Market Outlook
January 01, 2018
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open flat tracking global indices and SGX Nifty.
BSE Sensex
0.6
209
34,057
US Market were mixed to higher ahead of Friday's open, as investors get ready for
Nifty
0.5
53
10,531
the start of a new trading year. Trading has been lighter than usual this week as
Mid Cap
0.7
130
17,822
investors get ready for the New Year.
Small Cap
0.6
121
19,231
Bankex
0.4
103
28,857
The majority of the European markets ended Friday's session with small losses.
However, despite today's weak performance, many markets are ending the year with
impressive gains. Overall trading volume remained thin ahead of the long holiday
Global Indices
Chg (%)
(Pts)
(Close)
weekend. There were few catalysts to drive trading and many traders remain away
Dow Jones
(0.5)
(118)
24,719
from their desks after the Christmas holiday.
Nasdaq
(0.7)
(47)
6,903
Indian benchmark stock indices Sensex and the Nifty50 ended the final session of
FTSE
0.9
65
7,688
calendar year 2017 on an upbeat note, with investors indulging in some hectic
Nikkei
(0.1)
(19)
22,765
buying at several counters from across various sectors.
Hang Seng
0.2
55
29,919
Shanghai Com
0.3
11
3,307
News Analysis
IL&FS Transportation arm re-finances `883cr debt via NCDs
Advances / Declines
BSE
NSE
Detailed analysis on Pg2
Advances
1,571
1,021
Investor’s Ready Reckoner
Declines
1,224
784
Unchanged
198
45
Key Domestic & Global Indicators
Stock Watch: Latest investment recommendations on 150+ stocks
Refer Pg5 onwards
Volumes (` Cr)
BSE
4,865
Top Picks
NSE
34,503
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
Blue Star
Capital Goods Accumulate
813
867
6.6
Net Inflows (` Cr)
Net
Mtd
Ytd
Dewan Housing Finance
Financials
Buy
583
712
22.2
FII
1,254
(6,579)
51,053
Asian Granito
Other
Accumulate
576
639
10.9
Navkar Corporation
Other
Buy
188
265
41.1
*MFs
1,012
6,114 1,16,352
KEI Industries
Capital Goods
Buy
377
436
15.8
More Top Picks on Pg4
Top Gainers
Price (`)
Chg (%)
Unitech
10
18.1
Key Upcoming Events
Previous
Consensus
Rcom
36
17.0
Date
Region
Event Description
Reading
Expectations
Jpassociat
26
12.1
Jan02
Germany PMI Manufacturing
63.30
63.30
Rpower
50
11.9
Jan02
Germany Unemployment change (000's)
(18.00)
(13.00)
Jan03
UK
PMI Manufacturing
58.20
57.90
Gmrinfra
22
10.9
Jan03
US
Initial Jobless claims
245.00
Jan04
US
Unnemployment rate
4.10
4.10
Top Losers
Price (`)
Chg (%)
More Events on Pg7
Infibeam
141
(14.2)
Gdl
235
(3.4)
Redington
175
(3.4)
Centralbk
73
(3.0)
Rtnpower
8
(2.7)
As on December 29 2017
Market Outlook
January 01, 2018
News Analysis
IL&FS Transportation arm re-finances `883cr debt via NCDs
IL&FS Transportation Networks its joint venture firm, Jorabat Shillong Expressway
Ltd, has re-financed debts amounting to
`883cr through issuance of non-
convertible debentures (NCDs).
Jorabat Shillong Expressway Ltd, a joint venture mandated for development of a
section of NH-40 from 0.00 km to 61.80 km in Assam and Meghalaya has re-
financed senior and subordinated debt by the issue of non-convertible debentures
to the extent of `883cr.
The company added that the NCDs carry a weighted average coupon rate of 8.34
per cent as against 11.30 per annual resulting in savings of approximately 2.96
per cent in interest cost. The project was completed on January 28, 2016, and is
entitled to receive from NHAI a semi-annual annuity of `72.51cr for a period of
15 years effective July 28, 2016.
Economic and Political News
RBI refused to accept bids for Rs 11,000 crore worth of bonds in the final
auction of this calendar year.
Microfinance sector is bracing to write off close to Rs 5,000cr as bad loans,
on account of debt waiver schemes by state governments.
Corporate News
India Inc to step up investments, increase hiring in 2018
Government seeking action against Unitech.
Market Outlook
January 01, 2018
Top Picks HHHHH
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
Strong growth in domestic business due to its leade`hip
in acute therapeutic segment. Alkem expects to launch
Alkem Laboratories
26,327
2,202
2,341
6.3
more products in USA, which bodes for its international
business.
We expect the company would report strong profitability
Asian Granito
1,734
576
639
10.9
owing to better product mix, higher B2C sales and
amalgamation synergy.
Favorable outlook for the AC industry to augur well for
Cooling products business which is out pacing the
Blue Star
7,799
813
867
6.6
market growth. EMPPAC division's profitability to
improve once operating environment turns around.
With a focus on the low and medium income (LMI)
consumer segment, the company has increased its
Dewan Housing Finance
18,274
583
712
22.2
presence in tier-II & III cities where the growth
opportunity is immense.
Loan growth is likely to pick up after a sluggish FY17.
Lower credit cost will help in strong bottom-line growth.
Karur Vysya Bank
9,035
125
180
43.8
Increasing share of CASA will help in NIM
improvement.
