Market Outlook
October 10, 2017
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open flat tracking global indices and SGX Nifty.
BSE Sensex
0.1
33
31,847
Nifty
0.1
39
9,989
U.S. stocks closed flat for another session as most financial and government
institutions were closed for Columbus day. On Wednesday, the Federal Reserve
Mid Cap
(0.0)
(6)
15,834
would be releasing the minutes of its latest monetary policy meeting. Major banks
Small Cap
0.6
104
16,733
like Citigroup, JPMorgan Chase, Bank of America, and Wells Fargo are expected to
Bankex
0.3
83
27,294
report their quarterly results later this week.
Global Indices
Chg (%)
(Pts)
(Close)
UK stocks posted a slight decline as disappointing economic data from from China
pulled mining stocks lower. Anglo American, Rio Tinto and Glencore fell by 3.4 , 2.2
Dow Jones
(0.1)
(13)
22,761
and 1.3 percent respectively. A survey by payment services provider Visa showed
Nasdaq
(0.2)
(10)
6,580
that UK consumer spending had declined in September, after a gain in August,
FTSE
(0.2)
(15)
7,508
indicating weakness in the economy.
Nikkei
(00.3
62
20,691
Indian Markets had a flat session after initially opening positive for the day. The GST
Hang Seng
(0.5)
(131)
28,327
council lowered taxes on 27 items. The biggest gainer for the session was the
Shanghai Com
0.8
25
3,374
Consumer Durables index, which closed up 0.9 percent. The Oil & Gas index
reversed some of the previous sessions gains to close down 1 percent.
Advances / Declines
BSE
NSE
News Analysis
Advances
1,540
1,987
Declines
1,212
757
Lupin gets USFDA approval to market hypertension drug
Unchanged
123
64
L&T Ltd wins `1,361cr contract to supply 5 mln smart electricity meters
Detailed analysis is on Pg2
Volumes (` Cr)
BSE
3,666
Investor’s Ready Reckoner
NSE
24,578
Key Domestic & Global Indicator
Stock Watch: Latest investment recommendations on 150+ stocks
#Net Inflows (` Cr)
Net
Mtd
Ytd
Refer Pg7 onwards
FII
(5(954)
(2(2,582)
4133,94
Top Picks
MFs
1,156
4,3,611
1489,95
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
Blue Star
Capital Goods Accumulate
772
850
10.1
Top Gainer
Price (`)
Chg (%)
Dewan Housing FinanceFinancials
Accumulate
545
610
12.0
Sobhaem
459
17.4
Asian Granito
Other
Buy
494
570
15.3
Srf
1,744
10.6
Navkar Corporation
Other
Buy
184
265
43.7
Religare
50
9.9
KEI Industries
Capital Goods
Accumulate
356
380
6.9
More Top Picks on Pg5
Centralbk
81
8.1
Idfc
64
8.1
Key Upcoming Events
Previous
Consensus
Date
Region
Event Description
Reading
Expectations
Top Loser
Price (`)
Chg (%)
Oct10, 2017 UK
Industrial Production (YoY)
0.40
0.90
Jpassociat
219
(6.8)
Oct12, 2017 US
Initial Jobless claims
260.00
252.00
Oct12, 2017 India
Industrial Production YoY
1.20
Sparc
367
(5.8)
Oct12, 2017 US
Producer Price Index (mom)
0.50
Bbtc
1,354
(4.3)
Oct13, 2017 India
Imports YoY%
21.00
Adanient
119
(3.3)
More Events on Pg7
Jublfood
1,498
(2.9)
#as on 09th Oct, 2017
Market Outlook
October 10, 2017
News Analysis
Lupin gets USFDA approval to market hypertension drug
Drug firm Lupin received final approval from the US health regulator, the USFDA
to market generic Nadolol tablets in the US market. The drug is used for treatment
of hypertension. The tablets are for management of patients with angina pectoris
and for the treatment of hypertension. The company received final approval to
market its Nadolol tablets USP, 20 mg, 40 mg and 80 mg. The product is a
generic version of US WorldMeds LLC's Corgard tablets in the same strengths. As
per IMS MAT June 2017 data, Nadolol tablets had annual sales of around USD
109.8mln in the US.
L&T Ltd wins `1,361cr contract to supply 5 mln smart electricity
meters
Larsen and Toubro Ltd (L&T) has won a `1,361cr contract to supply 5 mln smart
electricity meters from state-owned Energy Efficiency Services Ltd (EESL). The
contract is to supply smart electricity meters at `2,722 per piece, the lowest bid, is
about 40-50% lower than the current market rate, said EESL. These smart
electricity meters are to be deployed over three years in Uttar Pradesh and
Haryana in order to address the two states high level of losses from billing
inefficiency.
Economic and Political News
Oil company heads push for petroleum products to be included in GST: Niti
Aayog CEO Amitabh Kant
Companies convicted of fraud and serious corporate offences to be barred
from participating in the privatisation of state-owned enterprises
Affordable Housing segment sees 27 percent YoY increase for period of
January-September 2017
Corporate News
Cairn India, a unit of Vedanta, to invest about `30,000cr in oil and gas
exploration projects
ONGC Videsh expects Sudan to payoff $400mln in dues after US lifts
sanctions
Reliance General Insurance files DRHP for IPO with Sebi
Market Outlook
October 10, 2017
Top Picks
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
Strong growth in domestic business due to its leade`hip
in acute therapeutic segment. Alkem expects to launch
Alkem Laboratories
22,455
1,878
2,079
10.7
more products in USA, which bodes for its international
business.
