Market Outlook
May 12, 2016
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
BSE Sensex
(0.7)
(176)
25,597
Indian markets are expected to open on a negative note tracking the SGX Nifty and
Nifty
(0.5)
(39)
7,849
weak overseas market in the previous trading session. However, yesterday the
Bankruptcy code has been passed by the Rajya Sabha which would allow faster
Mid Cap
0.2
18
11,143
recovery of bad debts and should help easing NPAs of banking sector. Banking
Small Cap
(0.0)
(4)
11,038
stocks could take positive cues from this.
Bankex
(0.1)
(10)
19,100
The US market opened with a negative note and the fall accelerated at the close
Wednesday erased nearly all of the sizable gains from the previous day’s session, as
Global Indices
Chg (%)
(Pts)
(Close)
disappointing earnings from Disney and a slump among retailers led to investors
Dow Jones
(1.21)
(217)
17,711
selling off. A slide in consumer-discretionary stocks, which include retail shares such
Nasdaq
(1.26
(49)
4760
as Macy’s and Nike, weighed on the Dow and S&P 500, offsetting a 4% jump in oil
prices
FTSE
0.1
6
6162
Nikkei
0.1
14
16,579
European stocks were slightly lower Wednesday, with German shares particularly
weak on losses among the big auto makers. The German DAX was declined 0.7%
Hang Seng
(0.9)
(187)
20,055
and France's CAC 40 eased 0.55 % while the U.K.'s FTSE 100 was up 0.09%.
Shanghai Com
0.2
4
2,837
Indian markets opened with deep cut yesterday amid concerns over future foreign
investments flows as India and Mauritius signed the Double Taxation Avoidance
Advances / Declines
BSE
NSE
Agreement, under which capital gains earned by Mauritian entity will be taxable In
Advances
1,082
601
India at the full domestic tax rate from FY19-20 onwards. However, during the day
Declines
1,491
939
there was good buying interest and markets recovered to sell off again.
Unchanged
158
79
News & Result Analysis
Volumes (` Cr)
AC, refrigerator sales hit 5-year high in March, signal return of discretionary
spending
BSE
2,574
Result Review: OBC; Kotak Mahindra Bank; TVS Srichakra
NSE
17796
Detailed analysis on Pg2
Net Inflows (` Cr)
Net
Mtd
Ytd
Investor’s Ready Reckoner
FII
383
110
11,901
Key Domestic & Global Indicators
MFs
345
735
3,331
Stock Watch: Latest investment recommendations on 150+ stocks
Refer Pg5 onwards
Top Gainers
Price (`)
Chg (%)
Top Picks
Monsanto
2,049
12.7
CMP
Target
Upside
Company
Sector
Rating
Zeel
448
7.1
(`)
(`)
(%)
Amara Raja
Auto & Auto Ancillary Accumulate
941
1,076
14.4
Balramchin
115
6.3
HCL Tech
IT
Buy
709
1,038
46.5
Dishtv
96
4.9
LIC Housing
Financials
Buy
452
592
30.9
Mrpl
72
4.7
Bharat Electronics
Capital Goods
Buy
1,157
1,414
22.2
Navkar Corporation Others
Buy
176
265
50.8
Top Losers
Price (`)
Chg (%)
More Top Picks on Pg4
Unitech
4
(7.6)
Key Upcoming Events
Indianb
90
(4.0)
Previous
Consensus
Date
Region
Event Description
Amtekauto
33
(3.8)
Reading
Expectations
Pnb
80
(3.8)
May 12 US
Initial Jobless claims
274
270
May 12 Euro zone
Euro zone GDP (QoQ)
(0.60)
(0.60)
Unionbank
117
(3.4)
As on May 11, 2016
May 12 India
Industrial Production YoY
2.00
--
May 13 India
Imports YoY%
(21.56)
--
6.(
More Events on Pg5
Market Outlook
May 12, 2016
AC, refrigerator sales hit 5-year high in March, signal return of
discretionary spending
As per media articles, AC and refrigerators sales have reported record growth
rates for the month of March in the past five years (according to data from market
tracker Gfk). This is largely due to early onset of summer and scorching
temperatures across the country. Additionally, stable prices aided by slight
depreciation of dollar has propelled the demand for such products. As per the
report, the AC sales grew by 59% yoy for the month of March while Refrigerator
sales increased by more than 20%. The month of April is expected to record
similar surge in AC sales. Voltas is said to have posted highest growth of around
70% for March and per our estimates and industry interaction, Blue Star too has
posted growth rates in excess of 50% for the month of March. We concur that this
clearly points towards improving consumer sentiment and expect penetration levels
of room air conditioners in India to improve from current ~3% levels (lower than
China’s ~25%). We are positive on stocks that will benefit from increasing
discretionary spend like Voltas and Blue Star and maintain our Buy rating on both
stocks.
OBC posts net profit of `21.6 cr in Q4
OBC reported a PAT of `21.62cr in 4QFY16 as against a net loss of `178.4cr in
the corresponding period of FY15, on the account of tax gain. Total income
declined 4.68 % to `5,451.6cr during the quarter from `5,719.4cr in the same
period last year. The bank's provisioning for bad loans during the quarter under
review stood at `1,026cr during the quarter, up from `1,106.6cr in the March
quarter of the previous financial year.
The bank has reported a tax gain of `169cr during the quarter. Asset quality of the
further worsened during the quarters with GNPAs going up to 9.57% at the end of
4QFY16 from 5.18 % YoY. Net NPAs during the quarter were 6.7 % as against
3.34 % YoY. For the full financial year, the bank's PAT declined to `156cr
compared with `497cr in FY15.
Kotak Mahindra Bank Q4 net up 32% at `696cr
Kotak Mahindra Bank reported a 32% growth in its standalone PAT to `696cr on
the back of higher NII. On a consolidated basis, profits grew to `1,056cr
compared to `929cr in Q4FY15. NII grew by 65% to `1,857cr in 4QFY16
compared to `1,123 YoY. Other income went up to `682cr compared to `668cr
YoY. However, one should note that the earnings are not strictly comparable to
previous year's figures because the merger between Kotak Mahindra Bank and
ING Vysya Bank came into effect from April 1, 2015
Uday Kotak, Executive Vice Chairman & Managing Director of Kotak Mahindra
Bank said that in order to ensure greater transparency regarding asset quality the
bank has in this quarter reported the list of accounts that fall under SMA 2 (Special
Mention Accounts in which the principal or interest payment is due for 60 days).
