Market Outlook

October 17, 2017

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

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

BSE Sensex

0.6

201

32,634

Nifty

0.6

10,231

The US indices moved modestly higher over the course of the trading session on

Mid Cap

0.5

16,050

Monday, adding to the gains posted last week. With the continued upward move,

the major averages once again climbed to new record closing highs. The major

Small Cap

0.3

16,976

averages all finished the day in positive territory. The Dow advanced 0.4 percent to

Bankex

0.0

27,748

22,957, the Nasdaq climbed 0.3 percent to 6,624 and the S&P 500 rose 0.2

percent to 2,558.

Global Indices

Chg (%)

(Pts)

(Close)

U.K. stocks swung between small gains and losses on Monday, but ended slightly

Dow Jones

0.4

22,957

lower with medical firm ConvaTec leading decliners after wiping out a quarter of its

Nasdaq

0.3

6,624

market value. The FTSE 100 index closed 0.1% lower at 7,527, after a session where

FTSE

(0.1)

(8)

7,527

it traded within a range of roughly 30 points.

Nikkei

(0.0)

(5)

21,251

Hang Seng

0.1

28,716

In India, Market sentiment was buoyant in a truncated trading week ahead of Diwali

and encouraging Q2 earnings from Reliance Industries. BSE Sensex rose 201 points

Shanghai Com

(0.3)

(12)

3,367

to close at an all-time high of 32,634 as investor optimism climbed following

International Monitory Fund (IMF) head Christine Lagarde said that said the Indian

Advances / Declines

BSE

NSE

economy is on a very solid track in the mid-term. The broader NSE Nifty ended at a

Advances

1,296

814

fresh life-time high at 10,231 points, showing gains of 0.6%, in its record setting

spree for the second session.

Declines

1,435

920

Unchanged

132

Result Review

Godrej Agrovet - IPO review

Volumes (` Cr)

Detailed analysis is on Pg2

BSE

3,458

NSE

29,905

Investor’s Ready Reckoner

Key Domestic & Global Indicator

#Net Inflows (` Cr)

Net

Mtd

Ytd

Stock Watch: Latest investment recommendations on 150+ stocks

FII

(297)

(2,852)

33,67

Refer Pg7 onwards

MFs

5,182

91,52

Top Picks

CMP

Target

Upside

Company

Sector

Rating

Top Gainer

Price (`)

Chg (%)

(`)

(%)

Jmfinancil

186

9.1

Blue Star

Capital Goods

Accumulate

791

867

9.6

Dewan Housing Finance Financials

Accumulate

558

610

9.3

Oberoirlty

479

7.2

Asian Granito

Other

Buy

490

570

16.2

Federalbnk

125

6.5

Navkar Corporation

Other

Buy

193

265

37.7

Gujgas

931

5.5

KEI Industries

Capital Goods

Buy

330

380

15.3

More Top Picks on Pg5

Idea

5.3

Key Upcoming Events

Top Loser

Price (`)

Chg (%)

Consensus

Date

Region

Event Description

Reading

Expectations

Sparc

369

(4.1)

Oct17, 2017

Industrial Production

(0.90)

0.20

Bomdyeing

199

(3.9)

Oct17, 2017

Euro Zone Euro-Zone CPI (YoY)

1.50

Unitech

(3.5)

Oct17, 2017

CPI (YoY)

2.90

3.00

Bajfinance

1,889

(3.4)

Oct18, 2017

Jobless claims change

(2.80)

Oct18, 2017

Housing Starts

1,180.00

1,175.00

Rnaval

(3.3)

More Events on Pg7

#as on 16^th Oct, 2017

www.angelbroking.com

Market Outlook

October 17, 2017

Result Review

Godrej Agrovet - IPO review

Shares of Godrej Agrovet surged 37% on its debut yesterday and ended the day

with 29% gains at `595 on BSE vs. the IPO price of `460 per share. GAPL had

touched a high of `630 implying 37% returns on IPO price. Godrej Agrovet

Limited (GAVL) is a leading Agri-business company operating across five different

business verticals i.e. Animal Feed, Crop Protection, Oil Palm, Dairy and Poultry &

Processed Foods. GAVL is the largest crude palm producer in India. Company is

the 4th largest animal feed producer in Bangladesh through its 50:50 JV ACI

Godrej.

We had a subscribe rating on GAPL given its diversified business, good ROE

profile and favorable business mix that is likely to bring more upside in margins.

The stock at the CMP of `595 is trading at 25.0x of its FY19E EPS. We believe that

the stock is still reasonably valued and that there is more upside in the stock, we

advice to hold the stock for long term.

