Market Outlook

August 23, 2016

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian markets are likely to open on a flat note tracking SGX Nifty.

BSE Sensex

(0.3)

(91)

27,986

Nifty

(0.4)

(38)

8,629

US markets showed a lack of direction and closed flat on Monday. This lack of

direction was due to investors confusion over the possible direction of interest rates.

Mid Cap

(0.4)

(54)

12,981

Oil stocks closed significantly lower due to weakness in crude oil price acted as a

Small Cap

(0.1)

(17)

12,442

drag on the indices.

Bankex

(0.5)

(120)

22,176

European markets drifted lower as investors awaited decisions by central bankers by

the end of the week. The FTSE was dragged significantly lower due to weakness in

Global Indices

Chg (%)

(Pts)

(Close)

mining and oil stocks. This was due to overall weakness in commodity prices in

Dow Jones

(0.1)

(23)

18,529

metals and oil.

Nasdaq

5,244

Indian markets continued their losses from Friday to close lower on Monday. Fears

FTSE

(0.4)

(30)

6,828

over a delay in reduction of interest rates and cautious global sentiment over the last

Nikkei

0.3

16,598

session were the primary sources of investor bearishness. IT stocks were the major

Hang Seng

0.3

22,998

losers along with PSU banks and the auto sector while FMCG stocks closed positive.

Shanghai Com

(0.7)

(23)

3,085

Result Preview

 Result Preview: Aurobindo Pharma

Advances / Declines

BSE

NSE

Detailed analysis on Pg2

Advances

1,268

690

Investor’s Ready Reckoner

Declines

1,463

892

Unchanged

204

105

Key Domestic & Global Indicators

Stock Watch: Latest investment recommendations on 150+ stocks

Volumes (` Cr)

Refer Pg5 onwards

BSE

3,056

Top Picks

NSE

18,165

CMP

Target

Upside

Company

Sector

Rating

(`)

(%)

Amara Raja

Auto/Auto Ancillary

Buy

895

1,076

20.3

Net Inflows (` Cr)

Net

Mtd

Ytd

HCL Tech

Buy

772

1,000

29.5

FII

(301)

7,317

38,397

HDFC Bank

Financials

Accumulate

1,249

1,350

8.1

MFs

(4,811)

8,599

Bharat Electronics

Capital Goods

Buy

1,222

1,414

15.7

Navkar Corporation Others

Buy

201

265

32.0

Top Gainers

Price (`)

Chg (%)

More Top Picks on P3

Oberoirlty

314

5.2

Key Upcoming Events

Biocon

882

4.3

Consensus

Date

Region

Event Description

Reading

Expectations

Igl

729

4.3

Aug 23

New Home sales

592.0

579.0

Escorts

316

3.7

Aug 23 Germany

PMI Services

54.4

Gmdcltd

3.6

Aug 24 Germany

PMI Manufacturing

53.8

Aug 26

GDP QoQ (Annualised)

1.2

1.1

Top Losers

Price (`)

Chg (%)

Aug 26

UK GDP YoY

2.2

6.(

Welcorp

(5.2)

More Events on Pg4

Suntv

459

(4.9)

Bharatfin

749

(4.8)

Indhotel

130

(3.9)

Vrllog

296

(3.7)

As on August 22, 2016

www.angelbroking.com

Market Outlook

August 23, 2016

Result Preview

Aurobindo Pharma (CMP: `750 / TP: `877 /Upside: 16.9%)

For 1QFY2017, sales are expected to come in at `3,900cr V/s `3,320cr in

1QFY2016, a yoy growth of 17.5%, mainly driven by exports. On the operating

profit front, the EBITDA margins came in at 22.8% expected V/s 21.8% in

1QFY2016, mainly driven by gross margin expansion (57.7% in 1QFY2017 V/s

54.6% in 1QFY2016). Thus, the Adj. net profit came in at `576cr V/s `451cr in

1QFY2016.We maintain our buy rating.

Y/E

Sales OPM

PAT

EPS ROE P/E P/BV EV/EBITDA EV/Sales

Mar

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017E

15,720

23.7

2,418

41.4

29.6

18.1

4.7

12.7

3.0

FY2018E

18,078

23.7

2,763

47.3

26.1

15.9

3.7

11.0

2.6

Economic and Political News

 Urjit Patel appointed as the new RBI governor

 Central Govt. announces plans to provide `90,000 cr to Self Help Groups

over the next two years

 Union shipping minister asks major ports to develop inland water ways.

Corporate News

 Escorts to focus on core businesses after divesting auto parts business

 SpiceJet adds new flights connecting the North-East

 Shipping Corporation to spend `1700 cr on capex in FY17

Quarterly Bloomberg Brokers Consensus Estimate

Tata Power Ltd Consol - Aug 23, 2016

Particulars (` cr)

1QFY17E

1QFY16

y-o-y (%)

4QFY16 q-o-q (%)

Net sales

9,275

9,235

0.4

9,375

(1.1)

EBITDA

1,995

2,181

(8.5)

1,913

4.3

EBITDA margin (%)

21.5

23.6

20.4

Net profit

341

241

41.3

360

(5.3)

www.angelbroking.com

Market Outlook

August 23, 2016

Top Picks ★★★★★

Large Cap

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

To outpace battery industry growth due to better technological

Amara Raja Batteries

15,281

895

1,076

20.3

products leading to market share gains in both the automotive

OEM and replacement segments.

