Market Outlook
April 04, 2018
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open flat tracking global indices and SGX Nifty.
BSE Sensex
0.3
115
33,370
U.S. stocks showed a strong move back to the upside during last trading session.
Nifty
0.3
33
10,245
The major averages initially showed a lack of direction but climbed firmly into
Mid Cap
1.4
224
16,186
positive territory as the day progressed. The Dow Jones jumped up by 1.7% to close
Small Cap
2.4
400
17,394
at 24,033. The NASDAQ ended up by 1.0% to close at 6,941.
Bankex
(0.4)
(100)
27,098
U.K. stocks opened lower as traders returned to their desks after a long Easter
holiday weekend. The FTSE 100 was down by 0.7% to end at 7,005.
Global Indices
Chg (%)
(Pts)
(Close)
On domestic front, Indian shares ended a choppy session slightly higher even as
Dow Jones
1.7
389
24,033
global markets succumbed to selloff amid jitters about U.S.-Chinese trade tensions
Nasdaq
1.0
71
6,941
and mounting public scrutiny of technology companies. The BSE Sensex ended up by
FTSE
0.7
(50)
7,005
0.4% at 33,370.
Nikkei
(0.3)
(66)
21,389
News Analysis
Hang Seng
0.2
71
30,093
JLR India plans to roll out 10 new products, reports 83% rise in FY18 sales
Shanghai Com
(0.2)
(6)
3,163
Detailed analysis on Pg2
Advances / Declines
BSE
NSE
Investor’s Ready Reckoner
Advances
1,859
1,493
Key Domestic & Global Indicators
Declines
804
312
Stock Watch: Latest investment recommendations on 150+ stocks
Unchanged
142
55
Refer Pg5 onwards
Top Picks
Volumes (` Cr)
CMP
Target
Upside
Company
Sector
Rating
BSE
2,711
(`)
(`)
(%)
Blue Star
Capital Goods Accumulate
795
867
9.1
NSE
28,252
Dewan Housing Finance
Financials
Buy
534
720
34.9
Century Plyboards
Forest Product
Buy
326
400
22.5
Net Inflows (` Cr)
Net
Mtd
Ytd
Navkar Corporation
Others
Buy
176
265
50.9
FII
1,094
13,372
13,865
KEI Industries
Capital Goods Accumulate
421
460
9.3
*MFs
2,235
7,538
32,742
More Top Picks on Pg4
Key Upcoming Events
Top Gainers
Price (`)
Chg (%)
Previous
Consensus
Date
Region
Event Description
ReadingExpectations
DELTACORP
276
13.2
Apr 05, 2018 Germany PMI Services
54.20
54.20
HCC
25
9.9
Apr 05, 2018 US
Initial Jobless claims
215.00
225.00
IBVENTUREPP
93
8.8
Apr 05, 2018 India
RBI Reverse Repo rate
5.75
5.75
ADVENZYMES
238
8.4
Apr 05, 2018 US
Change in Nonfarm payrolls
313.00
185.00
Apr 05, 2018 India
RBI Repo rate
6.00
6.00
BAJAJELEC
622
8.1
More Events on Pg7
Top Losers
Price (`)
Chg (%)
VAKRANGEE
200
-5.0
TECHM
617
-3.7
GPPL
142
-2.9
KAJARIACER
574
-2.7
BAJAJCORP
462
-2.5
As on April 02, 2018
Market Outlook
April 04, 2018
News Analysis
JLR India plans to roll out 10 new products, reports 83% rise in FY18
sales
Tata Motors-owned Jaguar Land Rover plans to bring 10 new products in India in
2018-19, riding high on 83 per cent jump in sales in the last financial year. JLR
India completed 2017-18 with a total sales of 4,609 units against 2,514 units in
the previous financial year. The company's new products such as the fifth-
generation all-new Land Rover Discovery and the New Range Rover Velar have
been received very well in the market. The new products could be facelifts or
model year changes. The new products lined up for introduction during the year
will also help the company maintain sales momentum; however, adding it would
be difficult to achieve very high double-digit growth due to increase in prices the
following hike in customs duty in the Budget.
