Market Outlook
October 04, 2016
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open flat tracking SGX Nifty and ahead of monetary
BSE Sensex
1.4
377
28,243
policy outcome markets may remain directionless.
Nifty
1.5
127
8,738
Mid Cap
2.4
316
13,483
The US markets ended marginally lower, after gaining strong on Friday. Investors
would further wait for job data to be released this week, before taking further action.
Small Cap
2.7
341
13,122
Bankex
1.6
351
22,397
Primarily European indices closed higher, on the back of easing concern over the
penalty on Deutsche Bank.
Global Indices
Chg (%)
(Pts)
(Close)
Indian equity indices gained significantly backed by short covering ahead of the
monetary policy on Tuesday. This being the first policy meets by the Governor;
Dow Jones
(0.3)
(54)
18,254
market participants will be keenly watching the undertone of the Governor. Further
Nasdaq
(0.2)
(11)
5,300
the news of Pakistan and Indian NSA talking to reduce the tension also improved the
FTSE
1.22)
84
6,983
sentiment, leading to the rally.
Nikkei
0.9
149
16,599
News Analysis
Hang Seng
1.2
287
23,584
Hero MotoCorp reports highest ever sales in a month, up 11%
Shanghai Com
0.2
6
3,005
Detailed analysis on Pg2
Investor’s Ready Reckoner
Advances / Declines
BSE
NSE
Key Domestic & Global Indicators
Advances
2,233
1,436
Stock Watch: Latest investment recommendations on 150+ stocks
Declines
677
195
Refer Pg5 onwards
Unchanged
116
63
Top Picks
Volumes (` Cr)
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
BSE
3,841
Amara Raja Batteries Auto & Auto Ancillary Accumulate
1,029
1,174
14.1
NSE
20,433
HCL Tech
IT
Buy
809
1,000
23.6
Bharat Electronics
Capital Goods
Accumulate
1,273
1,414
11.1
Equitas Holdings
Financials
Buy
184
235
28.0
Net Inflows (` Cr)
Net
Mtd
Ytd
Navkar Corporation Others
Buy
192
265
38.2
FII
34
34
NA
More Top Picks on Pg3
MFs
198
198
NA
Key Upcoming Events
Previous
Consensus
Top Gainers
Date
Region
Event Description
Price (`)
Chg (%)
Reading
Expectations
Hathway
31
19.9
Oct 04 UK
PMI Manufacturing
53.30
52.10
Oct 04 India
RBI Repo rate
6.50
6.50
J&Kbank
88
13.2
Oct 04 US
Initial Jobless claims
254.00
255.00
Gsfc
84
9.7
Oct 05 India
RBI Cash Reserve ratio
4.00
4.00
Rtnpower
9
9.5
Oct 06 Germany
PMI Services
50.60
50.60
Hindzinc
255
9.2
Oct 07 UK
Industrial Production (YoY)
2.10
1.30
Oct 07 US
Change in Nonfarm payrolls
151.00
170.00
Top Losers
Price (`)
Chg (%)
Oct 07 US
Unemployment rate
4.90
4.90
6.(
More Events on Pg4
Unitdspr
2,424
(1.6)
Tcs
2,412
(0.6)
Infratel
363
(0.6)
Vakrangee
238
(0.6)
Indhotel
130
(0.5)
As on October 03, 2016
Market Outlook
October 04, 2016
News Analysis
Hero MotoCorp reports highest ever sales in a month, up 11%
HeroMotoCorp India’s largest two wheeler manufacturer reported a significant
milestone by clocking its highest ever sales in a month. The company sold
6,74,961 units in September, 2016 a growth of 11% over the same period last
year, when it had sold 6,06,744 units. The previous highest sales in a single
month was 6,39,802 units in October, 2015.
This is the second consecutive month that Hero has sold six lakh plus units. It had
reported sales of 6,16,424 units in August, 2016.The growth rate is likely to
remain strong in the coming months as well due to expected off take in the festive
period.
Economic and Political News
IT collections will not fall short in FY18 says, Finance minister Arun Jaitley
Low wages causing labour shortage in Indian jewellery sector
UAE supports Indian action against terrorists post Uri attacks
Coal ministry identifies seven big blocks for allotment to six states
Manufacturing PMI moderates in September
Centre & Maharashtra agree on Mega refinery on Konkan region
India’s GDP growth to remain strong, says World Bank
Corporate News
Escorts tractor sales up 37.8% in September, 2016.
TVS Motor two wheeler sales up 30.1% in September,2016
Mahindra CIE interested in Amtek Autos assets
Market Outlook
October 04, 2016
Top Picks ★★★★★
Large Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
To outpace battery industry growth due to better technological
Amara Raja Batteries
17,578
1,029
1,174
14.1
products leading to market share gains in both the
automotive OEM and replacement segments.
Uptick in defense capex by government when coupled with
Bharat Electronics
30,550
1,273
1,414
11.1
BELs strong market positioning, indicate that good times are
ahead for BEL.
The stock is trading at attractive valuations and is factoring all
HCL Tech
1,14,102
809
1,000
23.6
the bad news.
Back on the growth trend, expect a long term growth of 14%
Infosys
2,38,388
1,038
1,370
32.0
to be a US$20bn in FY2020.
