(Focus on Rural and Reform Continues)
Union Budget 2018 -19 Review
Top Picks
Top-Picks - February 2018
Company
CMP (`) TP (`)
Angel top-picks updated post budget 2018-19
Banking/NBFC
Budget Highlight: The budget for 2018-19 has reinforced the government’s
Aditya Birla Capital
174
230
agenda to bring reforms and improve macros. The FM maintained FY2018 fiscal deficit
Dewan Housing
569
712
target of 3.5% and has set a target of 3.3% for FY2019, which is slightly higher than
GIC Housing Finance
423
655
the earlier target of 3%. However, with improving tax compliance and GST collection,
Karur Vysya Bank
114
161
the target looks achievable. In this Budget, FM has particularly focused on
ICICI Bank
346
425
strengthening agriculture and rural economy by way of MSP support and fund
Consumption
allocation for various rural related infrastructure programs to boost the distressed rural
Asian Granito
569
639
economy. In the budget, FM has announced 10% long term capital gain tax on equity
Blue Star
730
883
investments over `1lakh, which is slightly negative for market in the near term.
Siyaram Silk Mills
660
813
However, in our view, equity investments still remain the most attractive asset class
LT Foods
91
128
compared to others like fixed deposits.
Century Plyboards
324
400
Our View: We believe that this budget is overall neutral for markets. However, on the
Media/Automobiles
positive side, the FM has not stretched Fiscal deficit target by announcing unproductive
Maruti Suzuki
9,402
10,619
measures like loan waiver schemes, as the previous government did in past budget.
Music Broadcast
389
475
Going forward, we expect the market would perform better on the back of growth in
TV Today
453
500
corporate earnings. Further, credit growth is showing recovery, inflation is looking
Real Estate/Infra/Logistics/Power
manageable and global economy continues to be buoyant. Moreover, current
KEI Industries
400
436
government has initiated many other reforms likes GST, Jan Dhan Accounts, IBC and
Navkar Corp.
183
265
recapitalization of PSU banks which should be overall positive for Indian economy.
Pharmaceutical
Angel top-picks conviction remains intact post budget: In this Budget, we
Alkem Laboratories
2,200
2,341
have observed that government remained mainly in focus on rural, housing and
Source: Angel Research;
infrastructure. Angel Top-Picks portfolio already has exposure in these sector stocks
Note: CMP as of February 01, 2018
which are well placed to capture the budget benefits (like Asian Granito, Century
Plyboards India, Dewan Housing Finance, GIC Housing, Siyaram Silk Mills).
Going ahead, we expect GDP growth would be more visible due to strong reforms
taken by government, in addition to buoyant global economy. We expect the strong
growth in consumption sectors to benefit the stocks in our Top-Picks like LT Foods, Blue
Star, KEI Industries and Maruti Suzuki.
Exhibit 1: Angel Top-Picks Performance (Oct15 - Jan18)
Exhibit 2: Top performing Picks
80%
Stocks
Returns
Invested Months
60%
Outperform
Siyaram Silk Mills
253%
27
35.0%
ance
KEI Industries
221%
13
40%
74.1%
Dewan Housing
201%
22
20%
39.1%
Asian Granito
109%
16
0%
Blue Star
105%
26
Top-Picks
BSE 100
Source: Company, Angel Research
Source: Company, Angel Research
Exhibit 3: Budget announcement would benefit the Angel Top-picks basket
Themes
Budget announcement
Stocks in our Top-Picks
Infrastructure
Significant allocation in Pradhan Mantri Awas Yojna and establishment of a
Asian Granito, Century Plyboards India ,
/Affordable
dedicated Affordable Housing Fund (AHF) in National Housing Bank
Dewan Housing Finance, GIC Housing
housing
Increased allocation in rural schemes like upgradation of rural market, rural
Rural
Siyaram Silk Mills
infra and education; MSP support for farmer
Source: Company, Angel Research
Annexure: (1) Key Budget highlight (2) Sectoral Impact (3) Angel top-picks updated post
budget 2019
Please refer to important disclosures at the end of this report (01 February 2018)
1
Union Budget 2018 -19 Review
Key Budget Highlights
Fiscal deficit target for FY2019 under comfortable range
The FM has revised FY2018 fiscal deficit target to 3.5% and set a target of 3.3%
for FY2019, which is slightly higher than the earlier target of 3%. However, with
improving tax compliance and GST collection, the target looks achievable in spite
of rising bond yields. Moreover, the continued focus on reducing the fiscal deficit
while improving ease of doing business, transparency in governance and bringing
bigger reforms will benefit the country. Government has given a lofty disinvestment
target of `100,000cr for FY18 and `80,000cr for FY19 to support its fiscal maths.
Budget Maths
While the tax-to-GDP ratio would increase in FY19E by 56 bps as compared to
FY18, the total expenditure as a % of GDP is likely to remain stable at 13% level. In
FY2018, government saw strong indirect tax collections (5.9% of GDP/ 9% yoy
growth), which is further expected to increase by 20% in FY19E on account of
better GST collections. Dividend and other receipts have fallen by ~`36000cr,
leading to a fall in non tax revenues by 30% yoy. Any failure to undertake
disinvestments would lead to fiscal slippages.
