Market Outlook

October 11, 2017

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian markets are likely to open positive tracking global indices and SGX Nifty.

BSE Sensex

0.2

31,924

Nifty

0.3

10,017

U.S. stocks continued to remain directionless ahead of the Federal Reserve monetary

policy meeting on Wednesday. Investors stayed on the sidelines as earnings from

Mid Cap

0.6

102

15,936

major financial institutions and major economic data are expected in the next few

Small Cap

1.0

159

16,893

days.

Bankex

0.3

27,388

UK stocks posted a gain for the session as the pound rallied strongly. UK PM

Global Indices

Chg (%)

(Pts)

(Close)

Theresa May said that if talks with the EU fail then they would prepare for a ‘no-

deal’ Brexit. British industrial production grew 0.2 percent MoM in August. This is the

Dow Jones

0.3

170

22,831

fifth successive monthly rise for industrial production.

Nasdaq

0.1

6,587

FTSE

0.4

7,538

Indian Markets closed in positive territory as expectations regarding second quarter

Nikkei

(00.6

133

20,824

results helped market sentiment. The IT index posted gains for the session and

closed up 0.7 percent. The FMCG index closed slightly down by 0.2 percent on news

Hang Seng

0.6

164

28,491

that GST rollout might depress Q2 earnings for the sector.

Shanghai Com

0.3

3,383

News Analysis

Advances / Declines

BSE

NSE

 Piramal Enterprises to invest `360cr to upgrade API plants

Advances

1,580

1,025

Detailed analysis is on Pg2

Declines

1,174

703

Unchanged

114

Investor’s Ready Reckoner

Key Domestic & Global Indicator

Volumes (` Cr)

Stock Watch: Latest investment recommendations on 150+ stocks

BSE

3,898

Refer Pg7 onwards

NSE

26,367

Top Picks

CMP

Target

Upside

Company

Sector

Rating

#Net Inflows (` Cr)

Net

Mtd

Ytd

(`)

(%)

Blue Star

Capital Goods Accumulate

812

867

6.8

FII

(5(439)

(2(3,021)

4133,50

Dewan Housing FinanceFinancials

Accumulate

552

610

10.6

MFs

1,156

4,3,611

1489,95

Asian Granito

Other

Buy

496

570

15.0

Navkar Corporation

Other

Buy

187

265

41.7

Top Gainer

Price (`)

Chg (%)

KEI Industries

Capital Goods

Accumulate

352

380

7.9

More Top Picks on Pg5

Jmfinancil

178

14.9

Adanitrans

193

10.0

Key Upcoming Events

Consensus

Religare

9.9

Date

Region

Event Description

Reading

Expectations

Strtech

243

9.6

Oct12, 2017 US

Initial Jobless claims

260.00

250.00

Ghcl

236

7.9

Oct12, 2017 India

Industrial Production YoY

1.20

Oct12, 2017 US

Producer Price Index (mom)

0.50

Oct13, 2017 India

Imports YoY%

21.00

Top Loser

Price (`)

Chg (%)

Oct13, 2017 China

Exports YoY%

5.60

10.00

Southbank

230

(6.2)

More Events on Pg7

Sobha

437

(4.9)

Pcjeweller

364

(4.1)

Welspunind

(3.3)

Aegislog

229

(2.8)

#as on 10^th Oct, 2017

www.angelbroking.com

Market Outlook

October 11, 2017

News Analysis

Piramal Enterprises to invest `360cr to upgrade API plants

Piramal Enterprises has invested around

`360 crore to upgrade its active

pharmaceutical ingredient (API) manufacturing plants in India and the US. The

company plans to use this investment to boost to its contract manufacturing

business.

Healthcare is the largest segment of the company and contributed around 47

percent of the company's FY

17 revenue. Within healthcare, contract

manufacturing is the largest division accounts for 60 percent of the segment

revenue. The company has five manufacturing sites in India, the US and Europe.

Over the last two years, the company had acquired two contract-manufacturing

companies in the US that were engaged in development of sterile injectables and

high potency anti-cancer agents to grow its business.

