Market Outlook
November 06, 2017
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open negative tracking global indices and SGX Nifty.
BSE Sensex
0.3
112
33,686
Nifty
0.3
29
10,453
The US stocks rose on Friday, inching to new record highs. The modest strength on
Wall Street came following the ISM report which said that its non-manufacturing
Mid Cap
(0.1)
(12)
16,713
index inched up to 60.1 in October from 59.8 in September, reaching its highest
Small Cap
0.5
87
17,856
level since the index's debut in 2008. The Dow Jones Industrial Average was up
Bankex
1.0
289
29,092
0.1% at 23,539 while the S&P 500 rose 0.3% to 2,588 and the tech-heavy Nasdaq
Composite rose 0.7% to 6,764, marking its sixth consecutive weekly gain.
Global Indices
Chg (%)
(Pts)
(Close)
The FTSE-100 closed at a fresh record high on Friday, despite the Bank of England’s
Dow Jones
0.1
23
23,539
decision earlier this week to raise interest rates for the first time in over a decade.
Nasdaq
0.7
49
6,764
The FTSE index finished the trading session up 0.1 per cent at 7,560, beating the
FTSE
0.1
5
7,560
previous record close of 7,556 set on 12 October. The FTSE 100 has increased by
Nikkei
0.5
119
22,539
around 20 per cent since the June 2016 Brexit referendum, although it has been
Hang Seng
0.3
85
28,604
supported by a slump in the pound in the wake of the vote.
Shanghai Com
(0.3)
(12)
3,372
Benchmarks Sensex and Nifty crossed new milestones on Friday, riding on positive
services industry activity data and more capital inflows. The services sector activity in
Advances / Declines
BSE
NSE
India expanded for the second consecutive month in October, driven up by rising
Advances
1,427
910
new orders, the fastest pace since June, amid positive demand conditions, as per
monthly PMI survey numbers. The 30 share BSE index closed at 33,686, up 0.3%.
Declines
1,346
821
The 50 share Nifty index settled up 0.3%, at 10,453, a new peak.
Unchanged
138
71
News Analysis
Volumes (` Cr)
Hindalco reports 10% drop in net profit on exceptional expense
BSE
15,286
Detailed analysis on Pg2
NSE
34,161
Investor’s Ready Reckoner
Net Inflows (` Cr)
Net
Mtd
Ytd
Key Domestic & Global Indicators
FII
1,043
1,043
39,495
Stock Watch: Latest investment recommendations on 150+ stocks
Refer Pg5 onwards
MFs
(138)
(138)
95,272
Top Picks
Top Gainers
Price (`)
Chg (%)
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
Hathway
38
19.9
Blue Star
Capital Goods
Buy
692
867
25.3
Den
92
10.3
Dewan Housing Finance
Financials
Accumulate
666
712
7.0
Sail
87
8.6
Asian Granito
Other
Buy
495
570
15.2
Arvind
441
8.6
Navkar Corporation
Other
Buy
195
265
36.0
Ujjivan
373
8.5
KEI Industries
Capital Goods Accumulate
338
380
12.4
More Top Picks on Pg4
Top Losers
Price (`)
Chg (%)
Key Upcoming Events
Previous
Consensus
Natcopharm
955
(4.2)
Date
Region
Event Description
Reading
Expectations
Hcc
38
(4.2)
Nov06
China
Exports YoY%
8.10
7.00
Glenmark
627
(3.4)
Nov08
Germany PMI Services
55.20
55.20
Shriramcit
2,247
(3.3)
Nov09
US
Initial Jobless claims
229.00
Nov09
India
Industrial Production YoY
4.30
Edelweiss
292
(3.2)
As on November, 03 2017
Nov09
China
Consumer Price Index (YoY)
1.60
1.70
More Events on Pg7
Market Outlook
November 06, 2017
News Analysis
Hindalco reports 10% drop in net profit on exceptional expense
Hindalco Industries’ stand-alone 2QFY18 PAT declined
10.6% YoY to
`392.9cr due to higher raw material costs and an exceptional expense of
`105.5cr due to provisions made in view of two Supreme Court verdicts.
Hindalco’s revenue rose 7.8% to `10,308.2cr during the quarter, below the
consensus estimate of `10,716.3cr. Adjusted for the exceptional expense, PAT
was largely in line with consensus estimate of Rs495.4cr. EBITDA, rose 20.1%
from a year ago to `1,389.8cr as EBITDA margin expanded by 138 basis
points to 13.48%.
Cost of production rose 3% sequentially and 7% on yoy basis due to a rise in
raw material and other input costs. The average price of aluminium at the LME
was up
24% from a year earlier at
$2,011/tonne and led to higher
realizations. Hence exports were higher during the quarter as domestic
demand remained subdued due to the monsoon season. Company expects
prices to remain firm as production continues to slow in China.
The domestic demand was subdued during the first half of the current fiscal
but was likely to rise sharply in the second half with issues such as goods and
services tax implementation settling down. The company’s Atlanta-based fully
owned subsidiary Novelis Inc. reported a net profit of $307 million for the
September quarter from a net loss of $89 million in the year-ago period as
revenue jumped 18.3% to $2.8 billion.
