Market Outlook
October 25, 2016
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open sideways tracking Asian markets and SGX Nifty.
BSE Sensex
0.4
102
28,179
Nifty
0.2
16
8,709
U.S. stocks rallied on Monday due to the announcement of a number of mergers.
Major stock indices posted a two week high due to the positive sentiment in the
Mid Cap
(0.1)
(17)
13,585
market. Stocks rallied in spite of a statement by the Chicago Fed President that the
Small Cap
0.5
69
13,501
Federal Reserve is likely to raise short-term interest rates by three quarter-point
Bankex
0.6
136
22,722
moves by year end of 2017.
UK’s stocks moved slightly higher despite a weak pound. Media and broadcast firms
Global Indices
Chg (%)
(Pts)
(Close)
rose, with ITV shares up 1.8 percent, after AT&T announced it would buy media
Dow Jones
0.4
77
18,223
group Time Warner for $85.4bn. Shares of GlaxoSmithKline were down about half
a percent as it waits for regulatory approval for its experimental shingles vaccine.
Nasdaq
1.0
52
5,310
FTSE
(0.5)
(34)
6,986
Indian stocks posted modest gains on Monday. The rally was led by largecap
companies such as ICICI Bank, Tata Motors, Coal India, BPCL and ONGC. IT stocks
Nikkei
0.3
50
17,234
resumed their downward trend with Wipro and Mindtree posting poor guidance and
Hang Seng
1.0
230
23,604
results respectively. HCL Technologies declined 2.5 percent on reports that it is
Shanghai Com
1.2
37
3,128
aggressively looking at acquisition opportunities to drive future growth.
Advances / Declines
BSE
NSE
Result Review & News Analysis
Advances
1,668
936
News Analysis: Cyrus Mistry steps down as Chairman of Tata Sons
Declines
1,194
701
Result Review: Dr. Reddys, Alembic Pharma
Detailed analysis on Pg2
Unchanged
233
76
Investor’s Ready Reckoner
Volumes (` Cr)
Key Domestic & Global Indicators
BSE
3,397
Stock Watch: Latest investment recommendations on 150+ stocks
NSE
18,598
Refer Pg6 onwards
Top Picks
Net Inflows (` Cr)
Net
Mtd
Ytd
CMP
Target
Upside
Company
Sector
Rating
FII
(222)
(604)
49,401
(`)
(`)
(%)
MFs
647
4,761
18,707
Amara Raja Batteries Auto & Auto Ancill.
Buy
1,036
1,218
17.6
HCL Tech
IT
Buy
811
1,000
23.4
Bharat Electronics
Capital Goods
Accumulate
1,269
1,414
11.5
Top Gainers
Price (`)
Chg (%)
Equitas Holdings
Financials
Buy
176
235
33.3
Aban
279
5.8
Navkar Corporation Others
Buy
200
265
32.6
Muthootfin
365
5.6
More Top Picks on Pg5
Nlcindia
82
5.3
Key Upcoming Events
Den
77
5.1
Previous
Consensus
Date
Region
Event Description
Laxmimach
4,559
5.0
Reading
Expectations
Oct 25 US
New home sales
609.0
600.0
Oct 26 US
Consumer Confidence
104.1
101.0
Top Losers
Price (`)
Chg (%)
Oct 27 US
GDP QoQ (Annualised)
1.4
2.5
Mindtree
456
(4.8)
Oct 27 US
Initial Jobless claims
260.0
--
Idea
77
(3.8)
Oct 28 UK
GDP (YoY)
2.1
2.1
Ceatltd
1,268
(3.6)
Oct 28 Euro Zone
Euro Zone Consumer Confidence
(8.0)
(8.0)
Oct 31 Euro Zone
Euro Zone GDP s.a. (QoQ)
0.3
--
Biocon
971
(3.5)
Nov 01 UK
PMI Manufacturing
55.4
--
Persistent
656
(3.2)
6.(
More Events on Pg6
As on October 24, 2016
Market Outlook
October 25, 2016
News Analysis
Cyrus Mistry steps down as Chairman of Tata Sons
Cyrus Mistry has stepped down as the Chairman of the Tata Group of companies
and Ratan Tata would be taking over as interim Chairman. The departure of Mr.
Mistry based on issues relating to the group’s performance. Ratan Tata would be
the interim Chairman for the next four months till a successor is appointed by a
five member selection panel. The takeover by Ratan Tata is expected to add
stability during this transition phase.
The combined market valuation of all listed companies of Tata Group almost
doubled during the four-year tenure of outgoing chief Cyrus Mistry.
The Shapoorji Pallonji Group has termed the removal of Cyrus Mistry from the
Chairman post of Tata Sons as "illegal” and would likely to challenge the decision.
We do not expect this development to have a long term impact on any of the Tata
group stocks.