Economic and Political News

 Gujarat elections to be held in December: Election Commission

 Non-life insurers premium collection at `17,530cr in September 2017, up

14% YoY: Irdai

 Insolvency and Bankruptcy Board of India publishes draft rules on insolvency

resolution process for individual businesses

Corporate News

 Allahabad Bank plans capital raise of up to `2,000cr

 Coal India workers to get 20% wage hike, new pension fund norms and

medical trust

 VA Tech Wabag files appeal against National Company Law Tribunal order

 M&M to sell petrol and electric cars; will launch electric version of KUV1OO in

2018

www.angelbroking.com

Market Outlook

October 11, 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

22,105

1,849

2,079

12.5

more products in USA, which bodes for its international

business.

We expect the company would report strong profitability

Asian Granito

1,492

496

570

15.0

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

7,771

812

867

6.8

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

17,294

552

610

10.6

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

8,835

146

180

23.1

Increasing share of CASA will help in NIM

improvement.

High order book execution in EPC segment, rising B2C

KEI Industries

2,739

352

380

7.9

sales and higher exports to boost the revenues and

profitability

Expected to benefit from the lower capex requirement

Music Broadcast

2,309

405

434

7.2

and 15 year long radio broadcast licensing.

Massive capacity expansion along with rail advantage

Navkar Corporation

2,667

187

265

41.7

at ICD as well CFS augur well for the company

Strong brands and distribution network would boost

Siyaram Silk Mills

2,489

2,655

2,856

7.6

growth going ahead. Stock currently trades at an

inexpensive valuation.

Market leaderhip in Hindi news genre and no.

viewe`hip ranking in English news genre, exit from the

TV Today Network

2,323

389

435

11.7

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

2,38,575

7,898

8,658

9.6

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

2,768

514

655

27.4

year; change in borrowing mix will help in NIM

improvement..

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

October 11, 2017

Key Upcoming Events

Global economic events release calendar

Bloomberg Data

Date

Time

Country

Event Description

Unit

Period

Last Reported

Estimated

Oct 12, 2017

6:00 PMUS

Initial Jobless claims

Thousands

Oct 7

260.00

250.00

5:30 PMIndia

Industrial Production YoY

% Change

Aug

1.20

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

10.00

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

1,170.00

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

6.40

7:30 PMUS

Existing home sales

Million

Sep

5.35

5.30

Oct 20, 2017

7:30 AMChina

Real GDP (YoY)

% Change

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

Oct 26, 2017

5:15 PMEuro Zone

ECB announces interest rates

Oct 26

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

October 11, 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

3.0

2.4

5.7

6.0

2.0

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

3.2

50.0

3.5

3.0

48.0

2.4

2.2

2.5

46.0

2.0

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

www.angelbroking.com

Market Outlook

October 11, 2017

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

76,897

5.2

20.5

26.8

Russia

Micex

2,087

2.7

6.8

4.7

India

Nifty

10,017

0.9

3.6

14.6

China

Shanghai Composite

3,383

0.2

5.4

13.6

South Africa

Top 40

51,363

3.9

11.7

14.0

Mexico

Mexbol

49,983

(0.2)

(1.6)

4.3

Indonesia

LQ45

983

0.3

1.3

5.9

Malaysia

KLCI

1,761

(1.2)

(0.5)