We expect the company would report strong profitability
Asian Granito
1,487
494
570
15.3
owing to better product mix, higher B2C sales and
amalgamation synergy.
Favorable outlook for the AC industry to augur well for
Cooling products business which is out pacing the
Blue Star
7,392
772
850
10.1
market growth. EMPPAC division's profitability to
improve once operating environment turns around.
With a focus on the low and medium income (LMI)
consumer segment, the company has increased its
Dewan Housing Finance
17,079
545
610
12.0
presence in tier-II & III cities where the growth
opportunity is immense.
Loan growth is likely to pick up after a sluggish FY17.
Lower credit cost will help in strong bottom-line growth.
Karur Vysya Bank
8,790
145
180
23.8
Increasing share of CASA will help in NIM
improvement.
High order book execution in EPC segment, rising B2C
KEI Industries
2,766
356
380
6.9
sales and higher exports to boost the revenues and
profitability
Expected to benefit from the lower capex requirement
Music Broadcast
2,266
397
434
9.3
and 15 year long radio broadcast licensing.
Massive capacity expansion along with rail advantage
Navkar Corporation
2,630
184
265
43.7
at ICD as well CFS augur well for the company
Strong brands and distribution network would boost
Siyaram Silk Mills
2,423
2,585
2,782
7.6
growth going ahead. Stock currently trades at an
inexpensive valuation.
Market leaderhip in Hindi news genre and no.
2
viewe`hip ranking in English news genre, exit from the
TV Today Network
2,299
385
435
12.9
radio business, and anticipated growth in ad spends by
corporates to benefit the stock.
After GST, the company is expected to see higher
volumes along with improving product mix. The Gujarat
Maruti Suzuki
2,38,424
7,893
8,658
9.7
plant will also enable higher operating leverage which
will be margin accretive.
We expect loan book to grow at 24.3% over next two
GIC Housing
2,777
516
655
27.0
year; change in borrowing mix will help in NIM
improvement..
Source: Company, Angel Research
Market Outlook
October 10, 2017
Key Upcoming Events
Global economic events release calendar
Bloomberg Data
Date
Time
Country
Event Description
Unit
Period
Last Reported
Estimated
Oct 10, 2017
2:00 PMUK
Industrial Production (YoY)
% Change
Aug
0.40
0.90
Oct 12, 2017
6:00 PMUS
Initial Jobless claims
Thousands
Oct 7
260.00
252.00
5:30 PMIndia
Industrial Production YoY
% Change
Aug
1.20
US
Producer Price Index (mom)
% Change
Sep
0.50
Oct 13, 2017
India
Imports YoY%
% Change
Sep
21.00
China
Exports YoY%
% Change
Sep
5.60
9.80
India
Exports YoY%
% Change
Sep
10.30
6:00 PMUS
Consumer price index (mom)
% Change
Sep
0.40
0.60
Oct 16, 2017
12:00 PMIndia
Monthly Wholesale Prices YoY%
% Change
Sep
3.24
7:00 AMChina
Consumer Price Index (YoY)
% Change
Sep
1.80
1.60
Oct 17, 2017
2:30 PMEuro Zone
Euro-Zone CPI (YoY)
%
Sep F
1.50
6:45 PMUS
Industrial Production
%
Sep
(0.90)
-
2:00 PMUK
CPI (YoY)
% Change
Sep
2.90
Oct 18, 2017
6:00 PMUS
Housing Starts
Thousands
Sep
1,180.00
1,190.00
6:00 PMUS
Building permits
Thousands
Sep
1,272.00
1,230.00
2:00 PMUK
Jobless claims change
% Change
Sep
(2.80)
Oct 19, 2017
7:30 AMChina
Industrial Production (YoY)
% Change
Sep
6.00
6.70
7:30 PMUS
Existing home sales
Million
Sep
5.35
5.32
Oct 20, 2017
