Market Outlook

August 19, 2016

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian markets are likely to open in negative note tracking SGX Nifty.

BSE Sensex

0.4

118

28,123

Nifty

0.6

8,673

US markets have moved modestly higher in morning trading on Thursday, adding to

the slim gains posted in the previous session. Buying interest has remained relatively

Mid Cap

0.4

12,968

subdued, however, limiting the upside for the markets.

Small Cap

1.0

123

12,404

Bankex

1.6

358

22,196

The European markets ended Thursday's session with modest gains, snapping a 4

session losing streak. The markets got off to a positive start, but were stuck in a

sideways trend throughout the session. Investors had a positive reaction to the

Global Indices

Chg (%)

(Pts)

(Close)

minutes from the most recent Federal Reserve meeting, which were released after

Dow Jones

0.1

18,598

the European close yesterday.

Nasdaq

0.2

5,240

Indian markets eked out modest gains on Thursday after the minutes from the

FTSE

0.1

6,869

Federal Reserve's July monetary policy meeting showed that officials were still split

Nikkei

(1.6)

(260)

16,486

over the timing of the next interest-rate rise despite a strong rebound in employment

Hang Seng

1.0

223

23,023

in June.

Shanghai Com

(0.2)

(5)

3,104

News Analysis & Result Review

 Result Review: India Cements

Advances / Declines

BSE

NSE

Detailed analysis on Pg2

Advances

1,683

1,077

Investor’s Ready Reckoner

Declines

1,023

521

Unchanged

177

Key Domestic & Global Indicators

Stock Watch: Latest investment recommendations on 150+ stocks

Volumes (` Cr)

Refer Pg5 onwards

BSE

3,127

Top Picks

NSE

19,449

CMP

Target

Upside

Company

Sector

Rating

(`)

(%)

Amara Raja

Auto/Auto Ancillary

Buy

920

1,076

17.0

Net Inflows (` Cr)

Net

Mtd

Ytd

HCL Tech

Buy

786

1,000

27.3

FII

781

7,259

38,141

HDFC Bank

Financials

Accumulate

1,251

1,350

7.9

MFs

(49)

(244)

8,545

Bharat Electronics

Capital Goods

Buy

1,226

1,414

15.3

Navkar Corporation Others

Buy

195

265

35.8

Top Gainers

Price (`)

Chg (%)

More Top Picks on Pg3

Jubilant

489

11.6

Key Upcoming Events

Jpinfratec

8.9

Consensus

Date

Region

Event Description

Reading

Expectations

Bharatfin

796

6.8

Aug 23

New Home sales

592.0

579.0

Gspl

153

6.6

Aug 23 Germany

PMI Services

54.4

Renuka

6.0

Aug 24 Germany

PMI Manufacturing

53.8

Aug 26

GDP QoQ (Annualised)

1.2

1.1

Top Losers

Price (`)

Chg (%)

Aug 26

UK GDP YoY

2.2

6.(

Centralbk

101

(4.7)

More Events on Pg4

Star

1,021

(3.6)

Coalindia

339

(2.6)

Il&Fstrans

(2.4)

Mfsl

507

(2.1)

As on August 18, 2016

www.angelbroking.com

Market Outlook

August 19, 2016

Result Review:

India Cements

India Cements Ltd on Thursday posted a 16.34% jump in standalone net profit to

`44cr in the quarter ended on June 30. The company's net profit during the same

quarter a year ago stood at `37.8cr. However, total income from operations

decreased from `1,225.7cr in the year-ago period to `1205.7cr in the first

quarter. Indian cenments said that authorities had issued a provisional attachment

order under the Prevention of Money Laundering Act 2002 attaching certain assets

of the company for aggregating value of `120.34cr. The company, based on the

legal opinion, has appealed against the said order to the Appellate Authority.

Economic and Political News

 Milk powder exports may start from next quarter

 India to soon allow banks to pledge corporate bonds to borrow from RBI

 Govt imposes anti-dumping duty on cold-rolled flat steel items

Corporate News

 HDFC Bank plans 200-seater BPO in Odisha

 Wipro picks up minority stake in Israeli firm for $1.5 mn

 Govt slaps $380 million additional penalty on RIL

Quarterly Bloomberg Brokers Consensus Estimate

Tata Power Co Ltd Consol - Aug 23, 2016

Particulars (` cr)

1QFY17E

1QFY16

y-o-y (%)

4QFY16

q-o-q (%)

Net sales

9,275

9,235

0.4

9,375

(1.1)

EBITDA

1,995

2,181

(8.5)

1,913

4.3

EBITDA margin (%)

21.5

23.6

20.4

Net profit

341

241

41.3

360

(5.3)

www.angelbroking.com

Market Outlook

August 19, 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

15,715

920

1,076

17.0

products leading to market share gains in both the automotive

OEM and replacement segments.

Uptick in defense capex by government, coupled with BELs

Bharat Electronics

29,423

1,226

1,414

15.3

strong market positioning, indicate good times ahead for BEL.

HCL Tech

1,10,822

786

1,000

27.3

Stock is trading at attractive valuations & factors all bad news.

