Market Outlook

September 21, 2015

Dealer’s Diary

Domestic Indices

Chg (%)

(Pts)

(Close)

BSE Sensex

1.0

255

26,219

Indian markets are expected to open in the red tracking the SGX Nifty and Asian

Nifty

1.0

7,982

cues.

MID CAP

0.9

10,646

US markets closed in the red after the Federal Reserve’s decision to keep policy

SMALL CAP

1.1

118

10,804

interest rate unchanged leading to continued uncertainty for the markets.

BSE HC

1.2

205

17,438

European markets also closed in the negative reacting the US Fed’s decision and

BSE PSU

1.5

100

6,788

ahead of the Greece elections, which could likely result in the need for the formation

BANKEX

2.7

518

19,953

of a coalition government.

AUTO

0.4

17,572

METAL

0.6

7,291

Indian markets closed in the green but well off the day’s highs in the wake of weak

OIL & GAS

0.9

8,750

European cues and fall in US futures.

BSE IT

0.7

11,229

News & Result Analysis

Global Indices

Chg (%)

(Pts)

(Close)

 Policy on coal linkages auction may take some time: Government

Dow Jones

(1.7)

(290)

16,385

 Government may raise FDI Cap in DTH, cable networks

NASDAQ

(1.4)

(67)

4,827

Refer detailed news analysis on the following page

FTSE

(1.3)

(83)

6,104

Markets Today

Nikkei

(2.0)

(362)

18,070

The trend deciding level for the day is 26,274 / 7,998 levels. If NIFTY trades above

Hang Seng

0.3

21,921

this level during the first half-an-hour of trade then we may witness a further rally up

Straits Times

(0.6)

(16)

2,880

to 26,417 - 26,615 / 8,039 - 8,097 levels. However, if NIFTY trades below

Shanghai Com

0.4

3,098

26,274 / 7,998 levels for the first half-an-hour of trade then it may correct towards

26,076 - 25,932 / 7,940 - 7,898 levels.

Indian ADR

Chg (%)

(Pts)

(Close)

Indices

PIVOT

INFY

(1.9)

(0.3)

$17.4

SENSEX

25,932

26,076

26,274

26,417

26,615

WIT

(1.0)

(0.1)

$12.0

NIFTY

7,898

7,940

7,998

8,039

8,097

IBN

(1.9)

(0.2)

$8.6

HDB

(0.9)

(0.5)

$58.6

Net Inflows (September 16, 2015)

` cr

Purch

Sales

Net

MTD

YTD

Advances / Declines

BSE

NSE

FII

3,908

4,122

(214)

(3,004)

120,756

Advances

1,712

1,030

MFs

696

325

371

4,682

75,330

Declines

917

449

Unchanged

104

106

FII Derivatives (September 18, 2015)

` cr

Purch

Sales

Net

Open Interest

Volumes (` cr)

Index Futures

5,160

4,689

470

25,677

BSE

4,594

Stock Futures

6,399

5,310

1,090

48,111

NSE

23,031

Gainers / Losers

Gainer

Loser

Company

Price (`)

chg (%)

Company

Price (`)

chg (%)

FORTIS

178

10.0

SKSMICRO

381

(15.5)

PIIND

8.2

EMAMILTD

1,093

(5.6)

GRUH

257

8.2

BAJFINANCE

4,938

(5.0)

BALRAMCHIN

7.6

SUNASIAN

115

(5.0)

FRL

119

7.3

PMCFIN

(4.4)

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Market Outlook

September 21, 2015

Policy on coal linkages auction may take some time: Government

Government has informed Coal India (CIL) that the policy with regard to auction of

coal linkages may take some more time to be finalised. The coal ministry however

added that an in-principle decision has already been taken to grant future

linkages to non-regulated sector through a transparent process of competitive

bidding through auction route.

Coal and Power Minister Piyush Goyal had informed Parliament last month that

the government is considering a policy for coal linkage auction and has sought

comments/views from stakeholders on the draft auction methodology which it has

prepared.

An Inter-Ministerial Committee (IMC) was set up in January to consider various

models, including auctioning of coal linkages/LoAs (Letter of Assurances) through

competitive bidding as the selection process and to recommend the optimal

structure that would meet the requirements of all the stakeholders.

Till now, Standing Linkage Committee has been deciding on allocation of long-

term and short-term linkages for the sectors, including power and steel. The new

policy to allow auction of coal linkages would be a positive for CIL, as it would

help market determined rates for coal supplied to the non-regulated sectors. We

retain our Buy rating on the stock.

Government may raise FDI Cap in DTH, cable networks

An inter-ministerial committee is considering a proposal to raise FDI (foreign direct

investment) limits to 100% from 74% currently in broadcasting carriage and

content services, including direct-to-home (DTH) and cable networks, aimed at

attracting overseas investment and improve infrastructure.

