Market Outlook

September 12, 2016

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian markets are likely to open negative taking global cues

BSE Sensex

(0.9)

(248)

28,797

Nifty

(1.0)

(86)

8,867

US markets moved sharply lower over the course of the trading session on Friday

amid renewed concerns about the outlook for interest rates. The Dow and the S&P

Mid Cap

(1.0)

(134)

13,345

500 tumbled to two-month closing lows, while the Nasdaq hit its lowest closing level

Small Cap

(0.5)

(61)

12,861

in well over a month.

Bankex

(1.0)

(237)

23,250

The European markets ended Friday's session firmly in negative territory. Continued

disappointment over the inaction of the European Central Bank weighed on investor

Global Indices

Chg (%)

(Pts)

(Close)

sentiment. Weak economic data from Germany and France, along with

Dow Jones

(2.1)

(394)

18,085

disappointing Chinese inflation data, added to the negative mood.

Nasdaq

(2.5)

(134)

5,126

Indian markets succumbed to selling pressure on Friday after the European Central

FTSE

(1.2)

(82)

6,777

Bank left its stimulus program unchanged.

Nikkei

0.0

16,966

News Analysis

Hang Seng

0.8

180

24,100

 Review - HDIL

Shanghai Com

(0.6)

(17)

3,079

 Suzuki launches new variant of its scooter Access 125

Detailed analysis on Pg2

Advances / Declines

BSE

NSE

Investor’s Ready Reckoner

Advances

1,143

560

Key Domestic & Global Indicators

Declines

1,636

1,056

Stock Watch: Latest investment recommendations on 150+ stocks

Unchanged

188

Refer Pg5 onwards

Volumes (` Cr)

Top Picks

CMP

Target

Upside

Company

Sector

Rating

BSE

3,569

(`)

(%)

NSE

23,148

Amara Raja Batteries Auto & Auto Ancillary

Buy

1,017

1,174

15.4

HCL Tech

Buy

778

1,000

28.5

Bharat Electronics

Capital Goods

Buy

1,211

1,414

16.7

Net Inflows (` Cr)

Net

Mtd

Ytd

Equitas Holdings

Financials

Buy

182

235

29.3

FII

864

2,121

42,790

Navkar Corporation Others

Buy

191

265

38.7

MFs

(94)

196

10,304

More Top Picks on Pg3

Key Upcoming Events

Top Gainers

Price (`)

Chg (%)

Consensus

Date

Region

Event Description

Reading

Expectations

Il&Fstrans

19.2

Sep 12 India

Industrial Production YoY

2.1

1.9

Escorts

367

7.3

Sep 13 China

Industrial Production YoY

6.0

6.2

Idbi

5.2

Sep 13 UK

CPI (YoY)

0.6

0.7

Adanipower

4.3

Sep 14 UK

Jobless claims change

(8.6)

1.6

Hcc

3.7

Sep 14 India

Imports YoY%

(19.3)

Sep 15 India

Monthly Wholesale Prices YoY%

3.55

4.04

6.(

More Events on Pg4

Top Losers

Price (`)

Chg (%)

Sail

(5.7)

Rdel

(5.4)

Hindalco

155

(4.5)

Bharatfin

779

(4.4)

Cesc

642

(4.3)

As on September 09, 2016

www.angelbroking.com

Market Outlook

September 12, 2016

News Analysis

HDIL - Review

Realty firm Housing Development and Infrastructure Ltd (HDIL) on Saturday

reported a ~30% decline in net profit at ~`41cr for the quarter ended June 30,

2016. HDIL had posted a net profit of ~`58cr in the year ago period, Mumbai-

based developer said in a regulatory filing. Income from operations fell marginally

to ~`261cr in the first quarter of this financial year from ~`267cr in the

corresponding period of the previous year. Total income stood at ~`265cr for the

quarter ended June against ~`273cr in the year-ago period.

Suzuki launches new variant of its scooter Access 125

Suzuki Motorcycle India on Saturday launched a special edition of its flagship

scooter Access 125 priced up to `58,900 (ex-showroom Delhi). Access

125

Special Edition, has been crafted to make a retro style statement with exclusive

styling elements. The Access 125 has been one of our most successful models. The

company has enhanced the fashion quotient and introduced the Access 125

Special Edition to diversify its presence in the segment and cater to the evolving

needs of customers. The new variant is a combination of substance and style which

gives it a retro feel and makes it stand out in the crowd. The scooter with drum

brake is priced at `55,589 while the one with disc brake would retail at `58,900.

Economic and Political News

 Telangana to bring land acquisition act to speed up irrigation projects

 Karnataka Cabinet calls off special session on GST ratification

 Chennai Metro Rail project Phase-I to be completed by 2017 end

Corporate News

 Lanco Infratech's net loss widens to `449cr in April-June quarter

 Bhushan Steel's net loss narrows in Q1 to `656.21cr

 DLF to invest `500cr on developing IT park in Chennai

www.angelbroking.com

Market Outlook

September 12, 2016

Top Picks ★★★★★

Large Cap

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

To outpace battery industry growth due to better technological

Amara Raja Batteries

17,379

1,017

1,174

15.4

products leading to market share gains in both the automotive

OEM and replacement segments.

Uptick in defense capex by government when coupled with BELs

Bharat Electronics

29,069

1,211

1,414

16.7

strong market positioning, indicate that good times are ahead

for BEL.

