Market Outlook

September 7, 2016

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian markets continued to witness strong momentum and the trend don’t seem to

BSE Sensex

1.6

446

28,978

be changing in a hurry. It is expected to open on a positive bias.

Nifty

1.5

133

8,943

The US markets closed modestly higher, on the back of service sector data. The

Mid Cap

1.8

243

13,474

Institute for supply Management showed that services sector growth slowed to its

Small Cap

1.0

120

12,764

lowest rates over six years. As a result markets were directionless initially and settled

Bankex

3.0

676

23,480

mildly positive during the day.

The European markets remained directionless for the large part of the day and

Global Indices

Chg (%)

(Pts)

(Close)

ended lower on Tuesday. The European Central Bank’s September meet which is

Dow Jones

0.3

18,538

due on Thursday, also kept investors away and traders kept their positions light.

Nasdaq

0.5

5,276

Indian markets opened positive on Tuesday and gained momentum during the day

FTSE

(0.8)

(53)

6,826

and ended on a strong note for the day. Banks and Financial services and Auto

stocks were in limelight during the day. Among Pvt Banks Yes Bank hit new highs

Nikkei

0.3

17,082

and within the auto space the Maruti was strong gainer reaching all-time high.

Hang Seng

0.6

138

23,788

Shanghai Com

0.6

3,091

News Analysis

 Reliance Capital raises `2,000cr through debentures

Detailed analysis on Pg2

Advances / Declines

BSE

NSE

Advances

1,629

1029

Investor’s Ready Reckoner

Declines

1,153

582

Key Domestic & Global Indicators

Unchanged

192

Stock Watch: Latest investment recommendations on 150+ stocks

Refer Pg6 onwards

Volumes (` Cr)

Top Picks

BSE

3,805

CMP

Target

Upside

Company

Sector

Rating

NSE

20,693

(`)

(%)

HCL Tech

Buy

785

1,000

27.4

Bharat Electronics

Capital Goods

Buy

1,213

1,414

16.5

Net Inflows (` Cr)

Net

Mtd

Ytd

Equitas Holdings

Financials

Buy

182

235

29.5

FII

1438

8,474

39,356

Navkar Corporation Others

Buy

193

265

37.5

MFs

(268)

1,320

10,109

More Top Picks on Pg4

Key Upcoming Events

Top Gainers

Price (`)

Chg (%)

Consensus

Date

Region

Event Description

Prestige

202

8.2

Reading

Expectations

Sep 07 UK

Industrial Production YoY

1.60

1.90

Redington

115

7.2

Sep 08 China

Exports YoY%

(4.40)

(4.00)

Tatamotors

589

7.2

Sep 08 US

Initial Jobless Claims

263.00

264.50

Indianb

235

7.0

Sep 08 Euro

ECB announces Interest Rates

Trent

2,394

6.8

Sep 09 UK

CPI (YoY)

0.60

6.(

More Events on Pg5

Top Losers

Price (`)

Chg (%)

Jublfood

1,068

(9.5)

Mindtree

522

(5.1)

Den

(3.6)

Network18

(2.5)

Hcc

(2.4)

As on September 06, 2016

www.angelbroking.com

Market Outlook

September 7, 2016

News Analysis

Reliance Capital Raises `2,000cr through debentures

Reliance Capital has raised `2,000cr through debentures and the company will

use the proceeds to refinance debt and growing its lending business. The five year

debentures carry an annual coupon rate of 8.9%, while the 10 year paper carries

9% rates. So far in the current financial year Reliance Capital has raised

~`3,000cr, softening in interest rates has enabled lot of NBFCs raising funds via

money market instruments. The company has been focusing on the NBFC space

and the lending business also seems to be picking up. It had an AUM of

`69,356cr.

Economic and Political News

 Delhi International Airport plans to raise `3,000cr via masala bond

 Govt signs agreement to widen trade pact with Chile

 Two global firms keen to make maglev trains for India

Corporate News

 Ahluwali contracts bags order worth `244cr

 Oil India’s Q1FY17 Net profit drops 34%

 Jindal steel to supply head-hardened rail for high speed metros

 Vedanta share holders approve merger with CAIRN

 Sun Pharma partners Mitsubishi Tanabe to sell 14 prescriptions brands in

Jpan.

