Market Outlook
April 20, 2016
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
BSE Sensex
0.7
190
25,816
Indian markets are expected to open flat tracking SGX Nifty.
Nifty
0.8
64
7,915
U.S. stocks closed mixed on Tuesday, amid a rise in oil prices, as declines in the
Mid Cap
1.3
137
11,053
Tech and Consumer Discretionary stocks weighed after mixed earnings reports. S&P
Small Cap
1.1
121
11,064
500 and Dow Jones closed at their highest levels of the year so far, and about 1.6%
below their 52-week intraday highs. Nasdaq composite underperformed, closing
Bankex
(0.5)
(96)
18,446
0.4% lower as Netflix plunged nearly 13% and Illumina plunged 23%.
European indexes closed higher, as a sharp tick-up in oil prices and commodity
Global Indices
Chg (%)
(Pts)
(Close)
stocks boosted sentiment, along with encouraging set of corporate updates. After
Dow Jones
0.3
49
18,054
hitting a 4-month high, FTSE 100 closed 0.8% up, lifted by outperformance of U.K.
Nasdaq
(0.4)
(20)
4,940
listed mining stocks.
FTSE
0.8
52
6,405
Indian indices rose for 4th consecutive session on Monday as investors cheered tech
Nikkei
3.7
599
16,874
firm Infosys' upbeat revenue forecast and its 3rd successive estimate-beating earnings
Hang Seng
1.3
274
21,436
(Indian markets were closed on Tuesday for holiday). Broader markets continued to
Shanghai Com
0.3
9
3,042
outperform benchmarks with BSE Midcap and Smallcap indices rising around a
percent each but the market breadth was slightly positive.
Advances / Declines
BSE
NSE
News & Result Analysis
Advances
1,447
1,029
India’s trade deficit narrows down to 5-yr low
Declines
1,187
524
HPCL plans $3.8bn refinery investment to lift capacity by 2/3rd
Result Review: TCS, LIC Housing
Unchanged
146
86
Result Preview: Wipro
Detailed analysis on Pg2
Volumes (` Cr)
Investor’s Ready Reckoner
BSE
2,223
NSE
18,723
Key Domestic & Global Indicators
Stock Watch: Latest investment recommendations on 150+ stocks
Net Inflows (` Cr)
Net
Mtd
Ytd
Refer Pg7 onwards
FII
741
252
(11,729)
Top Picks
MFs
(63)
(414)
61,145
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
Amara Raja
Auto & Auto Ancillary
Buy
938
1,040
10.9
Top Gainers
Price (`)
Chg (%)
HCL Tech
IT
Buy
853
1,038
21.6
Oberoirlty
280
17.7
LIC Housing
Financials
Buy
485
592
21.9
Sobha
317
15.5
Bharat Electronics
Capital Goods
Buy
1,206
1,414
17.2
Nationalum
45
9.7
Navkar Corporation Others
Buy
194
265
36.5
Cyient
484
6.6
More Top Picks on Pg6
Godrejprop
344
6.6
Key Upcoming Events
Previous
Consensus
Date
Region
Event Description
Top Losers
Price (`)
Chg (%)
Reading
Expectations
Apr 20 US
Existing Home Sales (Mar)
5.08M
5.29M
Cairn
149
(3.7)
Apr 20 US
Crude Oil Inventories
6.634M
-
Trent
1,641
(2.9)
Apr 21 GBP
Retail Sales (MoM) (Mar)
-0.4%
-0.2%
Aban
183
(2.8)
Apr 21 US
Philadelphia Fed Man. Index (Apr)
12.4
8.9
Bankbaroda
148
(2.8)
6.(
6.(
More Events on Pg7
Heromotoco
3,065
(2.7)
As on April 18, 2016
Market Outlook
April 20, 2016
India’s trade deficit narrows down to 5-yr low
As per data released by Ministry of Commerce & Industry, India's trade deficit
narrowed for 3rd straight month in March to $5.07bn, as gold imports were down
80.48% to $973mn. Led by slow pace of global recovery, soften commodity prices
and weak demand scenario, India's exports for FY2016 were at their lowest since
FY2011. Exports added up to $261.1bn in FY2016, down 15.85% from $310bn
in 2014-15. For the same time period, imports too registered 15.28% decline to
$379.5bn. Trade deficit for FY2016 stood at $118.5bn, compared with $137.7bn
in previous financial year.
Shipments of petroleum products shrank 21.43% to $2.07bn in March, while that
of Engineering Goods declined 11.29% to $5.34bn. Import of Electronic Goods
increased 19% to $3.7bn in March, while silver imports declined 62.42% to
$210.94mn during the month.
Full year oil imports were down 40%, while non-oil imports fell 4.12%. Exports
continued to decline for 16th month on yoy basis, reflecting (1) sharp decline in
gold imports following post budget indefinite strike by the jewelers, & (2) decline in
net oil imports on account of fall in prices as well as volumes.
The trend of falling exports is in tandem with other major world economies. Export
growth has fallen for United States (10.81%), European Union (7.40%), China
(11.37%) and Japan (12.85%) for January-2016 over corresponding period of the
previous year, as per World Trade Organization statistics.
As per the professional forecasters’ projection released by RBI earlier this month,
India’s merchandise exports and imports are expected to grow 1.7% and 4.4%,
respectively, in 2016-17. World Trade Organization (WTO) has projected growth
in the volume of global trade to remain sluggish in 2016 at 2.8%, same as in
2015. While import of developed countries are estimated to moderate this year,
demand for imported goods in developing Asian economies is expected to pick-
up.
HPCL plans $3.8bn refinery investment to lift capacity by 2/3rd
Hindustan Petroleum Corp Ltd. (HPCL) announced plans to invest ~$3.8bn to
ramp-up its refining capacity by 2/3rd this decade, as country's oil demand soars.
India, world's 3rd biggest oil consumer is experiencing fastest increase in oil
demand, buoyed by PM’s manufacturing push and expanding middle class which
is buying more cars.
HPCL aims to raise its capacity to process ~500,000 barrels per day (bpd) of
crude by investing ~`250bn ($3.76bn). HPCL aims to boost the capacity of its
Mumbai refinery to 190,000 bpd by July 2019 from 130,000 bpd, while the Vizag
refinery in India's south will ramp up to 300,000 bpd from 166,000 bpd by July
2020. Company management has highlighted that they will de-bottleneck the
capacity of 2 CDUs (Crude Distillation Units) at Mumbai and replace 46,000 bpd
CDU at Vizag with new 180,000 bpd crude units. Alongside the expansion, HPCL
will also revamp its gasoline and diesel production units to meet the rules on
producing cleaner fuels from 2020.