The stock is trading at attractive valuations and is factoring all

HCL Tech

1,09,792

778

1,000

28.5

the bad news.

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

Infosys

2,37,964

1,036

1,370

32.2

be a US$20bn in FY2020.

Source: Company, Angel Research

Mid Cap

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

Among the top 4 players in the consumer durables segment.

Bajaj Electricals

2,721

269

306

13.7

Improved profitability backed by turn around in E&P segment.

Strong order book lends earnings visibility.

Favourable outlook for the AC industry to augur well for

Cooling products business which is out pacing the market

Blue Star

4,865

510

578

13.2

growth. EMPPAC division's profitability to improve once

operating environment turns around.

With a focus on the low and medium income (LMI) consumer

Dewan Housing Finance

8,751

300

325

8.4

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

Equitas Holdings

6,095

182

235

29.3

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

1,370

594

684

15.2

Goodyear India as it derives ~50% of its turnover from farm

tyre segment.

Economic recovery to have favourable impact on advertising &

circulation revenue growth. Further, the acquisition of a radio

Jagran Prakashan

6,278

192

225

17.1

business (Radio City) would also boost the company's revenue

growth.

Speedier execution and speedier sales, strong revenue visibilty

Mahindra Lifespace

1,778

433

522

20.5

in short-to-long run, attractive valuations

Massive capacity expansion along with rail advantage at ICD

Navkar Corporation

2,724

191

265

38.7

as well CFS augurs well for the company

Earnings boost on back of stable material prices and

Radico Khaitan

1,443

108

125

15.3

favourable pricing environment. Valuation discount to peers

provides additional comfort

Strong brands and distribution network would boost growth

Siyaram Silk Mills

1,206

1,286

1,469

14.2

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

1,822

305

363

18.9

and anticipated growth in ad spends by corporates to benefit

the stock.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

September 12, 2016

Key Upcoming Events

Result Calendar

Date

Company

Sep 12, 2016

BGR Energy , Tata Steel, Nalco, Reliance Power

Sep 13, 2016

Suzlon Energy, Coal India, Godawari Ispat, Reliance Infra.

Sep 14, 2016

Monnet Ispat, CESC, Unitech, Anant Raj

Source: Bloomberg, Angel Research

Global economic events release calendar

Date

Time

Country

Event Description

Unit

Period

Bloomberg Data

Last Reported Estimated

Sep 12, 2016 5:30PM India

Industrial Production YoY

% Change

Jul

2.10

1.50

Sep 13, 2016 7:30AM China

Industrial Production (YoY)

% Change

Aug

6.00

6.20

2:00PM UK

CPI (YoY)

% Change

Aug

0.60

0.70

Sep 14, 2016 2:00PM UK

Jobless claims change

% Change

Aug

(8.60)

1.60

India

Imports YoY%

% Change

Aug

(19.03)

Sep 15, 2016 12:00PM India

Monthly Wholesale Prices YoY%

% Change

Aug

3.55

4.00

6:00PM US

Initial Jobless claims

Thousands

Sep 10

259.00

India

Exports YoY%

% Change

Aug

(6.84)

2:30PM Euro Zone

Euro-Zone CPI (YoY)

Aug F

0.20

6:45PM US

Industrial Production

Aug

0.74

(0.20)

Producer Price Index (mom)

% Change

Aug

(0.50)

4:30PM UK

BOE Announces rates

% Ratio

Sep 15

0.25

Sep 16, 2016 6:00PM US

Consumer price index (mom)

% Change

Aug

0.10

Sep 20, 2016 6:00PM US

Housing Starts

Thousands

Aug

1,211.00

1,190.00

6:00PM US

Building permits

Thousands

Aug

1,144.00

1,173.00

Sep 21, 2016 11:30PM US

FOMC rate decision

Sep 21

0.50

Sep 22, 2016 7:30PM US

Existing home sales

Million

Aug

5.39

7:30PM Euro Zone

Euro-Zone Consumer Confidence

Value

Sep A

(8.50)

Sep 23, 2016 1:00PM Germany

PMI Services

Value

Sep P

51.70

1:00PM Germany

PMI Manufacturing

Value

Sep P

53.60

Sep 26, 2016 7:30PM US

New home sales

Thousands

Aug

654.00

Sep 27, 2016 7:30PM US

Consumer Confidence

S.A./ 1985=100

Sep

101.10

Sep 29, 2016 1:25PM Germany

Unemployment change (000's)

Thousands

Sep

(7.00)

6:00PM US

GDP Qoq (Annualised)

% Change

2Q T

1.10

Sep 30, 2016 2:00PM UK

GDP (YoY)

% Change

2Q F

2.20

Source: Bloomberg, Angel Research

Market Outlook

September 12, 2016

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

9.0

8.3

12.0

9.9

7.8

7.9

10.0

8.0

7.5

7.6

7.2

7.1

8.0

6.3

6.6

6.7

7.0

6.4

6.0

3.7

5.8

6.0

4.0

1.9

2.1

1.1

2.0

0.3

5.0

4.0

(2.0)

(0.9)

(1.3)

(1.6)

(4.0)

3.0

(3.4)

(6.0)

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

(%)

