Market Outlook

September 27, 2017

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian markets are likely to open in positive tracking global indices and SGX Nifty.

BSE Sensex

(0.1)

(27)

31,600

U.S. stock-market indexes relinquished earlier gains to close little changed on

Nifty

(0.0)

(1)

9,872

Tuesday. Investors appeared to shrug off comments from Federal Reserve

Mid Cap

0.4

15,500

Chairwoman Janet Yellen, who cautioned against moving too slowly on interest

rates. Yellen said there is a risk that the labor market could become overheated,

Small Cap

1.1

173

16,136

causing an inflation problem down the road. The Dow dipped 0.1 % to 22,284,

Bankex

0.2

27,233

NASDAQ rose 0.2 % to 6,380 and the S&P 500 inched up 0.1% to 2,497.

The U.K. stocks on Tuesday closed lower for a second straight session, with analysts

Global Indices

Chg (%)

(Pts)

(Close)

saying an escalating war of words between the U.S. and North Korea helped push

Dow Jones

(0.1)

(12)

22,284

investors out of risky assets. The FTSE 100 index UKX, fell 0.2% to end at 7,286,

Nasdaq

0.2

6,380

building on a 0.1% loss from Monday.

FTSE

(0.2)

(16)

7,286

Indian shares fell for a sixth consecutive session on Tuesday, although markets

Nikkei

(0.4)

(73)

20,257

ended well off their day's lows, tracking a positive trend in Europe. The 30-share BSE

Hang Seng

0.5

133

27,646

Sensex finished at 31,600, down by 0.08% from its previous close, while the 50-

Shanghai Com

0.0

3,345

share Nifty index ended down 0.01 % at 9,872.

Advances / Declines

BSE

NSE

News Analysis

 Dabur India partners with Amazon to strengthen global sales

Advances

1,562

1,077

Declines

1,988

602

Detailed analysis is on Pg2

Unchanged

165

Investor’s Ready Reckoner

Key Domestic & Global Indicators

Volumes (` Cr)

Stock Watch: Latest investment recommendations on 150+ stocks

BSE#

4,002

Refer Pg7 onwards

NSE

26,493

Top Picks

CMP

Target

Upside

#Net Inflows (` Cr)

Net

Mtd

Ytd

Company

Sector

Rating

(`)

(%)

FII

(56(29)

(2(4,984)

442,305

Blue Star

Capital Goods Accumulate

749

850

13.5

MFs

1,116

4,9,093

177,980

Dewan Housing FinanceFinancials

Accumulate

556

610

9.6

Asian Granito

Others

Buy

476

570

19.7

Navkar Corporation

Others

Buy

186

265

42.5

Top Gainers

Price (`)

Chg (%)

KEI Industries

Capital Goods

Buy

319

371

16.1

Edelweiss

278

9.0

More Top Picks on Pg5

Godfryphlp

1,042

7.9

Key Upcoming Events

Dhfl

556

6.0

Consensus

Date

Region

Event Description

Prestige

266

6.0

Reading

Expectations

Sep 28, 2017 Euro Zone Euro-Zone Consumer Confidence

(1.20)

Oil

349

5.4

Sep 28, 2017 US

Initial Jobless claims

259.00

270.00

Sep 28, 2017 US

GDP Qoq (Annualised)

3.00

Top Losers

Price (`)

Chg (%)

Sep 29, 2017 China

PMI Manufacturing

51.70

51.50

Centralbk

273

(6.3)

Sep 29, 2017 Germany Unemployment change (000's)

(5.00)

More Events on Pg7

Jpassociat

(4.1)

Recltd

161

(3.7)

Sci

(3.6)

Infratel

376

(3.5)

#as on 26^th Sep, 2017

www.angelbroking.com

Market Outlook

September 27, 2017

News Analysis

Dabur India partners with Amazon to strengthen global sales

FMCG Major Dabur India Ltd will start selling its products in the US, Canada and

Mexico on Amazon’s global marketplace this quarter, the two companies said.

The partnership will help Dabur to tap into demand from the Indian as well as

local Americans. As a part of Amazon’s global seller programme, Dabur initially

will take around 30 of its products like Vatika hair oil, Chyawanprash and

toothpaste to the US market. Depending on the response, it would launch 80 more

products in the next quarter. The company is also introducing an exclusive product

Himalaya Honey that will be sold through Amazon.com. Recently, Dabur got listed

as a seller on Amazon’s India portal to sell its products in the country.

Economic and Political News

 GST collections slow down in August to `90,669cr

 Scope for rate cut by RBI remains, less possibility of fiscal stimulus: ADB

 SEBI to allow MFs in commodity derivatives

Corporate News

 TCS’ U.K.-based subsidiary Diligenta secured a 15-year deal from Scottish

Widows

 Aurobindo Pharma received Form 483 with 2 observations from the U.S. FDA

 TVS Motor says Jupiter scooter sales crossed two million-mark in four years

www.angelbroking.com

Market Outlook

September 27, 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

22,486

1,881

2,079

10.5

more products in USA, which bodes for its international

business.

