Market Outlook
August 25, 2015
Dealer’s Diary
Domestic Indices
Chg (%)
(Pts)
(Close)
BSE Sensex
(5.9)
(1,625)
25,742
Indian markets are expected to open positive tracking SGX Nifty.
Nifty
(5.9)
(491)
7,809
U.S. stocks suffered their worst session in years Monday, with markets spooked by
MID CAP
(7.7)
(862)
10,355
concerns about the global economy.
SMALL CAP
(8.8)
(1,023)
10,588
European markets ended the first session of the new trading week with sharp losses.
BSE HC
(6.8)
(1,246)
17,195
Continued concerns over China sparked the largest one-day decline in the Eurozone
BSE PSU
(7.9)
(563)
6,596
in several years.
BANKEX
(7.0)
(1,446)
19,242
Indian markets ended in the red led by decline in the Real Estate, Oil & Gas and
AUTO
(7.2)
(1,352)
17,444
Power stocks
METAL
(7.2)
(532)
6,869
OIL & GAS
(9.2)
(842)
8,307
News & Result Analysis
BSE IT
(5.0)
(578)
11,050
Impact of Rupee Depreciation on IT & Pharmaceuticals
Global Indices
Chg (%)
(Pts)
(Close)
Royal Enfield announces entry into Indonesian market
Refer detailed news analysis on the following page
Dow Jones
(3.6)
(588)
15,871
NASDAQ
(3.8)
(180)
4,526
Markets Today
FTSE
(4.7)
(289)
5,899
The trend deciding level for the day is 26,032 / 7,879 levels. If NIFTY trades above
Nikkei
(4.6)
(895)
18,541
this level during the first half-an-hour of trade then we may witness a further rally up
Hang Sang
(5.2)
(1,158)
21,252
to 26,440 - 27,138 / 7,990 - 8,170 levels. However, if NIFTY trades below
Straits Times
(4.3)
(128)
2,843
26,032 / 7,879 levels for the first half-an-hour of trade then it may correct towards
Shanghai Com
(8.5)
(298)
3,210
25,334 - 24,927 / 7,699 - 7,589 levels.
Indices
S2
S1
PIVOT
R1
R2
Indian ADR
Chg (%)
(Pts)
(Close)
SENSEX
24,927
25,334
26,032
26,440
27,138
INFY
(3.0)
(0.5)
$16.5
NIFTY
7,589
7,699
7,879
7,990
8,170
WIT
(4.4)
(0.5)
$11.4
IBN
(6.4)
(0.6)
$8.5
Net Inflows (August 21, 2015)
HDB
(5.3)
(3.2)
$56.8
` cr
Purch
Sales
Net
MTD
YTD
FII
4,582
6,881
(2,299)
(4,017)
136,952
Advances / Declines
BSE
NSE
MFs
1,166
930
236
1,445
59,393
Advances
309
65
Declines
2,494
1,508
FII Derivatives (August 24, 2015)
` cr
Purch
Sales
Net
Open Interest
Unchanged
56
26
Index Futures
8,788
9,200
(412)
18,749
Volumes (` cr)
Stock Futures
12,617
11,403
1,214
49,421
BSE
4,386
Gainers / Losers
NSE
27,764
Gainer
Loser
Company
Price (`)
chg (%)
Company
Price (`)
chg (%)
VIDEOIND
138
0.3
AMTEKAUTO
48
(25.2)
NMDC
93
0.3
WOCKPHARMA
1,302
(21.3)
-
-
-
VAKRANGEE
100
(20.0)
-
-
-
BFUTILITIE
477
(19.4)
-
-
-
HDIL
59
(19.0)
www.angelbroking.com
Market Outlook
August 25, 2015
Impact of Rupee Depreciation on IT & Pharmaceuticals
The Rupee has been constantly, been depreciating vis-a-vis Dollar and Euro. The
Rupee in FY2016, so far has depreciated by ~5.7% and ~3.3% vis -a- vis Euro
and dollar respectively. The overall depreciation will be beneficial for the IT and
Pharmaceutical sectors, which are net exporters. While, both sectors are equally
beneficiary of the trend, we believe that IT which has higher net export of the
range of
40-50%, will be a major beneficiary of the same, followed by
Pharmaceuticals. While the exact benefit for per 1% depreciation on bottom-line
can’t be forecasted as all companies have a different composition of US/Euro and
other currency mix. However, as per companies, we believe that large caps, which
are more focused on Europe and US, will show more benefits of the current
depreciation, most of them have around 70-80% sales from these regions.
Moreover, while we are not sure whether, the trend will flow into FY2017, we
believe that IT stocks are well poised and are not factoring in much benefit from
such depreciation, and trading at around 14-19xFY2017E earnings , while
Pharmaceutical sector trades at 25-27xFY2017E PE multiple on an average. Thus
Pharmaceuticals are even after factoring the currency benefit will be just fairly
valued, whereas IT sector could see some upgrades in case the trend moves into
FY2017. So we maintain our buy on IT stocks like-Infosys, TCS, Tech Mahindra,
Wipro, HCL Tech.
