Market Outlook

September 15, 2016

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian markets are likely to open negative taking global cues

BSE Sensex

0.1

28,372

Nifty

0.1

8,727

After early gains, US markets ended mixed following a steep drop Tuesday and a

three-session bout of heightened volatility sparked by fears of rising interest rates.

Mid Cap

1.3

173

13,125

Small Cap

1.2

152

12,712

The European markets ended Wednesday's session with mixed results, following 4

straight days of losses. The markets fluctuated between gains and losses over the

Bankex

0.8

176

22,870

course of the day, in choppy trading action.

Indian markets snapped a two-session losing streak on Wednesday after European

Global Indices

Chg (%)

(Pts)

(Close)

stocks recovered from four days of losses in reaction to solid U.K. labor data and a

Dow Jones

(0.2)

(32)

18,035

rise in commodity prices.

Nasdaq

0.4

5,174

News Analysis

FTSE

0.1

6,673

 Hinduja Foundries to merge with Ashok Leyland

Nikkei

(0.7)

(115)

16,614

Detailed analysis on Pg2

Hang Seng

(0.1)

(25)

23,191

Shanghai Com

(0.7)

(21)

3,003

Investor’s Ready Reckoner

Key Domestic & Global Indicators

Advances / Declines

BSE

NSE

Stock Watch: Latest investment recommendations on 150+ stocks

Advances

1,758

1,092

Refer Pg5 onwards

Declines

978

531

Top Picks

Unchanged

190

CMP

Target

Upside

Company

Sector

Rating

(`)

(%)

Amara Raja Batteries Auto & Auto Ancillary

Buy

999

1,174

17.5

Volumes (` Cr)

HCL Tech

Buy

776

1,000

28.9

BSE

3,616

Bharat Electronics

Capital Goods

Buy

1,192

1,414

18.6

NSE

22,021

Equitas Holdings

Financials

Buy

178

235

31.7

Navkar Corporation Others

Buy

200

265

32.8

More Top Picks on Pg3

Net Inflows (` Cr)

Net

Mtd

Ytd

FII

(591)

1,327

41,995

Key Upcoming Events

Consensus

MFs

(222)

(655)

9,454

Date

Region

Event Description

Reading

Expectations

Sep 15 US

Initial Jobless claims

259.0

265.0

Top Gainers

Price (`)

Chg (%)

Sep 15 Euro Zone

Euro Zone CPI (YoY)

0.2

Sep 15 US

Industrial Production

0.7

(0.2)

Punjlloyd

14.0

Sep 15 UK

BOE Announces rates

0.3

Monsanto

2,572

9.9

Sep 16 US

Consumer price index (mom)

0.1

Relcapital

579

8.7

Sep 20 US

Housing starts

1,211.0

1,190.0

6.(

Jisljaleqs

8.5

More Events on Pg4

Hcc

7.9

Top Losers

Price (`)

Chg (%)

Suzlon

(7.0)

Prestige

193

(5.0)

Aloktext

(4.3)

Gppl

185

(4.2)

Castrolind

445

(4.0)

As on September 14, 2016

www.angelbroking.com

Market Outlook

September 15, 2016

News Analysis

Hinduja Foundries to merge with Ashok Leyland

The Board of automobile component firm Hinduja Foundries has given its nod for

amalgamating the company with heavy commercial vehicle maker Ashok Leyland

subject to regulatory and shareholders approval of both the companies.

At the meeting, the Board of Directors of the company unanimously approved the

proposal of amalgamating Hinduja Foundries Ltd, a Hinduja Group company with

Ashok Leyland subject to various regulatory and shareholders approval of both the

companies. The Board also approved the exchange ratio on the amalgamation in

which one hundred equity shares of `10 each of Hinduja Foundries Ltd will get 40

shares at `1 each fully paid of Ashok Leyland Ltd. One Thousand 2008 series

GDRs of Hinduja Foundries Ltd will get 133 equity shares of `1 each fully paid of

Ashok Leyland. One 2016 series GDRs of Hinduja Foundries Ltd will get 4,800

equity shares of `1 each fully paid of Ashok Leyland Ltd. The proposed date of

amalgamation is October 1, 2016.

Economic and Political News

 MGNREGA payment norms relaxed in Arunachal Pradesh

 Wholesale prices rise 3.74 % in August

 All India tea production dropped by 7.22%

Corporate News

 RCom & Aircel come together to create India's 4th largest telco

 Infosys to set up delivery centres in Croatia, Russia

 Reliance Capital approves Reliance Home Finance's listing on stock exchange

www.angelbroking.com

Market Outlook

September 15, 2016

Top Picks ★★★★★

Large Cap

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

To outpace battery industry growth due to better technological

Amara Raja Batteries

17,065

999

1,174

17.5

products leading to market share gains in both the automotive

OEM and replacement segments.

Uptick in defense capex by government when coupled with BELs

Bharat Electronics

28,614

1,192

1,414

18.6

strong market positioning, indicate that good times are ahead

for BEL.

The stock is trading at attractive valuations and is factoring all

HCL Tech

1,09,425

776

1,000

28.9

the bad news.

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

Infosys

2,40,513

1,047

1,370

30.8

be a US$20bn in FY2020.

Source: Company, Angel Research

Mid Cap

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

Among the top 4 players in the consumer durables segment.

