Market Outlook
November 01, 2017
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open positive tracking global indices and SGX Nifty.
BSE Sensex
(0.2)
(53)
33,213
Nifty
(0.3)
(28)
10,335
U.S. stocks market rose slightly on Tuesday, the final trading day of the month, and
posted another solid monthly gain. The modest strength on Wall Street partly
Mid Cap
0.1
23
16,588
reflected a positive reaction to the latest batch of earnings news, with Kellogg (K)
Small Cap
0.5
81
17,600
and Mondelez (MDLZ) posting notable gains after reporting better than expected
Bankex
0.2
70
28,284
third quarter results.
Global Indices
Chg (%)
(Pts)
(Close)
Earnings season continued to shake up sentiment on the second trading day of the
week. The majority of the European markets are set to end Tuesday's session with
Dow Jones
(0.4)
(85)
23,349
modest gains. Trading activity was on the light side, due to a public holiday in
Nasdaq
(0.0)
(2)
6,699
Germany. Investors also remain in a cautious mood ahead of tomorrow's policy
FTSE
0.2
16
7,504
decision by the Federal Reserve and Thursday's announcement from the Bank of
Nikkei
(0.0)
(0)
22,012
England.
Hang Seng
(0.3)
(91)
28,246
Indian markets ended modestly lower on Tuesday as investors booked profits in
Shanghai Com
0.1
3
3,393
recent outperformers following overnight weakness on Wall Street and a subdued
trend across Asia. European markets were higher in holiday-thinned trade, helping
Advances / Declines
BSE
NSE
limit overall losses to some extent.
Advances
1,383
1,150
News Analysis
Declines
1,361
603
Result Review: Dr. Reddy’s Lab
Unchanged
160
64
Detailed analysis on Pg2
Volumes (` Cr)
Investor’s Ready Reckoner
BSE
4,282
Key Domestic & Global Indicators
NSE
35,109
Stock Watch: Latest investment recommendations on 150+ stocks
Refer Pg5 onwards
Net Inflows (` Cr)
Net
Mtd
Ytd
Top Picks
FII
193
1,922
38,451
CMP
Target
Upside
Company
Sector
Rating
MFs
308
8,621
94,964
(`)
(`)
(%)
Blue Star
Capital Goods Accumulate
806
867
7.5
Dewan Housing Finance
Financials
Accumulate
642
690
7.5
Top Gainers
Price (`)
Chg (%)
Asian Granito
Other
Buy
495
570
15.2
Religare
41
10.0
Navkar Corporation
Other
Buy
192
265
38.3
Rcom
17
9.2
KEI Industries
Capital Goods Accumulate
335
380
13.5
Axisbank
523
8.0
More Top Picks on Pg4
Dlf
201
7.1
Key Upcoming Events
Bfutilitie
453
6.0
Previous
Consensus
Date
Region
Event Description
Reading
Expectations
Nov01
Euro Zone Euro-Zone GDP s.a. (QoQ)
0.60
0.50
Top Losers
Price (`)
Chg (%)
Nov01
US
FOMC rate decision
1.25
1.25
Adanitrans
207
(5.0)
Nov02
Germany Unemployment change (000's)
(22.00)
(10.00)
Idbi
63
(3.9)
Nov02
US
Initial Jobless claims
233.00
235.00
Unionbank
177
(3.9)
Nov02
Germany PMI Manufacturing
60.50
60.50
More Events on Pg7
Sparc
420
(3.9)
Pfc
139
(3.6)
As on October, 31 2017
Market Outlook
November 01, 2017
News Analysis
Dr Reddy’s Labs (CMP: `2,430 / TP: /Upside :)
The company posted lower than expected on all fronts. In rupee terms, revenues
came in at `3,546cr V/s `3,587cr, down 1.1% yoy. This was against the
expectations of `3,700cr. The Global generics (`2,862cr), yoy dip of 1.0%, PSAI
(`565.4cr), yoy dip of 2.0%.
In terms of geography in global generics, USA (North America posted 11.0% dip
yoy on back of pricing pressures, India another key market posted a 2.0% yoy
growth. Other markets, like EMEA posted a yoy growth of 14.0% respectively. PSAI
sales in terms of geography like USA posted a 15% yoy dip, Europe posted a 7.0%
yoy dip, India posted a 24.0% yoy dip, and ROW posted a 17% growth yoy.
On the operating front the EBITDA margin, came in at 18.3% V/s 19.7% expected,
and 16.2% in 2QFY2017 on back of much lower than expected R&D expenses,
which dipped by 19.9% yoy. Consequently, PAT came in at `285cr V/s `594cr
expected, a dip of 3.4% yoy. We maintain our neutral rating on the stock.