High order book execution in EPC segment, rising B2C
KEI Industries
2,951
377
436
15.8
sales and higher exports to boost the revenues and
profitability
Expected to benefit from the lower capex requirement
Music Broadcast
2,179
382
434
13.6
and 15 year long radio broadcast licensing.
Massive capacity expansion along with rail advantage
Navkar Corporation
2,826
188
265
41.1
at ICD as well CFS augur well for the company
Strong brands and distribution network would boost
Siyaram Silk Mills
3,481
743
813
9.5
growth going ahead. Stock currently trades at an
inexpensive valuation.
Market leadership in Hindi news genre and no.
2
viewership ranking in English news genre, exit from the
TV Today Network
2,571
431
500
16.0
radio business, and anticipated growth in ad spends by
corporate to benefit the stock.
After GST, the company is expected to see higher
volumes along with improving product mix. The Gujarat
Maruti Suzuki
2,93,965
9,731
10,619
9.1
plant will also enable higher operating leverage which
will be margin accretive.
We expect loan book to grow at 24.3% over next two
GIC Housing
2,492
463
655
41.6
year; change in borrowing mix will help in NIM
improvement
We expect CPIL to report net Revenue/PAT CAGR of
~17%/16% over FY2017-20E mainly due to healthy
7,537
339
400
17.9
growth in plywood & lamination business, forayed into
Century Plyboards India
MDF & Particle boards on back of strong brand &
distribution network.
We expect sales/PAT to grow at 13.5%/20% over next
LT Foods
2,914
91
96
5.4
two years on the back of strong distribution network &
addition of new products in portfolio.
We expect sales/PAT to grow at 13%/16% over next two
years on the back of strong healthy demand in writing
Ruchira Papers
443
198
244
23.5
& printing paper and Kraft paper. Further, China had
banned making paper from waste pulp which would
benefit Indian paper companies.
Source: Company, Angel Research
Market Outlook
January 01, 2018
Key Upcoming Events
Global economic events release calendar
Bloomberg Data
Date
Time Country
Event Description
Unit
Period
Last Reported
Estimated
Jan 02, 2018
2:25 PMGermany
PMI Manufacturing
Value
Dec F
63.30
63.30
2:25 PMGermany
Unemployment change (000's)
Thousands
Dec
(18.00)
(13.00)
Jan 03, 2018
3:00 PMUK
PMI Manufacturing
Value
Dec
58.20
57.90
Jan 04, 2018
7:00 PMUS
Initial Jobless claims
Thousands
Dec 30
245.00
7:00 PMUS
Unnemployment rate
%
Dec
4.10
4.10
Jan 05, 2018
2:25 PMGermany
PMI Services
Value
Dec F
55.80
55.80
7:00 PMUS
Change in Nonfarm payrolls
Thousands
Dec
228.00
189.00
Jan 08, 2018
3:30 PMEuro Zone
Euro-Zone Consumer Confidence
Value
Dec F
0.50
Jan 10, 2018
3:00 PMUK
Industrial Production (YoY)
% Change
Nov
3.60
India
Imports YoY%
% Change
Dec
19.60
India
Exports YoY%
% Change
Dec
30.60
7:00 AMChina
Consumer Price Index (YoY)
% Change
Dec
1.70
1.90
Jan 11, 2018
US
Producer Price Index (mom)
% Change
Dec
1.40
Jan 12, 2018
China
Exports YoY%
% Change
Dec
12.30
7:00 PMUS
Consumer price index (mom)
% Change
Dec
0.40
Jan 15, 2018
12:00 PMIndia
Monthly Wholesale Prices YoY%
% Change
Dec
3.93
Jan 16, 2018
3:30 PMEuro Zone
Euro-Zone CPI (YoY)
%
Dec F
1.50
Jan 17, 2018
3:00 PMUK
CPI (YoY)
% Change
Dec
3.10
7:45 PMUS
Industrial Production
%
Dec
0.20
Jan 18, 2018
7:00 PMUS
Housing Starts
Thousands
Dec
1,297.00
7:00 PMUS
Building permits
Thousands
Dec
1,303.00
7:30 AMChina
Industrial Production (YoY)
% Change
Dec
6.10
7:30 AMChina
Real GDP (YoY)
% Change
4Q
6.80
Jan 24, 2018
8:30 PMUS
Existing home sales
Million
Dec
5.81
Source: Bloomberg, Angel Research
Market Outlook
January 01, 2018
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
10.0
5.0
4.5
9.1
4.4
4.1
9.0
8.0
7.9
4.0
3.5
7.6
7.5
3.2
8.0
7.3
7.2
2.9
7.0
3.0
2.4
7.0
6.3
2.2
6.1
6.1
5.7
2.0
6.0
1.2
1.0
5.0
1.0
4.0
-
3.0
(1.0)
(0.3)
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
