Market Outlook

February 16, 2016

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian markets are expected to open positively tracking the SGX Nifty and its Asian

BSE Sensex

2.5

568

23,554

peers.

Nifty

2.6

182

7,163

US markets were closed on account of President’s day holiday.

Mid Cap

3.5

334

9,949

European shares continued the uptrend for the second consecutive day amid hopes

Small Cap

3.4

324

10,007

of stimulus from the ECB.

Bankex

3.6

573

16,428

Indian markets opened the weak firmly, rallying close to 3%. Key benchmark indices

jumped as firmness in the global stocks boosted the sentiment in the domestic

Global Indices

Chg (%)

(Pts)

(Close)

bourses.

Dow Jones

2.0

314

15,974

Nasdaq

1.7

4,338

News & Result Analysis

FTSE

2.0

117

5,824

 Make in India: Saab, Bharat Forge to form JV for air defence solutions

Detailed analysis on Pg2

Nikkei

7.2

1,070

16,023

Hang Seng

3.3

599

18,918

Investor’s Ready Reckoner

Shanghai Com

(0.6)

(17)

2,746

Key Domestic & Global Indicators

Stock Watch: Latest investment recommendations on 150+ stocks

Advances / Declines

BSE

NSE

Refer P4 onwards

Advances

2,004

493

Top Picks

Declines

670

1,076

CMP

Target

Upside

Company

Sector

Rating

Unchanged

115

(`)

(%)

Amara Raja Batteries Auto & Auto Ancillary

Buy

874

1,040

19.0

HCL Tech

Buy

826

1,038

25.7

Volumes (` Cr)

LIC Housing Finance Financials

Buy

428

592

38.2

BSE

3,032

Bharat Electronics

Capital Goods

Buy

1,161

1,414

21.8

NSE

18,107

Navkar Corporation Others

Buy

166

265

59.6

More Top Picks on Pg3

Net Inflows (` Cr)

Net

Mtd

Ytd

Key Upcoming Events

FII

(1,210)

(3,014)

(11,287)

Consensus

Date

Region

Event Description

MFs

504

780

77,647

Reading

Expectations

Feb 16 UK

CPI YoY (% Change)

0.20

0.30

Feb 17 US

Housing starts (Thousands)

1,149

1,170

Top Gainers

Price (`)

Chg (%)

Feb 17 US

Industrial Production (%)

(0.36)

0.35

Bankbaroda

140

22.0

Feb 18 US

Initial jobless claims (Thousands)

269

275

Vedl

18.3

6.(

Rtnpower

17.3

Ucobank

16.9

Sreinfra

16.1

Top Losers

Price (`)

Chg (%)

Aiaeng

738

(3.5)

Cholafin

697

(2.7)

Ajantpharm

1,279

(2.5)

Gspl

132

(2.2)

Bhartiartl

319

(2.0)

As on February 15, 2016

www.angelbroking.com

Market Outlook

February 16, 2016

Make in India: Saab, Bharat Forge to form JV for air defence

solutions

Swedish defence and security major Saab and Bharat Forge group have renewed

their commitment to manufacture air defence solutions in India. The two groups

had signed a strategic alliance in FY 2014 and today announced plans to form a

joint venture company to develop missile systems.

The joint venture will handle main part of production delivery of air defence

systems. The production in India will comprise of sub-systems and systems for

short-range surface to air missiles and very short-range air defence missile

systems, with the aim to transfer production and technology. To secure production

quality, orders of missile parts have already been issued to Kalyani Strategic

Systems Ltd — a Bharat Forge subsidiary involved in the project.

"The joint venture is already under preparation within both companies and will be

ready to launch soon," said Gorgen Johansson, head of Saab business area

dynamics.

Bharat Forge has identified defence as one of the key pillars for forging growth.

Under the “Make in India” initiative, Bharat Forge is tying up with global defence

players with a view to gain technology and harness its manufacturing prowess to

broaden the revenue profile. We currently have Buy rating on the stock.

Economic and Political News

 Govt committed to adequate coal supply to non-power sector: Anil Swarup

 Indian power and coal sector a $1 trillion investment opportunity by 2030:

Piyush Goyal

 RBI's Raghuram Rajan says not in favour of devaluing exchange rate

 India sees lower 2016 wheat harvest at 93.82 MT

Corporate News

 JSW eyes port asset acquisitions, to cut debt at its steel unit

 Vedanta, Odisha Govt tie up to commission aluminium park

 Dr Agarwal's Eye Hospital to invest `600 crore for expansion

 Biocon gets its first generics approval in the European Union

www.angelbroking.com

Market Outlook

February 16, 2016

Top Picks ★★★★★

Large Cap

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

To outpace battery industry growth due to better technological

Amara Raja Batteries

14,928

874

1,040

19.0

products leading to market share gains in both the automotive

OEM and replacement segments.

Earnings to grow strongly given the MHCV cyclical upturn.

Ashok Leyland

25,485

111

24.0

Focus on exports and LCV's provides additional growth

avenue.

Uptick in defense capex by government when coupled with

Bharat Electronics

27,871

1,161

1,414

21.8

BELs strong market positioning, indicate that good times are

ahead for BEL.

The stock is trading at attractive valuations and is factoring all

HCL Tech

116,339

826

1,038

25.7

the bad news.

