Market Outlook

August 21, 2017

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

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

BSE Sensex

(0.9)

(271)

31,525

U.S. stock benchmarks closed firmly lower on Friday with low volumes. Stocks shifted

Nifty

(0.7)

(67)

9,837

between gains and losses Friday as President Donald Trump’s strategist Stephen

Mid Cap

(0.1)

(20)

15,208

Bannon departed the White House, following the prior day’s selloff fuelled by a

Small Cap

(0.5)

(77)

15,618

terrorist attack in Barcelona and rumours that Trump’s economic adviser Gary Cohn

might resign. The Dow closed down 0.35 percent to 21,674, The S&P 500 declined

Bankex

(0.7)

(194)

27,184

0.18 percent to close at 2,425, and The Nasdaq declined 0.09 percent at 6,216.

Global Indices

Chg (%)

(Pts)

(Close)

Blue-chip stocks in the U.K. dropped Friday, wrapping up the week with a fall in

travel-related stocks after terrorists launched attacks in Spain. The FTSE 100 UKX,

Dow Jones

(0.4)

(76)

21,675

fell 0.9 percent to close at 7,324, trimming its weekly advance to 0.2 percent.

Nasdaq

(0.1)

(5)

6,217

FTSE

(0.9)

(64)

7,324

On the domestic front, Indian shares fell on Friday, with weak global cues and steep

losses in Infosys shares in the wake of CEO Vishal Sikka's resignation weighing on

Nikkei

(1.2)

(232)

19,470

markets, heading into the weekend. The 30-share BSE Sensex fell 0.85 percent to

Hang Seng

(1.1)

(297)

27,048

finish at 31,524.68 while the broader 50-share NSE Nifty index ended down by

Shanghai Com

0.0

3,269

0.67 percent at 9,837.40.

Advances / Declines

BSE

NSE

Advances

1,944

1,589

News Analysis

Declines

1,621

1,102

 CEO & MD of Infosys Resigns

Unchanged

116

 Infosys Buyback

Detailed analysis is on Pg2

Volumes (` Cr)

BSE

3,864

Investor’s Ready Reckoner

NSE

28,953

Key Domestic & Global Indicators

Stock Watch: Latest investment recommendations on 150+ stocks

#Net Inflows (` Cr)

Net

Mtd

Ytd

Pg7 onwards

FII

(1,927)

(6,127)

52,270

Top Picks

MFs

8(38)

4,434

55,380

CMP

Target

Upside

Company

Sector

Rating

(`)

(%)

Blue Star

Capital Goods

Accumulate

714

760

6.4

Top Gainers

Price (`)

Chg (%)

Dewan Housing FinanceFinancials

Buy

450

520

15.5

Dishtvem

178

5.7

Mahindra Lifespace

Real Estate

Buy

405

522

28.9

Sparc

399

5.1

Navkar Corporation

Others

Buy

189

265

40.3

Pcjeweller

372

4.5

KEI Industries

Capital Goods

Buy

216

258

19.6

More Top Picks on Pg5

Rcom

4.3

Infratel

394

4.1

Key Upcoming Events

Consensus

Date

Region

Event Description

Reading

Expectations

Top Losers

Price (`)

Chg (%)

Aug 23, 2017 Germany PMI Services

53.10

53.30

Infy

923

(9.6)

Aug 23, 2017 Germany PMI Manufacturing

58.10

57.70

Aban

177

(4.3)

Aug 23, 2017 US

New home sales

610.00

Aug 23, 2017 Euro Zone Euro-Zone Consumer Confidence

(1.70)

(1.90)

Fortis

145

(4.1)

Aug 24, 2017 US

Initial Jobless claims

232.00

Sunpharma

470

(3.8)

More Events on Pg7

Sintex

(3.8)

#as on 18^th Aug, 2017

www.angelbroking.com

Market Outlook

August 21, 2017

News Analysis

CEO & MD of Infosys Resigns

Mr. Vishal Sikka has resigned as the Chief Executive Officer & Managing Director

of Infosys with immediate effect. Sikka cited among his reasons for leaving "a

continuous stream of distractions and disruptions over the recent months and

quarters, increasingly personal and negative as of late, as preventing

management's ability to accelerate the company's transformation. Sikka has been

appointed as Executive Vice-Chairman while Chief Operating Officer UB Pravin

Rao will now take over as the interim MD & CEO of the software major. Infosys

said that the succession plan for appointment of a new Managing Director and

Chief Executive Officer has been operationalised by the Board & a search for the

same has been commenced. While in near term it’s a setback for the company;

but given the strength of the board of the company, we believe that the company,

will be overcome the setback. Given the valuations we maintain our buy with a

price target of `1179.

Infosys Buyback

Infosys Ltd.’s board approved to buy back shares worth up to `13,000cr at `

1,150/-. That represents 4.92 percent of its total outstanding equity. The buyback

price implies a premium of 24.5 percent to Friday’s closing price.

