Market Outlook
October 05, 2017
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open in flat tracking global indices and SGX Nifty.
BSE Sensex
0.6
174
31,672
Nifty
0.6
55
9,915
U.S. Markets posted modest gains Wednesday, extending their recent streak of
advances that’s taken all major benchmarks to record levels. The major averages
Mid Cap
0.4
60
15,615
finished the session just above the unchanged line. The Dow edged up 20 points or
Small Cap
0.8
128
16,320
0.1% to 22,661.64, the Nasdaq crept up 2.9 points or less than a tenth of a % to
Bankex
0.2
45
27,127
6,534.63 and the S&P 500 inched up 3.2 points or 0.1% to 2,537.74.
Global Indices
Chg (%)
(Pts)
(Close)
The majority of the European markets ended Wednesday's session in the red.
Concerns over further political upheaval in Spain had investors in a negative mood.
Dow Jones
0.1
20
22,662
Shares of Spanish banks were particularly weak.
Nasdaq
0.1
03
6,534
FTSE
(0.0)
(1)
7,468
Indian Markets rose notably on Wednesday after the Reserve Bank of India (RBI) left
Nikkei
0.1
13
20,627
its key interest rates unchanged, as widely expected, but slashed the statutory
liquidity ratio (SLR) by 50 basis points to spur banks into lending more.
Hang Seng
0.7
206
28,379
Shanghai Com
0.3
9
3,349
News Analysis
RBI keeps key policy rate unchanged
Advances / Declines
BSE
NSE
Detailed analysis is on Pg2
Advances
1,468
896
Declines
1,191
801
Investor’s Ready Reckoner
Unchanged
128
88
Key Domestic & Global Indicator
Stock Watch: Latest investment recommendations on 150+ stocks
Volumes (` Cr)
Refer Pg7 onwards
BSE#
3,354
Top Picks
NSE
23,308
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
Blue Star
Capital Goods Accumulate
771
850
10.2
#Net Inflows (` Cr)
Net
Mtd
Ytd
Dewan Housing FinanceFinancials
Accumulate
554
610
10.1
FII
1,077
(10,759)
36,53
Asian Granito
Other
Buy
466
570
22.3
MFs
1,631
17,457
86,34
Navkar Corporation
Other
Buy
182
265
45.6
KEI Industries
Capital Goods
Accumulate
357
385
8.0
More Top Picks on Pg5
Top Gainer
Price (`)
Chg (%)
Natcopharm
954
20.0
Key Upcoming Events
Ipcalab
540
9.3
Previous
Consensus
Date
Region
Event Description
Reading
Expectations
Marksans
46
8.7
Oct05, 2017 US
Initial Jobless claims
272.00
265.00
Gnfc
343
5.6
Oct06, 2017 India
Imports YoY%
21.00
Advenzymes
264
5.1
Oct06, 2017 US
Change in Nonfarm payrolls
156.00
80.00
Oct10, 2017 US
Unnemployment rate
4.40
4.40
Oct10, 2017 India
Exports YoY%
10.30
Top Loser
Price (`)
Chg (%)
More Events on Pg7
Dishtv
71
(4.7)
Persistent
633
(4.0)
Videoind
16
(4.0)
Thermax
900
(3.7)
Sadbhav
290
(3.2)
#as on 04th Oct, 2017
Market Outlook
October 05, 2017
News Analysis
RBI keeps key policy rate unchanged
The RBI has left the key rates unchanged during its Fourth Bi-Monthly policy meet,
which was largely as expected. The RBI is of the view that there is an upside risk to
the inflation and accordingly it has revised its inflation forest for the 2HFY18 to
4.2-4.6% from a level of 4-4.5% earlier. Further it has revised down its GVA
forecast for the year to 6.7% from a level of 7.3%, which seems was on expected
line, given the disruption in the manufacturing sector due to the implementation of
GST.
However, it believes the issues with regards to GST to be resolved soon. The RBI
also remains cautious about the banks NPA issues as it believes the loan waiver
could result in further slippages in the industry. We believe due to higher risk of
inflation spiking up the RBI may continue to have a neutral stand as of now and
may see some relaxation in interest rates towards the end of the year.
Economic and Political News
GST Council may lower tax slab from 12% to 5% of government works
GDP growth dipped to 5.7% or below eight times during UPA regime, says PM
RBI cuts SLR by 0.5%; frees `57,000cr for lending
Corporate News
BHEL pays 79% dividend for 2016-17, highest in 3 years
SpiceJet to launch ops with up to 14-seater aircraft that can land anywhere
nfosys bags contract from KONE, to set up Helsinki design centre
Market Outlook
October 05, 2017
Top Picks
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
Strong growth in domestic business due to its leade`hip
in acute therapeutic segment. Alkem expects to launch
Alkem Laboratories
22,170
1,854
2,079
12.1
more products in USA, which bodes for its international
business.
We expect the company would report strong profitability
Asian Granito
1,402
466
570
22.3
owing to better product mix, higher B2C sales and
amalgamation synergy.
Favorable outlook for the AC industry to augur well for
Cooling products business which is out pacing the
Blue Star
7,384
771
850
10.2
market growth. EMPPAC division's profitability to
improve once operating environment turns around.