Bajaj Electricals

2,710

268

306

14.1

Improved profitability backed by turn around in E&P segment.

Strong order book lends earnings visibility.

Favourable outlook for the AC industry to augur well for

Cooling products business which is out pacing the market

Blue Star

4,899

514

578

12.4

growth. EMPPAC division's profitability to improve once

operating environment turns around.

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

Dewan Housing Finance

8,408

288

325

12.8

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

Equitas Holdings

5,983

178

235

31.7

adequate CAR. ROE & ROA likely to remain decent as risk of

dilution remains low. Attractive valuations considering growth.

Expectations of above average monsoon augurs well for

Goodyear India

1,373

595

684

14.9

Goodyear India as it derives ~50% of its turnover from farm

tyre segment.

Economic recovery to have favourable impact on advertising &

circulation revenue growth. Further, the acquisition of a radio

Jagran Prakashan

6,177

189

225

19.1

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

growth.

Speedier execution and speedier sales, strong revenue visibilty

Mahindra Lifespace

1,785

435

522

20.0

in short-to-long run, attractive valuations

Massive capacity expansion along with rail advantage at ICD

Navkar Corporation

2,846

200

265

32.8

as well CFS augurs well for the company

Earnings boost on back of stable material prices and

Radico Khaitan

1,405

106

125

18.4

favourable pricing environment. Valuation discount to peers

provides additional comfort

Strong brands and distribution network would boost growth

Siyaram Silk Mills

1,167

1,245

1,469

18.0

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

1,772

297

363

22.2

and anticipated growth in ad spends by corporates to benefit

the stock.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

September 15, 2016

Key Upcoming Events

Global economic events release calendar

Date

Time

Country

Event Description

Unit

Period

Bloomberg Data

Last Reported Estimated

Sep 15, 2016

6:00PM

Initial Jobless claims

Thousands

Sep 10

259.00

265.00

Producer Price Index (mom)

% Change

Aug

(0.50)

2:30PM

Euro Zone

Euro-Zone CPI (YoY)

Aug F

0.20

6:45PM

Industrial Production

Aug

0.74

(0.20)

4:30PM

BOE Announces rates

% Ratio

Sep 15

0.25

Sep 16, 2016

6:00PM

Consumer price index (mom)

% Change

Aug

0.10

Sep 20, 2016

6:00PM

Housing Starts

Thousands

Aug

1,211.00

1,190.00

6:00PM

Building permits

Thousands

Aug

1,144.00

1,180.00

Sep 21, 2016

11:30PM

FOMC rate decision

Sep 21

0.50

Sep 22, 2016

7:30PM

Euro Zone

Euro-Zone Consumer Confidence

Value

Sep A

(8.50)

7:30PM

Existing home sales

Million

Aug

5.39

5.47

Sep 23, 2016

1:00PM

Germany

PMI Services

Value

Sep P

51.70

1:00PM

Germany

PMI Manufacturing

Value

Sep P

53.60

Sep 26, 2016

7:30PM

Consumer Confidence

S.A./ 1985=100

Sep

101.10

98.00

Sep 27, 2016

7:30PM

New home sales

Thousands

Aug

654.00

580.00

Sep 29, 2016

1:25PM

Germany

Unemployment change (000's)

Thousands

Sep

(7.00)

6:00PM

GDP Qoq (Annualised)

% Change

2Q T

1.10

1.30

Sep 30, 2016

2:00PM

GDP (YoY)

% Change

2Q F

2.20

Oct 1, 2016

6:30AM

China

PMI Manufacturing

Value

Sep

50.40

Oct 3, 2016

2:00PM

PMI Manufacturing

Value

Sep

53.30

Source: Bloomberg, Angel Research

Market Outlook

September 15, 2016

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

9.0

12.0

8.3

9.9

7.8

7.9

8.0

7.5

7.6

10.0

7.2

7.1

8.0

6.6

6.7

7.0

6.4

6.0

3.7

5.8

6.0

4.0

1.9

2.0

1.1

2.0

0.3

5.0

4.0

(2.0)

(0.9)

(1.6)

(1.3)

(4.0)

(2.4)

3.0

(3.4)

(6.0)

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

(%)

55.0

7.0

6.1

5.6

5.7

5.8

54.0

6.0

5.4

5.5

5.0

5.3

5.1

53.0

4.8

5.0

4.4

52.0

4.0

51.0

50.0

3.0

49.0

2.0

48.0

1.0

47.0

46.0

Source: MOSPI, Angel Research

Source: Market, Angel Research; Note: Level above 50 indicates expansion

Exhibit 5: Exports and imports growth trends

Exhibit 6: Key policy rates

(%)

Exports yoy growth

Imports yoy growth

(%)

Repo rate

Reverse Repo rate

CRR

5.0

7.00

0.0

6.50

(5.0)

6.00

(10.0)

5.50

(15.0)

5.00

(20.0)

4.50

(25.0)

4.00

(30.0)

3.50

(35.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Market Outlook

September 15, 2016

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

56,821

(2.1)

16.7

22.3

Russia

Micex

2,004

1.4

7.2

15.9

India

Nifty

8,727

1.8

6.8

11.6

China

Shanghai Composite

3,003

(3.9)

4.5

(5.3)

South Africa

Top 40

45,985

1.5

(1.0)

