Market Outlook
January 04, 2018
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open positive tracking global indices and SGX Nifty.
BSE Sensex
(0.1)
(19)
33,793
US Stocks moved mostly higher during the trading, adding to the gains posted in the
Nifty
0.0
1
10,443
previous session. With the continued upward move on the day, the major averages
Mid Cap
0.5
94
17,819
climbed to new record closing highs. The continued strength on Wall Street came as
Small Cap
1.0
187
19,345
upbeat data added to recent optimism about the economic outlook. The Dow Jones
Bankex
0.2
44
28,633
is up 0.4% to close at 24,923 and the Nasdaq Composite or 0.8%, to 7,066.
U.K. shares were marginally lower in choppy trade as the pound held firm amid
Global Indices
Chg (%)
(Pts)
(Close)
broad dollar weakness, offsetting an upbeat trading update from clothing retailer
Dow Jones
0.4
99
24,923
Next Plc. The FTSE 100 is up by 0.3% to close at 7,671.
Nasdaq
0.8
59
7,066
On domestic front, Indian shares gave up earlier gains to finish on a flat note
FTSE
0.3
23
7,671
despite firm cues from global markets. The Sensex ended on a flat note at 33,793,
Nikkei
2.3
535
23,300
having a slightly downside of 0.1%. The Nifty ended at 10,443.
Hang Seng
0.1
39
30,600
Shanghai Com
0.2
7
3,376
News Analysis
VST Tillers Tractors surges 9% on strong December sales
Advances / Declines
BSE
NSE
Detailed analysis on Pg2
Advances
1,894
1,182
Investor’s Ready Reckoner
Declines
1,018
605
Unchanged
111
64
Key Domestic & Global Indicators
Stock Watch: Latest investment recommendations on 150+ stocks
Refer Pg5 onwards
Volumes (` Cr)
BSE
4,784
Top Picks
NSE
33,291
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
Blue Star
Capital Goods Accumulate
818
867
6.0
Net Inflows (` Cr)
Net
Mtd
Ytd
Dewan Housing Finance
Financials
Buy
588
712
21.2
FII
619
608
608
Asian Granito
Other
Accumulate
572
639
11.7
Navkar Corporation
Other
Buy
203
265
30.5
*MFs
1,012
6,114 1,16,352
KEI Industries
Capital Goods
Buy
377
436
15.6
More Top Picks on Pg4
Top Gainers
Price (`)
Chg (%)
Il&Fstrans
93
13.9
Key Upcoming Events
Previous
Consensus
Bajajelec
535
9.2
Date
Region
Event Description
Reading
Expectations
Jindalstel
220
8.1
Jan04
US
Initial Jobless claims
245.00
242.00
Adanient
176
7.5
Jan04
US
Change in Nonfarm payrolls
228.00
190.00
Jan05
Germany PMI Services
55.80
55.80
Navkarcorp
203
7.5
Jan05
US
Unnemployment rate
4.10
4.10
Jan08
India
Imports YoY%
19.60
Top Losers
Price (`)
Chg (%)
More Events on Pg7
Rcom
31
(5.6)
Beml
1,524
(3.4)
Cox&Kings
268
(3.0)
Drreddy
2,336
(3.0)
Wipro
310
(2.7)
As on January 03 2018
Market Outlook
January 04, 2018
News Analysis
VST Tillers Tractors surges 9% on strong December sales
The company recorded a strong sales growth of 79% at 3,615 units in the month
of December 2017. It had sold total 2,018 units in December 2016 and 2,922
units in November 2017.The sales of power tillers more-than-doubled as the
company has sold 3,004 units of power tillers for the month, against 1,407 units
sold in the same month last year. Tractors sales of the company remained
unchanged at 611 units in both the months.
VST Tillers Tractors was promoted by VST Motors as a joint venture with Mitsubishi
Heavy Industries Ltd, Japan. The company is now the largest manufacturer of
power tillers in India.
Economic and Political News
Railways set Dec 2018 as target to link locomotives via ISRO satellites.
Government initiating programmes under Digital India for IT sector growth.
Govt approves Rs 53bn Jal Vikas Marg Project on NW 1; completion by
2023
Corporate News
SRL becomes first diagnostics firm to record Rs 10 billion in revenue
SAP integrates Concur to deliver connected experiences to customers
Mahindra tractor sales up 30% in December at 18,288 units
NALCO lines up 3 projects, invests Rs 250bn
Flipkart's logistics arm Ekart Logistics raises Rs 16 bn from Klick2Shop
Market Outlook
January 04, 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
26,460
2,213
2,341
5.8
more products in USA, which bodes for its international
business.