Uptick in defense capex by government, coupled with BELs

Bharat Electronics

29,338

1,222

1,414

15.7

strong market positioning, indicate good times ahead for BEL.

HCL Tech

1,08,946

772

1,000

29.5

Stock is trading at attractive valuations & factors all bad news.

Strong visibility for a robust 20% earnings trajectory, coupled

HDFC Bank

3,16,176

1,249

1,350

8.1

with high quality of earnings on account of high quality retail

business and strategic focus on highly rated corporates.

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

Infosys

2,33,232

1,015

1,370

34.9

be a US$20bn in FY2020.

Strong market positioning within the domestic AC markets to

Voltas

12,345

373

407

9.1

continue, EMP business set to revive

Source: Company, Angel Research

Mid Cap

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

Among the top 4 players in the consumer durables segment.

Bajaj Electricals

2,642

262

277

5.9

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

Strong order book lends earnings visibility.

Favourable outlook for the AC industry to augur well for

Cooling products business which is out pacing the market

Blue Star

4,681

491

527

7.4

growth. EMPPAC division's profitability to improve once

operating environment turns around.

Strong loan growth backed by diversified loan portfolio and

Equitas Holdings

6,206

185

235

27.0

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

dilution remains low. Attractive valuations considering growth.

Expectations of above average monsoon augurs well for

Goodyear India

1,281

556

631

13.6

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

tyre segment.

Commencement of new projects, downtrend in the interest rate

IL&FS Transport

2,232

37.1

cycle, to lead to stock re-rating

Economic recovery to have favourable impact on advertising &

Jagran Prakashan

6,004

184

205

11.6

circulation revenue growth. Further, the acquisition of a radio business

(Radio City) would also boost the company`s revenue growth.

Speedier execution and speedier sales, strong revenue visibility

Mahindra Lifespace

1,774

432

554

28.1

in short-to-long run, attractive valuations

Massive capacity expansion along with rail advantage at ICD as

Navkar Corporation

2,864

201

265

32.0

well CFS augurs well for the company

Earnings boost on back of stable material prices and favourable

Radico Khaitan

1,310

125

27.0

pricing environment. Valuation discount to peers provides

additional comfort

Strong brands and distribution network would boost growth

Siyaram Silk Mills

1,120

1,195

1,347

12.8

going ahead. Stock currently trades at an inexpensive valuation.

Market leadership in Hindi news genre and no. 2 viewership

TV Today Network

1,776

298

363

22.0

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

anticipated growth in ad spends by corporates to benefit the stock.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

August 23, 2016

Key Upcoming Events

Result Calendar

Date

Company

August 23, 2016

Tata Power Co.

August 25, 2016

Jyoti Structures

August 26, 2016

Tata Motors, Abbot India

Source: Bloomberg, Angel Research

Global economic events release calendar

Bloomberg Data

Date

Time

Country Event Description

Unit

Period

Last Reported Estimated

Aug 23, 2016

2:30 PM Euro Zone

Euro-Zone CPI (YoY)

% Jul F

0.20

7:30 PM

New home sales

Thousands

Jul

592.00

577.00

11:30 AM Germany

GDP nsa (YoY)

% Change 2Q F

3.10

1:00 PM Germany

PMI Services

Value Aug P

54.40

Aug 24, 2016

1:00 PM Germany

PMI Manufacturing

Value Aug P

53.80

7:30 PM

Existing home sales

Million

Jul

5.57

5.55

Aug 26, 2016

6:00 PM

GDP Qoq (Annualised)

% Change 2Q S

1.20

1.10

2:00 PM

GDP (YoY)

% Change 2Q P

2.20

Aug 30, 2016

7:30 PM

Consumer Confidence S.A./ 1985=100 Aug

97.30

97.00

Aug 31, 2016

1:25 PM Germany

Unemployment change (000's)

Thousands Aug

(7.00)

Sep 01, 2016

2:00 PM

PMI Manufacturing

Value

Aug

48.20

6:30 AM

China

PMI Manufacturing

Value

Aug

49.90

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

August 23, 2016

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

9.0

8.3

12.0

9.9

7.8

7.7

7.9

10.0

8.0

7.5

7.6

7.2

8.0

6.3

6.7

6.6

6.7

7.0

6.4

6.0

3.7

5.8

4.0

6.0

1.9

2.1

1.1

2.0

0.3

5.0

4.0

(2.0)

(0.9)

(1.3)

(1.6)

(4.0)

3.0

(3.4)

(6.0)

Source: CSO, Angel Research

Source: MOSPI, Angel Research

Exhibit 3: Monthly CPI inflation trends

Exhibit 4: Manufacturing and services PMI

56.0

Mfg. PMI

Services PMI

(%)

7.0

6.1

54.0

5.6

5.7

5.8

5.4

5.5

6.0

5.3

5.0

4.8

52.0

5.0

4.4

3.7

4.0

50.0

3.0

48.0

2.0

46.0

1.0

44.0

Source: MOSPI, Angel Research

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

Exhibit 5: Exports and imports growth trends

Exhibit 6: Key policy rates

(%)

Exports yoy growth

Imports yoy growth

(%)