Result Review
Dr Reddy’s Labs (CMP: `3,090 / TP: /Upside: )
Dr Reddy’s Lab will post a lackluster quarter during the period. In rupee terms, the
consolidated revenues are expected to come in at `3,500cr V/s `3,989cr (in
2QFY2016), down 12.3% yoy, mainly driven by pressure on the US market. EBIT
margins, is expected to come in at 12.1% V/s 22.4% in 2QFY2016. Consequently,
PAT came in at `325cr V/s `722cr in 2QFY2016, de-growth of 55.0%. We
maintain our neutral 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
16,043
23.1
2,150
126.0
15.7
24.7
3.6
14.1
3.3
FY2018E
18,119
24.7
2,6925
157.8
17.1
19.7
3.1
11.6
2.9
Alembic Pharma (CMP: `680 / TP: /Upside:)
Alembic Pharma, posted sales of `750cr V/s `1,008cr down by 25.6% yoy, mainly
on back of base effect. International business is expected to decline owing to lower
contribution from gAbilify. On operating front, the gross margins are expected to
come in at 73.4% V/s 77.5% in 2QFY2016, with EBIDTA margins coming in at
21.9% V/s 37.2% in 2QFY2016. Consequently, PAT is expected to come in at
`112cr V/s `290cr, a yoy dip of 61.2%. We maintain our neutral 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
3,483
20.2
459
55.7
24.3
27.9
6.4
17.8
3.6
FY2018E
4,083
21.4
572
64.1
30.4
22.4
5.1
13.9
3.0
Market Outlook
October 25, 2016
Economic and Political News
Cotton exports fall by 28% due to lower shipments to Pakistan
Housing prices increase by an average of 7.3% during April-June, according
to RBI
Supreme Court dismisses plea against notification to regulate prices of 108
diabetic and cardiac drugs
Corporate News
Adani Power standalone net loss narrows to `135cr in Q2FY17
Reliance Capital posts `253cr net profit in Q2FY17
Jet Airways to deploy more wide-bodied planes on international routes due to
increase in demand
Quarterly Bloomberg Brokers Consensus Estimate
Axis Bank Ltd Consol - Oct 25, 2016
Particulars ( ` cr)
2QFY17E
2QFY16
y-o-y (%)
1QFY17
q-o-q (%)
PAT
1,998
1,916
4.3
1,556
28.5
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
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 25, 2016
Zee Entertainment Enterprise Ltd Consol - Oct 25, 2016
Particulars ( ` cr)
2QFY17E
2QFY16
y-o-y (%)
1QFY17
q-o-q (%)
Net sales
1,535
1,385
10.8
1,572
(2.3)
EBITDA
394
355
11.2
453
(13.0)
EBITDA margin (%)
25.7
25.6
28.8
Net profit
276
247
11.6
217
27.2
Bharti Airtel Ltd Consol - Oct 25, 2016
Particulars ( ` cr)
2QFY17E
2QFY16
y-o-y (%)
1QFY17
q-o-q (%)
Net sales
25,495
23,836
7.0
25,547
(0.2)
EBITDA
9,269
8,250
12.4
9,575
(3.2)
EBITDA margin (%)
36.4
34.6
37.5
Net profit
1,402
1,523
(8.0)
1,462
(4.1)
Shriram Transport Finance Co Ltd - Oct 25, 2016
Particulars ( ` cr)
2QFY17E
2QFY16
y-o-y (%)
1QFY17
q-o-q (%)
PAT
387
338
14.5
374
3.5
IDBI Bank Ltd - Oct 25, 2016
Particulars ( ` cr)
2QFY17E
2QFY16
y-o-y (%)
1QFY17
q-o-q (%)
PAT
(503)
120
0.0
241
0.0
Adani Port Ltd - Oct 25, 2016
Particulars ( ` cr)
2QFY17E
2QFY16
y-o-y (%)
1QFY17
q-o-q (%)
Net sales
1845
1842
0.2
1827
1.0
EBITDA
1168
1205
(3.1)
936
24.8
EBITDA margin (%)
63.3
65.4
37.5
Net profit
741
667
11.1
836
(11.4)
Market Outlook
October 25, 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
17,696
1,036
1,218
17.6
products leading to market share gains in both the
automotive OEM and replacement segments.
Healthy pace of branch expansion, backed by distribution
Axis Bank
1,24,422
521
630
20.9
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
30,445
1,269
1,414
11.5
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
1,14,370
811
1,000
23.4
the bad news.
Back on the growth trend, expect a long term growth of 14%
Infosys
2,36,356
1,029
1,249
21.4
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
829
275
351
27.4
owing to better product mix, higher B2C sales and
amalgamation synergy.
Among the top 4 players in the consumer durables segment.
Bajaj Electricals
2,667
264
306
16.0
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
5,113
536
634
18.2
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
9,599
329
350
6.4
segment, the company has increased its presence in tier-II &
III cities where the growth opportunity is immense.
Strong loan growth backed by diversified loan portfolio and
Equitas Holdings
5,914
176
235
33.3
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
6,587
202
225
11.7
radio business (Radio City) would also boost the company's
revenue growth.
Speedier execution and speedier sales, strong revenue visibilty
Mahindra Lifespace
1,781
434
522
20.2
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
1,145
95
113
18.8
aggressive ad spend and addition in the number of EBOs &
multi-brand outlets [MBOs]) and healthy export revenues.
Massive capacity expansion along with rail advantage at ICD
Navkar Corporation
2,850
200
265
32.6
as well CFS augurs well for the company.
Strong brands and distribution network would boost growth
Siyaram Silk Mills
1,427
1,523
1,714
12.6
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
2,023
339
363
7.1
and anticipated growth in ad spends by corporates to benefit
the stock.
