Market Outlook
December 27, 2017
Market Cues
Domestic Indices
Chg (%)
(Pts)
(Close)
Indian markets are likely to open flat tracking global indices and SGX Nifty.
BSE Sensex
0.2
70
34,011
The U.S. Indices closed slightly lower on Tuesday. Tech giant Apple slumped by
Nifty
0.4
39
10,532
2.5% which weighed tech heavy NASDAQ and this was more than gain in retail
Mid Cap
0.8
133
17,707
sector stocks. Volumes were low, given that many traders are likely to remain on
Small Cap
0.6
121
19,112
vacation until after the New Year’s holiday. The Dow edged down 0.01% to close at
Bankex
0.1
31
29,012
24,746, the NASDAQ fell 0.3% to finish at 6,936 and the S&P 500 dipped 0.1% to
end at 2,681.
Global Indices
Chg (%)
(Pts)
(Close)
The major European markets remained closed on the day in celebration of Boxing
Dow Jones
(0.0)
(8)
24,746
Day.
Nasdaq
(0.3)
(24)
6,936
FTSE
(0.1)
(11)
7,593
On Domestic Front, Indices have begun trading upward and the Nifty 50 post fresh
record high. However market turned subdued and remained in negative territory
Nikkei
0.1
17
22,909
most of the session. In last few hours indices turned positive and closed with approx
Hang Seng
0.2
52
29,630
0.35% higher. There were no big triggers as major European markets remained
Shanghai Com
(0.0)
(1)
3,306
closed on the day in celebration of Boxing Day. The Sensex jumped 0.21% to close
at 34,011, The Nifty 50 ended with a gain of 0.37% to finish at 10,532.
Advances / Declines
BSE
NSE
News Analysis
Advances
1,702
1,045
Canara Bank to raise up to `3,500cr through QIP
Declines
1,107
750
Unchanged
187
65
Detailed analysis on Pg2
Investor’s Ready Reckoner
Volumes (` Cr)
Key Domestic & Global Indicators
BSE
4,332
Stock Watch: Latest investment recommendations on 150+ stocks
NSE
29,809
Refer Pg5 onwards
Net Inflows (` Cr)
Net
Mtd
Ytd
Top Picks
CMP
Target
Upside
FII
(1,136)
(7,833)
49,799
Company
Sector
Rating
(`)
(`)
(%)
*MFs
1,012
6,114 1,16,352
Blue Star
Capital Goods Accumulate
805
867
7.7
Dewan Housing Finance
Financials
Buy
595
712
19.7
Top Gainers
Price (`)
Chg (%)
Asian Granito
Other
Accumulate
544
582
7.0
Navkar Corporation
Other
Buy
190
265
39.8
Rcom
21
30.8
KEI Industries
Capital Goods
Buy
360
436
21.0
Tifhl
675
8.9
More Top Picks on Pg4
Jetairways
823
8.7
Vakrangee
428
7.6
Key Upcoming Events
Previous
Consensus
Jpassociat
20
7.3
Date
Region
Event Description
Reading
Expectations
Dec27
US
Consumer Confidence
129.50
128.00
Dec28
US
Initial Jobless claims
245.00
240.00
Top Losers
Price (`)
Chg (%)
Dec31
Germany PMI Manufacturing
63.30
63.30
Religare
72
(4.8)
Jan02
China
PMI Manufacturing
51.80
51.60
Den
106
(3.5)
Jan02
UK
PMI Manufacturing
58.20
57.90
Adanitrans
228
(3.4)
More Events on Pg7
Syndibank
82
(3.1)
Kec
368
(2.7)
As on December 26 2017
Market Outlook
December 27, 2017
News Analysis
Canara Bank to raise up to `3,500cr through QIP
CET1/CAR ratio stood at 8.68/12.45% as on Q2FY18, according to nors it should
be at 6.75%/10.25%. Total loan book growth grew 3% q-o-q & 10% y-o-y, which
will consume capital and recovery in economy, would increase credit demand.
Hence this capital raising helps Canara Bank to improve advance growth.
"The board of bank at its meeting held on December 26, 2017 has decided to
raise additional equity share capital amounting up to `90cr through qualified
institutional placement (QIP) route, by issuing up to 9cr equity shares of a face
value of
`10 each with a premium to be decided as per the applicable
guidelines/regulations for an aggregate amount not exceeding `3,500cr inclusive
of such premium," it said in a regulatory filing.
Economic and Political News
Budget worries: GST collections fall to lowest in Nov at `80,808 cr
Regulators need to look at the flaws beneath crypto-currencies
Take urgent remedial steps to contain NPAs: Parliamentary panel to govt
Corporate News
Jindal Steel completed 250-tonne basic oxygen furnace at its Odisha plant.
IDBI Bank to terminate rating engagement with Moody’s for MTN program.
NBCC to sell 25.1 lakh shares through an offer for sale to employees.
Essar Oilfields commenced drilling contract with Mercator Petroleum.
Market Outlook
December 27, 2017
Top Picks HHHHH
Market Cap
CMP
Target
Upside
Company
Rationale
(` Cr)
(`)
(`)
(%)
Strong growth in domestic business due to its leade`hip
in acute therapeutic segment. Alkem expects to launch
Alkem Laboratories
26,123
2,185
2,341
7.1
more products in USA, which bodes for its international
business.
We expect the company would report strong profitability
Asian Granito
1,636
544
582
7.0
owing to better product mix, higher B2C sales and
amalgamation synergy.
