Market Outlook
October 07, 2015
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are expected to open in positive tracking the SGX Nifty and the Asian
BSE Sensex
0.6
147
26,933
cues.
Nifty
0.4
34
8,153
U.S. stocks moved mostly lower during trading on Tuesday. The weakness on Wall
Mid Cap
0.3
34
11,047
Street was largely due to profit taking, as traders cashed in on the strong upward
Small Cap
0.7
77
11,299
move seen over the two previous sessions. Uncertainty about the upcoming earnings
Bankex
(0.2)
(46)
20,111
season also weighed on the markets.
Global Indices
Chg (%)
(Pts)
(Close)
The European markets after a volatile start turned positive in the afternoon session.
Some disappointing economic data from Europe, particularly the unexpected
Dow Jones
0.1
14
16,790
decrease in German factory orders weighed on investor sentiment in early trade.
Nasdaq
(0.7)
(33)
4,748
Rising commodity prices, especially the continued increase in oil prices provided a
FTSE
0.4
27
6,326
boost to the markets in the afternoon.
Nikkei
1.0
181
18,186
The Indian markets extended recent gains on Tuesday, with sentiment supported by
Hang Seng
(0.1)
(23)
21,832
positive global cues and a firm rupee, which held steady after a five-day rally on
Shanghai Com
0.5
15
3,053
expectations the U.S. economy is not ready for an interest-rate rise anytime soon.
After a volatile start buying momentum was seen in afternoon session as Prime
Advances / Declines
Bse
Nse
Minister Narendra Modi expressed the hope that the Goods and Services Tax (GST)
Advances
1,585
1,019
will be rolled out next year.
Declines
1,164
482
News Analysis
Unchanged
118
68
Tata Steel expects SEZ notification for Gopalpur next month
Suzlon Bags 100.8 MW Repeat Order From Orange Renewable
Volumes (` Cr)
Detailed analysis on Pg2
BSE
3,357
Investor’s Ready Reckoner
NSE
18,395
Key Domestic & Global Indicators
Stock Watch: Latest investment recommendations on 150+ stocks
Net Inflows (` Cr)
Net
Mtd
Ytd
Refer Pg4 onwards
FII
801
897
118,962
MFs
157
634
79,639
Top Picks
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
Top Gainers
Price (`)
Chg (%)
Axis Bank
Financials
Buy
507
701
38.4
Renuka
9
12.9
ICICI Bank
Financials
Buy
283
370
30.9
Canbk
46
10.7
Power Grid
Power
Buy
132
170
28.9
Balramchin
59
8.7
TCS
IT
Buy
2,696
3,168
17.5
Aurobindo Pharma Pharmaceuticals Accumulate
756
872
15.3
Kscl
465
8.3
More Top Picks on Pg3
Rajeshexpo
624
7.6
Key Upcoming Events
Previous
Consensus
Top Losers
Price (`)
Chg (%)
Date
Region
Event Description
Reading
Expectations
Recltd
281
(4.2)
Oct 07
UK
Industrial Production YoY
0.8
---
Tv18Brdcst
34
(3.8)
Oct 08
UK
BOE Announces rates
0.50
0.50
Emamiltd
1,166
(3.6)
Oct 09
India
Imports YoY%
(9.95)
--
Pel
888
(3.0)
India
Exports YoY%
(20.66)
--
Bhel
198
(2.8)
Oct 12
India
Industrial Production YoY
(4.20)
--
As on October 06, 2015
Oct 13
UK
CPI (YoY)
--
--
www.angelbroking.com
Market Outlook
October 07, 2015
Tata Steel expects SEZ notification for Gopalpur next month
Tata Steel expects the industrial park at Gopalpur to be notified as a Special
Economic zone (SEZ) next month. The steel maker is the anchor tenant for the
multi-product SEZ coming up at Gopalpur in south Odisha. By early December,
Tata Steel would launch Gopalpur as an investment destination. They have already
talked to investors in China who are keen to invest on the Gopalpur SEZ. But the
investors are not in a position to commit investments unless there is the SEZ
notification. This SEZ has the potential to attract investments of the order of `
15,000 crore. Investments are expected to flow in areas like defence,
electronics, LEDs (light emitting diodes) and solar cells. As an anchor tenant, Tata
Steel is developing 55,000 tonne per annum ferro chrome plant at an estimated
cost of ` 541 crore. The plant is scheduled to be commissioned by December this
year. Meanwhile, Tata Steel's three million tonne greenfield steel capacity at
Kalinganagar (in Jajpur district) is expected to be commissioned in three months.
The coke oven plant of our Kalinganagar unit has started production. It has also
started heating of our blast furnace. A steel plant has many components and the
commissioning cycle takes three to six months to complete. The company hopes
that in the next three to four months, steel plant would be ready for inauguration.
Overall, Tata Steel is setting up six million tonne steel plant at Kalinganagar of
which three million tonne capacity would be created in the first phase. It has
already invested around ` 22,000 crore on its Kalinganagar steel mill.
