Market Outlook

September 16, 2016

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian markets are likely to open positive taking global cues.

BSE Sensex

0.1

28,413

Nifty

0.2

8,743

US markets gained on Thursday after weak U.S. retail sales data undermined the

argument that the Federal Reserve will raise interest rates next week.

Mid Cap

(0.3)

(33)

13,092

Small Cap

0.3

12,746

European markets closed broadly up on Thursday after the Bank of England kept

rates at 0.25% and announced there would be no change to its £70 billion ($92

Bankex

(0.6)

(134)

22,736

billion) quantitative easing program.

Indian markets rose for a second consecutive session on Thursday, even as the

Global Indices

Chg (%)

(Pts)

(Close)

underlying sentiment remained cautious amid the oil price downturn and concerns

Dow Jones

1.0

178

18,212

over the global central banks' ability to stimulate growth through ultra-easy

Nasdaq

1.5

5,250

monetary policies.

FTSE

0.9

6,730

News Analysis

Nikkei

(1.3)

(209)

16,405

 Transformers and Rectifiers bags `103cr order from PGCIL

Hang Seng

0.6

145

23,336

Detailed analysis on Pg2

Shanghai Com

(0.7)

(21)

3,003

Investor’s Ready Reckoner

Key Domestic & Global Indicators

Advances / Declines

BSE

NSE

Stock Watch: Latest investment recommendations on 150+ stocks

Advances

1,488

854

Refer Pg5 onwards

Declines

1,269

741

Unchanged

187

Top Picks

CMP

Target

Upside

Company

Sector

Rating

(`)

(%)

Volumes (` Cr)

Amara Raja Batteries Auto & Auto Ancillary Accumulate

1,039

1,174

13.0

BSE

3,801

HCL Tech

Buy

778

1,000

28.6

NSE

19,232

Bharat Electronics

Capital Goods

Buy

1,219

1,414

16.0

Equitas Holdings

Financials

Buy

178

235

31.8

Navkar Corporation Others

Buy

200

265

32.7

Net Inflows (` Cr)

Net

Mtd

Ytd

More Top Picks on Pg3

FII

(473)

853

41,522

MFs

(185)

(840)

9,269

Key Upcoming Events

Consensus

Date

Region

Event Description

Reading

Expectations

Top Gainers

Price (`)

Chg (%)

Sep 16

BOE Announces rates

0.25

Sep 20

Housing rates

1,211.0

1,193.0

Tv18Brdcst

9.2

Sep 20

Building permits

1,144.0

1,170.0

Jubilant

604

8.5

Sep 21

FOMC rate decision

0.5

Suntv

507

5.5

Sep 22

Euro Zone Consumer Confidence

(8.5)

Unitech

5.4

Sep 22

Existing home sales

5.39

5.45

6.(

Dishtv

100

4.9

More Events on Pg4

Top Losers

Price (`)

Chg (%)

Beml

900

(12.3)

Prestige

184

(4.8)

Pcjeweller

494

(4.5)

Ashokley

(3.6)

Trent

232

(3.2)

As on September 15, 2016

www.angelbroking.com

Market Outlook

September 16, 2016

News Analysis

Transformers and Rectifiers bags `103cr order from PGCIL

Power equipment maker Transformers and Rectifiers announced it has bagged

order worth `103cr from Power Grid Corporation of India Ltd to supply power

transformers.

Transformers and Rectifiers (India) Ltd has been awarded the order for power

transformers up to

220 kV class amounting to

`103cr from Power Grid

Corporation of India Ltd (PGCIL).

With this order, the company's order book as on date stands at `960cr. As per

management the company continuously thrives to deliver quality products and

services and over a period of time has become a leading manufacturer of

transformers in the country.

Economic and Political News

 Petrol, diesel consumption hits 5-year high in August

 Mines ministry to seek bids for exploration of 20 blocks

 Textile package reforms yet to significantly boost jobs, productivity

Corporate News

 NMDC, MOIL's `8,400cr buyback offers to open Sept 19

 PVR to raise `250cr via NCDs

 ONGC inks deal to buy extra 11% stake in Russian Vankor fields

 Future Group to add 6 more stores to Central brand

 Maruti to launch seven new models in 2017

www.angelbroking.com

Market Outlook

September 16, 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

17,753

1,039

1,174

13.0

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

29,262

1,219

1,414

16.0

strong market positioning, indicate that good times are ahead

for BEL.

The stock is trading at attractive valuations and is factoring all

HCL Tech

1,09,736

778

1,000

28.6

the bad news.

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

Infosys

2,39,192

1,041

1,370

31.6

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

2,717

269

306

13.9

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

4,901

514

578

12.4

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

8,312

285

325

14.1

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

5,980

178

235

31.8

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

1,420

616

684

11.1

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

6,259

191

225

17.5

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

growth.