6.6

Thailand

SET 50

1,092

4.4

10.0

13.3

USA

Dow Jones

22,831

4.7

6.6

25.9

FTSE

7,538

2.2

2.8

7.3

Japan

Nikkei

20,824

7.6

4.1

25.5

Germany

DAX

12,949

5.3

4.1

22.4

France

CAC

5,364

4.9

2.7

19.0

Source: Bloomberg, Angel Research, data as of 10^th Oct-17 p68in4

www.angelbroking.com

Stock Watch

October 11, 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

237

209

4,610

1,873

2,099

15.0

9.5

10.5

25.0

22.6

3.8

3.4

15.8

16.0

2.4

2.1

United Phosphorus

Neutral

820

41,636

18,922

21,949

18.0

18.5

36.2

45.6

22.6

18.0

4.7

3.9

22.7

23.8

2.4

2.0

Auto & Auto Ancillary

Ashok Leyland

Neutral

126

36,977

23,339

27,240

10.1

10.8

4.7

6.2

27.2

20.3

5.4

4.8

20.0

23.6

1.5

1.3

Bajaj Auto

Neutral

3,135

90,714

23,936

27,955

19.5

20.1

142.7

167.3

22.0

18.7

4.8

4.3

21.8

22.8

3.4

2.8

Bharat Forge

Buy

653

875

30,394

7,637

8,755

21.7

23.2

36.1

47.3

18.1

13.8

3.2

2.8

18.5

20.8

3.8

3.3

Eicher Motors

Neutral

31,545

85,874

19,043

22,837

19.5

19.9

835.4

1,019.0

37.8

31.0

14.1

10.9

40.9

37.8

4.4

3.6

Gabriel India

Neutral

199

2,853

1,782

2,033

9.7

10.2

7.1

8.9

28.0

22.4

5.7

4.8

21.0

22.2

1.6

1.3

Hero Motocorp

Accumulate

3,692

4,129

73,736

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

2,369

1,441

1,662

14.4

14.8

13.9

17.6

4.3

3.4

1.2

1.0

30.0

31.0

1.6

1.4

Mahindra and Mahindra Neutral

1,303

80,916

46,971

53,816

13.6

14.0

67.7

79.8

19.2

16.3

2.8

2.5

15.0

15.9

1.6

1.4

Maruti

Accumulate

7,898

8,658

238,575

81,825

101,245

15.0

283.5

356.0

27.9

22.2

6.1

5.0

21.9

22.4

2.6

2.0

Minda Industries

Neutral

818

7,072

4,328

5,084

11.0

11.9

27.3

36.4

30.0

22.5

6.4

5.0

23.1

25.6

1.7

1.5

Motherson Sumi

Neutral

347

72,955

55,937

64,445

10.8

11.4

16.9

21.1

20.5

16.5

4.6

4.7

25.2

25.4

1.4

1.1

Tata Motors

Neutral

424

122,366

303,167

343,649

11.8

13.8

33.1

54.7

12.8

7.8

2.1

1.7

16.9

23.0

0.5

0.4

TVS Motor

Neutral

686

32,581

13,992

16,216

9.0

9.4

17.1

20.3

40.2

33.8

10.7

8.3

29.7

27.7

2.3

1.9

Amara Raja Batteries

Buy

690

858

11,788

6,140

7,122

14.3

15.6

29.3

39.0

23.6

17.7

4.0

3.4

17.1

19.0

1.9

1.6

Exide Industries

Neutral

208

17,676

8,689

9,854

15.1

15.2

9.7

11.0

21.6

18.9

3.8

3.4

15.7

16.1

1.8

1.5

Apollo Tyres

Neutral

242

12,329

15,739

17,326

13.3

14.6

20.4

26.7

11.9

9.1

1.4

1.3

20.4

26.7

1.0

0.9

Ceat

Neutral

1,755

7,100

6,661

7,717

11.1

14.2

116.2

178.2

15.1

9.9

2.6

2.2

15.2

21.3

1.2

1.0

JK Tyres

Neutral

152

3,456

8,318

9,239

16.2

16.4

21.0

27.5

7.3

5.5

1.4

1.2

19.1

20.4

0.9

0.7

Swaraj Engines

Neutral

2,150

2,671

788

889

16.4

16.5

71.6

81.0

30.0

26.6

8.7

8.0

29.6

31.0

3.0

2.6

Subros

Neutral

252

1,514

1,855

2,135

11.6

11.8

10.3

14.7

24.6

17.2

3.7

3.2

15.8

19.1

1.0

0.9

Capital Goods

BEML

Neutral

1,730

7,204

4,286

5,194

7.1

8.2

42.9

58.1

40.3

29.8

3.3

3.0

7.6

8.7

1.7

1.4

Bharat Electronics

Neutral

165

40,602

10,258

12,470

19.6

19.5

7.3

8.6

22.6

19.2

0.4

20.4

21.9

3.5

2.8

Voltas

Neutral

528

17,484

6,778

8,004

9.6

11.0

17.1

22.4

30.9

23.6

7.4

6.5

17.7

19.8

2.3

1.9

BHEL

Neutral

31,813

33,200

39,167

6.8

9.5

6.2

11.2

14.0

7.7

0.6

