Market Outlook

October 18, 2016

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian markets are likely to open positive tracking Asian markets and SGX Nifty.

BSE Sensex

(0.5)

(144)

27,530

Nifty

(0.7)

(63)

8,520

U.S. markets finished lower Monday as warnings about accelerating inflation

Mid Cap

(0.9)

(127)

13,292

coupled with crude-oil trading below $50 a barrel overshadowed strong earnings

Small Cap

(0.5)

(69)

13,108

from Bank of America Corp.

Bankex

0.5

110

21,826

European markets traded in negative territory of the majority of Monday's session

and finished the day with moderate losses. Investors were in a cautious mood ahead

Global Indices

Chg (%)

(Pts)

(Close)

of the European Central Bank policy decision on Thursday.

Dow Jones

(0.3)

(52)

18,086

Indian markets fell on Monday, tracking weak cues from Asia and Europe, as a

Nasdaq

(0.3)

(14)

5,200

cautious mood prevailed ahead of earnings, key Chinese data and the ECB's

monetary policy decision due later this week.

FTSE

(0.9)

(66)

6,948

Nikkei

0.3

16,900

News Analysis

Hang Seng

(0.8)

(196)

23,038

 Result review: Lakshmi Vilas Bank

Shanghai Com

(0.7)

(23)

3,041

Detailed analysis on Pg2

Advances / Declines

BSE

NSE

Investor’s Ready Reckoner

Advances

1,281

675

Key Domestic & Global Indicators

Declines

1,545

973

Stock Watch: Latest investment recommendations on 150+ stocks

Unchanged

169

Refer Pg6 onwards

Top Picks

Volumes (` Cr)

CMP

Target

Upside

Company

Sector

Rating

(`)

(%)

BSE

3,884

Amara Raja Batteries Auto & Auto Ancill.

Buy

1,018

1,218

19.6

NSE

20,836

HCL Tech

Buy

809

1,000

23.6

Bharat Electronics

Capital Goods

Accumulate

1,265

1,414

11.8

Net Inflows (` Cr)

Net

Mtd

Ytd

Equitas Holdings

Financials

Buy

180

235

30.4

Navkar Corporation Others

Buy

197

265

34.5

FII

(945)

(582)

49,423

More Top Picks on Pg4

MFs

159

2,266

16,213

Key Upcoming Events

Consensus

Top Gainers

Price (`)

Chg (%)

Date

Region

Event Description

Reading

Expectations

Gvkpil

10.4

Oct 18 US

Consumer Price Index (MoM)

0.20

0.30

Icicibank

259

6.9

Oct 18 US

Building permits

1,152.00

1,165.00

Aban

277

6.2

Oct 19 UK

CPI (YoY)

0.60

0.90

Oct 19 US

Housing Starts

1,142.00

1,175.00

Gmdcltd

103

6.2

Oct 19 UK

Jobless claims change

2.40

3.15

Raymond

611

4.7

Oct 19 China

Industrial Production (YoY)

6.30

6.40

Oct 19 China

Real GDP (YoY)

6.70

6.(

Top Losers

Price (`)

Chg (%)

More Events on Pg5

Niittech

411

(6.5)

Ceatltd

1,287

(6.4)

M&Mfin

351

(5.5)

Mrf

49,842

(4.9)

Zeel

503

(4.7)

As on October 17, 2016

www.angelbroking.com

Market Outlook

October 18, 2016

News Analysis

Lakshmi Vilas Bank net profit up 45% at `65cr

Lakshmi Vilas Bank has posted a 44.6% growth in net profit at `64.8cr during the

quarter ended September 30, 2016, as compared to the net profit of `44.8cr

during the corresponding quarter of previous fiscal year. The total income grew by

19% to `830.3cr during the quarter, as against `697.9cr posted during the

corresponding quarter of previous fiscal year. According to management, the cost

of funding has been declining in the past months. Decrease in overall interest rates

and increase in other income have helped the bank post better numbers.

Non-performing assets surged due to a bill discounting fraud of `75cr and

slippage of an account of a food processing unit to the tune of `61cr. The gross

NPA stood at `546.1cr (2.70 as a percentage) during the quarter as compared to

` 331.8cr (1.89%) during the corresponding quarter. The net NPA increased to

`376.06cr (1.87 as a percentage) as against `175.61 (1.01%) during the same

quarter last year.

Economic and Political News

 Govt approves `234cr project for ferry services in Gujarat

 Indo-Pak tensions hit Pakistan's cotton trade

 Tea Board freezes new e-auction settlement

Corporate News

 Vedanta's power units operate at low capacity on weak demand

 UltraTech Cement Q2 net profit up 25% at `613.64cr

 Sybly Industries' Q2 sales up 48%

Quarterly Bloomberg Brokers Consensus Estimate

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

ACC Ltd - Oct 21, 2016

Particulars ( ` cr)

3QCY16E

3QCY15

y-o-y (%)

2QCY16

q-o-q (%)

Net sales

3,033

2,740

10.7

2,870

5.7

EBITDA

451

314

43.7

457

(1.3)

EBITDA margin (%)

14.9

11.4

15.9

Net profit

245

117

109.7

238

3.2

Wipro Ltd Consol - Oct 21, 2016

Particulars ( ` cr)

2QFY17E

2QFY16

y-o-y (%)

1QFY17

q-o-q (%)

Net sales

13,788

12,514

10.2

13,599

1.4

EBITDA

2,811

2,729

3.0

2,653

6.0

EBITDA margin (%)

20.4

21.8

19.5

Net profit

2,168

2,241

(3.2)

2,052

5.7

www.angelbroking.com

Market Outlook

October 18, 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

17,395

1,018

1,218

19.6

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

30,354

1,265

1,414

11.8

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

1,14,130

809

1,000

23.6

the bad news.

