Market Outlook

September 28, 2017

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

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

BSE Sensex

(1.4)

(440)

31,160

U.S. stocks rose on Wednesday, with the Dow industrials ending a four-day losing

Nifty

(1.4)

(136)

9,736

streak and the small-cap Russell 2000 notching a record close as President Donald

Mid Cap

(2.0)

(308)

15,192

Trump and congressional Republicans touted a sweeping tax overhaul. The Dow

Jones rose 0.3%, to end at 22,341, erasing an earlier loss. The S&P 500 gained

Small Cap

(2.1)

(339)

15,797

0.4%, to close at 2,507, while NASDAQ moved up 1.2%, to 6,453.

Bankex

(1.7)

(454)

26,779

U.K. stocks finished higher for the first time this week on Wednesday, getting a boost

from a weaker pound and a rally for miners. The FTSE 100 UKX, climbed 0.4% to

Global Indices

Chg (%)

(Pts)

(Close)

end at 7,314, breaking a two-day losing run.

Dow Jones

0.3

156

22,341

Nasdaq

1.1

6,453

On Domestic front share continues its downward trend amid concern over sagging

FTSE

0.4

7,314

growth. Senior BJP leader and former finance minister Yashwant Sinha slammed the

Nikkei

(00.2

20,313

government's handling of the economy and said growth will not improve by 2019

when the next national election is due. This Comment kept market under pressure

Hang Seng

(0.4)

(123)

27,519

for throughout the day. The rupee hit a fresh six-month low against the dollar

Shanghai Com

(0.2)

(6)

3,339

triggered by continued selling by foreign investors on fiscal deficit worries. The 30-

share BSE Sensex Plunged 1.4% to close at 31,160, The Nifty fell 1.4% to end at

Advances / Declines

BSE

NSE

9,736.

Advances

1,543

1,264

News Analysis

Declines

2,025

1,434

 Airtel to invest `20,000cr this year in digital infrastructure

Unchanged

128

Detailed analysis is on Pg2

Volumes (` Cr)

Investor’s Ready Reckoner

BSE#

4,252

Key Domestic & Global Indicators

NSE

29,626

Stock Watch: Latest investment recommendations on 150+ stocks

Refer Pg7 onwards

#Net Inflows (` Cr)

Net

Mtd

Ytd

FII

(1,656)

(2(6,640)

440,648

Top Picks

CMP

Target

Upside

Company

Sector

Rating

MFs

1,300

410,393

179,280

(`)

(%)

Blue Star

Capital Goods Accumulate

748

850

13.7

Dewan Housing FinanceFinancials

Buy

526

610

16.0

Top Gainers

Price (`)

Chg (%)

Asian Granito

Others

Buy

473

570

20.4

Denacem

192

4.0

Navkar Corporation

Others

Buy

183

265

45.0

Srtransfin

1,046

3.8

KEI Industries

Capital Goods

Buy

312

371

19.0

More Top Picks on Pg5

Prestige

273

2.5

Niittech

526

2.3

Key Upcoming Events

Polaris

226

1.8

Consensus

Date

Region

Event Description

Reading

Expectations

Sep 28, 2017 US

Initial Jobless claims

259.00

270.00

Top Losers

Price (`)

Chg (%)

Sep 28, 2017 Euro Zone Euro-Zone Consumer Confidence

(1.20)

Divislab

850

(11.6)

Sep 28, 2017 Germany Unemployment change (000's)

(5.00)

Siemens

1,219

(8.0)

Sep 29, 2017 US

GDP Qoq (Annualised)

3.00

Marksans

(6.3)

Sep 29, 2017 UK

GDP (YoY)

1.70

More Events on Pg7

Icil

(6.0)

Bfutilitie

391

(5.9)

#as on 27^th Sep, 2017

www.angelbroking.com

Market Outlook

September 28, 2017

News Analysis

Airtel to invest `20,000cr this year in digital infrastructure

Bharti Airtel will invest up to `20,000cr this year in digital infrastructure, the

company’s Chairma Mr Sunil Bharti Mittal has said. Speaking at the India mobile

congress, he advocated a collaborative approach to overcome challenges and

unleash the growth potential of the sector. He said the telecom industry is infusing

large amounts of money in strengthening its infrastructure and the total industry

will be injecting Rs 50-60,000 cr to build digital infrastructure. He also said Airtel

is rolling out massive multiple input multiple output (Mimo) technology and India

will be in step and head to head with what is happening globally. Post

commencement of Reliance Jio the industry has seen competition intensifying and

the financials of the telecom companies have been impacted to large extent. In

order to keep up with the competition Airtel is also venturing into expanding its

digital base.

