Angel Top Picks - March 2017
The 3Q GDP growth indicates very little impact of demonetization on the economy.
Top Picks
While note ban impacted a few sectors, broader economy is likely to recover
Company
CMP (`)
TP (`)
earlier than estimated which will help to improve the sentiment.
Banking/NBFC
Dewan Housing
325
350
3Q GDP growth surprises positively: Indian economy grew by 7% in 3QFY17 vs.
Equitas Holdings
174
235
7.4% in 2QFY17. The December quarter GDP growth indicates slower growth
Consumption
compared to September quarter, however this has positively surprised the markets
considering pessimistic GDP growth expectations of 6.1%-6.4% growth rate had
Amara Raja
848
1,009
built up. At 7% rate, our economy continues to grow at a healthy rate and remains
Asian Granito
280
351
a bright spot in the global economy.
Bajaj Electricals
258
274
Blue Star
567
634
Early recovery in sight: With the currency supply normalizing; domestic economy is
Mirza International
89
107
likely to recover faster than expected. The automobile sales in Feb-2017 showed
Siyaram Silk Mills
1,693
1,872
that the consumer sentiment is improving. This we believe is signaling that
IT
consumer demand is recovering. Our belief further strengthens from the
HCL Tech
853
1,000
commentary provided by the consumer oriented companies showing near normal
business activity after some pain in 3Q. There is an ample scope to believe that
Infosys
1,031
1,249
overall business environment will improve significantly in 4Q and GDP growth will
Media
also be better than initial estimates of sub 7% growth. This makes a good case for
Jagran Prakashan
190
225
upgrade in the corporate earnings as well. Anticipating the same, combined FII
TV Today
260
344
and DII inflows in the Indian equities have reached 22 month highs.
Real Estate/Infra/Logistics/Power
KEI Industries
172
207
Exhibit 1: FII+DII combined inflows in Indian equities
Larsen & Toubro
1,469
1,634
12,000
Mahindra Lifespace
345
522
Navkar Corp.
162
265
10,000
Powr Grid Corporation
191
223
8,000
Pharma
6,000
Alkem Lab.
2,139
2,257
4,000
Lupin
1,471
1,809
2,000
Source: Angel Research;
Note: CMP as of March 3, 2017
0
(2,000)
(4,000)
Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Source: Angel Research
GST implementation from July 2017: The 3Q GDP growth number indicates how
our formal sector will perform when growth drivers are intact. With the major
hurdles cleared and GST implementation likely from July-2017, formal sector is
likely to gain further. In our opinion, once fully implemented, GST will help the
economy to grow by 7%-8% rate over next several years. This is a very important
structural change that is going to happen in the economy and markets will remain
optimistic of impact of GST implementation on economy
On this backdrop, we continue to remain positive on our Top Picks portfolio. We
retain Jagaran Prakashan as the company is likely to see value unlocking through
upcoming MBL IPO. We also maintain positive stance on Lupin and Alkem over
their strong fundamentals and growth expectations. The IT space (Infosys and HCL
Tech) remains attractive due to their lower valuations. The push to the housing
sector announced in the budget will be positive for stocks such as Asian Granito,
Dewan Housing and Mahindra Lifespace while Blue Star, KEI Industries are likely
to benefit with recovery in the economy.
Please refer to important disclosures at the end of this report
1
Top Picks Report | March 2017
Top Picks
March 6, 2017
2
Top Picks Report | March 2017
Stock Info
Dewan Housing
CMP
325
3rd largest private sector housing finance company: We expect DHFL’s AUM to
TP
350
grow at a CAGR of 21% over FY2016-18, as demand for housing in the middle
Upside
8.0%
and low income group picks up, while PAT CAGR is expected to be 23%.
Sector
Financials
Seasoned and granular loan book with stable asset quality: Individual
Market Cap (` cr)
10,159
borrowers account for 69%, while the high yielding loan against property (LAP)
and projects loans account for 15.6% and 12.5% of advances respectively. Despite
Beta
1.6
strong loan growth, the GNPAs and NNPAs are likely to be at ~1.17% and 0.82%,
52 Week High / Low
339 / 163
respectively, for FY2017. We don’t expect any major deterioration in the asset
quality going ahead.
3 year-Chart
Lower cost of funds will help maintain NIM: DHFL has replaced high cost bank
400
loans with the NCDs raised and it will continue to reduce its dependence on
350
banks as its source of funding. This should help it maintain its NIM of 2.9%.
300
250
Outlook: We expect the company to post a healthy loan book CAGR of 21%
200
over FY2015-18E, which is likely to translate in earnings CAGR of 23%, over
150
the same period. The stock currently trades at 1.5x FY2018E ABV. We maintain
100
ACCUMULATE on the stock, with a target price of `350.
50
-
Key Financials
Y/E
Op. Inc NIM
PAT
EPS
ABV ROA ROE P/E P/ABV
March
(` cr)
(%)
(` cr)
(`)
(`)
(%)
(%)
(x)
(x)
Source: Company, Angel Research
FY2017E
2,050
2.9
923
29.5
189
1.2
16.3
11.0
1.7
FY2018E
2,500
2.9
1,145
36.6
219
1.2
16.9
8.9
1.5
Source: Company, Angel Research
Stock Info
Equitas Holdings
CMP
174
Early mover advantage in the SFB category: Equitas was one of the ten NBFCs
TP
235
to get the license to start a small finance bank (SFB). As the entire book of
Upside
25.0%
Equitas qualifies for PSL, meeting the 75% PSL target will not be a challenge.
Sector
Financials
Sizeable and diversified loan book should help in decent growth in the years
to come.
Market Cap (` cr)
5,867
Asset quality and return ratios are likely to remain stable: The recent quarter
Beta
0.9
saw some slowdown due to demonetization, however having converted into
52 Week High / Low
206 / 134
SFB the long term outlook has improved for it. We don’t expect any major
deterioration in the asset quality going ahead.
3 year-Chart
NIM likely to remain healthy: After conversion to SFB the company has started
250
raising deposits at a lower cost vs borrowings leading to better cost of funds.
200
Hence we expect the NIM to remain strong at ~11%, going ahead.
150
Outlook: We expect the company to post a strong loan book & earnings
CAGR of 38% & 37% over FY2016-18E. The stock currently trades at 2.3x
100
FY2018E ABV. We maintain Buy on the stock, with a target price of `235.
50
Key Financials
-
Y/E
Op. Inc NIM
PAT
EPS
ABV ROA ROE P/E P/ABV
March
(` cr)
(%)
(` cr)
(`)
(`)
(%)
(%)
(x)
(x)
FY2017E
9,39
11.7
224
5.8
68.2
2.8
10.9
30.0
2.6
Source: Company, Angel Research
FY2018E
1,281
11.5
315
8.2
77.6
2.8
11.5
21.2
2.3
Source: Company, Angel Research
March 6, 2017
3
Top Picks Report | March 2017
Stock Info
Amara Raja Batteries
CMP
848
Amara Raja Batteries Ltd (ARBL) is the second largest lead acid storage battery
TP
1,009
manufacturer in the country. It has been outpacing market leader Exide (ARBL
Upside
19%
grew at a 21% CAGR over FY2010-16 as compared to standalone Exide's
growth of 7%), leading to its market share improving from 25% in FY10 to
Sector
Auto Ancillary
about 35% currently. ARBL's outperformance has been mainly on back of its
Market Cap (` cr)
14,487
association with global battery leader Johnson Controls Inc (which also holds
Beta
0.9
26% stake in ARBL) for manufacturing ducts.
52 Week High / Low
1,077 / 821
With the automotive OEMs following a policy of having multiple vendors and with
ARBL’s products enjoying a strong brand recall in the replacement segment, the
3 year-Chart
company is well poised to gain further market share. Given the economic recovery
1,200
and market share gains, the company is expected to grow at a CAGR of 16.5%
over FY17E-FY19Ethe next two years as against industry growth of 10-12%.
1,000
800
ARBL is a well diversified auto ancillary player having presence across the
automotive and the industrial segment. It has a broad OEM as well as
600
replacement customer base. We believe ARBL is a high quality stock to play
400
the auto sector revival. We maintain our Buy rating on the stock.
200
Key Financials
-
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
5,305
16.0
485
28.4
19.3
29.9
5.8
17.1
2.7
Source: Company, Angel Research
FY2018E
6,100
16.3
581
34.0
19.3
24.9
4.8
14.5
2.4
Source: Company, Angel Research
Stock Info
Asian Granito
CMP
280
AGIL’s current, vitrified sales (35%) are lower as compared to its peers like
TP
351
Somany Ceramics (47%) and Kajaria Ceramics (61%). Recently, AGIL has
Upside
26%
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
Ceramics
product sales, which is a high margin business.