Source: Company, Angel Research
Mid Cap
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
Among the top 4 players in the consumer durables segment.
Bajaj Electricals
2,582
256
306
19.8
Improved profitability backed by turn around in E&P
segment. Strong order book lends earnings visibility.
With a focus on the low and medium income (LMI) consumer
Dewan Housing Finance
8,631
296
325
9.9
segment, the company has increased its presence in tier-II &
III cities where the growth opportunity is immense.
Strong loan growth backed by diversified loan portfolio and
adequate CAR. ROE & ROA likely to remain decent as risk of
Equitas Holdings
6,159
184
235
28.0
dilution remains low. Attractive valuations considering
growth.
Economic recovery to have favourable impact on advertising
& circulation revenue growth. Further, the acquisition of a
Jagran Prakashan
6,244
191
225
17.8
radio business (Radio City) would also boost the company's
revenue growth.
Speedier execution and speedier sales, strong revenue
Mahindra Lifespace
1,802
439
522
18.9
visibilty in short-to-long run, attractive valuations
Massive capacity expansion along with rail advantage at ICD
Navkar Corporation
2,734
192
265
38.2
as well CFS augurs well for the company
Strong brands and distribution network would boost growth
Siyaram Silk Mills
1,202
1,282
1,469
14.6
going ahead. Stock currently trades at an inexpensive
valuation.
Market leadership in Hindi news genre and no. 2 viewership
ranking in English news genre, exit from the radio business,
TV Today Network
1,849
310
363
17.1
and anticipated growth in ad spends by corporates to benefit
the stock.
Source: Company, Angel Research
Market Outlook
October 04, 2016
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
9.0
12.0
8.3
9.9
7.8
7.9
8.0
7.5
7.5
7.6
10.0
7.2
7.1
8.0
6.6
6.7
7.0
6.4
6.0
3.7
5.8
6.0
4.0
1.9
2.0
1.1
2.0
0.3
5.0
-
4.0
(2.0)
(0.9)
(1.3)
(1.6)
(4.0)
(2.4)
3.0
(3.4)
(6.0)
Source: CSO, Angel Research
Source: MOSPI, Angel Research
Exhibit 3: Monthly CPI inflation trends
Exhibit 4: Manufacturing and services PMI
56.0
Mfg. PMI
Services PMI
(%)
55.0
7.0
6.1
5.7
5.8
5.8
54.0
6.0
5.4
5.6
5.5
5.0
5.3
5.1
53.0
4.8
5.0
4.4
52.0
4.0
51.0
50.0
3.0
49.0
2.0
48.0
1.0
47.0
-
46.0
Source: MOSPI, Angel Research
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Exhibit 5: Exports and imports growth trends
Exhibit 6: Key policy rates
(%)
Exports yoy growth
Imports yoy growth
(%)
Repo rate
Reverse Repo rate
CRR
5.0
7.00
0.0
6.50
(5.0)
6.00
(10.0)
5.50
(15.0)
5.00
(20.0)
4.50
(25.0)
4.00
(30.0)
3.50
(35.0)
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
Stock Watch
October 04, 2016
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
236
-
4,598
1,937
2,164
13.3
14.3
9.0
11.0
26.3
21.5
4.6
4.0
18.4
19.8
2.4
2.1
United Phosphorus
Neutral
681
-
34,503
15,176
17,604
18.5
18.5
37.4
44.6
18.2
15.3
3.6
3.0
21.4
21.2
2.4
2.0
Auto & Auto Ancillary
Ashok Leyland
Buy
83
111
23,592
22,407
26,022
10.6
10.6
