Market Outlook
September 8, 2016
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open flat.
BSE Sensex
(0.2)
(52)
28,926
Nifty
(0.3)
(25)
8,918
After showing good momentum in the last few trading session the US markets ended
the day lackluster. Lack of key economic data announcement kept investors and
Mid Cap
(0.1)
(15)
13,459
traders cautious and hence there was no proper direction to the market. Further it
Small Cap
0.4
52
12,816
seems the presidential election is making people more cautious.
Bankex
0.1
16
23,496
European markets ended with modest gain. Though investors remained watch full
over the outcome of the meeting of European Central Bank, major indices ended the
Global Indices
Chg (%)
(Pts)
(Close)
day with gains.
Dow Jones
(0.1)
(12)
18,526
The Indian markets witnessed some consolidation on Wednesday after strong
Nasdaq
0.2
8
5283
momentum over the last few days. While selective stocks witnessed buying other saw
FTSE
0.3
20
6,847
profit booking. Banking stocks were in buying interest during the day, further ICICI
Bank which got SEBI nod for its IPO of Insurance business also was in limelight.
Nikkei
(0.4)
(70)
17,012
Hang Seng
(0.2)
(46)
23,742
News Analysis
Shanghai Com
0.0
1
3,092
NHAI awards Rs 820 cr project to PNC Infratech
Detailed analysis on Pg2
Advances / Declines
BSE
NSE
Investor’s Ready Reckoner
Advances
1,374
801
Key Domestic & Global Indicators
Declines
1,389
807
Stock Watch: Latest investment recommendations on 150+ stocks
Unchanged
171
68
Refer Pg5 onwards
Volumes (` Cr)
Top Picks
CMP
Target
Upside
BSE
4,178
Company
Sector
Rating
(`)
(`)
(%)
NSE
25,426
HCL Tech
IT
Buy
787
1,000
27.1
Bharat Electronics
Capital Goods
Buy
1,210
1,414
16.9
Equitas Holdings
Financials
Buy
182
235
29.4
Net Inflows (` Cr)
Net
Mtd
Ytd
Navkar Corporation Others
Buy
191
265
38.8
FII
854
2,222
24,132
More Top Picks on Pg3
MFs
(768)
(594)
2,168
Key Upcoming Events
Previous
Consensus
Top Gainers
Price (`)
Chg (%)
Date
Region
Event Description
Reading
Expectations
Unitech
6
18.6
Sep 08 China
Exports YoY%
(4.40)
(4.00)
Sep 08 US
Initial Jobless Claims
263.00
264.50
Bhel
160
15.5
Sep 08 Euro
ECB announces Interest Rates
-
-
Aloktext
4
12.5
Sep 09 UK
CPI (YoY)
0.60
6.(
Jisljaleqs
96
7.9
More Events on Pg4
Religare
285
7.4
Top Losers
Price (`)
Chg (%)
Punjlloyd
25
(4.7)
Hcc
33
(4.6)
Petronet
345
(3.2)
Sanofi
4,351
(3.1)
Deltacorp
148
(2.9)
As on September 7, 2016
Market Outlook
September 8, 2016
News Analysis
NHAI awards `820cr highway project to PNC Infratech
The NHAI has awarded `820cr project in Rajasthan to PNC Infratech. The project
is for the development of NH-11A ( Extn) 4 Laning with paved shoulder of Dousa-
Lalsot-Kauthan section. The project with 83 KM has been awarded on a hybrid
annuity model. The project comprises development of 34 km stretch to 4 lane with
rigid pavement, from Dousa-to Lalsot and 2 laning of 49 km long section.
PNC Infratech had an unexecuted order book of `6474cr at the end of Q1FY17,
and the current order should further strengthen its position. Excluding the current
order the company had a Order Book to LTM sales ratio of 3.1, which seems
comfortable.
Given the higher ordering activity and attractive valuations we have been positive
about the company’s performance. Using SOTP valuation methodology we have
arrived at a fair of `143 for the stock and hence recommend BUY.
