Market Outlook
July 27, 2016
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are expected to open flat tracking SGX Nifty.
BSE Sensex
(0.4)
(119)
27,977
Nifty
(0.5)
(45)
8,591
The S&P 500 and the Nasdaq closed slightly higher on Tuesday, while the Dow
Jones closed lower. This was due to investors showing caution ahead of the policy
Mid Cap
0.2
21
12,421
decision from the Federal Reserve. The Dow industrials was weighed down by shares
Small Cap
(0.7)
(85)
12,150
of McDonalds Corp which closed 4.5% lower. The S&P 500 advanced 0.70 points,
Bankex
(0.7)
(159)
21,570
or less than 0.1%, as the materials and industrials sectors rallied and the telecom
and utilities sectors declined. The Nasdaq rose 12.42 points, or 0.2%, to finish at
Global Indices
Chg (%)
(Pts)
(Close)
5,110.05, for its highest close of 2016.
Dow Jones
(0.1)
(19)
18,474
European equities had a mixed session, swinging between gains and losses amid
Nasdaq
0.2
12
5,110
earnings announcements, before closing little changed. Another reason for caution
was the upcoming announcements by central banks later in the week.
FTSE
0.2
14
6,724
Nikkei
(1.4)
-237
16,383
News Analysis
Hang Seng
0.6
136
22,130
Results Review: Dr Reddy’s Labs, ACC and Ambuja Cement
Shanghai Com
1.1
34
3,050
Detailed analysis on Pg2
Investor’s Ready Reckoner
Advances / Declines
BSE
NSE
Key Domestic & Global Indicators
Advances
1,026
538
Stock Watch: Latest investment recommendations on 150+ stocks
Declines
1,688
1,075
Refer Pg7 onwards
Unchanged
199
61
Top Picks
CMP
Target
Upside
Volumes (` Cr)
Company
Sector
Rating
(`)
(`)
(%)
BSE
4,139
Amara Raja
Auto/Auto Ancillary
Buy
891
1,076
20.8
NSE
23,506
HCL Tech
IT
Buy
745
1,000
34.3
LIC Housing
Financials
Accumulate
513
582
13.5
Net Inflows (` Cr)
Net
Mtd
Ytd
Bharat Electronics
Capital Goods
Accumulate
1,226
1,414
15.3
Navkar Corporation Others
Buy
208
265
27.6
FII
804
7,926
27,470
More Top Picks on Pg5
MFs
(14)
(25)
9,320
Key Upcoming Events
Top Gainers
Price (`)
Chg (%)
Previous
Consensus
Date
Region
Event Description
Reading
Expectations
Jindalstel
80
14.8
July 27
US
FOMC rate decision
0.50
0.50
Bajfinance
9,853
9.8
July 27
UK
GDP (YoY)
2.00
2.10
Amtekauto
52
7.5
July 28 Euro Zone
Euro Zone Consumer Confidence
(7.9)
(7.9)
Jppower
7
6.1
July 28
US
Initial Jobless claims
253.0
260.5
6.(
Feldvr
20
5.0
More Events on Pg6
Top Losers
Price (`)
Chg (%)
Unitech
7
(8.5)
Fsl
49
(6.7)
Edelweiss
89
(5.1)
Naukri
827
(5.0)
Atul
1,980
(4.8)
As on July 26, 2016
Market Outlook
July 27, 2016
Result Review
Dr Reddy’s Lab’s (CMP: `3,475 / TP: /Upside:)
For 1QFY2017, the company posted bad numbers. It posted sales of `3235cr V/s
`3900cr expected V/s `3,758crin 1QFY2016, a yoy de-growth of 14.0%. Sales
growth of company will be under pressure on back of muted de-growth in all its
major markets.
The Generic (`2663.8cr), a yoy de-growth of 14.0%, lead by USA, Europe and
Emerging markets, which posted a de-growth of 16%, 16% and 26% respectively.
Indian markets on the other hand posted a yoy growth of 10.0%. The PSAI
(`469.2cr), posted a de-growth of 16%. The proprietary products and others,
posted a flat yoy growth of 1.0% to end the period at `101.5cr.
Lower sales, lead the company posted EBIT of 3.4% V/s 15.6% expected and
20.2% in 1QFY2016. However, other income of around `61cr V/s `34cr in
1QFY2016, lead the net profit of `126cr V/s `520cr expected and V/s `626cr in
1QFY2016, a yoy de-growth of 80.0%. We maintain our neutral rating on the
stock.
Y/E
Sales OPM
PAT
EPS ROE P/E P/BV EV/EBITDA EV/Sales
Mar
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
17,479
24.6
2,600
152.4
18.7
22.8
3.9
13.6
3.3
FY2018E
20,021
24.2
2,965
173.8
18.2
20.0
4.0
11.9
2.9
Ambuja Cement
Ambuja Cements has come out with an impressive set of results for the quarter
with 77% YoY growth in PAT at `400cr. While the volume for the quarter declined
2% YoY to 5.76 Mn Tons compared to 5.88 Mn Tons. Realisations / Ton have
been strong which was up 4.1% YoY to `4,412 cr better than expected. While net
sales grew by only 2% to `2,541cr, EBITDA grew by 57% YoY to `601cr.
EBITDA margins expanded to 23.6% vs 18.6% QoQ largely aided by savings in
fuel cost and freight cost. The broader numbers are impressive and the outlook
also is positive for the company now, as the parent company of Ambuja has got
the approval for simplification of the holding structure in India. However, looking
at the recent rally in the stock we will advise investors to wait for any corrections to
get into the stock. At the current level we have a NEUTRAL rating on the stock
ACC Volumes disappoints, while margins improved:
ACC reported `238cr of PAT for 2QCY16 ; bottom-line has been little lower than
expectations. The company seems reported 1.3% decline in sales volume to 6.12
Mn Tons compared to 6.2 Mn tons. Realisation per ton declined 2.7% YoY and
hence revenues declined by 3.1% YoY. However, EBITDA margins of 15.9% seem
decent and EBITDA growth of 37% is more or less in line with expectations.
Margins have got a boost backed by 13% decline in power cost per ton to `853
and 10% decline in freight cost per ton to `1,068. Consequently the EBITDA / Ton
improved by 39% YoY to `746, due to low base effect. While the simplifications of
the holding structure is a good move the stock is trading at premium valuations
Market Outlook
July 27, 2016
and further re-rating will be a function of higher volume and better realisation,
which could take time.
