Market Outlook
September 13, 2017
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open flat tracking global indices and SGX Nifty.
BSE Sensex
0.9
277
32,159
The US markets rose for the 2nd day during the week largely driven by financial
Nifty
0.9
87
10,093
services companies amid hopes that there would be more tax reform by the year
end. Tech stocks were also in limelight backed by the Apple’s highly anticipated
Mid Cap
1.1
171
16,037
product launch. Apple launched a series of new product including the iPhone8. With
Small Cap
1.0
166
16,618
reducing geopolitical tension the US market also seems will remain in a positive
territory for the next couple of treading session. Majority of the European markets
Bankex
0.4
100
27,904
ended the day with decent gain amid positive US markets and reducing geopolitical
concerns.
Global Indices
Chg (%)
(Pts)
(Close)
Dow Jones
0.3
61
22,119
Indian markets continued their upward journey and ended the day with strong
Nasdaq
0.3
22
6,454
gains. Positive global cues together with reducing geopolitical concerns attracted
investors and traders in the domestic market. However, the retail inflation which
FTSE
(0.2)
(13)
7,400
has started inching up might be a cause of concern for the near term for the
Nikkei
1.2
231
19,777
markets. Nevertheless strong inflows of funds will continue to keep the market
buoyant in the near term.
Hang Seng
0.1
17
27,972
Shanghai Com
0.1
3
3,379
News Analysis
Force Motors enters into JV with Rolls Royece
Advances / Declines
BSE
NSE
Detailed analysis is on Pg2
Advances
1,457
1,009
Declines
1,168
688
Investor’s Ready Reckoner
Unchanged
153
75
Key Domestic & Global Indicators
Stock Watch: Latest investment recommendations on 150+ stocks
Volumes (` Cr)
Refer Pg7 onwards
BSE
3,762
Top Picks
NSE
28,287
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
Blue Star
Capital Goods
Accumulate
788
807
2.4
#Net Inflows (` Cr)
Net
Mtd
Ytd
Dewan Housing FinanceFinancials
Accumulate
558
610
9.4
FII
(1,231)
(4,767)
42,522
Mahindra Lifespace
Real Estate
Buy
435
522
20.0
MFs
1,313
3,568
72,455
Navkar Corporation
Others
Buy
193
265
37.3
KEI Industries
Capital Goods
Buy
312
371
18.8
More Top Picks on Pg5
Top Gainers
Price (`)
Chg (%)
Divislab
805
11.8
Key Upcoming Events
Adanitrans
147
10.0
Previous
Consensus
Date
Region
Event Description
Reading
Expectations
Godrejprop
653
8.5
Sep 13, 2017 US
Producer Price Index (mom)
(0.20)
Sundrmfast
470
8.1
Sep 13, 2017 UK
Jobless claims change
(4.20)
Gdl
235
7.3
Sep 14, 2017 US
Initial Jobless claims
298.00
300.00
Sep 14, 2017 US
Consumer price index (mom)
0.10
0.30
Sep 14, 2017 China
Industrial Production (YoY)
6.40
6.60
Top Losers
Price (`)
Chg (%)
More Events on Pg7
Advenzymes
279
(4.9)
Centralbk
99
(3.6)
Indusindbk
1,742
(2.7)
Cgpower
85
(2.1)
Hathway
32
(1.8)
#as on 12th Sep, 2017
Market Outlook
September 13, 2017
News Analysis
Force Motors enters into JV with Rolls-Royece
Force Motors Ltd has announced that it has tied up with Rolls-Royece Power
Systems AG to form an Indian JV company aimed at producing engines for power
generation and rail application. As per the plan the new JV will produce complete
power generation systems including associated spare parts for Indian and global
markets. The company intends to build a dedicated facility under the JV at its
existing premise at Chakan, Pune.
Force Motors had a revenue of ` 3495 cr and PAT of `180 cr for FY17. The
company is already present in the personal vehicle, Commercial Vehicle and
Agricultural Vehicle segment and entering into new areas of growth. The Traveler
range of the LCV of the company is a strong player in its own segment.
Economic and Political News
Cabinet approves ` 3000 cr project for oil, gas reserves appraisal.
The central govt has hiked DA to 5%, benefiting 50 lakh central govt and
employees and 61 lakh pensioners.
Bill to double tax free gratuity to ` 20 lakh for Govt, Private employees cleared
Retail inflation hits 5 months high of 3.36% on higher vegetable prices
Corporate News
Tata Sons to raise stake in Tata Global Beverages and Tata Chemicals
Tata Motor’s Global sales volume up 9% in August at 94,201 units
GMR Eyes airport projects in Europe, South East Asia and East Asia
Phoenix mills buys stake in four malls for `1350 cr
Market Outlook
September 13, 2017
Top Picks
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
Strong growth in domestic business due to its leadership
in acute therapeutic segment. Alkem expects to launch
Alkem Laboratories
21,507
1,799
2,161
20.1
more products in USA, which bodes for its international
business.