Economic and Political News

 GST impact: Car exports growth at 6-year low

 Rupee slump on wave of grim economic news

 FinMin, RBI meet likely to finalise borrowing calendar for second half

Corporate News

 IDBI Bank sells 9% stake in SIDBI

 GE Power India won an order worth `328cr from Doosan Power India

 Power Grid begins commercial operations of Pole II of the Champa-

Kurukshetra HVDC Terminal

www.angelbroking.com

Market Outlook

September 28, 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

22,071

1,846

2,079

12.6

more products in USA, which bodes for its international

business.

We expect the company would report strong profitability

Asian Granito

1,424

473

570

20.4

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

7,160

748

850

13.7

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

16,490

526

610

16.0

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

8,669

143

180

25.5

Increasing share of CASA will help in NIM

improvement.

High order book execution in EPC segment, rising B2C

KEI Industries

2,425

312

371

19.0

sales and higher exports to boost the revenues and

profitability

Expected to benefit from the lower capex requirement

Music Broadcast

2,162

379

434

14.6

and 15 year long radio broadcast licensing.

Massive capacity expansion along with rail advantage

Navkar Corporation

2,605

183

265

45.0

at ICD as well CFS augurs well for the company

Strong brands and distribution network would boost

Siyaram Silk Mills

2,043

2,179

2,500

14.7

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

2,028

340

435

28.0

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

2,33,626

7,734

8,658

11.9

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

2,776

516

655

27.0

year; change in borrowing mix will help in NIM

improvement..

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

September 27, 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

Sep 28, 2017

6:00 PM US

Initial Jobless claims

Thousands

Sep 23

259.00

270.00

2:30 PM Euro Zone

Euro-Zone Consumer Confidence

Value

Sep F

(1.20)

1:25 PM Germany

Unempl oyment change (000's)

Thousands

Sep

(5.00)

Sep 29, 2017

6:00 PM US

GDP Qoq (Annualise d)

% Change

2Q T

3.00

2:00 PM UK

GDP (YoY)

% Change

2Q F

1.70

Sep 30, 2017

2:00 PM UK

PMI Manufacturing

Value

Sep

56.90

Oct 02, 2017

6:30 AM China

PMI Manufacturing

Value

Sep

51.70

51.50

1:25 PM Germany

PMI Manufacturing

Value

Sep F

60.60

Oct 04, 2017

1:25 PM Germany

PMI Services

Value

Sep F

55.60

2:30 PM India

RBI Reverse Re po rate

Oct 4

5.75

2:30 PM India

RBI Repo rate

Oct 4

6.00

2:30 PM India

RBI Cash Reserve ratio

Oct 4

4.00

Oct 06, 2017

6:00 PM US

Change in N onfarm payrolls

Thousands

Sep

156.00

70.00

6:00 PM US

Unnemployment rate

Sep

4.40

Oct 10, 2017

India

Imports YoY%

% Change

Sep

21.00

India

Exports YoY%

% Change

Sep

10.30

2:00 PM UK

Industrial Production (YoY)

% Change

Aug

0.40

Oct 12, 2017

5:30 PM India

Industrial Production YoY

% Change

Aug

1.20

Producer Price Index (mom)

% Change

Sep

0.50

Oct 13, 2017

6:00 PM US

Consumer price index (mom)

% Change

Sep

0.40

0.50

China

Exports YoY%

% Change

Sep

5.60

Oct 16, 2017

12: 00 PM India

Monthly Wholesale Prices YoY%

% Change

Sep

3.24

7:00 AM China

Consumer Price Index (YoY)

% Change

Sep

1.80

Oct 17, 2017

2:30 PM Euro Zone

Euro-Zone CPI (YoY)

Sep F

1.50

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

September 27, 2017

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

10.0

6.0

9.1

5.1

8.8

5.0

9.0

5.0

4.4

8.0

7.9

4.2

7.6

7.5

8.0

7.3

7.2

4.0

3.5

7.0

3.2

2.8

7.0

6.1

3.0

2.4

5.7

6.0

2.0

1.2

5.0

1.0

4.0

3.0

(1.0)

(0.2)

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

(%)

5.0

54.0

4.3

4.2

4.5

3.9

52.0

4.0

3.6

3.7

3.4

3.2

50.0

3.5

3.0

48.0

2.4

2.2

2.5

46.0

2.0

1.5

44.0

1.0

42.0

0.5

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

www.angelbroking.com

Market Outlook

September 27, 2017

Exhibit 4: Relative performance of indices across globe

Returns (%)

C ountry

Name of index

Closing price

1YR

Brazil

Bovespa

73,797

3.8

19.0

25.7

Russia

Micex

2,081

4.7

10.6

4.3

India

Nifty

9,736

(1.8)

2.4

10.2

China

Shanghai Composite

3,345

(0.8)

4.6

10.5

South Africa

Top 40

49,018

(2.3)

8.2

7.9

Mexico

Mexbol

50,169

(2.1)