We expect the company would report strong profitability
Asian Granito
1,722
572
639
11.7
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
7,843
818
867
6.0
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
18,429
588
712
21.2
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
8,739
121
180
48.6
Increasing share of CASA will help in NIM
improvement.
High order book execution in EPC segment, rising B2C
KEI Industries
2,955
377
436
15.6
sales and higher exports to boost the revenues and
profitability
Expected to benefit from the lower capex requirement
Music Broadcast
2,159
378
434
14.7
and 15 year long radio broadcast licensing.
Massive capacity expansion along with rail advantage
Navkar Corporation
3,056
203
265
30.5
at ICD as well CFS augur well for the company
Strong brands and distribution network would boost
Siyaram Silk Mills
3,349
714
813
13.8
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
2,565
430
500
16.3
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
2,84,461
9,417
10,619
12.8
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
2,467
458
655
43.0
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
7,613
343
400
16.7
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
3,091
97
102
5.5
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
462
206
244
18.3
& 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 04, 2018
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
Jan 04, 2018
2:25 PM Germany
Unempl oyment change (000's)
Thousands
Dec
(18.00)
(13.00)
2:25 PM Germany
PMI Services
Value
Dec F
55.80
55.80
Jan 05, 2018
3:30 PM Euro Zone
Euro-Zone Consumer Confidence
Value
Dec F
0.50
7:00 PM US
Change in N onfarm payrolls
Thousands
Dec
228.00
188.00
Jan 08, 2018
7:00 PM US
Unnemployment rate
%
Dec
4.10
4.10
Jan 10, 2018
3:00 PM UK
Industrial Production (YoY)
% Change
Nov
3.60
India
Imports YoY%
% Change
Dec
19.60
India
Exports YoY%
% Change
Dec
30.60
7:00 AM China
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
10.00
7:00 PM US
Consumer price index (mom)
% Change
Dec
0.40
0.20
Jan 15, 2018
12: 00 PM India
Monthly Wholesale Prices YoY%
% Change
Dec
3.93
Jan 16, 2018
3:00 PM UK
CPI (YoY)
% Change
Dec
3.10
Jan 17, 2018
7:45 PM US
Industrial Production
%
Dec
0.20
3:30 PM Euro Zone
Euro-Zone CPI (YoY)
%
Dec F
1.50
Jan 18, 2018
7:00 PM US
Housi ng Starts
Thousands
Dec
1,297.00
7:00 PM US
Building permits
Thousands
Dec
1,303.00
7:30 AM China
Industrial Production (YoY)
% Change
Dec
6.10
7:30 AM China
Real GDP (YoY)
% Change
4Q
6.80
Jan 24, 2018
8:30 PM US
Existing home sales
Million
Dec
5.81
3:00 PM UK
Joble ss claims change
% Change
Dec
5.90
Jan 25, 2018
8:30 PM US
New home sales
Thousands
Dec
733.00
6:15 PM Euro Zone
ECB announces interest rates
%
Jan 25
-
Source: Bloomberg, Angel Research
Market Outlook
January 04, 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 04, 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)
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
January 04, 2018
Exhibit 4: Relative performance of indices across globe