Economic and Political News
State Governments reject GST rate proposal by Arvind Subramanian Panel
CAG finds inadequacies in the coal mine auctions
Central Govt. employees to get salary hikes in August, under the seventh pay
commission
Corporate News
Maharashtra govt orders audit of Tata Power, Reliance InfraIL&FS Eng. wins
Nagpur metro rail project for `532.67cr
Air India gets approval from Finance ministry to revamp bailout package
ONGC agrees to extension of Cairn India’s contract at its Barmer oilfield for
10 more years
Quarterly Bloomberg Brokers Consensus Estimate
Asian Paints Ltd Consol - July 27, 2016
Particulars (` cr)
1QFY17E
1QFY16
y-o-y (%)
4QFY16
q-o-q (%)
Net sales
3,033
2,961
2.4
2,927
3.6
EBITDA
451
334
35.1
433
4.1
EBITDA margin (%)
14.9
11.3
14.8
Net profit
245
131
86.7
232
5.7
Bharti Airtel Ltd Consol - July 27, 2016
Particulars (` cr)
1QFY17E
1QFY16
y-o-y (%)
4QFY16
q-o-q (%)
Net sales
25,495
23,671
7.7
24,960
2.1
EBITDA
9,269
8,256
12.3
9,136
1.5
EBITDA margin (%)
36.4
34.9
36.6
Net profit
1,391
1,554
(10.5)
1,590
(12.5)
JSW Steel Ltd Consol - July 27, 2016
Particulars (` cr)
1QFY17E
1QFY16
y-o-y (%)
4QFY16
q-o-q (%)
Net sales
12,429
11,382
9.2
10,471
18.7
EBITDA
2,664
1,627
63.7
1,825
46.0
EBITDA margin (%)
21.4
14.3
17.4
Net profit
760
(107)
0.0
170
346.8
Bajaj Auto Ltd - July 27, 2016
Particulars (` cr)
1QFY17E
1QFY16
y-o-y (%)
4QFY16
q-o-q (%)
Net sales
5,960
5,505
8.3
5,304
12.4
EBITDA
1,236
1,140
8.4
1,152
7.3
EBITDA margin (%)
20.7
20.7
21.7
Net profit
955
1,015
(5.9)
803
18.9
Market Outlook
July 27, 2016
Shriram Transport Finance Co Ltd - July 27, 2016
Particulars (` cr)
1QFY17E
1QFY16
y-o-y (%)
4QFY16 q-o-q (%)
Net profit
387
321
20.6
144
169.0
Housing Development Finance Corp - July 27, 2016
Particulars (` cr)
2QCY16E
2QCY15
y-o-y (%)
1QCY16 q-o-q (%)
Net profit
1,959
1,361
43.9
2,607
(24.9)
Dabur India Ltd Consol - July 27, 2016
Particulars (` cr)
1QFY17E
1QFY16
y-o-y (%)
4QFY16 q-o-q (%)
Net sales
2,275
2,064
10.2
2,157
5.5
EBITDA
368
322
14.4
415
(11.4)
EBITDA margin (%)
16.2
15.6
19.3
Net profit
300
261
15.0
332
(9.5)
Yes Bank Ltd - July 27, 2016
Particulars (` cr)
1QFY17E
1QFY16
y-o-y (%)
4QFY16 q-o-q (%)
Net profit
705
551
27.9
702
0.4
Market Outlook
July 27, 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
15,219
891
1,076
20.8
products leading to market share gains in both the automotive
OEM and replacement segments.
Uptick in defense capex by government, coupled with BELs
Bharat Electronics
29,432
1,226
1,414
15.3
strong market positioning, indicate good times ahead for BEL.
HCL Tech
1,05,045
745
1,000
34.3
Stock is trading at attractive valuations & factors all bad news.
Back on the growth trend, expect a long term growth of 14% to
Infosys
2,50,091
1,089
1,374
26.2
be a US$20bn in FY2020.
Continues to grow its retail loan book at healthy pace with
LIC Housing Fin.
25,882
513
582
13.5
improvement in asset quality. Expect LICHF to post a healthy
loan book which is likely to reflect in a strong earnings growth.
Strong market positioning within the domestic AC markets to
Voltas
11,320
342
407
19.0
continue, EMP business set to revive
Source: Company, Angel Research
Mid Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
Among the top 4 players in the consumer durables segment.
Bajaj Electricals
2,394
237
268
13.1
Improved profitability backed by turn around in E&P segment.
Strong order book lends earnings visibility.
Favourable outlook for AC industry to augur well for Cooling
Blue Star
4,530
475
495
4.2
products business. EMPPAC division`s profitability to improve
once operating environment turns around.
With a focus on the low and medium income (LMI) consumer
Dewan Housing
6,474
222
270
21.7
segment, the company has increased its presence in tier-II & III
cities where the growth opportunity is immense.
Strong loan growth backed by diversified loan portfolio and
Equitas Holdings
6,515
194
235
21.0
adequate CAR. ROE & ROA likely to remain decent as risk of
dilution remains low. Attractive valuations considering growth.
Expectations of above average monsoon augurs well for
Goodyear India
1,215
527
631
19.8
Goodyear India as it derives ~50% of its turnover from farm
tyre segment.
Commencement of new projects, downtrend in the interest rate
IL&FS Transport
2,595
79
93
17.9
cycle, to lead to stock re-rating
Economic recovery to have favourable impact on advertising &
Jagran Prakashan
5,844
179
205
14.7
circulation revenue growth. Further, the acquisition of a radio business
(Radio City) would also boost the company`s revenue growth.
Speedier execution and speedier sales, strong revenue visibility
Mahindra Lifespace
1,870
456
554
21.5
in short-to-long run, attractive valuations
Massive capacity expansion along with rail advantage at ICD
Navkar Corporation
2,961
208
265
27.6
as well CFS augurs well for the company
Earnings boost on back of stable material prices and
Radico Khaitan
1,223
92
125
35.9
favourable pricing environment. Valuation discount to peers
provides additional comfort
Strong brands and distribution network would boost growth
Siyaram Silk Mills
983
1,048
1,347
28.5
going ahead. Stock currently trades at an inexpensive
valuation.
Source: Company, Angel Research
Market Outlook
July 27, 2016
Key Upcoming Events
Result Calendar
Date
Company
July 27, 2016
Bajaj Auto, Ambuja Cements, Asian Paints, JSW Steel
July 28, 2016
FAG Bearings, CEAT, Punjab Natl.Bank, Syndicate Bank, Hexaware, Tree House, GSK Pharma
July 29, 2016
United Phosphorus, KEC International, PVR, Sesa Goa, Alembic Pharma, Indoco Remedies, Narayana Hrudaya
July 30, 2016
Relaxo, Nilkamal
August 01, 2016
Tech Mahindra, Banco, Interglobe Aviation, VRL Logistics
August 02, 2016
Indian Bank
August 03, 2016
Ramco Cements, HCL Tech, Cadila Healthcare
August 04, 2016
Kirloskar Engines India Ltd, Tata Power Co.
