Market Outlook

October 13, 2017

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

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

BSE Sensex

1.1

348

32,182

Nifty

1.1

112

10,096

U.S. stocks closed flat due to profit booking after the recent rally over the past few

sessions. Markets reacted negatively to earnings from Citigroup and JPMorgan with

Mid Cap

1.0

155

15,960

both stocks moving down 3.4 and 0.88 percent respectively. Producer prices rose by

Small Cap

1.2

193

16,904

0.4 percent in September. This was in line with expectations. Initial jobless claims

Bankex

0.9

257

27,381

dropped to 243,000, against expectations of a drop to 251,000.

Global Indices

Chg (%)

(Pts)

(Close)

UK stocks closed mildly positive as the Pound moved slightly higher. UK Housing

prices moved higher in September, according to a survey from the Royal Institution

Dow Jones

(0.1)

(32)

22,841

of Chartered Surveyors an increase 6.0 percent against an expectation of a gain of

Nasdaq

(0.2)

(12)

6,592

4.0 percent. Gold miner Randgold Resources moved 1 percent higher as gold prices

FTSE

0.3

7,556

rose due to the marginally dovish stance from the U.S. Federal Reserve's September

Nikkei

(00.4

20,955

policy meeting.

Hang Seng

0.2

269

28,459

Indian markets posted strong gains as the 2QFY18 earnings season began. Metal

Shanghai Com

(0.1)

(2)

3,386

stocks rallied strongly with the Metal index closing up 1.9 percent. Aluminium stocks

in particular rallied strongly with Hindalco and Nalco closing up 6 and 5.6 percent

Advances / Declines

BSE

NSE

respectively. The other major gainer for the session was the Healthcare index, which

Advances

1,715

1,142

closed up 1.15 percent.

Declines

1,989

567

Result Review

Unchanged

115

 Result Review Q2FY18: TCS

Volumes (` Cr)

Detailed analysis is on Pg2

BSE

3,621

Investor’s Ready Reckoner

NSE

27,360

Key Domestic & Global Indicator

Stock Watch: Latest investment recommendations on 150+ stocks

#Net Inflows (` Cr)

Net

Mtd

Ytd

Refer Pg7 onwards

FII

(56870

(2(2,556)

4133,97

MFs

8198

4,3,784

1490,12

Top Picks

CMP

Target

Upside

Company

Sector

Rating

(`)

(%)

Top Gainer

Price (`)

Chg (%)

Blue Star

Capital Goods Accumulate

789

867

9.9

Dewan Housing FinanceFinancials

Accumulate

532

610

14.7

Nbcccem

242

9.6

Asian Granito

Other

Buy

491

570

16.0

Sundrmfast

501

8.5

Navkar Corporation

Other

Buy

189

265

40.6

Bbtc

1,488

8.4

KEI Industries

Capital Goods

Accumulate

333

380

14.2

More Top Picks on Pg5

Edelweiss

294

7.4

Jindalstel

162

6.6

Key Upcoming Events

Consensus

Date

Region

Event Description

Reading

Expectations

Top Loser

Price (`)

Chg (%)

Oct13, 2017 India

Industrial Production YoY

1.20

2.60

Bomdyeing

214

(5.0)

Oct13, 2017 India

Exports YoY%

10.30

Aiaeng

1,387

(2.9)

Oct13, 2017 India

Monthly Wholesale Prices YoY%

3.24

3.30

Petronet

253

(2.0)

Oct13, 2017 US

Consumer price index (mom)

0.40

0.60

Gppl

139

(2.0)

Oct16, 2017 China

Exports YoY%

5.60

10.00

More Events on Pg7

Jisljaleqs

(1.9)

#as on 12^th Oct, 2017

www.angelbroking.com

Market Outlook

October 13, 2017

Result Review

TCS (CMP: `2,549 / TP: /Upside: )

The company posted 3.2% sequential growth in USD revenues to US$4,739mn V/s

US$4,738mn expected. On constant currency terms, the company posted a qoq

growth of 1.7%, driven by volume growth of 3.2% qoq. In rupee terms, revenues

came in at `30,541cr V/s `30,465cr, up 3.2% qoq.

In terms of geography, USA (North America posted 1.4% qoq CC, Latin America

posted 5.7% qoq CC), Europe (UK posted a 2.5% qoq CC growth, Continental

Europe posted a 5.3% qoq CC growth), Asia Pacific posted a 3.0% qoq CC

growth.

In terms of verticals BFSI posted a 1.9% qoq CC growth, Retail & CPG posted a

dip of 0.9% qoq CC, Communication & Media posted a 1.4% qoq CC growth,

Manufacturing a 1.9% qoq CC growth, Life Sciences & healthcare posted a 3.6%

qoq growth, Energy & utilities posted a 7.2% qoq growth, Travel & Hospitality

posted a qoq CC growth of 8.0%, Digital revenue posted a qoq CC growth of

5.9%.

EBIT margin, came in at 25.1% V/s 24.1% expected, a qoq expansion of 1.7%,

much better than expected on back of good volume growth. In client additions, the

company added clients $100M+ up by 1; $50M+, $20M+ & $10M+ each up by

6.Consequently, PAT came in at `6,466cr V/s `6,314cr expected, a rise of 8.8%

qoq. We maintain our neutral rating on the stock.