4.6

8.0

0.5

0.4

Blue Star

Accumulate

812

867

7,771

5,220

6,207

6.3

6.6

16.8

22.3

48.3

36.4

9.6

8.5

19.9

23.3

1.5

1.2

CG Power and Industrial

Neutral

4,986

6,555

7,292

7.5

0.8

7,955.0

99.4

1.2

0.1

1.2

0.9

0.8

Solutions

Greaves Cotton

Neutral

135

3,296

1,778

1,993

14.7

15.1

8.1

9.1

16.7

14.8

3.7

3.5

21.8

23.6

1.6

1.4

www.angelbroking.com

Stock Watch

October 11, 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

304

350

7,823

9,779

11,113

9.4

9.8

14.2

18.2

21.4

16.7

4.1

3.4

21.1

22.1

1.1

0.9

KEI Industries

Accumulate

352

380

2,739

3,001

3,391

10.0

13.0

16.1

27.1

21.9

4.9

4.1

18.2

18.7

1.1

1.0

Thermax

Neutral

916

10,915

4,125

4,747

10.3

10.8

26.7

31.5

34.3

29.1

3.8

3.5

11.2

12.0

2.4

2.1

VATech Wabag

Buy

578

681

3,156

3,867

4,126

9.6

10.0

34.9

39.8

16.6

14.5

2.7

2.4

17.7

17.5

0.8

Cement

ACC

Neutral

1,733

32,537

12,255

13,350

13.5

14.3

58.0

66.2

29.9

26.2

3.5

3.3

11.5

12.2

2.6

2.4

Ambuja Cements

Neutral

278

55,201

10,250

11,450

17.5

19.0

7.2

8.3

38.6

33.5

2.8

2.6

7.0

7.8

5.2

4.6

India Cements

Neutral

184

5,659

6,135

6,750

14.8

15.2

8.5

11.5

21.6

16.0

1.1

1.0

4.8

6.2

1.3

1.1

JK Cement

Neutral

975

6,819

4,150

4,775

19.2

20.0

49.0

63.5

19.9

15.4

3.2

2.7

17.0

18.5

2.1

1.8

J K Lakshmi Cement

Neutral

388

4,570

3,422

3,757

15.5

17.0

13.5

23.2

28.8

16.7

3.0

2.6

10.8

15.5

1.7

1.5

Orient Cement

Neutral

155

3,174

2,215

3,233

16.8

17.0

5.9

6.9

26.3

22.5

2.0

1.9

10.8

10.1

2.4

1.6

UltraTech Cement

Neutral

3,963

108,802

28,250

35,150

20.2

23.5

77.5

122.2

51.1

32.4

4.3

3.9

9.6

14.8

4.3

3.5

Construction

KNR Constructions

Neutral

209

2,936

1,846

2,203

14.5

12.1

13.7

17.3

15.3

0.9

0.8

17.5

16.7

1.6

1.4

Larsen & Toubro

Neutral

1,143

160,054

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

144

6,945

739

842

61.6

62.7

5.1

6.2

28.2

23.4

3.5

3.4

12.7

14.9

8.9

7.7

PNC Infratech

Neutral

148

3,787

2,040

2,935

13.0

6.4

9.0

23.1

16.4

0.6

0.5

9.7

12.2

1.9

1.3

Simplex Infra

Neutral

494

2,446

6,012

6,619

11.6

11.7

21.1

31.0

23.5

16.0

1.6

1.5

6.5

8.6

0.9

0.8

Sadbhav Engineering

Accumulate

280

298

4,801

3,823

4,426

10.7

10.8

10.3

11.8

27.2

23.7

3.3

2.9

10.1

10.5

1.6

1.4

NBCC

Neutral

220

19,805

9,099

12,706

6.4

7.3

9.6

30.2

23.0

1.3

1.1

27.5

30.5

2.0

1.5

MEP Infra

Neutral

100

1,618

2,403

2,910

18.3

16.8

2.4

6.1

42.3

16.4

16.1

10.8

35.2

55.8

1.8

1.5

SIPL

Neutral

100

3,510

2,060

2,390

46.8

47.7

(5.8)

(3.1)

3.7

4.3

(14.2)

(2.3)

6.5

6.0

Engineers India

Neutral

150

10,105

1,795

2,611

21.1

22.4

5.9

8.1

25.4

18.5

1.8

12.9

16.1

4.0

2.6

Financials

Axis Bank

Accumulate

514

580

123,224

32,558

35,843

3.5

3.2

27.8

41.0

18.5

12.5

2.0

1.8

11.4

14.9

Bank of Baroda

Neutral

142

32,627

22,533

26,079

2.4

12.0

20.9

11.8

6.8

0.8

0.7

6.6

11.0

Canara Bank

Neutral

315

18,797

17,925

20,235

2.0

2.1

18.5

36.5

17.0

8.6

0.6

3.4

6.2

Can Fin Homes

Neutral

2,624

6,986

586

741

3.5

107.8

141.0

24.3

18.6

5.3

4.3

24.1

25.6

Cholamandalam Inv. &

Accumulate

1,121

1,230

17,519

2,826

3,307

6.3

53.7

64.6

20.9

17.4

3.6

3.0

18.3

18.9

Fin. Co.