Y/E
Sales OPM
PAT
EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
15,844
17.6
1,521
91.7
11.9
26.5
3.0
15.6
2.8
FY2018E
17,973
18.2
1,840
111.0
13.0
21.4
2.7
13.4
2.4
Economic and Political News
UP govt to probe irregularities in PM rural housing scheme, MNREGA
Rupee may be at Rs 66/USD in Dec as RBI tries to recoup forex reserves
Healthcare sector revenues to grow 15% annually over next 3yrs: Crisil
Corporate News
JSW Steel posts lower-than-expected PAT at `836cr, up 29% y-o-y
Airtel Q2 net tanks 76.5% to `343cr on tariff wars with Reliance Jio
Welspun Enterprises clocks net profit of `17.2cr in Q2
Market Outlook
November 01, 2017
Quarterly Bloomberg Brokers Consensus Estimate
TVS Motor Ltd - Nov 01, 2017
Particulars ( ` cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY18
q-o-q (%)
Sales
4,124
3,426
20.4
3,399
21.4
EBIDTA
327
276
18.4
211
54.9
%
7.9
8.1
6.2
PAT
209
177
18.1
129
62.1
Hero Motors Ltd - Nov 01, 2017
Particulars ( ` cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY18
q-o-q (%)
Sales
8,816
7,796
13.1
7,971
10.6
EBIDTA
1,442
1,368
5.4
1,295
11.3
%
16.3
17.5
16.2
PAT
1,034
1,004
2.9
914
13.2
Shriram Transport Finance - Nov 01, 2017
Particulars ( `cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY18
q-o-q (%)
PAT
453
387
17.1
448
1.2
Tech Mahindra Ltd - Nov 01, 2017
Particulars ( ` cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY18
q-o-q (%)
Sales
7,533
7,167
5.1
7,336
2.6
EBIDTA
1,042
1,070
(2.6)
934
11.6
%
13.8
14.9
12.7
PAT
735
643
14.3
791
(7.9)
Market Outlook
November 01, 2017
Top Picks HHHHH
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
Strong growth in domestic business due to its leade`hip
in acute therapeutic segment. Alkem expects to launch
Alkem Laboratories
22,312
1,866
2,079
11.4
more products in USA, which bodes for its international
business.
We expect the company would report strong profitability
Asian Granito
1,489
495
570
15.2
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
Blue Star
7,720
806
867
7.5
market growth. EMPPAC division's profitability to
improve once operating environment turns around.
With a focus on the low and medium income (LMI)
consumer segment, the company has increased its
Dewan Housing Finance
20,124
642
690
7.5
presence in tier-II & III cities where the growth
opportunity is immense.
Loan growth is likely to pick up after a sluggish FY17.
Lower credit cost will help in strong bottom-line growth.
Karur Vysya Bank
7,669
127
180
41.8
Increasing share of CASA will help in NIM
improvement.
High order book execution in EPC segment, rising B2C
KEI Industries
2,604
335
380
13.5
sales and higher exports to boost the revenues and
profitability
Expected to benefit from the lower capex requirement
Music Broadcast
2,194
385
434
12.8
and 15 year long radio broadcast licensing.
Massive capacity expansion along with rail advantage
Navkar Corporation
2,732
192
265
38.3
at ICD as well CFS augur well for the company
Strong brands and distribution network would boost
Siyaram Silk Mills
2,759
589
650
10.4
growth 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
TV Today Network
2,132
357
435
21.7
radio business, and anticipated growth in ad spends by
corporate to benefit the stock.
After GST, the company is expected to see higher