Economic and Political News

 WPI inflation falls to 2.60% in September

 Govt plans mega Rs 1.2L cr social security scheme before 2019 polls

 India's infra fund to get $1 bn boost from Abu Dhabi

 New Sebi panel to review stock exchange norms

 Air India privatization: Govt said to prefer an Indian buyer

Corporate News

 Bharat Financial shares hit 7-year high as analysts cheer IndusInd Bank

merger

 After stents and knee implants, govt plans to put a price cap on non-essential

drugs

 Cadila, Aurobindo to lead Q2 growth in pharma space

 Coal shortage shuts 40% thermal power capacity in Rajasthan, Maharashtra

 Fund managers take value calls on pharma

 TeamLease to acquire staffing company Evolve Technologies

www.angelbroking.com

Market Outlook

October 17, 2017

Quarterly Bloomberg Brokers Consensus Estimate

Bajaj Auto Ltd - Oct 17, 2017

Particulars ( ` cr)

2QFY18E

2QFY17 y-o-y (%)

1QFY18

q-o-q (%)

Sales

6,592

5,499

19.9

6,061

8.8

EBIDTA

1,232

1,097

12.3

1,252

(1.6)

18.7

19.9

20.7

PAT

1,091

908

20.1

1,024

6.5

ACC Ltd - Oct 17, 2017

Particulars ( ` cr)

2QFY18E

2QFY17 y-o-y (%)

1QFY18

q-o-q (%)

Sales

2,842

3,331

(14.7)

3,293

(13.7)

EBIDTA

390

534

(27.0)

478

(18.3)

13.7

16.0

14.5

PAT

183

301

(39.2)

256

(28.4)

Wipro Ltd - Oct 17, 2017

Particulars ( ` cr)

2QFY18E

2QFY17 y-o-y (%)

1QFY18

q-o-q (%)

Sales

13,842

13,242

4.5

13,461

2.8

EBIDTA

2,661

2,599

2.4

2,602

2.3

19.2

19.6

19.3

PAT

2,072

2,030

2.1

2,010

3.1

Axis Bank - Oct 17, 2017

Particulars ( `cr)

2QFY18E

2QFY17 y-o-y (%)

1QFY18

q-o-q (%)

PAT

1,318

1,265

4.2

1,626

(18.9)

www.angelbroking.com

Market Outlook

October 17, 2017

Top Picks

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

Strong growth in domestic business due to its leade`hip in

Alkem Laboratories

22,041

1,843

2,079

12.8

acute therapeutic segment. Alkem expects to launch more

products in USA, which bodes for its international business.

We expect the company would report strong profitability

Asian Granito

1,476

490

570

16.2

owing to better product mix, higher B2C sales and

amalgamation synergy.

Favorable outlook for the AC industry to augur well for

Cooling products business which is out pacing the market

Blue Star

7,578

791

867

9.6

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 presence

Dewan Housing Finance

17,504

558

610

9.3

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

7,750

128

180

40.4

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

2,564

330

380

15.3

sales and higher exports to boost the revenues and

profitability

Expected to benefit from the lower capex requirement and

Music Broadcast

2,242

393

434

10.4

15 year long radio broadcast licensing.

Massive capacity expansion along with rail advantage at

Navkar Corporation

2,745

193

265

37.7

ICD as well CFS augur well for the company

Strong brands and distribution network would boost growth

Siyaram Silk Mills

2,493

2,660

2,856

7.4

going ahead. Stock currently trades at an inexpensive

valuation.

Market leaderhip in Hindi news genre and no. 2 viewe`hip

ranking in English news genre, exit from the radio business,

TV Today Network

2,151

361

435

20.7

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 plant will

Maruti Suzuki

2,37,057

7,848

8,658

10.3

also enable higher operating leverage which will be margin

accretive.

GIC Housing

2,734

508

655

29.0

We expect loan book to grow at 24.3% over next two year;

change in borrowing mix will help in NIM improvement..

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

October 17, 2017

Key Upcoming Events

Result Calendar

Date

Company

October 17, 2017

Axis Bank, ACC, Bajaj Auto, Wipro

October 18, 2017

Ultra Tech cement

Source: Bloomberg, Angel Research

Global economic events release calendar

Bloomberg Data

Date

Time

Country

Event Description

Unit

Period

Last Reported

Estimated

Oct 17, 2017

6:45 PMUS

Industrial Production

Sep

(0.90)

0.20

2:30 PMEuro Zone Euro-Zone CPI (YoY)

Sep F

1.50

2:00 PMUK

CPI (YoY)

% Change

Sep

2.90

3.00

Oct 18, 2017

2:00 PMUK

Jobless claims change

% Change

Sep

(2.80)

6:00 PMUS

Housing Starts

Thousands

Sep

1,180.00

1,175.00

6:00 PMUS

Building permits

Thousands

Sep

1,272.00

1,240.00

Oct 19, 2017

6:00 PMUS

Initial Jobless claims

Thousands

Oct 14

243.00

240.00

7:30 AMChina

Industrial Production (YoY)

% Change

Sep

6.00

6.50

7:30 AMChina

Real GDP (YoY)

% Change

6.90

6.80

Oct 20, 2017

7:30 PMUS

Existing home sales

Million

Sep

5.35

5.30

Oct 23, 2017

7:30 PMEuro Zone Euro-Zone Consumer Confidence

Value

Oct A

(1.20)

Oct 24, 2017

1:00 PMGermany PMI Manufacturing

Value

Oct P

60.60

1:00 PMGermany PMI Services

Value

Oct P

55.60

Oct 25, 2017

2:00 PMUK

GDP (YoY)