5.2
6.4
15.9
12.9
3.6
3.0
23.6
24.7
1.1
1.0
Bajaj Auto
Neutral
2,883
-
83,411
25,093
27,891
19.5
19.2
143.9
162.5
20.0
17.7
5.6
4.8
30.3
29.4
3.1
2.7
Bharat Forge
Neutral
940
-
21,892
7,726
8,713
20.5
21.2
35.3
42.7
26.6
22.0
4.9
4.4
18.9
20.1
2.9
2.5
Eicher Motors
Neutral
25,796
-
70,066
16,583
20,447
17.5
18.0
598.0
745.2
43.1
34.6
14.7
11.2
41.2
38.3
4.1
3.2
Gabriel India
Neutral
121
-
1,735
1,544
1,715
9.0
9.3
5.4
6.3
22.4
19.2
4.2
3.7
18.9
19.5
1.1
1.0
Hero Motocorp
Neutral
3,523
-
70,350
31,253
35,198
15.3
15.0
172.3
192.1
20.5
18.3
7.5
6.4
38.9
37.0
2.1
1.9
Jamna Auto Industries Neutral
219
-
1,748
1,486
1,620
9.8
9.9
15.0
17.2
14.6
12.7
3.2
2.7
21.8
21.3
1.2
1.1
L G Balakrishnan & Bros Neutral
583
-
916
1,302
1,432
11.6
11.9
43.7
53.0
13.4
11.0
1.9
1.7
13.8
14.2
0.8
0.7
Mahindra and Mahindra Neutral
1,443
-
89,627
46,534
53,077
11.6
11.7
67.3
78.1
21.4
18.5
3.5
3.0
15.4
15.8
1.9
1.6
Maruti
Neutral
5,682
-
171,637
69,186
82,217
14.7
14.4
198.5
241.4
28.6
23.5
5.6
4.5
20.2
20.0
2.2
1.8
Minda Industries
Neutral
312
-
2,474
2,728
3,042
9.0
9.1
68.2
86.2
4.6
3.6
1.0
0.8
23.8
24.3
1.0
0.8
Motherson Sumi
Neutral
329
-
46,214
45,896
53,687
7.8
8.3
13.0
16.1
25.3
20.5
8.1
6.5
34.7
35.4
1.1
0.9
Rane Brake Lining
Neutral
1,190
-
942
511
562
11.3
11.5
28.1
30.9
42.4
38.5
6.5
5.9
15.3
15.0
2.0
1.8
Setco Automotive
Neutral
43
-
572
741
837
13.0
13.0
15.2
17.0
2.8
2.5
0.5
0.4
15.8
16.3
1.2
1.0
Tata Motors
Neutral
541
-
156,111
300,209
338,549
8.9
8.4
42.7
54.3
12.7
10.0
2.0
1.7
15.6
17.2
0.6
0.5
TVS Motor
Neutral
378
-
17,942
13,390
15,948
6.9
7.1
12.8
16.5
29.6
22.8
7.4
5.8
26.3
27.2
1.4
1.1
Amara Raja Batteries
Accumulate
1,029
1,174
17,578
5,429
6,471
17.5
17.6
35.3
43.5
29.2
23.7
6.7
5.4
25.3
24.8
3.1
2.5
Exide Industries
Neutral
188
-
16,010
7,439
8,307
15.0
15.0
8.1
9.3
23.3
20.3
3.3
2.9
14.3
16.7
1.8
1.6
Apollo Tyres
Neutral
224
-
11,389
12,877
14,504
14.3
13.9
21.4
23.0
10.4
9.7
1.6
1.4
16.4
15.2
1.1
1.0
Ceat
Neutral
1,364
-
5,518
7,524
8,624
13.0
12.7
131.1
144.3
10.4
9.5
1.9
1.6
19.8
18.6
0.8
0.7
JK Tyres
Neutral
150
-
3,404
7,455
8,056
15.0
15.0
21.8
24.5
6.9
6.1
1.4
1.2
22.8
21.3
0.6
0.5
Swaraj Engines
Neutral
1,263
-
1,569
660
810
15.2
16.4
54.5
72.8
23.2
17.4
7.2
6.6
31.5
39.2
2.2
1.8
Subros
Neutral
132
-
791
1,488
1,681
11.7
11.9
6.4
7.2
20.6
18.4
2.2
2.0
10.8
11.4
0.8
0.7
Indag Rubber
Neutral
183
-
481
286
326
19.8
16.8
11.7
13.3
15.7
13.8
2.7
2.5
17.8
17.1
1.4
1.2
Capital Goods
ACE
Neutral
45
-
449
709
814
4.1
4.6
1.4
2.1
32.4
21.6
1.3
1.3
4.4
6.0
0.8
0.7
BEML
Buy
902
1,157
3,757
3,451
4,055
6.3
9.2
31.4
57.9
28.7
15.6
1.7
1.6
6.3
10.9
1.2
1.0
Bharat Electronics
Accumulate
1,273
1,414
30,550
8,137
9,169
16.8
17.2
58.7
62.5
21.7
20.4
3.4
3.0
44.6
46.3
2.7
2.5
Stock Watch
October 04, 2016
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
Voltas
Neutral
389
-
12,860
6,511
7,514
7.9
8.7
12.9
16.3
30.1
23.8
5.4
4.8
16.7
18.5
1.7
1.5
BGR Energy
Neutral
113
-
812
16,567
33,848
6.0
5.6
7.8
5.9
