Market Outlook
December 06, 2016
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian market is expected to open on a flat note tracking the SGX Nifty.
BSE Sensex
0.5
118
26,349
Nifty
0.5
42
8,129
The US markets touched new high on Monday, with Dow Jones seeing buying
interest by investors and traders. Despite political concern over Europe, investors
Mid Cap
0.7
81
12,280
back home in US took interest in financial services firm. The US market seems to
Small Cap
0.3
32
12,115
have discounted a partial hike in interest rate when the Fed meets next week.
Bankex
0.8
168
21,042
European markets remained positive despite the political turmoil in Italy, following
Sundays referendum. The markets got off to a weak start, but quickly staged a
Global Indices
Chg (%)
(Pts)
(Close)
recovery before settling into positive trend.
Dow Jones
0.2
45
19,216
Indian markets remained volatile on Monday however it closed on a positive note. A
Nasdaq
1.0
53
5,309
flat US markets and nervous Asian markets after Italian’s NO vote, there was some
FTSE
0.2
16
6,747
selling visible in the early traders, however during the day European market opened
Nikkei
(0.8)
(151)
18,275
on a positive note which lent comfort to domestic investors and selective counters
Hang Seng
(0.3)
(59)
22,506
saw buying interest.
Shanghai Com
(1.2)
(39)
3,205
News Analysis
India PMI Services shrinks in November
Advances / Declines
BSE
NSE
Detailed analysis on Pg2
Advances
1,519
909
Declines
1,131
695
Investor’s Ready Reckoner
Unchanged
145
80
Key Domestic & Global Indicators
Stock Watch: Latest investment recommendations on 150+ stocks
Volumes (` Cr)
Refer Pg5 onwards
BSE
2,141
Top Picks
NSE
14,419
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
Amara Raja BatteriesAuto & Auto Ancill.
Buy
917
1,167
27.3
Net Inflows (` Cr)
Net
Mtd
Ytd
Alkem Laboratories Pharmaceuticals
Buy
1,703
1,989
16.8
FII
(317)
(718)
26,559
HCL Tech
IT
Buy
793
1,000
26.2
MFs
163
12,985
35,038
Power Grid Corp. Power
Buy
185
223
20.6
Navkar Corporation Others
Buy
175
265
51.2
More Top Picks on Pg3
Top Gainers
Price (`)
Chg (%)
Suntv
493
12.6
Key Upcoming Events
Previous
Consensus
Trent
199
11.6
Date
Region
Event Description
Reading
Expectations
Adanipower
31
6.9
Dec 6 Euro Zone Euro Zone GDP s.a. (QoQ)
0.3
0.3
Mrpl
104
6.9
Dec 7 UK
Industrial Production (YoY)
0.3
0.5
Jpinfratec
8
6.0
Dec 7 India
RBI Reserve Repo rate
5.8
--
Dec 7 India
RBI Repo rate
6.3
--
Dec 7 China
Exports YoY%
(7.3)
(5.0)
Top Losers
Price (`)
Chg (%)
More Events on Pg4
Crompgreav
69
(9.3)
Unitech
5
(5.4)
Bergepaint
217
(3.4)
Bfutilitie
414
(3.3)
Ramcocem
567
(3.0)
As on December 05, 2016
Market Outlook
December 06, 2016
News Analysis
India PMI Services shrinks in November
The Nikkei Services Purchasing Managers Index (PMI) fell to 46.7 in November
from 54.5 in the previous month. This is the sharpest reduction in the reading in
over three years. As per economist a reading above 50 generally indicates growth
and shows confidence while a reading below 50 indicates contractions and
indicates towards slow down. The GDP data released by CSO last week showed
Indian economy grew at a healthy pace of 7.2%. While government spending
continues to drive the growth, lack of investment by private corporates is a concern
and that remains a concern. Part of the contraction in PMI for the month can be
attributed to the recent demonetization. The coming months data should give a
much clearer picture as far as economic data is concerned.
Economic and Political News
Centre weighing hike in EPFO wage ceiling to `25,000
Make e-payments if contract exceeds `5000 says Finance Ministry
Govt aims at `1.3 lakh cr disclosure from IDS-II
Corporate News
Lupin gets USFDA approval for pain relief tablets
Dr Reddy’s launches antifungal cream in US market
NCC hopes to improve revenues and margins in second half
Merger of associate banks on track
Market Outlook
December 06, 2016
Top Picks ★★★★★
Large Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
To outpace battery industry growth due to better
Amara Raja Batteries
15,656
917
1,167
27.3
technological products leading to market share gains in
both the automotive OEM and replacement segments.
Strong growth in domestic business due to its leadership in
Alkem Laboratories
20,361
1,703
1,989
16.8
acute therapeutic segment. Alkem expects to launch more
products in USA, which bodes for its international business.
The stock is trading at attractive valuations and is factoring
HCL Tech
1,11,809
793
1,000
26.2
all the bad news.
Back on the growth trend; expect a long term growth of 14%
Infosys
2,20,828
961
1,249
29.9
to be a US$20bn in FY2020.
Strong order backlog and improvement in execution would
Larsen & Tourbo
1,26,576
1,358
1,634
20.3
trigger the growth for the L&T
One of the largest pharma companies with strong
international presence. It has a rich pipeline of ANDAs
Lupin
69,276
1,537
1,809
17.7
which is also one of the largest among the generic
companies.