In case of broadcasting content services - uplinking of news and current affairs TV

channels, the proposal under discussion is to raise the limit to 49% from the

present 26%. Increase in FDI limit will help improve the pace of digitization of

broadcasting services across India. Positive for cable and DTH companies such as

Dish TV, Den Networks & Hathway.

Economic and Political News

 Petrol, diesel contribute `30,000cr additional excise in April-August

 India's merchandise exports slide as commodity prices dip

 Companies Act to be fully implemented by March 2016

Corporate News

 BPCL all set to start work on `5,000cr complex in Kochi

 Leela sells Goa property to Malaysian firm for `725cr

 SRS Ltd to invest up to `900cr in 2 years for expansion

www.angelbroking.com

Market Outlook

September 21, 2015

Top Picks

Large Cap

Market Cap

CMP

Target

Upside

Company

Sector

Rating

(` Cr)

(`)

(%)

Aurobindo

Pharma

41,310

Buy

707

872

23.3

Axis Bank

Financials

1,22,983

Buy

517

701

35.5

ICICI Bank

Financials

1,61,474

Buy

278

370

33.1

Infosys

2,53,755

Buy

1,105

1,306

18.2

Capital

Inox Wind

8,254

Buy

372

505

35.8

Goods

LIC HFL

Financials

22,334

Buy

443

570

28.8

Power Grid

Power

69,842

Buy

134

170

27.3

TCS

5,00,289

Buy

2,554

3,168

24.0

Tech Mahindra IT

53,912

Buy

560

646

15.3

Yes Bank

Financials

32,244

Buy

770

953

23.7

Source: Angel Research, Bloomberg

Mid Cap

Market Cap

CMP

Target

Upside

Company

Sector

Rating

(` Cr)

(`)

(%)

Bajaj Electricals

Others

2,570

Buy

255

341

33.9

Garware Wall

Others

661

Buy

302

390

29.2

MBL Infra

Construction

1,014

Buy

245

360

47.1

Auto

Minda Industries

798

Buy

503

652

29.6

Ancillary

MT Educare

Others

511

Buy

128

169

31.6

Radico Khaitan

Others

1,128

Buy

112

32.2

Surya Roshni

Others

531

Buy

121

183

51.1

Tree House

Others

1,497

Buy

354

449

26.9

Source: Angel Research, Bloomberg

www.angelbroking.com

Market Outlook

September 21, 2015

Global economic events release calendar

Date

Time

Country Event Description

Unit

Period

Bloomberg Data

Last Reported Estimated

September 21, 2015

7:30PM

Existing home sales

Million

Aug

5.59

5.50

September 22, 2015

7:30PM

Euro Zone Euro-Zone Consumer Confidence

Value

Sep A

(6.90)

(7.00)

September 23, 2015

1:00PM

Germany PMI Services

Value

Sep P

54.90

54.50

1:00PM

Germany PMI Manufacturing

Value

Sep P

53.30

52.60

September 24, 2015

6:00PM

Initial Jobless claims

Thousands

Sep 19

264.00

7:30PM

New home sales

Thousands

Aug

507.00

515.00

September 25, 2015

6:00PM

GDP Qoq (Annualised)

% Change

2Q T

3.70

September 29, 2015

7:30PM

Consumer Confidence

S.A./ 1985=100

Sep

101.54

11:00AM

India

RBI Reverse Repo rate

Sep 29

6.25

11:00AM

India

RBI Repo rate

Sep 29

7.25

11:00AM

India

RBI Cash Reserve ratio

Sep 29

4.00

September 30, 2015

1:25PM

Germany Unemployment change (000's)

Thousands

Sep

(7.00)

2:00PM

GDP (YoY)

% Change

2Q F

2.60

October 1, 2015

6:30AM

China

PMI Manufacturing

Value

Sep

49.70

2:00PM

PMI Manufacturing

Value

Sep

51.50

October 2, 2015

6:00PM

Change in Nonfarm payrolls

Thousands

Sep

173.00

6:00PM

Unnemployment rate

Sep

5.10

October 7, 2015

2:00PM

Industrial Production (YoY)

% Change

Aug

0.80

October 8, 2015

4:30PM

BOE Announces rates

% Ratio

Oct 8

0.50

October 9, 2015

India

Imports YoY%

% Change

Sep

(9.95)

India

Exports YoY%

% Change

Sep

(20.66)

October 12, 2015

5:30PM

India

Industrial Production YoY

% Change

Aug

4.20

October 13, 2015

2:00PM

CPI (YoY)

% Change

Sep

China

Exports YoY%

% Change

Sep

(5.50)

October 14, 2015

2:00PM

Jobless claims change

% Change

Sep

1.20

12:00PM

India

Monthly Wholesale Prices YoY%

% Change

Sep

(4.95)

7:00AM

China

Consumer Price Index (YoY)

% Change

Sep

2.00

October 15, 2015

6:00PM

Consumer price index (mom)

% Change

Sep

(0.10)

