Market Outlook

August 28, 2017

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian markets are likely to open flat with a positive bias tracking SGX Nifty and

BSE Sensex

0.1

31,596

global cues.

Nifty

0.0

9,857

U.S. equity markets closed mixed on Friday, supported by hopes of a long-awaited

Mid Cap

0.8

121

15,252

tax reform plan and boosted from speeches by Federal Reserve Chair Janet Yellen

Small Cap

0.5

15,647

and European Central Bank President Mario Draghi. The Dow Jones Industrial

Bankex

(0.0)

(1)

27,454

Average edged higher for its first weekly gain in the last three weeks. The S&P 500

Index posted a modest gain while the NASDAQ Composite finished slightly lower.

Global Indices

Chg (%)

(Pts)

(Close)

The European markets were stuck in a sideways trend throughout Friday's session

and ended the day with small losses. Traders were reluctant to make any major

Dow Jones

0.1

21,814

moves ahead of speeches from the leaders of the major central banks at their

Nasdaq

(0.1)

(6)

6,266

annual meeting.

FTSE

(0.1)

(6)

7,401

Nikkei

(0.1)

(29)

19,424

On domestic front, Indian markets closed marginally higher on Thursday, led by

gains in pharma and IT stocks ahead of a key meeting of central bankers beginning

Hang Seng

0.8

210

28,058

later in the day.

Shanghai Com

1.1

3,367

News Analysis

Advances / Declines

BSE

NSE

 Maruti Suzuki continues to lead PV market; 7 models in top 10 list

Advances

1,461

963

Detailed analysis is on Pg2

Declines

1,125

728

Unchanged

138

Investor’s Ready Reckoner

Key Domestic & Global Indicators

Volumes (` Cr)

Stock Watch: Latest investment recommendations on 150+ stocks

BSE

3,008

Refer Pg7 onwards

NSE

24,543

Top Picks

CMP

Target

Upside

Company

Sector

Rating

(`)

(%)

#Net Inflows (` Cr)

Net

Mtd

Ytd

Blue Star

Capital Goods

Accumulate

745

760

2.1

FII

(728)

(10,49)

47,904

Dewan Housing FinanceFinancials

Accumulate

474

520

9.7

MFs

10,828

61,774

Mahindra Lifespace

Real Estate

Buy

425

522

22.8

Navkar Corporation

Others

Buy

187

265

41.9

Top Gainers

Price (`)

Chg (%)

KEI Industries

Capital Goods

Buy

233

258

10.6

More Top Picks on Pg5

Wockpharma

608

8.9

Jpassociat

8.9

Key Upcoming Events

Consensus

Kajariacer

704

8.2

Date

Region

Event Description

Reading

Expectations

Bomdyeing

7.3

Aug 29, 2017 US

Consumer Confidence

121.10

119.00

Cadilahc

495

7.0

Aug 30, 2017 Germany Unemployment change (000's)

(8.00)

Aug 30, 2017 Euro Zone Euro-Zone Consumer Confidence

(1.50)

Aug 31, 2017 US

GDP Qoq (Annualised)

2.60

2.70

Top Losers

Price (`)

Chg (%)

Aug 31, 2017 China

PMI Manufacturing

51.40

51.20

Sparc

392

(7.4)

More Events on Pg7

Carerating

1,454

(3.2)

Religare

(3.0)

Eidparry

314

(2.8)

Oberoirlty

367

(2.7)

#as on 24^th Aug, 2017

www.angelbroking.com

Market Outlook

August 28, 2017

News Analysis

Maruti Suzuki continues to lead PV market; 7 models in top 10 list

Maruti Suzuki India retained its hold on the domestic passenger vehicle (PV)

market in July as seven of its models featured in the top 10 selling brands.

According to the latest data from Society of Indian Automobile Manufacturers

(SIAM), in the top 10 best selling PVs, Maruti's Alto retained the top position in July

with the sales of 26,009 units as against 19,844 units in the same month last year.

The company's premium hatchback Baleno was the second best selling model with

19,153 units as compared to 9,120 units in July last year. Compact car Wagon R

was third, selling 16,301 units. The vehicle stood at the same position in the year-

ago period as well with 15,207 unit sales. Vitara Brezza stood at fourth position

with 15,243 units in July. It was at sixth position in July last year with sales of

10,232 units. MSI's Swift stood at fifth position with 13,738 units. It was third in the

same month of last with sales 13,934 units.

Rival Hyundai's hatchback Grand i10 stood at sixth position last month with

12,002 units. The company had sold 11,961 units of the vehicle in the same

period last year. Hyundai's premium hatchback Elite i20 stood at seventh position

last month with sale of 11,390 units. MSI's compact sedan Dzire stood at eighth

position with sales of 11,187 units. Its hatchback Celario came ninth with 11,087

unit sales.

Hyundai's SUV Creta with 10,556 units was at tenth position. MSI's Dzire Tour,

Omni and Renault's Kwid failed to make it to the top 10 list. They had featured in

the top 10 passenger vehicle list in the same period last year.

