Market Outlook
January 02, 2018
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open negative tracking global indices and SGX Nifty.
BSE Sensex
(0.7)
(244)
33,813
Most global stock markets remain closed today on New Year's Eve after posting their
Nifty
(0.9)
(95)
10,436
best annual gain since 2013. The Dow Jones fell 0.48% to close at 24,719and the
Mid Cap
0.1
13
17,836
Nasdaq Composite or 0.67 percent, to 6,903.
Small Cap
0.3
49
19,280
Bankex
(0.8)
(218)
28,639
The majority of the European markets remain closed. However in the last trading
session the FTSE wrapped up with a solid increase, which drove the market to a new
high for the year. The FTSE 100 is down by 0.9% to close at 7,688.
Global Indices
Chg (%)
(Pts)
(Close)
Dow Jones
(0.5)
(118)
24,719
Indian shares succumbed to profit after reaching record highs last year despite
Nasdaq
(0.7)
(47)
6,903
sluggish corporate earnings and short-term disruptions caused by the
implementation of the GST. Lack of cues from global markets also weighed on
FTSE
0.9
65
7,688
markets. The Sensex ended down 0.72% at 33,813.The Nifty ended at 10,436,
Nikkei
(0.1)
(19)
22,765
recording a loss of 0.9%.
Hang Seng
0.2
55
29,919
Shanghai Com
0.3
11
3,307
News Analysis
Maruti Suzuki sales up ~10% in December, but exports hit slow lane
Advances / Declines
BSE
NSE
Detailed analysis on Pg2
Advances
1,663
1,021
Investor’s Ready Reckoner
Declines
1,279
784
Unchanged
128
45
Key Domestic & Global Indicators
Stock Watch: Latest investment recommendations on 150+ stocks
Refer Pg5 onwards
Volumes (` Cr)
BSE
4,865
Top Picks
NSE
28,339
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
Blue Star
Capital Goods Accumulate
819
867
5.9
Net Inflows (` Cr)
Net
Mtd
Ytd
Dewan Housing Finance
Financials
Buy
591
712
20.5
FII
1,254
(6,579)
51,053
Asian Granito
Other
Accumulate
570
639
12.1
Navkar Corporation
Other
Buy
191
265
38.5
*MFs
1,012
6,114 1,16,352
KEI Industries
Capital Goods
Buy
374
436
16.6
More Top Picks on Pg4
Top Gainers
Price (`)
Chg (%)
Rnaval
65
32.3
Key Upcoming Events
Previous
Consensus
Rpower
61
20.7
Date
Region
Event Description
Reading
Expectations
Unitech
11
17.2
Jan02
Germany PMI Manufacturing
63.30
63.30
Ltts
1,068
4.6
Jan02
Germany Unemployment change (000's)
(18.00)
(13.00)
Jan03
UK
PMI Manufacturing
58.20
57.90
Videoind
21
4.3
Jan03
US
Initial Jobless claims
245.00
Jan04
US
Unnemployment rate
4.10
4.10
Top Losers
Price (`)
Chg (%)
More Events on Pg7
Jpassociat
25
(3.5)
Idea
105
(3.1)
Coromandel
560
(2.9)
Irb
232
(2.5)
Rcom
35
(2.3)
As on January 01 2018
Market Outlook
January 02, 2018
News Analysis
Maruti Suzuki sales up ~10% in December, but exports hit slow lane
Automobile major Maruti Suzuki India reported a 10.3% rise in its monthly sales
for December. According to the company, its total sales including exports during
the month under review rose to 130,066 units from 117,908 units sold during the
corresponding month of 2016. This includes 119,286 units in the domestic market
and 10,780 units of exports. The company had sold a total of 117,908 units in
December 2016.
The company's December domestic sales edged higher by 12.1 per cent to
119,286 units from 106,414 units. However, exports dipped by 6.2 per cent, with
10,780 units that were shipped out during last month, up from 11,494 units sold
abroad in December 2016.
Economic and Political News
CPI for industrial workers up at 3.97% in Nov as food items get costlier.
United Payments Interface (UPI) closed the year on a high, as the volume of
transactions jumped 39% to 145.64 million in December.