Economic and Political News
Finance minister announces special package for Andhra Pradesh
NITI ayog bats for strategic sale of 22 central PSUs
Corporate News
ICICI Life gets SEBI nod for IPO
BHEL reports strong numbers PAT up 54%
L&T aims to double the revenue in 5 years
ONGC profit falls 21%
NBCC gets orders worth `270cr from UGC
Quarterly Bloomberg Brokers Consensus Estimate
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 11, 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)
Market Outlook
September 8, 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, Angel Research
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
76
93
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, Angel Research
Market Outlook
September 8, 2016
Key Upcoming Events
Result Calendar
Date
Company
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 08, 2016
6:00 PM US
Initial Jobless claims
Thousands
Sep 3
263.00
265.00
5:15 PM Euro Zone ECB announces interest rates
%
Sep 8
-
-
China Exports YoY%
% Change Aug
(4.40)
(4.00)
Sep 09, 2016
7:00 AM China Consumer Price Index (YoY)
% Change Aug
1.80
1.70
Sep 12, 2016
7:30 AM China Industrial Production (YoY)
% Change Aug
6.00
6.20
Sep 13, 2016
5:30 PM India
Industrial Production YoY
% Change Jul
2.10
2:00 PM UK
CPI (YoY)
% Change Aug
0.60
Sep 14, 2016
2:00 PM UK
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 US
Industrial Production
%
Aug
0.74
(0.20)
US
Producer Price Index (mom)
% Change Aug
(0.50)
4:30 PM UK
BOE Announces rates
% Ratio
Sep 15
0.25
Sep 16, 2016
6:00 PM US
Consumer price index (mom)
% Change Aug
-
0.10
Sep 20, 2016
6:00 PM US
Building permits
Thousands Aug
1,144.00
6:00 PM US
Housing Starts
Thousands Aug
1,211.00
Source: Bloomberg, Angel Research
Stock Watch
September 08, 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
224
-
4,363
1,937
2,164
13.3
14.3
9.0
11.0
24.9
20.4
4.3
3.8
18.4
19.8
2.3
2.0
United Phosphorus
Accumulate
660
684
28,301
15,176
17,604
18.5
18.5
37.4
44.6
17.7
14.8
3.5
2.9
21.4
21.2
1.9
1.6
Auto & Auto Ancillary
Ashok Leyland
Buy
89
111
25,186
22,407
26,022
10.6
10.6
5.2
6.4
17.0
13.8
3.8
3.2
23.6
24.7
1.2
1.0
Bajaj Auto
Neutral
2,986
-
86,401
25,093
27,891
19.5
19.2
143.9
162.5
20.8
18.4
5.8
5.0
30.3
29.4
3.2
2.8
Bharat Forge
Neutral
885
-
20,591
7,726
8,713
20.5
21.2
35.3
42.7
25.1
20.7
4.6
4.2
18.9
20.1
2.7
2.3
Eicher Motors
Neutral
22,973
-
62,397
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
2.8
Gabriel India
Neutral
116
-
1,666
1,544
1,715
9.0
9.3
5.4
6.3
21.5
18.4
4.1
3.6
18.9
19.5
1.1
0.9
Hero Motocorp
Neutral
3,610
-
72,084
31,253
35,198
15.3
15.0
172.3
192.1
21.0
18.8
7.7
6.6
38.9
37.0
2.2
1.9
Jamna Auto Industries Neutral
216
-
1,726
1,486
1,620
9.8
9.9
15.0
17.2
14.4
12.6
3.2
2.7
21.8
21.3
1.2
1.1
L G Balakrishnan & Bros Neutral
557
-
875
1,302
1,432
11.6
11.9
43.7
53.0
12.8
10.5
1.8
1.6
13.8
14.2
0.7
0.6
Mahindra and Mahindra Neutral
1,489
-
92,462
46,534
53,077
11.6
11.7
67.3
78.1
22.1
19.1
3.6
3.1
15.4
15.8
2.0
1.7
Maruti
Neutral
5,338
-
161,250
69,186
82,217
14.7
14.4
198.5
241.4
26.9
22.1
5.2
4.2
20.2
20.0
2.0
1.6
Minda Industries
Neutral
1,580
-
2,506
2,728
3,042
9.0
9.1
68.2
86.2
23.2
18.3
5.3
4.2
23.8
24.3
0.9
0.8
Motherson Sumi
Neutral
336
-
44,490
45,896
53,687
7.8
8.3
13.0
16.1
25.8
20.9
8.3
6.6
34.7
35.4
1.0
0.8
Rane Brake Lining
Neutral
1,045
-
827
511
562
11.3
11.5
28.1
30.9
37.2
33.8
5.7
5.2
15.3
15.0
1.6
1.5
Setco Automotive
Neutral