Exhibit 4: Key Fiscal indicators ( % of GDP)
As a % of GDP
FY17RE
FY18BE
FY18RE
FY19BE
Gross Tax Revenue
11.3
11.3
11.5
12.0
Devolution to State
4.1
4.1
4.0
4.2
Net Tax to Centre
7.2
7.3
7.5
7.8
Direct Tax
5.6
5.8
5.9
6.1
Indirect Tax
5.7
5.5
5.5
5.9
Capital Receipt (ex borrowing)
0.4
0.5
0.7
0.5
Revenue expenditure
11.5
10.9
11.4
11.3
Subsidies
1.7
1.5
1.5
1.5
Total Capital Expenditure
1.9
1.8
1.6
1.6
Total Expenditure
13.4
12.7
13.0
12.9
Revenue Deficit
2.1
1.9
2.6
2.2
Fiscal Deficit
3.5
3.2
3.5
3.3
Primary Deficit
0.3
0.1
0.4
0.3
Source: Budget documents, Angel Research
Please refer to important disclosures at the end of this report (01 February 2018)
2
Union Budget 2018 -19 Review
Exhibit 5: Budget 2018-19 at a glance
Budget ( ` Cr)
YOY (%)
FY17RE
FY18BE
FY18RE
FY19BE
FY18RE
FY19BE
(A) Revenue Receipts (1+2)
14,23,562
15,15,771
15,05,428
17,25,738
5.8
14.6
Gross Tax Revenue (a+b)
17,03,243
19,11,579
19,46,119
22,71,242
14.3
16.7
Devolution to States/Trf to NCCD
6,14,451
6,84,565
6,73,005
7,88,093
9.5
17.1
1) Tax Revenue (Net to Centre)
10,88,792
12,27,014
12,69,454
14,80,649
16.6
16.6
a) Direct Taxes
8,47,097
9,80,000
10,05,000
11,50,000
18.6
14.4
Income Tax
3,53,174
4,41,255
4,41,255
5,29,000
24.9
19.9
Corporate Tax
4,93,924
5,38,745
5,63,745
6,21,000
14.1
10.2
b) Indirect taxes
8,56,146
9,31,579
9,41,119
11,21,242
9.9
19.1
Custom Duties
2,17,000
2,45,000
1,35,242
1,12,500
-37.7
-16.8
Excise Duties
3,87,369
4,06,900
2,76,995
2,59,600
-28.5
-6.3
Service Tax
2,47,500
2,75,000
79,507
0
-67.9
-100.0
GST
4,44,631
7,43,900
Others
4,277
4,679
4,744
5,242
10.9
10.5
2) Non Tax Revenue
3,34,770
2,88,757
2,35,974
2,45,089
-29.5
3.9
35,997
Interest receipt
18,149
19,021
13,551
15,162
-25.3
11.9
Dividend and profits receipts
1,53,222
1,42,430
1,06,433
1,07,312
-30.5
0.8
Others
1,63,399
1,27,306
1,15,990
1,22,615
-29.0
5.7
(B) Capital Receipts (3+4+5)
5,90,845
6,30,964
7,51,702
6,73,409
27.2
-10.4
3) Recovery of Loans
11,071
11,932
17,473
12,199
57.8
-30.2
4) Disinvestment
45,500
72,500
1,00,000
80,000
119.8
-20.0
5) Borrowings and Other Liabilities
5,34,274
5,46,532
6,34,229
5,81,210
18.7
-8.4
Total Receipt(A+B)
20,14,407
21,46,735
22,57,130
23,99,147
12.0
6.3
Revenue expenditure
17,34,560
18,36,934
19,44,305
21,41,772
12.1
10.2
Capital expenditure
2,79,847
3,09,801
2,73,445
3,00,441
-2.3
9.9
Total Expenditure (C+D)
20,14,407
21,46,735
22,17,750
24,42,213
10.1
10.1
(E) Fiscal Deficit (C+D-A-3-4)
5,34,274
5,46,532
5,94,849
6,24,276
11.3
4.9
(F) Revenue Deficit (6+8-A)
3,10,998
3,21,163
4,38,877
4,16,034
41.1
-5.2
(G) Primary Deficit (E -6a)
51,205
23,454
64,006
48,481
25.0
-24.3
GDP
1,50,75,429
1,68,47,455
1,69,95,686
1,89,17,455
12.7
11.3
Fiscal Deficit (% of GDP)
3.54%
3.24%
3.5%
3.3%
Source: budget documents, Angel Research
Please refer to important disclosures at the end of this report (01 February 2018)
3
Union Budget 2018 -19 Review
Disinvestment target upped for FY18 but looks achievable
On the divestment front, the government has set a target of `100,000cr for FY18
versus earlier target of `72,500cr. The government has generated disinvestment
proceeds of `54,338cr so far and the `37,000cr ONGC-HPCL deal is expected to
bring the overall divestment proceeds in FY18 to cross `1 lakh crore mark. During
the year, stake sale/ IPO of GIC Re and New India Assurance mobilised `17,357cr
during FY18. The government has initiated strategic disinvestment in 24 PSUs
including Air India this fiscal, and has kept `80,000cr disinvestment target for
FY19.
Exhibit 6: Disinvestment proceeds
1,20,000
1,00,000
80,000
60,000
40,000
20,000
0
Source: Budget documents, Angel Research
Subsidy Burden on an overall declining trend
Since BJP came into power in 2014, the subsidies have been falling as a % of GDP
due to couple of favorable factors like falling prices of oil and fertilizers raw
material, and reforms in agriculture sector like DBT and regularization of Urea
pricing. However with the MSP hike, we expect FY2019 food subsidies to increase
by 21% which would put burden on the fiscal deficit.
