Market Outlook
August 13, 2015
Dealer’s Diary
Domestic Indices
Chg (%)
(Pts)
(Close)
BSE Sensex
(1.3)
(354)
27,512
Indian markets are expected to open flat tracking SGX Nifty.
Nifty
(1.3)
(113)
8,349
Dow index closed on flat note, after falling sharply in early trading on the heels of
MID CAP
(2.5)
(286)
11,216
news the Chinese central bank once again moved to devalue its currency, stocks
SMALL CAP
(2.1)
(254)
11,665
showed a substantial turnaround over the course of the trading session.
BSE HC
0.5
86
17,576
BSE PSU
(3.4)
(261)
7,304
European stocks were pummeled Wednesday, extending steep weekly losses after
China doubled down on yesterday's shock yuan devaluation.
BANKEX
(3.0)
(644)
20,712
AUTO
(2.5)
(494)
18,925
Indian equities fell sharply on Wednesday as global equity and commodity markets
METAL
(4.4)
(362)
7,919
continued to reel under pressure on fears that China's yuan devaluation could spark
OIL & GAS
(3.4)
(334)
9,429
a global currency war and weigh on global economic growth. China's central bank
BSE IT
2.6
292
11,568
today devalued the yuan for the second day running, boosting the appeal of top-
Global Indices
Chg (%)
(Pts)
(Close)
rated government bonds.
Dow Jones
(0.0)
(0)
17,403
News & Result Analysis
NASDAQ
0.2
8
5,044
CPI inflation eases on modest fruits & vegetables inflation
FTSE
(1.4)
(93)
6,571
IIP growth improves to 3.8%
Nikkei
(1.6)
(328)
20,393
Result Review: Cadila Healthcare, Aurobindo Pharmaceuticals, India Cements,
Hang Sang
(2.4)
(582)
23,916
Setco Automotive, TVS Srichakra, Abbott India, Goodyear India
Straits Times
(2.9)
(92)
3,061
Refer detailed news & result analysis on the following page
Shanghai Com
(1.1)
(42)
3,886
Markets Today
The trend deciding level for the day is 27,625 / 8,378 levels. If NIFTY trades above
Indian ADR
Chg (%)
(Pts)
(Close)
this level during the first half-an-hour of trade then we may witness a further rally up
INFY
2.2
0.4
$17.9
to 27,771 - 28,029 / 8,418 - 8,487 levels. However, if NIFTY trades below
WIT
2.8
0.3
$12.7
27,625 / 8,378 levels for the first half-an-hour of trade then it may correct towards
IBN
(1.2)
(0.1)
$9.8
27,367 - 27,221 / 8,309 - 8,269 levels.
HDB
1.2
0.7
$63.0
Indices
S2
S1
PIVOT
R1
R2
SENSEX
27,221
27,367
27,625
27,771
28,029
Advances / Declines
BSE
NSE
NIFTY
8,269
8,309
8,378
8,418
8,487
Advances
681
230
Declines
2,177
1,296
Net Inflows (August 11, 2015)
Unchanged
117
53
` cr
Purch
Sales
Net
MTD
YTD
FII
3,544
4,175
(631)
1,335
142,305
Volumes (` cr)
MFs
570
460
111
(427)
57,521
BSE
3,596
NSE
19,263
FII Derivatives (August 12, 2015)
` cr
Purch
Sales
Net
Open Interest
Index Futures
1,300
3,801
(2,501)
14,827
Stock Futures
3,300
2,966
333
50,421
Gainers / Losers
Gainer
Loser
Company
Price (`)
chg (%)
Company
Price (`)
chg (%)
RAJESHEXPO
578
6.0
HDIL
79
(9.0)
CADILAHC
2,017
5.2
VEDL
114
(8.0)
INFY
1,142
3.4
HINDPETRO
881
(7.6)
HCLTECH
970
3.2
PRESTIGE
207
(7.5)
TECHM
557
3.0
KSCL
668
(7.3)
www.angelbroking.com
Market Outlook
August 13, 2015
CPI inflation eases on modest fruits & vegetables inflation
The combined CPI for Jul-15 eased to 3.8% as compared to 5.4% in Jun-15. The
significant moderation in inflation mainly came on the back of fall in the inflation
of fruits & vegetables. The CPI for vegetables reported a decline of 7.9% in Jul-15
as against an increase of 5.3% in the previous month. Inflation in fruits also eased
to 1.5% in Jul-15 from 3.5% in Jun-15. This in turn pulled down inflation in food &
beverages segment to 2.9% in Jul-15 as compared to 5.7% in the previous month.
With moderating food inflation, inflation in rural area also declined to 4.4% in Jul-
15 from 6.1% in Jun-15. Inflation in urban area stayed at 2.9% in Jul-15 as
against 4.6% in the previous month.
IIP growth improves to 3.8%
IIP growth improved to 3.8% in Jun-15 from 2.5% in May-15. Growth in
manufacturing sector remained at 4.6% in Jun-15 as compared to 2.0% in May-
15. Consumer durables segment registered substantial growth of 16.0% (y-o-y) in
Jun-15. However, this can largely be attributed to the low-base of the previous
year, where it had declined by 23.2% in Jun-14. On m-o-m basis, consumer
durables reported a decline of 2.6% in Jun-15. Capital goods witnessed a decline
of 3.6% (y-o-y) in Jun-15 as against an increase of 2.2% in the previous month.
Result Review
Cadila Healthcare (CMP: `2017/ TP: / Upside :)
For 1QFY2016, Cadila Healthcare posted robust results. On sales the company,
posted sales of `2378cr V/s `2451cr expected, a yoy growth of 17.8%, driven by
exports. The domestic formulations (`742cr) grew by 9.9% yoy, while the exports
(`1326cr) grew by 35.6% yoy. The key export markets which posted robust growth
was US (37.5% yoy growth), Emerging Markets Formulations (19.5% yoy growth).
On the operating front, the gross margins came in 64.3% V/s 64.2% expected and
59.7% in 1QFY2015. The OPM, came in at 20.1% V/s 20.5% expected, yoy
expansion of 303bps.On the net profit front, company posted Adj net profit of
`352cr V/s `372cr expected, a yoy growth of 50.1%. The R&D expenditure, during
the quarter came in around 7.1% of sales V/s 5.2% of sales in 1QFY2015. We
recommend a neutral rating on the stock.
