Market Outlook

September 14, 2017

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian markets are likely to open flat tracking global indices and SGX Nifty.

BSE Sensex

0.1

32,186

After moving higher over the two previous sessions, stocks showed a lack of

Nifty

(0.1)

(14)

10,079

direction throughout the trading session and the US markets ended the day with a

marginal gain. The major averages spent the day bouncing back and forth across

Mid Cap

(0.7)

(110)

15,927

unchanged line. The choppy trading on Wall Street came as traders expressed some

Small Cap

(0.6)

(98)

16,520

uncertainty about the near term outlook for the markets following the recent

strength.

Bankex

0.2

27,950

The European markets ended Wednesday’s session with mixed results but were little

Global Indices

Chg (%)

(Pts)

(Close)

unchanged overall. Traders were cautious ahead of Thursday’s policy decision from

the Bank Of England. Investors are also keeping an eye on the progress on US

Dow Jones

0.2

139

22,158

President Donald Trumps tax reform bill.

Nasdaq

0.1

6,464

Indian markets ended on a choppy note on Wednesday after the news of higher

FTSE

(0.3)

(21)

7,380

retail inflation and lower IIP data. Industrial production grew by a subdued 1.2% as

Nikkei

(00.5

19,866

against 4.5% growth in July. However, the overall sentiment in the domestic markets

continue to remain positive.

Hang Seng

(0.3)

(78)

27,894

Shanghai Com

0.1

3,384

News Analysis

 BPCL to invest `1.08 trillion in 5 years, to focus on petrochemicals segment

Advances / Declines

BSE

NSE

Detailed analysis is on Pg2

Advances

1,988

1,603

Declines

1,638

1,081

Investor’s Ready Reckoner

Unchanged

159

Key Domestic & Global Indicators

Stock Watch: Latest investment recommendations on 150+ stocks

Volumes (` Cr)

Refer Pg7 onwards

BSE

3,572

Top Picks

NSE

29,176

CMP

Target

Upside

Company

Sector

Rating

(`)

(%)

Blue Star

Capital Goods

Accumulate

795

807

1.5

#Net Inflows (` Cr)

Net

Mtd

Ytd

Dewan Housing FinanceFinancials

Accumulate

552

610

10.5

FII

(1,233)

(2(5,184)

4142,10

Mahindra Lifespace

Real Estate

Buy

450

522

16.1

MFs

8365

4,2,255

1471,14

Navkar Corporation

Others

Buy

192

265

38.1

KEI Industries

Capital Goods

Buy

299

371

24.2

More Top Picks on Pg5

Top Gainers

Price (`)

Chg (%)

Rtnpower

196

5.8

Key Upcoming Events

Consensus

Rdel

5.5

Date

Region

Event Description

Reading

Expectations

Bomdyeing

159

5.0

Sep 14, 2017 China

Industrial Production (YoY)

6.40

6.60

Religare

4.9

Sep 14, 2017 US

Initial Jobless claims

298.00

300.00

Sep 14, 2017 India

Monthly Wholesale Prices YoY%

1.88

3.20

Tatapower

4.8

Sep 14, 2017 India

Imports YoY%

15.40

Sep 14, 2017 US

Consumer price index (mom)

0.10

0.30

Top Losers

Price (`)

Chg (%)

More Events on Pg7

Jublfood

1,322

(7.3)

Bpcl

500

(6.2)

Hindpetro

457

(5.1)

Welcorp

135

(4.4)

Ioc

416

(4.3)

#as on 13^th Sep, 2017

www.angelbroking.com

Market Outlook

September 14, 2017

News Analysis

BPCL to invest `1.08 trillion over the next five years to expand

operations

PSU giant BPCL intends to invest Rs 1.08 trillion over the next five years to expand

operations across its business segments. The company is bullish on the

petrochemical segments and plans to invest around Rs 45,000 cr in the business

over next five years. According to the management only 1% of the company’s

throughput is getting converted into petrochemicals and by 2022-23 it expects a

throughput of 10-15%, and this is likely to result in higher profitability. The

company’s current refining capacity is at 9 million metric ton p.a and it has

commissioned an integrated refinery project at Kochi, with which its refining

capacity will go upto 15.5 million ton.

Economic and Political News

 Govt approves BSNL’s plan to spin off mobile tower business

 Arun Jaitley says dormant accounts have fallen below 20% under Jan Dhan

 Shinzo Abe’s visit puts spotlight on bullet train, renewable energy

Corporate News

 Ericsson files insolvency petition against RCom to recover dues

 Lupin gets USFDA nod to market generic antibacterial drug

 SBI sets up team to track loan default resolutions

 Hindalco to export Alumina from its Odisha unit

www.angelbroking.com

Market Outlook

September 14, 2017

Top Picks

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

Strong growth in domestic business due to its leadership

in acute therapeutic segment. Alkem expects to launch

Alkem Laboratories

21,526

1,800

2,161

20.0

more products in USA, which bodes for its international

business.