Market Outlook
April 20, 2016
HPCL which traditionally relies on Middle Eastern crude has for the first time
signed a term contract with Nigeria's national oil company, NNPC, to buy 32,000
bpd of oil this fiscal year ending March 31. Since HPCL does not process all the
grades offered by NNPC, it entered into swap agreement with Vitol. HPCL, which
halted Iranian oil imports in 2012 after western sanctions, is now looking to buy
20,000 bpd from Iran. HPCL is also considering using Iranian oil to replace some
of Basra crude it buys under an optional contract with Iraq's oil marketing firm,
SOMO, and Total. HPCL also has an annual deal to buy 65,000 bpd of Basra
from SOMO and about 25,000 bpd of Basra and UAE's Murban oil from Total
with an option to raise quantities.
HPCL has also renewed its contract to buy 50,000 bpd from Saudi Arabia and
20,000 bpd from Abu Dhabi National Oil Co (ADNOC), adding it also has an
optional contract to buy 20,000 bpd from Kuwait.
Results Review
TCS (CMP: `2,522/ TP: `2,854 / Upside: 13.2%)
TCS announced its 4QFY2016 results. The company, posted revenue of
US$4,207mn V/s US$4,215mn expected with 1.5% qoq growth, mostly volume
led, which came in at 3.2% QoQ. In Constant Currency Terms (CC) the company
posted a QoQ growth of 2.1%. In rupee terms, revenues grew by 4.0% qoq to
`28,448cr V/s `28,454cr expected, lead by rupee deprecation.
In terms of geography, the company posted a CC growth of 2.4% in USA, 1.8% in
Latin America, UK a dip of 0.4%, continental Europe growth of 3.6%, India a
growth of 2.2%, Asia Pacific a growth of 1.1% and MEA a growth of 9.5%. In terms
of vertical, the company posted a CC growth of 3.2% in BSFI, Retail & Distribution
a growth of 2.1%, manufacturing a growth of 3.9%, Telecom a growth of 1.3%,
Energy & Utilities a growth of 3.0%.
In terms of EBIT margins, the company posted a 26.1% V/s 26.7% expected. PAT
came in at `6,341cr V/s `6,201cr expected, up 3.8% qoq sequentially. The better
than expected net profit came in on back of higher than expected other income.
On the operating matrix, the attrition was 14.7% in IT services. In terms of client
additions, the clients in $100M+ revenue band increased by 3, in $50M+ revenue
band by 8 and in $10M+ revenue band by 17.
Going into FY2017, the company expects a stronger year, than FY2016, where it
clocked a CC growth of 11.9%. The key headwinds in industries like Energy and
BFSI segment has bottomed out and company given its client additions expects a
strong FY2017. On EBIT, the company has guided it to be around 26-28% for
FY2017. We maintain our accumulate rating on the stock with target price of
`2,854.
Y/E
Sales OPM
PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2016E
1,08,487
28.3
24,038 122.8
38.0
20.5
7.8
14.7
4.2
FY2017E
1,22,590
28.5
27,096 138.4
38.9
18.2
7.1
12.7
3.6
Market Outlook
April 20, 2016
LIC Housing Finance (CMP: `485/ TP: `592/Upside:21.9%)
LIC Housing Finance Ltd has come out with its 4QFY16 results with PAT of `448cr,
which is marginally lower than our expectations on the bottom-line front. However,
on the other operating parameters the company has exhibited improvements.
Gross NPAs has gone down by 13 bps to 0.45% from 0.58% in 3QFY16, while
NNPA has gone down by 10 bps to 0.22% from 0.32%. The company has
improved its NIM by 24 bps yoy and 13 bps qoq to 2.71%. Lower cost of funds
seems to helped the company in better margins. For FY16 the company ended
with a loan book growth of 16%, which is decent enough looking at the
challenging macro environment.
We believe Housing Finance Companies like LIC Housing are expected to see
improvement in operating parameters as demand for housing loans is expected to
pick up in the years to come, backed by lower interest rate in the economy. At the
CMP of `485, the stock is trading at 2.3x its FY17 Book Value. We maintain our
BUY rating on the stock with a target price of `592.
Y/E
Op. Inc
NIM
PAT
EPS ABV ROA ROE
P/E P/ABV
March
(` cr)
(%)
(` cr)
(`)
(`)
(%)
(%)
(x)
(x)
FY2016
3,101
2.5
1,664
33.0
176.7
1.4
19.7
14.7
2.7
FY2017E
3,745
2.5
2,029
40.2
207.6
1.4
20.5
12.1
2.3
Results Preview
Wipro (CMP: `589 / TP: `680 / Upside: 15.4%)
Wipro will announce its 4QFY2016 results. The company’s IT services is expected
to post revenues of US$1,902mn with a 3.5% QoQ growth, mainly driven both by
the organic and in-organic initiatives. For 4QFY2016, the company had guided
towards QoQ growth of 2-4%, with organic growth being in 0.5-2.5% QoQ
growth. Overall, in rupee terms, revenues is expected to grow by 6.8% QoQ to
`13,735cr, lead by rupee deprecation. On the operating front, the EBIT margins
came in at 18.7% a 49bps QoQ expansion. On the net profit front, the company
is expected to post a net profit of `2,237cr, posting a QoQ growth of 0.1%. We
maintain our accumulate rating on the stock with target price of `680.
Y/E
Sales OPM
PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2016E
52,827
23.7
9,547
38.6
19.6
15.3
3.0
9.9
2.2
FY2017E
58,410
23.8
10,403
42.1
18.1
14.0
2.7
8.3
1.9
Market Outlook
April 20, 2016
Quarterly Bloomberg Brokers Consensus Estimate
Wipro Ltd (Consol)- April 20, 2016
Particulars (` cr)
4QFY16E
4QFY15
y-o-y (%)
3QFY16
q-o-q (%)
Net sales
13,467
12,142
10.9
12,861
4.7
EBITDA
2,911
2,753
5.7
2,673
8.9
EBITDA margin (%)
21.6
22.7
20.8
Net profit
2,361
2,272
3.9
2,234
5.7
IndusInd Bank Ltd- April 21, 2016
Particulars (` cr)
4QFY16E
4QFY15
y-o-y (%)
3QFY16
q-o-q (%)
PAT
627
495
26.6
581
7.9
Reliance Industries Ltd- April 21, 2016
Particulars (` cr)
4QFY16E
4QFY15
y-o-y (%)
3QFY16
q-o-q (%)
Net sales
50,310
56,043
(10.2)
56,567
(11.1)
EBITDA
10,173
8,629
17.9
10,272
(1.0)
EBITDA margin (%)
20.2
15.4
18.2
Net profit
7,016
6,243
12.4
7,218
(2.8)
Economic and Political News
Govt working on recommendations to reduce bulk drug imports
Domestic cotton output to be 341 lakh bales in 2015-16: CAI
ADB clears $300mn loan for up-gradation of UP roads
Govt bans animal testing for soaps and detergents
Corporate News
CIL to hold e-auction for power plants next week
PNB becomes top mobiliser under Gold Monetisation Scheme
Nestle relaunches Maggi noodles in atta, oats variants
RJio brings high-speed subsea cable network to India
Suzlon acquires 5 firms to execute renewable energy projects
JK Tyre to cater to two- and three-wheeler markets
Market Outlook
April 20, 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
16,015
938
1,040
10.9
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
28,948
1,206
1,414
17.2
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
120,362
853
1,038
21.6
the bad news.