Market Cap (` cr)
840
AGIL is continuously putting efforts to increase the B2C sales from the current
Beta
1.4
level (35% in FY16). It is expected to reach up to 50% in next 2-3 years on the
52 Week High / Low
304 / 136
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
350
profile. Going forward, we expect the company to improve its operating
300
margin from 7.5% in FY16 (excluding merger) to 12-12.5% in coming
250
financial year. Artisique Ceramics has a contract with RAS GAS to supply
200
quality natural gas at a discounted rate of 50% to current market rate, which
150
would reduce the overall power & fuel cost of the company.
100
We expect AGIL to report a net revenue CAGR of ~8.5% to ~`1,169cr and
50
net profit CAGR of ~39% to `48cr over FY2016-18E. We have a Buy rating
-
on the stock and target price of `351.
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)
FY2017E
1,060
12.2
38
12.7
9.5
22.1
2.1
8.9
1.1
FY2018E
1,169
12.5
48
15.9
10.6
17.6
1.9
7.6
0.9
Source: Company, Angel Research
March 6, 2017
4
Top Picks Report | March 2017
Stock Info
Bajaj Electricals
CMP
258
The company is among the top 4 players in the consumer durables space
TP
274
across all its product categories (leader in small appliances; number-4 in fans
and lighting). It has a strong distribution reach with 4,000 distributors
Upside
6%
reaching out to 400,000 retailers.
Sector
Cons. Durable
In the 3 years preceding FY2016, the company’s E&P segment had been
Market Cap (` cr)
2,611
underperforming owing to cost overruns and delays in project executions.
Beta
0.9
However, the segment has turned around in FY2016 on the profitability front
52 Week High / Low
280 / 169
and delivered a healthy EBIT margin of ~6% for the year. Currently the
segment’s order book stands at `2,480cr.
3 year-Chart
With expectation of timely execution of new projects in the E&P segment and
400
with the Lighting and Consumer Durables segments expected to benefit from
350
an improvement in consumer sentiments going forward, we expect the
300
company’s top-line to grow at a CAGR of ~8% to `5,351cr and bottom-line to
250
grow at a CAGR of 20% to `138cr over FY2016-FY2018E. We recommend an
200
Accumulate rating on the stock.
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)
FY2017E
4,801
5.7
105
10.4
12.4
24.8
3.1
9.8
0.6
FY2018E
5,351
6.2
138
13.7
14.5
18.9
2.7
8.1
0.5
Source: Company, Angel Research
Source: Company, Angel Research
Stock Info
Blue Star
CMP
567
BSL is one of the largest air-conditioning companies in India. With a mere
TP
634
3% penetration level of ACs vs 25% in China, the overall outlook for the room
Upside
11.8%
air-conditioner (RAC) market in India is favourable.
Sector
Cons. Durable
BSL’s RAC business has been outgrowing the industry by ~10% points over the
Market Cap (` cr)
5,418
last few quarters, resulting in the company consistently increasing its market
share (~7% in FY2014 to 10.5% at present). This has resulted in the Cooling
Beta
0.6
Products Division (CPD)'s share in overall revenues increasing from~23% in
52 Week High / Low
588 / 322
FY2010 to ~42% in FY2016 (expected to improve to ~47% in FY2018E). With
strong brand equity and higher share in split ACs, we expect the CPD to
3 year-Chart
continue to drive growth.
700
Aided by increasing contribution from the CPD, we expect the overall top-line
600
to post a revenue CAGR of ~16% over FY2016-18E and margins to improve
500
from 5.3% in FY2015 to 7.3% in FY2018E. Moreover, the merger of Blue Star
400
Infotech has infused cash and strengthened the balance sheet. We
300
recommend an Accumulate rating on the stock.
200
100
Key Financials
-
Y/E
Sales OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
4,283
5.9
141
14.9
20.4
38.1
7.4
21.5
1.3
Source: Company, Angel Research
FY2018E
5,077
7.3
211
22.1
26.4
25.6
6.2
14.6
1.1
Source: Company, Angel Research
March 6, 2017
5
Top Picks Report | March 2017
Stock Info
Mirza International
CMP
89
In the branded domestic segment, we expect the company to report a ~16%
TP
107
CAGR over FY2016-18E to `235cr. We anticipate strong growth for the
Upside
20%
company on the back of (a) the company’s wide distribution reach through its
1,000+ outlets including 120 exclusive brand outlets (EBOs) in 35+ cities and
Sector
Footwear
the same are expected to reach 200 over the next 2-3 years and (b) strong
Market Cap (` cr)
1,072
branding (Red Tape) in the shoes segment.
Beta
1.5
MIL’s major export revenue comes from the UK (73%), followed by the US
52 Week High / Low
111 /69
(14%) and the balance from ROW. Export constitutes ~75% of the company’s
total revenue. We expect the company to report healthy growth over the next
2-3 years on back of recovery in the UK market, strong growth in the US market
3 year-Chart
and with it tapping newer international geographies like the Middle East countries.
160
140
In FY2016, the company acquired Genesis Footwear which has a better
120
margin profile than it. The deal resulted in MIL’s EPS increasing by ~4% and
100
ROE improving from 15.9% to 17.5%. Further, due to this merger, the
80
company’s capacity has increased from 5.4mn to 6.4mn units.
60
We expect MIL to report a net revenue CAGR of ~7% to ~`1,069cr and net
40
profit CAGR of ~8% to `90cr over FY2016-18E. We have a Buy rating on the
20
-
stock and target price of `107.
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)
FY2017E
963
17.2
74
6.1
15.0
14.5
2.2
7.7
1.3
FY2018E
1,069
18.0
90
7.5
15.7
11.9
1.9
6.5
1.2
Source: Company, Angel Research
Stock Info
Siyaram Silk Mills
CMP
1,693
SSML has strong brands which cater to premium as well as popular mass
TP
1,872
segments of the market. Further, SSML entered the ladies' salwar kameez and
Upside
11%
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)
1,587
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
0.8
300-350 stores going forward. Further, the company's brands are sold across
52 Week High / Low
1,770/928
3,00,000 multi brand outlets in the country.
Going forward, we expect SSML to report a net sales CAGR of ~7% to
3 year-Chart
~`1,948cr and adj.net profit CAGR of ~9% to `103cr over FY2016-18E on
1,800
back of market leadership in blended fabrics, strong brand building, wide
1,600
distribution channel, strong presence in tier II and tier III cities and emphasis
1,400
1,200
on latest designs and affordable pricing points. At the current market price,
1,000
SSML trades at an inexpensive valuation. We have an Accumulate
800
recommendation on the stock and target price of `1,872.
600
400
Key Financials
200
-
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
1,652
11.6
87
92.4
14.7
18.3
2.7
10.1
1.2
Source: Company, Angel Research
FY2018E
1,857
11.7
103
110.1
15.2
15.4
2.3
8.8
1.0
Source: Company, Angel Research
March 6, 2017
6
Top Picks Report | March 2017
Stock Info
HCL Technologies
CMP
853
Healthy pipeline: Company’s engineering services has been seeing lumpy
TP
1,000
growth over the last few quarters. This is however largely a function of the
Upside
17.2%
timing of large transformational deals. 6-8 of the large deals signed a few
Sector
IT
quarters ago will aid the company to continue to post industry leading growth.
Market Cap (` cr)
1,20,328
We expect HCL Tech to post a USD and INR revenue CAGR of 16.3% and
Beta
0.5
18.0%, respectively, over FY2016-18E (inclusive of the acquisition of
52 Week High / Low
890 / 707
Geometric Software and the Volvo deal).
Robust outlook: For FY2017 revenues are expected to grow between 12.0-
3 year-Chart
14.0% in CC. Revenue guidance is based on FY2016 (April to March’2016)
1,200
average exchange rates. The above constant currency guidance translates to
1,000
11.2% to 13.2% growth in US$ terms.
800
Outlook and Valuations: The stock is attractively valued at the current market
600
price and hence we maintain our Buy with a price target of `1,000.
400
Key Financials
200
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
-
June
(`cr)
(%)
(`cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
49,242
20.5
7,862
55.7
20.3
15.3
3.1
10.2
2.3
Source: Company, Angel Research
FY2018E
57,168
20.5
9,037
64.1
17.9
13.3
2.4
7.8
1.9
Source: Company, Angel Research
Stock Info
Infosys
CMP
1,031
Revenue guidance for FY17: The Management has lowered its guidance for
TP
1,249
FY2017, to 8-9% in CC terms and 9.2-10.2% in INR terms (exchange rate as
Upside
21.1%
on March 31, 2016). For FY2016, the company posted a 13.3% growth in CC
Sector
IT
terms V/s a guidance of 12.8-13.2% growth (in CC). We expect the company
Market Cap (` cr)
2,36,850
to post ~9.0% USD revenue growth in FY2017.
