Market Outlook

December 09, 2016

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian market is expected to open on a positive note tracking the SGX Nifty and

BSE Sensex

1.7

457

26,694

strong global markets.

Nifty

1.8

145

8,247

Following the rally seen in the previous session stocks saw some further upside

Mid Cap

1.5

184

12,508

during the day on Thursday and the US markets continued it upward move. With the

Small Cap

1.3

154

12,256

continued strength on Wall Street, all three of the major averages reached new

Bankex

1.5

321

21,170

record closing highs. The higher close on Wall Street came on the heels of the

European Central Bank’s highly anticipated monetary policy announcement.

Global Indices

Chg (%)

(Pts)

(Close)

The European markets were largely flat in early trade on Thursday, ahead of today’s

Dow Jones

0.3

19,615

announcement from the European Central Bank. However, they broke out higher

after the central bank surprised the markets. The ECB announced that bond

Nasdaq

0.4

5,417

purchases will be extended till the end of next year, which is longer than expected.

FTSE

0.4

6,932

After reacting negatively to the RBI’s policy, the Indian markets looked back at

Nikkei

1.5

269

18,765

global cues and witnessed strong buying interest across board. Rate sensitive stocks

Hang Seng

0.3

22,862

which had witnessed selling the previous day started buying interest. With positive

Shanghai Com

(0.2)

(7)

3,215

announcement from the ECB the Indian markets could continue to see its up move

for some time.

Advances / Declines

BSE

NSE

News Analysis

Advances

1,839

1259

 Crompton Greaves terminates T&D deal

Declines

818

341

Detailed analysis on Pg2

Unchanged

167

Investor’s Ready Reckoner

Volumes (` Cr)

Key Domestic & Global Indicators

BSE

2,447

Stock Watch: Latest investment recommendations on 150+ stocks

NSE

16,045

Refer Pg5 onwards

Top Picks

Net Inflows (` Cr)

Net

Mtd

Ytd

CMP

Target

Upside

Company

Sector

Rating

(`)

(%)

FII

698

143

(370)

Amara Raja Batt. Auto & Auto Ancill.

Buy

929

1,167

25.6

MFs

(174)

30,771

Alkem Laboratories Pharmaceuticals

Buy

1,680

1,989

18.4

HCL Tech

Buy

795

1,000

25.8

Top Gainers

Price (`)

Chg (%)

Power Grid Corp. Power

Buy

186

223

20.1

Fincables

426

6.7

Navkar Corp.

Others

Buy

177

265

49.9

More Top Picks on Pg3

Beml

919

6.4

Pageind

13,820

6.2

Key Upcoming Events

Fsl

6.0

Consensus

Date

Region

Event Description

Reading

Expectations

Havells

351

5.9

Dec 9 India

Exports YoY%

9.6

Dec 9 Euro Zone ECB announces interest rates

Top Losers

Price (`)

Chg (%)

Dec 9 UK

CPI (YoY)

0.9

Polaris

143

(11.1)

Dec 12 China

Consumer Price Index (YoY)

2.1

2.2

Dec 13 India

Industrial Production YoY

0.7

Crompgreav

(5.9)

More Events on Pg4

Ipcalab

541

(3.3)

Nationalum

(3.0)

Network18

(2.8)

As on December 08, 2016

www.angelbroking.com

Market Outlook

December 09, 2016

News Analysis

Crompton greaves terminates T&D deal

Crompton greaves has said that its deal with Pauwels Spaco Ltd- an SPV of first

reserve (parties) for sale of its power business in Europe, North America and

Indonesia has been terminated. The company has however said it will continue to

explore alternative geography/ product wise options for sale of its international

power business. It also has mentioned that it will continue to look for strategic

initiatives for improving overall operational efficiency of the international power

business.

However, the company also clarified that it continues to progress with sale of the

B2B Automation Business in Spain, UK, Ireland, France and India at and Enterprise

Value of Euro 120 Mn as communicated on November 7,2016 and towards this

has made substantial progress towards completion, which will enhance share

holders value.

Economic and Political News

 Government announces various incentive on digital payment

 Hope fades for new tax regime, GST needs to be deferred says Amit Mitra

of TMC

 CRISIL downgrades outlook for TN Govt owned power units to negative

 Rising NPAs to put pressure on bank rating

Corporate News

 Airtel & Idea unveil free voice calling, data benefit plan to take on RJio.

 GMR Infra’s net loss widens to `700.3cr

www.angelbroking.com

Market Outlook

December 09, 2016

Top Picks ★★★★★

Large Cap

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

To outpace battery industry growth due to better

Amara Raja Batteries

15,873

929

1,167

25.6

technological products leading to market share gains in

both the automotive OEM and replacement segments.

Strong growth in domestic business due to its leadership in

Alkem Laboratories

20,087

1,680

1,989

18.4

acute therapeutic segment. Alkem expects to launch more

products in USA, which bodes for its international business.

The stock is trading at attractive valuations and is factoring

HCL Tech

1,12,176

795

1,000

25.8

all the bad news.

Back on the growth trend; expect a long term growth of 14%

Infosys

2,26,192

985

1,249

26.8

to be a US$20bn in FY2020.