% Change

3Q A

1.50

7:30 PMUS

New home sales

Thousands

Sep

560.00

550.00

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

October 17, 2017

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

10.0

6.0

9.1

5.1

8.8

9.0

5.0

4.4

4.3

8.0

7.9

4.2

7.6

7.5

8.0

7.3

7.2

4.0

3.5

7.0

3.2

2.9

7.0

6.1

3.0

2.4

5.7

6.0

2.0

1.2

0.9

5.0

1.0

4.0

3.0

(1.0)

(0.2)

Source: CSO, Angel Research

Source: MOSPI, Angel Research

Exhibit 3: Monthly CPI inflation trends

Exhibit 4: Manufacturing and services PMI

56.0

Mfg. PMI

Services PMI

(%)

4.5

4.2

54.0

3.9

4.0

3.6

3.7

3.4

52.0

3.2

3.3

3.5

3.0

50.0

3.0

2.2

2.4

48.0

2.5

2.0

46.0

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

3.50

(10.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Market Outlook

October 17, 2017

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

76,892

3.3

18.1

24.8

Russia

Micex

2,106

2.6

8.1

6.9

India

Nifty

10,231

1.5

3.4

19.3

China

Shanghai Composite

3,378

0.4

5.5

12.7

South Africa

Top 40

51,713

4.2

9.6

15.1

Mexico

Mexbol

49,721

(0.4)

(2.6)

4.9

Indonesia

LQ45

991

1.9

1.4

5.5

Malaysia

KLCI

1,754

(1.8)

(0.2)

5.3

Thailand

SET 50

1,105

5.4

10.6

15.5

USA

Dow Jones

22,957

3.2

5.7

26.1

FTSE

7,527

3.2

1.7

7.5

Japan

Nikkei

21,256

7.5

5.8

26.1

Germany

DAX

13,004

3.7

3.4

21.6

France

CAC

5,363

2.5

3.6

17.7

Source: Bloomberg, Angel Research, p68in4

www.angelbroking.com

Stock Watch

October 17, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Agri / Agri Chemical

