Market Outlook
December 20, 2017
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open negative tracking global indices and SGX Nifty.
BSE Sensex
0.7
235
33,837
After climbing to record highs in the previous session, stocks gave back some
Nifty
0.7
74
10,463
ground over the course of the trading session on Tuesday. Selling pressure was
Mid Cap
1.5
252
17,356
somewhat subdued, however, as House Republicans voted to approve the first major
Small Cap
1.5
275
18,528
tax reform legislation in several decades, cutting tax rates for businesses and
Bankex
0.5
132
29,055
individuals. The Dow dipped 37.45 points or 0.2 percent to 24,754.75, the Nasdaq
slid 30.91 points or 0.4 percent to 6,963.85 and the S&P 500 fell 8.69 points or 0.3
percent to 2,681.47.
Global Indices
Chg (%)
(Pts)
(Close)
U.K. stocks edged higher Tuesday, as continued optimism over U.S. tax cuts helped
Dow Jones
(0.2)
(37)
24,755
British blue-chips extend gains and close at six-week highs. The FTSE 100 index,
Nasdaq
(0.4)
(31)
6,964
rose 0.1% to end at 7,544, its highest close since Nov. 6.
FTSE
0.1
7
7,544
Nikkei
(0.1)
(34)
22,868
Benchmark indices ended the session on a strong note, led by gains in auto stocks
and midcaps in the broader market. The Nifty is under 30 points away from all-time
Hang Seng
0.7
203
29,254
high figure. The Sensex closed up 235.06 points or 0.70% at 33836.74, while the
Shanghai Com
0.9
29
3,297
Nifty was up 74.40 points or 0.72% at 10463.20. The market breadth was positive
as 1,862 shares advanced against a decline of 803 shares, while 160 shares were
Advances / Declines
BSE
NSE
unchanged.
Advances
1,918
1332
News Analysis
Declines
785
417
Auto demand to remain strong
Unchanged
159
78
Detailed analysis on Pg2
Volumes (` Cr)
Investor’s Ready Reckoner
BSE
5,235
Key Domestic & Global Indicators
NSE
31,093
Stock Watch: Latest investment recommendations on 150+ stocks
Refer Pg5 onwards
Net Inflows (` Cr)
Net
Mtd
Ytd
Top Picks
FII
118
(3,269)
53,867
CMP
Target
Upside
Company
Sector
Rating
*MFs
357
6,026 1,14,674
(`)
(`)
(%)
Blue Star
Capital Goods Accumulate
802
867
8.1
Dewan Housing Finance
Financials
Buy
610
712
16.8
Top Gainers
Price (`)
Chg (%)
Asian Granito
Other
Accumulate
526
570
8.4
Deltacorp
304
12.9
Navkar Corporation
Other
Buy
189
265
40.0
Jisljaleqs
122
11.5
KEI Industries
Capital Goods
Buy
360
436
21.2
Den
114
11.0
More Top Picks on Pg4
Rcom
13
8.0
Key Upcoming Events
Renuka
17
7.2
Previous
Consensus
Date
Region
Event Description
Reading
Expectations
Dec20
US
Existing home sales
5.48
Nov
Top Losers
Price (`)
Chg (%)
Dec20
US
New home sales
Nov
685.00
Unionbank
151
(2.5)
Dec22
UK
GDP (YoY)
3Q F
1.50
Ttkprestig
7,594
(2.4)
Dec22
US
Consumer Confidence
Dec
129.50
Natcopharm
983
(2.4)
Feb14
Germany GDP nsa (YoY)
4Q P
2.30
More Events on Pg7
Indhotel
118
(1.9)
Hcltech
870
(1.8)
As on December 15 2017
Market Outlook
December 20, 2017
News Analysis
Auto demand to remain strong
The domestic auto sectors looks in the top shape with the pick-up in the demand
expected in the near term. The interest rates have been positive for the sector as
urban demand has been very strong. With the recovery in the rural demand, the
auto companies are likely to see further pick up and double digit volume growth is
likely to continue. Maruti is expected gain market share marginally whereas the
2W companies should be seeing better demand, particularly due to the growth in
the motorbikes due to the rural demand pick-up. The commercial vehicles makers
have been 30-50% growth in the recent months and with the public sector
spending gathering steam, we are hopeful that the CV volumes are also likely to
be strong.
Economic and Political News
Coal demand to be flat till '22; India coal-fired power output to rise 4%
Govt recovered less than 9% service tax arrears in FY17: CAG
Government to give incentives to boost electric vehicles
Corporate News
Dr Reddy's settles 6-yr-old drug packaging case with US govt for $5 mn
Amara Raja invests `700 cr in new two-wheeler battery facility
Tata Steel seeks to raise `12,800 crore to fund expansion
Bharti Airtel to become number 2 telecom player in Rwanda with Tigo
acquisition
Market Outlook
December 20, 2017
Top Picks HHHHH
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
Strong growth in domestic business due to its leade`hip
in acute therapeutic segment. Alkem expects to launch
Alkem Laboratories
26,122
2,185
2,341
7.2
more products in USA, which bodes for its international
business.
We expect the company would report strong profitability
Asian Granito
1,582
526
570
8.4
owing to better product mix, higher B2C sales and
amalgamation synergy.
