Market Outlook
March 8, 2016
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are expected to open in the red tracking the SGX Nifty and weak
BSE Sensex
0.2
39
24,646
Asian cues.
Nifty
0.1
10
7,485
Mid Cap
1.1
114
10,225
US markets closed mixed with the Dow rising for a fifth consecutive session led by
Small Cap
0.8
76
10,286
gains in energy stocks. Crude oil prices continued to rocket higher, finishing the day
at the highest levels of 2016 on speculation that U.S. output has dwindled.
Bankex
1.3
221
17,486
European markets meanwhile ended marginally in the red led by profit booking
Global Indices
Chg (%)
(Pts)
(Close)
following three weeks of gains. Disappointing German factory orders data and weak
Eurozone investor confidence also weighed on investor sentiment. Investors also
Dow Jones
0.4
67
17,074
remained cautious ahead of the European Central Bank policy meeting on
Nasdaq
(0.2)
(9)
4,708
Thursday.
FTSE
(0.3)
(17)
6,182
After three consecutive sessions of strong gains the Indian markets took a pause and
Nikkei
(0.6)
(103)
16,911
closed flat with Sensex and Nifty gaining by 39 and 10 points respectively. Hopes of
Hang Seng
(0.1)
(17)
20,160
rate cut and important announcement by RBI’s relation of banks Tier I capital
Shanghai Com
0.8
23
2,897
continued to play a positive role in buyer’s interest in the PSU banks. PNB which was
beaten down in recent months saw some strong buying and closed 5% up while
Advances / Declines
BSE
NSE
BHEL gained 4.1% on the back on announcing that it had commissioned 700MW
supercritical thermal unit in Karnataka.
Advances
1,509
954
Declines
1,109
586
News & Result Analysis
Unchanged
130
66
LIC to increase its stake in Indian Overseas Bank
Detailed analysis on Pg2
Volumes (` Cr)
Investor’s Ready Reckoner
BSE
3,550
Key Domestic & Global Indicators
NSE
18,178
Stock Watch: Latest investment recommendations on 150+ stocks
Refer Pg4 onwards
Net Inflows (` Cr)
Net
Mtd
Ytd
FII
1,109
3,511
(20,757)
Top Picks
MFs
(221)
(54)
74,034
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
Amara Raja Batteries Auto & Auto Ancillary
Buy
865
1,040
20.2
Top Gainers
Price (`)
Chg (%)
HCL Tech
IT
Buy
835
1,038
24.2
Justdial
760
15.4
LIC Housing Finance Financials
Buy
448
592
32.0
Renuka
14
14.5
Bharat Electronics
Capital Goods
Buy
1,101
1,414
28.5
Kscl
390
9.6
Navkar Corporation Others
Buy
154
265
72.1
Indianb
100
8.9
More Top Picks on Pg3
Edelweiss
59
8.8
Key Upcoming Events
Previous
Consensus
Date
Region
Event Description
Reading
Expectations
Top Losers
Price (`)
Chg (%)
Mar 8 China
Exports YoY%
(11.20)
--
Hathway
36
(5.0)
Euro Zone
GDP s.a. (QoQ)
0.30
--
Kpit
145
(4.8)
Mar 9 UK
Industrial Production (YoY)
(0.40)
--
Cox&Kings
165
(3.9)
Mar 10 China
Consumer Price Index (YoY)
1.80
--
6.(
Mothersumi
240
(3.8)
Deltacorp
62
(3.4)
As on March 7, 2016
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Market Outlook
March 8, 2016
LIC to increase its stake in Indian Overseas Bank:
Life Insurance Corporation (LIC) is planning to increase its stake in Indian
Overseas Bank to 14.5% from the current 10.21% by infusing `200cr into the
bank. Indian Overseas Bank’s Capital Adequacy as per BASEL III stood at 9.73%
at the end of 31st Dec 2015 and hence there need for the bank to raise capital to
meet the Capital adequacy norms going ahead.
The bank will be issuing 8.62cr equity share for raising the said amount, which will
amount to 14.5% dilution to equity at the current levels. The Governments stake in
the bank will reduce to 77.32% from current 81.19%. Looking at the current
Government holding it seems the bank will have enough room to raise capital in
the years to come. However, given its poor performance it might be difficult going
ahead to raise funds from the capital markets.
Indian Overseas Bank has been under pressure for its deteriorating asset quality
and reported a loss of `1,425cr for the 3QFY16 and for the 9MFY16 the loss has
been to the tune of `1,961cr. For the quarter the bank’s Gross NPAs went up by
56.4% yoy and 16.7% qoq to `22,672cr, while its Net NPA went up by 49% yoy
and 13% qoq to `14,174cr.
Gross NPA ratio went up by 164 bps qoq and 452 bps yoy to 12.64% from 11%
and 8.12% respectively. During the same period its Net NPA ratio went up by 90
bps qoq and 280 bps yoy to 8.32%. The NPA level of Indian Overseas Bank’s is
among the highest within the PSU banks. The provisioning coverage ratio of the
bank is also on lower side at 50.36% at the end of 3QFY16.
The sharp rise the NPA in the bank was due to the Asset Quality Review by RBI
where in banks were directed to classify certain stressed and large accounts as
NPA. Consequently provisions of banks across the board went. For IOB the
provisions for the quarter stood at `1,896cr a rise of 60% yoy and 22% qoq.
