Market Outlook
October 31, 2017
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open negative tracking global indices and SGX Nifty.
BSE Sensex
0.3
109
33,266
Nifty
0.4
41
10,364
U.S. markets closed lower Monday as a report that the House of Representatives is
considering phasing in a cut to corporate taxes rather than enacting them
Mid Cap
1.1
186
16,565
immediately weighed on investors’ confidence.
Small Cap
1.2
216
17,520
Bankex
0.4
118
28,214
The European markets remained stuck in a narrow trading range throughout
Monday's session. The markets ended the day with mixed results, but remained little
Global Indices
Chg (%)
(Pts)
(Close)
changed overall.
Dow Jones
(0.4)
(85)
23,349
Indian markets eked out modest gains to close at fresh record highs on Monday,
Nasdaq
(0.0)
(2)
6,699
with positive earnings updates and expectations that the RBI will cut interest rates in
FTSE
(0.2)
(17)
7,488
December supporting underlying sentiment.
Nikkei
0.0
3
22,012
News Analysis
Hang Seng
(0.4)
(103)
28,336
Result Review: Lupin, UPL
Shanghai Com
(0.8)
(26)
3,390
Detailed analysis on Pg2
Advances / Declines
BSE
NSE
Investor’s Ready Reckoner
Advances
1,711
1,150
Key Domestic & Global Indicators
Declines
1,046
603
Stock Watch: Latest investment recommendations on 150+ stocks
Unchanged
150
64
Refer Pg5 onwards
Volumes (` Cr)
Top Picks
CMP
Target
Upside
Company
Sector
Rating
BSE
4,282
(`)
(`)
(%)
NSE
32,976
Blue Star
Capital Goods Accumulate
804
867
7.8
Dewan Housing Finance
Financials
Accumulate
648
690
6.5
Asian Granito
Other
Buy
496
570
15.0
Net Inflows (` Cr)
Net
Mtd
Ytd
Navkar Corporation
Other
Buy
195
265
36.0
FII
193
1,922
38,451
KEI Industries
Capital Goods Accumulate
333
380
14.3
MFs
308
8,621
94,964
More Top Picks on Pg4
Key Upcoming Events
Top Gainers
Price (`)
Chg (%)
Previous
Consensus
Date
Region
Event Description
Reading
Expectations
Sparc
437
15.1
Oct 31
China
PMI Manufacturing
52.40
52.00
Piind
823
9.2
Oct 31
Euro Zone Euro-Zone GDP s.a. (QoQ)
0.70
0.50
Jetairways
569
8.6
Oct 31
US
Consumer Confidence
119.80
121.00
Syndibank
84
8.2
Nov01
UK
PMI Manufacturing
55.90
55.90
Oil
377
7.4
Nov01
Germany PMI Manufacturing
60.50
60.50
More Events on Pg7
Top Losers
Price (`)
Chg (%)
Adanitrans
218
(5.0)
Religare
38
(3.2)
Kscl
570
(2.8)
Idfc
62
(2.7)
Network18
49
(2.6)
As on October, 30 2017
Market Outlook
October 31, 2017
News Analysis
Lupin (CMP: `1,028 / TP: `1,467 /Upside: 42.7%)
The company posted lower than expected sales, while EBDITA and net profit came
in higher than expected. In rupee terms, revenues came in at `30,541cr V/s
`3,874.2cr, down 8.0% yoy.
In terms of geography, USA (North America posted 31.9% dip yoy on back of
pricing pressures, India another key market posted a 16.4% yoy growth. Other
markets, like APAC, EMEA, LATAM, posted a yoy growth of 15.2%, 17.1% and
41.5% respectively. ROW posted a dip of 4.5% yoy.
On the operating front the EBITDA margin, came in at 20.0% V/s 19.6% expected,
on back of much lower than expected other expenses, which dipped by 24% yoy.
Consequently, PAT came in at `456cr V/s `421cr expected, a dip of 31.3% yoy.
We maintain our buy rating on the stock, with a price target of `1,467.
Y/E
Sales OPM
PAT
EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
18,657
21.3
2,373
52.8
16.3
19.5
2.9
11.9
2.5
FY2018E
21,289
23.3
2,997
66.7
17.5
15.4
2.5
9.0
2.1
UPL (CMP: `823 / TP: /Upside :)
In rupee terms, revenues came in at `3,770cr V/s `3,541cr, up 6.5% yoy. On the
operating front the EBITDA margin, came in at 18.0% V/s 15.5% in 2QFY2017,
on back of better expected Gross margins (56.1% v/s 53.4% in 2QFY2017).
Consequently, PAT came in at `237cr V/s `165cr expected, a growth of 43.6%
yoy. We maintain our neutral rating on the stock.