Favorable outlook for the AC industry to augur well for
Cooling products business which is out pacing the
Blue Star
7,689
802
867
8.1
market growth. EMPPAC division's profitability to
improve once operating environment turns around.
With a focus on the low and medium income (LMI)
consumer segment, the company has increased its
Dewan Housing Finance
19,121
610
712
16.8
presence in tier-II & III cities where the growth
opportunity is immense.
Loan growth is likely to pick up after a sluggish FY17.
Lower credit cost will help in strong bottom-line growth.
Karur Vysya Bank
8,443
117
180
53.8
Increasing share of CASA will help in NIM
improvement.
High order book execution in EPC segment, rising B2C
KEI Industries
2,818
360
436
21.2
sales and higher exports to boost the revenues and
profitability
Expected to benefit from the lower capex requirement
Music Broadcast
2,142
376
434
15.6
and 15 year long radio broadcast licensing.
Massive capacity expansion along with rail advantage
Navkar Corporation
2,849
189
265
40.0
at ICD as well CFS augur well for the company
Strong brands and distribution network would boost
Siyaram Silk Mills
3,531
753
800
6.2
growth going ahead. Stock currently trades at an
inexpensive valuation.
Market leadership in Hindi news genre and no.
2
viewership ranking in English news genre, exit from the
TV Today Network
2,413
404
435
7.6
radio business, and anticipated growth in ad spends by
corporate to benefit the stock.
After GST, the company is expected to see higher
volumes along with improving product mix. The Gujarat
Maruti Suzuki
2,96,174
9,805
10,784
10.0
plant will also enable higher operating leverage which
will be margin accretive.
We expect loan book to grow at 24.3% over next two
GIC Housing
2,216
412
655
59.2
year; change in borrowing mix will help in NIM
improvement
We expect CPIL to report net Revenue/PAT CAGR of
~17%/16% over FY2017-20E mainly due to healthy
7,461
336
400
19.1
growth in plywood & lamination business, forayed into
Century Plyboards India
MDF & Particle boards on back of strong brand &
distribution network.
We expect sales/PAT to grow at 13.5%/20% over next
LT Foods
2,289
86
96
11.9
two years on the back of strong distribution network &
addition of new products in portfolio.
We expect sales/PAT to grow at 13%/16% over next two
years on the back of strong healthy demand in writing
Ruchira Papers
429
193
244
26.5
& printing paper and Kraft paper. Further, China had
banned making paper from waste pulp which would
benefit Indian paper companies.
Source: Company, Angel Research
Market Outlook
December 20, 2017
Key Upcoming Events
Global economic events release calendar
Bl oomberg Data
D ate
Time
C ountry
Event Description
Unit
Period
L ast Reporte d
E stimate d
Dec 20, 2017
8:30 PM US
Existing home sales
Million
Nov
5.48
Dec 22, 2017
8:30 PM US
New home sales
Thousands
Nov
685.00
3:00 PM UK
GDP (YoY)
% Change
3Q F
1.50
Dec 27, 2017
8:30 PM US
Consumer Confidence
S.A./ 1985=100
Dec
129.50
Feb 14, 2018
12: 30 PM Germany GDP nsa (YoY)
% Change
4Q P
2.30
Source: Bloomberg, Angel Research
Market Outlook
December 20, 2017
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
10.0
5.0
4.5
9.1
4.4
4.1
9.0
8.0
7.9
4.0
3.5
7.6
7.5
3.2
8.0
7.3
7.2
2.9
7.0
3.0
2.4
7.0
6.3
2.2
6.1
6.1
5.7
2.0
6.0
1.2
1.0
5.0
1.0
4.0
-
3.0
(1.0)
(0.3)
Source: CSO, Angel Research
Source: MOSPI, Angel Research
Exhibit 3: Monthly CPI inflation trends
Exhibit 4: Manufacturing and services PMI
56.0
Mfg. PMI
Services PMI
(%)
6.0
54.0
4.9
52.0
5.0
3.9
50.0
3.7
3.6
4.0
3.4
3.3
3.3
3.2
3.0
48.0
3.0
2.4
2.2
46.0
2.0
1.5
44.0
1.0
42.0
40.0
-
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Source: MOSPI, Angel Research
