Angel Top Picks - June 2017

The GDP data released for 4QFY17 reflects the impact of the demonetization on

Top Picks

the economy, primarily on construction, real estate and financial services. However

Company

CMP (`)

TP (`)

this impact is not expected to spill over into FY18E. We believe that GST is likely to

Banking/NBFC

show positive results from 2HFY18E and market in this anticipation is seeing strong

Dewan Housing

431

520

rally. We continue to maintain a positive view on economy and markets.

Karur Vysa Bank

127

160

Consumption

Demonetization impacts 4QFY17 GDP: India’s 4QFY17 GDP grew by 6.1% vs.

consensus of 7.1%. The full year FY17 GDP grew by 7.1% vs. revised FY16 GDP

Asian Granito

400

447

growth of 8%. The 4QFY17 gross valued added (GVA) was at 5.6%, vs. 3QFY17

Blue Star

643

760

GVA of 6.7% and 4QFY16 GVA of 8.7%. The softer 4Q numbers were mainly due

Siyaram Silk Mills

2117

2376

to slowdown in the construction, real estate and financial services affected the 4Q

Media

numbers. Overall, in FY17, government expenditure, public utilities, trade, hotel

Jagran Prakashan

182

225

and transport services were the main driver of GVA.

TV Today

268

344

Real Estate/Infra/Logistics/Power

The data for 4QFY17 clearly indicates that the economy struggled in the 4^th

KEI Industries

218

258

quarter, which was mainly due to demonetization. Our take on this is that the

numbers were expected to be soft for the 4^th quarter as 3^rd quarter of FY17 had not

Mahindra Lifespace

424

522

shown full impact of demonetization. Having said this, we also see a rebound in

Navkar Corp.

217

265

the automobile sales, which we treat as an indicator of recovery in the economy

Pharma

and consumption sector. Also considering a bumper crop production in FY17, we

Alkem Lab.

1,954

2,161

continue to believe that economy is expected to do well in FY18E. En route, a

Source: Angel Research;

Note: CMP as of June 5, 2017

temporary disruption in terms of GST implementation remains, however 2HFY18E

should support full year GDP numbers on the back of lower base and clarity over

the GST to the corporate.

Exhibit 1: GVA growth slows in 4QFY17

Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18

GVA at Basic Price % change

Source: MOSPI, Angel Research

Markets reach new high, macro story continues: As expected by us in May-2017

Top Picks note, Indian markets have continued to scale new highs over continued

inflows, reforms momentum and normal monsoon projections. While there was

concern regarding sustainability of valuations, it should be noted that the stock

prices have been going up gradually and sentiment is also constantly tested by

events like demonetization, Brexit, etc. In our opinion, this market rally is backed

by fundamentals like economic reforms, macro stability and anticipated revival in

corporate earnings and not just by the liquidity. We also believe that market is

taking the GST implementation positively which is driving the sentiment at the

moment. While it’s not expected to be a smooth ride, we expect 2HFY18E to be

much better as we will get more understanding GST and its impact.

Please refer to important disclosures at the end of this report

Top Picks Report | June 2017

4QFY17 results, a mixed bag, improvement expected in FY18E: The 4Q results of

India Inc have given mixed signals. The 4QFY17 was a one-off quarter due to the

demonetization and we do not expect large spillover of it into FY18E. Below is the

result review and FY18E outlook of the sectors that we track.

Exhibit 2:

Sector

Commentary

FY18E Outlook

Positive, key trigger is sustained growth in

FMCG

Volume and price growth witnessed in 4Q

consumption and normal monsoon forecast for

CY17

2W- Slower volume growth, lower realizations due to higher BS-III related

2W and PV positive year expected

discounts and lower margins due to higher RM costs.

CV - 1HFY18E sales volumes expected to be

Automobiles

PV - Premiumization continued, new launches driving the volumes, lower

subdued due to GST and BSIV transition,

realizations due to higher RM cots.

2HFY18E expected to be better than 1HFY18E

CV - Demand subdued due to the BSIV transition and demonetization.

Domestic growth expected to pick-up, exports to

Subdued results posted by the pharma companies due to pricing pressure and

US likely remain subdued as several facilities

Pharma

delayed launches in the US, on domestic turf, addition of drugs in price control

remain impacted due to USFDA observations,

list led to slower growth, regulatory environment remains tough in US.

select pharma companies to do well

Overall weak results but in line with expectations, guidance indicates better

Selectively positive on the sector

prospects for FY18E over FY17

Expect better year on likely RERA implementation

Realty

Sales recovering, sequential revenue / PAT growth at ~7-8% and ~9-10%

and realization of budgetary benefits.

Expect higher revenue growth on the back of

Sequential improvement in 4Q numbers on the back of better execution. Project

Construction

strong order book and sustained momentum in

awarding is gathering the momentum, order book growth expected

project awarding

Top seven private sector banks under our coverage have reported encouraging

Outlook for the private banks remains positive in

Banking

set of numbers. While the combined loan book grew by 14%, the PAT growth

the quarters to come.

was higher at 22% backed by 20% decline in provisions

Source: Angel Research

Overall, we view the recovery in FMCG, automobiles, construction and real

estate sectors as a positive sign for FY18E. The FY17 numbers in number of

sectors were influenced by demonetization and hence, with the expected

recovery in major sectors, FY18E numbers are likely to be better than that in

FY17.

Owing to this, we remain positive view on sectors like real estate (Mahindra

Lifespace, Asian Granito), BFSI (Karur Vysya Bank, Dewan Housing),

Consumption (Blue Star), etc. We also maintain positive view on Alkem,

Jagaran Prakashan, TV Today, etc.

June 6, 2017

Top Picks Report | June 2017

Stock Info

Dewan Housing

CMP

431

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

520

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

Upside

21%

expected to report 20% loan growth over next two three years.

Sector

Financials

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

Market Cap (` cr)

13,398

by it in DFHFL Pramerica Life Insurance Co Ltd which added `1969 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

455 / 186

growth for next 2-3 years.

 Lower cost of funds will help maintain NIM: DHFL has replaced high cost bank

3 year-Chart

loans with the NCDs raised and it will continue to reduce its dependence on

500

banks as its source of funding. This should help it maintain its NIM of 2.9%-

450

3.0%. The recent capital received via stake sale should also aid to the NIM.

400

350

 Outlook: We expect the company’s loan growth to remain 20% over next two

300

years and earnings growth also is likely to be more than 20%.The stock

250

currently trades at 1.5x FY2018E ABV. We maintain Buy on the stock, with a

200

150

target price of `520.