Market Outlook
May 12, 2016
It is likely that the lender may see the asset quality pressure easing in the coming
quarters. For FY17, the management has significantly reduced the credit costs
guidance to 45-50 basis points compared to the 83 bps it registered in FY16.
TVS Srichakra (CMP: `2,465/ TP: `2,891/ Upside: 17.3%)
TVS Srichakra reported a good set of numbers for 4QFY2016. The top-line grew
by impressive 13.0% yoy to `525cr which is ahead of our expectation of `502cr.
The EBITDA margin has expanded by marginal 68bp yoy to 14.5% despite of
sharp decline in raw material cost. The 805bp yoy decline in raw material cost was
negated by higher employee and other expenses. The company has been
aggressive in terms of advertisement which may have resulted in increase in other
expenses. We had estimated EBITDA margin of 15.3%. The depreciation expense
declined by 36.1% on yoy terms owing to higher depreciation in 4QFY2015
(adjustments in accounting policy in the previous year). The other income
increased to `18cr (against `3cr in 4QFY2015) and as a result, the reported net
profit grew by 52.0% yoy to `52cr, ahead of our estimate of `45cr.
We have revised our target price downwards on account of sharp rebound in
natural rubber prices which after bottoming out at ~`93/Kg (domestic) in month
of February reached peak of `143/Kg in April. We expect the natural rubber prices
to stabilize at `133/Kg and inch further upwards from there on.
We believe that the company will continue to perform well given that it is a
dominant player in the 2W OEM segment and has gained market share in the
aftermarket segment. Moreover, the threat from the Chinese imports is negligible
in 2W space. The outlook on the 2W industry especially, scooter segment, is
encouraging which we believe augurs well for TVS Srichakra. At current market
price, the stock is trading at 9.4x its FY2018E earnings. We maintain our Buy
recommendation on the stock with a revised target price of `2,891 based on
target P/E of 11.0x for FY2018E.
Y/E
Sales OPM
PAT
EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
2,278
13.4
169
221.0
31.2
11.2
3.5
6.1
0.8
FY2018E
2,565
13.7
201
262.8
29.1
30.5
2.7
5.0
0.7
Economic and Political News
India to file 16 cases against US for WTO treaty violation
Telecos owe Govt `54,828 cr in licence, spectrum fee, says the ministry.
Corporate News
Apollo Tyres Q4FY16 net declines 20% to `245cr.
Vedanta pegs aluminum production cost below $ 1400 in FY17.
Airtel drops data prices by 30% in Mumbai
Market Outlook
May 12, 2016
Quarterly Bloomberg Brokers Consensus Estimate
Dr. Reddy’s Laboratories Ltd. Consol - May 12, 2016
Particulars (` cr)
4QFY16E
4QFY15
y-o-y (%)
3QFY16
q-o-q (%)
Net sales
3,981
3,870
2.9
3,968
0.3
EBITDA
976
765
27.5
926
5.3
EBITDA margin (%)
24.5
19.8
23.3
Net profit
576
519
11.1
579
(0.5)
Nestle India Ltd. Consol - May 12, 2016
Particulars (` cr)
1QCY16E
1QCY15
y-o-y (%)
4QCY15
q-o-q (%)
Net sales
2,161
2,507
(13.8)
1,946
11.0
EBITDA
455
612
(25.6)
379
20.2
EBITDA margin (%)
21.1
24.4
19.5
Net profit
258
320
(19.4)
183
40.9
Glenmark Pharmaceuticals Ltd. Consol - May 12, 2016
Particulars (` cr)
4QFY16E
4QFY15
y-o-y (%)
3QFY16
q-o-q (%)
Net sales
1,889
1,754
7.7
1,764
7.1
EBITDA
398
281
41.5
370
7.7
EBITDA margin (%)
21.1
16.0
21.0
Net profit
209
198
5.5
170
22.7
Cadila Healthcare Ltd. - May 13, 2016
Particulars (` cr)
4QFY16E
4QFY15
y-o-y (%)
3QFY16
q-o-q (%)
Net sales
2,502
2,247
11.4
2,342
6.8
EBITDA
579
501
15.6
591
(2)
EBITDA margin (%)
23.1
22.3
25.2
Net profit
396
355
11.6
399
(0.8)
Bank of Baroda - May 13, 2016
Particulars (` cr)
4QFY16E
4QFY15
y-o-y (%)
3QFY16
q-o-q (%)
Net profit
273
598
(54.5)
(3,342)
108.2
United Breweries Ltd. - May 13, 2016
Particulars (` cr)
4QFY16E
4QFY15
y-o-y (%)
3QFY16
q-o-q (%)
Net sales
1,290
1,045
23.4
1,031
25.2
EBITDA
181
122
48.4
183
(1.2)
EBITDA margin (%)
14.0
11.7
17.8
Net profit
69
48
42.3
72
(5.0)
Union Bank of India - May 13, 2016
Particulars (` cr)
4QFY16E
4QFY15
y-o-y (%)
3QFY16
q-o-q (%)
Net profit
187
444
(57.8)
78
139.7
Market Outlook
May 12, 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
16,070
941
1,076
14.4
products leading to market share gains in both the automotive
OEM and replacement segments.
Uptick in defense capex by government when coupled with
Bharat Electronics
27,779
1,157
1,414
22.2
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
99,973
709
1,038
46.5
the bad news.
Strong visibility for a robust 20% earnings trajectory, coupled
HDFC Bank
2,87,827
1,138
1,262
10.9
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
2,76,775
1,201
1,374
14.4
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
22,813
452
592
30.9
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
11,699
975
1,089
11.7
State Governments and opportunity from Smart City, positions
NBCC to report strong growth, going forward.
Source: Company, AngelResearch
Mid Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
Favorable outlook for the AC industry to augur well for
Cooling products business which is out pacing the market
Blue Star
3,835
426
481
12.8
growth. EMPPAC division's profitability to improve once
operating environment turns around.
With a focus on the low and medium income (LMI) consumer
Dewan Housing
5,744
197
270
37.2
segment, the company has increased its presence in tier-II &
III cities where the growth opportunity is immense.
Commencement of new projects, downtrend in the interest
IL&FS Transport
2,364
72
93
29.4
rate cycle, to lead to stock re-rating
Economic recovery to have favourable impact on advertising
& circulation revenue growth. Further, the acquisition of a
Jagran Prakashan
5,597
171
205
19.7
radio business (Radio City) would also boost the company's
revenue growth.
