Angel Top Picks - June 2016
Angel Top Picks - June 2016
The good news continues for the Indian economy. In our last monthly top-picks
report, we had highlighted that several pockets of the economy are witnessing
India’s recent GDP growth has been
growth, mainly driven by consumption and government spending. The latest GDP
driven by private consumption
numbers are a testimony to our claim. India’s GDP for 4QFY2016 grew by 7.9%
while FY2016 GDP growth came in at 7.6%, being primarily driven by private
consumption (55.3% of GDP) which grew by 8.3% for 4QFY2016. Moreover, the
April 2016 core sector production continued to be robust, accelerating at its
fastest pace in the past one year.
Core Sector Growth Rate
11.0
8.5
9.0
6.4
Core sector data and encouraging
7.0
5.7
4.4
consumption growth trends indicate
5.0
3.0
3.2
3.2
2.9
2.6
that things are looking bright
3.0
1.1
0.9
1.0
(1.0)
(0.2)
(1.3)
(3.0)
(5.0)
Opportunities remain in areas that will
benefit
from this
increase
in
consumption and higher government
Source: Company, Angel Research
spending
Amongst the core sectors, Petroleum Refinery Products, Electricity, and Fertilizers,
witnessed healthy growth in the past two months while Cement and Steel too have
performed well indicating the economy is gathering steam and is unfazed by the
uncertainty in the global economy. Apart from the growth witnessed in the core
segment, consumption across various pockets remains encouraging and is
showing promising signs for the future.
Cross section of recent growth trends in various pockets of the economy
Sector
Description
Data/ Growth
Period
Source
Pet. Refinery Prod. Two consecutive months of double digit growth in last three years
15%
Mar/Apr 2016 OEA
Electricity Gen.
Electricity generation up ~10% yoy for the last three months
10%
Feb-Apr 2016 OEA
Cement
Cement Production growing at healthy pace over past four months
10%
Jan-Apr 2016 OEA
Agri Products
Industry expected to grow in double digits on better monsoons
Double digit
FY2017E
Business Standard
Tractor Sales
After subdued FY2016, Escorts’ May sales grew by 10%
10%
May
Escorts
AC Sales
Industry players have guided for 20% growth for FY2017E
20%
FY2017E
Mgmt Blue Star, Videocon
Aviation
Airport Authority revenues grow 17% on high passenger traffic
17%
FY2016
Airports Authority of India
Hotels
Oyo posts 15-fold growth in bookings
15x
Jan-Mar 2016 Mint
Auto
LCV growth strong over last Two months
10% +
Mar-Apr 2016 SIAM
Cons. Equipment
18.2% increase in Cranes sales volumes
18.2
FY2016
Company Mgmt - Ace
Source: Company, Angel Research
Our top-picks are focused on companies that will benefit from this trend of strong
consumption and government’s spending on Infrastructure. Our consumption
based plays include Blue Star, Voltas, Bajaj Electricals, Siyaram Silk Mills and
Radico Khaitan. Our picks that will benefit from higher government focus and
lower borrowing cost include LIC Housing Finance, Dewan Housing Finance,
Mahindra Lifespace, NBCC and IL&FS Transportation Networks.
Please refer to important disclosures at the end of this report
1
Top Picks Report | June 2016
Large Cap
EPS
PER
EV/Sales
ROE
Company
Sector
Rating
CMP (`)
Target (`)
Upside (%)
FY17E FY18E
FY17E FY18E
FY17E FY18E
FY17E FY18E
Amara Raja
Auto Ancill.
Buy
836
1,076
28.7
35.3
43.5
23.7
19.2
2.6
2.1
25.9
26.0
BEL
Capital Goods
Buy
1,143
1,414
23.7
58.7
62.4
19.5
18.3
2.5
2.3
*44.6
*46.3
HCL Tech
IT
Buy
722
1,000
38.5
55.7
64.1
12.9
11.3
1.6
1.2
20.3
17.9
HDFC Bank Financials
Accumulate
1,172
1,262
7.7
61.4
78.3
19.1
15.0
-
-
18.5
21.7
Infosys
IT
Accumulate
1,266
1,374
8.5
65.3
72.3
19.4
17.5
3.6
3.1
22.2
22.4
LIC Housing Fin.Financials
Buy
475
592
24.5
40.6
47.8
11.7
9.8
-
-
20.7
20.5
NBCC
Construction
Accumulate
195
220
11.3
8.2
11.0
23.9
17.8
1.3
0.9
28.2
28.7
Voltas
Capital Goods
Buy
334
407
21.8
12.9
16.3
25.9
20.5
1.7
1.5
16.7
18.5
Source: Angel Research; *Note- Adj. RoEs
Mid Cap
EPS
PER
EV/Sales
ROE
Company
Sector
Rating
CMP (`)
Target (`)
Upside (%)
FY17E FY18E
FY17E FY18E
FY17E FY18E
FY17E FY18E
Bajaj Electricals
Cons. Durable
Buy
222
268
20.7
12.4
15.7
18.0
14.1
0.4
0.4
14.4
16.1
Blue Star
Cons. Durable
Buy
417
495
18.9
17.2
20.6
24.3
20.2
0.9
0.8
23.1
24.1
Dewan Housing Financials
Buy
197
270
36.9
29.7
34.6
6.6
5.7
-
-
16.1
16.8
Equitas Holdings Financials
Buy
174
235
35.4
6.7
9.4
26.0
18.5
-
-
12.4
12.9
IL&FS Transport. Infra
Buy
70
93
33.7
8.6
5.6
8.1
12.4
3.5
3.4
2.5
2.2
Jagran Prakashan Media
Buy
170
205
20.6
10.8
12.5
15.7
13.6
2.4
2.6
21.7
21.7
Mahindra LifespaceReal Estate
Buy
437
554
26.8
30.7
36.3
14.2
12.0
3.1
2.1
7.4
8.5
Navkar Corp.
Logistics
Buy
199
265
33.2
6.8
11.5
29.4
17.3
7.9
5.2
6.9
10.5
Radico Khaitan
Breweries & Dist. Buy
89
125
40.4
6.3
7.4
14.0
12.1
1.1
1.0
8.6
9.3
Siyaram Silk Mills Textile
Buy
1,025
1,347
31.4
104.9
122.4
9.8
8.4
0.7
0.6
16.4
16.4
Source: Angel Research
June 6, 2016
2
Top Picks Report | June 2016
Top Picks - Large Cap
June 6, 2016
3
Top Picks Report | June 2016
Stock Info
Amara Raja Batteries
CMP
836
Amara Raja Batteries Ltd (ARBL) is the second largest lead acid storage battery
TP
1,076
manufacturer in the country. ARBL has been outpacing market leader Exide
Upside
28.7%
(ARBL grew at a 24% CAGR over FY2010-15 as compared to Exide's growth of
13%), leading to its market share improving from 25% in FY10 to about 35%
Sector
Auto Ancillary
currently. ARBL's outperformance has been mainly on back of its association
Market Cap (` cr)
14,285
with global battery leader Johnson Controls Inc (which also holds 26% stake in
Beta
0.8
ARBL) for manufacturing ducts.
52 Week High / Low
1,132 / 773
With the automotive OEMs following a policy of having multiple vendors and
with ARBL’s products enjoying a strong brand recall in the replacement
segment, the company is well poised to gain further market share. Given the
3 year-Chart
economic recovery and market share gains, the company is expected to grow at
a CAGR of 18% over the next two years as against industry growth of 10-12%.
1,200
ARBL is a well diversified auto ancillary player having presence across the
1,000
automotive and the industrial segment and a broad OEM as well as
800
replacement customer base. We believe ARBL is a high quality stock to play
600
the auto sector revival. We maintain our Buy rating on the stock.
400
Key Financials
200
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
-
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
5,429
17.5
604
35.3
25.9
23.7
5.6
14.8
2.6
FY2018E
6,471
17.6
742
43.5
26.0
19.2
4.5
12.1
2.1
Source: Company, Angel Research
Source: Company, Angel Research
Stock Info
Bharat Electronics (BEL)
CMP
1,143
(1) High priority to the defense sector in the government’s ‘Make in India’
TP
1,414
campaign, with (1) emphasis on indigenization, (2) increase in FDI limits from
26% to 49%, and (3) Over $50bn worth of projects cleared by Defense
Upside
23.7%
Acquisition Council (DAC) in the last 24 months, indicate at the sector being at
Sector
Capital Goods
an inflexion point where Indian defense capex cycle is entering a new era of
Market Cap (` cr)
27,390
growth. The current bid pipeline could lead to strong award activity for the
next few years and BEL could emerge as a beneficiary.
Beta
1.1
BEL in FY2016 had ~35% market share in the defense electronics space.
52 Week High / Low
1,417 / 983
Considering (1) bid-pipeline of Indian Air Force and Navy’s platform projects,
which have high defense electronic component, (2) BEL’s in-house R&D
capabilities, and (3) its zero debt status, we believe that BEL would maintain its
3 year-Chart
strong market positioning in the defense electronics space.
1600
1400
We expect BEL to trade at a premium to its historical valuations on account of
1200
uptick in investment cycle. Current low competitive intensity which should
1000
enable BEL to justifiably command scarcity premium, coupled with the fact that
800
the company is the largest listed defense player, makes the stock more
600
attractive. We maintain BUY rating on the stock with price target of `1,414.
