Market Outlook
December 4, 2015
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are expected to open on a negative note tracking the SGX Nifty and
BSE Sensex
(0.9)
(231)
25,887
most Asian markets.
Nifty
(0.9)
(67)
7,864
Reflecting concerns about the outlook for monetary policy, U.S. markets moved
Mid Cap
(0.4)
(47)
11,051
sharply lower over the course of the trading session on Thursday.
Small Cap
(0.5)
(58)
11,632
The Europe markets fell sharply in the overnight trading session, with investors
Bankex
(0.6)
(115)
19,539
disappointed by the European Central Bank's (ECB) meagre rate cut and extended
stimulus measures.
Global Indices
Chg (%)
(Pts)
(Close)
The Indian market closed on negative note mainly due to a decline in the FMCG,
Dow Jones
(1.4)
(252)
17,478
Auto, banking shares. Further, fears of Fed rate hike this month also dampened
Nasdaq
(1.7)
(86)
5,038
sentiment.
FTSE
(2.3)
(146)
6,275
News & Result Analysis
Nikkei
0.1
2
19,940
Dena Bank gets board approval to dilute government stake
Hang Seng
(0.3)
(63)
22,417
AstraZeneca Pharma India to close Bengaluru API unit
Shanghai Com
1.4
48
3,585
Detailed analysis on Pg2
Investor’s Ready Reckoner
Advances / Declines
BSE
NSE
Key Domestic & Global Indicators
Advances
1,243
560
Stock Watch: Latest investment recommendations on 150+ stocks
Declines
1,542
963
Refer P4 onwards
Unchanged
138
69
Top Picks
CMP
Target
Upside
Volumes (` Cr)
Company
Sector
Rating
(`)
(`)
(%)
BSE
3,096
Axis Bank
Financials
Buy
462
630
36.2
NSE
15,980
HCL Tech
IT
Buy
850
1,132
33.2
ICICI Bank
Financials
Buy
266
357
34.1
Net Inflows (` Cr)
Net
Mtd
Ytd
Ashok Leyland
Automobiles
Buy
92
111
20.8
Larsen & Toubro
Construction
Buy
1,348
1,646
22.1
FII
(611)
(6,262)
(21,082)
More Top Picks on Pg3
MFs
521
1,113
56,868
Key Upcoming Events
Previous
Consensus
Top Gainers
Price (`)
Chg (%)
Date
Region
Event Description
Reading
Expectations
Bhusanstl
49
12.8
Dec 4
US
Unemployment Rate (Nov)
5%
5%
Hathway
46
10.9
Dec 8
UK
Manufacturing Production (MoM) (Oct)
0.8%
-
Amtekauto
48
9.6
Dec 9
China
CPI (YoY) (Nov)
1.3%
1.4%
Tv18brdcst
39
9.1
Dec 10
UK
Interest Rate Decision (Dec)
0.5%
0.5%
Rcom
84
6.6
Top Losers
Price (`)
Chg (%)
Justdial
869
(5.1)
Gppl
156
(4.0)
Jktyre
108
(3.9)
Iifl
203
(3.8)
Apollotyre
159
(3.4)
As on December 03, 2015
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Market Outlook
December 4, 2015
Dena Bank gets board approval to dilute government stake
Public sector lender Dena Bank has got board approval for dilution of government
holding to up to 52 per cent and raise capital up to `2,500cr from various
bonds. Government shareholding in the bank was 65 per cent at the end of
September 30. Last year, the government allowed public sector banks to to bring
down its stake to 52 per cent so as to meet capital requirement.
As per law, government holding at any moment must not come below 51 per cent
to maintain the public sector character of the state-owned banks.
The Dena bank has got board approval to raise Additional Tier-1 (AT1) capital up
to an amount of `1,500cr in one or more tranche, in one or more instruments.
Further the bank has also got board approval to raise Tier 2 capital up to an
amount of `1,000cr in one or more tranche, in one or more instruments.
AstraZeneca Pharma India to close Bengaluru API unit
Drug firm AstraZeneca Pharma India will close its Active Pharmaceutical Ingredient
(API) unit at Bengaluru due to low demand for the product in the export markets.
The company, however, did not disclose what it intended to do with the employees
working at the respective unit.
The Board took the decision as Terbutaline Sulphate (TBS) was the last API to be
manufactured at the API unit and no other API manufacturing activity is planned to
be carried out at this unit in the future. The decision was taken following an
application to the Drug Controller General of India (DCGI) to withdraw the
manufacturing licence for TBS, AstraZeneca Pharma India. The product was
manufactured primarily for export and the company applied to withdraw the
licence following low demand in the export markets.