Strong visibility for a robust 20% earnings trajectory, coupled
HDFC Bank
275,143
1,088
1,262
16.0
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
285,475
1,239
1,347
8.7
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
24,486
485
592
21.9
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
12,136
1,011
1,089
7.7
State Governments and opportunity from Smart City, positions
NBCC to report strong growth, going forward.
Source: Company, Angel Research
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
3,659
407
458
12.6
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
6,059
208
270
30.0
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
2,674
81
93
14.4
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
5,252
161
189
17.6
radio business (Radio City) would also boost the company's
revenue growth.
Speedier execution and speedier sales, strong revenue visibilty
Mahindra Lifespace
1,821
444
554
24.8
in short-to-long run, attractive valuations
Massive capacity expansion along with rail advantage at ICD
Navkar Corporation
2,768
194
265
36.5
as well CFS augurs well for the company
Earnings boost on back of stable material prices and
Radico Khaitan
1,177
88
156
76.4
favourable pricing environment. Valuation discount to peers
provides additional comfort
Strong brands and distribution network would boost growth
Siyaram Silk Mills
1,009
1,077
1,354
25.8
going ahead. Stock currently trades at an inexpensive
valuation.
Source: Company, Angel Research
Market Outlook
April 20, 2016
Key Upcoming Events
Result Calendar
Date
Company
Apr 20, 2016
Wipro
Apr 21, 2016
IndusInd Bank, Infotech Enterprises, Hind. Zinc
Apr 22, 2016
HDFC Bank, Cairn India
Apr 24, 2016
Persistent
Apr 25, 2016
ABB
Apr 26, 2016
Rallis, Maruti, Axis Bank
Apr 27, 2016
Exide Industries, FAG Bearings, Yes Bank, KPIT Cummins, Elecon Engineering
Apr 28, 2016
Ambuja Cements, Dabur India
Apr 29, 2016
ICICI Bank, Aventis
May 2, 2016
HDFC
May 3, 2016
TVS Motor, Godrej Consumer
May 4, 2016
Vesuvius India
Source: Bloomberg, Angel Research
Global economic events release calendar
Date
Time
Country
Event Description
Unit
Period
Bloomberg Data
Last Reported Estimated
Apr 20, 2016
7:30PM US
Existing home sales
Million
Mar
5.08
5.26
Apr 21, 2016
6:00PM US
Initial Jobless claims
Thousands
Apr 16
253.00
265.00
7:30PM Euro Zone
Euro-Zone Consumer Confidence
Value
Apr A
(9.70)
(9.30)
Apr 22, 2016
1:00PM Germany
PMI Services
Value
Apr P
55.10
55.10
Apr 25, 2016
7:30PM US
New home sales
Thousands
Mar
512.00
525.00
Apr 26, 2016
7:30PM US
Consumer Confidence
S.A./ 1985=100
Apr
96.20
95.75
Apr 27, 2016
2:00PM UK
GDP (YoY)
% Change
1Q A
2.10
--
Apr 28, 2016
1:25PM Germany
Unemployment change (000's)
Thousands
Apr
--
--
Apr 29, 2016
2:30PM Euro Zone
Euro-Zone GDP s.a. (QoQ)
% Change
1Q A
0.30
--
May 1,, 2016 6:30AM China
PMI Manufacturing
Value
Apr
50.20
--
May 3,, 2016 2:00PM UK
PMI Manufacturing
Value
Apr
51.00
--
May 6,, 2016 6:00PM US
Change in Nonfarm payrolls
Thousands
Apr
215.00
--
Source: Bloomberg, Angel Research
Market Outlook
April 20, 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
4.9
5.0
5.0
4.8
54.0
5.0
4.4
3.7
3.7
52.0
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
8.00
(5.0)
7.00
(10.0)
(15.0)
6.00
(20.0)
5.00
(25.0)
4.00
(30.0)
(35.0)
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
Market Outlook
April 20, 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
2.1
2.0
2.1
1.4
2.0
0.6
0.7
-
(2.0)
(4.0)
(3.8)
(6.0)
(5.9)
(8.0)
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
Market Outlook
April 20, 2016
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
53,710
5.5
36.0
(0.9)
Russia
Micex
1,930
0.8
19.0
16.5
India
Nifty
7,915
5.4
4.6
(9.9)
China
Shanghai Composite
3,042
2.9
3.1
(26.3)
South Africa
Top 40
47,025
1.4
11.7
(1.0)
