Market Outlook

January 25, 2016

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

BSE Sensex

2.0

473

24,436

Indian markets are expected to open in the green tracking the SGX Nifty.

Nifty

2.0

146

7,422

Oil prices rallied 10% as frigid weather across U.S.A and Europe boosted the energy

Mid Cap

1.9

190

10,193

demand. Bounce back in the oil prices led to 2% rally in benchmark S&P 500, which

registered its first positive week in 2016. Energy stocks led the rally, with Exxon Mobil

Small Cap

2.2

233

10,598

ending up 3.3%. Also, S&P Energy Index .SPNY was up 4.3%. Index rally was

Bankex

2.8

482

17,625

supported by 5.3% run-up in Apple stock, ahead of its quarterly results.

FTSE 100 reported its first weekly gain in a month, as oil prices rebounded from

Global Indices

Chg (%)

(Pts)

(Close)

multiyear lows and investors cheered the prospect of more stimulus from European

Dow Jones

1.3

211

16,094

Central Bank. Amongst the key gainers were BP (up 3%), BG Group (up 5%) and

Nasdaq

2.6

119

4,591

Royal Dutch (up 5%).

FTSE

2.2

126

5,900

Indian stock markets ended up 2% on Friday, their biggest single-day % gain since

Nikkei

5.9

941

16,959

October as hints of more stimulus measures from European Central Bank lifted the

Hang Seng

2.9

538

19,081

global markets. Most of the beaten down Banking, Auto, Oil and Infra stocks saw

short covering and value buying.

Shanghai Com

1.3

2,917

News & Result Analysis

Advances / Declines

BSE

NSE

 Inox Wind Infra Services acquires Vinirrmaa Energy

Advances

2,070

839

 ONGC gets green nod for `53,000cr KG basin Infra project

Detailed analysis on Pg2

Declines

616

719

Unchanged

147

Investor’s Ready Reckoner

Key Domestic & Global Indicators

Volumes (` Cr)

Stock Watch: Latest investment recommendations on 150+ stocks

BSE

3,498

Refer P4 onwards

NSE

17,412

Top Picks

CMP

Target

Upside

Company

Sector

Rating

Net Inflows (` Cr)

Net

Mtd

Ytd

(`)

(%)

FII

(761)

(8,251)

7,459

Amara Raja Batteries Auto & Auto Ancillary

Buy

820

1,040

26.8

MFs

810

2,764

71,592

HCL Tech

Buy

839

1,132

34.9

Larsen & Toubro

Construction

Buy

1,142

1,646

44.1

LIC Housing Finance Financials

Buy

484

592

22.3

Top Gainers

Price (`)

Chg (%)

Navkar Corporation Others

Buy

197

265

34.9

Rallis

161

12.0

More Top Picks on Pg3

Jubilant

337

8.3

Gail

367

8.0

Key Upcoming Events

Consensus

Hdil

7.8

Date

Region

Event Description

Reading

Expectations

Religare

308

7.7

Jan 26

USA

Consumer Confidence

96.50

97.00

Jan 27

USA

New Home Sales

490.00

500.00

Top Losers

Price (`)

Chg (%)

Jan 28

GDP (YoY)

2.10

1.90

USA

FOMC rate decision

0.50

Jetairways

617

(6.4)

Idea

107

(6.2)

M&Mfin

200

(3.9)

Oberoirlty

226

(3.4)

Bhartiartl

299

(3.4)

As on January 22, 2015

www.angelbroking.com

Market Outlook

January 25, 2016

Inox Wind Infra Services acquires Vinirrmaa Energy

In continuation to its expansion strategy, Inox Wind Infrastructure Services Ltd, a

wholly owned subsidiary of Inox Wind, has acquired 8-year old Hyderabad based

Vinirrmaa Energy Generation Pvt. Ltd for an undisclosed amount. This acquisition

comes in to effect from January 23, 2016.

Post completion of this transaction, we expect Vinirrmaa Energy Generation Pvt.

Ltd. to have become a step down Subsidiary of Inox Wind Limited.

We expect this acquisition to be smaller in size and not have any material impact

on the financials of the company.

At current market price of `309, Inox is trading at FY2017E P/E multiple of 9.8x.

We continue to maintain BUY on the stock with target price of `458.

ONGC gets green nod for `53,000cr KG basin Infra project

ONGC has got Environmental Clearance (EC) for drilling 45 development wells

and other related infrastructure involving cost of over Rs53,000cr in the Krishna-

Godavari basin, Andhra Pradesh. This project would be implemented in northern

discovery area of NELP-I offshore block KG-DW N-98/2 that covers an area of

7,294.6 sq km and is located within 25-80 km from nearest coast.

Entire block is divided in to Northern Discovery Area (NDA), which has deep

waters with depth of up to 1,800 meters and other one is Southern Discovery Area

(SDA) which has ultra-deep waters having depth of up to 3,100 meters.

It is expected that the proposed development drilling and subsequent development

of fields would add to 51.33 bn cubic meters of gas production over 16 years

period and 26.71 mn cubic meters of oil in 12 years period.

ONGC's is expected to drill 45 development wells, set up FPSO (Floating

Production Storage and Offloading) facility, offshore fixed platform, subsea

production systems and subsea pipelines connecting landfall point to existing

onshore terminal for custody transfer to GAIL.

