Market Outlook

September 06, 2016

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian markets are expected to open flat with a positive bias.

BSE Sensex

0.4

109

28,532

Nifty

0.4

8,810

The US markets were closed on Monday on account of Labor day.However markets

closed moderaly up on Friday after a lower than expected job data by the Labor

Mid Cap

0.5

13,231

department.After reporting 2,75,000 for the month of July, the August data showed

Small Cap

0.4

12,644

non farm payrolls at addition of only 1,51,000. Though the markets gave off some

Bankex

0.6

126

22,804

of the initial gains it still manged to close higher.

The European markets closed positvely on Friday, after a lower than expected job

Global Indices

Chg (%)

(Pts)

(Close)

data, fuelled expectations that, the US Fed might not be able to go ahead with its

Dow Jones

0.4

18,419

planned rate hike in the near term.

Nasdaq

0.4

5250

Indian markets closed Friday with a modest gain. The markets have seen broad

FTSE

(0.2)

(15)

6,879

based buying in the last few trading sessions and seems in the absence of any

negative development will continue to trade in positive territory.

Nikkei

0.7

112

17,037

Hang Seng

1.7

383

23,649

News Analysis

Shanghai Com

0.2

3,072

 Equitas Holdings starts Small Finance Banking operations

Detailed analysis on Pg2

Advances / Declines

BSE

NSE

Investor’s Ready Reckoner

Advances

1,519

892

Key Domestic & Global Indicators

Declines

1,217

688

Stock Watch: Latest investment recommendations on 150+ stocks

Unchanged

176

Refer Pg5 onwards

Volumes (` Cr)

Top Picks

CMP

Target

Upside

BSE

3,735

Company

Sector

Rating

(`)

(%)

NSE

19,340

Amara Raja

Auto/Auto Ancillary Accumulate

997

1,076

7.9

HCL Tech

Buy

784

1,000

27.5

HDFC Bank

Financials

Accumulate

1,284

1,350

5.1

Net Inflows (` Cr)

Net

Mtd

Ytd

Bharat Electronics

Capital Goods

Buy

1,219

1,414

16.0

FII

(382)

40,286

Equitas Holdings

Financials

Buy

180

235

30.6

MFs

107

10,215

Navkar Corporation Others

Buy

192

265

38.0

More Top Picks on Pg3

Top Gainers

Price (`)

Chg (%)

Key Upcoming Events

Jktyre

145

8.8

Consensus

Date

Region

Event Description

Hcc

8.6

Reading

Expectations

Sep 06 Euro

Eurozone GDP QoQ

0.3

Pvr

1,272

7.6

Sep 07 US

Initial Jobless Claims

263.00

264.50

Ceatltd

954

6.8

Sep 08 UK

Industrial Production YoY

1.60

1.90

Sci

6.6

China

Exports YoY%

(4.40)

(3.90)

India

Exports YoY%

(6.84)

6.(

Top Losers

Price (`)

Chg (%)

Cholafin

1,098

(6.0)

Eidparry

236

(4.8)

Kscl

327

(4.4)

Rtnpower

(3.4)

Jindalstel

(3.2)

As on September 02, 2016

www.angelbroking.com

Market Outlook

September 06, 2016

News Analysis

Equitas Starts Small Finance Banks Operations

Equitas Holdings has commenced operations of its Small Finance Bank on

Monday, from its head office in Chennai. Earlier the company had plans to start

SFB operations fro 400 branches.While the SFB will have to incur `100 cr capex

per year , the management had earlier expressed that the SFB will be profitable

from the very first year itself.

While a large expenses towards technology and other fixed cost has been incuured

initially, man power cost will grdaully go up. The new banking operations will have

to hire people experienced in the banking space to scale up.

As the much awaited SFB operations has started we belive investors will be more

keen to obesves how the cost strcture pans out. We expect the company will be

able to report 40% CAGR in its loan book , due its low base over FY16-FY18.

However, eargnings growth could be lower than the topline growth as the newly

formed bank will have to observe all the needs of RBI like maintaining SLR and

CRR. At the CMP the stock is trading at 2.4x its FY18E BV,we maintain our BUY

rating on the stock.

Economic and Political News

 Railways draw up holding firm blueprint

 India’s coffee exports up 18.15% in April-August

 Bombardier to bid for upcoming metro rail projects

 India becomes Honda’s biggest 2 wheller market

 Services PMI at 42 month high in AUgust

Corporate News

 Praj to tie up with PEs for its green fund; to invest in biomass based ethanol

 Vedanta to investe `3000 cr to double copper capacity

 Maruti to launch LCV super carry pan India in phases

 Carborundum Universal expects to come out of loss in China

www.angelbroking.com

Market Outlook

September 06, 2016

Top Picks

Large Cap

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

To outpace battery industry growth due to better technological

Amara Raja Batteries

17,037

997

1,076

7.9

products leading to market share gains in both the automotive

OEM and replacement segments.

Uptick in defense capex by government, coupled with BELs

Bharat Electronics

29,256

1,219

1,414

16.0

strong market positioning, indicate good times ahead for BEL.

HCL Tech

1,10,646

784

1,000

27.5

Stock is trading at attractive valuations & factors all bad news.