Beta
0.7
Aims to be US$20bn company by FY20: Company expects its revenue to rise
52 Week High / Low
1,279 / 900
to US$20bn by FY2020, up from US$8.7bn in FY2015, as it focuses on
acquisitions and winning more new technology services, implying a
3 year-Chart
14% CAGR over the period. Over the near term, we expect Infosys to post a
1,400
9.0% USD revenue growth in FY2017. Over FY2016-18E, we expect
1,200
USD and INR revenue to grow at a CAGR of 9.0% and 9.5%, respectively.
1,000
Outlook and Valuations: The stock trades at a valuation of 18x FY2018E
800
earnings. We recommend Buy on the stock with a price target of `1,249.
600
400
Key Financials
200
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
-
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
68,350
27.0
14,354
62.5
21.3
16.5
3.5
11.0
2.9
FY2018E
77,236
27.0
15,928
69.4
21.6
14.9
3.2
9.8
2.5
Source: Company, Angel Research
Source: Company, Angel Research
March 6, 2017
7
Top Picks Report | March 2017
Stock Info
Jagran Prakashan
CMP
190
We expect JPL to register a net sales CAGR of ~12% over FY2016-18E, on
TP
225
back of (a) strong growth in advertising revenue due to improvement in GDP
Upside
18%
growth, and (b) improvement in circulation revenue owing to combination of
Sector
Media
increase in cover price and volume growth.
Market Cap (` cr)
6,218
Further the acquisition of Radio City would also boost the company's revenue
going ahead. Radio City has ~20 stations across 7 states in the country and is
Beta
0.6
second only to ENIL in all its operating circles, ie Delhi, Mumbai, Bengaluru,
52 Week High / Low
213/144
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
200
expect an adj. net profit CAGR of ~12% over FY2016-18E to `409cr.
150
Considering Dainik Jagran's strong presence in the rapidly growing Hindi
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
50
`225.
-
Key Financials
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
Source: Company, Angel Research
FY2017E
2,355
28.0
353
10.8
21.7
17.6
3.8
9.5
2.6
FY2018E
2,635
28.0
409
12.5
21.7
15.2
3.3
8.3
2.3
Source: Company, Angel Research
Stock Info
TV Today Network
CMP
260
TTNL enjoys a strong viewership ranking in the Hindi and English news
TP
344
channel categories. The company’s Hindi news channel - Aaj Tak has
Upside
27%
maintained its market leadership position occupying the No.1 rank for several
Sector
Media
consecutive years in terms of viewership. Its English news channel - India
Today too has been continuously gaining viewership; it has now captured the
Market Cap (` cr)
1,552
No. 2 ranking from No. 4 earlier. Its other channels like Dilli Aaj Tak and Tez
Beta
1.3
are also popular among viewers.
52 Week High / Low
360 /250
Out of the 7 radio stations, TTNL has sold off 4 (Jodhpur, Amritsar, Patiala
and Shimla) for `4cr. The remaining 3 stations are in the process of getting
3 year-Chart
sold off to ENIL but the sale will have to wait until concerns raised by the MIB
400
are resolved. Going forward, we expect them to be sold off and this would
350
prop up the company’s profitability.
300
250
We expect TTNL to report a net revenue CAGR of ~9% to ~`743cr and net
200
profit CAGR of
~7% to
`108cr over FY2016-18E. We have a Buy
150
recommendation on the stock and target price of `344.
100
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)
FY2017E
567
26.7
92
15.4
17.4
16.9
2.5
8.6
2.3
Source: Company, Angel Research
FY2018E
645
27.0
108
18.1
15.2
14.4
2.2
7.1
1.9
Source: Company, Angel Research
March 6, 2017
8
Top Picks Report | March 2017
Stock Info
KEI Industries
CMP
172
Healthy order book indicates strong revenue visibility: KEI’s current order book
TP
207
(OB) stands at `3,233cr (segmental break-up: `2,154cr in EPC, `667cr in
Upside
20%
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)
1,340
Strengthening distribution network and higher ad Spend to increase B2C
Beta
1.2
business: KEI’s consistent effort to increase its retail business from 30% of
52 Week High / Low
187/ 92
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
200
FY16 and expected to spend).
180
160
Exports to continue its growth momentum: KEI’s export (FY16 - 8% of revenue)
140
120
is expected to reach a level of ~14-15% in next two years with higher order
100
execution from current OB of
~`180cr and participation in various
80
60
international tenders worth `500cr. We expect a strong ~26% growth CAGR
40
over FY2016-19 in exports. We expect KEI to report net revenue CAGR of
20
-
~14% to ~`3,445cr and net profit CAGR of ~26% to `123cr over FY2016-
19E. Hence we have a Buy rating on the stock and target price of `207.
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)
FY2017E
2,682
10.4
91
11.7
20.1
14.7
2.9
6.5
0.7
FY2018E
3,058
10.0
99
12.8
18.2
13.5
2.4
6.0
0.6
Source: Company, Angel Research
Stock Info
Larsen & Toubro
CMP
1,469
L&T’s, order backlog remains robust at `2.5trn (2.5x of FY16 revenues) of
TP
1,634
which 29.0% is international order backlog. It’s consolidated order inflow
Upside
11%
increased by 8.7% yoy to `311bn due to higher domestic order inflows in
Sector
Infrastructure
2QFY17. Domestic and international orders accounted for 76.3% and 23.7%
respectively in the inflows. Order growth was mainly from domestic
Market Cap (` cr)
1,37,057
infrastructure and international hydrocarbon segment.
Beta
1.4
L&T has maintained its guidance of (a) 15% growth in consolidated order
52 Week High / Low
1,615 / 1,135
inflows; (b) a 12-15% rise in consolidated revenues; and (c) up to a 50bps
improvement in EBITDA margins in core engineering. However, management
3 year-Chart
acknowledged is uncertain of the impact of currency de-monetization at
2,000
1,800
present. L&T’s order book has ~6% exposure to the high-end realty space.
1,600
1,400
Going forward we expect the company to report healthy top-line and bottom-
1,200
line growth on the back of execution of domestic orders. L&T’s order prospects
1,000
800
continue to remain strong. We are of the view that L&T is a proxy play for
600
investors wanting to ride on Indian infrastructure growth story. We recommend
400
an Accumulate on the stock with Target Price of `1,634.
200
-
Key Financials
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
Source: Company, Angel Research
FY2017E
1,11,017
11.0
5,691
61.1
13.1
24.0
2.9
7.4
2.2
FY2018E
1,24,908
11.0
6,216
66.7
13.0
22.0
2.7
6.8
2.0
Source: Company, Angel Research
March 6, 2017
9
Top Picks Report | March 2017
Stock Info
Mahindra Lifespace
CMP
345
MLF has 13 projects under implementation across cities. MLF has exhibited
TP
522
fast completion of projects compared to others. Sales cycle in ~65% of
Upside
51.3%
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)
1,428
MLF as of 4QFY2016 is pursuing ~4.0mn sq. ft. of sale of the total ~15.0mn
Beta
0.7
sq. ft. of saleable area. Having sold ~60% of ongoing projects, we expect MLF
52 Week High / Low
500 / 341
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
700
sq.ft across 4 cities, which allay any concern over long-term revenue growth.
600
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 1.1x 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)
(x)
(x)
(x)
FY2017E
1,152
22.7
75
29.9
7.2
11.5
0.9
8.9
1.9
FY2018E
1,300
24.6
138
35.8
8.4
9.6
0.8
6.6
1.6
Source: Company, Angel Research
Stock Info
Navkar
CMP
162
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
64%
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)
2,308
The ICD with rail link should benefit from first mover advantage in a region
Beta
0.6
that has huge market potential and accounts for ~27% of volumes at JNPT.
52 Week High / Low
224 / 151
The ICD should be able to capture the EXIM volumes from the region through
rail link that till now was being custom cleared at JNPT (Import) or being
transported via road and consolidated at JNPT (Export). South Gujarat
3 year-Chart
250
volumes will now head straight to the Vapi ICD; thus the company can now
cater to bulk commodities and domestic traffic that it had been rejecting owing
200
to capacity constraints at CFS.
150
We expect NCL to successfully use its rail advantage and scale up its
100
utilizations at both JNPT and Vapi ICD. We have a Buy rating on the stock.