Strong order backlog and improvement in execution would

Larsen & Tourbo

1,27,396

1,367

1,634

19.5

trigger the growth for the L&T

One of the largest pharma companies with strong

international presence. It has a rich pipeline of ANDAs

Lupin

68,667

1,523

1,809

18.8

which is also one of the largest among the generic

companies.

Going forward, we expect the company to report strong

Power Grid Corporation

97,124

186

223

20.1

top-line CAGR of ~16% and bottom-line CAGR of ~19%

over FY16-18 on back of strong capitalization guidance

Source: Company, Angel Research

Mid Cap

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

We expect the company would report strong profitability

Asian Granito

640

213

351

64.9

owing to better product mix, higher B2C sales and

amalgamation synergy.

Among the top 4 players in the consumer durables segment.

Bajaj Electricals

2,248

223

274

23.0

Improved profitability backed by turn around in E&P

segment. Strong order book lends earnings visibility.

Favourable outlook for AC industry augurs well for Cooling

Blue Star

4,487

471

634

34.8

products business which is outgrowing the market. EMPPAC

division's is likely to turn around on improving economy

With a focus on the low and medium income (LMI)

Dewan Housing Finance

7,967

255

350

37.5

consumer 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

5,378

160

235

46.6

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

5,593

171

225

31.5

radio business (Radio City) would also boost the company's

revenue growth.

Speedier execution and speedier sales, strong revenue

Mahindra Lifespace

1,471

358

522

45.6

visibilty in short-to-long run, attractive valuations

We expect the company to report strong growth on back of

healthy growth in domestic branded sales (owing to

Mirza International

1,016

107

26.7

aggressive ad spend and addition in the number of EBOs &

multi-brand outlets [MBOs]) and healthy export revenues.

Massive capacity expansion along with rail advantage at

Navkar Corporation

2,521

177

265

49.9

ICD as well CFS augurs well for the company.

Strong brands and distribution network would boost growth

Siyaram Silk Mills

1,153

1,230

1,605

30.5

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

1,715

288

385

33.9

and anticipated growth in ad spends by corporate to benefit

the stock.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

December 09, 2016

Key Upcoming Events

Global economic events release calendar

Bloomberg Data

Date

Time

Country

Event Description

Unit

Period

Last Reported

Estimated

Dec 09, 2016

6:15 PM

Euro Zone ECB announces interest rates

Dec 8

India

Exports YoY%

% Change

Nov

9.59

3:00 PM

UK CPI (YoY)

% Change

Nov

0.90

Dec 12, 2016

7:00 AM

China Consumer Price Index (YoY)

% Change

Nov

2.10

2.20

Dec 13, 2016

5:30 PM

India

Industrial Production YoY

% Change

Oct

0.70

7:30 AM

China Industrial Production (YoY)

% Change

Nov

6.10

Dec 14, 2016

3:00 PM

UK Jobless claims change

% Change

Nov

9.80

7:45 PM

Industrial Production

Nov

0.04

(0.20)

Producer Price Index (mom)

% Change

Nov

0.40

12:00 PM

India

Monthly Wholesale Prices YoY%

% Change

Nov

3.39

Dec 15, 2016

2:00 PM

Germany PMI Services

Value

Dec P

55.10

2:00 PM

Germany PMI Manufacturing

Value

Dec P

54.30

7:00 PM

Consumer price index (mom)

% Change

Nov

0.40

0.20

5:30 PM

UK BOE Announces rates

% Ratio

Dec 15

0.25

7:00 PM

Housing Starts

Thousands

Nov

1,323.00

1,233.00

Dec 16, 2016

12:30 AM

FOMC rate decision

Dec 14

0.50

0.75

7:00 PM

Building permits

Thousands

Nov

1,260.00

1,230.00

3:30 PM

Euro Zone Euro-Zone CPI (YoY)

Nov F

0.60

Dec 21, 2016

8:30 PM

Euro Zone Euro-Zone Consumer Confidence

Value

Dec A

(6.10)

8:30 PM

Existing home sales

Million

Nov

5.60

Dec 22, 2016

7:00 PM

GDP Qoq (Annualised)

% Change

3Q T

3.20

3.30

Dec 23, 2016

3:00 PM

UK GDP (YoY)

% Change

3Q F

2.30

8:30 PM

New home sales

Thousands

Nov

563.00

Dec 27, 2016

8:30 PM

Consumer Confidence

S.A./ 1985=100

Dec

107.10

Jan 01, 2017

3:00 PM

UK PMI Manufacturing

Value

Dec

53.40

Jan 03, 2017

2:25 PM

Germany Unemployment change (000's)

Thousands

Dec

(5.00)