2.0

5.2

Indonesia

LQ45

976

(1.3)

1.2

8.9

Malaysia

KLCI

1,764

(0.6)

6.8

Thailand

SET 50

1,070

5.9

7.3

12.9

USA

Dow Jones

22,341

2.4

4.8

21.8

FTSE

7,314

(1.2)

(1.0)

5.7

Japan

Nikkei

20,267

4.2

0.6

22.9

Germany

DAX

12,657

4.4

1.9

19.2

France

CAC

5,282

4.0

2.5

17.6

Source: Bloomberg, Angel Research, data as of 27^th Sept-17 p68in4

www.angelbroking.com

Stock Watch

September 28, 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

Neutral

207

4,032

1,873

2,099

15.0

9.5

10.5

21.8

19.8

3.3

3.0

15.8

16.0

2.0

1.9

United Phosphorus

Accumulate

771

820

39,172

18,922

21,949

18.0

18.5

36.2

45.6

21.3

16.9

4.5

3.7

22.7

23.8

2.2

1.9

Auto & Auto Ancillary

Ashok Leyland

Accumulate

112

127

32,821

23,339

27,240

10.1

10.8

4.7

6.2

24.1

18.0

4.8

4.3

20.0

23.6

1.4

1.1

Bajaj Auto

Neutral

3,028

87,615

23,936

27,955

19.5

20.1

142.7

167.3

21.2

18.1

4.6

4.1

21.8

22.8

3.3

2.7

Bharat Forge

Neutral

1,216

28,315

7,637

8,755

21.7

23.2

36.1

47.3

33.7

25.7

6.0

5.2

18.5

20.8

3.6

3.0

Eicher Motors

Neutral

30,470

82,948

19,043

22,837

19.5

19.9

835.4

1,019.0

36.5

29.9

13.6

10.5

40.9

37.8

4.2

3.5

Gabriel India

Neutral

200

2,877

1,782

2,033

9.7

10.2

7.1

8.9

28.2

22.6

5.7

4.8

21.0

22.2

1.6

1.4

Hero Motocorp

Accumulate

3,732

4,129

74,535

32,239

36,878

16.0

15.6

184.4

206.5

20.2

18.1

6.4

5.6

31.3

30.7

2.1

1.8

Jamna Auto Industries Neutral

251

1,999

1,441

1,662

14.4

14.8

13.9

17.6

18.0

14.3

4.9

4.0

30.0

31.0

1.4

1.2

Mahindra and Mahindra Neutral

1,231

76,460

46,971

53,816

13.6

14.0

67.7

79.8

18.2

15.4

2.6

2.3

15.0

15.9

1.5

1.3

Maruti

Accumulate

7,734

8,658

233,626

81,825

101,245

15.0

283.5

356.0

27.3

21.7

6.0

4.9

21.9

22.4

2.5

2.0

Minda Industries

Neutral

822

7,104

4,328

5,084

11.0

11.9

27.3

36.4

30.2

22.6

6.4

5.0

23.1

25.6

1.7

1.5

Motherson Sumi

Neutral

332

69,934

55,937

64,445

10.8

11.4

16.9

21.1

19.7

15.8

4.4

4.5

25.2

25.4

1.3

1.1

Tata Motors

Neutral

404

116,620

303,167

343,649

11.8

13.8

33.1

54.7

12.2

7.4

2.0

1.6

16.9

23.0

0.4

TVS Motor

Neutral

645

30,624

13,992

16,216

9.0

9.4

17.1

20.3

37.8

31.8

10.0

7.8

29.7

27.7

2.1

1.8

Amara Raja Batteries

Buy

711

858

12,150

6,140

7,122

14.3

15.6

29.3

39.0

24.3

18.2

4.1

3.5

17.1

19.0

2.0

1.7

Exide Industries

Neutral

203

17,242

8,689

9,854

15.1

15.2

9.7

11.0

21.0

18.4

3.7

3.3

15.7

16.1

1.7

1.5

Apollo Tyres

Neutral

242

12,318

15,739

17,326

13.3

14.6

20.4

26.7

11.9

9.1

1.4

1.3

20.4

26.7

1.0

0.9

Ceat

Neutral

1,670

6,754

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

3,243

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

1,981

2,461

788

889

16.4

16.5

71.6

81.0

27.7

24.5

8.0

7.4

29.6

31.0

2.8

2.4

Subros

Neutral

225

1,350

1,855

2,135

11.6

11.8

10.3

14.7

22.0

15.4

3.3

2.9

15.8

19.1

0.9

0.8

Capital Goods

BEML

Neutral

1,643

6,841

4,286

5,194

7.1

8.2

42.9

58.1

