Market Outlook
December 1, 2015
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are expected to open on positive note tracking the SGX Nifty and
BSE Sensex
0.1
17
26,146
most Asian markets.
Nifty
(0.1)
7
7,935
U.S. markets ended Monday's session in the red. The weakness on US Market
Mid Cap
0.1
5
10,990
reflected uncertainty ahead of several key events in the coming days, including the
Small Cap
0.8
91
11,636
release of the Labor Department's monthly jobs report on Friday.
Bankex
0.3
59
19,916
The majority of the European markets ended Monday's session in the green on
hopes for further ECB stimulus measures. The European Central Bank is will make its
Global Indices
Chg (%)
(Pts)
(Close)
announcement upon the conclusion of its policy meeting on Thursday.
Dow Jones
(0.4)
(79)
17,720
The Indian markets ended little changed on Monday as mixed global cues and
Nasdaq
(0.4)
11
5,109
rupee weakness kept investors on edge ahead of GDP data due out later in the day.
RBI is set to announce its fifth bi-monthly monetary policy statement today at 11am.
FTSE
(0.3)
(19)
6,356
It is expected that the central bank will maintain status-quo on rates.
Nikkei
(0.7)
(136)
19,747
Hang Seng
(0.3)
(72)
21,996
News & Result Analysis
Shanghai Com
0.3
9
3,445
India's GDP grows at 7.4% in Q2 FY16; manufacturing grows at robust 9.3%
Tata Global launches instant coffee brand to compete with Nescafe, Bru
Detailed analysis on Pg2
Advances / Declines
BSE
NSE
Advances
1,632
833
Investor’s Ready Reckoner
Declines
1,073
565
Key Domestic & Global Indicators
Unchanged
211
44
Stock Watch: Latest investment recommendations on 150+ stocks
Refer P4 onwards
Volumes (` Cr)
Top Picks
BSE
2,832
CMP
Target
Upside
Company
Sector
Rating
NSE
29,522
(`)
(`)
(%)
Axis Bank
Financials
Buy
469
630
34.3
HCL Tech
IT
Buy
872
1,132
29.9
Net Inflows (` Cr)
Net
Mtd
Ytd
ICICI Bank
Financials
Buy
274
357
30.1
FII
(1,043)
(9,029)
(20,856)
Ashok Leyland
Automobiles
Buy
95
111
17.5
MFs
601
8,500
56,045
Larsen & Toubro
Construction
Buy
1,374
1,646
19.8
More Top Picks on Pg3
Top Gainers
Price (`)
Chg (%)
Key Upcoming Events
Frl
166
15.0
Previous
Consensus
Date
Region
Event Description
Rtnpower
11
11.2
Reading
Expectations
Naukri
892
9.7
Dec 1
China
Manufacturing PMI (Nov)
49.8
-
Dec 1
Germany
Manufacturing PMI (Nov)
52.6
-
Welcorp
117
9.0
Dec 1
India
RBI Repo Rate
6.75%
-
Idbi
93
8.2
Dec 1
US
ISM Manufacturing PMI (Nov)
50.1
50.4
Top Losers
Price (`)
Chg (%)
Renuka
13
(9.5)
Torntpharm
1,433
(5.8)
Kailash
2
(4.8)
Godrejcp
1,230
(4.5)
Cox&kings
241
(4.5)
As on November 30, 2015
www.angelbroking.com
Market Outlook
December 1, 2015
India's GDP grows at 7.4% in Q2 FY16; manufacturing grows at
robust 9.3%
India's Gross Domestic Product (GDP) for the second quarter of the current
financial year grew at 7.4%. In a big boost for manufacturing, the sector grew at
9.3% versus 7.9% YoY. The growth in the agriculture, forestry and fishing, mining
and quarrying, electricity, gas, water supply & other utility services, construction
and public administration, defence and other services is estimated to be 2.2%,
3.2%, 6.7%, 2.6% and 4.7% respectively, during this period.
Stronger growth would be a boost for Prime Minister Narendra Modi who is
focussing on reforms to accelerate growth and hopes to convince his opponents to
implement a much-delayed GST in 2016. It is expected that the goods and
services tax - which seeks to unify India's 29 states into a single market - could
help raise GDP growth to around 8% in the next fiscal year.
While most emerging economies from Brazil to Russia are struggling amid global
headwinds and China's slowdown, India remains a bright spot due to its divergent
economy and gains from a decline in commodity prices. Sharp falls in the cost of
oil and gold imports are reducing the trade deficit and giving a net boost to
economic activity. Also, India's economy is mostly driven by domestic demand, and
a hike of over 16 per cent in wages of near 10 million government employees and
pensioners from January could boost consumer spending.
Tata Global launches instant coffee brand to compete with
Nescafe, Bru
India's second largest tea maker Tata Global Beverages has forayed into instant
coffee business in the country by launching Tata Coffee Grand, which will compete
with Nestle's Nescafe and Hindustan Unilever's Bru. The instant coffee brand was
jointly developed by Tata Global Beverages (TGBL) and group firm Tata Coffee,
which manufactures the product.
The coffee beans will be primarily sourced from Tata Coffee's plantations in South
India, popular for producing Arabica and Robusta blends. At present, the maker of
Tata Tea and Tetley brands earns over 70% of its sales from tea brands while
coffee business accounts for 20% through brands like Eight o'clock and Grand
outside India.