7:30 AMChina
Real GDP (YoY)
% Change
3Q
6.90
6.80
Oct 23, 2017
7:30 PMEuro Zone
Euro-Zone Consumer Confidence
Value
Oct A
(1.20)
Oct 24, 2017
1:00 PMGermany
PMI Manufacturing
Value
Oct P
60.60
1:00 PMGermany
PMI Services
Value
Oct P
55.60
Oct 25, 2017
2:00 PMUK
GDP (YoY)
% Change
3Q A
1.50
7:30 PMUS
New home sales
Thousands
Sep
560.00
550.00
Source: Bloomberg, Angel Research
Market Outlook
October 10, 2017
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
10.0
6.0
9.1
5.1
8.8
5.0
9.0
5.0
4.4
8.0
7.9
4.2
7.6
7.5
8.0
7.3
7.2
4.0
3.5
7.0
3.2
2.8
7.0
6.1
6.1
3.0
2.4
5.7
6.0
2.0
1.2
1.2
5.0
1.0
4.0
-
3.0
(1.0)
(0.2)
Source: CSO, Angel Research
Source: MOSPI, Angel Research
Exhibit 3: Monthly CPI inflation trends
Exhibit 4: Manufacturing and services PMI
56.0
Mfg. PMI
Services PMI
(%)
5.0
54.0
4.3
4.2
4.5
3.9
52.0
4.0
3.6
3.7
3.4
3.4
3.2
50.0
3.5
3.0
3.0
48.0
2.4
2.2
2.5
46.0
2.0
1.5
1.5
44.0
1.0
42.0
0.5
40.0
-
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Source: MOSPI, Angel Research
Exhibit 5: Exports and imports growth trends
Exhibit 6: Key policy rates
(%)
Exports yoy growth
Imports yoy growth
(%)
Repo rate
Reverse Repo rate
CRR
60.0
6.50
50.0
6.00
40.0
5.50
30.0
5.00
20.0
4.50
10.0
4.00
0.0
3.50
(10.0)
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
Market Outlook
October 10, 2017
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
6.9
7.0
5.8
6.0
5.3
5.0
5.0
1.1
3.7
4.0
2.5
3.0
2.2
1.8
2.0
1.5
1.4
0.8
1.0
0.3
-
Source: Bloomberg, Angel Research
Exhibit 2: 2017 GDP Growth projection by IMF (%, yoy) across select developing and developed countries
(%)
7.2
6.6
7.0
6.0
5.1
5.0
4.5
4.0
3.0
3.0
2.3
2.0
1.4
1.6
2.0
1.4
1.2
0.2
0.8
1.0
-
Source: IMF, Angel Research
Exhibit 3: One year forward P-E ratio across select developing and developed countries
(x)
25.0
20.0
15.0
10.0
5.0
-
Source: IMF, Angel Research, data as of 09th Oct-17
Market Outlook
October 10, 2017
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
75,727
3.2
20.2
25.7
Russia
Micex
2,096
4.3
8.2
4.7
India
Nifty
9,989
0.7
3.2
13.9
China
Shanghai Composite
3,374
(0.1)
4.9
10.9
South Africa
Top 40
51,323
4.7
12.4
13.3
Mexico
Mexbol
50,072
(0.4)
(0.9)
4.3
Indonesia
LQ45
986
1.5
0.8
5.6
Malaysia
KLCI
1,764
(0.5)
(0.2)
5.7
Thailand
SET 50
1,080
3.7
8.7
13.6
USA
Dow Jones
22,761
4.5
6.3
24.2
UK
FTSE
7,508
1.5
1.9
6.2
Japan
Nikkei
20,691
6.7
3.0
25.8
Germany
DAX
12,976
6.2
4.3
24.6
France
CAC
5,366
4.9
4.4
20.6
Source: Bloomberg, Angel Research, data as of 09th Oct-17 p68in4
Stock Watch
October 10, 2017
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 )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Agri / Agri Chemical
Rallis
Reduce
230
209
4,465
1,873
2,099
15.0
15.0
9.5
10.5
24.2
21.9
3.7
3.3
15.8
16.0
2.3
2.1
United Phosphorus
Neutral
793
-
40,277
18,922
21,949
18.0
18.5
36.2
45.6
21.9
17.4
4.6
3.8
22.7
23.8
2.3
1.9
Auto & Auto Ancillary
Ashok Leyland
Neutral
124
-
36,318
23,339
27,240
10.1
10.8
4.7
6.2
26.7
20.0
5.3
4.7
20.0
23.6
1.5
1.3
Bajaj Auto
Neutral
3,128
-
90,518
23,936
27,955
19.5
20.1
142.7
167.3
21.9
18.7
4.8
4.3
21.8
22.8
3.4
2.8
Bharat Forge
Buy
643
875
29,916
7,637
8,755
21.7
23.2
36.1
47.3
17.8
13.6
3.2
2.7
18.5
20.8
3.8
3.2
Eicher Motors
Neutral
31,874
-
86,770
19,043
22,837
19.5
19.9
835.4
1,019.0