Quarterly Bloomberg Brokers Consensus Estimate

Bharat Heavy Electricals Ltd-Sept 7, 2016

Particulars (` cr)

1QFY17E

1QFY16

y-o-y (%)

4QFY16 q-o-q (%)

Net sales

4,597

4,281

7.4

9,792

(53.1)

EBITDA

(198)

(209)

0.0

364

0.0

EBITDA margin (%)

(4.3)

(4.9)

3.7

Net profit

(90)

0.0

360

0.0

Oil & Natural Gas Corp Ltd-Sept 7, 2016

Particulars (` cr)

1QFY17E

1QFY16

y-o-y (%)

4QFY16 q-o-q (%)

Net sales

18,333

22,696

(19.2)

16,140

13.6

EBITDA

8,476

10,583

(19.9)

4,489

88.8

EBITDA margin (%)

46.2

46.6

27.8

Net profit

3,646

5,460

(33.2)

4,416

(17.4)

www.angelbroking.com

Market Outlook

September 7, 2016

GAIL India Ltd-Sept 7, 2016

Particulars (` cr)

1QFY17E

1QFY16

y-o-y (%)

4QFY16

q-o-q (%)

Net sales

12,064

12,519

(3.6)

11,627

3.8

EBITDA

1,475

1,044

41.3

1,224

20.5

EBITDA margin (%)

12.2

8.3

10.5

Net profit

795

424

87.4

770

3.2

Jindal Steel & Power Ltd Consol -Sept 8, 2016

Particulars (` cr)

1QFY17E

1QFY16

y-o-y (%)

4QFY16

q-o-q (%)

Net sales

4,939

4,389

12.5

4,743

4.1

EBITDA

936

952

(1.7)

689

35.8

EBITDA margin (%)

18.9

21.7

14.5

Net profit

(556)

(339)

0.0

(371)

0.0

Steel Authority of India Ltd-Sept 8, 2016

Particulars (` cr)

1QFY17E

1QFY16

y-o-y (%)

4QFY16

q-o-q (%)

Net sales

9,388

9,384

0.0

11,212

(16.3)

EBITDA

(310)

(82)

0.0

(1,124)

0.0

EBITDA margin (%)

(3.3)

(0.9)

(10)

Net profit

(1,163)

(322)

0.0

(1,231)

0.0

Coal India Ltd Consol -Sept 9, 2016

Particulars (` cr)

1QFY17E

1QFY16

y-o-y (%)

4QFY16

q-o-q (%)

Net sales

18,963

18,956

0.0

20,759

(8.7)

EBITDA

4,881

4,944

(1.3)

5,534

(11.8)

EBITDA margin (%)

25.7

26.1

26.7

Net profit

3,628

3,764

(3.6)

4,248

(14.6)

www.angelbroking.com

Market Outlook

September 7, 2016

Top Picks ★★★★★

Large Cap

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

Uptick in defense capex by government, coupled with BELs

Bharat Electronics

29,118

1,213

1,414

16.5

strong market positioning, indicate good times ahead for BEL.

HCL Tech

1,10,766

785

1,000

27.4

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

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

Infosys

2,40,054

1,045

1,370

31.1

be a US$20bn in FY2020.

Source: Company, AngelResearch

Mid Cap

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

Strong loan growth backed by diversified loan portfolio and

Equitas Holdings

6,087

182

235

29.5

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

1,372

595

631

6.1

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

2,497

22.5

cycle, to lead to stock re-rating

Speedier execution and speedier sales, strong revenue visibility

Mahindra Lifespace

1,767

431

522

21.2

in short-to-long run, attractive valuations

Massive capacity expansion along with rail advantage at ICD as

Navkar Corporation

2,749

193

265

37.5

well CFS augurs well for the company

Earnings boost on back of stable material prices and favourable

Radico Khaitan

1,365

103

125

21.8

pricing environment. Valuation discount to peers provides

additional comfort

Market leadership in Hindi news genre and no. 2 viewership

TV Today Network

1,820

305

363

19.0

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

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

Source: Company, AngelResearch

www.angelbroking.com

Market Outlook

September 7, 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

Sep 10, 2016 Siyaram Silk Mills

Source: Bloomberg, Angel Research

Global economic events release calendar

Bloomberg Data

Date

Time

Country Event Description

Unit

Period

Last Reported Estimated

Sep 07, 2016

2:00 PM

Industrial Production (YoY)

% Change Jul

1.60

1.90

Sep 08, 2016

China

Exports YoY%

% Change Aug

(4.40)

(4.00)

6:00 PM

Initial Jobless claims

Thousands Sep 3

263.00

264.50

5:15 PM Euro Zone

ECB announces interest rates

% Sep 8

Sep 09, 2016

2:00 PM

CPI (YoY)

% Change Aug

0.60

Sep 12, 2016

7:00 AM

China

Consumer Price Index (YoY)

% Change Aug

1.80

1.70

Sep 13, 2016

5:30 PM

India

Industrial Production YoY

% Change Jul

2.10

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

Sep 15, 2016

India

Imports YoY%

% Change Aug

(19.03)

India

Exports YoY%

% Change Aug

(6.84)

2:30 PM Euro Zone

Euro-Zone CPI (YoY)

% Aug F

0.20

6:45 PM

Industrial Production

% Aug

0.74

(0.20)

Producer Price Index (mom)

% Change Aug

(0.50)

4:30 PM

BOE Announces rates

% Ratio Sep 15

0.25

Sep 16, 2016

6:00 PM

Housing Starts

Thousands Aug

######

Sep 20, 2016

6:00 PM

US Consumer price index (mom)