Please refer to important disclosures at the end of this report (01 February 2018)
4
Union Budget 2018 -19 Review
Exhibit 7: Subsidy Burden on a declining trend
Subsidy Break-down
FY14
FY15
FY16RE
FY17RE
FY18RE
FY19E
Major Subsidies
2,44,717
2,49,016
2,41,857
2,32,705
2,29,716
2,64,256
Fertilizer Subsidy
67,339
71,076
72,438
70,000
64,974
70,000
yoy growth (%)
3%
6%
1.9%
-3.4%
-7.2%
7.7%
Food Subsidy
92,000
1,17,671
1,39,419
1,35,173
140282
169323
yoy growth (%)
8%
28%
18.5%
1.0%
3.8%
20.7%
Petroleum Subsidy
85,378
60,269
30,000
27,532
24,460
24,933
yoy growth (%)
-12%
-29%
-50.2%
-8%
-11%
2%
Interest Subsidy
8,137
7,632
13,808
18865
23,204
23,204
yoy growth (%)
12%
-6%
80.9%
4%
23%
23%
Other Subsidy
1,778
1,610
2,136
3,128
4,066
4,066
yoy growth (%)
-23%
-9%
32.7%
46%
30%
30%
Total Subsidy
2,54,632
2,58,258
2,57,801
2,54,698
2,56,986
2,91,526
yoy growth (%)
-1%
1%
-0.2%
-1%
1%
13%
% to GDP
2.2%
2.0%
1.8%
1.7%
1.5%
1.5%
Source: Budget document, Angel Research
Long Term Capital Gain Tax surprises negatively but market
likely adjust to new reality
The budget carried a negative surprise of Long Term Capital Gains exceeding
`1lakh to be taxed at 10% without indexing. All capital gains till 31st Jan 2018 will
be grandfathered (i.e. the closing price at the end of the 31st Jan 2018 becomes
the cost price of the stock). STCG remains unchanged at 15% while tax on
distributed income of equity oriented funds is to be levied at 10%; this will
negatively impact the dividend MF options. FM expects these schemes to add
`20,000cr to its coffers. We expect that the stock markets and investors will
eventually adjust to this change, as the equity class continues to remain the most
attractive investment option.
Relaxation in certain tax rates - boost for consumption
The government has not made any major changes in the personal tax rate
except that the standard deduction of `40,000 has been increased in respect
of transport allowance and reimbursement of miscellaneous medical
expenses.
FM has given incentives aimed towards senior citizens. The exemption of
interest income on deposits with banks and post offices has been increased
from `10,000 to `50,000, with TDS not required to be deducted on such
income. This benefit shall also be available for interest from all fixed deposits
schemes and recurring deposit schemes.
He also announced raising the limit of deduction for health insurance
premium and medical expenditure from `30,000 to `50,000 under section
80D for senior citizens.
Moreover, in order to further make the small enterprises more competitive, the
government has reduced the tax rate to 25% v/s. 30% for entities having
revenue of upto `250cr. This will help in removing some distress from the
MSME. This is likely to benefit the consumption sector.
Please refer to important disclosures at the end of this report (01 February 2018)
5
Union Budget 2018 -19 Review
Sectoral Impact
Please refer to important disclosures at the end of this report (01 February 2018)
6
Union Budget 2018 -19 Review
Agriculture
Positive
Announcement
Impact
Declared Minimum support price (MSP) for the majority
Positive for all Agri input companies, as farmer incomes
of rabi crops at least at one and a half times the cost
will go up.
involved. Now, we have decided to implement this
resolution as a principle for the rest of crops. As per pre-
determined principle, Government has decided to keep
MSP for the all unannounced crops of kharif at least at
one and half times of their production cost.
Long term negative for Agri input companies, unless they
Government has promoted organic farming in a big way.
shift to natural organic farming products, which looks
Organic farming by Farmer Producer Organizations
imperative given the benefits accruing to consumers.
(FPOs) and Village Producers’ Organizations (VPOs) in
large clusters, preferably of 1000 hectares each, will be
encouraged. Women Self Help Groups (SHGs) will also
be encouraged to take up organic agriculture in clusters
under National Rural Livelihood Programme.
India’s agri-exports potential is as high as US$100 bn
against current exports of US $30 bn. To realize this
potential, export of agri-commodities will be liberalized.
Will benefit Agri export oriented companies like UPL &
In addition, government proposes to set up state-of the-
Rallis
art testing facilities in all the forty-two Mega Food Parks.
The Government has set up a Long Term Irrigation Fund
Will benefit Jain Irrigation
(LTIF) in NABARD for meeting funding requirement of
irrigation works. Scope of the Fund would be expanded
to cover specified command area development projects.
In the Union Budget, 2017, government had announced
the reduction of corporate tax rate to 25% for companies
Positive for small size companies, though none in our
whose turnover was less than `50cr in financial year
coverage benefit out of the same.
2015-16. This budget, the government proposes to
extend the benefit of this reduced rate of 25% also to
companies who have reported turnover up to `250cr in
the financial year 2016-17.
Please refer to important disclosures at the end of this report (01 February 2018)
7
Union Budget 2018 -19 Review
Automobile
Positive
Announcement
Impact
MGNREGA allocation has increased from `48,000cr in
This is likely to create a positive sentiment among first time
FY2018 to
`55,000cr in FY2019. Also substantially
buyers for entry level small cars, two wheelers and
increase allocation of National Rural Livelihood Mission
tractors.
to `5750cr in FY2019.
