Market Outlook

June 6, 2017

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian markets are likely to open on Positive note tracking the SGX Nifty.

BSE Sensex

0.1

31,309

U.S. markets closed lower Monday, slightly below record levels, as investors

Nifty

0.2

9,675

grappled with a variety of geopolitical issues, such as terrorist attacks in London

Mid Cap

0.2

14,824

ahead of the U.K. election and the scheduled public testimony of fired Federal

Small Cap

0.6

15,410

Bureau of Investigation Director James Comey.

Bankex

0.4

26,593

The European markets ended the first session of the new trading week with modest

losses. Investors were in a cautious mood following the latest terrorist attack in

Global Indices

Chg (%)

(Pts)

(Close)

London over the weekend. Some markets also remained closed for a holiday

Monday, including the DAX of Germany and the SMI of Switzerland.

Dow Jones

(0.1)

(22)

21,184

Nasdaq

(0.2)

(10)

6,296

Indian markets eked out modest gains to hit fresh record closing highs on Monday

FTSE

(0.3)

(22)

7,526

even as underlying sentiment remained cautious elsewhere Asia and Europe after a

Nikkei

(0.0)

(6)

20,171

U.S. jobs report failed to meet expectations and Islamic terrorism once again stuck

the United Kingdom, killing at least seven people and injuring 48 more.

Hang Seng

(0.2)

(61)

25,863

Shanghai Com

(0.4)

(14)

3,092

News Analysis

 ITC to expand frontiers with foray into fruits, veggies

Advances / Declines

BSE

NSE

Detailed analysis on Pg2

Advances

1,451

934

Investor’s Ready Reckoner

Declines

1,270

748

Key Domestic & Global Indicators

Unchanged

161

104

Stock Watch: Latest investment recommendations on 150+ stocks

Refer Pg5 onwards

Volumes (` Cr)

Top Picks

BSE

3,013

CMP

Target

Upside

Company

Sector

Rating

NSE

20,992

(`)

(%)

Blue Star

Capital Goods

Buy

643

760

18.3

Dewan Housing Fin. Financials

Buy

431

520

20.7

#Net Inflows (` Cr)

Net

Mtd

Ytd

Mahindra Lifespace Real Estate

Buy

424

522

23.0

FII

(451)

51,518

Navkar Corporation Others

Buy

217

265

22.3

MFs

449

8,960

29,642

KEI Industries

Capital Goods

Accumulate

218

239

9.4

More Top Picks on Pg3

Top Gainers

Price (`)

Chg (%)

Key Upcoming Events

Titan

552

17.0

Consensus

Date

Region

Event Description

Tataelxsi

1,492

9.8

Reading

Expectations

Jun 07, 2017 India

RBI Reverse Repo rate

6.00

Pcjeweller

550

9.4

Jun 07, 2017 India

RBI Cash Reserve ratio

4.00

Raymond

752

6.9

Jun 07, 2017 India

RBI Repo rate

6.25

Unitdspr

2,482

5.9

Jun 08, 2017 US

Initial Jobless claims

248.00

240.00

Jun 08, 2017 Euro Zone ECB announces interest rates

Top Losers

Price (`)

Chg (%)

Jun 08, 2017 Euro Zone Euro-Zone GDP s.a. (QoQ)

0.50

More Events on Pg4

Videoind

(4.9)

Marksans

(4.4)

Sintex

(4.1)

Kpit

112

(4.0)

M&Mfin

373

(4.0)

#as on 5^th June, 2017

www.angelbroking.com

Market Outlook

June 6, 2017

News Analysis

ITC to expand frontiers with foray into fruits, veggies

ITC would sell premium fruits and vegetables and pricey processed foods,

competing directly with existing retailers and new age grocers such as Amazon

Fresh, hastening its transformation into one of India’s most diversified consumer

companies from just the country’s biggest cigarette maker. At the core of ITC’s

initiatives to expand beyond snack foods is an elaborate distribution network,

underpinning a wider product portfolio at the century-old giant: Seeking to

strengthen its `10,000cr diversified consumer business, ITC plans to build a

retailing presence rivaling that of Mother Dairy.

ITC’s consumer business, which includes packaged food, personal care and

educational stationery products, crossed `10,000cr in revenues in 2016-17,

registering sales growth of 8% to `10,512cr. As per ITC, the company is now

among the fastest-growing branded packaged foods businesses in the country.

ITC will also sell online, starting with BigBasket and other existing online channels

by next quarter. The profitability of ITC’s consumer goods businesses declined 72

per cent last year to `28cr. The company attributed the contraction to higher input

prices, gestation costs of relatively newer categories such as juices and dairy, and

sales disruption because of demonetization

Economic and Political News

 Two-wheeler industry to grow 8-10% in FY18; note ban pangs warning: Icra

 Govt considers further relaxation in FDI norms for defence sector

 PM Modi reviews GST ahead of July 1 rollout

Corporate News

 Tata Motors' ED Ravindra Pisharody steps down; Satish Borwankar new COO

 Applications for H-1B visas drop as TCS increases local hiring in US

 Aban Offshore's receivables from Iran dip $36 mn after lifting of sanctions

 Jet Airways in talks to buy 75 aircraft: Sources

www.angelbroking.com

Market Outlook

June 6, 2017

Top Picks HHHHH

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

23,358

1,954

2,161

10.6

more products in USA, which bodes for its international

business.