Strong visibility for a robust 20% earnings trajectory, coupled

HDFC Bank

246,092

974

1,262

29.6

with high quality of earnings on account of high quality retail

business and strategic focus on highly rated corporates.

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

Infosys

250,677

1,091

1,347

23.4

to be a US$20bn in FY2020.

LICHF continues to grow its retail loan book at a healthy pace

with improvement in asset quality. We expect the company to

LIC Housing Finance

21,600

428

592

38.2

post a healthy loan book which is likely to reflect in a strong

earnings growth.

Huge bid pipeline of re-development works at Delhi and other

NBCC

10,400

867

1,089

25.6

State Governments and opportunity from Smart City, positions

NBCC to report strong growth, going forward.

New launches to enable outpace industry growth; margins

TVS Motors

13,542

285

330

15.8

expansion to boost earnings.

Source: Company, Angel Research

Mid Cap

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

Favourable outlook for the AC industry to augur well for

Cooling products business which is out pacing the market

Blue Star

3,008

334

439

31.3

growth. EMPPAC division's profitability to improve once

operating environment turns around.

Economic recovery to have favourable impact on advertising &

circulation revenue growth. Further, the acquisition of a radio

Jagran Prakashan

5,093

156

189

21.3

business (Radio City) would also boost the company's revenue

growth.

Massive capacity expansion along with rail advantage at ICD

Navkar Corporation

2,367

166

265

59.6

as well CFS augurs well for the company

Earnings boost on back of stable material prices and

Radico Khaitan

1,322

156

56.9

favourable pricing environment. Valuation discount to peers

provides additional comfort

Strong brands and distribution network would boost growth

Siyaram Silk Mills

964

1,029

1,354

31.6

going ahead. Stock currently trades at an inexpensive

valuation.

Structural shift in the Lighting industry towards LED lighting will

Surya Roshni

3,008

334

439

31.3

drive growth.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

February 16, 2016

Key Upcoming Events

Global economic events release calendar

Date

Time

Country

Event Description

Unit

Period

Bloomberg Data

Last Reported Estimated

Feb 16, 2016

3:00PM

CPI (YoY)

% Change

Jan

0.20

0.30

Feb 17, 2016

7:00PM

Housing Starts

Thousands

Jan

1,149.00

1,175.00

7:00PM

Building permits

Thousands

Jan

1,204.00

1,200.00

3:00PM

Jobless claims change

% Change

Jan

(4.30)

(3.00)

7:45PM

Industrial Production

Jan

(0.36)

0.35

Producer Price Index (mom)

% Change

Jan

(0.80)

Feb 18, 2016

7:00PM

Initial Jobless claims

Thousands

Feb 13

269.00

275.00

7:00AM

China

Consumer Price Index (YoY)

% Change

Jan

1.60

1.90

Feb 19, 2016

7:00PM

Consumer price index (mom)

% Change

Jan

(0.10)

8:30PM

Euro Zone

Euro-Zone Consumer Confidence

Value

Feb A

(6.30)

(6.60)

Feb 22, 2016

2:00PM

Germany

PMI Services

Value

Feb P

55.00

2:00PM

Germany

PMI Manufacturing

Value

Feb P

52.30

Feb 23, 2016

12:30PM

Germany

GDP nsa (YoY)

% Change

4Q F

2.10

8:30PM

Existing home sales

Million

Jan

5.46

5.50

8:30PM

Consumer Confidence

S.A./ 1985=100

Feb

98.10

97.50

Feb 24, 2016

8:30PM

New home sales

Thousands

Jan

544.00

525.00

Feb 25, 2016

3:00PM

GDP (YoY)

% Change

4Q P

1.90

3:30PM

Euro Zone

Euro-Zone CPI (YoY)

Jan F

0.40

Feb 26, 2016

7:00PM

GDP Qoq (Annualised)

% Change

4Q S

0.70

0.30

Source: Bloomberg, Angel Research

Market Outlook

February 16, 2016

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

9.0

8.4

12.0

9.9

7.5

10.0

8.0

7.4

7.3

7.0

6.7

6.6

8.0

6.3

7.0

6.4

6.0

4.8

4.3

4.2

3.8

6.0

2.8

3.0

4.0

2.5

4.7

5.0

2.0

(3.2)

4.0

(2.0)

3.0

(4.0)

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

5.4

5.6

5.2

5.3

54.0

4.9

5.0

4.4

3.7

52.0

4.0

3.0

50.0

2.0

48.0

1.0

46.0

44.0

Source: MOSPI, Angel Research

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

Exhibit 5: Exports and imports growth trends

Exhibit 6: Key policy rates

(%)

Exports yoy growth

Imports yoy growth

(%)

Repo rate

Reverse Repo rate

CRR

0.0

8.00

(5.0)

7.50

7.00

(10.0)

6.50

(15.0)

6.00

5.50

(20.0)

5.00

(25.0)

4.50

4.00

(30.0)

3.50

(35.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Market Outlook

February 16, 2016

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

40,093

0.4

(16.6)

(18.1)

Russia

Micex

1,739

3.4

(0.1)

(3.6)

India

Nifty

7,163

(5.3)

(8.5)

(16.4)

China

Shanghai Composite

2,746

(12.1)

(23.0)

(12.7)