We expect the company would report strong profitability
Asian Granito
1,365
454
493
8.7
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
7,546
788
807
2.4
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
17,490
558
610
9.4
presence in tier-II & III cities where the growth
opportunity is immense.
Loan growth is likely to pick up after a sluggish FY17.
Karur Vysya Bank
9,249
153
180
17.6
Lower credit cost will help in strong bottom-line growth.
Increasing share of CASA will help in NIM improvement.
High order book execution in EPC segment, rising B2C
KEI Industries
2,430
312
371
18.8
sales and higher exports to boost the revenues and
profitability
Speedier execution and speedier sales, strong revenue
Mahindra Lifespace
2,233
435
522
20.0
visibility in short-to-long run, attractive valuations
Expected to benefit from the lower capex requirement
Music Broadcast
2,257
396
434
9.7
and 15 year long radio broadcast licensing.
Massive capacity expansion along with rail advantage at
Navkar Corporation
2,752
193
265
37.3
ICD as well CFS augurs well for the company
Strong brands and distribution network would boost
Siyaram Silk Mills
2,200
2,347
2,500
6.5
growth 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
TV Today Network
1,574
264
344
30.4
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
2,46,531
8,161
8,658
6.1
plant will also enable higher operating leverage which
will be margin accretive.
Source: Company, Angel Research
Market Outlook
September 13, 2017
Key Upcoming Events
Global economic events release calendar
Bl oomberg Data
D ate
Time
C ountry
Event Description
Unit
Period
L ast Reporte d
E stimate d
Sep 13, 2017
US
Producer Price Index (mom)
% Change
Aug
(0.20)
2:00 PM UK
Joble ss claims change
% Change
Aug
(4.20)
Sep 14, 2017
6:00 PM US
Initial Jobless claims
Thousands
Sep 9
298.00
300.00
6:00 PM US
Consumer price index (mom)
% Change
Aug
0.10
0.30
7:30 AM China
Industrial Production (YoY)
% Change
Aug
6.40
6.60
12: 00 PM India
Monthly Wholesale Prices YoY%
% Change
Aug
1.88
3.20
4:30 PM UK
BOE Announce s rate s
% Ratio
Sep 14
0.25
0.25
Sep 15, 2017
India
Imports YoY%
% Change
Aug
15.40
India
Exports YoY%
% Change
Aug
3.94
6:45 PM US
Industrial Production
%
Aug
0.19
0.10
Sep 18, 2017
2:30 PM Euro Zone
Euro-Zone CPI (YoY)
%
Aug F
1.50
Sep 19, 2017
6:00 PM US
Housi ng Starts
Thousands
Aug
1,155.00
1,180.00
6:00 PM US
Building permits
Thousands
Aug
1,230.00
1,210.00
Sep 20, 2017
7:30 PM US
Existing home sales
Million
Aug
5.44
5.48
11: 30 PM US
FOMC rate decision
%
Sep 20
1.25
1.25
Sep 21, 2017
1:00 PM Germany
PMI Services
Value
Sep P
53.50
Sep 22, 2017
7:30 PM Euro Zone
Euro-Zone Consumer Confidence
Value
Sep A
(1.50)
1:00 PM Germany
PMI Manufacturing
Value
Sep P
59.30
Sep 26, 2017
7:30 PM US
Consumer Confidence
S.A./ 1985=100
Sep
122.90
7:30 PM US
New home sales
Thousands
Aug
571.00
Sep 28, 2017
6:00 PM US
GDP Qoq (Annualise d)
% Change
2Q T
3.00
Sep 29, 2017
1:25 PM Germany
Unempl oyment change (000's)
Thousands
Sep
(5.00)
2:00 PM UK
GDP (YoY)
% Change
2Q F
1.70
Sep 30, 2017
6:30 AM China
PMI Manufacturing
Value
Sep
51.70
Source: Bloomberg, Angel Research
Market Outlook
September 13, 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
4.2
7.9
4.0
7.6
7.5
8.0
7.3
7.2
4.0
3.5
3.4
7.0
2.8
7.0
6.1
6.1
3.0
2.4
5.7
6.0
2.0
1.2
5.0
1.0
4.0
-
3.0
(0.1)
(1.0)
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
(%)
6.0
54.0
5.1
52.0
5.0
4.3
4.2