Source: Bloomberg, Angel Research
Global economic events release calendar
Bloomberg Data
Date
Time Country Event Description
Unit
Period
Last Reported Estimated
Jul 27, 2016
11:30 PM
US
FOMC rate decision
% Jul 27
0.50
0.50
2:00 PM
UK
GDP (YoY)
% Change 2Q A
2.00
2.10
Jul 28, 2016
2:30 PM Euro Zone
Euro-Zone Consumer Confidence
Value
Jul F
(7.90)
(7.90)
6:00 PM
US
GDP Qoq (Annualised)
% Change 2Q A
1.10
2.60
6:00 PM
US
Initial Jobless claims
Thousands Jul 23
253.00
260.50
Jul 29, 2016
1:25 PM
Germany
Unemployment change (000's)
Thousands
Jul
(6.00)
(4.00)
2:30 PM Euro Zone
Euro-Zone GDP s.a. (QoQ)
% Change 2Q A
0.60
0.30
Aug 01, 2016
1:25 PM
Germany
PMI Manufacturing
Value
Jul F
53.70
2:00 PM
UK
PMI Manufacturing
Value
Jul F
49.10
6:30 AM
China
PMI Manufacturing
Value
Jul
50.00
50.00
Source: Bloomberg, Angel Research
Market Outlook
July 27, 2016
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
9.0
8.3
12.0
9.9
7.8
7.7
7.9
10.0
8.0
7.5
7.6
7.2
8.0
6.3
6.7
6.6
6.7
7.0
6.4
6.0
4.3
3.7
5.8
4.0
6.0
1.9
1.2
2.0
0.3
5.0
-
4.0
(2.0)
(0.9)
(1.3)
(1.6)
(4.0)
3.0
(3.4)
(6.0)
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
(%)
7.0
54.0
5.7
5.8
5.8
5.4
5.6
5.5
6.0
5.3
5.0
4.8
52.0
5.0
4.4
3.7
3.7
4.0
50.0
3.0
48.0
2.0
46.0
1.0
-
44.0
Source: MOSPI, Angel Research
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Exhibit 5: Exports and imports growth trends
Exhibit 6: Key policy rates
(%)
Exports yoy growth
Imports yoy growth
(%)
Repo rate
Reverse Repo rate
CRR
5.0
7.50
0.0
7.00
(5.0)
6.50
6.00
(10.0)
5.50
(15.0)
5.00
(20.0)
4.50
(25.0)
4.00
(30.0)
3.50
(35.0)
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
Market Outlook
July 27, 2016
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
6.7
6.0
5.3
4.9
4.2
4.0
3.2
2.0
2.1
2.0
1.3
1.3
0.1
-
(2.0)
(4.0)
(1.2)
(6.0)
(5.4)
(0.2)
(8.0)
Source: Bloomberg, Angel Research
Exhibit 2: 2016 GDP Growth projection by IMF (%, yoy) across select developing and developed countries
(%)
10.0
7.5
8.0
6.5
6.0
4.9
4.4
4.0
3.0
2.4
1.9
1.5
2.0
1.1
0.6
0.5
(3.8)
(1.8)
-
(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)
20.0
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
-
Source: IMF, Angel Research
Market Outlook
July 27, 2016
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
56,783
13.3
7.0
10.3
Russia
Micex
1,939
2.9
(0.6)
21.5
India
Nifty
8,591
3.9
7.9
(0.1)
China
Shanghai Composite
3,050
5.4
3.5
(22.9)
South Africa
Top 40
46,788
2.7
0.6
2.0
Mexico
Mexbol
46,927
4.5
2.1
6.1
Indonesia
LQ45
902
9.9
7.6
9.9
Malaysia
KLCI
1,661
1.4
(3.5)
(3.8)
Thailand
SET 50
953
5.0
7.0
(2.5)
USA
Dow Jones
18,474
2.6
2.8
4.8
UK
FTSE
6,724
9.5
7.4
1.4
Japan
Nikkei
16,383
0.9
(3.1)
(19.9)
Germany
DAX
10,248
7.2
(0.1)
(9.0)
France
CAC
4,395
7.0
(3.6)
(14.0)
Source: Bloomberg, Angel Research
Stock Watch
July 27, 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
214
-
4,168
1,612
1,911
13.3
13.3
7.4
9.5
29.0
22.6
4.6
4.2
16.7
18.4
2.7
2.3
United Phosphorus
Buy
578
684
24,754
13,083
15,176
18.5
18.5
31.5
37.4
18.3
15.4
3.7
3.0
21.4
21.4
2.1
1.7
Auto & Auto Ancillary
Ashok Leyland
Buy
95
111
26,908
17,995
21,544
11.4
11.6
3.4
4.7
27.8
20.1
4.9
4.5
17.7
22.2
1.5
1.2
Bajaj Auto
Neutral
2,670
-
77,265
22,709
25,860
20.9
20.1
129.0
143.6
20.7
18.6
6.4
5.5
30.7
29.4
3.0
2.6
Bharat Forge
Buy
737
875
17,152
7,351
8,318
19.9
19.7
31.2
36.5
23.6
20.2
4.2
3.6
19.3
19.2
2.5
2.2
Eicher Motors
Neutral
20,112
-
54,627
15,556
16,747
15.5
17.3
464.8
597.5
43.3
33.7
15.8
11.6
36.2
34.3
3.4
3.1
Gabriel India
Neutral
105
-
1,506
1,415
1,544
8.7
9.0
4.6
5.4
22.8
19.4
4.1
3.7
18.1
18.9
1.0
0.9
Hero Motocorp
Neutral
3,210
-
64,106
28,244
30,532
15.5
15.9
156.7
168.5
20.5
19.1
8.2
6.9
39.9
36.4
2.2
2.0
Jamna Auto Industries Neutral
176
-
1,407
1,281
1,473
11.2
11.5
7.6
9.2
23.2
19.1
5.9
4.8
25.4
25.2
1.2
1.0
L G Balakrishnan & Bros Neutral
477
-
749
1,254
1,394
11.6
11.8
35.9
41.7
13.3
11.5
1.8
1.6
13.5
13.8
0.7
0.7
Mahindra and Mahindra Neutral
1,450
-
90,062
38,416
42,904
13.7
13.9
54.8
63.4
26.5
22.9
4.1
3.6
15.4
15.8
2.0
1.7
Maruti
Neutral
4,485
-
135,490
57,865
68,104
16.4
16.7
176.3
225.5
25.4
19.9
4.9
4.2
19.4
21.2
2.2
1.8
Minda Industries
Neutral
1,170
-
1,856
2,523
2,890
8.7
9.0
55.0
65.4
21.3
17.9
4.1
3.3
19.3
18.7
0.8
0.7
Motherson Sumi
Neutral