Economic and Political News

 PSBs need to take haircuts on stressed assets: RBI Governor

 Bank unions threaten to strike work on Tuesday; services may be hit

 Govt. may soon allow 100% FDI in defence

Corporate News

 Laurus Labs’ Vizag unit gets two U.S. FDA observations

 Central Bank of India issues preference shares to government

 Bajaj Electricals Bags order worth `391.45cr from Transmission Corporation

of Telangana

 Nestle India partners with Amazon for new range of Maggi noodles

www.angelbroking.com

Market Outlook

August 21, 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

21,520

1,800

2,161

20.1

more products in USA, which bodes for its international

business.

We expect the company would report strong profitability

Asian Granito

1,231

409

480

17.3

owing to better product mix, higher B2C sales and

amalgamation synergy.

Favorable outlook for the AC industry to augur well for

Cooling products business which is out pacing the

Blue Star

6,841

714

760

6.4

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

14,121

450

520

15.5

presence in tier-II & III cities where the growth

opportunity is immense.

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

Karur Vysya Bank

8,614

143

160

12.2

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

1,678

216

258

19.6

sales and higher exports to boost the revenues and

profitability

Speedier execution and speedier sales, strong revenue

Mahindra Lifespace

2,078

405

522

28.9

visibility in short-to-long run, attractive valuations

Expected to benefit from the lower capex requirement

Music Broadcast

2,146

376

434

15.4

and 15 year long radio broadcast licensing.

Massive capacity expansion along with rail advantage at

Navkar Corporation

2,694

189

265

40.3

ICD as well CFS augurs well for the company

Strong brands and distribution network would boost

Siyaram Silk Mills

1,892

2,018

2,500

23.9

growth going ahead. Stock currently trades at an

inexpensive valuation.

Market leadership in Hindi news genre and no.

viewership ranking in English news genre, exit from the

TV Today Network

1,432

240

344

43.3

radio business, and anticipated growth in ad spends by

corporates to benefit the stock.

After GST, the company is expected to see higher

volumes along with improving product mix. The Gujarat

Maruti Suzuki

2,30,187

7,620

8,544

12.1

plant will also enable higher operating leverage which

will be margin accretive.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

August 21, 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

Aug 23, 2017

1:00 PM Germany

PMI Services

Value

Aug P

53.10

53.30

1:00 PM Germany

PMI Manufacturing

Value

Aug P

58.10

57.70

7:30 PM US

New home sales

Thousands

Jul

610.00

7:30 PM Euro Zone

Euro-Zone Consumer Confidence

Value

Aug A

(1.70)

(1.90)

Aug 24, 2017

6:00 PM US

Initial Jobless claims

Thousands

Aug 19

232.00

11: 30 AM Germany

GDP nsa (YoY)

% Change

2Q F

0.80

2:00 PM UK

GDP (YoY)

% Change

2Q P

1.70

Aug 25, 2017

7:30 PM US

Existing home sales

Million

Jul

5.52

5.56

Aug 29, 2017

7:30 PM US

Consumer Confidence

S.A./ 1985=100

Aug

121.10

119.00

Aug 30, 2017

6:00 PM US

GDP Qoq (Annualise d)

% Change

2Q S

2.60

2.40

Aug 31, 2017

1:25 PM Germany

Unempl oyment change (000's)

Thousands

Aug

(8.00)

6:30 AM China

PMI Manufacturing

Value

Aug

51.40

Sep 01, 2017

6:00 PM US

Change in N onfarm payrolls

Thousands

Aug

209.00

180.00

6:00 PM US

Unnemployment rate

Aug

4.30

2:00 PM UK

PMI Manufacturing

Value

Aug

55.10

Sep 05, 2017

2:30 PM Euro Zone

Euro-Zone GDP s.a. (QoQ)

% Change

2Q F

0.60

Sep 07, 2017

5:15 PM Euro Zone

ECB announces interest rates

Sep 7

Sep 08, 2017

India

Exports YoY%

% Change

Aug

3.94

India

Imports YoY%

% Change

Aug

15.40

2:00 PM UK

Industrial Production (YoY)

% Change

Jul

0.30

China

Exports YoY%

% Change

Aug

7.20

Sep 09, 2017

7:00 AM China

Consumer Price Index (YoY)

% Change

Aug

1.40

Sep 12, 2017

2:00 PM UK

CPI (YoY)

% Change

Aug

2.60

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

August 21, 2017

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

5.7

10.0

6.0

9.1

8.8

4.9

9.0

5.0

7.9

8.0

7.9

7.6

7.5

3.8

8.0

7.3

7.2

4.0

7.0

3.0

2.6

2.8

7.0

6.1

3.0

1.9

6.0

2.0

5.0

1.0

4.0

3.0

(0.1)

(1.0)

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

(%)