Returns (%)
C ountry
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
77,995
7.3
4.9
33.1
Russia
Micex
2,153
2.5
3.7
(4.9)
India
Nifty
10,443
3.2
5.9
27.6
China
Shanghai Composite
3,369
2.0
1.1
8.2
South Africa
Top 40
52,832
(2.1)
6.5
20.3
Mexico
Mexbol
49,782
4.5
(0.7)
7.9
Indonesia
LQ45
1,057
3.5
7.1
19.8
Malaysia
KLCI
1,793
4.2
2.1
10.4
Thailand
SET 50
1,156
6.0
8.2
23.2
USA
Dow Jones
24,923
2.7
10.5
25.0
UK
FTSE
7,671
3.8
3.1
6.6
Japan
Nikkei
22,765
0.7
12.3
17.4
Germany
DAX
12,978
(0.6)
2.2
12.0
France
CAC
5,331
(1.2)
(0.4)
9.1
Source: Bloomberg, Angel Research p68in4
Stock Watch
January 04, 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
5,245
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
775
820
39,415
18,922
21,949
18.0
18.5
36.2
45.6
21.4
17.0
4.5
3.7
22.7
23.8
2.2
1.9
Auto & Auto Ancillary
Ashok Leyland
Neutral
125
-
36,442
23,339
27,240
10.1
10.8
4.7
6.2
26.8
20.0
5.4
4.7
20.0
23.6
1.5
1.3
Bajaj Auto
Neutral
3,247
-
93,970
23,936
27,955
19.5
20.1
142.7
167.3
22.8
19.4
5.0
4.4
21.8
22.8
3.5
3.0
Bharat Forge
Buy
732
875
34,097
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
28,814
-
78,481
19,043
22,837
19.5
19.9
835.4
1,019.0
34.5
28.3
12.9
9.9
40.9
37.8
4.0
3.3
Gabriel India
Neutral
198
-
2,843
1,782
2,033
9.7
10.2
7.1
8.9
27.9
22.4
5.6
4.8
21.0
22.2
1.5
1.3
Hero Motocorp
Accumulate
3,751
4,129
74,919
32,239
36,878
16.0
15.6
184.4
206.5
20.4
18.2
6.4
5.6
31.3
30.7
2.1
1.8
Jamna Auto Industries Neutral
81
-
3,222
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
755
-
93,818
46,971
53,816
13.6
14.0
67.7
79.8
11.2
9.5
1.6
1.4
15.0
15.9
1.9
1.6
Maruti
Accumulate
9,417
10,619
284,461
79,470
95,208
15.9
17.2
281.7
363.8
33.4
25.9
7.3
5.9
21.7
22.8
3.2
2.6
Minda Industries
Neutral
1,253
-
10,831
4,328
5,084
11.0
11.9
27.3
36.4
46.0
34.4
9.7
7.6
23.1
25.6
2.6
2.2
Motherson Sumi
Neutral
374
-
78,681
55,937
64,445
10.8
11.4
16.9
21.1
22.1
17.8
4.9
5.1
25.2
25.4
1.5
1.2
Tata Motors
Neutral
433
-
125,080
303,167
343,649
11.8
13.8
33.1
54.7
13.1
7.9
2.1
1.7
16.9
23.0
0.5
0.4
TVS Motor
Neutral
770
-
36,601
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
846
-
14,452
6,140
7,122
14.3
15.6
29.3
39.0
28.9
21.7
4.9
4.1
17.1
19.0
2.4
2.0
Exide Industries
Neutral
223
-
18,951
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
270
-
15,437
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
1,947
-
7,874
6,661
7,717
11.1
14.2
116.2
178.2
16.8
10.9
2.9
2.4
15.2
21.3
1.3
1.1
JK Tyres
Neutral
149
-
3,369
8,318
9,239
16.2
16.4
21.0
27.5
7.1
5.4
1.4
1.1
19.1
20.4
0.9
0.7
Swaraj Engines
Neutral
2,148
-
2,669
788
889
16.4
16.5
71.6
81.0
30.0
26.5
8.7
8.0
29.6
31.0
3.0
2.6
Subros
Neutral
308
-
1,847
1,855
2,135
11.6
11.8
10.3
14.7
30.0
21.0
4.6
3.9
15.8
19.1
1.2
1.0
Capital Goods
BEML
Neutral
1,524
-
6,345
4,286
5,194
7.1
8.2
42.9
58.1
35.5
26.2
2.9
2.6
7.6
8.7
1.5
1.2
Bharat Electronics
Neutral
181
-
44,484
10,258
12,470
19.6
19.5
7.3
8.6
24.8
21.1
0.5
0.4
20.4
21.9
3.8
3.1
Voltas
Neutral
642
-
21,238
6,778
8,004
9.6
11.0
17.1
22.4
37.5
28.7
9.0
7.9
17.7
19.8
2.8