Economic and Political News
Transport Minister Nitin Gadkari gives nod for road projects in Punjab
Chennai Port Trust announces revival plan
Power deficit dips further, hits fresh record low of 2.4%
Corporate News
Nestle resumes Maggi production in Himachal plant
Bharti Airtel to shell out Rs 60,000 cr for network upgrade
Ashok Leyland bags order worth $200 million from Cote D'Ivoire
www.angelbroking.com
Market Outlook
December 1, 2015
Top Picks ★★★★★
Large Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
To outpace battery industry growth due to better technological
Amara Raja Batteries
14,950
875
1,040
18.8
products leading to market share gains in both the automotive
OEM and replacement segments.
Earnings to grow strongly given the MHCV cyclical upturn.
Ashok Leyland
26,894
95
111
17.5
Focus on exports and LCV's provides additional growth
avenue.
Healthy pace of branch expansion, backed by distribution
Axis Bank
1,11,486
469
630
34.3
network, will be the driving force for the bank’s retail business
and overall earnings.
The stock is trading at attractive valuations and is factoring all
HCL Tech
1,22,601
872
1,132
29.9
the bad news.
Strong visibility for a robust 20% earnings trajectory, coupled
HDFC Bank
2,70,945
1,076
1,262
17.3
with high quality of earnings on account of high quality retail
business and strategic focus on highly rated corporates.
Due to its robust franchise and capital adequacy position, the
bank is well positioned to grow by at least a few percentage
ICICI Bank
1,59,188
274
357
30.1
points higher than the average industry growth rate from a
structural point of view.
Back on the growth trend, expect a long term growth of 14%
Infosys
2,50,011
1,088
1,306
20.0
to be a US$20bn in FY2020.
Well positioned to benefit from such expected gradual
recovery in the overall domestic capex cycle, given its presence
Larsen & Toubro
1,27,878
1,374
1,646
19.8
across various infrastructure segments, its execution
capabilities, and its strong balance sheet.
LICHF continues to grow its retail loan book at a healthy pace
with improvement in asset quality. We expect the company to
LIC Housing Finance
24,464
485
571
17.8
post a healthy loan book which is likely to reflect in a strong
earnings growth.
Source: Company, Angel Research
Mid Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
Government thrust on Renewable sector and strong order
Inox Wind
8,008
361
505
39.9
book would drive future growth.
Change in business focus towards high-margin chronic and
Ipca labs
9,952
789
900
14.1
lifestyle segments and increasing penetration in Europe and
US
Economic recovery to have favourable impact on advertising &
circulation revenue growth. Further, the acquisition of a radio
Jagran Prakashan
4,886
149
169
13.1
business (Radio City) would also boost the company's revenue
growth.
Strong brand & quality teaching with innovative technologies
MT Educare
570
143
169
18.1
& higher government educational spending to boost growth
Earnings boost on back of stable material prices and
Radico Khaitan
1,511
114
156
37.3
favourable pricing environment. Valuation discount to peers
provides additional comfort
Strong brands and distribution network would boost growth
Siyaram Silk Mills
893
953
1,145
20.2
going ahead. Stock currently trades at an inexpensive
valuation.
Structural shift in the Lighting industry towards LED lighting will
Surya Roshni
626
143
183
28.2
drive growth.
Source: Company, Angel Research
www.angelbroking.com
Market Outlook
December 1, 2015
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
9.0
8.4
7.0
6.3
8.0
7.5
7.5
6.0
5.2
7.0
7.0
4.8
6.7
6.7
5.0
7.0
6.4
6.6
4.2
4.1
