Market Outlook

September 18, 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

32,273

Following the mixed performance seen in the previous session, US markets moved

Nifty

(0.0)

(1)

10,085

modestly higher over the course of the trading day on Friday. With the upward move

Mid Cap

(0.3)

(44)

15,973

on the day, the Dow and the S&P 500 reached new record closing highs. The Dow

Jones rose 0.3 percent to 22,268, the Nasdaq climbed 0.3 percent to 6,448 and the

Small Cap

0.4

16,688

S&P 500 edged up 0.2 percent to 2,500.

Bankex

(0.4)

(98)

27,978

The FTSE tumbled by 1.1 percent on worries over a rising pound, which hit a two-

Global Indices

Chg (%)

(Pts)

(Close)

month high against the euro and a one-year high against the dollar following

hawkish comments from the Bank of England. The notable weakness also came

Dow Jones

0.3

22,268

after an explosion aboard a subway train in southwest London during rush hour

Nasdaq

0.3

6,448

Friday morning which injured at least 22 people in an apparent terrorist attack.

FTSE

(1.1)

(80)

7,215

Indian markets ended on a flat note on Friday after falling earlier in the day on

Nikkei

0.5

102

19,910

renewed geopolitical worries after North Korea fired another ballistic missile over the

Hang Seng

0.1

27,808

northern Japanese island of Hokkaido, its second such provocative move in weeks.

Shanghai Com

(0.5)

(18)

3,354

The benchmark BSE Sensex erased early losses to end the session up 0.10 percent at

32,273 while the broader Nifty index closed down 0.01 percent at 10,085.

Advances / Declines

BSE

NSE

News Analysis

Advances

1,120

690

 Wipro wins IT contract from Innogy

Declines

1,481

991

 India’s 1QFY18 CAD widens due to higher gold imports

Unchanged

145

Detailed analysis is on Pg2

Volumes (` Cr)

Investor’s Ready Reckoner

BSE

4,326

Key Domestic & Global Indicators

NSE

34,741

Stock Watch: Latest investment recommendations on 150+ stocks

Refer Pg7 onwards

#Net Inflows (` Cr)

Net

Mtd

Ytd

FII

(931)

(3,529)

43,759

Top Picks

CMP

Target

Upside

MFs

845

5,119

74,006

Company

Sector

Rating

(`)

(%)

Blue Star

Capital Goods

Accumulate

785

807

2.8

Top Gainers

Price (`)

Chg (%)

Dewan Housing FinanceFinancials

Accumulate

568

610

7.3

Mahindra Lifespace

Real Estate

Accumulate

463

522

12.8

Bbtc

1,238

15.8

Navkar Corporation

Others

Buy

190

265

39.5

Andhrabank

11.6

KEI Industries

Capital Goods

Accumulate

323

371

14.8

Naukri

1,220

10.5

More Top Picks on Pg5

Edelweiss

282

9.3

Key Upcoming Events

Ipcalab

518

8.9

Consensus

Date

Region

Event Description

Reading

Expectations

Sep 18, 2017 US

Industrial Production

0.19

0.10

Top Losers

Price (`)

Chg (%)

Sep 19, 2017 US

Housing Starts

1,155.00

1,180.00

J&Kbank

(5.6)

Sep 19, 2017 US

FOMC rate decision

1.25

Il&Fstrans

(5.2)

Sep 20, 2017 US

Building permits

1,230.00

1,220.00

Rcom

(4.9)

Sep 20, 2017 US

Existing home sales

5.44

5.47

More Events on Pg7

Jpassociat

(4.2)

Centralbk

(4.2)

#as on 15^th Sep, 2017

www.angelbroking.com

Market Outlook

September 18, 2017

News Analysis

Wipro wins IT contract from Innogy

Indian IT specialist Wipro has won a 7 year contract from German utility Innogy.

The scope of the contract is to manage Innolog's data center and cloud services.

Innology focuses on renewables, grid & infrastructure and retail sectors.

Wipro will help the company to rationalize, virtualize and consolidate their IT

infrastructure. Wipro will also invest in and maintain Innogy’s twin data centers in

Germany. In February 2017, Innogy transferred its Germany based twin data

centers, located in Neurath und Niederaussen, to Wipro.

