Market Outlook

September 22, 2016

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

Indian markets are likely to open on a positive note considering global cues.

BSE Sensex

(0.1)

(16)

28,507

Nifty

0.0

8,777

US Stocks closed on a high note at the end of Wednesday's session as the Federal

Mid Cap

(0.1)

(9)

13,112

Reserve held off from pursuing a rate hike. Stocks were positive across most sectors

Small Cap

0.2

12,821

with the gold indices leading the rally. Oil and gas indices rallied as well due to

increase in the underlying commodity prices.

Bankex

(0.2)

(42)

22,697

UK shares ended in green yesterday as banks shares rallied after the Bank of Japan

Global Indices

Chg (%)

(Pts)

(Close)

announced substantial changes to its monetary policy framework, related to the

adoption of qualitative easing. Barclays rallied more than 3 percent while other

Dow Jones

0.9

164

18,294

bank stocks such as HSBC Holdings, Standard Chartered and Lloyds Banking Group

Nasdaq

1.0

5,295

climbed around 1-2 percent each.

FTSE

0.1

6,835

Indian markets ended on a flat note on Wednesday as investors were wary of

Nikkei

1.9

315

16,808

building positions ahead of the FOMC meeting. The major loser for the session was

Hang Seng

0.6

139

23,670

the PSU Bank index which closed down 1.2%. The metal index continued its rally

Shanghai Com

0.1

3,026

from the previous sessions and closed up 0.67%.

News Analysis

Advances / Declines

BSE

NSE

 ABG Shipyard shareholders reject lenders’ proposal to invoke SDR

Advances

1,433

832

 Orient Paper & Industries to demerge electrical division

Declines

1,311

799

Detailed analysis on Pg2

Unchanged

196

Investor’s Ready Reckoner

Key Domestic & Global Indicators

Volumes (` Cr)

Stock Watch: Latest investment recommendations on 150+ stocks

BSE

3,181

Refer Pg5 onwards

NSE

18,705

Top Picks

Net Inflows (` Cr)

Net

Mtd

Ytd

CMP

Target

Upside

Company

Sector

Rating

(`)

(%)

FII

1,106

3,810

44,479

Amara Raja Batteries Auto & Auto Ancillary

Buy

991

1,174

18.5

MFs

1,010

410

10,519

HCL Tech

Buy

789

1,000

26.7

Bharat Electronics

Capital Goods

Accumulate

1,245

1,414

13.6

Equitas Holdings

Financials

Buy

179

235

31.7

Top Gainers

Price (`)

Chg (%)

Navkar Corporation Others

Buy

196

265

35.0

Edelweiss

121

8.2

More Top Picks on Pg3

Amtekauto

6.1

Jubilant

627

6.0

Key Upcoming Events

Consensus

Infratel

373

4.7

Date

Region

Event Description

Reading

Expectations

Aloktext

3.4

Sep 22 US

FOMC rate decision

0.50

Sep 22 Euro Zone

Euro-Zone Consumer Confidence

(8.50)

(8.20)

Sep 22 Germany

PMI Manufacturing

53.60

53.10

Top Losers

Price (`)

Chg (%)

Sep 23 US

Existing home sales

5.39

5.45

Jisljaleqs

(3.2)

Sep 23 Germany

PMI Services

51.70

52.20

Emamiltd

1,177

(2.8)

Sep 26 US

New home sales

654.00

580.00

Wockpharma

892

(2.2)

Sep 27 US

Consumer Confidence

101.10

98.50

Centralbk

(2.1)

More Events on Pg4

Den

(2.0)

As on September 21, 2016

www.angelbroking.com

Market Outlook

September 22, 2016

News Analysis

ABG Shipyard shareholders reject lenders’ proposal to invoke

SDR

Shareholders of ABG Shipyard rejected a lenders' consortium proposal to invoke

strategic debt restructuring (SDR) in the company. The special resolution put forth

to shareholders mentioned issuance of equity shares to corporate debt

restructuring (CDR) lenders on conversion of the lenders’ outstanding loans to

equity as part of the SDR scheme.

The lenders consortium-led by ICICI Bank-- had proposed to acquire 51 % of the

company through conversion of the `16,397cr debt into equity which would allow

them to take control of the company's management.

ABG Shipyard's CDR was approved in March 2014. The company has been

struggling to resolve the debt issue but has been unable to do so as freight rates

remain depressed globally and locally.

Orient Paper & Industries to demerge electrical division

Orient Paper and Industries has decided to demerge its electrical appliances

division to unlock shareholder value. The company has said that the earlier

conglomerate model of running multiple businesses under one company has not

given then fair valuation. Earlier in 2011, the company carved out its cement

business as Orient Cement when Orient Paper had a market cap of only `1,000cr.

The company after carving out Orient Cement, has crossed combined market cap

`5,500cr, 5.5x the valuation five years ago unlocking significant shareholder

value.

The company has said that the situation has improved for the paper division,

which once went through a difficult period and did not have enough cash flows,

and the management decided it was time to create two focused companies. The

electrical appliances division, which sells fans, lighting products, kitchen

appliances and switchgears, clocks around `1,500cr in annual revenue.