We expect the company would report strong profitability

Asian Granito

1,358

451

493

9.3

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

7,616

795

807

1.5

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

17,311

552

610

10.5

presence in tier-II & III cities where the growth

opportunity is immense.

Loan growth is likely to pick up after a sluggish FY17.

Karur Vysya Bank

9,089

150

180

19.7

Lower credit cost will help in strong bottom-line growth.

Increasing share of CASA will help in NIM improvement.

High order book execution in EPC segment, rising B2C

KEI Industries

2,325

299

371

24.2

sales and higher exports to boost the revenues and

profitability

Speedier execution and speedier sales, strong revenue

Mahindra Lifespace

2,308

450

522

16.1

visibility in short-to-long run, attractive valuations

Expected to benefit from the lower capex requirement

Music Broadcast

2,283

400

434

8.5

and 15 year long radio broadcast licensing.

Massive capacity expansion along with rail advantage at

Navkar Corporation

2,736

192

265

38.1

ICD as well CFS augurs well for the company

Strong brands and distribution network would boost

Siyaram Silk Mills

2,133

2,275

2,500

9.9

growth going ahead. Stock currently trades at an

inexpensive valuation.

Market leadership in Hindi news genre and no.

viewership ranking in English news genre, exit from the

TV Today Network

1,575

264

344

30.3

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

2,45,321

8,121

8,658

6.6

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

2,839

527

655

24.3

year; change in borrowing mix will help in NIM

improvement.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

September 14, 2017

Key Upcoming Events

Global economic events release calendar

Bl oomberg Data

D ate

Time

C ountry

Event Description

Unit

Period

L ast Reporte d

E stimate d

Sep 14, 2017

7:30 AM China

Industrial Production (YoY)

% Change

Aug

6.40

6.60

6:00 PM US

Initial Jobless claims

Thousands

Sep 9

298.00

300.00

12: 00 PM India

Monthly Wholesale Prices YoY%

% Change

Aug

1.88

3.20

India

Imports YoY%

% Change

Aug

15.40

6:00 PM US

Consumer price index (mom)

% Change

Aug

0.10

0.30

Sep 15, 2017

4:30 PM UK

BOE Announce s rate s

% Ratio

Sep 14

0.25

India

Exports YoY%

% Change

Aug

3.94

6:45 PM US

Industrial Production

Aug

0.19

0.10

Sep 18, 2017

2:30 PM Euro Zone

Euro-Zone CPI (YoY)

Aug F

1.50

Sep 19, 2017

6:00 PM US

Housi ng Starts

Thousands

Aug

1,155.00

1,180.00

6:00 PM US

Building permits

Thousands

Aug

1,230.00

1,210.00

Sep 20, 2017

7:30 PM US

Existing home sales

Million

Aug

5.44

5.48

11: 30 PM US

FOMC rate decision

Sep 20

1.25

Sep 21, 2017

7:30 PM Euro Zone

Euro-Zone Consumer Confidence

Value

Sep A

(1.50)

Sep 22, 2017

1:00 PM Germany

PMI Services

Value

Sep P

53.50

7:30 PM US

Consumer Confidence

S.A./ 1985=100

Sep

122.90

Sep 26, 2017

1:00 PM Germany

PMI Manufacturing

Value

Sep P

59.30

7:30 PM US

New home sales

Thousands

Aug

571.00

Sep 28, 2017

6:00 PM US

GDP Qoq (Annualise d)

% Change

2Q T

3.00

Sep 29, 2017

1:25 PM Germany

Unempl oyment change (000's)

Thousands

Sep

(5.00)

2:00 PM UK

GDP (YoY)

% Change

2Q F

1.70

Sep 30, 2017

6:30 AM China

PMI Manufacturing

Value

Sep

51.70

Oct 02, 2017

2:00 PM UK

PMI Manufacturing

Value

Sep

56.90

Oct 04, 2017

2:30 PM India

RBI Reverse Re po rate

Oct 4

5.75

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

September 14, 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

3.0

2.4

5.7

6.0

2.0

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

3.2

50.0

3.5

3.0

48.0

2.4

2.2

2.5

46.0

2.0

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

(10.0)

