Market Outlook
January 02, 2017
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open flat with a negative bias tracking SGX Nifty and
BSE Sensex
1.0
260
26,626
global cues.
Nifty
1.0
82
8,186
US markets moved modestly lower on the last trading session of the year. While
Mid Cap
1.1
127
12,031
initially the markets saw lows, there was some recovery later, but the overall markets
Small Cap
0.8
92
12,046
closed on a negative territory. Though there was no specific data points, traders
seemed to have taken a pause in taking positions ahead of weekend and hence the
Bankex
0.9
184
20,749
weakness in the markets. Most of the European markets ended on a positive note on
the last trading session of the year.
Global Indices
Chg (%)
(Pts)
(Close)
2016 has been an eventful year for the Indian markets. Series of global events and
Dow Jones
(0.3)
(57)
19,762
domestic factors impacted the markets. While there is has been some slow down in
Nasdaq
(0.9)
(49)
5,383
the economic activity during the current quarter on account of demonetization,
FTSE
0.3
22
7,143
domestics investors have been positive on the Indian markets as it is expected that
Nikkei
(0.2)
(31)
19,114
the pent up demand would come back after few quarters. On the last trading
Hang Seng
1.0
210
22,001
session of the calendar year the Indian markets witnessed strong buying. With
Shanghai Com
0.2
8
3,104
quarterly results around the coroner investors will watch out for the commentary by
corporate as to how 2017 looks forwards to them.
Advances / Declines
BSE
NSE
News Analysis
Advances
1,783
1,146
SBI goes for a sharp cut in lending rates
Declines
860
437
Detailed analysis on Pg2
Unchanged
188
94
Investor’s Ready Reckoner
Key Domestic & Global Indicators
Volumes (` Cr)
Stock Watch: Latest investment recommendations on 150+ stocks
BSE
3,136
Refer Pg5 onwards
NSE
14,902
Top Picks
CMP
Target
Upside
Net Inflows (` Cr)
Net
Mtd
Ytd
Company
Sector
Rating
(`)
(`)
(%)
FII
(586)
(7,155)
19,573
Amara Raja Batteries Auto & Auto Ancillary
Buy
872
1,167
33.9
MFs
725
6,423
44,608
Alkem Laboratories
Pharmaceuticals
Buy
1,619
1,989
22.9
HCL Tech
IT
Buy
827
1,000
20.9
Power Grid Corp.
Power
Buy
183
223
21.6
Top Gainers
Price (`)
Chg (%)
Navkar Corp.
Others
Buy
165
265
60.6
Jpassociat
8
7.7
More Top Picks on Pg4
Hdil
60
7.2
Renuka
14
6.4
Key Upcoming Events
Previous
Consensus
Shreecem
14,630
6.0
Date
Region
Event Description
Reading
Expectations
Kajariacer
465
5.8
Jan 02 Germany
PMI Manufacturing
55.5
55.5
Jan 03 Germany
Unemployment change (000’s)
(5.0)
(5.0)
Jan 03 UK
PMI Manufacturing
53.4
53.3
Top Losers
Price (`)
Chg (%)
Jan 04 Germany
PMI Services
53.8
53.8
Enginersin
151
(9.9)
More Events on Pg4
Cholafin
945
(3.8)
Idfc
54
(2.9)
Ifci
27
(2.9)
Natcopharm
581
(2.7)
As on December 30, 2016
Market Outlook
January 02, 2017
News Analysis
SBI goes for sharp cut in lending rates
There has been a flush of deposits coming in at the end of banks across India in
the last 50 days, after the Govt of India withdrew `500/ `1000 as legal tender.
Huge deposit base has reduced the cost of funds for banks and as per Marginal
Cost of Funds Based Lending (MCLR) banks are supposed to pass on the lower
cost to end borrowers. Accordingly SBI has gone for rate cut as high as 90 bps.
Accordingly a one year loan will not be at 8% vs 8.9% earlier while a three years
loan will now be priced at 8.15% vs 9.05% earlier. This probably is one of the
steepest cut in rates by banks in last 8 years.
The credit growth for the industry has been severely under pressure for the year
and on a year to date basic it has rather declined in absolute terms. While earlier
there had been some reduction in the lending rates it didn’t help in demand
picking up materially. With this move however there should be pickup in demand
in the medium term. In his New Years Eve speech the prime minister also has
announced a series of measures for affordable housing. Accordingly home loans
upto `2 lakhs, `9 lakhs and `12 lakhs will be eligible for interest relief of 3%, 4%
and 3% respectively. We think lower interest rates together with the series of
measures announced by the Govt will help pick up in credit to some extent.
Economic and Political News
Petrol prices hiked by `1.29 per lt, diesel by 97 piase
RBI allows NRIs to exchange old notes till June 30
CBDT extends deadlines for tax settlement scheme till Jan 31st 2017
Corporate News
Maruti Suzuki declared a 1% decline in sales at 1.17lakh units in Dec 2016
Lakshmi Vilas Bank raises `168cr via QIP
IL&FS Engineering bags `243cr Karnataka road contracts
Market Outlook
January 02, 2017
Top Picks ★★★★★
Large Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
To outpace battery industry growth due to better technological
Amara Raja Batteries
14,888
872
1,167
33.9
products leading to market share gains in both the automotive
OEM and replacement segments.
Strong growth in domestic business due to its leadership in
Alkem Laboratories
19,358
1,619
1,989
22.9
acute therapeutic segment. Alkem expects to launch more
products in USA, which bodes for its international business.
The stock is trading at attractive valuations and is factoring all
HCL Tech
1,16,759
827
1,000
20.9
the bad news.
