Market Outlook

November 18, 2016

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian market is expected to open on a flat note tracking the SGX Nifty.

BSE Sensex

(0.3)

(71)

26,228

Nifty

(0.4)

(32)

8,080

U.S. Markets rose on Thursday, putting the major indexes close to all-time highs, as

Mid Cap

(0.4)

(45)

11,999

investors parsed through economic data and Federal Reserve Chair Janet Yellen's

Small Cap

(0.6)

(68)

11,840

testimony.

Bankex

0.1

21,860

European markets were locked in a sideways trend throughout Thursday's session,

fluctuating between small gains and losses over the course of the day. The majority

Global Indices

Chg (%)

(Pts)

(Close)

of the markets ended the session in positive territory, thanks in part to the modest

gains on Wall Street.

Dow Jones

0.2

18,904

Nasdaq

0.7

5,334

Indian markets ended a volatile session lower on Thursday, as concerns that an

ongoing cash crunch could affect economic growth and worries over FII outflows on

FTSE

0.7

6,795

expectations of higher inflation and interest rates in the U.S. continued to rattle

Nikkei

0.0

17,863

markets.

Hang Seng

(0.1)

(18)

22,263

Shanghai Com

0.1

3,208

News Analysis

 Cadila Healthcare to hive off India formulations biz to arm

Advances / Declines

BSE

NSE

 Inox Wind bags 40 mw orders for Gujarat project

Detailed analysis on Pg2

Advances

881

538

Declines

1,755

1,089

Investor’s Ready Reckoner

Unchanged

156

Key Domestic & Global Indicators

Stock Watch: Latest investment recommendations on 150+ stocks

Volumes (` Cr)

Refer Pg5 onwards

BSE

2,660

Top Picks

NSE

18,262

CMP

Target

Upside

Company

Sector

Rating

(`)

(%)

Net Inflows (` Cr)

Net

Mtd

Ytd

Amara Raja BatteriesAuto & Auto Ancill.

Buy

930

1,167

25.5

HCL Tech

Buy

760

1,000

31.5

FII

(1,960)

(8,026)

36,989

Asian Granito

Capital Goods

Buy

200

351

75.5

MFs

(100)

4,001

26,053

Equitas Holdings

Financials

Buy

157

235

50.1

Navkar Corporation Others

Buy

180

265

47.2

Top Gainers

Price (`)

Chg (%)

More Top Picks on Pg3

Pcjeweller

355

8.6

Key Upcoming Events

Deltacorp

112

7.9

Consensus

Date

Region

Event Description

Reading

Expectations

Hindzinc

251

5.5

Nov 22 Euro Zone Euro-Zone Consumer Confidence

(8.0)

Jpinfratec

4.4

Nov 22 US

Existing home sales

5.5

Emamiltd

1,092

3.7

Nov 23 Germany PMI Services

54.2

Nov 23 Germany PMI Manufacturing

55.0

Top Losers

Price (`)

Chg (%)

Nov 23 US

New home sales

593.0

585.0

More Events on Pg4

Sci

(8.0)

Voltas

303

(7.8)

Den

(5.1)

Centralbk

(4.9)

Jklakshmi

361

(4.9)

As on November 17, 2016

www.angelbroking.com

Market Outlook

November 18, 2016

News Analysis

Cadila Healthcare to hive off India formulations biz to arm

Drug firm Cadila Healthcare announced that its board has approved the scheme

to hive off its India human formulations undertaking to the company's subsidiary

Zydus Healthcare on a slump sale basis. The sale is for a lump sum cash

consideration of

`69.3cr. The rational of the scheme is that India human

formulations business of the Group is being consolidated into Zydus Healthcare,

which would bring more focused and concentrated efforts to growth the respective

operations of both the companies.

There will be no change in the shareholding pattern as business is transferred to a

wholly owned subsidiary for cash consideration of `69.3cr

Inox Wind bags 40 mw orders for Gujarat project

Inox Wind has bagged a repeat order from Roha Dyechem Private for supply of

wind mills totaling 40 mw for a project in Gujarat. The order is a part of the 350

mw of orders announced by Inox Wind on 3rd October 2016. The project is will

be commissioned by March 2017.

Roha Dyechem, a manufacturers of natural and synthetic colours, has diversified

into renewable energy and has invested in 52.5 mw of solar energy capacity and

13.5 mw of wind energy capacity. It aims to scale up its renewable energy

portfolio to 500 mw.

Economic and Political News

 Govt approves `6,068cr highway projects in 8 states

 MP seeks `1,200cr World Bank loan for ravine reclamation

 Over `3,900cr collected as Swachh Bharat Cess in last fiscal

Corporate News

 Sanofi India inks pact with NIPER Kolkata

 Lupin gets USFDA nod for generic pain relieving drug

 CESC extends power distribution operations to Bharatpur

www.angelbroking.com

Market Outlook

November 18, 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

15,890

930

1,167

25.5

products leading to market share gains in both the

automotive OEM and replacement segments.

The stock is trading at attractive valuations and is factoring all

HCL Tech

1,07,246

760

1,000

31.5

the bad news.

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

Infosys

2,13,513

930

1,249

34.3

to be a US$20bn in FY2020.

Source: Company, Angel Research

Mid Cap

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

We expect the company would report strong profitability

Asian Granito

602

200

351

75.5

owing to better product mix, higher B2C sales and

amalgamation synergy.

