Angel Top Picks - September 2017

After the geopolitical tensions have cooled off, Indian markets have regained

Top Picks

the growth momentum with the both Sensex and Nifty trading near its peak

Company

CMP (`)

TP (`)

levels. Macros have continued to improve while foreign trade is showing

Banking/NBFC

signs of recovery. Indian markets are currently trading slightly at premium to

Dewan Housing

549

610

its 10 year average, however with double digit corporate earnings growth

GIC Housing Finance

534

655

and surging domestic equity inflows, market is expected continue its upward

Karur Vysa Bank

147

180

trajectory.

Consumption

Domestic inflows continue to remain strong: With another cut in the repo rate,

Asian Granito

448

493

fixed income has continued to lose sheen compared to the equities. The domestic

Blue Star

792

850

mutual fund inflows for August-17 were at `20,935cr while the same for the April-

Siyaram Silk Mills

2,267

2,500

August 2017 period is at `61,421cr vs. `18,490cr during same period last fiscal.

Media/Automobiles

The domestic inflows have continued to rise faster than the foreign inflows in FY18

Maruti Suzuki

8,145

8,658

too. With the inflation remaining soft, repo rates could get slashed further meaning

Music Broadcast

385

434

that equities are expected to remain an attractive asset class and hence domestic

TV Today

271

344

MF inflows are expected to rise higher.

Real Estate/Infra/Logistics/Power

KEI Industries

325

371

Foreign trade shows signs of recovery: India’s exports remained sluggish for the

Navkar Corp.

194

265

period of FY13-FY16; however since FY17, exports are showing signs of recovery.

Pharma

In FY17, our exports grew by 5.2% YoY to $276bn while for 4MFY18; exports grew

Alkem Labs

1,808

2,161

by 7.9% YoY to $94.6bn indicating that growth in exports has been sustainable.

Source: Angel Research;

Due to the rupee depreciation, this growth is 4.8% YoY in rupee terms. Imports too

Note: CMP as of September 11, 2017

had been sluggish for last many years however there are signs of recovery with

imports, in dollar terms, going up by 28.3% YoY in 4MFY18 and by 23.4% in

rupee terms. We believe this is a sign of recovery in the foreign trade with imports

indicating resilience in the consumption sector and exports indicating the

improving global demand.

Nifty scales 10000 level again: Indian equities have continued to remain buoyant

in FY18 with 8% returns so far. In August -17, markets turned slightly volatile due

to local and global geopolitical issues, however with the tensions easing, the

markets have come out of the hangover and have regained the peaks established

a few days back (Sensex 32,000 and Nifty 10,000). Domestic equities are now

valued at 18.5x its 1year forward earnings which is about 7% premium to its ten

year average. However double digit earnings growth and higher domestic

inflows aided by lower interest rate regime continue to support the valuations.

We believe that upward trajectory of the domestic markets will be maintained. We

like stocks like Maruti Suzuki, Asian Granito and Blue Star from consumption

sector as well as Music Broadcast (Media), Karur Vysa Bank (Banking),

Navkar Corp, KEI Industries and Siyaram Silk Mills from other sectors. We

add GIC Housing Finance in the Top Picks Portfolio over its strong earning

visibility and NIM improvement.

Please refer to important disclosures at the end of this report

Top Picks Report | September 2017

Stock Info

Dewan Housing

CMP

549

 Loan growth to remain strong going ahead: Backed by healthy capital

610

adequacy and increasing demand for home loans DHFL’s loan book is

Upside

10.9%

expected to report 23% loan growth over next two three years.

Sector

Financials

 Strong Capital adequacy lends visibility for growth: DHFL sold 50% stake held

Market Cap (` cr)

17,498

by it in DFHFL Pramerica Life Insurance Co Ltd which added `1,969 cr to its

Beta

1.9

net worth and increases its CAR by 400 bps, to 19.3% which should fuel

52 Week High / Low

563 / 214

growth for next 2-3 years.

 Asset quality has been strong: Strong NIM on the back of lower cost of funds

3 year-Chart

and lower credit cost will ensure healthy return ratios for the company. Despite

600

strong growth the company has maintained stable asset quality and we expect

500

the trend to continue.

400

 Outlook: We expect the company’s loan growth to remain 23% over next two

300

years and earnings growth is likely to be more than 28%.The stock currently

trades at 1.8x FY2018E ABV. We maintain an Accumulate rating on the stock,

200

with a target price of `610.

100

Key Financials

Y/E

Op. Inc NIM

PAT

EPS

ABV ROA ROE P/E P/ABV

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

Source: Company, Angel Research

FY2018E

2,279

2.4

1,171

37.4

268

1.3

13.8

12.2

2.1

FY2019E

2,927

2.7

1,556

49.7

305

1.5

16.2

9.2

1.8

Source: Company, Angel Research

Stock Info

Karur Vysa Bank

CMP

147

 Loan growth to pick up from FY18 onwards: KVB had a fairly strong loan

180

CAGR of 14.9% over FY11-17.However, FY17 was year of consolidation and

Upside

22.4%

loan book grew by only 4.7%. We expect loan growth to pick up to 11%

Sector

Banking

over FY17-19. Deposit growth is expected at 9% during the period.

Market Cap (` cr)

8,256

 Asset quality likely to stabilize going ahead: KVB’s slippages remained high

during FY17 and hence GNPAs % went up to 3.58% vs 1.3%. However, large

Beta

1.4

part of the troubled accounts has been classified as NPAs and hence gradually

52 Week High / Low

153 / 80

we expect the asset quality to improve. While in Q1FY18 we saw some

pressure on asset quality, it still remained fairly under control.

3 year-Chart

 NIM likely to see further improvement: There were 25 bps improvements in

160

NIM during FY17, with share of CASA growing and cost of fund coming

140

down NIM is expected to improve further going ahead.

120

100

 Outlook: We expect KVB to post a strong loan book & earnings CAGR of

11%& 22% over FY2017-19E. The stock currently trades at 1.7x FY2019E ABV.

We have a BUY rating on the stock, with a target price of `180.

