Angel Top Picks - August 2017

While the markets have seen 21% returns in CY17, returns in dollar terms are even

Top Picks

higher at 29%. We belive that current econmic enviornment is positive for domestic

Company

CMP (`)

TP (`)

and foreign inflows. The big picture is that global economy is in healthy shape and

Banking/NBFC

in anticipation of faster growth, global markets have seen re-rating.

Dewan Housing

449

550

Karur Vysa Bank

137

160

Current economic environment positive for inflows: As expected by the markets,

Consumption

RBI has cut the repo rates by 25bps in the August monetary policy. With the current

Asian Granito

408

493

inflation trajectory and normal rainfall for 2^nd consecutive year, we believe there is

Blue Star

683

760

further scope for RBI to cut the rates; however it also depends upon a few factors

Siyaram Silk Mills

2,024

2,500

out of RBI’s reach. We have already seen saving rates being slashed by 25bps

Media/Automobiles

proactively and due to continued pressure on deposit rates, incremental household

Maruti Suzuki

7,756

8,544

savings will flow in the equity markets through Mutual funds.

Music Broadcast

350

434

FII’s have continued to pour money: After the record inflow of `31,000cr in March-

TV Today

235

344

2017, FII have continued to remain positive on our economy with sustained

Real Estate/Infra/Logistics/Power

inflows. While Indian markets are up 21% in the current calendar year, in dollar

KEI Industries

225

258

terms the returns are even better at 29%. The rupee and other major global

Mahindra Lifespace

421

522

currencies have continued to strengthen against USD which will help in bringing

Navkar Corp.

188

265

more inflows in the emerging markets. We believe that liquidity is likely to remain

Pharma

plenty going ahead in the markets. The current quarterly results have also been

Alkem Lab.

1,840

2,161

decent and not showing severe impact of the GST which is also likely to be taken

Source: Angel Research;

positively by the investors. Also with GDP growth of >7%, FIIs would be willing to

Note: CMP as of August 08, 2017

invest more in India which also makes India’s case strong to get the inflows.

Improving tax collection to maintain fiscal prudence: The government has set a

fiscal deficit target of 3.2% for FY18E which is achievable given the strong tax

collection in the current fiscal. The advance tax collection (personal) grew by 42%

yoy in August-17 while overall income tax (personal and corporate) grew by 25%

yoy. The 25% yoy increase in the tax payers hints at widening of tax base which is

a long term positive for our economy as this can boost the public capex.

Valuations high but not expensive - Indian markets are currently valued 23.0x of

its FY17 earnings and 18.3x of its 1 year forward earnings. While this valuation is

at 7% premium to its 10 year average of 17.2x, it should be noted that major

global markets have also seen re-rating. One must look at the big picture globally

- the global economy looks in a healthy shape with US economy in nearly full

employment stage and GDP growth at ~2%, European economy is also recovering

from the crisis period and the same is reflected in 1QCY17 and 2QCY17 GDP

growth of 0.5% and 0.6% respectively. While growth in China has stabilized at the

rate of above 6%; the manufacturing and service sectors across multiple countries

are showing expansion. Overall on the hope of the faster growth, global markets

have seen re-rating. Indian economy with stable government, continued reforms

and favorable demographics, is likely to see faster growth going ahead and hence

valuation at the current rate looks justified to us.

We continue to remain positive on consumption (Maruti Suzuki, Asian Granito Blue

Star) and housing theme (Mahindra Lifespace and Dewan Housing). We also

remain positive on Karur Vysa Bank, Alkem laboratories, Navkar Corp, KEI

Industries and Siyaram Silk Mills. We add Music Broadcast in the portfolio on the

back of its attractive business model.

Please refer to important disclosures at the end of this report

Top Picks Report | August 2017

Stock Info

Dewan Housing

CMP

449

 Loan growth to remain strong going ahead: Backed by healthy capital

550

adequacy and increasing demand for home loans DHFL’s loan book is

Upside

22.5%

expected to report 23% loan growth over next two three years.

Sector

Financials

 Strong Capital adequacy lends visibility for growth: DHFL sold 50% stake held

Market Cap (` cr)

14,072

by it in DFHFL Pramerica Life Insurance Co Ltd which added `1,969 cr to its

Beta

1.9

net worth and increases its CAR by 400 bps, to 19.3% which should fuel

52 Week High / Low

478 / 214

growth for next 2-3 years.

 Asset quality has been strong: Strong NIM on the back of lower cost of funds

3 year-Chart

and lower credit cost will ensure healthy return ratios for the company. Despite

600

strong growth the company has maintained stable asset quality and we expect

the trend to continue.

500

 Outlook: We expect the company’s loan growth to remain 23% over next two

400

years and earnings growth is likely to be more than 28%.The stock currently

300

trades at 1.5x FY2018E ABV. We maintain Buy on the stock, with a target price

200

of `550.

100

Key Financials

Y/E

Op. Inc NIM

PAT

EPS

ABV ROA ROE P/E P/ABV

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2018E

2,279

2.4

1,171

37.4

268

1.3

13.8

12.2

1.7

Source: Company, Angel Research

FY2019E

2,927

2.7

1,556

49.7

305

1.5

16.2

9.2

1.5

Source: Company, Angel Research

Stock Info

Karur Vysa Bank

CMP

137

 Loan growth to pick up from FY18 onwards: KVB had a fairly strong loan

160

CAGR of 14.9% over FY11-17.However, FY17 was year of consolidation and

Upside

16.8%

loan book grew by only 4.7%. We expect loan growth to pick up to 11% over

Sector

Banking

FY17-19. Deposit growth is expected at 9% during the period.

Market Cap (` cr)

8,256

 Asset quality likely to stabilize going ahead: KVB’s slippages remained high

during FY17 and hence GNPAs % went up to 3.58% vs 1.3%. However, large

Beta

1.4

part of the troubled accounts has been classified as NPAs and hence gradually

52 Week High / Low

153 / 80

we expect the asset quality to improve. While in Q1FY18 we saw some

pressure on asset quality, it still remained fairly under control.

3 year-Chart

 NIM likely to see further improvement: There were 25 bps improvements in

160

NIM during FY17, with share of CASA growing and cost of fund coming down

140

NIM is expected to improve further going ahead.

120

100

 Outlook: We expect KVB to post a strong loan book & earnings CAGR of 11%

& 22% over FY2017-19E. The stock currently trades at 1.6x FY2019E ABV. We

have a BUY rating on the stock, with a target price of `160.