Y/E
Sales OPM
PAT
EPS ROE P/E P/BV EV/EBITDA EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
(x)
FY2017E
18,922
18.0
1,834
36.2
22.7
22.8
4.8
13.9
2.5
FY2018E
21,949
18.5
2,310
45.6
23.8
18.1
3.9
11.3
2.1
Economic and Political News
Mineral production up by 9.4 %
Wind bidding guidelines soon, 1000 MW may be commissioned this year
Railways will invest `3,500cr in Jharkhand in FY18: Piyush Goyal
Corporate News
Marico Q2 consolidated net up over 2% to `185cr led by volume growth
Reliance Home Finance Q2 net jumps 105% to `41cr
Lupin Q2 profit down 31% at `455cr, but slightly above consensus
Market Outlook
October 31, 2017
Quarterly Bloomberg Brokers Consensus Estimate
Dr. Reddy Ltd - Oct 31, 2017
Particulars ( ` cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY18
q-o-q (%)
Sales
3,714
3,616
2.7
3,333
11.4
EBIDTA
601
627
(4.2)
323
86
%
16.2
17.3
9.7
PAT
285
308
(7.5)
67
325
Bharti Airtel Ltd - Oct 31, 2017
Particulars ( ` cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY18
q-o-q (%)
Sales
21,754
24,671
(11.8)
21,958
(0.9)
EBIDTA
7,554
9,453
(20.1)
7,708
(1.9)
%
34.8
38.3
35.1
PAT
351
1,460
(75.9)
617
(43.1)
JSW Steel Ltd - Oct 31, 2017
Particulars ( ` cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY18
q-o-q (%)
Sales
15,953
12,237
30.4
13,837
15.3
EBIDTA
3,239
2,717
19.2
2,198
47.4
%
20.3
22.2
15.9
PAT
1,031
671
53.6
419
146
Dabur Ltd - Oct 31, 2017
Particulars ( ` cr)
2QFY18E
2QFY17
y-o-y (%)
1QFY18
q-o-q (%)
Sales
2,032
1,981
2.6
1,790
13.5
EBIDTA
417
408
2.3
294
41.9
%
20.6
20.6
16.5
PAT
364
357
1.9
265
37.4
Market Outlook
October 31, 2017
Top Picks HHHHH
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
Strong growth in domestic business due to its leade`hip
in acute therapeutic segment. Alkem expects to launch
Alkem Laboratories
22,164
1,854
2,079
12.2
more products in USA, which bodes for its international
business.
We expect the company would report strong profitability
Asian Granito
1,491
496
570
15.0
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
7,699
804
867
7.8
market growth. EMPPAC division's profitability to
improve once operating environment turns around.
With a focus on the low and medium income (LMI)
consumer segment, the company has increased its
Dewan Housing Finance
20,315
648
690
6.5
presence in tier-II & III cities where the growth
opportunity is immense.
Loan growth is likely to pick up after a sluggish FY17.
Lower credit cost will help in strong bottom-line growth.
Karur Vysya Bank
7,669
127
180
41.8
Increasing share of CASA will help in NIM
improvement.
High order book execution in EPC segment, rising B2C
KEI Industries
2,587
333
380
14.3
sales and higher exports to boost the revenues and
profitability
Expected to benefit from the lower capex requirement
Music Broadcast
2,197
385
434
12.7
and 15 year long radio broadcast licensing.
Massive capacity expansion along with rail advantage
Navkar Corporation
2,779
195
265
36.0
at ICD as well CFS augur well for the company
Strong brands and distribution network would boost
Siyaram Silk Mills
2,785
594
650
9.4
growth going ahead. Stock currently trades at an
inexpensive valuation.
Market leadership in Hindi news genre and no.
2
viewership ranking in English news genre, exit from the
TV Today Network
2,135
358
435
21.6
radio business, and anticipated growth in ad spends by
corporate to benefit the stock.
After GST, the company is expected to see higher