38.2
31.3
14.3
11.0
40.9
37.8
4.4
3.6
Gabriel India
Neutral
199
-
2,856
1,782
2,033
9.7
10.2
7.1
8.9
28.0
22.5
5.7
4.8
21.0
22.2
1.6
1.3
Hero Motocorp
Accumulate
3,688
4,129
73,642
32,239
36,878
16.0
15.6
184.4
206.5
20.0
17.9
6.3
5.5
31.3
30.7
2.1
1.8
Jamna Auto Industries Neutral
61
-
2,440
1,441
1,662
14.4
14.8
13.9
17.6
4.4
3.5
1.2
1.0
30.0
31.0
1.7
1.4
Mahindra and Mahindra Neutral
1,305
-
81,046
46,971
53,816
13.6
14.0
67.7
79.8
19.3
16.4
2.8
2.5
15.0
15.9
1.6
1.4
Maruti
Accumulate
7,893
8,658
238,424
81,825
101,245
15.0
15.0
283.5
356.0
27.8
22.2
6.1
5.0
21.9
22.4
2.6
2.0
Minda Industries
Neutral
834
-
7,206
4,328
5,084
11.0
11.9
27.3
36.4
30.6
22.9
6.5
5.1
23.1
25.6
1.7
1.5
Motherson Sumi
Neutral
340
-
71,481
55,937
64,445
10.8
11.4
16.9
21.1
20.1
16.1
4.5
4.6
25.2
25.4
1.3
1.1
Tata Motors
Neutral
426
-
122,972
303,167
343,649
11.8
13.8
33.1
54.7
12.9
7.8
2.1
1.7
16.9
23.0
0.5
0.4
TVS Motor
Neutral
676
-
32,109
13,992
16,216
9.0
9.4
17.1
20.3
39.6
33.3
10.5
8.1
29.7
27.7
2.2
1.9
Amara Raja Batteries
Buy
685
858
11,703
6,140
7,122
14.3
15.6
29.3
39.0
23.4
17.6
4.0
3.3
17.1
19.0
1.9
1.6
Exide Industries
Neutral
204
-
17,306
8,689
9,854
15.1
15.2
9.7
11.0
21.1
18.5
3.7
3.3
15.7
16.1
1.7
1.5
Apollo Tyres
Neutral
239
-
12,150
15,739
17,326
13.3
14.6
20.4
26.7
11.7
8.9
1.4
1.3
20.4
26.7
1.0
0.9
Ceat
Neutral
1,743
-
7,050
6,661
7,717
11.1
14.2
116.2
178.2
15.0
9.8
2.6
2.2
15.2
21.3
1.2
1.0
JK Tyres
Neutral
151
-
3,435
8,318
9,239
16.2
16.4
21.0
27.5
7.2
5.5
1.4
1.1
19.1
20.4
0.9
0.7
Swaraj Engines
Neutral
2,049
-
2,545
788
889
16.4
16.5
71.6
81.0
28.6
25.3
8.3
7.7
29.6
31.0
2.9
2.5
Subros
Neutral
243
-
1,456
1,855
2,135
11.6
11.8
10.3
14.7
23.7
16.6
3.6
3.1
15.8
19.1
1.0
0.9
Capital Goods
BEML
Neutral
1,705
-
7,102
4,286
5,194
7.1
8.2
42.9
58.1
39.8
29.4
3.3
3.0
7.6
8.7
1.7
1.4
Bharat Electronics
Neutral
166
-
40,860
10,258
12,470
19.6
19.5
7.3
8.6
22.8
19.3
0.4
0.4
20.4
21.9
3.5
2.8
Voltas
Neutral
520
-
17,216
6,778
8,004
9.6
11.0
17.1
22.4
30.4
23.2
7.3
6.4
17.7
19.8
2.2
1.9
BHEL
Neutral
86
-
31,739
33,200
39,167
6.8
9.5
6.2
11.2
13.9
7.7
0.6
0.6
4.6
8.0
0.5
0.4
Blue Star
Accumulate
772
850
7,392
5,220
6,207
6.3
6.6
16.8
22.3
45.9
34.6
9.1
8.1
19.9
23.3
1.4
1.1
CG Power and Industrial
Neutral
80
-
5,011
6,555
7,292
7.5
7.5
-
0.8
7,995.0
99.9
1.2
1.3
0.1
1.2
0.9
0.8
Solutions
Greaves Cotton
Neutral
135
-
3,292
1,778
1,993
14.7
15.1
8.1
9.1
16.6
14.8
3.7
3.5
21.8
23.6
1.6
1.4
Stock Watch
October 10, 2017
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 )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Capital Goods
KEC International
Buy
302
350
7,776
9,779
11,113
9.4
9.8
14.2
18.2
21.3
16.6
4.1
3.4
21.1
22.1
1.1
0.9
KEI Industries
Accumulate
356
380
2,766
3,001
3,391
10.0
10.0
13.0
16.1
27.3
22.1
5.0
4.1
18.2
18.7
1.1
1.0
Thermax
Neutral
922
-
10,991
4,125
4,747
10.3
10.8
26.7
31.5
34.6
29.3
3.9
3.5
11.2
12.0
2.4
2.1
VATech Wabag
Buy
589
681
3,216
3,867
4,126
9.6
10.0
34.9
39.8
16.9
14.8
2.8
2.4
17.7
17.5
0.8
0.8
Cement
ACC
Neutral
1,728
-
32,449
12,255
13,350
13.5
14.3
58.0
66.2
29.8
26.1
3.5
3.3
11.5
12.2
2.6
2.4
Ambuja Cements
Neutral
279
-
55,469
10,250
11,450
17.5
19.0
7.2
8.3
38.8
33.7
2.8
2.6
7.0
7.8
5.2
4.6
India Cements
Neutral
182
-
5,616
6,135
6,750
14.8
15.2
8.5
11.5
21.4