Economic and Political News
Cotton exports may grow 18% in 2015-16: Union Textile Minister Santosh
Gangwar
Gas prices in India to fall 16% next year
India to grow at 7.4% this fiscal: S&P
Corporate News
Titan helps Montblanc re-enter India with a JV
Ajanta Pharma launches generic asthma treatment tablets in US
Jet Airways ATR planes cleared for low visibility operations
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Market Outlook
December 4, 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
14,682
860
1,040
21.0
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
26,139
92
111
20.8
Focus on exports and LCV's provides additional growth
avenue.
Healthy pace of branch expansion, backed by distribution
Axis Bank
1,09,952
462
630
36.2
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
1,19,570
850
1,132
33.2
the bad news.
Strong visibility for a robust 20% earnings trajectory, coupled
HDFC Bank
2,70,869
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
1,54,484
266
357
34.1
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
2,42,557
1,056
1,306
23.7
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
1,25,467
1,348
1,646
22.1
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
23,621
468
571
22.0
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
8,009
361
505
39.9
book would drive future growth.
Change in business focus towards high-margin chronic and
Ipca labs
9,731
771
900
16.7
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
4,928
151
169
12.1
business (Radio City) would also boost the company's revenue
growth.
Strong brand & quality teaching with innovative technologies &
MT Educare
559
140
169
20.5
higher government educational spending to boost growth
Earnings boost on back of stable material prices and
Radico Khaitan
1,478
111
156
40.4
favourable pricing environment. Valuation discount to peers
provides additional comfort
Strong brands and distribution network would boost growth
Siyaram Silk Mills
987
1,053
1,145
8.8
going ahead. Stock currently trades at an inexpensive
valuation.
Structural shift in the Lighting industry towards LED lighting will
Surya Roshni
611
139
183
31.3
drive growth.
Source: Company, Angel Research
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Market Outlook
December 4, 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
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Market Outlook
December 4, 2015
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
6.9
5.3
6.0
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
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Market Outlook
December 4, 2015
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
1YR
Brazil
Bovespa
46,393
1.1
(15.8)
Russia
Micex
1,787
3.0
12.9
India
Nifty
7,864
(2.5)
(8.4)
China
Shanghai Composite
3,585
2.7
38.4
South Africa
Top 40
45,371