Economic and Political News

 Union cabinet approved the enactment of the Admiralty Bill

 Ministry of Shipping signs contract with German firm to design vessels to

navigate inland waterways

 Indian Navy successfully test Long Range Surface to Air Missile System (LRSAM)

 Union Cabinet approves direct submarine cable link between mainland and

Andaman & Nicobar islands

 Centre approves proposal to allow NHAI, PFC, REC, IREDA,NABARD and

Inland Water Authority to raise `31,300cr via bond issuance

Corporate News

 Uflex Ltd. develops melamine-free packaging film

 MCX signs MOU with Mozambique commodities exchange

 JK Group looking at buyouts to double revenue to $8 bn by 2020

 Jet Airways plans to restart US flights

www.angelbroking.com

Market Outlook

September 22, 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

16,923

991

1,174

18.5

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

29,886

1,245

1,414

13.6

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

1,11,316

789

1,000

26.7

the bad news.

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

Infosys

2,42,718

1,057

1,370

29.6

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

2,692

266

306

14.9

Improved profitability backed by turn around in E&P

segment. Strong order book lends earnings visibility.

Favourable outlook for the AC industry to augur well for

Cooling products business which is out pacing the market

Blue Star

5,008

525

578

10.0

growth. EMPPAC division's profitability to improve once

operating environment turns around.

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

Dewan Housing Finance

8,237

282

325

15.1

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

5,986

179

235

31.7

dilution remains low. Attractive valuations considering

growth.

Expectations of above average monsoon augurs well for

Goodyear India

1,452

629

684

8.7

Goodyear India as it derives ~50% of its turnover from farm

tyre segment.

Economic recovery to have favourable impact on advertising

& circulation revenue growth. Further, the acquisition of a

Jagran Prakashan

6,202

190

225

18.6

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

revenue growth.

Speedier execution and speedier sales, strong revenue

Mahindra Lifespace

1,840

448

522

16.4

visibilty in short-to-long run, attractive valuations

Massive capacity expansion along with rail advantage at ICD

Navkar Corporation

2,799

196

265

35.0

as well CFS augurs well for the company

Earnings boost on back of stable material prices and

Radico Khaitan

1,416

106

125

17.4

favourable pricing environment. Valuation discount to peers

provides additional comfort

Strong brands and distribution network would boost growth

Siyaram Silk Mills

1,181

1,260

1,469

16.6

going ahead. Stock currently trades at an inexpensive

valuation.

Market leadership in Hindi news genre and no. 2 viewership

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

TV Today Network

1,858

312

363

16.5

and anticipated growth in ad spends by corporates to benefit

the stock.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

September 22, 2016

Key Upcoming Events

Global economic events release calendar

Bloomberg Data

Date

Time

Country

Event Description

Unit

Period

Last Reported

Estimated

Sep 22, 2016

6:00 PM

Initial Jobless claims

Thousands

Sep 17

260.00

261.00

7:30 PM

Existing home sales

Million

Aug

5.39

5.45

7:30 PM Euro ZoneEuro-Zone Consumer Confidence

Value

Sep A

(8.50)

(8.20)

Sep 23, 2016

1:00 PM

Germany

PMI Services

Value

Sep P

51.70

52.10

7:30 PM

Consumer ConfidenceS.A./ 1985=100

Sep

101.10

98.50

Sep 26, 2016

1:00 PM

Germany

PMI Manufacturing

Value

Sep P

53.60

53.10

Sep 27, 2016

7:30 PM

New home sales

Thousands

Aug

654.00

594.50

Sep 29, 2016

1:25 PM

Germany Unemployment change (000's)

Thousands

Sep

(7.00)

6:00 PM

GDP Qoq (Annualised)

% Change

2Q T

1.10

1.40

Sep 30, 2016

2:00 PM

GDP (YoY)

% Change

2Q F

2.20

Oct 01, 2016

6:30 AM

China

PMI Manufacturing

Value

Sep

50.40

50.50

Oct 03, 2016

2:00 PM

PMI Manufacturing

Value

Sep

53.30

Oct 04, 2016

11:00 AM

India

RBI Reverse Repo rate

Oct 4

6.00

11:00 AM

India

RBI Repo rate

Oct 4

6.50

11:00 AM

India

RBI Cash Reserve ratio

Oct 4

4.00

Oct 07, 2016

2:00 PM

Industrial Production (YoY)

% Change

Aug

2.10

6:00 PM

Unnemployment rate

% Sep

4.90

6:00 PM

Change in Nonfarm payrolls

Thousands

Sep

151.00

173.00

Oct 10, 2016

India

Imports YoY%

% Change

Sep

(14.09)

India

Exports YoY%

% Change

Sep

(0.30)

Oct 12, 2016

5:30 PM

India

Industrial Production YoY

% Change

Aug

(2.40)

Oct 13, 2016

China

Exports YoY%

% Change

Sep

(2.80)

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

September 22, 2016

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

9.0

12.0

8.3

9.9

7.8

7.9

8.0

7.5

7.6

10.0

7.2

7.1

8.0

6.6

6.7

7.0

6.4

6.0

3.7

5.8

6.0

4.0

1.9

2.0

1.1

2.0

0.3

5.0

4.0

(2.0)

(0.9)

(1.3)

(1.6)

(4.0)

(2.4)

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

6.0

5.4

5.6

5.5

5.0

5.3

5.1

53.0

4.8

5.0

4.4

52.0

4.0

51.0

50.0

3.0

49.0

2.0

48.0

1.0

47.0

46.0

Source: MOSPI, Angel Research

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

Exhibit 5: Exports and imports growth trends

Exhibit 6: Key policy rates

(%)