44
-
584
741
837
13.0
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
588
-
169,681
300,209
338,549
8.9
8.4
42.7
54.3
13.8
10.8
2.2
1.9
15.6
17.2
0.7
0.6
TVS Motor
Neutral
330
-
15,697
13,390
15,948
6.9
7.1
12.8
16.5
25.9
20.0
6.4
5.1
26.3
27.2
1.2
1.0
Amara Raja Batteries
Accumulate
1,018
1,174
17,387
5,429
6,471
17.5
17.6
35.3
43.5
28.8
23.4
6.6
5.4
25.3
24.8
3.1
2.5
Exide Industries
Neutral
191
-
16,214
7,439
8,307
15.0
15.0
8.1
9.3
23.6
20.5
3.3
2.9
14.3
16.7
1.8
1.6
Apollo Tyres
Neutral
206
-
10,488
12,877
14,504
14.3
13.9
21.4
23.0
9.6
9.0
1.5
1.3
16.4
15.2
1.0
0.9
Ceat
Buy
1,017
1,119
4,113
7,524
8,624
13.0
12.7
131.1
144.3
7.8
7.1
1.4
1.2
19.8
18.6
0.6
0.5
JK Tyres
Neutral
145
-
3,290
7,455
8,056
15.0
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
1,208
-
1,500
660
810
15.2
16.4
54.5
72.8
22.2
16.6
6.9
6.3
31.5
39.2
2.0
1.6
Subros
Neutral
127
-
760
1,488
1,681
11.7
11.9
6.4
7.2
19.8
17.7
2.1
1.9
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
45
-
443
709
814
4.1
4.6
1.4
2.1
32.0
21.3
1.3
1.2
4.4
6.0
0.8
0.7
BEML
Accumulate
1,082
1,157
4,508
3,451
4,055
6.3
9.2
31.4
57.9
34.5
18.7
2.1
1.9
6.3
10.9
1.4
1.2
Bharat Electronics
Buy
1,210
1,414
29,039
8,137
9,169
16.8
17.2
58.7
62.5
20.6
19.4
3.2
2.8
44.6
46.3
2.6
2.3
Stock Watch
September 08, 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
391
-
12,933
6,511
7,514
7.9
8.7
12.9
16.3
30.3
24.0
5.5
4.8
16.7
18.5
1.7
1.5
BGR Energy
Neutral
119
-
859
16,567
33,848
6.0
5.6
7.8
5.9
15.3
20.2
0.9
0.8
4.7
4.2
0.2
0.1
BHEL
Neutral
160
-
39,113
28,797
34,742
-
2.8
2.3
6.9
69.5
23.2
1.2
1.1
1.3
4.8
0.8
0.6
Blue Star
Accumulate
514
578
4,898
4,351
5,024
6.4
7.1
17.2
20.6
29.9
24.9
19.5
16.2
23.1
24.1
1.2
1.0
Crompton Greaves
Neutral
84
-
5,236
5,777
6,120
5.9
7.0
3.3
4.5
25.3
18.6
1.1
1.1
4.4
5.9
0.9
0.7
Greaves Cotton
Neutral
135
-
3,292
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
1.4
Inox Wind
Buy
180
286
3,995
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
133
-
3,430
9,294
10,186
7.9
8.1
9.9
11.9
13.5
11.2
2.0
1.7
15.6
16.3
0.6
0.6
Thermax
Neutral
844
-
10,053
5,421
5,940
7.3
7.3
25.7
30.2
32.8
27.9
4.0
3.6
12.2
13.1
1.7
1.6
VATech Wabag
Buy
573
681
3,121
3,136
3,845
8.9
9.1
26.0
35.9
22.0
16.0
2.8
2.4
13.4
15.9
0.9
0.7
Cement
ACC
Neutral
1,692
-
31,775
11,225
13,172
13.2
16.9
44.5
75.5
38.0
22.4
3.6
3.3
11.2
14.2
2.8
2.4
Ambuja Cements
Neutral
274
-
54,397
9,350
10,979
18.2
22.5
5.8
9.5
47.2
28.8
4.0
3.6
10.2
12.5
5.9
5.0
India Cements
Neutral
154
-
4,732
4,364
4,997
18.5
19.2
7.9
11.3
19.5
13.6
1.4
1.4
8.0
8.5
1.9
1.6
JK Cement
Neutral
802
-
5,605
4,398
5,173
15.5
17.5
31.2
55.5
25.7
14.4
3.1
2.7
12.0
15.5
1.8
1.5
J K Lakshmi Cement
Neutral
468
-
5,506
2,913
3,412
14.5
19.5
7.5
22.5
62.4
20.8
3.8
3.2
12.5
18.0
2.5
2.1
Orient Cement
Neutral
194
-
3,971
2,114
2,558
18.5
20.5
8.1
11.3
23.9
17.2
3.5
3.0
9.0
14.0
2.6
2.0
UltraTech Cement
Neutral
4,089
-
112,208
25,768
30,385
21.0
23.5
111.0
160.0
36.8
25.6
4.7
4.1
13.5
15.8
4.4
3.7
Construction
ITNL
Buy
76
93
2,497
8,946
10,017
31.0
31.6
8.1
9.1
9.4
8.3
0.4
0.4
4.2
5.0
3.6
3.4
KNR Constructions
Accumulate
712
802
2,003
1,385
1,673
14.7
14.0
41.2
48.5
17.3
14.7
3.2
2.8
14.9
15.2
1.5
1.2
Larsen & Toubro
Accumulate
1,519
1,700
141,591
67,665
77,249
10.7
11.5
57.3
71.2
26.5
21.3
2.4
2.3
12.6
14.3
2.3
2.0
Gujarat Pipavav Port
Neutral
184
-
8,876
705
788
52.2
51.7
5.0
5.6
36.7
32.8
3.6
3.3
11.2
11.2
12.4
10.6
Nagarjuna Const.