% Change Aug

0.10

Source: Bloomberg, Angel Research

www.angelbroking.com

Stock Watch

September 07, 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

4,390

1,937

2,164

13.3

14.3

9.0

11.0

25.1

20.5

4.4

3.8

18.4

19.8

2.3

2.0

United Phosphorus

Accumulate

645

684

27,658

15,176

17,604

18.5

37.4

44.6

17.3

14.5

3.4

2.8

21.4

21.2

1.9

1.6

Auto & Auto Ancillary

Ashok Leyland

Buy

111

24,403

22,407

26,022

10.6

5.2

6.4

16.4

13.4

3.7

3.1

23.6

24.7

1.2

1.0

Bajaj Auto

Neutral

3,007

87,003

25,093

27,891

19.5

19.2

143.9

162.5

20.9

18.5

5.9

5.0

30.3

29.4

3.2

2.8

Bharat Forge

Neutral

872

20,288

7,726

8,713

20.5

21.2

35.3

42.7

24.7

20.4

4.6

4.1

18.9

20.1

2.7

2.3

Eicher Motors

Neutral

22,948

62,330

16,583

20,447

17.5

18.0

598.0

745.2

38.4

30.8

13.1

10.0

41.2

38.3

3.6

2.9

Gabriel India

Neutral

118

1,694

1,544

1,715

9.0

9.3

5.4

6.3

21.8

18.7

4.1

3.7

18.9

19.5

1.0

0.9

Hero Motocorp

Neutral

3,614

72,168

31,253

35,198

15.3

15.0

172.3

192.1

21.0

18.8

7.7

6.6

38.9

37.0

2.1

1.8

Jamna Auto Industries Neutral

219

1,746

1,486

1,620

9.8

9.9

15.0

17.2

14.6

12.7

3.2

2.7

21.8

21.3

1.3

1.2

L G Balakrishnan & Bros Neutral

486

763

1,302

1,432

11.6

11.9

43.7

53.0

11.1

9.2

1.6

1.4

13.8

14.2

0.7

0.6

Mahindra and Mahindra Neutral

1,490

92,537

46,534

53,077

11.6

11.7

67.3

78.1

22.1

19.1

3.6

3.1

15.4

15.8

1.9

1.6

Maruti

Neutral

5,308

160,338

69,186

82,217

14.7

14.4

198.5

241.4

26.7

22.0

5.2

4.2

20.2

20.0

1.9

1.5

Minda Industries

Neutral

1,461

2,318

2,728

3,042

9.0

9.1

68.2

86.2

21.4

17.0

4.9

3.9

23.8

24.3

0.8

0.7

Motherson Sumi

Neutral

324

42,824

45,896

53,687

7.8

8.3

13.0

16.1

24.8

20.1

8.0

6.4

34.7

35.4

1.0

0.8

Rane Brake Lining

Neutral

936

741

511

562

11.3

11.5

28.1

30.9

33.3

30.3

5.1

4.6

15.3

15.0

1.3

1.2

Setco Automotive

Neutral

599

741

837

13.0

15.2

17.0

3.0

2.6

0.5

0.4

15.8

16.3

1.2

1.1

Tata Motors

Neutral

589

170,157

300,209

338,549

8.9

8.4

42.7

54.3

13.8

10.9

2.2

1.9

15.6

17.2

0.6

0.5

TVS Motor

Neutral

333

15,820

13,390

15,948

6.9

7.1

12.8

16.5

26.1

20.1

6.5

5.1

26.3

27.2

1.2

1.0

Amara Raja Batteries

Buy

1,035

1,076

17,682

5,717

6,733

18.7

18.9

38.4

48.9

27.0

21.2

6.7

5.5

25.3

24.8

2.6

2.2

Exide Industries

Neutral

190

16,112

7,439

8,307

15.0

8.1

9.3

23.4

20.4

3.3

2.9

14.3

16.7

1.7

1.5

Apollo Tyres

Neutral

202

10,305

12,877

14,504

14.3

13.9

21.4

23.0

9.5

8.8

1.5

1.3

16.4

15.2

0.9

0.8

Ceat

Buy

970

1,119

3,923

7,524

8,624

13.0

12.7

131.1

144.3

7.4

6.7

1.4

1.2

19.8

18.6

0.6

0.5

JK Tyres

Neutral

147

3,341

7,455

8,056

15.0

21.8

24.5

6.8

6.0

1.4

1.2

22.8

21.3

0.5

0.4

Swaraj Engines

Neutral

1,172

1,456

660

810

15.2

16.4

54.5

72.8

21.5

16.1

6.7

6.1

31.5

39.2

2.0

1.6

Subros

Neutral

106

637

1,488

1,681

