Market Outlook
December 07, 2016
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian market is expected to open on a flat note tracking the SGX Nifty.
BSE Sensex
0.2
44
26,393
Nifty
0.2
14
8,143
The US markets continued it’s up move albeit at a lower scale and touched new high
on Tuesday. Financial services and telecom stocks witnessed buying interest during
Mid Cap
0.5
64
12,344
the day. Though crude oil slipped in trading during the day overall mood among
Small Cap
0.4
49
12,164
investors and traders continued to be positive.
Bankex
0.2
32
21,075
Majority of the European markets closed the day on a positive note. After a weak
start and some choppy trading action, the market advanced in the afternoon.
Global Indices
Chg (%)
(Pts)
(Close)
Banking stocks were in favor and witnessed buying during the day.
Dow Jones
0.2
35
19,252
Indian markets remained on positive territory for most of the day on Tuesday and
Nasdaq
0.5
24
5,333
closed marginally up. Steady global markets helped in stability in the Indian
FTSE
0.5
33
6,779
markets. However, traders and investors seems avoided from taking big positions
Nikkei
0.5
86
18,361
ahead of crucial RBI’s monetary policy. We believe a rate cut is very much on card;
Hang Seng
0.8
170
22,675
however what is more important is also to watch is the RBI’s commentary on the
economic scenario and its impact on demonetization.
Shanghai Com
(0.2)
(5)
3,200
News Analysis
Advances / Declines
BSE
NSE
Bharti Airtel’s market share gain in six cricles
Advances
1,535
933
Detailed analysis on Pg2
Declines
1,136
679
Investor’s Ready Reckoner
Unchanged
158
72
Key Domestic & Global Indicators
Volumes (` Cr)
Stock Watch: Latest investment recommendations on 150+ stocks
Refer Pg5 onwards
BSE
2,203
NSE
13,621
Top Picks
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
Net Inflows (` Cr)
Net
Mtd
Ytd
Amara Raja Batt. Auto & Auto Ancill.
Buy
922
1,167
26.6
FII
(279)
(805)
26,473
Alkem Laboratories Pharmaceuticals
Buy
1,695
1,989
17.3
MFs
(246)
74
35,737
HCL Tech
IT
Buy
785
1,000
27.4
Power Grid Corp. Power
Buy
183
223
21.9
Navkar Corp.
Others
Buy
176
265
50.5
Top Gainers
Price (`)
Chg (%)
More Top Picks on Pg3
Nationalum
62
9.6
Carerating
1,485
6.2
Key Upcoming Events
Previous
Consensus
Oberoirlty
296
4.6
Date
Region
Event Description
Reading
Expectations
Torntpower
182
4.5
Dec 7 UK
Industrial Production (YoY)
0.3
0.5
Beml
877
4.3
Dec 7 India
RBI Reserve Repo rate
5.8
--
Dec 7 India
RBI Repo rate
6.3
--
Dec 7 India
RBI Cash Reserve Ratio
4.0
4.0
Top Losers
Price (`)
Chg (%)
Dec 8 Euro Zone ECB announces interest rates
--
--
Rtnpower
7
(5.7)
More Events on Pg4
Sjvn
32
(4.5)
Mrpl
100
(4.2)
Crompgreav
66
(3.9)
Suntv
475
(3.8)
As on December 06, 2016
Market Outlook
December 07, 2016
News Analysis
Bharti Airtel gains market share in top six circles;
As per a data released by the telecom regulator TRAI, Bharti Airtel has registered
significant increase in revenue market share in the top six circles in the country
since 2012-13. Bharti Airtel has gained 155 bps while Idea has gained 40 bps
and Vodafone 30 bps. It has been observed that despite some circles reporting
very low revenue growth for operators Bharti has gained market share. The fact
that Bharti has gained market share within the top six circles is very important as
these circles combined contribute ~46% of the industry’s revenues. Out of the six
circles Bharti has gained decent market share in five out of the six circles viz; Tamil
Nadu, Karnataka, Delhi, Andhra Pradesh, and Mumbai. Within the large circles
only in Mumbai it witnessed some decline in share.
Economic and Political News
RBI to soon issue new `100 notes, older notes to continue as legal tender
Military tie up likely during Bangladesh PM’s visit
Travel companies hit as note ban keeps holidayers away
SEBI working on norms for instant redemption of liquid mutual funds
Corporate News
Engineers India looks at doubling order book targets of FY17
Indian Army to use Tata Safari Storme SUVs instead of Maruti Gypsys
Inox Wind bags 50 MW wind power project from Gujarat
Market Outlook
December 07, 2016
Top Picks ★★★★★
Large Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
To outpace battery industry growth due to better
Amara Raja Batteries
15,746
922
1,167
26.6
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
20,266
1,695
1,989
17.3
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
1,10,744
785
1,000
27.4
all the bad news.