India’s 1QFY18 CAD widens due to higher gold imports

India’s current account deficit (CAD) widened to $14.3 billion, highest in four

years, to 2.4% of gross domestic product (GDP), in the June quarter due to pick up

in the gold imports ahead of GST implementation in July. in 4QFY17, CAD stood

at 0.6% of the GDP. Meanwhile, India's foreign trade has continued to recover with

both exports as well as imports, grew in double digits, at 10.3% and 21.02%

respectively, in August-17.

Economic and Political News

 Govt to tap markets to fund smart city, affordable homes

 After Maharashtra & UP, Rajasthan becomes 3rd BJP state to waive farm loans

 Tata Sons’ plan to go private seen as a blow to Mistry

Corporate News



`5,700cr ICICI Lombard IPO subscribed 27% on Day One

 Revival or just low base? FMCG volume sales grew 6% in July

 India's JSW Steel aims to increase own iron ore production

 Current account deficit widens to 4-year high as gold imports revive

 GST cess hike impact: Hyundai hikes vehicle prices by up to `84,867

www.angelbroking.com

Market Outlook

September 18, 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

21,445

1,794

2,161

20.5

more products in USA, which bodes for its international

business.

We expect the company would report strong profitability

Asian Granito

1,407

468

493

5.4

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

7,515

785

807

2.8

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

17,819

568

610

7.3

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

9,494

157

180

14.6

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

2,515

323

371

14.8

sales and higher exports to boost the revenues and

profitability

Speedier execution and speedier sales, strong revenue

Mahindra Lifespace

2,375

463

522

12.8

visibility in short-to-long run, attractive valuations

Expected to benefit from the lower capex requirement

Music Broadcast

2,280

400

434

8.6

and 15 year long radio broadcast licensing.

Massive capacity expansion along with rail advantage at

Navkar Corporation

2,709

190

265

39.5

ICD as well CFS augurs well for the company

Strong brands and distribution network would boost

Siyaram Silk Mills

2,205

2,352

2,500

6.3

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

1,697

285

344

20.9

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

2,44,328

8,088

8,658

7.0

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

2,933

545

655

20.3

year; change in borrowing mix will help in NIM

improvement..

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

September 18, 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 18, 2017

6:45 PM US

Industrial Production

Aug

0.19

0.10

Sep 19, 2017

6:00 PM US

Housi ng Starts

Thousands

Aug

1,155.00

1,180.00

11: 30 PM US

FOMC rate decision

Sep 20

1.25

Sep 20, 2017

6:00 PM US

Building permits

Thousands

Aug

1,230.00

1,220.00

7:30 PM US

Existing home sales

Million

Aug

5.44

5.47

Sep 21, 2017

6:00 PM US

Initial Jobless claims

Thousands

Sep 16

284.00

7:30 PM Euro Zone

Euro-Zone Consumer Confidence

Value

Sep A

(1.50)

(1.60)

Sep 22, 2017

1:00 PM Germany

PMI Services

Value

Sep P

53.50

53.80

1:00 PM Germany

PMI Manufacturing

Value

Sep P

59.30

59.00

Sep 26, 2017

7:30 PM US

Consumer Confidence

S.A./ 1985=100

Sep

122.90

118.50

7:30 PM US

New home sales

Thousands

Aug

571.00

600.00

Sep 28, 2017

6:00 PM US

GDP Qoq (Annualise d)

% Change

2Q T

3.00

3.20

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

2:00 PM UK

PMI Manufacturing

Value

Sep

56.90

Oct 02, 2017

6:30 AM China

PMI Manufacturing

Value

Sep

51.70

Oct 04, 2017

2:30 PM India

RBI Reverse Re po rate

Oct 4

5.75

2:30 PM India

RBI Repo rate

Oct 4

6.00

2:30 PM India

RBI Cash Reserve ratio

Oct 4

4.00

Oct 06, 2017

6:00 PM US

Change in N onfarm payrolls

Thousands

Sep

156.00

6:00 PM US

Unnemployment rate

Sep

4.40

Oct 10, 2017

2:00 PM UK

Industrial Production (YoY)

% Change

Aug

0.40

Oct 12, 2017

Producer Price Index (mom)

% Change

Sep

0.50

5:30 PM India

Industrial Production YoY

% Change

Aug

1.20

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

September 18, 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 18, 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