Key Financials

Y/E

Op. Inc NIM

PAT

EPS

ABV ROA ROE P/E P/ABV

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2018E

3,289

3.7

660

10.8

75.0

1.0

12.5

12.9

1.8

Source: Company, Angel Research

FY2019E

3,630

3.9

858

14.1

85.7

1.2

14.7

9.9

1.6

Source: Company, Angel Research

August 8, 2017

Top Picks Report | August 2017

Asian Granito

Stock Info

CMP

420

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

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

493

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

Upside

20.8%

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

Sector

Cons. Durable

product sales, which is a high margin business.

Market Cap (` cr)

1,264

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

Beta

1.9

level (35-36% in FY17). It is expected to reach up to 50% in next 2-3 years on

52 Week High / Low

470 / 175

the 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

500

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

450

400

margin from 7.5% in FY16 (excluding merger) to

12-12.5% in coming

350

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

300

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

250

200

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

150

 We expect AGIL to report a net revenue CAGR of ~8.5% to ~`1,286cr and

100

net profit CAGR of ~23% to `59cr over FY2017-19E. We recommend a Buy

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)

FY2018E

1,169

12.5

16.0

10.7

26.3

2.8

10.5

1.3

FY2019E

1,286

12.5

19.7

10.7

21.3

2.5

9.3

1.2

Source: Company, Angel Research

Blue Star

Stock Info

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

CMP

683

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

760

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

Upside

11.3%

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

Sector

Cons. Durable

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

Market Cap (` cr)

6,543

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

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

Beta

0.8

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

52 Week High / Low

724 / 435

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

continue to drive growth.

3 year-Chart

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

800

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

700

from 5.3% in FY2015 to 7.3% in FY2018E. We recommend an accumulate

600

rating on the stock.

500

Key Financials

400

300

Y/E

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

200

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

100

FY2017

4,283

5.9

141

14.9

20.4

41.3

8.2

25.3

1.4

FY2018E

5,077

7.3

211

22.1

26.4

28.1

6.9

18.9

1.2

Source: Company, Angel Research

August 8, 2017

Top Picks Report | August 2017

Stock Info

Siyaram Silk Mills

CMP

2,024

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

2,500

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

Upside

23.5%

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)

1,909

 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

0.9

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

52 Week High / Low

2,491/1,031

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

 Going forward, we expect SSML to report a net sales CAGR of ~12% to

3 year-Chart

~`1,981cr and adj.net profit CAGR of ~16% to `123cr over FY2017-19E on

3,000

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

2,500

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

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

2,000

SSML trades at an inexpensive valuation. We have Buy recommendation on

1,500

the stock and target price of `2,500.

1,000

Key Financials

500

Y/E

Sales

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

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2018E

1,769

12.7

106

113.1

15.4

21.1

3.2

11.3

1.4

FY2019E

1,981

12.7

123

131.1

15.5

18.0

2.8

9.9

1.3

Source: Company, Angel Research

Stock Info

Maruti Suzuki

CMP

7,756

 The Automobile sector is expected to benefit from the GST implementation.

8,544

The sector has seen a pick up in the volumes in FY17 as there were several

Upside

10.2 %

positive factors like normal monsoon and lower interest rates.

Sector

Automobiles

 Maruti Suzuki continues to hold ~50% market share in the passenger vehicles.

Market Cap (` cr)

2,34,067

The launch of exciting models has helped the company to ride on the

premiumization wave that is happening in the country. In the last two years,

Beta

1.3

company has seen improvement in the business mix with the pie of the utility

52 Week High / Low

7,920/4,769

vehicles growing from ~4% to current 15%. With the 3-4 months of waiting

period on these models, strong demand and GST led price decrease; we

3 year-Chart

believe that this pie is expected to grow to ~20% in FY19E.

9,000

 Due to the favorable business mix, company has also been seeing

8,000

improvement in the margins. Company has already moved from ~11-12%

7,000

6,000

EBITDA margin range to current ~14-15% margin ranges. Together with

5,000

higher operating leverage at Gujarat plant and improving business mix, we

4,000

believe that company has further room to improve its margins. We have an

3,000

accumulate rating on the stock with the price target of `8,544.

2,000

1,000

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

FY2018E

81,825

15.0

8,561

283.5

21.8

26.9

5.9

16.5

2.5

FY2019E

101,245

15.0

10,752 356.0

22.3

21.4

4.8

12.8

1.9

Source: Company, Angel Research

August 8, 2017

Top Picks Report | August 2017

Stock Info

TV Today Network

CMP

235

 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

46.4%

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)

1,405

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

Beta

0.7

are also popular among viewers.

52 Week High / Low

360 /248

 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 ~`727cr and net

200

profit CAGR of

~13% to

`121cr over FY2017-19E. 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)

FY2018E

667

23.1

111

18.6

15.6

12.6

2.0

5.9

1.6

Source: Company, Angel Research

FY2019E

727

23.2

121

20.1

17.3

11.7

2.0

5.5

1.5

Source: Company, Angel Research

Stock Info

Music Broadcast

CMP

350

 Radio Industry is protected by licenses for 15 years, thereby restricting the entry

434

of new players. This would support the existing companies to strengthen their

Upside

24.0%

position and maintain a healthy growth rate.

Sector

Media

 It has grabbed the Number 1 position in Mumbai, Bengaluru and Delhi in

Market Cap (` cr)

2,009

terms of number of listener. This is helping MBL to charge premium rate,

which resulting into higher EBITDA margin (33.6%) compare to 22% of ENIL.

Beta

0.4

52 Week High / Low

420/332.9

 MBL outperformed its closest peer with 18.4% CAGR in revenue over FY2013-

17 (ENIL reported 13.2% CAGR in revenue). On the profitability front too,

MBL, with 32.3% CAGR in PAT over FY2013-17, has performed much better

3 year-Chart

than ENIL (-5.2% CAGR in PAT). Moreover, Radio City posted a six year CAGR

390

of 12.1% v/s. 9.1% of industry owing to higher advertising volumes.

380

370

 Capex for 39 licenses have been done for the next 15 years, hence no heavy

360

incremental Capex requirement would emerge. Moreover, the maintenance

350

Capex would be as low as `5-10cr. This would leave sufficient cash flow to

340

distribute as dividend. We have a Buy recommendation on the stock and

330

target price of `434.