Strong visibility for a robust 20% earnings trajectory, coupled

HDFC Bank

3,16,771

1,251

1,350

7.9

with high quality of earnings on account of high quality retail

business and strategic focus on highly rated corporates.

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

Infosys

2,35,276

1,024

1,370

33.7

be a US$20bn in FY2020.

Strong market positioning within the domestic AC markets to

Voltas

12,102

366

407

11.3

continue, EMP business set to revive

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

2,558

253

277

9.4

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

4,671

490

527

7.6

growth. EMPPAC division's profitability to improve once

operating environment turns around.

Strong loan growth backed by diversified loan portfolio and

Equitas Holdings

6,030

180

235

30.7

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

1,261

547

631

15.4

Goodyear India as it derives ~50% of its turnover from farm

tyre segment.

Commencement of new projects, downtrend in the interest rate

IL&FS Transport

2,179

40.4

cycle, to lead to stock re-rating

Economic recovery to have favourable impact on advertising &

Jagran Prakashan

6,050

185

205

10.8

circulation revenue growth. Further, the acquisition of a radio business

(Radio City) would also boost the company`s revenue growth.

Speedier execution and speedier sales, strong revenue visibility

Mahindra Lifespace

1,774

432

554

28.1

in short-to-long run, attractive valuations

Massive capacity expansion along with rail advantage at ICD as

Navkar Corporation

2,782

195

265

35.8

well CFS augurs well for the company

Earnings boost on back of stable material prices and favourable

Radico Khaitan

1,366

103

125

21.8

pricing environment. Valuation discount to peers provides

additional comfort

Strong brands and distribution network would boost growth

Siyaram Silk Mills

1,031

1,100

1,347

22.4

going ahead. Stock currently trades at an inexpensive valuation.

Market leadership in Hindi news genre and no. 2 viewership

TV Today Network

1,806

303

363

19.9

ranking in English news genre, exit from the radio business, and

anticipated growth in ad spends by corporates to benefit the stock.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

August 19, 2016

Key Upcoming Events

Result Calendar

Date

Company

August 20, 2016

TVS Srichakra

August 23, 2016

Tata Power Co.

August 26, 2016

Tata Motors

Source: Bloomberg, Angel Research

Global economic events release calendar

Bloomberg Data

Date

Time

Country Event Description

Unit

Period

Last Reported Estimated

Aug 23, 2016

2:30 PM Euro Zone

Euro-Zone CPI (YoY)

% Jul F

0.20

7:30 PM

New home sales

Thousands

Jul

592.00

577.00

11:30 AM Germany

GDP nsa (YoY)

% Change 2Q F

3.10

1:00 PM Germany

PMI Services

Value Aug P

54.40

Aug 24, 2016

1:00 PM Germany

PMI Manufacturing

Value Aug P

53.80

7:30 PM

Existing home sales

Million

Jul

5.57

5.55

Aug 26, 2016

6:00 PM

GDP Qoq (Annualised)

% Change 2Q S

1.20

1.10

2:00 PM

GDP (YoY)

% Change 2Q P

2.20

Aug 30, 2016

7:30 PM

Consumer ConfidenceS.A./ 1985=100 Aug

97.30

97.00

Aug 31, 2016

1:25 PM Germany Unemployment change (000's)

Thousands Aug

(7.00)

Sep 01, 2016

2:00 PM

PMI Manufacturing

Value Aug

48.20

6:30 AM

China

PMI Manufacturing

Value Aug

49.90

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

August 19, 2016

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

9.0

12.0

8.3

9.9

7.8

7.7

7.9

10.0

8.0

7.5

7.6

7.2

8.0

6.3

6.7

6.6

6.7

7.0

6.4

6.0

3.7

5.8

4.0

6.0

1.9

2.1

1.1

2.0

0.3

5.0

4.0

(2.0)

(0.9)

(1.3)

(1.6)

(4.0)

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

(%)

7.0

6.1

54.0

5.8

5.6

5.7

5.5

6.0

5.4

5.3

5.0

4.8

52.0

5.0

4.4

3.7

4.0

50.0

3.0

48.0

2.0

46.0

1.0

44.0

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

7.50

0.0

7.00

(5.0)

6.50

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

August 19, 2016

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

59,166

4.4

18.0

23.2

Russia

Micex

1,970

2.8

4.2

16.5

India

Nifty

8,673

1.9

10.2

2.5

China

Shanghai Composite

3,104

2.3

10.3

(21.1)

South Africa

Top 40

46,064

(0.8)

(0.7)

1.7

Mexico

Mexbol

48,437

2.9

7.3

12.5

Indonesia

LQ45

942

5.5

15.0

15.8

Malaysia

KLCI

1,695

1.5

3.8

3.6

Thailand

SET 50

988

4.8

11.5

5.3

USA

Dow Jones

18,598

0.2

6.1

9.5

FTSE

6,869

2.6

13.5

11.0

Japan

Nikkei

16,746

(0.1)

(1.0)

(20.5)

Germany

DAX

10,603

6.2

6.9

9.9

France

CAC

4,437

2.5

1.9

(4.7)