volumes along with improving product mix. The Gujarat
Maruti Suzuki
2,47,511
8,194
8,658
5.7
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
2,640
490
655
33.6
year; change in borrowing mix will help in NIM
improvement..
Source: Company, Angel Research
Market Outlook
October 31, 2017
Key Upcoming Events
Result Calendar
D ate
C ompany
October 31, 2017
Blue Star, IDBI Bank, Syndicate Bank, Dabur Indi a, KPIT Cummins, D B Corp, JS W Steel , L G Balakrishnan & Bros
November 01, 2017
Hero Motocorp, TVS Motor, Apollo Tyres, Subros, Shriram Trans., Godrej Consumer, Tech Mahindra, Hexaware
Source: Bloomberg, Angel Research
Global economic events release calendar
Bl oomberg Data
D ate
Time
C ountry
Event Description
Unit
Period
L ast Reporte d
E stimate d
Oct 31, 2017
6:30 AMChina
PMI Manufacturing
Value
Oct
52.40
52.00
3:30 PMEuro Zone Euro-Zone GDP s.a. (QoQ)
% Change
3Q A
0.70
0.50
7:30 PMUS
Consumer Confidence
S.A./ 1985=100
Oct
119.80
121.00
Nov 01, 2017
3:00 PMUK
PMI Manufacturing
Value
Oct
55.90
55.90
2:25 PMGermany PMI Manufacturing
Value
Oct F
60.50
60.50
Nov 02, 2017
11: 30 PMUS
FOMC rate decision
%
Nov 1
1.25
1.25
6:00 PMUS
Initial Jobless claims
Thousands
Oct 28
233.00
235.00
2:25 PMGermany Unempl oyment change (000's)
Thousands
Oct
(22.00)
(10.00)
5:30 PMUK
BOE Announce s rate s
% Ratio
Nov 2
0.25
0.50
Nov 03, 2017
6:00 PMUS
Change in N onfarm payrolls
Thousands
Oct
(33.00)
310.00
6:00 PMUS
Unnemployment rate
%
Oct
4.20
4.20
Nov 06, 2017
2:25 PMGermany PMI Services
Value
Oct F
55.20
Nov 08, 2017
China
Exports YoY%
% Change
Oct
8.10
Nov 09, 2017
7:00 AMChina
Consumer Price Index (YoY)
% Change
Oct
1.60
3:00 PMUK
Industrial Production (YoY)
% Change
Sep
1.60
Source: Bloomberg, Angel Research
Market Outlook
October 31, 2017
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
10.0
6.0
9.1
5.1
8.8
9.0
5.0
4.4
4.3
8.0
7.9
4.2
7.6
7.5
8.0
7.3
7.2
4.0
3.5
7.0
3.2
2.9
7.0
6.1
6.1
3.0
2.4
5.7
6.0
2.0
1.2
0.9
5.0
1.0
4.0
-
3.0
(1.0)
(0.2)
Source: CSO, Angel Research
Source: MOSPI, Angel Research
Exhibit 3: Monthly CPI inflation trends
Exhibit 4: Manufacturing and services PMI
56.0
Mfg. PMI
Services PMI
(%)
4.5
4.2
54.0
3.9
4.0
3.6
3.7
52.0
3.4
3.3
3.3
3.5
3.2
3.0
50.0
3.0
2.2
2.4
48.0
2.5
2.0
46.0
1.5
1.5
44.0
1.0
42.0
0.5
40.0
-
Source: Market, Angel Research; Note: Level above 50 indicates expansion
Source: MOSPI, Angel Research
Exhibit 5: Exports and imports growth trends
Exhibit 6: Key policy rates
(%)
Exports yoy growth
Imports yoy growth
(%)
Repo rate
Reverse Repo rate
CRR
60.0
6.50
50.0
6.00
5.50
40.0
5.00
30.0
4.50
20.0
4.00
10.0
3.50
0.0
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
Market Outlook
October 31, 2017
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
6.9
7.0
5.8
6.0
5.3
5.0
5.0
1.1
3.7
4.0
2.5
3.0
2.2
1.8
2.0
1.5
1.4
0.8
1.0
0.3
-
Source: Bloomberg, Angel Research
Exhibit 2: 2017 GDP Growth projection by IMF (%, yoy) across select developing and developed countries
(%)
6.7
6.8
7.0
6.0
5.4
5.2
5.0
3.7
4.0
3.0
1.8
2.2
2.0
1.7
1.6
2.0
0.7
1.5
0.7
1.0
-
Source: IMF, Angel Research
Exhibit 3: One year forward P-E ratio across select developing and developed countries
(x)
25.0
20.0
15.0
10.0
5.0
-
Source: IMF, Angel Research
Market Outlook
October 31, 2017
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
74,800
1.4
14.2
17.2
Russia
Micex
2,065
(0.3)
6.4
3.4
India
Nifty
10,364
5.0
3.4
20.3
China