We expect the company would report strong profitability

Asian Granito

1,205

400

405

1.2

owing to better product mix, higher B2C sales and

amalgamation synergy..

Favourable outlook for the AC industry to augur well for

Cooling products business which is out pacing the market

Blue Star

6,143

643

760

18.3

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

13,498

431

520

20.7

presence in tier-II & III cities where the growth opportunity

is immense.

Strong loan growth backed by diversified loan portfolio

and adequate CAR. ROE & ROA likely to remain decent

Equitas Holdings

5,411

160

235

46.8

as risk of dilution remains low. Attractive valuations

considering growth.

Economic recovery to have favourable impact on

advertising & circulation revenue growth. Further, the

Jagran Prakashan

5,960

182

225

23.4

acquisition of a radio business (Radio City) would also

boost the company's revenue growth.

High order book execution in EPC segment, rising B2C

KEI Industries

1,697

218

239

9.4

sales and higher exports to boost the revenues and

profitability

Speedier execution and speedier sales, strong revenue

Mahindra Lifespace

2,178

424

522

23.0

visibilty in short-to-long run, attractive valuations

Massive capacity expansion along with rail advantage at

Navkar Corporation

3,091

217

265

22.3

ICD as well CFS augurs well for the company

Market leadership in Hindi news genre and no.

viewership ranking in English news genre, exit from the

TV Today Network

1,598

268

344

28.4

radio business, and anticipated growth in ad spends by

corporates to benefit the stock.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

June 6, 2017

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

10.0

9.2

10.0

8.9

9.0

8.3

8.4

9.0

8.0

7.7

7.9

8.0

7.6

7.5

8.0

7.4

7.0

6.8

5.7

7.0

6.0

5.2

4.9

6.0

6.1

6.0

5.0

3.8

4.0

2.6

2.7

5.0

3.0

1.9

4.0

2.0

1.0

3.0

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

(%)

7.0

54.0

6.1

5.8

6.0

52.0

5.1

5.0

4.3

4.2

50.0

3.9

3.6

3.7

4.0

3.4

3.2

3.0

48.0

3.0

46.0

2.0

44.0

1.0

42.0

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

7.00

50.0

6.50

40.0

6.00

30.0

5.50

20.0

5.00

10.0

4.50

0.0

4.00

(10.0)

(20.0)

3.50

(30.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Stock Watch

June 06, 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 )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Agri / Agri Chemical