400
200
Key Financials
0
Y/E
Sales
OPM PAT EPS Adj. ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
8,137
16.8
1,410
58.7
44.6
19.5
2.7
16.4
2.5
Source: Company, Angel Research
FY2018E
9,169
17.2
1,499
62.4
46.3
18.3
2.6
14.8
2.3
Source: Company, Angel Research
June 6, 2016
4
Top Picks Report | June 2016
Stock Info
HCL Technologies
CMP
722
Healthy pipeline: The company’s engineering services has been seeing lumpy
TP
1000
growth over the last few quarters. This is however largely a function of the
Upside
38.5%
timing of large transformational deals. 6-8 of the large deals signed a few
Sector
IT
quarters ago will aid the company to continue to post industry leading growth.
We expect HCL Tech to post a USD and INR revenue CAGR of 16.3% and
Market Cap (` cr)
1,01,821
18.0%, respectively, over FY2016-18E (inclusive of the acquisition of
Beta
0.7
Geometric Software and the Volvo deal).
52 Week High / Low
1,005 / 707
Robust outlook: HCL Tech signed 7 transformational deals during the quarter
with TCV of more than US$2bn, taking the number of transformational
engagements during the nine month financial year to 25 with TCV of more
3 year-Chart
than US$4bn. These wins were broad-based across service lines and industry
1200
verticals, led by the company’s Next-generation offerings - BEYONDigital, IoT
1000
WoRKS and Next-Gen ITO.
800
Outlook and Valuations: The stock is attractively valued at the current market
600
price and hence we maintain our Buy with a price target of `1,000.
400
Key Financials
200
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
0
June
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
49,242
20.5
7,862
55.7
20.3
12.9
2.6
7.7
1.6
FY2018E
57,168
20.5
9,037
64.1
17.9
11.3
2.0
5.7
1.2
Source: Company, Angel Research
Source: Company, Angel Research
Stock Info
HDFC Bank
CMP
1,172
Strong capital adequacy will enable continued growth going ahead: HDFC
TP
1,262
Bank continued to report strong loan growth of 27% yoy and with capital
Upside
7.7%
adequacy ratio of 15.5% at the end of 4QFY2016, the bank has enough
Sector
Financials
scope to continue to grow its loan book and increase its market share.
Market Cap (` cr)
2,96,452
Asset quality rock-solid: The bank has been able to maintain its asset quality
Beta
0.8
consistently. Asset quality continued to remain healthy with the Gross NPA
52 Week High / Low
1,195 / 929
ratio and the Net NPA ratio at 0.94% and 0.28%, respectively, as of
4QFY2016, in a challenging macro environment.
Outlook: Credit and deposit growth beat the industry growth rate, driven by
3 year-Chart
strong retail business, healthy CASA and continued network expansion. This
1,400
provides strong visibility for a robust 20% earnings trajectory, coupled with
1,200
1,000
high quality of earnings. This in our view justifies a premium valuation
800
multiple. At the current market price, the bank is trading at 3.0x its FY2018E
600
ABV. We recommend an Accumulate rating on the stock, with a target price of
400
`1,262.
200
-
Key Financials
Y/E
Op. Inc NIM
PAT
EPS
ABV ROA ROE P/E P/ABV
March
(` cr)
(%)
(` cr)
(`)
(`)
(%)
(%)
(x)
(x)
Source: Company, Angel Research
FY2017E
47,696
4.5
15,514
61.4
330.3
2.0
18.5
19.1
3.6
FY2018E
58,038
4.5
19,790
78.3
391.5
2.0
21.7
15.0
3.0
Source: Company, Angel Research
June 6, 2016
5
Top Picks Report | June 2016
Stock Info
Infosys
CMP
1,266
Strong revenue guidance for FY2017: The Management has guided towards
TP
1,374
higher revenue growth for FY2017, ie of 11.5-13.5% in CC terms and 12.7-
Upside
8.5%
14.7% in INR terms (exchange rate as on March 31, 2016). For FY2016, the
Sector
IT
company posted a 13.3% growth in CC terms V/s a guidance of 12.8-13.2%
growth (in CC). We expect the company to post ~13.0% USD revenue growth
Market Cap (` cr)
2,90,897
in FY2017.
Beta
0.8
Aims to be US$20bn company by FY2020: The company expects its revenue
52 Week High / Low
1,278 / 933
to rise to US$20bn by FY2020, up from US$8.7bn in FY2015, as it focuses on
acquisitions and winning more new technology services, implying a
14%
CAGR over the period. Over the near term, we expect Infosys to post a 13.0%
3 year-Chart
USD revenue growth in FY2017. Over FY2016-18E, we expect USD and INR
1400
revenue to grow at a CAGR of 13.0% and 13.0%, respectively.
1200
Outlook and Valuations: The stock trades at a valuation of 17.4x FY2018E
1000
earnings. We recommend Buy on the stock with a price target of `1,374.
800
Key Financials
600
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
400
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
70,558
27.5
14,999
65.3
22.2
19.3
4.3
13.1
3.6
FY2018E
79,731
27.5
16,657
72.5
22.4
17.4
3.9
11.4
3.1
Source: Company, Angel Research
Source: Company, Angel Research
Stock Info
LIC Housing Finance
CMP
475
Significant under penetration of mortgages in India: India is expected to
TP
592
witness a robust housing finance growth going forward as the mortgage
Upside
24.5%
penetration in India remains at very low levels at 9% to GDP as compared to
Sector
Financials
the developed countries where it is in the range of 60-100%.
Market Cap (` cr)
23,984
NIM expansion visible: LICHF is able to raise funds from low-cost NCDs due
Beta
1.4
to its strong AAA credit rating and backing by strong promoters like LIC. In a
declining interest rate environment, NBFC's like LICHF are well-placed to
52 Week High / Low
526 / 389
witness margin improvement in our view.
Outlook: For companies like LICHF, the funding environment has eased; thus
3 year-Chart
it will lead to lower cost of borrowing, while outlook for growth in retail
600
housing loans remains positive, going forward. We expect the company to
500
post a healthy loan book CAGR of 19% over FY2016-18E, which is likely to
400
reflect in earnings CAGR of 21.0%, over the same period. The stock currently
300
trades at 2.3x FY2018E ABV. We maintain our Buy rating on the stock, with a
target price of `592.
200
100
Key Financials
-
Y/E
Op. Inc NIM
PAT
EPS
ABV ROA ROE P/E P/ABV
March
(` cr)
(%)
(` cr)
(`)
(`)
(%)
(%)
(x)
(x)
FY2017E
3,758
2.6
2,052
40.6
209.9
1.5
20.7
11.7
2.2
Source: Company, Angel Research
FY2018E
4,448
2.6
2,415
47.8
247.0
1.5
20.5
9.8
1.9
Source: Company, Angel Research
June 6, 2016
6
Top Picks Report | June 2016
Stock Info
National Buildings Construction Corporation (NBCC)
CMP
195
NBCC reported an order book of over
`37,000cr at 4QFY2016-end.
TP
220
Considering the bid pipeline for re-development works from Delhi and other
Upside
11.3%
state governments, and with ‘Smart City’ projects to take-off shortly, we expect
NBCC’s order-book to grow 1.6x during FY2016-18E to `59,710cr.
Sector
Construction
We expect NBCC to report 27.9% revenue CAGR during FY2016-18E (to
Market Cap (` cr)
11,746
`9,549cr), mainly driven by 30.9% revenue CAGR from PMC segment, where
Beta
1.1
re-development projects would contribute the maximum. We expect NBCC to
52 Week High / Low
243/ 141
report 53.2% EBITDA CAGR during the same period, led by increased
contribution from PMC segment, which is likely to experience margin
expansion. Owing to lower other income growth assumption, we expect NBCC
3 year-Chart
to report 45.5% PAT CAGR during FY2016-18E to `659cr.
250
We have a strong positive view on NBCC, given its growth prospects as
200
reflected by its strong order book of `37,000cr (6.3x OB to LTM revenues).
Also, emerging opportunities in re-development space, government’s initiative of
150
developing ‘Smart Cities’, and the company’s cash rich status, should aid its growth.
100
On assigning 20.0x P/E multiple to our FY2018E EPS of `11.0/share, we arrive at a
price target of `220. Given the upside, we recommend Accumulate on the stock.
50
0
Key Financials
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
Source: Company, Angel Research
FY2017E
7,428
7.9
490
8.2
28.2
23.9
5.9
16.1
1.3
FY2018E
9,549
8.6
659
11.0
28.7
17.8
4.5
10.7
0.9
Source: Company, Angel Research
Stock Info
Voltas
CMP
334
Growth in UCP segment to continue: Voltas has maintained 20%+ market
TP
407
share in domestic air-conditioning market despite stiff competition from MNC
Upside
21.8%
players. With economic indicators turning favorable, the company’s
competitive positioning should help its UCP segment to report a 19.5% top-
Sector
Construction & Eng.
line and 16.6% EBIT CAGR, respectively, during FY2016-18E.
Market Cap (` cr)
11,058
Gradual recovery in EMP business: In the run-up to the Qatar World Cup
Beta
1.4
2022 and Dubai Expo 2020, we expect international awarding activity to
52 Week High / Low
360s/ 211
catch-up from FY2017E onwards. Surge in order book should translate to
uptick in execution (10.7% top-line CAGR during FY2016-18E). With legacy
projects completed and contribution of high margin projects kicking-in, we
3 year-Chart
expect segment margins to expand from 1.4% in FY2016 to 5.0% in FY2018E.