222

209

4,318

1,873

2,099

15.0

9.5

10.5

23.4

21.2

3.6

3.2

15.8

16.0

2.2

2.0

United Phosphorus

Neutral

828

42,050

18,922

21,949

18.0

18.5

36.2

45.6

22.9

18.2

4.8

4.0

22.7

23.8

2.4

2.0

Auto & Auto Ancillary

Ashok Leyland

Accumulate

117

127

34,182

23,339

27,240

10.1

10.8

4.7

6.2

25.1

18.8

5.0

4.4

20.0

23.6

1.4

1.2

Bajaj Auto

Neutral

3,022

87,448

23,936

27,955

19.5

20.1

142.7

167.3

21.2

18.1

4.6

4.1

21.8

22.8

3.2

2.7

Bharat Forge

Neutral

1,241

28,880

7,637

8,755

21.7

23.2

36.1

47.3

34.4

26.3

6.2

5.3

18.5

20.8

3.6

3.1

Eicher Motors

Neutral

31,956

86,993

19,043

22,837

19.5

19.9

835.4

1,019.0

38.3

31.4

14.3

11.0

40.9

37.8

4.4

3.6

Gabriel India

Neutral

212

3,049

1,782

2,033

9.7

10.2

7.1

8.9

29.9

24.0

6.0

5.1

21.0

22.2

1.7

1.4

Hero Motocorp

Accumulate

3,891

4,129

77,707

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

252

2,006

1,441

1,662

14.4

14.8

13.9

17.6

18.1

14.3

4.9

4.0

30.0

31.0

1.4

1.2

Mahindra and Mahindra Neutral

1,293

80,307

46,971

53,816

13.6

14.0

67.7

79.8

19.1

16.2

2.7

2.4

15.0

15.9

1.6

1.3

Maruti

Accumulate

8,088

8,658

244,328

81,825

101,245

15.0

283.5

356.0

28.5

22.7

6.2

5.1

21.9

22.4

2.7

2.1

Minda Industries

Neutral

868

7,502

4,328

5,084

11.0

11.9

27.3

36.4

31.9

23.9

6.8

5.3

23.1

25.6

1.8

1.5

Motherson Sumi

Neutral

332

69,976

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

401

115,855

303,167

343,649

11.8

13.8

33.1

54.7

12.1

7.3

2.0

1.6

16.9

23.0

0.4

TVS Motor

Neutral

650

30,878

13,992

16,216

9.0

9.4

17.1

20.3

38.1

32.0

10.1

7.8

29.7

27.7

2.1

1.8

Amara Raja Batteries

Accumulate

773

858

13,210

6,140

7,122

14.3

15.6

29.3

39.0

26.4

19.8

4.5

3.8

17.1

19.0

2.2

1.8

Exide Industries

Neutral

218

18,534

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

256

13,054

15,739

17,326

13.3

14.6

20.4

26.7

12.6

9.6

1.5

1.3

20.4

26.7

1.1

1.0

Ceat

Neutral

1,762

7,126

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

147

3,323

8,318

9,239

16.2

16.4

21.0

27.5

7.0

5.3

1.4

1.1

19.1

20.4

0.8

0.7

Swaraj Engines

Neutral

2,094

2,601

788

889

16.4

16.5

71.6

81.0

29.3

25.9

8.4

7.8

29.6

31.0

3.0

2.6

Subros

Neutral

236

1,418

1,855

2,135

11.6

11.8

10.3

14.7

23.1

16.1

3.5

3.0

15.8

19.1

1.0

0.8

Capital Goods

BEML

Neutral

1,844

7,680

4,286

5,194

7.1

8.2

42.9

58.1

43.0

31.7

3.5

3.2

7.6

8.7

1.9

1.5

Bharat Electronics

Neutral

190

42,461

10,258

12,470

19.6

19.5

7.3

8.6

26.0

22.1

0.5

20.4

21.9

3.6

3.0

Voltas

Neutral

543

17,970

6,778

8,004

9.6

11.0

17.1

22.4

31.8

24.3

7.6

6.6

17.7

19.8

2.3

2.0

BHEL

Neutral

132

32,308

33,200

39,167

6.8

9.5

6.2

11.2

21.3

11.8

1.0

0.9

4.6

8.0

0.6

0.4

Blue Star

Accumulate

785

850

7,515

5,101

5,997

6.0

7.0

17.9

26.6

43.8

29.5

9.3

8.5

21.9

29.0

1.5

1.3

CG Power and Industrial

Neutral

5,227

6,555

7,292

7.5

0.8

8,340.0

104.3

1.3

