Market Outlook
December 5, 2017
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open negative tracking global indices and SGX Nifty.
BSE Sensex
0.1
37
32,870
The U.S. Stocks turned mixed over the course of the trading session on Monday after
Nifty
0.1
6
10,128
an initial move to the upside. The Dow closed at a record Monday as trader reacted
Mid Cap
(0.1)
(15)
16,743
to the news that Senate Republicans narrowly approved a massive tax reform bill
Small Cap
(0.5)
(93)
17,924
early Saturday morning. However, the S&P 500 and the NASDAQ finished lower as
Bankex
(0.3)
(86)
28,350
large-capitalization technology names took a beating.
The Dow rose 0.2% to close at 24,290, but the NASDAQ tumbled 1.1 % to end at
Global Indices
Chg (%)
(Pts)
(Close)
6,775 and the S&P 500 edged down 0.1 % to finish at 2,639.
Dow Jones
0.2
58
24,290
The FTSE 100 index UKX, ended 0.5% higher at 7,339.The rally largely supported
Nasdaq
(1.1)
(72)
6,775
by bank shares and the passage of a tax overhaul package in the U.S. Senate also
FTSE
0.5
38
7,339
supported upward move in the index.
Nikkei
(0.4)
(94)
22,613
Indian Indices pared intraday gains to close largely unchanged on Monday as trader
Hang Seng
(0.5)
(135)
29,003
are caution ahead of RBI monetary policy review and the first phase of Gujarat
Shanghai Com
(0.0)
(1)
3,309
elections due this week. The benchmark BSE Sensex gained 0.11% to close at
32,870 while the Nifty index end at 10,128, up 0.06 % from its previous close.
Advances / Declines
BSE
NSE
News Analysis
Advances
1,109
684
Infosys gets new a CEO and MD
Declines
1,642
1,079
Detailed analysis on Pg2
Unchanged
149
61
Investor’s Ready Reckoner
Volumes (` Cr)
Key Domestic & Global Indicators
BSE
3,733
Stock Watch: Latest investment recommendations on 150+ stocks
NSE
24,739
Refer Pg5 onwards
Top Picks
Net Inflows (` Cr)
Net
Mtd
Ytd
CMP
Target
Upside
Company
Sector
Rating
FII
(603)
19,180
57,632
(`)
(`)
(%)
MFs
300
10,669 1,06,079
Blue Star
Capital Goods
Buy
742
867
16.9
Dewan Housing Finance
Financials
Buy
591
712
20.5
Asian Granito
Other
Accumulate
496
570
14.8
Top Gainers
Price (`)
Chg (%)
Navkar Corporation
Other
Buy
183
265
44.6
Biocon
514
15.0
KEI Industries
Capital Goods Accumulate
393
425
8.1
Sci
98
7.6
More Top Picks on Pg4
Ttkprestig
6,845
5.2
Key Upcoming Events
Videoind
17
5.0
Previous
Consensus
Date
Region
Event Description
Igl
333
4.9
Reading
Expectations
Dec05
UK
PMI Manufacturing
56.30
56.50
Dec05
Euro Zone Euro-Zone GDP s.a. (QoQ)
0.60
Top Losers
Price (`)
Chg (%)
Dec06
India
RBI Reverse Repo rate
5.75
5.75
Rnaval
36
(8.9)
Dec06
India
RBI Repo rate
6.00
6.00
Rcom
12
(6.6)
Dec06
India
RBI Cash Reserve ratio
4.00
4.00
Bomdyeing
202
(5.0)
More Events on Pg7
Den
96
(4.8)
Hathway
39
(4.7)
As on December 04 2017
Market Outlook
December 5, 2017
News Analysis
Infosys gets new a CEO and MD
Infosys announced appointing Mr. Salil S. Parekh as Chief Executive Officer &
Managing Director (CEO & MD) of the Company effective January 2, 2018. Mr.
Parekh has nearly three decades of global experience in the IT services industry.
Parekh joins Infosys from Capgemini where he was a member of the Group
Executive Board. He has Master of Engineering degrees in Computer Science and
Mechanical Engineering from Cornell University, and a Bachelor of Technology
degree in Aeronautical Engineering from the Indian Institute of Technology,
Bombay.
According to the company, he has a strong record of accomplishment of executing
business turnarounds and managing very successful acquisitions. Mr. Salil Parkeh
takes up the mandate at the time when Infosys is battling with the Industry
challenges like commoditization of traditional services & foray into new services
like digital. In addition, leadership appointments at Infosys in the past have been
short lived that company like Infosys can ill-afford being the leader in the industry.
Thus, Mr. Parekh has a challenging role of providing vision, stability and thus
generating shareholder wealth. While the new CEO’s extensive, tenure in
Capgemini, among large companies with favorable Digital Perception, will be
useful. In addition, Mr. Parekh has a strong technology background and rich IT
services experience. Thus, while Mr. Parekh is yet to give his color to Infosys story
from here on, we believe that Mr.Parekh looks like a sensible choice for the job. As
per the stock, we will maintain our numbers and hence our Buy recommendation,
with a price target of `1120.