Mexico
Mexbol
45,780
3.6
10.7
1.6
Indonesia
LQ45
848
(0.9)
8.8
(11.7)
Malaysia
KLCI
1,711
(0.3)
4.8
(7.1)
Thailand
SET 50
904
0.5
12.5
(11.1)
USA
Dow Jones
18,054
3.3
12.9
0.6
UK
FTSE
6,405
3.7
10.8
(8.9)
Japan
Nikkei
16,874
(0.4)
(0.5)
(15.4)
Germany
DAX
10,350
3.7
8.7
(12.8)
France
CAC
4,566
2.3
9.0
(13.3)
Source: Bloomberg, Angel Research
Stock Watch
April 20, 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
192
-
3,733
2,097
2,415
14.4
14.4
9.5
11.0
20.2
17.5
4.0
3.5
21.1
21.3
1.7
1.5
United Phosphorus
Neutral
508
-
21,752
12,500
14,375
18.3
18.3
29.8
35.9
17.0
14.1
3.1
2.6
20.0
20.3
1.8
1.5
Auto & Auto Ancillary
Ashok Leyland
Neutral
109
-
31,077
17,995
21,544
11.4
11.6
3.4
4.7
32.1
23.2
5.6
5.2
17.7
22.2
1.7
1.4
Bajaj Auto
Accumulate
2,540
2,585
73,508
22,709
25,860
20.9
20.1
129.0
143.6
19.7
17.7
6.0
5.2
30.7
29.4
2.7
2.3
Bharat Forge
Accumulate
831
875
19,341
7,351
8,318
19.9
19.7
31.2
36.5
26.6
22.8
4.8
4.0
19.3
19.2
2.7
2.3
Eicher Motors
Neutral
20,268
-
55,051
15,556
16,747
15.5
17.3
464.8
597.5
43.6
33.9
15.9
11.7
36.2
34.3
3.3
3.1
Gabriel India
Accumulate
95
101
1,361
1,415
1,544
8.7
9.0
4.6
5.4
20.6
17.6
3.7
3.3
18.1
18.9
0.9
0.8
Hero Motocorp
Neutral
3,065
-
61,211
28,244
30,532
15.5
15.9
156.7
168.5
19.6
18.2
7.8
6.6
39.9
36.4
2.0
1.8
Jamna Auto Industries Accumulate
148
160
1,185
1,281
1,473
11.2
11.5
7.6
9.2
19.5
16.1
4.9
4.0
25.4
25.2
1.0
0.8
L G Balakrishnan & Bros Neutral
493
-
774
1,254
1,394
11.6
11.8
35.9
41.7
13.8
11.8
1.9
1.6
13.5
13.8
0.7
0.6
Mahindra and Mahindra Accumulate
1,341
1,364
83,292
38,416
42,904
13.7
13.9
54.8
63.4
24.5
21.2
3.8
3.4
15.4
15.8
1.7
1.4
Maruti
Neutral
3,718
-
112,319
57,865
68,104
16.4
16.7
176.3
225.5
21.1
16.5
4.1
3.5
19.4
21.2
1.6
1.3
Minda Industries
Neutral
1,005
-
1,595
2,523
2,890
8.7
9.0
55.0
65.4
18.3
15.4
3.5
2.9
19.3
18.7
0.7
0.6
Motherson Sumi
Buy
261
313
34,543
39,343
45,100
8.8
9.1
10.1
12.5
25.9
20.9
8.2
6.4
35.3
34.4
0.9
0.8
Rane Brake Lining
Buy
384
465
304
454
511
11.5
12.0
25.2
31.0
15.2
12.4
2.3
2.1
14.9
16.6
0.8
0.7
Setco Automotive
Neutral
33
-
438
594
741
12.7
13.7
1.7
3.2
19.3
10.3
2.0
1.8
10.4
16.9
1.1
0.9
Tata Motors
Neutral
407
-
117,538
259,686
273,957
13.0
13.4
25.9
29.5
15.7
13.8
2.1
1.8
8.0
9.0
0.6
0.6
TVS Motor
Neutral
334
-
15,849
11,263
13,122
6.9
8.5
9.2
15.0
36.3
22.2
8.3
6.6
22.7
29.6
1.3
1.1
Amara Raja Batteries
Buy
938
1,040
16,015
4,892
5,871
17.4
17.6
28.8
37.1
32.6
25.3
7.6
6.1
23.4
24.1
3.1
2.5
Exide Industries
Buy
134
162
11,348
6,950
7,784
14.4
14.8
6.6
7.3
20.2
18.3
2.6
2.3
12.6
12.8
1.4
1.2
Apollo Tyres
Accumulate
173
183
8,824
12,056
12,714
17.2
16.4
23.0
20.3
7.5
8.5
1.3
1.2
17.7
13.6
0.8
0.8
Ceat
Neutral
1,147
-
4,641
6,041
6,597
14.1
13.7
99.5
111.9
11.5
10.3
2.3
1.9
19.6
18.5
0.9
0.8
JK Tyres
Neutral
86
-
1,961
7,446
7,669
15.2
14.0
19.6
18.4
4.4
4.7
1.1
0.9
25.2
19.5
0.7
0.6
Swaraj Engines
Neutral
1,099
-
1,364
552
630
14.2
14.7
44.6
54.1
24.6
20.3
5.7
5.2
23.2
25.6
2.1
1.8
Subros
Neutral
92
-
551
1,293
1,527
11.8
11.9
4.2
6.7
21.9
13.7
1.7
1.5
7.7
11.5
0.7
0.6
Indag Rubber
Neutral
173
-
454
283
329
17.0
17.2
13.0
15.4
13.4
11.2
2.9
2.4
21.8
21.6
1.5
1.2
Capital Goods
ACE
Neutral
40
-
395
660
839
4.7
8.2
1.0
3.9
39.9
10.2
1.3
1.1
3.2
11.3
0.8
0.6
BEML
Buy
953
1,157
3,967
3,277
4,006
6.0
8.9
36.2
64.3
26.3
14.8
1.8
1.7
5.7
11.7
1.2
1.0
Bharat Electronics
Buy
1,206
1,414
28,948
7,737
8,634
16.8
17.2
54.0
61.5
22.3
19.6
3.2
2.8
39.3
45.6
2.8
2.4
Stock Watch
April 20, 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
294
353
9,720
5,363
5,963
8.0
9.1
11.0
13.8
26.7
21.3
4.1
3.6
16.2
17.9
1.7
1.5
BGR Energy
Neutral
109
-
784
3,615
3,181
9.5
9.4
16.7
12.4
6.5
8.8
0.6
0.6
10.0
7.0
0.6
0.8
BHEL
Neutral
132
-
32,394
33,722
35,272
10.8
11.7
10.5
14.2
12.6
9.3
0.9
0.9
7.0
9.0
1.0
1.0
Blue Star
Accumulate
407
458
3,659