15.9
1.1
1.0
4.8
6.2
1.3
1.1
JK Cement
Neutral
973
-
6,805
4,150
4,775
19.2
20.0
49.0
63.5
19.9
15.3
3.1
2.7
17.0
18.5
2.1
1.8
J K Lakshmi Cement
Neutral
396
-
4,660
3,422
3,757
15.5
17.0
13.5
23.2
29.3
17.1
3.1
2.6
10.8
15.5
1.8
1.5
Orient Cement
Neutral
157
-
3,216
2,215
3,233
16.8
17.0
5.9
6.9
26.6
22.8
2.0
1.9
10.8
10.1
2.5
1.6
UltraTech Cement
Neutral
3,965
-
108,842
28,250
35,150
20.2
23.5
77.5
122.2
51.2
32.4
4.3
3.9
9.6
14.8
4.3
3.5
Construction
KNR Constructions
Neutral
209
-
2,940
1,846
2,203
14.5
14.5
12.1
13.7
17.3
15.3
1.0
0.8
17.5
16.7
1.6
1.4
Larsen & Toubro
Neutral
1,141
-
159,788
95,787
109,476
10.2
11.6
44.5
50.8
25.7
22.5
3.2
3.0
12.9
13.1
2.2
2.0
Gujarat Pipavav Port
Neutral
145
-
7,012
739
842
61.6
62.7
5.1
6.2
28.4
23.6
3.6
3.5
12.7
14.9
9.0
7.7
PNC Infratech
Neutral
151
-
3,872
2,040
2,935
13.0
13.0
6.4
9.0
23.6
16.8
0.6
0.5
9.7
12.2
1.9
1.4
Simplex Infra
Neutral
474
-
2,343
6,012
6,619
11.6
11.7
21.1
31.0
22.5
15.3
1.6
1.4
6.5
8.6
0.9
0.8
Sadbhav Engineering
Neutral
286
-
4,903
3,823
4,426
10.7
10.8
10.3
11.8
27.7
24.2
3.3
2.9
10.1
10.5
1.6
1.4
NBCC
Neutral
218
-
19,634
9,099
12,706
6.4
6.4
7.3
9.6
30.0
22.8
1.3
1.0
27.5
30.5
2.0
1.5
MEP Infra
Neutral
99
-
1,605
2,403
2,910
18.3
16.8
2.4
6.1
42.0
16.2
15.9
10.7
35.2
55.8
1.8
1.5
SIPL
Neutral
103
-
3,628
2,060
2,390
46.8
47.7
(5.8)
(3.1)
3.9
4.4
(14.2)
(2.3)
6.5
6.1
Engineers India
Neutral
149
-
10,014
1,795
2,611
21.1
22.4
5.9
8.1
25.2
18.4
1.8
1.7
12.9
16.1
4.0
2.6
Financials
Axis Bank
Accumulate
505
580
121,115
32,558
35,843
3.5
3.2
27.8
41.0
18.2
12.3
2.0
1.7
11.4
14.9
-
-
Bank of Baroda
Neutral
142
-
32,615
22,533
26,079
2.4
2.4
12.0
20.9
11.8
6.8
0.8
0.7
6.6
11.0
-
-
Canara Bank
Neutral
315
-
18,803
17,925
20,235
2.0
2.1
18.5
36.5
17.0
8.6
0.6
0.6
3.4
6.2
-
-
Can Fin Homes
Neutral
2,667
-
7,099
586
741
3.5
3.5
107.8
141.0
24.7
18.9
5.4
4.4
24.1
25.6
-
-
Cholamandalam Inv. &
Accumulate
1,120
1,230
17,509
2,826
3,307
6.3
6.3
53.7
64.6
20.9
17.4
3.6
3.0
18.3
18.9
-
-
Fin. Co.
Dewan Housing Finance Accumulate
545
610
17,079
2,676
3,383
2.4
2.7
37.4
49.7
14.6
11.0
1.9
1.7
13.8
16.2
-
-
Equitas Holdings
Buy
154
235
5,231
1,125
1,380
9.6
9.8
1.5
6.0
102.9
25.7
2.3
2.2
2.4
8.2
-
-
Federal Bank
Accumulate
117
125
22,792
4,896
5,930
2.8
3.1
5.4
7.6
21.8
15.5
1.9
1.7
8.5
11.0
-
-
Stock Watch
October 10, 2017
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 )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Financials
GIC Housing
Buy
516
655
2,777
376
477
3.6
3.7
33.0
40.0
15.6
12.9
2.8
2.4
20.0
23.0
-
-
HDFC Bank
Neutral
1,795
-
463,347
55,236
63,253
4.5
4.4
68.9
82.4
26.1
21.8
4.5
3.8
18.7
18.5
-
-
ICICI Bank
Buy
272
315
174,423
42,361
51,378
3.6
3.9
18.4
25.7
14.8
10.6
1.6
1.6
11.3
15.0
-
-
Karur Vysya Bank
Buy
145
180
8,790
3,289
3,630
3.7
3.9
10.8
14.1
13.4
10.3
1.6
1.4
12.5
14.7
-
-
LIC Housing Finance
Neutral
666
-
33,613
4,895
6,332
3.4
3.7
50.7
66.8
13.1
10.0
2.6
2.2
21.7
23.8
-
-
Punjab Natl.Bank
Neutral
137
-
29,153
23,708
25,758
2.1
2.1
5.9
16.4
23.3
8.4
0.7
0.7
3.0
8.3
-
-
RBL Bank
Neutral
518
-
21,407
2,309
2,888
2.6
2.5
16.4
19.1
31.7
27.2
4.0
3.5
13.3
13.8
-
-
Repco Home Finance
Buy
645
825
4,034
496
597
4.4
4.2
38.5
48.7
16.8
13.2
3.0
2.5
19.6
20.6
-
-
South Ind.Bank
Neutral
32
-
5,783
3,195
3,567
3.0