316
-
41,825
39,343
45,100
8.8
9.1
10.1
12.5
31.3
25.3
9.9
7.8
35.3
34.4
1.2
1.0
Rane Brake Lining
Neutral
600
-
475
454
511
11.5
12.0
25.2
31.0
23.8
19.4
3.6
3.2
14.9
16.6
1.2
1.1
Setco Automotive
Neutral
49
-
655
594
741
12.7
13.7
1.7
3.2
28.8
15.3
3.0
2.6
10.4
16.9
1.6
1.3
Tata Motors
Neutral
503
-
145,270
259,686
273,957
13.0
13.4
25.9
29.5
19.4
17.1
2.5
2.2
8.0
9.0
0.7
0.7
TVS Motor
Accumulate
291
330
13,844
11,263
13,122
6.9
8.5
9.2
15.0
31.7
19.4
7.2
5.8
22.7
29.6
1.3
1.1
Amara Raja Batteries
Buy
891
1,076
15,219
4,690
5,429
17.5
17.5
28.5
35.3
31.3
25.2
7.3
5.9
23.1
25.9
3.3
2.8
Exide Industries
Neutral
177
-
15,045
6,950
7,784
14.4
14.8
6.6
7.3
26.8
24.3
3.4
3.1
12.6
12.8
1.9
1.7
Apollo Tyres
Accumulate
161
183
8,211
12,056
12,714
17.2
16.4
23.0
20.3
7.0
8.0
1.2
1.1
17.7
13.6
0.7
0.8
Ceat
Buy
868
1,119
3,510
6,041
6,597
14.1
13.7
99.5
111.9
8.7
7.8
1.7
1.4
19.6
18.5
0.8
0.6
JK Tyres
Neutral
91
-
2,070
7,446
7,669
15.2
14.0
19.6
18.4
4.7
5.0
1.2
1.0
25.2
19.5
0.7
0.6
Swaraj Engines
Neutral
1,189
-
1,477
552
630
14.2
14.7
44.6
54.1
26.7
22.0
6.2
5.6
23.2
25.6
2.5
2.1
Subros
Neutral
96
-
576
1,293
1,527
11.8
11.9
4.2
6.7
22.9
14.3
1.7
1.6
7.7
11.5
0.8
0.6
Indag Rubber
Neutral
182
-
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
49
-
483
660
839
4.7
8.2
1.0
3.9
48.8
12.5
1.5
1.4
3.2
11.3
0.9
0.7
BEML
Buy
973
1,157
4,050
3,277
4,006
6.0
8.9
36.2
64.3
26.9
15.1
1.9
1.7
5.7
11.7
1.3
1.0
Bharat Electronics
Accumulate
1,226
1,414
29,432
7,295
8,137
20.0
16.8
56.5
58.7
21.7
20.9
3.2
2.9
42.1
44.6
3.3
2.8
Stock Watch
July 27, 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
342
407
11,320
5,857
6,511
7.5
7.9
11.7
12.9
29.2
26.5
4.8
4.2
17.1
16.7
1.9
1.7
BGR Energy
Neutral
124
-
894
3,615
3,181
9.5
9.4
16.7
12.4
7.4
10.0
0.7
0.7
10.0
7.0
0.7
0.8
BHEL
Neutral
147
-
36,029
33,722
35,272
10.8
11.7
10.5
14.2
14.0
10.4
1.0
1.0
7.0
9.0
1.1
1.1
Blue Star
Accumulate
475
495
4,530
3,770
4,351
5.7
6.4
11.4
17.2
41.6
27.7
6.5
6.0
18.4
23.1
1.2
1.1
Crompton Greaves
Neutral
73
-
4,556
13,484
14,687
4.9
6.2
4.5
7.1
16.2
10.2
1.1
1.1
7.2
10.8
0.5
0.4
Greaves Cotton
Neutral
142
-
3,468
1,655
1,755
16.6
16.8
7.4
7.8
19.2
18.2
3.8
3.6
21.1
20.6
2.1
1.9
Inox Wind
Buy
229
286
5,083
5,605
6,267
15.7
16.4
24.8
30.0
9.2
7.6
2.6
1.9
25.9
24.4
1.0
0.9
KEC International
Neutral
141
-
3,637
8,791
9,716
6.1
6.8
5.4
8.2
26.2
17.3
2.6
2.4
10.0
14.0
0.6
0.6
Thermax
Neutral
891
-
10,622
6,413
7,525
7.4
8.5
30.5
39.3
29.2
22.7
4.5
3.9
15.0
17.0
1.7
1.4
VATech Wabag
Buy
581
681
3,167
3,136
3,845
8.9
9.1
26.0
35.9
22.3
16.2
2.8
2.4
13.4
15.9
0.9
0.7
Cement
ACC
Neutral
1,673
-
31,412
13,151
14,757
16.4
18.3
63.9
83.4
26.2
20.1
3.4
3.1
13.3
16.1
2.2
1.9
Ambuja Cements
Neutral
270
-
41,893
11,564
12,556
19.4
20.7
8.9
10.1
30.3
26.7
3.8
3.6
12.8
13.8
3.3
3.0
HeidelbergCement
Neutral
128
-
2,894
1,772
1,926
13.3
15.4
1.0
3.0
127.7
42.6
3.2
3.0
2.6
7.9
2.2
1.9
India Cements
Neutral
115
-
3,528
4,216
4,840
18.0
19.5
4.0
9.9
28.7
11.6
1.1
1.1
4.0
9.5
1.2
1.0
JK Cement
Neutral
699
-
4,889
3,661
4,742
10.1
15.8
7.5
28.5
93.2
24.5
2.8
2.5
7.5
22.9
1.8
1.4
J K Lakshmi Cement
Neutral
421
-
4,950
2,947
3,616
16.7
19.9
11.5
27.2
36.6
15.5
3.5
3.0
9.8
20.8
2.1
1.7
Mangalam Cements
Neutral
299
-
798
1,053
1,347
10.5
13.3
8.4
26.0
35.6
11.5
1.5
1.4
4.3
12.5
1.1
0.9
Orient Cement
Neutral
168
-
3,444
1,854
2,524
21.2
22.2
7.7
11.1
21.8
15.1
3.1
2.7
13.3
15.7
2.6
1.8
Ramco Cements
Neutral
557
-
13,249
4,036
4,545
20.8
21.3
15.1
18.8
36.9
29.6
4.5
4.0
12.9
14.3
3.8
3.3
Shree Cement^
Neutral
15,975
-
55,651
7,150
8,742
26.7
28.6
228.0
345.5
70.1
46.2
10.3
8.7
15.7
20.3
7.6
6.1
UltraTech Cement
Neutral
3,631
-
99,642
24,669
29,265
18.2
20.6
82.0
120.0
44.3
30.3
4.8
4.2
11.3
14.7
4.1
3.5
Construction
ITNL
Buy
79
93
2,595
7,360
8,682
34.0
32.2
7.0
8.6
11.3
9.2
0.4
0.4
3.2
2.5
3.7
3.6
KNR Constructions
Neutral
576
-
1,619
937
1,470
14.3
14.0
44.2
38.6
13.0
14.9
2.6
2.3
15.4
15.4
1.8
1.2
Larsen & Toubro
Accumulate
1,591
1,700
148,320
58,870
65,708
8.3
10.3
42.0
53.0
37.9
30.0
2.6
2.4
8.8
11.2
2.7
2.5
Gujarat Pipavav Port
Neutral
179
-
8,670
629
684
51.0
52.2
6.4
5.9
28.0
30.4
3.7
3.4
15.9
12.7
13.7
12.4
MBL Infrastructures
Buy
136
285
562
2,313
2,797
12.2
14.6
19.0
20.0
7.1
6.8
0.7
0.7
11.3
10.6
1.0
0.9
Nagarjuna Const.