volumes along with improving product mix. The Gujarat
Maruti Suzuki
2,48,222
8,217
8,658
5.4
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
2,598
483
655
35.8
year; change in borrowing mix will help in NIM
improvement..
Source: Company, Angel Research
Market Outlook
November 01, 2017
Key Upcoming Events
Result Calendar
D ate
C ompany
November 01, 2017
Hero Motocorp, TVS Motor, Apollo Tyres, Subros, Shriram Trans., Godrej Consumer, Tech Mahindra, Hexaware
November 02, 2017
Areva, Ramco Cements, Andhra Bank, Sesa Goa, Glenmark Pharma., Power Grid Corpn, TCI
Source: Bloomberg, Angel Research
Global economic events release calendar
Bl oomberg Data
D ate
Time
C ountry
Event Description
Unit
Period
L ast Reporte d
E stimate d
Nov 01, 2017
3:30 PMEuro Zone Euro-Zone GDP s.a. (QoQ)
% Change
3Q A
0.60
0.50
11: 30 PMUS
FOMC rate decision
%
Nov 1
1.25
1.25
Nov 02, 2017
2:25 PMGermany Unempl oyment change (000's)
Thousands
Oct
(22.00)
(10.00)
6:00 PMUS
Initial Jobless claims
Thousands
Oct 28
233.00
235.00
2:25 PMGermany PMI Manufacturing
Value
Oct F
60.50
60.50
5:30 PMUK
BOE Announce s rate s
% Ratio
Nov 2
0.25
0.50
Nov 03, 2017
6:00 PMUS
Change in N onfarm payrolls
Thousands
Oct
(33.00)
312.00
6:00 PMUS
Unnemployment rate
%
Oct
4.20
4.20
Nov 06, 2017
2:25 PMGermany PMI Services
Value
Oct F
55.20
Nov 08, 2017
China
Exports YoY%
% Change
Oct
8.10
7.50
Nov 09, 2017
7:00 AMChina
Consumer Price Index (YoY)
% Change
Oct
1.60
1.80
3:00 PMUK
Industrial Production (YoY)
% Change
Sep
1.60
Nov 10, 2017
India
Imports YoY%
% Change
Oct
18.09
India
Exports YoY%
% Change
Oct
25.67
7:30 AMChina
Industrial Production (YoY)
% Change
Oct
6.60
Source: Bloomberg, Angel Research
Market Outlook
November 01, 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
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
52.0
3.4
3.3
3.3
3.5
3.2
3.0
50.0
3.0
2.2
2.4
48.0
2.5
2.0
46.0
1.5
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
5.50
40.0
5.00
30.0
4.50
20.0
4.00
10.0
3.50
0.0
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
Market Outlook
November 01, 2017
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
6.9
7.0
5.8
6.0
5.3
5.0
5.0
1.1
3.7
4.0
2.5
3.0
2.2
1.8
2.0
1.5
1.4
0.8
1.0
0.3
-
Source: Bloomberg, Angel Research
Exhibit 2: 2017 GDP Growth projection by IMF (%, yoy) across select developing and developed countries
(%)
6.7
6.8
7.0
6.0
5.4
5.2
5.0
3.7
4.0
3.0
1.8
2.2
2.0
1.7
1.6
2.0
0.7
1.5
0.7
1.0
-
Source: IMF, Angel Research
Exhibit 3: One year forward P-E ratio across select developing and developed countries
(x)
25.0
20.0
15.0
10.0
5.0
-
Source: IMF, Angel Research
Market Outlook
November 01, 2017
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
74,308
1.0
12.7
15.7
Russia
Micex
2,064
(0.6)
5.0
4.9
India
Nifty
10,335
6.2
3.1
20.0
China
Shanghai Composite
3,393
1.9
4.8
8.9
South Africa
Top 40
52,570
6.5
7.6
17.9
Mexico
Mexbol
48,626
(3.4)
(5.0)
4.2
Indonesia
LQ45
992
1.2
2.3
6.8
Malaysia
KLCI
1,748
(0.6)
(1.0)
4.7
Thailand
SET 50
1,095
2.4
8.7
15.9
USA
Dow Jones
23,377
4.3
6.4
29.6
UK
FTSE
7,493
1.6
0.9
9.5
Japan
Nikkei
22,012
8.1
10.3
26.8
Germany
DAX
13,230
4.5
9.2
28.1
France
CAC
5,503
3.3
7.8
22.9
Source: Bloomberg, Angel Research p68in4
Stock Watch
