Market Outlook
November 20, 2015
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are expected to open flat to negative tracking the SGX Nifty and
BSE Sensex
1.4
359
25,842
global cues.
Nifty
1.4
111
7,843
The US markets ended flat following the substantial rally seen in the previous session
Mid Cap
1.2
128
10,766
as stocks showed a lack of direction throughout the trading day. The choppy trading
Small Cap
1.3
145
11,299
on Wall Street came as traders took a breather on the heels of the volatility seen
Bankex
1.5
279
19,499
over the past few sessions. The rally seen in the previous session extended the strong
upward move seen on Monday, offsetting nearly the pullback seen last week.
Global Indices
Chg (%)
(Pts)
(Close)
The European markets ended on a positive note. The markets moved higher in the
early trade reacting to the minutes from the recent Federal Reserve meeting, which
Dow Jones
0.0
(4)
17,733
were released after the European close on Wednesday. Meanwhile, the ECB minutes
Nasdaq
0.0
(2)
5,074
released today suggest that further stimulus measures are likely.
FTSE
0.8
51
6,330
Indian shares followed global cues rising by 1.4% after various Fed officials signaled
Nikkei
1.0
211
19,860
confidence in the world's largest economy and the October FOMC minutes showed
Hang Seng
1.4
312
22,500
"most" participants felt conditions for a rate hike "could well be met by the time of the
Shanghai Com
1.4
49
3,617
next meeting provided economic data continued to improve and there were no
unanticipated shocks.
Advances / Declines
BSE
NSE
News & Result Analysis
Advances
1,768
1,074
Tata Motors owned British luxury brand JLR introduces new Range Rover Evoque
Declines
949
431
7th Pay Commission proposes 23.55% hike in salaries
Unchanged
174
132
Detailed analysis on Pg2
Investor’s Ready Reckoner
Volumes (` Cr)
Key Domestic & Global Indicators
BSE
2,554
Stock Watch: Latest investment recommendations on 150+ stocks
NSE
15,316
Refer P4 onwards
Net Inflows (` Cr)
Net
Mtd
Ytd
Top Picks
CMP
Target
Upside
FII
(721)
(4,042)
(18,863)
Company
Sector
Rating
(`)
(`)
(%)
MFs
238
3,010
53,537
Axis Bank
Financials
Buy
463
630
36.0
HCL Tech
IT
Buy
874
1,132
29.6
Top Gainers
Price (`)
Chg (%)
ICICI Bank
Financials
Buy
266
357
34.0
Enginersin
212
10.3
Ashok Leyland
Automobiles
Buy
93
111
19.2
Larsen & Toubro
Construction
Buy
1,359
1,646
21.1
Voltas
310
8.9
More Top Picks on Pg3
Gruh
262
8.7
Aloktext
7
8.1
Key Upcoming Events
Jetairways
449
7.9
Previous
Consensus
Date
Region
Event Description
Reading
Expectations
Nov 23
US
Existing Home Sales (Oct)
5.55 mn
5.44 mn
Top Losers
Price (`)
Chg (%)
Nov 24
US
GDP (QoQ) (Q3)
1.5%
2.0%
Balramchin
74
(10.7)
Nov 27
UK
GDP (QoQ) (Q3)
0.5%
-
Renuka
16
(10.0)
Dec 1
India
RBI Repo Rate
6.75%
-
Eidparry
195
(3.4)
Dlf
104
(2.7)
Drreddy
3,287
(2.6)
As on November 19, 2015
www.angelbroking.com
Market Outlook
November 20, 2015
Tata Motors owned British luxury brand JLR introduces new
Range Rover Evoque
Keeping up the momentum of new product offerings, JLR unveiled the refreshed
version of Land Rover Evoque, at a price of `47.1 lakh (ex-showroom, pre-octroi in
Mumbai). This luxury sports utility vehicle (SUV) comes with a comprehensive range
of new design elements and technologies. The new Evoque features a
comprehensive range of new design elements and technologies to reinforce style,
glamour, luxury and status appeal. The vehicle is on offer in four variants with the
top-end model priced at `63.2 lakh (ex-showroom, pre-octroi in Mumbai). The
new Range Rover Evoque is available for sale at all the 22 authorised retail outlets
of JLR.
While the luxury car market is likely to close the year at 7-8 percent growth, the
company is confident of beating the industry growth rate. The company expects to
close the year with over 3,000 units with a market share of 9-10 percent. Last year
the company sold more than 2,700 units. This is company’s sixth vehicle launch
this year and it has already received order for 125 Range Rover Evoque vehicles.
The Tata Motors owned British luxury brand JLR gets most of its sales from its
locally-assembled models like Discovery Sport, and Evoque from the Land Rover
stable and the XJ and XF from the Jaguar platform. We maintain our Neutral view
on the stock.
7th Pay Commission proposes 23.55% hike in salaries
In a big bonanza to central government employees and pensioners, the seventh
Pay Commission recommended a 23.55 per cent increase in salary, allowances
and pension along with a virtual one-rank-one-pension for civilians, involving an
additional outgo of `1.02 lakh cr a year.
A minimum pay of `18,000 per month and a maximum of `2.5 lakh per month
has been recommended by the commission, headed by Justice A K Mathur. The
recommendations, which are to be implemented from January 1, 2016, will
benefit 47 lakh central government employees and 52 lakh pensioners.