Strong visibility for a robust 20% earnings trajectory, coupled

HDFC Bank

3,25,189

1,284

1,350

5.1

with high quality of earnings on account of high quality retail

business and strategic focus on highly rated corporates.

Back on the growth trend, expect a long term growth of 14% to

Infosys

2,36,827

1,031

1,370

32.9

be a US$20bn in FY2020.

Source: Company, Angel Research

Mid Cap

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

Favourable outlook for the AC industry to augur well for

Cooling products business which is out pacing the market

Blue Star

4,754

499

527

5.7

growth. EMPPAC division's profitability to improve once

operating environment turns around.

Strong loan growth backed by diversified loan portfolio and

Equitas Holdings

6,037

180

235

30.6

adequate CAR. ROE & ROA likely to remain decent as risk of

dilution remains low. Attractive valuations considering growth.

Expectations of above average monsoon augurs well for

Goodyear India

1,335

579

631

9.0

Goodyear India as it derives ~50% of its turnover from farm

tyre segment.

Commencement of new projects, downtrend in the interest rate

IL&FS Transport

2,395

27.7

cycle, to lead to stock re-rating

Speedier execution and speedier sales, strong revenue visibility

Mahindra Lifespace

1,773

432

522

20.8

in short-to-long run, attractive valuations

Massive capacity expansion along with rail advantage at ICD as

Navkar Corporation

2,738

192

265

38.0

well CFS augurs well for the company

Earnings boost on back of stable material prices and favourable

Radico Khaitan

1,340

101

125

24.1

pricing environment. Valuation discount to peers provides

additional comfort

Market leadership in Hindi news genre and no. 2 viewership

TV Today Network

1,806

303

363

19.9

ranking in English news genre, exit from the radio business, and

anticipated growth in ad spends by corporates to benefit the stock.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

September 06, 2016

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

9.0

8.3

12.0

9.9

7.8

7.9

10.0

8.0

7.5

7.6

7.2

7.1

8.0

6.3

6.6

6.7

7.0

6.4

6.0

3.7

5.8

4.0

2.1

6.0

1.9

1.1

2.0

0.3

5.0

4.0

(2.0)

(0.9)

(1.3)

(1.6)

(4.0)

3.0

(3.4)

(6.0)

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

(%)

7.0

6.1

54.0

5.7

5.8

5.4

5.6

5.5

6.0

5.3

5.0

4.8

52.0

5.0

4.4

3.7

4.0

50.0

3.0

48.0

2.0

46.0

1.0

44.0

Source: MOSPI, Angel Research

Source: Market, Angel Research; Note: Level above 50 indicates expansion

Exhibit 5: Exports and imports growth trends

Exhibit 6: Key policy rates

(%)

Exports yoy growth

Imports yoy growth

(%)

Repo rate

Reverse Repo rate

CRR

5.0

7.00

0.0

6.50

(5.0)

6.00

(10.0)

5.50

(15.0)

5.00

(20.0)

4.50

(25.0)

4.00

(30.0)

3.50

(35.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Market Outlook

September 06, 2016

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

58,236

3.7

15.0

22.0

Russia

Micex

1,977

3.4

4.6

16.4

India

Nifty

8,775

1.6

7.3

11.3

China

Shanghai Composite

3,063

3.0

4.8

3.4

South Africa

Top 40

46,169

0.5

(3.8)

4.1

Mexico

Mexbol

47,563

2.2

3.6

9.9

Indonesia

LQ45

916

(1.1)

10.9

32.4

Malaysia

KLCI

1,671

0.3

2.5

9.0

Thailand

SET 50

978

2.3

7.3

10.4

USA

Dow Jones

18,419

0.6

3.3

12.5

FTSE

6,746

0.8

9.1

11.6

Japan

Nikkei

16,927

1.7

(0.2)

(12.9)

Germany

DAX

10,534

3.8

4.3

4.2

France

CAC

4,440

2.6

0.4

(3.4)

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

September 6, 2016

Key Upcoming Events

Result Calendar

Date

Company

Sep 07, 2016

BHEL, Areva, ONGC, GAIL, Surya Roshni

Sep 08, 2016

Jindal Steel, SAIL

Sep 09, 2016

Coal India, Nalco, GSPL

Source: Bloomberg, Angel Research

Global economic events release calendar

Bloomberg Data

Date

Time

Country Event Description

Unit

Period

Last Reported Estimated

Sep 06, 2016

2:30 PM Euro Zone

Euro-Zone GDP s.a. (QoQ)

% Change 2Q F

0.30

Sep 07, 2016

6:00 PM

Initial Jobless claims

Thousands Sep 3

263.00

264.50

Sep 08, 2016

2:00 PM

Industrial Production (YoY)

% Change

Jul

1.60

1.90

China

Exports YoY%

% Change Aug

(4.40)

(3.90)

India

Exports YoY%

% Change Aug

(6.84)

Sep 09, 2016

5:15 PM Euro Zone

ECB announces interest rates

% Sep 8

India

Imports YoY%

% Change Aug

(19.03)

7:00 AM

China

Consumer Price Index (YoY)

% Change Aug

1.80

1.70

Sep 12, 2016

5:30 PM

India

Industrial Production YoY

% Change

Jul

2.10

Sep 13, 2016

2:00 PM

CPI (YoY)

