Market Outlook
December 15, 2017
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open flat tracking global indices and SGX Nifty.
BSE Sensex
0.6
194
33,247
After an early move to the upside, stocks turned lower over the course of the trading
Nifty
0.6
59
10,252
session on Thursday. The Dow pulled back into negative territory after reaching a
Mid Cap
0.1
16
16,806
new record intraday high. The downturn by stocks came amid uncertainty about the
Small Cap
(0.3)
(58)
17,923
outlook for the Republican tax reform plan after Senator Marco Rubio, R-Fla.,
Bankex
0.7
189
28,461
indicated his opposition to the legislation currently being negotiated.
The majority of the European markets ended Thursday's session with small losses.
Global Indices
Chg (%)
(Pts)
(Close)
Central banks were in focus, as investors had their first opportunity to react to
yesterday's rate hike by the Federal Reserve. The European Central Bank, the Bank
Dow Jones
(0.3)
(77)
24,509
of England and the Swiss National Bank all decided to leave their respective interest
Nasdaq
(0.3)
(19)
6,856
rates unchanged today.
FTSE
(0.7)
(48)
7,448
Hectic buying in pharmaceuticals space and a few front-line stocks from automobile
Nikkei
(0.3)
(64)
22,694
and banking sectors lifted key Indian markets Sensex and the Nifty50 to a positive
Hang Seng
(0.2)
(56)
29,166
close on Thursday.
Shanghai Com
(0.3)
(11)
3,292
News Analysis
Advances / Declines
BSE
NSE
Mahindra to hike vehicles prices by up to 3% from January
Advances
1,057
516
Detailed analysis on Pg2
Declines
1,580
1,242
Investor’s Ready Reckoner
Unchanged
167
51
Key Domestic & Global Indicators
Stock Watch: Latest investment recommendations on 150+ stocks
Volumes (` Cr)
Refer Pg5 onwards
BSE
4,876
NSE
25,347
Top Picks
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
Net Inflows (` Cr)
Net
Mtd
Ytd
Blue Star
Capital Goods Accumulate
764
867
13.5
FII
800
(2,778)
54,854
Dewan Housing Finance
Financials
Buy
587
712
21.3
MFs
864
4,436 1,14,674
Asian Granito
Other
Accumulate
502
570
13.5
Navkar Corporation
Other
Buy
188
265
40.8
KEI Industries
Capital Goods
Buy
365
436
19.6
Top Gainers
Price (`)
Chg (%)
More Top Picks on Pg4
Irb
209
6.9
Natcopharm
1,021
6.1
Key Upcoming Events
Previous
Consensus
Rcom
12
5.9
Date
Region
Event Description
Reading
Expectations
Wockpharma
761
5.4
Dec15
Euro Zone Euro-Zone CPI (YoY)
1.40
-
Religare
60
5.0
Dec18
US
FOMC rate decision
1.25
1.50
Dec19
US
Housing Starts
1,290.00
-
Dec19
US
Building permits
1,316.00
-
Top Losers
Price (`)
Chg (%)
Dec20
US
Existing home sales
5.48
-
Videoind
17
(4.8)
More Events on Pg7
Piind
896
(4.6)
Jktyre
129
(4.1)
Jmfinancil
147
(3.7)
Indiacem
163
(3.2)
As on December 14 2017
Market Outlook
December 15, 2017
News Analysis
Mahindra to hike vehicles prices by up to 3% from January
Utility vehicle major Mahindra & Mahindra (M&M) announced it will increase
prices of its passenger and commercial vehicles by up to 3 per cent from January.
According to company, M&M has been holding back on price hikes and
absorbing the higher input costs for a while, but with the increase in commodity
prices the company will has to take a price increase.
The company sells a range of vehicles, including SUVs Scorpio and XUV500, in the
country.
Yesterday, Maruti Suzuki India announced it will raise prices of its entire range by
up to 2 per cent from next month.
Various other automakers such as Tata Motors, Ford, Toyota Kirloskar Motor,
Honda Cars India, Skoda and Isuzu have also announced their decision to hike
prices from early next year.
Economic and Political News
GDP growth to recover to 7% in next few quarters: Standard Chartered
report
Odisha SLFC facilitated `1.8 lakh cr projects
Gold prices surge by `230 to `29,665 per 10 grams on strong global cues
Corporate News
Vedanta to raise `500 crore via NCDs
Mahindra to hike vehicles prices by up to 3% from January
Cadila Healthcare says Zydus got USFDA nod to market two drugs
Market Outlook
December 15, 2017
Top Picks HHHHH
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
24,989
2,090
2,341
12.0
more products in USA, which bodes for its international
business.