11.7

11.9

6.4

7.2

16.6

14.8

1.8

1.6

10.8

11.4

0.6

0.5

Indag Rubber

Neutral

186

489

286

326

19.8

16.8

11.7

13.3

16.0

14.0

2.7

2.5

17.8

17.1

1.4

1.2

Capital Goods

ACE

Neutral

444

709

814

4.1

4.6

1.4

2.1

32.0

21.4

1.3

4.4

6.0

0.8

0.7

BEML

Accumulate

1,067

1,157

4,443

3,451

4,055

6.3

9.2

31.4

57.9

34.0

18.4

2.0

1.9

6.3

10.9

1.4

1.2

Bharat Electronics

Buy

1,213

1,414

29,118

8,137

9,169

16.8

17.2

58.7

62.5

20.7

19.4

3.2

2.9

44.6

46.3

2.6

2.3

www.angelbroking.com

Stock Watch

September 07, 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

392

12,974

6,511

7,514

7.9

8.7

12.9

16.3

30.4

24.1

5.5

4.8

16.7

18.5

1.8

1.5

BGR Energy

Neutral

113

817

16,567

33,848

6.0

5.6

7.8

5.9

14.5

19.2

0.8

4.7

4.2

0.2

0.1

BHEL

Neutral

138

33,863

28,797

34,742

2.8

2.3

6.9

60.2

20.1

1.0

1.3

4.8

0.9

0.6

Blue Star

Accumulate

509

527

4,852

4,351

5,024

6.4

7.1

17.2

20.6

29.6

24.7

19.3

16.1

23.1

24.1

1.1

1.0

Crompton Greaves

Neutral

5,171

5,777

6,120

5.9

7.0

3.3

4.5

25.0

18.3

1.1

4.4

5.9

0.8

0.7

Greaves Cotton

Neutral

135

3,300

1,755

1,881

16.8

16.9

7.8

8.5

17.3

15.9

3.5

3.2

20.6

20.9

1.6

1.5

Inox Wind

Buy

180

286

4,005

5,605

6,267

15.7

16.4

24.8

30.0

7.3

6.0

2.0

1.5

25.9

24.4

0.8

0.6

KEC International

Neutral

137

3,513

9,294

10,186

7.9

8.1

9.9

11.9

13.8

11.5

2.0

1.8

15.6

16.3

0.6

Thermax

Neutral

827

9,851

5,421

5,940

7.3

25.7

30.2

32.2

27.4

3.9

3.6

12.2

13.1

1.7

1.6

VATech Wabag

Buy

567

681

3,091

3,136

3,845

8.9

9.1

26.0

35.9

21.8

15.8

2.7

2.3

13.4

15.9

0.9

0.7

Cement

ACC

Neutral

1,699

31,901

11,225

13,172

13.2

16.9

44.5

75.5

38.2

22.5

3.6

3.3

11.2

14.2

2.8

2.4

Ambuja Cements

Neutral

277

55,012

9,350

10,979

18.2

22.5

5.8

9.5

47.8

29.2

4.0

3.6

10.2

12.5

5.8

5.0

India Cements

Neutral

156

4,783

4,364

4,997

18.5

19.2

7.9

11.3

19.7

13.8

1.4

8.0

8.5

1.8

1.6

JK Cement

Neutral

793

5,545

4,398

5,173

15.5

17.5

31.2

55.5

25.4

14.3

3.1

2.6

12.0

15.5

1.8

1.5

J K Lakshmi Cement

Neutral

462

5,430

2,913

3,412

14.5

19.5

7.5

22.5

61.5

20.5

3.8

3.2

12.5

18.0

2.4

2.0

Orient Cement

Neutral

200

4,096

2,114

2,558

18.5

20.5

8.1

11.3

24.7

17.7

3.6

3.1

9.0

14.0

2.4

1.9

UltraTech Cement

Neutral

4,075

111,832

25,768

30,385

21.0

23.5

111.0

160.0

36.7

25.5

4.7

4.1

13.5

15.8

4.2

3.5

Construction

ITNL

Buy

2,497

8,946

10,017

31.0

31.6

8.1

9.1

9.4

8.3

0.4

4.2

5.0

3.6

3.3

KNR Constructions

Accumulate

700

802

1,968

1,385

1,673

14.7

14.0

41.2

48.5

17.0

14.4

3.2

2.7

14.9

15.2

1.5

1.2

Larsen & Toubro

Buy

1,516

1,700

141,283

67,665

77,249

10.7

11.5

57.3

71.2

26.5

21.3

2.4

2.3

12.6

14.3

2.2

1.9

Gujarat Pipavav Port

Neutral

186

8,999

705

788

52.2

51.7

5.0

5.6

37.2

33.2

3.7

3.3

11.2

11.9

10.1

Nagarjuna Const.