Source: Company, Angel Research
Market Outlook
October 25, 2016
Key Upcoming Events
Result Calendar
Date
Company
Kotak Mah. Bank, Shriram Trans., IDBI Bank, Federal Bank, Asian Paints, Hexaware, Jyothy Laboratories, Visaka
Oct 25, 2016
Industries, Dr Reddy's, Alembic Pharma
Hero Motocorp, Exide Industries, Cummins India, LMW, J K Lakshmi Cements, HDFC, Canara Bank, Syndicate Bank,
Oct 26, 2016
ITC, HUL, Dabur India, Cadila Healthcare, Indoco Remedies
Maruti, TVS Motor, ABB, Vijaya Bank, Tech Mahindra, PVR, JSW Steel , ONGC, IOC, MRF, GSK Pharma, Glenmark
Oct 27, 2016
Pharma., Dishman Pharma, VRL Logistics
Oct 28, 2016
United Phosphorus, Bajaj Auto, Subros, IDFC, Nestle, Colgate, Sesa Goa, Heritage Foods, NTPC
Nov 1, 2016
Hindustan Media Ventures
Nov 2, 2016
HT Media
Nov 3, 2016
Ambuja Cements, Mphasis, MM Forging
Source: Bloomberg, Angel Research
Global economic events release calendar
Date
Time
Country
Event Description
Unit
Period
Bloomberg Data
Last Reported Estimated
Oct 25, 2016 7:30PM US
New home sales
Thousands
Sep
609.00
600.00
Oct 26, 2016 7:30PM US
Consumer Confidence
S.A./ 1985=100
Oct
104.10
101.00
Oct 27, 2016 6:00PM US
Initial Jobless claims
Thousands
Oct 22
260.00
255.00
6:00PM US
GDP Qoq (Annualised)
% Change
3Q A
1.40
2.50
Oct 28, 2016 2:00PM UK
GDP (YoY)
% Change
3Q A
2.10
2.10
2:30PM Euro Zone
Euro-Zone Consumer Confidence
Value
Oct F
(8.00)
(8.00)
Oct 31, 2016 3:30PM Euro Zone
Euro-Zone GDP s.a. (QoQ)
% Change
3Q A
0.30
--
Nov 1, 2016
3:00PM UK
PMI Manufacturing
Value
Oct
55.40
--
6:30AM China
PMI Manufacturing
Value
Oct
50.40
50.40
Nov 2, 2016
2:25PM Germany
Unemployment change (000's)
Thousands
Oct
1.00
--
11:30PM US
FOMC rate decision
%
Nov 2
0.50
0.50
Nov 3, 2016
5:30PM UK
BOE Announces rates
% Ratio
Nov 3
0.25
--
Nov 4, 2016
6:00PM US
Change in Nonfarm payrolls
Thousands
Oct
156.00
170.00
6:00PM US
Unnemployment rate
%
Oct
5.00
4.90
Nov 8, 2016
China
Exports YoY%
% Change
Oct
(10.00)
--
7:00AM China
Consumer Price Index (YoY)
% Change
Oct
1.90
--
Nov 9, 2016
3:00PM UK
Industrial Production (YoY)
% Change
Sep
0.70
--
Nov 10, 2016
India
Imports YoY%
% Change
Oct
(2.50)
--
India
Exports YoY%
% Change
Oct
4.60
--
Nov 11, 2016 5:30PM India
Industrial Production YoY
% Change
Sep
(0.70)
--
Nov 14, 2016 7:30AM China
Industrial Production (YoY)
% Change
Oct
6.10
--
12:00PM India
Monthly Wholesale Prices YoY%
% Change
Oct
3.57
--
Nov 15, 2016 3:00PM UK
CPI (YoY)
% Change
Oct
1.00
--
12:30PM Germany
GDP nsa (YoY)
% Change
3Q P
3.10
--
Source: Bloomberg, Angel Research
Market Outlook
October 25, 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 25, 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 25, 2016
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
64,060
9.7
12.4
35.0
Russia
Micex
1,963
(3.1)
1.3
14.6
India
Nifty
8,709
(0.8)
2.1
7.4
China
Shanghai Composite
3,128
4.2
2.8
(6.3)
South Africa
Top 40
45,134
(0.4)
(2.5)
(5.6)
Mexico
Mexbol
48,431
1.0
2.8
7.5
Indonesia
LQ45
930
(0.1)
3.9
21.9
Malaysia
KLCI
1,678
1.1
0.5
(2.1)
Thailand
SET 50
947
(0.1)
(1.2)
2.9
USA
Dow Jones
18,223
(0.9)
(1.5)
3.4
UK
FTSE
6,986
1.1
4.1
9.8
Japan
Nikkei
17,234
4.5
3.3
(3.7)
Germany
DAX
10,761
3.1
5.5
0.6
France
CAC
4,553
0.9
3.6
(7.4)
Source: Bloomberg, Angel Research
Stock Watch
October 25, 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
236
-
4,592
1,937
2,164
13.3
14.3
9.0
11.0
26.2
21.5
4.6
4.0
18.4
19.8
2.4
2.1
United Phosphorus
Neutral
721
-
36,528
15,176
17,604
18.5
18.5
37.4
44.6
19.3
16.2
3.8