The banks operating profit was already under pressure to slow down in business
growth as advances grew by a meagre 1.6% yoy to Rs 1, 79,349 cr. Lower
business growth and high interest reversal together with substantial rise in
provisions resulted in sharp loss at the net level for the bank. The bank’s
performance is likely to be under stress in the quarters to come. We don’t have a
rating on the bank.
Economic and Political News
China sets economic growth target at or above 6.5% in 5 year plan
Additional cess to be subsumed in GST within one year
The prime minister has launched Setu Bharatam projects worth `20,000cr
Minister of State for Finance Mr Jayant Sinha says worst is over fort PSU banks.
Corporate News
BHEL has initiated the works for the first ever 800 MW supercritical power
plant based in Tamil Nadu
Indiabulls plans `25,000cr investments over 7 years in Haryana
HPCL to invest `45,000cr by 2020 in refinery expansion, infrastructure
M&M hikes prices of its models after Governments decision to impose 2.5%
cess on diesel vehicles.
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Market Outlook
March 8, 2016
Top Picks ★★★★★
Large Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
To outpace battery industry growth due to better technological
Amara Raja Batteries
14,778
865
1,040
20.2
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
26,580
93
111
18.8
Focus on exports and LCV's provides additional growth
avenue.
Uptick in defense capex by government when coupled with
Bharat Electronics
26,412
1,101
1,414
28.5
BELs strong market positioning, indicate that good times are
ahead for BEL.
The stock is trading at attractive valuations and is factoring all
HCL Tech
1,17,802
835
1,038
24.2
the bad news.
Strong visibility for a robust 20% earnings trajectory, coupled
HDFC Bank
2,57,927
1,021
1,262
23.6
with high quality of earnings on account of high quality retail
business and strategic focus on highly rated corporates.
Back on the growth trend, expect a long term growth of 14%
Infosys
2,68,869
1,171
1,347
15.1
to be a US$20bn in FY2020.
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
22,619
448
592
32.0
post a healthy loan book which is likely to reflect in a strong
earnings growth.
Huge bid pipeline of re-development works at Delhi and other
NBCC
10,970
914
1,089
19.1
State Governments and opportunity from Smart City, positions
NBCC to report strong growth, going forward.
New launches to enable outpace industry growth; margins
TVS Motors
13,692
288
330
14.5
expansion to boost earnings.
Source: Company, Angel Research
Mid Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
Favourable outlook for the AC industry to augur well for
Cooling products business which is out pacing the market
Blue Star
3,074
342
439
28.4
growth. EMPPAC division's profitability to improve once
operating environment turns around.
Economic recovery to have favourable impact on advertising &
circulation revenue growth. Further, the acquisition of a radio
Jagran Prakashan
5,128
157
189
20.5
business (Radio City) would also boost the company's revenue
growth.
Massive capacity expansion along with rail advantage at ICD
Navkar Corporation
2,196
154
265
72.4
as well CFS augurs well for the company
Earnings boost on back of stable material prices and
Radico Khaitan
1,350
102
156
52.4
favourable pricing environment. Valuation discount to peers
provides additional comfort
Strong brands and distribution network would boost growth
Siyaram Silk Mills
925
987
1,354
38.2
going ahead. Stock currently trades at an inexpensive
