Market Outlook
March 27, 2018
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open positive tracking global indices and SGX Nifty.
BSE Sensex
1.4
470
33,066
U.S. stocks gave back some ground in morning trading before moving back to the
Nifty
1.3
133
10,131
upside in the afternoon. The rally on Wall Street came following the sell-off seen last
Mid Cap
1.2
187
15,881
week. The Dow Jones closes up to 2.8% to close at 24,203. The NASDAQ soared
Small Cap
0.7
122
16,923
by 3.3% to close at 7,221.
Bankex
2.3
609
27,121
U.K. stocks were modestly higher as concerns eased over the U.S. action of selective
imposition of import tariffs. The FTSE 100 was down by 0.5% to end at 6,889.
Global Indices
Chg (%)
(Pts)
(Close)
On domestic front, Indian shares ended on a strong note as concerns eased over
Dow Jones
2.8
669
24,203
the U.S. action of selective imposition of import tariffs. The BSE Sensex ended up by
Nasdaq
3.3
228
7,221
1.4% at 33,066.
FTSE
(0.5)
(33)
6,889
News Analysis
Nikkei
1.7
343
21,110
Dilip Buildcon bags Rs 41.14-billion projects in Karnataka, Maharashtra
Hang Seng
0.9
275
30,824
Shanghai Com
0.7
22
3,156
Detailed analysis on Pg2
Investor’s Ready Reckoner
Advances / Declines
BSE
NSE
Key Domestic & Global Indicators
Advances
1,204
852
Stock Watch: Latest investment recommendations on 150+ stocks
Declines
1,593
997
Refer Pg5 onwards
Unchanged
151
54
Top Picks
CMP
Target
Upside
Volumes (` Cr)
Company
Sector
Rating
(`)
(`)
(%)
BSE
7,010
Blue Star
Capital Goods Accumulate
767
867
13.1
Dewan Housing Finance
Financials
Buy
503
720
43.3
NSE
30,974
Century Plyboards
Forest Product
Buy
321
400
24.8
Navkar Corporation
Others
Buy
150
265
76.4
Net Inflows (` Cr)
Net
Mtd
Ytd
KEI Industries
Capital Goods
Buy
367
436
18.7
FII
2,631
12,789
13,282
More Top Picks on Pg4
*MFs
431
3,689
28,893
Key Upcoming Events
Previous
Consensus
Date
Region
Event Description
Top Gainers
Price (`)
Chg (%)
Reading
Expectations
Mar 27
Euro Zone Euro-Zone Consumer Confidence
0.10
0.10
HATHWAY
38
11.7
Mar 27
US
Consumer Confidence
130.80
131.00
CANBK
270
10.2
Mar 28
US
Initial Jobless claims
229.00
230.00
NETWORK18
60
10.2
Mar 29
US
GDP Qoq (Annualised)
2.50
2.70
DEN
96
10.2
Mar 29
Germany Unemployment change (000's)
(15.00)
(22.00)
MMTC
59
8.2
More Events on Pg7
Top Losers
Price (`)
Chg (%)
HCC
24
-6.4
IBVENTUREPP
87
-6.0
BAJAJHIND
9
-5.2
VAKRANGEE
245
-5.0
WIPRO
274
-4.0
As on March 26, 2018
Market Outlook
March 27, 2018
News Analysis
Dilip Buildcon bags Rs
41.14-billion projects in Karnataka,
Maharashtra
Highway developer Dilip Buildcon (DBL) has bagged projects worth total Rs
4,114cr from state-run NHAI in Karnataka and Maharashtra. The projects are to
be built on 'Hybrid Annuity Mode'. "DBL has been declared L-l bidder for new Four
Hybrid Annuity Projects valued at Rs 41.145 billion (Rs 4,114.5cr) by the National
Highways Authority of India in the states of Karnataka and Maharashtra". In
Karnataka, the work is to four-lane Byrapura to Challakere section of NH-150 A.