38.3

28.3

3.1

2.9

7.6

8.7

1.7

1.3

Bharat Electronics

Neutral

177

39,613

10,258

12,470

19.6

19.5

7.3

8.6

24.3

20.6

0.5

0.4

20.4

21.9

3.4

2.7

Voltas

Neutral

511

16,903

6,778

8,004

9.6

11.0

17.1

22.4

29.9

22.8

7.1

6.3

17.7

19.8

2.2

1.8

BHEL

Neutral

125

30,497

33,200

39,167

6.8

9.5

6.2

11.2

20.1

11.1

0.9

4.6

8.0

0.5

0.4

Blue Star

Accumulate

748

850

7,160

5,220

6,207

6.3

6.6

16.8

22.3

44.5

33.6

8.8

7.8

19.9

23.3

1.3

1.1

CG Power and Industrial

Neutral

4,779

6,555

7,292

7.5

0.8

7,625.0

95.3

1.2

0.1

1.2

0.8

0.7

Solutions

Greaves Cotton

Neutral

135

3,308

1,778

1,993

14.7

15.1

8.1

9.1

16.7

14.9

3.8

3.5

21.8

23.6

1.6

1.4

www.angelbroking.com

Stock Watch

September 28, 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

Buy

301

350

7,733

9,779

11,113

9.4

9.8

14.2

18.2

21.2

16.5

4.1

3.3

21.1

22.1

1.0

0.9

KEI Industries

Buy

312

371

2,425

3,001

3,391

10.0

13.0

16.1

24.0

19.3

4.4

3.6

18.2

18.7

1.0

0.9

Thermax

Neutral

881

10,499

4,125

4,747

10.3

10.8

26.7

31.5

33.0

28.0

3.7

3.4

11.2

12.0

2.3

2.0

VATech Wabag

Accumulate

599

681

3,269

3,867

4,126

9.6

10.0

34.9

39.8

17.2

15.0

2.8

2.4

17.7

17.5

0.9

0.8

Cement

ACC

Neutral

1,592

29,904

12,255

13,350

13.5

14.3

58.0

66.2

27.5

24.1

3.3

3.0

11.5

12.2

2.4

2.2

Ambuja Cements

Neutral

262

51,954

10,250

11,450

17.5

19.0

7.2

8.3

36.3

31.5

2.6

2.5

7.0

7.8

4.8

4.3

India Cements

Neutral

166

5,103

6,135

6,750

14.8

15.2

8.5

11.5

19.5

14.4

1.0

0.9

4.8

6.2

1.2

1.0

JK Cement

Neutral

963

6,736

4,150

4,775

19.2

20.0

49.0

63.5

19.7

15.2

3.1

2.7

17.0

18.5

2.1

1.8

J K Lakshmi Cement

Neutral

386

4,539

3,422

3,757

15.5

17.0

13.5

23.2

28.6

16.6

3.0

2.6

10.8

15.5

1.7

1.5

Orient Cement

Neutral

152

3,113

2,215

3,233

16.8

17.0

5.9

6.9

25.8

22.0

2.0

1.8

10.8

10.1

2.4

1.6

UltraTech Cement

Neutral

3,799

104,286

28,250

35,150

20.2

23.5

77.5

122.2

49.0

31.1

4.1

3.7

9.6

14.8

4.2

3.3

Construction

KNR Constructions

Neutral

205

2,878

1,846

2,203

14.5

12.1

13.7

16.9

15.0

0.9

0.8

17.5

16.7

1.6

1.3

Larsen & Toubro

Neutral

1,139

159,529

95,787

109,476

10.2

11.6

44.5

50.8

25.6

22.4

3.2

3.0

12.9

13.1

2.2

2.0

Gujarat Pipavav Port

Neutral

135

6,534

739

842

61.6

62.7

5.1

6.2

26.5

22.0

3.3

3.2

12.7

14.9

8.3

7.2

PNC Infratech

Accumulate

136

143

3,481

2,040

2,935

13.0

6.4

9.0

21.2

15.1

0.6

0.5

9.7

12.2

1.7

1.2

Simplex Infra

Neutral

441

2,182

6,012

6,619

11.6

11.7

21.1

31.0

21.0

14.3

1.5

1.3

6.5

8.6

0.9

0.8

Sadbhav Engineering

Neutral

285

4,891

3,823

4,426

10.7

10.8

10.3

11.8

27.7

24.2

3.3

2.9

10.1

10.5

1.6

1.4

NBCC

Neutral

208

18,675

9,099

12,706

6.4

7.3

9.6

28.5

21.7

1.3

1.0

27.5

30.5

1.9

1.4

MEP Infra

Neutral

1,474

2,403

2,910

18.3

16.8

2.4

6.1

38.5

14.9

14.6

9.9

35.2

55.8

1.8

1.5

SIPL

Neutral

3,175

2,060

2,390

46.8

47.7

(5.8)

(3.1)

