Market Outlook
October 27, 2017
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open flat tracking global indices and SGX Nifty.
BSE Sensex
0.3
105
33,147
The U.S. Index opened positive and traded in narrow range, the major averages
Nifty
0.5
48
10,344
eventually ended Thursday's trading on the unchanged line. The House of
Mid Cap
0.5
85
16,334
Representatives also passed a budget blueprint, paving the way for the Senate to
Small Cap
0.6
97
17,257
eventually pass a tax-reform package by a simple majority. The Dow Jones Industrial
Bankex
0.0
1
28,330
Average DJIA, rose 0.3%, to close at 23,401. The S&P 500 SPX, gained 0.1%, at
2,560, while the Nasdaq Composite Index COMP, edged down 0.1%, at 6,557.
NASDAQ primarily weighed down by the biotechnology sector, which corrected
Global Indices
Chg (%)
(Pts)
(Close)
2.32% on Thursday.
Dow Jones
0.3
71
23,401
Nasdaq
(0.1)
(7)
6,557
U.K. stocks closed higher on Thursday, tracking a positive mood across Europe after
FTSE
0.5
39
7,487
the European Central Bank extended its bond-buying program and hinted rates will
stay low at least until 2019. The FTSE 100 index rose 0.5% to end at 7,487.
Nikkei
0.9
206
21,946
Hang Seng
0.9
267
28,469
The India share opened on negative note but rose in the last leg of the trade to end
Shanghai Com
0.2
6
3,413
the day at fresh highs at October expiry with Nifty50 surpassing 10,350-mark.
Traders are waiting for big event today such as ECB Outcome, ICICI Bank, ITC &
Advances / Declines
BSE
NSE
Maruti Suzuki Q2 Earnings. At the closing bell, BSE Sensex settled at new high of
33,147, up 0.32% for the day. While, Nifty50 closed up by0.47% to finish at
Advances
1,374
922
10,344.
Declines
1,343
801
Unchanged
151
60
News Analysis
YES Bank under-reported `6k-cr NPAs in FY17, Q2 PAT up 25%
Volumes (` Cr)
Detailed analysis on Pg2
BSE
5,131
Investor’s Ready Reckoner
NSE
52,022
Key Domestic & Global Indicators
Net Inflows (` Cr)
Net
Mtd
Ytd
Stock Watch: Latest investment recommendations on 150+ stocks
Refer Pg5 onwards
FII
6,812
349
36,879
MFs
691
8,851
95,195
Top Picks
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
Top Gainers
Price (`)
Chg (%)
Blue Star
Capital Goods Accumulate
796
867
9.0
Polaris
291
20.0
Dewan Housing Finance
Financials
Accumulate
603
670
11.0
Sail
77
14.4
Asian Granito
Other
Buy
484
570
17.7
Dbl
906
12.2
Navkar Corporation
Other
Buy
194
265
36.5
KEI Industries
Capital Goods
Buy
326
380
16.5
Ifci
26
8.4
More Top Picks on Pg4
Adanipower
33
7.8
Key Upcoming Events
Previous
Consensus
Top Losers
Price (`)
Chg (%)
Date
Region
Event Description
Reading
Expectations
Jpassociat
18
(9.9)
Oct 27
Euro Zone Euro-Zone Consumer Confidence
(1.00)
Ucobank
34
(4.8)
Oct 30
US
GDP Qoq (Annualised)
3.10
2.60
Oct 31
China
PMI Manufacturing
52.40
52.20
Tatacomm
678
(4.8)
Oct 31
UK
PMI Manufacturing
55.90
56.20
Mphasis
672
(4.3)
Oct 31
US
Consumer Confidence
119.80
120.75
Coromandel
488
(4.3)
More Events on Pg7
As on October, 26 2017
Market Outlook
October 27, 2017
News Analysis
YES Bank under-reported `6k-cr NPAs in FY17, Q2 PAT up 25%
Yes bank has reported stellar Q2 numbers, PAT saw jump of 25%, backed by
growth in net interest income and fees. Its net interest income for Q2 rose by 33.5
per cent to `18,885cr. Other income, which includes fees and commissions rose
by
35.4 per cent to
`1,248cr. Total advances grew by
34.9 per cent to
`1,48,675cr as of September 30, 2017.
The only concern was Asset quality, as per the RBI’s assessment GNPA are under
reported to the tune of `4176cr and `6355cr for FY16 & FY17.
Economic and Political News
Pension, insurance funds can finance infrastructure: Amitabh Kant
Government tightens screws on assets owned by deregistered companies
5 exclusive tourism zones under PPP mode on cards
Bank recap plan to help deal with bloated balance sheets: S&P
Corporate News
Bajaj Auto said it is unaffected by the Karnataka High Court ban.