Neutral
87
-
4,856
8,842
9,775
9.1
8.8
5.3
6.4
16.5
13.7
1.3
1.2
8.2
9.1
0.7
0.6
PNC Infratech
Accumulate
122
129
3,140
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
353
-
1,745
6,829
7,954
10.5
10.5
31.4
37.4
11.2
9.4
1.2
1.1
9.9
13.4
0.7
0.6
Power Mech Projects
Neutral
472
-
695
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
298
-
5,117
3,598
4,140
10.3
10.6
9.0
11.9
33.1
25.1
3.5
3.0
9.9
11.9
1.7
1.4
NBCC
Neutral
252
-
15,117
7,428
9,549
7.9
8.6
8.2
11.0
30.7
22.9
1.5
1.2
28.2
28.7
1.7
1.3
MEP Infra
Neutral
43
-
700
1,877
1,943
30.6
29.8
3.0
4.2
14.4
10.3
6.9
4.7
0.6
0.6
1.8
1.6
SIPL
Neutral
104
-
3,665
1,036
1,252
65.5
66.2
(8.4)
(5.6)
3.9
4.5
(22.8)
(15.9)
11.8
9.8
Stock Watch
September 08, 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
268
-
9,020
1,725
1,935
16.0
19.1
11.4
13.9
23.5
19.3
3.2
3.1
13.4
15.3
4.2
3.7
Financials
Axis Bank
Neutral
625
-
149,172
58,081
66,459
3.5
3.5
32.4
44.6
19.3
14.0
2.6
2.2
13.6
16.5
-
-
Bank of Baroda
Neutral
175
-
40,277
19,980
23,178
1.8
1.8
11.5
17.3
15.2
10.1
1.7
1.4
8.3
10.1
-
-
Canara Bank
Neutral
307
-
16,645
15,225
16,836
1.8
1.8
14.5
28.0
21.1
11.0
1.5
1.2
5.8
8.5
-
-
Dewan Housing Finance Neutral
297
-
8,663
2,225
2,688
2.9
2.9
29.7
34.6
10.0
8.6
1.6
1.4
16.1
16.8
-
-
Equitas Holdings
Buy
182
235
6,090
939
1,281
11.7
11.5
5.8
8.2
31.3
22.2
2.7
2.4
10.9
11.5
-
-
Federal Bank
Neutral
74
-
12,792
9,353
10,623
2.9
2.9
4.4
5.8
16.9
12.8
1.6
1.4
9.5
11.0
-
-
HDFC
Neutral
1,428
-
225,714
11,475
13,450
3.4
3.4
45.3
52.5
31.5
27.2
6.1
5.4
20.2
20.5
-
-
HDFC Bank
Neutral
1,288
-
326,025
46,097
55,433
4.5
4.5
58.4
68.0
22.1
18.9
3.9
3.2
18.8
18.6
-
-
ICICI Bank
Neutral
278
-
161,798
39,029
45,903
3.3
3.3
16.7
16.3
16.7
17.1
2.1
1.9
10.1
12.4
-
-
LIC Housing Finance
Neutral
588
-
29,692
3,712
4,293
2.6
2.5
39.0
46.0
15.1
12.8
2.8
2.4
19.9
20.1
-
-
Punjab Natl.Bank
Neutral
139
-
27,343
23,532
23,595
2.3
2.4
6.8
12.6
20.5
11.1
3.2
2.3
3.3
6.5
-
-
South Ind.Bank
Neutral
24
-
3,288
6,435
7,578
2.5
2.5
2.7
3.1
9.0
7.9
1.2
1.0
10.1
11.2
-
-
St Bk of India
Neutral
267
-
206,917
88,650
98,335
2.6
2.6
13.5
18.8
19.7
14.2
1.9
1.7
7.0
8.5
-
-
Union Bank
Neutral
151
-
10,391
13,450
14,925
2.3
2.3
25.5
34.5
5.9
4.4
0.9
0.7
7.5
10.2
-
-
Yes Bank
Neutral
1,405
-
59,167
8,978
11,281
3.3
3.4
74.0
90.0
19.0
15.6
3.6
3.1
17.0
17.2
-
-
FMCG
Asian Paints
Neutral
1,178
-
112,965
17,128
18,978
16.8
16.4
19.1
20.7
61.7
56.9
21.5
20.2
34.8
35.5
6.6
6.0
Britannia
Neutral