Source: Bloomberg, Angel Research

Market Outlook

September 21, 2015

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

9.0

8.4

6.0

5.2

4.8

4.4

4.2

5.0

8.0

7.5

3.6

4.0

3.4

7.0

2.8

2.6

2.5

6.7

6.6

3.0

7.0

6.3

6.4

2.0

6.0

1.0

5.0

4.7

5.0

(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

(%)

56.0

Mfg. PMI

Services PMI

5.6

6.0

5.4

5.3

5.4

54.0

5.2

5.0

4.9

4.6

5.0

4.3

52.0

3.7

4.0

3.3

50.0

3.0

2.0

48.0

1.0

46.0

44.0

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

www.angelbroking.com

Market Outlook

September 21, 2015

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

47,264

3.4

(8.8)

(18.2)

Russia

Micex

1,711

2.9

4.0

19.5

India

Nifty

7,982

(3.8)

(3.4)

1.7

China

Shanghai Composite

3,094

(11.8)

(37.6)

32.8

South Africa

Top 40

45,616

5.1

(0.2)

1.2

Mexico

Mexbol

43,565

3.3

(2.9)

(4.8)

Indonesia

LQ45

740

1.8

(12.4)

(16.9)

Malaysia

KLCI

1,656

5.2

(2.4)

10.5

Thailand

SET 50

903

2.0

(8.4)

14.6

USA

Dow Jones

16,385

(0.5)

(7.0)

(5.2)

FTSE

6,104

(1.4)

(7.8)

(10.7)

Japan

Nikkei

18,070

(7.0)

(7.8)

10.7

Germany

DAX

9,916

(2.1)

(7.3)

1.2

France

CAC

4,536

(2.1)

(3.3)