Back on the growth trend, expect a long term growth of 14% to
Infosys
2,32,152
1,011
1,249
23.5
be a US$20bn in FY2020.
Strong order backlog and improvement in execution would
Larsen & Tourbo
1,25,855
1,349
1,634
21.1
trigger the growth for the L&T
One of the largest pharma companies with strong international
Lupin
66,976
1,484
1,809
21.9
presence. It has a rich pipeline of ANDAs which is also one of
the largest among the generic companies.
Going forward, we expect the company to report strong top-
Power Grid Corporation
95,974
183
223
21.6
line CAGR of ~16% and bottom-line CAGR of ~19% over
FY16-18 on back of strong capitalization guidance
Source: Company, Angel Research
Mid Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
We expect the company would report strong profitability owing
Asian Granito
650
216
351
62.4
to better product mix, higher B2C sales and amalgamation
synergy.
Among the top 4 players in the consumer durables segment.
Bajaj Electricals
2,199
217
274
26.0
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
4,549
476
634
33.1
growth. EMPPAC division's profitability to improve once
operating environment turns around.
With a focus on the low and medium income (LMI) consumer
Dewan Housing Finance
7,629
244
350
43.6
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
4,878
145
235
61.6
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 radio
Jagran Prakashan
5,873
180
225
25.2
business (Radio City) would also boost the company's revenue
growth.
Speedier execution and speedier sales, strong revenue visibilty
Mahindra Lifespace
1,457
355
522
47.1
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 aggressive
Mirza International
1,025
85
107
25.6
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
2,354
165
265
60.6
as well CFS augurs well for the company
Strong brands and distribution network would boost growth
Siyaram Silk Mills
1,205
1,285
1,605
24.9
going ahead. Stock currently trades at an inexpensive
valuation.
Market leadership in Hindi news genre and no. 2 viewership
ranking in English news genre, exit from the radio business,
TV Today Network
1,557
261
385
47.5
and anticipated growth in ad spends by corporates to benefit
the stock.
Source: Company, Angel Research
Market Outlook
January 02, 2017
Key Upcoming Events
Global economic events release calendar
Date
Time
Country
Event Description
Unit
Period
Bloomberg Data
Last Reported Estimated
Jan 2, 2017
2:25PM
Germany
PMI Manufacturing
Value
Dec F
55.50
55.50
Jan 3, 2017
2:25PM
Germany
Unemployment change (000's)
Thousands
Dec
(5.00)
(5.00)
3:00PM
UK
PMI Manufacturing
Value
Dec
53.40
53.30
Jan 4, 2017
2:25PM
Germany
PMI Services
Value
Dec F
53.80
53.80
Jan 5, 2017
7:00PM
US
Change in Nonfarm payrolls
Thousands
Dec
178.00
175.00
Jan 6, 2017
7:00PM
US
Initial Jobless claims
Thousands
Dec 31
265.00
--
3:30PM
Euro Zone
Euro-Zone Consumer Confidence
Value
Dec F
(5.10)
(5.80)
7:00PM
US
Unnemployment rate
%
Dec
4.60
4.70
Jan 10, 2017
7:00AM
China
Consumer Price Index (YoY)
% Change
Dec
2.30
2.20
India
Imports YoY%
% Change
Dec
10.40
--
India
Exports YoY%
% Change
Dec
2.30
--
Jan 11, 2017
3:00PM
UK
Industrial Production (YoY)
% Change
Nov
(1.10)
--
Jan 12, 2017
5:30PM
India
Industrial Production YoY
% Change
Nov
(1.90)
--
Jan 13, 2017
China