6.0

54.0

5.1

52.0

5.0

4.3

4.2

3.9

50.0

3.6

3.7

4.0

3.4

3.2

3.0

48.0

3.0

2.4

2.2

46.0

2.0

1.5

44.0

1.0

42.0

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

20.0

5.00

10.0

4.50

0.0

4.00

(10.0)

3.50

(20.0)

(30.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Market Outlook

August 21, 2017

Exhibit 4: Relative performance of indices across globe

Returns (%)

C ountry

Name of index

Closing price

1YR

Brazil

Bovespa

68,715

5.4

9.7

16.8

Russia

Micex

1,931

(1.1)

(1.6)

(2.4)

India

Nifty

9,837

0.1

4.3

13.4

China

Shanghai Composite

3,269

1.2

5.8

8.8

South Africa

Top 40

48,930

4.3

2.4

7.8

Mexico

Mexbol

51,075

(0.0)

4.4

5.8

Indonesia

LQ45

982

0.7

3.5

6.7

Malaysia

KLCI

1,776

1.1

0.0

5.8

Thailand

SET 50

997

(0.0)

1.3

0.6

USA

Dow Jones

21,675

0.2

4.9

16.8

FTSE

7,324

(1.4)

(2.0)

7.3

Japan

Nikkei

19,470

(2.6)

(0.4)

16.3

Germany

DAX

12,165

(2.3)

(3.7)

14.5

France

CAC

5,114

(2.0)

(3.9)