3.50

(20.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Stock Watch

September 14, 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

225

209

4,382

1,873

2,099

15.0

9.5

10.5

23.7

21.5

3.6

3.3

15.8

16.0

2.2

2.0

United Phosphorus

Neutral

811

41,187

18,922

21,949

18.0

18.5

36.2

45.6

22.4

17.8

4.7

3.9

22.7

23.8

2.3

2.0

Auto & Auto Ancillary

Ashok Leyland

Accumulate

118

127

34,416

23,339

27,240

10.1

10.8

4.7

6.2

25.3

18.9

5.1

4.5

20.0

23.6

1.4

1.2

Bajaj Auto

Accumulate

2,931

3,151

84,821

23,936

27,955

19.5

20.1

142.7

167.3

20.5

17.5

4.5

4.0

21.8

22.8

3.1

2.6

Bharat Forge

Neutral

1,226

28,541

7,637

8,755

21.7

23.2

36.1

47.3

34.0

26.0

6.1

5.2

18.5

20.8

3.6

3.1

Eicher Motors

Neutral

32,226

87,728

19,043

22,837

19.5

19.9

835.4

1,019.0

38.6

31.6

14.4

11.1

40.9

37.8

4.5

3.7

Gabriel India

Neutral

209

2,999

1,782

2,033

9.7

10.2

7.1

8.9

29.4

23.6

5.9

5.0

21.0

22.2

1.6

1.4

Hero Motocorp

Accumulate

3,896

4,129

77,792

32,239

36,878

16.0

15.6

184.4

206.5

21.1

18.9

6.6

5.8

31.3

30.7

2.2

1.9

Jamna Auto Industries Neutral

258

2,058

1,441

1,662

14.4

14.8

13.9

17.6

18.6

14.7

5.1

4.1

30.0

31.0

1.4

1.2

Mahindra and Mahindra Neutral

1,304

81,012

46,971

53,816

13.6

14.0

67.7

79.8

19.3

16.4

2.8

2.5

15.0

15.9

1.6

1.4

Maruti

Accumulate

8,121

8,658

245,321

81,825

101,245

15.0

283.5

356.0

28.7

22.8

6.3

5.1

21.9

22.4

2.7

2.1

Minda Industries

Neutral

865

7,475

4,328

5,084

11.0

11.9

27.3

36.4

31.7

23.8

6.7

5.3

23.1

25.6

1.8

1.5

Motherson Sumi

Neutral

333

70,113

55,937

64,445

10.8

11.4

16.9

21.1

19.7

15.8

4.4

4.5

25.2

25.4

1.3

1.1

Tata Motors

Neutral

390

112,549

303,167

343,649

11.8

13.8

33.1

54.7

11.8

7.1

1.9

1.5

16.9

23.0

0.4

0.3

TVS Motor

Neutral

638

30,311

13,992

16,216

9.0

9.4

17.1

20.3

37.4

31.4

9.9

7.7

29.7

27.7

2.1

1.8

Amara Raja Batteries

Accumulate

781

858

13,347

6,140

7,122

14.3

15.6

29.3

39.0

26.7

20.0

4.6

3.8

17.1

19.0

2.2

1.9

Exide Industries

Neutral

218

18,530

8,689

9,854

15.1

15.2

9.7

11.0

22.6

19.8

4.0

3.5

15.7

16.1

1.9

1.6

Apollo Tyres

Neutral

260

13,219

15,739

17,326

13.3

14.6

20.4

26.7

12.7

9.7

1.5

1.4

20.4

26.7

1.1

1.0

Ceat

Neutral

1,761

7,123

6,661

7,717

11.1

14.2

116.2

178.2

15.2

9.9

2.6

2.2

15.2

21.3

1.2

1.0

JK Tyres

Neutral

150

3,404

8,318

9,239

16.2

16.4

21.0

27.5

7.2

5.5

1.4

1.1

19.1

20.4

0.9

0.7

Swaraj Engines

Neutral

2,053

2,551

788

889

16.4

16.5

71.6

81.0

28.7

25.4

8.3

7.7

29.6

31.0

2.9

2.5

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

1,847

7,692

4,286

5,194

7.1

8.2

42.9

58.1

43.1

31.8

3.5

3.2

7.6

8.7

1.9

1.5

Bharat Electronics

Neutral

195

43,522

10,258

12,470

19.6

19.5

7.3

8.6

26.7

22.7

0.5

20.4

21.9

3.7

3.0

Voltas

Neutral

549

18,167

6,778

8,004

9.6

11.0

17.1

22.4

32.1

24.5

7.7

6.7

17.7

19.8

2.4

2.0

BHEL

Neutral

133

32,443

33,200

39,167

6.8

9.5

6.2

11.2

21.4

11.8

1.0

0.9

4.6

8.0

0.6

0.4

Blue Star

Accumulate

795

850

7,616

5,101

5,997

6.0

7.0

17.9