The impact the recommendations will be `1.02 lakh cr — `73,650cr on Central
Budget and `28,450 cr on Railway Budget.
The rise in estimated share of total emoluments in total revenue expenditure
(excluding railways) will be 4.25%, which is lower than the 4.32% for the 6th Pay
Commission award. The panel has suggested abolition of the pay band and the
grade pay, though it retained the annual increment of 3 per cent.
Economic and Political News
India's sugar output rises by 33% in early crushing season
Eight more coal blocks to be auctioned by Jan
Jaitley vows corruption-free governance, reasonable tax rates
Corporate News
M&M to ramp up TUV 300 production to 5,500 to 6,000 units
Companies garner `5,500 crore via NCDs in Apr-Oct
Will sort out noodles approval issue with FSSAI: Ramdev
www.angelbroking.com
Market Outlook
November 20, 2015
Top Picks ★★★★★
Large Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
To outpace battery industry growth due to better technological
Amara Raja Batteries
15,348
899
1,040
15.7
products leading to market share gains in both the automotive
OEM and replacement segments.
Earnings to grow strongly given the MHCV cyclical upturn.
Ashok Leyland
26,495
93
111
19.2
Focus on exports and LCV's provides additional growth
avenue.
Healthy pace of branch expansion, backed by distribution
Axis Bank
1,10,095
463
630
36.0
network, will be the driving force for the bank’s retail business
and overall earnings.
The stock is trading at attractive valuations and is factoring all
HCL Tech
1,22,875
874
1,132
29.6
the bad news.
Strong visibility for a robust 20% earnings trajectory, coupled
HDFC Bank
2,69,082
1,069
1,262
18.1
with high quality of earnings on account of high quality retail
business and strategic focus on highly rated corporates.
Due to its robust franchise and capital adequacy position, the
bank is well positioned to grow by at least a few percentage
ICICI Bank
1,54,571
266
357
34.0
points higher than the average industry growth rate from a
structural point of view.
Back on the growth trend, expect a long term growth of 14%
Infosys
2,40,559
1,047
1,306
24.7
to be a US$20bn in FY2020.
Well positioned to benefit from such expected gradual
recovery in the overall domestic capex cycle, given its presence
Larsen & Toubro
1,26,472
1,359
1,646
21.1
across various infrastructure segments, its execution
capabilities, and its strong balance sheet.
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
23,257
461
571
23.9
post a healthy loan book which is likely to reflect in a strong
earnings growth.
Source: Company, Angel Research
Mid Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
Government thrust on Renewable sector and strong order
Inox Wind
8,193
369
505
36.8
book would drive future growth.
Change in business focus towards high-margin chronic and
Ipca labs
9,766
774
900
16.3
lifestyle segments and increasing penetration in Europe and
US
Economic recovery to have favourable impact on advertising &
circulation revenue growth. Further, the acquisition of a radio
Jagran Prakashan
4,778
146
169
15.6
business (Radio City) would also boost the company's revenue
growth.
Strong brand & quality teaching with innovative technologies
MT Educare
524
132
169
28.3
& higher government educational spending to boost growth
Earnings boost on back of stable material prices and
Radico Khaitan
1,603
121
156
29.5
favourable pricing environment. Valuation discount to peers
provides additional comfort
Strong brands and distribution network would boost growth
Siyaram Silk Mills
871
929
1,145
23.3
going ahead. Stock currently trades at an inexpensive
valuation.
Structural shift in the Lighting industry towards LED lighting will
Surya Roshni
570
130
183
40.8