Neutral

4,912

8,842

9,775

9.1

8.8

5.3

6.4

16.7

13.8

1.3

1.2

8.2

9.1

0.7

0.6

PNC Infratech

Accumulate

122

129

3,135

2,350

2,904

13.4

13.7

48.0

42.0

2.6

2.9

0.5

0.4

16.8

13.2

1.4

1.2

Simplex Infra

Neutral

344

1,703

6,829

7,954

10.5

31.4

37.4

11.0

9.2

1.1

1.0

9.9

13.4

0.6

0.5

Power Mech Projects

Neutral

477

701

1,801

2,219

12.7

14.6

72.1

113.9

6.6

4.2

1.2

1.0

16.8

11.9

0.4

0.3

Sadbhav Engineering

Neutral

295

5,059

3,598

4,140

10.3

10.6

9.0

11.9

32.8

24.8

3.4

3.0

9.9

11.9

1.7

1.4

NBCC

Neutral

248

14,853

7,428

9,549

7.9

8.6

8.2

11.0

30.2

22.5

1.5

1.2

28.2

28.7

1.7

1.2

MEP Infra

Neutral

717

1,877

1,943

30.6

29.8

3.0

4.2

14.7

10.5

7.1

4.8

0.6

1.8

1.6

SIPL

Neutral

105

3,698

1,036

1,252

65.5

66.2

(8.4)

(5.6)

3.9

4.5

(22.8)

(15.9)

