.0

0.8

28.2

28.7

1.8

1.3

PNC Infratech

Accumulate

128

143

3,275

2,350

2,904

13.1

13.2

9.0

8.8

14.2

14.5

0.5

15.9

13.9

1.5

1.2

Power Mech Projects

Neutral

550

809

1,801

2,219

12.7

14.6

72.1

113.9

7.6

4.8

1.4

1.2

16.8

11.9

0.4

0.3

Sadbhav Engineering

Neutral

309

5,295

3,598

4,140

10.3

10.6

9.0

11.9

34.3

25.9

3.6

3.1

9.9

11.9

1.8

1.5

Simplex Infra

Neutral

318

1,575

6,829

7,954

10.5

31.4

37.4

10.1

8.5

1.1

1.0

9.9

13.4

0.7

0.6

SIPL

Neutral

3,496

1,036

1,252

65.5

66.2

(8.4)

(5.6)

3.7

4.2

(22.8)

(15.9)

11.6

9.6

FMCG

Akzo Nobel India

Neutral

1,931

9,260

2,955

3,309

13.3

13.7

57.2

69.3

33.8

27.9

11.0

9.3

32.7

33.3

2.9

2.6

Asian Paints

Neutral

1,080

103,637

17,128

18,978

16.8

16.4

19.1

20.7

56.6

52.2

19.7

18.6

34.8

35.5

6.0

5.4

Britannia

Accumulate

3,372

3,626

40,458

9,594

11,011

14.6

14.9

80.3

94.0

42.0

35.9

17.3

13.3

41.2

4.1

3.5

Colgate

Neutral

1,001

27,219

4,605

5,149

23.4

23.8

26.9

42.0

37.2

23.3

18.2

64.8

66.8

5.8

5.2

Dabur India

Accumulate

284

304

49,974

8,315

9,405

19.8

20.7

8.1

9.2

35.0

30.8

9.7

8.1

31.6

31.0

5.7

5.0

GlaxoSmith Con*

Neutral

5,181

21,788

4,350

4,823

21.2

21.4

179.2

196.5

28.9

26.4

7.7

6.5

27.1

26.8

4.4

3.9

Godrej Consumer

Neutral

1,701

57,948

10,235

11,428

18.4

18.6

41.1

44.2

41.4

38.5

9.2

7.7

24.9

24.8

5.7

5.1

HUL

Neutral

935

202,432

35,252

38,495

17.8

20.6

22.4

45.3

41.8

43.3

37.1

95.6

88.9

5.6

5.1

ITC

Neutral

279

338,851

40,059

44,439

38.3

39.2

9.0

10.1

31.1

27.5

8.7

7.6

27.8

27.5

8.0

7.2

Marico

Neutral

298

38,460

6,430

7,349

18.8

19.5

6.4

7.7

46.6

38.7

14.1

11.8

33.2

32.5

5.8

5.0

Nestle*

Neutral

6,622

63,847

10,073

11,807

20.7

21.5

124.8

154.2

53.1

42.9

21.8

19.6

34.8

36.7

6.1

5.2

Tata Global

Neutral

153

9,634

8,675

9,088

9.8

7.4

8.2

20.6

18.6

1.6

1.5

7.9

8.1

1.0

Procter & Gamble

Neutral

7,415

24,068

2,939

3,342

23.2

23.0

146.2

163.7

50.7

45.3

12.8

10.7

25.3

23.5

7.7

6.7

HCL Tech^

Buy

853

1,000

120,377

49,242

57,168

20.5

55.7

64.1

15.3

13.3

3.1

2.4

20.3

17.9

2.3

1.9

Infosys

Buy

995

1,249

228,638

68,350

77,326

27.0

62.5

69.4

15.9

14.3

3.4

3.1

21.3

21.6

2.8

2.4

TCS

Accumulate

2,403

2,700

473,464

119,025

133,308

27.6

131.2

145.5

18.3

16.5

5.9

5.5

32.4

33.1

3.8

3.3

Tech Mahindra

Buy

447

600

43,503

29,673

32,937

15.5

17.0

32.8

39.9

13.6

11.2

2.7

2.3

19.6

20.7

1.2

1.0

Wipro

Accumulate

511

583

124,109

55,440

60,430

18.1

36.1

38.9

14.1

13.1

2.5

2.3

19.0

17.6

2.0

1.7

Media

D B Corp

Neutral

391

7,184

2,297

2,590

27.4

28.2

21.0

23.4

18.6

16.7

4.3

3.8

23.7

23.1

2.9

2.5

Hindustan Media Ven.