Key Financials

Y/E

Op. Inc NIM

PAT

EPS

ABV ROA ROE P/E P/ABV

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2018E

3,289

3.7

660

10.8

75.0

1.0

12.5

12.9

2.0

Source: Company, Angel Research

FY2019E

3,630

3.9

858

14.1

85.7

1.2

14.7

9.9

1.7

Source: Company, Angel Research

September 12, 2017

Top Picks Report | September 2017

Asian Granito

Stock Info

CMP

448

 AGIL’s current, vitrified sales (35%) are lower as compared to its peers like

Somany Ceramics (47%) and Kajaria Ceramics (61%). Recently, AGIL has

493

launched various products in premium segment. Going forward, we expect

Upside

10%

AGIL’s profit margin to improve due to increase in focus for higher vitrified

Sector

Cons. Durable

product sales, which is a high margin business.

Market Cap (` cr)

1,368

 AGIL is continuously putting efforts to increase the B2C sales from the current

Beta

1.9

level (35-36% in FY17). It is expected to reach up to 50% in next 2-3 years on

52 Week High / Low

471 / 175

the back of various initiatives taken by AGIL to increase direct interaction with

customers like strengthening distribution network, participation in key trade

exhibition, etc.

3 year-Chart

 In July FY2016, AGIL acquired Artistique Ceramic which has a better margin

500

profile. Going forward, we expect the company to improve its operating

400

margin from 7.5% in FY16 (excluding merger) to 12-12.5% in coming

300

financial year. Artisique Ceramics has a contract with RAS GAS to supply

200

quality natural gas at a discounted rate of 50% to current market rate, which

would reduce the overall power & fuel cost of the company.

100

 We expect AGIL to report a net revenue CAGR of ~8.5% to ~`1,286cr and

net profit CAGR of ~23% to `59cr over FY2017-19E. We have an accumulate

rating on the stock.

Key Financials

Source: Company, Angel Research

Y/E

Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2018E

1,169

12.5

16.0

10.7

28.0

3.0

11.1

1.4

FY2019E

1,286

12.5

19.7

10.7

22.7

2.7

9.8

1.2

Source: Company, Angel Research

Blue Star

Stock Info

 BSL is one of the largest air-conditioning companies in India. With a mere

CMP

792

3% penetration level of ACs vs 25% in China, the overall outlook for the room

850

air-conditioner (RAC) market in India is favourable.

Upside

 BSL’s RAC business has been outgrowing the industry by ~10% points over the

Sector

Cons. Durable

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

Market Cap (` cr)

7,588

Products Division (CPD)'s share in overall revenues increasing from~23% in

Beta

0.8

FY2010 to ~42% in FY2016 (expected to improve to ~47% in FY2018E). With

52 Week High / Low

813 / 435

strong brand equity and higher share in split ACs, we expect the CPD to

continue to drive growth.

3 year-Chart

 Aided by increasing contribution from the CPD, we expect the overall top-line

900

to post a revenue CAGR of ~16% over FY2016-18E and margins to improve

800

from 5.3% in FY2015 to 7.3% in FY2018E. We recommend an accumulate

700

rating on the stock.

600

500

Key Financials

400

300

Y/E

Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

200

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

100

FY2017

4,283

5.9

141

14.9

20.4

44.3

9.4

26.3

1.5

FY2018E

5,077

7.3

211

22.1

26.4

29.8

8.6

19.9

1.3

Source: Company, Angel Research

September 12, 2017

Top Picks Report | September 2017

Stock Info

Siyaram Silk Mills

CMP

2,267

 SSML has strong brands which cater to premium as well as popular mass

2,500

segments of the market. Further, SSML entered the ladies' salwar kameez and

Upside

10%

ethnic wear segment. Going forward, we believe that the company would be able to

Sector

Textile

leverage its brand equity and continue to post strong performance.

Market Cap (` cr)

2,210

 The company has a nationwide network of about 1,600 dealers and business

partners. It has a retail network of 160 stores and plans to add another

Beta

0.9

300-350 stores going forward. Further, the company's brands are sold across

52 Week High / Low

2,499/1,135

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

~`1,981cr and adj.net profit CAGR of ~16% to `123cr over FY2017-19E on

3,000

back of market leadership in blended fabrics, strong brand building, wide

2,500

distribution channel, strong presence in tier II and tier III cities and emphasis

2,000

on latest designs and affordable pricing points. At the current market price,

1,500

SSML trades at an inexpensive valuation. We have an accumulate rating on

the stock.

1,000

500

Key Financials

Y/E

Sales

OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2018E

1,769

12.7

106

113.1

15.4

20.1

3.1

10.8

1.4

Source: Company, Angel Research

FY2019E

1,981

12.7

123

131.1

15.5

17.3

2.7

9.4

1.2

Source: Company, Angel Research

Stock Info

Maruti Suzuki

CMP

8,145

 The Automobile sector is expected to benefit from the GST implementation.

8,658

The sector has seen a pick up in the volumes in FY17 as there were several

Upside

6.3 %

positive factors like normal monsoon and lower interest rates.

Sector

Automobiles

 Maruti Suzuki continues to hold ~50% market share in the passenger vehicles.

Market Cap (` cr)

2,46,044

The launch of exciting models has helped the company to ride on the

premiumization wave that is happening in the country. In the last two years,

Beta

1.3

company has seen improvement in the business mix with the pie of the utility

52 Week High / Low

8,200/4,769

vehicles growing from ~4% to current 15%. With the 3-4 months of waiting

period on these models, strong demand and GST led price decrease; we

3 year-Chart

believe that this pie is expected to grow to ~20% in FY19E.

9,000

 Due to the favorable business mix, company has also been seeing

8,000

7,000

improvement in the margins. Company has already moved from ~11-12%

6,000

EBITDA margin range to current ~14-15% margin ranges. Together with

5,000

higher operating leverage at Gujarat plant and improving business mix, we

4,000

3,000

believe that company has further room to improve its margins. We have an

2,000

accumulate rating on the stock.

1,000

Key Financials

Y/E

Sales

OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

Source: Company, Angel Research

FY2018E

81,888

15.2

8,653

286.5

22.0

28.4

6.3

17.6

2.7

FY2019E

101,345

15.2

10,895 360.8

22.6

5.1

13.6

2.1

Source: Company, Angel Research

September 12, 2017

Top Picks Report | September 2017

Stock Info

TV Today Network

CMP

271

 TTNL enjoys a strong viewership ranking in the Hindi and English news

344

channel categories. The company’s Hindi news channel - Aaj Tak has

Upside

27%

maintained its market leadership position occupying the No.1 rank for several

Sector

Media

consecutive years in terms of viewership. Its English news channel - India

Today too has been continuously gaining viewership; it has now captured the

Market Cap (` cr)

1,615

No. 2 ranking from No. 4 earlier. Its other channels like Dilli Aaj Tak and Tez

Beta

0.7

are also popular among viewers.