3.1
21.4
21.2
2.5
2.1
Auto & Auto Ancillary
Ashok Leyland
Buy
88
111
25,044
22,407
26,022
10.6
10.6
5.2
6.4
16.9
13.7
3.8
3.2
23.6
24.7
1.2
1.0
Bajaj Auto
Neutral
2,789
-
80,713
25,093
27,891
19.5
19.2
143.9
162.5
19.4
17.2
5.4
4.7
30.3
29.4
2.9
2.6
Bharat Forge
Neutral
888
-
20,669
7,726
8,713
20.5
21.2
35.3
42.7
25.2
20.8
4.6
4.2
18.9
20.1
2.7
2.4
Eicher Motors
Neutral
24,860
-
67,523
16,583
20,447
17.5
18.0
598.0
745.2
41.6
33.4
14.2
10.8
41.2
38.3
3.9
3.1
Gabriel India
Accumulate
120
130
1,728
1,544
1,715
9.0
9.3
5.4
6.3
22.3
19.1
4.2
3.7
18.9
19.5
1.1
1.0
Hero Motocorp
Neutral
3,334
-
66,582
31,253
35,198
15.3
15.0
172.3
192.1
19.4
17.4
7.1
6.1
38.9
37.0
2.0
1.7
Jamna Auto Industries Neutral
229
-
1,828
1,486
1,620
9.8
9.9
15.0
17.2
15.3
13.3
3.3
2.8
21.8
21.3
1.3
1.2
L G Balakrishnan & Bros Neutral
671
-
1,053
1,302
1,432
11.6
11.9
43.7
53.0
15.4
12.7
2.2
2.0
13.8
14.2
0.9
0.8
Mahindra and Mahindra Neutral
1,339
-
83,192
46,534
53,077
11.6
11.7
67.3
78.1
19.9
17.2
3.2
2.8
15.4
15.8
1.8
1.5
Maruti
Accumulate
5,712
5,998
172,551
69,186
82,217
14.7
14.4
198.5
241.4
28.8
23.7
5.6
4.5
20.2
20.0
2.2
1.8
Minda Industries
Neutral
350
-
2,777
2,728
3,042
9.0
9.1
68.2
86.2
5.1
4.1
1.2
0.9
23.8
24.3
1.1
0.9
Motherson Sumi
Neutral
332
-
46,550
45,896
53,687
7.8
8.3
13.0
16.1
25.4
20.6
8.2
6.5
34.7
35.4
1.1
0.9
Rane Brake Lining
Neutral
1,280
-
1,013
511
562
11.3
11.5
28.1
30.9
45.5
41.4
7.0
6.3
15.3
15.0
2.1
1.9
Setco Automotive
Neutral
44
-
591
741
837
13.0
13.0
15.2
17.0
2.9
2.6
0.5
0.4
15.8
16.3
1.2
1.1
Tata Motors
Neutral
559
-
161,424
300,209
338,549
8.9
8.4
42.7
54.3
13.1
10.3
2.1
1.8
15.6
17.2
0.7
0.6
TVS Motor
Neutral
395
-
18,778
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
1,036
1,218
17,696
5,429
6,471
17.5
17.6
35.3
43.5
29.4
23.8
6.7
5.5
25.3
24.8
3.1
2.5
Exide Industries
Neutral
202
-
17,162
7,439
8,307
15.0
15.0
8.1
9.3
24.9
21.7
3.5
3.1
14.3
16.7
1.9
1.7
Apollo Tyres
Accumulate
210
235
10,690
12,877
14,504
14.3
13.9
21.4
23.0
9.8
9.1
1.5
1.3
16.4
15.2
1.0
0.9
Ceat
Accumulate
1,268
1,450
5,129
7,524
8,624
13.0
12.7
131.1
144.3
9.7
8.8
1.8
1.5
19.8
18.6
0.8
0.7
JK Tyres
Neutral
149
-
3,380
7,455
8,056
15.0
15.0
21.8
24.5
6.8
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
140
-
841
1,488
1,681
11.7
11.9
6.4
7.2
21.9
19.6
2.3
2.1
10.8
11.4
0.8
0.7
Indag Rubber
Neutral
206
-
540
286
326
19.8
16.8
11.7
13.3
17.6
15.4
3.0
2.8
17.8
17.1
1.6
1.4
Capital Goods
ACE
Neutral
45
-
441
709
814
4.1
4.6
1.4
2.1
31.8
21.2
1.3
1.2
4.4
6.0
0.8
0.7
BEML
Buy
927
1,157
3,862
3,451
4,055
6.3
9.2
31.4
57.9
29.5
16.0
1.8
1.6
6.3
10.9
1.2
1.0
Bharat Electronics
Accumulate
1,269
1,414
30,445
8,137
9,169
16.8
17.2
58.7
62.5
21.6
20.3
3.4
3.0
44.6
46.3
2.7
2.4
Stock Watch
October 25, 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
393
-
13,019
6,511
7,514
7.9
8.7
12.9
16.3
30.5
24.1
5.5
4.8
16.7
18.5
1.8
1.5
BGR Energy
Neutral
115
-
831
16,567
33,848
6.0
5.6
7.8
5.9
14.8
19.5
0.8
0.8
4.7
4.2
0.2
0.1
BHEL
Neutral
141
-
34,572
28,797
34,742
-
2.8
2.3
6.9
61.4
20.5
1.0
1.0
1.3
4.8
0.9
0.6
Blue Star
Buy
536
634
5,113
4,283
5,077
5.9
7.3
14.9
22.1
36.0
24.2
7.0
5.9
20.4
26.4
1.2
1.0
Crompton Greaves
Neutral
77
-
4,810
5,777
6,120
5.9
7.0
3.3
4.5
23.3
17.1
1.0
1.0
4.4
5.9
0.8
0.7
Greaves Cotton
Neutral
134
-
3,261
1,755
1,881
16.8
16.9
7.8
8.5
17.1
15.7
3.4
3.2
20.6
20.9
1.6
1.4
Inox Wind
Buy
224
286
4,973
5,605
6,267
15.7
16.4
24.8
30.0
9.0
7.5
2.5
1.9
25.9
24.4
0.9
0.8
KEC International
Neutral
126
-
3,250