valuation.
Source: Company, Angel Research
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Market Outlook
March 8, 2016
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
9.0
12.0
8.3
9.9
7.8
7.7
10.0
8.0
7.5
7.6
7.3
8.0
6.3
6.7
6.6
6.7
7.0
6.4
4.8
6.0
4.2
4.3
3.7
5.8
4.0
2.5
3.0
2.5
6.0
2.0
5.0
4.5
-
4.0
(2.0)
(1.3)
(4.0)
3.0
(3.4)
(6.0)
Source: CSO, Angel Research
Source: MOSPI, Angel Research
Exhibit 3: Monthly CPI inflation trends
Exhibit 4: Manufacturing and services PMI
Mfg. PMI
Services PMI
(%)
56.0
5.6
5.7
6.0
5.4
5.4
5.4
5.3
5.0
5.0
54.0
4.9
5.0
4.4
3.7
3.7
52.0
4.0
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
0.0
8.00
(5.0)
7.50
7.00
(10.0)
6.50
(15.0)
6.00
5.50
(20.0)
5.00
(25.0)
4.50
4.00
(30.0)
3.50
(35.0)
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
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Market Outlook
March 8, 2016
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
6.8
6.0
5.3
5.0
4.5
4.0
2.8
1.9
1.9
2.1
2.0
1.4
0.6
0.5
-
(2.0)
(4.0)
(4.1)
(4.5)
(6.0)
Source: Bloomberg, Angel Research
Exhibit 2: 2015 GDP Growth projection by IMF (%, yoy) across select developing and developed countries
(%)
8.0
7.3
6.8
6.0
4.7
4.7
4.0
2.5
2.5
2.6
1.4
1.5
2.0
1.2
0.6
-
(2.0)
(3.0)
(4.0)
(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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Stock Watch
March 08, 2016
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
152
-
2,963
2,097
2,415
14.4
14.4
9.5
11.0
16.0
13.9
3.2
2.8
21.1
21.3
1.5
1.3
United Phosphorus
Accumulate
444
480
19,047
12,500
14,375
18.3
18.3
29.8
35.9
14.9
12.4
2.8
2.3
20.0
20.3
1.6
1.3
Auto & Auto Ancillary
Ashok Leyland
Buy
93
111
26,580
17,995
21,544
11.4
11.6
3.4
4.7
27.5
19.9
4.8
4.4
17.7
22.2
1.4
1.2
Bajaj Auto
Accumulate
2,305
2,585
66,690
22,709
25,860
20.9
20.1
129.0
143.6
17.9
16.1
5.5
4.7
30.7
29.4
2.5
2.1
Bharat Forge
Accumulate
817
875
19,018
7,351
8,318
19.9
19.7
31.2
36.5
26.2
22.4
4.7
4.0
19.3
19.2
2.7
2.4
Eicher Motors
Neutral
19,246
-
52,274
15,556
16,747
15.5
17.3
464.8
597.5
41.4
32.2
15.1
11.1
36.2
34.3
3.3
3.0
Gabriel India
Buy
83
101
1,187
1,415
1,544
8.7
9.0
4.6
5.4
18.0
15.3
3.3
2.9
18.1
18.9
0.8
0.7
Hero Motocorp
Neutral
2,836
-
56,627
28,244
30,532
15.5
15.9
156.7
168.5
18.1
16.8
7.2
6.1
39.9
36.4
1.8
1.7
Jamna Auto Industries Buy
136
160
1,082
1,281
1,473
11.2
11.5
7.6
9.2
17.8
14.7
4.5
3.7
25.4
25.2
0.9
0.8
L G Balakrishnan & Bros Neutral
452
-
709
1,254
1,394
11.6
11.8
35.9
41.7
12.6
10.9
1.7
1.5
13.5
13.8
0.7
0.6
Mahindra and Mahindra Accumulate
1,216
1,364
75,519
38,416
42,904
13.7
13.9
54.8
63.4
22.2
19.2
3.4
3.0
15.4
15.8
1.6
1.4
Maruti
Neutral
3,565
-
107,686
57,865
68,104
16.4
16.7
176.3
225.5
20.2
15.8
3.9
3.3
19.4
21.2
1.6
1.3
Minda Industries
Accumulate
995
1,047
1,578
2,523
2,890
8.7
9.0
55.0
65.4
18.1
15.2
3.5
2.8
19.3
18.7
0.7
0.6
Motherson Sumi
Buy
240
313
31,765
39,343
45,100
8.8
9.1
10.1
12.5
23.8
19.2
7.5
5.9
35.3
34.4
0.9
0.8
Rane Brake Lining
Buy
374
465
296
454
511
11.5
12.0
25.2
31.0
14.8
12.1
2.2
2.0
14.9
16.6
0.8
0.7
Setco Automotive
Neutral
32
-
431
594
741
12.7
13.7
1.7
3.2
19.0
10.1
2.0
1.7
10.4
16.9
1.2
1.0
Tata Motors
Accumulate
344
371
99,190
259,686
273,957
13.0
13.4
25.9
29.5
13.3
11.7
1.7
1.5
8.0
9.0
0.6
0.6
TVS Motor
Accumulate
288
330
13,692
11,263
13,122
6.9
8.5
9.2
15.0
31.3
19.2
7.2
5.7
22.7
29.6
1.2
1.0
Amara Raja Batteries
Buy
865
1,040
14,778
4,892
5,871
17.4
17.6
28.8
37.1
30.0
23.3
7.0
5.6
23.4
24.1
3.0
2.4
Exide Industries
Buy
132
162
11,229
6,950
7,784
14.4
14.8
6.6
7.3
20.0
18.1
2.5
2.3
12.6
12.8
1.3
1.2