Shanghai Composite
3,390
0.8
4.1
9.3
South Africa
Top 40
52,479
7.4
8.1
16.6
Mexico
Mexbol
48,855
(2.6)
(4.6)
3.3
Indonesia
LQ45
985
1.3
1.8
6.5
Malaysia
KLCI
1,748
(0.9)
(0.9)
4.9
Thailand
SET 50
1,093
2.4
8.7
16.3
USA
Dow Jones
23,349
4.3
6.7
28.7
UK
FTSE
7,488
2.3
1.6
8.3
Japan
Nikkei
22,012
8.6
9.6
27.7
Germany
DAX
13,230
4.5
9.2
28.1
France
CAC
5,494
3.8
7.2
23.1
Source: Bloomberg, Angel Research p68in4
Stock Watch
October 31, 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
Sell
247
209
4,795
1,873
2,099
15.0
15.0
9.5
10.5
26.0
23.5
3.9
3.6
15.8
16.0
2.5
2.2
United Phosphorus
Neutral
823
-
41,824
18,922
21,949
18.0
18.5
36.2
45.6
22.7
18.1
4.8
3.9
22.7
23.8
2.4
2.0
Auto & Auto Ancillary
Ashok Leyland
Neutral
129
-
37,621
23,339
27,240
10.1
10.8
4.7
6.2
27.7
20.7
5.5
4.9
20.0
23.6
1.6
1.3
Bajaj Auto
Neutral
3,275
-
94,760
23,936
27,955
19.5
20.1
142.7
167.3
22.9
19.6
5.0
4.5
21.8
22.8
3.6
3.0
Bharat Forge
Buy
696
875
32,410
7,637
8,755
21.7
23.2
36.1
47.3
19.3
14.7
3.5
3.0
18.5
20.8
4.1
3.5
Eicher Motors
Neutral
32,371
-
88,122
19,043
22,837
19.5
19.9
835.4
1,019.0
38.8
31.8
14.5
11.2
40.9
37.8
4.5
3.7
Gabriel India
Neutral
198
-
2,840
1,782
2,033
9.7
10.2
7.1
8.9
27.9
22.3
5.6
4.8
21.0
22.2
1.5
1.3
Hero Motocorp
Accumulate
3,831
4,129
76,500
32,239
36,878
16.0
15.6
184.4
206.5
20.8
18.6
6.5
5.7
31.3
30.7
2.2
1.8
Jamna Auto Industries Neutral
66
-
2,628
1,441
1,662
14.4
14.8
13.9
17.6
4.7
3.8
1.3
1.1
30.0
31.0
1.8
1.5
Mahindra and Mahindra Neutral
1,374
-
85,366
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
8,194
8,658
247,511
81,825
101,245
15.0
15.0
283.5
356.0
28.9
23.0
6.3
5.1
21.9
22.4
2.7
2.1
Minda Industries
Neutral
824
-
7,125
4,328
5,084
11.0
11.9
27.3
36.4
30.3
22.7
6.4
5.0
23.1
25.6
1.7
1.5
Motherson Sumi
Neutral
365
-
76,744
55,937
64,445
10.8
11.4
16.9
21.1
21.6
17.3
4.8
4.9
25.2
25.4
1.4
1.2
Tata Motors
Neutral
436
-
125,831
303,167
343,649
11.8
13.8
33.1
54.7
13.2
8.0
2.2
1.7
16.9
23.0
0.5
0.4
TVS Motor
Neutral
723
-
34,335
13,992
16,216
9.0
9.4
17.1
20.3
42.4
35.6
11.3
8.7
29.7
27.7
2.4
2.0
Amara Raja Batteries
Buy
682
858
11,652
6,140
7,122
14.3
15.6
29.3
39.0
23.3
17.5
4.0
3.3
17.1
19.0
1.9
1.6
Exide Industries
Neutral
205
-
17,400
8,689
9,854
15.1
15.2
9.7
11.0
21.2
18.6
3.8
3.3
15.7
16.1
1.7
1.5
Apollo Tyres
Neutral
247
-
12,570
15,739
17,326
13.3
14.6
20.4
26.7
12.1
9.3
1.5
1.3
20.4
26.7
1.0
0.9
Ceat
Neutral
1,691
-
6,839
6,661
7,717
11.1
14.2
116.2
178.2
14.6
9.5
2.5
2.1
15.2
21.3
1.1
1.0
JK Tyres
Neutral
147
-
3,334
8,318
9,239
16.2
16.4
21.0
27.5
7.0
5.4
1.4
1.1
19.1
20.4
0.8
0.7
Swaraj Engines
Neutral
2,018
-
2,507
788
889
16.4
16.5
71.6
81.0
28.2
24.9
8.1
7.6
29.6
31.0
2.8
2.5
Subros
Neutral
272
-
1,633
1,855
2,135
11.6
11.8
10.3
14.7
26.6
18.6
4.0
3.5
15.8
19.1
1.1
0.9
Capital Goods
BEML
Neutral
1,705
-
7,101
4,286
5,194
7.1
8.2
42.9
58.1
39.8
29.4
3.3
3.0
7.6
8.7
1.7
1.4
Bharat Electronics
Neutral
176
-
43,120
10,258
12,470
19.6
19.5
7.3
8.6
24.0
20.4
0.5
0.4
20.4
21.9
3.7
3.0
Voltas
Neutral
560
-
18,520
6,778
8,004
9.6
11.0
17.1
22.4
32.7
25.0
7.8
6.8
17.7
19.8
2.4
2.0
BHEL
Neutral
96
-
35,172
33,200
39,167
6.8
9.5
6.2
11.2
15.5
8.6
0.7
0.7
4.6
8.0
0.6
0.5
Blue Star
Accumulate
804
867
7,699
5,220
6,207
6.3
6.6
16.8
22.3
47.8
36.1
9.5
8.4
19.9
23.3
1.4
1.2
CG Power and Industrial
Neutral
82
-
5,142
6,555
7,292
7.5
7.5
-
0.8
8,205.0
102.6
1.3
1.3
0.1
1.2
0.9
0.8
Solutions
Greaves Cotton
Neutral
130