Suzlon Bags 100.8 MW Repeat Order From Orange Renewable
Suzlon Group has won a repeat turnkey order for 100.8 MW from Orange
Renewable, an independent power producer (IPP), to be installed in a wind park in
Beluguppa, Andhra Pradesh. The wind park comprises 48 wind turbine generators
of Suzlon's S111 90m, 2.1 MW wind turbines. The project will be commissioned
starting FY2017. It will further offer operation and maintenance services for an
initial period of 12 years through an integrated package. Orange Renewable is a
developer and operator of renewable energy projects and a 100 per cent
subsidiary of AT Holdings Pte Ltd, Singapore.
Economic and Political News
Consumer durable cos eye 30% sales growth on festive demand
Indian employers see rising benefit costs as a challenge: Survey
About 7,500 km of BOT highway projects at risk: CRISIL
Corporate News
Siemens signs MoU with IL&FS, GIFTCL to develop smart mobility solutions for
the tec-city
Arvind to double turnover from Tresca brand in 2 yrs
HDFC locks in ` 10,400 cr; NCDs, warrants list at big premium
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Market Outlook
October 07, 2015
Top Picks ★★★★★
Large Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
Robust US sales along with the acquisations, will aid the growth
Aurobindo
44,148
756
872
15.3
and stable margins.
Healthy pace of branch expansion, backed by distribution
Axis Bank
1,20,474
507
701
38.4
network.
Robust franchise and capital adequacy position will help the
ICICI Bank
1,64,212
283
370
30.9
bank to outperform the industry average.
Back on the growth trend; expect a long term growth of 14% to
Infosys
2,65,263
1,155
1,306
13.1
be a US$20bn in FY2020.
Government thrust on Renewable sector and strong order book
Inox Wind
8,155
368
505
37.4
would drive future growth.
LICHF continues to grow its retail loan book at a healthy pace
LIC HFL
24,206
480
570
18.8
with improvement in asset quality.
Direct beneficiary of the huge investments lined up in the power
Power Grid
68,979
132
170
28.9
transmission sector.
Growth to pick up from 2HFY2017, attractive given the risk-
TCS
5,28,014
2,696
3,168
17.5
reward.
Tech Mahindra
54,268
564
646
14.5
Acquisitions, to drive growth, normalised valuations attractive.
An improving liability franchise, capital adequacy well above
Yes Bank
31,159
744
953
28.1
Basel III requirements and lowest NPA ratio in the industry.
Source: Company, Angel Research
Mid Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
Bajaj Electricals
2,501
248
341
37.6
Visible turnaround in E&P business to drive the earnings.
Garware Wall Ropes
780
356
390
9.5
Higher exports & easing material prices to drive profitability.
Comfortable balance sheet to support strong growth; this
MBL Infrastructures
1,009
243
360
48.0
coupled with attractive valuation to lead to rerating.
New product introductions and increased sourcing by clients to
Minda Industries
797
502
652
29.9
enable outpace industry growth.
Strong brand & quality teaching with innovative technologies &
MT Educare
538
135
169
25.1
higher government educational spending to boost growth.
Earnings boost on back of stable material prices and favorable
Radico Khaitan
1,143
86
112
30.3
pricing environment. Valuation discount to peers provides
additional comfort.
Structural shift in the Lighting industry towards LED lighting will