With a focus on the low and medium income (LMI)
consumer segment, the company has increased its
Dewan Housing Finance
17,366
554
610
10.1
presence in tier-II & III cities where the growth
opportunity is immense.
Loan growth is likely to pick up after a sluggish FY17.
Lower credit cost will help in strong bottom-line growth.
Karur Vysya Bank
8,702
144
180
25.0
Increasing share of CASA will help in NIM
improvement.
High order book execution in EPC segment, rising B2C
KEI Industries
2,773
357
385
8.0
sales and higher exports to boost the revenues and
profitability
Expected to benefit from the lower capex requirement
Music Broadcast
2,171
381
434
14.1
and 15 year long radio broadcast licensing.
Massive capacity expansion along with rail advantage
Navkar Corporation
2,595
182
265
45.6
at ICD as well CFS augur well for the company
Strong brands and distribution network would boost
Siyaram Silk Mills
2,133
2,276
2,500
9.9
growth going ahead. Stock currently trades at an
inexpensive valuation.
Market leaderhip in Hindi news genre and no.
2
viewe`hip ranking in English news genre, exit from the
TV Today Network
2,168
363
435
19.7
radio business, and anticipated growth in ad spends by
corporates to benefit the stock.
After GST, the company is expected to see higher
volumes along with improving product mix. The Gujarat
Maruti Suzuki
2,36,915
7,843
8,666
10.5
plant will also enable higher operating leverage which
will be margin accretive.
We expect loan book to grow at 24.3% over next two
GIC Housing
2,797
519
655
26.1
year; change in borrowing mix will help in NIM
improvement..
Source: Company, Angel Research
Market Outlook
October 05, 2017
Key Upcoming Events
Global economic events release calendar
Bloomberg Data
Date
Time
Country
Event Description
Unit
Period
Last Reported
Estimated
Oct 05, 2017
6:00 PMUS
Initial Jobless claims
Thousands
Sep 30
272.00
265.00
Oct 06, 2017
India
Imports YoY%
% Change
Sep
21.00
6:00 PMUS
Change in Nonfarm payrolls
Thousands
Sep
156.00
80.00
Oct 10, 2017
6:00 PMUS
Unnemployment rate
%
Sep
4.40
4.40
India
Exports YoY%
% Change
Sep
10.30
2:00 PMUK
Industrial Production (YoY)
% Change
Aug
0.40
Oct 12, 2017
US
Producer Price Index (mom)
% Change
Sep
0.50
5:30 PMIndia
Industrial Production YoY
% Change
Aug
1.20
Oct 13, 2017
6:00 PMUS
Consumer price index (mom)
% Change
Sep
0.40
0.60
China
Exports YoY%
% Change
Sep
5.60
10.30
Oct 16, 2017
12:00 PMIndia
Monthly Wholesale Prices YoY%
% Change
Sep
3.24
7:00 AMChina
Consumer Price Index (YoY)
% Change
Sep
1.80
1.60
Oct 17, 2017
2:30 PMEuro Zone
Euro-Zone CPI (YoY)
%
Sep F
1.50
2:00 PMUK
CPI (YoY)
% Change
Sep
2.90
6:45 PMUS
Industrial Production
%
Sep
(0.90)
(0.10)
Oct 18, 2017
6:00 PMUS
Housing Starts
Thousands
Sep
1,180.00
1,200.00
6:00 PMUS
Building permits
Thousands
Sep
1,272.00
1,260.00
2:00 PMUK
Jobless claims change
% Change
Sep
(2.80)
Oct 19, 2017
7:30 AMChina
Industrial Production (YoY)
% Change
Sep
6.00
7:30 AMChina
Real GDP (YoY)
% Change
3Q
6.90
Oct 20, 2017
7:30 PMUS
Existing home sales
Million
Sep
5.35
5.36
Oct 23, 2017
7:30 PMEuro Zone
Euro-Zone Consumer Confidence
Value
Oct A
(1.20)
Oct 24, 2017
0-Jan-00Germany
PMI Manufacturing
Value
Oct P
60.60
Oct 25, 2017
0-Jan-00US
New home sales
Thousands
Sep
560.00
Source: Bloomberg, Angel Research
Market Outlook
October 05, 2017
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
10.0
6.0
9.1
5.1
8.8
5.0
9.0
5.0
4.4
8.0
7.9
4.2
7.6
7.5
8.0
7.3
7.2
4.0
3.5
7.0
3.2
2.8
7.0
6.1
6.1
3.0
2.4
5.7
6.0
2.0
1.2
1.2
5.0
1.0