We expect the company would report strong profitability
Asian Granito
1,511
502
570
13.5
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
7,326
764
867
13.5
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
18,407
587
712
21.3
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
8,252
114
180
57.4
Increasing share of CASA will help in NIM
improvement.
High order book execution in EPC segment, rising B2C
KEI Industries
2,857
365
436
19.6
sales and higher exports to boost the revenues and
profitability
Expected to benefit from the lower capex requirement
Music Broadcast
2,164
379
434
14.5
and 15 year long radio broadcast licensing.
Massive capacity expansion along with rail advantage
Navkar Corporation
2,834
188
265
40.8
at ICD as well CFS augur well for the company
Strong brands and distribution network would boost
Siyaram Silk Mills
3,279
700
800
14.3
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
2,308
387
435
12.4
radio business, and anticipated growth in ad spends by
corporate to benefit the stock.
After GST, the company is expected to see higher
volumes along with improving product mix. The Gujarat
Maruti Suzuki
2,75,435
9,118
9,674
6.1
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
2,173
404
655
62.3
year; change in borrowing mix will help in NIM
improvement
We expect CPIL to report net Revenue/PAT CAGR of
~17%/16% over FY2017-20E mainly due to healthy
7,174
323
400
23.9
growth in plywood & lamination business, forayed into
Century Plyboards India
MDF & Particle boards on back of strong brand &
distribution network.
We expect sales/PAT to grow at 13.5%/20% over next
LT Foods
2,074
78
96
23.5
two years on the back of strong distribution network &
addition of new products in portfolio.
We expect sales/PAT to grow at 13%/16% over next two
years on the back of strong healthy demand in writing
Ruchira Papers
421
188
244
30.0
& printing paper and Kraft paper. Further, China had
banned making paper from waste pulp which would
benefit Indian paper companies.
Source: Company, Angel Research
Market Outlook
December 15, 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
Dec 15, 2017
3:30 PM Euro Zone Euro-Zone CPI (YoY)
%
Nov F
1.40
Dec 18, 2017
12: 30 AM US
FOMC rate decision
%
Dec 13
1.25
1.50
Dec 19, 2017
7:00 PM US
Housi ng Starts
Thousands
Nov
1,290.00
7:00 PM US
Building permits
Thousands
Nov
1,316.00
Dec 20, 2017
8:30 PM US
Existing home sales
Million
Nov
5.48
Dec 22, 2017
8:30 PM US
New home sales
Thousands
Nov
685.00
3:00 PM UK
GDP (YoY)
% Change
3Q F
1.50
Dec 27, 2017
8:30 PM US
Consumer Confidence
S.A./ 1985=100
Dec
129.50
Feb 14, 2018
12: 30 PM Germany GDP nsa (YoY)
% Change
4Q P
2.30
Source: Bloomberg, Angel Research
Market Outlook
December 15, 2017
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
10.0
5.0
4.5
9.1
4.4
4.1
9.0
8.0
7.9
4.0
3.5
7.6
7.5
3.2
8.0
7.3
7.2
2.9
7.0
3.0
2.4
7.0
6.3
2.2
6.1
6.1
5.7
2.0
6.0
1.2
1.0
5.0
1.0
4.0
-
3.0
(1.0)
(0.3)
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
4.9
52.0
5.0
3.9
50.0
3.7
3.6
4.0
3.4
3.3
3.3