7:00 PM

Change in Nonfarm payrolls

Thousands

Dec

178.00

Source: Bloomberg, Angel Research

www.angelbroking.com

Stock Watch

December 09, 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

205

3,986

1,937

2,164

13.3

14.3

9.0

11.0

22.8

18.6

4.0

3.5

18.4

19.8

2.1

1.8

United Phosphorus

Neutral

700

35,489

15,176

17,604

18.5

37.4

44.6

18.7

15.7

3.7

3.0

21.4

21.2

2.5

2.1

Auto & Auto Ancillary

Ashok Leyland

Buy

111

22,226

22,407

26,022

10.6

5.2

6.4

15.0

12.2

3.4

2.9

23.6

24.7

1.1

0.9

Bajaj Auto

Neutral

2,774

80,263

25,093

27,891

19.5

19.2

143.9

162.5

19.3

17.1

5.4

4.7

30.3

29.4

2.9

2.6

Bharat Forge

Neutral

964

22,445

7,726

8,713

20.5

21.2

35.3

42.7

27.3

22.6

5.0

4.6

18.9

20.1

3.0

2.6

Eicher Motors

Neutral

23,250

63,149

16,583

20,447

17.5

18.0

598.0

745.2

38.9

31.2

13.3

10.1

41.2

38.3

3.6

2.9

Gabriel India

Buy

108

130

1,551

1,544

1,715

9.0

9.3

5.4

6.3

20.0

17.1

3.8

3.3

18.9

19.5

1.0

0.8

Hero Motocorp

Accumulate

3,309

3,541

66,076

30,958

34,139

15.7

193.6

208.3

17.1

15.9

6.7

5.5

34.2

30.5

2.0

1.8

Jamna Auto Industries Neutral

179

1,430

1,486

1,620

9.8

9.9

15.0

17.2

11.9

10.4

2.6

2.2

21.8

21.3

1.0

0.9

L G Balakrishnan & Bros Neutral

601

943

1,302

1,432

11.6

11.9

43.7

53.0

13.8

11.3

1.9

1.8

13.8

14.2

0.8

0.7

Mahindra and Mahindra Neutral

1,206

74,925

46,534

53,077

11.6

11.7

67.3

78.1

17.9

15.5

2.9

2.5

15.4

15.8

1.6

1.4

Maruti

Accumulate

5,241

6,006

158,320

68,057

82,958

15.8

15.5

212.1

261.2

24.7

20.1

4.9

4.1

19.8

20.3

2.0

1.6

Minda Industries

Neutral

305

2,420

2,728

3,042

9.0

9.1

68.2

86.2

4.5

3.5

1.0

0.8

23.8

24.3

0.9

0.8

Motherson Sumi

Neutral

330

46,242

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

1,027

813

511

562

11.3

11.5

28.1

30.9

36.5

33.2

5.6

5.1

15.3

15.0

1.7

1.6

Setco Automotive

Neutral

491

741

837

13.0

15.2

17.0

2.4

2.2

0.4

15.8

16.3

1.0

Tata Motors

Neutral

461

133,187

300,209

338,549

8.9

8.4

42.7

54.3

10.8

8.5

1.7

1.5

15.6

17.2

0.6

0.5

TVS Motor

Neutral

364

17,286

13,390

15,948

6.9

7.1

12.8

16.5

28.5

22.0

7.1

5.6

26.3

27.2

1.3

1.1

Amara Raja Batteries

Buy

929

1,167

15,873

5,504

6,605

17.6

17.5

33.4

40.9

27.8

22.7

6.1

5.0

22.1

22.0

2.9

2.4

Exide Industries

Neutral

179

15,215

7,439

8,307

15.0

8.1

9.3

22.1

19.3

3.1

2.8

14.3

16.7

1.7

1.5

Apollo Tyres

Buy

195

235

9,916

12,877

14,504

14.3

13.9

21.4

23.0

9.1

8.5

1.4

1.2

16.4

15.2

0.9

Ceat

Accumulate

1,266

1,450

5,123

7,524

8,624

13.0

12.7

131.1

144.3

9.7

8.8

1.8

1.5

19.8

18.6

0.8

0.7

JK Tyres

Neutral

121

2,747

7,455

8,056

15.0

21.8

24.5

5.6

4.9

1.2

1.0

22.8

21.3

0.5

0.4

Swaraj Engines

Neutral

1,365

1,695

660

810

15.2

16.4

54.5

72.8

25.1

18.8

7.8

7.1

31.5

39.2

2.4

1.9

Subros

Neutral

167

999

1,488

1,681

11.7

11.9

6.4

7.2

26.0

23.2

2.8

2.5

10.8

11.4

0.9

0.8

Indag Rubber

Neutral

175

460

286

326

19.8

16.8

11.7

13.3

15.0

13.2

2.5

2.4

17.8

17.1

1.3

1.1

Capital Goods

ACE

Neutral

488

709

814

4.1

4.6

1.4

2.1

35.2

23.5

1.5

1.4

4.4

6.0

0.8

0.7

BEML

Neutral

919

3,828

3,451

4,055

6.3

9.2

31.4

57.9

29.3

15.9

1.8

1.6

6.3

10.9

1.2

1.0

Bharat Electronics

Neutral

1,480

33,063