Going forward, we expect the company to report strong
Power Grid Corporation
96,758
185
223
20.6
top-line CAGR of ~16% and bottom-line CAGR of ~19%
over FY16-18 on back of strong capitalization guidance
Source: Company, Angel Research
Mid Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
We expect the company would report strong profitability
Asian Granito
633
211
351
66.7
owing to better product mix, higher B2C sales and
amalgamation synergy.
Among the top 4 players in the consumer durables segment.
Bajaj Electricals
2,209
219
274
25.2
Improved profitability backed by turn around in E&P
segment. Strong order book lends earnings visibility.
Favourable outlook for AC industry augurs well for Cooling
Blue Star
4,595
482
634
31.6
products business which is outgrowing the market. EMPPAC
division's is likely to turn around on improving economy
With a focus on the low and medium income (LMI)
Dewan Housing Finance
7,812
250
350
40.3
consumer segment, the company has increased its presence
in tier-II & III cities where the growth opportunity is immense.
Strong loan growth backed by diversified loan portfolio and
adequate CAR. ROE & ROA likely to remain decent as risk of
Equitas Holdings
5,401
161
235
45.9
dilution remains low. Attractive valuations considering
growth.
Economic recovery to have favourable impact on advertising
& circulation revenue growth. Further, the acquisition of a
Jagran Prakashan
5,623
172
225
30.8
radio business (Radio City) would also boost the company's
revenue growth.
Speedier execution and speedier sales, strong revenue
Mahindra Lifespace
1,464
357
522
46.3
visibilty in short-to-long run, attractive valuations
We expect the company to report strong growth on back of
healthy growth in domestic branded sales (owing to
Mirza International
960
80
107
34.1
aggressive ad spend and addition in the number of EBOs &
multi-brand outlets [MBOs]) and healthy export revenues.
Massive capacity expansion along with rail advantage at
Navkar Corporation
2,499
175
265
51.2
ICD as well CFS augurs well for the company.
Strong brands and distribution network would boost growth
Siyaram Silk Mills
1,149
1,226
1,605
31.0
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 radio business,
TV Today Network
1,753
294
385
31.0
and anticipated growth in ad spends by corporate to benefit
the stock.
Source: Company, Angel Research
Market Outlook
December 06, 2016
Key Upcoming Events
Global economic events release calendar
Date
Time
Country
Event Description
Unit
Period
Bloomberg Data
Last Reported Estimated
Dec 6, 2016
3:30PM
Euro Zone
Euro-Zone GDP s.a. (QoQ)
% Change
3Q F
0.30
0.30
Dec 7, 2016
2:30PM
India
RBI Reverse Repo rate
%
Dec 7
5.75
5.50
3:00PM
UK
Industrial Production (YoY)
% Change
Oct
0.30
0.50
2:30PM
India
RBI Repo rate
%
Dec 7
6.25
6.00
China
Exports YoY%
% Change
Nov
(7.30)
(5.00)
Dec 8, 2016
2:30PM
India
RBI Cash Reserve ratio
%
Dec 7
4.00
4.00
7:00PM
US
Initial Jobless claims
Thousands
Dec 3
268.00
255.00
6:15PM
Euro Zone
ECB announces interest rates
%
Dec 8
--
--
Dec 9, 2016
India
Imports YoY%
% Change
Nov
8.10
--
India
Exports YoY%
% Change
Nov
9.59
--
7:00AM
China
Consumer Price Index (YoY)
% Change
Nov
2.10
2.20
Dec 12, 2016