Exhibit 5: Exports and imports growth trends
Exhibit 6: Key policy rates
(%)
Exports yoy growth
Imports yoy growth
(%)
Repo rate
Reverse Repo rate
CRR
60.0
6.50
50.0
6.00
40.0
5.50
30.0
5.00
20.0
4.50
10.0
4.00
0.0
3.50
(10.0)
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
Market Outlook
December 20, 2017
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
6.9
7.0
5.8
6.0
5.3
5.0
5.0
1.1
3.7
4.0
2.5
3.0
2.2
1.8
2.0
1.5
1.4
0.8
1.0
0.3
-
Source: Bloomberg, Angel Research
Exhibit 2: 2017 GDP Growth projection by IMF (%, yoy) across select developing and developed countries
(%)
6.7
6.8
7.0
6.0
5.4
5.2
5.0
3.7
4.0
3.0
1.8
2.2
2.0
1.7
1.6
2.0
0.7
1.5
0.7
1.0
-
Source: IMF, Angel Research
Exhibit 3: One year forward P-E ratio across select developing and developed countries
(x)
25.0
20.0
15.0
10.0
5.0
-
Source: IMF, Angel Research
Market Outlook
December 20, 2017
Exhibit 4: Relative performance of indices across globe
Returns (%)
C ountry
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
73,115
3.2
(2.2)
23.3
Russia
Micex
2,135
(0.5)
3.5
(4.1)
India
Nifty
10,389
1.7
3.1
28.5
China
Shanghai Composite
3,268
(2.6)
(2.6)
2.0
South Africa
Top 40
51,027
(4.1)
3.9
19.8
Mexico
Mexbol
48,635
1.6
(2.9)
8.2
Indonesia
LQ45
1,036
3.4
6.3
19.8
Malaysia
KLCI
1,752
1.7
(1.7)
7.3
Thailand
SET 50
1,118
4.4
7.0
17.7
USA
Dow Jones
24,792
6.5
11.0
24.7
UK
FTSE
7,537
2.0
3.6
7.0
Japan
Nikkei
22,902
4.0
15.3
19.6
Germany
DAX
13,312
2.4
5.9
16.1
France
CAC
5,421
1.8
3.3
11.7
Source: Bloomberg, Angel Research p68in4
Stock Watch
December 20, 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Agri / Agri Chemical
Rallis
Reduce
243
209
4,734
1,873
2,099
15.0
15.0
9.5
10.5
25.6
23.2
3.9
3.5
15.8
16.0
2.4
2.2
United Phosphorus
Accumulate
738
820
37,522
18,922
21,949
18.0
18.5
36.2
45.6
20.4
16.2
4.3
3.5
22.7
23.8
2.1
1.8
Auto & Auto Ancillary
Ashok Leyland
Accumulate
118
127
34,511
23,339
27,240
10.1
10.8
4.7
6.2
25.4
19.0
5.1
4.5
20.0
23.6
1.4
1.2
Bajaj Auto
Neutral
3,320
-
96,067
23,936
27,955
19.5
20.1
142.7
167.3
23.3
19.8
5.1
4.5
21.8
22.8
3.6
3.0
Bharat Forge
Buy
728
875
33,886
7,637
8,755
21.7
23.2
36.1
47.3
20.2
15.4
3.6
3.1
18.5
20.8
4.3
3.7
Eicher Motors
Neutral
30,795
-
83,875
19,043
22,837
19.5
19.9
835.4
1,019.0
36.9
30.2
13.8
10.6
40.9
37.8
4.3
3.5
Gabriel India
Neutral
194
-
2,780
1,782
2,033
9.7
10.2
7.1
8.9
27.3
21.9
5.5
4.7
21.0
22.2
1.5
1.3
Hero Motocorp
Accumulate
3,697
4,129
73,828
32,239
36,878
16.0
15.6
184.4
206.5
20.1
17.9
6.3
5.5
31.3
30.7
2.1
1.8
Jamna Auto Industries Neutral
74
-
2,943
1,441
1,662
14.4
14.8
13.9
17.6
5.3
4.2
1.5
1.2
30.0
31.0
2.0
1.7
Mahindra and Mahindra Neutral
1,555
-
96,627
46,971
53,816
13.6
14.0
67.7
79.8
23.0
19.5
3.3
2.9
15.0
15.9
1.9
1.6
Maruti
Accumulate
9,805
10,784
296,174
79,470
95,208
15.9
17.2
281.7
363.8
34.8
27.0
7.6
6.1
21.7
22.8
3.4
2.7
Minda Industries
Neutral
1,232
-
10,648
4,328
5,084
11.0
11.9
27.3
36.4
45.2
33.9
9.6
7.5
23.1
25.6
2.5
2.2
Motherson Sumi
Neutral
392
-
82,596
55,937
64,445
10.8
11.4
16.9
21.1
23.2
18.6
5.2
5.3
25.2
25.4
1.5
1.3
Tata Motors
Neutral
419
-
121,052
303,167
343,649
11.8
13.8
33.1
54.7
12.7
7.7
2.1
1.7
16.9
23.0
0.5
0.4
TVS Motor
Neutral
785
-
37,309
13,992
16,216
9.0
9.4
17.1
20.3
46.1
38.7
12.2
9.5
29.7
27.7
2.6
2.2
Amara Raja Batteries
Accumulate
807
858
13,788
6,140
7,122
14.3
15.6
29.3
39.0
27.6
20.7
4.7
3.9
17.1
19.0
2.3
1.9
Exide Industries
Neutral
214
-
18,207
8,689
9,854
15.1
15.2
9.7
11.0
22.2
19.5
3.9
3.5
15.7
16.1
1.8
1.6
Apollo Tyres
Neutral
259
-
14,839
15,739
17,326
13.3
14.6
20.4
26.7
12.7
9.7
1.5
1.4
20.4
26.7
1.2
1.1
Ceat
Neutral
1,831
-
7,406
6,661
7,717
11.1
14.2
116.2
178.2
15.8
10.3
2.7
2.3
15.2
21.3
1.2
1.1
JK Tyres
Neutral
141
-
3,203
8,318
9,239
16.2
16.4