100

Key Financials

Y/E

Op. Inc

NIM

PAT

EPS

ABV

ROA

ROE

P/E

P/ABV

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017

2,050

2.9

923

29.5

189

1.2

16.3

14.6

2.3

Source: Company, Angel Research

FY2018E

2,500

2.9

1,145

36.6

281

1.2

14.8

11.8

1.5

Source: Company, Angel Research

Stock Info

Karur Vysa Bank

CMP

127

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

160

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

Upside

26%

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)

7,675

 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

128 / 80

we expect the asset quality to improve.

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

3 year-Chart

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

140

NIM is expected to improve further going ahead.

120

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

100

11% & 22% over FY2017-19E. The stock currently trades at 1.4x FY2019E

ABV. We recommend Buy on the stock, with a target price of `160.

Key Financials

Y/E

Op. Inc

NIM

PAT

EPS

ABV

ROA

ROE

P/E

P/ABV

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2018E

3,169

3.7

769

12.6

78.2

1.2

14.4

10.1

1.6

FY2019E

3,598

3.9

907

14.9

89.3

1.3

15.2

8.5

1.4

Source: Company, Angel Research

June 6, 2017

Top Picks Report | June 2017

Stock Info

Asian Granito

CMP

400

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

447

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

Upside

12%

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

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)

1,205

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

Beta

1.9

level (35% in FY16). It is expected to reach up to 50% in next 2-3 years on the

52 Week High / Low

408 / 165

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

450

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

350

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

300

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

250

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

200

150

 We expect AGIL to report a net revenue CAGR of ~8.5% to ~`1,169cr and

100

net profit CAGR of ~39% to `48cr over FY2016-18E. We recommend an

Accumulate 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)

Source: Company, Angel Research

FY2017

1,060

11.6

13.0

9.7

30.8

3.0

12.3

1.4

FY2018E

1,169

12.5

16.0

10.7

25.0

2.7

10.1

1.3

Source: Company, Angel Research

Stock Info

Blue Star

CMP

643

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

760

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

Upside

18%

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

Sector

Cons. Durable

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

last few quarters, resulting in the company consistently increasing its market

Market Cap (` cr)

6,143

share (~7% in FY2014 to 10.5% at present). This has resulted in the Cooling

Beta

0.8

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

52 Week High / Low

725 / 403

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

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

continue to drive growth.

3 year-Chart

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

800

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

700

from 5.3% in FY2015 to 7.3% in FY2018E. Moreover, the merger of Blue Star

600

Infotech has infused cash and strengthened the balance sheet. We

500

recommend a Buy rating on the stock.

400

300

Key Financials

200

Y/E

Sales

OPM

PAT

EPS

ROE

P/E

P/BV

EV/EBITDA

EV/Sales

100

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017

4,283

5.9

141

14.9

20.4

45.3

8.8

28.5

1.6

FY2018E

5,077

7.3

211

22.1

26.4

30.5

7.4

20.5

1.3

Source: Company, Angel Research

June 6, 2017

Top Picks Report | June 2017

Stock Info

Siyaram Silk Mills

CMP

2,117

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

2,376

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

Upside

12%

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)

1,990

 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

2,150/994

3,00,000 multi brand outlets in the country.

 Going forward, we expect SSML to report a net sales CAGR of ~4% to

3 year-Chart

~`1,948cr and adj.net profit CAGR of ~10% to `106cr over FY2016-18E on

2,500

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

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

recommendation on the stock and target price of `2,376.

1,000

500

Key Financials

Y/E

Sales

OPM

PAT

EPS

ROE

P/E

P/BV

EV/EBITDA

EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017

1,574

12.5

97.1

15.4

21.8

3.4

11.7

1.5

FY2018E

1,769

12.7

106

113.1

15.5

18.7

2.9

10.2

1.3

Source: Company, Angel Research

Stock Info

Jagran Prakashan

CMP

182

 We expect JPL to register a net sales CAGR of ~10% over FY2016-18E, on

225

back of (a) strong growth in advertising revenue due to improvement in GDP

Upside

24%

growth, and (b) improvement in circulation revenue owing to combination of

increase in cover price and volume growth.

Sector

Media

 Further the acquisition of Radio City would also boost the company's revenue

Market Cap (` cr)

5,960

going ahead. Radio City has ~20 stations across 7 states in the country and is

Beta

0.5

second only to ENIL in all its operating circles, ie Delhi, Mumbai, Bengaluru,

52 Week High / Low

213/162

Chennai, Ahmedabad, Hyderabad, Pune and Lucknow. The company covers

~51% (~66mn people) of the total radio population.

3 year-Chart

 Raw material prices have been in a declining trend. Thus, considering lower

250

news print costs, healthy sales, and higher margins in the radio business, we

expect an adj. net profit CAGR of ~10% over FY2016-18E to `400cr.

200

 Considering Dainik Jagran's strong presence in the rapidly growing Hindi

150

markets, we expect JPL to benefit from an eventual recovery in the Indian

100

economy. Hence, we maintain a Buy rating on the stock with a target price of

`225.

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

FY2017

2,283

28.0

348

10.6

21.4

17.1

3.7

9.3

2.6

FY2018E

2,555

28.0

400

12.2

21.4

14.9

3.2

8.2

2.3

Source: Company, Angel Research

June 6, 2017

Top Picks Report | June 2017

Stock Info

TV Today Network

CMP

268

 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

28%

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)

1,598

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 ~10% to ~`667cr and net

200

profit CAGR of

~10% to

`115cr over FY2016-18E. 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)

FY2017

608

21.5

15.7

16.1

17.1

2.6

8.5

2.2

Source: Company, Angel Research

FY2018E

667

22.3

115

19.2

16.0

13.9

2.2

6.9

1.9

Source: Company, Angel Research

Stock Info

KEI Industries

CMP

218

 Healthy order book indicates strong revenue visibility: KEI’s current order book

258

(OB) stands at `3,233cr (segmental break-up: `2,154cr in EPC, `667cr in

Upside

18%

Cable, `200cr in EHV, `49cr in Substation, rest in EPC L1 business). Its OB

Sector

Cable

grew by ~28% in the last 3 years due to strong order inflows from State

Electricity Boards, Power grid, etc.

Market Cap (` cr)

1,697

 Strengthening distribution network and higher ad Spend to increase B2C

Beta

1.3

business: KEI’s consistent effort to increase its retail business from 30% of

52 Week High / Low

238/ 94

revenue in FY16 to 40-45% of revenue in the next 2-3 years on the back of

strengthening distribution network (currently 926 which is expect to increase

3 year-Chart

`1,500 by FY19) and higher ad spend (increased from `2cr in FY13 to `7cr in

250

FY16 and expected to spend).