3.9
50.0
3.6
3.7
4.0
3.4
3.2
3.0
48.0
3.0
2.4
2.2
46.0
2.0
1.5
44.0
1.0
42.0
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
(10.0)
3.50
(20.0)
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
Market Outlook
September 13, 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
1.7
1.7
2.0
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
Market Outlook
September 13, 2017
Exhibit 4: Relative performance of indices across globe
Returns (%)
C ountry
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
74,319
9.8
19.5
23.6
Russia
Micex
2,044
5.3
11.4
2.2
India
Nifty
10,006
1.9
4.4
13.2
China
Shanghai Composite
3,376
5.3
7.9
9.5
South Africa
Top 40
49,628
2.5
10.6
6.9
Mexico
Mexbol
50,359
(1.1)
2.7
7.8
Indonesia
LQ45
978
0.9
1.7
4.3
Malaysia
KLCI
1,783
0.3
(0.3)
6.2
Thailand
SET 50
1,047
5.0
6.4
10.5
USA
Dow Jones
22,057
0.0
3.7
20.4
UK
FTSE
7,414
(1.1)
(1.3)
11.2
Japan
Nikkei
19,546
(1.0)
(2.3)
15.5
Germany
DAX
12,475
4.4
(2.0)
22.1
France
CAC
5,177
2.9
(0.7)
18.7
Source: Bloomberg, Angel Research
Stock Watch
September 13, 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
223
209
4,336
1,873
2,099
15.0
15.0
9.5
10.5
23.5
21.2
3.6
3.2
15.8
16.0
2.2
2.0
United Phosphorus
Neutral
815
-
41,382
18,922
21,949
18.0
18.5
36.2
45.6
22.5
17.9
4.7
3.9
22.7
23.8
2.3
2.0
Auto & Auto Ancillary
Ashok Leyland
Accumulate
118
127
34,606
23,339
27,240
10.1
10.8
4.7
6.2
25.4
19.0
5.1
4.5
20.0
23.6
1.4
1.2
Bajaj Auto
Accumulate
2,933
3,151
84,883
23,936
27,955
19.5
20.1
142.7
167.3
20.6
17.5
4.5
4.0
21.8
22.8
3.1
2.6
Bharat Forge
Neutral
1,228
-
28,577
7,637
8,755
21.7
23.2
36.1
47.3
34.0
26.0
6.1
5.2
18.5
20.8
3.6
3.1
Eicher Motors
Neutral
32,582
-
88,697
19,043
22,837
19.5
19.9
835.4
1,019.0
39.0
32.0
14.6
11.2
40.9
37.8
4.5
3.7
Gabriel India
Neutral
210
-
3,021
1,782
2,033
9.7
10.2
7.1
8.9
29.6
23.8
6.0
5.1
21.0
22.2
1.6
1.4
Hero Motocorp
Accumulate
3,918
4,129
78,232
32,239
36,878
16.0
15.6
184.4
206.5
21.3
19.0
6.7
5.9
31.3
30.7
2.2
1.9
Jamna Auto Industries Neutral
252
-
2,008
1,441
1,662
14.4
14.8
13.9
17.6
18.1
14.3
5.0
4.0
30.0
31.0
1.4
1.2
Mahindra and Mahindra Neutral
1,302
-
80,851
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
8,161
8,658
246,531
81,825
101,245
15.0
15.0
283.5
356.0
28.8
22.9
6.3
5.1
21.9
22.4
2.7
2.1
Minda Industries
Neutral
874
-
7,550
4,328
5,084
11.0
11.9
27.3
36.4
32.1
24.0
6.8
5.3
23.1
25.6
1.8
1.6
Motherson Sumi
Neutral
337
-
71,007
55,937
64,445
10.8
11.4
16.9
21.1
20.0
16.0
4.5
4.6
25.2
25.4
1.3
1.1
Tata Motors
Neutral
387
-
111,798
303,167
343,649
11.8
13.8
33.1
54.7
11.7
7.1
1.9
1.5
16.9
23.0
0.4
0.3
TVS Motor
Neutral
641
-
30,467
13,992
16,216
9.0
9.4
17.1
20.3
37.6
31.6
10.0
7.7
29.7
27.7
2.1
1.8
Amara Raja Batteries
Accumulate
798
858
13,634
6,140
7,122
14.3
15.6
29.3
39.0
27.2
20.5
4.7
3.9
17.1
19.0
2.2
1.9
Exide Industries
Neutral
226
-
19,210
8,689
9,854
15.1
15.2
9.7
11.0
23.4
20.6
4.2
3.7
15.7
16.1
1.9
1.7
Apollo Tyres
Neutral
263
-
13,403
15,739
17,326
13.3
14.6
20.4
26.7
12.9
9.9
1.6
1.4
20.4
26.7
1.1
1.0
Ceat
Neutral
1,778
-
7,190
6,661
7,717
11.1
14.2
116.2
178.2
15.3
10.0
2.7
2.2
15.2
21.3
1.2
1.0
JK Tyres
Neutral
154
-
3,493
8,318
9,239
16.2
16.4
21.0
27.5
7.4
5.6
1.4
1.2
19.1
20.4
0.9
0.7
Swaraj Engines
Neutral
2,035
-
2,528
788
889
16.4
16.5
71.6
81.0
28.4
25.1
8.2
7.6
29.6
31.0
2.9
2.5
Subros
Neutral
235
-
1,410
1,855
2,135
11.6
11.8
10.3
14.7
22.9
16.0
3.5
3.0
15.8
19.1
1.0
0.8
Capital Goods
BEML
Neutral