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

Infosys

2,34,759

1,022

1,370

34.0

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

2,604

258

306

18.8

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

8,968

307

350

13.9

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

6,042

180

235

30.4

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

6,556

201

225

12.2

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

revenue growth.

Speedier execution and speedier sales, strong revenue

Mahindra Lifespace

1,771

432

522

20.9

visibilty in short-to-long run, attractive valuations

Massive capacity expansion along with rail advantage at ICD

Navkar Corporation

2,810

197

265

34.5

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

1,925

323

363

12.5

and anticipated growth in ad spends by corporates to benefit

the stock.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

October 18, 2016

Key Upcoming Events

Result Calendar

Date

Company

October 19, 2016 KPIT Cummins, NIIT, Hind. Zinc

October 20, 2016 LIC Housing Fin.

October 21, 2016 ACC, Wipro, Mindtree, Cairn India, Kirloskar Engines India Ltd

October 22, 2016 Persistent, L G Balakrishnan & Bros

October 24, 2016 Axis Bank

October 25, 2016 HDFC Bank, Kotak Mah. Bank, Asian Paints, Dr Reddy's

October 26, 2016 Exide Industries, LMW, HDFC, Dabur India, Cadila Healthcare, Indoco Remedies

Source: Bloomberg, Angel Research

Global economic events release calendar

Bloomberg Data

Date

Time

Country Event Description

Unit

Period

Last Reported Estimated

Oct 18, 2016

6:00 PM

US Consumer price index (mom)

% Change Sep

0.20

0.30

6:00 PM

Building permits

Thousands Sep

1,152.00

1,165.00

Oct 19, 2016

2:00 PM

CPI (YoY)

% Change Sep

0.60

0.90

6:00 PM

Housing Starts

Thousands Sep

1,142.00

1,175.00

2:00 PM

Jobless claims change

% Change Sep

2.40

3.15

7:30 AM

China

Industrial Production (YoY)

% Change Sep

6.30

6.40

7:30 AM

China

Real GDP (YoY)

% Change 3Q

6.70

Oct 20, 2016

6:00 PM

Initial Jobless claims

Thousands Oct 15

246.00

250.00

7:30 PM

Existing home sales

Million

Sep

5.33

5.35

5:15 PM Euro Zone

ECB announces interest rates

% Oct 20

Oct 21, 2016

7:30 PM Euro ZoneEuro-Zone Consumer Confidence

Value Oct A

(8.20)

(8.00)

Oct 24, 2016

1:00 PM Germany

PMI Services

Value Oct P

50.90

1:00 PM Germany

PMI Manufacturing

Value Oct P

54.30

Oct 25, 2016

7:30 PM

New home sales

Thousands Sep

609.00

604.00

Oct 26, 2016

7:30 PM

Consumer Confidence S.A./ 1985=100 Oct

104.10

100.50

Oct 27, 2016

2:00 PM

GDP (YoY)

% Change 3Q A

2.10

Oct 28, 2016

6:00 PM

GDP Qoq (Annualised)

% Change 3Q A

1.40

2.50

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

October 18, 2016

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

9.0

8.3

12.0

9.9

7.8

7.9

10.0

8.0

7.5

7.6

7.2

7.1

8.0

6.6

6.7

7.0

6.4

6.0

5.8

6.0

4.0

1.9

2.0

1.3

2.0

0.3

5.0

4.0

(2.0)

(0.7)

(0.9)

(1.6)

(1.3)

(4.0)

(2.5)

3.0

(3.4)

(6.0)

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

(%)

55.0

7.0

6.1

5.7

5.8

54.0

5.6

5.5

6.0

5.4

5.3

5.0

5.1

53.0

4.8

5.0

4.3

52.0

4.0

51.0

50.0

3.0

49.0

2.0

48.0

1.0

47.0

46.0

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

10.0

7.00

5.0

6.50

0.0

6.00

(5.0)

5.50

(10.0)

5.00

(15.0)

4.50

(20.0)

4.00

(25.0)

(30.0)

3.50

(35.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Market Outlook

October 18, 2016

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

62,696

9.9

12.8

27.1

Russia

Micex

1,957

(2.0)

2.1

13.0

India

Nifty

8,520

(2.2)

(0.0)

4.2

China

Shanghai Composite

3,041

(1.5)

1.7

(3.1)

South Africa

Top 40

44,253

(3.2)

(4.7)

(6.8)