Bad loans at Yes Bank double as regulator detects under-reporting
NDTV: Income tax department attaches the entire 29.12 % holding of
promoter RRPR Holding
Market Outlook
October 27, 2017
Quarterly Bloomberg Brokers Consensus Estimate
IOC Ltd - Oct 27, 2017
Particulars ( ` cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY18
q-o-q (%)
Sales
1,04,500
80,370
30.1
1,05,434
(0.9)
EBIDTA
10,944
5,772
89.6
7,999
36.8
%
10.4
7.2
7.6
PAT
6,079
3,121
94.7
4,548
33.6
ICICI Bank - Oct 27, 2017
Particulars ( `cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY18
q-o-q (%)
PAT
2,570
3,102
(17.2)
2,049
25.4
Canara Bank - Oct 27, 2017
Particulars ( `cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY18
q-o-q (%)
PAT
372
357
4.2
252
47.7
Maruti Ltd - Oct 27, 2017
Particulars ( ` cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY18
q-o-q (%)
Sales
22,020
17,842
23.4
17,545
25.5
EBIDTA
3,148
3,037
3.7
2,331
35.1
%
14.3
17.1
13.3
PAT
2,227
2,398
(7.1)
1,556
43.1
ITC Ltd - Oct 27, 2017
Particulars ( ` cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY18
q-o-q (%)
Sales
9,874
9,661
2.2
9,954
(0.8)
EBIDTA
3,730
3,630
2.8
3,746
(0.4)
%
37.8
37.6
37.7
PAT
2,598
2,500
0.4
2,560
0.02
Market Outlook
October 27, 2017
Top Picks ★★★★★
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
22,323
1,867
2,079
11.4
more products in USA, which bodes for its international
business.
We expect the company would report strong profitability
Asian Granito
1,457
484
570
17.7
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
7,618
796
867
9.0
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
18,921
603
670
11.0
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
7,666
127
180
41.9
Increasing share of CASA will help in NIM
improvement.
High order book execution in EPC segment, rising B2C
KEI Industries
2,537
326
380
16.5
sales and higher exports to boost the revenues and
profitability
Expected to benefit from the lower capex requirement
Music Broadcast
2,166
380
434
14.3
and 15 year long radio broadcast licensing.
Massive capacity expansion along with rail advantage
Navkar Corporation
2,769
194
265
36.5
at ICD as well CFS augur well for the company
Strong brands and distribution network would boost
Siyaram Silk Mills
2,720
580
620
6.8
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
2,119
355
435
22.4
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
2,43,975
8,077
8,658
7.2
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
2,684
498
655
31.4
year; change in borrowing mix will help in NIM
improvement..
Source: Company, Angel Research
Market Outlook
October 27, 2017
Key Upcoming Events
Result Calendar
D ate
C ompany
October 27, 2017
Maruti, J & K Bank, ICICI Bank, Canara Bank, ITC, PVR, IOC, Styrolution
October 28, 2017
ONGC
Source: Bloomberg, Angel Research
Global economic events release calendar
Bl oomberg Data
D ate
Time
C ountry
Event Description
Unit
Period
L ast Reporte d
E stimate d
Oct 27, 2017
3:30 PMEuro Zone Euro-Zone Consumer Confidence
Value
Oct F
(1.00)
Oct 30, 2017
6:00 PMUS
GDP Qoq (Annualise d)
% Change
3Q A
3.10
2.60
Oct 31, 2017
6:30 AMChina
PMI Manufacturing
Value
Oct
52.40
52.20
3:00 PMUK
PMI Manufacturing
Value
Oct
55.90
56.20
7:30 PMUS
Consumer Confidence
S.A./ 1985=100
Oct
119.80
120.75
Nov 01, 2017
3:30 PMEuro Zone Euro-Zone GDP s.a. (QoQ)
% Change
3Q A
0.70
11: 30 PMUS
FOMC rate decision
%
Nov 1
1.25
1.25
Nov 02, 2017
2:25 PMGermany PMI Manufacturing
Value
Oct F
60.50
2:25 PMGermany Unempl oyment change (000's)
Thousands
Oct
(22.00)
5:30 PMUK
BOE Announce s rate s
% Ratio
Nov 2
0.25
0.50
Nov 03, 2017
6:00 PMUS
Change in N onfarm payrolls
Thousands
Oct
(33.00)
308.00