Economic and Political News
Govt India to be high middle income economy by 2047: World Bank CEO
GST council to consider slashing tax rates on common use goods
Digital transactions shoot up post demonetisation
Corporate News
Hindalco sees 10% drop in net profit on exceptional expense
CCI clears GIC’s `9,000cr deal with DLF’s rental arm
Tata Power’s renewable portfolio profit up at `173cr in Q2
FPIs turn net buyers in October, invest over `3,000cr in equities
Market Outlook
November 06, 2017
Quarterly Bloomberg Brokers Consensus Estimate
Rural Electrification Corporation Ltd - Nov 06, 2017
Particulars ( ` cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY18 q-o-q (%)
Sales
3,320
5,956
(44.3)
5,571
(40.4)
EBIDTA
2,324
5,722
(59.4)
5,142
(54.8)
%
70
96.1
92.3
PAT
1,502
1,751
(14.2)
1,301
15.5
Cipla Ltd - Nov 07, 2017
Particulars ( ` cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY18 q-o-q (%)
Sales
4,014
3,751
7.1
3,525
13.9
EBIDTA
755
680
11.1
646
16.9
%
18.9
18.1
18.4
PAT
422
354
19.3
408
3.4
Market Outlook
November 06, 2017
Top Picks HHHHH
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
23,028
1,926
2,079
7.9
more products in USA, which bodes for its international
business.
We expect the company would report strong profitability
Asian Granito
1,488
495
570
15.2
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
6,626
692
867
25.3
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
20,871
666
712
7.0
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
7,699
127
180
41.3
Increasing share of CASA will help in NIM
improvement.
High order book execution in EPC segment, rising B2C
KEI Industries
2,629
338
380
12.4
sales and higher exports to boost the revenues and
profitability
Expected to benefit from the lower capex requirement
Music Broadcast
2,206
387
434
12.2
and 15 year long radio broadcast licensing.
Massive capacity expansion along with rail advantage
Navkar Corporation
2,778
195
265
36.0
at ICD as well CFS augur well for the company
Strong brands and distribution network would boost
Siyaram Silk Mills
2,845
607
650
7.1
growth 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
TV Today Network
2,263
379
435
14.7
radio business, and anticipated growth in ad spends by
corporate to benefit the stock.
After GST, the company is expected to see higher
volumes along with improving product mix. The Gujarat
Maruti Suzuki
2,48,201
8,216
8,658
5.4
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
2,588
481
655
36.3
year; change in borrowing mix will help in NIM
improvement..
Source: Company, Angel Research
Market Outlook
November 06, 2017
Key Upcoming Events
Result Calendar
Date
Company
November 06, 2017
KEC International, Rural Elec.Corp., Indian Bank, GIPCL, Narayana Hrudaya
November 07, 2017
BHEL, IOB, GlaxoSmith Con, Finolex Cables, Jyothy Laboratories, Cipla, Alembic Pharma, Indoco Remedies
Source: Bloomberg, Angel Research
Global economic events release calendar
Bloomberg Data
Date
Time
Country
Event Description
Unit
Period
Last Reported
Estimated
Nov 06, 2017
China
Exports YoY%
% Change
Oct
8.10
7.00
Nov 08, 2017
2:25 PMGermany PMI Services
Value
Oct F
55.20
55.20