5.8

Mexico

Mexbol

45,768

(6.0)

1.2

4.5

Indonesia

LQ45

881

(3.8)

4.9

17.7

Malaysia

KLCI

1,661

(1.0)

0.7

4.5

Thailand

SET 50

931

(5.9)

2.4

3.0

USA

Dow Jones

18,035

(2.9)

2.0

7.7

FTSE

6,673

(3.5)

11.8

7.9

Japan

Nikkei

16,614

(1.5)

4.8

(8.6)

Germany

DAX

10,378

(3.4)

8.7

4.7

France

CAC

4,370

(2.8)

5.2

(1.4)

Source: Bloomberg, Angel Research

www.angelbroking.com

Stock Watch

September 15, 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

223

4,336

1,937

2,164

13.3

14.3

9.0

11.0

24.8

20.3

4.3

3.8

18.4

19.8

2.2

2.0

United Phosphorus

Accumulate

697

684

35,312

15,176

17,604

18.5

37.4

44.6

18.6

15.6

3.7

3.0

21.4

21.2

2.3

1.9

Auto & Auto Ancillary

Ashok Leyland

Buy

111

24,062

22,407

26,022

10.6

5.2

6.4

16.2

13.2

3.7

3.1

23.6

24.7

1.1

1.0

Bajaj Auto

Neutral

2,980

86,233

25,093

27,891

19.5

19.2

143.9

162.5

20.7

18.3

5.8

5.0

30.3

29.4

3.1

2.7

Bharat Forge

Neutral

860

20,027

7,726

8,713

20.5

21.2

35.3

42.7

24.4

20.2

4.5

4.1

18.9

20.1

2.6

2.3

Eicher Motors

Neutral

22,598

61,379

16,583

20,447

17.5

18.0

598.0

745.2

37.8

30.3

12.9

9.8

41.2

38.3

3.6

2.8

Gabriel India

Neutral

117

1,677

1,544

1,715

9.0

9.3

5.4

6.3

21.6

18.5

4.1

3.6

18.9

19.5

1.0

0.9

Hero Motocorp

Neutral

3,590

71,678

31,253

35,198

15.3

15.0

172.3

192.1

20.8

18.7

7.6

6.5

38.9

37.0

2.1

1.9

Jamna Auto Industries Neutral

212

1,695

1,486

1,620

9.8

9.9

15.0

17.2

14.2

12.3

3.1

2.6

21.8

21.3

1.2

1.1

L G Balakrishnan & Bros Neutral

536

841

1,302

1,432

11.6

11.9

43.7

53.0

12.3

10.1

1.7

1.6

13.8

14.2

0.7

Mahindra and Mahindra Neutral

1,413

87,757

46,534

53,077

11.6

11.7

67.3

78.1

21.0

18.1

3.4

3.0

15.4

15.8

1.9

1.6

Maruti

Neutral

5,364

162,048

69,186

82,217

14.7

14.4

198.5

241.4

27.0

22.2

5.3

4.3

20.2

20.0

2.0

1.6

Minda Industries

Neutral

315

2,502

2,728

3,042

9.0

9.1

68.2

86.2

4.6

3.7

1.1

0.8

23.8

24.3

0.9

0.8

Motherson Sumi

Neutral

316

41,772

45,896

53,687

7.8

8.3

13.0

16.1

24.2

19.6

7.8

6.2

34.7

35.4

1.0

0.8

Rane Brake Lining

Neutral

1,273

1,007

511

562

11.3

11.5

28.1

30.9

45.3

41.2

6.9

6.3

15.3

15.0

2.0

1.9

Setco Automotive

Neutral

605

741

837

13.0

15.2

17.0

3.0

2.7

0.5

0.4

15.8

16.3

1.2

1.1

Tata Motors

Neutral

561

162,088

300,209

338,549

8.9

8.4

42.7

54.3

13.2

10.4

2.1

1.8

15.6

17.2

0.6

TVS Motor

Neutral

326

15,495

13,390

15,948

6.9

7.1

12.8

16.5

25.6

19.7

6.4

5.0

26.3

27.2

1.2

1.0

Amara Raja Batteries

Buy

999

1,174

17,065

5,429

6,471

17.5

17.6

35.3

43.5

28.3

23.0

6.5

5.3

25.3

24.8

3.0

2.4

Exide Industries

Neutral

188

15,980

7,439

8,307

15.0

8.1

9.3

23.2

20.2

3.3

2.9

14.3

16.7

1.7

1.5

Apollo Tyres

Neutral

214

10,875

12,877

14,504

14.3

13.9

21.4

23.0

10.0

9.3

1.6

1.4

16.4

15.2

1.0

0.9

Ceat

Accumulate

1,043

1,119

4,219

7,524

8,624

13.0

12.7

131.1

144.3

8.0

7.2

1.5

1.2

19.8

18.6

0.6

0.5

JK Tyres

Neutral

144

3,274

7,455

8,056

15.0

21.8

24.5

6.6

5.9

1.4

1.1

22.8

21.3

0.5

Swaraj Engines