2.4
BHEL
Neutral
98
-
36,072
33,200
39,167
6.8
9.5
6.2
11.2
15.9
8.8
0.7
0.7
4.6
8.0
0.7
0.5
Blue Star
Accumulate
818
867
7,843
5,220
6,207
6.3
6.6
16.8
22.3
48.7
36.7
9.7
8.5
19.9
23.3
1.5
1.2
CG Power and Industrial
Neutral
91
-
5,716
6,555
7,292
7.5
7.5
-
0.8
9,120.0
114.0
1.4
1.4
0.1
1.2
1.0
0.9
Solutions
Greaves Cotton
Neutral
140
-
3,419
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 04, 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
373
-
9,579
9,779
11,113
9.4
9.8
14.2
18.2
26.2
20.5
5.0
4.1
21.1
22.1
1.2
1.1
KEI Industries
Buy
377
436
2,955
3,001
3,391
10.0
10.0
13.0
16.1
29.0
23.4
5.3
4.4
18.2
18.7
1.2
1.0
Thermax
Neutral
1,237
-
14,735
4,125
4,747
10.3
10.8
26.7
31.5
46.3
39.3
5.2
4.7
11.2
12.0
3.3
2.9
VATech Wabag
Accumulate
632
681
3,454
3,867
4,126
9.6
10.0
34.9
39.8
18.1
15.9
3.0
2.6
17.7
17.5
0.9
0.8
Cement
ACC
Neutral
1,770
-
33,239
12,255
13,350
13.5
14.3
58.0
66.2
30.5
26.7
3.6
3.4
11.5
12.2
2.7
2.5
Ambuja Cements
Neutral
272
-
54,059
10,250
11,450
17.5
19.0
7.2
8.3
37.8
32.8
2.7
2.6
7.0
7.8
5.1
4.5
India Cements
Neutral
187
-
5,759
6,135
6,750
14.8
15.2
8.5
11.5
22.0
16.3
1.1
1.0
4.8
6.2
1.3
1.1
JK Cement
Neutral
1,116
-
7,800
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
442
-
5,206
3,422
3,757
15.5
17.0
13.5
23.2
32.8
19.1
3.4
2.9
10.8
15.5
1.9
1.7
Orient Cement
Neutral
169
-
3,458
2,215
3,233
16.8
17.0
5.9
6.9
28.6
24.5
2.2
2.0
10.8
10.1
2.6
1.7
Prism Cement
Accumulate
116
131
5,824
5,155
5,616
7.0
7.0
2.0
3.0
57.9
38.6
5.3
4.6
10.0
13.8
1.4
1.3
UltraTech Cement
Neutral
4,295
-
117,906
28,250
35,150
20.2
23.5
77.5
122.2
55.4
35.1
4.7
4.2
9.6
14.8
4.6
3.7
Construction
KNR Constructions
Neutral
313
-
4,401
1,846
2,203
14.5
14.5
12.1
13.7
25.9
22.9
1.4
1.2
17.5
16.7
2.4
2.0
Larsen & Toubro
Neutral
1,276
-
178,793
95,787
109,476
10.2
11.6
44.5
50.8
28.7
25.2
3.6
3.3
12.9
13.1
2.4
2.1
Gujarat Pipavav Port
Neutral
138
-
6,664
739
842
61.6
62.7
5.1
6.2
27.0
22.4
3.4
3.3
12.7
14.9
8.5
7.3
PNC Infratech
Neutral
206
-
5,276
2,040
2,935
13.0
13.0
6.4
9.0
32.1
22.9
0.8
0.7
9.7
12.2
2.6
1.9
Simplex Infra
Neutral
584
-
2,888
6,012
6,619
11.6
11.7
21.1
31.0
27.7
18.9
1.9
1.8
6.5
8.6
1.0
0.9
Sadbhav Engineering
Neutral
417
-
7,158
3,823
4,426
10.7
10.8
10.3
11.8
40.5
35.4
4.9
4.3
10.1
10.5
2.2
1.9
NBCC
Neutral
243
-
21,911
9,099
12,706
6.4
6.4
7.3
9.6
33.4
25.5
1.5
1.2
27.5
30.5
2.3
1.6
MEP Infra
Neutral
100
-
1,621
2,403
2,910
18.3
16.8
2.4
6.1
42.4
16.4
16.1
10.8
35.2
55.8
1.8
1.5
SIPL
Neutral
144
-
5,063
2,060
2,390
46.8
47.7
(5.8)
(3.1)
5.4
6.1
(14.2)
(2.3)
7.2
6.7
Engineers India
Neutral
199
-
13,440
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
560
-
143,667
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
158
-
36,337
22,533
26,079
2.4
2.4
12.0
20.9
13.1
7.6
0.9
0.8
6.6
11.0
-
-
Canara Bank
Neutral
353
-
21,093
17,925
20,235
2.0
2.1
18.5
36.5
19.1
9.7
0.7
0.7
3.4
6.2
-
-
Can Fin Homes
Neutral
476
-
6,341
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
1,307
-
20,423
2,826
3,307
6.3
6.3
53.7
64.6
24.4
20.2
4.1
3.5
18.3
18.9
-
-
Fin. Co.