Y/E
Sales OPM PAT EPS
ROE
P/E
P/BV EV/Sales EV/EBITDA
Mar
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2016E
10,224
19.7
1,429
69.8
29.6
28.9
7.7
4.1
20.5
FY2017E
11,840
20.0
1,658
81.0
27.3
24.9
6.1
3.4
17.1
Aurobindo Pharmaceuticals (CMP: `744/ TP: / Upside: )
For 1QFY2016, Aurobindo Pharmaceuticals posted decent set of results. The
company posted a sales of `3320cr v/s `3400cr expected, a yearly growth of
14%, driven by formulations which grew 15.9% yoy. On the operating front, the
operating profit came in at `724.6cr and reported a OPM of 21.8% v/s 20.3%
expected, yoy contraction of 80bps. On the net profit front, the company posted a
net profit of `432.4cr v/s `448cr, a yoy growth of 4%. We recommend a neutral
rating on the stock.
www.angelbroking.com
Market Outlook
August 13, 2015
Y/E
Sales OPM PAT EPS
ROE
P/E
P/BV EV/Sales EV/EBITDA
Mar
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2016E
14,435
22.6
2,110
36.1
34.4
20.6
6.1
3.4
14.8
FY2017E
16,600
22.6
2,407
41.2
29.4
18.1
4.6
2.9
12.7
India Cement (CMP: `83/ TP: `132 / Upside: 59%)
India Cement 1QFY2016, results were better than expected on profitability front.
The Net sales during the quarter declined by 13% yoy to `1071cr and was below
our estimate of `1153.3cr. However operating profit grew by 19.9% yoy to `195cr
and was better than estimate of `176cr. The EBITDA improvement was largely due
to 18% yoy decline in operating cost. EBITDA margin during the quarter improved
by 500bp yoy to 18.2% and was above our estimate of 15.3%. The company
reported net profit at `40.1cr as against loss of `3cr during same quarter last
year. We maintain Buy rating on the stock with target price of `132.
Y/E
Sales OPM PAT EPS
ROE
P/E
P/BV EV/Sales EV/EBITDA
Mar
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2016E
4,716
14.9
30
1.0
1.0
84.0
0.8
0.9
6.2
FY2017E
5,133
15.8
138
4.5
4.5
18.5
0.8
0.8
5.2
Setco Automotive Ltd (CMP: `241/ TP: `286 /Upside:19%)
Setco Automotive Ltd (SAL) 1QFY2016 results were below estimates due to lower
than anticipated topline and margin performance. SAL revenues disappointed
growing 9% yoy to `103.6 cr v/s expectations of `112 cr. SAL topline growth
lagged the MHCV industry which is currently growing by about 15-18%. The
operating margins at
11% declined
80 bp yoy and were lower than our
expectations of 12.7%. Increase in other expenses led to a miss on the margin
front. Given the subdued operating performance, the Net Profit at `4.3 cr declined
marginally 6% yoy and was below our estimates of `5 cr. We currently have Buy
rating on the stock but would review our estimates post interaction with the
management.
Y/E
Sales OPM
PAT
EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2016E
663
13.2
32
12.1
14.3
19.9
2.8
8.5
1.1
FY2017E
781
14.3
51
19.0
18.9
12.7
2.4
6.8
1.0
TVS Srichakra (CMP: `2,740/ TP: `3,054/ Upside: 11.4%)
TVS Srichakra (TVSSL) reported an impressive set of numbers for 1QFY2016.
TVSSL’s top-line for the quarter grew by 11.7% yoy to `504cr, which is above our
estimate of
`489cr. The raw material cost during the quarter declined by
whopping 1,012bp yoy to 51.2% of sales. Employee cost increased by 232bp yoy
to 10.1% of sales while other expenses grew by 19bp yoy to 22.1% of sales. On
the back of lower raw material cost, the EBITDA margin expanded by 761bp yoy to
16.5%. Another positive development is on interest expense side which declined by
48.3% yoy to `5cr. The other income during the quarter increased to `2.2cr
against `0.1cr in 1QFY2015. Aided by better operating performance, lower
www.angelbroking.com
Market Outlook
August 13, 2015
interest expense and higher other income, the net profit surged to
`49cr
representing a 183.7% yoy growth.
At current market price, the stock is trading at 10.8x its FY2017E earnings. We
have an Accumulate recommendation on the stock with target price of `3,054
based on target P/E of 12x for FY2017E.
Y/E
Sales OPM
PAT
EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2016E
2,125
15.1
180
234.6
42.2
11.7
4.9
7.0
1.1
FY2017E
2,388
14.6
195
254.5
33.0
10.8
3.6
6.1
0.9
Abbott India (CMP: `4,520/ TP:-/ Upside:-)
For 1QFY2016, Abbott India reported a good set of numbers. The top-line for the
quarter improved by 20.5% yoy to `633cr, which is in-line with our estimate of
`630cr. The raw material cost for the quarter remained flat, growing by 50bp yoy
to 57.4% of sales while employee and other expenses declined by 82bp yoy and
147bp yoy to 13.3% and 14.1% of sales respectively. This resulted in EBITDA
margin expanding by 179bp yoy to 15.1%, against our estimate of 12.6%. Aided
by better operating performance, the net profit grew by 35.9% yoy to `69cr vis-à-
vis our expectation of `50cr.
At the current market price, the stock is trading at PE of 29.7x its FY2017E
earnings. We have a Neutral view on the stock.
Y/E
Sales OPM
PAT
EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2016E
2,715
14.5
285
134.3
27.4
33.7
8.4
22.4
0.7
FY2017E
3,153
14.1
324
152.2
25.6
29.7
6.9
19.4
0.7
Goodyear India (CMP: `582/ TP: `655/ Upside: 12.5%)
For 2QFY2016, Goodyear reported a good set of numbers. The top-line witnessed
a marginal decline of 0.2% on the yoy basis to `432cr, in-line with our estimate of
`428cr. The raw material cost declined by 636bp yoy to 64.3% of sales while
employee and other expense increased by 101bp yoy and 206bp yoy to 6.4% and
15.6% of sales respectively. As a result, EBITDA margin expanded by 329bp yoy to
13.6%. On the back of lower raw material cost, the net profit for the quarter
increased by 25.5% yoy to `36cr.
In the near term, we believe that poor tractor sales are likely to curb top-line
growth for the company (which is evident in the past two quarter where the growth
has been disappointing). However the company is looking to enter newer
segments and is also focusing on increasing its presence in passenger car OEM
and aftermarket segment.
Note- Goodyear is extending its Financial Year by one quarter to March 31, 2016.
Hence our FY2016E numbers account for 5 quarters.
Goodyear India remains one of the cheapest MNCs available (market cap range
of `1,000cr-`5000cr), trading at TTM PE of 16.0x while most MNC peers trade at
multiples of 20.0x or above. At current market price of `582, the stock is trading
www.angelbroking.com
Market Outlook
August 13, 2015
at 9.8x its FY2017E earnings. We have an Accumulate rating on the stock with a
target price of `655 based on target P/E of 11.0x for FY2017E.