Back on the growth trend; expect a long term growth of 14%
Infosys
2,22,103
967
1,249
29.1
to be a US$20bn in FY2020.
Strong order backlog and improvement in execution would
Larsen & Tourbo
1,26,972
1,362
1,634
19.9
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
68,891
1,528
1,809
18.4
which is also one of the largest among the generic
companies.
Going forward, we expect the company to report strong
Power Grid Corporation
95,686
183
223
21.9
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
648
215
351
63.1
owing to better product mix, higher B2C sales and
amalgamation synergy.
Among the top 4 players in the consumer durables segment.
Bajaj Electricals
2,207
218
274
25.3
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
4,602
483
634
31.4
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
7,907
253
350
38.6
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
5,378
160
235
46.6
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
5,585
171
225
31.7
radio business (Radio City) would also boost the company's
revenue growth.
Speedier execution and speedier sales, strong revenue
Mahindra Lifespace
1,438
350
522
49.0
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
968
80
107
33.0
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
2,511
176
265
50.5
ICD as well CFS augurs well for the company.
Strong brands and distribution network would boost growth
Siyaram Silk Mills
1,163
1,241
1,605
29.3
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
1,722
289
385
33.4
and anticipated growth in ad spends by corporate to benefit
the stock.
Source: Company, Angel Research
Market Outlook
December 07, 2016
Key Upcoming Events
Global economic events release calendar
Date
Time
Country
Event Description
Unit
Period
Bloomberg Data
Last Reported Estimated
Dec 7, 2016
3:00PM
UK
Industrial Production (YoY)
% Change
Oct
0.30
0.50
2:30PM
India
RBI Repo rate
%
Dec 7
6.25
6.00
2:30PM
India
RBI Reverse Repo rate
%
Dec 7
5.75
5.50
2:30PM
India
RBI Cash Reserve ratio
%
Dec 7
4.00
4.00
Dec 8, 2016
6:15PM
Euro Zone
ECB announces interest rates
%
Dec 8
--
--
7:00PM
US
Initial Jobless claims
Thousands
Dec 3
268.00
255.00
China
Exports YoY%
% Change
Nov
(7.30)
(5.00)
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
(0.35)
US
Producer Price Index (mom)
% Change
Nov
0.40
--
2:00PM
Germany
PMI Services
Value
Dec P
55.10
--
Dec 15, 2016
12:00PM
India
Monthly Wholesale Prices YoY%
% Change
Nov
3.39
--
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
1,233.00
7:00PM
US
Building permits
Thousands
Nov
1,260.00
1,238.00
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
3.30
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
--
Dec 27, 2016
8:30PM
US
Consumer Confidence
S.A./ 1985=100
Dec
107.10
--
Source: Bloomberg, Angel Research
Stock Watch
December 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
202
-
3,922
1,937
2,164
13.3
14.3