55.0

7.0

6.1

54.0

5.7

5.8

6.0

5.4

5.6

5.5

5.3

53.0

5.0

4.8

5.0

4.4

52.0

3.7

51.0

4.0

50.0

3.0

49.0

2.0

48.0

1.0

47.0

46.0

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

5.0

7.00

0.0

6.50

(5.0)

6.00

(10.0)

5.50

(15.0)

5.00

(20.0)

4.50

(25.0)

4.00

(30.0)

3.50

(35.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Market Outlook

September 12, 2016

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

58,000

0.5

17.4

22.5

Russia

Micex

2,028

4.4

6.5

17.8

India

Nifty

8,867

1.8

7.2

13.9

China

Shanghai Composite

3,079

0.8

6.4

(4.3)

South Africa

Top 40

46,735

3.6

(2.1)

6.0

Mexico

Mexbol

46,459

(2.8)

3.4

8.6

Indonesia

LQ45

906

(3.2)

9.1

17.6

Malaysia

KLCI

1,686

0.9

1.6

6.1

Thailand

SET 50

921

(6.5)

0.0

1.7

USA

Dow Jones

18,085

(2.4)

0.6

10.1

FTSE

6,777

(1.1)

10.8

11.4

Japan

Nikkei

16,966

1.2

1.8

(10.2)

Germany

DAX

10,573

(0.7)

9.5

3.8

France

CAC

4,491

0.9

6.3

(1.0)