0.1

1.2

0.9

0.8

Solutions

Greaves Cotton

Neutral

141

3,453

1,778

1,993

14.7

15.1

8.1

9.1

17.5

15.5

3.9

3.7

21.8

23.6

1.7

1.5

www.angelbroking.com

Stock Watch

September 18, 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

320

350

8,220

9,779

11,113

9.4

9.8

14.2

18.2

22.5

17.6

4.3

3.5

21.1

22.1

1.1

1.0

KEI Industries

Accumulate

323

371

2,515

3,001

3,391

10.0

13.0

16.1

24.9

20.1

4.5

3.7

18.2

18.7

1.0

0.9

Thermax

Neutral

953

11,357

4,125

4,747

10.3

10.8

26.7

31.5

35.7

30.3

4.0

3.6

11.2

12.0

2.5

2.2

VATech Wabag

Accumulate

637

681

3,475

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

1,821

34,193

12,255

13,350

13.5

14.3

58.0

66.2

31.4

27.5

3.7

3.5

11.5

12.2

2.8

2.5

Ambuja Cements

Neutral

284

56,363

10,250

11,450

17.5

19.0

7.2

8.3

39.4

34.2

2.8

2.7

7.0

7.8

5.3

4.7

India Cements

Neutral

190

5,844

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

1,005

7,024

4,150

4,775

19.2

20.0

49.0

63.5

20.5

15.8

3.2

2.8

17.0

18.5

2.1

1.8

J K Lakshmi Cement

Neutral

430

5,056

3,422

3,757

15.5

17.0

13.5

23.2

31.8

18.5

3.3

2.9

10.8

15.5

1.9

1.6

Orient Cement

Neutral

159

3,250

2,215

3,233

16.8

17.0

5.9

6.9

26.9

23.0

2.1

1.9

10.8

10.1

2.5

1.6

UltraTech Cement

Neutral

4,205

115,429

28,250

35,150

20.2

23.5

77.5

122.2

54.3

34.4

4.6

4.1

9.6

14.8

4.6

3.6

Construction

KNR Constructions

Neutral

202

2,844

1,846

2,203

14.5

12.1

13.7

16.7

14.8

0.9

0.8

17.5

16.7

1.6

1.3

Larsen & Toubro

Neutral

1,212

169,809

95,787

109,476

10.2

11.6

44.5

50.8

27.3

23.9

3.4

3.1

12.9

13.1

2.3

2.1

Gujarat Pipavav Port

Neutral

147

7,082

739

842

61.6

62.7

5.1

6.2

28.7

23.8

3.6

3.5

12.7

14.9

9.0

7.8

PNC Infratech

Accumulate

136

143

3,489

2,040

2,935

13.0

6.4

9.0

21.3

15.1

0.6

0.5

9.7

12.2

1.7

1.2

Simplex Infra

Neutral

485

2,398

6,012

6,619

11.6

11.7

21.1

31.0

23.0

15.7

1.6

1.5

6.5

8.6

0.9

0.8

Sadbhav Engineering

Neutral

295

5,060

3,823

4,426

10.7

10.8

10.3

11.8

28.6

25.0

3.4

3.0

10.1

10.5

1.6

1.4

NBCC

Neutral

212

19,112

9,099

12,706

6.4

7.3

9.6

29.2

22.2

1.3

1.0

27.5

30.5

2.0

1.4

MEP Infra

Neutral

103

1,666

2,403

2,910

18.3

16.8

2.4

6.1

43.6

16.9

16.5

11.1

35.2

55.8

1.9

1.5

SIPL

Neutral

3,432

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

158

10,657

1,795

2,611

21.1

22.4

5.9

8.1

26.8

19.5

1.9

12.9

16.1

4.3

2.8

Financials

Axis Bank

Accumulate

518

580

124,088

32,558

35,843

3.5

3.2

27.8

41.0

18.6

12.6

2.0

1.8

11.4

14.9

Bank of Baroda

Neutral

145

33,456

22,533

26,079

2.4

12.0

20.9

12.1

7.0

0.8

0.7

6.6

11.0

Canara Bank

Neutral

347

20,747

17,925

20,235

2.0

2.1

18.5

36.5

18.8

9.5

0.7

3.4

6.2

Can Fin Homes

Neutral

2,798

7,448

586

741

3.5

107.8

141.0

25.9

19.9

5.7

4.6

24.1

25.6

Cholamandalam Inv. &

Accumulate

1,164

1,230

18,189

2,826

3,307

6.3

53.7

64.6

21.7

18.0

3.7

3.2

18.3

18.9

Fin. Co.