320

310

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

FY2018E

317

34.4

9.8

9.3

35.8

3.3

16.7

5.7

FY2019E

372

34.9

14.0

12.0

25.1

3.0

13.5

4.7

Source: Company, Angel Research

August 8, 2017

Top Picks Report | August 2017

Stock Info

KEI Industries

CMP

225

 KEI’s current order book (OB) stands at `3,233cr (segmental break-up:

258

`2,154cr in EPC, `667cr in Cable, `200cr in EHV, `49cr in Substation, rest in

Upside

14.7%

EPC L1 business). Its OB grew by ~28% in the last 3 years due to strong order

inflows from State Electricity Boards, Power grid, etc.

Sector

Real Estate

Market Cap (` cr)

1,756

 KEI’s consistent effort to increase its retail business from 30-32% of revenue in

FY17 to 40-45% of revenue in the next 2-3 years on the back of strengthening

Beta

0.9

distribution network (currently 926 which is expect to increase `1,500 by FY19)

52 Week High / Low

249 / 99

and higher ad spend (increased from `2cr in FY13 to `7cr in FY16 and

expected to spend).

3 year-Chart

 KEI’s export (FY17 - 8-10% of revenue) is expected to reach a level of ~14-

300

15% in next two years with higher order execution from current OB of

250

~`180cr and participation in various international tenders worth `500cr. We

200

expect a strong ~26% growth CAGR over FY2017-19 in exports. We expect

150

KEI to report net revenue CAGR of ~14% to ~`3,392cr and net profit CAGR

of ~13% to `125cr over FY2017-19E. Hence we have an accumulate rating

100

on the stock.

Key Financials

Y/E

Sales

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

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2018E

3,001

10.0

100

13.0

18.2

17.4

3.2

7.5

0.8

Source: Company, Angel Research

FY2018E

3,392

10.0

125

16.1

18.7

14.0

2.6

6.7

0.7

Source: Company, Angel Research

Stock Info

Mahindra Lifespace

CMP

421

 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

24.0%

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,

Market Cap (` cr)

2,156

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

Beta

0.9

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

52 Week High / Low

493 / 319

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

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

3 year-Chart

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

600

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

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

500

400

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

300

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

improvement in company’s fundamentals, strong earnings growth visibility

200

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

100

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

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

FY2017

1,152

22.7

29.9

7.6

14.5

1.0

12.0

2.2

FY2018E

1,300

24.6

138

35.8

8.6

12.1

9.0

8.8

1.7

Source: Company, Angel Research

August 8, 2017

Top Picks Report | August 2017

Stock Info

Navkar

CMP

188

 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

41.0%

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)

2,685

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

Beta

0.8

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

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

52 Week High / Low

247 / 155

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

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

250

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

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

100

Key Financials

Y/E

Sales

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

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2018E

561

42.3

164

11.5

10.5

16.3

1.7

13.1

5.4

FY2019E

617

42.3

181

12.7

10.4

14.8

1.5

11.4

4.7

Source: Company, Angel Research

Stock Info

Alkem Leboratories

CMP

1,840

 Alkem is 5^th largest pharma company is the domestic market and also has

2,161

presence in US. It derives 73% of its revenues come from the Indian markets

Upside

17.4%

while rest come from the other countries. Alkem has leadership position in the

domestic anti infective segment and it is ranked #3 in Gastro-Intestinal and

Sector

Pharmaceutical

Pain/Analgesics segments. Company holds ~3.6% and ~7.9% market share

Market Cap (` cr)

22,000

in the formulations and overall prescriptions in the country.

Beta

0.9

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

52 Week High / Low

2,238 /1,400

a prominent player in acute segment has forayed in chronic segment from

which it expects faster growth. Alkem has been outperforming the domestic

3 year-Chart

industry growth which is likely to continue. Company is focusing on

2,500

monetization of its pipeline (91 ANDAs) in the US with annually ~7-8 ANDAs

launches growing the US revenues by ~26% growth rate from FY17-FY19E.

2,000

 Overall outlook remains strong with 15.8% CAGR in the topline and 15.4%

1,500

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

1,000

Key Financials

500

Y/E

Sales OPM

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

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2018E

6,901

18.4

1,016

85.0

20.2

21.6

4.4

17.3

3.2

FY2019E

7,850

19.1

1,202

100.5

20.1

18.3

3.7

14.5

2.8

Source: Company, Angel Research

August 8, 2017

Top Picks Report | August 2017

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

5.7

10.0

6.0

9.1

5.2

8.8

4.9

9.0

7.9

8.0

7.9

5.0

7.6

7.5

8.0

7.3

7.2

3.8

7.0

4.0

7.0

6.1

3.0

2.8

3.0

2.6

6.0

1.9

1.7

5.0

2.0

4.0

1.0

3.0

Source: CSO, Angel Research

Source: MOSPI, Angel Research

Exhibit 3: Monthly CPI inflation trends

Exhibit 4: Manufacturing and services PMI

56.0

Mfg. PMI

Services PMI

(%)

7.0

54.0

6.1

6.0

52.0

5.1

5.0

4.3

50.0

4.2

3.9

3.6

3.7

4.0

3.4

48.0

3.2

3.0

2.2

46.0

2.0

1.5

44.0

1.0

42.0

40.0

Source: MOSPI, Angel Research

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

Exhibit 5: Exports and imports growth trends

Exhibit 6: Key policy rates

(%)

Exports yoy growth

Imports yoy growth

(%)

Repo rate

Reverse Repo rate

CRR

60.0

7.00

50.0

6.50

40.0

6.00

30.0

5.50

20.0

5.00

10.0

4.50

0.0

4.00

(10.0)

3.50

(20.0)

(30.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

August 8, 2017

Top Picks Report

August 08, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Agri / Agri Chemical