Source: Bloomberg, Angel Research

www.angelbroking.com

Stock Watch

August 19, 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

4,321

1,937

2,164

13.3

14.3

9.0

11.0

24.7

20.2

4.3

3.8

18.4

19.8

2.3

2.0

United Phosphorus

Accumulate

642

684

27,525

15,176

17,604

18.5

37.4

44.6

17.2

14.4

3.4

2.8

21.4

21.2

1.9

1.6

Auto & Auto Ancillary

Ashok Leyland

Buy

111

24,973

22,407

26,022

10.6

5.2

6.4

16.8

13.7

3.8

3.2

23.6

24.7

1.2

1.0

Bajaj Auto

Neutral

2,943

85,153

25,093

27,891

19.5

19.2

143.9

162.5

20.5

18.1

5.7

4.9

30.3

29.4

3.1

2.7

Bharat Forge

Neutral

841

19,585

7,726

8,713

20.5

21.2

35.3

42.7

23.8

19.7

4.4

4.0

18.9

20.1

2.6

2.3

Eicher Motors

Neutral

22,175

60,229

16,583

20,447

17.5

18.0

598.0

745.2

37.1

29.8

12.7

9.7

41.2

38.3

3.5

2.7

Gabriel India

Neutral

116

1,668

1,544

1,715

9.0

9.3

5.4

6.3

21.5

18.4

4.1

3.6

18.9

19.5

1.0

0.9

Hero Motocorp

Neutral

3,369

67,283

31,253

35,198

15.3

15.0

172.3

192.1

19.6

17.5

7.2

6.1

38.9

37.0

2.0

1.8

Jamna Auto Industries Neutral

231

1,842

1,486

1,620

9.8

9.9

15.0

17.2

15.4

13.4

3.4

2.9

21.8

21.3

1.3

1.2

L G Balakrishnan & Bros Neutral

463

726

1,302

1,432

11.6

11.9

43.7

53.0

10.6

8.7

1.5

1.4

13.8

14.2

0.6

Mahindra and Mahindra Neutral

1,460

90,695

46,534

53,077

11.6

11.7

67.3

78.1

21.7

18.7

3.5

3.1

15.4

15.8

1.9

1.7

Maruti

Neutral

4,917

148,537

69,186

82,217

14.7

14.4

198.5

241.4

24.8

20.4

4.8

3.9

20.2

20.0

1.8

1.5

Minda Industries

Neutral

1,131

1,794

2,728

3,042

9.0

9.1

68.2

86.2

16.6

13.1

3.8

3.0

23.8

24.3

0.7

0.6

Motherson Sumi

Neutral

335

44,272

45,896

53,687

7.8

8.3

13.0

16.1

25.7

20.8

8.3

6.6

34.7

35.4

1.0

0.9

Rane Brake Lining

Neutral

647

512

511

562

11.3

11.5

28.1

30.9

23.0

20.9

3.5

3.2

15.3

15.0

1.1

Setco Automotive

Neutral

609

741

837

13.0

15.2

17.0

3.0

2.7

0.5

15.8

16.3

1.2

1.1

Tata Motors

Neutral

512

147,810

300,209

338,549

8.9

8.4

42.7

54.3

12.0

9.4

1.9

1.6

15.6

17.2

0.6

0.5

TVS Motor

Accumulate

312

330

14,816

13,390

15,948

6.9

7.1

12.8

16.5

24.4

18.9

6.1

4.8

26.3

27.2

1.1

0.9

Amara Raja Batteries

Buy

920

1,076

15,715

5,717

6,733

18.7

18.9

38.4

48.9

24.0

18.8

6.0

4.9

25.3

24.8

2.6

2.1

Exide Industries

Neutral

177

15,041

7,439

8,307

15.0

8.1

9.3

21.9

19.0

3.1

2.7

14.3

16.7

1.6

1.5

Apollo Tyres

Neutral

177

9,012

12,877

14,504

14.3

13.9

21.4

23.0

8.3

7.7

1.3

1.1

16.4

15.2

0.9

0.8

Ceat

Buy

869

1,119

3,514

7,524

8,624

13.0

12.7

131.1

144.3

6.6

6.0

1.2

1.0

19.8

18.6

0.5

JK Tyres

Neutral

113

2,555

7,455

8,056

15.0

21.8

24.5

5.2

4.6

1.1

0.9

22.8

21.3

0.5

0.4

Swaraj Engines

Neutral

1,150

1,428

660

810

15.2

16.4

54.5

72.8

21.1

15.8

6.6

6.0

31.5

39.2

2.0

1.6

Subros

Neutral

105

631

1,488

1,681

11.7

11.9

6.4

7.2

16.4

14.7

1.7

1.6

10.8

11.4

0.7

0.6

Indag Rubber