(6.5)
3.2
Mexico
Mexbol
43,027
(3.4)
0.0
Indonesia
LQ45
784
(2.0)
(12.0)
Malaysia
KLCI
1,674
0.6
(8.5)
Thailand
SET 50
861
(5.7)
(18.4)
USA
Dow Jones
17,478
(2.0)
(2.4)
UK
FTSE
6,275
(1.7)
(6.9)
Japan
Nikkei
19,940
4.5
14.9
Germany
DAX
10,789
(1.5)
9.5
France
CAC
4,730
(4.2)
10.9
Source: Bloomberg, Angel Research
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Stock Watch
December 04, 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
185
-
3,594
2,075
2,394
14.4
14.4
9.5
11.0
19.5
16.8
3.9
3.3
21.1
21.3
1.8
1.5
United Phosphorus
Buy
422
510
18,076
13,698
15,752
17.6
17.6
32.1
38.5
13.1
11.0
2.6
2.1
21.4
21.3
1.4
1.2
Auto & Auto Ancillary
Ashok Leyland
Buy
92
111
26,139
18,763
22,357
11.1
11.2
3.6
4.8
25.5
19.1
4.7
4.3
18.7
22.6
1.3
1.1
Bajaj Auto
Accumulate
2,481
2,672
71,795
24,115
27,600
21.3
21.0
136.8
157.2
18.1
15.8
5.8
5.0
32.2
31.5
2.5
2.2
Bharat Forge
Buy
865
1,016
20,141
8,013
9,250
20.0
20.3
35.2
43.1
24.6
20.1
4.9
4.0
21.6
21.8
2.6
2.2
Eicher Motors
Accumulate
16,644
19,036
45,176
15,379
16,498
15.6
16.6
473.2
574.8
35.2
29.0
13.0
9.7
36.7
33.2
2.9
2.6
Hero Motocorp
Neutral
2,618
-
52,285
28,561
31,559
14.7
14.7
151.1
163.2
17.3
16.0
6.7
5.7
38.7
35.6
1.7
1.5
Jamna Auto Industries Buy
116
258
2,324
1,292
1,486
9.3
9.8
12.0
15.0
9.7
7.8
2.0
1.7
20.7
21.8
1.9
1.6
L G Balakrishnan & Bros Neutral
490
-
770
1,254
1,394
11.6
11.8
35.9
41.7
13.7
11.8
1.9
1.6
13.5
13.8
0.7
0.6
Mahindra and Mahindra Neutral
1,349
-
83,767
38,513
43,579
13.6
13.7
56.1
65.1
24.0
20.7
3.8
3.4
15.7
16.2
1.8
1.5
Maruti
Accumulate
4,628
4,960
139,795
57,865
68,104
16.4
16.7
176.3
225.5
26.3
20.5
5.1
4.3
19.4
21.2
2.2
1.8
Minda Industries
Neutral
887
-
1,407
2,567
2,965
8.0
8.3
46.1
57.8
19.2
15.3
3.2
2.7
16.7
17.3
0.7
0.5
Motherson Sumi
Accumulate
283
313
37,413
39,343
45,100
8.8
9.1
10.1
12.5
28.0
22.6
8.9
7.0
35.3
34.4
1.0
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
222
-
592
594
741
12.7
13.7
8.4
15.8
26.4
14.0
2.7
2.4
10.4
16.9
1.4
1.2
Tata Motors
Neutral
405
-
117,047
255,254
301,772
12.9
13.4
23.7
37.3
17.1
10.9
2.1
1.7
7.4
12.1
0.6
0.6
TVS Motor
Accumulate
283
313
13,459
11,845
14,040
7.2
9.0
10.4
17.4
27.2
16.3
6.8
5.2
25.1
32.0
1.1
0.9
Amara Raja Batteries
Buy
860
1,040
14,682
4,892
5,871
17.4
17.6
28.8
37.1
29.9
23.2
7.0
5.6
23.4
24.1
3.0
2.4
Exide Industries
Accumulate
144
162
12,219
6,950
7,784
14.4
14.8
6.6
7.3
21.8
19.7
2.8
2.5
12.6
12.8
1.5
1.3
Apollo Tyres
Accumulate
159
171
8,071
12,146
12,689
16.8
16.0
21.2
19.0
7.5
8.3
1.2
1.1
16.5
13.0
0.7
0.8
Ceat
Accumulate
1,044
1,119
4,224
6,041
6,597
14.1
13.7
99.5
111.9
10.5
9.3
2.1
1.7
19.6
18.5
0.9
0.7
JK Tyres
Neutral
108
-
2,439
7,446
7,669
15.2
14.0
19.6
18.4
5.5
5.9
1.4
1.1
25.2
19.5
0.7
0.6
Swaraj Engines
Neutral
921
-
1,144
552
630
14.2
14.7
44.6
54.1
20.7
17.0
4.8
4.4
23.2
25.6
1.9
1.6
Subros
Neutral
99
-
594
1,268