35,000 km of Roads under Bharat Mala to be expedited
This will be positive for CV, especially Heavy duty vehicles
and hike on Infrastructure spent.
and construction equipment
Increase in custom duty of Radial tyres used in trucks and
This is positive for all tyres domestic companies
buses.
Banks & Financial Services (BFSI)
Neutral
Announcement
Impact
The fiscal deficit for FY18 is likely to be higher at 3.5%
This will increase government borrowing plan and this
compared to the target 3.2%of the GDP.
would reduce possibility of near term rate cut.
Refinancing policy and eligibility criteria set by MUDRA
This will be positive for NBFC which primarily lend to
will be reviewed for better refinancing of NBFCs.
MSME/SME, as it will help them to grow advances and
would marginally reduce capital consumption.
A dedicated Affordable Housing Fund (AHF) in National
Housing Bank.
Positive for housing finance Companies
The Govt to launch a flagship National Health Protection
Positive for Insurance companies such as SBI Life
Scheme to cover over 10cr poor and vulnerable families
Insurance Co. Ltd, New India Assurance Co. Ltd, ICICI
providing coverage upto `5lakh rupees per family per
Lombard General Insurance Co. Ltd, HDFC Standard
year for secondary and tertiary care hospitalization.
Life Insurance Co. Ltd, ICICI Prudential Life Insurance
Co. Ltd and General Insurance Corp.
Please refer to important disclosures at the end of this report (01 February 2018)
8
Union Budget 2018 -19 Review
Capital Good
Positive
Announcement
Impact
Higher capital outlay to Defence by 10% to `99564cr.
Positive for BEL, L&T, Bharat Forge
Increased allocation towards the Metro Projects
Higher allocation towards Metro Rail Projects by 55% to
(Bengaluru and Mumbai) for FY2019. Positive for L&T,
`28000cr.
BEL & BEML.
Allocation to Railways has been increased by 19.6% to
Positive for Titagarh Wagons, Texmaco & Alstom India.
`55,000cr as against the allocation last year of
`46,155cr.
Cement
Positive
Announcement
Impact
Higher allocation for Infrastructure, increased thrust on
Housing for all and building toilets under Swachh Bharat
Positive for cement producers with pan India presence
Abhiyan.
like Ultratech Cement, Shree Cement and The Ramco
Infrastructure receives massive `5.97 lakh cr for FY19,
Cements.
up by 21%.
FMCG
Positive
Announcement
Impact
MGNREGA allocation has increased from `48,000cr in
This will be positive for the FMCG sector, as it will
FY2018 to `55,000cr in FY2019. Also substantially
increase the disposable incomes in the hands of rural
increase allocation of National Rural Livelihood Mission
households. Positive for FMCG companies like HUL,
to `5750cr in FY2019.
Dabur, Marico, etc.
Flat `40,000 as a standard deduction to the salaried
It will leave more money in the hands of consumers,
class of taxpayers and pensioners.
which would boost the demand for FMCG companies.
Please refer to important disclosures at the end of this report (01 February 2018)
9
Union Budget 2018 -19 Review
Infrastructure
Positive
Announcement
Impact
Higher allocation towards the Roads & Highways sector
Positive for Road EPC players like KNR Constructions,
up
~16% yoy to
`71,000cr. Further, allocated
Sadbhav Engineering, IRB Infra & J Kumar Infra project
`19,000cr for construction of roads in the rural areas
under Pradhan Mantri Gram Sadak Yojana (PMGSY).
This will benefit diversified EPC players like L&T, Bhel,
Infrastructure receives massive `5.97lakh cr for FY19, up
HCC, NBCC
by 21%.
`600cr allocated to the Sagarmala & Inland Water
Positive for EPC players like MBL Infrastructure and
Transport projects.
others focused on inland waterways projects like
Mercator & Dredging Corp.
Information Technology
Positive
Announcement
Impact
In the Union Budget, 2017, government had announced
Positive for small size companies, though none in our
the reduction of corporate tax rate to 25% for companies
coverage benefit out of the same.
whose turnover was less than `50cr in financial year
2015-16. This budget, the government proposes to
extend the benefit of this reduced rate of 25% also to
companies who have reported turnover up to `250cr in
the financial year 2016-17.
Please refer to important disclosures at the end of this report (01 February 2018)
10
Union Budget 2018 -19 Review
Metals & Mining
Positive
Announcement
Impact
Rise in allocation to infra space.
Marginally positive for steel producers, as it would lead
to incrementally better demand for steel.
Pharmaceutical
Positive
Announcement
Impact
The National Health Policy, 2017 has envisioned Health
Positive for the sector, though given government will be
and Wellness Centres as the foundation of India’s health
low margin business.
system. These 1.5 lakh centres will bring health care
system closer to the homes of people. The Budget has
committed
`1200cr in this budget for this flagship
programme, which will also include free essential drugs
and diagnostic services.
Positive for the sector
Government plans to launch a flagship National Health
Protection Scheme to cover over
10cr poor and
vulnerable families (approximately 50cr beneficiaries)
providing coverage upto 5 lakh rupees per family per
year for secondary and tertiary care hospitalization.
Government has estimated that the schematic budgetary
Positive for the sector
expenditure on health, education and social protection
for
2018-19 is
`1.38 lakh cr against estimated
expenditure of `1.22 lakh cr in BE 2017-18. The same
for Health & Family welfare is estimated to be `52,800cr
V/s `47,353cr in FY2018.