1,885
-
7,850
4,286
5,194
7.1
8.2
42.9
58.1
43.9
32.5
3.6
3.3
7.6
8.7
1.9
1.5
Bharat Electronics
Neutral
198
-
44,125
10,258
12,470
19.6
19.5
7.3
8.6
27.1
23.0
0.5
0.5
20.4
21.9
3.8
3.1
Voltas
Neutral
561
-
18,573
6,778
8,004
9.6
11.0
17.1
22.4
32.8
25.1
7.8
6.9
17.7
19.8
2.4
2.1
BHEL
Neutral
132
-
32,321
33,200
39,167
6.8
9.5
6.2
11.2
21.3
11.8
1.0
0.9
4.6
8.0
0.6
0.4
Blue Star
Accumulate
788
850
7,546
5,101
5,997
6.0
7.0
17.9
26.6
44.0
29.6
9.4
8.6
21.9
29.0
1.5
1.3
CG Power and Industrial
Neutral
85
-
5,343
6,555
7,292
7.5
7.5
-
0.8
8,525.0
106.6
1.3
1.3
0.1
1.2
0.9
0.8
Solutions
Greaves Cotton
Neutral
145
-
3,530
1,778
1,993
14.7
15.1
8.1
9.1
17.9
15.9
4.0
3.7
21.8
23.6
1.8
1.6
Stock Watch
September 13, 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
Accumulate
327
350
8,411
9,779
11,113
9.4
9.8
14.2
18.2
23.0
18.0
4.4
3.6
21.1
22.1
1.1
1.0
KEI Industries
Buy
312
371
2,430
3,001
3,391
10.0
10.0
13.0
16.1
24.0
19.4
4.4
3.6
18.2
18.7
1.0
0.9
Thermax
Neutral
888
-
10,582
4,125
4,747
10.3
10.8
26.7
31.5
33.3
28.2
3.7
3.4
11.2
12.0
2.3
2.0
VATech Wabag
Accumulate
627
681
3,422
3,867
4,126
9.6
10.0
34.9
39.8
18.0
15.8
3.0
2.6
17.7
17.5
0.9
0.8
Cement
ACC
Neutral
1,848
-
34,700
12,255
13,350
13.5
14.3
58.0
66.2
31.9
27.9
3.8
3.5
11.5
12.2
2.8
2.6
Ambuja Cements
Neutral
289
-
57,355
10,250
11,450
17.5
19.0
7.2
8.3
40.1
34.8
2.9
2.7
7.0
7.8
5.4
4.7
India Cements
Neutral
192
-
5,924
6,135
6,750
14.8
15.2
8.5
11.5
22.6
16.7
1.1
1.1
4.8
6.2
1.3
1.1
JK Cement
Neutral
1,040
-
7,273
4,150
4,775
19.2
20.0
49.0
63.5
21.2
16.4
3.4
2.9
17.0
18.5
2.2
1.9
J K Lakshmi Cement
Neutral
429
-
5,046
3,422
3,757
15.5
17.0
13.5
23.2
31.8
18.5
3.3
2.8
10.8
15.5
1.9
1.6
Orient Cement
Neutral
162
-
3,323
2,215
3,233
16.8
17.0
5.9
6.9
27.5
23.5
2.1
1.9
10.8
10.1
2.5
1.7
UltraTech Cement
Neutral
4,222
-
115,912
28,250
35,150
20.2
23.5
77.5
122.2
54.5
34.6
4.6
4.2
9.6
14.8
4.6
3.7
Construction
KNR Constructions
Neutral
201
-
2,822
1,846
2,203
14.5
14.5
12.1
13.7
16.6
14.7
0.9
0.8
17.5
16.7
1.6
1.3
Larsen & Toubro
Neutral
1,228
-
172,036
95,787
109,476
10.2
11.6
44.5
50.8
27.6
24.2
3.5
3.2
12.9
13.1
2.3
2.1
Gujarat Pipavav Port
Neutral
141
-
6,807
739
842
61.6
62.7
5.1
6.2
27.6
22.9
3.4
3.4
12.7
14.9
8.7
7.5
PNC Infratech
Accumulate
134
143
3,448
2,040
2,935
13.0
13.0
6.4
9.0
21.0
14.9
0.5
0.5
9.7
12.2
1.7
1.2
Simplex Infra
Neutral
468
-
2,317
6,012
6,619
11.6
11.7
21.1
31.0
22.3
15.1
1.6
1.4
6.5
8.6
0.9
0.8
Sadbhav Engineering
Neutral
295
-
5,066
3,823
4,426
10.7
10.8
10.3
11.8
28.7
25.0
3.4
3.0
10.1
10.5
1.6
1.4
NBCC
Neutral
214
-
19,215
9,099
12,706
6.4
6.4
7.3
9.6
29.3
22.3
1.3
1.0
27.5
30.5
2.0
1.4
MEP Infra
Neutral
101
-
1,642
2,403
2,910
18.3
16.8
2.4
6.1
42.9
16.6
16.3
11.0
35.2
55.8
1.8
1.5
SIPL
Neutral
100
-
3,522
2,060
2,390
46.8
47.7
(5.8)
(3.1)
3.8
4.3
(14.2)
(2.3)
6.5
6.1
Engineers India
Neutral
159
-
10,728
1,795
2,611
21.1
22.4
5.9
8.1
27.0
19.7
1.9
1.9
12.9
16.1
4.4
2.8
Financials
Axis Bank
Buy
496
580
118,812
32,558
35,843
3.5
3.2
27.8
41.0
17.8
12.1
1.9
1.7
11.4
14.9
-
-
Bank of Baroda
Neutral
142
-
32,638
22,533
26,079
2.4
2.4
12.0
20.9
11.8
6.8
0.8
0.7
6.6
11.0
-
-
Canara Bank
Neutral
338
-
20,206
17,925
20,235
2.0
2.1
18.5
36.5
18.3
9.3
0.7
0.7
3.4
6.2
-
-
Can Fin Homes
Neutral
2,843
-
7,567
586
741
3.5
3.5
107.8
141.0
26.4
20.2
5.8
4.7
24.1
25.6
-
-
Cholamandalam Inv. &
Neutral
1,189
-
18,581
2,826
3,307
6.3
6.3
53.7
64.6
22.2
18.4
3.8
3.2
18.3
18.9
-
-
Fin. Co.