15.1

Source: Bloomberg, Angel Research

www.angelbroking.com

Stock Watch

August 21, 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

229

209

4,450

1,873

2,099

15.0

9.5

10.5

24.1

21.8

3.7

3.3

15.8

16.0

2.3

2.1

United Phosphorus

Neutral

846

42,992

18,922

21,949

18.0

18.5

36.2

45.6

23.4

18.6

4.9

4.0

22.7

23.8

2.4

2.0

Auto & Auto Ancillary

Ashok Leyland

Buy

104

124

30,348

23,339

27,240

10.1

10.8

4.7

6.2

22.3

16.7

4.5

3.9

20.0

23.6

1.3

1.1

Bajaj Auto

Accumulate

2,816

3,151

81,477

23,936

27,955

19.5

20.1

142.7

167.3

19.7

16.8

4.3

3.8

21.8

22.8

3.0

2.5

Bharat Forge

Neutral

1,172

27,277

7,637

8,755

21.7

23.2

36.1

47.3

32.5

24.8

5.8

5.0

18.5

20.8

3.4

2.9

Eicher Motors

Neutral

31,511

85,781

19,043

22,837

19.5

19.9

835.4

1,019.0

37.7

30.9

14.1

10.9

40.9

37.8

4.4

3.6

Gabriel India

Neutral

175

2,513

1,782

2,033

9.7

10.2

7.1

8.9

24.6

19.8

5.0

4.2

21.0

22.2

1.4

1.2

Hero Motocorp

Neutral

3,983

79,534

32,239

36,878

16.0

15.6

184.4

206.5

21.6

19.3

6.8

6.0

31.3

30.7

2.3

1.9

Jamna Auto Industries Neutral

250

1,994

1,441

1,662

14.4

14.8

13.9

17.6

18.0

14.2

4.9

4.0

30.0

31.0

1.4

1.2

Mahindra and Mahindra Neutral

1,371

85,161

46,971

53,816

13.6

14.0

67.7

79.8

20.3

17.2

2.9

2.6

15.0

15.9

1.7

1.4

Maruti

Accumulate

7,620

8,544

230,187

81,825

101,245

15.0

283.5

356.0

26.9

21.4

5.9

4.8

21.9

22.4

2.5

1.9

Minda Industries

Neutral

780

6,741

4,328

5,084

11.0

11.9

27.3

36.4

28.6

21.4

6.1

4.7

23.1

25.6

1.6

1.4

Motherson Sumi

Neutral

325

68,513

55,937

64,445

10.8

11.4

16.9

21.1

19.3

15.5

4.3

4.4

25.2

25.4

1.3

1.1

Tata Motors

Neutral

381

109,921

303,167

343,649

11.8

13.8

33.1

54.7

11.5

7.0

1.9

1.5

16.9

23.0

0.4

0.3

TVS Motor

Neutral

584

27,736

13,992

16,216

9.0

9.4

17.1

20.3

34.2

28.8

9.1

7.0

29.7

27.7

1.9

1.6

Amara Raja Batteries

Accumulate

797

858

13,605

6,140

7,122

14.3

15.6

29.3

39.0

27.2

20.4

4.6

3.9

17.1

19.0

2.2

1.9

Exide Industries

Neutral

209

17,765

8,689

9,854

15.1

15.2

9.7

11.0

21.7

19.0

3.8

3.4

15.7

16.1

1.8

1.5

Apollo Tyres

Neutral

270

13,726

15,739

17,326

13.3

14.6

20.4

26.7

13.2

10.1

1.6

1.4

20.4

26.7

1.1

1.0

Ceat

Neutral

1,703

6,887

6,661

7,717

11.1

14.2

116.2

178.2

14.7

9.6

2.5

2.1

15.2

21.3

1.1

1.0

JK Tyres

Neutral

151

3,434

8,318

9,239

16.2

16.4

21.0

27.5

7.2

5.5

1.4

1.1

19.1

20.4

0.9

0.7

Swaraj Engines

Neutral

1,959

2,433

788

889

16.4

16.5

71.6

81.0

27.4

24.2

7.9

7.3

29.6

31.0

2.7

2.4

Subros

Neutral

225

1,350

1,855

2,135

11.6

11.8

10.3

14.7

22.0

15.4

3.3

2.9

15.8

19.1

0.9

0.8

Capital Goods

BEML

Neutral

1,886

7,853

4,286

5,194

7.1

8.2

42.9

58.1

44.0

32.5

3.6

3.3

7.6

8.7

1.9

1.5

Bharat Electronics