3,548
3,977
6.3
6.9
13.7
17.2
29.7
23.7
7.5
4.9
26.1
25.4
1.1
0.9
Crompton Greaves
Neutral
55
-
3,460
13,484
14,687
4.9
6.2
4.5
7.1
12.3
7.8
0.9
0.8
7.2
10.8
0.4
0.3
Greaves Cotton
Neutral
133
-
3,259
1,655
1,755
16.6
16.8
7.4
7.8
18.0
17.1
3.6
3.4
21.1
20.6
1.9
1.8
Inox Wind
Buy
255
458
5,660
4,980
5,943
17.0
17.5
26.6
31.6
9.6
8.1
2.9
2.1
35.0
30.0
1.3
1.0
KEC International
Neutral
131
-
3,363
8,791
9,716
6.1
6.8
5.4
8.2
24.2
16.0
2.4
2.2
10.0
14.0
0.6
0.6
Thermax
Neutral
766
-
9,123
6,413
7,525
7.4
8.5
30.5
39.3
25.1
19.5
3.9
3.4
15.0
17.0
1.4
1.1
VATech Wabag
Neutral
578
-
3,152
2,722
3,336
7.9
8.1
19.5
24.6
29.7
23.5
3.1
2.8
11.1
12.4
1.2
1.0
Cement
ACC
Neutral
1,465
-
27,496
13,151
14,757
16.4
18.3
63.9
83.4
22.9
17.6
3.0
2.7
13.3
16.1
1.9
1.6
Ambuja Cements
Neutral
229
-
35,507
11,564
12,556
19.4
20.7
8.9
10.1
25.7
22.7
3.2
3.1
12.8
13.8
2.6
2.4
HeidelbergCement
Neutral
102
-
2,300
1,772
1,926
13.3
15.4
1.0
3.0
101.5
33.8
2.6
2.4
2.6
7.9
1.8
1.6
India Cements
Neutral
94
-
2,874
4,216
4,840
18.0
19.5
4.0
9.9
23.4
9.5
0.9
0.9
4.0
9.5
1.0
0.8
JK Cement
Neutral
657
-
4,591
3,661
4,742
10.1
15.8
7.5
28.5
87.6
23.0
2.6
2.3
7.5
22.9
1.7
1.3
J K Lakshmi Cement
Neutral
366
-
4,301
2,947
3,616
16.7
19.9
11.5
27.2
31.8
13.4
3.0
2.6
9.8
20.8
1.8
1.4
Mangalam Cements
Neutral
242
-
647
1,053
1,347
10.5
13.3
8.4
26.0
28.9
9.3
1.2
1.1
4.3
12.5
1.0
0.7
Orient Cement
Neutral
154
-
3,156
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
464
-
11,049
4,036
4,545
20.8
21.3
15.1
18.8
30.7
24.7
3.8
3.3
12.9
14.3
3.0
2.6
Shree Cement^
Neutral
12,985
-
45,235
7,150
8,742
26.7
28.6
228.0
345.5
56.9
37.6
8.4
7.0
15.7
20.3
5.8
4.7
UltraTech Cement
Neutral
3,407
-
93,496
24,669
29,265
18.2
20.6
82.0
120.0
41.6
28.4
4.5
3.9
11.3
14.7
3.6
3.0
Construction
ITNL
Buy
81
93
2,674
7,360
8,825
34.0
35.9
7.0
9.0
11.6
9.0
0.4
0.4
3.2
3.7
3.7
3.6
KNR Constructions
Buy
571
603
1,605
937
1,470
14.3
14.0
44.2
38.6
12.9
14.8
2.6
2.2
15.4
15.4
1.6
1.1
Larsen & Toubro
Accumulate
1,249
1,310
116,370
58,870
65,708
8.3
10.3
42.0
53.0
29.8
23.6
2.1
1.9
8.8
11.2
2.2
1.9
Gujarat Pipavav Port
Neutral
174
-
8,417
629
684
51.0
52.2
6.4
5.9
27.2
29.5
3.6
3.3
15.9
12.7
13.3
12.0
MBL Infrastructures
Buy
155
285
644
2,313
2,797
12.2
14.6
19.0
20.0
8.2
7.8
0.9
0.8
11.3
10.6
1.0
0.9
Nagarjuna Const.
Neutral
74
-
4,106
7,892
8,842
8.8
9.1
3.0
5.3
24.6
13.9
1.2
1.1
5.0
8.5
0.8
0.6
PNC Infratech
Accumulate
532
558
2,730
1,873
2,288
13.2
13.5
24.0
32.0
22.2
16.6
2.2
1.9
12.1
12.3
1.6
1.3
Simplex Infra
Neutral
248
-
1,226
5,955
6,829
10.3
10.5
16.0
31.0
15.5
8.0
0.8
0.8
5.3
9.9
0.7
0.6
Stock Watch
April 20, 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
585
-
861
1,539
1,801
12.8
12.7
59.0
72.1
9.9
8.1
1.5
1.3
18.6
16.8
0.6
0.5
Sadbhav Engineering
Neutral
282
-
4,829
3,481
4,219
10.7
10.8
8.2
11.7
34.3
24.1
3.3
2.9
10.3
13.5
1.6
1.4
NBCC
Accumulate
1,011
1,089
12,136
5,816
7,382
6.9
7.7
29.6
39.8
34.2
25.4
6.1
4.8
24.1
26.7
1.8
1.4
MEP Infra
Neutral
41
-
670
1,956
1,876
28.1
30.5
1.3
3.0
31.7
13.7
6.7
4.5
21.2
32.8
1.8
1.7
SIPL
Neutral
102
-
3,593
675
1,042
62.4
64.7
-
-
3.8
4.4
-
-
17.0
11.5
Engineers India
Neutral
173
-
5,839
1,667
1,725
13.5
16.0
9.7
11.4
17.9
15.2
2.1
2.0
11.7
13.4
2.2
2.2
Financials
Allahabad Bank
Neutral
56
-
3,434
8,569
9,392
2.8
2.9
16.3
27.5
3.4
2.0
0.3
0.3
7.6
11.9
-
-
Axis Bank
Accumulate
444
494
105,833
26,473
31,527
3.5
3.6
35.7
43.5
12.4
10.2
2.1
1.8
17.9
18.9
-
-
Bank of Baroda
Neutral
148
-
34,159
18,485
21,025
1.9
2.0
13.5
21.1
11.0
7.0
0.9
0.8
7.3
10.6
-
-
Bank of India
Neutral
93
-
7,565
15,972
17,271
1.9
2.0
15.3
33.4
6.1
2.8
0.3
0.2
3.6
7.6
-
-
Canara Bank
Neutral
194
-
10,526
15,441
16,945
2.0
2.1
46.6
70.4
4.2
2.8
0.4
0.3
8.0
11.2
-
-
Dena Bank
Neutral
29
-
1,884
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
208
270
