Market Outlook

October 03, 2017

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian markets are likely to open in flat tracking global indices and SGX Nifty.

BSE Sensex

0.0

31,284

US Markets moved mostly over the course of the trading session on Monday, adding

Nifty

0.2

9,789

to the gains posted last week. With the upward move on the day, the major

Mid Cap

0.8

127

15,436

averages reached new record closing highs. The strength on Wall Street came

Small Cap

1.1

174

16,114

following the releasing of a report from the Institute for Supply Management

Bankex

0.1

27,025

showing an unexpected acceleration in the rate of growth in manufacturing activity

in the month of September.

Global Indices

Chg (%)

(Pts)

(Close)

The European markets ended the first day of the new trading week in the green,

extending their recent winning streak to eight straight sessions. Investors were

Dow Jones

0.7

153

22,558

encouraged by official data released over the weekend which showed activity in

Nasdaq

0.3

6,517

China's vast manufacturing sector grew at the fastest pace since 2012 in September.

FTSE

0.9

7,439

Nikkei

0.7

147

20,548

Indian markets erased all early gains to end on a flat note Friday as investors

adopted a cautious stance ahead of a long weekend. Markets will be closed on

Hang Seng

1.6

440

27,994

Monday on account of Mahatma Gandhi Jayanti.

Shanghai Com

0.3

3,349

News Analysis

Advances / Declines

BSE

NSE

 Suzuki Motorcycle India sells 50,785 units in Sept, clocks 33% growth

Advances

1,612

1,088

Detailed analysis is on Pg2

Declines

932

599

Unchanged

168

Investor’s Ready Reckoner

Key Domestic & Global Indicators

Volumes (` Cr)

Stock Watch: Latest investment recommendations on 150+ stocks

BSE#

3,272

Refer Pg7 onwards

NSE

26,276

Top Picks

CMP

Target

Upside

Company

Sector

Rating

(`)

(%)

#Net Inflows (` Cr)

Net

Mtd

Ytd

Blue Star

Capital Goods Accumulate

779

850

9.1

FII

(4,678)

(11,836)

35,452

Dewan Housing FinanceFinancials

Accumulate

550

610

11.0

MFs

4,008

15,826

84,713

Asian Granito

Others

Buy

472

570

20.7

Navkar Corporation

Others

Buy

183

265

45.1

KEI Industries

Capital Goods

Accumulate

325

371

14.1

Top Gainers

Price (`)

Chg (%)

More Top Picks on Pg5

Bbtc

1,288

9.0

Jpassociat

8.4

Key Upcoming Events

Consensus

Redington

158

7.0

Date

Region

Event Description

Reading

Expectations

Ibrealest

221

6.6

Oct04, 2017 India

RBI Repo rate

6.00

Paragmilk

246

5.8

Oct04, 2017 Germany PMI Services

55.60

Oct04, 2017 India

RBI Reverse Repo rate

5.75

Oct04, 2017 India

RBI Cash Reserve ratio

4.00

Top Losers

Price (`)

Chg (%)

Oct05, 2017 US

Initial Jobless claims

272.00

Irb

213

(4.4)

More Events on Pg7

Rcom

(3.5)

Beml

1,587

(3.5)

Ubl

821

(3.2)

Gruh

491

(3.1)

#as on 29^th Sep, 2017

www.angelbroking.com

Market Outlook

October 03, 2017

News Analysis

Suzuki Motorcycle India sells 50,785 units in Sept, clocks 33%

growth

Suzuki Motor Corp arm Suzuki Motorcycle India Private Limited (SMIPL) has

declared its sales number and said it sold 50,785 units a record in India in

September. According to the company, overall, SMIPL clocked a year-on-year

growth of 32.9% with 57,469 units (domestic and exports), drawing significant

gains on its 2016 performance during the same month.

This consistent upward trajectory enabled the company to improve its April-

September (FY 2017-18) performance by 41.7% viz-a-viz last year, with a total

sale of 2,81,182 units in this period.

The company said that September was also a month of aggressive expansion for

Suzuki two-wheelers with 13 new dealership inaugurations, expanding its presence

to 467 dealerships all over India. According to management, the opportunity for

maruti to grow remains huge, as customer's confidence in our products is very

high.

To support the festive rush at its dealerships, the company also rolled-out multiple

benefits for customers like the Suzuki Great Gold Rush, exchange offers, corporate

schemes and financial tie-ups that allow them to take home a Suzuki two-wheeler

at low down payment. Targeting 5 lakh unit sales in 2017-18, the company is set

to build on this momentum especially in centres where there is a strong demand

for premium two-wheelers.