52 Week High / Low

360 /248

 Out of the 7 radio stations, TTNL has sold off 4 (Jodhpur, Amritsar, Patiala

and Shimla) for `4cr. The remaining 3 stations are in the process of getting

3 year-Chart

sold off to ENIL but the sale will have to wait until concerns raised by the MIB

400

are resolved. Going forward, we expect them to be sold off and this would

350

prop up the company’s profitability.

300

250

 We expect TTNL to report a net revenue CAGR of ~9% to ~`727cr and net

200

profit CAGR of

~13% to

`121cr over FY2017-19E. We have a Buy

150

recommendation on the stock and target price of `344.

100

Key Financials

Y/E

Sales

OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2018E

667

23.1

111

18.6

15.6

14.6

2.3

6.9

2.0

Source: Company, Angel Research

FY2019E

727

23.2

121

20.1

17.3

13.5

2.3

5.9

1.8

Source: Company, Angel Research

Stock Info

Music Broadcast

CMP

385

 Radio Industry is protected by licenses for 15 years, thereby restricting the entry

434

of new players. This would support the existing companies to strengthen their

Upside

12.7%

position and maintain a healthy growth rate.

Sector

Media

 It has grabbed the Number 1 position in Mumbai, Bengaluru and Delhi in

Market Cap (` cr)

2,200

terms of number of listener. This is helping MBL to charge premium rate,

which resulting into higher EBITDA margin (33.6%) compare to 22% of ENIL.

Beta

0.4

52 Week High / Low

420/332.9

 MBL outperformed its closest peer with 18.4% CAGR in revenue over FY2013-

17 (ENIL reported 13.2% CAGR in revenue). On the profitability front too,

MBL, with 32.3% CAGR in PAT over FY2013-17, has performed much better

3 year-Chart

than ENIL (-5.2% CAGR in PAT). Moreover, Radio City posted a six year CAGR

390

380

of 12.1% v/s. 9.1% of industry owing to higher advertising volumes.

370

 Capex for 39 licenses have been done for the next 15 years, hence no heavy

360

incremental Capex requirement would emerge. Moreover, the maintenance

350

340

Capex would be as low as `5-10cr. This would leave sufficient cash flow to

330

distribute as dividend. We have a Buy recommendation on the stock and

320

target price of `434.

310

Key Financials

Y/E

Sales

OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

Source: Company, Angel Research

FY2018E

317

34.4

9.8

9.3

39.3

3.6

18.4

6.3

FY2019E

372

34.9

14.0

12.0

27.6

3.3

15.0

5.2

Source: Company, Angel Research

September 12, 2017

Top Picks Report | September 2017

Stock Info

KEI Industries

CMP

325

 KEI’s current order book (OB) stands at `3,233cr (segmental break-up:

371

`2,154cr in EPC, `667cr in Cable, `200cr in EHV, `49cr in Substation, rest in

Upside

14%

EPC L1 business). Its OB grew by ~28% in the last 3 years due to strong order

inflows from State Electricity Boards, Power grid, etc.

Sector

Real Estate

Market Cap (` cr)

2,473

 KEI’s consistent effort to increase its retail business from 30-32% of revenue in

FY17 to 40-45% of revenue in the next 2-3 years on the back of strengthening

Beta

0.9

distribution network (currently 926 which is expect to increase `1,500 by FY19)

52 Week High / Low

338 / 99

and higher ad spend (increased from `2cr in FY13 to `7cr in FY16 and

expected to spend).

3 year-Chart

 KEI’s export (FY17 - 8-10% of revenue) is expected to reach a level of ~14-

350

15% in next two years with higher order execution from current OB of

300

~`180cr and participation in various international tenders worth `500cr. We

250

expect a strong ~26% growth CAGR over FY2017-19 in exports. We expect

200

KEI to report net revenue CAGR of ~14% to ~`3,392cr and net profit CAGR

150

of ~13% to `125cr over FY2017-19E. Hence we have a Buy rating on the

100

stock.

Key Financials

Y/E

Sales

OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

Source: Company, Angel Research

FY2018E

3,001

10.0

100

13.0

18.2

25.0

4.5

10.1

1.0

FY2018E

3,392

10.0

125

16.1

18.7

20.2

3.8

8.9

0.9

Source: Company, Angel Research

Stock Info

GIC Housing Finance Ltd

CMP

534

 Backed by the new management, GICHF is aiming for 2.0x growth in the loan

655

book over the period of FY16-FY19E to `16,000cr. GICHF has healthy capital

Upside

23%

adequacy, and is seeing an increase in demand for home loans. GICHF’s

Sector

Financials

loan book is expected to report 24.3% loan growth over next two years.

Market Cap (` cr)

2,871

 GICHF is consistently decreasing bank borrowing and increasing high yield

Beta

1.7

loan book which is expected to boost its Net Interest Margin. The share of

bank borrowing was 75% in FY15, which fell to 55% in FY17. In our opinion,

52 Week High / Low

623 /251

the impetus on lower bank borrowings and increasing high yield loan book is

likely to result in 17bps NIM over FY16-FY19E.

3 year-Chart

 GICHF’s asset quality is on the higher side compared to other HFCs (As on

600

FY17 GNPA-2.3% and NPA-0.3%). This is primarily due to GICHF has not

500

written off any bad asset and has not sold any bad assets to ARC. New

400

Management is expediting asset quality improvement.

300

 We expect the GICHF’s loan growth to grow at a CAGR of 24.3% over next

200

two years and RoA/RoE to improve from 1.7%/19.0% in FY17 to 2.0%/23.0%

100

in FY19E.The stock is currently trading at 2.4x FY2019E ABV. We have a Buy

rating on the stock, with a target price of `655.

Key Financials

Y/E

Op. Inc NIM

PAT EPS ABV ROA ROE P/E P/ABV

Source: Company, Angel Research

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2018E

376

3.6

180

184

1.7

2.9

FY2019E

477

3.7

214

218

1.9

2.4

Source: Company, Angel Research

September 12, 2017

Top Picks Report | September 2017

Stock Info

Navkar Corp.