Economic and Political News
RBI builds $31-bn forwards position as dollar tide rises
8 PSU banks to raise capital from market by March
Centre to unveil mid-term review of foreign trade policy on Tuesday
AYUSH industry may create 26 mn jobs by 2020: Suresh Prabhu
Corporate News
Tata Projects JV wins `5,612cr Mumbai Trans Harbour contract
Vijaya Bank to raise ₹1,300cr via bonds in FY18
NSE may refile IPO papers after getting clarity on co-location
ONGC partners in 6 pre-NELP blocks may have to share cess
Market Outlook
December 5, 2017
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
24,095
2,015
2,125
5.4
more products in USA, which bodes for its international
business.
We expect the company would report strong profitability
Asian Granito
1,493
496
570
14.8
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
7,108
742
867
16.9
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
18,523
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
8,227
114
180
57.9
Increasing share of CASA will help in NIM
improvement.
High order book execution in EPC segment, rising B2C
KEI Industries
3,082
393
425
8.1
sales and higher exports to boost the revenues and
profitability
Expected to benefit from the lower capex requirement
Music Broadcast
2,172
381
434
14.0
and 15 year long radio broadcast licensing.
Massive capacity expansion along with rail advantage
Navkar Corporation
2,759
183
265
44.6
at ICD as well CFS augur well for the company
Strong brands and distribution network would boost
Siyaram Silk Mills
3,242
692
721
5.0
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
2,239
375
435
15.9
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
2,57,158
8,513
9,489
11.5
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
2,297
427
655
53.6
year; change in borrowing mix will help in NIM
improvement
We expect CPIL to report net Revenue/PAT CAGR of
~17%/16% over FY2017-20E mainly due to healthy
6,911
311
400
28.6
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
1,927
72
96
32.9
two years on the back of strong distribution network &
addition of new products in portfolio.
Source: Company, Angel Research
Market Outlook
December 5, 2017
Key Upcoming Events
Global economic events release calendar
Bloomberg Data
Date
Time Country
Event Description
Unit
Period
Last Reported
Estimated
Dec 05, 2017
3:00 PMUK
PMI Manufacturing
Value
Nov
56.30
56.50
3:30 PMEuro Zone
Euro-Zone GDP s.a. (QoQ)
% Change
3Q F
0.60
Dec 06, 2017
2:30 PMIndia
RBI Reverse Repo rate
%
Dec 6
5.75
5.75
2:30 PMIndia
RBI Repo rate
%
Dec 6
6.00
6.00
2:30 PMIndia
RBI Cash Reserve ratio
%
Dec 6
4.00
4.00
Dec 08, 2017
3:00 PMUK
Industrial Production (YoY)
% Change
Oct
2.50
India
Imports YoY%
% Change
Nov
7.60
India
Exports YoY%
% Change
Nov
(1.10)
China
Exports YoY%
% Change
Nov
6.90
7:00 PMUS
Change in Nonfarm payrolls
Thousands
Nov
261.00
198.00
7:00 AMChina
Consumer Price Index (YoY)
% Change
Nov
1.90
1.80
Dec 09, 2017
7:00 PMUS
Unnemployment rate
%
Nov
4.10
4.10
Dec 12, 2017
5:30 PMIndia
Industrial Production YoY