Neutral

288

2,115

1,016

1,138

24.3

25.2

27.3

30.1

10.6

9.6

2.0

1.8

16.2

15.8

1.4

1.2

HT Media

Neutral

1,985

2,693

2,991

12.6

12.9

7.9

9.0

10.8

9.5

0.9

0.8

7.8

8.3

0.3

0.2

Jagran Prakashan

Buy

185

225

6,033

2,355

2,635

28.0

10.8

12.5

17.1

14.8

3.7

3.2

21.7

2.6

2.3

Sun TV Network

Neutral

796

31,365

2,850

3,265

70.1

71.0

26.2

30.4

26.2

7.8

6.9

24.3

25.6

10.6

9.1

TV Today Network

Buy

277

344

1,654

567

645

26.7

27.0

15.4

18.1

18.0

15.3

2.7

2.3

14.9

15.2

2.5

2.1

Metal

Coal India

Neutral

290

180,015

84,638

94,297

21.4

22.3

24.5

27.1

11.8

10.7

4.9

4.7

42.6

46.0

1.6

1.5

Hind. Zinc

Neutral

291

123,126

14,252

18,465

55.9

48.3

15.8

21.5

18.4

13.6

3.0

2.6

17.0

20.7

8.6

6.7

Hindalco

Neutral

198

44,461

107,899

112,095

7.4

8.2

9.2

13.0

21.5

15.2

1.0

4.8

6.6

0.9

JSW Steel

Neutral

195

47,220

53,201

58,779

16.1

16.2

130.6

153.7

1.5

1.3

0.2

14.0

14.4

1.6

1.4

NMDC

Neutral

136

43,045

6,643

7,284

44.4

47.7

7.1

7.7

19.2

17.7

1.7

1.6

8.8

9.2

4.2

3.8

SAIL

Neutral

27,031

47,528

53,738

(0.7)

2.1

(1.9)

2.6

25.2

0.7

(1.6)

3.9

1.4

1.3

Tata Steel

Neutral

493

47,915

121,374

121,856

7.2

8.4

18.6

34.3

26.5

14.4

1.7

1.5

6.1

10.1

1.0

Vedanta

Neutral

273

80,832

71,744

81,944

19.2

21.7

13.4

20.1

20.3

13.6

1.7

1.6

8.4

11.3

1.5

1.2

April 6, 2017

Stock Watch | April 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales (` cr)

OPM (%)

EPS (`)

PER (x)

P/BV (x)

RoE (%)

EV/Sales (x)

(`)

Price (`)

(` cr)