Apollo Tyres
Accumulate
170
183
8,671
12,056
12,714
17.2
16.4
23.0
20.3
7.4
8.4
1.3
1.1
17.7
13.6
0.8
0.8
Ceat
Neutral
1,103
-
4,461
6,041
6,597
14.1
13.7
99.5
111.9
11.1
9.9
2.2
1.8
19.6
18.5
0.9
0.8
JK Tyres
Neutral
82
-
1,864
7,446
7,669
15.2
14.0
19.6
18.4
4.2
4.5
1.1
0.9
25.2
19.5
0.6
0.6
Swaraj Engines
Accumulate
871
919
1,081
552
630
14.2
14.7
44.6
54.1
19.5
16.1
4.5
4.1
23.2
25.6
1.8
1.5
Subros
Neutral
85
-
512
1,293
1,527
11.8
11.9
4.2
6.7
20.3
12.7
1.5
1.4
7.7
11.5
0.7
0.6
Indag Rubber
Neutral
162
-
425
283
329
17.0
17.2
13.0
15.4
12.5
10.5
2.7
2.3
21.8
21.6
1.2
1.0
Capital Goods
ACE
Neutral
37
-
370
660
839
4.7
8.2
1.0
3.9
37.4
9.6
1.2
1.0
3.2
11.3
0.7
0.6
BEML
Accumulate
1,051
1,157
4,376
3,277
4,006
6.0
8.9
36.2
64.3
29.0
16.3
2.0
1.8
5.7
11.7
1.4
1.1
Bharat Electronics
Buy
1,101
1,414
26,412
7,737
8,634
16.8
17.2
54.0
61.5
20.4
17.9
2.9
2.6
39.3
45.6
2.5
2.1
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Stock Watch
March 08, 2016
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
Voltas
Buy
246
353
8,127
5,363
5,963
8.0
9.1
11.0
13.8
22.3
17.8
3.4
3.0
16.2
17.9
1.5
1.3
BGR Energy
Neutral
102
-
734
3,615
3,181
9.5
9.4
16.7
12.4
6.1
8.2
0.6
0.6
10.0
7.0
0.6
0.8
BHEL
Neutral
107
-
26,251
33,722
35,272
10.8
11.7
10.5
14.2
10.2
7.6
0.8
0.7
7.0
9.0
0.9
0.8
Blue Star
Buy
342
439
3,074
3,548
3,977
6.3
6.9
13.7
17.2
25.0
19.9
6.3
4.1
26.1
25.4
1.0
0.8
Crompton Greaves
Neutral
141
-
8,853
13,484
14,687
4.9
6.2
4.5
7.1
31.4
19.9
2.2
2.1
7.2
10.8
0.8
0.7
Greaves Cotton
Neutral
127
-
3,108
1,655
1,755
16.6
16.8
7.4
7.8
17.2
16.3
3.4
3.3
21.1
20.6
1.8
1.7
Inox Wind
Buy
295
458
6,554
4,980
5,943
17.0
17.5
26.6
31.6
11.1
9.4
3.3
2.4
35.0
30.0
1.5
1.2
KEC International
Neutral
115
-
2,954
8,791
9,716
6.1
6.8
5.4
8.2
21.3
14.0
2.1
2.0
10.0
14.0
0.6
0.5
Thermax
Neutral
758
-
9,032
6,413
7,525
7.4
8.5
30.5
39.3
24.9
19.3
3.8
3.3
15.0
17.0
1.4
1.1
Cement
ACC
Neutral
1,239
-
23,267
13,151
14,757
16.4
18.3
63.9
83.4
19.4
14.9
2.5
2.3
13.3
16.1
1.6
1.4
Ambuja Cements
Neutral
202
-
31,325
11,564
12,556
19.4
20.7
8.9
10.1
22.7
20.0
2.8
2.7
12.8
13.8
2.4
2.1
HeidelbergCement
Neutral
67
-
1,517
1,772
1,926
13.3
15.4
1.0
3.0
67.0
22.3
1.7
1.6
2.6
7.9
1.4
1.2
India Cements
Neutral
76
-
2,319
4,216
4,840
18.0
19.5
4.0
9.9
18.9
7.6
0.8
0.7
4.0
9.5
0.9
0.7
JK Cement
Accumulate
546
605
3,820
3,661
4,742
10.1
15.8
7.5
28.5
72.9
19.2
2.2
1.9
7.5
22.9
1.5
1.1
J K Lakshmi Cement
Neutral
287
-
3,377
2,947
3,616
16.7
19.9
11.5
27.2
25.0
10.6
2.4
2.0
9.8
20.8
1.6
1.2
Mangalam Cements
Neutral
187
-
498
1,053
1,347
10.5
13.3
8.4
26.0
22.2
7.2
0.9
0.9
4.3
12.5
0.9
0.6
Orient Cement
Neutral
137
-
2,814
1,854
2,524
21.2
22.2
7.7
11.1
17.8
12.4
2.6
2.2
13.3
15.7
2.3
1.6
Ramco Cements
Neutral
366
-
8,702
4,036
4,545
20.8
21.3
15.1
18.8
24.2
19.4
3.0
2.6
12.9
14.3
2.7
2.3
Shree Cement^
Neutral
11,058
-
38,523
7,150
8,742
26.7
28.6
228.0
345.5
48.5
32.0
7.1
6.0
15.7
20.3
5.1
4.1
UltraTech Cement
Accumulate
2,905
3,107
79,719
24,669
29,265
18.2
20.6
82.0
120.0
35.4
24.2
3.8
3.3
11.3
14.7
3.3
2.8
Construction
ITNL
Neutral
73
-
2,416
7,360
8,825
34.0
35.9
7.0
9.0
10.5
8.2
0.4
0.3
3.2
3.7
3.7
3.6
KNR Constructions
Buy
506
603
1,422
937
1,470
14.3
14.0
44.2
38.6
11.4
13.1
2.3
2.0
15.4
15.4
1.6
1.0
Larsen & Toubro
Accumulate
1,194
1,310
111,195
58,870
65,708
8.3
10.3
42.0
53.0
28.4
22.5
2.0
1.8
8.8
11.2
2.1
1.9
Gujarat Pipavav Port
Neutral
155
-
7,501
629
684
51.0
52.2
6.4
5.9
24.2
26.3
3.2
2.9
15.9
12.7
11.6
10.4
MBL Infrastructures
Buy
138
285
570
2,313
2,797
12.2
14.6
19.0
20.0
7.2
6.9
0.8
0.7
11.3
10.6
1.0
0.9
Nagarjuna Const.