Neutral

1,216

1,510

660

810

15.2

16.4

54.5

72.8

22.3

16.7

7.0

6.3

31.5

39.2

2.1

1.7

Subros

Neutral

137

823

1,488

1,681

11.7

11.9

6.4

7.2

21.4

19.1

2.3

2.1

10.8

11.4

0.8

0.7

Indag Rubber

Neutral

178

467

286

326

19.8

16.8

11.7

13.3

15.2

13.4

2.6

2.4

17.8

17.1

1.3

1.1

Capital Goods

ACE

Neutral

426

709

814

4.1

4.6

1.4

2.1

30.8

20.5

1.3

1.2

4.4

6.0

0.8

0.7

BEML

Accumulate

1,026

1,157

4,273

3,451

4,055

6.3

9.2

31.4

57.9

32.7

17.7

2.0

1.8

6.3

10.9

1.4

1.2

Bharat Electronics

Buy

1,192

1,414

28,614

8,137

9,169

16.8

17.2

58.7

62.5

20.3

19.1

3.2

2.8

44.6

46.3

2.5

2.3

www.angelbroking.com

Stock Watch

September 15, 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

Accumulate

376

407

12,445

6,511

7,514

7.9

8.7

12.9

16.3

29.2

23.1

5.3

4.6

16.7

18.5

1.7

1.4

BGR Energy

Neutral

118

852

16,567

33,848

6.0

5.6

7.8

5.9

15.1

20.0

0.9

0.8

4.7

4.2

0.2

0.1

BHEL

Neutral

146

35,833

28,797

34,742

2.8

2.3

6.9

63.7

21.2

1.1

1.3

4.8

0.9

0.6

Blue Star

Accumulate

514

578

4,899

4,351

5,024

6.4

7.1

17.2

20.6

29.9

24.9

19.5

16.2

23.1

24.1

1.2

1.0

Crompton Greaves

Neutral

4,998

5,777

6,120

5.9

7.0

3.3

4.5

24.2

17.7

1.1

1.0

4.4

5.9

0.8

0.7

Greaves Cotton

Neutral

135

3,299

1,755

1,881

16.8

16.9

7.8

8.5

17.3

15.9

3.5

3.2

20.6

20.9

1.6

1.4

Inox Wind

Buy

198

286

4,404

5,605

6,267

15.7

16.4

24.8

30.0

8.0

6.6

2.2

1.6

25.9

24.4

0.7

0.6

KEC International

Neutral

127

3,261

9,294

10,186

7.9

8.1

9.9

11.9

12.8

10.7

1.9

1.6

15.6

16.3

0.6

0.5

Thermax

Neutral

824

9,816

5,421

5,940

7.3

25.7

30.2

32.1

27.3

3.9

3.5

12.2

13.1

1.7

1.6

VATech Wabag

Buy

559

681

3,045

3,136

3,845

8.9

9.1

26.0

35.9

21.5

15.6

2.7

2.3

13.4

15.9

0.9

0.7

Cement

ACC

Neutral

1,619

30,407

11,225

13,172

13.2

16.9

44.5

75.5

36.4

21.5

3.5

3.2

11.2

14.2

2.7

2.3

Ambuja Cements

Neutral

264

52,461

9,350

10,979

18.2

22.5

5.8

9.5

45.6

27.8

3.8

3.4

10.2

12.5

5.5

4.7

India Cements

Neutral

150

4,618

4,364

4,997

18.5

19.2

7.9

11.3

19.0

13.3

1.4

1.3

8.0

8.5

1.8

1.5

JK Cement

Neutral

803

5,612

4,398

5,173

15.5

17.5

31.2

55.5

25.7

14.5

3.1

2.7

12.0

15.5

1.8

1.5

J K Lakshmi Cement

Neutral

463

5,449

2,913

3,412

14.5

19.5

7.5

22.5

61.8

20.6

3.8

3.2

12.5

18.0

2.4

2.0

Orient Cement

Neutral

207

4,235

2,114

2,558

18.5

20.5

8.1

11.3

25.5

18.3

3.8

3.2

9.0

14.0

2.5

2.0

UltraTech Cement

Neutral

3,945

108,263

25,768

30,385

21.0

23.5

111.0

160.0

35.5

24.7

4.5

4.0

13.5

15.8

4.2

3.5

Construction

ITNL

Neutral

3,008

8,946

10,017

31.0

31.6

8.1

9.1

11.3

10.1

0.4

4.2

5.0

3.7

3.4

KNR Constructions

Buy

702

802

1,975

1,385

1,673

14.7

14.0

41.2

48.5

17.1

14.5

3.2

2.7

14.9

15.2

1.5

1.2

Larsen & Toubro

Buy

1,475

1,700

137,481

67,665

77,249

10.7

11.5

57.3

71.2

25.7

20.7

2.4

2.2

12.6

14.3

2.2

1.9

Gujarat Pipavav Port

Neutral

185

8,944

705

788

52.2

51.7

5.0

5.6

37.0

33.0

3.7

3.3

11.2

12.9

11.0

Nagarjuna Const.