Y/E

Sales OPM

PAT

EPS ROE P/E P/BV EV/EBITDA EV/Sales

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017E

1,27,403

27.6

28,272

144.5

29.7

17.6

5.2

12.6

3.5

FY2018E

1,38,870

27.6

30,524

156.0

29.8

16.3

4.9

11.4

3.1

Economic and Political News

 Odisha 3rd best state at attracting investments: Assocham

 Banks to need `3.3 lakh cr as NPA provisioning in FY18: CRISIL

 Internet of Things (IOT) market likely to grow to $1.29 trillion by 2020: IDC-

Aeris

Corporate News

 Bharti Airtel acquires Tata Teleservices, to take over spectrum liability of nearly

`2,000cr

 Piramal Enterprises to raise `7,000cr via convertible debentures and rights

issue

 Cyient Q2FY18 profit at `109cr, up 14% YoY

www.angelbroking.com

Market Outlook

October 13, 2017

Top Picks

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

Strong growth in domestic business due to its leade`hip

in acute therapeutic segment. Alkem expects to launch

Alkem Laboratories

21,906

1,832

2,079

13.5

more products in USA, which bodes for its international

business.

We expect the company would report strong profitability

Asian Granito

1,478

491

570

16.0

owing to better product mix, higher B2C sales and

amalgamation synergy.

Favorable outlook for the AC industry to augur well for

Cooling products business which is out pacing the

Blue Star

7,558

789

867

9.9

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

16,681

532

610

14.7

presence in tier-II & III cities where the growth

opportunity is immense.

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

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

Karur Vysya Bank

7,938

131

180

37.0

Increasing share of CASA will help in NIM

improvement.

High order book execution in EPC segment, rising B2C

KEI Industries

2,589

333

380

14.2

sales and higher exports to boost the revenues and

profitability

Expected to benefit from the lower capex requirement

Music Broadcast

2,265

397

434

9.3

and 15 year long radio broadcast licensing.

Massive capacity expansion along with rail advantage

Navkar Corporation

2,688

189

265

40.6

at ICD as well CFS augur well for the company

Strong brands and distribution network would boost

Siyaram Silk Mills

2,529

2,698

2,856

5.9

growth going ahead. Stock currently trades at an

inexpensive valuation.

Market leaderhip in Hindi news genre and no.

viewe`hip ranking in English news genre, exit from the

TV Today Network

2,184

366

435

18.8

radio business, and anticipated growth in ad spends by

corporates to benefit the stock.

After GST, the company is expected to see higher

volumes along with improving product mix. The Gujarat

Maruti Suzuki

2,38,776

7,904

8,658

9.5

plant will also enable higher operating leverage which

will be margin accretive.

We expect loan book to grow at 24.3% over next two

GIC Housing

2,762

513

655

27.7

year; change in borrowing mix will help in NIM

improvement..

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

October 13, 2017

Key Upcoming Events

Result Calendar

Date

Company

October 13, 2017

Reliance Industries

October 16, 2017

Bajaj Finserv, Colgate Palmolive

Source: Bloomberg, Angel Research

Global economic events release calendar

Bloomberg Data

Date

Time

Country

Event Description

Unit

Period

Last Reported

Estimated

Oct 13, 2017

5:30 PMIndia

Industrial Production YoY

% Change

Aug

1.20

2.60

India

Exports YoY%

% Change

Sep

10.30

12:00 PMIndia

Monthly Wholesale Prices YoY%

% Change

Sep

3.24

3.30

6:00 PMUS

Consumer price index (mom)

% Change

Sep

0.40

0.60

Oct 16, 2017

China

Exports YoY%

% Change

Sep

5.60

10.00

7:00 AMChina

Consumer Price Index (YoY)

% Change

Sep

1.80

1.60

Oct 17, 2017

2:30 PMEuro Zone Euro-Zone CPI (YoY)

Sep F

1.50

6:45 PMUS

Industrial Production

Sep

(0.90)

0.30

2:00 PMUK

CPI (YoY)

% Change

Sep

2.90

Oct 18, 2017

6:00 PMUS

Housing Starts

Thousands

Sep

1,180.00

6:00 PMUS

Building permits

Thousands

Sep

1,272.00

1,230.00

2:00 PMUK

Jobless claims change

% Change

Sep

(2.80)

Oct 19, 2017

7:30 AMChina

Industrial Production (YoY)

% Change

Sep

6.00

6.40

7:30 AMChina

Real GDP (YoY)

% Change

6.90

6.80

Oct 20, 2017

7:30 PMEuro Zone Euro-Zone Consumer Confidence

Value

Oct A

(1.20)

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

October 13, 2017

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

10.0

6.0

9.1

5.1

8.8

9.0

5.0

4.4

4.3

8.0

7.9

4.2

7.6

7.5

8.0

7.3

7.2

4.0

3.5

7.0

3.2

2.9

7.0

6.1

3.0

2.4

5.7

6.0

2.0

1.2

0.9

5.0

1.0

4.0

3.0

(1.0)