% Change Aug

0.60

7:30 AM

China

Industrial Production (YoY)

% Change Aug

6.00

6.20

Sep 14, 2016

2:00 PM

Jobless claims change

% Change Aug

(8.60)

12:00 PM

India

Monthly Wholesale Prices YoY%

% Change Aug

3.55

Source: Bloomberg, Angel Research

www.angelbroking.com

Stock Watch

September 06, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Agri / Agri Chemical

Rallis

Neutral

226

4,398

1,937

2,164

13.3

14.3

9.0

11.0

25.1

20.6

4.4

3.8

18.4

19.8

2.3

2.0

United Phosphorus

Accumulate

635

684

27,227

15,176

17,604

18.5

37.4

44.6

17.0

14.2

3.3

2.8

21.4

21.2

1.9

1.6

Auto & Auto Ancillary

Ashok Leyland

Buy

111

23,692

22,407

26,022

10.6

5.2

6.4

16.0

13.0

3.6

3.1

23.6

24.7

1.1

1.0

Bajaj Auto

Neutral

3,000

86,806

25,093

27,891

19.5

19.2

143.9

162.5

20.8

18.5

5.9

5.0

30.3

29.4

3.2

2.8

Bharat Forge

Neutral

874

20,350

7,726

8,713

20.5

21.2

35.3

42.7

24.8

20.5

4.6

4.1

18.9

20.1

2.7

2.3

Eicher Motors

Neutral

22,817

61,974

16,583

20,447

17.5

18.0

598.0

745.2

38.2

30.6

13.0

9.9

41.2

38.3

3.6

2.8

Gabriel India

Neutral

120

1,717

1,544

1,715

9.0

9.3

5.4

6.3

22.1

19.0

4.2

3.7

18.9

19.5

1.1

0.9

Hero Motocorp

Neutral

3,579

71,459

31,253

35,198

15.3

15.0

172.3

192.1

20.8

18.6

7.6

6.5

38.9

37.0

2.2

1.9

Jamna Auto Industries Neutral

222

1,774

1,486

1,620

9.8

9.9

15.0

17.2

14.8

12.9

3.2

2.7

21.8

21.3

1.3

1.1

L G Balakrishnan & Bros Neutral

485

761

1,302

1,432

11.6

11.9

43.7

53.0

11.1

9.1

1.6

1.4

13.8

14.2

0.7

0.6

Mahindra and Mahindra Neutral

1,469

91,229

46,534

53,077

11.6

11.7

67.3

78.1

21.8

18.8

3.6

3.1

15.4

15.8

1.9

1.7

Maruti

Neutral

5,159

155,828

69,186

82,217

14.7

14.4

198.5

241.4

26.0

21.4

5.1

4.1

20.2

20.0

2.0

1.6

Minda Industries

Neutral

1,407

2,232

2,728

3,042

9.0

9.1

68.2

86.2

20.6

16.3

4.7

3.7

23.8

24.3

0.9

0.8

Motherson Sumi

Neutral

321

42,420

45,896

53,687

7.8

8.3

13.0

16.1

24.6

19.9

7.9

6.3

34.7

35.4

1.0

0.8

Rane Brake Lining

Neutral

780

618

511

562

11.3

11.5

28.1

30.9

27.8

25.2

4.2

3.9

15.3

15.0

1.3

1.2

Setco Automotive

Neutral

582

741

837

13.0

15.2

17.0

2.9

2.6

0.5

0.4

15.8

16.3

1.2

1.1

Tata Motors

Neutral

550

158,738

300,209

338,549

8.9

8.4

42.7

54.3

12.9

10.1

2.1

1.7

15.6

17.2

0.6

TVS Motor

Neutral

332

15,766

13,390

15,948

6.9

7.1

12.8

16.5

26.0

20.1

6.5

5.1

26.3

27.2

1.2

1.0

Amara Raja Batteries

Accumulate

997

1,076

17,037

5,717

6,733

18.7

18.9

38.4

48.9

26.0

20.4

6.5

5.3

25.3

24.8

2.8

2.3

Exide Industries

Neutral

187

15,899

7,439

8,307

15.0

8.1

9.3

23.1

20.1

3.2

2.9

14.3

16.7

1.8

1.6

Apollo Tyres

Neutral

194

9,893

12,877

14,504

14.3

13.9

21.4

23.0

9.1

8.5

1.4

1.2

16.4

15.2

0.9

Ceat

Buy

954

1,119

3,858

7,524

8,624

13.0

12.7

131.1

144.3

7.3

6.6

1.3

1.1

19.8

18.6

0.6

0.5

JK Tyres

Neutral

145

3,299

7,455

8,056

15.0

21.8

24.5

6.7

5.9

1.4

1.1

22.8

21.3

0.6

0.5

Swaraj Engines

Neutral

1,162

1,443

660

810

15.2

16.4