Neutral

4,767

8,842

9,775

9.1

8.8

5.3

6.4

16.2

13.4

1.3

1.2

8.2

9.1

0.7

0.6

PNC Infratech

Buy

122

143

3,130

2,350

2,904

13.1

13.2

9.0

8.8

13.6

13.9

0.5

0.4

15.9

13.9

1.5

1.2

Simplex Infra

Neutral

336

1,660

6,829

7,954

10.5

31.4

37.4

10.7

9.0

1.1

1.0

9.9

13.4

0.7

0.6

Power Mech Projects

Neutral

478

703

1,801

2,219

12.7

14.6

72.1

113.9

6.6

4.2

1.2

1.0

16.8

11.9

0.4

0.3

Sadbhav Engineering

Neutral

297

5,090

3,598

4,140

10.3

10.6

9.0

11.9

33.0

24.9

3.5

3.0

9.9

11.9

1.7

1.4

NBCC

Neutral

249

14,919

7,428

9,549

7.9

8.6

8.2

11.0

30.3

22.6

1.5

1.2

28.2

28.7

1.7

1.3

MEP Infra

Neutral

708

1,877

1,943

30.6

29.8

3.0

4.2

14.5

10.4

7.0

4.7

0.6

1.8

1.6

SIPL

Neutral

103

3,614

1,036

1,252

65.5

66.2

(8.4)

(5.6)

3.8

4.4

(22.8)

(15.9)