5:30PM
India
Industrial Production YoY
% Change
Oct
0.70
--
Dec 13, 2016
3:00PM
UK
CPI (YoY)
% Change
Nov
0.90
--
7:30AM
China
Industrial Production (YoY)
% Change
Nov
6.10
6.10
Dec 14, 2016
3:00PM
UK
Jobless claims change
% Change
Nov
9.80
--
7:45PM
US
Industrial Production
%
Nov
0.04
(0.20)
12:00PM
India
Monthly Wholesale Prices YoY%
% Change
Nov
3.39
--
US
Producer Price Index (mom)
% Change
Nov
0.40
--
Dec 15, 2016
2:00PM
Germany
PMI Manufacturing
Value
Dec P
54.30
--
7:00PM
US
Consumer price index (mom)
% Change
Nov
0.40
0.20
5:30PM
UK
BOE Announces rates
% Ratio
Dec 15
0.25
--
12:30AM
US
FOMC rate decision
%
Dec 14
0.50
0.75
Dec 16, 2016
7:00PM
US
Housing Starts
Thousands
Nov
1,323.00
1,225.00
7:00PM
US
Building permits
Thousands
Nov
1,260.00
--
3:30PM
Euro Zone
Euro-Zone CPI (YoY)
%
Nov F
0.60
--
Dec 21, 2016
8:30PM
Euro Zone
Euro-Zone Consumer Confidence
Value
Dec A
(6.10)
--
7:00PM
US
GDP Qoq (Annualised)
% Change
3Q T
3.20
3.10
Dec 22, 2016
3:00PM
UK
GDP (YoY)
% Change
3Q F
2.30
--
Dec 23, 2016
8:30PM
US
New home sales
Thousands
Nov
563.00
--
8:30PM
US
Existing home sales
Million
Nov
5.60
--
Source: Bloomberg, Angel Research
Stock Watch
December 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
200
-
3,882
1,937
2,164
13.3
14.3
9.0
11.0
22.2
18.2
3.9
3.4
18.4
19.8
2.0
1.8
United Phosphorus
Neutral
663
-
33,586
15,176
17,604
18.5
18.5
37.4
44.6
17.7
14.9
3.5
2.9
21.4
21.2
2.3
2.0
Auto & Auto Ancillary
Ashok Leyland
Buy
77
111
21,970
22,407
26,022
10.6
10.6
5.2
6.4
14.8
12.0
3.3
2.8
23.6
24.7
1.1
0.9
Bajaj Auto
Neutral
2,738
-
79,214
25,093
27,891
19.5
19.2
143.9
162.5
19.0
16.9
5.3
4.6
30.3
29.4
2.9
2.5
Bharat Forge
Neutral
873
-
20,325
7,726
8,713
20.5
21.2
35.3
42.7
24.7
20.5
4.6
4.1
18.9
20.1
2.7
2.3
Eicher Motors
Neutral
22,748
-
61,787
16,583
20,447
17.5
18.0
598.0
745.2
38.0
30.5
13.0
9.9
41.2
38.3
3.6
2.8
Gabriel India
Buy
108
130
1,554
1,544
1,715
9.0
9.3
5.4
6.3
20.0
17.2
3.8
3.4
18.9
19.5
1.0
0.8
Hero Motocorp
Accumulate
3,224
3,541
64,387
30,958
34,139
15.7
15.7
193.6
208.3
16.7
15.5
6.5
5.4
34.2
30.5
1.9
1.7
Jamna Auto Industries Neutral
171
-
1,368
1,486
1,620
9.8
9.9
15.0
17.2
11.4
10.0
2.5
2.1
21.8
21.3
1.0
0.9
L G Balakrishnan & Bros Neutral
604
-
948
1,302
1,432
11.6
11.9
43.7
53.0
13.8
11.4
2.0
1.8
13.8
14.2
0.8
0.7
Mahindra and Mahindra Neutral
1,181
-
73,379
46,534
53,077
11.6
11.7
67.3
78.1
17.6
15.1
2.9
2.5
15.4
15.8
1.6
1.3
Maruti
Buy
5,204
6,006
157,212
68,057
82,958
15.8
15.5
212.1
261.2
24.5
19.9
4.9
4.0
19.8
20.3
2.0
1.6
Minda Industries
Neutral
302
-
2,392
2,728
3,042
9.0
9.1
68.2
86.2
4.4
3.5
1.0
0.8
23.8
24.3
0.9
0.8
Motherson Sumi
Neutral
313
-
43,856
45,896
53,687
7.8
8.3
13.0
16.1
24.0
19.4
7.7
6.2
34.7
35.4
1.0
0.9
Rane Brake Lining
Neutral
895
-
708
511
562
11.3
11.5
28.1
30.9
31.8
28.9
4.9
4.4
15.3
15.0
1.5
1.4
Setco Automotive
Neutral
38
-
507
741
837
13.0
13.0
15.2
17.0
2.5
2.2
0.4
0.4
15.8
16.3
1.1
1.0
Tata Motors
Neutral
440
-
126,921
300,209
338,549
8.9
8.4
42.7
54.3
10.3
8.1
1.7
1.4
15.6
17.2
0.5
0.5
TVS Motor
Neutral
357
-
16,968
13,390
15,948
6.9
7.1
12.8
16.5
28.0
21.6
7.0
5.5
26.3
27.2
1.3
1.1
Amara Raja Batteries
Buy
917
1,167
15,656
5,504
6,605
17.6
17.5
33.4
40.9
27.4