Economic and Political News
CAG flags under-realization of administration charges of Rs 61.7mn by
EPFO
CBDT directs I-T dept to finish issuing note ban notices in two months
UIDAI unfurls beta version of Virtual ID; can be used in place of Aadhaar
Corporate News
Merrill Lynch sells 2% stake in Indiabulls Housing Finance for Rs 9.82bn
Zensar bags four-year deal worth $79mn from San Diego for network
services
Lloyd to increase its presence in UP, will open 30 showrooms by 2020
Royal Enfield to invest Rs 8bn in 2018-19, to expand production capacity
Market Outlook
April 04, 2018
Top Picks
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
Strong growth in domestic business due to its
leadership in acute therapeutic segment. Alkem
Alkem Laboratories
22,800
1,907
2,441
28.0
expects to launch more products in USA, which
bodes for its international business.
Favorable outlook for the AC industry to augur well
for Cooling products business which is out pacing
Blue Star
7,632
795
867
9.1
the 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
16,737
534
720
34.9
presence in tier-II & III cities where the growth
opportunity is immense.
Well capitalized with CAR of 18.1% which gives
sufficient room to grow asset base. Faster resolution
ICICI Bank
1,73,289
270
416
54.3
of NPA would reduce provision cost, which would
help to report better ROE.
High order book execution in EPC segment, rising
KEI Industries
3,299
421
460
9.3
B2C sales and higher exports to boost the revenues
and profitability
Expected to benefit from the lower capex
Music Broadcast Limited
2,239
393
475
21.0
requirement and 15 year long radio broadcast
licensing.
Massive capacity expansion along with rail
Navkar Corporation
2,644
176
265
50.9
advantage at ICD as well CFS augur well for the
company
Strong brands and distribution network would boost
Siyaram Silk Mills
2,913
622
851
36.9
growth going ahead. Stock currently trades at an
inexpensive valuation.
Market leadership in Hindi news genre and no. 2
viewership ranking in English news genre, exit from
TV Today Network
2,964
497
603
21.4
the radio business, and anticipated growth in ad
spends by corporate to benefit the stock.
After GST, the company is expected to see higher
volumes along with improving product mix. The
Maruti
2,72,591
9,024
10,619
17.7
Gujarat plant will also enable higher operating
leverage which will be margin accretive.
We expect loan book to grow at 24.3% over next
GIC Housing
2,070
384
655
70.4
two year; change in borrowing mix will help in NIM
improvement
We expect CPIL to report net Revenue/PAT CAGR of
~17%/16% over FY2017-20E mainly due to
Century Plyboards
7,253
326
400
22.5
healthy growth in plywood & lamination business,
forayed into MDF & Particle boards on back of
strong brand & distribution network.
We expect sales/PAT to grow at 13.5%/20% over
LT Foods
2,885
90
128
41.9
next two years on the back of strong distribution
network & addition of new products in portfolio.
Third largest brand play in luggage segment
Increased product offerings and improving
Safari Industries
1,191
535
650
21.5
distribution network is leading to strong growth in
business. Likely to post robust growth for next 3-4
years
We expect HSIL to report PAT CAGR of ~15% over
FY2017-20E owing to better improvement in
HSIL Ltd
2,887
399
510
27.7
operating margin due price hike in container glass
segment, turnaround in consumer business.
We expect financialisation of savings and increasing
Aditya Birla Capital
32,144
152
230
33.9
penetration in Insurance & Mutual fund would
ensure steady growth.
Source: Company, Angel Research
Market Outlook
April 04, 2018
Fundamental Call
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
CCL is likely to maintain the strong growth trajectory
CCL Products
3,767
283
360
27.1
over FY18-20 backed by capacity expansion and new
geographical foray
We forecast Nilkamal to report top-line CAGR of ~9%
to `2,635cr over FY17-20E on the back of healthy
Nilkamal
2,409
1,614
2,178
34.9
demand growth in plastic division. On the bottom-line
front, we estimate ~10% CAGR to `162cr owing to
improvement in volumes.
The prism has diversified exposure in the different
segment such as Cement, Tile & ready mix concrete.
Prism Cement
5,879
117
160
37.0
Thus we believe, PCL is in the right place to capture
ongoing government spending on affordable housing
and infrastructure projects.
Elantas Beck India is the Indian market leader in liquid
insulation segment used in electrical equipments like
Elantas Beck India Ltd
1,647
2,078
2,500
20.3
motors, transformers etc. It derives demand from
several industries which are expected to register 10%+
CAGR in demand in the coming years.
Greenply Industries Ltd (GIL) manufactures plywood &
allied products and medium density fibreboards
(MDF). GIL to report net revenue CAGR of ~14% to
Greenply Industries
3,861
315
395
25.5
~`2,478cr over FY2017-20E mainly due to healthy
growth in plywood & lamination business on the back
of strong brand and distribution network
Source: Company, Angel Research