Among the top 4 players in the consumer durables segment.

Bajaj Electricals

2,231

221

306

38.7

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

Strong order book lends earnings visibility.

Favourable outlook for the AC industry to augur well for

Cooling products business which is out pacing the market

Blue Star

4,371

458

634

38.3

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

7,193

230

350

52.3

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

5,250

157

235

50.1

adequate CAR. ROE & ROA likely to remain decent as risk of

dilution remains low. Attractive valuations considering growth.

Economic recovery to have favourable impact on advertising

& circulation revenue growth. Further, the acquisition of a

Jagran Prakashan

5,706

175

225

28.9

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

revenue growth.

Speedier execution and speedier sales, strong revenue visibilty

Mahindra Lifespace

1,510

368

522

41.8

in short-to-long run, attractive valuations

We expect the company to report strong growth on back of

healthy growth in domestic branded sales (owing to

Mirza International

889

107

44.8

aggressive ad spend and addition in the number of EBOs &

multi-brand outlets [MBOs]) and healthy export revenues.

Massive capacity expansion along with rail advantage at ICD

Navkar Corporation

2,568

180

265

47.2

as well CFS augurs well for the company.

Strong brands and distribution network would boost growth

Siyaram Silk Mills

1,136

1,212

1,714

41.4

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

1,871

314

385

22.8

and anticipated growth in ad spends by corporates to benefit

the stock.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

November 18, 2016

Key Upcoming Events

Result Calendar

Date

Company

November 18, 2016

NHPC

November 19, 2016

India Cements, Siyaram Silk Mills

November 21, 2016

Nalco

November 23, 2016

Siemens

Source: Bloomberg, Angel Research

Global economic events release calendar

Bloomberg Data

Date

Time

Country

Event Description

Unit

Period

Last Reported

Estimated

Nov 22, 2016

8:30 PM

Euro Zone Euro-Zone Consumer Confidence

Value

Nov A

(8.00)

8:30 PM

Existing home sales

Million

Oct

5.47

5.45

Nov 23, 2016

2:00 PM

Germany PMI Services

Value

Nov P

54.20

2:00 PM

Germany PMI Manufacturing

Value

Nov P

55.00

8:30 PM

New home sales

Thousands

Oct

593.00

585.00

Nov 24, 2016

12:30 PM Germany GDP nsa (YoY)

% Change

3Q F

1.50

Nov 25, 2016

3:00 PM

GDP (YoY)

% Change

3Q P

2.30

Nov 29, 2016

7:00 PM

GDP Qoq (Annualised)

% Change

3Q S

2.90

8:30 PM

Consumer Confidence

S.A./ 1985=100

Nov

98.60

Nov 30, 2016

3:00 PM

PMI Manufacturing

Value

Nov

54.30

Dec 01, 2016

2:25 PM

Germany Unemployment change (000's)

Thousands

Nov

(13.00)

6:30 AM

China

PMI Manufacturing

Value

Nov

51.20

Dec 02, 2016

7:00 PM

Change in Nonfarm payrolls

Thousands

Nov

161.00

7:00 PM

Unnemployment rate

Nov

4.90

Dec 06, 2016

3:30 PM

Euro Zone Euro-Zone GDP s.a. (QoQ)

% Change

3Q F

0.30

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

November 18, 2016

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

9.0

3.0

8.3

2.2

7.9

1.9

7.8

8.0

7.5

7.6

2.0

1.3

7.2

7.1

0.7

6.6

6.7

1.0

0.3

7.0

6.4

5.8

6.0

(1.0)

5.0

(0.7)

(0.9)

(2.0)

(1.3)

(1.6)

4.0

(3.0)

(2.5)

3.0

(4.0)

(3.4)

Source: CSO, Angel Research

Source: MOSPI, Angel Research

Exhibit 3: Monthly CPI inflation trends

Exhibit 4: Manufacturing and services PMI

56.0

Mfg. PMI

Services PMI

(%)

55.0

7.0

6.1

54.0

5.6

5.7

5.8

6.0

5.4

5.5

5.0

5.3

5.1

53.0

4.8

5.0

4.3

52.0

4.0

51.0

50.0

3.0

49.0

2.0

48.0

1.0

47.0

46.0

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

Source: MOSPI, Angel Research

Exhibit 5: Exports and imports growth trends

Exhibit 6: Key policy rates

(%)

Exports yoy growth

Imports yoy growth

(%)

Repo rate

Reverse Repo rate

CRR

10.0

7.00

5.0

6.50

0.0

6.00

(5.0)

5.50

(10.0)

5.00

(15.0)

4.50

(20.0)

4.00

(25.0)

(30.0)

3.50

(35.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Market Outlook

November 18, 2016

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

59,770

(1.4)

3.0

29.5

Russia

Micex

2,043

4.0

3.3

13.9

India

Nifty

8,080

(5.2)

(6.0)

2.1

China

Shanghai Composite

3,208

4.0

6.3

(12.0)

South Africa

Top 40

44,171

(1.2)

(4.1)

(5.9)

Mexico

Mexbol

44,920

(5.9)

(7.1)

0.6

Indonesia

LQ45

871

(7.0)

(7.6)

13.4

Malaysia

KLCI

1,627

(2.4)

(3.8)

(2.3)

Thailand

SET 50

918

(2.3)