Favorable outlook for the AC industry to augur well for
Cooling products business which is out pacing the
Blue Star
7,715
805
867
7.7
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
18,661
595
712
19.7
presence in tier-II & III cities where the growth
opportunity is immense.
Loan growth is likely to pick up after a sluggish FY17.
Lower credit cost will help in strong bottom-line growth.
Karur Vysya Bank
8,753
121
180
48.4
Increasing share of CASA will help in NIM
improvement.
High order book execution in EPC segment, rising B2C
KEI Industries
2,824
360
436
21.0
sales and higher exports to boost the revenues and
profitability
Expected to benefit from the lower capex requirement
Music Broadcast
2,147
376
434
15.3
and 15 year long radio broadcast licensing.
Massive capacity expansion along with rail advantage
Navkar Corporation
2,853
190
265
39.8
at ICD as well CFS augur well for the company
Strong brands and distribution network would boost
Siyaram Silk Mills
3,603
769
813
5.8
growth 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
TV Today Network
2,648
444
500
12.6
radio business, and anticipated growth in ad spends by
corporate to benefit the stock.
After GST, the company is expected to see higher
volumes along with improving product mix. The Gujarat
Maruti Suzuki
2,92,137
9,671
10,619
9.8
plant will also enable higher operating leverage which
will be margin accretive.
We expect loan book to grow at 24.3% over next two
GIC Housing
2,515
467
655
40.3
year; change in borrowing mix will help in NIM
improvement
We expect CPIL to report net Revenue/PAT CAGR of
~17%/16% over FY2017-20E mainly due to healthy
7,506
338
400
18.4
growth in plywood & lamination business, forayed into
Century Plyboards India
MDF & Particle boards on back of strong brand &
distribution network.
We expect sales/PAT to grow at 13.5%/20% over next
LT Foods
2,246
84
96
14.0
two years on the back of strong distribution network &
addition of new products in portfolio.
We expect sales/PAT to grow at 13%/16% over next two
years on the back of strong healthy demand in writing
Ruchira Papers
443
198
244
23.5
& printing paper and Kraft paper. Further, China had
banned making paper from waste pulp which would
benefit Indian paper companies.
Source: Company, Angel Research
Market Outlook
December 27, 2017
Key Upcoming Events
Global economic events release calendar
Bloomberg Data
Date
Time Country
Event Description
Unit
Period
Last Reported
Estimated
Dec 27, 2017
7:00 PMUS
Initial Jobless claims
Thousands
Dec 23
245.00
Dec 28, 2017
8:30 PMUS
Consumer Confidence
S.A./ 1985=100
Dec
129.50
128.00
Dec 31, 2017
6:30 AMChina
PMI Manufacturing
Value
Dec
51.80
51.70
Jan 02, 2018
2:25 PMGermany
Unemployment change (000's)
Thousands
Dec
(18.00)
(12.00)
2:25 PMGermany
PMI Manufacturing
Value
Dec F
63.30
63.30
Jan 03, 2018
3:00 PMUK
PMI Manufacturing
Value
Dec
58.20
57.80
Jan 04, 2018
2:25 PMGermany
PMI Services
Value
Dec F
55.80
55.80
Jan 05, 2018
7:00 PMUS
Change in Nonfarm payrolls
Thousands
Dec
228.00
185.00
7:00 PMUS
Unnemployment rate
%
Dec
4.10
4.00
Jan 08, 2018
3:30 PMEuro Zone
Euro-Zone Consumer Confidence
Value
Dec F
0.50
Jan 10, 2018
3:00 PMUK
Industrial Production (YoY)
% Change
Nov
3.60
India
Imports YoY%
% Change
Dec
19.60