6.3
3.6
3.6
4.0
6.0
2.8
3.0
2.5
2.5
5.0
3.0
4.7
5.0
2.0
4.0
1.0
3.0
-
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
6.0
5.4
5.3
5.4
5.2
5.0
5.0
54.0
4.9
5.0
4.3
4.4
3.7
3.7
52.0
4.0
3.3
50.0
3.0
2.0
48.0
1.0
46.0
-
44.0
Source: MOSPI, Angel Research
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Exhibit 5: Exports and imports growth trends
Exhibit 6: Key policy rates
(%)
Exports yoy growth
Imports yoy growth
(%)
Repo rate
Reverse Repo rate
CRR
30.0
9.00
20.0
8.00
10.0
7.00
0.0
6.00
(10.0)
5.00
(20.0)
4.00
(30.0)
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
www.angelbroking.com
www.angelbroking.com
Market Outlook
December 1, 2015
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
6.9
6.0
5.3
4.9
4.7
4.0
2.8
2.3
2.0
1.6
2.0
1.2
1.1
0.8
(2.6)
-
(2.0)
(4.0)
(4.6)
(6.0)
Source: Bloomberg, Angel Research
Exhibit 2: 2015 GDP Growth projection by IMF (%, yoy) across select developing and developed countries
(%)
10.0
7.5
8.0
6.8
5.2
6.0
4.8
3.7
3.1
4.0
2.7
2.0
1.6
1.2
1.0
2.0
-
(2.0)
(4.0)
(1.0)
(3.8)
(6.0)
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
www.angelbroking.com
www.angelbroking.com
Market Outlook
December 1, 2015
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
1YR
Brazil
Bovespa
45,873
(1.6)
(17.6)
Russia
Micex
1,771
3.4
15.5
India
Nifty
7,935
(1.6)
(7.6)
China
Shanghai Composite
3,445
1.9
28.6
South Africa
Top 40
46,330
(4.1)
5.6
Mexico
Mexbol
44,248
(2.5)
0.1
Indonesia
LQ45
755
(0.6)
(15.6)
Malaysia
KLCI
1,672
0.4
(6.0)
Thailand
SET 50
869
(3.4)
(18.7)
USA
Dow Jones
17,720
(0.3)
(11.9)
UK
FTSE
6,356
(0.1)
(4.5)
Japan
Nikkei
19,747
4.2
14.2
Germany
DAX
11,382
4.9
14.0
France
CAC
4,958
1.2
12.9
Source: Bloomberg, Angel Research
www.angelbroking.com
www.angelbroking.com
Stock Watch
December 01, 2015
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 )
FY16E FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
Agri / Agri Chemical
Rallis
Neutral
188
-
3,656
2,075
2,394
14.4
14.4
9.5
11.0
19.8
17.1
3.9
3.4
21.1
21.3
1.8
1.6
United Phosphorus
Buy
416
510
17,830
13,698
15,752
17.6
17.6
32.1
38.5
13.0
10.8
2.5
2.1
21.4
21.3
1.4
1.2
Auto & Auto Ancillary
Ashok Leyland
Buy
95
111
26,894
18,763
22,357
11.1
11.2
3.6
4.8
26.3
19.7
4.9
4.5
18.7
22.6
1.4
1.1
Bajaj Auto
Accumulate
2,482
2,672
71,808
24,115
27,600
21.3
21.0
136.8
157.2
18.1
15.8
5.9
5.0
32.2
31.5
2.5
2.2
Bharat Forge
Buy
853
1,016
19,846
8,013
9,250
20.0
20.3
35.2
43.1
24.2
19.8
4.8
3.9
21.6
21.8
2.6
2.2
Eicher Motors
Accumulate
16,723
19,036
45,391
15,379
16,498
15.6
16.6
473.2
574.8
35.3
29.1
13.1
9.7
36.7
33.2
2.9
2.6
Hero Motocorp
Neutral
2,703
-
53,969
28,561
31,559
14.7
14.7
151.1
163.2
17.9
16.6
6.9
5.9
38.7
35.6
1.7
1.5
Jamna Auto Industries Accumulate
238
258
4,761
1,292
1,486
9.3
9.8
12.0
15.0
19.9
15.9
4.1
3.5
20.7
21.8
3.8
3.3
L G Balakrishnan & Bros Neutral
484
-
759
1,254
1,394
11.6
11.8
35.9
41.7
13.5
11.6
1.8
1.6
13.5
13.8
0.7
0.6
Mahindra and Mahindra Neutral
1,367
-
84,919
38,513
43,579
13.6
13.7
56.1
65.1
24.4
21.0
3.8
3.4
15.7
16.2
1.9
1.6
Maruti
Accumulate
4,577
4,960
138,253
57,865
68,104
16.4
16.7
176.3
225.5
26.0
20.3
5.0
4.3
19.4
21.2
2.2
1.8
Minda Industries
Neutral
870
-
1,381
2,567
2,965
8.0
8.3
46.1
57.8
18.9
15.1
3.2
2.6
16.7
17.3
0.6
0.5
Motherson Sumi
Accumulate
290
313
38,319
39,343
45,100
8.8
9.1
10.1
12.5
28.7
23.2
9.1
7.1
35.3
34.4
1.1
0.9
Rane Brake Lining
Accumulate
335
366
265
454
511
11.1
11.4
23.8
28.1
14.1
11.9
2.0
1.8
14.2
15.3
0.7
0.7
Setco Automotive
Neutral
217
-
580
594
741
12.7
13.7
8.4
15.8
25.9
13.7
2.7
2.3
10.4
16.9
1.4
1.2
Tata Motors
Neutral
423
-
122,230
255,254
301,772
12.9
13.4
23.7
37.3
17.9
11.4
2.2
1.8
7.4
12.1