26.6

44.4

29.9

9.5

8.6

21.9

29.0

1.5

1.3

CG Power and Industrial

Neutral

5,349

6,555

7,292

7.5

0.8

8,535.0

106.7

1.3

0.1

1.2

0.9

0.8

Solutions

Greaves Cotton

Neutral

145

3,537

1,778

1,993

14.7

15.1

8.1

9.1

17.9

15.9

4.0

3.8

21.8

23.6

1.8

1.6

www.angelbroking.com

Stock Watch

September 14, 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

323

350

8,298

9,779

11,113

9.4

9.8

14.2

18.2

22.7

17.7

4.4

3.6

21.1

22.1

1.1

1.0

KEI Industries

Buy

299

371

2,325

3,001

3,391

10.0

13.0

16.1

23.0

18.6

4.2

3.5

18.2

18.7

1.0

0.8

Thermax

Neutral

899

10,707

4,125

4,747

10.3

10.8

26.7

31.5

33.7

28.5

3.8

3.4

11.2

12.0

2.3

2.0

VATech Wabag

Accumulate

635

681

3,467

3,867

4,126

9.6

10.0

34.9

39.8

18.2

16.0

3.0

2.6

17.7

17.5

0.9

0.8

Cement

ACC

Neutral

1,840

34,561

12,255

13,350

13.5

14.3

58.0

66.2

31.7

27.8

3.8

3.5

11.5

12.2

2.8

2.6

Ambuja Cements

Neutral

286

56,730

10,250

11,450

17.5

19.0

7.2

8.3

39.7

34.4

2.8

2.7

7.0

7.8

5.3

4.7

India Cements

Neutral

189

5,829

6,135

6,750

14.8

15.2

8.5

11.5

22.3

16.5

1.1

4.8

6.2

1.3

1.1

JK Cement

Neutral

1,053

7,361

4,150

4,775

19.2

20.0

49.0

63.5

21.5

16.6

3.4

2.9

17.0

18.5

2.2

1.9

J K Lakshmi Cement

Neutral

425

5,000

3,422

3,757

15.5

17.0

13.5

23.2

31.5

18.3

3.3

2.8

10.8

15.5

1.9

1.6

Orient Cement

Neutral

163

3,343

2,215

3,233

16.8

17.0

5.9

6.9

27.7

23.7

2.1

2.0

10.8

10.1

2.5

1.7

UltraTech Cement

Neutral

4,173

114,566

28,250

35,150

20.2

23.5

77.5

122.2

53.9

34.2

4.5

4.1

9.6

14.8

4.5

3.6

Construction

KNR Constructions

Neutral

201

2,825

1,846

2,203

14.5

12.1

13.7

16.6

14.7

0.9

0.8

17.5

16.7

1.6

1.3

Larsen & Toubro

Neutral

1,223

171,252

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

147

7,090

739

842

61.6

62.7

5.1

6.2

28.8

23.9

3.6

3.5

12.7

14.9

9.1

7.8

PNC Infratech

Accumulate

135

143

3,457

2,040

2,935

13.0

6.4

9.0

21.1

15.0

0.6

0.5

9.7

12.2

1.7

1.2

Simplex Infra

Neutral

477

2,360

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

297

5,101

3,823

4,426

10.7

10.8

10.3

11.8

28.9

25.2

3.5

3.0

10.1

10.5

1.7

1.4

NBCC

Neutral

210

18,914

9,099

12,706

6.4

7.3

9.6

28.9

22.0

1.3

1.0

27.5

30.5

1.9

1.4

MEP Infra

Neutral

110

1,781

2,403

2,910

18.3

16.8

2.4

6.1

46.6

18.0

17.7

11.9

35.2

55.8

1.9

1.6

SIPL

Neutral

100

3,529

2,060

2,390

46.8

47.7

(5.8)

(3.1)

3.8

4.3

(14.2)

(2.3)

6.5

6.1

Engineers India

Neutral

159

10,688

1,795

2,611

21.1

22.4

5.9

8.1

26.9

19.6

1.9

12.9

16.1

4.3

2.8

Financials

Axis Bank

Buy

499

580

119,592

32,558

35,843

3.5

3.2

27.8

41.0

17.9

12.2

1.9

1.7

11.4

14.9

Bank of Baroda

Neutral

144

33,145

22,533

26,079

2.4

12.0

20.9

12.0

6.9

0.8

0.7

6.6

11.0

Canara Bank

Neutral

340

20,323

17,925

20,235

2.0

2.1

18.5

36.5

18.4

9.3

0.7

3.4

6.2

Can Fin Homes

Neutral

2,808

7,474

586

741

3.5

107.8

141.0

26.0

19.9

5.7

4.6

24.1

25.6

Cholamandalam Inv. &

Accumulate

1,171

1,230

18,302

2,826

3,307

6.3

53.7

64.6

21.8

18.1

3.7

3.2

18.3

18.9

Fin. Co.