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
3.50
(10.0)
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
Market Outlook
December 15, 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
(%)
6.7
6.8
7.0
6.0
5.4
5.2
5.0
3.7
4.0
3.0
1.8
2.2
2.0
1.7
1.6
2.0
0.7
1.5
0.7
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
Stock Watch
December 15, 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
236
209
4,593
1,873
2,099
15.0
15.0
9.5
10.5
24.9
22.5
3.8
3.4
15.8
16.0
2.3
2.1
United Phosphorus
Accumulate
720
820
36,592
18,922
21,949
18.0
18.5
36.2
45.6
19.9
15.8
4.2
3.4
22.7
23.8
2.1
1.8
Auto & Auto Ancillary
Ashok Leyland
Accumulate
112
127
32,901
23,339
27,240
10.1
10.8
4.7
6.2
24.2
18.1
4.8
4.3
20.0
23.6
1.4
1.1
Bajaj Auto
Neutral
3,151
-
91,191
23,936
27,955
19.5
20.1
142.7
167.3
22.1
18.8
4.8
4.3
21.8
22.8
3.4
2.9
Bharat Forge
Buy
690
875
32,126
7,637
8,755
21.7
23.2
36.1
47.3
19.1
14.6
3.4
2.9
18.5
20.8
4.1
3.5
Eicher Motors
Neutral
28,739
-
78,275
19,043
22,837
19.5
19.9
835.4
1,019.0
34.4
28.2
12.9
9.9
40.9
37.8
4.0
3.3
Gabriel India
Neutral
188
-
2,693
1,782
2,033
9.7
10.2
7.1
8.9
26.4
21.2
5.3
4.5
21.0
22.2
1.5
1.3
Hero Motocorp
Buy
3,454
4,129
68,988
32,239
36,878
16.0
15.6
184.4
206.5
18.7
16.7
5.9
5.2
31.3
30.7
1.9
1.6
Jamna Auto Industries Neutral
67
-
2,668
1,441
1,662
14.4
14.8
13.9
17.6
4.8
3.8
1.3
1.1
30.0
31.0
1.8
1.6
Mahindra and Mahindra Neutral
1,432
-
88,994
46,971
53,816
13.6
14.0
67.7
79.8
21.2
17.9
3.0
2.7
15.0
15.9
1.8
1.5
Maruti
Accumulate
9,118
9,674
275,435
79,470
95,208
15.9
17.2
281.7
363.8
32.4
25.1
7.0
5.7
21.7
22.8
3.1
2.5
Minda Industries
Neutral
1,105
-
9,548
4,328
5,084
11.0
11.9
27.3
36.4
40.5
30.4
8.6
6.7
23.1
25.6
2.3
1.9
Motherson Sumi
Neutral
372
-
78,354
55,937
64,445
10.8
11.4
16.9
21.1
22.0
17.7
4.9
5.0
25.2
25.4
1.5
1.2
Tata Motors
Neutral
403
-
116,302
303,167
343,649
11.8
13.8
33.1
54.7
12.2
7.4
2.0
1.6
16.9
23.0
0.4
0.4
TVS Motor
Neutral
750
-
35,646
13,992
16,216
9.0
9.4
17.1
20.3
44.0
37.0
11.7
9.0
29.7
27.7
2.5
2.1
Amara Raja Batteries
Accumulate
772
858
13,184
6,140
7,122
14.3
15.6
29.3
39.0
26.3
19.8
4.5
3.8
17.1
19.0
2.2
1.8
Exide Industries
Neutral
204
-
17,361
8,689
9,854
15.1
15.2
9.7
11.0
21.2
18.6
3.8
3.3
15.7
16.1
1.7
1.5
Apollo Tyres
Neutral
241
-
13,781
15,739
17,326
13.3
14.6
20.4
26.7
11.8
9.0
1.4
1.3
20.4
26.7
1.1
1.0
Ceat
Neutral
1,721
-
6,962
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
129
-
2,932
8,318
9,239
16.2
16.4
21.0
27.5
6.2
4.7
1.2
1.0
19.1
20.4
0.8
0.7
Swaraj Engines
Neutral
1,945
-
2,416
788
889
16.4
16.5
71.6
81.0
27.2
24.0
7.8
7.3
29.6
31.0
2.7
2.4
Subros
Neutral
265
-
1,587
1,855
2,135
11.6
11.8
10.3
14.7
25.8
18.1
3.9
3.4
15.8
19.1
1.1
0.9
Capital Goods
BEML
Neutral
1,476
-
6,148
4,286
5,194
7.1
8.2
42.9
58.1
34.4
25.4
2.8
2.6
7.6
8.7
1.5
1.2
Bharat Electronics
Neutral
181
-
44,398
10,258
12,470
19.6
19.5
7.3
8.6
24.8
21.0
0.5
0.4
20.4
21.9
3.8
3.1
Voltas
Neutral
617
-
20,409
6,778
8,004
9.6
11.0
17.1
22.4
36.1
27.5
8.6
7.5
17.7
19.8
2.7
2.3
BHEL
Neutral
90
-
32,914
33,200
39,167
6.8
9.5
6.2
11.2
14.5
8.0
0.7