Rallis

Reduce

239

209

4,651

1,937

2,164

13.3

14.3

9.0

11.0

26.6

21.7

4.6

4.0

18.4

19.8

2.4

2.1

United Phosphorus

Neutral

864

43,897

15,176

17,604

18.5

37.4

44.6

23.1

19.4

4.5

3.8

21.4

21.2

3.0

2.5

Auto & Auto Ancillary

Ashok Leyland

Neutral

112

32,792

20,019

22,789

11.1

11.7

4.3

5.5

26.1

20.5

5.1

4.5

19.4

22.0

1.6

1.4

Bajaj Auto

Neutral

2,914

84,316

25,093

27,891

19.5

19.2

143.9

162.5

20.3

17.9

5.7

4.9

30.3

29.4

3.1

2.7

Bharat Forge

Neutral

1,187

27,643

7,726

8,713

20.5

21.2

35.3

42.7

33.6

27.8

6.2

5.6

18.9

20.1

3.6

3.2

Eicher Motors

Neutral

32,121

87,440

16,583

20,447

17.5

18.0

598.0

745.2

53.7

43.1

18.4

14.0

41.2

38.3

5.1

4.1

Gabriel India

Neutral

164

2,362

1,544

1,715

9.0

9.3

5.4

6.3

30.5

26.1

5.8

5.1

18.9

19.5

1.5

1.3

Hero Motocorp

Neutral

3,913

78,135

28,120

30,753

15.2

15.6

169.1

189.2

23.1

20.7

8.0

6.7

30.8

28.2

2.6

2.3

Jamna Auto Industries Neutral

284

2,264

1,486

1,620

9.8

9.9

15.0

17.2

18.9

16.5

4.1

3.5

21.8

21.3

1.6

1.5

L G Balakrishnan & Bros Neutral

739

1,159

1,302

1,432

11.6

11.9

43.7

53.0

16.9

13.9

2.4

2.2

13.8

14.2

1.0

0.9

Mahindra and Mahindra Neutral

1,396

86,717

46,534

53,077

11.6

11.7

67.3

78.1

20.7

17.9

3.4

2.9

15.4

15.8

1.8

1.6

Maruti

Accumulate

7,756

8,495

234,307

67,822

83,717

15.2

15.0

243.0

291.5

31.9

26.6

7.3

6.0

22.9

22.4

3.1

2.5

Minda Industries

Neutral

775

6,694

2,728

3,042

9.0

9.1

68.2

86.2

11.4

9.0

2.6

2.0

23.8

24.3

2.5

2.2

Motherson Sumi

Neutral

336

70,660

45,896

53,687

7.8

8.3

13.0

16.1

25.7

20.9

8.3

6.6

34.7

35.4

1.6

1.4

Rane Brake Lining

Neutral

1,275

1,009

511

562

11.3

11.5

28.1

30.9

45.4

41.3

6.9

6.3

15.3

15.0

2.1

1.9

Setco Automotive

Neutral

512

741

837

13.0

15.2

17.0

2.5

2.3

0.4

15.8

16.3

1.1

1.0

Tata Motors

Neutral

430

124,271

300,209

338,549

8.9

8.4

42.7

54.3

10.1

7.9

1.6

1.4

15.6

17.2

0.5

TVS Motor

Neutral

596

28,291

13,390

15,948

6.9

7.1

12.8

16.5

46.7

36.0

11.6

9.2

26.3

27.2

2.2

1.8

Amara Raja Batteries

Buy

801

962

13,686

5,339

6,220

15.9

15.3

28.0

32.3

28.6

24.8

5.5

4.6

19.1

18.5

2.6

2.2

Exide Industries

Neutral

214

18,216

7,439

8,307

15.0

8.1

9.3

26.5

23.0

3.7

3.3

14.3

16.7

2.1

1.8

Apollo Tyres

Neutral

280

14,237

12,877

14,504

14.3

13.9

21.4

23.0

13.1

12.2

2.0

1.8

16.4

15.2

1.3

1.2

Ceat

Neutral

1,766

7,144

7,524

8,624

13.0

12.7

131.1

144.3

13.5

12.2

2.5

2.1

19.8

18.6

1.0

0.9

JK Tyres

Neutral

161

3,655

7,455

8,056

15.0

21.8

24.5

7.4

6.6

1.5

1.3

22.8

21.3

0.6

0.5

Swaraj Engines

Neutral

1,989

2,470

660

810

15.2

16.4

54.5

72.8

36.5

27.3

11.4

10.3

31.5

39.2

3.6

2.9

Subros

Neutral

239

1,434

1,488

1,681

11.7

11.9

6.4

7.2

37.4

33.4

3.9

3.6

10.8

11.4

1.2

1.0

Indag Rubber

Neutral

185

485

286

326

19.8

16.8

11.7

13.3

15.8

13.9

2.7

2.5

17.8

17.1

1.4

1.2

Capital Goods

ACE

Neutral

648

709

814

4.1

4.6

1.4

2.1

46.8

31.2

1.9

1.8

4.4

6.0

1.1

0.9

BEML

Neutral

1,695

7,059

3,451

4,055

6.3

9.2

31.4

57.9

54.0

29.3

3.2

2.9

6.3

10.9

2.2

1.8

Bharat Electronics

Neutral

182

40,641

8,137

9,169

16.8

17.2

58.7

62.5

3.1

2.9

0.5

0.4

44.6

46.3

4.0

3.6

www.angelbroking.com

Top Picks Report

August 08, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Capital Goods

Voltas

Neutral

536

17,737

6,511

7,514

7.9

8.7

12.9

16.3

41.6

32.9

7.5

6.6

16.7

18.5

2.5

2.1

BGR Energy

Neutral

140

1,012

16,567

33,848

6.0

5.6

7.8

5.9

18.0

23.8

1.0

4.7

4.2

0.2

0.1

BHEL

Neutral

135

32,994

28,797

34,742

2.8

2.3

6.9

58.6

19.5

1.0

1.3

4.8

0.8

0.6

Blue Star

Accumulate

683

760