9.0
11.0
22.4
18.3
3.9
3.4
18.4
19.8
2.1
1.8
United Phosphorus
Neutral
673
-
34,116
15,176
17,604
18.5
18.5
37.4
44.6
18.0
15.1
3.5
2.9
21.4
21.2
2.4
2.0
Auto & Auto Ancillary
Ashok Leyland
Buy
78
111
22,212
22,407
26,022
10.6
10.6
5.2
6.4
15.0
12.2
3.4
2.9
23.6
24.7
1.1
0.9
Bajaj Auto
Neutral
2,728
-
78,941
25,093
27,891
19.5
19.2
143.9
162.5
19.0
16.8
5.3
4.6
30.3
29.4
2.9
2.5
Bharat Forge
Neutral
897
-
20,876
7,726
8,713
20.5
21.2
35.3
42.7
25.4
21.0
4.7
4.2
18.9
20.1
2.8
2.4
Eicher Motors
Neutral
22,458
-
60,997
16,583
20,447
17.5
18.0
598.0
745.2
37.6
30.1
12.8
9.8
41.2
38.3
3.5
2.8
Gabriel India
Buy
107
130
1,540
1,544
1,715
9.0
9.3
5.4
6.3
19.9
17.0
3.8
3.3
18.9
19.5
1.0
0.8
Hero Motocorp
Accumulate
3,198
3,541
63,860
30,958
34,139
15.7
15.7
193.6
208.3
16.5
15.4
6.5
5.3
34.2
30.5
1.9
1.7
Jamna Auto Industries Neutral
177
-
1,417
1,486
1,620
9.8
9.9
15.0
17.2
11.8
10.3
2.6
2.2
21.8
21.3
1.0
0.9
L G Balakrishnan & Bros Neutral
609
-
955
1,302
1,432
11.6
11.9
43.7
53.0
13.9
11.5
2.0
1.8
13.8
14.2
0.8
0.7
Mahindra and Mahindra Neutral
1,175
-
72,991
46,534
53,077
11.6
11.7
67.3
78.1
17.5
15.1
2.8
2.5
15.4
15.8
1.5
1.3
Maruti
Buy
5,142
6,006
155,321
68,057
82,958
15.8
15.5
212.1
261.2
24.2
19.7
4.8
4.0
19.8
20.3
2.0
1.5
Minda Industries
Neutral
303
-
2,402
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
312
-
43,793
45,896
53,687
7.8
8.3
13.0
16.1
23.9
19.4
7.7
6.2
34.7
35.4
1.0
0.9
Rane Brake Lining
Neutral
1,021
-
808
511
562
11.3
11.5
28.1
30.9
36.3
33.0
5.5
5.0
15.3
15.0
1.7
1.6
Setco Automotive
Neutral
38
-
504
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
441
-
127,427
300,209
338,549
8.9
8.4
42.7
54.3
10.4
8.1
1.7
1.4
15.6
17.2
0.5
0.5
TVS Motor
Neutral
356
-
16,892
13,390
15,948
6.9
7.1
12.8
16.5
27.9
21.5
6.9
5.5
26.3
27.2
1.3
1.1
Amara Raja Batteries
Buy
922
1,167
15,746
5,504
6,605
17.6
17.5
33.4
40.9
27.6
22.5
6.1
5.0
22.1
22.0
2.9
2.4
Exide Industries
Neutral
177
-
15,049
7,439
8,307
15.0
15.0
8.1
9.3
21.9
19.0
3.1
2.7
14.3
16.7
1.6
1.5
Apollo Tyres
Buy
189
235
9,623
12,877
14,504
14.3
13.9
21.4
23.0
8.8
8.2
1.4
1.2
16.4
15.2
0.9
0.9
Ceat
Accumulate
1,269
1,450
5,133
7,524
8,624
13.0
12.7
131.1
144.3
9.7
8.8
1.8
1.5
19.8
18.6
0.8
0.7
JK Tyres
Neutral
122
-
2,774
7,455
8,056
15.0
15.0
21.8
24.5
5.6
5.0
1.2
1.0
22.8
21.3
0.5
0.4
Swaraj Engines
Neutral
1,340
-
1,664
660
810
15.2
16.4
54.5
72.8
24.6
18.4
7.7
7.0
31.5
39.2
2.3
1.9
Subros
Neutral
167
-
1,004
1,488
1,681
11.7
11.9
6.4
7.2
26.1
23.3
2.8
2.5
10.8
11.4
0.9
0.8
Indag Rubber
Neutral
177
-
464
286
326
19.8
16.8
11.7
13.3
15.1
13.3
2.6
2.4
17.8
17.1
1.3
1.1
Capital Goods
ACE
Neutral
49
-
489
709
814
4.1
4.6
1.4
2.1
35.3
23.6
1.5
1.4
4.4
6.0
0.9
0.7
BEML
Neutral
873
-
3,635
3,451
4,055
6.3
9.2
31.4
57.9
27.8
15.1
1.7
1.5
6.3
10.9
1.2
1.0
Bharat Electronics
Neutral
1,457
-
32,539
8,137
9,169
16.8
17.2
58.7
62.5
24.8
23.3
3.8
3.4
44.6
46.3
3.0
2.7
Stock Watch