8,137

9,169

16.8

17.2

58.7

62.5

25.2

23.7

3.9

3.5

44.6

46.3

3.0

2.7

www.angelbroking.com

Stock Watch

December 09, 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

Buy

323

407

10,702

6,511

7,514

7.9

8.7

12.9

16.3

25.1

19.8

4.5

4.0

16.7

18.5

1.4

1.2

BGR Energy

Neutral

117

842

16,567

33,848

6.0

5.6

7.8

5.9

15.0

19.8

0.9

0.8

4.7

4.2

0.2

0.1

BHEL

Neutral

129

31,574

28,797

34,742

2.8

2.3

6.9

56.1

18.7

1.0

0.9

1.3

4.8

0.8

0.5

Blue Star

Buy

471

634

4,487

4,283

5,077

5.9

7.3

14.9

22.1

31.6

21.3

6.1

5.2

20.4

26.4

1.1

0.9

Crompton Greaves

Neutral

3,886

5,777

6,120

5.9

7.0

3.3

4.5

18.8

13.8

0.8

4.4

5.9

0.6

0.5

Greaves Cotton

Neutral

127

3,099

1,755

1,881

16.8

16.9

7.8

8.5

16.3

14.9

3.3

3.0

20.6

20.9

1.5

1.3

Inox Wind

Neutral

201

4,454

5,605

6,267

15.7

16.4

24.8

30.0

8.1

6.7

2.3

1.7

25.9

24.4

0.8

0.7

KEC International

Neutral

143

3,684

9,294

10,186

7.9

8.1

9.9

11.9

14.5

12.0

2.1

1.8

15.6

16.3

0.6

Thermax

Neutral

825

9,826

5,421

5,940

7.3

25.7

30.2

32.1

27.3

3.9

3.6

12.2

13.1

1.7

1.6

VATech Wabag

Buy

490

681

2,672

3,136

3,845

8.9

9.1

26.0

35.9

18.9

13.7

2.4

2.0

13.4

15.9

0.8

0.6

Cement

ACC

Neutral

1,359

25,516

11,225

13,172

13.2

16.9

44.5

75.5

30.5

18.0

2.9

2.7

11.2

14.2

2.3

1.9

Ambuja Cements

Neutral

214

42,394

9,350

10,979

18.2

22.5

5.8

9.5

36.8

22.5

3.1

2.8

10.2

12.5

4.5

3.9

India Cements

Neutral

114

3,513

4,364

4,997

18.5

19.2

7.9

11.3

14.5

10.1

1.0

8.0

8.5

1.6

1.4

JK Cement

Neutral

737

5,156

4,398

5,173

15.5

17.5

31.2

55.5

23.6

13.3

2.8

2.5

12.0

15.5

1.7

1.4

J K Lakshmi Cement

Buy

380

565

4,469

2,913

3,412

14.5

19.5

7.5

22.5

50.6

16.9

3.1

2.6

12.5

18.0

2.1

1.8

Orient Cement

Buy

131

215

2,683

2,114

2,558

18.5

20.5

8.1

11.3

16.2

11.6

2.4

2.0

9.0

14.0

1.9

1.5

UltraTech Cement

Neutral

3,596

98,689

25,768

30,385

21.0

23.5

111.0

160.0

32.4

22.5

4.1

3.6

13.5

15.8

3.9

3.3

Construction

ITNL

Neutral

105

3,446

8,946

10,017

31.0

31.6

8.1

9.1

12.9

11.5

0.5

4.2

5.0

3.7

3.4

KNR Constructions

Neutral

785

2,209

1,385

1,673

14.7

14.0

41.2

48.5

19.1

16.2

3.6

3.1

14.9

15.2

1.7

1.4

Larsen & Toubro

Buy

1,367

1,634

127,396

111,017

124,908

11.0

61.1

66.7

22.4

20.5

2.7

2.5

13.1

12.9

2.2

2.0

Gujarat Pipavav Port

Neutral

138

6,671

705

788

52.2

51.7

5.0

5.6

27.6

24.6

2.7

2.4

11.2

9.1

7.7

Nagarjuna Const.

Neutral

4,472

8,842

9,775

9.1

8.8

5.3

6.4

15.2

12.6

1.2

1.1

8.2

9.1

0.7

0.6

PNC Infratech

Buy

107

143

2,740

2,350

2,904

13.1

13.2

9.0

8.8

11.9

12.1

0.4

15.9

13.9

1.3

1.0

Simplex Infra

Neutral

296

1,464

6,829

7,954

10.5

31.4

37.4

9.4

7.9

1.0

0.9

9.9

13.4

0.6

0.5

Power Mech Projects

Neutral

456

671

1,801

2,219

12.7

14.6

72.1

113.9

6.3

4.0

1.2

1.0

16.8

11.9

0.4

0.3

Sadbhav Engineering

Accumulate

275

298

4,715

3,598

4,140

10.3

10.6

9.0

11.9

30.5

23.1

3.2

2.8

9.9

11.9

1.6

1.4

NBCC

Neutral

235

14,106

7,428

9,549

7.9

8.6

8.2

11.0

28.7

21.4

1.4

1.1

28.2

28.7

1.6

1.2

MEP Infra

Neutral

595

1,877

1,943

30.6

29.8

3.0

4.2

12.2

8.7

5.9

4.0

0.6

1.7

1.5

SIPL

Neutral

3,142

1,036

1,252

65.5

66.2

(8.4)

(5.6)

3.3

3.8

(22.8)

(15.9)