Nov 09, 2017
7:00 PMUS
Initial Jobless claims
Thousands
Nov 4
229.00
5:30 PMIndia
Industrial Production YoY
% Change
Sep
4.30
7:00 AMChina
Consumer Price Index (YoY)
% Change
Oct
1.60
1.70
Nov 10, 2017
3:00 PMUK
Industrial Production (YoY)
% Change
Sep
1.60
1.80
Nov 13, 2017
India
Imports YoY%
% Change
Oct
18.09
India
Exports YoY%
% Change
Oct
25.67
Nov 14, 2017
3:30 PMEuro Zone Euro-Zone GDP s.a. (QoQ)
% Change
3Q P
0.60
7:30 AMChina
Industrial Production (YoY)
% Change
Oct
6.60
6.30
3:00 PMUK
CPI (YoY)
% Change
Oct
3.00
12:00 PMIndia
Monthly Wholesale Prices YoY%
% Change
Oct
2.60
US
Producer Price Index (mom)
% Change
Oct
0.80
12:30 PMGermany GDP nsa (YoY)
% Change
3Q P
0.80
Nov 15, 2017
3:00 PMUK
Jobless claims change
% Change
Oct
1.70
Source: Bloomberg, Angel Research
Market Outlook
November 06, 2017
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
10.0
6.0
9.1
5.1
8.8
9.0
5.0
4.4
4.3
8.0
7.9
4.2
7.6
7.5
8.0
7.3
7.2
4.0
3.5
7.0
3.2
2.9
7.0
6.1
6.1
3.0
2.4
5.7
6.0
2.0
1.2
0.9
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
(%)
4.5
4.2
54.0
3.9
4.0
3.6
3.7
52.0
3.4
3.3
3.3
3.5
3.2
3.0
50.0
3.0
2.2
2.4
48.0
2.5
2.0
46.0
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
5.50
40.0
5.00
30.0
4.50
20.0
4.00
10.0
3.50
0.0
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
Market Outlook
November 06, 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
1.8
2.0
1.5
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
(%)
6.7
6.8
7.0
6.0
5.4
5.2
5.0
3.7
4.0
3.0
1.8
2.2
2.0
1.7
1.6
2.0
0.7
1.5
0.7
1.0
-
Source: IMF, Angel Research
Exhibit 3: One year forward P-E ratio across select developing and developed countries
(x)
25.0
20.0
15.0
10.0
5.0
-
Source: IMF, Angel Research
Market Outlook
November 06, 2017
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
73,915
(0.6)
11.0
14.8
Russia
Micex
2,081
0.4
5.9
6.0
India
Nifty
10,453
6.0
3.3
21.2
China
Shanghai Composite
3,372
0.8
3.0
8.2
South Africa
Top 40
53,199
5.2
7.9
19.6
Mexico
Mexbol
48,535
(4.3)
(5.8)
3.5
Indonesia
LQ45
1,006
1.4
3.4
8.0
Malaysia
KLCI
1,741
(1.1)
(1.1)
4.0
Thailand
SET 50
1,079
0.9
7.6
14.9
USA
Dow Jones
23,539
3.9
6.8
31.2
UK
FTSE
7,560
1.2
0.6
11.1
Japan
Nikkei
22,539
10.5
12.8
30.0
Germany
DAX
13,479
4.5
10.9
28.6
France
CAC
5,518
2.8
5.9
22.9
Source: Bloomberg, Angel Research p68in4
Stock Watch
November 06, 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Agri / Agri Chemical
Rallis
Reduce
240
209
4,666
1,873
2,099
15.0
15.0
9.5
10.5
25.3
22.9
3.8
3.5
15.8
16.0
2.4
2.2
United Phosphorus
Accumulate
777
820
39,449
18,922
21,949
18.0
18.5
36.2
45.6
21.5
17.0
4.5
3.7
22.7
23.8
2.2
1.9
Auto & Auto Ancillary
Ashok Leyland
Neutral
124
-
36,187
23,339
27,240
10.1
10.8
4.7
6.2
26.6
19.9
5.3
4.7
20.0
23.6
1.5
1.3
Bajaj Auto
Neutral
3,223
-
93,266
23,936
27,955
19.5
20.1
142.7
167.3
22.6
19.3
4.9
4.4
21.8
22.8
3.5
2.9
Bharat Forge
Buy
706
875
32,850
7,637
8,755
21.7
23.2
36.1
47.3
19.6
14.9
3.5
3.0
18.5
20.8
4.2
3.5
Eicher Motors
Neutral
31,235
-
85,030
19,043
22,837
19.5
19.9
835.4
1,019.0
37.4
30.7
14.0
10.8
40.9
37.8
4.3
3.6
Gabriel India
Neutral
199
-
2,855
1,782
2,033
9.7
10.2
7.1
8.9
28.0
22.5
5.7
4.8
21.0
22.2