4.0
-
3.0
(1.0)
(0.2)
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
(%)
5.0
54.0
4.3
4.2
4.5
3.9
52.0
4.0
3.6
3.7
3.4
3.4
3.2
50.0
3.5
3.0
3.0
48.0
2.4
2.2
2.5
46.0
2.0
1.5
1.5
44.0
1.0
42.0
0.5
40.0
-
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Source: MOSPI, Angel Research
Exhibit 5: Exports and imports growth trends
Exhibit 6: Key policy rates
(%)
Exports yoy growth
Imports yoy growth
(%)
Repo rate
Reverse Repo rate
CRR
60.0
6.50
50.0
6.00
40.0
5.50
30.0
5.00
20.0
4.50
10.0
4.00
0.0
3.50
(10.0)
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
Market Outlook
October 05, 2017
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
6.9
7.0
5.8
6.0
5.3
5.0
5.0
1.1
3.7
4.0
2.5
3.0
2.2
1.7
1.7
2.0
1.4
0.8
1.0
0.3
-
Source: Bloomberg, Angel Research
Exhibit 2: 2017 GDP Growth projection by IMF (%, yoy) across select developing and developed countries
(%)
7.2
6.6
7.0
6.0
5.1
5.0
4.5
4.0
3.0
3.0
2.3
2.0
1.4
1.6
2.0
1.4
1.2
0.2
0.8
1.0
-
Source: IMF, Angel Research
Exhibit 3: 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, data as of 04th Oct-17
Stock Watch
October 05, 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Agri / Agri Chemical
Rallis
Neutral
210
-
4,084
1,873
2,099
15.0
15.0
9.5
10.5
22.1
20.0
3.4
3.0
15.8
16.0
2.1
1.9
United Phosphorus
Neutral
788
-
40,026
18,922
21,949
18.0
18.5
36.2
45.6
21.8
17.3
4.6
3.8
22.7
23.8
2.3
1.9
Auto & Auto Ancillary
Ashok Leyland
Accumulate
123
134
35,879
23,339
27,240
10.1
10.8
4.7
6.2
26.4
19.7
5.3
4.7
20.0
23.6
1.5
1.3
Bajaj Auto
Accumulate
3,170
3,350
91,722
23,936
27,955
19.5
20.1
142.7
167.3
22.2
18.9
4.8
4.3
21.8
22.8
3.4
2.9
Bharat Forge
Buy
629
875
29,265
7,637
8,755
21.7
23.2
36.1
47.3
17.4
13.3
3.1
2.7
18.5
20.8
3.7
3.1
Eicher Motors
Neutral
30,903
-
84,127
19,043
22,837
19.5
19.9
835.4
1,019.0
37.0
30.3
13.8
10.7
40.9
37.8
4.3
3.5
Gabriel India
Neutral
196
-
2,814
1,782
2,033
9.7
10.2
7.1
8.9
27.6
22.1
5.6
4.7
21.0
22.2
1.5
1.3
Hero Motocorp
Accumulate
3,794
4,226
75,765
32,239
36,878
16.0
15.6
184.4
206.5
20.6
18.4
6.5
5.7
31.3
30.7
2.1
1.8
Jamna Auto Industries Neutral
271
-
2,159
1,441
1,662
14.4
14.8
13.9
17.6
19.5
15.4
5.3
4.3
30.0
31.0
1.5
1.3
Mahindra and Mahindra Neutral
1,289
-
80,062
46,971
53,816
13.6
14.0
67.7
79.8
19.0
16.2
2.7
2.4
15.0
15.9
1.6
1.3
Maruti
Accumulate
7,843
8,666
236,915
81,825
101,245
15.0
15.0
283.5
356.0
27.7
22.0
6.0
4.9
21.9
22.4
2.6
2.0
Minda Industries
Neutral
859
-
7,419
4,328
5,084
11.0
11.9
27.3
36.4
31.5
23.6
6.7
5.2
23.1
25.6
1.8
1.5
Motherson Sumi
Neutral
336
-
70,639
55,937
64,445
10.8
11.4
16.9
21.1
19.9
15.9
4.4
4.5
25.2
25.4
1.3
1.1
Tata Motors
Neutral
423
-
122,250
303,167
343,649
11.8
13.8
33.1
54.7
12.8
7.7
2.1
1.7
16.9
23.0
0.5
0.4
TVS Motor
Neutral
654
-
31,061
13,992
16,216
9.0
9.4
17.1
20.3
38.4
32.2
10.2
7.9
29.7
27.7
2.2
1.8
Amara Raja Batteries
Buy
701
858
11,982
6,140
7,122
14.3
15.6
29.3
39.0
23.9
18.0
4.1
3.4
17.1
19.0
2.0
1.7
Exide Industries
Neutral
206
-
17,493
8,689
9,854
15.1
15.2
9.7
11.0
21.3
18.7
3.8
3.3
15.7
16.1
1.7
1.5
Apollo Tyres
Neutral
239
-
12,156
15,739
17,326
13.3
14.6
20.4
26.7
11.7
8.9
1.4
1.3
20.4
26.7
1.0
0.9
Ceat
Neutral
1,706
-
6,900
6,661
7,717
11.1
14.2
116.2
178.2
14.7
9.6
2.6
2.1
15.2
21.3
1.1
1.0
JK Tyres
Neutral
147
-
3,332
8,318
9,239
16.2
16.4
21.0
27.5
7.0
5.3
1.4
1.1
19.1
20.4
0.8
0.7
Swaraj Engines
Neutral
1,992
-
2,475
788
889
16.4
16.5
71.6
81.0
27.8
24.6
8.0
7.5
29.6
31.0
2.8
2.4
Subros
Neutral
239
-
1,435
1,855
2,135
11.6
11.8
10.3
14.7
23.3
16.3
3.6
3.0
15.8
