Market Outlook

September 05, 2017

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

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

BSE Sensex

(0.6)

(190)

31,702

US market were closed due to a Public holiday.

Nifty

(0.6)

(62)

9,913

UK stocks closed down reacting to the news of the North Korean nuclear test and the

Mid Cap

(0.7)

(106)

15,580

corresponding rising tensions. Mining stocks gained during the session, with

Small Cap

(0.6)

(100)

16,030

Fresnillo and Randgold Resources up 2.9% and 2% respectively. Gold prices rallied

to almost their year high as investors moved towards safe haven assets due to rising

Bankex

(0.8)

(215)

27,410

global tensions.

Global Indices

Chg (%)

(Pts)

(Close)

Indian markets corrected on news of the North Korean nuclear test. Almost all

indices closed lower for the session. The biggest correction was seen in the IT index,

Dow Jones

0.2

139

21,988

which closed down 1 percent. The auto index also reversed some of Friday’s gains

Nasdaq

0.1

6,435

to close down 0.8 percent. The only sectoral index to close positive was the metal

index, which closed up 0.26 percent.

FTSE

(0.4)

(27)

7,411

Nikkei

(0.9)

(183)

19,508

News Analysis

Hang Seng

(0.8)

(213)

27,740

 Parle and Manpasand Beverages announce partnership

Shanghai Com

0.4

3,380

 Ashok Leyland launches 'DOST +' to support LCV business

Detailed analysis is on Pg2

Advances / Declines

BSE

NSE

Advances

1,993

1,581

Investor’s Ready Reckoner

Declines

1,692

1,126

Key Domestic & Global Indicators

Unchanged

160

Stock Watch: Latest investment recommendations on 150+ stocks

Refer Pg7 onwards

Volumes (` Cr)

Top Picks

BSE

3,397

CMP

Target

Upside

Company

Sector

Rating

NSE

24,830

(`)

(%)

Blue Star

Capital Goods

Accumulate

754

760

0.8

Dewan Housing FinanceFinancials

Accumulate

521

545

4.6

#Net Inflows (` Cr)

Net

Mtd

Ytd

Mahindra Lifespace

Real Estate

Buy

448

522

16.4

FII

(5(745)

(2,2(745)

4146,54

Navkar Corporation

Others

Buy

199

265

33.4

MFs

8566

417,222

1468,16

KEI Industries

Capital Goods

Accumulate

256

290

13.3

More Top Picks on Pg5

Top Gainers

Price (`)

Chg (%)

Key Upcoming Events

Bomdyeing

135

10.0

Consensus

Date

Region

Event Description

Reading

Expectations

Tv18Brdcst

7.8

Sep 05, 2017 Germany PMI Services

53.40

Raymond

858

5.7

Sep 07, 2017 US

Initial Jobless claims

236.00

242.00

Srtransfin

1,074

5.3

Sep 07, 2017 Euro Zone ECB announces interest rates

Suntv

807

5.1

Sep 07, 2017 Euro Zone Euro-Zone GDP s.a. (QoQ)

0.60

Sep 08, 2017 India

Imports YoY%

15.40

More Events on Pg7

Top Losers

Price (`)

Chg (%)

Adanipower

231

(5.2)

Justdial*

381

(4.6)

Relcapital

820

(4.4)

Ioc

430

(4.2)

Adanient

131

(4.1)

#as on 04^th Sep, 2017

www.angelbroking.com

Market Outlook

September 05, 2017

News Analysis

Parle and Manpasand Beverages announce partnership

Parle Products and Manpasand Beverages announced an exclusive tie-up for

distribution network sharing and cross-promotion of their brands. Under the

partnership, Manpasand Beverages will have access to Parle's 4.5 mln outlets for

its flagship brand 'Mango Sip'.

Manpasand Beverages has introduced a new packaging called as - 'Mango Sip

Gold'- for this partnership. Under the partnership, Parle biscuit packs and wafers

will be offered along with Mango Sip's products.

Currently, a pilot programme (involving two lakh outlets) is underway in eastern

region of the country. Under this tie-up, both companies will cross-promote their

brands and aim to achieve a significant market share in snacks and biscuits and

the beverage industry.

Ashok Leyland launches 'DOST +' to support LCV business

Ashok Leyland announced the launch of 'Dost +', a light commercial vehicle (LCV),

which will be launched in a phased manner starting with Telangana.

This new LCV targets the upper-end of the small commercial vehicle space in the

2-3.5 tonne segment. While the medium to heavy commercial vehicle market

undergoes periodic cycles of growth and slowdown, LCVs can help hedge against

such volatility as this segment has stable growth.

Ashok Leyland currently enjoys a 40 percent market share in the LCV segment due

to existing DOST and Partner models. The implementation of Goods and Services

Tax (GST) would give a boost to higher tonnage LCVs, as these vehicles are

suitable for the hub and spoke distribution channels.

