Market Outlook
October 12, 2017
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open positive tracking global indices and SGX Nifty.
BSE Sensex
(0.3)
(90)
31,834
Nifty
(0.3)
(32)
9,985
U.S. stocks closed slightly higher after the release of the Federal Reserve monetary
policy meeting minutes. Gold stocks showed strength with the NYSE Arca Gold Bugs
Mid Cap
(0.8)
(131)
15,805
Index reversing earlier losses to close up 0.45 percent.
Small Cap
(1.1)
(182)
16,711
Bankex
(1.0)
(264)
27,124
UK stocks closed flat for the session as investors waited for the minutes of the US
Federal Reserve’s monetary policy meeting. Paper and packaging firm Mondi fell by
Global Indices
Chg (%)
(Pts)
(Close)
6.4 percent after the company cut its full-year guidance. Unilever rose 0.99 percent
after launching the €450m buyback of its Dutch preference shares.
Dow Jones
0.2
142
22,873
Nasdaq
0.2
16
6,604
Indian markets moved lower as investors waited for the second quarter earnings as
FTSE
(0.1)
(4)
4
7,534
well as industrial and inflation economic data. The Banking index lost ground during
Nikkei
(00.3
58
20,881
the session and closed down 0.97 percent. The Oil & Gas index was the major
gainer for the session and closed up 1.1 percent.
Hang Seng
(0.4)
(101)
28,390
Shanghai Com
0.2
5
3,388
News Analysis
TCS (CMP: `2,501 / TP: `2,651 /Upside: 6.0%)
Advances / Declines
BSE
NSE
Detailed analysis is on Pg2
Advances
1,934
1,521
Declines
1,846
1,188
Investor’s Ready Reckoner
Unchanged
192
80
Key Domestic & Global Indicator
Stock Watch: Latest investment recommendations on 150+ stocks
Volumes (` Cr)
Refer Pg7 onwards
BSE
4,119
Top Picks
NSE
31,335
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
Blue Star
Capital Goods Accumulate
805
867
7.7
#Net Inflows (` Cr)
Net
Mtd
Ytd
Dewan Housing FinanceFinancials
Buy
526
610
15.9
FII
(5(404)
(2(3,425)
4133,10
Asian Granito
Other
Buy
486
570
17.3
MFs
8198
4,3,784
1490,12
Navkar Corporation
Other
Buy
182
265
45.4
KEI Industries
Capital Goods
Accumulate
334
380
13.7
More Top Picks on Pg5
Top Gainer
Price (`)
Chg (%)
Il&Fstrans
180
6.0
Key Upcoming Events
Strtech
257
5.6
Previous
Consensus
Date
Region
Event Description
Reading
Expectations
Bhartiartl
403
5.0
Oct12, 2017 US
Initial Jobless claims
260.00
250.00
Petronet
258
4.9
Oct12, 2017 US
Producer Price Index (mom)
0.50
Adanitrans
203
4.9
Oct12, 2017 India
Imports YoY%
21.00
Oct13, 2017 India
Industrial Production YoY
1.20
2.70
Oct13, 2017 India
Exports YoY%
10.30
Top Loser
Price (`)
Chg (%)
More Events on Pg7
Religare
249
(9.9)
Marksans
46
(5.2)
Jmfinancil
168
(5.1)
Bomdyeing
225
(5.0)
Dhfl
526
(4.7)
#as on 11th Oct, 2017
Market Outlook
October 12, 2017
News Analysis
TCS (CMP: `2,501 / TP: `2,651 /Upside: 6.0%)
TCS is slated to announce its 2QFY2018 results today. We expect the company to
post 3.2% sequential growth in USD revenues to US$4,738mn. In rupee terms,
revenues are expected to come in at `30,465cr, up 3.0% qoq. EBIT margin is
expected to show an expansion of ~71bp qoq to end the period at 24.1% on
account of strong growth. Consequently, PAT is expected to be at `6,314cr, a rise
of 6.2% qoq. We maintain our accumulate rating on the stock with a target price
of `2,651.