11.3

9.4

www.angelbroking.com

Stock Watch

December 09, 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

306

10,314

1,725

1,935

16.0

19.1

11.4

13.9

26.9

22.0

3.7

3.6

13.4

15.3

4.9

4.4

Financials

Axis Bank

Buy

450

630

107,285

46,932

53,575

3.5

3.4

32.4

44.6

13.9

10.1

1.8

1.6

13.6

16.5

Bank of Baroda

Neutral

159

36,521

19,980

23,178

1.8

11.5

17.3

13.8

9.2

1.6

1.3

8.3

10.1

Canara Bank

Neutral

312

16,917

15,225

16,836

1.8

14.5

28.0

21.5

11.1

1.5

1.2

5.8

8.5

Dewan Housing Finance Buy

255

350

7,967

2,225

2,688

2.9

29.7

34.6

8.6

7.4

1.4

1.2

16.1

16.8

Equitas Holdings

Buy

160

235

5,378

939

1,281

11.7

11.5

5.8

8.2

27.7

19.6

2.4

2.1

10.9

11.5

Federal Bank

Neutral

12,079

9,353

10,623

2.9

4.4

5.8

16.0

12.1

1.5

1.4

9.5

11.0

HDFC

Neutral

1,287

203,494

11,475

13,450

3.4

45.3

52.5

28.4

24.5

5.5

4.8

20.2

20.5

HDFC Bank

Accumulate

1,200

1,350

303,784

46,097

55,433

4.5

58.4

68.0

20.6

17.7

3.6

3.0

18.8

18.6

ICICI Bank

Buy

262

315

152,578

42,800

44,686

3.1

3.3

18.0

21.9

14.6

12.0

2.0

1.8

11.1

12.3

Lakshmi Vilas Bank

Buy

147

174

2,645

3,339

3,799

2.7

2.8

11.0

14.0

13.4

10.5

1.4

1.3

11.2

12.7

LIC Housing Finance

Accumulate

568

630

28,655

3,712

4,293

2.6

2.5

39.0

46.0

14.6

12.3

2.7

2.3

19.9

20.1

Punjab Natl.Bank

Neutral

133

28,313

23,532

23,595

2.3

2.4

6.8

12.6

19.6

10.6

3.0

2.2

3.3

6.5

RBL Bank

Neutral

354

13,095

1,783

2,309

2.6

12.7

16.4

27.9

21.6

3.0

2.7

12.8

13.3

South Ind.Bank

Neutral

2,903

6,435

7,578

2.5

2.7

3.1

8.0

6.9

1.0

0.9

10.1

11.2

St Bk of India

Neutral

260

201,638

88,650

98,335

2.6

13.5

18.8

19.2

13.8

1.8

1.6

7.0

8.5

Union Bank

Neutral

142

9,734

13,450

14,925

2.3

25.5

34.5

5.6

4.1

0.8

0.7

7.5

10.2

Yes Bank

Neutral

1,213

51,071

8,978

11,281

3.3

3.4

74.0

90.0

16.4

13.5

3.1

2.6

17.0

17.2

FMCG

Asian Paints

Neutral

935

89,723

17,128

18,978

16.8

16.4

19.1

20.7

49.0

45.2

17.0

16.1

34.8

35.5

5.2

4.7

Britannia

Buy

3,037

3,626

36,431

9,594

11,011

14.6

14.9

80.3

94.0

37.8

32.3

15.6

12.0

41.2

3.7

3.1

Colgate

Accumulate

923

995

25,099

4,605

5,149

23.4

23.8

26.9

38.8

34.3

21.5

16.8

64.8

66.8

5.4

4.8

Dabur India

Accumulate

280

304

49,212

8,315

9,405

19.8

20.7

8.1

9.2

34.5

30.4

9.6

8.0

31.6

31.0

5.6

4.9

GlaxoSmith Con*

Neutral

5,001

21,033

4,350

4,823

21.2

21.4

179.2

196.5

27.9

25.5

7.4

6.3

27.1

26.8

4.2

3.7

Godrej Consumer

Neutral

1,477

50,293

10,235

11,428

18.4

18.6

41.1

44.2

35.9

33.4

8.0

6.7

24.9

24.8

5.0

4.4

HUL