Economic and Political News

 Rainfall deficit narrowed to 3 % last week: Morgan Stanley

 Private traders import 11,400 tonnes onion to boost domestic supply

 Odisha raises fresh demand notices to 152 miners guilty of overproduction

Corporate News

 ONGC seeks shareholders' approval to raise `25,000cr

 IOCL to complete Paradip-Durgapur LPG pipeline by March 2018

 JBM Auto Q1FY18 net profit up 5% YoY to`19.45cr

www.angelbroking.com

Market Outlook

September 05, 2017

Top Picks

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

Strong growth in domestic business due to its leadership

in acute therapeutic segment. Alkem expects to launch

Alkem Laboratories

21,538

1,801

2,161

20.0

more products in USA, which bodes for its international

business.

We expect the company would report strong profitability

Asian Granito

1,370

455

480

5.4

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

7,223

754

760

0.8

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

16,331

521

545

4.6

presence in tier-II & III cities where the growth

opportunity is immense.

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

Karur Vysya Bank

8,787

145

160

10.0

Lower credit cost will help in strong bottom-line growth.

Increasing share of CASA will help in NIM improvement.

High order book execution in EPC segment, rising B2C

KEI Industries

1,991

256

290

13.3

sales and higher exports to boost the revenues and

profitability

Speedier execution and speedier sales, strong revenue

Mahindra Lifespace

2,301

448

522

16.4

visibility in short-to-long run, attractive valuations

Expected to benefit from the lower capex requirement

Music Broadcast

2,105

369

434

17.6

and 15 year long radio broadcast licensing.

Massive capacity expansion along with rail advantage at

Navkar Corporation

2,834

199

265

33.4

ICD as well CFS augurs well for the company

Strong brands and distribution network would boost

Siyaram Silk Mills

2,097

2,237

2,500

11.8

growth going ahead. Stock currently trades at an

inexpensive valuation.

Market leadership in Hindi news genre and no.

viewership ranking in English news genre, exit from the

TV Today Network

1,536

257

344

33.6

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

2,35,736

7,804

8,544

9.5

plant will also enable higher operating leverage which

will be margin accretive.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

September 05, 2017

Key Upcoming Events

Global economic events release calendar

Bloomberg Data

Date

Time

Country

Event Description

Unit

Period

Last Reported

Estimated

Sep 05, 2017

1:25 PMGermany

PMI Services

Value

Aug F

53.40

Sep 07, 2017

6:00 PMUS

Initial Jobless claims

Thousands

Sep 2

236.00

242.00

5:15 PMEuro Zone

ECB announces interest rates

Sep 7

2:30 PMEuro Zone

Euro-Zone GDP s.a. (QoQ)

% Change

2Q F

0.60

Sep 08, 2017

India

Imports YoY%

% Change

Aug

15.40

China

Exports YoY%

% Change

Aug

7.20

6.00

India

Exports YoY%

% Change

Aug

3.94

2:00 PMUK

Industrial Production (YoY)

% Change

Jul

0.30

Sep 09, 2017

7:00 AMChina

Consumer Price Index (YoY)

% Change

Aug

1.40

1.60

Sep 12, 2017

2:00 PMUK

CPI (YoY)

% Change

Aug

2.60

5:30 PMIndia

Industrial Production YoY

% Change

Jul

(0.10)

Sep 13, 2017

2:00 PMUK

Jobless claims change

% Change

Aug

(4.20)

Producer Price Index (mom)

% Change

Aug

(0.20)

Sep 14, 2017

7:30 AMChina

Industrial Production (YoY)

% Change

Aug

6.40

6.50

12:00 PMIndia

Monthly Wholesale Prices YoY%

% Change

Aug

1.88

6:00 PMUS

Consumer price index (mom)

% Change

Aug

0.10

0.30

4:30 PMUK

BOE Announces rates

% Ratio

Sep 14

0.25

Sep 15, 2017

2:30 PMEuro Zone

Euro-Zone CPI (YoY)

Aug F

1.50

Sep 18, 2017

6:45 PMUS

Industrial Production

Aug

0.19

0.20

Sep 19, 2017

6:00 PMUS

Housing Starts

Thousands

Aug

1,155.00

6:00 PMUS

Building permits

Thousands

Aug

1,230.00

Sep 20, 2017

7:30 PMUS

Existing home sales

Million

Aug

5.44

11:30 PMUS

FOMC rate decision

Sep 20

1.25

Sep 21, 2017

7:30 PMEuro Zone

Euro-Zone Consumer Confidence

Value

Sep A

(1.50)

Sep 22, 2017

1:00 PMGermany

PMI Manufacturing

Value

Sep P

59.30

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

September 05, 2017

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

5.7

10.0

6.0

9.1

8.8

4.9

9.0

5.0

8.0

7.9

7.6

7.5

3.8

8.0

7.3

7.2

4.0

7.0

3.0

2.6

2.8

7.0

6.1

3.0

5.7

1.9

6.0

2.0

5.0

1.0

4.0

3.0

(0.1)

(1.0)