November 01, 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
245
209
4,764
1,873
2,099
15.0
15.0
9.5
10.5
25.8
23.3
3.9
3.5
15.8
16.0
2.4
2.2
United Phosphorus
Neutral
799
-
40,572
18,922
21,949
18.0
18.5
36.2
45.6
22.1
17.5
4.6
3.8
22.7
23.8
2.3
1.9
Auto & Auto Ancillary
Ashok Leyland
Neutral
131
-
38,308
23,339
27,240
10.1
10.8
4.7
6.2
28.2
21.1
5.6
5.0
20.0
23.6
1.6
1.3
Bajaj Auto
Neutral
3,260
-
94,334
23,936
27,955
19.5
20.1
142.7
167.3
22.8
19.5
5.0
4.4
21.8
22.8
3.5
3.0
Bharat Forge
Buy
696
875
32,400
7,637
8,755
21.7
23.2
36.1
47.3
19.3
14.7
3.5
3.0
18.5
20.8
4.1
3.5
Eicher Motors
Neutral
32,233
-
87,748
19,043
22,837
19.5
19.9
835.4
1,019.0
38.6
31.6
14.4
11.1
40.9
37.8
4.5
3.7
Gabriel India
Neutral
198
-
2,838
1,782
2,033
9.7
10.2
7.1
8.9
27.8
22.3
5.6
4.8
21.0
22.2
1.5
1.3
Hero Motocorp
Accumulate
3,855
4,129
76,978
32,239
36,878
16.0
15.6
184.4
206.5
20.9
18.7
6.6
5.8
31.3
30.7
2.2
1.9
Jamna Auto Industries Neutral
66
-
2,618
1,441
1,662
14.4
14.8
13.9
17.6
4.7
3.7
1.3
1.1
30.0
31.0
1.8
1.5
Mahindra and Mahindra Neutral
1,345
-
83,537
46,971
53,816
13.6
14.0
67.7
79.8
19.9
16.9
2.8
2.5
15.0
15.9
1.7
1.4
Maruti
Accumulate
8,217
8,658
248,222
81,825
101,245
15.0
15.0
283.5
356.0
29.0
23.1
6.3
5.2
21.9
22.4
2.7
2.1
Minda Industries
Neutral
815
-
7,047
4,328
5,084
11.0
11.9
27.3
36.4
29.9
22.4
6.3
5.0
23.1
25.6
1.7
1.5
Motherson Sumi
Neutral
365
-
76,733
55,937
64,445
10.8
11.4
16.9
21.1
21.6
17.3
4.8
4.9
25.2
25.4
1.4
1.2
Tata Motors
Neutral
429
-
123,737
303,167
343,649
11.8
13.8
33.1
54.7
13.0
7.8
2.1
1.7
16.9
23.0
0.5
0.4
TVS Motor
Neutral
725
-
34,458
13,992
16,216
9.0
9.4
17.1
20.3
42.5
35.7
11.3
8.7
29.7
27.7
2.4
2.0
Amara Raja Batteries
Buy
699
858
11,941
6,140
7,122
14.3
15.6
29.3
39.0
23.9
17.9
4.1
3.4
17.1
19.0
2.0
1.7
Exide Industries
Neutral
209
-
17,735
8,689
9,854
15.1
15.2
9.7
11.0
21.6
19.0
3.8
3.4
15.7
16.1
1.8
1.5
Apollo Tyres
Neutral
245
-
12,486
15,739
17,326
13.3
14.6
20.4
26.7
12.0
9.2
1.5
1.3
20.4
26.7
1.0
0.9
Ceat
Neutral
1,674
-
6,770
6,661
7,717
11.1
14.2
116.2
178.2
14.4
9.4
2.5
2.1
15.2
21.3
1.1
1.0
JK Tyres
Neutral
146
-
3,301
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
2,080
-
2,584
788
889
16.4
16.5
71.6
81.0
29.1
25.7
8.4
7.8
29.6
31.0
2.9
2.6
Subros
Neutral
274
-
1,644
1,855
2,135
11.6
11.8
10.3
14.7
26.7
18.7
4.1
3.5
15.8
19.1
1.1
0.9
Capital Goods
BEML
Neutral
1,714
-
7,139
4,286
5,194
7.1
8.2
42.9
58.1
40.0
29.5
3.3
3.0
7.6
8.7
1.7
1.4
Bharat Electronics
Neutral
185
-
45,356
10,258
12,470
19.6
19.5
7.3
8.6
25.3
21.5
0.5
0.4
20.4
21.9
3.9
3.2
Voltas
Neutral
568
-
18,806
6,778
8,004
9.6
11.0
17.1
22.4
33.2
25.4
7.9
7.0
17.7
19.8
2.5
2.1
BHEL
Neutral
98
-
35,888
33,200
39,167
6.8
9.5
6.2
11.2
15.8
8.7
0.7
0.7
4.6
8.0
0.7
0.5
Blue Star
Accumulate
806
867
7,720
5,220
6,207
6.3
6.6
16.8
22.3
48.0
36.2
9.5
8.4
19.9
23.3
1.4
1.2
CG Power and Industrial
Neutral
83
-
5,196
6,555
7,292
7.5
7.5
-
0.8
8,290.0
103.6
1.3
1.3
0.1
1.2
0.9
0.8
Solutions
Greaves Cotton
Neutral
128
-
3,132
1,778
1,993
14.7
15.1
8.1
9.1
15.8
14.1
3.6
3.3
21.8
23.6
1.5
1.4
Stock Watch
November 01, 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
292
350
7,519
9,779
11,113
9.4
9.8
14.2
18.2
20.6
16.1
3.9
3.2
21.1
22.1
1.0
0.9
KEI Industries
Accumulate
335
380
2,604
