Market Outlook
November 07, 2017
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open positive tracking global indices and SGX Nifty.
BSE Sensex
0.1
46
33,731
Nifty
(0.0)
(1)
10,452
The US markets moved mostly higher during trading on Monday, although trading
activity was somewhat subdued. With the upward move on the day, the major
Mid Cap
0.5
77
16,790
averages reached new record closing highs. The Dow inched up 9 points to 23,548,
Small Cap
0.3
55
17,911
while the Nasdaq rose 0.3 percent to 6,786 and the S&P 500 crept up 0.1 percent
Bankex
(0.3)
(95)
28,997
to 2,591.
Global Indices
Chg (%)
(Pts)
(Close)
London’s benchmark index closed at 7,562 points, a 0.03 per cent gain from
Friday’s close. The index hit another record closing high as commodity continue to
Dow Jones
0.0
9
23,548
firm up. Oil companies and miners were among the leading performers as
Nasdaq
0.3
22
6,786
commodity prices rose.
FTSE
0.0
2
7,562
Nikkei
0.0
9
22,548
The BSE Sensex hit a fresh record on Monday as it settled at 33,731, driven by
better-than- expected earnings by blue-chip companies. NSE Nifty however pulled
Hang Seng
(0.0)
(7)
28,597
back from record on profit- booking and ended in the negative terrain. The Sensex
Shanghai Com
0.5
16
3,388
after scaling an all-time high of 33,848.42 intraday settled at the new high of
33,731, up 0.1%. The NSE Nifty smashed all records to touch a fresh life-time high
Advances / Declines
BSE
NSE
of 10,490 during the day, before ending down 0.1%, at 10,452.
Advances
1,432
854
News Analysis
Declines
1,419
886
Reliance Nippon Life Asset management - Book profit
Unchanged
160
75
MAS Financials Services - Book profit
Volumes (` Cr)
Detailed analysis on Pg2
BSE
5,127
Investor’s Ready Reckoner
NSE
35,436
Key Domestic & Global Indicators
Stock Watch: Latest investment recommendations on 150+ stocks
Net Inflows (` Cr)
Net
Mtd
Ytd
Refer Pg5 onwards
FII
1,537
2,580
41,032
MFs
(138)
(138)
95,272
Top Picks
CMP
Target
Upside
Company
Sector
Rating
(`)
(`)
(%)
Top Gainers
Price (`)
Chg (%)
Blue Star
Capital Goods
Buy
675
867
28.4
Hindcopper
104
19.5
Dewan Housing Finance
Financials
Accumulate
642
712
10.9
Titan
785
19.0
Asian Granito
Other
Buy
493
570
15.7
Navkar Corporation
Other
Buy
192
265
37.9
Mmtc
87
18.9
KEI Industries
Capital Goods Accumulate
334
380
13.8
Infibeam
189
12.8
More Top Picks on Pg4
Hathway
42
10.3
Key Upcoming Events
Previous
Consensus
Top Losers
Price (`)
Chg (%)
Date
Region
Event Description
Reading
Expectations
Recltd
166
(7.6)
Nov08
China
Exports YoY%
8.10
7.20
Nov09
China
Consumer Price Index (YoY)
1.60
1.70
Rcom
16
(6.2)
Nov09
US
Initial Jobless claims
229.00
231.50
Relcapital
558
(5.2)
Nov10
UK
Industrial Production (YoY)
1.60
1.90
Idea
101
(5.1)
Nov10
India
Exports YoY%
25.67
Sci
104
(4.7)
More Events on Pg7
As on November, 06 2017
Market Outlook
November 07, 2017
News Analysis
Reliance Nippon Life Asset management - Book profit
We had recommended SUBSCRIBE for Reliance Nippon Life Asset Management
Ltd (RNAM) IPO which successfully raised `1,542cr at `252. At higher end IPO
band, it was demanding market cap of `15,422cr (which is 6.8% of the MF
AUM `2,28,329cr for the month of August 2017). At yesterday’s closing price, it is
trading at 12.7% premium ton IPO price. We recommend to book profit in
Reliance Nippon Life Asset management Ltd.
MAS Financials Services - Book profit
We had also recommended SUBSCRIBE for MAS Financials Services Ltd. Company
raised `460cr at the issue price of `459 (6.85x FY17 book value pre-IPO).
Although valuations were on the higher side, the strong and sustainable growth
and ROE prospects of the company, gave us comfort to assign Subscribe rating to
the issue. At yesterday’s closing price of `633, it is trading at 38% premium to IPO
price and 5.6x post-IPO book value. We recommend to book profit in MAS
Financials Services Ltd.