Source: CSO, Angel Research

Source: MOSPI, Angel Research

Exhibit 3: Monthly CPI inflation trends

Exhibit 4: Manufacturing and services PMI

56.0

Mfg. PMI

Services PMI

(%)

6.0

54.0

5.1

52.0

5.0

4.3

4.2

3.9

50.0

3.6

3.7

4.0

3.4

3.2

3.0

48.0

3.0

2.4

2.2

46.0

2.0

1.5

44.0

1.0

42.0

40.0

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

Source: MOSPI, Angel Research

Exhibit 5: Exports and imports growth trends

Exhibit 6: Key policy rates

(%)

Exports yoy growth

Imports yoy growth

(%)

Repo rate

Reverse Repo rate

CRR

60.0

6.50

50.0

6.00

40.0

5.50

30.0

5.00

20.0

4.50

10.0

4.00

0.0

(10.0)

3.50

(20.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Market Outlook

September 05, 2017

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

71,923

7.1

15.1

22.8

Russia

Micex

2,011

2.0

6.7

(1.8)

India

Nifty

9,974

(2.0)

3.1

15.2

China

Shanghai Composite

3,367

3.3

8.9

9.4

South Africa

Top 40

49,996

2.1

7.1

7.9

Mexico

Mexbol

51,081

(0.2)

3.0

6.9

Indonesia

LQ45

977

0.0

0.8

2.6

Malaysia

KLCI

1,773

0.7

0.5

5.4

Thailand

SET 50

1,034

2.9

4.7

5.2

USA

Dow Jones

21,988

(0.1)

3.7

18.9

FTSE

7,439

(0.0)

(2.1)

9.2

Japan

Nikkei

19,691

(2.3)

(0.9)

18.2

Germany

DAX

12,143

(0.4)

(4.6)

13.4

France

CAC

5,123

(0.3)

(3.0)

15.2

Source: Bloomberg, Angel Research

www.angelbroking.com

Stock Watch

September 05, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Agri / Agri Chemical