200

 Exports to continue its growth momentum: KEI’s export (FY16 - 8% of revenue)

is expected to reach a level of ~14-15% in next two years with higher order

150

execution from current OB of

~`180cr and participation in various

100

international tenders worth `500cr. We expect a strong ~26% growth CAGR

over FY2016-19 in exports. We expect KEI to report net revenue CAGR of

~13% to ~`3,392cr and net profit CAGR of ~26% to `124cr over FY2016-

19E. Hence 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

Source: Company, Angel Research

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017

2,633

10.4

12.7

21.4

17.1

3.0

7.3

0.7

FY2018E

3,001

10.0

100

13.0

18.2

16.8

2.5

6.5

0.6

Source: Company, Angel Research

June 6, 2017

Top Picks Report | June 2017

Stock Info

Mahindra Lifespace

CMP

424

 MLF has 13 projects under implementation across cities. MLF has exhibited

522

fast completion of projects compared to others. Sales cycle in ~65% of

Upside

23%

projects is faster than execution cycle, contrary to industry trends. This fast

Sector

Real Estate

execution and sales is optimal, as it helps MLF in revenue recognition,

inventory cycle (better than Oberoi, DLF), cash flows and profitability.

Market Cap (` cr)

2,178

 MLF as of 4QFY2016 is pursuing ~4.0mn sq. ft. of sale of the total ~15.0mn

Beta

0.9

sq. ft. of saleable area. Having sold ~60% of ongoing projects, we expect MLF

52 Week High / Low

493 / 319

to launch ~2.8mn sq.ft. of saleable area in rational way during 4QFY2016-

2QFY2018E, across 6 cities. Maturity at existing projects, new launches give better

3 year-Chart

revenue visibility for medium-term. Further, MLF is sitting on land bank of 11.0mn

600

sq.ft across 4 cities, which allay any concern over long-term revenue growth.

500

 With Real Estate Regulatory Bill closer to reality, MLF should be minimally

400

impacted, given their strong parentage and ethically implemented processes.

300

In the longer-term organized, professionally run, well funded players would

200

enjoy strong trust due to their reliable and fast execution strategies. With

100

improvement in company’s fundamentals, strong earnings growth visibility

and long-term growth outlook, at current valuations of 1.0x FY2017E P/BV,

MLF looks attractive. We maintain Buy on MLF with target price of `522.

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)

FY2017

1,152

22.7

29.9

7.6

14.9

1.1

10.4

2.3

FY2018E

1,300

24.6

138

35.8

8.6

12.4

1.0

7.5

1.9

Source: Company, Angel Research

Stock Info

Navkar

CMP

217

 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

22%

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)

3,091

 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

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

to capacity constraints at CFS.

200

 We expect NCL to successfully use its rail advantage and scale up its

150

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

100

Key Financials

Y/E

Sales

OPM

PAT

EPS

ROE

P/E

P/BV

EV/EBITDA

EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017

371

37.3

6.0

7.4

36.2

2.2

25.2

9.4

FY2018E

561

42.3

164

11.5

10.5

18.8

2.0

14.7

6.2

Source: Company, Angel Research

June 6, 2017

Top Picks Report | June 2017

Stock Info

Alkem Leboratories

CMP

1,954

 Alkem is 5^th largest pharma company is the domestic market. It has presence

2,161

in India, US and a few other countries. The 73% of its revenues come from the

Upside

11%

Indian markets while 20% come from the US and rest from the other countries.

Sector

Pharma

The company has leadership position in the anti infective segment in India and

it is ranked as no. 3 in Gastro-Intestinal and Pain/Analgesics segments.

Market Cap (` cr)

23,358

Overall it holds ~3.6% market share in the domestic formulations business

Beta

0.3

and ~7.9% share in overall prescriptions in country.

52 Week High / Low

2,238/ 1,334

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

a prominent player in acute segment but still an entrant in chronic segment. It

3 year-Chart

has aggressively hired sales force in last three years to increase its sales from

2,500

chronic segment. Alkem has a strong track record of growth in the domestic

2,000

market which is likely to continue. In the US, company is focusing on

monetization of its ANDA pipeline. As of March 2017, company has a pipeline

1,500

of 91 ANDAs of which 39 are approved. Company expects to launch ~7-8

1,000

ANDAs each year and improve its filing rate as well. Overall US revenues are

expected to grow at

~26% growth rate from FY17-FY19E. Alkem’s all

500

manufacturing facilities are current with USFDA.

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

CAGR in the bottom-line. We have 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

7,009

20.0

1,099

92.0

21.6

4.7

16.7

3.3

FY2019E

8,252

20.0

1,285 107.5

21.4

18.5

4.0

14.2

2.8

Source: Company, Angel Research

June 6, 2017

Top Picks Report | June 2017

Macro watch

Exhibit 3: Quarterly GDP trends

Exhibit 4: IIP trends

(%)

10.0

9.2

8.9

9.0

8.0

9.0

8.3

8.4

7.7

7.9

8.0

7.6

7.5

8.0

7.4

7.0

6.8

5.7

7.0

6.0

5.2

6.0

6.1

4.9

5.0

6.0

3.8

4.0

2.6

2.7

5.0

3.0

1.9

4.0

2.0

1.0

3.0

Source: CSO, Angel Research

Source: MOSPI, Angel Research

Exhibit 5: Monthly CPI inflation trends

Exhibit 6: Manufacturing and services PMI

56.0

Mfg. PMI

Services PMI

(%)

7.0

54.0

6.1

5.8

6.0

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

46.0

2.0

1.0

44.0

42.0

Source: MOSPI, Angel Research

Source: Market, Angel Research; Note: Level above 50 indicates expansion

Exhibit 7: Exports and imports growth trends

Exhibit 8: Key policy rates

(%)

Exports yoy growth

Imports yoy growth

(%)

Repo rate

Reverse Repo rate

CRR

60.0

7.00

50.0

6.50

40.0

6.00

30.0

5.50

20.0

5.00

10.0

4.50

0.0

4.00

(10.0)

(20.0)

3.50

(30.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

June 6, 2017

Top Picks Report

June 06, 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 )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Agri / Agri Chemical