54.5

72.8

21.3

16.0

6.6

6.0

31.5

39.2

2.0

1.6

Subros

Neutral

105

630

1,488

1,681

11.7

11.9

6.4

7.2

16.4

14.6

1.7

1.6

10.8

11.4

0.7

0.6

Indag Rubber

Neutral

186

489

286

326

19.8

16.8

11.7

13.3

15.9

14.0

2.7

2.5

17.8

17.1

1.4

1.2

Capital Goods

ACE

Neutral

447

709

814

4.1

4.6

1.4

2.1

32.3

21.5

1.3

4.4

6.0

0.8

0.7

BEML

Accumulate

1,078

1,157

4,489

3,451

4,055

6.3

9.2

31.4

57.9

34.3

18.6

2.1

1.9

6.3

10.9

1.4

1.2

Bharat Electronics

Buy

1,219

1,414

29,256

8,137

9,169

16.8

17.2

58.7

62.5

20.8

19.5

3.2

2.9

44.6

46.3

2.6

2.3

www.angelbroking.com

Stock Watch

September 06, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Capital Goods

Voltas

Neutral

390

12,909

6,511

7,514

7.9

8.7

12.9

16.3

30.2

23.9

5.4

4.8

16.7

18.5

1.7

1.5

BGR Energy

Neutral

114

821

16,567

33,848

6.0

5.6

7.8

5.9

14.6

19.3

0.8

4.7

4.2

0.2

0.1

BHEL

Neutral

137

33,434

28,797

34,742

2.8

2.3

6.9

59.4

19.8

1.0

1.3

4.8

0.8

0.6

Blue Star

Accumulate

499

527

4,754

4,351

5,024

6.4

7.1

17.2

20.6

29.0

24.2

18.9

15.7

23.1

24.1

1.1

1.0

Crompton Greaves

Neutral

5,117

5,777

6,120

5.9

7.0

3.3

4.5

24.7

18.1

1.1

1.0

4.4

5.9

0.8

0.7

Greaves Cotton

Neutral

136

3,313

1,755

1,881

16.8

16.9

7.8

8.5

17.4

16.0

3.5

3.2

20.6

20.9

1.6

1.4

Inox Wind

Buy

192

286

4,253

5,605

6,267

15.7

16.4

24.8

30.0

7.7

6.4

2.2

1.6

25.9

24.4

0.8

0.7

KEC International

Neutral

135

3,481

9,294

10,186

7.9

8.1

9.9

11.9

13.7

11.4

2.0

1.7

15.6

16.3

0.6

Thermax

Neutral

821

9,782

5,421

5,940

7.3

25.7

30.2

31.9

27.2

3.9

3.5

12.2

13.1

1.7

1.5

VATech Wabag

Buy

565

681

3,079

3,136

3,845

8.9

9.1

26.0

35.9

21.7

15.7

2.7

2.3

13.4

15.9

0.9

0.7

Cement

ACC

Neutral

1,668

31,325

11,225

13,172

13.2

16.9

44.5

75.5

37.5

22.1

3.6

3.3

11.2

14.2

2.8

2.4

Ambuja Cements

Neutral

276

54,863

9,350

10,979

18.2

22.5

5.8

9.5

47.6

29.1

4.0

3.6

10.2

12.5

5.9

5.0

India Cements

Neutral

152

4,668

4,364

4,997

18.5

19.2

7.9

11.3

19.2

13.5

1.4

1.3

8.0

8.5

1.8

1.6

JK Cement

Neutral

783

5,473

4,398

5,173

15.5

17.5

31.2

55.5

25.1

14.1

3.0

2.6

12.0

15.5

1.8

1.5

J K Lakshmi Cement

Neutral

460

5,418

2,913

3,412

14.5

19.5

7.5

22.5

61.4

20.5

3.8

3.2

12.5

18.0

2.4

2.0

Orient Cement

Neutral

205

4,190

2,114

2,558

18.5

20.5

8.1

11.3

25.3

18.1

3.7

3.2

9.0

14.0

2.6

2.1

UltraTech Cement

Neutral

4,088

112,179

25,768

30,385

21.0

23.5

111.0

160.0

36.8

25.6

4.7

4.1

13.5

15.8

4.5

3.7

Construction

ITNL

Buy

2,395

8,946

10,017

31.0

31.6

8.1

9.1

9.0

8.0

0.3

4.2

5.0

3.6

3.3

KNR Constructions

Accumulate

701

802

1,973

1,385

1,673

14.7

14.0

41.2

48.5

17.0

14.5

3.2

2.7

14.9

15.2

1.5

1.2

Larsen & Toubro

Accumulate

1,502

1,700

140,025

67,665

77,249

10.7

11.5

57.3

71.2

26.2

21.1

2.4

2.3

12.6

14.3

2.3

1.9

Gujarat Pipavav Port

Neutral

186

8,994

705

788

52.2

51.7

5.0

5.6

37.2

33.2

3.7

3.3

11.2

12.4

10.6

Nagarjuna Const.

