Angel Top Picks - July 2017

The goods and services tax (GST) became a reality from July 1st 2017. The new

Top Picks

indirect tax regime unifies the country by making India a homogenous market. By

Company

CMP (`)

TP (`)

removing the state barriers, trade becomes easier. While GST, in the current form

Banking/NBFC

may not be the perfect, but it is better than the earlier tax regime and was due for

Dewan Housing

436

520

long. We revisit how GST is likely to benefit the economy.

Karur Vysa Bank

144

160

Consumption

Positive for macros: By removing the complicated indirect tax system, government

has simplified indirect taxes; this is a big relief to the businesses. The new tax

Asian Granito

446

480

regime is expected to improve our ease of doing business ranking which will help

Blue Star

612

760

in bringing more FDI inflows in the country. Also by keeping household items in

Siyaram Silk Mills

2,200

2,500

the lower tax bracket, government has ensured that GST does not exert inflationary

Media

pressure on the economy. GST also requires adherence to invoicing which is

Maruti Suzuki

7,371

8,495

expected increase tax compliance. This will result in widening the tax base and

TV Today

251

344

increasing the tax collection. This is expected to be credit positive for the country

Real Estate/Infra/Logistics/Power

and may lead to improve our credit rating.

KEI Industries

234

258

Benefits for the corporate sector: GST has made India a single market which

Mahindra Lifespace

439

522

means companies will be able to sell their products/services at the same cost

Navkar Corp.

210

265

across the country. Single tax has also removed the state barriers which mean

Pharma

companies will be able to operate hub and spoke model on a more efficient

Alkem Lab.

1,836

2,161

manner. This will reduce the transport cost and bring efficiency in the operations.

Source: Angel Research;

Note: CMP as of July 5, 2017

GST removes the tax differential between the organized and unorganized players

and will help the tax compliant companies/businesses. This will remove the pricing

advantage of unorganized players implying that organized players are expected to

benefit.

Strong boost to the consumption sector: With the implementation of five different

tax rates announced under GST, government has ensured smooth transition from

earlier tax regime to GST. Under GST, due to the reduced logistics costs,

household goods/services prices are likely to soften; this will help curbing the

inflation in long term. The household items, FMCG products are already seeing

price cuts. The automobile sector is also seeing ~3-4% price cuts in the most

vehicle categories; this will be a boost to the consumption sector. Cement sector

has also emerged as a beneficiary after GST rates.

Overall, we expect GST regime to be positive in the long term for the country.

Though we do not deny supply disruption in the initial stages, a bumpier transition

is not expected.

Owing to this, we make few changes in our portfolio, we add Maruti Suzuki which

is expected to see strong volume growth owing to the price cuts after GST. We

continue to hold Asian Granito and Blue Star from consumption sector, Mahindra

Lifespace and Dewan Housing as housing theme. We also remain positive on

Karur Vysa Bank, Alkem laboratories, Navkar Corp, KEI Industries and Siyaram

Silk Mills.

Please refer to important disclosures at the end of this report

Top Picks Report | July 2017

Stock Info

Dewan Housing

CMP

436

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

520

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

Upside

19.3%

expected to report 20% loan growth over next two three years.

Sector

Financials

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

Market Cap (` cr)

13,814

by it in DFHFL Pramerica Life Insurance Co Ltd which added `1969 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

468 / 207

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

500

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

450

3.0%. The recent capital received via stake sale should also aid to the NIM.

400

350

 Outlook: We expect the company’s loan growth to remain 20% over next two

300

years and earnings growth also is likely to be more than 20%.The stock

250

currently trades at 1.6x FY2018E ABV. We maintain Buy on the stock, with a

200

150

target price of `520.

100

Key Financials

Y/E

Op. Inc NIM

PAT

EPS

ABV ROA ROE P/E P/ABV

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017

2,050

2.9

923

29.5

189

1.2

16.3

14.8

2.3

Source: Company, Angel Research

FY2018E

2,500

2.9

1,145

36.6

281

1.2

14.8

11.9

1.6

Source: Company, Angel Research

Stock Info

Karur Vysa Bank

CMP

144

 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

11.1%

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)

8,847

 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.

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

3 year-Chart

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

160

NIM is expected to improve further going ahead.

140

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

120

100

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

recommend Accumulate 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

3,169

3.7

769

12.6

78.2

1.2

14.4

11.4

1.8

FY2019E

3,598

3.9

907

14.9

89.3

1.3

15.2

9.6

1.6

Source: Company, Angel Research

July 6, 2017

Top Picks Report | July 2017

Stock Info

Asian Granito

CMP

446

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

480

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

Upside

7.6%

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

Cons. Durable

product sales, which is a high margin business.

Market Cap (` cr)

1,341

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

Beta

1.9

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

52 Week High / Low

408 / 165

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

margin from 7.5% in FY16 (excluding merger) to

12-12.5% in coming

400

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

350

300

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

250

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

200

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

150

100

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

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

Source: Company, Angel Research

FY2017

1,060

11.6

13.0

9.7

34.3

3.3

13.7

1.6

FY2018E

1,169

12.5

16.0

10.7

27.9

3.0

10.7

1.4

Source: Company, Angel Research

Stock Info

Blue Star

CMP

612

 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

24.2%

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)

5,849

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

Beta

0.8

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

52 Week High / Low

725 / 403

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

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. Moreover, the merger of Blue Star

600

Infotech has infused cash and strengthened the balance sheet. We

500

recommend a Buy rating on the stock.