Neutral

183

40,764

10,258

12,470

19.6

19.5

7.3

8.6

25.0

21.2

0.5

0.4

20.4

21.9

3.5

2.8

Voltas

Neutral

537

17,770

6,778

8,004

9.6

11.0

17.1

22.4

31.4

24.0

7.5

6.6

17.7

19.8

2.3

1.9

BHEL

Neutral

130

31,758

33,200

39,167

6.8

9.5

6.2

11.2

20.9

11.6

1.0

0.9

4.6

8.0

0.5

0.4

Blue Star

Accumulate

714

760

6,841

5,101

5,997

6.0

7.0

17.9

26.6

39.9

26.9

8.5

7.8

21.9

29.0

1.4

1.2

CG Power and Industrial

Neutral

5,102

6,555

7,292

7.5

0.8

8,140.0

101.8

1.3

0.1

1.2

0.9

0.8

Solutions

Greaves Cotton

Neutral

144

3,523

1,778

1,993

14.7

15.1

8.1

9.1

17.8

15.9

4.0

3.7

21.8

23.6

1.7

1.6

www.angelbroking.com

Stock Watch

August 21, 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

Neutral

295

7,584

9,779

11,113

9.4

9.8

14.2

18.2

20.8

16.2

4.0

3.3

21.1

22.1

1.0

0.9

KEI Industries

Buy

216

258

1,678

3,001

3,391

10.0

13.0

16.1

16.6

13.4

3.0

2.5

18.2

18.7

0.7

Thermax

Neutral

896

10,673

4,125

4,747

10.3

10.8

26.7

31.5

33.6

28.4

3.8

3.4

11.2

12.0

2.3

2.0

VATech Wabag

Accumulate

630

681

3,439

3,867

4,126

9.6

10.0

34.9

39.8

18.1

15.8

3.0

2.6

17.7

17.5

0.9

0.8

Cement

ACC

Neutral

1,790

33,609

12,255

13,350

13.5

14.3

58.0

66.2

30.9

27.0

3.7

3.4

11.5

12.2

2.7

2.5

Ambuja Cements

Neutral

275

54,556

10,250

11,450

17.5

19.0

7.2

8.3

38.2

33.1

2.7

2.6

7.0

7.8

5.1

4.5

India Cements

Neutral

183

5,636

6,135

6,750

14.8

15.2

8.5

11.5

21.5

15.9

1.1

1.0

4.8

6.2

1.3

1.1

JK Cement

Neutral

1,006

7,033

4,150

4,775

19.2

20.0

49.0

63.5

20.5

15.8

3.3

2.8

17.0

18.5

2.1

1.8

J K Lakshmi Cement

Neutral

418

4,917

3,422

3,757

15.5

17.0

13.5

23.2

31.0

18.0

3.2

2.8

10.8

15.5

1.8

1.6

Orient Cement

Neutral

155

3,176

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

4,007

110,014

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

218

3,071

1,846

2,203

14.5

12.1

13.7

18.1

16.0

1.0

0.9

17.5

16.7

1.7

1.4

Larsen & Toubro

Neutral

1,131

158,373

95,787

109,476

10.2

11.6

44.5

50.8

25.4

22.3

3.2

2.9

12.9

13.1

2.2

2.0

Gujarat Pipavav Port

Neutral

138

6,647

739

842

61.6

62.7

5.1

6.2

27.0

22.4

3.4

3.3

12.7

14.9

8.5

7.3

PNC Infratech

Neutral

145

3,726

2,040

2,935

13.0

6.4

9.0

22.7

16.1

0.6

0.5

9.7

12.2

1.8

1.3

Simplex Infra

Neutral

490

2,426

6,012

6,619

11.6

11.7

21.1

31.0

23.3

15.8

1.6

1.5

6.5

8.6

0.9

0.8

Sadbhav Engineering

Accumulate

269

298

4,610

3,823

4,426

10.7

10.8

10.3

11.8

26.1

22.8

3.1

2.7

10.1

10.5

1.5

1.3

NBCC

Neutral

208

18,747

9,099

12,706

6.4

7.3

9.6

28.6

21.8

1.3

1.0

27.5

30.5

1.9

1.4

MEP Infra

Neutral

116

1,879

2,403

2,910

18.3

16.8

2.4

6.1

49.2

19.0

18.7

12.6

35.2

55.8

1.9

1.6

SIPL

Neutral

102

3,577

2,060

2,390

46.8

47.7

(5.8)

