Market Outlook
October 24, 2016
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open sideways tracking Asian markets and SGX Nifty.
BSE Sensex
(0.2)
(53)
28,077
Nifty
(0.1)
(6)
8,693
U.S. stocks closed mildly positive on Friday, as the latest batch of earnings results
came in. Microsoft closed 4.3% higher after the company announced results that
Mid Cap
0.3
42
13,602
exceeded forecasts. Natural gas stocks moved lower due to pressure on commodity
Small Cap
0.1
13
13,432
prices and a weaker than expected result by Southwestern Energy.
Bankex
0.2
43
22,585
UK’s FTSE 100 closed slightly higher in a choppy trading session as investors
awaited for the outcome of the Brexit negotiations. Mining company BHP Billiton
Global Indices
Chg (%)
(Pts)
(Close)
rose around half a percent after Jac Nasser, the chairman announced his
Dow Jones
(0.1)
(17)
18,146
resignation. Royal Dutch Shell was down about half a percent due to lower oil prices
and an announcement that Shell would be selling their non-core oil and gas assets
Nasdaq
0.3
16
5,257
in Canada to Tourmaline Oil.
FTSE
(0.1)
(6)
7,020
Indian stocks closed slightly lower on Friday. The IT index closed 1% higher on an
Nikkei
(0.3)
(51)
17,185
earnings beat by HCL and an inline result by Wipro. Reliance Industries fell by over
Hang Seng
0.3
69
23,374
2% despite posting better than expected quarterly results.
Shanghai Com
0.2
6
3,091
Result Review
Advances / Declines
BSE
NSE
Result Review: Wipro, HCL Tech
Advances
1,461
840
Detailed analysis on Pg2
Declines
1,341
804
Investor’s Ready Reckoner
Unchanged
237
72
Key Domestic & Global Indicators
Volumes (` Cr)
Stock Watch: Latest investment recommendations on 150+ stocks
Refer Pg6 onwards
BSE
3,201
NSE
20,237
Top Picks
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
Net Inflows (` Cr)
Net
Mtd
Ytd
Amara Raja Batteries Auto & Auto Ancill.
Buy
1,025
1,218
18.8
FII
341
(382)
49,623
HCL Tech
IT
Buy
831
1,000
20.3
MFs
647
4,761
18,707
Bharat Electronics
Capital Goods
Accumulate
1,264
1,414
11.9
Equitas Holdings
Financials
Buy
183
235
28.2
Navkar Corporation Others
Buy
199
265
33.0
Top Gainers
Price (`)
Chg (%)
More Top Picks on Pg5
Ncc
92
12.0
Il&Fstrans
112
10.0
Key Upcoming Events
Previous
Consensus
Tatacomm
679
5.9
Date
Region
Event Description
Reading
Expectations
Unitech
6
5.7
Oct 24 Germany
PMI Services
50.90
--
Oct 24 US
New home sales
609.0
600.0
Bajajelec
265
4.1
Oct 25 Germany
PMI Manufacturing
54.3
--
Oct 26 US
Consumer Confidence
104.1
101.5
Top Losers
Price (`)
Chg (%)
Oct 27 US
GDP QoQ (Annualised)
1.4
2.5
Kajariacer
617
(6.7)
Oct 27 US
Initial Jobless claims
260.0
--
Network18
43
(3.3)
Oct 28 UK
GDP (YoY)
2.1
2.1
Acc
1,562
(3.1)
Oct 31 Euro Zone
Euro Zone GDO s.a (QoQ)
0.3
--
6.(
More Events on Pg6
Edelweiss
123
(3.1)
Iifl
279
(2.7)
As on October 21, 2016
Market Outlook
October 24, 2016
Result Review
Wipro (CMP: `499 / TP: `680 /Upside: 36.3%)
Wipro, announced results lower than expected on the US$ IT services sales terms,
while on EBIT margins and Net profit, it came in higher than expected. The sales
front, the company posted 0.8% sequential de-growth in its USD IT Services
revenues to US$1,916mn V/s US$1,921mn expected v/s US$1,931mn in
1QFY2017. In Constant Currency (CC) the qoq growth of 0.9%. In rupee terms,
the consolidated revenues are expected to come in at `13,765cr V/s `13,428cr
expected, up 1.3% qoq.
In terms of verticals, the Healthcare, Life Sciences & Services, posted a CC qoq
growth of 4.3%., while in terms of geography it was US, which posted a CC qoq
growth of 1.8%. EBIT margin, came in at 16.7% V/s 15.1% expected, an
expansion of 52bps qoq. Consequently, PAT came in at `2,074cr V/s `1,968cr
expected, a growth of 1.1% qoq.
On operational front, gross utilization came in at 71.2% in 3QFY2017 V/s 69.9%
in 2QFY2017, while on attrition came in at 16.6% V/s 16.5% in 2QFY2017.
On guidance front, the company expects to post IT Services sales of
US$ 1,931-1,950mn in 3QFY2017. We maintain our buy rating on the stock.
Y/E
Sales OPM
PAT
EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
51,631
21.7
8,887
35.9
19.0
13.9
2.6
8.9
1.9
FY2018E
55,822
17.9
9,115
36.9
18.1
13.5
2.7
7.6
1.6
HCL Tech (CMP: `815 / TP: `1,000 /Upside: 22.7%)
HCL Tech announced its results more or less in line with expectations. The
company posted a 1.9% sequential growth in USD revenues to US$1,722mn V/s
US$1,726mn expected and V/s US$1,691mn in 1QFY2017. In rupee terms, the
revenues came in at `11,519cr V/s `11,548cr expected, up 1.6% qoq.
In terms of verticals, the CC qoq growth was driven by: Life sciences & Healthcare
at 8.2%, Retail & CPG at 7.7%, Financial Services at 5.6%, Public Services at -
3.7%, Telecommunications and Media, Publishing & Entertainment at 6.1%. In
USA posted a CC qoq growth of 5.5%, ROW posted a CC qoq growth of 2.0%
and Europe posted a CC qoq de-growth of 2.1%.
Strong client addition continues: $1+ Mn clients up by 8, $10+ Mn clients up by
13, $20+ Mn clients up by 7, $40+ Mn clients up by 10, $50+ Mn clients up by
2, and $100+ Mn clients up by 1 (on yoy basis).