0.6
4.6
8.0
0.6
0.4
Blue Star
Accumulate
764
867
7,326
5,220
6,207
6.3
6.6
16.8
22.3
45.5
34.3
9.0
8.0
19.9
23.3
1.4
1.1
CG Power and Industrial
Neutral
84
-
5,274
6,555
7,292
7.5
7.5
-
0.8
8,415.0
105.2
1.3
1.3
0.1
1.2
0.9
0.8
Solutions
Greaves Cotton
Neutral
116
-
2,844
1,778
1,993
14.7
15.1
8.1
9.1
14.4
12.8
3.2
3.0
21.8
23.6
1.4
1.2
Stock Watch
December 15, 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
324
350
8,337
9,779
11,113
9.4
9.8
14.2
18.2
22.8
17.8
4.4
3.6
21.1
22.1
1.1
1.0
KEI Industries
Buy
365
436
2,857
3,001
3,391
10.0
10.0
13.0
16.1
28.0
22.6
5.1
4.2
18.2
18.7
1.1
1.0
Thermax
Neutral
1,162
-
13,845
4,125
4,747
10.3
10.8
26.7
31.5
43.5
36.9
4.9
4.4
11.2
12.0
3.1
2.7
VATech Wabag
Accumulate
610
681
3,331
3,867
4,126
9.6
10.0
34.9
39.8
17.5
15.3
2.9
2.5
17.7
17.5
0.9
0.8
Cement
ACC
Neutral
1,690
-
31,734
12,255
13,350
13.5
14.3
58.0
66.2
29.1
25.5
3.5
3.2
11.5
12.2
2.6
2.3
Ambuja Cements
Neutral
265
-
52,550
10,250
11,450
17.5
19.0
7.2
8.3
36.8
31.9
2.6
2.5
7.0
7.8
4.9
4.3
India Cements
Neutral
163
-
5,034
6,135
6,750
14.8
15.2
8.5
11.5
19.2
14.2
1.0
0.9
4.8
6.2
1.2
1.0
JK Cement
Neutral
1,064
-
7,442
4,150
4,775
19.2
20.0
49.0
63.5
21.7
16.8
3.4
3.0
17.0
18.5
2.2
1.9
J K Lakshmi Cement
Neutral
440
-
5,176
3,422
3,757
15.5
17.0
13.5
23.2
32.6
19.0
3.4
2.9
10.8
15.5
1.9
1.7
Orient Cement
Neutral
161
-
3,293
2,215
3,233
16.8
17.0
5.9
6.9
27.3
23.3
2.1
1.9
10.8
10.1
2.5
1.7
UltraTech Cement
Neutral
4,256
-
116,844
28,250
35,150
20.2
23.5
77.5
122.2
54.9
34.8
4.6
4.2
9.6
14.8
4.6
3.7
Construction
KNR Constructions
Neutral
270
-
3,791
1,846
2,203
14.5
14.5
12.1
13.7
22.3
19.8
1.2
1.1
17.5
16.7
2.1
1.8
Larsen & Toubro
Neutral
1,189
-
166,562
95,787
109,476
10.2
11.6
44.5
50.8
26.8
23.4
3.4
3.1
12.9
13.1
2.3
2.0
Gujarat Pipavav Port
Neutral
136
-
6,565
739
842
61.6
62.7
5.1
6.2
26.6
22.1
3.3
3.2
12.7
14.9
8.3
7.2
PNC Infratech
Neutral
183
-
4,693
2,040
2,935
13.0
13.0
6.4
9.0
28.6
20.3
0.7
0.7
9.7
12.2
2.3
1.7
Simplex Infra
Neutral
554
-
2,742
6,012
6,619
11.6
11.7
21.1
31.0
26.3
17.9
1.8
1.7
6.5
8.6
1.0
0.9
Sadbhav Engineering
Neutral
360
-
6,171
3,823
4,426
10.7
10.8
10.3
11.8
34.9
30.5
4.2
3.7
10.1
10.5
1.9
1.7
NBCC
Neutral
245
-
22,091
9,099
12,706
6.4
6.4
7.3
9.6
33.7
25.7
1.5
1.2
27.5
30.5
2.3
1.7
MEP Infra
Neutral
92
-
1,491
2,403
2,910
18.3
16.8
2.4
6.1
39.0
15.1
14.8
10.0
35.2
55.8
1.8
1.5
SIPL
Neutral
137
-
4,824
2,060
2,390
46.8
47.7
(5.8)
(3.1)
5.1
5.9
(14.2)
(2.3)
7.1
6.6
Engineers India
Neutral
186
-
12,561
1,795
2,611
21.1
22.4
5.9
8.1
31.6
23.0
2.3
2.2
12.9
16.1
5.4
3.5
Financials
Axis Bank
Accumulate
542
580
129,898
32,558
35,843
3.5
3.2
27.8
41.0
19.5
13.2
2.1
1.9
11.4
14.9
-
-
Bank of Baroda
Neutral
166
-
38,145
22,533
26,079
2.4
2.4
12.0
20.9
13.8
7.9
0.9
0.9
6.6
11.0
-
-
Canara Bank
Neutral
357
-
21,332
17,925
20,235
2.0
2.1
18.5
36.5
19.3
9.8
0.7
0.7
3.4
6.2
-
-
Can Fin Homes
Neutral
462
-
6,143
586
741
3.5
3.5
107.8
141.0
4.3
3.3
0.9
0.8
24.1
25.6
-
-
Cholamandalam Inv. &
Neutral
1,300
-
20,319
2,826
3,307
6.3
6.3
53.7
64.6
24.2
20.1
4.1
3.5
18.3
18.9
-
-
Fin. Co.