Repo rate

Reverse Repo rate

CRR

5.0

7.50

0.0

7.00

(5.0)

6.50

6.00

(10.0)

5.50

(15.0)

5.00

(20.0)

4.50

(25.0)

4.00

(30.0)

3.50

(35.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Stock Watch

August 23, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Agri / Agri Chemical

Rallis

Neutral

217

4,211

1,937

2,164

13.3

14.3

9.0

11.0

24.1

19.7

4.2

3.7

18.4

19.8

2.3

2.0

United Phosphorus

Accumulate

652

684

27,958

15,176

17,604

18.5

37.4

44.6

17.4

14.6

3.4

2.8

21.4

21.2

1.9

1.6

Auto & Auto Ancillary

Ashok Leyland

Buy

111

24,816

22,407

26,022

10.6

5.2

6.4

16.7

13.6

3.8

3.2

23.6

24.7

1.2

1.0

Bajaj Auto

Neutral

2,931

84,826

25,093

27,891

19.5

19.2

143.9

162.5

20.4

18.0

5.7

4.9

30.3

29.4

3.1

2.7

Bharat Forge

Neutral

834

19,406

7,726

8,713

20.5

21.2

35.3

42.7

23.6

19.5

4.4

3.9

18.9

20.1

2.6

2.3

Eicher Motors

Neutral

21,795

59,198

16,583

20,447

17.5

18.0

598.0

745.2

36.5

29.3

12.5

9.5

41.2

38.3

3.5

2.7

Gabriel India

Neutral

115

1,653

1,544

1,715

9.0

9.3

5.4

6.3

21.3

18.3

4.0

3.6

18.9

19.5

1.0

0.9

Hero Motocorp

Neutral

3,338

66,655

31,253

35,198

15.3

15.0

172.3

192.1

19.4

17.4

7.1

6.1

38.9

37.0

2.0

1.8

Jamna Auto Industries Neutral

219

1,745

1,486

1,620

9.8

9.9

15.0

17.2

14.6

12.7

3.2

2.7

21.8

21.3

1.3

1.2

L G Balakrishnan & Bros Neutral

459

721

1,302

1,432

11.6

11.9

43.7

53.0

10.5

8.7

1.5

1.4

13.8

14.2

0.6

Mahindra and Mahindra Neutral

1,443

89,648

46,534

53,077

11.6

11.7

67.3

78.1

21.4

18.5

3.5

3.0

15.4

15.8

1.9

1.7

Maruti

Neutral

4,838

146,149

69,186

82,217

14.7

14.4

198.5

241.4

24.4

20.0

4.7

3.8

20.2

20.0

1.8

1.5

Minda Industries

Neutral

1,276

2,024

2,728

3,042

9.0

9.1

68.2

86.2

18.7

14.8

4.2

3.4

23.8

24.3

0.7

0.6

Motherson Sumi

Neutral

327

43,267

45,896

53,687

7.8

8.3

13.0

16.1

25.1

20.3

8.1

6.5

34.7

35.4

1.0

0.9

Rane Brake Lining

Neutral

667

528

511

562

11.3

11.5

28.1

30.9

23.7

21.6

3.6

3.3

15.3

15.0

1.1

Setco Automotive

Neutral

609

741

837

13.0

15.2

17.0

3.0

2.7

0.5

15.8

16.3

1.2

1.1

Tata Motors

Neutral

504

145,443

300,209

338,549

8.9

8.4

42.7

54.3

11.8

9.3

1.9

1.6

15.6

17.2

0.6

0.5

TVS Motor

Accumulate

306

330

14,552

13,390

15,948

6.9

7.1

12.8

16.5

24.0

18.5

6.0

4.7

26.3

27.2

1.1

0.9

Amara Raja Batteries

Buy

895

1,076

15,281

5,717

6,733

18.7

18.9

38.4

48.9

23.3

18.3

5.8

4.7

25.3

24.8

2.6

2.1

Exide Industries

Neutral

175

14,901

7,439

8,307

15.0

8.1

9.3

21.6

18.9

3.0

2.7

14.3

16.7

1.6

1.5

Apollo Tyres

Neutral

171

8,692

12,877

14,504

14.3

13.9

21.4

23.0

8.0

7.4

1.2

1.1

16.4

15.2

0.9

0.8

Ceat

Buy

844

1,119

3,414

7,524

8,624

13.0

12.7

131.1

144.3

6.4

5.9

1.2

1.0

19.8

18.6

0.5

JK Tyres

Neutral

111

2,506

7,455

8,056

15.0

21.8

24.5

5.1

4.5

1.1

0.9

22.8

21.3

0.5

0.4

Swaraj Engines

Neutral

1,150

1,428

660

810

15.2

16.4

54.5

72.8

21.1

15.8

6.6

6.0

31.5

39.2

2.0

1.6

Subros

Neutral

102

613

1,488

1,681

11.7

11.9