Source: Bloomberg, Angel Research

www.angelbroking.com

Stock Watch

September 12, 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

228

4,431

1,937

2,164

13.3

14.3

9.0

11.0

25.3

20.7

4.4

3.9

18.4

19.8

2.3

2.1

United Phosphorus

Neutral

659

33,401

15,176

17,604

18.5

37.4

44.6

17.6

14.8

3.5

2.9

21.4

21.2

2.3

1.9

Auto & Auto Ancillary

Ashok Leyland

Buy

111

24,830

22,407

26,022

10.6

5.2

6.4

16.7

13.6

3.8

3.2

23.6

24.7

1.2

1.0

Bajaj Auto

Neutral

3,034

87,797

25,093

27,891

19.5

19.2

143.9

162.5

21.1

18.7

5.9

5.1

30.3

29.4

3.3

2.9

Bharat Forge

Neutral

864

20,103

7,726

8,713

20.5

21.2

35.3

42.7

24.5

20.2

4.5

4.1

18.9

20.1

2.7

2.4

Eicher Motors

Neutral

22,925

62,267

16,583

20,447

17.5

18.0

598.0

745.2

38.3

30.8

13.1

10.0

41.2

38.3

3.7

2.9

Gabriel India

Neutral

118

1,697

1,544

1,715

9.0

9.3

5.4

6.3

21.9

18.8

4.1

3.7

18.9

19.5

1.1

1.0

Hero Motocorp

Neutral

3,624

72,363

31,253

35,198

15.3

15.0

172.3

192.1

21.0

18.9

7.7

6.6

38.9

37.0

2.2

1.9

Jamna Auto Industries Neutral

218

1,739

1,486

1,620

9.8

9.9

15.0

17.2

14.5

12.7

3.2

2.7

21.8

21.3

1.2

1.1

L G Balakrishnan & Bros Neutral

529

831

1,302

1,432

11.6

11.9

43.7

53.0

12.1

10.0

1.7

1.6

13.8

14.2

0.7

Mahindra and Mahindra Neutral

1,471

91,356

46,534

53,077

11.6

11.7

67.3

78.1

21.9

18.8

3.6

3.1

15.4

15.8

2.0

1.7

Maruti

Neutral

5,401

163,153

69,186

82,217

14.7

14.4

198.5

241.4

27.2

22.4

5.3

4.3

20.2

20.0

2.1

1.7

Minda Industries

Neutral

1,522

2,414

2,728

3,042

9.0

9.1

68.2

86.2

22.3

17.7

5.1

4.0

23.8

24.3

1.0

0.8

Motherson Sumi

Neutral

329

43,538

45,896

53,687

7.8

8.3

13.0

16.1

25.2

20.4

8.1

6.5

34.7

35.4

1.0

0.9

Rane Brake Lining

Neutral

1,034

818

511

562

11.3

11.5

28.1

30.9

36.8

33.5

5.6

5.1

15.3

15.0

1.8

1.6

Setco Automotive

Neutral

601

741

837

13.0

15.2

17.0

3.0

2.6

0.5

0.4

15.8

16.3

1.2

1.1

Tata Motors

Neutral

573

165,437

300,209

338,549

8.9

8.4

42.7

54.3

13.4

10.6

2.2

1.8

15.6

17.2

0.7

0.6

TVS Motor

Neutral

330

15,678

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

1,017

1,174

17,379

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

16,205

7,439

8,307

15.0

8.1

9.3

23.5

20.5

3.3

2.9

14.3

16.7

1.8

1.6

Apollo Tyres

Neutral

213

10,835

12,877

14,504

14.3

13.9

21.4

23.0

9.9

9.3

1.5

1.3

16.4

15.2

1.0

0.9

Ceat

Accumulate

1,035

1,119

4,185

7,524

8,624

13.0

12.7

131.1

144.3

7.9

7.2

1.5

1.2

19.8

18.6

0.6

JK Tyres

Neutral

143

3,238

7,455

8,056

15.0

21.8

24.5

6.6

5.8

1.4

1.1

22.8

21.3

0.6

0.5

Swaraj Engines

Neutral

1,210

1,503

660

810

15.2

16.4

54.5

72.8

22.2

16.6

6.9

6.3

31.5

39.2

2.1

1.7

Subros

Neutral

135

810

1,488

1,681

11.7

11.9

6.4

7.2

21.1

18.8

2.2

2.0

10.8

11.4

0.8

0.6

Indag Rubber

Neutral

183

481

286

326

19.8

16.8

11.7

13.3

15.7

13.7

2.6

2.5

17.8

17.1

1.4

1.2

Capital Goods

ACE

Neutral

440

709

814

4.1

4.6

1.4

2.1

31.8

21.2

1.3

1.2

4.4

6.0

0.8

0.7

BEML

Accumulate

1,072

1,157

4,463

3,451

4,055

6.3

9.2

31.4

57.9

34.1

18.5

2.1

1.9

6.3

10.9

1.4

1.2

Bharat Electronics

Buy

1,211

1,414

29,069

8,137

9,169

16.8

17.2

58.7

62.5

20.6

19.4

3.2

2.8

44.6

46.3

2.5

2.3

www.angelbroking.com

Stock Watch

September 12, 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

389

12,863

6,511

7,514

7.9

8.7

12.9

16.3

30.1

23.9

5.4

4.8

16.7

18.5

1.7

1.5

BGR Energy

Neutral

124

895

16,567

33,848

6.0

5.6

7.8

5.9

15.9

21.0

0.9

4.7

4.2

0.2

0.1

BHEL

Neutral

154

37,693

28,797

34,742

2.8

2.3

6.9

67.0

22.3

1.1

1.3

4.8

1.0

0.7

Blue Star

Accumulate

510

578

4,865

4,351

5,024

6.4

7.1

17.2

20.6

29.7

24.7

19.3

16.1

23.1

24.1

1.2

1.0

Crompton Greaves

Neutral

5,133

5,777

6,120

5.9

7.0

3.3

4.5

24.8

18.2

1.1

1.0

4.4

5.9

0.9

0.7

Greaves Cotton

Neutral

134

3,265

1,755

1,881

16.8

16.9

7.8

8.5

17.1

15.7

3.4

3.2

20.6

20.9

1.6

1.4

Inox Wind

Buy

179

286

3,975

5,605

6,267

15.7

16.4

24.8

30.0

7.2

6.0

2.0

1.5

25.9

24.4

0.7

0.6

KEC International

Neutral

131

3,355

9,294

10,186

7.9

8.1

9.9

11.9

13.2

11.0

1.9

1.7

15.6

16.3

0.6

0.5

Thermax

Neutral

849

10,117

5,421

5,940

7.3

25.7

30.2

33.0

28.1

4.0

3.7

12.2

13.1

1.8

1.6

VATech Wabag

Buy

566

681

3,083

3,136

3,845

8.9

9.1

26.0

35.9

21.8

15.8

2.7

2.3

13.4

15.9

0.9

0.7

Cement

ACC

Neutral

1,653

31,046

11,225

13,172

13.2

16.9

44.5

75.5

37.2

21.9

3.5

3.2

11.2

14.2

2.8

2.4

Ambuja Cements

Neutral

273

54,129

9,350

10,979

18.2

22.5

5.8

9.5

47.0

28.7

4.0

3.5

10.2

12.5

5.9

5.0

India Cements

Neutral

149

4,586

4,364

4,997

18.5

19.2

7.9

11.3

18.9

13.2

1.4

1.3

8.0

8.5

1.8

1.6

JK Cement

Neutral

794

5,553

4,398

5,173

15.5

17.5

31.2

55.5

25.5

14.3

3.1

2.7

12.0

15.5

1.8

1.5

J K Lakshmi Cement

Neutral

473

5,570

2,913

3,412

14.5

19.5

7.5

22.5

63.1

21.0

3.9

3.3

12.5

18.0

2.5

2.1

Orient Cement

Neutral

195

3,991

2,114

2,558

18.5

20.5

8.1

11.3

24.1

17.2

3.5

3.0

9.0

14.0

2.6

2.0

UltraTech Cement

Neutral

3,972

108,999

25,768

30,385

21.0

23.5

111.0

160.0

35.8

24.8

4.6

4.0

13.5

15.8

4.5

3.7

Construction

ITNL

Buy

3,119

8,946

10,017

31.0

31.6

8.1

9.1

11.7

10.4

0.4

4.2

5.0

3.6

3.4

KNR Constructions

Accumulate

703

802

1,977

1,385

1,673

14.7

14.0

41.2

48.5

17.1

14.5

3.2

2.8

14.9

15.2

1.5

1.3

Larsen & Toubro

Accumulate

1,519

1,700

141,609

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

195

9,410

705

788

52.2

51.7

5.0

5.6

38.9

34.8

3.8

3.5

11.2

12.5

10.7

Nagarjuna Const.