Y/E
Sales OPM
PAT
EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
1,27,403
27.6
28,272
144.5
29.7
17.3
5.1
12.4
3.4
FY2018E
1,38,870
27.6
30,524
156.0
29.8
16.0
4.8
11.1
3.1
Economic and Political News
Iron ore and liquid cargo shipments lead traffic growth at major ports in
1HFY18
Net direct tax collections reach `3.86 lakh cr grow 16% YoY in 1HFY18
India may delay implementation of Basel III norms: SBI
Corporate News
Hero MotoCorp sells 20 lakh units in Q2FY18
Jet Airways to add 75-100 aircrafts to existing fleet
L&T Hydrocarbon Engineering, a subsidiary of L&T, wins `1,150cr contract
from ONGC
Dena Bank to raise up to `1,800 cr via QIP
HDFC Ltd to raise `2,500cr by issuing bonds on private placement basis to
boost housing finance business
Market Outlook
October 12, 2017
Quarterly Bloomberg Brokers Consensus Estimate
Tata Consultancy Services Ltd - Oct 12, 2017
Particulars ( ` cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY18 q-o-q (%)
Net sales
30,501
29,284
4.1
29,584
3.1
EBITDA
8,006
8,113
(1.3)
7,413
7.9
EBITDA margin (%)
26.2
27.7
25.1
Net profit
6,283
6,603
(4.8)
5,945
5.7
IndusInd Bank - Oct 12, 2017
Particulars ( `cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY17 q-o-q (%)
Net profit
884
704
25.5
836
(0.2)
Market Outlook
October 12, 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
22,007
1,841
2,079
13.0
more products in USA, which bodes for its international
business.
We expect the company would report strong profitability
Asian Granito
1,462
486
570
17.3
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
7,709
805
867
7.7
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
16,497
526
610
15.9
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
8,796
146
180
23.7
Increasing share of CASA will help in NIM
improvement.
High order book execution in EPC segment, rising B2C
KEI Industries
2,601
334
380
13.7
sales and higher exports to boost the revenues and
profitability
Expected to benefit from the lower capex requirement
Music Broadcast
2,252
395
434
10.0
and 15 year long radio broadcast licensing.
Massive capacity expansion along with rail advantage
Navkar Corporation
2,598
182
265
45.4
at ICD as well CFS augur well for the company
Strong brands and distribution network would boost
Siyaram Silk Mills
2,437
2,600
2,856
9.8
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
2,237
375
435
16.0
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
2,36,228
7,820
8,658
10.7
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
2,808
521
655
25.6
year; change in borrowing mix will help in NIM
improvement..
Source: Company, Angel Research
Market Outlook
October 12, 2017
Key Upcoming Events
Result Calendar
Date
Company
October 12, 2017
IndusInd Bank, TCS
October 13, 2017
Reliance Industries
Source: Bloomberg, Angel Research
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
US
Producer Price Index (mom)
% Change
Sep
0.50
India
Imports YoY%
% Change
Sep
21.00
Oct 13, 2017
5:30 PMIndia
Industrial Production YoY
% Change
Aug
1.20
2.70
India
Exports YoY%
% Change
Sep
10.30
12:00 PMIndia
Monthly Wholesale Prices YoY%
% Change
Sep
3.24
3.22
6:00 PMUS
Consumer price index (mom)
% Change
Sep
0.40
0.60
Oct 16, 2017
China
Exports YoY%
% Change
Sep
5.60
10.00
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)
0.20
2:00 PMUK
CPI (YoY)