Dewan Housing Finance Accumulate

568

610

17,819

2,676

3,383

2.4

2.7

37.4

49.7

15.2

11.4

2.0

1.7

13.8

16.2

Equitas Holdings

Buy

162

235

5,487

1,125

1,380

9.6

9.8

1.5

6.0

108.0

27.0

2.5

2.3

2.4

8.2

Federal Bank

Accumulate

115

125

22,431

4,896

5,930

2.8

3.1

5.4

7.6

21.4

15.2

1.8

1.7

8.5

11.0

www.angelbroking.com

Stock Watch

September 18, 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

545

655

2,933

376

477

3.6

3.7

33.0

40.0

16.5

13.6

3.0

2.5

20.0

23.0

HDFC Bank

Neutral

1,849

477,261

55,236

63,253

4.5

4.4

68.9

82.4

26.9

22.4

4.7

3.9

18.7

18.5

ICICI Bank

Accumulate

292

315

187,319

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

Accumulate

157

180

9,494

3,289

3,630

3.7

3.9

10.8

14.1

14.5

11.2

1.7

1.6

12.5

14.7

LIC Housing Finance

Neutral

647

32,647

4,895

6,332

3.4

3.7

50.7

66.8

12.8

9.7

2.5

2.1

21.7

23.8

Punjab Natl.Bank

Neutral

145

30,770

23,708

25,758

2.1

5.9

16.4

24.6

8.8

0.7

3.0

8.3

RBL Bank

Neutral

532

21,979

2,309

2,888

2.6

2.5

16.4

19.1

32.5

27.9

4.1

3.6

13.3

13.8

Repco Home Finance

Buy

660

825

4,132

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

5,287

3,195

3,567

3.0

3.1

3.0

3.8

9.7

7.7

1.0

0.9

10.5

11.9

St Bk of India

Neutral

272

234,835

105,827

121,056

2.4

2.5

16.1

25.6

16.9

10.6

1.3

1.2

6.6

9.9

Union Bank

Neutral

137

9,981

14,650

16,225

2.3

23.1

32.5

6.0

4.2

0.5

0.4

7.1

9.2

Yes Bank

Neutral

1,842

84,371

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

1,805

8,657

3,164

3,607

13.8

13.7

58.6

67.9

30.8

26.6

7.6

6.7

24.5

25.1

2.6

2.3

Asian Paints

Neutral

1,244

119,339

17,603

20,615

18.6

2,128.9

2,543.3

0.6

0.5

12.3

10.4

28.0

28.9

6.6

5.5

Britannia

Neutral

4,367

52,435

9,690

11,278

14.8

15.4

84.0

101.0

52.0

43.2

18.9

15.1

40.6

39.0

5.4

4.6

Colgate

Neutral

1,134

30,836

4,420

5,074

24.9

25.3

28.6

32.8

39.6

34.6

15.6

12.6

43.8

40.5

6.7

5.8

Dabur India

Neutral

309

54,493

8,346

9,344

19.6

19.9

7.8

9.0

39.7

34.4

8.0

7.2

25.2

24.8

6.1

5.4

GlaxoSmith Con*

Neutral

5,097

21,437

5,072

5,760

18.2

18.4

176.3

199.2

28.9

25.6

6.1

5.6

21.2

21.7

3.6

3.1

Godrej Consumer

Neutral

937

63,841

10,171

11,682

20.8

21.5

21.7

27.1

43.2

34.6

9.7

8.3

22.3

23.4

6.4

5.5

HUL

Neutral

1,246

269,586

37,077

41,508

20.3

21.8

5,189.9

6,318.5

0.2

38.0

32.4

74.8

82.0

7.1

6.4

ITC

Neutral

269

328,077

44,588

49,853

37.0

37.3

9.6

