Market Outlook

August 24, 2017

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

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

BSE Sensex

0.9

276

31,568

U.S. indices closed in red after ending the previous session substantially higher.

Nifty

0.9

9,853

Selling pressure was somewhat subdued, however, limiting the downside for the

Mid Cap

1.4

205

15,131

major averages. The correction came as trader reacted to comments made by

Small Cap

1.2

187

15,576

President Donald Trump at rally in Phonix, Arizona. Trump pledged to a crowd of

Bankex

1.4

376

27,455

supporters that he would build the controversial wall on the border with Mexico and

said "would shut down U.S. Government if congress doesn’t fund campaign pledge

to build a wall on Mexican border".

Global Indices

Chg (%)

(Pts)

(Close)

U.K. stocks ended a choppy session little changed on Wednesday as a falling pound

Dow Jones

(0.4)

(88)

21,812

buoyed exporters, but the benchmark index still struggled to shake off a downbeat

Nasdaq

(0.3)

(19)

6,278

trend in European equities. The FTSE 100 UKX rose 0.01% to close at 7,383.

FTSE

0.0

7,383

Nikkei

(00.3

19,435

On domestic front, a late bout of buying helped Indian shares finish Wednesday's

session on a strong note. State-run banks soared after the government approved

Hang Seng

0.9

247

27,402

setting up of an alternative mechanism for merger and consolidation of public sector

Shanghai Com

(0.1)

(3)

3,288

banks. The almost all PSU bank witnessed rally of 1-4 percent. Infosys rose over 2

percent to snap a three-session losing streak after ex-CFO V Balakrishnan favored

Advances / Declines

BSE

NSE

bringing in Nandan Nilekani as the chairman of the company. The benchmark BSE

Advances

1,628

1,125

Sensex inched up 0.88 percent at 31,568, while Nifty index climbed 0.89 percent to

finish at 9,852.50.

Declines

1,974

556

Unchanged

131

News Analysis

 Cabinet clears alternative mechanism to oversee PSU bank mergers

Volumes (` Cr)

Detailed analysis is on Pg2

BSE

3,106

NSE

23,817

Investor’s Ready Reckoner

Key Domestic & Global Indicators

#Net Inflows (` Cr)

Net

Mtd

Ytd

Stock Watch: Latest investment recommendations on 150+ stocks

FII

(5(728) (10,493)

47,904

Refer Pg7 onwards

MFs

804

10,828

61,774

Top Picks

CMP

Target

Upside

Company

Sector

Rating

Top Gainers

Price (`)

Chg (%)

(`)

(%)

Blue Star

Capital Goods

Accumulate

734

760

3.6

Denacem

192

9.1

Dewan Housing FinanceFinancials

Buy

468

520

11.1

Icil

109

8.9

Mahindra Lifespace

Real Estate

Buy

412

522

26.8

Fortis

153

7.7

Navkar Corporation

Others

Buy

184

265

43.8

Balkrisind

1,592

7.6

KEI Industries

Capital Goods

Buy

225

258

14.9

More Top Picks on Pg5

Bomdyeing

7.3

Key Upcoming Events

Consensus

Top Losers

Price (`)

Chg (%)

Date

Region

Event Description

Reading

Expectations

Hcl-Insys

245

(4.0)

Aug 24, 2017 US

Initial Jobless claims

232.00

238.00

Aiaeng

1,334

(3.7)

Aug 24, 2017 Germany GDP nsa (YoY)

0.80

Dbcorp

367

(3.3)

Aug 24, 2017 UK

GDP (YoY)

1.70

Aug 25, 2017 US

Existing home sales

5.52

5.55

Videoind

(3.0)

Aug 29, 2017 US

Consumer Confidence

121.10

119.00

Pcjeweller

362

(2.3)

More Events on Pg7

#as on 23^th Aug, 2017

www.angelbroking.com

Market Outlook

August 24, 2017

News Analysis

Bandhan

The finally government moved towards more merger in PSU banks as currently

PSU banks asset quality is worsened and struggling to generate new business.

The Union Cabinet on Wednesday approved an alternative mechanism to oversee

proposals of amalgamation of public sector banks. “The proposals received from

banks for in-principle approval to formulate schemes of amalgamation shall be

placed before the Alternative Mechanism (AM),” said Finance Minister Arun Jaitley,

adding that the decision will be based only on commercial consideration by the

boards of the banks involved.

After getting in-principle approval, the banks will take steps in accordance with the

law and SEBI requirements. “The final scheme will be notified by the Central

government in consultation with the Reserve Bank of India,” he told newspersons

after the Cabinet meeting.

Economic and Political News

 Banks must file for bankruptcy after three months of recovery effort: Viral

Acharya

 Cabinet clears alternative mechanism to oversee PSU bank mergers

 The Centre on Wednesday notified currency notes of the denomination of

₹200

Corporate News

 Reliance Industries: To import 1.6 million tonne ethane from the U.S.,

according to a PTI report

 Hindustan Copper: Resumes copper mine operations in Jharkhand

 Tata Group eyes Essar Steel to regain steel crown (Economic Times)

www.angelbroking.com

Market Outlook

August 24, 2017

Top Picks

Market Cap

CMP

Target

Upside

Company

Rationale

(` Cr)

(`)

(%)

Strong growth in domestic business due to its leadership

in acute therapeutic segment. Alkem expects to launch

Alkem Laboratories

21,587

1,805

2,161

19.7

more products in USA, which bodes for its international

business.