% Change
Sep
2.90
Oct 18, 2017
6:00 PMUS
Housing Starts
Thousands
Sep
1,180.00
1,180.00
6:00 PMUS
Building permits
Thousands
Sep
1,272.00
1,220.00
2:00 PMUK
Jobless claims change
% Change
Sep
(2.80)
Source: Bloomberg, Angel Research
Market Outlook
October 12, 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 12, 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 11th Oct-17
Market Outlook
October 12, 2017
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
76,660
3.1
18.2
25.4
Russia
Micex
2,101
2.8
7.2
6.3
India
Nifty
9,985
0.5
2.2
14.6
China
Shanghai Composite
3,388
0.1
5.2
12.9
South Africa
Top 40
51,439
4.4
11.4
14.0
Mexico
Mexbol
50,140
(0.4)
(1.6)
5.0
Indonesia
LQ45
977
0.0
1.1
3.9
Malaysia
KLCI
1,757
(1.3)
(0.2)
5.8
Thailand
SET 50
1,097
4.7
10.6
13.9
USA
Dow Jones
22,873
3.7
6.2
26.1
UK
FTSE
7,534
1.6
1.6
8.0
Japan
Nikkei
20,881
7.7
4.8
24.8
Germany
DAX
12,971
5.4
2.7
23.5
France
CAC
5,362
3.6
2.4
18.6
Source: Bloomberg, Angel Research, data as of 11th Oct-17 p68in4
Stock Watch
October 12, 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
240
209
4,674
1,873
2,099
15.0
15.0
9.5
10.5
25.3
22.9
3.8
3.5
15.8
16.0
2.4
2.2
United Phosphorus
Neutral
813
-
41,306
18,922
21,949
18.0
18.5
36.2
45.6
22.5
17.8
4.7
3.9
22.7
23.8
2.3
2.0
Auto & Auto Ancillary
Ashok Leyland
Neutral
124
-
36,421
23,339
27,240
10.1
10.8
4.7
6.2
26.8
20.0
5.3
4.7
20.0
23.6
1.5
1.3
Bajaj Auto
Neutral
3,142
-
90,926
23,936
27,955
19.5
20.1
142.7
167.3
22.0
18.8
4.8
4.3
21.8
22.8
3.4
2.8
Bharat Forge
Buy
637
875
29,646
7,637
8,755
21.7
23.2
36.1
47.3
17.6
13.5
3.2
2.7
18.5
20.8
3.7
3.2
Eicher Motors
Neutral
31,243
-
85,052
19,043
22,837
19.5
19.9
835.4
1,019.0
37.4
30.7
14.0
10.8
40.9
37.8
4.3
3.6
Gabriel India
Neutral
198
-
2,842
1,782
2,033
9.7
10.2
7.1
8.9
27.9
22.4
5.6
4.8
21.0
22.2
1.5
1.3
Hero Motocorp
Accumulate
3,688
4,129
73,640
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
60
-
2,373
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
1,320
-
81,966
46,971
53,816
13.6
14.0
67.7
79.8
19.5
16.5
2.8
2.5
15.0
15.9
1.6
1.4
Maruti
Accumulate
7,820
8,658
236,228
81,825
101,245
15.0
15.0
283.5
356.0
27.6
22.0
6.0
4.9
21.9
22.4
2.6
2.0
Minda Industries
Neutral
813
-
7,028
4,328
5,084
11.0
11.9
27.3
36.4
29.9
22.3
6.3
5.0
23.1
25.6
1.7
1.4
Motherson Sumi
Neutral
353
-
74,260
55,937
64,445
10.8
11.4
16.9
21.1
20.9
16.8
4.7
4.8
25.2
25.4
1.4
1.2
Tata Motors
Neutral
415
-
119,897
303,167
343,649
11.8
13.8
33.1
54.7
12.6
7.6
2.1
1.6
16.9
23.0
0.4
0.4
TVS Motor
Neutral
683
-
32,456
13,992
16,216
9.0
9.4
17.1
20.3
40.1
33.7
10.6
8.2
29.7
27.7
2.3
1.9
Amara Raja Batteries
Buy
681
858
11,628
6,140
7,122
14.3
15.6
29.3
39.0
23.2
17.5
4.0
3.3
17.1
19.0
1.9
1.6
Exide Industries
Neutral
204
-
17,302
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
238
-
12,100
15,739
17,326
13.3
14.6
20.4
26.7
11.7
8.9
1.4
1.2
20.4
26.7
1.0
0.9
Ceat
Neutral
1,719
-
6,953
6,661
7,717
11.1
14.2
116.2
178.2
14.8
9.7
2.6
2.1
15.2
21.3
1.2
1.0
JK Tyres
Neutral
150
-
3,394
8,318
9,239
16.2
16.4
21.0
27.5
7.1
5.4
1.4
1.1
19.1
20.4
0.9
0.7
Swaraj Engines
Neutral
2,071
-
2,572
788
889
16.4
16.5
71.6
81.0
28.9
25.6
8.3
7.7
29.6
31.0
2.9
2.5
Subros
Neutral
241
-
1,445
1,855
2,135
11.6
11.8
10.3
14.7
23.5
16.5
3.6
3.1
15.8
19.1
1.0
0.8
Capital Goods
BEML
Neutral
1,698
-
7,071
4,286
5,194
7.1
8.2
42.9
58.1
39.6
29.2