(0.2)

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

(%)

4.5

4.2

54.0

3.9

4.0

3.6

3.7

3.4

52.0

3.2

3.3

3.5

3.0

50.0

3.0

2.4

2.2

48.0

2.5

2.0

46.0

1.5

44.0

1.0

42.0

0.5

40.0

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

Source: MOSPI, Angel Research

Exhibit 5: Exports and imports growth trends

Exhibit 6: Key policy rates

(%)

Exports yoy growth

Imports yoy growth

(%)

Repo rate

Reverse Repo rate

CRR

60.0

6.50

50.0

6.00

40.0

5.50

30.0

5.00

20.0

4.50

10.0

4.00

0.0

3.50

(10.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Market Outlook

October 13, 2017

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

76,660

3.1

18.2

25.4

Russia

Micex

2,095

1.8

6.8

6.5

India

Nifty

10,096

0.9

3.2

16.1

China

Shanghai Composite

3,386

0.0

5.4

13.3

South Africa

Top 40

51,353

3.5

10.0

13.8

Mexico

Mexbol

49,963

(1.0)

(2.3)

4.7

Indonesia

LQ45

986

1.1

1.3

5.2

Malaysia

KLCI

1,754

(1.6)

(0.2)

5.5

Thailand

SET 50

1,094

4.2

9.9

13.6

USA

Dow Jones

22,841

3.3

6.0

26.2

FTSE

7,556

2.1

1.9

7.7

Japan

Nikkei

20,955

8.7

4.4

24.6

Germany

DAX

12,983

4.1

2.7

22.1

France

CAC

5,361

2.9

2.4

18.1

Source: Bloomberg, Angel Research, data as of 12^th Oct-17 p68in4

www.angelbroking.com

Stock Watch

October 13, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Agri / Agri Chemical