We expect the company would report strong profitability

Asian Granito

1,252

416

480

15.4

owing to better product mix, higher B2C sales and

amalgamation synergy.

Favorable outlook for the AC industry to augur well for

Cooling products business which is out pacing the

Blue Star

7,026

734

760

3.6

market growth. EMPPAC division's profitability to improve

once operating environment turns around.

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

consumer segment, the company has increased its

Dewan Housing Finance

14,677

468

520

11.1

presence in tier-II & III cities where the growth

opportunity is immense.

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

Karur Vysya Bank

8,213

136

160

17.7

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

Increasing share of CASA will help in NIM improvement.

High order book execution in EPC segment, rising B2C

KEI Industries

1,747

225

258

14.9

sales and higher exports to boost the revenues and

profitability

Speedier execution and speedier sales, strong revenue

Mahindra Lifespace

2,113

412

522

26.8

visibility in short-to-long run, attractive valuations

Expected to benefit from the lower capex requirement

Music Broadcast

2,122

372

434

16.7

and 15 year long radio broadcast licensing.

Massive capacity expansion along with rail advantage at

Navkar Corporation

2,628

184

265

43.8

ICD as well CFS augurs well for the company

Strong brands and distribution network would boost

Siyaram Silk Mills

1,823

1,945

2,500

28.5

growth going ahead. Stock currently trades at an

inexpensive valuation.

Market leadership in Hindi news genre and no.

viewership ranking in English news genre, exit from the

TV Today Network

1,464

246

344

40.1

radio business, and anticipated growth in ad spends by

corporates to benefit the stock.

After GST, the company is expected to see higher

volumes along with improving product mix. The Gujarat

Maruti Suzuki

2,28,839

7,575

8,544

12.8

plant will also enable higher operating leverage which

will be margin accretive.

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

August 24, 2017

Key Upcoming Events

Global economic events release calendar

Bl oomberg Data

D ate

Time

C ountry

Event Description

Unit

Period

L ast Reporte d

E stimate d

Aug 24, 2017

6:00 PM US

Initial Jobless claims

Thousands

Aug 19

232.00

238.00

11: 30 AM Germany

GDP nsa (YoY)

% Change

2Q F

0.80

2:00 PM UK

GDP (YoY)

% Change

2Q P

1.70

Aug 25, 2017

7:30 PM US

Existing home sales

Million

Jul

5.52

5.55

Aug 29, 2017

7:30 PM US

Consumer Confidence

S.A./ 1985=100

Aug

121.10

119.00

Aug 30, 2017

6:00 PM US

GDP Qoq (Annualise d)

% Change

2Q S

2.60

2.70

Aug 31, 2017

1:25 PM Germany

Unempl oyment change (000's)

Thousands

Aug

(8.00)

6:30 AM China

PMI Manufacturing

Value

Aug

51.40

51.20

Sep 01, 2017

6:00 PM US

Change in N onfarm payrolls

Thousands

Aug

209.00

180.00

6:00 PM US

Unnemployment rate

Aug

4.30

2:00 PM UK

PMI Manufacturing

Value

Aug

55.10

Sep 05, 2017

2:30 PM Euro Zone

Euro-Zone GDP s.a. (QoQ)

% Change

2Q F

0.60

Sep 07, 2017

5:15 PM Euro Zone

ECB announces interest rates

Sep 7

Sep 08, 2017

India

Exports YoY%

% Change

Aug

3.94

India

Imports YoY%

% Change

Aug

15.40

2:00 PM UK

Industrial Production (YoY)

% Change

Jul

0.30

China

Exports YoY%

% Change

Aug

7.20

Sep 09, 2017

7:00 AM China

Consumer Price Index (YoY)

% Change

Aug

1.40

Sep 12, 2017

2:00 PM UK

CPI (YoY)

% Change

Aug

2.60

5:30 PM India

Industrial Production YoY

% Change

Jul

(0.10)

Sep 13, 2017

2:00 PM UK

Joble ss claims change

% Change

Aug

(4.20)

Producer Price Index (mom)

% Change

Aug

(0.20)

Sep 14, 2017

7:30 AM China

Industrial Production (YoY)

% Change

Aug

6.40

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

August 24, 2017

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

5.7

10.0

6.0

9.1

8.8

4.9

9.0

5.0

7.9

8.0

7.9

7.6

7.5

3.8

8.0

7.3

7.2

4.0

7.0

3.0

2.6

2.8

7.0

6.1

3.0

1.9

6.0

2.0

5.0

1.0

4.0

3.0

(0.1)

(1.0)

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

(%)

6.0

54.0

5.1

52.0

5.0

4.3

4.2

3.9

50.0

3.6

3.7

4.0

3.4

3.2

3.0

48.0

3.0

2.4

2.2

46.0

2.0

1.5

44.0

1.0

42.0

40.0

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

Source: MOSPI, Angel Research

Exhibit 5: Exports and imports growth trends

Exhibit 6: Key policy rates

(%)