Economic and Political News
Govt may review monthly GST return filing process
Govt to give 60% stake in ONGC, OIL fields to private companies
Oil hits $63 a bbl, highest since 2015 on output tightening by Saudi Arabia
Corporate News
Wheels India standalone PAT rises 112.81% in the September quarter
Greenlam Industries standalone PAT rises 35.97% in the September quarter
NBFCs grabbing market share of banks, says BCG report
Indian Bank soars 9% post Q2 results
RCom shares tumble over 6% on news that Brookfield called off `11,000cr
merger deal
Market Outlook
November 07, 2017
Quarterly Bloomberg Brokers Consensus Estimate
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
BHEL Ltd - Nov 07, 2017
Particulars ( ` cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY18
q-o-q (%)
Sales
6,793
6,646
2.2
5,505
23.9
EBIDTA
254
155
63.8
(88)
-
%
3.8
2.3
(1.6)
PAT
158
109
44.9
80
97.5
UBL Ltd - Nov 08, 2017
Particulars ( ` cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY18
q-o-q (%)
Sales
1,119
1,038
7.9
1,674
(33.2)
EBIDTA
125
121
3.4
318
(60.9)
%
11.2
11.7
19.1
PAT
31
27
14.8
162
(80.8)
Ashok Leyland Ltd - Nov 08, 2017
Particulars ( ` cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY18
q-o-q (%)
Sales
6,177
4,622
33.7
4,237
45.8
EBIDTA
680
536
26.9
290
134
%
11.1
11.6
6.9
PAT
383
294
30.3
111
245
Market Outlook
November 07, 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
23,407
1,958
2,079
6.2
more products in USA, which bodes for its international
business.
We expect the company would report strong profitability
Asian Granito
1,482
493
570
15.7
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
6,465
675
867
28.4
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
20,135
642
712
10.9
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
7,617
126
180
42.8
Increasing share of CASA will help in NIM
improvement.
High order book execution in EPC segment, rising B2C
KEI Industries
2,597
334
380
13.8
sales and higher exports to boost the revenues and
profitability
Expected to benefit from the lower capex requirement
Music Broadcast
2,185
383
434
13.3
and 15 year long radio broadcast licensing.
Massive capacity expansion along with rail advantage
Navkar Corporation
2,739
192
265
37.9
at ICD as well CFS augur well for the company
Strong brands and distribution network would boost
Siyaram Silk Mills
2,815
601
650
8.2
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
2,184
366
435
18.8
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
2,50,773
8,302
8,750
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
2,556
475
655
38.0
year; change in borrowing mix will help in NIM
improvement..
Source: Company, Angel Research
Market Outlook
November 07, 2017
Key Upcoming Events
Result Calendar
Date
Company
November 07, 2017
BHEL, IOB, GlaxoSmith Con, Finolex Cables, Jyothy Laboratories, Cipla, Alembic Pharma, Indoco Remedies