Rallis

Reduce

236

209

4,597

1,873

2,099

15.0

9.5

10.5

24.9

22.5

3.8

3.4

15.8

16.0

2.3

2.1

United Phosphorus

Neutral

807

41,011

18,922

21,949

18.0

18.5

36.2

45.6

22.3

17.7

4.7

3.9

22.7

23.8

2.3

2.0

Auto & Auto Ancillary

Ashok Leyland

Neutral

125

36,684

23,339

27,240

10.1

10.8

4.7

6.2

27.0

20.2

5.4

4.8

20.0

23.6

1.5

1.3

Bajaj Auto

Neutral

3,154

91,269

23,936

27,955

19.5

20.1

142.7

167.3

22.1

18.9

4.8

4.3

21.8

22.8

3.4

2.9

Bharat Forge

Buy

648

875

30,168

7,637

8,755

21.7

23.2

36.1

47.3

18.0

13.7

3.2

2.7

18.5

20.8

3.8

3.2

Eicher Motors

Neutral

31,336

85,304

19,043

22,837

19.5

19.9

835.4

1,019.0

37.5

30.8

14.0

10.8

40.9

37.8

4.3

3.6

Gabriel India

Neutral

199

2,862

1,782

2,033

9.7

10.2

7.1

8.9

28.1

22.5

5.7

4.8

21.0

22.2

1.6

1.3

Hero Motocorp

Accumulate

3,742

4,129

74,733

32,239

36,878

16.0

15.6

184.4

206.5

20.3

18.1

6.4

5.6

31.3

30.7

2.1

1.8

Jamna Auto Industries Neutral

2,399

1,441

1,662

14.4

14.8

13.9

17.6

4.3

3.4

1.2

1.0

30.0

31.0

1.7

1.4

Mahindra and Mahindra Neutral

1,339

83,170

46,971

53,816

13.6

14.0

67.7

79.8

19.8

16.8

2.8

2.5

15.0

15.9

1.7

1.4

Maruti

Accumulate

7,904

8,658

238,776

81,825

101,245

15.0

283.5

356.0

27.9

22.2

6.1

5.0

21.9

22.4

2.6

2.0

Minda Industries

Neutral

816

7,053

4,328

5,084

11.0

11.9

27.3

36.4

30.0

22.4

6.3

5.0

23.1

25.6

1.7

1.5

Motherson Sumi

Neutral

357

75,186

55,937

64,445

10.8

11.4

16.9

21.1

17.0

4.7

4.8

25.2

25.4

1.4

1.2

Tata Motors

Neutral

420

121,355

303,167

343,649

11.8

13.8

33.1

54.7

12.7

7.7

2.1

1.7

16.9

23.0

0.5

0.4

TVS Motor

Neutral

696

33,087

13,992

16,216

9.0

9.4

17.1

20.3

40.9

34.3

10.8

8.4

29.7

27.7

2.3

1.9

Amara Raja Batteries

Buy

693

858

11,844

6,140

7,122

14.3

15.6

29.3

39.0

23.7

17.8

4.0

3.4

17.1

19.0

1.9

1.7

Exide Industries

Neutral

206

17,497

8,689

9,854

15.1

15.2

9.7

11.0

21.3

18.7

3.8

3.3

15.7

16.1

1.7

1.5

Apollo Tyres

Neutral

242

12,308

15,739

17,326

13.3

14.6

20.4

26.7

11.9

9.1

1.4

1.3

20.4

26.7

1.0

0.9

Ceat

Neutral

1,729

6,992

6,661

7,717

11.1

14.2

116.2

178.2

14.9

9.7

2.6

2.2

15.2

21.3

1.2

1.0

JK Tyres

Neutral

150

3,393

8,318

9,239

16.2

16.4

21.0

27.5

7.1

5.4

1.4

1.1

19.1

20.4

0.9

0.7

Swaraj Engines

Neutral

2,091

2,597

788

889

16.4

16.5

71.6

81.0

29.2

25.8

8.4

7.8

29.6

31.0

3.0

2.6

Subros

Neutral

243

1,457

1,855

2,135

11.6

11.8

10.3

14.7

23.7

16.6

3.6

3.1

15.8

19.1

1.0

0.9

Capital Goods

BEML

Neutral

1,718

7,156

4,286

5,194

7.1

8.2

42.9

58.1

40.1

29.6

3.3

3.0

7.6

8.7

1.7

1.4

Bharat Electronics

Neutral

169

41,609

10,258

12,470

19.6

19.5

7.3

8.6

23.2

19.7

0.5

0.4

20.4

21.9

3.5

2.9

Voltas

Neutral

535

17,709

6,778

8,004

9.6

11.0

17.1

22.4

31.3

23.9

7.5

6.5

17.7

19.8

2.3

1.9

BHEL

Neutral

31,060

33,200

39,167

6.8

9.5

6.2

11.2

13.7

7.6

0.6

4.6

8.0

0.5

0.4

Blue Star

Accumulate

789

867

7,558

5,220

6,207

6.3

6.6

16.8

22.3

47.0

35.4

9.3

8.2

19.9

23.3

1.4

1.2

CG Power and Industrial

Neutral

4,945

6,555

7,292

7.5

0.8