Exports YoY%
% Change
Dec
(1.60)
(3.00)
US
Producer Price Index (mom)
% Change
Dec
--
--
Jan 16, 2017
12:00PM
India
Monthly Wholesale Prices YoY%
% Change
Dec
3.15
--
Jan 17, 2017
7:00PM
US
Consumer price index (mom)
% Change
Dec
0.20
--
Jan 18, 2017
3:00PM
UK
CPI (YoY)
% Change
Dec
1.20
--
3:30PM
Euro Zone
Euro-Zone CPI (YoY)
%
Dec F
0.60
--
3:00PM
UK
Jobless claims change
% Change
Dec
2.40
--
7:45PM
US
Industrial Production
%
Dec
(0.44)
--
Jan 19, 2017
7:00PM
US
Housing Starts
Thousands
Dec
1,090.00
--
7:00PM
US
Building permits
Thousands
Dec
1,212.00
--
6:15PM
Euro Zone
ECB announces interest rates
%
Jan 19
--
--
Jan 20, 2017
7:30AM
China
Industrial Production (YoY)
% Change
Dec
6.20
--
7:30AM
China
Real GDP (YoY)
% Change
4Q
6.70
--
Jan 24, 2017
3:00PM
UK
GDP (YoY)
% Change
4Q A
2.20
--
Jan 26, 2017
8:30PM
US
New home sales
Thousands
Dec
592.00
--
7:00PM
US
GDP Qoq (Annualised)
% Change
4Q A
3.50
--
Jan 27, 2017
8:30PM
US
Existing home sales
Million
Dec
5.61
--
Jan 31, 2017
8:30PM
US
Consumer Confidence
S.A./ 1985=100
Jan
113.70
--
3:30PM
Euro Zone
Euro-Zone GDP s.a. (QoQ)
% Change
4Q A
0.30
--
Source: Bloomberg, Angel Research
Stock Watch
January 02, 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 )
FY17E FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
Agri / Agri Chemical
Rallis
Accumulate
192
209
3,732
1,937
2,164
13.3
14.3
9.0
11.0
21.3
17.5
3.7
3.2
18.4
19.8
2.0
1.7
United Phosphorus
Accumulate
647
684
32,782
15,176
17,604
18.5
18.5
37.4
44.6
17.3
14.5
3.4
2.8
21.4
21.2
2.3
1.9
Auto & Auto Ancillary
Ashok Leyland
Buy
80
111
22,795
22,407
26,022
10.6
10.6
5.2
6.4
15.4
12.5
3.5
2.9
23.6
24.7
1.1
0.9
Bajaj Auto
Neutral
2,634
-
76,215
25,093
27,891
19.5
19.2
143.9
162.5
18.3
16.2
5.1
4.4
30.3
29.4
2.8
2.4
Bharat Forge
Neutral
906
-
21,096
7,726
8,713
20.5
21.2
35.3
42.7
25.7
21.2
4.7
4.3
18.9
20.1
2.8
2.4
Eicher Motors
Neutral
21,803
-
59,312
16,583
20,447
17.5
18.0
598.0
745.2
36.5
29.3
12.5
9.5
41.2
38.3
3.4
2.7
Gabriel India
Buy
108
130
1,545
1,544
1,715
9.0
9.3
5.4
6.3
19.9
17.1
3.8
3.3
18.9
19.5
1.0
0.8
Hero Motocorp
Buy
3,045
3,541
60,801
30,958
34,139
15.7
15.7
193.6
208.3
15.7
14.6
6.2
5.1
34.2
30.5
1.8
1.6
Jamna Auto Industries Neutral
170
-
1,353
1,486
1,620
9.8
9.9
15.0
17.2
11.3
9.9
2.5
2.1
21.8
21.3
1.0
0.9
L G Balakrishnan & Bros Neutral
540
-
848
1,302
1,432
11.6
11.9
43.7
53.0
12.4
10.2
1.7
1.6
13.8
14.2
0.7
0.7
Mahindra and Mahindra Neutral
1,184
-
73,565
46,534
53,077
11.6
11.7
67.3
78.1
17.6
15.2
2.9
2.5
15.4
15.8
1.6
1.3
Maruti
Accumulate
5,323
6,006
160,797
68,057
82,958
15.8
15.5
212.1
261.2
25.1
20.4
5.0
4.1
19.8
20.3
2.0
1.6
Minda Industries
Neutral
302
-
2,393
2,728
3,042
9.0
9.1
68.2
86.2
4.4
3.5
1.0
0.8
23.8
24.3
0.9
0.8
Motherson Sumi
Neutral
326
-
45,716
45,896
53,687
7.8
8.3
13.0
16.1
25.0
20.2
8.1
6.4
34.7
35.4
1.1
0.9
Rane Brake Lining
Neutral
989
-
783
511
562
11.3
11.5
28.1
30.9
35.2
32.0
5.4
4.9
15.3
15.0
1.7
1.5
Setco Automotive
Neutral
39
-
524
741
837
13.0
13.0
15.2
17.0
2.6
2.3
0.4
0.4
15.8
16.3
1.1
1.0
Tata Motors
Neutral
471
-
136,088
300,209
338,549
8.9
8.4
42.7
54.3
11.1
8.7
1.8
1.5
15.6
17.2
0.6
0.5
TVS Motor
Neutral
361
-
17,134
13,390
15,948
6.9
7.1
12.8
16.5
28.3
21.8
7.0
5.6
26.3
27.2
1.3
1.1
Amara Raja Batteries
Buy
872
1,167
14,888
5,504
6,605
17.6
17.5
33.4