Royal Enfield announces entry into Indonesian market
Royal Enfield, the two-wheeler division of Eicher Motors announced its entry into
the Indonesian market, with plans to commence retail operations the coming
months. The company announced its future plans for Indonesia, the third largest
two-wheeler market in the world, as a part of its growth strategy and focused
international thrust of leading and expanding the global mid-sized motorcycle
segment (250-750cc). Indonesia is a strategic market for Royal Enfield.
As per the company, the Indonesian market with its large commuter base, has
enormous potential to upgrade to the next level of motorcycles, should there be
optimal product choice. Royal Enfield is well poised to fill this gap and catalyse the
shift to mid-sized motorcycles in Indonesia. As per its entry plans, the company will
commence retail operations in the coming months from its exclusive dealership in
Jakarta that is being set up in partnership with PT Distributor Motor Indonesia, who
have signed-up as a dealer for the region. In addition to the store, the distributor
will also build service and aftermarket capability for Royal Enfield. The company
will build presence from Jakarta and depending on the response, expand footprint
to the other key cities.
Backed by a phenomenal growth of over 50% in the last five years, the company's
ambition is to lead and grow the middle weight segment, which is under served
globally with respect to evocative products. The company believes this growth will
largely come from markets like India such as Latin America and South East Asia,
given their size and comparable commuting trends. It already entered Colombia
last year and is now expanding presence in other countries. We currently have Buy
rating on the stock.
www.angelbroking.com
Market Outlook
August 25, 2015
Economic and Political News
Jaitley stands firm, says GST Bill will soon see light of day
Inflation expectations are still high: Rajan
Fiscal deficit, inflation under control; economy in revival mode: FM
Corporate News
Adani Enterprises to invest `25,000cr in Chhattisgarh NTPC to buy MP Power
plant
Glenmark expecting USFDA nod for 4-6 products this fiscal
Rane TRW Steering Systems launches new airbag production plant
Top Picks
Large Cap
Market
CMP
Target
Upside
Company
Sector
Rating
Cap (` Cr)
(`)
(`)
(%)
Axis Bank
Financials
1,14,608
Buy
482
716
48.5
ICICI Bank
Financials
1,56,658
Buy
270
370
37.1
Infosys
IT
2,50,976
Buy
1,093
1,306
19.5
Inox Wind
Capital Goods
7,600
Buy
342
505
47.5
LIC Housing Fin. Financials
21,499
Buy
426
590
38.5
Power Grid
Power
68,665
Buy
131
170
29.5
TCS
IT
5,05,195
Buy
2,579
3,168
22.8
Tech Mahindra IT
50,345
Buy
523
646
23.4
Yes Bank
Financials
26,318
Buy
629
989
57.2
Source: Angel Research, Bloomberg
Mid Cap
Market
CMP
Target
Upside
Company
Sector
Rating
Cap (` Cr)
(`)
(`)
(%)
Bajaj Electricals
Others
2,357
Buy
234
341
45.9
Garware Wall Ropes Others
630
Buy
288
390
35.5
Hindustan Media Ven. Media
1,524
Buy
208
292
40.7
JK Tyre
Auto Ancillary
2,285
Buy
101
147
45.9
MBL Infrastructures
Construction
912
Buy
220
360
63.6
Minda Industries