19.1
1.0
0.8
Capital Goods
BEML
Neutral
1,670
-
6,953
4,286
5,194
7.1
8.2
42.9
58.1
38.9
28.7
3.2
2.9
7.6
8.7
1.7
1.4
Bharat Electronics
Neutral
165
-
40,418
10,258
12,470
19.6
19.5
7.3
8.6
22.5
19.1
0.4
0.4
20.4
21.9
3.4
2.8
Voltas
Neutral
520
-
17,198
6,778
8,004
9.6
11.0
17.1
22.4
30.4
23.2
7.3
6.4
17.7
19.8
2.2
1.9
BHEL
Neutral
83
-
30,583
33,200
39,167
6.8
9.5
6.2
11.2
13.4
7.4
0.6
0.6
4.6
8.0
0.5
0.4
Blue Star
Accumulate
771
850
7,384
5,220
6,207
6.3
6.6
16.8
22.3
45.9
34.6
9.1
8.1
19.9
23.3
1.4
1.1
CG Power and Industrial
Neutral
79
-
4,926
6,555
7,292
7.5
7.5
-
0.8
7,860.0
98.3
1.2
1.2
0.1
1.2
0.8
0.8
Solutions
Greaves Cotton
Neutral
135
-
3,291
1,778
1,993
14.7
15.1
8.1
9.1
16.6
14.8
3.7
3.5
21.8
23.6
1.6
1.4
Stock Watch
October 05, 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Capital Goods
KEC International
Accumulate
315
350
8,094
9,779
11,113
9.4
9.8
14.2
18.2
22.2
17.3
4.2
3.5
21.1
22.1
1.1
1.0
KEI Industries
Accumulate
357
385
2,773
3,001
3,391
10.0
10.0
13.0
16.1
27.4
22.1
5.0
4.1
18.2
18.7
1.1
1.0
Thermax
Neutral
909
-
10,826
4,125
4,747
10.3
10.8
26.7
31.5
34.0
28.8
3.8
3.5
11.2
12.0
2.4
2.0
VATech Wabag
Buy
589
681
3,217
3,867
4,126
9.6
10.0
34.9
39.8
16.9
14.8
2.8
2.4
17.7
17.5
0.8
0.8
Cement
ACC
Neutral
1,653
-
31,040
12,255
13,350
13.5
14.3
58.0
66.2
28.5
25.0
3.4
3.2
11.5
12.2
2.5
2.3
Ambuja Cements
Neutral
269
-
53,354
10,250
11,450
17.5
19.0
7.2
8.3
37.3
32.4
2.7
2.5
7.0
7.8
5.0
4.4
India Cements
Neutral
181
-
5,591
6,135
6,750
14.8
15.2
8.5
11.5
21.4
15.8
1.1
1.0
4.8
6.2
1.3
1.1
JK Cement
Neutral
980
-
6,852
4,150
4,775
19.2
20.0
49.0
63.5
20.0
15.4
3.2
2.7
17.0
18.5
2.1
1.8
J K Lakshmi Cement
Neutral
388
-
4,569
3,422
3,757
15.5
17.0
13.5
23.2
28.8
16.7
3.0
2.6
10.8
15.5
1.7
1.5
Orient Cement
Neutral
157
-
3,215
2,215
3,233
16.8
17.0
5.9
6.9
26.6
22.8
2.0
1.9
10.8
10.1
2.4
1.6
UltraTech Cement
Neutral
3,866
-
106,136
28,250
35,150
20.2
23.5
77.5
122.2
49.9
31.6
4.2
3.8
9.6
14.8
4.2
3.4
Construction
KNR Constructions
Neutral
206
-
2,893
1,846
2,203
14.5
14.5
12.1
13.7
17.0
15.1
0.9
0.8
17.5
16.7
1.6
1.3
Larsen & Toubro
Neutral
1,138
-
159,361
95,787
109,476
10.2
11.6
44.5
50.8
25.6
22.4
3.2
2.9
12.9
13.1
2.2
2.0
Gujarat Pipavav Port
Neutral
135
-
6,502
739
842
61.6
62.7
5.1
6.2
26.4
21.9
3.3
3.2
12.7
14.9
8.3
7.1
PNC Infratech
Neutral
141
-
3,621
2,040
2,935
13.0
13.0
6.4
9.0
22.1
15.7
0.6
0.5
9.7
12.2
1.8
1.3
Simplex Infra
Neutral
477
-
2,359
6,012
6,619
11.6
11.7
21.1
31.0
22.7
15.4
1.6
1.4
6.5
8.6
0.9
0.8
Sadbhav Engineering
Neutral
289
-
4,964
3,823
4,426
10.7
10.8
10.3
11.8
28.1
24.5
3.4
3.0
10.1
10.5
1.6
1.4
NBCC
Neutral
214
-
19,229
9,099
12,706
6.4
6.4
7.3
9.6
29.4
22.3
1.3
1.0
27.5
30.5
2.0
1.4
MEP Infra
Neutral
101
-
1,644
2,403
2,910
18.3
16.8
2.4
6.1
43.0
16.6
16.3
11.0
35.2
55.8
1.8
1.5
SIPL
Neutral
99
-
3,476
2,060
2,390
46.8
47.7
(5.8)
(3.1)
3.7
4.2
(14.2)
(2.3)
6.4
6.0
Engineers India
Neutral
151
-
10,149
1,795
2,611
21.1
22.4
5.9
8.1
25.5
18.6
1.8
1.8
12.9
16.1
4.0
2.6
Financials
Axis Bank
Accumulate
505
580
121,150
32,558
35,843
3.5
3.2
27.8
41.0
18.2
12.3
2.0
1.7
11.4
14.9
-
-
Bank of Baroda
Neutral
138
-
31,682
22,533
26,079
2.4
2.4
12.0
20.9
11.4
6.6
0.7
0.7
6.6
11.0
-
-
Canara Bank
Neutral
307
-
18,334
17,925
20,235
2.0
2.1
18.5
36.5
16.6
8.4
0.6
0.6
3.4
6.2
-
-
Can Fin Homes
Neutral
2,625
-
6,988
586
741
3.5
3.5
107.8
141.0
24.3
18.6
5.3
4.3
24.1
25.6
-
-
Cholamandalam Inv. &
Accumulate
1,099
1,230
17,183
2,826
3,307
6.3
6.3
53.7
64.6
20.5
17.0
3.5
3.0
18.3
18.9
-
-
Fin. Co.