South Africa

Top 40

44,379

3.8

(5.1)

Mexico

Mexbol

43,206

5.4

(2.6)

0.3

Indonesia

LQ45

831

6.2

10.7

(9.2)

Malaysia

KLCI

1,650

(0.5)

(2.3)

(8.5)

Thailand

SET 50

813

2.9

(9.1)

(23.8)

USA

Dow Jones

15,974

(3.3)

(10.0)

(11.4)

FTSE

5,824

(1.6)

(5.7)

(15.6)

Japan

Nikkei

16,023

(9.6)

(18.4)

(9.4)

Germany

DAX

9,207

(6.0)

(15.6)

(15.5)

France

CAC

4,115

(4.6)

(14.4)

(14.8)

Source: Bloomberg, Angel Research

www.angelbroking.com

Stock Watch

February 16, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY16E FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

Agri / Agri Chemical

Rallis

Neutral

151

2,936

2,097

2,415

14.4

9.5

11.0

15.9

13.7

3.2

2.7

21.1

21.3

1.4

1.2

United Phosphorus

Buy

406

480

17,391

12,500

14,375

18.3

29.8

35.9

13.6

11.3

2.5

2.1

20.0

20.3

1.5

1.2

Auto & Auto Ancillary

Ashok Leyland

Buy

111

25,485

17,995

21,544

11.4

11.6

3.4

4.7

26.3

19.1

4.6

4.2

17.7

22.2

1.4

1.1

Bajaj Auto

Buy

2,343

2,728

67,806

23,695

27,298

21.3

20.4

134.6

151.5

17.4

15.5

5.5

4.7

31.8

30.6

2.4

2.1

Bharat Forge

Buy

786

943

18,295

7,867

8,881

20.0

20.3

34.4

41.0

22.9

19.2

4.4

3.7

21.1

20.9

2.5

2.1

Eicher Motors

Accumulate

18,772

20,044

50,974

15,556

16,747

15.5

17.3

464.8

597.5

40.4

31.4

14.8

10.9

36.2

34.3

3.2

2.9

Gabriel India

Buy

101

1,168

1,415

1,544

8.7

9.0

4.6

5.4

17.7

15.1

3.2

2.8

18.1

18.9

0.8

0.7

Hero Motocorp

Accumulate

2,516

2,864

50,235

28,244

30,532

15.5

15.9

156.7

168.5

16.1

14.9

6.4

5.4

39.9

36.4

1.6

1.5

Jamna Auto Industries Buy

134

160

1,072

1,281

1,473

11.2

11.5

7.6

9.2

17.7

14.6

4.5

3.7

25.4

25.2

0.9

0.8

L G Balakrishnan & Bros Neutral

436

685

1,254

1,394

11.6

11.8

35.9

41.7

12.2

10.5

1.7

1.5

13.5

13.8

0.7

0.6

Mahindra and Mahindra Buy

1,223

1,449

75,941

39,031

44,440

13.8

13.9

57.9

67.6

21.1

18.1

3.4

3.0

16.1

16.6

1.6

1.3

Maruti

Neutral

3,712

112,122

57,865

68,104

16.4

16.7

176.3

225.5

21.1

16.5

4.1

3.5

19.4

21.2

1.7

1.4

Minda Industries

Buy

815

1,047

1,293

2,523

2,890

8.7

9.0

55.0

65.4

14.8

12.5

2.9

2.3

19.3

18.7

0.6

0.5

Motherson Sumi

Buy

240

313

31,792

39,343

45,100

8.8

9.1

10.1

12.5

23.8

19.2

7.5

5.9

35.3

34.4

0.9

0.8

Rane Brake Lining

Buy

348

465

276

454

511

11.5

12.0

25.2

31.0

13.8

11.2

2.1

1.9

14.9

16.6

0.7

Setco Automotive

Neutral

401

594

741

12.7

13.7

1.7

3.2

17.7

9.4

1.9

1.6

10.4

16.9

1.1

0.9

Tata Motors

Buy

316

409

91,366

266,022

312,667

12.8

13.1

26.3

38.3

12.0

8.3

1.6

1.3

8.4

12.1

0.5

TVS Motor

Buy

285

330

13,542

11,263

13,122

6.9

8.5

9.2

15.0

31.0

19.0

7.1

5.6

22.7

29.6

1.2

1.0

Amara Raja Batteries

Buy

874

1,040

14,928

4,892

5,871

17.4

17.6

28.8

37.1

30.4

23.6

7.1

5.7

23.4

24.1

3.0

2.4

Exide Industries

Buy

129

162

10,957

6,950

7,784

14.4

14.8

6.6

7.3

19.5

17.7

2.5

2.3

12.6

12.8

1.3

1.2

Apollo Tyres

Accumulate

156

171

7,964

12,146

12,689

16.8

16.0

21.2

19.0

7.4

8.2

1.2

1.1

16.5

13.0

0.7

0.8

Ceat

Buy

953

1,119

3,856

6,041

6,597

14.1

13.7

99.5

111.9

9.6

8.5

1.9

1.6

19.6

18.5

0.8

0.7

JK Tyres

Neutral

1,862

7,446

7,669

15.2

14.0

19.6

18.4

4.2

4.5

1.1

0.9

25.2

19.5

0.6

Swaraj Engines

Accumulate

803

919

997

552

630

14.2

14.7

44.6

54.1

18.0

14.8

4.2

3.8

23.2

25.6

1.7

1.4

Subros

Neutral

499