Speedier execution and speedier sales, strong revenue visibilty
Mahindra Lifespace
1,925
469
554
18.1
in short-to-long run, attractive valuations
Massive capacity expansion along with rail advantage at ICD
Navkar Corporation
2,506
176
265
50.8
as well CFS augurs well for the company
Earnings boost on back of stable material prices and
Radico Khaitan
1,218
92
156
70.4
favourable pricing environment. Valuation discount to peers
provides additional comfort
Strong brands and distribution network would boost growth
Siyaram Silk Mills
1,008
1,075
1,354
26.0
going ahead. Stock currently trades at an inexpensive
valuation.
Source: Company, AngelResearch
Market Outlook
May 12, 2016
Key Upcoming Events
Result Calendar
Date
Company
May 12, 2016
Vijaya Bank, Bank of Maharashtra, Nestle, ITD Cementation, Dr Reddy's, Glenmark Pharma.
Bank of Baroda, Union Bank, Allahabad Bank, Central Bank, UCO Bank, Dena Bank, Indraprasth Gas, Cadila
May 13, 2016
Healthcare
May 14, 2016
Electrosteel Castings, Relaxo, Nilkamal
May 16, 2016
JK Tyre, Petronet LNG, Styrolution
May 17, 2016
Motherson Sumi, Bharat Forge, Syndicate Bank, GlaxoSmith Con
May 18, 2016
J K Lakshmi Cements, Punjab Natl.Bank, JSW Steel , Kirloskar Engines India Ltd, PTC India
May 19, 2016
GSPL, Lupin, Dishman Pharma
May 20, 2016
Ramco Cements, Britannia, Sterling Tools, Coffee Day Enterprises Ltd
Source: Bloomberg, Angel Research
Global economic events release calendar
Date
Time
Country
Event Description
Unit
Period
Bloomberg Data
Last Reported Estimated
May 12, 2016 6:00PM US
Initial Jobless claims
Thousands
May 7
274.00
270.00
4:30PM UK
BOE Announces rates
% Ratio
May 12
0.50
0.50
5:30PM India
Industrial Production YoY
% Change
Mar
2.00
2.50
May 13, 2016
India
Imports YoY%
% Change
Apr
(21.56)
--
US
Producer Price Index (mom)
% Change
Apr
0.20
--
India
Exports YoY%
% Change
Apr
(5.47)
--
2:30PM Euro Zone
Euro-Zone GDP s.a. (QoQ)
% Change
1Q P
0.60
0.60
11:30AM Germany
GDP nsa (YoY)
% Change
1Q P
2.10
1.20
May 14, 201611:00AM China
Industrial Production (YoY)
% Change
Apr
6.80
6.50
May 16, 201612:00PM India
Monthly Wholesale Prices YoY%
% Change
Apr
(0.85)
(0.20)
May 17, 2016 2:00PM UK
CPI (YoY)
% Change
Apr
0.50
--
6:00PM US
Consumer price index (mom)
% Change
Apr
0.10
0.40
6:45PM US
Industrial Production
%
Apr
(0.59)
0.30
6:00PM US
Housing Starts
Thousands
Apr
1,089.00
1,120.00
6:00PM US
Building permits
Thousands
Apr
1,076.00
1,133.00
May 18, 2016 2:30PM Euro Zone
Euro-Zone CPI (YoY)
%
Apr F
(0.20)
--
Source: Bloomberg, Angel Research
Market Outlook
May 12, 2016
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
9.0
8.3
12.0
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
6.0
4.2
4.3
3.7
5.8
3.0
2.5
6.0
4.0
2.0
2.0
5.0
4.5
-
4.0
(2.0)
(1.2)
(1.5)
(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
5.3
5.0
5.0
54.0
4.9
4.8
5.0
4.4
52.0
3.7
3.7
4.0
50.0
3.0
48.0
2.0
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
7.50
7.00
(5.0)
6.50
(10.0)
6.00
(15.0)
5.50
(20.0)
5.00
4.50
(25.0)
4.00
(30.0)
3.50
(35.0)
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
Market Outlook
May 12, 2016
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
6.7
6.0
5.3
4.9
4.5
4.0
2.8
2.1
1.9
2.1
2.0
1.3
0.6
0.7
-
(2.0)
(4.0)
(3.8)
(6.0)
(5.9)
(8.0)
Source: Bloomberg, Angel Research
Exhibit 2: 2016 GDP Growth projection by IMF (%, yoy) across select developing and developed countries
(%)
10.0
7.5
8.0
6.5
6.0
4.9
4.4
4.0
3.0
2.4
1.9
1.5
2.0
1.1
0.6
0.5
(3.8)
(1.8)
-
(2.0)
(4.0)
(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
Market Outlook
May 12, 2016
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
52,764
4.9
30.0
(9.1)
Russia
Micex
1,909
2.6
6.8
11.7
India
Nifty
7,849
3.1
6.6
(3.1)
China
Shanghai Composite
2,837
(7.2)
2.8
(34.5)
South Africa
Top 40
45,840