Dewan Housing Finance Accumulate

552

610

17,311

2,676

3,383

2.4

2.7

37.4

49.7

14.8

11.1

1.9

1.7

13.8

16.2

Equitas Holdings

Buy

167

235

5,653

1,125

1,380

9.6

9.8

1.5

6.0

111.2

27.8

2.5

2.4

8.2

Federal Bank

Accumulate

113

125

22,032

4,896

5,930

2.8

3.1

5.4

7.6

21.1

14.9

1.8

1.6

8.5

11.0

www.angelbroking.com

Stock Watch

September 14, 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

527

655

2,839

376

477

3.6

3.7

33.0

40.0

16.0

13.2

2.9

2.4

20.0

23.0

HDFC Bank

Neutral

1,843

475,647

55,236

63,253

4.5

4.4

68.9

82.4

26.8

22.4

4.7

3.9

18.7

18.5

ICICI Bank

Accumulate

292

315

187,311

42,361

51,378

3.6

3.9

18.4

25.7

15.9

11.4

1.7

11.3

15.0

Karur Vysya Bank

Buy

150

180

9,089

3,289

3,630

3.7

3.9

10.8

14.1

13.9

10.7

1.7

1.5

12.5

14.7

LIC Housing Finance

Neutral

660

33,323

4,895

6,332

3.4

3.7

50.7

66.8

13.0

9.9

2.6

2.2

21.7

23.8

Punjab Natl.Bank

Neutral

143

30,398

23,708

25,758

2.1

5.9

16.4

24.3

8.7

0.7

3.0

8.3

RBL Bank

Neutral

534

22,061

2,309

2,888

2.6

2.5

16.4

19.1

32.6

28.0

4.1

3.6

13.3

13.8

Repco Home Finance

Buy

662

825

4,140

496

597

4.4

4.2

38.5

48.7

17.2

13.6

3.1

2.6

19.6

20.6

South Ind.Bank

Neutral

5,197

3,195

3,567

3.0

3.1

3.0

3.8

9.5

7.5

1.0

0.8

10.5

11.9

St Bk of India

Neutral

273

235,957

105,827

121,056

2.4

2.5

16.1

25.6

17.0

10.7

1.3

1.2

6.6

9.9

Union Bank

Neutral

136

9,894

14,650

16,225

2.3

23.1

32.5

5.9

4.2

0.5

0.4

7.1

9.2

Yes Bank

Neutral

1,841

84,334

11,088

13,138

3.0

2.9

84.0

99.3

21.9

18.5

3.4

2.9

16.3

16.8

FMCG

Akzo Nobel India

Neutral

1,817

8,714

3,164

3,607

13.8

13.7

58.6

67.9

31.0

26.7

7.6

6.7

24.5

25.1

2.6

2.3

Asian Paints

Neutral

1,252

120,116

17,603

20,615

18.6

2,128.9

2,543.3

0.6

0.5

12.4

10.4

28.0

28.9

6.6

5.6

Britannia

Neutral

4,325

51,920

9,690

11,278

14.8

15.4

84.0

101.0

51.5

42.8

18.8

14.9

40.6

39.0

5.3

4.6

Colgate

Neutral

1,144

31,115

4,420

5,074

24.9

25.3

28.6

32.8

40.0

34.9

15.8

12.7

43.8

40.5

6.8

5.9

Dabur India

Neutral

308

54,255

8,346

9,344

19.6

19.9

7.8

9.0

39.5

34.2

8.0

7.2

25.2

24.8

6.1

5.4

GlaxoSmith Con*

Neutral

5,092

21,413

5,072

5,760

18.2

18.4

176.3

199.2

28.9

25.6

6.1

5.5

21.2

21.7

3.5

3.1

Godrej Consumer

Neutral

939

63,997

10,171

11,682

20.8

21.5

21.7

27.1

43.3

34.7

9.7

8.4

22.3

23.4

6.4

5.5

HUL

Neutral

1,251

270,722

37,077

41,508

20.3

21.8

5,189.9

6,318.5

0.2

38.1

32.6

74.8

82.0

7.2

6.4

ITC

Neutral

272

330,695

44,588

49,853