14.4
19.1
0.8
0.8
4.7
4.2
0.2
0.1
BHEL
Neutral
137
-
33,581
28,797
34,742
-
2.8
2.3
6.9
59.7
19.9
1.0
1.0
1.3
4.8
0.8
0.6
Blue Star
Neutral
574
-
5,473
4,351
5,024
6.4
7.1
17.2
20.6
33.4
27.8
21.7
18.1
23.1
24.1
1.3
1.1
Crompton Greaves
Neutral
79
-
4,926
5,777
6,120
5.9
7.0
3.3
4.5
23.8
17.5
1.1
1.0
4.4
5.9
0.8
0.7
Greaves Cotton
Neutral
130
-
3,169
1,755
1,881
16.8
16.9
7.8
8.5
16.6
15.3
3.3
3.1
20.6
20.9
1.5
1.4
Inox Wind
Buy
209
286
4,641
5,605
6,267
15.7
16.4
24.8
30.0
8.4
7.0
2.4
1.7
25.9
24.4
0.9
0.7
KEC International
Neutral
126
-
3,244
9,294
10,186
7.9
8.1
9.9
11.9
12.8
10.6
1.9
1.6
15.6
16.3
0.6
0.5
Thermax
Neutral
879
-
10,477
5,421
5,940
7.3
7.3
25.7
30.2
34.2
29.1
4.1
3.8
12.2
13.1
1.8
1.7
VATech Wabag
Buy
564
681
3,076
3,136
3,845
8.9
9.1
26.0
35.9
21.7
15.7
2.7
2.3
13.4
15.9
0.9
0.7
Cement
ACC
Neutral
1,634
-
30,683
11,225
13,172
13.2
16.9
44.5
75.5
36.7
21.6
3.5
3.2
11.2
14.2
2.7
2.3
Ambuja Cements
Neutral
259
-
51,418
9,350
10,979
18.2
22.5
5.8
9.5
44.7
27.3
3.8
3.4
10.2
12.5
5.5
4.7
India Cements
Neutral
151
-
4,643
4,364
4,997
18.5
19.2
7.9
11.3
19.1
13.4
1.4
1.3
8.0
8.5
1.8
1.6
JK Cement
Neutral
885
-
6,189
4,398
5,173
15.5
17.5
31.2
55.5
28.4
16.0
3.4
3.0
12.0
15.5
2.0
1.6
J K Lakshmi Cement
Neutral
497
-
5,854
2,913
3,412
14.5
19.5
7.5
22.5
66.3
22.1
4.1
3.4
12.5
18.0
2.6
2.2
Orient Cement
Neutral
221
-
4,536
2,114
2,558
18.5
20.5
8.1
11.3
27.3
19.6
4.0
3.4
9.0
14.0
2.8
2.2
UltraTech Cement
Neutral
3,927
-
107,758
25,768
30,385
21.0
23.5
111.0
160.0
35.4
24.5
4.5
4.0
13.5
15.8
4.3
3.6
Construction
ITNL
Neutral
103
-
3,390
8,946
10,017
31.0
31.6
8.1
9.1
12.7
11.3
0.5
0.5
4.2
5.0
3.7
3.4
KNR Constructions
Accumulate
761
802
2,141
1,385
1,673
14.7
14.0
41.2
48.5
18.5
15.7
3.4
3.0
14.9
15.2
1.6
1.3
Larsen & Toubro
Buy
1,470
1,700
136,991
67,665
77,249
10.7
11.5
57.3
71.2
25.7
20.6
2.4
2.2
12.6
14.3
2.2
1.9
Gujarat Pipavav Port
Neutral
175
-
8,458
705
788
52.2
51.7
5.0
5.6
35.0
31.2
3.5
3.1
11.2
11.2
11.7
9.9
Nagarjuna Const.
Neutral
85
-
4,739
8,842
9,775
9.1
8.8
5.3
6.4
16.1
13.3
1.3
1.2
8.2
9.1
0.7
0.6
PNC Infratech
Buy
116
143
2,987
2,350
2,904
13.1
13.2
9.0
8.8
12.9
13.2
0.5
0.4
15.9
13.9
1.4
1.1
Simplex Infra
Neutral
337
-
1,666
6,829
7,954
10.5
10.5
31.4
37.4
10.7
9.0
1.1
1.0
9.9
13.4
0.7
0.6
Power Mech Projects
Neutral
496
-
730
1,801
2,219
12.7
14.6
72.1
113.9
6.9
4.4
1.3
1.1
16.8
11.9
0.4
0.3
Sadbhav Engineering
Neutral
285
-
4,886
3,598
4,140
10.3
10.6
9.0
11.9
31.7
23.9
3.3
2.9
9.9
11.9
1.6
1.4
NBCC
Neutral
259
-
15,546
7,428
9,549
7.9
8.6
8.2
11.0
31.6
23.6
1.6
1.2
28.2
28.7
1.8
1.3
MEP Infra
Neutral
42
-
686
1,877
1,943
30.6
29.8
3.0
4.2
14.1
10.1
6.8
4.6
0.6
0.6
1.7
1.6
SIPL
Neutral
107
-
3,783
1,036
1,252
65.5
66.2
(8.4)
(5.6)
4.0
4.6
(22.8)
(15.9)
11.9
9.9
Stock Watch
October 04, 2016
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
Engineers India
Neutral
254
-
8,568
1,725
1,935
16.0
19.1
11.4
13.9
22.3
18.3
3.1
3.0
13.4
15.3
3.9
3.5
Financials
Axis Bank
Neutral