(7.1)

0.4

USA

Dow Jones

18,904

4.3

1.6

6.4

FTSE

6,795

(2.9)

(1.1)

7.3

Japan

Nikkei

17,863

5.7

5.9

(9.1)

Germany

DAX

10,686

0.0

0.3

(4.4)

France

CAC

4,528

(0.2)

2.3

(9.0)

Source: Bloomberg, Angel Research

www.angelbroking.com

Stock Watch

November 18, 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

Accumulate

191

209

3,705

1,937

2,164

13.3

14.3

9.0

11.0

21.2

17.3

3.7

3.2

18.4

19.8

2.0

1.7

United Phosphorus

Accumulate

616

684

31,231

15,176

17,604

18.5

37.4

44.6

16.5

13.8

3.2

2.7

21.4

21.2

2.2

1.8

Auto & Auto Ancillary

Ashok Leyland

Buy

111

22,468

22,407

26,022

10.6

5.2

6.4

15.1

12.3

3.4

2.9

23.6

24.7

1.1

0.9

Bajaj Auto

Neutral

2,544

73,625

25,093

27,891

19.5

19.2

143.9

162.5

17.7

15.7

5.0

4.3

30.3

29.4

2.7

2.3

Bharat Forge

Neutral

899

20,933

7,726

8,713

20.5

21.2

35.3

42.7

25.5

21.1

4.7

4.3

18.9

20.1

2.8

2.4

Eicher Motors

Neutral

21,036

57,136

16,583

20,447

17.5

18.0

598.0

745.2

35.2

28.2

12.0

9.2

41.2

38.3

3.3

2.6

Gabriel India

Buy

101

130

1,449

1,544

1,715

9.0

9.3

5.4

6.3

18.7

16.0

3.5

3.1

18.9

19.5

0.9

0.8

Hero Motocorp

Buy

2,878

3,541

57,473

30,958

34,139

15.7

193.6

208.3

14.9

13.8

5.8

4.8

34.2

30.5

1.7

1.5

Jamna Auto Industries Neutral

184

1,473

1,486

1,620

9.8

9.9

15.0

17.2

12.3

10.7

2.7

2.3

21.8

21.3

1.1

1.0

L G Balakrishnan & Bros Neutral

581

912

1,302

1,432

11.6

11.9

43.7

53.0

13.3

11.0

1.9

1.7

13.8

14.2

0.8

0.7

Mahindra and Mahindra Neutral

1,220

75,752

46,534

53,077

11.6

11.7

67.3

78.1

18.1

15.6

2.9

2.6

15.4

15.8

1.6

1.4

Maruti

Buy

4,933

6,006

149,013

68,057

82,958

15.8

15.5

212.1

261.2

23.3

18.9

4.6

3.8

19.8

20.3

1.9

1.5

Minda Industries

Neutral

297

2,360

2,728

3,042

9.0

9.1

68.2

86.2

4.4

3.5

1.0

0.8

23.8

24.3

0.9

0.8

Motherson Sumi

Neutral

296

41,575

45,896

53,687

7.8

8.3

13.0

16.1

22.7

18.4

7.3

5.8

34.7

35.4

1.0

0.8

Rane Brake Lining

Neutral

834

660

511

562

11.3

11.5

28.1

30.9

29.7

27.0

4.5

4.1

15.3

15.0

1.4

1.3

Setco Automotive

Neutral

503

741

837

13.0

15.2

17.0

2.5

2.2

0.4

15.8

16.3

1.1

1.0

Tata Motors

Neutral

473

136,449

300,209

338,549

8.9

8.4

42.7

54.3

11.1

8.7

1.8

1.5

15.6

17.2

0.6

0.5

TVS Motor

Neutral

362

17,203

13,390

15,948

6.9

7.1

12.8

16.5

28.4

21.9

7.1

5.6

26.3

27.2

1.3

1.1

Amara Raja Batteries

Buy

930

1,167

15,890

5,504

6,605

18.4

19.8

33.4

40.9

27.9

22.7

6.1

5.0

22.1

22.0

2.9

2.4

Exide Industries

Neutral

178

15,096

7,439

8,307

15.0

8.1

9.3

21.9

19.1

3.1

2.7

14.3

16.7

1.6

1.5

Apollo Tyres

Buy

186

235

9,453

12,877

14,504

14.3

13.9

21.4

23.0

8.7

8.1

1.4

1.2

16.4

15.2

0.9

0.8

Ceat

Buy

1,225

1,450

4,954

7,524

8,624

13.0

12.7

131.1

144.3

9.3

8.5

1.7

1.5

19.8

18.6

0.7

0.6

JK Tyres

Neutral

117

2,649

7,455

8,056

15.0

21.8

24.5

5.4

4.8

1.1

0.9

22.8

21.3

0.5

0.4

Swaraj Engines

Neutral

1,321

1,641

660

810

15.2

16.4

54.5

72.8

24.2

18.2

7.6

6.9

31.5

39.2

2.3

1.9

Subros

Neutral

147

881

1,488

1,681

11.7

11.9

6.4

7.2

23.0

20.5

2.4

2.2

10.8

11.4

0.8

0.7

Indag Rubber

Neutral

161

422

286

326

19.8

16.8

11.7

13.3

13.8

12.1

2.3

2.2

17.8

17.1

1.1

1.0

Capital Goods

ACE

Neutral

423

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

Neutral

823

3,429

3,451

4,055

6.3