37.0

37.3

9.6

11.0

28.3

24.7

6.9

6.6

25.1

27.3

6.9

6.1

Marico

Neutral

338

43,592

6,788

7,766

18.5

19.2

7.1

8.5

47.6

39.7

16.6

14.3

36.9

38.0

6.3

5.5

Nestle*

Neutral

7,253

69,934

10,083

11,182

20.0

20.9

119.7

141.3

60.6

51.3

213.6

195.2

36.7

39.8

6.6

5.9

Tata Global

Neutral

207

13,083

7,121

7,641

11.9

12.3

6.9

8.0

30.0

25.9

2.0

1.9

6.8

7.2

1.6

1.5

Procter & Gamble

Neutral

8,349

27,103

3,034

3,579

27.1

27.7

167.7

198.8

49.8

42.0

13.4

11.5

28.8

29.5

8.4

7.0

Hygiene

HCL Tech^

Buy

871

1,014

124,269

52,342

57,053

20.9

62.8

67.6

13.9

12.9

3.1

2.7

22.4

20.6

2.0

1.8

Infosys

Buy

884

1,179

202,949

73,963

80,619

26.0

64.4

69.3

13.7

12.8

2.7

2.5

19.7

19.6

2.2

1.9

TCS

Accumulate

2,488

2,651

490,262

127,403

138,870

27.6

144.5

156.0

17.2

16.0

5.1

4.8

29.7

29.8

3.5

3.2

Tech Mahindra

Buy

440

533

42,886

31,015

33,496

15.0

35.6

38.1

12.4

11.5

2.1

2.0

17.0

16.3

1.2

1.0

www.angelbroking.com

Stock Watch

September 14, 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

Wipro

Neutral

296

144,078

58,536

61,858

20.3

18.2

19.1

16.3

15.5

2.5

2.2

14.6

13.4

2.4

2.3

Media

D B Corp

Neutral

365

6,714

2,404

2,625

30.5

31.5

23.7

26.9

15.4

13.6

3.6

3.1

23.5

22.8

2.6

2.4

HT Media

Neutral

2,255

2,589

2,830

15.1

15.4

8.3

10.9

11.7

8.9

0.9

8.4

10.4

0.4

0.3

Jagran Prakashan

Buy

179

225

5,857

2,541

2,835

28.5

28.7

12.7

14.1

12.7

2.9

2.5

21.3

21.4

2.2

1.9

Sun TV Network

Neutral

813

32,047

3,238

3,789

51.9

55.1

30.9

38.0

26.3

21.4

7.5

6.6

30.0

31.0

9.4

7.9

Hindustan Media

Neutral

260

1,905

1,002

1,074

23.3

23.5

29.2

33.8

8.9

7.7

1.4

1.2

15.6

15.4

0.9

0.6

Ventures

TV Today Network

Buy

264

344

1,575

667

727

27.7

18.6

20.1

14.2

13.2

2.2

2.3

15.6

17.3

1.9

1.8

Music Broadcast Limited Accumulate

400

434

2,283

271

317

91.0

109.0

6.0

10.0

66.7

40.0

4.2

3.8

6.5

9.3

8.0

6.6

Metals & Mining

Coal India

Neutral

256

158,972

82,301

91,235

17.0

18.0

17.1

20.5

15.0

12.5

2.8

2.6

45.0

55.0

1.6

1.4

Hind. Zinc

Neutral

307

129,675

22,108

24,555

57.0

58.0

22.1

26.3

13.9

11.7

4.5

3.6

32.0

35.0

4.9

4.1

Hindalco

Neutral

248

55,653

102,350

105,355

13.5

14.5

21.5

24.5

11.5

10.1

1.6

1.3

15.0

15.2

1.1

JSW Steel

Neutral

264

63,778

64,500

68,245

21.1

21.5

20.1

21.2

13.1

12.5

2.4

2.1

1.7

1.6

NMDC

Neutral

133

42,096

10,209

11,450

47.0

48.0

11.1

12.1

12.0

11.0

1.7

1.6

3.6

3.3

SAIL

Neutral

25,545

54,100

63,555

3.0

10.0

(10.0)