40.9
26.1
21.3
5.8
4.7
22.1
22.0
2.7
2.2
Exide Industries
Neutral
180
-
15,300
7,439
8,307
15.0
15.0
8.1
9.3
22.2
19.4
3.1
2.8
14.3
16.7
1.7
1.5
Apollo Tyres
Buy
185
235
9,414
12,877
14,504
14.3
13.9
21.4
23.0
8.6
8.0
1.3
1.2
16.4
15.2
0.9
0.8
Ceat
Buy
1,163
1,450
4,704
7,524
8,624
13.0
12.7
131.1
144.3
8.9
8.1
1.6
1.4
19.8
18.6
0.7
0.6
JK Tyres
Neutral
113
-
2,565
7,455
8,056
15.0
15.0
21.8
24.5
5.2
4.6
1.1
0.9
22.8
21.3
0.5
0.4
Swaraj Engines
Neutral
1,295
-
1,608
660
810
15.2
16.4
54.5
72.8
23.8
17.8
7.4
6.7
31.5
39.2
2.3
1.8
Subros
Neutral
163
-
976
1,488
1,681
11.7
11.9
6.4
7.2
25.4
22.7
2.7
2.4
10.8
11.4
0.9
0.8
Indag Rubber
Neutral
180
-
473
286
326
19.8
16.8
11.7
13.3
15.4
13.5
2.6
2.4
17.8
17.1
1.3
1.2
Capital Goods
ACE
Neutral
45
-
446
709
814
4.1
4.6
1.4
2.1
32.2
21.5
1.3
1.3
4.4
6.0
0.8
0.7
BEML
Neutral
1,001
-
4,167
3,451
4,055
6.3
9.2
31.4
57.9
31.9
17.3
1.9
1.7
6.3
10.9
1.3
1.1
Bharat Electronics
Neutral
1,375
-
30,714
8,137
9,169
16.8
17.2
58.7
62.5
23.4
22.0
3.6
3.2
44.6
46.3
2.8
2.5
Stock Watch
January 02, 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 )
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
Capital Goods
Voltas
Buy
328
407
10,861
6,511
7,514
7.9
8.7
12.9
16.3
25.5
20.1
4.6
4.0
16.7
18.5
1.4
1.2
BGR Energy
Neutral
113
-
814
16,567
33,848
6.0
5.6
7.8
5.9
14.5
19.1
0.8
0.8
4.7
4.2
0.2
0.1
BHEL
Neutral
121
-
29,628
28,797
34,742
-
2.8
2.3
6.9
52.6
17.5
0.9
0.9
1.3
4.8
0.7
0.5
Blue Star
Buy
476
634
4,549
4,283
5,077
5.9
7.3
14.9
22.1
32.0
21.5
6.2
5.2
20.4
26.4
1.1
0.9
Crompton Greaves
Neutral
59
-
3,717
5,777
6,120
5.9
7.0
3.3
4.5
18.0
13.2
0.8
0.8
4.4
5.9
0.6
0.5
Greaves Cotton
Neutral
122
-
2,982
1,755
1,881
16.8
16.9
7.8
8.5
15.7
14.4
3.1
2.9
20.6
20.9
1.4
1.3
Inox Wind
Neutral
182
-
4,037
5,605
6,267
15.7
16.4
24.8
30.0
7.3
6.1
2.0
1.5
25.9
24.4
0.8
0.6
KEC International
Neutral
140
-
3,603
9,294
10,186
7.9
8.1
9.9
11.9
14.2
11.8
2.1
1.8
15.6
16.3
0.6
0.6
Thermax
Neutral
746
-
8,885
5,421
5,940
7.3
7.3
25.7
30.2
29.0
24.7
3.5
3.2
12.2
13.1
1.5
1.4
VATech Wabag
Buy
469
681
2,558
3,136
3,845
8.9
9.1
26.0
35.9
18.0
13.1
2.3
1.9
13.4
15.9
0.7
0.6
Cement
ACC
Neutral
1,328
-
24,946
11,225
13,172
13.2
16.9
44.5
75.5
29.9
17.6
2.8
2.6
11.2
14.2
2.2
1.9
Ambuja Cements
Neutral
206
-
40,944
9,350
10,979
18.2
22.5
5.8
9.5
35.6
21.7
3.0
2.7
10.2
12.5
4.4
3.7
India Cements
Neutral
117
-
3,583
4,364
4,997
18.5
19.2
7.9
11.3
14.8
10.3
1.1
1.0
8.0
8.5
1.6
1.4
JK Cement
Neutral
718
-
5,022
4,398
5,173
15.5
17.5
31.2
55.5
23.0
12.9
2.8
2.4
12.0
15.5
1.7
1.4
J K Lakshmi Cement
Buy
349
565
4,104
2,913
3,412
14.5
19.5
7.5
22.5
46.5
15.5
2.9
2.4
12.5
18.0
2.0
1.7
Orient Cement
Buy
123
215
2,516
2,114
2,558
18.5
20.5
8.1
11.3
15.2
10.9
2.2
1.9
9.0
14.0
1.8
1.4
UltraTech Cement
Neutral
3,246
-
89,086
25,768
30,385
21.0
23.5
111.0
160.0
29.2
20.3
3.7
3.3
13.5
15.8
3.6
2.9
Construction
ITNL
Neutral
102
-
3,349
8,946
10,017
31.0
31.6
8.1
9.1
12.6
11.2
0.5
0.5
4.2
5.0
3.7
3.4
KNR Constructions
Neutral
171
-
2,403
1,385
1,673
14.7
14.0
41.2
48.5
4.2
3.5
0.8
0.7
14.9
15.2
1.8
1.5
Larsen & Toubro
Buy
1,349
1,634
125,855
111,017
124,908
11.0
11.0
61.1
66.7
22.1
20.2
2.7
2.5
13.1
12.9
2.2
2.0
Gujarat Pipavav Port
Neutral
131
-
6,323
705
788
52.2
51.7
5.0
5.6
26.2
23.4
2.6
2.3
11.2
11.2
8.6
7.2
Nagarjuna Const.