Neutral
71
-
3,942
7,892
8,842
8.8
9.1
3.0
5.3
23.6
13.4
1.2
1.1
5.0
8.5
0.7
0.6
PNC Infratech
Accumulate
503
558
2,578
1,873
2,288
13.2
13.5
24.0
32.0
20.9
15.7
2.0
1.8
12.1
12.3
1.5
1.2
Simplex Infra
Neutral
223
-
1,102
5,955
6,829
10.3
10.5
16.0
31.0
13.9
7.2
0.7
0.7
5.3
9.9
0.7
0.6
Power Mech Projects
Neutral
572
-
841
1,539
1,801
12.8
12.7
59.0
72.1
9.7
7.9
1.5
1.2
18.6
16.8
0.6
0.5
www.angelbroking.com
Stock Watch
March 08, 2016
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
Construction
Sadbhav Engineering
Accumulate
252
289
4,325
3,481
4,219
10.7
10.8
8.2
11.7
30.8
21.6
2.9
2.6
10.3
13.5
1.5
1.3
NBCC
Buy
914
1,089
10,970
5,816
7,382
6.9
7.7
29.6
39.8
30.9
23.0
5.5
4.4
24.1
26.7
1.6
1.2
MEP Infra
Neutral
40
-
658
1,956
1,876
28.1
30.5
1.3
3.0
31.1
13.5
6.5
4.4
21.2
32.8
1.8
1.7
SIPL
Neutral
90
-
3,186
675
1,042
62.4
64.7
-
-
3.4
3.9
-
-
16.4
11.1
Financials
Allahabad Bank
Neutral
51
-
3,054
8,569
9,392
2.8
2.9
16.3
27.5
3.1
1.9
0.3
0.2
7.6
11.9
-
-
Axis Bank
Buy
416
494
98,982
26,473
31,527
3.5
3.6
35.7
43.5
11.6
9.6
2.0
1.7
17.9
18.9
-
-
Bank of Baroda
Neutral
149
-
34,274
18,485
21,025
1.9
2.0
13.5
21.1
11.1
7.0
0.9
0.8
7.3
10.6
-
-
Bank of India
Neutral
94
-
7,664
15,972
17,271
1.9
2.0
15.3
33.4
6.2
2.8
0.3
0.2
3.6
7.6
-
-
Canara Bank
Neutral
184
-
9,999
15,441
16,945
2.0
2.1
46.6
70.4
4.0
2.6
0.4
0.3
8.0
11.2
-
-
Dena Bank
Neutral
28
-
1,813
3,440
3,840
2.1
2.3
7.3
10.0
3.9
2.8
0.3
0.2
6.1
7.9
-
-
Federal Bank
Neutral
50
-
8,571
3,477
3,999
3.0
3.0
5.0
6.2
10.0
8.0
1.0
0.9
10.6
11.9
-
-
HDFC
Neutral
1,129
-
178,227
10,358
11,852
3.3
3.3
41.1
47.0
27.5
24.0
5.2
4.8
24.7
24.9
-
-
HDFC Bank
Buy
1,021
1,262
257,927
38,309
47,302
4.3
4.3
49.3
61.1
20.7
16.7
3.6
3.1
18.5
19.7
-
-
ICICI Bank
Buy
221
254
128,174
34,279
39,262
3.3
3.3
21.0
24.4
10.5
9.1
1.8
1.5
14.4
14.7
-
-
IDBI Bank
Neutral
68
-
12,949
9,625
10,455
1.8
1.8
8.5
14.2
8.0
4.8
0.5
0.5
5.9
9.3
-
-
Indian Bank
Neutral
100
-
4,786
6,160
6,858
2.5
2.5
24.5
29.8
4.1
3.3
0.3
0.3
7.7
8.6
-
-
LIC Housing Finance
Buy
448
592
22,619
3,101
3,745
2.5
2.5
33.0
40.2
13.6
11.2
2.5
2.2
19.7
20.5
-
-
Oriental Bank
Neutral
91
-
2,718
7,643
8,373
2.4
2.4
37.2
45.4
2.4
2.0
0.2
0.2
8.2
9.4
-
-
Punjab Natl.Bank
Neutral
83
-
16,298
23,638
26,557
2.8
2.8
17.9
27.2
4.6
3.1
0.5
0.4
8.5
12.0
-
-
South Ind.Bank
Neutral
18
-
2,410
1,965
2,185
2.5
2.5
2.5
3.3
7.2
5.4
0.7
0.6
9.5
11.7
-
-
St Bk of India
Neutral
188
-
146,251
79,958
86,061
2.6
2.6
13.4
20.7
14.1
9.1
1.2
1.1
11.5
12.8
-
-
Union Bank
Neutral
126
-
8,651
12,646
14,129
2.3
2.4
31.0
39.1
4.1
3.2
0.4
0.4
9.8
11.4
-
-
Vijaya Bank
Neutral
34
-
2,904
3,536
3,827
1.9
1.9
5.5
6.7
6.1
5.1
0.5
0.5
7.8
8.8
-
-
Yes Bank
Neutral
759
-
31,911
7,190
9,011
3.2
3.3
58.2
69.7
13.0
10.9
2.3
2.0
19.2
19.6
-
-
FMCG
Asian Paints
Neutral
867
-
83,172
16,553
19,160
16.0
16.2
17.7
21.5
49.1
40.3
13.0
11.7
29.4
31.2
4.9
4.2
Britannia
Neutral
2,853
-
34,232
8,481
9,795
14.0
14.1
65.5
78.3
43.6
36.4
20.6
16.9
38.3
41.2
3.9
3.4
Colgate
Neutral
847
-