1.5

41.2

0.8

1.5

1.3

Vedanta

Neutral

327

121,589

81,206

87,345

28.0

29.0

26.5

33.5

12.3

9.8

2.8

2.4

2.2

1.9

Tata Steel

Neutral

680

66,014

121,445

126,500

16.2

17.2

65.4

81.3

10.4

8.4

1.7

1.4

1.1

0.9

Oil & Gas

GAIL

Neutral

407

68,912

53,115

52,344

14.2

15.3

30.0

31.1

13.6

13.1

1.7

1.6

1.0

ONGC

Neutral

161

206,872

83,111

84,934

44.2

44.9

16.4

16.9

9.8

9.5

1.2

1.1

2.4

2.3

Indian Oil Corp

Neutral

416

201,981

396,116

432,560

8.5

8.8

40.1

42.2

10.4

9.9

1.8

1.6

0.7

0.6

Reliance Industries

Neutral

849

552,238

257,711

267,438

17.0

18.2

89.1

89.5

9.5

0.9

0.8

1.8

1.7

Pharmaceuticals

Alembic Pharma

Buy

511

600

9,626

3,903

4,584

18.2

19.2

21.8

27.2

23.4

18.8

4.3

3.5

19.8

20.6

2.5

2.1

Alkem Laboratories Ltd

Buy

1,800

2,161

21,526

6,901

7,850

18.4

19.1

85.0

100.5

21.2

17.9

4.3

3.6

20.2

20.1

3.1

2.7

Aurobindo Pharma

Accumulate

759

823

44,489

17,086

19,478

22.1

22.0

44.7

51.4

17.0

14.8

3.8

3.0

24.7

22.7

2.7

2.4

Aventis*

Neutral

4,060

9,351

2,508

2,862

16.8

139.9

153.8

29.0

26.4

4.2

3.4

23.5

25.8

3.3

2.7

Cadila Healthcare

Reduce

481

426

49,257

11,584

13,228

20.3

20.4

18.7

21.3

25.7

22.6

5.7

4.7

24.6

22.9

4.1

3.5

Cipla

Sell

554

458

44,604

16,619

19,437

15.4

16.2

19.7

24.3

28.1

22.8

3.2

2.8

12.0

13.2

2.8

2.4

Dr Reddy's

Neutral

2,210

36,642

15,844

17,973

17.6

18.2

91.7

111.0

24.1

19.9

2.7

2.5

11.9

13.0

2.5

2.2

GSK Pharma*

Neutral

2,415

20,458

3,260

3,651

15.0

18.0

46.1

58.6

52.4

41.2

10.8

11.1

20.0

26.5

6.2

5.6

Indoco Remedies

Sell

198

153

1,823

1,154

1,310

14.9

11.3

12.7

17.5

15.6

2.5

2.2

15.0

1.7

1.4

www.angelbroking.com

Stock Watch

September 14, 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

Accumulate

478

540

6,030

3,593

4,022

14.5

15.5

19.4

25.2

24.6

19.0

2.3

2.0

9.5

11.2

1.7

1.6

Lupin

Buy

992

1,467

44,823

18,657

21,289

21.3

23.3

52.8

66.7

18.8

14.9

2.8

2.4

16.3

17.5

2.4

2.0

Natco Pharma

Neutral

767

13,369

1,836

1,946

31.8

28.9

22.1

20.6

34.7

37.2

7.0

6.2

20.1

16.7

7.1

6.7

Sun Pharma

Accumulate

503

558

120,670

32,899

36,451

26.9

25.4

31.6

32.3

15.9

15.6

2.8

2.4

18.7

18.8

3.3

2.8

Syngene International

Buy

467

557

9,333

1,402

1,823

32.8

36.0

15.9

20.7

29.4

22.6

5.5

4.5

18.7

20.0

6.6

5.1

Power

Tata Power

Neutral

22,936

32,547

33,806

20.5

4.7

5.4

18.0

15.9

1.7

1.5

10.5

1.7

1.6

NTPC

Neutral

169

139,266

86,070

101,246

28.3

30.7

12.9

16.2

13.1

10.4

1.4

1.3

10.6

12.4

3.0

2.7

Power Grid

Neutral

214

111,825

29,183

32,946

89.7

90.0

18.0

20.8

11.9

10.3

2.0

1.8

17.7

18.2

7.8

7.2

Real Estate

Prestige Estate

Neutral

257

9,647

4,607

5,146

21.0

22.2

7.9

9.8

32.6

26.3

2.0

1.9

10.3

12.0

3.3

3.0

MLIFE

Buy

450

522

2,308

487

590

12.3

17.8

21.0

31.2

21.4

14.4

1.1

5.2

7.4

3.5

2.8

Telecom

Bharti Airtel

Neutral

401

160,296

97,903

105,233

36.0

36.3

9.3

11.1

43.1

36.3

2.1

2.0

5.0

5.6

2.6

2.3

Idea Cellular

Neutral

29,793

35,012

37,689

27.1

27.7

(4.4)

(2.7)

1.3

(6.8)

(4.6)

