Market Outlook
September 04, 2017
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open negative tracking global indices and SGX Nifty.
BSE Sensex
0.5
162
31,892
US market moved higher for another session on Friday, in spite of weaker than
Nifty
0.6
56
9,974
expected economic data. Non-farm payroll employment increased by 156,000 in
August, against an expected increase of about 180,000 jobs. Steel stocks had a
Mid Cap
0.9
147
15,687
strong session with the NYSE Arca Steel Index closing up by 2.1 percent.
Small Cap
0.9
138
16,130
UK stocks closed up after IHS Markit PMI data showed that the manufacturing sector
Bankex
0.7
184
27,625
had expanded strongly in August. The PMI rose unexpectedly to a four-month high
of 56.9 in August from 55.3 in July. Shares of Rio Tinto moved up by 0.5 percent on
Global Indices
Chg (%)
(Pts)
(Close)
news that it had completed the sale of its wholly-owned subsidiary Coal & Allied
Industries Limited to Yancoal Australia Limited. Pharmaceuticals group Indivior sank
Dow Jones
0.2
139
21,988
35.77 percent after losing a U.S. patent ruling over its key product, Suboxone Film.
Nasdaq
0.1
57
6,435
Indian markets gained ground on Friday, in spite of weak GDP data. India’s GDP
FTSE
0.1
8
7,439
growth for the quarter of June was 5.7 percent, a three-year low. The auto index
Nikkei
(00.2
45
19,691
closed up 1.9 percent after Bajaj auto rallied 3.6 percent after reporting its August
sales data. The only sectoral index to close negative was the consumer durables
Hang Seng
(0.1)
(17)
27,953
index, which closed down 0.27 percent.
Shanghai Com
0.2
6
3,367
News Analysis
Advances / Declines
BSE
NSE
Dr. Reddy’s Laboratories, gets a favourable district court verdict for Suboxone
Advances
1,617
1,106
Detailed analysis is on Pg2
Declines
1,993
566
Investor’s Ready Reckoner
Unchanged
144
75
Key Domestic & Global Indicators
Volumes (` Cr)
Stock Watch: Latest investment recommendations on 150+ stocks
Refer Pg7 onwards
BSE
3,322
NSE
27,336
Top Picks
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
#Net Inflows (` Cr)
Net
Mtd
Ytd
Blue Star
Capital Goods
Accumulate
762
796
4.4
FII
(56444
((11,108)
4147,28
Dewan Housing FinanceFinancials
Accumulate
517
520
0.6
MFs
8566
417,222
1468,16
Mahindra Lifespace
Real Estate
Buy
453
522
15.3
Navkar Corporation
Others
Buy
197
265
34.5
KEI Industries
Capital Goods
Accumulate
265
290
9.5
Top Gainers
Price (`)
Chg (%)
More Top Picks on Pg5
Suntvcem
768
10.2
Key Upcoming Events
Drreddy
2,217
9.8
Previous
Consensus
Date
Region
Event Description
Centralbk
95
8.0
Reading
Expectations
Sep 05, 2017 Germany PMI Services
53.40
53.40
Bomdyeing
122
6.7
Sep 07, 2017 Euro Zone ECB announces interest rates
-
-
Relcapital
858
6.7
Sep 07, 2017 US
Initial Jobless claims
236.00
Sep 07, 2017 Euro Zone Euro-Zone GDP s.a. (QoQ)
0.60
0.60
Top Losers
Price (`)
Chg (%)
Sep 08, 2017 India
Imports YoY%
15.40
Religare
245
(9.9)
More Events on Pg7
Kansainer
492
(3.6)
Infibeam
143
(3.5)
Sci
97
(2.9)
Sreinfra
125
(2.4)
#as on 01th Sep, 2017
www.angelbroking.com
Market Outlook
September 04, 2017
News Analysis
Dr. Reddy’s Laboratories, gets a favourable district court verdict
for Suboxone
The District Court of Delaware has ruled in favour of Dr Reddy’s Laboratories Ltd.
against Reckitt Benckiser for the blockbuster drug Suboxone. Dr Reddy's bought
Suboxone Film’s abbreviated new drug application (ANDA) from Teva
Pharmaceuticals for US$70mn in June 2016 with seven generic filers. The key
patent expires in April 2024. Suboxone Film treats opioid addiction and has a
brand size of US$1.7bn in America, as per IMS Health data.
Assuming that 3-4 generics version of the drug hit the market, generic Suboxone
could add `15 to its EPS. However, this upside may take some time as the
innovator most likely will appeal the decision in a higher court and Dr. Reddy’s, on
the other hand, still needs to get an approval from the U.S. Food and Drug
Administration. We maintain our Accumulate with a price target of `2,219.
Economic and Political News
Government waives penalty of `200 per day for taxpayers who fail to file GST
returns within deadline
Credit growth of banks slowed to 8.1% from 10.9% in 2016-17: Report
Govt imports 2,400 tonnes of onion from Egypt due to price rise concerns
Govt raises LPG prices by `7 per cylinder; ATF increased by 4% to `50,020
Corporate News
Steel ministry unveils turnaround scheme to drive SAIL towards profitability
JSW Steel to spend `8000 cr per year for capex until 2020; to spend
`26,800cr on capex over period of 3 years
Tata Motors' CV sales up 24% YoY in Jul-Aug
Vedanta to spend `50,000cr to expand India business
www.angelbroking.com
Market Outlook
September 04, 2017
Top Picks
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
Strong growth in domestic business due to its leadership
in acute therapeutic segment. Alkem expects to launch
Alkem Laboratories
21,428
1,792
2,161
20.6
more products in USA, which bodes for its international
business.