21.0
27.5
6.7
5.1
1.3
1.1
19.1
20.4
0.8
0.7
Swaraj Engines
Neutral
2,021
-
2,510
788
889
16.4
16.5
71.6
81.0
28.2
25.0
8.1
7.6
29.6
31.0
2.8
2.5
Subros
Neutral
291
-
1,747
1,855
2,135
11.6
11.8
10.3
14.7
28.4
19.9
4.3
3.7
15.8
19.1
1.2
1.0
Capital Goods
BEML
Neutral
1,587
-
6,610
4,286
5,194
7.1
8.2
42.9
58.1
37.0
27.3
3.0
2.8
7.6
8.7
1.6
1.3
Bharat Electronics
Neutral
184
-
45,233
10,258
12,470
19.6
19.5
7.3
8.6
25.2
21.4
0.5
0.4
20.4
21.9
3.9
3.2
Voltas
Neutral
634
-
20,975
6,778
8,004
9.6
11.0
17.1
22.4
37.1
28.3
8.8
7.8
17.7
19.8
2.8
2.4
BHEL
Neutral
90
-
33,079
33,200
39,167
6.8
9.5
6.2
11.2
14.5
8.0
0.7
0.6
4.6
8.0
0.6
0.4
Blue Star
Accumulate
802
867
7,689
5,220
6,207
6.3
6.6
16.8
22.3
47.7
36.0
9.5
8.4
19.9
23.3
1.4
1.2
CG Power and Industrial
Neutral
87
-
5,459
6,555
7,292
7.5
7.5
-
0.8
8,710.0
108.9
1.4
1.4
0.1
1.2
0.9
0.8
Solutions
Greaves Cotton
Neutral
114
-
2,793
1,778
1,993
14.7
15.1
8.1
9.1
14.1
12.6
3.2
3.0
21.8
23.6
1.3
1.2
Stock Watch
December 20, 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Capital Goods
KEC International
Neutral
369
-
9,483
9,779
11,113
9.4
9.8
14.2
18.2
26.0
20.3
5.0
4.1
21.1
22.1
1.2
1.1
KEI Industries
Buy
360
436
2,818
3,001
3,391
10.0
10.0
13.0
16.1
27.6
22.3
5.0
4.2
18.2
18.7
1.1
1.0
Thermax
Neutral
1,200
-
14,304
4,125
4,747
10.3
10.8
26.7
31.5
45.0
38.1
5.0
4.6
11.2
12.0
3.2
2.8
VATech Wabag
Accumulate
605
681
3,304
3,867
4,126
9.6
10.0
34.9
39.8
17.3
15.2
2.9
2.5
17.7
17.5
0.9
0.8
Cement
ACC
Neutral
1,728
-
32,454
12,255
13,350
13.5
14.3
58.0
66.2
29.8
26.1
3.5
3.3
11.5
12.2
2.6
2.4
Ambuja Cements
Neutral
270
-
53,602
10,250
11,450
17.5
19.0
7.2
8.3
37.5
32.5
2.7
2.5
7.0
7.8
5.0
4.4
India Cements
Neutral
171
-
5,282
6,135
6,750
14.8
15.2
8.5
11.5
20.2
14.9
1.0
1.0
4.8
6.2
1.2
1.1
JK Cement
Neutral
1,071
-
7,489
4,150
4,775
19.2
20.0
49.0
63.5
21.9
16.9
3.5
3.0
17.0
18.5
2.2
1.9
J K Lakshmi Cement
Neutral
439
-
5,162
3,422
3,757
15.5
17.0
13.5
23.2
32.5
18.9
3.4
2.9
10.8
15.5
1.9
1.7
Orient Cement
Neutral
164
-
3,359
2,215
3,233
16.8
17.0
5.9
6.9
27.8
23.8
2.1
2.0
10.8
10.1
2.5
1.7
UltraTech Cement
Neutral
4,361
-
119,735
28,250
35,150
20.2
23.5
77.5
122.2
56.3
35.7
4.7
4.3
9.6
14.8
4.7
3.8
Construction
KNR Constructions
Neutral
277
-
3,893
1,846
2,203
14.5
14.5
12.1
13.7
22.9
20.3
1.3
1.1
17.5
16.7
2.2
1.8
Larsen & Toubro
Neutral
1,217
-
170,548
95,787
109,476
10.2
11.6
44.5
50.8
27.4
24.0
3.4
3.2
12.9
13.1
2.3
2.1
Gujarat Pipavav Port
Neutral
135
-
6,546
739
842
61.6
62.7
5.1
6.2
26.6
22.0
3.3
3.2
12.7
14.9
8.3
7.2
PNC Infratech
Neutral
189
-
4,838
2,040
2,935
13.0
13.0
6.4
9.0
29.5
21.0
0.8
0.7
9.7
12.2
2.4
1.7
Simplex Infra
Neutral
567
-
2,805
6,012
6,619
11.6
11.7
21.1
31.0
26.9
18.3
1.9
1.7
6.5
8.6
1.0
0.9
Sadbhav Engineering
Neutral
367
-
6,298
3,823
4,426
10.7
10.8
10.3
11.8
35.6
31.1
4.3
3.8
10.1
10.5
2.0
1.7
NBCC
Neutral
252
-
22,698
9,099
12,706
6.4
6.4
7.3
9.6
34.6
26.4
1.5
1.2
27.5
30.5
2.4
1.7
MEP Infra
Neutral
92
-
1,488
2,403
2,910
18.3
16.8
2.4
6.1
38.9
15.1
14.8
10.0
35.2
55.8
1.8
1.5
SIPL
Neutral
145
-
5,102
2,060
2,390
46.8
47.7
(5.8)
(3.1)
5.4
6.2
(14.2)
(2.3)
7.2
6.7
Engineers India
Neutral
191
-
12,874
1,795
2,611
21.1
22.4
5.9
8.1
32.4
23.6
2.3
2.2
12.9
16.1
5.6
3.7
Financials
Axis Bank
Neutral
553
-
132,604
32,558
35,843
3.5
3.2
27.8
41.0
19.9
13.5
2.2
1.9
11.4
14.9
-
-
Bank of Baroda
Neutral
168
-
38,779
22,533
26,079
2.4
2.4
12.0
20.9
14.0
8.1
0.9
0.9
6.6
11.0
-
-
Canara Bank
Neutral
371
-
22,145
17,925
20,235
2.0
2.1
18.5
36.5
20.0
10.2
0.8
0.7
3.4
6.2
-
-
Can Fin Homes
Neutral
480
-
6,394
586
741
3.5
3.5
107.8
141.0
4.5
3.4
1.0
0.8
24.1
25.6
-
-
Cholamandalam Inv. &
Neutral
1,288
-
20,132
2,826
3,307
6.3
6.3
53.7
64.6
24.0
20.0
4.1
3.5
18.3
18.9
-
-
Fin. Co.