Surya Roshni
570
130
183
40.8
drive growth.
Tree House
1,262
298
449
50.5
Robust expansion plan for pre-schools to drive growth.
Source: Company, Angel Research
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Market Outlook
October 07, 2015
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
9.0
8.4
6.0
5.2
4.8
5.0
4.4
4.2
8.0
7.5
7.5
3.6
4.0
3.0
7.0
7.0
2.6
2.8
6.7
6.7
2.5
2.5
7.0
6.4
6.6
3.0
6.3
2.0
6.0
1.0
5.0
4.7
-
5.0
(1.0)
4.0
(2.0)
(3.0)
3.0
(2.7)
(4.0)
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
5.6
5.4
5.2
5.4
5.3
4.9
5.0
54.0
5.0
4.6
4.3
52.0
3.7
3.7
4.0
3.3
50.0
3.0
48.0
2.0
46.0
1.0
44.0
-
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
30.0
9.00
20.0
8.00
10.0
7.00
0.0
6.00
5.00
(10.0)
4.00
(20.0)
3.00
(30.0)
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
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Market Outlook
October 07, 2015
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
7.0
6.0
5.3
4.9
4.7
4.0
2.8
2.7
2.4
1.6
2.0
1.2
1.1
0.8
-
(2.0)
(2.6)
(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
October 07, 2015
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
47,033
(4.4)
(15.1)
(19.5)
Russia
Micex
1,613
(5.2)
0.1
16.7
India
Nifty
7,951
(0.0)
(5.0)
(2.4)
China
Shanghai Composite
3,053
(1.0)
(28.6)
31.1
South Africa
Top 40
45,668
1.1
(2.7)
1.5
Mexico
Mexbol
42,735
(1.5)
(5.1)
(5.2)
Indonesia
LQ45
701
(8.3)
(15.9)
(19.6)
Malaysia
KLCI
1,629
1.0
(4.6)
(11.5)
Thailand
SET 50
868
(4.1)
(12.8)
(17.8)
USA
Dow Jones
16,472
(2.2)
(7.6)
(3.1)
UK
FTSE
6,130
0.8
(6.9)
(6.6)
Japan
Nikkei
17,725
(7.4)
(12.4)
9.4
Germany
DAX
9,553
(5.8)
(13.0)
2.0
France
CAC
4,459
(4.2)
(7.9)
3.9
Source: Bloomberg, Angel Research
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Stock Watch
October 07, 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
218
-
4,239
2,075
2,394
14.4
14.4
9.5
11.0
23.0
19.8
4.6
3.9
21.1
21.3
2.1
1.8
United Phosphorus
Accumulate
465
510
19,930
13,698
15,752
17.6
17.6
32.1
38.5
14.5
12.1
2.8
2.4
21.4
21.3
1.6
1.3
Auto & Auto Ancillary
Ashok Leyland
Accumulate
94
102
26,851
18,763
22,357
11.1
11.2
3.6
4.8
26.2
19.7
4.8
4.5
18.7
22.6
1.4
1.1
Bajaj Auto
Neutral
2,378
-
68,800
23,544
27,245
19.8
19.8
127.0
143.4
18.7
16.6
5.7
4.9
30.3
29.4
2.5
2.1
Eicher Motors
Buy
18,630
22,859
50,567
11,681
15,550
15.3
16.9
358.5
564.3
52.0
33.0
15.6
11.6
29.8
34.9
4.2
3.1
Hero Motocorp
Accumulate
2,533
2,672
50,572
28,500
32,764
14.1
14.3
146.9
167.0
17.2
15.2
6.5
5.5
37.8
36.5
1.6
1.4
L G Balakrishnan & Bros Neutral
440
-
691
1,254
1,394
11.6
11.8
35.9
41.7
12.3
10.6
1.7
1.5
13.5
13.8
0.7
0.6
Mahindra and Mahindra Accumulate
1,265
1,357
78,540
37,986
42,660
12.8
13.2
51.6
61.9
24.5
20.4
3.6
3.2
14.6
15.6
1.7
1.5
Maruti
Accumulate
4,357
4,960
131,625
58,102
68,587
16.7
16.9
182.0
225.5
23.9
19.3
4.8
4.1
19.9
21.0
2.0
1.7
Minda Industries
Buy
502
652
797
2,567
2,965
7.3
8.0
38.8
54.3
12.9
9.3
1.9
1.6
14.4
16.8
0.4
0.3
Rane Brake Lining
Buy
295
366
233
454
511
11.1
11.4
23.8
28.1
12.4
10.5
1.8
1.6
14.2
15.3
0.6
0.6
Setco Automotive
Neutral
233
-
622
594
741
12.7
13.7
8.4
15.8
27.7
14.7
2.9
2.5
10.4
16.9
1.5
1.2
Tata Motors
Accumulate
334
367
96,288
264,038
297,882
13.8
13.9
34.5
38.9
9.7
8.6
1.6
1.4
17.6
16.8
0.5
0.5
TVS Motor
Neutral
230
-
10,937
11,702
13,713
6.8
7.7
10.1
14.5
22.8
15.9
5.6
4.5
24.5
28.3
0.9
0.8
Amara Raja Batteries
Neutral