November 08, 2017
Bharat Forge, Ashok Leyland, Thermax, J K Lakshmi Cements, Oriental Bank, Electrosteel Castings, Petronet LNG, ITD
Source: Bloomberg, Angel Research
Global economic events release calendar
Bloomberg Data
Date
Time
Country
Event Description
Unit
Period
Last Reported
Estimated
Nov 08, 2017
China
Exports YoY%
% Change
Oct
8.10
7.20
Nov 09, 2017
7:00 AMChina
Consumer Price Index (YoY)
% Change
Oct
1.60
1.70
7:00 PMUS
Initial Jobless claims
Thousands
Nov 4
229.00
231.50
Nov 10, 2017
3:00 PMUK
Industrial Production (YoY)
% Change
Sep
1.60
1.90
India
Exports YoY%
% Change
Oct
25.67
Nov 13, 2017
5:30 PMIndia
Industrial Production YoY
% Change
Sep
4.30
3.60
India
Imports YoY%
% Change
Oct
18.09
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
7:00 PMUS
Consumer price index (mom)
% Change
Oct
0.50
0.10
Source: Bloomberg, Angel Research
Market Outlook
November 07, 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 07, 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 07, 2017
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
74,311
(0.6)
10.1
13.8
Russia
Micex
2,081
0.2
5.6
5.8
India
Nifty
10,452
5.4
3.7
22.8
China
Shanghai Composite
3,388
1.5
2.9
8.9
South Africa
Top 40
53,564
5.6
8.3
22.3
Mexico
Mexbol
48,967
(4.1)
(5.4)
1.0
Indonesia
LQ45
1,007
2.5
4.7
8.3
Malaysia
KLCI
1,742
(1.1)
(1.3)
4.4
Thailand
SET 50
1,086
0.4
8.1
15.4
USA
Dow Jones
23,548
3.9
6.5
31.6
UK
FTSE
7,562
0.7
0.4
10.5
Japan
Nikkei
22,548
9.4
12.3
29.2
Germany
DAX
13,469
3.7
9.4
26.3
France
CAC
5,507
2.4
5.6
22.2
Source: Bloomberg, Angel Research p68in4
Stock Watch
November 07, 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
237
209
4,618
1,873
2,099
15.0
15.0
9.5
10.5
25.0
22.6
3.8
3.4
15.8
16.0
2.4
2.1
United Phosphorus
Accumulate
762
820
38,692
18,922
21,949
18.0
18.5
36.2
45.6
21.0
16.7
4.4
3.6
22.7
23.8
2.2
1.8
Auto & Auto Ancillary
Ashok Leyland
Neutral
126
-
36,845
23,339
27,240
10.1
10.8
4.7
6.2
27.1
20.3
5.4
4.8
20.0
23.6
1.5
1.3
Bajaj Auto
Neutral
3,212
-
92,955
23,936
27,955
19.5
20.1
142.7
167.3
22.5
19.2
4.9
4.4
21.8
22.8
3.5
2.9
Bharat Forge
Buy
711
875
33,082
7,637
8,755
21.7
23.2
36.1
47.3
19.7
15.0
3.5
3.0
18.5
20.8
4.2
3.6
Eicher Motors
Neutral
31,088
-
84,630
19,043
22,837
19.5
19.9
835.4
1,019.0
37.2
30.5
13.9
10.7
40.9
37.8
4.3
3.5
Gabriel India
Neutral
199
-
2,862
1,782
2,033
9.7
10.2
7.1
8.9
28.1
22.5
5.7
4.8
21.0
22.2
1.6
1.3
Hero Motocorp
Accumulate
3,691
4,129
73,716
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
65
-
2,598
1,441
1,662
14.4
14.8
13.9
17.6
4.7
3.7
1.3
1.0
30.0
31.0
1.8
1.5
Mahindra and Mahindra Neutral
1,364
-
84,739
46,971
53,816
13.6
14.0
67.7
79.8
20.2
17.1
2.9
2.6
15.0
15.9
1.7
1.4
Maruti
Accumulate
8,302
8,750
250,773
81,825
101,245
15.0
15.0
283.5
356.0
29.3
23.3
6.4
5.2
21.9
22.4
2.7
2.1
Minda Industries
Neutral
952
-
8,229
4,328
5,084
11.0
11.9
27.3
36.4
34.9
26.2
7.4
5.8