6,059
1,892
2,277
2.9
2.9
25.9
30.8
8.0
6.7
1.2
1.1
15.3
15.9
-
-
Federal Bank
Neutral
45
-
7,748
3,477
3,999
3.0
3.0
5.0
6.2
9.0
7.2
0.9
0.8
10.6
11.9
-
-
HDFC
Neutral
1,127
-
178,095
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
1,088
1,262
275,143
38,309
47,302
4.3
4.3
49.3
61.1
22.1
17.8
3.8
3.3
18.5
19.7
-
-
ICICI Bank
Accumulate
237
254
137,668
34,279
39,262
3.3
3.3
21.0
24.4
11.3
9.7
1.9
1.6
14.4
14.7
-
-
IDBI Bank
Neutral
71
-
14,700
9,625
10,455
1.8
1.8
8.5
14.2
8.4
5.0
0.5
0.5
5.9
9.3
-
-
Indian Bank
Neutral
98
-
4,700
6,160
6,858
2.5
2.5
24.5
29.8
4.0
3.3
0.3
0.3
7.7
8.6
-
-
LIC Housing Finance
Buy
485
592
24,486
3,101
3,745
2.5
2.5
33.0
40.2
14.7
12.1
2.8
2.3
19.7
20.5
-
-
Oriental Bank
Neutral
91
-
2,931
7,643
8,373
2.4
2.4
37.2
45.4
2.5
2.0
0.2
0.2
8.2
9.4
-
-
Punjab Natl.Bank
Neutral
83
-
16,200
23,638
26,557
2.8
2.8
17.9
27.2
4.6
3.0
0.5
0.4
8.5
12.0
-
-
South Ind.Bank
Neutral
18
-
2,417
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
187
-
145,047
79,958
86,061
2.6
2.6
13.4
20.7
14.0
9.0
1.1
1.1
11.5
12.8
-
-
Union Bank
Neutral
128
-
8,796
12,646
14,129
2.3
2.4
31.0
39.1
4.1
3.3
0.4
0.4
9.8
11.4
-
-
Vijaya Bank
Neutral
31
-
2,900
3,536
3,827
1.9
1.9
5.5
6.7
5.6
4.7
0.5
0.4
7.8
8.8
-
-
Yes Bank
Neutral
893
-
37,568
7,190
9,011
3.2
3.3
58.2
69.7
15.3
12.8
2.7
2.3
19.2
19.6
-
-
FMCG
Asian Paints
Neutral
884
-
84,798
16,553
19,160
16.0
16.2
17.7
21.5
50.0
41.1
13.3
12.0
29.4
31.2
4.9
4.2
Britannia
Neutral
2,843
-
34,114
8,481
9,795
14.0
14.1
65.5
78.3
43.4
36.3
20.5
16.9
38.3
41.2
3.7
3.2
Stock Watch
April 20, 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
845
-
22,987
4,836
5,490
19.5
19.7
48.5
53.2
17.4
15.9
12.8
11.1
99.8
97.5
4.5
4.0
Dabur India
Neutral
273
-
48,086
9,370
10,265
17.1
17.2
7.3
8.1
37.3
33.8
11.2
9.1
33.7
30.6
4.8
4.4
GlaxoSmith Con*
Neutral
6,065
-
25,506
4,919
5,742
17.2
17.4
168.3
191.2
36.0
31.7
10.2
8.7
28.8
28.9
4.7
4.0
Godrej Consumer
Neutral
1,376
-
46,869
10,168
12,886
16.1
16.1
32.1
38.4
42.9
35.8
8.7
8.1
19.7
21.0
4.6
3.6
HUL
Neutral
897
-
194,040
34,940
38,957
17.5
17.7
20.8
24.7
43.1
36.3
48.0
38.3
110.5
114.2
5.2
4.6
ITC
Accumulate
335
359
269,863
36,804
38,776
37.9
37.9
12.2
12.9
27.5
26.0
7.6
6.7
27.7
25.8
6.6
6.3
Marico
Neutral
257
-
33,196
6,551
7,766
15.7
16.0
10.4
12.5
24.8
20.6
7.2
6.0
33.2
32.4
5.0
4.2
Nestle*
Accumulate
6,125
6,646
59,055
11,291
12,847
22.2
22.3
158.9
184.6
38.5
33.2
20.2
18.1
55.0
57.3
5.1
4.4
Tata Global
Buy
120
144
7,574
8,635
9,072
9.8
9.9
6.5
7.6
18.5
15.8
1.8
1.8
6.8
7.4
0.8
0.8
Procter & Gamble
Accumulate
6,500
7,369
21,099
2,588
2,939
23.3
23.2
130.2
146.2
49.9
44.5
99.5
95.5
27.6
25.3
2.6
2.2
Hygiene
IT
HCL Tech^
Buy
853
1,038
120,362
42,038
47,503
21.2
21.5
51.5
57.7
16.6
14.8
3.6
2.8
21.5
18.8
2.4
2.0
Infosys
Accumulate
1,239
1,347
285,475
61,850
69,981
27.5
27.5
59.4
65.7
20.9
18.9
4.4
3.8
21.2
20.1
3.7
3.1
TCS
Accumulate
2,522
2,854
497,021
108,487
122,590
28.3
28.5
122.8
138.4
20.5
18.2
7.8
7.1
38.0
38.9
4.2
3.6
Tech Mahindra
Accumulate
476
530
46,097
26,524
29,177
16.2
17.0
28.8
33.6
16.5
14.2
3.2
2.7
19.3
19.1
1.5
1.3
Wipro
Buy
589
680
145,562
50,808
56,189
23.7
23.8
37.3
40.7
15.8
14.5
3.0
2.8
19.2
17.7
2.2
1.9
Media
D B Corp
Accumulate
324
356
5,955
2,241
2,495
27.8
27.9
21.8
25.6
14.9
12.7
3.9
3.4
26.7
28.5
2.5
2.2
HT Media
Neutral
83
-
1,935
2,495
2,603
11.2
11.2
7.3
8.6
11.4
9.7
0.9
0.8
7.4
8.1
0.3
0.3
Jagran Prakashan
Buy
161
189
5,252
2,170
2,355
27.2
26.2
8.9
9.9
18.1
16.2
3.8
3.3
20.9
20.5
2.3
2.1
Sun TV Network
Neutral
361
-
14,244
2,779
3,196
70.2
70.5
22.8
27.3
15.9
13.2
3.9
3.5
26.7
28.3
4.9
4.2
Hindustan Media
Neutral
270
-
1,981
920
1,031
20.0
20.0
19.2
20.9
14.1
12.9
2.3
2.0
16.4
15.3
1.5
1.3
Ventures
Metals & Mining
Coal India
Buy
276
380
174,205
76,167
84,130
19.9
22.3
22.4
25.8
12.3
10.7
4.4
4.3