Rallis

Reduce

223

209

4,331

1,873

2,099

15.0

9.5

10.5

23.4

21.2

3.6

3.2

15.8

16.0

2.2

2.0

United Phosphorus

Neutral

817

41,511

18,922

21,949

18.0

18.5

36.2

45.6

22.6

17.9

4.7

3.9

22.7

23.8

2.4

2.0

Auto & Auto Ancillary

Ashok Leyland

Accumulate

113

127

33,114

23,339

27,240

10.1

10.8

4.7

6.2

24.3

18.2

4.9

4.3

20.0

23.6

1.4

1.2

Bajaj Auto

Accumulate

2,913

3,151

84,304

23,936

27,955

19.5

20.1

142.7

167.3

20.4

17.4

4.4

4.0

21.8

22.8

3.1

2.6

Bharat Forge

Neutral

1,124

26,158

7,637

8,755

21.7

23.2

36.1

47.3

31.1

23.8

5.6

4.8

18.5

20.8

3.3

2.8

Eicher Motors

Neutral

31,754

86,440

19,043

22,837

19.5

19.9

835.4

1,019.0

38.0

31.2

14.2

10.9

40.9

37.8

4.4

3.6

Gabriel India

Neutral

175

2,512

1,782

2,033

9.7

10.2

7.1

8.9

24.6

19.8

5.0

4.2

21.0

22.2

1.4

1.2

Hero Motocorp

Neutral

3,974

79,352

32,239

36,878

16.0

15.6

184.4

206.5

21.6

19.3

6.8

5.9

31.3

30.7

2.2

1.9

Jamna Auto Industries Neutral

258

2,057

1,441

1,662

14.4

14.8

13.9

17.6

18.6

14.7

5.1

4.1

30.0

31.0

1.4

1.2

Mahindra and Mahindra Neutral

1,328

82,490

46,971

53,816

13.6

14.0

67.7

79.8

19.6

16.6

2.8

2.5

15.0

15.9

1.6

1.4

Maruti

Accumulate

7,804

8,544

235,736

81,825

101,245

15.0

283.5

356.0

27.5

21.9

6.0

4.9

21.9

22.4

2.6

2.0

Minda Industries

Neutral

878

7,585

4,328

5,084

11.0

11.9

27.3

36.4

32.2

24.1

6.8

5.3

23.1

25.6

1.8

1.6

Motherson Sumi

Neutral

313

65,986

55,937

64,445

10.8

11.4

16.9

21.1

18.6

14.9

4.2

25.2

25.4

1.2

1.0

Tata Motors

Neutral

384

110,990

303,167

343,649

11.8

13.8

33.1

54.7

11.6

7.0

1.9

1.5

16.9

23.0

0.4

0.3

TVS Motor

Neutral

614

29,161

13,992

16,216

9.0

9.4

17.1

20.3

36.0

30.2

9.6

7.4

29.7

27.7

2.0

1.7

Amara Raja Batteries

Accumulate

786

858

13,431

6,140

7,122

14.3

15.6

29.3

39.0

26.8

20.2

4.6

3.8

17.1

19.0

2.2

1.9

Exide Industries

Neutral

203

17,251

8,689

9,854

15.1

15.2

9.7

11.0

21.0

18.5

3.7

3.3

15.7

16.1

1.7

1.5

Apollo Tyres

Neutral

251

12,759

15,739

17,326

13.3

14.6

20.4

26.7

12.3

9.4

1.5

1.3

20.4

26.7

1.0

0.9

Ceat

Neutral

1,706

6,900

6,661

7,717

11.1

14.2

116.2

178.2

14.7

9.6

2.6

2.1

15.2

21.3

1.1

1.0

JK Tyres

Neutral

147

3,340

8,318

9,239

16.2

16.4

21.0

27.5

7.0

5.4

1.4

1.1

19.1

20.4

0.9

0.7

Swaraj Engines

Neutral

2,098

2,606

788

889

16.4

16.5

71.6

81.0

29.3

25.9

8.5

7.8

29.6

31.0

3.0

2.6

Subros

Neutral

242

1,450

1,855

2,135

11.6

11.8

10.3

14.7

23.6

16.5

3.6

3.1

15.8

19.1

1.0

0.9

Capital Goods

BEML

Neutral

1,855

7,723

4,286

5,194

7.1

8.2

42.9

58.1

43.2

31.9

3.6

3.2

7.6

8.7

1.9

1.5

Bharat Electronics

Neutral

192

42,819

10,258

12,470

19.6

19.5

7.3

8.6

26.3

22.3

0.5

20.4

21.9

3.7

3.0

Voltas

Neutral

519

17,185

6,778

8,004

9.6

11.0

17.1

22.4

30.4

23.2

7.2

6.4

17.7

19.8

2.2

1.9

BHEL

Neutral

131

32,051

33,200

39,167

6.8

9.5

6.2

11.2

21.1

11.7

1.0

0.9

4.6

8.0

0.5

0.4

Blue Star

Neutral

754

7,223

5,101

5,997

6.0

7.0

17.9

26.6

42.1

28.4

9.0

8.2

21.9

29.0

1.4

1.2

CG Power and Industrial

Neutral