(%)
6.0
54.0
4.9
52.0
5.0
3.9
50.0
4.0
3.7
3.6
3.4
3.3
3.3
3.2
3.0
48.0
3.0
2.4
2.2
46.0
2.0
1.5
44.0
1.0
42.0
40.0
-
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Source: MOSPI, Angel Research
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
6.50
50.0
6.00
40.0
5.50
30.0
5.00
20.0
4.50
10.0
4.00
0.0
3.50
(10.0)
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
Market Outlook
January 01, 2018
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
6.9
7.0
5.8
6.0
5.3
5.0
5.0
1.1
3.7
4.0
2.5
3.0
2.2
1.8
2.0
1.5
1.4
0.8
1.0
0.3
-
Source: Bloomberg, Angel Research
Exhibit 2: 2017 GDP Growth projection by IMF (%, yoy) across select developing and developed countries
(%)
6.7
6.8
7.0
6.0
5.4
5.2
5.0
3.7
4.0
3.0
1.8
2.2
2.0
1.7
1.6
2.0
0.7
1.5
0.7
1.0
-
Source: IMF, Angel Research
Exhibit 3: One year forward P-E ratio across select developing and developed countries
(x)
25.0
20.0
15.0
10.0
5.0
-
Source: IMF, Angel Research
Market Outlook
January 01, 2018
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
76,402
3.2
1.3
33.4
Russia
Micex
2,103
(1.1)
1.1
(8.1)
India
Nifty
10,478
1.5
8.2
31.1
China
Shanghai Composite
3,296
(0.9)
(1.0)
5.4
South Africa
Top 40
52,071
(2.4)
7.6
20.3
Mexico
Mexbol
48,862
1.9
(3.0)
6.4
Indonesia
LQ45
1,070
6.0
10.6
21.2
Malaysia
KLCI
1,779
3.6
0.8
8.9
Thailand
SET 50
1,129
4.7
6.3
20.7
USA
Dow Jones
24,838
5.3
11.2
25.3
UK
FTSE
7,623
2.9
4.2
6.7
Japan
Nikkei
22,784
1.3
12.1
17.3
Germany
DAX
12,980
(0.5)
2.7
11.6
France
CAC
5,339
(0.5)
0.7
8.8
Source: Bloomberg, Angel Research p68in4
Stock Watch
January 01, 2018
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 )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Agri / Agri Chemical
Rallis
Sell
269
209
5,226
1,873
2,099
15.0
15.0
9.5
10.5
28.3
25.6
4.3
3.9
15.8
16.0
2.6
2.4
United Phosphorus
Accumulate
762
820
38,711
18,922
21,949
18.0
18.5
36.2
45.6
21.0
16.7
4.4
3.6
22.7
23.8
2.2
1.8
Auto & Auto Ancillary
Ashok Leyland
Accumulate
119
127
34,906
23,339
27,240
10.1
10.8
4.7
6.2
25.7
19.2
5.1
4.5
20.0
23.6
1.5
1.2
Bajaj Auto
Neutral
3,323
-
96,162
23,936
27,955
19.5
20.1
142.7
167.3
23.3
19.9
5.1
4.5
21.8
22.8
3.6
3.0
Bharat Forge
Buy
732
875
34,076
7,637
8,755
21.7
23.2
36.1
47.3
20.3
15.5
3.6
3.1
18.5
20.8
4.3
3.7
Eicher Motors
Neutral
30,341
-
82,638
19,043
22,837
19.5
19.9
835.4
1,019.0
36.3
29.8
13.6
10.5
40.9
37.8
4.2
3.5
Gabriel India
Neutral
199
-
2,861
1,782
2,033
9.7
10.2
7.1
8.9
28.1
22.5
5.7
4.8
21.0
22.2
1.6
1.3
Hero Motocorp
Accumulate
3,786
4,129
75,615
32,239
36,878
16.0
15.6
184.4
206.5
20.5
18.3
6.5
5.7
31.3
30.7
2.1
1.8
Jamna Auto Industries Neutral
81
-
3,230
1,441
1,662
14.4
14.8
13.9
17.6
5.8
4.6
1.6
1.3
30.0
31.0
2.2
1.9
Mahindra and Mahindra Neutral
751
-
93,370
46,971
53,816
13.6
14.0
67.7
79.8
11.1
9.4
1.6
1.4
15.0
15.9
1.9
1.6
Maruti
Accumulate
9,731
10,619
293,965
79,470
95,208
15.9
17.2
281.7
363.8
34.5
26.8
7.5
6.1
21.7
22.8
3.4
2.7
Minda Industries
Neutral
1,286
-
11,117
4,328
5,084
11.0
11.9
27.3
36.4
47.2
35.3
10.0
7.8
23.1
25.6
2.6
2.3
Motherson Sumi
Neutral
379
-
79,744
55,937
64,445
10.8
11.4
16.9
21.1
22.4
18.0
5.0
5.1
25.2
25.4
1.5
1.2
Tata Motors
Neutral
431
-
124,502
303,167
343,649
11.8
13.8
33.1
54.7
13.0
7.9
2.1
1.7
16.9
23.0
0.5
0.4
TVS Motor
Neutral
771
-
36,643
13,992
16,216
9.0
9.4
17.1
20.3
45.2
38.0
12.0
9.3
29.7
27.7
2.6
2.2
Amara Raja Batteries
Neutral
841
-
14,358
6,140
7,122
14.3
15.6
29.3
39.0
28.7
21.6
4.9
4.1
17.1
19.0
2.3
2.0
Exide Industries
Neutral
223
-
18,942
8,689
9,854
15.1
15.2
9.7
11.0
23.1
20.3
4.1
3.6
15.7
16.1
1.9
1.7
Apollo Tyres
Neutral
269
-
15,377
15,739
17,326
13.3
14.6
20.4
26.7
13.2
10.1
1.6
1.4
20.4
26.7
1.2
1.1
Ceat
Neutral
1,951
-
7,891
6,661
7,717
11.1
14.2
116.2
178.2
16.8
11.0
2.9
2.4
15.2
21.3
1.3
1.1
JK Tyres
Neutral
147
-
3,335
8,318
9,239
16.2
16.4
21.0
27.5
7.0
5.4
1.4
1.1
19.1
20.4