400
Strong growth Outlook: On the back of strong 13.3% top-line and 18.1%
350
bottom-line CAGR during FY2016-18E, we expect Voltas to report strong
300
16.7%/18.5% RoE for FY2017/18E, respectively. Considering the positive cues,
250
case for improvement in business segments’ performances and growth potential, we
200
150
expect improved profitability and better investment return ratios, going forward. We
100
assign 25.0x PE multiple to our FY2018E EPS estimate of `16.3/share and arrive at
50
a price target of `407. Given the upside, we recommend Buy on the stock.
0
Key Financials
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
Source: Company, Angel Research
FY2017E
6,511
7.9
427
12.9
16.7
25.9
4.1
21.4
1.7
FY2018E
7,514
8.7
538
16.3
18.5
20.5
3.6
16.8
1.5
Source: Company, Angel Research
June 6, 2016
7
Top Picks Report | June 2016
Top Picks - Mid Cap
June 6, 2016
8
Top Picks Report | June 2016
Stock Info
Bajaj Electricals
CMP
222
The company is among the top 4 players in the consumer durables space
TP
268
across all its product categories (leader in small appliances; number-4 in fans
Upside
20.7%
and lighting). It has a strong distribution reach with 4,000 distributors
Sector
Cons. Durable
reaching out to 400,000 retailers.
Market Cap (` cr)
2,243
In the 3 years preceding FY2016, the company’s E&P segment had been
Beta
0.9
underperforming owing to cost overruns and delays in project executions.
However, the segment has turned around in FY2016 on the profitability front
52 Week High / Low
310 / 155
and delivered a healthy EBIT margin of ~6% for the year. Currently the
segment’s order book stands at `2,480cr.
3 year-Chart
With expectation of timely execution of new projects in the E&P segment and
400
with the Lighting and Consumer Durables segments expected to benefit from
350
an improvement in consumer sentiments going forward, we expect the
300
company’s top-line to grow at a CAGR of ~15% to `6,098cr and bottom-line
250
200
to grow at a CAGR of 29% to `159cr over FY2016-FY2018E. We recommend
150
a Buy rating on the stock.
100
50
Key Financials
0
Y/E
Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
5,351
5.6
125
12.4
14.4
18.0
2.6
7.7
0.4
Source: Company, Angel Research
FY2018E
6,098
5.9
159
15.7
16.1
14.1
2.3
6.5
0.4
Source: Company, Angel Research
Stock Info
Blue Star
CMP
417
BSL is one of the largest air-conditioning companies in India. With a mere
TP
495
3% penetration level of ACs vs 25% in China, the overall outlook for the room
Upside
18.9%
air-conditioner (RAC) market in India is favourable.
Sector
Cons. Durable
BSL’s RAC business has been outgrowing the industry by ~10% points over the
Market Cap (` cr)
3,746
last few quarters, resulting in the company consistently increasing its market
share (~7% in FY2014 to 10.5% at present). This has resulted in the Cooling
Beta
0.6
Products Division (CPD)'s share in overall revenues increasing from~23% in
52 Week High / Low
444 / 306
FY2010 to ~42% in FY2016 (expected to improve to ~47% in FY2018E). With
strong brand equity and higher share in split ACs, we expect the CPD to
3 year-Chart
continue to drive growth.
500
Aided by increasing contribution from the CPD, we expect the overall top-line
to post a revenue CAGR of ~15% over FY2016-18E and margins to improve
400
from 5.7% in FY2015 to 7.1% in FY2018E. Moreover, the merger with Blue
300
Star Infotech has infused cash and strengthened the balance sheet. We
200
maintain our Buy recommendation on the stock.
100
Key Financials
-
Y/E
Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
4,351
6.4
164
17.2
23.1
24.3
5.3
14.4
0.9
Source: Company, Angel Research
FY2018E
5,024
7.1
197
20.6
24.1
20.2
4.5
11.3
0.8
Source: Company, Angel Research
June 6, 2016
9
Top Picks Report | June 2016
Stock Info
Dewan Housing Finance
CMP
197
3rd largest private sector housing finance company: We expect DHFL’s AUM to
TP
270
grow at a CAGR of 21% over FY2016-18, as demand for housing in the
Upside
36.9%
middle & low income group picks up, while PAT CAGR is expected to be 22%
Seasoned and granular loan book with stable asset quality: Individual
Sector
Financials
borrowers account for 72%, while the high yielding loan against property
Market Cap (` cr)
5,754
(LAP+SME) and projects loans account for 19% and 9% of advances respectively.
Beta
1.6
Despite strong loan growth, the GNPAs and NNPAs are likely to be at ~1.17% and
52 Week High / Low
268 / 141
0.82%, respectively, for FY2017. We don’t expect any major deterioration in the
asset quality going ahead.
Lower cost of funds will help maintain NIM: Nearly 70% of the bank
3 year-Chart
borrowings are due for maturity over the next three years and swapping a part
300
of that with non-convertible debentures (NCDs), where it has ~100bp cost
250
benefit, will help DHFL in maintaining its NIM at ~2.9%.
200
Outlook: We expect the company to post a healthy loan book CAGR of 21%
over FY2015-18E, which is likely to translate in an earnings CAGR of 22%,
150
over the same period. The stock currently trades at 0.9x FY2018E ABV. We
100
recommend a Buy on the stock, with a target price of `270.
50
-
Key Financials
Y/E
Op. Inc NIM
PAT
EPS
ABV ROA ROE P/E P/ABV
March
(` cr)
(%)
(` cr)
(`)
(`)
(%)
(%)
(x)
(x)
Source: Company, Angel Research
FY2017E
2,225
2.9
866
29.7
184.0
1.1
16.1
6.6
1.1
FY2018E
2,688
2.9
1,084
34.6
215.3
1.2
16.8
5.7
0.9
Source: Company, Angel Research
Stock Info
Equitas Holdings
CMP
174
Early mover advantage in the SFB category: Equitas was one of the ten NBFCs
TP
235
to get the license to start a small finance bank (SFB). As the entire book of
Upside
35.4%
Equitas qualifies for PSL, meeting the 75% PSL target will not be a challenge.
Sizeable and diversified loan book will keep it ahead of other upcoming SFBs.
Sector
Financials
Asset quality and return ratios are likely to remain stable: Equitas will have to
Market Cap (` cr)
5,822
maintain CRR & SLR going ahead; hence yield on total assets is likely to come
Beta
0.9
down. However, as a bank it will be able to raise deposits and hence there will
52 Week High / Low
188 / 134
be reduction in cost of funds. As a result, spreads may not decline much which
in turn will help in maintaining the ROE & ROA which although could undergo
3 year-Chart
a marginal decline. Also we don’t expect any major deterioration in the asset
220
quality going ahead.
200
NIM likely to remain healthy : Equitas will be able to take deposits after it
formally starts banking operations leading to ~250bp reduction in cost of
180
funds. Hence we expect the NIM to remain strong at ~11%, going ahead.
160
Outlook: We expect the company to post a strong loan book & earnings
140
CAGR of 38% & 37% over FY2016-18E. The stock currently trades at 2.2x
120
FY2018E BV. We recommend a Buy on the stock, with a target price of `235.
100
Key Financials
Y/E
Op. Inc NIM
PAT
EPS
ABV ROA ROE P/E P/ABV
March
(` cr)
(%)
(` cr)
(`)
(`)
(%)
(%)
(x)
(x)
Source: Company, Angel Research
FY2017E
1,076
11.7
224
6.7
68.2
2.8
12.4
26.0
2.6
FY2018E
1,465
11.4
315
9.4
77.6
2.8
12.9
18.5
2.2
Source: Company, Angel Research
June 6, 2016
10
Top Picks Report | June 2016
Stock Info
IL&FS Transportation Networks
CMP
70
ITNL reported Commercial Operations Date (CoD) for JSEL and PSRDCL. Also,
TP
93
Completion certificate was issued for BKEL. TRDCL P-III and CNTL are
Upside
33.7%
expected to commence in the next few months. Further, RIDCRO P-III, KSEL,
Sector
Construction
KNEL, and BAEL are expected to commence operations in the next 9-12
months. Accordingly, we expect revenue from these projects to increase by
Market Cap (` cr)
2,288
~`4cr/day (unadj. for stake).
Beta
1.0
Strategic initiatives like stake sale at SPV level, listing of operational BOT
52 Week High / Low
155/64
projects under InvITs, and re-financing of BOT projects should help the
company unlock value. Money raised from these initiatives could be used to
3 year-Chart
lower debt and improve the profitability.
300
With 7 projects expected to commence in the next 12 months, we expect the
250
debt repayment cycle at SPV level to commence, resulting in the overall consol.
200
D/E levels peaking out at ~4.0x. With concerns over higher D/E levels allayed
150
to a certain extent, coupled with the attractive valuations of 0.3x FY2017E
100
P/BV multiple that the ITNL stock is trading at, we maintain our Buy on the
50
stock with price target of `93.