35.5
41.0
1.6
1.4
Hind. Zinc
Accumulate
168
175
71,133
14,641
14,026
50.4
50.4
17.7
16.0
9.5
10.5
1.5
1.3
16.2
13.2
2.2
2.1
Hindalco
Neutral
97
-
20,051
104,356
111,186
8.7
9.5
6.7
11.1
14.5
8.8
0.5
0.5
3.5
5.9
0.7
0.6
JSW Steel
Neutral
1,332
-
32,205
42,308
45,147
16.4
20.7
(10.3)
49.5
26.9
1.5
1.4
(1.0)
5.6
1.8
1.7
NMDC
Neutral
100
-
39,568
8,237
10,893
46.6
44.5
10.0
11.7
10.0
8.6
1.1
1.0
12.5
13.0
4.6
3.5
SAIL
Neutral
44
-
18,358
45,915
53,954
7.2
10.5
1.5
4.4
29.5
10.2
0.4
0.4
2.3
4.1
1.0
0.9
Vedanta
Neutral
98
-
28,906
71,445
81,910
26.2
26.3
12.9
19.2
7.6
5.1
0.5
0.5
7.2
8.9
0.8
0.6
Tata Steel
Neutral
335
-
32,536
126,760
137,307
8.9
11.3
6.4
23.1
52.7
14.5
1.1
1.0
2.0
7.1
0.8
0.8
Oil & Gas
Cairn India
Neutral
149
-
28,010
11,323
12,490
49.4
51.0
20.7
20.7
7.2
7.2
0.5
0.4
6.4
6.1
1.6
0.9
Stock Watch
April 20, 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
359
-
45,595
64,856
70,933
9.1
9.6
24.0
28.9
15.0
12.5
1.3
1.2
8.8
9.6
0.9
0.8
ONGC
Neutral
208
-
177,740
154,564
167,321
36.8
37.4
28.6
32.5
7.3
6.4
0.9
0.9
12.7
13.5
1.4
1.3
Petronet LNG
Neutral
273
-
20,449
29,691
31,188
5.8
6.2
12.8
13.4
21.3
20.3
3.2
2.8
15.8
14.8
0.7
0.7
Indian Oil Corp
Accumulate
429
455
104,183
359,607
402,760
5.9
6.1
42.5
48.7
10.1
8.8
1.4
1.2
14.1
14.4
0.4
0.3
Reliance Industries
Accumulate
1,062
1,150
344,047
304,775
344,392
12.6
13.4
91.3
102.6
11.6
10.4
1.3
1.2
11.8
12.0
1.0
0.9
Pharmaceuticals
Alembic Pharma
Neutral
574
-
10,811
3,274
3,802
26.9
19.4
35.0
28.7
16.4
20.0
7.3
5.5
55.6
31.2
3.1
2.6
Aurobindo Pharma
Accumulate
783
856
45,833
14,923
17,162
22.0
23.0
35.7
42.8
21.9
18.3
6.5
4.9
34.0
30.2
3.4
2.9
Aventis*
Neutral
4,257
-
9,804
2,082
2,371
17.4
20.8
118.2
151.5
36.0
28.1
5.3
4.2
19.9
25.5
4.5
3.8
Cadila Healthcare
Accumulate
330
352
33,768
10,224
11,840
21.0
22.0
14.6
17.6
22.6
18.7
6.2
4.8
30.8
29.0
3.2
2.7
Cipla
Buy
524
605
42,109
13,979
16,447
20.2
18.6
25.7
27.5
20.4
19.1
3.3
2.9
17.6
16.1
2.9
2.4
Dr Reddy's
Buy
3,092
3,933
52,722
16,838
19,575
25.0
23.1
167.5
178.8
18.5
17.3
3.9
3.2
23.1
20.4
3.1
2.6
Dishman Pharma
Neutral
361
-
2,913
1,733
1,906
21.5
21.5
17.0
19.9
21.2
18.1
2.1
1.9
10.5
11.2
2.1
1.8
GSK Pharma*
Neutral
3,707
-
31,401
2,870
3,158
20.0
22.1
59.5
68.3
62.3
54.3
18.4
18.9
28.5
34.3
10.3
9.5
Indoco Remedies
Neutral
282
-
2,594
1,033
1,199
15.9
18.2
9.4
13.6
30.0
20.7
4.4
3.8
15.7
19.7
2.5
2.2
Ipca labs
Buy
490
900
6,188
3,363
3,909
12.9
18.6
13.4
28.0
36.6
17.5
2.6
2.3
7.4
14.0
2.1
1.8
Lupin
Neutral
1,571
-
70,791
13,092
16,561
25.0
27.0
50.4
68.3
31.2
23.0
6.4
5.1
22.8
24.7
5.0
3.8
Sun Pharma
Buy
837
950
201,378
28,163
32,610
25.8
30.7
17.4
26.9
48.1
31.1
4.6
4.0
13.0
16.6
6.5
5.4
Power
Tata Power
Neutral
70
-
18,824
35,923
37,402
22.6
22.8
4.1
5.2
17.2
13.5
1.3
1.2
7.5
9.3
1.5
1.3
NTPC
Accumulate
139
146
114,983
87,271
99,297
23.5
23.5
11.8
13.3
11.9
10.5
1.3
1.2
11.5
12.2
2.3
2.1
Power Grid
Buy
146
170
76,224
20,702
23,361
86.7
86.4
12.1
13.2
12.1
11.0
1.8
1.6
15.6
15.1
8.5
7.9
Real Estate
MLIFE
Buy
444
554
1,821
697
1,011
14.9
19.3
13.8
20.1
32.2
22.1
1.2
1.2
3.8
5.3
3.9
2.6
Telecom
Bharti Airtel
Neutral
359
-
143,327
101,748
109,191
32.1
31.7
12.0
12.5
29.9
28.7
2.1
1.9
6.9
6.7
2.0
1.8
Idea Cellular
Neutral
121
-
43,494
34,282
36,941
32.0
31.5
5.9
6.2
20.5
19.5
1.9
1.7
9.9
9.3
1.8
1.7
zOthers
Abbott India
Neutral
4,795
-
10,189
2,715
3,153
14.5
14.1
134.3
152.2
35.7
31.5
8.9
7.3
27.4
25.6
3.5
2.9
Bajaj Electricals
Accumulate
223
237
2,254
4,719
5,287
5.2
5.8
8.6
12.7
26.1
17.6
3.0
2.6
11.4
14.8
0.5
0.4
Finolex Cables
Neutral
282
-
4,307
2,520
2,883
12.2
12.0
12.7
14.2
22.2
19.8
3.0
2.7
13.6
13.5
1.5
1.2
Goodyear India*
Accumulate
514
582
1,186
1,800
1,600
11.7
11.5
58.7
52.9
8.8
9.7
2.0
1.7
24.6
18.7
0.4
0.4
Hitachi
Neutral
1,402
-
3,811
1,779
2,081
7.8
8.8
21.8
33.4
64.3
41.9
10.4
8.4
17.4
