Market Outlook
December 01, 2016
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian market is expected to open on a positive note tracking the SGX Nifty.
BSE Sensex
1.0
259
26,653
U.S. markets closed mixed Wednesday, as investors eyed a sharp rally in oil prices
Nifty
1.0
82
8,225
amid a batch of economic reports. The Dow Jones Industrial Average edged up
Mid Cap
1.1
132
12,499
0.01%, to 19,124. The S&P 500 fell 0.27%, to 2,199. The OPEC on Wednesday
Small Cap
1.3
156
12,330
decided to cut its oil output by 1.2 million barrels per day, setting the ceiling of oil
Bankex
2.2
459
21,316
production at
32.5 million barrels per day. The reduction is effective from
January 01, 2017, and is the cartel's first oil reduction since 2008. The reduction is
being coordinated with the non-OPEC country Russia, who promised to cut its
Global Indices
Chg (%)
(Pts)
(Close)
production by 300,000 barrels per day.
Dow Jones
0.0
2
19,124
U.K. markets strengthened on Wednesday, with a deal by OPEC to cut production
Nasdaq
(1.0)
(56)
5,324
prompting gains for energy shares. The FTSE 100 closed up 0.2% at 6,784 but
FTSE
0.2
12
6,784
backed off an intraday increase of 1.1% as basic material, consumer-services and
Nikkei
0.0
1
18,308
utility shares were pushed down.
Hang Seng
0.2
53
22,790
Indian markets rallied for the fourth consecutive session on Wednesday, with the
Shanghai Com
(1.0)
(33)
3,250
benchmark Sensex surging 259 points to end at a fresh two-week high of 26,652
driven by upbeat global cues on strengthening oil prices. Consumer durables,
Advances / Declines
BSE
NSE
banking, finance, capital goods, industrials and power sectors were the major
winners.
Advances
1,776
1,134
Declines
835
446
News Analysis
Unchanged
203
79
Tata Power cuts sale consideration for Arutmin mine in Indonesia to $246 mn
Detailed analysis on Pg2
Volumes (` Cr)
Investor’s Ready Reckoner
BSE
2,591
Key Domestic & Global Indicators
NSE
31,511
Stock Watch: Latest investment recommendations on 150+ stocks
Refer Pg5 onwards
Net Inflows (` Cr)
Net
Mtd
Ytd
FII
(1,367)
(16,724)
28,291
Top Picks
MFs
1,172
12,822
34,875
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
Amara Raja BatteriesAuto & Auto Ancill.
Buy
940
1,167
24.1
Top Gainers
Price (`)
Chg (%)
HCL Tech
IT
Buy
803
1,000
24.6
Welcorp
81
13.8
Asian Granito
Capital Goods
Buy
222
351
58.0
Jklakshmi
412
9.7
Equitas Holdings
Financials
Buy
161
235
46.3
Navkar Corporation Others
Buy
175
265
51.4
Aban
237
9.1
More Top Picks on Pg3
Balkrisind
994
7.9
Jubilant
705
6.9
Key Upcoming Events
Previous
Consensus
Date
Region
Event Description
Reading
Expectations
Top Losers
Price (`)
Chg (%)
Dec 1 US
Initial Jobless claims
251.00
253.00
Bergepaint
228
(5.3)
Dec 1 China
PMI Manufacturing
51.20
51.00
Dec 1 Germany PMI Manufacturing
54.40
54.40
Den
62
(5.1)
Dec 1 UK
PMI Manufacturing
54.30
54.40
Mfsl
534
(4.4)
Dec 2 US
Change in Nonfarm payrolls
161.00
180.00
Aloktext
3
(3.3)
Dec 2 US
Unemployment rate
4.90
4.90
Skfindia
1,226
(3.2)
More Events on Pg4
As on November 30, 2016
Market Outlook
December 01, 2016
News Analysis
Tata Power cuts sale consideration for Arutmin mine in
Indonesia to $246 mn
Tata Power has reduced the sale consideration for its stake in Indonesian coal
miner PT Arutmin to Bakrie Group after adjusting for some prior-period liabilities
and other changes. The revised overall sale consideration for Arutmin and related
infrastructure assets now stands at about $400 million from $510 million earlier.
The past liabilities include settlement of past claims with a mining contractor of
about $80 million after a court order and other statutory liabilities of about $50
million.
In 2014, Tata Power agreed to sell a 30% stake it held in PT Arutmin Indonesia
and its associated infrastructure assets, to the Bakrie Group for about
$510
million. An important step before the sale was restructuring the investment
companies, which has taken longer than earlier anticipated.
The sale consideration for PT Arutmin Indonesia is now revised to $246.64 million,
as per an exchange filing. The management indicated that they are waiting for
clearances from regulatory authorities for closure of the deal. The filing added that
the sale consideration for the related infrastructure companies has also been
revised to $154.28 million from the earlier value of $120 millions, pursuant to
closing adjustments relating to prior period. These considerations are expected to
be received in a phased manner over next few years, Tata Power said.
Economic and Political News
Q2 GDP growth at 7.3% but PM Modi's demonetisation clouds future outlook
Stressed bankers seek clarity on intent from RBI
OPEC Agrees to Cut Production in Drive to End Record Glut
Government, arms need to dilute over `1.26 lakh crore shares in eight
months
DIIs pump `18,000cr in November
Corporate News
JSW infra plans to sell 10 per cent stake: CEO
RBI may challenge legality of Tata-Docomo contract
Lower losses at Mundra positive for Tata Power
Market Outlook
December 01, 2016
Top Picks ★★★★★
Large Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
To outpace battery industry growth due to better
Amara Raja Batteries
15,867
929
1,167
25.6
technological products leading to market share gains in both
the automotive OEM and replacement segments.