400

300

Key Financials

200

Y/E

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

100

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017

4,283

5.9

141

14.9

20.4

1.4

FY2018E

5,077

7.3

211

22.1

26.4

27.7

6.7

18.7

1.2

Source: Company, Angel Research

July 6, 2017

Top Picks Report | July 2017

Stock Info

Siyaram Silk Mills

CMP

2,200

 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

13.6%

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)

2,062

 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

2,150/994

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

 Going forward, we expect SSML to report a net sales CAGR of ~4% to

3 year-Chart

~`1,948cr and adj.net profit CAGR of ~10% to `106cr over FY2016-18E on

2,500

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

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

2,000

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

1,500

SSML trades at an inexpensive valuation. We have an Accumulate

recommendation on the stock and target price of `2,376.

1,000

Key Financials

500

Y/E

Sales

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

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017

1,574

12.5

97.1

15.4

22.7

3.5

11.8

1.5

FY2018E

1,769

12.7

106

113.1

15.5

19.4

3.0

10.5

1.3

Source: Company, Angel Research

Stock Info

Maruti Suzuki

CMP

7,371

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

8,495

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

Upside

15.2%

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)

2,22,668

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

7,469/4,162

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.

8,000

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

7,000

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

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 a

3,000

buy rating on the stock with the price target of `8,495.

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)

FY2017

67,985

15.2

7,338

243.0

22.9

30.3

6.9

19.4

2.9

Source: Company, Angel Research

FY2018E

83,717

15.0

8,803

291.5

22.4

25.3

5.7

15.5

2.3

Source: Company, Angel Research

July 6, 2017

Top Picks Report | July 2017

Stock Info

TV Today Network

CMP

251

 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

37.1%

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)

1,497

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 ~10% to ~`667cr and net

200

profit CAGR of

~10% to

`115cr 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)

FY2017

608

21.5

15.7

16.1

2.4

7.9

2.1

Source: Company, Angel Research

FY2018E

667

22.3

115

19.2

16.0

2.1

6.4

1.8

Source: Company, Angel Research

Stock Info

KEI Industries

CMP

234

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

258

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

Upside

10.2%

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)

1,822

 Strengthening distribution network and higher ad Spend to increase B2C

Beta

1.3

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

52 Week High / Low

238/ 94

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)

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

150

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

~13% to ~`3,392cr and net profit CAGR of ~26% to `124cr over FY2016-

19E. Hence we have 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)

FY2017

2,633

10.4

12.7

21.4

18.4

3.9

9.2

0.9

FY2018E

3,001

10.0

100

13.0

18.2

3.3

8.5

0.8

Source: Company, Angel Research

July 6, 2017

Top Picks Report | July 2017

Stock Info

Mahindra Lifespace

CMP

439

 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

18.9%

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)

2,251

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

Beta

0.9

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

52 Week High / Low

493 / 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)

FY2017

1,152

22.7

29.9

7.6

14.7

1.1

12.1

2.3

FY2018E

1,300

24.6

138

35.8

8.6

12.3

1.0

8.9

1.9

Source: Company, Angel Research

Stock Info

Navkar

CMP

210

 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

26.3%

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)

2,993

 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.

52 Week High / Low

247 / 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

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

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)

FY2017

371

37.3

6.0

7.4

2.2

26.1

9.7

FY2018E

561

42.3

164

11.5

10.5

18.3

1.9

21.6

9.1

Source: Company, Angel Research

July 6, 2017

Top Picks Report | July 2017

Stock Info

Alkem Leboratories

CMP

1,832

 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

17.7%

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

Sector

Pharma

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

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

Market Cap (` cr)

21,907

in the formulations and overall prescriptions in the country.

Beta

0.3

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

52 Week High / Low

2,238/ 1,342

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

2,000

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

1,800

1,600

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

1,400

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

1,200

1,000

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

800

600

Key Financials

400

Y/E

Sales

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

200

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2018E

6,901

18.4

1,016

85.0

20.2

21.6

4.4

17.2

3.2

FY2019E

7,850

19.1

1,202

100.5

20.1

18.2

3.7

14.5

2.8

Source: Company, Angel Research

July 6, 2017

Top Picks Report | July 2017

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

10.0

9.2

10.0

8.9

9.0

8.3

8.4

9.0

8.0

7.7

7.9

8.0

7.6

7.5

8.0

7.4

7.0

6.8

5.7

6.0

5.2

7.0

4.9

6.0

6.1

6.0

5.0

3.8

4.0

2.6

2.7

5.0

3.0

1.9

4.0

2.0

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

5.8

6.0

5.1

52.0

5.0

4.3

4.2

3.9

50.0

3.6

3.7

4.0

3.4

3.2

3.0

48.0

3.0

46.0

2.0

1.0

44.0

42.0

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)

(20.0)