Dewan Housing Finance Accumulate
558
610
17,490
2,676
3,383
2.4
2.7
37.4
49.7
14.9
11.2
2.0
1.7
13.8
16.2
-
-
Equitas Holdings
Buy
171
235
5,787
1,125
1,380
9.6
9.8
1.5
6.0
113.9
28.5
2.6
2.4
2.4
8.2
-
-
Federal Bank
Accumulate
114
125
22,304
4,896
5,930
2.8
3.1
5.4
7.6
21.3
15.1
1.8
1.7
8.5
11.0
-
-
Stock Watch
September 13, 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
HDFC Bank
Neutral
1,834
-
473,466
55,236
63,253
4.5
4.4
68.9
82.4
26.6
22.3
4.6
3.9
18.7
18.5
-
-
ICICI Bank
Accumulate
291
315
186,766
42,361
51,378
3.6
3.9
18.4
25.7
15.8
11.3
1.7
1.7
11.3
15.0
-
-
Karur Vysya Bank
Buy
153
180
9,249
3,289
3,630
3.7
3.9
10.8
14.1
14.1
10.9
1.7
1.5
12.5
14.7
-
-
LIC Housing Finance
Neutral
660
-
33,315
4,895
6,332
3.4
3.7
50.7
66.8
13.0
9.9
2.6
2.1
21.7
23.8
-
-
Punjab Natl.Bank
Neutral
141
-
30,100
23,708
25,758
2.1
2.1
5.9
16.4
24.1
8.6
0.7
0.7
3.0
8.3
-
-
RBL Bank
Neutral
540
-
22,305
2,309
2,888
2.6
2.5
16.4
19.1
33.0
28.3
4.1
3.7
13.3
13.8
-
-
Repco Home Finance
Buy
675
825
4,224
496
597
4.4
4.2
38.5
48.7
17.6
13.9
3.2
2.6
19.6
20.6
-
-
South Ind.Bank
Neutral
29
-
5,278
3,195
3,567
3.0
3.1
3.0
3.8
9.7
7.6
1.0
0.9
10.5
11.9
-
-
St Bk of India
Neutral
274
-
236,087
105,827
121,056
2.4
2.5
16.1
25.6
17.0
10.7
1.3
1.2
6.6
9.9
-
-
Union Bank
Neutral
134
-
9,763
14,650
16,225
2.3
2.3
23.1
32.5
5.8
4.1
0.4
0.4
7.1
9.2
-
-
Yes Bank
Neutral
1,852
-
84,813
11,088
13,138
3.0
2.9
84.0
99.3
22.0
18.6
3.4
2.9
16.3
16.8
-
-
FMCG
Akzo Nobel India
Neutral
1,860
-
8,921
3,164
3,607
13.8
13.7
58.6
67.9
31.8
27.4
7.8
6.9
24.5
25.1
2.7
2.3
Asian Paints
Neutral
1,255
-
120,399
17,603
20,615
18.6
18.6
2,128.9
2,543.3
0.6
0.5
12.4
10.5
28.0
28.9
6.6
5.6
Britannia
Neutral
4,319
-
51,851
9,690
11,278
14.8
15.4
84.0
101.0
51.4
42.8
18.7
14.9
40.6
39.0
5.3
4.6
Colgate
Neutral
1,157
-
31,474
4,420
5,074
24.9
25.3
28.6
32.8
40.5
35.3
16.0
12.9
43.8
40.5
6.9
5.9
Dabur India
Neutral
306
-
53,929
8,346
9,344
19.6
19.9
7.8
9.0
39.3
34.0
7.9
7.2
25.2
24.8
6.1
5.3
GlaxoSmith Con*
Neutral
5,091
-
21,410
5,072
5,760
18.2
18.4
176.3
199.2
28.9
25.6
6.1
5.5
21.2
21.7
3.5
3.1
Godrej Consumer
Neutral
938
-
63,919
10,171
11,682
20.8
21.5
21.7
27.1
43.2
34.6
9.7
8.4
22.3
23.4
6.4
5.5
HUL
Neutral
1,247
-
269,835
37,077
41,508
20.3
21.8
5,189.9
6,318.5
0.2
0.2
38.0
32.5
74.8
82.0
7.1
6.4
ITC
Neutral
278
-
338,065
44,588
49,853
37.0
37.3
9.6
11.0
28.9
25.2
7.1
6.8
25.1
27.3
7.1
6.3
Marico
Neutral
330
-
42,586
6,788
7,766
18.5
19.2
7.1
8.5
46.5
38.8
16.3
13.9
36.9
38.0
6.1
5.3
Nestle*
Neutral
7,372
-
71,073
10,083
11,182
20.0
20.9
119.7
141.3
61.6
52.2
217.0
198.4
36.7
39.8
6.7
6.0
Tata Global
Neutral
212
-
13,383
7,121
7,641
11.9