1,047
-
17,880
5,101
6,224
17.8
17.6
31.1
39.2
33.7
26.7
8.4
6.6
24.8
24.8
3.5
2.8
Exide Industries
Neutral
153
-
13,005
7,363
8,247
13.7
14.5
6.6
7.7
23.2
19.9
2.9
2.7
12.6
13.3
1.5
1.3
Apollo Tyres
Neutral
196
-
9,959
12,576
12,978
16.8
16.1
22.3
19.9
8.8
9.8
1.5
1.3
17.2
13.4
0.9
0.9
Ceat
Neutral
1,299
-
5,254
6,041
6,597
14.3
14.2
101.5
116.6
12.8
11.1
2.6
2.1
20.0
19.1
1.0
0.9
JK Tyres
Neutral
106
-
2,397
7,446
7,669
15.2
14.0
19.6
18.4
5.4
5.7
1.4
1.1
25.2
19.5
0.7
0.6
Swaraj Engines
Neutral
875
-
1,087
593
677
14.5
14.8
51.2
60.8
17.1
14.4
4.0
3.6
23.3
24.8
1.7
1.4
Subros
Neutral
77
-
465
1,268
1,488
11.6
11.9
3.7
6.6
20.9
11.7
1.4
1.3
6.8
11.4
0.7
0.6
Indag Rubber
Neutral
180
-
473
283
329
17.0
17.2
13.0
15.4
13.9
11.7
3.0
2.5
21.8
21.6
1.4
1.1
Capital Goods
ACE
Neutral
41
-
406
660
839
4.7
8.2
1.0
3.9
41.1
10.5
1.3
1.1
3.2
11.3
0.8
0.6
BEML
Neutral
1,281
-
5,333
3,277
4,006
6.0
8.9
29.2
64.3
43.9
19.9
2.5
2.2
5.7
11.7
1.7
1.4
BGR Energy
Neutral
112
-
809
3,615
3,181
9.5
9.4
16.7
12.4
6.7
9.0
0.6
0.6
10.0
7.0
0.6
0.8
BHEL
Neutral
198
-
48,475
33,722
35,272
10.8
11.7
10.5
14.2
18.9
14.0
1.4
1.3
7.0
9.0
1.5
1.5
Blue Star
Accumulate
342
387
3,079
3,649
4,209
5.0
5.9
9.2
14.7
37.4
23.2
6.8
6.4
9.1
17.5
0.9
0.8
Crompton Greaves
Buy
175
204
10,971
13,484
14,687
4.9
6.2
4.5
7.1
38.9
24.7
2.8
2.6
7.2
10.8
0.9
0.9
Inox Wind
Buy
368
505
8,155
4,980
5,943
17.0
17.5
26.6
31.6
13.8
11.6
4.1
3.0
35.0
30.0
1.8
1.4
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Stock Watch
October 07, 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
KEC International
Neutral
143
-
3,682
8,791
9,716
6.1
6.8
5.4
8.2
26.5
17.5
2.7
2.4
10.0
14.0
0.6
0.6
Thermax
Neutral
859
-
10,236
6,413
7,525
7.4
8.5
30.5
39.3
28.2
21.9
4.3
3.8
15.0
17.0
1.6
1.3
Cement
ACC
Accumulate
1,350
1,548
25,349
11,856
14,092
14.5
17.8
47.6
76.1
28.4
17.7
2.9
2.7
10.6
15.7
2.0
1.6
Ambuja Cements
Accumulate
210
233
32,520
10,569
12,022
20.7
22.2
8.7
10.7
24.1
19.6
3.1
2.9
13.0
15.2
2.7
2.3
India Cements
Buy
85
112
2,611
4,716
5,133
15.9
16.9
3.7
7.5
23.0
11.3
0.9
0.8
3.8
7.3
0.9
0.7
JK Cement
Accumulate
674
767
4,712
4,056
4,748
14.5
17.0
22.6
41.1
29.8
16.4
2.7
2.4
9.3
15.3
1.6
1.3
J K Lakshmi Cement
Accumulate
379
430
4,455
2,947
3,616
16.7
19.9
11.5
27.2
32.9
13.9
3.1
2.7
9.8
20.8
1.9
1.5
Mangalam Cements
Neutral
231
-
617
1,053
1,347
10.5
13.3
8.4
26.0
27.5
8.9
1.2
1.1
4.3
12.5
1.0
0.7
Orient Cement
Accumulate
170
183
3,473
1,854
2,524
21.2
22.2
7.7
11.1
22.0
15.3
3.2
2.7
13.3
15.7
2.6
1.8
Ramco Cements
Neutral
343
-
8,161
4,036
4,545
20.8
21.3
15.1
18.8
22.7
18.2
2.8
2.5
12.9
14.3
2.5
2.2
Shree Cement^
Neutral
12,546
-
43,708
7,150
8,742
26.7
28.6
228.0
345.5
55.0
36.3
8.1
6.8
15.7
20.3
5.9
4.7
UltraTech Cement
Buy
2,772
3,282
76,054
27,562
31,548
20.4
22.3
111.9
143.3
24.8
19.3
3.5
3.0
15.2
16.8
2.8
2.4
Construction
ITNL
Neutral
100
-
2,462
7,360
8,825
34.0
35.9
1.0
5.0
99.8
20.0
0.4
0.4
0.3
1.4
3.8
3.7
KNR Constructions
Neutral
598
-
1,682
915
1,479
14.3
13.9
20.3
37.2
29.5
16.1
2.7
2.3
9.6
15.6
2.0
1.2
Larsen & Toubro
Buy
1,554
2,013
144,588
68,920
82,446
10.9
11.5
57.0
73.0
27.3
21.3
2.5
2.3
13.6
15.5
2.3
1.9
Gujarat Pipavav Port
Neutral
200
-
9,688
721
784
53.1
53.6
8.2
9.1
24.4
22.0
3.9
3.2
20.0
18.3
13.0
11.6
MBL Infrastructures
Buy
243
360
1,009
2,313
2,797
12.2
14.6
19.0
20.0
12.8
12.2
1.3
1.2
11.3
10.6
1.1
1.0
Nagarjuna Const.