We expect the company would report strong profitability

Asian Granito

1,432

476

570

19.7

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

7,172

749

850

13.5

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

17,446

556

610

9.6

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

8,929

148

180

21.8

Increasing share of CASA will help in NIM

improvement.

High order book execution in EPC segment, rising B2C

KEI Industries

2,485

319

371

16.1

sales and higher exports to boost the revenues and

profitability

Expected to benefit from the lower capex requirement

Music Broadcast

2,218

389

434

11.7

and 15 year long radio broadcast licensing.

Massive capacity expansion along with rail advantage

Navkar Corporation

2,653

186

265

42.5

at ICD as well CFS augurs well for the company

Strong brands and distribution network would boost

Siyaram Silk Mills

2,018

2,152

2,500

16.2

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

2,225

373

435

16.6

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

2,38,207

7,886

8,658

9.8

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

2,780

516

655

26.9

year; change in borrowing mix will help in NIM

improvement..

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

September 27, 2017

Key Upcoming Events

Global economic events release calendar

Bl oomberg Data

D ate

Time

C ountry

Event Description

Unit

Period

L ast Reporte d

E stimate d

Sep 28, 2017

2:30 PM Euro Zone

Euro-Zone Consumer Confidence

Value

Sep F

(1.20)

6:00 PM US

Initial Jobless claims

Thousands

Sep 23

259.00

270.00

6:00 PM US

GDP Qoq (Annualise d)

% Change

2Q T

3.00

Sep 29, 2017

6:30 AM China

PMI Manufacturing

Value

Sep

51.70

51.50

1:25 PM Germany

Unempl oyment change (000's)

Thousands

Sep

(5.00)

Sep 30, 2017

2:00 PM UK

GDP (YoY)

% Change

2Q F

1.70

Oct 02, 2017

1:25 PM Germany

PMI Manufacturing

Value

Sep F

60.60

2:00 PM UK

PMI Manufacturing

Value

Sep

56.90

Oct 04, 2017

1:25 PM Germany

PMI Services

Value

Sep F

55.60

2:30 PM India

RBI Reverse Re po rate

Oct 4

5.75

2:30 PM India

RBI Repo rate

Oct 4

6.00

2:30 PM India

RBI Cash Reserve ratio

Oct 4

4.00

Oct 06, 2017

6:00 PM US

Change in N onfarm payrolls

Thousands

Sep

156.00

70.00

6:00 PM US

Unnemployment rate

Sep

4.40

Oct 10, 2017

India

Imports YoY%

% Change

Sep

21.00

2:00 PM UK

Industrial Production (YoY)

% Change

Aug

0.40

India

Exports YoY%

% Change

Sep

10.30

Oct 12, 2017

Producer Price Index (mom)

% Change

Sep

0.50

5:30 PM India

Industrial Production YoY

% Change

Aug

1.20

Oct 13, 2017

6:00 PM US

Consumer price index (mom)

% Change

Sep

0.40

0.50

China

Exports YoY%

% Change

Sep

5.60

Oct 16, 2017

12: 00 PM India

Monthly Wholesale Prices YoY%

% Change

Sep

3.24

7:00 AM China

Consumer Price Index (YoY)

% Change

Sep

1.80

Oct 17, 2017

2:30 PM Euro Zone

Euro-Zone CPI (YoY)

Sep F

1.50

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

September 27, 2017

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

10.0

6.0

9.1

5.1

8.8

5.0

9.0

5.0

4.4

8.0

7.9

4.2

7.6

7.5

8.0

7.3

7.2

4.0

3.5

7.0

3.2

2.8

7.0

6.1

3.0

2.4

5.7

6.0

2.0

1.2

5.0

1.0

4.0

3.0

(1.0)

(0.2)

Source: CSO, Angel Research

Source: MOSPI, Angel Research

Exhibit 3: Monthly CPI inflation trends

Exhibit 4: Manufacturing and services PMI

56.0

Mfg. PMI

Services PMI

(%)

5.0

54.0

4.3

4.2

4.5

3.9

52.0

4.0

3.6

3.7

3.4

3.2

50.0

3.5

3.0

48.0

2.4

2.2

2.5

46.0

2.0

1.5

44.0

1.0

42.0

0.5

40.0

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

Source: MOSPI, Angel Research

Exhibit 5: Exports and imports growth trends

Exhibit 6: Key policy rates

(%)

Exports yoy growth

Imports yoy growth

(%)

Repo rate

Reverse Repo rate

CRR

60.0

6.50

50.0

6.00

40.0

5.50

30.0

5.00

20.0

4.50

10.0

4.00

0.0

3.50

(10.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Market Outlook

September 27, 2017

Exhibit 4: Relative performance of indices across globe

Returns (%)