On employee front, attrition in IT services (LTM) 18.6%, while the blended
utilization rate came in at 85.3% V/s 85.8% in 1QFY2017. EBIT margins came in
at 20.1% V/s 20.0% expected a dip of ~46bp qoq. Consequently, PAT came in at
`2,014cr V/s `1,979cr, a dip of 1.6% qoq.
For FY2017, the company gave a revenue growth guidance.FY’2017 revenues are
expected to grow between 12.0-14.0% in CC. The above constant currency
guidance terms which translates to into an 11.2% to 13.2% growth in US$ terms.
Market Outlook
October 24, 2016
The operating margin (EBIT) for FY’2017 is expected to be in the range is from
19.5% to 20.5%.
We maintain our buy rating on the stock.
Y/E
Sales OPM
PAT
EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
49,242
20.5
7,862
55.7
20.3
14.9
3.0
9.2
1.9
FY2018E
57,168
20.5
9,037
64.1
17.9
13.0
2.3
7.0
1.4
Economic and Political News
FIPB to look at 19 investment proposals this week
Morocco and India announce joint venture to build fertiliser plant worth $230
mln in Andhra Pradesh
Centre signs agreement with World Bank towards third tranche in construction
of Eastern Freight corridor
Corporate News
Apollo Tyres to setup plant in Hungary for 475 mln Euro
Aditya Birla Group pledges to invest `20,000cr in Madhya Pradesh across
sectors like retail, telecom and cement
NTPC to cross 50,000MW in power generation capacity by March end 2017
Quarterly Bloomberg Brokers Consensus Estimate
Axis Bank Ltd Consol - Oct 24, 2016
Particulars ( ` cr)
2QFY17E
2QFY16
y-o-y (%)
1QFY17 q-o-q (%)
PAT
1,998
1,916
4.3
1,556
28.5
Reliance Capital Ltd Consol - Oct 24, 2016
Particulars ( ` cr)
2QFY17E
2QFY16
y-o-y (%)
1QFY17 q-o-q (%)
PAT
259
250
3.7
207
25.3
Idea Cellular Ltd Consol - Oct 24, 2016
Particulars ( ` cr)
2QFY17E
2QFY16
y-o-y (%)
1QFY17 q-o-q (%)
Net sales
9,763
8,677
12.5
9,484
2.9
EBITDA
3,579
3,057
17.1
3,074
16.4
EBITDA margin (%)
36.7
35.2
32.4
Net profit
445
809
(45.1)
217
104.8
HDFC Bank Ltd - Oct 25, 2016
Particulars ( ` cr)
2QFY17E
2QFY16
y-o-y (%)
1QFY17 q-o-q (%)
PAT
3,254
2,869
13.4
3,239
0.5
Market Outlook
October 24, 2016
Kotak Mahindra Bank Ltd - Oct 25, 2016
Particulars ( ` cr)
2QFY17E
2QFY16
y-o-y (%)
1QFY17 q-o-q (%)
PAT
740
570
29.9
742
(0.3)
Dr Reddy Laboratories Ltd Consol - Oct 25, 2016
Particulars ( ` cr)
2QFY17E
2QFY16
y-o-y (%)
1QFY17 q-o-q (%)
Net sales
3,841
3,989
(3.7)
3,235
18.7
EBITDA
870
1,086
(19.9)
387
125.0
EBITDA margin (%)
22.7
27.2
12.0
Net profit
480
722
(33.5)
154
212.9
Asian Paints Ltd Consol - Oct 25, 2016
Particulars ( ` cr)
2QFY17E
2QFY16
y-o-y (%)
1QFY17 q-o-q (%)
Net sales
4,010
3,731
7.5
3,590
11.7
EBITDA
785
621
26.4
820
(4.3)
EBITDA margin (%)
19.6
16.6
22.8
Net profit
522
399
30.7
535
(2.5)
Mahindra & Mahindra Financial Services Ltd - Oct 25, 2016
Particulars ( ` cr)
2QFY17E
2QFY16
y-o-y (%)
1QFY17 q-o-q (%)
PAT
128
146
(12.2)
87
47.6
Federal Bank Ltd - Oct 25, 2016
Particulars ( ` cr)
2QFY17E
2QFY16
y-o-y (%)
1QFY17 q-o-q (%)
PAT
159
161
(1.5)
167
(5.1)
Market Outlook
October 24, 2016
Top Picks ★★★★★
Large Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
To outpace battery industry growth due to better technological
Amara Raja Batteries
17,509
1,025
1,218
18.8
products leading to market share gains in both the
automotive OEM and replacement segments.
Healthy pace of branch expansion, backed by distribution
Axis Bank
1,25,687
527
630
19.6
network, will be the driving force for the bank’s retail business
and overall earnings.
Uptick in defense capex by government when coupled with
Bharat Electronics
30,338
1,264
1,414
11.9
BELs strong market positioning, indicate that good times are
ahead for BEL.
The stock is trading at attractive valuations and is factoring all
HCL Tech
1,17,241
831
1,000
20.3
the bad news.
Back on the growth trend, expect a long term growth of 14%
Infosys
2,38,446
1,038
1,249
20.3
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
837
278
351
26.2
owing to better product mix, higher B2C sales and
amalgamation synergy.
Among the top 4 players in the consumer durables segment.
Bajaj Electricals
2,653
263
306
16.6
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
5,161
541
634
17.1
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
9,682
332
350
5.5
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
6,147
183
235
28.2
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
6,707
205
225
9.7
radio business (Radio City) would also boost the company's
revenue growth.
Speedier execution and speedier sales, strong revenue visibilty
Mahindra Lifespace
1,797
438
522
19.2
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
1,150
96
113
18.3
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
2,842
199
265
33.0
as well CFS augurs well for the company.
Strong brands and distribution network would boost growth
Siyaram Silk Mills
1,421
1,516
1,714
13.1
going ahead. Stock currently trades at an inexpensive
valuation.
Market leadership in Hindi news genre and no. 2 viewership
ranking in English news genre, exit from the radio business,
TV Today Network
1,977
331
363
9.5
and anticipated growth in ad spends by corporates to benefit
the stock.