Rallis

Neutral

252

4,892

1,937

2,164

13.3

14.3

9.0

11.0

28.0

22.9

4.9

4.3

18.4

19.8

2.6

2.3

United Phosphorus

Neutral

873

44,321

15,176

17,604

18.5

37.4

44.6

23.3

19.6

4.6

3.8

21.4

21.2

3.0

2.6

Auto & Auto Ancillary

Amara Raja Batteries

Buy

877

1,009

14,982

5,305

6,100

16.0

16.3

28.4

34.0

30.9

25.8

6.0

5.0

19.3

2.8

2.5

Apollo Tyres

Neutral

248

12,629

12,877

14,504

14.3

13.9

21.4

23.0

11.6

10.8

1.8

1.6

16.4

15.2

1.1

Ashok Leyland

Buy

111

26,467

20,021

21,915

11.6

11.9

4.5

5.3

20.7

17.5

4.2

3.8

20.6

21.5

1.3

1.1

Bajaj Auto

Neutral

2,901

83,937

25,093

27,891

19.5

19.2

143.9

162.5

20.2

17.9

5.7

4.9

30.3

29.4

3.1

2.7

Bharat Forge

Neutral

1,186

27,601

7,726

8,713

20.5

21.2

35.3

42.7

33.6

27.8

6.2

5.6

18.9

20.1

3.6

3.2

Ceat

Neutral

1,870

7,564

7,524

8,624

13.0

12.7

131.1

144.3

14.3

13.0

2.6

2.2

19.8

18.6

1.1

0.9

Eicher Motors

Neutral

29,326

79,830

16,583

20,447

17.5

18.0

598.0

745.2

49.0

39.4

16.8

12.8

41.2

38.3

4.6

3.7

Exide Industries

Neutral

227

19,325

7,439

8,307

15.0

8.1

9.3

28.1

24.5

3.9

3.5

14.3

16.7

2.2

2.0

Gabriel India

Neutral

137

1,974

1,544

1,715

9.0

9.3

5.4

6.3

25.4

21.8

4.8

4.3

18.9

19.5

1.2

1.1

Hero Motocorp

Neutral

3,827

76,418

28,083

30,096

15.3

15.7

171.8

187.0

22.3

20.5

7.8

6.5

30.1

27.9

2.5

2.3

Indag Rubber

Neutral

207

542

286

326

19.8

16.8

11.7

13.3

17.7

15.5

3.0

2.8

17.8

17.1

1.6

1.4

Jamna Auto Industries Neutral

264

2,102

1,486

1,620

9.8

9.9

15.0

17.2

17.6

15.3

3.9

3.3

21.8

21.3

1.5

1.3

JK Tyres

Neutral

176

3,989

7,455

8,056

15.0

21.8

24.5

8.1

7.2

1.7

1.4

22.8

21.3

0.7

0.6

L G Balakrishnan & Bros Neutral

737

1,157

1,302

1,432

11.6

11.9

43.7

53.0

16.9

13.9

2.4

2.2

13.8

14.2

1.0

0.9

Mahindra and Mahindra Neutral

1,423

88,409

46,534

53,077

11.6

11.7

67.3

78.1

21.2

18.2

3.4

3.0

15.4

15.8

1.9

1.6

Maruti

Neutral

7,127

215,280

67,822

83,288

16.0

16.4

253.8

312.4

28.1

22.8

6.5

5.2

23.0

22.9

2.8

2.2

Minda Industries

Neutral

626

5,408

2,728

3,042

9.0

9.1

68.2

86.2

9.2

7.3

2.1

1.7

23.8

24.3

2.0

1.8

Motherson Sumi

Neutral

455

63,805

45,896

53,687

7.8

8.3

13.0

16.1

34.9

28.2

11.2

9.0

34.7

35.4

1.5

1.2

Rane Brake Lining

Neutral

1,274

1,008

511

562

11.3

11.5

28.1

30.9

45.3

41.2

6.9

6.3

15.3

15.0

2.1

1.9

Setco Automotive

Neutral

538

741

837

13.0

15.2

17.0

2.7

2.4

0.4

15.8

16.3

1.1

1.0

Subros

Neutral

261

1,565

1,488

1,681

11.7

11.9

6.4

7.2

40.8

36.4

4.3

3.9

10.8

11.4

1.3

1.1

Swaraj Engines

Neutral

1,907

2,368

660

810

15.2

16.4

54.5

72.8

35.0

26.2

10.9

9.9

31.5

39.2

3.4

2.8

Tata Motors

Neutral

478

138,015

300,209

338,549

8.9

8.4

42.7

54.3

11.2

8.8

1.8

1.5

15.6

17.2

0.6

0.5

TVS Motor

Neutral

542

25,757

13,390

15,948

6.9

7.1

12.8

16.5

42.5

32.8

10.6

8.4

26.3

27.2

2.0

1.6

Capital Goods

ACE

Neutral

656

709

814

4.1

4.6

1.4

2.1

47.4

31.6

2.0

1.8

4.4

6.0

1.1

1.0

BEML

Neutral

1,239

5,158

3,451

4,055

6.3

9.2

31.4

57.9

39.5

21.4

2.4

2.2

6.3

10.9

1.6

1.4

BGR Energy

Neutral

161

1,159

16,567

33,848

6.0

5.6

7.8

5.9

20.6

27.2

1.2

1.1

4.7

4.2

0.2

0.1

Top Picks Report

June 06, 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 )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Capital Goods

