Market Outlook

October 14, 2016

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian markets are likely to open flat tracking SGX Nifty.

BSE Sensex

(1.6)

(439)

27,643

Nifty

(1.6)

(135)

8,573

After falling sharply early in the trading session on Thursday, stocks gained some

Mid Cap

(1.5)

(203)

13,312

ground as the day progressed but still closed mostly lower. Concerns over the global

Small Cap

(1.4)

(188)

13,068

economy contributed to the early weakness in the market.

Bankex

(2.2)

(484)

21,638

The European markets also closed sharply on negative note on weak Chinese data.

The disappointing data sparked concerns among traders over the health of the

Global Indices

Chg (%)

(Pts)

(Close)

global economy.

Dow Jones

(0.3)

(45)

18,098

Indian markets remained under pressure from opening and more selling pressure

Nasdaq

(0.5)

(25)

5,213

was observed as the day progressed. There was broad based selling witnessed in the

markets. Global volatility led to the fall in Indian markets and volatility could remain

FTSE

(0.7)

(47)

6,977

high for few trading session. However, softening CPI inflation data might support the

Nikkei

(0.4)

(66)

16,774

Indian markets today.

Hang Seng

(1.6)

(376)

23,031

Shanghai Com

0.1

3,061

News Analysis

 Result preview: Infosys

Advances / Declines

BSE

NSE

 Result Review: TCS

Detailed analysis on Pg2

Advances

893

349

Declines

1,989

1290

Investor’s Ready Reckoner

Unchanged

115

Key Domestic & Global Indicators

Stock Watch: Latest investment recommendations on 150+ stocks

Volumes (` Cr)

Refer Pg6 onwards

BSE

3,946

Top Picks

NSE

23,575

CMP

Target

Upside

Company

Sector

Rating

(`)

(%)

Amara Raja Batteries Auto & Auto Ancill. Accumulate

1,037

1,174

13.3

Net Inflows (` Cr)

Net

Mtd

Ytd

HCL Tech

Buy

803

1,000

24.5

FII

1,694

51,698

Bharat Electronics

Capital Goods

Accumulate

1,244

1,414

13.7

MFs

926

1,682

15,629

Equitas Holdings

Financials

Buy

173

235

35.6

Navkar Corporation Others

Buy

192

265

38.0

Top Gainers

Price (`)

Chg (%)

More Top Picks on Pg4

Cyient

539

11.5

Key Upcoming Events

Justdial

454

4.6

Consensus

Date

Region

Event Description

Reading

Expectations

Jktyre

158

4.0

Oct 14 US

Producer Price Index (MoM)

(0.3)

Petronet

380

3.0

Oct 14 India

Monthly Wholesale Prices YoY%

3.7

3.9

Bayercrop

4,500

2.9

Oct 14 Euro Zone

Euro Zone CPI (YoY)

0.4

Oct 17 China

Consumer Price Index (YoY)

1.3

1.6

Top Losers

Price (`)

Chg (%)

Oct 17 US

Industrial Production

(0.4)

0.2

Oct 18 US

Consumer Price Index (MoM)

0.2

0.3

J&Kbank

(14.1)

Oct 18 UK

CPI (YoY)

0.6

Jswenergy

(5.4)

6.(

More Events on Pg5

Tv18Brdcst

(5.4)

Dishtv

(5.2)

Eidparry

259

(5.2)

As on October 13, 2016

www.angelbroking.com

Market Outlook

October 14, 2016

News Analysis

Result Preview:

Infosys (CMP: `1,052 / TP: `1,370 /Upside: 30.2%)

Infosys is slated to announce its 2QFY2017 results today. We expect the company

to post 2.4% sequential growth in USD revenues to US$2,561mn. In rupee terms,

revenues are expected to come in at `17,133cr, up 2.1% qoq. EBIT margin is

expected to show an expansion of ~35bp qoq to end the period at 24.5% on

account of strong growth. Consequently, PAT is expected to be at `3,546cr, a rise

of 3.2% qoq. We maintain our buy rating on the stock with a target price of

`1,370.

Y/E

Sales OPM

PAT

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

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017E

69,934

27.5

14,886

64.8

22.0

16.2

3.6

10.6

2.9

FY2018E

79,025

27.5

16,529

72.0

22.3

14.6

3.3

9.1

2.5

Result Review:

TCS (CMP: `2,329 / TP: /Upside: Under Review)

TCS announced its 2QFY2017 results, which came in below expectations, while

the EBIT margins and net profit came in much higher than expected. The

company posted 0.3% sequential growth in USD revenues to US$4,374mn V/s US

$4,441mn expected. In rupee terms, revenues came in at

`29,284cr V/s

`29,707cr, down by 0.1% QoQ. The constant currency growth (CC) came in at

1.0% QoQ, while volume growth of QoQ of 1.3%.

The key geographies like USA QoQ grew by 1.4% on CC terms, while Latin

America posted a dip of 0.2% QoQ on CC terms. In Europe, the UK posted a dip

of 0.1% QoQ on CC terms, while Continental Europe posted a 3.7% QoQ growth

on CC terms. India posted a QoQ dip of 7.6%, while Asia Pacific posted a QoQ

growth of 3.5% and MEA posted a QoQ growth of 2.2% ( all on CC terms) .

In terms of domain, the BSFI (40.4% of sales), posted a CC QoQ growth of 1.2%,

Retail & CPG

(13.4% of sales) posted a CC QoQ de-growth of

3.1%.

Communication & Media (11.4% of sales) posted a CC QoQ growth of 2.0%,

Manufacturing (10.7% of sales) posted a CC QoQ growth of 3.1%, while

Healthcare posted a CC QoQ growth of 4.7%.