1.7

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

September 21, 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

223

4,332

2,075

2,394

14.4

9.5

11.0

23.5

20.3

4.7

4.0

21.1

21.3

2.1

1.8

United Phosphorus

Accumulate

482

510

20,678

13,698

15,752

17.6

32.1

38.5

15.0

12.5

3.0

2.4

21.4

21.3

1.6

1.3

Auto & Auto Ancillary

Ashok Leyland

Accumulate

25,072

18,186

21,529

10.8

11.2

3.3

4.5

26.7

19.6

4.5

4.2

17.3

21.6

1.3

1.1

Bajaj Auto

Accumulate

2,294

2,438

66,385

23,544

27,245

19.8

127.0

143.4

18.1

16.0

5.5

4.7

30.3

29.4

2.4

2.0

Eicher Motors

Buy

18,234

22,859

49,493

11,681

15,550

15.3

16.9

358.5

564.3

50.9

32.3

15.3

11.4

29.8

34.9

4.1

3.1

Hero Motocorp

Accumulate

2,429

2,672

48,495

28,500

32,764

14.1

14.3

146.9

167.0

16.5

14.5

6.3

5.3

37.8

36.5

1.5

1.3

L G Balakrishnan & Bros Neutral

447

702

1,254

1,394

11.6

11.8

35.9

41.7

12.5

10.7

1.7

1.5

13.5

13.8

0.7

0.6

Mahindra and Mahindra Buy

1,202

1,383

74,630

38,337

43,069

13.0

13.4

52.9

63.5

22.7

18.9

3.4

3.0

15.0

15.9

1.6

1.4

Maruti

Accumulate

4,404

4,735

133,026

58,102

68,587

16.7

16.9

182.0

225.5

24.2

19.5

4.8

4.1

19.9

21.0

2.1

1.7

Minda Industries

Buy

503

652

798

2,567

2,965

7.3

8.0

38.8

54.3

13.0

9.3

1.9

1.6

14.4

16.8

0.4

0.3

Rane Brake Lining

Buy

292

366

231

454

511

11.1

11.4

23.8

28.1

12.3

10.4

1.7

1.6

14.2

15.3

0.6

Setco Automotive

Neutral

230

614

594

741

12.7

13.7

8.4

15.8

27.4

14.6

2.8

2.5

10.4

16.9

1.5

1.2

Tata Motors

Buy

328

391

94,816

264,038

297,882

13.8

13.9

34.5

38.9

9.5

8.4

1.6

1.4

17.6

16.8

0.5

TVS Motor

Neutral

236

11,195

11,702

13,713

6.8

7.7

10.1

14.5

23.3

16.3

5.7

4.6

24.5

28.3

0.9

0.8

Amara Raja Batteries

Neutral

1,017

17,368

5,101

6,224

17.8

17.6

31.1

39.2

32.7

25.9

8.1

6.4

24.8

3.4

2.7

Exide Industries

Accumulate

148

159

12,593

7,363

8,247

13.7

14.5

6.6

7.7

22.5

19.2

2.8

2.6

12.6

13.3

1.4

1.3

Apollo Tyres

Neutral

187

9,503

12,576

12,978

16.8

16.1

22.3

19.9

8.4

9.4

1.4

1.3

17.2

13.4

0.8

0.9

Ceat

Neutral

1,196

4,839

6,041

6,597

14.3

14.2

101.5

116.6

11.8

10.3

2.4

2.0

20.0

19.1

1.0

0.8

JK Tyres

Neutral

103

2,335

7,446

7,669

15.2

14.0

19.6

18.4

5.3

5.6

1.3

1.1

25.2

19.5

0.7

0.6

Swaraj Engines

Neutral

869

1,079

593

677

14.5

14.8

51.2

60.8

17.0

14.3

4.0

3.5

23.3

24.8

1.7

1.4

Subros

Neutral

487

1,268

1,488

11.6

11.9

3.7

6.6

22.0

12.3

1.5

1.3

6.8

11.4

0.7

0.6

Indag Rubber

Neutral

181

476

283

329

17.0

17.2

13.0

15.4

14.0

11.8

3.1

2.5

21.8

21.6

1.4

1.2

Capital Goods

ACE

Neutral

385

660

839

4.7

8.2

1.0

3.9

39.0

10.0

1.2

1.1

3.2

11.3

0.7

0.6

BEML

Neutral

1,173

4,885

3,277

4,006

6.0

8.9

29.2

64.3

40.2

18.2

2.2

2.0

5.7

11.7

1.6

1.2

BGR Energy

Neutral

107

775

3,615

3,181

9.5

9.4

16.7

12.4

6.4

8.7

0.6

10.0

7.0

0.6

0.8

BHEL

Neutral

209

51,130

33,722

35,272

10.8

11.7

10.5

14.2

19.9

14.7

1.5

1.4

7.0

9.0

1.6

1.5

Blue Star

Accumulate

339

387

3,046

3,649

4,209

5.0

5.9

9.2

14.7

37.0

23.0

6.7

6.3

9.1

17.5

0.9

0.8

Crompton Greaves

Accumulate

181

204

11,328

13,484

14,687

4.9

6.2

4.5

7.1

40.2

25.5

2.8

2.7

7.2

10.8

1.0

0.9

Inox Wind

Buy

372

505

8,254

4,980

5,943

17.0

17.5

26.6

31.6

14.0

11.8

4.2

3.1

35.0

30.0

1.8

1.5

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Market Outlook

September 21, 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

149

3,832

8,791

9,716

6.1

6.8

5.4

8.2

27.6

18.2

2.8

2.5

10.0

14.0

0.7

0.6

Thermax

Neutral

908

10,814

6,413

7,525

7.4

8.5

30.5

39.3

29.8

23.1

4.6

4.0

15.0

17.0

1.7

1.4

Cement

ACC

Accumulate

1,378

1,548

25,876

11,856

14,092

14.5

17.8

47.6

76.1

29.0

18.1

3.0

2.7

10.6

15.7

2.0

1.7

Ambuja Cements

Accumulate

210

233

32,559

10,569

12,022

20.7

22.2

8.7

10.7

24.1

19.6

3.1

2.9

13.0

15.2

2.7

2.3

India Cements

Buy

112

2,281

4,716

5,133

15.9

16.9

3.7

7.5

20.1

9.9

0.7

3.8

7.3

0.8

0.7

JK Cement

Buy

614

767

4,295

4,056

4,748

14.5

17.0

22.6

41.1

27.2

15.0

2.4

2.2

9.3

15.3

1.5

1.2

J K Lakshmi Cement

Buy

369

430

4,341

2,947

3,616

16.7

19.9

11.5

27.2

32.1

13.6

3.0

2.6

9.8

20.8

1.9

1.5

Mangalam Cements

Neutral

232

618

1,053

1,347

10.5

13.3

8.4

26.0

27.6

8.9

1.2

1.1

4.3

12.5

1.0

0.7

Orient Cement

Accumulate

159

183

3,267

1,854

2,524

21.2

22.2

7.7

11.1

20.7

14.4

3.0

2.6

13.3

15.7

2.5

1.8

Ramco Cements

Accumulate

318

350

7,571

4,036

4,545

20.8

21.3

15.1

18.8

21.1

16.9

2.6

2.3

12.9

14.3

2.4

2.0

Shree Cement^

Neutral

12,085

42,101

7,150

8,742

26.7

28.6

228.0

345.5

53.0

35.0

7.8

6.5

15.7

20.3

5.6

4.5

UltraTech Cement

Accumulate

2,945

3,282

80,802

27,562

31,548

20.4

22.3

111.9

143.3

26.3

20.6

3.7

3.2

15.2

16.8

3.0

2.6

Construction

ITNL

Neutral

2,378

7,360

8,825

34.0

35.9

1.0

5.0

96.4

19.3

0.4

0.3

1.4

3.8

3.7

KNR Constructions

Neutral

528

1,484

915

1,479

14.3

13.9

20.3

37.2

26.0

14.2

2.4

2.1

9.6

15.6

1.7

1.1

Larsen & Toubro

Buy

1,540

2,013

143,322

68,920

82,446

10.9

11.5

57.0

73.0

27.0

21.1

2.5

2.3

13.6

15.5

2.3

1.9

Gujarat Pipavav Port

Neutral

178

8,622

721

784

53.1

53.6

8.2

9.1

21.7

19.6

3.5

2.8

20.0

18.3

11.5

10.2

MBL Infrastructures

Buy

245

360

1,014

2,313

2,797

12.2

14.6

19.0

20.0

12.9

12.2

1.3

1.2

11.3

10.6

1.1

1.0

Nagarjuna Const.