22.4
6.1
4.9
22.1
22.0
2.8
2.4
Exide Industries
Neutral
176
-
14,994
7,439
8,307
15.0
15.0
8.1
9.3
21.8
19.0
3.1
2.7
14.3
16.7
1.6
1.5
Apollo Tyres
Buy
187
235
9,501
12,877
14,504
14.3
13.9
21.4
23.0
8.7
8.1
1.4
1.2
16.4
15.2
0.9
0.8
Ceat
Accumulate
1,262
1,450
5,106
7,524
8,624
13.0
12.7
131.1
144.3
9.6
8.8
1.8
1.5
19.8
18.6
0.8
0.7
JK Tyres
Neutral
118
-
2,667
7,455
8,056
15.0
15.0
21.8
24.5
5.4
4.8
1.1
0.9
22.8
21.3
0.5
0.4
Swaraj Engines
Neutral
1,350
-
1,676
660
810
15.2
16.4
54.5
72.8
24.8
18.5
7.7
7.0
31.5
39.2
2.4
1.9
Subros
Neutral
166
-
996
1,488
1,681
11.7
11.9
6.4
7.2
26.0
23.2
2.7
2.5
10.8
11.4
0.9
0.8
Indag Rubber
Neutral
178
-
468
286
326
19.8
16.8
11.7
13.3
15.2
13.4
2.6
2.4
17.8
17.1
1.3
1.1
Capital Goods
ACE
Neutral
49
-
487
709
814
4.1
4.6
1.4
2.1
35.1
23.4
1.5
1.4
4.4
6.0
0.8
0.7
BEML
Neutral
841
-
3,502
3,451
4,055
6.3
9.2
31.4
57.9
26.8
14.5
1.6
1.5
6.3
10.9
1.1
1.0
Bharat Electronics
Neutral
1,431
-
31,973
8,137
9,169
16.8
17.2
58.7
62.5
24.4
22.9
3.8
3.4
44.6
46.3
2.9
2.6
Stock Watch
December 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
Buy
305
407
10,080
6,511
7,514
7.9
8.7
12.9
16.3
23.6
18.7
4.3
3.7
16.7
18.5
1.3
1.1
BGR Energy
Neutral
117
-
844
16,567
33,848
6.0
5.6
7.8
5.9
15.0
19.8
0.9
0.8
4.7
4.2
0.2
0.1
BHEL
Neutral
129
-
31,476
28,797
34,742
-
2.8
2.3
6.9
55.9
18.6
1.0
0.9
1.3
4.8
0.7
0.5
Blue Star
Buy
482
634
4,595
4,283
5,077
5.9
7.3
14.9
22.1
32.4
21.8
6.3
5.3
20.4
26.4
1.1
0.9
Crompton Greaves
Neutral
69
-
4,325
5,777
6,120
5.9
7.0
3.3
4.5
20.9
15.3
0.9
0.9
4.4
5.9
0.7
0.6
Greaves Cotton
Neutral
127
-
3,109
1,755
1,881
16.8
16.9
7.8
8.5
16.3
15.0
3.3
3.0
20.6
20.9
1.5
1.3
Inox Wind
Neutral
188
-
4,170
5,605
6,267
15.7
16.4
24.8
30.0
7.6
6.3
2.1
1.6
25.9
24.4
0.8
0.7
KEC International
Neutral
138
-
3,559
9,294
10,186
7.9
8.1
9.9
11.9
14.0
11.6
2.1
1.8
15.6
16.3
0.6
0.6
Thermax
Neutral
829
-
9,879
5,421
5,940
7.3
7.3
25.7
30.2
32.3
27.5
3.9
3.6
12.2
13.1
1.7
1.6
VATech Wabag
Buy
491
681
2,675
3,136
3,845
8.9
9.1
26.0
35.9
18.9
13.7
2.4
2.0
13.4
15.9
0.8
0.6
Cement
ACC
Neutral
1,342
-
25,204
11,225
13,172
13.2
16.9
44.5
75.5
30.2
17.8
2.9
2.6
11.2
14.2
2.3
1.9
Ambuja Cements
Neutral
210
-
41,649
9,350
10,979
18.2
22.5
5.8
9.5
36.2
22.1
3.0
2.7
10.2
12.5
4.5
3.8
India Cements
Neutral
112
-
3,448
4,364
4,997
18.5
19.2
7.9
11.3
14.2
9.9
1.0
1.0
8.0
8.5
1.6
1.4
JK Cement
Neutral
726
-
5,077
4,398
5,173
15.5
17.5
31.2
55.5
23.3
13.1
2.8
2.4
12.0
15.5
1.7
1.4
J K Lakshmi Cement
Buy
374
565
4,400
2,913
3,412
14.5
19.5
7.5
22.5
49.9
16.6
3.1
2.6
12.5
18.0
2.1
1.7
Orient Cement
Buy
132
215
2,710
2,114
2,558
18.5
20.5
8.1
11.3
16.3
11.7
2.4
2.0
9.0
14.0
1.9
1.5
UltraTech Cement
Neutral
3,589
-
98,508
25,768
30,385
21.0
23.5
111.0
160.0
32.3
22.4
4.1
3.6
13.5
15.8
3.9
3.3
Construction
ITNL
Neutral
100
-
3,301
8,946
10,017
31.0
31.6
8.1
9.1
12.4
11.0
0.5
0.5
4.2
5.0
3.7
3.4
KNR Constructions
Neutral
784
-
2,206
1,385
1,673
14.7
14.0
41.2
48.5
19.0
16.2
3.6
3.1
14.9
15.2
1.7
1.4
Larsen & Toubro
Buy
1,358
1,634
126,576
111,017
124,908
11.0
11.0
61.1
66.7
22.2
20.4
2.7
2.5
13.1
12.9
2.2
2.0
Gujarat Pipavav Port
Neutral
139
-
6,727
705
788
52.2
51.7
5.0
5.6
27.8
24.9
2.7
2.5
11.2
11.2
9.2
7.7
Nagarjuna Const.