Dewan Housing Finance Buy
588
712
18,429
2,676
3,383
2.4
2.7
37.4
49.7
15.7
11.8
2.1
1.8
13.8
16.2
-
-
Equitas Holdings
Buy
145
235
4,919
1,125
1,380
9.6
9.8
1.5
6.0
96.5
24.1
2.2
2.0
2.4
8.2
-
-
Stock Watch
January 04, 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
Buy
108
125
21,186
4,896
5,930
2.8
3.1
5.4
7.6
20.1
14.2
1.7
1.6
8.5
11.0
-
-
GIC Housing
Buy
458
655
2,467
376
477
3.6
3.7
33.0
40.0
13.9
11.5
2.5
2.1
20.0
23.0
-
-
HDFC Bank
Neutral
1,853
-
479,859
55,236
63,253
4.5
4.4
68.9
82.4
26.9
22.5
4.7
3.9
18.7
18.5
-
-
ICICI Bank
Neutral
315
-
202,327
42,361
51,378
3.6
3.9
18.4
25.7
17.1
12.3
1.9
1.8
11.3
15.0
-
-
Karur Vysya Bank
Buy
121
180
8,739
3,289
3,630
3.7
3.9
10.8
14.1
11.2
8.6
1.3
1.2
12.5
14.7
-
-
LIC Housing Finance
Accumulate
567
630
28,612
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
167
-
40,459
23,708
25,758
2.1
2.1
5.9
16.4
28.4
10.2
0.8
0.8
3.0
8.3
-
-
RBL Bank
Neutral
515
-
21,482
2,309
2,888
2.6
2.5
16.4
19.1
31.5
27.0
4.0
3.5
13.3
13.8
-
-
Repco Home Finance
Buy
693
825
4,334
496
597
4.4
4.2
38.5
48.7
18.0
14.2
3.2
2.7
19.6
20.6
-
-
South Ind.Bank
Neutral
31
-
5,625
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
303
-
261,422
105,827
121,056
2.4
2.5
16.1
25.6
18.8
11.8
1.5
1.3
6.6
9.9
-
-
Union Bank
Neutral
143
-
12,250
14,650
16,225
2.3
2.3
23.1
32.5
6.2
4.4
0.5
0.4
7.1
9.2
-
-
Yes Bank
Neutral
316
-
72,594
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
1,855
-
8,897
3,164
3,607
13.8
13.7
58.6
67.9
31.7
27.3
7.8
6.9
24.5
25.1
2.7
2.3
Asian Paints
Neutral
1,141
-
109,454
17,603
20,615
18.6
18.6
2,128.9
2,543.3
0.5
0.5
11.3
9.5
28.0
28.9
6.0
5.1
Britannia
Neutral
4,665
-
56,009
9,690
11,278
14.8
15.4
84.0
101.0
55.5
46.2
20.2
16.1
40.6
39.0
5.7
4.9
Colgate
Neutral
1,096
-
29,816
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
354
-
62,375
8,346
9,344
19.6
19.9
7.8
9.0
45.4
39.3
9.2
8.3
25.2
24.8
7.1
6.2
GlaxoSmith Con*
Neutral
6,390
-
26,872
5,072
5,760
18.2
18.4
176.3
199.2
36.2
32.1
7.7
7.0
21.2
21.7
4.6
4.0
Godrej Consumer
Neutral
985
-
67,104
10,171
11,682
20.8
21.5
21.7
27.1
45.4
36.3
10.2
8.8
22.3
23.4
6.7
5.8
HUL
Neutral
1,350
-
292,226
37,077
41,508
20.3
21.8
5,189.9
6,318.5
0.3
0.2
41.2
35.2
74.8
82.0
7.7
6.9
ITC
Neutral
261
-
318,171
44,588
49,853
37.0
37.3
9.6
11.0
27.2
23.7
6.7
6.4
25.1
27.3
6.6
5.9
Marico
Neutral
321
-
41,466
6,788
7,766
18.5
19.2
7.1
8.5
45.3
37.8
15.8
13.6
36.9
38.0
6.0
5.2
Nestle*
Neutral
7,855
-
75,738
10,083
11,182
20.0
20.9
119.7
141.3
65.6
55.6
231.3
211.4
36.7
39.8
7.2
6.4
Tata Global
Neutral
311
-
19,641
7,121
7,641
11.9
12.3
6.9
8.0
45.1
38.9
3.0
2.9
6.8
7.2
2.6
2.4
Procter & Gamble
Neutral
9,400
-
30,513
3,034
3,579
27.1
27.7
167.7
198.8
56.1
47.3
15.0
13.0
28.8
29.5