Neutral

3,683

7,892

8,842

8.3

9.1

2.4

5.3

27.6

12.5

1.1

1.0

4.2

8.6

0.7

0.6

PNC Infratech

Neutral

475

2,437

1,798

2,132

13.2

13.5

22.0

30.0

21.6

15.8

1.9

1.8

11.5

11.4

1.5

1.2

Simplex Infra

Neutral

289

1,432

6,241

7,008

10.4

10.7

20.0

36.0

14.5

8.0

1.2

1.1

6.8

11.1

0.7

0.6

Financials

Allahabad Bank

Neutral

4,391

8,438

9,521

2.8

21.9

27.0

3.5

2.9

0.4

0.3

10.2

11.5

Axis Bank

Buy

517

701

122,983

26,941

32,298

3.5

3.6

37.4

46.4

13.8

11.2

2.8

2.4

18.7

20.0

Bank of Baroda

Neutral

191

42,140

19,027

21,737

1.9

2.0

16.9

24.5

11.3

7.8

1.0

0.9

9.1

12.1

Bank of India

Neutral

141

9,342

16,438

18,706

1.9

2.0

19.2

40.9

7.3

3.4

0.4

4.5

9.1

Canara Bank

Neutral

277

14,271

15,491

17,269

2.0

61.6

70.9

4.5

3.9

0.5

0.4

10.5

11.1

Dena Bank

Neutral

2,188

3,498

3,977

2.1

2.3

7.8

10.7

5.0

3.7

0.4

0.3

6.5

8.4

Federal Bank

Neutral

10,833

3,527

4,135

3.0

3.1

5.2

6.7

12.1

9.4

1.3

1.1

10.8

12.7

HDFC

Neutral

1,210

190,813

10,883

12,799

3.5

3.4

43.0

50.6

28.2

23.9

5.6

5.0

25.9

26.7

HDFC Bank

Buy

1,048

1,255

263,850

38,059

46,851

4.4

4.5

50.0

62.7

21.0

16.7

3.7

3.1

18.8

20.2

www.angelbroking.com

Market Outlook

September 21, 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

ICICI Bank

Buy

278

370

161,474

35,810

41,871

3.4

3.5

22.0

26.2

12.6

10.6

2.2

1.8

15.0

15.6

IDBI Bank

Neutral

9,544

9,860

10,978

1.8

1.9

9.3

15.6

6.4

3.8

0.4

6.4

10.1

Indian Bank

Neutral

131

6,273

6,267

7,171

2.4

2.5

25.4

32.1

5.1

4.1

0.4

8.0

9.3

LIC Housing Finance

Buy

443

570

22,334

2,934

3,511

2.3

30.9

36.8

14.3

12.0

2.3

2.0

16.8

17.5

Oriental Bank

Neutral

133

3,985

7,730

8,595

2.4

2.5

38.8

47.4

3.4

2.8

0.3

8.6

9.8

Punjab Natl.Bank

Neutral

139

25,732

23,446

26,624

2.8

2.9

17.8

27.5

7.8

5.1

0.8

0.6

8.5

12.1

South Ind.Bank

Neutral

2,835

1,930

2,215

2.4

2.6

3.6

8.1

5.8

0.8

0.7

9.9

12.5

St Bk of India

Buy

242

307

183,367

83,847

96,307

2.8

20.1

25.1

12.1

9.7

1.3

1.2

11.5

13.1

Union Bank

Neutral

178

11,323

12,755

14,439

2.3

2.4

31.5

39.9

5.7

4.5

0.6

0.5

9.9

11.6

Vijaya Bank

Neutral

2,998

3,594

3,969

1.8

1.9

5.8

7.1

6.0

4.9

0.5

8.2

9.3

Yes Bank

Buy

770

953

32,244

7,204

9,078

3.2

57.8

69.5

13.3

11.1

2.4

2.0

19.6

22.6

FMCG

Asian Paints

Neutral

841

80,697

16,553

19,160

16.0

16.2

17.7

21.5

47.6

39.1

12.6

11.4

29.4

31.2

4.7

4.1

Britannia

Neutral

2,992

35,891

8,065

9,395

9.6

10.2

47.2

65.5

63.4

45.7

21.1

19.9

38.3

41.2

4.3

3.7

Colgate

Neutral

1,946

26,468

4,836

5,490

19.5

19.7

48.5

53.2

40.1

36.6

29.4

25.6

99.8

97.5

5.4

4.7

Dabur India

Neutral

276

48,523

9,370

10,265

17.1

17.2

7.3

8.1

37.7

34.1

11.4

9.2

33.7

30.6

5.1

4.6

GlaxoSmith Con*

Neutral

6,114

25,711

4,919

5,742

17.2

17.4

168.3

191.2

36.3

32.0

10.3

8.8

28.8

28.9

4.8

4.1

Godrej Consumer

Neutral

1,199

40,816

10,168

12,886

16.1

32.1

38.4

37.4