0.8
0.7
Swaraj Engines
Neutral
2,055
-
2,552
788
889
16.4
16.5
71.6
81.0
28.7
25.4
8.3
7.7
29.6
31.0
2.9
2.5
Subros
Neutral
309
-
1,856
1,855
2,135
11.6
11.8
10.3
14.7
30.2
21.1
4.6
3.9
15.8
19.1
1.2
1.0
Capital Goods
BEML
Neutral
1,618
-
6,737
4,286
5,194
7.1
8.2
42.9
58.1
37.7
27.8
3.1
2.8
7.6
8.7
1.6
1.3
Bharat Electronics
Neutral
182
-
44,754
10,258
12,470
19.6
19.5
7.3
8.6
25.0
21.2
0.5
0.4
20.4
21.9
3.9
3.1
Voltas
Neutral
656
-
21,696
6,778
8,004
9.6
11.0
17.1
22.4
38.4
29.3
9.2
8.0
17.7
19.8
2.9
2.4
BHEL
Neutral
93
-
33,997
33,200
39,167
6.8
9.5
6.2
11.2
14.9
8.3
0.7
0.7
4.6
8.0
0.6
0.5
Blue Star
Accumulate
813
867
7,799
5,220
6,207
6.3
6.6
16.8
22.3
48.4
36.5
9.6
8.5
19.9
23.3
1.5
1.2
CG Power and Industrial
Neutral
93
-
5,816
6,555
7,292
7.5
7.5
-
0.8
9,280.0
116.0
1.4
1.5
0.1
1.2
1.0
0.9
Solutions
Greaves Cotton
Neutral
137
-
3,347
1,778
1,993
14.7
15.1
8.1
9.1
16.9
15.1
3.8
3.6
21.8
23.6
1.6
1.5
Stock Watch
January 01, 2018
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 )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Capital Goods
KEC International
Neutral
384
-
9,872
9,779
11,113
9.4
9.8
14.2
18.2
27.0
21.1
5.2
4.3
21.1
22.1
1.3
1.1
KEI Industries
Buy
377
436
2,951
3,001
3,391
10.0
10.0
13.0
16.1
28.9
23.4
5.3
4.4
18.2
18.7
1.2
1.0
Thermax
Neutral
1,211
-
14,433
4,125
4,747
10.3
10.8
26.7
31.5
45.4
38.5
5.1
4.6
11.2
12.0
3.2
2.8
VATech Wabag
Accumulate
611
681
3,337
3,867
4,126
9.6
10.0
34.9
39.8
17.5
15.3
2.9
2.5
17.7
17.5
0.9
0.8
Cement
ACC
Neutral
1,758
-
33,011
12,255
13,350
13.5
14.3
58.0
66.2
30.3
26.6
3.6
3.4
11.5
12.2
2.7
2.4
Ambuja Cements
Neutral
271
-
53,851
10,250
11,450
17.5
19.0
7.2
8.3
37.7
32.7
2.7
2.6
7.0
7.8
5.0
4.4
India Cements
Neutral
183
-
5,627
6,135
6,750
14.8
15.2
8.5
11.5
21.5
15.9
1.1
1.0
4.8
6.2
1.3
1.1
JK Cement
Neutral
1,113
-
7,781
4,150
4,775
19.2
20.0
49.0
63.5
22.7
17.5
3.6
3.1
17.0
18.5
2.3
2.0
J K Lakshmi Cement
Neutral
441
-
5,190
3,422
3,757
15.5
17.0
13.5
23.2
32.7
19.0
3.4
2.9
10.8
15.5
1.9
1.7
Orient Cement
Neutral
171
-
3,502
2,215
3,233
16.8
17.0
5.9
6.9
29.0
24.8
2.2
2.1
10.8
10.1
2.6
1.7
Prism Cement
Buy
113
131
5,685
5,155
5,616
7.0
7.0
2.0
3.0
56.5
37.7
5.2
4.5
10.0
13.8
1.4
1.2
UltraTech Cement
Neutral
4,321
-
118,628
28,250
35,150
20.2
23.5
77.5
122.2
55.8
35.4
4.7
4.3
9.6
14.8
4.7
3.7
Construction
KNR Constructions
Neutral
324
-
4,560
1,846
2,203
14.5
14.5
12.1
13.7
26.8
23.8
1.5
1.3
17.5
16.7
2.5
2.1
Larsen & Toubro
Neutral
1,257
-
176,103
95,787
109,476
10.2
11.6
44.5
50.8
28.3
24.8
3.5
3.3
12.9
13.1
2.4
2.1
Gujarat Pipavav Port
Neutral
137
-
6,613
739
842
61.6
62.7
5.1
6.2
26.8
22.2
3.3
3.3
12.7
14.9
8.4
7.3
PNC Infratech
Neutral
203
-
5,213
2,040
2,935
13.0
13.0
6.4
9.0
31.8
22.6
0.8
0.7
9.7
12.2
2.6
1.8
Simplex Infra
Neutral
583
-
2,885
6,012
6,619
11.6
11.7
21.1
31.0
27.7
18.8
1.9
1.8
6.5
8.6
1.0
0.9
Sadbhav Engineering
Neutral
426
-
7,307
3,823
4,426
10.7
10.8
10.3
11.8
41.4
36.1
5.0
4.4
10.1
10.5
2.2
1.9
NBCC
Neutral
247
-
22,221
9,099
12,706
6.4
6.4
7.3
9.6
33.9
25.8
1.5
1.2
27.5
30.5
2.3
1.7
MEP Infra
Neutral
93
-
1,509
2,403
2,910
18.3
16.8
2.4
6.1
39.5
15.3
15.0
10.1
35.2
55.8
1.8
1.5
SIPL
Neutral
147
-
5,192
2,060
2,390
46.8
47.7
(5.8)
(3.1)
5.5
6.3
(14.2)
(2.3)
7.3
6.8
Engineers India
Neutral
199
-
13,430
1,795
2,611
21.1
22.4
5.9
8.1
33.8
24.6
2.4
2.3
12.9
16.1
5.9
3.9
Financials
Axis Bank
Neutral
562
-
144,193
32,558
35,843
3.5
3.2
27.8
41.0
20.2
13.7
2.2
1.9
11.4
14.9
-
-
Bank of Baroda
Neutral
161
-
36,982
22,533
26,079
2.4
2.4
12.0
20.9
13.4
7.7
0.9
0.8
6.6
11.0
-
-
Canara Bank
Neutral
361
-
21,556
17,925
20,235
2.0
2.1
18.5
36.5
19.5
9.9
0.7
0.7
3.4
6.2
-
-
Can Fin Homes
Neutral
473
-
6,294
586
741
3.5
3.5
107.8
141.0
4.4
3.4
1.0
0.8
24.1
25.6
-
-
Cholamandalam Inv. &
Neutral
1,300
-
20,312
2,826
3,307
6.3
6.3
53.7
64.6
24.2
20.1
4.1
3.5
18.3
18.9
-
-
Fin. Co.