Bharat Electronics

Neutral

170

37,972

8,137

9,169

16.8

17.2

58.7

62.5

2.9

2.7

0.5

0.4

44.6

46.3

3.6

3.3

BHEL

Neutral

140

34,205

28,797

34,742

2.8

2.3

6.9

60.8

20.3

1.0

1.3

4.8

0.8

0.6

Blue Star

Buy

643

760

6,143

4,283

5,077

5.9

7.3

14.9

22.1

43.2

29.0

8.4

7.1

20.4

26.4

1.5

1.2

CG Power and Industrial

Neutral

5,299

5,777

6,120

5.9

7.0

3.3

4.5

25.6

18.8

1.1

4.4

5.9

0.9

0.7

Solutions

Greaves Cotton

Neutral

160

3,901

1,755

1,881

16.8

16.9

7.8

8.5

20.5

18.8

4.1

3.8

20.6

20.9

1.9

1.7

Inox Wind

Neutral

142

3,159

5,605

6,267

15.7

16.4

24.8

30.0

5.7

4.8

1.6

1.2

25.9

24.4

0.6

0.5

KEC International

Neutral

266

6,844

9,294

10,186

7.9

8.1

9.9

11.9

26.9

22.4

3.9

3.4

15.6

16.3

1.0

0.9

KEI Industries

Buy

218

258

1,697

2,633

3,001

10.4

10.0

12.7

13.0

17.1

16.8

3.7

3.1

21.4

18.2

0.8

0.7

Thermax

Neutral

977

11,646

5,421

5,940

7.3

25.7

30.2

38.0

32.4

4.6

4.2

12.2

13.1

2.0

1.9

VATech Wabag

Neutral

678

3,701

3,136

3,845

8.9

9.1

26.0

35.9

26.1

18.9

3.3

2.8

13.4

15.9

1.1

0.9

Voltas

Neutral

495

16,379

6,511

7,514

7.9

8.7

12.9

16.3

38.4

30.4

6.9

6.1

16.7

18.5

2.3

1.9

Cement

ACC

Neutral

1,645

30,884

11,225

13,172

13.2

16.9

44.5

75.5

37.0

21.8

3.5

3.2

11.2

14.2

2.8

2.3

Ambuja Cements

Neutral

240

47,655

9,350

10,979

18.2

22.5

5.8

9.5

41.4

25.3

3.5

3.1

10.2

12.5

5.1

4.3

India Cements

Neutral

214

6,581

4,364

4,997

18.5

19.2

7.9

11.3

27.1

19.0

2.0

1.9

8.0

8.5

2.3

2.0

J K Lakshmi Cement

Neutral

498

5,858

2,913

3,412

14.5

19.5

7.5

22.5

66.4

22.1

4.1

3.4

12.5

18.0

2.6

2.2

JK Cement

Neutral

1,091

7,630

4,398

5,173

15.5

17.5

31.2

55.5

35.0

19.7

4.2

3.6

12.0

15.5

2.3

1.9

Orient Cement

Neutral

154

3,155

2,114

2,558

18.5

20.5

8.1

11.3

19.0

13.6

2.8

2.4

9.0

14.0

2.1

1.7

UltraTech Cement

Neutral

4,189

114,985

25,768

30,385

21.0

23.5

111.0

160.0

37.7

26.2

4.8

4.2

13.5

15.8

4.6

3.8

Construction

Engineers India

Neutral

159

10,704

1,725

1,935

16.0

19.1

11.4

13.9

11.4

1.9

13.4

15.3

5.1

4.6

Gujarat Pipavav Port

Neutral

147

7,126

705

788

52.2

51.7

5.0

5.6

29.5

26.3

2.9

2.6

11.2

9.8

8.2

ITNL

Neutral

102

3,339

8,946

10,017

31.0

31.6

8.1

9.1

12.5

11.2

0.5

4.2

5.0

3.7

3.4

KNR Constructions

Neutral

211

2,966

1,385

1,673

14.7

14.0

41.2

48.5

5.1

4.4

1.0

0.8

14.9

15.2

2.2

1.8

Larsen & Toubro

Neutral

1,805

168,423

111,017

124,908

11.0

61.1

66.7

29.5

27.0

3.6

3.3

13.1

12.9

2.6

2.3

MEP Infra

Neutral

1,500

1,877

1,943

30.6

29.8

3.0

4.2

30.8

22.0

14.9

10.0

0.6

2.2

2.0

Nagarjuna Const.

Neutral

4,845

8,842

9,775

9.1

8.8

5.3

6.4

16.4

13.6

1.3

1.2

8.2

9.1

0.7

0.6

NBCC

Neutral

201

18,104

7,428

9,549

7.9

8.6

8.2

11.0

24.5

18.3

1.2

1.0

28.2

28.7

2.2

1.6

PNC Infratech

Neutral

146

3,751

2,350

2,904

13.1

13.2

9.0

8.8

16.2

16.6

0.6

0.5

15.9

13.9

1.7

1.4

Power Mech Projects

Neutral

587

864

1,801

2,219

12.7

14.6

72.1

113.9

8.1

5.2

1.5

1.3

16.8

11.9

0.5

0.4

Sadbhav Engineering

Neutral

317

5,430

3,598

4,140

10.3

10.6

9.0

11.9

35.2

26.6

3.7

3.2

9.9

11.9

1.8

1.5

Top Picks Report

June 06, 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 )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Construction

Simplex Infra

Neutral

465

2,299

6,829

7,954

10.5

31.4

37.4

14.8

12.4

1.5

1.4

9.9

13.4

0.8

0.6

SIPL

Neutral

109

3,823

1,036

1,252

65.5

66.2

(8.4)

(5.6)

4.1

4.6

(22.8)

(15.9)

11.9

9.9

Financials

Axis Bank

Accumulate

513

580

122,965

46,932

53,575

3.5

3.4

32.4

44.6

15.9

11.5

2.0

1.8

13.6

16.5

Bank of Baroda

Neutral

179

41,198

19,980

23,178

1.8

11.5

17.3

15.6

10.3

1.8

1.5

8.3

10.1

Can Fin Homes

Neutral

2,776

7,390

420

526

3.5

86.5

107.8

32.1

25.8

6.9

5.7

23.6

24.1

Canara Bank

Neutral

363

21,673

15,225

16,836

1.8

14.5

28.0

25.0

13.0

1.7

1.4

5.8

8.5

Cholamandalam Inv. &

Buy

1,046

1,230

16,353

2,012

2,317

6.3

42.7

53.6

24.5

19.5

3.9

3.3

16.9

18.3

Fin. Co.