Dewan Housing Finance Accumulate

552

610

17,294

2,676

3,383

2.4

2.7

37.4

49.7

14.8

11.1

1.9

1.7

13.8

16.2

Equitas Holdings

Buy

154

235

5,228

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

118

125

22,996

4,896

5,930

2.8

3.1

5.4

7.6

22.0

15.6

1.9

1.7

8.5

11.0

www.angelbroking.com

Stock Watch

October 11, 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

514

655

2,768

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

1,803

465,335

55,236

63,253

4.5

4.4

68.9

82.4

26.2

21.9

4.6

3.8

18.7

18.5

ICICI Bank

Buy

269

315

172,755

42,361

51,378

3.6

3.9

18.4

25.7

14.7

10.5

1.6

1.5

11.3

15.0

Karur Vysya Bank

Buy

146

180

8,835

3,289

3,630

3.7

3.9

10.8

14.1

13.5

10.4

1.6

1.4

12.5

14.7

LIC Housing Finance

Neutral

662

33,416

4,895

6,332

3.4

3.7

50.7

66.8

13.1

9.9

2.6

2.2

21.7

23.8

Punjab Natl.Bank

Neutral

137

29,132

23,708

25,758

2.1

5.9

16.4

23.3

8.3

0.7

3.0

8.3

RBL Bank

Neutral

517

21,376

2,309

2,888

2.6

2.5

16.4

19.1

31.6

27.1

4.0

3.5

13.3

13.8

Repco Home Finance

Buy

659

825

4,120

496

597

4.4

4.2

38.5

48.7

17.1

13.5

3.1

2.5

19.6

20.6

South Ind.Bank

Neutral

5,422

3,195

3,567

3.0

3.1

3.0

3.8

10.0

7.8

1.0

0.9

10.5

11.9

St Bk of India

Neutral

257

221,542

105,827

121,056

2.4

2.5

16.1

25.6

16.0

10.0

1.3

1.1

6.6

9.9

Union Bank

Neutral

132

9,556

14,650

16,225

2.3

23.1

32.5

5.7

4.1

0.4

7.1

9.2

Yes Bank

Neutral

373

85,330

11,088

13,138

3.0

2.9

84.0

99.3

4.4

3.8

0.7

0.6

16.3

16.8

FMCG

Akzo Nobel India

Neutral

1,839

8,818

3,164

3,607

13.8

13.7

58.6

67.9

31.4

27.1

7.7

6.8

24.5

25.1

2.6

2.3

Asian Paints

Neutral

1,162

111,502

17,603

20,615

18.6

2,128.9

2,543.3

0.6

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

1,089

29,621

4,420

5,074

24.9

25.3

28.6

32.8

38.1

33.2

15.0

12.1

43.8

40.5

6.4

5.6

Dabur India

Neutral

316

55,735

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

4,990

20,988

5,072

5,760

18.2

18.4

176.3

199.2

28.3

25.1

6.0

5.4

21.2

21.7

3.5

3.0

Godrej Consumer

Neutral

992

67,608

10,171

11,682

20.8

21.5

21.7

27.1

45.7

36.6

10.3

8.8

22.3

23.4

6.8

5.8

HUL

Neutral

1,208

261,501

37,077

41,508

20.3

21.8

5,189.9

6,318.5

0.2

36.8

31.5

74.8

82.0

6.9

6.2

ITC

Neutral

266

323,753

44,588

49,853

37.0

37.3

9.6

11.0

27.7

24.2

6.8

6.5

25.1

27.3

6.7

6.0

Marico

Neutral

317

40,882

6,788

7,766

18.5