Dewan Housing Finance Buy
583
712
18,274
2,676
3,383
2.4
2.7
37.4
49.7
15.6
11.7
2.0
1.8
13.8
16.2
-
-
Equitas Holdings
Buy
148
235
5,030
1,125
1,380
9.6
9.8
1.5
6.0
98.7
24.7
2.2
2.1
2.4
8.2
-
-
Stock Watch
January 01, 2018
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 )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Financials
Federal Bank
Accumulate
109
125
21,383
4,896
5,930
2.8
3.1
5.4
7.6
20.3
14.4
1.7
1.6
8.5
11.0
-
-
GIC Housing
Buy
463
655
2,492
376
477
3.6
3.7
33.0
40.0
14.0
11.6
2.5
2.1
20.0
23.0
-
-
HDFC Bank
Neutral
1,874
-
485,273
55,236
63,253
4.5
4.4
68.9
82.4
27.2
22.7
4.7
3.9
18.7
18.5
-
-
ICICI Bank
Neutral
314
-
201,653
42,361
51,378
3.6
3.9
18.4
25.7
17.1
12.2
1.9
1.8
11.3
15.0
-
-
Karur Vysya Bank
Buy
125
180
9,035
3,289
3,630
3.7
3.9
10.8
14.1
11.6
8.9
1.4
1.2
12.5
14.7
-
-
LIC Housing Finance
Accumulate
563
630
28,425
4,895
6,332
3.4
3.7
50.7
66.8
11.1
8.4
2.2
1.8
21.7
23.8
-
-
Punjab Natl.Bank
Neutral
172
-
41,599
23,708
25,758
2.1
2.1
5.9
16.4
29.2
10.5
0.9
0.8
3.0
8.3
-
-
RBL Bank
Neutral
509
-
21,247
2,309
2,888
2.6
2.5
16.4
19.1
31.1
26.7
3.9
3.5
13.3
13.8
-
-
Repco Home Finance
Buy
685
825
4,287
496
597
4.4
4.2
38.5
48.7
17.8
14.1
3.2
2.7
19.6
20.6
-
-
South Ind.Bank
Neutral
31
-
5,607
3,195
3,567
3.0
3.1
3.0
3.8
10.3
8.1
1.0
0.9
10.5
11.9
-
-
St Bk of India
Neutral
310
-
267,162
105,827
121,056
2.4
2.5
16.1
25.6
19.2
12.1
1.5
1.4
6.6
9.9
-
-
Union Bank
Neutral
144
-
12,353
14,650
16,225
2.3
2.3
23.1
32.5
6.3
4.4
0.5
0.4
7.1
9.2
-
-
Yes Bank
Neutral
315
-
72,421
11,088
13,138
3.0
2.9
84.0
99.3
3.8
3.2
0.6
0.5
16.3
16.8
-
-
FMCG
Akzo Nobel India
Neutral
1,836
-
8,803
3,164
3,607
13.8
13.7
58.6
67.9
31.3
27.0
7.7
6.8
24.5
25.1
2.6
2.3
Asian Paints
Neutral
1,158
-
111,066
17,603
20,615
18.6
18.6
2,128.9
2,543.3
0.5
0.5
11.5
9.7
28.0
28.9
6.1
5.1
Britannia
Neutral
4,716
-
56,617
9,690
11,278
14.8
15.4
84.0
101.0
56.1
46.7
20.5
16.3
40.6
39.0
5.8
5.0
Colgate
Neutral
1,096
-
29,799
4,420
5,074
24.9
25.3
28.6
32.8
38.3
33.4
15.1
12.2
43.8
40.5
6.5
5.6
Dabur India
Neutral
349
-
61,407
8,346
9,344
19.6
19.9
7.8
9.0
44.7
38.7
9.0
8.1
25.2
24.8
7.0
6.1
GlaxoSmith Con*
Neutral
6,557
-
27,576
5,072
5,760
18.2
18.4
176.3
199.2
37.2
32.9
7.9
7.1
21.2
21.7
4.8
4.1
Godrej Consumer
Neutral
999
-
68,082
10,171
11,682
20.8
21.5
21.7
27.1
46.1
36.9
10.4
8.9
22.3
23.4
6.8
5.9
HUL
Neutral
1,368
-
296,122
37,077
41,508
20.3
21.8
5,189.9
6,318.5
0.3
0.2
41.7
35.6
74.8
82.0
7.8
7.0
ITC
Neutral
263
-
320,708
44,588
49,853
37.0
37.3
9.6
11.0
27.4
23.9
6.7
6.4
25.1
27.3
6.7
5.9
Marico
Neutral
322
-
41,582
6,788
7,766
18.5
19.2
7.1
8.5
45.4
37.9
15.9
13.6
36.9
38.0
6.0
5.2
Nestle*
Neutral
7,845
-
75,638
10,083
11,182
20.0
20.9
119.7
141.3
65.5
55.5
231.0
211.1
36.7
39.8
7.2
6.4
Tata Global
Neutral
316
-
19,915
7,121
7,641
11.9
12.3
6.9
8.0
45.7
39.4
3.1
2.9
6.8
7.2
2.6
2.4