7,890.0

98.6

1.2

0.1

1.2

0.8

Solutions

Greaves Cotton

Neutral

132

3,235

1,778

1,993

14.7

15.1

8.1

9.1

16.4

14.6

3.7

3.4

21.8

23.6

1.6

1.4

www.angelbroking.com

Stock Watch

October 13, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Capital Goods

KEC International

Buy

304

350

7,814

9,779

11,113

9.4

9.8

14.2

18.2

21.4

16.7

4.1

3.4

21.1

22.1

1.1

0.9

KEI Industries

Accumulate

333

380

2,589

3,001

3,391

10.0

13.0

16.1

25.6

20.7

4.7

3.9

18.2

18.7

1.0

0.9

Thermax

Neutral

921

10,979

4,125

4,747

10.3

10.8

26.7

31.5

34.5

29.3

3.9

3.5

11.2

12.0

2.4

2.1

VATech Wabag

Buy

583

681

3,185

3,867

4,126

9.6

10.0

34.9

39.8

16.7

14.7

2.8

2.4

17.7

17.5

0.8

Cement

ACC

Neutral

1,742

32,706

12,255

13,350

13.5

14.3

58.0

66.2

30.0

26.3

3.6

3.3

11.5

12.2

2.6

2.4

Ambuja Cements

Neutral

278

55,112

10,250

11,450

17.5

19.0

7.2

8.3

38.6

33.4

2.8

2.6

7.0

7.8

5.2

4.5

India Cements

Neutral

179

5,511

6,135

6,750

14.8

15.2

8.5

11.5

21.0

15.6

1.0

4.8

6.2

1.2

1.1

JK Cement

Neutral

975

6,818

4,150

4,775

19.2

20.0

49.0

63.5

19.9

15.4

3.2

2.7

17.0

18.5

2.1

1.8

J K Lakshmi Cement

Neutral

384

4,516

3,422

3,757

15.5

17.0

13.5

23.2

28.4

16.5

3.0

2.5

10.8

15.5

1.7

1.5

Orient Cement

Neutral

153

3,132

2,215

3,233

16.8

17.0

5.9

6.9

25.9

22.2

2.0

1.8

10.8

10.1

2.4

1.6

UltraTech Cement

Neutral

3,922

107,675

28,250

35,150

20.2

23.5

77.5

122.2

50.6

32.1

4.3

3.9

9.6

14.8

4.3

3.4

Construction

KNR Constructions

Neutral

208

2,923

1,846

2,203

14.5

12.1

13.7

17.2

15.2

0.9

0.8

17.5

16.7

1.6

1.4

Larsen & Toubro

Neutral

1,143

160,033

95,787

109,476

10.2

11.6

44.5

50.8

25.7

22.5

3.2

3.0

12.9

13.1

2.2

2.0

Gujarat Pipavav Port

Neutral

139

6,705

739

842

61.6

62.7

5.1

6.2

27.2

22.6

3.4

3.3

12.7

14.9

8.5

7.4

PNC Infratech

Neutral

146

3,745

2,040

2,935

13.0

6.4

9.0

22.8

16.2

0.6

0.5

9.7

12.2

1.8

1.3

Simplex Infra

Neutral

487

2,410

6,012

6,619

11.6

11.7

21.1

31.0

23.1

15.7

1.6

1.5

6.5

8.6

0.9

0.8

Sadbhav Engineering

Accumulate

277

298

4,753

3,823

4,426

10.7

10.8

10.3

11.8

26.9

23.5

3.2

2.8

10.1

10.5

1.6

1.4

NBCC

Neutral

242

21,776

9,099

12,706

6.4

7.3

9.6

33.2

25.3

1.5

1.2

27.5

30.5

2.3

1.6

MEP Infra

Neutral

1,600

2,403

2,910

18.3

16.8

2.4

6.1

41.8

16.2

15.9

10.7

35.2

55.8

1.8

1.5

SIPL

Neutral

100

3,533

2,060

2,390

46.8

47.7

(5.8)

(3.1)

3.8

4.3

(14.2)

(2.3)

6.5

6.1

Engineers India

Neutral

153

10,324

1,795

2,611

21.1

22.4

5.9

8.1

26.0

18.9

1.9

1.8

12.9

16.1

4.1

2.7

Financials

Axis Bank

Accumulate

525

580

125,790

32,558

35,843

3.5

3.2

27.8

41.0

18.9

12.8

2.0

1.8

11.4

14.9

Bank of Baroda

Neutral

139

31,947

22,533

26,079

2.4

12.0

20.9

11.5

6.6

0.8

0.7

6.6

11.0

Canara Bank

Neutral

304

18,176

17,925

20,235

2.0

2.1

18.5

36.5

16.5

8.3

0.6

3.4

6.2

Can Fin Homes

Buy

526

2,128

7,001

586

741

3.5

107.8

141.0

4.9

3.7

1.1

0.9

24.1

25.6

Cholamandalam Inv. &

Accumulate

1,152

1,230

18,012

2,826

3,307

6.3

53.7

64.6

21.5

17.9

3.7

3.1

18.3

18.9

Fin. Co.