Auto Ancillary
933
Buy
500
652
30.4
MT Educare
Others
509
Buy
128
169
32.2
Radico Khaitan
Others
1,199
Buy
90
112
24.3
Surya Roshni
Others
503
Buy
115
183
59.6
Source: Angel Research, Bloomberg
www.angelbroking.com
Market Outlook
August 25, 2015
Global economic events release calendar
Date
Time
Country Event Description
Unit
Period
Bloomberg Data
Last Reported Estimated
August 25, 2015
11:30AM
Germany GDP nsa (YoY)
% Change
2Q F
1.60
1.60
7:30PM
US
New home sales
Thousands
Jul
482.00
510.00
7:30PM
US
Consumer Confidence
S.A./ 1985=100
Aug
90.91
93.40
August 27, 2015
6:00PM
US
Initial Jobless claims
Thousands
Aug 22
277.00
275.00
6:00PM
US
GDP Qoq (Annualised)
% Change
2Q S
2.30
3.20
August 28, 2015
2:30PM
Euro Zone Euro-Zone Consumer Confidence
Value
Aug F
(6.80)
--
2:00PM
UK
GDP (YoY)
% Change
2Q P
2.60
2.60
September 1, 2015
1:25PM
Germany PMI Manufacturing
Value
Aug F
53.20
--
1:25PM
Germany Unemployment change (000's)
Thousands
Aug
9.00
--
6:30AM
China
PMI Manufacturing
Value
Aug
50.00
49.70
2:00PM
UK
PMI Manufacturing
Value
Aug
51.90
--
September 3, 2015
1:25PM
Germany PMI Services
Value
Aug F
53.60
--
5:15PM
Euro Zone ECB announces interest rates
%
Sep 3
0.05
--
September 4, 2015
2:30PM
Euro Zone Euro-Zone GDP s.a. (QoQ)
% Change
2Q P
0.30
--
6:00PM
US
Change in Nonfarm payrolls
Thousands
Aug
215.00
195.00
6:00PM
US
Unnemployment rate
%
Aug
5.30
5.30
September 8, 2015
China
Exports YoY%
% Change
Aug
(8.30)
--
September 9, 2015
7:00AM
China
Consumer Price Index (YoY)
% Change
Aug
1.60
--
2:00PM
UK
Industrial Production (YoY)
% Change
Jul
1.50
--
September 10, 2015
India
Imports YoY%
% Change
Aug
(10.28)
--
India
Exports YoY%
% Change
Aug
(10.30)
--
4:30PM
UK
BOE Announces rates
% Ratio
Sep 10
0.50
0.50
September 11, 2015
5:30PM
India
Industrial Production YoY
% Change
Jul
3.80
--
September 12, 2015
11:00AM
China
Industrial Production (YoY)
% Change
Aug
6.00
--
Source: Bloomberg, Angel Research
Market Outlook
August 25, 2015
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
9.0
8.4
6.0
5.2
4.8
7.5
7.5
5.0
3.8
8.0
3.6
3.4
7.0
4.0
2.8
6.7
6.7
2.6
2.5
2.5
7.0
6.3
6.4
6.6
3.0
2.0
6.0
0.5
1.0
5.0
4.7
-
5.0
4.5
(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
(%)
55.0
Mfg. PMI
Services PMI
8.0
7.0
54.0
7.0
5.6
53.0
6.0
5.2
5.4
5.3
5.4
4.9
5.0
4.6
5.0
4.3
52.0
3.8
4.0
3.3
51.0
3.0
2.0
50.0
1.0
49.0
-
48.0
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
August 25, 2015
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
7.0
6.0
5.3
4.9
4.7
4.0
2.8
2.6
2.1
2.3
1.6
2.0
1.0
(1.6)
0.7
(4.6)
-
(2.0)
(4.0)
(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
1.2
1.0
2.0
(3.8)
(1.0)
-
(2.0)
(4.0)
(6.0)
Source: IMF, Angel Research
Exhibit 3: One year forward P-E ratio across select developing and developed countries
(x)
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
-
Source: Bloomberg, Angel Research
www.angelbroking.com
www.angelbroking.com
Market Outlook
August 25, 2015
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
44,336
(11.0)
(18.5)
(24.7)
Russia
Micex
1,634
1.1
(1.3)
11.8
India
Nifty
7,809
(9.1)
(6.4)
0.2
China
Shanghai Composite
3,210
(22.2)