1,488
11.6
11.9
3.7
6.6
26.7
15.0
1.8
1.6
6.8
11.4
0.8
0.6
Indag Rubber
Neutral
227
-
597
283
329
17.0
17.2
13.0
15.4
17.6
14.7
3.8
3.2
21.8
21.6
1.8
1.5
Capital Goods
ACE
Neutral
45
-
445
660
839
4.7
8.2
1.0
3.9
45.0
11.5
1.4
1.3
3.2
11.3
0.8
0.7
BEML
Neutral
1,079
-
4,493
3,277
4,006
6.0
8.9
29.2
64.3
37.0
16.8
2.1
1.9
5.7
11.7
1.5
1.1
BGR Energy
Neutral
122
-
880
3,615
3,181
9.5
9.4
16.7
12.4
7.3
9.8
0.7
0.7
10.0
7.0
0.7
0.8
BHEL
Neutral
169
-
41,315
33,722
35,272
10.8
11.7
10.5
14.2
16.1
11.9
1.2
1.1
7.0
9.0
1.3
1.2
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Stock Watch
December 04, 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
355
382
3,190
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
194
204
12,149
13,484
14,687
4.9
6.2
4.5
7.1
43.1
27.3
3.0
2.8
7.2
10.8
1.0
0.9
Inox Wind
Buy
361
505
8,009
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
151
-
3,891
8,791
9,716
6.1
6.8
5.4
8.2
28.0
18.5
2.8
2.6
10.0
14.0
0.7
0.6
Thermax
Neutral
851
-
10,141
6,413
7,525
7.4
8.5
30.5
39.3
27.9
21.7
4.3
3.7
15.0
17.0
1.6
1.3
Cement
ACC
Buy
1,350
1,630
25,338
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
198
233
30,728
11,564
12,556
19.4
20.7
8.9
10.1
22.3
19.6
2.8
2.6
12.8
13.8
2.3
2.1
HeidelbergCement
Neutral
74
-
1,687
1,772
1,926
13.3
15.4
1.0
3.0
74.5
24.8
1.9
1.7
2.6
7.9
1.5
1.3
India Cements
Buy
88
112
2,711
4,216
4,840
18.0
19.5
4.0
9.9
22.1
8.9
0.9
0.8
4.0
9.5
1.0
0.8
JK Cement
Accumulate
670
744
4,681
3,661
4,742
10.1
15.8
18.0
61.0
37.2
11.0
2.7
2.4
7.5
22.9
1.8
1.3
J K Lakshmi Cement
Buy
347
430
4,082
2,947
3,616
16.7
19.9
11.5
27.2
30.2
12.8
2.9
2.5
9.8
20.8
1.8
1.4
Mangalam Cements
Neutral
197
-
526
1,053
1,347
10.5
13.3
8.4
26.0
23.5
7.6
1.0
0.9
4.3
12.5
0.9
0.6
Orient Cement
Accumulate
168
183
3,450
1,854
2,524
21.2
22.2
7.7
11.1
21.9
15.2
3.1
2.7
13.3
15.7
2.6
1.8
Ramco Cements
Neutral
378
-
9,004
4,036
4,545
20.8
21.3
15.1
18.8
25.1
20.1
3.1
2.7
12.9
14.3
2.7
2.4
Shree Cement^
Neutral
11,275
-
39,278
7,150
8,742
26.7
28.6
228.0
345.5
49.4
32.6
7.3
6.1
15.7
20.3
5.2
4.2
UltraTech Cement
Accumulate
2,855
3,282
78,339
25,021
30,023
19.1
21.6
89.0
132.0
32.1
21.6
3.7
3.2
12.2
15.9
3.2
2.7
Construction
ITNL
Neutral
87
-
2,865
7,360
8,825
34.0
35.9
7.0
9.0
12.4
9.7
0.4
0.4
3.2
3.7
3.8
3.6
KNR Constructions
Accumulate
612
673
1,721
937
1,470
14.3
14.0
33.5
38.6
18.3
15.9
2.8
2.4
15.4
15.4
1.9
1.2
Larsen & Toubro
Buy
1,348
1,646
125,467
65,065
77,009
11.5
11.7
61.5
65.6
21.9
20.6
2.2
2.0
13.4
14.0
2.1
1.8
Gujarat Pipavav Port
Neutral
158
-
7,614
629
684
51.0
52.2
6.4
5.9
24.6
26.7
3.2
3.0
15.9
12.7
11.8
10.6
MBL Infrastructures
Buy
215
285
892
2,313
2,797
12.2
14.6
19.0
20.0
11.3
10.8
1.2
1.1
11.3
10.6
1.1
1.0
Nagarjuna Const.
Neutral
78
-
4,325
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
539
-
2,765
1,873
2,288
13.2
13.5
24.0
32.0
22.5
16.8