5,080

6,555

7,292

7.5

0.8

8,105.0

101.3

1.3

0.1

1.2

0.9

0.8

Solutions

Greaves Cotton

Neutral

157

3,832

1,778

1,993

14.7

15.1

8.1

9.1

19.4

17.2

4.4

4.1

21.8

23.6

1.9

1.7

www.angelbroking.com

Stock Watch

September 05, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Capital Goods

KEC International

Neutral

306

7,864

9,779

11,113

9.4

9.8

14.2

18.2

21.5

16.8

4.1

3.4

21.1

22.1

1.1

0.9

KEI Industries

Accumulate

256

290

1,991

3,001

3,391

10.0

13.0

16.1

19.7

15.9

3.6

3.0

18.2

18.7

0.8

0.7

Thermax

Neutral

881

10,502

4,125

4,747

10.3

10.8

26.7

31.5

33.0

28.0

3.7

3.4

11.2

12.0

2.3

2.0

VATech Wabag

Accumulate

611

681

3,334

3,867

4,126

9.6

10.0

34.9

39.8

17.5

15.4

2.9

2.5

17.7

17.5

0.9

0.8

Cement

ACC

Neutral

1,774

33,313

12,255

13,350

13.5

14.3

58.0

66.2

30.6

26.8

3.6

3.4

11.5

12.2

2.7

2.5

Ambuja Cements

Neutral

276

54,893

10,250

11,450

17.5

19.0

7.2

8.3

38.4

33.3

2.8

2.6

7.0

7.8

5.1

4.5

India Cements

Neutral

177

5,453

6,135

6,750

14.8

15.2

8.5

11.5

20.8

15.4

1.0

4.8

6.2

1.2

1.1

JK Cement

Neutral

1,003

7,009

4,150

4,775

19.2

20.0

49.0

63.5

20.5

15.8

3.2

2.8

17.0

18.5

2.1

1.8

J K Lakshmi Cement

Neutral

431

5,069

3,422

3,757

15.5

17.0

13.5

23.2

31.9

18.6

3.3

2.9

10.8

15.5

1.9

1.6

Orient Cement

Neutral

157

3,212

2,215

3,233

16.8

17.0

5.9

6.9

26.6

22.7

2.0

1.9

10.8

10.1

2.4

1.6

UltraTech Cement

Neutral

3,988

109,476

28,250

35,150

20.2

23.5

77.5

122.2

51.5

32.6

4.3

3.9

9.6

14.8

4.3

3.5

Construction

KNR Constructions

Neutral

208

2,923

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

1,130

158,255

95,787

109,476

10.2

11.6

44.5

50.8

25.4

22.3

3.2

2.9

12.9

13.1

2.2

1.9

Gujarat Pipavav Port

Neutral

130

6,287

739

842

61.6

62.7

5.1

6.2

25.5

21.2

3.2

3.1

12.7

14.9

8.0

6.9

PNC Infratech

Neutral

137

3,504

2,040

2,935

13.0

6.4

9.0

21.3

15.2

0.6

0.5

9.7

12.2

1.7

1.2

Simplex Infra

Neutral

476

2,356

6,012

6,619

11.6

11.7

21.1

31.0

22.6

15.4

1.6

1.4

6.5

8.6

0.9

0.8

Sadbhav Engineering

Neutral

286

4,904

3,823

4,426

10.7

10.8

10.3

11.8

27.8

24.2

3.3

2.9

10.1

10.5

1.6

1.4

NBCC

Neutral

207

18,585

9,099

12,706

6.4

7.3

9.6

28.4

21.6

1.3

1.0

27.5

30.5

1.9

1.4

MEP Infra

Neutral

116

1,882

2,403

2,910

18.3

16.8

2.4

6.1

49.2

19.1

18.7

12.6

35.2

55.8

1.9

1.6

SIPL

Neutral

100

3,522

2,060

2,390

46.8

47.7

(5.8)

(3.1)

3.8

4.3

(14.2)

(2.3)

6.5

6.1

Engineers India

Neutral

155

10,435

1,795

2,611

21.1

22.4

5.9

8.1

26.3

19.1

1.9

1.8

12.9

16.1

4.2

2.7

Financials

Axis Bank

Buy

502

580

120,432

32,558

35,843

3.5

3.2

27.8

41.0

18.1

12.2

2.0

1.7

11.4

14.9

Bank of Baroda

Neutral

137

31,509

22,533

26,079

2.4

12.0

20.9

11.4

6.5

0.7

6.6

11.0

Canara Bank

Neutral

336

20,039

17,925

20,235

2.0

2.1

18.5

36.5

18.1

9.2

0.7

3.4

6.2

Can Fin Homes

Neutral

2,820

7,508

586

741

3.5

107.8

141.0

26.2

20.0

5.7

4.6

24.1

25.6

Cholamandalam Inv. &

Accumulate

1,135

1,230

17,742

2,826

3,307

6.3

53.7

64.6

21.2

17.6

3.6

3.1

18.3

18.9

Fin. Co.

