Market Outlook

September 23, 2015

Dealer’s Diary

Domestic Indices

Chg (%)

(Pts)

(Close)

BSE Sensex

(2.1)

(541)

25,652

Indian markets are expected to open in the red tracking the SGX Nifty and mixed

Nifty

(2.1)

(165)

7,812

Asian cues.

MID CAP

(1.6)

(168)

10,525

US markets closed in the red led by ongoing uncertainty about the outlook for U.S.

SMALL CAP

(1.2)

(132)

10,803

monetary policy. Weakness in the European markets also weighed on U.S. stocks,

BSE HC

(0.5)

(80)

17,365

with the major averages in the region all pulling back sharply.

BSE PSU

(2.5)

(171)

6,670

European markets finished in the red as auto stocks came under severe pressure

BANKEX

(3.0)

(612)

19,502

after Volkswagen admitted to manipulating emission tests norms for diesel cars in

AUTO

(1.7)

(305)

17,297

the United States. Drug companies were also down on the news that Hillary Clinton

METAL

(4.2)

(309)

6,977

will unveil a plan to take on check pricing in the specialty drug market. Mining and

OIL & GAS

(1.3)

(111)

8,615

resource companies were also weak, due to falling commodity prices.

BSE IT

(0.2)

(24)

11,206

Indian markets tumbled in the second half led by negative cues from European

Global Indices

Chg (%)

(Pts)

(Close)

markets and U.S. index futures. Increased volatility ahead of the expiry of September

Dow Jones

(1.1)

(180)

16,330

series F&O contracts also prompted investors to book some profits at higher levels.

NASDAQ

(1.5)

(72.2)

4,757

FTSE

(2.8)

(173)

5,936

News & Result Analysis

Nikkei

(2.0)

(362)

18,070

 UltraTech commissions 1.6 MTPA grinding unit in Haryana

Hang Seng

0.2

21,797

 Global steel production fell by 3% in August 2015, lead by China

Refer detailed news analysis on the following page

Straits Times

(0.5)

(14)

2,868

Shanghai Com

0.9

3,186

Markets Today

The trend deciding level for the day is 25,854 / 7,874 levels. If NIFTY trades above

this level during the first half-an-hour of trade then we may witness a further rally up

Indian ADR

Chg (%)

(Pts)

(Close)

to 26,137 - 26,622 / 7,960 - 8,108 levels. However, if NIFTY trades below

INFY

(0.6)

(0.1)

$17.8

25,854 / 7,874 levels for the first half-an-hour of trade then it may correct towards

WIT

(2.8)

(0.3)

$11.8

26,369 - 25,086 / 7,726 - 7,640 levels.

IBN

(3.0)

(0.2)

$8.4

Indices

PIVOT

HDB

(1.8)

(1.1)

$58.4

SENSEX

25,086

25,369

25,854

26,137

26,622

Advances / Declines

BSE

NSE

NIFTY

7,640

7,726

7,874

7,960

8,108

Advances

971

1,040

Declines

1,710

454

Net Inflows (September 21, 2015)

` cr

Purch

Sales

Net

MTD

YTD

Unchanged

108

FII

3,848

3,402

446

(1,790)

121,971

Volumes (` cr)

MFs

724

639

5,110

75,758

BSE

2,279

FII Derivatives (September 22, 2015)

NSE

17,370

` cr

Purch

Sales

Net

Open Interest

Index Futures

9,695

10,392

(697)

31,444

Stock Futures

16,834

15,586

1,248

49,830

Gainers / Losers

Gainer

Loser

Company

Price (`)

chg (%)

Company

Price (`)

chg (%)

INDHOTEL

4.3

AMTEKAUTO

(11.5)

JUSTDIAL

1,470

3.8

MOTHERSUMI

242

(7.7)

NCC

3.3

VEDL

(6.3)

INFRATEL

414

3.3

HINDALCO

(6.2)

RAJESHEXPO

429

2.4

JPPOWER

(6.2)

www.angelbroking.com

Market Outlook

September 23, 2015

UltraTech commissions 1.6 MTPA grinding unit in Haryana

UltraTech Cement has commissioned its grinding unit with a capacity of 1.6

million tonnes per annum (MTPA) in Jhajjar, Haryana, aimed at increasing the

firm's slice in the north region -- that accounts for a lion's share of India's cement

market -particularly the National Capital Region (NCR) and Haryana. With

commissioning of the firm's 13th unit, UltraTech's total cement capacity has

reached 63.1 MTPA.

North region accounts for 35% of the cement demand in the country and is

expected to grow at around 8%. The commissioning of this plant will help Ultratech

in capturing the growing demand for cement in the northern region with timely

and effective supplies to customers. We retain our Buy rating on the stock.