23.1
25.6
2.0
1.7
Motherson Sumi
Neutral
366
-
76,965
55,937
64,445
10.8
11.4
16.9
21.1
21.6
17.4
4.8
4.9
25.2
25.4
1.4
1.2
Tata Motors
Neutral
462
-
133,266
303,167
343,649
11.8
13.8
33.1
54.7
13.9
8.4
2.3
1.8
16.9
23.0
0.5
0.4
TVS Motor
Neutral
706
-
33,555
13,992
16,216
9.0
9.4
17.1
20.3
41.4
34.8
11.0
8.5
29.7
27.7
2.3
2.0
Amara Raja Batteries
Buy
691
858
11,806
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
203
-
17,276
8,689
9,854
15.1
15.2
9.7
11.0
21.1
18.5
3.7
3.3
15.7
16.1
1.7
1.5
Apollo Tyres
Neutral
243
-
12,364
15,739
17,326
13.3
14.6
20.4
26.7
11.9
9.1
1.4
1.3
20.4
26.7
1.0
0.9
Ceat
Neutral
1,790
-
7,239
6,661
7,717
11.1
14.2
116.2
178.2
15.4
10.0
2.7
2.2
15.2
21.3
1.2
1.0
JK Tyres
Neutral
153
-
3,470
8,318
9,239
16.2
16.4
21.0
27.5
7.3
5.6
1.4
1.2
19.1
20.4
0.9
0.7
Swaraj Engines
Neutral
1,980
-
2,459
788
889
16.4
16.5
71.6
81.0
27.7
24.5
8.0
7.4
29.6
31.0
2.8
2.4
Subros
Neutral
251
-
1,507
1,855
2,135
11.6
11.8
10.3
14.7
24.5
17.2
3.7
3.2
15.8
19.1
1.0
0.9
Capital Goods
BEML
Neutral
1,786
-
7,438
4,286
5,194
7.1
8.2
42.9
58.1
41.6
30.7
3.4
3.1
7.6
8.7
1.8
1.5
Bharat Electronics
Neutral
185
-
45,368
10,258
12,470
19.6
19.5
7.3
8.6
25.3
21.5
0.5
0.4
20.4
21.9
3.9
3.2
Voltas
Neutral
553
-
18,285
6,778
8,004
9.6
11.0
17.1
22.4
32.3
24.7
7.7
6.8
17.7
19.8
2.4
2.0
BHEL
Neutral
99
-
36,310
33,200
39,167
6.8
9.5
6.2
11.2
16.0
8.8
0.7
0.7
4.6
8.0
0.7
0.5
Blue Star
Buy
675
867
6,465
5,220
6,207
6.3
6.6
16.8
22.3
40.2
30.3
8.0
7.1
19.9
23.3
1.2
1.0
CG Power and Industrial
Neutral
88
-
5,512
6,555
7,292
7.5
7.5
-
0.8
8,795.0
109.9
1.4
1.4
0.1
1.2
0.9
0.8
Solutions
Greaves Cotton
Neutral
128
-
3,117
1,778
1,993
14.7
15.1
8.1
9.1
15.8
14.0
3.5
3.3
21.8
23.6
1.5
1.3
Stock Watch
November 07, 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
316
350
8,112
9,779
11,113
9.4
9.8
14.2
18.2
22.2
17.3
4.3
3.5
21.1
22.1
1.1
1.0
KEI Industries
Accumulate
334
380
2,597
3,001
3,391
10.0
10.0
13.0
16.1
25.7
20.7
4.7
3.9
18.2
18.7
1.0
0.9
Thermax
Neutral
969
-
11,550
4,125
4,747
10.3
10.8
26.7
31.5
36.3
30.8
4.1
3.7
11.2
12.0
2.5
2.2
VATech Wabag
Accumulate
593
681
3,239
3,867
4,126
9.6
10.0
34.9
39.8
17.0
14.9
2.8
2.4
17.7
17.5
0.9
0.8
Cement
ACC
Neutral
1,797
-
33,743
12,255
13,350
13.5
14.3
58.0
66.2
31.0
27.1
3.7
3.4
11.5
12.2
2.7
2.5
Ambuja Cements
Neutral
280
-
55,648
10,250
11,450
17.5
19.0
7.2
8.3
38.9
33.8
2.8
2.6
7.0
7.8
5.2
4.6
India Cements
Neutral
182
-
5,621
6,135
6,750
14.8
15.2
8.5
11.5
21.5
15.9
1.1
1.0
4.8
6.2
1.3
1.1
JK Cement
Neutral
1,000
-
6,990
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
442
-
5,202
3,422
3,757
15.5
17.0
13.5
23.2
32.8
19.1
3.4
2.9
10.8
15.5
1.9
1.7
Orient Cement
Neutral
177
-
3,623
2,215
3,233
16.8
17.0
5.9
6.9
30.0
25.6
2.3
2.1
10.8
10.1
2.6
1.8
UltraTech Cement
Neutral
4,421
-
121,362
28,250
35,150
20.2
23.5
77.5
122.2
57.0
36.2
4.8
4.4
9.6
14.8
4.8
3.8
Construction
KNR Constructions