Dewan Housing Finance Neutral

521

16,331

2,676

3,383

2.4

2.7

37.4

49.7

13.9

10.5

1.8

1.6

13.8

16.2

Equitas Holdings

Buy

170

235

5,744

1,125

1,380

9.6

9.8

1.5

6.0

113.0

28.3

2.6

2.4

8.2

Federal Bank

Accumulate

112

125

21,711

4,896

5,930

2.8

3.1

5.4

7.6

20.8

14.8

1.8

1.6

8.5

11.0

www.angelbroking.com

Stock Watch

September 05, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Financials

HDFC Bank

Neutral

1,752

451,229

55,236

63,253

4.5

4.4

68.9

82.4

25.5

21.3

4.4

3.7

18.7

18.5

ICICI Bank

Accumulate

297

315

190,609

42,361

51,378

3.6

3.9

18.4

25.7

16.2

11.6

1.8

1.7

11.3

15.0

Karur Vysya Bank

Accumulate

145

160

8,787

3,289

3,630

3.7

3.9

10.8

14.1

13.4

10.3

1.6

1.4

12.5

14.7

LIC Housing Finance

Neutral

677

34,158

4,895

6,332

3.4

3.7

50.7

66.8

13.3

10.1

2.7

2.2

21.7

23.8

Punjab Natl.Bank

Neutral

143

30,366

23,708

25,758

2.1

5.9

16.4

24.3

8.7

0.7

3.0

8.3

RBL Bank

Neutral

534

20,257

2,309

2,888

2.6

2.5

16.4

19.1

32.6

28.0

4.1

3.6

13.3

13.8

Repco Home Finance

Buy

649

825

4,061

496

597

4.4

4.2

38.5

48.7

16.9

13.3

3.0

2.5

19.6

20.6

South Ind.Bank

Neutral

5,188

3,195

3,567

3.0

3.1

3.0

3.8

9.5

7.5

1.0

0.8

10.5

11.9

St Bk of India

Neutral

278

239,798

105,827

121,056

2.4

2.5

16.1

25.6

17.3

10.9

1.4

1.2

6.6

9.9

Union Bank

Neutral

136

9,356

14,650

16,225

2.3

23.1

32.5

5.9

4.2

0.5

0.4

7.1

9.2

Yes Bank

Neutral

1,761

80,603

11,088

13,138

3.0

2.9

84.0

99.3

21.0

17.7

3.2

2.8

16.3

16.8

FMCG

Akzo Nobel India

Neutral

1,832

8,786

3,164

3,607

13.8

13.7

58.6

67.9

31.3

27.0

7.7

6.8

24.5

25.1

2.6

2.3

Asian Paints

Neutral

1,197

114,768

17,603

20,615

18.6

2,128.9

2,543.3

0.6

0.5

11.9

10.0

28.0

28.9

6.3

5.3

Britannia

Neutral

4,216

50,617

9,690

11,278

14.8

15.4

84.0

101.0

50.2

41.7

18.3

14.5

40.6

39.0

5.2

4.5

Colgate

Neutral

1,110

30,201

4,420

5,074

24.9

25.3

28.6

32.8

38.8

33.9

15.3

12.4

43.8

40.5

6.6

5.7

Dabur India

Neutral

310

54,607

8,346

9,344

19.6

19.9

7.8

9.0

39.7

34.4

8.0

7.2

25.2

24.8

6.1

5.4

GlaxoSmith Con*

Neutral

5,320

22,375

5,072

5,760

18.2

18.4

176.3

199.2

30.2

26.7

6.4

5.8

21.2

21.7

3.7

3.2

Godrej Consumer

Neutral

920

62,689

10,171

11,682

20.8

21.5

21.7

27.1

42.4

34.0

9.5

8.2

22.3

23.4

6.3

5.4

HUL

Neutral

1,197

259,076

37,077

41,508

20.3

21.8

5,189.9

6,318.5

0.2

36.5

31.2

74.8

82.0

6.8

6.1

ITC

Neutral

283

344,094

44,588

49,853

37.0

37.3

9.6

11.0

29.4

25.7

7.2

6.9

25.1

27.3

7.2

6.4

Marico

Neutral

315

40,650

6,788

7,766

18.5

19.2

7.1

8.5

44.4

37.1

15.5

13.3

36.9

38.0

5.8

5.1

Nestle*

Neutral

6,859

66,129

10,083

11,182

20.0

20.9

119.7

141.3

57.3

48.5

201.9

184.6

36.7

39.8

6.2

5.6

Tata Global

Neutral

193

12,190

7,121

7,641

11.9

12.3

6.9

8.0

28.0

24.1

1.9

1.8

6.8

7.2

1.5

1.4

Procter & Gamble

Neutral

8,413

27,309

3,034

3,579

27.1

27.7

167.7

198.8

50.2

42.3

13.5

11.6

28.8

29.5

8.4

7.1

Hygiene

HCL Tech^

Buy

858

1,014

122,464

52,342

57,053

20.9

62.8

67.6

13.7

12.7

3.1

2.6

22.4

20.6

2.0

1.7

Infosys

Buy

901

1,179

207,026

73,963

80,619

26.0

64.4

69.3

14.0

13.0

2.8

2.6

19.7

19.6

2.2

2.0

TCS

Accumulate

2,458

2,651

484,292

127,403

138,870

27.6

144.5

156.0

17.0

15.8

5.1

4.7

29.7

29.8

3.5

3.1

Tech Mahindra

Buy

416

533

40,570

31,015

33,496

15.0

35.6

38.1

11.7

10.9

2.0

1.9

17.0

16.3

1.1

0.9

Wipro

Neutral

297

144,704

58,536

61,858

20.3

18.2

19.1

16.3

15.6

2.5

2.2

14.6

13.4

2.4

2.3

www.angelbroking.com

Stock Watch

September 05, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Media

D B Corp

Neutral

376

6,910

2,404

2,625

30.5

31.5

23.7

26.9

15.9

14.0

3.7

3.2

23.5

22.8

2.7

2.5

HT Media

Neutral

2,248

2,589

2,830

15.1

15.4

8.3

10.9

11.6

8.9

0.9

8.4

10.4

0.4

0.3

Jagran Prakashan

Buy

179

225

5,860

2,541

2,835

28.5

28.7

12.7

14.1

12.7

2.9

2.5

21.3

21.4

2.2

1.9

Sun TV Network

Neutral

807

31,797

3,238

3,789

51.9

55.1

30.9

38.0

26.1

21.2

7.5

6.5

30.0

31.0

9.3

7.9

Hindustan Media

Neutral

268

1,968

1,002

1,074

23.3

23.5

29.2

33.8

9.2

7.9

1.4

1.2

15.6

15.4

1.0

0.7

Ventures

TV Today Network

Buy

257

344

1,536

667

727

27.7

18.6

20.1

13.8

12.8

2.2

15.6

17.3

1.8

1.7

Music Broadcast Limited Buy

369

434

2,105

271

317

91.0

109.0

6.0

10.0

61.5

36.9

3.8

3.5

6.5

9.3

7.4

6.1

Metals & Mining

Coal India

Neutral

246

152,951

82,301

91,235

17.0

18.0

17.1

20.5

14.4

12.0

2.7

2.5

45.0

55.0

1.5

1.4

Hind. Zinc

Neutral

299

126,295

22,108

24,555

57.0

58.0

22.1

26.3

13.5

11.4

4.4

3.6

32.0

35.0

4.7

3.9

Hindalco

Neutral

243

54,472

102,350

105,355

13.5

14.5

21.5

24.5

11.3

9.9

1.6

1.3

15.0

15.2

1.1

JSW Steel

Neutral

255

61,603

64,500

68,245

21.1

21.5

20.1

21.2

12.7

12.0

2.3

2.0

1.7

1.6

NMDC

Neutral

135

42,554

10,209

11,450

47.0

48.0

11.1

12.1

11.1

1.7

1.6

3.7

3.3

SAIL

Neutral

25,669

54,100

63,555

3.0

10.0

(10.0)