11.0

28.1

24.5

6.9

6.6

25.1

27.3

6.8

6.1

Marico

Neutral

327

42,205

6,788

7,766

18.5

19.2

7.1

8.5

46.1

38.5

16.1

13.8

36.9

38.0

6.1

5.3

Nestle*

Neutral

7,335

70,724

10,083

11,182

20.0

20.9

119.7

141.3

61.3

51.9

216.0

197.4

36.7

39.8

6.7

6.0

Tata Global

Neutral

211

13,288

7,121

7,641

11.9

12.3

6.9

8.0

30.5

26.3

2.0

1.9

6.8

7.2

1.7

1.5

Procter & Gamble

Neutral

8,459

27,459

3,034

3,579

27.1

27.7

167.7

198.8

50.4

42.6

13.5

11.7

28.8

29.5

8.5

7.1

Hygiene

HCL Tech^

Accumulate

887

1,014

126,502

52,342

57,053

20.9

62.8

67.6

14.1

13.1

3.2

2.7

22.4

20.6

2.1

1.8

Infosys

Buy

909

1,179

208,703

73,963

80,619

26.0

64.4

69.3

14.1

13.1

2.8

2.6

19.7

19.6

2.3

2.0

TCS

Accumulate

2,499

2,651

492,321

127,403

138,870

27.6

144.5

156.0

17.3

16.0

5.1

4.8

29.7

29.8

3.5

3.2

Tech Mahindra

Buy

443

533

43,228

31,015

33,496

15.0

35.6

38.1

12.4

11.6

2.1

2.0

17.0

16.3

1.2

1.0

www.angelbroking.com

Stock Watch

September 18, 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

286

139,066

58,536

61,858

20.3

18.2

19.1

15.7

15.0

2.4

2.1

14.6

13.4

2.3

2.2

Media

D B Corp

Neutral

370

6,799

2,404

2,625

30.5

31.5

23.7

26.9

15.6

13.7

3.7

3.1

23.5

22.8

2.7

2.4

HT Media

Neutral

2,270

2,589

2,830

15.1

15.4

8.3

10.9

11.8

9.0

1.0

0.9

8.4

10.4

0.4

0.3

Jagran Prakashan

Buy

183

225

5,987

2,541

2,835

28.5

28.7

12.7

14.1

14.4

13.0

3.0

2.6

21.3

21.4

2.2

1.9

Sun TV Network

Neutral

823

32,447

3,238

3,789

51.9

55.1

30.9

38.0

26.7

21.7

7.6

6.7

30.0

31.0

9.5

8.0

Hindustan Media

Neutral

263

1,932

1,002

1,074

23.3

23.5

29.2

33.8

9.0

7.8

1.4

1.2

15.6

15.4

0.9

0.7

Ventures

TV Today Network

Buy

285

344

1,697

667

727

27.7

18.6

20.1

15.3

14.2

2.4

15.6

17.3

2.1

1.9

Music Broadcast Limited Accumulate

400

434

2,280

271

317

91.0

109.0

6.0

10.0

66.6

40.0

4.2

3.8

6.5

9.3

8.0

6.6

Metals & Mining

Coal India

Neutral

260

161,331

82,301

91,235

17.0

18.0

17.1

20.5

15.2

12.7

2.9

2.7

45.0

55.0

1.6

1.5

Hind. Zinc

Neutral

304

128,492

22,108

24,555

57.0

58.0

22.1

26.3

13.8

11.6

4.5

3.6

32.0

35.0

4.8

4.0

Hindalco

Neutral

247

55,462

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

267

64,443

64,500

68,245

21.1

21.5

20.1

21.2

13.3

12.6

2.4

2.1

1.7

NMDC

Neutral

132

41,732

10,209

11,450

47.0

48.0

11.1

12.1

11.9

10.9

1.6

3.6

3.3

SAIL

Neutral

25,689

54,100

63,555

3.0

10.0

(10.0)