Neutral

170

447

286

326

19.8

16.8

11.7

13.3

14.6

12.8

2.5

2.3

17.8

17.1

1.2

1.1

Capital Goods

ACE

Neutral

429

709

814

4.1

4.6

1.4

2.1

31.0

20.7

1.3

1.2

4.4

6.0

0.8

0.7

BEML

Accumulate

1,026

1,157

4,272

3,451

4,055

6.3

9.2

31.4

57.9

32.7

17.7

2.0

1.8

6.3

10.9

1.4

1.1

Bharat Electronics

Buy

1,226

1,414

29,423

8,137

9,169

16.8

17.2

58.7

62.5

20.9

19.6

3.2

2.9

44.6

46.3

2.6

2.3

www.angelbroking.com

Stock Watch

August 19, 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

366

407

12,102

6,511

7,514

7.9

8.7

12.9

16.3

28.4

22.4

5.1

4.5

16.7

18.5

1.6

1.4

BGR Energy

Neutral

114

825

16,567

33,848

6.0

5.6

7.8

5.9

14.7

19.4

0.8

4.7

4.2

0.2

0.1

BHEL

Neutral

140

34,303

28,797

34,742

2.8

2.3

6.9

60.9

20.3

1.0

1.3

4.8

0.8

0.6

Blue Star

Accumulate

490

527

4,671

4,351

5,024

6.4

7.1

17.2

20.6

28.5

23.7

18.6

15.5

23.1

24.1

1.1

1.0

Crompton Greaves

Neutral

5,481

5,777

6,120

5.9

7.0

3.3

4.5

26.5

19.4

1.2

1.1

4.4

5.9

0.9

0.8

Greaves Cotton

Neutral

140

3,423

1,755

1,881

16.8

16.9

7.8

8.5

18.0

16.5

3.6

3.3

20.6

20.9

1.6

1.5

Inox Wind

Buy

188

286

4,175

5,605

6,267

15.7

16.4

24.8

30.0

7.6

6.3

2.1

1.6

25.9

24.4

0.8

0.7

KEC International

Neutral

135

3,478

9,294

10,186

7.9

8.1

9.9

11.9

13.7

11.4

2.0

1.7

15.6

16.3

0.6

Thermax

Neutral

857

10,208

5,421

5,940

7.3

25.7

30.2

33.3

28.4

4.0

3.7

12.2

13.1

1.8

1.6

VATech Wabag

Buy

579

681

3,154

3,136

3,845

8.9

9.1

26.0

35.9

22.3

16.1

2.8

2.4

13.4

15.9

0.9

0.7

Cement

ACC

Neutral

1,691

31,753

11,225

13,172

13.2

16.9

44.5

75.5

38.0

22.4

3.6

3.3

11.2

14.2

2.8

2.4

Ambuja Cements

Neutral

272

42,219

9,350

10,979

18.2

22.5

5.8

9.5

46.9

28.6

3.9

3.5

10.2

12.5

4.5

3.9

India Cements

Neutral

126

3,858

4,364

4,997

18.5

19.2

7.9

11.3

15.9

11.1

1.1

8.0

8.5

1.6

1.4

JK Cement

Neutral

788

5,507

4,398

5,173

15.5

17.5

31.2

55.5

25.2

14.2

3.0

2.6

12.0

15.5

1.8

1.5

J K Lakshmi Cement

Neutral

444

5,223

2,913

3,412

14.5

19.5

7.5

22.5

59.2

19.7

3.6

3.1

12.5

18.0

2.4

2.0

Orient Cement

Neutral

167

3,419

2,114

2,558

18.5

20.5

8.1

11.3

20.6

14.8

3.0

2.6

9.0

14.0

2.2

1.8

UltraTech Cement

Neutral

3,871

106,240

25,768

30,385

21.0

23.5

111.0

160.0

34.9

24.2

4.5

3.9

13.5

15.8

4.2

3.5

Construction

ITNL

Buy

2,179

8,946

10,017

31.0

31.6

8.1

9.1

8.2

7.3

0.3

4.2

5.0

3.6

3.3

KNR Constructions

Neutral

712

2,001

1,210

1,595

15.4

16.0

33.9

52.1

21.0

13.7

3.2

2.8

13.6

18.0

1.7

1.2

Larsen & Toubro

Accumulate

1,483

1,700

138,184

67,665

77,249

10.7

11.5

57.3

71.2

25.9

20.8

2.4

2.2

12.6

14.3

2.2

1.9

Gujarat Pipavav Port

Neutral

174

8,429

705

788

52.2

51.7

5.0

5.6

34.9

31.1

3.4

3.1

11.2

11.6

9.9

MBL Infrastructures

Buy

121

285

500

2,797

3,405

14.7

15.4

21.0

34.8

5.7

3.5

0.6

0.5

11.0

16.2

0.8

Nagarjuna Const.