Neutral

4,889

8,842

9,775

9.1

8.8

5.3

6.4

16.6

13.7

1.3

1.2

8.2

9.1

0.7

0.6

PNC Infratech

Accumulate

125

143

3,200

2,350

2,904

13.1

13.2

9.0

8.8

13.9

14.2

0.5

15.9

13.9

1.5

1.2

Simplex Infra

Neutral

348

1,722

6,829

7,954

10.5

31.4

37.4

11.1

9.3

1.2

1.1

9.9

13.4

0.7

0.6

Power Mech Projects

Neutral

468

689

1,801

2,219

12.7

14.6

72.1

113.9

6.5

4.1

1.2

1.0

16.8

11.9

0.4

0.3

Sadbhav Engineering

Neutral

298

5,107

3,598

4,140

10.3

10.6

9.0

11.9

33.1

25.0

3.5

3.0

9.9

11.9

1.7

1.5

NBCC

Neutral

252

15,132

7,428

9,549

7.9

8.6

8.2

11.0

30.8

22.9

1.5

1.2

28.2

28.7

1.8

1.3

MEP Infra

Neutral

705

1,877

1,943

30.6

29.8

3.0

4.2

14.5

10.3

7.0

4.7

0.6

1.8

1.6

SIPL

Neutral

106

3,737

1,036

1,252

65.5

66.2

(8.4)

(5.6)

4.0

4.5

(22.8)

(15.9)