Exports yoy growth

Imports yoy growth

(%)

Repo rate

Reverse Repo rate

CRR

5.0

7.00

0.0

6.50

(5.0)

6.00

(10.0)

5.50

(15.0)

5.00

(20.0)

4.50

(25.0)

4.00

(30.0)

3.50

(35.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Market Outlook

September 22, 2016

Exhibit 4: Relative performance of indices across globe

Returns (%)

Country

Name of index

Closing price

1YR

Brazil

Bovespa

58,394

(1.2)

16.4

20.3

Russia

Micex

1,998

0.9

4.1

17.5

India

Nifty

8,777

1.2

7.4

12.7

China

Shanghai Composite

3,026

(2.1)

4.7

(2.3)

South Africa

Top 40

44,285

(3.7)

(5.6)

(2.9)

Mexico

Mexbol

46,929

(2.8)

2.5

9.0

Indonesia

LQ45

921

(1.1)

11.9

25.8

Malaysia

KLCI

1,659

(2.1)

1.9

2.8

Thailand

SET 50

948

(3.5)

5.4

4.4

USA

Dow Jones

18,294

(1.4)

2.6

12.4

FTSE

6,835

(0.4)

9.2

14.6

Japan

Nikkei

16,808

1.6

5.3

(10.5)

Germany

DAX

10,436

(0.6)

1.7

7.7

France

CAC

4,410

0.4

(1.3)

(1.0)