3.4

3.9

(14.2)

(2.3)

6.3

5.9

Engineers India

Neutral

151

10,159

1,795

2,611

21.1

22.4

5.9

8.1

25.6

18.6

1.8

12.9

16.1

4.0

2.6

Financials

Axis Bank

Accumulate

506

580

121,198

32,558

35,843

3.5

3.2

27.8

41.0

18.2

12.3

2.0

1.7

11.4

14.9

Bank of Baroda

Neutral

139

31,936

22,533

26,079

2.4

12.0

20.9

11.5

6.6

0.8

0.7

6.6

11.0

Canara Bank

Neutral

315

18,839

17,925

20,235

2.0

2.1

18.5

36.5

17.1

8.6

0.6

3.4

6.2

Can Fin Homes

Neutral

2,600

6,920

586

741

3.5

107.8

141.0

24.1

18.4

5.3

4.3

24.1

25.6

Cholamandalam Inv. &

Buy

1,059

1,230

16,549

2,826

3,307

6.3

53.7

64.6

19.7

16.4

3.4

2.9

18.3

18.9

Fin. Co.

Dewan Housing Finance Buy

526

610

16,490

2,676

3,383

2.4

2.7

37.4

49.7

14.1

10.6

1.8

1.6

13.8

16.2

Equitas Holdings

Buy

155

235

5,251

1,125

1,380

9.6

9.8

1.5

6.0

103.3

25.8

2.4

2.2

2.4

8.2

Federal Bank

Accumulate

111

125

21,535

4,896

5,930

2.8

3.1

5.4

7.6

20.6

14.6

1.8

1.6

8.5

11.0

www.angelbroking.com

Stock Watch

September 28, 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

GIC Housing

Buy

516

655

2,776

376

477

3.6

3.7

33.0

40.0

15.6

12.9

2.8

2.4

20.0

23.0

HDFC Bank

Neutral

1,776

458,365

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

276

315

177,246

42,361

51,378

3.6

3.9

18.4

25.7

15.0

10.7

1.6

11.3

15.0

Karur Vysya Bank

Buy

143

180

8,669

3,289

3,630

3.7

3.9

10.8

14.1

13.2

10.2

1.6

1.4

12.5

14.7

LIC Housing Finance

Neutral

607

30,618

4,895

6,332

3.4

3.7

50.7

66.8

12.0

9.1

2.4

2.0

21.7

23.8

Punjab Natl.Bank

Neutral

133

28,259

23,708

25,758

2.1

5.9

16.4

22.6

8.1

0.7

0.6

3.0

8.3

RBL Bank

Neutral

501

20,694

2,309

2,888

2.6

2.5

16.4

19.1

30.6

26.3

3.8

3.4

13.3

13.8

Repco Home Finance

Buy

601

825

3,758

496

597

4.4

4.2

38.5

48.7

15.6

12.3

2.8

2.3

19.6

20.6

South Ind.Bank

Neutral

5,034

3,195

3,567

3.0

3.1

3.0

3.8

9.2

7.3

0.9

0.8

10.5

11.9

St Bk of India

Neutral

250

216,190

105,827

121,056

2.4

2.5

16.1

25.6

15.6

9.8

1.2

1.1

6.6

9.9

Union Bank

Neutral

127

9,189

14,650

16,225

2.3

23.1

32.5

5.5

3.9

0.4

7.1

9.2

Yes Bank

Neutral

353

80,922

11,088

13,138

3.0

2.9

84.0

99.3

4.2

3.6

0.6

16.3

16.8

FMCG

Akzo Nobel India

Neutral

1,794

8,602

3,164

3,607

13.8

13.7

58.6

67.9

30.6

26.4

7.5

6.6

24.5

25.1

2.6

2.2

Asian Paints

Neutral

1,161

111,363

17,603

20,615

18.6

2,128.9

2,543.3

0.6

0.5

11.5

9.7

28.0

28.9

6.1

5.2

Britannia

Neutral

4,293

51,538

9,690

11,278

14.8

15.4

84.0

101.0

51.1

42.5

18.6

14.8

40.6

39.0

5.3

4.5

Colgate

Neutral

1,062

28,875

4,420

5,074

24.9

25.3

28.6

32.8

37.1

32.4

14.6

11.8

43.8

40.5

6.3

5.4

Dabur India

Neutral

306

53,832

8,346

9,344

19.6

19.9

7.8

9.0

39.2

34.0

7.9

7.1

25.2

24.8

6.1

5.3

GlaxoSmith Con*

Neutral

4,923

20,704

5,072

5,760

18.2

18.4

176.3