Economic and Political News

 Aadhaar helped disburse `83,000 cr via direct benefit transfer: Assocham



300 million families got Jan Dhan accounts, `65,000cr deposited: PM Modi

 PSU banks take action against 5,954 wilful defaulters to recover `70K cr

Corporate News

 DLF seals JV deal with GIC after `8,900-cr stake sale by promoters

 OIL seeks shareholders' approval to raise `7,000cr through bonds

 Religare Enterprises seeks shareholders' approval to raise `500cr

www.angelbroking.com

Market Outlook

August 28, 2017

Top Picks

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

Strong growth in domestic business due to its leadership

in acute therapeutic segment. Alkem expects to launch

Alkem Laboratories

21,366

1,787

2,161

20.9

more products in USA, which bodes for its international

business.

We expect the company would report strong profitability

Asian Granito

1,308

435

480

10.4

owing to better product mix, higher B2C sales and

amalgamation synergy.

Favorable outlook for the AC industry to augur well for

Cooling products business which is out pacing the

Blue Star

7,131

745

760

2.1

market growth. EMPPAC division's profitability to improve

once operating environment turns around.

With a focus on the low and medium income (LMI)

consumer segment, the company has increased its

Dewan Housing Finance

14,864

474

520

9.7

presence in tier-II & III cities where the growth

opportunity is immense.

Loan growth is likely to pick up after a sluggish FY17.

Karur Vysya Bank

8,454

140

160

14.4

Lower credit cost will help in strong bottom-line growth.

Increasing share of CASA will help in NIM improvement.

High order book execution in EPC segment, rising B2C

KEI Industries

1,814

233

258

10.6

sales and higher exports to boost the revenues and

profitability

Speedier execution and speedier sales, strong revenue

Mahindra Lifespace

2,182

425

522

22.8

visibility in short-to-long run, attractive valuations

Expected to benefit from the lower capex requirement

Music Broadcast

2,132

374

434

16.1

and 15 year long radio broadcast licensing.

Massive capacity expansion along with rail advantage at

Navkar Corporation

2,663

187

265

41.9

ICD as well CFS augurs well for the company

Strong brands and distribution network would boost

Siyaram Silk Mills

1,836

1,958

2,500

27.7

growth going ahead. Stock currently trades at an

inexpensive valuation.

Market leadership in Hindi news genre and no.

viewership ranking in English news genre, exit from the

TV Today Network

1,467

246

344

39.8

radio business, and anticipated growth in ad spends by

corporates to benefit the stock.

After GST, the company is expected to see higher

volumes along with improving product mix. The Gujarat

Maruti Suzuki

2,29,640

7,602

8,544

12.4

plant will also enable higher operating leverage which

will be margin accretive.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

August 28, 2017

Key Upcoming Events

Global economic events release calendar

Bloomberg Data

Date

Time

Country

Event Description

Unit

Period

Last Reported

Estimated

Aug 29, 2017

7:30 PMUS

Consumer Confidence

S.A./ 1985=100

Aug

121.10

119.00

Aug 30, 2017

1:25 PMGermany

Unemployment change (000's)

Thousands

Aug

(8.00)

2:30 PMEuro Zone

Euro-Zone Consumer Confidence

Value

Aug F

(1.50)

Aug 31, 2017

6:00 PMUS

GDP Qoq (Annualised)

% Change

2Q S

2.60

2.70

6:30 AMChina

PMI Manufacturing

Value

Aug

51.40

51.20

Sep 01, 2017

1:25 PMGermany

PMI Manufacturing

Value

Aug F

59.40

6:00 PMUS

Change in Nonfarm payrolls

Thousands

Aug

209.00

180.00

6:00 PMUS

Unnemployment rate

Aug

4.30

2:00 PMUK

PMI Manufacturing

Value

Aug

55.10

Sep 05, 2017

1:25 PMGermany

PMI Services

Value

Aug F

53.40

2:30 PMEuro Zone

Euro-Zone GDP s.a. (QoQ)

% Change

2Q F

0.60

Sep 07, 2017

5:15 PMEuro Zone

ECB announces interest rates

Sep 7

Sep 08, 2017

India

Imports YoY%

% Change

Aug

15.40

2:00 PMUK

Industrial Production (YoY)

% Change

Jul

0.30

India

Exports YoY%

% Change

Aug

3.94

China

Exports YoY%

% Change

Aug

7.20

Sep 09, 2017

7:00 AMChina

Consumer Price Index (YoY)

% Change

Aug

1.40

Sep 12, 2017

2:00 PMUK

CPI (YoY)

% Change

Aug

2.60

5:30 PMIndia

Industrial Production YoY

% Change

Jul

(0.10)

Sep 13, 2017

2:00 PMUK

Jobless claims change

% Change

Aug

(4.20)

Producer Price Index (mom)

% Change

Aug

(0.20)

Sep 14, 2017

7:30 AMChina

Industrial Production (YoY)