Speedier execution and speedier sales, strong revenue visibilty

Mahindra Lifespace

1,764

430

522

21.4

in short-to-long run, attractive valuations

Massive capacity expansion along with rail advantage at ICD

Navkar Corporation

2,848

200

265

32.7

as well CFS augurs well for the company

Earnings boost on back of stable material prices and

Radico Khaitan

1,408

106

125

18.1

favourable pricing environment. Valuation discount to peers

provides additional comfort

Strong brands and distribution network would boost growth

Siyaram Silk Mills

1,197

1,277

1,469

15.1

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

1,828

307

363

18.4

and anticipated growth in ad spends by corporates to benefit

the stock.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

September 16, 2016

Key Upcoming Events

Global economic events release calendar

Date

Time

Country

Event Description

Unit

Period

Bloomberg Data

Last Reported Estimated

Sep 16, 2016

4:30PM

BOE Announces rates

% Ratio

Sep 15

0.25

Sep 20, 2016

6:00PM

Housing Starts

Thousands

Aug

1,211.00

1,193.00

6:00PM

Building permits

Thousands

Aug

1,144.00

1,170.00

Sep 21, 2016

11:30PM

FOMC rate decision

Sep 21

0.50

Sep 22, 2016

7:30PM

Euro Zone

Euro-Zone Consumer Confidence

Value

Sep A

(8.50)

7:30PM

Existing home sales

Million

Aug

5.39

5.45

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

New home sales

Thousands

Aug

654.00

580.00

Sep 27, 2016

7:30PM

Consumer Confidence

S.A./ 1985=100

Sep

101.10

98.00

Sep 29, 2016

6:00PM

GDP Qoq (Annualised)

% Change

2Q T

1.10

1.30

1:25PM

Germany

Unemployment change (000's)

Thousands

Sep

(7.00)

Sep 30, 2016

2:00PM

GDP (YoY)

% Change

2Q F

2.20

Oct 1, 2016

6:30AM

China

PMI Manufacturing

Value

Sep

50.40

Oct 3, 2016

2:00PM

PMI Manufacturing

Value

Sep

53.30

Oct 4, 2016

11:00AM

India

RBI Reverse Repo rate

Oct 4

6.00

11:00AM

India

RBI Repo rate

Oct 4

6.50

11:00AM

India

RBI Cash Reserve ratio

Oct 4

4.00

Source: Bloomberg, Angel Research

Market Outlook

September 16, 2016

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

9.0

12.0

8.3

9.9

7.8

7.9

8.0

7.5

7.6

10.0

7.2

7.1

8.0

6.6

6.7

7.0

6.4

6.0

3.7

5.8

6.0

4.0

1.9

2.0

1.1

2.0

0.3

5.0

4.0

(2.0)

(0.9)

(1.6)

(1.3)

(4.0)

(2.4)

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

5.6

5.7

5.8

54.0

6.0

5.4

5.5

5.0

5.3

5.1

53.0

4.8

5.0

4.4

52.0

4.0

51.0

50.0

3.0

49.0

2.0

48.0

1.0

47.0

46.0

Source: MOSPI, Angel Research

Source: Market, Angel Research; Note: Level above 50 indicates expansion

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 16, 2016

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

57,909

(2.1)

16.7

22.3

Russia

Micex

1,997

1.4

7.2

15.9

India

Nifty

8,743

1.8

6.8

11.6

China

Shanghai Composite

3,003

(3.9)

4.5

(5.3)

South Africa

Top 40

45,713

1.5

(1.0)

5.8

Mexico

Mexbol

45,923

(6.0)

1.2

4.5

Indonesia

LQ45

907

(3.8)

4.9

17.7

Malaysia

KLCI

1,653

(1.9)

0.7

4.4

Thailand

SET 50

932

(5.9)

2.4

3.0

USA

Dow Jones

18,212

(2.9)

2.0

7.7

FTSE

6,730

(3.0)

13.1

10.3

Japan

Nikkei

16,405

(1.2)

3.0

(7.8)

Germany

DAX

10,431

(3.4)

8.7

4.7

France

CAC

4,373

(2.8)

5.2

(1.4)