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Oil & Gas

Cairn India

Neutral

303

56,858

9,127

10,632

4.3

20.6

8.8

11.7

34.4

25.9

1.1

3.3

4.2

7.7

6.4

GAIL

Neutral

383

64,692

56,220

65,198

9.3

10.1

27.1

33.3

14.1

11.5

1.3

1.2

9.3

10.7

1.3

1.1

Indian Oil Corp

Neutral

381

185,180

373,359

428,656

5.9

5.5

54.0

59.3

7.1

6.4

1.1

1.0

16.0

15.6

0.6

ONGC

Neutral

186

239,019

137,222

152,563

15.0

21.8

19.5

24.1

9.6

7.7

0.8

8.5

10.1

2.0

1.8

Reliance Industries

Neutral

1,415

460,023

301,963

358,039

12.1

12.6

87.7

101.7

16.1

13.9

1.7

1.5

10.7

11.3

2.0

1.7

Pharmaceuticals

Alembic Pharma

Accumulate

625

689

11,786

3,483

4,244

20.2

21.4

24.3

33.6

25.7

18.6

5.9

4.7

25.5

25.3

3.3

2.6

Alkem Laboratories Ltd

Accumulate

2,208

2,311

26,399

6,065

7,009

18.7

20.0

80.2

92.0

27.5

24.0

6.2

5.2

22.5

21.6

4.3

3.7

Aurobindo Pharma

Buy

678

877

39,710

15,720

18,078

23.7

41.4

47.3

16.4

14.3

4.3

3.3

29.6

26.1

2.7

2.4

Aventis*

Neutral

4,755

10,951

2,277

2,597

16.6

17.4

128.9

157.0

36.9

30.3

6.3

4.8

21.6

26.4

4.6

3.8

Cadila Healthcare

Neutral

449

45,925

10,429

12,318

17.7

21.6

13.1

19.2

34.2

23.4

7.2

5.7

22.8

27.1

4.4

3.7

Cipla

Sell

593

465

47,679

15,378

18,089

15.7

16.8

19.3

24.5

30.7

24.2

3.6

3.2

12.3

13.9

3.3

2.7

Dr Reddy's

Neutral

2,736

45,331

16,043

18,119

18.0

23.0

78.6

130.9

34.8

20.9

3.4

3.0

10.1

15.2

2.6

2.5

Dishman Pharma

Sell

333

143

5,378

1,718

1,890

22.7

22.8

9.5

11.3

35.1

29.5

3.4

3.1

10.1

10.9

3.6

3.2

GSK Pharma*

Neutral

2,738

23,195

2,800

3,290

10.2

20.6

32.2

60.3

85.0

45.4

15.7

15.6

17.2

34.5

8.1

6.9

Indoco Remedies

Neutral

243

2,242

1,112

1,289

16.2

18.2

11.6

16.0

21.0

15.2

3.4

2.8

17.0

20.1

2.1

1.8

Ipca labs

Neutral

647

8,165

3,258

3,747

12.8

15.3

12.1

19.2

53.5

33.7

3.3

3.1

6.4

9.5

2.6

2.3

Lupin

Buy

1,453

1,809

65,610

15,912

18,644

26.4

26.7

58.1

69.3

25.0

21.0

4.9

4.0

21.4

20.9

4.2

3.4

Sun Pharma

Buy

691

847

165,715

31,129

35,258

32.0

32.9

30.2

35.3

22.9

19.6

3.7

3.1

20.0

20.1

4.9

4.1

Power

NTPC

Neutral

166

137,205

86,605

95,545

17.5

20.8

11.8

13.4

14.1

12.4

1.4

1.3

10.5

11.1

2.9

Power Grid

Accumulate

195

223

101,885

25,315

29,193

88.2

88.7

14.2

17.2

13.8

11.3

2.1

1.8

15.2

16.1

8.7

7.8

Tata Power

Neutral

23,856

36,916

39,557

17.4

27.1

5.1

6.3

17.3

14.0

1.5

1.4

9.0

10.3

1.7

1.5

Real Estate

MLIFE

Buy

404

522

1,657

1,152

1,300

22.7

24.6

29.9

35.8

13.5

11.3

1.0

0.9

7.6

8.6

2.2

1.8

Prestige Estate

Neutral

224

8,383

4,707

5,105

25.2

26.0

10.3

13.0

21.7

17.2

1.7

1.6

10.3

10.2

2.9

2.6

Telecom

Bharti Airtel

Neutral

345

137,750

105,086

114,808

34.5

34.7

12.2

16.4

28.2

21.0

1.9

1.8

6.8

8.4

2.2

1.9

Idea Cellular

Neutral

31,601

40,133

43,731

37.2

37.1

6.4

6.5

13.7

13.5

1.1

8.2

7.6

1.8

1.5

Others

Abbott India

Neutral

4,771

10,138

3,153

3,583

14.1

14.4

152.2

182.7

31.3

26.1

153.9

131.4

25.6

26.1

2.9

2.5

Asian Granito

Accumulate

370

390

1,112

1,060

1,169

12.2

12.5

12.7

15.9

29.2

23.3

2.8

2.5

9.5

10.6

1.3

1.2

Bajaj Electricals

Accumulate

348

395

3,525

4,801

5,351

5.7

6.2

10.4

13.7

33.4

25.4

4.1

3.7

12.4

14.5

0.7

Banco Products (India)