We expect the company would report strong profitability
Asian Granito
1,396
464
487
5.0
owing to better product mix, higher B2C sales and
amalgamation synergy.
Favorable outlook for the AC industry to augur well for
Cooling products business which is out pacing the
Blue Star
7,301
762
796
4.4
market growth. EMPPAC division's profitability to improve
once operating environment turns around.
With a focus on the low and medium income (LMI)
consumer segment, the company has increased its
Dewan Housing Finance
16,209
517
520
0.6
presence in tier-II & III cities where the growth
opportunity is immense.
Loan growth is likely to pick up after a sluggish FY17.
Karur Vysya Bank
8,886
147
160
8.8
Lower credit cost will help in strong bottom-line growth.
Increasing share of CASA will help in NIM improvement.
High order book execution in EPC segment, rising B2C
KEI Industries
2,060
265
290
9.5
sales and higher exports to boost the revenues and
profitability
Speedier execution and speedier sales, strong revenue
Mahindra Lifespace
2,324
453
522
15.3
visibility in short-to-long run, attractive valuations
Expected to benefit from the lower capex requirement
Music Broadcast
2,117
371
434
17.0
and 15 year long radio broadcast licensing.
Massive capacity expansion along with rail advantage at
Navkar Corporation
2,809
197
265
34.5
ICD as well CFS augurs well for the company
Strong brands and distribution network would boost
Siyaram Silk Mills
2,097
2,237
2,500
11.8
growth going ahead. Stock currently trades at an
inexpensive valuation.
Market leadership in Hindi news genre and no.
2
viewership ranking in English news genre, exit from the
TV Today Network
1,526
256
344
34.5
radio business, and anticipated growth in ad spends by
corporates to benefit the stock.
After GST, the company is expected to see higher
volumes along with improving product mix. The Gujarat
Maruti Suzuki
2,36,006
7,813
8,544
9.4
plant will also enable higher operating leverage which
will be margin accretive.
Source: Company, Angel Research
www.angelbroking.com
Market Outlook
September 04, 2017
Key Upcoming Events
Global economic events release calendar
Bloomberg Data
Date
Time
Country
Event Description
Unit
Period
Last Reported
Estimated
1:25 PMGermany PMI Services
Value
Aug F
53.40
53.40
Sep 05, 2017
Sep 07, 2017
5:15 PMEuro Zone ECB announces interest rates
%
Sep 7
-
-
6:00 PMUS
Initial Jobless claims
Thousands
Sep 2
236.00
2:30 PMEuro Zone Euro-Zone GDP s.a. (QoQ)
% Change
2Q F
0.60
0.60
Sep 08, 2017
India
Imports YoY%
% Change
Aug
15.40
India
Exports YoY%
% Change
Aug
3.94
2:00 PMUK
Industrial Production (YoY)
% Change
Jul
0.30
0.30
China
Exports YoY%
% Change
Aug
7.20
5.10
Sep 09, 2017
7:00 AMChina
Consumer Price Index (YoY)
% Change
Aug
1.40
1.60
Sep 12, 2017
2:00 PMUK
CPI (YoY)
% Change
Aug
2.60
5:30 PMIndia
Industrial Production YoY
% Change
Jul
(0.10)
Sep 13, 2017
2:00 PMUK
Jobless claims change
% Change
Aug
(4.20)
US
Producer Price Index (mom)
% Change
Aug
(0.20)
Sep 14, 2017
12:00 PMIndia
Monthly Wholesale Prices YoY%
% Change
Aug
1.88
7:30 AMChina
Industrial Production (YoY)
% Change
Aug
6.40
6:00 PMUS
Consumer price index (mom)
% Change
Aug
0.10
0.30
4:30 PMUK
BOE Announces rates
% Ratio
Sep 14
0.25
Sep 15, 2017
6:45 PMUS
Industrial Production