Exports yoy growth

Imports yoy growth

(%)

Repo rate

Reverse Repo rate

CRR

60.0

6.50

50.0

6.00

40.0

5.50

30.0

20.0

5.00

10.0

4.50

0.0

4.00

(10.0)

3.50

(20.0)

(30.0)

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Market Outlook

August 24, 2017

Exhibit 4: Relative performance of indices across globe

Returns (%)

C ountry

Name of index

Closing price

1YR

Brazil

Bovespa

70,478

8.3

11.4

19.3

Russia

Micex

1,959

1.4

0.3

(1.4)

India

Nifty

9,853

(0.6)

5.0

13.6

China

Shanghai Composite

3,288

1.4

7.3

7.8

South Africa

Top 40

49,735

4.0

3.5

8.1

Mexico

Mexbol

51,280

(0.7)

3.8

7.4

Indonesia

LQ45

988

1.2

3.4

5.1

Malaysia

KLCI

1,773

0.6

(0.1)

4.3

Thailand

SET 50

1,002

0.3

1.4

2.5

USA

Dow Jones

21,812

1.4

4.2

18.0

FTSE

7,383

0.1

(1.8)

8.3

Japan

Nikkei

19,435

(3.3)

(0.9)

17.1

Germany

DAX

12,174

(0.3)

(3.7)

15.5

France

CAC

5,115

(0.2)

(4.2)

15.3

Source: Bloomberg, Angel Research

www.angelbroking.com

Stock Watch

August 24, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Agri / Agri Chemical