9.5
7.9
Hygiene
IT
HCL Tech^
Accumulate
897
1,014
127,972
50,009
54,608
22.1
22.1
62.8
67.6
14.3
13.3
3.2
2.7
22.4
20.6
2.2
1.9
Infosys
Accumulate
1,019
1,120
234,087
70,333
75,960
26.0
26.0
61.7
65.9
16.5
15.5
3.1
2.9
18.9
18.7
2.7
2.5
TCS
Reduce
2,635
2,442
504,453
123,384
134,488
26.1
26.1
133.2
143.7
19.8
18.3
5.5
5.1
27.6
27.8
3.7
3.4
Stock Watch
January 04, 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
519
-
50,726
30,545
32,988
15.0
15.0
35.2
37.6
14.8
13.8
2.5
2.3
16.8
16.2
1.4
1.3
Wipro
Neutral
310
-
150,965
54,164
56,544
22.3
22.3
18.8
19.5
16.5
15.9
2.6
2.3
15.0
13.6
2.0
1.8
Media
D B Corp
Neutral
354
-
6,522
2,404
2,625
30.5
31.5
23.7
26.9
15.0
13.2
3.5
3.0
23.5
22.8
2.6
2.3
HT Media
Neutral
103
-
2,386
2,589
2,830
15.1
15.4
8.3
10.9
12.4
9.4
1.0
0.9
8.4
10.4
0.5
0.3
Jagran Prakashan
Buy
179
225
5,588
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
1,003
-
39,507
3,238
3,789
51.9
55.1
30.9
38.0
32.4
26.4
9.3
8.1
30.0
31.0
11.7
9.9
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
Buy
430
500
2,565
667
727
27.7
27.7
18.6
20.1
23.1
21.4
3.6
3.7
15.6
17.3
3.4
3.1
Music Broadcast Limited Accumulate
378
434
2,159
271
317
91.0
109.0
6.0
10.0
63.1
37.8
3.9
3.6
6.5
9.3
7.6
6.2
Metals & Mining
Coal India
Neutral
272
-
169,028
82,301
91,235
17.0
18.0
17.1
20.5
15.9
13.3
3.0
2.8
45.0
55.0
1.7
1.5
Hind. Zinc
Neutral
312
-
131,809
22,108
24,555
57.0
58.0
22.1
26.3
14.1
11.9
4.6
3.7
32.0
35.0
5.0
4.1
Hindalco
Neutral
276
-
62,049
102,350
105,355
13.5
14.5
21.5
24.5
12.9
11.3
1.8
1.5
15.0
15.2
1.2
1.1
JSW Steel
Neutral
268
-
64,830
64,500
68,245
21.1
21.5
20.1
21.2
13.3
12.7
2.4
2.1
-
-
1.7
1.7
NMDC
Neutral
149
-
47,205
10,209
11,450
47.0
48.0
11.1
12.1
13.4
12.3
1.9
1.8
-
-
4.1
3.7
SAIL
Neutral
94
-
38,740
54,100
63,555
3.0
10.0
(10.0)
1.5
62.5
1.3
1.2
-
-
1.7
1.5
Vedanta
Neutral
333
-
123,597
81,206
87,345
28.0
29.0
26.5
33.5
12.6
9.9
2.9
2.5
-
-
2.3
2.0
Tata Steel
Neutral
733
-
71,219
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
491
-
83,051
53,115
52,344
14.2
15.3
30.0
31.1
16.4
15.8
2.1
1.9
-
-
1.3
1.3
ONGC
Neutral
194
-
248,580
83,111
84,934
44.2
44.9
16.4
16.9
11.8
11.5
1.4
1.3
-
-
2.9
2.8
Indian Oil Corp
Neutral
386
-
187,584
396,116
432,560
8.5
8.8
40.1
42.2
9.6
9.2
1.7
1.5
-
-
0.6
0.6
Reliance Industries
Neutral
916
-
595,976
257,711
267,438
17.0
18.2
89.1
89.5
10.3
10.2
1.0
0.9
-
-
2.0
1.9
Pharmaceuticals
Alembic Pharma
Accumulate
524
600
9,872
3,346
3,915
19.6
19.2
21.0
23.9
24.9
21.9
4.4
3.7
19.1
18.4
3.0
2.6
Alkem Laboratories Ltd
Accumulate
2,213
2,341
26,460
6,320
7,341
17.5
19.8
72.7
96.6
30.4
22.9
5.4
4.5
16.7
18.7
4.1
3.5
Aurobindo Pharma
Buy
667
823
39,049
17,086
19,478
22.1
22.0
44.7
51.4
14.9
13.0
3.3
2.7
24.7
22.7
2.4
2.1