Dewan Housing Finance Accumulate
554
610
17,366
2,676
3,383
2.4
2.7
37.4
49.7
14.8
11.2
1.9
1.7
13.8
16.2
-
-
Equitas Holdings
Buy
150
235
5,097
1,125
1,380
9.6
9.8
1.5
6.0
100.3
25.1
2.3
2.1
2.4
8.2
-
-
Federal Bank
Accumulate
113
125
22,080
4,896
5,930
2.8
3.1
5.4
7.6
21.1
15.0
1.8
1.7
8.5
11.0
-
-
Stock Watch
October 05, 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Financials
GIC Housing
Buy
519
655
2,797
376
477
3.6
3.7
33.0
40.0
15.7
13.0
2.8
2.4
20.0
23.0
-
-
HDFC Bank
Neutral
1,797
-
463,825
55,236
63,253
4.5
4.4
68.9
82.4
26.1
21.8
4.5
3.8
18.7
18.5
-
-
ICICI Bank
Accumulate
276
315
177,086
42,361
51,378
3.6
3.9
18.4
25.7
15.0
10.7
1.6
1.6
11.3
15.0
-
-
Karur Vysya Bank
Buy
144
180
8,702
3,289
3,630
3.7
3.9
10.8
14.1
13.3
10.2
1.6
1.4
12.5
14.7
-
-
LIC Housing Finance
Neutral
644
-
32,523
4,895
6,332
3.4
3.7
50.7
66.8
12.7
9.7
2.5
2.1
21.7
23.8
-
-
Punjab Natl.Bank
Neutral
130
-
27,706
23,708
25,758
2.1
2.1
5.9
16.4
22.2
7.9
0.7
0.6
3.0
8.3
-
-
RBL Bank
Neutral
510
-
21,066
2,309
2,888
2.6
2.5
16.4
19.1
31.2
26.7
3.9
3.5
13.3
13.8
-
-
Repco Home Finance
Buy
644
825
4,029
496
597
4.4
4.2
38.5
48.7
16.7
13.2
3.0
2.5
19.6
20.6
-
-
South Ind.Bank
Neutral
29
-
5,296
3,195
3,567
3.0
3.1
3.0
3.8
9.7
7.7
1.0
0.9
10.5
11.9
-
-
St Bk of India
Neutral
253
-
218,693
105,827
121,056
2.4
2.5
16.1
25.6
15.7
9.9
1.2
1.1
6.6
9.9
-
-
Union Bank
Neutral
126
-
9,157
14,650
16,225
2.3
2.3
23.1
32.5
5.5
3.9
0.4
0.4
7.1
9.2
-
-
Yes Bank
Neutral
356
-
81,540
11,088
13,138
3.0
2.9
84.0
99.3
4.2
3.6
0.7
0.6
16.3
16.8
-
-
FMCG
Akzo Nobel India
Neutral
1,905
-
9,138
3,164
3,607
13.8
13.7
58.6
67.9
32.5
28.0
8.0
7.0
24.5
25.1
2.7
2.4
Asian Paints
Neutral
1,155
-
110,749
17,603
20,615
18.6
18.6
2,128.9
2,543.3
0.5
0.5
11.4
9.6
28.0
28.9
6.1
5.1
Britannia
Neutral
4,338
-
52,080
9,690
11,278
14.8
15.4
84.0
101.0
51.6
43.0
18.8
15.0
40.6
39.0
5.3
4.6
Colgate
Neutral
1,078
-
29,325
4,420
5,074
24.9
25.3
28.6
32.8
37.7
32.9
14.9
12.0
43.8
40.5
6.4
5.5
Dabur India
Neutral
315
-
55,567
8,346
9,344
19.6
19.9
7.8
9.0
40.4
35.1
8.2
7.4
25.2
24.8
6.3
5.5
GlaxoSmith Con*
Neutral
5,020
-
21,112
5,072
5,760
18.2
18.4
176.3
199.2
28.5
25.2
6.0
5.5
21.2
21.7
3.5
3.0
Godrej Consumer
Neutral
970
-
66,079
10,171
11,682
20.8
21.5
21.7
27.1
44.7
35.8
10.1
8.6
22.3
23.4
6.6
5.7
HUL
Neutral
1,197
-
259,175
37,077
41,508
20.3
21.8
5,189.9
6,318.5
0.2
0.2
36.5
31.2
74.8
82.0
6.8
6.1
ITC
Neutral
267
-
325,641
44,588
49,853
37.0
37.3
9.6
11.0
27.9
24.3
6.8
6.5
25.1
27.3
6.8
6.0
Marico
Neutral
310
-
39,998
6,788
7,766
18.5
19.2
7.1
8.5
43.7
36.5
15.3
13.1
36.9
38.0
5.7
5.0
Nestle*
Neutral
7,326
-
70,630
10,083
11,182
20.0
20.9
119.7
141.3
61.2
51.8
215.7
197.1
36.7
39.8
6.7
6.0
Tata Global
Neutral