% Change
Oct
3.80
3:00 PMUK
CPI (YoY)
% Change
Nov
3.00
US
Producer Price Index (mom)
% Change
Nov
0.20
Dec 13, 2017
3:00 PMUK
Jobless claims change
% Change
Nov
1.10
7:00 PMUS
Consumer price index (mom)
% Change
Nov
0.10
0.40
Dec 14, 2017
7:30 AMChina
Industrial Production (YoY)
% Change
Nov
6.20
12:00 PMIndia
Monthly Wholesale Prices YoY%
% Change
Nov
3.59
5:30 PMUK
BOE Announces rates
% Ratio
Dec 14
0.50
0.50
6:15 PMEuro Zone
ECB announces interest rates
%
Dec 14
-
7:45 PMUS
Industrial Production
%
Nov
0.94
Dec 15, 2017
3:30 PMEuro Zone
Euro-Zone CPI (YoY)
%
Nov F
1.40
Dec 18, 2017
12:30 AMUS
FOMC rate decision
%
Dec 13
1.25
1.50
Source: Bloomberg, Angel Research
Market Outlook
December 5, 2017
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
10.0
6.0
9.1
5.1
9.0
5.0
4.4
4.5
8.0
7.9
7.6
7.5
3.8
8.0
7.3
7.2
4.0
3.5
7.0
3.2
2.9
7.0
6.3
6.1
6.1
3.0
2.4
5.7
6.0
2.0
1.2
5.0
0.9
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
(%)
4.5
54.0
3.9
4.0
3.6
3.7
3.6
52.0
3.4
3.2
3.3
3.3
3.5
3.0
50.0
3.0
2.4
48.0
2.5
2.2
2.0
46.0
1.5
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
Market Outlook
December 5, 2017
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
December 5, 2017
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
72,264
(4.9)
1.8
15.0
Russia
Micex
2,106
2.0
4.7
(2.4)
India
Nifty
10,122
(3.1)
2.1
23.1
China
Shanghai Composite
3,318
(2.3)
(1.3)
2.4
South Africa
Top 40
52,888
(0.3)
5.8
21.3
Mexico
Mexbol
47,265
(3.3)
(7.7)
5.2
Indonesia
LQ45
992
(0.0)
1.3
16.9
Malaysia
KLCI
1,718
(1.7)
(2.9)
5.4
Thailand
SET 50
1,089
0.0
5.3
16.7
USA
Dow Jones
24,232
3.7
10.4
26.4
UK
FTSE
7,300
(2.2)
(1.5)
8.9
Japan
Nikkei
22,819
3.3
16.8
24.0
Germany
DAX
12,861
(4.5)
6.7
19.4
France
CAC
5,317
(3.6)
4.2
11.6
Source: Bloomberg, Angel Research p68in4
Stock Watch
December 05, 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
Reduce
236
209
4,580
1,873
2,099
15.0
15.0
9.5
10.5
24.8
22.4
3.8
3.4
15.8
16.0
2.3
2.1
United Phosphorus
Buy
711
820
36,152
18,922
21,949
18.0
18.5
36.2
45.6
19.7
15.6
4.1
3.4
22.7
23.8
2.1
1.7
Auto & Auto Ancillary
Ashok Leyland
Accumulate
116
127
34,071
23,339
27,240
10.1
10.8
4.7
6.2
25.0
18.7
5.0
4.4
20.0
23.6
1.4
1.2
Bajaj Auto
Neutral
3,200
-
92,596
23,936
27,955
19.5
20.1
142.7
167.3
22.4
19.1
4.9
4.4
21.8
22.8
3.5
2.9
Bharat Forge
Buy
675
875
31,446
7,637
8,755
21.7
23.2
36.1
47.3
18.7
14.3
3.4
2.9
18.5
20.8
4.0
3.4
Eicher Motors
Neutral
29,440
-
80,143
19,043
22,837
19.5
19.9
835.4
1,019.0
35.2
28.9
13.2
10.1
40.9
37.8
4.1
3.4
Gabriel India
Neutral
187
-
2,683
1,782
2,033
9.7
10.2
7.1
8.9
26.3
21.1
5.3
4.5
21.0
22.2
1.5
1.3
Hero Motocorp
Accumulate
3,606
4,129
72,006
32,239
36,878
16.0
15.6
184.4
206.5
19.6
17.5
6.1
5.4
31.3
30.7
2.0
1.7
Jamna Auto Industries Neutral
68
-
2,689
1,441
1,662
14.4
14.8
13.9
17.6
4.9
3.8
1.3
1.1
30.0
31.0
1.9
1.6
Mahindra and Mahindra Neutral
1,400
-
87,045
46,971
53,816
13.6
14.0
67.7
79.8
20.7
17.6
3.0
2.6
15.0
15.9
1.7
1.5
Maruti
Accumulate
8,513
9,489
257,158
79,470
95,208
15.9
17.2