6,544

4,283

5,077

5.9

7.3

14.9

22.1

45.9

30.9

8.9

7.5

20.4

26.4

1.6

1.3

CG Power and Industrial

Neutral

4,857

5,777

6,120

5.9

7.0

3.3

4.5

23.5

17.2

1.0

4.4

5.9

0.8

0.7

Solutions

Greaves Cotton

Neutral

157

3,832

1,755

1,881

16.8

16.9

7.8

8.5

20.1

18.5

4.0

3.7

20.6

20.9

1.9

1.7

Inox Wind

Neutral

135

3,000

5,605

6,267

15.7

16.4

24.8

30.0

5.5

4.5

1.5

1.1

25.9

24.4

0.6

0.5

KEC International

Neutral

296

7,612

9,294

10,186

7.9

8.1

9.9

11.9

29.9

24.9

4.4

3.8

15.6

16.3

1.1

1.0

KEI Industries

Accumulate

225

258

1,750

2,633

3,001

10.4

10.0

12.7

13.0

17.7

17.3

3.8

3.1

21.4

18.2

0.9

0.8

Thermax

Neutral

901

10,736

5,421

5,940

7.3

25.7

30.2

35.1

29.8

4.2

3.9

12.2

13.1

1.9

1.7

VATech Wabag

Accumulate

641

681

3,500

3,136

3,845

8.9

9.1

26.0

35.9

24.7

17.9

3.1

2.6

13.4

15.9

1.0

0.8

Cement

ACC

Neutral

1,808

33,954

11,225

13,172

13.2

16.9

44.5

75.5

40.6

24.0

3.9

3.6

11.2

14.2

3.0

2.6

Ambuja Cements

Neutral

275

54,605

9,350

10,979

18.2

22.5

5.8

9.5

47.4

29.0

4.0

3.6

10.2

12.5

5.8

5.0

India Cements

Neutral

194

5,964

4,364

4,997

18.5

19.2

7.9

11.3

24.5

17.1

1.8

1.7

8.0

8.5

2.1

1.9

JK Cement

Neutral

1,033

7,220

4,398

5,173

15.5

17.5

31.2

55.5

33.1

18.6

4.0

3.4

12.0

15.5

2.2

1.8

J K Lakshmi Cement

Neutral

440

5,176

2,913

3,412

14.5

19.5

7.5

22.5

58.7

19.6

3.6

3.0

12.5

18.0

2.4

2.0

Orient Cement

Neutral

155

3,179

2,114

2,558

18.5

20.5

8.1

11.3

19.2

13.7

2.8

2.4

9.0

14.0

2.1

1.7

UltraTech Cement

Neutral

4,051

111,211

25,768

30,385

21.0

23.5

111.0

160.0

36.5

25.3

4.7

4.1

13.5

15.8

4.4

3.7

Construction

ITNL

Neutral

2,852

8,946

10,017

31.0

31.6

8.1

9.1

10.7

9.5

0.4

4.2

5.0

3.7

3.4

KNR Constructions

Neutral

208

2,928

1,385

1,673

14.7

14.0

41.2

48.5

5.1

4.3

0.9

0.8

14.9

15.2

2.2

1.8

Larsen & Toubro

Buy

1,171

1,700

163,946

111,017

124,908

11.0

61.1

66.7

19.2

17.6

2.3

2.1

13.1

12.9

2.5

2.3

Gujarat Pipavav Port

Neutral

141

6,821

705

788

52.2

51.7

5.0

5.6

28.2

25.2

2.8

2.5

11.2

9.3

7.9

Nagarjuna Const.

Neutral

4,956

8,842

9,775

9.1

8.8

5.3

6.4

16.8

13.9

1.3

1.2

8.2

9.1

0.7

0.6

PNC Infratech

Neutral

139

3,568

2,350

2,904

13.1

13.2

9.0

8.8

15.5

15.8

0.6

0.5

15.9

13.9

1.6

1.3

Simplex Infra

Neutral

467

2,309

6,829

7,954

10.5

31.4

37.4

14.9

12.5

1.5

1.4

9.9

13.4

0.8

0.6

Power Mech Projects

Neutral

576

847

1,801

2,219

12.7

14.6

72.1

113.9

8.0

5.1

1.5

1.2

16.8

11.9

0.5

0.4

Sadbhav Engineering

Neutral

289

4,958

3,598

4,140

10.3

10.6

9.0

11.9

32.1

24.3

3.4

3.0

9.9

11.9

1.7

1.4

NBCC

Neutral

213

19,125

7,428

9,549

7.9

8.6

8.2

11.0

25.9

19.3

1.3

1.0

28.2

28.7

2.3

1.7

MEP Infra

Neutral

119

1,931

1,877

1,943

30.6

29.8

3.0

4.2

39.6

28.3

19.2

12.9

0.6

2.4

2.2

www.angelbroking.com

Top Picks Report

August 08, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Construction

SIPL

Neutral

102

3,579

1,036

1,252

65.5

66.2

(8.4)

(5.6)

3.8

4.3

(22.8)

(15.9)

11.7

9.7

Engineers India

Neutral

159

10,728

1,725

1,935

16.0

19.1

11.4

13.9

14.0

11.5

1.9

13.4

15.3

5.1

4.6

Financials

Axis Bank

Buy

499

580

119,691

46,932

53,575

3.5

3.4

32.4

44.6

15.4

11.2

2.0

1.7

13.6

16.5

Bank of Baroda

Neutral

157

36,083

19,980

23,178

1.8

11.5

17.3

13.6

9.1

1.6

1.3

8.3

10.1

Canara Bank

Neutral

346

20,693

15,225

16,836

1.8

14.5

28.0

23.9

12.4

1.7

1.3

5.8

8.5

Can Fin Homes

Neutral

2,922

7,777

420

526

3.5

86.5

107.8

33.8

27.1

7.3

6.0

23.6

24.1

Cholamandalam Inv. &

Neutral

1,202

18,792

2,012

2,317

6.3

42.7

53.6

28.2

22.4

4.5

3.8

16.9

18.3

Fin. Co.