199.2

27.9

24.7

5.9

5.4

21.2

21.7

3.4

2.9

Godrej Consumer

Neutral

908

61,858

10,171

11,682

20.8

21.5

21.7

27.1

41.8

33.5

9.4

8.1

22.3

23.4

6.2

5.3

HUL

Neutral

1,207

261,252

37,077

41,508

20.3

21.8

5,189.9

6,318.5

0.2

36.8

31.4

74.8

82.0

6.9

6.2

ITC

Neutral

259

314,983

44,588

49,853

37.0

37.3

9.6

11.0

26.9

23.5

6.6

6.3

25.1

27.3

6.5

5.8

Marico

Neutral

314

40,501

6,788

7,766

18.5

19.2

7.1

8.5

44.2

36.9

15.5

13.2

36.9

38.0

5.8

5.1

Nestle*

Neutral

7,100

68,457

10,083

11,182

20.0

20.9

119.7

141.3

59.3

50.3

209.1

191.1

36.7

39.8

6.5

5.8

Tata Global

Neutral

199

12,534

7,121

7,641

11.9

12.3

6.9

8.0

28.8

24.8

1.9

1.8

6.8

7.2

1.6

1.4

Procter & Gamble

Neutral

8,400

27,267

3,034

3,579

27.1

27.7

167.7

198.8

50.1

42.3

13.4

11.6

28.8

29.5

8.4

7.0

Hygiene

HCL Tech^

Buy

875

1,014

124,840

52,342

57,053

20.9

62.8

67.6

13.9

12.9

3.1

2.7

22.4

20.6

2.1

1.8

Infosys

Buy

899

1,179

206,417

73,963

80,619

26.0

64.4

69.3

14.0

13.0

2.8

2.5

19.7

19.6

2.2

2.0

TCS

Accumulate

2,490

2,651

490,666

127,403

138,870

27.6

144.5

156.0

17.2

16.0

5.1

4.8

29.7

29.8

3.5

3.2

Tech Mahindra

Buy

450

533

43,906

31,015

33,496

15.0

35.6

38.1

12.6

11.8

2.2

2.0

17.0

16.3

1.2

1.0

www.angelbroking.com

Stock Watch

September 28, 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

Wipro

Neutral

289

140,453

58,536

61,858

20.3

18.2

19.1

15.9

15.1

2.5

2.1

14.6

13.4

2.3

2.2

Media

D B Corp

Neutral

372

6,850

2,404

2,625

30.5

31.5

23.7

26.9

15.7

13.8

3.7

3.2

23.5

22.8

2.7

2.4

HT Media

Neutral

2,167

2,589

2,830

15.1

15.4

8.3

10.9

11.2

8.5

0.9

0.8

8.4

10.4

0.4

0.3

Jagran Prakashan

Buy

177

225

5,775

2,541

2,835

28.5

28.7

12.7

14.1

13.9

12.5

2.9

2.5

21.3

21.4

2.1

1.8

Sun TV Network

Neutral

745

29,367

3,238

3,789

51.9

55.1

30.9

38.0

24.1

19.6

6.9

6.0

30.0

31.0

8.6

7.2

Hindustan Media

Neutral

255

1,868

1,002

1,074

23.3

23.5

29.2

33.8

8.7

7.5

1.4

1.2

15.6

15.4

0.9

0.6

Ventures

TV Today Network

Buy

340

435

2,028

667

727

27.7

18.6

20.1

18.3

17.0

2.8

2.9

15.6

17.3

2.6

2.4

Music Broadcast Limited Accumulate

379

434

2,162

271

317

91.0

109.0

6.0

10.0

63.1

37.9

3.9

3.6

6.5

9.3

7.6

6.2

Metals & Mining

Coal India

Neutral

261

161,982

82,301

91,235

17.0

18.0

17.1

20.5

15.3

12.7

2.9

2.7

45.0

55.0

1.6

1.5

Hind. Zinc

Neutral

293

123,760

22,108

24,555

57.0

58.0

22.1

26.3

13.3

11.1

4.3

3.5

32.0

35.0

4.6

3.8

Hindalco

Neutral

233

52,366

102,350

105,355

13.5

14.5

21.5

24.5

10.9

9.5

1.5

1.3

15.0

15.2

1.1

1.0

JSW Steel

Neutral

237

57,240

64,500

68,245

21.1

21.5

20.1

21.2

11.8

11.2

2.2

1.9

1.6

1.5

NMDC

Neutral

118

37,413

10,209

11,450

47.0

48.0

11.1

12.1

10.7

9.8

1.5

1.4

3.2

2.9

SAIL

Neutral

22,406

54,100

63,555

3.0

10.0

(10.0)