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
863
-
10,286
5,421
5,940
7.3
7.3
25.7
30.2
33.6
28.6
4.1
3.7
12.2
13.1
1.8
1.6
VATech Wabag
Buy
509
681
2,774
3,136
3,845
8.9
9.1
26.0
35.9
19.6
14.2
2.5
2.1
13.4
15.9
0.8
0.6
Cement
ACC
Neutral
1,567
-
29,433
11,225
13,172
13.2
16.9
44.5
75.5
35.2
20.8
3.3
3.1
11.2
14.2
2.6
2.2
Ambuja Cements
Neutral
247
-
48,946
9,350
10,979
18.2
22.5
5.8
9.5
42.5
26.0
3.6
3.2
10.2
12.5
5.2
4.5
India Cements
Neutral
157
-
4,813
4,364
4,997
18.5
19.2
7.9
11.3
19.8
13.9
1.4
1.4
8.0
8.5
1.9
1.6
JK Cement
Neutral
940
-
6,571
4,398
5,173
15.5
17.5
31.2
55.5
30.1
16.9
3.6
3.1
12.0
15.5
2.0
1.7
J K Lakshmi Cement
Accumulate
505
565
5,945
2,913
3,412
14.5
19.5
7.5
22.5
67.4
22.5
4.1
3.5
12.5
18.0
2.6
2.2
Orient Cement
Buy
179
215
3,667
2,114
2,558
18.5
20.5
8.1
11.3
22.1
15.8
3.3
2.8
9.0
14.0
2.4
1.9
UltraTech Cement
Neutral
3,977
-
109,151
25,768
30,385
21.0
23.5
111.0
160.0
35.8
24.9
4.6
4.0
13.5
15.8
4.3
3.6
Construction
ITNL
Neutral
113
-
3,729
8,946
10,017
31.0
31.6
8.1
9.1
14.0
12.5
0.5
0.5
4.2
5.0
3.7
3.5
KNR Constructions
Neutral
778
-
2,188
1,385
1,673
14.7
14.0
41.2
48.5
18.9
16.0
3.5
3.0
14.9
15.2
1.7
1.4
Larsen & Toubro
Accumulate
1,495
1,700
139,293
67,665
77,249
10.7
11.5
57.3
71.2
26.1
21.0
2.4
2.2
12.6
14.3
2.2
1.9
Gujarat Pipavav Port
Neutral
169
-
8,168
705
788
52.2
51.7
5.0
5.6
33.8
30.2
3.3
3.0
11.2
11.2
11.2
9.6
Nagarjuna Const.
Neutral
93
-
5,142
8,842
9,775
9.1
8.8
5.3
6.4
17.5
14.5
1.4
1.3
8.2
9.1
0.7
0.6
PNC Infratech
Buy
124
143
3,175
2,350
2,904
13.1
13.2
9.0
8.8
13.8
14.1
0.5
0.5
15.9
13.9
1.5
1.2
Simplex Infra
Neutral
329
-
1,628
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
517
-
760
1,801
2,219
12.7
14.6
72.1
113.9
7.2
4.5
1.3
1.1
16.8
11.9
0.4
0.3
Sadbhav Engineering
Accumulate
274
298
4,700
3,598
4,140
10.3
10.6
9.0
11.9
30.4
23.0
3.2
2.8
9.9
11.9
1.6
1.4
NBCC
Neutral
237
-
14,208
7,428
9,549
7.9
8.6
8.2
11.0
28.9
21.5
1.4
1.1
28.2
28.7
1.6
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
106
-
3,720
1,036
1,252
65.5
66.2
(8.4)
(5.6)
4.0
4.5
(22.8)
(15.9)
11.8
9.8
Stock Watch
October 25, 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
277
-
9,321
1,725
1,935
16.0
19.1
11.4
13.9
24.3
19.9
3.4
3.2
13.4
15.3
4.3
3.9
Financials
Axis Bank
Buy
521
630
124,422
46,932
53,575
3.5
3.4
32.4
44.6
16.1
11.7
2.1
1.8
13.6
16.5
-
-
Bank of Baroda
Neutral
158
-
36,475
19,980
23,178
1.8
1.8
11.5
17.3
13.8
9.2
1.6
1.3
8.3
10.1
-
-
Canara Bank
Neutral
326
-
17,680
15,225
16,836
1.8
1.8
14.5
28.0
22.5
11.6
1.6
1.3
5.8
8.5
-
-
Dewan Housing Finance Accumulate
329
350
9,599
2,225
2,688
2.9
2.9
29.7
34.6
11.1
9.5
1.8
1.5
16.1
16.8
-
-
Equitas Holdings
Buy
176
235
5,914
939
1,281
11.7
11.5
5.8
8.2
30.4
21.5
2.6
2.3
10.9
11.5
-
-
Federal Bank
Neutral
75
-
12,878
9,353
10,623
2.9
2.9
4.4
5.8
17.0
12.9
1.6
1.4
9.5
11.0
-
-
HDFC
Neutral
1,352
-
213,691
11,475
13,450
3.4
3.4
45.3
52.5
29.8
25.8
5.8
5.1
20.2
20.5
-
-
HDFC Bank
Accumulate
1,265
1,350
320,367
46,097
55,433
4.5
4.5
58.4
68.0
21.7
18.6
3.8
3.2
18.8
18.6
-
-
ICICI Bank
Neutral
285
-
165,521
39,029
45,903
3.3
3.3
16.7
16.3
17.0
17.5
2.1
1.9
10.1
12.4
-
-
LIC Housing Finance
Neutral
603
-
30,439
3,712
4,293
2.6
2.5
39.0
46.0
15.5
13.1
2.9
2.5
19.9
20.1
-
-
Punjab Natl.Bank
Neutral
147
-
31,281
23,532
23,595
2.3
2.4
6.8
12.6
21.6
11.7
3.3
2.4
3.3
6.5
-
-
RBL Bank
Accumulate
334
365
12,337
1,783
2,309
2.6
2.6
12.7
16.4
26.3
20.3
2.9
2.6
12.8
13.3
-
-
South Ind.Bank
Neutral
24
-
3,288
6,435
7,578
2.5
2.5
2.7
3.1
9.0
7.9