1,293

1,527

11.8

11.9

4.2

6.7

19.8

12.4

1.5

1.4

7.7

11.5

0.7

0.6

Indag Rubber

Neutral

166

435

283

329

17.0

17.2

13.0

15.4

12.8

10.7

2.8

2.3

21.8

21.6

1.3

1.0

Capital Goods

ACE

Neutral

353

660

839

4.7

8.2

1.0

3.9

35.7

9.1

1.1

1.0

3.2

11.3

0.7

0.5

BEML

Neutral

983

4,093

3,277

4,006

6.0

8.9

29.2

64.3

33.7

15.3

1.9

1.7

5.7

11.7

1.3

1.0

Bharat Electronics

Buy

1,161

1,414

27,871

7,737

8,634

16.8

17.2

54.0

61.5

21.5

18.9

3.1

2.7

39.3

45.6

2.7

2.3

www.angelbroking.com

Stock Watch

February 16, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

Capital Goods

Voltas

Buy

238

353

7,873

5,363

5,963

8.0

9.1

11.0

13.8

21.6

17.2

3.3

2.9

16.2

17.9

1.4

1.3

BGR Energy

Neutral

717

3,615

3,181

9.5

9.4

16.7

12.4

6.0

8.0

0.6

10.0

7.0

0.6

0.8

BHEL

Neutral

108

26,422

33,722

35,272

10.8

11.7

10.5

14.2

10.3

7.6

0.8

0.7

7.0

9.0

0.9

0.8

Blue Star

Buy

334

439

3,008

3,548

3,977

6.3

6.9

13.7

17.2

24.4

19.5

6.1

4.0

26.1

25.4

0.9

0.8

Crompton Greaves

Neutral

126

7,897

13,484

14,687

4.9

6.2

4.5

7.1

28.0

17.8

2.0

1.9

7.2

10.8

0.7

0.6

Greaves Cotton

Neutral

127

3,090

1,655

1,755

16.6

16.8

7.4

7.8

17.1

16.2

3.4

3.2

21.1

20.6

1.8

1.7

Inox Wind

Buy

249

458

5,517

4,980

5,943

17.0

17.5

26.6

31.6

9.4

7.9

2.8

2.1

35.0

30.0

1.3

1.0

KEC International

Neutral

109

2,802

8,791

9,716

6.1

6.8

5.4

8.2

20.2

13.3

2.0

1.9

10.0

14.0

0.5

Thermax

Neutral

771

9,183

6,413

7,525

7.4

8.5

30.5

39.3

25.3

19.6

3.9

3.4

15.0

17.0

1.4

1.2

Cement

ACC

Buy

1,255

1,630

23,564

13,151

14,757

16.4

18.3

63.9

83.4

19.6

15.1

2.5

2.3

13.3

16.1

1.6

1.4

Ambuja Cements

Buy

198

233

30,689

11,564

12,556

19.4

20.7

8.9

10.1

22.2

19.6

2.8

2.6

12.8

13.8

2.3

2.1

HeidelbergCement

Neutral

1,465

1,772

1,926

13.3

15.4

1.0

3.0

64.7

21.6

1.6

1.5

2.6

7.9

1.4

1.2

India Cements

Buy

112

2,273

4,216

4,840

18.0

19.5

4.0

9.9

18.5

7.5

0.7

4.0

9.5

0.9

0.7

JK Cement

Buy

453

744

3,167

3,661

4,742

10.1

15.8

18.0

61.0

25.2

7.4

1.8

1.6

7.5

22.9

1.3

1.0

J K Lakshmi Cement

Buy

269

430

3,169

2,947

3,616

16.7

19.9

11.5

27.2

23.4

9.9

2.2

1.9

9.8

20.8

1.5

1.2

Mangalam Cements

Neutral

168

448

1,053

1,347

10.5

13.3

8.4

26.0

20.0

6.5

0.8

4.3

12.5

0.8

0.6

Orient Cement

Buy

135

183

2,766

1,854

2,524

21.2

22.2

7.7

11.1

17.5

12.2

2.5

2.2

13.3

15.7

2.2

1.6

Ramco Cements

Neutral

375

8,935

4,036

4,545

20.8

21.3

15.1

18.8

24.9

20.0

3.0

2.7

12.9

14.3

2.7

2.3

Shree Cement^

Neutral

10,526

36,671

7,150

8,742

26.7

28.6

228.0

345.5

46.2

30.5

6.8

5.7

15.7

20.3

4.9

3.9

UltraTech Cement

Buy

2,804

3,282

76,935

25,021

30,023

19.1

21.6

89.0

132.0

31.5

21.2

3.7

3.2

12.2

15.9

3.1

2.6

Construction

ITNL

Neutral

2,265

7,360

8,825

34.0

35.9

7.0

9.0

9.8

7.7

0.3

3.2

3.7

3.6

KNR Constructions

Buy

457

673

1,284

937

1,470

14.3

14.0

33.5

38.6

13.6

11.8

2.1

1.8

15.4

1.5

0.9

Larsen & Toubro

Accumulate

1,149

1,310

107,041

58,870

65,708

8.3

10.3

42.0

53.0

27.4

21.7

1.9

1.7

8.8

11.2

2.0

1.8

Gujarat Pipavav Port

Neutral

154

7,438

629

684

51.0

52.2

6.4

5.9

24.0

26.1

3.2

2.9

15.9

12.7

11.5

10.4

MBL Infrastructures

Buy

141

285

584

2,313

2,797

12.2

14.6

19.0

20.0

7.4

7.0

0.8

0.7

11.3

10.6

1.0

0.9

Nagarjuna Const.