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)
FY2017E
369
42.9
99
6.9
7.1
23.4
1.7
16.9
7.3
Source: Company, Angel Research
FY2018E
561
42.3
164
11.5
10.5
14.1
1.5
11.3
4.8
Source: Company, Angel Research
March 6, 2017
10
Top Picks Report | March 2017
Stock Info
Power Grid Corporation
CMP
191
During the 1HFY2017, the company has already capitalized assets worth
TP
223
`120bn and is on track to achieve the capitalization guidance of `280bn-
Upside
17%
300bn for the full year. During the year, PGCIL has already commissioned
Sector
Power
pole-2 of the Assam-Agra HVDC line and is likely to commission its poles - 3
& 4, in addition to the `65bn Champa - Kurukshetra HVDC project, `19bn
Market Cap (` cr)
99,871
Srikakulam - Angul line and `36bn Wardha - Nizamabad line. Based on
Beta
0.7
status of pipeline of projects, we expect commissioning to be strong in rest of
52 Week High / Low
209 / 134
the year.
During the 1HFY2017, the total order awarded was `181bn. Total order size to be
3 year-Chart
awarded over next 18 months is ~ `330bn which indicates its healthy prospects.
250
Going forward, we expect the company to report strong top-line CAGR of
200
~16% and bottom-line CAGR of ~19% on back of strong capitalization
150
guidance. We recommend a Buy rating on the stock with Target Price of `223.
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)
-
FY2017E
25,315
88.2
7,405
14.2
15.2
13.5
2.2
9.7
8.6
FY2018E
29,193
88.7
8,979
17.2
16.1
11.1
1.8
8.7
7.7
Source: Company, Angel Research
Source: Company, Angel Research
Stock Info
Alkem Leboratories
CMP
2,139
Alkem is 5th largest pharma company is the domestic market. It has presence
TP
2,257
in India, US and a few other countries. The 73% of its revenues come from the
Upside
5.52%
Indian markets while 20% come from the US and rest from the other countries.
The company has leadership position in the anti infective segment in India and
Sector
Pharma
it is ranked as no. 3 in Gastro-Intestinal and Pain/Analgesics segments.
Market Cap (` cr)
25,635
Overall it holds 3.6% market share in the domestic formulations business and
Beta
0.24
7.9% share in overall prescriptions in country.
52 Week High / Low
2,187/ 1,175
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 December 2016, company has a
1,500
pipeline of 77 ANDAs of which 35 are approved. Company expects to launch
1,000
~7-8 ANDAs each year and improve its filing rate as well. Overall US
revenues are expected to grow at ~28% growth rate from FY17E-FY19E.
500
Overall outlook remains strong with 18.2% CAGR in the topline and 23.4%
-
CAGR in the bottom-line. We have an Accumulate rating on the stock.
Key Financials
Source: Company, Angel Research
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
6,065
18.7
959
80.2
22.5
26.7
6.0
22.2
4.2
FY2018E
7,009
20.0
1,099
92.0
21.6
23.3
5.0
18.0
3.6
Source: Company, Angel Research
March 6, 2017
11
Top Picks Report | March 2017
Stock Info
Lupin
CMP
1,471
Lupin is the fastest growing company among the top 5 companies in domestic
TP
1,809
formulation space, registering a CAGR of 20.0% vs. market growth of
Upside
23.0%
~13-14%. Six of Lupin's products are among the top 300 brands in the
country.
Sector
Pharma
Market Cap (` cr)
66,431
In US market, Lupin is currently the 5th largest generic player with 5.3% market
share in prescriptions. Lupin has total 338 ANDA filings, of which 196 have
Beta
0.84
been approved, with 45 FTFs valued at more than US$13bn. Lupin plans to
52 Week High / Low
1,912 / 1,280
launch 25-30 products in the US in FY2017. We expect a CAGR of 22.9% in
US market during FY2016-18E on back of new product launches.
3 year-Chart
2,500
Lupin figures among the few Indian companies with a formidable presence in
Japan, the world’s second largest pharma market. Management believes that
2,000
there will be patent expiries of ~US$14-16bn in next two years in the
1,500
Japanese market, which along with increased generic penetration would drive
growth in the market. The Management expects improvement in growth in the
1,000
next 3-4 years. We recommend to buy this stock with target price of `1,809.
500
Key Financials
-
Y/E
Sales
OPM PAT EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
17,496
26.4
2,874
63.9
23.3
23.0
4.8
14.4
3.9
Source: Company, Angel Research
FY2018E
20,304
26.7
3,436
76.4
22.4
19.3
3.9
11.6
3.2
Source: Company, Angel Research
March 6, 2017
12
Top Picks Report | March 2017
Macro watch
Exhibit 2: Quarterly GDP trends
Exhibit 3: IIP trends
(%)
(%)
9.0
7.0
8.3
5.7
7.9
6.0
8.0
7.5
7.5
7.6
7.4
7.2
5.0
7.1
7.0
6.6
6.7
4.0
7.0
3.0
2.2
5.8
1.9
6.0
2.0
1.3
0.7
1.0
0.3
5.0
-
4.0
(1.0)
(0.4)
(0.7)
(2.0)
3.0
(1.3)
(3.0)
(1.8)
(2.5)
Source: CSO, Angel Research
Source: MOSPI, Angel Research
Exhibit 4: Monthly CPI inflation trends
Exhibit 5: Manufacturing and services PMI
56.0
Mfg. PMI
Services PMI
(%)
7.0
54.0
6.1
5.8
5.8
6.0
5.5
5.3
5.1
52.0
4.8
5.0
4.4
4.2
50.0
3.6
4.0
3.4
3.2
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 6: Exports and imports growth trends
Exhibit 7: Key policy rates
(%)
Exports yoy growth
Imports yoy growth
(%)
Repo rate
Reverse Repo rate
CRR
15.0
7.00
10.0
6.50
5.0
6.00
0.0
5.50
(5.0)
5.00
(10.0)
4.50
(15.0)
4.00
(20.0)
(25.0)
3.50
(30.0)
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
March 6, 2017
13
Top Picks Report | March 2017
Global watch
Exhibit 8: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
6.8
0.7
5.3
6.0
4.9
4.5
4.0
3.0
2.0
1.9
1.7
2.0
1.2
1.2
-
(2.0)
(0.4)
(4.0)
(2.9)
Source: Bloomberg, Angel Research
Exhibit 9: 2016 GDP Growth projection by IMF (%, yoy) across select developing and developed countries
(%)
10.0
7.6
8.0
6.6
6.0
4.9
4.3
4.0
3.2
1.8
1.7
1.6
2.0
1.3
(0.8)
0.5
(3.3)
0.1
-
(2.0)
(4.0)
Source: IMF, Angel Research
Exhibit 10: One year forward P-E ratio across select developing and developed countries