12.3
6.9
8.0
30.7
26.5
2.1
2.0
6.8
7.2
1.7
1.5
Procter & Gamble
Neutral
8,328
-
27,034
3,034
3,579
27.1
27.7
167.7
198.8
49.7
41.9
13.3
11.5
28.8
29.5
8.3
7.0
Hygiene
IT
HCL Tech^
Buy
864
1,014
123,313
52,342
57,053
20.9
20.9
62.8
67.6
13.8
12.8
3.1
2.6
22.4
20.6
2.0
1.8
Infosys
Buy
884
1,179
203,018
73,963
80,619
26.0
26.0
64.4
69.3
13.7
12.8
2.7
2.5
19.7
19.6
2.2
1.9
TCS
Accumulate
2,487
2,651
490,006
127,403
138,870
27.6
27.6
144.5
156.0
17.2
15.9
5.1
4.8
29.7
29.8
3.5
3.2
Tech Mahindra
Buy
440
533
42,940
31,015
33,496
15.0
15.0
35.6
38.1
12.4
11.6
2.1
2.0
17.0
16.3
1.2
1.0
Wipro
Neutral
298
-
145,149
58,536
61,858
20.3
20.3
18.2
19.1
16.4
15.6
2.6
2.2
14.6
13.4
2.4
2.3
Stock Watch
September 13, 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
Media
D B Corp
Neutral
372
-
6,835
2,404
2,625
30.5
31.5
23.7
26.9
15.7
13.8
3.7
3.2
23.5
22.8
2.7
2.4
HT Media
Neutral
100
-
2,337
2,589
2,830
15.1
15.4
8.3
10.9
12.1
9.2
1.0
0.9
8.4
10.4
0.4
0.3
Jagran Prakashan
Buy
178
225
5,804
2,541
2,835
28.5
28.7
12.7
14.1
14.0
12.6
2.9
2.5
21.3
21.4
2.1
1.8
Sun TV Network
Neutral
826
-
32,544
3,238
3,789
51.9
55.1
30.9
38.0
26.7
21.7
7.6
6.7
30.0
31.0
9.6
8.1
Hindustan Media
Neutral
265
-
1,944
1,002
1,074
23.3
23.5
29.2
33.8
9.1
7.8
1.4
1.2
15.6
15.4
0.9
0.7
Ventures
TV Today Network
Buy
264
344
1,574
667
727
27.7
27.7
18.6
20.1
14.2
13.2
2.2
2.3
15.6
17.3
1.9
1.8
Music Broadcast Limited Accumulate
396
434
2,257
271
317
91.0
109.0
6.0
10.0
65.9
39.6
4.1
3.7
6.5
9.3
7.9
6.5
Metals & Mining
Coal India
Neutral
258
-
159,841
82,301
91,235
17.0
18.0
17.1
20.5
15.1
12.6
2.8
2.7
45.0
55.0
1.6
1.4
Hind. Zinc
Neutral
313
-
132,105
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
251
-
56,337
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
1.1
JSW Steel
Neutral
269
-
65,120
64,500
68,245
21.1
21.5
20.1
21.2
13.4
12.7
2.5
2.1
-
-
1.7
1.7
NMDC
Neutral
135
-
42,807
10,209
11,450
47.0
48.0
11.1
12.1
12.2
11.2
1.7
1.6
-
-
3.7
3.4
SAIL
Neutral
63
-
26,123
54,100
63,555
3.0
10.0
(10.0)
1.5
42.2
0.8
0.8
-
-
1.5
1.3
Vedanta
Neutral
331
-
122,928
81,206
87,345
28.0
29.0
26.5
33.5
12.5
9.9
2.8
2.4
-
-
2.3
1.9
Tata Steel
Neutral
683
-
66,349
121,445
126,500
16.2
17.2
65.4
81.3
10.5
8.4
1.7
1.4
-
-
1.1
0.9
Oil & Gas
GAIL
Neutral
409
-
69,250
53,115
52,344
14.2
15.3
30.0
31.1
13.7
13.2
1.7
1.6
-
-
1.0
1.0
ONGC
Neutral
162
-
208,091
83,111
84,934
44.2
44.9
16.4
16.9
9.9
9.6
1.2
1.1
-
-
2.4
2.4
Indian Oil Corp
Neutral
435
-
211,183
396,116
432,560
8.5
8.8
40.1
42.2
10.9
10.3
1.9
1.7
-
-
0.7
0.6
Reliance Industries
Neutral
823
-
535,458
257,711
267,438
17.0
18.2
89.1
89.5
9.2
9.2
0.9
0.8
-
-
1.7
1.7
Pharmaceuticals
Alembic Pharma