3.50

(30.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

July 6, 2017

Top Picks Report

July 06, 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

244

209

4,752

1,937

2,164

13.3

14.3

9.0

11.0

27.2

22.2

4.7

4.1

18.4

19.8

2.5

2.2

United Phosphorus

Neutral

853

43,338

15,176

17,604

18.5

37.4

44.6

22.8

19.1

4.5

3.7

21.4

21.2

3.0

2.5

Auto & Auto Ancillary

Ashok Leyland

Accumulate

102

116

29,748

20,019

22,789

11.1

11.7

4.3

5.5

23.7

18.6

4.6

4.1

19.4

22.0

1.4

1.2

Bajaj Auto

Neutral

2,772

80,207

25,093

27,891

19.5

19.2

143.9

162.5

19.3

17.1

5.4

4.6

30.3

29.4

2.9

2.6

Bharat Forge

Neutral

1,111

25,869

7,726

8,713

20.5

21.2

35.3

42.7

31.5

26.0

5.8

5.3

18.9

20.1

3.4

3.0

Eicher Motors

Neutral

28,067

76,404

16,583

20,447

17.5

18.0

598.0

745.2

46.9

37.7

16.0

12.2

41.2

38.3

4.4

3.5

Gabriel India

Neutral

149

2,142

1,544

1,715

9.0

9.3

5.4

6.3

27.6

23.7

5.2

4.6

18.9

19.5

1.3

1.2

Hero Motocorp

Neutral

3,707

74,029

28,120

30,753

15.2

15.6

169.1

189.2

21.9

19.6

7.6

6.3

30.8

28.2

2.5

2.2

Jamna Auto Industries Neutral

267

2,130

1,486

1,620

9.8

9.9

15.0

17.2

17.8

15.5

3.9

3.3

21.8

21.3

1.5

1.4

L G Balakrishnan & Bros Neutral

772

1,212

1,302

1,432

11.6

11.9

43.7

53.0

17.7

14.6

2.5

2.3

13.8

14.2

1.0

0.9

Mahindra and Mahindra Neutral

1,385

86,024

46,534

53,077

11.6

11.7

67.3

78.1

20.6

17.7

3.3

2.9

15.4

15.8

1.8

1.6

Maruti

Buy

7,371

8,495

222,668

67,822

83,717

15.2

15.0

243.0

291.5

30.3

25.3

6.9

5.7

22.9

22.4

3.0

2.3

Minda Industries

Neutral

672

5,806

2,728

3,042

9.0

9.1

68.2

86.2

9.9

7.8

2.2

1.8

23.8

24.3

2.2

1.9

Motherson Sumi

Neutral

306

64,353

45,896

53,687

7.8

8.3

13.0

16.1

23.4

19.0

7.6

6.0

34.7

35.4

1.5

1.2

Rane Brake Lining

Neutral

1,342

1,062

511

562

11.3

11.5

28.1

30.9

47.8

43.4

7.3

6.6

15.3

15.0

2.2

2.0

Setco Automotive

Neutral

536

741

837

13.0

15.2

17.0

2.6

2.4

0.4

15.8

16.3

1.1

1.0

Tata Motors

Neutral

432

124,748

300,209

338,549

8.9

8.4

42.7

54.3

10.1

8.0

1.6

1.4

15.6

17.2

0.5

TVS Motor

Neutral

547

26,004

13,390

15,948

6.9

7.1

12.8

16.5

42.9

33.1

10.7

8.5

26.3

27.2

2.0

1.6

Amara Raja Batteries

Accumulate

848

962

14,480

5,339

6,220

15.9

15.3

28.0

32.3

30.3

26.2

5.8

4.9

19.1

18.5

2.7

2.3

Exide Industries

Neutral

228

19,389

7,439

8,307

15.0

8.1

9.3

28.2

24.5

3.9

3.5

14.3

16.7

2.2

2.0

Apollo Tyres

Neutral

255

12,967

12,877

14,504

14.3

13.9

21.4

23.0

11.9

11.1

1.9

1.6

16.4

15.2

1.2

1.1

Ceat

Neutral

1,865

7,545

7,524

8,624

13.0

12.7

131.1

144.3

14.2

12.9

2.6

2.2

19.8

18.6

1.1

0.9

JK Tyres

Neutral

170

3,852

7,455

8,056

15.0

21.8

24.5

7.8

6.9

1.6

1.3

22.8

21.3

0.6

Swaraj Engines

Neutral

2,348

2,916

660

810

15.2

16.4

54.5

72.8

43.1

32.3

13.4

12.2

31.5

39.2

4.2

3.4

Subros

Neutral

253

1,519

1,488

1,681

11.7

11.9

6.4

7.2

39.6

35.3

4.2

3.8

10.8

11.4

1.3

1.1

Indag Rubber

Neutral

210

551

286

326

19.8

16.8

11.7

13.3

17.9

15.7

3.0

2.8

17.8

17.1

1.6

1.4

Capital Goods

ACE

Neutral

723

709

814

4.1

4.6

1.4

2.1

52.2

34.8

2.2

2.0

4.4

6.0

1.2

1.0

BEML

Neutral

1,568

6,530

3,451

4,055

6.3

9.2

31.4

57.9

49.9

27.1

3.0

2.7

6.3

10.9

2.0

1.7

Bharat Electronics

Neutral

170

37,882

8,137

9,169

16.8

17.2

58.7

62.5

2.9

2.7

0.5

0.4

44.6

46.3

3.6

3.3

www.angelbroking.com

Top Picks Report

July 06, 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

475

15,725

6,511

7,514

7.9

8.7

12.9

16.3

36.8

29.2

6.6

5.8

16.7

18.5

2.2

1.8

BGR Energy

Neutral

154

1,109

16,567

33,848

6.0

5.6

7.8

5.9

19.7

26.1

1.1

4.7

4.2

0.2

0.1

BHEL

Neutral

134

32,859

28,797

34,742