% Change

Aug

6.40

12:00 PMIndia

Monthly Wholesale Prices YoY%

% Change

Aug

1.88

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

August 28, 2017

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

5.7

10.0

6.0

9.1

8.8

4.9

9.0

5.0

7.9

8.0

7.9

7.6

7.5

3.8

8.0

7.3

7.2

4.0

7.0

3.0

2.8

7.0

2.6

6.1

3.0

1.9

6.0

2.0

5.0

1.0

4.0

3.0

(0.1)

(1.0)

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

(%)

54.0

6.0

5.1

52.0

5.0

4.3

4.2

3.9

50.0

3.6

3.7

4.0

3.4

3.2

3.0

48.0

3.0

2.4

2.2

46.0

2.0

1.5

44.0

1.0

42.0

40.0

Source: Market, Angel Research; Note: Level above 50 indicates expansion

Source: MOSPI, Angel Research

Exhibit 5: Exports and imports growth trends

Exhibit 6: Key policy rates

(%)

Exports yoy growth

Imports yoy growth

(%)

Repo rate

Reverse Repo rate

CRR

60.0

6.50

50.0

6.00

40.0

5.50

30.0

20.0

5.00

10.0

4.50

0 .0

4.00

(10.0)

3.50

(20.0)

(30.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Market Outlook

August 28, 2017

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

71,074

9.3

10.9

22.5

Russia

Micex

1,979

2.4

2.3

(0.4)

India

Nifty

9,857

(1.1)

5.3

13.7

China

Shanghai Composite

3,332

3.4

8.1

South Africa

Top 40

50,175

4.0

5.5

7.1

Mexico

Mexbol

51,373

(0.4)

3.9

8.5

Indonesia

LQ45

988

1.5

5.5

6.1

Malaysia

KLCI

1,769

0.2

(0.1)

4.4

Thailand

SET 50

1,003

0.2

1.2

2.2

USA

Dow Jones

21,814

0.5

3.5

18.6

FTSE

7,401

(0.7)

(1.9)

8.5

Japan

Nikkei

19,453

(2.5)

(1.8)

18.0

Germany

DAX

12,168

(1.1)

(3.4)

14.9

France

CAC

5,104

(1.7)

(4.3)

12.4

Source: Bloomberg, Angel Research

www.angelbroking.com

Stock Watch

August 28, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Agri / Agri Chemical