Economic and Political News

 Venkaiah Naidu to open `1,930cr highway projects in Andhra Pradesh

 Fitch lowers India's growth forecast to 6.9% for FY18 from 7.4%

 Real estate demand slowdown: Office space leasing down 7% in Jan-Sep

 Oil falls below $56; Brent posts biggest third-quarter increase since 2004

Corporate News

 Hero MotoCorp crosses 1mn sales mark this festive season

 Idea-Vodafone merger to be completed by March 2018

 Bajaj Auto sales up 14% at 4.28 lakh units in September 2017

 Tata to supply 10,000 electric cars to EESL from Gujarat's Sanand plant

www.angelbroking.com

Market Outlook

October 03, 2017

Top Picks

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

Strong growth in domestic business due to its leadership

in acute therapeutic segment. Alkem expects to launch

Alkem Laboratories

22,009

1,841

2,079

12.9

more products in USA, which bodes for its international

business.

We expect the company would report strong profitability

Asian Granito

1,421

472

570

20.7

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

7,462

779

850

9.1

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

17,234

550

610

11.0

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

8,714

144

180

24.8

Increasing share of CASA will help in NIM

improvement.

High order book execution in EPC segment, rising B2C

KEI Industries

2,529

325

371

14.1

sales and higher exports to boost the revenues and

profitability

Expected to benefit from the lower capex requirement

Music Broadcast

2,158

378

434

14.8

and 15 year long radio broadcast licensing.

Massive capacity expansion along with rail advantage

Navkar Corporation

2,604

183

265

45.1

at ICD as well CFS augurs well for the company

Strong brands and distribution network would boost

Siyaram Silk Mills

2,137

2,279

2,500

9.7

growth going ahead. Stock currently trades at an

inexpensive valuation.

Market leadership in Hindi news genre and no.

viewership ranking in English news genre, exit from the

TV Today Network

2,086

350

435

24.4

radio business, and anticipated growth in ad spends by

corporates to benefit the stock.

After GST, the company is expected to see higher

volumes along with improving product mix. The Gujarat

Maruti Suzuki

2,40,853

7,973

8,658

8.6

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

2,855

530

655

23.6

year; change in borrowing mix will help in NIM

improvement..

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

October 03, 2017

Key Upcoming Events

Global economic events release calendar

Bl oomberg Data

D ate

Time

C ountry

Event Description

Unit

Period

L ast Reporte d

E stimate d

Oct 04, 2017

2:30 PM India

RBI Repo rate

Oct 4

6.00

1:25 PM Germany

PMI Services

Value

Sep F

55.60

2:30 PM India

RBI Reverse Re po rate

Oct 4

5.75

2:30 PM India

RBI Cash Reserve ratio

Oct 4

4.00

Oct 05, 2017

6:00 PM US

Initial Jobless claims

Thousands

Sep 30

272.00

Oct 06, 2017

6:00 PM US

Change in N onfarm payrolls

Thousands

Sep

156.00

75.00

6:00 PM US

Unnemployment rate

Sep

4.40

Oct 10, 2017

India

Imports YoY%

% Change

Sep

21.00

India

Exports YoY%

% Change

Sep

10.30

2:00 PM UK

Industrial Production (YoY)

% Change

Aug

0.40

Oct 12, 2017

Producer Price Index (mom)

% Change

Sep

0.50

5:30 PM India

Industrial Production YoY

% Change

Aug

1.20

Oct 13, 2017

China

Exports YoY%

% Change

Sep

5.60

6:00 PM US

Consumer price index (mom)

% Change

Sep

0.40

0.50

Oct 16, 2017

12: 00 PM India

Monthly Wholesale Prices YoY%

% Change

Sep

3.24

7:00 AM China

Consumer Price Index (YoY)

% Change

Sep

1.80

Oct 17, 2017

2:30 PM Euro Zone

Euro-Zone CPI (YoY)

Sep F

1.50

6:45 PM US

Industrial Production

Sep

(0.90)

2:00 PM UK

CPI (YoY)

% Change

Sep

2.90

Oct 18, 2017

6:00 PM US

Housi ng Starts

Thousands

Sep

1,180.00

6:00 PM US

Building permits

Thousands

Sep

1,272.00

2:00 PM UK

Joble ss claims change

% Change

Sep

(2.80)

Oct 19, 2017

7:30 AM China

Real GDP (YoY)

% Change

6.90

7:30 PM US

Existing home sales

Million

Sep

5.35

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

October 03, 2017

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

10.0

6.0

9.1

5.1

8.8

5.0

9.0

5.0

4.4

8.0

7.9

4.2

7.6

7.5

8.0

7.3

7.2

4.0

3.5

7.0

3.2

2.8

7.0

6.1

3.0

2.4

5.7

6.0

2.0

1.2

5.0

1.0

4.0

3.0

(1.0)

(0.2)

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

(%)

5.0

54.0

4.3

4.2

4.5

3.9

52.0

4.0

3.6

3.7

3.4

3.2

50.0

3.5

3.0

48.0

2.4

2.2

2.5

46.0

2.0

1.5

44.0

1.0

42.0

0.5

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

www.angelbroking.com

Market Outlook

October 03, 2017

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

74,360

4.9

17.5

25.3

Russia

Micex

2,076

2.6

8.3

4.6

India

Nifty

9,789

(1.0)