2.8

2.3

6.9

58.4

19.5

1.0

1.3

4.8

0.8

0.6

Blue Star

Buy

612

760

5,849

4,283

5,077

5.9

7.3

14.9

22.1

41.1

27.6

8.0

6.7

20.4

26.4

1.4

1.2

CG Power and Industrial

Neutral

5,202

5,777

6,120

5.9

7.0

3.3

4.5

25.2

18.4

1.1

4.4

5.9

0.9

0.7

Solutions

Greaves Cotton

Neutral

160

3,916

1,755

1,881

16.8

16.9

7.8

8.5

20.6

18.9

4.1

3.8

20.6

20.9

1.9

1.8

Inox Wind

Neutral

146

3,239

5,605

6,267

15.7

16.4

24.8

30.0

5.9

4.9

1.6

1.2

25.9

24.4

0.6

0.5

KEC International

Neutral

257

6,608

9,294

10,186

7.9

8.1

9.9

11.9

26.0

21.6

3.8

3.3

15.6

16.3

0.9

KEI Industries

Accumulate

234

258

1,822

2,633

3,001

10.4

10.0

12.7

13.0

18.4

18.0

3.9

3.3

21.4

18.2

0.9

0.8

Thermax

Neutral

935

11,138

5,421

5,940

7.3

25.7

30.2

36.4

31.0

4.4

4.0

12.2

13.1

1.9

1.8

VATech Wabag

Neutral

680

3,712

3,136

3,845

8.9

9.1

26.0

35.9

26.2

18.9

3.3

2.8

13.4

15.9

1.1

0.9

Cement

ACC

Neutral

1,596

29,977

11,225

13,172

13.2

16.9

44.5

75.5

35.9

21.1

3.4

3.1

11.2

14.2

2.7

2.3

Ambuja Cements

Neutral

252

50,118

9,350

10,979

18.2

22.5

5.8

9.5

43.5

26.6

3.7

3.3

10.2

12.5

5.4

4.6

India Cements

Neutral

205

6,331

4,364

4,997

18.5

19.2

7.9

11.3

26.0

18.2

1.9

1.8

8.0

8.5

2.2

1.9

JK Cement

Neutral

980

6,851

4,398

5,173

15.5

17.5

31.2

55.5

31.4

17.7

3.8

3.3

12.0

15.5

2.1

1.8

J K Lakshmi Cement

Neutral

475

5,586

2,913

3,412

14.5

19.5

7.5

22.5

63.3

21.1

3.9

3.3

12.5

18.0

2.5

2.1

Orient Cement

Neutral

152

3,121

2,114

2,558

18.5

20.5

8.1

11.3

18.8

13.5

2.8

2.3

9.0

14.0

2.1

1.6

UltraTech Cement

Neutral

4,080

112,001

25,768

30,385

21.0

23.5

111.0

160.0

36.8

25.5

4.7

4.1

13.5

15.8

4.4

3.7

Construction

ITNL

Neutral

3,230

8,946

10,017

31.0

31.6

8.1

9.1

12.1

10.8

0.5

4.2

5.0

3.7

3.4

KNR Constructions

Neutral

207

2,911

1,385

1,673

14.7

14.0

41.2

48.5

5.0

4.3

0.9

0.8

14.9

15.2

2.2

1.8

Larsen & Toubro

Neutral

1,696

158,265

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

Gujarat Pipavav Port

Neutral

150

7,252

705

788

52.2

51.7

5.0

5.6

30.0

26.8

3.0

2.7

11.2

9.9

8.4

Nagarjuna Const.

Neutral

5,034

8,842

9,775

9.1

8.8

5.3

6.4

17.1

14.2

1.4

1.2

8.2

9.1

0.7

0.6

PNC Infratech

Neutral

144

3,695

2,350

2,904

13.1

13.2

9.0

8.8

16.0

16.4

0.6

0.5

15.9

13.9

1.7

1.4

Simplex Infra

Neutral

556

2,751

6,829

7,954

10.5

31.4

37.4

17.7

14.9

1.8

1.7

9.9

13.4

0.8

0.7

Power Mech Projects

Neutral

589

867

1,801

2,219

12.7

14.6

72.1

113.9

8.2

5.2

1.5

1.3

16.8

11.9

0.5

0.4

Sadbhav Engineering

Neutral

305

5,228

3,598

4,140

10.3

10.6

9.0

11.9

33.9

25.6

3.5

3.1

9.9

11.9

1.7

1.5

NBCC

Neutral

206

18,549

7,428

9,549

7.9

8.6

8.2

11.0

25.1

18.7

1.3

1.0

28.2

28.7

2.2

1.7

MEP Infra

Neutral

126

2,051

1,877

1,943

30.6

29.8

3.0

4.2

42.1

30.0

20.4

13.7

0.6

2.5

2.3

www.angelbroking.com

Top Picks Report

July 06, 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

110

3,874

1,036

1,252

65.5

66.2

(8.4)

(5.6)

4.1

4.7

(22.8)

(15.9)

12.0

9.9

Engineers India

Neutral

157

10,570

1,725

1,935

16.0

19.1

11.4

13.9

13.8

11.3

1.9

1.8

13.4

15.3

5.1

4.5

Financials

Axis Bank

Accumulate

514

580

123,154

46,932

53,575

3.5

3.4

32.4

44.6

15.9

11.5

2.0

1.8

13.6

16.5

Bank of Baroda

Neutral

161

37,062

19,980

23,178

1.8

11.5

17.3

14.0

9.3

1.6

1.3

8.3

10.1

Canara Bank

Neutral

333

19,866

15,225

16,836

1.8

14.5

28.0

22.9

11.9

1.6

1.3

5.8

8.5

Can Fin Homes

Neutral

3,231

8,600

420

526

3.5

86.5

107.8

37.4

30.0

8.0

6.6

23.6

24.1

Cholamandalam Inv. &

Accumulate

1,117

1,230

17,459

2,012

2,317

6.3

42.7

53.6

26.2

20.8

4.1

3.6

16.9

18.3

Fin. Co.