11.5

9.6

www.angelbroking.com

Stock Watch

September 07, 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

269

9,072

1,725

1,935

16.0

19.1

11.4

13.9

23.6

19.4

3.3

3.2

13.4

15.3

4.1

3.7

Financials

Axis Bank

Neutral

636

151,786

58,081

66,459

3.5

32.4

44.6

19.7

14.3

2.6

2.2

13.6

16.5

Bank of Baroda

Neutral

169

39,044

19,980

23,178

1.8

11.5

17.3

14.7

9.8

1.7

1.4

8.3

10.1

Canara Bank

Neutral

287

15,595

15,225

16,836

1.8

14.5

28.0

19.8

10.3

1.4

1.1

5.8

8.5

Dewan Housing Finance Neutral

295

8,615

2,225

2,688

2.9

29.7

34.6

9.9

8.5

1.6

1.4

16.1

16.8

Equitas Holdings

Buy

182

235

6,087

939

1,281

11.7

11.5

5.8

8.2

31.3

22.1

2.7

2.4

10.9

11.5

Federal Bank

Neutral

12,328

9,353

10,623

2.9

4.4

5.8

16.3

12.4

1.6

1.4

9.5

11.0

HDFC

Neutral

1,455

230,015

11,475

13,450

3.4

45.3

52.5

32.1

27.7

6.2

5.5

20.2

20.5

HDFC Bank

Accumulate

1,299

1,350

328,886

46,097

55,433

4.5

58.4

68.0

22.2

19.1

3.9

3.3

18.8

18.6

ICICI Bank

Neutral

272

158,482

39,029

45,903

3.3

16.7

16.3

16.7

2.0

1.8

10.1

12.4

LIC Housing Finance

Neutral

593

29,909

3,712

4,293

2.6

2.5

39.0

46.0

15.2

12.9

2.9

2.4

19.9

20.1

Punjab Natl.Bank

Neutral

133

26,057

23,532

23,595

2.3

2.4

6.8

12.6

19.5

10.5

3.0

2.1

3.3

6.5

South Ind.Bank

Neutral

3,092

6,435

7,578

2.5

2.7

3.1

8.5

7.4

1.1

0.9

10.1

11.2

St Bk of India

Neutral

259

201,405

88,650

98,335

2.6

13.5

18.8

19.2

13.8

1.8

1.6

7.0

8.5

Union Bank

Neutral

146

10,013

13,450

14,925

2.3

25.5

34.5

5.7

4.2

0.8

0.7

7.5

10.2

Yes Bank

Neutral

1,441

60,662

8,978

11,281

3.3

3.4

74.0

90.0

19.5

16.0

3.7

3.1

17.0

17.2

FMCG

Asian Paints

Neutral

1,201

115,171

17,128

18,978

16.8

16.4

19.1

20.7

62.9

58.0

21.9

20.6

34.8

35.5

6.3

5.7

Britannia

Neutral

3,458

41,483

9,795

11,040

14.6

14.9

80.3

94.0

43.1

36.8

17.7

13.7

41.2

4.1

3.6

Colgate

Neutral

976

26,538

4,605

5,149

23.4

23.8

26.9

41.0

36.3

22.7

17.7

64.8

66.8

5.5

4.9

Dabur India

Neutral

300

52,721

8,315

9,405

19.8

20.7

8.1

9.2

37.0

32.6

10.3

8.5

31.6

31.0

5.9

5.2

GlaxoSmith Con*

Neutral

6,261

26,329

4,350

4,823

21.2

21.4

179.2

196.5

34.9

31.9

9.3

7.9

27.1

26.8

5.5

4.8

Godrej Consumer

Neutral

1,621

55,184

10,235

11,428

18.4

18.6

41.1

44.2

39.4

36.7

8.8

7.4

24.9

24.8

5.3

4.7

HUL

Neutral

937

202,779

35,252

38,495

17.6

17.4

20.4

21.9

45.9

42.8

37.7

33.1

82.2

77.3

5.5

5.0

ITC

Accumulate

262

283

316,678

40,059

44,439

39.0

39.2

9.1

10.1

28.9

26.0

7.9

6.9

27.2

26.5

7.2

6.5

Marico

Neutral

299

38,550

6,430

7,349

18.8

19.5

6.4

7.7

46.7

38.8

14.1

11.9

33.2

32.5

5.6

4.8

Nestle*

Neutral

6,569

63,338

10,073

11,807

20.7

21.5

124.8

154.2

52.6

42.6

21.6

19.4

34.8

36.7

6.2

5.3

Tata Global

Neutral

142

8,946

8,675

9,088

9.8

7.4

8.2

19.2

17.3

2.2

2.1

7.9

8.1

0.9

Procter & Gamble

Accumulate

6,600

7,369

21,426

2,939

3,342

23.2

23.0

146.2

163.7

45.2

40.3

101.1

96.9

25.3

23.5

6.8

5.9

Hygiene

HCL Tech^

Buy

785

1,000

110,766

49,242

57,168

20.5

55.7

64.1

14.1

12.3

2.9

2.2

20.3

17.9

2.1

1.7

www.angelbroking.com

Stock Watch

September 07, 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

1,045

1,370

240,054

69,934

79,025

27.5

64.8

72.0

16.1

14.5

3.6

3.2

22.0

22.3

2.9

2.5

TCS

Buy

2,484

3,004

489,464

121,684

136,286

27.3

135.0

150.1

18.4

16.6

6.1

5.6

33.2

33.9

3.9

3.4

Tech Mahindra

Buy

480

700

46,608

30,347

33,685

17.0

37.5

41.3

12.8

11.6

2.8

2.4

21.8

20.7

1.2

1.0

Wipro

Buy

483

680

117,356

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

410

7,542

2,297

2,590

27.4

28.2

21.0

23.4

19.6

17.5

4.6

4.0

23.7

23.1

3.1

2.7

HT Media

Neutral

2,028

2,693

2,991

12.6

12.9

7.9

9.0

11.0

9.7

0.9

7.8

8.3

0.3

0.2

Jagran Prakashan

Accumulate

195

205

6,376

2,355

2,635

28.0

9.9

10.8

19.7

18.1

3.9

3.4

21.7

2.6

2.3

Sun TV Network

Neutral

480

18,914

2,850

3,265

70.1

71.0

26.2

30.4

18.3

15.8

4.7

4.1

24.3

25.6

6.2

5.2

Hindustan Media

Neutral

280

2,054

1,016

1,138

24.3

25.2

27.3

30.1

10.3

9.3

2.0

1.7

16.2

15.8

1.4

1.2

Ventures

TV Today Network

Buy

305

363

1,820

637

743

27.5

18.4

21.4

16.6

14.3

2.9

2.5

17.4

17.2

2.5

2.0

Metals & Mining

Coal India

Neutral

329

207,682

84,638

94,297

21.4

22.3

24.5

27.1

13.4

12.1

5.6

5.3

42.6

46.0

2.0

1.8

Hind. Zinc

Neutral

230

97,203

14,252

18,465

55.9

48.3

15.8

21.5

14.6

10.7

2.4

2.1

17.0

20.7

6.8

5.2

Hindalco

Neutral

159

32,730

107,899

112,095

7.4

8.2

9.2

13.0

17.2

12.2

0.8

4.8

6.6

0.8

JSW Steel

Neutral

1,863

45,032

53,201

58,779

16.1

16.2

130.6

153.7

14.3

12.1

1.9

1.7

14.0

14.4

1.6

1.4

NMDC

Neutral

107

42,422

6,643

7,284

44.4

47.7

7.1

7.7

15.1

13.9

1.3

8.8

9.2

4.2

3.8

SAIL

Neutral

20,072

47,528

53,738

(0.7)

2.1

(1.9)

2.6

18.7

0.5

(1.6)