1.5

36.2

0.7

1.4

1.2

Vedanta

Neutral

310

115,363

81,206

87,345

28.0

29.0

26.5

33.5

11.7

9.3

2.7

2.3

2.2

1.9

Tata Steel

Neutral

648

62,969

121,445

126,500

16.2

17.2

65.4

81.3

9.9

8.0

1.6

1.3

1.0

0.9

Oil & Gas

GAIL

Neutral

398

67,382

53,115

52,344

14.2

15.3

30.0

31.1

13.3

12.8

1.7

1.5

1.0

ONGC

Neutral

170

218,422

83,111

84,934

44.2

44.9

16.4

16.9

10.4

10.1

1.3

1.2

2.5

Indian Oil Corp

Neutral

396

192,124

396,116

432,560

8.5

8.8

40.1

42.2

9.9

9.4

1.7

1.5

0.6

Reliance Industries

Neutral

799

519,394

257,711

267,438

17.0

18.2

89.1

89.5

9.0

8.9

0.8

1.7

1.6

Pharmaceuticals

Alembic Pharma

Buy

498

600

9,381

3,903

4,584

18.2

19.2

21.8

27.2

22.8

18.3

4.2

3.5

19.8

20.6

2.4

2.1

Alkem Laboratories Ltd

Accumulate

1,846

2,079

22,071

6,320

7,341

17.5

19.8

72.7

96.6

25.4

19.1

4.5

3.8

16.7

18.7

3.4

2.9

Aurobindo Pharma

Buy

690

823

40,400

17,086

19,478

22.1

22.0

44.7

51.4

15.4

13.4

3.4

2.8

24.7

22.7

2.5

2.2

Aventis*

Neutral

4,040

9,305

2,508

2,862

16.8

139.9

153.8

28.9

26.3

4.2

3.4

23.5

25.8

3.3

2.7

Cadila Healthcare

Reduce

454

426

46,473

11,584

13,228

20.3

20.4

18.7

21.3

24.3

21.3

5.4

4.4

24.6

22.9

3.8

3.3

Cipla

Sell

570

458

45,851

16,619

19,437

15.4

16.2

19.7

24.3

28.9

23.5

3.3

2.9

12.0

13.2

2.9

2.5

Dr Reddy's

Neutral

2,308

38,257

15,844

17,973

17.6

18.2

91.7

111.0

25.2

20.8

2.9

2.6

11.9

13.0

2.6

2.3

GSK Pharma*

Neutral

2,394

20,276

3,260

3,651

15.0

18.0

46.1

58.6

51.9

40.9

10.7

11.0

20.0

26.5

6.1

5.6

Indoco Remedies

Sell

205

153

1,889

1,154

1,310

14.9

11.3

12.7

18.1

16.1

2.6

2.3

15.0

1.8

1.5

www.angelbroking.com

Stock Watch

September 28, 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

Ipca labs

Accumulate

497

540

6,272

3,593

4,022

14.5

15.5

19.4

25.2

25.6

19.7

2.3

2.1

9.5

11.2

1.8

1.6

Lupin

Buy

998

1,467

45,105

18,657

21,289

21.3

23.3

52.8

66.7

18.9

15.0

2.9

2.4

16.3

17.5

2.4

2.0

Natco Pharma

Neutral

769

13,412

1,836

1,946

31.8

28.9

22.1

20.6

34.8

37.3

7.0

6.2

20.1

16.7

7.2

6.7

Sun Pharma

Accumulate

495

558

118,751

32,899

36,451

26.9

25.4

31.6

32.3

15.7

15.3

2.8

2.4

18.7

18.8

3.2

2.8

Syngene International

Accumulate

489

557

9,772

1,402

1,823

32.8

36.0

15.9

20.7

30.8

23.7

5.7

4.7

18.7

20.0

6.9

5.3

Power

Tata Power

Neutral

21,138

32,547

33,806

20.5

4.7

5.4

16.6

14.6

1.6

1.4

10.5

1.6

NTPC

Neutral

165

136,009

86,070

101,246

28.3

30.7

12.9

16.2

12.8

10.2

1.3

1.2

10.6

12.4

2.9

2.6

Power Grid

Accumulate

207

223

108,529

29,183

32,946

89.7

90.0

18.0

20.8

11.6

10.0

1.9

1.7

17.7

18.2

7.7

7.1

Real Estate

Prestige Estate

Neutral

267

10,014

4,607

5,146

21.0

22.2

7.9

9.8

33.8

27.3

2.1

1.9

10.3

12.0

3.3

3.0

MLIFE

Accumulate

468

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

385

154,040

97,903

105,233

36.0

36.3

9.3

11.1

41.4

34.9

2.0

1.9

5.0

5.6

2.5

2.3

Idea Cellular

Neutral

27,196

35,012

37,689

27.1

27.7

(4.4)

(2.7)

1.2

(6.8)

(4.6)