6.4

7.2

16.0

14.3

1.7

1.5

10.8

11.4

0.7

0.6

Indag Rubber

Neutral

173

455

286

326

19.8

16.8

11.7

13.3

14.8

13.0

2.5

2.3

17.8

17.1

1.2

1.1

Capital Goods

ACE

Neutral

424

709

814

4.1

4.6

1.4

2.1

30.6

20.4

1.3

1.2

4.4

6.0

0.8

0.7

BEML

Accumulate

1,022

1,157

4,255

3,451

4,055

6.3

9.2

31.4

57.9

32.5

17.7

2.0

1.8

6.3

10.9

1.4

1.1

Bharat Electronics

Buy

1,222

1,414

29,338

8,137

9,169

16.8

17.2

58.7

62.5

20.8

19.6

3.2

2.9

44.6

46.3

2.6

2.3

www.angelbroking.com

Stock Watch

August 23, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Capital Goods

Voltas

Accumulate

373

407

12,345

6,511

7,514

7.9

8.7

12.9

16.3

28.9

22.9

5.2

4.6

16.7

18.5

1.6

1.4

BGR Energy

Neutral

115

828

16,567

33,848

6.0

5.6

7.8

5.9

14.7

19.5

0.8

4.7

4.2

0.2

0.1

BHEL

Neutral

144

35,135

28,797

34,742

2.8

2.3

6.9

62.4

20.8

1.1

1.0

1.3

4.8

0.8

0.6

Blue Star

Accumulate

491

527

4,681

4,351

5,024

6.4

7.1

17.2

20.6

28.6

23.8

18.6

15.5

23.1

24.1

1.1

1.0

Crompton Greaves

Neutral

5,462

5,777

6,120

5.9

7.0

3.3

4.5

26.4

19.4

1.2

1.1

4.4

5.9

0.9

0.8

Greaves Cotton

Neutral

137

3,333

1,755

1,881

16.8

16.9

7.8

8.5

17.5

16.1

3.5

3.3

20.6

20.9

1.6

1.5

Inox Wind

Buy

194

286

4,301

5,605

6,267

15.7

16.4

24.8

30.0

7.8

6.5

2.2

1.6

25.9

24.4

0.8

0.7

KEC International

Neutral

137

3,512

9,294

10,186

7.9

8.1

9.9

11.9

13.8

11.5

2.0

1.8

15.6

16.3

0.6

Thermax

Neutral

840

10,007

5,421

5,940

7.3

25.7

30.2

32.7

27.8

4.0

3.6

12.2

13.1

1.8

1.6

VATech Wabag

Buy

571

681

3,113

3,136

3,845

8.9

9.1

26.0

35.9

22.0

15.9

2.8

2.3

13.4

15.9

0.9

0.7

Cement

ACC

Neutral

1,659

31,157

11,225

13,172

13.2

16.9

44.5

75.5

37.3

22.0

3.5

3.3

11.2

14.2

2.8

2.4

Ambuja Cements

Neutral

271

53,722

9,350

10,979

18.2

22.5

5.8

9.5

46.7

28.5

3.9

3.5

10.2

12.5

4.5

3.9

India Cements

Neutral

129

3,973

4,364

4,997

18.5

19.2

7.9

11.3

16.4

11.5

1.2

1.1

8.0

8.5

1.6

1.4

JK Cement

Neutral

793

5,542

4,398

5,173

15.5

17.5

31.2

55.5

25.4

14.3

3.1

2.6

12.0

15.5

1.8

1.5

J K Lakshmi Cement

Neutral

432

5,085

2,913

3,412

14.5

19.5

7.5

22.5

57.6

19.2

3.5

3.0

12.5

18.0

2.4

2.0

Orient Cement

Neutral

170

3,492

2,114

2,558

18.5

20.5

8.1

11.3

21.0

15.1

3.1

2.6

9.0

14.0

2.2

1.8

UltraTech Cement

Neutral

3,866

106,092

25,768

30,385

21.0

23.5

111.0

160.0

34.8

24.2

4.4

3.9

13.5

15.8

4.2

3.5

Construction

ITNL

Buy

2,232

8,946

10,017

31.0

31.6

8.1

9.1

8.4

7.5

0.3

4.2

5.0

3.6

3.3

KNR Constructions

Neutral

698

1,964

1,210

1,595

15.4

16.0

33.9

52.1

20.6

13.4

3.2

2.7

13.6

18.0

1.7

1.2

Larsen & Toubro

Accumulate

1,492

1,700

139,065

67,665

77,249

10.7

11.5

57.3

71.2

26.0

21.0

2.4

2.2

12.6

14.3

2.2

1.9

Gujarat Pipavav Port

Neutral

173

8,344

705

788

52.2

51.7

5.0

5.6

34.5

30.8

3.4

3.1

11.2

11.6

9.9

MBL Infrastructures

Buy

117

285

485

2,797

3,405

14.7

15.4

21.0

34.8

5.6

3.4

0.6

0.5

11.0

16.2

0.8

Nagarjuna Const.