Neutral

227

1,626

1,353

1,471

12.3

12.4

14.5

16.3

15.7

13.9

21.7

19.5

14.5

14.6

1.1

1.0

Coffee Day Enterprises

Neutral

233

4,799

2,964

3,260

20.5

21.2

4.7

8.0

29.1

2.7

2.5

5.5

8.5

2.0

1.8

Competent Automobiles Neutral

190

117

1,137

1,256

3.1

2.7

28.0

23.6

6.8

8.1

36.5

33.0

14.3

11.5

0.1

Elecon Engineering

Neutral

648

1,482

1,660

13.7

14.5

3.9

5.8

14.8

10.0

3.5

3.2

7.8

10.9

0.8

0.7

Finolex Cables

Neutral

546

8,350

2,883

3,115

12.0

12.1

14.2

18.6

38.4

29.4

20.4

17.9

15.8

14.6

2.6

2.3

April 6, 2017

Stock Watch | April 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales (` cr)

OPM (%)

EPS (`)

PER (x)

P/BV (x)

RoE (%)

EV/Sales (x)

(`)

Price (`)

(` cr)

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Garware Wall Ropes

Neutral

730

1,597

863

928

15.1

15.2

36.4

39.4

20.0

18.5

3.6

3.1

17.5

15.9

1.8

1.6

Goodyear India*

Neutral

876

2,021

1,598

1,704

10.4

10.2

49.4

52.6

17.7

16.7

81.9

71.8

18.2

17.0

0.9

0.8

Hitachi

Neutral

1,820

4,947

2,081

2,433

8.8

8.9

33.4

39.9

54.5

45.6

43.9

36.6

22.1

21.4

2.4

2.0

HSIL

Neutral

349

2,524

2,384

2,515

15.8

16.3

15.3

19.4

22.8

18.0

22.7

19.5

7.8

9.3

1.2

1.1

Interglobe Aviation

Neutral

1,044

37,746

21,122

26,005

14.5

27.6

110.7

132.1

9.4

7.9

56.4

40.3

168.5

201.1

1.8

1.4

Jyothy Laboratories

Neutral

342

6,204

1,440

2,052

11.5

13.0

8.5

10.0

40.2

34.2

9.7

9.0

18.6

19.3

4.6

3.2

Kirloskar Engines India

Neutral

390

5,633

2,554

2,800

9.9

10.0

10.5

12.1

37.1

32.2

15.5

14.6

10.7

11.7

1.8

1.6

Linc Pen & Plastics

Neutral

293

433

382

420

9.3

9.5

13.5

15.7

21.7

18.6

3.7

3.2

17.1

17.3

1.2

1.1

M M Forgings

Neutral

555

670

546

608

20.4

20.7

41.3

48.7

13.5

11.4

76.0

67.3

16.6

17.0

1.1

1.0

Manpasand Bever.