23,024
4,836
5,490
19.5
19.7
48.5
53.2
17.5
15.9
12.8
11.1
99.8
97.5
4.6
4.1
Dabur India
Accumulate
249
267
43,759
9,370
10,265
17.1
17.2
7.3
8.1
33.9
30.7
10.2
8.3
33.7
30.6
4.6
4.2
GlaxoSmith Con*
Accumulate
5,623
6,118
23,650
4,919
5,742
17.2
17.4
168.3
191.2
33.4
29.4
9.5
8.1
28.8
28.9
4.4
3.7
www.angelbroking.com
Stock Watch
March 08, 2016
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
Godrej Consumer
Neutral
1,249
-
42,541
10,168
12,886
16.1
16.1
32.1
38.4
38.9
32.5
7.9
7.3
19.7
21.0
4.3
3.4
HUL
Neutral
849
-
183,626
34,940
38,957
17.5
17.7
20.8
24.7
40.8
34.4
45.4
36.3
110.5
114.2
5.1
4.5
ITC
Accumulate
316
359
254,009
36,804
38,776
37.9
37.9
12.2
12.9
25.9
24.5
7.2
6.3
27.7
25.8
6.5
6.1
Marico
Neutral
237
-
30,616
6,551
7,766
15.7
16.0
10.4
12.5
22.9
19.0
6.6
5.5
33.2
32.4
4.6
3.9
Nestle*
Buy
5,283
6,646
50,937
11,291
12,847
22.2
22.3
158.9
184.6
33.2
28.6
17.4
15.6
55.0
57.3
4.4
3.8
Tata Global
Buy
113
144
7,141
8,635
9,072
9.8
9.9
6.5
7.6
17.4
14.9
1.7
1.7
6.8
7.4
0.8
0.7
IT
HCL Tech^
Buy
835
1,038
117,802
42,038
47,503
21.2
21.5
51.5
57.7
16.2
14.5
3.5
2.7
21.5
18.8
2.4
1.9
Infosys
Buy
1,171
1,347
268,869
61,850
69,981
27.5
27.5
59.4
65.7
19.7
17.8
4.2
3.6
21.2
20.1
3.6
3.1
TCS
Buy
2,359
2,854
464,834
108,487
122,590
28.3
28.5
122.8
138.4
19.2
17.1
7.3
6.6
38.0
38.9
3.9
3.4
Tech Mahindra
Buy
452
530
43,674
26,524
29,177
16.2
17.0
28.8
33.6
15.7
13.4
3.0
2.6
19.3
19.1
1.4
1.2
Wipro
Buy
537
680
132,622
50,808
56,189
23.7
23.8
37.3
40.7
14.4
13.2
2.7
2.5
19.2
17.7
2.1
1.7
Media
D B Corp
Accumulate
318
356
5,843
2,241
2,495
27.8
27.9
21.8
25.6
14.6
12.4
3.8
3.4
26.7
28.5
2.5
2.3
HT Media
Neutral
79
-
1,849
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
Buy
157
189
5,128
2,170
2,355
27.2
26.2
8.9
9.9
17.6
15.8
3.7
3.2
20.9
20.5
2.3
2.1
Sun TV Network
Neutral
347
-
13,673
2,779
3,196
70.2
70.5
22.8
27.3
15.2
12.7
3.8
3.4
26.7
28.3
4.7
4.0
Hindustan Media
Neutral
268
-
1,967
920
1,031
20.0
20.0
19.2
20.9
14.0
12.8
2.3
2.0
16.4
15.3
1.7
1.5
Ventures
Metals & Mining
Coal India
Buy
325
380
205,408
76,167
84,130
19.9
22.3
22.4
25.8
14.5
12.6
5.2
5.1
35.5
41.0
2.0
1.8
Hind. Zinc
Neutral
173
-
73,225
14,641
14,026
50.4
50.4
17.7
16.0
9.8
10.8
1.5
1.4
16.2
13.2
2.6
2.5
Hindalco
Neutral
79
-
16,386
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
1,188
-
28,721
42,308
45,147
16.4
20.7
(10.3)
49.5
24.0
1.3
1.3
(1.0)
5.6
1.7
1.6
NMDC
Neutral
89
-
35,306
8,237
10,893
46.6
44.5
10.0
11.7
9.0
7.6
1.0
0.9
12.5
13.0
4.1
3.1
SAIL
Neutral
40
-
16,541
45,915
53,954
7.2
10.5
1.5
4.4
26.6
9.2
0.4
0.4
2.3
4.1
1.0
0.9
Vedanta
Neutral
87
-
25,867
71,445
81,910
26.2
26.3
12.9
19.2
6.8
4.6
0.5
0.4
7.2
8.9
0.8
0.6
Tata Steel
Neutral
288
-
28,005
126,760
137,307
8.9
11.3
6.4
23.1
45.3
12.5
0.9
0.9
2.0
7.1
0.8
0.8
Oil & Gas
Cairn India
Neutral
128
-
24,017
11,323
12,490
49.4
51.0
20.7
20.7
6.2
6.2
0.4
0.4
6.4
6.1
1.2
0.6
GAIL
Neutral
340
-
43,128
64,856
70,933
9.1
9.6
24.0
28.9
14.2
11.8
1.2
1.1
8.8
9.6
0.9
0.8
ONGC
Neutral
201
-