3.0

12.4

China

Shanghai Composite

3,349

(0.4)

4.8

10.7

South Africa

Top 40

49,610

(0.1)

9.2

9.7

Mexico

Mexbol

50,501

(1.4)

0.9

5.4

Indonesia

LQ45

985

0.2

0.5

8.2

Malaysia

KLCI

1,755

(0.8)

(0.9)

5.1

Thailand

SET 50

1,082

4.6

8.7

14.0

USA

Dow Jones

22,558

3.0

5.7

23.6

FTSE

7,439

0.1

0.8

5.2

Japan

Nikkei

20,401

4.6

0.9

23.3

Germany

DAX

12,903

7.0

3.7

23.0

France

CAC

5,350

5.2

3.4

19.0

Source: Bloomberg, Angel Research, data as of 29^th Sept-17 p68in4

www.angelbroking.com

Stock Watch

October 03, 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 )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Agri / Agri Chemical

Rallis

Neutral

208

4,039

1,873

2,099

15.0

9.5

10.5

21.9

19.8

3.3

3.0

15.8

16.0

2.1

1.9

United Phosphorus

Accumulate

777

820

39,480

18,922

21,949

18.0

18.5

36.2

45.6

21.5

17.0

4.5

3.7

22.7

23.8

2.2

1.9

Auto & Auto Ancillary

Ashok Leyland

Neutral

123

36,011

23,339

27,240

10.1

10.8

4.7

6.2

26.5

19.8

5.3

4.7

20.0

23.6

1.5

1.3

Bajaj Auto

Neutral

3,108

89,940

23,936

27,955

19.5

20.1

142.7

167.3

21.8

18.6

4.7

4.2

21.8

22.8

3.3

2.8

Bharat Forge

Buy

590

875

27,456

7,637

8,755

21.7

23.2

36.1

47.3

16.3

12.5

2.9

2.5

18.5

20.8

3.5

2.9

Eicher Motors

Neutral

31,213

84,971

19,043

22,837

19.5

19.9

835.4

1,019.0

37.4

30.6

14.0

10.8

40.9

37.8

4.3

3.6

Gabriel India

Neutral

197

2,832

1,782

2,033

9.7

10.2

7.1

8.9

27.8

22.3

5.6

4.7

21.0

22.2

1.5

1.3

Hero Motocorp

Accumulate

3,781

4,129

75,509

32,239

36,878

16.0

15.6

184.4

206.5

20.5

18.3

6.4

5.6

31.3

30.7

2.1

1.8

Jamna Auto Industries Neutral

260

2,074

1,441

1,662

14.4

14.8

13.9

17.6

18.7

14.8

5.1

4.1

30.0

31.0

1.4

1.2

Mahindra and Mahindra Neutral

1,254

77,869

46,971

53,816

13.6

14.0

67.7

79.8

18.5

15.7

2.6

2.4

15.0

15.9

1.5

1.3

Maruti

Accumulate

7,973

8,658

240,853

81,825

101,245

15.0

283.5

356.0

28.1

22.4

6.1

5.0

21.9

22.4

2.6

2.0

Minda Industries

Neutral

828

7,158

4,328

5,084

11.0

11.9

27.3

36.4

30.4

22.8

6.4

5.0

23.1

25.6

1.7

1.5

Motherson Sumi

Neutral

336

70,797

55,937

64,445

10.8

11.4

16.9

21.1

19.9

16.0

4.5

25.2

25.4

1.3

1.1

Tata Motors

Neutral

401

115,855

303,167

343,649

11.8

13.8

33.1

54.7

12.1

7.3

2.0

1.6

16.9

23.0

0.4

TVS Motor

Neutral

659

31,284

13,992

16,216

9.0

9.4

17.1

20.3

38.6

32.4

10.3

7.9

29.7

27.7

2.2

1.8

Amara Raja Batteries

Buy

710

858

12,128

6,140

7,122

14.3

15.6

29.3

39.0

24.2

18.2

4.1

3.5

17.1

19.0

2.0

1.7

Exide Industries

Neutral

206

17,472

8,689

9,854

15.1

15.2

9.7

11.0

21.3

18.7

3.8

3.3

15.7

16.1

1.7

1.5

Apollo Tyres

Neutral

245

12,469

15,739

17,326

13.3

14.6

20.4

26.7

12.0

9.2

1.5

1.3

20.4

26.7

1.0

0.9

Ceat

Neutral

1,714

6,934

6,661

7,717

11.1

14.2

116.2

178.2

14.8

9.6

2.6

2.1

15.2

21.3

1.2

1.0

JK Tyres

Neutral

147

3,326

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

2,033

2,525

788

889

16.4

16.5

71.6

81.0

28.4

25.1

8.2

7.6

29.6

31.0

2.9

2.5

Subros

Neutral

237

1,420

1,855

2,135

11.6

11.8

10.3

14.7

23.1

16.2

3.5

3.0

15.8