0
Key Financials
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
Source: Company, Angel Research
FY2017E
8,682
32.2
285
8.6
2.5
8.1
0.3
10.6
3.5
FY2018E
10,135
33.3
185
5.6
2.2
12.4
0.3
10.2
3.4
Source: Company, Angel Research
Stock Info
Jagran Prakashan
CMP
170
We expect JPL to register a net sales CAGR of ~12% over FY2016-18E, on
TP
205
back of (a) strong growth in advertising revenue due to improvement in GDP
growth, and (b) improvement in circulation revenue owing to combination of
Upside
20.6%
increase in cover price and volume growth.
Sector
Media
Further the acquisition of Radio City would also boost the company's revenue
Market Cap (` cr)
5,656
going ahead. Radio City has ~20 stations across 7 states in the country and is
second only to ENIL in all its operating circles, ie Delhi, Mumbai, Bengaluru,
Beta
0.6
Chennai, Ahmedabad, Hyderabad, Pune and Lucknow. The company covers
52 Week High / Low
180/110
~51% (~66mn people) of the total radio population.
Raw material prices have been in a declining trend. Thus, considering lower
3 year-Chart
news print costs, healthy sales, and higher margins in the radio business, we
200
expect an adj. net profit CAGR of ~12% over FY2016-18E to `409cr.
180
160
Considering Dainik Jagran's strong presence in the rapidly growing Hindi
140
markets, we expect JPL to benefit from an eventual recovery in the Indian
120
economy. Hence, we maintain an Accumulate rating on the stock with a target
100
80
price of stock with a target price of `205.
60
40
Key Financials
20
0
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
2,355
28.0
353
10.8
21.7
15.7
3.4
8.5
2.4
FY2018E
2,635
28.0
409
12.5
21.7
13.6
3.0
7.4
2.1
Source: Company, Angel Research
Source: Company, Angel Research
June 6, 2016
11
Top Picks Report | June 2016
Stock Info
Mahindra Lifespace
CMP
437
Speedy execution & speedier sales: MLF has 13 projects under implementation
TP
554
across cities. MLF has exhibited fast completion of projects (4-4.5 years in
Mumbai, other-wise 3-3.5 years across other cities), compared to others. Sales
Upside
26.8%
cycle in ~65% of projects is faster than execution cycle, contrary to industry
Sector
Real Estate
trends. This fast execution and sales is optimal, as it helps MLF in revenue
Market Cap (` cr)
1,792
recognition, inventory cycle (better than Oberoi, DLF), cash flows and
profitability. This translates in creating a virtuous cycle of continuous fast growth.
Beta
0.4
Strong revenue growth visibility in short-to-long run: MLF as of 4QFY2016 is
52 Week High / Low
559 / 401
pursuing ~4.0mn sq. ft. of sale of the total ~15.0mn sq. ft. of saleable area.
Having sold ~60% of ongoing projects, we expect MLF to launch ~2.8mn
3 year-Chart
sq.ft. of saleable area in rational way during 4QFY2016-2QFY2018E, across
700
6 cities. Maturity at existing projects, new launches give better revenue visibility
600
for medium-term. Further, MLF is sitting on land bank of 11.0mn sq.ft across
500
4 cities, which allays any concern over long-term revenue growth.
400
With Real Estate Regulatory Bill closer to realty, MLF should be minimally
300
impacted, given their strong parentage and ethically implemented processes.
200
In the longer-term organized, professionally run, well funded players would
100
enjoy strong trust due to reliable and fast execution strategies. With
0
improvement in company’s fundamentals, strong earnings growth visibility
and long-term growth outlook, at current valuations of 1.1x FY2017E P/BV,
MLF stock looks attractive. We maintain BUY on MLF with target price of `554.
Source: Company, Angel Research
Key Financials
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
1,011
21.9
125
30.7
7.4
14.2
1.1
12.2
3.1
FY2018E
1,303
22.5
149
36.3
8.5
12.0
1.1
9.5
2.1
Source: Company, Angel Research
Stock Info
Navkar
CMP
199
NCL is one of the largest and one of the three CFS at JNPT with rail
TP
265
connectivity, helping it garner high market share at the port. NCL is in a massive
Upside
33.2%
expansion mode where it is increasing its capacity by 234% to 1,036,889 TEUs
at JNPT and coming up with an ICD at Vapi (with Logistics Park).
Sector
Logistics
Market Cap (` cr)
2,833
The ICD with rail link should benefit from first mover advantage in a region
that has huge market potential and accounts for ~27% of volumes at JNPT.
Beta
0.6
The ICD should be able to capture the EXIM volumes from the region through
52 Week High / Low
221 / 151
rail link that till now was being custom cleared at JNPT (Import) or being
transported via road and consolidated at JNPT (Export). South Gujarat
3 year-Chart
volumes will now head straight to the Vapi ICD; thus the company can now
250
cater to bulk commodities and domestic traffic that it had been rejecting owing
200
to capacity constraints at CFS.
150
We expect NCL to successfully use its rail advantage and scale up its
utilizations at both JNPT and Vapi ICD. We have a Buy rating on the stock.
100
50
Key Financials
0
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
408
42.9
97
6.8
6.9
29.4
2.0
18.3
7.9
Source: Company, Angel Research
FY2018E
612
42.3
164
11.5
10.5
17.3
1.8
12.4
5.2
Source: Company, Angel Research
June 6, 2016
12
Top Picks Report | June 2016
Radico Khaitan
Stock Info
CMP
89
The IMFL segment is under penetrated. Going forward, increase in income
TP
125
levels would lead to higher growth in IMFL brands. RKL has strong brands in
Upside
40.4%
the premium liquor category which reported a CAGR of ~26% over the last
seven-year period. We expect the growth momentum to continue.
Sector
Breweries & Distilleries
Market Cap (` cr)
1,183
We expect the price of ENA, a key raw material, to remain stable and
potentially even decline going forward due to higher sugar production and
Beta
0.8
lower demand for ethanol from Indian oil marketing companies
52 Week High / Low
131/78
We expect a significant hike in liquor prices in the coming financial year as
there haven't been any significant ones in recent times. Also, we believe that
3 year-Chart
industry leader - United Spirits would shift focus on profitability over volume
180
growth considering the debt on its balance sheet, which in turn, would lead to
160
140
increased scope for other liquor companies to hike prices.
120
100
On valuation basis, Radico is trading at huge discount to its close peer United
80
Spirits. We have a Buy rating on the stock and target price of `125 (17x
60
FY2018E EPS)
40
20
0
Key Financials
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
1,659
13.0
84
6.3
8.6
14.0
1.2
8.8
1.1
Source: Company, Angel Research
FY2018E
1,802
13.2
98
7.4
9.3
12.1
1.1
7.9
1.0
Source: Company, Angel Research
Stock Info
Siyaram Silk Mills
CMP
1,025
SSML has strong brands which cater to premium as well as popular mass
TP
1,347
segments of the market. Further, in FY2014, SSML entered the ladies' salwar
Upside
31.4%
kameez and ethnic wear segment. Going forward, we believe that the company
Sector
Textile
would be able to leverage its brand equity and continue to post strong performance.
Market Cap (` cr)
961
The company has a nationwide network of about 1,600 dealers and business
Beta
0.8
partners. It has a retail network of 160 stores and plans to add another 300-
350 stores going forward. Further, the company's brands are sold across
52 Week High / Low
1,400/896
3,00,000 multi brand outlets in the country.
Going forward, we expect SSML to report a net sales CAGR of ~12% to
3 year-Chart
~`2,040cr and adj.net profit CAGR of ~14% to `115cr over FY2016-18E on
1600
back of market leadership in blended fabrics, strong brand building, wide
1400
distribution channel, strong presence in tier II and tier III cities and emphasis
1200
on latest designs and affordable pricing points. At the current market price,
1000
SSML trades at an inexpensive valuation. We have a Buy rating on the stock
800
and target price of `1,347.