Dewan Housing Finance Buy
610
712
19,121
2,676
3,383
2.4
2.7
37.4
49.7
16.3
12.3
2.1
1.9
13.8
16.2
-
-
Equitas Holdings
Buy
141
235
4,784
1,125
1,380
9.6
9.8
1.5
6.0
93.9
23.5
2.1
2.0
2.4
8.2
-
-
Federal Bank
Accumulate
110
125
21,520
4,896
5,930
2.8
3.1
5.4
7.6
20.4
14.5
1.7
1.6
8.5
11.0
-
-
Stock Watch
December 20, 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Financials
GIC Housing
Buy
412
655
2,216
376
477
3.6
3.7
33.0
40.0
12.5
10.3
2.2
1.9
20.0
23.0
-
-
HDFC Bank
Neutral
1,885
-
487,850
55,236
63,253
4.5
4.4
68.9
82.4
27.4
22.9
4.8
4.0
18.7
18.5
-
-
ICICI Bank
Neutral
314
-
201,379
42,361
51,378
3.6
3.9
18.4
25.7
17.1
12.2
1.9
1.8
11.3
15.0
-
-
Karur Vysya Bank
Buy
117
180
8,443
3,289
3,630
3.7
3.9
10.8
14.1
10.8
8.3
1.3
1.2
12.5
14.7
-
-
LIC Housing Finance
Accumulate
565
630
28,513
4,895
6,332
3.4
3.7
50.7
66.8
11.1
8.5
2.2
1.8
21.7
23.8
-
-
Punjab Natl.Bank
Neutral
178
-
37,952
23,708
25,758
2.1
2.1
5.9
16.4
30.3
10.9
0.9
0.9
3.0
8.3
-
-
RBL Bank
Neutral
518
-
21,563
2,309
2,888
2.6
2.5
16.4
19.1
31.6
27.1
4.0
3.5
13.3
13.8
-
-
Repco Home Finance
Buy
671
825
4,195
496
597
4.4
4.2
38.5
48.7
17.4
13.8
3.1
2.6
19.6
20.6
-
-
South Ind.Bank
Neutral
32
-
5,760
3,195
3,567
3.0
3.1
3.0
3.8
10.6
8.3
1.1
0.9
10.5
11.9
-
-
St Bk of India
Neutral
319
-
275,751
105,827
121,056
2.4
2.5
16.1
25.6
19.9
12.5
1.6
1.4
6.6
9.9
-
-
Union Bank
Neutral
151
-
10,958
14,650
16,225
2.3
2.3
23.1
32.5
6.5
4.6
0.5
0.5
7.1
9.2
-
-
Yes Bank
Neutral
312
-
71,777
11,088
13,138
3.0
2.9
84.0
99.3
3.7
3.2
0.6
0.5
16.3
16.8
-
-
FMCG
Akzo Nobel India
Neutral
1,819
-
8,724
3,164
3,607
13.8
13.7
58.6
67.9
31.1
26.8
7.6
6.7
24.5
25.1
2.6
2.3
Asian Paints
Neutral
1,137
-
109,032
17,603
20,615
18.6
18.6
2,128.9
2,543.3
0.5
0.5
11.3
9.5
28.0
28.9
6.0
5.0
Britannia
Neutral
4,752
-
57,052
9,690
11,278
14.8
15.4
84.0
101.0
56.6
47.1
20.6
16.4
40.6
39.0
5.9
5.0
Colgate
Neutral
1,073
-
29,170
4,420
5,074
24.9
25.3
28.6
32.8
37.5
32.7
14.8
11.9
43.8
40.5
6.3
5.5
Dabur India
Neutral
350
-
61,636
8,346
9,344
19.6
19.9
7.8
9.0
44.9
38.9
9.0
8.2
25.2
24.8
7.0
6.2
GlaxoSmith Con*
Neutral
6,548
-
27,539
5,072
5,760
18.2
18.4
176.3
199.2
37.1
32.9
7.9
7.1
21.2
21.7
4.8
4.1
Godrej Consumer
Neutral
991
-
67,533
10,171
11,682
20.8
21.5
21.7
27.1
45.7
36.6
10.3
8.8
22.3
23.4
6.8
5.8
HUL
Neutral
1,348
-
291,707
37,077
41,508
20.3
21.8
5,189.9
6,318.5
0.3
0.2
41.1
35.1
74.8
82.0
7.7
6.9
ITC
Neutral
265
-
322,500
44,588
49,853
37.0
37.3
9.6
11.0
27.6
24.1
6.8
6.4
25.1
27.3
6.7
6.0
Marico
Neutral
313
-
40,337
6,788
7,766
18.5
19.2
7.1
8.5
44.0
36.8
15.4
13.2
36.9
38.0
5.8
5.0
Nestle*
Neutral
7,903
-
76,201
10,083
11,182
20.0
20.9
119.7
141.3
66.0
55.9
232.7
212.7
36.7
39.8
7.2
6.5
Tata Global
Neutral
301
-