19.1

1.0

0.8

Capital Goods

BEML

Neutral

1,587

6,610

4,286

5,194

7.1

8.2

42.9

58.1

37.0

27.3

3.0

2.8

7.6

8.7

1.6

1.3

Bharat Electronics

Neutral

163

40,000

10,258

12,470

19.6

19.5

7.3

8.6

22.3

18.9

0.4

20.4

21.9

3.4

2.8

Voltas

Neutral

505

16,700

6,778

8,004

9.6

11.0

17.1

22.4

29.5

22.5

7.0

6.2

17.7

19.8

2.2

1.8

BHEL

Neutral

30,840

33,200

39,167

6.8

9.5

6.2

11.2

13.6

7.5

0.6

4.6

8.0

0.5

0.4

Blue Star

Accumulate

779

850

7,462

5,220

6,207

6.3

6.6

16.8

22.3

46.4

35.0

9.2

8.1

19.9

23.3

1.4

1.2

CG Power and Industrial

Neutral

4,936

6,555

7,292

7.5

0.8

7,875.0

98.4

1.2

0.1

1.2

0.8

Solutions

Greaves Cotton

Neutral

136

3,326

1,778

1,993

14.7

15.1

8.1

9.1

16.8

15.0

3.8

3.5

21.8

23.6

1.6

1.5

www.angelbroking.com

Stock Watch

October 03, 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 )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Capital Goods

KEC International

Accumulate

308

350

7,907

9,779

11,113

9.4

9.8

14.2

18.2

21.7

16.9

4.1

3.4

21.1

22.1

1.1

0.9

KEI Industries

Accumulate

325

371

2,529

3,001

3,391

10.0

13.0

16.1

25.0

20.2

4.6

3.8

18.2

18.7

1.0

0.9

Thermax

Neutral

943

11,240

4,125

4,747

10.3

10.8

26.7

31.5

35.3

30.0

4.0

3.6

11.2

12.0

2.5

2.1

VATech Wabag

Buy

590

681

3,220

3,867

4,126

9.6

10.0

34.9

39.8

16.9

14.8

2.8

2.4

17.7

17.5

0.9

0.8

Cement

ACC

Neutral

1,654

31,063

12,255

13,350

13.5

14.3

58.0

66.2

28.5

25.0

3.4

3.2

11.5

12.2

2.5

2.3

Ambuja Cements

Neutral

266

52,818

10,250

11,450

17.5

19.0

7.2

8.3

36.9

32.1

2.7

2.5

7.0

7.8

4.9

4.3

India Cements

Neutral

172

5,311

6,135

6,750

14.8

15.2

8.5

11.5

20.3

15.0

1.0

4.8

6.2

1.2

1.1

JK Cement

Neutral

956

6,684

4,150

4,775

19.2

20.0

49.0

63.5

19.5

15.1

3.1

2.7

17.0

18.5

2.0

1.7

J K Lakshmi Cement

Neutral

387

4,550

3,422

3,757

15.5

17.0

13.5

23.2

28.6

16.7

3.0

2.6

10.8

15.5

1.7

1.5

Orient Cement

Neutral

154

3,146

2,215

3,233

16.8

17.0

5.9

6.9

26.0

22.3

2.0

1.8

10.8

10.1

2.4

1.6

UltraTech Cement

Neutral

3,853

105,772

28,250

35,150

20.2

23.5

77.5

122.2

49.7

31.5

4.2

3.8

9.6

14.8

4.2

3.4

Construction

KNR Constructions

Neutral

206

2,903

1,846

2,203

14.5

12.1

13.7

17.1

15.1

0.9

0.8

17.5

16.7

1.6

1.3

Larsen & Toubro

Neutral

1,141

159,830

95,787

109,476

10.2

11.6

44.5

50.8

25.7

22.5

3.2

3.0

12.9

13.1

2.2

2.0

Gujarat Pipavav Port

Neutral

134

6,454

739

842

61.6

62.7

5.1

6.2

26.2

21.7

3.3

3.2

12.7

14.9

8.2

7.1

PNC Infratech

Accumulate

136

143

3,490

2,040

2,935

13.0

6.4

9.0

21.3

15.1

0.6

0.5

9.7

12.2

1.7

1.2

Simplex Infra

Neutral

453

2,240

6,012

6,619

11.6

11.7

21.1

31.0

21.5

14.6

1.5

1.4

6.5

8.6

0.9

0.8

Sadbhav Engineering

Neutral

294

5,043

3,823

4,426

10.7

10.8

10.3

11.8

28.5

24.9

3.4

3.0

10.1

10.5

1.6

1.4

NBCC

Neutral

213

19,134

9,099

12,706

6.4

7.3

9.6

29.2

22.2

1.3

1.0

27.5

30.5

2.0

1.4

MEP Infra

Neutral

101

1,641

2,403

2,910

18.3

16.8

2.4

6.1

42.9

16.6

16.3

11.0

35.2

55.8

1.8

1.5

SIPL

Neutral

3,410

2,060

2,390

46.8

47.7

(5.8)