3,489
-
41,860
9,795
11,040
14.6
14.9
80.3
94.0
43.5
37.1
17.9
13.8
41.2
-
4.1
3.6
Colgate
Neutral
990
-
26,933
4,605
5,149
23.4
23.4
23.8
26.9
41.6
36.8
23.0
18.0
64.8
66.8
5.7
5.1
Dabur India
Neutral
297
-
52,255
8,315
9,405
19.8
20.7
8.1
9.2
36.7
32.3
10.2
8.5
31.6
31.0
6.0
5.3
GlaxoSmith Con*
Neutral
6,226
-
26,182
4,350
4,823
21.2
21.4
179.2
196.5
34.7
31.7
9.2
7.8
27.1
26.8
5.4
4.8
Godrej Consumer
Neutral
1,670
-
56,859
10,235
11,428
18.4
18.6
41.1
44.2
40.6
37.8
9.0
7.6
24.9
24.8
5.5
4.8
HUL
Neutral
932
-
201,643
35,252
38,495
17.6
17.4
20.4
21.9
45.6
42.6
37.5
32.9
82.2
77.3
5.6
5.1
ITC
Accumulate
262
283
315,893
40,059
44,439
39.0
39.2
9.1
10.1
28.8
25.9
7.8
6.9
27.2
26.5
7.4
6.6
Marico
Neutral
297
-
38,350
6,430
7,349
18.8
19.5
6.4
7.7
46.5
38.6
14.0
11.8
33.2
32.5
5.8
5.0
Nestle*
Neutral
6,479
-
62,467
10,073
11,807
20.7
21.5
124.8
154.2
51.9
42.0
21.3
19.2
34.8
36.7
6.1
5.2
Tata Global
Neutral
142
-
8,975
8,675
9,088
9.8
9.8
7.4
8.2
19.2
17.3
2.2
2.1
7.9
8.1
1.0
0.9
Procter & Gamble
Accumulate
6,601
7,369
21,427
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
IT
HCL Tech^
Buy
787
1,000
111,012
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
Stock Watch
September 08, 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
IT
Infosys
Buy
1,055
1,370
242,328
69,934
79,025
27.5
27.5
64.8
72.0
16.3
14.7
3.6
3.3
22.0
22.3
2.9
2.5
TCS
Buy
2,447
3,004
482,164
121,684
136,286
27.3
27.3
135.0
150.1
18.1
16.3
6.0
5.5
33.2
33.9
3.8
3.3
Tech Mahindra
Buy
471
700
45,744
30,347
33,685
17.0
17.0
37.5
41.3
12.6
11.4
2.7
2.4
21.8
20.7
1.3
1.1
Wipro
Buy
482
680
117,198
51,631
55,822
21.7
17.9
35.9
36.9
13.4
13.1
2.8
2.6
19.0
18.1
2.0
1.8
Media
D B Corp
Neutral
412
-
7,565
2,297
2,590
27.4
28.2
21.0
23.4
19.6
17.6
4.6
4.0
23.7
23.1
3.1
2.7
HT Media
Neutral
86
-
2,007
2,693
2,991
12.6
12.9
7.9
9.0
10.9
9.6
0.9
0.9
7.8
8.3
0.3
0.2
Jagran Prakashan
Buy
195
225
6,378
2,355
2,635
28.0
28.0
10.8
12.5
18.1
15.6
3.9
3.4
21.7
21.7
2.7
2.4
Sun TV Network
Neutral
487
-
19,200
2,850
3,265
70.1
71.0
26.2
30.4
18.6
16.0
4.8
4.2
24.3
25.6
6.2
5.3
Hindustan Media
Neutral
285
-
2,095
1,016
1,138
24.3
25.2
27.3
30.1
10.5
9.5
2.0
1.8
16.2
15.8
1.3
1.2
Ventures
TV Today Network
Buy
300
363
1,790
637
743
27.5
27.5
18.4
21.4
16.3
14.0
2.8
2.4
17.4
17.2
2.5
2.0
Metals & Mining
Coal India
Neutral
331
-
208,977
84,638
94,297
21.4
22.3
24.5
27.1
13.5
12.2
5.6
5.4
42.6
46.0
2.0
1.8
Hind. Zinc
Neutral
228
-
96,485
14,252