-
3,169
1,778
1,993
14.7
15.1
8.1
9.1
16.0
14.3
3.6
3.4
21.8
23.6
1.5
1.4
Stock Watch
October 31, 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Capital Goods
KEC International
Buy
297
350
7,638
9,779
11,113
9.4
9.8
14.2
18.2
20.9
16.3
4.0
3.3
21.1
22.1
1.0
0.9
KEI Industries
Accumulate
333
380
2,587
3,001
3,391
10.0
10.0
13.0
16.1
25.6
20.6
4.7
3.9
18.2
18.7
1.0
0.9
Thermax
Neutral
992
-
11,822
4,125
4,747
10.3
10.8
26.7
31.5
37.2
31.5
4.2
3.8
11.2
12.0
2.6
2.3
VATech Wabag
Buy
588
681
3,213
3,867
4,126
9.6
10.0
34.9
39.8
16.9
14.8
2.8
2.4
17.7
17.5
0.8
0.8
Cement
ACC
Neutral
1,818
-
34,144
12,255
13,350
13.5
14.3
58.0
66.2
31.4
27.5
3.7
3.5
11.5
12.2
2.8
2.5
Ambuja Cements
Neutral
283
-
56,224
10,250
11,450
17.5
19.0
7.2
8.3
39.3
34.1
2.8
2.7
7.0
7.8
5.3
4.6
India Cements
Neutral
193
-
5,957
6,135
6,750
14.8
15.2
8.5
11.5
22.7
16.8
1.1
1.1
4.8
6.2
1.3
1.2
JK Cement
Neutral
1,007
-
7,041
4,150
4,775
19.2
20.0
49.0
63.5
20.6
15.9
3.3
2.8
17.0
18.5
2.1
1.8
J K Lakshmi Cement
Neutral
441
-
5,192
3,422
3,757
15.5
17.0
13.5
23.2
32.7
19.0
3.4
2.9
10.8
15.5
1.9
1.7
Orient Cement
Neutral
173
-
3,544
2,215
3,233
16.8
17.0
5.9
6.9
29.3
25.1
2.2
2.1
10.8
10.1
2.6
1.7
UltraTech Cement
Neutral
4,469
-
122,693
28,250
35,150
20.2
23.5
77.5
122.2
57.7
36.6
4.9
4.4
9.6
14.8
4.8
3.9
Construction
KNR Constructions
Neutral
249
-
3,504
1,846
2,203
14.5
14.5
12.1
13.7
20.6
18.3
1.1
1.0
17.5
16.7
1.9
1.6
Larsen & Toubro
Neutral
1,236
-
173,107
95,787
109,476
10.2
11.6
44.5
50.8
27.8
24.4
3.5
3.2
12.9
13.1
2.4
2.1
Gujarat Pipavav Port
Neutral
141
-
6,812
739
842
61.6
62.7
5.1
6.2
27.6
22.9
3.4
3.4
12.7
14.9
8.7
7.5
PNC Infratech
Neutral
183
-
4,693
2,040
2,935
13.0
13.0
6.4
9.0
28.6
20.3
0.7
0.7
9.7
12.2
2.3
1.7
Simplex Infra
Neutral
527
-
2,606
6,012
6,619
11.6
11.7
21.1
31.0
25.0
17.0
1.7
1.6
6.5
8.6
1.0
0.9
Sadbhav Engineering
Neutral
316
-
5,420
3,823
4,426
10.7
10.8
10.3
11.8
30.7
26.8
3.7
3.2
10.1
10.5
1.7
1.5
NBCC
Neutral
266
-
23,918
9,099
12,706
6.4
6.4
7.3
9.6
36.5
27.8
1.6
1.3
27.5
30.5
2.5
1.8
MEP Infra
Neutral
99
-
1,615
2,403
2,910
18.3
16.8
2.4
6.1
42.2
16.4
16.0
10.8
35.2
55.8
1.8
1.5
SIPL
Neutral
115
-
4,042
2,060
2,390
46.8
47.7
(5.8)
(3.1)
4.3
4.9
(14.2)
(2.3)
6.7
6.3
Engineers India
Neutral
187
-
12,625
1,795
2,611
21.1
22.4
5.9
8.1
31.8
23.1
2.3
2.2
12.9
16.1
5.4
3.6
Financials
Axis Bank
Buy
484
580
116,116
32,558
35,843
3.5
3.2
27.8
41.0
17.4
11.8
1.9
1.7
11.4
14.9
-
-
Bank of Baroda
Neutral
174
-
40,115
22,533
26,079
2.4
2.4
12.0
20.9
14.5
8.3
0.9
0.9
6.6
11.0
-
-
Canara Bank
Neutral
414
-
24,701
17,925
20,235
2.0
2.1
18.5
36.5
22.4
11.3
0.8
0.8
3.4
6.2
-
-
Can Fin Homes
Buy
489
2,128
6,505
586
741
3.5
3.5
107.8
141.0
4.5
3.5
1.0
0.8
24.1
25.6
-
-
Cholamandalam Inv. &
Accumulate
1,141
1,230
17,837
2,826
3,307
6.3
6.3
53.7
64.6
21.3
17.7
3.6
3.1
18.3
18.9
-
-
Fin. Co.
Dewan Housing Finance Accumulate
648
690
20,315
2,676
3,383
2.4
2.7
37.4
49.7
17.3
13.0
2.3
2.0
13.8
16.2
-
-
Equitas Holdings
Buy
145
235
4,916
1,125
1,380
9.6
9.8
1.5
6.0
96.7
24.2
2.2
2.0
2.4
8.2
-
-
Federal Bank
Neutral
122
-
23,756
4,896
5,930
2.8
3.1
5.4
7.6
22.7
16.1
1.9
1.8
8.5
11.0
-
-
Stock Watch
October 31, 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
490
655
2,640
376
477
3.6
3.7
33.0
40.0
14.9
12.3
2.7
2.3
20.0
23.0
-
-
HDFC Bank
Neutral
1,814
-
468,711
55,236
63,253
4.5
4.4
68.9
82.4
26.3
22.0
4.6
3.8
18.7
18.5
-
-
ICICI Bank
Neutral
301
-
192,837