Neutral

3,583

7,892

8,842

8.8

9.1

3.0

5.3

21.5

12.2

1.1

1.0

5.0

8.5

0.7

0.6

PNC Infratech

Accumulate

523

558

2,685

1,873

2,288

13.2

13.5

24.0

32.0

21.8

16.4

2.1

1.9

12.1

12.3

1.5

1.3

Simplex Infra

Neutral

237

1,174

5,955

6,829

10.3

10.5

16.0

31.0

14.8

7.7

0.8

0.7

5.3

9.9

0.7

0.6

Power Mech Projects

Neutral

561

826

1,539

1,801

12.8

12.7

59.0

72.1

9.5

7.8

1.4

1.2

18.6

16.8

0.5

www.angelbroking.com

Stock Watch

February 16, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

Construction

Sadbhav Engineering

Neutral

244

4,179

3,481

4,219

10.7

10.8

8.0

12.0

30.5

20.3

2.8

2.5

10.3

13.5

1.5

1.2

NBCC

Buy

867

1,089

10,400

5,816

7,382

6.9

7.7

29.6

39.8

29.3

21.8

5.3

4.2

24.1

26.7

1.5

1.2

MEP Infra

Neutral

733

1,956

1,876

28.1

30.5

1.3

3.0

34.7

15.0

7.3

4.9

21.2

32.8

1.8

SIPL

Neutral

2,582

675

1,042

62.4

64.7

2.8

3.1

15.5

10.5

Financials

Allahabad Bank

Neutral

2,645

8,569

9,392

2.8

2.9

16.3

27.5

2.7

1.6

0.3

0.2

7.6

11.9

Axis Bank

Buy

418

494

99,370

26,473

31,527

3.5

3.6

35.7

43.5

11.7

9.6

2.0

1.7

17.9

18.9

Bank of Baroda

Neutral

140

32,155

18,485

21,025

1.9

2.0

13.5

21.1

10.4

6.6

0.8

0.7

7.3

10.6

Bank of India

Neutral

7,271

15,972

17,271

1.9

2.0

15.3

33.4

5.9

2.7

0.3

0.2

3.6

7.6

Canara Bank

Neutral

179

9,728

15,441

16,945

2.0

2.1

46.6

70.4

3.9

2.5

0.3

8.0

11.2

Dena Bank

Neutral

1,845

3,440

3,840

2.1

2.3

7.3

10.0

4.0

2.9

0.3

0.2

6.1

7.9

Federal Bank

Neutral

7,610

3,477

3,999

3.0

5.0

6.2

8.8

7.1

0.9

0.8

10.6

11.9

HDFC

Neutral

1,081

170,676

10,358

11,852

3.3

41.1

47.0

26.3

23.0

5.0

4.6

24.7

24.9

HDFC Bank

Buy

974

1,262

246,092

38,309

47,302

4.3

49.3

61.1

19.8

16.0

3.4

2.9

18.5

19.7

ICICI Bank

Buy

203

254

118,230

34,279

39,262

3.3

21.0

24.4

9.7

8.4

1.6

1.4

14.4

14.7

IDBI Bank

Neutral

10,213

9,625

10,455

1.8

8.5

14.2

6.3

3.8

0.4

5.9

9.3

Indian Bank

Neutral

4,152

6,160

6,858

2.5

24.5

29.8

3.5

2.9

0.3

7.7

8.6

LIC Housing Finance

Buy

428

592

21,600

3,101

3,745

2.5

33.0

40.2

13.0

10.7

2.4

2.1

19.7

20.5

Oriental Bank

Neutral

2,598

7,643

8,373

2.4

37.2

45.4

2.3

1.9

0.2

8.2

9.4

Punjab Natl.Bank

Neutral

15,080

23,638

26,557

2.8

17.9

27.2

4.3

2.8

0.4

8.5

12.0

South Ind.Bank

Neutral

2,457

1,965

2,185

2.5

3.3

7.3

5.5

0.7

9.5

11.7

St Bk of India

Buy

167

202

129,832

82,520

93,299

2.7

2.8

20.0

24.5

8.4

6.8

0.9

0.8

11.5

12.8

Union Bank

Neutral

120

8,256

12,646

14,129

2.3

2.4

31.0

39.1

3.9

3.1

0.4

9.8

11.4

Vijaya Bank

Neutral

2,693

3,536

3,827

1.9

5.5

6.7

5.7

4.7

0.5

0.4

7.8

8.8

Yes Bank

Neutral

752

31,565

7,190

9,011

3.2

3.3

58.2

69.7

12.9

10.8

2.3

2.0

19.2

19.6

FMCG

Asian Paints

Neutral

858

82,275

16,553

19,160

16.0

16.2

17.7

21.5

48.5

39.9

12.9

11.6

29.4

31.2

4.8

4.1

Britannia

Neutral

2,668

32,009

8,065

9,395

9.6

10.2

47.2

65.5

56.5

40.7

18.8

17.8

38.3

41.2

3.8

3.3

Colgate

Neutral

848

23,068

4,836

5,490

19.5

19.7

48.5

53.2

17.5

15.9

12.8

11.2

99.8

97.5

4.7

4.1

Dabur India

Accumulate

248

267

43,627

9,370

10,265

17.1

17.2

7.3

8.1

33.8

30.6

10.2

8.3

33.7

30.6

4.6

4.2

GlaxoSmith Con*

Accumulate

5,801

6,118

24,398

4,919

5,742

17.2

17.4

168.3

191.2

34.5

30.3

9.8

8.3

28.8

28.9

4.5

3.8

www.angelbroking.com

Stock Watch

February 16, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY16E FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FMCG

Godrej Consumer

Neutral

1,245

42,398

10,168

12,886

16.1

32.1

38.4

38.8

32.4

7.9

7.3

19.7

21.0

4.3

3.4

HUL

Neutral

805

174,192

34,940

38,957

17.5

17.7

20.8

24.7

38.7

32.6

43.1

34.4

110.5

114.2

4.8

4.3

ITC

Buy

304

359

244,122

41,068

45,068

37.8

37.4

13.9

15.9

21.8

19.1

7.3

6.4

34.1

33.8

5.6

5.0

Marico

Neutral

229

29,597

6,551

7,766

15.7

16.0

10.4

12.5

22.1

18.4

6.4

5.3

33.2

32.4

4.4

3.8

Nestle*

Buy

5,059

6,646

48,778

11,291

12,847

22.2

22.3

158.9

184.6

31.8

27.4

16.6

15.0

55.0

57.3

4.2

3.6

Tata Global

Buy

106

144

6,690

8,635

9,072

9.8

9.9

6.5

7.6

16.3

14.0

1.6

6.8

7.4

0.7

HCL Tech^

Buy

826

1,038

116,339

42,038

47,503

21.2

21.5

51.5

57.7

16.0

14.3

3.5

2.7

21.5

18.8

2.4

1.9

Infosys

Buy

1,091

1,347

250,677

61,850

69,981

27.5

59.4

65.7

18.4

16.6

3.9

3.3

21.2

20.1

3.3

2.8

TCS

Buy

2,270

2,854

447,198

108,487

122,590

28.3

28.5

122.8

138.4

18.5

16.4

7.0

6.4

38.0

38.9

3.7

3.2

Tech Mahindra

Buy

431

646

41,726

25,566

28,890

16.0

17.0

26.3

31.9

16.4

13.5

3.0

2.5

17.9

18.6

1.4

1.2

Wipro

Buy

526

680

129,923

50,808

56,189

23.7

23.8

37.3

40.7

14.1

12.9

2.7

2.5

19.2

17.7

2.0

1.7

Media

D B Corp

Accumulate

315

356

5,783

2,241

2,495

27.8

27.9

21.8

25.6

14.5

12.3

3.8

3.3

26.7

28.5

2.5

2.3

HT Media

Neutral

1,849

2,495

2,603

11.2

7.3

8.6

10.9

9.2

0.9

0.8

7.4

8.1

0.2

Jagran Prakashan

Buy

156

189

5,093

2,170

2,355

27.2

26.2

8.9

9.9

17.5

15.7

3.7

3.2

20.9

20.5

2.2

2.1

Sun TV Network

Neutral

346

13,635

2,779

3,196

70.2

70.5

22.8

27.3

15.2

12.7

3.7

3.4

26.7

28.3

4.7

4.0

Hindustan Media

Neutral

271

1,989

920

1,031

20.0

19.2

20.9

14.1

13.0

2.3

2.0

16.4

15.3

1.7

1.5

Ventures

Metals & Mining

Coal India

Buy

324

380

204,555

76,167

84,130

19.9

22.3

22.4

25.8

14.5

12.5

5.2

5.1

35.5

41.0

2.0

1.8

Hind. Zinc

Neutral

168

70,943

14,641

14,026

50.4

17.7

16.0

9.5

10.5

1.5

1.3

16.2

13.2

2.5

2.3

Hindalco

Neutral

13,804

104,356

111,186

8.7

9.5

6.7

11.1

10.0

6.1

0.4

0.3

3.5

5.9

0.7

0.6

JSW Steel

Neutral

1,041

25,151

42,308

45,147

16.4

20.7

(10.3)

49.5

21.0

1.2

1.1

(1.0)