Global steel production fell by 3% in August 2015, lead by China

Global steel production fell by 3% in August 2015, its biggest fall this year led by

decline in China's steel production. India however reported a 2.8% growth in steel

output during the month compared to same month last year. World steel

production went down to 132MT last month, as China registered a 3.5% drop in

steel output to 66.9MT. Despite the threat of imports, India produced 7.66MT in

August 2015 compared to 7.45MT in August 2014, according to the World Steel

Association (WSA). Crude steel capacity utilisation ratio for 65 countries in August

2015 was 68%. This was 3.6 percentage points lower than August 2014 and 0.4

percentage points lower than July 2015.

Economic and Political News

 Centre may start auction of 80-90 identified mine blocks by November

 Hotel occupancy in India surpassed 60% for the first time in four years

 Engineering exports plunge on slowdown in China demand: EEPC

Corporate News

 MindTree to invest `125cr for Bhubaneswar campus expansion

 Pidilite eyes `900cr from construction chemical division

 Indraprastha Gas Ltd provided 100,000 new piped gas connections in FY15

www.angelbroking.com

Market Outlook

September 23, 2015

Top Picks

Large Cap

Market Cap

CMP

Target

Upside

Company

Sector

Rating

(` Cr)

(`)

(%)

Aurobindo

Pharma

41,806

Buy

716

872

21.8

Axis Bank

Financials

1,21,030

Buy

509

701

37.7

ICICI Bank

Financials

1,57,176

Buy

271

370

36.7

Infosys

2,53,927

Buy

1,106

1,306

18.1

Capital

Inox Wind

8,066

Buy

363

505

38.9

Goods

LIC HFL

Financials

21,971

Buy

435

570

30.9

Power Grid

Power

68,455

Buy

131

170

29.9

TCS

4,94,843

Buy

2,526

3,168

25.4

Tech Mahindra IT

53,643

Buy

558

646

15.9

Yes Bank

Financials

30,691

Buy

733

953

30.0

Sun Pharma

Pharma

2,16,808 Accumulate

901

950

5.4

Source: Angel Research, Bloomberg

Mid Cap

Market Cap (`

CMP

Target

Upside

Company

Sector

Rating

Cr)

(`)

(%)

Bajaj Electricals

Others

2,524

Buy

250

341

36.3

Garware Wall

Others

692

Buy

316

390

23.4

MBL Infra

Construction

1,017

Buy

245

360

46.7

Minda Industries

Auto Ancillary

820

Buy

517

652

26.2

MT Educare

Others

502

Buy

126

169

34.0

Radico Khaitan

Others

1,122

Buy

112

32.8

Surya Roshni

Others

540

Buy

123

183

48.7

Tree House

Others

1,498

Buy

354

449

26.9

Source: Angel Research, Bloomberg

www.angelbroking.com

Market Outlook

September 23, 2015

Global economic events release calendar

Date

Time

Country

Event Description

Unit

Period

Bloomberg Data

Last Reported Estimated

September 23, 2015

1:00PM

Germany PMI Services

Value

Sep P

54.90

54.50

1:00PM

Germany PMI Manufacturing

Value

Sep P

53.30

52.60

September 24, 2015

6:00PM

Initial Jobless claims

Thousands

Sep 19

264.00

272.00

7:30PM

New home sales

Thousands

Aug

507.00

515.00

September 25, 2015

6:00PM

GDP Qoq (Annualised)

% Change

2Q T

3.70

September 29, 2015

7:30PM

Consumer Confidence

S.A./ 1985=100

Sep

101.54

97.00

11:00AM

India

RBI Reverse Repo rate

Sep 29

6.25

6.00

11:00AM

India

RBI Repo rate

Sep 29

7.25

7.00

11:00AM

India

RBI Cash Reserve ratio

Sep 29

4.00

September 30, 2015

1:25PM

Germany Unemployment change (000's)

Thousands

Sep

(7.00)

2:00PM

GDP (YoY)

% Change

2Q F

2.60

October 1, 2015

6:30AM

China

PMI Manufacturing

Value

Sep

49.70

2:00PM

PMI Manufacturing

Value

Sep

51.50

October 2, 2015

6:00PM

Change in Nonfarm payrolls

Thousands

Sep

173.00

200.00

6:00PM

Unnemployment rate

Sep

5.10

October 7, 2015

2:00PM

Industrial Production (YoY)

% Change

Aug

0.80

October 8, 2015

4:30PM

BOE Announces rates

% Ratio

Oct 8

0.50

October 9, 2015

India

Imports YoY%

% Change

Sep

(9.95)

India

Exports YoY%

% Change

Sep

(20.66)

October 12, 2015

5:30PM

India

Industrial Production YoY

% Change

Aug

4.20

October 13, 2015

2:00PM

CPI (YoY)

% Change

Sep

China

Exports YoY%

% Change

Sep

(5.50)

October 14, 2015

2:00PM

Jobless claims change

% Change

Sep

1.20

12:00PM

India

Monthly Wholesale Prices YoY%

% Change

Sep

(4.95)

7:00AM

China

Consumer Price Index (YoY)

% Change

Sep

2.00

October 15, 2015

6:00PM

Consumer price index (mom)

% Change

Sep

(0.10)

October 16, 2015

6:45PM

Industrial Production

Sep

(0.38)