205
-
12,935
7,121
7,641
11.9
12.3
6.9
8.0
29.7
25.6
2.0
1.9
6.8
7.2
1.6
1.5
Procter & Gamble
Neutral
8,494
-
27,572
3,034
3,579
27.1
27.7
167.7
198.8
50.7
42.7
13.6
11.7
28.8
29.5
8.5
7.1
Hygiene
IT
HCL Tech^
Accumulate
886
1,014
126,431
52,342
57,053
20.9
20.9
62.8
67.6
14.1
13.1
3.2
2.7
22.4
20.6
2.1
1.8
Infosys
Buy
900
1,179
206,681
73,963
80,619
26.0
26.0
64.4
69.3
14.0
13.0
2.8
2.5
19.7
19.6
2.2
2.0
TCS
Accumulate
2,443
2,651
481,287
127,403
138,870
27.6
27.6
144.5
156.0
16.9
15.7
5.0
4.7
29.7
29.8
3.4
3.1
Tech Mahindra
Accumulate
464
533
45,287
31,015
33,496
15.0
15.0
35.6
38.1
13.0
12.2
2.2
2.1
17.0
16.3
1.2
1.1
Stock Watch
October 05, 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
IT
Wipro
Neutral
283
-
137,776
58,536
61,858
20.3
20.3
18.2
19.1
15.6
14.8
2.4
2.1
14.6
13.4
2.3
2.2
Media
D B Corp
Neutral
382
-
7,032
2,404
2,625
30.5
31.5
23.7
26.9
16.1
14.2
3.8
3.2
23.5
22.8
2.8
2.5
HT Media
Neutral
97
-
2,252
2,589
2,830
15.1
15.4
8.3
10.9
11.7
8.9
0.9
0.9
8.4
10.4
0.4
0.3
Jagran Prakashan
Buy
179
225
5,855
2,541
2,835
28.5
28.7
12.7
14.1
14.1
12.7
2.9
2.5
21.3
21.4
2.2
1.9
Sun TV Network
Neutral
768
-
30,248
3,238
3,789
51.9
55.1
30.9
38.0
24.8
20.2
7.1
6.2
30.0
31.0
8.9
7.5
Hindustan Media
Neutral
250
-
1,835
1,002
1,074
23.3
23.5
29.2
33.8
8.6
7.4
1.3
1.1
15.6
15.4
0.8
0.6
Ventures
TV Today Network
Buy
363
435
2,168
667
727
27.7
27.7
18.6
20.1
19.5
18.1
3.0
3.1
15.6
17.3
2.8
2.6
Music Broadcast Limited Accumulate
381
434
2,171
271
317
91.0
109.0
6.0
10.0
63.4
38.1
4.0
3.6
6.5
9.3
7.6
6.3
Metals & Mining
Coal India
Neutral
270
-
167,600
82,301
91,235
17.0
18.0
17.1
20.5
15.8
13.2
3.0
2.8
45.0
55.0
1.7
1.5
Hind. Zinc
Neutral
312
-
131,745
22,108
24,555
57.0
58.0
22.1
26.3
14.1
11.9
4.6
3.7
32.0
35.0
5.0
4.1
Hindalco
Neutral
242
-
54,183
102,350
105,355
13.5
14.5
21.5
24.5
11.2
9.9
1.6
1.3
15.0
15.2
1.1
1.1
JSW Steel
Neutral
247
-
59,802
64,500
68,245
21.1
21.5
20.1
21.2
12.3
11.7
2.3
1.9
-
-
1.6
1.6
NMDC
Neutral
119
-
37,793
10,209
11,450
47.0
48.0
11.1
12.1
10.8
9.9
1.5
1.4
-
-
3.2
2.9
SAIL
Neutral
54
-
22,220
54,100
63,555
3.0
10.0
(10.0)
1.5
35.9
0.7
0.7
-
-
1.4
1.2
Vedanta
Neutral
319
-
118,616
81,206
87,345
28.0
29.0
26.5
33.5
12.0
9.5
2.7
2.4
-
-
2.2
1.9
Tata Steel
Neutral
659
-
63,974
121,445
126,500
16.2
17.2
65.4
81.3
10.1
8.1
1.6
1.4
-
-
1.0
0.9
Oil & Gas
GAIL
Neutral
436
-
73,800
53,115
52,344
14.2
15.3
30.0
31.1
14.5
14.0
1.8
1.7
-
-
1.1
1.1
ONGC
Neutral
172
-
220,732
83,111
84,934
44.2
44.9
16.4
16.9
10.5
10.2
1.3
1.2
-
-
2.5
2.5
Indian Oil Corp
Neutral
409
-
198,485
396,116
432,560
8.5
8.8
40.1
42.2
10.2
9.7
1.8
1.6
-
-
0.6
0.6
Reliance Industries
Neutral
819
-
532,791
257,711
267,438
17.0
18.2
89.1
89.5
9.2
9.2
0.9
0.8
-