Neutral
79
-
4,397
8,842
9,775
9.1
8.8
5.3
6.4
14.9
12.4
1.2
1.1
8.2
9.1
0.7
0.6
PNC Infratech
Buy
110
143
2,818
2,350
2,904
13.1
13.2
9.0
8.8
12.2
12.5
0.4
0.4
15.9
13.9
1.3
1.1
Simplex Infra
Neutral
298
-
1,472
6,829
7,954
10.5
10.5
31.4
37.4
9.5
8.0
1.0
0.9
9.9
13.4
0.6
0.5
Power Mech Projects
Neutral
452
-
664
1,801
2,219
12.7
14.6
72.1
113.9
6.3
4.0
1.2
1.0
16.8
11.9
0.4
0.3
Sadbhav Engineering
Accumulate
274
298
4,700
3,598
4,140
10.3
10.6
9.0
11.9
30.4
23.0
3.2
2.8
9.9
11.9
1.6
1.4
NBCC
Neutral
227
-
13,590
7,428
9,549
7.9
8.6
8.2
11.0
27.6
20.6
1.4
1.1
28.2
28.7
1.5
1.1
MEP Infra
Neutral
35
-
569
1,877
1,943
30.6
29.8
3.0
4.2
11.7
8.3
5.7
3.8
0.6
0.6
1.7
1.5
SIPL
Neutral
90
-
3,170
1,036
1,252
65.5
66.2
(8.4)
(5.6)
3.4
3.9
(22.8)
(15.9)
11.3
9.4
Stock Watch
December 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
299
-
10,088
1,725
1,935
16.0
19.1
11.4
13.9
26.3
21.5
3.6
3.5
13.4
15.3
4.8
4.3
Financials
Axis Bank
Buy
461
630
110,030
46,932
53,575
3.5
3.4
32.4
44.6
14.3
10.3
1.8
1.6
13.6
16.5
-
-
Bank of Baroda
Neutral
163
-
37,443
19,980
23,178
1.8
1.8
11.5
17.3
14.1
9.4
1.6
1.3
8.3
10.1
-
-
Canara Bank
Neutral
312
-
16,933
15,225
16,836
1.8
1.8
14.5
28.0
21.5
11.1
1.5
1.2
5.8
8.5
-
-
Dewan Housing Finance Buy
250
350
7,812
2,225
2,688
2.9
2.9
29.7
34.6
8.4
7.2
1.4
1.2
16.1
16.8
-
-
Equitas Holdings
Buy
161
235
5,401
939
1,281
11.7
11.5
5.8
8.2
27.8
19.6
2.4
2.1
10.9
11.5
-
-
Federal Bank
Neutral
68
-
11,744
9,353
10,623
2.9
2.9
4.4
5.8
15.5
11.8
1.5
1.3
9.5
11.0
-
-
HDFC
Neutral
1,219
-
192,648
11,475
13,450
3.4
3.4
45.3
52.5
26.9
23.2
5.2
4.6
20.2
20.5
-
-
HDFC Bank
Accumulate
1,196
1,350
302,720
46,097
55,433
4.5
4.5
58.4
68.0
20.5
17.6
3.6
3.0
18.8
18.6
-
-
ICICI Bank
Buy
261
315
151,735
42,800
44,686
3.1
3.3
18.0
21.9
14.5
11.9
2.0
1.8
11.1
12.3
-
-
Lakshmi Vilas Bank
Buy
147
174
2,631
3,339
3,799
2.7
2.8
11.0
14.0
13.3
10.5
1.4
1.3
11.2
12.7
-
-
LIC Housing Finance
Accumulate
566
630
28,544
3,712
4,293
2.6
2.5
39.0
46.0
14.5
12.3
2.7
2.3
19.9
20.1
-
-
Punjab Natl.Bank
Neutral
136
-
28,866
23,532
23,595
2.3
2.4
6.8
12.6
20.0
10.8
3.1
2.2
3.3
6.5
-
-
RBL Bank
Neutral
350
-
12,958
1,783
2,309
2.6
2.6
12.7
16.4
27.6
21.4
3.0
2.7
12.8
13.3
-
-
South Ind.Bank
Neutral
21
-
2,856
6,435
7,578
2.5
2.5
2.7
3.1
7.8
6.8
1.0
0.9
10.1
11.2
-
-
St Bk of India
Neutral
257
-
199,270
88,650
98,335
2.6
2.6
13.5
18.8
19.0
13.7
1.8
1.6
7.0
8.5
-
-
Union Bank
Neutral
145
-
9,934
13,450
14,925
2.3
2.3
25.5
34.5
5.7
4.2
0.8
0.7
7.5
10.2
-
-
Yes Bank
Neutral
1,183
-
49,813
8,978
11,281
3.3
3.4
74.0
90.0
16.0
13.2
3.0
2.6
17.0
17.2
-
-
FMCG
Asian Paints
Neutral
938
-
89,968
17,128
18,978
16.8
16.4
19.1
20.7
49.1
45.3
17.1
16.1
34.8
35.5
5.2
4.7
Britannia
Buy
3,067
3,626
36,800
9,594
11,011
14.6
14.9
80.3
94.0
38.2
32.6
15.7
12.1
41.2
-
3.7
3.2
Colgate
Accumulate
925
995
25,171
4,605
5,149
23.4
23.4
23.8
26.9
38.9
34.4
21.5
16.8
64.8
66.8
5.4
4.8
Dabur India
Accumulate
285
304
50,171
8,315
9,405
19.8
20.7
8.1
9.2
35.2
31.0
9.8
8.1
31.6
31.0
5.7
5.0
GlaxoSmith Con*
Neutral
4,990
-
20,985
4,350
4,823
21.2
21.4
179.2
196.5
27.8
25.4
7.4
6.3
27.1
26.8
4.2
3.7
Godrej Consumer
Neutral
1,473
-
50,147
10,235
11,428
18.4
18.6
41.1
44.2
35.8
33.3
8.0
6.7
24.9
24.8
5.0
4.4
HUL
Neutral
846
-