2:30PM

Euro Zone Euro-Zone CPI (YoY)

Sep F

0.10

October 19, 2015

7:30AM

China

Industrial Production (YoY)

% Change

Sep

6.10

7:30AM

China

Real GDP (YoY)

% Change

7.00

Source: Bloomberg, Angel Research

Market Outlook

September 23, 2015

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

9.0

8.4

6.0

5.2

4.8

4.4

4.2

5.0

8.0

7.5

3.6

3.4

7.0

4.0

2.6

2.8

2.5

6.7

6.6

3.0

7.0

6.3

6.4

2.0

6.0

1.0

5.0

4.7

5.0

(1.0)

4.0

(2.0)

(3.0)

3.0

(2.7)

(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

5.6

6.0

5.4

5.3

5.4

54.0

5.2

5.0

4.9

4.6

5.0

4.3

52.0

3.7

4.0

3.3

50.0

3.0

2.0

48.0

1.0

46.0

44.0

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

30.0

9.00

20.0

8.00

10.0

7.00

0.0

6.00

(10.0)

5.00

(20.0)

4.00

(30.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Market Outlook

September 23, 2015

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

46,265

1.2

(12.9)

(18.6)

Russia

Micex

1,664

0.1

3.3

16.4

India

Nifty

7,977

(6.1)

(4.5)

(1.6)

China

Shanghai Composite

3,152

(10.2)

(34.0)

36.5

South Africa

Top 40

44,524

2.6

(2.6)

(0.8)

Mexico

Mexbol

43,232

2.5

(3.1)

(4.0)

Indonesia

LQ45

730

0.4

(11.6)

(17.4)

Malaysia

KLCI

1,616

2.6

(4.6)

(12.2)

Thailand

SET 50

894

1.0

(8.6)

(15.8)

USA

Dow Jones

16,330

(0.8)

(9.6)

(4.9)

FTSE

5,936

(4.1)

(10.5)

(11.1)

Japan

Nikkei

18,070

(7.0)

(10.4)

10.7

Germany

DAX

9,571

(4.5)

(14.0)

3.8

France

CAC

4,429

(4.4)

(9.2)