(3.1)

3.8

4.3

(14.2)

(2.3)

6.5

6.1

Engineers India

Neutral

153

10,317

1,795

2,611

21.1

22.4

5.9

8.1

26.0

18.9

1.9

1.8

12.9

16.1

4.1

2.7

Financials

Axis Bank

Buy

491

580

117,632

32,558

35,843

3.5

3.2

27.8

41.0

17.6

12.0

1.9

1.7

11.4

14.9

Bank of Baroda

Neutral

147

33,894

22,533

26,079

2.4

12.0

20.9

12.2

7.0

0.8

6.6

11.0

Canara Bank

Neutral

332

19,851

17,925

20,235

2.0

2.1

18.5

36.5

18.0

9.1

0.7

0.6

3.4

6.2

Can Fin Homes

Neutral

2,898

7,715

586

741

3.5

107.8

141.0

26.9

20.6

5.9

4.8

24.1

25.6

Cholamandalam Inv. &

Accumulate

1,157

1,230

18,089

2,826

3,307

6.3

53.7

64.6

21.6

17.9

3.7

3.1

18.3

18.9

Fin. Co.

Dewan Housing Finance Buy

450

520

14,121

2,676

3,383

2.4

2.7

37.4

49.7

12.0

9.1

1.6

1.4

13.8

16.2

Equitas Holdings

Buy

159

235

5,380

1,125

1,380

9.6

9.8

1.5

6.0

105.9

26.5

2.4

2.2

2.4

8.2

Federal Bank

Buy

109

125

21,108

4,896

5,930

2.8

3.1

5.4

7.6

20.2

14.3

1.7

1.6

8.5

11.0

www.angelbroking.com

Stock Watch

August 21, 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

HDFC Bank

Neutral

1,754

451,603

55,236

63,253

4.5

4.4

68.9

82.4

25.5

21.3

4.4

3.7

18.7

18.5

ICICI Bank

Accumulate

293

315

187,971

42,361

51,378

3.6

3.9

18.4

25.7

16.0

11.4

1.7

11.3

15.0

Karur Vysya Bank

Accumulate

143

160

8,614

3,289

3,630

3.7

3.9

10.8

14.1

13.2

10.1

1.6

1.4

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

142

30,281

23,708

25,758

2.1

5.9

16.4

24.2

8.7

0.7

3.0

8.3

RBL Bank

Neutral

527

19,999

2,309

2,888

2.6

2.5

16.4

19.1

32.2

27.7

4.0

3.6

13.3

13.8

Repco Home Finance

Buy

663

825

4,146

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

5,034

3,195

3,567

3.0

3.1

3.0

3.8

9.2

7.3

0.9

0.8

10.5

11.9

St Bk of India

Neutral

279

240,532

105,827

121,056

2.4

2.5

16.1

25.6

17.3

10.9

1.4

1.2

6.6

9.9

Union Bank

Neutral

132

9,078

14,650

16,225

2.3

23.1

32.5

5.7

4.1

0.4

7.1

9.2

Yes Bank

Neutral

1,720

78,726

11,088

13,138

3.0

2.9

84.0

99.3

20.5

17.3

3.1

2.7

16.3

16.8

FMCG

Akzo Nobel India

Neutral

1,767

8,475

3,164

3,607

13.8

13.7

58.6

67.9

30.2

26.0

7.4

6.5

24.5

25.1

2.5

2.2

Asian Paints

Neutral

1,140

109,339

17,603

20,615

18.6

2,128.9

2,543.3

0.5

11.3

9.5

28.0

28.9

6.0

5.1

Britannia

Neutral

4,247

50,990

9,690

11,278

14.8

15.4

84.0

101.0

50.6

42.1

18.4

14.6

40.6

39.0

5.2

4.5

Colgate

Neutral

1,069

29,073

4,420

5,074

24.9

25.3

28.6

32.8

37.4

32.6

14.7

11.9

43.8

40.5

6.3

5.5

Dabur India

Neutral

311

54,792

8,346

9,344

19.6

19.9

7.8

9.0

39.9

34.6

8.0

7.3

25.2

24.8

6.2

5.4

GlaxoSmith Con*

Neutral

5,399

22,707

5,072

5,760

18.2

18.4

176.3

199.2

30.6

27.1

6.5

5.9

21.2

21.7

3.8

3.3

Godrej Consumer

Neutral

920

62,658

10,171

11,682

20.8

21.5

21.7

27.1

42.4

33.9

9.5

8.2

22.3

23.4

6.3

5.4

HUL

Neutral

1,200

259,671

37,077

41,508

20.3

21.8

5,189.9

6,318.5

0.2

36.6

31.2

74.8

82.0

6.9

6.1

ITC

Neutral

282

343,038

44,588

49,853

37.0

37.3

9.6

11.0

29.4

25.6

7.2

6.9

25.1

27.3

7.2

6.4

Marico

Neutral

319

41,205

6,788

7,766

18.5

19.2

7.1

8.5

45.0

37.6

15.7

13.5

36.9

38.0

5.9

5.2

Nestle*

Neutral

6,646

64,073

10,083

11,182

20.0

20.9

119.7

141.3

55.5

47.0

195.7

178.8

36.7

39.8

6.0

5.4

Tata Global

Neutral

194

12,269

7,121

7,641

11.9

12.3

6.9

8.0

28.2

24.3

1.9

1.8

6.8

7.2

1.5

1.4

Procter & Gamble

Neutral

8,229

26,711

3,034

3,579

27.1

27.7

167.7

198.8

49.1

41.4

13.2

11.3

28.8

29.5

8.2

6.9

Hygiene

HCL Tech^

Buy

876

1,014

125,033

52,342

57,053

20.9

62.8

67.6

14.0

13.0

3.1

2.7

22.4

20.6

2.1

1.8

Infosys

Buy

923

1,179

212,031

73,963

80,619

26.0

64.4

69.3

14.3

13.3

2.8

2.6

19.7

19.6

2.3

2.1

TCS

Accumulate

2,513

2,651

495,139

127,403

138,870

27.6

144.5

156.0

17.4

16.1

5.2

4.8

29.7

29.8

3.6

3.2

Tech Mahindra

Buy

428

533

41,716

31,015

33,496

15.0

35.6

38.1

12.0

11.2

2.0

1.9

17.0

16.3

1.1

1.0

Wipro

Neutral

288

140,250

58,536

61,858

20.3

18.2

19.1

15.8

15.1

2.5

2.1

14.6

13.4

2.3

2.2

www.angelbroking.com

Stock Watch

August 21, 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

Media

D B Corp

Neutral

375

6,898

2,404

2,625

30.5

31.5

23.7

26.9

15.8

13.9

3.7

3.2

23.5

22.8

2.7

2.5

HT Media

Neutral

2,020

2,589

2,830

15.1

15.4

8.3

10.9

10.5

8.0

0.8

8.4

10.4

0.3

0.2

Jagran Prakashan

Buy

172

225

5,631

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

742

29,233

3,238

3,789

51.9

55.1

30.9

38.0

24.0

19.5

6.9

6.0

30.0

31.0

8.5

7.2

Hindustan Media

Neutral

269

1,977

1,002

1,074

23.3

23.5

29.2

33.8

9.2

8.0

1.4

1.2

15.6

15.4

1.0

0.7

Ventures

TV Today Network

Buy

240

344

1,432

667

727

27.7

18.6

20.1

12.9

12.0

2.0

2.1

15.6

17.3

1.7

1.6

Music Broadcast Limited Buy

376

434

2,146

271

317

91.0

109.0

6.0

10.0

62.7

37.6

3.9

3.6

6.5

9.3

7.5

6.2

Metals & Mining

Coal India

Neutral

243

151,026

82,301

91,235

17.0

18.0

17.1

20.5

14.2

11.9

2.7

2.5

45.0

55.0

1.5

1.3

Hind. Zinc

Neutral

294

124,119

22,108

24,555

57.0

58.0

22.1

26.3

13.3

11.2

4.3

3.5

32.0

35.0

4.6

3.8

Hindalco

Neutral

230

51,589

102,350

105,355

13.5

14.5

21.5

24.5

10.7

9.4

1.5

1.2

15.0

15.2

1.1

1.0

JSW Steel

Neutral

237

57,373

64,500

68,245

21.1

21.5

20.1

21.2

11.8

11.2

2.2

1.9

1.6

1.5

NMDC

Neutral

121

38,172

10,209

11,450

47.0

48.0

11.1

12.1

10.9

10.0

1.5

1.4

3.3

2.9

SAIL

Neutral

24,698

54,100

63,555

3.0

10.0

(10.0)