18,465
55.9
48.3
15.8
21.5
14.5
10.6
2.4
2.1
17.0
20.7
6.8
5.3
Hindalco
Neutral
160
-
32,998
107,899
112,095
7.4
8.2
9.2
13.0
17.4
12.3
0.8
0.8
4.8
6.6
0.8
0.8
JSW Steel
Neutral
1,851
-
44,731
53,201
58,779
16.1
16.2
130.6
153.7
14.2
12.0
1.9
1.7
14.0
14.4
1.6
1.4
NMDC
Neutral
115
-
45,416
6,643
7,284
44.4
47.7
7.1
7.7
16.1
14.9
1.4
1.4
8.8
9.2
4.2
3.7
SAIL
Neutral
52
-
21,435
47,528
53,738
(0.7)
2.1
(1.9)
2.6
20.0
0.6
0.5
(1.6)
3.9
1.3
1.2
Vedanta
Neutral
174
-
51,467
71,744
81,944
19.2
21.7
13.4
20.1
13.0
8.6
1.1
1.0
8.4
11.3
1.1
0.8
Tata Steel
Neutral
390
-
37,873
121,374
121,856
7.2
8.4
18.6
34.3
21.0
11.4
1.3
1.2
6.1
10.1
0.9
0.9
Oil & Gas
Cairn India
Neutral
201
-
37,600
9,127
10,632
4.3
20.6
8.8
11.7
22.8
17.1
0.7
0.7
3.3
4.2
5.6
4.7
GAIL
Neutral
397
-
50,295
56,220
65,198
9.3
10.1
27.1
33.3
14.6
11.9
1.3
1.3
9.3
10.7
1.1
0.9
ONGC
Neutral
245
-
209,695
137,222
152,563
15.0
21.8
19.5
24.1
12.6
10.2
1.1
1.0
8.5
10.1
1.8
1.6
Indian Oil Corp
Neutral
568
-
137,798
373,359
428,656
5.9
5.5
54.0
59.3
10.5
9.6
1.6
1.5
16.0
15.6
0.5
0.5
Reliance Industries
Neutral
1,017
-
329,903
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
617
-
11,629
3,483
4,083
20.2
21.4
24.3
30.4
25.4
20.3
5.8
4.6
25.5
25.3
3.3
2.8
Aurobindo Pharma
Accumulate
783
877
45,798
15,720
18,078
23.7
23.7
41.4
47.3
18.9
16.6
4.9
3.8
29.6
26.1
3.1
2.7
Aventis*
Neutral
4,391
-
10,113
2,357
2,692
17.3
17.3
153.5
169.2
28.6
26.0
4.9
3.9
25.8
28.4
4.1
3.3
Cadila Healthcare
Neutral
382
-
39,071
11,126
13,148
22.0
22.0
17.1
20.0
22.3
19.1
5.7
4.6
28.8
26.6
3.5
2.9
Cipla
Sell
581
490
46,667
15,378
18,089
17.4
18.4
21.6
27.2
26.9
21.4
3.5
3.0
13.7
15.2
3.2
2.7
Dr Reddy's
Neutral
3,141
-
52,045
16,043
18,119
23.1
24.7
126.0
157.8
24.9
19.9
3.7
3.2
15.7
17.1
3.2
2.8
Stock Watch
September 08, 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
176
45
2,846
1,718
1,890
22.7
22.8
9.5
11.3
18.6
15.6
1.8
1.6
10.1
10.9
2.1
1.8
GSK Pharma*
Neutral
3,008
-
25,476
3,528
3,811
16.6
18.8
51.8
59.4
58.1
50.6
15.5
15.5
26.3
30.6
7.0
6.5
Indoco Remedies
Sell
333
225
3,065
1,112
1,289
18.2
18.2
13.2
15.6
25.2
21.3
4.5
3.8
19.2
19.2
2.8
2.4
Ipca labs
Accumulate
564
613
7,114
3,303
3,799
15.3
15.3
17.3
19.7
32.6
28.6
2.8
2.6
9.1
9.4
2.3
2.0
Lupin
Buy
1,542
1,809
69,513
15,912
18,644
26.4
26.7
58.1
69.3
26.5
22.3
5.2
4.2
21.4
20.9
4.4
3.6
Sun Pharma
Buy
779
944
187,590
31,129
35,258
30.0
30.9
28.0
32.8
27.8
23.8
4.3
3.6
18.7
18.9
5.6
4.8
Power
Tata Power