171,965
154,564
167,321
36.8
37.4
28.6
32.5
7.0
6.2
0.9
0.8
12.7
13.5
1.3
1.2
Petronet LNG
Neutral
244
-
18,311
29,691
31,188
5.8
6.2
12.8
13.4
19.1
18.2
2.9
2.5
15.8
14.8
0.7
0.7
Indian Oil Corp
Buy
390
455
94,654
359,607
402,760
5.9
6.1
42.5
48.7
9.2
8.0
1.2
1.1
14.1
14.4
0.4
0.3
www.angelbroking.com
Stock Watch
March 08, 2016
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
Oil & Gas
Reliance Industries
Accumulate
1,007
1,150
326,046
304,775
344,392
12.6
13.4
91.3
102.6
11.0
9.8
1.2
1.1
11.8
12.0
1.0
0.8
Pharmaceuticals
Alembic Pharma
Neutral
639
-
12,046
3,274
3,802
26.9
19.4
35.0
28.7
18.3
22.3
8.1
6.1
55.6
31.2
3.7
3.1
Aurobindo Pharma
Buy
702
856
41,025
14,923
17,162
22.0
23.0
35.7
42.8
19.7
16.4
5.8
4.4
34.0
30.2
3.1
2.7
Aventis*
Neutral
4,401
-
10,135
2,082
2,371
17.4
20.8
118.2
151.5
37.2
29.1
5.4
4.4
19.9
25.5
4.5
3.8
Cadila Healthcare
Neutral
338
-
34,618
10,224
11,840
21.0
22.0
14.6
17.6
23.2
19.2
6.3
5.0
30.8
29.0
3.5
2.9
Cipla
Accumulate
539
605
43,310
13,979
16,447
20.2
18.6
25.7
27.5
21.0
19.6
3.4
3.0
17.6
16.1
3.1
2.6
Dr Reddy's
Buy
3,244
3,933
55,317
16,838
19,575
25.0
23.1
167.5
178.8
19.4
18.1
4.1
3.4
23.1
20.4
3.2
2.7
Dishman Pharma
Neutral
365
-
2,948
1,733
1,906
21.5
21.5
17.0
19.9
21.5
18.4
2.2
2.0
10.5
11.2
2.2
1.9
GSK Pharma*
Neutral
3,244
-
27,477
2,870
3,158
20.0
22.1
59.5
68.3
54.5
47.5
16.1
16.5
28.5
34.3
9.1
8.3
Indoco Remedies
Neutral
277
-
2,550
1,033
1,199
15.9
18.2
9.4
13.6
29.4
20.4
4.4
3.7
15.7
19.7
2.6
2.2
Ipca labs
Buy
576
900
7,268
3,363
3,909
12.9
18.6
13.4
28.0
43.0
20.6
3.1
2.7
7.4
14.0
2.5
2.1
Lupin
Neutral
1,780
-
80,208
13,092
16,561
25.0
27.0
50.4
68.3
35.3
26.1
7.3
5.8
22.8
24.7
5.8
4.5
Sun Pharma
Accumulate
857
950
206,300
28,163
32,610
25.8
30.7
17.4
26.9
49.3
31.9
4.7
4.1
13.0
16.6
6.8
5.7
Power
Tata Power
Neutral
59
-
16,011
35,923
37,402
22.6
22.8
4.1
5.2
14.6
11.5
1.1
1.0
7.5
9.3
1.4
1.3
NTPC
Buy
126
146
103,810
87,271
99,297
23.5
23.5
11.8
13.3
10.7
9.5
1.2
1.1
11.5
12.2
2.2
2.0
Power Grid
Buy
139
170
72,510
20,702
23,361
86.7
86.4
12.1
13.2
11.5
10.5
1.7
1.5
15.6
15.1
8.4
7.8
Telecom
Bharti Airtel
Neutral
330
-
131,954
101,748
109,191
32.1
31.7
12.0
12.5
27.5
26.4
1.9
1.8
6.9
6.7
1.9
1.7
Idea Cellular
Neutral
106
-
38,057
34,282
36,941
32.0
31.5
5.9
6.2
17.9
17.1
1.6
1.5
9.9
9.3
1.7
1.6
zOthers
Abbott India
Neutral
5,080
-
10,794
2,715
3,153
14.5
14.1
134.3
152.2
37.8
33.4
9.4
7.8
27.4
25.6
3.7
3.1
Bajaj Electricals
Buy
174
237
1,752
4,719
5,287
5.2
5.8
8.6
12.7
20.3
13.7
2.3
2.0
11.4
14.8
0.4
0.3
Finolex Cables
Neutral
235
-
3,593
2,520
2,883
12.2
12.0
12.7
14.2
18.5
16.6
2.5
2.2
13.6
13.5
1.2
1.0
Goodyear India*
Buy
486
582
1,120
1,800
1,600
11.7
11.5
58.7
52.9
8.3
9.2
1.9
1.6
24.6
18.7
0.4
0.4
Hitachi
Neutral
1,159
-
3,151
1,779
2,081
7.8
8.8
21.8
33.4
53.2
34.7
8.6
6.9
17.4
22.1
1.8
1.6
Jyothy Laboratories
Neutral
276
-
4,998
1,620
1,847
11.5
11.5
7.3
8.5
37.9
32.6
4.9
4.5
13.3
14.4
3.0
2.5
MRF
Buy
34,273
45,575
14,536
20,316
14,488
21.4
21.1
5,488.0
3,798.0
6.3