On operating front, the EBIT margins came in at 26.2% V/s 25.2% expected an

expansion of 93bps. Consequently, PAT came in at `6,586cr V/s `6,377cr, a rise

of 4.3% QoQ. In terms of the client additions the US$50+mn client addition was

one, US$ 20mn+ was 6. The attrition rate was 11.9% in the IT services. Given the

underperformance by the company this quarter, we would soon revise our

numbers and target price. We maintain our Buy.

Y/E

Sales OPM

PAT

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

March

(` cr)

(%)

(` cr)

(`)

(%)

(x)

FY2017E

1,21,684

27.3

26,432

135.0

33.2

17.2

5.7

13.2

3.6

FY2018E

1,36,286

27.3

29,369

150.1

33.9

15.5

5.3

11.5

3.2

www.angelbroking.com

Market Outlook

October 14, 2016

Economic and Political News

 CPI inflation for the month of September fell to 4.31%

 CCEA decides to cut ethanol prices for petrol blending from Dec. 1

 India sees taxation levels cooperation among BRICS countries

Corporate News

 CERA sanitary posts 40.6% rise in PAT for Q2FY17.

 Cox & Kings-owned Meininger Hotels has signed an agreement with Beni

Stabili SIIQ to set up a 491-bed hotel in Milan, Italy.

 German drug giant Boehringer Ingelheim has entered into an agreement with

Mumbai-based Lupin to co-market empagliflozin, a novel drug for the

treatment of Type-II diabetes in adults.

Quarterly Bloomberg Brokers Consensus Estimate

Infosys Ltd Consol - October 14, 2016

Particulars ( ` cr)

2QFY17E

2QFY16

y-o-y (%)

1QFY17 q-o-q (%)

Net sales

17,049

15,635

9.0

16,782

1.6

EBITDA

4,457

4,351

2.4

4,447

0.2

EBITDA margin (%)

26.1

27.8

26.5

Net profit

3,429

3,398

0.9

3,436

(0.2)

Ultratech Cement Ltd - Oct 17, 2016

Particulars ( ` cr)

2QFY17E

2QFY16

y-o-y (%)

1QFY17 q-o-q (%)

Net sales

6,375

5,621

13.4

6,182

3.1

EBITDA

1,374

989

38.9

1,423

(3.4)

EBITDA margin (%)

21.6

17.6

23.0

Net profit

722

394

83.3

775

(6.8)

LIC Housing Finance Ltd - October 20, 2016

Particulars ( ` cr)

2QFY17E

2QFY16

y-o-y (%)

1QFY17 q-o-q (%)

Net profit

455

412

10.6

408

11.6

www.angelbroking.com

Market Outlook

October 14, 2016

Top Picks ★★★★★

Large Cap

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

To outpace battery industry growth due to better technological

Amara Raja Batteries

17,706

1,037

1,174

13.3

products leading to market share gains in both the

automotive OEM and replacement segments.

Uptick in defense capex by government when coupled with

Bharat Electronics

29,858

1,244

1,414

13.7

BELs strong market positioning, indicate that good times are

ahead for BEL.

The stock is trading at attractive valuations and is factoring all

HCL Tech

1,13,319

803

1,000

24.5

the bad news.

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

Infosys

2,41,650

1,052

1,370

30.2

to be a US$20bn in FY2020.

Source: Company, Angel Research

Mid Cap

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

Among the top 4 players in the consumer durables segment.

Bajaj Electricals

2,588

256

306

19.5

Improved profitability backed by turn around in E&P

segment. Strong order book lends earnings visibility.

With a focus on the low and medium income (LMI) consumer

Dewan Housing Finance

8,289

284

325

14.4

segment, the company has increased its 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 as risk of

Equitas Holdings

5,812

173

235

35.6

dilution remains low. Attractive valuations considering

growth.

Economic recovery to have favourable impact on advertising

& circulation revenue growth. Further, the acquisition of a

Jagran Prakashan

6,517

199

225

12.9

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

revenue growth.

Speedier execution and speedier sales, strong revenue

Mahindra Lifespace

1,809

441

522

18.4

visibilty in short-to-long run, attractive valuations

Massive capacity expansion along with rail advantage at ICD

Navkar Corporation

2,738

192

265

38.0

as well CFS augurs well for the company

Market leadership in Hindi news genre and no. 2 viewership

ranking in English news genre, exit from the radio business,

TV Today Network

1,940

325

363

11.6

and anticipated growth in ad spends by corporates to benefit

the stock.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

October 14, 2016

Key Upcoming Events

Result Calendar

Date

Company

Oct 14, 2016

Infosys

Oct 17, 2016

UltraTech Cement

Oct 19, 2016

KPIT Cummins, NIIT, Hind. Zinc

Oct 20, 2016

LIC Housing Fin.