The stock is trading at attractive valuations and is factoring
HCL Tech
1,13,658
806
1,000
24.1
all the bad news.
Back on the growth trend; expect a long term growth of 14%
Infosys
2,23,412
973
1,249
28.4
to be a US$20bn in FY2020.
Source: Company, Angel Research
Mid Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
We expect the company would report strong profitability
Asian Granito
668
222
351
58.0
owing to better product mix, higher B2C sales and
amalgamation synergy.
Among the top 4 players in the consumer durables segment.
Bajaj Electricals
2,249
223
274
22.9
Improved profitability backed by turn around in E&P segment.
Strong order book lends earnings visibility.
Favourable outlook for the AC industry to augur well for
Cooling products business which is out pacing the market
Blue Star
4,679
491
634
29.2
growth. EMPPAC division's profitability to improve once
operating environment turns around.
With a focus on the low and medium income (LMI) consumer
Dewan Housing Finance
8,029
257
350
36.5
segment, the company has increased its presence in tier-II &
III cities where the growth opportunity is immense.
Strong loan growth backed by diversified loan portfolio and
Equitas Holdings
5,388
161
235
46.3
adequate CAR. ROE & ROA likely to remain decent as risk of
dilution remains low. Attractive valuations considering growth.
Economic recovery to have favourable impact on advertising
& circulation revenue growth. Further, the acquisition of a
Jagran Prakashan
5,744
176
225
28.0
radio business (Radio City) would also boost the company's
revenue growth.
Speedier execution and speedier sales, strong revenue visibilty
Mahindra Lifespace
1,547
377
522
38.5
in short-to-long run, attractive valuations
We expect the company to report strong growth on back of
healthy growth in domestic branded sales (owing to
Mirza International
973
81
107
32.3
aggressive ad spend and addition in the number of EBOs &
multi-brand outlets [MBOs]) and healthy export revenues.
Massive capacity expansion along with rail advantage at ICD
Navkar Corporation
2,496
175
265
51.4
as well CFS augurs well for the company.
Strong brands and distribution network would boost growth
Siyaram Silk Mills
1,172
1,250
1,605
28.4
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 radio business,
TV Today Network
1,882
315
385
22.0
and anticipated growth in ad spends by corporate to benefit
the stock.
Source: Company, Angel Research
Market Outlook
December 01, 2016
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
9.0
3.0
8.3
2.2
7.9
1.9
7.8
8.0
7.5
7.5
7.6
2.0
1.3
7.2
7.1
0.7
6.6
6.7
1.0
0.3
7.0
6.4
5.8
-
6.0
(1.0)
5.0
(0.9)
(0.7)
(2.0)
(1.3)
(1.6)
4.0
(3.0)
(2.5)
3.0
(4.0)
(3.4)
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
(%)
55.0
7.0
6.1
5.7
5.8
5.8
54.0
6.0
5.4
5.6
5.5
5.3
5.1
53.0
4.8
5.0
4.4
4.2
52.0
4.0
51.0
3.0
50.0
49.0
2.0
48.0
1.0
47.0
-
46.0
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
c
(%)
Repo rate
Reverse Repo rate
CRR
7.00
(%)
Exports yoy growth
Imports yoy growth
15.0
6.50
10.0
6.00
5.0
5.50
0.0
5.00
(5.0)
(10.0)
4.50
(15.0)
4.00
(20.0)
3.50
(25.0)
3.00
(30.0)
(35.0)
Source: RBI, Angel Research
Source: Bloomberg, Angel Research
Market Outlook
December 01, 2016