Mexico

Mexbol

47,657

4.1

1.5

7.0

Indonesia

LQ45

933

2.8

6.4

22.9

Malaysia

KLCI

1,654

(1.4)

(0.4)

(2.1)

Thailand

SET 50

940

0.8

(0.3)

5.8

USA

Dow Jones

18,086

(0.7)

(2.4)

5.0

FTSE

6,948

3.2

3.8

9.5

Japan

Nikkei

16,900

1.4

5.0

(7.1)

Germany

DAX

10,504

1.2

4.4

3.5

France

CAC

4,450

1.8

2.8

(9.1)

Source: Bloomberg, Angel Research

www.angelbroking.com

Stock Watch

October 18, 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

229

4,453

1,937

2,164

13.3

14.3

9.0

11.0

25.4

20.8

4.4

3.9

18.4

19.8

2.3

2.1

United Phosphorus

Neutral

687

34,800

15,176

17,604

18.5

37.4

44.6

18.4

15.4

3.6

3.0

21.4

21.2

2.4

2.0

Auto & Auto Ancillary

Ashok Leyland

Buy

111

23,180

22,407

26,022

10.6

5.2

6.4

15.6

12.7

3.5

3.0

23.6

24.7

1.1

0.9

Bajaj Auto

Neutral

2,754

79,700

25,093

27,891

19.5

19.2

143.9

162.5

19.1

17.0

5.4

4.6

30.3

29.4

2.9

2.5

Bharat Forge

Neutral

891

20,733

7,726

8,713

20.5

21.2

35.3

42.7

25.2

20.9

4.7

4.2

18.9

20.1

2.7

2.4

Eicher Motors

Neutral

24,647

66,945

16,583

20,447

17.5

18.0

598.0

745.2

41.2

33.1

14.1

10.7

41.2

38.3

3.9

3.1

Gabriel India

Accumulate

118

130

1,689

1,544

1,715

9.0

9.3

5.4

6.3

21.8

18.7

4.1

3.6

18.9

19.5

1.0

0.9

Hero Motocorp

Neutral

3,404

67,977

31,253

35,198

15.3

15.0

172.3

192.1

19.8

17.7

7.2

6.2

38.9

37.0

2.1

1.8

Jamna Auto Industries Neutral

215

1,719

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

592

929

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

1,313

81,574

46,534

53,077

11.6

11.7

67.3

78.1

19.5

16.8

3.2

2.8

15.4

15.8

1.7

1.5

Maruti

Accumulate

5,600

5,998

169,163

69,186

82,217

14.7

14.4

198.5

241.4

28.2

23.2

5.5

4.5

20.2

20.0

2.1

1.7

Minda Industries

Neutral

335

2,661

2,728

3,042

9.0

9.1

68.2

86.2

4.9

3.9

1.1

0.9

23.8

24.3

1.0

0.9

Motherson Sumi

Neutral

322

45,224

45,896

53,687

7.8

8.3

13.0

16.1

24.7

20.0

8.0

6.4

34.7

35.4

1.1

0.9

Rane Brake Lining

Neutral

1,257

995

511

562

11.3

11.5

28.1

30.9

44.7

40.7

6.8

6.2

15.3

15.0

2.1

1.9

Setco Automotive

Neutral

556

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

547

157,944

300,209

338,549

8.9

8.4

42.7

54.3

12.8

10.1

2.1

1.7

15.6

17.2

0.6

TVS Motor

Neutral

388

18,448

13,390

15,948

6.9

7.1

12.8

16.5

30.4

23.5

7.6

6.0

26.3

27.2

1.4

1.2

Amara Raja Batteries

Buy

1,018

1,218

17,395

5,429

6,471

17.5

17.6

35.3

43.5

28.9

23.4

6.6

5.4

25.3

24.8

3.1

2.5

Exide Industries

Neutral

185

15,746

7,439

8,307

15.0

8.1

9.3

22.9

19.9

3.2

2.9

14.3

16.7

1.7

1.5

Apollo Tyres

Accumulate

209

235

10,639

12,877

14,504

14.3

13.9

21.4

23.0

9.8

9.1

1.5

1.3

16.4

15.2

1.0

0.9

Ceat

Accumulate

1,287

1,450

5,204

7,524

8,624

13.0

12.7

131.1

144.3

9.8

8.9

1.8

1.5

19.8

18.6

0.8

0.7

JK Tyres

Neutral

151

3,421

7,455

8,056

15.0

21.8

24.5

6.9

6.2

1.4

1.2

22.8

21.3

0.6

0.5

Swaraj Engines

Neutral

1,359

1,688

660

810

15.2

16.4

54.5

72.8

24.9