6:00 PMUS
Unnemployment rate
%
Oct
4.20
4.20
Nov 06, 2017
2:25 PMGermany PMI Services
Value
Oct F
55.20
Nov 08, 2017
China
Exports YoY%
% Change
Oct
8.10
Nov 09, 2017
7:00 AMChina
Consumer Price Index (YoY)
% Change
Oct
1.60
Source: Bloomberg, Angel Research
Market Outlook
October 27, 2017
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
10.0
6.0
9.1
5.1
8.8
9.0
5.0
4.4
4.3
8.0
7.9
4.2
7.6
7.5
8.0
7.3
7.2
4.0
3.5
7.0
3.2
2.9
7.0
6.1
6.1
3.0
2.4
5.7
6.0
2.0
1.2
0.9
5.0
1.0
4.0
-
3.0
(1.0)
(0.2)
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
(%)
4.5
4.2
54.0
3.9
4.0
3.6
3.7
52.0
3.4
3.3
3.3
3.5
3.2
3.0
50.0
3.0
2.2
2.4
48.0
2.5
2.0
46.0
1.5
1.5
44.0
1.0
42.0
0.5
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
5.50
40.0
5.00
30.0
4.50
20.0
4.00
10.0
3.50
0.0
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
Market Outlook
October 27, 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
October 27, 2017
Exhibit 4: Relative performance of indices across globe
Returns (%)
C ountry
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
75,896
2.0
16.7
18.5
Russia
Micex
2,047
(1.2)
6.8
3.3
India
Nifty
10,344
3.8
3.8
18.8
China
Shanghai Composite
3,408
1.4
5.0
10.7
South Africa
Top 40
52,274
7.1
7.6
15.8
Mexico
Mexbol
48,987
(2.7)
(4.3)
2.0
Indonesia
LQ45
991
2.0
2.4
8.1
Malaysia
KLCI
1,737
(1.8)
(1.3)
4.2
Thailand
SET 50
1,086
1.5
8.8
15.6
USA
Dow Jones
23,401
5.0
7.4
28.8
UK
FTSE
7,487
2.8
0.6
7.0
Japan
Nikkei
21,740
6.6
8.9
26.1
Germany
DAX
13,133
4.3
7.5
24.8
France
CAC
5,455
3.5
6.3
23.7
Source: Bloomberg, Angel Research p68in4
Stock Watch
October 27, 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
Sell
249
209
4,842
1,873
2,099
15.0
15.0
9.5
10.5
26.2
23.7
4.0
3.6
15.8
16.0
2.5
2.2
United Phosphorus
Neutral
813
-
41,291
18,922
21,949
18.0
18.5
36.2
45.6
22.5
17.8
4.7
3.9
22.7
23.8
2.3
2.0
Auto & Auto Ancillary
Ashok Leyland
Neutral
131
-
38,411
23,339
27,240
10.1
10.8
4.7
6.2
28.2
21.1
5.6
5.0
20.0
23.6
1.6
1.4
Bajaj Auto
Neutral
3,279
-
94,881
23,936
27,955
19.5
20.1
142.7
167.3
23.0
19.6
5.0
4.5
21.8
22.8
3.6
3.0
Bharat Forge
Buy
663
875
30,857
7,637
8,755
21.7
23.2
36.1
47.3
18.4
14.0
3.3
2.8
18.5
20.8
3.9
3.3
Eicher Motors
Neutral
31,495
-
85,737
19,043
22,837
19.5
19.9
835.4
1,019.0
37.7
30.9
14.1
10.9
40.9
37.8
4.4
3.6
Gabriel India
Neutral
195
-
2,794
1,782
2,033
9.7
10.2
7.1
8.9
27.4
22.0
5.5
4.7
21.0
22.2
1.5
1.3
Hero Motocorp
Accumulate
3,762
4,129
75,133
32,239
36,878
16.0
15.6
184.4
206.5
20.4
18.2
6.4
5.6
31.3
30.7
2.1
1.8
Jamna Auto Industries Neutral
61
-
2,448
1,441
1,662
14.4
14.8
13.9
17.6
4.4
3.5
1.2
1.0
30.0
31.0
1.7
1.4
Mahindra and Mahindra Neutral
1,371
-
85,180
46,971
53,816
13.6
14.0
67.7
79.8
20.3
17.2
2.9
2.6
15.0
15.9
1.7
1.4
Maruti
Accumulate
8,077
8,658
243,975
81,825
101,245
15.0
15.0
283.5
356.0
28.5
22.7
6.2
5.1
21.9
22.4
2.7
2.1
Minda Industries
Neutral
833
-
7,196
4,328
5,084
11.0
11.9
27.3
36.4
30.6
22.9
6.5
5.1
23.1
25.6
1.7
1.5
Motherson Sumi
Neutral
356
-
74,870
55,937
64,445
10.8
11.4
16.9
21.1
21.0
16.9
4.7
4.8
25.2
25.4
1.4
1.2
Tata Motors
Neutral
419
-
121,081
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
721
-
34,235
13,992
16,216
9.0
9.4
17.1
20.3
42.3
35.5
11.2
8.7
29.7
27.7
2.4
2.0
Amara Raja Batteries
Buy
691
858
11,796
6,140
7,122
14.3
15.6
29.3
39.0
23.6
17.7
4.0
3.4
17.1
19.0
1.9
1.6
Exide Industries
Neutral
206
-
17,548
8,689
9,854
15.1
15.2
9.7
11.0
21.4
18.8
3.8
3.3
15.7
16.1
1.8
1.5
Apollo Tyres
Neutral
239
-
12,161
15,739
17,326
13.3
14.6
20.4
26.7
11.7
9.0
1.4
1.3
20.4
26.7
1.0
0.9
Ceat
Neutral
1,672
-
6,762
6,661
7,717
11.1
14.2
116.2
178.2
14.4
9.4
2.5
2.1
15.2
21.3
1.1
1.0
JK Tyres
Neutral
145
-
3,296
8,318