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
6.7
6.0
5.3
0.6
5.0
4.3
4.0
3.2
2.3
1.6
1.5
2.0
1.1
0.9
-
(2.0)
(0.4)
(4.0)
(3.8)
(6.0)
Source: Bloomberg, Angel Research
Exhibit 2: 2016 GDP Growth projection by IMF (%, yoy) across select developing and developed countries
(%)
10.0
7.6
8.0
6.6
6.0
4.9
4.3
4.0
3.2
1.8
1.7
1.6
1.3
2.0
(0.8)
0.5
(3.3)
0.1
-
(2.0)
(4.0)
Source: IMF, Angel Research
Exhibit 3: One year forward P-E ratio across select developing and developed countries
(x)
20.0
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
-
Source: IMF, Angel Research
Market Outlook
December 01, 2016
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
61,906
(3.6)
7.3
32.1
Russia
Micex
2,105
6.2
6.8
18.9
India
Nifty
8,225
(4.8)
(4.3)
4.8
China
Shanghai Composite
3,250
4.7
5.9
(9.5)
South Africa
Top 40
43,691
(0.7)
(5.4)
(5.7)
Mexico
Mexbol
45,316
(5.8)
(4.8)
4.4
Indonesia
LQ45
857
(6.1)
(5.1)
11.4
Malaysia
KLCI
1,619
(3.2)
(3.8)
(3.5)
Thailand
SET 50
943
0.7
(4.1)
6.1
USA
Dow Jones
19,124
5.3
3.6
7.9
UK
FTSE
6,784
(2.5)
0.6
8.1
Japan
Nikkei
18,308
5.6
10.6
(7.8)
Germany
DAX
10,640
(0.2)
0.4
(1.4)
France
CAC
4,578
1.5
3.1
(1.3)
Source: Bloomberg, Angel Research
Stock Watch
December 01, 2016
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
Neutral
204
-
3,967
1,937
2,164
13.3
14.3
9.0
11.0
22.7
18.6
4.0
3.5
18.4
19.8
2.1
1.8
United Phosphorus
Accumulate
633
684
32,111
15,176
17,604
18.5
18.5
37.4
44.6
16.9
14.2
3.3
2.8
21.4
21.2
2.2
1.9
Auto & Auto Ancillary
Ashok Leyland
Buy
80
111
22,639
22,407
26,022
10.6
10.6
5.2
6.4
15.3
12.4
3.5
2.9
23.6
24.7
1.1
0.9
Bajaj Auto
Neutral
2,684
-
77,659
25,093
27,891
19.5
19.2
143.9
162.5
18.7
16.5
5.2
4.5
30.3
29.4
2.8
2.5
Bharat Forge
Neutral
905
-
21,059
7,726
8,713
20.5
21.2
35.3
42.7
25.6
21.2
4.7
4.3
18.9
20.1
2.8
2.4
Eicher Motors
Neutral
21,620
-
58,722
16,583
20,447
17.5
18.0
598.0
745.2
36.2
29.0
12.4
9.4
41.2
38.3
3.4
2.7
Gabriel India
Buy
110
130
1,579
1,544
1,715
9.0
9.3
5.4
6.3
20.4
17.4
3.8
3.4
18.9
19.5
1.0
0.9
Hero Motocorp
Accumulate
3,169
3,541
63,281
30,958
34,139
15.7
15.7
193.6
208.3
16.4
15.2
6.4
5.3
34.2
30.5
1.9
1.7
Jamna Auto Industries Neutral
178
-
1,423
1,486
1,620
9.8
9.9
15.0
17.2
11.9
10.4
2.6
2.2
21.8
21.3
1.0
0.9
L G Balakrishnan & Bros Neutral
615
-
965
1,302
1,432
11.6
11.9
43.7
53.0
14.1
11.6
2.0
1.8
13.8
14.2
0.8
0.8
Mahindra and Mahindra Neutral
1,186
-
73,658
46,534
53,077
11.6
11.7
67.3
78.1
17.6
15.2
2.9
2.5
15.4
15.8
1.6
1.3
Maruti
Accumulate
5,263
6,006
158,998
68,057
82,958
15.8
15.5
212.1
261.2
24.8
20.2
4.9
4.1
19.8
20.3
2.0
1.6
Minda Industries
Neutral
307
-
2,431
2,728
3,042
9.0
9.1
68.2
86.2
4.5
3.6
1.0
0.8
23.8
24.3
1.0
0.8
Motherson Sumi
Neutral
309
-
43,414
45,896
53,687
7.8
8.3
13.0
16.1
23.7
19.2
7.7
6.1
34.7
35.4
1.0
0.9
Rane Brake Lining
Neutral
974
-
771
511
562
11.3
11.5
28.1
30.9
34.7
31.5
5.3
4.8
15.3
15.0
1.6
1.5
Setco Automotive
Neutral
39
-
518
741
837
13.0
13.0
15.2
17.0
2.6
2.3
0.4
0.4
15.8
16.3
1.1
1.0
Tata Motors
Neutral
459
-
132,624
300,209
338,549
8.9
8.4
42.7
54.3
10.8
8.5
1.7
1.5
15.6
17.2
0.6
0.5
TVS Motor
Neutral
372
-
17,676
13,390
15,948
6.9
7.1
12.8
16.5
29.2
22.5
7.3
5.7
26.3
27.2
1.4
1.1
Amara Raja Batteries
Buy
940
1,167
16,060
5,504
6,605
18.4
19.8