Dewan Housing Finance Buy

436

520

13,665

2,225

2,688

2.9

29.7

34.6

14.7

12.6

2.4

1.6

16.1

14.8

Equitas Holdings

Buy

159

235

5,368

939

1,281

11.7

11.5

5.8

8.2

27.4

19.4

2.4

2.1

10.9

11.5

Federal Bank

Accumulate

115

125

22,286

8,259

8,995

3.0

4.3

5.6

26.7

20.5

2.3

2.1

8.5

10.1

HDFC

Neutral

1,629

259,546

11,475

13,450

3.4

45.3

52.5

36.0

31.0

6.9

6.1

20.2

20.5

HDFC Bank

Neutral

1,651

424,845

46,097

55,433

4.5

58.4

68.0

28.3

24.3

5.0

4.1

18.8

18.6

ICICI Bank

Accumulate

293

315

187,639

42,800

44,686

3.1

3.3

18.0

21.9

16.3

13.4

2.2

2.0

11.1

12.3

Karur Vysya Bank

Accumulate

144

160

8,684

5,640

6,030

3.3

3.2

8.9

10.0

16.2

14.4

1.7

1.6

11.2

11.4

Lakshmi Vilas Bank

Neutral

208

3,981

3,339

3,799

2.7

2.8

11.0

14.0

18.9

14.8

2.0

1.8

11.2

12.7

LIC Housing Finance

Neutral

752

37,943

3,712

4,293

2.6

2.5

39.0

46.0

19.3

16.3

3.6

3.1

19.9

20.1

Punjab Natl.Bank

Neutral

137

29,164

23,532

23,595

2.3

2.4

6.8

12.6

20.2

10.9

3.1

2.2

3.3

6.5

RBL Bank

Neutral

524

19,744

1,783

2,309

2.6

12.7

16.4

41.3

32.0

4.5

4.0

12.8

13.3

Repco Home Finance

Neutral

811

5,074

388

457

4.5

4.2

30.0

38.0

27.0

21.3

4.5

3.8

18.0

19.2

South Ind.Bank

Neutral

5,004

6,435

7,578

2.5

2.7

3.1

10.3

9.0

1.3

1.1

10.1

11.2

St Bk of India

Neutral

275

237,381

88,650

98,335

2.6

13.5

18.8

20.4

14.6

1.9

1.7

7.0

8.5

Union Bank

Neutral

149

10,267

13,450

14,925

2.3

25.5

34.5

5.9

4.3

0.9

0.7

7.5

10.2

Yes Bank

Neutral

1,504

68,818

8,978

11,281

3.3

3.4

74.0

90.0

20.3

16.7

3.9

3.3

17.0

17.2

FMCG

Akzo Nobel India

Neutral

1,833

8,791

2,955

3,309

13.3

13.7

57.2

69.3

32.1

26.4

10.5

8.8

32.7

33.3

2.8

2.4

Asian Paints

Neutral

1,126

108,034

17,128

18,978

16.8

16.4

19.1

20.7

59.0

54.4

20.5

19.4

34.8

35.5

6.2

5.6

Britannia

Neutral

3,733

44,800

9,594

11,011

14.6

14.9

80.3

94.0

46.5

39.7

19.1

14.8

41.2

4.5

3.9

Colgate

Neutral

1,114

30,306

4,605

5,149

23.4

23.8

26.9

46.8

41.4

25.9

20.3

64.8

66.8

6.5

5.8

Dabur India

Neutral

298

52,449

8,315

9,405

19.8

20.7

8.1

9.2

36.8

32.4

10.2

8.5

31.6

31.0

6.0

5.2

GlaxoSmith Con*

Neutral

5,504

23,146

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

July 06, 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

983

66,928

10,235

11,428

18.4

18.6

41.1

44.2

23.9

22.2

5.3

4.5

24.9

24.8

6.6

5.9

HUL

Neutral

1,097

237,507

35,252

38,495

17.8