9,239
16.2
16.4
21.0
27.5
6.9
5.3
1.4
1.1
19.1
20.4
0.8
0.7
Swaraj Engines
Neutral
2,020
-
2,509
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
264
-
1,585
1,855
2,135
11.6
11.8
10.3
14.7
25.8
18.0
3.9
3.4
15.8
19.1
1.1
0.9
Capital Goods
BEML
Neutral
1,702
-
7,087
4,286
5,194
7.1
8.2
42.9
58.1
39.7
29.3
3.3
3.0
7.6
8.7
1.7
1.4
Bharat Electronics
Neutral
170
-
41,732
10,258
12,470
19.6
19.5
7.3
8.6
23.3
19.8
0.5
0.4
20.4
21.9
3.6
2.9
Voltas
Neutral
534
-
17,669
6,778
8,004
9.6
11.0
17.1
22.4
31.2
23.8
7.5
6.5
17.7
19.8
2.3
1.9
BHEL
Neutral
96
-
35,411
33,200
39,167
6.8
9.5
6.2
11.2
15.6
8.6
0.7
0.7
4.6
8.0
0.6
0.5
Blue Star
Accumulate
796
867
7,618
5,220
6,207
6.3
6.6
16.8
22.3
47.3
35.7
9.4
8.3
19.9
23.3
1.4
1.2
CG Power and Industrial
Neutral
82
-
5,149
6,555
7,292
7.5
7.5
-
0.8
8,215.0
102.7
1.3
1.3
0.1
1.2
0.9
0.8
Solutions
Greaves Cotton
Neutral
130
-
3,166
1,778
1,993
14.7
15.1
8.1
9.1
16.0
14.3
3.6
3.4
21.8
23.6
1.5
1.4
Stock Watch
October 27, 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
Buy
294
350
7,552
9,779
11,113
9.4
9.8
14.2
18.2
20.7
16.1
4.0
3.3
21.1
22.1
1.0
0.9
KEI Industries
Buy
326
380
2,537
3,001
3,391
10.0
10.0
13.0
16.1
25.1
20.2
4.6
3.8
18.2
18.7
1.0
0.9
Thermax
Neutral
985
-
11,740
4,125
4,747
10.3
10.8
26.7
31.5
36.9
31.3
4.1
3.8
11.2
12.0
2.6
2.2
VATech Wabag
Accumulate
598
681
3,265
3,867
4,126
9.6
10.0
34.9
39.8
17.1
15.0
2.8
2.4
17.7
17.5
0.9
0.8
Cement
ACC
Neutral
1,784
-
33,495
12,255
13,350
13.5
14.3
58.0
66.2
30.8
26.9
3.6
3.4
11.5
12.2
2.7
2.5
Ambuja Cements
Neutral
276
-
54,834
10,250
11,450
17.5
19.0
7.2
8.3
38.4
33.3
2.8
2.6
7.0
7.8
5.1
4.5
India Cements
Neutral
196
-
6,038
6,135
6,750
14.8
15.2
8.5
11.5
23.1
17.0
1.1
1.1
4.8
6.2
1.3
1.2
JK Cement
Neutral
998
-
6,976
4,150
4,775
19.2
20.0
49.0
63.5
20.4
15.7
3.2
2.8
17.0
18.5
2.1
1.8
J K Lakshmi Cement
Neutral
439
-
5,171
3,422
3,757
15.5
17.0
13.5
23.2
32.6
18.9
3.4
2.9
10.8
15.5
1.9
1.7
Orient Cement
Neutral
166
-
3,400
2,215
3,233
16.8
17.0
5.9
6.9
28.1
24.1
2.2
2.0
10.8
10.1
2.5
1.7
UltraTech Cement
Neutral
4,488
-
123,219
28,250
35,150
20.2
23.5
77.5
122.2
57.9
36.7
4.9
4.4
9.6
14.8
4.8
3.9
Construction
KNR Constructions
Neutral
252
-
3,544
1,846
2,203
14.5
14.5
12.1
13.7
20.8
18.5
1.1
1.0
17.5
16.7
2.0
1.6
Larsen & Toubro
Neutral
1,225
-
171,518
95,787
109,476
10.2
11.6
44.5
50.8
27.6
24.1
3.5
3.2
12.9
13.1
2.3
2.1
Gujarat Pipavav Port
Neutral
140
-
6,746
739
842
61.6
62.7
5.1
6.2
27.4
22.7
3.4
3.3
12.7
14.9
8.6
7.4
PNC Infratech
Neutral
181
-
4,645
2,040
2,935
13.0
13.0
6.4
9.0
28.3
20.1
0.7
0.7
9.7
12.2
2.3
1.6
Simplex Infra
Neutral
526
-
2,603
6,012
6,619
11.6
11.7
21.1
31.0
25.0
17.0
1.7
1.6
6.5
8.6
1.0
0.9
Sadbhav Engineering
Neutral
319
-
5,468
3,823
4,426
10.7
10.8
10.3
11.8
30.9
27.0
3.7
3.3
10.1
10.5
1.7
1.5
NBCC
Neutral
257
-
23,099
9,099
12,706
6.4
6.4
7.3
9.6
35.3
26.8
1.6
1.2
27.5
30.5
2.4
1.7
MEP Infra
Neutral
100
-
1,627
2,403
2,910
18.3
16.8
2.4
6.1
42.5
16.5
16.1
10.9
35.2
55.8
1.8
1.5
SIPL
Neutral
107
-
3,774
2,060
2,390
46.8
47.7
(5.8)
(3.1)
4.0
4.6
(14.2)
(2.3)
6.6
6.2
Engineers India
Neutral
169
-
11,415
1,795
2,611
21.1
22.4
5.9
8.1
28.7
20.9
2.1
2.0
12.9
16.1
4.7
3.1
Financials
Axis Bank
Buy
484
580
116,140
32,558
35,843
3.5
3.2
27.8
41.0
17.4
11.8
1.9
1.7
11.4
14.9
-
-
Bank of Baroda
Neutral
185
-
42,708
22,533
26,079
2.4
2.4
12.0
20.9
15.4
8.9
1.0
1.0
6.6
11.0
-
-
Canara Bank
Neutral
423
-
25,289
17,925
20,235
2.0
2.1
18.5
36.5
22.9
11.6
0.9
0.8
3.4
6.2
-
-
Can Fin Homes
Buy
499
2,128
6,636
586
741
3.5
3.5
107.8
141.0
4.6
3.5
1.0
0.8
24.1
25.6
-
-
Cholamandalam Inv. &
Accumulate
1,114
1,230
17,408
2,826
3,307
6.3
6.3
53.7
64.6
20.8
17.3
3.5
3.0
18.3
18.9
-
-
Fin. Co.