551
-
131,498
58,081
66,459
3.5
3.5
32.4
44.6
17.0
12.3
2.2
1.9
13.6
16.5
-
-
Bank of Baroda
Neutral
169
-
38,883
19,980
23,178
1.8
1.8
11.5
17.3
14.7
9.8
1.7
1.4
8.3
10.1
-
-
Canara Bank
Neutral
319
-
17,340
15,225
16,836
1.8
1.8
14.5
28.0
22.0
11.4
1.5
1.2
5.8
8.5
-
-
Dewan Housing Finance Accumulate
296
325
8,631
2,225
2,688
2.9
2.9
29.7
34.6
10.0
8.6
1.6
1.4
16.1
16.8
-
-
Equitas Holdings
Buy
184
235
6,159
939
1,281
11.7
11.5
5.8
8.2
31.7
22.4
2.7
2.4
10.9
11.5
-
-
Federal Bank
Neutral
75
-
12,800
9,353
10,623
2.9
2.9
4.4
5.8
16.9
12.8
1.6
1.4
9.5
11.0
-
-
HDFC
Neutral
1,425
-
225,303
11,475
13,450
3.4
3.4
45.3
52.5
31.5
27.1
6.1
5.4
20.2
20.5
-
-
HDFC Bank
Neutral
1,287
-
325,797
46,097
55,433
4.5
4.5
58.4
68.0
22.0
18.9
3.9
3.2
18.8
18.6
-
-
ICICI Bank
Neutral
256
-
148,942
39,029
45,903
3.3
3.3
16.7
16.3
15.3
15.7
1.9
1.7
10.1
12.4
-
-
LIC Housing Finance
Neutral
593
-
29,934
3,712
4,293
2.6
2.5
39.0
46.0
15.2
12.9
2.9
2.4
19.9
20.1
-
-
Punjab Natl.Bank
Neutral
144
-
30,558
23,532
23,595
2.3
2.4
6.8
12.6
21.1
11.4
3.3
2.3
3.3
6.5
-
-
RBL Bank
Accumulate
298
325
11,006
1,783
2,309
2.6
2.6
12.7
16.4
23.4
18.2
2.6
2.3
12.8
13.3
-
-
South Ind.Bank
Neutral
23
-
3,126
6,435
7,578
2.5
2.5
2.7
3.1
8.6
7.5
1.1
0.9
10.1
11.2
-
-
St Bk of India
Neutral
255
-
198,106
88,650
98,335
2.6
2.6
13.5
18.8
18.9
13.6
1.8
1.6
7.0
8.5
-
-
Union Bank
Neutral
143
-
9,858
13,450
14,925
2.3
2.3
25.5
34.5
5.6
4.2
0.8
0.7
7.5
10.2
-
-
Yes Bank
Neutral
1,271
-
53,513
8,978
11,281
3.3
3.4
74.0
90.0
17.2
14.1
3.3
2.8
17.0
17.2
-
-
FMCG
Asian Paints
Neutral
1,192
-
114,298
17,128
18,978
16.8
16.4
19.1
20.7
62.4
57.6
21.7
20.5
34.8
35.5
6.6
5.9
Britannia
Neutral
3,483
-
41,786
9,795
11,040
14.6
14.9
80.3
94.0
43.4
37.1
17.8
13.8
41.2
-
4.1
3.6
Colgate
Neutral
983
-
26,744
4,605
5,149
23.4
23.4
23.8
26.9
41.3
36.6
22.9
17.9
64.8
66.8
5.7
5.1
Dabur India
Neutral
276
-
48,587
8,315
9,405
19.8
20.7
8.1
9.2
34.1
30.0
9.5
7.9
31.6
31.0
5.5
4.8
GlaxoSmith Con*
Neutral
6,193
-
26,045
4,350
4,823
21.2
21.4
179.2
196.5
34.6
31.5
9.2
7.8
27.1
26.8
5.4
4.8
Godrej Consumer
Neutral
1,639
-
55,825
10,235
11,428
18.4
18.6
41.1
44.2
39.9
37.1
8.9
7.5
24.9
24.8
5.5
4.9
HUL
Neutral
869
-
188,030
35,252
38,495
17.6
17.4
20.4
21.9
42.5
39.7
35.0
30.7
82.2
77.3
5.2
4.7
ITC
Buy
242
283
292,234
40,059
44,439
39.0
39.2
9.1
10.1
26.6
24.0
7.3
6.4
27.2
26.5
6.8
6.1
Marico
Neutral
282
-
36,402
6,430
7,349
18.8
19.5
6.4
7.7
44.1
36.6
13.3
11.2
33.2
32.5
5.5
4.7
Nestle*
Neutral
6,597
-
63,603
10,073
11,807
20.7
21.5
124.8
154.2
52.9
42.8
21.7
19.5
34.8
36.7
6.1
5.2
Tata Global
Neutral
142
-
8,984
8,675
9,088
9.8
9.8
7.4
8.2
19.2
17.4
2.2
2.1
7.9
8.1
1.0
0.9
Procter & Gamble
Accumulate
6,865
7,369
22,286
2,939
3,342
23.2
23.0
146.2
163.7
47.0
41.9
105.1
100.8
25.3
23.5
7.1
6.2
Hygiene
Stock Watch
October 04, 2016
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
IT
HCL Tech^
Buy
809
1,000
114,102
49,242
57,168
20.5
20.5
55.7
64.1
14.5
12.6
3.0
2.3
20.3