This is a positive development for the company and it would contribute to the

profitability in the long-run. We continue to maintain Neutral on the stock.

Economic and Political News



`60,000cr Rafale jet deal on "right track": French President Francois Hollande

 Drug manufacturers urge govt. to reconsider hike in product approval fee

 Coffee production to reach 3,80,600 tn in 2015-16

Corporate News

 Nalco to scan sites in Iran, Qatar for smelter unit next month

 Mahindra, Airbus sign pact to form JV for military helicopters

 Adani-IOC, GAIL, Gujarat Gas vie for CNG licence

 SC restores possession of mine to Rajasthan govt from UltraTech

www.angelbroking.com

Market Outlook

January 25, 2016

Top Picks

Large Cap

arket Cap

arget

Upsid

Company

Rationale

(` Cr)

(`)

(%)

To outpace battery industry growth due to better technological

Amara Raja Batteries

14,007

820

1,040

26.8

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

24,389

111

29.5

Focus on exports and LCV's provides additional growth

avenue.

The stock is trading at attractive valuations and is factoring all

HCL Tech

1,18,298

839

1,132

34.9

the bad news.

Strong visibility for a robust 20% earnings trajectory, coupled

HDFC Bank

2,60,160

1,030

1,262

22.5

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

2,60,910

1,136

1,347

18.6

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

1,06,345

1,142

1,646

44.1

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

24,423

484

592

22.3

post a healthy loan book which is likely to reflect in a strong

earnings growth.

Source: Company, Angel Research

Mid Cap

arket Cap

arget

Upsid

Company

Rationale

(` Cr)

(`)

(%)

Favourable outlook for the AC industry to augur well for

Cooling products business which is out pacing the market

Blue Star

3,155

351

439

25.1

growth. EMPPAC division's profitability to improve once

operating environment turns around.

Change in business focus towards high-margin chronic &

Garware Wall Ropes

770

352

473

34.5

lifestyle segments and increasing penetration in Europe and

Economic recovery to have favourable impact on advertising &

circulation revenue growth. Further, the acquisition of a radio

Jagran Prakashan

5,365

164

189

15.2

business (Radio City) would also boost the company's revenue

growth.

Massive capacity expansion along with rail advantage at ICD

Navkar Corporation

2,802

197

265

34.9

as well CFS augurs well for the company

Earnings boost on back of stable material prices and

Radico Khaitan

1,489

112

156

39.3

favourable pricing environment. Valuation discount to peers

provides additional comfort

Strong brands and distribution network would boost growth

Siyaram Silk Mills

985

1,051

1,354

28.8

going ahead. Stock currently trades at an inexpensive

valuation.

Structural shift in the Lighting industry towards LED lighting will

Surya Roshni

623

142

201

41.4

drive growth.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

January 25, 2016

Key Upcoming Events

Result Calendar

Date

Company

Jan 25, 2016

Subros, HDFC Bank, Hindustan Media Ventures, MRF, Nilkamal

Jan 27, 2016

Colgate, Godrej Consumer, HT Media, Kirloskar Engines India Ltd, L G Balakrishnan & Bros, Power Grid Corpn

Maruti, ICICI Bank, Syndicate Bank, Dabur India, Sesa Goa, Jyothy Laboratories, Tide Water Oil India, Glenmark

Jan 28, 2016

Pharma.

United Phosphorus, TVS Motor, Siemens, Thermax, Blue Star, Yes Bank, Jagran Prakashan, PVR, JSW Steel , Banco,

Jan 29, 2016

Elecon Engineering, Indoco Remedies, NTPC

Jan 30, 2016

IDFC, Shriram Trans., Electrosteel Castings, Relaxo

Feb 1, 2016

Tech Mahindra, Transport Corporation of India

Feb 2, 2016

Amara Raja Batteries, Cummins India, Crompton Greaves

Feb 3, 2016

Mangalam Cement, Hexaware, IOC

Feb 4, 2016

Bajaj Auto, ABB, J K Lakshmi Cements, Mphasis, Tata Steel, Visaka Industries, Aventis

Feb 5, 2016

Lupin, Cadila Healthcare, Tata Power Co., PTC India

Source: Bloomberg, Angel Research

Global economic events release calendar

Date

Time

Country

Event Description

Unit

Period

Bloomberg Data

Last Reported Estimated

Jan 26, 2016

8:30PM US

Consumer Confidence

S.A./ 1985=100

Jan

96.50

Jan 27, 2016

8:30PM US

New home sales

Thousands

Dec

490.00

500.00

Jan 28, 2016

3:00PM UK

GDP (YoY)

% Change

4Q A

2.10

1.90

12:30AM US

FOMC rate decision

Jan 27

0.50

Jan 29, 2016

7:00PM US

GDP Qoq (Annualised)

% Change

4Q A

2.00

0.80

Feb 1, 2016

3:00PM UK

PMI Manufacturing

Value

Jan

51.90

6:30AM China

PMI Manufacturing

Value

Jan

49.70

49.50

Feb 2, 2016

2:25PM Germany

Unemployment change (000's)

Thousands

Jan

(14.00)