1.6
1.3
Hero Motocorp
Accumulate
3,691
4,129
73,704
32,239
36,878
16.0
15.6
184.4
206.5
20.0
17.9
6.3
5.5
31.3
30.7
2.1
1.8
Jamna Auto Industries Neutral
66
-
2,622
1,441
1,662
14.4
14.8
13.9
17.6
4.7
3.7
1.3
1.1
30.0
31.0
1.8
1.5
Mahindra and Mahindra Neutral
1,331
-
82,677
46,971
53,816
13.6
14.0
67.7
79.8
19.7
16.7
2.8
2.5
15.0
15.9
1.6
1.4
Maruti
Accumulate
8,216
8,658
248,201
81,825
101,245
15.0
15.0
283.5
356.0
29.0
23.1
6.3
5.2
21.9
22.4
2.7
2.1
Minda Industries
Neutral
910
-
7,867
4,328
5,084
11.0
11.9
27.3
36.4
33.4
25.0
7.1
5.5
23.1
25.6
1.9
1.6
Motherson Sumi
Neutral
365
-
76,786
55,937
64,445
10.8
11.4
16.9
21.1
21.6
17.3
4.8
4.9
25.2
25.4
1.4
1.2
Tata Motors
Neutral
447
-
129,036
303,167
343,649
11.8
13.8
33.1
54.7
13.5
8.2
2.2
1.8
16.9
23.0
0.5
0.4
TVS Motor
Neutral
695
-
33,014
13,992
16,216
9.0
9.4
17.1
20.3
40.8
34.2
10.8
8.4
29.7
27.7
2.3
1.9
Amara Raja Batteries
Buy
691
858
11,801
6,140
7,122
14.3
15.6
29.3
39.0
23.6
17.7
4.0
3.4
17.1
19.0
1.9
1.6
Exide Industries
Neutral
205
-
17,421
8,689
9,854
15.1
15.2
9.7
11.0
21.2
18.6
3.8
3.3
15.7
16.1
1.7
1.5
Apollo Tyres
Neutral
236
-
12,031
15,739
17,326
13.3
14.6
20.4
26.7
11.6
8.9
1.4
1.2
20.4
26.7
1.0
0.9
Ceat
Neutral
1,695
-
6,856
6,661
7,717
11.1
14.2
116.2
178.2
14.6
9.5
2.5
2.1
15.2
21.3
1.1
1.0
JK Tyres
Neutral
145
-
3,299
8,318
9,239
16.2
16.4
21.0
27.5
6.9
5.3
1.4
1.1
19.1
20.4
0.8
0.7
Swaraj Engines
Neutral
1,964
-
2,439
788
889
16.4
16.5
71.6
81.0
27.4
24.3
7.9
7.3
29.6
31.0
2.8
2.4
Subros
Neutral
252
-
1,513
1,855
2,135
11.6
11.8
10.3
14.7
24.6
17.2
3.7
3.2
15.8
19.1
1.0
0.9
Capital Goods
BEML
Neutral
1,740
-
7,246
4,286
5,194
7.1
8.2
42.9
58.1
40.6
30.0
3.3
3.0
7.6
8.7
1.8
1.4
Bharat Electronics
Neutral
183
-
44,963
10,258
12,470
19.6
19.5
7.3
8.6
25.1
21.3
0.5
0.4
20.4
21.9
3.9
3.2
Voltas
Neutral
548
-
18,129
6,778
8,004
9.6
11.0
17.1
22.4
32.0
24.5
7.6
6.7
17.7
19.8
2.4
2.0
BHEL
Neutral
100
-
36,732
33,200
39,167
6.8
9.5
6.2
11.2
16.1
8.9
0.7
0.7
4.6
8.0
0.7
0.5
Blue Star
Buy
692
867
6,626
5,220
6,207
6.3
6.6
16.8
22.3
41.2
31.1
8.2
7.2
19.9
23.3
1.2
1.0
CG Power and Industrial
Neutral
85
-
5,324
6,555
7,292
7.5
7.5
-
0.8
8,495.0
106.2
1.3
1.3
0.1
1.2
0.9
0.8
Solutions
Greaves Cotton
Neutral
128
-
3,123
1,778
1,993
14.7
15.1
8.1
9.1
15.8
14.1
3.5
3.3
21.8
23.6
1.5
1.4
Stock Watch
November 06, 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Capital Goods
KEC International
Accumulate
314
350
8,071
9,779
11,113
9.4
9.8
14.2
18.2
22.1
17.3
4.2
3.5
21.1
22.1
1.1
1.0
KEI Industries
Accumulate
338
380
2,629
3,001
3,391
10.0
10.0
13.0
16.1
26.0
21.0
4.7
3.9
18.2
18.7
1.1
0.9
Thermax
Neutral
959
-
11,429
4,125
4,747
10.3
10.8
26.7
31.5
35.9
30.5
4.0
3.7
11.2
12.0
2.5
2.2
VATech Wabag
Buy
588
681
3,207
3,867
4,126
9.6
10.0
34.9
39.8
16.8
14.8
2.8
2.4
17.7
17.5
0.8
0.8
Cement
ACC
Neutral
1,804
-
33,870
12,255
13,350
13.5
14.3
58.0
66.2
31.1
27.3
3.7
3.4
11.5
12.2
2.7
2.5
Ambuja Cements
Neutral
282
-
56,045
10,250
11,450
17.5
19.0
7.2
8.3
39.2
34.0
2.8
2.7
7.0
7.8
5.2
4.6
India Cements
Neutral
187
-
5,750
6,135
6,750
14.8
15.2
8.5
11.5
22.0
16.2
1.1
1.0
4.8
6.2
1.3
1.1
JK Cement
Neutral
1,000
-
6,994
4,150
4,775
19.2
20.0
49.0