281.7
363.8
30.2
23.4
6.6
5.3
21.7
22.8
2.9
2.3
Minda Industries
Neutral
1,203
-
10,400
4,328
5,084
11.0
11.9
27.3
36.4
44.2
33.1
9.4
7.3
23.1
25.6
2.5
2.1
Motherson Sumi
Neutral
363
-
76,386
55,937
64,445
10.8
11.4
16.9
21.1
21.5
17.2
4.8
4.9
25.2
25.4
1.4
1.2
Tata Motors
Neutral
403
-
116,476
303,167
343,649
11.8
13.8
33.1
54.7
12.2
7.4
2.0
1.6
16.9
23.0
0.4
0.4
TVS Motor
Neutral
725
-
34,465
13,992
16,216
9.0
9.4
17.1
20.3
42.6
35.7
11.3
8.7
29.7
27.7
2.4
2.0
Amara Raja Batteries
Accumulate
764
858
13,053
6,140
7,122
14.3
15.6
29.3
39.0
26.1
19.6
4.5
3.7
17.1
19.0
2.1
1.8
Exide Industries
Neutral
204
-
17,319
8,689
9,854
15.1
15.2
9.7
11.0
21.1
18.5
3.7
3.3
15.7
16.1
1.7
1.5
Apollo Tyres
Neutral
242
-
13,841
15,739
17,326
13.3
14.6
20.4
26.7
11.9
9.1
1.4
1.3
20.4
26.7
1.1
1.0
Ceat
Neutral
1,735
-
7,017
6,661
7,717
11.1
14.2
116.2
178.2
14.9
9.7
2.6
2.2
15.2
21.3
1.2
1.0
JK Tyres
Neutral
136
-
3,095
8,318
9,239
16.2
16.4
21.0
27.5
6.5
5.0
1.3
1.0
19.1
20.4
0.8
0.7
Swaraj Engines
Neutral
1,948
-
2,420
788
889
16.4
16.5
71.6
81.0
27.2
24.1
7.8
7.3
29.6
31.0
2.7
2.4
Subros
Neutral
256
-
1,535
1,855
2,135
11.6
11.8
10.3
14.7
25.0
17.5
3.8
3.3
15.8
19.1
1.0
0.9
Capital Goods
BEML
Neutral
1,607
-
6,693
4,286
5,194
7.1
8.2
42.9
58.1
37.5
27.7
3.1
2.8
7.6
8.7
1.6
1.3
Bharat Electronics
Neutral
180
-
44,287
10,258
12,470
19.6
19.5
7.3
8.6
24.7
21.0
0.5
0.4
20.4
21.9
3.8
3.1
Voltas
Neutral
610
-
20,177
6,778
8,004
9.6
11.0
17.1
22.4
35.7
27.2
8.5
7.5
17.7
19.8
2.7
2.3
BHEL
Neutral
91
-
33,226
33,200
39,167
6.8
9.5
6.2
11.2
14.6
8.1
0.7
0.6
4.6
8.0
0.6
0.4
Blue Star
Buy
742
867
7,108
5,220
6,207
6.3
6.6
16.8
22.3
44.1
33.3
8.8
7.7
19.9
23.3
1.3
1.1
CG Power and Industrial
Neutral
84
-
5,290
6,555
7,292
7.5
7.5
-
0.8
8,440.0
105.5
1.3
1.3
0.1
1.2
0.9
0.8
Solutions
Greaves Cotton
Neutral
119
-
2,902
1,778
1,993
14.7
15.1
8.1
9.1
14.7
13.1
3.3
3.1
21.8
23.6
1.4
1.2
Stock Watch
December 05, 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
316
350
8,114
9,779
11,113
9.4
9.8
14.2
18.2
22.2
17.3
4.3
3.5
21.1
22.1
1.1
1.0
KEI Industries
Accumulate
393
425
3,082
3,001
3,391
10.0
10.0
13.0
16.1
30.2
24.4
5.5
4.6
18.2
18.7
1.2
1.1
Thermax
Neutral
1,087
-
12,946
4,125
4,747
10.3
10.8
26.7
31.5
40.7
34.5
4.6
4.2
11.2
12.0
2.9
2.5
VATech Wabag
Accumulate
595
681
3,250
3,867
4,126
9.6
10.0
34.9
39.8
17.1
15.0
2.8
2.4
17.7
17.5
0.9
0.8
Cement
ACC
Neutral
1,695
-
31,836
12,255
13,350
13.5
14.3
58.0
66.2
29.2
25.6
3.5
3.2
11.5
12.2
2.6
2.4
Ambuja Cements
Neutral
261
-
51,835
10,250
11,450
17.5
19.0
7.2
8.3
36.3
31.5
2.6
2.5
7.0
7.8
4.8
4.3
India Cements
Neutral
168
-
5,188
6,135
6,750
14.8
15.2
8.5
11.5
19.8
14.6
1.0
0.9
4.8
6.2
1.2
1.0
JK Cement
Neutral
992
-
6,937
4,150
4,775
19.2
20.0
49.0
63.5
20.3
15.6
3.2
2.8
17.0
18.5
2.1
1.8
J K Lakshmi Cement
Neutral
408
-
4,805
3,422
3,757
15.5
17.0
13.5
23.2
30.3
17.6
3.1
2.7
10.8
15.5
1.8
1.6
Orient Cement
Neutral
164
-
3,354
2,215
3,233
16.8
17.0
5.9
6.9
27.8
23.7
2.1
2.0
10.8
10.1
2.5
1.7
UltraTech Cement
Neutral
4,110
-
112,835
28,250