3,001
3,391
10.0
10.0
13.0
16.1
25.7
20.8
4.7
3.9
18.2
18.7
1.0
0.9
Thermax
Neutral
986
-
11,749
4,125
4,747
10.3
10.8
26.7
31.5
36.9
31.3
4.1
3.8
11.2
12.0
2.6
2.2
VATech Wabag
Buy
586
681
3,201
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
0.8
Cement
ACC
Neutral
1,806
-
33,907
12,255
13,350
13.5
14.3
58.0
66.2
31.1
27.3
3.7
3.4
11.5
12.2
2.7
2.5
Ambuja Cements
Neutral
282
-
55,946
10,250
11,450
17.5
19.0
7.2
8.3
39.1
34.0
2.8
2.7
7.0
7.8
5.2
4.6
India Cements
Neutral
195
-
5,995
6,135
6,750
14.8
15.2
8.5
11.5
22.9
16.9
1.1
1.1
4.8
6.2
1.3
1.2
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
433
-
5,091
3,422
3,757
15.5
17.0
13.5
23.2
32.1
18.7
3.3
2.9
10.8
15.5
1.9
1.7
Orient Cement
Neutral
168
-
3,449
2,215
3,233
16.8
17.0
5.9
6.9
28.5
24.4
2.2
2.0
10.8
10.1
2.6
1.7
UltraTech Cement
Neutral
4,401
-
120,829
28,250
35,150
20.2
23.5
77.5
122.2
56.8
36.0
4.8
4.3
9.6
14.8
4.7
3.8
Construction
KNR Constructions
Neutral
250
-
3,511
1,846
2,203
14.5
14.5
12.1
13.7
20.6
18.3
1.1
1.0
17.5
16.7
2.0
1.6
Larsen & Toubro
Neutral
1,221
-
170,951
95,787
109,476
10.2
11.6
44.5
50.8
27.5
24.1
3.4
3.2
12.9
13.1
2.3
2.1
Gujarat Pipavav Port
Neutral
142
-
6,841
739
842
61.6
62.7
5.1
6.2
27.8
23.0
3.5
3.4
12.7
14.9
8.7
7.5
PNC Infratech
Neutral
203
-
5,214
2,040
2,935
13.0
13.0
6.4
9.0
31.8
22.6
0.8
0.7
9.7
12.2
2.6
1.8
Simplex Infra
Neutral
539
-
2,667
6,012
6,619
11.6
11.7
21.1
31.0
25.6
17.4
1.8
1.6
6.5
8.6
1.0
0.9
Sadbhav Engineering
Neutral
317
-
5,430
3,823
4,426
10.7
10.8
10.3
11.8
30.7
26.8
3.7
3.2
10.1
10.5
1.7
1.5
NBCC
Neutral
260
-
23,409
9,099
12,706
6.4
6.4
7.3
9.6
35.7
27.2
1.6
1.2
27.5
30.5
2.4
1.8
MEP Infra
Neutral
99
-
1,612
2,403
2,910
18.3
16.8
2.4
6.1
42.2
16.3
16.0
10.8
35.2
55.8
1.8
1.5
SIPL
Neutral
117
-
4,121
2,060
2,390
46.8
47.7
(5.8)
(3.1)
4.4
5.0
(14.2)
(2.3)
6.8
6.3
Engineers India
Neutral
186
-
12,504
1,795
2,611
21.1
22.4
5.9
8.1
31.5
22.9
2.2
2.2
12.9
16.1
5.3
3.5
Financials
Axis Bank
Accumulate
523
580
125,406
32,558
35,843
3.5
3.2
27.8
41.0
18.8
12.8
2.0
1.8
11.4
14.9
-
-
Bank of Baroda
Neutral
170
-
39,136
22,533
26,079
2.4
2.4
12.0
20.9
14.1
8.1
0.9
0.9
6.6
11.0
-
-
Canara Bank
Neutral
405
-
24,175
17,925
20,235
2.0
2.1
18.5
36.5
21.9
11.1
0.8
0.8
3.4
6.2
-
-
Can Fin Homes
Buy
480
2,128
6,391
586
741
3.5
3.5
107.8
141.0
4.5
3.4
1.0
0.8
24.1
25.6
-
-
Cholamandalam Inv. &
Accumulate
1,151
1,230
17,993
2,826
3,307
6.3
6.3
53.7
64.6
21.5
17.8
3.7
3.1
18.3
18.9
-
-
Fin. Co.
Dewan Housing Finance Accumulate
642
690
20,124
2,676
3,383
2.4
2.7
37.4
49.7
17.2
12.9
2.3
2.0
13.8
16.2
-
-
Equitas Holdings
Buy
147
235
4,992
1,125
1,380
9.6
9.8
1.5
6.0
98.2
24.6
2.2
2.1
2.4
8.2
-
-
Federal Bank
Neutral
122
-
23,737
4,896
5,930
2.8
3.1
5.4
7.6
22.7
16.1
1.9
1.8
8.5
11.0
-
-
Stock Watch
November 01, 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
483
655
2,598
376
477
3.6
3.7
33.0
40.0
14.6
12.1
2.6
2.2
20.0
23.0
-
-
HDFC Bank
Neutral
1,809
-
467,393
55,236
63,253
4.5
4.4
68.9
82.4
26.3
21.9
4.6
3.8
18.7
18.5
-
-
ICICI Bank
Accumulate
300
315
192,452
42,361
51,378
3.6
3.9
18.4
25.7
16.3
11.7
1.8
1.7
11.3
15.0
-
-
Karur Vysya Bank
Buy
127
180
7,669
3,289
3,630
3.7
3.9
10.8
14.1
11.7
9.0
1.4
1.3
12.5
14.7
-
-
LIC Housing Finance
Accumulate
599
630
30,252
4,895
6,332