Aventis*
Neutral
4,651
-
10,712
2,411
2,698
18.8
18.8
151.6
163.9
30.7
28.4
4.8
3.9
25.4
27.5
4.0
3.4
Cadila Healthcare
Neutral
428
-
43,796
11,365
12,926
20.0
20.0
18.4
20.5
23.3
20.9
5.1
4.2
24.3
22.2
3.9
3.4
Cipla
Sell
607
462
48,864
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
Reduce
2,336
2,052
38,739
13,734
15,548
17.7
20.2
69.9
102.0
33.4
22.9
3.0
2.7
9.2
12.4
3.1
2.7
GSK Pharma*
Sell
2,451
2,000
20,760
2,968
3,324
13.8
15.9
37.8
46.3
64.8
52.9
11.3
12.4
16.7
22.4
6.8
6.2
Stock Watch
January 04, 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
281
136
2,586
1,114
1,297
9.9
13.9
5.6
11.4
50.1
24.6
3.8
3.4
7.7
14.5
2.6
2.2
Ipca labs
Neutral
583
-
7,358
3,256
3,647
14.1
17.1
16.2
25.4
36.0
23.0
2.8
2.5
8.0
11.5
2.3
2.1
Lupin
Buy
878
1,091
39,674
16,240
18,562
21.3
21.7
42.5
49.6
20.7
17.7
2.6
2.3
13.3
13.7
2.5
2.2
Natco Pharma
Accumulate
974
1,057
17,972
1,886
2,016
32.3
29.5
23.2
22.0
42.1
44.2
8.8
7.8
20.9
17.6
9.4
8.8
Sun Pharma
Accumulate
569
630
136,577
28,312
32,153
20.7
23.1
18.5
23.3
30.8
24.4
3.5
3.1
11.5
14.6
4.4
3.8
Syngene International
Neutral
567
-
11,331
1,394
1,818
33.0
36.5
15.8
21.0
35.8
27.0
6.7
5.5
18.6
20.3
8.1
6.2
Power
Tata Power
Neutral
101
-
27,264
32,547
33,806
20.5
20.5
4.7
5.4
21.5
18.8
2.0
1.8
10.5
10.5
1.8
1.8
NTPC
Neutral
177
-
145,945
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
202
223
105,573
29,183
32,946
89.7
90.0
18.0
20.8
11.2
9.7
1.9
1.7
17.7
18.2
7.6
7.0
Real Estate
Prestige Estate
Neutral
322
-
12,088
4,607
5,146
21.0
22.2
7.9
9.8
40.8
32.9
2.5
2.3
10.3
12.0
3.8
3.4
MLIFE
Accumulate
464
522
2,381
487
590
12.3
17.8
21.0
31.2
22.1
14.9
1.2
1.1
5.2
7.4
3.6
2.9
Telecom
Bharti Airtel
Neutral
518
-
207,245
97,903
105,233
36.0
36.3
9.3
11.1
55.8
46.9
2.7
2.5
5.0
5.6
3.1
2.8
Idea Cellular
Neutral
103
-
36,995
35,012
37,689
27.1
27.7
(4.4)
(2.7)
1.6
1.7
(6.8)
(4.6)
2.4
2.1
Others
Abbott India
Neutral
5,438
-
11,556
3,244
3,723
14.9
16.1
167.5
209.4
32.5
26.0
7.2
6.0
23.7
24.8
3.2
2.7
Asian Granito
Accumulate
572
639
1,722
1,169
1,286
12.5
12.5
16.0
19.7
35.8
29.0
3.8
3.4
10.7
11.6
1.7
1.5
Bajaj Electricals
Neutral
535
-
5,456
4,646
5,301
6.7
7.6
16.1
22.3
33.3
24.0
5.4
4.6
16.4
19.2
1.2
1.0
Banco Products (India)
Neutral
257
-
1,838
1,530
1,695
13.2
12.7
19.0
20.0
13.5
12.9
2.2
1.9
0.2
0.2
1.1
124.3
Coffee Day Enterprises
Neutral
273
-
5,769
3,494
3,913
17.4
18.0
4.8
5.7
-
47.9
2.4
2.3
-
0.1
2.1
1.9
Ltd
Elecon Engineering
Neutral
108
-
1,214
171
201
15.0
16.2
36.0
43.0
3.0
2.5
0.3
0.2
0.1
0.1
6.5
5.5
Garware Wall Ropes
Neutral
919
-
2,011
928
1,003
15.2
15.2
39.4
43.2
23.3
21.3
3.8
3.3
16.5
15.4
2.0
1.8
Goodyear India*
Neutral
1,110
-
2,560
1,717
1,866
11.8
12.3
47.9
49.8
23.2
22.3
3.6
3.1
15.6
15.7
1.2
170.6