India
Exports YoY%
% Change
Dec
30.60
Jan 11, 2018
US
Producer Price Index (mom)
% Change
Dec
1.40
Jan 12, 2018
China
Exports YoY%
% Change
Dec
12.30
12:00 PMIndia
Monthly Wholesale Prices YoY%
% Change
Dec
3.93
Jan 15, 2018
7:00 PMUS
Consumer price index (mom)
% Change
Dec
0.40
Jan 16, 2018
3:00 PMUK
CPI (YoY)
% Change
Dec
3.10
Jan 17, 2018
3:30 PMEuro Zone
Euro-Zone CPI (YoY)
%
Dec F
1.50
7:45 PMUS
Industrial Production
%
Dec
0.20
Jan 18, 2018
7:00 PMUS
Housing Starts
Thousands
Dec
1,297.00
7:00 PMUS
Building permits
Thousands
Dec
1,298.00
Jan 24, 2018
8:30 PMUS
Existing home sales
Million
Dec
5.81
3:00 PMUK
Jobless claims change
% Change
Dec
5.90
Source: Bloomberg, Angel Research
Market Outlook
December 27, 2017
Macro watch
Exhibit 1: Quarterly GDP trends
Exhibit 2: IIP trends
(%)
(%)
10.0
5.0
4.5
9.1
4.4
4.1
9.0
8.0
7.9
4.0
3.5
7.6
7.5
3.2
8.0
7.3
7.2
2.9
7.0
3.0
2.4
7.0
6.3
2.2
6.1
6.1
5.7
2.0
6.0
1.2
1.0
5.0
1.0
4.0
-
3.0
(1.0)
(0.3)
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
4.9
52.0
5.0
3.9
50.0
4.0
3.7
3.6
3.4
3.3
3.3
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
5.00
20.0
4.50
10.0
4.00
0.0
3.50
(10.0)
3.00
Source: Bloomberg, Angel Research
Source: RBI, Angel Research
Market Outlook
December 27, 2017
Global watch
Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries
(%)
8.0
6.9
7.0
5.8
6.0
5.3
5.0
5.0
1.1
3.7
4.0
2.5
3.0
2.2
1.8
2.0
1.5
1.4
0.8
1.0
0.3
-
Source: Bloomberg, Angel Research
Exhibit 2: 2017 GDP Growth projection by IMF (%, yoy) across select developing and developed countries
(%)
6.7
6.8
7.0
6.0
5.4
5.2
5.0
3.7
4.0
3.0
1.8
2.2
2.0
1.7
1.6
2.0
0.7
1.5
0.7
1.0
-
Source: IMF, Angel Research
Exhibit 3: One year forward P-E ratio across select developing and developed countries
(x)
25.0
20.0
15.0
10.0
5.0
-
Source: IMF, Angel Research
Market Outlook
December 27, 2017
Exhibit 4: Relative performance of indices across globe
Returns (%)
Country
Name of index
Closing price
1M
3M
1YR
Brazil
Bovespa
75,708
1.6
(0.4)
31.5
Russia
Micex
2,097
(3.0)
1.3
(3.9)
India
Nifty
10,532
1.8
5.7
32.0
China
Shanghai Composite
3,306
(0.5)
(1.6)
6.0
South Africa
Top 40
52,064
(4.5)
5.0
19.5
Mexico
Mexbol
48,451
0.5
(4.1)
7.0
Indonesia
LQ45
1,054
4.1
7.9
20.1
Malaysia
KLCI
1,760
2.1
(0.6)
7.5
Thailand
SET 50
1,136
4.0
5.9
20.0
USA
Dow Jones
24,746
5.2
11.0
24.1
UK
FTSE
7,593
2.3
4.0
6.8
Japan
Nikkei
22,893
1.5
12.8
17.4
Germany
DAX
13,073
0.4
3.8
13.9
France
CAC
5,365
0.2
1.9
9.9
Source: Bloomberg, Angel Research p68in4
Stock Watch
December 27, 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
Sell
258
209
5,010
1,873
2,099
15.0
15.0
9.5
10.5
27.1
24.5
4.1
3.7
15.8
16.0
2.6
2.3
United Phosphorus
Accumulate
735
820
37,367
18,922
21,949
18.0
18.5
36.2
45.6
20.3
16.1
4.3
3.5
22.7
23.8
2.1
1.8
Auto & Auto Ancillary
Ashok Leyland
Accumulate
119
127
34,950
23,339
27,240
10.1
10.8
4.7
6.2
25.7
19.2
5.1
4.5
20.0
23.6
1.5
1.2
Bajaj Auto
Neutral
3,363
-
97,311
23,936
27,955
19.5
20.1
142.7
167.3
23.6
20.1
5.1
4.6
21.8
22.8
3.7
3.1
Bharat Forge
Buy
728
875
33,902
7,637
8,755
21.7
23.2
36.1
47.3
20.2
15.4
3.6
3.1
18.5
20.8
4.3
3.7
Eicher Motors
Neutral
30,251
-
82,394
19,043
22,837
19.5
19.9
835.4
1,019.0
36.2
29.7
13.5
10.4
40.9
37.8
4.2
3.4
Gabriel India
Neutral
192
-
2,752
1,782