Source: Company, Angel Research
Market Outlook
October 24, 2016
Key Upcoming Events
Result Calendar
Date
Company
October 24, 2016 Rallis, Axis Bank, Reliance Capital, Adani Power
HDFC Bank, Kotak Mah. Bank, Shriram Trans., IDBI Bank, Federal Bank, Asian Paints, Hexaware, Jyothy
October 25, 2016
Laboratories, Visaka Industries, Dr Reddy's, Alembic Pharma
Hero Motocorp, Exide Industries, Cummins India, LMW, J K Lakshmi Cements, HDFC, Canara Bank,
October 26, 2016
Syndicate Bank, ITC, HUL, Dabur India, Cadila Healthcare, Indoco Remedies
Maruti, TVS Motor, ABB, Tech Mahindra, PVR, JSW Steel , ONGC, IOC, MRF, GSK Pharma, Glenmark
October 27, 2016
Pharma., Dishman Pharma, VRL Logistics
October 28, 2016 United Phosphorus, Bajaj Auto, Subros, IDFC, Nestle, Colgate, Sesa Goa, NTPC
Source: Bloomberg, Angel Research
Global economic events release calendar
Bloomberg Data
Date
Time
Country Event Description
Unit
Period
Last Reported Estimated
Oct 24, 2016
1:00 PM Germany PMI Services
Value
Oct P
50.90
51.50
7:30 PM US
Consumer Confidence
S.A./ 1985=100 Oct
104.10
101.00
Oct 25, 2016
1:00 PM Germany PMI Manufacturing
Value
Oct P
54.30
54.30
Oct 26, 2016
7:30 PM US
New home sales
Thousands
Sep
609.00
601.50
Oct 27, 2016
6:00 PM US
GDP Qoq (Annualised)
% Change 3Q A
1.40
2.50
6:00 PM US
Initial Jobless claims
Thousands Oct 22
260.00
Oct 28, 2016
2:00 PM UK
GDP (YoY)
% Change 3Q A
2.10
2.10
Oct 31, 2016
3:30 PM Euro Zone Euro-Zone GDP s.a. (QoQ)
% Change 3Q A
0.30
Nov 01, 2016
3:00 PM UK
PMI Manufacturing
Value
Oct
55.40
6:30 AM China
PMI Manufacturing
Value
Oct
50.40
50.40
Nov 02, 2016
2:25 PM Germany Unemployment change (000's)
Thousands
Oct
1.00
11:30 PM US
FOMC rate decision
%
Nov 2
0.50
0.50
Nov 03, 2016
5:30 PM UK
BOE Announces rates
% Ratio
Nov 3
0.25
Nov 04, 2016
6:00 PM US
Change in Nonfarm payrolls
Thousands
Oct
156.00
150.00
6:00 PM US
Unnemployment rate
%
Oct
5.00
4.90
Nov 08, 2016
China
Exports YoY%
% Change
Oct
(10.00)
7:00 AM China
Consumer Price Index (YoY)
% Change
Oct
1.90
Source: Bloomberg, Angel Research
Market Outlook
October 24, 2016
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
9.0
12.0
8.3
9.9
7.8
7.9
10.0
8.0
7.5
7.5
7.6
7.2
7.1
8.0
6.6
6.7
7.0
6.4
6.0
5.8
6.0
4.0
1.9
2.0
1.3
2.0
0.3
5.0
-
4.0
(2.0)
(0.7)
(0.9)
(1.3)
(1.6)
(4.0)
(2.5)
3.0
(3.4)
(6.0)
Source: CSO, Angel Research
Source: MOSPI, Angel Research
Exhibit 3: Monthly CPI inflation trends
Exhibit 4: Manufacturing and services PMI
56.0
Mfg. PMI
Services PMI
(%)
55.0
7.0
6.1
54.0
5.6
5.7
5.8
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
Market Outlook
October 24, 2016
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
6.7
6.0
5.3
0.6
5.2
4.0
3.5
4.0
3.1
2.1
2.0
1.3
1.3
0.8
-
(2.0)
(0.6)
(4.0)
(3.8)
(6.0)
Source: Bloomberg, Angel Research
Exhibit 2: 2016 GDP Growth projection by IMF (%, yoy) across select developing and developed countries
(%)
10.0
7.6
8.0
6.6
6.0
4.9
4.3
4.0
3.2
1.8
1.7
1.6
2.0
1.3
(0.8)
0.5
(3.3)
0.1
-
(2.0)
(4.0)
Source: IMF, Angel Research
Exhibit 3: One year forward P-E ratio across select developing and developed countries
(x)
20.0
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
-
Source: IMF, Angel Research
Market Outlook
October 24, 2016
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
64,108
11.0
13.2
35.7
Russia
Micex
1,958
(2.0)
1.3
14.5
India
Nifty
8,693
(1.3)
2.2
6.9
China
Shanghai Composite
3,091
2.4
1.4
(5.1)
South Africa
Top 40
45,069
1.8
(2.6)
(5.3)
Mexico
Mexbol
48,418
3.2
1.9
7.6
Indonesia
LQ45
930
0.2
4.2
22.1
Malaysia
KLCI
1,670
0.9
(0.0)
(2.4)
Thailand
SET 50
947
(0.1)
(1.2)
2.9
USA
Dow Jones
18,146
(0.8)
(2.3)
2.8
UK
FTSE
7,020
2.7