9.2

31.4

57.9

26.2

14.2

1.6

1.4

6.3

10.9

1.1

0.9

Bharat Electronics

Accumulate

1,315

1,414

29,367

8,137

9,169

16.8

17.2

58.7

62.5

22.4

21.0

3.5

3.1

44.6

46.3

2.6

2.3

www.angelbroking.com

Stock Watch

November 18, 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

Buy

303

407

10,014

6,511

7,514

7.9

8.7

12.9

16.3

23.5

18.6

4.2

3.7

16.7

18.5

1.3

1.1

BGR Energy

Neutral

105

759

16,567

33,848

6.0

5.6

7.8

5.9

13.5

17.8

0.8

0.7

4.7

4.2

0.1

BHEL

Neutral

134

32,700

28,797

34,742

2.8

2.3

6.9

58.1

19.4

1.0

1.3

4.8

0.8

0.5

Blue Star

Buy

458

634

4,371

4,283

5,077

5.9

7.3

14.9

22.1

30.8

20.7

6.0

5.0

20.4

26.4

1.1

0.9

Crompton Greaves

Neutral

4,541

5,777

6,120

5.9

7.0

3.3

4.5

22.0

16.1

1.0

0.9

4.4

5.9

0.7

0.6

Greaves Cotton

Neutral

124

3,022

1,755

1,881

16.8

16.9

7.8

8.5

15.9

14.6

3.2

3.0

20.6

20.9

1.4

1.3

Inox Wind

Neutral

183

4,066

5,605

6,267

15.7

16.4

24.8

30.0

7.4

6.1

2.1

1.5

25.9

24.4

0.8

0.6

KEC International

Neutral

137

3,534

9,294

10,186

7.9

8.1

9.9

11.9

13.9

11.6

2.0

1.8

15.6

16.3

0.6

Thermax

Neutral

843

10,043

5,421

5,940

7.3

25.7

30.2

32.8

27.9

4.0

3.6

12.2

13.1

1.7

1.6

VATech Wabag

Buy

487

681

2,657

3,136

3,845

8.9

9.1

26.0

35.9

18.8

13.6

2.3

2.0

13.4

15.9

0.8

0.6

Cement

ACC

Neutral

1,303

24,470

11,225

13,172

13.2

16.9

44.5

75.5

29.3

17.3

2.8

2.6

11.2

14.2

2.2

1.9

Ambuja Cements

Neutral

194

38,561

9,350

10,979

18.2

22.5

5.8

9.5

33.5

20.4

2.8

2.5

10.2

12.5

4.1

3.5

India Cements

Neutral

112

3,448

4,364

4,997

18.5

19.2

7.9

11.3

14.2

9.9

1.0

8.0

8.5

1.6

1.4

JK Cement

Neutral

745

5,209

4,398

5,173

15.5

17.5

31.2

55.5

23.9

13.4

2.9

2.5

12.0

15.5

1.7

1.4

J K Lakshmi Cement

Buy

361

565

4,248

2,913

3,412

14.5

19.5

7.5

22.5

48.1

16.0

3.0

2.5

12.5

18.0

2.0

1.7

Orient Cement

Buy

134

215

2,735

2,114

2,558

18.5

20.5

8.1

11.3

16.5

11.8

2.4

2.1

9.0

14.0

1.9

1.5

UltraTech Cement

Neutral

3,338

91,595

25,768

30,385

21.0

23.5

111.0

160.0

30.1

20.9

3.8

3.4

13.5

15.8

3.7

3.0

Construction

ITNL

Neutral

2,962

8,946

10,017

31.0

31.6

8.1

9.1

11.1

9.9

0.4

4.2

5.0

3.7

3.4

KNR Constructions

Accumulate

745

802

2,095

1,385

1,673

14.7

14.0

41.2

48.5

18.1

15.4

3.4

2.9

14.9

15.2

1.6

1.3

Larsen & Toubro

Buy

1,371

1,700

127,774

67,665

77,249

10.7

11.5

57.3

71.2

23.9

19.3

2.2

2.1

12.6

14.3

2.1

1.8

Gujarat Pipavav Port

Neutral

133

6,425

705

788

52.2

51.7

5.0

5.6

26.6

23.7

2.6

2.4

11.2

8.8

7.4

Nagarjuna Const.

Neutral

4,270

8,842

9,775

9.1

8.8

5.3

6.4

14.5

12.0

1.2

1.1

8.2

9.1

0.6

PNC Infratech

Buy

114

143

2,922

2,350

2,904

13.1

13.2

9.0

8.8

12.7

12.9

0.5

0.4

15.9

13.9

1.4

1.1

Simplex Infra

Neutral

321

1,588

6,829

7,954

10.5

31.4

37.4

10.2

8.6

1.1

1.0

9.9

13.4

0.7

0.6

Power Mech Projects

Neutral

443

652

1,801

2,219

12.7

14.6

72.1

113.9

6.1

3.9

1.1

1.0

16.8

11.9

0.4

0.3

Sadbhav Engineering

Accumulate

280

298

4,803

3,598

4,140

10.3

10.6

9.0

11.9

31.1

23.5

3.3

2.9

9.9

11.9

1.6

1.4

NBCC

Neutral

217

13,002

7,428

9,549

7.9

8.6

8.2

11.0

26.4

19.7

1.3

1.0

28.2

28.7

1.5

1.1

MEP Infra

Neutral

617

1,877

1,943

30.6

29.8

3.0

4.2

12.7

9.0

6.1

4.1

0.6

1.7

1.5

SIPL

Neutral

3,147

1,036

1,252

65.5

66.2

(8.4)