Source: Bloomberg, Angel Research

www.angelbroking.com

Stock Watch

September 22, 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

223

4,334

1,937

2,164

13.3

14.3

9.0

11.0

24.8

20.3

4.3

3.8

18.4

19.8

2.2

2.0

United Phosphorus

Neutral

684

34,653

15,176

17,604

18.5

37.4

44.6

18.3

15.3

3.6

3.0

21.4

21.2

2.4

2.0

Auto & Auto Ancillary

Ashok Leyland

Buy

111

23,621

22,407

26,022

10.6

5.2

6.4

15.9

12.9

3.6

3.0

23.6

24.7

1.2

1.0

Bajaj Auto

Neutral

2,903

84,000

25,093

27,891

19.5

19.2

143.9

162.5

20.2

17.9

5.7

4.9

30.3

29.4

3.1

2.7

Bharat Forge

Neutral

899

20,926

7,726

8,713

20.5

21.2

35.3

42.7

25.5

21.1

4.7

4.3

18.9

20.1

2.8

2.4

Eicher Motors

Neutral

24,199

65,726

16,583

20,447

17.5

18.0

598.0

745.2

40.5

32.5

13.8

10.5

41.2

38.3

3.6

2.9

Gabriel India

Neutral

119

1,711

1,544

1,715

9.0

9.3

5.4

6.3

22.1

18.9

4.2

3.7

18.9

19.5

1.1

0.9

Hero Motocorp

Neutral

3,460

69,092

31,253

35,198

15.3

15.0

172.3

192.1

20.1

18.0

7.4

6.3

38.9

37.0

2.1

1.9

Jamna Auto Industries Neutral

222

1,773

1,486

1,620

9.8

9.9

15.0

17.2

14.8

12.9

3.2

2.7

21.8

21.3

1.3

1.2

L G Balakrishnan & Bros Neutral

577

905

1,302

1,432

11.6

11.9

43.7

53.0

13.2

10.9

1.9

1.7

13.8

14.2

0.8

0.7

Mahindra and Mahindra Neutral

1,408

87,419

46,534

53,077

11.6

11.7

67.3

78.1

20.9

18.0

3.4

3.0

15.4

15.8

1.9

1.6

Maruti

Neutral

5,502

166,201

69,186

82,217

14.7

14.4

198.5

241.4

27.7

22.8

5.4

4.4

20.2

20.0

2.1

1.7

Minda Industries

Neutral

301

2,389

2,728

3,042

9.0

9.1

68.2

86.2

4.4

3.5

1.0

0.8

23.8

24.3

0.9

0.8

Motherson Sumi

Neutral

321

42,520

45,896

53,687

7.8

8.3

13.0

16.1

24.7

20.0

7.9

6.3

34.7

35.4

1.0

0.8

Rane Brake Lining

Neutral

1,281

1,014

511

562

11.3

11.5

28.1

30.9

45.6

41.4

7.0

6.3

15.3

15.0

2.1

1.9

Setco Automotive

Neutral

598

741

837

13.0

15.2

17.0

2.9

2.6

0.5

0.4

15.8

16.3

1.2

1.1

Tata Motors

Neutral

550

158,782

300,209

338,549

8.9

8.4

42.7

54.3

12.9

10.1

2.1

1.7

15.6

17.2

0.6

TVS Motor

Neutral

333

15,828

13,390

15,948

6.9

7.1

12.8

16.5

26.1

20.1

6.5

5.1

26.3

27.2

1.2

1.0

Amara Raja Batteries

Buy

991

1,174

16,923

5,429

6,471

17.5

17.6

35.3

43.5

28.1

22.8

6.4

5.2

25.3

24.8

3.0

2.5

Exide Industries

Neutral

192

16,324

7,439

8,307

15.0

8.1

9.3

23.7

20.7

3.3

3.0

14.3

16.7

1.8

1.6

Apollo Tyres

Neutral

215

10,944

12,877

14,504

14.3

13.9

21.4

23.0

10.0

9.4

1.6

1.4

16.4

15.2

1.0

Ceat

Neutral

1,166

4,715

7,524

8,624

13.0

12.7

131.1

144.3

8.9

8.1

1.6

1.4

19.8

18.6

0.7

0.6

JK Tyres

Neutral

148

3,350

7,455

8,056

15.0

21.8

24.5

6.8

6.0

1.4

1.2

22.8

21.3

0.6

0.5

Swaraj Engines

Neutral

1,205

1,496

660

810

15.2

16.4

54.5

72.8

22.1

16.6

6.9

6.3

31.5

39.2

2.1

1.7

Subros

Neutral

133

800

1,488

1,681

11.7

11.9

6.4

7.2

20.8

18.6

2.2

2.0

10.8

11.4

0.8

0.7

Indag Rubber

Neutral

181

476

286

326

19.8

16.8

11.7

13.3

15.5

13.6

2.6

2.5

17.8

17.1

1.3

1.1

Capital Goods

ACE

Neutral

425

709

814

4.1

4.6

1.4

2.1

30.7

20.5

1.3

1.2

4.4

6.0

0.8

0.7

BEML

Buy

900

1,157

3,746

3,451

4,055

6.3

9.2

31.4

57.9

28.7

15.5

1.7

1.6

6.3

10.9

1.2

1.0

Bharat Electronics

Accumulate

1,245

1,414

29,886

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

September 22, 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

379

12,526

6,511

7,514

7.9

8.7

12.9

16.3

29.3

23.2

5.3

4.6

16.7

18.5

1.7

1.5

BGR Energy

Neutral

116

838

16,567

33,848

6.0

5.6

7.8

5.9

14.9

19.7

0.9

0.8

4.7

4.2

0.2

0.1

BHEL

Neutral

144

35,319

28,797

34,742

2.8

2.3

6.9

62.7

20.9

1.1

1.0

1.3

4.8

0.9

0.6

Blue Star

Accumulate

525

578

5,008

4,351

5,024

6.4

7.1

17.2

20.6

30.6

25.5

19.9

16.6

23.1

24.1

1.2

1.0

Crompton Greaves

Neutral

5,061

5,777

6,120

5.9

7.0

3.3

4.5

24.5

17.9

1.1

1.0

4.4

5.9

0.8

0.7

Greaves Cotton

Neutral

133

3,241

1,755

1,881

16.8

16.9

7.8

8.5

17.0

15.6

3.4

3.2

20.6

20.9

1.5

1.4

Inox Wind

Buy

203

286

4,510

5,605

6,267

15.7

16.4

24.8

30.0

8.2

6.8

2.3

1.7

25.9

24.4

0.8

0.7

KEC International

Neutral

124

3,198

9,294

10,186

7.9

8.1

9.9

11.9

12.6

10.5

1.8

1.6

15.6

16.3

0.6

0.5

Thermax

Neutral

884

10,532

5,421

5,940

7.3

25.7

30.2

34.4

29.3

4.2

3.8

12.2

13.1

1.8

1.7

VATech Wabag

Buy

554

681

3,017

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

1,631

30,627

11,225

13,172

13.2

16.9

44.5

75.5

36.7

21.6

3.5

3.2

11.2

14.2

2.8

2.4

Ambuja Cements

Neutral

264

52,441

9,350

10,979

18.2

22.5

5.8

9.5

45.5

27.8

3.8

3.4

10.2

12.5

5.7

4.8

India Cements

Neutral

149

4,580

4,364

4,997

18.5

19.2

7.9

11.3

18.9

13.2

1.4

1.3

8.0

8.5

1.8

1.6

JK Cement

Neutral

795

5,562

4,398

5,173

15.5

17.5

31.2

55.5

25.5

14.3

3.1

2.7

12.0

15.5

1.8

1.5

J K Lakshmi Cement

Neutral

469

5,523

2,913

3,412

14.5

19.5

7.5

22.5

62.6

20.9

3.9

3.2

12.5

18.0

2.5

2.1

Orient Cement

Neutral

195

4,003

2,114

2,558

18.5

20.5

8.1

11.3

24.1

17.3

3.6

3.0

9.0

14.0

2.6

2.0

UltraTech Cement

Neutral

3,963

108,764

25,768

30,385

21.0

23.5

111.0

160.0

35.7

24.8

4.6

4.0

13.5

15.8

4.3

3.6

Construction

ITNL

Neutral

103

3,400

8,946

10,017

31.0

31.6

8.1

9.1

12.8

11.4

0.5

4.2

5.0

3.7

3.5

KNR Constructions

Accumulate

704

802

1,980

1,385

1,673

14.7

14.0

41.2

48.5

17.1

14.5

3.2

2.8

14.9

15.2

1.5

1.2

Larsen & Toubro

Accumulate

1,471

1,700

137,131

67,665

77,249

10.7

11.5

57.3

71.2

25.7

20.7

2.4

2.2

12.6

14.3

2.2

1.9

Gujarat Pipavav Port

Neutral

173

8,339

705

788

52.2

51.7

5.0

5.6

34.5

30.8

3.4

3.1

11.2

11.8

10.1

Nagarjuna Const.