C ountry

Name of index

Closing price

1YR

Brazil

Bovespa

74,319

4.5

20.5

26.0

Russia

Micex

2,071

4.6

9.5

4.6

India

Nifty

9,872

0.1

3.1

11.3

China

Shanghai Composite

3,344

(0.5)

4.9

10.5

South Africa

Top 40

48,819

(2.6)

8.2

7.8

Mexico

Mexbol

50,359

(2.0)

2.1

4.8

Indonesia

LQ45

976

(0.9)

1.4

7.5

Malaysia

KLCI

1,766

(0.3)

(0.8)

6.8

Thailand

SET 50

1,069

6.6

7.3

13.9

USA

Dow Jones

22,284

2.3

4.1

22.3

FTSE

7,286

(1.6)

(2.0)

6.4

Japan

Nikkei

20,330

5.0

1.0

23.1

Germany

DAX

12,605

3.6

(0.3)

19.9

France

CAC

5,269

3.2

0.3

17.0

Source: Bloomberg, Angel Research, data as of 26^th Sept-17 p68in4

www.angelbroking.com

Stock Watch

September 27, 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

Neutral

214

4,155

1,873

2,099

15.0

9.5

10.5

22.5

20.4

3.4

3.1

15.8

16.0

2.1

1.9

United Phosphorus

Accumulate

780

820

39,607

18,922

21,949

18.0

18.5

36.2

45.6

21.5

17.1

4.5

3.7

22.7

23.8

2.3

1.9

Auto & Auto Ancillary

Ashok Leyland

Accumulate

114

127

33,289

23,339

27,240

10.1

10.8

4.7

6.2

24.5

18.3

4.9

4.3

20.0

23.6

1.4

1.2

Bajaj Auto

Neutral

3,036

87,863

23,936

27,955

19.5

20.1

142.7

167.3

21.3

18.1

4.6

4.1

21.8

22.8

3.3

2.7

Bharat Forge

Neutral

1,274

29,664

7,637

8,755

21.7

23.2

36.1

47.3

35.3

27.0

6.3

5.4

18.5

20.8

3.7

3.2

Eicher Motors

Neutral

30,827

83,920

19,043

22,837

19.5

19.9

835.4

1,019.0

36.9

30.3

13.8

10.6

40.9

37.8

4.3

3.5

Gabriel India

Neutral

203

2,910

1,782

2,033

9.7

10.2

7.1

8.9

28.5

22.9

5.8

4.9

21.0

22.2

1.6

1.4

Hero Motocorp

Accumulate

3,786

4,129

75,602

32,239

36,878

16.0

15.6

184.4

206.5

20.5

18.3

6.5

5.7

31.3

30.7

2.1

1.8

Jamna Auto Industries Neutral

252

2,004

1,441

1,662

14.4

14.8

13.9

17.6

18.1

14.3

4.9

4.0

30.0

31.0

1.4

1.2

Mahindra and Mahindra Neutral

1,246

77,391

46,971

53,816

13.6

14.0

67.7

79.8

18.4

15.6

2.6

2.3

15.0

15.9

1.5

1.3

Maruti

Accumulate

7,886

8,658

238,207

81,825

101,245

15.0

283.5

356.0

27.8

22.2

6.1

5.0

21.9

22.4

2.6

2.0

Minda Industries

Neutral

843

7,283

4,328

5,084

11.0

11.9

27.3

36.4

30.9

23.2

6.6

5.1

23.1

25.6

1.8

1.5

Motherson Sumi

Neutral

339

71,439

55,937

64,445

10.8

11.4

16.9

21.1

20.1

16.1

4.5

4.6

25.2

25.4

1.3

1.1

Tata Motors

Neutral

411

118,641

303,167

343,649

11.8

13.8

33.1

54.7

12.4

7.5

2.0

1.6

16.9

23.0

0.4

TVS Motor

Neutral

648

30,779

13,992

16,216

9.0

9.4

17.1

20.3

38.0

31.9

10.1

7.8

29.7

27.7

2.1

1.8

Amara Raja Batteries

Buy

725

858

12,386

6,140

7,122

14.3

15.6

29.3

39.0

24.8

18.6

4.2

3.5

17.1

19.0

2.0

1.7

Exide Industries

Neutral

206

17,480

8,689

9,854

15.1

15.2

9.7

11.0

21.3

18.7

3.8

3.3

15.7

16.1

1.7

1.5

Apollo Tyres

Neutral

248

12,624

15,739

17,326

13.3

14.6

20.4

26.7

12.2

9.3

1.5

1.3

20.4

26.7

1.0

0.9

Ceat

Neutral

1,675

6,777

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

149

3,369

8,318

9,239

16.2

16.4

21.0

27.5

7.1

5.4

1.4

1.1

19.1

20.4

0.9

0.7

Swaraj Engines

Neutral

2,065

2,565

788

889

16.4

16.5

71.6

81.0

28.8

25.5

8.3

7.7