Neutral

4,787

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

117

647

2,996

2,350

2,904

13.4

13.7

48.0

42.0

2.4

2.8

0.5

0.4

16.8

13.2

1.4

1.1

Simplex Infra

Neutral

298

1,475

6,829

7,954

10.5

31.4

37.4

9.5

8.0

1.0

0.9

9.9

13.4

0.6

0.5

Power Mech Projects

Neutral

536

789

1,801

2,219

12.7

14.6

72.1

113.9

7.4

4.7

1.4

1.2

16.8

11.9

0.4

0.3

Sadbhav Engineering

Neutral

288

4,937

3,598

4,140

10.3

10.6

9.0

11.9

32.0

24.2

3.4

2.9

9.9

11.9

1.7

1.4

NBCC

Neutral

242

14,517

7,428

9,549

7.9

8.6

8.2

11.0

29.5

22.0

1.5

1.2

28.2

28.7

1.7

1.2

MEP Infra

Neutral

673

1,877

1,943

30.6

29.8

3.0

4.2

13.8

9.9

6.7

4.5

0.6

1.7

1.6

www.angelbroking.com

Stock Watch

August 19, 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

SIPL

Neutral

3,406

1,036

1,252

65.5

66.2

(8.4)

(5.6)

3.6

4.1

(22.8)

(15.9)