Rallis

Neutral

252

4,892

1,937

2,164

13.3

14.3

9.0

11.0

28.0

22.9

4.9

4.3

18.4

19.8

2.6

2.3

United Phosphorus

Neutral

873

44,321

15,176

17,604

18.5

37.4

44.6

23.3

19.6

4.6

3.8

21.4

21.2

3.0

2.6

Auto & Auto Ancillary

Amara Raja Batteries

Buy

877

1,009

14,982

5,305

6,100

16.0

16.3

28.4

34.0

30.9

25.8

6.0

5.0

19.3

2.8

2.5

Apollo Tyres

Neutral

248

12,629

12,877

14,504

14.3

13.9

21.4

23.0

11.6

10.8

1.8

1.6

16.4

15.2

1.1

Ashok Leyland

Buy

111

26,467

20,021

21,915

11.6

11.9

4.5

5.3

20.7

17.5

4.2

3.8

20.6

21.5

1.3

1.1

Bajaj Auto

Neutral

2,901

83,937

25,093

27,891

19.5

19.2

143.9

162.5

20.2

17.9

5.7

4.9

30.3

29.4

3.1

2.7

Bharat Forge

Neutral

1,186

27,601

7,726

8,713

20.5

21.2

35.3

42.7

33.6

27.8

6.2

5.6

18.9

20.1

3.6

3.2

Ceat

Neutral

1,870

7,564

7,524

8,624

13.0

12.7

131.1

144.3

14.3

13.0

2.6

2.2

19.8

18.6

1.1

0.9

Eicher Motors

Neutral

29,326

79,830

16,583

20,447

17.5

18.0

598.0

745.2

49.0

39.4

16.8

12.8

41.2

38.3

4.6

3.7

Exide Industries

Neutral

227

19,325

7,439

8,307

15.0

8.1

9.3

28.1

24.5

3.9

3.5

14.3

16.7

2.2

2.0

Gabriel India

Neutral

137

1,974

1,544

1,715

9.0

9.3

5.4

6.3

25.4

21.8

4.8

4.3

18.9

19.5

1.2

1.1

Hero Motocorp

Neutral

3,827

76,418

28,083

30,096

15.3

15.7

171.8

187.0

22.3

20.5

7.8

6.5

30.1

27.9

2.5

2.3

Indag Rubber

Neutral

207

542

286

326

19.8

16.8

11.7

13.3

17.7

15.5

3.0

2.8

17.8

17.1

1.6

1.4

Jamna Auto Industries

Neutral

264

2,102

1,486

1,620

9.8

9.9

15.0

17.2

17.6

15.3

3.9

3.3

21.8

21.3

1.5

1.3

JK Tyres

Neutral

176

3,989

7,455

8,056

15.0

21.8

24.5

8.1

7.2

1.7

1.4

22.8

21.3

0.7

0.6

L G Balakrishnan & Bros Neutral

737

1,157

1,302

1,432

11.6

11.9

43.7

53.0

16.9

13.9

2.4

2.2

13.8

14.2

1.0

0.9

Mahindra and Mahindra Neutral

1,423

88,409

46,534

53,077

11.6

11.7

67.3

78.1

21.2

18.2

3.4

3.0

15.4

15.8

1.9

1.6

Maruti

Neutral

7,127

215,280

67,822

83,288

16.0

16.4

253.8

312.4

28.1

22.8

6.5

5.2

23.0

22.9

2.8

2.2

Minda Industries

Neutral

626

5,408

2,728

3,042

9.0

9.1

68.2

86.2

9.2

7.3

2.1

1.7

23.8

24.3

2.0

1.8

Motherson Sumi

Neutral

455

63,805

45,896

53,687

7.8

8.3

13.0

16.1

34.9

28.2

11.2

9.0

34.7

35.4

1.5

1.2

Rane Brake Lining

Neutral

1,274

1,008

511

562

11.3

11.5

28.1

30.9

45.3

41.2

6.9

6.3

15.3

15.0

2.1

1.9

Setco Automotive

Neutral

538

741

837

13.0

15.2

17.0

2.7

2.4

0.4

15.8

16.3

1.1

1.0

Subros

Neutral

261

1,565

1,488

1,681

11.7

11.9

6.4

7.2

40.8

36.4

4.3

3.9

10.8

11.4

1.3

1.1

Swaraj Engines

Neutral

1,907

2,368

660

810

15.2

16.4

54.5

72.8

35.0

26.2

10.9

9.9

31.5

39.2

3.4

2.8

Tata Motors

Neutral

478

138,015

300,209

338,549

8.9

8.4

42.7

54.3

11.2

8.8

1.8

1.5

15.6

17.2

0.6

0.5

TVS Motor

Neutral

542

25,757

13,390

15,948

6.9

7.1

12.8

16.5

42.5

32.8

10.6

8.4

26.3

27.2

2.0

1.6

Capital Goods

ACE

Neutral

656

709

814

4.1

4.6

1.4

2.1

47.4

31.6

2.0

1.8

4.4

6.0

1.1

1.0

BEML

Neutral

1,239

5,158

3,451

4,055

6.3

9.2

31.4

57.9

39.5

21.4

2.4

2.2

6.3

10.9

1.6

1.4

BGR Energy

Neutral

161

1,159

16,567

33,848

6.0

5.6

7.8

5.9

20.6

27.2

1.2

1.1

4.7

4.2

0.2

0.1

www.angelbroking.com

Stock Watch

June 06, 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 )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Capital Goods