(x)
20.0
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
-
Source: IMF, Angel Research
March 6, 2017
14
Top Picks Report | March 2017
Exhibit 11: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
66,786
3.9
9.5
48.8
Russia
Micex
(7.2)
(3.1)
7.7
2,057
India
Nifty
3.9
8.6
27.6
8,898
China
Shanghai Composite
2.2
(1.3)
10.8
3,218
South Africa
Top 40
(3.4)
2.4
0.0
44,636
Mexico
Mexbol
0.9
5.6
5.4
47,415
Indonesia
LQ45
1.9
4.4
10.2
894
Malaysia
KLCI
1.3
5.0
2.7
1,708
Thailand
SET 50
(0.1)
5.2
16.5
983
USA
Dow Jones
5.7
9.9
23.5
21,006
UK
FTSE
3.8
8.7
19.3
7,374
Japan
Nikkei
1.7
6.3
22.3
19,469
Germany
DAX
3.2
14.4
26.6
12,027
France
CAC
4.2
10.3
10.8
4,995
Source: Bloomberg, Angel Research
March 6, 2017
15
Top Picks Report | March 2017
Stock Watch
March 6, 2017
16
Stock Watch | March 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales (` cr)
OPM (%)
EPS (`)
PER (x)
P/BV (x)
RoE (%)
EV/Sales (x)
(`)
Price (`)
(` cr)
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
Agri / Agri Chemical
Rallis
Neutral
234
-
4,555
1,937
2,164
13.3
14.3
9.0
11.0
26.0
21.3
4.5
4.0
18.4
19.8
2.4
2.1
United Phosphorus
Neutral
691
-
35,018
15,176
17,604
18.5
18.5
37.4
44.6
18.5
15.5
3.6
3.0
21.4
21.2
2.4
2.0
Auto & Auto Ancillary
Amara Raja Batteries
Buy
848
1,009
14,487
5,305
6,100
16.0
16.3
28.4
34.0
29.9
24.9
5.8
4.8
19.3
19.3
2.7
2.4
Apollo Tyres
Buy
183
235
9,320
12,877
14,504
14.3
13.9
21.4
23.0
8.5
8.0
1.3
1.2
16.4
15.2
0.9
0.8
Ashok Leyland
Buy
87
111
24,845
20,021
21,915
11.6
11.9
4.5
5.3
19.4
16.4
4.0
3.5
20.6
21.5
1.2
1.1
Bajaj Auto
Neutral
2,831
-
81,923
25,093
27,891
19.5
19.2
143.9
162.5
19.7
17.4
5.5
4.7
30.3
29.3
3.0
2.6
Bharat Forge
Neutral
1,044
-
24,301
7,726
8,713
20.5
21.2
35.3
42.7
29.6
24.4
5.5
4.9
18.9
20.1
3.2
2.8
Ceat
Buy
1,166
1,450
4,714
7,524
8,624
13.0
12.7
131.1
144.3
8.9
8.1
1.6
1.4
19.8
18.6
0.7
0.6
Eicher Motors
Neutral
23,089
-
62,827
16,583
20,447
17.5
18.0
598.0
745.2
38.6
31.0
13.2
10.0
41.2
38.3
3.6
2.9
Exide Industries
Neutral
211
-
17,927
7,439
8,307
15.0
15.0
8.1
9.3
26.0
22.7
3.6
3.3
14.3
16.7
2.0
1.8
Gabriel India
Buy
112
130
1,605
1,544
1,715
9.0
9.3
5.4
6.3
20.7
17.7
3.9
3.5
18.9
19.5
1.0
0.9
Hero Motocorp
Accumulate
3,271
3,446
65,312
28,083
30,096
15.3
15.7
171.8
187.0
19.0
17.5
6.6
5.6
30.1
27.9
2.1
2.0
Indag Rubber
Neutral
194
-
510
286
326
19.8
16.8
11.7
13.3
16.6
14.6
2.8
2.6
17.8
17.1
1.4
1.3
Jamna Auto Industries
Neutral
207
-
1,645
1,486
1,620
9.8
9.9
15.0
17.2
13.8
12.0
3.0
2.5
21.8
21.3
1.2
1.1
JK Tyres
Neutral
123
-
2,785
7,455
8,056
15.0
15.0
21.8
24.5
5.6
5.0
1.2
1.0
22.8
21.3
0.5
0.4
L G Balakrishnan & Bros Neutral
562
-
883
1,302
1,432
11.6
11.9
43.7
53.0
12.9
10.6
1.8
1.6
13.8
14.2
0.8
0.7
Mahindra and Mahindra Neutral
1,320
-
81,953
46,534
53,077
11.6
11.7
67.3
78.1
19.6
16.9
3.2
2.8
15.4
15.8
1.7
1.5
Maruti
Accumulate
5,892
6,560
177,980
67,822
83,288
16.0
16.4
253.8
312.4
23.2
18.9
5.3
4.3
23.0
22.9
2.3
1.8
Minda Industries
Neutral
430
-
3,414
2,728
3,042
9.0
9.1
68.2
86.2
6.3
5.0
1.4
1.1
23.8
24.3
1.3
1.1
Motherson Sumi
Neutral
354
-
49,708
45,896
53,687
7.8
8.2
13.0
16.1
27.2
22.0
8.8
7.0
34.7
35.4
1.2
1.0
Rane Brake Lining
Neutral
949
-
751
511
562
11.3
11.5
28.1
30.9
33.8
30.7
5.2
4.7
15.3
15.0
1.6
1.5
Setco Automotive
Neutral
35
-
472
741
837
13.0
13.0
15.2
17.0
2.3
2.1
0.4
0.3
15.8
16.3
1.0
0.9
Subros
Neutral
196
-
1,173
1,488
1,681
11.7
11.9
6.4
7.2
30.5
27.3
3.2
2.9
10.8
11.4
1.0
0.9
Swaraj Engines
Neutral
1,389
-
1,725
660
810
15.2
16.4
54.5
72.8
25.5
19.1
7.9
7.2
31.5
39.2
2.4
2.0
Tata Motors
Neutral
460
-
132,847
300,209
338,549
8.9
8.4
42.7
54.2
10.8
8.5
1.7
1.5
15.6
17.2
0.6
0.5
TVS Motor
Neutral
429
-
20,398
13,390
15,948
6.9
7.1
12.8
16.5
33.6
26.0
8.4
6.6
26.3
27.2
1.6
1.3
Banking
Axis Bank
Accumulate
513
580
122,696
46,932
53,575
3.5
3.4
32.3
44.6
15.9
11.5
2.0
1.77
13.6
16.5
-
-
Bank of Baroda
Neutral
160
-
36,855
19,980
23,178
1.8
1.8
11.5
17.3
13.9
9.2
1.6
1.3
8.3
10.1
-
-
Can Fin Homes
Accumulate
1,954
2,128
5,202
420
526
3.5
3.5
86.5
107.8
22.6
18.1
4.9
4.0
23.6
24.1
-
-
Canara Bank
Neutral
289
-
15,676
15,225
16,836
1.8
1.8
14.5
28.0
19.9
10.3
1.4
1.1
5.8
8.5
-
-
Cholamandalam Inv.
Buy
963
1,230
15,055
2,012
2,317
6.3
6.3
42.7
53.6
22.6
18.0
3.6
3.1
16.9
18.3
-
-
Dewan Housing Finance Accumulate
324
350
10,155
2,225
2,688
2.9
2.9
29.7
34.6
10.9
9.4
1.8
1.5
16.1
16.8
-
-
Equitas Holdings
Buy
174
235
5,873
939
1,281
11.7
11.5
5.8
8.2
30.0
21.2
2.6
2.3
10.9
11.5
-
-
Federal Bank
Neutral
85
-
14,688
8,259
8,995
3.0
3.0
4.3
5.6
19.8
15.2
1.7
1.6
8.5
10.1
-
-
HDFC
Neutral
1,371
-
217,487
11,475
13,450
3.4
3.4
45.3
52.5
30.3
26.1
5.8
5.2
20.2
20.5
-
-
HDFC Bank
Neutral
1,377
-
352,407
46,097
55,433
4.5
4.5
58.4
68.0
23.6
20.2
4.1
3.45
18.8
18.6
-
-
ICICI Bank
Accumulate
276
315
160,622
42,800
44,686
3.1
3.3
18.0
21.9
15.3
12.6
2.1
1.9
11.1
12.3
-
-
March 6, 2017
17
Stock Watch | March 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales (` cr)
OPM (%)
EPS (`)
PER (x)
P/BV (x)
RoE (%)
EV/Sales (x)
(`)
Price (`)
(` cr)
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
Lakshmi Vilas Bank
Accumulate
162
174
3,096
3,339
3,799
2.7
2.8
11.0
14.0
14.7
11.6
1.5
1.4
11.2
12.7
-
-
LIC Housing Finance
Accumulate
555
630
28,014
3,712
4,293
2.6
2.5
39.0
46.0
14.2
12.1
2.7
2.3
19.9
20.1
-
-
Punjab Natl.Bank
Neutral
140
-
29,717
23,532
23,595
2.3
2.4
6.8
12.6
20.5
11.1
3.2
2.3
3.3
6.5
-
-
RBL Bank
Neutral
456
-
16,847
1,783
2,309
2.6
2.6
12.7
16.4
35.9
27.8
3.9
3.5
12.8
13.3
-
-
Repco Home Finance
Buy
642
825
4,016
388
457
4.5
4.2
30.0
38.0
21.4
16.9
3.6
3.0
18.0
19.2
-
-
South Ind.Bank
Neutral
20
-
2,752
6,435
7,578
2.5
2.5
2.7
3.1
7.5
6.6
1.0
0.8
10.1
11.2
-
-
St Bk of India
Neutral
265
-
211,417
88,650
98,335
2.6
2.6
13.5
18.8
19.6
14.1
1.9
1.6
7.0
8.5
-
-
Union Bank
Neutral
144
-
9,927
13,450