11:00AM India

RBI Reverse Repo rate

Feb 2

5.75

11:00AM India

RBI Repo rate

Feb 2

6.75

11:00AM India

RBI Cash Reserve ratio

Feb 2

4.00

Feb 4, 2016

5:30PM UK

BOE Announces rates

% Ratio

Feb 4

0.50

Feb 5, 2016

7:00PM US

Change in Nonfarm payrolls

Thousands

Jan

292.00

7:00PM US

Unnemployment rate

Jan

5.00

Source: Bloomberg, Angel Research

Market Outlook

January 25, 2016

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

9.0

8.4

12.0

9.9

7.5

10.0

8.0

7.4

7.0

6.7

8.0

6.3

6.6

7.0

6.4

6.0

4.8

4.2

4.3

3.8

6.0

2.8

3.0

4.0

2.5

5.0

4.7

5.0

2.0

4.0

(2.0)

3.0

(4.0)

(3.2)

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

5.0

4.4

52.0

3.7

4.0

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

0.0

8.00

(5.0)

7.50

7.00

(10.0)

6.50

(15.0)

6.00

5.50

(20.0)

5.00

(25.0)

4.50

4.00

(30.0)

3.50

(35.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Market Outlook

January 25, 2016

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

38,031

(16.1)

(19.4)

(21.6)

Russia

Micex

1,718

(6.4)

(5.9)

3.4

India

Nifty

7,422

(5.8)

(11.3)

(13.9)

China

Shanghai Composite

2,917

(19.4)

(12.9)

(9.3)

South Africa

Top 40

42,953

(7.4)

(12.8)

(3.4)

Mexico

Mexbol

41,621

(6.1)

(7.9)

(2.2)

Indonesia

LQ45

779

1.7

(0.1)

(14.4)

Malaysia

KLCI

1,625

(1.1)

(4.7)

(6.9)

Thailand

SET 50

794

(7.3)

(16.0)

(23.8)

USA

Dow Jones

16,094

(11.2)

(8.4)

(10.2)

FTSE

5,900

(2.5)

(7.1)

(13.9)

Japan

Nikkei

16,959

(12.4)

(7.3)

1.0

Germany

DAX

9,765

(10.1)

(7.1)

(10.0)

France

CAC

4,337

(11.8)

(11.7)

(10.8)