(5.6)

3.4

3.8

(22.8)

(15.9)

11.3

9.4

www.angelbroking.com

Stock Watch

November 18, 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

266

8,973

1,725

1,935

16.0

19.1

11.4

13.9

23.4

19.2

3.2

3.1

13.4

15.3

4.1

3.7

Financials

Axis Bank

Buy

474

630

113,228

46,932

53,575

3.5

3.4

32.4

44.6

14.7

10.6

1.9

1.6

13.6

16.5

Bank of Baroda

Neutral

175

40,254

19,980

23,178

1.8

11.5

17.3

15.2

10.1

1.7

1.4

8.3

10.1

Canara Bank

Neutral

324

17,577

15,225

16,836

1.8

14.5

28.0

22.3

11.6

1.5

1.2

5.8

8.5

Dewan Housing Finance Buy

230

350

7,193

2,225

2,688

2.9

29.7

34.6

7.7

6.6

1.3

1.1

16.1

16.8

Equitas Holdings

Buy

157

235

5,250

939

1,281

11.7

11.5

5.8

8.2

27.0

19.1

2.3

2.1

10.9

11.5

Federal Bank

Neutral

12,569

9,353

10,623

2.9

4.4

5.8

16.6

12.6

1.6

1.4

9.5

11.0

HDFC

Neutral

1,250

197,605

11,475

13,450

3.4

45.3

52.5

27.6

23.8

5.3

4.7

20.2

20.5

HDFC Bank

Accumulate

1,230

1,350

311,328

46,097

55,433

4.5

58.4

68.0

21.1

18.1

3.7

3.1

18.8

18.6

ICICI Bank

Buy

268

315

155,779

42,800

44,686

3.1

3.3

18.0

21.9

14.9

12.2

2.0

1.9

11.1

12.3

LIC Housing Finance

Buy

506

630

25,546

3,712

4,293

2.6

2.5

39.0

46.0

13.0

11.0

2.4

2.1

19.9

20.1

Punjab Natl.Bank

Neutral

148

31,419

23,532

23,595

2.3

2.4

6.8

12.6

21.7

11.7

3.4

2.4

3.3

6.5

RBL Bank

Neutral

342

12,636

1,783

2,309

2.6

12.7

16.4

26.9

20.8

2.9

2.6

12.8

13.3

South Ind.Bank

Neutral

3,025

6,435

7,578

2.5

2.7

3.1

8.3

7.2

1.1

0.9

10.1

11.2

St Bk of India

Neutral

278

215,534

88,650

98,335

2.6

13.5

18.8

20.6

14.8

2.0

1.7

7.0

8.5

Union Bank

Neutral

150

10,277

13,450

14,925

2.3

25.5

34.5

5.9

4.3

0.9

0.7

7.5

10.2

Yes Bank

Neutral

1,175

49,448

8,978

11,281

3.3

3.4

74.0

90.0

15.9

13.1

3.0

2.6

17.0

17.2

FMCG

Asian Paints

Neutral

918

88,078

17,128

18,978

16.8

16.4

19.1

20.7

48.1

44.4

16.7

15.8

34.8

35.5

5.1

4.6

Britannia

Buy

2,935

3,626

35,210

9,594

11,011

14.6

14.9

80.3

94.0

36.6

31.2

15.0

11.6

41.2

3.5

3.0

Colgate

Accumulate

927

995

25,202

4,605

5,149

23.4

23.8

26.9

38.9

34.5

21.6

16.9

64.8

66.8

5.4

4.8

Dabur India

Accumulate

277

304

48,658

8,315

9,405

19.8

20.7

8.1

9.2

34.2

30.1

9.5

7.9

31.6

31.0

5.5

4.8

GlaxoSmith Con*

Neutral

4,977

20,931

4,350

4,823

21.2

21.4

179.2

196.5

27.8

25.3

7.4

6.3

27.1

26.8

4.2

3.7

Godrej Consumer

Neutral

1,402

47,729

10,235

11,428

18.4

18.6

41.1

44.2

34.1

31.7

7.6

6.4

24.9

24.8

4.7

4.2

HUL

Neutral

812

175,769

35,252