Neutral

4,817

8,842

9,775

9.1

8.8

5.3

6.4

16.4

13.5

1.3

1.2

8.2

9.1

0.7

0.6

PNC Infratech

Accumulate

121

129

3,112

2,350

2,904

13.4

13.7

48.0

42.0

2.5

2.9

0.5

0.4

16.8

13.2

1.4

1.2

Simplex Infra

Neutral

326

1,612

6,829

7,954

10.5

31.4

37.4

10.4

8.7

1.1

1.0

9.9

13.4

0.7

0.6

Power Mech Projects

Neutral

481

708

1,801

2,219

12.7

14.6

72.1

113.9

6.7

4.2

1.2

1.0

16.8

11.9

0.4

0.3

Sadbhav Engineering

Neutral

290

4,968

3,598

4,140

10.3

10.6

9.0

11.9

32.2

24.3

3.4

3.0

9.9

11.9

1.7

1.4

NBCC

Neutral

245

14,676

7,428

9,549

7.9

8.6

8.2

11.0

29.8

22.2

1.5

1.2

28.2

28.7

1.7

1.3

MEP Infra

Neutral

700

1,877

1,943

30.6

29.8

3.0

4.2

14.4

10.3

6.9

4.7

0.6

1.8

1.6

SIPL

Neutral

107

3,783

1,036

1,252

65.5

66.2

(8.4)

(5.6)

4.0

4.6

(22.8)

(15.9)