Rallis

Reduce

232

209

4,518

1,873

2,099

15.0

9.5

10.5

24.5

22.1

3.7

3.4

15.8

16.0

2.3

2.1

United Phosphorus

Neutral

816

41,428

18,922

21,949

18.0

18.5

36.2

45.6

22.5

17.9

4.7

3.9

22.7

23.8

2.4

2.0

Auto & Auto Ancillary

Ashok Leyland

Buy

103

124

30,070

23,339

27,240

10.1

10.8

4.7

6.2

22.1

16.5

4.4

3.9

20.0

23.6

1.2

1.0

Bajaj Auto

Accumulate

2,761

3,151

79,880

23,936

27,955

19.5

20.1

142.7

167.3

19.3

16.5

4.2

3.8

21.8

22.8

2.9

2.4

Bharat Forge

Neutral

1,168

27,180

7,637

8,755

21.7

23.2

36.1

47.3

32.4

24.7

5.8

5.0

18.5

20.8

3.4

2.9

Eicher Motors

Neutral

30,648

83,431

19,043

22,837

19.5

19.9

835.4

1,019.0

36.7

30.1

13.7

10.6

40.9

37.8

4.3

3.5

Gabriel India

Neutral

173

2,489

1,782

2,033

9.7

10.2

7.1

8.9

24.4

19.6

4.9

4.2

21.0

22.2

1.3

1.2

Hero Motocorp

Accumulate

3,890

4,129

77,685

32,239

36,878

16.0

15.6

184.4

206.5

21.1

18.8

6.6

5.8

31.3

30.7

2.2

1.9

Jamna Auto Industries Neutral

240

1,911

1,441

1,662

14.4

14.8

13.9

17.6

17.3

13.6

4.7

3.8

30.0

31.0

1.3

1.1

Mahindra and Mahindra Neutral

1,373

85,267

46,971

53,816

13.6

14.0

67.7

79.8

20.3

17.2

2.9

2.6

15.0

15.9

1.7

1.4

Maruti

Accumulate

7,575

8,544

228,839

81,825

101,245

15.0

283.5

356.0

26.7

21.3

5.8

4.8

21.9

22.4

2.5

1.9

Minda Industries

Neutral

779

6,732

4,328

5,084

11.0

11.9

27.3

36.4

28.6

21.4

6.1

4.7

23.1

25.6

1.6

1.4

Motherson Sumi

Neutral

315

66,292

55,937

64,445

10.8

11.4

16.9

21.1

18.6

15.0

4.2

4.3

25.2

25.4

1.2

1.0

Tata Motors

Neutral

380

109,748

303,167

343,649

11.8

13.8

33.1

54.7

11.5

7.0

1.9

1.5

16.9

23.0

0.4

0.3

TVS Motor

Neutral

584

27,757

13,992

16,216

9.0

9.4

17.1

20.3

34.3

28.8

9.1

7.0

29.7

27.7

1.9

1.6

Amara Raja Batteries

Accumulate

765

858

13,074

6,140

7,122

14.3

15.6

29.3

39.0

26.1

19.6

4.5

3.7

17.1

19.0

2.1

1.8

Exide Industries

Neutral

199

16,919

8,689

9,854

15.1

15.2

9.7

11.0

20.6

18.1

3.7

3.2

15.7

16.1

1.7

1.5

Apollo Tyres

Neutral

260

13,245

15,739

17,326

13.3

14.6

20.4

26.7

12.8

9.8

1.5

1.4

20.4

26.7

1.1

1.0

Ceat

Neutral

1,671

6,760

6,661

7,717

11.1

14.2

116.2

178.2

14.4

9.4

2.5

2.1

15.2

21.3

1.1

1.0

JK Tyres

Neutral

143

3,245

8,318

9,239

16.2

16.4

21.0

27.5

6.8

5.2

1.3

1.1

19.1

20.4

0.8

0.7

Swaraj Engines

Neutral

1,956

2,429

788

889

16.4

16.5

71.6

81.0

27.3

24.2

7.9

7.3

29.6

31.0

2.7

2.4

Subros

Neutral

216

1,297

1,855

2,135

11.6

11.8

10.3

14.7

21.1

14.8

3.2

2.7

15.8

19.1

0.9

0.8

Capital Goods

BEML

Neutral

1,806

7,522

4,286

5,194

7.1

8.2

42.9

58.1

42.1

31.1

3.5

3.1

7.6

8.7

1.8

1.5

Bharat Electronics

Neutral

183

40,887

10,258

12,470

19.6

19.5

7.3

8.6

25.1

21.3

0.5

0.4

20.4

21.9

3.5

2.8

Voltas

Neutral

522

17,264