Dewan Housing Finance Accumulate

532

610

16,681

2,676

3,383

2.4

2.7

37.4

49.7

14.2

10.7

1.9

1.6

13.8

16.2

Equitas Holdings

Buy

152

235

5,146

1,125

1,380

9.6

9.8

1.5

6.0

101.3

25.3

2.3

2.1

2.4

8.2

Federal Bank

Accumulate

118

125

22,996

4,896

5,930

2.8

3.1

5.4

7.6

22.0

15.6

1.9

1.7

8.5

11.0

www.angelbroking.com

Stock Watch

October 13, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Financials

GIC Housing

Buy

513

655

2,762

376

477

3.6

3.7

33.0

40.0

15.5

12.8

2.8

2.4

20.0

23.0

HDFC Bank

Neutral

1,815

468,639

55,236

63,253

4.5

4.4

68.9

82.4

26.4

22.0

4.6

3.8

18.7

18.5

ICICI Bank

Buy

268

315

171,664

42,361

51,378

3.6

3.9

18.4

25.7

14.6

10.4

1.6

1.5

11.3

15.0

Karur Vysya Bank

Buy

131

180

7,938

3,289

3,630

3.7

3.9

10.8

14.1

12.1

9.3

1.5

1.3

12.5

14.7

LIC Housing Finance

Neutral

651

32,874

4,895

6,332

3.4

3.7

50.7

66.8

12.8

9.8

2.6

2.1

21.7

23.8

Punjab Natl.Bank

Neutral

134

28,440

23,708

25,758

2.1

5.9

16.4

22.7

8.1

0.7

0.6

3.0

8.3

RBL Bank

Neutral

517

21,340

2,309

2,888

2.6

2.5

16.4

19.1

31.6

27.1

4.0

3.5

13.3

13.8

Repco Home Finance

Buy

643

825

4,021

496

597

4.4

4.2

38.5

48.7

16.7

13.2

3.0

2.5

19.6

20.6

South Ind.Bank

Neutral

5,657

3,195

3,567

3.0

3.1

3.0

3.8

10.4

8.2

1.0

0.9

10.5

11.9

St Bk of India

Neutral

252

217,182

105,827

121,056

2.4

2.5

16.1

25.6

15.6

9.8

1.2

1.1

6.6

9.9

Union Bank

Neutral

127

9,207

14,650

16,225

2.3

23.1

32.5

5.5

3.9

0.4

7.1

9.2

Yes Bank

Neutral

365

83,659

11,088

13,138

3.0

2.9

84.0

99.3

4.4

3.7

0.7

0.6

16.3

16.8

FMCG

Akzo Nobel India

Neutral

1,821

8,734

3,164

3,607

13.8

13.7

58.6

67.9

31.1

26.8

7.6

6.7

24.5

25.1

2.6

2.3

Asian Paints

Neutral

1,160

111,277

17,603

20,615

18.6

2,128.9

2,543.3

0.5

11.5

9.7

28.0

28.9

6.1

5.2

Britannia

Neutral

4,558

54,725

9,690

11,278

14.8

15.4

84.0

101.0

54.3

45.1

19.8

15.7

40.6

39.0

5.6

4.8

Colgate

Neutral

1,110

30,184

4,420

5,074

24.9

25.3

28.6

32.8

38.8

33.8

15.3

12.4

43.8

40.5

6.6

5.7

Dabur India

Neutral

325

57,293

8,346

9,344

19.6

19.9

7.8

9.0

41.7

36.1

8.4

7.6

25.2

24.8

6.5

5.7

GlaxoSmith Con*

Neutral

5,000

21,027

5,072

5,760

18.2

18.4

176.3

199.2

28.4

25.1

6.0

5.4

21.2

21.7

3.5

3.0

Godrej Consumer

Neutral

974

66,368

10,171

11,682

20.8

21.5

21.7

27.1

44.9

35.9

10.1

8.7

22.3

23.4

6.6

5.7

HUL

Neutral

1,238

268,006

37,077

41,508

20.3

21.8

5,189.9

6,318.5

0.2

37.8

32.2

74.8

82.0

7.1

6.3

ITC

Neutral

267

325,214

44,588

49,853

37.0

37.3

9.6

11.0

27.8

24.3

6.8

6.5

25.1

27.3

6.8

6.0

Marico

Neutral

320

41,302

6,788

7,766

18.5

19.2

7.1

8.5

45.1

37.7

15.8

13.5

36.9

38.0

5.9

5.2

Nestle*

Neutral

7,381

71,162

10,083

11,182

20.0

20.9

119.7

141.3

61.7

52.2

217.3

198.6

36.7

39.8

6.7

6.0

Tata Global

Neutral

212

13,370

7,121

7,641

11.9

12.3

6.9

8.0

30.7

26.5

2.1

2.0

6.8

7.2

1.7

1.5

Procter & Gamble

Neutral

8,596

27,903

3,034

3,579

27.1

27.7

167.7

198.8

51.3

43.2

13.8

11.9

28.8

29.5

8.6

7.2

Hygiene

HCL Tech^

Accumulate

913

1,014

130,277

52,342

57,053

20.9

62.8

67.6

14.5

13.5

3.3

2.8

22.4

20.6

2.2

1.9

Infosys

Buy

927

1,179

212,963

73,963

80,619

26.0

64.4

69.3

14.4

13.4

2.8

2.6

19.7

19.6

2.3

2.1

TCS

Neutral

2,549

502,173

127,403

138,870

27.6

144.5

156.0

17.6

16.3

5.2

4.9

29.7

29.8

3.6

3.3

Tech Mahindra

Accumulate

474

533

46,253

31,015

33,496

15.0

35.6

38.1

13.3

12.4

2.3

2.1

17.0

16.3

1.3

1.1

www.angelbroking.com

Stock Watch

October 13, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Wipro

Neutral

292

142,326

58,536

61,858

20.3

18.2

19.1

16.1

15.3

2.5

2.2

14.6

13.4

2.4

2.2

Media

D B Corp

Neutral

375

6,904

2,404

2,625

30.5

31.5

23.7

26.9

15.8

14.0

3.7

3.2

23.5

22.8

2.7

2.5

HT Media

Neutral

2,217

2,589

2,830

15.1

15.4

8.3

10.9

11.5

8.7

0.9

0.8

8.4

10.4

0.4

0.3

Jagran Prakashan

Buy

179

225

5,853

2,541

2,835

28.5

28.7

12.7

14.1

12.7

2.9

2.5

21.3

21.4

2.2

1.9

Sun TV Network

Neutral

793

31,263

3,238

3,789

51.9

55.1

30.9

38.0

25.7

20.9

7.3

6.4

30.0

31.0

9.2

7.7

Hindustan Media

Neutral

247

1,813

1,002

1,074

23.3

23.5

29.2

33.8

8.5

7.3

1.3

1.1

15.6

15.4

0.8

0.5

Ventures

TV Today Network

Buy

366

435

2,184

667

727

27.7

18.6

20.1

19.7

18.3

3.1

15.6

17.3

2.8

2.6

Music Broadcast Limited Accumulate

397

434

2,265

271

317

91.0

109.0

6.0

10.0

66.2

39.7

4.1

3.8

6.5

9.3

7.9

6.6

Metals & Mining

Coal India

Neutral

282

175,297

82,301

91,235

17.0

18.0

17.1

20.5

16.5

13.8

3.1

2.9

45.0

55.0

1.8

1.6

Hind. Zinc

Neutral

315

133,013

22,108

24,555

57.0

58.0

22.1

26.3

14.2

12.0

4.6

3.7

32.0

35.0

5.0

4.2

Hindalco

Neutral

264

59,142

102,350

105,355

13.5

14.5

21.5

24.5

12.3

10.8

1.7

1.4

15.0

15.2

1.2

1.1

JSW Steel

Neutral

256

61,857

64,500

68,245

21.1

21.5

20.1

21.2

12.7

12.1

2.3

2.0

1.7

1.6

NMDC

Neutral

119

37,777

10,209

11,450

47.0

48.0

11.1

12.1

10.8

9.9

1.5

1.4

3.2

2.9

SAIL

Neutral

23,190

54,100

63,555

3.0

10.0

(10.0)