3.3
3.0
7.6
8.7
1.7
1.4
Bharat Electronics
Neutral
166
-
40,761
10,258
12,470
19.6
19.5
7.3
8.6
22.7
19.3
0.4
0.4
20.4
21.9
3.5
2.8
Voltas
Neutral
523
-
17,297
6,778
8,004
9.6
11.0
17.1
22.4
30.6
23.3
7.3
6.4
17.7
19.8
2.2
1.9
BHEL
Neutral
85
-
31,133
33,200
39,167
6.8
9.5
6.2
11.2
13.7
7.6
0.6
0.6
4.6
8.0
0.5
0.4
Blue Star
Accumulate
805
867
7,709
5,220
6,207
6.3
6.6
16.8
22.3
47.9
36.1
9.5
8.4
19.9
23.3
1.4
1.2
CG Power and Industrial
Neutral
78
-
4,867
6,555
7,292
7.5
7.5
-
0.8
7,765.0
97.1
1.2
1.2
0.1
1.2
0.8
0.8
Solutions
Greaves Cotton
Neutral
134
-
3,283
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 12, 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
301
350
7,744
9,779
11,113
9.4
9.8
14.2
18.2
21.2
16.6
4.1
3.3
21.1
22.1
1.1
0.9
KEI Industries
Accumulate
334
380
2,601
3,001
3,391
10.0
10.0
13.0
16.1
25.7
20.8
4.7
3.9
18.2
18.7
1.0
0.9
Thermax
Neutral
928
-
11,054
4,125
4,747
10.3
10.8
26.7
31.5
34.8
29.5
3.9
3.6
11.2
12.0
2.4
2.1
VATech Wabag
Buy
591
681
3,224
3,867
4,126
9.6
10.0
34.9
39.8
16.9
14.8
2.8
2.4
17.7
17.5
0.9
0.8
Cement
ACC
Neutral
1,715
-
32,214
12,255
13,350
13.5
14.3
58.0
66.2
29.6
25.9
3.5
3.3
11.5
12.2
2.6
2.4
Ambuja Cements
Neutral
274
-
54,417
10,250
11,450
17.5
19.0
7.2
8.3
38.1
33.0
2.7
2.6
7.0
7.8
5.1
4.5
India Cements
Neutral
177
-
5,450
6,135
6,750
14.8
15.2
8.5
11.5
20.8
15.4
1.0
1.0
4.8
6.2
1.2
1.1
JK Cement
Neutral
979
-
6,847
4,150
4,775
19.2
20.0
49.0
63.5
20.0
15.4
3.2
2.7
17.0
18.5
2.1
1.8
J K Lakshmi Cement
Neutral
377
-
4,435
3,422
3,757
15.5
17.0
13.5
23.2
27.9
16.3
2.9
2.5
10.8
15.5
1.7
1.5
Orient Cement
Neutral
152
-
3,122
2,215
3,233
16.8
17.0
5.9
6.9
25.8
22.1
2.0
1.8
10.8
10.1
2.4
1.6
UltraTech Cement
Neutral
3,952
-
108,483
28,250
35,150
20.2
23.5
77.5
122.2
51.0
32.3
4.3
3.9
9.6
14.8
4.3
3.4
Construction
KNR Constructions
Neutral
206
-
2,898
1,846
2,203
14.5
14.5
12.1
13.7
17.0
15.1
0.9
0.8
17.5
16.7
1.6
1.3
Larsen & Toubro
Neutral
1,133
-
158,724
95,787
109,476
10.2
11.6
44.5
50.8
25.5
22.3
3.2
2.9
12.9
13.1
2.2
2.0
Gujarat Pipavav Port
Neutral
142
-
6,841
739
842
61.6
62.7
5.1
6.2
27.8
23.0
3.5
3.4
12.7
14.9
8.7
7.5
PNC Infratech
Neutral
146
-
3,739
2,040
2,935
13.0
13.0
6.4
9.0
22.8
16.2
0.6
0.5
9.7
12.2
1.8
1.3
Simplex Infra
Neutral
482
-
2,386
6,012
6,619
11.6
11.7
21.1
31.0
22.9
15.6
1.6
1.5
6.5
8.6
0.9
0.8
Sadbhav Engineering
Accumulate
279
298
4,783
3,823
4,426
10.7
10.8
10.3
11.8
27.1
23.6
3.2
2.8
10.1
10.5
1.6
1.4
NBCC
Neutral
221
-
19,913
9,099
12,706
6.4
6.4
7.3
9.6
30.4
23.1
1.3
1.1
27.5
30.5
2.0
1.5
MEP Infra
Neutral
96
-
1,557
2,403
2,910
18.3
16.8
2.4
6.1
40.7
15.8
15.4
10.4
35.2
55.8
1.8
1.5
SIPL
Neutral
97
-
3,417
2,060
2,390
46.8
47.7
(5.8)
(3.1)
3.6
4.2
(14.2)
(2.3)
6.4
6.0
Engineers India
Neutral
151
-
10,152
1,795
2,611
21.1
22.4
5.9
8.1
25.5
18.6
1.8
1.8
12.9
16.1
4.0
2.6
Financials
Axis Bank
Accumulate
516
580
123,608
32,558
35,843
3.5
3.2
27.8
41.0
18.5
12.6
2.0
1.8
11.4
14.9
-
-
Bank of Baroda
Neutral
138
-
31,901
22,533
26,079
2.4
2.4
12.0
20.9
11.5
6.6
0.8
0.7
6.6
11.0
-
-
Canara Bank
Neutral
305
-
18,223
17,925
20,235
2.0
2.1
18.5
36.5
16.5
8.4
0.6
0.6
3.4
6.2
-
-
Can Fin Homes
Neutral
2,553
-
6,797
586
741
3.5
3.5
107.8
141.0
23.7
18.1
5.2
4.2
24.1
25.6
-
-
Cholamandalam Inv. &
Accumulate
1,106
1,230
17,288
2,826
3,307
6.3
6.3
53.7
64.6
20.6
17.1
3.5
3.0
18.3
18.9
-
-
Fin. Co.