Procter & Gamble
Neutral
9,381
-
30,451
3,034
3,579
27.1
27.7
167.7
198.8
55.9
47.2
15.0
12.9
28.8
29.5
9.5
7.9
Hygiene
IT
HCL Tech^
Accumulate
891
1,014
127,095
50,009
54,608
22.1
22.1
62.8
67.6
14.2
13.2
3.2
2.7
22.4
20.6
2.2
1.9
Infosys
Accumulate
1,039
1,120
238,726
70,333
75,960
26.0
26.0
61.7
65.9
16.8
15.8
3.2
3.0
18.9
18.7
2.8
2.5
TCS
Reduce
2,700
2,442
516,934
123,384
134,488
26.1
26.1
133.2
143.7
20.3
18.8
5.6
5.2
27.6
27.8
3.9
3.5
Stock Watch
January 01, 2018
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 )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
IT
Tech Mahindra
Neutral
504
-
49,231
30,545
32,988
15.0
15.0
35.2
37.6
14.3
13.4
2.4
2.3
16.8
16.2
1.4
1.2
Wipro
Neutral
313
-
152,522
54,164
56,544
22.3
22.3
18.8
19.5
16.7
16.1
2.7
2.3
15.0
13.6
2.0
1.8
Media
D B Corp
Neutral
352
-
6,476
2,404
2,625
30.5
31.5
23.7
26.9
14.9
13.1
3.5
3.0
23.5
22.8
2.5
2.3
HT Media
Neutral
102
-
2,374
2,589
2,830
15.1
15.4
8.3
10.9
12.3
9.4
1.0
0.9
8.4
10.4
0.5
0.3
Jagran Prakashan
Buy
179
225
5,585
2,541
2,835
28.5
28.7
12.7
14.1
14.1
12.7
2.9
2.5
21.3
21.4
2.1
1.8
Sun TV Network
Neutral
991
-
39,034
3,238
3,789
51.9
55.1
30.9
38.0
32.1
26.1
9.1
8.0
30.0
31.0
11.6
9.8
Hindustan Media
Neutral
253
-
1,855
1,002
1,074
23.3
23.5
29.2
33.8
8.7
7.5
1.4
1.2
15.6
15.4
0.9
0.6
Ventures
TV Today Network
Buy
431
500
2,571
667
727
27.7
27.7
18.6
20.1
23.2
21.5
3.6
3.7
15.6
17.3
3.4
3.1
Music Broadcast Limited Accumulate
382
434
2,179
271
317
91.0
109.0
6.0
10.0
63.7
38.2
4.0
3.6
6.5
9.3
7.6
6.3
Metals & Mining
Coal India
Neutral
263
-
163,255
82,301
91,235
17.0
18.0
17.1
20.5
15.4
12.8
2.9
2.7
45.0
55.0
1.7
1.5
Hind. Zinc
Neutral
309
-
130,562
22,108
24,555
57.0
58.0
22.1
26.3
14.0
11.8
4.5
3.7
32.0
35.0
4.9
4.1
Hindalco
Neutral
274
-
61,443
102,350
105,355
13.5
14.5
21.5
24.5
12.7
11.2
1.8
1.5
15.0
15.2
1.2
1.1
JSW Steel
Neutral
270
-
65,192
64,500
68,245
21.1
21.5
20.1
21.2
13.4
12.7
2.5
2.1
-
-
1.7
1.7
NMDC
Neutral
138
-
43,630
10,209
11,450
47.0
48.0
11.1
12.1
12.4
11.4
1.7
1.6
-
-
3.8
3.4
SAIL
Neutral
92
-
38,059
54,100
63,555
3.0
10.0
(10.0)
1.5
61.4
1.2
1.2
-
-
1.7
1.5
Vedanta
Neutral
330
-
122,630
81,206
87,345
28.0
29.0
26.5
33.5
12.5
9.9
2.8
2.4
-
-
2.3
1.9
Tata Steel
Neutral
732
-
71,137
121,445
126,500
16.2
17.2
65.4
81.3
11.2
9.0
1.8
1.5
-
-
1.1
1.0
Oil & Gas
GAIL
Neutral
497
-
84,092
53,115
52,344
14.2
15.3
30.0
31.1
16.6
16.0
2.1
1.9
-
-
1.3
1.3
ONGC
Neutral
195
-
249,799
83,111
84,934
44.2
44.9
16.4
16.9
11.9
11.5
1.4
1.3
-
-
2.9
2.8
Indian Oil Corp
Neutral
388
-
188,603
396,116
432,560
8.5
8.8
40.1
42.2
9.7
9.2
1.7
1.5
-
-
0.6
0.6
Reliance Industries
Neutral
921
-
599,033
257,711
267,438
17.0
18.2
89.1
89.5
10.3
10.3
1.0
0.9
-
-
2.0
1.9
Pharmaceuticals
Alembic Pharma
Accumulate
531
600
10,013
3,346
3,915
19.6
19.2
21.0
23.9
25.3
22.2
4.5
3.8
19.1
18.4
3.0
2.6
Alkem Laboratories Ltd
Accumulate