1.5

39.9

0.8

1.5

1.2

Vedanta

Neutral

298

110,921

81,206

87,345

28.0

29.0

26.5

33.5

11.3

8.9

2.6

2.2

2.1

1.8

Tata Steel

Neutral

625

60,740

121,445

126,500

16.2

17.2

65.4

81.3

9.6

7.7

1.5

1.3

1.0

0.9

Oil & Gas

GAIL

Neutral

382

64,574

53,115

52,344

14.2

15.3

30.0

31.1

12.7

12.3

1.6

1.5

0.9

ONGC

Neutral

161

206,294

83,111

84,934

44.2

44.9

16.4

16.9

9.8

9.5

1.2

1.1

2.4

2.3

Indian Oil Corp

Neutral

427

207,517

396,116

432,560

8.5

8.8

40.1

42.2

10.7

10.1

1.8

1.7

0.7

0.6

Reliance Industries

Neutral

1,575

512,304

257,711

267,438

17.0

18.2

89.1

89.5

17.7

17.6

1.6

1.5

1.6

Pharmaceuticals

Alembic Pharma

Buy

516

600

9,719

3,903

4,584

18.2

19.2

21.8

27.2

23.7

19.0

4.3

3.6

19.8

20.6

2.5

2.1

Alkem Laboratories Ltd

Buy

1,800

2,161

21,520

6,901

7,850

18.4

19.1

85.0

100.5

21.2

17.9

4.3

3.6

20.2

20.1

3.1

2.7

Aurobindo Pharma

Buy

705

823

41,275

17,086

19,478

22.1

22.0

44.7

51.4

15.8

13.7

3.5

2.8

24.7

22.7

2.5

2.2

Aventis*

Neutral

4,034

9,291

2,508

2,862

16.8

139.9

153.8

28.8

26.2

4.2

3.4

23.5

25.8

3.3

2.7

Cadila Healthcare

Reduce

474

426

48,474

11,584

13,228

20.3

20.4

18.7

21.3

25.3

22.2

5.6

4.6

24.6

22.9

4.0

3.5

Cipla

Sell

566

461

45,520

16,619

19,437

15.4

16.2

19.7

24.3

28.7

23.3

3.3

2.9

12.0

13.2

2.9

2.5

Dr Reddy's

Buy

1,983

2,419

32,868

15,844

17,973

17.6

18.2

91.7

111.0

21.6

17.9

2.5

2.2

11.9

13.0

2.3

2.0

GSK Pharma*

Neutral

2,391

20,252

3,260

3,651

15.0

18.0

46.1

58.6

51.9

40.8

10.7

11.0

20.0

26.5

6.1

5.6

Indoco Remedies

Sell

194

153

1,785

1,154

1,310

14.9

11.3

12.7

17.1

15.3

2.4

2.2

15.0

1.7

1.4

Ipca labs

Buy

413

620

5,207

3,593

4,022

14.5

15.5

19.4

25.2

21.3

16.4

1.9

1.7

9.5

11.2

1.5

1.3

www.angelbroking.com

Stock Watch

August 21, 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

Lupin

Buy

941

1,467

42,498

18,657

21,289

21.3

23.3

52.8

66.7

17.8

14.1

2.7

2.3

16.3

17.5

2.3

1.9

Natco Pharma

Accumulate

756

796

13,175

1,836

1,946

31.8

28.9

22.1

20.6

34.2

36.7

6.9

6.1

20.1

16.7

7.0

6.6

Sun Pharma

Buy

470

712

112,765

32,899

36,451

26.9

25.4

31.6

32.3

14.9

14.6

2.6

2.3

18.7

18.8

3.1

2.6

Syngene International

Buy

453

557

9,057

1,402

1,823

32.8

36.0

15.9

20.7

28.5

21.9

5.3

4.4

18.7

20.0

6.4

4.9

Power

Tata Power

Neutral

21,719

32,547

33,806

20.5

4.7

5.4

17.1

15.0

1.6

1.4

10.5

1.7

1.6

NTPC

Neutral

173

142,894

86,070

101,246

28.3

30.7

12.9

16.2

13.4

10.7

1.4

1.3

10.6

12.4

3.0

2.7

Power Grid

Neutral

223

116,586

29,183

32,946

89.7

90.0

18.0

20.8

12.4

10.7

2.1

1.8

17.7

18.2

7.9

7.3

Real Estate

Prestige Estate

Neutral

265

9,919

4,607

5,146

21.0

22.2

7.9

9.8

33.5

27.0

2.1

1.9

10.3

12.0

3.3

3.0

MLIFE

Buy

405

522

2,078

487

590

12.3

17.8

21.0

31.2

19.3

13.0

1.0

5.2

7.4

3.0

2.4

Telecom

Bharti Airtel

Neutral

422

168,530

97,903

105,233

36.0

36.3

9.3

11.1

45.3

38.2

2.2

2.1

5.0

5.6

2.7

2.4

Idea Cellular

Neutral

32,550

35,012

37,689

27.1

27.7

(4.4)

(2.7)

1.4

1.5

(6.8)

(4.6)