4.3
9.4
Japan
Nikkei
17,185
4.0
2.8
(5.8)
Germany
DAX
10,711
3.0
5.6
(0.8)
France
CAC
4,536
2.9
3.4
(7.4)
Source: Bloomberg, Angel Research
Stock Watch
October 24, 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
235
-
4,565
1,937
2,164
13.3
14.3
9.0
11.0
26.1
21.3
4.5
4.0
18.4
19.8
2.4
2.1
United Phosphorus
Neutral
718
-
36,404
15,176
17,604
18.5
18.5
37.4
44.6
19.2
16.1
3.8
3.1
21.4
21.2
2.5
2.1
Auto & Auto Ancillary
Ashok Leyland
Buy
87
111
24,702
22,407
26,022
10.6
10.6
5.2
6.4
16.6
13.5
3.8
3.2
23.6
24.7
1.2
1.0
Bajaj Auto
Neutral
2,799
-
80,992
25,093
27,891
19.5
19.2
143.9
162.5
19.5
17.2
5.5
4.7
30.3
29.4
3.0
2.6
Bharat Forge
Neutral
891
-
20,750
7,726
8,713
20.5
21.2
35.3
42.7
25.3
20.9
4.7
4.2
18.9
20.1
2.7
2.4
Eicher Motors
Neutral
25,122
-
68,235
16,583
20,447
17.5
18.0
598.0
745.2
42.0
33.7
14.4
10.9
41.2
38.3
3.9
3.1
Gabriel India
Accumulate
117
130
1,686
1,544
1,715
9.0
9.3
5.4
6.3
21.7
18.6
4.1
3.6
18.9
19.5
1.0
0.9
Hero Motocorp
Neutral
3,361
-
67,106
31,253
35,198
15.3
15.0
172.3
192.1
19.5
17.5
7.1
6.1
38.9
37.0
2.0
1.8
Jamna Auto Industries Neutral
224
-
1,790
1,486
1,620
9.8
9.9
15.0
17.2
14.9
13.0
3.3
2.8
21.8
21.3
1.3
1.2
L G Balakrishnan & Bros Neutral
589
-
925
1,302
1,432
11.6
11.9
43.7
53.0
13.5
11.1
1.9
1.7
13.8
14.2
0.8
0.7
Mahindra and Mahindra Neutral
1,327
-
82,419
46,534
53,077
11.6
11.7
67.3
78.1
19.7
17.0
3.2
2.8
15.4
15.8
1.7
1.5
Maruti
Accumulate
5,650
5,998
170,669
69,186
82,217
14.7
14.4
198.5
241.4
28.5
23.4
5.5
4.5
20.2
20.0
2.2
1.7
Minda Industries
Neutral
343
-
2,717
2,728
3,042
9.0
9.1
68.2
86.2
5.0
4.0
1.1
0.9
23.8
24.3
1.1
0.9
Motherson Sumi
Neutral
334
-
46,908
45,896
53,687
7.8
8.3
13.0
16.1
25.6
20.8
8.3
6.6
34.7
35.4
1.1
0.9
Rane Brake Lining
Neutral
1,264
-
1,001
511
562
11.3
11.5
28.1
30.9
45.0
40.9
6.9
6.2
15.3
15.0
2.1
1.9
Setco Automotive
Neutral
43
-
576
741
837
13.0
13.0
15.2
17.0
2.8
2.5
0.5
0.4
15.8
16.3
1.2
1.1
Tata Motors
Neutral
545
-
157,223
300,209
338,549
8.9
8.4
42.7
54.3
12.8
10.0
2.0
1.7
15.6
17.2
0.6
0.6
TVS Motor
Neutral
396
-
18,799
13,390
15,948
6.9
7.1
12.8
16.5
31.0
23.9
7.7
6.1
26.3
27.2
1.4
1.2
Amara Raja Batteries
Buy
1,025
1,218
17,509
5,429
6,471
17.5
17.6
35.3
43.5
29.0
23.6
6.7
5.4
25.3
24.8
3.1
2.5
Exide Industries
Neutral
204
-
17,323
7,439
8,307
15.0
15.0
8.1
9.3
25.2
21.9
3.5
3.2
14.3
16.7
1.9
1.7
Apollo Tyres
Accumulate
213
235
10,847
12,877
14,504
14.3
13.9
21.4
23.0
9.9
9.3
1.5
1.3
16.4
15.2
1.0
0.9
Ceat
Accumulate
1,315
1,450
5,318
7,524
8,624
13.0
12.7
131.1
144.3
10.0
9.1
1.9
1.6
19.8
18.6
0.8
0.7
JK Tyres
Neutral
150
-
3,406
7,455
8,056
15.0
15.0
21.8
24.5
6.9
6.1
1.4
1.2
22.8
21.3
0.6
0.5
Swaraj Engines
Neutral
1,377
-
1,710
660
810
15.2
16.4
54.5
72.8
25.3
18.9
7.9
7.1
31.5
39.2
2.4
1.9
Subros
Neutral
142
-
849
1,488
1,681
11.7
11.9
6.4
7.2
22.1
19.8
2.3
2.1
10.8
11.4
0.8
0.7
Indag Rubber
Neutral
206
-
541
286
326
19.8
16.8
11.7
13.3
17.6
15.5
3.0
2.8
17.8
17.1
1.6
1.4
Capital Goods
ACE
Neutral
44
-
438
709
814
4.1
4.6
1.4
2.1
31.6
21.1
1.3
1.2
4.4
6.0
0.8
0.7
BEML
Buy
929
1,157
3,867
3,451
4,055
6.3
9.2
31.4
57.9
29.6
16.0
1.8
1.6
6.3
10.9
1.2
1.0
Bharat Electronics
Accumulate
1,264
1,414
30,338
8,137
9,169
16.8
17.2
58.7
62.5
21.5
20.2
3.3
3.0
44.6
46.3
2.7
2.4
Stock Watch
October 24, 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
Neutral
394
-
13,034
6,511
7,514
7.9
8.7
12.9
16.3
30.5
24.2
5.5
4.8
16.7
18.5
1.8
1.5
BGR Energy
Neutral
115
-
833
16,567
33,848
6.0
5.6
7.8
5.9
14.8
19.6
0.8
0.8
4.7
4.2
0.2
0.1
BHEL
Neutral
142
-
34,682
28,797
34,742
-
2.8
2.3
6.9
61.6
20.5
1.1
1.0
1.3
4.8
0.9
0.6
Blue Star
Buy
541
634
5,161
4,283
5,077
5.9
7.3
14.9
22.1
36.4
24.5
