Market Outlook
April 22, 2016
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
BSE Sensex
0.1
36
25,880
Indian markets are expected to open flat tracking SGX Nifty.
Nifty
(0.0)
(3)
7,912
US markets closed lower after three days of positive move, as crude prices and
Mid Cap
(0.5)
(55)
11,009
Defensive sectors declined .Selling was witnessed selling in the telecom, utilities and
Small Cap
(0.5)
(58)
11,077
consumer staples segment. Dowjones closed down 114 points. Over the past one
month the market has been supported by formerly beaten down sectors indicating a
Bankex
2.0
363
18,951
possible broader investor churn in sectors like energy, materials and industrial.
European stocks fell on profit taking after three days of gains as sluggish British
Global Indices
Chg (%)
(Pts)
(Close)
retail sales data and mixed earnings reports induced caution among investors,
Dow Jones
(0.6)
(114)
17,982
heading into the ECB meeting later in the day. FTSE closed down 28 points while
Nasdaq
0.0
(2)
4,946
DAX closed marginally up by 14 points.
FTSE
(0.5 )
(28)
6,381
Indian indices closed flattish on Thursday. Banking stocks witnessed huge buying in
Nikkei
2.7
457
17,364
the initially hours after the news that RBI has allowed 20 accounts to be excluded
Hang Seng
1.8
386
21,622
from the AQR list. This lifted the overall markets however; the markets witnessed
Shanghai Com
(0.7)
(20)
2,953
selling at higher levels and closed flat. Imports results like Reliance Industries and
HDFC are set to declare their results for the quarters during the day, which should
give further direction to the markets.
Advances / Declines
BSE
NSE
Advances
1,063
631
News & Result Analysis
Declines
1,526
945
News Analysis: Viom stake sale fetches SREI Infra `2,931 cr
Detailed analysis on Pg2
Unchanged
158
67
Investor’s Ready Reckoner
Volumes (` Cr)
Key Domestic & Global Indicators
BSE
3,238
Stock Watch: Latest investment recommendations on 150+ stocks
NSE
20,564
Refer Pg5 onwards
Top Picks
Net Inflows (` Cr)
Net
Mtd
Ytd
CMP
Target
Upside
Company
Sector
Rating
FII
(11)
1,281
(25,635)
(`)
(`)
(%)
MFs
(300)
(615)
60,048
Amara Raja
Auto & Auto Ancillary
Buy
929
1,040
12.0
HCL Tech
IT
Buy
846
1,038
22.7
LIC Housing
Financials
Buy
465
592
27.2
Top Gainers
Price (`)
Chg (%)
Bharat Electronics
Capital Goods
Buy
1,169
1,414
20.9
Amtekauto
40
8.5
Navkar Corporation Others
Buy
189
265
40.4
Aplltd
611
6.9
More Top Picks on Pg4
Mrpl
70
6.5
Icicibank
253
6.3
Key Upcoming Events
Previous
Consensus
Pnb
89
5.1
Date
Region
Event Description
Reading
Expectations
Apr 22 Germany
PMI Services
55.1
55.1
Top Losers
Price (`)
Chg (%)
Apr25 US
New Home sales(thousand)
512
525
Wipro
559
(7.0)
Apr 26 US
Consumer Confidence
96.2
95.8
Network18
43
(4.5)
Apr
Euro Zone
GDP QoQ
0.30
6.(6.(
Sobha
300
(4.2)
More Events on Pg5
Pageind
12,975
(4.1)
Crisil
2,063
(4.1)
As on April 21, 2016
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Market Outlook
April 22, 2016
Viom's stake sale fetches SREI `2,931 cr
SREI Infrastructure Finance has announced on Thursday that the stake sale in Viom
Networks to Tower Corporation was complete. The overall transaction amounting
to `7,600cr, resulted in a total foreign direct investment inflow of `5856cr in to the
telecom infrastructure segment of the country, of which SREI received a total of
`2,931cr.
SREI along with other shareholders of Viom had entered into a definite agreement
to with ATC for selling its stake in Viom, which owns and operates over 42,000
wireless communication towers across India.Sunil Kanoria, vice-chairman of Srei
and vice-chairman & managing director of Viom, said: “Post the receipt of all
regulatory approvals, the transaction has been completed and we have now
received the entire consideration for our stake sale. This will lead to substantial
cash inflow into Srei, which will lower its debt and reduce interest cost, thereby
augmenting capital and improving future profitability.”
SRE is one of India’s largest private sector integrated infrastructure institutions,
consistently delivering innovative solutions in the infrastructure sector. The
company’s business includes Infrastructure project financing, Advisory &
Development, Infrastructure Equipment Finance, Alternate Investment Funds,
Capital Markets and Insurance Broking.