183,052
35,252
38,495
17.8
17.8
20.7
22.4
41.0
37.8
39.2
33.6
95.6
88.9
5.0
4.6
ITC
Buy
232
284
280,586
40,059
44,439
38.3
39.2
9.0
10.1
25.9
22.9
7.2
6.3
27.8
27.5
6.5
5.9
Marico
Buy
255
300
32,841
6,430
7,349
18.8
19.5
6.4
7.7
39.8
33.1
12.0
10.1
33.2
32.5
4.9
4.3
Nestle*
Neutral
6,249
-
60,249
10,073
11,807
20.7
21.5
124.8
154.2
50.1
40.5
20.6
18.5
34.8
36.7
5.8
4.9
Tata Global
Neutral
124
-
7,804
8,675
9,088
9.8
9.8
7.4
8.2
16.7
15.1
1.9
1.8
7.9
8.1
0.8
0.8
Stock Watch
December 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
FMCG
Procter & Gamble
Accumulate
6,650
7,369
21,586
2,939
3,342
23.2
23.0
146.2
163.7
45.5
40.6
101.8
97.7
25.3
23.5
6.9
6.0
Hygiene
IT
HCL Tech^
Buy
793
1,000
111,809
49,242
57,168
20.5
20.5
55.7
64.1
14.2
12.4
2.9
2.2
20.3
17.9
2.1
1.7
Infosys
Buy
961
1,249
220,828
68,350
77,326
27.0
27.0
62.5
69.4
15.4
13.9
3.3
3.0
21.3
21.6
2.7
2.3
TCS
Buy
2,186
2,620
430,824
119,025
133,308
27.6
27.6
131.2
145.5
16.7
15.0
5.4
5.0
32.4
33.1
3.4
3.0
Tech Mahindra
Buy
462
600
44,876
29,673
32,937
15.5
17.0
32.8
39.9
14.1
11.6
2.8
2.4
19.6
20.7
1.3
1.1
Wipro
Buy
456
590
110,951
55,440
60,430
18.1
18.1
35.9
39.9
12.7
11.4
2.3
2.1
19.0
19.3
1.7
1.6
Media
D B Corp
Neutral
360
-
6,622
2,297
2,590
27.4
28.2
21.0
23.4
17.2
15.4
4.0
3.5
23.7
23.1
2.7
2.3
HT Media
Neutral
71
-
1,660
2,693
2,991
12.6
12.9
7.9
9.0
9.0
7.9
0.8
0.7
7.8
8.3
0.2
0.1
Jagran Prakashan
Buy
172
225
5,623
2,355
2,635
28.0
28.0
10.8
12.5
15.9
13.8
3.5
3.0
21.7
21.7
2.4
2.1
Sun TV Network
Neutral
493
-
19,432
2,850
3,265
70.1
71.0
26.2
30.4
18.8
16.2
4.8
4.3
24.3
25.6
6.4
5.5
Hindustan Media
Neutral
260
-
1,909
1,016
1,138
24.3
25.2
27.3
30.1
9.5
8.6
1.8
1.6
16.2
15.8
1.2
1.0
Ventures
TV Today Network
Buy
294
385
1,753
637
743
27.5
27.5
18.4
21.4
16.0
13.7
2.8
2.4
17.4
17.2
2.4
1.9
Metals & Mining
Coal India
Neutral
306
-
193,154
84,638
94,297
21.4
22.3
24.5
27.1
12.5
11.3
5.2
5.0
42.6
46.0
1.8
1.6
Hind. Zinc
Neutral
275
-
116,386
14,252
18,465
55.9
48.3
15.8
21.5
17.4
12.8
2.8
2.5
17.0
20.7
8.2
6.3
Hindalco
Neutral
174
-
36,024
107,899
112,095
7.4
8.2
9.2
13.0
19.0
13.4
0.9
0.9
4.8
6.6
0.9
0.8
JSW Steel
Neutral
1,650
-
39,876
53,201
58,779
16.1
16.2
130.6
153.7
12.6
10.7
1.7
1.5
14.0
14.4
1.5
1.3
NMDC
Neutral
123
-
38,773
6,643
7,284
44.4
47.7
7.1
7.7
17.3
15.9
1.5
1.5
8.8
9.2
3.6
3.2
SAIL
Neutral
51
-
21,063
47,528
53,738
(0.7)
2.1
(1.9)
2.6
19.6
0.6
0.5
(1.6)
3.9
1.3
1.2
Vedanta
Neutral
227
-
67,180
71,744
81,944
19.2
21.7
13.4
20.1
16.9
11.3
1.5
1.3
8.4
11.3
1.3
1.0
Tata Steel
Neutral
414
-
40,165
121,374
121,856
7.2
8.4
18.6
34.3
22.2
12.1
1.4
1.3
6.1
10.1
1.0
1.0
Oil & Gas
Cairn India
Neutral
251
-
46,965
9,127
10,632
4.3
20.6
8.8
11.7
28.5
21.4
0.9
0.9
3.3
4.2
6.6
5.5
GAIL
Neutral
427
-
54,183
56,220
65,198
9.3
10.1
27.1
33.3
15.8
12.8
1.4
1.3
9.3
10.7
1.2
1.0
ONGC
Neutral
295
-
252,644
137,222
152,563
15.0
21.8
19.5
24.1
15.1
12.3
1.3
1.2
8.5
10.1
2.1
1.9
Indian Oil Corp
Neutral
291
-
141,283
373,359
428,656
5.9
5.5
54.0
59.3
5.4
4.9
0.8
0.8
16.0
15.6
0.5
0.5
Reliance Industries
Neutral
994
-
322,331
301,963
358,039
12.1
12.6
87.7
101.7
11.3
9.8
1.2
1.1
10.7
11.3
1.5
1.3
Pharmaceuticals
Alembic Pharma
Neutral
624
-
11,772
3,483
4,083
20.2
21.4
24.3
30.4
25.7
20.5
5.9
4.7
25.5
25.3
3.3
2.8