20.7

22.4

53.2

49.0

50.8

43.6

95.6

88.9

6.6

6.0

ITC

Neutral

331

402,139

40,059

44,439

38.3

39.2

9.0

10.1

36.9

32.7

10.3

9.0

27.8

27.5

9.5

8.6

Marico

Neutral

325

41,934

6,430

7,349

18.8

19.5

6.4

7.7

50.8

42.2

15.3

12.9

33.2

32.5

6.3

5.5

Nestle*

Neutral

6,908

66,606

10,073

11,807

20.7

21.5

124.8

154.2

55.4

44.8

22.7

20.4

34.8

36.7

6.4

5.5

Tata Global

Neutral

156

9,855

8,675

9,088

9.8

7.4

8.2

21.1

19.0

1.7

1.6

7.9

8.1

1.1

1.0

Procter & Gamble

Neutral

8,050

26,131

2,939

3,342

23.2

23.0

146.2

163.7

55.1

49.2

13.9

11.6

25.3

23.5

8.4

7.3

Hygiene

HCL Tech^

Buy

836

1,014

119,261

46,723

52,342

22.1

20.9

60.0

62.8

13.9

13.3

3.5

3.0

25.3

22.4

2.3

1.9

Infosys

Buy

951

1,179

218,451

68,484

73,963

26.0

63.0

64.0

15.1

14.9

3.2

2.9

20.8

19.7

2.9

2.5

TCS

Accumulate

2,358

2,651

464,578

117,966

127,403

27.5

27.6

134.3

144.5

17.6

16.3

5.2

4.9

29.8

29.7

3.6

3.3

Tech Mahindra

Buy

378

533

36,872

29,141

31,051

14.4

15.0

32.3

35.6

11.7

10.6

2.0

1.8

17.1

17.0

1.1

1.0

Wipro

Accumulate

258

280

125,328

55,421

58,536

20.3

35.1

36.5

7.3

7.1

1.3

1.1

19.2

14.6

1.7

1.4

Media

D B Corp

Neutral

382

7,026

2,297

2,590

27.4

28.2

21.0

23.4

18.2

16.3

4.2

3.7

23.7

23.1

2.9

2.5

HT Media

Neutral

1,904

2,693

2,991

12.6

12.9

7.9

9.0

10.4

9.1

0.9

0.8

7.8

8.3

0.3

0.2

Jagran Prakashan

Buy

184

225

6,017

2,283

2,555

28.0

10.6

12.3

17.3

15.0

3.7

3.2

21.4

2.6

2.3

Sun TV Network

Neutral

824

32,465

2,850

3,265

70.1

71.0

26.2

30.4

31.4

27.1

8.0

7.1

24.3

25.6

11.0

9.5

Hindustan Media

Neutral

274

2,012

1,016

1,138

24.3

25.2

27.3

30.1

10.0

9.1

1.9

1.7

16.2

15.8

1.3

1.1

Ventures

TV Today Network

Buy

251

344

1,497

608

667

21.5

22.3

15.7

19.2

16.0

13.0

2.4

2.1

16.1

16.0

2.1

1.8

Metals & Mining

Coal India

Neutral

248

153,633

84,638

94,297

21.4

22.3

24.5

27.1

10.1

9.1

4.2

4.0

42.6

46.0

1.3

1.2

Hind. Zinc

Neutral

269

113,809

14,252

18,465

55.9

48.3

15.8

21.5

17.1

12.5

2.8

2.4

17.0

20.7

8.0

6.2

Hindalco

Neutral

199

44,587

107,899

112,095

7.4

8.2

9.2

13.0

21.6

15.3

1.0

4.8

6.6

0.9

JSW Steel

Neutral

212

51,318

53,201

58,779

16.1

16.2

130.6

153.7

1.6

1.4

0.2

14.0

14.4

1.7

1.5

NMDC

Neutral

111

35,167

6,643

7,284

44.4

47.7

7.1

7.7

15.7

14.4

1.4

1.3

8.8

9.2

3.1

2.7

SAIL

Neutral

24,615

47,528

53,738

(0.7)

2.1

(1.9)

2.6

22.9

0.7

0.6

(1.6)