Economic and Political News
IRFC's Rs 50-bn bond issuance to LIC gets government guarantee
RBI to keep policy rates on hold, maintain neutral stance
Government plans to borrow Rs 2.88 trillion in H1FY19; to issue inflation
indexed bond
Oil import bill to jump 25% to Rs 5.65 trillion in FY18 as crude prices surge
Corporate News
Dilip Buildcon bags Rs 41.14-billion projects in Karnataka, Maharashtra
Zydus Cadila gets USFDA nod for cardiac drug Metoprolol Succinate
Lupin launches generic Lodosyn tablets in US for Parkinson's disease
Tata Power sells Tata Communications' shares to parent for Rs 21.5bn
Market Outlook
March 27, 2018
Top Picks
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
Strong growth in domestic business due to its
leadership in acute therapeutic segment. Alkem
Alkem Laboratories
24,832
2,077
2,441
17.5
expects to launch more products in USA, which
bodes for its international business.
Favorable outlook for the AC industry to augur well
for Cooling products business which is out pacing
Blue Star
7,359
767
867
13.1
the 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
15,761
503
720
43.3
presence in tier-II & III cities where the growth
opportunity is immense.
Well capitalized with CAR of 18.1% which gives
sufficient room to grow asset base. Faster resolution
ICICI Bank
1,80,865
281
416
47.8
of NPA would reduce provision cost, which would
help to report better ROE.
High order book execution in EPC segment, rising
KEI Industries
2,879
367
436
18.7
B2C sales and higher exports to boost the revenues
and profitability
Expected to benefit from the lower capex
Music Broadcast Limited
2,168
380
475
25.0
requirement and
15 year long radio broadcast
licensing.
Massive capacity expansion along with rail
Navkar Corporation
2,261
150
265
76.4
advantage at ICD as well CFS augur well for the
company
Strong brands and distribution network would boost
Siyaram Silk Mills
2,884
615
851
38.3
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
TV Today Network
3,048
511
603
18.0
the 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
Maruti
2,65,001
8,773
10,619
21.0
Gujarat 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
1,938
360
655
82.0
year; change in borrowing mix will help in NIM
improvement
We expect CPIL to report net Revenue/PAT CAGR of
~17%/16% over FY2017-20E mainly due to healthy
Century Plyboards
7,121
321
400
24.8
growth in plywood & lamination business, forayed
into MDF & Particle boards on back of strong brand
& distribution network.
We expect sales/PAT to grow at 13.5%/20% over
LT Foods
2,687
84
128
52.4
next two years on the back of strong distribution
network & addition of new products in portfolio.
Third largest brand play in luggage segment
Increased product offerings and improving
Safari Industries
1,144
514
650
26.4
distribution network is leading to strong growth in
business. Likely to post robust growth for next 3-4
years
We expect HSIL to report PAT CAGR of ~15% over
FY2017-20E owing to better improvement in
HSIL Ltd
2,736
378
510
34.8
operating margin due price hike in container glass
segment, turnaround in consumer business.
We expect financialisation of savings and increasing
Aditya Birla Capital
32,364
147
218
32.6
penetration in Insurance & Mutual fund would
ensure steady growth.
Source: Company, Angel Research
Market Outlook
March 27, 2018
Fundamental Call
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
CCL is likely to maintain the strong growth trajectory
CCL Products
3,718
280
360
28.8
over FY18-20 backed by capacity expansion and new
geographical foray
We forecast Nilkamal to report top-line CAGR of ~9%
to `2,635cr over FY17-20E on the back of healthy
Nilkamal
2,272
1,523
2,178
43.0
demand growth in plastic division. On the bottom-line
front, we estimate ~10% CAGR to `162cr owing to
improvement in volumes.
The prism has diversified exposure in the different
segment such as Cement, Tile & ready mix concrete.
Prism Cement
5,708
113
160
41.1
Thus we believe, PCL is in the right place to capture
ongoing government spending on affordable housing
and infrastructure projects.
Elantas Beck India is the Indian market leader in liquid
insulation segment used in electrical equipments like
Elantas Beck India Ltd
1,646
2,076
2,500
20.4
motors, transformers etc. It derives demand from
several industries which are expected to register 10%+
CAGR in demand in the coming years.
Greenply Industries Ltd (GIL) manufactures plywood &
allied products and medium density fibreboards
(MDF). GIL to report net revenue CAGR of ~14% to
Greenply Industries
3,915
319
395
23.7
~`2,478cr over FY2017-20E mainly due to healthy
growth in plywood & lamination business on the back
of strong brand and distribution network
Source: Company, Angel Research