Source: Bloomberg, Angel Research

www.angelbroking.com

Stock Watch

September 16, 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

222

4,307

1,937

2,164

13.3

14.3

9.0

11.0

24.6

20.1

4.3

3.7

18.4

19.8

2.3

2.0

United Phosphorus

Neutral

684

34,683

15,176

17,604

18.5

37.4

44.6

18.3

15.3

3.6

3.0

21.4

21.2

2.4

2.0

Auto & Auto Ancillary

Ashok Leyland

Buy

111

23,208

22,407

26,022

10.6

5.2

6.4

15.6

12.7

3.5

3.0

23.6

24.7

1.1

0.9

Bajaj Auto

Neutral

2,932

84,841

25,093

27,891

19.5

19.2

143.9

162.5

20.4

18.0

5.7

4.9

30.3

29.4

3.1

2.7

Bharat Forge

Neutral

869

20,240

7,726

8,713

20.5

21.2

35.3

42.7

24.6

20.4

4.6

4.1

18.9

20.1

2.7

2.3

Eicher Motors

Neutral

22,440

60,950

16,583

20,447

17.5

18.0

598.0

745.2

37.5

30.1

12.8

9.8

41.2

38.3

3.5

2.8

Gabriel India

Neutral

116

1,661

1,544

1,715

9.0

9.3

5.4

6.3

21.4

18.4

4.0

3.6

18.9

19.5

1.0

0.9

Hero Motocorp

Neutral

3,523

70,342

31,253

35,198

15.3

15.0

172.3

192.1

20.5

18.3

7.5

6.4

38.9

37.0

2.1

1.9

Jamna Auto Industries Neutral

214

1,707

1,486

1,620

9.8

9.9

15.0

17.2

14.3

12.4

3.1

2.6

21.8

21.3

1.2

1.1

L G Balakrishnan & Bros Neutral

577

906

1,302

1,432

11.6

11.9

43.7

53.0

13.2

10.9

1.9

1.7

13.8

14.2

0.8

0.7

Mahindra and Mahindra Neutral

1,406

87,301

46,534

53,077

11.6

11.7

67.3

78.1

20.9

18.0

3.4

3.0

15.4

15.8

1.8

1.6

Maruti

Neutral

5,443

164,433

69,186

82,217

14.7

14.4

198.5

241.4

27.4

22.6

5.3

4.3

20.2

20.0

2.1

1.7

Minda Industries

Neutral

310

2,463

2,728

3,042

9.0

9.1

68.2

86.2

4.6

3.6

1.0

0.8

23.8

24.3

1.0

0.8

Motherson Sumi

Neutral

312

41,323

45,896

53,687

7.8

8.3

13.0

16.1

24.0

19.4

7.7

6.2

34.7

35.4

1.0

0.8

Rane Brake Lining

Neutral

1,296

1,025

511

562

11.3

11.5

28.1

30.9

46.1

41.9

7.0

6.4

15.3

15.0

2.1

2.0

Setco Automotive

Neutral

598

741

837

13.0

15.2

17.0

2.9

2.6

0.5

0.4

15.8

16.3

1.2

1.1

Tata Motors

Neutral

557

160,889

300,209

338,549

8.9

8.4

42.7

54.3

13.1

10.3

2.1

1.8

15.6

17.2

0.7

0.6

TVS Motor

Neutral

321

15,255

13,390

15,948

6.9

7.1

12.8

16.5

25.2

19.4

6.3

5.0

26.3

27.2

1.2

1.0

Amara Raja Batteries

Accumulate

1,039

1,174

17,753

5,429

6,471

17.5

17.6

35.3

43.5

29.4

23.9

6.8

5.5

25.3

24.8

3.1

2.5

Exide Industries

Neutral

195

16,545

7,439

8,307

15.0

8.1

9.3

24.0

20.9

3.4

3.0

14.3

16.7

1.8

1.6

Apollo Tyres

Neutral

215

10,962

12,877

14,504

14.3

13.9

21.4

23.0

10.1

9.4

1.6

1.4

16.4

15.2

1.0

0.9

Ceat

Accumulate

1,063

1,119

4,301

7,524

8,624

13.0

12.7

131.1

144.3

8.1

7.4

1.5

1.3

19.8

18.6

0.7

0.6

JK Tyres

Neutral

145

3,288

7,455

8,056

15.0

21.8

24.5

6.7

5.9

1.4

1.1

22.8

21.3

0.6

0.5

Swaraj Engines

Neutral

1,206

1,498

660

810

15.2

16.4

54.5

72.8

22.1

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

18.9

2.2

2.0

10.8

11.4

0.8

0.7

Indag Rubber

Neutral

180

472

286

326

19.8

16.8

11.7

13.3

15.4

13.5

2.6

2.4

17.8

17.1

1.3

1.1

Capital Goods

ACE

Neutral

424

709

814

4.1

4.6

1.4

2.1

30.6

20.4

1.3

1.2

4.4

6.0

0.8

0.7

BEML

Buy

900

1,157

3,749

3,451

4,055

6.3

9.2

31.4

57.9

28.7

15.6

1.7

1.6

6.3

10.9

1.2

1.0

Bharat Electronics

Buy

1,219

1,414

29,262

8,137

9,169

16.8

17.2

58.7

62.5