Rallis

Reduce

237

209

4,602

1,873

2,099

15.0

9.5

10.5

24.9

22.5

3.8

3.4

15.8

16.0

2.4

2.1

United Phosphorus

Neutral

812

41,265

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

Neutral

127

37,255

23,339

27,240

10.1

10.8

4.7

6.2

27.4

20.5

5.5

4.8

20.0

23.6

1.6

1.3

Bajaj Auto

Neutral

3,222

93,228

23,936

27,955

19.5

20.1

142.7

167.3

22.6

19.3

4.9

4.4

21.8

22.8

3.5

2.9

Bharat Forge

Buy

643

875

29,935

7,637

8,755

21.7

23.2

36.1

47.3

17.8

13.6

3.2

2.7

18.5

20.8

3.8

3.2

Eicher Motors

Neutral

31,740

86,404

19,043

22,837

19.5

19.9

835.4

1,019.0

38.0

31.2

14.2

10.9

40.9

37.8

4.4

3.6

Gabriel India

Neutral

200

2,871

1,782

2,033

9.7

10.2

7.1

8.9

28.2

22.6

5.7

4.8

21.0

22.2

1.6

1.3

Hero Motocorp

Accumulate

3,774

4,129

75,361

32,239

36,878

16.0

15.6

184.4

206.5

20.5

18.3

6.4

5.6

31.3

30.7

2.1

1.8

Jamna Auto Industries Neutral

2,283

1,441

1,662

14.4

14.8

13.9

17.6

4.1

3.3

1.1

0.9

30.0

31.0

1.6

1.3

Mahindra and Mahindra Neutral

1,367

84,922

46,971

53,816

13.6

14.0

67.7

79.8

20.2

17.1

2.9

2.6

15.0

15.9

1.7

1.4

Maruti

Accumulate

7,848

8,658

237,057

81,825

101,245

15.0

283.5

356.0

27.7

22.0

6.1

4.9

21.9

22.4

2.6

2.0

Minda Industries

Neutral

837

7,229

4,328

5,084

11.0

11.9

27.3

36.4

30.7

23.0

6.5

5.1

23.1

25.6

1.8

1.5

Motherson Sumi

Neutral

355

74,628

55,937

64,445

10.8

11.4

16.9

21.1

21.0

16.8

4.7

4.8

25.2

25.4

1.4

1.2

Tata Motors

Neutral

437

126,047

303,167

343,649

11.8

13.8

33.1

54.7

13.2

8.0

2.2

1.7

16.9

23.0

0.5

0.4

TVS Motor

Neutral

700

33,275

13,992

16,216

9.0

9.4

17.1

20.3

41.1

34.5

10.9

8.4

29.7

27.7

2.3

1.9

Amara Raja Batteries

Buy

681

858

11,631

6,140

7,122

14.3

15.6

29.3

39.0

23.2

17.5

4.0

3.3

17.1

19.0

1.9

1.6

Exide Industries

Neutral

205

17,412

8,689

9,854

15.1

15.2

9.7

11.0

21.2

18.6

3.8

3.3

15.7

16.1

1.7

1.5

Apollo Tyres

Neutral

242

12,334

15,739

17,326

13.3

14.6

20.4

26.7

11.9

9.1

1.4

1.3

20.4

26.7

1.0

0.9

Ceat

Neutral

1,732

7,005

6,661

7,717

11.1

14.2

116.2

178.2

14.9

9.7

2.6

2.2

15.2

21.3

1.2

1.0

JK Tyres

Neutral

150

3,391

8,318

9,239

16.2

16.4

21.0

27.5

7.1

5.4

1.4

1.1

19.1

20.4

0.9

0.7

Swaraj Engines

Neutral

2,045

2,540

788

889

16.4

16.5

71.6

81.0

28.6

25.3

8.2

7.7

29.6

31.0

2.9

2.5

Subros

Neutral

246

1,476

1,855

2,135

11.6

11.8

10.3

14.7

24.0

16.8

3.7

3.1

15.8

19.1

1.0

0.9

Capital Goods

BEML

Neutral

1,729

7,199

4,286

5,194

7.1

8.2

42.9

58.1

40.3

29.8

3.3

3.0

7.6

8.7

1.7

1.4

Bharat Electronics

Neutral

172

42,187

10,258

12,470

19.6

19.5

7.3

8.6

23.5

20.0

0.5

0.4

20.4

21.9

3.6

2.9

Voltas

Neutral

530

17,552

6,778

8,004

9.6

11.0

17.1

22.4

31.0

23.7

7.4

6.5

17.7

19.8

2.3

1.9

BHEL

Neutral

30,858

33,200

39,167

6.8

9.5

6.2

11.2

13.6

7.5

0.6

4.6

8.0

0.5

0.4

Blue Star

Accumulate

791

867

7,578

5,220

6,207

6.3

6.6

16.8

22.3

47.1

35.5

9.4

8.3

19.9

23.3

1.4

1.2

CG Power and Industrial

Neutral

4,901

6,555

7,292

7.5

0.8

7,820.0