2.2
1.9
12.1
12.3
1.6
1.3
Simplex Infra
Neutral
326
-
1,614
5,955
6,829
10.3
10.5
16.0
31.0
20.4
10.5
1.1
1.0
5.3
9.9
0.8
0.7
Power Mech Projects
Neutral
608
-
894
1,539
1,801
12.8
12.7
59.0
72.1
10.3
8.4
1.6
1.3
18.6
16.8
0.6
0.5
Sadbhav Engineering
Neutral
350
-
6,001
3,481
4,219
10.7
10.8
8.0
12.0
43.7
29.2
4.1
3.6
10.3
13.5
2.0
1.7
NBCC
Accumulate
985
1,089
11,824
7,382
9,506
7.7
8.6
39.8
54.4
24.8
18.1
6.0
4.7
26.7
29.1
1.4
1.0
SIPL
Neutral
100
-
3,526
675
1,042
62.4
64.7
-
-
3.8
4.3
-
-
16.9
11.4
Financials
Allahabad Bank
Neutral
75
-
4,495
8,332
9,259
2.8
2.8
21.0
25.6
3.6
2.9
0.4
0.3
9.8
10.9
-
-
www.angelbroking.com
Stock Watch
December 04, 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
462
630
109,952
26,473
31,527
3.5
3.6
35.7
43.5
12.9
10.6
2.5
2.2
17.9
18.9
-
-
Bank of Baroda
Neutral
172
-
39,574
19,105
21,474
2.0
2.0
19.1
24.8
9.0
6.9
0.9
0.8
10.2
12.1
-
-
Bank of India
Neutral
125
-
9,927
15,972
17,271
1.9
2.0
15.3
33.4
8.2
3.8
0.4
0.3
3.6
7.6
-
-
Canara Bank
Neutral
260
-
14,126
15,251
16,725
2.0
2.0
59.3
68.6
4.4
3.8
0.5
0.4
10.1
10.7
-
-
Dena Bank
Neutral
43
-
2,438
3,440
3,840
2.1
2.3
7.3
10.0
6.0
4.3
0.5
0.4
6.1
7.9
-
-
Federal Bank
Neutral
57
-
9,784
3,477
3,999
3.0
3.0
5.0
6.2
11.4
9.1
1.1
1.0
10.6
11.9
-
-
HDFC
Neutral
1,201
-
189,479
10,358
11,852
3.3
3.3
41.1
47.0
29.3
25.5
5.6
5.1
24.7
24.9
-
-
HDFC Bank
Buy
1,076
1,262
270,869
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
266
357
154,484
35,168
40,517
3.4
3.4
21.4
25.2
12.4
10.6
2.1
1.8
14.7
15.2
-
-
IDBI Bank
Neutral
93
-
14,941
9,625
10,455
1.8
1.8
8.5
14.2
10.9
6.6
0.7
0.6
5.9
9.3
-
-
Indian Bank
Neutral
127
-
6,105
6,160
6,858
2.5
2.5
24.5
29.8
5.2
4.3
0.4
0.4
7.7
8.6
-
-
LIC Housing Finance
Buy
468
571
23,621
3,101
3,745
2.5
2.5
33.0
40.2
14.2
11.7
2.7
2.3
19.7
20.5
-
-
Oriental Bank
Neutral
149
-
4,471
7,643
8,373
2.4
2.4
37.2
45.4
4.0
3.3
0.4
0.3
8.2
9.4
-
-
Punjab Natl.Bank
Neutral
137
-
26,872
23,638
26,557
2.8
2.8
17.9
27.2
7.7
5.0
0.8
0.6
8.5
12.0
-
-
South Ind.Bank
Neutral
20
-
2,748
1,965
2,185
2.5
2.5
2.5
3.3
8.2
6.2
0.8
0.7
9.5
11.7
-
-
St Bk of India
Buy
241
283
187,199
82,520
93,299
2.7
2.8
20.0
24.5
12.0
9.9
1.3
1.2
11.5
12.8
-
-
Union Bank
Neutral
169
-
11,597
12,646
14,129
2.3
2.4
31.0
39.1
5.4
4.3
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
751
914
31,437
7,228
9,043
3.2
3.3
57.7
69.4
13.0
10.8
2.3
2.0
19.1
19.6
-
-
FMCG
Asian Paints
Neutral
843
-
80,827
16,553
19,160
16.0
16.2
17.7
21.5
47.7
39.2
12.7
11.4
29.4
31.2
4.7
4.1
Britannia
Neutral
2,939
-
35,258
8,065
9,395
9.6
10.2
47.2
65.5
62.3
44.9
20.7
19.6
38.3
41.2
4.2
3.6
Colgate
Neutral
973
-
26,452
4,836
5,490
19.5
19.7
48.5
53.2
20.1
18.3
14.7
12.8
99.8
97.5
5.4
4.7
Dabur India
Neutral
278
-
48,831
9,370
10,265
17.1
17.2
7.3
8.1
37.9
34.3
11.4
9.3
33.7
30.6
5.1
4.7
GlaxoSmith Con*
Neutral
6,000
-
25,231
4,919