22.1
1.9
1.6
Jyothy Laboratories
Neutral
306
-
5,547
1,620
1,847
11.5
11.5
7.3
8.5
42.0
36.2
5.4
5.0
13.3
14.4
3.3
2.8
Stock Watch
April 20, 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
36,687
45,575
15,559
20,316
14,488
21.4
21.1
5,488.0
3,798.0
6.7
9.7
2.3
1.9
41.1
21.2
0.7
0.9
Page Industries
Neutral
12,825
-
14,305
1,929
2,450
19.8
20.1
229.9
299.0
55.8
42.9
24.6
17.1
52.1
47.1
7.5
5.9
Relaxo Footwears
Neutral
510
-
6,126
1,767
2,152
12.3
12.5
19.3
25.1
26.5
20.4
6.5
5.0
27.7
27.8
3.4
2.7
Siyaram Silk Mills
Buy
1,077
1,354
1,009
1,636
1,815
11.5
11.5
89.9
104.1
12.0
10.3
2.0
1.7
17.9
17.8
0.7
0.7
Styrolution ABS India* Neutral
619
-
1,089
1,271
1,440
8.6
9.2
32.0
41.1
19.3
15.1
2.0
1.8
10.7
12.4
0.8
0.7
TVS Srichakra
Buy
2,566
3,217
1,965
2,035
2,252
15.9
15.3
248.6
268.1
10.3
9.6
4.5
3.2
43.6
33.9
1.0
0.8
HSIL
Neutral
310
-
2,240
2,123
2,384
16.1
16.5
15.0
18.9
20.6
16.4
1.6
1.5
8.0
9.4
1.4
1.2
Kirloskar Engines India
Neutral
244
-
3,529
2,403
2,554
8.6
9.9
9.2
10.5
26.6
23.3
2.5
2.4
9.7
10.7
1.0
1.0
Ltd
M M Forgings
Buy
457
614
552
511
615
21.7
21.6
43.1
55.8
10.6
8.2
1.9
1.6
19.9
21.2
1.3
1.0
Banco Products (India) Neutral
127
-
905
1,208
1,353
11.0
12.3
10.8
14.5
11.7
8.7
1.3
1.2
11.9
14.5
0.7
0.6
Competent Automobiles Neutral
149
-
91
1,040
1,137
3.2
3.1
25.7
28.0
5.8
5.3
0.9
0.8
15.0
14.3
0.1
0.1
Nilkamal
Neutral
1,311
-
1,957
1,871
2,031
10.7
10.5
63.2
69.8
20.8
18.8
3.4
2.9
17.6
16.6
1.1
1.0
Visaka Industries
Buy
120
144
191
1,086
1,197
9.9
10.3
21.5
28.8
5.6
4.2
0.5
0.5
9.6
11.6
0.4
0.3
Transport Corporation of
Neutral
272
-
2,068
2,830
3,350
8.8
9.0
14.4
18.3
18.9
14.9
2.9
2.5
15.4
17.1
0.9
0.7
India
Elecon Engineering
Neutral
63
-
688
1,359
1,482
10.3
13.7
0.8
3.9
78.6
16.2
1.3
1.2
1.6
7.8
0.9
0.8
Surya Roshni
Buy
156
201
682
2,992
3,223
8.1
8.4
14.7
18.3
10.6
8.5
1.0
0.9
9.7
11.0
0.5
0.5
MT Educare
Neutral
178
-
708
286
366
18.3
17.7
7.7
9.4
23.0
19.0
4.9
4.3
20.2
21.1
2.3
1.8
Radico Khaitan
Buy
88
156
1,177
1,517
1,635
12.7
13.4
5.8
7.1
15.2
12.4
1.3
1.2
8.6
9.6
1.2
1.1
Garware Wall Ropes
Buy
371
473
812
862
974
11.2
11.2
24.9
29.6
14.9
12.6
2.3
1.9
15.1
15.4
0.9
0.7
Wonderla Holidays
Neutral
381
-
2,155
206
308
44.0
43.6
9.0
12.9
42.4
29.6
5.8
5.3
13.7
17.8
10.3
6.9
Linc Pen & Plastics
Neutral
194
-
286
340
371
8.3
8.9
10.8
13.2
17.9
14.7
2.9
2.5
16.0
17.1
0.9
0.8
The Byke Hospitality
Neutral
160
-
641
222
287
20.5
20.5
5.6
7.6
28.3
21.2
5.3
4.4
18.9
20.8
2.8
2.2
Interglobe Aviation
Neutral
1,054
-
37,965
17,022
21,122
20.7
14.5
63.9
53.7
16.5
19.6
24.7
20.3
149.9
103.2
2.2
1.7
Coffee Day Enterprises
Neutral
232
-
4,783
2,692
2,964
17.0
18.6
-
4.7
-
49.0
2.8
2.7
0.2
5.5
2.2
2.0
Ltd
Navneet Education
Neutral
89
-
2,115
998
1,062
24.1
24.0
5.8
6.1
15.4
14.6
3.4
3.0
22.0
20.6
2.1
1.9
Navkar Corporation
Buy
194
265
2,768
365
436
38.3
37.5
5.6
5.9
34.4
33.0
2.2
2.0
6.3
6.1
7.9
6.8
UFO Moviez
Neutral
515
-
1,417
558
619
32.0
33.2
22.5
30.0
22.9
17.2
2.8
2.4
12.0
13.8
2.4
2.0
VRL Logistics
Neutral
389
-
3,549
1,725
1,902
16.5
16.7
12.2
14.6
32.0
26.7
6.7
5.9
20.8
21.9
2.2
1.9
Team Lease Serv.
Neutral
880
-
1,504
2,565
3,229
1.3
1.5
15.2
22.8
57.9
38.6
4.6
4.1
8.0
10.7
0.5
0.4
Stock Watch
April 20, 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
249
-
3,606
928
1,036
15.3
15.1
4.9
6.1
50.5
40.8
4.7
4.4
9.4
10.7
3.6
3.2
Quick Heal
Neutral
240
-
1,678
339
408
27.8
27.3
7.1
7.7
33.9
31.0
2.9
2.9
8.5
9.3
3.5
3.0
Narayana Hrudaya
Neutral
296
-
6,052
1,603
1,873
10.9
11.5
1.0
2.6
310.9
112.0
7.5
6.9
2.4
6.1
4.0
3.4
Manpasand Bever.
Neutral
564
-
2,822
540
836
19.9
19.6
10.2
16.9
55.0
33.4
4.5
4.0
8.1
12.0
4.3
2.7
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on April 18, 2016
Market Outlook
April 20, 2016
Research Team Tel: 022 - 39357800
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