%
Aug
0.19
0.20
Sep 18, 2017
2:30 PMEuro Zone Euro-Zone CPI (YoY)
%
Aug F
1.50
Sep 19, 2017
6:00 PMUS
Housing Starts
Thousands
Aug
1,155.00
6:00 PMUS
Building permits
Thousands
Aug
1,230.00
Sep 20, 2017
7:30 PMUS
Existing home sales
Million
Aug
5.44
11:30 PMUS
FOMC rate decision
%
Sep 20
1.25
1.25
Sep 21, 2017
7:30 PMUS
Consumer Confidence
S.A./ 1985=100 Sep
122.90
7:30 PMUS
New home sales
Thousands
Aug
571.00
Sep 26, 2017
6:00 PMUS
GDP Qoq (Annualised)
% Change
2Q T
3.00
Source: Bloomberg, Angel Research
www.angelbroking.com
Market Outlook
September 04, 2017
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
5.7
5.7
10.0
6.0
9.1
8.8
4.9
4.9
9.0
5.0
8.0
7.9
7.6
7.5
3.8
8.0
7.3
7.2
4.0
7.0
3.0
2.6
2.8
2.8
7.0
6.1
6.1
3.0
5.7
1.9
6.0
2.0
5.0
1.0
4.0
-
3.0
(0.1)
(1.0)
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
(%)
6.0
54.0
5.1
52.0
5.0
4.3
4.2
3.9
50.0
3.6
3.7
4.0
3.4
3.2
3.0
48.0
3.0
2.4
2.2
46.0
2.0
1.5
44.0
1.0
42.0
40.0
-
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
60.0
6.50
50.0
6.00
40.0
5.50
30.0
5.00
20.0
4.50
10.0
4.00
0.0
(10.0)
3.50
(20.0)
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
www.angelbroking.com
Market Outlook
September 04, 2017
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
6.9
7.0
5.8
6.0
5.3
5.0
5.0
1.0
3.7
4.0
2.5
3.0
2.2
1.7
1.7
2.0
2.0
0.8
1.0
0.3
-
Source: Bloomberg, Angel Research
Exhibit 2: 2017 GDP Growth projection by IMF (%, yoy) across select developing and developed countries
(%)
7.2
6.6
7.0
6.0
5.1
5.0
4.5
4.0
3.0
3.0
2.3
2.0
1.4
1.6
2.0
1.4
1.2
0.2
0.8
1.0
-
Source: IMF, Angel Research
Exhibit 3: One year forward P-E ratio across select developing and developed countries
(x)
25.0
20.0
15.0
10.0
5.0
-
Source: IMF, Angel Research
www.angelbroking.com
Market Outlook
September 04, 2017
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
71,923
7.1
15.1
22.8
Russia
Micex
2,011
2.3
6.9
(0.3)
India
Nifty
9,974
(1.0)
3.7
16.4
China
Shanghai Composite
3,367
3.1
8.8
9.2
South Africa
Top 40
49,996
2.0
7.5
8.1
Mexico
Mexbol
51,081
(0.2)
3.0
6.9
Indonesia
LQ45
977
0.8
1.6
3.4
Malaysia
KLCI
1,773
0.7
0.5
5.4
Thailand
SET 50
1,034
3.1
4.8
4.7
USA
Dow Jones
21,988
(0.1)
3.7
18.9
UK
FTSE
7,439
(0.0)
(2.1)
9.2
Japan
Nikkei
19,691
(2.3)
(0.9)
18.2
Germany
DAX
12,143
(0.3)
(5.3)
12.9
France
CAC
5,123
0.3
(3.5)
14.1
Source: Bloomberg, Angel Research
www.angelbroking.com
Stock Watch
September 04, 2017
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 )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Agri / Agri Chemical
Rallis
Reduce
227
209
4,413
1,873
2,099
15.0
15.0
9.5
10.5
23.9
21.6
3.6
3.3
15.8
16.0
2.3
2.0
United Phosphorus
Neutral
834
-
42,352
18,922
21,949
18.0
18.5
36.2
45.6
23.0
18.3
4.8
4.0
22.7
23.8
2.4
2.0
Auto & Auto Ancillary
Ashok Leyland
Accumulate
113
127
33,026
23,339
27,240
10.1
10.8
4.7
6.2
24.3
18.2
4.9
4.3
20.0
23.6
1.4
1.2
Bajaj Auto
Accumulate
2,919
3,151
84,456
23,936
27,955
19.5
20.1
142.7
167.3
20.5
17.4
4.5
4.0
21.8
22.8
3.1
2.6
Bharat Forge
Neutral
1,134
-
26,398
7,637
8,755
21.7
23.2
36.1
47.3
31.4
24.0
5.6
4.8
18.5
20.8
3.3
2.8
Eicher Motors
Neutral
31,714
-
86,331
19,043
22,837
19.5
19.9
835.4
1,019.0
38.0
31.1
14.2
10.9
40.9
37.8
4.4
3.6
Gabriel India
Neutral
175
-
2,518
1,782
2,033
9.7
10.2
7.1
8.9