14,925
2.3
2.3
25.5
34.5
5.7
4.2
0.8
0.7
7.5
10.2
-
-
Yes Bank
Neutral
1,435
-
60,767
8,978
11,281
3.3
3.4
74.0
90.0
19.4
15.9
3.7
3.1
17.0
17.2
-
-
Capital Goods
ACE
Neutral
54
-
536
709
814
4.1
4.6
1.4
2.1
38.7
25.8
1.6
1.5
4.4
6.0
0.9
0.8
BEML
Neutral
1,301
-
5,416
3,451
4,055
6.3
9.2
31.4
57.9
41.4
22.5
2.5
2.3
6.3
10.9
1.7
1.4
BGR Energy
Neutral
131
-
947
16,567
33,848
6.0
5.6
7.8
5.9
16.8
22.2
1.0
0.9
4.7
4.2
0.2
0.1
Bharat Electronics
Neutral
1,495
-
33,388
8,137
9,169
16.8
17.2
58.7
62.5
25.5
23.9
3.9
3.5
44.6
46.3
3.1
2.8
BHEL
Neutral
158
-
38,709
28,797
34,742
-
2.8
2.3
6.9
68.8
22.9
1.2
1.1
1.3
4.8
1.0
0.7
Blue Star
Accumulate
567
634
5,418
4,283
5,077
5.9
7.3
14.9
22.1
38.1
25.6
7.4
6.2
20.4
26.4
1.3
1.1
Crompton Greaves
Neutral
68
-
4,237
5,777
6,120
5.9
7.0
3.3
4.5
20.5
15.0
0.9
0.9
4.4
5.9
0.7
0.6
Greaves Cotton
Neutral
157
-
3,830
1,755
1,881
16.8
16.9
7.8
8.5
20.1
18.5
4.0
3.7
20.6
20.9
1.9
1.7
Inox Wind
Neutral
168
-
3,725
5,605
6,267
15.7
16.4
24.8
30.0
6.8
5.6
1.9
1.4
25.9
24.4
0.7
0.6
KEC International
Neutral
167
-
4,293
9,294
10,186
7.9
8.1
9.9
11.9
16.9
14.0
2.5
2.1
15.6
16.3
0.7
0.6
KEI Industries
Buy
173
207
1,346
2,682
3,058
10.4
10.0
11.7
12.8
14.7
13.5
3.0
2.5
20.1
18.2
0.7
0.6
Thermax
Neutral
875
-
10,429
5,421
5,940
7.3
7.3
25.7
30.2
34.1
29.0
4.1
3.8
12.2
13.1
1.8
1.7
VATech Wabag
Buy
581
681
3,170
3,136
3,845
8.9
9.1
26.0
35.9
22.3
16.2
2.8
2.4
13.4
15.9
0.9
0.7
Voltas
Accumulate
372
407
12,306
6,511
7,514
7.9
8.7
12.9
16.3
28.8
22.8
5.2
4.5
16.7
18.5
1.6
1.4
Cement
ACC
Neutral
1,395
-
26,194
11,225
13,172
13.2
16.9
44.5
75.5
31.3
18.5
3.0
2.7
11.2
14.2
2.3
2.0
Ambuja Cements
Neutral
226
-
44,786
9,350
10,979
18.2
22.5
5.8
9.5
38.9
23.7
3.3
2.9
10.2
12.5
4.8
4.1
India Cements
Neutral
166
-
5,087
4,364
4,997
18.5
19.2
7.9
11.3
21.0
14.7
1.5
1.5
8.0
8.5
1.9
1.7
J K Lakshmi Cement
Neutral
405
-
4,760
2,913
3,412
14.5
19.5
7.5
22.5
53.9
18.0
3.3
2.8
12.5
18.0
2.2
1.8
JK Cement
Neutral
866
-
6,051
4,398
5,173
15.5
17.5
31.2
55.5
27.7
15.6
3.3
2.9
12.0
15.5
1.9
1.6
Orient Cement
Neutral
143
-
2,939
2,114
2,558
18.5
20.5
8.1
11.3
17.7
12.7
2.6
2.2
9.0
14.0
2.0
1.6
UltraTech Cement
Neutral
3,802
-
104,348
25,768
30,385
21.0
23.5
111.0
160.0
34.2
23.8
4.4
3.8
13.5
15.8
4.1
3.4
Construction
Engineers India
Neutral
148
-
9,987
1,725
1,935
16.0
19.1
11.4
13.9
13.0
10.7
1.8
1.7
13.4
15.3
4.7
4.2
Gujarat Pipavav Port
Neutral
153
-
7,385
705
788
52.2
51.7
5.0
5.6
30.6
27.3
3.0
2.7
11.2
11.2
10.1
8.6
ITNL
Neutral
100
-
3,291
8,946
10,017
31.0
31.6
8.1
9.1
12.4
11.0
0.5
0.5
4.2
5.0
3.7
3.4
KNR Constructions
Neutral
181
-
2,544
1,385
1,673
14.7
14.0
41.2
48.5
4.4
3.7
0.8
0.7
14.9
15.2
1.9
1.6
Larsen & Toubro
Accumulate
1,469
1,634
137,057
111,017
124,908
11.0
11.0
61.1
66.7
24.0
22.0
2.9
2.7
13.1
12.9
2.3
2.1
MEP Infra
Neutral
47
-
762
1,877
1,943
30.6
29.8
3.0
4.2
15.6
11.2
7.6
5.1
0.6
0.6
1.8
1.6
Nagarjuna Const.
Neutral
80
-
4,422
8,842
9,775
9.1
8.8
5.3
6.4
15.0
12.4
1.2
1.1
8.2
9.1
0.7
0.6
March 6, 2017
18
Stock Watch | March 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales (` cr)
OPM (%)
EPS (`)
PER (x)
P/BV (x)
RoE (%)
EV/Sales (x)
(`)
Price (`)
(` cr)
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
NBCC
Neutral
168
-
15,138
7,428
9,549
7.9
8.6
8.2
11.0
20.5
15.3
1.0
0.8
28.2
28.7
1.7
1.3
PNC Infratech
Buy
101
143
2,580
2,350
2,904
13.1
13.2
9.0
8.8
11.2
11.4
0.4
0.4
15.9
13.9
1.2
1.0
Power Mech Projects
Neutral
426
-
627
1,801
2,219
12.7
14.6
72.1
113.9
5.9
3.7
1.1
0.9
16.8
11.9
0.3
0.2
Sadbhav Engineering
Accumulate
272
298
4,668
3,598
4,140
10.3
10.6
9.0
11.9
30.2
22.9
3.2
2.8
9.9
11.9
1.6
1.3
Simplex Infra
Neutral
297
-
1,469
6,829
7,954
10.5
10.5
31.4
37.4
9.5
7.9
1.0
0.9
9.9
13.4
0.6
0.5
SIPL
Neutral
95
-
3,343
1,036
1,252
65.5
66.2
(8.4)
(5.6)
-
-
3.6
4.1
(22.8)
(15.9)
11.4
9.5
FMCG
Akzo Nobel India
Accumulate
1,543
1,720
7,401
2,955
3,309
13.3
13.7
57.2
69.3
27.0
22.3
8.8
7.4
32.7
33.3
2.3
2.0
Asian Paints
Neutral
1,015
-
97,311
17,128
18,978
16.8
16.4
19.1
20.7
53.1
49.0
18.5
17.4
34.8
35.5
5.6
5.0
Britannia
Buy
3,095
3,626
37,143
9,594
11,011
14.6
14.9
80.3
94.0
38.5
32.9
15.8
12.2
41.2
-
3.7
3.2
Colgate
Accumulate
908
995
24,691
4,605
5,149
23.4
23.4
23.8
26.9
38.1
33.7
21.1
16.5
64.8
66.8
5.3
4.7
Dabur India
Accumulate
277
304
48,785
8,315
9,405
19.8
20.7
8.1
9.2
34.2
30.1
9.5
7.9
31.6
31.0
5.5
4.8
GlaxoSmith Con*
Neutral
5,195
-
21,846
4,350
4,823
21.2
21.4
179.2
196.5
29.0
26.4
7.7
6.5
27.1
26.8
4.4
3.9
Godrej Consumer
Neutral
1,603
-
54,605
10,235
11,428
18.4
18.6
41.1
44.2
39.0
36.3
8.7
7.3
24.9
24.8
5.4
4.8
HUL
Neutral
877
-
189,842
35,252
38,495
17.8
17.8
20.6
22.4
42.5
39.2
40.6
34.8
95.6
88.9
5.2
4.8
ITC
Accumulate
262
284
317,949
40,059
44,439
38.3
39.2
9.0
10.1
29.2
25.8
8.1
7.1
27.8
27.5
7.4
6.7
Marico
Accumulate
279
300
36,001
6,430
7,349
18.8
19.5
6.4
7.7
43.6
36.2
13.2
11.1
33.2
32.5
5.4
4.7
Nestle*
Neutral
6,175
-
59,532
10,073
11,807
20.7
21.5
124.8
154.2
49.5
40.0
20.3
18.3
34.8
36.7
5.7
4.9
Procter & Gamble
Neutral
7,024
-
22,801
2,939
3,342
23.2
23.0
146.2
163.7
48.0
42.9
12.2
10.1
25.3
23.5
7.3
6.3
Tata Global
Neutral
143
-
9,047
8,675
9,088
9.8
9.8
7.4
8.2
19.4
17.5
1.5
1.5
7.9
8.1
1.0
0.9
IT
HCL Tech^
Buy
853
1,000
120,328
49,242
57,168
20.5
20.5
55.7
64.1
15.3
13.3
3.1
2.4
20.3
17.9
2.3
1.9
Infosys
Buy
1,031
1,249
236,849
68,350
77,326
27.0
27.0
62.5
69.4
16.5
14.9
3.5
3.2
21.3
21.6
2.9
2.5
TCS
Accumulate
2,492
2,700
491,100
119,025
133,308
27.6
27.6
131.2
145.5
19.0
17.1
6.2
5.7
32.4
33.1
3.9
3.4
Tech Mahindra
Buy
504
600
49,061
29,673
32,937
15.5
17.0
32.8
39.9
15.4
12.6
3.0
2.6
19.6
20.7
1.4
1.2
Wipro
Buy
492
583
119,697
55,440
60,430
18.1
18.1
36.1
38.9
13.6
12.7
2.5
2.3
19.0
17.6
1.9
1.7
Media
D B Corp
Neutral
380
-
6,988
2,297
2,590
27.4
28.2
21.0
23.4
18.1
16.2
4.2
3.7
23.7
23.1
2.8
2.4
Hindustan Media Ven.