December 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
Buy
305
407
10,079
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
118
-
853
16,567
33,848
6.0
5.6
7.8
5.9
15.2
20.0
0.9
0.8
4.7
4.2
0.2
0.1
BHEL
Neutral
128
-
31,354
28,797
34,742
-
2.8
2.3
6.9
55.7
18.6
1.0
0.9
1.3
4.8
0.7
0.5
Blue Star
Buy
483
634
4,602
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
66
-
4,155
5,777
6,120
5.9
7.0
3.3
4.5
20.1
14.7
0.9
0.8
4.4
5.9
0.7
0.6
Greaves Cotton
Neutral
126
-
3,075
1,755
1,881
16.8
16.9
7.8
8.5
16.1
14.8
3.2
3.0
20.6
20.9
1.4
1.3
Inox Wind
Neutral
199
-
4,406
5,605
6,267
15.7
16.4
24.8
30.0
8.0
6.6
2.2
1.6
25.9
24.4
0.8
0.7
KEC International
Neutral
141
-
3,637
9,294
10,186
7.9
8.1
9.9
11.9
14.3
11.9
2.1
1.8
15.6
16.3
0.6
0.6
Thermax
Neutral
831
-
9,899
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
490
681
2,670
3,136
3,845
8.9
9.1
26.0
35.9
18.8
13.7
2.4
2.0
13.4
15.9
0.8
0.6
Cement
ACC
Neutral
1,348
-
25,317
11,225
13,172
13.2
16.9
44.5
75.5
30.3
17.9
2.9
2.6
11.2
14.2
2.3
1.9
Ambuja Cements
Neutral
210
-
41,768
9,350
10,979
18.2
22.5
5.8
9.5
36.3
22.1
3.1
2.7
10.2
12.5
4.5
3.8
India Cements
Neutral
115
-
3,519
4,364
4,997
18.5
19.2
7.9
11.3
14.5
10.1
1.0
1.0
8.0
8.5
1.6
1.4
JK Cement
Neutral
733
-
5,127
4,398
5,173
15.5
17.5
31.2
55.5
23.5
13.2
2.8
2.4
12.0
15.5
1.7
1.4
J K Lakshmi Cement
Buy
379
565
4,465
2,913
3,412
14.5
19.5
7.5
22.5
50.6
16.9
3.1
2.6
12.5
18.0
2.1
1.8
Orient Cement
Buy
129
215
2,649
2,114
2,558
18.5
20.5
8.1
11.3
16.0
11.4
2.4
2.0
9.0
14.0
1.9
1.5
UltraTech Cement
Neutral
3,604
-
98,906
25,768
30,385
21.0
23.5
111.0
160.0
32.5
22.5
4.1
3.6
13.5
15.8
3.9
3.3
Construction
ITNL
Neutral
100
-
3,283
8,946
10,017
31.0
31.6
8.1
9.1
12.3
11.0
0.5
0.5
4.2
5.0
3.7
3.4
KNR Constructions
Neutral
794
-
2,233
1,385
1,673
14.7
14.0
41.2
48.5
19.3
16.4
3.6
3.1
14.9
15.2
1.7
1.4
Larsen & Toubro
Buy
1,362
1,634
126,972
111,017
124,908
11.0
11.0
61.1
66.7
22.3
20.4
2.7
2.5
13.1
12.9
2.2
2.0
Gujarat Pipavav Port
Neutral
141
-
6,829
705
788
52.2
51.7
5.0
5.6
28.3
25.2
2.8
2.5
11.2
11.2
9.3
7.9
Nagarjuna Const.
Neutral
80
-
4,456
8,842
9,775
9.1
8.8
5.3
6.4
15.1
12.5
1.2
1.1
8.2
9.1
0.7
0.6
PNC Infratech
Buy
111
143
2,842
2,350
2,904
13.1
13.2
9.0
8.8
12.3
12.6
0.5
0.4
15.9
13.9
1.3
1.1
Simplex Infra
Neutral
294
-
1,456
6,829
7,954
10.5
10.5
31.4
37.4
9.4
7.9
1.0
0.9
9.9
13.4
0.6
0.5
Power Mech Projects
Neutral
455
-
669
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
273
298
4,679
3,598
4,140
10.3
10.6
9.0
11.9
30.3
22.9
3.2
2.8
9.9
11.9
1.6
1.4
NBCC
Neutral
234
-
14,037
7,428
9,549
7.9
8.6
8.2
11.0
28.5
21.3
1.4
1.1
28.2
28.7
1.6
1.2
MEP Infra
Neutral
35
-
562
1,877
1,943
30.6
29.8
3.0
4.2
11.5
8.2
5.6
3.8
0.6
0.6
1.7
1.5
SIPL
Neutral
91
-
3,207
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 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
294
-
9,903
1,725
1,935
16.0
19.1
11.4
13.9
25.8
21.1