Source: Bloomberg, Angel Research

www.angelbroking.com

Stock Watch

January 25, 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

161

3,139

2,097

2,415

14.4

9.5

11.0

17.0

14.7

3.4

2.9

21.1

21.3

1.5

1.3

United Phosphorus

Buy

399

510

17,101

13,698

15,752

17.6

32.1

38.5

12.4

10.4

2.4

2.0

21.4

21.3

1.4

1.1

Auto & Auto Ancillary

Ashok Leyland

Buy

111

24,389

17,995

21,544

11.4

11.6

3.4

4.7

25.2

18.2

4.4

4.1

17.7

22.2

1.3

1.1

Bajaj Auto

Buy

2,318

2,728

67,064

23,695

27,298

21.3

20.4

134.6

151.5

17.2

15.3

5.5

4.7

31.8

30.6

2.4

2.0

Bharat Forge

Buy

799

943

18,593

7,867

8,881

20.0

20.3

34.4

41.0

23.2

19.5

4.5

3.7

21.1

20.9

2.5

2.2

Eicher Motors

Buy

16,472

19,036

44,729

15,379

16,498

15.6

16.6

473.2

574.8

34.8

28.7

12.9

9.6

36.7

33.2

2.8

2.6

Gabriel India

Buy

101

1,193

1,415

1,544

8.7

9.0

4.6

5.4

18.1

15.4

3.3

2.9

18.1

18.9

0.8

0.7

Hero Motocorp

Accumulate

2,586

2,774

51,640

28,561

31,559

14.7

151.1

163.2

17.1

15.9

6.6

5.7

38.7

35.6

1.6

1.5

Jamna Auto Industries Neutral

143

1,144

1,292

1,486

9.3

9.8

6.0

7.5

23.9

19.1

5.0

4.2

20.7

21.8

1.0

0.8

L G Balakrishnan & Bros Neutral

469

737

1,254

1,394

11.6

11.8

35.9

41.7

13.1

11.3

1.8

1.6

13.5

13.8

0.7

0.6

Mahindra and Mahindra Buy

1,191

1,449

74,000

39,031

44,440

13.8

13.9

57.9

67.6

20.6

17.6

3.3

2.9

16.1

16.6

1.5

1.3

Maruti

Neutral

4,107

124,075

57,865

68,104

16.4

16.7

176.3

225.5

23.3

18.2

4.5

3.9

19.4

21.2

1.9

1.6

Minda Industries

Accumulate

787

867

1,249

2,567

2,965

8.0

8.3

46.1

57.8

17.1

13.6

2.9

2.4

16.7

17.3

0.6

0.5

Motherson Sumi

Buy

257

313

33,961

39,343

45,100

8.8

9.1

10.1

12.5

25.4

20.5

8.1

6.3

35.3

34.4

0.9

0.8

Rane Brake Lining

Buy

310

366

245

454

511

11.1

11.4

23.8

28.1

13.0

11.0

1.9

1.7

14.2

15.3

0.7

0.6

Setco Automotive

Neutral

450

594

741

12.7

13.7

1.7

3.2

19.8

10.5

2.1

1.8

10.4

16.9

1.2

1.0

Tata Motors

Buy

339

409

97,977

266,022

312,667

12.8

13.1

26.3

38.3

12.9

8.9

1.7

1.4

8.4

12.1

0.5

TVS Motor

Buy

285

338

13,542

11,569

13,648

7.3

8.7

10.3

16.1

27.7

17.7

6.9

5.4

24.8

30.5

1.2

1.0

Amara Raja Batteries

Buy

820

1,040

14,007

4,892

5,871

17.4

17.6

28.8

37.1

28.5

22.1

6.7

5.3

23.4

24.1

2.8

2.3

Exide Industries

Buy

125

162

10,608

6,950

7,784

14.4

14.8

6.6

7.3

18.9

17.1

2.4

2.2

12.6

12.8

1.2

1.1

Apollo Tyres

Buy

141

171

7,167

12,146

12,689

16.8

16.0

21.2

19.0

6.6

7.4

1.1

1.0

16.5

13.0

0.7

Ceat

Buy

922

1,119

3,731

6,041

6,597

14.1

13.7

99.5

111.9

9.3

8.2

1.8

1.5

19.6

18.5

0.8

0.7

JK Tyres

Neutral

1,951

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

897

1,115

552

630

14.2

14.7

44.6

54.1

20.1

16.6

4.7

4.3

23.2

25.6

1.9

1.6

Subros

Neutral

532

1,268

1,488

11.6

11.9

3.7

6.6

24.0

13.4

1.6

1.5

6.8

11.4

0.7

0.6

Indag Rubber

Neutral

185

486

283

329

17.0

17.2

13.0

15.4

14.3

12.0

3.1

2.6

21.8

21.6

1.4

1.2

Capital Goods

ACE

Neutral

384

660