Neutral
75
-
4,189
7,892
8,842
8.3
9.1
2.4
5.3
31.4
14.2
1.3
1.2
4.2
8.6
0.8
0.7
PNC Infratech
Neutral
515
-
2,641
1,798
2,132
13.2
13.5
22.0
30.0
23.4
17.2
2.1
1.9
11.5
11.4
1.6
1.3
Simplex Infra
Neutral
303
-
1,500
6,241
7,008
10.4
10.7
20.0
36.0
15.2
8.4
1.2
1.1
6.8
11.1
0.7
0.6
Financials
Allahabad Bank
Neutral
77
-
4,422
8,438
9,521
2.8
2.8
21.9
27.0
3.5
2.9
0.4
0.3
10.2
11.5
-
-
Axis Bank
Buy
507
701
120,474
26,941
32,298
3.5
3.6
37.4
46.4
13.6
10.9
2.7
2.4
18.7
20.0
-
-
Bank of Baroda
Neutral
185
-
40,813
19,027
21,737
1.9
2.0
16.9
24.5
10.9
7.5
1.0
0.9
9.1
12.1
-
-
Bank of India
Neutral
142
-
9,422
16,438
18,706
1.9
2.0
19.2
40.9
7.4
3.5
0.4
0.4
4.5
9.1
-
-
Canara Bank
Neutral
296
-
16,092
15,491
17,269
2.0
2.0
61.6
70.9
4.8
4.2
0.5
0.5
10.5
11.1
-
-
Dena Bank
Neutral
40
-
2,256
3,498
3,977
2.1
2.3
7.8
10.7
5.2
3.8
0.4
0.3
6.5
8.4
-
-
Federal Bank
Neutral
65
-
11,217
3,527
4,135
3.0
3.1
5.2
6.7
12.6
9.8
1.3
1.2
10.8
12.7
-
-
HDFC
Neutral
1,262
-
199,119
10,883
12,799
3.5
3.4
43.0
50.6
29.4
24.9
5.8
5.3
25.9
26.7
-
-
HDFC Bank
Buy
1,085
1,255
273,312
38,059
46,851
4.4
4.5
50.0
62.7
21.7
17.3
3.8
3.2
18.8
20.2
-
-
www.angelbroking.com
Stock Watch
October 07, 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
ICICI Bank
Buy
283
370
164,212
35,810
41,871
3.4
3.5
22.0
26.2
12.9
10.8
2.3
1.9
15.0
15.6
-
-
IDBI Bank
Neutral
81
-
12,968
9,860
10,978
1.8
1.9
9.3
15.6
8.7
5.2
0.6
0.5
6.4
10.1
-
-
Indian Bank
Neutral
139
-
6,693
6,267
7,171
2.4
2.5
25.4
32.1
5.5
4.3
0.5
0.4
8.0
9.3
-
-
LIC Housing Finance
Buy
480
570
24,206
2,934
3,511
2.3
2.3
30.9
36.8
15.5
13.0
2.5
2.2
16.8
17.5
-
-
Oriental Bank
Neutral
142
-
4,249
7,730
8,595
2.4
2.5
38.8
47.4
3.7
3.0
0.3
0.3
8.6
9.8
-
-
Punjab Natl.Bank
Neutral
137
-
25,380
23,446
26,624
2.8
2.9
17.8
27.5
7.7
5.0
0.8
0.6
8.5
12.1
-
-
South Ind.Bank
Neutral
23
-
3,038
1,930
2,215
2.4
2.4
2.6
3.6
8.7
6.3
0.9
0.8
9.9
12.5
-
-
St Bk of India
Buy
240
307
181,778
83,847
96,307
2.8
2.8
20.1
25.1
12.0
9.6
1.3
1.2
11.5
13.1
-
-
Union Bank
Neutral
185
-
11,768
12,755
14,439
2.3
2.4
31.5
39.9
5.9
4.6
0.6
0.5
9.9
11.6
-
-
Vijaya Bank
Neutral
35
-
2,998
3,594
3,969
1.8
1.9
5.8
7.1
6.0
4.9
0.5
0.5
8.2
9.3
-
-
Yes Bank
Buy
744
953
31,159
7,204
9,078
3.2
3.2
57.8
69.5
12.9
10.7
2.3
2.0
19.6
22.6
-
-
FMCG
Asian Paints
Neutral
853
-
81,824
16,553
19,160
16.0
16.2
17.7
21.5
48.3
39.7
12.8
11.5
29.4
31.2
4.8
4.1
Britannia
Neutral
3,255
-
39,052
8,065
9,395
9.6
10.2
47.2
65.5
68.9
49.7
22.9
21.7
38.3
41.2
4.7
4.0
Colgate
Neutral
959
-
26,082
4,836
5,490
19.5
19.7
48.5
53.2
19.8
18.0
14.5
12.6
99.8
97.5
5.3
4.7
Dabur India
Neutral
277
-
48,594
9,370
10,265
17.1
17.2
7.3
8.1
37.7
34.2
11.4
9.3
33.7
30.6
5.1
4.6
GlaxoSmith Con*
Neutral
6,061
-
25,490
4,919
5,742
17.2
17.4
168.3
191.2
36.0
31.7
10.2
8.7
28.8
28.9