97.8

1.2

0.1

1.2

0.8

Solutions

Greaves Cotton

Neutral

132

3,220

1,778

1,993

14.7

15.1

8.1

9.1

16.3

14.5

3.7

3.4

21.8

23.6

1.6

1.4

www.angelbroking.com

Stock Watch

October 17, 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

Buy

299

350

7,686

9,779

11,113

9.4

9.8

14.2

18.2

21.1

16.4

4.0

3.3

21.1

22.1

1.0

0.9

KEI Industries

Buy

330

380

2,564

3,001

3,391

10.0

13.0

16.1

25.3

20.5

4.6

3.8

18.2

18.7

1.0

0.9

Thermax

Neutral

970

11,561

4,125

4,747

10.3

10.8

26.7

31.5

36.3

30.8

4.1

3.7

11.2

12.0

2.5

2.2

VATech Wabag

Buy

587

681

3,203

3,867

4,126

9.6

10.0

34.9

39.8

16.8

14.7

2.8

2.4

17.7

17.5

0.8

Cement

ACC

Neutral

1,785

33,518

12,255

13,350

13.5

14.3

58.0

66.2

30.8

27.0

3.6

3.4

11.5

12.2

2.7

2.5

Ambuja Cements

Neutral

279

55,479

10,250

11,450

17.5

19.0

7.2

8.3

38.8

33.7

2.8

2.6

7.0

7.8

5.2

4.6

India Cements

Neutral

179

5,514

6,135

6,750

14.8

15.2

8.5

11.5

21.1

15.6

1.0

4.8

6.2

1.2

1.1

JK Cement

Neutral

951

6,651

4,150

4,775

19.2

20.0

49.0

63.5

19.4

15.0

3.1

2.6

17.0

18.5

2.0

1.7

J K Lakshmi Cement

Neutral

392

4,609

3,422

3,757

15.5

17.0

13.5

23.2

29.0

16.9

3.0

2.6

10.8

15.5

1.7

1.5

Orient Cement

Neutral

155

3,174

2,215

3,233

16.8

17.0

5.9

6.9

26.3

22.5

2.0

1.9

10.8

10.1

2.4

1.6

UltraTech Cement

Neutral

4,004

109,929

28,250

35,150

20.2

23.5

77.5

122.2

51.7

32.8

4.4

4.0

9.6

14.8

4.4

3.5

Construction

KNR Constructions

Neutral

214

3,006

1,846

2,203

14.5

12.1

13.7

17.7

15.7

1.0

0.8

17.5

16.7

1.7

1.4

Larsen & Toubro

Neutral

1,145

160,342

95,787

109,476

10.2

11.6

44.5

50.8

25.8

22.6

3.2

3.0

12.9

13.1

2.2

2.0

Gujarat Pipavav Port

Neutral

142

6,867

739

842

61.6

62.7

5.1

6.2

27.9

23.1

3.5

3.4

12.7

14.9

8.8

7.6

PNC Infratech

Neutral

152

3,887

2,040

2,935

13.0

6.4

9.0

23.7

16.8

0.6

0.5

9.7

12.2

1.9

1.4

Simplex Infra

Neutral

460

2,276

6,012

6,619

11.6

11.7

21.1

31.0

21.9

14.9

1.5

1.4

6.5

8.6

0.9

0.8

Sadbhav Engineering

Accumulate

279

298

4,792

3,823

4,426

10.7

10.8

10.3

11.8

27.1

23.7

3.3

2.9

10.1

10.5

1.6

1.4

NBCC

Neutral

240

21,560

9,099

12,706

6.4

7.3

9.6

32.9

25.0

1.5

1.2

27.5

30.5

2.2

1.6

MEP Infra

Neutral

100

1,620

2,403

2,910

18.3

16.8

2.4

6.1

42.4

16.4

16.1

10.8

35.2

55.8

1.8

1.5

SIPL

Neutral

3,459

2,060

2,390

46.8

47.7

(5.8)

(3.1)

3.7

4.2

(14.2)

(2.3)

6.4

6.0

Engineers India

Neutral

151

10,199

1,795

2,611

21.1

22.4

5.9

8.1

25.7

18.7

1.8

12.9

16.1

4.1

2.6

Financials

Axis Bank

Accumulate

521

580

124,843

32,558

35,843

3.5

3.2

27.8

41.0

18.7

12.7

2.0

1.8

11.4

14.9

Bank of Baroda

Neutral

138

31,809

22,533

26,079

2.4

12.0

20.9

11.5

6.6

0.8

0.7

6.6

11.0

Canara Bank

Neutral

307

18,361

17,925

20,235

2.0

2.1

18.5

36.5

16.6

8.4

0.6

3.4

6.2

Can Fin Homes

Buy

549

2,128

7,313

586

741

3.5

107.8

141.0

5.1

3.9

1.1

0.9

24.1

25.6

Cholamandalam Inv. &

Accumulate

1,127

1,230

17,619

2,826

3,307

6.3

53.7

64.6

21.0

17.5

3.6

3.1

18.3

18.9

Fin. Co.