20.8

19.5

3.2

2.9

44.6

46.3

2.6

2.3

www.angelbroking.com

Stock Watch

September 16, 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

Accumulate

384

407

12,699

6,511

7,514

7.9

8.7

12.9

16.3

29.8

23.6

5.4

4.7

16.7

18.5

1.7

1.4

BGR Energy

Neutral

117

842

16,567

33,848

6.0

5.6

7.8

5.9

15.0

19.8

0.9

0.8

4.7

4.2

0.2

0.1

BHEL

Neutral

150

36,787

28,797

34,742

2.8

2.3

6.9

65.4

21.8

1.1

1.3

4.8

0.9

0.7

Blue Star

Accumulate

514

578

4,901

4,351

5,024

6.4

7.1

17.2

20.6

29.9

24.9

19.5

16.2

23.1

24.1

1.2

1.0

Crompton Greaves

Neutral

5,017

5,777

6,120

5.9

7.0

3.3

4.5

24.3

17.8

1.1

1.0

4.4

5.9

0.8

0.7

Greaves Cotton

Neutral

135

3,303

1,755

1,881

16.8

16.9

7.8

8.5

17.3

15.9

3.5

3.2

20.6

20.9

1.6

1.4

Inox Wind

Buy

194

286

4,306

5,605

6,267

15.7

16.4

24.8

30.0

7.8

6.5

2.2

1.6

25.9

24.4

0.8

0.7

KEC International

Neutral

125

3,221

9,294

10,186

7.9

8.1

9.9

11.9

12.7

10.5

1.9

1.6

15.6

16.3

0.6

0.5

Thermax

Neutral

823

9,805

5,421

5,940

7.3

25.7

30.2

32.0

27.3

3.9

3.5

12.2

13.1

1.7

1.6

VATech Wabag

Buy

557

681

3,036

3,136

3,845

8.9

9.1

26.0

35.9

21.4

15.5

2.7

2.3

13.4

15.9

0.9

0.7

Cement

ACC

Neutral

1,606

30,158

11,225

13,172

13.2

16.9

44.5

75.5

36.1

21.3

3.4

3.2

11.2

14.2

2.7

2.3

Ambuja Cements

Neutral

261

51,845

9,350

10,979

18.2

22.5

5.8

9.5

45.0

27.5

3.8

3.4

10.2

12.5

5.5

4.7

India Cements

Neutral

148

4,534

4,364

4,997

18.5

19.2

7.9

11.3

18.7

13.1

1.3

8.0

8.5

1.8

1.6

JK Cement

Neutral

799

5,585

4,398

5,173

15.5

17.5

31.2

55.5

25.6

14.4

3.1

2.7

12.0

15.5

1.8

1.5

J K Lakshmi Cement

Neutral

472

5,555

2,913

3,412

14.5

19.5

7.5

22.5

63.0

21.0

3.9

3.3

12.5

18.0

2.5

2.1

Orient Cement

Neutral

208

4,252

2,114

2,558

18.5

20.5

8.1

11.3

25.6

18.4

3.8

3.2

9.0

14.0

2.6

2.1

UltraTech Cement

Neutral

3,929

107,838

25,768

30,385

21.0

23.5

111.0

160.0

35.4

24.6

4.5

4.0

13.5

15.8

4.3

3.6

Construction

ITNL

Neutral

3,026

8,946

10,017

31.0

31.6

8.1

9.1

11.4

10.1

0.4

4.2

5.0

3.7

3.4

KNR Constructions

Accumulate

707

802

1,989

1,385

1,673

14.7

14.0

41.2

48.5

17.2

14.6

3.2

2.8

14.9

15.2

1.5

1.3

Larsen & Toubro

Buy

1,471

1,700

137,061

67,665

77,249

10.7

11.5

57.3

71.2

25.7

20.7

2.4

2.2

12.6

14.3

2.2

1.9

Gujarat Pipavav Port

Neutral

182

8,779

705

788

52.2

51.7

5.0

5.6

36.3

32.4

3.6

3.2

11.2

12.1

10.3

Nagarjuna Const.

Neutral

4,789

8,842

9,775

9.1

8.8

5.3

6.4

16.3

13.5

1.3

1.2

8.2

9.1

0.7

0.6

PNC Infratech

Buy

122

143

3,131

2,350

2,904

13.1

13.2

9.0

8.8

13.6

13.9

0.5

0.4

15.9

13.9

1.5

1.2

Simplex Infra

Neutral

336

1,662

6,829

7,954

10.5

31.4

37.4

10.7

9.0

1.1

1.0

9.9

13.4

0.7

0.6

Power Mech Projects

Neutral

480

706

1,801

2,219

12.7

14.6

72.1

113.9

6.7

4.2

1.2

1.0

16.8

11.9

0.4

0.3

Sadbhav Engineering

Neutral

291

4,994

3,598

4,140

10.3

10.6

9.0

11.9

32.4

24.5

3.4

3.0

9.9

11.9

1.7

1.4

NBCC

Neutral

254

15,219

7,428

9,549

7.9

8.6

8.2

11.0

30.9

23.1

1.5

1.2

28.2

28.7

1.8

1.3

MEP Infra

Neutral

708

1,877

1,943

30.6

29.8

3.0

4.2

14.5

10.4

7.0

4.7

0.6

1.8

1.6

SIPL

Neutral

101

3,549

1,036

1,252

65.5

66.2

(8.4)

(5.6)

3.8

4.3

(22.8)

(15.9)