Neutral
270
-
1,980
1,016
1,138
24.3
25.2
27.3
30.1
9.9
9.0
1.9
1.7
16.2
15.8
1.3
1.1
HT Media
Neutral
83
-
1,932
2,693
2,991
12.6
12.9
7.9
9.0
10.5
9.2
0.9
0.8
7.8
8.3
0.3
0.2
Jagran Prakashan
Buy
190
225
6,218
2,355
2,635
28.0
28.0
10.8
12.5
17.6
15.2
3.8
3.3
21.7
21.7
2.7
2.3
Sun TV Network
Neutral
726
-
28,607
2,850
3,265
70.1
71.0
26.2
30.4
27.7
23.9
7.1
6.3
24.3
25.6
9.6
8.3
TV Today Network
Buy
260
344
1,552
567
645
26.7
27.0
15.4
18.1
16.9
14.4
2.5
2.2
14.9
15.2
2.3
1.9
Metal
Coal India
Neutral
322
-
199,661
84,638
94,297
21.4
22.3
24.5
27.1
13.1
11.9
5.5
5.2
42.6
46.0
1.9
1.7
Hind. Zinc
Neutral
312
-
131,978
14,252
18,465
55.9
48.3
15.8
21.5
19.8
14.5
3.2
2.8
17.0
20.7
9.3
7.1
Hindalco
Neutral
199
-
41,049
107,899
112,095
7.4
8.2
9.2
13.0
21.6
15.3
1.0
1.0
4.8
6.6
0.9
0.8
JSW Steel
Neutral
184
-
44,441
53,201
58,779
16.1
16.2
130.6
153.7
1.4
1.2
0.2
0.2
14.0
14.4
1.6
1.4
NMDC
Neutral
146
-
46,256
6,643
7,284
44.4
47.7
7.1
7.7
20.6
19.0
1.8
1.7
8.8
9.2
4.7
4.3
SAIL
Neutral
62
-
25,689
47,528
53,738
(0.7)
2.1
(1.9)
2.6
-
23.9
0.7
0.6
(1.6)
3.9
1.4
1.3
Tata Steel
Neutral
495
-
48,075
121,374
121,856
7.2
8.4
18.6
34.3
26.6
14.4
1.7
1.5
6.1
10.1
1.0
1.0
Vedanta
Neutral
268
-
79,306
71,744
81,944
19.2
21.7
13.4
20.1
20.0
13.3
1.7
1.5
8.4
11.3
1.5
1.2
March 6, 2017
19
Stock Watch | March 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales (` cr)
OPM (%)
EPS (`)
PER (x)
P/BV (x)
RoE (%)
EV/Sales (x)
(`)
Price (`)
(` cr)
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
Oil & Gas
Cairn India
Neutral
293
-
55,048
9,127
10,632
4.3
20.6
8.8
11.7
33.3
25.1
1.1
1.0
3.3
4.2
7.5
6.3
GAIL
Neutral
520
-
66,005
56,220
65,198
9.3
10.1
27.1
33.3
19.2
15.6
1.8
1.6
9.3
10.7
1.4
1.1
Indian Oil Corp
Neutral
375
-
182,121
373,359
428,656
5.9
5.5
54.0
59.3
6.9
6.3
1.1
1.0
16.0
15.6
0.6
0.5
ONGC
Neutral
193
-
247,682
137,222
152,563
15.0
21.8
19.5
24.1
9.9
8.0
0.8
0.8
8.5
10.1
2.1
1.9
Reliance Industries
Neutral
1,258
-
408,224
301,963
358,039
12.1
12.6
87.7
101.7
14.3
12.4
1.5
1.3
10.7
11.3
1.8
1.5
Pharmaceuticals
Alembic Pharma
Accumulate
603
689
11,360
3,483
4,244
20.2
21.4
24.3
33.6
24.8
17.9
5.6
4.5
25.5
25.3
3.2
2.5
Alkem Laboratories
Accumulate
2,139
2,257
25,574
6,065
7,009
18.7
20.0
80.2
92.0
26.7
23.3
6.0
5.0
22.5
21.6
4.2
3.6
Aurobindo Pharma
Buy
675
877
39,476
15,720
18,078
23.7
23.7
41.4
47.3
16.3
14.3
4.2
3.3
29.6
26.1
2.7
2.4
Aventis*
Neutral
4,301
-
9,905
2,277
2,597
17.3
18.3
149.4
172.0
28.8
25.0
4.8
3.8
25.1
28.8
4.0
3.3
Cadila Healthcare
Neutral
431
-
44,108
10,429
12,318
17.7
21.6
13.1
19.2
32.9
22.4
6.9
5.5
22.8
27.1
4.3
3.5
Cipla
Sell
588
465
47,267
15,378
18,089
15.7
16.8
19.3
24.5
30.4
24.0
3.6
3.1
12.3
13.9
3.2
2.7
Dishman Pharma
Neutral
222
-
3,584
1,718
1,890
22.7
22.8
9.5
11.3
23.4
19.7
2.3
2.0
10.1
10.9
2.5
2.2
Dr Reddy's
Neutral
2,872
-
47,582
16,043
18,119
18.0
23.0
78.6
130.9
36.5
21.9
3.6
3.1
10.1
15.2
2.7
2.6
GSK Pharma*
Neutral
2,705
-
22,915
2,800
3,290
10.2
20.6
32.2
60.3
84.0
44.9
15.5
15.4
17.2
34.5
8.0
6.8
Indoco Remedies
Reduce
266
240
2,451
1,112
1,289
16.2
18.2
11.6
16.0
22.9
16.6
3.7
3.1
17.0
20.1
2.3
1.9
Ipca labs
Accumulate
550
613
6,938
3,258
3,747
12.8
15.3
12.1
19.2
45.4
28.6
2.8
2.6
6.4
9.5
2.3
2.0
Lupin
Buy
1,471
1,809
66,431
17,296
20,304
26.4
26.7
63.9
76.4
23.0
19.3
4.8
3.9
23.3
22.4
3.9
3.2
Sun Pharma
Buy
686
847
164,539
31,129
35,258
32.0
32.9
30.2
35.3
22.7
19.4
3.7
3.0
20.0
20.1
4.9
4.1
Power
NTPC
Neutral
156
-
128,464
86,605
95,545
17.5
20.8
11.8
13.4
13.2
11.6
1.3
1.3
10.5
11.1
2.8
2.8
Power Grid
Buy
191
223
99,871
25,315
29,193
88.2
88.7
14.2
17.2
13.5
11.1
2.0
1.8
15.2
16.1
8.6
7.7
Tata Power
Neutral
82
-
22,152
36,916
39,557
17.4
27.1
5.1
6.3
16.1
13.0
1.4
1.3
9.0
10.3
1.6
1.4
Real Estate
MLIFE
Buy
345
522
1,416
1,152
1,300
22.7
24.6
29.9
35.8
11.5
9.6
0.9
0.8
7.6
8.6
1.9
1.6
Prestige Estate
Buy
172
210
6,443
4,707
5,105
25.2
26.0
10.3
13.0
16.7
13.2
1.3
1.2
10.3
10.2
2.5
2.2
Telecom
Bharti Airtel
Neutral
356
-
142,148
105,086
114,808
34.5
34.7
12.2
16.4
29.1
21.7
2.0
1.8
6.8
8.4
2.3
2.0
Idea Cellular
Neutral
111
-
39,855
40,133
43,731
37.2
37.1
6.4
6.5
17.3
17.0
1.4
1.3
8.2
7.6
2.0
1.7
Others
Abbott India
Neutral
4,476
-
9,511
3,153
3,583
14.1
14.4
152.2
182.7
29.4
24.5
144.4
123.3
25.6
26.1
2.7
2.3
Asian Granito
Buy
280
351
841
1,060
1,169
12.2
12.5
12.7
15.9
22.1
17.6
2.1
1.9
9.5
10.6
1.1
0.9
Bajaj Electricals
Accumulate
258
274
2,611
4,801
5,351
5.7
6.2
10.4
13.7
24.8
18.9
3.1
2.7
12.4