Corporate News
Thermax wins Rs 327cr order for a co-generation power plant.
GAIL commissions India’s second largest rooftop solar plant.
Prestige Estates to buy CapitaLand’s stake in various entities for Rs 342cr.
Market Outlook
January 02, 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
26,615
2,226
2,341
5.2
more products in USA, which bodes for its international
business.
We expect the company would report strong profitability
Asian Granito
1,715
570
639
12.1
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
7,851
819
867
5.9
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
18,529
591
712
20.5
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
8,898
123
180
46.0
Increasing share of CASA will help in NIM
improvement.
High order book execution in EPC segment, rising B2C
KEI Industries
2,931
374
436
16.6
sales and higher exports to boost the revenues and
profitability
Expected to benefit from the lower capex requirement
Music Broadcast
2,157
378
434
14.8
and 15 year long radio broadcast licensing.
Massive capacity expansion along with rail advantage
Navkar Corporation
2,881
191
265
38.5
at ICD as well CFS augur well for the company
Strong brands and distribution network would boost
Siyaram Silk Mills
3,493
745
813
9.1
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
2,596
435
500
14.9
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
2,91,974
9,665
10,619
9.9
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
2,490
462
655
41.7
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
7,722
348
400
15.1
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
2,927
92
102
11.5
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
450
201
244
21.6
& 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 02, 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 02, 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 02, 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 02, 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
2,110
(0.7)
1.6
(7.7)
India
Nifty
10,531
0.7
6.8
29.9
China
Shanghai Composite
3,307
(0.9)
(1.0)
5.4
South Africa
Top 40
52,533
(2.4)
7.6
20.3
Mexico
Mexbol
49,354
4.4
(2.0)
8.1
Indonesia
LQ45
1,079
6.0
10.6
21.2
Malaysia
KLCI
1,797
4.5
1.8
9.9
Thailand
SET 50
1,135
4.7
6.3
20.7
USA
Dow Jones
24,719
3.7
10.4
25.1
UK
FTSE
7,688
4.1
5.0
7.1
Japan
Nikkei
22,765
0.7
12.3
17.4
Germany
DAX
12,918
(0.6)
2.5
11.4
France
CAC
5,313
(0.9)
0.4
8.4
Source: Bloomberg, Angel Research p68in4
Stock Watch
January 02, 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
270
209
5,251
1,873
2,099
15.0
15.0
9.5
10.5
28.4
25.7
4.3
3.9
15.8
16.0
2.7
2.4
United Phosphorus
Accumulate
757
820
38,495
18,922
21,949