Neutral
81
-
4,511
7,892
8,842
8.8
9.1
3.0
5.3
27.1
15.3
1.4
1.3
5.0
8.5
0.8
0.7
PNC Infratech
Buy
563
647
2,889
1,873
2,288
13.2
13.5
24.0
32.0
23.5
17.6
2.3
2.0
12.1
12.3
1.6
1.3
Simplex Infra
Neutral
310
-
1,534
5,955
6,829
10.3
10.5
16.0
31.0
19.4
10.0
1.0
0.9
5.3
9.9
0.8
0.6
Stock Watch
July 27, 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
Power Mech Projects
Neutral
565
-
831
1,539
1,801
12.8
12.7
59.0
72.1
9.6
7.8
1.4
1.2
18.6
16.8
0.5
0.5
Sadbhav Engineering
Neutral
292
-
5,006
3,186
3,598
10.2
10.3
8.0
9.0
36.5
32.4
3.4
3.0
9.4
9.9
1.9
1.7
NBCC
Neutral
246
-
14,751
5,838
7,428
6.0
7.9
5.2
8.2
47.3
30.0
1.5
1.2
21.9
28.2
2.4
1.7
MEP Infra
Neutral
44
-
722
1,956
1,876
28.1
30.5
1.3
3.0
34.2
14.8
7.2
4.8
21.2
32.8
1.8
1.8
SIPL
Neutral
100
-
3,522
675
1,042
62.4
64.7
-
-
3.8
4.3
-
-
16.9
11.4
Engineers India
Neutral
224
-
7,544
1,667
1,725
13.5
16.0
9.7
11.4
23.1
19.6
2.7
2.6
11.7
13.4
3.4
3.4
Financials
Allahabad Bank
Neutral
79
-
5,679
8,569
9,392
2.8
2.9
16.3
27.5
4.8
2.9
0.5
0.4
7.6
11.9
-
-
Axis Bank
Neutral
554
-
132,143
26,204
29,738
3.6
3.5
34.5
35.4
16.0
15.6
2.5
2.2
16.8
14.9
-
-
Bank of Baroda
Neutral
154
-
35,530
18,802
21,088
2.0
2.2
(7.4)
13.0
11.9
1.2
1.0
(4.2)
7.3
-
-
Bank of India
Neutral
111
-
10,330
15,972
17,271
1.9
2.0
15.3
33.4
7.2
3.3
0.3
0.3
3.6
7.6
-
-
Canara Bank
Neutral
258
-
13,996
15,441
16,945
2.0
2.1
46.6
70.4
5.5
3.7
0.5
0.4
8.0
11.2
-
-
Dena Bank
Neutral
39
-
2,614
3,440
3,840
2.1
2.3
7.3
10.0
5.4
3.9
0.4
0.3
6.1
7.9
-
-
Dewan Housing Finance Buy
222
270
6,474
1,828
2,225
2.9
3.0
24.9
29.7
8.9
7.5
1.4
1.2
15.1
16.1
-
-
Equitas Holdings
Buy
194
235
6,515
679
1,076
12.4
11.7
6.2
6.7
31.4
29.0
3.9
2.9
13.3
12.5
-
-
Federal Bank
Neutral
64
-
11,057
3,279
3,787
2.8
2.9
3.9
5.5
16.3
11.6
1.3
1.2
8.4
10.8
-
-
HDFC
Neutral
1,368
-
216,213
10,358
11,852
3.3
3.3
41.1
47.0
33.3
29.1
6.3
5.8
24.7
24.9
-
-
HDFC Bank
Neutral
1,239
-
313,607
38,606
47,696
4.4
4.5
48.8
61.4
25.4
20.2
4.3
3.8
18.7
20.0
-
-
ICICI Bank
Neutral
262
-
152,432
34,279
39,262
3.3
3.3
21.0
24.4
12.5
10.8
2.1
1.8
14.4
14.7
-
-
IDBI Bank
Neutral
74
-
15,132
9,625
10,455
1.8
1.8
8.5
14.2
8.6
5.2
0.5
0.5
5.9
9.3
-
-
Indian Bank
Neutral
152
-
7,300
6,160
6,858
2.5
2.5
24.5
29.8
6.2
5.1
0.5
0.4
7.7
8.6
-
-
LIC Housing Finance
Accumulate
513
582
25,882
3,179
3,758
2.6
2.6
32.9
40.6
15.6
12.6
2.9
2.4
19.6
20.7
-
-
Oriental Bank
Neutral
115
-
3,990
7,643
8,373
2.4
2.4
37.2
45.4
3.1
2.5
0.3
0.2
8.2
9.4
-
-
Punjab Natl.Bank
Neutral
129
-
25,419
23,122
26,022
2.8
2.8
7.0
21.6
18.5
6.0
0.9
0.9
3.4
10.0
-
-
South Ind.Bank
Neutral
21
-
2,883
1,965
2,185
2.5
2.5
2.5
3.3
8.6
6.5
0.9
0.8
9.5
11.7
-
-
St Bk of India
Neutral
227
-
175,827
79,958
86,061
2.6
2.6
13.4
20.7
16.9
11.0
1.4
1.3
11.5
12.8
-
-
Union Bank
Neutral
130
-
8,916
12,646
14,129
2.3
2.4
31.0
39.1
4.2
3.3
0.5
0.4
9.8
11.4
-
-
Vijaya Bank
Neutral
42
-
4,240
3,536
3,827
1.9
1.9
5.5
6.7
7.7
6.4
0.6
0.6
7.8
8.8
-
-
Yes Bank
Neutral
1,200
-
50,530
7,190
9,011
3.2
3.3
58.2
69.7
20.6
17.2
3.7
3.1
19.2
19.6
-
-
FMCG
Asian Paints
Neutral
1,061
-
101,737
15,534
17,445
17.7
16.8
18.4
19.6
57.8
54.1
20.4
19.3
34.6
35.6
6.5
5.8
Stock Watch
July 27, 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
Britannia
Neutral
2,815
-
33,769
8,481
9,795
14.0
14.1
65.5
78.3
43.0
36.0
20.3
16.7
38.3
41.2
4.0
3.4
Colgate
Neutral
968
-
26,323
4,136
4,632
22.5
23.3
22.2
25.3