Dewan Housing Finance Buy
587
712
18,407
2,676
3,383
2.4
2.7
37.4
49.7
15.7
11.8
2.1
1.8
13.8
16.2
-
-
Equitas Holdings
Buy
136
235
4,607
1,125
1,380
9.6
9.8
1.5
6.0
90.5
22.6
2.1
1.9
2.4
8.2
-
-
Federal Bank
Buy
104
125
20,396
4,896
5,930
2.8
3.1
5.4
7.6
19.4
13.7
1.7
1.5
8.5
11.0
-
-
Stock Watch
December 15, 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
404
655
2,173
376
477
3.6
3.7
33.0
40.0
12.2
10.1
2.2
1.9
20.0
23.0
-
-
HDFC Bank
Neutral
1,837
-
475,479
55,236
63,253
4.5
4.4
68.9
82.4
26.7
22.3
4.6
3.9
18.7
18.5
-
-
ICICI Bank
Neutral
305
-
195,559
42,361
51,378
3.6
3.9
18.4
25.7
16.6
11.8
1.8
1.7
11.3
15.0
-
-
Karur Vysya Bank
Buy
114
180
8,252
3,289
3,630
3.7
3.9
10.8
14.1
10.6
8.1
1.3
1.1
12.5
14.7
-
-
LIC Housing Finance
Buy
546
630
27,542
4,895
6,332
3.4
3.7
50.7
66.8
10.8
8.2
2.2
1.8
21.7
23.8
-
-
Punjab Natl.Bank
Neutral
169
-
36,027
23,708
25,758
2.1
2.1
5.9
16.4
28.8
10.3
0.9
0.8
3.0
8.3
-
-
RBL Bank
Neutral
508
-
21,176
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
645
825
4,037
496
597
4.4
4.2
38.5
48.7
16.8
13.2
3.0
2.5
19.6
20.6
-
-
South Ind.Bank
Neutral
31
-
5,598
3,195
3,567
3.0
3.1
3.0
3.8
10.3
8.1
1.0
0.9
10.5
11.9
-
-
St Bk of India
Neutral
314
-
271,090
105,827
121,056
2.4
2.5
16.1
25.6
19.5
12.3
1.5
1.4
6.6
9.9
-
-
Union Bank
Neutral
147
-
10,653
14,650
16,225
2.3
2.3
23.1
32.5
6.4
4.5
0.5
0.4
7.1
9.2
-
-
Yes Bank
Neutral
304
-
69,836
11,088
13,138
3.0
2.9
84.0
99.3
3.6
3.1
0.6
0.5
16.3
16.8
-
-
FMCG
Akzo Nobel India
Neutral
1,793
-
8,597
3,164
3,607
13.8
13.7
58.6
67.9
30.6
26.4
7.5
6.6
24.5
25.1
2.6
2.2
Asian Paints
Neutral
1,125
-
107,915
17,603
20,615
18.6
18.6
2,128.9
2,543.3
0.5
0.4
11.1
9.4
28.0
28.9
5.9
5.0
Britannia
Neutral
4,695
-
56,368
9,690
11,278
14.8
15.4
84.0
101.0
55.9
46.5
20.4
16.2
40.6
39.0
5.8
5.0
Colgate
Neutral
1,057
-
28,737
4,420
5,074
24.9
25.3
28.6
32.8
36.9
32.2
14.6
11.8
43.8
40.5
6.2
5.4
Dabur India
Neutral
345
-
60,834
8,346
9,344
19.6
19.9
7.8
9.0
44.3
38.4
8.9
8.1
25.2
24.8
6.9
6.1
GlaxoSmith Con*
Neutral
6,266
-
26,352
5,072
5,760
18.2
18.4
176.3
199.2
35.5
31.5
7.5
6.8
21.2
21.7
4.5
3.9
Godrej Consumer
Neutral
996
-
67,877
10,171
11,682
20.8
21.5
21.7
27.1
45.9
36.8
10.3
8.9
22.3
23.4
6.8
5.9
HUL
Neutral
1,324
-
286,501
37,077
41,508
20.3
21.8
5,189.9
6,318.5
0.3
0.2
40.4
34.5
74.8
82.0
7.6
6.8
ITC
Neutral
264
-
321,647
44,588
49,853
37.0
37.3
9.6
11.0
27.5
24.0
6.7
6.4
25.1
27.3
6.7
6.0
Marico
Neutral
309
-
39,865
6,788
7,766
18.5
19.2
7.1
8.5
43.5
36.3
15.2
13.0
36.9
38.0
5.7
5.0
Nestle*
Neutral
7,879
-
75,969
10,083
11,182
20.0
20.9
119.7
141.3
65.8
55.8
232.0
212.0
36.7
39.8
7.2
6.5
Tata Global
Neutral
284
-
17,943