2.2

1.9

zOthers

Abbott India

Neutral

4,117

8,747

3,244

3,723

14.9

16.1

167.5

209.4

24.6

19.7

5.4

4.5

23.7

24.8

2.3

2.0

Asian Granito

Accumulate

451

493

1,358

1,169

1,286

12.5

16.0

19.7

28.2

22.9

3.0

2.7

10.7

11.6

1.4

1.2

Bajaj Electricals

Accumulate

373

395

3,784

4,646

5,301

6.7

7.6

16.1

22.3

23.2

16.7

3.8

3.2

16.4

19.2

0.8

0.7

Banco Products (India)

Neutral

219

1,568

1,530

1,695

13.2

12.7

19.0

20.0

11.5

11.0

1.8

1.6

0.2

0.9

103.8

Coffee Day Enterprises

Neutral

248

5,108

3,494

3,913

17.4

18.0

4.8

5.7

43.5

2.2

2.1

0.1

1.9

1.7

Ltd

Elecon Engineering

Neutral

599

171

201

15.0

16.2

36.0

43.0

1.5

1.2

0.1

2.9

2.4

Garware Wall Ropes

Neutral

894

1,957

928

1,003

15.2

39.4

43.2

22.7

20.7

3.7

3.2

16.5

15.4

2.0

1.8

Goodyear India*

Neutral

830

1,913

1,717

1,866

11.8

12.3

47.9

49.8

17.3

16.7

2.7

2.3

15.6

15.7

0.8

115.9

Hitachi

Neutral

1,936

5,265

2,355

2,715

10.3

10.8

49.0

60.9

39.5

31.8

9.3

7.3

0.2

2.3

1.9

HSIL

Neutral

383

2,771

2,240

2,670

14.6

15.0

17.0

22.0

22.5

17.4

1.9

1.8

0.1

1.5

1.2

Interglobe Aviation

Neutral

1,199

43,348

22,570

27,955

14.2

15.0

63.6

81.8

18.9

14.7

9.9

8.4

0.5

0.6

1.6

1.2

Jyothy Laboratories

Neutral

410

7,453

1,781

2,044

14.1

15.0

9.4

10.5

43.9

39.1

9.3

8.8

0.2

4.4

3.8

Linc Pen & Plastics

Neutral

232

344

420

462

9.3

15.3

17.1

15.2

13.6

2.6

2.7

16.9

19.5

0.9

0.8

M M Forgings

Neutral

628

758

542

642

20.1

21.0

41.6

56.8

15.1

11.1

2.1

1.8

0.1

0.2

1.8

1.6

Mirza International

Neutral

167

2,003

1,148

1,285

18.0

8.0

9.4

20.7

17.8

3.4

2.9

16.3

16.1

1.9

1.7

Navkar Corporation

Buy

192

265

2,736

561

617

41.5

11.5

12.7

16.7

15.1

1.8

1.6

10.5

10.4

5.5

4.8

Nilkamal

Neutral

1,580

2,357

2,317

2,525

11.4

11.1

96.0

105.0

16.5

15.0

2.8

2.4

0.2

1.0

0.9

www.angelbroking.com

Stock Watch

September 14, 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

248

2,085

1,987

2,379

7.6

9.0

12.4

18.3

20.0

13.6

2.8

2.5

8.2

13.2

1.2

1.0

Radico Khaitan

Neutral

175

2,326

1,811

1,992

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

511

6,141

1,981

2,310

13.7

14.5

12.0

15.5

42.6

33.0

8.3

6.7

0.2

3.2

2.7

Siyaram Silk Mills

Accumulate

2,275

2,500

2,133

1,769

1,981

12.7

113.1

131.1

20.1

17.4

3.1

2.7

15.5

1.4

1.2

Styrolution ABS India* Neutral

946

1,664

1,800

1,980

8.0

8.1

42.0

46.2

22.5

20.5

2.5

2.3

0.1

1.0

Surya Roshni

Neutral

303

1,329

4,870

5,320

7.7

7.8

22.8

28.1

13.3

10.8

1.8

1.5

0.1

0.5

0.4

TVS Srichakra

Neutral

3,194

2,445

2,729

2,893

12.7

12.5

248.5

265.0

12.9

12.1

3.6

3.0

0.3

0.9

0.8

Visaka Industries

Neutral

652

1,036

1,104

1,214

12.1

12.6

31.0

37.9

21.0

17.2

2.6

2.3

0.1

1.2

1.0

VIP Industries

Accumulate

230

250

3,256

1,450

1,693

10.4

10.5

6.5

7.8

35.2

29.5

7.4

6.5

21.1

22.1

2.2

1.9

Navin Fluorine

Accumulate

652

730

3,212

945

1,154

22.4

22.6

28.7

34.8

22.7

18.8

3.8

3.2

2.9

2.3

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on September 13, 2017

www.angelbroking.com

Market Outlook

September 14, 2017

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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