18,975
7,121
7,641
11.9
12.3
6.9
8.0
43.6
37.6
2.9
2.8
6.8
7.2
2.5
2.3
Procter & Gamble
Neutral
9,423
-
30,589
3,034
3,579
27.1
27.7
167.7
198.8
56.2
47.4
15.1
13.0
28.8
29.5
9.5
8.0
Hygiene
IT
HCL Tech^
Buy
870
1,014
124,112
50,009
54,608
22.1
22.1
62.8
67.6
13.9
12.9
3.1
2.7
22.4
20.6
2.1
1.8
Infosys
Accumulate
1,005
1,120
230,802
70,333
75,960
26.0
26.0
61.7
65.9
16.3
15.3
3.1
2.9
18.9
18.7
2.7
2.4
TCS
Reduce
2,575
2,442
492,939
123,384
134,488
26.1
26.1
133.2
143.7
19.3
17.9
5.3
5.0
27.6
27.8
3.7
3.3
Tech Mahindra
Accumulate
495
526
48,347
30,545
32,988
15.0
15.0
35.2
37.6
14.1
13.2
2.4
2.2
16.8
16.2
1.4
1.2
Stock Watch
December 20, 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
IT
Wipro
Neutral
292
-
142,180
54,164
56,544
22.3
22.3
18.8
19.5
15.5
15.0
2.5
2.2
15.0
13.6
1.9
1.6
Media
D B Corp
Neutral
345
-
6,347
2,404
2,625
30.5
31.5
23.7
26.9
14.6
12.8
3.4
2.9
23.5
22.8
2.5
2.3
HT Media
Neutral
97
-
2,255
2,589
2,830
15.1
15.4
8.3
10.9
11.7
8.9
0.9
0.9
8.4
10.4
0.4
0.3
Jagran Prakashan
Buy
164
225
5,101
2,541
2,835
28.5
28.7
12.7
14.1
12.9
11.6
2.7
2.3
21.3
21.4
1.9
1.6
Sun TV Network
Neutral
942
-
37,119
3,238
3,789
51.9
55.1
30.9
38.0
30.5
24.8
8.7
7.6
30.0
31.0
11.0
9.3
Hindustan Media
Neutral
238
-
1,743
1,002
1,074
23.3
23.5
29.2
33.8
8.1
7.0
1.3
1.1
15.6
15.4
0.7
0.5
Ventures
TV Today Network
Accumulate
404
435
2,413
667
727
27.7
27.7
18.6
20.1
21.8
20.2
3.4
3.5
15.6
17.3
3.1
2.9
Music Broadcast Limited Buy
376
434
2,142
271
317
91.0
109.0
6.0
10.0
62.6
37.6
3.9
3.6
6.5
9.3
7.5
6.2
Metals & Mining
Coal India
Neutral
268
-
166,110
82,301
91,235
17.0
18.0
17.1
20.5
15.7
13.1
2.9
2.8
45.0
55.0
1.7
1.5
Hind. Zinc
Neutral
302
-
127,731
22,108
24,555
57.0
58.0
22.1
26.3
13.7
11.5
4.4
3.6
32.0
35.0
4.8
4.0
Hindalco
Neutral
254
-
56,942
102,350
105,355
13.5
14.5
21.5
24.5
11.8
10.4
1.6
1.4
15.0
15.2
1.1
1.1
JSW Steel
Neutral
257
-
62,123
64,500
68,245
21.1
21.5
20.1
21.2
12.8
12.1
2.3
2.0
-
-
1.7
1.6
NMDC
Neutral
135
-
42,823
10,209
11,450
47.0
48.0
11.1
12.1
12.2
11.2
1.7
1.6
-
-
3.7
3.4
SAIL
Neutral
83
-
34,362
54,100
63,555
3.0
10.0
(10.0)
1.5
55.5
1.1
1.1
-
-
1.6
1.4
Vedanta
Neutral
316
-
117,556
81,206
87,345
28.0
29.0
26.5
33.5
11.9
9.4
2.7
2.3
-
-
2.2
1.9
Tata Steel
Neutral
710
-
68,985
121,445
126,500
16.2
17.2
65.4
81.3
10.9
8.7
1.7
1.5
-
-
1.1
1.0
Oil & Gas
GAIL
Neutral
497
-
83,999
53,115
52,344
14.2
15.3
30.0
31.1
16.6
16.0
2.1
1.9
-
-
1.3
1.3
ONGC
Neutral
185
-
237,672
83,111
84,934
44.2
44.9
16.4
16.9
11.3
11.0
1.4
1.3
-
-
2.7
2.7
Indian Oil Corp
Neutral
410
-
199,044
396,116
432,560
8.5
8.8
40.1
42.2
10.2
9.7
1.8
1.6
-
-
0.6
0.6
Reliance Industries
Neutral
924
-
600,951
257,711
267,438
17.0
18.2
89.1
89.5
10.4
10.3
1.0
0.9
-
-
2.0
1.9