(3.1)

3.6

4.1

(14.2)

(2.3)

6.4

6.0

Engineers India

Neutral

149

10,024

1,795

2,611

21.1

22.4

5.9

8.1

25.2

18.4

1.8

1.7

12.9

16.1

4.0

2.6

Financials

Axis Bank

Accumulate

509

580

121,990

32,558

35,843

3.5

3.2

27.8

41.0

18.3

12.4

2.0

1.7

11.4

14.9

Bank of Baroda

Neutral

138

31,682

22,533

26,079

2.4

12.0

20.9

11.4

6.6

0.7

6.6

11.0

Canara Bank

Neutral

308

18,400

17,925

20,235

2.0

2.1

18.5

36.5

16.7

8.4

0.6

3.4

6.2

Can Fin Homes

Neutral

2,655

7,066

586

741

3.5

107.8

141.0

24.6

18.8

5.4

4.4

24.1

25.6

Cholamandalam Inv. &

Accumulate

1,092

1,230

17,072

2,826

3,307

6.3

53.7

64.6

20.4

16.9

3.5

3.0

18.3

18.9

Fin. Co.

Dewan Housing Finance Accumulate

550

610

17,234

2,676

3,383

2.4

2.7

37.4

49.7

14.7

11.1

1.9

1.7

13.8

16.2

Equitas Holdings

Buy

152

235

5,157

1,125

1,380

9.6

9.8

1.5

6.0

101.5

25.4

2.3

2.1

2.4

8.2

Federal Bank

Accumulate

113

125

21,944

4,896

5,930

2.8

3.1

5.4

7.6

21.0

14.9

1.8

1.6

8.5

11.0

www.angelbroking.com

Stock Watch

October 03, 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 )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Financials