(33.3)
45.5
South Africa
Top 40
42,149
(9.1)
(12.0)
(8.9)
Mexico
Mexbol
41,471
(7.5)
(6.6)
(8.6)
Indonesia
LQ45
692
(17.8)
(23.9)
(21.5)
Malaysia
KLCI
1,532
(11.3)
(13.5)
(18.7)
Thailand
SET 50
841
(11.7)
(16.4)
(17.4)
USA
Dow Jones
15,871
(10.5)
(12.9)
(7.1)
UK
FTSE
5,899
(11.4)
(15.1)
(13.6)
Japan
Nikkei
18,541
(11.2)
(10.8)
19.1
Germany
DAX
9,648
(16.2)
(17.0)
3.3
France
CAC
4,383
(13.8)
(13.8)
0.4
Source: Bloomberg, Angel Research
www.angelbroking.com
www.angelbroking.com
Market Outlook
August 25, 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
213
-
4,137
2,075
2,394
14.4
14.4
9.5
11.0
22.4
19.3
4.5
3.9
21.1
21.3
2.0
1.8
United Phosphorus
Neutral
486
-
20,837
13,698
15,752
17.6
17.6
32.1
38.5
15.1
12.6
3.0
2.5
21.4
21.3
1.6
1.3
Auto & Auto Ancillary
Ashok Leyland
Accumulate
85
94
24,048
17,850
20,852
10.6
11.1
3.2
4.3
26.4
19.7
4.4
4.0
16.4
20.8
1.3
1.1
Bajaj Auto
Accumulate
2,188
2,454
63,327
23,842
27,264
19.8
19.6
128.4
144.4
17.0
15.2
5.2
4.5
30.5
29.5
2.2
1.9
Eicher Motors
Buy
18,586
22,859
50,445
11,681
15,550
15.3
16.9
358.5
564.3
51.8
32.9
15.6
11.6
29.8
34.9
4.2
3.1
Hero Motocorp
Accumulate
2,479
2,660
49,502
28,500
33,028
13.8
14.1
144.2
166.3
17.2
14.9
6.3
5.4
36.7
36.0
1.6
1.3
L G Balakrishnan & Bros Neutral
420
-
659
1,254
1,394
11.6
11.8
35.9
41.7
11.7
10.1
1.6
1.4
13.5
13.8
0.6
0.6
Mahindra and Mahindra Buy
1,240
1,493
77,006
40,088
45,176
13.8
14.0
59.6
70.4
20.8
17.6
3.4
3.0
16.6
17.2
1.6
1.3
Maruti
Accumulate
4,250
4,735
128,392
58,102
68,587
16.7
16.9
182.0
225.5
23.4
18.9
4.6
4.0
19.9
21.0
2.0
1.6
Minda Industries
Buy
500
652
933
2,567
2,965
7.3
8.0
38.8
54.3
12.9
9.2
1.9
1.6
14.4
16.8
0.4
0.3
Rane Brake Lining
Buy
278
366
220
454
511
11.1
11.4
23.8
28.1
11.7
9.9
1.7
1.5
14.2
15.3
0.6
0.6
Setco Automotive
Neutral
212
-
567
594
741
12.7
13.7
8.4
15.8
25.3
13.4
2.6
2.3
10.4
16.9
1.4
1.2
Tata Motors
Buy
310
432
89,417
267,464
307,211
13.7
13.7
34.6
40.7
9.0
7.6
1.1
1.0
13.2
13.6
0.5
0.5
TVS Motor
Buy
214
255
10,145
11,839
13,985
7.0
8.0
10.8
15.9
19.8
13.4
5.1
4.0
25.5
29.7
0.8
0.7
Amara Raja Batteries
Neutral
984
-
16,814
5,101
6,224
17.8
17.6
31.1
39.2
31.7
25.1
7.9
6.2
24.8
24.8
3.3
2.6
Exide Industries
Accumulate
147
159
12,495
7,363
8,247
13.7
14.5
6.6
7.7
22.3
19.1
2.8
2.6
12.6
13.3
1.4
1.3
Apollo Tyres
Accumulate
170
190
8,633
12,428
13,262
16.8
16.4
21.9
21.1
7.7
8.0
1.3
1.1
17.0
14.1
0.8
0.8
Ceat
Buy
1,021
1,203
4,130
6,041
6,770
14.3
14.1
101.5
120.3
10.1
8.5
2.0
1.7
20.0
19.6
0.8
0.7
JK Tyres
Buy
101
147
2,285
7,446
7,942
15.2
14.7
19.6
21.0
5.1
4.8
1.3
1.1
25.2
21.7
0.7
0.6
Swaraj Engines
Neutral
871
-
1,082
593
677
14.5
14.8
51.2
60.8
17.0
14.3
4.0
3.6
23.3
24.8
1.7
1.4
Subros
Neutral
76
-
454
1,268
1,488
11.6
11.9
3.7
6.6
20.5
11.5
1.4
1.3
6.8
11.4
0.7
0.5
Indag Rubber
Neutral
172
-
452
283
329
17.0
17.2
13.0
15.4
13.3
11.2
2.9
2.4
21.8
21.6
1.3
1.1
Capital Goods
ACE
Neutral
36
-
358
660
839
4.7
8.2
1.0
3.9
36.2
9.3
1.1
1.0
3.2
11.3
0.7
0.6
BEML
Neutral
1,202
-
5,006
3,277
4,006
6.0
8.9
29.2
64.3
41.2
18.7
2.3
2.1
5.7
11.7
1.6
1.3
BGR Energy
Neutral
105
-
755
3,615
3,181
9.5
9.4
16.7
12.4
6.3
8.4
0.6
0.6
10.0
7.0
0.6
0.8
BHEL