Y/E
Sales OPM
PAT
EPS ROE P/E P/BV EV/EBITDA EV/Sales
Mar
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2016E
1,953
12.4
156
67.4 27.7
8.6
2.2
3.8
0.5
FY2017E
1,766
12.0
137
59.6 20.2
9.8
1.8
3.7
0.4
Quarterly Bloomberg Brokers Consensus Estimate
Oil & Natural Gas Corp Ltd - August 13, 2015
Particulars (` cr)
1QFY16E
1QFY15
y-o-y (%)
4QFY15
q-o-q (%)
Net sales
23,628
21,747
8.6
21,303
10.9
EBITDA
13,477
8,864
52.0
7,619
76.9
EBITDA margin (%)
57.0
40.8
35.8
Net profit
6,071
4,782
27.0
3,935
54.3
Indian Oil Corp Ltd - August 13, 2015
Particulars (` cr)
1QFY16E
1QFY15
y-o-y (%)
4QFY15
q-o-q (%)
Net sales
101,442
124,666
(18.6)
93,492
8.5
EBITDA
6,136
3,697
66.0
9,284
(33.9)
EBITDA margin (%)
6.0
3.0
9.9
Net profit
4,213
2,523
67.0
6,285
(33.0)
Tata Power Co Ltd Consol - August 13, 2015
Particulars (` cr)
1QFY16E
1QFY15
y-o-y (%)
4QFY15
q-o-q (%)
Net sales
8,594
8,739
(1.7)
8,167
5.2
EBITDA
1,866
1,775
5.1
1,962
(4.9)
EBITDA margin (%)
21.7
20.3
24.0
Net profit
186
(111)
0.0
159
16.7
DLF Ltd Consol - August 13, 2015
Particulars (` cr)
1QFY16E
1QFY15
y-o-y (%)
4QFY15
q-o-q (%)
Net sales
1,991
1,725
15.4
1,954
1.9
EBITDA
740
737
0.4
696
6.4
EBITDA margin (%)
37.2
42.7
35.6
Net profit
152
128
19.1
172
(11.3)
Reliance Capital Ltd Consol - August 14, 2015
Particulars (` cr)
1QFY16E
1QFY15
y-o-y (%)
4QFY15
q-o-q (%)
Net profit
215
164
31.3
407
(47.1)
Power Finance Corp Ltd - August 14, 2015
Particulars (` cr)
1QFY16E
1QFY15
y-o-y (%)
4QFY15
q-o-q (%)
Net sales
2,527
5,918
(57.3)
6,388
(60.4)
EBITDA
2,497
5,866
(57.4)
6,365
(60.8)
EBITDA margin (%)
98.8
99.1
99.6
Net profit
1,615
1,448
11.5
1,561
3.5
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Market Outlook
August 13, 2015
Bharat Petroleum Corp Ltd - August 14, 2015
Particulars (` cr)
1QFY16E
1QFY15
y-o-y (%)
4QFY15
q-o-q (%)
Net sales
54,532
66,750
(18.3)
51,304
6.3
EBITDA
2,639
1,520
73.6
4,496
(41.3)
EBITDA margin (%)
4.8
2.3
8.8
Net profit
1,573
1,216
29.3
2,853
(44.9)
Steel Authority of India Ltd - August 14, 2015
Particulars (` cr)
1QFY16E
1QFY15
y-o-y (%)
4QFY15
q-o-q (%)
Net sales
10,150
11,196
(9.3)
11,469
(11.5)
EBITDA
638
1,130
(43.5)
930
(31.3)
EBITDA margin (%)
6.3
10.1
8.1
Net profit
(63)
530
0.0
334
0.0
Cipla Ltd/India - August 14, 2015
Particulars (` cr)
1QFY16E
1QFY15
y-o-y (%)
4QFY15
q-o-q (%)
Net sales
2,783
2,402
15.9
2,607
6.7
EBITDA
544
533
2.2
393
38.4
EBITDA margin (%)
19.6
22.2
15.1
Net profit
300
332
(9.6)
214
40.4
Hindalco Industries Ltd - August 14, 2015
Particulars (` cr)
1QFY16E
1QFY15
y-o-y (%)
4QFY15
q-o-q (%)
Net sales
9,055
7,931
14.2
9,219
(1.8)
EBITDA
711
748
(5.0)
848
(16.1)
EBITDA margin (%)
7.9
9.4
9.2
Net profit
162
328
(50.6)
160
1.5
Economic and Political News
July CPI inflation eases to 3.78%; June IIP improves to 3.8%
Indirect tax numbers show improvement in economic momentum: CEA
Govt to raise tariffs on some base metals by 2.5%
Corporate News
CAG pulls up SAIL for delay in expansion plans
US FDA clears Nestle's Maggi noodles
DLF raises `1,000 crore through debentures
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Market Outlook
August 13, 2015
Top Picks
Large Cap
Market
CMP
Target
Upside
Company
Sector
Rating
Cap (` Cr)
(`)
(`)
(%)
Axis Bank
Financials
1,32,591
Buy
558
716
28.3
ICICI Bank
Financials
1,69,360
Buy
292
370
26.8
Inox Wind
Capital Goods
8,686
Buy
391
505
29.0
LIC Housing Fin. Financials
24,161
Buy
479
590
23.2
Power Grid
Power
71,045
Buy
136
170
25.2
TCS
IT
5,23,255
Buy
2,671
3,168
18.6
Tech Mahindra IT
53,538
Buy
557
646
16.1
Yes Bank
Financials
32,209
Buy
770
989
28.4
Infosys
IT
2,62,254 Accumulate
1,142
1,306
14.4
Sun Pharma
Pharmaceuticals
2,08,458 Accumulate
866
950
9.7
Source: Angel Research, Bloomberg
Mid Cap
Market
CMP
Target
Upside
Company
Sector
Rating
Cap (` Cr)
(`)
(`)
(%)
Bajaj Electricals
Others
2,688
Buy
267
341
27.9
Garware Wall Ropes Others
666
Buy
304
390
28.2
Hindustan Media
Media
1,710
Buy
233
292
25.3
JK Tyre
Auto Ancillary
2,317
Buy
102
147
43.9
MBL Infrastructures
Construction
1,042
Buy
251
395
56.9