11.6

9.7

www.angelbroking.com

Stock Watch

September 16, 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

257

8,674

1,725

1,935

16.0

19.1

11.4

13.9

22.6

18.5

3.1

3.0

13.4

15.3

4.0

3.5

Financials

Axis Bank

Neutral

589

140,520

58,081

66,459

3.5

32.4

44.6

18.2

13.2

2.4

2.1

13.6

16.5

Bank of Baroda

Neutral

167

38,387

19,980

23,178

1.8

11.5

17.3

14.5

9.6

1.7

1.4

8.3

10.1

Canara Bank

Neutral

305

16,545

15,225

16,836

1.8

14.5

28.0

21.0

10.9

1.5

1.2

5.8

8.5

Dewan Housing Finance Accumulate

285

325

8,312

2,225

2,688

2.9

29.7

34.6

9.6

8.2

1.6

1.3

16.1

16.8

Equitas Holdings

Buy

178

235

5,980

939

1,281

11.7

11.5

5.8

8.2

30.7

21.7

2.7

2.4

10.9

11.5

Federal Bank

Neutral

12,285

9,353

10,623

2.9

4.4

5.8

16.3

12.3

1.6

1.4

9.5

11.0

HDFC

Neutral

1,409

222,774

11,475

13,450

3.4

45.3

52.5

31.1

26.8

6.0

5.3

20.2

20.5

HDFC Bank

Accumulate

1,280

1,350

323,949

46,097

55,433

4.5

58.4

68.0

21.9

18.8

3.8

3.2

18.8

18.6

ICICI Bank

Neutral

271

157,435

39,029

45,903

3.3

16.7

16.3

16.2

16.6

2.0

1.8

10.1

12.4

LIC Housing Finance

Neutral

565

28,501

3,712

4,293

2.6

2.5

39.0

46.0

14.5

12.3

2.7

2.3

19.9

20.1

Punjab Natl.Bank

Neutral

139

27,235

23,532

23,595

2.3

2.4

6.8

12.6

20.4

11.0

3.2

2.2

3.3

6.5

RBL Bank

Accumulate

299

325

11,070

1,783

2,309

2.6

12.7

16.4

23.6

18.3

2.6

2.3

12.8

13.3

South Ind.Bank

Neutral

3,153

6,435

7,578

2.5

2.7

3.1

8.7

7.5

1.1

0.9

10.1

11.2

St Bk of India

Neutral

256

198,572

88,650

98,335

2.6

13.5

18.8

19.0

13.6

1.8

1.6

7.0

8.5

Union Bank

Neutral

144

9,865

13,450

14,925

2.3

25.5

34.5

5.6

4.2

0.8

0.7

7.5

10.2

Yes Bank

Neutral

1,222

51,438

8,978

11,281

3.3

3.4

74.0

90.0

16.5

13.6

3.1

2.7

17.0

17.2

FMCG

Asian Paints

Neutral

1,170

112,255

17,128

18,978

16.8

16.4

19.1

20.7

61.3

56.5

21.3

20.1

34.8

35.5

6.5

5.8

Britannia

Neutral

3,528

42,322

9,795

11,040

14.6

14.9

80.3

94.0

43.9

37.5

18.1

14.0

41.2

4.2

3.7

Colgate

Neutral

963

26,181

4,605

5,149

23.4

23.8

26.9

40.5

35.8

22.4

17.5

64.8

66.8

5.6

5.0

Dabur India

Neutral

293

51,516

8,315

9,405

19.8

20.7

8.1

9.2

36.2

31.8

10.1

8.3

31.6

31.0

5.8

5.1

GlaxoSmith Con*

Neutral

6,117

25,726

4,350

4,823

21.2

21.4

179.2

196.5

34.1

31.1

9.1

7.7

27.1

26.8

5.3

4.7

Godrej Consumer

Neutral

1,667

56,764

10,235

11,428

18.4

18.6

41.1

44.2

40.6

37.7

9.0

7.6

24.9

24.8

5.6

5.0

HUL

Neutral

914

197,855

35,252

38,495

17.6