2,033
9.7
10.2
7.1
8.9
27.0
21.7
5.5
4.6
21.0
22.2
1.5
1.3
Hero Motocorp
Accumulate
3,805
4,129
75,982
32,239
36,878
16.0
15.6
184.4
206.5
20.6
18.4
6.5
5.7
31.3
30.7
2.1
1.8
Jamna Auto Industries Neutral
83
-
3,303
1,441
1,662
14.4
14.8
13.9
17.6
6.0
4.7
1.6
1.3
30.0
31.0
2.3
1.9
Mahindra and Mahindra Neutral
741
-
92,158
46,971
53,816
13.6
14.0
67.7
79.8
11.0
9.3
1.6
1.4
15.0
15.9
1.8
1.6
Maruti
Accumulate
9,671
10,619
292,137
79,470
95,208
15.9
17.2
281.7
363.8
34.3
26.6
7.5
6.1
21.7
22.8
3.3
2.7
Minda Industries
Neutral
1,288
-
11,129
4,328
5,084
11.0
11.9
27.3
36.4
47.3
35.4
10.0
7.8
23.1
25.6
2.7
2.3
Motherson Sumi
Neutral
375
-
78,965
55,937
64,445
10.8
11.4
16.9
21.1
22.2
17.8
5.0
5.1
25.2
25.4
1.5
1.2
Tata Motors
Neutral
424
-
122,308
303,167
343,649
11.8
13.8
33.1
54.7
12.8
7.7
2.1
1.7
16.9
23.0
0.5
0.4
TVS Motor
Neutral
770
-
36,579
13,992
16,216
9.0
9.4
17.1
20.3
45.2
37.9
12.0
9.3
29.7
27.7
2.6
2.2
Amara Raja Batteries
Neutral
837
-
14,296
6,140
7,122
14.3
15.6
29.3
39.0
28.6
21.5
4.9
4.1
17.1
19.0
2.3
2.0
Exide Industries
Neutral
221
-
18,760
8,689
9,854
15.1
15.2
9.7
11.0
22.9
20.1
4.1
3.6
15.7
16.1
1.9
1.6
Apollo Tyres
Neutral
267
-
15,279
15,739
17,326
13.3
14.6
20.4
26.7
13.1
10.0
1.6
1.4
20.4
26.7
1.2
1.1
Ceat
Neutral
2,003
-
8,104
6,661
7,717
11.1
14.2
116.2
178.2
17.3
11.2
3.0
2.5
15.2
21.3
1.3
1.1
JK Tyres
Neutral
147
-
3,334
8,318
9,239
16.2
16.4
21.0
27.5
7.0
5.4
1.4
1.1
19.1
20.4
0.8
0.7
Swaraj Engines
Neutral
2,034
-
2,527
788
889
16.4
16.5
71.6
81.0
28.4
25.1
8.2
7.6
29.6
31.0
2.9
2.5
Subros
Neutral
300
-
1,800
1,855
2,135
11.6
11.8
10.3
14.7
29.3
20.5
4.5
3.8
15.8
19.1
1.2
1.0
Capital Goods
BEML
Neutral
1,607
-
6,690
4,286
5,194
7.1
8.2
42.9
58.1
37.5
27.7
3.1
2.8
7.6
8.7
1.6
1.3
Bharat Electronics
Neutral
187
-
45,835
10,258
12,470
19.6
19.5
7.3
8.6
25.6
21.7
0.5
0.4
20.4
21.9
4.0
3.2
Voltas
Neutral
654
-
21,645
6,778
8,004
9.6
11.0
17.1
22.4
38.3
29.2
9.1
8.0
17.7
19.8
2.9
2.4
BHEL
Neutral
93
-
34,162
33,200
39,167
6.8
9.5
6.2
11.2
15.0
8.3
0.7
0.7
4.6
8.0
0.6
0.5
Blue Star
Accumulate
805
867
7,716
5,220
6,207
6.3
6.6
16.8
22.3
47.9
36.1
9.5
8.4
19.9
23.3
1.4
1.2
CG Power and Industrial
Neutral
91
-
5,691
6,555
7,292
7.5
7.5
-
0.8
9,080.0
113.5
1.4
1.4
0.1
1.2
1.0
0.9
Solutions
Greaves Cotton
Neutral
134
-
3,269
1,778
1,993
14.7
15.1
8.1
9.1
16.5
14.7
3.7
3.5
21.8
23.6
1.6
1.4
Stock Watch
December 27, 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
368
-
9,466
9,779
11,113
9.4
9.8
14.2
18.2
25.9
20.2
5.0
4.1
21.1
22.1
1.2
1.1
KEI Industries
Buy
360
436
2,824
3,001
3,391
10.0
10.0
13.0
16.1
27.7
22.4
5.0
4.2
18.2
18.7
1.1
1.0
Thermax
Neutral
1,228
-
14,637
4,125
4,747
10.3
10.8
26.7
31.5
46.0
39.0
5.2
4.7
11.2
12.0
3.3
2.9
VATech Wabag
Accumulate
618
681
3,379
3,867
4,126
9.6
10.0
34.9
39.8
17.7
15.5
2.9
2.5
17.7
17.5
0.9
0.8
Cement
ACC
Neutral
1,739
-
32,650
12,255
13,350
13.5
14.3
58.0
66.2
30.0
26.3
3.6
3.3
11.5
12.2
2.6
2.4
Ambuja Cements
Neutral
272
-
54,039
10,250
11,450
17.5
19.0
7.2
8.3
37.8
32.8
2.7
2.6
7.0
7.8
5.1
4.5
India Cements
Neutral
185
-
5,696
6,135
6,750
14.8
15.2
8.5
11.5
21.8
16.1
1.1
1.0
4.8
6.2
1.3
1.1
JK Cement
Neutral
1,082
-
7,561
4,150
4,775
19.2
20.0
49.0
63.5
22.1
17.0
3.5
3.0
17.0
18.5
2.3
1.9
J K Lakshmi Cement
Neutral
439
-