Pharmaceuticals
Alembic Pharma
Accumulate
528
600
9,953
3,346
3,915
19.6
19.2
21.0
23.9
25.1
22.1
4.4
3.8
19.1
18.4
3.0
2.6
Alkem Laboratories Ltd
Accumulate
2,185
2,341
26,122
6,320
7,341
17.5
19.8
72.7
96.6
30.1
22.6
5.3
4.5
16.7
18.7
4.1
3.4
Aurobindo Pharma
Buy
685
823
40,107
17,086
19,478
22.1
22.0
44.7
51.4
15.3
13.3
3.4
2.7
24.7
22.7
2.5
2.1
Aventis*
Neutral
4,695
-
10,813
2,411
2,698
18.8
18.8
151.6
163.9
31.0
28.7
4.8
3.9
25.4
27.5
4.1
3.4
Cadila Healthcare
Neutral
418
-
42,823
11,365
12,926
20.0
20.0
18.4
20.5
22.7
20.4
5.0
4.1
24.3
22.2
3.9
3.3
Cipla
Sell
602
462
48,474
16,163
18,711
16.6
16.9
20.7
24.3
29.1
24.8
3.5
3.1
12.6
13.1
3.1
2.7
Dr Reddy's
Reduce
2,400
2,040
39,790
13,734
15,548
17.7
20.2
69.9
102.0
34.3
23.5
3.1
2.8
9.2
12.4
3.1
2.7
GSK Pharma*
Sell
2,436
2,000
20,631
2,968
3,324
13.8
15.9
37.8
46.3
64.4
52.6
11.3
12.4
16.7
22.4
6.8
6.2
Indoco Remedies
Sell
290
136
2,675
1,114
1,297
9.9
13.9
5.6
11.4
51.8
25.5
3.9
3.5
7.7
14.5
2.7
2.3
Stock Watch
December 20, 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Pharmaceuticals
Ipca labs
Neutral
567
-
7,153
3,256
3,647
14.1
17.1
16.2
25.4
35.0
22.3
2.7
2.4
8.0
11.5
2.3
2.0
Lupin
Buy
867
1,091
39,178
16,240
18,562
21.3
21.7
42.5
49.6
20.4
17.5
2.6
2.3
13.3
13.7
2.5
2.1
Natco Pharma
Accumulate
983
1,057
17,152
1,886
2,016
32.3
29.5
23.2
22.0
42.5
44.6
8.9
7.9
20.9
17.6
8.9
8.3
Sun Pharma
Buy
528
615
126,692
28,312
31,826
20.7
22.4
18.5
22.3
28.5
23.7
3.3
2.9
11.5
14.0
4.1
3.5
Syngene International
Accumulate
537
587
10,749
1,394
1,818
33.0
36.5
15.8
21.0
34.0
25.6
6.3
5.2
18.6
20.3
7.7
5.9
Power
Tata Power
Neutral
91
-
24,640
32,547
33,806
20.5
20.5
4.7
5.4
19.4
17.0
1.8
1.6
10.5
10.5
1.7
1.7
NTPC
Neutral
180
-
148,501
86,070
101,246
28.3
30.7
12.9
16.2
14.0
11.1
1.4
1.3
10.6
12.4
3.1
2.8
Power Grid
Accumulate
203
223
106,070
29,183
32,946
89.7
90.0
18.0
20.8
11.3
9.8
1.9
1.7
17.7
18.2
7.6
7.0
Real Estate
Prestige Estate
Neutral
300
-
11,259
4,607
5,146
21.0
22.2
7.9
9.8
38.0
30.6
2.3
2.2
10.3
12.0
3.6
3.3
MLIFE
Accumulate
472
522
2,422
487
590
12.3
17.8
21.0
31.2
22.5
15.1
1.2
1.1
5.2
7.4
3.7
3.0
Telecom
Bharti Airtel
Neutral
536
-
214,421
97,903
105,233
36.0
36.3
9.3
11.1
57.7
48.5
2.8
2.6
5.0
5.6
3.1
2.9
Idea Cellular
Neutral
98
-
35,497
35,012
37,689
27.1
27.7
(4.4)
(2.7)
1.5
1.6
(6.8)
(4.6)
2.3
2.1
zOthers
Abbott India
Neutral
5,404
-
11,484
3,244
3,723
14.9
16.1
167.5
209.4
32.3
25.8
7.1
5.9
23.7
24.8
3.2
2.7
Asian Granito
Accumulate
526
570
1,582
1,169
1,286
12.5
12.5
16.0
19.7
32.9
26.7
3.5
3.1
10.7
11.6
1.6
1.4
Bajaj Electricals
Neutral
477
-
4,854
4,646
5,301
6.7
7.6
16.1
22.3
29.7
21.4
4.8
4.1
16.4
19.2
1.0
0.9
Banco Products (India)
Neutral
253
-
1,807
1,530
1,695
13.2
12.7
19.0
20.0