Buy
501
600
9,452
3,903
4,584
18.2
19.2
21.8
27.2
23.0
18.4
4.2
3.5
19.8
20.6
2.4
2.1
Alkem Laboratories Ltd
Buy
1,799
2,161
21,507
6,901
7,850
18.4
19.1
85.0
100.5
21.2
17.9
4.3
3.6
20.2
20.1
3.1
2.7
Aurobindo Pharma
Accumulate
758
823
44,422
17,086
19,478
22.1
22.0
44.7
51.4
17.0
14.8
3.8
3.0
24.7
22.7
2.7
2.4
Aventis*
Neutral
4,066
-
9,365
2,508
2,862
16.8
16.8
139.9
153.8
29.1
26.4
4.2
3.4
23.5
25.8
3.3
2.8
Cadila Healthcare
Reduce
478
426
48,955
11,584
13,228
20.3
20.4
18.7
21.3
25.6
22.5
5.7
4.7
24.6
22.9
4.1
3.5
Cipla
Sell
559
458
45,014
16,619
19,437
15.4
16.2
19.7
24.3
28.4
23.0
3.2
2.9
12.0
13.2
2.9
2.4
Dr Reddy's
Neutral
2,165
-
35,891
15,844
17,973
17.6
18.2
91.7
111.0
23.6
19.5
2.7
2.4
11.9
13.0
2.5
2.2
GSK Pharma*
Neutral
2,430
-
20,583
3,260
3,651
15.0
18.0
46.1
58.6
52.7
41.5
10.8
11.2
20.0
26.5
6.2
5.7
Indoco Remedies
Sell
193
153
1,776
1,154
1,310
14.9
14.9
11.3
12.7
17.1
15.2
2.4
2.1
15.0
15.0
1.7
1.4
Ipca labs
Accumulate
496
540
6,258
3,593
4,022
14.5
15.5
19.4
25.2
25.6
19.7
2.3
2.1
9.5
11.2
1.8
1.6
Stock Watch
September 13, 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
Lupin
Buy
981
1,467
44,337
18,657
21,289
21.3
23.3
52.8
66.7
18.6
14.7
2.8
2.4
16.3
17.5
2.4
2.0
Natco Pharma
Accumulate
739
796
12,889
1,836
1,946
31.8
28.9
22.1
20.6
33.4
35.9
6.7
6.0
20.1
16.7
6.9
6.5
Sun Pharma
Buy
484
558
116,004
32,899
36,451
26.9
25.4
31.6
32.3
15.3
15.0
2.7
2.3
18.7
18.8
3.2
2.7
Syngene International
Buy
471
557
9,416
1,402
1,823
32.8
36.0
15.9
20.7
29.7
22.8
5.5
4.6
18.7
20.0
6.7
5.1
Power
Tata Power
Neutral
81
-
21,895
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
170
-
140,090
86,070
101,246
28.3
30.7
12.9
16.2
13.2
10.5
1.4
1.3
10.6
12.4
3.0
2.7
Power Grid
Neutral
215
-
112,610
29,183
32,946
89.7
90.0
18.0
20.8
12.0
10.4
2.0
1.8
17.7
18.2
7.8
7.2
Real Estate
Prestige Estate
Neutral
255
-
9,570
4,607
5,146
21.0
22.2
7.9
9.8
32.3
26.0
2.0
1.8
10.3
12.0
3.3
3.0
MLIFE
Buy
435
522
2,233
487
590
12.3
17.8
21.0
31.2
20.7
14.0
1.1
1.0
5.2
7.4
3.3
2.7
Telecom
Bharti Airtel
Neutral
405
-
161,855
97,903
105,233
36.0
36.3
9.3
11.1
43.5
36.6
2.1
2.0
5.0
5.6
2.6
2.4
Idea Cellular
Neutral
79
-
28,440
35,012
37,689
27.1
27.7
(4.4)
(2.7)
1.2
1.3
(6.8)
(4.6)
2.1
1.9
zOthers
Abbott India
Neutral
4,190
-
8,904
3,244
3,723
14.9
16.1
167.5
209.4
25.0
20.0
5.5
4.6
23.7
24.8
2.4
2.0
Asian Granito
Accumulate
454
493
1,365
1,169
1,286
12.5
12.5
16.0
19.7
28.4
23.0
3.0
2.7
10.7
11.6
1.4
1.2
Bajaj Electricals
Accumulate
374
395
3,797
4,646
5,301
6.7
7.6
16.1
22.3
23.2
16.8
3.8
3.2
16.4
19.2
0.8
0.7
Banco Products (India)
Neutral
223
-
1,595
1,530
1,695
13.2
12.7
19.0
20.0
11.7
11.2
1.9
1.7
0.2