7.1
6.0
20.4
26.4
1.3
1.1
Crompton Greaves
Neutral
76
-
4,788
5,777
6,120
5.9
7.0
3.3
4.5
23.2
17.0
1.0
1.0
4.4
5.9
0.8
0.7
Greaves Cotton
Neutral
127
-
3,103
1,755
1,881
16.8
16.9
7.8
8.5
16.3
15.0
3.3
3.0
20.6
20.9
1.5
1.3
Inox Wind
Buy
222
286
4,930
5,605
6,267
15.7
16.4
24.8
30.0
9.0
7.4
2.5
1.8
25.9
24.4
0.9
0.8
KEC International
Neutral
126
-
3,246
9,294
10,186
7.9
8.1
9.9
11.9
12.8
10.6
1.9
1.6
15.6
16.3
0.6
0.5
Thermax
Neutral
875
-
10,426
5,421
5,940
7.3
7.3
25.7
30.2
34.0
29.0
4.1
3.8
12.2
13.1
1.8
1.7
VATech Wabag
Buy
508
681
2,770
3,136
3,845
8.9
9.1
26.0
35.9
19.5
14.2
2.4
2.1
13.4
15.9
0.8
0.6
Cement
ACC
Neutral
1,562
-
29,333
11,225
13,172
13.2
16.9
44.5
75.5
35.1
20.7
3.3
3.1
11.2
14.2
2.6
2.2
Ambuja Cements
Neutral
248
-
49,194
9,350
10,979
18.2
22.5
5.8
9.5
42.7
26.1
3.6
3.2
10.2
12.5
5.3
4.5
India Cements
Neutral
155
-
4,755
4,364
4,997
18.5
19.2
7.9
11.3
19.6
13.7
1.4
1.4
8.0
8.5
1.9
1.6
JK Cement
Neutral
950
-
6,645
4,398
5,173
15.5
17.5
31.2
55.5
30.5
17.1
3.7
3.2
12.0
15.5
2.1
1.7
J K Lakshmi Cement
Accumulate
499
565
5,868
2,913
3,412
14.5
19.5
7.5
22.5
66.5
22.2
4.1
3.4
12.5
18.0
2.6
2.2
Orient Cement
Buy
180
215
3,680
2,114
2,558
18.5
20.5
8.1
11.3
22.2
15.9
3.3
2.8
9.0
14.0
2.4
1.9
UltraTech Cement
Neutral
3,981
-
109,259
25,768
30,385
21.0
23.5
111.0
160.0
35.9
24.9
4.6
4.0
13.5
15.8
4.3
3.6
Construction
ITNL
Neutral
112
-
3,693
8,946
10,017
31.0
31.6
8.1
9.1
13.9
12.3
0.5
0.5
4.2
5.0
3.7
3.5
KNR Constructions
Neutral
779
-
2,190
1,385
1,673
14.7
14.0
41.2
48.5
18.9
16.1
3.5
3.0
14.9
15.2
1.7
1.4
Larsen & Toubro
Accumulate
1,511
1,700
140,780
67,665
77,249
10.7
11.5
57.3
71.2
26.4
21.2
2.4
2.3
12.6
14.3
2.3
2.0
Gujarat Pipavav Port
Neutral
169
-
8,185
705
788
52.2
51.7
5.0
5.6
33.9
30.2
3.3
3.0
11.2
11.2
11.3
9.6
Nagarjuna Const.
Neutral
92
-
5,134
8,842
9,775
9.1
8.8
5.3
6.4
17.4
14.4
1.4
1.3
8.2
9.1
0.7
0.6
PNC Infratech
Buy
124
143
3,172
2,350
2,904
13.1
13.2
9.0
8.8
13.7
14.1
0.5
0.4
15.9
13.9
1.5
1.2
Simplex Infra
Neutral
330
-
1,633
6,829
7,954
10.5
10.5
31.4
37.4
10.5
8.8
1.1
1.0
9.9
13.4
0.7
0.6
Power Mech Projects
Neutral
482
-
709
1,801
2,219
12.7
14.6
72.1
113.9
6.7
4.2
1.2
1.0
16.8
11.9
0.4
0.3
Sadbhav Engineering
Accumulate
278
298
4,773
3,598
4,140
10.3
10.6
9.0
11.9
30.9
23.4
3.2
2.8
9.9
11.9
1.6
1.4
NBCC
Neutral
241
-
14,472
7,428
9,549
7.9
8.6
8.2
11.0
29.4
21.9
1.5
1.2
28.2
28.7
1.7
1.2
MEP Infra
Neutral
43
-
698
1,877
1,943
30.6
29.8
3.0
4.2
14.3
10.2
6.9
4.7
0.6
0.6
1.8
1.6
SIPL
Neutral
107
-
3,764
1,036
1,252
65.5
66.2
(8.4)
(5.6)
4.0
4.6
(22.8)
(15.9)
11.9
9.9
Stock Watch
October 24, 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
267
-
9,010
1,725
1,935
16.0
19.1
11.4
13.9
23.5
19.2
3.2
3.1
13.4
15.3
4.2
3.7
Financials
Axis Bank
Buy
527
630
125,687
46,932
53,575
3.5
3.4
32.4
44.6
16.3
11.8
2.1
1.8
13.6
16.5
-
-
Bank of Baroda
Neutral
156
-
36,003
19,980
23,178
1.8
1.8
11.5
17.3
13.6
9.0
1.6
1.3
8.3
10.1
-
-
Canara Bank
Neutral
320
-
17,357
15,225
16,836
1.8
1.8
14.5
28.0
22.0
11.4
1.5
1.2
5.8
8.5
-
-
Dewan Housing Finance Accumulate
332
350
9,682
2,225
2,688
2.9
2.9
29.7
34.6
11.2
9.6
1.8
1.5
16.1
16.8
-
-
Equitas Holdings
Buy
183
235
6,147
939
1,281
11.7
11.5
5.8
8.2
31.6
22.4
2.7
2.4
10.9
11.5
-
-
Federal Bank
Neutral
73
-
12,586
9,353
10,623
2.9
2.9
4.4
5.8
16.7
12.6
1.6
1.4
9.5
11.0
-
-
HDFC
Neutral
1,337
-
211,296
11,475
13,450
3.4
3.4
45.3
52.5
29.5
25.5
5.7
5.0
20.2
20.5
-
-
HDFC Bank
Accumulate
1,270
1,350
321,620
46,097
55,433
4.5
4.5
58.4
68.0
21.8
18.7
3.8
3.2
18.8
18.6
-
-
ICICI Bank
Neutral
278
-
161,536
39,029
45,903
3.3
3.3
16.7
16.3
16.6
17.0
2.1
1.9
10.1
12.4
-
-
LIC Housing Finance
Accumulate