839

4.7

8.2

1.0

3.9

38.8

10.0

1.2

1.1

3.2

11.3

0.7

0.6

BEML

Neutral

1,099

4,577

3,277

4,006

6.0

8.9

29.2

64.3

37.6

17.1

2.1

1.9

5.7

11.7

1.5

1.2

Bharat Electronics

Buy

1,194

1,414

28,648

7,737

8,634

16.8

17.2

54.0

61.0

22.1

19.6

3.2

2.8

39.3

45.6

2.8

2.4

www.angelbroking.com

Stock Watch

January 25, 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

284

353

9,409

5,363

5,963

8.0

9.1

11.0

13.8

25.9

20.6

4.0

3.5

16.2

17.9

1.7

1.5

BGR Energy

Neutral

109

789

3,615

3,181

9.5

9.4

16.7

12.4

6.5

8.8

0.6

10.0

7.0

0.6

0.8

BHEL

Neutral

147

36,053

33,722

35,272

10.8

11.7

10.5

14.2

14.0

10.4

1.0

7.0

9.0

1.1

Blue Star

Buy

351

439

3,155

3,548

3,977

6.3

6.9

13.7

17.2

25.6

20.4

6.4

4.2

26.1

25.4

1.0

0.8

Crompton Greaves

Buy

171

204

10,739

13,484

14,687

4.9

6.2

4.5

7.1

38.1

24.1

2.7

2.5

7.2

10.8

0.9

0.8

Inox Wind

Buy

310

458

6,877

4,980

5,943

17.0

17.5

26.6

31.6

11.7

9.8

3.5

2.6

35.0

30.0

1.5

1.2

KEC International

Neutral

116

2,990

8,791

9,716

6.1

6.8

5.4

8.2

21.5

14.2

2.2

2.0

10.0

14.0

0.6

0.5

Thermax

Neutral

839

9,999

6,413

7,525

7.4

8.5

30.5

39.3

27.5

21.4

4.2

3.7

15.0

17.0

1.5

1.3

Cement

ACC

Buy

1,242

1,630

23,317

13,151

14,757

16.4

18.3

63.9

83.4

19.4

14.9

2.5

2.3

13.3

16.1

1.6

1.4

Ambuja Cements

Buy

193

233

29,936

11,564

12,556

19.4

20.7

8.9

10.1

21.7

19.1

2.7

2.6

12.8

13.8

2.2

2.0

HeidelbergCement

Neutral

1,568

1,772

1,926

13.3

15.4

1.0

3.0

69.2

23.1

1.8

1.6

2.6

7.9

1.5

1.3

India Cements

Buy

112

2,699

4,216

4,840

18.0

19.5

4.0

9.9

22.0

8.9

0.9

0.8

4.0

9.5

1.0

0.8

JK Cement

Buy

509

744

3,561

3,661

4,742

10.1

15.8

18.0

61.0

28.3

8.4

2.0

1.8

7.5

22.9

1.4

1.1

J K Lakshmi Cement

Buy

299

430

3,514

2,947

3,616

16.7

19.9

11.5

27.2

26.0

11.0

2.5

2.1

9.8

20.8

1.6

1.3

Mangalam Cements

Neutral

178

475

1,053

1,347

10.5

13.3

8.4

26.0

21.2

6.8

0.9

0.8

4.3

12.5

0.8

0.6

Orient Cement

Buy

143

183

2,931

1,854

2,524

21.2

22.2

7.7

11.1

18.6

12.9

2.7

2.3

13.3

15.7

2.3

1.6

Ramco Cements

Neutral

375

8,928

4,036

4,545

20.8

21.3

15.1

18.8

24.8

20.0

3.0

2.7

12.9

14.3

2.7

2.3

Shree Cement^

Neutral

9,965

34,716

7,150

8,742

26.7

28.6

228.0

345.5

43.7

28.8

6.4

5.4

15.7

20.3

4.6

3.7

UltraTech Cement

Buy

2,719

3,282

74,613

25,021

30,023

19.1

21.6

89.0

132.0

30.6

20.6

3.5

3.1

12.2

15.9

3.0

2.6

Construction

ITNL

Neutral

2,370

7,360

8,825

34.0

35.9

7.0

9.0

10.3

8.0

0.4

0.3

3.2

3.7

3.6

KNR Constructions

Buy

486

673

1,367

937

1,470

14.3

14.0

33.5

38.6

14.5

12.6

2.2

1.9

15.4

1.5

1.0

Larsen & Toubro

Buy

1,142

1,646

106,345

65,065

77,009

11.5

11.7

61.5

65.6

18.6

17.4

1.9

1.7

13.4

14.0

1.8

1.6

Gujarat Pipavav Port

Neutral

149

7,198

629

684

51.0

52.2

6.4

5.9

23.3

25.2

3.1

2.8

15.9

12.7

11.1

10.0

MBL Infrastructures

Buy

172

285

713

2,313

2,797

12.2

14.6

19.0

20.0

9.1

8.6

0.9

11.3

10.6

1.0

0.9

Nagarjuna Const.