drive growth.
Source: Company, Angel Research
www.angelbroking.com
Market Outlook
November 20, 2015
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
9.0
8.4
7.0
6.3
8.0
7.5
7.5
6.0
5.2
7.0
7.0
4.8
6.7
6.7
5.0
7.0
6.4
6.6
4.2
4.1
6.3
3.6
3.6
4.0
6.0
2.8
3.0
2.5
2.5
5.0
3.0
4.7
5.0
2.0
4.0
1.0
3.0
-
Source: CSO, Angel Research
Source: MOSPI, Angel Research
Exhibit 3: Monthly CPI inflation trends
Exhibit 4: Manufacturing and services PMI
(%)
56.0
Mfg. PMI
Services PMI
6.0
5.4
5.3
5.4
5.2
5.0
5.0
54.0
4.9
5.0
4.3
4.4
3.7
3.7
52.0
4.0
3.3
50.0
3.0
2.0
48.0
1.0
46.0
-
44.0
Source: MOSPI, Angel Research
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Exhibit 5: Exports and imports growth trends
Exhibit 6: Key policy rates
(%)
Exports yoy growth
Imports yoy growth
(%)
Repo rate
Reverse Repo rate
CRR
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
www.angelbroking.com
www.angelbroking.com
Market Outlook
November 20, 2015
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
6.9
5.3
6.0
4.9
4.7
4.0
2.8
2.3
2.0
1.6
2.0
1.2
1.1
0.8
(2.6)
-
(2.0)
(4.0)
(4.6)
(6.0)
Source: Bloomberg, Angel Research
Exhibit 2: 2015 GDP Growth projection by IMF (%, yoy) across select developing and developed countries
(%)
10.0
7.5
8.0
6.8
5.2
6.0
4.8
3.7
3.1
4.0
2.7
2.0
1.6
2.0
1.2
1.0
-
(2.0)
(4.0)
(1.0)
(3.8)
(6.0)
Source: IMF, Angel Research
Exhibit 3: One year forward P-E ratio across select developing and developed countries
(x)
20.0
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
-
Source: IMF, Angel Research
www.angelbroking.com
www.angelbroking.com
Market Outlook
November 20, 2015
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
48,139
1.5
1.8
(9.9
Russia
Micex
1,811
5.6
8.2
19.3
India
Nifty
7,842
(5.0)
(7.8)
(6.7)
China
Shanghai Composite
3,617
6.1
(5.6)
48.2
South Africa
Top 40
46,852
(1.2)
4.0
7.3
Mexico
Mexbol
44,621
(0.1)
2.4
0.9
Indonesia
LQ45
778
(1.3)
2.8
(11.1)
Malaysia
KLCI
1,660
(2.7)
5.0
(9.0)
Thailand
SET 50
889
(3.0)
(1.6)
(15.1)
USA
Dow Jones
17,733
0.3
2.2
(0.3)
UK
FTSE
6,330
(1.7)
(1.9)
(2.0)
Japan
Nikkei
19,776
8.6
(1.5)
14.3
Germany
DAX
11,085
9.2
2.6
16.9
France
CAC
4,915
4.5
0.5
15.2
Source: Bloomberg, Angel Research
www.angelbroking.com
www.angelbroking.com
Stock Watch
November 20, 2015
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY16E FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
Agri / Agri Chemical
Rallis
Neutral
187
-
3,642
2,075
2,394
14.4
14.4
9.5
11.0
19.7
17.0
3.9
3.4
21.1
21.3
1.8
1.5
United Phosphorus
Accumulate
450
510
19,291
13,698
15,752
17.6
17.6
32.1
38.5
14.0
11.7
2.8
2.3
21.4
21.3
1.5
1.2
Auto & Auto Ancillary
Ashok Leyland
Buy
93
111
26,495
18,763
22,357
11.1
11.2
3.6
4.8
25.9
19.4
4.8
4.4
18.7
22.6
1.4
1.1
Bajaj Auto
Accumulate
2,424
2,672
70,132
24,115
27,600
21.3
21.0
136.8
157.2
17.7
15.4
5.7
4.9
32.2
31.5
2.5
2.1
Bharat Forge
Buy
860
1,016
20,009
8,013
9,250
20.0
20.3
35.2
43.1
24.4
19.9
4.8
4.0
21.6
21.8
2.6
2.2
Eicher Motors
Buy
16,166
19,036
43,877
15,379
16,498
15.6
16.6
473.2
574.8
34.2
28.1
12.6
9.4
36.7
33.2
2.8
2.5
Hero Motocorp
Neutral
2,591
-
51,746
28,561
31,559
14.7
14.7
151.1
163.2
17.2
15.9
6.6
5.7
38.7
35.6
1.7
1.5
L G Balakrishnan & Bros Neutral
483
-
758
1,254
1,394
11.6
11.8
35.9
41.7
13.5
11.6
1.8
1.6
13.5
13.8
0.7
0.6
Mahindra and Mahindra Accumulate
1,292
1,410
80,230
38,513
43,579
13.6
13.7
56.1
65.1
23.0
19.8
3.6
3.2
15.7
16.2
1.7
1.5
Maruti
Accumulate
4,653
4,960
140,556
57,865
68,104
16.4
16.7
176.3
225.5
26.4
20.6
5.1
4.4
19.4
21.2
2.2
1.8
Minda Industries
Accumulate
752
809
1,193
2,567
2,965
8.0
8.3
46.1
57.8
16.3
13.0
2.7
2.3
16.7
17.3
0.6
0.5
Motherson Sumi
Accumulate
286
313
37,843
39,343
45,100
8.8
9.1
10.1
12.5
28.3
22.9
9.0
7.0
35.3
34.4
1.0
0.9
Rane Brake Lining