600
630
30,262
3,712
4,293
2.6
2.5
39.0
46.0
15.4
13.0
2.9
2.5
19.9
20.1
-
-
Punjab Natl.Bank
Neutral
148
-
31,398
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
Accumulate
329
365
12,150
1,783
2,309
2.6
2.6
12.7
16.4
25.9
20.0
2.8
2.5
12.8
13.3
-
-
South Ind.Bank
Neutral
24
-
3,254
6,435
7,578
2.5
2.5
2.7
3.1
8.9
7.8
1.2
1.0
10.1
11.2
-
-
St Bk of India
Neutral
258
-
200,590
88,650
98,335
2.6
2.6
13.5
18.8
19.1
13.7
1.8
1.6
7.0
8.5
-
-
Union Bank
Neutral
147
-
10,109
13,450
14,925
2.3
2.3
25.5
34.5
5.8
4.3
0.8
0.7
7.5
10.2
-
-
Yes Bank
Neutral
1,317
-
55,448
8,978
11,281
3.3
3.4
74.0
90.0
17.8
14.6
3.4
2.9
17.0
17.2
-
-
FMCG
Asian Paints
Neutral
1,154
-
110,643
17,128
18,978
16.8
16.4
19.1
20.7
60.4
55.7
21.0
19.8
34.8
35.5
6.4
5.8
Britannia
Accumulate
3,306
3,626
39,668
9,795
11,040
14.6
14.9
80.3
94.0
41.2
35.2
16.9
13.1
41.2
-
3.9
3.4
Colgate
Neutral
953
-
25,932
4,605
5,149
23.4
23.4
23.8
26.9
40.1
35.4
22.2
17.3
64.8
66.8
5.6
4.9
Dabur India
Accumulate
284
304
49,977
8,315
9,405
19.8
20.7
8.1
9.2
35.1
30.9
9.8
8.1
31.6
31.0
5.7
5.0
GlaxoSmith Con*
Neutral
6,119
-
25,732
4,350
4,823
21.2
21.4
179.2
196.5
34.1
31.2
9.1
7.7
27.1
26.8
5.3
4.7
Godrej Consumer
Neutral
1,624
-
55,313
10,235
11,428
18.4
18.6
41.1
44.2
39.5
36.8
8.8
7.4
24.9
24.8
5.5
4.9
HUL
Neutral
851
-
184,199
35,252
38,495
17.6
17.4
20.4
21.9
41.7
38.9
34.3
30.0
82.2
77.3
5.0
4.6
ITC
Buy
240
283
289,518
40,059
44,439
39.0
39.2
9.1
10.1
26.4
23.8
7.2
6.3
27.2
26.5
6.7
6.0
Marico
Accumulate
285
300
36,763
6,430
7,349
18.8
19.5
6.4
7.7
44.5
37.0
13.4
11.3
33.2
32.5
5.5
4.8
Nestle*
Neutral
6,853
-
66,072
10,073
11,807
20.7
21.5
124.8
154.2
54.9
44.4
22.5
20.3
34.8
36.7
6.4
5.4
Tata Global
Neutral
153
-
9,625
8,675
9,088
9.8
9.8
7.4
8.2
20.6
18.6
2.3
2.2
7.9
8.1
1.0
1.0
Procter & Gamble
Neutral
7,020
-
22,786
2,939
3,342
23.2
23.0
146.2
163.7
48.0
42.9
107.5
103.1
25.3
23.5
7.3
6.3
Hygiene
Stock Watch
October 24, 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
IT
HCL Tech^
Buy
831
1,000
117,241
49,242
57,168
20.5
20.5
55.7
64.1
14.9
13.0
3.0
2.3
20.3
17.9
2.2
1.8
Infosys
Buy
1,038
1,249
238,446
68,350
77,326
27.0
27.0
62.5
69.4
16.6
15.0
3.5
3.2
21.3
21.6
2.9
2.5
TCS
Buy
2,429
3,004
478,558
121,684
136,286
27.3
27.3
135.0
150.1
18.0
16.2
6.0
5.5
33.2
33.9
3.7
3.3
Tech Mahindra
Buy
434
700
42,128
30,347
33,685
17.0
17.0
37.5
41.3
11.6
10.5
2.5
2.2
21.8
20.7
1.1
0.9
Wipro
Buy
499
680
121,342
51,631
55,822
21.7
17.9
35.9
36.9
13.9
13.5
2.9
2.7
19.0
18.1
2.0
1.8
Media
D B Corp
Neutral
398
-
7,306
2,297
2,590
27.4
28.2
21.0
23.4
18.9
17.0
4.4
3.8
23.7
23.1
3.0
2.6
HT Media
Neutral
92
-
2,142
2,693
2,991
12.6
12.9
7.9
9.0
11.7
10.2
1.0
0.9
7.8
8.3
0.4
0.2
Jagran Prakashan
Accumulate
205
225
6,707
2,355
2,635
28.0
28.0
10.8
12.5
19.0
16.4
4.1
3.6
21.7
21.7
2.9
2.5
Sun TV Network
Neutral
532
-
20,965
2,850
3,265
70.1
71.0
26.2
30.4
20.3
17.5
5.2
4.6
24.3
25.6
7.0
5.9
Hindustan Media
Neutral
299
-
2,193
1,016
1,138
24.3
25.2
27.3
30.1
11.0
9.9
2.1
1.9
16.2
15.8
1.5
1.3
Ventures
TV Today Network
Accumulate
331
363
1,977
637
743
27.5
27.5
18.4
21.4
18.0
15.5
3.1
2.7
17.4
17.2
2.7
2.2
Metals & Mining
Coal India
Neutral
313
-
197,892
84,638
94,297
21.4
22.3
24.5
27.1
12.8
11.6
5.3
5.1
42.6
46.0
1.9
1.7
Hind. Zinc
Neutral
249
-
105,253
14,252
18,465
55.9
48.3
15.8
21.5
15.8
11.6
2.6
2.3
17.0
20.7
7.4
5.7
Hindalco
Neutral
152
-
31,367
107,899
112,095
7.4
8.2
9.2
13.0
16.5
11.7
0.8
0.8
4.8
6.6
0.8
0.8
JSW Steel
Neutral
1,735
-
41,938
53,201
58,779
16.1
16.2
130.6
153.7
13.3
11.3
1.8
1.6
14.0
14.4
1.5
1.3
NMDC
Neutral
124
-
49,083
6,643
7,284
44.4
47.7
7.1
7.7
17.4
16.1
1.5
1.5
8.8
9.2
5.2
4.7
SAIL
Neutral