11.7

9.8

www.angelbroking.com

Stock Watch

September 15, 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

260

8,744

1,725

1,935

16.0

19.1

11.4

13.9

22.8

18.7

3.1

3.0

13.4

15.3

3.9

3.5

Financials

Axis Bank

Neutral

602

143,754

58,081

66,459

3.5

32.4

44.6

18.6

13.5

2.5

2.1

13.6

16.5

Bank of Baroda

Neutral

168

38,779

19,980

23,178

1.8

11.5

17.3

14.6

9.7

1.7

1.4

8.3

10.1

Canara Bank

Neutral

312

16,922

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

288

325

8,408

2,225

2,688

2.9

29.7

34.6

9.7

8.3

1.6

1.3

16.1

16.8

Equitas Holdings

Buy

178

235

5,983

939

1,281

11.7

11.5

5.8

8.2

30.8

21.8

2.7

2.4

10.9

11.5

Federal Bank

Neutral

12,440

9,353

10,623

2.9

4.4

5.8

16.5

12.5

1.6

1.4

9.5

11.0

HDFC

Neutral

1,393

220,149

11,475

13,450

3.4

45.3

52.5

30.7

26.5

5.9

5.2

20.2

20.5

HDFC Bank

Accumulate

1,270

1,350

321,468

46,097

55,433

4.5

58.4

68.0

21.7

18.7

3.8

3.2

18.8

18.6

ICICI Bank

Neutral

272

157,988

39,029

45,903

3.3

16.7

16.3

16.7

2.0

1.8

10.1

12.4

LIC Housing Finance

Neutral

572

28,847

3,712

4,293

2.6

2.5

39.0

46.0

14.7

12.4

2.8

2.4

19.9

20.1

Punjab Natl.Bank

Neutral

142

27,854

23,532

23,595

2.3

2.4

6.8

12.6

20.9

11.3

3.2

2.3

3.3

6.5

South Ind.Bank

Neutral

3,214

6,435

7,578

2.5

2.7

3.1

8.8

7.7

1.1

1.0

10.1

11.2

St Bk of India

Neutral

258

199,969

88,650

98,335

2.6

13.5

18.8

19.1

13.7

1.8

1.6

7.0

8.5

Union Bank

Neutral

145

9,944

13,450

14,925

2.3

25.5

34.5

5.7

4.2

0.8

0.7

7.5

10.2

Yes Bank

Neutral

1,253

52,768

8,978

11,281

3.3

3.4

74.0

90.0

16.9

13.9

3.2

2.7

17.0

17.2

RBL Bank

Accumulate

297

325

10,981

1,783

2,309

2.6

12.7

16.4

23.4

18.1

2.6

2.3

12.8

13.3

FMCG

Asian Paints

Neutral

1,163

111,555

17,128

18,978

16.8

16.4

19.1

20.7

60.9

56.2

21.2

20.0

34.8

35.5

6.4

5.8

Britannia

Neutral

3,534

42,401

9,795

11,040

14.6

14.9

80.3

94.0

44.0

37.6

18.1

14.0

41.2

4.1

3.5

Colgate

Neutral

971

26,411

4,605

5,149

23.4

23.8

26.9

40.8

36.1

22.6

17.7

64.8

66.8

5.7

5.1

Dabur India

Neutral

293

51,481

8,315

9,405

19.8

20.7

8.1

9.2

36.1

31.8

10.1

8.3

31.6

31.0

5.8

5.1

GlaxoSmith Con*

Neutral

6,164

25,925

4,350

4,823

21.2

21.4

179.2

196.5

34.4

31.4

9.1

7.7

27.1

26.8

5.3

4.7

Godrej Consumer

Neutral

1,650

56,190

10,235

11,428

18.4

18.6

41.1

44.2

40.2

37.3

8.9

7.5

24.9

24.8

5.4

4.8

HUL

Neutral

909

196,643

35,252

38,495

17.6

17.4

20.4

21.9

44.5

41.5

36.6

32.1

82.2

77.3

5.5

5.0

ITC

Accumulate

252

283

304,184

40,059

44,439

39.0

39.2

9.1

10.1

27.7

25.0

7.5

6.6

27.2

26.5

7.1

6.4

Marico

Neutral

290

37,409

6,430

7,349

18.8

19.5

6.4

7.7

45.3

37.7

13.7

11.5

33.2

32.5

5.6

4.8

Nestle*

Neutral

6,302

60,764

10,073

11,807

20.7

21.5

124.8

154.2

50.5

40.9

20.7

18.7

34.8

36.7

6.0

5.1

Tata Global

Neutral

137

8,675

9,088

9.8

7.4

8.2

18.6

16.8

2.1

2.0

7.9

8.1

0.9

0.8

Procter & Gamble

Accumulate

6,727

7,369

21,836

2,939

3,342

23.2

23.0

146.2

163.7

46.0

41.1

103.0

98.8

25.3

23.5

6.9

6.0

Hygiene

www.angelbroking.com

Stock Watch

September 15, 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

HCL Tech^

Buy

776

1,000

109,425

49,242

57,168

20.5

55.7

64.1

13.9

12.1

2.8

2.2

20.3

17.9

2.1

1.7

Infosys

Buy

1,047

1,370

240,513

69,934

79,025

27.5

64.8

72.0

16.2

14.5

3.6

3.2

22.0

22.3

2.9

2.5

TCS

Buy

2,329

3,004

458,824

121,684

136,286

27.3

135.0

150.1

17.3

15.5

5.7

5.3

33.2

33.9

3.6

3.1

Tech Mahindra

Buy

466

700

45,278

30,347

33,685

17.0

37.5

41.3

12.4

11.3

2.7

2.3

21.8

20.7

1.2

1.0

Wipro

Buy

478

680

116,225

51,631

55,822

21.7

17.9

35.9

36.9

13.3

13.0

2.8

2.6

19.0

18.1

2.0

1.7

Media

D B Corp

Neutral

398

7,321

2,297

2,590

27.4

28.2

21.0

23.4

19.0

17.0

4.4

3.8

23.7

23.1

3.0

2.6

HT Media

Neutral

1,906

2,693

2,991

12.6

12.9

7.9

9.0

10.4

9.1

0.9

0.8

7.8

8.3

0.3

0.2

Jagran Prakashan

Buy

189

225

6,177

2,355

2,635

28.0

10.8

12.5

17.5

15.1

3.8

3.3

21.7

2.6

2.3

Sun TV Network

Neutral

481

18,954

2,850

3,265

70.1

71.0

26.2

30.4

18.4

15.8

4.7

4.2

24.3

25.6

5.8

5.0

Hindustan Media

Neutral

280

2,055

1,016

1,138

24.3

25.2

27.3

30.1

10.3

9.3

2.0

1.7

16.2

15.8

1.4

1.2

Ventures

TV Today Network

Buy

297

363

1,772

637

743

27.5

18.4

21.4

16.2

13.9

2.8

2.4

17.4

17.2

2.4

2.0

Metals & Mining

Coal India

Neutral

324

204,777

84,638

94,297

21.4

22.3

24.5

27.1

13.2

12.0

5.5

5.3

42.6

46.0

2.0

1.8

Hind. Zinc

Neutral

220

93,147

14,252

18,465

55.9

48.3

15.8

21.5

14.0

10.3

2.3

2.0

17.0

20.7

6.3

4.9

Hindalco

Neutral

143

29,581

107,899

112,095

7.4

8.2

9.2

13.0

15.6

11.0

0.8

0.7

4.8

6.6

0.8

0.7

JSW Steel

Neutral

1,749

42,283

53,201

58,779

16.1

16.2

130.6

153.7

13.4

11.4

1.8

1.6

14.0

14.4

1.6

1.3

NMDC

Neutral

104

41,273

6,643

7,284

44.4

47.7

7.1

7.7

14.7

13.5

1.3

1.2

8.8

9.2

4.0

3.6

SAIL

Neutral

19,845

47,528

53,738

(0.7)

2.1

(1.9)

2.6

18.5

0.5

(1.6)