Neutral
77
-
20,745
36,916
39,557
17.4
27.1
5.1
6.3
15.0
12.2
1.3
1.2
9.0
10.3
1.6
1.4
NTPC
Neutral
161
-
132,793
86,605
95,545
17.5
20.8
11.8
13.4
13.7
12.0
1.4
1.3
10.5
11.1
2.9
2.9
Power Grid
Neutral
185
-
96,654
25,763
29,762
74.3
73.1
14.8
17.3
12.5
10.7
2.0
1.7
16.9
17.5
8.1
7.7
Real Estate
Prestige Estate
Accumulate
198
210
7,423
4,707
5,105
25.2
26.0
10.3
13.0
19.2
15.2
1.5
1.4
10.3
10.2
2.7
2.4
MLIFE
Buy
431
522
1,770
1,152
1,300
22.7
24.6
29.9
35.8
14.4
12.1
1.1
1.0
7.6
8.6
2.3
1.9
Telecom
Bharti Airtel
Neutral
321
-
128,157
105,086
114,808
34.5
34.7
12.2
16.4
26.3
19.6
1.8
1.7
6.8
8.4
2.1
1.9
Idea Cellular
Neutral
84
-
30,139
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
4,582
-
9,736
3,153
3,583
14.1
14.4
152.2
182.7
30.1
25.1
147.8
126.2
25.6
26.1
2.8
2.4
Bajaj Electricals
Accumulate
272
306
2,747
5,099
5,805
5.6
5.9
11.4
14.6
23.9
18.6
3.2
2.8
13.4
15.1
0.5
0.5
Finolex Cables
Neutral
428
-
6,541
2,883
3,115
12.0
12.1
14.2
18.6
30.1
23.0
16.0
14.0
15.8
14.6
2.0
1.8
Goodyear India*
Accumulate
601
684
1,386
1,598
1,704
10.4
10.2
49.4
52.6
12.2
11.4
56.2
49.3
18.2
17.0
0.5
73.0
Hitachi
Neutral
1,500
-
4,079
2,081
2,433
8.8
8.9
33.4
39.9
44.9
37.6
36.2
30.2
22.1
21.4
1.9
1.6
Jyothy Laboratories
Neutral
320
-
5,787
1,440
2,052
11.5
13.0
8.5
10.0
37.6
32.0
9.1
8.4
18.6
19.3
4.3
3.0
Page Industries
Neutral
15,123
-
16,868
2,450
3,124
20.1
17.6
299.0
310.0
50.6
48.8
336.8
257.1
47.1
87.5
7.0
5.5
Relaxo Footwears
Neutral
423
-
5,075
2,085
2,469
9.2
8.2
7.6
8.0
55.9
53.2
21.7
18.5
17.9
18.8
2.6
2.2
Siyaram Silk Mills
Accumulate
1,281
1,469
1,201
1,799
2,040
11.6
11.7
104.9
122.4
12.2
10.5
2.0
1.7
16.4
16.4
0.9
0.8
Styrolution ABS India*
Neutral
559
-
983
1,440
1,537
9.2
9.0
40.6
42.6
13.8
13.1
35.2
32.0
12.3
11.6
0.7
0.6
TVS Srichakra
Accumulate
2,689
2,932
2,059
2,304
2,614
13.7
13.8
231.1
266.6
11.6
10.1
302.2
237.9
33.9
29.3
0.9
0.8
HSIL
Neutral
353
-
2,553
2,384
2,515
15.8
16.3
15.3
19.4
23.1
18.2
22.9
19.7
7.8
9.3
1.3
1.1
Kirloskar Engines India
Neutral
300
-
4,332
2,554
2,800
9.9
10.0
10.5
12.1
28.5
24.8
11.9
11.3
10.7
11.7
1.2
1.1
Ltd
M M Forgings
Neutral
432
-
522
546
608
20.4
20.7
41.3
48.7
10.5
8.9
59.2
52.4
16.6
17.0
0.8
0.7
Banco Products (India)
Neutral
230
-
1,648
1,353
1,471
12.3
12.4
14.5
16.3
15.9
14.1
21.9
19.8
14.5
14.6
1.2
125.7
Competent Automobiles Neutral
181
-
111
1,137
1,256
3.1
2.7
28.0
23.6
6.5
7.7
34.9
31.5
14.3
11.5
0.1
0.1
Stock Watch