33.4
40.9
28.2
23.0
6.2
5.1
22.1
22.0
2.9
2.4
Exide Industries
Neutral
181
-
15,389
7,439
8,307
15.0
15.0
8.1
9.3
22.4
19.5
3.1
2.8
14.3
16.7
1.7
1.5
Apollo Tyres
Buy
191
235
9,725
12,877
14,504
14.3
13.9
21.4
23.0
8.9
8.3
1.4
1.2
16.4
15.2
0.9
0.9
Ceat
Accumulate
1,280
1,450
5,176
7,524
8,624
13.0
12.7
131.1
144.3
9.8
8.9
1.8
1.5
19.8
18.6
0.8
0.7
JK Tyres
Neutral
122
-
2,764
7,455
8,056
15.0
15.0
21.8
24.5
5.6
5.0
1.2
1.0
22.8
21.3
0.5
0.4
Swaraj Engines
Neutral
1,327
-
1,648
660
810
15.2
16.4
54.5
72.8
24.4
18.2
7.6
6.9
31.5
39.2
2.3
1.9
Subros
Neutral
172
-
1,032
1,488
1,681
11.7
11.9
6.4
7.2
26.9
24.0
2.8
2.6
10.8
11.4
0.9
0.8
Indag Rubber
Neutral
186
-
487
286
326
19.8
16.8
11.7
13.3
15.9
13.9
2.7
2.5
17.8
17.1
1.4
1.2
Capital Goods
ACE
Neutral
50
-
498
709
814
4.1
4.6
1.4
2.1
35.9
24.0
1.5
1.4
4.4
6.0
0.9
0.8
BEML
Neutral
842
-
3,507
3,451
4,055
6.3
9.2
31.4
57.9
26.8
14.5
1.6
1.5
6.3
10.9
1.1
1.0
Bharat Electronics
Neutral
1,439
-
32,143
8,137
9,169
16.8
17.2
58.7
62.5
24.5
23.0
3.8
3.4
44.6
46.3
2.9
2.6
Stock Watch
December 01, 2016
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
Buy
315
407
10,406
6,511
7,514
7.9
8.7
12.9
16.3
24.4
19.3
4.4
3.8
16.7
18.5
1.4
1.1
BGR Energy
Neutral
112
-
807
16,567
33,848
6.0
5.6
7.8
5.9
14.3
19.0
0.8
0.8
4.7
4.2
0.2
0.1
BHEL
Neutral
130
-
31,904
28,797
34,742
-
2.8
2.3
6.9
56.7
18.9
1.0
0.9
1.3
4.8
0.8
0.5
Blue Star
Buy
491
634
4,679
4,283
5,077
5.9
7.3
14.9
22.1
33.0
22.2
6.4
5.4
20.4
26.4
1.1
1.0
Crompton Greaves
Neutral
77
-
4,832
5,777
6,120
5.9
7.0
3.3
4.5
23.4
17.1
1.0
1.0
4.4
5.9
0.8
0.7
Greaves Cotton
Neutral
126
-
3,079
1,755
1,881
16.8
16.9
7.8
8.5
16.2
14.8
3.2
3.0
20.6
20.9
1.4
1.3
Inox Wind
Neutral
191
-
4,232
5,605
6,267
15.7
16.4
24.8
30.0
7.7
6.4
2.1
1.6
25.9
24.4
0.8
0.7
KEC International
Neutral
146
-
3,741
9,294
10,186
7.9
8.1
9.9
11.9
14.7
12.2
2.2
1.9
15.6
16.3
0.6
0.6
Thermax
Neutral
843
-
10,050
5,421
5,940
7.3
7.3
25.7
30.2
32.8
27.9
4.0
3.6
12.2
13.1
1.7
1.6
VATech Wabag
Buy
496
681
2,706
3,136
3,845
8.9
9.1
26.0
35.9
19.1
13.8
2.4
2.0
13.4
15.9
0.8
0.6
Cement
ACC
Neutral
1,343
-
25,212
11,225
13,172
13.2
16.9
44.5
75.5
30.2
17.8
2.9
2.6
11.2
14.2
2.3
1.9
Ambuja Cements
Neutral
210
-
41,778
9,350
10,979
18.2
22.5
5.8
9.5
36.3
22.2
3.1
2.7
10.2
12.5
4.5
3.8
India Cements
Neutral
120
-
3,671
4,364
4,997
18.5
19.2
7.9
11.3
15.1
10.6
1.1
1.1
8.0
8.5
1.6
1.4
JK Cement
Neutral
728
-
5,091
4,398
5,173
15.5
17.5
31.2
55.5
23.3
13.1
2.8
2.4
12.0
15.5
1.7
1.4
J K Lakshmi Cement
Buy
412
565
4,849
2,913
3,412
14.5
19.5
7.5
22.5
54.9
18.3
3.4
2.8
12.5
18.0
2.3
1.9
Orient Cement
Buy
136
215
2,783
2,114
2,558
18.5
20.5
8.1
11.3
16.8
12.0
2.5
2.1
9.0
14.0
1.9
1.5
UltraTech Cement
Neutral
3,594
-
98,638
25,768
30,385
21.0
23.5
111.0
160.0
32.4
22.5
4.1
3.6
13.5
15.8
3.9
3.3
Construction
ITNL
Neutral
101
-
3,329
8,946
10,017
31.0
31.6
8.1
9.1
12.5
11.1
0.5
0.5
4.2
5.0
3.7
3.4
KNR Constructions
Accumulate
735
802
2,068
1,385
1,673
14.7
14.0
41.2
48.5
17.9
15.2
3.3
2.9
14.9
15.2
1.6
1.3
Larsen & Toubro
Buy
1,383
1,700
128,855
67,665
77,249
10.7
11.5
57.3
71.2
24.1
19.4
2.2
2.1
12.6
14.3
2.1
1.8
Gujarat Pipavav Port
Neutral
140
-
6,773
705
788
52.2
51.7
5.0
5.6
28.0
25.0
2.8
2.5
11.2
11.2
9.3
7.8
Nagarjuna Const.