3.1
3.0
3.8
10.6
8.4
1.1
0.9
10.5
11.9
-
-
St Bk of India
Neutral
257
-
221,412
105,827
121,056
2.4
2.5
16.1
25.6
15.9
10.0
1.3
1.1
6.6
9.9
-
-
Union Bank
Neutral
131
-
9,534
14,650
16,225
2.3
2.3
23.1
32.5
5.7
4.0
0.4
0.4
7.1
9.2
-
-
Yes Bank
Neutral
371
-
84,998
11,088
13,138
3.0
2.9
84.0
99.3
4.4
3.7
0.7
0.6
16.3
16.8
-
-
FMCG
Akzo Nobel India
Neutral
1,849
-
8,870
3,164
3,607
13.8
13.7
58.6
67.9
31.6
27.2
7.8
6.8
24.5
25.1
2.7
2.3
Asian Paints
Neutral
1,159
-
111,205
17,603
20,615
18.6
18.6
2,128.9
2,543.3
0.5
0.5
11.5
9.7
28.0
28.9
6.1
5.2
Britannia
Neutral
4,343
-
52,145
9,690
11,278
14.8
15.4
84.0
101.0
51.7
43.0
18.8
15.0
40.6
39.0
5.3
4.6
Colgate
Neutral
1,091
-
29,661
4,420
5,074
24.9
25.3
28.6
32.8
38.1
33.3
15.0
12.1
43.8
40.5
6.5
5.6
Dabur India
Neutral
317
-
55,779
8,346
9,344
19.6
19.9
7.8
9.0
40.6
35.2
8.2
7.4
25.2
24.8
6.3
5.5
GlaxoSmith Con*
Neutral
4,998
-
21,020
5,072
5,760
18.2
18.4
176.3
199.2
28.4
25.1
6.0
5.4
21.2
21.7
3.5
3.0
Godrej Consumer
Neutral
978
-
66,641
10,171
11,682
20.8
21.5
21.7
27.1
45.1
36.1
10.1
8.7
22.3
23.4
6.7
5.8
HUL
Neutral
1,220
-
264,099
37,077
41,508
20.3
21.8
5,189.9
6,318.5
0.2
0.2
37.2
31.8
74.8
82.0
7.0
6.2
ITC
Neutral
268
-
326,432
44,588
49,853
37.0
37.3
9.6
11.0
27.9
24.4
6.9
6.5
25.1
27.3
6.8
6.1
Marico
Neutral
314
-
40,495
6,788
7,766
18.5
19.2
7.1
8.5
44.2
36.9
15.5
13.2
36.9
38.0
5.8
5.1
Nestle*
Neutral
7,291
-
70,297
10,083
11,182
20.0
20.9
119.7
141.3
60.9
51.6
214.7
196.2
36.7
39.8
6.7
5.9
Tata Global
Neutral
208
-
13,146
7,121
7,641
11.9
12.3
6.9
8.0
30.2
26.0
2.0
1.9
6.8
7.2
1.6
1.5
Procter & Gamble
Neutral
8,583
-
27,862
3,034
3,579
27.1
27.7
167.7
198.8
51.2
43.2
13.7
11.8
28.8
29.5
8.6
7.2
Hygiene
IT
HCL Tech^
Accumulate
902
1,014
128,721
52,342
57,053
20.9
20.9
62.8
67.6
14.4
13.3
3.2
2.8
22.4
20.6
2.1
1.8
Infosys
Buy
924
1,179
212,159
73,963
80,619
26.0
26.0
64.4
69.3
14.3
13.3
2.8
2.6
19.7
19.6
2.3
2.1
TCS
Accumulate
2,453
2,651
483,257
127,403
138,870
27.6
27.6
144.5
156.0
17.0
15.7
5.1
4.7
29.7
29.8
3.5
3.1
Tech Mahindra
Accumulate
464
533
45,233
31,015
33,496
15.0
15.0
35.6
38.1
13.0
12.2
2.2
2.1
17.0
16.3
1.2
1.1
Stock Watch
October 10, 2017
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 )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
IT
Wipro
Neutral
287
-
139,455
58,536
61,858
20.3
20.3
18.2
19.1
15.7
15.0
2.5
2.1
14.6
13.4
2.3
2.2
Media
D B Corp
Neutral
380
-
6,981
2,404
2,625
30.5
31.5
23.7
26.9
16.0
14.1
3.8
3.2
23.5
22.8
2.7
2.5
HT Media
Neutral
97
-
2,255
2,589
2,830
15.1
15.4
8.3
10.9
11.7
8.9
0.9
0.9
8.4
10.4
0.4
0.3
Jagran Prakashan
Buy
180
225
5,888
2,541
2,835
28.5
28.7
12.7
14.1
14.2
12.8
2.9
2.5
21.3
21.4
2.2
1.9
Sun TV Network
Neutral
794
-
31,298
3,238
3,789
51.9
55.1
30.9
38.0
25.7
20.9
7.3
6.4
30.0
31.0
9.2
7.7
Hindustan Media
Neutral
247
-
1,812
1,002
1,074
23.3
23.5
29.2
33.8
8.5
7.3
1.3
1.1
15.6
15.4
0.8
0.5
Ventures
TV Today Network
Accumulate
385
435
2,299
667
727
27.7
27.7
18.6
20.1
20.7
19.2
3.2
3.3
15.6
17.3
3.0
2.8
Music Broadcast Limited Accumulate
397
434
2,266
271
317
91.0
109.0
6.0
10.0
66.2
39.7
4.1
3.8
6.5
9.3
8.0
6.6
Metals & Mining
Coal India
Neutral
281
-
174,708
82,301
91,235
17.0
18.0
17.1
20.5
16.5
13.7
3.1
2.9
45.0
55.0
1.8
1.6
Hind. Zinc
Neutral
317
-
133,858
22,108
24,555