Dewan Housing Finance Accumulate
603
670
18,921
2,676
3,383
2.4
2.7
37.4
49.7
16.1
12.2
2.1
1.9
13.8
16.2
-
-
Equitas Holdings
Buy
146
235
4,950
1,125
1,380
9.6
9.8
1.5
6.0
97.4
24.4
2.2
2.1
2.4
8.2
-
-
Federal Bank
Neutral
119
-
23,240
4,896
5,930
2.8
3.1
5.4
7.6
22.2
15.8
1.9
1.7
8.5
11.0
-
-
Stock Watch
October 27, 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
498
655
2,684
376
477
3.6
3.7
33.0
40.0
15.1
12.5
2.7
2.3
20.0
23.0
-
-
HDFC Bank
Neutral
1,798
-
464,134
55,236
63,253
4.5
4.4
68.9
82.4
26.1
21.8
4.5
3.8
18.7
18.5
-
-
ICICI Bank
Accumulate
299
315
192,003
42,361
51,378
3.6
3.9
18.4
25.7
16.3
11.6
1.8
1.7
11.3
15.0
-
-
Karur Vysya Bank
Buy
127
180
7,666
3,289
3,630
3.7
3.9
10.8
14.1
11.7
9.0
1.4
1.3
12.5
14.7
-
-
LIC Housing Finance
Neutral
616
-
31,065
4,895
6,332
3.4
3.7
50.7
66.8
12.1
9.2
2.4
2.0
21.7
23.8
-
-
Punjab Natl.Bank
Neutral
213
-
45,368
23,708
25,758
2.1
2.1
5.9
16.4
36.3
13.0
1.1
1.0
3.0
8.3
-
-
RBL Bank
Neutral
531
-
21,919
2,309
2,888
2.6
2.5
16.4
19.1
32.4
27.8
4.1
3.6
13.3
13.8
-
-
Repco Home Finance
Buy
618
825
3,866
496
597
4.4
4.2
38.5
48.7
16.1
12.7
2.9
2.4
19.6
20.6
-
-
South Ind.Bank
Neutral
31
-
5,648
3,195
3,567
3.0
3.1
3.0
3.8
10.4
8.2
1.0
0.9
10.5
11.9
-
-
St Bk of India
Neutral
321
-
276,787
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
186
-
13,544
14,650
16,225
2.3
2.3
23.1
32.5
8.1
5.7
0.6
0.6
7.1
9.2
-
-
Yes Bank
Neutral
332
-
75,964
11,088
13,138
3.0
2.9
84.0
99.3
4.0
3.3
0.6
0.5
16.3
16.8
-
-
FMCG
Akzo Nobel India
Neutral
1,827
-
8,760
3,164
3,607
13.8
13.7
58.6
67.9
31.2
26.9
7.7
6.8
24.5
25.1
2.6
2.3
Asian Paints
Neutral
1,191
-
114,240
17,603
20,615
18.6
18.6
2,128.9
2,543.3
0.6
0.5
11.8
9.9
28.0
28.9
6.3
5.3
Britannia
Neutral
4,611
-
55,362
9,690
11,278
14.8
15.4
84.0
101.0
54.9
45.7
20.0
15.9
40.6
39.0
5.7
4.9
Colgate
Neutral
1,055
-
28,704
4,420
5,074
24.9
25.3
28.6
32.8
36.9
32.2
14.6
11.8
43.8
40.5
6.2
5.4
Dabur India
Neutral
322
-
56,695
8,346
9,344
19.6
19.9
7.8
9.0
41.3
35.8
8.3
7.5
25.2
24.8
6.4
5.6
GlaxoSmith Con*
Neutral
4,928
-
20,724
5,072
5,760
18.2
18.4
176.3
199.2
28.0
24.7
5.9
5.4
21.2
21.7
3.4
2.9
Godrej Consumer
Neutral
924
-
62,968
10,171
11,682
20.8
21.5
21.7
27.1
42.6
34.1
9.6
8.2
22.3
23.4
6.3
5.4
HUL
Neutral
1,271
-
275,181
37,077
41,508
20.3
21.8
5,189.9
6,318.5
0.2
0.2
38.8
33.1
74.8
82.0
7.3
6.5
ITC
Neutral
269
-
327,041
44,588
49,853
37.0
37.3
9.6
11.0
28.0
24.4
6.9
6.5
25.1
27.3
6.8
6.1
Marico
Neutral
314
-
40,495
6,788
7,766
18.5
19.2
7.1
8.5
44.2
36.9
15.5
13.2
36.9
38.0
5.8
5.1
Nestle*
Neutral
7,137
-
68,808
10,083
11,182
20.0
20.9
119.7
141.3
59.6
50.5
210.1
192.1
36.7
39.8
6.5
5.8
Tata Global