43.6
38.3
26.5
23.6
68.6
67.5
6.2
5.5
Dabur India
Neutral
303
-
53,364
9,370
10,265
17.6
17.3
7.3
8.1
41.4
37.5
10.7
9.8
31.7
30.6
5.6
5.1
GlaxoSmith Con*
Neutral
6,277
-
26,398
4,519
5,142
19.6
19.8
164.3
191.2
38.2
32.8
10.6
9.0
30.8
29.9
5.5
4.8
Godrej Consumer
Neutral
1,590
-
54,135
9,003
10,335
18.1
18.7
34.1
41.8
46.6
38.0
10.1
8.6
23.9
24.8
6.4
5.6
HUL
Neutral
903
-
195,377
33,194
35,252
17.8
17.6
19.0
20.4
47.5
44.2
41.8
36.3
87.4
82.2
5.7
5.4
ITC
Accumulate
252
283
303,641
36,837
40,059
38.7
39.0
8.2
9.1
30.9
27.7
8.6
7.5
27.8
27.2
7.7
7.1
Marico
Neutral
286
-
36,957
6,151
6,966
17.2
17.3
5.4
6.4
53.1
44.8
16.7
13.1
33.2
32.4
5.8
5.1
Nestle*
Neutral
7,141
-
68,849
9,393
10,507
22.2
22.3
106.8
121.8
66.9
58.6
23.5
21.1
34.8
36.7
7.1
6.3
Tata Global
Neutral
131
-
8,277
8,635
9,072
9.8
9.9
5.8
7.2
22.6
18.2
2.0
1.9
6.8
7.4
1.0
1.0
Procter & Gamble
Buy
6,342
7,369
20,587
2,588
2,939
23.3
23.2
130.2
146.2
48.7
43.4
97.1
93.1
27.6
25.3
7.6
6.6
Hygiene
IT
HCL Tech^
Buy
745
1,000
105,045
37,061
30,781
21.5
20.5
51.4
40.0
14.5
18.6
3.7
2.7
20.1
20.3
2.6
2.7
Infosys
Buy
1,089
1,374
250,091
62,441
70,558
27.5
27.5
59.0
65.3
18.5
16.7
3.7
3.4
22.2
22.4
3.4
2.9
TCS
Buy
2,548
3,004
502,124
108,646
122,770
28.3
28.3
123.7
141.0
20.6
18.1
6.8
6.3
33.1
34.6
4.2
3.6
Tech Mahindra
Buy
502
700
48,749
26,494
30,347
16.3
17.0
32.2
37.5
15.6
13.4
3.4
2.9
21.7
21.8
1.6
1.4
Wipro
Buy
547
680
135,111
50,808
56,189
23.7
23.8
37.3
40.7
14.7
13.4
2.8
2.6
19.2
17.7
2.1
1.7
Media
D B Corp
Neutral
403
-
7,407
2,025
2,187
27.4
27.4
17.4
18.9
23.2
21.4
5.2
4.8
22.9
23.7
3.7
3.4
HT Media
Neutral
80
-
1,859
2,495
2,673
12.9
13.2
6.8
7.2
11.7
11.1
0.9
0.9
7.5
7.8
0.3
0.3
Jagran Prakashan
Accumulate
179
205
5,844
2,107
2,355
33.5
28.0
10.1
10.8
17.8
16.6
4.1
3.6
23.3
21.7
2.9
2.5
Sun TV Network
Neutral
429
-
16,912
2,510
2,763
71.8
71.5
21.9
24.8
19.6
17.3
4.6
4.2
22.8
24.3
6.3
5.7
Hindustan Media
Neutral
273
-
2,004
914
1,016
21.7
21.5
21.9
23.3
12.5
11.8
2.2
1.9
18.0
16.2
1.6
1.4
Ventures
Metals & Mining
Coal India
Accumulate
328
380
207,366
76,167
84,130
19.9
22.3
22.4
25.8
14.6
12.7
5.3
5.2
35.5
41.0
2.1
1.9
Hind. Zinc
Neutral
203
-
85,584
14,641
14,026
50.4
50.4
17.7
16.0
11.5
12.7
1.8
1.6
16.2
13.2
3.3
3.2
Hindalco
Neutral
132
-
27,206
104,356
111,186
8.7
9.5
6.7
11.1
19.6
11.9
0.7
0.7
3.5
5.9
0.8
0.7
JSW Steel
Neutral
1,659
-
40,111
42,308
45,147
16.4
20.7
(10.3)
49.5
33.5
1.9
1.8
(1.0)
5.6
2.0
1.8
NMDC
Neutral
100
-
39,528
8,237
10,893
46.6
44.5
10.0
11.7
10.0
8.6
1.1
1.0
12.5
13.0
4.6
3.5
SAIL
Neutral
49
-
20,072
45,915
53,954
7.2
10.5
1.5
4.4
32.3
11.1
0.5
0.5
2.3
4.1
1.1
1.0
Vedanta
Neutral
170
-
50,326
71,445
81,910
26.2
26.3
12.9
19.2
13.2
8.9
0.9
0.8
7.2
8.9
1.2
0.9
Tata Steel
Neutral
368
-
35,707
126,760
137,307
8.9
11.3
6.4
23.1
57.8
15.9
1.2
1.1
2.0
7.1
0.9
0.8
Stock Watch
July 27, 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
Oil & Gas
Cairn India
Neutral
196
-
36,832
11,323
12,490
49.4
51.0
20.7
20.7
9.5
9.5
0.6
0.6
6.4
6.1
2.4
1.6
GAIL
Neutral
385
-
48,893
64,856
70,933
9.1
9.6
24.0
28.9
16.1
13.4
1.4
1.3
8.8
9.6
1.0
0.8
ONGC
Neutral
224
-
191,686
154,564
145,998
36.8
37.4
20.8
22.6
10.8
9.9
1.0
1.0
10.1
9.7
1.5
1.6
Petronet LNG
Neutral
296
-
22,226
29,691
31,188
5.8
6.2
12.8
13.4
23.2
22.1
3.5
3.1
15.8
14.8
0.8
0.8
Indian Oil Corp
Neutral
533
-
129,361
359,607
402,760
5.9
6.1
42.5
48.7
12.6
10.9