57.0
58.0
22.1
26.3
14.3
12.1
4.7
3.8
32.0
35.0
5.1
4.2
Hindalco
Neutral
250
-
55,989
102,350
105,355
13.5
14.5
21.5
24.5
11.6
10.2
1.6
1.4
15.0
15.2
1.1
1.1
JSW Steel
Neutral
258
-
62,243
64,500
68,245
21.1
21.5
20.1
21.2
12.8
12.2
2.3
2.0
-
-
1.7
1.6
NMDC
Neutral
121
-
38,346
10,209
11,450
47.0
48.0
11.1
12.1
10.9
10.0
1.5
1.4
-
-
3.3
3.0
SAIL
Neutral
57
-
23,438
54,100
63,555
3.0
10.0
(10.0)
1.5
37.8
0.8
0.8
-
-
1.4
1.2
Vedanta
Neutral
324
-
120,437
81,206
87,345
28.0
29.0
26.5
33.5
12.2
9.7
2.8
2.4
-
-
2.2
1.9
Tata Steel
Neutral
697
-
67,708
121,445
126,500
16.2
17.2
65.4
81.3
10.7
8.6
1.7
1.4
-
-
1.1
1.0
Oil & Gas
GAIL
Neutral
446
-
75,348
53,115
52,344
14.2
15.3
30.0
31.1
14.9
14.3
1.9
1.7
-
-
1.1
1.1
ONGC
Neutral
171
-
219,384
83,111
84,934
44.2
44.9
16.4
16.9
10.4
10.1
1.3
1.2
-
-
2.5
2.5
Indian Oil Corp
Neutral
414
-
201,107
396,116
432,560
8.5
8.8
40.1
42.2
10.3
9.8
1.8
1.6
-
-
0.7
0.6
Reliance Industries
Neutral
831
-
540,303
257,711
267,438
17.0
18.2
89.1
89.5
9.3
9.3
0.9
0.8
-
-
1.8
1.7
Pharmaceuticals
Alembic Pharma
Buy
502
600
9,472
3,903
4,584
18.2
19.2
21.8
27.2
23.1
18.5
4.2
3.5
19.8
20.6
2.4
2.1
Alkem Laboratories Ltd
Accumulate
1,878
2,079
22,455
6,320
7,341
17.5
19.8
72.7
96.6
25.8
19.4
4.6
3.9
16.7
18.7
3.5
2.9
Aurobindo Pharma
Accumulate
730
823
42,787
17,086
19,478
22.1
22.0
44.7
51.4
16.3
14.2
3.6
2.9
24.7
22.7
2.6
2.3
Aventis*
Neutral
4,051
-
9,330
2,508
2,862
16.8
16.8
139.9
153.8
29.0
26.3
4.2
3.4
23.5
25.8
3.3
2.7
Cadila Healthcare
Reduce
496
426
50,788
11,584
13,228
20.3
20.4
18.7
21.3
26.5
23.3
5.9
4.8
24.6
22.9
4.2
3.6
Cipla
Sell
585
458
47,110
16,619
19,437
15.4
16.2
19.7
24.3
29.7
24.1
3.4
3.0
12.0
13.2
3.0
2.5
Dr Reddy's
Neutral
2,410
-
39,952
15,844
17,973
17.6
18.2
91.7
111.0
26.3
21.7
3.0
2.7
11.9
13.0
2.7
2.4
GSK Pharma*
Neutral
2,403
-
20,357
3,260
3,651
15.0
18.0
46.1
58.6
52.1
41.0
10.7
11.0
20.0
26.5
6.1
5.6
Indoco Remedies
Sell
231
153
2,125
1,154
1,310
14.9
14.9
11.3
12.7
20.4
18.2
2.9
2.6
15.0
15.0
2.0
1.7
Stock Watch
October 10, 2017
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 )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Pharmaceuticals
Ipca labs
Neutral
526
-
6,634
3,593
4,022
14.5
15.5
19.4
25.2
27.1
20.9
2.5
2.2
9.5
11.2
1.9
1.7
Lupin
Buy
1,040
1,467
46,978
18,657
21,289
21.3
23.3
52.8
66.7
19.7
15.6
3.0
2.5
16.3
17.5
2.5
2.1
Natco Pharma
Accumulate
987
1,057
17,201
1,886
2,016
32.3
29.5
23.2
22.0
42.6
44.8
8.9
7.9
20.9
17.6
9.0
8.4
Sun Pharma
Accumulate
530
558
127,148
32,899
36,451
26.9
25.4
31.6
32.3
16.8
16.4
3.0
2.6
18.7
18.8
3.5
3.0
Syngene International
Accumulate
488
557
9,768
1,402
1,823
32.8
36.0
15.9
20.7
30.8
23.6
5.7
4.7
18.7
20.0
6.9
5.3
Power
Tata Power
Neutral
81
-
22,030
32,547
33,806
20.5
20.5
4.7
5.4
17.3
15.2
1.7
1.4
10.5
10.5
1.7
1.6
NTPC
Neutral
174
-
143,677
86,070
101,246
28.3
30.7
12.9
16.2
13.5
10.8
1.4
1.3
10.6
12.4
3.0
2.7
Power Grid
Accumulate
201
223
105,338
29,183
32,946
89.7
90.0
18.0
20.8
11.2
9.7
1.9
1.7
17.7
18.2
7.5
7.0
Real Estate
Prestige Estate
Neutral
300
-
11,250
4,607
5,146
21.0
22.2
7.9
9.8
38.0
30.6
2.3
2.2
10.3
12.0
3.6
3.3
MLIFE
Accumulate
468
522
2,402
487
590
12.3
17.8
21.0
31.2
22.3
15.0
1.2
1.1
5.2
7.4
3.6
3.0
Telecom
Bharti Airtel
Neutral
379
-
151,661
97,903
105,233
36.0
36.3