At the CMP of `63.7 the stock is trading at 0.9x its 9mFY16 Book value of `72. We
don’t have rating on the stock; however feel that this deal is likely to be beneficial
for the company.
IndusInd Bank Q4 net profit up 25%
IndusInd Bank has reported a 25% jump in PAT to `620 cr in 4QFY16compared to
`495 cr in 4QFY15. The rise was on the back of higher net interest and other
income. For the full year of 2015-16, net profit increased 27% to `2,286 cr, as
compared to `1,794 cr in FY15.Net interest income grew 37% to `1,268 cr as
compared to `925 cr a year before. The management said this was fuelled by the
retail (small borrower) segment. In FY16, credit growth in this segment improved
by 29 % and by 28 % in the corporate segment. Other income was up 31 % to
`913 cr.
IndusInd has been one of the most consistent performers among the pvt banks. At
the CMP of `971 the stock is trading at 3.2 its FY16 Book Value. We don’t have a
rating on the stock.
Economic and Political News
10 mn give up LPG subsidy, says Government
Domestic Air traffic grew by 24.6% says IATA
Steel companies ask for antidumping duty on cold rolled steel
DBT for fertiliser this financial year
Corporate News
Viom’s stake sale fetches SREI Infra `2931 cr.
Britain might take 25% equity stake in Tata Steel UK
VST Industries’s 4QFY16 PAT grows by 19% to `49 cr
www.angelbroking.com
Market Outlook
April 22, 2016
Quarterly Bloomberg Brokers Consensus Estimate
HDFC Bank Ltd - April 22, 2016
Particulars (` cr)
4QFY16E
4QFY15
y-o-y (%)
3QFY16
q-o-q (%)
PAT
3,385
2,807
20.6
3,357
0.9
Reliance Industries Ltd- April 22, 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)
CAIRN India Ltd - April 22, 2016
Particulars (` cr)
4QFY16E
4QFY15
y-o-y (%)
3QFY16
q-o-q (%)
Net sales
1,636
2,677
(38.9)
2,039
(19.8)
EBITDA
384
2,973
(87.1)
666
(42.3)
EBITDA margin (%)
23.5
111.0
32.7
Net profit
(161)
264
0.0
9
0.0
Maruti Suzuki India Ltd - April 26, 2016
Particulars (` cr)
4QFY16E
4QFY15
y-o-y (%)
3QFY16
q-o-q (%)
Net sales
14,696
13,273
10.7
14,768
(0.5)
EBITDA
2,200
2,164
1.6
2,170
1.4
EBITDA margin (%)
15.0
16.3
14.7
Net profit
1,190
1,284
(7.3)
1,019
16.7
Axis Bank Ltd - April 26, 2016
Particulars ((` cr)
4QFY16E
4QFY15
y-o-y (%)
3QFY16
q-o-q (%)
PAT
2,341
2,181
7.3
2,175
7.6
www.angelbroking.com
Market Outlook
April 22, 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
15,866
929
1,040
12.0
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
28,063
1,169
1,414
20.9
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
1,19,297
846
1,038
22.7
the bad news.
Strong visibility for a robust 20% earnings trajectory, coupled
HDFC Bank
2,75,838
1,091
1,262
15.7
with high quality of earnings on account of high quality retail
business and strategic focus on highly rated corporates.
Back on the growth trend, expect a long term growth of 14%
Infosys
2,82,617
1,226
1,347
9.8
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
23,469
465
592
27.2
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
12,027
1,002
1,089
8.7
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
3,748
417
458
9.9
growth. EMPPAC division's profitability to improve once
operating environment turns around.
With a focus on the low and medium income (LMI) consumer
Dewan Housing
5,988
205
270
31.6
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
2,668
81
93
14.7
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
5,713
175
189
8.2
radio business (Radio City) would also boost the company's
revenue growth.
Speedier execution and speedier sales, strong revenue visibilty
Mahindra Lifespace
1,814
442
554
25.3
in short-to-long run, attractive valuations
Massive capacity expansion along with rail advantage at ICD
Navkar Corporation
2,691
189
265
40.4
as well CFS augurs well for the company
Earnings boost on back of stable material prices and
Radico Khaitan
1,244
94
156
66.8
favourable pricing environment. Valuation discount to peers
provides additional comfort
Strong brands and distribution network would boost growth
Siyaram Silk Mills
1,029
1,098
1,354
23.3
going ahead. Stock currently trades at an inexpensive
valuation.
Source: Company, Angel Research
www.angelbroking.com
Market Outlook
April 22, 2016
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
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