Neutral

714

4,085

836

1,087

19.6

19.4

16.9

23.8

42.3

30.0

5.1

4.4

12.0

14.8

4.6

3.5

Mirza International

Buy

107

1,072

963

1,069

17.2

18.0

6.1

7.5

14.5

11.9

2.2

1.9

15.0

15.7

1.3

1.2

MT Educare

Neutral

345

366

417

17.7

18.2

9.4

10.8

9.2

8.0

2.1

1.8

22.2

22.3

0.8

0.7

Narayana Hrudaya

Neutral

321

6,569

1,873

2,166

11.5

11.7

2.6

4.0

121.5

81.1

7.5

6.7

6.1

8.3

3.6

3.1

Navin Fluorine

Accumulate

3,182

3,650

3,116

789

945

21.1

22.4

120.1

143.4

26.5

22.2

4.3

3.7

17.8

18.5

3.9

3.2

Navkar Corporation

Buy

181

265

2,581

369

561

42.9

42.3

6.9

11.5

26.2

15.7

1.8

1.6

7.3

10.5

8.0

5.3

Navneet Education

Neutral

168

3,913

1,062

1,147

24.0

6.1

6.6

27.5

25.3

5.7

5.0

20.5

19.8

3.8

3.5

Nilkamal

Neutral

2,085

3,112

1,995

2,165

10.7

10.4

69.8

80.6

29.9

25.9

119.2

103.5

16.6

16.5

1.6

1.4

Page Industries

Neutral

14,596

16,280

2,450

3,124

20.1

17.6

299.0

310.0

48.8

47.1

325.1

248.2

47.1

87.5

6.7

5.3

Parag Milk Foods

Neutral

242

2,039

1,919

2,231

9.3

9.6

9.4

12.9

25.7

18.7

4.0

3.3

15.5

17.5

1.2

1.0

Quick Heal

Neutral

251

1,756

408

495

27.3

27.0

7.7

8.8

32.4

28.5

3.0

9.3

10.6

3.4

2.9

Radico Khaitan

Accumulate

130

147

1,726

1,667

1,824

13.0

13.2

6.6

8.2

19.5

15.8

1.8

1.6

9.0

10.2

1.4

1.3

Relaxo Footwears

Neutral

497

5,965

2,085

2,469

9.2

8.2

7.6

7.9

65.7

62.5

25.5

21.7

17.9

18.8

2.9

2.5

S H Kelkar & Co.

Neutral

298

4,304

1,036

1,160

15.1

15.0

6.1

7.2

48.7

41.5

5.2

4.8

10.7

11.5

4.0

3.6

Siyaram Silk Mills

Accumulate

1,700

1,872

1,594

1,652

1,857

11.6

11.7

92.4

110.1

18.4

15.4

2.7

2.3

14.7

15.2

1.2

1.0

Styrolution ABS India*

Neutral

713

1,253

1,440

1,537

9.2

9.0

40.6

42.6

17.5

16.7

44.8

40.7

12.3

11.6

0.8

0.7

Surya Roshni

Neutral

213

932

3,342

3,625

7.8

7.5

17.3

19.8

12.3

10.8

23.4

18.8

10.5

10.8

0.5

Team Lease Serv.

Neutral

1,004

1,717

3,229

4,001

1.5

1.8

22.8

32.8

44.1

30.6

4.7

4.1

10.7

13.4

0.4

0.3

The Byke Hospitality

Neutral

184

737

287

384

20.5

7.6

10.7

24.2

17.2

5.1

4.1

20.7

23.5

2.6

1.9

Transport Corp. of India

Neutral

239

1,827

2,671

2,911

8.5

8.8

13.9

15.7

17.2

15.2

2.4

2.1

13.7

13.8

0.8

0.7

TVS Srichakra

Neutral

3,522

2,697

2,304

2,614

13.7

13.8

231.1

266.6

15.2

13.2

395.7

311.6

33.9

29.3

1.2

1.0

UFO Moviez

Neutral

443

1,222

619

685

33.2

33.4

30.0

34.9

14.8

12.7

2.0

1.8

13.8

13.9

1.7

1.3

VIP Industries

Neutral

215

3,045

1,270

1,450

10.4

5.6

6.5

38.5

33.1

8.0

7.0

20.7

21.1

2.4

2.1

Visaka Industries

Neutral

324

514

1,051

1,138

10.3

10.4

21.0

23.1

15.4

14.0

41.5

38.9

9.0

9.2

0.7

VRL Logistics

Neutral

343

3,126

1,902

2,119

16.7

16.6

14.6

16.8

23.5

20.4

5.2

4.5

21.9

22.2

1.8

1.5

Source: Company, Angel Research, Note: *December year end; ^#September year end;

^&October year end; ^June year end; Price as of April 5, 2017

April 6, 2017

Top Picks Report | April 2017

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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Ratings (Based on expected returns

Buy (> 15%)

Accumulate (5% to 15%)

Neutral (-5 to 5%)

over 12 months investment period):

Reduce (-5% to -15%)

Sell (< -15)