17.9
2.2
1.8
Infosys
Buy
1,038
1,370
238,388
69,934
79,025
27.5
27.5
64.8
72.0
16.0
14.4
3.5
3.2
22.0
22.3
2.9
2.5
TCS
Buy
2,412
3,004
475,228
121,684
136,286
27.3
27.3
135.0
150.1
17.9
16.1
5.9
5.5
33.2
33.9
3.7
3.2
Tech Mahindra
Buy
421
700
40,856
30,347
33,685
17.0
17.0
37.5
41.3
11.2
10.2
2.5
2.1
21.8
20.7
1.1
0.9
Wipro
Buy
479
680
116,322
51,631
55,822
21.7
17.9
35.9
36.9
13.3
13.0
2.8
2.6
19.0
18.1
1.9
1.7
Media
D B Corp
Neutral
396
-
7,270
2,297
2,590
27.4
28.2
21.0
23.4
18.8
16.9
4.4
3.8
23.7
23.1
3.0
2.6
HT Media
Neutral
84
-
1,948
2,693
2,991
12.6
12.9
7.9
9.0
10.6
9.3
0.9
0.8
7.8
8.3
0.3
0.2
Jagran Prakashan
Buy
191
225
6,244
2,355
2,635
28.0
28.0
10.8
12.5
17.7
15.3
3.8
3.3
21.7
21.7
2.7
2.3
Sun TV Network
Neutral
530
-
20,890
2,850
3,265
70.1
71.0
26.2
30.4
20.2
17.4
5.2
4.6
24.3
25.6
6.9
5.9
Hindustan Media
Neutral
290
-
2,127
1,016
1,138
24.3
25.2
27.3
30.1
10.6
9.6
2.0
1.8
16.2
15.8
1.4
1.2
Ventures
TV Today Network
Buy
310
363
1,849
637
743
27.5
27.5
18.4
21.4
16.9
14.5
2.9
2.5
17.4
17.2
2.5
2.1
Metals & Mining
Coal India
Neutral
328
-
207,082
84,638
94,297
21.4
22.3
24.5
27.1
13.4
12.1
5.6
5.3
42.6
46.0
2.0
1.8
Hind. Zinc
Neutral
255
-
107,640
14,252
18,465
55.9
48.3
15.8
21.5
16.1
11.9
2.6
2.3
17.0
20.7
7.6
5.8
Hindalco
Neutral
154
-
31,821
107,899
112,095
7.4
8.2
9.2
13.0
16.8
11.9
0.8
0.8
4.8
6.6
0.8
0.8
JSW Steel
Neutral
1,768
-
42,738
53,201
58,779
16.1
16.2
130.6
153.7
13.5
11.5
1.8
1.6
14.0
14.4
1.6
1.4
NMDC
Neutral
108
-
42,997
6,643
7,284
44.4
47.7
7.1
7.7
15.3
14.1
1.3
1.3
8.8
9.2
4.2
3.8
SAIL
Neutral
48
-
19,824
47,528
53,738
(0.7)
2.1
(1.9)
2.6
18.5
0.5
0.5
(1.6)
3.9
1.3
1.2
Vedanta
Neutral
179
-
52,994
71,744
81,944
19.2
21.7
13.4
20.1
13.3
8.9
1.1
1.0
8.4
11.3
1.1
0.9
Tata Steel
Neutral
383
-
37,183
121,374
121,856
7.2
8.4
18.6
34.3
20.6
11.2
1.3
1.2
6.1
10.1
0.9
0.9
Oil & Gas
Cairn India
Neutral
208
-
38,978
9,127
10,632
4.3
20.6
8.8
11.7
23.6
17.8
0.8
0.7
3.3
4.2
5.7
4.7
GAIL
Neutral
385
-
48,805
56,220
65,198
9.3
10.1
27.1
33.3
14.2
11.6
1.3
1.2
9.3
10.7
1.1
0.9
ONGC
Neutral
260
-
222,614
137,222
152,563
15.0
21.8
19.5
24.1
13.3
10.8
1.1
1.1
8.5
10.1
1.9
1.7
Indian Oil Corp
Neutral
604
-
146,576
373,359
428,656
5.9
5.5
54.0
59.3
11.2
10.2
1.7
1.6
16.0
15.6
0.5
0.5
Reliance Industries
Neutral
1,090
-
353,556
301,963
358,039
12.1
12.6
87.7
101.7
12.4
10.7
1.3
1.2
10.7
11.3
1.6
1.4
Pharmaceuticals
Alembic Pharma
Neutral
669
-
12,610
3,483
4,083
20.2
21.4
24.3
30.4
27.5
22.0
6.3
5.0
25.5
25.3
3.6
3.0
Aurobindo Pharma
Neutral
869
-
50,878
15,720
18,078
23.7
23.7
41.4
47.3
21.0
18.4
5.5
4.3
29.6
26.1
3.5
3.0
Aventis*
Neutral
4,229
-
9,739
2,357
2,692
17.3
17.3
153.5
169.2
27.6
25.0
4.7
3.8
25.8
28.4
3.8
3.1
Cadila Healthcare
Neutral
391
-
40,008
11,126
13,148
22.0
22.0
17.1
20.0
22.9
19.5
5.9
4.7
28.8
26.6
3.6
2.9
Cipla
Sell
589
490
47,302
15,378
18,089
17.4
18.4
21.6
27.2
27.3
21.6
3.5
3.1
13.7
15.2
3.3
2.7
Stock Watch
October 04, 2016
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