In the Union Budget, 2017, government had announced
Positive for small size companies, though none in our
the reduction of corporate tax rate to 25% for companies
coverage benefit out of the same.
whose turnover was less than `50cr in financial year
2015-16. This budget, the government proposes to
extend the benefit of this reduced rate of 25% also to
companies who have reported turnover up to `250cr in
the financial year 2016-17.
Please refer to important disclosures at the end of this report (01 February 2018)
11
Union Budget 2018 -19 Review
Angel top-picks updated post budget 2018-19
Please refer to important disclosures at the end of this report (01 February 2018)
12
Union Budget 2018 -19 Review
Stock Info
Dewan Housing
CMP
569
Loan growth to remain strong going ahead: Backed by healthy capital
TP
712
adequacy and increasing demand for home loans DHFL’s loan book is
Upside
25%
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)
17,840
by it in DFHFL Pramerica Life Insurance Co Ltd which added `1,969 cr to its
Beta
1.6
net worth and increases its CAR by 400 bps, to 19.3% which should fuel
52 Week High / Low
678 / 285
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
700
strong growth the company has maintained stable asset quality and we expect
600
the trend to continue.
500
Outlook: We expect the company’s loan growth to remain 23% over next two
400
years and earnings growth is likely to be more than 28%.The stock currently
300
trades at 1.9x FY2019E ABV. We maintain Buy on the stock with a target price of
200
`712.
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
FY2018E
2,279
2.4
1,171
37.4
268
1.3
13.8
15.6
2.2
FY2019E
2,927
2.7
1,556
49.7
305
1.5
16.2
11.8
1.9
Source: Company, Angel Research
Stock Info
Karur Vysa Bank
CMP
114
Loan growth to pick up from FY18 onwards: KVB had a fairly strong loan
TP
161
CAGR of 14.9% over FY11-17.However, FY17 was year of consolidation and
Upside
41%
loan book grew by only 4.7%. We expect loan growth to pick up to 11% over
Sector
Banking
FY17-19. Deposit growth is expected at 9% during the period.
Market Cap (` cr)
8,289
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
0.9
part of the troubled accounts has been classified as NPAs and hence gradually
52 Week High / Low
150 / 77
we expect the asset quality to improve. While in Q2FY18 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 down
140
NIM is expected to improve further going ahead.
120
100
Outlook: We expect KVB to post a strong loan book & earnings CAGR of 11%
80
& 22% over FY2017-19E. The stock currently trades at 1.4x FY2019E ABV. We
60
have a BUY rating on the stock.
40
20
Key Financials
-
Y/E
Op. Inc NIM
PAT
EPS
ABV ROA ROE P/E P/ABV
March
(` cr)
(%)
(` cr)
(`)
(`)
(%)
(%)
(x)
(x)
FY2018E
2,388
3.7
660
10.8
77.8
1
12.5
10.5
1.5
Source: Company, Angel Research
FY2019E
2,757
3.9
858
14.1
89.6
1.2
14.7
8.1
1.3
Source: Company, Angel Research
Please refer to important disclosures at the end of this report (01 February 2018)
13
Union Budget 2018 -19 Review
Asian Granito
Stock Info
CMP
559
AGIL’s current, vitrified sales (35%) are lower as compared to its peers like
Somany Ceramics (47%) and Kajaria Ceramics (61%). Recently, AGIL has
TP
639
launched various products in premium segment. Going forward, we expect
Upside
12 %
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)
1,684
AGIL is continuously putting efforts to increase the B2C sales from the current
Beta
1.2
level (35-36% in FY17). It is expected to reach up to 50% in next 2-3 years on
52 Week High / Low
617 / 265
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
700
profile. Going forward, we expect the company to improve its operating
600
margin from 7.5% in FY16 (excluding merger) to
13-13.5% in coming
500
financial year. Artisique Ceramics has a contract with RAS GAS to supply
400
quality natural gas at a discounted rate of 50% to current market rate, which
300
would reduce the overall power & fuel cost of the company.
200
We expect AGIL to report a net revenue CAGR of ~10% to ~`1,286cr and net
100
profit CAGR of ~29% to `65cr over FY2017-19E. We recommend 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)
(x)
(x)
(x)
FY2018E
1,140
13.1
49
16.3
10.9
34.3
3.7
13.0
1.7
FY2019E
1,286
13.3
65
21.6
12.6
25.9
3.3
11.1
1.5
Source: Company, Angel Research
Blue Star
Stock Info
CMP
730
BSL is one of the largest air-conditioning companies in India. With a mere 3%
penetration level of ACs vs 25% in China, the overall outlook for the room air-
TP
883
conditioner (RAC) market in India is favourable.
Upside
21%
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
Market Cap (` cr)
7,002
share. This has resulted in the Cooling Products Division (CPD)'s share in
Beta
0.2
overall revenues increasing from~23% in FY2010 to ~45% in FY2017
52 Week High / Low
845 / 497
(expected to improve to ~47-48% in FY2018E). With 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 Unitary Products, we expect the
900
overall top-line to post a revenue CAGR of ~19% over FY2017-19E and
800
700
margins to improve from
5.8% in FY2017 to
6.6% in FY2019E. We
600
recommend a buy rating on the stock.