38,495

17.8

20.7

22.4

39.3

36.3

37.6

32.2

95.6

88.9

4.8

4.4

ITC

Buy

232

284

280,465

40,059

44,439

38.3

39.2

9.0

10.1

25.9

22.9

7.2

6.3

27.8

27.5

6.5

5.9

Marico

Buy

249

300

32,125

6,430

7,349

18.8

19.5

6.4

7.7

38.9

32.3

11.8

9.9

33.2

32.5

4.8

4.2

Nestle*

Neutral

5,958

57,445

10,073

11,807

20.7

21.5

124.8

154.2

47.7

38.6

19.6

17.6

34.8

36.7

5.5

4.7

Tata Global

Neutral

119

7,485

8,675

9,088

9.8

7.4

8.2

16.0

14.5

1.8

1.7

7.9

8.1

0.8

0.7

Procter & Gamble

Accumulate

6,500

7,369

21,100

2,939

3,342

23.2

23.0

146.2

163.7

44.5

39.7

99.5

95.5

25.3

23.5

6.7

5.8

Hygiene

www.angelbroking.com

Stock Watch

November 18, 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

760

1,000

107,246

49,242

57,168

20.5

55.7

64.1

13.7

11.9

2.8

2.1

20.3

17.9

2.0

1.6

Infosys

Buy

930

1,249

213,513

68,350

77,326

27.0

62.5

69.4

14.9

13.4

3.2

2.9

21.3

21.6

2.6

2.2

TCS

Buy

2,142

2,620

422,095

119,025

133,308

27.6

131.2

145.5

16.3

14.7

5.3

4.9

32.4

33.1

3.3

2.9

Tech Mahindra

Buy

441

600

42,827

29,673

32,937

15.5

17.0

32.8

39.9

13.5

11.1

2.6

2.3

19.6

20.7

1.2

1.0

Wipro

Buy

440

590

106,879

55,440

60,430

18.1

35.9

39.9

12.3

11.0

2.2

2.0

19.0

19.3

1.6

1.5

Media

D B Corp

Neutral

376

6,905

2,297

2,590

27.4

28.2

21.0

23.4

17.9

16.1

4.2

3.6

23.7

23.1

2.8

2.4

HT Media

Neutral

1,699

2,693

2,991

12.6

12.9

7.9

9.0

9.2

8.1

0.8

0.7

7.8

8.3

0.2

0.1

Jagran Prakashan

Buy

175

225

5,706

2,355

2,635

28.0

10.8

12.5

16.2

14.0

3.5

3.0

21.7

2.4

2.1

Sun TV Network

Neutral

479

18,857

2,850

3,265

70.1

71.0

26.2

30.4

18.3

15.7

4.7

4.1

24.3

25.6

6.2

5.3

Hindustan Media

Neutral

270

1,985

1,016

1,138

24.3

25.2

27.3

30.1

9.9

9.0

1.9

1.7

16.2

15.8

1.3

1.1

Ventures

TV Today Network

Buy

314

385

1,871

637

743

27.5

18.4

21.4

17.1

14.7

3.0

2.5

17.4

17.2

2.5

2.1

Metals & Mining

Coal India

Neutral

306

193,344

84,638

94,297

21.4

22.3

24.5

27.1

12.5

11.3

5.2

5.0

42.6

46.0

1.8

1.6

Hind. Zinc

Neutral

251

105,950

14,252

18,465

55.9

48.3

15.8

21.5

15.9

11.7

2.6

2.3

17.0

20.7

7.4

5.7

Hindalco

Neutral

168

34,774

107,899

112,095

7.4

8.2

9.2

13.0

18.3

13.0

0.9

0.8

4.8

6.6

0.8

JSW Steel

Neutral

1,657

40,049

53,201

58,779

16.1

16.2

130.6

153.7

12.7

10.8

1.7

1.5

14.0

14.4

1.5

1.3

NMDC

Neutral

117

36,986

6,643

7,284

44.4

47.7

7.1

7.7

16.5

15.2

1.4

8.8

9.2

3.3

3.0

SAIL

Neutral

20,630

47,528

53,738

(0.7)

2.1

(1.9)

2.6

19.2

0.5

(1.6)