2,202
2,341
26,327
6,320
7,341
17.5
19.8
72.7
96.6
30.3
22.8
5.4
4.5
16.7
18.7
4.1
3.5
Aurobindo Pharma
Buy
688
823
40,326
17,086
19,478
22.1
22.0
44.7
51.4
15.4
13.4
3.4
2.8
24.7
22.7
2.5
2.2
Aventis*
Neutral
4,714
-
10,858
2,411
2,698
18.8
18.8
151.6
163.9
31.1
28.8
4.8
3.9
25.4
27.5
4.1
3.4
Cadila Healthcare
Reduce
434
411
44,390
11,365
12,926
20.0
20.0
18.4
20.5
23.6
21.2
5.2
4.3
24.3
22.2
4.0
3.5
Cipla
Sell
607
462
48,872
16,163
18,711
16.6
16.9
20.7
24.3
29.3
25.0
3.5
3.1
12.6
13.1
3.2
2.7
Dr Reddy's
Sell
2,414
2,040
40,036
13,734
15,548
17.7
20.2
69.9
102.0
34.5
23.7
3.1
2.8
9.2
12.4
3.1
2.8
GSK Pharma*
Sell
2,481
2,000
21,014
2,968
3,324
13.8
15.9
37.8
46.3
65.6
53.6
11.5
12.6
16.7
22.4
6.9
6.3
Stock Watch
January 01, 2018
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 )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Pharmaceuticals
Indoco Remedies
Sell
280
136
2,578
1,114
1,297
9.9
13.9
5.6
11.4
50.0
24.5
3.8
3.4
7.7
14.5
2.6
2.2
Ipca labs
Neutral
598
-
7,541
3,256
3,647
14.1
17.1
16.2
25.4
36.9
23.5
2.9
2.6
8.0
11.5
2.4
2.1
Lupin
Buy
885
1,091
39,989
16,240
18,562
21.3
21.7
42.5
49.6
20.8
17.8
2.6
2.3
13.3
13.7
2.6
2.2
Natco Pharma
Accumulate
962
1,057
17,742
1,886
2,016
32.3
29.5
23.2
22.0
41.6
43.6
8.7
7.7
20.9
17.6
9.3
8.6
Sun Pharma
Accumulate
571
630
136,949
28,312
32,153
20.7
23.1
18.5
23.3
30.9
24.5
3.5
3.2
11.5
14.6
4.5
3.8
Syngene International
Accumulate
541
587
10,827
1,394
1,818
33.0
36.5
15.8
21.0
34.2
25.8
6.4
5.2
18.6
20.3
7.7
5.9
Power
Tata Power
Neutral
94
-
25,384
32,547
33,806
20.5
20.5
4.7
5.4
20.0
17.5
1.9
1.7
10.5
10.5
1.8
1.7
NTPC
Neutral
177
-
146,110
86,070
101,246
28.3
30.7
12.9
16.2
13.7
10.9
1.4
1.3
10.6
12.4
3.1
2.7
Power Grid
Accumulate
200
223
104,815
29,183
32,946
89.7
90.0
18.0
20.8
11.2
9.6
1.9
1.7
17.7
18.2
7.5
7.0
Real Estate
Prestige Estate
Neutral
317
-
11,895
4,607
5,146
21.0
22.2
7.9
9.8
40.2
32.4
2.5
2.3
10.3
12.0
3.8
3.4
MLIFE
Accumulate
456
522
2,342
487
590
12.3
17.8
21.0
31.2
21.7
14.6
1.1
1.1
5.2
7.4
3.5
2.9
Telecom
Bharti Airtel
Neutral
529
-
211,622
97,903
105,233
36.0
36.3
9.3
11.1
56.9
47.9
2.8
2.6
5.0
5.6
3.1
2.8
Idea Cellular
Neutral
108
-
39,033
35,012
37,689
27.1
27.7
(4.4)
(2.7)
1.7
1.8
(6.8)
(4.6)
2.4
2.2
Others
Abbott India
Neutral
5,509
-
11,707
3,244
3,723
14.9
16.1
167.5
209.4
32.9
26.3
7.3
6.1
23.7
24.8
3.3
2.8
Asian Granito
Accumulate
576
639
1,734
1,169
1,286
12.5
12.5
16.0
19.7
36.1
29.2
3.9
3.4
10.7
11.6
1.7
1.5
Bajaj Electricals
Neutral
497
-
5,062
4,646
5,301
6.7
7.6
16.1
22.3
30.9
22.3
5.0
4.3
16.4
19.2
1.1
1.0
Banco Products (India)
Neutral
260
-
1,859
1,530
1,695
13.2
12.7
19.0
20.0
13.7
13.0
2.2
1.9
0.2
0.2
1.1
125.9
Coffee Day Enterprises
Neutral
275
-
5,803
3,494
3,913
17.4
18.0
4.8
5.7
-
48.2
2.4
2.3
-
0.1
2.1
1.9
Ltd
Elecon Engineering
Neutral
103
-
1,155
171
201
15.0
16.2
36.0
43.0
2.9
2.4
0.2