3.4
3.7
50.7
66.8
11.8
9.0
2.4
2.0
21.7
23.8
-
-
Punjab Natl.Bank
Neutral
197
-
41,857
23,708
25,758
2.1
2.1
5.9
16.4
33.5
12.0
1.0
0.9
3.0
8.3
-
-
RBL Bank
Neutral
524
-
21,665
2,309
2,888
2.6
2.5
16.4
19.1
32.1
27.5
4.0
3.6
13.3
13.8
-
-
Repco Home Finance
Buy
619
825
3,873
496
597
4.4
4.2
38.5
48.7
16.1
12.7
2.9
2.4
19.6
20.6
-
-
South Ind.Bank
Neutral
31
-
5,521
3,195
3,567
3.0
3.1
3.0
3.8
10.1
8.0
1.0
0.9
10.5
11.9
-
-
St Bk of India
Neutral
306
-
263,968
105,827
121,056
2.4
2.5
16.1
25.6
19.0
12.0
1.5
1.4
6.6
9.9
-
-
Union Bank
Neutral
177
-
12,836
14,650
16,225
2.3
2.3
23.1
32.5
7.7
5.4
0.6
0.5
7.1
9.2
-
-
Yes Bank
Neutral
314
-
71,990
11,088
13,138
3.0
2.9
84.0
99.3
3.7
3.2
0.6
0.5
16.3
16.8
-
-
FMCG
Akzo Nobel India
Neutral
1,913
-
9,176
3,164
3,607
13.8
13.7
58.6
67.9
32.7
28.2
8.0
7.1
24.5
25.1
2.8
2.4
Asian Paints
Neutral
1,181
-
113,252
17,603
20,615
18.6
18.6
2,128.9
2,543.3
0.6
0.5
11.7
9.8
28.0
28.9
6.2
5.3
Britannia
Neutral
4,649
-
55,820
9,690
11,278
14.8
15.4
84.0
101.0
55.4
46.0
20.2
16.0
40.6
39.0
5.7
4.9
Colgate
Neutral
1,063
-
28,922
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
333
-
58,676
8,346
9,344
19.6
19.9
7.8
9.0
42.7
37.0
8.6
7.8
25.2
24.8
6.6
5.8
GlaxoSmith Con*
Neutral
5,070
-
21,322
5,072
5,760
18.2
18.4
176.3
199.2
28.8
25.5
6.1
5.5
21.2
21.7
3.5
3.1
Godrej Consumer
Neutral
934
-
63,663
10,171
11,682
20.8
21.5
21.7
27.1
43.1
34.5
9.7
8.3
22.3
23.4
6.4
5.5
HUL
Neutral
1,237
-
267,713
37,077
41,508
20.3
21.8
5,189.9
6,318.5
0.2
0.2
37.7
32.2
74.8
82.0
7.1
6.3
ITC
Neutral
266
-
324,118
44,588
49,853
37.0
37.3
9.6
11.0
27.7
24.2
6.8
6.5
25.1
27.3
6.8
6.0
Marico
Neutral
315
-
40,676
6,788
7,766
18.5
19.2
7.1
8.5
44.4
37.1
15.5
13.3
36.9
38.0
5.8
5.1
Nestle*
Neutral
7,221
-
69,623
10,083
11,182
20.0
20.9
119.7
141.3
60.3
51.1
212.6
194.3
36.7
39.8
6.6
5.9
Tata Global
Neutral
227
-
14,323
7,121
7,641
11.9
12.3
6.9
8.0
32.9
28.4
2.2
2.1
6.8
7.2
1.8
1.7
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
IT
HCL Tech^
Buy
856
1,014
122,086
50,009
54,608
22.1
22.1
62.8
67.6
13.6
12.7
3.1
2.6
22.4
20.6
2.1
1.8
Infosys
Buy
922
1,120
211,702
70,333
75,960
26.0
26.0
61.7
65.9
14.9
14.0
2.8
2.6
18.9
18.7
2.4
2.2
TCS
Neutral
2,616
-
515,523
123,384
134,488
26.1
26.1
133.2
143.7
19.6
18.2
5.4
5.1
27.6
27.8
3.8
3.5
Tech Mahindra
Accumulate
481
533
46,970
31,015
33,496
15.0
15.0
35.6
38.1
13.5
12.6
2.3
2.2
17.0
16.3
1.3
1.1
Stock Watch
November 01, 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
IT
Wipro
Neutral
294
-
143,081
54,164
56,544
22.3
22.3
18.8
19.5
15.6
15.1
2.5
2.2
15.0
13.6
1.9
1.6
Media
D B Corp
Neutral
361
-
6,639
2,404
2,625
30.5
31.5
23.7
26.9
15.2
13.4
3.6
3.1
23.5
22.8
2.6
2.4
HT Media
Neutral
102
-
2,383
2,589
2,830
15.1
15.4
8.3
10.9
12.3
9.4
1.0
0.9
8.4
10.4
0.5
0.3
Jagran Prakashan
Buy
178
225
5,814
2,541
2,835
28.5
28.7
12.7
14.1
14.0
12.6
2.9
2.5
21.3
21.4
2.1
1.8
Sun TV Network
Neutral
859
-
33,846
3,238
3,789
51.9
55.1
30.9
38.0
27.8
22.6
7.9
7.0
30.0
31.0
10.0
8.4
Hindustan Media
Neutral
237
-
1,739
1,002
1,074
23.3
23.5
29.2
33.8
8.1
7.0
1.3
1.1
15.6
15.4
0.7
0.5
Ventures
TV Today Network
Buy
357
435
2,132
667
727
27.7
27.7
18.6
20.1
19.2
17.8
3.0
3.1
15.6
17.3
2.7
2.5
Music Broadcast Limited Accumulate
385
434
2,194
271
317