Oct 21, 2016

ACC, Wipro, Mindtree, Cairn India, Kirloskar Engines India Ltd

Oct 22, 2016

Persistent, L G Balakrishnan & Bros

Oct 24, 2016

Axis Bank

Oct 25, 2016

HDFC Bank, Kotak Mah. Bank, Asian Paints, Dr Reddy's

Oct 26, 2016

Exide Industries, LMW, HDFC, Dabur India, Cadila Healthcare, Indoco Remedies

Source: Bloomberg, Angel Research

Global economic events release calendar

Date

Time

Country

Event Description

Unit

Period

Bloomberg Data

Last Reported Estimated

Oct 14, 2016

Producer Price Index (mom)

% Change

Sep

(0.30)

2:30PM Euro Zone

Euro-Zone CPI (YoY)

Sep F

0.40

12:00PM India

Monthly Wholesale Prices YoY%

% Change

Sep

3.74

3.90

Oct 17, 2016 7:00AM China

Consumer Price Index (YoY)

% Change

Sep

1.30

1.60

6:45PM US

Industrial Production

Sep

(0.43)

0.20

Oct 18, 2016 6:00PM US

Consumer price index (mom)

% Change

Sep

0.20

0.30

2:00PM UK

CPI (YoY)

% Change

Sep

0.60

Oct 19, 2016 6:00PM US

Housing Starts

Thousands

Sep

1,142.00

1,170.00

6:00PM US

Building permits

Thousands

Sep

1,152.00

1,163.00

2:00PM UK

Jobless claims change

% Change

Sep

2.40

7:30AM China

Industrial Production (YoY)

% Change

Sep

6.30

6.40

7:30AM China

Real GDP (YoY)

% Change

6.70

Oct 20, 2016 7:30PM US

Existing home sales

Million

Sep

5.33

5.34

7:30PM Euro Zone

Euro-Zone Consumer Confidence

Value

Oct A

(8.20)

Oct 21, 2016 5:15PM Euro Zone

ECB announces interest rates

Oct 20

Oct 24, 2016 1:00PM Germany

PMI Services

Value

Oct P

50.90

1:00PM Germany

PMI Manufacturing

Value

Oct P

54.30

Oct 25, 2016 7:30PM US

Consumer Confidence

S.A./ 1985=100

Oct

104.10

101.50

Oct 26, 2016 7:30PM US

New home sales

Thousands

Sep

609.00

590.00

Oct 27, 2016 2:00PM UK

GDP (YoY)

% Change

3Q A

2.10

Oct 28, 2016 6:00PM US

GDP Qoq (Annualised)

% Change

3Q A

1.40

2.10

Oct 31, 2016 3:30PM Euro Zone

Euro-Zone GDP s.a. (QoQ)

% Change

3Q A

0.30

Source: Bloomberg, Angel Research

Stock Watch

October 14, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Agri / Agri Chemical