35,150
20.2
23.5
77.5
122.2
53.0
33.6
4.5
4.1
9.6
14.8
4.5
3.6
Construction
KNR Constructions
Neutral
272
-
3,822
1,846
2,203
14.5
14.5
12.1
13.7
22.5
19.9
1.2
1.1
17.5
16.7
2.1
1.8
Larsen & Toubro
Neutral
1,218
-
170,625
95,787
109,476
10.2
11.6
44.5
50.8
27.4
24.0
3.4
3.2
12.9
13.1
2.3
2.1
Gujarat Pipavav Port
Neutral
139
-
6,705
739
842
61.6
62.7
5.1
6.2
27.2
22.6
3.4
3.3
12.7
14.9
8.5
7.4
PNC Infratech
Neutral
186
-
4,759
2,040
2,935
13.0
13.0
6.4
9.0
29.0
20.6
0.8
0.7
9.7
12.2
2.3
1.7
Simplex Infra
Neutral
556
-
2,749
6,012
6,619
11.6
11.7
21.1
31.0
26.4
18.0
1.8
1.7
6.5
8.6
1.0
0.9
Sadbhav Engineering
Neutral
375
-
6,439
3,823
4,426
10.7
10.8
10.3
11.8
36.4
31.8
4.4
3.8
10.1
10.5
2.0
1.7
NBCC
Neutral
256
-
23,036
9,099
12,706
6.4
6.4
7.3
9.6
35.2
26.8
1.6
1.2
27.5
30.5
2.4
1.7
MEP Infra
Neutral
97
-
1,569
2,403
2,910
18.3
16.8
2.4
6.1
41.0
15.9
15.6
10.5
35.2
55.8
1.8
1.5
SIPL
Neutral
139
-
4,878
2,060
2,390
46.8
47.7
(5.8)
(3.1)
5.2
5.9
(14.2)
(2.3)
7.1
6.6
Engineers India
Neutral
182
-
12,254
1,795
2,611
21.1
22.4
5.9
8.1
30.8
22.5
2.2
2.1
12.9
16.1
5.2
3.4
Financials
Axis Bank
Accumulate
535
580
128,289
32,558
35,843
3.5
3.2
27.8
41.0
19.2
13.0
2.1
1.8
11.4
14.9
-
-
Bank of Baroda
Neutral
169
-
39,032
22,533
26,079
2.4
2.4
12.0
20.9
14.1
8.1
0.9
0.9
6.6
11.0
-
-
Canara Bank
Neutral
367
-
21,921
17,925
20,235
2.0
2.1
18.5
36.5
19.8
10.1
0.8
0.7
3.4
6.2
-
-
Can Fin Homes
Neutral
460
-
6,118
586
741
3.5
3.5
107.8
141.0
4.3
3.3
0.9
0.8
24.1
25.6
-
-
Cholamandalam Inv. &
Neutral
1,294
-
20,225
2,826
3,307
6.3
6.3
53.7
64.6
24.1
20.1
4.1
3.5
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
138
235
4,675
1,125
1,380
9.6
9.8
1.5
6.0
91.8
23.0
2.1
1.9
2.4
8.2
-
-
Federal Bank
Buy
106
125
20,867
4,896
5,930
2.8
3.1
5.4
7.6
19.8
14.0
1.7
1.5
8.5
11.0
-
-
Stock Watch
December 05, 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
427
655
2,297
376
477
3.6
3.7
33.0
40.0
12.9
10.7
2.3
2.0
20.0
23.0
-
-
HDFC Bank
Neutral
1,838
-
475,583
55,236
63,253
4.5
4.4
68.9
82.4
26.7
22.3
4.7
3.9
18.7
18.5
-
-
ICICI Bank
Neutral
304
-
195,357
42,361
51,378
3.6
3.9
18.4
25.7
16.6
11.8
1.8
1.7
11.3
15.0
-
-
Karur Vysya Bank
Buy
114
180
8,227
3,289
3,630
3.7
3.9
10.8
14.1
10.5
8.1
1.3
1.1
12.5
14.7
-
-
LIC Housing Finance
Accumulate
569
630
28,736
4,895
6,332
3.4
3.7
50.7
66.8
11.2
8.5
2.2
1.9
21.7
23.8
-
-
Punjab Natl.Bank
Neutral
173
-
36,835
23,708
25,758
2.1
2.1
5.9
16.4
29.5
10.6
0.9
0.8
3.0
8.3
-
-
RBL Bank
Neutral
512
-
21,316
2,309
2,888
2.6
2.5
16.4
19.1
31.3
26.8
3.9
3.5
13.3
13.8
-
-
Repco Home Finance
Buy
611
825
3,822
496
597
4.4
4.2
38.5
48.7
15.9
12.5
2.9
2.4
19.6
20.6
-
-
South Ind.Bank
Neutral
32
-
5,715
3,195
3,567
3.0
3.1
3.0
3.8
10.5
8.3
1.0
0.9
10.5
11.9
-
-
St Bk of India
Neutral
313
-
270,442
105,827
121,056
2.4
2.5
16.1
25.6
19.5
12.3
1.5
1.4
6.6
9.9
-
-
Union Bank
Neutral
159
-
11,557
14,650
16,225
2.3
2.3
23.1
32.5
6.9
4.9
0.5
0.5
7.1
9.2
-
-
Yes Bank
Neutral
303
-
69,663
11,088
13,138
3.0
2.9
84.0
99.3
3.6
3.1
0.6
0.5
16.3
16.8
-
-
FMCG
Akzo Nobel India