Neutral
80
-
4,472
8,842
9,775
9.1
8.8
5.3
6.4
15.2
12.6
1.2
1.1
8.2
9.1
0.7
0.6
PNC Infratech
Buy
103
143
2,631
2,350
2,904
13.1
13.2
9.0
8.8
11.4
11.7
0.4
0.4
15.9
13.9
1.2
1.0
Simplex Infra
Neutral
297
-
1,472
6,829
7,954
10.5
10.5
31.4
37.4
9.5
8.0
1.0
0.9
9.9
13.4
0.6
0.5
Power Mech Projects
Neutral
452
-
664
1,801
2,219
12.7
14.6
72.1
113.9
6.3
4.0
1.2
1.0
16.8
11.9
0.4
0.3
Sadbhav Engineering
Accumulate
275
298
4,716
3,598
4,140
10.3
10.6
9.0
11.9
30.5
23.1
3.2
2.8
9.9
11.9
1.6
1.4
NBCC
Neutral
239
-
14,337
7,428
9,549
7.9
8.6
8.2
11.0
29.1
21.7
1.5
1.1
28.2
28.7
1.6
1.2
MEP Infra
Neutral
36
-
586
1,877
1,943
30.6
29.8
3.0
4.2
12.0
8.6
5.8
3.9
0.6
0.6
1.7
1.5
SIPL
Neutral
94
-
3,320
1,036
1,252
65.5
66.2
(8.4)
(5.6)
3.5
4.0
(22.8)
(15.9)
11.4
9.5
Stock Watch
January 02, 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 )
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
Construction
Engineers India
Neutral
151
-
10,175
1,725
1,935
16.0
19.1
11.4
13.9
13.3
10.9
1.8
1.8
13.4
15.3
4.8
4.3
Financials
Axis Bank
Buy
450
630
107,608
46,932
53,575
3.5
3.4
32.4
44.6
13.9
10.1
1.8
1.6
13.6
16.5
-
-
Bank of Baroda
Neutral
153
-
35,219
19,980
23,178
1.8
1.8
11.5
17.3
13.3
8.8
1.5
1.3
8.3
10.1
-
-
Canara Bank
Neutral
263
-
14,273
15,225
16,836
1.8
1.8
14.5
28.0
18.1
9.4
1.3
1.0
5.8
8.5
-
-
Dewan Housing Finance Buy
244
350
7,629
2,225
2,688
2.9
2.9
29.7
34.6
8.2
7.0
1.3
1.1
16.1
16.8
-
-
Equitas Holdings
Buy
145
235
4,878
939
1,281
11.7
11.5
5.8
8.2
25.1
17.7
2.2
1.9
10.9
11.5
-
-
Federal Bank
Neutral
67
-
11,511
9,353
10,623
2.9
2.9
4.4
5.8
15.2
11.5
1.5
1.3
9.5
11.0
-
-
HDFC
Neutral
1,262
-
200,086
11,475
13,450
3.4
3.4
45.3
52.5
27.9
24.1
5.4
4.8
20.2
20.5
-
-
HDFC Bank
Accumulate
1,204
1,350
307,432
46,097
55,433
4.5
4.5
58.4
68.0
20.6
17.7
3.6
3.0
18.8
18.6
-
-
ICICI Bank
Buy
255
315
148,597
42,800
44,686
3.1
3.3
18.0
21.9
14.2
11.7
1.9
1.8
11.1
12.3
-
-
Lakshmi Vilas Bank
Buy
141
174
2,538
3,339
3,799
2.7
2.8
11.0
14.0
12.9
10.1
1.3
1.2
11.2
12.7
-
-
LIC Housing Finance
Accumulate
559
630
28,233
3,712
4,293
2.6
2.5
39.0
46.0
14.3
12.2
2.7
2.3
19.9
20.1
-
-
Punjab Natl.Bank
Neutral
116
-
24,599
23,532
23,595
2.3
2.4
6.8
12.6
17.0
9.2
2.6
1.9
3.3
6.5
-
-
RBL Bank
Neutral
335
-
12,392
1,783
2,309
2.6
2.6
12.7
16.4
26.4
20.4
2.9
2.6
12.8
13.3
-
-
South Ind.Bank
Neutral
20
-
2,643
6,435
7,578
2.5
2.5
2.7
3.1
7.2
6.3
0.9
0.8
10.1
11.2
-
-
St Bk of India
Neutral
250
-
193,875
88,650
98,335
2.6
2.6
13.5
18.8
18.5
13.3
1.8
1.5
7.0
8.5
-
-
Union Bank
Neutral
123
-
8,462
13,450
14,925
2.3
2.3
25.5
34.5
4.8
3.6
0.7
0.6
7.5
10.2
-
-
Yes Bank
Neutral
1,156
-
48,904
8,978
11,281
3.3
3.4
74.0
90.0
15.6
12.9
3.0
2.5
17.0
17.2
-
-
FMCG
Asian Paints
Neutral
891
-
85,498
17,128
18,978
16.8
16.4
19.1
20.7
46.7
43.1
16.2
15.3
34.8
35.5
4.9
4.4
Britannia
Buy
2,882
3,626
34,587
9,594
11,011
14.6
14.9
80.3
94.0
35.9
30.7
14.8
11.4
41.2
-
3.5
3.0
Colgate
Accumulate
906
995
24,631
4,605
5,149
23.4
23.4
23.8
26.9
38.1
33.7
21.1
16.5
64.8
66.8
5.3
4.7
Dabur India
Accumulate
277
304
48,803
8,315
9,405
19.8
20.7
8.1
9.2
34.2
30.1
9.5
7.9
31.6
31.0
5.5
4.9
GlaxoSmith Con*
Neutral
4,997
-
21,015
4,350
4,823
21.2
21.4
179.2
196.5
27.9
25.4
7.4
6.3
27.1
26.8
4.2
3.7
Godrej Consumer
Neutral
1,512
-
51,492
10,235
11,428
18.4
18.6
41.1
44.2
36.8
34.2
8.2
6.9
24.9
24.8
5.1
4.5
HUL