3.9

1.3

1.2

Vedanta

Neutral

214

63,415

71,744

81,944

19.2

21.7

13.4

20.1

16.0

10.6

1.4

1.2

8.4

11.3

1.3

1.0

Tata Steel

Neutral

393

38,164

121,374

121,856

7.2

8.4

18.6

34.3

21.1

11.5

1.3

1.2

6.1

10.1

1.0

0.9

Oil & Gas

Cairn India

Neutral

237

44,397

9,127

10,632

4.3

20.6

8.8

11.7

26.9

20.2

0.9

0.8

3.3

4.2

6.3

5.3

GAIL

Neutral

435

55,179

56,220

65,198

9.3

10.1

27.1

33.3

16.1

13.1

1.5

1.4

9.3

10.7

1.2

1.0

ONGC

Neutral

273

233,565

137,222

152,563

15.0

21.8

19.5

24.1

14.0

11.3

1.2

1.1

8.5

10.1

2.0

1.8

Indian Oil Corp

Neutral

293

142,497

373,359

428,656

5.9

5.5

54.0

59.3

5.4

5.0

0.8

16.0

15.6

0.5

Reliance Industries

Neutral

981

318,181

301,963

358,039

12.1

12.6

87.7

101.7

11.2

9.7

1.2

1.0

10.7

11.3

1.5

1.3

Pharmaceuticals

Alembic Pharma

Neutral

610

11,491

3,483

4,083

20.2

21.4

24.3

30.4

25.1

20.1

5.7

4.6

25.5

25.3

3.2

2.7

Aurobindo Pharma

Buy

712

877

41,685

15,720

18,078

23.7

41.4

47.3

17.2

15.1

4.5

3.5

29.6

26.1

2.9

2.5

Aventis*

Neutral

4,184

9,635

2,277

2,597

17.3

18.3

149.4

172.0

28.0

24.3

4.6

3.7

25.1

28.8

3.9

3.2

Cadila Healthcare

Accumulate

370

400

37,832

10,429

12,318

22.6

22.0

16.9

19.2

21.9

19.3

5.6

4.5

28.5

25.7

3.6

3.0

Cipla

Neutral

545

43,770

15,378

18,089

17.4

18.4

21.6

27.2

25.2

20.0

3.3

2.8

13.7

15.2

3.1

2.5

www.angelbroking.com

Stock Watch

November 18, 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

3,207

53,138

16,043

18,119

20.8

22.4

112.4

142.9

28.5

22.4

3.8

3.3

14.1

15.9

3.3

2.9

Dishman Pharma

Neutral

231

3,722

1,718

1,890

22.7

22.8

9.5

11.3

24.3

20.4

2.4

2.1

10.1

10.9

2.6

2.3

GSK Pharma*

Neutral

2,687

22,762

3,000

3,312

15.4

20.6

46.5

60.8

57.8

44.2

13.9

13.8

26.3

30.6

7.3

6.7

Indoco Remedies

Sell

285

240

2,625

1,112

1,289

16.2

18.2

11.6

16.0

24.6

17.8

3.9

3.3

17.0

20.1

2.5

2.1

Ipca labs

Buy

533

613

6,724

3,303

3,799

15.3

17.3

19.7

30.8

27.1

2.7

2.5

9.1

9.4

2.2

1.9

Lupin

Buy

1,413

1,809

63,704

15,912

18,644

26.4

26.7

58.1

69.3

24.3

20.4

4.7

3.9

21.4

20.9

4.1

3.4

Sun Pharma

Buy

671

847

161,417

31,129

35,258

32.0

32.9

30.2

35.3

22.2

19.0

3.6

3.0

20.0

20.1

4.8

4.0

Power

Tata Power

Neutral

18,973

36,916

39,557

17.4

27.1

5.1

6.3

13.8

11.1

1.2

1.1

9.0

10.3

1.5

1.4

NTPC

Neutral

152

125,042

86,605

95,545

17.5

20.8

11.8

13.4

12.9

11.3

1.3

1.2

10.5

11.1

2.8

Power Grid

Neutral

193

100,944

25,763

29,762

74.3

73.1

14.8

17.3

13.0

11.2

2.0

1.8

16.9

17.5

8.2

7.8

Real Estate

Prestige Estate

Buy

161

210

6,021

4,707

5,105

25.2

26.0

10.3

13.0

15.6

12.4

1.3

1.2

10.3

10.2

2.5

2.2

MLIFE

Buy

368

522

1,510

1,152

1,300

22.7

24.6

29.9

35.8

12.3

10.3

0.9

7.6

8.6

2.0

1.7

Telecom

Bharti Airtel

Neutral

296

118,463

105,086

114,808

34.5

34.7

12.2

16.4

24.3

18.1

1.6

1.5

6.8

8.4

2.0

1.8

Idea Cellular

Neutral

25,206

40,133

43,731

37.2

37.1

6.4

6.5

10.9

10.8

0.9

0.8

8.2

7.6

1.6

1.4

zOthers

Abbott India

Neutral

4,516

9,596

3,153

3,583

14.1

14.4

152.2

182.7

29.7

24.7

145.7

124.4

25.6

26.1

2.8

2.4

Asian Granito

Buy

200

351

602

1,071

1,182

12.1

12.4

12.7

16.0

15.7

12.5

1.5

1.3

9.5

10.7

0.9

0.7

Bajaj Electricals

Buy

221

306

2,231

5,099

5,805

5.6

5.9

11.4

14.6

19.4

15.1

2.6

2.3

13.4

15.1

0.4

Banco Products (India)