Neutral
1,795
-
8,609
3,164
3,607
13.8
13.7
58.6
67.9
30.6
26.4
7.5
6.6
24.5
25.1
2.6
2.2
Asian Paints
Neutral
1,123
-
107,699
17,603
20,615
18.6
18.6
2,128.9
2,543.3
0.5
0.4
11.1
9.4
28.0
28.9
5.9
5.0
Britannia
Neutral
4,753
-
57,058
9,690
11,278
14.8
15.4
84.0
101.0
56.6
47.1
20.6
16.4
40.6
39.0
5.9
5.0
Colgate
Neutral
1,031
-
28,031
4,420
5,074
24.9
25.3
28.6
32.8
36.0
31.4
14.2
11.5
43.8
40.5
6.1
5.3
Dabur India
Neutral
339
-
59,663
8,346
9,344
19.6
19.9
7.8
9.0
43.4
37.6
8.8
7.9
25.2
24.8
6.8
5.9
GlaxoSmith Con*
Neutral
6,095
-
25,632
5,072
5,760
18.2
18.4
176.3
199.2
34.6
30.6
7.3
6.6
21.2
21.7
4.4
3.8
Godrej Consumer
Neutral
974
-
66,355
10,171
11,682
20.8
21.5
21.7
27.1
44.9
35.9
10.1
8.7
22.3
23.4
6.6
5.7
HUL
Neutral
1,268
-
274,478
37,077
41,508
20.3
21.8
5,189.9
6,318.5
0.2
0.2
38.7
33.0
74.8
82.0
7.3
6.5
ITC
Neutral
255
-
310,860
44,588
49,853
37.0
37.3
9.6
11.0
26.6
23.2
6.5
6.2
25.1
27.3
6.5
5.7
Marico
Neutral
312
-
40,285
6,788
7,766
18.5
19.2
7.1
8.5
44.0
36.7
15.4
13.2
36.9
38.0
5.8
5.0
Nestle*
Neutral
7,692
-
74,166
10,083
11,182
20.0
20.9
119.7
141.3
64.3
54.4
226.5
207.0
36.7
39.8
7.0
6.3
Tata Global
Neutral
279
-
17,612
7,121
7,641
11.9
12.3
6.9
8.0
40.4
34.9
2.7
2.6
6.8
7.2
2.3
2.1
Procter & Gamble
Neutral
9,812
-
31,850
3,034
3,579
27.1
27.7
167.7
198.8
58.5
49.4
15.7
13.5
28.8
29.5
9.9
8.3
Hygiene
IT
HCL Tech^
Buy
850
1,014
121,287
50,009
54,608
22.1
22.1
62.8
67.6
13.5
12.6
3.0
2.6
22.4
20.6
2.1
1.8
Infosys
Accumulate
985
1,120
226,323
70,333
75,960
26.0
26.0
61.7
65.9
16.0
15.0
3.0
2.8
18.9
18.7
2.6
2.4
TCS
Reduce
2,633
2,442
504,099
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
Tech Mahindra
Accumulate
474
526
46,248
30,545
32,988
15.0
15.0
35.2
37.6
13.5
12.6
2.3
2.1
16.8
16.2
1.3
1.1
Stock Watch
December 05, 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
IT
Wipro
Neutral
290
-
141,158
54,164
56,544
22.3
22.3
18.8
19.5
15.4
14.9
2.5
2.1
15.0
13.6
1.8
1.6
Media
D B Corp
Neutral
360
-
6,630
2,404
2,625
30.5
31.5
23.7
26.9
15.2
13.4
3.6
3.1
23.5
22.8
2.6
2.4
HT Media
Neutral
100
-
2,326
2,589
2,830
15.1
15.4
8.3
10.9
12.0
9.2
1.0
0.9
8.4
10.4
0.4
0.3
Jagran Prakashan
Buy
165
225
5,134
2,541
2,835
28.5
28.7
12.7
14.1
13.0
11.7
2.7
2.3
21.3
21.4
1.9
1.6
Sun TV Network
Neutral
852
-
33,568
3,238
3,789
51.9
55.1
30.9
38.0
27.6
22.4
7.9
6.9
30.0
31.0
9.9
8.3
Hindustan Media
Neutral
247
-
1,812
1,002
1,074
23.3
23.5
29.2
33.8
8.5
7.3
1.3
1.1
15.6
15.4
0.8
0.5
Ventures
TV Today Network
Buy
375
435
2,239
667
727
27.7
27.7
18.6
20.1
20.2
18.7
3.1
3.2
15.6
17.3
2.9
2.7
Music Broadcast Limited Accumulate
381
434
2,172
271
317
91.0
109.0
6.0
10.0
63.4
38.1
4.0
3.6
6.5
9.3
7.6
6.3
Metals & Mining
Coal India
Neutral
267
-
165,458
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
299
-
126,316
22,108
24,555
57.0
58.0
22.1
26.3
13.5
11.4
4.4
3.6
32.0
35.0
4.7
3.9
Hindalco
Neutral
240
-
53,807
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
1.0
JSW Steel
Neutral
252
-
60,926
64,500
68,245
21.1
21.5
20.1
21.2
12.5
11.9
2.3
2.0
-