1.6

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

September 23, 2015

Stock Watch

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

218

4,233

2,075

2,394

14.4

9.5

11.0

22.9

19.8

4.6

3.9

21.1

21.3

2.1

1.8

United Phosphorus

Accumulate

462

510

19,819

13,698

15,752

17.6

32.1

38.5

14.4

12.0

2.8

2.3

21.4

21.3

1.5

1.3

Auto & Auto Ancillary

Ashok Leyland

Accumulate

25,286

18,186

21,529

10.8

11.2

3.3

4.5

26.9

19.7

4.6

4.2

17.3

21.6

1.3

1.1

Bajaj Auto

Accumulate

2,258

2,438

65,343

23,544

27,245

19.8

127.0

143.4

17.8

15.8

5.4

4.6

30.3

29.4

2.3

2.0

Eicher Motors

Buy

18,335

22,859

49,765

11,681

15,550

15.3

16.9

358.5

564.3

51.1

32.5

15.4

11.4

29.8

34.9

4.1

3.1

Hero Motocorp

Accumulate

2,386

2,672

47,647

28,500

32,764

14.1

14.3

146.9

167.0

16.2

14.3

6.1

5.2

37.8

36.5

1.5

1.3

L G Balakrishnan & Bros Neutral

441

692

1,254

1,394

11.6

11.8

35.9

41.7

12.3

10.6

1.7

1.5

13.5

13.8

0.7

0.6

Mahindra and Mahindra Buy

1,187

1,383

73,711

38,337

43,069

13.0

13.4

52.9

63.5

22.4

18.7

3.4

3.0

15.0

15.9

1.6

1.3

Maruti

Accumulate

4,471

4,735

135,059

58,102

68,587

16.7

16.9

182.0

225.5

24.6

19.8

4.9

4.2

19.9

21.0

2.1

1.7

Minda Industries

Buy

517

652

820

2,567

2,965

7.3

8.0

38.8

54.3

13.3

9.5

1.9

1.6

14.4

16.8

0.4

Rane Brake Lining

Buy

282

366

224

454

511

11.1

11.4

23.8

28.1

11.9

10.1

1.7

1.5

14.2

15.3

0.6

Setco Automotive

Neutral

231

616

594

741

12.7

13.7

8.4

15.8

27.4

14.6

2.9

2.5

10.4

16.9

1.5

1.2

Tata Motors

Neutral

316

91,135

264,038

297,882

13.8

13.9

34.5

38.9

9.2

8.1

1.5

1.3

17.6

16.8

0.5

TVS Motor

Neutral

230

10,920

11,702

13,713

6.8

7.7

10.1

14.5

22.8

15.9

5.6

4.5

24.5

28.3

0.9

0.8

Amara Raja Batteries

Neutral

989

16,900

5,101

6,224

17.8

17.6

31.1

39.2

31.8

25.2

7.9

6.3

24.8

3.3

2.6

Exide Industries

Neutral

153

12,992

7,363

8,247

13.7

14.5

6.6

7.7

23.2

19.9

2.9

2.7

12.6

13.3

1.5

1.3

Apollo Tyres

Neutral

183

9,336

12,576

12,978

16.8

16.1

22.3

19.9

8.2

9.2

1.4

1.2

17.2

13.4

0.8

0.9

Ceat

Neutral

1,246

5,040

6,041

6,597

14.3

14.2

101.5

116.6

12.3

10.7

2.5

2.0

20.0

19.1

1.0

0.8

JK Tyres

Neutral

102

2,318

7,446

7,669

15.2

14.0

19.6

18.4

5.2

5.6

1.3

1.1

25.2

19.5

0.7

0.6

Swaraj Engines

Neutral

875

1,087

593

677

14.5

14.8

51.2

60.8

17.1

14.4

4.0

3.6

23.3

24.8

1.7

1.4

Subros

Neutral

474

1,268

1,488

11.6

11.9

3.7

6.6

21.4

12.0

1.4

1.3

6.8

11.4

0.7

0.6

Indag Rubber

Neutral

173

455

283

329

17.0

17.2

13.0

15.4

13.4

11.2

2.9

2.4

21.8

21.6

1.3

1.1

Capital Goods

ACE

Neutral

377

660

839

4.7

8.2

1.0

3.9

38.2

9.8

1.2

1.1

3.2

11.3

0.7

0.6

BEML

Neutral

1,234

5,139

3,277

4,006

6.0

8.9

29.2

64.3

42.3

19.2

2.4

2.1

5.7

11.7

1.7

1.3

BGR Energy

Neutral

106

764

3,615

3,181

9.5

9.4

16.7

12.4

6.3

8.5

0.6

10.0

7.0

0.6

0.8

BHEL

Neutral

202

49,356

33,722

35,272

10.8

11.7

10.5

14.2

19.2

14.2

1.4

1.3

7.0

9.0

1.5

Blue Star

Buy

331

387

2,979

3,649

4,209

5.0

5.9

9.2

14.7

36.2

22.5

6.5

6.2

9.1

17.5

0.9

0.8

Crompton Greaves

Buy

175

204

10,943

13,484

14,687

4.9

6.2

4.5

7.1

38.8

24.6

2.7

2.6

7.2

10.8

0.9

Inox Wind

Buy

363

505

8,066

4,980

5,943

17.0

17.5

26.6

31.6

13.7

11.5

4.1

3.0

35.0

30.0

1.8

1.4

www.angelbroking.com

Market Outlook

September 23, 2015

Stock Watch

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

KEC International

Neutral

144

3,693

8,791

9,716

6.1

6.8

5.4

8.2

26.6

17.5

2.7

2.4

10.0

14.0

0.6

Thermax

Neutral

897

10,687

6,413

7,525

7.4

8.5

30.5

39.3

29.4

22.8

4.5

3.9

15.0

17.0

1.6

1.4

Cement

ACC

Accumulate

1,353

1,548

25,406

11,856

14,092

14.5

17.8

47.6

76.1

28.4

17.8

2.9

2.7

10.6

15.7

2.0

1.6

Ambuja Cements

Accumulate

208

233

32,248

10,569

12,022

20.7

22.2

8.7

10.7

23.9

19.4

3.0

2.9

13.0

15.2

2.7

2.3

India Cements

Buy

112

2,287

4,716

5,133

15.9

16.9

3.7

7.5

20.1

9.9

0.7

3.8

7.3

0.8

0.7

JK Cement

Buy

611

767

4,272

4,056

4,748

14.5

17.0

22.6

41.1

27.0

14.9

2.4

2.2

9.3

15.3

1.5

1.2

J K Lakshmi Cement

Buy

371

430

4,368

2,947

3,616

16.7

19.9

11.5

27.2

32.3

13.7

3.1

2.6

9.8

20.8

1.9

1.5

Mangalam Cements

Neutral

232

618

1,053

1,347

10.5

13.3

8.4

26.0

27.6

8.9

1.2

1.1

4.3

12.5

1.0

0.7

Orient Cement

Buy

155

183

3,172

1,854

2,524

21.2

22.2

7.7

11.1

20.1

14.0

2.9

2.5

13.3

15.7

2.5

1.7

Ramco Cements

Accumulate

320

350

7,617

4,036

4,545

20.8

21.3

15.1

18.8

21.2

17.0

2.6

2.3

12.9

14.3

2.4

2.1

Shree Cement^

Neutral

11,966

41,685

7,150

8,742

26.7

28.6

228.0

345.5

52.5

34.6

7.7

6.5

15.7

20.3

5.6

4.5

UltraTech Cement

Buy

2,811

3,282

77,134

27,562

31,548

20.4

22.3

111.9

143.3

25.1

19.6

3.6

3.1

15.2

16.8

2.9

2.5

Construction

ITNL

Neutral

2,373

7,360

8,825

34.0

35.9

1.0

5.0

96.2

19.2

0.4

0.3

1.4

3.8

3.7

KNR Constructions

Neutral

546

1,535

915

1,479

14.3

13.9

20.3

37.2

26.9

14.7

2.5

2.1

9.6

15.6

1.8

1.1

Larsen & Toubro

Buy

1,484

2,013

138,147

68,920

82,446

10.9

11.5

57.0

73.0

26.0

20.3

2.4

2.2

13.6

15.5

2.2

1.8

Gujarat Pipavav Port

Neutral

178

8,610

721

784

53.1

53.6

8.2

9.1

21.7

19.6

3.5

2.8

20.0

18.3

11.5

10.2

MBL Infrastructures

Buy

245

360

1,017

2,313

2,797

12.2

14.6

19.0

20.0

12.9

12.3

1.3

1.2

11.3

10.6

1.1

1.0

Nagarjuna Const.