11.9

9.9

www.angelbroking.com

Stock Watch

September 06, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Construction

Engineers India

Neutral

270

9,086

1,725

1,935

16.0

19.1

11.4

13.9

23.7

19.4

3.3

3.2

13.4

15.3

4.2

3.8

Financials

Axis Bank

Neutral

599

143,003

58,081

66,459

3.5

32.4

44.6

18.5

13.4

2.4

2.1

13.6

16.5

Bank of Baroda

Neutral

166

38,341

19,980

23,178

1.8

11.5

17.3

14.5

9.6

1.7

1.4

8.3

10.1

Canara Bank

Neutral

281

15,282

15,225

16,836

1.8

14.5

28.0

19.4

10.1

1.3

1.1

5.8

8.5

Dewan Housing Finance Neutral

287

8,383

2,225

2,688

2.9

29.7

34.6

9.7

8.3

1.6

1.3

16.1

16.8

Equitas Holdings

Buy

180

235

6,037

939

1,281

11.7

11.5

5.8

8.2

31.0

22.0

2.7

2.4

10.9

11.5

Federal Bank

Neutral

12,036

9,353

10,623

2.9

4.4

5.8

15.9

12.1

1.5

1.4

9.5

11.0

HDFC

Neutral

1,438

227,343

11,475

13,450

3.4

45.3

52.5

31.7

27.4

6.1

5.4

20.2

20.5

HDFC Bank

Accumulate

1,284

1,350

325,189

46,097

55,433

4.5

58.4

68.0

22.0

18.9

3.9

3.2

18.8

18.6

ICICI Bank

Neutral

261

152,025

39,029

45,903

3.3

16.7

16.3

15.7

16.0

1.9

1.8

10.1

12.4

LIC Housing Finance

Neutral

575

29,008

3,712

4,293

2.6

2.5

39.0

46.0

14.7

12.5

2.8

2.4

19.9

20.1

Punjab Natl.Bank

Neutral

126

24,771

23,532

23,595

2.3

2.4

6.8

12.6

18.6

10.0

2.9

2.0

3.3

6.5

South Ind.Bank

Neutral

3,011

6,435

7,578

2.5

2.7

3.1

8.3

7.2

1.1

0.9

10.1

11.2

St Bk of India

Neutral

254

197,446

88,650

98,335

2.6

13.5

18.8

13.5

1.8

1.6

7.0

8.5

Union Bank

Neutral

140

9,631

13,450

14,925

2.3

25.5

34.5

5.5

4.1

0.8

0.7

7.5

10.2

Yes Bank

Neutral

1,388

58,413

8,978

11,281

3.3

3.4

74.0

90.0

18.8

15.4

3.6

3.0

17.0

17.2

FMCG

Asian Paints

Neutral

1,166

111,847

17,128

18,978

16.8

16.4

19.1

20.7

61.1

56.3

21.2

20.0

34.8

35.5

6.4

5.8

Britannia

Neutral

3,358

40,290

9,795

11,040

14.6

14.9

80.3

94.0

41.8

35.7

17.2

13.3

41.2

4.0

3.5

Colgate

Neutral

952

25,904

4,605

5,149

23.4

23.8

26.9

40.0

35.4

22.2

17.3

64.8

66.8

5.6

4.9

Dabur India

Neutral

297

52,194

8,315

9,405

19.8

20.7

8.1

9.2

36.6

32.3

10.2

8.5

31.6

31.0

5.9

5.2

GlaxoSmith Con*

Neutral

6,260

26,325

4,350

4,823

21.2

21.4

179.2

196.5

34.9

31.9

9.3

7.9

27.1

26.8

5.4

4.8

Godrej Consumer

Neutral

1,564

53,271

10,235

11,428

18.4

18.6

41.1

44.2

38.1

35.4

8.4

7.1

24.9

24.8

5.3

4.7

HUL

Neutral

920

199,078

35,252

38,495

17.6

17.4

20.4

21.9

45.0

42.0

37.0

32.5

82.2

77.3

5.5

5.0

ITC

Accumulate

262

283

316,798

40,059

44,439

39.0

39.2

9.1

10.1

28.9

26.0

7.9

6.9

27.2

26.5

7.4

6.6

Marico

Neutral

291

37,505

6,430

7,349

18.8

19.5

6.4

7.7

45.4

37.8

13.7

11.5

33.2

32.5

5.6

4.9

Nestle*

Neutral

6,449

62,181

10,073

11,807

20.7

21.5

124.8

154.2

51.7

41.8

21.2

19.1

34.8

36.7

6.0

5.1

Tata Global

Neutral

142

8,937

8,675

9,088

9.8

7.4

8.2

19.1

17.3

2.2

2.1

7.9

8.1

0.9

Procter & Gamble

Accumulate

6,594

7,369

21,405

2,939

3,342

23.2

23.0

146.2

163.7

45.1

40.3

101.0

96.8

25.3

23.5

6.8

5.9

Hygiene

HCL Tech^

Buy

784

1,000

110,646

49,242

57,168

20.5

55.7

64.1

14.1

12.2

2.9

2.2

20.3

17.9

2.1

1.7

www.angelbroking.com

Stock Watch

September 06, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Infosys

Buy

1,031

1,370

236,827

69,934

79,025

27.5

64.8

72.0

15.9

14.3

3.5

3.2

22.0

22.3

2.8

2.5

TCS

Buy

2,514

3,004

495,267

121,684

136,286

27.3

135.0

150.1

18.6

16.8

6.2

5.7

33.2

33.9

3.8

3.4

Tech Mahindra

Buy

471

700

45,754

30,347

33,685

17.0

37.5

41.3

12.6

11.4

2.7

2.4

21.8

20.7

1.2

1.1

Wipro

Buy

483

680

119,422

51,631

55,822

21.7

17.9

35.9

36.9

13.5

13.1

2.8

2.6

19.0

18.1

2.0

1.8

Media

D B Corp

Neutral

406

7,468

2,297

2,590

27.4

28.2

21.0

23.4

19.4

17.4

4.5

3.9

23.7

23.1

3.1

2.6

HT Media

Neutral

1,971

2,693

2,991

12.6

12.9

7.9

9.0

10.7

9.4

0.9

0.8

7.8

8.3

0.3

0.2

Jagran Prakashan

Accumulate

195

205

6,381

2,355

2,635

28.0

9.9

10.8

19.7

18.1

3.9

3.4

21.7

2.7

2.4

Sun TV Network

Neutral

470

18,538

2,850

3,265

70.1

71.0

26.2

30.4

18.0

15.5

4.6

4.1

24.3

25.6

6.1

5.2

Hindustan Media

Neutral

280

2,052

1,016

1,138

24.3

25.2

27.3

30.1

10.2

9.3

2.0

1.7

16.2

15.8

1.3

1.2

Ventures

TV Today Network

Buy

303

363

1,806

637

743

27.5

18.4

21.4

16.5

14.2

2.9

2.4

17.4

17.2

2.4

2.0

Metals & Mining

Coal India

Neutral

333

210,019

84,638

94,297

21.4

22.3

24.5

27.1

13.6

12.3

5.7

5.4

42.6

46.0

2.0

1.8

Hind. Zinc

Neutral

227

96,084

14,252

18,465

55.9

48.3

15.8

21.5

14.4

10.6

2.3

2.1

17.0

20.7

6.7

5.2

Hindalco

Neutral

157

32,493

107,899

112,095

7.4

8.2

9.2

13.0

17.1

12.1

0.8

4.8

6.6

0.8

JSW Steel

Neutral

1,775

42,895

53,201

58,779

16.1

16.2

130.6

153.7

13.6

11.6

1.8

1.6

14.0

14.4

1.6

1.4

NMDC

Neutral

108

42,660

6,643

7,284

44.4

47.7

7.1

7.7

15.2

14.0

1.3

8.8

9.2

4.2

3.8

SAIL

Neutral

19,886

47,528

53,738

(0.7)

2.1

(1.9)

2.6

18.5

0.5

(1.6)