1.7
1.5
14.1
14.4
0.5
0.4
Reliance Industries
Neutral
1,023
-
331,799
304,775
344,392
12.6
13.4
91.3
102.6
11.2
10.0
1.3
1.1
11.8
12.0
1.0
0.8
Pharmaceuticals
Alembic Pharma
Neutral
594
-
11,192
3,145
3,483
31.9
16.2
38.2
18.7
15.5
31.8
7.0
5.9
57.9
20.1
3.4
3.2
Aurobindo Pharma
Accumulate
785
880
45,909
13,651
15,702
21.7
21.7
33.9
38.4
23.1
20.4
6.5
5.0
32.5
27.7
3.7
3.2
Aventis*
Neutral
4,580
-
10,549
2,049
2,375
15.4
17.3
115.4
153.5
39.7
29.8
6.5
5.1
19.3
25.8
4.9
4.1
Cadila Healthcare
Accumulate
375
400
38,390
9,469
11,246
21.2
22.0
14.9
17.1
25.2
21.9
7.2
5.6
28.8
26.6
4.0
3.3
Cipla
Neutral
523
-
42,031
13,372
15,378
16.4
17.4
18.8
21.6
27.8
24.2
3.5
3.1
13.3
13.7
3.2
3.0
Dr Reddy's
Neutral
3,323
-
56,668
15,471
17,479
24.6
24.6
138.2
152.4
24.0
21.8
4.4
3.8
19.7
18.7
3.8
3.3
Dishman Pharma
Neutral
149
-
2,403
1,733
1,906
21.5
21.5
10.1
10.0
14.7
14.9
1.7
1.6
10.5
11.2
1.8
1.6
GSK Pharma*
Neutral
3,387
-
28,691
2,741
3,528
16.5
18.9
44.2
60.1
76.6
56.4
16.9
16.8
21.2
29.9
10.1
7.9
Indoco Remedies
Neutral
316
-
2,912
977
1,112
14.9
18.2
9.0
13.2
35.1
23.9
5.0
4.3
15.1
19.2
3.1
2.7
Ipca labs
Buy
483
613
6,095
2,844
3,799
10.6
15.3
10.6
17.3
45.6
27.9
2.6
2.4
5.9
9.1
2.3
1.8
Lupin
Accumulate
1,700
1,809
76,636
13,702
15,912
23.7
26.4
50.5
58.1
33.7
29.3
7.0
5.7
22.9
21.4
6.1
4.9
Sun Pharma
Buy
800
944
192,439
27,744
31,129
26.0
30.0
22.0
28.0
36.4
28.6
5.3
4.4
18.3
18.7
6.8
5.9
Power
Tata Power
Neutral
71
-
19,298
35,923
37,402
22.6
22.8
4.1
5.2
17.6
13.9
1.4
1.3
7.5
9.3
1.5
1.4
NTPC
Neutral
158
-
130,278
87,271
99,297
23.5
23.5
11.8
13.3
13.5
11.9
1.5
1.4
11.5
12.2
2.5
2.2
Power Grid
Neutral
171
-
89,669
20,702
23,361
86.7
86.4
12.1
13.2
14.2
13.0
2.1
1.9
15.6
15.1
9.2
8.5
Real Estate
MLIFE
Buy
456
554
1,870
826
1,011
20.1
21.9
22.7
30.7
20.1
14.9
1.2
1.1
6.0
7.4
4.2
3.1
Telecom
Bharti Airtel
Neutral
370
-
147,744
101,748
109,191
32.1
31.7
12.0
12.5
30.8
29.6
2.1
2.0
6.9
6.7
2.1
1.9
Idea Cellular
Neutral
108
-
38,763
34,282
36,941
32.0
31.5
5.9
6.2
18.3
17.4
1.7
1.5
9.9
9.3
1.7
1.6
zOthers
Abbott India
Neutral
4,700
-
9,987
2,715
3,153
14.5
14.1
134.3
152.2
35.0
30.9
8.7
7.2
27.4
25.6
3.4
2.9
Bajaj Electricals
Accumulate
237
268
2,394
4,612
5,351
5.6
5.7
9.5
12.4
25.0
19.2
3.1
2.8
12.5
14.4
0.5
0.5
Finolex Cables
Neutral
394
-
6,030
2,520
2,883
12.2
12.0
12.7
14.2
31.1
27.8
4.2
3.8
13.6
13.5
2.1
1.8
Goodyear India*
Buy
527
631
1,215
1,750
1,598
11.3
10.4
53.7
49.4
9.8
10.7
2.1
1.8
23.0
18.2
0.5
0.4
Hitachi
Neutral
1,478
-
4,019
1,779
2,081
7.8
8.8
21.8
33.4
67.8
44.2
10.9
8.9
17.4
22.1
2.4
2.0
Stock Watch
July 27, 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
Jyothy Laboratories
Neutral
289
-
5,243
1,620
1,847
11.5
11.5
7.3
8.5
39.7
34.2
5.1
4.8
13.3
14.4
3.1
2.6
MRF
Buy
33,922
45,575
14,387
20,316
14,488
21.4
21.1
5,488.0
3,798.0
6.2
8.9
2.1
1.7
41.1
21.2
0.7
0.9
Page Industries
Neutral
13,321
-
14,858
1,929
2,450
19.8
20.1
229.9
299.0
57.9
44.6
25.6
17.8
52.1
47.1
7.9
6.2
Relaxo Footwears
Neutral
494
-
5,929
1,767
2,152
12.3
12.5
19.3
25.1
25.7
19.7
6.3
4.8
27.7
27.8
3.5
2.8
Siyaram Silk Mills
Buy
1,048
1,347
983
1,619
1,799
11.6
11.6
93.5
104.9
11.2
10.0
1.9
1.6
17.1
16.4
0.8
0.8
Styrolution ABS India* Neutral
630
-
1,107
1,271
1,440
8.6
9.2
32.0
41.1
19.7
15.3
2.0
1.8
10.7
12.4
0.8
0.7
TVS Srichakra
Buy
2,366
2,932
1,812
2,035
2,252
15.9
15.3
248.6
268.1
9.5
8.8
4.2
3.0
43.6
33.9
0.9