-
1.7
1.6
Pharmaceuticals
Alembic Pharma
Buy
500
600
9,430
3,903
4,584
18.2
19.2
21.8
27.2
22.9
18.4
4.2
3.5
19.8
20.6
2.4
2.1
Alkem Laboratories Ltd
Accumulate
1,854
2,079
22,170
6,320
7,341
17.5
19.8
72.7
96.6
25.5
19.2
4.5
3.8
16.7
18.7
3.4
2.9
Aurobindo Pharma
Accumulate
724
823
42,415
17,086
19,478
22.1
22.0
44.7
51.4
16.2
14.1
3.6
2.9
24.7
22.7
2.6
2.3
Aventis*
Neutral
4,091
-
9,422
2,508
2,862
16.8
16.8
139.9
153.8
29.2
26.6
4.2
3.4
23.5
25.8
3.4
2.8
Cadila Healthcare
Reduce
493
426
50,450
11,584
13,228
20.3
20.4
18.7
21.3
26.4
23.1
5.9
4.8
24.6
22.9
4.2
3.6
Cipla
Sell
582
458
46,805
16,619
19,437
15.4
16.2
19.7
24.3
29.5
23.9
3.4
3.0
12.0
13.2
3.0
2.5
Dr Reddy's
Neutral
2,384
-
39,519
15,844
17,973
17.6
18.2
91.7
111.0
26.0
21.5
3.0
2.7
11.9
13.0
2.7
2.4
GSK Pharma*
Neutral
2,448
-
20,737
3,260
3,651
15.0
18.0
46.1
58.6
53.1
41.8
10.9
11.3
20.0
26.5
6.3
5.7
Indoco Remedies
Sell
211
153
1,948
1,154
1,310
14.9
14.9
11.3
12.7
18.7
16.6
2.7
2.4
15.0
15.0
1.8
1.5
Stock Watch
October 05, 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Pharmaceuticals
Ipca labs
Neutral
540
-
6,808
3,593
4,022
14.5
15.5
19.4
25.2
27.8
21.4
2.5
2.3
9.5
11.2
2.0
1.7
Lupin
Buy
1,027
1,467
46,404
18,657
21,289
21.3
23.3
52.8
66.7
19.5
15.4
2.9
2.5
16.3
17.5
2.5
2.1
Natco Pharma
Neutral
954
-
16,635
1,836
1,946
31.8
28.9
22.1
20.6
43.2
46.3
8.7
7.7
20.1
16.7
8.9
8.4
Sun Pharma
Accumulate
518
558
124,233
32,899
36,451
26.9
25.4
31.6
32.3
16.4
16.0
2.9
2.5
18.7
18.8
3.4
2.9
Syngene International
Accumulate
487
557
9,735
1,402
1,823
32.8
36.0
15.9
20.7
30.7
23.6
5.7
4.7
18.7
20.0
6.9
5.3
Power
Tata Power
Neutral
78
-
21,097
32,547
33,806
20.5
20.5
4.7
5.4
16.6
14.6
1.6
1.4
10.5
10.5
1.6
1.6
NTPC
Neutral
168
-
138,359
86,070
101,246
28.3
30.7
12.9
16.2
13.0
10.4
1.3
1.2
10.6
12.4
3.0
2.7
Power Grid
Accumulate
209
223
109,340
29,183
32,946
89.7
90.0
18.0
20.8
11.6
10.1
1.9
1.7
17.7
18.2
7.7
7.1
Real Estate
Prestige Estate
Neutral
277
-
10,371
4,607
5,146
21.0
22.2
7.9
9.8
35.0
28.2
2.2
2.0
10.3
12.0
3.4
3.1
MLIFE
Accumulate
472
522
2,422
487
590
12.3
17.8
21.0
31.2
22.5
15.1
1.2
1.1
5.2
7.4
3.7
3.0
Telecom
Bharti Airtel
Neutral
377
-
150,682
97,903
105,233
36.0
36.3
9.3
11.1
40.5
34.1
2.0
1.9
5.0
5.6
2.5
2.2
Idea Cellular
Neutral
74
-
26,781
35,012
37,689
27.1
27.7
(4.4)
(2.7)
1.2
1.2
(6.8)
(4.6)
2.1
1.9
zOthers
Abbott India
Neutral
4,188
-
8,899
3,244
3,723
14.9
16.1
167.5
209.4
25.0
20.0
5.5
4.6
23.7
24.8
2.4
2.0
Asian Granito
Buy
466
570
1,402
1,169
1,286
12.5
12.5
16.0
19.7
29.2
23.6
3.1
2.8
10.7
11.6
1.4
1.3
Bajaj Electricals
Accumulate
359
395
3,646
4,646
5,301
6.7
7.6
16.1
22.3
22.3
16.1
3.6
3.1
16.4
19.2
0.8
0.7
Banco Products (India)
Neutral
209
-
1,494
1,530
1,695