Dewan Housing Finance Accumulate

558

610

17,504

2,676

3,383

2.4

2.7

37.4

49.7

14.9

11.2

2.0

1.7

13.8

16.2

Equitas Holdings

Buy

153

235

5,184

1,125

1,380

9.6

9.8

1.5

6.0

102.0

25.5

2.3

2.2

2.4

8.2

Federal Bank

Neutral

125

24,321

4,896

5,930

2.8

3.1

5.4

7.6

23.3

16.5

2.0

1.8

8.5

11.0

www.angelbroking.com

Stock Watch

October 17, 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

508

655

2,734

376

477

3.6

3.7

33.0

40.0

15.4

12.7

2.8

2.3

20.0

23.0

HDFC Bank

Neutral

1,857

479,403

55,236

63,253

4.5

4.4

68.9

82.4

27.0

22.5

4.7

3.9

18.7

18.5

ICICI Bank

Accumulate

274

315

175,834

42,361

51,378

3.6

3.9

18.4

25.7

14.9

10.7

1.6

11.3

15.0

Karur Vysya Bank

Buy

128

180

7,750

3,289

3,630

3.7

3.9

10.8

14.1

11.8

9.1

1.4

1.3

12.5

14.7

LIC Housing Finance

Neutral

658

33,222

4,895

6,332

3.4

3.7

50.7

66.8

13.0

9.9

2.6

2.1

21.7

23.8

Punjab Natl.Bank

Neutral

134

28,462

23,708

25,758

2.1

5.9

16.4

22.8

8.2

0.7

0.6

3.0

8.3

RBL Bank

Neutral

521

21,533

2,309

2,888

2.6

2.5

16.4

19.1

31.9

27.3

4.0

3.6

13.3

13.8

Repco Home Finance

Buy

638

825

3,994

496

597

4.4

4.2

38.5

48.7

16.6

13.1

3.0

2.5

19.6

20.6

South Ind.Bank

Neutral

5,846

3,195

3,567

3.0

3.1

3.0

3.8

10.7

8.5

1.1

1.0

10.5

11.9

St Bk of India

Neutral

252

217,743

105,827

121,056

2.4

2.5

16.1

25.6

15.7

9.9

1.2

1.1

6.6

9.9

Union Bank

Neutral

127

9,229

14,650

16,225

2.3

23.1

32.5

5.5

3.9

0.4

7.1

9.2

Yes Bank

Neutral

368

84,162

11,088

13,138

3.0

2.9

84.0

99.3

4.4

3.7

0.7

0.6

16.3

16.8

FMCG

Akzo Nobel India

Neutral

1,850

8,871

3,164

3,607

13.8

13.7

58.6

67.9

31.6

27.2

7.8

6.8

24.5

25.1

2.7

2.3

Asian Paints

Neutral

1,170

112,250

17,603

20,615

18.6

2,128.9

2,543.3

0.6

0.5

11.6

9.8

28.0

28.9

6.2

5.2

Britannia

Neutral

4,544

54,549

9,690

11,278

14.8

15.4

84.0

101.0

54.1

45.0

19.7

15.7

40.6

39.0

5.6

4.8

Colgate

Neutral

1,064

28,927

4,420

5,074

24.9

25.3

28.6

32.8

37.2

32.4

14.7

11.8

43.8

40.5

6.3

5.4

Dabur India

Neutral

322

56,747

8,346

9,344

19.6

19.9

7.8

9.0

41.3

35.8

8.3

7.5

25.2

24.8

6.4

5.6

GlaxoSmith Con*

Neutral

4,953

20,831

5,072

5,760

18.2

18.4

176.3

199.2

28.1

24.9

6.0

5.4

21.2

21.7

3.4

3.0

Godrej Consumer

Neutral

977

66,559

10,171

11,682

20.8

21.5

21.7

27.1

45.0

36.1

10.1

8.7

22.3

23.4

6.7

5.7

HUL

Neutral

1,279

276,912

37,077

41,508

20.3

21.8

5,189.9

6,318.5

0.3

0.2

39.0

33.3

74.8

82.0

7.3

6.5

ITC

Neutral

268

325,823

44,588

49,853

37.0

37.3

9.6

11.0

27.9

24.3

6.8

6.5

25.1

27.3

6.8

6.0

Marico

Neutral

317

40,914

6,788

7,766

18.5

19.2

7.1

8.5

44.7

37.3

15.6

13.4

36.9

38.0

5.9

5.1

Nestle*

Neutral

7,281

70,204

10,083

11,182

20.0

20.9

119.7

141.3

60.8

51.5

214.4

195.9

36.7

39.8

6.6

5.9

Tata Global

Neutral

210

13,228

7,121

7,641

11.9

12.3

6.9

8.0

30.4

26.2

2.0

1.9

6.8

7.2

1.7

1.5

Procter & Gamble

Neutral

8,670

28,143

3,034

3,579

27.1

27.7

167.7

198.8

51.7

43.6

13.9

12.0

28.8

29.5

8.7

7.3

Hygiene

HCL Tech^

Accumulate

923

1,014

131,761

52,342

57,053

20.9

62.8

67.6

14.7

13.7

3.3

2.8

22.4

20.6

2.2

1.9

Infosys

Buy

939

1,179

215,754

73,963

80,619

26.0

64.4

69.3

14.6

13.6

2.9

2.7

19.7

19.6

2.3

2.1

TCS

Neutral

2,585

509,375

127,403

138,870

27.6

144.5

156.0

17.9

16.6

5.3

4.9

29.7

29.8

3.7

3.3

Tech Mahindra

Accumulate

474

533

46,277

31,015

33,496

15.0

35.6

38.1

13.3

12.5

2.3

2.1

17.0

16.3

1.3

1.1

www.angelbroking.com

Stock Watch

October 17, 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

290

141,158

58,536

61,858

20.3

18.2

19.1

15.9

15.2

2.5

2.2

14.6

13.4

2.3

2.2

Media

D B Corp

Neutral

370

6,807

2,404

2,625

30.5

31.5

23.7

26.9

15.6

13.8

3.7

3.1

23.5

22.8

2.7

2.4

HT Media

Neutral

2,230

2,589

2,830

15.1

15.4

8.3

10.9

11.5

8.8

0.9

8.4

10.4

0.4

0.3

Jagran Prakashan

Buy

172

225

5,626

2,541

2,835

28.5

28.7

12.7

14.1

13.6

12.2

2.8

2.4

21.3

21.4

2.1

1.8

Sun TV Network

Neutral

816

32,155

3,238

3,789

51.9

55.1

30.9

38.0

26.4

21.5

7.5

6.6

30.0

31.0

9.4

8.0

Hindustan Media

Neutral

250

1,835

1,002

1,074

23.3

23.5

29.2

33.8

8.6

7.4

1.3

1.1

15.6

15.4

0.8

0.6

Ventures

TV Today Network

Buy

361

435

2,151

667

727

27.7

18.6

20.1

19.4

18.0

3.0

3.1

15.6

17.3

2.8

2.6

Music Broadcast Limited Accumulate

393

434

2,242

271

317

91.0

109.0

6.0

10.0

65.5

39.3

4.1

3.7

6.5

9.3

7.9

6.5

Metals & Mining

Coal India

Neutral

290

180,170

82,301

91,235

17.0

18.0

17.1

20.5

17.0

14.2

3.2

3.0

45.0

55.0

1.9

1.7

Hind. Zinc

Neutral

320

135,168

22,108

24,555

57.0

58.0

22.1

26.3

14.5

12.2

4.7

3.8

32.0

35.0

5.1

4.3

Hindalco

Neutral

271

60,903

102,350

105,355

13.5

14.5

21.5

24.5

12.6

11.1

1.7

1.5

15.0

15.2

1.2

1.1

JSW Steel

Neutral

261

62,993

64,500

68,245

21.1

21.5

20.1

21.2

13.0

12.3

2.4

2.0

1.7

1.6

NMDC

Neutral

123

38,821

10,209

11,450

47.0

48.0

11.1

12.1

11.1

10.1

1.5

1.4

3.3

3.0

SAIL

Neutral

24,058

54,100

63,555

3.0

10.0

(10.0)