1.5

41.5

0.8

1.5

1.3

Vedanta

Neutral

319

118,578

81,206

87,345

28.0

29.0

26.5

33.5

12.0

9.5

2.7

2.4

2.2

1.9

Tata Steel

Neutral

679

65,975

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

400

67,635

53,115

52,344

14.2

15.3

30.0

31.1

13.3

12.9

1.7

1.5

1.0

ONGC

Neutral

167

214,187

83,111

84,934

44.2

44.9

16.4

16.9

10.2

9.9

1.2

1.1

2.4

Indian Oil Corp

Neutral

415

201,569

396,116

432,560

8.5

8.8

40.1

42.2

10.4

9.8

1.8

1.6

0.7

0.6

Reliance Industries

Neutral

843

548,531

257,711

267,438

17.0

18.2

89.1

89.5

9.5

9.4

0.9

0.8

1.8

1.7

Pharmaceuticals

Alembic Pharma

Buy

486

600

9,166

3,903

4,584

18.2

19.2

21.8

27.2

22.3

17.9

4.1

3.4

19.8

20.6

2.4

2.0

Alkem Laboratories Ltd

Buy

1,794

2,161

21,445

6,901

7,850

18.4

19.1

85.0

100.5

21.1

17.8

4.3

3.6

20.2

20.1

3.1

2.7

Aurobindo Pharma

Accumulate

758

823

44,436

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

4,078

9,392

2,508

2,862

16.8

139.9

153.8

29.2

26.5

4.2

3.4

23.5

25.8

3.4

2.8

Cadila Healthcare

Reduce

481

426

49,263

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

561

458

45,103

16,619

19,437

15.4

16.2

19.7

24.3

28.5

23.1

3.2

2.9

12.0

13.2

2.9

2.4

Dr Reddy's

Neutral

2,210

36,644

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

2,411

20,421

3,260

3,651

15.0

18.0

46.1

58.6

52.3

41.1

10.7

11.1

20.0

26.5

6.2

5.6

Indoco Remedies

Sell

199

153

1,836

1,154

1,310

14.9

11.3

12.7

17.6

15.7

2.5

2.2

15.0

1.7

1.5

www.angelbroking.com

Stock Watch

September 18, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Pharmaceuticals

Ipca labs

Neutral

518

6,541

3,593

4,022

14.5

15.5

19.4

25.2

26.7

20.6

2.4

2.2

9.5

11.2

1.9

1.7

Lupin

Buy

1,007

1,467

45,500

18,657

21,289

21.3

23.3

52.8

66.7

19.1

15.1

2.9

2.4

16.3

17.5

2.5

2.0

Natco Pharma

Neutral

810

14,111

1,836

1,946

31.8

28.9

22.1

20.6

36.6

39.3

7.4

6.6

20.1

16.7

7.5

7.1

Sun Pharma

Accumulate

524

558

125,673

32,899

36,451

26.9

25.4

31.6

32.3

16.6

16.2

2.9

2.5

18.7

18.8

3.4

3.0

Syngene International

Buy

480

557

9,594

1,402

1,823

32.8

36.0

15.9

20.7

30.2

23.2

5.6

4.6

18.7

20.0

6.8

5.2

Power

Tata Power

Neutral

22,801

32,547

33,806

20.5

4.7

5.4

17.9

15.8

1.7

1.5

10.5

1.7

1.6

NTPC

Neutral

167

137,947

86,070

101,246

28.3

30.7

12.9

16.2

13.0

10.3

1.3

1.2

10.6

12.4

3.0

2.7

Power Grid

Neutral

213

111,668

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

260

9,731

4,607

5,146

21.0

22.2

7.9

9.8

32.9

26.5

2.0

1.9

10.3

12.0

3.3

3.0

MLIFE

Accumulate

463

522

2,375

487

590

12.3

17.8

21.0

31.2

22.0

14.8

1.2

1.1

5.2

7.4

3.6

2.9

Telecom

Bharti Airtel

Neutral

396

158,157

97,903

105,233

36.0

36.3

9.3

11.1

42.5

35.8

2.1

1.9

5.0

5.6

2.6

2.3

Idea Cellular

Neutral

28,729

35,012

37,689

27.1

27.7

(4.4)

(2.7)

1.2

1.3

(6.8)

(4.6)