Dewan Housing Finance Buy

449

550

14,074

2,225

2,688

2.9

29.7

34.6

15.1

13.0

2.4

1.6

16.1

14.8

Equitas Holdings

Buy

166

235

5,605

939

1,281

11.7

11.5

5.8

8.2

28.6

20.2

2.5

2.2

10.9

11.5

Federal Bank

Buy

112

140

21,840

8,259

8,995

3.0

4.3

5.6

26.1

20.1

2.2

2.0

8.5

10.1

HDFC

Neutral

1,721

274,073

11,475

13,450

3.4

45.3

52.5

38.0

32.8

7.3

6.5

20.2

20.5

HDFC Bank

Neutral

1,780

458,414

46,097

55,433

4.5

58.4

68.0

30.5

26.2

5.3

4.5

18.8

18.6

ICICI Bank

Accumulate

295

335

189,099

42,800

44,686

3.1

3.3

18.0

21.9

16.4

13.5

2.2

2.1

11.1

12.3

Karur Vysya Bank

Buy

137

160

8,264

5,640

6,030

3.3

3.2

8.9

10.0

15.4

13.7

1.6

1.5

11.2

11.4

Lakshmi Vilas Bank

Neutral

174

3,346

3,339

3,799

2.7

2.8

11.0

14.0

15.9

12.5

1.7

1.5

11.2

12.7

LIC Housing Finance

Neutral

680

34,322

3,712

4,293

2.6

2.5

39.0

46.0

17.4

14.8

3.3

2.8

19.9

20.1

Punjab Natl.Bank

Neutral

149

31,664

23,532

23,595

2.3

2.4

6.8

12.6

21.9

11.8

3.4

2.4

3.3

6.5

RBL Bank

Neutral

512

19,420

1,783

2,309

2.6

12.7

16.4

40.3

31.2

4.4

3.9

12.8

13.3

Repco Home Finance

Buy

691

825

4,321

388

457

4.5

4.2

30.0

38.0

23.0

18.2

3.8

3.2

18.0

19.2

South Ind.Bank

Neutral

5,140

6,435

7,578

2.5

2.7

3.1

10.6

9.2

1.4

1.1

10.1

11.2

St Bk of India

Accumulate

304

335

262,285

88,650

98,335

2.6

13.5

18.8

22.5

16.2

2.1

1.9

7.0

8.5

Union Bank

Neutral

143

9,796

13,450

14,925

2.3

25.5

34.5

5.6

4.1

0.8

0.7

7.5

10.2

Yes Bank

Neutral

1,763

80,695

8,978

11,281

3.3

3.4

74.0

90.0

23.8

19.6

4.5

3.8

17.0

17.2

FMCG

Akzo Nobel India

Neutral

1,805

8,656

2,955

3,309

13.3

13.7

57.2

69.3

31.6

26.0

10.3

8.7

32.7

33.3

2.7

2.4

Asian Paints

Neutral

1,146

109,891

17,128

18,978

16.8

16.4

19.1

20.7

60.0

55.4

20.9

19.7

34.8

35.5

6.3

5.7

Britannia

Neutral

4,071

48,875

9,594

11,011

14.6

14.9

80.3

94.0

50.7

43.3

20.8

16.1

41.2

5.0

4.3

Colgate

Neutral

1,066

28,992

4,605

5,149

23.4

23.8

26.9

44.8

39.6

24.8

19.4

64.8

66.8

6.2

5.5

Dabur India

Neutral

315

55,453

8,315

9,405

19.8

20.7

8.1

9.2

38.9

34.2

10.8

9.0

31.6

31.0

6.3

5.6

GlaxoSmith Con*

Neutral

5,505

23,153

4,350

4,823

21.2

21.4

179.2

196.5

30.7

28.0

8.2

6.9

27.1

26.8

4.7

4.2

www.angelbroking.com

Top Picks Report

August 08, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FMCG

Godrej Consumer

Neutral

946

64,455

10,235

11,428

18.4

18.6

41.1

44.2

23.0

21.4

5.1

4.3

24.9

24.8

6.4

5.7

HUL

Neutral

1,186

256,760

35,252

38,495

17.8

20.7

22.4

57.5

53.0

54.9

47.1

95.6

88.9

7.1

6.5

ITC

Neutral

274

333,477

40,059

44,439

38.3

39.2

9.0

10.1

30.5

27.1

8.5

7.4

27.8

27.5

7.8

7.0

Marico

Neutral

334

43,037

6,430

7,349

18.8

19.5

6.4

7.7

52.1

43.3

15.7

13.2

33.2

32.5

6.5

5.6

Nestle*

Neutral

6,685

64,452

10,073

11,807

20.7

21.5

124.8

154.2

53.6

43.4

22.0

19.8

34.8

36.7

6.2

5.3

Tata Global

Neutral

166

10,477

8,675

9,088

9.8

7.4

8.2

22.4

20.2

1.8

1.7

7.9

8.1

1.1

Procter & Gamble

Neutral

8,075

26,212

2,939

3,342

23.2

23.0

146.2

163.7

55.2

49.3

14.0

11.6

25.3

23.5

8.5

7.4

Hygiene

HCL Tech^

Accumulate

882

1,014

125,825

46,723

52,342

22.1

20.9

60.0

62.8

14.7

14.0

3.7

3.2

25.3

22.4

2.4

2.1

Infosys

Buy

965

1,179

221,563

68,484

73,963

26.0

63.0

64.0

15.3

15.1

3.2

3.0

20.8

19.7

2.9

2.6

TCS

Accumulate

2,498

2,651

492,174

117,966

127,403

27.5

27.6

134.3

144.5

18.6

17.3

5.5

5.1

29.8

29.7

3.8

3.6

Tech Mahindra

Buy

399

533

38,886

29,141

31,051

14.4

15.0

32.3

35.6

12.3

11.2

2.1

1.9

17.1

17.0

1.2

1.0

Wipro

Neutral

287

139,885

55,421

58,536

20.3

35.1

36.5

8.2

7.9

1.4

1.2

19.2

14.6

1.9

1.7

Media

D B Corp

Neutral

374

6,885

2,297

2,590

27.4

28.2

21.0

23.4

17.8

16.0

4.2

3.6

23.7

23.1

2.8

2.4

HT Media

Neutral

2,016

2,693

2,991

12.6

12.9

7.9

9.0

11.0

9.6

0.9

7.8

8.3

0.3

0.2

Jagran Prakashan

Buy

179

225

5,857

2,283

2,555

28.0

10.6

12.3

16.9

14.6

3.6

3.1

21.4

2.6

2.3

Sun TV Network

Neutral

727

28,630

2,850

3,265

70.1

71.0

26.2

30.4

27.7

23.9

7.1

6.3

24.3

25.6

9.6

8.3

Hindustan Media

Neutral

270

1,982

1,016

1,138

24.3

25.2

27.3

30.1

9.9

9.0

1.9

1.7

16.2

15.8

1.3

1.1

Ventures

TV Today Network

Buy

235

344

1,400

608

667

21.5

22.3

15.7

19.2

15.0

12.2

2.3

2.0

16.1

16.0

1.9

1.6

Music Broadcast Limited Buy

350

434

1,997

271

317

91.0

109.0

6.0

10.0

58.3

35.0

3.6

3.3

6.5

9.3

7.0

5.7

Metals & Mining

Coal India

Neutral

245

151,833

84,638

94,297

21.4

22.3

24.5

27.1

10.0

9.0

4.2

4.0

42.6

46.0

1.3

1.2

Hind. Zinc

Neutral

285

120,253

14,252

18,465

55.9

48.3

15.8

21.5

18.0

13.2

2.9

2.6

17.0

20.7

8.4

6.5

Hindalco

Neutral

235

52,733

107,899

112,095

7.4

8.2

9.2

13.0

25.6

18.1

1.2

4.8

6.6

1.0

0.9

JSW Steel

Neutral

231

55,802

53,201

58,779

16.1

16.2

130.6

153.7

1.8

1.5

0.2

14.0

14.4

1.8

1.6

NMDC

Neutral

127

40,324

6,643

7,284

44.4

47.7

7.1

7.7

18.0

16.6

1.6

1.5

8.8

9.2

3.8

3.5

SAIL

Neutral

25,999

47,528

53,738

(0.7)

2.1

(1.9)

2.6

24.2

0.7

(1.6)