600
400
Key Financials
200
0
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
1,799
11.6
98
104.9
16.4
9.8
1.6
6.3
0.7
FY2018E
2,040
11.7
115
122.4
16.4
8.4
1.4
5.5
0.6
Source: Company, Angel Research
Source: Company, Angel Research
June 6, 2016
13
Top Picks Report | June 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
4.2
4.3
3.7
5.8
4.0
2.5
6.0
2.0
2.0
0.1
5.0
-
4.0
(2.0)
(0.9)
(1.5)
(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
(%)
5.6
5.7
6.0
5.4
5.4
5.4
5.3
54.0
5.0
5.0
4.8
5.0
4.4
52.0
3.7
3.7
4.0
50.0
3.0
48.0
2.0
46.0
1.0
44.0
-
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Source: MOSPI, Angel Research
Exhibit 5: Exports and imports growth trends
Exhibit 6: Key policy rates
(%)
Exports yoy growth
Imports yoy growth
(%)
Repo rate
Reverse Repo rate
CRR
0.0
7.50
(5.0)
7.00
6.50
(10.0)
6.00
(15.0)
5.50
(20.0)
5.00
4.50
(25.0)
4.00
(30.0)
3.50
(35.0)
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
June 6, 2016
14
Top Picks Report | June 2016
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
6.7
5.3
6.0
4.9
4.2
4.0
3.2
2.0
2.0
1.3
1.4
2.0
0.5
-
-
(2.0)
(1.2)
(4.0)
(6.0)
(5.4)
(8.0)
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
6.5
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
June 6, 2016
15
Top Picks Report | June 2016
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
50,620
(3.1)
12.8
(6.7)
Russia
Micex
1,887
(3.4)
2.3
15.8
India
Nifty
8,221
6.7
16.9
(2.5)
China
Shanghai Composite
2,939
(1.8)
2.8
(40.5)
South Africa
Top 40
48,084
5.5
9.8
4.3
Mexico
Mexbol
45,928
1.3
2.9
3.1
Indonesia
LQ45
831
0.5
(0.7)
(9.8)
Malaysia
KLCI
1,636
(1.3)
(3.3)
(6.4)
Thailand
SET 50
917
3.3
7.7
(8.0)
USA
Dow Jones
17,807
0.3
5.1
(0.2)
UK
FTSE
6,210
0.4
0.9
(8.5)
Japan
Nikkei
16,642
(0.1)
3.8
(18.6)
Germany
DAX
10,103
1.8
3.3
(8.2)
France
CAC
4,422
2.3
0.1
(9.8)
Source: Bloomberg, Angel Research
June 6, 2016
16
Top Picks Report | June 2016
Stock Watch
June 6, 2016
17
Stock Watch | June 2016
Company Name
Reco
CMP
Target
Mkt Cap
Sales (` cr)
OPM (%)
EPS (`)
PER (x)
P/BV (x)
RoE (%)
EV/Sales (x)
(`)
Price (`)
(` cr)
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
Agri / Agri Chemical
Rallis
Neutral
215
-
4,188
1,612
1,911
13.3
13.3
7.4
9.5
29.1
22.7
4.7
4.2
16.7
18.4
2.6
2.2
United Phosphorus
Accumulate
606
684
25,963
13,083
15,176
18.5
18.5
31.5
37.4
19.2
16.2
3.8
3.2
21.4
21.4
2.2
1.8
Auto & Auto Ancillary
Ashok Leyland
Neutral
106
-
30,266
17,995
21,544
11.4
11.6
3.4
4.7
31.3
22.6
5.5
5.0
17.7
22.2
1.6
1.3
Bajaj Auto
Neutral
2,635
-
76,248
22,709
25,860
20.9
20.1
129.0
143.6
20.4
18.3
6.3
5.4
30.7
29.4
2.9
2.5
Bharat Forge
Buy
751
875
17,486
7,351
8,318
19.9
19.7
31.2
36.5
24.1
20.6
4.3
3.6
19.3
19.2
2.5
2.2
Eicher Motors
Accumulate 18,787
20,044
51,028
15,556
16,747
15.5
17.3
464.8
597.5
40.4
31.4
14.8
10.9
36.2
34.3
3.2
2.9
Gabriel India
Accumulate
90
101
1,289
1,415
1,544
8.7
9.0
4.6
5.4
19.5
16.6
3.5
3.1
18.1
18.9
0.9
0.8
Hero Motocorp
Neutral
3,147
-
62,838
28,244
30,532
15.5
15.9
156.7
168.5
20.1
18.7
8.0
6.8
39.9
36.4
2.1
1.9
Jamna Auto Industries
Neutral
161
-
1,283
1,281
1,473
11.2
11.5
7.6
9.2
21.1
17.5
5.3
4.4
25.4
25.2
1.1
0.9
L G Balakrishnan & Bros Neutral
465
-
730
1,254
1,394
11.6
11.8
35.9
41.7
13.0
11.2
1.8
1.5
13.5
13.8
0.7
0.6
Mahindra and Mahindra Neutral
1,353
-
84,062
38,416
42,904
13.7
13.9
54.8
63.4
24.7
21.3
3.8
3.4
15.4
15.8
1.8
1.6
Maruti
Neutral
4,220
-
127,481
57,865
68,104
16.4
16.7
176.3
225.5
23.9
18.7
4.6
4.0
19.4
21.2
2.0
1.6
Minda Industries
Neutral
1,177
-
1,868
2,523
2,890
8.7
9.0
55.0
65.4
21.4
18.0
4.1
3.4
19.3
18.7
0.8
0.7
Motherson Sumi
Accumulate
276
313
36,567
39,343
45,100
8.8
9.1
10.1
12.5
27.4
22.1
8.7
6.8
35.3
34.4
1.0
0.9
Rane Brake Lining
Buy
378
465
299
454
511
11.5
12.0
25.2
31.0
15.0
12.2
2.2
2.0
14.9
16.6
0.8
0.7
Setco Automotive
Neutral
39
-
521
594
741
12.7
13.7
1.7
3.2
22.9
12.2
2.4
2.1
10.4
16.9
1.3
1.1
Tata Motors
Neutral
454
-
131,050
259,686
273,957
13.0
13.4
25.9
29.5
17.5
15.4
2.3
2.0
8.0
9.0
0.7
0.7
TVS Motor
Accumulate
297
330
14,115
11,263
13,122
6.9
8.5
9.2
15.0
32.3
19.8
7.4
5.9
22.7
29.6
1.2
1.0
Amara Raja Batteries
Buy
836
1,076
14,285
4,690
5,429
17.5
17.5
28.4
35.3
29.4
23.7
6.8
5.6
23.1
25.9
3.0
2.6
Exide Industries
Neutral
158
-
13,409
6,950
7,784
14.4
14.8
6.6
7.3
23.9
21.6
3.0
2.7
12.6
12.8
1.6
1.5
Apollo Tyres
Buy
151
183
7,684
12,056
12,714
17.2
16.4
23.0
20.3
6.6
7.4
1.2
1.0
17.7
13.6
0.7
0.7
Ceat
Buy
901
1,119
3,643
6,041
6,597
14.1
13.7
99.5
111.9
9.1
8.0
1.8
1.5
19.6
18.5
0.7
0.6
JK Tyres
Neutral
86
-
1,959
7,446
7,669
15.2
14.0
19.6
18.4
4.4
4.7
1.1
0.9
25.2
19.5
0.7
0.6
Swaraj Engines
Neutral
1,104
-
1,371
552
630
14.2
14.7
44.6
54.1
24.7
20.4
5.8
5.2
23.2
25.6
2.3
2.0
Subros
Neutral
93
-
556
1,293
1,527
11.8
11.9
4.2
6.7
22.1
13.8
1.7
1.5
7.7
11.5
0.7
0.6
Indag Rubber
Neutral
189
-
495
283
329
17.0
17.2
13.0
15.4
14.6
12.2
3.2
2.6
21.8
21.6
1.5
1.2
Banking
Allahabad Bank
Neutral
51
-
3,109
8,569
9,392
2.8
2.9
16.3
27.5
3.1
1.8
0.3
0.23
7.6
11.9
-
-
Axis Bank
Neutral
543
-
129,443
26,204
29,738
3.6
3.5
34.5
35.4
15.7
15.3
2.5
2.20
16.8
14.9
-
-
Bank of Baroda
Neutral
140
-
32,304
18,802
21,088
2.0
2.2
(7.4)
13.0
-
10.8
1.1
0.9
(4.2)
7.3
-
-
Bank of India
Neutral
84
-
7,851
15,972
17,271
1.9
2.0
15.3
33.3
5.5
2.5
0.2
0.2
3.6
7.6
-
-
Canara Bank
Neutral
193
-
10,461
15,441
16,945
2.0
2.1
46.6
70.4
4.1
2.7
0.4
0.3
8.0
11.2
-
-
Dena Bank
Neutral
29
-
1,934
3,440
3,840
2.1
2.3
7.2
10.0
4.0
2.9
0.3
0.2
6.1
7.9
-
-
Dewan Housing Finance Buy
197
270
5,754
1,828
2,225
2.9
2.9
24.9
29.7
7.9
6.6
1.2
1.1
15.0
16.1
-
-
Equitas Holdings
Buy
174
235
5,822
679
1,076
12.4
11.7
6.2
6.7
28.0
25.9
3.5
2.5
13.3
12.5
-
-
Federal Bank
Neutral
51
-
8,779
3,279
3,787
2.8
2.9
3.9
5.5
13.0
9.2
1.1
1.0
8.4
10.8
-
-
HDFC
Neutral
1,256
-
198,349
10,358
11,852
3.3
3.3
41.1
47.0
30.6
26.7
5.8
5.3
24.7
24.9
-
-
HDFC Bank
Accumulate
1,172
1,262
296,452
38,606
47,696
4.4
4.5
48.8
61.4
24.0
19.1
4.1
3.55
18.7
20.0
-
-
ICICI Bank
Neutral
244
-
141,695
34,279
39,262
3.3
3.3
21.0
24.4
11.6
10.0
2.0
1.7
14.4
14.7
-
-
June 6, 2016
18
Stock Watch | June 2016
Company Name
Reco
CMP
Target
Mkt Cap
Sales (` cr)
OPM (%)
EPS (`)
PER (x)
P/BV (x)
RoE (%)
EV/Sales (x)