5,742
17.2
17.4
168.3
191.2
35.7
31.4
10.1
8.6
28.8
28.9
4.7
4.0
Godrej Consumer
Neutral
1,226
-
41,739
10,168
12,886
16.1
16.1
32.1
38.4
38.2
31.9
7.8
7.2
19.7
21.0
4.2
3.3
HUL
Neutral
817
-
176,831
34,940
38,957
17.5
17.7
20.8
24.7
39.3
33.1
43.7
34.9
110.5
114.2
4.9
4.3
ITC
Buy
343
409
275,389
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
426
-
27,468
6,551
7,766
15.7
16.0
10.4
12.5
41.0
34.1
11.9
9.9
33.2
32.4
4.1
3.5
Nestle*
Accumulate
5,836
6,646
56,272
11,291
12,847
22.2
22.3
158.9
184.6
36.7
31.6
19.2
17.3
55.0
57.3
4.8
4.2
www.angelbroking.com
Stock Watch
December 04, 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
Accumulate
135
144
8,488
8,635
9,072
9.8
9.9
6.5
7.6
20.7
17.7
2.1
2.0
6.8
7.4
0.9
0.9
IT
HCL Tech^
Buy
850
1,132
119,570
42,038
47,503
23.2
23.5
55.8
62.9
15.2
13.5
3.5
2.7
23.0
19.8
2.5
2.0
Infosys
Buy
1,056
1,306
242,557
60,250
66,999
28.0
28.0
58.3
63.7
18.1
16.6
3.8
3.3
20.9
19.7
3.3
2.8
TCS
Buy
2,351
3,165
463,218
111,274
126,852
28.4
28.7
125.4
143.9
18.8
16.3
7.4
6.8
39.9
42.2
3.8
3.3
Tech Mahindra
Buy
542
646
52,099
25,566
28,890
16.0
17.0
26.3
31.9
20.6
17.0
3.7
3.2
17.9
18.6
1.8
1.5
Wipro
Buy
572
719
141,315
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
333
356
6,111
2,241
2,495
27.8
27.9
21.8
25.6
15.3
13.0
4.0
3.5
26.7
28.5
2.7
2.4
HT Media
Neutral
80
-
1,850
2,495
2,603
11.2
11.2
7.3
8.6
10.9
9.2
0.9
0.8
7.4
8.1
0.2
0.2
Jagran Prakashan
Accumulate
151
169
4,928
2,170
2,355
27.0
27.6
12.8
10.3
11.7
14.7
3.3
3.1
21.8
19.4
2.0
1.8
Sun TV Network
Neutral
395
-
15,566
2,779
3,196
70.2
70.5
22.8
27.3
17.3
14.5
4.3
3.9
26.7
28.3
5.4
4.6
Hindustan Media
Neutral
288
-
2,116
920
1,031
20.0
20.0
19.2
20.9
15.0
13.8
2.5
2.1
16.4
15.3
1.8
1.6
Ventures
Metals & Mining
Coal India
Accumulate
335
380
211,282
76,167
84,130
19.9
22.3
22.4
25.8
14.9
13.0
5.4
5.2
35.5
41.0
2.1
1.9
Hind. Zinc
Buy
143
175
60,591
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
79
-
16,365
104,356
111,186
8.7
9.5
6.7
11.1
11.8
7.2
0.4
0.4
3.5
5.9
0.7
0.6
JSW Steel
Neutral
977
-
23,610
42,308
45,147
16.4
20.7
(10.3)
49.5
19.7
1.1
1.1
(1.0)
5.6
1.6
1.5
NMDC
Neutral
93
-
36,733
8,237
10,893
46.6
44.5
10.0
11.7
9.3
7.9
1.0
0.9
12.5
13.0
4.3
3.2
SAIL
Neutral
47
-
19,288
45,915
53,954
7.2
10.5
1.5
4.4
31.0
10.7
0.5
0.4
2.3
4.1
1.1
0.9
Vedanta
Neutral
92
-
27,320
71,445
81,910
26.2
26.3
12.9
19.2
7.2
4.8
0.5
0.4
7.2
8.9
0.8
0.6
Tata Steel
Neutral
240
-
23,324
126,760
137,307
8.9
11.3
6.4
23.1
37.7
10.4
0.8
0.7
2.0
7.1
0.8
0.7
Oil & Gas
Cairn India
Neutral
136
-
25,582
11,323
12,490
49.4
51.0
20.7
20.7
6.6
6.6
0.4
0.4
6.4
6.1
1.3
0.7
GAIL
Neutral
358
-
45,373
64,856
70,933
9.1
9.6
24.0
28.9
14.9
12.4
1.3
1.2
8.8
9.6
0.9
0.8
ONGC
Neutral
230
-
196,391
154,564
167,321
36.8
37.4
28.6
32.5
8.0
7.1
1.0
0.9
12.7
13.5
1.5
1.4
Petronet LNG
Neutral
242
-
18,116
29,691
31,188
5.8