24.7
19.8
5.0
4.2
21.0
22.2
1.4
1.2
Hero Motocorp
Neutral
4,047
-
80,823
32,239
36,878
16.0
15.6
184.4
206.5
22.0
19.6
6.9
6.0
31.3
30.7
2.3
2.0
Jamna Auto Industries Neutral
255
-
2,029
1,441
1,662
14.4
14.8
13.9
17.6
18.3
14.5
5.0
4.1
30.0
31.0
1.4
1.2
Mahindra and Mahindra Neutral
1,349
-
83,773
46,971
53,816
13.6
14.0
67.7
79.8
19.9
16.9
2.8
2.5
15.0
15.9
1.7
1.4
Maruti
Accumulate
7,813
8,544
236,006
81,825
101,245
15.0
15.0
283.5
356.0
27.6
21.9
6.0
4.9
21.9
22.4
2.6
2.0
Minda Industries
Neutral
878
-
7,584
4,328
5,084
11.0
11.9
27.3
36.4
32.2
24.1
6.8
5.3
23.1
25.6
1.8
1.6
Motherson Sumi
Neutral
320
-
67,292
55,937
64,445
10.8
11.4
16.9
21.1
18.9
15.2
4.2
4.3
25.2
25.4
1.3
1.1
Tata Motors
Neutral
391
-
112,809
303,167
343,649
11.8
13.8
33.1
54.7
11.8
7.1
1.9
1.6
16.9
23.0
0.4
0.3
TVS Motor
Neutral
609
-
28,911
13,992
16,216
9.0
9.4
17.1
20.3
35.7
30.0
9.5
7.3
29.7
27.7
2.0
1.7
Amara Raja Batteries
Accumulate
799
858
13,645
6,140
7,122
14.3
15.6
29.3
39.0
27.3
20.5
4.7
3.9
17.1
19.0
2.2
1.9
Exide Industries
Neutral
204
-
17,353
8,689
9,854
15.1
15.2
9.7
11.0
21.2
18.6
3.8
3.3
15.7
16.1
1.7
1.5
Apollo Tyres
Neutral
256
-
13,041
15,739
17,326
13.3
14.6
20.4
26.7
12.6
9.6
1.5
1.3
20.4
26.7
1.1
1.0
Ceat
Neutral
1,732
-
7,005
6,661
7,717
11.1
14.2
116.2
178.2
14.9
9.7
2.6
2.2
15.2
21.3
1.2
1.0
JK Tyres
Neutral
148
-
3,366
8,318
9,239
16.2
16.4
21.0
27.5
7.1
5.4
1.4
1.1
19.1
20.4
0.9
0.7
Swaraj Engines
Neutral
2,115
-
2,627
788
889
16.4
16.5
71.6
81.0
29.5
26.1
8.5
7.9
29.6
31.0
3.0
2.6
Subros
Neutral
238
-
1,425
1,855
2,135
11.6
11.8
10.3
14.7
23.2
16.2
3.5
3.0
15.8
19.1
1.0
0.8
Capital Goods
BEML
Neutral
1,848
-
7,695
4,286
5,194
7.1
8.2
42.9
58.1
43.1
31.8
3.5
3.2
7.6
8.7
1.9
1.5
Bharat Electronics
Neutral
194
-
43,321
10,258
12,470
19.6
19.5
7.3
8.6
26.6
22.6
0.5
0.5
20.4
21.9
3.7
3.0
Voltas
Neutral
526
-
17,411
6,778
8,004
9.6
11.0
17.1
22.4
30.8
23.5
7.3
6.4
17.7
19.8
2.3
1.9
BHEL
Neutral
130
-
31,831
33,200
39,167
6.8
9.5
6.2
11.2
21.0
11.6
1.0
0.9
4.6
8.0
0.5
0.4
Blue Star
Neutral
762
-
7,301
5,101
5,997
6.0
7.0
17.9
26.6
42.6
28.7
9.1
8.3
21.9
29.0
1.4
1.2
CG Power and Industrial
Neutral
82
-
5,127
6,555
7,292
7.5
7.5
-
0.8
8,180.0
102.3
1.3
1.3
0.1
1.2
0.9
0.8
Solutions
Greaves Cotton
Neutral
155
-
3,777
1,778
1,993
14.7
15.1
8.1
9.1
19.1
17.0
4.3
4.0
21.8
23.6
1.9
1.7
www.angelbroking.com
Stock Watch
September 04, 2017
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 )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Capital Goods
KEC International
Neutral
310
-
7,971
9,779
11,113
9.4
9.8
14.2
18.2
21.8
17.0
4.2
3.4
21.1
22.1
1.1
0.9
KEI Industries
Accumulate
265
290
2,060
3,001
3,391
10.0
10.0
13.0
16.1
20.4
16.4
3.7
3.1
18.2
18.7
0.9
0.8
Thermax
Neutral
883
-
10,521
4,125
4,747
10.3
10.8
26.7
31.5
33.1
28.0
3.7
3.4
11.2
12.0
2.3
2.0
VATech Wabag
Accumulate
612
681
3,339
3,867
4,126
9.6
10.0
34.9
39.8
17.5
15.4
2.9
2.5
17.7
17.5
0.9
0.8
Cement
ACC
Neutral
1,816
-
34,106
12,255
13,350
13.5
14.3
58.0
66.2
31.3
27.4
3.7
3.5
11.5
12.2
2.8
2.5
Ambuja Cements
Neutral
282
-
56,055
10,250
11,450
17.5
19.0
7.2
8.3
39.2
34.0
2.8
2.7
7.0
7.8
5.2
4.6
India Cements
Neutral
181
-
5,584
6,135
6,750
14.8
15.2
8.5
11.5
21.3
15.8
1.1
1.0
4.8
6.2
1.3
1.1
JK Cement
Neutral
1,010
-
7,064
4,150
4,775