1.8
3.5
(4.7)
Mexico
Mexbol
45,507
1.7
6.4
1.0
Indonesia
LQ45
827
(1.1)
(1.6)
(5.3)
Malaysia
KLCI
1,645
(4.3)
0.0
(9.7)
Thailand
SET 50
875
(3.5)
6.4
(13.6)
USA
Dow Jones
17,711
0.9
10.6
(1.9)
UK
FTSE
6,162
(0.7)
8.3
(11.6)
Japan
Nikkei
16,579
5.4
(3.6)
(17.0)
Germany
DAX
9,975
3.0
12.3
(12.9)
France
CAC
4,317
0.1
8.0
(15.9)
Source: Bloomberg, Angel Research
Stock Watch
May 12, 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
196
-
3,808
1,612
1,911
13.3
13.3
7.4
9.5
26.5
20.6
4.2
3.8
16.7
18.4
2.4
2.0
United Phosphorus
Buy
593
684
25,431
13,083
15,176
18.5
18.5
31.5
37.4
18.8
15.9
3.8
3.1
21.4
21.4
2.1
1.8
Auto & Auto Ancillary
Ashok Leyland
Accumulate
104
111
29,583
17,995
21,544
11.4
11.6
3.4
4.7
30.6
22.1
5.4
4.9
17.7
22.2
1.6
1.3
Bajaj Auto
Accumulate
2,436
2,585
70,485
22,709
25,860
20.9
20.1
129.0
143.6
18.9
17.0
5.8
5.0
30.7
29.4
2.6
2.3
Bharat Forge
Accumulate
780
875
18,163
7,351
8,318
19.9
19.7
31.2
36.5
25.0
21.4
4.5
3.8
19.3
19.2
2.6
2.3
Eicher Motors
Neutral
20,216
-
54,909
15,556
16,747
15.5
17.3
464.8
597.5
43.5
33.8
15.9
11.7
36.2
34.3
3.5
3.2
Gabriel India
Accumulate
89
101
1,275
1,415
1,544
8.7
9.0
4.6
5.4
19.3
16.4
3.5
3.1
18.1
18.9
0.9
0.8
Hero Motocorp
Neutral
2,885
-
57,611
28,244
30,532
15.5
15.9
156.7
168.5
18.4
17.1
7.4
6.2
39.9
36.4
1.9
1.7
Jamna Auto Industries Accumulate
140
160
1,121
1,281
1,473
11.2
11.5
7.6
9.2
18.5
15.3
4.7
3.8
25.4
25.2
0.9
0.8
L G Balakrishnan & Bros Neutral
461
-
723
1,254
1,394
11.6
11.8
35.9
41.7
12.9
11.1
1.7
1.5
13.5
13.8
0.7
0.6
Mahindra and Mahindra Neutral
1,328
-
82,466
38,416
42,904
13.7
13.9
54.8
63.4
24.2
20.9
3.7
3.3
15.4
15.8
1.8
1.6
Maruti
Neutral
3,820
-
115,379
57,865
68,104
16.4
16.7
176.3
225.5
21.7
16.9
4.2
3.6
19.4
21.2
1.8
1.4
Minda Industries
Neutral
1,001
-
1,588
2,523
2,890
8.7
9.0
55.0
65.4
18.2
15.3
3.5
2.9
19.3
18.7
0.7
0.6
Motherson Sumi
Buy
257
313
33,975
39,343
45,100
8.8
9.1
10.1
12.5
25.4
20.6
8.1
6.3
35.3
34.4
0.9
0.8
Rane Brake Lining
Buy
375
465
297
454
511
11.5
12.0
25.2
31.0
14.9
12.1
2.2
2.0
14.9
16.6
0.8
0.7
Setco Automotive
Neutral
31
-
411
594
741
12.7
13.7
1.7
3.2
18.1
9.6
1.9
1.7
10.4
16.9
1.1
0.9
Tata Motors
Neutral
399
-
115,113
259,686
273,957
13.0
13.4
25.9
29.5
15.4
13.5
2.0
1.8
8.0
9.0
0.6
0.6
TVS Motor
Accumulate
297
330
14,127
11,263
13,122
6.9
8.5
9.2
15.0
32.3
19.8
7.4
5.9
22.7
29.6
1.2
1.0
Amara Raja Batteries
Accumulate
941
1,076
16,070
4,892
5,871
17.4
17.6
28.8
37.1
32.7
25.4
7.6
6.1
23.4
24.1
3.2
2.6
Exide Industries
Accumulate
145
162
12,300
6,950
7,784
14.4
14.8
6.6
7.3
21.9
19.8
2.8
2.5
12.6
12.8
1.5
1.3
Apollo Tyres
Buy
159
183
8,073
12,056
12,714
17.2
16.4
23.0
20.3
6.9
7.8
1.2
1.1
17.7
13.6
0.7
0.7
Ceat
Accumulate
1,043
1,119
4,220
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
81
-
1,841
7,446
7,669
15.2
14.0
19.6
18.4
4.1
4.4
1.0
0.9
25.2
19.5
0.6
0.6
Swaraj Engines
Neutral
1,107
-
1,375
552
630
14.2
14.7
44.6
54.1
24.8
20.5
5.8
5.3
23.2
25.6
2.3
2.0
Subros
Neutral
87
-
523
1,293
1,527
11.8
11.9
4.2
6.7
20.8
13.0
1.6
1.4
7.7
11.5
0.7
0.6
Indag Rubber
Neutral
177
-
463
283
329
17.0
17.2
13.0
15.4
13.6
11.4
3.0
2.5
21.8
21.6
1.4
1.1
Capital Goods
ACE
Neutral
41
-
403
660
839
4.7
8.2
1.0
3.9
40.8
10.5
1.3
1.1
3.2
11.3
0.8
0.6
BEML
Buy
912
1,157
3,797
3,277
4,006
6.0
8.9
36.2
64.3
25.2
14.2
1.7
1.6
5.7
11.7
1.2
1.0
Bharat Electronics
Buy
1,157
1,414
27,779
7,737
8,634
16.8
17.2
54.0
61.5
21.4
18.8
3.1
2.7
39.3
45.6
2.7
2.3
Stock Watch
May 12, 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
Accumulate
319
353
10,559
5,363
5,963
8.0
9.1
11.0
13.8
29.0
23.1
4.5
3.9
16.2
17.9
1.9
1.7
BGR Energy
Neutral
112
-
806
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
126
-
30,901
33,722
35,272
10.8
11.7
10.5
14.2
12.0
8.9
0.9
0.8
7.0
9.0
1.0
1.0
Blue Star
Accumulate
426
481
3,835