Neutral

3,669

7,892

8,842

8.8

9.1

3.0

5.3

22.0

12.5

1.1

1.0

5.0

8.5

0.7

0.6

PNC Infratech

Accumulate

488

558

2,504

1,873

2,288

13.2

13.5

24.0

32.0

20.3

15.3

2.0

1.8

12.1

12.3

1.4

1.2

Simplex Infra

Neutral

281

1,391

5,955

6,829

10.3

10.5

16.0

31.0

17.6

9.1

0.9

5.3

9.9

0.7

0.6

Power Mech Projects

Neutral

616

907

1,539

1,801

12.8

12.7

59.0

72.1

10.5

8.6

1.6

1.3

18.6

16.8

0.6

0.5

Sadbhav Engineering

Neutral

303

5,198

3,481

4,219

10.7

10.8

8.0

12.0

37.9

25.3

3.5

3.1

10.3

13.5

1.8

1.5

www.angelbroking.com

Stock Watch

January 25, 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

NBCC

Buy

916

1,089

10,992

7,382

9,506

7.7

8.6

39.8

54.4

23.0

16.8

5.6

4.4

26.7

29.1

1.2

0.9

MEP Infra

Neutral

705

1,956

1,876

28.1

30.5

1.3

3.0

33.4

14.5

7.0

4.7

21.2

32.8

1.8

SIPL

Neutral

2,913

675

1,042

62.4

64.7

3.1

3.5

16.0

10.8

Financials

Allahabad Bank

Neutral

3,222

8,569

9,392

2.8

2.9

16.3

27.5

3.3

2.0

0.3

0.2

7.6

11.9

Axis Bank

Buy

424

531

100,903

26,473

31,527

3.5

3.6

35.7

43.5

11.9

9.8

2.3

2.0

17.9

18.9

Bank of Baroda

Neutral

130

30,012

18,485

21,025

1.9

2.0

13.5

21.1

9.7

6.2

0.8

0.7

7.3

10.6

Bank of India

Neutral

101

8,180

15,972

17,271

1.9

2.0

15.3

33.4

6.6

3.0

0.3

3.6

7.6

Canara Bank

Neutral

186

10,119

15,441

16,945

2.0

2.1

46.6

70.4

4.0

2.7

0.4

0.3

8.0

11.2

Dena Bank

Neutral

2,291

3,440

3,840

2.1

2.3

7.3

10.0

4.9

3.5

0.4

0.3

6.1

7.9

Federal Bank

Neutral

8,347

3,477

3,999

3.0

5.0

6.2

9.7

7.8

1.0

0.9

10.6

11.9

HDFC

Neutral

1,158

182,793

10,358

11,852

3.3

41.1

47.0

28.2

24.6

5.4

4.9

24.7

24.9

HDFC Bank

Buy

1,030

1,262

260,160

38,309

47,302

4.3

49.3

61.1

20.9

16.9

3.6

3.1

18.5

19.7

ICICI Bank

Buy

233

304

135,282

34,279

39,262

3.3

21.0

24.4

11.1

9.6

1.9

1.6

14.4

14.7

IDBI Bank

Neutral

11,400

9,625

10,455

1.8

8.5

14.2

7.0

4.2

0.4

5.9

9.3

Indian Bank

Neutral

4,421

6,160

6,858

2.5

24.5

29.8

3.8

3.1

0.3

7.7

8.6

LIC Housing Finance

Buy

484

592

24,423

3,101

3,745

2.5

33.0

40.2

14.7

12.1

2.7

2.3

19.7

20.5

Oriental Bank

Neutral

110

3,295

7,643

8,373

2.4

37.2

45.4

3.0

2.4

0.3

0.2

8.2

9.4

Punjab Natl.Bank

Neutral

18,173

23,638

26,557

2.8

17.9

27.2

5.2

3.4

0.5

0.4

8.5

12.0

South Ind.Bank

Neutral

2,484

1,965

2,185

2.5

3.3

7.4

5.6

0.7

9.5

11.7

St Bk of India

Buy

184

237

143,068

82,520

93,299

2.7

2.8

20.0

24.5

9.2

7.5

1.0

0.9

11.5

12.8

Union Bank

Neutral

120

8,273

12,646

14,129

2.3

2.4

31.0

39.1

3.9

3.1

0.4

9.8

11.4

Vijaya Bank

Neutral

2,625

3,536

3,827

1.9

5.5

6.7

5.5

4.6

0.5

0.4

7.8

8.8

Yes Bank

Buy

684

825

28,690

7,190

9,011

3.2

3.3

58.2

69.7

11.7

9.8

2.1

1.8

19.2

19.6

FMCG

Asian Paints

Neutral

870

83,402

16,553

19,160

16.0

16.2

17.7

21.5

49.2

40.4

13.1

11.8

29.4

31.2

4.9

4.2

Britannia

Neutral

2,618

31,408

8,065

9,395

9.6

10.2

47.2

65.5

55.5

40.0

18.4

17.4

38.3

41.2

3.7

3.2

Colgate

Neutral

883

24,012

4,836

5,490

19.5

19.7

48.5

53.2

18.2

16.6

13.3

11.6

99.8

97.5

4.9

4.3

Dabur India

Accumulate

242

267

42,483

9,370

10,265

17.1

17.2

7.3

8.1

32.9

29.8

9.9

8.1

33.7

30.6

4.4

4.1

GlaxoSmith Con*

Accumulate

5,666

6,118

23,830

4,919

5,742

17.2

17.4

168.3

191.2

33.7

29.6

9.6

8.1

28.8

28.9

4.4

3.7

Godrej Consumer

Neutral

1,129

38,451

10,168

12,886

16.1

32.1

38.4

35.2

29.4

7.2

6.6

19.7

21.0

3.9

3.0

www.angelbroking.com

Stock Watch

January 25, 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

HUL

Accumulate

773

815

167,191

34,940

38,957

17.5

17.7

20.8

24.7

37.1

31.3

41.3

33.0

110.5

114.2

4.6

4.1

ITC

Buy

309

382

248,052

41,068

45,068

37.8

37.4

13.9

15.9

22.2

19.4

7.4

6.5

34.1

33.8

5.7

5.1

Marico

Neutral

219

28,268

6,551

7,766

15.7

16.0

10.4

12.5

21.1

17.5

6.1

5.1

33.2

32.4

4.2

3.6

Nestle*

Buy

5,452

6,646

52,569

11,291

12,847

22.2

22.3

158.9

184.6

34.3

29.5

17.9

16.1

55.0

57.3

4.5

3.9

Tata Global

Buy

126

144

7,924

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

839

1,132

118,298

42,038

47,503

23.2

23.5

55.8

62.9

15.0

13.3

3.5

2.7

23.0

19.8

2.4

1.9

Infosys

Buy

1,136

1,347

260,910

61,850

69,981

27.5

59.4

65.7

19.1

17.3

4.1

3.5

21.2

20.1

3.5

2.9

TCS

Buy

2,295

2,854

452,262

108,487

122,590

28.3

28.5

122.8

138.4

18.7

16.6

7.1

6.5

38.0

38.9

3.8

3.3

Tech Mahindra

Buy

514

646

49,681

25,566

28,890

16.0

17.0

26.3

31.9

19.5

16.1

3.5

3.0

17.9

18.6

1.7

1.5

Wipro

Buy

550

719

135,950

50,808

58,713

23.7

23.8

37.3

42.3

14.8

13.0

2.8

2.5

19.0

17.9

2.2

1.8

Media

D B Corp

Accumulate

318

356

5,840

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

1,845

2,495

2,603

11.2

7.3

8.6

10.9

9.2

0.9

0.8

7.4

8.1

0.2

Jagran Prakashan

Buy

164

189

5,365

2,170

2,355

27.2

26.2

8.9

9.9

18.4

16.6

3.9

3.4

20.9

20.5

2.4

2.2

Sun TV Network

Neutral

350

13,781

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

Neutral

254

1,862

920

1,031

20.0

19.2

20.9

13.2

12.2

2.2

1.9

16.4

15.3

1.6

1.4

Ventures

Metals & Mining

Coal India

Buy

300

380

189,459

76,167

84,130

19.9

22.3

22.4

25.8

13.4

11.6

4.8

4.7

35.5

41.0

1.8

1.6

Hind. Zinc

Buy

145

175

61,457

14,641

14,026

50.4

17.7

16.0

8.2

9.1

1.3

1.2

16.2

13.2

1.8

1.6

Hindalco

Neutral

14,940

104,356

111,186

8.7

9.5

6.7

11.1

10.8

6.5

0.4

3.5

5.9

0.7

0.6

JSW Steel

Neutral

1,066

25,771

42,308

45,147

16.4

20.7

(10.3)

49.5

21.5

1.2

(1.0)