Alkem Laboratories Ltd
Buy
1,703
1,989
20,361
6,043
6,893
18.7
19.3
80.5
88.8
21.2
19.2
4.7
3.9
22.3
20.3
3.3
2.9
Aurobindo Pharma
Buy
725
877
42,422
15,720
18,078
23.7
23.7
41.4
47.3
17.5
15.3
4.6
3.6
29.6
26.1
2.9
2.5
Sanofi India*
Neutral
4,271
-
9,837
2,277
2,597
17.3
18.3
149.4
172.0
28.6
24.8
4.7
3.8
25.1
28.8
4.0
3.3
Stock Watch
December 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
Cadila Healthcare
Neutral
398
-
40,694
10,429
12,318
22.6
22.0
16.9
19.2
23.5
20.7
6.0
4.8
28.5
25.7
3.9
3.2
Cipla
Reduce
573
490
46,061
15,378
18,089
17.4
18.4
21.6
27.2
26.5
21.1
3.4
3.0
13.7
15.2
3.2
2.7
Dr Reddy's
Neutral
3,171
-
52,547
16,043
18,119
20.8
22.4
112.4
142.9
28.2
22.2
3.8
3.3
14.1
15.9
3.2
2.9
Dishman Pharma
Neutral
234
-
3,770
1,718
1,890
22.7
22.8
9.5
11.3
24.6
20.7
2.4
2.2
10.1
10.9
2.7
2.3
GSK Pharma*
Neutral
2,772
-
23,476
3,000
3,312
15.4
20.6
46.5
60.8
59.6
45.6
14.3
14.3
26.3
30.6
7.6
6.9
Indoco Remedies
Reduce
258
240
2,374
1,112
1,289
16.2
18.2
11.6
16.0
22.2
16.1
3.6
3.0
17.0
20.1
2.3
1.9
Ipca labs
Accumulate
555
613
7,003
3,303
3,799
15.3
15.3
17.3
19.7
32.1
28.2
2.8
2.6
9.1
9.4
2.2
2.0
Lupin
Buy
1,537
1,809
69,276
15,912
18,644
26.4
26.7
58.1
69.3
26.5
22.2
5.1
4.2
21.4
20.9
4.4
3.6
Sun Pharma
Buy
713
847
171,609
31,129
35,258
32.0
32.9
30.2
35.3
23.6
20.2
3.9
3.2
20.0
20.1
5.1
4.3
Power
Tata Power
Neutral
73
-
19,784
36,916
39,557
17.4
27.1
5.1
6.3
14.3
11.6
1.3
1.2
9.0
10.3
1.5
1.4
NTPC
Neutral
162
-
133,700
86,605
95,545
17.5
20.8
11.8
13.4
13.7
12.1
1.4
1.3
10.5
11.1
2.9
2.9
Power Grid
Buy
185
223
96,758
25,315
29,193
88.2
88.7
14.2
17.2
13.1
10.8
2.0
1.7
15.2
16.1
8.5
7.6
Real Estate
MLIFE
Buy
357
522
1,464
1,152
1,300
22.7
24.6
29.9
35.8
11.9
10.0
0.9
0.8
7.6
8.6
2.0
1.7
Telecom
Bharti Airtel
Neutral
327
-
130,895
105,086
114,808
34.5
34.7
12.2
16.4
26.8
20.0
1.8
1.7
6.8
8.4
2.2
1.9
Idea Cellular
Neutral
73
-
26,178
40,133
43,731
37.2
37.1
6.4
6.5
11.4
11.2
1.0
0.9
8.2
7.6
1.7
1.4
zOthers
Abbott India
Neutral
4,841
-
10,286
3,153
3,583
14.1
14.4
152.2
182.7
31.8
26.5
156.2
133.4
25.6
26.1
3.0
2.6
Bajaj Electricals
Buy
219
274
2,209
4,801
5,351
5.7
6.2
10.4
13.7
21.0
16.0
2.6
2.3
12.4
14.5
0.5
0.4
Finolex Cables
Neutral
410
-
6,264
2,883
3,115
12.0
12.1
14.2
18.6
28.9
22.0
15.3
13.4
15.8
14.6
1.9
1.7
Goodyear India*
Neutral
716
-
1,652
1,598
1,704
10.4
10.2
49.4
52.6
14.5
13.6
66.9
58.7
18.2
17.0
0.7
99.9
Hitachi
Neutral
1,385
-
3,766
2,081
2,433
8.8
8.9
33.4
39.9
41.5
34.7
33.5
27.9
22.1
21.4
1.8
1.5
Jyothy Laboratories
Neutral
369
-
6,697
1,440
2,052
11.5
13.0
8.5
10.0
43.4
36.9
10.5
9.7
18.6
19.3
4.9
3.4
Page Industries
Neutral
13,383
-
14,927
2,450
3,124
20.1
17.6
299.0
310.0
44.8
43.2
298.1
227.5
47.1
87.5
6.1
4.8
Relaxo Footwears
Neutral
410
-
4,925
2,085
2,469
9.2
8.2
7.6
8.0
54.3
51.6
21.0
18.0
17.9
18.8
2.5
2.1
Siyaram Silk Mills
Accumulate
1,226
1,605
1,149
1,733
1,948
11.6
11.7
96.6
114.7
12.7
10.7
1.9
1.7
15.3
15.7
0.9
0.8
Styrolution ABS India*
Neutral
576
-
1,013
1,440
1,537
9.2
9.0
40.6
42.6
14.2
13.5
36.2
32.9
12.3
11.6
0.7
0.6
TVS Srichakra
Neutral
3,386
-
2,593
2,304
2,614
13.7
13.8
231.1
266.6
14.7
12.7
380.5
299.6
33.9
29.3
1.1
1.0
HSIL
Neutral
278
-
2,011
2,384
2,515
15.8
16.3
15.3
19.4
18.2
14.3
18.1
15.5
7.8
9.3
1.0
0.9