11.8

9.8

www.angelbroking.com

Stock Watch

September 12, 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

265

8,934

1,725

1,935

16.0

19.1

11.4

13.9

23.3

19.1

3.2

3.1

13.4

15.3

4.2

3.8

Financials

Axis Bank

Neutral

613

146,356

58,081

66,459

3.5

32.4

44.6

19.0

13.7

2.5

2.2

13.6

16.5

Bank of Baroda

Neutral

172

39,609

19,980

23,178

1.8

11.5

17.3

15.0

9.9

1.7

1.4

8.3

10.1

Canara Bank

Neutral

311

16,898

15,225

16,836

1.8

14.5

28.0

21.5

11.1

1.5

1.2

5.8

8.5

Dewan Housing Finance Accumulate

300

325

8,751

2,225

2,688

2.9

29.7

34.6

10.1

8.7

1.6

1.4

16.1

16.8

Equitas Holdings

Buy

182

235

6,095

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

12,586

9,353

10,623

2.9

4.4

5.8

16.7

12.6

1.6

1.4

9.5

11.0

HDFC

Neutral

1,411

223,050

11,475

13,450

3.4

45.3

52.5

31.1

26.9

6.0

5.3

20.2

20.5

HDFC Bank

Neutral

1,291

326,734

46,097

55,433

4.5

58.4

68.0

22.1

19.0

3.9

3.2

18.8

18.6

ICICI Bank

Neutral

274

159,471

39,029

45,903

3.3

16.7

16.3

16.4

16.8

2.0

1.8

10.1

12.4

LIC Housing Finance

Neutral

583

29,437

3,712

4,293

2.6

2.5

39.0

46.0

15.0

12.7

2.8

2.4

19.9

20.1

Punjab Natl.Bank

Neutral

145

28,453

23,532

23,595

2.3

2.4

6.8

12.6

21.3

11.5

3.3

2.3

3.3

6.5

South Ind.Bank

Neutral

3,261

6,435

7,578

2.5

2.7

3.1

8.9

7.8

1.2

1.0

10.1

11.2

St Bk of India

Neutral

264

204,937

88,650

98,335

2.6

13.5

18.8

19.6

14.0

1.9

1.6

7.0

8.5

Union Bank

Neutral

149

10,264

13,450

14,925

2.3

25.5

34.5

5.9

4.3

0.9

0.7

7.5

10.2

Yes Bank

Neutral

1,277

53,772

8,978

11,281

3.3

3.4

74.0

90.0

17.3

14.2

3.3

2.8

17.0

17.2

RBL Bank

Accumulate

299

325

11,050

1,783

2,309

2.6

12.7

16.4

23.5

18.2

2.6

2.3

12.8

13.3

FMCG

Asian Paints

Neutral

1,172

112,380

17,128

18,978

16.8

16.4

19.1

20.7

61.3

56.6

21.3

20.1

34.8

35.5

6.5

5.9

Britannia

Neutral

3,452

41,420

9,795

11,040

14.6

14.9

80.3

94.0

43.0

36.7

17.7

13.7

41.2

4.1

3.6

Colgate

Neutral

984

26,774

4,605

5,149

23.4

23.8

26.9

41.4

36.6

22.9

17.9

64.8

66.8

5.8

5.1

Dabur India

Neutral

294

51,666

8,315

9,405

19.8

20.7

8.1

9.2

36.3

31.9

10.1

8.4

31.6

31.0

6.0

5.2

GlaxoSmith Con*

Neutral

6,126

25,763

4,350

4,823

21.2

21.4

179.2

196.5

34.2

31.2

9.1

7.7

27.1

26.8

5.5

4.8

Godrej Consumer

Neutral

1,655

56,374

10,235

11,428

18.4

18.6

41.1

44.2

40.3

37.5

8.9

7.5

24.9

24.8

5.7

5.0

HUL

Neutral

930

201,307

35,252

38,495

17.6

17.4

20.4

21.9

45.5

42.5

37.4

32.8

82.2

77.3

5.7

5.2

ITC

Accumulate

259

283

312,272

40,059

44,439

39.0

39.2

9.1

10.1

28.5

25.6

7.7

6.8

27.2

26.5

7.5

6.7

Marico

Neutral

295

38,021

6,430

7,349

18.8

19.5

6.4

7.7

46.1

38.3

13.9

11.7

33.2

32.5

5.8

5.0

Nestle*

Neutral

6,507

62,736

10,073

11,807

20.7

21.5

124.8

154.2

52.1

42.2

21.4

19.3

34.8

36.7

6.0

5.1

Tata Global

Neutral

140

8,817

8,675

9,088

9.8

7.4

8.2

18.9

17.0

2.1

7.9

8.1

1.0

0.9

Procter & Gamble

Accumulate

6,580

7,369

21,359

2,939

3,342

23.2

23.0

146.2

163.7

45.0

40.2

100.8

96.6

25.3

23.5

6.8

5.9

Hygiene

www.angelbroking.com

Stock Watch

September 12, 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

HCL Tech^

Buy

778

1,000

109,792

49,242

57,168

20.5

55.7

64.1

14.0

12.1

2.8

2.2

20.3

17.9

2.1

1.7

Infosys

Buy

1,036

1,370

237,964

69,934

79,025

27.5

64.8

72.0

16.0

14.4

3.5

3.2

22.0

22.3

2.9

2.5

TCS

Buy

2,353

3,004

463,543

121,684

136,286

27.3

135.0

150.1

17.4

15.7

5.8

5.3

33.2

33.9

3.5

3.1

Tech Mahindra

Buy

458

700

44,487

30,347

33,685

17.0

37.5

41.3

12.2

11.1

2.7

2.3

21.8

20.7

1.2

1.0

Wipro

Buy

481

680

116,833

51,631

55,822

21.7

17.9

35.9

36.9

13.4

13.0

2.8

2.6

19.0

18.1

1.9

1.7

Media

D B Corp

Neutral

405

7,438

2,297

2,590

27.4

28.2

21.0

23.4

19.3

17.3

4.5

3.9

23.7

23.1

3.1

2.7

HT Media

Neutral

1,976

2,693

2,991

12.6

12.9

7.9

9.0

10.8

9.4

0.9

0.8

7.8

8.3

0.3

0.2

Jagran Prakashan

Accumulate

192

225

6,278

2,355

2,635

28.0

10.8

12.5

17.8

15.4

3.9

3.3

21.7

2.9

2.5

Sun TV Network

Neutral

475

18,709

2,850

3,265

70.1

71.0

26.2

30.4

18.1

15.6

4.6

4.1

24.3

25.6

6.3

5.4

Hindustan Media

Neutral

288

2,113

1,016

1,138

24.3

25.2

27.3

30.1

10.6

9.6

2.0

1.8

16.2

15.8

1.4

1.2

Ventures

TV Today Network

Buy

305

363

1,822

637

743

27.5

18.4

21.4

16.6

14.3

2.9

2.5

17.4

17.2

2.6

2.1

Metals & Mining

Coal India

Neutral

332

209,798

84,638

94,297

21.4

22.3

24.5

27.1

13.6

12.3

5.6

5.4

42.6

46.0

2.0

1.8

Hind. Zinc

Neutral

221

93,168

14,252

18,465

55.9

48.3

15.8

21.5

14.0

10.3

2.3

2.0

17.0

20.7

6.6

5.1

Hindalco

Neutral

155

31,945

107,899

112,095

7.4

8.2

9.2

13.0

16.8

11.9

0.8

4.8

6.6

0.8

JSW Steel

Neutral

1,825

44,105

53,201

58,779

16.1

16.2

130.6

153.7

14.0

11.9

1.9

1.6

14.0

14.4

1.6

1.4

NMDC

Neutral

111

43,929

6,643

7,284

44.4

47.7

7.1

7.7

15.6

14.4

1.4

1.3

8.8

9.2

4.5

4.0

SAIL

Neutral

20,919

47,528

53,738

(0.7)

2.1

(1.9)

2.6

19.5

0.6

0.5

(1.6)