19.2
20.0
49.0
63.5
20.6
15.9
3.3
2.8
17.0
18.5
2.1
1.8
J K Lakshmi Cement
Neutral
441
-
5,184
3,422
3,757
15.5
17.0
13.5
23.2
32.6
19.0
3.4
2.9
10.8
15.5
1.9
1.7
Orient Cement
Neutral
154
-
3,145
2,215
3,233
16.8
17.0
5.9
6.9
26.0
22.3
2.0
1.8
10.8
10.1
2.4
1.6
UltraTech Cement
Neutral
4,010
-
110,098
28,250
35,150
20.2
23.5
77.5
122.2
51.8
32.8
4.4
4.0
9.6
14.8
4.4
3.5
Construction
KNR Constructions
Neutral
215
-
3,023
1,846
2,203
14.5
14.5
12.1
13.7
17.8
15.8
1.0
0.8
17.5
16.7
1.7
1.4
Larsen & Toubro
Neutral
1,140
-
159,620
95,787
109,476
10.2
11.6
44.5
50.8
25.6
22.5
3.2
3.0
12.9
13.1
2.2
2.0
Gujarat Pipavav Port
Neutral
129
-
6,256
739
842
61.6
62.7
5.1
6.2
25.4
21.0
3.2
3.1
12.7
14.9
7.9
6.8
PNC Infratech
Neutral
138
-
3,533
2,040
2,935
13.0
13.0
6.4
9.0
21.5
15.3
0.6
0.5
9.7
12.2
1.7
1.3
Simplex Infra
Neutral
480
-
2,376
6,012
6,619
11.6
11.7
21.1
31.0
22.8
15.5
1.6
1.5
6.5
8.6
0.9
0.8
Sadbhav Engineering
Neutral
287
-
4,918
3,823
4,426
10.7
10.8
10.3
11.8
27.8
24.3
3.3
2.9
10.1
10.5
1.6
1.4
NBCC
Neutral
209
-
18,779
9,099
12,706
6.4
6.4
7.3
9.6
28.7
21.8
1.3
1.0
27.5
30.5
1.9
1.4
MEP Infra
Neutral
114
-
1,850
2,403
2,910
18.3
16.8
2.4
6.1
48.4
18.7
18.4
12.4
35.2
55.8
1.9
1.6
SIPL
Neutral
102
-
3,582
2,060
2,390
46.8
47.7
(5.8)
(3.1)
3.8
4.4
(14.2)
(2.3)
6.5
6.1
Engineers India
Neutral
156
-
10,543
1,795
2,611
21.1
22.4
5.9
8.1
26.5
19.3
1.9
1.8
12.9
16.1
4.3
2.8
Financials
Axis Bank
Accumulate
508
580
121,703
32,558
35,843
3.5
3.2
27.8
41.0
18.3
12.4
2.0
1.7
11.4
14.9
-
-
Bank of Baroda
Neutral
138
-
31,867
22,533
26,079
2.4
2.4
12.0
20.9
11.5
6.6
0.8
0.7
6.6
11.0
-
-
Canara Bank
Neutral
341
-
20,338
17,925
20,235
2.0
2.1
18.5
36.5
18.4
9.3
0.7
0.7
3.4
6.2
-
-
Can Fin Homes
Neutral
2,872
-
7,646
586
741
3.5
3.5
107.8
141.0
26.6
20.4
5.9
4.7
24.1
25.6
-
-
Cholamandalam Inv. &
Accumulate
1,150
1,230
17,974
2,826
3,307
6.3
6.3
53.7
64.6
21.4
17.8
3.7
3.1
18.3
18.9
-
-
Fin. Co.
Dewan Housing Finance Neutral
517
-
16,209
2,676
3,383
2.4
2.7
37.4
49.7
13.8
10.4
1.8
1.6
13.8
16.2
-
-
Equitas Holdings
Buy
173
235
5,853
1,125
1,380
9.6
9.8
1.5
6.0
115.2
28.8
2.6
2.4
2.4
8.2
-
-
Federal Bank
Accumulate
110
125
21,420
4,896
5,930
2.8
3.1
5.4
7.6
20.5
14.6
1.7
1.6
8.5
11.0
-
-
www.angelbroking.com
Stock Watch
September 04, 2017
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 )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Financials
HDFC Bank
Neutral
1,768
-
455,388
55,236
63,253
4.5
4.4
68.9
82.4
25.7
21.5
4.5
3.7
18.7
18.5
-
-
ICICI Bank
Accumulate
298
315
191,282
42,361
51,378
3.6
3.9
18.4
25.7
16.2
11.6
1.8
1.7
11.3
15.0
-
-
Karur Vysya Bank
Accumulate
147
160
8,886
3,289
3,630
3.7
3.9
10.8
14.1
13.6
10.5
1.6
1.5
12.5
14.7
-
-
LIC Housing Finance
Neutral
681
-
34,378
4,895
6,332
3.4
3.7
50.7
66.8
13.4
10.2
2.7
2.2
21.7
23.8
-
-
Punjab Natl.Bank
Neutral
144
-
30,717
23,708
25,758
2.1
2.1
5.9
16.4
24.6
8.8
0.7
0.7
3.0
8.3
-
-
RBL Bank
Neutral
536
-
20,336
2,309
2,888
2.6
2.5
16.4
19.1
32.8
28.1
4.1
3.7
13.3
13.8
-
-
Repco Home Finance
Buy
647
825
4,047
496
597
4.4
4.2
38.5
48.7
16.8
13.3
3.0
2.5
19.6
20.6
-
-
South Ind.Bank
Neutral
29
-
5,269
3,195
3,567
3.0
3.1
3.0
3.8
9.7
7.6
1.0
0.9
10.5
11.9
-
-
St Bk of India
Neutral
278
-
239,712
105,827
121,056
2.4
2.5
16.1
25.6
17.3
10.9
1.4
1.2
6.6