Neutral
210
-
13,241
7,121
7,641
11.9
12.3
6.9
8.0
30.4
26.2
2.0
1.9
6.8
7.2
1.7
1.5
Procter & Gamble
Neutral
8,602
-
27,921
3,034
3,579
27.1
27.7
167.7
198.8
51.3
43.3
13.8
11.9
28.8
29.5
8.6
7.2
Hygiene
IT
HCL Tech^
Buy
871
1,014
124,262
52,342
57,053
20.9
20.9
62.8
67.6
13.9
12.9
3.1
2.7
22.4
20.6
2.0
1.8
Infosys
Buy
948
1,179
217,640
73,963
80,619
26.0
26.0
64.4
69.3
14.7
13.7
2.9
2.7
19.7
19.6
2.4
2.1
TCS
Neutral
2,543
-
501,080
127,403
138,870
27.6
27.6
144.5
156.0
17.6
16.3
5.2
4.9
29.7
29.8
3.6
3.2
Tech Mahindra
Accumulate
477
533
46,570
31,015
33,496
15.0
15.0
35.6
38.1
13.4
12.5
2.3
2.1
17.0
16.3
1.3
1.1
Stock Watch
October 27, 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
302
-
146,901
58,536
61,858
20.3
20.3
18.2
19.1
16.6
15.8
2.6
2.2
14.6
13.4
2.4
2.3
Media
D B Corp
Neutral
360
-
6,626
2,404
2,625
30.5
31.5
23.7
26.9
15.2
13.4
3.6
3.1
23.5
22.8
2.6
2.4
HT Media
Neutral
102
-
2,383
2,589
2,830
15.1
15.4
8.3
10.9
12.3
9.4
1.0
0.9
8.4
10.4
0.5
0.3
Jagran Prakashan
Buy
180
225
5,875
2,541
2,835
28.5
28.7
12.7
14.1
14.2
12.7
2.9
2.5
21.3
21.4
2.2
1.9
Sun TV Network
Neutral
815
-
32,106
3,238
3,789
51.9
55.1
30.9
38.0
26.4
21.4
7.5
6.6
30.0
31.0
9.4
7.9
Hindustan Media
Neutral
240
-
1,761
1,002
1,074
23.3
23.5
29.2
33.8
8.2
7.1
1.3
1.1
15.6
15.4
0.8
0.5
Ventures
TV Today Network
Buy
355
435
2,119
667
727
27.7
27.7
18.6
20.1
19.1
17.7
3.0
3.0
15.6
17.3
2.7
2.5
Music Broadcast Limited Accumulate
380
434
2,166
271
317
91.0
109.0
6.0
10.0
63.3
38.0
4.0
3.6
6.5
9.3
7.6
6.2
Metals & Mining
Coal India
Neutral
292
-
181,536
82,301
91,235
17.0
18.0
17.1
20.5
17.1
14.3
3.2
3.0
45.0
55.0
1.9
1.7
Hind. Zinc
Neutral
318
-
134,196
22,108
24,555
57.0
58.0
22.1
26.3
14.4
12.1
4.7
3.8
32.0
35.0
5.1
4.2
Hindalco
Neutral
272
-
61,094
102,350
105,355
13.5
14.5
21.5
24.5
12.7
11.1
1.8
1.5
15.0
15.2
1.2
1.1
JSW Steel
Neutral
261
-
63,029
64,500
68,245
21.1
21.5
20.1
21.2
13.0
12.3
2.4
2.0
-
-
1.7
1.6
NMDC
Neutral
127
-
40,276
10,209
11,450
47.0
48.0
11.1
12.1
11.5
10.5
1.6
1.5
-
-
3.5
3.1
SAIL
Neutral
77
-
31,637
54,100
63,555
3.0
10.0
(10.0)
1.5
51.1
1.0
1.0
-
-
1.6
1.3
Vedanta
Neutral
343
-
127,444
81,206
87,345
28.0
29.0
26.5
33.5
12.9
10.2
2.9
2.5
-
-
2.3
2.0
Tata Steel
Neutral
729
-
70,845
121,445
126,500
16.2
17.2
65.4
81.3
11.2
9.0
1.8
1.5
-
-
1.1
1.0
Oil & Gas
GAIL
Neutral
461
-
78,003
53,115
52,344
14.2
15.3
30.0
31.1
15.4
14.8
1.9
1.8
-
-
1.2
1.2
ONGC
Neutral
177
-
227,533
83,111
84,934
44.2
44.9
16.4
16.9
10.8
10.5
1.3
1.2
-
-
2.6
2.6
Indian Oil Corp
Neutral
437
-
211,960
396,116
432,560
8.5
8.8
40.1
42.2
10.9
10.3
1.9
1.7
-
-
0.7
0.6
Reliance Industries
Neutral
947
-
616,073
257,711
267,438