Neutral
80
-
4,459
8,842
9,775
9.1
8.8
5.3
6.4
15.1
12.5
1.2
1.1
8.2
9.1
0.7
0.6
PNC Infratech
Buy
111
143
2,837
2,350
2,904
13.1
13.2
9.0
8.8
12.3
12.6
0.5
0.4
15.9
13.9
1.3
1.1
Simplex Infra
Neutral
302
-
1,494
6,829
7,954
10.5
10.5
31.4
37.4
9.6
8.1
1.0
0.9
9.9
13.4
0.6
0.5
Power Mech Projects
Neutral
469
-
689
1,801
2,219
12.7
14.6
72.1
113.9
6.5
4.1
1.2
1.0
16.8
11.9
0.4
0.3
Sadbhav Engineering
Accumulate
276
298
4,734
3,598
4,140
10.3
10.6
9.0
11.9
30.7
23.2
3.2
2.8
9.9
11.9
1.6
1.4
NBCC
Neutral
228
-
13,686
7,428
9,549
7.9
8.6
8.2
11.0
27.8
20.7
1.4
1.1
28.2
28.7
1.6
1.2
MEP Infra
Neutral
37
-
597
1,877
1,943
30.6
29.8
3.0
4.2
12.3
8.8
5.9
4.0
0.6
0.6
1.7
1.5
SIPL
Neutral
90
-
3,174
1,036
1,252
65.5
66.2
(8.4)
(5.6)
3.4
3.9
(22.8)
(15.9)
11.3
9.4
Stock Watch
December 01, 2016
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
Engineers India
Neutral
293
-
9,866
1,725
1,935
16.0
19.1
11.4
13.9
25.7
21.1
3.5
3.4
13.4
15.3
4.6
4.2
Financials
Axis Bank
Buy
470
630
112,118
46,932
53,575
3.5
3.4
32.4
44.6
14.5
10.5
1.9
1.6
13.6
16.5
-
-
Bank of Baroda
Neutral
164
-
37,846
19,980
23,178
1.8
1.8
11.5
17.3
14.3
9.5
1.6
1.4
8.3
10.1
-
-
Canara Bank
Neutral
318
-
17,278
15,225
16,836
1.8
1.8
14.5
28.0
21.9
11.4
1.5
1.2
5.8
8.5
-
-
Dewan Housing Finance Buy
257
350
8,029
2,225
2,688
2.9
2.9
29.7
34.6
8.6
7.4
1.4
1.2
16.1
16.8
-
-
Equitas Holdings
Buy
161
235
5,388
939
1,281
11.7
11.5
5.8
8.2
27.7
19.6
2.4
2.1
10.9
11.5
-
-
Federal Bank
Neutral
71
-
12,139
9,353
10,623
2.9
2.9
4.4
5.8
16.1
12.2
1.5
1.4
9.5
11.0
-
-
HDFC
Neutral
1,265
-
199,945
11,475
13,450
3.4
3.4
45.3
52.5
27.9
24.1
5.4
4.8
20.2
20.5
-
-
HDFC Bank
Accumulate
1,200
1,350
303,708
46,097
55,433
4.5
4.5
58.4
68.0
20.5
17.6
3.6
3.0
18.8
18.6
-
-
ICICI Bank
Buy
265
315
154,208
42,800
44,686
3.1
3.3
18.0
21.9
14.7
12.1
2.0
1.9
11.1
12.3
-
-
Lakshmi Vilas Bank
Buy
149
174
2,682
3,339
3,799
2.7
2.8
11.0
14.0
13.6
10.7
1.4
1.3
11.2
12.7
-
-
LIC Housing Finance
Accumulate
564
630
28,453
3,712
4,293
2.6
2.5
39.0
46.0
14.5
12.3
2.7
2.3
19.9
20.1
-
-
Punjab Natl.Bank
Neutral
138
-
29,409
23,532
23,595
2.3
2.4
6.8
12.6
20.3
11.0
3.1
2.2
3.3
6.5
-
-
RBL Bank
Neutral
364
-
13,452
1,783
2,309
2.6
2.6
12.7
16.4
28.6
22.2
3.1
2.8
12.8
13.3
-
-
South Ind.Bank
Neutral
22
-
2,903
6,435
7,578
2.5
2.5
2.7
3.1
8.0
6.9
1.0
0.9
10.1
11.2
-
-
St Bk of India
Neutral
258
-
200,590
88,650
98,335
2.6
2.6
13.5
18.8
19.1
13.7
1.8
1.6
7.0
8.5
-
-
Union Bank
Neutral
152
-
10,442
13,450
14,925
2.3
2.3
25.5
34.5
6.0
4.4
0.9
0.7
7.5
10.2
-
-
Yes Bank
Neutral
1,171
-
49,316
8,978
11,281
3.3
3.4
74.0
90.0
15.8
13.0
3.0
2.6
17.0
17.2
-
-
FMCG
Asian Paints
Neutral
970
-
93,028
17,128
18,978
16.8
16.4
19.1
20.7
50.8
46.9
17.7
16.7
34.8
35.5
5.4
4.8
Britannia
Buy
3,038
3,626
36,444
9,594
11,011
14.6
14.9
80.3
94.0
37.8
32.3
15.6
12.0
41.2
-
3.7
3.1
Colgate
Accumulate
934
995
25,408
4,605
5,149
23.4
23.4
23.8
26.9
39.3
34.7
21.7
17.0
64.8
66.8
5.4
4.8
Dabur India
Accumulate
283
304
49,845
8,315
9,405
19.8
20.7
8.1
9.2
35.0
30.8
9.7
8.1
31.6
31.0
5.6
5.0
GlaxoSmith Con*
Neutral
4,992
-
20,993
4,350
4,823
21.2
21.4
179.2
196.5
27.9
25.4
7.4
6.3
27.1
26.8
4.2
3.7
Godrej Consumer
Neutral
1,452
-
49,444
10,235
11,428
18.4
18.6
41.1
44.2
35.3
32.9
7.8
6.6
24.9
24.8
4.9
4.3
HUL
Neutral
844
-
182,727
35,252
38,495
17.8
17.8
20.7
22.4
40.9
37.7
39.1
33.5
95.6
88.9
5.0
4.6
ITC
Buy
233
284
281,129
40,059
44,439
38.3
39.2
9.0
10.1
25.9
23.0
7.2
6.3
27.8
27.5
6.5