9.9
-
-
Union Bank
Neutral
139
-
9,528
14,650
16,225
2.3
2.3
23.1
32.5
6.0
4.3
0.5
0.4
7.1
9.2
-
-
Yes Bank
Neutral
1,776
-
81,264
11,088
13,138
3.0
2.9
84.0
99.3
21.1
17.9
3.2
2.8
16.3
16.8
-
-
FMCG
Akzo Nobel India
Neutral
1,856
-
8,899
3,164
3,607
13.8
13.7
58.6
67.9
31.7
27.3
7.8
6.9
24.5
25.1
2.7
2.3
Asian Paints
Neutral
1,215
-
116,499
17,603
20,615
18.6
18.6
2,128.9
2,543.3
0.6
0.5
12.0
10.1
28.0
28.9
6.4
5.4
Britannia
Neutral
4,240
-
50,910
9,690
11,278
14.8
15.4
84.0
101.0
50.5
42.0
18.4
14.6
40.6
39.0
5.2
4.5
Colgate
Neutral
1,125
-
30,586
4,420
5,074
24.9
25.3
28.6
32.8
39.3
34.3
15.5
12.5
43.8
40.5
6.7
5.8
Dabur India
Neutral
313
-
55,206
8,346
9,344
19.6
19.9
7.8
9.0
40.2
34.8
8.1
7.3
25.2
24.8
6.2
5.5
GlaxoSmith Con*
Neutral
5,308
-
22,325
5,072
5,760
18.2
18.4
176.3
199.2
30.1
26.7
6.4
5.8
21.2
21.7
3.7
3.2
Godrej Consumer
Neutral
932
-
63,524
10,171
11,682
20.8
21.5
21.7
27.1
43.0
34.4
9.7
8.3
22.3
23.4
6.4
5.5
HUL
Neutral
1,216
-
263,134
37,077
41,508
20.3
21.8
5,189.9
6,318.5
0.2
0.2
37.1
31.7
74.8
82.0
6.9
6.2
ITC
Neutral
284
-
345,312
44,588
49,853
37.0
37.3
9.6
11.0
29.5
25.8
7.3
6.9
25.1
27.3
7.2
6.4
Marico
Neutral
314
-
40,476
6,788
7,766
18.5
19.2
7.1
8.5
44.2
36.9
15.5
13.2
36.9
38.0
5.8
5.1
Nestle*
Neutral
7,022
-
67,704
10,083
11,182
20.0
20.9
119.7
141.3
58.7
49.7
206.8
189.0
36.7
39.8
6.4
5.7
Tata Global
Neutral
198
-
12,471
7,121
7,641
11.9
12.3
6.9
8.0
28.6
24.7
1.9
1.8
6.8
7.2
1.6
1.4
Procter & Gamble
Neutral
8,315
-
26,990
3,034
3,579
27.1
27.7
167.7
198.8
49.6
41.8
13.3
11.5
28.8
29.5
8.3
7.0
Hygiene
IT
HCL Tech^
Buy
865
1,014
123,463
52,342
57,053
20.9
20.9
62.8
67.6
13.8
12.8
3.1
2.6
22.4
20.6
2.0
1.8
Infosys
Buy
920
1,179
211,344
73,963
80,619
26.0
26.0
64.4
69.3
14.3
13.3
2.8
2.6
19.7
19.6
2.3
2.0
TCS
Accumulate
2,463
2,651
485,356
127,403
138,870
27.6
27.6
144.5
156.0
17.1
15.8
5.1
4.7
29.7
29.8
3.5
3.1
Tech Mahindra
Buy
424
533
41,395
31,015
33,496
15.0
15.0
35.6
38.1
11.9
11.1
2.0
1.9
17.0
16.3
1.1
1.0
Wipro
Neutral
297
-
144,437
58,536
61,858
20.3
20.3
18.2
19.1
16.3
15.5
2.5
2.2
14.6
13.4
2.4
2.3
www.angelbroking.com
Stock Watch
September 04, 2017
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 )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Media
D B Corp
Neutral
366
-
6,737
2,404
2,625
30.5
31.5
23.7
26.9
15.5
13.6
3.6
3.1
23.5
22.8
2.6
2.4
HT Media
Neutral
99
-
2,315
2,589
2,830
15.1
15.4
8.3
10.9
12.0
9.1
1.0
0.9
8.4
10.4
0.4
0.3
Jagran Prakashan
Buy
180
225
5,880
2,541
2,835
28.5
28.7
12.7
14.1
14.2
12.8
2.9
2.5
21.3
21.4
2.2
1.9
Sun TV Network
Neutral
768
-
30,264
3,238
3,789
51.9
55.1
30.9
38.0
24.9
20.2
7.1
6.2
30.0
31.0
8.9
7.5
Hindustan Media
Neutral
269
-
1,974
1,002
1,074
23.3
23.5
29.2
33.8
9.2
8.0
1.4
1.2
15.6
15.4
1.0
0.7
Ventures
TV Today Network
Buy
256
344
1,526
667
727
27.7
27.7
18.6
20.1
13.8
12.8
2.1
2.2
15.6
17.3
1.8
1.7
Music Broadcast Limited Buy
371
434
2,117
271
317
91.0
109.0
6.0
10.0
61.8
37.1
3.9
3.5
6.5
9.3
7.4
6.1
Metals & Mining
Coal India
Neutral
238
-
147,954
82,301
91,235
17.0
18.0
17.1
20.5
13.9
11.6
2.6
2.5
45.0
55.0
1.5
1.3
Hind. Zinc
Neutral
302
-
127,668
22,108
24,555
57.0
58.0
22.1
26.3
13.7
11.5
4.4
3.6
32.0
35.0
4.8
4.0
Hindalco
Neutral
243
-
54,607
102,350
105,355
13.5
14.5
21.5
24.5
11.3
9.9
1.6
1.3