Neutral
271
-
3,816
1,846
2,203
14.5
14.5
12.1
13.7
22.4
19.9
1.2
1.1
17.5
16.7
2.1
1.8
Larsen & Toubro
Neutral
1,223
-
171,280
95,787
109,476
10.2
11.6
44.5
50.8
27.5
24.1
3.4
3.2
12.9
13.1
2.3
2.1
Gujarat Pipavav Port
Neutral
136
-
6,558
739
842
61.6
62.7
5.1
6.2
26.6
22.1
3.3
3.2
12.7
14.9
8.3
7.2
PNC Infratech
Neutral
197
-
5,045
2,040
2,935
13.0
13.0
6.4
9.0
30.7
21.9
0.8
0.7
9.7
12.2
2.5
1.8
Simplex Infra
Neutral
544
-
2,692
6,012
6,619
11.6
11.7
21.1
31.0
25.9
17.6
1.8
1.6
6.5
8.6
1.0
0.9
Sadbhav Engineering
Neutral
311
-
5,329
3,823
4,426
10.7
10.8
10.3
11.8
30.2
26.3
3.6
3.2
10.1
10.5
1.7
1.5
NBCC
Neutral
264
-
23,756
9,099
12,706
6.4
6.4
7.3
9.6
36.3
27.6
1.6
1.3
27.5
30.5
2.5
1.8
MEP Infra
Neutral
103
-
1,668
2,403
2,910
18.3
16.8
2.4
6.1
43.6
16.9
16.6
11.2
35.2
55.8
1.9
1.5
SIPL
Neutral
123
-
4,317
2,060
2,390
46.8
47.7
(5.8)
(3.1)
4.6
5.2
(14.2)
(2.3)
6.9
6.4
Engineers India
Neutral
189
-
12,729
1,795
2,611
21.1
22.4
5.9
8.1
32.0
23.3
2.3
2.2
12.9
16.1
5.5
3.6
Financials
Axis Bank
Accumulate
534
580
127,924
32,558
35,843
3.5
3.2
27.8
41.0
19.2
13.0
2.1
1.8
11.4
14.9
-
-
Bank of Baroda
Neutral
172
-
39,632
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
406
-
24,256
17,925
20,235
2.0
2.1
18.5
36.5
22.0
11.1
0.8
0.8
3.4
6.2
-
-
Can Fin Homes
Neutral
456
-
6,074
586
741
3.5
3.5
107.8
141.0
4.2
3.2
0.9
0.8
24.1
25.6
-
-
Cholamandalam Inv. &
Neutral
1,266
-
19,780
2,826
3,307
6.3
6.3
53.7
64.6
23.6
19.6
4.0
3.4
18.3
18.9
-
-
Fin. Co.
Dewan Housing Finance Accumulate
642
712
20,135
2,676
3,383
2.4
2.7
37.4
49.7
17.2
12.9
2.3
2.0
13.8
16.2
-
-
Equitas Holdings
Buy
144
235
4,894
1,125
1,380
9.6
9.8
1.5
6.0
96.3
24.1
2.2
2.0
2.4
8.2
-
-
Federal Bank
Accumulate
117
125
22,723
4,896
5,930
2.8
3.1
5.4
7.6
21.7
15.4
1.9
1.7
8.5
11.0
-
-
Stock Watch
November 07, 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
475
655
2,556
376
477
3.6
3.7
33.0
40.0
14.4
11.9
2.6
2.2
20.0
23.0
-
-
HDFC Bank
Neutral
1,831
-
473,130
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
-
202,846
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
126
180
7,617
3,289
3,630
3.7
3.9
10.8
14.1
11.6
9.0
1.4
1.2
12.5
14.7
-
-
LIC Housing Finance
Neutral
607
-
30,620
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
201
-
42,804
23,708
25,758
2.1
2.1
5.9
16.4
34.2
12.3
1.0
1.0
3.0
8.3
-
-
RBL Bank
Neutral
518
-
21,411
2,309
2,888
2.6
2.5
16.4
19.1
31.7
27.2
4.0
3.5
13.3
13.8
-
-
Repco Home Finance
Buy
614
825
3,840
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
31
-
5,648
3,195
3,567
3.0
3.1
3.0
3.8
10.4
8.2
1.0
0.9
10.5
11.9
-
-
St Bk of India
Neutral
329
-
283,951
105,827
121,056
2.4
2.5
16.1
25.6
20.4
12.9
1.6
1.5
6.6
9.9
-
-
Union Bank
Neutral
176
-
12,814
14,650
16,225
2.3
2.3
23.1
32.5
7.6
5.4
0.6
0.5
7.1
9.2
-
-
Yes Bank
Neutral
320
-
73,284
11,088
13,138
3.0
2.9
84.0
99.3
3.8
3.2
0.6
0.5
16.3
16.8
-
-
FMCG
Akzo Nobel India