Radico Khaitan
Others
1,264
Buy
95
112
17.9
Setco Automotive
Auto Ancillary
645
Buy
241
286
18.5
Surya Roshni
Others
605
Buy
138
193
39.8
Minda Industries
Auto Ancillary
933 Accumulate
588
652
10.8
MT Educare
Others
495 Accumulate
124
141
13.5
Source: Angel Research, Bloomberg
www.angelbroking.com
Market Outlook
August 13, 2015
Result Calendar
Date
Company
Jyoti Structures, ONGC, IOC, Gujarat Gas, Page Industries, Surya Roshni, Orchid Chemicals, Tata Power Co., DLF,
August 13, 2015
Unitech
Amara Raja Batteries, Power Fin.Corpn., Reliance Capital, SAIL, Hindalco, Bhushan Steel, Monnet Ispat, BPCL,
August 14, 2015
Cravatex, Elecon Engineering, Cipla, GIPCL
Source: Bloomberg, Angel Research
Global economic events release calendar
Date
Time
Country Event Description
Unit
Period
Bloomberg Data
Last Reported Estimated
August 13, 2015
6:00PM US
Initial Jobless claims
Thousands
Aug 8
270.00
270.00
August 14, 2015
India
Imports YoY%
% Change
Jul
(13.40)
--
India
Exports YoY%
% Change
Jul
(15.80)
--
2:30PM Euro Zone Euro-Zone CPI (YoY)
%
Jul F
0.20
0.20
6:45PM US
Industrial Production
%
Jul
0.23
0.30
12:00PM India
Monthly Wholesale Prices YoY%
% Change
Jul
(2.40)
(2.90)
2:30PM Euro Zone Euro-Zone GDP s.a. (QoQ)
% Change
2Q A
0.40
0.40
11:30AM Germany GDP nsa (YoY)
% Change
2Q P
1.10
1.60
August 18, 2015
6:00PM US
Building permits
Thousands
Jul
1,337.00
1,217.00
6:00PM US
Housing Starts
Thousands
Jul
1,174.00
1,180.00
2:00PM UK
CPI (YoY)
% Change
Jul
--
--
August 19, 2015
6:00PM US
Consumer price index (mom)
% Change
Jul
0.30
0.20
August 20, 2015
7:30PM US
Existing home sales
Million
Jul
5.49
5.41
August 21, 2015
7:30PM Euro Zone Euro-Zone Consumer Confidence
Value
Aug A
(7.10)
--
August 24, 2015
1:00PM Germany PMI Services
Value
Aug P
53.80
--
1:00PM Germany PMI Manufacturing
Value
Aug P
51.80
--
August 25, 2015
7:30PM US
New home sales
Thousands
Jul
482.00
--
7:30PM US
Consumer Confidence
S.A./ 1985=100
Aug
90.91
--
August 27, 2015
6:00PM US
GDP Qoq (Annualised)
% Change
2Q S
2.30
--
August 28, 2015
2:00PM UK
GDP (YoY)
% Change
2Q P
2.60
--
September 1, 2015
1:25PM Germany Unemployment change (000's)
Thousands
Aug
9.00
--
6:30AM China PMI Manufacturing
Value
Aug
50.00
--
2:00PM UK
PMI Manufacturing
Value
Aug
51.90
--
Source: Bloomberg, Angel Research
Market Outlook
August 13, 2015
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
9.0
8.4
6.0
5.2
4.8
5.0
8.0
7.5
7.5
3.6
4.0
3.4
7.0
2.8
2.7
6.7
6.7
6.6
2.6
2.5
7.0
6.3
6.4
3.0
2.0
0.9
6.0
0.5
1.0
5.0
4.7
-
5.0
4.5
(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
(%)
55.0
Mfg. PMI
Services PMI
8.0
7.4
54.0
7.0
6.8
7.0
53.0
5.6
5.2
5.4
5.3
6.0
4.9
5.0
52.0
4.6
5.0
4.3
51.0
4.0
3.3
3.0
50.0
2.0
49.0
1.0
48.0
-
47.0
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
(10.0)
5.00
(20.0)
4.00
(30.0)
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
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Market Outlook
August 13, 2015
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
7.0
5.6
6.0
5.3
4.7
4.0
3.0
2.6
2.1
2.3
2.0
1.1
0.8
(1.6)
(2.2)
(0.9)
-
(2.0)
(4.0)
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
6.0
5.2
4.8
3.7
4.0
3.1
2.7
2.0
1.6
2.0
1.2
1.0
(1.0)
(3.8)
-
(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: Bloomberg, Angel Research
www.angelbroking.com
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Market Outlook
August 13, 2015
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
48,388
(4.1)
(12.4)
(11.7)
Russia
Micex
1,698
3.8
(2.3)
23.4
India
Nifty
8,349
0.9
4.8
10.8
China
Shanghai Composite
3,886
6.1
(11.5)
70.6
South Africa
Top 40
44,980
5.8
(0.6)
2.2
Mexico
Mexbol
44,032
(0.2)
(0.5)
1.1
Indonesia
LQ45
752
(4.0)
(6.2)
(7.2)
Malaysia
KLCI
1,610
(1.9)
(7.0)
(10.4)
Thailand
SET 50
919
(3.2)
(6.8)
(9.4)
USA
Dow Jones
17,403
(2.0)
(2.4)
6.4
UK
FTSE
6,571
4.9
(2.0)
2.7
Japan
Nikkei
20,393
1.2
6.4
31.8
Germany
DAX
10,925
8.5
1.6
26.9
France
CAC
4,925
12.8
2.0
24.7
Source: Bloomberg, Angel Research
www.angelbroking.com
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Market Outlook