4.7
4.0
Godrej Consumer
Neutral
1,319
-
44,932
10,168
12,886
16.1
16.1
32.1
38.4
41.1
34.4
8.4
7.7
19.7
21.0
4.5
3.6
HUL
Neutral
828
-
179,179
34,940
38,957
17.5
17.7
20.8
24.7
39.8
33.5
44.3
35.4
110.5
114.2
4.9
4.4
ITC
Buy
343
409
275,229
41,068
45,068
37.8
37.4
13.9
15.9
24.6
21.6
8.3
7.3
34.1
33.8
6.3
5.7
Marico
Neutral
402
-
25,942
6,551
7,766
15.7
16.0
10.4
12.5
38.7
32.2
11.3
9.4
33.2
32.4
3.9
3.3
Nestle*
Neutral
6,484
-
62,515
11,291
12,847
22.2
22.3
158.9
184.6
40.8
35.1
21.3
19.2
55.0
57.3
5.4
4.7
Tata Global
Accumulate
131
144
8,233
8,635
9,072
9.8
9.9
6.5
7.6
20.1
17.2
2.0
1.9
6.8
7.4
0.9
0.8
IT
HCL Tech^
Buy
853
1,132
119,971
42,038
47,503
23.5
23.5
56.4
62.9
15.1
13.6
3.5
2.7
23.2
19.8
2.5
2.0
Infosys
Accumulate
1,155
1,306
265,263
60,250
66,999
28.0
28.0
58.3
63.7
19.8
18.1
4.2
3.6
20.9
19.7
3.7
3.2
TCS
Buy
2,696
3,168
528,014
108,420
123,559
28.8
28.7
127.2
143.9
21.2
18.7
8.5
7.8
39.9
41.8
4.5
3.9
Tech Mahindra
Accumulate
564
646
54,268
25,566
28,890
16.0
17.0
26.3
31.9
21.5
17.7
3.9
3.3
17.9
18.6
1.9
1.6
Wipro
Buy
600
719
148,132
52,414
58,704
23.7
23.8
38.4
42.3
15.6
14.2
3.1
2.7
19.5
18.0
2.4
2.0
Media
D B Corp
Accumulate
320
356
5,886
2,241
2,495
27.8
27.9
21.8
25.6
14.7
12.5
3.8
3.4
26.7
28.5
2.6
2.3
HT Media
Neutral
81
-
1,891
2,495
2,603
11.2
11.2
7.3
8.6
11.1
9.5
0.9
0.8
7.4
8.1
0.3
0.2
www.angelbroking.com
Stock Watch
October 07, 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
Media
Jagran Prakashan
Accumulate
146
156
4,766
1,939
2,122
26.0
26.0
8.3
9.2
17.6
15.8
3.0
2.7
17.5
17.1
2.4
2.2
Sun TV Network
Neutral
358
-
14,118
2,779
3,196
70.2
70.5
22.8
27.3
15.7
13.1
3.9
3.5
26.7
28.3
4.8
4.2
Hindustan Media
Buy
241
292
1,767
920
1,031
20.0
20.0
19.2
20.9
12.5
11.5
2.1
1.8
16.4
15.3
1.5
1.3
Ventures
Metals & Mining
Coal India
Buy
343
400
216,493
72,015
78,415
21.2
21.5
21.7
25.3
15.8
13.6
5.4
5.3
33.1
39.1
2.2
2.1
Hind. Zinc
Neutral
143
-
60,464
15,258
16,495
44.2
45.6
17.6
19.2
8.1
7.5
1.3
1.1
15.9
15.3
1.7
1.2
Hindalco
Neutral
75
-
15,425
104,356
111,186
8.7
9.5
6.7
11.1
11.1
6.8
0.4
0.4
3.5
5.9
0.7
0.6
JSW Steel
Neutral
903
-
21,838
48,125
53,595
18.8
21.0
46.9
97.5
19.3
9.3
0.9
0.9
4.4
9.5
1.3
1.1
NMDC
Neutral
95
-
37,724
8,237
10,893
46.6
44.5
10.0
11.7
9.6
8.2
1.1
0.9
12.5
13.0
4.4
3.3
SAIL
Neutral
53
-
21,848
45,915
53,954
7.2
10.5
1.5
4.4
35.1
12.1
0.5
0.5
2.3
4.1
1.1
1.0
Vedanta
Neutral
86
-
25,407
71,445
81,910
26.2
26.3
12.9
19.2
6.7
4.5
0.5
0.4
7.2
8.9
0.8
0.6
Tata Steel
Neutral
227
-
22,061
136,805
149,228
11.3
11.9
26.4
36.8
8.6
6.2
0.7
0.6
6.0
8.0
0.7
0.6
Oil & Gas
Cairn India
Neutral
159
-
29,773
11,323
12,490
49.4
51.0
20.7
20.7
7.7
7.7
0.5
0.5
6.4
6.1
1.7
1.0
GAIL
Neutral
308
-
39,063
64,856
70,933
9.1
9.6
24.0
28.9
12.9
10.7
1.1
1.0
8.8
9.6
0.8
0.7
ONGC
Neutral
247
-
211,363