0.2
1.0
105.9
Coffee Day Enterprises
Neutral
244
-
5,032
3,494
3,913
17.4
18.0
4.8
5.7
-
42.9
2.2
2.1
-
0.1
1.9
1.7
Ltd
Elecon Engineering
Neutral
52
-
580
171
201
15.0
16.2
36.0
43.0
1.4
1.2
0.1
0.1
0.1
0.1
2.8
2.3
Garware Wall Ropes
Neutral
923
-
2,020
928
1,003
15.2
15.2
39.4
43.2
23.4
21.4
3.9
3.3
16.5
15.4
2.0
1.8
Goodyear India*
Neutral
822
-
1,897
1,717
1,866
11.8
12.3
47.9
49.8
17.2
16.5
2.7
2.3
15.6
15.7
0.8
114.5
Hitachi
Neutral
1,943
-
5,283
2,355
2,715
10.3
10.8
49.0
60.9
39.7
31.9
9.3
7.3
0.2
0.2
2.3
1.9
HSIL
Neutral
383
-
2,772
2,240
2,670
14.6
15.0
17.0
22.0
22.6
17.4
1.9
1.8
0.1
0.1
1.5
1.2
Interglobe Aviation
Neutral
1,203
-
43,512
22,570
27,955
14.2
15.0
63.6
81.8
18.9
14.7
10.0
8.4
0.5
0.6
1.6
1.2
Jyothy Laboratories
Neutral
418
-
7,600
1,781
2,044
14.1
15.0
9.4
10.5
44.7
39.8
9.5
8.9
0.2
0.2
4.5
3.8
Linc Pen & Plastics
Neutral
231
-
342
420
462
9.3
9.3
15.3
17.1
15.1
13.5
2.6
2.6
16.9
19.5
0.9
0.8
M M Forgings
Neutral
628
-
758
542
642
20.1
21.0
41.6
56.8
15.1
11.1
2.1
1.8
0.1
0.2
1.8
1.6
Mirza International
Neutral
176
-
2,114
1,148
1,285
18.0
18.0
8.0
9.4
21.9
18.8
3.6
3.1
16.3
16.1
2.0
1.7
Navkar Corporation
Buy
193
265
2,752
561
617
41.5
41.5
11.5
12.7
16.8
15.2
1.8
1.6
10.5
10.4
5.6
4.9
Nilkamal
Neutral
1,617
-
2,412
2,317
2,525
11.4
11.1
96.0
105.0
16.8
15.4
2.9
2.5
0.2
0.2
1.0
0.9
Parag Milk Foods
Neutral
250
-
2,106
1,987
2,379
7.6
9.0
12.4
18.3
20.2
13.7
2.8
2.5
8.2
13.2
1.2
1.0
Stock Watch
September 13, 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
Radico Khaitan
Neutral
177
-
2,351
1,811
1,992
13.2
13.2
8.1
8.8
21.8
20.1
2.2
2.4
10.1
12.0
1.6
1.5
Relaxo Footwears
Neutral
517
-
6,213
1,981
2,310
13.7
14.5
12.0
15.5
43.1
33.4
8.4
6.8
0.2
0.2
3.2
2.7
Siyaram Silk Mills
Accumulate
2,347
2,500
2,200
1,769
1,981
12.7
12.7
113.1
131.1
20.8
17.9
3.2
2.8
15.5
15.5
1.4
1.3
Styrolution ABS India* Neutral
939
-
1,652
1,800
1,980
8.0
8.1
42.0
46.2
22.4
20.3
2.5
2.2
0.1
0.1
1.0
1.0
Surya Roshni
Neutral
311
-
1,361
4,870
5,320
7.7
7.8
22.8
28.1
13.7
11.1
1.8
1.6
0.1
0.1
0.5
0.4
TVS Srichakra
Neutral
3,198
-
2,449
2,729
2,893
12.7
12.5
248.5
265.0
12.9
12.1
3.7
3.0
0.3
0.3
0.9
0.8
Visaka Industries
Neutral
647
-
1,027
1,104
1,214
12.1
12.6
31.0
37.9
20.9
17.1
2.5
2.3
0.1
0.1
1.2
1.0
VIP Industries
Accumulate
232
250
3,279
1,450
1,693
10.4
10.5
6.5
7.8
35.5
29.7
7.5
6.6
21.1
22.1
2.3
1.9
Navin Fluorine
Accumulate
669
730
3,298
945
1,154
22.4
22.6
28.7
34.8
23.3
19.3
3.9
3.3
-
-
3.0
2.3
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on September 12, 2017
Market Outlook
September 13, 2017
Research Team Tel: 022 - 39357800
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