Neutral

4,820

8,842

9,775

9.1

8.8

5.3

6.4

16.4

13.6

1.3

1.2

8.2

9.1

0.7

0.6

PNC Infratech

Buy

122

143

3,129

2,350

2,904

13.1

13.2

9.0

8.8

13.6

13.9

0.5

0.4

15.9

13.9

1.5

1.2

Simplex Infra

Neutral

337

1,666

6,829

7,954

10.5

31.4

37.4

10.7

9.0

1.1

1.0

9.9

13.4

0.7

0.6

Power Mech Projects

Neutral

495

729

1,801

2,219

12.7

14.6

72.1

113.9

6.9

4.4

1.3

1.1

16.8

11.9

0.4

0.3

Sadbhav Engineering

Neutral

288

4,933

3,598

4,140

10.3

10.6

9.0

11.9

32.0

24.2

3.3

2.9

9.9

11.9

1.7

1.4

NBCC

Neutral

254

15,234

7,428

9,549

7.9

8.6

8.2

11.0

31.0

23.1

1.5

1.2

28.2

28.7

1.8

1.3

MEP Infra

Neutral

694

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

102

3,577

1,036

1,252

65.5

66.2

(8.4)

(5.6)

3.8

4.3

(22.8)

(15.9)

11.8

9.8

www.angelbroking.com

Stock Watch

September 22, 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

258

8,678

1,725

1,935

16.0

19.1

11.4

13.9

22.6

18.5

3.1

3.0

13.4

15.3

4.1

3.7

Financials

Axis Bank

Neutral

598

142,728

58,081

66,459

3.5

32.4

44.6

18.5

13.4

2.4

2.1

13.6

16.5

Bank of Baroda

Neutral

165

37,950

19,980

23,178

1.8

11.5

17.3

14.3

9.5

1.6

1.4

8.3

10.1

Canara Bank

Neutral

302

16,401

15,225

16,836

1.8

14.5

28.0

20.8

10.8

1.4

1.2

5.8

8.5

Dewan Housing Finance Accumulate

282

325

8,237

2,225

2,688

2.9

29.7

34.6

9.5

8.2

1.5

1.3

16.1

16.8

Equitas Holdings

Buy

179

235

5,986

939

1,281

11.7

11.5

5.8

8.2

30.8

21.8

2.7

2.4

10.9

11.5

Federal Bank

Neutral

12,199

9,353

10,623

2.9

4.4

5.8

16.1

12.2

1.5

1.4

9.5

11.0

HDFC

Neutral

1,392

220,102

11,475

13,450

3.4

45.3

52.5

30.7

26.5

5.9

5.2

20.2

20.5

HDFC Bank

Neutral

1,293

327,303

46,097

55,433

4.5

58.4

68.0

22.1

19.0

3.9

3.2

18.8

18.6

ICICI Bank

Neutral

270

156,853

39,029

45,903

3.3

16.7

16.3

16.2

16.5

2.0

1.8

10.1

12.4

LIC Housing Finance

Neutral

570

28,776

3,712

4,293

2.6

2.5

39.0

46.0

14.6

12.4

2.7

2.3

19.9

20.1

Punjab Natl.Bank

Neutral

136

26,666

23,532

23,595

2.3

2.4

6.8

12.6

20.0

10.8

3.1

2.2

3.3

6.5

RBL Bank

Accumulate

300

325

11,094

1,783

2,309

2.6

12.7

16.4

23.6

18.3

2.6

2.3

12.8

13.3

South Ind.Bank

Neutral

3,119

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

251

195,117

88,650

98,335

2.6

13.5

18.8

18.6

13.4

1.8

1.6

7.0

8.5

Union Bank

Neutral

141

9,720

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

1,218

51,265

8,978

11,281

3.3

3.4

74.0

90.0

16.5

13.5

3.1

2.7

17.0

17.2

FMCG

Asian Paints

Neutral

1,169

112,159

17,128

18,978

16.8

16.4

19.1

20.7

61.2

56.5

21.3

20.1

34.8

35.5

6.4

5.8

Britannia

Neutral

3,398

40,766

9,795

11,040

14.6

14.9

80.3

94.0

42.3

36.2

17.4

13.4

41.2

4.0

3.5

Colgate

Neutral

969

26,361

4,605

5,149

23.4

23.8

26.9

40.7

36.0

22.5

17.6

64.8

66.8

5.6

5.0

Dabur India

Neutral

289

50,866

8,315

9,405

19.8

20.7