Dewan Housing Finance Buy

431

520

13,498

2,225

2,688

2.9

29.7

34.6

14.5

12.5

2.3

1.5

16.1

14.8

Equitas Holdings

Buy

160

235

5,411

939

1,281

11.7

11.5

5.8

8.2

27.6

19.5

2.4

2.1

10.9

11.5

Federal Bank

Accumulate

114

125

19,674

8,259

8,995

3.0

4.3

5.6

26.5

20.4

2.2

2.1

8.5

10.1

HDFC

Neutral

1,606

255,245

11,475

13,450

3.4

45.3

52.5

35.5

30.6

6.8

6.0

20.2

20.5

HDFC Bank

Neutral

1,636

420,194

46,097

55,433

4.5

58.4

68.0

28.0

24.1

4.9

4.1

18.8

18.6

ICICI Bank

Neutral

320

186,283

42,800

44,686

3.1

3.3

18.0

21.9

17.8

14.6

2.4

2.2

11.1

12.3

Karur Vysya Bank

Accumulate

127

140

7,675

5,640

6,030

3.3

3.2

8.9

10.0

14.3

12.7

1.5

1.4

11.2

11.4

Lakshmi Vilas Bank

Neutral

189

3,620

3,339

3,799

2.7

2.8

11.0

14.0

17.2

13.5

1.8

1.6

11.2

12.7

LIC Housing Finance

Neutral

739

37,277

3,712

4,293

2.6

2.5

39.0

46.0

18.9

16.1

3.6

3.0

19.9

20.1

Punjab Natl.Bank

Neutral

153

32,622

23,532

23,595

2.3

2.4

6.8

12.6

22.5

12.2

3.5

2.5

3.3

6.5

RBL Bank

Neutral

544

20,446

1,783

2,309

2.6

12.7

16.4

42.8

33.1

4.7

4.2

12.8

13.3

Repco Home Finance

Accumulate

779

825

4,870

388

457

4.5

4.2

30.0

38.0

26.0

20.5

4.3

3.6

18.0

19.2

South Ind.Bank

Neutral

5,140

6,435

7,578

2.5

2.7

3.1

10.6

9.2

1.4

1.1

10.1

11.2

St Bk of India

Neutral

287

233,037

88,650

98,335

2.6

13.5

18.8

21.3

15.3

2.0

1.8

7.0

8.5

Union Bank

Neutral

160

11,030

13,450

14,925

2.3

25.5

34.5

6.3

4.7

0.9

0.8

7.5

10.2

Yes Bank

Neutral

1,520

69,460

8,978

11,281

3.3

3.4

74.0

90.0

20.5

16.9

3.9

3.3

17.0

17.2

FMCG

Akzo Nobel India

Neutral

1,788

8,575

2,955

3,309

13.3

13.7

57.2

69.3

31.3

25.8

10.2

8.6

32.7

33.3

2.7

2.4

Asian Paints

Neutral

1,162

111,464

17,128

18,978

16.8

16.4

19.1

20.7

60.8

56.1

21.2

20.0

34.8

35.5

6.4

5.8

Britannia

Neutral

3,639

43,671

9,594

11,011

14.6

14.9

80.3

94.0

45.3

38.7

18.6

14.4

41.2

4.4

3.8

Colgate

Neutral

1,021

27,760

4,605

5,149

23.4

23.8

26.9

42.9

37.9

23.7

18.6

64.8

66.8

6.0

5.3

Dabur India

Accumulate

286

304

50,371

8,315

9,405

19.8

20.7

8.1

9.2

35.3

31.1

9.8

8.2

31.6

31.0

5.7

5.0

GlaxoSmith Con*

Neutral

5,406

22,737

4,350

4,823

21.2

21.4

179.2

196.5

30.2

27.5

8.0

6.8

27.1

26.8

4.6

4.1

Top Picks Report

June 06, 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 )

FY17E FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FMCG

Godrej Consumer

Neutral

1,815

61,814

10,235

11,428

18.4

18.6

41.1

44.2

41.1

9.8

8.3

24.9

24.8

6.1

5.4

HUL

Neutral

1,098

237,570

35,252

38,495

17.8

20.7

22.4

53.2

49.0

50.8

43.6

95.6

88.9

6.6

6.0

ITC

Neutral

318

385,679

40,059

44,439

38.3

39.2

9.0

10.1

35.4

31.3

9.9

8.6

27.8

27.5

9.1

8.2

Marico

Neutral

324

41,798

6,430

7,349

18.8

19.5

6.4

7.7

50.6

42.1

15.3

12.9

33.2

32.5

6.3

5.5

Nestle*

Neutral

6,725

64,837

10,073

11,807

20.7

21.5

124.8

154.2

53.9

43.6

22.1

19.9

34.8

36.7

6.2

5.3

Procter & Gamble

Neutral

7,736

25,113

2,939

3,342

23.2

23.0

146.2

163.7

52.9

47.3

13.4

11.1

25.3

23.5

8.1

7.0

Hygiene

Tata Global

Neutral

155

9,779

8,675

9,088

9.8

7.4

8.2

20.9

18.9

1.7

1.6

7.9

8.1

1.0

HCL Tech^

Buy

858

1,014

122,457

46,723

52,342

22.1

20.9

60.0

62.8

14.3

13.7

3.6

3.1

25.3

22.4

2.4

2.0

Infosys

Buy

960

1,179

220,553

68,484

73,963

26.0

63.0

64.0

15.2

15.0

3.2

2.9

20.8

19.7

2.9

2.5

TCS

Neutral

2,601

512,518

117,966

127,403

27.5

27.6

134.3

144.5

19.4

18.0

5.8

5.4

29.8

29.7

4.0

3.7

Tech Mahindra

Buy

403

533

39,248

29,141

31,051

14.4

15.0

32.3

35.6

12.5

11.3

2.1

1.9

17.1

17.0

1.2

1.1

Wipro

Neutral

556

135,175

55,421

58,536

20.3

35.1

36.5

15.8

15.2

2.7

2.4

19.2

14.6

1.9

1.6

Media

D B Corp

Neutral

370

6,809

2,297

2,590

27.4

28.2

21.0

23.4

17.6

15.8

4.1

3.6

23.7

23.1

2.8

2.4

Hindustan Media

Neutral

281

2,059

1,016

1,138

24.3

25.2

27.3

30.1

10.3

9.3

2.0

1.7

16.2

15.8

1.4

1.2

Ventures

HT Media

Neutral

1,884

2,693

2,991

12.6

12.9

7.9

9.0

10.3

9.0

0.9

0.8

7.8

8.3

0.3

0.2

Jagran Prakashan

Buy

182

225

5,960

2,283

2,555

28.0

10.6

12.3

17.1

14.9

3.7

3.2

21.4

2.6

2.3

Sun TV Network

Neutral

840

33,091

2,850

3,265

70.1

71.0

26.2

30.4

32.1

27.6

8.2

7.2

24.3

25.6

11.2

9.6

TV Today Network

Buy

268

344

1,598

608

667

21.5

22.3

15.7

19.2

17.1

13.9

2.6

2.2

16.1

16.0

2.2

1.9

Metals & Mining

Coal India

Neutral

264

164,062

84,638

94,297

21.4

22.3

24.5

27.1

10.8

9.8

4.5

4.3

42.6

46.0

1.5

1.3

Hind. Zinc

Neutral

234

98,978

14,252

18,465

55.9

48.3

15.8

21.5

14.8

10.9

2.4

2.1

17.0

20.7

6.9

5.4

Hindalco

Neutral

197

44,194

107,899

112,095

7.4

8.2

9.2

13.0

21.4

15.2

1.0

4.8

6.6

0.9

JSW Steel

Neutral

191

46,048

53,201

58,779

16.1

16.2

130.6

153.7

1.5

1.2

0.2

14.0

14.4

1.6

1.4

NMDC

Neutral

113

35,625

6,643

7,284

44.4

47.7

7.1

7.7

15.9

14.6

1.4

1.3

8.8

9.2

3.1

2.8

SAIL

Neutral

23,603

47,528

53,738

(0.7)

2.1

(1.9)

2.6

22.0

0.6

(1.6)