29.6

31.0

2.9

2.5

Subros

Neutral

221

1,326

1,855

2,135

11.6

11.8

10.3

14.7

21.6

15.1

3.3

2.8

15.8

19.1

0.9

0.8

Capital Goods

BEML

Neutral

1,686

7,021

4,286

5,194

7.1

8.2

42.9

58.1

39.3

29.0

3.2

2.9

7.6

8.7

1.7

1.4

Bharat Electronics

Neutral

183

40,775

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

519

17,158

6,778

8,004

9.6

11.0

17.1

22.4

30.3

23.2

7.2

6.3

17.7

19.8

2.2

1.9

BHEL

Neutral

128

31,219

33,200

39,167

6.8

9.5

6.2

11.2

20.6

11.4

0.9

4.6

8.0

0.5

0.4

Blue Star

Accumulate

749

850

7,172

5,220

6,207

6.3

6.6

16.8

22.3

44.6

33.6

8.9

7.8

19.9

23.3

1.3

1.1

CG Power and Industrial

Neutral

4,876

6,555

7,292

7.5

0.8

7,780.0

97.3

1.2

0.1

1.2

0.8

Solutions

Greaves Cotton

Neutral

136

3,329

1,778

1,993

14.7

15.1

8.1

9.1

16.8

15.0

3.8

3.5

21.8

23.6

1.6

1.5

www.angelbroking.com

Stock Watch

September 27, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Capital Goods

KEC International

Accumulate

309

350

7,954

9,779

11,113

9.4

9.8

14.2

18.2

21.8

17.0

4.2

3.4

21.1

22.1

1.1

0.9

KEI Industries

Buy

319

371

2,485

3,001

3,391

10.0

13.0

16.1

24.6

19.8

4.5

3.7

18.2

18.7

1.0

0.9

Thermax

Neutral

875

10,426

4,125

4,747

10.3

10.8

26.7

31.5

32.8

27.8

3.7

3.4

11.2

12.0

2.3

2.0

VATech Wabag

Accumulate

609

681

3,323

3,867

4,126

9.6

10.0

34.9

39.8

17.4

15.3

2.9

2.5

17.7

17.5

0.9

0.8

Cement

ACC

Neutral

1,632

30,652

12,255

13,350

13.5

14.3

58.0

66.2

28.1

24.7

3.3

3.1

11.5

12.2

2.5

2.3

Ambuja Cements

Neutral

261

51,815

10,250

11,450

17.5

19.0

7.2

8.3

36.2

31.4

2.6

2.5

7.0

7.8

4.8

4.3

India Cements

Neutral

171

5,279

6,135

6,750

14.8

15.2

8.5

11.5

20.2

14.9

1.0

4.8

6.2

1.2

1.1

JK Cement

Neutral

956

6,686

4,150

4,775

19.2

20.0

49.0

63.5

19.5

15.1

3.1

2.7

17.0

18.5

2.0

1.7

J K Lakshmi Cement

Neutral

389

4,572

3,422

3,757

15.5

17.0

13.5

23.2

28.8

16.8

3.0

2.6

10.8

15.5

1.7

1.5

Orient Cement

Neutral

153

3,137

2,215

3,233

16.8

17.0

5.9

6.9

26.0

22.2

2.0

1.8

10.8

10.1

2.4

1.6

UltraTech Cement

Neutral

3,914

107,454

28,250

35,150

20.2

23.5

77.5

122.2

50.5

32.0

4.3

3.9

9.6

14.8

4.3

3.4

Construction

KNR Constructions

Neutral

208

2,922

1,846

2,203

14.5

12.1

13.7

17.2

15.2

0.9

0.8

17.5

16.7

1.6

1.4

Larsen & Toubro

Neutral

1,160

162,442

95,787

109,476

10.2

11.6

44.5

50.8

26.1

22.9

3.3

3.0

12.9

13.1

2.2

2.0

Gujarat Pipavav Port

Neutral

135

6,541

739

842

61.6

62.7

5.1

6.2

26.5

22.0

3.3

3.2

12.7

14.9

8.3

7.2

PNC Infratech

Accumulate

136

143

3,484

2,040

2,935

13.0

6.4

9.0

21.2

15.1

0.6

0.5

9.7

12.2

1.7

1.2

Simplex Infra

Neutral

456

2,254

6,012

6,619

11.6

11.7

21.1

31.0

21.7

14.7

1.5

1.4

6.5

8.6

0.9

0.8

Sadbhav Engineering

Neutral

293

5,027

3,823

4,426

10.7

10.8

10.3

11.8

28.5

24.8

3.4

3.0

10.1

10.5

1.6

1.4

NBCC

Neutral

212

19,116

9,099

12,706

6.4

7.3

9.6

29.2

22.2

1.3

1.0

27.5

30.5

2.0

1.4

MEP Infra

Neutral

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

3,279

2,060

2,390

46.8

47.7

(5.8)