Dewan Housing Finance Buy
526
610
16,497
2,676
3,383
2.4
2.7
37.4
49.7
14.1
10.6
1.8
1.6
13.8
16.2
-
-
Equitas Holdings
Buy
151
235
5,118
1,125
1,380
9.6
9.8
1.5
6.0
100.7
25.2
2.3
2.1
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 12, 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
521
655
2,808
376
477
3.6
3.7
33.0
40.0
15.8
13.0
2.8
2.4
20.0
23.0
-
-
HDFC Bank
Neutral
1,790
-
462,173
55,236
63,253
4.5
4.4
68.9
82.4
26.0
21.7
4.5
3.8
18.7
18.5
-
-
ICICI Bank
Buy
267
315
171,503
42,361
51,378
3.6
3.9
18.4
25.7
14.6
10.4
1.6
1.5
11.3
15.0
-
-
Karur Vysya Bank
Buy
146
180
8,796
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
639
-
32,261
4,895
6,332
3.4
3.7
50.7
66.8
12.6
9.6
2.5
2.1
21.7
23.8
-
-
Punjab Natl.Bank
Neutral
132
-
28,025
23,708
25,758
2.1
2.1
5.9
16.4
22.4
8.0
0.7
0.6
3.0
8.3
-
-
RBL Bank
Neutral
509
-
21,029
2,309
2,888
2.6
2.5
16.4
19.1
31.1
26.7
3.9
3.5
13.3
13.8
-
-
Repco Home Finance
Buy
635
825
3,972
496
597
4.4
4.2
38.5
48.7
16.5
13.0
3.0
2.5
19.6
20.6
-
-
South Ind.Bank
Neutral
31
-
5,539
3,195
3,567
3.0
3.1
3.0
3.8
10.2
8.0
1.0
0.9
10.5
11.9
-
-
St Bk of India
Neutral
252
-
217,182
105,827
121,056
2.4
2.5
16.1
25.6
15.6
9.8
1.2
1.1
6.6
9.9
-
-
Union Bank
Neutral
126
-
9,149
14,650
16,225
2.3
2.3
23.1
32.5
5.5
3.9
0.4
0.4
7.1
9.2
-
-
Yes Bank
Neutral
363
-
83,086
11,088
13,138
3.0
2.9
84.0
99.3
4.3
3.7
0.7
0.6
16.3
16.8
-
-
FMCG
Akzo Nobel India
Neutral
1,835
-
8,801
3,164
3,607
13.8
13.7
58.6
67.9
31.3
27.0
7.7
6.8
24.5
25.1
2.6
2.3
Asian Paints
Neutral
1,160
-
111,310
17,603
20,615
18.6
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
4,379
-
52,568
9,690
11,278
14.8
15.4
84.0
101.0
52.1
43.4
19.0
15.1
40.6
39.0
5.4
4.6
Colgate
Neutral
1,087
-
29,561
4,420
5,074
24.9
25.3
28.6
32.8
38.0
33.1
15.0
12.1
43.8
40.5
6.4
5.6
Dabur India
Neutral
318
-
55,972
8,346
9,344
19.6
19.9
7.8
9.0
40.7
35.3
8.2
7.4
25.2
24.8
6.3
5.5
GlaxoSmith Con*
Neutral
4,965
-
20,882
5,072
5,760
18.2
18.4
176.3
199.2
28.2
24.9
6.0
5.4
21.2
21.7
3.4
3.0
Godrej Consumer
Neutral
978
-
66,637
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
1,217
-
263,504
37,077
41,508
20.3
21.8
5,189.9
6,318.5
0.2
0.2
37.1
31.7
74.8
82.0
7.0
6.2
ITC
Neutral
265
-
323,265
44,588
49,853
37.0
37.3
9.6
11.0
27.7
24.1
6.8
6.5
25.1
27.3
6.7
6.0
Marico
Neutral
315
-
40,611
6,788
7,766
18.5
19.2
7.1
8.5
44.3
37.0
15.5
13.3
36.9
38.0
5.8
5.1
Nestle*
Neutral
7,292
-
70,308
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
209
-
13,219
7,121
7,641
11.9
12.3
6.9
8.0
30.4
26.2
2.0
1.9
6.8
7.2
1.7
1.5
Procter & Gamble
Neutral
8,646
-
28,066
3,034
3,579
27.1
27.7
167.7
198.8
51.6