2.1

1.9

zOthers

Abbott India

Neutral

4,136

8,788

3,244

3,723

14.9

16.1

167.5

209.4

24.7

19.8

5.4

4.6

23.7

24.8

2.4

2.0

Asian Granito

Accumulate

468

493

1,407

1,169

1,286

12.5

16.0

19.7

29.3

23.7

3.1

2.8

10.7

11.6

1.4

1.3

Bajaj Electricals

Neutral

391

3,967

4,646

5,301

6.7

7.6

16.1

22.3

24.3

17.5

4.0

3.4

16.4

19.2

0.8

Banco Products (India)

Neutral

215

1,540

1,530

1,695

13.2

12.7

19.0

20.0

11.3

10.8

1.8

1.6

0.2

0.9

101.8

Coffee Day Enterprises

Neutral

242

4,977

3,494

3,913

17.4

18.0

4.8

5.7

42.4

2.1

2.0

0.1

1.9

1.7

Ltd

Elecon Engineering

Neutral

586

171

201

15.0

16.2

36.0

43.0

1.5

1.2

0.1

2.8

2.4

Garware Wall Ropes

Neutral

880

1,925

928

1,003

15.2

39.4

43.2

22.3

20.4

3.7

3.1

16.5

15.4

1.9

1.7

Goodyear India*

Neutral

825

1,903

1,717

1,866

11.8

12.3

47.9

49.8

17.2

16.6

2.7

2.3

15.6

15.7

0.8

115.1

Hitachi

Neutral

1,997

5,431

2,355

2,715

10.3

10.8

49.0

60.9

40.8

32.8

9.5

7.5

0.2

2.3

2.0

HSIL

Neutral

393

2,842

2,240

2,670

14.6

15.0

17.0

22.0

23.1

17.9

1.9

1.8

0.1

1.5

1.2

Interglobe Aviation

Neutral

1,176

42,547

22,570

27,955

14.2

15.0

63.6

81.8

18.5

14.4

9.7

8.2

0.5

0.6

1.6

1.2

Jyothy Laboratories

Neutral

419

7,620

1,781

2,044

14.1

15.0

9.4

10.5

44.9

39.9

9.5

9.0

0.2

4.5

3.9

Linc Pen & Plastics

Neutral

234

346

420

462

9.3

15.3

17.1

15.3

13.7

2.6

2.7

16.9

19.5

0.9

0.8

M M Forgings

Neutral

626

755

542

642

20.1

21.0

41.6

56.8

15.0

11.0

2.1

1.8

0.1

0.2

1.8

1.6

Mirza International

Neutral

170

2,039

1,148

1,285

18.0

8.0

9.4

21.1

18.1

3.5

3.0

16.3

16.1

1.9

1.7

Navkar Corporation

Buy

190

265

2,709

561

617

41.5

11.5

12.7

16.5

14.9

1.7

1.6

10.5

10.4

5.5

4.8

Nilkamal

Neutral

1,599

2,387

2,317

2,525

11.4

11.1

96.0

105.0

16.7

15.2

2.8

2.5

0.2

1.0

0.9

www.angelbroking.com

Stock Watch

September 18, 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

249

2,090

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

169

2,251

1,811

1,992

13.2

8.1

8.8

20.9

19.2

2.1

2.3

10.1

12.0

1.6

1.4

Relaxo Footwears

Neutral

529

6,355

1,981

2,310

13.7

14.5

12.0

15.5

44.1

34.1

8.6

6.9

0.2

3.3

2.8

Siyaram Silk Mills

Accumulate

2,352

2,500

2,205

1,769

1,981

12.7

113.1

131.1

20.8

17.9

3.2

2.8

15.5

1.4

1.3

Styrolution ABS India* Neutral

951

1,672

1,800

1,980

8.0

8.1

42.0

46.2

22.6

20.6

2.5

2.3

0.1

1.0

Surya Roshni

Neutral

307

1,343

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

3,092

2,367

2,729

2,893

12.7

12.5

248.5

265.0

12.4

11.7

3.5

2.9

0.3

0.9

0.8

Visaka Industries

Neutral

632

1,003

1,104

1,214

12.1

12.6

31.0

37.9

20.4

16.7

2.5

2.2

0.1

1.1

1.0

VIP Industries

Accumulate

225

250

3,173

1,450

1,693

10.4

10.5

6.5

7.8

34.3

28.8

7.3

6.3

21.1

22.1

2.2

1.9

Navin Fluorine

Accumulate

652

730

3,215

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 15, 2017

www.angelbroking.com

Market Outlook

September 18, 2017

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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