18.7

7.8

7.1

31.5

39.2

2.4

1.9

Subros

Neutral

132

792

1,488

1,681

11.7

11.9

6.4

7.2

20.6

18.4

2.2

2.0

10.8

11.4

0.8

0.7

Indag Rubber

Neutral

197

516

286

326

19.8

16.8

11.7

13.3

16.8

14.8

2.8

2.7

17.8

17.1

1.5

1.3

Capital Goods

ACE

Neutral

430

709

814

4.1

4.6

1.4

2.1

31.1

20.7

1.3

1.2

4.4

6.0

0.8

0.7

BEML

Buy

927

1,157

3,862

3,451

4,055

6.3

9.2

31.4

57.9

29.5

16.0

1.8

1.6

6.3

10.9

1.2

1.0

Bharat Electronics

Accumulate

1,265

1,414

30,354

8,137

9,169

16.8

17.2

58.7

62.5

21.6

20.2

3.3

3.0

44.6

46.3

2.7

2.4

www.angelbroking.com

Stock Watch

October 18, 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

Neutral

392

12,964

6,511

7,514

7.9

8.7

12.9

16.3

30.4

24.0

5.5

4.8

16.7

18.5

1.7

1.5

BGR Energy

Neutral

114

823

16,567

33,848

6.0

5.6

7.8

5.9

14.6

19.3

0.8

4.7

4.2

0.2

0.1

BHEL

Neutral

132

32,247

28,797

34,742

2.8

2.3

6.9

57.3

19.1

1.0

0.9

1.3

4.8

0.8

0.5

Blue Star

Accumulate

572

634

5,459

4,283

5,077

5.9

7.3

14.9

22.1

38.5

25.9

7.5

6.3

20.4

26.4

1.3

1.1

Crompton Greaves

Neutral

4,654

5,777

6,120

5.9

7.0

3.3

4.5

22.5

16.5

1.0

0.9

4.4

5.9

0.8

0.6

Greaves Cotton

Neutral

127

3,090

1,755

1,881

16.8

16.9

7.8

8.5

16.2

14.9

3.2

3.0

20.6

20.9

1.5

1.3

Inox Wind

Buy

226

286

5,023

5,605

6,267

15.7

16.4

24.8

30.0

9.1

7.5

2.5

1.9

25.9

24.4

0.9

0.8

KEC International

Neutral

125

3,221

9,294

10,186

7.9

8.1

9.9

11.9

12.7

10.5

1.9

1.6

15.6

16.3

0.6

0.5

Thermax

Neutral

873

10,396

5,421

5,940

7.3

25.7

30.2

34.0

28.9

4.1

3.8

12.2

13.1

1.8

1.7

VATech Wabag

Buy

553

681

3,015

3,136

3,845

8.9

9.1

26.0

35.9

21.3

15.4

2.7

2.3

13.4

15.9

0.9

0.7

Cement

ACC

Neutral

1,605

30,147

11,225

13,172

13.2

16.9

44.5

75.5

36.1

21.3

3.4

3.2

11.2

14.2

2.7

2.3

Ambuja Cements

Neutral

246

48,936

9,350

10,979

18.2

22.5

5.8

9.5

42.5

25.9

3.6

3.2

10.2

12.5

5.2

4.5

India Cements

Neutral

154

4,717

4,364

4,997

18.5

19.2

7.9

11.3

19.4

13.6

1.4

8.0

8.5

1.8

1.6

JK Cement

Neutral

946

6,618

4,398

5,173

15.5

17.5

31.2

55.5

30.3

17.1

3.6

3.2

12.0

15.5

2.1

1.7

J K Lakshmi Cement

Buy

484

565

5,696

2,913

3,412

14.5

19.5

7.5

22.5

64.5

21.5

4.0

3.3

12.5

18.0

2.5

2.1

Orient Cement

Accumulate

187

215

3,838

2,114

2,558

18.5

20.5

8.1

11.3

23.1

16.6

3.4

2.9

9.0

14.0

2.4

1.9

UltraTech Cement

Neutral

4,009

110,014

25,768

30,385

21.0

23.5

111.0

160.0

36.1

25.1

4.6

4.0

13.5

15.8

4.4

3.6

Construction

ITNL

Neutral

103

3,383

8,946

10,017

31.0

31.6

8.1

9.1

12.7

11.3

0.5

4.2

5.0

3.7

3.4

KNR Constructions

Neutral

782

2,198

1,385

1,673

14.7

14.0

41.2

48.5

19.0

16.1

3.5

3.1

14.9

15.2

1.7

1.4

Larsen & Toubro

Buy

1,447

1,700

134,890

67,665

77,249

10.7

11.5

57.3

71.2

25.3

20.3

2.3

2.2

12.6

14.3

2.2

1.9

Gujarat Pipavav Port

Neutral

174

8,405

705

788

52.2

51.7

5.0

5.6

34.8

31.0

3.4

3.1

11.2

11.6

9.9

Nagarjuna Const.