(`)
Price (`)
(` cr)
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
IDBI Bank
Neutral
64
-
13,207
9,625
10,455
1.8
1.8
8.5
14.2
7.5
4.5
0.5
0.4
5.9
9.3
-
-
Indian Bank
Neutral
92
-
4,428
6,160
6,858
2.4
2.5
24.5
29.8
3.8
3.1
0.3
0.3
7.7
8.6
-
-
LIC Housing Finance
Buy
475
592
23,984
3,179
3,758
2.6
2.6
32.9
40.6
14.5
11.7
2.7
2.3
19.6
20.7
-
-
Oriental Bank
Neutral
81
-
2,795
7,643
8,373
2.4
2.4
37.2
45.4
2.2
1.8
0.2
0.2
8.2
9.4
-
-
Punjab Natl.Bank
Neutral
76
-
14,953
23,122
26,022
2.8
2.8
7.0
21.6
10.9
3.5
0.6
0.5
3.4
10.0
-
-
South Ind.Bank
Neutral
19
-
2,566
1,965
2,185
2.5
2.5
2.5
3.3
7.6
5.8
0.8
0.7
9.5
11.6
-
-
St Bk of India
Neutral
197
-
152,539
79,958
86,060
2.6
2.6
13.4
20.7
14.7
9.5
1.2
1.1
11.5
12.8
-
-
Union Bank
Neutral
113
-
7,785
12,646
14,129
2.3
2.4
31.0
39.1
3.7
2.9
0.4
0.3
9.8
11.4
-
-
Vijaya Bank
Neutral
30
-
2,830
3,536
3,827
1.8
1.9
5.5
6.7
5.5
4.6
0.5
0.4
7.8
8.8
-
-
Yes Bank
Neutral
1,049
-
44,155
7,190
9,011
3.2
3.3
58.2
69.7
18.0
15.1
3.2
2.7
19.2
19.6
-
-
Capital Goods
ACE
Neutral
40
-
399
660
839
4.7
8.2
1.0
3.9
40.4
10.3
1.3
1.1
3.2
11.3
0.8
0.6
BEML
Buy
829
1,157
3,453
3,277
4,006
6.0
8.9
36.2
64.3
22.9
12.9
1.6
1.4
5.7
11.7
1.1
0.9
Bharat Electronics
Buy
1,143
1,414
27,439
7,295
8,137
20.0
16.8
56.5
58.7
20.2
19.5
3.0
2.7
42.1
44.6
3.0
2.5
Voltas
Buy
334
407
11,058
5,857
6,511
7.5
7.9
11.7
12.9
28.6
25.9
4.7
4.1
17.1
16.7
1.9
1.7
BGR Energy
Neutral
113
-
812
3,615
3,181
9.5
9.4
16.7
12.4
6.7
9.1
0.6
0.6
10.0
7.0
0.6
0.8
BHEL
Neutral
118
-
28,869
33,722
35,272
10.8
11.7
10.5
14.2
11.2
8.3
0.8
0.8
7.0
9.0
0.9
0.9
Blue Star
Buy
416
495
3,746
3,770
4,351
5.7
6.4
11.4
17.2
36.5
24.3
5.7
5.3
18.4
23.1
1.0
0.9
Crompton Greaves
Neutral
72
-
4,491
13,484
14,687
4.9
6.2
4.5
7.1
15.9
10.1
1.1
1.1
7.2
10.8
0.5
0.4
Greaves Cotton
Neutral
137
-
3,355
1,655
1,755
16.6
16.8
7.4
7.8
18.6
17.6
3.7
3.5
21.1
20.6
2.0
1.9
Inox Wind
Buy
218
286
4,846
4,406
5,605
15.5
15.7
20.4
24.8
10.7
8.8
2.5
1.8
27.9
25.9
1.3
1.0
KEC International
Neutral
136
-
3,485
8,791
9,716
6.1
6.8
5.4
8.2
25.1
16.5
2.5
2.3
10.0
14.0
0.6
0.6
Thermax
Neutral
757
-
9,022
6,413
7,525
7.4
8.5
30.5
39.3
24.8
19.3
3.8
3.3
15.0
17.0
1.4
1.1
VATech Wabag
Neutral
608
-
3,312
2,722
3,336
7.9
8.1
19.5
24.6
31.2
24.7
3.3
2.9
11.1
12.4
1.3
1.1
Cement
ACC
Neutral
1,536
-
28,839
13,151
14,757
16.4
18.3
63.9
83.4
24.0
18.4
3.1
2.8
13.3
16.1
2.0
1.7
Ambuja Cements
Neutral
228
-
35,414
11,564
12,556
19.4
20.7
8.9
10.1
25.6
22.6
3.2
3.0
12.8
13.8
2.7
2.5
HeidelbergCement
Neutral
106
-
2,400
1,772
1,926
13.3
15.4
1.0
3.0
105.9
35.3
2.7
2.5
2.6
7.9
1.9
1.7
India Cements
Neutral
96
-
2,934
4,216
4,840
18.0
19.5
4.0
9.9
23.9
9.6
1.0
0.9
4.0
9.5
1.0
0.8
JK Cement
Neutral
612
-
4,283
3,661
4,742
10.1
15.8
7.5
28.5
81.7
21.5
2.5
2.2
7.5
22.9
1.6
1.2
J K Lakshmi Cement
Neutral
338
-
3,983
2,947
3,616
16.7
19.9
11.5
27.2
29.4
12.4
2.8
2.4
9.8
20.8
1.8
1.4
Mangalam Cements
Neutral
268
-
716
1,053
1,347
10.5
13.3
8.4
26.0
31.9
10.3
1.3
1.2
4.3
12.5
1.1
0.8
Orient Cement
Neutral
167
-
3,416
1,854
2,524
21.2
22.2
7.7
11.1
21.7
15.0
3.1
2.7
13.3
15.7
2.6
1.8
Ramco Cements
Neutral
501
-
11,935
4,036
4,545
20.8
21.3
15.1
18.8
33.2
26.7
4.1
3.6
12.9
14.3
3.5
3.0
Shree Cement^
Neutral
13,617
-
47,436
7,150
8,742
26.7
28.6
228.0
345.5
59.7
39.4
8.8
7.4
15.7
20.3
6.4
5.1
UltraTech Cement
Neutral
3,189
-
87,518
24,669
29,265
18.2
20.6
82.0
120.0
38.9
26.6
4.2
3.7
11.3
14.7
3.6
3.1
Construction
ITNL
Buy
70
93
2,288
7,360
8,682
34.0
32.2
7.0
8.6
9.9
8.1
0.3
0.3
3.2
2.5
3.7
3.5
KNR Constructions
Neutral
580
-
1,632
937
1,470
14.3
14.0
44.2
38.6
13.1
15.0
2.6
2.3
15.4
15.4
1.8
1.2
Larsen & Toubro
Buy
1,461
1,700
136,141
58,870
65,708
8.3
10.3
42.0
53.0
34.8
27.6
2.4
2.2
8.8
11.2
2.5
2.3
Gujarat Pipavav Port
Neutral
158
-
7,660
629
684
51.0
52.2
6.4
5.9
24.8
26.9
3.3
3.0
15.9
12.7
11.8
10.7
MBL Infrastructures
Buy
121
285
502
2,313
2,797
12.2
14.6
19.0
20.0
6.4
6.1
0.7
0.6
11.3
10.6
0.9
0.8
Nagarjuna Const.
Neutral
71
-
3,922
7,892
8,842
8.8
9.1
3.0
5.3
23.5
13.3
1.2
1.1
5.0
8.5
0.7
0.6
PNC Infratech
Neutral
555
-
2,845
1,873
2,288
13.2
13.5
24.0
32.0
23.1
17.3
2.2
2.0
12.1
12.3
1.6
1.3
June 6, 2016
19
Stock Watch | June 2016
Company Name
Reco
CMP
Target
Mkt Cap
Sales (` cr)
OPM (%)
EPS (`)
PER (x)
P/BV (x)
RoE (%)
EV/Sales (x)
(`)
Price (`)
(` cr)
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
Simplex Infra
Neutral
270
-
1,337
5,955
6,829
10.3
10.5
16.0
31.0
16.9
8.7
0.9
0.8
5.3
9.9
0.7
0.6
Power Mech Projects
Neutral
593
-
872
1,539
1,801
12.8
12.7
59.0
72.1
10.1
8.2
1.5
1.3
18.6
16.8
0.6
0.5
Sadbhav Engineering
Accumulate
280
298
4,810
3,186
3,598
10.2
10.3
8.0
9.0
35.1
31.2
3.3
2.9
9.4
9.9
1.8
1.6
NBCC
Accumulate
196
220
11,772
5,838
7,428
6.0
7.9
5.2
8.2
37.7
23.9
4.8
5.9
21.9
28.2
1.8
1.3
MEP Infra
Neutral
37
-
599
1,956
1,876
28.1
30.5
1.3
3.0
28.3
12.3
5.9
4.0
21.2
32.8
1.7
1.7
SIPL
Neutral
97
-
3,399
675
1,042
62.4
64.7
-
-
3.6
4.1
-
-
16.7
11.3
Engineers India
Neutral
192
-
6,476
1,667
1,725
13.5
16.0
9.7
11.4
19.8
16.9
2.3
2.3
11.7
13.4
2.7
2.7
FMCG
Asian Paints
Neutral
1,026
-
98,375
15,534
17,445
17.7
16.8
18.4
19.6
55.8
52.3
19.7
18.6
34.6
35.6
6.2
5.5
Britannia
Neutral
2,763
-
33,146
8,481
9,795
14.0
14.1
65.5
78.3
42.2
35.3
20.0
16.4
38.3
41.2
3.8
3.3
Colgate
Neutral
866
-
23,550
4,136
4,632
22.5
23.3
22.2
25.3
39.0
34.2
23.7
21.1
68.6
67.5
5.6
5.0
Dabur India
Neutral
305
-
53,715
9,370
10,265
17.6
17.3
7.3
8.1
41.6
37.7
10.8
9.9
31.7
30.6
5.5
5.1
GlaxoSmith Con*
Accumulate
5,728
6,118
24,091
4,519
5,142
19.6
19.8
164.3
191.2
34.9
30.0
9.7
8.2
30.8
29.9
4.7
4.1
Godrej Consumer
Neutral
1,568
-
53,380
9,003
10,335
18.1
18.7
34.1
41.8
46.0
37.5
9.9
8.5
23.9
24.8
6.1
5.3
HUL
Neutral
885
-
191,487
33,299
35,497
17.1
17.1
18.9
20.0
46.8
44.2
41.0
35.7
87.6
80.8
5.6
5.2
ITC
Accumulate
355
380
285,354
36,837
39,726
38.8
38.7
12.2
13.5
29.0
26.3
8.1
7.1
27.8
26.9
7.2
6.7
Marico
Neutral
253
-
32,661
6,151
6,966
17.2
17.3
5.4
6.4
46.9
39.6
14.7
11.6
33.2
32.4
5.2
4.6
Nestle*
Neutral
6,279
-
60,543
9,393
10,507
22.2
22.3
106.8
121.8
58.8
51.6
20.7
18.6
34.8
36.7
6.2
5.5
Tata Global
Accumulate
120
137
7,586
8,635
9,072
9.8
9.9
5.8
7.2
20.7
16.7
1.8
1.8
6.8
7.4
0.9
0.9
Procter & Gamble Hyg.