3.6
3.4
13.4
15.3
4.7
4.2
Financials
Axis Bank
Buy
457
630
109,003
46,932
53,575
3.5
3.4
32.4
44.6
14.1
10.2
1.8
1.6
13.6
16.5
-
-
Bank of Baroda
Neutral
162
-
37,385
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
314
-
17,031
15,225
16,836
1.8
1.8
14.5
28.0
21.6
11.2
1.5
1.2
5.8
8.5
-
-
Dewan Housing Finance Buy
253
350
7,907
2,225
2,688
2.9
2.9
29.7
34.6
8.5
7.3
1.4
1.2
16.1
16.8
-
-
Equitas Holdings
Buy
160
235
5,378
939
1,281
11.7
11.5
5.8
8.2
27.7
19.6
2.4
2.1
10.9
11.5
-
-
Federal Bank
Neutral
69
-
11,916
9,353
10,623
2.9
2.9
4.4
5.8
15.8
12.0
1.5
1.3
9.5
11.0
-
-
HDFC
Neutral
1,244
-
196,640
11,475
13,450
3.4
3.4
45.3
52.5
27.5
23.7
5.3
4.7
20.2
20.5
-
-
HDFC Bank
Accumulate
1,193
1,350
302,087
46,097
55,433
4.5
4.5
58.4
68.0
20.4
17.6
3.6
3.0
18.8
18.6
-
-
ICICI Bank
Buy
261
315
151,996
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
145
174
2,607
3,339
3,799
2.7
2.8
11.0
14.0
13.2
10.4
1.4
1.3
11.2
12.7
-
-
LIC Housing Finance
Accumulate
561
630
28,327
3,712
4,293
2.6
2.5
39.0
46.0
14.4
12.2
2.7
2.3
19.9
20.1
-
-
Punjab Natl.Bank
Neutral
134
-
28,579
23,532
23,595
2.3
2.4
6.8
12.6
19.8
10.7
3.1
2.2
3.3
6.5
-
-
RBL Bank
Neutral
348
-
12,860
1,783
2,309
2.6
2.6
12.7
16.4
27.4
21.2
3.0
2.7
12.8
13.3
-
-
South Ind.Bank
Neutral
21
-
2,863
6,435
7,578
2.5
2.5
2.7
3.1
7.9
6.8
1.0
0.9
10.1
11.2
-
-
St Bk of India
Neutral
259
-
201,172
88,650
98,335
2.6
2.6
13.5
18.8
19.2
13.8
1.8
1.6
7.0
8.5
-
-
Union Bank
Neutral
143
-
9,851
13,450
14,925
2.3
2.3
25.5
34.5
5.6
4.2
0.8
0.7
7.5
10.2
-
-
Yes Bank
Neutral
1,193
-
50,225
8,978
11,281
3.3
3.4
74.0
90.0
16.1
13.3
3.1
2.6
17.0
17.2
-
-
FMCG
Asian Paints
Neutral
934
-
89,599
17,128
18,978
16.8
16.4
19.1
20.7
48.9
45.1
17.0
16.1
34.8
35.5
5.1
4.6
Britannia
Buy
3,003
3,626
36,026
9,594
11,011
14.6
14.9
80.3
94.0
37.4
31.9
15.4
11.9
41.2
-
3.6
3.1
Colgate
Accumulate
924
995
25,123
4,605
5,149
23.4
23.4
23.8
26.9
38.8
34.3
21.5
16.8
64.8
66.8
5.4
4.8
Dabur India
Accumulate
281
304
49,379
8,315
9,405
19.8
20.7
8.1
9.2
34.7
30.5
9.7
8.0
31.6
31.0
5.6
4.9
GlaxoSmith Con*
Neutral
5,001
-
21,032
4,350
4,823
21.2
21.4
179.2
196.5
27.9
25.5
7.4
6.3
27.1
26.8
4.2
3.7
Godrej Consumer
Neutral
1,463
-
49,817
10,235
11,428
18.4
18.6
41.1
44.2
35.6
33.1
7.9
6.7
24.9
24.8
5.0
4.4
HUL
Neutral
838
-
181,310
35,252
38,495
17.8
17.8
20.7
22.4
40.6
37.4
38.8
33.3
95.6
88.9
5.0
4.6
ITC
Buy
230
284
277,930
40,059
44,439
38.3
39.2
9.0
10.1
25.6
22.7
7.2
6.3
27.8
27.5
6.4
5.8
Marico
Buy
254
300
32,828
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
4.2
Nestle*
Neutral
6,264
-
60,394
10,073
11,807
20.7
21.5
124.8
154.2
50.2
40.6
20.6
18.5
34.8
36.7
5.8
4.9
Tata Global
Neutral
123
-
7,788
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 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
FMCG
Procter & Gamble
Accumulate
6,677
7,369
21,674
2,939
3,342
23.2
23.0
146.2
163.7
45.7
40.8
102.3
98.1
25.3
23.5