Kirloskar Engines India
Neutral
320
-
4,628
2,554
2,800
9.9
10.0
10.5
12.1
30.5
26.5
12.8
12.0
10.7
11.7
1.5
1.3
Ltd
M M Forgings
Neutral
413
-
498
546
608
20.4
20.7
41.3
48.7
10.0
8.5
56.5
50.0
16.6
17.0
0.8
0.7
Stock Watch
December 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
Banco Products (India) Neutral
196
-
1,399
1,353
1,471
12.3
12.4
14.5
16.3
13.5
12.0
18.6
16.8
14.5
14.6
1.0
104.3
Competent Automobiles Neutral
165
-
101
1,137
1,256
3.1
2.7
28.0
23.6
5.9
7.0
31.7
28.6
14.3
11.5
0.1
0.1
Nilkamal
Neutral
1,325
-
1,977
1,995
2,165
10.7
10.4
69.8
80.6
19.0
16.4
75.7
65.8
16.6
16.5
1.0
0.9
Visaka Industries
Neutral
193
-
307
1,051
1,138
10.3
10.4
21.0
23.1
9.2
8.3
24.7
23.2
9.0
9.2
0.6
0.5
Transport Corporation of
Neutral
173
-
1,327
2,671
2,911
8.5
8.8
13.9
15.7
12.5
11.1
1.7
1.5
13.7
13.8
0.6
0.6
India
Elecon Engineering
Neutral
53
-
599
1,482
1,660
13.7
14.5
3.9
5.8
13.7
9.2
3.2
3.0
7.8
10.9
0.7
0.6
Surya Roshni
Neutral
199
-
871
3,342
3,625
7.8
7.5
17.3
19.8
11.5
10.1
21.9
17.5
10.5
10.8
0.5
0.5
MT Educare
Neutral
113
-
452
366
417
17.7
18.2
9.4
10.8
12.1
10.5
2.7
2.3
22.2
22.3
1.1
1.0
Radico Khaitan
Buy
119
147
1,584
1,667
1,824
13.0
13.2
6.7
8.2
17.9
14.6
1.6
1.5
9.0
10.2
1.3
1.2
Garware Wall Ropes
Neutral
633
-
1,385
873
938
14.3
14.3
35.2
37.5
18.0
16.9
3.2
2.7
17.5
15.9
1.5
1.4
Wonderla Holidays
Neutral
330
-
1,863
287
355
38.0
40.0
11.3
14.2
29.2
23.2
4.2
3.7
21.4
23.9
6.2
5.0
Linc Pen & Plastics
Neutral
243
-
359
382
420
9.3
9.5
13.5
15.7
18.0
15.4
3.1
2.7
17.1
17.3
1.0
0.9
The Byke Hospitality
Neutral
162
-
651
287
384
20.5
20.5
7.6
10.7
21.4
15.2
4.5
3.6
20.7
23.5
2.3
1.7
Interglobe Aviation
Neutral
850
-
30,618
21,122
26,005
14.5
27.6
110.7
132.1
7.7
6.4
45.9
32.8
168.5
201.1
1.4
1.1
Coffee Day Enterprises
Neutral
203
-
4,182
2,964
3,260
20.5
21.2
4.7
8.0
-
25.4
2.4
2.2
5.5
8.5
1.8
1.6
Ltd
Navneet Education
Neutral
109
-
2,585
1,062
1,147
24.0
24.0
6.1
6.6
17.8
16.4
3.7
3.2
20.6
19.8
2.5
2.3
Navkar Corporation
Buy
175
265
2,499
369
561
42.9
42.3
7.2
11.5
24.3
15.2
1.8
1.6
7.4
10.5
7.8
5.1
UFO Moviez
Neutral
433
-
1,195
619
685
33.2
33.4
30.0
34.9
14.5
12.4
2.0
1.7
13.8
13.9
1.6
1.3
VRL Logistics
Neutral
265
-
2,420
1,902
2,119
16.7
16.6
14.6
16.8
18.2
15.8
4.0
3.5
21.9
22.2
1.4
1.2
Team Lease Serv.
Neutral
834
-
1,426
3,229
4,001
1.5
1.8
22.8
32.8
36.6
25.4
3.9
3.4
10.7
13.4
0.3
0.3
S H Kelkar & Co.
Neutral
300
-
4,339
1,036
1,160
15.1
15.0
6.1
7.2
49.1
41.8
5.3
4.8
10.7
11.5
4.1
3.6
Quick Heal
Neutral
230
-
1,611
408
495
27.3
27.0
7.7
8.8
29.7
26.2
2.8
2.8
9.3
10.6
3.1
2.6
Narayana Hrudaya
Neutral
340
-
6,951
1,873
2,166
11.5
11.7
2.6
4.0
128.6
85.8
7.9
7.1
6.1
8.3
3.8
3.3
Manpasand Bever.
Neutral
617
-
3,528
836
1,087
19.6
19.4
16.9
23.8
36.5
25.9
4.4
3.8
12.0
14.8
4.0
3.0
Parag Milk Foods
Neutral
269
-
2,264
1,919
2,231
9.3
9.6
9.5
12.9
28.5
20.8
4.4
3.7
15.5
17.5
1.3
1.1
Mirza International
Buy
80
107
960
987
1,106
18.0
18.0
6.5
7.6
12.2
10.5
2.0
1.7
15.9
15.7
1.2
1.0
Asian Granito
Buy
211
351
633
1,071
1,182
12.1
12.4
12.7
16.0
16.5
13.2
1.6
1.4
9.5
10.7
0.9
0.8
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on December 05, 2016
Market Outlook
December 06, 2016
Research Team Tel: 022 - 39357800
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