5,166
3,422
3,757
15.5
17.0
13.5
23.2
32.5
18.9
3.4
2.9
10.8
15.5
1.9
1.7
Orient Cement
Neutral
169
-
3,457
2,215
3,233
16.8
17.0
5.9
6.9
28.6
24.5
2.2
2.0
10.8
10.1
2.6
1.7
Prism Cement
Accumulate
116
131
5,821
5,155
5,616
7.0
7.0
2.0
3.0
57.8
38.6
5.3
4.6
10.0
13.8
1.4
1.3
UltraTech Cement
Neutral
4,322
-
118,672
28,250
35,150
20.2
23.5
77.5
122.2
55.8
35.4
4.7
4.3
9.6
14.8
4.7
3.7
Construction
KNR Constructions
Neutral
341
-
4,801
1,846
2,203
14.5
14.5
12.1
13.7
28.2
25.0
1.6
1.3
17.5
16.7
2.7
2.2
Larsen & Toubro
Neutral
1,270
-
177,875
95,787
109,476
10.2
11.6
44.5
50.8
28.6
25.0
3.6
3.3
12.9
13.1
2.4
2.1
Gujarat Pipavav Port
Neutral
136
-
6,587
739
842
61.6
62.7
5.1
6.2
26.7
22.2
3.3
3.3
12.7
14.9
8.4
7.2
PNC Infratech
Neutral
217
-
5,576
2,040
2,935
13.0
13.0
6.4
9.0
34.0
24.2
0.9
0.8
9.7
12.2
2.7
2.0
Simplex Infra
Neutral
579
-
2,864
6,012
6,619
11.6
11.7
21.1
31.0
27.5
18.7
1.9
1.8
6.5
8.6
1.0
0.9
Sadbhav Engineering
Neutral
427
-
7,325
3,823
4,426
10.7
10.8
10.3
11.8
41.5
36.2
5.0
4.4
10.1
10.5
2.2
1.9
NBCC
Neutral
252
-
22,649
9,099
12,706
6.4
6.4
7.3
9.6
34.6
26.3
1.5
1.2
27.5
30.5
2.3
1.7
MEP Infra
Neutral
98
-
1,594
2,403
2,910
18.3
16.8
2.4
6.1
41.7
16.1
15.8
10.7
35.2
55.8
1.8
1.5
SIPL
Neutral
151
-
5,312
2,060
2,390
46.8
47.7
(5.8)
(3.1)
5.7
6.4
(14.2)
(2.3)
7.3
6.8
Engineers India
Neutral
203
-
13,653
1,795
2,611
21.1
22.4
5.9
8.1
34.3
25.0
2.5
2.4
12.9
16.1
6.0
4.0
Financials
Axis Bank
Neutral
554
-
132,964
32,558
35,843
3.5
3.2
27.8
41.0
19.9
13.5
2.2
1.9
11.4
14.9
-
-
Bank of Baroda
Neutral
167
-
38,387
22,533
26,079
2.4
2.4
12.0
20.9
13.9
8.0
0.9
0.9
6.6
11.0
-
-
Canara Bank
Neutral
375
-
22,374
17,925
20,235
2.0
2.1
18.5
36.5
20.3
10.3
0.8
0.7
3.4
6.2
-
-
Can Fin Homes
Neutral
501
-
6,665
586
741
3.5
3.5
107.8
141.0
4.6
3.6
1.0
0.8
24.1
25.6
-
-
Cholamandalam Inv. &
Neutral
1,289
-
20,146
2,826
3,307
6.3
6.3
53.7
64.6
24.0
20.0
4.1
3.5
18.3
18.9
-
-
Fin. Co.
Dewan Housing Finance Buy
595
712
18,661
2,676
3,383
2.4
2.7
37.4
49.7
15.9
12.0
2.1
1.8
13.8
16.2
-
-
Equitas Holdings
Buy
142
235
4,840
1,125
1,380
9.6
9.8
1.5
6.0
95.0
23.7
2.2
2.0
2.4
8.2
-
-
Stock Watch
December 27, 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
Federal Bank
Accumulate
110
125
21,530
4,896
5,930
2.8
3.1
5.4
7.6
20.4
14.5
1.7
1.6
8.5
11.0
-
-
GIC Housing
Buy
467
655
2,515
376
477
3.6
3.7
33.0
40.0
14.2
11.7
2.5
2.1
20.0
23.0
-
-
HDFC Bank
Neutral
1,866
-
482,855
55,236
63,253
4.5
4.4
68.9
82.4
27.1
22.6
4.7
3.9
18.7
18.5
-
-
ICICI Bank
Neutral
318
-
203,891
42,361
51,378
3.6
3.9
18.4
25.7
17.3
12.3
1.9
1.8
11.3
15.0
-
-
Karur Vysya Bank
Buy
121
180
8,753
3,289
3,630
3.7
3.9
10.8
14.1
11.2
8.6
1.3
1.2
12.5
14.7
-
-
LIC Housing Finance
Accumulate
570
630
28,753
4,895
6,332
3.4
3.7
50.7
66.8
11.2
8.5
2.2
1.9
21.7
23.8
-
-
Punjab Natl.Bank
Neutral
174
-
42,266
23,708
25,758
2.1
2.1
5.9
16.4
29.7
10.6
0.9
0.8
3.0
8.3
-
-
RBL Bank
Neutral
516
-
21,522
2,309
2,888
2.6
2.5
16.4
19.1
31.6
27.1
4.0
3.5
13.3
13.8
-
-
Repco Home Finance
Buy
679
825
4,250
496
597
4.4
4.2
38.5
48.7
17.7
13.9
3.2
2.6
19.6
20.6
-
-
South Ind.Bank
Neutral
32
-
5,706
3,195
3,567
3.0
3.1
3.0
3.8
10.5
8.3
1.0
0.9
10.5
11.9
-
-
St Bk of India
Neutral
317
-
273,507
105,827
121,056
2.4
2.5
16.1
25.6
19.7
12.4
1.5
1.4
6.6
9.9
-
-