31.2

7.6

7.0

19.7

21.0

4.1

3.2

HUL

Neutral

798

172,751

34,940

38,957

17.5

17.7

20.8

24.7

38.4

32.3

42.7

34.1

110.5

114.2

4.8

4.2

ITC

Buy

319

409

255,546

41,068

45,068

37.8

37.4

13.9

15.9

22.9

20.0

7.7

6.8

34.1

33.8

5.9

5.3

Marico

Neutral

406

26,187

6,551

7,766

15.7

16.0

10.4

12.5

39.1

32.5

11.4

9.4

33.2

32.4

3.9

3.3

Nestle*

Accumulate

6,225

6,646

60,015

11,291

12,847

22.2

22.3

158.9

184.6

39.2

33.7

20.5

18.4

55.0

57.3

5.2

4.5

Tata Global

Buy

125

152

7,911

8,635

9,072

9.8

9.9

6.5

7.6

19.3

16.5

1.9

1.8

6.8

7.4

0.9

0.8

HCL Tech^

Buy

951

1,132

133,710

42,038

47,503

23.5

56.4

62.9

16.9

15.1

3.9

3.0

23.2

19.8

2.8

2.3

Infosys

Buy

1,105

1,306

253,755

60,250

66,999

28.0

58.3

63.7

19.0

17.3

4.0

3.4

20.9

19.7

3.5

3.0

TCS

Buy

2,554

3,168

500,289

108,420

123,559

28.8

28.7

127.2

143.9

20.1

17.8

8.0

7.4

39.9

41.8

4.2

3.6

Tech Mahindra

Buy

560

646

53,912

25,566

28,890

16.0

17.0

26.3

31.9

21.3

17.6

3.8

3.3

17.9

18.6

1.9

1.6

Wipro

Buy

590

719

145,789

52,414

58,704

23.7

23.8

38.4

42.3

15.4

14.0

3.0

2.7

19.5

18.0

2.4

1.9

Media

D B Corp

Accumulate

318

356

5,847

2,241

2,495

27.8

27.9

21.8

25.6

14.6

12.4

3.8

3.4

26.7

28.5

2.5

2.3

HT Media

Neutral

1,953

2,495

2,603

11.2

7.3

8.6

11.5

9.8

0.9

0.8

7.4

8.1

0.3

www.angelbroking.com

Market Outlook

September 21, 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

Jagran Prakashan

Accumulate

140

156

4,562

1,939

2,122

26.0

8.3

9.2

16.8

15.2

2.9

2.6

17.5

17.1

2.3

2.1

Sun TV Network

Neutral

348

13,722

2,779

3,196

70.2

70.5

22.8

27.3

15.3

12.8

3.8

3.4

26.7

28.3

4.7

4.1

Hindustan Media

Buy

218

292

1,599

920

1,031

20.0

19.2

20.9

11.4

10.4

1.9

1.6

16.4

15.3

1.3

1.1

Ventures

Metals & Mining

Coal India

Buy

343

400

216,683

72,015

78,415

21.2

21.5

21.7

25.3

15.8

13.6

5.4

5.3

33.1

39.1

2.2

2.1

Hind. Zinc

Neutral

135

57,211

15,258

16,495

44.2

45.6

17.6

19.2

7.7

7.1

1.2

1.1

15.9

15.3

1.4

1.0

Hindalco

Neutral

15,725

104,356

111,186

8.7

9.5

6.7

11.1

11.3

6.9

0.4

3.5

5.9

0.7

0.6

JSW Steel

Neutral

943

22,787

48,125

53,595

18.8

21.0

46.9

97.5

20.1

9.7

1.0

0.9

4.4

9.5

1.3

1.1

NMDC

Neutral

103

40,797

8,237

10,893

46.6

44.5

10.0

11.7

10.3

8.8

1.2

1.0

12.5

13.0

4.7

3.6

SAIL

Neutral

21,415

45,915

53,954

7.2

10.5

1.5

4.4

34.4

11.9

0.5

2.3

4.1

1.1

1.0

Vedanta

Neutral

29,336

71,445

81,910

26.2

26.3

12.9

19.2

7.7

5.2

0.5

7.2

8.9

0.9

0.7

Tata Steel

Neutral

229

22,197

136,805

149,228

11.3

11.9

26.4

36.8

8.7

6.2

0.7

0.6

6.0

8.0

0.7

0.6

Oil & Gas

Cairn India

Neutral

144

26,942

11,323

12,490

49.4

51.0

20.7

6.9

7.0

0.5

0.4

6.4

6.1

1.5

0.8

GAIL

Neutral

288

36,488

64,856

70,933

9.1

9.6

24.0

28.9

12.0

10.0

1.0

8.8

9.6

0.7

ONGC

Neutral

239

204,134

154,564

167,321

36.8

37.4

28.6

32.5

8.3

7.3

1.1

1.0

12.7

13.5

1.5

1.4

Petronet LNG