63.5
20.4
15.8
3.2
2.8
17.0
18.5
2.1
1.8
J K Lakshmi Cement
Neutral
439
-
5,163
3,422
3,757
15.5
17.0
13.5
23.2
32.5
18.9
3.4
2.9
10.8
15.5
1.9
1.7
Orient Cement
Neutral
176
-
3,600
2,215
3,233
16.8
17.0
5.9
6.9
29.8
25.5
2.3
2.1
10.8
10.1
2.6
1.7
UltraTech Cement
Neutral
4,369
-
119,938
28,250
35,150
20.2
23.5
77.5
122.2
56.4
35.8
4.8
4.3
9.6
14.8
4.7
3.8
Construction
KNR Constructions
Neutral
273
-
3,840
1,846
2,203
14.5
14.5
12.1
13.7
22.6
20.0
1.2
1.1
17.5
16.7
2.1
1.8
Larsen & Toubro
Neutral
1,235
-
172,967
95,787
109,476
10.2
11.6
44.5
50.8
27.8
24.3
3.5
3.2
12.9
13.1
2.4
2.1
Gujarat Pipavav Port
Neutral
137
-
6,611
739
842
61.6
62.7
5.1
6.2
26.8
22.2
3.3
3.3
12.7
14.9
8.4
7.3
PNC Infratech
Neutral
199
-
5,114
2,040
2,935
13.0
13.0
6.4
9.0
31.2
22.2
0.8
0.7
9.7
12.2
2.5
1.8
Simplex Infra
Neutral
524
-
2,591
6,012
6,619
11.6
11.7
21.1
31.0
24.9
16.9
1.7
1.6
6.5
8.6
1.0
0.9
Sadbhav Engineering
Neutral
308
-
5,287
3,823
4,426
10.7
10.8
10.3
11.8
29.9
26.1
3.6
3.1
10.1
10.5
1.7
1.5
NBCC
Neutral
263
-
23,652
9,099
12,706
6.4
6.4
7.3
9.6
36.1
27.5
1.6
1.3
27.5
30.5
2.5
1.8
MEP Infra
Neutral
106
-
1,723
2,403
2,910
18.3
16.8
2.4
6.1
45.1
17.5
17.1
11.5
35.2
55.8
1.9
1.5
SIPL
Neutral
128
-
4,516
2,060
2,390
46.8
47.7
(5.8)
(3.1)
4.8
5.5
(14.2)
(2.3)
7.0
6.5
Engineers India
Neutral
192
-
12,942
1,795
2,611
21.1
22.4
5.9
8.1
32.6
23.7
2.3
2.3
12.9
16.1
5.6
3.7
Financials
Axis Bank
Accumulate
540
580
129,470
32,558
35,843
3.5
3.2
27.8
41.0
19.4
13.2
2.1
1.8
11.4
14.9
-
-
Bank of Baroda
Neutral
172
-
39,574
22,533
26,079
2.4
2.4
12.0
20.9
14.3
8.2
0.9
0.9
6.6
11.0
-
-
Canara Bank
Neutral
404
-
24,128
17,925
20,235
2.0
2.1
18.5
36.5
21.8
11.1
0.8
0.8
3.4
6.2
-
-
Can Fin Homes
Buy
467
2,128
6,220
586
741
3.5
3.5
107.8
141.0
4.3
3.3
1.0
0.8
24.1
25.6
-
-
Cholamandalam Inv. &
Neutral
1,241
-
19,403
2,826
3,307
6.3
6.3
53.7
64.6
23.1
19.2
3.9
3.4
18.3
18.9
-
-
Fin. Co.
Dewan Housing Finance Accumulate
666
712
20,872
2,676
3,383
2.4
2.7
37.4
49.7
17.8
13.4
2.3
2.0
13.8
16.2
-
-
Equitas Holdings
Buy
147
235
4,963
1,125
1,380
9.6
9.8
1.5
6.0
97.7
24.4
2.2
2.1
2.4
8.2
-
-
Federal Bank
Accumulate
116
125
22,597
4,896
5,930
2.8
3.1
5.4
7.6
21.6
15.3
1.8
1.7
8.5
11.0
-
-
Stock Watch
November 06, 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Financials
GIC Housing
Buy
481
655
2,588
376
477
3.6
3.7
33.0
40.0
14.6
12.0
2.6
2.2
20.0
23.0
-
-
HDFC Bank
Neutral
1,831
-
473,194
55,236
63,253
4.5
4.4
68.9
82.4
26.6
22.2
4.6
3.8
18.7
18.5
-
-
ICICI Bank
Neutral
316
-
202,654
42,361
51,378
3.6
3.9
18.4
25.7
17.2
12.3
1.9
1.8
11.3
15.0
-
-
Karur Vysya Bank
Buy
127
180
7,699
3,289
3,630
3.7
3.9
10.8
14.1
11.8
9.1
1.4
1.3
12.5
14.7
-
-
LIC Housing Finance
Neutral
609
-
30,721
4,895
6,332
3.4
3.7
50.7
66.8
12.0
9.1
2.4
2.0
21.7
23.8
-
-
Punjab Natl.Bank
Neutral
207
-
44,113
23,708
25,758
2.1
2.1
5.9
16.4
35.3
12.6
1.0
1.0
3.0
8.3
-
-
RBL Bank
Neutral
520
-
21,473
2,309
2,888
2.6
2.5
16.4
19.1
31.8
27.3
4.0
3.6
13.3
13.8
-
-
Repco Home Finance
Buy
613
825
3,838
496
597
4.4
4.2
38.5
48.7
16.0
12.6
2.9
2.4
19.6
20.6
-
-
South Ind.Bank
Neutral
32
-
5,711
3,195
3,567
3.0
3.1
3.0
3.8
10.5
8.3
1.0
0.9
10.5
11.9
-
-
St Bk of India