Buy
318
366
251
454
511
11.1
11.4
23.8
28.1
13.3
11.3
1.9
1.7
14.2
15.3
0.7
0.6
Setco Automotive
Neutral
205
-
549
594
741
12.7
13.7
8.4
15.8
24.5
13.0
2.5
2.2
10.4
16.9
1.4
1.1
Tata Motors
Neutral
407
-
117,553
255,254
301,772
12.9
13.4
23.7
37.3
17.2
10.9
2.1
1.8
7.4
12.1
0.6
0.6
TVS Motor
Accumulate
294
313
13,987
11,845
14,040
7.2
9.0
10.4
17.4
28.3
16.9
7.1
5.4
25.1
32.0
1.2
1.0
Amara Raja Batteries
Buy
899
1,040
15,348
4,892
5,871
17.4
17.6
28.8
37.1
31.2
24.2
7.3
5.8
23.4
24.1
3.1
2.5
Exide Industries
Accumulate
149
162
12,691
6,950
7,784
14.4
14.8
6.6
7.3
22.6
20.5
2.9
2.6
12.6
12.8
1.5
1.4
Apollo Tyres
Accumulate
161
171
8,172
12,146
12,689
16.8
16.0
21.2
19.0
7.6
8.5
1.3
1.1
16.5
13.0
0.8
0.8
Ceat
Accumulate
1,049
1,119
4,244
6,041
6,597
14.1
13.7
99.5
111.9
10.6
9.4
2.1
1.7
19.6
18.5
0.9
0.7
JK Tyres
Neutral
98
-
2,222
7,446
7,669
15.2
14.0
19.6
18.4
5.0
5.3
1.3
1.0
25.2
19.5
0.7
0.6
Swaraj Engines
Neutral
931
-
1,157
552
630
14.2
14.7
44.6
54.1
20.9
17.2
4.9
4.4
23.2
25.6
1.9
1.7
Subros
Neutral
85
-
507
1,268
1,488
11.6
11.9
3.7
6.6
22.9
12.8
1.5
1.4
6.8
11.4
0.7
0.6
Indag Rubber
Neutral
197
-
517
283
329
17.0
17.2
13.0
15.4
15.2
12.8
3.3
2.8
21.8
21.6
1.5
1.3
Capital Goods
ACE
Neutral
44
-
437
660
839
4.7
8.2
1.0
3.9
44.2
11.3
1.4
1.2
3.2
11.3
0.8
0.6
BEML
Neutral
1,043
-
4,342
3,277
4,006
6.0
8.9
29.2
64.3
35.7
16.2
2.0
1.8
5.7
11.7
1.4
1.1
BGR Energy
Neutral
111
-
799
3,615
3,181
9.5
9.4
16.7
12.4
6.6
8.9
0.6
0.6
10.0
7.0
0.6
0.8
BHEL
Neutral
176
-
43,029
33,722
35,272
10.8
11.7
10.5
14.2
16.7
12.4
1.2
1.2
7.0
9.0
1.4
1.3
Blue Star
Accumulate
360
382
3,241
3,624
4,157
5.3
6.0
9.6
14.5
37.4
24.9
6.8
5.9
18.6
25.4
1.0
0.9
www.angelbroking.com
Stock Watch
November 20, 2015
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
Capital Goods
Crompton Greaves
Buy
174
204
10,909
13,484
14,687
4.9
6.2
4.5
7.1
38.7
24.5
2.7
2.6
7.2
10.8
0.9
0.9
Inox Wind
Buy
369
505
8,193
4,980
5,943
17.0
17.5
26.6
31.6
13.9
11.7
4.2
3.1
35.0
30.0
1.8
1.5
KEC International
Neutral
158
-
4,067
8,791
9,716
6.1
6.8
5.4
8.2
29.3
19.3
2.9
2.7
10.0
14.0
0.7
0.6
Thermax
Neutral
876
-
10,436
6,413
7,525
7.4
8.5
30.5
39.3
28.7
22.3
4.4
3.8
15.0
17.0
1.6
1.3
Cement
ACC
Buy
1,333
1,630
25,025
13,151
14,757
16.4
18.3
63.9
83.4
20.9
16.0
2.7
2.5
13.3
16.1
1.7
1.5
Ambuja Cements
Buy
198
233
30,720
11,564
12,556
19.4
20.7
8.9
10.1
22.2
19.6
2.8
2.6
12.8
13.8
2.3
2.1
India Cements
Buy
81
112
2,487
4,216
4,840
18.0
19.5
4.0
9.9
20.2
8.2
0.8
0.8
4.0
9.5
0.9
0.7
JK Cement
Accumulate
648
744
4,529
3,661
4,742
10.1
15.8
18.0
61.0
36.0
10.6
2.6
2.3
7.5
22.9
1.7
1.3
J K Lakshmi Cement
Buy
345
430
4,054
2,947
3,616
16.7
19.9
11.5
27.2
30.0
12.7
2.8
2.5
9.8
20.8
1.8
1.4
Mangalam Cements
Neutral
193
-
516
1,053
1,347
10.5
13.3
8.4
26.0
23.0
7.4
1.0
0.9
4.3
12.5
0.9
0.6
Orient Cement
Accumulate
168
183
3,437
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
373
-
8,886
4,036
4,545
20.8
21.3
15.1
18.8
24.7
19.9
3.0
2.7
12.9
14.3
2.7
2.3
Shree Cement^
Neutral
10,911
-
38,010
7,150
8,742
26.7
28.6
228.0
345.5
47.9
31.6
7.0
5.9
15.7
20.3
5.1
4.1
UltraTech Cement
Buy
2,754
3,282
75,581
25,021
30,023
19.1
21.6
89.0
132.0
31.0
20.9
3.6
3.1
12.2
15.9
3.1
2.6
Construction
ITNL
Neutral
92
-
3,015
7,360
8,825
34.0
35.9
1.0
5.0
91.7
18.3
0.4
0.4
0.3
1.4
3.8
3.7
KNR Constructions
Accumulate
617
673
1,736
937
1,470
14.3
14.0
33.5
38.6
18.4
16.0
2.8
2.4
15.4
15.4
1.9
1.3
Larsen & Toubro
Buy
1,359
1,646
126,472
64,148
73,241
11.5
11.7
62.0
66.0
21.9
20.6
2.2
2.0
13.4
14.0
2.2
1.9
Gujarat Pipavav Port
Neutral
166
-
8,006
629
684
51.0
52.2
6.4
5.9
25.9
28.1
3.4
3.1
15.9
12.7
12.4
11.2
MBL Infrastructures
Buy
214
285
885
2,313
2,797
12.2
14.6
19.0
20.0
11.2
10.7
1.2
1.1
11.3
10.6
1.1
1.0
Nagarjuna Const.