19.2

7.1

8.5

44.6

37.3

15.6

13.4

36.9

38.0

5.9

5.1

Nestle*

Neutral

7,288

70,271

10,083

11,182

20.0

20.9

119.7

141.3

60.9

51.6

214.6

196.1

36.7

39.8

6.6

5.9

Tata Global

Neutral

208

13,153

7,121

7,641

11.9

12.3

6.9

8.0

30.2

26.1

2.0

1.9

6.8

7.2

1.7

1.5

Procter & Gamble

Neutral

8,651

28,082

3,034

3,579

27.1

27.7

167.7

198.8

51.6

43.5

13.9

11.9

28.8

29.5

8.7

7.3

Hygiene

HCL Tech^

Accumulate

898

1,014

128,201

52,342

57,053

20.9

62.8

67.6

14.3

13.3

3.2

2.7

22.4

20.6

2.1

1.8

Infosys

Buy

936

1,179

214,904

73,963

80,619

26.0

64.4

69.3

14.5

13.5

2.9

2.6

19.7

19.6

2.3

2.1

TCS

Accumulate

2,460

2,651

484,637

127,403

138,870

27.6

144.5

156.0

17.0

15.8

5.1

4.7

29.7

29.8

3.5

3.1

Tech Mahindra

Accumulate

465

533

45,365

31,015

33,496

15.0

35.6

38.1

13.1

12.2

2.2

2.1

17.0

16.3

1.2

1.1

www.angelbroking.com

Stock Watch

October 11, 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

Wipro

Neutral

287

139,455

58,536

61,858

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

382

7,019

2,404

2,625

30.5

31.5

23.7

26.9

16.1

14.2

3.8

3.2

23.5

22.8

2.8

2.5

HT Media

Neutral

2,261

2,589

2,830

15.1

15.4

8.3

10.9

11.7

8.9

1.0

0.9

8.4

10.4

0.4

0.3

Jagran Prakashan

Buy

176

225

5,762

2,541

2,835

28.5

28.7

12.7

14.1

13.9

12.5

2.9

2.5

21.3

21.4

2.1

1.8

Sun TV Network

Neutral

816

32,167

3,238

3,789

51.9

55.1

30.9

38.0

26.4

21.5

7.5

6.6

30.0

31.0

9.4

8.0

Hindustan Media

Neutral

246

1,806

1,002

1,074

23.3

23.5

29.2

33.8

8.4

7.3

1.3

1.1

15.6

15.4

0.8

0.5

Ventures

TV Today Network

Accumulate

389

435

2,323

667

727

27.7

18.6

20.1

20.9

19.4

3.3

15.6

17.3

3.0

2.8

Music Broadcast Limited Accumulate

405

434

2,309

271

317

91.0

109.0

6.0

10.0

67.5

40.5

4.2

3.8

6.5

9.3

8.1

6.7

Metals & Mining

Coal India

Neutral

286

177,222

82,301

91,235

17.0

18.0

17.1

20.5

16.7

13.9

3.1

2.9

45.0

55.0

1.8

1.6

Hind. Zinc

Neutral

314

132,717

22,108

24,555

57.0

58.0

22.1

26.3

14.2

11.9

4.6

3.7

32.0

35.0

5.0

4.2

Hindalco

Neutral

252

56,449

102,350

105,355

13.5

14.5

21.5

24.5

11.7

10.3

1.6

1.4

15.0

15.2

1.1

JSW Steel

Neutral

260

62,799

64,500

68,245

21.1

21.5

20.1

21.2

12.9

12.3

2.4

2.0

1.7

1.6

NMDC

Neutral

121

38,188

10,209

11,450

47.0

48.0

11.1

12.1

10.9

10.0

1.5

1.4

3.3

2.9

SAIL

Neutral

23,521

54,100

63,555

3.0

10.0

(10.0)