Rallis

Neutral

227

4,408

1,937

2,164

13.3

14.3

9.0

11.0

25.2

20.6

4.4

3.8

18.4

19.8

2.3

2.0

United Phosphorus

Neutral

669

33,890

15,176

17,604

18.5

37.4

44.6

17.9

15.0

3.5

2.9

21.4

21.2

2.3

2.0

Auto & Auto Ancillary

Ashok Leyland

Buy

111

22,568

22,407

26,022

10.6

5.2

6.4

15.2

12.4

3.4

2.9

23.6

24.7

1.1

0.9

Bajaj Auto

Neutral

2,824

81,710

25,093

27,891

19.5

19.2

143.9

162.5

19.6

17.4

5.5

4.7

30.3

29.4

3.0

2.6

Bharat Forge

Neutral

917

21,341

7,726

8,713

20.5

21.2

35.3

42.7

26.0

21.5

4.8

4.3

18.9

20.1

2.8

2.5

Eicher Motors

Neutral

25,888

70,315

16,583

20,447

17.5

18.0

598.0

745.2

43.3

34.7

14.8

11.3

41.2

38.3

4.1

3.2

Gabriel India

Neutral

119

1,702

1,544

1,715

9.0

9.3

5.4

6.3

21.9

18.8

4.1

3.7

18.9

19.5

1.1

0.9

Hero Motocorp

Neutral

3,494

69,761

31,253

35,198

15.3

15.0

172.3

192.1

20.3

18.2

7.4

6.4

38.9

37.0

2.1

1.8

Jamna Auto Industries Neutral

216

1,723

1,486

1,620

9.8

9.9

15.0

17.2

14.4

12.5

3.1

2.7

21.8

21.3

1.2

1.1

L G Balakrishnan & Bros Neutral

594

933

1,302

1,432

11.6

11.9

43.7

53.0

13.6

11.2

1.9

1.7

13.8

14.2

0.8

0.7

Mahindra and Mahindra Neutral

1,369

85,034

46,534

53,077

11.6

11.7

67.3

78.1

20.3

17.5

3.3

2.9

15.4

15.8

1.8

1.5

Maruti

Neutral

5,724

172,917

69,186

82,217

14.7

14.4

198.5

241.4

28.8

23.7

5.6

4.6

20.2

20.0

2.2

1.8

Minda Industries

Neutral

340

2,695

2,728

3,042

9.0

9.1

68.2

86.2

5.0

3.9

1.1

0.9

23.8

24.3

1.0

0.9

Motherson Sumi

Neutral

322

45,175

45,896

53,687

7.8

8.3

13.0

16.1

24.7

20.0

8.0

6.3

34.7

35.4

1.1

0.9

Rane Brake Lining

Neutral

1,237

979

511

562

11.3

11.5

28.1

30.9

44.0

40.0

6.7

6.1

15.3

15.0

2.1

1.9

Setco Automotive

Neutral

554

741

837

13.0

15.2

17.0

2.7

2.4

0.4

15.8

16.3

1.1

1.0

Tata Motors

Neutral

544

157,151

300,209

338,549

8.9

8.4

42.7

54.3

12.8

10.0

2.0

1.7

15.6

17.2

0.6

TVS Motor

Neutral

384

18,250

13,390

15,948

6.9

7.1

12.8

16.5

30.1

23.2

7.5

5.9

26.3

27.2

1.4

1.2

Amara Raja Batteries

Accumulate

1,037

1,174

17,706

5,429

6,471

17.5

17.6

35.3

43.5

29.4

23.8

6.7

5.5

25.3

24.8

3.1

2.5

Exide Industries

Neutral

188

15,959

7,439

8,307

15.0

8.1

9.3

23.2

20.2

3.2

2.9

14.3

16.7

1.8

1.6

Apollo Tyres

Neutral

224

11,379

12,877

14,504

14.3

13.9

21.4

23.0

10.4

9.7

1.6

1.4

16.4

15.2

1.1

1.0

Ceat

Neutral

1,388

5,615

7,524

8,624

13.0

12.7

131.1

144.3

10.6

9.6

2.0

1.7

19.8

18.6

0.8

0.7

JK Tyres

Neutral

158

3,577

7,455

8,056

15.0

21.8

24.5

7.2

6.4

1.5

1.2

22.8

21.3

0.6

0.5

Swaraj Engines

Neutral

1,340

1,664

660

810

15.2

16.4

54.5

72.8

24.6

18.4

7.7

7.0

31.5

39.2

2.3

1.9

Subros

Neutral

131

788

1,488

1,681

11.7

11.9

6.4

7.2

20.5

18.3

2.2

2.0

10.8

11.4

0.8

0.7

Indag Rubber

Neutral

203

532

286

326

19.8

16.8

11.7

13.3

17.3

15.2

2.9

2.7

17.8

17.1

1.5

1.3

Capital Goods

ACE

Neutral

438

709

814

4.1

4.6

1.4

2.1

31.6

21.1

1.3

1.2

4.4

6.0

0.8

0.7

BEML

Buy

911

1,157

3,793

3,451

4,055

6.3

9.2

31.4

57.9

29.0

15.7

1.7

1.6

6.3

10.9

1.2

1.0

Bharat Electronics

Accumulate

1,244

1,414

29,858

8,137

9,169

16.8

17.2

58.7

62.5

21.2

19.9

3.3

2.9

44.6

46.3

2.6

2.4

www.angelbroking.com

Stock Watch

October 14, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Capital Goods

Voltas

Accumulate

380

407

12,585

6,511

7,514

7.9

8.7

12.9

16.3

29.5

23.3

5.3

4.7

16.7

18.5

1.7

1.4

BGR Energy

Neutral

114

824

16,567

33,848

6.0

5.6

7.8

5.9

14.7

19.4

0.8

4.7

4.2

0.2

0.1

BHEL

Neutral

132

32,394

28,797

34,742

2.8

2.3

6.9

57.5

19.2

1.0

1.3

4.8

0.8

0.5

Blue Star

Neutral

569

5,424

4,351

5,024

6.4

7.1

17.2

20.6

33.1

27.6

21.6

18.0

23.1

24.1

1.3

1.1

Crompton Greaves

Neutral

4,713

5,777

6,120

5.9

7.0

3.3

4.5

22.8

16.7

1.0

4.4

5.9

0.8

0.7

Greaves Cotton

Neutral

127

3,100

1,755

1,881

16.8

16.9

7.8

8.5

16.3

14.9

3.3

3.0

20.6

20.9

1.5

1.3

Inox Wind

Buy

219

286

4,856

5,605

6,267

15.7

16.4

24.8

30.0

8.8

7.3

2.5

1.8

25.9

24.4

0.9

0.8

KEC International

Neutral

125

3,215

9,294

10,186

7.9

8.1

9.9

11.9

12.6

10.5

1.9

1.6

15.6

16.3

0.6

0.5

Thermax

Neutral

893

10,638

5,421

5,940

7.3

25.7

30.2

34.7

29.6

4.2

3.8

12.2

13.1

1.8

1.7

VATech Wabag

Buy

565

681

3,082

3,136

3,845

8.9

9.1

26.0

35.9

21.8

15.8

2.7

2.3

13.4

15.9

0.9

0.7

Cement

ACC

Neutral

1,633

30,663

11,225

13,172

13.2

16.9

44.5

75.5

36.7

21.6

3.5

3.2

11.2

14.2

2.7

2.3

Ambuja Cements

Neutral

253

50,197

9,350

10,979

18.2

22.5

5.8

9.5

43.6

26.6

3.7

3.3

10.2

12.5

5.4

4.6

India Cements

Neutral

154

4,743

4,364

4,997

18.5

19.2

7.9

11.3

19.5

13.7

1.4

8.0

8.5

1.8

1.6

JK Cement

Neutral

939

6,563

4,398

5,173

15.5

17.5

31.2

55.5

30.1

16.9

3.6

3.1

12.0

15.5

2.0

1.7

J K Lakshmi Cement

Neutral

482

5,671

2,913

3,412

14.5

19.5

7.5

22.5

64.3

21.4

4.0

3.3

12.5

18.0

2.5

2.1

Orient Cement

Neutral

193

3,944

2,114

2,558

18.5

20.5

8.1

11.3

23.8

17.0

3.5

3.0

9.0

14.0

2.5

2.0

UltraTech Cement

Neutral

3,982

109,289

25,768

30,385

21.0

23.5

111.0

160.0

35.9

24.9

4.6

4.0

13.5

15.8

4.3

3.6

Construction

ITNL

Neutral

104

3,413

8,946

10,017

31.0

31.6

8.1

9.1

12.8

11.4

0.5

4.2

5.0

3.7

3.4

KNR Constructions

Neutral

794

2,232

1,385

1,673

14.7

14.0

41.2

48.5

19.3

16.4

3.6

3.1

14.9

15.2

1.7

1.4

Larsen & Toubro

Buy

1,436

1,700

133,874

67,665

77,249

10.7

11.5

57.3

71.2

25.1

20.2

2.3

2.2

12.6

14.3

2.2

1.9

Gujarat Pipavav Port

Neutral

175

8,460

705

788

52.2

51.7

5.0

5.6

35.0

31.3

3.5

3.1

11.2

11.7

9.9

Nagarjuna Const.