Buy

178

210

13,358

39,007

40,785

3.8

4.2

9.2

11.0

19.5

16.2

2.2

2.0

11.6

12.7

0.4

Indian Oil Corp

Buy

390

455

94,702

359,607

402,760

5.9

6.1

42.5

48.7

9.2

8.0

1.2

1.1

14.1

14.4

0.4

0.3

Reliance Industries

Neutral

895

289,872

313,085

362,904

13.1

13.8

78.4

92.9

11.4

9.6

1.2

1.1

10.8

11.6

1.4

1.2

Pharmaceuticals

Alembic Pharma

Neutral

671

12,655

2,601

3,115

21.2

20.2

20.8

23.9

32.3

28.1

10.4

7.8

37.2

31.8

4.9

4.0

Aurobindo Pharma

Buy

707

872

41,310

14,923

17,162

23.0

38.2

43.6

18.5

16.2

5.7

4.3

36.0

30.2

3.1

2.6

Aventis*

Neutral

4,169

9,601

2,156

2,455

15.1

16.8

109.7

133.9

38.0

31.1

5.2

4.3

18.4

22.5

4.2

3.5

Cadila Healthcare

Neutral

1,920

39,320

10,224

11,840

20.0

21.0

71.0

85.6

27.1

22.4

7.3

5.7

30.1

28.5

3.9

3.3

Cipla

Neutral

654

52,507

14,359

16,884

21.3

19.7

28.4

30.5

23.0

21.4

4.1

3.5

19.3

17.5

3.6

3.0

Dr Reddy's

Neutral

4,002

68,235

17,903

20,842

22.7

22.8

160.5

189.5

24.9

21.1

5.1

4.2

22.2

21.7

3.8

3.2

Dishman Pharma

Accumulate

255

290

2,058

1,716

1,888

20.2

16.3

21.6

15.7

11.8

1.5

1.3

9.7

11.7

1.4

1.1

GSK Pharma*

Neutral

3,337

28,266

2,870

3,158

20.0

22.1

59.5

68.3

56.1

48.9

16.5

17.0

28.5

34.3

9.3

8.5

Indoco Remedies

Neutral

333

3,071

1,088

1,262

18.2

13.1

15.5

25.4

21.5

5.0

4.2

21.2

21.1

2.9

2.5

Ipca labs

Accumulate

739

800

9,325

3,507

4,078

17.6

18.6

25.8

32.0

28.7

23.1

3.7

3.2

13.8

14.9

2.9

2.5

Lupin

Neutral

1,896

85,322

14,864

17,244

26.9

62.1

71.1

30.5

26.7

7.4

5.9

27.4

24.6

5.5

4.6

Sun Pharma

Neutral

905

217,807

28,163

32,610

25.8

30.7

17.4

26.9

52.0

33.7

4.9

4.3

13.0

16.6

7.2

6.0

www.angelbroking.com

Market Outlook

September 21, 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

Power

Tata Power

Neutral

17,391

35,923

37,402

22.6

22.8

4.1

5.2

15.9

12.5

1.2

1.1

7.5

9.3

1.4

1.3

NTPC

Buy

127

157

104,759

87,064

98,846

23.5

11.7

13.2

10.9

9.6

1.2

1.1

11.4

12.1

2.2

2.0

Power Grid

Buy

134

170

69,842

20,702

23,361

86.7

86.4

12.1

13.2

11.1

10.1

1.6

1.5

15.6

15.1

8.3

7.7

Telecom

Bharti Airtel

Neutral

356

142,367

101,748

109,191

32.1

31.7

12.0

12.5

29.7

28.5

2.0

1.9

6.9

6.7

2.0

1.8

Idea Cellular

Neutral

147

52,929

34,282

36,941

32.0

31.5

5.9

6.2

24.9

23.7

2.3

2.1

9.9

9.3

2.1

2.0

zOthers

Abbott India

Neutral

5,647

12,000

2,715

3,153

14.5

14.1

134.3

152.2

42.1

37.1

10.5

8.7

27.4

25.6

4.1

3.5

Bajaj Electricals

Buy

255

341

2,570

4,719

5,287

5.2

5.8

8.6

12.7

29.8

20.1

3.4

3.0

11.4

14.8

0.5

Finolex Cables

Neutral

233

3,566

2,728

3,036

10.8

11.0

14.4

16.8

16.2

13.9

2.5

2.1

15.2

15.3

1.1

0.9

Goodyear India*

Buy

558

655

1,287

1,953

1,766

12.4

12.0

67.4

59.6

8.3

9.4

2.1

1.8

27.7

20.2

0.4

Hitachi

Neutral

1,323

3,597

1,806

2,112

9.0

9.2

28.6

29.1

46.3

45.5

11.5

9.3

28.1

22.6

2.1

1.8

Jyothy Laboratories

Neutral

312

5,649

1,620

1,847