1.5

38.0

0.8

1.4

1.2

Vedanta

Neutral

321

119,322

81,206

87,345

28.0

29.0

26.5

33.5

12.1

9.6

2.8

2.4

2.2

1.9

Tata Steel

Neutral

691

67,077

121,445

126,500

16.2

17.2

65.4

81.3

10.6

8.5

1.7

1.4

1.1

0.9

Oil & Gas

GAIL

Neutral

444

75,162

53,115

52,344

14.2

15.3

30.0

31.1

14.8

14.3

1.9

1.7

1.1

ONGC

Neutral

170

218,422

83,111

84,934

44.2

44.9

16.4

16.9

10.4

10.1

1.3

1.2

2.5

Indian Oil Corp

Neutral

411

199,505

396,116

432,560

8.5

8.8

40.1

42.2

10.3

9.7

1.8

1.6

0.6

Reliance Industries

Neutral

843

548,531

257,711

267,438

17.0

18.2

89.1

89.5

9.5

9.4

0.9

0.8

1.8

1.7

Pharmaceuticals

Alembic Pharma

Buy

500

600

9,429

3,903

4,584

18.2

19.2

21.8

27.2

22.9

18.4

4.2

3.5

19.8

20.6

2.4

2.1

Alkem Laboratories Ltd

Accumulate

1,849

2,079

22,105

6,320

7,341

17.5

19.8

72.7

96.6

25.4

19.1

4.5

3.8

16.7

18.7

3.4

2.9

Aurobindo Pharma

Accumulate

735

823

43,068

17,086

19,478

22.1

22.0

44.7

51.4

16.5

14.3

3.6

2.9

24.7

22.7

2.6

2.3

Aventis*

Neutral

4,057

9,344

2,508

2,862

16.8

139.9

153.8

29.0

26.4

4.2

3.4

23.5

25.8

3.3

2.7

Cadila Healthcare

Reduce

494

426

50,522

11,584

13,228

20.3

20.4

18.7

21.3

26.4

23.2

5.9

4.8

24.6

22.9

4.2

3.6

Cipla

Sell

589

458

47,420

16,619

19,437

15.4

16.2

19.7

24.3

29.9

24.3

3.4

3.0

12.0

13.2

3.0

2.6

Dr Reddy's

Neutral

2,410

39,960

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

2,411

20,423

3,260

3,651

15.0

18.0

46.1

58.6

52.3

41.2

10.7

11.1

20.0

26.5

6.2

5.6

Indoco Remedies

Sell

241

153

2,224

1,154

1,310

14.9

11.3

12.7

21.4

19.0

3.0

2.7

15.0

2.1

1.8

www.angelbroking.com

Stock Watch

October 11, 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

519

6,547

3,593

4,022

14.5

15.5

19.4

25.2

26.8

20.6

2.4

2.2

9.5

11.2

1.9

1.7

Lupin

Buy

1,061

1,467

47,918

18,657

21,289

21.3

23.3

52.8

66.7

20.1

15.9

3.0

2.6

16.3

17.5

2.6

2.1

Natco Pharma

Accumulate

991

1,057

17,276

1,886

2,016

32.3

29.5

23.2

22.0

42.8

45.0

9.0

7.9

20.9

17.6

9.0

8.4

Sun Pharma

Accumulate

527

558

126,512

32,899

36,451

26.9

25.4

31.6

32.3

16.7

16.3

2.9

2.6

18.7

18.8

3.5

3.0

Syngene International

Accumulate

494

557

9,885

1,402

1,823

32.8

36.0

15.9

20.7

31.1

23.9

5.8

4.8

18.7

20.0

7.0

5.4

Power

Tata Power

Neutral

22,057

32,547

33,806

20.5

4.7

5.4

17.4

15.2

1.7

1.4

10.5

1.7

1.6

NTPC

Neutral

175

144,419

86,070

101,246

28.3

30.7

12.9

16.2

13.6

10.8

1.4

1.3

10.6

12.4

3.0

2.7

Power Grid

Accumulate

205

223

107,038

29,183

32,946

89.7

90.0

18.0

20.8

11.4

9.8

1.9

1.7

17.7

18.2

7.6

7.1

Real Estate

Prestige Estate

Neutral

299

11,198

4,607

5,146

21.0

22.2

7.9

9.8

37.8

30.5

2.3

2.2

10.3

12.0

3.6

3.3

MLIFE

Accumulate

468

522

2,404

487

590

12.3

17.8

21.0

31.2

22.3

15.0

1.2

1.1

5.2

7.4

3.7

3.0

Telecom

Bharti Airtel

Neutral

384

153,520

97,903

105,233

36.0

36.3

9.3

11.1

41.3

34.8

2.0

1.9

5.0

5.6

2.5

2.3

Idea Cellular

Neutral

26,312

35,012

37,689

27.1

27.7

(4.4)

(2.7)

1.1

1.2

(6.8)

(4.6)

2.1

1.8

zOthers

Abbott India

Neutral

4,142

8,802

3,244

3,723

14.9

16.1

167.5

209.4

24.7

19.8

5.5

4.6

23.7

24.8

2.4

2.0

Asian Granito

Accumulate

496

570

1,492

1,169

1,286

12.5

16.0

19.7

31.0

25.2

3.3

2.9

10.7

11.6

1.5

1.3

Bajaj Electricals

Neutral

388

3,944

4,646

5,301

6.7

7.6

16.1

22.3

24.1

17.4

3.9

3.4

16.4

19.2

0.8

0.7

Banco Products (India)