14.5
0.5
0.5
Banco Products (India)
Neutral
201
-
1,436
1,353
1,471
12.3
12.4
14.5
16.3
13.9
12.3
19.1
17.2
14.5
14.6
1.0
0.9
Coffee Day Enterprises
Neutral
234
-
4,827
2,964
3,260
20.5
21.2
4.7
8.0
-
29.3
2.7
2.5
5.5
8.5
2.0
1.8
Competent Automobiles Neutral
166
-
102
1,137
1,256
3.1
2.7
28.0
23.6
5.9
7.0
32.0
28.9
14.3
11.5
0.1
0.1
Elecon Engineering
Neutral
53
-
598
1,482
1,660
13.7
14.5
3.9
5.8
13.7
9.2
3.2
2.9
7.8
10.9
0.7
0.6
Finolex Cables
Neutral
439
-
6,708
2,883
3,115
12.0
12.1
14.2
18.6
30.9
23.6
16.4
14.4
15.8
14.6
2.0
1.8
March 6, 2017
20
Stock Watch | March 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales (` cr)
OPM (%)
EPS (`)
PER (x)
P/BV (x)
RoE (%)
EV/Sales (x)
(`)
Price (`)
(` cr)
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
FY17E
FY18E
Garware Wall Ropes
Accumulate
672
710
1,469
863
928
15.1
15.2
36.4
39.4
18.4
17.0
3.3
2.8
17.5
15.9
1.6
1.5
Goodyear India*
Neutral
723
-
1,667
1,598
1,704
10.4
10.2
49.4
52.6
14.6
13.7
67.6
59.3
18.2
17.0
0.7
0.6
Hitachi
Neutral
1,456
-
3,959
2,081
2,433
8.8
8.9
33.4
39.9
43.6
36.5
35.2
29.3
22.1
21.4
1.9
1.6
HSIL
Neutral
324
-
2,340
2,384
2,515
15.8
16.3
15.3
19.4
21.2
16.7
21.0
18.1
7.8
9.3
1.1
1.0
Interglobe Aviation
Neutral
859
-
31,054
21,122
26,005
14.5
27.6
110.7
132.1
7.8
6.5
46.4
33.2
168.5
201.1
1.4
1.1
Jyothy Laboratories
Neutral
362
-
6,583
1,440
2,052
11.5
13.0
8.5
10.0
42.6
36.2
10.3
9.6
18.6
19.3
4.8
3.4
Kirloskar Engines India
Neutral
377
-
5,458
2,554
2,800
9.9
10.0
10.5
12.1
35.9
31.2
15.0
14.2
10.7
11.7
1.8
1.6
Linc Pen & Plastics
Neutral
242
-
357
382
420
9.3
9.5
13.5
15.7
17.9
15.4
3.1
2.7
17.1
17.3
1.0
0.9
M M Forgings
Neutral
469
-
566
546
608
20.4
20.7
41.3
48.7
11.4
9.6
64.2
56.9
16.6
17.0
0.9
0.8
Manpasand Bever.
Neutral
737
-
4,217
836
1,087
19.6
19.4
16.9
23.8
43.6
31.0
5.2
4.6
12.0
14.8
4.8
3.6
Mirza International
Buy
89
107
1,072
963
1,069
17.2
18.0
6.1
7.5
14.5
11.9
2.2
1.9
15.0
15.7
1.3
1.2
MT Educare
Neutral
96
-
382
366
417
17.7
18.2
9.4
10.8
10.2
8.9
2.3
2.0
22.2
22.3
0.9
0.8
Narayana Hrudaya
Neutral
324
-
6,621
1,873
2,166
11.5
11.7
2.6
4.0
122.5
81.7
7.5
6.8
6.1
8.3
3.6
3.1
Navkar Corporation
Buy
162
265
2,311
369
561
42.9
42.3
6.9
11.5
23.5
14.1
1.6
1.5
7.3
10.5
7.3
4.8
Navneet Education
Neutral
144
-
3,369
1,062
1,147
24.0
24.0
6.1
6.6
23.7
21.8
4.9
4.3
20.5
19.8
3.2
3.0
Nilkamal
Neutral
1,967
-
2,936
1,995
2,165
10.7
10.4
69.8
80.6
28.2
24.4
112.4
97.7
16.6
16.5
1.5
1.3
Page Industries
Neutral
14,241
-
15,884
2,450
3,124
20.1
17.6
299.0
310.0
47.6
45.9
317.2
242.1
47.1
87.5
6.5
5.1
Parag Milk Foods
Neutral
225
-
1,896
1,919
2,231
9.3
9.6
9.4
12.9
23.9
17.4
3.7
3.1
15.5
17.5
1.1
1.0
Quick Heal
Neutral
244
-
1,712
408
495
27.3
27.0
7.7
8.8
31.5
27.8
2.9
2.9
9.3
10.6
3.3
2.8
Radico Khaitan
Accumulate
128
147
1,702
1,667
1,824
13.0
13.2
6.6
8.2
19.2
15.6
1.7
1.6
9.0
10.2
1.4
1.3
Relaxo Footwears
Neutral
439
-
5,277
2,085
2,469
9.2
8.2
7.6
7.9
58.1
55.3
22.5
19.2
17.9
18.8
2.6
2.2
S H Kelkar & Co.
Neutral
289
-
4,176
1,036
1,160
15.1
15.0
6.1
7.2
47.3
40.2
5.1
4.6
10.7
11.5
3.9
3.4
Siyaram Silk Mills
Accumulate
1,693
1,872
1,587
1,652
1,857
11.6
11.7
92.4
110.1
18.3
15.4
2.7
2.3
14.7
15.2
1.2
1.0
Styrolution ABS India*
Neutral
612
-
1,076
1,440
1,537
9.2
9.0
40.6
42.6
15.1
14.4
38.5
35.0
12.3
11.6
0.7
0.6
Surya Roshni
Neutral
187
-
822
3,342
3,625
7.8
7.5
17.3
19.8
10.9
9.5
20.6
16.5
10.5
10.8
0.5
0.4
Team Lease Serv.
Neutral
870
-
1,488
3,229
4,001
1.5
1.8
22.8
32.8
38.2
26.5
4.1
3.5
10.7
13.4
0.4
0.3
The Byke Hospitality
Neutral
166
-
667
287
384
20.5
20.5
7.6
10.7
21.9
15.5
4.6
3.7
20.7
23.5
2.3
1.7
Transport Corporation
Neutral
200
-
1,535
2,671
2,911
8.5
8.8
13.9
15.7
14.5
12.8
2.0
1.8
13.7
13.8
0.7
0.6
TVS Srichakra
Neutral
2,951
-
2,259
2,304
2,614
13.7
13.8
231.1
266.6
12.8
11.1
331.5
261.0
33.9
29.3
1.0
0.8
UFO Moviez
Neutral
398
-
1,098
619
685
33.2
33.4
30.0
34.9
13.3
11.4
1.8
1.6
13.8
13.9
1.5
1.2
Visaka Industries
Neutral
237
-
377
1,051
1,138
10.3
10.4
21.0
23.1
11.3
10.2
30.4
28.5
9.0
9.2
0.6
0.6
VRL Logistics
Neutral
289
-
2,639
1,902
2,119
16.7
16.6
14.6
16.8
19.9
17.2
4.3
3.8
21.9
22.2
1.5
1.3
Wonderla Holidays
Neutral
378
-
2,137
287
355
38.0
40.0
11.3
14.2
33.5
26.6
4.8
4.2
21.4
23.9
7.1
5.8
Source: Company, Angel Research, Note: *December year end; #September year end;
&October year end; ^June year end; Price as of March 3, 2017
March 6, 2017
21
Top Picks Report | March 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)