Neutral

3,917

7,892

8,842

8.3

9.1

2.4

5.3

29.4

13.3

1.2

1.1

4.2

8.6

0.7

0.6

PNC Infratech

Neutral

474

2,430

1,798

2,132

13.2

13.5

22.0

30.0

21.5

15.8

1.9

1.7

11.5

11.4

1.5

1.2

Simplex Infra

Neutral

272

1,348

6,241

7,008

10.4

10.7

20.0

36.0

13.6

7.6

1.1

1.0

6.8

11.1

0.7

0.6

Financials

Allahabad Bank

Neutral

4,334

8,438

9,521

2.8

21.9

27.0

3.5

2.8

0.4

0.3

10.2

11.5

Axis Bank

Buy

509

701

121,030

26,941

32,298

3.5

3.6

37.4

46.4

13.6

11.0

2.8

2.4

18.7

20.0

Bank of Baroda

Neutral

187

41,300

19,027

21,737

1.9

2.0

16.9

24.5

11.1

7.6

1.0

0.9

9.1

12.1

Bank of India

Neutral

137

9,096

16,438

18,706

1.9

2.0

19.2

40.9

7.1

3.3

0.4

0.3

4.5

9.1

Canara Bank

Neutral

274

14,124

15,491

17,269

2.0

61.6

70.9

4.5

3.9

0.5

0.4

10.5

11.1

Dena Bank

Neutral

2,188

3,498

3,977

2.1

2.3

7.8

10.7

5.0

3.7

0.4

0.3

6.5

8.4

Federal Bank

Neutral

10,910

3,527

4,135

3.0

3.1

5.2

6.7

12.2

9.5

1.3

1.2

10.8

12.7

HDFC

Neutral

1,168

184,098

10,883

12,799

3.5

3.4

43.0

50.6

27.2

23.1

5.4

4.9

25.9

26.7

HDFC Bank

Buy

1,028

1,255

258,653

38,059

46,851

4.4

4.5

50.0

62.7

20.6

16.4

3.6

3.1

18.8

20.2

www.angelbroking.com

Market Outlook

September 23, 2015

Stock Watch

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

Financials

ICICI Bank

Buy

271

370

157,176

35,810

41,871

3.4

3.5

22.0

26.2

12.3

10.3

2.2

1.8

15.0

15.6

IDBI Bank

Neutral

10,730

9,860

10,978

1.8

1.9

9.3

15.6

7.2

4.3

0.5

0.4

6.4

10.1

Indian Bank

Neutral

135

6,501

6,267

7,171

2.4

2.5

25.4

32.1

5.3

4.2

0.4

8.0

9.3

LIC Housing Finance

Buy

435

570

21,971

2,934

3,511

2.3

30.9

36.8

14.1

11.8

2.3

2.0

16.8

17.5

Oriental Bank

Neutral

131

3,927

7,730

8,595

2.4

2.5

38.8

47.4

3.4

2.8

0.3

8.6

9.8

Punjab Natl.Bank

Neutral

135

24,953

23,446

26,624

2.8

2.9

17.8

27.5

7.6

4.9

0.8

0.6

8.5

12.1

South Ind.Bank

Neutral

2,829

1,930

2,215

2.4

2.6

3.6

8.1

5.8

0.8

0.7

9.9

12.5

St Bk of India

Buy

238

307

180,000

83,847

96,307

2.8

20.1

25.1

11.8

9.5

1.3

1.1

11.5

13.1

Union Bank

Neutral

173

11,002

12,755

14,439

2.3

2.4

31.5

39.9

5.5

4.3

0.6

0.5

9.9

11.6

Vijaya Bank

Neutral

2,951

3,594

3,969

1.8

1.9

5.8

7.1

5.9

4.9

0.5

8.2

9.3

Yes Bank

Buy

733

953

30,691

7,204

9,078

3.2

57.8

69.5

12.7

10.6

2.3

1.9

19.6

22.6

FMCG

Asian Paints

Neutral

804

77,120

16,553

19,160

16.0

16.2

17.7

21.5

45.5

37.4

12.1

10.9

29.4

31.2

4.5

3.9

Britannia

Neutral

2,901

34,804

8,065

9,395

9.6

10.2

47.2

65.5

61.4

44.3

20.4

19.3

38.3

41.2

4.2

3.6

Colgate

Accumulate

1,924

2,022

26,170

4,836

5,490

19.5

19.7

48.5

53.2

39.7

36.2

29.1

25.3

99.8

97.5

5.3

4.7

Dabur India

Neutral

278

48,822

9,370

10,265

17.1

17.2

7.3

8.1

37.9

34.3

11.4

9.3

33.7

30.6

5.1

4.7

GlaxoSmith Con*

Neutral

5,994

25,207

4,919

5,742

17.2

17.4

168.3

191.2

35.6

31.4

10.1

8.6

28.8

28.9

4.7

4.0

Godrej Consumer

Neutral

1,175

40,018

10,168