13.3
12.6
2.1
1.9
0.2
0.2
1.1
122.0
Coffee Day Enterprises
Neutral
282
-
5,810
3,494
3,913
17.4
18.0
4.8
5.7
-
49.5
2.5
2.4
-
0.1
2.1
1.9
Ltd
Elecon Engineering
Neutral
95
-
1,065
171
201
15.0
16.2
36.0
43.0
2.6
2.2
0.2
0.2
0.1
0.1
5.6
4.8
Garware Wall Ropes
Neutral
930
-
2,035
928
1,003
15.2
15.2
39.4
43.2
23.6
21.5
3.9
3.3
16.5
15.4
2.1
1.8
Goodyear India*
Neutral
896
-
2,066
1,717
1,866
11.8
12.3
47.9
49.8
18.7
18.0
2.9
2.5
15.6
15.7
0.9
128.8
Hitachi
Neutral
2,570
-
6,988
2,355
2,715
10.3
10.8
49.0
60.9
52.5
42.2
12.3
9.7
0.2
0.2
3.0
2.6
HSIL
Neutral
532
-
3,847
2,240
2,670
14.6
15.0
17.0
22.0
31.3
24.2
2.6
2.4
0.1
0.1
1.9
1.6
Interglobe Aviation
Neutral
1,158
-
44,492
22,570
27,955
14.2
15.0
63.6
81.8
18.2
14.2
9.6
8.1
0.5
0.6
1.7
1.3
Jyothy Laboratories
Neutral
390
-
7,096
1,781
2,044
14.1
15.0
9.4
10.5
41.8
37.2
8.9
8.3
0.2
0.2
4.2
3.6
Linc Pen & Plastics
Neutral
342
-
506
420
462
9.3
9.3
15.3
17.1
22.4
20.0
3.8
3.9
16.9
19.5
1.3
1.1
M M Forgings
Neutral
1,092
-
1,318
542
642
20.1
21.0
41.6
56.8
26.3
19.2
3.6
3.1
0.1
0.2
2.8
2.5
Mirza International
Neutral
160
-
1,924
1,148
1,285
18.0
18.0
8.0
9.4
19.9
17.1
3.3
2.8
16.3
16.1
1.8
1.6
Navkar Corporation
Buy
189
265
2,849
561
617
41.5
41.5
11.5
12.7
16.4
14.9
1.7
1.6
10.5
10.4
5.7
5.0
Nilkamal
Neutral
1,839
-
2,745
2,317
2,525
11.4
11.1
96.0
105.0
19.2
17.5
3.3
2.8
0.2
0.2
1.2
1.0
Stock Watch
December 20, 2017
Company Name
Reco
CMP
Target Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E
zOthers
Parag Milk Foods
Neutral
300
-
2,523
1,987
2,379
7.6
9.0
12.4
18.3
24.2
16.4
3.4
3.0
8.2
13.2
1.4
1.2
Radico Khaitan
Neutral
279
-
3,720
1,811
1,992
13.2
13.2
8.1
8.8
34.5
31.7
3.5
3.8
10.1
12.0
2.4
2.2
Relaxo Footwears
Neutral
703
-
8,466
1,981
2,310
13.7
14.5
12.0
15.5
58.6
45.4
11.4
9.2
0.2
0.2
4.3
3.7
Siyaram Silk Mills
Accumulate
753
800
3,531
1,769
1,981
12.7
12.7
22.6
26.2
33.3
28.7
5.2
4.5
15.5
15.5
2.2
1.9
Styrolution ABS India* Neutral
1,067
-
1,876
1,800
1,980
8.0
8.1
42.0
46.2
25.4
23.1
2.9
2.5
0.1
0.1
1.2
1.1
Surya Roshni
Neutral
385
-
1,686
4,870
5,320
7.7
7.8
22.8
28.1
16.9
13.7
2.2
1.9
0.1
0.1
0.6
0.5
TVS Srichakra
Neutral
3,370
-
2,580
2,729
2,893
12.7
12.5
248.5
265.0
13.6
12.7
3.9
3.1
0.3
0.3
0.9
0.9
Visaka Industries
Neutral
641
-
1,018
1,104
1,214
12.1
12.6
31.0
37.9
20.7
16.9
2.5
2.3
0.1
0.1
1.2
1.0
VIP Industries
Accumulate
359
400
5,080
1,450
1,693
10.4
10.5
6.5
7.8
54.9
46.0
11.6
10.2
21.1
22.1
3.5
3.0
Navin Fluorine
Neutral
732
-
3,610
945
1,154
17.5
17.9
28.7
34.8
25.5
21.0
4.2
3.6
-
-
3.3
2.6
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on December 19, 2017
Market Outlook
December 20, 2017
Research Team Tel: 022 - 39357800
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