Neutral
79
-
4,414
7,892
8,842
8.3
9.1
2.4
5.3
33.1
15.0
1.3
1.2
4.2
8.6
0.8
0.7
PNC Infratech
Neutral
533
-
2,736
1,798
2,132
13.2
13.5
22.0
30.0
24.2
17.8
2.2
2.0
11.5
11.4
1.6
1.4
Simplex Infra
Neutral
320
-
1,584
6,241
7,008
10.4
10.7
20.0
36.0
16.0
8.9
1.3
1.2
6.8
11.1
0.8
0.6
Power Mech Projects
Neutral
609
-
3,661
1,539
1,801
12.8
12.7
59.0
72.1
10.3
8.5
2.5
2.2
18.6
16.8
2.4
2.0
Sadbhav Engineering
Neutral
318
-
2,226
3,481
4,219
10.7
10.8
8.0
12.0
39.7
26.5
1.3
1.2
10.3
13.5
0.9
0.8
National Buildings
Construction
Buy
928
1,089
7,433
7,382
9,506
7.7
8.6
39.8
54.4
23.3
17.1
3.8
3.4
26.7
29.1
0.8
0.6
Corporation
Sadbhav Infrastructure
Neutral
318
-
2,226
3,481
4,219
10.7
10.8
8.0
12.0
39.7
26.5
1.3
1.2
10.3
13.5
0.9
0.8
Project
Financials
Allahabad Bank
Neutral
74
-
4,471
8,332
9,259
2.8
2.8
21.0
25.6
3.5
2.9
0.4
0.3
9.8
10.9
-
-
Axis Bank
Buy
463
630
110,095
26,473
31,527
3.5
3.6
35.7
43.5
13.0
10.7
2.5
2.2
17.9
18.9
-
-
Bank of Baroda
Neutral
168
-
38,744
19,105
21,474
2.0
2.0
19.1
24.8
8.8
6.8
0.9
0.8
10.2
12.1
-
-
www.angelbroking.com
Stock Watch
November 20, 2015
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
Financials
Bank of India
Neutral
129
-
10,204
15,972
17,271
1.9
2.0
15.3
33.4
8.4
3.9
0.4
0.3
3.6
7.6
-
-
Canara Bank
Neutral
270
-
14,666
15,251
16,725
2.0
2.0
59.3
68.6
4.6
3.9
0.5
0.4
10.1
10.7
-
-
Dena Bank
Neutral
42
-
2,376
3,440
3,840
2.1
2.3
7.3
10.0
5.8
4.2
0.4
0.4
6.1
7.9
-
-
Federal Bank
Neutral
57
-
9,775
3,477
3,999
3.0
3.0
5.0
6.2
11.4
9.1
1.1
1.0
10.6
11.9
-
-
HDFC
Neutral
1,213
-
191,301
10,358
11,852
3.3
3.3
41.1
47.0
29.5
25.8
5.6
5.1
24.7
24.9
-
-
HDFC Bank
Buy
1,069
1,262
269,082
38,309
47,302
4.3
4.3
49.3
61.1
21.7
17.5
3.7
3.2
18.5
19.7
-
-
ICICI Bank
Buy
266
357
154,571
35,168
40,517
3.4
3.4
21.4
25.2
12.5
10.6
2.1
1.8
14.7
15.2
-
-
IDBI Bank
Neutral
84
-
13,529
9,625
10,455
1.8
1.8
8.5
14.2
9.9
5.9
0.6
0.6
5.9
9.3
-
-
Indian Bank
Neutral
126
-
6,066
6,160
6,858
2.5
2.5
24.5
29.8
5.2
4.2
0.4
0.4
7.7
8.6
-
-
LIC Housing Finance
Buy
461
571
23,257
3,101
3,745
2.5
2.5
33.0
40.2
14.0
11.5
2.6
2.2
19.7
20.5
-
-
Oriental Bank
Neutral
147
-
4,405
7,643
8,373
2.4
2.4
37.2
45.4
3.9
3.2
0.4
0.3
8.2
9.4
-
-
Punjab Natl.Bank
Neutral
139
-
27,323
23,638
26,557
2.8
2.8
17.9
27.2
7.8
5.1
0.8
0.6
8.5
12.0
-
-
South Ind.Bank
Neutral
20
-
2,734
1,965
2,185
2.5
2.5
2.5
3.3
8.1
6.1
0.8
0.7
9.5
11.7
-
-
St Bk of India
Buy
244
283
189,295
82,520
93,299
2.7
2.8
20.0
24.5
12.2
10.0
1.3
1.2
11.5
12.8
-
-
Union Bank
Neutral
161
-
11,095
12,646
14,129
2.3
2.4
31.0
39.1
5.2
4.1
0.6
0.5
9.8
11.4
-
-
Vijaya Bank
Neutral
34
-
2,908
3,536
3,827
1.9
1.9
5.5
6.7
6.1
5.1
0.5
0.5
7.8
8.8
-
-
Yes Bank
Buy
733
914
30,702
7,228
9,043
3.2
3.3
57.7
69.4
12.7
10.6
2.3
1.9
19.1
19.6
-
-
FMCG
Asian Paints
Neutral
823
-
78,932
16,553
19,160
16.0
16.2
17.7
21.5
46.6
38.3
12.4
11.1
29.4
31.2
4.6
4.0
Britannia
Neutral
2,944
-
35,323
8,065
9,395
9.6
10.2
47.2
65.5
62.4
45.0
20.7
19.6
38.3
41.2
4.2
3.6
Colgate
Neutral
955
-
25,983
4,836
5,490
19.5
19.7
48.5
53.2
19.7
18.0
14.4
12.6
99.8
97.5
5.3
4.6
Dabur India
Neutral
273
-
47,996
9,370
10,265
17.1
17.2
7.3
8.1
37.3
33.7
11.2
9.1
33.7
30.6
5.0
4.6
GlaxoSmith Con*
Neutral
5,903