3,548
3,977
6.3
6.9
13.7
17.2
31.1
24.8
7.8
5.1
26.1
25.4
1.2
1.0
Crompton Greaves
Neutral
61
-
3,836
13,484
14,687
4.9
6.2
4.5
7.1
13.6
8.6
1.0
0.9
7.2
10.8
0.4
0.4
Greaves Cotton
Neutral
143
-
3,490
1,655
1,755
16.6
16.8
7.4
7.8
19.3
18.3
3.9
3.7
21.1
20.6
2.1
1.9
Inox Wind
Buy
234
286
5,186
4,406
5,605
15.2
15.7
20.4
24.8
11.5
9.4
2.6
1.9
27.9
25.9
1.4
1.1
KEC International
Neutral
129
-
3,304
8,791
9,716
6.1
6.8
5.4
8.2
23.8
15.7
2.4
2.2
10.0
14.0
0.6
0.6
Thermax
Neutral
751
-
8,950
6,413
7,525
7.4
8.5
30.5
39.3
24.6
19.1
3.8
3.3
15.0
17.0
1.4
1.1
VATech Wabag
Neutral
594
-
3,235
2,722
3,336
7.9
8.1
19.5
24.6
30.4
24.1
3.2
2.8
11.1
12.4
1.3
1.0
Cement
ACC
Neutral
1,468
-
27,562
13,151
14,757
16.4
18.3
63.9
83.4
23.0
17.6
3.0
2.7
13.3
16.1
1.9
1.6
Ambuja Cements
Neutral
221
-
34,219
11,564
12,556
19.4
20.7
8.9
10.1
24.8
21.8
3.1
2.9
12.8
13.8
2.6
2.4
HeidelbergCement
Neutral
101
-
2,279
1,772
1,926
13.3
15.4
1.0
3.0
100.6
33.5
2.6
2.4
2.6
7.9
1.9
1.6
India Cements
Neutral
89
-
2,743
4,216
4,840
18.0
19.5
4.0
9.9
22.3
9.0
0.9
0.8
4.0
9.5
1.0
0.8
JK Cement
Accumulate
562
605
3,929
3,661
4,742
10.1
15.8
7.5
28.5
74.9
19.7
2.3
2.0
7.5
22.9
1.5
1.2
J K Lakshmi Cement
Neutral
339
-
3,985
2,947
3,616
16.7
19.9
11.5
27.2
29.5
12.5
2.8
2.4
9.8
20.8
1.8
1.4
Mangalam Cements
Neutral
266
-
711
1,053
1,347
10.5
13.3
8.4
26.0
31.7
10.2
1.3
1.2
4.3
12.5
1.1
0.8
Orient Cement
Neutral
154
-
3,160
1,854
2,524
21.2
22.2
7.7
11.1
20.0
13.9
2.9
2.5
13.3
15.7
2.4
1.7
Ramco Cements
Neutral
494
-
11,754
4,036
4,545
20.8
21.3
15.1
18.8
32.7
26.3
4.0
3.6
12.9
14.3
3.4
3.0
Shree Cement^
Neutral
13,340
-
46,471
7,150
8,742
26.7
28.6
228.0
345.5
58.5
38.6
8.6
7.2
15.7
20.3
6.3
5.0
UltraTech Cement
Neutral
3,196
-
87,715
24,669
29,265
18.2
20.6
82.0
120.0
39.0
26.6
4.2
3.7
11.3
14.7
3.6
3.1
Construction
ITNL
Buy
72
93
2,364
7,360
8,825
34.0
35.9
7.0
9.0
10.3
8.0
0.4
0.3
3.2
3.7
3.7
3.6
KNR Constructions
Accumulate
525
603
1,477
937
1,470
14.3
14.0
44.2
38.6
11.9
13.6
2.4
2.1
15.4
15.4
1.7
1.1
Larsen & Toubro
Neutral
1,324
-
123,375
58,870
65,708
8.3
10.3
42.0
53.0
31.5
25.0
2.2
2.0
8.8
11.2
2.3
2.1
Gujarat Pipavav Port
Neutral
160
-
7,742
629
684
51.0
52.2
6.4
5.9
25.0
27.1
3.3
3.0
15.9
12.7
12.0
10.8
MBL Infrastructures
Buy
130
285
540
2,313
2,797
12.2
14.6
19.0
20.0
6.9
6.5
0.7
0.7
11.3
10.6
0.9
0.8
Nagarjuna Const.
Neutral
77
-
4,289
7,892
8,842
8.8
9.1
3.0
5.3
25.7
14.6
1.3
1.2
5.0
8.5
0.8
0.7
PNC Infratech
Neutral
533
-
2,733
1,873
2,288
13.2
13.5
24.0
32.0
22.2
16.7
2.2
1.9
12.1
12.3
1.6
1.3
Simplex Infra
Neutral
266
-
1,318
5,955
6,829
10.3
10.5
16.0
31.0
16.7
8.6
0.9
0.8
5.3
9.9
0.7
0.6
Stock Watch
May 12, 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
Power Mech Projects
Neutral
573
-
842
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
Sadbhav Engineering
Accumulate
276
298
4,728
3,186
3,598
10.2
10.3
8.0
9.0
34.5
30.6
3.2
2.8
9.4
9.9
1.8
1.6
NBCC
Accumulate
975
1,089
11,699
5,816
7,382
6.9
7.7
29.6
39.8
32.9
24.5
5.9
4.7
24.1
26.7
1.7
1.3
MEP Infra
Neutral
40
-
652
1,956
1,876
28.1
30.5
1.3
3.0
30.9
13.4
6.5
4.4
21.2
32.8
1.8
1.7
SIPL
Neutral
100
-
3,529
675
1,042
62.4
64.7
-
-
3.8
4.3
-
-
16.9
11.4
Engineers India
Neutral
184
-
6,208
1,667
1,725
13.5
16.0
9.7
11.4
19.0
16.2
2.2
2.2
11.7
13.4
2.5
2.5
Financials
Allahabad Bank
Neutral
53
-
3,281
8,569
9,392
2.8
2.9
16.3
27.5
3.3
1.9
0.3
0.2
7.6
11.9
-
-
Axis Bank
Neutral
498
-
118,855
26,204
29,738
3.6
3.5
34.5
35.4
14.4
14.1
2.3
2.0
16.8
14.9
-
-
Bank of Baroda
Neutral
157
-
36,141
18,802
21,088
2.0
2.2
(7.4)
13.0
12.1
1.3
1.0
(4.2)
7.3
-
-
Bank of India
Neutral
87
-
7,080
15,972
17,271
1.9
2.0
15.3
33.4
5.7
2.6
0.3
0.2
3.6
7.6
-
-
Canara Bank
Neutral
187
-
10,157
15,441
16,945
2.0
2.1
46.6
70.4
4.0
2.7
0.4
0.3
8.0
11.2
-
-
Dena Bank
Neutral
29
-
1,944
3,440
3,840