Neutral

4,609

8,842

9,775

9.1

8.8

5.3

6.4

15.6

13.0

1.2

1.1

8.2

9.1

0.7

0.6

PNC Infratech

Accumulate

125

143

3,202

2,350

2,904

13.1

13.2

9.0

8.8

13.9

14.2

0.5

15.9

13.9

1.5

1.2

Simplex Infra

Neutral

342

1,690

6,829

7,954

10.5

31.4

37.4

10.9

9.1

1.1

1.0

9.9

13.4

0.7

0.6

Power Mech Projects

Neutral

481

707

1,801

2,219

12.7

14.6

72.1

113.9

6.7

4.2

1.2

1.0

16.8

11.9

0.4

0.3

Sadbhav Engineering

Accumulate

274

298

4,708

3,598

4,140

10.3

10.6

9.0

11.9

30.5

23.1

3.2

2.8

9.9

11.9

1.6

1.4

NBCC

Neutral

258

15,453

7,428

9,549

7.9

8.6

8.2

11.0

31.4

23.4

1.6

1.2

28.2

28.7

1.8

1.3

MEP Infra

Neutral

675

1,877

1,943

30.6

29.8

3.0

4.2

13.9

9.9

6.7

4.5

0.6

1.7

1.6

SIPL

Neutral

105

3,683

1,036

1,252

65.5

66.2

(8.4)

(5.6)

3.9

4.5

(22.8)

(15.9)