11.5

9.6

Engineers India

Neutral

228

7,696

1,725

1,935

16.0

19.1

11.4

13.9

20.0

16.4

2.8

2.7

13.4

15.3

3.4

3.0

Financials

Axis Bank

Neutral

593

141,535

58,081

66,459

3.5

32.4

44.6

18.3

13.3

2.4

2.1

13.6

16.5

Bank of Baroda

Neutral

155

35,622

19,980

23,178

1.8

11.5

17.3

13.4

8.9

1.5

1.3

8.3

10.1

Canara Bank

Neutral

265

14,378

15,225

16,836

1.8

14.5

28.0

18.3

9.5

1.3

1.0

5.8

8.5

Dewan Housing Finance Neutral

266

7,772

2,225

2,688

2.9

29.7

34.6

9.0

7.7

1.5

1.2

16.1

16.8

Equitas Holdings

Buy

180

235

6,030

939

1,281

11.7

11.5

5.8

8.2

31.0

21.9

2.7

2.4

10.9

11.5

Federal Bank

Neutral

11,142

9,353

10,623

2.9

4.4

5.8

14.7

11.2

1.4

1.3

9.5

11.0

HDFC

Neutral

1,374

217,248

11,475

13,450

3.4

45.3

52.5

30.3

26.2

5.9

5.2

20.2

20.5

HDFC Bank

Accumulate

1,251

1,350

316,771

46,097

55,433

4.5

58.4

68.0

21.4

18.4

3.8

3.1

18.8

18.6

ICICI Bank

Neutral

253

147,081

39,029

45,903

3.3

16.7

16.3

15.1

15.5

1.9

1.7

10.1

12.4

LIC Housing Finance

Neutral

554

27,976

3,712

4,293

2.6

2.5

39.0

46.0

14.2

12.1

2.7

2.3

19.9

20.1

Punjab Natl.Bank

Neutral

127

24,849

23,532

23,595

2.3

2.4

6.8

12.6

18.6

10.0

2.9

2.0

3.3

6.5

South Ind.Bank

Neutral

2,923

6,435

7,578

2.5

2.7

3.1

8.0

7.0

1.0

0.9

10.1

11.2

St Bk of India

Neutral

248

192,672

88,650

98,335

2.6

13.5

18.8

18.4

13.2

1.8

1.5

7.0

8.5

Union Bank

Neutral

133

9,174

13,450

14,925

2.3

25.5

34.5

5.2

3.9

0.8

0.7

7.5

10.2

Yes Bank

Neutral

1,321

55,595

8,978

11,281

3.3

3.4

74.0

90.0

17.9

14.7

3.4

2.9

17.0

17.2

FMCG

Asian Paints

Neutral

1,109

106,332

17,128

18,978

16.8

16.4

19.1

20.7

58.0

53.6

20.2

19.1

34.8

35.5

6.1

5.5

Britannia

Neutral

3,319

39,824

9,795

11,040

14.6

14.9

80.3

94.0

41.3

35.3

17.0

13.1

41.2

3.9

3.4

Colgate

Neutral

968

26,334

4,605

5,149

23.4

23.8

26.9

40.7

36.0

22.5

17.6

64.8

66.8

5.6

5.0

Dabur India

Neutral

302

53,188

8,315

9,405

19.8

20.7

8.1

9.2

37.3

32.9

10.4

8.6

31.6

31.0

6.0

5.3

GlaxoSmith Con*

Neutral

6,328

26,611

4,350

4,823

21.2

21.4

179.2

196.5

35.3

32.2

9.4

7.9

27.1

26.8

5.5

4.9

Godrej Consumer

Neutral

1,529

52,066

10,235

11,428

18.4

18.6

41.1

44.2

37.2

34.6

8.3

7.0

24.9

24.8

5.2

4.6

HUL

Neutral

907

196,189

35,252

38,495

17.6

17.4

20.4

21.9

44.4

41.4

36.5

32.0

82.2

77.3

5.4

4.9

ITC

Accumulate

252

283

304,426

40,059

44,439

39.0

39.2

9.1

10.1

27.7

25.0

7.6

6.6

27.2

26.5

7.1

6.4

Marico

Neutral

301

38,770

6,430

7,349

18.8

19.5

6.4

7.7

47.0

39.0

14.2

11.9

33.2

32.5

5.8

5.1

Nestle*

Neutral

6,700

64,595

10,073

11,807

20.7

21.5

124.8

154.2

53.7

43.5

22.0

19.8

34.8

36.7

6.2

5.3

Tata Global

Neutral

139

8,763

8,675

9,088

9.8

7.4

8.2

18.8

16.9

2.1

2.0

7.9

8.1

0.9

Procter & Gamble

Neutral

7,028

22,813

2,939

3,342

23.2

23.0

146.2

163.7

48.1

42.9

107.6

103.2

25.3

23.5

7.3

6.4

Hygiene

www.angelbroking.com

Stock Watch

August 19, 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

786

1,000

110,822

49,242

57,168

20.5

55.7

64.1

14.1

12.3

2.9

2.2

20.3

17.9

2.1

1.7

Infosys

Buy

1,024

1,370

235,276

69,934

79,025

27.5

64.8

72.0

15.8

14.2

3.5

3.2

22.0

22.3

2.8

2.4

TCS

Accumulate

2,637

3,004

519,543

121,684

136,286

27.3

135.0

150.1

19.5

17.6

6.5

6.0

33.2

33.9

4.0

3.6

Tech Mahindra

Buy

469

700

45,570

30,347

33,685

17.0

37.5

41.3

12.5

11.4

2.7

2.4

21.8

20.7

1.2

1.1

Wipro

Buy

525

680

129,663

51,631

55,822

21.7

17.9

35.9

36.9

14.6

14.2

3.1

2.8

19.0

18.1

2.2

2.0

Media

D B Corp

Neutral

406

7,456

2,297

2,590

27.4

28.2

21.0

23.4

19.3

17.3

4.5

3.9

23.7

23.1

3.0

2.6

HT Media

Neutral

1,825

2,693

2,991

12.6

12.9

7.9

9.0

9.9

8.7

0.8

7.8

8.3

0.3

0.1

Jagran Prakashan

Accumulate

185

205

6,050

2,355

2,635

28.0

9.9

10.8

18.7

17.1

3.7

3.2

21.7

2.6

2.3

Sun TV Network

Neutral

484

19,087

2,850

3,265

70.1

71.0

26.2

30.4

18.5

15.9

4.7

4.2

24.3

25.6

6.3

5.4

Hindustan Media

Neutral

270

1,982

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

303

363

1,806

637

743

27.5

18.4

21.4

16.5

14.2

2.9

2.4

17.4

17.2

2.4

2.0

Metals & Mining

Coal India

Neutral

339

213,998

84,638

94,297

21.4

22.3

24.5

27.1

13.8

12.5

5.8

5.5

42.6

46.0

2.0

1.8

Hind. Zinc

Neutral

228

96,337

14,252

18,465

55.9

48.3

15.8

21.5

14.4

10.6

2.4

2.1

17.0

20.7

6.8

5.2

Hindalco

Neutral

154

31,852

107,899

112,095

7.4

8.2

9.2

13.0

16.8

11.9

0.8

4.8

6.6

0.8

JSW Steel

Neutral

1,780

43,025

53,201

58,779

16.1

16.2

130.6

153.7

13.6

11.6

1.8

1.6

14.0

14.4

1.6

1.4

NMDC

Neutral

107

42,284

6,643

7,284

44.4

47.7

7.1

7.7

15.0

13.9

1.3

8.8

9.2

4.1

3.7

SAIL

Neutral

19,866

47,528

53,738

(0.7)

2.1

(1.9)

2.6

18.5

0.5

(1.6)