September 08, 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
1,271
-
1,897
1,995
2,165
10.7
10.4
69.8
80.6
18.2
15.8
72.6
63.1
16.6
16.5
1.0
0.8
Visaka Industries
Neutral
202
-
320
1,051
1,138
10.3
10.4
21.0
23.1
9.6
8.7
25.8
24.2
9.0
9.2
0.6
0.5
Transport Corporation of
Neutral
186
-
1,424
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
0.6
India
Elecon Engineering
Accumulate
56
63
614
1,482
1,660
13.7
14.5
3.9
5.8
14.5
9.7
3.4
3.1
7.8
10.9
0.7
0.7
Surya Roshni
Neutral
204
-
895
3,342
3,625
7.8
7.5
17.3
19.8
11.8
10.3
22.5
18.0
10.5
10.8
0.5
0.5
MT Educare
Neutral
135
-
538
366
417
17.7
18.2
9.4
10.8
14.4
12.5
3.2
2.8
22.2
22.3
1.4
1.2
Radico Khaitan
Buy
102
125
1,355
1,659
1,802
13.0
13.2
6.3
7.4
16.1
13.8
1.4
1.3
8.6
9.3
1.3
1.1
Garware Wall Ropes
Accumulate
509
524
1,115
873
938
12.9
13.1
30.9
34.9
16.5
14.6
2.6
2.2
15.7
15.2
1.1
1.0
Wonderla Holidays
Neutral
405
-
2,289
287
355
38.0
40.0
11.3
14.2
35.9
28.5
5.1
4.5
21.4
23.9
7.7
6.2
Linc Pen & Plastics
Neutral
275
-
407
382
420
9.3
9.5
13.5
15.7
20.4
17.5
3.5
3.0
17.1
17.3
1.1
1.0
The Byke Hospitality
Neutral
162
-
650
287
384
20.5
20.5
7.6
10.7
21.3
15.1
4.5
3.6
20.7
23.5
2.3
1.7
Interglobe Aviation
Neutral
871
-
31,392
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
238
-
4,910
2,964
3,260
20.5
21.2
4.7
8.0
-
29.8
2.8
2.5
5.5
8.5
2.1
1.9
Ltd
Navneet Education
Neutral
106
-
2,525
1,062
1,147
24.0
24.0
6.1
6.6
17.4
16.0
3.6
3.2
20.6
19.8
2.4
2.2
Navkar Corporation
Buy
191
265
2,722
408
612
42.9
42.3
6.8
11.5
28.2
16.6
2.0
1.8
6.9
10.5
7.6
5.1
UFO Moviez
Neutral
448
-
1,237
619
685
33.2
33.4
30.0
34.9
15.0
12.8
2.1
1.8
13.8
13.9
1.8
1.4
VRL Logistics
Neutral
289
-
2,640
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
1,125
-
1,923
3,229
4,001
1.5
1.8
22.8
32.8
49.4
34.2
5.3
4.6
10.7
13.4
0.5
0.4
S H Kelkar & Co.
Neutral
339
-
4,904
1,036
1,160
15.1
15.0
6.1
7.2
55.5
47.2
5.9
5.4
10.7
11.5
4.6
4.1
Quick Heal
Neutral
239
-
1,676
408
495
27.3
27.0
7.7
8.8
30.9
27.2
2.9
2.9
9.3
10.6
3.2
2.7
Narayana Hrudaya
Neutral
311
-
6,346
1,873
2,166
11.5
11.7
2.6
4.0
117.4
78.3
7.2
6.5
6.1
8.3
3.5
3.0
Manpasand Bever.
Neutral
745
-
3,729
836
1,087
19.6
19.4
16.9
23.8
44.1
31.3
5.3
4.6
12.0
14.8
4.2
3.1
Parag Milk Foods
Neutral
334
-
2,809
1,919
2,231
9.3
9.6
9.5
12.9
35.4
25.8
5.5
4.5
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 07, 2016
Market Outlook
September 08, 2016
Research Team Tel: 022 - 39357800
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