(3.1)

3.5

4.0

(14.2)

(2.3)

6.4

6.0

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

Accumulate

510

580

122,373

32,558

35,843

3.5

3.2

27.8

41.0

18.4

12.4

2.0

1.7

11.4

14.9

Bank of Baroda

Neutral

143

32,846

22,533

26,079

2.4

12.0

20.9

11.9

6.8

0.8

0.7

6.6

11.0

Canara Bank

Neutral

328

19,561

17,925

20,235

2.0

2.1

18.5

36.5

17.7

9.0

0.7

0.6

3.4

6.2

Can Fin Homes

Neutral

2,653

7,063

586

741

3.5

107.8

141.0

24.6

18.8

5.4

4.4

24.1

25.6

Cholamandalam Inv. &

Accumulate

1,075

1,230

16,797

2,826

3,307

6.3

53.7

64.6

20.0

16.7

3.4

2.9

18.3

18.9

Fin. Co.

Dewan Housing Finance Accumulate

556

610

17,446

2,676

3,383

2.4

2.7

37.4

49.7

14.9

11.2

2.0

1.7

13.8

16.2

Equitas Holdings

Buy

157

235

5,302

1,125

1,380

9.6

9.8

1.5

6.0

104.3

26.1

2.4

2.2

2.4

8.2

Federal Bank

Accumulate

112

125

21,837

4,896

5,930

2.8

3.1

5.4

7.6

20.9

14.8

1.8

1.6

8.5

11.0

www.angelbroking.com

Stock Watch

September 27, 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

516

655

2,780

376

477

3.6

3.7

33.0

40.0

15.7

12.9

2.8

2.4

20.0

23.0

HDFC Bank

Neutral

1,791

462,418

55,236

63,253

4.5

4.4

68.9

82.4

26.0

21.7

4.5

3.8

18.7

18.5

ICICI Bank

Accumulate

283

315

181,384

42,361

51,378

3.6

3.9

18.4

25.7

15.4

11.0

1.7

1.6

11.3

15.0

Karur Vysya Bank

Buy

148

180

8,929

3,289

3,630

3.7

3.9

10.8

14.1

13.6

10.5

1.6

1.5

12.5

14.7

LIC Housing Finance

Neutral

620

31,307

4,895

6,332

3.4

3.7

50.7

66.8

12.2

9.3

2.4

2.0

21.7

23.8

Punjab Natl.Bank

Neutral

137

29,143

23,708

25,758

2.1

5.9

16.4

23.3

8.3

0.7

3.0

8.3

RBL Bank

Neutral

509

21,010

2,309

2,888

2.6

2.5

16.4

19.1

31.1

26.7

3.9

3.5

13.3

13.8

Repco Home Finance

Buy

604

825

3,781

496

597

4.4

4.2

38.5

48.7

15.7

12.4

2.8

2.3

19.6

20.6

South Ind.Bank

Neutral

5,233

3,195

3,567

3.0

3.1

3.0

3.8

9.6

7.6

1.0

0.9

10.5

11.9

St Bk of India

Neutral

258

222,621

105,827

121,056

2.4

2.5

16.1

25.6

16.0

10.1

1.3

1.1

6.6

9.9

Union Bank

Neutral

131

9,498

14,650

16,225

2.3

23.1

32.5

5.7

4.0

0.4

7.1

9.2

Yes Bank

Neutral

360

82,525

11,088

13,138

3.0

2.9

84.0

99.3

4.3

3.6

0.7

0.6

16.3

16.8

FMCG

Akzo Nobel India

Neutral

1,791

8,592

3,164

3,607

13.8

13.7

58.6

67.9

30.6

26.4

7.5

6.6

24.5

25.1

2.6

2.2

Asian Paints

Neutral

1,172

112,437

17,603

20,615

18.6

2,128.9

2,543.3

0.6

0.5

11.6

9.8

28.0

28.9

6.2

5.2

Britannia

Neutral

4,330

51,983

9,690

11,278

14.8

15.4

84.0

101.0

51.5

42.9

18.8

14.9

40.6

39.0

5.3

4.6

Colgate

Neutral

1,081

29,392

4,420

5,074

24.9

25.3

28.6

32.8

37.8

33.0

14.9

12.0

43.8

40.5

6.4

5.5

Dabur India

Neutral

308

54,272

8,346

9,344

19.6

19.9

7.8

9.0

39.5

34.2

8.0

7.2

25.2

24.8

6.1

5.4

GlaxoSmith Con*

Neutral

4,918

20,685

5,072

5,760

18.2

18.4

176.3

199.2