Neutral
826
-
178,834
35,252
38,495
17.8
17.8
20.7
22.4
40.0
36.9
38.2
32.8
95.6
88.9
4.9
4.5
ITC
Buy
241
284
292,064
40,059
44,439
38.3
39.2
9.0
10.1
26.8
23.8
7.5
6.5
27.8
27.5
6.8
6.1
Marico
Buy
260
300
33,579
6,430
7,349
18.8
19.5
6.4
7.7
40.7
33.8
12.3
10.3
33.2
32.5
5.0
4.4
Nestle*
Neutral
6,030
-
58,137
10,073
11,807
20.7
21.5
124.8
154.2
48.3
39.1
19.8
17.8
34.8
36.7
5.6
4.7
Tata Global
Neutral
122
-
7,700
8,675
9,088
9.8
9.8
7.4
8.2
16.5
14.9
1.9
1.8
7.9
8.1
0.8
0.8
Stock Watch
January 02, 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 )
FY17E FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FMCG
Procter & Gamble
Neutral
7,060
-
22,917
2,939
3,342
23.2
23.0
146.2
163.7
48.3
43.1
108.1
103.7
25.3
23.5
7.3
6.4
Hygiene
IT
HCL Tech^
Buy
827
1,000
116,759
49,242
57,168
20.5
20.5
55.7
64.1
14.9
12.9
3.0
2.3
20.3
17.9
2.2
1.8
Infosys
Buy
1,011
1,249
232,152
68,350
77,326
27.0
27.0
62.5
69.4
16.2
14.6
3.5
3.2
21.3
21.6
2.8
2.5
TCS
Accumulate
2,362
2,620
465,405
119,025
133,308
27.6
27.6
131.2
145.5
18.0
16.2
5.8
5.4
32.4
33.1
3.7
3.3
Tech Mahindra
Buy
489
600
47,557
29,673
32,937
15.5
17.0
32.8
39.9
14.9
12.3
2.9
2.5
19.6
20.7
1.3
1.1
Wipro
Buy
474
590
115,223
55,440
60,430
18.1
18.1
35.9
39.9
13.2
11.9
2.4
2.2
19.0
19.3
1.8
1.6
Media
D B Corp
Neutral
358
-
6,584
2,297
2,590
27.4
28.2
21.0
23.4
17.1
15.3
4.0
3.4
23.7
23.1
2.7
2.3
HT Media
Neutral
72
-
1,685
2,693
2,991
12.6
12.9
7.9
9.0
9.2
8.0
0.8
0.7
7.8
8.3
0.2
0.1
Jagran Prakashan
Buy
180
225
5,873
2,355
2,635
28.0
28.0
10.8
12.5
16.6
14.4
3.6
3.1
21.7
21.7
2.5
2.2
Sun TV Network
Neutral
493
-
19,413
2,850
3,265
70.1
71.0
26.2
30.4
18.8
16.2
4.8
4.3
24.3
25.6
6.4
5.5
Hindustan Media
Neutral
266
-
1,949
1,016
1,138
24.3
25.2
27.3
30.1
9.7
8.8
1.9
1.7
16.2
15.8
1.2
1.1
Ventures
TV Today Network
Buy
261
385
1,557
637
743
27.5
27.5
18.4
21.4
14.2
12.2
2.5
2.1
17.4
17.2
2.1
1.7
Metals & Mining
Coal India
Neutral
300
-
186,222
84,638
94,297
21.4
22.3
24.5
27.1
12.2
11.1
5.1
4.9
42.6
46.0
1.7
1.5
Hind. Zinc
Neutral
255
-
107,936
14,252
18,465
55.9
48.3
15.8
21.5
16.2
11.9
2.6
2.3
17.0
20.7
7.6
5.9
Hindalco
Neutral
155
-
32,036
107,899
112,095
7.4
8.2
9.2
13.0
16.9
11.9
0.8
0.8
4.8
6.6
0.8
0.8
JSW Steel
Neutral
1,625
-
39,270
53,201
58,779
16.1
16.2
130.6
153.7
12.4
10.6
1.7
1.5
14.0
14.4
1.5
1.3
NMDC
Neutral
123
-
39,058
6,643
7,284
44.4
47.7
7.1
7.7
17.4
16.0
1.5
1.5
8.8
9.2
3.6
3.3
SAIL
Neutral
49
-
20,320
47,528
53,738
(0.7)
2.1
(1.9)
2.6
18.9
0.5
0.5
(1.6)
3.9
1.3
1.2
Vedanta
Neutral
216
-
64,082
71,744
81,944
19.2
21.7
13.4
20.1
16.1
10.8
1.4
1.2
8.4
11.3
1.3
1.0
Tata Steel
Neutral
391
-
37,984
121,374
121,856
7.2
8.4
18.6
34.3
21.0
11.4
1.3
1.2
6.1
10.1
1.0
0.9
Oil & Gas
Cairn India
Neutral
242
-
45,424
9,127
10,632
4.3
20.6
8.8
11.7
27.5
20.7
0.9
0.9
3.3
4.2
6.4
5.4
GAIL
Neutral
438
-
55,553
56,220
65,198
9.3
10.1
27.1
33.3
16.2
13.2
1.5
1.4
9.3
10.7
1.2
1.0
ONGC
Neutral
191
-
245,692
137,222
152,563
15.0
21.8
19.5
24.1
9.8
7.9
0.8
0.8
8.5
10.1
2.1
1.9
Indian Oil Corp
Neutral
325
-
157,841
373,359
428,656
5.9
5.5
54.0
59.3
6.0
5.5
0.9
0.8
16.0
15.6
0.6
0.5
Reliance Industries
Neutral
1,080
-
350,340
301,963
358,039
12.1
12.6
87.7
101.7
12.3
10.6
1.3
1.2
10.7
11.3
1.6
1.4
Pharmaceuticals
Alembic Pharma
Neutral
596
-
11,226
3,483
4,083
20.2
21.4
24.3
30.4
24.5
19.6
5.6
4.5
25.5
25.3