Neutral

4,784

8,842

9,775

9.1

8.8

5.3

6.4

16.2

13.5

1.3

1.2

8.2

9.1

0.7

0.6

PNC Infratech

Buy

118

647

3,019

2,350

2,904

13.4

13.7

48.0

42.0

2.5

2.8

0.5

0.4

16.8

13.2

1.4

1.1

Simplex Infra

Neutral

295

1,460

6,829

7,954

10.5

31.4

37.4

9.4

7.9

1.0

0.9

9.9

13.4

0.6

0.5

Power Mech Projects

Neutral

489

720

1,801

2,219

12.7

14.6

72.1

113.9

6.8

4.3

1.3

1.1

16.8

11.9

0.4

0.3

Sadbhav Engineering

Neutral

287

4,922

3,598

4,140

10.3

10.6

9.0

11.9

31.9

24.1

3.3

2.9

9.9

11.9

1.7

1.4

NBCC

Neutral

243

14,571

7,428

9,549

7.9

8.6

8.2

11.0

29.6

22.1

1.5

1.2

28.2

28.7

1.7

1.2

MEP Infra

Neutral

693

1,877

1,943

30.6

29.8

3.0

4.2

14.2

10.1

6.9

4.6

0.6

1.7

1.6

www.angelbroking.com

Stock Watch

August 23, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Construction

SIPL

Neutral

3,381

1,036

1,252

65.5

66.2

(8.4)

(5.6)

3.6

4.1

(22.8)

(15.9)