Bharat Electronics

Neutral

170

37,972

8,137

9,169

16.8

17.2

58.7

62.5

2.9

2.7

0.5

0.4

44.6

46.3

3.6

3.3

BHEL

Neutral

140

34,205

28,797

34,742

2.8

2.3

6.9

60.8

20.3

1.0

1.3

4.8

0.8

0.6

Blue Star

Buy

643

760

6,143

4,283

5,077

5.9

7.3

14.9

22.1

43.2

29.0

8.4

7.1

20.4

26.4

1.5

1.2

CG Power and Industrial

Neutral

5,299

5,777

6,120

5.9

7.0

3.3

4.5

25.6

18.8

1.1

4.4

5.9

0.9

0.7

Solutions

Greaves Cotton

Neutral

160

3,901

1,755

1,881

16.8

16.9

7.8

8.5

20.5

18.8

4.1

3.8

20.6

20.9

1.9

1.7

Inox Wind

Neutral

142

3,159

5,605

6,267

15.7

16.4

24.8

30.0

5.7

4.8

1.6

1.2

25.9

24.4

0.6

0.5

KEC International

Neutral

266

6,844

9,294

10,186

7.9

8.1

9.9

11.9

26.9

22.4

3.9

3.4

15.6

16.3

1.0

0.9

KEI Industries

Accumulate

218

239

1,697

2,682

3,058

10.4

10.0

11.7

12.8

18.6

17.0

3.7

3.1

20.1

18.2

0.8

0.7

Thermax

Neutral

977

11,646

5,421

5,940

7.3

25.7

30.2

38.0

32.4

4.6

4.2

12.2

13.1

2.0

1.9

VATech Wabag

Neutral

678

3,701

3,136

3,845

8.9

9.1

26.0

35.9

26.1

18.9

3.3

2.8

13.4

15.9

1.1

0.9

Voltas

Neutral

495

16,379

6,511

7,514

7.9

8.7

12.9

16.3

38.4

30.4

6.9

6.1

16.7

18.5

2.3

1.9

Cement

ACC

Neutral

1,645

30,884

11,225

13,172

13.2

16.9

44.5

75.5

37.0

21.8

3.5

3.2

11.2

14.2

2.8

2.3

Ambuja Cements

Neutral

240

47,655

9,350

10,979

18.2

22.5

5.8

9.5

41.4

25.3

3.5

3.1

10.2

12.5

5.1

4.3

India Cements

Neutral

214

6,581

4,364

4,997

18.5

19.2

7.9

11.3

27.1

19.0

2.0

1.9

8.0

8.5

2.3

2.0

J K Lakshmi Cement

Neutral

498

5,858

2,913

3,412

14.5

19.5

7.5

22.5

66.4

22.1

4.1

3.4

12.5

18.0

2.6

2.2

JK Cement

Neutral

1,091

7,630

4,398

5,173

15.5

17.5

31.2

55.5

35.0

19.7

4.2

3.6

12.0

15.5

2.3

1.9

Orient Cement

Neutral

154

3,155

2,114

2,558

18.5

20.5

8.1

11.3

19.0

13.6

2.8

2.4

9.0

14.0

2.1

1.7

UltraTech Cement

Neutral

4,189

114,985

25,768

30,385

21.0

23.5

111.0

160.0

37.7

26.2

4.8

4.2

13.5

15.8

4.6

3.8

Construction

Engineers India

Neutral

159

10,704

1,725

1,935

16.0

19.1

11.4

13.9

11.4

1.9

13.4

15.3

5.1

4.6

Gujarat Pipavav Port

Neutral

147

7,126

705

788

52.2

51.7

5.0

5.6

29.5

26.3

2.9

2.6

11.2

9.8

8.2

ITNL

Neutral

102

3,339

8,946

10,017

31.0

31.6

8.1

9.1

12.5

11.2

0.5

4.2

5.0

3.7

3.4

KNR Constructions

Neutral

211

2,966

1,385

1,673

14.7

14.0

41.2

48.5

5.1

4.4

1.0

0.8

14.9

15.2

2.2

1.8

Larsen & Toubro

Neutral

1,805

168,423

111,017

124,908

11.0

61.1

66.7

29.5

27.0

3.6

3.3

13.1

12.9

2.6

2.3

MEP Infra

Neutral

1,500

1,877

1,943

30.6

29.8

3.0

4.2

30.8

22.0

14.9

10.0

0.6

2.2

2.0

Nagarjuna Const.

Neutral

4,845

8,842

9,775

9.1

8.8

5.3

6.4

16.4

13.6

1.3

1.2

8.2

9.1

0.7

0.6

NBCC

Neutral

201

18,104

7,428

9,549

7.9

8.6

8.2

11.0

24.5

18.3

1.2

1.0

28.2

28.7

2.2

1.6

PNC Infratech

Neutral

146

3,751

2,350

2,904

13.1

13.2

9.0

8.8

16.2

16.6

0.6

0.5

15.9

13.9

1.7

1.4

Power Mech Projects

Neutral

587

864

1,801

2,219

12.7

14.6

72.1

113.9

8.1

5.2

1.5

1.3

16.8

11.9

0.5

0.4

Sadbhav Engineering

Neutral

317

5,430

3,598

4,140

10.3

10.6

9.0

11.9

35.2

26.6

3.7

3.2

9.9

11.9

1.8

1.5

www.angelbroking.com

Stock Watch

June 06, 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 )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Construction

Simplex Infra

Neutral

465

2,299

6,829

7,954

10.5

31.4

37.4

14.8

12.4

1.5

1.4

9.9

13.4

0.8

0.6

SIPL

Neutral

109

3,823

1,036

1,252

65.5

66.2

(8.4)

(5.6)

4.1

4.6

(22.8)

(15.9)

11.9

9.9

Financials

Axis Bank

Accumulate

513

580

122,965

46,932

53,575

3.5

3.4

32.4

44.6

15.9

11.5

2.0

1.8

13.6

16.5

Bank of Baroda

Neutral

179

41,198

19,980

23,178

1.8

11.5

17.3

15.6

10.3

1.8

1.5

8.3

10.1

Can Fin Homes

Neutral

2,776

7,390

420

526

3.5

86.5

107.8

32.1

25.8

6.9

5.7

23.6

24.1

Canara Bank

Neutral

363

21,673

15,225

16,836

1.8

14.5

28.0

25.0

13.0

1.7

1.4

5.8

8.5

Cholamandalam Inv. &

Buy

1,046

1,230

16,353

2,012

2,317

6.3

42.7

53.6

24.5

19.5

3.9

3.3

16.9

18.3

Fin. Co.