5.6

1.6

1.5

NMDC

Neutral

35,603

8,237

10,893

46.6

44.5

10.0

11.7

9.0

7.7

1.0

0.9

12.5

13.0

4.1

3.1

SAIL

Neutral

14,827

45,915

53,954

7.2

10.5

1.5

4.4

23.8

8.2

0.3

2.3

4.1

1.0

0.9

Vedanta

Neutral

22,235

71,445

81,910

26.2

26.3

12.9

19.2

5.8

3.9

0.4

7.2

8.9

0.8

0.6

Tata Steel

Neutral

246

23,911

126,760

137,307

8.9

11.3

6.4

23.1

38.7

10.7

0.8

2.0

7.1

0.8

0.7

Oil & Gas

Cairn India

Neutral

125

23,408

11,323

12,490

49.4

51.0

20.7

6.0

6.1

0.4

6.4

6.1

1.1

0.5

GAIL

Neutral

335

42,481

64,856

70,933

9.1

9.6

24.0

28.9

14.0

11.6

1.2

1.1

8.8

9.6

0.8

0.7

ONGC

Neutral

200

171,024

154,564

167,321

36.8

37.4

28.6

32.5

7.0

6.2

0.9

0.8

12.7

13.5

1.3

1.2

Petronet LNG

Neutral

258

19,354

29,691

31,188

5.8

6.2

12.8

13.4

20.2

19.2

3.0

2.7

15.8

14.8

0.7

Indian Oil Corp

Buy

389

455

94,350

359,607

402,760

5.9

6.1

42.5

48.7

9.2

8.0

1.2

1.1

14.1

14.4

0.4

0.3

www.angelbroking.com

Stock Watch

February 16, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY16E FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