GIC Housing

Buy

530

655

2,855

376

477

3.6

3.7

33.0

40.0

16.1

13.3

2.9

2.4

20.0

23.0

HDFC Bank

Neutral

1,803

465,438

55,236

63,253

4.5

4.4

68.9

82.4

26.2

21.9

4.6

3.8

18.7

18.5

ICICI Bank

Accumulate

277

315

177,695

42,361

51,378

3.6

3.9

18.4

25.7

15.1

10.8

1.6

11.3

15.0

Karur Vysya Bank

Buy

144

180

8,714

3,289

3,630

3.7

3.9

10.8

14.1

13.3

10.2

1.6

1.4

12.5

14.7

LIC Housing Finance

Neutral

628

31,685

4,895

6,332

3.4

3.7

50.7

66.8

12.4

9.4

2.5

2.0

21.7

23.8

Punjab Natl.Bank

Neutral

129

27,461

23,708

25,758

2.1

5.9

16.4

22.0

7.9

0.6

3.0

8.3

RBL Bank

Neutral

507

20,944

2,309

2,888

2.6

2.5

16.4

19.1

31.0

26.6

3.9

3.5

13.3

13.8

Repco Home Finance

Buy

629

825

3,935

496

597

4.4

4.2

38.5

48.7

16.4

12.9

2.9

2.4

19.6

20.6

South Ind.Bank

Neutral

5,097

3,195

3,567

3.0

3.1

3.0

3.8

9.4

7.4

0.9

0.8

10.5

11.9

St Bk of India

Neutral

254

219,038

105,827

121,056

2.4

2.5

16.1

25.6

15.8

9.9

1.2

1.1

6.6

9.9

Union Bank

Neutral

127

9,200

14,650

16,225

2.3

23.1

32.5

5.5

3.9

0.4

7.1

9.2

Yes Bank

Neutral

350

80,155

11,088

13,138

3.0

2.9

84.0

99.3

4.2

3.5

0.6

16.3

16.8

FMCG

Akzo Nobel India

Neutral

1,932

9,264

3,164

3,607

13.8

13.7

58.6

67.9

33.0

28.4

8.1

7.1

24.5

25.1

2.8

2.4

Asian Paints

Neutral

1,117

107,147

17,603

20,615

18.6

2,128.9

2,543.3

0.5

0.4

11.1

9.3

28.0

28.9

5.9

5.0

Britannia

Neutral

4,344

52,154

9,690

11,278

14.8

15.4

84.0

101.0

51.7

43.0

18.8

15.0

40.6

39.0

5.3

4.6

Colgate

Neutral

1,058

28,787

4,420

5,074

24.9

25.3

28.6

32.8

37.0

32.3

14.6

11.8

43.8

40.5

6.3

5.4

Dabur India

Neutral

305

53,735

8,346

9,344

19.6

19.9

7.8

9.0

39.1

33.9

7.9

7.1

25.2

24.8

6.0

5.3

GlaxoSmith Con*

Neutral

5,000

21,028

5,072

5,760

18.2

18.4

176.3

199.2

28.4

25.1

6.0

5.4

21.2

21.7

3.5

3.0

Godrej Consumer

Neutral

916

62,389

10,171

11,682

20.8

21.5

21.7

27.1

42.2

33.8

9.5

8.2

22.3

23.4

6.3

5.4

HUL

Neutral

1,175

254,359

37,077

41,508

20.3

21.8

5,189.9

6,318.5

0.2

35.8

30.6

74.8

82.0

6.7

6.0

ITC

Neutral

258

314,557

44,588

49,853

37.0

37.3

9.6

11.0

26.9

23.5

6.6

6.3

25.1

27.3

6.5

5.8

Marico

Neutral

311

40,101

6,788

7,766

18.5

19.2

7.1

8.5

43.8

36.6

15.3

13.1

36.9

38.0

5.8

5.0

Nestle*

Neutral

7,222

69,634

10,083

11,182

20.0

20.9

119.7

141.3

60.3

51.1

212.7

194.4

36.7

39.8

6.6

5.9

Tata Global

Neutral

206

12,989

7,121

7,641

11.9

12.3

6.9

8.0

29.8

25.7

2.0

1.9

6.8

7.2

1.6

1.5

Procter & Gamble

Neutral

8,468

27,489

3,034

3,579

27.1

27.7

167.7

198.8

50.5

42.6

13.6

11.7

28.8

29.5

8.5

7.1

Hygiene

HCL Tech^

Buy

875

1,014

124,790

52,342

57,053

20.9

62.8

67.6

13.9

12.9

3.1

2.7

22.4

20.6

2.1

1.8

Infosys

Buy

899

1,179

206,440

73,963

80,619

26.0

64.4

69.3

14.0

13.0

2.8

2.5

19.7

19.6

2.2

2.0

TCS

Accumulate

2,437

2,651

480,193

127,403

138,870

27.6

144.5

156.0

16.9

15.6

5.0

4.7

29.7

29.8

3.4

3.1

Tech Mahindra

Buy

457

533

44,618

31,015

33,496

15.0

35.6

38.1

12.8

12.0

2.2

2.1

17.0

16.3

1.2

1.1

www.angelbroking.com

Stock Watch

October 03, 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 )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Wipro

Neutral

281

136,730

58,536

61,858

20.3

18.2

19.1

15.4

14.7

2.4

2.1

14.6

13.4

2.3

2.1

Media

D B Corp

Neutral

380

6,983

2,404

2,625

30.5

31.5

23.7

26.9

16.0

14.1

3.8

3.2

23.5

22.8

2.7

2.5

HT Media

Neutral

2,182

2,589

2,830

15.1

15.4

8.3

10.9

11.3

8.6

0.9

0.8

8.4

10.4

0.4

0.3

Jagran Prakashan

Buy

179

225

5,844

2,541

2,835

28.5

28.7

12.7

14.1

12.7

2.9

2.5

21.3

21.4

2.2

1.9

Sun TV Network

Neutral

764

30,090

3,238

3,789

51.9

55.1

30.9

38.0

24.7

20.1

7.1

6.2

30.0

31.0

8.8

7.4

Hindustan Media

Neutral

251

1,841

1,002

1,074

23.3

23.5

29.2

33.8

8.6

7.4

1.3

1.1

15.6

15.4

0.8

0.6

Ventures

TV Today Network

Buy

350

435

2,086

667

727

27.7

18.6

20.1

18.8

17.4

2.9

3.0

15.6

17.3

2.7

2.5

Music Broadcast Limited Accumulate

378

434

2,158

271

317

91.0

109.0

6.0

10.0

63.0

37.8

3.9

3.6

6.5

9.3

7.6

6.2

Metals & Mining

Coal India

Neutral

271

167,972

82,301

91,235

17.0

18.0

17.1

20.5

15.8

13.2

3.0

2.8

45.0

55.0

1.7

1.5

Hind. Zinc

Neutral

296

124,985

22,108

24,555

57.0

58.0

22.1

26.3

13.4

11.3

4.3

3.5

32.0

35.0

4.7

3.9

Hindalco

Neutral

241

54,026

102,350

105,355

13.5

14.5

21.5

24.5

11.2

9.8

1.5

1.3

15.0

15.2

1.1

JSW Steel

Neutral

248

60,032

64,500

68,245

21.1

21.5

20.1

21.2

12.4

11.7

2.3

1.9

1.6

NMDC

Neutral

118

37,207

10,209

11,450

47.0

48.0

11.1

12.1

10.6

9.7

1.5

1.4

3.2

2.9

SAIL

Neutral

22,158

54,100

63,555

3.0

10.0

(10.0)