7,121
7,641
11.9
12.3
6.9
8.0
41.2
35.5
2.8
2.6
6.8
7.2
2.3
2.1
Procter & Gamble
Neutral
9,331
-
30,290
3,034
3,579
27.1
27.7
167.7
198.8
55.6
46.9
14.9
12.9
28.8
29.5
9.4
7.9
Hygiene
IT
HCL Tech^
Buy
881
1,014
125,682
50,009
54,608
22.1
22.1
62.8
67.6
14.0
13.0
3.2
2.7
22.4
20.6
2.2
1.9
Infosys
Accumulate
1,012
1,120
232,559
70,333
75,960
26.0
26.0
61.7
65.9
16.4
15.4
3.1
2.9
18.9
18.7
2.7
2.4
TCS
Neutral
2,559
-
489,780
123,384
134,488
26.1
26.1
133.2
143.7
19.2
17.8
5.3
4.9
27.6
27.8
3.6
3.3
Tech Mahindra
Neutral
514
-
50,222
30,545
32,988
15.0
15.0
35.2
37.6
14.6
13.7
2.5
2.3
16.8
16.2
1.4
1.2
Stock Watch
December 15, 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
288
-
140,112
54,164
56,544
22.3
22.3
18.8
19.5
15.3
14.8
2.5
2.1
15.0
13.6
1.8
1.6
Media
D B Corp
Neutral
344
-
6,327
2,404
2,625
30.5
31.5
23.7
26.9
14.5
12.8
3.4
2.9
23.5
22.8
2.5
2.2
HT Media
Neutral
95
-
2,206
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
165
225
5,151
2,541
2,835
28.5
28.7
12.7
14.1
13.0
11.7
2.7
2.3
21.3
21.4
1.9
1.6
Sun TV Network
Neutral
913
-
35,996
3,238
3,789
51.9
55.1
30.9
38.0
29.6
24.0
8.4
7.4
30.0
31.0
10.6
9.0
Hindustan Media
Neutral
236
-
1,730
1,002
1,074
23.3
23.5
29.2
33.8
8.1
7.0
1.3
1.1
15.6
15.4
0.7
0.5
Ventures
TV Today Network
Accumulate
387
435
2,308
667
727
27.7
27.7
18.6
20.1
20.8
19.3
3.2
3.3
15.6
17.3
3.0
2.8
Music Broadcast Limited Accumulate
379
434
2,164
271
317
91.0
109.0
6.0
10.0
63.2
37.9
4.0
3.6
6.5
9.3
7.6
6.2
Metals & Mining
Coal India
Neutral
263
-
163,317
82,301
91,235
17.0
18.0
17.1
20.5
15.4
12.8
2.9
2.7
45.0
55.0
1.7
1.5
Hind. Zinc
Neutral
290
-
122,471
22,108
24,555
57.0
58.0
22.1
26.3
13.1
11.0
4.3
3.4
32.0
35.0
4.5
3.8
Hindalco
Neutral
236
-
53,078
102,350
105,355
13.5
14.5
21.5
24.5
11.0
9.7
1.5
1.3
15.0
15.2
1.1
1.0
JSW Steel
Neutral
243
-
58,654
64,500
68,245
21.1
21.5
20.1
21.2
12.1
11.5
2.2
1.9
-
-
1.6
1.6
NMDC
Neutral
128
-
40,640
10,209
11,450
47.0
48.0
11.1
12.1
11.6
10.6
1.6
1.5
-
-
3.5
3.2
SAIL
Neutral
78
-
32,091
54,100
63,555
3.0
10.0
(10.0)
1.5
51.8
1.0
1.0
-
-
1.6
1.4
Vedanta
Neutral
285
-
105,773
81,206
87,345
28.0
29.0
26.5
33.5
10.7
8.5
2.4
2.1
-
-
2.1
1.8
Tata Steel
Neutral
686
-
66,611
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
487
-
82,358
53,115
52,344
14.2
15.3
30.0
31.1
16.2
15.7
2.0
1.9
-
-
1.3
1.3
ONGC
Neutral
184
-
236,709
83,111
84,934
44.2
44.9
16.4
16.9
11.3
10.9
1.4
1.3
-
-
2.7
2.7
Indian Oil Corp
Neutral
410
-
198,995
396,116
432,560
8.5
8.8
40.1
42.2
10.2
9.7
1.8
1.6
-
-
0.6
0.6
Reliance Industries
Neutral
921
-
598,707
257,711
267,438
17.0
18.2
89.1
89.5
10.3
10.3
1.0
0.9
-
-
2.0
1.9
Pharmaceuticals