8.1

9.2

35.7

31.4

9.9

8.2

31.6

31.0

5.9

5.2

GlaxoSmith Con*

Neutral

6,128

25,770

4,350

4,823

21.2

21.4

179.2

196.5

34.2

31.2

9.1

7.7

27.1

26.8

5.4

4.8

Godrej Consumer

Neutral

1,605

54,671

10,235

11,428

18.4

18.6

41.1

44.2

39.1

36.3

8.7

7.3

24.9

24.8

5.6

4.9

HUL

Neutral

912

197,423

35,252

38,495

17.6

17.4

20.4

21.9

44.7

41.7

36.7

32.2

82.2

77.3

5.4

5.0

ITC

Accumulate

254

283

306,357

40,059

44,439

39.0

39.2

9.1

10.1

27.9

25.1

7.6

6.7

27.2

26.5

7.3

6.5

Marico

Neutral

288

37,209

6,430

7,349

18.8

19.5

6.4

7.7

45.1

37.5

13.6

11.4

33.2

32.5

5.7

4.9

Nestle*

Neutral

6,322

60,957

10,073

11,807

20.7

21.5

124.8

154.2

50.7

41.0

20.8

18.7

34.8

36.7

5.9

5.0

Tata Global

Neutral

138

8,713

8,675

9,088

9.8

7.4

8.2

18.7

16.8

2.1

2.0

7.9

8.1

0.9

Procter & Gamble

Accumulate

6,800

7,369

22,073

2,939

3,342

23.2

23.0

146.2

163.7

46.5

41.5

104.1

99.9

25.3

23.5

7.0

6.1

Hygiene

www.angelbroking.com

Stock Watch

September 22, 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

789

1,000

111,316

49,242

57,168

20.5

55.7

64.1

14.2

12.3

2.9

2.2

20.3

17.9

2.1

1.7

Infosys

Buy

1,057

1,370

242,718

69,934

79,025

27.5

64.8

72.0

16.3

14.7

3.6

3.3

22.0

22.3

2.9

2.5

TCS

Buy

2,414

3,004

475,563

121,684

136,286

27.3

135.0

150.1

17.9

16.1

5.9

5.5

33.2

33.9

3.7

3.2

Tech Mahindra

Buy

462

700

44,885

30,347

33,685

17.0

37.5

41.3

12.3

11.2

2.7

2.3

21.8

20.7

1.2

1.0

Wipro

Buy

483

680

117,465

51,631

55,822

21.7

17.9

35.9

36.9

13.5

13.1

2.8

2.6

19.0

18.1

2.0

1.7

Media

D B Corp

Neutral

400

7,352

2,297

2,590

27.4

28.2

21.0

23.4

19.1

17.1

4.5

3.9

23.7

23.1

3.0

2.6

HT Media

Neutral

1,926

2,693

2,991

12.6

12.9

7.9

9.0

10.5

9.2

0.9

0.8

7.8

8.3

0.3

0.2

Jagran Prakashan

Buy

190

225

6,202

2,355

2,635

28.0

10.8

12.5

17.6

15.2

3.8

3.3

21.7

2.6

2.3

Sun TV Network

Neutral

487

19,198

2,850

3,265

70.1

71.0

26.2

30.4

18.6

16.0

4.8

4.2

24.3

25.6

6.4

5.4

Hindustan Media

Neutral

284

2,082

1,016

1,138

24.3

25.2

27.3

30.1

10.4

9.4

2.0

1.8

16.2

15.8

1.4

1.2

Ventures

TV Today Network

Buy

312

363

1,858

637

743

27.5

18.4

21.4

17.0

14.6

3.0

2.5

17.4

17.2

2.5

2.1

Metals & Mining

Coal India

Neutral

330

208,598

84,638

94,297

21.4

22.3

24.5

27.1

13.5

12.2

5.6

5.3

42.6

46.0

2.0

1.8

Hind. Zinc

Neutral

220

92,809

14,252

18,465

55.9

48.3

15.8

21.5

13.9

10.2

2.3

2.0

17.0

20.7

6.4

5.0

Hindalco

Neutral

149

30,789

107,899

112,095

7.4

8.2

9.2

13.0

16.2

11.5

0.8

0.7

4.8

6.6

0.8

0.7

JSW Steel

Neutral

1,752

42,348

53,201

58,779

16.1

16.2

130.6

153.7

13.4

11.4

1.8

1.6

14.0

14.4

1.6

1.4

NMDC

Neutral

102

40,619

6,643

7,284

44.4

47.7

7.1

7.7

14.4

13.3

1.3

1.2

8.8

9.2

3.9

3.5

SAIL

Neutral

19,742

47,528

53,738

(0.7)

2.1

(1.9)

2.6

18.4

0.5

(1.6)