-
1.7
1.6
NMDC
Neutral
133
-
42,016
10,209
11,450
47.0
48.0
11.1
12.1
12.0
11.0
1.7
1.6
-
-
3.6
3.3
SAIL
Neutral
78
-
32,070
54,100
63,555
3.0
10.0
(10.0)
1.5
51.8
1.0
1.0
-
-
1.6
1.4
Vedanta
Neutral
290
-
107,817
81,206
87,345
28.0
29.0
26.5
33.5
11.0
8.7
2.5
2.1
-
-
2.1
1.8
Tata Steel
Neutral
688
-
66,791
121,445
126,500
16.2
17.2
65.4
81.3
10.5
8.5
1.7
1.4
-
-
1.1
0.9
Oil & Gas
GAIL
Neutral
463
-
78,290
53,115
52,344
14.2
15.3
30.0
31.1
15.4
14.9
1.9
1.8
-
-
1.2
1.2
ONGC
Neutral
181
-
232,474
83,111
84,934
44.2
44.9
16.4
16.9
11.1
10.7
1.3
1.2
-
-
2.7
2.6
Indian Oil Corp
Neutral
391
-
189,647
396,116
432,560
8.5
8.8
40.1
42.2
9.7
9.3
1.7
1.5
-
-
0.6
0.6
Reliance Industries
Neutral
902
-
586,318
257,711
267,438
17.0
18.2
89.1
89.5
10.1
10.1
0.9
0.9
-
-
1.9
1.8
Pharmaceuticals
Alembic Pharma
Buy
513
600
9,664
3,346
3,915
19.6
19.2
21.0
23.9
24.4
21.5
4.3
3.7
19.1
18.4
2.9
2.5
Alkem Laboratories Ltd
Accumulate
2,015
2,125
24,095
6,320
7,341
17.5
19.8
72.7
96.6
27.7
20.9
4.9
4.1
16.7
18.7
3.8
3.2
Aurobindo Pharma
Buy
674
823
39,483
17,086
19,478
22.1
22.0
44.7
51.4
15.1
13.1
3.3
2.7
24.7
22.7
2.4
2.1
Aventis*
Neutral
4,385
-
10,100
2,411
2,698
18.8
18.8
151.6
163.9
28.9
26.8
4.5
3.6
25.4
27.5
3.8
3.2
Cadila Healthcare
Neutral
424
-
43,417
11,365
12,926
20.0
20.0
18.4
20.5
23.1
20.7
5.1
4.2
24.3
22.2
3.9
3.4
Cipla
Sell
595
462
47,907
16,163
18,711
16.6
16.9
20.7
24.3
28.8
24.5
3.4
3.0
12.6
13.1
3.1
2.6
Dr Reddy's
Reduce
2,241
2,040
37,162
13,734
15,548
17.7
20.2
69.9
102.0
32.1
22.0
2.9
2.6
9.2
12.4
2.9
2.6
GSK Pharma*
Sell
2,441
2,000
20,679
2,968
3,324
13.8
15.9
37.8
46.3
64.6
52.7
11.3
12.4
16.7
22.4
6.8
6.2
Indoco Remedies
Sell
264
136
2,431
1,114
1,297
9.9
13.9
5.6
11.4
47.1
23.1
3.6
3.2
7.7
14.5
2.5
2.1
Stock Watch
December 05, 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
516
570
6,507
3,256
3,647
14.1
17.1
16.2
25.4
31.8
20.3
2.5
2.2
8.0
11.5
2.1
1.8
Lupin
Buy
814
1,091
36,808
16,240
18,562
21.3
21.7
42.5
49.6
19.2
16.4
2.4
2.1
13.3
13.7
2.4
2.0
Natco Pharma
Accumulate
947
1,057
16,530
1,886
2,016
32.3
29.5
23.2
22.0
40.9
43.0
8.6
7.6
20.9
17.6
8.6
8.0
Sun Pharma
Buy
521
615
124,989
28,312
31,826
20.7
22.4
18.5
22.3
28.2
23.4
3.2
2.9
11.5
14.0
4.0
3.5
Syngene International
Neutral
561
-
11,214
1,394
1,818
33.0
36.5
15.8
21.0
35.4
26.7
6.6
5.4
18.6
20.3
8.0
6.1
Power
Tata Power
Neutral
90
-
24,302
32,547
33,806
20.5
20.5
4.7
5.4
19.1
16.8
1.8
1.6
10.5
10.5
1.7
1.7
NTPC
Neutral
180
-
148,253
86,070
101,246
28.3
30.7
12.9
16.2
13.9
11.1
1.4
1.3
10.6
12.4
3.1
2.8
Power Grid
Accumulate
203
223
106,149
29,183
32,946
89.7
90.0
18.0
20.8
11.3
9.8
1.9
1.7
17.7
18.2
7.6
7.0
Real Estate
Prestige Estate
Neutral
316
-
11,850
4,607
5,146
21.0
22.2
7.9
9.8
40.0
32.2
2.5
2.3
10.3
12.0
3.7
3.4
MLIFE
Accumulate
468
522
2,400
487
590
12.3
17.8
21.0
31.2
22.3
15.0
1.2
1.1
5.2
7.4
3.6
3.0
Telecom
Bharti Airtel
Neutral
485
-
193,794
97,903
105,233
36.0
36.3
9.3
11.1
52.1
43.9
2.5
2.4
5.0
5.6
2.9
2.7
Idea Cellular
Neutral
93
-
33,602
35,012
37,689
27.1
27.7
(4.4)
(2.7)
1.5