18.0
18.5
36.2
45.6
20.9
16.6
4.4
3.6
22.7
23.8
2.2
1.8
Auto & Auto Ancillary
Ashok Leyland
Accumulate
119
127
34,789
23,339
27,240
10.1
10.8
4.7
6.2
25.6
19.1
5.1
4.5
20.0
23.6
1.4
1.2
Bajaj Auto
Neutral
3,293
-
95,300
23,936
27,955
19.5
20.1
142.7
167.3
23.1
19.7
5.0
4.5
21.8
22.8
3.6
3.0
Bharat Forge
Buy
723
875
33,667
7,637
8,755
21.7
23.2
36.1
47.3
20.0
15.3
3.6
3.1
18.5
20.8
4.3
3.6
Eicher Motors
Neutral
29,893
-
81,419
19,043
22,837
19.5
19.9
835.4
1,019.0
35.8
29.3
13.4
10.3
40.9
37.8
4.1
3.4
Gabriel India
Neutral
202
-
2,897
1,782
2,033
9.7
10.2
7.1
8.9
28.4
22.8
5.7
4.9
21.0
22.2
1.6
1.4
Hero Motocorp
Accumulate
3,769
4,129
75,266
32,239
36,878
16.0
15.6
184.4
206.5
20.4
18.3
6.4
5.6
31.3
30.7
2.1
1.8
Jamna Auto Industries Neutral
82
-
3,253
1,441
1,662
14.4
14.8
13.9
17.6
5.9
4.6
1.6
1.3
30.0
31.0
2.3
1.9
Mahindra and Mahindra Neutral
746
-
92,680
46,971
53,816
13.6
14.0
67.7
79.8
11.0
9.3
1.6
1.4
15.0
15.9
1.9
1.6
Maruti
Accumulate
9,665
10,619
291,974
79,470
95,208
15.9
17.2
281.7
363.8
34.3
26.6
7.5
6.1
21.7
22.8
3.3
2.7
Minda Industries
Neutral
1,277
-
11,038
4,328
5,084
11.0
11.9
27.3
36.4
46.9
35.1
9.9
7.8
23.1
25.6
2.6
2.2
Motherson Sumi
Neutral
379
-
79,828
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
1.3
Tata Motors
Neutral
425
-
122,828
303,167
343,649
11.8
13.8
33.1
54.7
12.9
7.8
2.1
1.7
16.9
23.0
0.5
0.4
TVS Motor
Neutral
766
-
36,408
13,992
16,216
9.0
9.4
17.1
20.3
45.0
37.8
11.9
9.2
29.7
27.7
2.5
2.1
Amara Raja Batteries
Neutral
834
-
14,239
6,140
7,122
14.3
15.6
29.3
39.0
28.5
21.4
4.9
4.1
17.1
19.0
2.3
2.0
Exide Industries
Neutral
220
-
18,670
8,689
9,854
15.1
15.2
9.7
11.0
22.8
20.0
4.0
3.6
15.7
16.1
1.9
1.6
Apollo Tyres
Neutral
269
-
15,368
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
1,945
-
7,868
6,661
7,717
11.1
14.2
116.2
178.2
16.7
10.9
2.9
2.4
15.2
21.3
1.3
1.1
JK Tyres
Neutral
147
-
3,330
8,318
9,239
16.2
16.4
21.0
27.5
7.0
5.3
1.4
1.1
19.1
20.4
0.8
0.7
Swaraj Engines
Neutral
2,079
-
2,583
788
889
16.4
16.5
71.6
81.0
29.0
25.7
8.4
7.8
29.6
31.0
2.9
2.5
Subros
Neutral
306
-
1,836
1,855
2,135
11.6
11.8
10.3
14.7
29.9
20.9
4.5
3.9
15.8
19.1
1.2
1.0
Capital Goods
BEML
Neutral
1,599
-
6,658
4,286
5,194
7.1
8.2
42.9
58.1
37.3
27.5
3.1
2.8
7.6
8.7
1.6
1.3
Bharat Electronics
Neutral
181
-
44,582
10,258
12,470
19.6
19.5
7.3
8.6
24.9
21.1
0.5
0.4
20.4
21.9
3.8
3.1
Voltas
Neutral
649
-
21,463
6,778
8,004
9.6
11.0
17.1
22.4
37.9
29.0
9.1
7.9
17.7
19.8
2.9
2.4
BHEL
Neutral
95
-
34,878
33,200
39,167
6.8
9.5
6.2
11.2
15.3
8.5
0.7
0.7
4.6
8.0
0.6
0.5
Blue Star
Accumulate
819
867
7,851
5,220
6,207
6.3
6.6
16.8
22.3
48.7
36.7
9.7
8.6
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
140
-
3,425
1,778