Dewan Housing Finance Buy

431

520

13,498

2,225

2,688

2.9

29.7

34.6

14.5

12.5

2.3

1.5

16.1

14.8

Equitas Holdings

Buy

160

235

5,411

939

1,281

11.7

11.5

5.8

8.2

27.6

19.5

2.4

2.1

10.9

11.5

Federal Bank

Accumulate

114

125

19,674

8,259

8,995

3.0

4.3

5.6

26.5

20.4

2.2

2.1

8.5

10.1

HDFC

Neutral

1,606

255,245

11,475

13,450

3.4

45.3

52.5

35.5

30.6

6.8

6.0

20.2

20.5

HDFC Bank

Neutral

1,636

420,194

46,097

55,433

4.5

58.4

68.0

28.0

24.1

4.9

4.1

18.8

18.6

ICICI Bank

Neutral

320

186,283

42,800

44,686

3.1

3.3

18.0

21.9

17.8

14.6

2.4

2.2

11.1

12.3

Karur Vysya Bank

Accumulate

127

140

7,675

5,640

6,030

3.3

3.2

8.9

10.0

14.3

12.7

1.5

1.4

11.2

11.4

Lakshmi Vilas Bank

Neutral

189

3,620

3,339

3,799

2.7

2.8

11.0

14.0

17.2

13.5

1.8

1.6

11.2

12.7

LIC Housing Finance

Neutral

739

37,277

3,712

4,293

2.6

2.5

39.0

46.0

18.9

16.1

3.6

3.0

19.9

20.1

Punjab Natl.Bank

Neutral

153

32,622

23,532

23,595

2.3

2.4

6.8

12.6

22.5

12.2

3.5

2.5

3.3

6.5

RBL Bank

Neutral

544

20,446

1,783

2,309

2.6

12.7

16.4

42.8

33.1

4.7

4.2

12.8

13.3

Repco Home Finance

Accumulate

779

825

4,870

388

457

4.5

4.2

30.0

38.0

26.0

20.5

4.3

3.6

18.0

19.2

South Ind.Bank

Neutral

5,140

6,435

7,578

2.5

2.7

3.1

10.6

9.2

1.4

1.1

10.1

11.2

St Bk of India

Neutral

287

233,037

88,650

98,335

2.6

13.5

18.8

21.3

15.3

2.0

1.8

7.0

8.5

Union Bank

Neutral

160

11,030

13,450

14,925

2.3

25.5

34.5

6.3

4.7

0.9

0.8

7.5

10.2

Yes Bank

Neutral

1,520

69,460

8,978

11,281

3.3

3.4

74.0

90.0

20.5

16.9

3.9

3.3

17.0

17.2

FMCG

Akzo Nobel India

Neutral

1,788

8,575

2,955

3,309

13.3

13.7

57.2

69.3

31.3

25.8

10.2

8.6

32.7

33.3

2.7

2.4

Asian Paints

Neutral

1,162

111,464

17,128

18,978

16.8

16.4

19.1

20.7

60.8

56.1

21.2

20.0

34.8

35.5

6.4

5.8

Britannia

Neutral

3,639

43,671

9,594

11,011

14.6

14.9

80.3

94.0

45.3

38.7

18.6

14.4

41.2

4.4

3.8

Colgate

Neutral

1,021

27,760

4,605

5,149

23.4

23.8

26.9

42.9

37.9

23.7

18.6

64.8

66.8

6.0

5.3

Dabur India

Accumulate

286

304

50,371

8,315

9,405

19.8

20.7

8.1

9.2

35.3

31.1

9.8

8.2

31.6

31.0

5.7

5.0

GlaxoSmith Con*

Neutral

5,406

22,737

4,350

4,823

21.2

21.4

179.2

196.5

30.2

27.5

8.0

6.8

27.1

26.8

4.6

4.1

www.angelbroking.com

Stock Watch

June 06, 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 )