Neutral

842

182,251

35,252

38,495

17.8

20.7

22.4

40.8

37.6

39.0

33.4

95.6

88.9

5.0

4.6

ITC

Buy

233

284

281,250

40,059

44,439

38.3

39.2

9.0

10.1

26.0

23.0

7.2

6.3

27.8

27.5

6.5

5.9

Marico

Buy

257

300

33,112

6,430

7,349

18.8

19.5

6.4

7.7

40.1

33.3

12.1

10.2

33.2

32.5

5.0

4.3

Nestle*

Neutral

6,319

60,927

10,073

11,807

20.7

21.5

124.8

154.2

50.6

41.0

20.8

18.7

34.8

36.7

5.9

5.0

Tata Global

Neutral

124

7,817

8,675

9,088

9.8

7.4

8.2

16.7

15.1

1.9

1.8

7.9

8.1

0.8

www.angelbroking.com

Stock Watch

December 09, 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

FMCG

Procter & Gamble

Accumulate

6,795

7,369

22,057

2,939

3,342

23.2

23.0

146.2

163.7

46.5

41.5

104.1

99.8

25.3

23.5

7.0

6.1

Hygiene

HCL Tech^

Buy

795

1,000

112,176

49,242

57,168

20.5

55.7

64.1

14.3

12.4

2.9

2.2

20.3

17.9

2.1

1.7

Infosys

Buy

985

1,249

226,192

68,350

77,326

27.0

62.5

69.4

15.8

14.2

3.4

3.1

21.3

21.6

2.8

2.4

TCS

Buy

2,197

2,620

432,883

119,025

133,308

27.6

131.2

145.5

16.7

15.1

5.4

5.0

32.4

33.1

3.4

3.0

Tech Mahindra

Buy

464

600

45,031

29,673

32,937

15.5

17.0

32.8

39.9

14.1

11.6

2.8

2.4

19.6

20.7

1.3

1.1

Wipro

Buy

459

590

111,534

55,440

60,430

18.1

35.9

39.9

12.8

11.5

2.3

2.1

19.0

19.3

1.7

1.6

Media

D B Corp

Neutral

356

6,542

2,297

2,590

27.4

28.2

21.0

23.4

17.0

15.2

4.0

3.4

23.7

23.1

2.6

2.3

HT Media

Neutral

1,696

2,693

2,991

12.6

12.9

7.9

9.0

9.2

8.1

0.8

0.7

7.8

8.3

0.2

0.1

Jagran Prakashan

Buy

171

225

5,593

2,355

2,635

28.0

10.8

12.5

15.8

13.7

3.4

3.0

21.7

2.4

2.1

Sun TV Network

Neutral

480

18,922

2,850

3,265

70.1

71.0

26.2

30.4

18.3

15.8

4.7

4.1

24.3

25.6

6.2

5.3

Hindustan Media

Neutral

256

1,880

1,016

1,138

24.3

25.2

27.3

30.1

9.4

8.5

1.8

1.6

16.2

15.8

1.2

1.0

Ventures

TV Today Network

Buy

288

385

1,715

637

743

27.5

18.4

21.4

15.7

13.5

2.7

2.3

17.4

17.2

2.3

1.9

Metals & Mining

Coal India

Neutral

312

197,197

84,638

94,297

21.4

22.3

24.5

27.1

12.7

11.5

5.3

5.1

42.6

46.0

1.8

1.7

Hind. Zinc

Neutral

284

119,872

14,252

18,465

55.9

48.3

15.8

21.5

18.0

13.2

2.9

2.6

17.0

20.7

8.4

6.5

Hindalco

Neutral

179

36,943

107,899

112,095

7.4

8.2

9.2

13.0

19.5

13.8

0.9

4.8

6.6

0.9

0.8

JSW Steel

Neutral

1,656

40,040

53,201

58,779

16.1

16.2

130.6

153.7

12.7

10.8

1.7

1.5

14.0

14.4

1.5

1.3

NMDC

Neutral

129

40,688

6,643

7,284

44.4

47.7

7.1

7.7

18.1

16.7

1.6

1.5

8.8

9.2

3.9

3.5

SAIL

Neutral

22,075

47,528

53,738

(0.7)

2.1

(1.9)

2.6

20.6

0.6

(1.6)