6,778

8,004

9.6

11.0

17.1

22.4

30.5

23.3

7.3

6.4

17.7

19.8

2.2

1.9

BHEL

Neutral

128

31,219

33,200

39,167

6.8

9.5

6.2

11.2

20.6

11.4

0.9

4.6

8.0

0.5

0.4

Blue Star

Neutral

734

7,026

5,101

5,997

6.0

7.0

17.9

26.6

41.0

27.6

8.7

8.0

21.9

29.0

1.4

1.2

CG Power and Industrial

Neutral

5,033

6,555

7,292

7.5

0.8

8,030.0

100.4

1.2

1.3

0.1

1.2

0.9

0.8

Solutions

Greaves Cotton

Neutral

145

3,539

1,778

1,993

14.7

15.1

8.1

9.1

17.9

15.9

4.0

3.8

21.8

23.6

1.8

1.6

www.angelbroking.com

Stock Watch

August 24, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Capital Goods

KEC International

Neutral

299

7,684

9,779

11,113

9.4

9.8

14.2

18.2

21.1

16.4

4.0

3.3

21.1

22.1

1.0

0.9

KEI Industries

Accumulate

225

258

1,747

3,001

3,391

10.0

13.0

16.1

17.3

13.9

3.1

2.6

18.2

18.7

0.8

0.7

Thermax

Neutral

872

10,390

4,125

4,747

10.3

10.8

26.7

31.5

32.7

27.7

3.7

3.3

11.2

12.0

2.2

2.0

VATech Wabag

Accumulate

603

681

3,292

3,867

4,126

9.6

10.0

34.9

39.8

17.3

15.2

2.9

2.5

17.7

17.5

0.9

0.8

Cement

ACC

Neutral

1,803

33,850

12,255

13,350

13.5

14.3

58.0

66.2

31.1

27.2

3.7

3.4

11.5

12.2

2.7

2.5

Ambuja Cements

Neutral

276

54,814

10,250

11,450

17.5

19.0

7.2

8.3

38.3

33.3

2.8

2.6

7.0

7.8

5.1

4.5

India Cements

Neutral

178

5,490

6,135

6,750

14.8

15.2

8.5

11.5

21.0

15.5

1.0

4.8

6.2

1.2

1.1

JK Cement

Neutral

1,013

7,079

4,150

4,775

19.2

20.0

49.0

63.5

20.7

16.0

3.3

2.8

17.0

18.5

2.1

1.8

J K Lakshmi Cement

Neutral

416

4,892

3,422

3,757

15.5

17.0

13.5

23.2

30.8

17.9

3.2

2.8

10.8

15.5

1.8

1.6

Orient Cement

Neutral

151

3,088

2,215

3,233

16.8

17.0

5.9

6.9

25.6

21.9

2.0

1.8

10.8

10.1

2.4

1.6

UltraTech Cement

Neutral

3,964

108,818

28,250

35,150

20.2

23.5

77.5

122.2

51.2

32.4

4.3

3.9

9.6

14.8

4.3

3.5

Construction

KNR Constructions

Neutral

216

3,040

1,846

2,203

14.5

12.1

13.7

17.9

15.8

1.0

0.8

17.5

16.7

1.7

1.4

Larsen & Toubro

Neutral

1,124

157,477

95,787

109,476

10.2

11.6

44.5

50.8

25.3

22.2

3.2

2.9

12.9

13.1

2.2

1.9

Gujarat Pipavav Port

Neutral

132

6,377

739

842

61.6

62.7

5.1

6.2

25.9

21.5

3.2

3.1

12.7

14.9

8.1

7.0

PNC Infratech

Neutral

140

3,588

2,040

2,935

13.0

6.4

9.0

21.9

15.5

0.6

0.5

9.7

12.2

1.8

1.3

Simplex Infra

Neutral

494

2,442

6,012

6,619

11.6

11.7

21.1

31.0

23.5

16.0

1.6

1.5

6.5

8.6

0.9

0.8

Sadbhav Engineering

Accumulate

268

298

4,594

3,823

4,426

10.7

10.8

10.3

11.8

26.0

22.7

3.1

2.7

10.1

10.5

1.5

1.3

NBCC

Neutral

205

18,459

9,099

12,706

6.4

7.3

9.6

28.2

21.4

1.2

1.0

27.5

30.5

1.9

1.4

MEP Infra

Neutral

114

1,858

2,403

2,910

18.3

16.8

2.4

6.1

48.6

18.8

18.4

12.4

35.2

55.8

1.9

1.6

SIPL

Neutral

103

3,628

2,060

2,390

46.8

47.7

(5.8)