1,993
14.7
15.1
8.1
9.1
17.3
15.4
3.9
3.6
21.8
23.6
1.7
1.5
Stock Watch
January 02, 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
381
-
9,802
9,779
11,113
9.4
9.8
14.2
18.2
26.9
21.0
5.1
4.2
21.1
22.1
1.3
1.1
KEI Industries
Buy
374
436
2,931
3,001
3,391
10.0
10.0
13.0
16.1
28.8
23.2
5.2
4.3
18.2
18.7
1.2
1.0
Thermax
Neutral
1,207
-
14,383
4,125
4,747
10.3
10.8
26.7
31.5
45.2
38.3
5.1
4.6
11.2
12.0
3.2
2.8
VATech Wabag
Accumulate
629
681
3,437
3,867
4,126
9.6
10.0
34.9
39.8
18.0
15.8
3.0
2.6
17.7
17.5
0.9
0.8
Cement
ACC
Neutral
1,735
-
32,584
12,255
13,350
13.5
14.3
58.0
66.2
29.9
26.2
3.5
3.3
11.5
12.2
2.6
2.4
Ambuja Cements
Neutral
268
-
53,126
10,250
11,450
17.5
19.0
7.2
8.3
37.2
32.2
2.7
2.5
7.0
7.8
5.0
4.4
India Cements
Neutral
181
-
5,578
6,135
6,750
14.8
15.2
8.5
11.5
21.3
15.7
1.1
1.0
4.8
6.2
1.3
1.1
JK Cement
Neutral
1,119
-
7,824
4,150
4,775
19.2
20.0
49.0
63.5
22.8
17.6
3.6
3.1
17.0
18.5
2.3
2.0
J K Lakshmi Cement
Neutral
440
-
5,176
3,422
3,757
15.5
17.0
13.5
23.2
32.6
19.0
3.4
2.9
10.8
15.5
1.9
1.7
Orient Cement
Neutral
168
-
3,442
2,215
3,233
16.8
17.0
5.9
6.9
28.5
24.4
2.2
2.0
10.8
10.1
2.6
1.7
Prism Cement
Accumulate
117
131
5,892
5,155
5,616
7.0
7.0
2.0
3.0
58.5
39.0
5.4
4.7
10.0
13.8
1.4
1.3
UltraTech Cement
Neutral
4,258
-
116,890
28,250
35,150
20.2
23.5
77.5
122.2
54.9
34.8
4.6
4.2
9.6
14.8
4.6
3.7
Construction
KNR Constructions
Neutral
320
-
4,497
1,846
2,203
14.5
14.5
12.1
13.7
26.4
23.4
1.5
1.3
17.5
16.7
2.5
2.1
Larsen & Toubro
Neutral
1,262
-
176,782
95,787
109,476
10.2
11.6
44.5
50.8
28.4
24.9
3.6
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
212
-
5,434
2,040
2,935
13.0
13.0
6.4
9.0
33.1
23.5
0.9
0.8
9.7
12.2
2.7
1.9
Simplex Infra
Neutral
574
-
2,838
6,012
6,619
11.6
11.7
21.1
31.0
27.3
18.5
1.9
1.7
6.5
8.6
1.0
0.9
Sadbhav Engineering
Neutral
430
-
7,369
3,823
4,426
10.7
10.8
10.3
11.8
41.7
36.4
5.0
4.4
10.1
10.5
2.2
2.0
NBCC
Neutral
247
-
22,230
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
-
1,518
2,403
2,910
18.3
16.8
2.4
6.1
39.7
15.4
15.1
10.2
35.2
55.8
1.8
1.5
SIPL
Neutral
146
-
5,146
2,060
2,390
46.8
47.7
(5.8)
(3.1)
5.5
6.2
(14.2)
(2.3)
7.3
6.7
Engineers India
Neutral
196
-
13,208
1,795
2,611
21.1
22.4
5.9
8.1
33.2
24.2
2.4
2.3
12.9
16.1
5.7
3.8
Financials
Axis Bank
Neutral
565
-
144,821
32,558
35,843
3.5
3.2
27.8
41.0
20.3
13.8
2.2
1.9
11.4
14.9
-
-
Bank of Baroda
Neutral
162
-
37,224
22,533
26,079
2.4
2.4
12.0
20.9
13.5
7.7
0.9
0.8
6.6
11.0
-
-
Canara Bank
Neutral
362
-
21,592
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
478
-
6,358
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
1,318
-
20,599
2,826
3,307
6.3
6.3
53.7
64.6
24.6
20.4
4.2
3.6
18.3
18.9
-
-
Fin. Co.