154,564
167,321
36.8
37.4
28.6
32.5
8.6
7.6
1.1
1.0
12.7
13.5
1.6
1.5
Petronet LNG
Buy
181
210
13,605
39,007
40,785
3.8
4.2
9.2
11.0
19.8
16.5
2.2
2.0
11.6
12.7
0.4
0.4
Indian Oil Corp
Accumulate
403
455
97,907
359,607
402,760
5.9
6.1
42.5
48.7
9.5
8.3
1.3
1.1
14.1
14.4
0.4
0.3
Reliance Industries
Neutral
896
-
290,131
313,085
362,904
13.1
13.8
78.4
92.9
11.4
9.6
1.2
1.1
10.8
11.6
1.4
1.2
Pharmaceuticals
Alembic Pharma
Neutral
737
-
13,902
2,601
3,115
21.2
20.2
20.8
23.9
35.5
30.9
11.4
8.6
37.2
31.8
5.4
4.4
Aurobindo Pharma
Buy
756
872
44,148
14,923
17,162
23.0
23.0
38.2
43.6
19.8
17.3
6.1
4.6
36.0
30.2
3.3
2.8
Aventis*
Neutral
4,102
-
9,448
2,156
2,455
15.1
16.8
109.7
133.9
37.4
30.6
5.1
4.2
18.4
22.5
4.1
3.4
Cadila Healthcare
Neutral
425
-
43,519
10,224
11,840
20.0
21.0
71.0
85.6
6.0
5.0
1.6
1.3
30.1
28.5
4.3
3.7
Cipla
Neutral
664
-
53,290
14,359
16,884
21.3
19.7
28.4
30.5
23.4
21.8
4.1
3.5
19.3
17.5
3.7
3.1
Dr Reddy's
Neutral
4,244
-
72,365
18,213
21,214
22.6
22.7
163.0
192.5
26.0
22.1
5.4
4.4
22.5
20.0
3.9
3.3
Dishman Pharma
Neutral
374
-
3,020
1,716
1,888
20.2
20.2
16.3
21.6
23.0
17.3
2.2
1.9
9.7
11.7
1.9
1.6
GSK Pharma*
Neutral
3,366
-
28,514
2,870
3,158
20.0
22.1
59.5
68.3
56.6
49.3
16.7
17.2
28.5
34.3
9.4
8.6
Indoco Remedies
Neutral
314
-
2,891
1,088
1,262
18.2
18.2
13.1
15.5
24.0
20.2
4.7
3.9
21.2
21.1
2.7
2.3
Ipca labs
Accumulate
729
800
9,196
3,507
4,078
17.6
18.6
25.8
32.0
28.3
22.8
3.7
3.2
13.8
14.9
2.9
2.5
Lupin
Neutral
2,073
-
93,304
14,864
17,244
26.9
26.9
62.1
71.1
33.4
29.2
8.1
6.4
27.4
24.6
6.0
5.0
Sun Pharma
Neutral
910
-
218,913
28,163
32,610
25.8
30.7
17.4
26.9
52.3
33.8
5.0
4.3
13.0
16.6
7.2
6.0
www.angelbroking.com
Stock Watch
October 07, 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
Power
Tata Power
Neutral
69
-
18,675
35,923
37,402
22.6
22.8
4.1
5.2
17.0
13.4
1.3
1.2
7.5
9.3
1.5
1.4
NTPC
Buy
126
157
103,687
87,064
98,846
23.5
23.5
11.7
13.2
10.8
9.5
1.2
1.1
11.4
12.1
2.2
2.0
Power Grid
Buy
132
170
68,979
20,702
23,361
86.7
86.4
12.1
13.2
10.9
10.0
1.6
1.4
15.6
15.1
8.3
7.7
Telecom
Bharti Airtel
Neutral
349
-
139,549
101,748
109,191
32.1
31.7
12.0
12.5
29.1
27.9
2.0
1.9
6.9
6.7
2.0
1.8
Idea Cellular
Neutral
158
-
56,946
34,282
36,941
32.0
31.5
5.9
6.2
26.8
25.5
2.5
2.2
9.9
9.3
2.2
2.1
zOthers
Abbott India
Neutral
5,792
-
12,308
2,715
3,153
14.5
14.1
134.3
152.2
43.1
38.1
10.8
8.9
27.4
25.6
4.3
3.6
Bajaj Electricals
Buy
248
341
2,501
4,719
5,287
5.2
5.8
8.6
12.7
29.0
19.6
3.3
2.9
11.4
14.8
0.5
0.5
Finolex Cables
Neutral
233
-
3,558
2,728
3,036
10.8
11.0
14.4
16.8
16.2
13.9
2.5
2.1
15.2
15.3
1.0
0.9
Goodyear India*
Buy
565
655
1,303
1,953
1,766
12.4
12.0
67.4
59.6
8.4
9.5
2.1
1.8
27.7
20.2
0.4
0.4
Hitachi
Neutral
1,492
-
4,057
1,806
2,112
9.0
9.2
28.6
29.1
52.2
51.3
13.0
10.5
28.1
22.6
2.3
2.0