Neutral

216

1,546

1,530

1,695

13.2

12.7

19.0

20.0

11.4

10.8

1.8

1.6

0.2

0.9

102.2

Coffee Day Enterprises

Neutral

216

4,441

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

757

171

201

15.0

16.2

36.0

43.0

1.9

1.6

0.2

0.1

3.8

3.2

Garware Wall Ropes

Neutral

929

2,033

928

1,003

15.2

39.4

43.2

23.6

21.5

3.9

3.3

16.5

15.4

2.1

1.8

Goodyear India*

Neutral

827

1,908

1,717

1,866

11.8

12.3

47.9

49.8

17.3

16.6

2.7

2.3

15.6

15.7

0.8

115.5

Hitachi

Neutral

2,056

5,590

2,355

2,715

10.3

10.8

49.0

60.9

42.0

33.8

9.8

7.8

0.2

2.4

2.1

HSIL

Neutral

454

3,283

2,240

2,670

14.6

15.0

17.0

22.0

26.7

20.6

2.2

2.1

0.1

1.7

1.4

Interglobe Aviation

Neutral

1,117

40,393

22,570

27,955

14.2

15.0

63.6

81.8

17.6

13.7

9.2

7.8

0.5

0.6

1.5

1.1

Jyothy Laboratories

Neutral

394

7,150

1,781

2,044

14.1

15.0

9.4

10.5

42.1

37.5

9.0

8.4

0.2

4.2

3.6

Linc Pen & Plastics

Neutral

245

362

420

462

9.3

15.3

17.1

16.0

14.3

2.7

2.8

16.9

19.5

0.9

0.8

M M Forgings

Neutral

784

946

542

642

20.1

21.0

41.6

56.8

18.9

13.8

2.6

2.2

0.1

0.2

2.2

1.9

Mirza International

Neutral

162

1,948

1,148

1,285

18.0

8.0

9.4

20.1

17.3

3.3

2.8

16.3

16.1

1.9

1.6

Navkar Corporation

Buy

187

265

2,667

561

617

41.5

11.5

12.7

16.2

14.7

1.7

1.5

10.5

10.4

5.4

4.7

Nilkamal

Neutral

1,610

2,402

2,317

2,525

11.4

11.1

96.0

105.0

16.8

15.3

2.8

2.5

0.2

1.0

0.9

www.angelbroking.com

Stock Watch

October 11, 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

254

2,133

1,987

2,379

7.6

9.0

12.4

18.3

20.5

13.9

2.9

2.5

8.2

13.2

1.2

1.0

Radico Khaitan

Neutral

174

2,313

1,811

1,992

13.2

8.1

8.8

21.4

19.7

2.2

2.4

10.1

12.0

1.6

1.5

Relaxo Footwears

Neutral

520

6,241

1,981

2,310

13.7

14.5

12.0

15.5

43.3

33.5

8.4

6.8

0.2

3.2

2.8

Siyaram Silk Mills

Accumulate

2,655

2,856

2,489

1,769

1,981

12.7

113.1

131.1

23.5

20.3

3.6

3.1

15.5

1.6

1.4

Styrolution ABS India* Neutral

1,030

1,810

1,800

1,980

8.0

8.1

42.0

46.2

24.5

22.3

2.8

2.4

0.1

1.1

1.0

Surya Roshni

Neutral

310

1,358

4,870

5,320

7.7

7.8

22.8

28.1

13.6

11.0

1.8

1.6

0.1

0.5

0.4

TVS Srichakra

Neutral

3,046

2,332

2,729

2,893

12.7

12.5

248.5

265.0

12.3

11.5

3.5

2.8

0.3

0.9

0.8

Visaka Industries

Neutral

693

1,101

1,104

1,214

12.1

12.6

31.0

37.9

22.4

18.3

2.7

2.4

0.1

1.2

1.1

VIP Industries

Accumulate

273

300

3,852

1,450

1,693

10.4

10.5

6.5

7.8

41.7

34.9

8.8

7.7

21.1

22.1

2.6

2.3

Navin Fluorine

Neutral

740

3,650

945

1,154

22.4

22.6

28.7

34.8

25.8

21.3

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 10, 2017

www.angelbroking.com

Market Outlook

October 11, 2017

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make

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