3.9

1.4

1.2

Vedanta

Neutral

261

97,167

71,744

81,944

19.2

21.7

13.4

20.1

19.5

13.0

1.7

1.5

8.4

11.3

1.7

1.4

Tata Steel

Neutral

550

53,393

121,374

121,856

7.2

8.4

18.6

34.3

29.6

16.0

1.8

1.7

6.1

10.1

1.1

Oil & Gas

GAIL

Neutral

363

61,386

56,220

65,198

9.3

10.1

27.1

33.3

13.4

10.9

1.2

1.1

9.3

10.7

1.3

1.1

ONGC

Neutral

163

208,733

137,222

152,563

15.0

21.8

19.5

24.1

8.3

6.8

0.7

8.5

10.1

1.8

1.6

Indian Oil Corp

Neutral

386

187,292

373,359

428,656

5.9

5.5

54.0

59.3

7.1

6.5

1.1

1.0

16.0

15.6

0.7

0.6

www.angelbroking.com

Top Picks Report

July 06, 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

Reliance Industries

Neutral

1,440

468,160

301,963

358,039

12.1

12.6

87.7

101.7

16.4

14.2

1.7

1.5

10.7

11.3

2.0

1.7

Pharmaceuticals

Alembic Pharma

Buy

519

648

9,787

3,101

3,966

19.7

20.5

21.4

25.5

24.3

20.4

5.2

4.2

23.0

22.8

3.1

2.3

Alkem Laboratories Ltd

Buy

1,836

2,161

21,950

5,853

6,901

17.1

18.4

74.6

85.0

24.6

21.6

5.2

4.4

21.1

20.2

3.7

3.2

Aurobindo Pharma

Buy

679

823

39,770

14,845

17,086

21.5

22.1

39.4

44.7

17.2

15.2

4.2

3.4

27.6

24.7

2.8

2.4

Aventis*

Neutral

4,190

9,649

2,206

2,508

16.6

16.8

128.9

139.9

32.5

30.0

5.6

4.4

21.6

23.5

4.1

3.5

Cadila Healthcare

Reduce

516

450

52,871

9,220

11,584

18.4

20.3

14.5

18.7

35.6

27.6

7.6

6.2

23.5

24.6

6.1

4.6

Cipla

Sell

546

461

43,905

14,281

16,619

15.4

16.2

12.5

19.7

43.7

27.7

3.5

3.2

8.4

12.0

3.2

2.8

Dr Reddy's

Neutral

2,658

44,056

14,081

15,937

16.1

18.6

72.6

105.9

36.6

25.1

3.6

3.2

9.6

13.6

3.4

3.0

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

2,566

21,736

2,927

3,290

11.8

16.2

34.4

49.6

74.6

51.7

10.8

11.3

13.9

21.3

7.2

6.5

Indoco Remedies

Sell

202

153

1,862

1,067

1,154

12.1

14.9

8.4

11.3

24.1

17.9

2.9

2.5

12.6

15.0

1.9

1.8

Ipca labs

Buy

481

620

6,063

3,211

3,593

13.9

14.5

15.4

19.4

31.2

24.8

2.5

2.3

8.2

9.5

2.0

1.8

Lupin

Buy

1,084

1,526

48,969

17,120

18,657

24.1

56.9

61.1

19.1

17.7

3.6

3.0

20.7

18.6

3.2

2.6

Natco Pharma

Accumulate

984

1,060

17,152

2,065

1,988

33.1

33.7

27.9

25.7

35.3

38.3

10.3

8.8

29.2

22.9

8.4

8.5

Sun Pharma

Buy

551

712

132,102

30,264

32,899

29.0

26.9

32.7

31.6

16.8

17.4

3.6

3.1

22.2

18.7

4.1

3.7

Power

Tata Power

Neutral

22,112

36,916

39,557

17.4

27.1

5.1

6.3

16.0

13.0

1.4

1.3

9.0

10.3

1.6

1.5

NTPC

Neutral

159

130,938

86,605

95,545

17.5

20.8

11.8

13.4

13.5

11.9

1.4

1.3

10.5

11.1

2.9

2.8

Power Grid

Accumulate

210

223

109,968

25,315

29,193

88.2

88.7

14.2

17.2

14.9

12.3

2.3

2.0

15.2

16.1

9.0

8.1

Real Estate

Prestige Estate

Neutral

250

9,368

4,707

5,105

25.2

26.0

10.3

13.0

24.3

19.2

1.9

1.8

10.3

10.2

3.2

2.8

MLIFE

Buy

439

522

2,251

1,152

1,300

22.7

24.6

29.9

35.8

14.7

12.3

1.1

1.0

7.6

8.6

2.7

2.3

Telecom

Bharti Airtel

Neutral

376

150,422

105,086

114,808

34.5

34.7

12.2

16.4

30.8

23.0

2.1

2.0

6.8

8.4

2.3

2.0

Idea Cellular

Neutral

30,129

40,133

43,731

37.2

37.1

6.4

6.5

13.1

12.9

1.1

1.0

8.2

7.6

1.8

1.5

zOthers

Abbott India

Neutral

4,226

8,980

3,153

3,583

14.1

14.4

152.2

182.7

27.8

23.1

136.3

116.4

25.6

26.1

2.6

2.2

Asian Granito

Accumulate

446

480

1,341

1,066

1,169

11.6

12.5

13.0

16.0

34.3

27.9

3.3

3.0

9.5

10.7

1.6

1.4

Bajaj Electricals

Buy

323

395

3,271

4,801

5,351

5.7

6.2

10.4

13.7

31.0

23.6

3.8

3.4

12.4

14.5

0.7

0.6

Banco Products (India)