1.2
1.0
10.1
11.2
-
-
St Bk of India
Neutral
263
-
204,045
88,650
98,335
2.6
2.6
13.5
18.8
19.5
14.0
1.9
1.6
7.0
8.5
-
-
Union Bank
Neutral
148
-
10,184
13,450
14,925
2.3
2.3
25.5
34.5
5.8
4.3
0.9
0.7
7.5
10.2
-
-
Yes Bank
Neutral
1,309
-
55,098
8,978
11,281
3.3
3.4
74.0
90.0
17.7
14.5
3.4
2.9
17.0
17.2
-
-
FMCG
Asian Paints
Neutral
1,128
-
108,154
17,128
18,978
16.8
16.4
19.1
20.7
59.0
54.5
20.5
19.4
34.8
35.5
6.2
5.6
Britannia
Accumulate
3,307
3,626
39,677
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
962
-
26,166
4,605
5,149
23.4
23.4
23.8
26.9
40.4
35.8
22.4
17.5
64.8
66.8
5.6
5.0
Dabur India
Accumulate
283
304
49,845
8,315
9,405
19.8
20.7
8.1
9.2
35.0
30.8
9.7
8.1
31.6
31.0
5.6
5.0
GlaxoSmith Con*
Neutral
6,196
-
26,059
4,350
4,823
21.2
21.4
179.2
196.5
34.6
31.5
9.2
7.8
27.1
26.8
5.4
4.8
Godrej Consumer
Neutral
1,595
-
54,303
10,235
11,428
18.4
18.6
41.1
44.2
38.8
36.1
8.6
7.3
24.9
24.8
5.4
4.8
HUL
Neutral
849
-
183,755
35,252
38,495
17.6
17.4
20.4
21.9
41.6
38.8
34.2
30.0
82.2
77.3
5.0
4.6
ITC
Buy
241
283
291,148
40,059
44,439
39.0
39.2
9.1
10.1
26.5
23.9
7.2
6.3
27.2
26.5
6.8
6.1
Marico
Accumulate
284
300
36,583
6,430
7,349
18.8
19.5
6.4
7.7
44.3
36.8
13.4
11.3
33.2
32.5
5.5
4.8
Nestle*
Neutral
6,848
-
66,021
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
154
-
9,723
8,675
9,088
9.8
9.8
7.4
8.2
20.8
18.8
2.4
2.3
7.9
8.1
1.0
1.0
Procter & Gamble
Neutral
7,056
-
22,904
2,939
3,342
23.2
23.0
146.2
163.7
48.3
43.1
108.1
103.6
25.3
23.5
7.3
6.4
Hygiene
Stock Watch
October 25, 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
811
1,000
114,370
49,242
57,168
20.5
20.5
55.7
64.1
14.6
12.7
3.0
2.3
20.3
17.9
2.2
1.8
Infosys
Buy
1,029
1,249
236,356
68,350
77,326
27.0
27.0
62.5
69.4
16.5
14.8
3.5
3.2
21.3
21.6
2.9
2.5
TCS
Buy
2,428
3,004
478,390
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
3.2
Tech Mahindra
Buy
428
700
41,575
30,347
33,685
17.0
17.0
37.5
41.3
11.4
10.4
2.5
2.2
21.8
20.7
1.1
0.9
Wipro
Buy
484
680
117,586
51,631
55,822
21.7
17.9
35.9
36.9
13.5
13.1
2.8
2.6
19.0
18.1
2.0
1.8
Media
D B Corp
Neutral
391
-
7,180
2,297
2,590
27.4
28.2
21.0
23.4
18.6
16.7
4.3
3.8
23.7
23.1
2.9
2.5
HT Media
Neutral
92
-
2,137
2,693
2,991
12.6
12.9
7.9
9.0
11.6
10.2
1.0
0.9
7.8
8.3
0.4
0.2
Jagran Prakashan
Accumulate
202
225
6,587
2,355
2,635
28.0
28.0
10.8
12.5
18.7
16.1
4.0
3.5
21.7
21.7
2.8
2.5
Sun TV Network
Neutral
533
-
20,999
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
303
-
2,225
1,016
1,138
24.3
25.2
27.3
30.1
11.1
10.1
2.1
1.9
16.2
15.8
1.5
1.3
Ventures
TV Today Network
Accumulate
339
363
2,023
637
743
27.5
27.5
18.4
21.4
18.5
15.9
3.2
2.7
17.4
17.2
2.8
2.3
Metals & Mining
Coal India
Neutral
321
-
202,755
84,638
94,297
21.4
22.3
24.5
27.1
13.1
11.9
5.5
5.2
42.6
46.0
1.9
1.7
Hind. Zinc
Neutral
252
-
106,668
14,252
18,465
55.9
48.3
15.8
21.5
16.0
11.7
2.6
2.3
17.0
20.7
7.5
5.8
Hindalco
Neutral
151
-
31,171
107,899
112,095
7.4
8.2
9.2
13.0
16.4
11.6
0.8
0.8
4.8
6.6
0.8
0.8
JSW Steel
Neutral
1,710
-
41,338
53,201
58,779
16.1
16.2
130.6
153.7
13.1
11.1
1.8
1.5
14.0
14.4
1.5
1.3
NMDC
Neutral
123
-
48,568
6,643
7,284
44.4
47.7
7.1
7.7
17.3
15.9
1.5
1.5
8.8
9.2
5.1
4.6
SAIL
Neutral
50
-
20,506
47,528
53,738
(0.7)
2.1
(1.9)
2.6
19.1
0.5
0.5
(1.6)
3.9
1.3
1.2
Vedanta
Neutral
202
-
59,991
71,744
81,944
19.2
21.7
13.4
20.1
15.1
10.1
1.3
1.2
8.4
11.3
1.2
0.9
Tata Steel
Neutral
426
-
41,393
121,374
121,856
7.2
8.4
18.6
34.3
22.9
12.4
1.4
1.3
6.1
10.1
1.0
1.0
Oil & Gas
Cairn India
Neutral
231
-
43,375