Neutral
230
-
56,197
33,722
35,272
10.8
11.7
10.5
14.2
21.9
16.2
1.6
1.5
7.0
9.0
1.7
1.7
Blue Star
Accumulate
344
387
3,093
3,649
4,209
5.0
5.9
9.2
14.7
37.6
23.4
6.8
6.4
9.1
17.5
0.9
0.8
Crompton Greaves
Buy
160
204
10,047
13,484
14,687
4.9
6.2
4.5
7.1
35.6
22.6
2.5
2.4
7.2
10.8
0.9
0.8
Inox Wind
Buy
342
505
7,600
4,980
5,943
17.0
17.5
26.6
31.6
12.9
10.8
3.9
2.8
35.0
30.0
1.7
1.4
www.angelbroking.com
Market Outlook
August 25, 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
119
-
3,058
8,791
9,716
6.1
6.8
5.4
8.2
22.0
14.5
2.2
2.0
10.0
14.0
0.6
0.5
Thermax
Neutral
923
-
10,992
6,413
7,525
7.4
8.5
30.5
39.3
30.3
23.5
4.7
4.1
15.0
17.0
1.7
1.4
Cement
ACC
Accumulate
1,376
1,548
25,828
11,856
14,092
14.5
17.8
47.6
76.1
28.9
18.1
3.0
2.7
10.6
15.7
2.0
1.7
Ambuja Cements
Accumulate
213
233
33,094
10,569
12,022
20.7
22.2
8.7
10.7
24.5
19.9
3.1
2.9
13.0
15.2
2.7
2.4
India Cements
Buy
68
112
2,073
4,716
5,133
15.9
16.9
3.7
7.5
18.2
9.0
0.7
0.6
3.8
7.3
0.7
0.6
JK Cement
Buy
603
767
4,213
4,056
4,748
14.5
17.0
22.6
41.1
26.7
14.7
2.4
2.1
9.3
15.3
1.5
1.2
J K Lakshmi Cement
Buy
330
430
3,887
2,947
3,616
16.7
19.9
11.5
27.2
28.7
12.2
2.7
2.4
9.8
20.8
1.7
1.4
Mangalam Cements
Neutral
218
-
581
1,053
1,347
10.5
13.3
8.4
26.0
25.9
8.4
1.1
1.0
4.3
12.5
0.9
0.7
Orient Cement
Accumulate
163
183
3,339
1,854
2,524
21.2
22.2
7.7
11.1
21.2
14.7
3.0
2.6
13.3
15.7
2.5
1.8
Ramco Cements
Neutral
335
-
7,982
4,036
4,545
20.8
21.3
15.1
18.8
22.2
17.8
2.7
2.4
12.9
14.3
2.5
2.1
Shree Cement^
Neutral
10,789
-
37,586
7,150
8,742
26.7
28.6
228.0
345.5
47.3
31.2
7.0
5.8
15.7
20.3
5.0
4.0
UltraTech Cement
Buy
2,837
3,282
77,844
27,562
31,548
20.4
22.3
111.9
143.3
25.4
19.8
3.6
3.1
15.2
16.8
2.9
2.5
Construction
ITNL
Neutral
91
-
2,235
7,360
8,825
34.0
35.9
1.0
5.0
90.6
18.1
0.4
0.4
0.3
1.4
3.7
3.6
KNR Constructions
Neutral
562
-
1,427
915
1,479
14.3
13.9
20.3
37.2
27.7
15.1
2.5
2.2
9.6
15.6
1.7
1.1
Larsen & Toubro
Buy
1,633
2,013
151,995
68,920
82,446
10.9
11.5
57.0
73.0
28.7
22.4
2.6
2.4
13.6
15.5
2.4
2.0
Gujarat Pipavav Port
Neutral
180
-
8,678
740
843
53.1
53.6
8.0
10.0
22.4
18.0
3.5
2.8
20.4
19.4
11.3
9.5
MBL Infrastructures
Buy
220
360
912
2,313
2,797
12.2
14.6
19.0
20.0
11.6
11.0
1.2
1.1
11.3
10.6
1.1
1.0
PNC Infratech
Neutral
435
-
2,233
1,798
2,132
13.2
13.5
22.0
30.0
19.8
14.5
1.8
1.6
11.5
11.4
1.3
1.1
Financials
Allahabad Bank
Neutral
82
-
4,694
8,859
9,817
3.0
3.0
23.7
30.1
3.5
2.7
0.4
0.3
10.6
12.3
-
-
Axis Bank
Buy
482
716
114,608
26,522
31,625
3.6
3.6
36.2
45.4
13.3
10.6
2.6
2.3
18.2
19.6
-
-
Bank of Baroda
Neutral
183
-
40,360
18,934
21,374
2.0
2.0
13.2
15.1
13.8
12.1
1.0
0.9
7.1
7.7
-
-
Bank of India
Neutral
140
-
9,322
17,402
20,003
2.0
2.1
40.3
50.7
3.5
2.8
0.3
0.3
9.0
10.4
-
-
Canara Bank
Neutral
283
-
14,588
15,805
17,745
2.0
2.2
64.3
73.5
4.4
3.9
0.5
0.4
10.8
11.3
-
-
Dena Bank
Neutral
42
-
2,346
3,580
4,040
2.1
2.2
8.4
10.9
5.0
3.8
0.4
0.4
6.8
8.4
-
-
Federal Bank
Neutral
61
-
10,469
3,522
4,045
3.2
3.2
12.2
14.1
5.0
4.3
0.6
0.6
12.9
13.4
-
-
HDFC
Neutral
1,167
-
183,932
11,198
13,321
3.5
3.5
45.1
53.7
25.9
21.7
5.3
4.8
27.2
28.2
-
-
HDFC Bank
Buy
1,019
1,255
256,226
38,629