CMP

194

 NCL is one of the largest and one of the three CFS at JNPT with rail

265

connectivity, helping it garner high market share at the port. NCL is in a massive

Upside

37%

expansion mode where it is increasing its capacity by 234% to 1,036,889 TEUs

Sector

Logistics

at JNPT and coming up with an ICD at Vapi (with Logistics Park).

Market Cap (` cr)

2,774

 The ICD with rail link should benefit from first mover advantage in a region

Beta

0.8

that has huge market potential and accounts for ~27% of volumes at JNPT.

52 Week High / Low

247 / 155

The ICD should be able to capture the EXIM volumes from the region through

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

250

volumes will now head straight to the Vapi ICD; thus the company can now

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

100

utilizations at both JNPT and Vapi ICD. We have a Buy rating on the stock.

Key Financials

Y/E

Sales

OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2018E

561

42.3

164

11.5

10.5

16.9

1.8

13.5

5.6

Source: Company, Angel Research

FY2019E

617

42.3

181

12.7

10.4

15.3

1.6

11.7

4.9

Source: Company, Angel Research

Stock Info

Alkem Leboratories

CMP

1,808

 Alkem is 5^th largest pharma company is the domestic market and also has

2,161

presence in US. It derives 73% of its revenues come from the Indian markets

Upside

19.5%

while rest come from the other countries. Alkem has leadership position in the

domestic anti infective segment and it is ranked #3 in Gastro-Intestinal and

Sector

Pharmaceutical

Pain/Analgesics segments. Company holds ~3.6% and ~7.9% market share

Market Cap (` cr)

21,621

in the formulations and overall prescriptions in the country.

Beta

0.9

 In the domestic market, company operates in acute and chronic segments. It is

52 Week High / Low

2,238 /1,400

a prominent player in acute segment has forayed in chronic segment from

which it expects faster growth. Alkem has been outperforming the domestic

3 year-Chart

industry growth which is likely to continue. Company is focusing on

2,500

monetization of its pipeline (91 ANDAs) in the US with annually ~7-8 ANDAs

launches growing the US revenues by ~26% growth rate from FY17-FY19E.

2,000

 Overall outlook remains strong with 15.8% CAGR in the topline and 15.4%

1,500

CAGR in the bottom-line. We have Buy rating on the stock.

1,000

Key Financials

500

Y/E

Sales OPM

PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2018E

6,901

18.4

1,016

85.0

20.2

21.3

4.3

17.0

3.1

FY2019E

7,850

19.1

1,202

100.5

20.1

18.0

3.6

14.3

2.7

Source: Company, Angel Research

September 12, 2017

Top Picks Report | September 2017

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

5.7

10.0

6.0

9.1

8.8

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

2.8

7.0

2.6

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: 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

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

September 12, 2017

Top Picks Report | September 2017

Exhibit 11: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

73,079

7.6

16.4

22.7

Russia

Micex

2,033

2.9

7.9

0.6

India

Nifty

9,935

(1.2)

2.8

12.8

China

Shanghai Composite

3,365

3.6

7.2

10.0

South Africa

Top 40

49,274

(0.6)

7.7

5.3

Mexico

Mexbol

50,084

(2.3)

1.9

7.8

Indonesia

LQ45

976

1.0

2.0

3.8

Malaysia

KLCI

1,780

0.3

0.2

5.8

Thailand

SET 50

1,046

4.4

5.9

8.5

USA

Dow Jones

21,798

(1.3)

2.9

20.5

FTSE

7,378

(2.2)

(2.0)

10.1

Japan

Nikkei

19,275

(3.6)

(3.2)

13.9

Germany

DAX

12,304

1.2

(3.0)

18.6

France

CAC

5,113

(0.6)

(2.4)