27.9

24.7

5.9

5.4

21.2

21.7

3.4

2.9

Godrej Consumer

Neutral

914

62,277

10,171

11,682

20.8

21.5

21.7

27.1

42.1

33.7

9.5

8.1

22.3

23.4

6.2

5.4

HUL

Neutral

1,218

263,536

37,077

41,508

20.3

21.8

5,189.9

6,318.5

0.2

37.1

31.7

74.8

82.0

7.0

6.2

ITC

Neutral

262

319,246

44,588

49,853

37.0

37.3

9.6

11.0

27.3

23.8

6.7

6.4

25.1

27.3

6.6

5.9

Marico

Neutral

317

40,940

6,788

7,766

18.5

19.2

7.1

8.5

44.7

37.3

15.6

13.4

36.9

38.0

5.9

5.1

Nestle*

Neutral

7,072

68,187

10,083

11,182

20.0

20.9

119.7

141.3

59.1

50.1

208.2

190.3

36.7

39.8

6.4

5.8

Tata Global

Neutral

205

12,919

7,121

7,641

11.9

12.3

6.9

8.0

29.7

25.6

2.0

1.9

6.8

7.2

1.6

1.5

Procter & Gamble

Neutral

8,300

26,942

3,034

3,579

27.1

27.7

167.7

198.8

49.5

41.8

13.3

11.4

28.8

29.5

8.3

6.9

Hygiene

HCL Tech^

Buy

873

1,014

124,597

52,342

57,053

20.9

62.8

67.6

13.9

12.9

3.1

2.7

22.4

20.6

2.1

1.8

Infosys

Buy

906

1,179

208,209

73,963

80,619

26.0

64.4

69.3

14.1

13.1

2.8

2.6

19.7

19.6

2.2

2.0

TCS

Accumulate

2,475

2,651

487,661

127,403

138,870

27.6

144.5

156.0

17.1

15.9

5.1

4.7

29.7

29.8

3.5

3.1

Tech Mahindra

Buy

446

533

43,520

31,015

33,496

15.0

35.6

38.1

12.5

11.7

2.1

2.0

17.0

16.3

1.2

1.0

www.angelbroking.com

Stock Watch

September 27, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Wipro

Neutral

290

141,256

58,536

61,858

20.3

18.2

19.1

16.0

15.2

2.5

2.2

14.6

13.4

2.3

2.2

Media

D B Corp

Neutral

372

6,841

2,404

2,625

30.5

31.5

23.7

26.9

15.7

13.8

3.7

3.2

23.5

22.8

2.7

2.4

HT Media

Neutral

2,213

2,589

2,830

15.1

15.4

8.3

10.9

11.5

8.7

0.9

0.8

8.4

10.4

0.4

0.3

Jagran Prakashan

Buy

176

225

5,749

2,541

2,835

28.5

28.7

12.7

14.1

13.9

12.5

2.9

2.5

21.3

21.4

2.1

1.8

Sun TV Network

Neutral

771

30,400

3,238

3,789

51.9

55.1

30.9

38.0

25.0

20.3

7.1

6.3

30.0

31.0

8.9

7.5

Hindustan Media

Neutral

260

1,908

1,002

1,074

23.3

23.5

29.2

33.8

8.9

7.7

1.4

1.2

15.6

15.4

0.9

0.6

Ventures

TV Today Network

Buy

373

435

2,225

667

727

27.7

18.6

20.1

18.6

3.1

3.2

15.6

17.3

2.9

2.7

Music Broadcast Limited Accumulate

389

434

2,218

271

317

91.0

109.0

6.0

10.0

64.8

38.9

4.0

3.7

6.5

9.3

7.8

6.4

Metals & Mining

Coal India

Neutral

260

161,579

82,301

91,235

17.0

18.0

17.1

20.5

15.2

12.7

2.9

2.7

45.0

55.0

1.6

1.5

Hind. Zinc

Neutral

300

126,612

22,108

24,555

57.0

58.0

22.1

26.3

13.6

11.4

4.4

3.6

32.0

35.0

4.7

3.9

Hindalco

Neutral

234

52,601

102,350

105,355

13.5

14.5

21.5

24.5

10.9

9.6

1.5

1.3

15.0

15.2

1.1

1.0

JSW Steel

Neutral

242

58,569

64,500

68,245

21.1

21.5

20.1

21.2

12.1

11.4

2.2

1.9

1.6

NMDC

Neutral

123

38,932

10,209

11,450

47.0

48.0

11.1

12.1

11.1

10.2

1.5

3.3

3.0

SAIL

Neutral

23,418

54,100

63,555

3.0

10.0

(10.0)