Neutral

4,447

8,842

9,775

9.1

8.8

5.3

6.4

15.1

12.5

1.2

1.1

8.2

9.1

0.7

0.6

PNC Infratech

Buy

123

143

3,167

2,350

2,904

13.1

13.2

9.0

8.8

13.7

14.0

0.5

0.4

15.9

13.9

1.5

1.2

Simplex Infra

Neutral

334

1,655

6,829

7,954

10.5

31.4

37.4

10.7

8.9

1.1

1.0

9.9

13.4

0.7

0.6

Power Mech Projects

Neutral

480

706

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

271

298

4,649

3,598

4,140

10.3

10.6

9.0

11.9

30.1

22.8

3.2

2.8

9.9

11.9

1.6

1.3

NBCC

Neutral

250

15,012

7,428

9,549

7.9

8.6

8.2

11.0

30.5

22.8

1.5

1.2

28.2

28.7

1.7

1.3

MEP Infra

Neutral

693

1,877

1,943

30.6

29.8

3.0

4.2

14.2

10.2

6.9

4.6

0.6

1.8

1.6

SIPL

Neutral

109

3,825

1,036

1,252

65.5

66.2

(8.4)

(5.6)

4.1

4.6

(22.8)

(15.9)

11.9

9.9

www.angelbroking.com

Stock Watch

October 18, 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

256

8,622

1,725

1,935

16.0

19.1

11.4

13.9

22.5

18.4

3.1

3.0

13.4

15.3

3.9

3.5

Financials

Axis Bank

Buy

519

630

123,837

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

151

34,770

19,980

23,178

1.8

11.5

17.3

13.1

8.7

1.5

1.2

8.3

10.1

Canara Bank

Neutral

305

16,569

15,225

16,836

1.8

14.5

28.0

21.0

10.9

1.5

1.2

5.8

8.5

Dewan Housing Finance Accumulate

307

350

8,968

2,225

2,688

2.9

29.7

34.6

10.4

8.9

1.7

1.4

16.1

16.8

Equitas Holdings

Buy

180

235

6,042

939

1,281

11.7

11.5

5.8

8.2

31.1

22.0

2.7

2.4

10.9

11.5

Federal Bank

Neutral

12,010

9,353

10,623

2.9

4.4

5.8

15.9

12.1

1.5

1.3

9.5

11.0

HDFC

Neutral

1,302

205,842

11,475

13,450

3.4

45.3

52.5

28.7

24.8

5.5

4.9

20.2

20.5

HDFC Bank

Accumulate

1,238

1,350

313,379

46,097

55,433

4.5

58.4

68.0

21.2

18.2

3.7

3.1

18.8

18.6

ICICI Bank

Neutral

259

150,397

39,029

45,903

3.3

16.7

16.3

15.5

15.9

1.9

1.7

10.1

12.4

LIC Housing Finance

Accumulate

578

630

29,157

3,712

4,293

2.6

2.5

39.0

46.0

14.8

12.6

2.8

2.4

19.9

20.1

Punjab Natl.Bank

Neutral

137

29,079

23,532

23,595

2.3

2.4

6.8

12.6

20.1

10.9

3.1

2.2

3.3

6.5

RBL Bank

Buy

308

365

11,383

1,783

2,309

2.6

12.7

16.4

24.2

18.8

2.6

2.4

12.8

13.3

South Ind.Bank

Neutral

3,146

6,435

7,578

2.5

2.7

3.1

8.6

7.5

1.1

0.9

10.1

11.2

St Bk of India

Neutral

253

196,476

88,650

98,335

2.6

13.5

18.8

13.5

1.8

1.6

7.0

8.5

Union Bank

Neutral

138

9,480

13,450

14,925

2.3

25.5

34.5

5.4

4.0

0.8

0.7

7.5

10.2

Yes Bank

Neutral

1,251

52,661

8,978

11,281

3.3

3.4

74.0

90.0

16.9

13.9

3.2

2.7

17.0

17.2

FMCG

Asian Paints

Neutral

1,183

113,464

17,128

18,978

16.8

16.4

19.1

20.7

61.9

57.1

21.6

20.3

34.8

35.5

6.5

5.9

Britannia

Accumulate

3,300

3,626

39,594

9,795

11,040

14.6

14.9

80.3

94.0

41.1

35.1

16.9

13.1

41.2

3.9

3.4

Colgate

Accumulate

913

995

24,821

4,605

5,149

23.4

23.8

26.9

38.3

33.9

21.2

16.6

64.8

66.8

5.3

4.7

Dabur India

Accumulate