5.9
Marico
Buy
252
300
32,551
6,430
7,349
18.8
19.5
6.4
7.7
39.4
32.8
11.9
10.0
33.2
32.5
4.9
4.2
Nestle*
Neutral
6,257
-
60,324
10,073
11,807
20.7
21.5
124.8
154.2
50.1
40.6
20.6
18.5
34.8
36.7
5.8
4.9
Tata Global
Neutral
124
-
7,817
8,675
9,088
9.8
9.8
7.4
8.2
16.7
15.1
1.9
1.8
7.9
8.1
0.8
0.8
Stock Watch
December 01, 2016
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
Procter & Gamble
Accumulate
6,639
7,369
21,551
2,939
3,342
23.2
23.0
146.2
163.7
45.4
40.6
101.7
97.5
25.3
23.5
6.9
6.0
Hygiene
IT
HCL Tech^
Buy
803
1,000
113,255
49,242
57,168
20.5
20.5
55.7
64.1
14.4
12.5
2.9
2.2
20.3
17.9
2.2
1.8
Infosys
Buy
975
1,249
224,056
68,350
77,326
27.0
27.0
62.5
69.4
15.6
14.1
3.3
3.0
21.3
21.6
2.7
2.4
TCS
Buy
2,277
2,620
448,617
119,025
133,308
27.6
27.6
131.2
145.5
17.4
15.7
5.6
5.2
32.4
33.1
3.5
3.1
Tech Mahindra
Buy
485
600
47,123
29,673
32,937
15.5
17.0
32.8
39.9
14.8
12.2
2.9
2.5
19.6
20.7
1.3
1.1
Wipro
Buy
465
590
113,053
55,440
60,430
18.1
18.1
35.9
39.9
13.0
11.7
2.3
2.1
19.0
19.3
1.8
1.6
Media
D B Corp
Neutral
363
-
6,676
2,297
2,590
27.4
28.2
21.0
23.4
17.3
15.5
4.0
3.5
23.7
23.1
2.7
2.3
HT Media
Neutral
72
-
1,664
2,693
2,991
12.6
12.9
7.9
9.0
9.1
7.9
0.8
0.7
7.8
8.3
0.2
0.1
Jagran Prakashan
Buy
176
225
5,744
2,355
2,635
28.0
28.0
10.8
12.5
16.3
14.1
3.5
3.1
21.7
21.7
2.5
2.2
Sun TV Network
Neutral
471
-
18,557
2,850
3,265
70.1
71.0
26.2
30.4
18.0
15.5
4.6
4.1
24.3
25.6
6.1
5.2
Hindustan Media
Neutral
271
-
1,991
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
315
385
1,882
637
743
27.5
27.5
18.4
21.4
17.2
14.8
3.0
2.5
17.4
17.2
2.6
2.1
Metals & Mining
Coal India
Neutral
308
-
194,670
84,638
94,297
21.4
22.3
24.5
27.1
12.6
11.4
5.2
5.0
42.6
46.0
1.8
1.6
Hind. Zinc
Neutral
282
-
119,260
14,252
18,465
55.9
48.3
15.8
21.5
17.9
13.1
2.9
2.6
17.0
20.7
8.4
6.5
Hindalco
Neutral
176
-
36,323
107,899
112,095
7.4
8.2
9.2
13.0
19.1
13.5
0.9
0.9
4.8
6.6
0.9
0.8
JSW Steel
Neutral
1,727
-
41,733
53,201
58,779
16.1
16.2
130.6
153.7
13.2
11.2
1.8
1.6
14.0
14.4
1.5
1.3
NMDC
Neutral
122
-
38,599
6,643
7,284
44.4
47.7
7.1
7.7
17.2
15.8
1.5
1.5
8.8
9.2
3.6
3.2
SAIL
Neutral
51
-
21,146
47,528
53,738
(0.7)
2.1
(1.9)
2.6
19.7
0.6
0.5
(1.6)
3.9
1.3
1.2
Vedanta
Neutral
230
-
68,143
71,744
81,944
19.2
21.7
13.4
20.1
17.2
11.4
1.5
1.3
8.4
11.3
1.3
1.0
Tata Steel
Neutral
415
-
40,301
121,374
121,856
7.2
8.4
18.6
34.3
22.3
12.1
1.4
1.3
6.1
10.1
1.0
1.0
Oil & Gas
Cairn India
Neutral
252
-
47,275
9,127
10,632
4.3
20.6
8.8
11.7
28.7
21.6
0.9
0.9
3.3
4.2
6.6
5.5
GAIL
Neutral
425
-
53,885
56,220
65,198
9.3
10.1
27.1
33.3
15.7
12.8
1.4
1.3
9.3
10.7
1.1
1.0
ONGC
Neutral
289
-
247,254
137,222
152,563
15.0
21.8
19.5
24.1
14.8
12.0
1.3
1.2
8.5
10.1
2.1
1.9
Indian Oil Corp
Neutral
307
-
148,931
373,359
428,656
5.9
5.5
54.0
59.3
5.7
5.2
0.9
0.8
16.0
15.6
0.6
0.5
Reliance Industries
Neutral
993
-
321,894
301,963
358,039
12.1
12.6
87.7
101.7
11.3
9.8
1.2
1.1
10.7
11.3
1.5
1.3
Pharmaceuticals
Alembic Pharma
Neutral
663
-
12,490
3,483
4,083
20.2
21.4
24.3
30.4
27.3
21.8
6.2
5.0
25.5
25.3
3.5
2.9
Aurobindo Pharma
Buy
740
877
43,294
15,720
18,078
23.7
23.7
41.4
47.3
17.9
15.6
4.6
3.6
29.6
26.1
3.0
2.6
Aventis*
Neutral
4,466
-
10,284
2,277
2,597
17.3
18.3
149.4
172.0
29.9
26.0
5.0
4.0
25.1
28.8
4.2
3.4
Cadila Healthcare
Neutral
402
-
41,129
10,429
12,318
22.6
22.0
16.9
19.2
23.8
20.9
6.1
4.9
28.5
25.7
3.9
3.2
Stock Watch
December 01, 2016
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
Pharmaceuticals