Rallis

Reduce

230

209

4,472

1,873

2,099

15.0

9.5

10.5

24.2

21.9

3.7

3.3

15.8

16.0

2.3

2.1

United Phosphorus

Neutral

833

42,327

18,922

21,949

18.0

18.5

36.2

45.6

23.0

18.3

4.8

4.0

22.7

23.8

2.4

2.0

Auto & Auto Ancillary

Ashok Leyland

Buy

103

124

30,114

23,339

27,240

10.1

10.8

4.7

6.2

22.1

16.6

4.4

3.9

20.0

23.6

1.2

1.0

Bajaj Auto

Buy

2,734

3,151

79,126

23,936

27,955

19.5

20.1

142.7

167.3

19.2

16.3

4.2

3.7

21.8

22.8

2.9

2.4

Bharat Forge

Neutral

1,148

26,724

7,637

8,755

21.7

23.2

36.1

47.3

31.8

24.3

5.7

4.9

18.5

20.8

3.4

2.8

Eicher Motors

Neutral

30,751

83,710

19,043

22,837

19.5

19.9

835.4

1,019.0

36.8

30.2

13.8

10.6

40.9

37.8

4.3

3.5

Gabriel India

Neutral

177

2,545

1,782

2,033

9.7

10.2

7.1

8.9

25.0

20.0

5.0

4.3

21.0

22.2

1.4

1.2

Hero Motocorp

Accumulate

3,875

4,129

77,373

32,239

36,878

16.0

15.6

184.4

206.5

21.0

18.8

6.6

5.8

31.3

30.7

2.2

1.9

Jamna Auto Industries Neutral

239

1,904

1,441

1,662

14.4

14.8

13.9

17.6

17.2

13.6

4.7

3.8

30.0

31.0

1.3

1.1

Mahindra and Mahindra Neutral

1,376

85,450

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

7,602

8,544

229,640

81,825

101,245

15.0

283.5

356.0

26.8

21.4

5.9

4.8

21.9

22.4

2.5

1.9

Minda Industries

Neutral

779

6,730

4,328

5,084

11.0

11.9

27.3

36.4

28.6

21.4

6.1

4.7

23.1

25.6

1.6

1.4

Motherson Sumi

Neutral

310

65,302

55,937

64,445

10.8

11.4

16.9

21.1

18.4

14.7

4.1

4.2

25.2

25.4

1.2

1.0

Tata Motors

Neutral

384

110,874

303,167

343,649

11.8

13.8

33.1

54.7

11.6

7.0

1.9

1.5

16.9

23.0

0.4

0.3

TVS Motor

Neutral

593

28,192

13,992

16,216

9.0

9.4

17.1

20.3

34.8

29.2

9.2

7.2

29.7

27.7

2.0

1.6

Amara Raja Batteries

Accumulate

779

858

13,299

6,140

7,122

14.3

15.6

29.3

39.0

26.6

20.0

4.5

3.8

17.1

19.0

2.2

1.9

Exide Industries

Neutral

202

17,196

8,689

9,854

15.1

15.2

9.7

11.0

21.0

18.4

3.7

3.3

15.7

16.1

1.7

1.5

Apollo Tyres

Neutral

257

13,062

15,739

17,326

13.3

14.6

20.4

26.7

12.6

9.6

1.5

1.3

20.4

26.7

1.1

1.0

Ceat

Neutral

1,650

6,675

6,661

7,717

11.1

14.2

116.2

178.2

14.2

9.3

2.5

2.1

15.2

21.3

1.1

1.0

JK Tyres

Neutral

144

3,264

8,318

9,239

16.2

16.4

21.0

27.5

6.9

5.2

1.3

1.1

19.1

20.4

0.8

0.7

Swaraj Engines

Neutral

1,990

2,472

788

889

16.4

16.5

71.6

81.0

27.8

24.6

8.0

7.4

29.6

31.0

2.8

2.4

Subros

Neutral

216

1,297

1,855

2,135

11.6

11.8

10.3

14.7

21.1

14.8

3.2

2.7

15.8

19.1

0.9

0.8

Capital Goods

BEML

Neutral

1,792

7,463

4,286

5,194

7.1

8.2

42.9

58.1

41.8

30.8

3.4

3.1

7.6

8.7

1.8

1.5

Bharat Electronics

Neutral

188

41,948

10,258

12,470

19.6

19.5

7.3

8.6

25.7

21.8

0.5

0.4

20.4

21.9

3.6

2.9

Voltas

Neutral

521

17,232

6,778

8,004

9.6

11.0

17.1

22.4

30.5

23.3

7.3

6.4

17.7

19.8

2.2

1.9

BHEL

Neutral

127

31,146

33,200

39,167

6.8

9.5

6.2

11.2

20.5

11.4

0.9

4.6

8.0

0.5

0.4

Blue Star

Neutral

745

7,131

5,101

5,997

6.0

7.0

17.9

26.6

41.6

28.0

8.9

8.1

21.9

29.0

1.4

1.2

CG Power and Industrial

Neutral

4,995

6,555

7,292

7.5

0.8

7,970.0

99.6

1.2