Pharmaceuticals
Dr Reddy's
Neutral
3,162
-
52,389
16,043
18,119
23.1
24.7
126.0
157.8
25.1
20.0
3.7
3.2
15.7
17.1
3.2
2.8
Dishman Pharma
Sell
256
45
4,129
1,718
1,890
22.7
22.8
9.5
11.3
26.9
22.6
2.6
2.4
10.1
10.9
2.9
2.5
GSK Pharma*
Neutral
2,813
-
23,829
3,528
3,811
16.6
18.8
51.8
59.4
54.3
47.4
14.5
14.5
26.3
30.6
6.5
6.1
Indoco Remedies
Sell
318
225
2,931
1,112
1,289
18.2
18.2
13.2
15.6
24.1
20.4
4.3
3.6
19.2
19.2
2.7
2.4
Ipca labs
Neutral
608
-
7,671
3,303
3,799
15.3
15.3
17.3
19.7
35.1
30.9
3.1
2.8
9.1
9.4
2.4
2.1
Lupin
Buy
1,494
1,809
67,367
15,912
18,644
26.4
26.7
58.1
69.3
25.7
21.6
5.0
4.1
21.4
20.9
4.3
3.5
Sun Pharma
Buy
758
944
182,367
31,129
35,258
30.0
30.9
28.0
32.8
27.1
23.1
4.2
3.5
18.7
18.9
5.4
4.6
Power
Tata Power
Neutral
76
-
20,677
36,916
39,557
17.4
27.1
5.1
6.3
15.0
12.1
1.3
1.2
9.0
10.3
1.6
1.4
NTPC
Neutral
151
-
124,094
86,605
95,545
17.5
20.8
11.8
13.4
12.8
11.2
1.3
1.2
10.5
11.1
2.8
2.8
Power Grid
Neutral
181
-
94,770
25,763
29,762
74.3
73.1
14.8
17.3
12.2
10.5
1.9
1.7
16.9
17.5
8.0
7.6
Real Estate
Prestige Estate
Neutral
203
-
7,599
4,707
5,105
25.2
26.0
10.3
13.0
19.7
15.6
1.6
1.5
10.3
10.2
2.8
2.5
MLIFE
Buy
439
522
1,802
1,152
1,300
22.7
24.6
29.9
35.8
14.7
12.3
1.1
1.0
7.6
8.6
2.3
1.9
Telecom
Bharti Airtel
Neutral
319
-
127,417
105,086
114,808
34.5
34.7
12.2
16.4
26.1
19.4
1.8
1.7
6.8
8.4
2.1
1.8
Idea Cellular
Neutral
81
-
29,167
40,133
43,731
37.2
37.1
6.4
6.5
12.7
12.5
1.1
1.0
8.2
7.6
1.7
1.5
zOthers
Abbott India
Neutral
4,764
-
10,124
3,153
3,583
14.1
14.4
152.2
182.7
31.3
26.1
153.7
131.3
25.6
26.1
2.9
2.5
Bajaj Electricals
Buy
256
306
2,582
5,099
5,805
5.6
5.9
11.4
14.6
22.5
17.5
3.0
2.7
13.4
15.1
0.5
0.4
Finolex Cables
Neutral
441
-
6,742
2,883
3,115
12.0
12.1
14.2
18.6
31.1
23.7
16.5
14.4
15.8
14.6
2.0
1.8
Goodyear India*
Neutral
738
-
1,701
1,598
1,704
10.4
10.2
49.4
52.6
14.9
14.0
68.9
60.5
18.2
17.0
0.8
104.6
Hitachi
Neutral
1,643
-
4,466
2,081
2,433
8.8
8.9
33.4
39.9
49.2
41.2
39.7
33.1
22.1
21.4
2.1
1.8
Jyothy Laboratories
Neutral
359
-
6,518
1,440
2,052
11.5
13.0
8.5
10.0
42.2
35.9
10.2
9.5
18.6
19.3
4.8
3.4
Page Industries
Neutral
15,453
-
17,236
2,450
3,124
20.1
17.6
299.0
310.0
51.7
49.9
344.2
262.7
47.1
87.5
7.1
5.6
Relaxo Footwears
Neutral
466
-
5,595
2,085
2,469
9.2
8.2
7.6
8.0
61.7
58.7
23.9
20.4
17.9
18.8
2.8
2.4
Siyaram Silk Mills
Accumulate
1,282
1,469
1,202
1,799
2,040
11.6
11.7
104.9
122.4
12.2
10.5
2.0
1.7
16.4
16.4
0.9
0.8
Styrolution ABS India*
Neutral
590
-
1,037
1,440
1,537
9.2
9.0
40.6
42.6
14.5
13.8
37.1
33.7
12.3
11.6
0.7
0.6
TVS Srichakra
Neutral
3,904
-
2,989
2,304
2,614
13.7
13.8
231.1
266.6
16.9
14.6
438.6
345.4
33.9
29.3
1.3
1.1
HSIL
Neutral
341
-
2,467
2,384
2,515
15.8
16.3
15.3
19.4
22.3
17.6
22.2
19.1
7.8
9.3
1.2
1.1
Kirloskar Engines India
Neutral
340
-
4,913
2,554
2,800
9.9
10.0
10.5
12.1
32.4
28.1
13.5
12.8
10.7
11.7
1.6
1.4
Ltd
M M Forgings
Neutral
426
-
514
546
608
20.4
20.7
41.3
48.7
10.3
8.7
58.3
51.6
16.6