3.9

1.4

1.3

Vedanta

Neutral

298

110,661

71,744

81,944

19.2

21.7

13.4

20.1

22.2

14.8

1.9

1.7

8.4

11.3

1.9

1.6

Tata Steel

Neutral

616

59,803

121,374

121,856

7.2

8.4

18.6

34.3

33.1

18.0

2.1

1.9

6.1

10.1

1.1

Oil & Gas

GAIL

Neutral

387

65,403

56,220

65,198

9.3

10.1

27.1

33.3

14.3

11.6

1.3

1.2

9.3

10.7

1.4

1.1

ONGC

Neutral

164

210,401

137,222

152,563

15.0

21.8

19.5

24.1

8.4

6.8

0.7

8.5

10.1

1.8

1.6

www.angelbroking.com

Top Picks Report

August 08, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Oil & Gas

Indian Oil Corp

Neutral

413

200,670

373,359

428,656

5.9

5.5

54.0

59.3

7.7

7.0

1.2

1.1

16.0

15.6

0.7

0.6

Reliance Industries

Neutral

1,603

521,383

301,963

358,039

12.1

12.6

87.7

101.7

18.3

15.8

1.9

1.7

10.7

11.3

2.2

1.8

Pharmaceuticals

Alembic Pharma

Accumulate

531

600

10,010

3,101

3,966

19.7

20.5

21.4

25.5

24.8

20.8

5.3

4.3

23.0

22.8

3.2

2.4

Alkem Laboratories Ltd

Buy

1,840

2,161

22,000

5,853

6,901

17.1

18.4

74.6

85.0

24.7

21.7

5.2

4.4

21.1

20.2

3.7

3.2

Aurobindo Pharma

Accumulate

727

823

42,567

14,845

17,086

21.5

22.1

39.4

44.7

18.4

16.3

4.5

3.6

27.6

24.7

3.0

2.6

Aventis*

Neutral

4,225

9,730

2,206

2,508

16.6

16.8

128.9

139.9

32.8

30.2

5.6

4.4

21.6

23.5

4.2

3.5

Cadila Healthcare

Sell

530

450

54,274

9,220

11,584

18.4

20.3

14.5

18.7

36.6

28.4

7.8

6.3

23.5

24.6

6.2

4.8

Cipla

Sell

578

461

46,530

14,281

16,619

15.4

16.2

12.5

19.7

46.3

29.4

3.7

3.3

8.4

12.0

3.4

2.9

Dr Reddy's

Neutral

2,102

34,837

14,081

15,937

16.1

18.6

72.6

105.9

29.0

19.9

2.8

2.6

9.6

13.6

2.7

2.4

Dishman Pharma

Sell

143

1,718

1,890

22.7

22.8

9.5

11.3

10.1

10.9

3.3

2.9

GSK Pharma*

Neutral

2,381

20,167

2,927

3,290

11.8

16.2

34.4

49.6

69.2

48.0

10.1

10.4

13.9

21.3

6.7

6.0

Indoco Remedies

Sell

199

153

1,831

1,067

1,154

12.1

14.9

8.4

11.3

23.7

17.6

2.8

2.5

12.6

15.0

1.9

1.8

Ipca labs

Buy

456

620

5,751

3,211

3,593

13.9

14.5

15.4

19.4

29.6

23.5

2.3

2.1

8.2

9.5

1.9

1.7

Lupin

Buy

974

1,467

44,021

17,120

18,657

24.1

56.9

61.1

17.1

16.0

3.2

2.7

20.7

18.6

2.9

2.3

Natco Pharma

Accumulate

924

1,060

16,100

2,065

1,988

33.1

33.7

27.9

25.7

33.1

35.9

9.7

8.2

29.2

22.9

7.9

8.0

Sun Pharma

Buy

500

712

120,058

30,264

32,899

29.0

26.9

32.7

31.6

15.3

15.8

3.3

2.8

22.2

18.7

3.7

3.3

Power

Tata Power

Neutral

21,165

36,916

39,557

17.4

27.1

5.1

6.3

15.3

12.4

1.4

1.2

9.0

10.3

1.6

1.4

NTPC

Neutral

171

141,327

86,605

95,545

17.5

20.8

11.8

13.4

14.5

12.8

1.5

1.4

10.5

11.1

3.0

Power Grid

Neutral

222

116,246

25,315

29,193

88.2

88.7

14.2

17.2

15.7

13.0

2.4

2.1

15.2

16.1

9.2

8.3

Real Estate

Prestige Estate

Neutral

263

9,866

4,707

5,105

25.2

26.0

10.3

13.0

25.5

20.2

2.1

1.9

10.3

10.2

3.3

2.9

MLIFE

Buy

421

522

2,160

1,152

1,300

22.7

24.6

29.9

35.8

14.1

11.8

1.0

7.6

8.6

2.6

2.2

Telecom

Bharti Airtel

Neutral

418

167,091

105,086

114,808

34.5

34.7

12.2

16.4

34.3

25.5

2.3

2.2

6.8

8.4

2.5

2.2

Idea Cellular

Neutral

33,127

40,133

43,731

37.2

37.1

6.4

6.5

14.4

14.1

1.2

1.1

8.2

7.6

1.8

1.6

zOthers

Abbott India

Neutral

4,376

9,298

3,153

3,583

14.1

14.4

152.2

182.7

28.8

24.0

141.2

120.6

25.6

26.1

2.7

2.3

Asian Granito

Buy

409

480

1,230

1,066

1,169

11.6

12.5

13.0

16.0

31.5

25.6

3.1

2.7

9.5

10.7

1.5

1.3

Bajaj Electricals

Buy

330

395

3,350

4,801

5,351

5.7

6.2

10.4

13.7

31.7

24.1

3.9

3.5

12.4

14.5

0.7

0.6

Banco Products (India)