0.7
0.6
TVS Motor
Neutral
307
-
14,580
11,845
14,040
7.2
9.0
10.4
17.4
29.5
17.6
7.4
5.6
25.1
32.0
1.2
1.0
Amara Raja Batteries
Buy
875
1,040
14,950
4,892
5,871
17.4
17.6
28.8
37.1
30.4
23.6
7.1
5.7
23.4
24.1
3.0
2.5
Exide Industries
Accumulate
148
162
12,618
6,950
7,784
14.4
14.8
6.6
7.3
22.5
20.3
2.8
2.6
12.6
12.8
1.5
1.4
Apollo Tyres
Accumulate
162
171
8,267
12,146
12,689
16.8
16.0
21.2
19.0
7.7
8.6
1.3
1.1
16.5
13.0
0.8
0.8
Ceat
Accumulate
1,024
1,119
4,141
6,041
6,597
14.1
13.7
99.5
111.9
10.3
9.2
2.0
1.7
19.6
18.5
0.8
0.7
JK Tyres
Neutral
100
-
2,269
7,446
7,669
15.2
14.0
19.6
18.4
5.1
5.4
1.3
1.1
25.2
19.5
0.7
0.6
Swaraj Engines
Neutral
904
-
1,123
552
630
14.2
14.7
44.6
54.1
20.3
16.7
4.7
4.3
23.2
25.6
1.9
1.6
Subros
Neutral
92
-
553
1,268
1,488
11.6
11.9
3.7
6.6
24.9
14.0
1.7
1.5
6.8
11.4
0.7
0.6
Indag Rubber
Neutral
228
-
598
283
329
17.0
17.2
13.0
15.4
17.6
14.8
3.8
3.2
21.8
21.6
1.8
1.5
Capital Goods
ACE
Neutral
47
-
468
660
839
4.7
8.2
1.0
3.9
47.3
12.1
1.5
1.3
3.2
11.3
0.9
0.7
BEML
Neutral
1,133
-
4,718
3,277
4,006
6.0
8.9
29.2
64.3
38.8
17.6
2.2
2.0
5.7
11.7
1.5
1.2
BGR Energy
Neutral
125
-
901
3,615
3,181
9.5
9.4
16.7
12.4
7.5
10.1
0.7
0.7
10.0
7.0
0.7
0.8
BHEL
Neutral
175
-
42,943
33,722
35,272
10.8
11.7
10.5
14.2
16.7
12.4
1.2
1.2
7.0
9.0
1.4
1.3
www.angelbroking.com
Stock Watch
December 01, 2015
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 )
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
Capital Goods
Blue Star
Accumulate
354
382
3,186
3,624
4,157
5.3
6.0
9.6
14.5
36.8
24.5
6.7
5.8
18.6
25.4
1.0
0.8
Crompton Greaves
Accumulate
193
204
12,090
13,484
14,687
4.9
6.2
4.5
7.1
42.9
27.2
3.0
2.8
7.2
10.8
1.0
0.9
Inox Wind
Buy
361
505
8,008
4,980
5,943
17.0
17.5
26.6
31.6
13.6
11.4
4.1
3.0
35.0
30.0
1.8
1.4
KEC International
Neutral
158
-
4,066
8,791
9,716
6.1
6.8
5.4
8.2
29.3
19.3
2.9
2.7
10.0
14.0
0.7
0.6
Thermax
Neutral
869
-
10,355
6,413
7,525
7.4
8.5
30.5
39.3
28.5
22.1
4.4
3.8
15.0
17.0
1.6
1.3
Cement
ACC
Buy
1,347
1,630
25,289
13,151
14,757
16.4
18.3
63.9
83.4
21.1
16.2
2.7
2.5
13.3
16.1
1.8
1.5
Ambuja Cements
Buy
199
233
30,859
11,564
12,556
19.4
20.7
8.9
10.1
22.3
19.7
2.8
2.7
12.8
13.8
2.3
2.1
HeidelbergCement
Neutral
76
-
1,730
1,772
1,926
13.3
15.4
1.0
3.0
76.4
25.5
1.9
1.8
2.6
7.9
1.6
1.3
India Cements
Buy
89
112
2,726
4,216
4,840
18.0
19.5
4.0
9.9
22.2
9.0
0.9
0.8
4.0
9.5
1.0
0.8
JK Cement
Accumulate
692
744
4,837
3,661
4,742
10.1
15.8
18.0
61.0
38.4
11.3
2.8
2.5
7.5
22.9
1.8
1.4
J K Lakshmi Cement
Buy
357
430
4,204
2,947
3,616
16.7
19.9
11.5
27.2
31.1
13.1
3.0
2.5
9.8
20.8
1.8
1.5
Mangalam Cements
Neutral
203
-
542
1,053
1,347
10.5
13.3
8.4
26.0
24.2
7.8
1.0
0.9
4.3
12.5
0.9
0.7
Orient Cement
Accumulate
166
183
3,399
1,854
2,524
21.2
22.2
7.7
11.1
21.6
15.0
3.1
2.7
13.3
15.7
2.6
1.8
Ramco Cements
Neutral
378
-
9,002
4,036
4,545
20.8
21.3
15.1
18.8
25.0
20.1
3.1
2.7
12.9
14.3
2.7
2.4
Shree Cement^
Neutral
11,100
-
38,669
7,150
8,742
26.7
28.6
228.0
345.5
48.7
32.1
7.2
6.0
15.7
20.3
5.2
4.1
UltraTech Cement
Buy
2,807
3,282
77,026
25,021
30,023
19.1
21.6
89.0
132.0
31.5
21.3
3.7
3.2
12.2
15.9
3.1
2.6
Construction
ITNL
Neutral
90
-
2,944
7,360
8,825
34.0
35.9
7.0
9.0
12.8
9.9
0.4
0.4
3.2
3.7
3.8
3.6
KNR Constructions
Accumulate
609
673
1,713
937
1,470
14.3
14.0
33.5
38.6
18.2
15.8
2.8
2.4
15.4
15.4
1.9
1.2
Larsen & Toubro
Buy
1,374
1,646
127,878
65,065
77,009
11.5
11.7
61.5
65.6
22.3
21.0
2.3
2.1
13.4
14.0
2.2
1.8
Gujarat Pipavav Port
Neutral
162
-
7,817
629
684
51.0
52.2
6.4
5.9
25.3
27.4
3.3
3.1
15.9
12.7
12.1
10.9
MBL Infrastructures
Buy
219
285
909
2,313
2,797
12.2
14.6
19.0
20.0
11.5
11.0
1.2
1.1
11.3
10.6
1.1
1.0
Nagarjuna Const.