Dewan Housing Finance Buy
591
712
18,523
2,676
3,383
2.4
2.7
37.4
49.7
15.8
11.9
2.1
1.8
13.8
16.2
-
-
Equitas Holdings
Buy
148
235
5,011
1,125
1,380
9.6
9.8
1.5
6.0
98.3
24.6
2.2
2.1
2.4
8.2
-
-
Stock Watch
January 02, 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
462
655
2,490
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
1,857
-
480,986
55,236
63,253
4.5
4.4
68.9
82.4
27.0
22.5
4.7
3.9
18.7
18.5
-
-
ICICI Bank
Neutral
311
-
199,437
42,361
51,378
3.6
3.9
18.4
25.7
16.9
12.1
1.8
1.8
11.3
15.0
-
-
Karur Vysya Bank
Buy
123
180
8,898
3,289
3,630
3.7
3.9
10.8
14.1
11.4
8.8
1.4
1.2
12.5
14.7
-
-
LIC Housing Finance
Accumulate
566
630
28,546
4,895
6,332
3.4
3.7
50.7
66.8
11.2
8.5
2.2
1.8
21.7
23.8
-
-
Punjab Natl.Bank
Neutral
170
-
41,174
23,708
25,758
2.1
2.1
5.9
16.4
28.9
10.3
0.9
0.8
3.0
8.3
-
-
RBL Bank
Neutral
509
-
21,234
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
695
825
4,351
496
597
4.4
4.2
38.5
48.7
18.1
14.3
3.2
2.7
19.6
20.6
-
-
South Ind.Bank
Neutral
31
-
5,679
3,195
3,567
3.0
3.1
3.0
3.8
10.4
8.2
1.0
0.9
10.5
11.9
-
-
St Bk of India
Neutral
307
-
265,047
105,827
121,056
2.4
2.5
16.1
25.6
19.1
12.0
1.5
1.4
6.6
9.9
-
-
Union Bank
Neutral
145
-
12,404
14,650
16,225
2.3
2.3
23.1
32.5
6.3
4.5
0.5
0.4
7.1
9.2
-
-
Yes Bank
Neutral
313
-
71,996
11,088
13,138
3.0
2.9
84.0
99.3
3.7
3.2
0.6
0.5
16.3
16.8
-
-
FMCG
Akzo Nobel India
Neutral
1,860
-
8,921
3,164
3,607
13.8
13.7
58.6
67.9
31.8
27.4
7.8
6.9
24.5
25.1
2.7
2.3
Asian Paints
Neutral
1,147
-
109,972
17,603
20,615
18.6
18.6
2,128.9
2,543.3
0.5
0.5
11.4
9.6
28.0
28.9
6.0
5.1
Britannia
Neutral
4,739
-
56,897
9,690
11,278
14.8
15.4
84.0
101.0
56.4
46.9
20.6
16.3
40.6
39.0
5.8
5.0
Colgate
Neutral
1,099
-
29,902
4,420
5,074
24.9
25.3
28.6
32.8
38.4
33.5
15.2
12.2
43.8
40.5
6.5
5.6
Dabur India
Neutral
350
-
61,565
8,346
9,344
19.6
19.9
7.8
9.0
44.8
38.8
9.0
8.2
25.2
24.8
7.0
6.1
GlaxoSmith Con*
Neutral
6,507
-
27,366
5,072
5,760
18.2
18.4
176.3
199.2
36.9
32.7
7.8
7.1
21.2
21.7
4.7
4.1
Godrej Consumer
Neutral
988
-
67,295
10,171
11,682
20.8
21.5
21.7
27.1
45.5
36.5
10.2
8.8
22.3
23.4
6.7
5.8
HUL
Neutral
1,347
-
291,609
37,077
41,508
20.3
21.8
5,189.9
6,318.5
0.3
0.2
41.1
35.1
74.8
82.0
7.7
6.9
ITC
Neutral
263
-
320,548
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
321
-
41,414
6,788
7,766
18.5
19.2
7.1
8.5
45.2
37.8
15.8
13.5
36.9
38.0
5.9
5.2
Nestle*
Neutral
7,851
-
75,698
10,083
11,182
20.0
20.9
119.7
141.3
65.6
55.6
231.2
211.3
36.7
39.8
7.2
6.4
Tata Global
Neutral
313
-
19,748
7,121
7,641
11.9
12.3
6.9
8.0
45.4
39.1
3.0
2.9
6.8
7.2
2.6
2.4
Procter & Gamble