42,361
51,378
3.6
3.9
18.4
25.7
16.4
11.7
1.8
1.7
11.3
15.0
-
-
Karur Vysya Bank
Buy
127
180
7,669
3,289
3,630
3.7
3.9
10.8
14.1
11.7
9.0
1.4
1.3
12.5
14.7
-
-
LIC Housing Finance
Neutral
619
-
31,254
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
204
-
43,400
23,708
25,758
2.1
2.1
5.9
16.4
34.7
12.4
1.0
1.0
3.0
8.3
-
-
RBL Bank
Neutral
525
-
21,692
2,309
2,888
2.6
2.5
16.4
19.1
32.1
27.5
4.0
3.6
13.3
13.8
-
-
Repco Home Finance
Buy
613
825
3,835
496
597
4.4
4.2
38.5
48.7
15.9
12.6
2.9
2.4
19.6
20.6
-
-
South Ind.Bank
Neutral
31
-
5,567
3,195
3,567
3.0
3.1
3.0
3.8
10.2
8.1
1.0
0.9
10.5
11.9
-
-
St Bk of India
Neutral
312
-
269,406
105,827
121,056
2.4
2.5
16.1
25.6
19.4
12.2
1.5
1.4
6.6
9.9
-
-
Union Bank
Neutral
184
-
13,355
14,650
16,225
2.3
2.3
23.1
32.5
8.0
5.7
0.6
0.6
7.1
9.2
-
-
Yes Bank
Neutral
314
-
72,002
11,088
13,138
3.0
2.9
84.0
99.3
3.7
3.2
0.6
0.5
16.3
16.8
-
-
FMCG
Akzo Nobel India
Neutral
1,902
-
9,121
3,164
3,607
13.8
13.7
58.6
67.9
32.5
28.0
8.0
7.0
24.5
25.1
2.7
2.4
Asian Paints
Neutral
1,183
-
113,492
17,603
20,615
18.6
18.6
2,128.9
2,543.3
0.6
0.5
11.7
9.9
28.0
28.9
6.2
5.3
Britannia
Neutral
4,740
-
56,907
9,690
11,278
14.8
15.4
84.0
101.0
56.4
46.9
20.6
16.3
40.6
39.0
5.8
5.0
Colgate
Neutral
1,065
-
28,979
4,420
5,074
24.9
25.3
28.6
32.8
37.3
32.5
14.7
11.9
43.8
40.5
6.3
5.5
Dabur India
Neutral
321
-
56,624
8,346
9,344
19.6
19.9
7.8
9.0
41.2
35.7
8.3
7.5
25.2
24.8
6.4
5.6
GlaxoSmith Con*
Neutral
4,955
-
20,839
5,072
5,760
18.2
18.4
176.3
199.2
28.1
24.9
6.0
5.4
21.2
21.7
3.4
3.0
Godrej Consumer
Neutral
928
-
63,217
10,171
11,682
20.8
21.5
21.7
27.1
42.8
34.2
9.6
8.3
22.3
23.4
6.3
5.5
HUL
Neutral
1,236
-
267,508
37,077
41,508
20.3
21.8
5,189.9
6,318.5
0.2
0.2
37.7
32.2
74.8
82.0
7.1
6.3
ITC
Neutral
265
-
322,961
44,588
49,853
37.0
37.3
9.6
11.0
27.6
24.1
6.8
6.5
25.1
27.3
6.7
6.0
Marico
Neutral
313
-
40,437
6,788
7,766
18.5
19.2
7.1
8.5
44.1
36.9
15.4
13.2
36.9
38.0
5.8
5.1
Nestle*
Neutral
7,210
-
69,513
10,083
11,182
20.0
20.9
119.7
141.3
60.2
51.0
212.3
194.0
36.7
39.8
6.6
5.9
Tata Global
Neutral
226
-
14,260
7,121
7,641
11.9
12.3
6.9
8.0
32.8
28.2
2.2
2.1
6.8
7.2
1.8
1.7
Procter & Gamble
Neutral
8,640
-
28,046
3,034
3,579
27.1
27.7
167.7
198.8
51.5
43.5
13.8
11.9
28.8
29.5
8.7
7.3
Hygiene
IT
HCL Tech^
Buy
836
1,014
119,282
50,009
54,608
22.1
22.1
62.8
67.6
13.3
12.4
3.0
2.6
22.4
20.6
2.0
1.8
Infosys
Buy
945
1,120
216,985
70,333
75,960
26.0
26.0
61.7
65.9
15.3
14.3
2.9
2.7
18.9
18.7
2.5
2.2
TCS
Neutral
2,613
-
514,873
123,384
134,488
26.1
26.1
133.2
143.7
19.6
18.2
5.4
5.0
27.6
27.8
3.8
3.5
Tech Mahindra
Accumulate
486
533
47,380
31,015
33,496
15.0
15.0
35.6
38.1
13.6
12.7
2.3
2.2
17.0
16.3
1.3
1.1
Stock Watch
October 31, 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
IT
Wipro
Neutral
293
-
142,691
54,164
56,544
22.3
22.3
18.8
19.5
15.6
15.0
2.5
2.2
15.0
13.6
1.9
1.6
Media
D B Corp
Neutral
369
-
6,780
2,404
2,625
30.5
31.5
23.7
26.9
15.6
13.7
3.7
3.1
23.5
22.8
2.7
2.4
HT Media
Neutral
103
-
2,404
2,589
2,830
15.1
15.4
8.3
10.9
12.5
9.5
1.0
0.9
8.4
10.4
0.5
0.3
Jagran Prakashan
Buy
179
225
5,853
2,541
2,835
28.5
28.7
12.7
14.1
14.1
12.7
2.9
2.5
21.3
21.4
2.2
1.9
Sun TV Network
Neutral
832
-
32,780
3,238
3,789
51.9
55.1
30.9
38.0
26.9
21.9
7.7
6.7
30.0
31.0
9.6
8.1
Hindustan Media
Neutral
238
-
1,743
1,002
1,074
23.3
23.5
29.2
33.8
8.1
7.0
1.3
1.1
15.6
15.4
0.7
0.5
Ventures
TV Today Network
Buy
358
435
2,135