FY17E FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FMCG

Godrej Consumer

Neutral

1,815

61,814

10,235

11,428

18.4

18.6

41.1

44.2

41.1

9.8

8.3

24.9

24.8

6.1

5.4

HUL

Neutral

1,098

237,570

35,252

38,495

17.8

20.7

22.4

53.2

49.0

50.8

43.6

95.6

88.9

6.6

6.0

ITC

Neutral

318

385,679

40,059

44,439

38.3

39.2

9.0

10.1

35.4

31.3

9.9

8.6

27.8

27.5

9.1

8.2

Marico

Neutral

324

41,798

6,430

7,349

18.8

19.5

6.4

7.7

50.6

42.1

15.3

12.9

33.2

32.5

6.3

5.5

Nestle*

Neutral

6,725

64,837

10,073

11,807

20.7

21.5

124.8

154.2

53.9

43.6

22.1

19.9

34.8

36.7

6.2

5.3

Procter & Gamble

Neutral

7,736

25,113

2,939

3,342

23.2

23.0

146.2

163.7

52.9

47.3

13.4

11.1

25.3

23.5

8.1

7.0

Hygiene

Tata Global

Neutral

155

9,779

8,675

9,088

9.8

7.4

8.2

20.9

18.9

1.7

1.6

7.9

8.1

1.0

HCL Tech^

Buy

858

1,014

122,457

46,723

52,342

22.1

20.9

60.0

62.8

14.3

13.7

3.6

3.1

25.3

22.4

2.4

2.0

Infosys

Buy

960

1,179

220,553

68,484

73,963

26.0

63.0

64.0

15.2

15.0

3.2

2.9

20.8

19.7

2.9

2.5

TCS

Neutral

2,601

512,518

117,966

127,403

27.5

27.6

134.3

144.5

19.4

18.0

5.8

5.4

29.8

29.7

4.0

3.7

Tech Mahindra

Buy

403

533

39,248

29,141

31,051

14.4

15.0

32.3

35.6

12.5

11.3

2.1

1.9

17.1

17.0

1.2

1.1

Wipro

Neutral

556

135,175

55,421

58,536

20.3

35.1

36.5

15.8

15.2

2.7

2.4

19.2

14.6

1.9

1.6

Media

D B Corp

Neutral

370

6,809

2,297

2,590

27.4

28.2

21.0

23.4

17.6

15.8

4.1

3.6

23.7

23.1

2.8

2.4

Hindustan Media

Neutral

281

2,059

1,016

1,138

24.3

25.2

27.3

30.1

10.3

9.3

2.0

1.7

16.2

15.8

1.4

1.2

Ventures

HT Media

Neutral

1,884

2,693

2,991

12.6

12.9

7.9

9.0

10.3

9.0

0.9

0.8

7.8

8.3

0.3

0.2

Jagran Prakashan

Buy

182

225

5,960

2,355

2,635

28.0

10.8

12.5

16.9

14.6

3.7

3.2

21.7

2.5

2.2

Sun TV Network

Neutral

840

33,091

2,850

3,265

70.1

71.0

26.2

30.4

32.1

27.6

8.2

7.2

24.3

25.6

11.2

9.6

TV Today Network

Buy

268

344

1,598

567

645

26.7

27.0

15.4

18.1

17.4

14.8

2.6

2.3

14.9

15.2

2.4

2.0

Metals & Mining

Coal India

Neutral

264

164,062

84,638

94,297

21.4

22.3

24.5

27.1

10.8

9.8

4.5

4.3

42.6

46.0

1.5

1.3

Hind. Zinc

Neutral

234

98,978

14,252

18,465

55.9

48.3

15.8

21.5

14.8

10.9

2.4

2.1

17.0

20.7

6.9

5.4

Hindalco

Neutral

197

44,194

107,899

112,095

7.4

8.2

9.2

13.0

21.4

15.2

1.0

4.8

6.6

0.9

JSW Steel

Neutral

191

46,048

53,201

58,779

16.1

16.2

130.6

153.7

1.5

1.2

0.2

14.0

14.4

1.6

1.4

NMDC

Neutral

113

35,625

6,643

7,284

44.4

47.7

7.1

7.7

15.9

14.6

1.4

1.3

8.8

9.2

3.1

2.8

SAIL

Neutral

23,603

47,528

53,738

(0.7)

2.1

(1.9)

2.6

22.0

0.6

(1.6)

3.9

1.4

1.2

Tata Steel

Neutral

491

47,706

121,374

121,856

7.2

8.4

18.6

34.3

26.4

14.3

1.7

1.5

6.1

10.1

1.0

Vedanta

Neutral

229

85,272

71,744

81,944

19.2

21.7

13.4

20.1

17.1

11.4

1.5

1.3

8.4

11.3

1.6

1.2

Oil & Gas

GAIL

Neutral

398

67,297

56,220

65,198

9.3

10.1

27.1

33.3

14.7

12.0

1.3

9.3

10.7

1.4

1.2

Indian Oil Corp

Neutral

422

204,943

373,359

428,656

5.9

5.5

54.0

59.3

7.8

7.1

1.2

1.1

16.0

15.6

0.7

0.6

ONGC

Neutral

176

225,223

137,222

152,563

15.0

21.8

19.5

24.1

9.0

7.3

0.8

0.7

8.5

10.1

1.9

1.7

www.angelbroking.com

Stock Watch

June 06, 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 )