43.5
13.8
11.9
28.8
29.5
8.7
7.3
Hygiene
IT
HCL Tech^
Accumulate
908
1,014
129,571
52,342
57,053
20.9
20.9
62.8
67.6
14.5
13.4
3.2
2.8
22.4
20.6
2.1
1.9
Infosys
Buy
931
1,179
213,756
73,963
80,619
26.0
26.0
64.4
69.3
14.5
13.4
2.9
2.6
19.7
19.6
2.3
2.1
TCS
Accumulate
2,501
2,651
492,706
127,403
138,870
27.6
27.6
144.5
156.0
17.3
16.0
5.2
4.8
29.7
29.8
3.5
3.2
Tech Mahindra
Accumulate
466
533
45,501
31,015
33,496
15.0
15.0
35.6
38.1
13.1
12.2
2.2
2.1
17.0
16.3
1.3
1.1
Stock Watch
October 12, 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
291
-
141,450
58,536
61,858
20.3
20.3
18.2
19.1
16.0
15.2
2.5
2.2
14.6
13.4
2.3
2.2
Media
D B Corp
Neutral
375
-
6,891
2,404
2,625
30.5
31.5
23.7
26.9
15.8
13.9
3.7
3.2
23.5
22.8
2.7
2.5
HT Media
Neutral
94
-
2,198
2,589
2,830
15.1
15.4
8.3
10.9
11.4
8.7
0.9
0.8
8.4
10.4
0.4
0.3
Jagran Prakashan
Buy
177
225
5,777
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
784
-
30,880
3,238
3,789
51.9
55.1
30.9
38.0
25.4
20.6
7.2
6.3
30.0
31.0
9.0
7.6
Hindustan Media
Neutral
246
-
1,807
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
Buy
375
435
2,237
667
727
27.7
27.7
18.6
20.1
20.2
18.7
3.1
3.2
15.6
17.3
2.9
2.7
Music Broadcast Limited Accumulate
395
434
2,252
271
317
91.0
109.0
6.0
10.0
65.8
39.5
4.1
3.7
6.5
9.3
7.9
6.5
Metals & Mining
Coal India
Neutral
284
-
176,104
82,301
91,235
17.0
18.0
17.1
20.5
16.6
13.8
3.1
2.9
45.0
55.0
1.8
1.6
Hind. Zinc
Neutral
309
-
130,647
22,108
24,555
57.0
58.0
22.1
26.3
14.0
11.8
4.5
3.7
32.0
35.0
4.9
4.1
Hindalco
Neutral
249
-
55,933
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
257
-
62,050
64,500
68,245
21.1
21.5
20.1
21.2
12.8
12.1
2.3
2.0
-
-
1.7
1.6
NMDC
Neutral
119
-
37,777
10,209
11,450
47.0
48.0
11.1
12.1
10.8
9.9
1.5
1.4
-
-
3.2
2.9
SAIL
Neutral
55
-
22,674
54,100
63,555
3.0
10.0
(10.0)
1.5
36.6
0.7
0.7
-
-
1.4
1.2
Vedanta
Neutral
313
-
116,497
81,206
87,345
28.0
29.0
26.5
33.5
11.8
9.4
2.7
2.3
-
-
2.2
1.9
Tata Steel
Neutral
681
-
66,140
121,445
126,500
16.2
17.2
65.4
81.3
10.4
8.4
1.7
1.4
-
-
1.1
0.9
Oil & Gas
GAIL
Neutral
445
-
75,212
53,115
52,344
14.2
15.3
30.0
31.1
14.8
14.3
1.9
1.7
-
-
1.1
1.1
ONGC
Neutral
169
-
217,331
83,111
84,934
44.2
44.9
16.4
16.9
10.3
10.0
1.3
1.2
-
-
2.5
2.5
Indian Oil Corp
Neutral
418
-
203,025
396,116
432,560
8.5
8.8
40.1
42.2
10.4
9.9
1.8
1.6
-
-
0.7
0.6
Reliance Industries
Neutral
840
-
546,580
257,711
267,438
17.0
18.2
89.1
89.5
9.4
9.4
0.9
0.8
-
-
1.8
1.7
Pharmaceuticals
Alembic Pharma
Buy
497
600
9,362
3,903
4,584
18.2
19.2
21.8
27.2
22.8
18.3
4.2
3.5
19.8
20.6
2.4
2.1
Alkem Laboratories Ltd
Accumulate
1,841
2,079
22,007
6,320
7,341
17.5
19.8
72.7