2.1
2.3
7.3
10.0
4.0
2.9
0.3
0.3
6.1
7.9
-
-
Dewan Housing Finance Buy
197
270
5,744
1,828
2,225
2.9
3.0
24.9
29.7
7.9
6.6
1.2
1.1
15.1
16.1
-
-
Federal Bank
Neutral
49
-
8,333
3,279
3,787
2.8
2.9
3.9
5.5
12.3
8.8
1.0
0.9
8.4
10.8
-
-
HDFC
Neutral
1,204
-
190,157
10,358
11,852
3.3
3.3
41.1
47.0
29.3
25.6
5.6
5.1
24.7
24.9
-
-
HDFC Bank
Accumulate
1,138
1,262
287,827
38,606
47,696
4.4
4.5
48.8
61.4
23.3
18.6
4.0
3.5
18.7
20.0
-
-
ICICI Bank
Accumulate
224
243
130,326
34,279
39,262
3.3
3.3
21.0
24.4
10.7
9.2
1.8
1.5
14.4
14.7
-
-
IDBI Bank
Neutral
68
-
13,938
9,625
10,455
1.8
1.8
8.5
14.2
7.9
4.8
0.5
0.5
5.9
9.3
-
-
Indian Bank
Neutral
90
-
4,325
6,160
6,858
2.5
2.5
24.5
29.8
3.7
3.0
0.3
0.3
7.7
8.6
-
-
LIC Housing Finance
Buy
452
592
22,813
3,179
3,758
2.6
2.6
32.9
40.6
13.8
11.1
2.5
2.2
19.6
20.7
-
-
Oriental Bank
Neutral
85
-
2,730
7,643
8,373
2.4
2.4
37.2
45.4
2.3
1.9
0.2
0.2
8.2
9.4
-
-
Punjab Natl.Bank
Neutral
80
-
15,611
23,122
26,022
2.8
2.8
7.0
21.6
11.4
3.7
0.6
0.5
3.4
10.0
-
-
South Ind.Bank
Neutral
18
-
2,431
1,965
2,185
2.5
2.5
2.5
3.3
7.2
5.5
0.7
0.6
9.5
11.7
-
-
St Bk of India
Neutral
185
-
143,573
79,958
86,061
2.6
2.6
13.4
20.7
13.8
9.0
1.1
1.1
11.5
12.8
-
-
Union Bank
Neutral
117
-
8,026
12,646
14,129
2.3
2.4
31.0
39.1
3.8
3.0
0.4
0.3
9.8
11.4
-
-
Vijaya Bank
Neutral
31
-
2,928
3,536
3,827
1.9
1.9
5.5
6.7
5.7
4.7
0.5
0.4
7.8
8.8
-
-
Yes Bank
Neutral
956
-
40,241
7,190
9,011
3.2
3.3
58.2
69.7
16.4
13.7
2.9
2.5
19.2
19.6
-
-
FMCG
Asian Paints
Neutral
907
-
87,038
16,553
19,160
16.0
16.2
17.7
21.5
51.3
42.2
13.6
12.3
29.4
31.2
5.1
4.4
Britannia
Neutral
2,852
-
34,212
8,481
9,795
14.0
14.1
65.5
78.3
43.5
36.4
20.6
16.9
38.3
41.2
4.0
3.4
Stock Watch
May 12, 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
Colgate
Neutral
836
-
22,748
4,136
4,632
22.5
23.3
22.2
25.3
37.7
33.1
22.9
20.4
68.6
67.5
5.4
4.8
Dabur India
Neutral
292
-
51,420
9,370
10,265
17.6
17.3
7.3
8.1
39.9
36.1
10.3
9.5
31.7
30.6
5.3
4.8
GlaxoSmith Con*
Neutral
6,000
-
25,233
4,519
5,142
19.6
19.8
164.3
191.2
36.5
31.4
10.1
8.6
30.8
29.9
5.0
4.4
Godrej Consumer
Neutral
1,389
-
47,288
9,003
10,335
18.1
18.7
34.1
41.8
40.7
33.2
8.8
7.5
23.9
24.8
5.4
4.7
HUL
Neutral
863
-
186,683
33,299
35,497
17.1
17.1
18.9
20.0
45.7
43.1
23.1
26.5
87.6
80.8
5.4
5.1
ITC
Accumulate
318
359
255,901
36,804
38,776
37.9
37.9
12.2
12.9
26.1
24.7
7.2
6.4
27.7
25.8
6.5
6.2
Marico
Neutral
255
-
32,899
6,151
6,966
17.2
17.3
5.4
6.4
47.2
39.8
14.8
11.7
33.2
32.4
5.2
4.6
Nestle*
Neutral
5,597
-
53,967
9,393
10,507
22.2
22.3
106.8
121.8
52.4
46.0
18.4
16.6
34.8
36.7
5.5
4.9
Tata Global
Buy
117
137
7,403
8,635
9,072
9.8
9.9
5.8
7.2
20.2
16.3
1.8
1.7
6.8
7.4
0.9
0.8
Procter & Gamble
Accumulate
6,433
7,369
20,882
2,588
2,939
23.3
23.2
130.2
146.2
49.4
44.0
98.5
94.5
27.6
25.3
7.6
6.6
Hygiene
IT
HCL Tech^
Buy
709
1,038
99,973
42,038
47,503
21.2
21.5
51.5
57.7
13.8
12.3
3.0
2.3
21.5
18.8
2.0
1.6
Infosys
Accumulate
1,201
1,374
276,775
62,441
70,558
27.5
27.5
59.0
65.3
20.4
18.4
4.1
3.7
22.2
22.4
3.9
3.3
TCS
Buy
2,518
3,004
496,105
108,646
122,770
28.3
28.3
123.7
141.0
20.4
17.9
6.7
6.2
33.1
34.6
4.1
3.6
Tech Mahindra
Accumulate
474
530
45,944
26,524
29,177
16.2
17.0
28.8
33.6
16.4
14.1
3.2
2.7
19.3
19.1
1.5
1.3
Wipro
Buy
537
680
132,714
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
323
356
5,937
2,025
2,187
27.4
27.4
17.4
18.9
18.6
17.1
4.2
3.8
22.9
23.7
2.9
2.7
HT Media
Neutral
86
-
2,003
2,495
2,673
12.9
13.2
6.8
7.2
12.7
12.0
1.0
0.9
7.5
7.8
0.4
0.3
Jagran Prakashan
Buy
171
205
5,597
2,170
2,355
27.2
26.2
8.9
9.9
19.2
17.3
4.0
3.5
20.9
20.5
2.5
2.3
Sun TV Network
Neutral
369
-
14,538
2,510
2,763
71.8
71.5
21.9
24.8
16.8
14.9
4.0
3.6
22.8
24.3
5.3
4.8
Hindustan Media
Neutral
268
-
1,966
914
1,016
21.7
21.5
21.9
23.3
12.2
11.5
2.2
1.9
18.0
16.2
1.6
1.3