1.5

38.8

0.8

1.4

1.2

Vedanta

Neutral

335

124,600

81,206

87,345

28.0

29.0

26.5

33.5

12.7

10.0

2.9

2.5

2.3

2.0

Tata Steel

Neutral

715

69,481

121,445

126,500

16.2

17.2

65.4

81.3

10.9

8.8

1.7

1.5

1.1

1.0

Oil & Gas

GAIL

Neutral

438

74,062

53,115

52,344

14.2

15.3

30.0

31.1

14.6

14.1

1.8

1.7

1.1

ONGC

Neutral

172

220,603

83,111

84,934

44.2

44.9

16.4

16.9

10.5

10.2

1.3

1.2

2.5

Indian Oil Corp

Neutral

414

200,816

396,116

432,560

8.5

8.8

40.1

42.2

10.3

9.8

1.8

1.6

0.7

0.6

Reliance Industries

Neutral

875

569,213

257,711

267,438

17.0

18.2

89.1

89.5

9.8

0.9

1.9

1.8

Pharmaceuticals

Alembic Pharma

Buy

495

600

9,333

3,903

4,584

18.2

19.2

21.8

27.2

22.7

18.2

4.1

3.4

19.8

20.6

2.4

2.1

Alkem Laboratories Ltd

Accumulate

1,843

2,079

22,041

6,320

7,341

17.5

19.8

72.7

96.6

25.4

19.1

4.5

3.8

16.7

18.7

3.4

2.9

Aurobindo Pharma

Accumulate

758

823

44,386

17,086

19,478

22.1

22.0

44.7

51.4

17.0

14.7

3.8

3.0

24.7

22.7

2.7

2.4

Aventis*

Neutral

4,222

9,724

2,508

2,862

16.8

139.9

153.8

30.2

27.5

4.4

3.6

23.5

25.8

3.5

2.9

Cadila Healthcare

Reduce

501

426

51,243

11,584

13,228

20.3

20.4

18.7

21.3

26.8

23.5

6.0

4.9

24.6

22.9

4.2

3.7

Cipla

Sell

606

458

48,800

16,619

19,437

15.4

16.2

19.7

24.3

30.8

25.0

3.5

3.1

12.0

13.2

3.1

2.6

Dr Reddy's

Neutral

2,397

39,744

15,844

17,973

17.6

18.2

91.7

111.0

26.1

21.6

3.0

2.7

11.9

13.0

2.7

2.4

GSK Pharma*

Neutral

2,445

20,707

3,260

3,651

15.0

18.0

46.1

58.6

53.0

41.7

10.9

11.2

20.0

26.5

6.2

5.7

Indoco Remedies

Sell

248

153

2,287

1,154

1,310

14.9

11.3

12.7

22.0

19.5

3.1

2.8

15.0

2.1

1.8

www.angelbroking.com

Stock Watch

October 17, 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

499

540

6,297

3,593

4,022

14.5

15.5

19.4

25.2

25.7

19.8

2.4

2.1

9.5

11.2

1.8

1.6

Lupin

Buy

1,070

1,467

48,333

18,657

21,289

21.3

23.3

52.8

66.7

20.3

16.0

3.1

2.6

16.3

17.5

2.6

2.2

Natco Pharma

Accumulate

990

1,057

17,251

1,886

2,016

32.3

29.5

23.2

22.0

42.8

44.9

8.9

7.9

20.9

17.6

9.0

8.4

Sun Pharma

Neutral

548

131,515

32,899

36,451

26.9

25.4

31.6

32.3

17.4

17.0

3.1

2.7

18.7

18.8

3.6

3.1

Syngene International

Accumulate

495

557

9,901

1,402

1,823

32.8

36.0

15.9

20.7

31.2

24.0

5.8

4.8

18.7

20.0

7.0

5.4

Power

Tata Power

Neutral

22,166

32,547

33,806

20.5

4.7

5.4

17.4

15.3

1.7

1.4

10.5

1.7

1.6

NTPC

Neutral

175

144,667

86,070

101,246

28.3

30.7

12.9

16.2

13.6

10.8

1.4

1.3

10.6

12.4

3.0

2.7

Power Grid

Accumulate

206

223

107,535

29,183

32,946

89.7

90.0

18.0

20.8

11.5

9.9

1.9

1.7

17.7

18.2

7.6

7.1

Real Estate

Prestige Estate

Neutral

287

10,755

4,607

5,146

21.0

22.2

7.9

9.8

36.3

29.3

2.2

2.1

10.3

12.0

3.5

3.2

MLIFE

Accumulate

457

522

2,344

487

590

12.3

17.8

21.0

31.2

21.8

14.6

1.1

5.2

7.4

3.5

2.9

Telecom

Bharti Airtel

Neutral

453

181,082

97,903

105,233

36.0

36.3

9.3

11.1

48.7

41.0

2.4

2.2

5.0

5.6

2.8

2.5

Idea Cellular

Neutral

29,955

35,012

37,689

27.1

27.7

(4.4)

(2.7)

1.3

1.4

(6.8)