96.6
25.3
19.1
4.5
3.8
16.7
18.7
3.4
2.9
Aurobindo Pharma
Accumulate
732
823
42,895
17,086
19,478
22.1
22.0
44.7
51.4
16.4
14.2
3.6
2.9
24.7
22.7
2.6
2.3
Aventis*
Neutral
4,126
-
9,502
2,508
2,862
16.8
16.8
139.9
153.8
29.5
26.8
4.3
3.5
23.5
25.8
3.4
2.8
Cadila Healthcare
Reduce
491
426
50,302
11,584
13,228
20.3
20.4
18.7
21.3
26.3
23.1
5.9
4.8
24.6
22.9
4.2
3.6
Cipla
Sell
585
458
47,070
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
2,375
-
39,374
15,844
17,973
17.6
18.2
91.7
111.0
25.9
21.4
2.9
2.7
11.9
13.0
2.7
2.4
GSK Pharma*
Neutral
2,389
-
20,233
3,260
3,651
15.0
18.0
46.1
58.6
51.8
40.8
10.6
11.0
20.0
26.5
6.1
5.6
Indoco Remedies
Sell
255
153
2,350
1,154
1,310
14.9
14.9
11.3
12.7
22.6
20.1
3.2
2.8
15.0
15.0
2.2
1.8
Stock Watch
October 12, 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
Accumulate
510
540
6,435
3,593
4,022
14.5
15.5
19.4
25.2
26.3
20.2
2.4
2.2
9.5
11.2
1.9
1.7
Lupin
Buy
1,046
1,467
47,235
18,657
21,289
21.3
23.3
52.8
66.7
19.8
15.7
3.0
2.5
16.3
17.5
2.5
2.1
Natco Pharma
Accumulate
988
1,057
17,215
1,886
2,016
32.3
29.5
23.2
22.0
42.7
44.8
8.9
7.9
20.9
17.6
9.0
8.4
Sun Pharma
Accumulate
526
558
126,152
32,899
36,451
26.9
25.4
31.6
32.3
16.6
16.3
2.9
2.5
18.7
18.8
3.5
3.0
Syngene International
Accumulate
490
557
9,790
1,402
1,823
32.8
36.0
15.9
20.7
30.8
23.7
5.8
4.7
18.7
20.0
7.0
5.3
Power
Tata Power
Neutral
81
-
21,909
32,547
33,806
20.5
20.5
4.7
5.4
17.2
15.1
1.6
1.4
10.5
10.5
1.7
1.6
NTPC
Neutral
175
-
144,213
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
203
223
106,070
29,183
32,946
89.7
90.0
18.0
20.8
11.3
9.8
1.9
1.7
17.7
18.2
7.6
7.0
Real Estate
Prestige Estate
Neutral
291
-
10,924
4,607
5,146
21.0
22.2
7.9
9.8
36.9
29.7
2.3
2.1
10.3
12.0
3.5
3.2
MLIFE
Accumulate
469
522
2,405
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
403
-
161,255
97,903
105,233
36.0
36.3
9.3
11.1
43.4
36.5
2.1
2.0
5.0
5.6
2.6
2.3
Idea Cellular
Neutral
73
-
26,204
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
4,205
-
8,935
3,244
3,723
14.9
16.1
167.5
209.4
25.1
20.1
5.5
4.6
23.7
24.8
2.4
2.0
Asian Granito
Buy
486
570
1,462
1,169
1,286
12.5
12.5
16.0
19.7
30.4
24.7
3.3
2.9
10.7
11.6
1.5
1.3
Bajaj Electricals
Neutral
377
-
3,828
4,646
5,301
6.7
7.6
16.1
22.3
23.4
16.9
3.8
3.3
16.4
19.2
0.8
0.7
Banco Products (India)
Neutral
215
-
1,540
1,530
1,695
13.2
12.7
19.0
20.0
11.3
10.8
1.8
1.6
0.2
0.2
0.9
101.8
Coffee Day Enterprises
Neutral
217
-
4,460
3,494
3,913
17.4
18.0
4.8
5.7
-
38.0
1.9
1.8
-
0.1
1.7
1.5
Ltd
Elecon Engineering
Neutral
66
-
735
171
201
15.0
16.2
36.0
43.0
1.8
1.5
0.2
0.1
0.1
0.1
3.7
3.1
Garware Wall Ropes
Neutral
910
-
1,991