Cipla
Reduce
567
490
45,526
15,378
18,089
17.4
18.4
21.6
27.2
26.2
20.8
3.4
3.0
13.7
15.2
3.2
2.6
Dr Reddy's
Neutral
3,199
-
53,004
16,043
18,119
20.8
22.4
112.4
142.9
28.5
22.4
3.8
3.3
14.1
15.9
3.3
2.9
Dishman Pharma
Neutral
237
-
3,827
1,718
1,890
22.7
22.8
9.5
11.3
25.0
21.0
2.4
2.2
10.1
10.9
2.7
2.4
GSK Pharma*
Neutral
2,694
-
22,815
3,000
3,312
15.4
20.6
46.5
60.8
57.9
44.3
13.9
13.9
26.3
30.6
7.3
6.7
Indoco Remedies
Reduce
258
240
2,377
1,112
1,289
16.2
18.2
11.6
16.0
22.2
16.1
3.6
3.0
17.0
20.1
2.3
1.9
Ipca labs
Accumulate
578
613
7,298
3,303
3,799
15.3
15.3
17.3
19.7
33.4
29.4
2.9
2.7
9.1
9.4
2.3
2.0
Lupin
Buy
1,503
1,809
67,770
15,912
18,644
26.4
26.7
58.1
69.3
25.9
21.7
5.0
4.1
21.4
20.9
4.3
3.6
Sun Pharma
Buy
710
847
170,947
31,129
35,258
32.0
32.9
30.2
35.3
23.5
20.1
3.8
3.2
20.0
20.1
5.1
4.3
Power
Tata Power
Neutral
74
-
20,028
36,916
39,557
17.4
27.1
5.1
6.3
14.5
11.8
1.3
1.2
9.0
10.3
1.6
1.4
NTPC
Neutral
163
-
134,525
86,605
95,545
17.5
20.8
11.8
13.4
13.8
12.2
1.4
1.3
10.5
11.1
2.9
2.9
Power Grid
Neutral
192
-
100,447
25,763
29,762
74.3
73.1
14.8
17.3
13.0
11.1
2.0
1.8
16.9
17.5
8.2
7.7
Real Estate
Prestige Estate
Buy
153
210
5,736
4,707
5,105
25.2
26.0
10.3
13.0
14.9
11.8
1.2
1.1
10.3
10.2
2.4
2.1
MLIFE
Buy
377
522
1,547
1,152
1,300
22.7
24.6
29.9
35.8
12.6
10.5
0.9
0.9
7.6
8.6
2.1
1.7
Telecom
Bharti Airtel
Neutral
325
-
129,716
105,086
114,808
34.5
34.7
12.2
16.4
26.6
19.8
1.8
1.7
6.8
8.4
2.1
1.9
Idea Cellular
Neutral
78
-
27,924
40,133
43,731
37.2
37.1
6.4
6.5
12.1
11.9
1.0
0.9
8.2
7.6
1.7
1.5
zOthers
Abbott India
Neutral
4,896
-
10,404
3,153
3,583
14.1
14.4
152.2
182.7
32.2
26.8
157.9
134.9
25.6
26.1
3.0
2.6
Asian Granito
Buy
222
351
668
1,071
1,182
12.1
12.4
12.7
16.0
17.5
13.9
1.7
1.5
9.5
10.7
0.9
0.8
Bajaj Electricals
Buy
223
274
2,249
4,801
5,351
5.7
6.2
10.4
13.7
21.4
16.3
2.6
2.4
12.4
14.5
0.5
0.4
Banco Products (India)
Neutral
196
-
1,404
1,353
1,471
12.3
12.4
14.5
16.3
13.5
12.1
18.7
16.9
14.5
14.6
1.0
104.8
Coffee Day Enterprises
Neutral
210
-
4,323
2,964
3,260
20.5
21.2
4.7
8.0
-
26.2
2.4
2.2
5.5
8.5
1.9
1.7
Ltd
Competent Automobiles Neutral
162
-
100
1,137
1,256
3.1
2.7
28.0
23.6
5.8
6.9
31.2
28.2
14.3
11.5
0.1
0.1
Elecon Engineering
Neutral
52
-
570
1,482
1,660
13.7
14.5
3.9
5.8
13.4
9.0
3.2
2.9
7.8
10.9
0.7
0.6
Finolex Cables
Neutral
413
-
6,323
2,883
3,115
12.0
12.1
14.2
18.6
29.1
22.2
15.5
13.5
15.8
14.6
1.9
1.7
Garware Wall Ropes
Neutral
627
-
1,371
873
938
14.3
14.3
35.2
37.5
17.8
16.7
3.1
2.7
17.5
15.9
1.5
1.4
Goodyear India*
Neutral
750
-
1,730
1,598
1,704
10.4
10.2
49.4
52.6
15.2
14.3
70.1
61.5
18.2
17.0
0.8
107.4
Hitachi
Neutral
1,448
-
3,937
2,081
2,433
8.8
8.9
33.4
39.9
43.4
36.3
35.0
29.2
22.1
21.4
1.9
1.6
HSIL
Neutral
294
-
2,129
2,384
2,515
15.8
16.3
15.3
19.4
19.3
15.2
19.1
16.5
7.8
9.3
1.1
1.0
Interglobe Aviation
Neutral
860
-
30,983
21,122
26,005
14.5
27.6
110.7
132.1
7.8
6.5
46.5
33.2
168.5
201.1
1.4
1.1
Jyothy Laboratories
Neutral
352
-
6,383
1,440
2,052
11.5
13.0
8.5
10.0
41.4
35.2
10.0
9.3
18.6
19.3
4.7
3.3
Stock Watch
December 01, 2016
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
Kirloskar Engines India
Neutral
335
-
4,843
2,554
2,800
9.9
10.0
10.5
12.1
31.9
27.7
13.3
12.6
10.7
11.7
1.5
1.4
Ltd
Linc Pen & Plastics
Neutral
237
-
350
382
420
9.3
9.5
13.5
15.7
17.6
15.1
3.0
2.6
17.1
17.3
1.0
0.9
M M Forgings
Neutral
424
-
512
546
608
20.4
20.7
41.3
48.7
10.3
8.7
58.1
51.4
16.6
17.0
0.8
0.7
Manpasand Bever.