Neutral

219

1,564

1,353

1,471

12.3

12.4

14.5

16.3

15.1

13.4

20.8

18.8

14.5

14.6

1.1

117.8

Coffee Day Enterprises

Neutral

248

5,113

2,964

3,260

20.5

21.2

4.7

8.0

31.0

2.9

2.6

5.5

8.5

2.1

1.9

Ltd

Competent Automobiles Neutral

191

122

1,137

1,256

3.1

2.7

28.0

23.6

6.8

8.1

36.7

33.2

14.3

11.5

0.1

Elecon Engineering

Neutral

675

1,482

1,660

13.7

14.5

3.9

5.8

15.4

10.4

3.6

3.3

7.8

10.9

0.8

0.7

www.angelbroking.com

Top Picks Report

July 06, 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

Finolex Cables

Neutral

485

7,420

2,883

3,115

12.0

12.1

14.2

18.6

34.2

26.1

18.2

15.9

15.8

14.6

2.3

2.1

Garware Wall Ropes

Neutral

878

1,920

863

928

15.1

15.2

36.4

39.4

24.1

22.3

4.4

3.7

17.5

15.9

2.1

2.0

Goodyear India*

Neutral

910

2,100

1,598

1,704

10.4

10.2

49.4

52.6

18.4

17.3

85.1

74.6

18.2

17.0

1.0

142.9

Hitachi

Neutral

1,954

5,313

2,081

2,433

8.8

8.9

33.4

39.9

58.5

49.0

47.2

39.3

22.1

21.4

2.6

2.2

HSIL

Neutral

404

2,922

2,384

2,515

15.8

16.3

15.3

19.4

26.4

20.8

26.2

22.6

7.8

9.3

1.4

1.3

Interglobe Aviation

Neutral

1,216

43,985

21,122

26,005

14.5

27.6

110.7

132.1

11.0

9.2

65.8

47.0

168.5

201.1

2.1

1.6

Jyothy Laboratories

Neutral

361

6,562

1,440

2,052

11.5

13.0

8.5

10.0

42.5

36.1

10.3

9.5

18.6

19.3

4.8

3.4

Kirloskar Engines India

Neutral

393

5,680

2,554

2,800

9.9

10.0

10.5

12.1

37.4

32.5

15.7

14.8

10.7

11.7

1.9

1.7

Ltd

Linc Pen & Plastics

Neutral

280

414

382

420

9.3

9.5

13.5

15.7

20.8

17.8

3.6

3.1

17.1

17.3

1.2

1.0

M M Forgings

Neutral

635

766

546

608

20.4

20.7

41.3

48.7

15.4

13.0

87.0

77.0

16.6

17.0

1.2

1.1

Manpasand Bever.

Neutral

771

4,409

836

1,087

19.6

19.4

16.9

23.8

45.6

32.4

5.5

4.8

12.0

14.8

5.0

3.8

Mirza International

Neutral

165

1,986

963

1,069

17.2

18.0

6.1

7.5

26.9

22.0

4.1

3.5

15.0

15.7

2.3

2.0

MT Educare

Neutral

254

366

417

17.7

18.2

9.4

10.8

6.8

5.9

1.5

1.3

22.2

22.3

0.6

0.5

Narayana Hrudaya

Neutral

316

6,465

1,873

2,166

11.5

11.7

2.6

4.0

119.6

79.8

7.3

6.6

6.1

8.3

3.6

3.1

Navkar Corporation

Buy

210

265

2,993

347

371

43.2

37.3

6.7

6.0

31.5

35.0

2.2

1.9

6.2

10.6

9.7

9.1

Navneet Education

Neutral

177

4,134

1,062

1,147

24.0

6.1

6.6

29.1

26.7

6.0

5.3

20.6

19.8

4.0

3.7

Nilkamal

Neutral

1,932

2,884

1,995

2,165

10.7

10.4

69.8

80.6

27.7

24.0

110.4

95.9

16.6

16.5

1.4

1.3

Page Industries

Neutral

17,956

20,028

2,450

3,124

20.1

17.6

299.0

310.0

60.1

57.9

399.9

305.3

47.1

87.5

8.2

6.5

Parag Milk Foods

Neutral

225

1,896

1,919

2,231

9.3

9.6

9.5

12.9

23.9

17.4

3.7

3.1

15.5

17.5

1.1

1.0

Quick Heal

Neutral

203

1,422

408

495

27.3

27.0

7.7

8.8

26.2

23.0

2.4

9.3

10.6

2.6

2.2

Radico Khaitan

Accumulate

134

147

1,784

1,667

1,824

13.0

13.2

6.7

8.2

20.2

16.4

1.8

1.7

9.0

10.2

1.5

1.3

Relaxo Footwears

Neutral

518

6,226

2,085

2,469

9.2

8.2

7.6

8.0

68.6

65.2

26.6

22.7

17.9

18.8

3.1

2.6

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

Accumulate

2,200

2,500

2,062

1,574

1,769

12.5

12.7

97.1

113.1

22.7

19.5

3.5

3.0

15.4

15.5

1.5

1.3

Styrolution ABS India*

Neutral

916

1,610

1,440

1,537

9.2

9.0

40.6

42.6

22.6

21.5

57.6

52.3

12.3

11.6

1.1

1.0

Surya Roshni

Neutral

293

1,286

3,342

3,625

7.8

7.5

17.3

19.8

17.0

14.9

32.2

25.9

10.5

10.8

0.6

Team Lease Serv.

Neutral

1,436

2,455

3,229

4,001

1.5

1.8

22.8

32.8

63.1

43.7

6.8

5.9

10.7

13.4

0.7

0.5

The Byke Hospitality

Neutral

189

759

287

384

20.5

7.6

10.7

24.9

17.7

5.2

4.2

20.7

23.5

2.7

2.0

Transport Corporation of

Neutral

341

2,609

2,671

2,911

8.5

8.8

13.9

15.7

24.6

21.8

3.4

3.0

13.7

13.8

1.1

1.0

India

www.angelbroking.com

Top Picks Report

July 06, 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

TVS Srichakra

Neutral

3,849

2,947

2,304

2,614

13.7

13.8

231.1

266.6

16.7

14.4

432.5

340.5

33.9

29.3

1.3

1.1

UFO Moviez

Neutral

387

1,068

619

685

33.2

33.4

30.0

34.9

12.9

11.1

1.8

1.5

13.8

13.9

1.4

1.1

Visaka Industries

Neutral

510

810

1,051

1,138

10.3

10.4

21.0

23.1

24.3

22.0

65.4

61.2

9.0

9.2

1.0

VRL Logistics

Neutral

336

3,069

1,902

2,119

16.7

16.6

14.6

16.8

23.1

20.0

5.1

4.4

21.9

22.2

1.7

1.5

VIP Industries

Accumulate

193

218

2,722

1,270

1,450

10.4

5.6

6.5

34.4

29.6

7.1

6.2

20.7

21.1

2.1

1.9

Navin Fluorine

Buy

3,032

3,650

2,984

789

945

21.1

22.4

120.1

143.4

25.2

21.1

4.1

3.5

17.8

18.5

3.7

3.0

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on July 05, 2017

www.angelbroking.com

Top Picks Report | July 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)