3.9

1.3

1.2

Vedanta

Neutral

243

72,027

71,744

81,944

19.2

21.7

13.4

20.1

18.1

12.1

1.6

1.4

8.4

11.3

1.4

1.1

Tata Steel

Neutral

432

41,913

121,374

121,856

7.2

8.4

18.6

34.3

23.2

12.6

1.5

1.3

6.1

10.1

1.0

Oil & Gas

Cairn India

Neutral

264

49,440

9,127

10,632

4.3

20.6

8.8

11.7

30.0

22.5

1.0

0.9

3.3

4.2

6.9

5.7

GAIL

Neutral

430

54,494

56,220

65,198

9.3

10.1

27.1

33.3

15.9

12.9

1.5

1.4

9.3

10.7

1.2

1.0

ONGC

Neutral

302

258,419

137,222

152,563

15.0

21.8

19.5

24.1

15.5

12.5

1.3

8.5

10.1

2.2

1.9

Indian Oil Corp

Neutral

307

148,906

373,359

428,656

5.9

5.5

54.0

59.3

5.7

5.2

0.9

0.8

16.0

15.6

0.6

0.5

Reliance Industries

Neutral

1,020

330,583

301,963

358,039

12.1

12.6

87.7

101.7

11.6

10.0

1.2

1.1

10.7

11.3

1.6

1.3

Pharmaceuticals

Alembic Pharma

Neutral

639

12,049

3,483

4,083

20.2

21.4

24.3

30.4

26.3

21.0

6.0

4.8

25.5

25.3

3.4

2.8

Alkem Laboratories Ltd

Buy

1,680

1,989

20,087

6,043

6,893

18.7

19.3

80.5

88.8

20.9

18.9

4.7

3.9

22.3

20.3

3.3

2.8

Aurobindo Pharma

Buy

722

877

42,264

15,720

18,078

23.7

41.4

47.3

17.5

15.3

4.5

3.6

29.6

26.1

2.9

2.5

Aventis*

Neutral

4,293

9,887

2,277

2,597

17.3

18.3

149.4

172.0

28.7

25.0

4.8

3.8

25.1

28.8

4.0

3.3

www.angelbroking.com

Stock Watch

December 09, 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

Cadila Healthcare

Neutral

395

40,417

10,429

12,318

22.6

22.0

16.9

19.2

23.4

20.6

6.0

4.8

28.5

25.7

3.9

3.2

Cipla

Sell

582

490

46,752

15,378

18,089

17.4

18.4

21.6

27.2

26.9

21.4

3.5

3.0

13.7

15.2

3.2

2.7

Dr Reddy's

Neutral

3,200

53,027

16,043

18,119

20.8

22.4

112.4

142.9

28.5

22.4

3.8

3.3

14.1

15.9

3.3

2.9

Dishman Pharma

Neutral

231

3,727

1,718

1,890

22.7

22.8

9.5

11.3

24.3

20.4

2.4

2.1

10.1

10.9

2.6

2.3

GSK Pharma*

Neutral

2,733

23,146

3,000

3,312

15.4

20.6

46.5

60.8

58.8

44.9

14.1

26.3

30.6

7.5

6.8

Indoco Remedies

Reduce

260

240

2,391

1,112

1,289

16.2

18.2

11.6

16.0

22.4

16.2

3.6

3.0

17.0

20.1

2.3

1.9

Ipca labs

Accumulate

541

613

6,826

3,303

3,799

15.3

17.3

19.7

31.3

27.5

2.7

2.5

9.1

9.4

2.2

1.9

Lupin

Buy

1,523

1,809

68,667

15,912

18,644

26.4

26.7

58.1

69.3

26.2

22.0

5.1

4.2

21.4

20.9

4.4

3.6

Sun Pharma

Buy

676

847

162,584

31,129

35,258

32.0

32.9

30.2

35.3

22.4

19.1

3.7

3.0

20.0

20.1

4.8

4.0

Power

Tata Power

Neutral

20,433

36,916

39,557

17.4

27.1

5.1

6.3

14.8

12.0

1.3

1.2

9.0

10.3

1.6

1.4

NTPC

Neutral

163

134,401

86,605

95,545

17.5

20.8

11.8

13.4

13.8

12.2

1.4

1.3

10.5

11.1

2.9

Power Grid

Buy

186

223

97,124

25,315

29,193

88.2

88.7

14.2

17.2

13.1

10.8

2.0

1.7

15.2

16.1

8.5

7.6

Real Estate

Prestige Estate

Buy

151

210

5,653

4,707

5,105

25.2

26.0

10.3

13.0

14.6

11.6

1.2

1.1

10.3

10.2

2.4

2.1

MLIFE

Buy

358

522

1,471

1,152

1,300

22.7

24.6

29.9

35.8

12.0

10.0

0.9

0.8

7.6

8.6

2.0

1.7

Telecom

Bharti Airtel

Neutral

332

132,594

105,086

114,808

34.5

34.7

12.2

16.4

27.2

20.2

1.8

1.7

6.8

8.4

2.2

1.9

Idea Cellular

Neutral

27,510

40,133

43,731

37.2

37.1

6.4

6.5

11.9

11.8

1.0

0.9

8.2

7.6

1.7

1.4

zOthers

Abbott India

Neutral

4,738

10,067

3,153

3,583

14.1

14.4

152.2

182.7

31.1

25.9

152.8

130.5

25.6

26.1

2.9

2.5

Asian Granito

Buy

213

351

640

1,071

1,182

12.1

12.4

12.7

16.0

16.7

13.3

1.6

1.4

9.5

10.7

0.9

0.8

Bajaj Electricals

Buy

223

274

2,248

4,801

5,351

5.7

6.2

10.4

13.7

21.4

16.3

2.6

2.4

12.4

14.5

0.5

0.4

Banco Products (India)

Neutral

195

1,392

1,353

1,471

12.3

12.4

14.5

16.3

13.4

11.9

18.5

16.7

14.5

14.6

1.0

103.8

Coffee Day Enterprises

Neutral

204

4,212

2,964

3,260

20.5

21.2

4.7

8.0

25.6

2.4

2.2

5.5

8.5

1.8

1.6

Ltd

Competent Automobiles Neutral

168

103

1,137

1,256

3.1

2.7

28.0

23.6

6.0

7.1

32.4

29.2

14.3

11.5

0.1

Elecon Engineering

Neutral

603

1,482

1,660

13.7

14.5

3.9

5.8

13.8

9.3

3.2

3.0

7.8

10.9

0.7

0.6

Finolex Cables

Neutral

426

6,514

2,883

3,115

12.0

12.1

14.2

18.6

30.0

22.9

16.0

13.9

15.8

14.6

2.0

1.8

Garware Wall Ropes

Neutral

615

1,346

873

938

14.3

35.2

37.5

17.5

16.4

3.1

2.6

17.5

15.9

1.5

1.3

Goodyear India*

Neutral

730

1,685

1,598

1,704

10.4

10.2

49.4

52.6

14.8

13.9

68.3

59.9

18.2

17.0

0.7

103.0

Hitachi

Neutral

1,356

3,687

2,081

2,433

8.8

8.9

33.4

39.9

40.6

34.0

32.8

27.3

22.1

21.4

1.8

1.5

HSIL

Neutral

292

2,114

2,384

2,515

15.8

16.3

15.3

19.4

19.1

15.1

19.0

16.3

7.8

9.3

1.1

1.0

Interglobe Aviation

Neutral

851

30,672

21,122

26,005

14.5

27.6

110.7

132.1

7.7

6.4

46.0

32.9

168.5

201.1

1.4

1.1

www.angelbroking.com

Stock Watch

December 09, 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

Jyothy Laboratories

Neutral

372

6,758

1,440

2,052

11.5

13.0

8.5

10.0

43.8

37.2

10.6

9.8

18.6

19.3

5.0

3.5

Kirloskar Engines India

Neutral

326

4,714

2,554

2,800

9.9

10.0

10.5

12.1

31.1

26.9

13.0

12.3

10.7

11.7

1.5

1.3

Ltd

Linc Pen & Plastics

Neutral

237

351

382

420

9.3

9.5

13.5

15.7

17.6

15.1

3.0

2.6

17.1

17.3

1.0

0.9

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

Manpasand Bever.