-
24,825
4,919
5,742
17.2
17.4
168.3
191.2
35.1
30.9
10.0
8.5
28.8
28.9
4.6
3.9
Godrej Consumer
Neutral
1,232
-
41,940
10,168
12,886
16.1
16.1
32.1
38.4
38.4
32.1
7.8
7.2
19.7
21.0
4.2
3.3
HUL
Neutral
795
-
171,919
34,940
38,957
17.5
17.7
20.8
24.7
38.2
32.2
42.5
34.0
110.5
114.2
4.7
4.2
ITC
Buy
352
409
282,573
41,068
45,068
37.8
37.4
13.9
15.9
25.3
22.1
8.5
7.5
34.1
33.8
6.5
5.9
Marico
Neutral
421
-
27,165
6,551
7,766
15.7
16.0
10.4
12.5
40.6
33.7
11.8
9.8
33.2
32.4
4.1
3.4
Nestle*
Accumulate
6,252
6,646
60,276
11,291
12,847
22.2
22.3
158.9
184.6
39.3
33.9
20.6
18.5
55.0
57.3
5.2
4.5
Tata Global
Accumulate
131
144
8,242
8,635
9,072
9.8
9.9
6.5
7.6
20.1
17.2
2.0
1.9
6.8
7.4
0.9
0.8
IT
HCL Tech^
Buy
874
1,132
122,875
42,038
47,503
23.2
23.5
55.8
62.9
15.7
13.9
3.6
2.8
23.0
19.8
2.5
2.0
www.angelbroking.com
Stock Watch
November 20, 2015
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY16E FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
IT
Infosys
Buy
1,047
1,306
240,559
60,250
66,999
28.0
28.0
58.3
63.7
18.0
16.4
3.8
3.2
20.9
19.7
3.3
2.8
TCS
Buy
2,363
3,165
465,652
111,274
126,852
28.4
28.7
125.4
143.9
18.9
16.4
7.5
6.9
39.9
42.2
3.8
3.3
Tech Mahindra
Buy
534
646
51,396
25,566
28,890
16.0
17.0
26.3
31.9
20.3
16.8
3.7
3.1
17.9
18.6
1.8
1.5
Wipro
Buy
557
719
137,684
52,414
58,704
23.7
23.8
38.4
42.3
14.5
13.2
2.8
2.5
19.5
18.0
2.2
1.8
Media
D B Corp
Accumulate
324
356
5,959
2,241
2,495
27.8
27.9
21.8
25.6
14.9
12.7
3.9
3.4
26.7
28.5
2.6
2.3
HT Media
Neutral
78
-
1,812
2,495
2,603
11.2
11.2
7.3
8.6
10.7
9.1
0.8
0.8
7.4
8.1
0.2
0.2
Jagran Prakashan
Buy
146
169
4,778
2,170
2,355
27.0
27.6
12.8
10.3
11.4
14.2
3.2
3.0
21.8
19.4
2.0
1.7
Sun TV Network
Neutral
382
-
15,042
2,779
3,196
70.2
70.5
22.8
27.3
16.7
14.0
4.1
3.7
26.7
28.3
5.2
4.5
Hindustan Media
Neutral
269
-
1,976
920
1,031
20.0
20.0
19.2
20.9
14.0
12.9
2.3
2.0
16.4
15.3
1.7
1.5
Ventures
Metals & Mining
Coal India
Accumulate
334
380
210,809
76,167
84,130
19.9
22.3
22.4
25.8
14.9
12.9
5.4
5.2
35.5
41.0
2.1
1.9
Hind. Zinc
Buy
143
175
60,464
14,641
14,026
50.4
50.4
17.7
16.0
8.1
8.9
1.2
1.1
16.2
13.2
1.7
1.6
Hindalco
Neutral
79
-
16,210
104,356
111,186
8.7
9.5
6.7
11.1
11.7
7.1
0.4
0.4
3.5
5.9
0.7
0.6
JSW Steel
Neutral
902
-
21,809
42,308
45,147
16.4
20.7
(10.3)
49.5
18.2
1.0
1.0
(1.0)
5.6
1.6
1.5
NMDC
Neutral
92
-
36,475
8,237
10,893
46.6
44.5
10.0
11.7
9.3
7.9
1.0
0.9
12.5
13.0
4.2
3.2
SAIL
Neutral
45
-
18,482
45,915
53,954
7.2
10.5
1.5
4.4
29.7
10.2
0.4
0.4
2.3
4.1
1.0
0.9
Vedanta
Neutral
92
-
27,186
71,445
81,910
26.2
26.3
12.9
19.2
7.1
4.8
0.5
0.4
7.2
8.9
0.8
0.6
Tata Steel
Neutral
229
-
22,231
126,760
137,307
8.9
11.3
6.4
23.1
36.0
9.9
0.7
0.7
2.0
7.1
0.8
0.7
Oil & Gas
Cairn India
Neutral
136
-
25,498
11,323
12,490
49.4
51.0
20.7
20.7
6.6
6.6
0.4
0.4
6.4
6.1
1.3
0.7
GAIL
Neutral
317
-
40,198
64,856
70,933
9.1
9.6
24.0
28.9
13.2
11.0
1.1
1.1
8.8
9.6
0.8
0.7
ONGC
Neutral
233
-
199,300
154,564
167,321
36.8
37.4
28.6
32.5
8.1
7.2
1.0
1.0
12.7
13.5
1.5
1.4
Petronet LNG
Neutral
206
-
15,458
29,691
31,188
5.8
6.2
12.8
13.4
16.1
15.4
2.4
2.1
15.8
14.8
0.6
0.6
Indian Oil Corp
Accumulate
407
455
98,830
359,607
402,760
5.9
6.1
42.5
48.7
9.6
8.4
1.3
1.1
14.1
14.4
0.4
0.3