2.1

1.9

zOthers

Abbott India

Neutral

4,167

8,854

3,244

3,723

14.9

16.1

167.5

209.4

24.9

19.9

5.5

4.6

23.7

24.8

2.4

2.0

Asian Granito

Buy

473

570

1,424

1,169

1,286

12.5

16.0

19.7

29.6

24.0

3.2

2.8

10.7

11.6

1.5

1.3

Bajaj Electricals

Accumulate

355

395

3,608

4,646

5,301

6.7

7.6

16.1

22.3

22.1

15.9

3.6

3.1

16.4

19.2

0.8

0.7

Banco Products (India)

Neutral

205

1,469

1,530

1,695

13.2

12.7

19.0

20.0

10.8

10.3

1.7

1.5

0.2

0.9

96.4

Coffee Day Enterprises

Neutral

211

4,355

3,494

3,913

17.4

18.0

4.8

5.7

37.1

1.9

1.8

0.1

1.7

1.5

Ltd

Elecon Engineering

Neutral

584

171

201

15.0

16.2

36.0

43.0

1.5

1.2

0.1

2.8

2.4

Garware Wall Ropes

Neutral

852

1,864

928

1,003

15.2

39.4

43.2

21.6

19.7

3.6

3.0

16.5

15.4

1.9

1.7

Goodyear India*

Neutral

806

1,860

1,717

1,866

11.8

12.3

47.9

49.8

16.8

16.2

2.6

2.3

15.6

15.7

0.8

111.4

Hitachi

Neutral

1,854

5,042

2,355

2,715

10.3

10.8

49.0

60.9

37.8

30.5

8.9

7.0

0.2

2.2

1.9

HSIL

Neutral

387

2,795

2,240

2,670

14.6

15.0

17.0

22.0

22.7

17.6

1.9

1.8

0.1

1.5

1.2

Interglobe Aviation

Neutral

1,057

38,230

22,570

27,955

14.2

15.0

63.6

81.8

16.6

12.9

8.8

7.4

0.5

0.6

1.4

1.0

Jyothy Laboratories

Neutral

383

6,962

1,781

2,044

14.1

15.0

9.4

10.5

41.0

36.5

8.7

8.2

0.2

4.1

3.5

Linc Pen & Plastics

Neutral

226

335

420

462

9.3

15.3

17.1

14.8

13.2

2.5

2.6

16.9

19.5

0.9

0.8

M M Forgings

Neutral

617

745

542

642

20.1

21.0

41.6

56.8

14.8

10.9

2.0

1.7

0.1

0.2

1.8

1.6

Mirza International

Neutral

156

1,877

1,148

1,285

18.0

8.0

9.4

19.4

16.7

3.2

2.7

16.3

16.1

1.8

1.6

Navkar Corporation

Buy

183

265

2,605

561

617

41.5

11.5

12.7

15.9

14.4

1.7

1.5

10.5

10.4

5.3

4.6

Nilkamal

Neutral

1,548

2,310

2,317

2,525

11.4

11.1

96.0

105.0

16.1

14.7

2.7

2.4

0.2

1.0

0.9

www.angelbroking.com

Stock Watch

September 28, 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

Parag Milk Foods

Neutral

236

1,982

1,987

2,379

7.6

9.0

12.4

18.3

19.0

12.9

2.7

2.3

8.2

13.2

1.1

0.9

Radico Khaitan

Neutral

154

2,044

1,811

1,992

13.2

8.1

8.8

19.0

17.4

1.9

2.1

10.1

12.0

1.5

1.3

Relaxo Footwears

Neutral

494

5,929

1,981

2,310

13.7

14.5

12.0

15.5

41.1

31.8

8.0

6.5

0.2

3.1

2.6

Siyaram Silk Mills

Accumulate

2,179

2,500

2,043

1,769

1,981

12.7

113.1

131.1

19.3

16.6

3.0

2.6

15.5

1.3

1.2

Styrolution ABS India* Neutral

846

1,488

1,800

1,980

8.0

8.1

42.0

46.2

20.1

18.3

2.3

2.0

0.1

0.9

Surya Roshni

Neutral

292

1,279

4,870

5,320

7.7

7.8

22.8

28.1

12.8

10.4

1.7

1.5

0.1

0.5

0.4

TVS Srichakra

Neutral

3,114

2,385

2,729

2,893

12.7

12.5

248.5

265.0

12.5

11.8

3.6

2.9

0.3

0.9

0.8

Visaka Industries

Neutral

580

921

1,104

1,214

12.1

12.6

31.0

37.9

18.7

15.3

2.3

2.0

0.1

1.1

0.9

VIP Industries

Buy

241

300

3,402

1,450

1,693

10.4

10.5

6.5

7.8

36.8

30.8

7.8

6.8

21.1

22.1

2.3

2.0

Navin Fluorine

Accumulate

659

730

3,248

945

1,154

22.4

22.6

28.7

34.8

23.0

19.0

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 September 27, 2017

www.angelbroking.com

Market Outlook

September 28, 2017

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make

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