Neutral
1,840
-
8,825
3,164
3,607
13.8
13.7
58.6
67.9
31.4
27.1
7.7
6.8
24.5
25.1
2.6
2.3
Asian Paints
Neutral
1,162
-
111,497
17,603
20,615
18.6
18.6
2,128.9
2,543.3
0.6
0.5
11.5
9.7
28.0
28.9
6.1
5.2
Britannia
Neutral
4,650
-
55,832
9,690
11,278
14.8
15.4
84.0
101.0
55.4
46.0
20.2
16.0
40.6
39.0
5.7
4.9
Colgate
Neutral
1,044
-
28,394
4,420
5,074
24.9
25.3
28.6
32.8
36.5
31.8
14.4
11.6
43.8
40.5
6.2
5.3
Dabur India
Neutral
343
-
60,420
8,346
9,344
19.6
19.9
7.8
9.0
44.0
38.1
8.9
8.0
25.2
24.8
6.8
6.0
GlaxoSmith Con*
Neutral
5,510
-
23,171
5,072
5,760
18.2
18.4
176.3
199.2
31.3
27.7
6.6
6.0
21.2
21.7
3.9
3.4
Godrej Consumer
Neutral
970
-
66,109
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
1,240
-
268,428
37,077
41,508
20.3
21.8
5,189.9
6,318.5
0.2
0.2
37.8
32.3
74.8
82.0
7.1
6.3
ITC
Neutral
265
-
322,535
44,588
49,853
37.0
37.3
9.6
11.0
27.6
24.1
6.8
6.4
25.1
27.3
6.7
6.0
Marico
Neutral
314
-
40,463
6,788
7,766
18.5
19.2
7.1
8.5
44.2
36.9
15.5
13.2
36.9
38.0
5.8
5.1
Nestle*
Neutral
7,597
-
73,250
10,083
11,182
20.0
20.9
119.7
141.3
63.5
53.8
223.7
204.5
36.7
39.8
6.9
6.2
Tata Global
Neutral
234
-
14,775
7,121
7,641
11.9
12.3
6.9
8.0
33.9
29.3
2.3
2.2
6.8
7.2
1.9
1.7
Procter & Gamble
Neutral
8,848
-
28,720
3,034
3,579
27.1
27.7
167.7
198.8
52.8
44.5
14.2
12.2
28.8
29.5
8.9
7.4
Hygiene
IT
HCL Tech^
Buy
849
1,014
121,080
50,009
54,608
22.1
22.1
62.8
67.6
13.5
12.6
3.0
2.6
22.4
20.6
2.1
1.8
Infosys
Buy
929
1,120
213,299
70,333
75,960
26.0
26.0
61.7
65.9
15.1
14.1
2.9
2.6
18.9
18.7
2.4
2.2
TCS
Neutral
2,667
-
525,513
123,384
134,488
26.1
26.1
133.2
143.7
20.0
18.6
5.5
5.2
27.6
27.8
3.9
3.5
Tech Mahindra
Buy
460
533
44,916
31,015
33,496
15.0
15.0
35.6
38.1
12.9
12.1
2.2
2.1
17.0
16.3
1.2
1.1
Stock Watch
November 07, 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
300
-
145,757
54,164
56,544
22.3
22.3
18.8
19.5
15.9
15.4
2.5
2.2
15.0
13.6
1.9
1.7
Media
D B Corp
Neutral
374
-
6,882
2,404
2,625
30.5
31.5
23.7
26.9
15.8
13.9
3.7
3.2
23.5
22.8
2.7
2.5
HT Media
Neutral
102
-
2,367
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
174
225
5,685
2,541
2,835
28.5
28.7
12.7
14.1
13.7
12.3
2.8
2.5
21.3
21.4
2.1
1.8
Sun TV Network
Neutral
904
-
35,627
3,238
3,789
51.9
55.1
30.9
38.0
29.3
23.8
8.3
7.3
30.0
31.0
10.5
8.9
Hindustan Media
Neutral
242
-
1,778
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
Buy
366
435
2,184
667
727
27.7
27.7
18.6
20.1
19.7
18.3
3.1
3.1
15.6
17.3
2.8
2.6
Music Broadcast Limited Accumulate
383
434
2,185
271
317
91.0
109.0
6.0
10.0
63.8
38.3
4.0
3.6
6.5
9.3
7.7
6.3
Metals & Mining
Coal India
Neutral
287
-
178,215
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
323
-
136,605
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
273
-
61,206
102,350
105,355
13.5
14.5
21.5
24.5
12.7
11.1
1.8
1.5
15.0
15.2
1.2
1.1
JSW Steel
Neutral
267
-
64,649
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