1.5
(6.8)
(4.6)
2.3
2.0
zOthers
Abbott India
Neutral
5,536
-
11,763
3,244
3,723
14.9
16.1
167.5
209.4
33.1
26.4
7.3
6.1
23.7
24.8
3.3
2.8
Asian Granito
Accumulate
496
570
1,493
1,169
1,286
12.5
12.5
16.0
19.7
31.1
25.2
3.3
2.9
10.7
11.6
1.5
1.3
Bajaj Electricals
Neutral
454
-
4,615
4,646
5,301
6.7
7.6
16.1
22.3
28.2
20.4
4.6
3.9
16.4
19.2
1.0
0.9
Banco Products (India)
Neutral
244
-
1,744
1,530
1,695
13.2
12.7
19.0
20.0
12.8
12.2
2.1
1.8
0.2
0.2
1.1
117.2
Coffee Day Enterprises
Neutral
270
-
5,562
3,494
3,913
17.4
18.0
4.8
5.7
-
47.4
2.4
2.3
-
0.1
2.1
1.8
Ltd
Elecon Engineering
Neutral
85
-
950
171
201
15.0
16.2
36.0
43.0
2.4
2.0
0.2
0.2
0.1
0.1
4.9
4.2
Garware Wall Ropes
Neutral
910
-
1,991
928
1,003
15.2
15.2
39.4
43.2
23.1
21.1
3.8
3.3
16.5
15.4
2.0
1.8
Goodyear India*
Neutral
867
-
1,999
1,717
1,866
11.8
12.3
47.9
49.8
18.1
17.4
2.8
2.4
15.6
15.7
0.9
123.1
Hitachi
Neutral
2,496
-
6,787
2,355
2,715
10.3
10.8
49.0
60.9
50.9
41.0
11.9
9.4
0.2
0.2
2.9
2.5
HSIL
Neutral
489
-
3,539
2,240
2,670
14.6
15.0
17.0
22.0
28.8
22.3
2.4
2.3
0.1
0.1
1.8
1.5
Interglobe Aviation
Neutral
1,145
-
43,992
22,570
27,955
14.2
15.0
63.6
81.8
18.0
14.0
9.5
8.0
0.5
0.6
1.6
1.2
Jyothy Laboratories
Neutral
369
-
6,709
1,781
2,044
14.1
15.0
9.4
10.5
39.5
35.2
8.4
7.9
0.2
0.2
4.0
3.4
Linc Pen & Plastics
Neutral
297
-
439
420
462
9.3
9.3
15.3
17.1
19.4
17.4
3.3
3.4
16.9
19.5
1.1
1.0
M M Forgings
Neutral
923
-
1,115
542
642
20.1
21.0
41.6
56.8
22.2
16.3
3.1
2.6
0.1
0.2
2.5
2.2
Mirza International
Neutral
157
-
1,884
1,148
1,285
18.0
18.0
8.0
9.4
19.5
16.7
3.2
2.7
16.3
16.1
1.8
1.6
Navkar Corporation
Buy
183
265
2,759
561
617
41.5
41.5
11.5
12.7
15.9
14.4
1.7
1.5
10.5
10.4
5.6
4.9
Nilkamal
Neutral
1,711
-
2,553
2,317
2,525
11.4
11.1
96.0
105.0
17.8
16.3
3.0
2.6
0.2
0.2
1.1
1.0
Stock Watch
December 05, 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
242
-
2,036
1,987
2,379
7.6
9.0
12.4
18.3
19.5
13.2
2.8
2.4
8.2
13.2
1.1
1.0
Radico Khaitan
Neutral
262
-
3,495
1,811
1,992
13.2
13.2
8.1
8.8
32.4
29.8
3.3
3.6
10.1
12.0
2.3
2.1
Relaxo Footwears
Neutral
607
-
7,303
1,981
2,310
13.7
14.5
12.0
15.5
50.6
39.2
9.9
8.0
0.2
0.2
3.7
3.2
Siyaram Silk Mills
Neutral
692
-
3,242
1,769
1,981
12.7
12.7
22.6
26.2
30.6
26.4
4.7
4.1
15.5
15.5
2.0
1.8
Styrolution ABS India* Neutral
1,040
-
1,829
1,800
1,980
8.0
8.1
42.0
46.2
24.8
22.5
2.8
2.5
0.1
0.1
1.1
1.0
Surya Roshni
Neutral
370
-
1,620
4,870
5,320
7.7
7.8
22.8
28.1
16.3
13.2
2.2
1.9
0.1
0.1
0.6
0.5
TVS Srichakra
Neutral
3,304
-
2,530
2,729
2,893
12.7
12.5
248.5
265.0
13.3
12.5
3.8
3.1
0.3
0.3
0.9
0.9
Visaka Industries
Neutral
626
-
995
1,104
1,214
12.1
12.6
31.0
37.9
20.2
16.6
2.5
2.2
0.1
0.1
1.1
1.0
VIP Industries
Accumulate
352
400
4,968
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
700
-
3,456
945
1,154
17.5
17.9
28.7
34.8
24.4
20.2
4.0
3.5
-
-
3.2
2.5
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on December 04, 2017
Market Outlook
December 05, 2017
Research Team Tel: 022 - 39357800
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