Neutral
9,359
-
30,380
3,034
3,579
27.1
27.7
167.7
198.8
55.8
47.1
15.0
12.9
28.8
29.5
9.4
7.9
Hygiene
IT
HCL Tech^
Buy
881
1,014
125,718
50,009
54,608
22.1
22.1
62.8
67.6
14.0
13.0
3.2
2.7
22.4
20.6
2.2
1.9
Infosys
Accumulate
1,035
1,120
237,635
70,333
75,960
26.0
26.0
61.7
65.9
16.8
15.7
3.2
2.9
18.9
18.7
2.8
2.5
TCS
Reduce
2,655
2,442
508,176
123,384
134,488
26.1
26.1
133.2
143.7
19.9
18.5
5.5
5.1
27.6
27.8
3.8
3.4
Stock Watch
January 02, 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
503
-
49,109
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
318
-
154,639
54,164
56,544
22.3
22.3
18.8
19.5
16.9
16.3
2.7
2.3
15.0
13.6
2.1
1.8
Media
D B Corp
Neutral
358
-
6,581
2,404
2,625
30.5
31.5
23.7
26.9
15.1
13.3
3.6
3.0
23.5
22.8
2.6
2.3
HT Media
Neutral
102
-
2,364
2,589
2,830
15.1
15.4
8.3
10.9
12.2
9.3
1.0
0.9
8.4
10.4
0.5
0.3
Jagran Prakashan
Buy
180
225
5,607
2,541
2,835
28.5
28.7
12.7
14.1
14.2
12.8
2.9
2.5
21.3
21.4
2.1
1.8
Sun TV Network
Neutral
996
-
39,257
3,238
3,789
51.9
55.1
30.9
38.0
32.2
26.2
9.2
8.1
30.0
31.0
11.6
9.8
Hindustan Media
Neutral
255
-
1,870
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
Accumulate
435
500
2,596
667
727
27.7
27.7
18.6
20.1
23.4
21.7
3.6
3.7
15.6
17.3
3.4
3.2
Music Broadcast Limited Accumulate
378
434
2,157
271
317
91.0
109.0
6.0
10.0
63.0
37.8
3.9
3.6
6.5
9.3
7.5
6.2
Metals & Mining
Coal India
Neutral
266
-
165,396
82,301
91,235
17.0
18.0
17.1
20.5
15.6
13.0
2.9
2.8
45.0
55.0
1.7
1.5
Hind. Zinc
Neutral
309
-
130,605
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
271
-
60,893
102,350
105,355
13.5
14.5
21.5
24.5
12.6
11.1
1.7
1.5
15.0
15.2
1.2
1.1
JSW Steel
Neutral
266
-
64,250
64,500
68,245
21.1
21.5
20.1
21.2
13.2
12.5
2.4
2.1
-
-
1.7
1.6
NMDC
Neutral
141
-
44,532
10,209
11,450
47.0
48.0
11.1
12.1
12.7
11.6
1.8
1.7
-
-
3.9
3.5
SAIL
Neutral
93
-
38,286
54,100
63,555
3.0
10.0
(10.0)
1.5
61.8
1.2
1.2
-
-
1.7
1.5
Vedanta
Neutral
325
-
120,976
81,206
87,345
28.0
29.0
26.5
33.5
12.3
9.7
2.8
2.4
-
-
2.2
1.9
Tata Steel
Neutral
724
-
70,287
121,445
126,500
16.2
17.2
65.4
81.3
11.1
8.9
1.8
1.5
-
-
1.1
1.0
Oil & Gas
GAIL
Neutral
500
-
84,557
53,115
52,344
14.2
15.3
30.0
31.1
16.7
16.1
2.1
1.9
-
-
1.3
1.3
ONGC
Neutral
192
-
246,912
83,111
84,934
44.2
44.9
16.4
16.9
11.7
11.4
1.4
1.3
-
-
2.8
2.8
Indian Oil Corp
Neutral
390
-
189,235
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
912
-
592,854
257,711
267,438
17.0
18.2
89.1
89.5
10.2
10.2
1.0
0.9
-
-
2.0
1.9
Pharmaceuticals
Alembic Pharma
Accumulate
531
600
10,011
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
2,207
2,341
26,382