131
-
41,400
10,209
11,450
47.0
48.0
11.1
12.1
11.8
10.8
1.6
1.5
-
-
3.6
3.2
SAIL
Neutral
84
-
34,610
54,100
63,555
3.0
10.0
(10.0)
1.5
55.9
1.1
1.1
-
-
1.6
1.4
Vedanta
Neutral
339
-
125,976
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
-
68,835
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
466
-
78,832
53,115
52,344
14.2
15.3
30.0
31.1
15.5
15.0
1.9
1.8
-
-
1.2
1.2
ONGC
Neutral
199
-
254,932
83,111
84,934
44.2
44.9
16.4
16.9
12.1
11.8
1.5
1.4
-
-
2.9
2.9
Indian Oil Corp
Neutral
411
-
199,408
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
934
-
607,748
257,711
267,438
17.0
18.2
89.1
89.5
10.5
10.4
1.0
0.9
-
-
2.0
1.9
Pharmaceuticals
Alembic Pharma
Buy
513
600
9,661
3,903
4,584
18.2
19.2
21.8
27.2
23.5
18.8
4.3
3.6
19.8
20.6
2.5
2.1
Alkem Laboratories Ltd
Accumulate
1,958
2,079
23,407
6,320
7,341
17.5
19.8
72.7
96.6
26.9
20.3
4.8
4.0
16.7
18.7
3.6
3.1
Aurobindo Pharma
Neutral
797
-
46,701
17,086
19,478
22.1
22.0
44.7
51.4
17.8
15.5
4.0
3.2
24.7
22.7
2.8
2.5
Aventis*
Neutral
4,597
-
10,587
2,508
2,862
16.8
16.8
139.9
153.8
32.9
29.9
4.8
3.9
23.5
25.8
3.8
3.2
Cadila Healthcare
Sell
503
426
51,484
11,584
13,228
20.3
20.4
18.7
21.3
26.9
23.6
6.0
4.9
24.6
22.9
4.3
3.7
Cipla
Sell
655
458
52,739
16,619
19,437
15.4
16.2
19.7
24.3
33.3
27.0
3.8
3.4
12.0
13.2
3.3
2.8
Dr Reddy's
Neutral
2,395
-
39,703
15,844
17,973
17.6
18.2
91.7
111.0
26.1
21.6
3.0
2.7
11.9
13.0
2.7
2.4
GSK Pharma*
Neutral
2,663
-
22,557
3,260
3,651
15.0
18.0
46.1
58.6
57.8
45.4
11.9
12.2
20.0
26.5
6.8
6.2
Indoco Remedies
Sell
265
153
2,439
1,154
1,310
14.9
14.9
11.3
12.7
23.4
20.8
3.3
2.9
15.0
15.0
2.2
1.9
Stock Watch
November 07, 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
526
-
6,635
3,593
4,022
14.5
15.5
19.4
25.2
27.1
20.9
2.5
2.2
9.5
11.2
1.9
1.7
Lupin
Buy
1,035
1,467
46,747
18,657
21,289
21.3
23.3
52.8
66.7
19.6
15.5
3.0
2.5
16.3
17.5
2.5
2.1
Natco Pharma
Accumulate
959
1,057
16,712
1,886
2,016
32.3
29.5
23.2
22.0
41.4
43.5
8.7
7.7
20.9
17.6
8.7
8.1
Sun Pharma
Neutral
541
-
129,895
32,899
36,451
26.9
25.4
31.6
32.3
17.1
16.8
3.0
2.6
18.7
18.8
3.6
3.1
Syngene International
Accumulate
503
557
10,064
1,402
1,823
32.8
36.0
15.9
20.7
31.7
24.4
5.9
4.9
18.7
20.0
7.2
5.5
Power
Tata Power
Neutral
85
-
23,112
32,547
33,806
20.5
20.5
4.7
5.4
18.2
16.0
1.7
1.5
10.5
10.5
1.7
1.6
NTPC
Neutral
179
-
147,800
86,070
101,246
28.3
30.7
12.9
16.2
13.9
11.1
1.4
1.3
10.6
12.4
3.1
2.8
Power Grid
Accumulate
211
223
110,256
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
299
-
11,205
4,607
5,146
21.0
22.2
7.9
9.8
37.8
30.5
2.3
2.2
10.3
12.0
3.6
3.3
MLIFE
Buy
443
522
2,272
487
590
12.3
17.8
21.0
31.2
21.1
14.2
1.1
1.0
5.2
7.4
3.4
2.8
Telecom
Bharti Airtel
Neutral
533
-
212,961
97,903
105,233
36.0
36.3
9.3
11.1
57.3
48.2
2.8
2.6
5.0
5.6
3.1
2.8
Idea Cellular
Neutral
101
-
36,303
35,012
37,689
27.1
27.7
(4.4)
(2.7)
1.6
1.6
(6.8)
(4.6)
2.3
2.1
zOthers
Abbott India