Neutral

173

1,238

1,353

1,471

12.3

12.4

14.5

16.3

11.9

10.6

16.5

14.9

14.5

14.6

0.9

91.3

Coffee Day Enterprises

Neutral

209

4,299

2,964

3,260

20.5

21.2

4.7

8.0

26.1

2.4

2.2

5.5

8.5

1.9

1.6

Ltd

Competent Automobiles Neutral

158

1,137

1,256

3.1

2.7

28.0

23.6

5.6

6.7

30.4

27.5

14.3

11.5

0.1

Elecon Engineering

Neutral

532

1,482

1,660

13.7

14.5

3.9

5.8

12.5

8.4

2.9

2.7

7.8

10.9

0.7

0.6

Finolex Cables

Neutral

392

5,998

2,883

3,115

12.0

12.1

14.2

18.6

27.6

21.1

14.7

12.8

15.8

14.6

1.8

1.6

Garware Wall Ropes

Neutral

576

1,261

873

938

14.3

35.2

37.5

16.4

15.4

2.9

2.4

17.5

15.9

1.4

1.2

Goodyear India*

Neutral

707

1,631

1,598

1,704

10.4

10.2

49.4

52.6

14.3

13.4

66.1

58.0

18.2

17.0

0.7

97.9

Hitachi

Neutral

1,253

3,407

2,081

2,433

8.8

8.9

33.4

39.9

37.5

31.4

30.3

25.2

22.1

21.4

1.6

1.4

HSIL

Neutral

286

2,065

2,384

2,515

15.8

16.3

15.3

19.4

18.7

14.7

18.6

16.0

7.8

9.3

1.0

0.9

Interglobe Aviation

Neutral

860

30,998

21,122

26,005

14.5

27.6

110.7

132.1

7.8

6.5

46.5

33.2

168.5

201.1

1.4

1.1

Jyothy Laboratories

Neutral

347

6,305

1,440

2,052

11.5

13.0

8.5

10.0

40.9

34.7

9.9

9.2

18.6

19.3

4.7

3.2

Kirloskar Engines India

Neutral

338

4,889

2,554

2,800

9.9

10.0

10.5

12.1

32.2

27.9

13.5

12.7

10.7

11.7

1.6

1.4

Ltd

www.angelbroking.com

Stock Watch

November 18, 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

Linc Pen & Plastics

Neutral

237

351

382

420

9.3

9.5

13.5

15.7

17.6

15.1

3.0

2.6

17.1

17.3

1.0

0.9

M M Forgings

Neutral

434

523

546

608

20.4

20.7

41.3

48.7

10.5

8.9

59.4

52.6

16.6

17.0

0.8

0.7

Manpasand Bever.

Neutral

684

3,911

836

1,087

19.6

19.4

16.9

23.8

40.5

28.7

4.9

4.2

12.0

14.8

4.4

3.3

Mirza International

Buy

107

889

987

1,106

18.0

6.5

7.6

11.3

9.7

1.8

1.6

15.9

15.7

1.1

1.0

MT Educare

Neutral

117

465

366

417

17.7

18.2

9.4

10.8

12.5

10.8

2.8

2.4

22.2

22.3

1.2

1.0

Narayana Hrudaya

Neutral

322

6,582

1,873

2,166

11.5

11.7

2.6

4.0

121.8

81.2

7.5

6.8

6.1

8.3

3.6

3.1

Navkar Corporation

Buy

180

265

2,568

408

612

42.9

42.3

6.8

11.5

26.6

15.7

1.8

1.7

6.9

10.5

7.2

4.8

Navneet Education

Neutral

108

2,568

1,062

1,147

24.0

6.1

6.6

17.7

16.3

3.6

3.2

20.6

19.8

2.5

2.3

Nilkamal

Neutral

1,311

1,956

1,995

2,165

10.7

10.4

69.8

80.6

18.8

16.3

74.9

65.1

16.6

16.5

1.0

0.9

Page Industries

Neutral

13,111

14,624

2,450

3,124

20.1

17.6

299.0

310.0

43.9

42.3

292.0

222.9

47.1

87.5

6.0

4.7

Parag Milk Foods

Neutral

263

2,208

1,919

2,231

9.3

9.6

9.5

12.9

27.8

20.3

4.3

3.6

15.5

17.5

1.3

1.1

Quick Heal

Neutral

232

1,622

408

495

27.3

27.0

7.7

8.8

29.9

26.4

2.8

9.3

10.6

3.1

2.6

Radico Khaitan

Buy

115

147

1,535

1,667

1,824

13.0

13.2

6.7

8.2

17.4

14.1

1.6

1.4

9.0

10.2

1.3

1.2

Relaxo Footwears

Neutral

404

4,844

2,085

2,469

9.2

8.2

7.6

8.0

53.4

50.8

20.7

17.7

17.9

18.8

2.4

2.1

S H Kelkar & Co.

Neutral

289

4,177

1,036

1,160

15.1

15.0

6.1

7.2

47.3

40.2

5.1

4.6

10.7

11.5

3.9

3.4

Siyaram Silk Mills

Accumulate

1,212

1,714

1,136

1,799

2,040

11.6

11.7

104.9

122.4

11.6

9.9

1.9

1.6

16.4

0.8

0.7

Styrolution ABS India*

Neutral

570

1,003

1,440

1,537

9.2

9.0

40.6

42.6

14.1

13.4

35.9

32.6

12.3

11.6

0.7

0.6

Surya Roshni

Neutral

200

876

3,342

3,625

7.8

7.5

17.3

19.8

11.6

10.1

22.0

17.6

10.5

10.8

0.5

Team Lease Serv.

Neutral

877

1,499

3,229

4,001

1.5

1.8

22.8

32.8

38.5

26.7

4.1

3.6

10.7

13.4

0.4

0.3

The Byke Hospitality

Neutral

176

704

287

384

20.5

7.6

10.7

23.1

16.4

4.8

3.9

20.7

23.5

2.5

1.8

Transport Corporation of

Neutral

173

1,326

2,671

2,911

8.5

8.8

13.9

15.7

12.5

11.1

1.7

1.5

13.7

13.8

0.6

India

TVS Srichakra

Neutral

3,260

2,497

2,304

2,614

13.7

13.8

231.1

266.6

14.1

12.2

366.3

288.5

33.9

29.3

1.1

0.9

UFO Moviez

Neutral

438

1,210

619

685

33.2

33.4

30.0

34.9

14.6

12.6

2.0

1.8

13.8

13.9

1.7

1.3

Visaka Industries

Neutral

180

286

1,051

1,138

10.3

10.4

21.0

23.1

8.6

7.8

23.1

21.6

9.0

9.2

0.5

VRL Logistics

Neutral

260

2,373

1,902

2,119

16.7

16.6

14.6

16.8

17.9

15.5

3.9

3.4

21.9

22.2

1.4

1.2

Wonderla Holidays

Neutral

339

1,915

287

355

38.0

40.0

11.3

14.2

30.0

23.9

4.3

3.8

21.4

23.9

6.4

5.2

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on November 17, 2016

www.angelbroking.com

Market Outlook

November 18, 2016

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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