Union Bank
Neutral
148
-
12,665
14,650
16,225
2.3
2.3
23.1
32.5
6.4
4.6
0.5
0.4
7.1
9.2
-
-
Yes Bank
Neutral
315
-
72,513
11,088
13,138
3.0
2.9
84.0
99.3
3.8
3.2
0.6
0.5
16.3
16.8
-
-
FMCG
Akzo Nobel India
Neutral
1,785
-
8,561
3,164
3,607
13.8
13.7
58.6
67.9
30.5
26.3
7.5
6.6
24.5
25.1
2.6
2.2
Asian Paints
Neutral
1,150
-
110,274
17,603
20,615
18.6
18.6
2,128.9
2,543.3
0.5
0.5
11.4
9.6
28.0
28.9
6.1
5.1
Britannia
Neutral
4,734
-
56,838
9,690
11,278
14.8
15.4
84.0
101.0
56.4
46.9
20.5
16.3
40.6
39.0
5.8
5.0
Colgate
Neutral
1,082
-
29,423
4,420
5,074
24.9
25.3
28.6
32.8
37.8
33.0
14.9
12.1
43.8
40.5
6.4
5.5
Dabur India
Neutral
353
-
62,208
8,346
9,344
19.6
19.9
7.8
9.0
45.3
39.2
9.1
8.3
25.2
24.8
7.1
6.2
GlaxoSmith Con*
Neutral
6,460
-
27,167
5,072
5,760
18.2
18.4
176.3
199.2
36.6
32.4
7.8
7.0
21.2
21.7
4.7
4.1
Godrej Consumer
Neutral
978
-
66,648
10,171
11,682
20.8
21.5
21.7
27.1
45.1
36.1
10.1
8.7
22.3
23.4
6.7
5.8
HUL
Neutral
1,348
-
291,761
37,077
41,508
20.3
21.8
5,189.9
6,318.5
0.3
0.2
41.1
35.1
74.8
82.0
7.7
6.9
ITC
Neutral
264
-
321,769
44,588
49,853
37.0
37.3
9.6
11.0
27.5
24.0
6.8
6.4
25.1
27.3
6.7
6.0
Marico
Neutral
318
-
41,059
6,788
7,766
18.5
19.2
7.1
8.5
44.8
37.4
15.7
13.4
36.9
38.0
5.9
5.1
Nestle*
Neutral
7,828
-
75,470
10,083
11,182
20.0
20.9
119.7
141.3
65.4
55.4
230.5
210.6
36.7
39.8
7.2
6.4
Tata Global
Neutral
306
-
19,309
7,121
7,641
11.9
12.3
6.9
8.0
44.3
38.2
3.0
2.8
6.8
7.2
2.5
2.3
Procter & Gamble
Neutral
9,428
-
30,604
3,034
3,579
27.1
27.7
167.7
198.8
56.2
47.4
15.1
13.0
28.8
29.5
9.5
8.0
Hygiene
IT
HCL Tech^
Accumulate
888
1,014
126,667
50,009
54,608
22.1
22.1
62.8
67.6
14.1
13.1
3.2
2.7
22.4
20.6
2.2
1.9
Infosys
Accumulate
1,034
1,120
237,589
70,333
75,960
26.0
26.0
61.7
65.9
16.8
15.7
3.2
2.9
18.9
18.7
2.8
2.5
TCS
Reduce
2,643
2,442
505,908
123,384
134,488
26.1
26.1
133.2
143.7
19.8
18.4
5.5
5.1
27.6
27.8
3.8
3.4
Stock Watch
December 27, 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
IT
Tech Mahindra
Accumulate
493
526
48,185
30,545
32,988
15.0
15.0
35.2
37.6
14.0
13.1
2.4
2.2
16.8
16.2
1.4
1.2
Wipro
Neutral
303
-
147,582
54,164
56,544
22.3
22.3
18.8
19.5
16.1
15.6
2.6
2.2
15.0
13.6
2.0
1.7
Media
D B Corp
Neutral
345
-
6,343
2,404
2,625
30.5
31.5
23.7
26.9
14.6
12.8
3.4
2.9
23.5
22.8
2.5
2.3
HT Media
Neutral
97
-
2,259
2,589
2,830
15.1
15.4
8.3
10.9
11.7
8.9
0.9
0.9
8.4
10.4
0.4
0.3
Jagran Prakashan
Buy
178
225
5,548
2,541
2,835
28.5
28.7
12.7
14.1
14.0
12.6
2.9
2.5
21.3
21.4
2.0
1.8
Sun TV Network
Neutral
999
-
39,369
3,238
3,789
51.9
55.1
30.9
38.0
32.3
26.3
9.2
8.1
30.0
31.0
11.7
9.9
Hindustan Media
Neutral
251
-
1,840
1,002
1,074
23.3
23.5
29.2
33.8
8.6
7.4
1.3
1.1
15.6
15.4
0.8
0.6
Ventures
TV Today Network
Accumulate
444
500
2,648
667
727
27.7
27.7
18.6
20.1
23.9
22.1
3.7
3.8
15.6
17.3
3.5
3.3
Music Broadcast Limited Buy
376
434
2,147
271
317
91.0
109.0
6.0
10.0
62.7
37.6
3.9
3.6
6.5
9.3
7.5
6.2
Metals & Mining
Coal India
Neutral
264
-
163,658
82,301
91,235
17.0
18.0
17.1
20.5
15.4
12.9
2.9
2.7
45.0
55.0
1.7
1.5
Hind. Zinc
Neutral
306
-
129,485
22,108
24,555
57.0
58.0
22.1
26.3
13.9
11.7
4.5
3.6
32.0
35.0
4.9
4.1
Hindalco
Neutral
268
-
60,185
102,350
105,355
13.5
14.5
21.5
24.5
12.5
10.9
1.7
1.5
15.0
15.2
1.2
1.1
JSW Steel
Neutral
267
-
64,649
64,500