18.0

Source: Bloomberg, Angel Research

September 12, 2017

Top Picks Report

September 12, 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

222

209

4,308

1,873

2,099

15.0

9.5

10.5

23.3

21.1

3.5

3.2

15.8

16.0

2.2

2.0

United Phosphorus

Neutral

812

41,248

18,922

21,949

18.0

18.5

36.2

45.6

22.4

17.8

4.7

3.9

22.7

23.8

2.3

2.0

Auto & Auto Ancillary

Ashok Leyland

Accumulate

116

127

34,036

23,339

27,240

10.1

10.8

4.7

6.2

25.0

18.7

5.0

4.4

20.0

23.6

1.4

1.2

Bajaj Auto

Accumulate

2,930

3,151

84,793

23,936

27,955

19.5

20.1

142.7

167.3

20.5

17.5

4.5

4.0

21.8

22.8

3.1

2.6

Bharat Forge

Neutral

1,178

27,413

7,637

8,755

21.7

23.2

36.1

47.3

32.6

24.9

5.9

5.0

18.5

20.8

3.4

2.9

Eicher Motors

Neutral

32,467

88,383

19,043

22,837

19.5

19.9

835.4

1,019.0

38.9

31.9

14.5

11.2

40.9

37.8

4.5

3.7

Gabriel India

Neutral

209

3,003

1,782

2,033

9.7

10.2

7.1

8.9

29.4

23.6

5.9

5.0

21.0

22.2

1.6

1.4

Hero Motocorp

Neutral

3,946

78,797

32,239

36,878

16.0

15.6

184.4

206.5

21.4

19.1

6.7

5.9

31.3

30.7

2.2

1.9

Jamna Auto Industries Neutral

252

2,009

1,441

1,662

14.4

14.8

13.9

17.6

18.1

14.3

5.0

4.0

30.0

31.0

1.4

1.2

Mahindra and Mahindra Neutral

1,281

79,531

46,971

53,816

13.6

14.0

67.7

79.8

18.9

16.1

2.7

2.4

15.0

15.9

1.6

1.3

Maruti

Accumulate

8,145

8658

246,044

81,825

101,245

15.0

283.5

356.0

28.7

22.9

6.3

5.1

21.9

22.4

2.7

2.1

Minda Industries

Neutral

885

7,649

4,328

5,084

11.0

11.9

27.3

36.4

32.5

24.3

6.9

5.4

23.1

25.6

1.8

1.6

Motherson Sumi

Neutral

333

70,071

55,937

64,445

10.8

11.4

16.9

21.1

19.7

15.8

4.4

4.5

25.2

25.4

1.3

1.1

Tata Motors

Neutral

375

108,391

303,167

343,649

11.8

13.8

33.1

54.7

11.3

6.9

1.9

1.5

16.9

23.0

0.4

0.3

TVS Motor

Neutral

639

30,372

13,992

16,216

9.0

9.4

17.1

20.3

37.5

31.5

10.0

7.7

29.7

27.7

2.1

1.8

Amara Raja Batteries

Accumulate

785

858

13,402

6,140

7,122

14.3

15.6

29.3

39.0

26.8

20.1

4.6

3.8

17.1

19.0

2.2

1.9

Exide Industries

Neutral

221

18,819

8,689

9,854

15.1

15.2

9.7

11.0

22.9

20.1

4.1

3.6

15.7

16.1

1.9

1.7

Apollo Tyres

Neutral

256

13,046

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

1,751

7,083

6,661

7,717

11.1

14.2

116.2

178.2

15.1

9.8

2.6

2.2

15.2

21.3

1.2

1.0

JK Tyres

Neutral

148

3,346

8,318

9,239

16.2

16.4

21.0

27.5

7.0

5.4

1.4

1.1

19.1

20.4

0.9

0.7

Swaraj Engines

Neutral

1,996

2,479

788

889

16.4

16.5

71.6

81.0

27.9

24.7

8.0

7.5

29.6

31.0

2.8

2.4

Subros

Neutral

244

1,461

1,855

2,135

11.6

11.8

10.3

14.7

23.8

16.6

3.6

3.1

15.8

19.1

1.0

0.9

Capital Goods

BEML

Neutral

1,869

7,782

4,286

5,194

7.1

8.2

42.9

58.1

43.6

32.2

3.6

3.2

7.6

8.7

1.9

1.5

Bharat Electronics

Neutral

192

42,841

10,258

12,470

19.6

19.5

7.3

8.6

26.3

22.3

0.5

20.4

21.9

3.7

3.0

Voltas

Neutral

535

17,709

6,778

8,004

9.6

11.0

17.1

22.4

31.3

23.9

7.5

6.5

17.7

19.8

2.3

1.9

BHEL

Neutral

131

31,953

33,200

39,167

6.8

9.5

6.2

11.2

21.1

11.7

1.0

0.9

4.6

8.0

0.5

0.4

Blue Star

Neutral

792

7,584

5,101

5,997

6.0

7.0

17.9

26.6

44.3

29.8

9.4

8.6

21.9

29.0

1.5

1.3

CG Power and Industrial

Neutral

5,462

6,555

7,292

7.5

0.8

8,715.0

108.9

1.4

0.1

1.2

0.9

0.8

Solutions

Greaves Cotton

Neutral

148

3,620

1,778

1,993

14.7

15.1

8.1

9.1

18.3

16.3

4.1

3.8

21.8

23.6

1.8

1.6

www.angelbroking.com

Top Picks Report

September 12, 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

315

8,109

9,779

11,113

9.4

9.8

14.2

18.2

22.2

17.3

4.3

3.5

21.1

22.1

1.1

1.0

KEI Industries

Buy

326

371

2,537

3,001

3,391

10.0

13.0

16.1

25.1

20.2

4.6

3.8

18.2

18.7

1.0

0.9

Thermax

Neutral

880

10,480

4,125

4,747

10.3

10.8

26.7

31.5

32.9

27.9

3.7

3.4

11.2

12.0

2.3

2.0

VATech Wabag

Accumulate

616

681

3,365

3,867

4,126

9.6

10.0

34.9

39.8

17.7

15.5

2.9

2.5

17.7

17.5

0.9

0.8

Cement

ACC

Neutral

1,796

33,733

12,255

13,350

13.5

14.3

58.0

66.2

31.0

27.1

3.7

3.4

11.5

12.2

2.7

2.5

Ambuja Cements

Neutral

285

56,611

10,250

11,450

17.5

19.0

7.2

8.3

39.6

34.4

2.8

2.7

7.0

7.8

5.3

4.7

India Cements

Neutral

185

5,693

6,135

6,750

14.8

15.2

8.5

11.5

21.7

16.1

1.1

1.0

4.8

6.2

1.3

1.1

JK Cement

Neutral

1,024

7,157

4,150

4,775

19.2

20.0

49.0

63.5

20.9

16.1

3.3

2.8

17.0

18.5

2.2

1.8

J K Lakshmi Cement

Neutral

419

4,930

3,422

3,757

15.5

17.0

13.5

23.2

31.0

18.1

3.2

2.8

10.8

15.5

1.8

1.6

Orient Cement

Neutral

163

3,335

2,215

3,233

16.8

17.0

5.9

6.9

27.6

23.6

2.1

2.0

10.8

10.1

2.5

1.7

UltraTech Cement

Neutral

4,166

114,360

28,250

35,150

20.2

23.5

77.5

122.2

53.8

34.1

4.5

4.1

9.6

14.8

4.5

3.6

Construction

KNR Constructions

Neutral

201

2,821

1,846

2,203

14.5

12.1

13.7

16.6

14.7

0.9

0.8

17.5

16.7

1.6

1.3

Larsen & Toubro

Neutral

1,217

170,432

95,787

109,476

10.2

11.6

44.5

50.8

27.4

24.0

3.4

3.2

12.9

13.1

2.3

2.1

Gujarat Pipavav Port

Neutral

141

6,821

739

842

61.6

62.7

5.1

6.2

27.7

22.9

3.5

3.4

12.7

14.9

8.7

7.5

PNC Infratech

Accumulate

134

143

3,429

2,040

2,935

13.0

6.4

9.0

20.9

14.9

0.5

9.7

12.2

1.7

1.2

Simplex Infra

Neutral

437

2,164

6,012

6,619

11.6

11.7

21.1

31.0

20.8

14.1

1.4

1.3

6.5

8.6

0.9

0.8

Sadbhav Engineering

Neutral

284

4,880

3,823

4,426

10.7

10.8

10.3

11.8

27.6

24.1

3.3

2.9

10.1

10.5

1.6

1.4

NBCC

Neutral

208

18,761

9,099

12,706

6.4

7.3

9.6

28.6

21.8

1.3

1.0

27.5

30.5

1.9

1.4

MEP Infra

Neutral

104

1,697

2,403

2,910

18.3

16.8

2.4

6.1

44.4

17.2

16.8

11.4

35.2

55.8

1.9

1.5

SIPL

Neutral

3,473

2,060

2,390

46.8

47.7

(5.8)

(3.1)

3.7

4.2

(14.2)

(2.3)