47,500
4.5
4.7
52.6
66.4
19.4
15.4
3.5
3.0
19.6
21.2
-
-
ICICI Bank
Buy
270
370
156,658
36,037
41,647
3.5
3.6
22.9
26.7
11.8
10.1
2.0
1.7
15.7
15.9
-
-
IDBI Bank
Neutral
57
-
9,167
9,806
11,371
1.7
1.9
10.0
16.3
5.8
3.5
0.4
0.4
6.8
10.4
-
-
www.angelbroking.com
Market Outlook
August 25, 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
Indian Bank
Neutral
126
-
6,040
6,454
7,321
2.5
2.6
26.4
33.3
4.8
3.8
0.4
0.4
8.1
9.6
-
-
LIC Housing Finance
Buy
426
590
21,499
2,934
3,511
2.3
2.3
30.9
36.8
13.8
11.6
2.2
1.9
16.8
17.5
-
-
Oriental Bank
Neutral
136
-
4,084
7,930
8,852
2.5
2.5
51.8
57.1
2.6
2.4
0.3
0.3
9.3
9.5
-
-
Punjab Natl.Bank
Neutral
142
-
26,409
24,160
27,777
2.9
3.0
18.5
24.6
7.7
5.8
0.8
0.6
8.8
10.8
-
-
South Ind.Bank
Neutral
20
-
2,646
1,999
2,249
2.4
2.4
3.5
4.0
5.6
4.9
0.7
0.6
12.6
13.1
-
-
St Bk of India
Buy
246
309
185,751
86,900
100,550
3.1
3.1
22.1
27.7
11.1
8.9
1.4
1.2
12.7
14.3
-
-
Union Bank
Neutral
173
-
11,012
12,995
14,782
2.4
2.4
32.3
40.9
5.4
4.2
0.6
0.5
10.7
12.3
-
-
Vijaya Bank
Neutral
35
-
3,020
3,474
3,932
1.8
1.9
5.9
7.2
6.0
4.9
0.5
0.5
8.1
9.3
-
-
Yes Bank
Buy
629
989
26,318
7,006
8,825
3.1
3.3
61.4
77.1
10.3
8.2
1.9
1.6
20.1
21.3
-
-
FMCG
Asian Paints
Neutral
839
-
80,458
16,553
19,160
16.0
16.2
17.7
21.5
47.5
39.0
12.6
11.3
29.4
31.2
4.7
4.1
Britannia
Neutral
3,001
-
36,002
8,065
9,395
9.6
10.2
47.2
65.5
63.6
45.8
21.1
20.0
38.3
41.2
4.3
3.7
Colgate
Neutral
1,937
-
26,342
4,836
5,490
19.5
19.7
48.5
53.2
39.9
36.4
29.3
25.5
99.8
97.5
5.3
4.7
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
5,879
-
24,722
4,919
5,742
17.2
17.4
168.3
191.2
34.9
30.8
9.9
8.4
28.8
28.9
4.6
3.9
Godrej Consumer
Neutral
1,225
-
41,712
10,168
12,886
16.1
16.1
32.1
38.4
38.2
31.9
7.8
7.2
19.7
21.0
4.2
3.3
HUL
Neutral
852
-
184,443
34,940
38,957
17.5
17.7
20.8
24.7
41.0
34.5
45.6
36.4
110.5
114.2
5.1
4.5
ITC
Buy
320
409
256,950
41,068
45,068
37.8
37.4
13.9
15.9
23.0
20.1
7.7
6.8
34.1
33.8
5.9
5.3
Marico
Neutral
393
-
25,349
6,551
7,766
15.7
16.0
10.4
12.5
37.9
31.4
11.0
9.1
33.2
32.4
3.8
3.2
Nestle*
Accumulate
6,045
6,646
58,278
11,291
12,847
22.2
22.3
158.9
184.6
38.0
32.7
19.9
17.9
55.0
57.3
5.0
4.4
Tata Global
Buy
115
152
7,243
8,635
9,072
9.8
9.9
6.5
7.6
17.7
15.1
1.8
1.7
6.8
7.4
0.8
0.7
IT
HCL Tech^
Buy
927
1,132
130,365
42,038
47,503
23.5
23.5
56.4
62.9
16.4
14.7
3.8
2.9
23.2
19.8
2.7
2.2
Infosys
Buy
1,093
1,306
250,976
60,250
66,999
28.0
28.0
58.3
63.7
18.7
17.2
3.9
3.4
20.9
19.7
3.5
3.0
TCS
Buy
2,579
3,168
505,195
108,420
123,559
28.8
28.7
127.2
143.9
20.3
17.9
8.1
7.5
39.9
41.8
4.3
3.7
Tech Mahindra
Buy
523
646
50,345
25,566
28,890
16.0
17.0
26.3
31.9
19.9
16.4
3.6
3.1
17.9
18.6
1.7
1.5
Wipro
Buy
544
719
134,346
52,414
58,704
23.7
23.8
38.4
42.3
14.2
12.9
2.8
2.5
19.5
18.0
2.1
1.7
Media
D B Corp
Accumulate
313
356
5,747
2,241
2,495
27.8
27.9
21.8
25.6
14.4
12.2
3.8
3.3
26.7
28.5
2.5
2.2
HT Media
Neutral
84
-
1,952
2,495
2,603
11.2
11.2
7.3
8.6
11.5
9.8
0.9
0.8
7.4
8.1
0.3
0.3
Jagran Prakashan
Buy
130
156
4,261
1,939
2,122
26.0
26.0
8.3
9.2
15.7
14.2
2.7
2.4
17.5
17.1
2.2
2.0
Sun TV Network
Neutral
299
-
11,763
2,779
3,196
70.2
70.5
22.8
27.3
13.1
10.9