Alembic Pharma
Accumulate
525
600
9,889
3,346
3,915
19.6
19.2
21.0
23.9
25.0
22.0
4.4
3.8
19.1
18.4
3.0
2.6
Alkem Laboratories Ltd
Accumulate
2,090
2,341
24,989
6,320
7,341
17.5
19.8
72.7
96.6
28.7
21.6
5.1
4.3
16.7
18.7
3.9
3.3
Aurobindo Pharma
Buy
665
823
38,970
17,086
19,478
22.1
22.0
44.7
51.4
14.9
12.9
3.3
2.7
24.7
22.7
2.4
2.1
Aventis*
Neutral
4,613
-
10,623
2,411
2,698
18.8
18.8
151.6
163.9
30.4
28.1
4.7
3.8
25.4
27.5
4.0
3.4
Cadila Healthcare
Neutral
409
-
41,907
11,365
12,926
20.0
20.0
18.4
20.5
22.3
20.0
4.9
4.0
24.3
22.2
3.8
3.3
Cipla
Sell
591
462
47,549
16,163
18,711
16.6
16.9
20.7
24.3
28.5
24.3
3.4
3.0
12.6
13.1
3.1
2.6
Dr Reddy's
Reduce
2,314
2,040
38,366
13,734
15,548
17.7
20.2
69.9
102.0
33.1
22.7
3.0
2.7
9.2
12.4
3.0
2.6
GSK Pharma*
Sell
2,396
2,000
20,298
2,968
3,324
13.8
15.9
37.8
46.3
63.4
51.8
11.1
12.2
16.7
22.4
6.6
6.1
Indoco Remedies
Sell
279
136
2,568
1,114
1,297
9.9
13.9
5.6
11.4
49.8
24.5
3.8
3.4
7.7
14.5
2.6
2.2
Stock Watch
December 15, 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Pharmaceuticals
Ipca labs
Neutral
551
-
6,951
3,256
3,647
14.1
17.1
16.2
25.4
34.0
21.7
2.6
2.4
8.0
11.5
2.2
2.0
Lupin
Buy
852
1,091
38,509
16,240
18,562
21.3
21.7
42.5
49.6
20.1
17.2
2.5
2.2
13.3
13.7
2.5
2.1
Natco Pharma
Neutral
1,024
-
17,871
1,886
2,016
32.3
29.5
23.2
22.0
44.3
46.5
9.3
8.2
20.9
17.6
9.3
8.7
Sun Pharma
Buy
514
615
123,393
28,312
31,826
20.7
22.4
18.5
22.3
27.8
23.1
3.2
2.9
11.5
14.0
4.0
3.4
Syngene International
Accumulate
540
587
10,800
1,394
1,818
33.0
36.5
15.8
21.0
34.1
25.7
6.4
5.2
18.6
20.3
7.7
5.9
Power
Tata Power
Neutral
91
-
24,478
32,547
33,806
20.5
20.5
4.7
5.4
19.3
16.9
1.8
1.6
10.5
10.5
1.7
1.7
NTPC
Neutral
177
-
146,151
86,070
101,246
28.3
30.7
12.9
16.2
13.7
10.9
1.4
1.3
10.6
12.4
3.1
2.7
Power Grid
Accumulate
200
223
104,632
29,183
32,946
89.7
90.0
18.0
20.8
11.1
9.6
1.9
1.7
17.7
18.2
7.5
7.0
Real Estate
Prestige Estate
Neutral
290
-
10,860
4,607
5,146
21.0
22.2
7.9
9.8
36.7
29.6
2.3
2.1
10.3
12.0
3.5
3.2
MLIFE
Accumulate
457
522
2,345
487
590
12.3
17.8
21.0
31.2
21.8
14.7
1.1
1.1
5.2
7.4
3.5
2.9
Telecom
Bharti Airtel
Neutral
521
-
208,265
97,903
105,233
36.0
36.3
9.3
11.1
56.0
47.2
2.7
2.6
5.0
5.6
3.1
2.8
Idea Cellular
Neutral
94
-
33,855
35,012
37,689
27.1
27.7
(4.4)
(2.7)
1.5
1.5
(6.8)
(4.6)
2.3
2.0
zOthers
Abbott India
Neutral
5,454
-
11,588
3,244
3,723
14.9
16.1
167.5
209.4
32.6
26.0
7.2
6.0
23.7
24.8
3.2
2.7
Asian Granito
Accumulate
502
570
1,511
1,169
1,286
12.5
12.5
16.0
19.7
31.5
25.5
3.4
3.0
10.7
11.6
1.5
1.4
Bajaj Electricals
Neutral
452
-
4,594
4,646
5,301
6.7
7.6
16.1
22.3
28.1
20.3
4.6
3.9
16.4
19.2
1.0
0.9
Banco Products (India)
Neutral