Neutral
4,376
-
9,298
3,244
3,723
14.9
16.1
167.5
209.4
26.1
20.9
5.8
4.8
23.7
24.8
2.5
2.1
Asian Granito
Buy
493
570
1,482
1,169
1,286
12.5
12.5
16.0
19.7
30.8
25.0
3.3
2.9
10.7
11.6
1.5
1.3
Bajaj Electricals
Neutral
393
-
3,989
4,646
5,301
6.7
7.6
16.1
22.3
24.4
17.6
4.0
3.4
16.4
19.2
0.9
0.8
Banco Products (India)
Neutral
219
-
1,563
1,530
1,695
13.2
12.7
19.0
20.0
11.5
10.9
1.8
1.6
0.2
0.2
0.9
103.5
Coffee Day Enterprises
Neutral
221
-
4,553
3,494
3,913
17.4
18.0
4.8
5.7
-
38.8
2.0
1.9
-
0.1
1.8
1.5
Ltd
Elecon Engineering
Neutral
78
-
874
171
201
15.0
16.2
36.0
43.0
2.2
1.8
0.2
0.2
0.1
0.1
4.5
3.8
Garware Wall Ropes
Neutral
903
-
1,975
928
1,003
15.2
15.2
39.4
43.2
22.9
20.9
3.8
3.2
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
2,390
-
6,500
2,355
2,715
10.3
10.8
49.0
60.9
48.8
39.3
11.4
9.0
0.2
0.2
2.8
2.4
HSIL
Neutral
436
-
3,152
2,240
2,670
14.6
15.0
17.0
22.0
25.7
19.8
2.1
2.0
0.1
0.1
1.6
1.3
Interglobe Aviation
Neutral
1,242
-
44,928
22,570
27,955
14.2
15.0
63.6
81.8
19.6
15.2
10.3
8.7
0.5
0.6
1.7
1.3
Jyothy Laboratories
Neutral
391
-
7,097
1,781
2,044
14.1
15.0
9.4
10.5
41.8
37.2
8.9
8.4
0.2
0.2
4.2
3.6
Linc Pen & Plastics
Neutral
247
-
365
420
462
9.3
9.3
15.3
17.1
16.1
14.4
2.7
2.8
16.9
19.5
0.9
0.8
M M Forgings
Neutral
851
-
1,028
542
642
20.1
21.0
41.6
56.8
20.5
15.0
2.8
2.4
0.1
0.2
2.3
2.0
Mirza International
Neutral
162
-
1,949
1,148
1,285
18.0
18.0
8.0
9.4
20.2
17.3
3.3
2.8
16.3
16.1
1.9
1.6
Navkar Corporation
Buy
192
265
2,740
561
617
41.5
41.5
11.5
12.7
16.7
15.1
1.8
1.6
10.5
10.4
5.6
4.8
Nilkamal
Neutral
1,629
-
2,431
2,317
2,525
11.4
11.1
96.0
105.0
17.0
15.5
2.9
2.5
0.2
0.2
1.0
0.9
Stock Watch
November 07, 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
271
-
2,275
1,987
2,379
7.6
9.0
12.4
18.3
21.8
14.8
3.1
2.7
8.2
13.2
1.3
1.1
Radico Khaitan
Neutral
212
-
2,827
1,811
1,992
13.2
13.2
8.1
8.8
26.2
24.1
2.6
2.9
10.1
12.0
1.9
1.7
Relaxo Footwears
Neutral
574
-
6,895
1,981
2,310
13.7
14.5
12.0
15.5
47.8
37.0
9.3
7.5
0.2
0.2
3.5
3.0
Siyaram Silk Mills
Accumulate
601
650
2,815
1,769
1,981
12.7
12.7
22.6
26.2
26.5
22.9
4.1
3.6
15.5
15.5
1.8
1.6
Styrolution ABS India* Neutral
950
-
1,671
1,800
1,980
8.0
8.1
42.0
46.2
22.6
20.6
2.5
2.3
0.1
0.1
1.0
1.0
Surya Roshni
Neutral
379
-
1,659
4,870
5,320
7.7
7.8
22.8
28.1
16.6
13.5
2.2
1.9
0.1
0.1
0.6
0.5
TVS Srichakra
Neutral
3,189
-
2,441
2,729
2,893
12.7
12.5
248.5
265.0
12.8
12.0
3.6
3.0
0.3
0.3
0.9
0.8
Visaka Industries
Neutral
676
-
1,074
1,104
1,214
12.1
12.6
31.0
37.9
21.8
17.9
2.7
2.4
0.1
0.1
1.2
1.1
VIP Industries
Neutral
287
-
4,061
1,450
1,693
10.4
10.5
6.5
7.8
43.9
36.8
9.3
8.1
21.1
22.1
2.8
2.4
Navin Fluorine
Neutral
725
-
3,574
945
1,154
22.4
22.6
28.7
34.8
25.3
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 06, 2017
Market Outlook
November 07, 2017
Research Team Tel: 022 - 39357800
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