6.2
12.8
13.4
18.9
18.0
2.8
2.5
15.8
14.8
0.7
0.6
Indian Oil Corp
Accumulate
431
455
104,596
359,607
402,760
5.9
6.1
42.5
48.7
10.2
8.8
1.4
1.2
14.1
14.4
0.4
0.3
Reliance Industries
Accumulate
977
1,050
316,330
304,775
344,392
12.6
13.4
91.3
102.6
10.7
9.5
1.2
1.1
11.8
12.0
1.0
0.8
Pharmaceuticals
Alembic Pharma
Neutral
684
-
12,893
2,658
3,112
24.1
20.2
24.6
23.9
27.8
28.6
10.0
7.6
42.5
30.2
4.9
4.1
Aurobindo Pharma
Accumulate
821
872
47,964
14,923
17,162
23.0
23.0
38.2
43.6
21.5
18.8
6.6
5.0
36.0
30.2
3.6
3.0
Aventis*
Neutral
4,324
-
9,958
2,082
2,371
17.4
20.8
118.2
151.5
36.6
28.5
5.4
4.3
19.9
25.5
4.5
3.7
Cadila Healthcare
Neutral
404
-
41,313
10,224
11,840
21.0
22.0
14.6
17.6
27.6
22.9
7.6
5.9
30.8
29.0
4.1
3.5
www.angelbroking.com
Stock Watch
December 04, 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
651
-
52,246
14,211
16,611
20.6
19.0
27.0
28.9
24.1
22.5
4.1
3.5
18.4
16.8
3.7
3.1
Dr Reddy's
Buy
3,224
3,933
54,966
16,838
19,575
25.0
23.1
167.5
178.8
19.2
18.0
4.0
3.4
23.1
20.4
3.2
2.7
Dishman Pharma
Neutral
323
-
2,606
1,733
1,906
21.5
21.5
17.0
19.9
19.0
16.2
1.9
1.7
10.5
11.2
2.0
1.7
GSK Pharma*
Neutral
3,258
-
27,599
2,870
3,158
20.0
22.1
59.5
68.3
54.8
47.7
16.2
16.6
28.5
34.3
9.1
8.3
Indoco Remedies
Neutral
320
-
2,951
1,033
1,199
15.9
18.2
9.4
13.6
34.1
23.5
5.1
4.3
15.7
19.7
2.9
2.5
Ipca labs
Buy
771
900
9,731
3,363
3,909
12.9
18.6
13.4
28.0
57.6
27.5
7.5
6.0
7.4
14.0
3.2
2.7
Lupin
Neutral
1,821
-
81,994
13,092
16,561
25.0
27.0
50.4
68.3
36.1
26.7
7.5
5.9
22.8
24.7
6.0
4.6
Sun Pharma
Buy
727
950
174,924
28,163
32,610
25.8
30.7
17.4
26.9
41.8
27.0
4.0
3.4
13.0
16.6
5.7
4.7
Power
Tata Power
Neutral
66
-
17,756
35,923
37,402
22.6
22.8
4.1
5.2
16.2
12.8
1.2
1.2
7.5
9.3
1.4
1.3
NTPC
Buy
134
157
110,366
87,064
98,846
23.5
23.5
11.7
13.2
11.4
10.1
1.3
1.2
11.4
12.1
2.3
2.0
Power Grid
Buy
134
170
69,999
20,702
23,361
86.7
86.4
12.1
13.2
11.1
10.1
1.6
1.5
15.6
15.1
8.3
7.7
Telecom
Bharti Airtel
Neutral
320
-
127,797
101,748
109,191
32.1
31.7
12.0
12.5
26.6
25.6
1.8
1.7
6.9
6.7
1.9
1.7
Idea Cellular
Neutral
140
-
50,485
34,282
36,941
32.0
31.5
5.9
6.2
23.8
22.6
2.2
2.0
9.9
9.3
2.1
1.9
zOthers
Abbott India
Neutral
5,188
-
11,024
2,715
3,153
14.5
14.1
134.3
152.2
38.6
34.1
9.6
7.9
27.4
25.6
3.8
3.2
Bajaj Electricals
Buy
217
341
2,193
4,719
5,287
5.2
5.8
8.6
12.7
25.4
17.2
2.9
2.6
11.4
14.8
0.5
0.4
Finolex Cables
Neutral
251
-
3,835
2,520
2,883
12.2
12.0
12.7
14.2
19.8
17.7
2.7
2.4
13.6
13.5
1.3
1.1
Goodyear India*
Accumulate
568
622
1,310
1,888
1,680
12.1
11.9
62.2
56.6
9.1
10.0
2.1
1.8
25.9
19.7
0.5
0.5
Hitachi
Neutral
1,333
-
3,625
1,779
2,081
7.8
8.8
21.8
33.4
61.2
39.9
9.9
8.0
17.4
22.1
2.1
1.8
Jyothy Laboratories
Neutral
313
-
5,669
1,620
1,847
11.5
11.5
7.3
8.5
42.9
37.0
5.6
5.1
13.3
14.4
3.4
2.9
MRF
Buy
39,117
45,575
16,590
20,316
14,488
21.4
21.1
5,488.0
3,798.0
7.1