15.0
15.2
1.1
1.1
JSW Steel
Neutral
257
-
62,147
64,500
68,245
21.1
21.5
20.1
21.2
12.8
12.1
2.3
2.0
-
-
1.7
1.6
NMDC
Neutral
132
-
41,874
10,209
11,450
47.0
48.0
11.1
12.1
11.9
10.9
1.7
1.6
-
-
3.6
3.3
SAIL
Neutral
63
-
25,813
54,100
63,555
3.0
10.0
(10.0)
1.5
41.7
0.8
0.8
-
-
1.5
1.3
Vedanta
Neutral
315
-
117,073
81,206
87,345
28.0
29.0
26.5
33.5
11.9
9.4
2.7
2.3
-
-
2.2
1.9
Tata Steel
Neutral
650
-
63,119
121,445
126,500
16.2
17.2
65.4
81.3
9.9
8.0
1.6
1.4
-
-
1.0
0.9
Oil & Gas
GAIL
Neutral
384
-
64,954
53,115
52,344
14.2
15.3
30.0
31.1
12.8
12.4
1.6
1.5
-
-
0.9
0.9
ONGC
Neutral
160
-
205,204
83,111
84,934
44.2
44.9
16.4
16.9
9.8
9.5
1.2
1.1
-
-
2.3
2.3
Indian Oil Corp
Neutral
448
-
217,690
396,116
432,560
8.5
8.8
40.1
42.2
11.2
10.6
1.9
1.7
-
-
0.7
0.6
Reliance Industries
Neutral
1,609
-
523,345
257,711
267,438
17.0
18.2
89.1
89.5
18.1
18.0
1.7
1.6
-
-
1.7
1.6
Pharmaceuticals
Alembic Pharma
Buy
518
600
9,758
3,903
4,584
18.2
19.2
21.8
27.2
23.7
19.0
4.3
3.6
19.8
20.6
2.5
2.1
Alkem Laboratories Ltd
Buy
1,792
2,161
21,428
6,901
7,850
18.4
19.1
85.0
100.5
21.1
17.8
4.3
3.6
20.2
20.1
3.1
2.7
Aurobindo Pharma
Accumulate
758
823
44,413
17,086
19,478
22.1
22.0
44.7
51.4
17.0
14.8
3.8
3.0
24.7
22.7
2.7
2.4
Aventis*
Neutral
4,078
-
9,391
2,508
2,862
16.8
16.8
139.9
153.8
29.2
26.5
4.2
3.4
23.5
25.8
3.4
2.8
Cadila Healthcare
Sell
508
426
51,975
11,584
13,228
20.3
20.4
18.7
21.3
27.2
23.8
6.1
5.0
24.6
22.9
4.3
3.7
Cipla
Sell
569
458
45,754
16,619
19,437
15.4
16.2
19.7
24.3
28.9
23.4
3.3
2.9
12.0
13.2
2.9
2.5
Dr Reddy's
Neutral
2,217
-
36,754
15,844
17,973
17.6
18.2
91.7
111.0
24.2
20.0
2.8
2.5
11.9
13.0
2.5
2.3
GSK Pharma*
Neutral
2,425
-
20,538
3,260
3,651
15.0
18.0
46.1
58.6
52.6
41.4
10.8
11.1
20.0
26.5
6.2
5.6
Indoco Remedies
Sell
192
153
1,767
1,154
1,310
14.9
14.9
11.3
12.7
17.0
15.1
2.4
2.1
15.0
15.0
1.7
1.4
Ipca labs
Buy
418
540
5,271
3,593
4,022
14.5
15.5
19.4
25.2
21.5
16.6
2.0
1.8
9.5
11.2
1.5
1.4
www.angelbroking.com
Stock Watch
September 04, 2017
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 )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Pharmaceuticals
Lupin
Buy
994
1,467
44,881
18,657
21,289
21.3
23.3
52.8
66.7
18.8
14.9
2.8
2.4
16.3
17.5
2.4
2.0
Natco Pharma
Accumulate
717
796
12,499
1,836
1,946
31.8
28.9
22.1
20.6
32.4
34.8
6.5
5.8
20.1
16.7
6.7
6.3
Sun Pharma
Accumulate
487
558
116,831
32,899
36,451
26.9
25.4
31.6
32.3
15.4
15.1
2.7
2.4
18.7
18.8
3.2
2.7
Syngene International
Buy
447
557
8,939
1,402
1,823
32.8
36.0
15.9
20.7
28.2
21.6
5.3
4.3
18.7
20.0
6.3
4.9
Power
Tata Power
Neutral
80
-
21,665
32,547
33,806
20.5
20.5
4.7
5.4
17.0
15.0
1.6
1.4
10.5
10.5
1.7
1.6
NTPC
Neutral
168
-
138,647
86,070
101,246
28.3
30.7
12.9
16.2
13.0
10.4
1.3
1.2
10.6
12.4
3.0
2.7
Power Grid
Neutral
217
-
113,316
29,183
32,946
89.7
90.0
18.0
20.8
12.1
10.4
2.0
1.8
17.7
18.2
7.8
7.2
Real Estate
Prestige Estate
Neutral
270
-
10,125
4,607
5,146
21.0
22.2
7.9
9.8
34.2
27.6
2.1
2.0
10.3
12.0
3.4
3.1
MLIFE
Buy
453
522
2,324
487
590
12.3
17.8
21.0
31.2
21.6
14.5
1.1
1.1
5.2
7.4
3.5
2.8
Telecom
Bharti Airtel
Neutral
422
-
168,870
97,903
105,233
36.0
36.3
9.3
11.1
45.4
38.2
2.2
2.1
5.0
5.6
2.7
2.4
Idea Cellular
Neutral
89
-
32,063
35,012
37,689
27.1
27.7
(4.4)
(2.7)
1.4
1.4
(6.8)
(4.6)
2.2
2.0
zOthers