5.6

1.7

1.5

NMDC

Neutral

31,856

8,237

10,893

46.6

44.5

10.0

11.7

8.1

6.9

0.9

0.8

12.5

13.0

3.7

2.8

SAIL

Neutral

17,821

45,915

53,954

7.2

10.5

1.5

4.4

28.7

9.9

0.4

2.3

4.1

1.0

0.9

Vedanta

Neutral

19,182

71,445

81,910

26.2

26.3

12.9

19.2

5.0

3.4

0.4

0.3

7.2

8.9

0.7

0.5

Tata Steel

Neutral

247

23,999

126,760

137,307

8.9

11.3

6.4

23.1

38.8

10.7

0.8

2.0

7.1

0.8

0.7

Oil & Gas

Cairn India

Neutral

113

21,167

11,323

12,490

49.4

51.0

20.7

5.5

0.4

0.3

6.4

6.1

0.9

0.3

GAIL

Neutral

367

46,610

64,856

70,933

9.1

9.6

24.0

28.9

15.3

12.7

1.3

1.2

8.8

9.6

0.9

0.8

ONGC

Neutral

216

185,184

154,564

167,321

36.8

37.4

28.6

32.5

7.6

6.7

1.0

0.9

12.7

13.5

1.4

1.3

Petronet LNG

Neutral

252

18,866

29,691

31,188

5.8

6.2

12.8

13.4

19.7

18.7

2.9

2.6

15.8

14.8

0.7

Indian Oil Corp

Accumulate

406

455

98,672

359,607

402,760

5.9

6.1

42.5

48.7

9.6

8.3

1.3

1.1

14.1

14.4

0.4

0.3

Reliance Industries

Accumulate

1,004

1,150

325,220

304,775

344,392

12.6

13.4

91.3

102.6

11.0

9.8

1.2

1.1

11.8

12.0

1.0

0.8

www.angelbroking.com

Stock Watch

January 25, 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

Pharmaceuticals

Alembic Pharma

Neutral

635

11,972

2,658

3,112

24.1

20.2

24.6

23.9

25.8

26.6

9.3

7.1

42.5

30.2

4.5

3.8

Aurobindo Pharma

Accumulate

813

856

47,465

14,923

17,162

22.0

23.0

35.7

42.8

22.8

19.0

6.7

5.0

34.0

30.2

3.6

3.0

Aventis*

Neutral

4,175

9,615

2,082

2,371

17.4

20.8

118.2

151.5

35.3

27.6

5.2

4.2

19.9

25.5

4.3

3.6

Cadila Healthcare

Buy

301

352

30,794

10,224

11,840

21.0

22.0

14.6

17.6

20.6

17.1

5.6

4.4

30.8

29.0

3.1

2.6

Cipla

Accumulate

583

636

46,857

14,211

16,611

20.6

19.0

27.0

28.9

21.6

20.2

3.7

3.1

18.4

16.8

3.3

2.7

Dr Reddy's

Buy

2,883

3,933

49,168

16,838

19,575

25.0

23.1

167.5

178.8

17.2

16.1

3.6

3.0

23.1

20.4

2.8

2.4

Dishman Pharma

Neutral

322

2,601

1,733

1,906

21.5

17.0

19.9

19.0

16.2

1.9

1.7

10.5

11.2

2.0

1.7

GSK Pharma*

Neutral

3,129

26,505

2,870

3,158

20.0

22.1

59.5

68.3

52.6

45.8

15.5

15.9

28.5

34.3

8.7

8.0

Indoco Remedies

Neutral

302

2,784

1,033

1,199

15.9

18.2

9.4

13.6

32.1

22.2

4.8

4.1

15.7

19.7

2.8

2.4

Ipca labs

Buy

642

900

8,100

3,363

3,909

12.9

18.6

13.4

28.0

47.9

22.9

3.4

3.0

7.4

14.0

2.7

2.3

Lupin

Neutral

1,717

77,339

13,092

16,561

25.0

27.0

50.4

68.3

34.1

25.1

7.0

5.6

22.8

24.7

5.6

4.3

Sun Pharma

Buy

790

950

190,134

28,163

32,610

25.8

30.7

17.4

26.9

45.4

29.4

4.3

3.7

13.0

16.6

6.2

5.2

Power

Tata Power

Neutral

16,701

35,923

37,402

22.6

22.8

4.1

5.2

15.2

12.0

1.2

1.1

7.5

9.3

1.4

1.3

NTPC

Accumulate

138

157

113,746

87,064

98,846

23.5

11.7

13.2

11.8

10.5

1.3

1.2

11.4

12.1

2.3

2.1

Power Grid

Buy

133

170

69,685

20,702

23,361

86.7

86.4

12.1

13.2

11.0

10.1

1.6

1.4

15.6

15.1

8.3

7.7

Telecom

Bharti Airtel

Neutral

299

119,462

101,748

109,191

32.1

31.7

12.0

12.5

24.9

23.9

1.7

1.6

6.9

6.7

1.8

1.6

Idea Cellular

Neutral

107

38,470

34,282

36,941

32.0

31.5

5.9

6.2

18.1

17.2

1.7

1.5

9.9

9.3

1.7

1.6

zOthers

Abbott India

Neutral

5,074

10,782

2,715

3,153

14.5

14.1

134.3

152.2

37.8

33.3

9.4

7.8

27.4

25.6

3.7

3.1

Bajaj Electricals

Buy

181

290

1,831

4,719

5,287

5.2

5.8

8.6

12.7

21.2

14.3

2.4

2.1

11.4

14.8

0.4

0.3

Finolex Cables

Neutral

224

3,420

2,520

2,883

12.2

12.0

12.7

14.2

17.7

15.8

2.4

2.1

13.6

13.5

1.1

0.9

Goodyear India*

Buy

491

622