3.9

1.3

1.2

Vedanta

Neutral

173

51,260

71,744

81,944

19.2

21.7

13.4

20.1

12.9

8.6

1.1

1.0

8.4

11.3

1.1

0.8

Tata Steel

Neutral

387

37,605

121,374

121,856

7.2

8.4

18.6

34.3

20.8

11.3

1.3

1.2

6.1

10.1

0.9

Oil & Gas

Cairn India

Neutral

202

37,928

9,127

10,632

4.3

20.6

8.8

11.7

23.0

17.3

0.7

3.3

4.2

5.6

4.6

GAIL

Neutral

366

46,376

56,220

65,198

9.3

10.1

27.1

33.3

13.5

11.0

1.2

9.3

10.7

1.0

0.9

ONGC

Neutral

241

206,016

137,222

152,563

15.0

21.8

19.5

24.1

12.4

10.0

1.1

1.0

8.5

10.1

1.8

1.6

Petronet LNG

Neutral

327

24,510

Indian Oil Corp

Neutral

562

136,451

373,359

428,656

5.9

5.5

54.0

59.3

10.4

9.5

1.6

1.5

16.0

15.6

0.5

0.4

Reliance Industries

Neutral

1,017

329,627

301,963

358,039

12.1

12.6

87.7

101.7

11.6

10.0

1.2

1.1

10.7

11.3

1.6

1.3

Pharmaceuticals

Alembic Pharma

Neutral

642

12,094

3,483

4,083

20.2

21.4

24.3

30.4

26.4

21.1

6.0

4.8

25.5

25.3

3.4

2.8

Aurobindo Pharma

Buy

754

877

44,101

15,720

18,078

23.7

41.4

47.3

18.2

15.9

4.7

3.7

29.6

26.1

3.0

2.6

Aventis*

Neutral

4,337

9,989

2,357

2,692

17.3

153.5

169.2

28.3

25.6

4.8

3.9

25.8

28.4

3.9

3.2

Cadila Healthcare

Accumulate

367

400

37,617

11,126

13,148

22.0

17.1

20.0

21.5

18.4

5.5

4.4

28.8

26.6

3.4

2.8

www.angelbroking.com

Stock Watch

August 19, 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

Cipla

Reduce

552

490

44,325

15,378

18,089

17.4

18.4

21.6

27.2

25.5

20.3

3.3

2.9

13.7

15.2

3.1

2.6

Dr Reddy's

Neutral

3,028

51,631

16,043

18,119

23.1

24.7

126.0

157.8

24.0

19.2

3.5

3.1

15.7

17.1

3.2

2.8

Dishman Pharma

Sell

174

2,808

1,718

1,890

22.7

22.8

9.5

11.3

18.3

15.4

1.8

1.6

10.1

10.9

2.1

1.8

GSK Pharma*

Neutral

3,145

26,636

3,528

3,811

16.6

18.8

51.8

59.4

60.7

52.9

16.2

26.3

30.6

7.3

6.8

Indoco Remedies

Sell

305

225

2,811

1,112

1,289

18.2

13.2

15.6

23.1

19.6

4.1

3.5

19.2

2.6

2.3

Ipca labs

Buy

517

613

6,527

3,303

3,799

15.3

17.3

19.7

29.9

26.3

2.6

2.4

9.1

9.4

2.1

1.8

Lupin

Accumulate

1,590

1,809

71,679

15,912

18,644

26.4

26.7

58.1

69.3

27.4

22.9

5.3

4.4

21.4

20.9

4.6

3.8

Sun Pharma

Buy

789

944

189,828

31,129

35,258

30.0

30.9

28.0

32.8

28.2

24.1

4.3

3.6

18.7

18.9

5.7

4.8

Power

Tata Power

Neutral

20,799

36,916

39,557

17.4

27.1

5.1

6.3

15.1

12.2

1.3

1.2

9.0

10.3

1.6

1.4

NTPC

Neutral

167

137,864

86,605

95,545

17.5

20.8

11.8

13.4

14.2

12.5

1.4

1.3

10.5

11.1

2.9

Power Grid

Neutral

182

95,189

25,763

29,762

74.3

73.1

14.8

17.3

12.3

10.5

1.9

1.7

16.9

17.5

8.0

7.6

Real Estate

MLIFE

Buy

432

554

1,774

925

1,139

18.4

22.3

18.3

33.8

23.6

12.8

1.1

4.9

8.5

2.6

2.1

Telecom

Bharti Airtel

Neutral

352

140,868

105,086

114,808

34.5

34.7

12.2

16.4

28.9

21.5

2.0

1.8

6.8

8.4

2.3

2.0

Idea Cellular

Neutral

33,740

40,133

43,731

37.2

37.1

6.4

6.5

14.6

14.4

1.2

1.1

8.2

7.6

1.9

1.6

zOthers

Abbott India

Neutral

4,683

9,950

3,153

3,583

14.1

14.4

152.2

182.7

30.8

25.6

151.1

129.0

25.6

26.1

2.9

2.5

Bajaj Electricals

Accumulate

253

277

2,558

5,099

5,805

5.7

5.9

11.4

14.6

22.3

17.4

3.0

2.6

13.4

15.1

0.5

0.4

Finolex Cables

Neutral

430

6,576

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*

Buy

547

631

1,261

1,598

1,704

10.4

10.2

49.4

52.6

11.1

10.4

51.1

44.8

18.2

17.0

0.5

62.3

Hitachi

Neutral

1,411

3,836

2,081

2,433

8.8

8.9

33.4

39.9

42.2

35.4

34.1

28.4

22.1

21.4

1.8

1.5

Jyothy Laboratories

Neutral

285

5,156

1,440

2,052

11.5

13.0

8.5

10.0

33.5

28.5

8.1

7.5

18.6

19.3

3.9

2.7

MRF

Buy

36,578

45,575

15,513

Page Industries

Neutral

14,174

15,809

2,450

3,124

20.1

17.6

299.0

310.0

47.4

45.7

315.7

241.0

47.1

87.5

6.5

5.1

Relaxo Footwears

Neutral

466

5,593

2,085