3.9

1.3

1.1

Vedanta

Neutral

165

48,992

71,744

81,944

19.2

21.7

13.4

20.1

12.3

8.2

1.1

1.0

8.4

11.3

1.1

0.8

Tata Steel

Neutral

369

35,867

121,374

121,856

7.2

8.4

18.6

34.3

19.9

10.8

1.2

1.1

6.1

10.1

0.9

Oil & Gas

Cairn India

Neutral

192

36,082

9,127

10,632

4.3

20.6

8.8

11.7

21.9

16.5

0.7

3.3

4.2

5.4

4.5

GAIL

Neutral

387

49,077

56,220

65,198

9.3

10.1

27.1

33.3

14.3

11.6

1.3

1.2

9.3

10.7

1.1

0.9

ONGC

Neutral

256

219,021

137,222

152,563

15.0

21.8

19.5

24.1

13.1

10.6

1.1

8.5

10.1

1.9

1.7

Indian Oil Corp

Neutral

572

138,830

373,359

428,656

5.9

5.5

54.0

59.3

10.6

9.6

1.6

1.5

16.0

15.6

0.5

0.4

Reliance Industries

Neutral

1,071

347,379

301,963

358,039

12.1

12.6

87.7

101.7

12.2

10.5

1.3

1.1

10.7

11.3

1.6

1.4

Pharmaceuticals

Alembic Pharma

Neutral

656

12,359

3,483

4,083

20.2

21.4

24.3

30.4

27.0

21.6

6.1

4.9

25.5

25.3

3.4

2.9

Aurobindo Pharma

Accumulate

806

877

47,173

15,720

18,078

23.7

41.4

47.3

19.5

17.0

5.1

4.0

29.6

26.1

3.2

2.8

Aventis*

Neutral

4,277

9,851

2,357

2,692

17.3

153.5

169.2

27.9

25.3

4.7

3.8

25.8

28.4

3.9

3.2

Cadila Healthcare

Neutral

390

39,967

11,126

13,148

22.0

17.1

20.0

22.8

19.5

5.9

4.7

28.8

26.6

3.6

2.9

Cipla

Sell

600

490

48,230

15,378

18,089

17.4

18.4

21.6

27.2

27.8

22.1

3.6

3.1

13.7

15.2

3.3

2.8

www.angelbroking.com

Stock Watch

September 22, 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

3,153

52,236

16,043

18,119

23.1

24.7

126.0

157.8

25.0

20.0

3.7

3.2

15.7

17.1

3.2

2.8

Dishman Pharma

Sell

207

3,346

1,718

1,890

22.7

22.8

9.5

11.3

21.8

18.4

2.1

1.9

10.1

10.9

2.3

2.0

GSK Pharma*

Neutral

2,812

23,822

3,528

3,811

16.6

18.8

51.8

59.4

54.3

47.4

14.5

26.3

30.6

6.6

6.1

Indoco Remedies

Sell

332

225

3,055

1,112

1,289

18.2

13.2

15.6

25.1

21.3

4.5

3.8

19.2

2.8

2.4

Ipca labs

Neutral

591

7,452

3,303

3,799

15.3

17.3

19.7

34.1

30.0

3.0

2.7

9.1

9.4

2.4

2.1

Lupin

Buy

1,546

1,809

69,716

15,912

18,644

26.4

26.7

58.1

69.3

26.6

22.3

5.2

4.2

21.4

20.9

4.4

3.7

Sun Pharma

Buy

778

944

187,289

31,129

35,258

30.0

30.9

28.0

32.8

27.8

23.7

4.3

3.6

18.7

18.9

5.6

4.8

Power

Tata Power

Neutral

20,623

36,916

39,557

17.4

27.1

5.1

6.3

15.0

12.1

1.3

1.2

9.0

10.3

1.6

1.4

NTPC

Neutral

154

126,980

86,605

95,545

17.5

20.8

11.8

13.4

13.1

11.5

1.3

1.2

10.5

11.1

2.8

Power Grid

Neutral

175

91,736

25,763

29,762

74.3

73.1

14.8

17.3

11.9

10.1

1.9

1.6

16.9

17.5

7.9

7.5

Real Estate

Prestige Estate

Accumulate

204

210

7,644

4,707

5,105

25.2

26.0

10.3

13.0

19.8

15.7

1.6

1.5

10.3

10.2

2.7

2.4

MLIFE

Buy

448

522

1,840

1,152

1,300

22.7

24.6

29.9

35.8

15.0

12.5

1.1

1.0

7.6

8.6

2.3

1.9

Telecom

Bharti Airtel

Neutral

322

128,676

105,086

114,808

34.5

34.7

12.2

16.4

26.4

19.6

1.8

1.7

6.8

8.4

2.1

1.9

Idea Cellular

Neutral

30,337

40,133

43,731

37.2

37.1

6.4

6.5

13.2

13.0

1.1

1.0

8.2

7.6

1.8

1.5

zOthers

Abbott India

Neutral

4,690

9,966

3,153

3,583

14.1

14.4

152.2

182.7

30.8

25.7

151.3

129.2

25.6

26.1

2.9

2.5

Bajaj Electricals

Buy

266

306

2,692

5,099

5,805

5.6

5.9

11.4

14.6

23.4

18.3

3.1

2.8

13.4

15.1

0.5

Finolex Cables

Neutral

434

6,644

2,883

3,115

12.0

12.1

14.2

18.6

30.6

23.4

16.3

14.2

15.8

14.6

2.0

1.8

Goodyear India*

Accumulate

629

684

1,452

1,598

1,704

10.4

10.2

49.4

52.6

12.7

12.0

58.8

51.6

18.2

17.0

0.6

82.8

Hitachi

Neutral

1,487

4,043

2,081

2,433

8.8

8.9

33.4

39.9

44.5

37.3

35.9

29.9

22.1

21.4

1.9

1.6

Jyothy Laboratories

Neutral

347

6,288

1,440

2,052

11.5

13.0

8.5

10.0

40.8

34.7

9.9

9.2

18.6

19.3

4.5

3.1

Page Industries

Neutral

15,140

16,886

2,450

3,124

20.1

17.6

299.0

310.0

50.6

48.8

337.2

257.4

47.1

87.5

7.0

5.5

Relaxo Footwears

Neutral

425

5,100

2,085

2,469

9.2

8.2

7.6

8.0

56.2

53.5

21.8

18.6

17.9

18.8

2.5

2.1

Siyaram Silk Mills

Buy

1,260

1,469

1,181

1,799

2,040

11.6

11.7

104.9

122.4

12.0

10.3

2.0

1.7

16.4

0.8

0.7

Styrolution ABS India*

Neutral

599

1,053

1,440

1,537

9.2

9.0

40.6

42.6

14.7

14.1

37.6

34.2

12.3

11.6

0.7

0.6

TVS Srichakra

Neutral

2,898

2,219

2,304

2,614

13.7

13.8

231.1

266.6

12.5

10.9

325.6

256.4

33.9

29.3

1.0

0.8

HSIL

Neutral

348

2,514

2,384

2,515

15.8

16.3

15.3

19.4

22.7

17.9

22.6

19.4

7.8

9.3

1.2

1.1

Kirloskar Engines India

Neutral

329

4,751

2,554

2,800

9.9

10.0

10.5

12.1

31.3

27.2

13.1

12.4

10.7

11.7

1.4

1.2

Ltd

M M Forgings

Neutral

416

502

546

608

20.4

20.7

41.3

48.7

10.1

8.5

57.0

50.4

16.6

17.0

0.8

0.7

Banco Products (India)