12,886

16.1

32.1

38.4

36.6

30.6

7.4

6.9

19.7

21.0

4.0

3.2

HUL

Neutral

786

170,101

34,940

38,957

17.5

17.7

20.8

24.7

37.8

31.8

42.0

33.6

110.5

114.2

4.7

4.2

ITC

Buy

312

409

250,371

41,068

45,068

37.8

37.4

13.9

15.9

22.4

19.6

7.5

6.6

34.1

33.8

5.7

5.2

Marico

Neutral

395

25,452

6,551

7,766

15.7

16.0

10.4

12.5

38.0

31.6

11.0

9.2

33.2

32.4

3.8

3.2

Nestle*

Accumulate

6,141

6,646

59,204

11,291

12,847

22.2

22.3

158.9

184.6

38.6

33.3

20.2

18.2

55.0

57.3

5.1

4.4

Tata Global

Buy

124

152

7,813

8,635

9,072

9.8

9.9

6.5

7.6

19.1

16.3

1.9

1.8

6.8

7.4

0.8

HCL Tech^

Buy

942

1,132

132,458

42,038

47,503

23.5

56.4

62.9

16.7

15.0

3.9

3.0

23.2

19.8

2.8

2.2

Infosys

Buy

1,106

1,306

253,927

60,250

66,999

28.0

58.3

63.7

19.0

17.4

4.0

3.4

20.9

19.7

3.5

3.0

TCS

Buy

2,526

3,168

494,843

108,420

123,559

28.8

28.7

127.2

143.9

19.9

17.6

7.9

7.3

39.9

41.8

4.2

3.6

Tech Mahindra

Buy

558

646

53,643

25,566

28,890

16.0

17.0

26.3

31.9

21.2

17.5

3.8

3.3

17.9

18.6

1.9

1.6

Wipro

Buy

595

719

146,864

52,414

58,704

23.7

23.8

38.4

42.3

15.5

14.1

3.0

2.7

19.5

18.0

2.4

2.0

Media

D B Corp

Accumulate

314

356

5,766

2,241

2,495

27.8

27.9

21.8

25.6

14.4

12.3

3.8

3.3

26.7

28.5

2.5

2.3

HT Media

Neutral

1,888

2,495

2,603

11.2

7.3

8.6

11.1

9.4

0.9

0.8

7.4

8.1

0.3

0.2

www.angelbroking.com

Market Outlook

September 23, 2015

Stock Watch

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

Media

Jagran Prakashan

Accumulate

136

156

4,456

1,939

2,122

26.0

8.3

9.2

16.4

14.8

2.8

2.5

17.5

17.1

2.3

2.0

Sun TV Network

Neutral

360

14,185

2,779

3,196

70.2

70.5

22.8

27.3

15.8

13.2

3.9

3.5

26.7

28.3

4.9

4.2

Hindustan Media

Buy

223

292

1,639

920

1,031

20.0

19.2

20.9

11.6

10.7

1.9

1.6

16.4

15.3

1.3

1.2

Ventures

Metals & Mining

Coal India

Buy

324

400

204,555

72,015

78,415

21.2

21.5

21.7

25.3

14.9

12.8

5.1

5.0

33.1

39.1

2.1

1.9

Hind. Zinc

Neutral

134

56,662

15,258

16,495

44.2

45.6

17.6

19.2

7.6

7.0

1.2

1.1

15.9

15.3

1.4

1.0

Hindalco

Neutral

15,105

104,356

111,186

8.7

9.5

6.7

11.1

10.9

6.6

0.4

3.5

5.9

0.7

0.6

JSW Steel

Neutral

911

22,021

48,125

53,595

18.8

21.0

46.9

97.5

19.4

9.3

0.9

4.4

9.5

1.3

1.1

NMDC

Neutral

102

40,519

8,237

10,893

46.6

44.5

10.0

11.7

10.3

8.8

1.1

1.0

12.5

13.0

4.7

3.6

SAIL

Neutral

20,940

45,915

53,954

7.2

10.5

1.5

4.4

33.7

11.6

0.5

2.3

4.1

1.1

1.0

Vedanta

Neutral

27,379

71,445

81,910

26.2

26.3

12.9

19.2

7.2

4.8

0.5

0.4

7.2

8.9

0.8

0.6

Tata Steel

Neutral

220

21,367

136,805

149,228

11.3

11.9

26.4

36.8

8.3

6.0

0.7

0.6

6.0

8.0

0.7

0.6

Oil & Gas

Cairn India

Neutral

142

26,539

11,323

12,490

49.4

51.0

20.7

6.8

6.9

0.4

6.4

6.1

1.4

0.8

GAIL

Neutral

290

36,754

64,856

70,933

9.1

9.6

24.0

28.9

12.1

10.0

1.0

8.8

9.6

0.8

0.7

ONGC

Neutral

235

200,626

154,564

167,321

36.8

37.4

28.6

32.5

8.2

7.2

1.0