6,320
7,341
17.5
19.8
72.7
96.6
30.4
22.8
5.4
4.5
16.7
18.7
4.1
3.5
Aurobindo Pharma
Buy
685
823
40,142
17,086
19,478
22.1
22.0
44.7
51.4
15.3
13.3
3.4
2.7
24.7
22.7
2.5
2.1
Aventis*
Neutral
4,691
-
10,804
2,411
2,698
18.8
18.8
151.6
163.9
30.9
28.6
4.8
3.9
25.4
27.5
4.1
3.4
Cadila Healthcare
Reduce
433
411
44,313
11,365
12,926
20.0
20.0
18.4
20.5
23.5
21.1
5.2
4.3
24.3
22.2
4.0
3.5
Cipla
Sell
612
462
49,242
16,163
18,711
16.6
16.9
20.7
24.3
29.6
25.2
3.5
3.1
12.6
13.1
3.2
2.7
Dr Reddy's
Sell
2,412
2,040
39,988
13,734
15,548
17.7
20.2
69.9
102.0
34.5
23.6
3.1
2.8
9.2
12.4
3.1
2.7
GSK Pharma*
Sell
2,458
2,000
20,822
2,968
3,324
13.8
15.9
37.8
46.3
65.0
53.1
11.4
12.5
16.7
22.4
6.8
6.2
Stock Watch
January 02, 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
284
136
2,619
1,114
1,297
9.9
13.9
5.6
11.4
50.8
24.9
3.8
3.4
7.7
14.5
2.6
2.2
Ipca labs
Neutral
596
-
7,517
3,256
3,647
14.1
17.1
16.2
25.4
36.8
23.5
2.8
2.6
8.0
11.5
2.4
2.1
Lupin
Buy
884
1,091
39,968
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
986
1,057
18,196
1,886
2,016
32.3
29.5
23.2
22.0
42.6
44.7
8.9
7.9
20.9
17.6
9.5
8.9
Sun Pharma
Accumulate
574
630
137,621
28,312
32,153
20.7
23.1
18.5
23.3
31.0
24.6
3.5
3.2
11.5
14.6
4.5
3.9
Syngene International
Accumulate
546
587
10,924
1,394
1,818
33.0
36.5
15.8
21.0
34.5
26.0
6.4
5.3
18.6
20.3
7.8
6.0
Power
Tata Power
Neutral
97
-
26,277
32,547
33,806
20.5
20.5
4.7
5.4
20.7
18.2
2.0
1.7
10.5
10.5
1.8
1.7
NTPC
Neutral
176
-
145,450
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
104,789
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
-
11,891
4,607
5,146
21.0
22.2
7.9
9.8
40.1
32.4
2.5
2.3
10.3
12.0
3.8
3.4
MLIFE
Accumulate
476
522
2,441
487
590
12.3
17.8
21.0
31.2
22.7
15.3
1.2
1.1
5.2
7.4
3.7
3.0
Telecom
Bharti Airtel
Neutral
528
-
211,123
97,903
105,233
36.0
36.3
9.3
11.1
56.8
47.8
2.7
2.6
5.0
5.6
3.1
2.8
Idea Cellular
Neutral
105
-
37,825
35,012
37,689
27.1
27.7
(4.4)
(2.7)
1.6
1.7
(6.8)
(4.6)
2.4
2.2
Others
Abbott India
Neutral
5,513
-
11,715
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
570
639
1,715
1,169
1,286
12.5
12.5
16.0
19.7
35.7
28.9
3.8
3.4
10.7
11.6
1.7
1.5
Bajaj Electricals
Neutral
488
-
4,973
4,646
5,301
6.7
7.6
16.1
22.3
30.3
21.9
5.0
4.2
16.4
19.2
1.1
0.9
Banco Products (India)
Neutral
258
-
1,846
1,530
1,695
13.2
12.7
19.0
20.0
13.6
12.9
2.2
1.9
0.2
0.2
1.1
124.9
Coffee Day Enterprises
Neutral
280
-
5,913
3,494
3,913
17.4
18.0
4.8
5.7
-
49.1
2.5
2.4
-
0.1
2.2
1.9
Ltd
Elecon Engineering
Neutral
105
-
1,177
171
201
15.0
16.2
36.0
43.0
2.9
2.4
0.2
0.2
0.1
0.1
6.3
5.3
Garware Wall Ropes
Neutral