500
400
Key Financials
300
Y/E
Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
200
100
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
-
FY2018E
5,220
6.3
161
16.8
19.9
43.4
8.6
23.3
1.5
FY2019E
6,207
6.6
214
22.3
23.3
32.8
7.6
18.7
1.2
Source: Company, Angel Research
Source: Company, Angel Research
Please refer to important disclosures at the end of this report (01 February 2018)
14
Union Budget 2018 -19 Review
Stock Info
Siyaram Silk Mills
CMP
660
SSML has strong brands which cater to premium as well as popular mass
TP
813
segments of the market. Further, SSML entered the ladies' salwar kameez and
Upside
23%
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)
3,093
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
0.7
300-350 stores going forward. Further, the company's brands are sold across
52 Week High / Low
253/799
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 `126cr over FY2017-19E on
900
back of market leadership in blended fabrics, strong brand building, wide
800
distribution channel, strong presence in tier II and tier III cities and emphasis
700
600
on latest designs and affordable pricing points. At the current market price,
500
SSML trades at an inexpensive valuation. We have a buy recommendation on
400
the stock and target price of `813.
300
200
Key Financials
100
-
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2018E
1,769
13.0
108
23.1
15.7
28.6
4.5
14.8
1.9
Source: Company, Angel Research
FY2019E
1,981
13.0
126
26.8
15.7
24.6
3.9
12.9
1.7
Source: Company, Angel Research
Stock Info
Maruti Suzuki
CMP
9,402
The Automobile sector is expected to benefit from the GST implementation.
TP
10,619
The sector has seen a pick up in the volumes in FY17 as there were several
Upside
13%
positive factors like normal monsoon and lower interest rates.
Sector
Automobiles
Maruti Suzuki continues to hold ~52% market share in the passenger vehicles.
Market Cap (` cr)
2,84,044
The launch of exciting models has helped the company to ride on the
Beta
1.0
premiumization wave that is happening in the country. In the last two years,
company has seen improvement in the business mix with the pie of the utility
52 Week High / Low
10,000/5,644
vehicles growing from ~4% to current 15%. The 2-3 months of waiting period
of new models, launch of Swift Hatchback in January-2018 and headroom for
3 year-Chart
more capacity utilization at Gujarat plant are the near term earning triggers.
12,000
10,000
Due to the favorable business mix, company has also been seeing
8,000
improvement in the margins. Company has already moved from ~11-12%
6,000
EBITDA margin range in FY14 to current ~17% margin range in 3QFY18.
Together with higher operating leverage at Gujarat plant, increasing Nexa
4,000
outlets, and improving business mix, we believe that company has further
2,000
room to improve its margins. We have an accumulate rating on the stock.
-
Key Financials
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
Source: Company, Angel Research
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2018E
80,815
15.6
8,506
281.7
21.7
33.4
7.4
18.9
3.3
FY2019E
96,680
16.9
10,991
364.0
22.8
25.8
6.0
13.8
2.7
Source: Company, Angel Research
Please refer to important disclosures at the end of this report (01 February 2018)
15
Union Budget 2018 -19 Review
Stock Info
TV Today Network
CMP
453
TTNL enjoys a strong viewership ranking in the Hindi and English news
TP
500
channel categories. The company’s Hindi news channel - Aaj Tak has
Upside
10%
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)
2,700
No. 2 ranking from No. 4 earlier. Its other channels like Dilli Aaj Tak and Tez
Beta
0.3
are also popular among viewers.
52 Week High / Low
486 /211
TTNL is a play of higher operating leverage that would be visible as
advertisement revenues gain traction. Going ahead, we expect EBITDA
3 year-Chart
margins would improve.
500
450
400
We expect TTNL to report a net revenue CAGR of ~11% to ~`749cr and net
350
profit CAGR of ~14% to `122cr over FY2017-19E. We have an accumulate
300
250
rating on the stock
200
150
100
Key Financials
50
-
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2018E
669
26.9
109
18.3
15.3
24.8
3.8
13.3
3.6
Source: Company, Angel Research
FY2019E
749
26.9
122
20.5
17.5
22.1
3.9
12.0
3.2
Source: Company, Angel Research
Music Broadcast
Stock Info
Radio Industry is protected by licenses for 15 years, thereby restricting the entry
CMP
389
of new players. This would support the existing companies to strengthen their
TP
475
position and maintain a healthy growth rate.
Upside
25%
It has grabbed the Number 1 position in Mumbai, Bengaluru and Delhi in
Sector
Media
terms of number of listener. This is helping MBL to charge premium rate,
Market Cap (` cr)
2,213
which resulting into higher EBITDA margin (33.6%) compare to 22% of ENIL.
Beta
0.5
MBL outperformed its closest peer with 18.4% CAGR in revenue over FY2013-
52 Week High / Low
458/321
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
500
of 12.1% v/s. 9.1% of industry owing to higher advertising volumes.
450
400
Capex for 39 licenses have been done for the next 15 years, hence no heavy
350
incremental Capex requirement would emerge. Moreover, the maintenance
300
250
Capex would be as low as `5-10cr. This would leave sufficient cash flow to
200
distribute as dividend. We have a buy recommendation on the stock and
150
100
target price of `475.
50
-
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
FY2018E
317
34.4
56
9.8
9.3
39.6
3.7
18.0
6.2
FY2019E
372
34.9
80
14.0
12.0
27.8
3.3
14.6
5.1
Source: Company, Angel Research
Please refer to important disclosures at the end of this report (01 February 2018)
16
Union Budget 2018 -19 Review
Stock Info
KEI Industries
CMP
400
KEI’s current order book (OB) stands at `2,780cr (segmental break-up:
TP
436
`1,990cr in EPC, `560cr in Cable & `230cr in EHV). Its OB grew by ~28% in
Upside
9%
the last 3 years due to strong order inflows from State Electricity Boards, Power
Sector
Cable
grid, etc.