68,245
21.1
21.5
20.1
21.2
13.3
12.6
2.4
2.1
-
-
1.7
1.7
NMDC
Neutral
140
-
44,342
10,209
11,450
47.0
48.0
11.1
12.1
12.6
11.6
1.7
1.7
-
-
3.9
3.5
SAIL
Neutral
90
-
37,336
54,100
63,555
3.0
10.0
(10.0)
1.5
60.3
1.2
1.2
-
-
1.7
1.4
Vedanta
Neutral
322
-
119,675
81,206
87,345
28.0
29.0
26.5
33.5
12.2
9.6
2.8
2.4
-
-
2.2
1.9
Tata Steel
Neutral
721
-
70,064
121,445
126,500
16.2
17.2
65.4
81.3
11.0
8.9
1.8
1.5
-
-
1.1
1.0
Oil & Gas
GAIL
Neutral
509
-
86,163
53,115
52,344
14.2
15.3
30.0
31.1
17.0
16.4
2.1
2.0
-
-
1.3
1.3
ONGC
Neutral
194
-
248,708
83,111
84,934
44.2
44.9
16.4
16.9
11.8
11.5
1.4
1.3
-
-
2.9
2.8
Indian Oil Corp
Neutral
409
-
198,388
396,116
432,560
8.5
8.8
40.1
42.2
10.2
9.7
1.8
1.6
-
-
0.6
0.6
Reliance Industries
Neutral
928
-
603,553
257,711
267,438
17.0
18.2
89.1
89.5
10.4
10.4
1.0
0.9
-
-
2.0
1.9
Pharmaceuticals
Alembic Pharma
Accumulate
531
600
10,006
3,346
3,915
19.6
19.2
21.0
23.9
25.3
22.2
4.5
3.8
19.1
18.4
3.0
2.6
Alkem Laboratories Ltd
Accumulate
2,185
2,341
26,123
6,320
7,341
17.5
19.8
72.7
96.6
30.1
22.6
5.3
4.5
16.7
18.7
4.1
3.4
Aurobindo Pharma
Buy
684
823
40,071
17,086
19,478
22.1
22.0
44.7
51.4
15.3
13.3
3.4
2.7
24.7
22.7
2.5
2.1
Aventis*
Neutral
4,637
-
10,679
2,411
2,698
18.8
18.8
151.6
163.9
30.6
28.3
4.8
3.8
25.4
27.5
4.0
3.4
Cadila Healthcare
Neutral
428
-
43,770
11,365
12,926
20.0
20.0
18.4
20.5
23.2
20.9
5.1
4.2
24.3
22.2
3.9
3.4
Cipla
Sell
611
462
49,178
16,163
18,711
16.6
16.9
20.7
24.3
29.5
25.1
3.5
3.1
12.6
13.1
3.2
2.7
Dr Reddy's
Reduce
2,360
2,040
39,138
13,734
15,548
17.7
20.2
69.9
102.0
33.8
23.1
3.0
2.7
9.2
12.4
3.1
2.7
GSK Pharma*
Sell
2,422
2,000
20,512
2,968
3,324
13.8
15.9
37.8
46.3
64.1
52.3
11.2
12.3
16.7
22.4
6.7
6.2
Stock Watch
December 27, 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
Indoco Remedies
Sell
292
136
2,690
1,114
1,297
9.9
13.9
5.6
11.4
52.1
25.6
4.0
3.5
7.7
14.5
2.7
2.3
Ipca labs
Neutral
596
-
7,518
3,256
3,647
14.1
17.1
16.2
25.4
36.8
23.5
2.8
2.6
8.0
11.5
2.4
2.1
Lupin
Buy
872
1,091
39,415
16,240
18,562
21.3
21.7
42.5
49.6
20.5
17.6
2.6
2.3
13.3
13.7
2.5
2.1
Natco Pharma
Accumulate
975
1,057
17,986
1,886
2,016
32.3
29.5
23.2
22.0
42.1
44.2
8.8
7.8
20.9
17.6
9.4
8.8
Sun Pharma
Accumulate
540
615
129,667
28,312
31,826
20.7
22.4
18.5
22.3
29.2
24.2
3.3
3.0
11.5
14.0
4.2
3.6
Syngene International
Accumulate
548
587
10,952
1,394
1,818
33.0
36.5
15.8
21.0
34.6
26.1
6.4
5.3
18.6
20.3
7.8
6.0
Power
Tata Power
Neutral
93
-
25,236
32,547
33,806
20.5
20.5
4.7
5.4
19.9
17.4
1.9
1.6
10.5
10.5
1.8
1.7
NTPC
Neutral
178
-
146,563
86,070
101,246
28.3
30.7
12.9
16.2
13.8
11.0
1.4
1.3
10.6
12.4
3.1
2.7
Power Grid
Accumulate
202
223
105,835
29,183
32,946
89.7
90.0
18.0
20.8
11.3
9.7
1.9
1.7
17.7
18.2
7.6
7.0
Real Estate
Prestige Estate
Neutral
301
-
11,273
4,607
5,146
21.0
22.2
7.9
9.8
38.1
30.7
2.3
2.2
10.3
12.0
3.6
3.3
MLIFE
Accumulate
467
522
2,399
487
590
12.3
17.8
21.0
31.2
22.3
15.0
1.2
1.1
5.2
7.4
3.6
3.0
Telecom
Bharti Airtel
Neutral
543
-
216,979
97,903
105,233
36.0
36.3
9.3
11.1
58.4
49.1
2.8
2.7
5.0
5.6
3.2
2.9
Idea Cellular
Neutral
102
-
36,705
35,012
37,689
27.1
27.7
(4.4)
(2.7)
1.6
1.7
(6.8)
(4.6)
2.4
2.1
Others
Abbott India
Neutral
5,448
-
11,576
3,244
3,723
14.9
16.1
167.5
209.4
32.5
26.0
7.2
6.0
23.7
24.8
3.2
2.7
Asian Granito