Reliance Industries
Accumulate
934
1,050
302,534
304,775
344,392
12.6
13.4
91.3
102.6
10.2
9.1
1.2
1.0
11.8
12.0
0.9
0.8
Pharmaceuticals
Alembic Pharma
Neutral
653
-
12,309
2,658
3,112
24.1
20.2
24.6
23.9
26.5
27.3
9.5
7.3
42.5
30.2
4.6
3.9
Aurobindo Pharma
Accumulate
817
872
47,730
14,923
17,162
23.0
23.0
38.2
43.6
21.4
18.8
6.6
5.0
36.0
30.2
3.5
3.0
Aventis*
Neutral
4,483
-
10,325
2,082
2,371
17.4
20.8
118.2
151.5
37.9
29.6
5.6
4.5
19.9
25.5
4.6
3.9
Cadila Healthcare
Neutral
412
-
42,168
10,224
11,840
21.0
22.0
14.6
17.6
28.2
23.4
7.7
6.1
30.8
29.0
4.2
3.5
Cipla
Neutral
635
-
51,009
14,211
16,611
20.6
19.0
27.0
28.9
23.5
22.0
4.0
3.4
18.4
16.8
3.6
3.0
Dr Reddy's
Buy
3,287
3,933
56,045
16,838
19,575
25.0
23.1
167.5
178.8
19.6
18.4
4.1
3.5
23.1
20.4
3.3
2.8
www.angelbroking.com
Stock Watch
November 20, 2015
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY16E FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
Pharmaceuticals
Dishman Pharma
Neutral
329
-
2,653
1,716
1,888
20.2
20.2
16.3
21.6
20.2
15.2
1.9
1.7
9.7
11.7
1.7
1.4
GSK Pharma*
Neutral
3,145
-
26,636
2,870
3,158
20.0
22.1
59.5
68.3
52.9
46.0
15.6
16.0
28.5
34.3
8.8
8.0
Indoco Remedies
Neutral
306
-
2,823
1,033
1,199
15.9
18.2
9.4
13.6
32.6
22.5
4.8
4.1
15.7
19.7
2.8
2.4
Ipca labs
Buy
774
900
9,766
3,363
3,909
12.9
18.6
13.4
28.0
57.8
27.6
7.5
6.0
7.4
14.0
3.2
2.7
Lupin
Neutral
1,807
-
81,330
13,092
16,561
25.0
27.0
50.4
68.3
35.8
26.5
7.4
5.9
22.8
24.7
5.9
4.6
Sun Pharma
Buy
743
950
178,786
28,163
32,610
25.8
30.7
17.4
26.9
42.7
27.6
4.1
3.5
13.0
16.6
5.8
4.8
Power
Tata Power
Neutral
67
-
18,040
35,923
37,402
22.6
22.8
4.1
5.2
16.5
13.0
1.3
1.2
7.5
9.3
1.5
1.3
NTPC
Buy
134
157
110,283
87,064
98,846
23.5
23.5
11.7
13.2
11.4
10.1
1.3
1.2
11.4
12.1
2.3
2.0
Power Grid
Buy
132
170
68,822
20,702
23,361
86.7
86.4
12.1
13.2
10.9
10.0
1.6
1.4
15.6
15.1
8.3
7.7
Telecom
Bharti Airtel
Neutral
339
-
135,592
101,748
109,191
32.1
31.7
12.0
12.5
28.3
27.1
1.9
1.8
6.9
6.7
2.0
1.8
Idea Cellular
Neutral
133
-
48,019
34,282
36,941
32.0
31.5
5.9
6.2
22.6
21.5
2.1
1.9
9.9
9.3
2.0
1.9
zOthers
Abbott India
Neutral
5,168
-
10,981
2,715
3,153
14.5
14.1
134.3
152.2
38.5
34.0
9.6
7.9
27.4
25.6
3.8
3.2
Bajaj Electricals
Buy
227
341
2,294
4,719
5,287
5.2
5.8
8.6
12.7
26.6
18.0
3.0
2.7
11.4
14.8
0.5
0.4
Finolex Cables
Neutral
259
-
3,966
2,520
2,883
12.2
12.0
12.7
14.2
20.5
18.3
2.8
2.5
13.6
13.5
1.3
1.1
Goodyear India*
Accumulate
560
622
1,292
1,888
1,680
12.1
11.9
62.2
56.6
9.0
9.9
2.1
1.8
25.9
19.7
0.5
0.5
Hitachi
Neutral
1,356
-
3,688
1,779
2,081
7.8
8.8
21.8
33.4
62.2
40.6
10.0
8.1
17.4
22.1
2.1
1.8
Jyothy Laboratories
Neutral
299
-
5,423
1,620
1,847
11.5
11.5
7.3
8.5
41.1
35.3
5.3
4.9
13.3
14.4
3.2
2.7
MRF
Buy
39,280
45,575
16,659
20,316
14,488
21.4
21.1
5,488.0
3,798.0
7.2
10.3
2.4
2.0
41.1
21.2
0.8
1.0
Page Industries
Neutral
13,133
-
14,648
1,929
2,450
19.8
20.1
229.9
299.0
57.1
43.9
25.2
17.5
52.1
47.1
7.6
6.0
Relaxo Footwears
Neutral
498
-
5,980
1,767
2,152
12.3
12.5
19.3
25.1
25.9
19.9
6.4
4.9
27.7
27.8
3.4
2.8
Siyaram Silk Mills
Buy
929
1,145
871
1,636
1,815
11.5
11.5
89.9
104.1
10.3
8.9
1.7
1.5
17.9
17.8
0.7
0.6
Styrolution ABS India*
Neutral
739
-
1,299
1,271
1,440
8.6
9.2