91.0
109.0
6.0
10.0
64.1
38.5
4.0
3.6
6.5
9.3
7.7
6.3
Metals & Mining
Coal India
Neutral
286
-
177,749
82,301
91,235
17.0
18.0
17.1
20.5
16.8
14.0
3.1
3.0
45.0
55.0
1.8
1.6
Hind. Zinc
Neutral
315
-
133,288
22,108
24,555
57.0
58.0
22.1
26.3
14.3
12.0
4.6
3.8
32.0
35.0
5.0
4.2
Hindalco
Neutral
267
-
59,983
102,350
105,355
13.5
14.5
21.5
24.5
12.4
10.9
1.7
1.5
15.0
15.2
1.2
1.1
JSW Steel
Neutral
258
-
62,328
64,500
68,245
21.1
21.5
20.1
21.2
12.8
12.2
2.3
2.0
-
-
1.7
1.6
NMDC
Neutral
128
-
40,640
10,209
11,450
47.0
48.0
11.1
12.1
11.6
10.6
1.6
1.5
-
-
3.5
3.2
SAIL
Neutral
78
-
32,173
54,100
63,555
3.0
10.0
(10.0)
1.5
51.9
1.0
1.0
-
-
1.6
1.4
Vedanta
Neutral
332
-
123,355
81,206
87,345
28.0
29.0
26.5
33.5
12.5
9.9
2.9
2.4
-
-
2.3
2.0
Tata Steel
Neutral
704
-
68,340
121,445
126,500
16.2
17.2
65.4
81.3
10.8
8.7
1.7
1.5
-
-
1.1
1.0
Oil & Gas
GAIL
Neutral
465
-
78,637
53,115
52,344
14.2
15.3
30.0
31.1
15.5
15.0
1.9
1.8
-
-
1.2
1.2
ONGC
Neutral
191
-
245,243
83,111
84,934
44.2
44.9
16.4
16.9
11.7
11.3
1.4
1.3
-
-
2.8
2.8
Indian Oil Corp
Neutral
416
-
201,763
396,116
432,560
8.5
8.8
40.1
42.2
10.4
9.9
1.8
1.6
-
-
0.7
0.6
Reliance Industries
Neutral
941
-
611,878
257,711
267,438
17.0
18.2
89.1
89.5
10.6
10.5
1.0
0.9
-
-
2.0
1.9
Pharmaceuticals
Alembic Pharma
Buy
504
600
9,503
3,903
4,584
18.2
19.2
21.8
27.2
23.1
18.5
4.2
3.5
19.8
20.6
2.5
2.1
Alkem Laboratories Ltd
Accumulate
1,866
2,079
22,312
6,320
7,341
17.5
19.8
72.7
96.6
25.7
19.3
4.5
3.8
16.7
18.7
3.5
2.9
Aurobindo Pharma
Accumulate
761
823
44,603
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
4,199
-
9,671
2,508
2,862
16.8
16.8
139.9
153.8
30.0
27.3
4.4
3.5
23.5
25.8
3.5
2.9
Cadila Healthcare
Sell
503
426
51,458
11,584
13,228
20.3
20.4
18.7
21.3
26.9
23.6
6.0
4.9
24.6
22.9
4.3
3.7
Cipla
Sell
626
458
50,349
16,619
19,437
15.4
16.2
19.7
24.3
31.8
25.8
3.6
3.2
12.0
13.2
3.2
2.7
Dr Reddy's
Neutral
2,431
-
40,311
15,844
17,973
17.6
18.2
91.7
111.0
26.5
21.9
3.0
2.7
11.9
13.0
2.8
2.4
GSK Pharma*
Neutral
2,576
-
21,820
3,260
3,651
15.0
18.0
46.1
58.6
55.9
44.0
11.5
11.8
20.0
26.5
6.6
6.0
Indoco Remedies
Sell
264
153
2,433
1,154
1,310
14.9
14.9
11.3
12.7
23.4
20.8
3.3
2.9
15.0
15.0
2.2
1.9
Stock Watch
November 01, 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
533
-
6,725
3,593
4,022
14.5
15.5
19.4
25.2
27.5
21.2
2.5
2.3
9.5
11.2
1.9
1.7
Lupin
Buy
1,027
1,467
46,420
18,657
21,289
21.3
23.3
52.8
66.7
19.5
15.4
2.9
2.5
16.3
17.5
2.5
2.1
Natco Pharma
Accumulate
968
1,057
16,876
1,886
2,016
32.3
29.5
23.2
22.0
41.8
43.9
8.8
7.7
20.9
17.6
8.8
8.2
Sun Pharma
Neutral
553
-
132,774
32,899
36,451
26.9
25.4
31.6
32.3
17.5
17.1
3.1
2.7
18.7
18.8
3.7
3.2
Syngene International
Accumulate
504
557
10,088
1,402
1,823
32.8
36.0
15.9
20.7
31.8
24.4
5.9
4.9
18.7
20.0
7.2
5.5
Power
Tata Power
Neutral
85
-
22,964
32,547
33,806
20.5
20.5
4.7
5.4
18.1
15.9
1.7
1.5
10.5
10.5
1.7
1.6
NTPC
Neutral
181
-
148,831
86,070
101,246
28.3
30.7
12.9
16.2
14.0
11.1
1.4
1.3
10.6
12.4
3.1
2.8
Power Grid
Neutral
213
-
111,302
29,183
32,946
89.7
90.0
18.0
20.8
11.9
10.2
2.0
1.8
17.7
18.2
7.8
7.2
Real Estate
Prestige Estate
Neutral
304
-
11,398
4,607
5,146
21.0
22.2
7.9
9.8
38.5
31.0
2.4
2.2
10.3
12.0
3.6
3.3
MLIFE
Buy
442
522
2,267
487
590
12.3
17.8
21.0
31.2
21.0
14.2