Neutral

590

3,376

836

1,087

19.6

19.4

16.9

23.8

34.9

24.8

4.2

3.7

12.0

14.8

3.8

2.8

Mirza International

Buy

107

1,016

987

1,106

18.0

6.5

7.6

12.9

11.1

2.1

1.8

15.9

15.7

1.2

1.1

MT Educare

Neutral

116

462

366

417

17.7

18.2

9.4

10.8

12.4

10.7

2.8

2.4

22.2

22.3

1.2

1.0

Narayana Hrudaya

Neutral

339

6,928

1,873

2,166

11.5

11.7

2.6

4.0

128.2

85.5

7.9

7.1

6.1

8.3

3.8

3.3

Navkar Corporation

Buy

177

265

2,521

369

561

42.9

42.3

7.2

11.5

24.5

15.4

1.8

1.6

7.4

10.5

7.8

5.2

Navneet Education

Neutral

109

2,606

1,062

1,147

24.0

6.1

6.6

18.0

16.5

3.7

3.3

20.6

19.8

2.5

2.3

Nilkamal

Neutral

1,363

2,034

1,995

2,165

10.7

10.4

69.8

80.6

19.5

16.9

77.9

67.6

16.6

16.5

1.0

0.9

Page Industries

Neutral

13,820

15,415

2,450

3,124

20.1

17.6

299.0

310.0

46.2

44.6

307.8

235.0

47.1

87.5

6.3

5.0

Parag Milk Foods

Neutral

267

2,249

1,919

2,231

9.3

9.6

9.5

12.9

28.3

20.7

4.4

3.6

15.5

17.5

1.3

1.1

Quick Heal

Neutral

285

1,994

408

495

27.3

27.0

7.7

8.8

36.8

32.4

3.4

9.3

10.6

4.0

3.3

Radico Khaitan

Buy

120

147

1,598

1,667

1,824

13.0

13.2

6.7

8.2

18.1

14.7

1.6

1.5

9.0

10.2

1.3

1.2

Relaxo Footwears

Neutral

413

4,953

2,085

2,469

9.2

8.2

7.6

8.0

54.6

51.9

21.2

18.1

17.9

18.8

2.5

2.1

S H Kelkar & Co.

Neutral

301

4,357

1,036

1,160

15.1

15.0

6.1

7.2

49.3

42.0

5.3

4.8

10.7

11.5

4.1

3.6

Siyaram Silk Mills

Accumulate

1,230

1,605

1,153

1,733

1,948

11.6

11.7

96.6

114.7

12.7

10.7

2.0

1.7

15.3

15.7

0.9

0.8

Styrolution ABS India*

Neutral

583

1,026

1,440

1,537

9.2

9.0

40.6

42.6

14.4

13.7

36.7

33.4

12.3

11.6

0.7

0.6

Surya Roshni

Neutral

193

846

3,342

3,625

7.8

7.5

17.3

19.8

11.2

9.8

21.2

17.0

10.5

10.8

0.5

Team Lease Serv.

Neutral

875

1,496

3,229

4,001

1.5

1.8

22.8

32.8

38.4

26.6

4.1

3.6

10.7

13.4

0.4

0.3

The Byke Hospitality

Neutral

167

668

287

384

20.5

7.6

10.7

21.9

15.6

4.6

3.7

20.7

23.5

2.3

1.7

Transport Corporation of

Neutral

169

1,294

2,671

2,911

8.5

8.8

13.9

15.7

12.2

10.8

1.7

1.5

13.7

13.8

0.6

0.5

India

TVS Srichakra

Neutral

3,499

2,679

2,304

2,614

13.7

13.8

231.1

266.6

15.1

13.1

393.2

309.6

33.9

29.3

1.2

1.0

UFO Moviez

Neutral

434

1,197

619

685

33.2

33.4

30.0

34.9

14.5

12.4

2.0

1.7

13.8

13.9

1.6

1.3

Visaka Industries

Neutral

193

306

1,051

1,138

10.3

10.4

21.0

23.1

9.2

8.3

24.7

23.1

9.0

9.2

0.6

0.5

VRL Logistics

Neutral

266

2,426

1,902

2,119

16.7

16.6

14.6

16.8

18.3

15.8

4.0

3.5

21.9

22.2

1.4

1.2

Wonderla Holidays

Neutral

329

1,858

287

355

38.0

40.0

11.3

14.2

29.1

23.2

4.2

3.7

21.4

23.9

6.2

5.0

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on December 08, 2016

www.angelbroking.com

Market Outlook

December 09, 2016

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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