11.8

9.8

www.angelbroking.com

Stock Watch

October 14, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Construction

Engineers India

Neutral

254

8,557

1,725

1,935

16.0

19.1

11.4

13.9

22.3

18.3

3.1

3.0

13.4

15.3

3.9

3.5

Financials

Axis Bank

Buy

519

630

123,813

46,932

53,575

3.5

3.4

32.4

44.6

16.0

11.6

2.1

1.8

13.6

16.5

Bank of Baroda

Neutral

154

35,553

19,980

23,178

1.8

11.5

17.3

13.4

8.9

1.5

1.3

8.3

10.1

Canara Bank

Neutral

310

16,857

15,225

16,836

1.8

14.5

28.0

21.4

11.1

1.5

1.2

5.8

8.5

Dewan Housing Finance Accumulate

284

325

8,289

2,225

2,688

2.9

29.7

34.6

9.6

8.2

1.5

1.3

16.1

16.8

Equitas Holdings

Buy

173

235

5,812

939

1,281

11.7

11.5

5.8

8.2

29.9

21.1

2.6

2.3

10.9

11.5

Federal Bank

Neutral

12,122

9,353

10,623

2.9

4.4

5.8

16.0

12.2

1.5

1.4

9.5

11.0

HDFC

Neutral

1,338

211,604

11,475

13,450

3.4

45.3

52.5

29.6

25.5

5.7

5.0

20.2

20.5

HDFC Bank

Accumulate

1,264

1,350

319,987

46,097

55,433

4.5

58.4

68.0

21.6

18.6

3.8

3.2

18.8

18.6

ICICI Bank

Accumulate

241

254

140,304

39,029

45,903

3.3

16.7

16.3

14.4

14.8

1.8

1.6

10.1

12.4

LIC Housing Finance

Neutral

583

29,429

3,712

4,293

2.6

2.5

39.0

46.0

15.0

12.7

2.8

2.4

19.9

20.1

Punjab Natl.Bank

Neutral

138

29,355

23,532

23,595

2.3

2.4

6.8

12.6

20.3

11.0

3.1

2.2

3.3

6.5

RBL Bank

Accumulate

306

325

11,325

1,783

2,309

2.6

12.7

16.4

24.1

18.7

2.6

2.4

12.8

13.3

South Ind.Bank

Neutral

3,106

6,435

7,578

2.5

2.7

3.1

8.5

7.4

1.1

0.9

10.1

11.2

St Bk of India

Neutral

250

193,837

88,650

98,335

2.6

13.5

18.8

18.5

13.3

1.8

1.5

7.0

8.5

Union Bank

Neutral

142

9,786

13,450

14,925

2.3

25.5

34.5

5.6

4.1

0.8

0.7

7.5

10.2

Yes Bank

Neutral

1,255

52,835

8,978

11,281

3.3

3.4

74.0

90.0

17.0

13.9

3.2

2.7

17.0

17.2

FMCG

Asian Paints

Neutral

1,213

116,341

17,128

18,978

16.8

16.4

19.1

20.7

63.5

58.6

22.1

20.8

34.8

35.5

6.7

6.1

Britannia

Neutral

3,324

39,884

9,795

11,040

14.6

14.9

80.3

94.0

41.4

35.4

17.0

13.1

41.2

3.9

3.4

Colgate

Neutral

936

25,454

4,605

5,149

23.4

23.8

26.9

39.3

34.8

21.8

17.0

64.8

66.8

5.5

4.9

Dabur India

Neutral

283

49,766

8,315

9,405

19.8

20.7

8.1

9.2

34.9

30.8

9.7

8.1

31.6

31.0

5.6

5.0

GlaxoSmith Con*

Neutral

6,220

26,159

4,350

4,823

21.2

21.4

179.2

196.5

34.7

31.7

9.2

7.8

27.1

26.8

5.4

4.8

Godrej Consumer

Neutral

1,568

53,391

10,235

11,428

18.4

18.6

41.1

44.2

38.2

35.5

8.5

7.1

24.9

24.8

5.3

4.7

HUL

Neutral

862

186,547

35,252

38,495

17.6

17.4

20.4

21.9

42.2

39.4

34.7

30.4

82.2

77.3

5.1

4.7

ITC

Buy

239

283

288,673

40,059

44,439

39.0

39.2

9.1

10.1

26.3

23.7

7.2

6.3

27.2

26.5

6.7

6.0

Marico

Neutral

277

35,751

6,430

7,349

18.8

19.5

6.4

7.7

43.3

36.0

13.1

11.0

33.2

32.5

5.4

4.6

Nestle*

Neutral

6,540

63,054

10,073

11,807

20.7

21.5

124.8

154.2

52.4

42.4

21.5

19.4

34.8

36.7

6.1

5.2

Tata Global

Neutral

148

9,331

8,675

9,088

9.8

7.4

8.2

20.0

18.0

2.3

2.2

7.9

8.1

1.0

0.9

Procter & Gamble

Accumulate

6,970

7,369

22,625

2,939

3,342

23.2

23.0

146.2

163.7

47.7

42.6

106.7

102.4

25.3

23.5

7.2

6.3

Hygiene

www.angelbroking.com

Stock Watch

October 14, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

HCL Tech^

Buy

803

1,000

113,319

49,242

57,168

20.5

55.7

64.1

14.4

12.5

2.9

2.2

20.3

17.9

2.2

1.8

Infosys

Buy

1,052

1,370

241,650

69,934

79,025

27.5

64.8

72.0

16.2

14.6

3.6

3.3

22.0

22.3

2.9

2.5

TCS

Buy

2,329

3,004

458,814

121,684

136,286

27.3

135.0

150.1

17.3

15.5

5.7

5.3

33.2

33.9

3.5

3.1

Tech Mahindra

Buy

421

700

40,861

30,347

33,685

17.0

37.5

41.3

11.2

10.2

2.5

2.1

21.8

20.7

1.1

0.9

Wipro

Buy

477

680

115,970

51,631

55,822

21.7

17.9

35.9

36.9

13.3

12.9

2.8

2.6

19.0

18.1

1.9

1.7

Media

D B Corp

Neutral

397

7,290

2,297

2,590

27.4

28.2

21.0

23.4

18.9

17.0

4.4

3.8

23.7

23.1

3.0

2.6

HT Media

Neutral

1,992

2,693

2,991

12.6

12.9

7.9

9.0

10.8

9.5

0.9

7.8

8.3

0.3

0.2

Jagran Prakashan

Accumulate

199

225

6,517

2,355

2,635

28.0

10.8

12.5

18.5

16.0

4.0

3.5

21.7

2.8

2.4

Sun TV Network

Neutral

536

21,133

2,850

3,265

70.1

71.0

26.2

30.4

20.5

17.6

5.2

4.6

24.3

25.6

7.0

6.0

Hindustan Media

Neutral

295

2,168

1,016

1,138

24.3

25.2

27.3

30.1

10.8

9.8

2.1

1.8

16.2

15.8

1.5

1.3

Ventures

TV Today Network

Accumulate

325

363

1,940

637

743

27.5

18.4

21.4

17.7

15.2

3.1

2.6

17.4

17.2

2.7

2.2

Metals & Mining

Coal India

Neutral

316

199,439

84,638

94,297

21.4

22.3

24.5

27.1

12.9

11.7

5.4

5.1

42.6

46.0

1.9

1.7

Hind. Zinc

Neutral

243

102,760

14,252

18,465

55.9

48.3

15.8

21.5

15.4

11.3

2.5

2.2

17.0

20.7

7.2

5.6

Hindalco

Neutral

155

32,018

107,899

112,095

7.4

8.2

9.2

13.0

16.9

11.9

0.8

4.8

6.6

0.8

JSW Steel

Neutral

1,769

42,767

53,201

58,779

16.1

16.2

130.6

153.7

13.6

11.5

1.8

1.6

14.0

14.4

1.6

1.4

NMDC

Neutral

117

46,486

6,643

7,284

44.4

47.7

7.1

7.7

16.5

15.2

1.4

8.8

9.2

4.8

4.3

SAIL

Neutral

19,948

47,528

53,738

(0.7)

2.1

(1.9)

2.6

18.6

0.5

(1.6)