6.9
6.0
Hygiene
IT
HCL Tech^
Buy
785
1,000
110,744
49,242
57,168
20.5
20.5
55.7
64.1
14.1
12.3
2.9
2.2
20.3
17.9
2.1
1.7
Infosys
Buy
967
1,249
222,103
68,350
77,326
27.0
27.0
62.5
69.4
15.5
13.9
3.3
3.0
21.3
21.6
2.7
2.3
TCS
Buy
2,190
2,620
431,612
119,025
133,308
27.6
27.6
131.2
145.5
16.7
15.1
5.4
5.0
32.4
33.1
3.4
3.0
Tech Mahindra
Buy
465
600
45,162
29,673
32,937
15.5
17.0
32.8
39.9
14.2
11.7
2.8
2.4
19.6
20.7
1.3
1.1
Wipro
Buy
458
590
111,230
55,440
60,430
18.1
18.1
35.9
39.9
12.8
11.5
2.3
2.1
19.0
19.3
1.7
1.6
Media
D B Corp
Neutral
349
-
6,413
2,297
2,590
27.4
28.2
21.0
23.4
16.6
14.9
3.9
3.4
23.7
23.1
2.6
2.2
HT Media
Neutral
71
-
1,643
2,693
2,991
12.6
12.9
7.9
9.0
8.9
7.8
0.8
0.7
7.8
8.3
0.2
0.1
Jagran Prakashan
Buy
171
225
5,585
2,355
2,635
28.0
28.0
10.8
12.5
15.8
13.7
3.4
3.0
21.7
21.7
2.4
2.1
Sun TV Network
Neutral
475
-
18,699
2,850
3,265
70.1
71.0
26.2
30.4
18.1
15.6
4.6
4.1
24.3
25.6
6.2
5.2
Hindustan Media
Neutral
260
-
1,908
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
289
385
1,722
637
743
27.5
27.5
18.4
21.4
15.7
13.5
2.7
2.3
17.4
17.2
2.3
1.9
Metals & Mining
Coal India
Neutral
306
-
193,565
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
276
-
116,703
14,252
18,465
55.9
48.3
15.8
21.5
17.5
12.9
2.9
2.5
17.0
20.7
8.2
6.3
Hindalco
Neutral
175
-
36,168
107,899
112,095
7.4
8.2
9.2
13.0
19.0
13.5
0.9
0.9
4.8
6.6
0.9
0.8
JSW Steel
Neutral
1,648
-
39,825
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
124
-
39,074
6,643
7,284
44.4
47.7
7.1
7.7
17.4
16.0
1.5
1.5
8.8
9.2
3.7
3.3
SAIL
Neutral
51
-
21,125
47,528
53,738
(0.7)
2.1
(1.9)
2.6
19.7
0.6
0.5
(1.6)
3.9
1.3
1.2
Vedanta
Neutral
229
-
67,921
71,744
81,944
19.2
21.7
13.4
20.1
17.1
11.4
1.5
1.3
8.4
11.3
1.3
1.0
Tata Steel
Neutral
418
-
40,631
121,374
121,856
7.2
8.4
18.6
34.3
22.5
12.2
1.4
1.3
6.1
10.1
1.0
1.0
Oil & Gas
Cairn India
Neutral
251
-
47,087
9,127
10,632
4.3
20.6
8.8
11.7
28.5
21.5
0.9
0.9
3.3
4.2
6.6
5.5
GAIL
Neutral
430
-
54,595
56,220
65,198
9.3
10.1
27.1
33.3
15.9
12.9
1.5
1.4
9.3
10.7
1.2
1.0
ONGC
Neutral
299
-
255,381
137,222
152,563
15.0
21.8
19.5
24.1
15.3
12.4
1.3
1.2
8.5
10.1
2.1
1.9
Indian Oil Corp
Neutral
296
-
143,565
373,359
428,656
5.9
5.5
54.0
59.3
5.5
5.0
0.9
0.8
16.0
15.6
0.5
0.5
Reliance Industries
Neutral
1,003
-
325,331
301,963
358,039
12.1
12.6
87.7
101.7
11.4
9.9
1.2
1.1
10.7
11.3
1.6
1.3
Pharmaceuticals
Alembic Pharma
Neutral
630
-
11,877
3,483
4,083
20.2
21.4
24.3
30.4
25.9
20.7
5.9
4.7
25.5
25.3
3.3
2.8
Alkem Laboratories Ltd
Buy
1,695
1,989
20,266
6,043
6,893
18.7
19.3
80.5
88.8
21.1
19.1
4.7
3.9
22.3
20.3
3.3
2.8
Aurobindo Pharma
Buy
731
877
42,761
15,720
18,078
23.7
23.7
41.4
47.3
17.7
15.5
4.6
3.6
29.6
26.1
2.9
2.6
Sanofi India*
Neutral
4,243
-
9,771
2,277
2,597
17.3
18.3
149.4
172.0
28.4
24.7
4.7
3.8
25.1
28.8
4.0
3.2
Stock Watch
December 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
Cadila Healthcare