1.5

35.8

0.7

1.4

1.2

Vedanta

Neutral

314

116,813

81,206

87,345

28.0

29.0

26.5

33.5

11.9

9.4

2.7

2.3

2.2

1.9

Tata Steel

Neutral

651

63,231

121,445

126,500

16.2

17.2

65.4

81.3

10.0

8.0

1.6

1.4

1.0

0.9

Oil & Gas

GAIL

Neutral

419

70,883

53,115

52,344

14.2

15.3

30.0

31.1

14.0

13.5

1.8

1.6

1.1

1.0

ONGC

Neutral

171

218,999

83,111

84,934

44.2

44.9

16.4

16.9

10.4

10.1

1.3

1.2

2.5

Indian Oil Corp

Neutral

401

194,479

396,116

432,560

8.5

8.8

40.1

42.2

10.0

9.5

1.7

1.6

0.6

Reliance Industries

Neutral

782

508,695

257,711

267,438

17.0

18.2

89.1

89.5

8.8

8.7

0.8

1.6

Pharmaceuticals

Alembic Pharma

Buy

505

600

9,514

3,903

4,584

18.2

19.2

21.8

27.2

23.2

18.6

4.2

3.5

19.8

20.6

2.5

2.1

Alkem Laboratories Ltd

Accumulate

1,841

2,079

22,009

6,320

7,341

17.5

19.8

72.7

96.6

25.3

19.1

4.5

3.8

16.7

18.7

3.4

2.9

Aurobindo Pharma

Buy

692

823

40,528

17,086

19,478

22.1

22.0

44.7

51.4

15.5

13.5

3.4

2.8

24.7

22.7

2.5

2.2

Aventis*

Neutral

4,134

9,522

2,508

2,862

16.8

139.9

153.8

29.6

26.9

4.3

3.5

23.5

25.8

3.4

2.8

Cadila Healthcare

Reduce

471

426

48,167

11,584

13,228

20.3

20.4

18.7

21.3

25.2

22.1

5.6

4.6

24.6

22.9

4.0

3.4

Cipla

Sell

585

458

47,070

16,619

19,437

15.4

16.2

19.7

24.3

29.7

24.1

3.4

3.0

12.0

13.2

3.0

2.5

Dr Reddy's

Neutral

2,329

38,620

15,844

17,973

17.6

18.2

91.7

111.0

25.4

21.0

2.9

2.6

11.9

13.0

2.7

2.4

GSK Pharma*

Neutral

2,497

21,152

3,260

3,651

15.0

18.0

46.1

58.6

54.2

42.6

11.1

11.5

20.0

26.5

6.4

5.8

Indoco Remedies

Sell

208

153

1,912

1,154

1,310

14.9

11.3

12.7

18.4

16.3

2.6

2.3

15.0

1.8

1.5

www.angelbroking.com

Stock Watch

October 03, 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 )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Pharmaceuticals

Ipca labs

Accumulate

488

540

6,157

3,593

4,022

14.5

15.5

19.4

25.2

19.4

2.3

2.1

9.5

11.2

1.8

1.6

Lupin

Buy

1,013

1,467

45,778

18,657

21,289

21.3

23.3

52.8

66.7

19.2

15.2

2.9

2.5

16.3

17.5

2.5

2.0

Natco Pharma

Neutral

787

13,719

1,836

1,946

31.8

28.9

22.1

20.6

35.6

38.2

7.2

6.4

20.1

16.7

7.3

6.9

Sun Pharma

Accumulate

503

558

120,730

32,899

36,451

26.9

25.4

31.6

32.3

15.9

15.6

2.8

2.4

18.7

18.8

3.3

2.8

Syngene International

Accumulate

496

557

9,911

1,402

1,823

32.8

36.0

15.9

20.7

31.2

24.0

5.8

4.8

18.7

20.0

7.0

5.4

Power

Tata Power

Neutral

21,043

32,547

33,806

20.5

4.7

5.4

16.6

14.5

1.6

1.4

10.5

1.6

NTPC

Neutral

167

137,905

86,070

101,246

28.3

30.7

12.9

16.2

13.0

10.3

1.3

1.2

10.6

12.4

3.0

2.7

Power Grid

Accumulate

211

223

110,203

29,183

32,946

89.7

90.0

18.0

20.8

11.7

10.1

2.0

1.7

17.7

18.2

7.7

7.2

Real Estate

Prestige Estate

Neutral

273

10,219

4,607

5,146

21.0

22.2

7.9

9.8

34.5

27.8

2.1

2.0

10.3

12.0

3.4

3.1

MLIFE

Accumulate

462

522

2,373

487

590

12.3

17.8

21.0

31.2

22.0

14.8

1.2

1.1

5.2

7.4

3.6

2.9

Telecom

Bharti Airtel

Neutral

389

155,359

97,903

105,233

36.0

36.3

9.3

11.1

41.8

35.2

2.0

1.9

5.0

5.6

2.5

2.3

Idea Cellular

Neutral

27,899

35,012

37,689

27.1

27.7

(4.4)

(2.7)

1.2

1.3

(6.8)

(4.6)