0.1

1.2

0.9

0.8

Solutions

Greaves Cotton

Neutral

145

3,539

1,778

1,993

14.7

15.1

8.1

9.1

17.9

15.9

4.0

3.8

21.8

23.6

1.8

1.6

www.angelbroking.com

Stock Watch

August 28, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Capital Goods

KEC International

Neutral

297

7,627

9,779

11,113

9.4

9.8

14.2

18.2

20.9

16.3

4.0

3.3

21.1

22.1

1.0

0.9

KEI Industries

Accumulate

233

258

1,814

3,001

3,391

10.0

13.0

16.1

17.9

14.5

3.3

2.7

18.2

18.7

0.8

0.7

Thermax

Neutral

881

10,497

4,125

4,747

10.3

10.8

26.7

31.5

33.0

28.0

3.7

3.4

11.2

12.0

2.3

2.0

VATech Wabag

Accumulate

611

681

3,336

3,867

4,126

9.6

10.0

34.9

39.8

17.5

15.4

2.9

2.5

17.7

17.5

0.9

0.8

Cement

ACC

Neutral

1,780

33,435

12,255

13,350

13.5

14.3

58.0

66.2

30.7

26.9

3.6

3.4

11.5

12.2

2.7

2.5

Ambuja Cements

Neutral

275

54,635

10,250

11,450

17.5

19.0

7.2

8.3

38.2

33.2

2.7

2.6

7.0

7.8

5.1

4.5

India Cements

Neutral

178

5,471

6,135

6,750

14.8

15.2

8.5

11.5

20.9

15.4

1.0

4.8

6.2

1.2

1.1

JK Cement

Neutral

1,019

7,121

4,150

4,775

19.2

20.0

49.0

63.5

20.8

16.0

3.3

2.8

17.0

18.5

2.2

1.8

J K Lakshmi Cement

Neutral

412

4,853

3,422

3,757

15.5

17.0

13.5

23.2

30.6

17.8

3.2

2.7

10.8

15.5

1.8

1.6

Orient Cement

Neutral

150

3,081

2,215

3,233

16.8

17.0

5.9

6.9

25.5

21.8

2.0

1.8

10.8

10.1

2.4

1.6

UltraTech Cement

Neutral

3,938

108,118

28,250

35,150

20.2

23.5

77.5

122.2

50.8

32.2

4.3

3.9

9.6

14.8

4.3

3.4

Construction

KNR Constructions

Neutral

218

3,061

1,846

2,203

14.5

12.1

13.7

18.0

16.0

1.0

0.9

17.5

16.7

1.7

1.4

Larsen & Toubro

Neutral

1,131

158,444

95,787

109,476

10.2

11.6

44.5

50.8

25.5

22.3

3.2

2.9

12.9

13.1

2.2

2.0

Gujarat Pipavav Port

Neutral

130

6,285

739

842

61.6

62.7

5.1

6.2

25.5

21.1

3.2

3.1

12.7

14.9

8.0

6.9

PNC Infratech

Neutral

141

3,629

2,040

2,935

13.0

6.4

9.0

22.1

15.7

0.6

0.5

9.7

12.2

1.8

1.3

Simplex Infra

Neutral

487

2,410

6,012

6,619

11.6

11.7

21.1

31.0

23.1

15.7

1.6

1.5

6.5

8.6

0.9

0.8

Sadbhav Engineering

Accumulate

268

298

4,594

3,823

4,426

10.7

10.8

10.3

11.8

26.0

22.7

3.1

2.7

10.1

10.5

1.5

1.3

NBCC

Neutral

206

18,522

9,099

12,706

6.4

7.3

9.6

28.3

21.5

1.3

1.0

27.5

30.5

1.9

1.4

MEP Infra

Neutral

115

1,871

2,403

2,910

18.3

16.8

2.4

6.1

48.9

18.9

18.6

12.5

35.2

55.8

1.9

1.6

SIPL

Neutral

101

3,561

2,060

2,390

46.8

47.7

(5.8)

(3.1)

3.8

4.3

(14.2)

(2.3)

6.5

6.1

Engineers India

Neutral

152

10,253

1,795

2,611

21.1

22.4

5.9

8.1

25.8

18.8

1.8

12.9

16.1

4.1

2.6

Financials

Axis Bank

Accumulate

506

580

121,211

32,558

35,843

3.5

3.2

27.8

41.0

18.2

12.3

2.0

1.7

11.4

14.9

Bank of Baroda

Neutral

143

32,915

22,533

26,079

2.4

12.0

20.9

11.9

6.8

0.8

0.7

6.6

11.0

Canara Bank

Neutral

341

20,368

17,925

20,235

2.0

2.1

18.5

36.5

18.4

9.3

0.7

3.4

6.2

Can Fin Homes

Neutral

2,778

7,396

586

741

3.5

107.8

141.0

25.8

19.7

5.7

4.6

24.1

25.6

Cholamandalam Inv. &

Accumulate

1,146

1,230

17,910

2,826

3,307

6.3

53.7

64.6

21.4

17.8

3.6

3.1

18.3

18.9

Fin. Co.