17.0
18.2
89.1
89.5
10.6
10.6
1.0
0.9
-
-
2.1
2.0
Pharmaceuticals
Alembic Pharma
Buy
494
600
9,307
3,903
4,584
18.2
19.2
21.8
27.2
22.7
18.2
4.1
3.4
19.8
20.6
2.4
2.1
Alkem Laboratories Ltd
Accumulate
1,867
2,079
22,323
6,320
7,341
17.5
19.8
72.7
96.6
25.7
19.3
4.5
3.8
16.7
18.7
3.5
2.9
Aurobindo Pharma
Accumulate
750
823
43,927
17,086
19,478
22.1
22.0
44.7
51.4
16.8
14.6
3.7
3.0
24.7
22.7
2.7
2.3
Aventis*
Neutral
4,176
-
9,618
2,508
2,862
16.8
16.8
139.9
153.8
29.9
27.2
4.3
3.5
23.5
25.8
3.4
2.8
Cadila Healthcare
Reduce
483
426
49,462
11,584
13,228
20.3
20.4
18.7
21.3
25.8
22.7
5.8
4.7
24.6
22.9
4.1
3.5
Cipla
Sell
612
458
49,279
16,619
19,437
15.4
16.2
19.7
24.3
31.1
25.2
3.5
3.1
12.0
13.2
3.1
2.7
Dr Reddy's
Neutral
2,346
-
38,889
15,844
17,973
17.6
18.2
91.7
111.0
25.6
21.1
2.9
2.6
11.9
13.0
2.7
2.4
GSK Pharma*
Neutral
2,511
-
21,265
3,260
3,651
15.0
18.0
46.1
58.6
54.5
42.8
11.2
11.5
20.0
26.5
6.4
5.8
Indoco Remedies
Sell
264
153
2,433
1,154
1,310
14.9
14.9
11.3
12.7
23.4
20.8
3.3
2.9
15.0
15.0
2.2
1.9
Stock Watch
October 27, 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
Accumulate
504
540
6,355
3,593
4,022
14.5
15.5
19.4
25.2
26.0
20.0
2.4
2.1
9.5
11.2
1.8
1.6
Lupin
Buy
997
1,467
45,049
18,657
21,289
21.3
23.3
52.8
66.7
18.9
15.0
2.9
2.4
16.3
17.5
2.4
2.0
Natco Pharma
Accumulate
979
1,057
17,073
1,886
2,016
32.3
29.5
23.2
22.0
42.3
44.4
8.9
7.8
20.9
17.6
8.9
8.3
Sun Pharma
Accumulate
531
558
127,388
32,899
36,451
26.9
25.4
31.6
32.3
16.8
16.4
3.0
2.6
18.7
18.8
3.5
3.0
Syngene International
Accumulate
510
557
10,209
1,402
1,823
32.8
36.0
15.9
20.7
32.2
24.7
6.0
4.9
18.7
20.0
7.3
5.6
Power
Tata Power
Neutral
82
-
22,220
32,547
33,806
20.5
20.5
4.7
5.4
17.5
15.4
1.7
1.4
10.5
10.5
1.7
1.6
NTPC
Neutral
185
-
152,252
86,070
101,246
28.3
30.7
12.9
16.2
14.3
11.4
1.5
1.4
10.6
12.4
3.1
2.8
Power Grid
Accumulate
212
223
110,910
29,183
32,946
89.7
90.0
18.0
20.8
11.8
10.2
2.0
1.8
17.7
18.2
7.7
7.2
Real Estate
Prestige Estate
Neutral
307
-
11,522
4,607
5,146
21.0
22.2
7.9
9.8
38.9
31.4
2.4
2.2
10.3
12.0
3.7
3.3
MLIFE
Accumulate
462
522
2,370
487
590
12.3
17.8
21.0
31.2
22.0
14.8
1.2
1.1
5.2
7.4
3.6
2.9
Telecom
Bharti Airtel
Neutral
511
-
204,087
97,903
105,233
36.0
36.3
9.3
11.1
54.9
46.2
2.7
2.5
5.0
5.6
3.0
2.8
Idea Cellular
Neutral
97
-
34,914
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
4,307
-
9,152
3,244
3,723
14.9
16.1
167.5
209.4
25.7
20.6
5.7
4.7
23.7
24.8
2.5
2.1
Asian Granito
Buy
484
570
1,457
1,169
1,286
12.5
12.5
16.0
19.7
30.3
24.6
3.2
2.9
10.7
11.6
1.5
1.3
Bajaj Electricals
Neutral
389
-
3,945
4,646
5,301
6.7
7.6
16.1
22.3
24.1
17.4
3.9
3.4
16.4
19.2
0.8
0.7