6.4

6.0

Engineers India

Neutral

159

10,701

1,795

2,611

21.1

22.4

5.9

8.1

26.9

19.6

1.9

12.9

16.1

4.3

2.8

Financials

Axis Bank

Buy

493

580

118,249

32,558

35,843

3.5

3.2

27.8

41.0

17.7

12.0

1.9

1.7

11.4

14.9

Bank of Baroda

Neutral

138

31,705

22,533

26,079

2.4

12.0

20.9

11.5

6.6

0.7

6.6

11.0

Canara Bank

Neutral

334

19,941

17,925

20,235

2.0

2.1

18.5

36.5

18.1

9.2

0.7

0.6

3.4

6.2

Can Fin Homes

Neutral

2,842

7,565

586

741

3.5

107.8

141.0

26.4

20.2

5.8

4.7

24.1

25.6

Cholamandalam Inv. &

Neutral

1,178

18,405

2,826

3,307

6.3

53.7

64.6

22.0

18.2

3.7

3.2

18.3

18.9

Fin. Co.

Dewan Housing Finance Accumulate

548

610

17,192

2,676

3,383

2.4

2.7

37.4

49.7

14.7

11.0

1.9

1.7

13.8

16.2

Equitas Holdings

Buy

172

235

5,832

1,125

1,380

9.6

9.8

1.5

6.0

114.8

28.7

2.6

2.4

8.2

Federal Bank

Accumulate

113

125

21,947

4,896

5,930

2.8

3.1

5.4

7.6

21.0

14.9

1.8

1.6

8.5

11.0

www.angelbroking.com

Top Picks Report

September 12, 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

1,823

470,562

55,236

63,253

4.5

4.4

68.9

82.4

26.5

22.1

4.6

3.8

18.7

18.5

ICICI Bank

Accumulate

291

315

186,685

42,361

51,378

3.6

3.9

18.4

25.7

15.8

11.3

1.7

11.3

15.0

Karur Vysya Bank

Accumulate

147

160

8,865

3,289

3,630

3.7

3.9

10.8

14.1

13.5

10.4

1.6

1.5

12.5

14.7

LIC Housing Finance

Neutral

656

33,103

4,895

6,332

3.4

3.7

50.7

66.8

12.9

9.8

2.6

2.1

21.7

23.8

Punjab Natl.Bank

Neutral

138

29,409

23,708

25,758

2.1

5.9

16.4

23.5

8.4

0.7

3.0

8.3

RBL Bank

Neutral

536

20,321

2,309

2,888

2.6

2.5

16.4

19.1

32.7

28.1

4.1

3.7

13.3

13.8

Repco Home Finance

Buy

670

825

4,192

496

597

4.4

4.2

38.5

48.7

17.4

13.8

3.1

2.6

19.6

20.6

South Ind.Bank

Neutral

5,215

3,195

3,567

3.0

3.1

3.0

3.8

9.6

7.5

1.0

0.9

10.5

11.9

St Bk of India

Neutral

271

233,799

105,827

121,056

2.4

2.5

16.1

25.6

16.8

10.6

1.3

1.2

6.6

9.9

Union Bank

Neutral

133

9,672

14,650

16,225

2.3

23.1

32.5

5.8

4.1

0.4

7.1

9.2

Yes Bank

Neutral

1,842

84,314

11,088

13,138

3.0

2.9

84.0

99.3

21.9

18.5

3.4

2.9

16.3

16.8

FMCG

Akzo Nobel India

Neutral

1,824

8,748

3,164

3,607

13.8

13.7

58.6

67.9

31.1

26.9

7.6

6.7

24.5

25.1

2.6

2.3

Asian Paints

Neutral

1,237

118,638

17,603

20,615

18.6

2,128.9

2,543.3

0.6

0.5

12.3

10.3

28.0

28.9

6.5

5.5

Britannia

Neutral

4,299

51,619

9,690

11,278

14.8

15.4

84.0

101.0

51.2

42.6

18.7

14.8

40.6

39.0

5.3

4.5

Colgate

Neutral

1,149

31,250

4,420

5,074

24.9

25.3

28.6

32.8

40.2

35.0

15.9

12.8

43.8

40.5

6.8

5.9

Dabur India

Neutral

310

54,598

8,346

9,344

19.6

19.9

7.8

9.0

39.7

34.4

8.0

7.2

25.2

24.8

6.1

5.4

GlaxoSmith Con*

Neutral

5,106

21,473

5,072

5,760

18.2

18.4

176.3

199.2

29.0

25.6

6.1

5.6

21.2

21.7

3.6

3.1

Godrej Consumer

Neutral

929

63,323

10,171

11,682

20.8

21.5

21.7

27.1

42.8

34.3

9.6

8.3

22.3

23.4

6.3

5.5

HUL

Neutral

1,219

263,861

37,077

41,508

20.3

21.8

5,189.9

6,318.5

0.2

37.2

31.8

74.8

82.0

7.0

6.2

ITC

Neutral

274

333,497

44,588

49,853

37.0

37.3

9.6

11.0

28.5

24.9

7.0

6.7

25.1

27.3

7.0

6.2

Marico

Neutral

324

41,798

6,788

7,766

18.5

19.2

7.1

8.5

45.6

38.1

16.0

13.7

36.9

38.0

6.0

5.2

Nestle*

Neutral

7,294

70,322

10,083

11,182

20.0

20.9

119.7

141.3

60.9

51.6

214.8

196.3

36.7

39.8

6.7

5.9

Tata Global

Neutral

209

13,206

7,121

7,641

11.9

12.3

6.9

8.0

30.3

26.2

2.0

1.9

6.8

7.2

1.7

1.5

Procter & Gamble

Neutral

8,327

27,029

3,034

3,579

27.1

27.7

167.7

198.8

49.7

41.9

13.3

11.5

28.8

29.5

8.3

7.0

Hygiene

HCL Tech^

Buy

861

1,014

122,906

52,342

57,053

20.9

62.8

67.6

13.7

12.7

3.1

2.6

22.4

20.6

2.0

1.7

Infosys

Buy

879

1,179

201,800

73,963

80,619

26.0

64.4

69.3

13.6

12.7

2.7

2.5

19.7

19.6

2.2

1.9

TCS

Accumulate

2,464

2,651

485,425

127,403

138,870

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

440

533

42,964

31,015

33,496

15.0

35.6

38.1

12.4

11.6

2.1

2.0

17.0

16.3

1.2

1.0

Wipro

Neutral

301

146,609

58,536

61,858

20.3

18.2

19.1

16.6

15.8

2.6

2.2

14.6

13.4

2.4

2.3

www.angelbroking.com

Top Picks Report

September 12, 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

376

6,913

2,404

2,625

30.5

31.5

23.7

26.9

15.9

14.0

3.7

3.2

23.5

22.8

2.7

2.5

HT Media

Neutral

101

2,347

2,589

2,830

15.1

15.4

8.3

10.9

12.2

9.3

1.0

0.9

8.4

10.4

0.5

0.3

Jagran Prakashan

Buy

177

225

5,778

2,541

2,835

28.5

28.7

12.7

14.1

13.9

12.5

2.9

2.5

21.3

21.4

2.1

1.8

Sun TV Network

Neutral

828

32,642

3,238

3,789

51.9

55.1

30.9

38.0

26.8

21.8

7.6

6.7

30.0

31.0

9.6

8.1

Hindustan Media

Neutral

263

1,927

1,002

1,074

23.3

23.5

29.2

33.8

9.0

7.8

1.4

1.2

15.6

15.4

0.9

0.7

Ventures

TV Today Network

Buy

271

344

1,615

667

727

27.7

18.6

20.1

14.6

13.5

2.3

15.6

17.3

2.0

1.8

Music Broadcast Limited Accumulate

386

434

2,202

271

317

91.0

109.0

6.0

10.0

64.3

38.6

4.0

3.6

6.5

9.3

7.7

6.4

Metals & Mining

Coal India

Neutral

257

159,499

82,301

91,235

17.0

18.0

17.1

20.5

15.0

12.5

2.8

2.7

45.0

55.0

1.6

1.4

Hind. Zinc

Neutral

309

130,393

22,108

24,555

57.0

58.0

22.1

26.3

14.0

11.7

4.5

3.7

32.0

35.0

4.9

4.1

Hindalco

Neutral

250

56,079

102,350

105,355

13.5

14.5

21.5

24.5

11.6

10.2

1.6

1.4

15.0

15.2

1.1

JSW Steel

Neutral

266

64,298

64,500

68,245

21.1

21.5

20.1

21.2

13.2

12.6

2.4

2.1

1.7

NMDC

Neutral

135

42,697

10,209

11,450

47.0

48.0

11.1

12.1

12.2

11.2

1.7

1.6

3.7

3.3

SAIL

Neutral

26,061

54,100

63,555

3.0

10.0

(10.0)