Buy
6,240
7,369
20,256
2,588
2,939
23.3
23.2
130.2
146.2
47.9
42.7
95.6
91.6
27.6
25.3
7.4
6.4
IT
HCL Tech^
Buy
722
1,000
101,821
37,061
30,781
21.5
20.5
51.4
40.0
14.0
18.0
3.6
2.6
20.1
20.3
2.5
2.6
Infosys
Accumulate
1,266
1,374
290,897
62,441
70,558
27.5
27.5
59.0
65.3
21.5
19.4
4.3
3.9
22.2
22.4
4.1
3.5
TCS
Accumulate
2,631
3,004
518,390
108,646
122,770
28.3
28.3
123.7
141.0
21.3
18.7
7.0
6.4
33.1
34.6
4.3
3.7
Tech Mahindra
Buy
550
700
53,332
26,494
30,347
16.3
17.0
32.2
37.5
17.1
14.7
3.7
3.2
21.7
21.8
1.8
1.5
Wipro
Buy
541
680
133,678
50,808
56,189
23.7
23.8
37.3
40.7
14.5
13.3
2.8
2.5
19.2
17.7
2.1
1.7
Media
D B Corp
Neutral
374
-
6,870
2,025
2,187
27.4
27.4
17.4
18.9
21.5
19.8
4.8
4.4
22.9
23.7
3.4
3.1
HT Media
Neutral
81
-
1,881
2,495
2,673
12.9
13.2
6.8
7.2
11.9
11.2
0.9
0.9
7.5
7.8
0.3
0.3
Jagran Prakashan
Buy
170
205
5,571
2,107
2,355
33.5
28.0
10.0
10.8
17.0
15.8
4.0
3.4
23.3
21.7
2.4
2.1
Sun TV Network
Neutral
363
-
14,317
2,510
2,763
71.8
71.5
21.9
24.8
16.6
14.6
3.9
3.6
22.8
24.3
5.2
4.7
Hindustan Media Vent.
Neutral
271
-
1,988
914
1,016
21.7
21.5
21.9
23.2
12.4
11.6
2.2
1.9
18.0
16.2
1.6
1.4
Metal
Coal India
Buy
309
380
195,144
76,167
84,130
19.9
22.3
22.4
25.8
13.8
12.0
5.0
4.8
35.5
41.0
1.9
1.7
Hind. Zinc
Neutral
168
-
70,985
14,641
14,026
50.4
50.4
17.7
16.0
9.5
10.5
1.5
1.3
16.2
13.2
2.5
2.3
Hindalco
Neutral
105
-
21,775
104,356
111,186
8.7
9.5
6.7
11.1
15.7
9.5
0.6
0.5
3.5
5.9
0.7
0.7
JSW Steel
Neutral
1,370
-
33,126
42,308
45,147
16.4
20.7
(10.3)
49.5
-
27.7
1.5
1.5
(1.0)
5.6
1.8
1.7
NMDC
Neutral
90
-
35,702
8,237
10,893
46.6
44.5
9.9
11.7
9.1
7.7
1.0
0.9
12.4
13.0
4.1
3.1
SAIL
Neutral
42
-
17,202
45,915
53,954
7.2
10.5
1.5
4.4
27.7
9.5
0.4
0.4
2.3
4.1
1.0
0.9
Vedanta
Neutral
105
-
31,026
71,445
81,910
26.2
26.2
12.9
19.2
8.1
5.5
0.6
0.5
7.2
8.9
0.9
0.7
Tata Steel
Neutral
339
-
32,890
126,760
137,307
8.9
11.3
6.4
23.1
53.2
14.7
1.1
1.0
2.0
7.1
0.8
0.8
June 6, 2016
20
Stock Watch | June 2016
Company Name
Reco
CMP
Target
Mkt Cap
Sales (` cr)
OPM (%)
EPS (`)
PER (x)
P/BV (x)
RoE (%)
EV/Sales (x)
(`)
Price (`)
(` cr)
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
Oil & Gas
Cairn India
Neutral
142
-
26,604
11,323
12,490
49.4
51.0
20.7
20.6
6.8
6.9
0.4
0.4
6.4
6.1
1.4
0.8
GAIL
Neutral
370
-
46,946
64,856
70,933
9.1
9.6
24.0
28.9
15.4
12.8
1.3
1.2
8.8
9.6
0.9
0.8
ONGC
Neutral
212
-
181,291
154,564
145,998
36.8
37.4
20.8
22.6
10.2
9.4
1.0
0.9
10.1
9.7
1.4
1.5
Petronet LNG
Neutral
270
-
20,213
29,691
31,188
5.8
6.2
12.8
13.4
21.1
20.1
3.1
2.8
15.8
14.8
0.8
0.7
Indian Oil Corp
Accumulate
424
455
102,945
359,607
402,760
5.9
6.1
42.5
48.7
10.0
8.7
1.3
1.2
14.1
14.3
0.4
0.3
Reliance Industries
Buy
958
1,150
310,499
304,775
344,392
12.6
13.4
91.3
102.6
10.5
9.3
1.2
1.1
11.8
12.0
0.9
0.8
Pharmaceuticals
Alembic Pharma
Neutral
555
-
10,467
3,274
3,802
26.9
19.4
35.0
28.7
15.9
19.3
7.0
5.3
55.6
31.2
3.2
2.7
Aurobindo Pharma
Accumulate
789
856
46,190
14,923
17,162
22.0
23.0
35.7
42.8
22.1
18.4
6.5
4.9
34.0
30.2
3.5
3.0
Aventis*
Accumulate
4,302
4,738
9,908
2,049
2,375
15.4
17.3
115.4
153.5
37.3
28.0
6.1
4.7
19.3
25.8
4.6
3.9
Cadila Healthcare
Buy
320
400
32,729
9,469
11,246
21.2
22.0
14.9
17.1
21.5
18.7
6.1
4.8
28.8
26.6
3.4
2.8
Cipla
Buy
465
605
37,365
13,979
16,447
20.2
18.6
25.7
27.5
18.1
16.9
2.9
2.5
17.6
16.1
2.7
2.2
Dr Reddy's
Accumulate
3,159
3,476
53,881
15,471
17,479
24.6
24.6
138.2
152.4
22.9
20.7
4.2
3.6
19.7
18.7
3.4
3.0
Dishman Pharma
Neutral
153
-
2,469
1,733
1,906
21.5
21.5
10.1
10.0
15.1
15.3
1.8
1.6
10.5
11.2
1.9
1.7
GSK Pharma*
Neutral
3,526
-
29,865
2,870
3,158
20.0
22.1
59.5
68.3
59.3
51.6
17.5
18.0
28.5
34.3
9.9
9.0
Indoco Remedies
Neutral
287
-
2,645
1,033
1,199
15.9
18.2
9.4
13.6
30.5
21.1
4.5
3.8
15.7
19.7
2.6
2.3
Ipca labs
Buy
417
750
5,263
3,363
3,909
12.9
18.6
13.4
28.0
31.1
14.9
2.2
1.9
7.4
14.0
1.9
1.6
Lupin
Buy
1,449
1,809
65,308
13,702
15,912
23.7
26.4
50.5
58.1
28.7
24.9
5.9
4.9
22.9
21.4
5.2
4.1
Sun Pharma
Buy
738
950
177,674
28,163
32,610
25.8
30.7
17.4
26.9
42.4
27.4
4.0
3.5
13.0
16.6
5.8
4.8
Power
Tata Power
Neutral
74
-
19,987
35,923
37,402
22.6
22.8
4.1
5.2
18.2
14.3
1.4
1.3
7.5
9.3
1.5
1.4
NTPC
Neutral
148
-
121,868
87,271
99,297
23.4
23.5
11.7
13.3
12.6
11.1
1.4
1.3
11.5
12.2
2.4
2.1
Power Grid
Accumulate
150
170
78,657
20,702
23,361
86.7
86.4
12.1
13.2
12.4
11.4
1.8
1.6
15.6
15.1
8.7
8.1
Real Estate
MLIFE
Buy
437
554
1,792
826
1,011
20.1
21.9
22.7
30.7
19.2
14.2
1.1
1.1
6.0
7.4
4.1
3.1
Telecom
Bharti Airtel
Neutral
358
-
143,187
101,748
109,191
32.1
31.7
12.0
12.5
29.9
28.7
2.1
1.9
6.9
6.7
2.0
1.8
Idea Cellular
Neutral
107
-
38,364
34,282
36,941
32.0
31.5
5.9
6.2
18.1
17.2
1.7
1.5
9.9
9.3
1.7
1.6
Others
Abbott India
Neutral
4,540
-
9,648
2,715
3,153
14.5
14.1
134.3
152.2
33.8
29.8
8.4
7.0
27.4
25.6
3.3
2.8
Bajaj Electricals
Buy
222
268
2,243
4,612
5,351
5.6
5.7
9.5
12.4
23.5
18.0
2.6
2.3
14.4
16.1
0.5
0.4
Banco Products (India)
Neutral
139
-
991
1,208
1,353
10.9
12.3
10.8
14.5
12.9
9.6
1.5
1.3
11.9
14.5
0.8
0.7
Coffee Day Enterp.