12.7

13.5

1.5

1.4

Petronet LNG

Buy

176

210

13,196

39,007

40,785

3.8

4.2

9.2

11.0

19.2

16.0

2.1

2.0

11.6

12.7

0.4

Indian Oil Corp

Buy

391

455

94,848

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

Reliance Industries

Accumulate

847

930

274,441

313,085

362,904

13.1

13.8

78.4

92.9

10.8

9.1

1.1

1.0

10.8

11.6

1.3

1.2

Pharmaceuticals

Alembic Pharma

Neutral

680

12,818

2,601

3,115

21.2

20.2

20.8

23.9

32.7

28.5

10.5

7.9

37.2

31.8

5.0

4.1

Aurobindo Pharma

Buy

716

872

41,806

14,923

17,162

23.0

38.2

43.6

18.7

16.4

5.8

4.3

36.0

30.2

3.1

2.7

Aventis*

Neutral

4,217

9,711

2,156

2,455

15.1

16.8

109.7

133.9

38.4

31.5

5.3

4.3

18.4

22.5

4.2

3.5

Cadila Healthcare

Neutral

1,937

39,663

10,224

11,840

20.0

21.0

71.0

85.6

27.3

22.6

7.3

5.8

30.1

28.5

3.9

3.3

Cipla

Neutral

643

51,652

14,359

16,884

21.3

19.7

28.4

30.5

22.7

21.1

4.0

3.4

19.3

17.5

3.6

3.0

Dr Reddy's

Accumulate

3,929

4,169

66,988

17,903

20,842

22.7

22.8

160.5

189.5

24.5

20.7

5.0

4.1

22.2

21.7

3.7

3.1

Dishman Pharma

Accumulate

264

290

2,131

1,716

1,888

20.2

16.3

21.6

16.2

12.2

1.5

1.4

9.7

11.7

1.4

1.2

GSK Pharma*

Neutral

3,353

28,403

2,870

3,158

20.0

22.1

59.5

68.3

56.4

49.1

16.6

17.1

28.5

34.3

9.4

8.6

Indoco Remedies

Neutral

328

3,023

1,088

1,262

18.2

13.1

15.5

25.0

21.2

4.9

4.1

21.2

21.1

2.8

2.5

Ipca labs

Accumulate

746

800

9,418

3,507

4,078

17.6

18.6

25.8

32.0

28.9

23.3

3.7

3.2

13.8

14.9

2.9

2.5

Lupin

Neutral

1,868

84,093

14,864

17,244

26.9

62.1

71.1

30.1

26.3

7.3

5.8

27.4

24.6

5.4

4.5

Sun Pharma

Accumulate

901

950

216,808

28,163

32,610

25.8

30.7

17.4

26.9

51.8

33.5

4.9

4.3

13.0

16.6

7.2

6.0

www.angelbroking.com

Market Outlook

September 23, 2015

Stock Watch

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

Power

Tata Power

Neutral

16,999

35,923

37,402

22.6

22.8

4.1

5.2

15.5

12.2

1.2

1.1

7.5

9.3

1.4

1.3

NTPC

Buy

121

157

99,605

87,064

98,846

23.5

11.7

13.2

10.3

9.2

1.2

1.1

11.4

12.1

2.2

1.9

Power Grid

Buy

131

170

68,455

20,702

23,361

86.7

86.4

12.1

13.2

10.8

9.9

1.6

1.4

15.6

15.1

8.2

7.7

Telecom

Bharti Airtel

Neutral

343

137,191

101,748

109,191

32.1

31.7

12.0

12.5

28.6

27.5

2.0

1.8

6.9

6.7

2.0

1.8

Idea Cellular

Neutral

143

51,561

34,282

36,941

32.0

31.5

5.9

6.2

24.3

23.1

2.2

2.0

9.9

9.3

2.1

2.0

zOthers

Abbott India

Neutral

5,829

12,386

2,715

3,153

14.5

14.1

134.3

152.2

43.4

38.3

10.8

8.9

27.4

25.6

4.3

3.6

Bajaj Electricals

Buy

250

341

2,524

4,719

5,287

5.2

5.8

8.6

12.7

29.2

19.8

3.3

2.9

11.4

14.8

0.5

Finolex Cables

Neutral

232

3,545

2,728

3,036

10.8

11.0

14.4

16.8

16.1

13.8

2.5

2.1

15.2

15.3

1.0

0.9

Goodyear India*

Buy

550

655

1,268

1,953

1,766

12.4

12.0

67.4

59.6

8.2

9.2

2.0

1.7

27.7

20.2

0.4

Hitachi

Neutral

1,318

3,584

1,806

2,112

9.0

9.2

28.6

29.1

46.1

45.3

11.5

9.2

28.1

22.6

2.1

1.8

Jyothy Laboratories

Neutral