13.2
12.7
19.0
20.0
11.0
10.5
1.8
1.6
0.2
0.2
0.9
98.3
Coffee Day Enterprises
Neutral
210
-
4,326
3,494
3,913
17.4
18.0
4.8
5.7
-
36.9
1.9
1.8
-
0.1
1.7
1.5
Ltd
Elecon Engineering
Neutral
63
-
708
171
201
15.0
16.2
36.0
43.0
1.8
1.5
0.2
0.1
0.1
0.1
3.5
3.0
Garware Wall Ropes
Neutral
914
-
1,999
928
1,003
15.2
15.2
39.4
43.2
23.2
21.2
3.8
3.3
16.5
15.4
2.0
1.8
Goodyear India*
Neutral
802
-
1,849
1,717
1,866
11.8
12.3
47.9
49.8
16.7
16.1
2.6
2.2
15.6
15.7
0.8
110.5
Hitachi
Neutral
1,992
-
5,416
2,355
2,715
10.3
10.8
49.0
60.9
40.7
32.7
9.5
7.5
0.2
0.2
2.3
2.0
HSIL
Neutral
391
-
2,824
2,240
2,670
14.6
15.0
17.0
22.0
23.0
17.8
1.9
1.8
0.1
0.1
1.5
1.2
Interglobe Aviation
Neutral
1,095
-
39,619
22,570
27,955
14.2
15.0
63.6
81.8
17.2
13.4
9.1
7.7
0.5
0.6
1.4
1.1
Jyothy Laboratories
Neutral
396
-
7,193
1,781
2,044
14.1
15.0
9.4
10.5
42.3
37.7
9.0
8.5
0.2
0.2
4.3
3.6
Linc Pen & Plastics
Neutral
231
-
342
420
462
9.3
9.3
15.3
17.1
15.1
13.5
2.6
2.6
16.9
19.5
0.9
0.8
M M Forgings
Neutral
651
-
785
542
642
20.1
21.0
41.6
56.8
15.6
11.5
2.2
1.8
0.1
0.2
1.9
1.6
Mirza International
Neutral
158
-
1,904
1,148
1,285
18.0
18.0
8.0
9.4
19.7
16.9
3.3
2.8
16.3
16.1
1.8
1.6
Navkar Corporation
Buy
182
265
2,595
561
617
41.5
41.5
11.5
12.7
15.8
14.3
1.7
1.5
10.5
10.4
5.3
4.6
Nilkamal
Neutral
1,590
-
2,372
2,317
2,525
11.4
11.1
96.0
105.0
16.6
15.1
2.8
2.5
0.2
0.2
1.0
0.9
Stock Watch
October 05, 2017
Company Name
Reco
CMP
Target Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E
zOthers
Parag Milk Foods
Neutral
256
-
2,157
1,987
2,379
7.6
9.0
12.4
18.3
20.7
14.0
2.9
2.6
8.2
13.2
1.2
1.0
Radico Khaitan
Neutral
175
-
2,324
1,811
1,992
13.2
13.2
8.1
8.8
21.6
19.8
2.2
2.4
10.1
12.0
1.6
1.5
Relaxo Footwears
Neutral
523
-
6,286
1,981
2,310
13.7
14.5
12.0
15.5
43.6
33.8
8.5
6.9
0.2
0.2
3.2
2.8
Siyaram Silk Mills
Accumulate
2,276
2,500
2,133
1,769
1,981
12.7
12.7
113.1
131.1
20.1
17.4
3.1
2.7
15.5
15.5
1.4
1.2
Styrolution ABS India* Neutral
947
-
1,666
1,800
1,980
8.0
8.1
42.0
46.2
22.6
20.5
2.5
2.3
0.1
0.1
1.0
1.0
Surya Roshni
Neutral
297
-
1,303
4,870
5,320
7.7
7.8
22.8
28.1
13.1
10.6
1.7
1.5
0.1
0.1
0.5
0.4
TVS Srichakra
Neutral
3,027
-
2,318
2,729
2,893
12.7
12.5
248.5
265.0
12.2
11.4
3.5
2.8
0.3
0.3
0.9
0.8
Visaka Industries
Neutral
625
-
992
1,104
1,214
12.1
12.6
31.0
37.9
20.2
16.5
2.5
2.2
0.1
0.1
1.1
1.0
VIP Industries
Buy
256
300
3,615
1,450
1,693
10.4
10.5
6.5
7.8
39.1
32.8
8.3
7.2
21.1
22.1
2.5
2.1
Navin Fluorine
Accumulate
695
730
3,426
945
1,154
22.4
22.6
28.7
34.8
24.2
20.0
4.0
3.4
-
-
3.1
2.5
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 04, 2017
Market Outlook
October 05, 2017
Research Team Tel: 022 - 39357800
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