1.1
1.0
5.2
7.4
3.4
2.7
Telecom
Bharti Airtel
Neutral
498
-
198,931
97,903
105,233
36.0
36.3
9.3
11.1
53.5
45.0
2.6
2.4
5.0
5.6
3.0
2.7
Idea Cellular
Neutral
93
-
33,508
35,012
37,689
27.1
27.7
(4.4)
(2.7)
1.4
1.5
(6.8)
(4.6)
2.3
2.0
zOthers
Abbott India
Neutral
4,214
-
8,954
3,244
3,723
14.9
16.1
167.5
209.4
25.2
20.1
5.6
4.6
23.7
24.8
2.4
2.0
Asian Granito
Buy
495
570
1,489
1,169
1,286
12.5
12.5
16.0
19.7
31.0
25.1
3.3
2.9
10.7
11.6
1.5
1.3
Bajaj Electricals
Neutral
388
-
3,935
4,646
5,301
6.7
7.6
16.1
22.3
24.1
17.4
3.9
3.3
16.4
19.2
0.8
0.7
Banco Products (India)
Neutral
221
-
1,581
1,530
1,695
13.2
12.7
19.0
20.0
11.6
11.1
1.9
1.6
0.2
0.2
0.9
104.8
Coffee Day Enterprises
Neutral
222
-
4,567
3,494
3,913
17.4
18.0
4.8
5.7
-
38.9
2.0
1.9
-
0.1
1.8
1.6
Ltd
Elecon Engineering
Neutral
75
-
838
171
201
15.0
16.2
36.0
43.0
2.1
1.7
0.2
0.2
0.1
0.1
4.3
3.6
Garware Wall Ropes
Neutral
938
-
2,053
928
1,003
15.2
15.2
39.4
43.2
23.8
21.7
3.9
3.4
16.5
15.4
2.1
1.9
Goodyear India*
Neutral
819
-
1,890
1,717
1,866
11.8
12.3
47.9
49.8
17.1
16.5
2.6
2.3
15.6
15.7
0.8
114.0
Hitachi
Neutral
2,352
-
6,395
2,355
2,715
10.3
10.8
49.0
60.9
48.0
38.6
11.2
8.9
0.2
0.2
2.7
2.4
HSIL
Neutral
424
-
3,067
2,240
2,670
14.6
15.0
17.0
22.0
25.0
19.3
2.1
2.0
0.1
0.1
1.6
1.3
Interglobe Aviation
Neutral
1,248
-
45,133
22,570
27,955
14.2
15.0
63.6
81.8
19.6
15.3
10.3
8.7
0.5
0.6
1.7
1.3
Jyothy Laboratories
Neutral
394
-
7,164
1,781
2,044
14.1
15.0
9.4
10.5
42.2
37.6
9.0
8.4
0.2
0.2
4.2
3.6
Linc Pen & Plastics
Neutral
249
-
368
420
462
9.3
9.3
15.3
17.1
16.3
14.6
2.7
2.8
16.9
19.5
0.9
0.8
M M Forgings
Neutral
850
-
1,026
542
642
20.1
21.0
41.6
56.8
20.4
15.0
2.8
2.4
0.1
0.2
2.3
2.0
Mirza International
Neutral
160
-
1,923
1,148
1,285
18.0
18.0
8.0
9.4
19.9
17.1
3.3
2.8
16.3
16.1
1.8
1.6
Navkar Corporation
Buy
192
265
2,732
561
617
41.5
41.5
11.5
12.7
16.6
15.1
1.8
1.6
10.5
10.4
5.5
4.8
Nilkamal
Neutral
1,610
-
2,402
2,317
2,525
11.4
11.1
96.0
105.0
16.8
15.3
2.8
2.5
0.2
0.2
1.0
0.9
Stock Watch
November 01, 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
271
-
2,278
1,987
2,379
7.6
9.0
12.4
18.3
21.8
14.8
3.1
2.7
8.2
13.2
1.3
1.1
Radico Khaitan
Neutral
219
-
2,919
1,811
1,992
13.2
13.2
8.1
8.8
27.1
24.9
2.7
3.0
10.1
12.0
1.9
1.8
Relaxo Footwears
Neutral
547
-
6,577
1,981
2,310
13.7
14.5
12.0
15.5
45.6
35.3
8.9
7.2
0.2
0.2
3.4
2.9
Siyaram Silk Mills
Accumulate
589
650
2,759
1,769
1,981
12.7
12.7
22.6
26.2
26.0
22.5
4.0
3.5
15.5
15.5
1.7
1.5
Styrolution ABS India* Neutral
985
-
1,732
1,800
1,980
8.0
8.1
42.0
46.2
23.5
21.3
2.6
2.3
0.1
0.1
1.1
1.0
Surya Roshni
Neutral
370
-
1,622
4,870
5,320
7.7
7.8
22.8
28.1
16.3
13.2
2.2
1.9
0.1
0.1
0.6
0.5
TVS Srichakra
Neutral
3,204
-
2,453
2,729
2,893
12.7
12.5
248.5
265.0
12.9
12.1
3.7
3.0
0.3
0.3
0.9
0.8
Visaka Industries
Neutral
657
-
1,043
1,104
1,214
12.1
12.6
31.0
37.9
21.2
17.4
2.6
2.3
0.1
0.1
1.2
1.0
VIP Industries
Neutral
289
-
4,087
1,450
1,693
10.4
10.5
6.5
7.8
44.2
37.0
9.3
8.2
21.1
22.1
2.8
2.4
Navin Fluorine
Neutral
739
-
3,644
945
1,154
22.4
22.6
28.7
34.8
25.8
21.3
4.3
3.6
-
-
3.4
2.6
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 31, 2017
Market Outlook
November 01, 2017
Research Team Tel: 022 - 39357800
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