313

5,673

1,620

1,847

11.5

7.3

8.5

43.0

37.0

5.6

5.2

13.3

14.4

3.4

2.9

MRF

Neutral

41,501

17,601

20,727

14,841

19.3

18.6

4,905.8

3,351.9

8.5

12.4

2.7

2.2

37.6

19.6

0.8

1.1

Page Industries

Neutral

12,988

14,486

1,929

2,450

19.8

20.1

229.9

299.0

56.5

43.4

24.9

17.3

52.1

47.1

7.5

5.9

Relaxo Footwears

Neutral

535

6,424

1,767

2,152

12.3

12.5

19.3

25.1

27.8

21.4

6.8

5.2

27.7

27.8

3.7

3.0

Siyaram Silk Mills

Buy

993

1,221

931

1,653

1,873

11.7

12.2

99.3

122.1

10.0

8.1

1.8

1.5

19.5

20.2

0.7

0.6

Styrolution ABS India*

Neutral

744

1,308

1,271

1,440

8.6

9.2

32.0

41.1

23.2

18.1

2.4

2.1

10.7

12.4

1.0

0.9

Tree House

Buy

354

449

1,498

259

324

56.8

17.0

21.7

20.8

16.3

2.1

1.9

10.1

11.5

5.7

4.7

TVS Srichakra

Buy

2,703

3,210

2,069

2,127

2,388

15.2

14.9

237.7

267.5

11.4

10.1

4.8

3.4

51.7

39.8

1.0

0.9

HSIL

Accumulate

265

302

1,914

2,182

2,404

16.3

16.5

15.8

18.9

16.8

14.0

1.4

1.3

8.4

9.4

1.2

1.1

Kirloskar Engines India

Neutral

305

4,406

2,634

3,252

10.1

12.0

10.9

17.4

27.9

17.5

3.1

2.8

11.4

16.8

1.3

1.0

Ltd

M M Forgings

Buy

559

797

674

563

671

22.1

22.9

51.0

66.5

11.0

8.4

2.3

1.8

23.1

24.1

1.4

1.1

Banco Products (India)

Neutral

119

848

1,208

1,353

11.0

12.3

10.8

14.5

11.0

8.2

1.3

1.1

11.9

14.5

0.7

0.6

Competent Automobiles Neutral

147

1,007

1,114

3.1

23.7

28.2

6.2

5.2

0.9

0.8

13.9

14.6

0.1

Nilkamal

Accumulate

934

1,005

1,394

1,948

2,147

10.6

10.3

60.0

67.0

15.6

13.9

2.4

2.1

16.8

16.1

0.8

0.7

Visaka Industries

Buy

126

166

199

1,158

1,272

8.6

9.5

23.7

32.7

5.3

3.8

0.5

10.1

12.5

0.3

Transport Corporation of

Buy

240

293

1,829

2,830

3,350

8.8

9.0

14.4

18.3

16.7

13.1

2.6

2.2

15.4

17.1

0.8

0.7

India

Elecon Engineering

Buy

754

1,452

1,596

14.0

14.7

4.4

6.2

15.7

11.1

1.3

1.2

8.6

11.2

0.8

0.7

Surya Roshni

Buy

123

183

540

2,992

3,223

8.3

8.5

14.7

18.3

8.4

6.7

0.8

0.7

9.8

11.0

0.5

0.4

MT Educare

Buy

126

169

502

286

366

18.3

17.7

7.7

9.4

16.3

13.5

3.4

3.0

20.2

21.1

1.7

1.2

www.angelbroking.com

Market Outlook

September 23, 2015

Stock Watch

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

Radico Khaitan

Buy

112

1,122

1,565

1,687

11.9

12.4

5.4

6.6

15.6

12.8

1.3

1.2

8.0

9.0

1.2

Garware Wall Ropes

Buy

316

390

692

875

983

10.4

10.6

23.1

27.8

13.7

11.4

1.9

1.7

14.1

14.8

0.8

0.7

Wonderla Holidays

Buy

278

322

1,571

206

308

44.0

43.6

9.0

12.9

30.9

21.6

4.2

3.8

13.7

17.8

7.5

5.0

Linc Pen & Plastics

Buy

152

185

224

340

371

8.3

8.9

10.8

13.2

14.0

11.5

2.2

2.0

16.0

17.1

0.7

0.6

The Byke Hospitality

Accumulate

159

181

639

222

287

20.5

5.6

7.6

28.3

21.1

5.3

4.4

18.9

20.8

2.9

2.2

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on September 22, 2015

www.angelbroking.com

Market Outlook

September 23, 2015

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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