Ventures
Metals & Mining
Coal India
Buy
284
380
179,227
76,167
84,130
19.9
22.3
22.4
25.8
12.7
11.0
4.6
4.5
35.5
41.0
1.7
1.5
Hind. Zinc
Neutral
167
-
70,711
14,641
14,026
50.4
50.4
17.7
16.0
9.5
10.5
1.5
1.3
16.2
13.2
2.4
2.3
Hindalco
Neutral
92
-
18,915
104,356
111,186
8.7
9.5
6.7
11.1
13.6
8.3
0.5
0.5
3.5
5.9
0.7
0.6
JSW Steel
Neutral
1,291
-
31,205
42,308
45,147
16.4
20.7
(10.3)
49.5
26.1
1.4
1.4
(1.0)
5.6
1.8
1.7
NMDC
Neutral
90
-
35,623
8,237
10,893
46.6
44.5
10.0
11.7
9.0
7.7
1.0
0.9
12.5
13.0
4.1
3.1
SAIL
Neutral
42
-
17,264
45,915
53,954
7.2
10.5
1.5
4.4
27.8
9.6
0.4
0.4
2.3
4.1
1.0
0.9
Vedanta
Neutral
100
-
29,543
71,445
81,910
26.2
26.3
12.9
19.2
7.7
5.2
0.5
0.5
7.2
8.9
0.9
0.7
Tata Steel
Neutral
329
-
31,953
126,760
137,307
8.9
11.3
6.4
23.1
51.7
14.3
1.0
1.0
2.0
7.1
0.8
0.8
Oil & Gas
Cairn India
Neutral
135
-
25,395
11,323
12,490
49.4
51.0
20.7
20.7
6.5
6.6
0.4
0.4
6.4
6.1
1.3
0.7
Stock Watch
May 12, 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
GAIL
Neutral
387
-
49,058
64,856
70,933
9.1
9.6
24.0
28.9
16.1
13.4
1.4
1.3
8.8
9.6
0.9
0.8
ONGC
Neutral
206
-
175,944
154,564
145,998
36.8
37.4
20.8
22.6
9.9
9.1
0.9
0.9
10.1
9.7
1.4
1.5
Petronet LNG
Neutral
277
-
20,745
29,691
31,188
5.8
6.2
12.8
13.4
21.6
20.6
3.2
2.9
15.8
14.8
0.8
0.7
Indian Oil Corp
Accumulate
410
455
99,473
359,607
402,760
5.9
6.1
42.5
48.7
9.7
8.4
1.3
1.1
14.1
14.4
0.4
0.3
Reliance Industries
Buy
975
1,150
315,977
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
582
-
10,975
3,274
3,802
26.9
19.4
35.0
28.7
16.6
20.3
7.4
5.6
55.6
31.2
3.3
2.8
Aurobindo Pharma
Neutral
817
-
47,820
14,923
17,162
22.0
23.0
35.7
42.8
22.9
19.1
6.7
5.1
34.0
30.2
3.6
3.1
Aventis*
Accumulate
4,319
4,738
9,946
2,049
2,375
15.4
17.3
115.4
153.5
37.4
28.1
6.1
4.8
19.3
25.8
4.6
3.9
Cadila Healthcare
Accumulate
333
352
34,075
10,224
11,840
21.0
22.0
14.6
17.6
22.8
18.9
6.2
4.9
30.8
29.0
3.4
2.8
Cipla
Accumulate
536
605
43,049
13,979
16,447
20.2
18.6
25.7
27.5
20.9
19.5
3.4
2.9
17.6
16.1
3.1
2.6
Dr Reddy's
Buy
2,869
3,933
48,931
16,838
19,575
25.0
23.1
167.5
178.8
17.1
16.1
3.6
3.0
23.1
20.4
2.8
2.4
Dishman Pharma
Neutral
164
-
2,642
1,733
1,906
21.5
21.5
10.1
10.0
16.2
16.4
1.9
1.7
10.5
11.2
2.0
1.7
GSK Pharma*
Neutral
3,505
-
29,687
2,870
3,158
20.0
22.1
59.5
68.3
58.9
51.3
17.4
17.9
28.5
34.3
9.8
9.0
Indoco Remedies
Neutral
265
-
2,438
1,033
1,199
15.9
18.2
9.4
13.6
28.2
19.5
4.2
3.6
15.7
19.7
2.4
2.1
Ipca labs
Buy
469
750
5,916
3,363
3,909
12.9
18.6
13.4
28.0
35.0
16.8
2.5
2.2
7.4
14.0
2.1
1.8
Lupin
Neutral
1,593
-
71,810
13,092
16,561
25.0
27.0
50.4
68.3
31.6
23.3
6.5
5.2
22.8
24.7
5.2
4.0
Sun Pharma
Buy
796
950
191,597
28,163
32,610
25.8
30.7
17.4
26.9
45.8
29.6
4.3
3.8
13.0
16.6
6.3
5.2
Power
Tata Power
Neutral
71
-
19,203
35,923
37,402
22.6
22.8
4.1
5.2
17.5
13.8
1.3
1.3
7.5
9.3
1.5
1.4
NTPC
Neutral
141
-
116,344
87,271
99,297
23.5
23.5
11.8
13.3
12.0
10.6
1.3
1.3
11.5
12.2
2.4
2.1
Power Grid
Buy
141
170
73,844
20,702
23,361
86.7
86.4
12.1
13.2
11.7
10.7
1.7
1.5
15.6
15.1
8.5
7.9
Real Estate
MLIFE
Buy
469
554
1,925
826
1,133
20.1
21.8
22.6
30.7
20.8
15.3
1.2
1.1
6.0
7.4
4.2
2.9
Telecom
Bharti Airtel
Neutral
359
-
143,687
101,748
109,191
32.1
31.7
12.0
12.5
30.0
28.8
2.1
1.9
6.9
6.7
2.0
1.9
Idea Cellular
Neutral
111
-
40,056
34,282
36,941
32.0
31.5
5.9
6.2
18.9
17.9
1.7
1.6
9.9
9.3
1.7
1.7
zOthers
Abbott India
Neutral
4,656
-
9,893
2,715
3,153
14.5
14.1
134.3
152.2
34.7
30.6
8.7
7.1
27.4
25.6
3.4
2.8
Bajaj Electricals
Neutral
232
-
2,346
4,719
5,287
5.2
5.8
8.6
12.7
27.2
18.4
3.1
2.7
11.4
14.8
0.5
0.4
Finolex Cables
Neutral
288
-
4,397
2,520
2,883
12.2
12.0
12.7
14.2
22.7
20.3
3.1
2.7
13.6
13.5
1.5
1.3
Goodyear India*
Buy
500
582
1,153
1,800
1,600
11.7
11.5
58.7
52.9
8.5
9.4
1.9
1.7
24.6
18.7
0.4
0.4
Hitachi
Neutral
1,389
-
3,777
1,779
2,081
7.8