17.4

20.4

21.9

44.8

41.8

36.8

32.3

82.2

77.3

5.4

5.0

ITC

Accumulate

255

283

307,926

40,059

44,439

39.0

39.2

9.1

10.1

28.1

25.3

7.6

6.7

27.2

26.5

7.2

6.4

Marico

Neutral

292

37,621

6,430

7,349

18.8

19.5

6.4

7.7

45.6

37.9

13.8

11.6

33.2

32.5

5.7

4.9

Nestle*

Neutral

6,296

60,705

10,073

11,807

20.7

21.5

124.8

154.2

50.5

40.8

20.7

18.6

34.8

36.7

5.8

5.0

Tata Global

Neutral

137

8,646

8,675

9,088

9.8

7.4

8.2

18.5

16.7

2.1

2.0

7.9

8.1

0.9

Procter & Gamble

Accumulate

6,705

7,369

21,765

2,939

3,342

23.2

23.0

146.2

163.7

45.9

41.0

102.7

98.5

25.3

23.5

6.9

6.0

Hygiene

www.angelbroking.com

Stock Watch

September 16, 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

109,736

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

1,041

1,370

239,192

69,934

79,025

27.5

64.8

72.0

16.1

14.5

3.5

3.2

22.0

22.3

2.9

2.5

TCS

Buy

2,328

3,004

458,725

121,684

136,286

27.3

135.0

150.1

17.2

15.5

5.7

5.3

33.2

33.9

3.5

3.1

Tech Mahindra

Buy

463

700

44,977

30,347

33,685

17.0

37.5

41.3

12.4

11.2

2.7

2.3

21.8

20.7

1.2

1.0

Wipro

Buy

478

680

116,274

51,631

55,822

21.7

17.9

35.9

36.9

13.3

13.0

2.8

2.6

19.0

18.1

1.9

1.7

Media

D B Corp

Neutral

400

7,349

2,297

2,590

27.4

28.2

21.0

23.4

19.0

17.1

4.4

3.9

23.7

23.1

3.0

2.6

HT Media

Neutral

1,957

2,693

2,991

12.6

12.9

7.9

9.0

10.7

9.3

0.9

0.8

7.8

8.3

0.3

0.2

Jagran Prakashan

Buy

191

225

6,259

2,355

2,635

28.0

10.8

12.5

17.7

15.3

3.8

3.3

21.7

2.7

2.3

Sun TV Network

Neutral

507

19,998

2,850

3,265

70.1

71.0

26.2

30.4

19.4

16.7

5.0

4.4

24.3

25.6

6.6

5.6

Hindustan Media

Neutral

280

2,055

1,016

1,138

24.3

25.2

27.3

30.1

10.3

9.3

2.0

1.7

16.2

15.8

1.3

1.2

Ventures

TV Today Network

Buy

307

363

1,828

637

743

27.5

18.4

21.4

16.7

14.3

2.9

2.5

17.4

17.2

2.5

2.0

Metals & Mining

Coal India

Neutral

324

204,366

84,638

94,297

21.4

22.3

24.5

27.1

13.2

11.9

5.5

5.2

42.6

46.0

1.9

1.7

Hind. Zinc

Neutral

219

92,344

14,252

18,465

55.9

48.3

15.8

21.5

13.8

10.2

2.3

2.0

17.0

20.7

6.5

5.0

Hindalco

Neutral

145

29,984

107,899

112,095

7.4

8.2

9.2

13.0

15.8

11.2

0.8

0.7

4.8

6.6

0.8

0.7

JSW Steel

Neutral

1,754

42,402

53,201

58,779

16.1

16.2

130.6

153.7

13.4

11.4

1.8

1.6

14.0

14.4

1.6

1.4

NMDC

Neutral

103

40,737

6,643

7,284

44.4

47.7

7.1

7.7

14.5

13.3

1.3

1.2

8.8

9.2

3.9

3.5

SAIL

Neutral

19,721

47,528

53,738

(0.7)

2.1

(1.9)

2.6

18.4

0.5

(1.6)