August 13, 2015
Stock Watch
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
222
-
4,316
2,075
2,394
14.4
14.4
9.5
11.0
23.4
20.2
4.6
4.0
21.1
21.3
2.1
1.8
United Phosphorus
Neutral
544
-
23,331
13,698
15,752
17.6
17.6
32.1
38.5
17.0
14.1
3.3
2.8
21.4
21.3
1.8
1.5
Auto & Auto Ancillary
Ashok Leyland
Neutral
88
-
25,115
17,394
20,318
9.6
10.7
2.8
4.4
31.5
20.1
4.4
4.1
14.3
20.4
1.4
1.2
Bajaj Auto
Neutral
2,462
-
71,245
23,842
27,264
19.8
19.6
128.4
144.4
19.2
17.1
5.9
5.0
30.5
29.5
2.6
2.2
Eicher Motors
Accumulate
19,849
21,843
53,875
11,681
15,550
15.3
16.9
358.5
564.3
55.4
35.2
16.6
12.4
29.8
34.9
4.5
3.3
Hero Motocorp
Neutral
2,635
-
52,625
28,500
33,028
13.8
14.1
144.2
166.3
18.3
15.9
6.7
5.7
36.7
36.0
1.7
1.4
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 Buy
1,298
1,493
80,605
40,088
45,176
13.8
14.0
59.6
70.4
21.8
18.4
3.6
3.2
16.6
17.2
1.7
1.4
Maruti
Accumulate
4,444
4,735
134,252
58,102
68,587
16.7
16.9
182.0
225.5
24.4
19.7
4.9
4.1
19.9
21.0
2.1
1.7
Minda Industries
Accumulate
588
652
933
2,567
2,965
7.3
8.0
38.8
54.3
15.2
10.8
2.2
1.8
14.4
16.8
0.5
0.4
Rane Brake Lining
Buy
314
366
249
454
511
11.1
11.4
23.8
28.1
13.2
11.2
1.9
1.7
14.2
15.3
0.7
0.6
Setco Automotive
Buy
241
286
645
718
862
13.3
14.3
13.4
19.0
18.0
12.7
2.8
2.4
15.4
18.5
1.2
1.0
Tata Motors
Buy
355
455
102,582
267,464
311,225
13.7
13.7
34.6
41.8
10.3
8.5
1.3
1.1
13.2
13.9
0.6
0.5
TVS Motor
Accumulate
223
255
10,616
11,839
13,985
7.0
8.0
10.8
15.9
20.7
14.1
5.3
4.2
25.5
29.7
0.9
0.7
Amara Raja Batteries
Neutral
911
-
15,560
5,355
6,641
17.4
17.8
31.8
40.9
28.7
22.3
7.2
5.7
25.2
25.5
2.9
2.3
Exide Industries
Neutral
158
-
13,422
7,363
8,247
13.7
14.5
6.6
7.7
23.9
20.5
3.0
2.7
12.6
13.3
1.6
1.4
Apollo Tyres
Neutral
188
-
9,544
12,428
13,262
16.8
16.4
21.9
21.1
8.6
8.9
1.5
1.3
17.0
14.1
0.8
0.9
Ceat
Accumulate
969
1,059
3,919
6,041
6,770
14.3
13.9
101.5
117.7
9.5
8.2
1.9
1.6
20.0
19.2
0.8
0.7
JK Tyres
Buy
102
147
2,317
7,446
7,942
15.2
14.7
19.6
21.0
5.2
4.9
1.3
1.1
25.2
21.7
0.7
0.6
Swaraj Engines
Neutral
963
-
1,196
593
677
14.5
14.8
51.2
60.8
18.8
15.8
4.4
3.9
23.3
24.8
1.9
1.6
Subros
Neutral
90
-
538
1,268
1,488
11.6
11.9
3.7
6.6
24.3
13.6
1.6
1.5
6.8
11.4
0.7
0.6
Indag Rubber
Buy
200
247
525
283
329
17.0
17.2
13.0
15.4
15.4
13.0
3.4
2.8
21.8
21.6
1.6
1.3
Capital Goods
ACE
Buy
46
54
453
660
839
4.7
8.2
1.0
3.9
45.8
11.7
1.4
1.3
3.2
11.3
0.8
0.7
BEML
Buy
1,381
1,607
5,750
3,277
4,006
6.0
8.9
29.2
64.3
47.3
21.5
2.6
2.4
5.7
11.7
1.8
1.5
BGR Energy
Neutral
133
-
959
3,615
3,181
9.5
9.4
16.7
12.4
8.0
10.7
0.8
0.7
10.0
7.0
0.7
0.8
BHEL
Neutral
260
-
63,576
33,722
35,272
10.8
11.7
10.5
14.2
24.7
18.3
1.8
1.7
7.0
9.0
2.0
1.9
Blue Star
Accumulate
367
387
3,305
3,649
4,209
5.0
5.9
9.2
14.7
40.2
25.0
7.3
6.8
9.1
17.5
1.0
0.9
Crompton Greaves
Accumulate
182
204
11,426
13,484
14,687
4.9
6.2
4.5
7.1
40.5
25.7
2.9
2.7
7.2
10.8
1.0
0.9
Inox Wind
Buy
391
505
8,686
4,980
5,943
17.0
17.5
26.6
31.6
14.7
12.4
4.4
3.2
35.0
30.0
1.9
1.5
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Market Outlook
August 13, 2015
Stock Watch
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
146
-
3,748
8,791
9,716
6.1
6.8
5.4
8.2
27.0
17.8
2.7
2.5
10.0
14.0
0.6
0.6
Thermax
Neutral
1,012
-
12,056
6,413
7,525
7.4
8.5
30.5
39.3
33.2
25.7
5.1
4.4
15.0
17.0
1.9
1.5
Cement
ACC
Accumulate
1,365
1,548
25,635
11,856
14,092
14.5
17.8
47.6
76.1
28.7
17.9
3.0
2.7
10.6
15.7
2.0
1.6
Ambuja Cements
Neutral
223
-
34,592
10,569
12,022
20.7
22.2
8.7
10.7
25.6
20.8
3.3
3.1
13.0
15.2
2.9
2.5
India Cements
Buy
83
132
2,560
4,716
5,133
14.9
15.8
1.0
4.5
83.4
18.5
0.9
0.8
1.0
4.5
0.9
0.8
JK Cement
Buy
624
767
4,360
4,056
4,748
14.5
17.0
22.6
41.1
27.6
15.2
2.5
2.2
9.3
15.3
1.5
1.3
J K Lakshmi Cement
Buy
348
443
4,091
3,004
3,618
17.6
19.9
13.9
27.2
25.0
12.8
2.8
2.4
11.8
20.5
1.8
1.4
Mangalam Cements
Buy
229
349
611
1,111
1,336
12.2
15.1
16.3
34.6
14.1
6.6
1.1
1.0
8.2
16.0
0.8
0.6
Orient Cement
Accumulate
168
183
3,439
1,854
2,524
21.2
22.2
7.7
11.1
21.8
15.1
3.1
2.7
13.3
15.7
2.6
1.8
Ramco Cements