3.9

1.3

1.2

Vedanta

Neutral

196

58,108

71,744

81,944

19.2

21.7

13.4

20.1

14.6

9.8

1.3

1.1

8.4

11.3

1.2

0.9

Tata Steel

Neutral

414

40,194

121,374

121,856

7.2

8.4

18.6

34.3

22.3

12.1

1.4

1.3

6.1

10.1

1.0

Oil & Gas

Cairn India

Neutral

224

41,941

9,127

10,632

4.3

20.6

8.8

11.7

25.4

19.1

0.8

3.3

4.2

6.1

5.0

GAIL

Neutral

414

52,464

56,220

65,198

9.3

10.1

27.1

33.3

15.3

12.4

1.4

1.3

9.3

10.7

1.1

0.9

ONGC

Neutral

272

232,752

137,222

152,563

15.0

21.8

19.5

24.1

14.0

11.3

1.2

1.1

8.5

10.1

2.0

1.8

Indian Oil Corp

Neutral

627

152,148

373,359

428,656

5.9

5.5

54.0

59.3

11.6

10.6

1.8

1.6

16.0

15.6

0.6

0.5

Reliance Industries

Neutral

1,058

342,953

301,963

358,039

12.1

12.6

87.7

101.7

12.1

10.4

1.2

1.1

10.7

11.3

1.6

1.3

Pharmaceuticals

Alembic Pharma

Neutral

680

12,824

3,483

4,083

20.2

21.4

24.3

30.4

28.0

22.4

6.4

5.1

25.5

25.3

3.6

3.0

Aurobindo Pharma

Accumulate

821

877

48,054

15,720

18,078

23.7

41.4

47.3

19.8

17.4

5.2

4.0

29.6

26.1

3.3

2.8

Sanofi India*

Neutral

4,211

9,699

2,357

2,692

17.3

153.5

169.2

27.4

24.9

4.7

3.8

25.8

28.4

3.8

3.1

Cadila Healthcare

Neutral

395

40,412

11,126

13,148

22.0

17.1

20.0

23.1

19.7

5.9

4.7

28.8

26.6

3.6

3.0

Cipla

Sell

582

490

46,756

15,378

18,089

17.4

18.4

21.6

27.2

26.9

21.4

3.5

3.0

13.7

15.2

3.2

2.7

www.angelbroking.com

Stock Watch

October 14, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

Pharmaceuticals

Dr Reddy's

Neutral

3,050

50,531

16,043

18,119

23.1

24.7

126.0

157.8

24.2

19.3

3.6

3.1

15.7

17.1

3.1

2.7

Dishman Pharma

Sell

243

3,925

1,718

1,890

22.7

22.8

9.5

11.3

25.6

21.5

2.5

2.2

10.1

10.9

2.7

2.4

GSK Pharma*

Neutral

2,925

24,776

3,528

3,811

16.6

18.8

51.8

59.4

56.5

49.2

15.1

26.3

30.6

6.8

6.3

Indoco Remedies

Sell

311

225

2,865

1,112

1,289

18.2

13.2

15.6

23.6

19.9

4.2

3.6

19.2

2.7

2.3

Ipca labs

Neutral

614

7,750

3,303

3,799

15.3

17.3

19.7

35.5

31.2

3.1

2.8

9.1

9.4

2.5

2.2

Lupin

Buy

1,480

1,809

66,742

15,912

18,644

26.4

26.7

58.1

69.3

25.5

21.4

5.0

4.1

21.4

20.9

4.3

3.5

Sun Pharma

Buy

740

944

178,180

31,129

35,258

30.0

30.9

28.0

32.8

26.4

22.6

4.1

3.4

18.7

18.9

5.3

4.5

Power

Tata Power

Neutral

21,015

36,916

39,557

17.4

27.1

5.1

6.3

15.2

12.3

1.3

1.2

9.0

10.3

1.6

1.4

NTPC

Neutral

144

119,023

86,605

95,545

17.5

20.8

11.8

13.4

12.2

10.8

1.2

10.5

11.1

2.7

Power Grid

Neutral

174

91,265

25,763

29,762

74.3

73.1

14.8

17.3

11.8

10.1

1.8

1.6

16.9

17.5

7.8

7.4

Real Estate

MLIFE

Buy

441

522

1,809

1,152

1,300

22.7

24.6

29.9

35.8

14.8

12.3

1.1

1.0

7.6

8.6

2.3

1.9

Telecom

Bharti Airtel

Neutral

307

122,540

105,086

114,808

34.5

34.7

12.2

16.4

25.1

18.7

1.7

1.6

6.8

8.4

2.1

1.8

Idea Cellular

Neutral

27,366

40,133

43,731

37.2

37.1

6.4

6.5

11.9

11.7

1.0

0.9

8.2

7.6

1.7

1.4

zOthers

Abbott India

Neutral

4,747

10,088

3,153

3,583

14.1

14.4

152.2

182.7

31.2

26.0

153.1

130.8

25.6

26.1

2.9

2.5

Bajaj Electricals

Buy

256

306

2,588

5,099

5,805

5.6

5.9

11.4

14.6

22.5

17.6

3.0

2.7

13.4

15.1

0.5

0.4

Finolex Cables

Neutral

439

6,721

2,883

3,115

12.0

12.1

14.2

18.6

31.0

23.6

16.5

14.4

15.8

14.6

2.0

1.8

Goodyear India*

Neutral

866

1,997

1,598

1,704

10.4

10.2

49.4

52.6

17.5

16.5

80.9

71.0

18.2

17.0

0.9

133.1

Hitachi

Neutral

1,550

4,214

2,081

2,433

8.8

8.9

33.4

39.9

46.4

38.8

37.4

31.2

22.1

21.4

2.0

1.7

Jyothy Laboratories

Neutral

356

6,471

1,440

2,052

11.5

13.0

8.5

10.0

41.9

35.6

10.2

9.4

18.6

19.3

4.8

3.3

Page Industries

Neutral

15,686

17,496

2,450

3,124

20.1

17.6

299.0

310.0

52.5

50.6

349.4

266.7

47.1

87.5

7.2

5.7

Relaxo Footwears

Neutral

441

5,294

2,085

2,469

9.2

8.2

7.6

8.0

58.3

55.5

22.6

19.3

17.9

18.8

2.6

2.2

Siyaram Silk Mills

Neutral

1,484

1,391

1,799

2,040

11.6

11.7

104.9

122.4

14.1

12.1

2.3

2.0

16.4

1.0

0.9

Styrolution ABS India*

Neutral

613

1,079

1,440

1,537

9.2

9.0

40.6

42.6

15.1

14.4

38.6

35.1

12.3

11.6

0.7

0.6

TVS Srichakra

Neutral

3,868

2,962

2,304

2,614

13.7

13.8

231.1

266.6

16.7

14.5

434.6

342.2

33.9

29.3

1.3

1.1

HSIL

Neutral

345

2,497

2,384

2,515

15.8

16.3

15.3

19.4

22.6

17.8

22.4

19.3

7.8

9.3

1.2

1.1

Kirloskar Engines India

Neutral

352

5,087

2,554

2,800

9.9

10.0

10.5

12.1

33.5

29.1

14.0

13.2

10.7

11.7

1.6

1.5

Ltd

M M Forgings

Neutral

445

538

546

608

20.4

20.7

41.3

48.7

10.8

9.1

61.0

54.0

16.6

17.0

0.8

0.7

Banco Products (India)