(4.6)

2.2

1.9

zOthers

Abbott India

Neutral

4,307

9,151

3,244

3,723

14.9

16.1

167.5

209.4

25.7

20.6

5.7

4.7

23.7

24.8

2.5

2.1

Asian Granito

Buy

490

570

1,476

1,169

1,286

12.5

16.0

19.7

30.7

24.9

3.3

2.9

10.7

11.6

1.5

1.3

Bajaj Electricals

Neutral

396

4,016

4,646

5,301

6.7

7.6

16.1

22.3

24.6

17.7

4.0

3.4

16.4

19.2

0.9

0.8

Banco Products (India)

Neutral

223

1,595

1,530

1,695

13.2

12.7

19.0

20.0

11.7

11.2

1.9

1.7

0.2

1.0

105.9

Coffee Day Enterprises

Neutral

221

4,545

3,494

3,913

17.4

18.0

4.8

5.7

38.7

2.0

1.9

0.1

1.8

1.5

Ltd

Elecon Engineering

Neutral

742

171

201

15.0

16.2

36.0

43.0

1.8

1.5

0.2

0.1

3.7

3.1

Garware Wall Ropes

Neutral

892

1,951

928

1,003

15.2

39.4

43.2

22.6

20.7

3.7

3.2

16.5

15.4

2.0

1.8

Goodyear India*

Neutral

816

1,882

1,717

1,866

11.8

12.3

47.9

49.8

17.0

16.4

2.6

2.3

15.6

15.7

0.8

113.3

Hitachi

Neutral

2,059

5,599

2,355

2,715

10.3

10.8

49.0

60.9

42.0

33.8

9.8

7.8

0.2

2.4

2.1

HSIL

Neutral

432

3,122

2,240

2,670

14.6

15.0

17.0

22.0

25.4

19.6

2.1

2.0

0.1

1.6

1.3

Interglobe Aviation

Neutral

1,121

40,561

22,570

27,955

14.2

15.0

63.6

81.8

17.7

13.7

9.3

7.8

0.5

0.6

1.5

1.1

Jyothy Laboratories

Neutral

388

7,044

1,781

2,044

14.1

15.0

9.4

10.5

41.5

36.9

8.8

8.3

0.2

4.2

3.6

Linc Pen & Plastics

Neutral

248

366

420

462

9.3

15.3

17.1

16.2

14.5

2.7

2.8

16.9

19.5

0.9

0.8

M M Forgings

Neutral

835

1,008

542

642

20.1

21.0

41.6

56.8

20.1

14.7

2.8

2.3

0.1

0.2

2.3

2.0

Mirza International

Neutral

159

1,915

1,148

1,285

18.0

8.0

9.4

19.8

17.0

3.3

2.8

16.3

16.1

1.8

1.6

Navkar Corporation

Buy

193

265

2,745

561

617

41.5

11.5

12.7

16.7

15.1

1.8

1.6

10.5

10.4

5.6

4.8

Nilkamal

Neutral

1,629

2,431

2,317

2,525

11.4

11.1

96.0

105.0

17.0

15.5

2.9

2.5

0.2

1.0

0.9

www.angelbroking.com

Stock Watch

October 17, 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

272

2,289

1,987

2,379

7.6

9.0

12.4

18.3

21.9

14.9

3.1

2.7

8.2

13.2

1.3

1.1

Radico Khaitan

Neutral

216

2,875

1,811

1,992

13.2

8.1

8.8

26.7

24.5

2.7

2.9

10.1

12.0

1.9

1.7

Relaxo Footwears

Neutral

517

6,208

1,981

2,310

13.7

14.5

12.0

15.5

43.1

33.3

8.4

6.8

0.2

3.2

2.7

Siyaram Silk Mills

Accumulate

2,660

2,856

2,493

1,769

1,981

12.7

113.1

131.1

23.5

20.3

3.6

3.1

15.5

1.6

1.4

Styrolution ABS India* Neutral

1,056

1,858

1,800

1,980

8.0

8.1

42.0

46.2

25.2

22.9

2.8

2.5

0.1

1.1

Surya Roshni

Neutral

307

1,345

4,870

5,320

7.7

7.8

22.8

28.1

13.5

10.9

1.8

1.6

0.1

0.5

0.4

TVS Srichakra

Neutral

3,128

2,395

2,729

2,893

12.7

12.5

248.5

265.0

12.6

11.8

3.6

2.9

0.3

0.9

0.8

Visaka Industries

Neutral

721

1,145

1,104

1,214

12.1

12.6

31.0

37.9

23.3

19.1

2.8

2.5

0.1

1.3

1.1

VIP Industries

Accumulate

266

300

3,754

1,450

1,693

10.4

10.5

6.5

7.8

40.6

34.0

8.6

7.5

21.1

22.1

2.6

2.2

Navin Fluorine

Neutral

710

3,502

945

1,154

22.4

22.6

28.7

34.8

24.8

20.4

4.1

3.5

3.2

2.5

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 16, 2017

www.angelbroking.com

Market Outlook

October 17, 2017

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

DISCLAIMER

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decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make

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