17.0
0.8
0.7
Banco Products (India)
Neutral
215
-
1,539
1,353
1,471
12.3
12.4
14.5
16.3
14.8
13.2
20.5
18.5
14.5
14.6
1.1
115.8
Stock Watch
October 04, 2016
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
Competent Automobiles Neutral
196
-
120
1,137
1,256
3.1
2.7
28.0
23.6
7.0
8.3
37.6
34.0
14.3
11.5
0.1
0.1
Nilkamal
Neutral
1,319
-
1,968
1,995
2,165
10.7
10.4
69.8
80.6
18.9
16.4
75.4
65.5
16.6
16.5
1.0
0.9
Visaka Industries
Neutral
196
-
310
1,051
1,138
10.3
10.4
21.0
23.1
9.3
8.5
25.1
23.5
9.0
9.2
0.6
0.5
Transport Corporation of
Neutral
189
-
1,448
2,671
2,911
8.5
8.8
13.9
15.7
13.7
12.1
1.9
1.7
13.7
13.8
0.6
0.6
India
Elecon Engineering
Accumulate
60
63
652
1,482
1,660
13.7
14.5
3.9
5.8
15.4
10.3
3.6
3.3
7.8
10.9
0.8
0.7
Surya Roshni
Neutral
228
-
1,001
3,342
3,625
7.8
7.5
17.3
19.8
13.2
11.6
25.1
20.1
10.5
10.8
0.6
0.5
MT Educare
Neutral
147
-
585
366
417
17.7
18.2
9.4
10.8
15.7
13.6
3.5
3.0
22.2
22.3
1.5
1.3
Radico Khaitan
Neutral
122
-
1,619
1,659
1,802
13.0
13.2
6.3
7.4
19.2
16.5
1.7
1.5
8.6
9.3
1.4
1.3
Garware Wall Ropes
Neutral
515
-
1,127
873
938
12.9
13.1
30.9
34.9
16.7
14.8
2.6
2.3
15.7
15.2
1.2
1.1
Wonderla Holidays
Neutral
379
-
2,143
287
355
38.0
40.0
11.3
14.2
33.6
26.7
4.8
4.2
21.4
23.9
7.2
5.8
Linc Pen & Plastics
Neutral
273
-
404
382
420
9.3
9.5
13.5
15.7
20.3
17.4
3.5
3.0
17.1
17.3
1.1
1.0
The Byke Hospitality
Neutral
188
-
753
287
384
20.5
20.5
7.6
10.7
24.7
17.6
5.2
4.2
20.7
23.5
2.6
2.0
Interglobe Aviation
Neutral
945
-
34,048
21,122
26,005
14.5
27.6
110.7
132.1
8.5
7.2
51.1
36.5
168.5
201.1
1.6
1.2
Coffee Day Enterprises
Neutral
228
-
4,706
2,964
3,260
20.5
21.2
4.7
8.0
-
28.6
2.6
2.4
5.5
8.5
2.0
1.8
Ltd
Navneet Education
Neutral
101
-
2,410
1,062
1,147
24.0
24.0
6.1
6.6
16.6
15.3
3.4
3.0
20.6
19.8
2.3
2.2
Navkar Corporation
Buy
192
265
2,734
408
612
42.9
42.3
6.8
11.5
28.3
16.7
2.0
1.8
6.9
10.5
7.6
5.1
UFO Moviez
Neutral
470
-
1,298
619
685
33.2
33.4
30.0
34.9
15.7
13.5
2.2
1.9
13.8
13.9
1.8
1.5
VRL Logistics
Neutral
314
-
2,865
1,902
2,119
16.7
16.6
14.6
16.8
21.6
18.7
4.7
4.2
21.9
22.2
1.6
1.4
Team Lease Serv.
Neutral
1,095
-
1,872
3,229
4,001
1.5
1.8
22.8
32.8
48.1
33.3
5.2
4.5
10.7
13.4
0.5
0.4
S H Kelkar & Co.
Neutral
314
-
4,534
1,036
1,160
15.1
15.0
6.1
7.2
51.3
43.7
5.5
5.0
10.7
11.5
4.2
3.8
Quick Heal
Neutral
229
-
1,601
408
495
27.3
27.0
7.7
8.8
29.5
26.0
2.7
2.7
9.3
10.6
3.1
2.5
Narayana Hrudaya
Neutral
344
-
7,022
1,873
2,166
11.5
11.7
2.6
4.0
129.9
86.7
8.0
7.2
6.1
8.3
3.8
3.3
Manpasand Bever.
Neutral
763
-
3,819
836
1,087
19.6
19.4
16.9
23.8
45.2
32.0
5.4
4.7
12.0
14.8
4.3
3.2
Parag Milk Foods
Neutral
301
-
2,533
1,919
2,231
9.3
9.6
9.5
12.9
31.9
23.3
5.0
4.1
15.5
17.5
1.5
1.3
Mirza International
Buy
97
113
1,166
1,024
1,148
18.0
18.0
6.9
8.0
14.1
12.1
2.4
2.0
16.6
16.2
1.3
1.2
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 03, 2016
Market Outlook
October 04, 2016
Research Team Tel: 022 - 39357800
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