Neutral

226

1,617

1,353

1,471

12.3

12.4

14.5

16.3

15.6

13.9

21.5

19.4

14.5

14.6

1.1

122.0

Competent Automobiles Neutral

187

115

1,137

1,256

3.1

2.7

28.0

23.6

6.7

7.9

36.0

32.5

14.3

11.5

0.1

www.angelbroking.com

Stock Watch

October 14, 2016

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

FY17E

FY18E

zOthers

Nilkamal

Neutral

1,335

1,992

1,995

2,165

10.7

10.4

69.8

80.6

19.1

16.6

76.3

66.3

16.6

16.5

1.0

0.9

Visaka Industries

Neutral

190

301

1,051

1,138

10.3

10.4

21.0

23.1

9.0

8.2

24.3

22.8

9.0

9.2

0.5

Transport Corporation of

Neutral

177

1,356

2,671

2,911

8.5

8.8

13.9

15.7

12.8

11.3

1.8

1.6

13.7

13.8

0.6

India

Elecon Engineering

Neutral

704

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

Surya Roshni

Neutral

215

942

3,342

3,625

7.8

7.5

17.3

19.8

12.4

10.9

23.6

18.9

10.5

10.8

0.5

MT Educare

Neutral

133

529

366

417

17.7

18.2

9.4

10.8

14.2

12.3

3.1

2.7

22.2

22.3

1.3

1.2

Radico Khaitan

Neutral

140

1,864

1,659

1,802

13.0

13.2

6.3

7.4

22.1

19.0

1.9

1.8

8.6

9.3

1.6

1.4

Garware Wall Ropes

Neutral

534

1,168

873

938

12.9

13.1

30.9

34.9

17.3

15.3

2.7

2.3

15.7

15.2

1.2

1.1

Wonderla Holidays

Neutral

400

2,260

287

355

38.0

40.0

11.3

14.2

35.4

28.2

5.1

4.4

21.4

23.9

7.6

6.1

Linc Pen & Plastics

Neutral

257

380

382

420

9.3

9.5

13.5

15.7

19.1

16.4

3.3

2.8

17.1

17.3

1.1

1.0

The Byke Hospitality

Neutral

184

739

287

384

20.5

7.6

10.7

24.2

17.2

5.1

4.1

20.7

23.5

2.6

1.9

Interglobe Aviation

Neutral

936

33,720

21,122

26,005

14.5

27.6

110.7

132.1

8.5

7.1

50.6

36.1

168.5

201.1

1.6

1.2

Coffee Day Enterprises

Neutral

226

4,655

2,964

3,260

20.5

21.2

4.7

8.0

28.2

2.6

2.4

5.5

8.5

2.0

1.8

Ltd

Navneet Education

Neutral

100

2,383

1,062

1,147

24.0

6.1

6.6

16.4

15.1

3.4

3.0

20.6

19.8

2.3

2.1

Navkar Corporation

Buy

192

265

2,738

408

612

42.9

42.3

6.8

11.5

28.4

16.7

2.0

1.8

6.9

10.5

7.6

5.1

UFO Moviez

Neutral

466

1,286

619

685

33.2

33.4

30.0

34.9

15.6

13.4

2.2

1.9

13.8

13.9

1.8

1.4

VRL Logistics

Neutral

314

2,861

1,902

2,119

16.7

16.6

14.6

16.8

21.5

18.6

4.7

4.1

21.9

22.2

1.6

1.4

Team Lease Serv.

Neutral

1,023

1,748

3,229

4,001

1.5

1.8

22.8

32.8

44.9

31.1

4.8

4.2

10.7

13.4

0.4

0.3

S H Kelkar & Co.

Neutral

299

4,321

1,036

1,160

15.1

15.0

6.1

7.2

48.9

41.6

5.2

4.8

10.7

11.5

4.0

3.6

Quick Heal

Neutral

229

1,603

408

495

27.3

27.0

7.7

8.8

29.6

26.0

2.7

2.8

9.3

10.6

3.1

2.5

Narayana Hrudaya

Neutral

339

6,926

1,873

2,166

11.5

11.7

2.6

4.0

128.1

85.5

7.9

7.1

6.1

8.3

3.8

3.3

Manpasand Bever.

Neutral

708

4,048

836

1,087

19.6

19.4

16.9

23.8

41.9

29.7

5.0

4.4

12.0

14.8

4.6

3.4

Parag Milk Foods

Neutral

295

2,480

1,919

2,231

9.3

9.6

9.5

12.9

31.2

22.8

4.9

4.0

15.5

17.5

1.4

1.2

Mirza International

Buy

113

1,119

1,024

1,148

18.0

6.9

8.0

13.5

11.6

2.3

1.9

16.6

16.2

1.3

1.1

Asian Granito

Buy

279

351

841

1,118

1,220

11.8

12.0

13.0

16.0

21.5

17.5

2.1

1.9

9.7

10.7

1.0

0.9

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 13, 2016

www.angelbroking.com

Market Outlook

October 14, 2016

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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