0.8
HSIL
Neutral
310
-
2,238
2,123
2,384
16.1
16.5
15.0
18.9
20.6
16.4
1.6
1.5
8.0
9.4
1.4
1.2
Kirloskar Engines India
Neutral
271
-
3,918
2,403
2,554
8.6
9.9
9.2
10.5
29.5
25.8
2.8
2.7
9.7
10.7
1.3
1.2
Ltd
M M Forgings
Buy
420
546
507
511
615
21.7
21.6
43.1
55.8
9.7
7.5
1.8
1.5
19.9
21.2
1.2
0.9
Banco Products (India) Neutral
171
-
1,224
1,208
1,353
11.0
12.3
10.8
14.5
15.9
11.8
1.8
1.6
11.9
14.5
1.0
0.9
Competent Automobiles Neutral
159
-
98
1,040
1,137
3.2
3.1
25.7
28.0
6.2
5.7
0.9
0.8
15.0
14.3
0.1
0.1
Nilkamal
Neutral
1,270
-
1,896
1,871
2,031
10.7
10.5
63.2
69.8
20.1
18.2
3.3
2.8
17.6
16.6
1.1
1.0
Visaka Industries
Neutral
150
-
239
1,020
1,120
8.7
9.1
13.9
20.1
10.8
7.5
0.7
0.7
6.4
8.7
0.5
0.4
Transport Corporation of
Neutral
348
-
2,666
2,830
3,350
8.8
9.0
14.4
18.3
24.2
19.0
3.7
3.3
15.4
17.1
1.1
0.9
India
Elecon Engineering
Neutral
62
-
676
1,359
1,482
10.3
13.7
0.8
3.9
77.3
16.0
1.3
1.2
1.6
7.8
0.9
0.8
Surya Roshni
Buy
167
201
732
2,992
3,223
8.1
8.4
14.7
18.3
11.4
9.1
1.1
1.0
9.7
11.0
0.5
0.5
MT Educare
Neutral
152
-
606
286
366
18.3
17.7
7.7
9.4
19.7
16.2
4.2
3.6
20.2
21.1
2.0
1.5
Radico Khaitan
Buy
92
125
1,223
1,543
1,659
12.6
13.0
5.8
6.3
15.9
14.5
1.4
1.3
8.5
8.6
1.3
1.2
Garware Wall Ropes
Accumulate
447
460
979
828
898
11.2
10.3
28.3
29.0
15.8
15.4
2.7
2.3
16.8
14.9
1.1
1.0
Wonderla Holidays
Neutral
410
-
2,319
206
308
44.0
43.6
9.0
12.9
45.6
31.8
6.2
5.7
13.7
17.8
11.2
7.5
Linc Pen & Plastics
Neutral
276
-
408
344
382
9.1
9.1
12.4
13.1
22.3
21.1
4.0
3.5
18.0
16.7
1.3
1.2
The Byke Hospitality
Neutral
163
-
654
222
287
20.5
20.5
5.6
7.6
29.0
21.6
5.5
4.5
18.9
20.8
3.0
2.3
Interglobe Aviation
Neutral
943
-
33,964
17,022
21,122
20.7
14.5
63.9
53.7
14.8
17.6
22.1
18.1
149.9
103.2
2.1
1.6
Coffee Day Enterprises
Neutral
245
-
5,051
2,692
2,964
17.0
18.6
-
4.7
-
51.7
3.0
2.8
0.2
5.5
2.3
2.2
Ltd
Navneet Education
Neutral
96
-
2,275
998
1,062
24.1
24.0
5.8
6.1
16.6
15.7
3.7
3.2
22.0
20.6
2.3
2.2
Navkar Corporation
Buy
208
265
2,961
347
408
43.2
42.9
6.7
6.8
31.1
30.7
2.3
2.1
7.3
6.9
9.2
8.4
UFO Moviez
Neutral
579
-
1,598
558
619
32.0
33.2
22.5
30.0
25.7
19.3
3.1
2.7
12.0
13.8
2.7
2.3
VRL Logistics
Neutral
352
-
3,208
1,725
1,902
16.5
16.7
12.2
14.6
28.9
24.1
6.0
5.3
20.8
21.9
2.1
1.9
Stock Watch
July 27, 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
Team Lease Serv.
Neutral
1,050
-
1,794
2,565
3,229
1.3
1.5
15.2
22.8
69.2
46.1
5.5
4.9
8.0
10.7
0.6
0.5
S H Kelkar & Co.
Neutral
242
-
3,498
928
1,036
15.3
15.1
4.9
6.1
49.0
39.6
4.6
4.2
9.4
10.7
3.7
3.2
Quick Heal
Neutral
264
-
1,845
339
408
27.8
27.3
7.1
7.7
37.3
34.0
3.2
3.2
8.5
9.3
4.5
3.8
Narayana Hrudaya
Neutral
289
-
5,908
1,603
1,873
10.9
11.5
1.0
2.6
303.5
109.3
7.3
6.7
2.4
6.1
3.8
3.3
Manpasand Bever.
Neutral
687
-
3,439
540
836
19.9
19.6
10.2
16.9
67.1
40.7
5.4
4.9
8.1
12.0
6.3
4.0
Parag Milk Foods
Neutral
323
-
2,715
1,645
1,919
9.0
9.3
6.7
9.5
48.0
34.2
6.3
5.3
13.1
15.5
1.9
1.6
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on July 26, 2016
Market Outlook
July 27, 2016
Research Team Tel: 022 - 39357800
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL
and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a
registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public
offering of securities of the company covered by Analyst during the past twelve months.
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