1.5

37.4

0.8

0.7

1.4

1.2

Vedanta

Neutral

320

118,764

81,206

87,345

28.0

29.0

26.5

33.5

12.1

9.5

2.7

2.4

2.2

1.9

Tata Steel

Neutral

691

67,096

121,445

126,500

16.2

17.2

65.4

81.3

10.6

8.5

1.7

1.4

1.1

0.9

Oil & Gas

GAIL

Neutral

446

75,432

53,115

52,344

14.2

15.3

30.0

31.1

14.9

14.3

1.9

1.7

1.1

ONGC

Neutral

170

218,101

83,111

84,934

44.2

44.9

16.4

16.9

10.4

10.1

1.3

1.2

2.5

Indian Oil Corp

Neutral

415

201,423

396,116

432,560

8.5

8.8

40.1

42.2

10.3

9.8

1.8

1.6

0.7

0.6

Reliance Industries

Neutral

873

567,457

257,711

267,438

17.0

18.2

89.1

89.5

9.8

0.9

1.9

1.8

Pharmaceuticals

Alembic Pharma

Buy

494

600

9,320

3,903

4,584

18.2

19.2

21.8

27.2

22.7

18.2

4.1

3.4

19.8

20.6

2.4

2.1

Alkem Laboratories Ltd

Accumulate

1,832

2,079

21,906

6,320

7,341

17.5

19.8

72.7

96.6

25.2

19.0

4.5

3.8

16.7

18.7

3.4

2.9

Aurobindo Pharma

Accumulate

745

823

43,657

17,086

19,478

22.1

22.0

44.7

51.4

16.7

14.5

3.7

3.0

24.7

22.7

2.7

2.3

Aventis*

Neutral

4,247

9,782

2,508

2,862

16.8

139.9

153.8

30.4

27.6

4.4

3.6

23.5

25.8

3.5

2.9

Cadila Healthcare

Sell

501

426

51,315

11,584

13,228

20.3

20.4

18.7

21.3

26.8

23.5

6.0

4.9

24.6

22.9

4.3

3.7

Cipla

Sell

590

458

47,480

16,619

19,437

15.4

16.2

19.7

24.3

30.0

24.3

3.4

3.0

12.0

13.2

3.0

2.6

Dr Reddy's

Neutral

2,380

39,459

15,844

17,973

17.6

18.2

91.7

111.0

26.0

21.4

3.0

2.7

11.9

13.0

2.7

2.4

GSK Pharma*

Neutral

2,427

20,555

3,260

3,651

15.0

18.0

46.1

58.6

52.6

41.4

10.8

11.2

20.0

26.5

6.2

5.7

Indoco Remedies

Sell

259

153

2,386

1,154

1,310

14.9

11.3

12.7

22.9

20.4

3.3

2.9

15.0

2.2

1.9

www.angelbroking.com

Stock Watch

October 13, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Pharmaceuticals

Ipca labs

Accumulate

501

540

6,321

3,593

4,022

14.5

15.5

19.4

25.2

25.8

19.9

2.4

2.1

9.5

11.2

1.8

1.6

Lupin

Buy

1,060

1,467

47,881

18,657

21,289

21.3

23.3

52.8

66.7

20.1

15.9

3.0

2.6

16.3

17.5

2.6

2.1

Natco Pharma

Accumulate

993

1,057

17,306

1,886

2,016

32.3

29.5

23.2

22.0

42.9

45.0

9.0

7.9

20.9

17.6

9.0

8.4

Sun Pharma

Neutral

539

129,415

32,899

36,451

26.9

25.4

31.6

32.3

17.1

16.7

3.0

2.6

18.7

18.8

3.6

3.1

Syngene International

Accumulate

494

557

9,880

1,402

1,823

32.8

36.0

15.9

20.7

31.1

23.9

5.8

4.8

18.7

20.0

7.0

5.4

Power

Tata Power

Neutral

22,098

32,547

33,806

20.5

4.7

5.4

17.4

15.3

1.7

1.4

10.5

1.7

1.6

NTPC

Neutral

177

145,615

86,070

101,246

28.3

30.7

12.9

16.2

13.7

10.9

1.4

1.3

10.6

12.4

3.1

2.7

Power Grid

Accumulate

203

223

106,044

29,183

32,946

89.7

90.0

18.0

20.8

11.3

9.8

1.9

1.7

17.7

18.2

7.6

7.0

Real Estate

Prestige Estate

Neutral

286

10,731

4,607

5,146

21.0

22.2

7.9

9.8

36.2

29.2

2.2

2.1

10.3

12.0

3.5

3.2

MLIFE

Accumulate

461

522

2,367

487

590

12.3

17.8

21.0

31.2

22.0

14.8

1.2

1.1

5.2

7.4

3.6

2.9

Telecom

Bharti Airtel

Neutral

400

159,916

97,903

105,233

36.0

36.3

9.3

11.1

43.0

36.2

2.1

2.0

5.0

5.6

2.6

2.3

Idea Cellular

Neutral

26,871

35,012

37,689

27.1

27.7

(4.4)

(2.7)

1.2

(6.8)

(4.6)