3.2
2.6
Alkem Laboratories Ltd
Buy
1,619
1,989
19,358
6,043
6,893
18.7
19.3
80.5
88.8
20.1
18.2
4.5
3.7
22.3
20.3
3.1
2.7
Aurobindo Pharma
Buy
669
877
39,151
15,720
18,078
23.7
23.7
41.4
47.3
16.2
14.1
4.2
3.3
29.6
26.1
2.7
2.4
Sanofi India*
Neutral
4,297
-
9,896
2,277
2,597
17.3
18.3
149.4
172.0
28.8
25.0
4.8
3.8
25.1
28.8
4.0
3.3
Stock Watch
January 02, 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 )
FY17E FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
Pharmaceuticals
Cadila Healthcare
Accumulate
356
400
36,471
10,429
12,318
22.6
22.0
16.9
19.2
21.1
18.6
5.4
4.3
28.5
25.7
3.5
2.9
Cipla
Reduce
568
490
45,706
15,378
18,089
17.4
18.4
21.6
27.2
26.3
20.9
3.4
3.0
13.7
15.2
3.2
2.6
Dr Reddy's
Neutral
3,059
-
50,667
16,043
18,119
20.8
22.4
112.4
142.9
27.2
21.4
3.6
3.2
14.1
15.9
3.1
2.8
Dishman Pharma
Neutral
216
-
3,484
1,718
1,890
22.7
22.8
9.5
11.3
22.7
19.1
2.2
2.0
10.1
10.9
2.5
2.2
GSK Pharma*
Neutral
2,730
-
23,127
3,000
3,312
15.4
20.6
46.5
60.8
58.7
44.9
14.1
14.1
26.3
30.6
7.4
6.8
Indoco Remedies
Reduce
260
240
2,392
1,112
1,289
16.2
18.2
11.6
16.0
22.4
16.2
3.6
3.0
17.0
20.1
2.3
1.9
Ipca labs
Buy
532
613
6,712
3,303
3,799
15.3
15.3
17.3
19.7
30.8
27.0
2.7
2.5
9.1
9.4
2.2
1.9
Lupin
Buy
1,484
1,809
66,976
15,912
18,644
26.4
26.7
58.1
69.3
25.5
21.4
5.0
4.1
21.4
20.9
4.3
3.5
Sun Pharma
Buy
630
847
151,090
31,129
35,258
32.0
32.9
30.2
35.3
20.9
17.8
3.4
2.8
20.0
20.1
4.4
3.7
Power
Tata Power
Neutral
76
-
20,528
36,916
39,557
17.4
27.1
5.1
6.3
14.9
12.1
1.3
1.2
9.0
10.3
1.6
1.4
NTPC
Neutral
165
-
135,803
86,605
95,545
17.5
20.8
11.8
13.4
14.0
12.3
1.4
1.3
10.5
11.1
2.9
2.9
Power Grid
Buy
183
223
95,974
25,315
29,193
88.2
88.7
14.2
17.2
13.0
10.7
2.0
1.7
15.2
16.1
8.4
7.6
Real Estate
MLIFE
Buy
355
522
1,457
1,152
1,300
22.7
24.6
29.9
35.8
11.9
9.9
0.9
0.8
7.6
8.6
2.0
1.6
Telecom
Bharti Airtel
Neutral
305
-
122,061
105,086
114,808
34.5
34.7
12.2
16.4
25.0
18.6
1.7
1.6
6.8
8.4
2.1
1.8
Idea Cellular
Neutral
74
-
26,632
40,133
43,731
37.2
37.1
6.4
6.5
11.6
11.4
1.0
0.9
8.2
7.6
1.7
1.4
zOthers
Abbott India
Neutral
4,700
-
9,988
3,153
3,583
14.1
14.4
152.2
182.7
30.9
25.7
151.6
129.5
25.6
26.1
2.9
2.5
Bajaj Electricals
Buy
217
274
2,199
4,801
5,351
5.7
6.2
10.4
13.7
20.8
15.9
2.6
2.3
12.4
14.5
0.5
0.4
Finolex Cables
Neutral
415
-
6,342
2,883
3,115
12.0
12.1
14.2
18.6
29.2
22.3
15.5
13.6
15.8
14.6
1.9
1.7
Goodyear India*
Neutral
665
-
1,535
1,598
1,704
10.4
10.2
49.4
52.6
13.5
12.7
62.2
54.5
18.2
17.0
0.6
88.6
Hitachi
Neutral
1,366
-
3,714
2,081
2,433
8.8
8.9
33.4
39.9
40.9
34.2
33.0
27.5
22.1
21.4
1.8
1.5
Jyothy Laboratories
Neutral
337
-
6,126
1,440
2,052
11.5
13.0
8.5
10.0
39.7
33.7
9.6
8.9
18.6
19.3
4.5
3.2
Page Industries
Neutral
13,723
-
15,306
2,450
3,124
20.1
17.6
299.0
310.0
45.9
44.3
305.6
233.3
47.1
87.5
6.3
5.0
Relaxo Footwears
Neutral
402
-
4,827
2,085
2,469
9.2
8.2
7.6
8.0
53.2
50.6
20.6
17.6
17.9
18.8
2.4
2.1
Siyaram Silk Mills
Accumulate
1,285
1,605
1,205
1,733
1,948
11.6
11.7
96.6
114.7
13.3
11.2
2.0
1.8
15.3
15.7
0.9
0.8
Styrolution ABS India*
Neutral
589
-
1,035
1,440
1,537
9.2
9.0
40.6
42.6
14.5
13.8
37.0
33.7
12.3
11.6
0.7
0.6
TVS Srichakra
Neutral
3,208
-
2,456
2,304
2,614
13.7
13.8
231.1
266.6
13.9
12.0
360.5
283.8
33.9
29.3
1.1
0.9
HSIL
Neutral
276
-
1,996
2,384
2,515
15.8
16.3
15.3
19.4
18.1
14.2
17.9
15.4
7.8
9.3
1.0