Neutral
615
-
3,515
836
1,087
19.6
19.4
16.9
23.8
36.4
25.8
4.4
3.8
12.0
14.8
3.9
2.9
Mirza International
Buy
81
107
973
987
1,106
18.0
18.0
6.5
7.6
12.4
10.6
2.0
1.7
15.9
15.7
1.2
1.1
MT Educare
Neutral
117
-
465
366
417
17.7
18.2
9.4
10.8
12.5
10.8
2.8
2.4
22.2
22.3
1.2
1.0
Narayana Hrudaya
Neutral
345
-
7,055
1,873
2,166
11.5
11.7
2.6
4.0
130.5
87.1
8.0
7.2
6.1
8.3
3.9
3.3
Navkar Corporation
Buy
175
265
2,496
408
612
42.9
42.3
6.8
11.5
25.8
15.2
1.8
1.6
6.9
10.5
7.0
4.7
Navneet Education
Neutral
111
-
2,653
1,062
1,147
24.0
24.0
6.1
6.6
18.3
16.8
3.8
3.3
20.6
19.8
2.6
2.4
Nilkamal
Neutral
1,400
-
2,089
1,995
2,165
10.7
10.4
69.8
80.6
20.1
17.4
80.0
69.5
16.6
16.5
1.0
0.9
Page Industries
Neutral
13,388
-
14,933
2,450
3,124
20.1
17.6
299.0
310.0
44.8
43.2
298.2
227.6
47.1
87.5
6.1
4.8
Parag Milk Foods
Neutral
271
-
2,277
1,919
2,231
9.3
9.6
9.5
12.9
28.7
20.9
4.5
3.7
15.5
17.5
1.3
1.1
Quick Heal
Neutral
236
-
1,650
408
495
27.3
27.0
7.7
8.8
30.4
26.8
2.8
2.8
9.3
10.6
3.2
2.6
Radico Khaitan
Buy
119
147
1,589
1,667
1,824
13.0
13.2
6.7
8.2
18.0
14.6
1.6
1.5
9.0
10.2
1.3
1.2
Relaxo Footwears
Neutral
430
-
5,158
2,085
2,469
9.2
8.2
7.6
8.0
56.8
54.1
22.0
18.8
17.9
18.8
2.6
2.2
S H Kelkar & Co.
Neutral
296
-
4,287
1,036
1,160
15.1
15.0
6.1
7.2
48.6
41.3
5.2
4.8
10.7
11.5
4.0
3.5
Siyaram Silk Mills
Accumulate
1,250
1,605
1,172
1,733
1,948
11.6
11.7
96.6
114.7
12.9
10.9
2.0
1.7
15.3
15.7
0.9
0.8
Styrolution ABS India*
Neutral
588
-
1,034
1,440
1,537
9.2
9.0
40.6
42.6
14.5
13.8
37.0
33.6
12.3
11.6
0.7
0.6
Surya Roshni
Neutral
207
-
906
3,342
3,625
7.8
7.5
17.3
19.8
12.0
10.5
22.7
18.2
10.5
10.8
0.5
0.5
Team Lease Serv.
Neutral
868
-
1,484
3,229
4,001
1.5
1.8
22.8
32.8
38.1
26.4
4.1
3.5
10.7
13.4
0.4
0.3
The Byke Hospitality
Neutral
173
-
695
287
384
20.5
20.5
7.6
10.7
22.8
16.2
4.8
3.9
20.7
23.5
2.4
1.8
Transport Corporation of
Neutral
175
-
1,341
2,671
2,911
8.5
8.8
13.9
15.7
12.6
11.2
1.7
1.5
13.7
13.8
0.6
0.6
India
TVS Srichakra
Neutral
3,493
-
2,675
2,304
2,614
13.7
13.8
231.1
266.6
15.1
13.1
392.5
309.1
33.9
29.3
1.2
1.0
UFO Moviez
Neutral
442
-
1,220
619
685
33.2
33.4
30.0
34.9
14.8
12.7
2.0
1.8
13.8
13.9
1.7
1.3
Visaka Industries
Neutral
200
-
317
1,051
1,138
10.3
10.4
21.0
23.1
9.5
8.6
25.6
24.0
9.0
9.2
0.6
0.5
VRL Logistics
Neutral
275
-
2,509
1,902
2,119
16.7
16.6
14.6
16.8
18.9
16.3
4.1
3.6
21.9
22.2
1.4
1.3
Wonderla Holidays
Neutral
339
-
1,916
287
355
38.0
40.0
11.3
14.2
30.0
23.9
4.3
3.8
21.4
23.9
6.4
5.2
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on November 30, 2016
Market Outlook
December 01, 2016
Research Team Tel: 022 - 39357800
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