2.1

1.9

zOthers

Abbott India

Neutral

4,192

8,907

3,244

3,723

14.9

16.1

167.5

209.4

25.0

20.0

5.5

4.6

23.7

24.8

2.4

2.0

Asian Granito

Buy

491

570

1,478

1,169

1,286

12.5

16.0

19.7

30.8

24.9

3.3

2.9

10.7

11.6

1.5

1.3

Bajaj Electricals

Accumulate

375

395

3,805

4,646

5,301

6.7

7.6

16.1

22.3

23.3

16.8

3.8

3.2

16.4

19.2

0.8

0.7

Banco Products (India)

Neutral

223

1,596

1,530

1,695

13.2

12.7

19.0

20.0

11.8

11.2

1.9

1.7

0.2

1.0

106.0

Coffee Day Enterprises

Neutral

220

4,532

3,494

3,913

17.4

18.0

4.8

5.7

38.6

2.0

1.9

0.1

1.8

1.5

Ltd

Elecon Engineering

Neutral

747

171

201

15.0

16.2

36.0

43.0

1.9

1.6

0.2

0.1

3.7

3.2

Garware Wall Ropes

Neutral

905

1,979

928

1,003

15.2

39.4

43.2

22.9

21.0

3.8

3.2

16.5

15.4

2.0

1.8

Goodyear India*

Neutral

818

1,887

1,717

1,866

11.8

12.3

47.9

49.8

17.1

16.4

2.6

2.3

15.6

15.7

0.8

113.7

Hitachi

Neutral

2,040

5,547

2,355

2,715

10.3

10.8

49.0

60.9

41.6

33.5

9.7

7.7

0.2

2.4

2.0

HSIL

Neutral

453

3,275

2,240

2,670

14.6

15.0

17.0

22.0

26.7

20.6

2.2

2.1

0.1

1.7

1.4

Interglobe Aviation

Neutral

1,134

41,026

22,570

27,955

14.2

15.0

63.6

81.8

17.9

13.9

9.4

7.9

0.5

0.6

1.5

1.1

Jyothy Laboratories

Neutral

389

7,076

1,781

2,044

14.1

15.0

9.4

10.5

41.7

37.1

8.9

8.3

0.2

4.2

3.6

Linc Pen & Plastics

Neutral

254

376

420

462

9.3

15.3

17.1

16.6

14.8

2.8

2.9

16.9

19.5

0.9

M M Forgings

Neutral

855

1,032

542

642

20.1

21.0

41.6

56.8

20.6

15.1

2.8

2.4

0.1

0.2

2.3

2.0

Mirza International

Neutral

162

1,953

1,148

1,285

18.0

8.0

9.4

20.2

17.4

3.3

2.8

16.3

16.1

1.9

1.6

Navkar Corporation

Buy

189

265

2,688

561

617

41.5

11.5

12.7

16.4

14.8

1.7

1.5

10.5

10.4

5.5

4.7

Nilkamal

Neutral

1,634

2,438

2,317

2,525

11.4

11.1

96.0

105.0

17.0

15.6

2.9

2.5

0.2

1.0

0.9

www.angelbroking.com

Stock Watch

October 13, 2017

Company Name

Reco

CMP

Target Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

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

zOthers

Parag Milk Foods

Neutral

269

2,259

1,987

2,379

7.6

9.0

12.4

18.3

21.7

14.7

3.1

2.7

8.2

13.2

1.3

1.1

Radico Khaitan

Neutral

177

2,359

1,811

1,992

13.2

8.1

8.8

21.9

20.1

2.2

2.4

10.1

12.0

1.6

1.5

Relaxo Footwears

Neutral

510

6,127

1,981

2,310

13.7

14.5

12.0

15.5

42.5

32.9

8.3

6.7

0.2

3.2

2.7

Siyaram Silk Mills

Accumulate

2,698

2,856

2,529

1,769

1,981

12.7

113.1

131.1

23.8

20.6

3.7

3.2

15.5

1.6

1.4

Styrolution ABS India* Neutral

1,057

1,859

1,800

1,980

8.0

8.1

42.0

46.2

25.2

22.9

2.8

2.5

0.1

1.1

Surya Roshni

Neutral

306

1,339

4,870

5,320

7.7

7.8

22.8

28.1

13.4

10.9

1.8

1.5

0.1

0.5

0.4

TVS Srichakra

Neutral

3,044

2,331

2,729

2,893

12.7

12.5

248.5

265.0

12.3

11.5

3.5

2.8

0.3

0.9

0.8

Visaka Industries

Neutral

676

1,073

1,104

1,214

12.1

12.6

31.0

37.9

21.8

17.9

2.7

2.4

0.1

1.2

1.1

VIP Industries

Accumulate

265

300

3,738

1,450

1,693

10.4

10.5

6.5

7.8

40.4

33.9

8.5

7.5

21.1

22.1

2.6

2.2

Navin Fluorine

Neutral

720

3,549

945

1,154

22.4

22.6

28.7

34.8

25.1

20.7

4.2

3.6

3.3

2.6

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 12, 2017

www.angelbroking.com

Market Outlook

October 13, 2017

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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