Neutral
78
-
4,320
7,892
8,842
8.8
9.1
3.0
5.3
25.9
14.7
1.3
1.2
5.0
8.5
0.8
0.7
PNC Infratech
Neutral
534
-
2,741
1,873
2,288
13.2
13.5
24.0
32.0
22.3
16.7
2.2
1.9
12.1
12.3
1.6
1.3
Simplex Infra
Neutral
334
-
1,654
5,955
6,829
10.3
10.5
16.0
31.0
20.9
10.8
1.1
1.0
5.3
9.9
0.8
0.7
Power Mech Projects
Neutral
612
-
900
1,539
1,801
12.8
12.7
59.0
72.1
10.4
8.5
1.6
1.3
18.6
16.8
0.6
0.5
Sadbhav Engineering
Neutral
349
-
5,986
3,481
4,219
10.7
10.8
8.0
12.0
43.6
29.1
4.1
3.6
10.3
13.5
2.0
1.6
NBCC
Accumulate
1,008
1,089
12,090
7,382
9,506
7.7
8.6
39.8
54.4
25.3
18.5
6.1
4.8
26.7
29.1
1.4
1.0
SIPL
Neutral
101
-
3,557
675
1,042
62.4
64.7
-
-
3.8
4.3
-
-
16.9
11.4
Financials
Allahabad Bank
Neutral
77
-
4,627
8,332
9,259
2.8
2.8
21.0
25.6
3.7
3.0
0.4
0.3
9.8
10.9
-
-
www.angelbroking.com
Stock Watch
December 01, 2015
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 )
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
Financials
Axis Bank
Buy
469
630
111,486
26,473
31,527
3.5
3.6
35.7
43.5
13.1
10.8
2.5
2.2
17.9
18.9
-
-
Bank of Baroda
Neutral
180
-
41,440
19,105
21,474
2.0
2.0
19.1
24.8
9.4
7.3
1.0
0.9
10.2
12.1
-
-
Bank of India
Neutral
131
-
10,398
15,972
17,271
1.9
2.0
15.3
33.4
8.6
3.9
0.4
0.3
3.6
7.6
-
-
Canara Bank
Neutral
273
-
14,807
15,251
16,725
2.0
2.0
59.3
68.6
4.6
4.0
0.5
0.4
10.1
10.7
-
-
Dena Bank
Neutral
42
-
2,365
3,440
3,840
2.1
2.3
7.3
10.0
5.8
4.2
0.4
0.4
6.1
7.9
-
-
Federal Bank
Neutral
59
-
10,058
3,477
3,999
3.0
3.0
5.0
6.2
11.7
9.4
1.2
1.1
10.6
11.9
-
-
HDFC
Neutral
1,217
-
192,035
10,358
11,852
3.3
3.3
41.1
47.0
29.6
25.9
5.6
5.1
24.7
24.9
-
-
HDFC Bank
Buy
1,076
1,262
270,945
38,309
47,302
4.3
4.3
49.3
61.1
21.8
17.6
3.8
3.2
18.5
19.7
-
-
ICICI Bank
Buy
274
357
159,188
35,168
40,517
3.4
3.4
21.4
25.2
12.8
10.9
2.2
1.8
14.7
15.2
-
-
IDBI Bank
Neutral
93
-
14,989
9,625
10,455
1.8
1.8
8.5
14.2
11.0
6.6
0.7
0.6
5.9
9.3
-
-
Indian Bank
Neutral
132
-
6,345
6,160
6,858
2.5
2.5
24.5
29.8
5.4
4.4
0.4
0.4
7.7
8.6
-
-
LIC Housing Finance
Buy
485
571
24,464
3,101
3,745
2.5
2.5
33.0
40.2
14.7
12.1
2.7
2.3
19.7
20.5
-
-
Oriental Bank
Neutral
156
-
4,672
7,643
8,373
2.4
2.4
37.2
45.4
4.2
3.4
0.4
0.3
8.2
9.4
-
-
Punjab Natl.Bank
Neutral
145
-
28,403
23,638
26,557
2.8
2.8
17.9
27.2
8.1
5.3
0.8
0.7
8.5
12.0
-
-
South Ind.Bank
Neutral
20
-
2,714
1,965
2,185
2.5
2.5
2.5
3.3
8.1
6.1
0.8
0.7
9.5
11.7
-
-
St Bk of India
Accumulate
250
283
194,419
82,520
93,299
2.7
2.8
20.0
24.5
12.5
10.2
1.4
1.2
11.5
12.8
-
-
Union Bank
Neutral
173
-
11,858
12,646
14,129
2.3
2.4
31.0
39.1
5.6
4.4
0.6
0.5
9.8
11.4
-
-
Vijaya Bank
Neutral
35
-
2,985
3,536
3,827
1.9
1.9
5.5
6.7
6.3
5.2
0.5
0.5
7.8
8.8
-
-
Yes Bank
Buy
767
914
32,099
7,228
9,043
3.2
3.3
57.7
69.4
13.3
11.1
2.4
2.0
19.1
19.6
-
-
FMCG
Asian Paints
Neutral
840
-
80,616
16,553
19,160
16.0
16.2
17.7
21.5
47.6
39.1
12.6
11.4
29.4
31.2
4.7
4.1
Britannia
Neutral
2,924
-
35,080
8,065
9,395
9.6
10.2
47.2
65.5
61.9
44.6
20.6
19.5
38.3
41.2
4.2
3.6
Colgate
Neutral
971
-
26,400
4,836
5,490
19.5
19.7
48.5
53.2
20.0
18.2
14.7
12.8