Dewan Housing Finance Accumulate

473

520

14,843

2,676

3,383

2.4

2.7

37.4

49.7

12.7

9.5

1.7

1.5

13.8

16.2

Equitas Holdings

Buy

158

235

5,345

1,125

1,380

9.6

9.8

1.5

6.0

105.2

26.3

2.4

2.2

2.4

8.2

Federal Bank

Buy

107

125

20,739

4,896

5,930

2.8

3.1

5.4

7.6

19.9

14.1

1.7

1.6

8.5

11.0

www.angelbroking.com

Stock Watch

August 28, 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

HDFC Bank

Neutral

1,766

454,654

55,236

63,253

4.5

4.4

68.9

82.4

25.6

21.4

4.5

3.7

18.7

18.5

ICICI Bank

Accumulate

298

315

191,090

42,361

51,378

3.6

3.9

18.4

25.7

16.2

11.6

1.8

1.7

11.3

15.0

Karur Vysya Bank

Accumulate

140

160

8,454

3,289

3,630

3.7

3.9

10.8

14.1

12.9

9.9

1.5

1.4

12.5

14.7

LIC Housing Finance

Neutral

658

33,227

4,895

6,332

3.4

3.7

50.7

66.8

13.0

9.9

2.6

2.1

21.7

23.8

Punjab Natl.Bank

Neutral

144

30,643

23,708

25,758

2.1

5.9

16.4

24.5

8.8

0.7

3.0

8.3

RBL Bank

Neutral

510

19,352

2,309

2,888

2.6

2.5

16.4

19.1

31.2

26.8

3.9

3.5

13.3

13.8

Repco Home Finance

Buy

650

825

4,066

496

597

4.4

4.2

38.5

48.7

16.9

13.3

3.0

2.5

19.6

20.6

South Ind.Bank

Neutral

5,016

3,195

3,567

3.0

3.1

3.0

3.8

9.2

7.3

0.9

0.8

10.5

11.9

St Bk of India

Neutral

280

242,086

105,827

121,056

2.4

2.5

16.1

25.6

17.4

11.0

1.4

1.2

6.6

9.9

Union Bank

Neutral

136

9,360

14,650

16,225

2.3

23.1

32.5

5.9

4.2

0.5

0.4

7.1

9.2

Yes Bank

Neutral

1,721

78,747

11,088

13,138

3.0

2.9

84.0

99.3

20.5

17.3

3.1

2.7

16.3

16.8

FMCG

Akzo Nobel India

Neutral

1,763

8,456

3,164

3,607

13.8

13.7

58.6

67.9

30.1

26.0

7.4

6.5

24.5

25.1

2.5

2.2

Asian Paints

Neutral

1,136

108,998

17,603

20,615

18.6

2,128.9

2,543.3

0.5

11.3

9.5

28.0

28.9

6.0

5.0

Britannia

Neutral

4,218

50,636

9,690

11,278

14.8

15.4

84.0

101.0

50.2

41.8

18.3

14.5

40.6

39.0

5.2

4.5

Colgate

Neutral

1,093

29,739

4,420

5,074

24.9

25.3

28.6

32.8

38.2

33.3

15.1

12.2

43.8

40.5

6.5

5.6

Dabur India

Neutral

300

52,819

8,346

9,344

19.6

19.9

7.8

9.0

38.4

33.3

7.8

7.0

25.2

24.8

5.9

5.2

GlaxoSmith Con*

Neutral

5,283

22,218

5,072

5,760

18.2

18.4

176.3

199.2

30.0

26.5

6.4

5.8

21.2

21.7

3.7

3.2

Godrej Consumer

Neutral

915

62,328

10,171

11,682

20.8

21.5

21.7

27.1

42.2

33.8

9.5

8.2

22.3

23.4

6.2

5.4

HUL

Neutral

1,179

255,179

37,077

41,508

20.3

21.8

5,189.9

6,318.5

0.2

35.9

30.7

74.8

82.0

6.7

6.0

ITC

Neutral

282

342,755

44,588

49,853

37.0

37.3

9.6

11.0

29.3

25.6

7.2

6.9

25.1

27.3

7.2

6.4

Marico

Neutral

316

40,721

6,788

7,766

18.5

19.2

7.1

8.5

44.4

37.1

15.5

13.3

36.9

38.0

5.8

5.1

Nestle*

Neutral

6,595

63,583

10,083

11,182

20.0

20.9

119.7

141.3

55.1

46.7

194.2

177.5

36.7

39.8

6.0

5.3

Tata Global

Neutral

194

12,260

7,121

7,641

11.9

12.3

6.9

8.0

28.2

24.3

1.9

1.8

6.8

7.2

1.5

1.4

Procter & Gamble

Neutral

8,068

26,189

3,034

3,579

27.1

27.7

167.7

198.8

48.1

40.6

12.9

11.1

28.8

29.5

8.1

6.7

Hygiene

HCL Tech^

Buy

867

1,014

123,770

52,342

57,053

20.9

62.8

67.6

13.8

12.8

3.1

2.6

22.4

20.6

2.0

1.8

Infosys

Buy

913

1,179

209,598

73,963

80,619

26.0

64.4

69.3

14.2

13.2

2.8

2.6

19.7

19.6

2.3

2.0

TCS

Accumulate

2,495

2,651

491,681

127,403

138,870

27.6

144.5

156.0

17.3

16.0

5.1

4.8

29.7

29.8

3.5

3.2

Tech Mahindra

Buy

428

533

41,756

31,015

33,496

15.0

35.6

38.1

12.0

11.2

2.0

1.9

17.0

16.3

1.1

1.0

Wipro

Neutral

290

140,933

58,536

61,858

20.3

18.2

19.1

15.9

15.2

2.5

2.1

14.6

13.4

2.3

2.2

www.angelbroking.com

Stock Watch

August 28, 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

Media

D B Corp

Neutral

373

6,860

2,404

2,625

30.5

31.5

23.7

26.9

15.7

13.9

3.7

3.2

23.5

22.8

2.7

2.4

HT Media

Neutral

2,133

2,589

2,830

15.1

15.4

8.3

10.9

11.0

8.4

0.9

0.8

8.4

10.4

0.4

0.2

Jagran Prakashan

Buy

174

225

5,701

2,541

2,835

28.5

28.7

12.7

14.1

13.7

12.4

2.9

2.5

21.3

21.4

2.1

1.8

Sun TV Network

Neutral

713

28,090

3,238

3,789

51.9

55.1

30.9

38.0

23.1

18.8

6.6

5.8

30.0

31.0

8.2

6.9

Hindustan Media

Neutral

270

1,983

1,002

1,074

23.3

23.5

29.2

33.8

9.3

8.0

1.4

1.2

15.6

15.4

1.0

0.7

Ventures

TV Today Network

Buy

246

344

1,467

667

727

27.7

18.6

20.1

13.2

12.3

2.1

15.6

17.3

1.7

1.6

Music Broadcast Limited Buy

374

434

2,132

271

317

91.0

109.0

6.0

10.0

62.3

37.4

3.9

3.5

6.5

9.3

7.5

6.1

Metals & Mining

Coal India

Neutral

241

149,723

82,301

91,235

17.0

18.0

17.1

20.5

14.1

11.8

2.7

2.5

45.0

55.0

1.5

1.3

Hind. Zinc

Neutral

284

120,189

22,108

24,555

57.0

58.0

22.1

26.3

12.9

10.8

4.2

3.4

32.0

35.0

4.4

3.7

Hindalco

Neutral

232

52,150

102,350

105,355

13.5

14.5

21.5

24.5

10.8

9.5

1.5

1.3

15.0

15.2

1.1

1.0

JSW Steel

Neutral

246

59,452

64,500

68,245

21.1

21.5

20.1

21.2

12.2

11.6

2.2

1.9

1.6

NMDC

Neutral

122

38,663

10,209

11,450

47.0

48.0

11.1

12.1

11.0

10.1

1.5

1.4

3.3

3.0

SAIL

Neutral

25,132

54,100

63,555

3.0

10.0

(10.0)