3.9

1.3

1.2

Vedanta

Neutral

171

50,770

71,744

81,944

19.2

21.7

13.4

20.1

12.8

8.5

1.1

1.0

8.4

11.3

1.1

0.8

Tata Steel

Neutral

395

38,314

121,374

121,856

7.2

8.4

18.6

34.3

21.2

11.5

1.3

1.2

6.1

10.1

1.0

0.9

Oil & Gas

Cairn India

Neutral

199

37,375

9,127

10,632

4.3

20.6

8.8

11.7

22.7

17.0

0.7

3.3

4.2

5.5

4.6

GAIL

Neutral

395

50,092

56,220

65,198

9.3

10.1

27.1

33.3

14.6

11.9

1.3

1.2

9.3

10.7

1.1

0.9

ONGC

Neutral

254

217,652

137,222

152,563

15.0

21.8

19.5

24.1

13.1

10.6

1.1

8.5

10.1

1.8

1.6

Indian Oil Corp

Neutral

564

136,852

373,359

428,656

5.9

5.5

54.0

59.3

10.4

9.5

1.6

1.5

16.0

15.6

0.5

0.4

Reliance Industries

Neutral

1,044

338,414

301,963

358,039

12.1

12.6

87.7

101.7

11.9

10.3

1.2

1.1

10.7

11.3

1.6

1.3

Pharmaceuticals

Alembic Pharma

Neutral

634

11,955

3,483

4,083

20.2

21.4

24.3

30.4

26.1

20.9

5.9

4.7

25.5

25.3

3.3

2.7

Aurobindo Pharma

Accumulate

803

877

46,972

15,720

18,078

23.7

41.4

47.3

19.4

17.0

5.0

3.9

29.6

26.1

3.2

2.8

Sanofi India*

Neutral

4,366

10,055

2,357

2,692

17.3

153.5

169.2

28.4

25.8

4.8

3.9

25.8

28.4

3.9

3.2

Cadila Healthcare

Neutral

389

39,839

11,126

13,148

22.0

17.1

20.0

22.8

19.5

5.8

4.6

28.8

26.6

3.6

3.0

Cipla

Sell

582

490

46,728

15,378

18,089

17.4

18.4

21.6

27.2

26.9

21.4

3.5

3.0

13.7

15.2

3.3

2.8

www.angelbroking.com

Stock Watch

September 12, 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

Dr Reddy's

Neutral

3,193

52,904

16,043

18,119

23.1

24.7

126.0

157.8

25.3

20.2

3.7

3.2

15.7

17.1

3.2

2.8

Dishman Pharma

Sell

177

2,857

1,718

1,890

22.7

22.8

9.5

11.3

18.6

15.7

1.8

1.6

10.1

10.9

2.2

1.9

GSK Pharma*

Neutral

2,993

25,352

3,528

3,811

16.6

18.8

51.8

59.4

57.8

50.4

15.5

15.4

26.3

30.6

7.0

6.5

Indoco Remedies

Sell

320

225

2,948

1,112

1,289

18.2

13.2

15.6

24.2

20.5

4.3

3.7

19.2

2.8

2.4

Ipca labs

Accumulate

588

613

7,417

3,303

3,799

15.3

17.3

19.7

34.0

29.8

3.0

2.7

9.1

9.4

2.3

2.0

Lupin

Accumulate

1,568

1,809

70,701

15,912

18,644

26.4

26.7

58.1

69.3

27.0

22.6

5.3

4.3

21.4

20.9

4.5

3.8

Sun Pharma

Buy

797

944

191,850

31,129

35,258

30.0

30.9

28.0

32.8

28.5

24.3

4.4

3.6

18.7

18.9

5.8

5.0

Power

Tata Power

Neutral

20,880

36,916

39,557

17.4

27.1

5.1

6.3

15.1

12.3

1.3

1.2

9.0

10.3

1.6

1.4

NTPC

Neutral

159

130,897

86,605

95,545

17.5

20.8

11.8

13.4

13.5

11.9

1.4

1.3

10.5

11.1

2.9

Power Grid

Neutral

184

96,078

25,763

29,762

74.3

73.1

14.8

17.3

12.4

10.6

1.9

1.7

16.9

17.5

8.0

7.6

Real Estate

MLIFE

Buy

433

522

1,778

1,152

1,300

22.7

24.6

29.9

35.8

14.5

12.1

1.1

1.0

7.6

8.6

2.3

1.9

Telecom

Bharti Airtel

Neutral

322

128,696

105,086

114,808

34.5

34.7

12.2

16.4

26.4

19.6

1.8

1.7

6.8

8.4

2.1

1.9

Idea Cellular

Neutral

30,103

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

4,648

9,876

3,153

3,583

14.1

14.4

152.2

182.7

30.5

25.4

149.9

128.0

25.6

26.1

2.8

2.4

Bajaj Electricals

Accumulate

269

306

2,721

5,099

5,805

5.6

5.9

11.4

14.6

23.7

18.5

3.2

2.8

13.4

15.1

0.5

Finolex Cables

Neutral

421

6,446

2,883

3,115

12.0

12.1

14.2

18.6

29.7

22.7

15.8

13.8

15.8

14.6

2.0

1.8

Goodyear India*

Accumulate

594

684

1,370

1,598

1,704

10.4

10.2

49.4

52.6

12.0

11.3

55.5

48.7

18.2

17.0

0.6

77.2

Hitachi

Neutral

1,480

4,025

2,081

2,433

8.8

8.9

33.4

39.9

44.3

37.1

35.8

29.8

22.1

21.4

1.9

1.6

Jyothy Laboratories

Neutral

325

5,885

1,440

2,052

11.5

13.0

8.5

10.0

38.2

32.5

9.3

8.6

18.6

19.3

4.3

3.0

Page Industries

Neutral

14,783

16,489

2,450

3,124

20.1

17.6

299.0

310.0

49.4

47.7

329.3

251.3

47.1

87.5

6.8

5.4

Relaxo Footwears

Neutral

434

5,211

2,085

2,469

9.2

8.2

7.6

8.0

57.4

54.6

22.3

19.0

17.9

18.8

2.5

2.2

Siyaram Silk Mills

Accumulate

1,286

1,469

1,206

1,799

2,040

11.6

11.7

104.9

122.4

12.3

10.5

2.0

1.7

16.4

0.9

0.8

Styrolution ABS India*

Neutral

573

1,008

1,440

1,537

9.2

9.0

40.6

42.6

14.1

13.5

36.0

32.8

12.3

11.6

0.7

0.6

TVS Srichakra

Accumulate

2,704

2,932

2,070

2,304

2,614

13.7

13.8

231.1

266.6

11.7

10.1

303.8

239.2

33.9

29.3

0.9

0.8

HSIL

Neutral

347

2,509

2,384

2,515

15.8

16.3

15.3

19.4

22.7

17.9

22.5

19.4

7.8

9.3

1.2

1.1

Kirloskar Engines India

Neutral

297

4,295

2,554

2,800

9.9

10.0

10.5

12.1

28.3

24.6

11.8

11.2

10.7

11.7

1.3

1.2

Ltd

M M Forgings

Neutral

424

511

546

608

20.4

20.7

41.3

48.7

10.3

8.7

58.0

51.3

16.6

17.0

0.8

0.7

Banco Products (India)