(3.1)

3.9

4.4

(14.2)

(2.3)

6.5

6.1

Engineers India

Neutral

151

10,186

1,795

2,611

21.1

22.4

5.9

8.1

25.6

18.7

1.8

12.9

16.1

4.1

2.6

Financials

Axis Bank

Buy

503

580

120,588

32,558

35,843

3.5

3.2

27.8

41.0

18.1

12.3

2.0

1.7

11.4

14.9

Bank of Baroda

Neutral

141

32,466

22,533

26,079

2.4

12.0

20.9

11.7

6.7

0.8

0.7

6.6

11.0

Canara Bank

Neutral

336

20,075

17,925

20,235

2.0

2.1

18.5

36.5

18.2

9.2

0.7

3.4

6.2

Can Fin Homes

Neutral

2,785

7,414

586

741

3.5

107.8

141.0

25.8

19.8

5.7

4.6

24.1

25.6

Cholamandalam Inv. &

Accumulate

1,147

1,230

17,928

2,826

3,307

6.3

53.7

64.6

21.4

17.8

3.6

3.1

18.3

18.9

Fin. Co.

Dewan Housing Finance Accumulate

468

520

14,677

2,676

3,383

2.4

2.7

37.4

49.7

12.5

9.4

1.6

1.4

13.8

16.2

Equitas Holdings

Buy

157

235

5,333

1,125

1,380

9.6

9.8

1.5

6.0

104.9

26.2

2.4

2.2

2.4

8.2

Federal Bank

Buy

107

125

20,729

4,896

5,930

2.8

3.1

5.4

7.6

19.9

14.1

1.7

1.6

8.5

11.0

www.angelbroking.com

Stock Watch

August 24, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Financials

HDFC Bank

Neutral

1,773

456,586

55,236

63,253

4.5

4.4

68.9

82.4

25.8

21.5

4.5

3.7

18.7

18.5

ICICI Bank

Accumulate

298

315

191,378

42,361

51,378

3.6

3.9

18.4

25.7

16.2

11.6

1.8

1.7

11.3

15.0

Karur Vysya Bank

Buy

136

160

8,213

3,289

3,630

3.7

3.9

10.8

14.1

12.6

9.7

1.5

1.3

12.5

14.7

LIC Housing Finance

Neutral

660

33,325

4,895

6,332

3.4

3.7

50.7

66.8

13.0

9.9

2.6

2.2

21.7

23.8

Punjab Natl.Bank

Neutral

142

30,302

23,708

25,758

2.1

5.9

16.4

24.2

8.7

0.7

3.0

8.3

RBL Bank

Neutral

509

19,312

2,309

2,888

2.6

2.5

16.4

19.1

31.1

26.7

3.9

3.5

13.3

13.8

Repco Home Finance

Buy

650

825

4,063

496

597

4.4

4.2

38.5

48.7

16.9

13.3

3.0

2.5

19.6

20.6

South Ind.Bank

Neutral

4,899

3,195

3,567

3.0

3.1

3.0

3.8

9.0

7.1

0.9

0.8

10.5

11.9

St Bk of India

Neutral

279

240,618

105,827

121,056

2.4

2.5

16.1

25.6

17.3

10.9

1.4

1.2

6.6

9.9

Union Bank

Neutral

134

9,222

14,650

16,225

2.3

23.1

32.5

5.8

4.1

0.4

7.1

9.2

Yes Bank

Neutral

1,722

78,816

11,088

13,138

3.0

2.9

84.0

99.3

20.5

17.3

3.1

2.7

16.3

16.8

FMCG

Akzo Nobel India

Neutral

1,755

8,417

3,164

3,607

13.8

13.7

58.6

67.9

30.0

25.8

7.4

6.5

24.5

25.1

2.5

2.2

Asian Paints

Neutral

1,140

109,373

17,603

20,615

18.6

2,128.9

2,543.3

0.5

11.3

9.5

28.0

28.9

6.0

5.1

Britannia

Neutral

4,251

51,035

9,690

11,278

14.8

15.4

84.0

101.0

50.6

42.1

18.4

14.7

40.6

39.0

5.2

4.5

Colgate

Neutral

1,086

29,544

4,420

5,074

24.9

25.3

28.6

32.8

38.0

33.1

15.0

12.1

43.8

40.5

6.4

5.6

Dabur India

Neutral

299

52,581

8,346

9,344

19.6

19.9

7.8

9.0

38.3

33.2

7.7

7.0

25.2

24.8

5.9

5.2

GlaxoSmith Con*

Neutral

5,346

22,482

5,072

5,760

18.2

18.4

176.3

199.2

30.3

26.8

6.4

5.8

21.2

21.7

3.8

3.3

Godrej Consumer

Neutral

905

61,647

10,171

11,682

20.8

21.5

21.7

27.1

41.7

33.4

9.4

8.1

22.3

23.4

6.2

5.3

HUL

Neutral

1,188

257,041

37,077

41,508

20.3

21.8

5,189.9

6,318.5

0.2

36.2

30.9

74.8

82.0

6.8

6.1

ITC

Neutral

282

343,668

44,588

49,853

37.0

37.3

9.6

11.0

29.4

25.7

7.2

6.9

25.1

27.3

7.2

6.4

Marico

Neutral

316

40,727

6,788

7,766

18.5

19.2

7.1

8.5

44.5

37.1

15.6

13.3

36.9

38.0

5.8

5.1

Nestle*

Neutral

6,625

63,871

10,083

11,182

20.0

20.9

119.7

141.3

55.3

46.9

195.1

178.3

36.7

39.8

6.0

5.4

Tata Global

Neutral

197

12,405

7,121

7,641

11.9

12.3

6.9

8.0

28.5

24.6

1.9

1.8

6.8

7.2

1.5

1.4

Procter & Gamble

Neutral

8,200

26,618

3,034

3,579

27.1

27.7

167.7

198.8

48.9

41.3

13.1

11.3

28.8

29.5

8.2

6.9

Hygiene

HCL Tech^

Buy

878

1,014

125,297

52,342

57,053

20.9

62.8

67.6

14.0

13.0

3.1

2.7

22.4

20.6

2.1

1.8

Infosys

Buy

895

1,179

205,464

73,963

80,619

26.0

64.4

69.3

13.9

12.9

2.7

2.5

19.7

19.6

2.2

2.0

TCS

Accumulate

2,493

2,651

491,228

127,403

138,870

27.6

144.5

156.0

17.3

16.0

5.1

4.8

29.7

29.8

3.5

3.2

Tech Mahindra

Buy

430

533

41,931

31,015

33,496

15.0

35.6

38.1

12.1

11.3

2.1

1.9

17.0

16.3

1.1

1.0

Wipro

Neutral

291

141,541

58,536

61,858

20.3

18.2

19.1

16.0

15.2

2.5

2.2

14.6

13.4

2.3

2.2

www.angelbroking.com

Stock Watch

August 24, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Media

D B Corp

Neutral

371

6,820

2,404

2,625

30.5

31.5

23.7

26.9

15.7

13.8

3.7

3.1

23.5

22.8

2.7

2.4

HT Media

Neutral

2,128

2,589

2,830

15.1

15.4

8.3

10.9

11.0

8.4

0.9

0.8

8.4

10.4

0.4

0.2

Jagran Prakashan

Buy

175

225

5,724

2,541

2,835

28.5

28.7

12.7

14.1

13.8

12.4

2.9

2.5

21.3

21.4

2.1

1.8

Sun TV Network

Neutral

715

28,157

3,238

3,789

51.9

55.1

30.9

38.0

23.1

18.8

6.6

5.8

30.0

31.0

8.2

6.9

Hindustan Media

Neutral

267

1,960

1,002

1,074

23.3

23.5

29.2

33.8

9.2

7.9

1.4

1.2

15.6

15.4

1.0

0.7

Ventures

TV Today Network

Buy

246

344

1,465

667

727

27.7

18.6

20.1

13.2

12.2

2.1

15.6

17.3

1.7

1.6

Music Broadcast Limited Buy

372

434

2,122

271

317

91.0

109.0

6.0

10.0

62.0

37.2

3.9

3.5

6.5

9.3

7.4

6.1

Metals & Mining

Coal India

Neutral

241

149,630

82,301

91,235

17.0

18.0

17.1

20.5

14.1

11.8

2.7

2.5

45.0

55.0

1.5

1.3

Hind. Zinc

Neutral

287

121,140

22,108

24,555

57.0

58.0

22.1

26.3

13.0

10.9

4.2

3.4

32.0

35.0

4.5

3.7

Hindalco

Neutral

231

51,825

102,350

105,355

13.5

14.5

21.5

24.5

10.7

9.4

1.5

1.3

15.0

15.2

1.1

1.0

JSW Steel

Neutral

240

57,917

64,500

68,245

21.1

21.5

20.1

21.2

11.9

11.3

2.2

1.9

1.6

NMDC

Neutral

123

38,932

10,209

11,450

47.0

48.0

11.1

12.1

11.1

10.2

1.5

3.3

3.0

SAIL

Neutral

25,070

54,100

63,555

3.0

10.0

(10.0)