Neutral
338
-
8,058
4,036
4,545
20.8
21.3
15.1
18.8
22.4
18.0
2.7
2.4
12.9
14.3
2.5
2.2
Shree Cement^
Neutral
10,952
-
38,154
7,150
8,742
26.7
28.6
228.0
345.5
48.0
31.7
7.1
5.9
15.7
20.3
5.1
4.1
UltraTech Cement
Accumulate
3,067
3,282
84,157
27,562
31,548
20.4
22.3
111.9
143.3
27.4
21.4
3.9
3.4
15.2
16.8
3.1
2.7
Construction
ITNL
Neutral
128
-
3,158
7,589
8,021
34.0
35.9
16.0
19.0
8.0
6.7
0.5
0.5
6.5
6.7
3.5
3.7
KNR Constructions
Accumulate
562
582
1,486
915
1,479
14.3
13.9
20.3
37.2
27.7
15.1
2.5
2.2
9.6
15.6
1.7
1.1
Larsen & Toubro
Accumulate
1,763
2,013
164,008
68,920
82,446
10.9
11.5
57.0
73.0
30.9
24.1
2.8
2.6
13.6
15.5
2.6
2.2
Gujarat Pipavav Port
Neutral
210
-
10,133
793
694
53.0
50.9
9.0
8.0
23.3
26.2
5.1
4.1
25.9
18.4
12.4
14.1
MBL Infrastructures
Buy
251
395
1,042
2,507
2,986
12.4
14.4
21.5
20.5
11.7
12.3
1.4
1.3
12.6
12.7
1.2
1.1
PNC Infratech
Accumulate
445
445
2,285
1,719
2,003
13.0
13.5
21.0
28.0
21.2
15.9
1.8
1.6
11.0
10.9
1.4
1.2
Financials
Allahabad Bank
Neutral
87
-
4,980
8,859
9,817
3.0
3.0
23.7
30.1
3.7
2.9
0.4
0.4
10.6
12.3
-
-
Axis Bank
Buy
558
716
132,591
26,522
31,625
3.6
3.6
36.2
45.4
15.4
12.3
3.0
2.6
18.2
19.6
-
-
Bank of Baroda
Neutral
176
-
38,922
18,934
21,374
2.0
2.0
13.2
15.1
13.3
11.7
1.0
0.9
7.1
7.7
-
-
Bank of India
Neutral
158
-
10,512
17,402
20,003
2.0
2.1
40.3
50.7
3.9
3.1
0.4
0.3
9.0
10.4
-
-
Canara Bank
Neutral
294
-
15,142
15,805
17,745
2.0
2.2
64.3
73.5
4.6
4.0
0.5
0.5
10.8
11.3
-
-
Dena Bank
Neutral
44
-
2,466
3,580
4,040
2.1
2.2
8.4
10.9
5.3
4.0
0.5
0.4
6.8
8.4
-
-
Federal Bank
Neutral
65
-
11,164
3,522
4,045
3.2
3.2
12.2
14.1
5.3
4.6
0.7
0.6
12.9
13.4
-
-
HDFC
Accumulate
1,261
1,343
198,774
11,198
13,321
3.5
3.5
45.1
53.7
28.0
23.5
5.8
5.2
27.2
28.2
-
-
HDFC Bank
Buy
1,070
1,255
268,971
38,629
47,500
4.5
4.7
52.6
66.4
20.3
16.1
3.7
3.2
19.6
21.2
-
-
ICICI Bank
Buy
292
370
169,360
36,037
41,647
3.5
3.6
22.9
26.7
12.7
10.9
2.1
1.9
15.7
15.9
-
-
IDBI Bank
Neutral
62
-
9,993
9,806
11,371
1.7
1.9
10.0
16.3
6.3
3.8
0.5
0.4
6.8
10.4
-
-
www.angelbroking.com
Market Outlook
August 13, 2015
Stock Watch
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
Indian Bank
Neutral
145
-
6,952
6,454
7,321
2.5
2.6
26.4
33.3
5.5
4.3
0.5
0.4
8.1
9.6
-
-
LIC Housing Finance
Buy
479
590
24,161
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
162
-
4,853
7,930
8,852
2.5
2.5
51.8
57.1
3.1
2.8
0.4
0.3
9.3
9.5
-
-
Punjab Natl.Bank
Neutral
153
-
28,347
24,160
27,777
2.9
3.0
18.5
24.6
8.3
6.2
0.8
0.7
8.8
10.8
-
-
South Ind.Bank
Neutral
23
-
3,072
1,999
2,249
2.4
2.4
3.5
4.0
6.6
5.7
0.8
0.7
12.6
13.1
-
-
St Bk of India
Accumulate
256
285
194,036
86,900
100,550
3.1
3.1
22.1
27.7
11.6
9.3
1.4
1.3
12.7
14.3
-
-
Union Bank
Neutral
197
-
12,496
12,995
14,782
2.4
2.4
32.3
40.9
6.1
4.8
0.7
0.6
10.7
12.3
-
-
Vijaya Bank
Neutral
39
-
3,312
3,474
3,932
1.8
1.9
5.9
7.2
6.6
5.4
0.6
0.5
8.1
9.3
-
-
Yes Bank
Buy
770
989
32,209
7,006
8,825
3.1
3.3
61.4
77.1
12.6
10.0
2.3
2.0
20.1
21.3
-
-
FMCG
Asian Paints
Neutral
871
-
83,546
16,553
19,160
16.0
16.2
17.7
21.5
49.3
40.5
13.1
11.8
29.4
31.2
4.9
4.2
Britannia
Neutral
3,317
-
39,798
8,065
9,395
9.6
10.2
47.2
65.5
70.3
50.6
23.4
22.1
38.3
41.2
4.8
4.1
Colgate
Neutral
1,990
-
27,056
4,836
5,490
19.5
19.7
48.5
53.2
41.0
37.4
30.1
26.2
99.8
97.5
5.5
4.8
Dabur India
Neutral
298
-
52,353
9,370
10,265
17.1
17.2
7.3
8.1
40.6
36.8
12.3
10.0
33.7
30.6
5.5
5.0
GlaxoSmith Con*
Neutral
6,311
-
26,541
4,919
5,742
17.2
17.4
168.3
191.2
37.5
33.0
10.6
9.1
28.8
28.9
5.0
4.2
Godrej Consumer
Neutral
1,353
-
46,066
10,168
12,886
16.1
16.1
32.1
38.4
42.2
35.2
8.6
7.9
19.7
21.0
4.6
3.6
HUL
Neutral
866
-
187,365
34,940
38,957
17.5
17.7
20.8
24.7
41.6
35.1
46.3
37.0
110.5
114.2
5.2
4.6
ITC
Buy
317
409
254,113
41,068
45,068
37.8
37.4
13.9
15.9
22.8
19.9
7.6
6.7
34.1
33.8
5.8
5.3
Marico
Neutral
425
-
27,426
6,551
7,766
15.7
16.0
10.4
12.5
41.0
34.0
11.9
9.9
33.2
32.4
4.1
3.5
Nestle*
Accumulate
6,185
6,646
59,630
11,291
12,847
22.2
22.3
158.9
184.6
38.9
33.5
20.3
18.3
55.0
57.3
5.1
4.5
Tata Global
Accumulate
133
152
8,390