99.8
97.5
5.3
4.7
Dabur India
Neutral
274
-
48,075
9,370
10,265
17.1
17.2
7.3
8.1
37.3
33.8
11.3
9.2
33.7
30.6
5.0
4.6
GlaxoSmith Con*
Neutral
5,855
-
24,622
4,919
5,742
17.2
17.4
168.3
191.2
34.8
30.6
9.9
8.4
28.8
28.9
4.6
3.9
Godrej Consumer
Neutral
1,230
-
41,880
10,168
12,886
16.1
16.1
32.1
38.4
38.3
32.0
7.8
7.2
19.7
21.0
4.2
3.3
HUL
Neutral
809
-
175,154
34,940
38,957
17.5
17.7
20.8
24.7
38.9
32.8
43.3
34.6
110.5
114.2
4.8
4.3
ITC
Buy
343
409
275,469
41,068
45,068
37.8
37.4
13.9
15.9
24.7
21.6
8.3
7.3
34.1
33.8
6.3
5.7
Marico
Neutral
423
-
27,300
6,551
7,766
15.7
16.0
10.4
12.5
40.8
33.9
11.8
9.8
33.2
32.4
4.1
3.5
Nestle*
Accumulate
5,873
6,646
56,622
11,291
12,847
22.2
22.3
158.9
184.6
37.0
31.8
19.3
17.4
55.0
57.3
4.9
4.2
www.angelbroking.com
Stock Watch
December 01, 2015
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 )
FY16E FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FMCG
Tata Global
Neutral
138
-
8,687
8,635
9,072
9.8
9.9
6.5
7.6
21.2
18.1
2.1
2.0
6.8
7.4
0.9
0.9
IT
HCL Tech^
Buy
872
1,132
122,601
42,038
47,503
23.2
23.5
55.8
62.9
15.6
13.9
3.6
2.7
23.0
19.8
2.5
2.0
Infosys
Buy
1,088
1,306
250,011
60,250
66,999
28.0
28.0
58.3
63.7
18.7
17.1
3.9
3.4
20.9
19.7
3.5
3.0
TCS
Buy
2,365
3,165
466,055
111,274
126,852
28.4
28.7
125.4
143.9
18.9
16.4
7.5
6.9
39.9
42.2
3.8
3.3
Tech Mahindra
Buy
533
646
51,319
25,566
28,890
16.0
17.0
26.3
31.9
20.3
16.7
3.7
3.1
17.9
18.6
1.8
1.5
Wipro
Buy
573
719
141,451
52,414
58,704
23.7
23.8
38.4
42.3
14.9
13.5
2.9
2.6
19.5
18.0
2.3
1.9
Media
D B Corp
Accumulate
327
356
6,003
2,241
2,495
27.8
27.9
21.8
25.6
15.0
12.8
3.9
3.5
26.7
28.5
2.6
2.3
HT Media
Neutral
83
-
1,920
2,495
2,603
11.2
11.2
7.3
8.6
11.3
9.6
0.9
0.8
7.4
8.1
0.3
0.3
Jagran Prakashan
Accumulate
149
169
4,886
2,170
2,355
27.0
27.6
12.8
10.3
11.6
14.5
3.2
3.0
21.8
19.4
2.0
1.7
Sun TV Network
Neutral
401
-
15,821
2,779
3,196
70.2
70.5
22.8
27.3
17.6
14.7
4.3
3.9
26.7
28.3
5.4
4.7
Hindustan Media
Neutral
289
-
2,121
920
1,031
20.0
20.0
19.2
20.9
15.1
13.8
2.5
2.1
16.4
15.3
1.8
1.6
Ventures
Metals & Mining
Coal India
Accumulate
331
380
208,882
76,167
84,130
19.9
22.3
22.4
25.8
14.8
12.8
5.3
5.2
35.5
41.0
2.1
1.9
Hind. Zinc
Buy
144
175
60,718
14,641
14,026
50.4
50.4
17.7
16.0
8.1
9.0
1.2
1.1
16.2
13.2
1.8
1.6
Hindalco
Neutral
77
-
15,911
104,356
111,186
8.7
9.5
6.7
11.1
11.5
7.0
0.4
0.4
3.5
5.9
0.7
0.6
JSW Steel
Neutral
904
-
21,860
42,308
45,147
16.4
20.7
(10.3)
49.5
18.3
1.0
1.0
(1.0)
5.6
1.6
1.5
NMDC
Neutral
95
-
37,546
8,237
10,893
46.6
44.5
10.0
11.7
9.5
8.1
1.1
0.9
12.5
13.0
4.4
3.3
SAIL
Neutral
46
-
18,895
45,915
53,954
7.2
10.5
1.5
4.4
30.4
10.5
0.4
0.4
2.3
4.1
1.1
0.9
Vedanta
Neutral
90
-
26,697
71,445
81,910
26.2
26.3
12.9
19.2
7.0
4.7
0.5
0.4
7.2
8.9
0.8
0.6
Tata Steel
Neutral
230
-
22,343
126,760
137,307
8.9
11.3
6.4
23.1
36.2
10.0
0.7
0.7
2.0
7.1
0.8
0.7
Oil & Gas
Cairn India
Neutral
134
-
25,198
11,323
12,490
49.4
51.0
20.7
20.7
6.5
6.5
0.4
0.4
6.4
6.1
1.3
0.7
GAIL
Neutral
365
-
46,331
64,856
70,933
9.1
9.6
24.0
28.9
15.2
12.7
1.3
1.2
8.8
9.6
0.9