1.5

40.6

0.8

1.5

1.2

Vedanta

Neutral

299

110,977

81,206

87,345

28.0

29.0

26.5

33.5

11.3

8.9

2.6

2.2

2.1

1.8

Tata Steel

Neutral

639

62,056

121,445

126,500

16.2

17.2

65.4

81.3

9.8

7.9

1.6

1.3

1.0

0.9

Oil & Gas

GAIL

Neutral

383

64,785

53,115

52,344

14.2

15.3

30.0

31.1

12.8

12.3

1.6

1.5

0.9

ONGC

Neutral

159

204,498

83,111

84,934

44.2

44.9

16.4

16.9

9.7

9.4

1.2

1.1

2.3

Indian Oil Corp

Neutral

428

207,930

396,116

432,560

8.5

8.8

40.1

42.2

10.7

10.2

1.8

1.7

0.7

0.6

Reliance Industries

Neutral

1,567

509,703

257,711

267,438

17.0

18.2

89.1

89.5

17.6

17.5

1.6

1.5

1.6

Pharmaceuticals

Alembic Pharma

Buy

510

600

9,610

3,903

4,584

18.2

19.2

21.8

27.2

23.4

18.7

4.3

3.5

19.8

20.6

2.5

2.1

Alkem Laboratories Ltd

Buy

1,787

2,161

21,366

6,901

7,850

18.4

19.1

85.0

100.5

21.0

17.8

4.3

3.6

20.2

20.1

3.1

2.7

Aurobindo Pharma

Accumulate

733

823

42,916

17,086

19,478

22.1

22.0

44.7

51.4

16.4

14.3

3.6

2.9

24.7

22.7

2.6

2.3

Aventis*

Neutral

4,007

9,229

2,508

2,862

16.8

139.9

153.8

28.6

26.1

4.2

3.4

23.5

25.8

3.3

2.7

Cadila Healthcare

Reduce

495

426

50,670

11,584

13,228

20.3

20.4

18.7

21.3

26.5

23.2

5.9

4.8

24.6

22.9

4.2

3.6

Cipla

Sell

573

461

46,141

16,619

19,437

15.4

16.2

19.7

24.3

29.1

23.6

3.3

2.9

12.0

13.2

2.9

2.5

Dr Reddy's

Buy

2,088

2,419

34,608

15,844

17,973

17.6

18.2

91.7

111.0

22.8

18.8

2.6

2.3

11.9

13.0

2.4

2.1

GSK Pharma*

Neutral

2,385

20,200

3,260

3,651

15.0

18.0

46.1

58.6

51.7

40.7

10.6

11.0

20.0

26.5

6.1

5.6

Indoco Remedies

Sell

190

153

1,749

1,154

1,310

14.9

11.3

12.7

16.8

14.9

2.4

2.1

15.0

1.6

1.4

Ipca labs

Buy

414

620

5,227

3,593

4,022

14.5

15.5

19.4

25.2

21.4

16.4

2.0

1.8

9.5

11.2

1.5

1.4

www.angelbroking.com

Stock Watch

August 28, 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

Lupin

Buy

992

1,467

44,802

18,657

21,289

21.3

23.3

52.8

66.7

18.8

14.9

2.8

2.4

16.3

17.5

2.4

2.0

Natco Pharma

Accumulate

725

796

12,634

1,836

1,946

31.8

28.9

22.1

20.6

32.8

35.2

6.6

5.9

20.1

16.7

6.7

6.3

Sun Pharma

Buy

483

712

115,956

32,899

36,451

26.9

25.4

31.6

32.3

15.3

15.0

2.7

2.3

18.7

18.8

3.2

2.7

Syngene International

Buy

445

557

8,900

1,402

1,823

32.8

36.0

15.9

20.7

28.0

21.5

5.2

4.3

18.7

20.0

6.3

4.9

Power

Tata Power

Neutral

21,435

32,547

33,806

20.5

4.7

5.4

16.9

14.8

1.6

1.4

10.5

1.6

NTPC

Neutral

169

139,472

86,070

101,246

28.3

30.7

12.9

16.2

13.1

10.4

1.4

1.3

10.6

12.4

3.0

2.7

Power Grid

Neutral

220

115,069

29,183

32,946

89.7

90.0

18.0

20.8

12.3

10.6

2.0

1.8

17.7

18.2

7.9

7.3

Real Estate

Prestige Estate

Neutral

258

9,684

4,607

5,146

21.0

22.2

7.9

9.8

32.7

26.4

2.0

1.9

10.3

12.0

3.3

3.0

MLIFE

Buy

425

522

2,182

487

590

12.3

17.8

21.0

31.2

20.3

13.6

1.1

1.0

5.2

7.4

3.2

2.6

Telecom

Bharti Airtel

Neutral

433

173,027

97,903

105,233

36.0

36.3

9.3

11.1

46.5

39.2

2.3

2.1

5.0

5.6

2.7

2.5

Idea Cellular

Neutral

32,478

35,012

37,689

27.1

27.7

(4.4)