272

304

47,805

8,315

9,405

19.8

20.7

8.1

9.2

33.6

29.5

9.3

7.7

31.6

31.0

5.4

4.7

GlaxoSmith Con*

Neutral

6,196

26,058

4,350

4,823

21.2

21.4

179.2

196.5

34.6

31.5

9.2

7.8

27.1

26.8

5.4

4.8

Godrej Consumer

Neutral

1,566

53,341

10,235

11,428

18.4

18.6

41.1

44.2

38.1

35.4

8.5

7.1

24.9

24.8

5.3

4.7

HUL

Neutral

849

183,831

35,252

38,495

17.6

17.4

20.4

21.9

41.6

38.8

34.2

30.0

82.2

77.3

5.0

4.6

ITC

Buy

240

283

290,243

40,059

44,439

39.0

39.2

9.1

10.1

26.4

23.8

7.2

6.3

27.2

26.5

6.7

6.0

Marico

Accumulate

276

300

35,641

6,430

7,349

18.8

19.5

6.4

7.7

43.2

35.9

13.0

11.0

33.2

32.5

5.4

4.6

Nestle*

Neutral

6,772

65,294

10,073

11,807

20.7

21.5

124.8

154.2

54.3

43.9

22.3

20.0

34.8

36.7

6.3

5.3

Tata Global

Neutral

150

9,483

8,675

9,088

9.8

7.4

8.2

20.3

18.3

2.3

2.2

7.9

8.1

1.0

0.9

Procter & Gamble

Accumulate

6,992

7,369

22,695

2,939

3,342

23.2

23.0

146.2

163.7

47.8

42.7

107.1

102.7

25.3

23.5

7.3

6.3

Hygiene

www.angelbroking.com

Stock Watch

October 18, 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

809

1,000

114,130

49,242

57,168

20.5

55.7

64.1

14.5

12.6

3.0

2.3

20.3

17.9

2.2

1.8

Infosys

Buy

1,022

1,370

234,759

69,934

79,025

27.5

64.8

72.0

15.8

14.2

3.5

3.2

22.0

22.3

2.8

2.4

TCS

Buy

2,363

3,004

465,592

121,684

136,286

27.3

135.0

150.1

17.5

15.7

5.8

5.4

33.2

33.9

3.6

3.2

Tech Mahindra

Buy

407

700

39,551

30,347

33,685

17.0

37.5

41.3

10.9

9.9

2.4

2.1

21.8

20.7

1.0

0.9

Wipro

Buy

472

680

114,609

51,631

55,822

21.7

17.9

35.9

36.9

13.1

12.8

2.7

2.5

19.0

18.1

1.9

1.7

Media

D B Corp

Neutral

398

7,316

2,297

2,590

27.4

28.2

21.0

23.4

19.0

17.0

4.4

3.8

23.7

23.1

3.0

2.6

HT Media

Neutral

2,140

2,693

2,991

12.6

12.9

7.9

9.0

11.6

10.2

1.0

0.9

7.8

8.3

0.4

0.2

Jagran Prakashan

Accumulate

201

225

6,556

2,355

2,635

28.0

10.8

12.5

18.6

16.1

4.0

3.5

21.7

2.8

2.5

Sun TV Network

Neutral

526

20,743

2,850

3,265

70.1

71.0

26.2

30.4

20.1

17.3

5.1

4.5

24.3

25.6

6.9

5.9

Hindustan Media

Neutral

295

2,165

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

323

363

1,925

637

743

27.5

18.4

21.4

17.6

15.1

3.1

2.6

17.4

17.2

2.6

2.2

Metals & Mining

Coal India

Neutral

311

196,471

84,638

94,297

21.4

22.3

24.5

27.1

12.7

11.5

5.3

5.0

42.6

46.0

1.8

1.6

Hind. Zinc

Neutral

240

101,387

14,252

18,465

55.9

48.3

15.8

21.5

15.2

11.2

2.5

2.2

17.0

20.7

7.1

5.5

Hindalco

Neutral

151

31,119

107,899

112,095

7.4

8.2

9.2

13.0

16.4

11.6

0.8

0.7

4.8

6.6

0.8

JSW Steel

Neutral

1,722

41,627

53,201

58,779

16.1

16.2

130.6

153.7

13.2

11.2

1.8

1.6

14.0

14.4

1.5

1.3

NMDC

Neutral

115

45,654

6,643

7,284

44.4

47.7

7.1

7.7

16.2

15.0

1.4

8.8

9.2

4.6

4.2

SAIL

Neutral

19,535

47,528

53,738

(0.7)

2.1

(1.9)

2.6

18.2

0.5

(1.6)