2,469

9.2

8.2

7.6

8.0

61.6

58.6

23.9

20.4

17.9

18.8

2.8

2.4

Siyaram Silk Mills

Buy

1,100

1,347

1,031

1,799

2,040

11.6

11.7

104.9

122.4

10.5

9.0

1.7

1.5

16.4

0.8

0.7

Styrolution ABS India*

Neutral

564

992

1,440

1,537

9.2

9.0

40.6

42.6

13.9

13.2

35.5

32.3

12.3

11.6

0.6

TVS Srichakra

Buy

2,526

2,932

1,934

2,304

2,614

13.7

13.8

231.1

266.6

10.9

9.5

283.8

223.4

33.9

29.3

0.8

0.7

HSIL

Neutral

342

2,473

2,384

2,515

15.8

16.3

15.3

19.4

22.4

17.6

22.2

19.1

7.8

9.3

1.2

1.1

Kirloskar Engines India

Neutral

288

4,161

2,554

2,800

9.9

10.0

10.5

12.1

27.4

23.8

11.5

10.8

10.7

11.7

1.3

1.1

Ltd

M M Forgings

Neutral

411

496

546

608

20.4

20.7

41.3

48.7

10.0

8.4

56.3

49.8

16.6

17.0

0.8

0.7

www.angelbroking.com

Stock Watch

August 19, 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

Banco Products (India) Neutral

218

1,559

1,353

1,471

12.3

12.4

14.5

16.3

15.0

13.4

20.8

18.7

14.5

14.6

1.1

117.4

Competent Automobiles Neutral

157

1,137

1,256

3.1

2.7

28.0

23.6

5.6

6.7

30.3

27.3

14.3

11.5

0.1

Nilkamal

Neutral

1,182

1,763

1,995

2,165

10.7

10.4

69.8

80.6

16.9

14.7

67.5

58.7

16.6

16.5

0.9

0.8

Visaka Industries

Neutral

158

250

1,051

1,138

10.3

10.4

21.0

23.1

7.5

6.8

20.2

18.9

9.0

9.2

0.5

Transport Corporation of

Neutral

358

2,741

2,671

2,911

8.5

8.8

13.9

15.7

25.8

22.9

3.5

3.2

13.7

13.8

1.1

1.0

India

Elecon Engineering

Accumulate

620

1,482

1,660

13.7

14.5

3.9

5.8

14.6

9.8

3.4

3.2

7.8

10.9

0.7

Surya Roshni

Buy

174

201

760

3,342

3,625

7.8

7.5

17.3

19.8

10.0

8.8

19.1

15.3

10.5

10.8

0.5

0.4

MT Educare

Neutral

127

505

366

417

17.7

18.2

9.4

10.8

13.5

11.7

3.0

2.6

22.2

22.3

1.3

1.1

Radico Khaitan

Buy

103

125

1,366

1,659

1,802

13.0

13.2

6.3

7.4

16.2

13.9

1.4

1.3

8.6

9.3

1.3

1.1

Garware Wall Ropes

Neutral

511

1,117

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

401

2,266

287

355

38.0

40.0

11.3

14.2

35.5

28.2

5.1

4.5

21.4

23.9

7.6

6.1

Linc Pen & Plastics

Accumulate

258

283

381

382

420

9.3

9.5

13.5

15.7

19.2

16.4

3.3

2.8

17.1

17.3

1.1

1.0

The Byke Hospitality

Neutral

161

645

287

384

20.5

7.6

10.7

21.2

15.0

4.4

3.6

20.7

23.5

2.3

1.7

Interglobe Aviation

Neutral

880

31,724

21,122

26,005

14.5

27.6

110.7

132.1

8.0

6.7

47.6

34.0

168.5

201.1

1.5

1.2

Coffee Day Enterprises

Neutral

241

4,965

2,964

3,260

20.5

21.2

4.7

8.0

30.1

2.8

2.6

5.5

8.5

2.1

1.9

Ltd

Navneet Education

Neutral

101

2,395

1,062

1,147

24.0

6.1

6.6

16.5

15.2

3.4

3.0

20.6

19.8

2.3

2.2

Navkar Corporation

Buy

195

265

2,782

408

612

42.9

42.3

6.8

11.5

28.8

17.0

2.0

1.8

6.9

10.5

7.7

5.2

UFO Moviez

Neutral

508

1,401

619

685

33.2

33.4

30.0

34.9

16.9

14.6

2.3

2.0

13.8

13.9

2.0

1.6

VRL Logistics

Neutral

305

2,780

1,902

2,119

16.7

16.6

14.6

16.8

20.9

18.1

4.6

4.0

21.9

22.2

1.6

1.4

Team Lease Serv.

Neutral

1,061

1,814

3,229

4,001

1.5

1.8

22.8

32.8

46.6

32.3

5.0

4.3

10.7

13.4

0.5

0.4

S H Kelkar & Co.

Neutral

292

4,222

1,036

1,160

15.1

15.0

6.1

7.2

47.8

40.7

5.1

4.7

10.7

11.5

3.9

3.5

Quick Heal

Neutral

240

1,679

408

495

27.3

27.0

7.7

8.8

31.0

27.3

2.9

9.3

10.6

3.3

2.7

Narayana Hrudaya

Neutral

305

6,225

1,873

2,166

11.5

11.7

2.6

4.0

115.2

76.8

7.1

6.4

6.1

8.3

3.4

2.9

Manpasand Bever.

Neutral

723

3,618

836

1,087

19.6

19.4

16.9

23.8

42.8

30.4

5.1

4.5

12.0

14.8

4.1

3.0

Parag Milk Foods

Neutral

318

2,675

1,919

2,231

9.3

9.6

9.5

12.9

33.7

24.6

5.2

4.3

15.5

17.5

1.5

1.3

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 18, 2016

www.angelbroking.com

Market Outlook

August 19, 2016

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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