1.5

37.8

0.8

1.4

1.2

Vedanta

Neutral

318

118,300

81,206

87,345

28.0

29.0

26.5

33.5

12.0

9.5

2.7

2.3

2.2

1.9

Tata Steel

Neutral

654

63,532

121,445

126,500

16.2

17.2

65.4

81.3

10.0

8.1

1.6

1.4

1.0

0.9

Oil & Gas

GAIL

Neutral

398

67,246

53,115

52,344

14.2

15.3

30.0

31.1

13.3

12.8

1.7

1.5

1.0

ONGC

Neutral

172

220,154

83,111

84,934

44.2

44.9

16.4

16.9

10.5

10.2

1.3

1.2

2.5

Indian Oil Corp

Neutral

400

194,066

396,116

432,560

8.5

8.8

40.1

42.2

10.0

9.5

1.7

1.5

0.6

Reliance Industries

Neutral

819

532,791

257,711

267,438

17.0

18.2

89.1

89.5

9.2

0.9

0.8

1.7

1.6

Pharmaceuticals

Alembic Pharma

Buy

492

600

9,283

3,903

4,584

18.2

19.2

21.8

27.2

22.6

18.1

4.1

3.4

19.8

20.6

2.4

2.0

Alkem Laboratories Ltd

Accumulate

1,881

2,079

22,486

6,320

7,341

17.5

19.8

72.7

96.6

25.9

19.5

4.6

3.9

16.7

18.7

3.5

2.9

Aurobindo Pharma

Buy

709

823

41,510

17,086

19,478

22.1

22.0

44.7

51.4

15.9

13.8

3.5

2.8

24.7

22.7

2.5

2.2

Aventis*

Neutral

4,056

9,341

2,508

2,862

16.8

139.9

153.8

29.0

26.4

4.2

3.4

23.5

25.8

3.3

2.7

Cadila Healthcare

Reduce

474

426

48,556

11,584

13,228

20.3

20.4

18.7

21.3

25.4

22.3

5.7

4.6

24.6

22.9

4.0

3.5

Cipla

Sell

578

458

46,523

16,619

19,437

15.4

16.2

19.7

24.3

29.4

23.8

3.3

3.0

12.0

13.2

3.0

2.5

Dr Reddy's

Neutral

2,367

39,239

15,844

17,973

17.6

18.2

91.7

111.0

25.8

21.3

2.9

2.7

11.9

13.0

2.7

2.4

GSK Pharma*

Neutral

2,448

20,737

3,260

3,651

15.0

18.0

46.1

58.6

53.1

41.8

10.9

11.3

20.0

26.5

6.3

5.7

Indoco Remedies

Sell

206

153

1,900

1,154

1,310

14.9

11.3

12.7

18.2

16.2

2.6

2.3

15.0

1.8

1.5

www.angelbroking.com

Stock Watch

September 27, 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

Accumulate

511

540

6,450

3,593

4,022

14.5

15.5

19.4

25.2

26.4

20.3

2.4

2.2

9.5

11.2

1.9

1.7

Lupin

Buy

1,005

1,467

45,412

18,657

21,289

21.3

23.3

52.8

66.7

19.0

15.1

2.9

2.4

16.3

17.5

2.4

2.0

Natco Pharma

Neutral

786

13,695

1,836

1,946

31.8

28.9

22.1

20.6

35.5

38.1

7.1

6.4

20.1

16.7

7.3

6.9

Sun Pharma

Accumulate

507

558

121,750

32,899

36,451

26.9

25.4

31.6

32.3

16.1

15.7

2.8

2.5

18.7

18.8

3.3

2.8

Syngene International

Accumulate

500

557

10,005

1,402

1,823

32.8

36.0

15.9

20.7

31.5

24.2

5.9

4.8

18.7

20.0

7.1

5.5

Power

Tata Power

Neutral

21,625

32,547

33,806

20.5

4.7

5.4

17.0

14.9

1.6

1.4

10.5

1.7

1.6

NTPC

Neutral

167

137,576

86,070

101,246

28.3

30.7

12.9

16.2

12.9

10.3

1.3

1.2

10.6

12.4

3.0

2.7

Power Grid

Accumulate

211

223

110,256

29,183

32,946

89.7

90.0

18.0

20.8

11.7

10.1

2.0

1.7

17.7

18.2

7.7

7.2

Real Estate

Prestige Estate

Neutral

266

9,990

4,607

5,146

21.0

22.2

7.9

9.8

33.7

27.2

2.1

1.9

10.3

12.0

3.3

3.0

MLIFE

Accumulate

482

522

2,472

487

590

12.3

17.8

21.0

31.2

22.9

15.4

1.2

1.1

5.2

7.4

3.8

3.1

Telecom

Bharti Airtel

Neutral

387

154,819

97,903

105,233

36.0

36.3

9.3

11.1

41.7

35.1

2.0

1.9

5.0

5.6

2.5

2.3

Idea Cellular

Neutral

27,412

35,012

37,689

27.1

27.7

(4.4)