667
727
27.7
27.7
18.6
20.1
19.2
17.8
3.0
3.1
15.6
17.3
2.7
2.5
Music Broadcast Limited Accumulate
385
434
2,197
271
317
91.0
109.0
6.0
10.0
64.2
38.5
4.0
3.6
6.5
9.3
7.7
6.3
Metals & Mining
Coal India
Neutral
289
-
179,332
82,301
91,235
17.0
18.0
17.1
20.5
16.9
14.1
3.2
3.0
45.0
55.0
1.9
1.7
Hind. Zinc
Neutral
318
-
134,302
22,108
24,555
57.0
58.0
22.1
26.3
14.4
12.1
4.7
3.8
32.0
35.0
5.1
4.2
Hindalco
Neutral
273
-
61,228
102,350
105,355
13.5
14.5
21.5
24.5
12.7
11.1
1.8
1.5
15.0
15.2
1.2
1.1
JSW Steel
Neutral
264
-
63,742
64,500
68,245
21.1
21.5
20.1
21.2
13.1
12.4
2.4
2.1
-
-
1.7
1.6
NMDC
Neutral
130
-
41,036
10,209
11,450
47.0
48.0
11.1
12.1
11.7
10.7
1.6
1.5
-
-
3.5
3.2
SAIL
Neutral
80
-
33,041
54,100
63,555
3.0
10.0
(10.0)
1.5
53.3
1.1
1.1
-
-
1.6
1.4
Vedanta
Neutral
341
-
126,738
81,206
87,345
28.0
29.0
26.5
33.5
12.9
10.2
2.9
2.5
-
-
2.3
2.0
Tata Steel
Neutral
719
-
69,811
121,445
126,500
16.2
17.2
65.4
81.3
11.0
8.9
1.8
1.5
-
-
1.1
1.0
Oil & Gas
GAIL
Neutral
473
-
79,982
53,115
52,344
14.2
15.3
30.0
31.1
15.8
15.2
2.0
1.8
-
-
1.2
1.2
ONGC
Neutral
187
-
239,532
83,111
84,934
44.2
44.9
16.4
16.9
11.4
11.0
1.4
1.3
-
-
2.8
2.7
Indian Oil Corp
Neutral
416
-
202,127
396,116
432,560
8.5
8.8
40.1
42.2
10.4
9.9
1.8
1.6
-
-
0.7
0.6
Reliance Industries
Neutral
940
-
611,455
257,711
267,438
17.0
18.2
89.1
89.5
10.6
10.5
1.0
0.9
-
-
2.0
1.9
Pharmaceuticals
Alembic Pharma
Buy
513
600
9,666
3,903
4,584
18.2
19.2
21.8
27.2
23.5
18.9
4.3
3.6
19.8
20.6
2.5
2.1
Alkem Laboratories Ltd
Accumulate
1,854
2,079
22,164
6,320
7,341
17.5
19.8
72.7
96.6
25.5
19.2
4.5
3.8
16.7
18.7
3.4
2.9
Aurobindo Pharma
Accumulate
768
823
44,981
17,086
19,478
22.1
22.0
44.7
51.4
17.2
14.9
3.8
3.1
24.7
22.7
2.7
2.4
Aventis*
Neutral
4,208
-
9,692
2,508
2,862
16.8
16.8
139.9
153.8
30.1
27.4
4.4
3.5
23.5
25.8
3.5
2.9
Cadila Healthcare
Reduce
498
426
50,936
11,584
13,228
20.3
20.4
18.7
21.3
26.6
23.4
5.9
4.9
24.6
22.9
4.2
3.6
Cipla
Sell
627
458
50,426
16,619
19,437
15.4
16.2
19.7
24.3
31.8
25.8
3.6
3.2
12.0
13.2
3.2
2.7
Dr Reddy's
Neutral
2,433
-
40,337
15,844
17,973
17.6
18.2
91.7
111.0
26.5
21.9
3.0
2.7
11.9
13.0
2.8
2.5
GSK Pharma*
Neutral
2,552
-
21,613
3,260
3,651
15.0
18.0
46.1
58.6
55.4
43.5
11.4
11.7
20.0
26.5
6.5
5.9
Indoco Remedies
Sell
262
153
2,415
1,154
1,310
14.9
14.9
11.3
12.7
23.2
20.6
3.3
2.9
15.0
15.0
2.2
1.9
Stock Watch
October 31, 2017
Company Name
Reco
CMP
Target
Mkt Cap
Sales ( Čcr )
OPM(%)
EPS (Č)
PER(x)
P/BV(x)
RoE(%)
EV/Sales(x)
(Č)
Price ( Č)
( Č cr )
FY18E FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
FY18E
FY19E
Pharmaceuticals
Ipca labs
Neutral
532
-
6,718
3,593
4,022
14.5
15.5
19.4
25.2
27.5
21.1
2.5
2.3
9.5
11.2
1.9
1.7
Lupin
Buy
1,028
1,467
46,424
18,657
21,289
21.3
23.3
52.8
66.7
19.5
15.4
2.9
2.5
16.3
17.5
2.5
2.1
Natco Pharma
Accumulate
965
1,057
16,829
1,886
2,016
32.3
29.5
23.2
22.0
41.7
43.8
8.7
7.7
20.9
17.6
8.8
8.2
Sun Pharma
Neutral
553
-
132,714
32,899
36,451
26.9
25.4
31.6
32.3
17.5
17.1
3.1
2.7
18.7
18.8
3.7
3.1
Syngene International
Accumulate
509
557
10,179
1,402
1,823
32.8
36.0
15.9
20.7
32.1
24.6
6.0
4.9
18.7
20.0
7.2
5.6
Power
Tata Power
Neutral
86
-
23,248
32,547
33,806
20.5
20.5
4.7
5.4
18.3
16.1
1.7
1.5
10.5
10.5
1.7
1.6
NTPC
Neutral
183
-
150,480
86,070
101,246
28.3
30.7
12.9
16.2
14.2
11.3
1.5
1.4
10.6
12.4
3.1
2.8
Power Grid
Neutral
213
-
111,171
29,183
32,946
89.7
90.0
18.0
20.8
11.8
10.2
2.0
1.8
17.7
18.2
7.7
7.2