3.9

1.3

1.2

Vedanta

Neutral

166

49,169

71,744

81,944

19.2

21.7

13.4

20.1

12.4

8.3

1.1

1.0

8.4

11.3

1.1

0.8

Tata Steel

Neutral

374

36,299

121,374

121,856

7.2

8.4

18.6

34.3

20.1

10.9

1.3

1.2

6.1

10.1

0.9

Oil & Gas

Cairn India

Neutral

192

36,082

9,127

10,632

4.3

20.6

8.8

11.7

21.9

16.5

0.7

3.3

4.2

5.3

4.4

GAIL

Neutral

387

49,122

56,220

65,198

9.3

10.1

27.1

33.3

14.3

11.6

1.3

1.2

9.3

10.7

1.1

0.9

ONGC

Neutral

248

212,390

137,222

152,563

15.0

21.8

19.5

24.1

12.7

10.3

1.1

1.0

8.5

10.1

1.8

1.6

Indian Oil Corp

Neutral

566

137,325

373,359

428,656

5.9

5.5

54.0

59.3

10.5

9.5

1.6

1.5

16.0

15.6

0.5

0.4

Reliance Industries

Neutral

1,045

338,981

301,963

358,039

12.1

12.6

87.7

101.7

11.9

10.3

1.2

1.1

10.7

11.3

1.6

1.3

Pharmaceuticals

Alembic Pharma

Neutral

629

11,864

3,483

4,083

20.2

21.4

24.3

30.4

25.9

20.7

5.9

4.7

25.5

25.3

3.3

2.8

Aurobindo Pharma

Accumulate

783

877

45,819

15,720

18,078

23.7

41.4

47.3

18.9

16.6

4.9

3.8

29.6

26.1

3.1

2.7

Sanofi India*

Neutral

4,287

9,873

2,357

2,692

17.3

153.5

169.2

27.9

25.3

4.7

3.8

25.8

28.4

3.9

3.2

Cadila Healthcare

Neutral

390

39,962

11,126

13,148

22.0

17.1

20.0

22.8

19.5

5.9

4.7

28.8

26.6

3.5

2.9

Cipla

Reduce

577

490

46,338

15,378

18,089

17.4

18.4

21.6

27.2

26.7

21.2

3.5

3.0

13.7

15.2

3.2

2.6

www.angelbroking.com

Stock Watch

September 15, 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

Dr Reddy's

Neutral

3,163

52,406

16,043

18,119

23.1

24.7

126.0

157.8

25.1

20.0

3.7

3.2

15.7

17.1

3.2

2.8

Dishman Pharma

Sell

173

2,799

1,718

1,890

22.7

22.8

9.5

11.3

18.3

15.4

1.8

1.6

10.1

10.9

2.1

1.8

GSK Pharma*

Neutral

2,959

25,066

3,528

3,811

16.6

18.8

51.8

59.4

57.1

49.8

15.3

15.2

26.3

30.6

6.9

6.5

Indoco Remedies

Sell

317

225

2,919

1,112

1,289

18.2

13.2

15.6

24.0

20.3

4.3

3.6

19.2

2.7

2.3

Ipca labs

Accumulate

578

613

7,296

3,303

3,799

15.3

17.3

19.7

33.4

29.4

2.9

2.7

9.1

9.4

2.3

2.0

Lupin

Buy

1,535

1,809

69,202

15,912

18,644

26.4

26.7

58.1

69.3

26.4

22.2

5.1

4.2

21.4

20.9

4.4

3.6

Sun Pharma

Buy

780

944

187,806

31,129

35,258

30.0

30.9

28.0

32.8

27.9

23.8

4.3

3.6

18.7

18.9

5.7

4.8

Power

Tata Power

Neutral

20,379

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

155

128,176

86,605

95,545

17.5

20.8

11.8

13.4

13.2

11.6

1.3

10.5

11.1

2.8

Power Grid

Neutral

179

93,776

25,763

29,762

74.3

73.1

14.8

17.3

12.1

10.4

1.9

1.7

16.9

17.5

7.9

7.5

Real Estate

MLIFE

Buy

435

522

1,785

1,152

1,300

22.7

24.6

29.9

35.8

14.6

12.2

1.1

1.0

7.6

8.6

2.2

1.9

Telecom

Bharti Airtel

Neutral

319

127,637

105,086

114,808

34.5

34.7

12.2

16.4

26.2

19.5

1.8

1.7

6.8

8.4

2.1

1.8

Idea Cellular

Neutral

30,121

40,133

43,731

37.2

37.1

6.4

6.5

13.1

12.9

1.1

1.0

8.2

7.6

1.8

1.5

zOthers

Abbott India

Neutral

4,575

9,721

3,153

3,583

14.1

14.4

152.2

182.7

30.1

25.0

147.6

126.0

25.6

26.1

2.8

2.4

Bajaj Electricals

Accumulate

268

306

2,710

5,099

5,805

5.6

5.9

11.4

14.6

23.6

18.4

3.2

2.8

13.4

15.1

0.5

Finolex Cables

Neutral

430

6,570

2,883

3,115

12.0

12.1

14.2

18.6

30.3

23.1

16.1

14.1

15.8

14.6

2.0

1.8

Goodyear India*

Buy

595

684

1,373

1,598

1,704

10.4

10.2

49.4

52.6

12.1

11.3

55.6

48.8

18.2

17.0

0.5

71.9

Hitachi

#VALUE!

1,445

3,929

2,081

2,433

8.8

8.9

33.4

39.9

43.3

36.2

34.9

29.1

22.1

21.4

Jyothy Laboratories

Neutral

325

5,888

1,440

2,052

11.5

13.0

8.5

10.0

38.3

32.5

9.3

8.6

18.6

19.3

4.3

3.0

Page Industries

Neutral

14,767

16,471

2,450

3,124

20.1

17.6

299.0

310.0

49.4

47.6

328.9

251.1

47.1

87.5

6.6

5.2

Relaxo Footwears

Neutral

431

5,168

2,085

2,469

9.2

8.2

7.6

8.0

57.0

54.2

22.1

18.9

17.9

18.8

2.6

2.2

Siyaram Silk Mills

Buy

1,245

1,469

1,167

1,799

2,040

11.6

11.7

104.9

122.4

11.9

10.2

2.0

1.7

16.4

0.8

0.7

Styrolution ABS India*

Neutral

577

1,015

1,440

1,537

9.2

9.0

40.6

42.6

14.2

13.5

36.3

33.0

12.3

11.6

0.6

TVS Srichakra

Accumulate

2,714

2,932

2,078

2,304

2,614

13.7

13.8

231.1

266.6

11.7

10.2

304.9

240.1

33.9

29.3

0.9

0.7

HSIL

Neutral

341

2,463

2,384

2,515

15.8

16.3

15.3

19.4

22.3

17.6

22.1

19.0

7.8

9.3

1.2

1.1

Kirloskar Engines India

Neutral

295

4,266

2,554

2,800

9.9

10.0

10.5

12.1

28.1

24.4

11.8

11.1

10.7

11.7

1.3

1.1

Ltd

M M Forgings

Neutral

422

509

546

608

20.4

20.7

41.3

48.7

10.2

8.7

57.8

51.2

16.6

17.0

0.8

0.7

Banco Products (India)