10.3
2.4
2.0
41.1
21.2
0.8
1.0
Page Industries
Neutral
13,143
-
14,660
1,929
2,450
19.8
20.1
229.9
299.0
57.2
44.0
25.2
17.5
52.1
47.1
7.6
6.0
Relaxo Footwears
Neutral
490
-
5,885
1,767
2,152
12.3
12.5
19.3
25.1
25.5
19.6
6.3
4.8
27.7
27.8
3.4
2.8
Siyaram Silk Mills
Accumulate
1,053
1,145
987
1,636
1,815
11.5
11.5
89.9
104.1
11.7
10.1
1.9
1.7
17.9
17.8
0.8
0.7
Styrolution ABS India*
Neutral
726
-
1,277
1,271
1,440
8.6
9.2
32.0
41.1
22.7
17.7
2.3
2.1
10.7
12.4
1.0
0.8
TVS Srichakra
Accumulate
2,830
3,240
2,167
2,101
2,338
15.7
15.0
248.6
270.0
11.4
10.5
5.0
3.6
43.6
34.0
1.1
0.9
HSIL
Neutral
312
-
2,256
2,123
2,384
16.1
16.5
15.0
18.9
20.8
16.5
1.6
1.5
8.0
9.4
1.4
1.2
Kirloskar Engines India
Neutral
267
-
3,860
2,471
2,826
8.8
10.4
9.1
13.3
29.2
20.0
2.8
2.6
9.7
13.4
1.2
1.0
Ltd
M M Forgings
Buy
521
614
629
511
615
21.7
21.6
43.1
55.8
12.1
9.3
2.2
1.8
19.9
21.2
1.4
1.1
Banco Products (India)
Neutral
137
-
979
1,208
1,353
11.0
12.3
10.8
14.5
12.7
9.5
1.5
1.3
11.9
14.5
0.8
0.7
www.angelbroking.com
Stock Watch
December 04, 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
150
-
92
1,040
1,137
3.2
3.1
25.7
28.0
5.8
5.4
0.9
0.8
15.0
14.3
0.1
0.1
Nilkamal
Neutral
1,062
-
1,585
1,910
2,083
10.5
10.3
63.3
69.2
16.8
15.4
2.7
2.4
17.6
16.5
0.9
0.8
Visaka Industries
Accumulate
129
144
205
1,086
1,197
9.9
10.3
21.5
28.8
6.0
4.5
0.6
0.5
9.6
11.6
0.4
0.3
Transport Corporation of
Neutral
319
-
2,426
2,830
3,350
8.8
9.0
14.4
18.3
22.2
17.4
3.4
3.0
15.4
17.1
1.0
0.8
India
Elecon Engineering
Neutral
88
-
964
1,369
1,533
13.7
14.9
3.3
6.1
26.6
14.6
1.7
1.6
6.6
11.4
1.0
0.9
Surya Roshni
Buy
139
183
611
2,992
3,223
8.1
8.4
14.7
18.3
9.5
7.6
0.9
0.8
9.7
11.0
0.5
0.4
MT Educare
Buy
140
169
559
286
366
18.3
17.7
7.7
9.4
18.2
15.0
3.8
3.4
20.2
21.1
1.9
1.4
Radico Khaitan
Buy
111
156
1,478
1,565
1,687
12.2
13.0
5.7
7.1
19.5
15.7
1.6
1.5
8.3
9.6
1.4
1.3
Garware Wall Ropes
Accumulate
396
423
866
861
967
10.9
10.9
24.0
28.2
16.5
14.0
2.4
2.1
14.6
14.9
1.0
0.9
Wonderla Holidays
Neutral
365
-
2,062
206
308
44.0
43.6
9.0
12.9
40.6
28.3
5.5
5.0
13.7
17.8
9.9
6.6
Linc Pen & Plastics
Neutral
180
-
266
340
371
8.3
8.9
10.8
13.2
16.7
13.6
2.7
2.3
16.0
17.1
0.8
0.7
The Byke Hospitality
Accumulate
169
181
678
222
287
20.5
20.5
5.6
7.6
30.0
22.4
5.7
4.7
18.9
20.8
3.1
2.4
Interglobe Aviation
Neutral
1,112
-
40,072
17,022
21,122
20.7
14.5
63.9
53.7
17.4
20.7
26.1
21.4
149.9
103.2
2.4
1.9
Coffee Day Enterprises
Neutral
262
-
5,395
2,692
2,964
17.0
18.6
-
4.7
-
55.3
3.2
3.0
0.2
5.5
2.4
2.2
Ltd
Navneet Education
Accumulate
86
97
432
998
1,062
24.1
24.0
5.8
6.1
15.0
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 December 03, 2015
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Market Outlook
December 04, 2015
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
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