Real Estate
Prestige Estate
Neutral
296
-
11,117
4,607
5,146
21.0
22.2
7.9
9.8
37.5
30.3
2.3
2.1
10.3
12.0
3.6
3.3
MLIFE
Buy
449
522
2,306
487
590
12.3
17.8
21.0
31.2
21.4
14.4
1.1
1.1
5.2
7.4
3.5
2.8
Telecom
Bharti Airtel
Neutral
493
-
196,992
97,903
105,233
36.0
36.3
9.3
11.1
53.0
44.6
2.6
2.4
5.0
5.6
3.0
2.7
Idea Cellular
Neutral
95
-
34,157
35,012
37,689
27.1
27.7
(4.4)
(2.7)
1.5
1.5
(6.8)
(4.6)
2.3
2.1
zOthers
Abbott India
Neutral
4,251
-
9,034
3,244
3,723
14.9
16.1
167.5
209.4
25.4
20.3
5.6
4.7
23.7
24.8
2.4
2.0
Asian Granito
Buy
496
570
1,491
1,169
1,286
12.5
12.5
16.0
19.7
31.0
25.1
3.3
2.9
10.7
11.6
1.5
1.3
Bajaj Electricals
Neutral
386
-
3,914
4,646
5,301
6.7
7.6
16.1
22.3
24.0
17.3
3.9
3.3
16.4
19.2
0.8
0.7
Banco Products (India)
Neutral
216
-
1,546
1,530
1,695
13.2
12.7
19.0
20.0
11.4
10.8
1.8
1.6
0.2
0.2
0.9
102.2
Coffee Day Enterprises
Neutral
225
-
4,630
3,494
3,913
17.4
18.0
4.8
5.7
-
39.4
2.0
1.9
-
0.1
1.8
1.6
Ltd
Elecon Engineering
Neutral
73
-
815
171
201
15.0
16.2
36.0
43.0
2.0
1.7
0.2
0.2
0.1
0.1
4.1
3.5
Garware Wall Ropes
Neutral
948
-
2,073
928
1,003
15.2
15.2
39.4
43.2
24.0
22.0
4.0
3.4
16.5
15.4
2.1
1.9
Goodyear India*
Neutral
816
-
1,882
1,717
1,866
11.8
12.3
47.9
49.8
17.0
16.4
2.6
2.3
15.6
15.7
0.8
113.3
Hitachi
Neutral
2,421
-
6,583
2,355
2,715
10.3
10.8
49.0
60.9
49.4
39.8
11.6
9.1
0.2
0.2
2.8
2.4
HSIL
Neutral
413
-
2,984
2,240
2,670
14.6
15.0
17.0
22.0
24.3
18.8
2.0
1.9
0.1
0.1
1.6
1.3
Interglobe Aviation
Neutral
1,225
-
44,312
22,570
27,955
14.2
15.0
63.6
81.8
19.3
15.0
10.1
8.6
0.5
0.6
1.6
1.2
Jyothy Laboratories
Neutral
397
-
7,212
1,781
2,044
14.1
15.0
9.4
10.5
42.5
37.8
9.0
8.5
0.2
0.2
4.3
3.7
Linc Pen & Plastics
Neutral
248
-
367
420
462
9.3
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
839
-
1,012
542
642
20.1
21.0
41.6
56.8
20.2
14.8
2.8
2.4
0.1
0.2
2.3
2.0
Mirza International
Neutral
163
-
1,964
1,148
1,285
18.0
18.0
8.0
9.4
20.3
17.5
3.4
2.8
16.3
16.1
1.9
1.6
Navkar Corporation
Buy
195
265
2,779
561
617
41.5
41.5
11.5
12.7
16.9
15.3
1.8
1.6
10.5
10.4
5.6
4.9
Nilkamal
Neutral
1,600
-
2,388
2,317
2,525
11.4
11.1
96.0
105.0
16.7
15.2
2.8
2.5
0.2
0.2
1.0
0.9
Stock Watch
October 31, 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
270
-
2,273
1,987
2,379
7.6
9.0
12.4
18.3
21.8
14.8
3.1
2.7
8.2
13.2
1.3
1.1
Radico Khaitan
Neutral
215
-
2,859
1,811
1,992
13.2
13.2
8.1
8.8
26.5
24.4
2.7
2.9
10.1
12.0
1.9
1.7
Relaxo Footwears
Neutral
552
-
6,635
1,981
2,310
13.7
14.5
12.0
15.5
46.0
35.6
9.0
7.3
0.2
0.2
3.4
2.9
Siyaram Silk Mills
Accumulate
594
650
2,785
1,769
1,981
12.7
12.7
22.6
26.2
26.3
22.7
4.1
3.5
15.5
15.5
1.8
1.6
Styrolution ABS India* Neutral
976
-
1,717
1,800
1,980
8.0
8.1
42.0
46.2
23.3
21.1
2.6
2.3
0.1
0.1
1.1
1.0
Surya Roshni
Neutral
377
-
1,651
4,870
5,320
7.7
7.8
22.8
28.1
16.6
13.4
2.2
1.9
0.1
0.1
0.6
0.5
TVS Srichakra
Neutral
3,202
-
2,452
2,729
2,893
12.7
12.5
248.5
265.0
12.9
12.1
3.7
3.0
0.3
0.3
0.9
0.8
Visaka Industries
Neutral
670
-
1,064
1,104
1,214
12.1
12.6
31.0
37.9
21.6
17.7
2.6
2.4
0.1
0.1
1.2
1.1
VIP Industries
Neutral
293
-
4,136
1,450
1,693
10.4
10.5
6.5
7.8
44.7
37.5
9.5
8.3
21.1
22.1
2.8
2.4
Navin Fluorine
Neutral
742
-
3,659
945
1,154
22.4
22.6
28.7
34.8
25.9
21.4
4.3
3.7
-
-
3.4
2.7
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 30, 2017
Market Outlook
October 31, 2017
Research Team Tel: 022 - 39357800
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