Oil & Gas

Reliance Industries

Buy

945

1,150

306,010

304,775

344,392

12.6

13.4

91.3

102.6

10.4

9.2

1.2

1.1

11.8

12.0

0.9

0.8

Pharmaceuticals

Alembic Pharma

Neutral

623

11,735

3,274

3,802

26.9

19.4

35.0

28.7

17.8

21.7

7.9

5.9

55.6

31.2

3.6

3.0

Aurobindo Pharma

Buy

654

856

38,233

14,923

17,162

22.0

23.0

35.7

42.8

18.3

15.3

5.4

4.1

34.0

30.2

2.9

2.5

Aventis*

Neutral

4,281

9,860

2,082

2,371

17.4

20.8

118.2

151.5

36.2

28.3

5.3

4.3

19.9

25.5

4.4

3.7

Cadila Healthcare

Accumulate

315

352

32,227

10,224

11,840

21.0

22.0

14.6

17.6

21.6

17.9

5.9

4.6

30.8

29.0

3.2

2.7

Cipla

Buy

540

636

43,395

14,211

16,611

20.6

19.0

27.0

28.9

20.0

18.7

3.4

2.9

18.4

16.8

3.0

2.5

Dr Reddy's

Buy

2,856

3,933

48,703

16,838

19,575

25.0

23.1

167.5

178.8

17.1

16.0

3.6

3.0

23.1

20.4

2.8

2.4

Dishman Pharma

Neutral

319

2,575

1,733

1,906

21.5

17.0

19.9

18.8

16.0

1.9

1.7

10.5

11.2

2.0

1.7

GSK Pharma*

Neutral

3,222

27,295

2,870

3,158

20.0

22.1

59.5

68.3

54.2

47.2

16.0

16.4

28.5

34.3

9.0

8.2

Indoco Remedies

Neutral

272

2,505

1,033

1,199

15.9

18.2

9.4

13.6

28.9

20.0

4.3

3.6

15.7

19.7

2.5

2.2

Ipca labs

Buy

615

900

7,760

3,363

3,909

12.9

18.6

13.4

28.0

45.9

22.0

3.3

2.9

7.4

14.0

2.6

2.2

Lupin

Neutral

1,798

80,983

13,092

16,561

25.0

27.0

50.4

68.3

35.7

26.3

7.4

5.8

22.8

24.7

5.9

4.5

Sun Pharma

Accumulate

849

950

204,309

28,163

32,610

25.8

30.7

17.4

26.9

48.8

31.6

4.6

4.0

13.0

16.6

6.7

5.6

Power

Tata Power

Neutral

16,106

35,923

37,402

22.6

22.8

4.1

5.2

14.7

11.6

1.1

7.5

9.3

1.4

1.3

NTPC

Buy

125

157

103,027

87,064

98,846

23.5

11.7

13.2

10.7

9.5

1.2

1.1

11.4

12.1

2.2

2.0

Power Grid

Buy

139

170

72,562

20,702

23,361

86.7

86.4

12.1

13.2

11.5

10.5

1.7

1.5

15.6

15.1

8.4

7.8

Telecom

Bharti Airtel

Neutral

319

127,377

101,748

109,191

32.1

31.7

12.0

12.5

26.6

25.5

1.8

1.7

6.9

6.7

1.9

1.7

Idea Cellular

Neutral

109

39,191

34,282

36,941

32.0

31.5

5.9

6.2

18.5

17.6

1.7

1.5

9.9

9.3

1.7

1.6

zOthers

Abbott India

Neutral

4,803

10,205

2,715

3,153

14.5

14.1

134.3

152.2

35.8

31.6

8.9

7.4

27.4

25.6

3.5

2.9

Bajaj Electricals

Buy

172

290

1,740

4,719

5,287

5.2

5.8

8.6

12.7

20.1

13.6

2.3

2.0

11.4

14.8

0.4

0.3

Finolex Cables

Neutral

229

3,505

2,520

2,883

12.2

12.0

12.7

14.2

18.1

16.1

2.5

2.2

13.6

13.5

1.1

1.0

Goodyear India*

Buy

481

582

1,109

1,800

1,600

11.7

11.5

58.7

52.9

8.2

9.1

1.8

1.6

24.6

18.7

0.4

Hitachi

Neutral

1,059

2,879

1,779

2,081

7.8

8.8

21.8

33.4

48.6

31.7

7.8

6.3

17.4

22.1

1.7

1.4

Jyothy Laboratories

Neutral

273

4,938

1,620

1,847

11.5

7.3

8.5

37.4

32.2

4.8

4.5

13.3

14.4

2.9

2.5

MRF

Buy

33,265

45,575

14,108

20,316

14,488

21.4

21.1

5,488.0

3,798.0

6.1

8.8

2.1

1.7

41.1

21.2

0.6

0.9

Page Industries

Neutral

10,760

12,001

1,929

2,450

19.8

20.1

229.9

299.0

46.8

36.0

20.7

14.4

52.1

47.1