8,635
9,072
9.8
9.9
6.5
7.6
20.5
17.5
2.0
2.0
6.8
7.4
0.9
0.9
IT
HCL Tech^
Buy
970
1,132
136,366
42,038
47,503
23.5
23.5
56.4
62.9
17.2
15.4
4.0
3.1
23.2
19.8
2.8
2.3
Infosys
Accumulate
1,142
1,306
262,254
60,250
66,999
28.0
28.0
58.3
63.7
19.6
17.9
4.1
3.5
20.9
19.7
3.7
3.1
TCS
Buy
2,671
3,168
523,255
108,420
123,559
28.8
28.7
127.2
143.9
21.0
18.6
8.4
7.8
39.9
41.8
4.4
3.8
Tech Mahindra
Buy
557
646
53,538
25,566
28,890
16.0
17.0
26.3
31.9
21.2
17.5
3.8
3.2
17.9
18.6
1.9
1.6
Wipro
Buy
576
719
142,284
52,414
58,704
23.7
23.8
38.4
42.3
15.0
13.6
2.9
2.6
19.5
18.0
2.3
1.9
Media
D B Corp
Accumulate
325
356
5,977
2,241
2,495
27.8
27.9
21.8
25.6
15.0
12.7
3.9
3.4
26.7
28.5
2.6
2.3
HT Media
Neutral
85
-
1,980
2,495
2,603
11.2
11.2
7.3
8.6
11.7
9.9
0.9
0.8
7.4
8.1
0.3
0.3
Jagran Prakashan
Accumulate
139
156
4,528
1,939
2,122
26.0
26.0
8.3
9.2
16.7
15.1
2.9
2.6
17.5
17.1
2.3
2.1
Sun TV Network
Neutral
327
-
12,900
2,779
3,196
70.2
70.5
22.8
27.3
14.4
12.0
3.5
3.2
26.7
28.3
4.4
3.8
www.angelbroking.com
Market Outlook
August 13, 2015
Stock Watch
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
Hindustan Media
Buy
233
292
1,710
920
1,031
20.0
20.0
19.2
20.9
12.1
11.2
2.0
1.7
16.4
15.3
1.4
1.2
Ventures
Metals & Mining
Coal India
Buy
371
450
234,621
77,595
89,628
22.9
24.4
27.6
30.0
13.5
12.4
5.8
5.8
33.9
33.2
2.3
2.0
Hind. Zinc
Neutral
147
-
61,985
15,546
16,821
47.5
49.0
19.7
20.3
7.4
7.2
1.3
1.1
17.2
16.6
1.7
1.3
Hindalco
Neutral
96
-
19,803
112,328
119,817
7.7
7.9
16.3
20.1
5.9
4.8
0.4
0.4
8.0
8.5
0.6
0.6
JSW Steel
Neutral
878
-
21,221
48,125
53,595
18.8
21.0
46.9
97.5
18.7
9.0
0.9
0.8
4.4
9.5
1.3
1.1
NMDC
Neutral
100
-
39,608
12,544
13,330
59.5
59.7
16.3
16.5
6.1
6.1
1.1
1.0
5.1
9.9
1.9
1.9
SAIL
Neutral
58
-
24,016
56,365
63,383
6.9
8.0
7.1
8.2
8.2
7.1
0.5
0.5
7.0
7.1
1.0
0.9
Vedanta
Neutral
114
-
33,753
81,842
88,430
30.6
32.8
20.2
25.7
5.7
4.4
0.4
0.4
7.5
8.5
0.8
0.6
Tata Steel
Neutral
249
-
24,193
136,805
149,228
11.3
11.9
26.4
36.8
9.4
6.8
0.8
0.7
6.0
8.0
0.7
0.7
Oil & Gas
Cairn India
Neutral
155
-
29,060
12,617
14,513
33.7
40.0
25.5
27.7
6.1
5.6
0.5
0.4
7.4
7.7
1.0
0.8
GAIL
Neutral
338
-
42,913
75,595
85,554
8.6
8.0
31.8
36.1
10.6
9.4
1.2
1.1
10.7
11.4
0.7
0.6
ONGC
Neutral
269
-
230,228
174,773
192,517
22.7
24.8
34.6
38.2
7.8
7.0
1.1
1.0
14.2
14.9
1.4
1.2
Petronet LNG
Accumulate
189
210
14,194
39,007
40,785
3.8
4.2
9.2
11.0
20.7
17.3
2.3
2.1
11.6
12.7
0.4
0.4
Reliance Industries
Accumulate
943
1,050
305,373
339,083
384,014
7.8
9.5
75.7
94.5
12.5
10.0
1.2
1.2
10.7
12.2
1.2
1.1
Pharmaceuticals
Alembic Pharma
Neutral
670
-
12,627
2,601
3,115
21.2
20.2
20.8
23.9
32.2
28.0
10.3
7.8
37.2
31.8
4.9
4.0
Aurobindo Pharma
Accumulate
744
824
43,459
14,435
16,600
22.6
22.6
36.1
41.2
20.6
18.1
6.1
4.7
34.5
29.3
3.4
2.9
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
2,017
-
41,304
10,224
11,840
19.7
20.0
69.8
81.0
28.9
24.9
7.7
6.1
26.8
25.3
4.1
3.5
Cipla
Neutral
707
-
56,775
14,051
16,515
18.9
18.7
25.1
28.9
28.2
24.5
4.5
3.9
17.2
16.9
4.0
3.4
Dr Reddy's
Neutral
4,277
-
72,912
17,903
20,842
22.7
22.8
160.5
189.5
26.7
22.6
5.4
4.5
22.2
21.7
4.0
3.4
Dishman Pharma
Buy
203
285
1,642
1,716
1,888
20.2
20.2
16.3
21.6
12.5
9.4
1.2
1.0
9.7
11.7
1.1
0.9
GSK Pharma*
Neutral
3,604
-
30,523
2,870
3,158
20.0
22.1
59.5
68.3
60.6
52.8
17.9
18.4
28.5
34.3
10.1
9.3
Indoco Remedies
Neutral
349
-
3,217
1,088
1,262
18.2
18.2
13.1
15.5
26.7
22.5
5.2
4.4
21.2
21.1
3.0
2.6
Ipca labs
Neutral
769
-
9,707
3,507
4,078
17.6
18.6
25.8
32.0
29.8
24.0
3.9
3.3
13.8
14.9
3.0
2.6
Lupin
Neutral
1,719
-
77,327
14,864
17,244
26.9
26.9
62.1
71.1
27.7
24.2
6.7
5.3
27.4
24.6
4.9
4.1
Sun Pharma
Accumulate
866
950
208,458
27,839
33,542
27.7
29.7
18.9
26.9
45.8
32.2
4.1
3.6
13.0
14.6
6.9
5.4
Power
Tata Power
Neutral
68
-
18,270
38,302
38,404
14.1
13.1
5.1
6.0
13.2
11.3
1.3
1.2
9.2
10.3
1.4
1.3
NTPC
Buy
128
157
105,501
87,064
98,846
23.5
23.5
11.7
13.2
10.9
9.7
1.2
1.1
11.4
12.1
2.2
2.0
Power Grid
Buy
136
170
71,045
20,702
23,361
86.7
86.4
12.1
13.2
11.2
10.3
1.7
1.5
15.6
15.1
8.4
7.8
www.angelbroking.com