Market Cap (` cr)
3,140
KEI’s consistent effort to increase its retail business from 30-32% of revenue in
Beta
1.3
FY17 to 40-45% of revenue in the next 2-3 years on the back of strengthening
52 Week High / Low
423/151
distribution network (currently 926 which is expect to increase `1,500 by FY19)
and higher ad spend (increased from `2cr in FY13 to `7.5cr in FY17 and
expected to spend).
3 year-Chart
450
KEI’s export (FY17 - 8-10% of revenue) is expected to reach a level of ~14-
400
15% in next two years with higher order execution from current OB and
350
300
participation in various international tenders. We expect a strong
~26%
250
growth CAGR over FY2017-19 in exports. We expect KEI to report net revenue
200
150
CAGR of ~13% to ~`3,392cr and net profit CAGR of ~19% to `140cr over
100
FY2017-19E. Hence we have an accumulate rating on the stock.
50
-
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
FY2018E
3,001
10.0
119
15.5
21.0
24.1
5.1
10.8
1.1
FY2019E
3,392
10.0
140
18.1
20.0
20.6
4.1
9.7
1.0
Source: Company, Angel Research
Stock Info
GIC Housing Finance Ltd
CMP
423
Backed by the new management, GICHF is aiming for 2.0x growth in the loan
TP
655
book over the period of FY16-FY19E to `16,000cr. GICHF has healthy capital
Upside
55%
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.
GICHF is consistently decreasing bank borrowing and increasing high yield
Market Cap (` cr)
2,278
loan book which is expected to boost its Net Interest Margin. The share of
Beta
1.3
bank borrowing was 75% in FY15, which fell to 55% in FY17. In our opinion,
52 Week High / Low
623 /293
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
700
FY17 GNPA-2.3% and NPA-0.3%). This is primarily due to GICHF has not
600
written off any bad asset and has not sold any bad assets to ARC. New
500
Management is expediting asset quality improvement.
400
We expect the GICHF’s loan growth to grow at a CAGR of 24.3% over next
300
two years and RoA/RoE to improve from 1.7%/19.0% in FY17 to 2.0%/23.0%
200
in FY19E.The stock is currently trading at 2.1x FY2019E ABV. We have a Buy
100
rating on the stock.
-
Key Financials
Y/E
Op. Inc NIM
PAT
EPS
ABV ROA ROE P/E P/ABV
Source: Company, Angel Research
March
(` cr)
(%)
(` cr)
(`)
(`)
(%)
(%)
(x)
(x)
FY2018E
376
3.6
180
33
184
1.7
20
13
2.3
FY2019E
477
3.7
215
40
219
1.9
23
11
1.9
Source: Company, Angel Research
Please refer to important disclosures at the end of this report (01 February 2018)
17
Union Budget 2018 -19 Review
Stock Info
Navkar
CMP
183
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
45%
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)
2,753
The ICD with rail link should benefit from first mover advantage in a region
Beta
0.7
that has huge market potential and accounts for ~27% of volumes at JNPT.
The ICD should be able to capture the EXIM volumes from the region through
52 Week High / Low
247 / 155
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
100
utilizations at both JNPT and Vapi ICD. We have a Buy rating on the stock.
50
Key Financials
-
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2018E
437
35.5
89
6.2
6.1
29.4
1.8
19.3
6.8
Source: Company, Angel Research
FY2019E
600
37.0
143
10.0
8.9
18.3
1.6
13.4
5.0
Source: Company, Angel Research
Stock Info
Alkem Laboratories
CMP
2,225
Alkem is 5th largest pharma company is the domestic market and also has
TP
2,422
presence in US. It derives 73% of its revenues come from the Indian markets
Upside
6%
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)
26,603
in the formulations and overall prescriptions in the country.
Beta
0.3
In the domestic market, company operates in acute and chronic segments. It is
52 Week High / Low
2,468 /1,578
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 (92 ANDAs) in the US with high single digit ANDA
launches to grow the US revenues at ~20% growth rate from FY17-FY19E.
2,000
Overall outlook remains strong with 9% CAGR in the topline and 13% CAGR
1,500
in the bottom-line. We have an accumulate 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)
(x)
(x)
(x)
FY2018E
6,272
17.5
862
72.1
17.6
31.1
5.4
22.8
4.1
FY2019E
7,254
19.8
1,139
95.3
19.6
23.5
4.5
16.9
3.5
Source: Company, Angel Research
Source: Company, Angel Research
Please refer to important disclosures at the end of this report (01 February 2018)
18
Union Budget 2018 -19 Review
Stock Info
LT Foods
CMP
91
LT Foods LTD (LTFL) is branded specialty Foods Company engaged in milling,
TP
128
processing and marketing of branded/non-branded basmati rice and
Upside
41%
manufacturing of rice food products in the domestic and overseas markets.
Sector
Food Processing
LTFL’s flagship brand Daawat enjoys 22% market share in the branded rice
Market Cap (` cr)
2,894
market of India. It also has strong market share in North America selling
Beta
1.2
Basmati rice under the brand ‘Royal’. Currently it has access to 1,40,000
52 Week High / Low
109/4 3
traditional retail outlets, 93% reach of towns with over 2 lakh population,and
a access to 3000 Wholesalers. It has also strong network in modern trade.