Neutral

221

1,584

1,353

1,471

12.3

12.4

14.5

16.3

15.3

13.6

21.1

19.0

14.5

14.6

1.1

118.7

www.angelbroking.com

Stock Watch

September 22, 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

Competent Automobiles Neutral

196

120

1,137

1,256

3.1

2.7

28.0

23.6

7.0

8.3

37.7

34.1

14.3

11.5

0.1

Nilkamal

Neutral

1,355

2,022

1,995

2,165

10.7

10.4

69.8

80.6

19.4

16.8

77.4

67.3

16.6

16.5

1.0

0.9

Visaka Industries

Neutral

200

317

1,051

1,138

10.3

10.4

21.0

23.1

9.5

8.6

25.6

24.0

9.0

9.2

0.6

0.5

Transport Corporation of

Neutral

201

1,537

2,671

2,911

8.5

8.8

13.9

15.7

14.5

12.8

2.0

1.8

13.7

13.8

0.7

0.6

India

Elecon Engineering

Neutral

673

1,482

1,660

13.7

14.5

3.9

5.8

15.8

10.7

3.7

3.4

7.8

10.9

0.8

0.7

Surya Roshni

Neutral

222

972

3,342

3,625

7.8

7.5

17.3

19.8

12.8

11.2

24.4

19.6

10.5

10.8

0.5

MT Educare

Neutral

131

523

366

417

17.7

18.2

9.4

10.8

14.0

12.2

3.1

2.7

22.2

22.3

1.4

1.2

Radico Khaitan

Buy

106

125

1,416

1,659

1,802

13.0

13.2

6.3

7.4

16.8

14.4

1.5

1.3

8.6

9.3

1.3

1.2

Garware Wall Ropes

Neutral

518

1,133

873

938

12.9

13.1

30.9

34.9

16.8

14.8

2.6

2.3

15.7

15.2

1.2

1.1

Wonderla Holidays

Neutral

380

2,146

287

355

38.0

40.0

11.3

14.2

33.6

26.7

4.8

4.2

21.4

23.9

7.3

5.9

Linc Pen & Plastics

Neutral

273

403

382

420

9.3

9.5

13.5

15.7

20.2

17.3

3.5

3.0

17.1

17.3

1.1

1.0

The Byke Hospitality

Neutral

161

645

287

384

20.5

7.6

10.7

21.2

15.0

4.4

3.6

20.7

23.5

2.3

1.7

Interglobe Aviation

Neutral

884

31,839

21,122

26,005

14.5

27.6

110.7

132.1

8.0

6.7

47.8

34.1

168.5

201.1

1.5

1.1

Coffee Day Enterprises

Neutral

232

4,770

2,964

3,260

20.5

21.2

4.7

8.0

28.9

2.7

2.5

5.5

8.5

2.0

1.8

Ltd

Navneet Education

Neutral

103

2,446

1,062

1,147

24.0

6.1

6.6

16.9

15.5

3.5

3.1

20.6

19.8

2.4

2.2

Navkar Corporation

Buy

196

265

2,799

408

612

42.9

42.3

6.8

11.5

29.0

17.1

2.0

1.8

6.9

10.5

7.9

5.2

UFO Moviez

Neutral

468

1,291

619

685

33.2

33.4

30.0

34.9

15.6

13.4

2.2

1.9

13.8

13.9

1.8

1.5

VRL Logistics

Neutral

296

2,697

1,902

2,119

16.7

16.6

14.6

16.8

20.3

17.6

4.4

3.9

21.9

22.2

1.5

1.3

Team Lease Serv.

Neutral

1,116

1,908

3,229

4,001

1.5

1.8

22.8

32.8

49.0

34.0

5.3

4.6

10.7

13.4

0.5

0.4

S H Kelkar & Co.

Neutral

305

4,408

1,036

1,160

15.1

15.0

6.1

7.2

49.9

42.5

5.3

4.9

10.7

11.5

4.2

3.7

Quick Heal

Neutral

222

1,552

408

495

27.3

27.0

7.7

8.8

28.6

25.2

2.7

9.3

10.6

3.0

2.5

Narayana Hrudaya

Neutral

320

6,530

1,873

2,166

11.5

11.7

2.6

4.0

120.8

80.6

7.4

6.7

6.1

8.3

3.6

3.1

Manpasand Bever.

Neutral

712

3,564

836

1,087

19.6

19.4

16.9

23.8

42.1

29.9

5.1

4.4

12.0

14.8

4.0

3.0

Parag Milk Foods

Neutral

322

2,708

1,919

2,231

9.3

9.6

9.5

12.9

34.1

24.9

5.3

4.4

15.5

17.5

1.6

1.4

Mirza International

Buy

113

1,079

1,024

1,148

18.0

6.9

8.0

13.0

11.2

2.2

1.9

16.6

16.2

1.2

1.1

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on September 21, 2016

www.angelbroking.com

Market Outlook

September 22, 2016

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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