Hitachi
Neutral
2,630
-
7,151
2,355
2,715
10.3
10.8
49.0
60.9
53.7
43.2
12.6
9.9
0.2
0.2
3.1
2.6
HSIL
Neutral
499
-
3,606
2,240
2,670
14.6
15.0
17.0
22.0
29.3
22.7
2.4
2.3
0.1
0.1
1.8
1.5
Interglobe Aviation
Neutral
1,208
-
46,412
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
379
-
6,895
1,781
2,044
14.1
15.0
9.4
10.5
40.6
36.1
8.6
8.1
0.2
0.2
4.1
3.5
Linc Pen & Plastics
Neutral
401
-
594
420
462
9.3
9.3
15.3
17.1
26.3
23.5
4.4
4.6
16.9
19.5
1.5
1.3
M M Forgings
Neutral
1,152
-
1,390
542
642
20.1
21.0
41.6
56.8
27.7
20.3
3.8
3.2
0.1
0.2
3.0
2.6
Mirza International
Neutral
161
-
1,939
1,148
1,285
18.0
18.0
8.0
9.4
20.1
17.2
3.3
2.8
16.3
16.1
1.8
1.6
Navkar Corporation
Buy
203
265
3,056
561
617
41.5
41.5
11.5
12.7
17.6
16.0
1.9
1.7
10.5
10.4
6.1
5.3
Stock Watch
January 04, 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
1,976
-
2,948
2,317
2,525
11.4
11.1
96.0
105.0
20.6
18.8
3.5
3.0
0.2
0.2
1.3
1.1
Parag Milk Foods
Neutral
304
-
2,556
1,987
2,379
7.6
9.0
12.4
18.3
24.5
16.6
3.5
3.0
8.2
13.2
1.4
1.2
Radico Khaitan
Neutral
298
-
3,969
1,811
1,992
13.2
13.2
8.1
8.8
36.8
33.8
3.7
4.1
10.1
12.0
2.5
2.3
Relaxo Footwears
Neutral
684
-
8,230
1,981
2,310
13.7
14.5
12.0
15.5
57.0
44.1
11.1
9.0
0.2
0.2
4.2
3.6
Siyaram Silk Mills
Accumulate
714
813
3,349
1,769
1,981
12.7
12.7
22.6
26.2
31.6
27.2
4.9
4.2
15.5
15.5
2.1
1.8
Styrolution ABS India* Neutral
1,077
-
1,894
1,800
1,980
8.0
8.1
42.0
46.2
25.6
23.3
2.9
2.6
0.1
0.1
1.2
1.1
Surya Roshni
Neutral
380
-
1,665
4,870
5,320
7.7
7.8
22.8
28.1
16.7
13.5
2.2
1.9
0.1
0.1
0.6
0.5
TVS Srichakra
Neutral
3,809
-
2,916
2,729
2,893
12.7
12.5
248.5
265.0
15.3
14.4
4.4
3.5
0.3
0.3
1.1
1.0
Visaka Industries
Neutral
664
-
1,054
1,104
1,214
12.1
12.6
31.0
37.9
21.4
17.5
2.6
2.3
0.1
0.1
1.2
1.1
VIP Industries
Buy
345
400
4,870
1,450
1,693
10.4
10.5
6.5
7.8
52.7
44.1
11.1
9.7
21.1
22.1
3.3
2.9
Navin Fluorine
Neutral
814
-
4,016
945
1,154
17.5
17.9
28.7
34.8
28.4
23.4
4.7
4.0
-
-
3.8
3.0
Century Plyboards India Buy
343
400
7,613
2,007
2,510
22.4
22.6
8.4
11.1
40.8
30.9
8.7
7.0
21.3
22.9
4.2
3.3
LT Foods
Accumulate
97
102
3,091
3,287
3,747
11.1
11.5
4.4
5.2
22.0
18.6
3.2
2.7
17.5
17.6
1.4
1.3
Ruchira Papers
Buy
206
244
462
470
532
15.6
15.6
16.5
19.0
12.5
10.9
2.5
2.1
20.0
19.2
1.2
1.0
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on January 03, 2018
Market Outlook
January 04, 2018
Research Team Tel: 022 - 39357800
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India
Limited,Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with
CDSL and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a
registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or
co-managed public offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