1,132

1,888

1,680

12.1

11.9

62.2

56.6

7.9

8.7

1.9

1.6

25.9

19.7

0.4

Hitachi

Neutral

1,137

3,090

1,779

2,081

7.8

8.8

21.8

33.4

52.1

34.0

8.4

6.8

17.4

22.1

1.8

1.5

Jyothy Laboratories

Neutral

273

4,946

1,620

1,847

11.5

7.3

8.5

37.5

32.2

4.8

4.5

13.3

14.4

2.9

2.5

MRF

Buy

36,259

45,575

15,378

20,316

14,488

21.4

21.1

5,488.0

3,798.0

6.6

9.6

2.3

1.8

41.1

21.2

0.7

0.9

Page Industries

Neutral

12,283

13,701

1,929

2,450

19.8

20.1

229.9

299.0

53.4

41.1

23.6

16.4

52.1

47.1

7.1

5.6

Relaxo Footwears

Neutral

455

5,461

1,767

2,152

12.3

12.5

19.3

25.1

23.6

18.2

5.8

4.5

27.7

27.8

3.1

2.6

Siyaram Silk Mills

Buy

1,051

1,354

985

1,636

1,815

11.5

89.9

104.1

11.7

10.1

1.9

1.7

17.9

17.8

0.8

0.7

Styrolution ABS India*

Neutral

683

1,202

1,271

1,440

8.6

9.2

32.0

41.1

21.3

16.6

2.2

2.0

10.7

12.4

0.9

0.8

TVS Srichakra

Buy

2,543

3,240

1,947

2,101

2,338

15.7

15.0

248.6

270.0

10.2

9.4

4.5

3.2

43.6

34.0

1.0

0.8

www.angelbroking.com

Stock Watch

January 25, 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

HSIL

Accumulate

282

302

2,038

2,123

2,384

16.1

16.5

15.0

18.9

18.7

14.9

1.5

1.4

8.0

9.4

1.3

1.1

Kirloskar Engines India

Neutral

231

3,342

2,471

2,826

8.8

10.4

9.1

13.3

25.3

17.3

2.4

2.2

9.7

13.4

1.0

0.8

Ltd

M M Forgings

Buy

478

614

577

511

615

21.7

21.6

43.1

55.8

11.1

8.6

2.0

1.7

19.9

21.2

1.3

1.0

Banco Products (India) Neutral

124

887

1,208

1,353

11.0

12.3

10.8

14.5

11.5

8.6

1.3

1.2

11.9

14.5

0.7

0.6

Competent Automobiles Neutral

143

1,040

1,137

3.2

3.1

25.7

28.0

5.6

5.1

0.8

0.7

15.0

14.3

0.1

Nilkamal

Neutral

1,274

1,901

1,910

2,083

10.5

10.3

63.3

69.2

20.1

18.4

3.3

2.8

17.6

16.5

1.1

0.9

Visaka Industries

Buy

107

144

170

1,086

1,197

9.9

10.3

21.5

28.8

5.0

3.7

0.5

0.4

9.6

11.6

0.4

0.3

Transport Corporation of

Neutral

237

1,800

2,830

3,350

8.8

9.0

14.4

18.3

16.5

12.9

2.5

2.2

15.4

17.1

0.8

0.7

India

Elecon Engineering

Buy

722

1,369

1,533

13.7

14.9

3.3

6.1

20.0

10.9

1.3

1.2

6.6

11.4

0.9

0.8

Surya Roshni

Buy

142

201

623

2,992

3,223

8.1

8.4

14.7

18.3

9.7

7.8

0.9

0.8

9.7

11.0

0.5

MT Educare

Neutral

161

640

286

366

18.3

17.7

7.7

9.4

20.8

17.2

4.4

3.8

20.2

21.1

2.1

1.6

Radico Khaitan

Buy

112

156

1,489

1,565

1,687

12.2

13.0

5.7

7.1

19.6

15.8

1.7

1.5

8.3

9.6

1.4

1.3

Garware Wall Ropes

Buy

352

473

770

862

974

11.2

24.9

29.6

14.1

11.9

2.1

1.8

15.1

15.4

0.9

0.8

Wonderla Holidays

Neutral

391

2,209

206

308

44.0

43.6

9.0

12.9

43.4

30.3

5.9

5.4

13.7

17.8

10.6

7.1

Linc Pen & Plastics

Neutral

211

312

340

371

8.3

8.9

10.8

13.2

19.6

16.0

3.1

2.7

16.0

17.1

1.0

0.9

The Byke Hospitality

Neutral

159

639

222

287

20.5

5.6

7.6

28.3

21.1

5.3

4.4

18.9

20.8

2.9

2.2

Interglobe Aviation

Neutral

968

34,893

17,022

21,122

20.7

14.5

63.9

53.7

15.2

18.0

22.7

18.6

149.9

103.2

2.1

1.7

Coffee Day Enterprises

Neutral

250

5,156

2,692

2,964

17.0

18.6

4.7

52.8

3.1

2.9

0.2

5.5

2.3

2.1

Ltd

Navneet Education

Neutral

2,043

998

1,062

24.1

24.0

5.8

6.1

14.9

14.1

3.3

2.9

22.0

20.6

2.1

2.0

Navkar Corporation

Buy

197

265

2,802

365

436

38.3

37.5

5.6

5.9

34.9

33.4

2.2

2.1

6.3

6.1

8.5

7.3

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on January 22, 2016

www.angelbroking.com

Market Outlook

January 25, 2016

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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