11.5

9.6

Engineers India

Neutral

233

7,835

1,725

1,935

16.0

19.1

11.4

13.9

20.4

16.7

2.8

2.7

13.4

15.3

3.4

3.0

Financials

Axis Bank

Neutral

580

138,468

58,081

66,459

3.5

32.4

44.6

17.9

13.0

2.4

2.1

13.6

16.5

Bank of Baroda

Neutral

160

36,867

19,980

23,178

1.8

11.5

17.3

13.9

9.3

1.6

1.3

8.3

10.1

Canara Bank

Neutral

268

14,525

15,225

16,836

1.8

14.5

28.0

18.5

9.6

1.3

1.0

5.8

8.5

Dewan Housing Finance Neutral

265

7,734

2,225

2,688

2.9

29.7

34.6

8.9

7.7

1.4

1.2

16.1

16.8

Equitas Holdings

Buy

185

235

6,206

939

1,281

11.7

11.5

5.8

8.2

31.9

22.6

2.8

2.5

10.9

11.5

Federal Bank

Neutral

11,426

9,353

10,623

2.9

4.4

5.8

15.1

11.5

1.5

1.3

9.5

11.0

HDFC

Neutral

1,378

217,817

11,475

13,450

3.4

45.3

52.5

30.4

26.2

5.9

5.2

20.2

20.5

HDFC Bank

Accumulate

1,249

1,350

316,176

46,097

55,433

4.5

58.4

68.0

21.4

18.4

3.8

3.1

18.8

18.6

ICICI Bank

Neutral

252

146,674

39,029

45,903

3.3

16.7

16.3

15.1

15.5

1.9

1.7

10.1

12.4

LIC Housing Finance

Neutral

550

27,777

3,712

4,293

2.6

2.5

39.0

46.0

14.1

12.0

2.7

2.3

19.9

20.1

Punjab Natl.Bank

Neutral

128

25,056

23,532

23,595

2.3

2.4

6.8

12.6

18.8

10.1

2.9

2.1

3.3

6.5

South Ind.Bank

Neutral

3,031

6,435

7,578

2.5

2.7

3.1

8.3

7.2

1.1

0.9

10.1

11.2

St Bk of India

Neutral

255

197,912

88,650

98,335

2.6

13.5

18.8

18.9

13.6

1.8

1.6

7.0

8.5

Union Bank

Neutral

134

9,195

13,450

14,925

2.3

25.5

34.5

5.3

3.9

0.8

0.7

7.5

10.2

Yes Bank

Neutral

1,343

56,553

8,978

11,281

3.3

3.4

74.0

90.0

18.2

14.9

3.4

2.9

17.0

17.2

FMCG

Asian Paints

Neutral

1,113

106,802

17,128

18,978

16.8

16.4

19.1

20.7

58.3

53.8

20.3

19.1

34.8

35.5

6.1

5.5

Britannia

Neutral

3,367

40,392

9,795

11,040

14.6

14.9

80.3

94.0

41.9

35.8

17.2

13.3

41.2

3.9

3.4

Colgate

Neutral

949

25,805

4,605

5,149

23.4

23.8

26.9

39.9

35.3

22.1

17.3

64.8

66.8

5.6

5.0

Dabur India

Neutral

296

52,018

8,315

9,405

19.8

20.7

8.1

9.2

36.5

32.1

10.2

8.4

31.6

31.0

6.0

5.3

GlaxoSmith Con*

Neutral

6,309

26,533

4,350

4,823

21.2

21.4

179.2

196.5

35.2

32.1

9.4

7.9

27.1

26.8

5.5

4.9

Godrej Consumer

Neutral

1,532

52,165

10,235

11,428

18.4

18.6

41.1

44.2

37.3

34.7

8.3

7.0

24.9

24.8

5.2

4.6

HUL

Neutral

930

201,199

35,252

38,495

17.6

17.4

20.4

21.9

45.5

42.5

37.4

32.8

82.2

77.3

5.4

4.9

ITC

Accumulate

254

283

306,659

40,059

44,439

39.0

39.2

9.1

10.1

27.9

25.2

7.6

6.7

27.2

26.5

7.1

6.4

Marico

Neutral

294

37,950

6,430

7,349

18.8

19.5

6.4

7.7

46.0

38.2

13.9

11.7

33.2

32.5

5.8

5.1

Nestle*

Neutral

6,797

65,530

10,073

11,807

20.7

21.5

124.8

154.2

54.5

44.1

22.4

20.1

34.8

36.7

6.2

5.3

Tata Global

Neutral

138

8,735

8,675

9,088

9.8

7.4

8.2

18.7

16.9

2.1

2.0

7.9

8.1

0.9

Procter & Gamble

Neutral

6,855

22,252

2,939

3,342

23.2

23.0

146.2

163.7

46.9

41.9

105.0

100.7

25.3

23.5

7.3

6.4

Hygiene

www.angelbroking.com

Stock Watch

August 23, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

HCL Tech^

Buy

772

1,000

108,946

49,242

57,168

20.5

55.7

64.1

13.9

12.1

2.8

2.2

20.3

17.9

2.1

1.7

Infosys

Buy

1,015

1,370

233,232

69,934

79,025

27.5

64.8

72.0

15.7

14.1

3.5

3.1

22.0

22.3

2.8

2.4

TCS

Accumulate

2,551

3,004

502,745

121,684

136,286

27.3

135.0

150.1

18.9

17.0

6.3

5.8

33.2

33.9

4.0

3.6

Tech Mahindra

Buy

466

700

45,283

30,347

33,685

17.0

37.5

41.3

12.4

11.3

2.7

2.3

21.8

20.7

1.2

1.1

Wipro

Buy

515

680

127,316

51,631

55,822

21.7

17.9

35.9

36.9

14.4

14.0

3.0

2.8

19.0

18.1

2.2

2.0

Media

D B Corp

Neutral

406

7,452

2,297

2,590

27.4

28.2

21.0

23.4

19.3

17.3

4.5

3.9

23.7

23.1

3.0

2.6

HT Media

Neutral

1,812

2,693

2,991

12.6

12.9

7.9

9.0

9.9

8.7

0.8

7.8

8.3

0.3

0.1

Jagran Prakashan

Accumulate

184

205

6,004

2,355

2,635

28.0

9.9

10.8

18.6

17.0

3.7

3.2

21.7

2.6

2.3

Sun TV Network

Neutral

459

18,083

2,850

3,265

70.1

71.0

26.2

30.4

17.5

15.1

4.5

4.0

24.3

25.6

6.3

5.4

Hindustan Media

Neutral

267

1,961

1,016

1,138

24.3

25.2

27.3

30.1

9.8

8.9

1.9

1.7

16.2

15.8

1.3

1.1

Ventures

TV Today Network

Buy

298

363

1,776

637

743

27.5

18.4

21.4

16.2

13.9

2.8

2.4

17.4

17.2

2.4

2.0

Metals & Mining

Coal India

Neutral

335

211,693

84,638

94,297

21.4

22.3

24.5

27.1

13.7

12.4

5.7

5.4

42.6

46.0

2.0

1.8

Hind. Zinc

Neutral

230

96,992

14,252

18,465

55.9

48.3

15.8

21.5

14.5

10.7

2.4

2.1

17.0

20.7

6.8

5.2

Hindalco

Neutral

156

32,214

107,899

112,095

7.4

8.2

9.2

13.0

17.0

12.0

0.8

4.8

6.6

0.8

JSW Steel

Neutral

1,768

42,744

53,201

58,779

16.1

16.2

130.6

153.7

13.5

11.5

1.8

1.6

14.0

14.4

1.6

1.4

NMDC

Neutral

109

43,354

6,643

7,284

44.4

47.7

7.1

7.7

15.4

14.2

1.3

8.8

9.2

4.1

3.7

SAIL

Neutral

20,733

47,528

53,738

(0.7)

2.1

(1.9)

2.6

19.3

0.6

0.5

(1.6)