Accumulate
544
582
1,636
1,169
1,286
12.5
12.5
16.0
19.7
34.0
27.6
3.6
3.2
10.7
11.6
1.6
1.5
Bajaj Electricals
Neutral
474
-
4,824
4,646
5,301
6.7
7.6
16.1
22.3
29.5
21.3
4.8
4.1
16.4
19.2
1.0
0.9
Banco Products (India)
Neutral
264
-
1,889
1,530
1,695
13.2
12.7
19.0
20.0
13.9
13.2
2.2
2.0
0.2
0.2
1.1
128.2
Coffee Day Enterprises
Neutral
284
-
5,848
3,494
3,913
17.4
18.0
4.8
5.7
-
49.8
2.5
2.4
-
0.1
2.1
1.9
Ltd
Elecon Engineering
Neutral
106
-
1,194
171
201
15.0
16.2
36.0
43.0
3.0
2.5
0.3
0.2
0.1
0.1
6.4
5.4
Garware Wall Ropes
Neutral
958
-
2,097
928
1,003
15.2
15.2
39.4
43.2
24.3
22.2
4.0
3.4
16.5
15.4
2.1
1.9
Goodyear India*
Neutral
1,030
-
2,376
1,717
1,866
11.8
12.3
47.9
49.8
21.5
20.7
3.3
2.9
15.6
15.7
1.1
155.0
Hitachi
Neutral
2,634
-
7,162
2,355
2,715
10.3
10.8
49.0
60.9
53.8
43.3
12.6
10.0
0.2
0.2
3.1
2.6
HSIL
Neutral
517
-
3,737
2,240
2,670
14.6
15.0
17.0
22.0
30.4
23.5
2.5
2.4
0.1
0.1
1.9
1.5
Interglobe Aviation
Neutral
1,201
-
46,152
22,570
27,955
14.2
15.0
63.6
81.8
18.9
14.7
9.9
8.4
0.5
0.6
1.7
1.3
Jyothy Laboratories
Neutral
388
-
7,059
1,781
2,044
14.1
15.0
9.4
10.5
41.5
37.0
8.8
8.3
0.2
0.2
4.2
3.6
Linc Pen & Plastics
Neutral
345
-
510
420
462
9.3
9.3
15.3
17.1
22.6
20.2
3.8
3.9
16.9
19.5
1.3
1.2
M M Forgings
Neutral
1,162
-
1,403
542
642
20.1
21.0
41.6
56.8
27.9
20.5
3.9
3.3
0.1
0.2
3.0
2.6
Mirza International
Neutral
159
-
1,908
1,148
1,285
18.0
18.0
8.0
9.4
19.7
17.0
3.3
2.8
16.3
16.1
1.8
1.6
Navkar Corporation
Buy
190
265
2,853
561
617
41.5
41.5
11.5
12.7
16.5
14.9
1.7
1.6
10.5
10.4
5.8
5.0
Stock Watch
December 27, 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
Others
Nilkamal
Neutral
1,840
-
2,746
2,317
2,525
11.4
11.1
96.0
105.0
19.2
17.5
3.3
2.8
0.2
0.2
1.2
1.0
Parag Milk Foods
Neutral
296
-
2,487
1,987
2,379
7.6
9.0
12.4
18.3
23.9
16.2
3.4
2.9
8.2
13.2
1.4
1.2
Radico Khaitan
Neutral
290
-
3,859
1,811
1,992
13.2
13.2
8.1
8.8
35.8
32.9
3.6
3.9
10.1
12.0
2.5
2.2
Relaxo Footwears
Neutral
683
-
8,215
1,981
2,310
13.7
14.5
12.0
15.5
56.9
44.0
11.1
9.0
0.2
0.2
4.2
3.6
Siyaram Silk Mills
Accumulate
769
813
3,603
1,769
1,981
12.7
12.7
22.6
26.2
34.0
29.3
5.3
4.5
15.5
15.5
2.2
2.0
Styrolution ABS India* Neutral
1,073
-
1,886
1,800
1,980
8.0
8.1
42.0
46.2
25.5
23.2
2.9
2.6
0.1
0.1
1.2
1.1
Surya Roshni
Neutral
387
-
1,696
4,870
5,320
7.7
7.8
22.8
28.1
17.0
13.8
2.3
2.0
0.1
0.1
0.6
0.5
TVS Srichakra
Neutral
3,682
-
2,819
2,729
2,893
12.7
12.5
248.5
265.0
14.8
13.9
4.2
3.4
0.3
0.3
1.0
1.0
Visaka Industries
Neutral
642
-
1,019
1,104
1,214
12.1
12.6
31.0
37.9
20.7
17.0
2.5
2.3
0.1
0.1
1.2
1.0
VIP Industries
Accumulate
350
400
4,945
1,450
1,693
10.4
10.5
6.5
7.8
53.5
44.8
11.3
9.9
21.1
22.1
3.4
2.9
Navin Fluorine
Neutral
869
-
4,290
945
1,154
17.5
17.9
28.7
34.8
30.3
25.0
5.0
4.3
-
-
4.1
3.2
Century Plyboards India Buy
338
400
7,506
2,007
2,510
22.4
22.6
8.4
11.1
40.2
30.4
8.5
6.9
21.3
22.9
4.1
3.3
LT Foods
Accumulate
84
96
2,246
3,287
3,747
11.1
11.5
4.4
5.2
19.1
16.2
2.8
2.3
17.5
17.6
1.2
1.0
Ruchira Papers
Buy
198
244
443
470
532
15.6
15.6
16.5
19.0
12.0
10.4
2.4
2.0
20.0
19.2
1.1
1.0
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on December 26, 2017
Market Outlook
December 27, 2017
Research Team Tel: 022 - 39357800
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