3.9

1.3

1.2

Vedanta

Neutral

166

49,095

71,744

81,944

19.2

21.7

13.4

20.1

12.4

8.2

1.1

1.0

8.4

11.3

1.1

0.8

Tata Steel

Neutral

367

35,634

121,374

121,856

7.2

8.4

18.6

34.3

19.7

10.7

1.2

1.1

6.1

10.1

0.9

Oil & Gas

Cairn India

Neutral

192

36,054

9,127

10,632

4.3

20.6

8.8

11.7

21.9

16.4

0.7

3.3

4.2

5.4

4.5

GAIL

Neutral

385

48,855

56,220

65,198

9.3

10.1

27.1

33.3

14.2

11.6

1.3

1.2

9.3

10.7

1.1

0.9

ONGC

Neutral

248

212,048

137,222

152,563

15.0

21.8

19.5

24.1

12.7

10.3

1.1

1.0

8.5

10.1

1.8

1.6

Indian Oil Corp

Neutral

559

135,674

373,359

428,656

5.9

5.5

54.0

59.3

10.4

9.4

1.6

1.4

16.0

15.6

0.5

0.4

Reliance Industries

Neutral

1,062

344,494

301,963

358,039

12.1

12.6

87.7

101.7

12.1

10.5

1.2

1.1

10.7

11.3

1.6

1.3

Pharmaceuticals

Alembic Pharma

Neutral

629

11,854

3,483

4,083

20.2

21.4

24.3

30.4

25.9

20.7

5.9

4.7

25.5

25.3

3.3

2.8

Aurobindo Pharma

Accumulate

782

877

45,754

15,720

18,078

23.7

41.4

47.3

18.9

16.5

4.9

3.8

29.6

26.1

3.1

2.7

Sanofi India*

Neutral

4,317

9,942

2,357

2,692

17.3

153.5

169.2

28.1

25.5

4.8

3.9

25.8

28.4

3.9

3.2

Cadila Healthcare

Neutral

385

39,399

11,126

13,148

22.0

17.1

20.0

22.5

19.2

5.8

4.6

28.8

26.6

3.5

2.9

Cipla

Sell

584

490

46,965

15,378

18,089

17.4

18.4

21.6

27.2

27.1

21.5

3.5

3.1

13.7

15.2

3.3

2.7

www.angelbroking.com

Stock Watch

September 16, 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

3,142

52,055

16,043

18,119

23.1

24.7

126.0

157.8

24.9

19.9

3.7

3.2

15.7

17.1

3.2

2.8

Dishman Pharma

Sell

180

2,902

1,718

1,890

22.7

22.8

9.5

11.3

18.9

15.9

1.8

1.7

10.1

10.9

2.2

1.9

GSK Pharma*

Neutral

2,977

25,217

3,528

3,811

16.6

18.8

51.8

59.4

57.5

50.1

15.4

15.3

26.3

30.6

6.9

6.5

Indoco Remedies

Sell

318

225

2,926

1,112

1,289

18.2

13.2

15.6

24.1

20.4

4.3

3.6

19.2

2.7

2.4

Ipca labs

Accumulate

576

613

7,271

3,303

3,799

15.3

17.3

19.7

33.3

29.3

2.9

2.7

9.1

9.4

2.3

2.0

Lupin

Buy

1,545

1,809

69,666

15,912

18,644

26.4

26.7

58.1

69.3

26.6

22.3

5.2

4.2

21.4

20.9

4.5

3.7

Sun Pharma

Buy

786

944

189,226

31,129

35,258

30.0

30.9

28.0

32.8

28.1

24.0

4.3

3.6

18.7

18.9

5.7

4.8

Power

Tata Power

Neutral

20,231

36,916

39,557

17.4

27.1

5.1

6.3

14.7

11.9

1.3

1.2

9.0

10.3

1.6

1.4

NTPC

Neutral

153

126,485

86,605

95,545

17.5

20.8

11.8

13.4

13.0

11.5

1.3

1.2

10.5

11.1

2.8

Power Grid

Neutral

175

91,527

25,763

29,762

74.3

73.1

14.8

17.3

11.8

10.1

1.9

1.6

16.9

17.5

7.8

7.4

Real Estate

MLIFE

Buy

430

522

1,764

1,152

1,300

22.7

24.6

29.9

35.8

14.4

12.0

1.1

1.0

7.6

8.6

2.2

1.9

Telecom

Bharti Airtel

Neutral

322

128,636

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

30,355

40,133

43,731

37.2

37.1

6.4

6.5

13.2

13.0

1.1

1.0

8.2

7.6

1.8

1.5

zOthers

Abbott India

Neutral

4,560

9,690

3,153

3,583

14.1

14.4

152.2

182.7

30.0

25.0

147.1

125.6

25.6

26.1

2.8

2.4

Bajaj Electricals

Accumulate

269

306

2,717

5,099

5,805

5.6

5.9

11.4

14.6

23.6

18.4

3.2

2.8

13.4

15.1

0.5

Finolex Cables

Neutral

430

6,577

2,883

3,115

12.0

12.1

14.2

18.6

30.3

23.1

16.1

14.1

15.8

14.6

2.0

1.8

Goodyear India*

Accumulate

616

684

1,420

1,598

1,704

10.4

10.2

49.4

52.6

12.5

11.7

57.5

50.5

18.2

17.0

0.6

77.6

Hitachi

Neutral

1,503

4,087

2,081

2,433

8.8

8.9

33.4

39.9

45.0

37.7

36.3

30.3

22.1

21.4

2.0

1.6

Jyothy Laboratories

Neutral

321

5,818

1,440

2,052

11.5

13.0

8.5

10.0

37.8

32.1

9.2

8.5

18.6

19.3

4.3

3.0

Page Industries

Neutral

14,588

16,272

2,450

3,124

20.1

17.6

299.0

310.0

48.8

47.1

324.9

248.0

47.1

87.5

6.7

5.3

Relaxo Footwears

Neutral

430

5,156

2,085

2,469

9.2

8.2

7.6

8.0

56.8

54.1

22.0

18.8

17.9

18.8

2.6

2.2

Siyaram Silk Mills

Buy

1,277

1,469

1,197

1,799

2,040

11.6

11.7

104.9

122.4

12.2

10.4

2.0

1.7

16.4

0.9

0.8

Styrolution ABS India*

Neutral

584

1,027

1,440

1,537

9.2

9.0

40.6

42.6

14.4

13.7

36.7

33.4

12.3

11.6

0.7

0.6

TVS Srichakra

Accumulate

2,782

2,932

2,130

2,304

2,614

13.7

13.8

231.1

266.6

12.0

10.4

312.6

246.1

33.9

29.3

0.9

0.8

HSIL

Neutral

344

2,484

2,384

2,515

15.8

16.3

15.3

19.4

22.5

17.7

22.3

19.2

7.8

9.3

1.2

1.1

Kirloskar Engines India

Neutral

301

4,349

2,554

2,800

9.9

10.0

10.5

12.1

28.6

24.9

12.0

11.3

10.7

11.7

1.3

1.2

Ltd

M M Forgings

Neutral

422

509

546

608

20.4

20.7

41.3

48.7

10.2

8.7

57.8

51.2

16.6

17.0

0.8

0.7

Banco Products (India)