Neutral
395
-
40,458
10,429
12,318
22.6
22.0
16.9
19.2
23.4
20.6
6.0
4.8
28.5
25.7
3.9
3.2
Cipla
Reduce
575
490
46,201
15,378
18,089
17.4
18.4
21.6
27.2
26.6
21.1
3.4
3.0
13.7
15.2
3.2
2.7
Dr Reddy's
Neutral
3,189
-
52,842
16,043
18,119
20.8
22.4
112.4
142.9
28.4
22.3
3.8
3.3
14.1
15.9
3.3
2.9
Dishman Pharma
Neutral
233
-
3,760
1,718
1,890
22.7
22.8
9.5
11.3
24.5
20.6
2.4
2.2
10.1
10.9
2.7
2.3
GSK Pharma*
Neutral
2,761
-
23,385
3,000
3,312
15.4
20.6
46.5
60.8
59.4
45.4
14.3
14.2
26.3
30.6
7.5
6.9
Indoco Remedies
Reduce
255
240
2,354
1,112
1,289
16.2
18.2
11.6
16.0
22.0
16.0
3.5
3.0
17.0
20.1
2.2
1.9
Ipca labs
Accumulate
557
613
7,024
3,303
3,799
15.3
15.3
17.3
19.7
32.2
28.3
2.8
2.6
9.1
9.4
2.3
2.0
Lupin
Buy
1,528
1,809
68,891
15,912
18,644
26.4
26.7
58.1
69.3
26.3
22.1
5.1
4.2
21.4
20.9
4.4
3.6
Sun Pharma
Buy
706
847
169,913
31,129
35,258
32.0
32.9
30.2
35.3
23.4
20.0
3.8
3.1
20.0
20.1
5.0
4.2
Power
Tata Power
Neutral
75
-
20,339
36,916
39,557
17.4
27.1
5.1
6.3
14.8
11.9
1.3
1.2
9.0
10.3
1.6
1.4
NTPC
Neutral
163
-
134,731
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
2.9
Power Grid
Buy
183
223
95,686
25,315
29,193
88.2
88.7
14.2
17.2
12.9
10.7
2.0
1.7
15.2
16.1
8.4
7.6
Real Estate
MLIFE
Buy
350
522
1,438
1,152
1,300
22.7
24.6
29.9
35.8
11.7
9.8
0.9
0.8
7.6
8.6
2.0
1.6
Telecom
Bharti Airtel
Neutral
329
-
131,534
105,086
114,808
34.5
34.7
12.2
16.4
27.0
20.1
1.8
1.7
6.8
8.4
2.2
1.9
Idea Cellular
Neutral
74
-
26,790
40,133
43,731
37.2
37.1
6.4
6.5
11.6
11.5
1.0
0.9
8.2
7.6
1.7
1.4
zOthers
Abbott India
Neutral
4,816
-
10,233
3,153
3,583
14.1
14.4
152.2
182.7
31.6
26.4
155.3
132.7
25.6
26.1
3.0
2.5
Bajaj Electricals
Buy
218
274
2,207
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
-
6,274
2,883
3,115
12.0
12.1
14.2
18.6
28.9
22.1
15.4
13.4
15.8
14.6
1.9
1.7
Goodyear India*
Neutral
722
-
1,666
1,598
1,704
10.4
10.2
49.4
52.6
14.6
13.7
67.5
59.2
18.2
17.0
0.7
101.2
Hitachi
Neutral
1,358
-
3,693
2,081
2,433
8.8
8.9
33.4
39.9
40.7
34.0
32.8
27.3
22.1
21.4
1.8
1.5
Jyothy Laboratories
Neutral
369
-
6,692
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
13,329
-
14,867
2,450
3,124
20.1
17.6
299.0
310.0
44.6
43.0
296.9
226.6
47.1
87.5
6.1
4.8
Relaxo Footwears
Neutral
414
-
4,973
2,085
2,469
9.2
8.2
7.6
8.0
54.8
52.1
21.2
18.1
17.9
18.8
2.5
2.1
Siyaram Silk Mills
Accumulate
1,241
1,605
1,163
1,733
1,948
11.6
11.7
96.6
114.7
12.8
10.8
2.0
1.7
15.3
15.7
0.9
0.8
Styrolution ABS India*
Neutral
576
-
1,012
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
3,351
-
2,566
2,304
2,614
13.7
13.8
231.1
266.6
14.5
12.6
376.5
296.4
33.9
29.3
1.1
1.0
HSIL
Neutral
285
-
2,059
2,384
2,515
15.8
16.3
15.3
19.4
18.6
14.7
18.5
15.9
7.8
9.3
1.0
0.9
Kirloskar Engines India
Neutral
325
-
4,700
2,554
2,800
9.9
10.0
10.5
12.1
31.0
26.9
13.0
12.2
10.7
11.7
1.5
1.3
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
Stock Watch