2.2

2.0

zOthers

Abbott India

Neutral

4,275

9,083

3,244

3,723

14.9

16.1

167.5

209.4

25.5

20.4

5.6

4.7

23.7

24.8

2.4

2.1

Asian Granito

Buy

409

480

1,231

1,169

1,286

12.5

16.0

19.7

25.6

20.8

2.7

2.4

10.7

11.6

1.3

1.1

Bajaj Electricals

Buy

330

395

3,342

4,646

5,301

6.7

7.6

16.1

22.3

20.5

14.8

3.3

2.8

16.4

19.2

0.7

0.6

Banco Products (India)

Neutral

211

1,511

1,530

1,695

13.2

12.7

19.0

20.0

11.1

10.6

1.8

1.6

0.2

0.9

99.5

Coffee Day Enterprises

Neutral

242

4,991

3,494

3,913

17.4

18.0

4.8

5.7

42.5

2.2

2.0

0.1

1.9

1.7

Ltd

Elecon Engineering

Neutral

564

171

201

15.0

16.2

36.0

43.0

1.4

1.2

0.1

2.7

2.3

Garware Wall Ropes

Neutral

876

1,917

928

1,003

15.2

39.4

43.2

22.2

20.3

3.7

3.1

16.5

15.4

1.9

1.7

Goodyear India*

Neutral

818

1,888

1,717

1,866

11.8

12.3

47.9

49.8

17.1

16.4

2.6

2.3

15.6

15.7

0.8

113.8

Hitachi

Neutral

2,036

5,537

2,355

2,715

10.3

10.8

49.0

60.9

41.6

33.4

9.7

7.7

0.2

2.4

2.0

HSIL

Neutral

353

2,553

2,240

2,670

14.6

15.0

17.0

22.0

20.8

16.1

1.7

1.6

0.1

1.4

1.1

Interglobe Aviation

Neutral

1,270

45,916

22,570

27,955

14.2

15.0

63.6

81.8

20.0

15.5

10.5

8.9

0.5

0.6

1.7

1.3

Jyothy Laboratories

Neutral

377

6,840

1,781

2,044

14.1

15.0

9.4

10.5

40.3

35.9

8.6

8.0

0.2

4.1

3.5

Linc Pen & Plastics

Neutral

247

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

608

734

542

642

20.1

21.0

41.6

56.8

14.6

10.7

2.0

1.7

0.1

0.2

1.8

1.6

Mirza International

Neutral

157

1,888

1,148

1,285

18.0

8.0

9.4

19.5

16.8

3.2

2.7

16.3

16.1

1.8

1.6

Navkar Corporation

Buy

189

265

2,694

561

617

41.5

11.5

12.7

16.4

14.9

1.7

1.6

10.5

10.4

5.5

4.8

Nilkamal

Neutral

1,648

2,459

2,317

2,525

11.4

11.1

96.0

105.0

17.2

15.7

2.9

2.5

0.2

1.0

0.9

Parag Milk Foods

Neutral

236

1,983

1,987

2,379

7.6

9.0

12.4

18.3

19.0

12.9

2.7

2.4

8.2

13.2

1.1

0.9

www.angelbroking.com

Stock Watch

August 21, 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

Radico Khaitan

Neutral

167

2,216

1,811

1,992

13.2

8.1

8.8

20.6

18.9

2.1

2.3

10.1

12.0

1.6

1.4

Relaxo Footwears

Neutral

489

5,874

1,981

2,310

13.7

14.5

12.0

15.5

40.8

31.6

7.9

6.4

0.2

3.0

2.6

Siyaram Silk Mills

Buy

2,018

2,500

1,892

1,769

1,981

12.7

113.1

131.1

17.8

15.4

2.8

2.4

15.5

1.2

1.1

Styrolution ABS India* Neutral

878

1,544

1,800

1,980

8.0

8.1

42.0

46.2

20.9

19.0

2.3

2.1

0.1

1.0

0.9

Surya Roshni

Neutral

277

1,213

4,870

5,320

7.7

7.8

22.8

28.1

12.2

9.9

1.6

1.4

0.1

0.5

0.4

TVS Srichakra

Neutral

3,388

2,595

2,729

2,893

12.7

12.5

248.5

265.0

13.6

12.8

3.9

3.2

0.3

1.0

0.9

Visaka Industries

Neutral

498

791

1,104

1,214

12.1

12.6

31.0

37.9

16.1

13.2

2.0

1.8

0.1

0.9

0.8

VIP Industries

Accumulate

195

218

2,756

1,450

1,693

10.4

10.5

6.5

7.8

29.8

25.0

6.3

5.5

21.1

22.1

1.9

1.6

Navin Fluorine

Accumulate

680

730

3,352

945

1,154

22.4

22.6

28.7

34.8

23.7

19.6

3.9

3.4

3.1

2.4

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 19, 2017

www.angelbroking.com

Market Outlook

August 21, 2017

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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