3.9

1.4

1.2

Tata Steel

Neutral

491

47,706

121,374

121,856

7.2

8.4

18.6

34.3

26.4

14.3

1.7

1.5

6.1

10.1

1.0

Vedanta

Neutral

229

85,272

71,744

81,944

19.2

21.7

13.4

20.1

17.1

11.4

1.5

1.3

8.4

11.3

1.6

1.2

Oil & Gas

GAIL

Neutral

398

67,297

56,220

65,198

9.3

10.1

27.1

33.3

14.7

12.0

1.3

9.3

10.7

1.4

1.2

Indian Oil Corp

Neutral

422

204,943

373,359

428,656

5.9

5.5

54.0

59.3

7.8

7.1

1.2

1.1

16.0

15.6

0.7

0.6

ONGC

Neutral

176

225,223

137,222

152,563

15.0

21.8

19.5

24.1

9.0

7.3

0.8

0.7

8.5

10.1

1.9

1.7

Top Picks Report

June 06, 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 )

FY17E FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Oil & Gas

Reliance Industries

Neutral

1,329

432,083

301,963

358,039

12.1

12.6

87.7

101.7

15.2

13.1

1.6

1.4

10.7

11.3

1.9

1.6

Pharmaceuticals

Alembic Pharma

Buy

547

648

10,317

3,101

3,966

19.7

20.5

21.4

25.5

25.6

21.5

5.4

4.4

23.0

22.8

3.3

2.4

Alkem Laboratories Ltd

Accumulate

1,954

2,161

23,358

5,853

6,901

17.1

18.4

74.6

85.0

26.2

23.0

5.5

4.6

21.1

20.2

4.0

3.4

Aurobindo Pharma

Buy

593

823

34,740

14,845

17,086

21.5

22.1

39.4

44.7

15.1

13.3

3.7

2.9

27.6

24.7

2.5

2.1

Aventis*

Neutral

4,041

9,306

2,206

2,508

16.6

16.8

128.9

139.9

31.4

28.9

5.4

4.2

21.6

23.5

4.0

3.3

Cadila Healthcare

Neutral

491

50,215

9,220

11,584

18.4

20.3

14.5

18.7

33.8

26.2

7.2

5.9

23.5

24.6

5.8

4.4

Cipla

Reduce

534

465

42,955

15,378

18,089

15.7

16.8

19.3

24.5

27.7

21.8

3.2

2.9

12.3

13.9

3.0

2.5

Dishman Pharma

Sell

301

143

4,859

1,718

1,890

22.7

22.8

9.5

11.3

31.7

26.6

3.1

2.8

10.1

10.9

3.3

2.9

Dr Reddy's

Neutral

2,535

41,998

14,081

15,937

16.1

18.6

72.6

105.9

34.9

23.9

3.4

3.1

9.6

13.6

3.2

2.8

GSK Pharma*

Neutral

2,469

20,916

2,927

3,290

11.8

16.2

34.4

49.6

71.8

49.8

10.4

10.8

13.9

21.3

6.9

6.2

Indoco Remedies

Buy

197

240

1,814

1,112

1,289

16.2

18.2

11.6

16.0

17.0

12.3

2.7

2.3

17.0

20.1

1.8

1.5

Ipca labs

Buy

511

613

6,451

3,258

3,747

12.8

15.3

12.1

19.2

42.3

26.6

2.6

2.4

6.4

9.5

2.1

1.8

Lupin

Buy

1,159

1,809

52,334

15,912

18,644

26.4

26.7

58.1

69.3

19.9

16.7

3.9

3.2

21.4

20.9

3.4

2.7

Natco Pharma

Accumulate

966

1,060

16,836

2,065

1,988

33.1

33.7

27.9

25.7

34.6

37.6

10.1

8.6

29.2

22.9

8.2

8.3

Sun Pharma

Buy

512

847

122,937

31,129

35,258

32.0

32.9

30.2

35.3

17.0

14.5

2.8

2.3

20.0

20.1

3.5

2.9

Power

NTPC

Neutral

163

134,030

86,605

95,545

17.5

20.8

11.8

13.4

13.8

12.1

1.4

1.3

10.5

11.1

2.9

Power Grid

Accumulate

205

223

107,300

25,315

29,193

88.2

88.7

14.2

17.2

14.5

12.0

2.2

1.9

15.2

16.1

8.9

8.0

Tata Power

Neutral

21,909

36,916

39,557

17.4

27.1

5.1

6.3

15.9

12.9

1.4

1.3

9.0

10.3

1.6

1.4

Real Estate

MLIFE

Buy

424

522

2,178

1,152

1,300

22.7

24.6

29.9

35.8

14.2

11.9

1.1

1.0

7.6

8.6

2.6

2.2

Prestige Estate

Neutral

253

9,476

4,707

5,105

25.2

26.0

10.3

13.0

24.5

19.4

2.0

1.8

10.3

10.2

3.2

2.8

Telecom

Bharti Airtel

Neutral

372

148,843

105,086

114,808

34.5

34.7

12.2

16.4

30.5

22.7

2.1

1.9

6.8

8.4

2.3

2.0

Idea Cellular

Neutral

29,405

40,133

43,731

37.2

37.1

6.4

6.5

12.7

12.6

1.1

1.0

8.2

7.6

1.8

1.5

zOthers

Abbott India

Neutral

4,209

8,944

3,153

3,583

14.1

14.4

152.2

182.7

27.7

23.0

135.8

116.0

25.6

26.1

2.5

2.2

Asian Granito

Accumulate

400

447

1,205

1,066

1,169

11.6

12.5

13.0

16.0

30.8

25.1

3.0

2.7

9.5

10.7

1.4

1.3

Bajaj Electricals

Accumulate

357

395

3,617

4,801

5,351

5.7

6.2

10.4

13.7

34.3

26.1

4.2

3.8

12.4

14.5

0.8

0.7

Banco Products (India)