December 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
Banco Products (India) Neutral
194
-
1,390
1,353
1,471
12.3
12.4
14.5
16.3
13.4
11.9
18.5
16.7
14.5
14.6
1.0
103.6
Competent Automobiles Neutral
162
-
100
1,137
1,256
3.1
2.7
28.0
23.6
5.8
6.9
31.2
28.2
14.3
11.5
0.1
0.1
Nilkamal
Neutral
1,344
-
2,005
1,995
2,165
10.7
10.4
69.8
80.6
19.3
16.7
76.8
66.7
16.6
16.5
1.0
0.9
Visaka Industries
Neutral
199
-
317
1,051
1,138
10.3
10.4
21.0
23.1
9.5
8.6
25.6
23.9
9.0
9.2
0.6
0.5
Transport Corporation of
Neutral
169
-
1,298
2,671
2,911
8.5
8.8
13.9
15.7
12.2
10.8
1.7
1.5
13.7
13.8
0.6
0.5
India
Elecon Engineering
Neutral
53
-
596
1,482
1,660
13.7
14.5
3.9
5.8
13.6
9.2
3.2
2.9
7.8
10.9
0.7
0.6
Surya Roshni
Neutral
193
-
847
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
0.5
MT Educare
Neutral
112
-
444
366
417
17.7
18.2
9.4
10.8
11.9
10.3
2.6
2.3
22.2
22.3
1.1
1.0
Radico Khaitan
Buy
118
147
1,576
1,667
1,824
13.0
13.2
6.7
8.2
17.8
14.5
1.6
1.5
9.0
10.2
1.3
1.2
Garware Wall Ropes
Neutral
630
-
1,379
873
938
14.3
14.3
35.2
37.5
17.9
16.8
3.1
2.7
17.5
15.9
1.5
1.4
Wonderla Holidays
Neutral
325
-
1,837
287
355
38.0
40.0
11.3
14.2
28.8
22.9
4.1
3.6
21.4
23.9
6.1
4.9
Linc Pen & Plastics
Neutral
241
-
356
382
420
9.3
9.5
13.5
15.7
17.9
15.3
3.1
2.7
17.1
17.3
1.0
0.9
The Byke Hospitality
Neutral
162
-
648
287
384
20.5
20.5
7.6
10.7
21.3
15.1
4.4
3.6
20.7
23.5
2.3
1.7
Interglobe Aviation
Neutral
849
-
30,603
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
204
-
4,197
2,964
3,260
20.5
21.2
4.7
8.0
-
25.5
2.4
2.2
5.5
8.5
1.8
1.6
Ltd
Navneet Education
Neutral
108
-
2,575
1,062
1,147
24.0
24.0
6.1
6.6
17.8
16.3
3.7
3.2
20.6
19.8
2.5
2.3
Navkar Corporation
Buy
176
265
2,511
369
561
42.9
42.3
7.2
11.5
24.4
15.3
1.8
1.6
7.4
10.5
7.8
5.1
UFO Moviez
Neutral
437
-
1,205
619
685
33.2
33.4
30.0
34.9
14.6
12.5
2.0
1.7
13.8
13.9
1.7
1.3
VRL Logistics
Neutral
264
-
2,407
1,902
2,119
16.7
16.6
14.6
16.8
18.1
15.7
4.0
3.5
21.9
22.2
1.4
1.2
Team Lease Serv.
Neutral
885
-
1,513
3,229
4,001
1.5
1.8
22.8
32.8
38.9
27.0
4.2
3.6
10.7
13.4
0.4
0.3
S H Kelkar & Co.
Neutral
298
-
4,305
1,036
1,160
15.1
15.0
6.1
7.2
48.8
41.5
5.2
4.8
10.7
11.5
4.0
3.6
Quick Heal
Neutral
244
-
1,712
408
495
27.3
27.0
7.7
8.8
31.6
27.8
2.9
2.9
9.3
10.6
3.3
2.8
Narayana Hrudaya
Neutral
334
-
6,829
1,873
2,166
11.5
11.7
2.6
4.0
126.3
84.3
7.8
7.0
6.1
8.3
3.7
3.2
Manpasand Bever.
Neutral
613
-
3,506
836
1,087
19.6
19.4
16.9
23.8
36.3
25.8
4.4
3.8
12.0
14.8
3.9
2.9
Parag Milk Foods
Neutral
267
-
2,242
1,919
2,231
9.3
9.6
9.5
12.9
28.2
20.6
4.4
3.6
15.5
17.5
1.3
1.1
Mirza International
Buy
80
107
968
987
1,106
18.0
18.0
6.5
7.6
12.3
10.6
2.0
1.7
15.9
15.7
1.2
1.1
Asian Granito
Buy
215
351
648
1,071
1,182
12.1
12.4
12.7
16.0
16.9
13.5
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 06, 2016
Market Outlook
December 07, 2016
Research Team Tel: 022 - 39357800
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