Neutral

229

1,640

1,353

1,471

12.3

12.4

14.5

16.3

15.8

14.1

21.8

19.7

14.5

14.6

1.1

115.5

Competent Automobiles Neutral

203

125

1,137

1,256

3.1

2.7

28.0

23.6

7.2

8.6

39.0

35.2

14.3

11.5

0.1

www.angelbroking.com

Stock Watch

September 15, 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

Nilkamal

Neutral

1,328

1,982

1,995

2,165

10.7

10.4

69.8

80.6

19.0

16.5

75.9

65.9

16.6

16.5

1.0

0.9

Visaka Industries

Neutral

199

316

1,051

1,138

10.3

10.4

21.0

23.1

9.5

8.6

25.5

23.9

9.0

9.2

0.6

0.5

Transport Corporation of

Neutral

184

1,408

2,671

2,911

8.5

8.8

13.9

15.7

13.3

11.7

1.8

1.6

13.7

13.8

0.6

India

Elecon Engineering

Accumulate

637

1,482

1,660

13.7

14.5

3.9

5.8

15.0

10.1

3.5

3.2

7.8

10.9

0.7

Surya Roshni

Neutral

196

859

3,342

3,625

7.8

7.5

17.3

19.8

11.3

9.9

21.5

17.3

10.5

10.8

0.5

MT Educare

Neutral

123

491

366

417

17.7

18.2

9.4

10.8

13.2

11.4

2.9

2.5

22.2

22.3

1.3

1.1

Radico Khaitan

Buy

106

125

1,405

1,659

1,802

13.0

13.2

6.3

7.4

16.7

14.3

1.4

1.3

8.6

9.3

1.3

1.2

Garware Wall Ropes

Neutral

517

1,132

873

938

12.9

13.1

30.9

34.9

16.7

14.8

2.6

2.3

15.7

15.2

1.2

1.1

Wonderla Holidays

Neutral

400

2,261

287

355

38.0

40.0

11.3

14.2

35.4

28.2

5.1

4.4

21.4

23.9

7.6

6.1

Linc Pen & Plastics

Neutral

285

421

382

420

9.3

9.5

13.5

15.7

21.1

18.1

3.6

3.1

17.1

17.3

1.2

1.0

The Byke Hospitality

Neutral

158

634

287

384

20.5

7.6

10.7

20.8

14.8

4.3

3.5

20.7

23.5

2.2

1.7

Interglobe Aviation

Neutral

862

31,048

21,122

26,005

14.5

27.6

110.7

132.1

7.8

6.5

46.6

33.3

168.5

201.1

1.5

1.1

Coffee Day Enterprises

Neutral

239

4,914

2,964

3,260

20.5

21.2

4.7

8.0

29.8

2.8

2.5

5.5

8.5

2.0

1.8

Ltd

Navneet Education

Neutral

104

2,488

1,062

1,147

24.0

6.1

6.6

17.2

15.8

3.5

3.1

20.6

19.8

2.4

2.2

Navkar Corporation

Buy

200

265

2,846

408

612

42.9

42.3

6.8

11.5

29.5

17.4

2.0

1.8

6.9

10.5

7.7

5.2

UFO Moviez

Neutral

447

1,233

619

685

33.2

33.4

30.0

34.9

14.9

12.8

2.1

1.8

13.8

13.9

1.6

1.3

VRL Logistics

Neutral

291

2,657

1,902

2,119

16.7

16.6

14.6

16.8

20.0

17.3

4.4

3.9

21.9

22.2

1.5

1.3

Team Lease Serv.

Neutral

1,094

1,870

3,229

4,001

1.5

1.8

22.8

32.8

48.1

33.3

5.2

4.5

10.7

13.4

0.5

0.4

S H Kelkar & Co.

Neutral

311

4,498

1,036

1,160

15.1

15.0

6.1

7.2

50.9

43.3

5.4

5.0

10.7

11.5

4.1

3.6

Quick Heal

Neutral

226

1,579

408

495

27.3

27.0

7.7

8.8

29.1

25.7

2.7

9.3

10.6

3.0

2.5

Narayana Hrudaya

Neutral

324

6,621

1,873

2,166

11.5

11.7

2.6

4.0

122.5

81.7

7.5

6.8

6.1

8.3

3.5

3.0

Manpasand Bever.

Neutral

706

3,534

836

1,087

19.6

19.4

16.9

23.8

41.8

29.7

5.0

4.4

12.0

14.8

4.0

3.0

Parag Milk Foods

Neutral

336

2,822

1,919

2,231

9.3

9.6

9.5

12.9

35.5

25.9

5.5

4.6

15.5

17.5

1.6

1.4

Mirza International

Buy

113

1,065

1,024

1,148

18.0

6.9

8.0

12.8

11.1

2.2

1.8

16.6

16.2

1.2

1.1

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on September 14, 2016

www.angelbroking.com

Market Outlook

September 15, 2016

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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