6.3

4.9

Relaxo Footwears

Neutral

418

5,020

1,767

2,152

12.3

12.5

19.3

25.1

21.7

16.7

5.3

4.1

27.7

27.8

2.9

2.4

Siyaram Silk Mills

Buy

1,029

1,354

964

1,636

1,815

11.5

89.9

104.1

11.4

9.9

1.9

1.6

17.9

17.8

0.8

0.7

Styrolution ABS India*

Neutral

515

906

1,271

1,440

8.6

9.2

32.0

41.1

16.1

12.6

1.6

1.5

10.7

12.4

0.7

0.6

www.angelbroking.com

Stock Watch

February 16, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

zOthers

TVS Srichakra

Buy

2,326

3,217

1,781

2,035

2,252

15.9

15.3

248.6

268.1

9.4

8.7

4.1

2.9

43.6

33.9

0.9

0.8

HSIL

Buy

250

302

1,808

2,123

2,384

16.1

16.5

15.0

18.9

16.6

13.3

1.3

1.2

8.0

9.4

1.2

1.1

Kirloskar Engines India

Neutral

217

3,131

2,403

2,554

8.6

9.9

9.2

10.5

23.6

20.6

2.3

2.2

9.7

10.7

0.9

Ltd

M M Forgings

Buy

416

614

502

511

615

21.7

21.6

43.1

55.8

9.7

7.5

1.8

1.4

19.9

21.2

1.2

0.9

Banco Products (India) Neutral

104

744

1,208

1,353

11.0

12.3

10.8

14.5

9.7

7.2

1.1

1.0

11.9

14.5

0.6

0.5

Competent Automobiles Neutral

138

1,040

1,137

3.2

3.1

25.7

28.0

5.4

4.9

0.8

0.7

15.0

14.3

0.1

Nilkamal

Neutral

1,099

1,640

1,871

2,031

10.7

10.5

63.2

69.8

17.4

15.8

2.8

2.4

17.6

16.6

0.9

0.8

Visaka Industries

Buy

144

154

1,086

1,197

9.9

10.3

21.5

28.8

4.5

3.4

0.4

9.6

11.6

0.4

0.3

Transport Corporation of

Neutral

231

1,759

2,830

3,350

8.8

9.0

14.4

18.3

16.1

12.6

2.5

2.2

15.4

17.1

0.7

0.6

India

Elecon Engineering

Neutral

570

1,359

1,482

10.3

13.7

0.8

3.9

65.2

13.5

1.1

1.0

1.6

7.8

0.8

0.7

Surya Roshni

Buy

135

201

591

2,992

3,223

8.1

8.4

14.7

18.3

9.2

7.4

0.9

0.8

9.7

11.0

0.5

0.4

MT Educare

Neutral

154

615

286

366

18.3

17.7

7.7

9.4

20.0

16.5

4.2

3.7

20.2

21.1

2.1

1.6

Radico Khaitan

Buy

156

1,322

1,517

1,635

12.7

13.4

5.8

7.1

17.1

14.0

1.5

1.3

8.6

9.6

1.3

1.2

Garware Wall Ropes

Buy

319

473

698

862

974

11.2

24.9

29.6

12.8

10.8

1.9

1.7

15.1

15.4

0.8

0.7

Wonderla Holidays

Neutral

344

1,942

206

308

44.0

43.6

9.0

12.9

38.2

26.7

5.2

4.7

13.7

17.8

9.3

6.2

Linc Pen & Plastics

Neutral

183

270

340

371

8.3

8.9

10.8

13.2

16.9

13.9

2.7

2.4

16.0

17.1

0.8

The Byke Hospitality

Neutral

154

616

222

287

20.5

5.6

7.6

27.2

20.3

5.1

4.2

18.9

20.8

2.8

2.2

Interglobe Aviation

Neutral

839

30,236

17,022

21,122

20.7

14.5

63.9

53.7

13.1

15.6

19.7

16.1

149.9

103.2

1.8

1.4

Coffee Day Enterprises

Neutral

225

4,630

2,692

2,964

17.0

18.6

4.7

47.4

2.8

2.6

0.2

5.5

2.1

2.0

Ltd

Navneet Education

Neutral

1,989

998

1,062

24.1

24.0

5.8

6.1

14.5

13.7

3.2

2.8

22.0

20.6

2.1

2.0

Navkar Corporation

Buy

166

265

2,367

365

436

38.3

37.5

5.6

5.9

29.4

28.2

1.8

1.7

6.3

6.1

7.3

6.3

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on February 15, 2016

www.angelbroking.com

Market Outlook

February 16, 2016

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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