3.9

1.3

1.2

Vedanta

Neutral

177

52,357

71,744

81,944

19.2

21.7

13.4

20.1

13.2

8.8

1.1

1.0

8.4

11.3

1.1

0.8

Tata Steel

Neutral

387

37,630

121,374

121,856

7.2

8.4

18.6

34.3

20.8

11.3

1.3

1.2

6.1

10.1

0.9

Oil & Gas

Cairn India

Neutral

206

38,669

9,127

10,632

4.3

20.6

8.8

11.7

23.4

17.6

0.8

0.7

3.3

4.2

5.6

4.6

GAIL

Neutral

364

46,179

56,220

65,198

9.3

10.1

27.1

33.3

13.4

10.9

1.2

1.1

9.3

10.7

1.0

0.9

ONGC

Neutral

239

204,776

137,222

152,563

15.0

21.8

19.5

24.1

12.3

9.9

1.1

1.0

8.5

10.1

1.8

1.6

Petronet LNG

Neutral

332

24,930

Indian Oil Corp

Neutral

560

135,917

373,359

428,656

5.9

5.5

54.0

59.3

10.4

9.4

1.6

1.4

16.0

15.6

0.5

0.4

Reliance Industries

Neutral

1,014

328,752

301,963

358,039

12.1

12.6

87.7

101.7

11.6

10.0

1.2

1.1

10.7

11.3

1.6

1.3

Pharmaceuticals

Alembic Pharma

Neutral

643

12,112

3,483

4,083

20.2

21.4

24.3

30.4

26.4

21.1

6.0

4.8

25.5

25.3

3.4

2.8

Aurobindo Pharma

Buy

750

877

43,894

15,720

18,078

23.7

41.4

47.3

18.1

15.9

4.7

3.7

29.6

26.1

3.0

2.6

Aventis*

Neutral

4,330

9,972

2,357

2,692

17.3

153.5

169.2

28.2

25.6

4.8

3.9

25.8

28.4

3.9

3.2

Cadila Healthcare

Accumulate

369

400

37,797

11,126

13,148

22.0

17.1

20.0

21.6

18.5

5.5

4.4

28.8

26.6

3.4

2.8

www.angelbroking.com

Stock Watch

August 23, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Pharmaceuticals

Cipla

Reduce

557

490

44,795

15,378

18,089

17.4

18.4

21.6

27.2

25.8

20.5

3.3

2.9

13.7

15.2

3.1

2.6

Dr Reddy's

Neutral

3,014

51,396

16,043

18,119

23.1

24.7

126.0

157.8

23.9

19.1

3.5

3.1

15.7

17.1

3.2

2.8

Dishman Pharma

Sell

178

2,868

1,718

1,890

22.7

22.8

9.5

11.3

18.7

15.7

1.8

1.6

10.1

10.9

2.1

1.8

GSK Pharma*

Neutral

3,073

26,031

3,528

3,811

16.6

18.8

51.8

59.4

59.3

51.7

15.9

15.8

26.3

30.6

7.3

6.8

Indoco Remedies

Sell

300

225

2,762

1,112

1,289

18.2

13.2

15.6

22.7

19.2

4.0

3.4

19.2

2.6

2.3

Ipca labs

Buy

511

613

6,445

3,303

3,799

15.3

17.3

19.7

29.5

25.9

2.6

2.4

9.1

9.4

2.1

1.8

Lupin

Accumulate

1,545

1,809

69,664

15,912

18,644

26.4

26.7

58.1

69.3

26.6

22.3

5.2

4.2

21.4

20.9

4.6

3.8

Sun Pharma

Buy

770

944

185,303

31,129

35,258

30.0

30.9

28.0

32.8

27.5

23.5

4.2

3.5

18.7

18.9

5.7

4.8

Power

Tata Power

Neutral

20,839

36,916

39,557

17.4

27.1

5.1

6.3

15.1

12.2

1.3

1.2

9.0

10.3

1.6

1.4

NTPC

Neutral

164

134,855

86,605

95,545

17.5

20.8

11.8

13.4

13.9

12.2

1.4

1.3

10.5

11.1

2.9

Power Grid

Neutral

181

94,849

25,763

29,762

74.3

73.1

14.8

17.3

12.3

10.5

1.9

1.7

16.9

17.5

8.0

7.6

Real Estate

MLIFE

Buy

432

554

1,774

925

1,139

18.4

22.3

18.3

33.8

23.6

12.8

1.1

4.9

8.5

2.6

2.1

Telecom

Bharti Airtel

Neutral

350

139,989

105,086

114,808

34.5

34.7

12.2

16.4

28.7

21.4

1.9

1.8

6.8

8.4

2.3

2.0

Idea Cellular

Neutral

34,010

40,133

43,731

37.2

37.1

6.4

6.5

14.8

14.5

1.2

1.1

8.2

7.6

1.9

1.6

zOthers

Abbott India

Neutral

4,644

9,869

3,153

3,583

14.1

14.4

152.2

182.7

30.5

25.4

149.8

127.9

25.6

26.1

2.9

2.5

Bajaj Electricals

Accumulate

262

277

2,642

5,099

5,805

5.7

5.9

11.4

14.6

23.0

17.9

3.1

2.7

13.4

15.1

0.5

0.4

Finolex Cables

Neutral

434

6,636

2,883

3,115

12.0

12.1

14.2

18.6

30.6

23.3

16.3

14.2

15.8

14.6

2.0

1.8

Goodyear India*

Buy

556

631

1,281

1,598

1,704

10.4

10.2

49.4

52.6

11.3

10.6

51.9

45.5

18.2

17.0

0.5

62.3

Hitachi

Neutral

1,479

4,022

2,081

2,433

8.8

8.9

33.4

39.9

44.3

37.1

35.7

29.8

22.1

21.4

1.8

1.5

Jyothy Laboratories

Neutral

286

5,172

1,440

2,052

11.5

13.0

8.5

10.0

33.6

28.6

8.1

7.5

18.6

19.3

3.9

2.7

MRF

Buy

35,489

45,575

15,051

Page Industries

Neutral

14,283

15,931

2,450

3,124

20.1

17.6

299.0

310.0

47.8

46.1

318.1

242.8

47.1

87.5

6.5

5.1

Relaxo Footwears

Neutral

467

5,606