Neutral
325
-
280,542
105,827
121,056
2.4
2.5
16.1
25.6
20.2
12.7
1.6
1.4
6.6
9.9
-
-
Union Bank
Neutral
173
-
12,589
14,650
16,225
2.3
2.3
23.1
32.5
7.5
5.3
0.6
0.5
7.1
9.2
-
-
Yes Bank
Neutral
326
-
74,647
11,088
13,138
3.0
2.9
84.0
99.3
3.9
3.3
0.6
0.5
16.3
16.8
-
-
FMCG
Akzo Nobel India
Neutral
1,861
-
8,924
3,164
3,607
13.8
13.7
58.6
67.9
31.8
27.4
7.8
6.9
24.5
25.1
2.7
2.3
Asian Paints
Neutral
1,173
-
112,552
17,603
20,615
18.6
18.6
2,128.9
2,543.3
0.6
0.5
11.6
9.8
28.0
28.9
6.2
5.2
Britannia
Neutral
4,654
-
55,871
9,690
11,278
14.8
15.4
84.0
101.0
55.4
46.1
20.2
16.1
40.6
39.0
5.7
4.9
Colgate
Neutral
1,033
-
28,096
4,420
5,074
24.9
25.3
28.6
32.8
36.1
31.5
14.3
11.5
43.8
40.5
6.1
5.3
Dabur India
Neutral
340
-
59,892
8,346
9,344
19.6
19.9
7.8
9.0
43.6
37.8
8.8
7.9
25.2
24.8
6.8
6.0
GlaxoSmith Con*
Neutral
5,370
-
22,586
5,072
5,760
18.2
18.4
176.3
199.2
30.5
27.0
6.5
5.9
21.2
21.7
3.8
3.3
Godrej Consumer
Neutral
971
-
66,143
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
1,238
-
267,984
37,077
41,508
20.3
21.8
5,189.9
6,318.5
0.2
0.2
37.8
32.2
74.8
82.0
7.1
6.3
ITC
Neutral
265
-
323,265
44,588
49,853
37.0
37.3
9.6
11.0
27.7
24.1
6.8
6.5
25.1
27.3
6.7
6.0
Marico
Neutral
313
-
40,353
6,788
7,766
18.5
19.2
7.1
8.5
44.0
36.8
15.4
13.2
36.9
38.0
5.8
5.0
Nestle*
Neutral
7,409
-
71,430
10,083
11,182
20.0
20.9
119.7
141.3
61.9
52.4
218.1
199.4
36.7
39.8
6.8
6.0
Tata Global
Neutral
225
-
14,219
7,121
7,641
11.9
12.3
6.9
8.0
32.7
28.2
2.2
2.1
6.8
7.2
1.8
1.7
Procter & Gamble
Neutral
8,820
-
28,631
3,034
3,579
27.1
27.7
167.7
198.8
52.6
44.4
14.1
12.2
28.8
29.5
8.9
7.4
Hygiene
IT
HCL Tech^
Buy
848
1,014
120,944
50,009
54,608
22.1
22.1
62.8
67.6
13.5
12.5
3.0
2.6
22.4
20.6
2.1
1.8
Infosys
Buy
927
1,120
212,851
70,333
75,960
26.0
26.0
61.7
65.9
15.0
14.1
2.8
2.6
18.9
18.7
2.4
2.2
TCS
Neutral
2,613
-
514,814
123,384
134,488
26.1
26.1
133.2
143.7
19.6
18.2
5.4
5.0
27.6
27.8
3.8
3.5
Tech Mahindra
Accumulate
464
533
45,228
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
November 06, 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
IT
Wipro
Neutral
294
-
143,227
54,164
56,544
22.3
22.3
18.8
19.5
15.7
15.1
2.5
2.2
15.0
13.6
1.9
1.6
Media
D B Corp
Neutral
371
-
6,830
2,404
2,625
30.5
31.5
23.7
26.9
15.7
13.8
3.7
3.1
23.5
22.8
2.7
2.4
HT Media
Neutral
102
-
2,371
2,589
2,830
15.1
15.4
8.3
10.9
12.3
9.3
1.0
0.9
8.4
10.4
0.5
0.3
Jagran Prakashan
Buy
177
225
5,788
2,541
2,835
28.5
28.7
12.7
14.1
13.9
12.6
2.9
2.5
21.3
21.4
2.1
1.8
Sun TV Network
Neutral
881
-
34,733
3,238
3,789
51.9
55.1
30.9
38.0
28.5
23.2
8.1
7.1
30.0
31.0
10.2
8.6
Hindustan Media
Neutral
242
-
1,777
1,002
1,074
23.3
23.5
29.2
33.8
8.3
7.2
1.3
1.1
15.6
15.4
0.8
0.5
Ventures
TV Today Network
Accumulate
379
435
2,263
667
727
27.7
27.7
18.6
20.1
20.4
18.9
3.2
3.2
15.6
17.3
2.9
2.7
Music Broadcast Limited Accumulate
387
434
2,206
271
317
91.0
109.0
6.0
10.0
64.4
38.7
4.0
3.7
6.5
9.3
7.7
6.4
Metals & Mining
Coal India
Neutral
287
-
177,904
82,301
91,235
17.0
18.0
17.1
20.5
16.8
14.0
3.2
3.0
45.0
55.0
1.8
1.6
Hind. Zinc
Neutral
322
-
136,119
22,108
24,555
57.0
58.0
22.1
26.3
14.6
12.3
4.7
3.8
32.0
35.0
5.2
4.3
Hindalco
Neutral
269
-