1.5

41.4

0.8

1.5

1.3

Vedanta

Neutral

316

117,389

81,206

87,345

28.0

29.0

26.5

33.5

11.9

9.4

2.7

2.3

2.2

1.9

Tata Steel

Neutral

646

62,750

121,445

126,500

16.2

17.2

65.4

81.3

9.9

8.0

1.6

1.3

1.0

0.9

Oil & Gas

GAIL

Neutral

380

64,202

53,115

52,344

14.2

15.3

30.0

31.1

12.7

12.2

1.6

1.5

0.9

ONGC

Neutral

162

207,385

83,111

84,934

44.2

44.9

16.4

16.9

9.9

9.6

1.2

1.1

2.4

2.3

Indian Oil Corp

Neutral

429

208,343

396,116

432,560

8.5

8.8

40.1

42.2

10.7

10.2

1.9

1.7

0.7

0.6

Reliance Industries

Neutral

1,611

523,995

257,711

267,438

17.0

18.2

89.1

89.5

18.1

18.0

1.7

1.6

1.7

1.6

Pharmaceuticals

Alembic Pharma

Buy

513

600

9,670

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

Buy

1,801

2,161

21,538

6,901

7,850

18.4

19.1

85.0

100.5

21.2

17.9

4.3

3.6

20.2

20.1

3.1

2.7

Aurobindo Pharma

Accumulate

749

823

43,909

17,086

19,478

22.1

22.0

44.7

51.4

16.8

14.6

3.7

3.0

24.7

22.7

2.7

2.3

Aventis*

Neutral

4,029

9,279

2,508

2,862

16.8

139.9

153.8

28.8

26.2

4.2

3.4

23.5

25.8

3.3

2.7

Cadila Healthcare

Sell

506

426

51,847

11,584

13,228

20.3

20.4

18.7

21.3

27.1

23.8

6.0

5.0

24.6

22.9

4.3

3.7

Cipla

Sell

562

458

45,219

16,619

19,437

15.4

16.2

19.7

24.3

28.5

23.1

3.2

2.9

12.0

13.2

2.9

2.4

Dr Reddy's

Neutral

2,189

36,286

15,844

17,973

17.6

18.2

91.7

111.0

23.9

19.7

2.7

2.5

11.9

13.0

2.5

2.2

GSK Pharma*

Neutral

2,423

20,525

3,260

3,651

15.0

18.0

46.1

58.6

52.6

41.4

10.8

11.1

20.0

26.5

6.2

5.6

Indoco Remedies

Sell

194

153

1,786

1,154

1,310

14.9

11.3

12.7

17.2

15.3

2.4

2.2

15.0

1.7

1.4

Ipca labs

Buy

417

540

5,257

3,593

4,022

14.5

15.5

19.4

25.2

21.5

16.5

2.0

1.8

9.5

11.2

1.5

1.4

www.angelbroking.com

Stock Watch

September 05, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Pharmaceuticals

Lupin

Buy

996

1,467

44,990

18,657

21,289

21.3

23.3

52.8

66.7

18.9

14.9

2.9

2.4

16.3

17.5

2.4

2.0

Natco Pharma

Accumulate

704

796

12,263

1,836

1,946

31.8

28.9

22.1

20.6

31.8

34.1

6.4

5.7

20.1

16.7

6.5

6.1

Sun Pharma

Accumulate

501

558

120,094

32,899

36,451

26.9

25.4

31.6

32.3

15.8

15.5

2.8

2.4

18.7

18.8

3.3

2.8

Syngene International

Buy

447

557

8,935

1,402

1,823

32.8

36.0

15.9

20.7

28.1

21.6

5.3

4.3

18.7

20.0

6.3

4.9

Power

Tata Power

Neutral

21,219

32,547

33,806

20.5

4.7

5.4

16.7

14.7

1.6

1.4

10.5

1.6

NTPC

Neutral

168

138,441

86,070

101,246

28.3

30.7

12.9

16.2

13.0

10.4

1.3

1.2

10.6

12.4

3.0

2.7

Power Grid

Neutral

217

113,473

29,183

32,946

89.7

90.0

18.0

20.8

12.1

10.4

2.0

1.8

17.7

18.2

7.8

7.3

Real Estate

Prestige Estate

Neutral

265

9,934

4,607

5,146

21.0

22.2

7.9

9.8

33.5

27.0

2.1

1.9

10.3

12.0

3.3

3.0

MLIFE

Buy

448

522

2,301

487

590

12.3

17.8

21.0

31.2

21.4

14.4

1.1

5.2

7.4

3.4

2.8

Telecom

Bharti Airtel

Neutral

416

166,232

97,903

105,233

36.0

36.3

9.3

11.1

44.7

37.6

2.2

2.0

5.0

5.6

2.7

2.4

Idea Cellular

Neutral

31,396

35,012

37,689

27.1

27.7

(4.4)