1.5

42.1

0.8

1.5

1.3

Vedanta

Neutral

330

122,556

81,206

87,345

28.0

29.0

26.5

33.5

12.4

9.8

2.8

2.4

2.3

1.9

Tata Steel

Neutral

661

64,227

121,445

126,500

16.2

17.2

65.4

81.3

10.1

8.1

1.6

1.4

1.1

0.9

Oil & Gas

GAIL

Neutral

394

66,697

53,115

52,344

14.2

15.3

30.0

31.1

13.2

12.7

1.6

1.5

1.0

ONGC

Neutral

163

209,695

83,111

84,934

44.2

44.9

16.4

16.9

10.0

9.7

1.2

1.1

2.4

Indian Oil Corp

Neutral

429

208,343

396,116

432,560

8.5

8.8

40.1

42.2

10.7

10.2

1.9

1.7

0.7

0.6

Reliance Industries

Neutral

818

532,076

257,711

267,438

17.0

18.2

89.1

89.5

9.2

9.1

0.9

0.8

1.7

1.6

Pharmaceuticals

Alembic Pharma

Buy

501

600

9,435

3,903

4,584

18.2

19.2

21.8

27.2

23.0

18.4

4.2

3.5

19.8

20.6

2.4

2.1

Alkem Laboratories Ltd

Buy

1,817

2,161

21,724

6,901

7,850

18.4

19.1

85.0

100.5

21.4

18.1

4.3

3.6

20.2

20.1

3.1

2.7

Aurobindo Pharma

Accumulate

741

823

43,417

17,086

19,478

22.1

22.0

44.7

51.4

16.6

14.4

3.7

3.0

24.7

22.7

2.7

2.3

Aventis*

Neutral

4,006

9,226

2,508

2,862

16.8

139.9

153.8

28.6

26.1

4.2

3.4

23.5

25.8

3.3

2.7

Cadila Healthcare

Reduce

477

426

48,858

11,584

13,228

20.3

20.4

18.7

21.3

25.5

22.4

5.7

4.7

24.6

22.9

4.0

3.5

Cipla

Sell

552

458

44,407

16,619

19,437

15.4

16.2

19.7

24.3

28.0

22.7

3.2

2.8

12.0

13.2

2.8

2.4

Dr Reddy's

Neutral

2,159

35,799

15,844

17,973

17.6

18.2

91.7

111.0

23.6

19.5

2.7

2.4

11.9

13.0

2.5

2.2

GSK Pharma*

Neutral

2,434

20,618

3,260

3,651

15.0

18.0

46.1

58.6

52.8

41.5

10.8

11.2

20.0

26.5

6.2

5.7

Indoco Remedies

Sell

195

153

1,798

1,154

1,310

14.9

11.3

12.7

17.3

15.4

2.5

2.2

15.0

1.7

1.4

Ipca labs

Accumulate

471

540

5,941

3,593

4,022

14.5

15.5

19.4

25.2

24.3

18.7

2.2

2.0

9.5

11.2

1.7

1.5

www.angelbroking.com

Top Picks Report

September 12, 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

978

1,467

44,170

18,657

21,289

21.3

23.3

52.8

66.7

18.5

14.7

2.8

2.4

16.3

17.5

2.4

2.0

Natco Pharma

Accumulate

735

796

12,804

1,836

1,946

31.8

28.9

22.1

20.6

33.2

35.6

6.7

6.0

20.1

16.7

6.8

6.4

Sun Pharma

Buy

469

558

112,441

32,899

36,451

26.9

25.4

31.6

32.3

14.8

14.5

2.6

2.3

18.7

18.8

3.0

2.6

Syngene International

Buy

476

557

9,524

1,402

1,823

32.8

36.0

15.9

20.7

30.0

23.1

5.6

4.6

18.7

20.0

6.8

5.2

Power

Tata Power

Neutral

21,800

32,547

33,806

20.5

4.7

5.4

17.2

15.1

1.6

1.4

10.5

1.7

1.6

NTPC

Neutral

170

140,503

86,070

101,246

28.3

30.7

12.9

16.2

13.2

10.5

1.4

1.3

10.6

12.4

3.0

2.7

Power Grid

Neutral

216

112,741

29,183

32,946

89.7

90.0

18.0

20.8

12.0

10.4

2.0

1.8

17.7

18.2

7.8

7.2

Real Estate

Prestige Estate

Neutral

258

9,660

4,607

5,146

21.0

22.2

7.9

9.8

32.6

26.3

2.0

1.9

10.3

12.0

3.3

3.0

MLIFE

Buy

439

522

2,255

487

590

12.3

17.8

21.0

31.2

20.9

14.1

1.1

1.0

5.2

7.4

3.3

2.7

Telecom

Bharti Airtel

Neutral

402

160,656

97,903

105,233

36.0

36.3

9.3

11.1

43.2

36.4

2.1

2.0

5.0

5.6

2.6

2.3

Idea Cellular

Neutral

28,368

35,012

37,689

27.1

27.7

(4.4)

(2.7)

1.2

1.3

(6.8)

(4.6)

2.1

1.9

zOthers

Abbott India

Neutral

4,153

8,824

3,244

3,723

14.9

16.1

167.5

209.4

24.8

19.8

5.5

4.6

23.7

24.8

2.4

2.0

Asian Granito

Accumulate

448

490

1,347

1,169

1,286

12.5