3.9

1.3

1.1

Vedanta

Neutral

193

57,219

71,744

81,944

19.2

21.7

13.4

20.1

14.4

9.6

1.2

1.1

8.4

11.3

1.2

0.9

Tata Steel

Neutral

411

39,888

121,374

121,856

7.2

8.4

18.6

34.3

22.1

12.0

1.4

1.3

6.1

10.1

1.0

0.9

Oil & Gas

Cairn India

Neutral

221

41,509

9,127

10,632

4.3

20.6

8.8

11.7

25.2

18.9

0.8

3.3

4.2

6.0

5.0

GAIL

Neutral

428

54,240

56,220

65,198

9.3

10.1

27.1

33.3

15.8

12.8

1.4

1.3

9.3

10.7

1.2

1.0

ONGC

Neutral

278

238,228

137,222

152,563

15.0

21.8

19.5

24.1

14.3

11.6

1.2

8.5

10.1

2.0

1.8

Indian Oil Corp

Neutral

642

155,947

373,359

428,656

5.9

5.5

54.0

59.3

11.9

10.8

1.8

1.7

16.0

15.6

0.6

0.5

Reliance Industries

Neutral

1,060

343,748

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

682

12,864

3,483

4,083

20.2

21.4

24.3

30.4

28.1

22.5

6.4

5.1

25.5

25.3

3.6

3.0

Aurobindo Pharma

Accumulate

809

877

47,364

15,720

18,078

23.7

41.4

47.3

19.6

17.1

5.1

4.0

29.6

26.1

3.2

2.8

Aventis*

Neutral

4,230

9,741

2,357

2,692

17.3

153.5

169.2

27.6

25.0

4.7

3.8

25.8

28.4

3.8

3.1

Cadila Healthcare

Neutral

389

39,824

11,126

13,148

22.0

17.1

20.0

22.8

19.5

5.8

4.6

28.8

26.6

3.6

2.9

Cipla

Sell

584

490

46,965

15,378

18,089

17.4

18.4

21.6

27.2

27.1

21.5

3.5

3.1

13.7

15.2

3.3

2.7

www.angelbroking.com

Stock Watch

October 18, 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

3,028

50,167

16,043

18,119

23.1

24.7

126.0

157.8

24.0

19.2

3.5

3.1

15.7

17.1

3.1

2.7

Dishman Pharma

Sell

240

3,880

1,718

1,890

22.7

22.8

9.5

11.3

25.3

21.3

2.5

2.2

10.1

10.9

2.7

2.4

GSK Pharma*

Neutral

2,959

25,064

3,528

3,811

16.6

18.8

51.8

59.4

57.1

49.8

15.3

15.2

26.3

30.6

6.9

6.4

Indoco Remedies

Sell

314

225

2,890

1,112

1,289

18.2

13.2

15.6

23.8

20.1

4.2

3.6

19.2

2.7

2.3

Ipca labs

Neutral

613

7,730

3,303

3,799

15.3

17.3

19.7

35.4

31.1

3.1

2.8

9.1

9.4

2.5

2.1

Lupin

Buy

1,448

1,809

65,264

15,912

18,644

26.4

26.7

58.1

69.3

24.9

20.9

4.9

4.0

21.4

20.9

4.2

3.4

Sun Pharma

Buy

734

944

176,663

31,129

35,258

30.0

30.9

28.0

32.8

26.2

22.4

4.0

3.3

18.7

18.9

5.3

4.4

Power

Tata Power

Neutral

20,974

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

147

121,579

86,605

95,545

17.5

20.8

11.8

13.4

12.5

11.0

1.3

1.2

10.5

11.1

2.7

2.8

Power Grid

Neutral

176

91,945

25,763

29,762

74.3

73.1

14.8

17.3

11.9

10.2

1.9

1.6

16.9

17.5

7.8

7.5

Real Estate

Prestige Estate

Accumulate

200

210

7,487

4,707

5,105

25.2

26.0

10.3

13.0

19.4

15.4

1.6

1.4

10.3

10.2

2.8

2.4

MLIFE

Buy

432

522

1,771

1,152

1,300

22.7

24.6

29.9

35.8

14.4

12.1

1.1

1.0

7.6

8.6

2.3

1.9

Telecom

Bharti Airtel

Neutral

301

120,422

105,086

114,808

34.5

34.7

12.2

16.4

24.7

18.4

1.7

1.6

6.8

8.4

2.1

1.8

Idea Cellular

Neutral

26,088

40,133

43,731

37.2

37.1

6.4

6.5

11.3

11.2

0.9

8.2

7.6

1.7

1.4

zOthers

Abbott India

Neutral

4,715

10,019

3,153

3,583

14.1

14.4

152.2

182.7

31.0

25.8

152.1

129.9

25.6

26.1

2.9

2.5

Asian Granito

Buy

268

351

806

1,118

1,220

11.8

12.0

13.0

16.0

20.6

16.8

2.0

1.8

9.7

10.7

1.0

0.9

Bajaj Electricals

Buy

258

306

2,604

5,099

5,805

5.6

5.9

11.4

14.6

22.7

17.7

3.0

2.7

13.4

15.1

0.5

0.4

Banco Products (India)

Neutral

223

1,595

1,353

1,471

12.3

12.4

14.5

16.3

15.4

13.7

21.2

19.1

14.5

14.6

1.1

120.2

Coffee Day Enterprises

Neutral

226

4,649

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

Competent Automobiles Neutral

194

119

1,137

1,256

3.1

2.7

28.0

23.6

6.9

8.2

37.3

33.7

14.3

11.5

0.1

Elecon Engineering

Neutral

724

1,482

1,660

13.7

14.5

3.9

5.8

17.1

11.5

4.0

3.7

7.8

10.9

0.8

0.7

Finolex Cables

Neutral

438

6,699

2,883

3,115

12.0

12.1

14.2

18.6

30.9

23.6

16.4

14.3

15.8

14.6

2.0

1.8

Garware Wall Ropes

Neutral

533

1,167

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

Goodyear India*

Neutral

804

1,854

1,598

1,704

10.4

10.2

49.4

52.6

16.3

15.3

75.1

65.9

18.2

17.0

0.8

119.3

Hitachi

Neutral

1,540

4,187

2,081

2,433

8.8

8.9

33.4

39.9

46.1

38.6

37.2

31.0

22.1

21.4

2.0

1.7

HSIL

Neutral

351

2,541

2,384

2,515

15.8

16.3

15.3

19.4

23.0

18.1

22.8

19.6

7.8

9.3

1.2

1.1

Interglobe Aviation

Neutral

935

33,699

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

Jyothy Laboratories

Neutral

359

6,521

1,440

2,052

11.5

13.0

8.5

10.0

42.3

35.9

10.2

9.5

18.6

19.3

4.8

3.4

Kirloskar Engines India

Neutral

350

5,064

2,554

2,800

9.9

10.0

10.5

12.1

33.4

28.9

14.0

13.2

10.7

11.7

1.6

1.4

Ltd

www.angelbroking.com

Stock Watch

October 18, 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

Linc Pen & Plastics

Neutral

261

386

382

420

9.3

9.5

13.5

15.7

19.4

16.6

3.3

2.9

17.1

17.3

1.1

1.0

M M Forgings

Neutral

444

536

546

608

20.4

20.7

41.3

48.7

10.8

9.1

60.9

53.9

16.6

17.0

0.8

0.7

Manpasand Bever.