32.0
41.1
23.1
18.0
2.4
2.1
10.7
12.4
1.0
0.9
Tree House
Buy
233
314
986
256
315
57.2
57.5
16.5
21.0
14.1
11.1
1.4
1.2
9.6
10.9
4.0
3.4
TVS Srichakra
Buy
2,723
3,240
2,085
2,101
2,338
15.7
15.0
248.6
270.0
11.0
10.1
4.8
3.4
43.6
34.0
1.0
0.9
HSIL
Accumulate
286
302
2,069
2,123
2,384
16.1
16.5
15.0
18.9
19.0
15.2
1.5
1.4
8.0
9.4
1.3
1.2
Kirloskar Engines India
Neutral
262
-
3,794
2,471
2,826
8.8
10.4
9.1
13.3
28.7
19.7
2.7
2.5
9.7
13.4
1.2
1.0
Ltd
M M Forgings
Buy
511
614
617
511
615
21.7
21.6
43.1
55.8
11.8
9.2
2.2
1.8
19.9
21.2
1.4
1.1
Banco Products (India)
Neutral
122
-
873
1,208
1,353
11.0
12.3
10.8
14.5
11.3
8.4
1.3
1.2
11.9
14.5
0.7
0.6
Competent Automobiles Neutral
140
-
86
1,040
1,137
3.2
3.1
25.7
28.0
5.4
5.0
0.8
0.7
15.0
14.3
0.1
0.1
www.angelbroking.com
Stock Watch
November 20, 2015
Company Name
Reco
CMP
Target Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E FY16E FY17E
zOthers
Nilkamal
Neutral
999
-
1,491
1,910
2,083
10.5
10.3
63.3
69.2
15.8
14.4
2.6
2.2
17.6
16.5
0.8
0.7
Visaka Industries
Buy
116
166
185
1,158
1,272
8.6
9.5
23.7
32.7
4.9
3.6
0.5
0.4
10.1
12.5
0.3
0.3
Transport Corporation of
Neutral
296
-
2,254
2,830
3,350
8.8
9.0
14.4
18.3
20.6
16.2
3.2
2.8
15.4
17.1
0.9
0.8
India
Elecon Engineering
Accumulate
80
85
868
1,369
1,533
13.7
14.9
3.3
6.1
24.0
13.1
1.6
1.5
6.6
11.4
1.0
0.9
Surya Roshni
Buy
130
183
570
2,992
3,223
8.1
8.4
14.7
18.3
8.9
7.1
0.8
0.7
9.7
11.0
0.5
0.4
MT Educare
Buy
132
169
524
286
366
18.3
17.7
7.7
9.4
17.1
14.1
3.6
3.2
20.2
21.1
1.7
1.3
Radico Khaitan
Buy
121
156
1,603
1,565
1,687
12.2
13.0
5.7
7.1
21.1
17.0
1.8
1.6
8.3
9.6
1.5
1.4
Garware Wall Ropes
Buy
353
423
772
861
967
10.9
10.9
24.0
28.2
14.7
12.5
2.2
1.9
14.6
14.9
0.9
0.8
Wonderla Holidays
Neutral
394
-
2,227
206
308
44.0
43.6
9.0
12.9
43.8
30.6
6.0
5.4
13.7
17.8
10.7
7.1
Linc Pen & Plastics
Accumulate
170
185
251
340
371
8.3
8.9
10.8
13.2
15.7
12.9
2.5
2.2
16.0
17.1
0.8
0.7
The Byke Hospitality
Accumulate
167
181
670
222
287
20.5
20.5
5.6
7.6
29.6
22.1
5.6
4.6
18.9
20.8
3.1
2.4
Navneet Education
Accumulate
86
97
433
998
1,062
24.1
24.0
5.8
6.1
15.0
14.2
3.3
2.9
22.0
20.6
0.5
0.5
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on November 19, 2015
www.angelbroking.com
Market Outlook
November 20, 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 Metropolitian Stock Exchange of India 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
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources
believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for
general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way responsible for any
loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Pvt.
Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any
representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking
Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance,
or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or
in connection with the use of this information.
Note: Please refer to the important ‘Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the
latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may have
investment positions in the stocks recommended in this report.
www.angelbroking.com