2.1

1.9

zOthers

Abbott India

Neutral

4,214

8,954

3,244

3,723

14.9

16.1

167.5

209.4

25.2

20.1

5.6

4.6

23.7

24.8

2.4

2.0

Asian Granito

Buy

472

570

1,421

1,169

1,286

12.5

16.0

19.7

29.6

24.0

3.2

2.8

10.7

11.6

1.5

1.3

Bajaj Electricals

Accumulate

353

395

3,584

4,646

5,301

6.7

7.6

16.1

22.3

21.9

15.8

3.6

3.1

16.4

19.2

0.8

0.7

Banco Products (India)

Neutral

209

1,492

1,530

1,695

13.2

12.7

19.0

20.0

11.0

10.4

1.8

1.6

0.2

0.9

98.1

Coffee Day Enterprises

Neutral

217

4,478

3,494

3,913

17.4

18.0

4.8

5.7

38.2

1.9

1.8

0.1

1.7

1.5

Ltd

Elecon Engineering

Neutral

646

171

201

15.0

16.2

36.0

43.0

1.6

1.3

0.1

3.2

2.7

Garware Wall Ropes

Neutral

880

1,925

928

1,003

15.2

39.4

43.2

22.3

20.4

3.7

3.1

16.5

15.4

1.9

1.7

Goodyear India*

Neutral

818

1,886

1,717

1,866

11.8

12.3

47.9

49.8

17.1

16.4

2.6

2.3

15.6

15.7

0.8

113.6

Hitachi

Neutral

2,016

5,481

2,355

2,715

10.3

10.8

49.0

60.9

41.1

33.1

9.6

7.6

0.2

2.4

2.0

HSIL

Neutral

388

2,802

2,240

2,670

14.6

15.0

17.0

22.0

22.8

17.6

1.9

1.8

0.1

1.5

1.2

Interglobe Aviation

Neutral

1,097

39,670

22,570

27,955

14.2

15.0

63.6

81.8

17.3

13.4

9.1

7.7

0.5

0.6

1.4

1.1

Jyothy Laboratories

Neutral

404

7,345

1,781

2,044

14.1

15.0

9.4

10.5

43.2

38.5

9.2

8.6

0.2

4.3

3.7

Linc Pen & Plastics

Neutral

226

334

420

462

9.3

15.3

17.1

14.8

13.2

2.5

2.6

16.9

19.5

0.8

M M Forgings

Neutral

647

781

542

642

20.1

21.0

41.6

56.8

15.6

11.4

2.1

1.8

0.1

0.2

1.9

1.6

Mirza International

Neutral

159

1,910

1,148

1,285

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

183

265

2,604

561

617

41.5

11.5

12.7

15.9

14.4

1.7

1.5

10.5

10.4

5.3

4.6

Nilkamal

Neutral

1,550

2,313

2,317

2,525

11.4

11.1

96.0

105.0

16.2

14.8

2.7

2.4

0.2

1.0

0.9

www.angelbroking.com

Stock Watch

October 03, 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 )

FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E

zOthers

Parag Milk Foods

Neutral

246

2,068

1,987

2,379

7.6

9.0

12.4

18.3

19.8

13.4

2.8

2.5

8.2

13.2

1.2

1.0

Radico Khaitan

Neutral

167

2,220

1,811

1,992

13.2

8.1

8.8

20.6

18.9

2.1

2.3

10.1

12.0

1.6

1.4

Relaxo Footwears

Neutral

523

6,282

1,981

2,310

13.7

14.5

12.0

15.5

43.6

33.7

8.5

6.9

0.2

3.2

2.8

Siyaram Silk Mills

Accumulate

2,279

2,500

2,137

1,769

1,981

12.7

113.1

131.1

20.2

17.4

3.1

2.7

15.5

1.4

1.2

Styrolution ABS India* Neutral

893

1,570

1,800

1,980

8.0

8.1

42.0

46.2

21.3

19.3

2.4

2.1

0.1

1.0

0.9

Surya Roshni

Neutral

295

1,291

4,870

5,320

7.7

7.8

22.8

28.1

13.0

10.5

1.7

1.5

0.1

0.5

0.4

TVS Srichakra

Neutral

3,060

2,343

2,729

2,893

12.7

12.5

248.5

265.0

12.3

11.6

3.5

2.8

0.3

0.9

0.8

Visaka Industries

Neutral

594

943

1,104

1,214

12.1

12.6

31.0

37.9

19.2

15.7

2.3

2.1

0.1

1.1

1.0

VIP Industries

Buy

250

300

3,532

1,450

1,693

10.4

10.5

6.5

7.8

38.2

32.0

8.1

7.1

21.1

22.1

2.4

2.1

Navin Fluorine

Neutral

698

3,442

945

1,154

22.4

22.6

28.7

34.8

24.3

20.1

4.0

3.4

3.2

2.5

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on September 29, 2017

www.angelbroking.com

Market Outlook

October 03, 2017

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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

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