937
-
2,051
928
1,003
15.2
15.2
39.4
43.2
23.8
21.7
3.9
3.4
16.5
15.4
2.1
1.9
Goodyear India*
Neutral
1,091
-
2,516
1,717
1,866
11.8
12.3
47.9
49.8
22.8
21.9
3.5
3.1
15.6
15.7
1.2
166.8
Hitachi
Neutral
2,685
-
7,301
2,355
2,715
10.3
10.8
49.0
60.9
54.8
44.1
12.8
10.1
0.2
0.2
3.1
2.7
HSIL
Neutral
501
-
3,621
2,240
2,670
14.6
15.0
17.0
22.0
29.5
22.8
2.4
2.3
0.1
0.1
1.8
1.5
Interglobe Aviation
Neutral
1,203
-
46,233
22,570
27,955
14.2
15.0
63.6
81.8
18.9
14.7
10.0
8.4
0.5
0.6
1.7
1.3
Jyothy Laboratories
Neutral
377
-
6,851
1,781
2,044
14.1
15.0
9.4
10.5
40.3
35.9
8.6
8.1
0.2
0.2
4.1
3.5
Linc Pen & Plastics
Neutral
389
-
576
420
462
9.3
9.3
15.3
17.1
25.5
22.8
4.3
4.4
16.9
19.5
1.4
1.3
M M Forgings
Neutral
1,175
-
1,418
542
642
20.1
21.0
41.6
56.8
28.3
20.7
3.9
3.3
0.1
0.2
3.0
2.6
Mirza International
Neutral
161
-
1,935
1,148
1,285
18.0
18.0
8.0
9.4
20.0
17.2
3.3
2.8
16.3
16.1
1.8
1.6
Navkar Corporation
Buy
191
265
2,881
561
617
41.5
41.5
11.5
12.7
16.6
15.1
1.8
1.6
10.5
10.4
5.8
5.1
Stock Watch
January 02, 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
1,864
-
2,781
2,317
2,525
11.4
11.1
96.0
105.0
19.4
17.8
3.3
2.9
0.2
0.2
1.2
1.1
Parag Milk Foods
Neutral
298
-
2,506
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
295
-
3,930
1,811
1,992
13.2
13.2
8.1
8.8
36.4
33.5
3.7
4.0
10.1
12.0
2.5
2.3
Relaxo Footwears
Neutral
684
-
8,235
1,981
2,310
13.7
14.5
12.0
15.5
57.0
44.2
11.1
9.0
0.2
0.2
4.2
3.6
Siyaram Silk Mills
Accumulate
745
813
3,493
1,769
1,981
12.7
12.7
22.6
26.2
32.9
28.4
5.1
4.4
15.5
15.5
2.2
1.9
Styrolution ABS India* Neutral
1,050
-
1,847
1,800
1,980
8.0
8.1
42.0
46.2
25.0
22.7
2.8
2.5
0.1
0.1
1.1
1.1
Surya Roshni
Neutral
388
-
1,698
4,870
5,320
7.7
7.8
22.8
28.1
17.0
13.8
2.3
2.0
0.1
0.1
0.6
0.5
TVS Srichakra
Neutral
3,953
-
3,027
2,729
2,893
12.7
12.5
248.5
265.0
15.9
14.9
4.5
3.7
0.3
0.3
1.1
1.0
Visaka Industries
Neutral
656
-
1,041
1,104
1,214
12.1
12.6
31.0
37.9
21.2
17.3
2.6
2.3
0.1
0.1
1.2
1.0
VIP Industries
Accumulate
351
400
4,964
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
829
-
4,091
945
1,154
17.5
17.9
28.7
34.8
28.9
23.9
4.8
4.1
-
-
3.8
3.0
Century Plyboards India Buy
348
400
7,722
2,007
2,510
22.4
22.6
8.4
11.1
41.4
31.3
8.8
7.1
21.3
22.9
4.2
3.4
LT Foods
Accumulate
92
102
2,927
3,287
3,747
11.1
11.5
4.4
5.2
20.8
17.6
3.1
2.5
17.5
17.6
1.4
1.2
Ruchira Papers
Buy
201
244
450
470
532
15.6
15.6
16.5
19.0
12.2
10.6
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 January 01, 2018
Market Outlook
January 02, 2018
Research Team Tel: 022 - 39357800
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