Neutral

224

1,600

1,353

1,471

12.3

12.4

14.5

16.3

15.4

13.7

21.3

19.2

14.5

14.6

1.1

120.7

Coffee Day Enterprises

Neutral

247

5,094

2,964

3,260

20.5

21.2

4.7

8.0

30.9

2.9

2.6

5.5

8.5

2.1

1.9

Ltd

Competent Automobiles Neutral

202

129

1,137

1,256

3.1

2.7

28.0

23.6

7.2

8.6

38.8

35.1

14.3

11.5

0.1

Elecon Engineering

Neutral

724

1,482

1,660

13.7

14.5

3.9

5.8

16.6

11.1

3.9

3.6

7.8

10.9

0.8

0.7

Top Picks Report

June 06, 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 )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

zOthers

Finolex Cables

Neutral

506

7,733

2,883

3,115

12.0

12.1

14.2

18.6

35.6

27.2

18.9

16.6

15.8

14.6

2.4

2.2

Garware Wall Ropes

Neutral

819

1,793

863

928

15.1

15.2

36.4

39.4

22.5

20.8

4.1

3.5

17.5

15.9

2.0

1.8

Goodyear India*

Neutral

851

1,963

1,598

1,704

10.4

10.2

49.4

52.6

17.2

16.2

79.5

69.8

18.2

17.0

0.9

129.8

Hitachi

Neutral

2,131

5,795

2,081

2,433

8.8

8.9

33.4

39.9

63.8

53.4

51.5

42.9

22.1

21.4

2.8

2.3

HSIL

Neutral

342

2,475

2,384

2,515

15.8

16.3

15.3

19.4

22.4

17.7

22.2

19.1

7.8

9.3

1.2

1.1

Interglobe Aviation

Neutral

1,135

41,023

21,122

26,005

14.5

27.6

110.7

132.1

10.3

8.6

61.4

43.8

168.5

201.1

1.9

1.5

Jyothy Laboratories

Neutral

368

6,686

1,440

2,052

11.5

13.0

8.5

10.0

43.3

36.8

10.5

9.7

18.6

19.3

4.9

3.4

Kirloskar Engines India

Neutral

388

5,604

2,554

2,800

9.9

10.0

10.5

12.1

36.9

32.0

15.4

14.6

10.7

11.7

1.8

1.6

Ltd

Linc Pen & Plastics

Neutral

269

398

382

420

9.3

9.5

13.5

15.7

20.0

17.1

3.4

3.0

17.1

17.3

1.1

1.0

M M Forgings

Neutral

609

736

546

608

20.4

20.7

41.3

48.7

14.8

12.5

83.5

73.9

16.6

17.0

1.2

1.1

Manpasand Bever.

Neutral

799

4,572

836

1,087

19.6

19.4

16.9

23.8

47.3

33.6

5.7

5.0

12.0

14.8

5.2

3.9

Mirza International

Neutral

143

1,717

963

1,069

17.2

18.0

6.1

7.5

23.3

19.0

3.6

3.0

15.0

15.7

2.0

1.8

MT Educare

Neutral

260

366

417

17.7

18.2

9.4

10.8

7.0

6.1

1.6

1.4

22.2

22.3

0.6

0.5

Narayana Hrudaya

Neutral

335

6,851

1,873

2,166

11.5

11.7

2.6

4.0

126.8

84.6

7.8

7.0

6.1

8.3

3.8

3.2

Navkar Corporation

Buy

217

265

3,091

347

371

43.2

37.3

6.7

6.0

32.5

36.2

2.2

2.0

6.2

10.6

10.0

9.4

Navneet Education

Neutral

185

4,323

1,062

1,147

24.0

6.1

6.6

30.4

27.9

6.2

5.5

20.6

19.8

4.2

3.8

Nilkamal

Neutral

2,085

3,112

1,995

2,165

10.7

10.4

69.8

80.6

29.9

25.9

119.2

103.5

16.6

16.5

1.6

1.4

Page Industries

Neutral

14,485

16,157

2,450

3,124

20.1

17.6

299.0

310.0

48.5

46.7

322.6

246.3

47.1

87.5

6.6

5.2

Parag Milk Foods

Neutral

238

2,001

1,919

2,231

9.3

9.6

9.5

12.9

25.2

18.4

3.9

3.2

15.5

17.5

1.2

1.0

Quick Heal

Neutral

216

1,516

408

495

27.3

27.0

7.7

8.8

27.9

24.6

2.6

9.3

10.6

2.9

2.4

Radico Khaitan

Buy

124

147

1,649

1,667

1,824

13.0

13.2

6.7

8.2

18.6

15.1

1.7

1.5

9.0

10.2

1.4

1.2

Relaxo Footwears

Neutral

491

5,902

2,085

2,469

9.2

8.2

7.6

8.0

65.0

61.8

25.2

21.5

17.9

18.8

2.9

2.5

S H Kelkar & Co.

Neutral

281

4,062

1,036

1,160

15.1

15.0

6.1

7.2

46.0

39.1

4.9

4.5

10.7

11.5

3.8

3.3

Siyaram Silk Mills

Accumulate

2,117

2,376

1,984

1,574

1,769

12.5

12.7

97.1

113.1

21.8

18.7

3.4

2.9

15.4

15.5

1.5

1.3

Styrolution ABS India*

Neutral

777

1,366

1,440

1,537

9.2

9.0

40.6

42.6

19.1

18.2

48.9

44.4

12.3

11.6

0.9

0.8

Surya Roshni

Neutral

289

1,265

3,342

3,625

7.8

7.5

17.3

19.8

16.7

14.6

31.7

25.5

10.5

10.8

0.6

Team Lease Serv.

Neutral

1,200

2,052

3,229

4,001

1.5

1.8

22.8

32.8

52.7

36.5

5.7

4.9

10.7

13.4

0.5

0.4

The Byke Hospitality

Neutral

190

760

287

384

20.5

7.6

10.7

24.9

17.7

5.2

4.2

20.7

23.5

2.7

2.0

Transport Corporation of

Neutral

329

2,516

2,671

2,911

8.5

8.8

13.9

15.7

23.7

21.0

3.2

2.9

13.7

13.8

1.0

India

Top Picks Report

June 06, 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 )

FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E

zOthers

TVS Srichakra

Neutral

4,050

3,101

2,304

2,614

13.7

13.8

231.1

266.6

17.5

15.2

455.0

358.3

33.9

29.3

1.3

1.2

UFO Moviez

Neutral

378

1,044

619

685

33.2

33.4

30.0

34.9

12.6

10.9

1.8

1.5

13.8

13.9

1.4

1.1

Visaka Industries

Neutral

416

660

1,051

1,138

10.3

10.4

21.0

23.1

19.8

18.0

53.3

49.9

9.0

9.2

0.9

0.8

VRL Logistics

Neutral

327

2,987

1,902

2,119

16.7

16.6

14.6

16.8

22.5

19.5

4.9

4.3

21.9

22.2

1.7

1.5

Wonderla Holidays

Neutral

371

2,096

287

355

38.0

40.0

11.3

14.2

32.8

26.1

4.7

4.1

21.4

23.9

7.0

5.7

VIP Industries

Accumulate

199

218

2,808

1,270

1,450

10.4

5.6

6.5

35.5

30.6

7.4

6.4

20.7

21.1

2.2

1.9

Navin Fluorine

Buy

3,063

3,650

2,999

789

945

21.1

22.4

120.1

143.4

25.5

21.4

4.1

3.5

17.8

18.5

3.7

3.0

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on June 05, 2017

Top Picks Report | June 2017

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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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)

June 6, 2017