928
1,003
15.2
15.2
39.4
43.2
23.1
21.1
3.8
3.3
16.5
15.4
2.0
1.8
Goodyear India*
Neutral
814
-
1,878
1,717
1,866
11.8
12.3
47.9
49.8
17.0
16.4
2.6
2.3
15.6
15.7
0.8
112.9
Hitachi
Neutral
2,070
-
5,628
2,355
2,715
10.3
10.8
49.0
60.9
42.2
34.0
9.9
7.8
0.2
0.2
2.4
2.1
HSIL
Neutral
436
-
3,149
2,240
2,670
14.6
15.0
17.0
22.0
25.6
19.8
2.1
2.0
0.1
0.1
1.6
1.3
Interglobe Aviation
Neutral
1,109
-
40,113
22,570
27,955
14.2
15.0
63.6
81.8
17.5
13.6
9.2
7.8
0.5
0.6
1.5
1.1
Jyothy Laboratories
Neutral
386
-
7,006
1,781
2,044
14.1
15.0
9.4
10.5
41.2
36.7
8.8
8.2
0.2
0.2
4.2
3.6
Linc Pen & Plastics
Neutral
249
-
368
420
462
9.3
9.3
15.3
17.1
16.3
14.5
2.7
2.8
16.9
19.5
0.9
0.8
M M Forgings
Neutral
787
-
950
542
642
20.1
21.0
41.6
56.8
18.9
13.9
2.6
2.2
0.1
0.2
2.2
1.9
Mirza International
Neutral
161
-
1,936
1,148
1,285
18.0
18.0
8.0
9.4
20.0
17.2
3.3
2.8
16.3
16.1
1.8
1.6
Navkar Corporation
Buy
182
265
2,598
561
617
41.5
41.5
11.5
12.7
15.8
14.3
1.7
1.5
10.5
10.4
5.3
4.6
Nilkamal
Neutral
1,606
-
2,397
2,317
2,525
11.4
11.1
96.0
105.0
16.7
15.3
2.8
2.5
0.2
0.2
1.0
0.9
Stock Watch
October 12, 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
256
-
2,151
1,987
2,379
7.6
9.0
12.4
18.3
20.6
14.0
2.9
2.5
8.2
13.2
1.2
1.0
Radico Khaitan
Neutral
172
-
2,287
1,811
1,992
13.2
13.2
8.1
8.8
21.2
19.5
2.1
2.3
10.1
12.0
1.6
1.4
Relaxo Footwears
Neutral
511
-
6,134
1,981
2,310
13.7
14.5
12.0
15.5
42.6
32.9
8.3
6.7
0.2
0.2
3.2
2.7
Siyaram Silk Mills
Accumulate
2,600
2,856
2,437
1,769
1,981
12.7
12.7
113.1
131.1
23.0
19.8
3.6
3.1
15.5
15.5
1.6
1.4
Styrolution ABS India* Neutral
1,011
-
1,778
1,800
1,980
8.0
8.1
42.0
46.2
24.1
21.9
2.7
2.4
0.1
0.1
1.1
1.0
Surya Roshni
Neutral
303
-
1,328
4,870
5,320
7.7
7.8
22.8
28.1
13.3
10.8
1.8
1.5
0.1
0.1
0.5
0.4
TVS Srichakra
Neutral
3,007
-
2,302
2,729
2,893
12.7
12.5
248.5
265.0
12.1
11.4
3.4
2.8
0.3
0.3
0.8
0.8
Visaka Industries
Neutral
669
-
1,063
1,104
1,214
12.1
12.6
31.0
37.9
21.6
17.7
2.6
2.4
0.1
0.1
1.2
1.1
VIP Industries
Accumulate
264
300
3,725
1,450
1,693
10.4
10.5
6.5
7.8
40.3
33.8
8.5
7.4
21.1
22.1
2.6
2.2
Navin Fluorine
Neutral
721
-
3,555
945
1,154
22.4
22.6
28.7
34.8
25.1
20.8
4.2
3.6
-
-
3.3
2.6
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 11, 2017
Market Outlook
October 12, 2017
Research Team Tel: 022 - 39357800
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India
Limited,Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with
CDSL and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a
registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or
co-managed public offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