50
-
20,774
47,528
53,738
(0.7)
2.1
(1.9)
2.6
19.4
0.6
0.5
(1.6)
3.9
1.3
1.2
Vedanta
Neutral
203
-
60,213
71,744
81,944
19.2
21.7
13.4
20.1
15.2
10.1
1.3
1.2
8.4
11.3
1.2
0.9
Tata Steel
Neutral
427
-
41,500
121,374
121,856
7.2
8.4
18.6
34.3
23.0
12.5
1.4
1.3
6.1
10.1
1.0
1.0
Oil & Gas
Cairn India
Neutral
232
-
43,469
9,127
10,632
4.3
20.6
8.8
11.7
26.4
19.8
0.9
0.8
3.3
4.2
6.2
5.2
GAIL
Neutral
440
-
55,870
56,220
65,198
9.3
10.1
27.1
33.3
16.3
13.2
1.5
1.4
9.3
10.7
1.2
1.0
ONGC
Neutral
280
-
239,554
137,222
152,563
15.0
21.8
19.5
24.1
14.4
11.6
1.2
1.2
8.5
10.1
2.0
1.8
Indian Oil Corp
Neutral
324
-
157,477
373,359
428,656
5.9
5.5
54.0
59.3
6.0
5.5
0.9
0.8
16.0
15.6
0.6
0.5
Reliance Industries
Neutral
1,064
-
345,126
301,963
358,039
12.1
12.6
87.7
101.7
12.1
10.5
1.2
1.1
10.7
11.3
1.6
1.3
Pharmaceuticals
Alembic Pharma
Neutral
675
-
12,733
3,483
4,083
20.2
21.4
24.3
30.4
27.8
22.2
6.3
5.1
25.5
25.3
3.6
3.0
Aurobindo Pharma
Accumulate
824
877
48,189
15,720
18,078
23.7
23.7
41.4
47.3
19.9
17.4
5.2
4.0
29.6
26.1
3.3
2.9
Sanofi India*
Neutral
4,323
-
9,955
2,357
2,692
17.3
17.3
153.5
169.2
28.2
25.6
4.8
3.9
25.8
28.4
3.9
3.2
Cadila Healthcare
Neutral
392
-
40,095
11,126
13,148
22.0
22.0
17.1
20.0
22.9
19.6
5.9
4.7
28.8
26.6
3.6
3.0
Cipla
Sell
583
490
46,828
15,378
18,089
17.4
18.4
21.6
27.2
27.0
21.4
3.5
3.0
13.7
15.2
3.2
2.7
Stock Watch
October 24, 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
3,109
-
51,513
16,043
18,119
23.1
24.7
126.0
157.8
24.7
19.7
3.6
3.1
15.7
17.1
3.2
2.8
Dishman Pharma
Sell
239
45
3,851
1,718
1,890
22.7
22.8
9.5
11.3
25.1
21.1
2.4
2.2
10.1
10.9
2.7
2.4
GSK Pharma*
Neutral
2,960
-
25,074
3,528
3,811
16.6
18.8
51.8
59.4
57.2
49.8
15.3
15.2
26.3
30.6
6.9
6.4
Indoco Remedies
Sell
309
225
2,850
1,112
1,289
18.2
18.2
13.2
15.6
23.4
19.8
4.2
3.5
19.2
19.2
2.7
2.3
Ipca labs
Neutral
631
-
7,963
3,303
3,799
15.3
15.3
17.3
19.7
36.5
32.0
3.2
2.9
9.1
9.4
2.5
2.2
Lupin
Buy
1,499
1,809
67,576
15,912
18,644
26.4
26.7
58.1
69.3
25.8
21.6
5.0
4.1
21.4
20.9
4.3
3.6
Sun Pharma
Buy
747
944
179,720
31,129
35,258
30.0
30.9
28.0
32.8
26.7
22.8
4.1
3.4
18.7
18.9
5.4
4.5
Power
Tata Power
Neutral
84
-
22,611
36,916
39,557
17.4
27.1
5.1
6.3
16.4
13.3
1.4
1.3
9.0
10.3
1.6
1.5
NTPC
Neutral
149
-
123,228
86,605
95,545
17.5
20.8
11.8
13.4
12.7
11.2
1.3
1.2
10.5
11.1
2.8
2.8
Power Grid
Neutral
176
-
92,181
25,763
29,762
74.3
73.1
14.8
17.3
11.9
10.2
1.9
1.6
16.9
17.5
7.9
7.5
Real Estate
MLIFE
Buy
438
522
1,797
1,152
1,300
22.7
24.6
29.9
35.8
14.7
12.2
1.1
1.0
7.6
8.6
2.3
1.9
Telecom
Bharti Airtel
Neutral
309
-
123,680
105,086
114,808
34.5
34.7
12.2
16.4
25.4
18.9
1.7
1.6
6.8
8.4
2.1
1.8
Idea Cellular
Neutral
80
-
28,806
40,133
43,731
37.2
37.1
6.4
6.5
12.5
12.3
1.0
1.0
8.2
7.6
1.7
1.5
zOthers
Abbott India
Neutral
4,749
-
10,091
3,153
3,583
14.1
14.4
152.2
182.7
31.2
26.0
153.2
130.8
25.6
26.1
2.9
2.5
Bajaj Electricals
Buy
263
306
2,653
5,099
5,805
5.6
5.9
11.4
14.6
23.1
18.0
3.1
2.7
13.4
15.1
0.5
0.5
Finolex Cables
Neutral
426
-
6,514
2,883
3,115
12.0
12.1
14.2
18.6
30.0
22.9
16.0
14.0
15.8
14.6
2.0
1.8
Goodyear India*
Neutral
811
-
1,870
1,598
1,704
10.4
10.2
49.4
52.6
16.4
15.4
75.8
66.5
18.2
17.0
0.9
120.8
Hitachi
Neutral
1,567
-
4,262
2,081
2,433
8.8
8.9
33.4
39.9
46.9
39.3
37.9
31.6
22.1
21.4
2.0
1.7
Jyothy Laboratories
Neutral
356
-
6,464
1,440
2,052
11.5
13.0
8.5
10.0
41.9
35.6
10.1
9.4
18.6
19.3
4.8
3.3
Page Industries
Neutral
16,452
-
18,351
2,450
3,124
20.1
17.6
299.0
310.0
55.0
53.1
366.4
279.7
47.1
87.5
7.5
5.9
Relaxo Footwears
Neutral
432
-
5,187
2,085
2,469
9.2
8.2
7.6
8.0
57.2
54.4
22.2
18.9
17.9
18.8
2.6
2.2
Siyaram Silk Mills
Accumulate
1,516
1,714