9.3
11.1
40.8
34.3
2.0
1.9
5.0
5.6
2.5
2.3
Idea Cellular
Neutral
74
-
26,781
35,012
37,689
27.1
27.7
(4.4)
(2.7)
1.2
1.2
(6.8)
(4.6)
2.1
1.9
zOthers
Abbott India
Neutral
4,119
-
8,752
3,244
3,723
14.9
16.1
167.5
209.4
24.6
19.7
5.4
4.5
23.7
24.8
2.3
2.0
Asian Granito
Buy
494
570
1,487
1,169
1,286
12.5
12.5
16.0
19.7
30.9
25.1
3.3
2.9
10.7
11.6
1.5
1.3
Bajaj Electricals
Neutral
391
-
3,967
4,646
5,301
6.7
7.6
16.1
22.3
24.3
17.5
4.0
3.4
16.4
19.2
0.8
0.8
Banco Products (India)
Neutral
212
-
1,517
1,530
1,695
13.2
12.7
19.0
20.0
11.2
10.6
1.8
1.6
0.2
0.2
0.9
100.0
Coffee Day Enterprises
Neutral
215
-
4,435
3,494
3,913
17.4
18.0
4.8
5.7
-
37.8
1.9
1.8
-
0.1
1.7
1.5
Ltd
Elecon Engineering
Neutral
63
-
705
171
201
15.0
16.2
36.0
43.0
1.8
1.5
0.2
0.1
0.1
0.1
3.5
3.0
Garware Wall Ropes
Neutral
925
-
2,023
928
1,003
15.2
15.2
39.4
43.2
23.4
21.4
3.9
3.3
16.5
15.4
2.0
1.8
Goodyear India*
Neutral
818
-
1,886
1,717
1,866
11.8
12.3
47.9
49.8
17.1
16.4
2.6
2.3
15.6
15.7
0.8
113.6
Hitachi
Neutral
2,027
-
5,510
2,355
2,715
10.3
10.8
49.0
60.9
41.4
33.3
9.7
7.7
0.2
0.2
2.4
2.0
HSIL
Neutral
415
-
3,003
2,240
2,670
14.6
15.0
17.0
22.0
24.4
18.9
2.0
1.9
0.1
0.1
1.6
1.3
Interglobe Aviation
Neutral
1,101
-
39,834
22,570
27,955
14.2
15.0
63.6
81.8
17.3
13.5
9.1
7.7
0.5
0.6
1.4
1.1
Jyothy Laboratories
Neutral
402
-
7,298
1,781
2,044
14.1
15.0
9.4
10.5
43.0
38.3
9.1
8.6
0.2
0.2
4.3
3.7
Linc Pen & Plastics
Neutral
243
-
359
420
462
9.3
9.3
15.3
17.1
15.9
14.2
2.7
2.8
16.9
19.5
0.9
0.8
M M Forgings
Neutral
776
-
937
542
642
20.1
21.0
41.6
56.8
18.7
13.7
2.6
2.2
0.1
0.2
2.1
1.9
Mirza International
Neutral
164
-
1,974
1,148
1,285
18.0
18.0
8.0
9.4
20.4
17.5
3.4
2.9
16.3
16.1
1.9
1.6
Navkar Corporation
Buy
184
265
2,630
561
617
41.5
41.5
11.5
12.7
16.0
14.5
1.7
1.5
10.5
10.4
5.4
4.7
Nilkamal
Neutral
1,570
-
2,343
2,317
2,525
11.4
11.1
96.0
105.0
16.4
15.0
2.8
2.4
0.2
0.2
1.0
0.9
Stock Watch
October 10, 2017
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 )
FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E
zOthers
Parag Milk Foods
Neutral
257
-
2,160
1,987
2,379
7.6
9.0
12.4
18.3
20.7
14.0
2.9
2.6
8.2
13.2
1.2
1.0
Radico Khaitan
Neutral
175
-
2,330
1,811
1,992
13.2
13.2
8.1
8.8
21.6
19.9
2.2
2.4
10.1
12.0
1.6
1.5
Relaxo Footwears
Neutral
526
-
6,315
1,981
2,310
13.7
14.5
12.0
15.5
43.8
33.9
8.5
6.9
0.2
0.2
3.3
2.8
Siyaram Silk Mills
Accumulate
2,585
2,782
2,423
1,769
1,981
12.7
12.7
113.1
131.1
22.9
19.7
3.5
3.1
15.5
15.5
1.5
1.4
Styrolution ABS India* Neutral
1,020
-
1,793
1,800
1,980
8.0
8.1
42.0
46.2
24.3
22.1
2.7
2.4
0.1
0.1
1.1
1.0
Surya Roshni
Neutral
314
-
1,375
4,870
5,320
7.7
7.8
22.8
28.1
13.8
11.2
1.8
1.6
0.1
0.1
0.5
0.4
TVS Srichakra
Neutral
3,033
-
2,322
2,729
2,893
12.7
12.5
248.5
265.0
12.2
11.4
3.5
2.8
0.3
0.3
0.9
0.8
Visaka Industries
Neutral
706
-
1,121
1,104
1,214
12.1
12.6
31.0
37.9
22.8
18.6
2.8
2.5
0.1
0.1
1.2
1.1
VIP Industries
Accumulate
265
300
3,741
1,450
1,693
10.4
10.5
6.5
7.8
40.5
33.9
8.6
7.5
21.1
22.1
2.6
2.2
Navin Fluorine
Neutral
746
-
3,677
945
1,154
22.4
22.6
28.7
34.8
26.0
21.5
4.3
3.7
-
-
3.4
2.7
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 09, 2017
Market Outlook
October 10, 2017
Research Team Tel: 022 - 39357800
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