3.9

1.3

1.2

Vedanta

Neutral

175

51,764

71,744

81,944

19.2

21.7

13.4

20.1

13.0

8.7

1.1

1.0

8.4

11.3

1.1

0.8

Tata Steel

Neutral

386

37,474

121,374

121,856

7.2

8.4

18.6

34.3

20.7

11.3

1.3

1.2

6.1

10.1

0.9

Oil & Gas

Cairn India

Neutral

203

38,069

9,127

10,632

4.3

20.6

8.8

11.7

23.1

17.4

0.7

3.3

4.2

5.7

4.7

GAIL

Neutral

402

51,044

56,220

65,198

9.3

10.1

27.1

33.3

14.9

12.1

1.4

1.3

9.3

10.7

1.1

0.9

ONGC

Neutral

239

204,562

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

139,170

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

1,020

330,875

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

627

11,823

3,483

4,083

20.2

21.4

24.3

30.4

25.8

20.6

5.9

4.7

25.5

25.3

3.4

2.8

Aurobindo Pharma

Accumulate

778

877

45,547

15,720

18,078

23.7

41.4

47.3

18.8

16.5

4.9

3.8

29.6

26.1

3.2

2.8

Aventis*

Neutral

4,490

10,341

2,357

2,692

17.3

153.5

169.2

29.3

26.5

5.0

4.0

25.8

28.4

3.9

3.2

Cadila Healthcare

Neutral

384

39,276

11,126

13,148

22.0

17.1

20.0

22.4

19.2

5.8

4.6

28.8

26.6

3.6

2.9

Cipla

Sell

578

490

46,458

15,378

18,089

17.4

18.4

21.6

27.2

26.8

21.3

3.5

3.0

13.7

15.2

3.2

2.7

Dr Reddy's

Neutral

3,128

51,823

16,043

18,119

23.1

24.7

126.0

157.8

24.8

19.8

3.7

3.2

15.7

17.1

3.2

2.8

www.angelbroking.com

Stock Watch

September 07, 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

2,815

1,718

1,890

22.7

22.8

9.5

11.3

18.4

15.4

1.8

1.6

10.1

10.9

2.2

1.9

GSK Pharma*

Neutral

3,001

25,423

3,528

3,811

16.6

18.8

51.8

59.4

57.9

50.5

15.5

15.4

26.3

30.6

7.0

6.5

Indoco Remedies

Sell

321

225

2,961

1,112

1,289

18.2

13.2

15.6

24.3

20.6

4.3

3.7

19.2

2.8

2.4

Ipca labs

Accumulate

573

613

7,228

3,303

3,799

15.3

17.3

19.7

33.1

29.1

2.9

2.6

9.1

9.4

2.2

1.9

Lupin

Buy

1,536

1,809

69,226

15,912

18,644

26.4

26.7

58.1

69.3

26.4

22.2

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

4.7

Power

Tata Power

Neutral

21,231

36,916

39,557

17.4

27.1

5.1

6.3

15.4

12.5

1.4

1.2

9.0

10.3

1.6

1.4

NTPC

Neutral

164

134,813

86,605

95,545

17.5

20.8

11.8

13.4

13.9

12.2

1.4

1.3

10.5

11.1

2.9

Power Grid

Neutral

187

97,648

25,763

29,762

74.3

73.1

14.8

17.3

12.6

10.8

2.0

1.7

16.9

17.5

8.0

7.6

Real Estate

Prestige Estate

Buy

202

210

7,583

4,707

5,105

25.2

26.0

10.3

13.0

19.6

15.6

1.6

1.5

10.3

10.2

2.6

2.3

MLIFE

Buy

431

522

1,767

1,152

1,300

22.7

24.6

29.9

35.8

14.4

12.0

1.1

1.0

7.6

8.6

2.3

1.9

Telecom

Bharti Airtel

Neutral

322

128,576

105,086

114,808

34.5

34.7

12.2

16.4

26.4

19.6

1.8

1.7

6.8

8.4

2.2

1.9

Idea Cellular

Neutral

30,499

40,133

43,731

37.2

37.1

6.4

6.5

13.2

13.0

1.1

1.0

8.2

7.6

1.9

1.6

zOthers

Abbott India

Neutral

4,599

9,772

3,153

3,583

14.1

14.4

152.2

182.7

30.2

25.2

148.4

126.7

25.6

26.1

2.9

2.5

Bajaj Electricals

Neutral

272

2,745

5,099

5,805

5.7

5.9

11.4

14.6

23.9

18.6

3.2

2.8

13.4

15.1

0.5

Finolex Cables

Neutral

425

6,507

2,883

3,115

12.0

12.1

14.2

18.6

30.0

22.9

15.9

13.9

15.8

14.6

2.0

1.8

Goodyear India*

Accumulate

595

631

1,372

1,598

1,704

10.4

10.2

49.4

52.6

12.0

11.3

55.6

48.8

18.2

17.0

0.5

64.3

Hitachi

Neutral

1,495

4,064

2,081

2,433

8.8

8.9

33.4

39.9

44.8

37.5

36.1

30.1

22.1

21.4

2.0

1.7

Jyothy Laboratories

Neutral

318

5,756

1,440

2,052

11.5

13.0

8.5

10.0

37.4

31.8

9.1

8.4

18.6

19.3

4.2

2.9

Page Industries

Neutral

15,259

17,019

2,450

3,124

20.1

17.6

299.0

310.0

51.0

49.2

339.8

259.4

47.1

87.5

6.8

5.4

Relaxo Footwears

Neutral

439

5,269

2,085

2,469

9.2

8.2

7.6

8.0

58.1

55.2

22.5

19.2

17.9

18.8

2.7

2.3

Siyaram Silk Mills

Neutral

1,308

1,226

1,799

2,040

11.6

11.7

104.9

122.4

12.5

10.7

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

2,674

2,932

2,048

2,304

2,614

13.7

13.8

231.1

266.6

11.6

10.0

300.5

236.6

33.9

29.3

0.9

0.7

HSIL

Neutral

357

2,582

2,384

2,515

15.8

16.3

15.3

19.4

23.4

18.4

23.2

20.0

7.8

9.3

1.2

1.1

Kirloskar Engines India

Neutral

283

4,098

2,554

2,800

9.9

10.0

10.5

12.1

27.0

23.4

11.3

10.7

11.7

1.2

1.1

Ltd

M M Forgings

Neutral

434

524

546

608

20.4

20.7

41.3

48.7

10.5

8.9

59.5

52.6

16.6

17.0

0.8

0.7

Banco Products (India)