0.8
ONGC
Neutral
234
-
200,455
154,564
167,321
36.8
37.4
28.6
32.5
8.2
7.2
1.0
1.0
12.7
13.5
1.5
1.4
Petronet LNG
Neutral
234
-
17,569
29,691
31,188
5.8
6.2
12.8
13.4
18.3
17.5
2.7
2.4
15.8
14.8
0.7
0.6
Indian Oil Corp
Accumulate
421
455
102,180
359,607
402,760
5.9
6.1
42.5
48.7
9.9
8.6
1.3
1.2
14.1
14.4
0.4
0.3
Reliance Industries
Accumulate
968
1,050
313,480
304,775
344,392
12.6
13.4
91.3
102.6
10.6
9.4
1.2
1.1
11.8
12.0
1.0
0.8
Pharmaceuticals
Alembic Pharma
Neutral
692
-
13,042
2,658
3,112
24.1
20.2
24.6
23.9
28.1
29.0
10.1
7.7
42.5
30.2
4.9
4.1
Aurobindo Pharma
Accumulate
811
872
47,339
14,923
17,162
23.0
23.0
38.2
43.6
21.2
18.6
6.5
4.9
36.0
30.2
3.5
3.0
Aventis*
Neutral
4,284
-
9,866
2,082
2,371
17.4
20.8
118.2
151.5
36.2
28.3
5.3
4.3
19.9
25.5
4.4
3.7
Cadila Healthcare
Neutral
399
-
40,852
10,224
11,840
21.0
22.0
14.6
17.6
27.3
22.7
7.5
5.9
30.8
29.0
4.1
3.4
www.angelbroking.com
Stock Watch
December 01, 2015
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 )
FY16E FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
Pharmaceuticals
Cipla
Neutral
644
-
51,720
14,211
16,611
20.6
19.0
27.0
28.9
23.9
22.3
4.1
3.5
18.4
16.8
3.6
3.0
Dr Reddy's
Buy
3,110
3,933
53,029
16,838
19,575
25.0
23.1
167.5
178.8
18.6
17.4
3.9
3.3
23.1
20.4
3.1
2.6
Dishman Pharma
Neutral
319
-
2,570
1,733
1,906
21.5
21.5
17.0
19.9
18.7
16.0
1.9
1.7
10.5
11.2
2.0
1.7
GSK Pharma*
Neutral
3,288
-
27,852
2,870
3,158
20.0
22.1
59.5
68.3
55.3
48.1
16.3
16.8
28.5
34.3
9.2
8.4
Indoco Remedies
Neutral
321
-
2,953
1,033
1,199
15.9
18.2
9.4
13.6
34.1
23.6
5.1
4.3
15.7
19.7
2.9
2.5
Ipca labs
Accumulate
789
900
9,952
3,363
3,909
12.9
18.6
13.4
28.0
58.9
28.2
7.7
6.1
7.4
14.0
3.3
2.8
Lupin
Neutral
1,791
-
80,623
13,092
16,561
25.0
27.0
50.4
68.3
35.5
26.2
7.3
5.8
22.8
24.7
5.9
4.5
Sun Pharma
Buy
731
950
175,826
28,163
32,610
25.8
30.7
17.4
26.9
42.0
27.2
4.0
3.5
13.0
16.6
5.7
4.7
Power
Tata Power
Neutral
67
-
18,080
35,923
37,402
22.6
22.8
4.1
5.2
16.5
13.0
1.3
1.2
7.5
9.3
1.5
1.3
NTPC
Buy
131
157
108,016
87,064
98,846
23.5
23.5
11.7
13.2
11.2
9.9
1.3
1.2
11.4
12.1
2.3
2.0
Power Grid
Buy
136
170
71,123
20,702
23,361
86.7
86.4
12.1
13.2
11.3
10.3
1.7
1.5
15.6
15.1
8.4
7.8
Telecom
Bharti Airtel
Neutral
335
-
133,713
101,748
109,191
32.1
31.7
12.0
12.5
27.9
26.8
1.9
1.8
6.9
6.7
2.0
1.8
Idea Cellular
Neutral
141
-
50,899
34,282
36,941
32.0
31.5
5.9
6.2
24.0
22.8
2.2
2.0
9.9
9.3
2.1
1.9
zOthers
Abbott India
Neutral
5,207
-
11,064
2,715
3,153
14.5
14.1
134.3
152.2
38.8
34.2
9.7
8.0
27.4
25.6
3.8
3.2
Bajaj Electricals
Buy
220
341
2,215
4,719
5,287
5.2
5.8
8.6
12.7
25.7
17.3
2.9
2.6
11.4
14.8
0.5
0.4
Finolex Cables
Neutral
255
-
3,892
2,520
2,883
12.2
12.0
12.7
14.2
20.1
17.9
2.7
2.4
13.6
13.5
1.3
1.1
Goodyear India*
Accumulate
557
622
1,284
1,888
1,680
12.1
11.9
62.2
56.6
9.0
9.8
2.1
1.8
25.9
19.7
0.5
0.5
Hitachi
Neutral
1,340
-
3,642
1,779
2,081
7.8
8.8
21.8
33.4
61.5
40.1
9.9
8.0
17.4
22.1
2.1
1.8
Jyothy Laboratories
Neutral
313
-
5,676
1,620
1,847
11.5
11.5
7.3
8.5
43.0
37.0
5.6
5.2
13.3
14.4
3.4
2.9
MRF