60,241
102,350
105,355
13.5
14.5
21.5
24.5
12.5
11.0
1.7
1.5
15.0
15.2
1.2
1.1
JSW Steel
Neutral
267
-
64,516
64,500
68,245
21.1
21.5
20.1
21.2
13.3
12.6
2.4
2.1
-
-
1.7
1.7
NMDC
Neutral
128
-
40,466
10,209
11,450
47.0
48.0
11.1
12.1
11.5
10.6
1.6
1.5
-
-
3.5
3.1
SAIL
Neutral
87
-
35,829
54,100
63,555
3.0
10.0
(10.0)
1.5
57.8
1.2
1.1
-
-
1.7
1.4
Vedanta
Neutral
338
-
125,678
81,206
87,345
28.0
29.0
26.5
33.5
12.8
10.1
2.9
2.5
-
-
2.3
2.0
Tata Steel
Neutral
709
-
68,850
121,445
126,500
16.2
17.2
65.4
81.3
10.8
8.7
1.7
1.5
-
-
1.1
1.0
Oil & Gas
GAIL
Neutral
464
-
78,400
53,115
52,344
14.2
15.3
30.0
31.1
15.5
14.9
1.9
1.8
-
-
1.2
1.2
ONGC
Neutral
191
-
245,564
83,111
84,934
44.2
44.9
16.4
16.9
11.7
11.3
1.4
1.3
-
-
2.8
2.8
Indian Oil Corp
Neutral
413
-
200,670
396,116
432,560
8.5
8.8
40.1
42.2
10.3
9.8
1.8
1.6
-
-
0.7
0.6
Reliance Industries
Neutral
946
-
615,000
257,711
267,438
17.0
18.2
89.1
89.5
10.6
10.6
1.0
0.9
-
-
2.0
2.0
Pharmaceuticals
Alembic Pharma
Buy
505
600
9,524
3,903
4,584
18.2
19.2
21.8
27.2
23.2
18.6
4.2
3.5
19.8
20.6
2.5
2.1
Alkem Laboratories Ltd
Accumulate
1,926
2,079
23,028
6,320
7,341
17.5
19.8
72.7
96.6
26.5
19.9
4.7
4.0
16.7
18.7
3.6
3.0
Aurobindo Pharma
Neutral
788
-
46,162
17,086
19,478
22.1
22.0
44.7
51.4
17.6
15.3
3.9
3.2
24.7
22.7
2.8
2.5
Aventis*
Neutral
4,609
-
10,615
2,508
2,862
16.8
16.8
139.9
153.8
33.0
30.0
4.8
3.9
23.5
25.8
3.8
3.2
Cadila Healthcare
Reduce
496
426
50,819
11,584
13,228
20.3
20.4
18.7
21.3
26.6
23.3
5.9
4.9
24.6
22.9
4.2
3.6
Cipla
Sell
640
458
51,468
16,619
19,437
15.4
16.2
19.7
24.3
32.5
26.3
3.7
3.3
12.0
13.2
3.3
2.8
Dr Reddy's
Neutral
2,418
-
40,082
15,844
17,973
17.6
18.2
91.7
111.0
26.4
21.8
3.0
2.7
11.9
13.0
2.7
2.4
GSK Pharma*
Neutral
2,656
-
22,494
3,260
3,651
15.0
18.0
46.1
58.6
57.6
45.3
11.8
12.2
20.0
26.5
6.8
6.2
Indoco Remedies
Sell
277
153
2,554
1,154
1,310
14.9
14.9
11.3
12.7
24.5
21.8
3.5
3.1
15.0
15.0
2.3
2.0
Stock Watch
November 06, 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Pharmaceuticals
Ipca labs
Neutral
525
-
6,623
3,593
4,022
14.5
15.5
19.4
25.2
27.1
20.8
2.5
2.2
9.5
11.2
1.9
1.7
Lupin
Buy
1,049
1,467
47,405
18,657
21,289
21.3
23.3
52.8
66.7
19.9
15.7
3.0
2.6
16.3
17.5
2.6
2.1
Natco Pharma
Accumulate
955
1,057
16,638
1,886
2,016
32.3
29.5
23.2
22.0
41.2
43.3
8.6
7.6
20.9
17.6
8.7
8.1
Sun Pharma
Neutral
552
-
132,486
32,899
36,451
26.9
25.4
31.6
32.3
17.5
17.1
3.1
2.7
18.7
18.8
3.7
3.1
Syngene International
Accumulate
505
557
10,108
1,402
1,823
32.8
36.0
15.9
20.7
31.8
24.5
5.9
4.9
18.7
20.0
7.2
5.5
Power
Tata Power
Neutral
85
-
22,855
32,547
33,806
20.5
20.5
4.7
5.4
18.0
15.8
1.7
1.5
10.5
10.5
1.7
1.6
NTPC
Neutral
182
-
150,191
86,070
101,246
28.3
30.7
12.9
16.2
14.1
11.2
1.5
1.3
10.6
12.4
3.1
2.8
Power Grid
Accumulate
211
223
110,177
29,183
32,946
89.7
90.0
18.0
20.8
11.7
10.1
2.0
1.7
17.7
18.2
7.7
7.2
Real Estate
Prestige Estate
Neutral
298
-
11,166
4,607
5,146
21.0
22.2
7.9
9.8
37.7
30.4
2.3
2.2
10.3
12.0
3.6
3.3
MLIFE
Buy
431
522
2,211
487
590
12.3
17.8
21.0
31.2
20.5
13.8
1.1
1.0
5.2
7.4
3.3
2.7
Telecom
Bharti Airtel
Neutral
541
-
216,399
97,903
105,233
36.0
36.3
9.3
11.1
58.2
49.0
2.8
2.7
5.0
5.6
3.2
2.9