(2.7)

1.4

(6.8)

(4.6)

2.2

2.0

zOthers

Abbott India

Neutral

4,206

8,937

3,244

3,723

14.9

16.1

167.5

209.4

25.1

20.1

5.5

4.6

23.7

24.8

2.4

2.0

Asian Granito

Accumulate

455

480

1,370

1,169

1,286

12.5

16.0

19.7

28.5

23.1

3.0

2.7

10.7

11.6

1.4

1.2

Bajaj Electricals

Accumulate

345

395

3,496

4,646

5,301

6.7

7.6

16.1

22.3

21.4

15.5

3.5

3.0

16.4

19.2

0.7

Banco Products (India)

Neutral

216

1,548

1,530

1,695

13.2

12.7

19.0

20.0

11.4

10.8

1.8

1.6

0.2

0.9

102.3

Coffee Day Enterprises

Neutral

238

4,909

3,494

3,913

17.4

18.0

4.8

5.7

41.8

2.1

2.0

0.1

1.9

1.6

Ltd

Elecon Engineering

Neutral

562

171

201

15.0

16.2

36.0

43.0

1.4

1.2

0.1

2.7

2.3

Garware Wall Ropes

Neutral

926

2,026

928

1,003

15.2

39.4

43.2

23.5

21.5

3.9

3.3

16.5

15.4

2.1

1.8

Goodyear India*

Neutral

823

1,899

1,717

1,866

11.8

12.3

47.9

49.8

17.2

16.5

2.7

2.3

15.6

15.7

0.8

114.7

Hitachi

Neutral

1,998

5,432

2,355

2,715

10.3

10.8

49.0

60.9

40.8

32.8

9.5

7.5

0.2

2.3

2.0

HSIL

Neutral

379

2,741

2,240

2,670

14.6

15.0

17.0

22.0

22.3

17.2

1.8

1.7

0.1

1.4

1.2

Interglobe Aviation

Neutral

1,265

45,766

22,570

27,955

14.2

15.0

63.6

81.8

19.9

15.5

10.5

8.8

0.5

0.6

1.7

1.3

Jyothy Laboratories

Neutral

390

7,084

1,781

2,044

14.1

15.0

9.4

10.5

41.7

37.1

8.9

8.3

0.2

4.2

3.6

Linc Pen & Plastics

Neutral

241

356

420

462

9.3

15.3

17.1

15.8

14.1

2.7

2.8

16.9

19.5

0.9

0.8

M M Forgings

Neutral

605

730

542

642

20.1

21.0

41.6

56.8

14.5

10.7

2.0

1.7

0.1

0.2

1.8

1.6

Mirza International

Neutral

160

1,922

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

199

265

2,834

561

617

41.5

11.5

12.7

17.3

15.6

1.8

1.6

10.5

10.4

5.7

5.0

Nilkamal

Neutral

1,547

2,308

2,317

2,525

11.4

11.1

96.0

105.0

16.1

14.7

2.7

2.4

0.2

1.0

0.9

Parag Milk Foods

Neutral

248

2,090

1,987

2,379

7.6

9.0

12.4

18.3

20.0

13.6

2.8

2.5

8.2

13.2

1.2

1.0

www.angelbroking.com

Stock Watch

September 05, 2017

Company Name

Reco

CMP

Target Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E FY18E FY19E

zOthers

Radico Khaitan

Neutral

164

2,177

1,811

1,992

13.2

8.1

8.8

20.2

18.6

2.0

2.2

10.1

12.0

1.5

1.4

Relaxo Footwears

Neutral

512

6,155

1,981

2,310

13.7

14.5

12.0

15.5

42.7

33.1

8.3

6.7

0.2

3.2

2.7

Siyaram Silk Mills

Accumulate

2,237

2,500

2,097

1,769

1,981

12.7

113.1

131.1

19.8

17.1

3.1

2.6

15.5

1.4

1.2

Styrolution ABS India* Neutral

920

1,618

1,800

1,980

8.0

8.1

42.0

46.2

21.9

19.9

2.5

2.2

0.1

1.0

0.9

Surya Roshni

Neutral

315

1,380

4,870

5,320

7.7

7.8

22.8

28.1

13.8

11.2

1.8

1.6

0.1

0.5

0.4

TVS Srichakra

Neutral

3,290

2,519

2,729

2,893

12.7

12.5

248.5

265.0

13.2

12.4

3.8

3.1

0.3

0.9

Visaka Industries

Neutral

650

1,032

1,104

1,214

12.1

12.6

31.0

37.9

21.0

17.2

2.6

2.3

0.1

1.2

1.0

VIP Industries

Neutral

238

3,370

1,450

1,693

10.4

10.5

6.5

7.8

36.4

30.5

7.7

6.7

21.1

22.1

2.3

2.0

Navin Fluorine

Accumulate

663

730

3,267

945

1,154

22.4

22.6

28.7

34.8

23.1

19.1

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 04, 2017

www.angelbroking.com

Market Outlook

September 05, 2017

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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