Abbott India
Neutral
4,171
-
8,863
3,244
3,723
14.9
16.1
167.5
209.4
24.9
19.9
5.5
4.6
23.7
24.8
2.4
2.0
Asian Granito
Neutral
464
-
1,396
1,169
1,286
12.5
12.5
16.0
19.7
29.0
23.5
3.1
2.7
10.7
11.6
1.4
1.3
Bajaj Electricals
Buy
343
395
3,473
4,646
5,301
6.7
7.6
16.1
22.3
21.3
15.4
3.5
3.0
16.4
19.2
0.7
0.7
Banco Products (India)
Neutral
216
-
1,542
1,530
1,695
13.2
12.7
19.0
20.0
11.4
10.8
1.8
1.6
0.2
0.2
0.9
101.9
Coffee Day Enterprises
Neutral
241
-
4,970
3,494
3,913
17.4
18.0
4.8
5.7
-
42.3
2.1
2.0
-
0.1
1.9
1.7
Ltd
Elecon Engineering
Neutral
49
-
549
171
201
15.0
16.2
36.0
43.0
1.4
1.1
0.1
0.1
0.1
0.1
2.6
2.2
Garware Wall Ropes
Neutral
921
-
2,016
928
1,003
15.2
15.2
39.4
43.2
23.4
21.3
3.9
3.3
16.5
15.4
2.0
1.8
Goodyear India*
Neutral
837
-
1,930
1,717
1,866
11.8
12.3
47.9
49.8
17.5
16.8
2.7
2.3
15.6
15.7
0.8
117.3
Hitachi
Neutral
1,963
-
5,337
2,355
2,715
10.3
10.8
49.0
60.9
40.1
32.2
9.4
7.4
0.2
0.2
2.3
2.0
HSIL
Neutral
385
-
2,782
2,240
2,670
14.6
15.0
17.0
22.0
22.6
17.5
1.9
1.8
0.1
0.1
1.5
1.2
Interglobe Aviation
Neutral
1,255
-
45,399
22,570
27,955
14.2
15.0
63.6
81.8
19.8
15.4
10.4
8.8
0.5
0.6
1.7
1.3
Jyothy Laboratories
Neutral
390
-
7,077
1,781
2,044
14.1
15.0
9.4
10.5
41.7
37.1
8.9
8.3
0.2
0.2
4.2
3.6
Linc Pen & Plastics
Neutral
241
-
356
420
462
9.3
9.3
15.3
17.1
15.7
14.1
2.7
2.8
16.9
19.5
0.9
0.8
M M Forgings
Neutral
609
-
735
542
642
20.1
21.0
41.6
56.8
14.6
10.7
2.0
1.7
0.1
0.2
1.8
1.6
Mirza International
Neutral
160
-
1,925
1,148
1,285
18.0
18.0
8.0
9.4
19.9
17.1
3.3
2.8
16.3
16.1
1.8
1.6
Navkar Corporation
Buy
197
265
2,809
561
617
41.5
41.5
11.5
12.7
17.1
15.5
1.8
1.6
10.5
10.4
5.7
4.9
Nilkamal
Neutral
1,568
-
2,340
2,317
2,525
11.4
11.1
96.0
105.0
16.3
14.9
2.8
2.4
0.2
0.2
1.0
0.9
Parag Milk Foods
Neutral
253
-
2,126
1,987
2,379
7.6
9.0
12.4
18.3
20.4
13.8
2.9
2.5
8.2
13.2
1.2
1.0
www.angelbroking.com
Stock Watch
September 04, 2017
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 )
FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E
zOthers
Radico Khaitan
Neutral
166
-
2,205
1,811
1,992
13.2
13.2
8.1
8.8
20.5
18.8
2.1
2.3
10.1
12.0
1.5
1.4
Relaxo Footwears
Neutral
508
-
6,101
1,981
2,310
13.7
14.5
12.0
15.5
42.3
32.8
8.2
6.7
0.2
0.2
3.1
2.7
Siyaram Silk Mills
Accumulate
2,237
2,500
2,097
1,769
1,981
12.7
12.7
113.1
131.1
19.8
17.1
3.1
2.6
15.5
15.5
1.4
1.2
Styrolution ABS India* Neutral
948
-
1,667
1,800
1,980
8.0
8.1
42.0
46.2
22.6
20.5
2.5
2.3
0.1
0.1
1.0
1.0
Surya Roshni
Neutral
291
-
1,275
4,870
5,320
7.7
7.8
22.8
28.1
12.8
10.4
1.7
1.5
0.1
0.1
0.5
0.4
TVS Srichakra
Neutral
3,293
-
2,521
2,729
2,893
12.7
12.5
248.5
265.0
13.3
12.4
3.8
3.1
0.3
0.3
0.9
0.9
Visaka Industries
Neutral
669
-
1,063
1,104
1,214
12.1
12.6
31.0
37.9
21.6
17.7
2.6
2.4
0.1
0.1
1.2
1.1
VIP Industries
Accumulate
236
250
3,341
1,450
1,693
10.4
10.5
6.5
7.8
36.1
30.3
7.6
6.7
21.1
22.1
2.3
2.0
Navin Fluorine
Accumulate
664
730
3,272
945
1,154
22.4
22.6
28.7
34.8
23.2
19.1
3.8
3.3
-
-
3.0
2.3
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on September 01, 2017
www.angelbroking.com
Market Outlook
September 04, 2017
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
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.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
www.angelbroking.com