Jyothy Laboratories
Neutral
318
-
5,758
1,620
1,847
11.5
11.5
7.3
8.5
43.6
37.5
5.6
5.2
13.3
14.4
3.4
2.9
MRF
Neutral
42,571
-
18,055
20,727
14,841
19.3
18.6
4,905.8
3,351.9
8.7
12.7
2.8
2.3
37.6
19.6
0.8
1.1
Page Industries
Neutral
13,932
-
15,540
1,929
2,450
19.8
20.1
229.9
299.0
60.6
46.6
26.7
18.6
52.1
47.1
8.1
6.3
Relaxo Footwears
Neutral
536
-
6,428
1,767
2,152
12.3
12.5
19.3
25.1
27.8
21.4
6.8
5.3
27.7
27.8
3.7
3.0
Siyaram Silk Mills
Buy
1,001
1,221
938
1,653
1,873
11.7
12.2
99.3
122.1
10.1
8.2
1.8
1.5
19.5
20.2
0.7
0.6
Styrolution ABS India*
Neutral
772
-
1,357
1,271
1,440
8.6
9.2
32.0
41.1
24.1
18.8
2.5
2.2
10.7
12.4
1.0
0.9
Tree House
Buy
298
449
1,262
259
324
56.8
56.8
17.0
21.7
17.5
13.8
1.8
1.6
10.1
11.5
4.8
4.0
TVS Srichakra
Buy
2,609
3,210
1,997
2,127
2,388
15.2
14.9
237.7
267.5
11.0
9.8
4.7
3.3
51.7
39.8
1.0
0.8
HSIL
Accumulate
264
302
1,909
2,182
2,404
16.3
16.5
15.8
18.9
16.7
14.0
1.4
1.3
8.4
9.4
1.2
1.1
Kirloskar Engines India
Neutral
286
-
4,129
2,634
3,252
10.1
12.0
10.9
17.4
26.2
16.4
2.9
2.6
11.4
16.8
1.2
0.9
Ltd
M M Forgings
Buy
541
797
652
563
671
22.1
22.9
51.0
66.5
10.6
8.1
2.2
1.8
23.1
24.1
1.3
1.1
Banco Products (India)
Neutral
127
-
911
1,208
1,353
11.0
12.3
10.8
14.5
11.8
8.8
1.4
1.2
11.9
14.5
0.7
0.6
Competent Automobiles Neutral
144
-
89
1,007
1,114
3.1
3.1
23.7
28.2
6.1
5.1
0.9
0.7
13.9
14.6
0.1
0.1
Nilkamal
Neutral
986
-
1,471
1,948
2,147
10.6
10.3
60.0
67.0
16.4
14.7
2.6
2.2
16.8
16.1
0.8
0.7
Visaka Industries
Buy
138
166
219
1,158
1,272
8.6
9.5
23.7
32.7
5.8
4.2
0.6
0.5
10.1
12.5
0.4
0.3
Transport Corporation of
Buy
246
293
1,872
2,830
3,350
8.8
9.0
14.4
18.3
17.1
13.4
2.6
2.3
15.4
17.1
0.8
0.7
India
Elecon Engineering
Buy
73
87
799
1,452
1,596
14.0
14.7
4.4
6.2
16.6
11.8
1.4
1.3
8.6
11.2
0.9
0.7
Surya Roshni
Buy
130
183
570
2,992
3,223
8.3
8.5
14.7
18.3
8.8
7.1
0.8
0.7
9.8
11.0
0.5
0.4
MT Educare
Buy
135
169
538
286
366
18.3
17.7
7.7
9.4
17.5
14.4
3.7
3.2
20.2
21.1
1.8
1.3
www.angelbroking.com
Stock Watch
October 07, 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
Radico Khaitan
Buy
86
112
1,143
1,565
1,687
11.9
12.4
5.4
6.6
15.9
13.1
1.3
1.2
8.0
9.0
1.2
1.2
Garware Wall Ropes
Accumulate
356
390
780
875
983
10.4
10.6
23.1
27.8
15.4
12.8
2.2
1.9
14.1
14.8
0.9
0.8
Wonderla Holidays
Accumulate
290
322
1,638
206
308
44.0
43.6
9.0
12.9
32.2
22.5
4.4
4.0
13.7
17.8
7.9
5.2
Linc Pen & Plastics
Buy
157
185
232
340
371
8.3
8.9
10.8
13.2
14.5
11.9
2.3
2.0
16.0
17.1
0.7
0.7
The Byke Hospitality
Accumulate
164
181
656
222
287
20.5
20.5
5.6
7.6
29.0
21.7
5.5
4.5
18.9
20.8
3.0
2.3
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 06, 2015
www.angelbroking.com
Market Outlook
October 07, 2015
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
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