Neutral
256
-
5,283
2,692
2,964
17.0
18.6
-
4.7
-
54.1
3.1
3.0
0.1
5.5
2.4
2.2
Competent Automobiles Neutral
139
-
86
1,040
1,137
3.2
3.1
25.7
28.0
5.4
5.0
0.8
0.7
15.0
14.3
0.1
0.1
Elecon Engineering
Neutral
58
-
632
1,359
1,482
10.3
13.6
0.8
3.9
72.3
14.9
1.2
1.1
1.6
7.8
0.8
0.7
Finolex Cables
Neutral
348
-
5,327
2,520
2,883
12.2
12.0
12.7
14.2
27.5
24.5
3.7
3.3
13.6
13.5
1.9
1.6
Garware Wall Ropes
Buy
358
460
783
828
898
11.2
10.3
28.3
29.0
12.6
12.3
2.1
1.8
16.8
14.9
0.9
0.8
Goodyear India*
Accumulate
509
582
1,174
1,800
1,600
11.7
11.5
58.7
52.9
8.7
9.6
1.9
1.7
24.6
18.7
0.4
0.4
June 6, 2016
21
Stock Watch | June 2016
Company Name
Reco
CMP
Target
Mkt Cap
Sales (` cr)
OPM (%)
EPS (`)
PER (x)
P/BV (x)
RoE (%)
EV/Sales (x)
(`)
Price (`)
(` cr)
FY16E
FY17E
FY16E
FY17E FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
FY16E
FY17E
Hitachi
Neutral
1,274
-
3,464
1,779
2,081
7.8
8.8
21.8
33.4
58.4
38.1
9.4
7.6
17.4
22.1
2.0
1.7
HSIL
Accumulate
270
310
1,951
2,123
2,384
16.1
16.5
15.0
18.9
17.9
14.3
1.4
1.3
8.0
9.4
1.3
1.1
Interglobe Aviation
Neutral
993
-
35,773
17,022
21,122
20.7
14.5
63.9
53.7
15.5
18.5
23.3
19.1
149.9
103.2
2.1
1.7
Jyothy Laboratories
Neutral
292
-
5,296
1,620
1,847
11.5
11.5
7.3
8.5
40.1
34.5
5.2
4.8
13.3
14.4
3.1
2.7
Kirloskar Engines India
Neutral
254
-
3,674
2,403
2,554
8.6
9.9
9.2
10.5
27.7
24.2
2.6
2.5
9.7
10.7
1.2
1.1
Linc Pen & Plastics
Accumulate
205
235
304
344
382
9.1
9.1
12.4
13.1
16.6
15.7
3.0
2.6
18.0
16.7
1.0
0.9
M M Forgings
Buy
444
546
536
511
615
21.7
21.6
43.1
55.8
10.3
8.0
1.9
1.5
19.9
21.2
1.3
0.9
Manpasand Bever.
Neutral
545
-
2,729
540
836
19.9
19.6
10.2
16.9
53.2
32.3
4.3
3.9
8.1
12.0
4.7
3.0
MRF
Buy
33,414
45,575
14,171
20,316
14,488
21.4
21.1
5,488.0
3,797.9
6.1
8.8
2.1
1.7
41.1
21.2
0.6
0.9
MT Educare
Neutral
179
-
712
286
366
18.3
17.7
7.7
9.4
23.1
19.1
4.9
4.3
20.2
21.1
2.4
1.8
Narayana Hrudaya
Neutral
310
-
6,337
1,603
1,873
10.9
11.5
1.0
2.6
325.5
117.2
7.8
7.2
2.4
6.1
4.1
3.5
Navkar Corporation
Buy
199
265
2,847
347
408
43.2
42.9
6.7
6.8
29.9
29.5
2.2
2.0
7.3
6.9
8.7
7.9
Navneet Education
Neutral
86
-
2,046
998
1,062
24.1
24.0
5.8
6.1
14.9
14.1
3.3
2.9
22.0
20.5
2.1
2.0
Nilkamal
Neutral
1,204
-
1,797
1,871
2,031
10.7
10.5
63.2
69.8
19.1
17.3
3.1
2.7
17.6
16.6
1.0
0.9
Page Industries
Neutral
14,099
-
15,726
1,929
2,450
19.8
20.1
229.9
299.0
61.3
47.2
27.1
18.8
52.1
47.0
8.2
6.4
Quick Heal
Neutral
239
-
1,674
339
408
27.8
27.3
7.1
7.7
33.8
30.9
2.9
2.9
8.5
9.3
3.8
3.2
Radico Khaitan
Buy
89
125
1,181
1,543
1,659
12.6
13.0
5.8
6.3
15.4
14.0
1.3
1.2
8.5
8.6
1.2
1.1
Relaxo Footwears
Neutral
437
-
5,249
1,767
2,152
12.3
12.5
19.2
25.1
22.7
17.4
5.6
4.3
27.7
27.8
3.0
2.5
S H Kelkar & Co.
Neutral
211
-
3,051
928
1,036
15.3
15.1
4.9
6.1
42.7
34.6
4.0
3.7
9.4
10.7
3.2
2.8
Siyaram Silk Mills
Buy
1,025
1,347
961
1,619
1,799
11.6
11.6
93.5
104.9
11.0
9.8
1.9
1.6
17.1
16.4
0.8
0.7
Styrolution ABS India*
Neutral
602
-
1,058
1,271
1,440
8.6
9.2
32.0
41.1
18.8
14.7
1.9
1.7
10.7
12.4
0.8
0.7
Surya Roshni
Buy
155
201
681
2,992
3,223
8.1
8.4
14.7
18.3
10.6
8.5
1.0
0.9
9.7
11.0
0.5
0.5
Team Lease Serv.
Neutral
912
-
1,559
2,565
3,229
1.3
1.5
15.2
22.8
60.1
40.0
4.8
4.3
8.0
10.7
0.5
0.4
The Byke Hospitality
Neutral
170
-
681
222
287
20.5
20.5
5.6
7.6
30.1
22.5
5.7
4.7
18.8
20.7
3.1
2.4
Transport Corp. of India
Neutral
302
-
2,298
2,830
3,350
8.8
9.0
14.4
18.3
21.0
16.5
3.2
2.8
15.4
17.1
0.9
0.8
TVS Srichakra
Buy
2,315
2,932
1,773
2,035
2,252
15.9
15.3
248.6
268.1
9.3
8.6
4.1
2.9
43.6
33.9
0.9
0.8
UFO Moviez
Neutral
534
-
1,473
558
619
32.0
33.2
22.5
30.0
23.7
17.8
2.8
2.5
12.0
13.8
2.5
2.1
Visaka Industries
Buy
138
162
219
1,020
1,120
8.7
9.1
13.9
20.1
9.9
6.8
0.6
0.6
6.4
8.7
0.4
0.4
VRL Logistics
Neutral
276
-
2,519
1,725
1,902
16.5
16.7
12.2
14.6
22.7
18.9
4.7
4.2
20.8
21.9
1.6
1.4
Wonderla Holidays
Neutral
384
-
2,169
206
308
44.0
43.6
9.0
12.9
42.7
29.8
5.8
5.3
13.7
17.8
10.4
6.9
Source: Company, Angel Research, Note: *December year end; #September year end;
&October year end; ^June year end; Price as of June 3, 2016
June 6, 2016
22
Top Picks Report | June 2016
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 of India 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 including its relatives/analyst do not hold any financial interest/beneficial
ownership of more than 1% in the company covered by Analyst. 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. Angel/analyst
has not served as an officer, director or employee of company covered by Analyst and has not been engaged in market making activity
of the company covered by Analyst.
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.
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.
Note: Please refer to the important ‘Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the
latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may
have investment positions in the stocks recommended in this report.
June 6, 2016
23