FY17E FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Oil & Gas

Reliance Industries

Neutral

1,329

432,083

301,963

358,039

12.1

12.6

87.7

101.7

15.2

13.1

1.6

1.4

10.7

11.3

1.9

1.6

Pharmaceuticals

Alembic Pharma

Buy

547

648

10,317

3,101

3,966

19.7

20.5

21.4

25.5

25.6

21.5

5.4

4.4

23.0

22.8

3.3

2.4

Alkem Laboratories Ltd

Accumulate

1,954

2,161

23,358

5,853

6,901

17.1

18.4

74.6

85.0

26.2

23.0

5.5

4.6

21.1

20.2

4.0

3.4

Aurobindo Pharma

Buy

593

823

34,740

14,845

17,086

21.5

22.1

39.4

44.7

15.1

13.3

3.7

2.9

27.6

24.7

2.5

2.1

Aventis*

Neutral

4,041

9,306

2,206

2,508

16.6

16.8

128.9

139.9

31.4

28.9

5.4

4.2

21.6

23.5

4.0

3.3

Cadila Healthcare

Neutral

491

50,215

9,220

11,584

18.4

20.3

14.5

18.7

33.8

26.2

7.2

5.9

23.5

24.6

5.8

4.4

Cipla

Reduce

534

465

42,955

15,378

18,089

15.7

16.8

19.3

24.5

27.7

21.8

3.2

2.9

12.3

13.9

3.0

2.5

Dishman Pharma

Sell

301

143

4,859

1,718

1,890

22.7

22.8

9.5

11.3

31.7

26.6

3.1

2.8

10.1

10.9

3.3

2.9

Dr Reddy's

Neutral

2,535

41,998

14,081

15,937

16.1

18.6

72.6

105.9

34.9

23.9

3.4

3.1

9.6

13.6

3.2

2.8

GSK Pharma*

Neutral

2,469

20,916

2,927

3,290

11.8

16.2

34.4

49.6

71.8

49.8

10.4

10.8

13.9

21.3

6.9

6.2

Indoco Remedies

Buy

197

240

1,814

1,112

1,289

16.2

18.2

11.6

16.0

17.0

12.3

2.7

2.3

17.0

20.1

1.8

1.5

Ipca labs

Buy

511

613

6,451

3,258

3,747

12.8

15.3

12.1

19.2

42.3

26.6

2.6

2.4

6.4

9.5

2.1

1.8

Lupin

Buy

1,159

1,809

52,334

15,912

18,644

26.4

26.7

58.1

69.3

19.9

16.7

3.9

3.2

21.4

20.9

3.4

2.7

Natco Pharma

Neutral

966

16,836

2,090

2,335

32.1

26.6

26.8

23.2

36.0

41.7

10.2

8.8

28.4

21.1

8.1

99.7

Sun Pharma

Buy

512

847

122,937

31,129

35,258

32.0

32.9

30.2

35.3

17.0

14.5

2.8

2.3

20.0

20.1

3.5

2.9

Power

NTPC

Neutral

163

134,030

86,605

95,545

17.5

20.8

11.8

13.4

13.8

12.1

1.4

1.3

10.5

11.1

2.9

Power Grid

Accumulate

205

223

107,300

25,315

29,193

88.2

88.7

14.2

17.2

14.5

12.0

2.2

1.9

15.2

16.1

8.9

8.0

Tata Power

Neutral

21,909

36,916

39,557

17.4

27.1

5.1

6.3

15.9

12.9

1.4

1.3

9.0

10.3

1.6

1.4

Real Estate

MLIFE

Buy

424

522

2,178

1,152

1,300

22.7

24.6

29.9

35.8

14.2

11.9

1.1

1.0

7.6

8.6

2.6

2.2

Prestige Estate

Neutral

253

9,476

4,707

5,105

25.2

26.0

10.3

13.0

24.5

19.4

2.0

1.8

10.3

10.2

3.2

2.8

Telecom

Bharti Airtel

Neutral

372

148,843

105,086

114,808

34.5

34.7

12.2

16.4

30.5

22.7

2.1

1.9

6.8

8.4

2.3

2.0

Idea Cellular

Neutral

29,405

40,133

43,731

37.2

37.1

6.4

6.5

12.7

12.6

1.1

1.0

8.2

7.6

1.8

1.5

zOthers

Abbott India

Neutral

4,209

8,944

3,153

3,583

14.1

14.4

152.2

182.7

27.7

23.0

135.8

116.0

25.6

26.1

2.5

2.2

Asian Granito

Neutral

400

1,205

1,060

1,169

12.2

12.5

12.7

15.9

31.6

25.2

3.0

2.7

9.5

10.7

1.4

1.3

Bajaj Electricals

Accumulate

357

395

3,617

4,801

5,351

5.7

6.2

10.4

13.7

34.3

26.1

4.2

3.8

12.4

14.5

0.8

0.7

Banco Products (India)

Neutral

224

1,600

1,353

1,471

12.3

12.4

14.5

16.3

15.4

13.7

21.3

19.2

14.5

14.6

1.1

120.7

Coffee Day Enterprises

Neutral

247

5,094

2,964

3,260

20.5

21.2

4.7

8.0

30.9

2.9

2.6

5.5

8.5

2.1

1.9

Ltd

Competent Automobiles Neutral

202

129

1,137

1,256

3.1

2.7

28.0

23.6

7.2

8.6

38.8

35.1

14.3

11.5

0.1

Elecon Engineering

Neutral

724

1,482

1,660

13.7

14.5

3.9

5.8

16.6

11.1

3.9

3.6

7.8

10.9

0.8

0.7

www.angelbroking.com

Stock Watch

June 06, 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 )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

zOthers

Finolex Cables

Neutral

506

7,733

2,883

3,115

12.0

12.1

14.2

18.6

35.6

27.2

18.9

16.6

15.8

14.6

2.4

2.2

Garware Wall Ropes

Neutral

819

1,793

863

928

15.1

15.2

36.4

39.4

22.5

20.8

4.1

3.5

17.5

15.9

2.0

1.8

Goodyear India*

Neutral

851

1,963

1,598

1,704

10.4

10.2

49.4

52.6

17.2

16.2

79.5

69.8

18.2

17.0

0.9

129.8

Hitachi

Neutral

2,131

5,795

2,081

2,433

8.8

8.9

33.4

39.9

63.8

53.4

51.5

42.9

22.1

21.4

2.8

2.3

HSIL

Neutral

342

2,475

2,384

2,515

15.8

16.3

15.3

19.4

22.4

17.7

22.2

19.1

7.8

9.3

1.2

1.1

Interglobe Aviation

Neutral

1,135

41,023

21,122

26,005

14.5

27.6

110.7

132.1

10.3

8.6

61.4

43.8

168.5

201.1

1.9

1.5

Jyothy Laboratories

Neutral

368

6,686

1,440

2,052

11.5

13.0

8.5

10.0

43.3

36.8

10.5

9.7

18.6

19.3

4.9

3.4

Kirloskar Engines India

Neutral

388

5,604

2,554

2,800

9.9

10.0

10.5

12.1

36.9

32.0

15.4

14.6

10.7

11.7

1.8

1.6

Ltd

Linc Pen & Plastics

Neutral

269

398

382

420

9.3

9.5

13.5

15.7

20.0

17.1

3.4

3.0

17.1

17.3

1.1

1.0

M M Forgings

Neutral

609

736

546

608

20.4

20.7

41.3

48.7

14.8

12.5

83.5

73.9

16.6

17.0

1.2

1.1

Manpasand Bever.