9,127
10,632
4.3
20.6
8.8
11.7
26.3
19.8
0.8
0.8
3.3
4.2
6.2
5.2
GAIL
Neutral
444
-
56,301
56,220
65,198
9.3
10.1
27.1
33.3
16.4
13.3
1.5
1.4
9.3
10.7
1.2
1.0
ONGC
Neutral
293
-
250,590
137,222
152,563
15.0
21.8
19.5
24.1
15.0
12.2
1.3
1.2
8.5
10.1
2.1
1.9
Indian Oil Corp
Neutral
327
-
158,909
373,359
428,656
5.9
5.5
54.0
59.3
6.1
5.5
0.9
0.8
16.0
15.6
0.6
0.5
Reliance Industries
Neutral
1,064
-
344,850
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
679
-
12,804
3,483
4,083
20.2
21.4
24.3
30.4
28.0
22.3
6.4
5.1
25.5
25.3
3.6
3.0
Aurobindo Pharma
Accumulate
818
877
47,861
15,720
18,078
23.7
23.7
41.4
47.3
19.8
17.3
5.1
4.0
29.6
26.1
3.3
2.8
Sanofi India*
Neutral
4,317
-
9,941
2,357
2,692
17.3
17.3
153.5
169.2
28.1
25.5
4.8
3.9
25.8
28.4
3.9
3.2
Cadila Healthcare
Neutral
389
-
39,854
11,126
13,148
22.0
22.0
17.1
20.0
22.8
19.5
5.9
4.7
28.8
26.6
3.6
2.9
Cipla
Sell
585
490
47,013
15,378
18,089
17.4
18.4
21.6
27.2
27.1
21.5
3.5
3.1
13.7
15.2
3.3
2.7
Stock Watch
October 25, 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
3,090
-
51,194
16,043
18,119
23.1
24.7
126.0
157.8
24.5
19.6
3.6
3.1
15.7
17.1
3.1
2.8
Dishman Pharma
Sell
238
45
3,848
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
2,947
-
24,962
3,528
3,811
16.6
18.8
51.8
59.4
56.9
49.6
15.2
15.2
26.3
30.6
6.9
6.4
Indoco Remedies
Sell
304
225
2,801
1,112
1,289
18.2
18.2
13.2
15.6
23.0
19.5
4.1
3.5
19.2
19.2
2.6
2.3
Ipca labs
Neutral
633
-
7,992
3,303
3,799
15.3
15.3
17.3
19.7
36.6
32.2
3.2
2.9
9.1
9.4
2.5
2.2
Lupin
Buy
1,530
1,809
68,960
15,912
18,644
26.4
26.7
58.1
69.3
26.3
22.1
5.1
4.2
21.4
20.9
4.4
3.6
Sun Pharma
Buy
747
944
179,816
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
-
22,624
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
151
-
124,878
86,605
95,545
17.5
20.8
11.8
13.4
12.8
11.3
1.3
1.2
10.5
11.1
2.8
2.8
Power Grid
Neutral
176
-
92,102
25,763
29,762
74.3
73.1
14.8
17.3
11.9
10.2
1.9
1.6
16.9
17.5
7.8
7.5
Real Estate
MLIFE
Buy
434
522
1,781
1,152
1,300
22.7
24.6
29.9
35.8
14.5
12.1
1.1
1.0
7.6
8.6
2.3
1.9
Telecom
Bharti Airtel
Neutral
307
-
122,520
105,086
114,808
34.5
34.7
12.2
16.4
25.1
18.7
1.7
1.6
6.8
8.4
2.1
1.8
Idea Cellular
Neutral
77
-
27,726
40,133
43,731
37.2
37.1
6.4
6.5
12.0
11.9
1.0
0.9
8.2
7.6
1.7
1.5
zOthers
Abbott India
Neutral
4,727
-
10,045
3,153
3,583
14.1
14.4
152.2
182.7
31.1
25.9
152.5
130.2
25.6
26.1
2.9
2.5
Bajaj Electricals
Buy
264
306
2,667
5,099
5,805
5.6
5.9
11.4
14.6
23.2
18.1
3.1
2.8
13.4
15.1
0.5
0.5
Finolex Cables
Neutral
439
-
6,718
2,883
3,115
12.0
12.1
14.2
18.6
30.9
23.6
16.5
14.4
15.8
14.6
2.0
1.8
Goodyear India*
Neutral
795
-
1,834
1,598
1,704
10.4
10.2
49.4
52.6
16.1
15.1
74.3
65.2
18.2
17.0
0.8
117.4
Hitachi
Neutral
1,554
-
4,227
2,081
2,433
8.8
8.9
33.4
39.9
46.5
39.0
37.6
31.3
22.1
21.4
2.0
1.7
Jyothy Laboratories
Neutral
360
-
6,543
1,440
2,052
11.5
13.0
8.5
10.0
42.4
36.0
10.3
9.5
18.6
19.3
4.8
3.4
Page Industries
Neutral
16,867
-
18,813
2,450
3,124
20.1
17.6
299.0
310.0
56.4
54.4
375.7
286.8
47.1
87.5
7.7
6.1
Relaxo Footwears
Neutral
435
-
5,219
2,085
2,469
9.2
8.2
7.6
8.0
57.5
54.7
22.3
19.0
17.9
18.8
2.6
2.2
Siyaram Silk Mills
Accumulate
1,523
1,714
1,427
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
648
-
1,140
1,440
1,537
9.2
9.0
40.6
42.6
16.0
15.2
40.8
37.1
12.3
11.6
0.8
0.7
TVS Srichakra
Neutral
3,801
-
2,910
2,304
2,614
13.7
13.8
231.1
266.6
16.4
14.3
427.0
336.3
33.9
29.3
1.3
1.1
HSIL
Neutral
349
-
2,525
2,384
2,515
15.8
16.3
15.3
19.4
22.8
18.0
22.7
19.5
7.8