3.9

1.3

1.2

Vedanta

Neutral

172

51,067

71,744

81,944

19.2

21.7

13.4

20.1

12.9

8.6

1.1

1.0

8.4

11.3

1.1

0.8

Tata Steel

Neutral

374

36,294

121,374

121,856

7.2

8.4

18.6

34.3

20.1

10.9

1.3

1.2

6.1

10.1

0.9

Oil & Gas

Cairn India

Neutral

202

37,797

9,127

10,632

4.3

20.6

8.8

11.7

22.9

17.2

0.7

3.3

4.2

5.6

4.6

GAIL

Neutral

394

50,022

56,220

65,198

9.3

10.1

27.1

33.3

14.6

11.8

1.3

1.2

9.3

10.7

1.1

0.9

ONGC

Neutral

239

204,348

137,222

152,563

15.0

21.8

19.5

24.1

12.3

9.9

1.1

1.0

8.5

10.1

1.8

1.6

Indian Oil Corp

Neutral

573

139,231

373,359

428,656

5.9

5.5

54.0

59.3

10.6

9.7

1.6

1.5

16.0

15.6

0.5

Reliance Industries

Neutral

1,013

328,411

301,963

358,039

12.1

12.6

87.7

101.7

11.6

10.0

1.2

1.1

10.7

11.3

1.6

1.3

Pharmaceuticals

Alembic Pharma

Neutral

621

11,710

3,483

4,083

20.2

21.4

24.3

30.4

25.6

20.4

5.8

4.6

25.5

25.3

3.3

2.7

Aurobindo Pharma

Accumulate

779

877

45,585

15,720

18,078

23.7

41.4

47.3

18.8

16.5

4.9

3.8

29.6

26.1

3.1

2.7

Sanofi India*

Neutral

4,475

10,306

2,357

2,692

17.3

153.5

169.2

29.2

26.5

4.9

4.0

25.8

28.4

4.1

3.3

Cadila Healthcare

Neutral

385

39,363

11,126

13,148

22.0

17.1

20.0

22.5

19.2

5.8

4.6

28.8

26.6

3.5

2.9

Cipla

Sell

578

490

46,430

15,378

18,089

17.4

18.4

21.6

27.2

26.8

21.2

3.5

3.0

13.7

15.2

3.2

2.7

Dr Reddy's

Neutral

3,123

53,254

16,043

18,119

23.1

24.7

126.0

157.8

24.8

19.8

3.7

3.2

15.7

17.1

3.3

2.9

www.angelbroking.com

Stock Watch

September 06, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Pharmaceuticals

Dishman Pharma

Sell

174

2,814

1,718

1,890

22.7

22.8

9.5

11.3

18.4

15.4

1.8

1.6

10.1

10.9

2.1

1.8

GSK Pharma*

Neutral

2,977

25,219

3,528

3,811

16.6

18.8

51.8

59.4

57.5

50.1

15.4

15.3

26.3

30.6

6.9

6.5

Indoco Remedies

Sell

323

225

2,975

1,112

1,289

18.2

13.2

15.6

24.5

20.7

4.4

3.7

19.2

2.8

2.4

Ipca labs

Accumulate

541

613

6,829

3,303

3,799

15.3

17.3

19.7

31.3

27.5

2.7

2.5

9.1

9.4

2.2

1.9

Lupin

Buy

1,516

1,809

68,352

15,912

18,644

26.4

26.7

58.1

69.3

26.1

21.9

5.1

4.2

21.4

20.9

4.4

3.6

Sun Pharma

Buy

782

944

188,228

31,129

35,258

30.0

30.9

28.0

32.8

27.9

23.8

4.3

3.6

18.7

18.9

5.6

4.8

Power

Tata Power

Neutral

21,367

36,916

39,557

17.4

27.1

5.1

6.3

15.5

12.5

1.4

1.3

9.0

10.3

1.6

1.4

NTPC

Neutral

160

131,721

86,605

95,545

17.5

20.8

11.8

13.4

13.5

11.9

1.4

1.3

10.5

11.1

2.9

Power Grid

Neutral

183

95,947

25,763

29,762

74.3

73.1

14.8

17.3

12.4

10.6

1.9

1.7

16.9

17.5

8.0

7.6

Real Estate

MLIFE

Buy

432

522

1,773

1,152

1,300

22.7

24.6

29.9

35.8

14.5

12.1

1.1

1.0

7.6

8.6

2.3

1.9

Telecom

Bharti Airtel

Neutral

319

127,497

105,086

114,808

34.5

34.7

12.2

16.4

26.1

19.5

1.8

1.7

6.8

8.4

2.1

1.8

Idea Cellular

Neutral

30,265

40,133

43,731

37.2

37.1

6.4

6.5

13.1

12.9

1.1

1.0

8.2

7.6

1.8

1.5

zOthers

Abbott India

Neutral

4,615

9,806

3,153

3,583

14.1

14.4

152.2

182.7

30.3

25.3

148.9

127.1

25.6

26.1

2.8

2.4

Bajaj Electricals

Neutral

268

2,710

5,099

5,805

5.7

5.9

11.4

14.6

23.6

18.4

3.2

2.8

13.4

15.1

0.5

Finolex Cables

Neutral

424

6,492

2,883

3,115

12.0

12.1

14.2

18.6

29.9

22.8

15.9

13.9

15.8

14.6

1.9

1.8

Goodyear India*

Accumulate

579

631

1,335

1,598

1,704

10.4

10.2

49.4

52.6

11.7

11.0

54.1

47.5

18.2

17.0

0.5

69.4

Hitachi

Neutral

1,505

4,092

2,081

2,433

8.8

8.9

33.4

39.9

45.1

37.7

36.4

30.3

22.1

21.4

2.0

1.6

Jyothy Laboratories

Neutral

317

5,741

1,440

2,052

11.5

13.0

8.5

10.0

37.3

31.7

9.0

8.4

18.6

19.3

4.3

3.0

Page Industries

Neutral

15,198

16,951

2,450

3,124

20.1

17.6

299.0

310.0

50.8

49.0

338.5

258.4

47.1

87.5

7.0

5.5

Relaxo Footwears

Neutral

448

5,381

2,085

2,469

9.2

8.2

7.6

8.0

59.3

56.4

23.0

19.6

17.9

18.8

2.7

2.3

Siyaram Silk Mills

Neutral

1,329

1,245

1,799

2,040

11.6

11.7

104.9

122.4

12.7

10.9

2.1

1.8

16.4

0.9

0.8

Styrolution ABS India*

Neutral

569

1,001

1,440

1,537

9.2

9.0

40.6

42.6

14.0

13.4

35.8

32.5

12.3

11.6

0.7

0.6

TVS Srichakra

Accumulate

2,645

2,932

2,025

2,304

2,614

13.7

13.8

231.1

266.6

11.4

9.9

297.2

234.0

33.9

29.3

0.9

0.8

HSIL

Neutral

359

2,593

2,384

2,515

15.8

16.3

15.3

19.4

23.4

18.5

23.3

20.0

7.8

9.3

1.3

1.2

Kirloskar Engines India

Neutral

286

4,132

2,554

2,800

9.9

10.0

10.5

12.1

27.2

23.6

11.4

10.7

11.7

1.3

1.1

Ltd

M M Forgings

Neutral

429

518

546

608

20.4

20.7

41.3

48.7

10.4

8.8

58.8

52.0

16.6

17.0

0.8

0.7

Banco Products (India)