Neutral

799

4,572

836

1,087

19.6

19.4

16.9

23.8

47.3

33.6

5.7

5.0

12.0

14.8

5.2

3.9

Mirza International

Neutral

143

1,717

963

1,069

17.2

18.0

6.1

7.5

23.3

19.0

3.6

3.0

15.0

15.7

2.0

1.8

MT Educare

Neutral

260

366

417

17.7

18.2

9.4

10.8

7.0

6.1

1.6

1.4

22.2

22.3

0.6

0.5

Narayana Hrudaya

Neutral

335

6,851

1,873

2,166

11.5

11.7

2.6

4.0

126.8

84.6

7.8

7.0

6.1

8.3

3.8

3.2

Navkar Corporation

Buy

217

265

3,091

369

561

42.9

42.3

6.9

11.5

31.4

18.8

2.2

2.0

7.4

10.5

9.4

6.2

Navneet Education

Neutral

185

4,323

1,062

1,147

24.0

6.1

6.6

30.4

27.9

6.2

5.5

20.6

19.8

4.2

3.8

Nilkamal

Neutral

2,085

3,112

1,995

2,165

10.7

10.4

69.8

80.6

29.9

25.9

119.2

103.5

16.6

16.5

1.6

1.4

Page Industries

Neutral

14,485

16,157

2,450

3,124

20.1

17.6

299.0

310.0

48.5

46.7

322.6

246.3

47.1

87.5

6.6

5.2

Parag Milk Foods

Neutral

238

2,001

1,919

2,231

9.3

9.6

9.5

12.9

25.2

18.4

3.9

3.2

15.5

17.5

1.2

1.0

Quick Heal

Neutral

216

1,516

408

495

27.3

27.0

7.7

8.8

27.9

24.6

2.6

9.3

10.6

2.9

2.4

Radico Khaitan

Buy

124

147

1,649

1,667

1,824

13.0

13.2

6.7

8.2

18.6

15.1

1.7

1.5

9.0

10.2

1.4

1.2

Relaxo Footwears

Neutral

491

5,902

2,085

2,469

9.2

8.2

7.6

8.0

65.0

61.8

25.2

21.5

17.9

18.8

2.9

2.5

S H Kelkar & Co.

Neutral

281

4,062

1,036

1,160

15.1

15.0

6.1

7.2

46.0

39.1

4.9

4.5

10.7

11.5

3.8

3.3

Siyaram Silk Mills

Neutral

2,117

1,984

1,652

1,857

11.6

11.7

92.4

110.1

22.9

19.2

3.4

2.9

14.7

15.2

1.4

1.3

Styrolution ABS India*

Neutral

777

1,366

1,440

1,537

9.2

9.0

40.6

42.6

19.1

18.2

48.9

44.4

12.3

11.6

0.9

0.8

Surya Roshni

Neutral

289

1,265

3,342

3,625

7.8

7.5

17.3

19.8

16.7

14.6

31.7

25.5

10.5

10.8

0.6

Team Lease Serv.

Neutral

1,200

2,052

3,229

4,001

1.5

1.8

22.8

32.8

52.7

36.5

5.7

4.9

10.7

13.4

0.5

0.4

The Byke Hospitality

Neutral

190

760

287

384

20.5

7.6

10.7

24.9

17.7

5.2

4.2

20.7

23.5

2.7

2.0

Transport Corporation of

Neutral

329

2,516

2,671

2,911

8.5

8.8

13.9

15.7

23.7

21.0

3.2

2.9

13.7

13.8

1.0

India

www.angelbroking.com

Stock Watch

June 06, 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 )

FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E FY17E FY18E

zOthers

TVS Srichakra

Neutral

4,050

3,101

2,304

2,614

13.7

13.8

231.1

266.6

17.5

15.2

455.0

358.3

33.9

29.3

1.3

1.2

UFO Moviez

Neutral

378

1,044

619

685

33.2

33.4

30.0

34.9

12.6

10.9

1.8

1.5

13.8

13.9

1.4

1.1

Visaka Industries

Neutral

416

660

1,051

1,138

10.3

10.4

21.0

23.1

19.8

18.0

53.3

49.9

9.0

9.2

0.9

0.8

VRL Logistics

Neutral

327

2,987

1,902

2,119

16.7

16.6

14.6

16.8

22.5

19.5

4.9

4.3

21.9

22.2

1.7

1.5

Wonderla Holidays

Neutral

371

2,096

287

355

38.0

40.0

11.3

14.2

32.8

26.1

4.7

4.1

21.4

23.9

7.0

5.7

VIP Industries

Accumulate

199

218

2,808

1,270

1,450

10.4

5.6

6.5

35.5

30.6

7.4

6.4

20.7

21.1

2.2

1.9

Navin Fluorine

Buy

3,063

3,650

2,999

789

945

21.1

22.4

120.1

143.4

25.5

21.4

4.1

3.5

17.8

18.5

3.7

3.0

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on June 05, 2017

www.angelbroking.com

Market Outlook

June 06, 2017

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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