11.5

7.3

8.5

42.8

36.8

5.5

5.1

13.3

14.4

3.4

2.9

MRF

Accumulate

40,163

43,575

17,034

20,727

14,841

19.3

18.6

4,905.8

3,351.9

8.2

12.0

2.6

2.1

37.6

19.6

0.8

1.0

Page Industries

Neutral

12,996

14,496

1,929

2,450

19.8

20.1

229.9

299.0

56.5

43.5

24.9

17.3

52.1

47.1

7.5

5.9

Relaxo Footwears

Neutral

534

6,404

1,767

2,152

12.3

12.5

19.3

25.1

27.7

21.3

6.8

5.2

27.7

27.8

3.7

3.0

Siyaram Silk Mills

Buy

953

1,221

894

1,653

1,873

11.7

12.2

99.3

122.1

9.6

7.8

1.7

1.5

19.5

20.2

0.7

0.6

Styrolution ABS India*

Neutral

764

1,343

1,271

1,440

8.6

9.2

32.0

41.1

23.8

18.6

2.4

2.2

10.7

12.4

1.0

0.9

Tree House

Buy

354

449

1,497

259

324

56.8

17.0

21.7

20.8

16.3

2.1

1.9

10.1

11.5

5.7

4.7

TVS Srichakra

Buy

2,675

3,210

2,048

2,127

2,388

15.2

14.9

237.7

267.5

11.3

10.0

4.8

3.4

51.7

39.8

1.0

0.9

HSIL

Buy

266

434

1,921

2,085

2,436

18.5

18.6

21.7

28.9

12.3

9.2

1.2

1.1

10.0

12.1

1.1

0.8

Kirloskar Engines India

Neutral

337

4,870

2,634

3,252

10.1

12.0

10.9

17.4

30.9

19.3

3.4

3.1

11.4

16.8

1.5

1.1

Ltd

M M Forgings

Buy

551

797

665

563

671

22.1

22.9

51.0

66.5

10.8

8.3

2.3

1.8

23.1

24.1

1.3

1.1

Banco Products (India)

Neutral

119

848

1,208

1,353

11.0

12.3

10.8

14.5

11.0

8.2

1.3

1.1

11.9

14.5

0.7

0.6

Competent Automobiles Neutral

143

1,007

1,114

3.1

23.7

28.2

6.1

5.1

0.8

0.7

13.9

14.6

0.1

Nilkamal

Accumulate

927

1,005

1,383

1,948

2,147

10.6

10.3

60.0

67.0

15.4

13.8

2.4

2.1

16.8

16.1

0.8

0.7

Visaka Industries

Buy

132

166

210

1,158

1,272

8.6

9.5

23.7

32.7

5.6

4.1

0.6

0.5

10.1

12.5

0.4

0.3

Transport Corporation of

Buy

244

293

1,857

2,830

3,350

8.8

9.0

14.4

18.3

17.0

13.3

2.6

2.3

15.4

17.1

0.8

0.7

India

Elecon Engineering

Buy

780

1,452

1,596

14.0

14.7

4.4

6.2

16.2

11.5

1.4

1.2

8.6

11.2

0.8

0.7

Surya Roshni

Buy

121

183

531

2,992

3,223

8.3

8.5

14.7

18.3

8.2

6.6

0.8

0.7

9.8

11.0

0.5

0.4

MT Educare

Buy

128

169

512

286

366

18.3

17.7

7.7

9.4

16.6

13.7

3.5

3.1

20.2

21.1

1.7

1.3

www.angelbroking.com

Market Outlook

September 21, 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

zOthers

Radico Khaitan

Buy

112

1,128

1,565

1,687

11.9

12.4

5.4

6.6

15.7

12.9

1.3

1.2

8.0

9.0

1.2

Garware Wall Ropes

Buy

302

390

661

875

983

10.4

10.6

23.1

27.8

13.1

10.9

1.9

1.6

14.1

14.8

0.8

0.6

Wonderla Holidays

Buy

274

322

1,549

206

308

44.0

43.6

9.0

12.9

30.5

21.3

4.2

3.8

13.7

17.8

7.4

4.9

Linc Pen & Plastics

Buy

153

185

226

340

371

8.3

8.9

10.8

13.2

14.2

11.6

2.3

2.0

16.0

17.1

0.7

0.6

The Byke Hospitality

Accumulate

167

181

671

222

287

20.5

5.6

7.6

29.7

22.2

5.6

4.6

18.9

20.8

3.1

2.4

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on September 18, 2015

www.angelbroking.com

Market Outlook

September 21, 2015

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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