3.2
2.9
26.7
28.3
4.0
3.4
www.angelbroking.com
Market Outlook
August 25, 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
Hindustan Media
Buy
208
292
1,524
920
1,031
20.0
20.0
19.2
20.9
10.8
9.9
1.8
1.5
16.4
15.3
1.2
1.0
Ventures
Metals & Mining
Coal India
Buy
336
450
212,419
77,595
89,628
22.9
24.4
27.6
30.0
12.2
11.2
5.3
5.3
33.9
33.2
2.0
1.8
Hind. Zinc
Neutral
123
-
51,866
15,546
16,821
47.5
49.0
19.7
20.3
6.2
6.0
1.1
0.9
17.2
16.6
1.1
0.7
Hindalco
Neutral
79
-
16,282
112,328
119,817
7.7
7.9
16.3
20.1
4.9
3.9
0.4
0.3
8.0
8.5
0.6
0.5
JSW Steel
Neutral
865
-
20,897
48,125
53,595
18.8
21.0
46.9
97.5
18.4
8.9
0.9
0.8
4.4
9.5
1.2
1.1
NMDC
Neutral
93
-
36,991
12,544
13,330
59.5
59.7
16.3
16.5
5.7
5.7
1.0
1.0
5.1
9.9
1.7
1.7
SAIL
Neutral
50
-
20,795
56,365
63,383
6.9
8.0
7.1
8.2
7.1
6.2
0.4
0.4
7.0
7.1
0.9
0.8
Vedanta
Neutral
81
-
24,044
81,842
88,430
30.6
32.8
20.2
25.7
4.0
3.2
0.3
0.3
7.5
8.5
0.7
0.5
Tata Steel
Neutral
206
-
20,022
136,805
149,228
11.3
11.9
26.4
36.8
7.8
5.6
0.6
0.6
6.0
8.0
0.7
0.6
Oil & Gas
Cairn India
Neutral
123
-
23,023
12,617
14,513
33.7
40.0
25.5
27.7
4.8
4.4
0.4
0.3
7.4
7.7
0.5
0.4
GAIL
Neutral
272
-
34,490
75,595
85,554
8.6
8.0
31.8
36.1
8.5
7.5
0.9
0.9
10.7
11.4
0.6
0.5
ONGC
Neutral
227
-
194,509
174,773
192,517
22.7
24.8
34.6
38.2
6.6
6.0
0.9
0.9
14.2
14.9
1.2
1.1
Petronet LNG
Buy
170
210
12,784
39,007
40,785
3.8
4.2
9.2
11.0
18.6
15.5
2.1
1.9
11.6
12.7
0.4
0.4
Reliance Industries
Buy
829
1,050
268,426
339,083
384,014
7.8
9.5
75.7
94.5
11.0
8.8
1.1
1.0
10.7
12.2
1.1
1.0
Pharmaceuticals
Alembic Pharma
Neutral
668
-
12,592
2,601
3,115
21.2
20.2
20.8
23.9
32.1
28.0
10.3
7.8
37.2
31.8
4.9
4.0
Aurobindo Pharma
Buy
713
824
41,619
14,435
16,600
22.6
22.6
36.1
41.2
19.7
17.3
5.9
4.5
34.5
29.3
3.2
2.8
Aventis*
Neutral
3,917
-
9,022
2,156
2,455
15.1
16.8
109.7
133.9
35.7
29.3
4.9
4.0
18.4
22.5
3.9
3.2
Cadila Healthcare
Neutral
1,845
-
37,768
10,224
11,840
20.0
21.0
71.0
85.6
26.0
21.6
7.0
5.5
30.1
28.5
3.8
3.2
Cipla
Neutral
635
-
50,969
14,051
16,515
20.4
18.7
26.6
28.4
23.9
22.4
4.0
3.4
18.2
16.5
3.6
3.0
Dr Reddy's
Neutral
4,046
-
68,970
17,903
20,842
22.7
22.8
160.5
189.5
25.2
21.4
5.1
4.2
22.2
21.7
3.8
3.2
Dishman Pharma
Buy
185
259
1,494
1,716
1,888
20.2
20.2
16.3
21.6
11.4
8.6
1.1
1.0
9.7
11.7
1.1
0.8
GSK Pharma*
Neutral
3,410
-
28,887
2,870
3,158
20.0
22.1
59.5
68.3
57.3
49.9
16.9
17.4
28.5
34.3
9.6
8.7
Indoco Remedies
Neutral
311
-
2,868
1,088
1,262
18.2
18.2
13.1
15.5
23.8
20.1
4.6
3.9
21.2
21.1
2.7
2.3
Ipca labs
Neutral
800
-
10,095
3,507
4,078
17.6
18.6
25.8
32.0
31.0
25.0
4.0
3.5
13.8
14.9
3.1
2.7
Lupin
Neutral
1,803
-
81,104
14,864
17,244
26.9
26.9
62.1
71.1
29.0
25.4
7.1
5.6
27.4
24.6
5.2
4.3
Sun Pharma
Accumulate
891
950
214,450
28,163
32,610
25.8
30.7
17.4
26.9
51.2
33.1
4.9
4.2
13.0
16.6
7.1
5.9
Power
Tata Power
Neutral
62
-
16,836
38,302
38,404
14.1
13.1
5.1
6.0
12.1
10.4
1.2
1.1
9.2
10.3
1.4
1.3
NTPC
Buy
115
157
94,740
87,064
98,846
23.5
23.5
11.7
13.2
9.8
8.7
1.1
1.0
11.4
12.1
2.1
1.9
Power Grid
Buy
131
170
68,665
20,702
23,361
86.7
86.4
12.1
13.2
10.9
9.9
1.6
1.4
15.6
15.1
8.2
7.7
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Market Outlook