3 year-Chart
LTFL is the 1st Rice company to place Brown Basmati Rice in Medical Chains.
120
100
The company has a well-diversified product basket catering to consumers of
80
all income groups. The company is present in segments like Basmati rice,
Specialty rice (non-Basmati) and other food products.
60
40
Outlook remains strong with 14%/20% CAGR in the top-line/bottom-line. We
20
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)
(x)
(x)
(x)
Source: Company, Angel Research
FY2018E
3,747
11.5
139
5.2
17.5
17.5
3.1
9.3
1.1
FY2019E
4,234
11.5
170
6.4
17.6
14.3
2.5
8.2
0.9
Source: Company, Angel Research
Century Plyboards India
Stock Info
CMP
324
Century Plyboards India Ltd (CPIL) is a plywood manufacturer dealing in
TP
400
plywood, laminates, MDF (Medium Density Fibreboard) and others with
Upside
23%
presence across India and overseas. CPIL is also engaged in logistics business
Sector
Miscellaneous
through management of a container freight station.
Market Cap (` cr)
7,209
Indian plywood industry is estimated at `18,000cr and is largely unorganised
Beta
0.8
(~75% share of revenues). However, with the implementation of GST, the
52 Week High / Low
363/205
share of organized players is expected to improve, which would be beneficial
for branded players like CPIL.
3 year-Chart
CPIL has recently added new MDF plant (1,98,000 m3, to generate ~`450-
400
350
500cr revenue), laminates (4.8 mn sheets by scaling ~50%, to generate
300
~`250-300cr revenue), particle boards
(`100cr of revenue). Capacity
250
addition across segments would boost revenue and profitability going ahead.
200
150
We expect CPIL to report net revenue & PAT CAGR of ~17% & 16%
100
respectively. We have a Buy recommendation with Target Price of `400.
50
-
ey 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
FY2018E
2007
17.5
188
8.4
21.3
38.4
8.2
22.6
4.0
FY2019E
2510
17.9
248
11.1
22.9
29.1
6.7
17.6
3.2
Source: Company, Angel Research
7
Please refer to important disclosures at the end of this report (01 February 2018)
19
Union Budget 2018 -19 Review
Stock Info
ICICI Bank
CMP
345
ICICI bank has taken a slew of steps to strengthen its balance sheet. Measures
TP
425
such as Incremental lending to higher rated corporates, reducing
Upside
23%
concentration in few stressed sectors and building up the retail loan book. The
Sector
Banking
share of retail loans in overall loans increased to 54% (Q3FY18) from 38% in
Market Cap (` cr)
222,062
FY12.
Beta
1.7
Asset quality likely to stabilize going ahead: ICICI bank’s slippages remained
52 Week High / Low
365/232
high during FY17 and hence GNPA went up to 8% vs. 5.8% in FY16. We
expect addition to stress assets to reduce and credit costs to further decline
3 year-Chart
owing to incremental lending to higher rated corporates and faster resolution
400
in Accounts referred to NCLT under IBC.
350
300
The gradual improvement in recovery of bad loans would reduce credit costs,
250
that would help to improve return ratio. The strength of the liability franchise,
200
150
shift in loan mix towards retail assets and better rated companies, and
100
improvement in bad loans would be a key trigger for multiple expansion. We
50
recommend a Buy rating on the stock, with a price target of `425.
-
Key Financials
Y/E
NII
NIM PAT
EPS ABV ROA ROE
P/E
P/ABV
Source: Company, Angel Research
March
(` cr)
(%)
(` cr)
(`)
(`)
(%)
(%)
(x)
(x)
FY2018E
24,529
3.3
8757
13.6
129
1.1
8.5
25.3
2.7
FY2019E
29,832
3.6
13107
20.4
142
1.4
12.0
16.9
2.4
Source: Company, Angel Research
Aditya Birla Capital
Stock Info
CMP
174
Aditya Birla Capital (ABCL) is one of the most diversified financial services
TP
230
entities, with a presence in non-bank financing, asset management, housing
Upside
32%
finance, insurance and advisory businesses.
Sector
NBFC
ABFL (NBFC) business contributes highest value in our SOTP valuation. It has
Market Cap (` cr)
38,317
recorded a strong loan CAGR of 60% over FY12-17. Despite aggressive
Beta
0.7
growth in lending and migration to 90dpd for NPA recognition, GNPA has
52 Week High / Low
264/170
remained at ~1%. We believe ABFL would be able to continue to grow at 30%
CAGR over FY17-FY19.
3 year-Chart
We expect financialization of savings, increasing penetration in Insurance &
250
Mutual funds would ensure steady growth. Further, Banca tie-up with HDFC
200
Bank, DBS and LVB should restore insurance business. We recommend a Buy
150
rating on the stock, with a price target of `230.
100
50
Key Financials
Y/E
Op. Inc
PAT
EPS
ABV ROE
P/E
P/BV
-
March
(` cr)
(` cr)
(`)
(`)
(%)
(x)
(x)
FY2018E
1,544
794
3.5
37.1
11
50
4.7
FY2019E
2,233
12,00
5.1
48.5
11.5
34
3.6
Source: Company, Angel Research
Source: Company, Angel Research
Please refer to important disclosures at the end of this report (01 February 2018)
20
Union Budget 2018 -19 Review
Research Team Tel: 022 - 39357800
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL
and Portfolio Manager and investment advisor with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking
Private Limited is a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide
registration number INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory
authority for accessing /dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or
co-managed public offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information
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)