Buy
38,862
45,575
16,482
20,316
14,488
21.4
21.1
5,488.0
3,798.0
7.1
10.2
2.4
2.0
41.1
21.2
0.8
1.0
Page Industries
Neutral
12,995
-
14,494
1,929
2,450
19.8
20.1
229.9
299.0
56.5
43.5
24.9
17.3
52.1
47.1
7.5
5.9
Relaxo Footwears
Neutral
507
-
6,084
1,767
2,152
12.3
12.5
19.3
25.1
26.3
20.2
6.5
5.0
27.7
27.8
3.5
2.8
Siyaram Silk Mills
Buy
953
1,145
893
1,636
1,815
11.5
11.5
89.9
104.1
10.6
9.2
1.8
1.5
17.9
17.8
0.7
0.6
Styrolution ABS India*
Neutral
729
-
1,282
1,271
1,440
8.6
9.2
32.0
41.1
22.8
17.8
2.3
2.1
10.7
12.4
1.0
0.8
TVS Srichakra
Accumulate
2,916
3,240
2,233
2,101
2,338
15.7
15.0
248.6
270.0
11.7
10.8
5.1
3.7
43.6
34.0
1.1
0.9
HSIL
Neutral
319
-
2,305
2,123
2,384
16.1
16.5
15.0
18.9
21.2
16.9
1.7
1.5
8.0
9.4
1.4
1.3
Kirloskar Engines India
Neutral
263
-
3,805
2,471
2,826
8.8
10.4
9.1
13.3
28.8
19.7
2.7
2.6
9.7
13.4
1.2
1.0
Ltd
M M Forgings
Buy
511
614
617
511
615
21.7
21.6
43.1
55.8
11.9
9.2
2.2
1.8
19.9
21.2
1.4
1.1
Banco Products (India)
Neutral
141
-
1,008
1,208
1,353
11.0
12.3
10.8
14.5
13.1
9.7
1.5
1.3
11.9
14.5
0.8
0.7
www.angelbroking.com
Stock Watch
December 01, 2015
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 )
FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E
zOthers
Competent Automobiles Neutral
153
-
94
1,040
1,137
3.2
3.1
25.7
28.0
6.0
5.5
0.9
0.8
15.0
14.3
0.1
0.1
Nilkamal
Neutral
1,025
-
1,530
1,910
2,083
10.5
10.3
63.3
69.2
16.2
14.8
2.6
2.3
17.6
16.5
0.9
0.7
Visaka Industries
Buy
122
144
193
1,086
1,197
9.9
10.3
21.5
28.8
5.7
4.2
0.5
0.5
9.6
11.6
0.4
0.3
Transport Corporation of
Neutral
323
-
2,456
2,830
3,350
8.8
9.0
14.4
18.3
22.5
17.6
3.5
3.0
15.4
17.1
1.0
0.9
India
Elecon Engineering
Neutral
87
-
949
1,369
1,533
13.7
14.9
3.3
6.1
26.3
14.4
1.7
1.6
6.6
11.4
1.0
0.9
Surya Roshni
Buy
143
183
626
2,992
3,223
8.1
8.4
14.7
18.3
9.7
7.8
0.9
0.8
9.7
11.0
0.5
0.5
MT Educare
Buy
143
169
570
286
366
18.3
17.7
7.7
9.4
18.5
15.3
3.9
3.4
20.2
21.1
1.9
1.4
Radico Khaitan
Buy
114
156
1,511
1,565
1,687
12.2
13.0
5.7
7.1
19.9
16.0
1.7
1.5
8.3
9.6
1.4
1.3
Garware Wall Ropes
Accumulate
392
423
858
861
967
10.9
10.9
24.0
28.2
16.3
13.9
2.4
2.1
14.6
14.9
1.0
0.9
Wonderla Holidays
Neutral
359
-
2,030
206
308
44.0
43.6
9.0
12.9
39.9
27.8
5.5
4.9
13.7
17.8
9.8
6.5
Linc Pen & Plastics
Neutral
185
-
274
340
371
8.3
8.9
10.8
13.2
17.2
14.0
2.7
2.4
16.0
17.1
0.8
0.8
The Byke Hospitality
Accumulate
167
181
668
222
287
20.5
20.5
5.6
7.6
29.6
22.1
5.6
4.6
18.9
20.8
3.0
2.3
Interglobe Aviation
Neutral
1,110
-
40,005
17,022
21,122
20.7
14.5
63.9
53.7
17.4
20.7
26.0
21.3
149.9
103.2
2.4
1.9
Coffee Day Enterprises
Neutral
255
-
5,257
2,692
2,964
17.0
18.6
-
4.7
-
53.9
3.1
3.0
0.2
5.5
2.4
2.2
Ltd
Navneet Education
Accumulate
86
97
431
998
1,062
24.1
24.0
5.8
6.1
14.9
14.1
3.3
2.9
22.0
20.6
0.5
0.5
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on November 30, 2015
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Market Outlook
December 01, 2015
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
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