9.0
2.1
1.7
41.1
21.2
0.7
0.9
Page Industries
Neutral
10,403
-
11,603
1,929
2,450
19.8
20.1
229.9
299.0
45.3
34.8
20.0
13.9
52.1
47.1
6.0
4.7
Relaxo Footwears
Neutral
414
-
4,969
1,767
2,152
12.3
12.5
19.3
25.1
21.5
16.5
5.3
4.1
27.7
27.8
2.9
2.3
Siyaram Silk Mills
Buy
987
1,354
925
1,636
1,815
11.5
11.5
89.9
104.1
11.0
9.5
1.8
1.6
17.9
17.8
0.7
0.6
Styrolution ABS India*
Neutral
564
-
992
1,271
1,440
8.6
9.2
32.0
41.1
17.6
13.7
1.8
1.6
10.7
12.4
0.7
0.6
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Stock Watch
March 08, 2016
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
TVS Srichakra
Buy
2,245
3,217
1,719
2,035
2,252
15.9
15.3
248.6
268.1
9.0
8.4
3.9
2.8
43.6
33.9
0.9
0.7
HSIL
Accumulate
275
302
1,991
2,123
2,384
16.1
16.5
15.0
18.9
18.3
14.6
1.4
1.3
8.0
9.4
1.3
1.1
Kirloskar Engines India
Neutral
219
-
3,160
2,403
2,554
8.6
9.9
9.2
10.5
23.8
20.8
2.3
2.2
9.7
10.7
1.0
0.9
Ltd
M M Forgings
Buy
437
614
527
511
615
21.7
21.6
43.1
55.8
10.1
7.8
1.8
1.5
19.9
21.2
1.2
0.9
Banco Products (India) Neutral
99
-
710
1,208
1,353
11.0
12.3
10.8
14.5
9.2
6.9
1.1
0.9
11.9
14.5
0.6
0.5
Competent Automobiles Neutral
129
-
79
1,040
1,137
3.2
3.1
25.7
28.0
5.0
4.6
0.8
0.7
15.0
14.3
0.1
0.1
Nilkamal
Neutral
1,085
-
1,619
1,871
2,031
10.7
10.5
63.2
69.8
17.2
15.6
2.8
2.4
17.6
16.6
0.9
0.8
Visaka Industries
Buy
110
144
174
1,086
1,197
9.9
10.3
21.5
28.8
5.1
3.8
0.5
0.4
9.6
11.6
0.4
0.3
Transport Corporation of
Neutral
272
-
2,066
2,830
3,350
8.8
9.0
14.4
18.3
18.9
14.8
2.9
2.5
15.4
17.1
0.9
0.7
India
Elecon Engineering
Neutral
53
-
575
1,359
1,482
10.3
13.7
0.8
3.9
65.7
13.6
1.1
1.0
1.6
7.8
0.8
0.7
Surya Roshni
Buy
138
201
604
2,992
3,223
8.1
8.4
14.7
18.3
9.4
7.5
0.9
0.8
9.7
11.0
0.5
0.4
MT Educare
Neutral
158
-
629
286
366
18.3
17.7
7.7
9.4
20.4
16.9
4.3
3.8
20.2
21.1
2.1
1.6
Radico Khaitan
Buy
102
156
1,350
1,517
1,635
12.7
13.4
5.8
7.1
17.4
14.3
1.5
1.4
8.6
9.6
1.4
1.3
Garware Wall Ropes
Buy
287
473
628
862
974
11.2
11.2
24.9
29.6
11.5
9.7
1.7
1.5
15.1
15.4
0.7
0.6
Wonderla Holidays
Neutral
368
-
2,080
206
308
44.0
43.6
9.0
12.9
40.9
28.5
5.6
5.1
13.7
17.8
10.0
6.7
Linc Pen & Plastics
Neutral
186
-
275
340
371
8.3
8.9
10.8
13.2
17.2
14.1
2.8
2.4
16.0
17.1
0.8
0.8
The Byke Hospitality
Neutral
156
-
625
222
287
20.5
20.5
5.6
7.6
27.7
20.6
5.2
4.3
18.9
20.8
2.9
2.2
Interglobe Aviation
Neutral
872
-
31,414
17,022
21,122
20.7
14.5
63.9
53.7
13.6
16.2
20.4
16.8
149.9
103.2
1.9
1.5
Coffee Day Enterprises
Neutral
237
-
4,890
2,692
2,964
17.0
18.6
-
4.7
-
50.1
2.9
2.7
0.2
5.5
2.2
2.1
Ltd
Navneet Education
Neutral
82
-
1,964
998
1,062
24.1
24.0
5.8
6.1
14.3
13.5
3.2
2.8
22.0
20.6
2.1
1.9
Navkar Corporation
Buy
154
265
2,196
365
436
38.3
37.5
5.6
5.9
27.3
26.2
1.7
1.6
6.3
6.1
6.8
5.9
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on March 04, 2016
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Market Outlook
March 08, 2016
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
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