(2.7)

1.2

(6.8)

(4.6)

2.1

1.9

zOthers

Abbott India

Neutral

4,188

8,899

3,244

3,723

14.9

16.1

167.5

209.4

25.0

20.0

5.5

4.6

23.7

24.8

2.4

2.0

Asian Granito

Buy

476

570

1,432

1,169

1,286

12.5

16.0

19.7

29.8

24.2

3.2

2.8

10.7

11.6

1.5

1.3

Bajaj Electricals

Accumulate

359

395

3,640

4,646

5,301

6.7

7.6

16.1

22.3

16.1

3.6

3.1

16.4

19.2

0.8

0.7

Banco Products (India)

Neutral

209

1,497

1,530

1,695

13.2

12.7

19.0

20.0

11.0

10.5

1.8

1.6

0.2

0.9

98.5

Coffee Day Enterprises

Neutral

217

4,463

3,494

3,913

17.4

18.0

4.8

5.7

38.0

1.9

1.8

0.1

1.7

1.5

Ltd

Elecon Engineering

Neutral

613

171

201

15.0

16.2

36.0

43.0

1.5

1.3

0.1

3.0

2.5

Garware Wall Ropes

Neutral

853

1,865

928

1,003

15.2

39.4

43.2

21.6

19.8

3.6

3.1

16.5

15.4

1.9

1.7

Goodyear India*

Neutral

817

1,885

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

113.6

Hitachi

Neutral

1,882

5,118

2,355

2,715

10.3

10.8

49.0

60.9

38.4

30.9

9.0

7.1

0.2

2.2

1.9

HSIL

Neutral

389

2,811

2,240

2,670

14.6

15.0

17.0

22.0

22.9

17.7

1.9

1.8

0.1

1.5

1.2

Interglobe Aviation

Neutral

1,043

37,726

22,570

27,955

14.2

15.0

63.6

81.8

16.4

12.8

8.6

7.3

0.5

0.6

1.4

1.0

Jyothy Laboratories

Neutral

382

6,948

1,781

2,044

14.1

15.0

9.4

10.5

40.9

36.4

8.7

8.2

0.2

4.1

3.5

Linc Pen & Plastics

Neutral

225

333

420

462

9.3

15.3

17.1

14.7

13.2

2.5

2.6

16.9

19.5

0.8

M M Forgings

Neutral

643

776

542

642

20.1

21.0

41.6

56.8

15.5

11.3

2.1

1.8

0.1

0.2

1.8

1.6

Mirza International

Neutral

160

1,924

1,148

1,285

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

186

265

2,653

561

617

41.5

11.5

12.7

16.2

14.6

1.7

1.5

10.5

10.4

5.4

4.7

Nilkamal

Neutral

1,551

2,314

2,317

2,525

11.4

11.1

96.0

105.0

16.2

14.8

2.7

2.4

0.2

1.0

0.9

www.angelbroking.com

Stock Watch

September 27, 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

239

2,010

1,987

2,379

7.6

9.0

12.4

18.3

19.3

13.1

2.7

2.4

8.2

13.2

1.1

1.0

Radico Khaitan

Neutral

158

2,102

1,811

1,992

13.2

8.1

8.8

19.5

17.9

2.0

2.2

10.1

12.0

1.5

1.4

Relaxo Footwears

Neutral

505

6,068

1,981

2,310

13.7

14.5

12.0

15.5

42.1

32.6

8.2

6.6

0.2

3.1

2.7

Siyaram Silk Mills

Buy

2,152

2,500

2,018

1,769

1,981

12.7

113.1

131.1

19.0

16.4

2.9

2.5

15.5

1.3

1.2

Styrolution ABS India* Neutral

852

1,498

1,800

1,980

8.0

8.1

42.0

46.2

20.3

18.4

2.3

2.0

0.1

0.9

Surya Roshni

Neutral

306

1,342

4,870

5,320

7.7

7.8

22.8

28.1

13.5

10.9

1.8

1.5

0.1

0.5

0.4

TVS Srichakra

Neutral

3,192

2,444

2,729

2,893

12.7

12.5

248.5

265.0

12.8

12.0

3.6

3.0

0.3

0.9

0.8

Visaka Industries

Neutral

597

948

1,104

1,214

12.1

12.6

31.0

37.9

19.3

15.8

2.3

2.1

0.1

1.1

1.0

VIP Industries

Buy

246

300

3,471

1,450

1,693

10.4

10.5

6.5

7.8

37.5

31.4

7.9

6.9

21.1

22.1

2.4

2.0

Navin Fluorine

Accumulate

662

730

3,262

945

1,154

22.4

22.6

28.7

34.8

23.1

19.0

3.8

3.3

3.0

2.3

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on September 26, 2017

www.angelbroking.com

Market Outlook

September 27, 2017

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make

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