1,421
1,799
2,040
11.6
11.7
104.9
122.4
14.5
12.4
2.4
2.0
16.4
16.4
1.0
0.9
Styrolution ABS India*
Neutral
615
-
1,082
1,440
1,537
9.2
9.0
40.6
42.6
15.2
14.4
38.7
35.2
12.3
11.6
0.7
0.6
TVS Srichakra
Neutral
3,762
-
2,881
2,304
2,614
13.7
13.8
231.1
266.6
16.3
14.1
422.7
332.9
33.9
29.3
1.3
1.1
HSIL
Neutral
350
-
2,531
2,384
2,515
15.8
16.3
15.3
19.4
22.9
18.1
22.7
19.6
7.8
9.3
1.2
1.1
Kirloskar Engines India
Neutral
352
-
5,089
2,554
2,800
9.9
10.0
10.5
12.1
33.5
29.1
14.0
13.2
10.7
11.7
1.6
1.5
Ltd
M M Forgings
Neutral
458
-
553
546
608
20.4
20.7
41.3
48.7
11.1
9.4
62.8
55.6
16.6
17.0
0.9
0.8
Banco Products (India)
Neutral
233
-
1,669
1,353
1,471
12.3
12.4
14.5
16.3
16.1
14.3
22.2
20.0
14.5
14.6
1.2
126.3
Competent Automobiles Neutral
197
-
121
1,137
1,256
3.1
2.7
28.0
23.6
7.0
8.3
37.8
34.2
14.3
11.5
0.1
0.1
Stock Watch
October 24, 2016
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
zOthers
Nilkamal
Neutral
1,736
-
2,590
1,995
2,165
10.7
10.4
69.8
80.6
24.9
21.5
99.2
86.2
16.6
16.5
1.3
1.1
Visaka Industries
Neutral
226
-
359
1,051
1,138
10.3
10.4
21.0
23.1
10.8
9.8
29.0
27.2
9.0
9.2
0.6
0.6
Transport Corporation of
Neutral
181
-
1,382
2,671
2,911
8.5
8.8
13.9
15.7
13.0
11.5
1.8
1.6
13.7
13.8
0.6
0.6
India
Elecon Engineering
Neutral
69
-
751
1,482
1,660
13.7
14.5
3.9
5.8
17.7
11.9
4.2
3.8
7.8
10.9
0.8
0.7
Surya Roshni
Neutral
237
-
1,037
3,342
3,625
7.8
7.5
17.3
19.8
13.7
12.0
26.0
20.9
10.5
10.8
0.6
0.5
MT Educare
Neutral
136
-
543
366
417
17.7
18.2
9.4
10.8
14.6
12.6
3.2
2.8
22.2
22.3
1.4
1.2
Radico Khaitan
Neutral
143
-
1,908
1,659
1,802
13.0
13.2
6.3
7.4
22.6
19.5
2.0
1.8
8.6
9.3
1.6
1.5
Garware Wall Ropes
Neutral
529
-
1,159
873
938
12.9
13.1
30.9
34.9
17.1
15.2
2.7
2.3
15.7
15.2
1.2
1.1
Wonderla Holidays
Neutral
405
-
2,291
287
355
38.0
40.0
11.3
14.2
35.9
28.6
5.1
4.5
21.4
23.9
7.7
6.2
Linc Pen & Plastics
Neutral
260
-
384
382
420
9.3
9.5
13.5
15.7
19.3
16.6
3.3
2.9
17.1
17.3
1.1
1.0
The Byke Hospitality
Neutral
183
-
735
287
384
20.5
20.5
7.6
10.7
24.1
17.1
5.0
4.1
20.7
23.5
2.6
1.9
Interglobe Aviation
Neutral
936
-
33,737
21,122
26,005
14.5
27.6
110.7
132.1
8.5
7.1
50.6
36.2
168.5
201.1
1.6
1.2
Coffee Day Enterprises
Neutral
228
-
4,688
2,964
3,260
20.5
21.2
4.7
8.0
-
28.4
2.6
2.4
5.5
8.5
2.0
1.8
Ltd
Navneet Education
Neutral
101
-
2,394
1,062
1,147
24.0
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
199
265
2,842
408
612
42.9
42.3
6.8
11.5
29.4
17.3
2.0
1.8
6.9
10.5
7.9
5.3
UFO Moviez
Neutral
450
-
1,243
619
685
33.2
33.4
30.0
34.9
15.0
12.9
2.1
1.8
13.8
13.9
1.7
1.4
VRL Logistics
Neutral
322
-
2,937
1,902
2,119
16.7
16.6
14.6
16.8
22.1
19.1
4.8
4.3
21.9
22.2
1.7
1.5
Team Lease Serv.
Neutral
1,018
-
1,740
3,229
4,001
1.5
1.8
22.8
32.8
44.7
31.0
4.8
4.2
10.7
13.4
0.4
0.3
S H Kelkar & Co.
Neutral
302
-
4,365
1,036
1,160
15.1
15.0
6.1
7.2
49.4
42.1
5.3
4.8
10.7
11.5
4.1
3.6
Quick Heal
Neutral
257
-
1,799
408
495
27.3
27.0
7.7
8.8
33.2
29.2
3.1
3.1
9.3
10.6
3.6
2.9
Narayana Hrudaya
Neutral
350
-
7,157
1,873
2,166
11.5
11.7
2.6
4.0
132.4
88.3
8.1
7.3
6.1
8.3
3.9
3.4
Manpasand Bever.
Neutral
724
-
4,142
836
1,087
19.6
19.4
16.9
23.8
42.9
30.4
5.1
4.5
12.0
14.8
4.7
3.5
Parag Milk Foods
Neutral
320
-
2,688
1,919
2,231
9.3
9.6
9.5
12.9
33.8
24.7
5.3
4.3
15.5
17.5
1.6
1.3
Mirza International
Buy
96
113
1,150
1,024
1,148
18.0
18.0
6.9
8.0
13.9
11.9
2.3
2.0
16.6
16.2
1.3
1.2
Asian Granito
Buy
278
351
837
1,118
1,220
11.8
12.0
13.0
16.0
21.4
17.4
2.1
1.9
9.7
10.7
1.0
0.9
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 21, 2016
Market Outlook
October 24, 2016
Research Team Tel: 022 - 39357800
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