Idea Cellular
Neutral
106
-
38,251
35,012
37,689
27.1
27.7
(4.4)
(2.7)
1.7
1.7
(6.8)
(4.6)
2.4
2.2
zOthers
Abbott India
Neutral
4,329
-
9,198
3,244
3,723
14.9
16.1
167.5
209.4
25.8
20.7
5.7
4.8
23.7
24.8
2.5
2.1
Asian Granito
Buy
495
570
1,488
1,169
1,286
12.5
12.5
16.0
19.7
31.0
25.1
3.3
2.9
10.7
11.6
1.5
1.3
Bajaj Electricals
Neutral
394
-
3,997
4,646
5,301
6.7
7.6
16.1
22.3
24.5
17.7
4.0
3.4
16.4
19.2
0.9
0.8
Banco Products (India)
Neutral
214
-
1,533
1,530
1,695
13.2
12.7
19.0
20.0
11.3
10.7
1.8
1.6
0.2
0.2
0.9
101.2
Coffee Day Enterprises
Neutral
223
-
4,600
3,494
3,913
17.4
18.0
4.8
5.7
-
39.2
2.0
1.9
-
0.1
1.8
1.6
Ltd
Elecon Engineering
Neutral
75
-
840
171
201
15.0
16.2
36.0
43.0
2.1
1.7
0.2
0.2
0.1
0.1
4.3
3.6
Garware Wall Ropes
Neutral
920
-
2,014
928
1,003
15.2
15.2
39.4
43.2
23.3
21.3
3.9
3.3
16.5
15.4
2.0
1.8
Goodyear India*
Neutral
814
-
1,878
1,717
1,866
11.8
12.3
47.9
49.8
17.0
16.4
2.6
2.3
15.6
15.7
0.8
112.9
Hitachi
Neutral
2,385
-
6,485
2,355
2,715
10.3
10.8
49.0
60.9
48.7
39.2
11.4
9.0
0.2
0.2
2.8
2.4
HSIL
Neutral
420
-
3,037
2,240
2,670
14.6
15.0
17.0
22.0
24.7
19.1
2.0
1.9
0.1
0.1
1.6
1.3
Interglobe Aviation
Neutral
1,254
-
45,344
22,570
27,955
14.2
15.0
63.6
81.8
19.7
15.3
10.4
8.8
0.5
0.6
1.7
1.3
Jyothy Laboratories
Neutral
383
-
6,956
1,781
2,044
14.1
15.0
9.4
10.5
41.0
36.5
8.7
8.2
0.2
0.2
4.1
3.5
Linc Pen & Plastics
Neutral
248
-
367
420
462
9.3
9.3
15.3
17.1
16.2
14.5
2.7
2.8
16.9
19.5
0.9
0.8
M M Forgings
Neutral
860
-
1,038
542
642
20.1
21.0
41.6
56.8
20.7
15.2
2.9
2.4
0.1
0.2
2.3
2.0
Mirza International
Neutral
162
-
1,948
1,148
1,285
18.0
18.0
8.0
9.4
20.1
17.3
3.3
2.8
16.3
16.1
1.9
1.6
Navkar Corporation
Buy
195
265
2,778
561
617
41.5
41.5
11.5
12.7
16.9
15.3
1.8
1.6
10.5
10.4
5.6
4.9
Nilkamal
Neutral
1,612
-
2,405
2,317
2,525
11.4
11.1
96.0
105.0
16.8
15.4
2.9
2.5
0.2
0.2
1.0
0.9
Stock Watch
November 06, 2017
Company Name
Reco
CMP
Target Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E
zOthers
Parag Milk Foods
Neutral
278
-
2,339
1,987
2,379
7.6
9.0
12.4
18.3
22.4
15.2
3.2
2.8
8.2
13.2
1.3
1.1
Radico Khaitan
Neutral
212
-
2,819
1,811
1,992
13.2
13.2
8.1
8.8
26.1
24.1
2.6
2.9
10.1
12.0
1.9
1.7
Relaxo Footwears
Neutral
589
-
7,074
1,981
2,310
13.7
14.5
12.0
15.5
49.1
38.0
9.6
7.7
0.2
0.2
3.6
3.1
Siyaram Silk Mills
Accumulate
607
650
2,845
1,769
1,981
12.7
12.7
22.6
26.2
26.8
23.1
4.2
3.6
15.5
15.5
1.8
1.6
Styrolution ABS India* Neutral
948
-
1,667
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
372
-
1,629
4,870
5,320
7.7
7.8
22.8
28.1
16.3
13.2
2.2
1.9
0.1
0.1
0.6
0.5
TVS Srichakra
Neutral
3,205
-
2,454
2,729
2,893
12.7
12.5
248.5
265.0
12.9
12.1
3.7
3.0
0.3
0.3
0.9
0.8
Visaka Industries
Neutral
687
-
1,092
1,104
1,214
12.1
12.6
31.0
37.9
22.2
18.2
2.7
2.4
0.1
0.1
1.2
1.1
VIP Industries
Accumulate
280
300
3,957
1,450
1,693
10.4
10.5
6.5
7.8
42.8
35.9
9.0
7.9
21.1
22.1
2.7
2.3
Navin Fluorine
Neutral
727
-
3,586
945
1,154
22.4
22.6
28.7
34.8
25.4
20.9
4.2
3.6
-
-
3.3
2.6
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on November 03, 2017
Market Outlook
November 06, 2017
Research Team Tel: 022 - 39357800
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