Neutral

233

1,668

1,353

1,471

12.3

12.4

14.5

16.3

16.1

14.3

22.2

20.0

14.5

14.6

1.2

126.2

Competent Automobiles Neutral

200

123

1,137

1,256

3.1

2.7

28.0

23.6

7.1

8.5

38.5

34.8

14.3

11.5

0.1

www.angelbroking.com

Stock Watch

September 16, 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

1,338

1,997

1,995

2,165

10.7

10.4

69.8

80.6

19.2

16.6

76.5

66.4

16.6

16.5

1.0

0.9

Visaka Industries

Neutral

199

315

1,051

1,138

10.3

10.4

21.0

23.1

9.5

8.6

25.5

23.8

9.0

9.2

0.6

0.5

Transport Corporation of

Neutral

182

1,393

2,671

2,911

8.5

8.8

13.9

15.7

13.1

11.6

1.8

1.6

13.7

13.8

0.6

India

Elecon Engineering

Accumulate

644

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

201

879

3,342

3,625

7.8

7.5

17.3

19.8

11.6

10.2

22.0

17.7

10.5

10.8

0.5

MT Educare

Neutral

127

506

366

417

17.7

18.2

9.4

10.8

13.6

11.8

3.0

2.6

22.2

22.3

1.3

1.1

Radico Khaitan

Buy

106

125

1,408

1,659

1,802

13.0

13.2

6.3

7.4

16.7

14.3

1.4

1.3

8.6

9.3

1.3

1.2

Garware Wall Ropes

Neutral

510

1,116

873

938

12.9

13.1

30.9

34.9

16.5

14.6

2.6

2.2

15.7

15.2

1.2

1.1

Wonderla Holidays

Neutral

399

2,255

287

355

38.0

40.0

11.3

14.2

35.3

28.1

5.1

4.4

21.4

23.9

7.5

6.1

Linc Pen & Plastics

Neutral

279

413

382

420

9.3

9.5

13.5

15.7

20.7

17.8

3.6

3.1

17.1

17.3

1.1

1.0

The Byke Hospitality

Neutral

158

635

287

384

20.5

7.6

10.7

20.9

14.8

4.4

3.5

20.7

23.5

2.2

1.7

Interglobe Aviation

Neutral

870

31,333

21,122

26,005

14.5

27.6

110.7

132.1

7.9

6.6

47.0

33.6

168.5

201.1

1.5

1.1

Coffee Day Enterprises

Neutral

238

4,912

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

104

2,476

1,062

1,147

24.0

6.1

6.6

17.1

15.7

3.5

3.1

20.6

19.8

2.4

2.2

Navkar Corporation

Buy

200

265

2,848

408

612

42.9

42.3

6.8

11.5

29.5

17.4

2.0

1.8

6.9

10.5

7.9

5.3

UFO Moviez

Neutral

462

1,276

619

685

33.2

33.4

30.0

34.9

15.4

13.3

2.1

1.8

13.8

13.9

1.8

1.4

VRL Logistics

Neutral

290

2,649

1,902

2,119

16.7

16.6

14.6

16.8

19.9

17.3

4.4

3.8

21.9

22.2

1.5

1.3

Team Lease Serv.

Neutral

1,088

1,860

3,229

4,001

1.5

1.8

22.8

32.8

47.8

33.1

5.1

4.4

10.7

13.4

0.5

0.4

S H Kelkar & Co.

Neutral

308

4,457

1,036

1,160

15.1

15.0

6.1

7.2

50.5

42.9

5.4

4.9

10.7

11.5

4.2

3.7

Quick Heal

Neutral

225

1,576

408

495

27.3

27.0

7.7

8.8

29.1

25.6

2.7

9.3

10.6

3.0

2.5

Narayana Hrudaya

Neutral

320

6,540

1,873

2,166

11.5

11.7

2.6

4.0

121.0

80.7

7.4

6.7

6.1

8.3

3.6

3.1

Manpasand Bever.

Neutral

707

3,537

836

1,087

19.6

19.4

16.9

23.8

41.8

29.7

5.0

4.4

12.0

14.8

4.0

3.0

Parag Milk Foods

Neutral

330

2,773

1,919

2,231

9.3

9.6

9.5

12.9

34.9

25.5

5.4

4.5

15.5

17.5

1.6

1.4

Mirza International

Buy

113

1,109

1,024

1,148

18.0

6.9

8.0

13.4

11.5

2.3

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 15, 2016

www.angelbroking.com

Market Outlook

September 16, 2016

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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.