1.5

40.5

0.8

1.5

1.2

Vedanta

Neutral

300

111,367

81,206

87,345

28.0

29.0

26.5

33.5

11.3

8.9

2.6

2.2

2.1

1.8

Tata Steel

Neutral

633

61,517

121,445

126,500

16.2

17.2

65.4

81.3

9.7

7.8

1.5

1.3

1.0

0.9

Oil & Gas

GAIL

Neutral

384

64,980

53,115

52,344

14.2

15.3

30.0

31.1

12.8

12.4

1.6

1.5

0.9

ONGC

Neutral

160

204,819

83,111

84,934

44.2

44.9

16.4

16.9

9.7

9.4

1.2

1.1

2.3

Indian Oil Corp

Neutral

426

206,910

396,116

432,560

8.5

8.8

40.1

42.2

10.6

10.1

1.8

1.7

0.7

0.6

Reliance Industries

Neutral

1,581

514,223

257,711

267,438

17.0

18.2

89.1

89.5

17.8

17.7

1.7

1.5

1.7

1.6

Pharmaceuticals

Alembic Pharma

Buy

506

600

9,532

3,903

4,584

18.2

19.2

21.8

27.2

23.2

18.6

4.2

3.5

19.8

20.6

2.5

2.1

Alkem Laboratories Ltd

Buy

1,805

2,161

21,587

6,901

7,850

18.4

19.1

85.0

100.5

21.2

18.0

4.3

3.6

20.2

20.1

3.1

2.7

Aurobindo Pharma

Buy

699

823

40,924

17,086

19,478

22.1

22.0

44.7

51.4

15.6

13.6

3.5

2.8

24.7

22.7

2.5

2.2

Aventis*

Neutral

3,993

9,195

2,508

2,862

16.8

139.9

153.8

28.5

26.0

4.1

3.4

23.5

25.8

3.3

2.7

Cadila Healthcare

Reduce

463

426

47,348

11,584

13,228

20.3

20.4

18.7

21.3

24.7

21.7

5.5

4.5

24.6

22.9

3.9

3.4

Cipla

Sell

560

461

45,030

16,619

19,437

15.4

16.2

19.7

24.3

28.4

23.0

3.2

2.9

12.0

13.2

2.9

2.4

Dr Reddy's

Buy

2,030

2,419

33,640

15,844

17,973

17.6

18.2

91.7

111.0

22.1

18.3

2.5

2.3

11.9

13.0

2.3

2.1

GSK Pharma*

Neutral

2,381

20,164

3,260

3,651

15.0

18.0

46.1

58.6

51.6

40.6

10.6

10.9

20.0

26.5

6.1

5.5

Indoco Remedies

Sell

190

153

1,747

1,154

1,310

14.9

11.3

12.7

16.8

14.9

2.4

2.1

15.0

1.6

1.4

Ipca labs

Buy

411

620

5,185

3,593

4,022

14.5

15.5

19.4

25.2

21.2

16.3

1.9

1.7

9.5

11.2

1.5

1.3

www.angelbroking.com

Stock Watch

August 24, 2017

Company Name

Reco

CMP

Target

Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

FY18E FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

FY18E

FY19E

Pharmaceuticals

Lupin

Buy

955

1,467

43,133

18,657

21,289

21.3

23.3

52.8

66.7

18.1

14.3

2.7

2.3

16.3

17.5

2.3

1.9

Natco Pharma

Accumulate

723

796

12,598

1,836

1,946

31.8

28.9

22.1

20.6

32.7

35.1

6.6

5.9

20.1

16.7

6.7

6.3

Sun Pharma

Buy

469

712

112,465

32,899

36,451

26.9

25.4

31.6

32.3

14.8

14.5

2.6

2.3

18.7

18.8

3.0

2.6

Syngene International

Buy

438

557

8,756

1,402

1,823

32.8

36.0

15.9

20.7

27.6

21.2

5.2

4.2

18.7

20.0

6.2

4.8

Power

Tata Power

Neutral

21,300

32,547

33,806

20.5

4.7

5.4

16.8

14.7

1.6

1.4

10.5

1.6

NTPC

Neutral

170

139,967

86,070

101,246

28.3

30.7

12.9

16.2

13.2

10.5

1.4

1.3

10.6

12.4

3.0

2.7

Power Grid

Neutral

219

114,729

29,183

32,946

89.7

90.0

18.0

20.8

12.2

10.5

2.0

1.8

17.7

18.2

7.9

7.3

Real Estate

Prestige Estate

Neutral

260

9,750

4,607

5,146

21.0

22.2

7.9

9.8

32.9

26.5

2.0

1.9

10.3

12.0

3.3

3.0

MLIFE

Buy

412

522

2,113

487

590

12.3

17.8

21.0

31.2

19.6

13.2

1.0

5.2

7.4

3.1

2.5

Telecom

Bharti Airtel

Neutral

432

172,608

97,903

105,233

36.0

36.3

9.3

11.1

46.4

39.1

2.2

2.1

5.0

5.6

2.7

2.5

Idea Cellular

Neutral

32,658

35,012

37,689

27.1

27.7

(4.4)

(2.7)

1.4

1.5

(6.8)

(4.6)