8.8
21.8
33.4
63.7
41.6
10.3
8.3
17.4
22.1
2.2
1.9
Jyothy Laboratories
Neutral
318
-
5,766
1,620
1,847
11.5
11.5
7.3
8.5
43.7
37.6
5.6
5.2
13.3
14.4
3.4
2.9
Stock Watch
May 12, 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
MRF
Buy
32,867
45,575
13,940
20,316
14,488
21.4
21.1
5,488.0
3,798.0
6.0
8.7
2.0
1.7
41.1
21.2
0.6
0.8
Page Industries
Neutral
13,063
-
14,570
1,929
2,450
19.8
20.1
229.9
299.0
56.8
43.7
25.1
17.4
52.1
47.1
7.6
5.9
Relaxo Footwears
Neutral
505
-
6,058
1,767
2,152
12.3
12.5
19.3
25.1
26.2
20.1
6.4
4.9
27.7
27.8
3.5
2.8
Siyaram Silk Mills
Buy
1,075
1,354
1,008
1,636
1,815
11.5
11.5
89.9
104.1
12.0
10.3
2.0
1.7
17.9
17.8
0.8
0.7
Styrolution ABS India* Neutral
620
-
1,090
1,271
1,440
8.6
9.2
32.0
41.1
19.4
15.1
2.0
1.8
10.7
12.4
0.8
0.7
TVS Srichakra
Buy
2,469
3,217
1,891
2,035
2,252
15.9
15.3
248.6
268.1
9.9
9.2
4.3
3.1
43.6
33.9
1.0
0.8
HSIL
Neutral
307
-
2,218
2,123
2,384
16.1
16.5
15.0
18.9
20.4
16.3
1.6
1.5
8.0
9.4
1.4
1.2
Kirloskar Engines India
Neutral
235
-
3,403
2,403
2,554
8.6
9.9
9.2
10.5
25.6
22.4
2.5
2.3
9.7
10.7
1.1
1.0
Ltd
M M Forgings
Buy
463
546
559
511
615
21.7
21.6
43.1
55.8
10.7
8.3
2.0
1.6
19.9
21.2
1.3
1.0
Banco Products (India) Neutral
127
-
910
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
148
-
91
1,040
1,137
3.2
3.1
25.7
28.0
5.7
5.3
0.9
0.8
15.0
14.3
0.1
0.1
Nilkamal
Neutral
1,259
-
1,879
1,871
2,031
10.7
10.5
63.2
69.8
19.9
18.1
3.2
2.8
17.6
16.6
1.1
0.9
Visaka Industries
Buy
124
143
196
1,020
1,120
8.7
9.1
13.9
20.1
8.9
6.1
0.6
0.5
6.4
8.7
0.4
0.4
Transport Corporation of
Neutral
260
-
1,980
2,830
3,350
8.8
9.0
14.4
18.3
18.1
14.2
2.8
2.4
15.4
17.1
0.8
0.7
India
Elecon Engineering
Neutral
64
-
692
1,359
1,482
10.3
13.7
0.8
3.9
79.1
16.3
1.3
1.2
1.6
7.8
0.9
0.8
Surya Roshni
Buy
149
201
652
2,992
3,223
8.1
8.4
14.7
18.3
10.1
8.1
0.9
0.9
9.7
11.0
0.5
0.5
MT Educare
Neutral
191
-
760
286
366
18.3
17.7
7.7
9.4
24.7
20.4
5.2
4.6
20.2
21.1
2.6
2.0
Radico Khaitan
Buy
92
156
1,218
1,517
1,635
12.7
13.4
5.8
7.1
15.7
12.9
1.4
1.2
8.6
9.6
1.3
1.2
Garware Wall Ropes
Buy
345
473
754
862
974
11.2
11.2
24.9
29.6
13.9
11.7
2.1
1.8
15.1
15.4
0.9
0.7
Wonderla Holidays
Neutral
379
-
2,140
206
308
44.0
43.6
9.0
12.9
42.1
29.4
5.8
5.2
13.7
17.8
10.3
6.8
Linc Pen & Plastics
Neutral
193
-
286
340
371
8.3
8.9
10.8
13.2
17.9
14.6
2.9
2.5
16.0
17.1
0.9
0.8
The Byke Hospitality
Neutral
155
-
622
222
287
20.5
20.5
5.6
7.6
27.5
20.5
5.2
4.3
18.9
20.8
2.8
2.2
Interglobe Aviation
Neutral
1,061
-
38,225
17,022
21,122
20.7
14.5
63.9
53.7
16.6
19.8
24.9
20.4
149.9
103.2
2.3
1.8
Coffee Day Enterprises
Neutral
262
-
5,398
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
Neutral
89
-
2,120
998
1,062
24.1
24.0
5.8
6.1
15.5
14.6
3.4
3.0
22.0
20.6
2.2
2.1
Navkar Corporation
Buy
176
265
2,506
365
436
38.3
37.5
5.6
5.9
31.2
29.9
2.0
1.8
6.3
6.1
7.7
6.6
UFO Moviez
Neutral
530
-
1,462
558
619
32.0
33.2
22.5
30.0
23.5
17.7
2.8
2.4
12.0
13.8
2.5
2.1
VRL Logistics
Neutral
390
-
3,558
1,725
1,902
16.5
16.7
12.2
14.6
32.0
26.8
6.7
5.9
20.8
21.9
2.2
2.0
Team Lease Serv.
Neutral
900
-
1,539
2,565
3,229
1.3
1.5
15.2
22.8
59.3
39.5
4.7
4.2
8.0
10.7
0.5
0.4
Stock Watch
May 12, 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
S H Kelkar & Co.
Neutral
224
-
3,242
928
1,036
15.3
15.1
4.9
6.1
45.4
36.7
4.3
3.9
9.4
10.7
3.4
3.0
Quick Heal
Neutral
268
-
1,878
339
408
27.8
27.3
7.1
7.7
37.9
34.6
3.2
3.2
8.5
9.3
4.5
3.7
Narayana Hrudaya
Neutral
301
-
6,146
1,603
1,873
10.9
11.5
1.0
2.6
315.7
113.7
7.6
7.0
2.4
6.1
4.0
3.4
Manpasand Bever.
Neutral
540
-
2,703
540
836
19.9
19.6
10.2
16.9
52.7
32.0
4.3
3.8
8.1
12.0
4.7
3.0
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on May 11, 2016
Market Outlook
May 12, 2016
Research Team Tel: 022 - 39357800
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