243
-
1,739
1,530
1,695
13.2
12.7
19.0
20.0
12.8
12.2
2.1
1.8
0.2
0.2
1.0
116.8
Coffee Day Enterprises
Neutral
273
-
5,622
3,494
3,913
17.4
18.0
4.8
5.7
-
47.9
2.4
2.3
-
0.1
2.1
1.8
Ltd
Elecon Engineering
Neutral
88
-
990
171
201
15.0
16.2
36.0
43.0
2.5
2.1
0.2
0.2
0.1
0.1
5.2
4.4
Garware Wall Ropes
Neutral
909
-
1,989
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
860
-
1,983
1,717
1,866
11.8
12.3
47.9
49.8
17.9
17.3
2.8
2.4
15.6
15.7
0.9
121.8
Hitachi
Neutral
2,506
-
6,815
2,355
2,715
10.3
10.8
49.0
60.9
51.2
41.2
12.0
9.5
0.2
0.2
2.9
2.5
HSIL
Neutral
486
-
3,515
2,240
2,670
14.6
15.0
17.0
22.0
28.6
22.1
2.4
2.2
0.1
0.1
1.8
1.5
Interglobe Aviation
Neutral
1,137
-
43,708
22,570
27,955
14.2
15.0
63.6
81.8
17.9
13.9
9.4
8.0
0.5
0.6
1.6
1.2
Jyothy Laboratories
Neutral
370
-
6,719
1,781
2,044
14.1
15.0
9.4
10.5
39.5
35.2
8.4
7.9
0.2
0.2
4.0
3.4
Linc Pen & Plastics
Neutral
360
-
532
420
462
9.3
9.3
15.3
17.1
23.5
21.0
4.0
4.1
16.9
19.5
1.3
1.2
M M Forgings
Neutral
1,029
-
1,242
542
642
20.1
21.0
41.6
56.8
24.7
18.1
3.4
2.9
0.1
0.2
2.7
2.3
Mirza International
Neutral
154
-
1,858
1,148
1,285
18.0
18.0
8.0
9.4
19.2
16.5
3.2
2.7
16.3
16.1
1.8
1.6
Navkar Corporation
Buy
188
265
2,834
561
617
41.5
41.5
11.5
12.7
16.4
14.8
1.7
1.5
10.5
10.4
5.7
5.0
Nilkamal
Neutral
1,785
-
2,663
2,317
2,525
11.4
11.1
96.0
105.0
18.6
17.0
3.2
2.8
0.2
0.2
1.1
1.0
Stock Watch
December 15, 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
272
-
2,289
1,987
2,379
7.6
9.0
12.4
18.3
21.9
14.9
3.1
2.7
8.2
13.2
1.3
1.1
Radico Khaitan
Neutral
271
-
3,606
1,811
1,992
13.2
13.2
8.1
8.8
33.4
30.8
3.4
3.7
10.1
12.0
2.3
2.1
Relaxo Footwears
Neutral
656
-
7,895
1,981
2,310
13.7
14.5
12.0
15.5
54.7
42.3
10.6
8.6
0.2
0.2
4.0
3.5
Siyaram Silk Mills
Accumulate
700
800
3,280
1,769
1,981
12.7
12.7
22.6
26.2
30.9
26.7
4.8
4.1
15.5
15.5
2.0
1.8
Styrolution ABS India* Neutral
1,055
-
1,855
1,800
1,980
8.0
8.1
42.0
46.2
25.1
22.8
2.8
2.5
0.1
0.1
1.1
1.1
Surya Roshni
Neutral
369
-
1,617
4,870
5,320
7.7
7.8
22.8
28.1
16.2
13.1
2.1
1.9
0.1
0.1
0.6
0.5
TVS Srichakra
Neutral
3,314
-
2,538
2,729
2,893
12.7
12.5
248.5
265.0
13.3
12.5
3.8
3.1
0.3
0.3
0.9
0.9
Visaka Industries
Neutral
617
-
980
1,104
1,214
12.1
12.6
31.0
37.9
19.9
16.3
2.4
2.2
0.1
0.1
1.1
1.0
VIP Industries
Buy
338
400
4,772
1,450
1,693
10.4
10.5
6.5
7.8
51.6
43.2
10.9
9.5
21.1
22.1
3.3
2.8
Navin Fluorine
Accumulate
693
730
3,417
945
1,154
17.5
17.9
28.7
34.8
24.2
19.9
4.0
3.4
-
-
3.1
2.5
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on December 14, 2017
Market Outlook
December 15, 2017
Research Team Tel: 022 - 39357800
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