0.9
Kirloskar Engines India
Neutral
326
-
4,713
2,554
2,800
9.9
10.0
10.5
12.1
31.0
26.9
13.0
12.3
10.7
11.7
1.5
1.3
Ltd
M M Forgings
Neutral
442
-
534
546
608
20.4
20.7
41.3
48.7
10.7
9.1
60.6
53.6
16.6
17.0
0.8
0.7
Stock Watch
January 02, 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 )
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
zOthers
Banco Products (India) Neutral
188
-
1,347
1,353
1,471
12.3
12.4
14.5
16.3
13.0
11.6
17.9
16.2
14.5
14.6
0.9
100.2
Competent Automobiles Neutral
161
-
99
1,137
1,256
3.1
2.7
28.0
23.6
5.7
6.8
30.9
27.9
14.3
11.5
0.1
0.1
Nilkamal
Neutral
1,263
-
1,885
1,995
2,165
10.7
10.4
69.8
80.6
18.1
15.7
72.2
62.7
16.6
16.5
0.9
0.8
Visaka Industries
Neutral
184
-
292
1,051
1,138
10.3
10.4
21.0
23.1
8.8
7.9
23.6
22.1
9.0
9.2
0.5
0.5
Transport Corporation of
Neutral
151
-
1,156
2,671
2,911
8.5
8.8
13.9
15.7
10.9
9.7
1.5
1.3
13.7
13.8
0.5
0.5
India
Elecon Engineering
Neutral
57
-
638
1,482
1,660
13.7
14.5
3.9
5.8
14.6
9.8
3.4
3.2
7.8
10.9
0.8
0.7
Surya Roshni
Neutral
175
-
765
3,342
3,625
7.8
7.5
17.3
19.8
10.1
8.8
19.2
15.4
10.5
10.8
0.5
0.4
MT Educare
Neutral
116
-
464
366
417
17.7
18.2
9.4
10.8
12.4
10.8
2.8
2.4
22.2
22.3
1.2
1.0
Radico Khaitan
Buy
112
147
1,490
1,667
1,824
13.0
13.2
6.7
8.2
16.8
13.7
1.5
1.4
9.0
10.2
1.3
1.1
Garware Wall Ropes
Neutral
614
-
1,343
873
938
14.3
14.3
35.2
37.5
17.5
16.4
3.1
2.6
17.5
15.9
1.4
1.3
Wonderla Holidays
Neutral
340
-
1,920
287
355
38.0
40.0
11.3
14.2
30.1
23.9
4.3
3.8
21.4
23.9
6.4
5.2
Linc Pen & Plastics
Neutral
230
-
341
382
420
9.3
9.5
13.5
15.7
17.1
14.7
2.9
2.5
17.1
17.3
1.0
0.9
The Byke Hospitality
Neutral
165
-
663
287
384
20.5
20.5
7.6
10.7
21.7
15.4
4.5
3.7
20.7
23.5
2.3
1.7
Interglobe Aviation
Neutral
821
-
29,693
21,122
26,005
14.5
27.6
110.7
132.1
7.4
6.2
44.4
31.7
168.5
201.1
1.4
1.1
Coffee Day Enterprises
Neutral
198
-
4,084
2,964
3,260
20.5
21.2
4.7
8.0
-
24.8
2.3
2.1
5.5
8.5
1.8
1.6
Ltd
Navneet Education
Neutral
111
-
2,637
1,062
1,147
24.0
24.0
6.1
6.6
18.2
16.7
3.7
3.3
20.6
19.8
2.6
2.4
Navkar Corporation
Buy
165
265
2,354
369
561
42.9
42.3
7.2
11.5
22.9
14.3
1.7
1.5
7.4
10.5
7.4
4.9
UFO Moviez
Neutral
411
-
1,134
619
685
33.2
33.4
30.0
34.9
13.7
11.8
1.9
1.6
13.8
13.9
1.5
1.2
VRL Logistics
Neutral
259
-
2,359
1,902
2,119
16.7
16.6
14.6
16.8
17.7
15.4
3.9
3.4
21.9
22.2
1.4
1.2
Team Lease Serv.
Neutral
886
-
1,515
3,229
4,001
1.5
1.8
22.8
32.8
38.9
27.0
4.2
3.6
10.7
13.4
0.4
0.3
S H Kelkar & Co.
Neutral
311
-
4,490
1,036
1,160
15.1
15.0
6.1
7.2
50.9
43.3
5.4
5.0
10.7
11.5
4.2
3.7
Quick Heal
Neutral
251
-
1,758
408
495
27.3
27.0
7.7
8.8
32.4
28.5
3.0
3.0
9.3
10.6
3.5
2.9
Narayana Hrudaya
Neutral
344
-
7,030
1,873
2,166
11.5
11.7
2.6
4.0
130.1
86.8
8.0
7.2
6.1
8.3
3.9
3.3
Manpasand Bever.
Neutral
546
-
3,121
836
1,087
19.6
19.4
16.9
23.8
32.3
22.9
3.9
3.4
12.0
14.8
3.5
2.6
Parag Milk Foods
Neutral
260
-
2,191
1,919
2,231
9.3
9.6
9.5
12.9
27.6
20.1
4.3
3.5
15.5
17.5
1.3
1.1
Mirza International
Buy
85
107
1,025
987
1,106
18.0
18.0
6.5
7.6
13.0
11.2
2.1
1.8
15.9
15.7
1.2
1.1
Asian Granito
Buy
216
351
650
1,071
1,182
12.1
12.4
12.7
16.0
17.0
13.5
1.6
1.5
9.5
10.7
0.9
0.8
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on December 30, 2016
Market Outlook
January 02, 2017
Research Team Tel: 022 - 39357800
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