Banco Products (India)
Neutral
217
-
1,552
1,530
1,695
13.2
12.7
19.0
20.0
11.4
10.9
1.8
1.6
0.2
0.2
0.9
102.7
Coffee Day Enterprises
Neutral
220
-
4,532
3,494
3,913
17.4
18.0
4.8
5.7
-
38.6
2.0
1.9
-
0.1
1.8
1.5
Ltd
Elecon Engineering
Neutral
71
-
791
171
201
15.0
16.2
36.0
43.0
2.0
1.6
0.2
0.2
0.1
0.1
4.0
3.4
Garware Wall Ropes
Neutral
907
-
1,986
928
1,003
15.2
15.2
39.4
43.2
23.0
21.0
3.8
3.2
16.5
15.4
2.0
1.8
Goodyear India*
Neutral
808
-
1,863
1,717
1,866
11.8
12.3
47.9
49.8
16.9
16.2
2.6
2.3
15.6
15.7
0.8
111.7
Hitachi
Neutral
2,448
-
6,655
2,355
2,715
10.3
10.8
49.0
60.9
50.0
40.2
11.7
9.2
0.2
0.2
2.9
2.5
HSIL
Neutral
419
-
3,028
2,240
2,670
14.6
15.0
17.0
22.0
24.6
19.0
2.0
1.9
0.1
0.1
1.6
1.3
Interglobe Aviation
Neutral
1,168
-
42,241
22,570
27,955
14.2
15.0
63.6
81.8
18.4
14.3
9.7
8.2
0.5
0.6
1.6
1.2
Jyothy Laboratories
Neutral
371
-
6,739
1,781
2,044
14.1
15.0
9.4
10.5
39.7
35.3
8.4
7.9
0.2
0.2
4.0
3.4
Linc Pen & Plastics
Neutral
256
-
378
420
462
9.3
9.3
15.3
17.1
16.7
14.9
2.8
2.9
16.9
19.5
1.0
0.9
M M Forgings
Neutral
837
-
1,011
542
642
20.1
21.0
41.6
56.8
20.1
14.7
2.8
2.4
0.1
0.2
2.3
2.0
Mirza International
Neutral
160
-
1,922
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
194
265
2,769
561
617
41.5
41.5
11.5
12.7
16.9
15.3
1.8
1.6
10.5
10.4
5.6
4.9
Nilkamal
Neutral
1,607
-
2,398
2,317
2,525
11.4
11.1
96.0
105.0
16.7
15.3
2.8
2.5
0.2
0.2
1.0
0.9
Stock Watch
October 27, 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
270
-
2,269
1,987
2,379
7.6
9.0
12.4
18.3
21.8
14.7
3.1
2.7
8.2
13.2
1.3
1.1
Radico Khaitan
Neutral
207
-
2,750
1,811
1,992
13.2
13.2
8.1
8.8
25.5
23.5
2.6
2.8
10.1
12.0
1.8
1.7
Relaxo Footwears
Neutral
520
-
6,241
1,981
2,310
13.7
14.5
12.0
15.5
43.3
33.5
8.4
6.8
0.2
0.2
3.2
2.8
Siyaram Silk Mills
Accumulate
580
620
2,720
1,769
1,981
12.7
12.7
113.1
131.1
5.1
4.4
0.8
0.7
15.5
15.5
1.7
1.5
Styrolution ABS India* Neutral
1,002
-
1,762
1,800
1,980
8.0
8.1
42.0
46.2
23.9
21.7
2.7
2.4
0.1
0.1
1.1
1.0
Surya Roshni
Neutral
337
-
1,478
4,870
5,320
7.7
7.8
22.8
28.1
14.8
12.0
2.0
1.7
0.1
0.1
0.5
0.5
TVS Srichakra
Neutral
3,060
-
2,343
2,729
2,893
12.7
12.5
248.5
265.0
12.3
11.6
3.5
2.8
0.3
0.3
0.9
0.8
Visaka Industries
Neutral
672
-
1,067
1,104
1,214
12.1
12.6
31.0
37.9
21.7
17.8
2.6
2.4
0.1
0.1
1.2
1.1
VIP Industries
Accumulate
279
300
3,942
1,450
1,693
10.4
10.5
6.5
7.8
42.6
35.7
9.0
7.9
21.1
22.1
2.7
2.3
Navin Fluorine
Neutral
726
-
3,579
945
1,154
22.4
22.6
28.7
34.8
25.3
20.9
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 October 26, 2017
Market Outlook
October 27, 2017
Research Team Tel: 022 - 39357800
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