August 25, 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
Telecom
Bharti Airtel
Accumulate
349
384
139,669
101,748
109,191
32.1
31.7
12.0
12.5
29.1
28.0
2.0
1.9
6.9
6.7
2.0
1.8
Idea Cellular
Buy
147
171
52,865
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
4,714
-
10,017
2,715
3,153
14.5
14.1
134.3
152.2
35.1
31.0
8.8
7.2
27.4
25.6
3.4
2.9
Bajaj Electricals
Buy
234
341
2,357
4,719
5,287
5.2
5.8
8.6
12.7
27.3
18.5
3.1
2.7
11.4
14.8
0.5
0.4
Finolex Cables
Neutral
233
-
3,567
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
543
655
1,251
1,953
1,766
12.4
12.0
67.4
59.6
8.1
9.1
2.0
1.7
27.7
20.2
0.4
0.4
Hitachi
Neutral
1,289
-
3,505
1,806
2,112
9.0
9.2
28.6
29.1
45.1
44.3
11.2
9.0
28.1
22.6
2.0
1.7
Jyothy Laboratories
Neutral
275
-
4,981
1,620
1,847
11.5
11.5
7.3
8.5
37.7
32.5
4.9
4.5
13.3
14.4
2.9
2.5
MRF
Accumulate
38,822
43,575
16,465
20,727
14,841
19.3
18.6
4,905.8
3,351.9
7.9
11.6
2.5
2.1
37.6
19.6
0.7
1.0
Page Industries
Neutral
13,318
-
14,855
1,929
2,450
19.8
20.1
229.9
299.0
57.9
44.6
25.6
17.8
52.1
47.1
7.7
6.1
Relaxo Footwears
Neutral
512
-
6,140
1,767
2,152
12.3
12.5
19.3
25.1
26.6
20.4
6.5
5.0
27.7
27.8
3.5
2.9
Siyaram Silk Mills
Buy
1,018
1,221
955
1,653
1,873
11.7
12.2
99.3
122.1
10.3
8.3
1.8
1.6
19.5
20.2
0.7
0.6
Styrolution ABS India*
Neutral
714
-
1,256
1,271
1,440
8.6
9.2
32.0
41.1
22.3
17.4
2.3
2.0
10.7
12.4
1.0
0.8
Tree House
Buy
371
433
1,571
259
324
56.8
56.8
17.0
21.7
21.8
17.1
2.2
2.0
10.1
11.5
6.0
4.9
TVS Srichakra
Buy
2,654
3,210
2,032
2,127
2,388
15.2
14.9
237.7
267.5
11.2
9.9
4.8
3.4
51.7
39.8
1.0
0.9
HSIL
Buy
261
434
1,885
2,085
2,436
18.5
18.6
21.7
28.9
12.0
9.0
1.2
1.1
10.0
12.1
1.0
0.8
Kirloskar Engines India
Accumulate
278
297
4,027
2,634
3,252
10.1
12.0
10.9
17.4
25.5
16.0
2.9
2.6
11.4
16.8
1.2
0.9
Ltd
M M Forgings
Buy
630
797
760
563
671
22.1
22.9
51.0
66.5
12.4
9.5
2.6
2.1
23.1
24.1
1.5
1.2
Banco Products (India)
Neutral
117
-
839
1,208
1,353
11.0
12.3
10.8
14.5
10.9
8.1
1.2
1.1
11.9
14.5
0.7
0.6
Competent Automobiles Neutral
159
-
98
1,007
1,114
3.1
3.1
23.7
28.2
6.7
5.7
0.9
0.8
13.9
14.6
0.1
0.1
Nilkamal
Accumulate
891
1,005
1,329
1,948
2,147
10.6
10.3
60.0
67.0
14.8
13.3
2.3
2.0
16.8
16.1
0.7
0.6
Visaka Industries
Accumulate
148
166
236
1,158
1,272
8.6
9.5
23.7
32.7
6.3
4.5
0.6
0.6
10.1
12.5
0.4
0.3
Transport Corporation of
Buy
235
293
1,786
2,830
3,350
8.8
9.0
14.4
18.3
16.3
12.8
2.5
2.2
15.4
17.1
0.8
0.7
India
Elecon Engineering
Buy
70
87
763
1,452
1,596
14.0
14.7
4.4
6.2
15.9
11.2
1.3
1.2
8.6
11.2
0.8
0.7
Surya Roshni
Buy
115
183
503
2,992
3,223
8.3
8.5
14.7
18.3
7.8
6.3
0.7
0.7
9.8
11.0
0.5
0.4
MT Educare
Buy
128
169
509
286
366
18.3
17.7
7.7
9.4
16.5
13.6
3.5
3.1
20.2
21.1
1.7
1.3
Radico Khaitan
Buy
90
112
1,199
1,565
1,687
11.9
12.4
5.4
6.6
16.6
13.7
1.3
1.2
8.0
9.0
1.3
1.2
Garware Wall Ropes
Buy
288
390
652
875
983
10.4
10.6
23.1
27.8
12.5
10.4
1.8
1.5
14.1
14.8
0.7
0.6
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 24, 2015
www.angelbroking.com
Market Outlook
August 25, 2015
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
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