(2.7)

1.4

1.5

(6.8)

(4.6)

2.2

2.0

zOthers

Abbott India

Neutral

4,301

9,140

3,244

3,723

14.9

16.1

167.5

209.4

25.7

20.5

5.7

4.7

23.7

24.8

2.5

2.1

Asian Granito

Accumulate

435

480

1,308

1,169

1,286

12.5

16.0

19.7

27.2

22.1

2.9

2.6

10.7

11.6

1.4

1.2

Bajaj Electricals

Buy

340

395

3,447

4,646

5,301

6.7

7.6

16.1

22.3

21.1

15.2

3.5

2.9

16.4

19.2

0.7

Banco Products (India)

Neutral

206

1,477

1,530

1,695

13.2

12.7

19.0

20.0

10.9

10.3

1.7

1.5

0.2

0.9

96.9

Coffee Day Enterprises

Neutral

241

4,955

3,494

3,913

17.4

18.0

4.8

5.7

42.2

2.1

2.0

0.1

1.9

1.7

Ltd

Elecon Engineering

Neutral

537

171

201

15.0

16.2

36.0

43.0

1.3

1.1

0.1

2.5

2.1

Garware Wall Ropes

Neutral

864

1,891

928

1,003

15.2

39.4

43.2

21.9

20.0

3.6

3.1

16.5

15.4

1.9

1.7

Goodyear India*

Neutral

813

1,875

1,717

1,866

11.8

12.3

47.9

49.8

17.0

16.3

2.6

2.3

15.6

15.7

0.8

112.7

Hitachi

Neutral

2,006

5,454

2,355

2,715

10.3

10.8

49.0

60.9

40.9

32.9

9.6

7.6

0.2

2.3

2.0

HSIL

Neutral

378

2,732

2,240

2,670

14.6

15.0

17.0

22.0

22.2

17.2

1.8

1.7

0.1

1.4

1.2

Interglobe Aviation

Neutral

1,187

42,917

22,570

27,955

14.2

15.0

63.6

81.8

18.7

14.5

9.8

8.3

0.5

0.6

1.6

1.2

Jyothy Laboratories

Neutral

376

6,835

1,781

2,044

14.1

15.0

9.4

10.5

40.2

35.8

8.6

8.0

0.2

4.1

3.5

Linc Pen & Plastics

Neutral

236

349

420

462

9.3

15.3

17.1

15.4

13.8

2.6

2.7

16.9

19.5

0.9

0.8

M M Forgings

Neutral

600

724

542

642

20.1

21.0

41.6

56.8

14.4

10.6

2.0

1.7

0.1

0.2

1.8

1.5

Mirza International

Neutral

154

1,853

1,148

1,285

18.0

8.0

9.4

19.2

16.5

3.2

2.7

16.3

16.1

1.8

1.5

Navkar Corporation

Buy

187

265

2,663

561

617

41.5

11.5

12.7

16.2

14.7

1.7

1.5

10.5

10.4

5.4

4.7

Nilkamal

Neutral

1,557

2,323

2,317

2,525

11.4

11.1

96.0

105.0

16.2

14.8

2.8

2.4

0.2

1.0

0.9

Parag Milk Foods

Neutral

241

2,028

1,987

2,379

7.6

9.0

12.4

18.3

19.5

13.2

2.7

2.4

8.2

13.2

1.1

1.0

www.angelbroking.com

Stock Watch

August 28, 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

Radico Khaitan

Neutral

165

2,195

1,811

1,992

13.2

8.1

8.8

20.4

18.7

2.1

2.2

10.1

12.0

1.5

1.4

Relaxo Footwears

Neutral

503

6,041

1,981

2,310

13.7

14.5

12.0

15.5

41.9

32.5

8.2

6.6

0.2

3.1

2.7

Siyaram Silk Mills

Buy

1,958

2,500

1,836

1,769

1,981

12.7

113.1

131.1

17.3

14.9

2.7

2.3

15.5

1.2

1.1

Styrolution ABS India* Neutral

910

1,600

1,800

1,980

8.0

8.1

42.0

46.2

21.7

19.7

2.4

2.2

0.1

1.0

0.9

Surya Roshni

Neutral

274

1,203

4,870

5,320

7.7

7.8

22.8

28.1

12.1

9.8

1.6

1.4

0.1

0.5

0.4

TVS Srichakra

Neutral

3,321

2,543

2,729

2,893

12.7

12.5

248.5

265.0

13.4

12.5

3.8

3.1

0.3

0.9

Visaka Industries

Neutral

542

861

1,104

1,214

12.1

12.6

31.0

37.9

17.5

14.3

2.1

1.9

0.1

1.0

0.9

VIP Industries

Neutral

211

2,983

1,450

1,693

10.4

10.5

6.5

7.8

32.3

27.0

6.8

6.0

21.1

22.1

2.0

1.7

Navin Fluorine

Accumulate

664

730

3,273

945

1,154

22.4

22.6

28.7

34.8

23.2

19.1

3.8

3.3

3.0

2.3

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 24, 2017

www.angelbroking.com

Market Outlook

August 28, 2017

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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