2,085

2,469

9.2

8.2

7.6

8.0

61.8

58.8

24.0

20.4

17.9

18.8

2.8

2.4

Siyaram Silk Mills

Buy

1,195

1,347

1,120

1,799

2,040

11.6

11.7

104.9

122.4

11.4

9.8

1.9

1.6

16.4

0.8

0.7

Styrolution ABS India*

Neutral

575

1,011

1,440

1,537

9.2

9.0

40.6

42.6

14.2

13.5

36.2

32.9

12.3

11.6

0.6

TVS Srichakra

Buy

2,503

2,932

1,916

2,304

2,614

13.7

13.8

231.1

266.6

10.8

9.4

281.2

221.4

33.9

29.3

0.8

0.7

HSIL

Neutral

355

2,568

2,384

2,515

15.8

16.3

15.3

19.4

23.2

18.3

23.1

19.9

7.8

9.3

1.2

1.1

Kirloskar Engines India

Neutral

285

4,119

2,554

2,800

9.9

10.0

10.5

12.1

27.1

23.5

11.4

10.7

11.7

1.3

1.1

Ltd

M M Forgings

Neutral

428

517

546

608

20.4

20.7

41.3

48.7

10.4

8.8

58.7

51.9

16.6

17.0

0.8

0.7

www.angelbroking.com

Stock Watch

August 23, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

zOthers

Banco Products (India) Neutral

213

1,521

1,353

1,471

12.3

12.4

14.5

16.3

14.7

13.1

20.3

18.3

14.5

14.6

1.1

117.4

Competent Automobiles Neutral

171

105

1,137

1,256

3.1

2.7

28.0

23.6

6.1

7.2

32.8

29.7

14.3

11.5

0.1

Nilkamal

Neutral

1,228

1,833

1,995

2,165

10.7

10.4

69.8

80.6

17.6

15.2

70.2

61.0

16.6

16.5

0.9

0.8

Visaka Industries

Neutral

161

256

1,051

1,138

10.3

10.4

21.0

23.1

7.7

7.0

20.7

19.4

9.0

9.2

0.5

Transport Corporation of

Neutral

358

2,740

2,671

2,911

8.5

8.8

13.9

15.7

25.8

22.9

3.5

3.2

13.7

13.8

1.1

1.0

India

Elecon Engineering

Accumulate

614

1,482

1,660

13.7

14.5

3.9

5.8

14.5

9.7

3.4

3.1

7.8

10.9

0.7

Surya Roshni

Buy

175

201

766

3,342

3,625

7.8

7.5

17.3

19.8

10.1

8.8

19.2

15.4

10.5

10.8

0.5

0.4

MT Educare

Neutral

140

559

366

417

17.7

18.2

9.4

10.8

15.0

13.0

3.3

2.9

22.2

22.3

1.3

1.1

Radico Khaitan

Buy

125

1,310

1,659

1,802

13.0

13.2

6.3

7.4

15.5

13.4

1.3

1.2

8.6

9.3

1.3

1.1

Garware Wall Ropes

Neutral

507

1,109

873

938

12.9

13.1

30.9

34.9

16.4

14.5

2.6

2.2

15.7

15.2

1.2

1.1

Wonderla Holidays

Neutral

415

2,342

287

355

38.0

40.0

11.3

14.2

36.7

29.2

5.3

4.6

21.4

23.9

7.6

6.1

Linc Pen & Plastics

Accumulate

260

283

384

382

420

9.3

9.5

13.5

15.7

19.3

16.6

3.3

2.9

17.1

17.3

1.1

1.0

The Byke Hospitality

Neutral

160

642

287

384

20.5

7.6

10.7

21.1

15.0

4.4

3.6

20.7

23.5

2.3

1.7

Interglobe Aviation

Neutral

902

32,501

21,122

26,005

14.5

27.6

110.7

132.1

8.2

6.8

48.8

34.8

168.5

201.1

1.5

1.2

Coffee Day Enterprises

Neutral

237

4,883

2,964

3,260

20.5

21.2

4.7

8.0

29.6

2.7

2.5

5.5

8.5

2.1

1.9

Ltd

Navneet Education

Neutral

104

2,471

1,062

1,147

24.0

6.1

6.6

17.0

15.7

3.5

3.1

20.6

19.8

2.3

2.2

Navkar Corporation

Buy

201

265

2,864

408

612

42.9

42.3

6.8

11.5

29.7

17.5

2.1

1.8

6.9

10.5

7.7

5.2

UFO Moviez

Neutral

467

1,289

619

685

33.2

33.4

30.0

34.9

15.6

13.4

2.2

1.9

13.8

13.9

2.0

1.6

VRL Logistics

Neutral

295

2,691

1,902

2,119

16.7

16.6

14.6

16.8

20.3

17.5

4.4

3.9

21.9

22.2

1.6

1.4

Team Lease Serv.

Neutral

1,059

1,810

3,229

4,001

1.5

1.8

22.8

32.8

46.5

32.2

5.0

4.3

10.7

13.4

0.5

0.4

S H Kelkar & Co.

Neutral

298

4,307

1,036

1,160

15.1

15.0

6.1

7.2

48.8

41.5

5.2

4.8

10.7

11.5

3.9

3.5

Quick Heal

Neutral

241

1,690

408

495

27.3

27.0

7.7

8.8

31.2

27.5

2.9

9.3

10.6

3.3

2.7

Narayana Hrudaya

Neutral

314

6,422

1,873

2,166

11.5

11.7

2.6

4.0

118.8

79.3

7.3

6.6

6.1

8.3

3.4

2.9

Manpasand Bever.

Neutral

731

3,661

836

1,087

19.6

19.4

16.9

23.8

43.3

30.7

5.2

4.5

12.0

14.8

4.1

3.0

Parag Milk Foods

Neutral

316

2,660

1,919

2,231

9.3

9.6

9.5

12.9

33.5

24.5

5.2

4.3

15.5

17.5

1.5

1.3

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 22, 2016

www.angelbroking.com

Market Outlook

August 23, 2016

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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