16.0

19.7

28.0

22.7

3.0

2.6

10.7

11.6

1.4

1.2

Bajaj Electricals

Accumulate

366

395

3,719

4,646

5,301

6.7

7.6

16.1

22.3

22.8

16.4

3.7

3.2

16.4

19.2

0.8

0.7

Banco Products (India)

Neutral

218

1,562

1,530

1,695

13.2

12.7

19.0

20.0

11.5

10.9

1.8

1.6

0.2

0.9

103.4

Coffee Day Enterprises

Neutral

246

5,069

3,494

3,913

17.4

18.0

4.8

5.7

43.2

2.2

2.1

0.1

1.9

1.7

Ltd

Elecon Engineering

Neutral

580

171

201

15.0

16.2

36.0

43.0

1.4

1.2

0.1

2.8

2.3

Garware Wall Ropes

Neutral

910

1,991

928

1,003

15.2

39.4

43.2

23.1

21.1

3.8

3.3

16.5

15.4

2.0

1.8

Goodyear India*

Neutral

820

1,891

1,717

1,866

11.8

12.3

47.9

49.8

17.1

16.5

2.6

2.3

15.6

15.7

0.8

114.1

Hitachi

Neutral

1,910

5,193

2,355

2,715

10.3

10.8

49.0

60.9

39.0

31.4

9.1

7.2

0.2

2.2

1.9

HSIL

Neutral

382

2,763

2,240

2,670

14.6

15.0

17.0

22.0

22.5

17.4

1.9

1.8

0.1

1.5

1.2

Interglobe Aviation

Neutral

1,216

43,979

22,570

27,955

14.2

15.0

63.6

81.8

19.1

14.9

10.1

8.5

0.5

0.6

1.6

1.2

Jyothy Laboratories

Neutral

415

7,545

1,781

2,044

14.1

15.0

9.4

10.5

44.4

39.6

9.5

8.9

0.2

4.5

3.8

Linc Pen & Plastics

Neutral

235

347

420

462

9.3

15.3

17.1

15.4

13.7

2.6

2.7

16.9

19.5

0.9

0.8

M M Forgings

Neutral

623

752

542

642

20.1

21.0

41.6

56.8

15.0

11.0

2.1

1.8

0.1

0.2

1.8

1.6

Mirza International

Neutral

176

2,114

1,148

1,285

18.0

8.0

9.4

21.9

18.8

3.6

3.1

16.3

16.1

2.0

1.7

Navkar Corporation

Buy

194

265

2,764

561

617

41.5

11.5

12.7

16.8

15.3

1.8

1.6

10.5

10.4

5.6

4.9

Nilkamal

Neutral

1,613

2,406

2,317

2,525

11.4

11.1

96.0

105.0

16.8

15.4

2.9

2.5

0.2

1.0

0.9

Parag Milk Foods

Neutral

247

2,079

1,987

2,379

7.6

9.0

12.4

18.3

19.9

13.5

2.8

2.5

8.2

13.2

1.2

1.0

www.angelbroking.com

Top Picks Report

September 12, 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

179

2,379

1,811

1,992

13.2

8.1

8.8

22.1

20.3

2.2

2.4

10.1

12.0

1.6

1.5

Relaxo Footwears

Neutral

516

6,204

1,981

2,310

13.7

14.5

12.0

15.5

43.0

33.3

8.4

6.8

0.2

3.2

2.7

Siyaram Silk Mills

Accumulate

2,267

2,500

2,125

1,769

1,981

12.7

113.1

131.1

20.0

17.3

3.1

2.7

15.5

1.4

1.2

Styrolution ABS India* Neutral

907

1,596

1,800

1,980

8.0

8.1

42.0

46.2

21.6

19.6

2.4

2.2

0.1

1.0

0.9

Surya Roshni

Neutral

305

1,338

4,870

5,320

7.7

7.8

22.8

28.1

13.4

10.9

1.8

1.5

0.1

0.5

0.4

TVS Srichakra

Neutral

3,210

2,458

2,729

2,893

12.7

12.5

248.5

265.0

12.9

12.1

3.7

3.0

0.3

0.9

0.8

Visaka Industries

Neutral

649

1,031

1,104

1,214

12.1

12.6

31.0

37.9

20.9

17.2

2.6

2.3

0.1

1.2

1.0

VIP Industries

Accumulate

228

250

3,224

1,450

1,693

10.4

10.5

6.5

7.8

34.9

29.2

7.4

6.4

21.1

22.1

2.2

1.9

Navin Fluorine

Accumulate

667

730

3,286

945

1,154

22.4

22.6

28.7

34.8

23.2

19.2

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 11, 2017

www.angelbroking.com

Top Picks Report | September 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

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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

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Ratings (Based on expected returns

Buy (> 15%)

Accumulate (5% to 15%)

Neutral (-5 to 5%)

over 12 months investment period):

Reduce (-5% to -15%)

Sell (< -15)