0.2
0.1
0.1
6.1
5.2
Garware Wall Ropes
Neutral
961
-
2,102
928
1,003
15.2
15.2
39.4
43.2
24.4
22.3
4.0
3.4
16.5
15.4
2.1
1.9
Goodyear India*
Neutral
1,047
-
2,414
1,717
1,866
11.8
12.3
47.9
49.8
21.8
21.0
3.4
2.9
15.6
15.7
1.1
158.3
Hitachi
Neutral
2,674
-
7,272
2,355
2,715
10.3
10.8
49.0
60.9
54.6
43.9
12.8
10.1
0.2
0.2
3.1
2.7
HSIL
Neutral
504
-
3,647
2,240
2,670
14.6
15.0
17.0
22.0
29.7
22.9
2.4
2.3
0.1
0.1
1.8
1.5
Interglobe Aviation
Neutral
1,206
-
46,329
22,570
27,955
14.2
15.0
63.6
81.8
19.0
14.8
10.0
8.4
0.5
0.6
1.7
1.3
Jyothy Laboratories
Neutral
385
-
6,993
1,781
2,044
14.1
15.0
9.4
10.5
41.1
36.6
8.8
8.2
0.2
0.2
4.1
3.5
Linc Pen & Plastics
Neutral
361
-
533
420
462
9.3
9.3
15.3
17.1
23.6
21.1
4.0
4.1
16.9
19.5
1.3
1.2
M M Forgings
Neutral
1,172
-
1,415
542
642
20.1
21.0
41.6
56.8
28.2
20.6
3.9
3.3
0.1
0.2
3.0
2.6
Mirza International
Neutral
159
-
1,912
1,148
1,285
18.0
18.0
8.0
9.4
19.8
17.0
3.3
2.8
16.3
16.1
1.8
1.6
Navkar Corporation
Buy
188
265
2,826
561
617
41.5
41.5
11.5
12.7
16.3
14.8
1.7
1.5
10.5
10.4
5.7
5.0
Stock Watch
January 01, 2018
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 )
FY18E FY19E FY18E FY19E FY18E FY19E
FY18E FY19E
FY18E FY19E
FY18E FY19E
FY18E FY19E
Others
Nilkamal
Neutral
1,837
-
2,742
2,317
2,525
11.4
11.1
96.0
105.0
19.1
17.5
3.3
2.8
0.2
0.2
1.2
1.0
Parag Milk Foods
Neutral
298
-
2,508
1,987
2,379
7.6
9.0
12.4
18.3
24.0
16.3
3.4
3.0
8.2
13.2
1.4
1.2
Radico Khaitan
Neutral
294
-
3,917
1,811
1,992
13.2
13.2
8.1
8.8
36.3
33.4
3.7
4.0
10.1
12.0
2.5
2.3
Relaxo Footwears
Neutral
676
-
8,131
1,981
2,310
13.7
14.5
12.0
15.5
56.3
43.6
11.0
8.9
0.2
0.2
4.2
3.6
Siyaram Silk Mills
Accumulate
743
813
3,481
1,769
1,981
12.7
12.7
22.6
26.2
32.8
28.3
5.1
4.4
15.5
15.5
2.1
1.9
Styrolution ABS India* Neutral
1,066
-
1,875
1,800
1,980
8.0
8.1
42.0
46.2
25.4
23.1
2.8
2.5
0.1
0.1
1.2
1.1
Surya Roshni
Neutral
394
-
1,726
4,870
5,320
7.7
7.8
22.8
28.1
17.3
14.0
2.3
2.0
0.1
0.1
0.6
0.5
TVS Srichakra
Neutral
3,900
-
2,986
2,729
2,893
12.7
12.5
248.5
265.0
15.7
14.7
4.5
3.6
0.3
0.3
1.1
1.0
Visaka Industries
Neutral
653
-
1,037
1,104
1,214
12.1
12.6
31.0
37.9
21.1
17.3
2.6
2.3
0.1
0.1
1.2
1.0
VIP Industries
Accumulate
351
400
4,965
1,450
1,693
10.4
10.5
6.5
7.8
53.7
45.0
11.4
9.9
21.1
22.1
3.4
2.9
Navin Fluorine
Neutral
830
-
4,098
945
1,154
17.5
17.9
28.7
34.8
29.0
23.9
4.8
4.1
-
-
3.9
3.0
Century Plyboards India Buy
339
400
7,537
2,007
2,510
22.4
22.6
8.4
11.1
40.4
30.6
8.6
7.0
21.3
22.9
4.1
3.3
LT Foods
Accumulate
91
96
2,914
3,287
3,747
11.1
11.5
4.4
5.2
20.7
17.5
3.1
2.5
17.5
17.6
1.4
1.2
Ruchira Papers
Buy
198
244
443
470
532
15.6
15.6
16.5
19.0
12.0
10.4
2.4
2.0
20.0
19.2
1.1
1.0
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on December 29, 2017
Market Outlook
January 01, 2018
Research Team Tel: 022 - 39357800
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