Neutral

232

1,662

1,353

1,471

12.3

12.4

14.5

16.3

16.0

14.3

22.1

19.9

14.5

14.6

1.1

115.4

Competent Automobiles Neutral

183

112

1,137

1,256

3.1

2.7

28.0

23.6

6.5

7.7

35.1

31.7

14.3

11.5

0.1

www.angelbroking.com

Stock Watch

September 07, 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

Nilkamal

Neutral

1,282

1,913

1,995

2,165

10.7

10.4

69.8

80.6

18.4

15.9

73.2

63.6

16.6

16.5

0.9

0.8

Visaka Industries

Neutral

201

319

1,051

1,138

10.3

10.4

21.0

23.1

9.6

8.7

25.8

24.1

9.0

9.2

0.5

Transport Corporation of

Neutral

186

1,423

2,671

2,911

8.5

8.8

13.9

15.7

13.4

11.9

1.8

1.6

13.7

13.8

0.6

India

Elecon Engineering

Accumulate

623

1,482

1,660

13.7

14.5

3.9

5.8

14.7

9.9

3.5

3.2

7.8

10.9

0.7

Surya Roshni

Accumulate

199

201

871

3,342

3,625

7.8

7.5

17.3

19.8

11.5

10.1

21.8

17.5

10.5

10.8

0.5

0.4

MT Educare

Neutral

137

546

366

417

17.7

18.2

9.4

10.8

14.6

12.7

3.2

2.8

22.2

22.3

1.4

1.2

Radico Khaitan

Buy

103

125

1,365

1,659

1,802

13.0

13.2

6.3

7.4

16.2

13.9

1.4

1.3

8.6

9.3

1.3

1.2

Garware Wall Ropes

Accumulate

480

524

1,050

873

938

12.9

13.1

30.9

34.9

15.5

13.8

2.4

2.1

15.7

15.2

1.1

1.0

Wonderla Holidays

Neutral

407

2,297

287

355

38.0

40.0

11.3

14.2

36.0

28.6

5.2

4.5

21.4

23.9

7.7

6.3

Linc Pen & Plastics

Neutral

278

411

382

420

9.3

9.5

13.5

15.7

20.7

17.7

3.5

3.1

17.1

17.3

1.1

1.0

The Byke Hospitality

Neutral

161

647

287

384

20.5

7.6

10.7

21.2

15.1

4.4

3.6

20.7

23.5

2.2

1.7

Interglobe Aviation

Neutral

869

31,311

21,122

26,005

14.5

27.6

110.7

132.1

7.9

6.6

47.0

33.6

168.5

201.1

1.5

1.2

Coffee Day Enterprises

Neutral

241

4,957

2,964

3,260

20.5

21.2

4.7

8.0

30.1

2.8

2.6

5.5

8.5

2.1

1.9

Ltd

Navneet Education

Neutral

105

2,492

1,062

1,147

24.0

6.1

6.6

17.2

15.8

3.5

3.1

20.6

19.8

2.4

2.2

Navkar Corporation

Buy

193

265

2,749

408

612

42.9

42.3

6.8

11.5

28.5

16.8

2.0

1.8

6.9

10.5

7.8

5.2

UFO Moviez

Neutral

468

1,292

619

685

33.2

33.4

30.0

34.9

15.6

13.4

2.2

1.9

13.8

13.9

1.8

1.5

VRL Logistics

Neutral

290

2,646

1,902

2,119

16.7

16.6

14.6

16.8

19.9

17.2

4.4

3.8

21.9

22.2

1.5

1.3

Team Lease Serv.

Neutral

1,107

1,892

3,229

4,001

1.5

1.8

22.8

32.8

48.6

33.7

5.2

4.5

10.7

13.4

0.5

0.4

S H Kelkar & Co.

Neutral

340

4,919

1,036

1,160

15.1

15.0

6.1

7.2

55.7

47.4

6.0

5.5

10.7

11.5

4.6

4.0

Quick Heal

Neutral

237

1,659

408

495

27.3

27.0

7.7

8.8

30.6

26.9

2.8

9.3

10.6

3.3

2.7

Narayana Hrudaya

Neutral

312

6,373

1,873

2,166

11.5

11.7

2.6

4.0

117.9

78.7

7.2

6.5

6.1

8.3

3.5

3.0

Manpasand Bever.

Neutral

742

3,712

836

1,087

19.6

19.4

16.9

23.8

43.9

31.1

5.3

4.6

12.0

14.8

4.2

3.2

Parag Milk Foods

Neutral

333

2,802

1,919

2,231

9.3

9.6

9.5

12.9

35.3

25.8

5.5

4.5

15.5

17.5

1.6

1.3

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on September 06, 2016

www.angelbroking.com

Market Outlook

September 07, 2016

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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