9.3
1.2
1.1
Kirloskar Engines India
Neutral
350
-
5,060
2,554
2,800
9.9
10.0
10.5
12.1
33.3
28.9
13.9
13.2
10.7
11.7
1.6
1.4
Ltd
M M Forgings
Neutral
448
-
540
546
608
20.4
20.7
41.3
48.7
10.9
9.2
61.3
54.3
16.6
17.0
0.8
0.7
Banco Products (India)
Neutral
232
-
1,661
1,353
1,471
12.3
12.4
14.5
16.3
16.0
14.3
22.1
19.9
14.5
14.6
1.2
125.6
Competent Automobiles Neutral
205
-
126
1,137
1,256
3.1
2.7
28.0
23.6
7.3
8.7
39.4
35.6
14.3
11.5
0.1
0.1
Stock Watch
October 25, 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
1,783
-
2,661
1,995
2,165
10.7
10.4
69.8
80.6
25.6
22.1
101.9
88.5
16.6
16.5
1.3
1.2
Visaka Industries
Neutral
224
-
356
1,051
1,138
10.3
10.4
21.0
23.1
10.7
9.7
28.7
26.9
9.0
9.2
0.6
0.6
Transport Corporation of
Neutral
179
-
1,372
2,671
2,911
8.5
8.8
13.9
15.7
12.9
11.5
1.8
1.6
13.7
13.8
0.6
0.6
India
Elecon Engineering
Neutral
67
-
729
1,482
1,660
13.7
14.5
3.9
5.8
17.2
11.5
4.0
3.7
7.8
10.9
0.8
0.7
Surya Roshni
Neutral
239
-
1,047
3,342
3,625
7.8
7.5
17.3
19.8
13.8
12.1
26.3
21.1
10.5
10.8
0.6
0.5
MT Educare
Neutral
138
-
549
366
417
17.7
18.2
9.4
10.8
14.7
12.8
3.3
2.8
22.2
22.3
1.4
1.2
Radico Khaitan
Neutral
139
-
1,854
1,659
1,802
13.0
13.2
6.3
7.4
22.0
18.9
1.9
1.8
8.6
9.3
1.6
1.4
Garware Wall Ropes
Neutral
535
-
1,171
873
938
12.9
13.1
30.9
34.9
17.3
15.3
2.7
2.3
15.7
15.2
1.2
1.1
Wonderla Holidays
Neutral
407
-
2,297
287
355
38.0
40.0
11.3
14.2
36.0
28.6
5.2
4.5
21.4
23.9
7.7
6.2
Linc Pen & Plastics
Neutral
262
-
387
382
420
9.3
9.5
13.5
15.7
19.5
16.7
3.3
2.9
17.1
17.3
1.1
1.0
The Byke Hospitality
Neutral
182
-
731
287
384
20.5
20.5
7.6
10.7
24.0
17.0
5.0
4.1
20.7
23.5
2.6
1.9
Interglobe Aviation
Neutral
932
-
33,583
21,122
26,005
14.5
27.6
110.7
132.1
8.4
7.1
50.4
36.0
168.5
201.1
1.6
1.2
Coffee Day Enterprises
Neutral
225
-
4,631
2,964
3,260
20.5
21.2
4.7
8.0
-
28.1
2.6
2.4
5.5
8.5
2.0
1.8
Ltd
Navneet Education
Neutral
101
-
2,396
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
200
265
2,850
408
612
42.9
42.3
6.8
11.5
29.5
17.4
2.0
1.8
6.9
10.5
7.9
5.3
UFO Moviez
Neutral
451
-
1,245
619
685
33.2
33.4
30.0
34.9
15.1
12.9
2.1
1.8
13.8
13.9
1.7
1.4
VRL Logistics
Neutral
319
-
2,913
1,902
2,119
16.7
16.6
14.6
16.8
21.9
19.0
4.8
4.2
21.9
22.2
1.6
1.4
Team Lease Serv.
Neutral
995
-
1,701
3,229
4,001
1.5
1.8
22.8
32.8
43.7
30.3
4.7
4.1
10.7
13.4
0.4
0.3
S H Kelkar & Co.
Neutral
306
-
4,427
1,036
1,160
15.1
15.0
6.1
7.2
50.1
42.6
5.4
4.9
10.7
11.5
4.1
3.7
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
356
-
7,274
1,873
2,166
11.5
11.7
2.6
4.0
134.6
89.8
8.3
7.5
6.1
8.3
4.0
3.4
Manpasand Bever.
Neutral
729
-
4,171
836
1,087
19.6
19.4
16.9
23.8
43.2
30.6
5.2
4.5
12.0
14.8
4.7
3.6
Parag Milk Foods
Neutral
324
-
2,726
1,919
2,231
9.3
9.6
9.5
12.9
34.3
25.1
5.3
4.4
15.5
17.5
1.6
1.3
Mirza International
Buy
95
113
1,145
1,024
1,148
18.0
18.0
6.9
8.0
13.8
11.9
2.3
2.0
16.6
16.2
1.3
1.2
Asian Granito
Buy
275
351
829
1,118
1,220
11.8
12.0
13.0
16.0
21.2
17.3
2.1
1.8
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 24, 2016
Market Outlook
October 25, 2016
Research Team Tel: 022 - 39357800
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India
Limited,Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with
CDSL and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a
registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or
co-managed public offering of securities of the company covered by Analyst during the past twelve months.
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