Neutral

224

1,603

1,353

1,471

12.3

12.4

14.5

16.3

15.5

13.8

21.4

19.2

14.5

14.6

1.2

124.3

Competent Automobiles Neutral

208

128

1,137

1,256

3.1

2.7

28.0

23.6

7.4

8.8

40.0

36.1

14.3

11.5

0.1

www.angelbroking.com

Stock Watch

September 12, 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

1,353

2,020

1,995

2,165

10.7

10.4

69.8

80.6

19.4

16.8

77.3

67.2

16.6

16.5

1.0

0.9

Visaka Industries

Neutral

200

317

1,051

1,138

10.3

10.4

21.0

23.1

9.5

8.6

25.6

24.0

9.0

9.2

0.6

0.5

Transport Corporation of

Neutral

192

1,468

2,671

2,911

8.5

8.8

13.9

15.7

13.8

12.2

1.9

1.7

13.7

13.8

0.6

India

Elecon Engineering

Accumulate

647

1,482

1,660

13.7

14.5

3.9

5.8

15.2

10.2

3.6

3.3

7.8

10.9

0.8

0.7

Surya Roshni

Neutral

195

853

3,342

3,625

7.8

7.5

17.3

19.8

11.3

9.9

21.4

17.2

10.5

10.8

0.5

MT Educare

Neutral

132

527

366

417

17.7

18.2

9.4

10.8

14.1

12.3

3.1

2.7

22.2

22.3

1.4

1.2

Radico Khaitan

Buy

108

125

1,443

1,659

1,802

13.0

13.2

6.3

7.4

17.1

14.7

1.5

1.4

8.6

9.3

1.3

1.2

Garware Wall Ropes

Neutral

521

1,139

873

938

12.9

13.1

30.9

34.9

16.8

14.9

2.6

2.3

15.7

15.2

1.2

1.1

Wonderla Holidays

Neutral

405

2,286

287

355

38.0

40.0

11.3

14.2

35.8

28.5

5.1

4.5

21.4

23.9

7.7

6.2

Linc Pen & Plastics

Neutral

284

420

382

420

9.3

9.5

13.5

15.7

21.1

18.1

3.6

3.1

17.1

17.3

1.2

1.0

The Byke Hospitality

Neutral

161

644

287

384

20.5

7.6

10.7

21.1

15.0

4.4

3.6

20.7

23.5

2.3

1.7

Interglobe Aviation

Neutral

863

31,115

21,122

26,005

14.5

27.6

110.7

132.1

7.8

6.5

46.7

33.3

168.5

201.1

1.5

1.1

Coffee Day Enterprises

Neutral

238

4,909

2,964

3,260

20.5

21.2

4.7

8.0

29.8

2.8

2.5

5.5

8.5

2.1

1.8

Ltd

Navneet Education

Neutral

105

2,501

1,062

1,147

24.0

6.1

6.6

17.2

15.9

3.5

3.1

20.6

19.8

2.4

2.3

Navkar Corporation

Buy

191

265

2,724

408

612

42.9

42.3

6.8

11.5

28.2

16.6

2.0

1.8

6.9

10.5

7.5

5.0

UFO Moviez

Neutral

437

1,206

619

685

33.2

33.4

30.0

34.9

14.6

12.5

2.0

1.7

13.8

13.9

1.7

1.4

VRL Logistics

Neutral

294

2,685

1,902

2,119

16.7

16.6

14.6

16.8

20.2

17.5

4.4

3.9

21.9

22.2

1.5

1.3

Team Lease Serv.

Neutral

1,070

1,829

3,229

4,001

1.5

1.8

22.8

32.8

47.0

32.6

5.0

4.4

10.7

13.4

0.5

0.4

S H Kelkar & Co.

Neutral

314

4,537

1,036

1,160

15.1

15.0

6.1

7.2

51.4

43.7

5.5

5.0

10.7

11.5

4.4

3.9

Quick Heal

Neutral

230

1,610

408

495

27.3

27.0

7.7

8.8

29.7

26.1

2.8

9.3

10.6

3.2

2.6

Narayana Hrudaya

Neutral

308

6,294

1,873

2,166

11.5

11.7

2.6

4.0

116.5

77.7

7.1

6.5

6.1

8.3

3.5

3.0

Manpasand Bever.

Neutral

736

3,684

836

1,087

19.6

19.4

16.9

23.8

43.6

30.9

5.2

4.6

12.0

14.8

4.1

3.1

Parag Milk Foods

Neutral

335

2,820

1,919

2,231

9.3

9.6

9.5

12.9

35.5

25.9

5.5

4.5

15.5

17.5

1.6

1.4

Mirza International

Buy

113

1,085

1,024

1,148

18.0

6.9

8.0

13.1

11.3

2.2

1.9

16.6

16.2

1.3

1.1

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on September 09, 2016

www.angelbroking.com

Market Outlook

September 12, 2016

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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