Neutral

225

1,608

1,353

1,471

12.3

12.4

14.5

16.3

15.5

13.8

21.4

19.3

14.5

14.6

1.1

121.4

Coffee Day Enterprises

Neutral

243

5,000

2,964

3,260

20.5

21.2

4.7

8.0

30.3

2.8

2.6

5.5

8.5

2.1

1.9

Ltd

Competent Automobiles Neutral

203

130

1,137

1,256

3.1

2.7

28.0

23.6

7.3

8.6

39.1

35.4

14.3

11.5

0.1

www.angelbroking.com

Top Picks Report

August 08, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

zOthers

Elecon Engineering

Neutral

548

1,482

1,660

13.7

14.5

3.9

5.8

12.5

8.4

2.9

2.7

7.8

10.9

0.7

0.6

Finolex Cables

Neutral

490

7,489

2,883

3,115

12.0

12.1

14.2

18.6

34.5

26.3

18.3

16.0

15.8

14.6

2.3

2.1

Garware Wall Ropes

Neutral

900

1,970

863

928

15.1

15.2

36.4

39.4

24.7

22.9

4.5

3.8

17.5

15.9

2.2

2.0

Goodyear India*

Neutral

871

2,010

1,598

1,704

10.4

10.2

49.4

52.6

17.6

16.6

81.4

71.4

18.2

17.0

0.9

134.3

Hitachi

Neutral

2,030

5,521

2,081

2,433

8.8

8.9

33.4

39.9

60.8

50.9

49.0

40.9

22.1

21.4

2.6

2.2

HSIL

Neutral

363

2,623

2,384

2,515

15.8

16.3

15.3

19.4

23.7

18.7

23.6

20.3

7.8

9.3

1.3

1.2

Interglobe Aviation

Neutral

1,296

46,856

21,122

26,005

14.5

27.6

110.7

132.1

11.7

9.8

70.0

50.0

168.5

201.1

2.2

1.7

Jyothy Laboratories

Neutral

382

6,934

1,440

2,052

11.5

13.0

8.5

10.0

44.9

38.2

10.9

10.1

18.6

19.3

5.1

3.6

Kirloskar Engines India

Neutral

395

5,712

2,554

2,800

9.9

10.0

10.5

12.1

37.6

32.6

15.7

14.9

10.7

11.7

1.9

1.7

Ltd

Linc Pen & Plastics

Neutral

259

383

382

420

9.3

9.5

13.5

15.7

19.2

16.5

3.3

2.9

17.1

17.3

1.1

1.0

M M Forgings

Neutral

595

718

546

608

20.4

20.7

41.3

48.7

14.4

12.2

81.5

72.1

16.6

17.0

1.2

1.0

Manpasand Bever.

Neutral

774

4,426

836

1,087

19.6

19.4

16.9

23.8

45.8

32.5

5.5

4.8

12.0

14.8

5.0

3.8

Mirza International

Neutral

155

1,868

963

1,069

17.2

18.0

6.1

7.5

25.3

20.7

3.9

3.3

15.0

15.7

2.2

1.9

MT Educare

Neutral

260

366

417

17.7

18.2

9.4

10.8

7.0

6.0

1.5

1.3

22.2

22.3

0.6

0.5

Narayana Hrudaya

Neutral

301

6,147

1,873

2,166

11.5

11.7

2.6

4.0

113.7

75.9

7.0

6.3

6.1

8.3

3.4

2.9

Navkar Corporation

Buy

188

265

2,685

347

371

43.2

37.3

6.7

6.0

28.2

31.4

1.9

1.7

6.2

10.6

8.9

8.3

Navneet Education

Neutral

162

3,774

1,062

1,147

24.0

6.1

6.6

26.5

24.4

5.5

4.8

20.6

19.8

3.6

3.4

Nilkamal

Neutral

1,679

2,506

1,995

2,165

10.7

10.4

69.8

80.6

24.1

20.8

96.0

83.3

16.6

16.5

1.3

1.1

Page Industries

Neutral

16,227

18,099

2,450

3,124

20.1

17.6

299.0

310.0

54.3

52.3

361.4

275.9

47.1

87.5

7.4

5.9

Parag Milk Foods

Neutral

247

2,074

1,919

2,231

9.3

9.6

9.5

12.9

26.1

19.1

4.1

3.3

15.5

17.5

1.2

1.1

Quick Heal

Neutral

209

1,465

408

495

27.3

27.0

7.7

8.8

27.0

23.7

2.5

9.3

10.6

2.7

2.3

Radico Khaitan

Neutral

148

1,965

1,667

1,824

13.0

13.2

6.7

8.2

22.2

18.0

2.0

1.8

9.0

10.2

1.6

1.4

Relaxo Footwears

Neutral

497

5,974

2,085

2,469

9.2

8.2

7.6

8.0

65.8

62.6

25.5

21.8

17.9

18.8

3.0

2.5

S H Kelkar & Co.

Neutral

260

3,754

1,036

1,160

15.1

15.0

6.1

7.2

42.5

36.2

4.5

4.2

10.7

11.5

3.5

3.1

Siyaram Silk Mills

Buy

2,024

2,500

1,897

1,574

1,769

12.5

12.7

97.1

113.1

20.8

17.9

3.2

2.8

15.4

15.5

1.4

1.3

Styrolution ABS India*

Neutral

975

1,715

1,440

1,537

9.2

9.0

40.6

42.6

24.0

22.9

61.3

55.8

12.3

11.6

1.2

1.0

Surya Roshni

Neutral

271

1,187

3,342

3,625

7.8

7.5

17.3

19.8

15.7

13.7

29.8

23.9

10.5

10.8

0.6

Team Lease Serv.

Neutral

1,423

2,432

3,229

4,001

1.5

1.8

22.8

32.8

62.5

43.3

6.7

5.8

10.7

13.4

0.7

0.5

The Byke Hospitality

Neutral

197

790

287

384

20.5

7.6

10.7

25.9

18.4

5.4

4.4

20.7

23.5

2.8

2.1

www.angelbroking.com

Top Picks Report

August 08, 2017

Company Name

Reco

CMP

Target Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E

zOthers

Transport Corporation of

Neutral

291

2,229

2,671

2,911

8.5

8.8

13.9

15.7

21.0

18.6

2.9

2.6

13.7

13.8

0.9

India

TVS Srichakra

Neutral

3,536

2,708

2,304

2,614

13.7

13.8

231.1

266.6

15.3

13.3

397.4

312.9

33.9

29.3

1.2

1.0

UFO Moviez

Neutral

363

1,002

619

685

33.2

33.4

30.0

34.9

12.1

10.4

1.7

1.5

13.8

13.9

1.3

1.0

Visaka Industries

Neutral

475

754

1,051

1,138

10.3

10.4

21.0

23.1

22.6

20.5

60.9

57.0

9.0

9.2

1.0

0.9

VRL Logistics

Neutral

344

3,135

1,902

2,119

16.7

16.6

14.6

16.8

23.6

20.4

5.2

4.5

21.9

22.2

1.8

1.6

VIP Industries

Accumulate

192

218

2,711

1,270

1,450

10.4

5.6

6.5

34.3

29.5

7.1

6.2

20.7

21.1

2.1

1.9

Navin Fluorine

Neutral

725

3,570

789

945

21.1

22.4

24.0

28.7

30.2

25.3

4.9

4.2

17.8

18.5

4.5

3.6

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 08, 2017

www.angelbroking.com

Top Picks Report | August 2017

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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offering of securities of the company covered by Analyst during the past twelve months.

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decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should

make such investigations as 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

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contrary view, if any.

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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)