Neutral

711

4,065

836

1,087

19.6

19.4

16.9

23.8

42.1

29.9

5.1

4.4

12.0

14.8

4.6

3.5

Mirza International

Buy

113

1,124

1,024

1,148

18.0

6.9

8.0

13.5

11.7

2.3

1.9

16.6

16.2

1.3

1.1

MT Educare

Neutral

131

522

366

417

17.7

18.2

9.4

10.8

14.0

12.1

3.1

2.7

22.2

22.3

1.3

1.1

Narayana Hrudaya

Neutral

340

6,943

1,873

2,166

11.5

11.7

2.6

4.0

128.5

85.7

7.9

7.1

6.1

8.3

3.8

3.3

Navkar Corporation

Buy

197

265

2,810

408

612

42.9

42.3

6.8

11.5

29.1

17.1

2.0

1.8

6.9

10.5

7.8

5.2

Navneet Education

Neutral

101

2,394

1,062

1,147

24.0

6.1

6.6

16.5

15.2

3.4

3.0

20.6

19.8

2.3

2.2

Nilkamal

Neutral

1,705

2,544

1,995

2,165

10.7

10.4

69.8

80.6

24.4

21.2

97.4

84.6

16.6

16.5

1.3

1.1

Page Industries

Neutral

15,738

17,554

2,450

3,124

20.1

17.6

299.0

310.0

52.6

50.8

350.5

267.6

47.1

87.5

7.2

5.7

Parag Milk Foods

Neutral

307

2,579

1,919

2,231

9.3

9.6

9.5

12.9

32.5

23.7

5.0

4.2

15.5

17.5

1.5

1.3

Quick Heal

Neutral

234

1,641

408

495

27.3

27.0

7.7

8.8

30.3

26.7

2.8

9.3

10.6

3.2

2.6

Radico Khaitan

Neutral

139

1,847

1,659

1,802

13.0

13.2

6.3

7.4

21.9

18.8

1.9

1.7

8.6

9.3

1.6

1.4

Relaxo Footwears

Neutral

446

5,349

2,085

2,469

9.2

8.2

7.6

8.0

59.0

56.1

22.9

19.5

17.9

18.8

2.7

2.3

S H Kelkar & Co.

Neutral

302

4,368

1,036

1,160

15.1

15.0

6.1

7.2

49.5

42.1

5.3

4.8

10.7

11.5

4.1

3.6

Siyaram Silk Mills

Accumulate

1,497

1,714

1,403

1,799

2,040

11.6

11.7

104.9

122.4

14.3

12.2

2.3

2.0

16.4

1.0

0.9

Styrolution ABS India*

Neutral

612

1,075

1,440

1,537

9.2

9.0

40.6

42.6

15.1

14.4

38.5

35.0

12.3

11.6

0.7

0.6

Surya Roshni

Neutral

216

948

3,342

3,625

7.8

7.5

17.3

19.8

12.5

11.0

23.8

19.1

10.5

10.8

0.5

Team Lease Serv.

Neutral

1,006

1,720

3,229

4,001

1.5

1.8

22.8

32.8

44.2

30.6

4.7

4.1

10.7

13.4

0.4

0.3

The Byke Hospitality

Neutral

184

737

287

384

20.5

7.6

10.7

24.2

17.2

5.1

4.1

20.7

23.5

2.6

1.9

Transport Corporation of

Neutral

178

1,366

2,671

2,911

8.5

8.8

13.9

15.7

12.9

11.4

1.8

1.6

13.7

13.8

0.6

India

TVS Srichakra

Neutral

3,718

2,847

2,304

2,614

13.7

13.8

231.1

266.6

16.1

14.0

417.8

329.0

33.9

29.3

1.2

1.1

UFO Moviez

Neutral

453

1,251

619

685

33.2

33.4

30.0

34.9

15.1

13.0

2.1

1.8

13.8

13.9

1.7

1.4

Visaka Industries

Neutral

214

340

1,051

1,138

10.3

10.4

21.0

23.1

10.2

9.3

27.5

25.7

9.0

9.2

0.6

VRL Logistics

Neutral

313

2,853

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

Wonderla Holidays

Neutral

407

2,299

287

355

38.0

40.0

11.3

14.2

36.0

28.7

5.2

4.5

21.4

23.9

7.7

6.2

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 17, 2016

www.angelbroking.com

Market Outlook

October 18, 2016

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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