Market Outlook
August 13, 2015
Stock Watch
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
Telecom
Bharti Airtel
Neutral
398
-
158,977
101,748
109,191
32.1
31.7
12.0
12.5
33.1
31.8
2.3
2.1
6.9
6.7
2.2
2.0
Idea Cellular
Accumulate
162
171
58,173
34,282
36,941
32.0
31.5
5.9
6.2
27.4
26.1
2.5
2.3
9.9
9.3
2.3
2.1
zOthers
Abbott India
Neutral
4,520
-
9,605
2,713
3,141
13.7
13.5
127.8
145.7
35.4
31.0
8.3
6.7
25.9
23.9
3.3
2.7
Bajaj Electricals
Buy
267
341
2,688
4,719
5,287
5.2
5.8
8.6
12.7
31.2
21.1
3.6
3.1
11.4
14.8
0.6
0.5
Finolex Cables
Neutral
259
-
3,958
2,728
3,036
10.8
11.0
14.4
16.8
18.0
15.5
2.7
2.4
15.2
15.3
1.2
1.0
Goodyear India*
Neutral
582
-
1,343
1,536
1,683
9.6
10.0
41.8
48.0
13.9
12.1
2.4
2.1
18.2
18.3
0.6
0.5
Hitachi
Neutral
1,362
-
3,703
1,806
2,112
9.0
9.2
28.6
29.1
47.6
46.8
11.8
9.6
28.1
22.6
2.1
1.8
Jyothy Laboratories
Neutral
317
-
5,742
1,620
1,847
11.5
11.5
7.3
8.5
43.5
37.4
5.6
5.2
13.3
14.4
3.4
2.9
MRF
Neutral
41,523
-
17,610
20,727
14,841
19.3
18.6
4,905.8
3,351.9
8.5
12.4
2.7
2.2
37.6
19.6
0.8
1.1
Page Industries
Neutral
14,694
-
16,390
1,929
2,450
19.8
20.1
229.9
299.0
63.9
49.2
28.2
19.6
52.1
47.1
8.5
6.7
Relaxo Footwears
Neutral
546
-
6,557
1,767
2,152
12.3
12.5
19.3
25.1
28.4
21.8
7.0
5.4
27.7
27.8
3.8
3.1
Siyaram Silk Mills
Accumulate
1,105
1,221
1,036
1,653
1,873
11.7
12.2
99.3
122.1
11.1
9.1
2.0
1.7
19.5
20.2
0.8
0.7
Styrolution ABS India*
Neutral
824
-
1,450
1,271
1,440
8.6
9.2
32.0
41.1
25.7
20.1
2.6
2.4
10.7
12.4
1.1
1.0
Tree House
Accumulate
392
433
1,658
259
324
56.8
56.8
17.0
21.7
23.0
18.1
2.3
2.1
10.1
11.5
6.3
5.2
TVS Srichakra
Neutral
2,741
-
2,098
2,112
2,389
11.9
12.1
168.5
202.5
16.3
13.5
5.6
4.2
39.6
35.5
1.1
0.9
HSIL
Buy
278
434
2,007
2,085
2,436
18.5
18.6
21.7
28.9
12.8
9.6
1.3
1.2
10.0
12.1
1.1
0.9
Kirloskar Engines India
Accumulate
280
297
4,052
2,634
3,252
10.1
12.0
10.9
17.4
25.7
16.1
2.9
2.6
11.4
16.8
1.2
0.9
Ltd
M M Forgings
Buy
659
797
796
563
671
22.1
22.9
51.0
66.5
12.9
9.9
2.7
2.1
23.1
24.1
1.6
1.3
Banco Products (India)
Neutral
128
-
913
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
179
-
110
1,007
1,114
3.1
3.1
23.7
28.2
7.6
6.3
1.1
0.9
13.9
14.6
0.1
0.1
Nilkamal
Neutral
1,034
-
1,543
1,948
2,147
10.6
10.3
60.0
67.0
17.2
15.4
2.7
2.3
16.8
16.1
0.8
0.7
Visaka Industries
Neutral
160
-
254
1,158
1,272
8.6
9.5
23.7
32.7
6.8
4.9
0.7
0.6
10.1
12.5
0.4
0.3
Transport Corporation of
Accumulate
270
293
2,045
2,830
3,350
8.8
9.0
14.4
18.3
18.8
14.8
2.9
2.5
15.4
17.1
0.8
0.7
India
Elecon Engineering
Accumulate
82
87
894
1,452
1,596
13.7
14.7
4.2
6.2
19.8
13.2
1.6
1.4
8.1
11.2
0.9
0.8
Surya Roshni
Buy
138
193
605
2,992
3,223
8.4
8.7
15.2
19.3
9.1
7.2
0.9
0.8
10.1
11.5
0.5
0.5
MT Educare
Accumulate
124
141
495
275
355
18.3
17.3
7.4
8.8
16.8
14.1
3.4
3.0
20.2
21.1
1.7
1.3
Radico Khaitan
Buy
95
112
1,264
1,565
1,687
11.9
12.4
5.4
6.6
17.6
14.4
1.4
1.3
8.0
9.0
1.3
1.3
Garware Wall Ropes
Buy
298
390
652
875
983
10.4
10.6
23.1
27.8
12.9
10.7
1.8
1.6
14.1
14.8
0.8
0.7
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 12, 2015
www.angelbroking.com
Market Outlook
August 13, 2015
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and MCX Stock Exchange Limited. It is also registered as a Depository Participant with CDSL and
Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a registered
entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number INH000000164.
Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities
Market. Angel or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in
the company covered by Analyst. Angel or its associates/analyst has not received any compensation / managed or co-managed public
offering of securities of the company covered by Analyst during the past twelve months. Angel/analyst has not served as an officer,
director or employee of company covered by Analyst and has not been engaged in market making activity of the company covered by
Analyst.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
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