Neutral

238

1,704

1,353

1,471

12.3

12.4

14.5

16.3

16.4

14.6

22.7

20.4

14.5

14.6

1.2

129.1

Competent Automobiles Neutral

179

110

1,137

1,256

3.1

2.7

28.0

23.6

6.4

7.6

34.4

31.1

14.3

11.5

0.1

Nilkamal

Neutral

1,260

1,881

1,995

2,165

10.7

10.4

69.8

80.6

18.1

15.6

72.0

62.6

16.6

16.5

0.9

0.8

www.angelbroking.com

Stock Watch

September 06, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

zOthers

Visaka Industries

Neutral

191

303

1,051

1,138

10.3

10.4

21.0

23.1

9.1

8.3

24.5

22.9

9.0

9.2

0.5

Transport Corporation of

Neutral

191

1,464

2,671

2,911

8.5

8.8

13.9

15.7

13.8

12.2

1.9

1.7

13.7

13.8

0.7

0.6

India

Elecon Engineering

Accumulate

636

1,482

1,660

13.7

14.5

3.9

5.8

15.0

10.1

3.5

3.2

7.8

10.9

0.7

Surya Roshni

Neutral

194

851

3,342

3,625

7.8

7.5

17.3

19.8

11.2

9.8

21.3

17.1

10.5

10.8

0.5

MT Educare

Neutral

138

548

366

417

17.7

18.2

9.4

10.8

14.7

12.7

3.3

2.8

22.2

22.3

1.4

1.2

Radico Khaitan

Buy

101

125

1,340

1,659

1,802

13.0

13.2

6.3

7.4

15.9

13.7

1.4

1.3

8.6

9.3

1.2

1.1

Garware Wall Ropes

Accumulate

478

524

1,046

873

938

12.9

13.1

30.9

34.9

15.5

13.7

2.4

2.1

15.7

15.2

1.1

1.0

Wonderla Holidays

Neutral

410

2,314

287

355

38.0

40.0

11.3

14.2

36.2

28.8

5.2

4.5

21.4

23.9

7.7

6.3

Linc Pen & Plastics

Neutral

280

414

382

420

9.3

9.5

13.5

15.7

20.8

17.8

3.6

3.1

17.1

17.3

1.2

1.0

The Byke Hospitality

Neutral

159

638

287

384

20.5

7.6

10.7

20.9

14.9

4.4

3.5

20.7

23.5

2.2

1.7

Interglobe Aviation

Neutral

871

31,369

21,122

26,005

14.5

27.6

110.7

132.1

7.9

6.6

47.1

33.6

168.5

201.1

1.5

1.1

Coffee Day Enterprises

Neutral

243

5,007

2,964

3,260

20.5

21.2

4.7

8.0

30.4

2.8

2.6

5.5

8.5

2.1

1.9

Ltd

Navneet Education

Neutral

104

2,477

1,062

1,147

24.0

6.1

6.6

17.1

15.7

3.5

3.1

20.6

19.8

2.4

2.2

Navkar Corporation

Buy

192

265

2,738

408

612

42.9

42.3

6.8

11.5

28.4

16.7

2.0

1.8

6.9

10.5

7.6

5.1

UFO Moviez

Neutral

476

1,314

619

685

33.2

33.4

30.0

34.9

15.9

13.7

2.2

1.9

13.8

13.9

1.8

1.5

VRL Logistics

Neutral

291

2,652

1,902

2,119

16.7

16.6

14.6

16.8

20.0

17.3

4.4

3.8

21.9

22.2

1.5

1.3

Team Lease Serv.

Neutral

1,113

1,903

3,229

4,001

1.5

1.8

22.8

32.8

48.9

33.9

5.2

4.5

10.7

13.4

0.5

0.4

S H Kelkar & Co.

Neutral

341

4,937

1,036

1,160

15.1

15.0

6.1

7.2

55.9

47.6

6.0

5.5

10.7

11.5

4.6

4.1

Quick Heal

Neutral

237

1,661

408

495

27.3

27.0

7.7

8.8

30.6

27.0

2.8

2.9

9.3

10.6

3.2

2.7

Narayana Hrudaya

Neutral

312

6,370

1,873

2,166

11.5

11.7

2.6

4.0

117.9

78.6

7.2

6.5

6.1

8.3

3.5

3.0

Manpasand Bever.

Neutral

737

3,686

836

1,087

19.6

19.4

16.9

23.8

43.6

30.9

5.2

4.6

12.0

14.8

4.2

3.1

Parag Milk Foods

Neutral

339

2,848

1,919

2,231

9.3

9.6

9.5

12.9

35.9

26.2

5.6

4.6

15.5

17.5

1.6

1.4

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on September 02, 2016

www.angelbroking.com

Market Outlook

September 06, 2016

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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