2.2

2.0

zOthers

Abbott India

Neutral

4,289

9,114

3,244

3,723

14.9

16.1

167.5

209.4

25.6

20.5

5.7

4.7

23.7

24.8

2.5

2.1

Asian Granito

Buy

416

480

1,252

1,169

1,286

12.5

16.0

19.7

26.0

21.1

2.8

2.5

10.7

11.6

1.3

1.2

Bajaj Electricals

Buy

340

395

3,449

4,646

5,301

6.7

7.6

16.1

22.3

21.1

15.3

3.5

2.9

16.4

19.2

0.7

Banco Products (India)

Neutral

206

1,473

1,530

1,695

13.2

12.7

19.0

20.0

10.8

10.3

1.7

1.5

0.2

0.9

96.6

Coffee Day Enterprises

Neutral

242

4,988

3,494

3,913

17.4

18.0

4.8

5.7

42.5

2.2

2.0

0.1

1.9

1.7

Ltd

Elecon Engineering

Neutral

537

171

201

15.0

16.2

36.0

43.0

1.3

1.1

0.1

2.5

2.1

Garware Wall Ropes

Neutral

868

1,899

928

1,003

15.2

39.4

43.2

22.0

20.1

3.6

3.1

16.5

15.4

1.9

1.7

Goodyear India*

Neutral

820

1,891

1,717

1,866

11.8

12.3

47.9

49.8

17.1

16.5

2.6

2.3

15.6

15.7

0.8

114.1

Hitachi

Neutral

2,008

5,459

2,355

2,715

10.3

10.8

49.0

60.9

41.0

33.0

9.6

7.6

0.2

2.4

2.0

HSIL

Neutral

368

2,657

2,240

2,670

14.6

15.0

17.0

22.0

21.6

16.7

1.8

1.7

0.1

1.4

1.1

Interglobe Aviation

Neutral

1,217

44,003

22,570

27,955

14.2

15.0

63.6

81.8

19.1

14.9

10.1

8.5

0.5

0.6

1.6

1.2

Jyothy Laboratories

Neutral

372

6,763

1,781

2,044

14.1

15.0

9.4

10.5

39.8

35.5

8.5

8.0

0.2

4.0

3.4

Linc Pen & Plastics

Neutral

242

358

420

462

9.3

15.3

17.1

15.9

14.2

2.7

2.8

16.9

19.5

0.9

0.8

M M Forgings

Neutral

593

715

542

642

20.1

21.0

41.6

56.8

14.3

10.4

2.0

1.7

0.1

0.2

1.7

1.5

Mirza International

Neutral

155

1,859

1,148

1,285

18.0

8.0

9.4

19.2

16.5

3.2

2.7

16.3

16.1

1.8

1.6

Navkar Corporation

Buy

184

265

2,628

561

617

41.5

11.5

12.7

16.0

14.5

1.7

1.5

10.5

10.4

5.4

4.6

Nilkamal

Neutral

1,574

2,349

2,317

2,525

11.4

11.1

96.0

105.0

16.4

15.0

2.8

2.4

0.2

1.0

0.9

Parag Milk Foods

Neutral

238

2,004

1,987

2,379

7.6

9.0

12.4

18.3

19.2

13.0

2.7

2.4

8.2

13.2

1.1

1.0

www.angelbroking.com

Stock Watch

August 24, 2017

Company Name

Reco

CMP

Target Mkt Cap

Sales ( Čcr )

OPM(%)

EPS (Č)

PER(x)

P/BV(x)

RoE(%)

EV/Sales(x)

(Č)

Price ( Č)

( Č cr )

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

zOthers

Radico Khaitan

Neutral

162

2,151

1,811

1,992

13.2

8.1

8.8

20.0

18.4

2.0

2.2

10.1

12.0

1.5

1.4

Relaxo Footwears

Neutral

500

6,011

1,981

2,310

13.7

14.5

12.0

15.5

41.7

32.3

8.1

6.6

0.2

3.1

2.7

Siyaram Silk Mills

Buy

1,945

2,500

1,823

1,769

1,981

12.7

113.1

131.1

17.2

14.8

2.7

2.3

15.5

1.2

1.1

Styrolution ABS India* Neutral

899

1,581

1,800

1,980

8.0

8.1

42.0

46.2

21.4

19.5

2.4

2.1

0.1

1.0

0.9

Surya Roshni

Neutral

276

1,209

4,870

5,320

7.7

7.8

22.8

28.1

12.1

9.8

1.6

1.4

0.1

0.5

0.4

TVS Srichakra

Neutral

3,361

2,573

2,729

2,893

12.7

12.5

248.5

265.0

13.5

12.7

3.8

3.1

0.3

0.9

Visaka Industries

Neutral

539

856

1,104

1,214

12.1

12.6

31.0

37.9

17.4

14.2

2.1

1.9

0.1

1.0

0.9

VIP Industries

Accumulate

206

218

2,917

1,450

1,693

10.4

10.5

6.5

7.8

31.5

26.4

6.7

5.8

21.1

22.1

2.0

1.7

Navin Fluorine

Accumulate

665

730

3,275

945

1,154

22.4

22.6

28.7

34.8

23.2

19.1

3.8

3.3

3.0

2.3

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 23, 2017

www.angelbroking.com

Market Outlook

August 24, 2017

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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