Market Outlook

October 30, 2017

Market Cues

Domestic Indices

Chg (%)

(Pts)

(Close)

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

BSE Sensex

0.0

33,157

US stock markets hit new peaks on Friday after forecast-beating results from the

Nifty

(0.2)

(21)

10,323

technology companies including Google’s parent company Alphabet, Amazon and

Mid Cap

0.3

16,380

Microsoft.

Small Cap

0.3

17,304

Bankex

(0.8)

(234)

28,096

The majority of the European markets ended Friday's session with modest gains.

Uncertainty over the future of Catalonia was overshadowed by the continued

weakening of the Euro. The value of the currency has been falling since the

Global Indices

Chg (%)

(Pts)

(Close)

European Central Bank pledged to continue with bond purchases beyond September

Dow Jones

0.3

23,401

2018 yesterday, despite strong growth.

Nasdaq

(0.1)

(7)

6,557

FTSE

0.3

7,505

Indian shares ended a lackluster session on a flat note Friday as mixed earnings

results prompted traders to book some profits at higher levels after recent sharp

Nikkei

1.2

269

22,008

gains.

Hang Seng

0.8

236

28,439

Shanghai Com

0.3

3,417

News Analysis

 Maruti Suzuki Q2 net up 3.4% at `2,484cr

Advances / Declines

BSE

NSE

Detailed analysis on Pg2

Advances

1,373

906

Investor’s Ready Reckoner

Declines

1,351

835

Unchanged

147

Key Domestic & Global Indicators

Stock Watch: Latest investment recommendations on 150+ stocks

Refer Pg5 onwards

Volumes (` Cr)

BSE

5,595

Top Picks

NSE

36,894

CMP

Target

Upside

Company

Sector

Rating

(`)

(%)

Blue Star

Capital Goods Accumulate

792

867

9.5

Net Inflows (` Cr)

Net

Mtd

Ytd

Dewan Housing Finance

Financials

Accumulate

612

670

9.6

FII

6,812

349

36,879

Asian Granito

Other

Buy

483

570

18.0

MFs

691

8,851

95,195

Navkar Corporation

Other

Buy

194

265

36.9

KEI Industries

Capital Goods

Buy

324

380

17.2

More Top Picks on Pg4

Top Gainers

Price (`)

Chg (%)

Unitdspr

3,029

17.6

Key Upcoming Events

Consensus

Fconsumer

7.0

Date

Region

Event Description

Reading Expectations

Enginersin

181

7.0

Oct 30

Euro Zone Euro-Zone Consumer Confidence

(1.00)

Sparc

380

6.9

Oct 31

Consumer Confidence

119.80

121.00

Oct 31

China

PMI Manufacturing

52.40

52.10

Niittech

644

5.9

Oct 31

Euro Zone Euro-Zone GDP s.a. (QoQ)

0.70

0.50

Nov01

Initial Jobless claims

233.00

Top Losers

Price (`)

Chg (%)

More Events on Pg7

Infratel

419

(8.0)

Idbi

(8.0)

Pnb

196

(8.0)

Albk

(7.8)

Yesbank

307

(7.4)

As on October, 27 2017

www.angelbroking.com

Market Outlook

October 30, 2017

News Analysis

Maruti Suzuki Q2 net up 3.4% at `2,484cr

Country's largest carmaker Maruti Suzuki India posted 3.4 per cent rise in net

profit at `2,484.3cr for the second quarter ended September 30. The company

had reported a net profit of `2,401.5cr for the same period of previous fiscal.

Net sales rose 7 per cent to `21,438.1cr for the quarter under review, as against

`20,048.6cr a year ago, Maruti Suzuki India (MSI) said in a statement. The

company said its net profit increased by only 3.4 per cent due to lower non

operating income as the yields of investment were lower compared to last year.

Moreover, there was some impact of commodities and advertisement expenses

along with increase in effective tax rates, it added. During July-September period,

the company sold a total of 4,92,118 vehicles, including 34,717 in overseas

markets, a growth of 17.6 per cent over the same period a year ago.

Economic and Political News

 Telangana's `800cr private rail coach factory to generate 2,000 jobs

 UP govt raises cane price by 3.3% in FY18

 Coast Guard's `32,000cr expansion plan to see higher pvt participation

Corporate News

 Indian Oil aims 13.5 mn tonnes of LNG import capacity in 5 years

 L&T to set up `500cr missile systems plant for armed forces

 ITC Q2 net increases nearly 6% at `2,640cr

 PVR Q2 profit down 15% to `25cr

www.angelbroking.com

Market Outlook

October 30, 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

22,328

1,867

2,079

11.3

more products in USA, which bodes for its international

business.

We expect the company would report strong profitability

Asian Granito

1,454

483

570

18.0

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

7,584

792

867

9.5

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

19,175

612

670

9.6

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

7,678

127

180

41.7

Increasing share of CASA will help in NIM

improvement.

High order book execution in EPC segment, rising B2C

KEI Industries

2,521

324

380

17.2

sales and higher exports to boost the revenues and

profitability

Expected to benefit from the lower capex requirement

Music Broadcast

2,157

378

434

14.8

and 15 year long radio broadcast licensing.

Massive capacity expansion along with rail advantage

Navkar Corporation

2,761

194

265

36.9

at ICD as well CFS augur well for the company

Strong brands and distribution network would boost

Siyaram Silk Mills

2,838

605

650

7.4

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

2,139

359

435

21.3

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

2,45,132

8,115

8,658

6.7

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

2,638

490

655

33.7

year; change in borrowing mix will help in NIM

improvement..

Source: Company, Angel Research

www.angelbroking.com

Market Outlook

October 30, 2017

Key Upcoming Events

Result Calendar

D ate

C ompany

October 30, 2017

U nited Phosphorus, LMW, HDFC, IDFC, LIC Housi ng Fin., Ce ntral Bank, Marico, T ata Steel, Lupin

October 31, 2017

Blue Star, IDBI Bank, Syndicate Bank, Dabur India, KPIT Cummins, D B Corp, JSW Steel , L G Balakrishnan & Bros

Source: Bloomberg, Angel Research

Global economic events release calendar

Bl oomberg Data

D ate

Time

C ountry

Event Description

Unit

Period

L ast Reporte d

E stimate d

Oct 30, 2017

3:30 PMEuro Zone Euro-Zone Consumer Confidence

Value

Oct F

(1.00)

Oct 31, 2017

7:30 PMUS

Consumer Confidence

S.A./ 1985=100

Oct

119.80

121.00

6:30 AMChina

PMI Manufacturing

Value

Oct

52.40

52.10

3:30 PMEuro Zone Euro-Zone GDP s.a. (QoQ)

% Change

3Q A

0.70

0.50

Nov 01, 2017

6:00 PMUS

Initial Jobless claims

Thousands

Oct 28

233.00

3:00 PMUK

PMI Manufacturing

Value

Oct

55.90

Nov 02, 2017

11: 30 PMUS

FOMC rate decision

Nov 1

1.25

2:25 PMGermany PMI Manufacturing

Value

Oct F

60.50

2:25 PMGermany Unempl oyment change (000's)

Thousands

Oct

(22.00)

(10.00)

5:30 PMUK

BOE Announce s rate s

% Ratio

Nov 2

0.25

0.50

Nov 03, 2017

6:00 PMUS

Change in N onfarm payrolls

Thousands

Oct

(33.00)

310.00

6:00 PMUS

Unnemployment rate

Oct

4.20

Nov 06, 2017

2:25 PMGermany PMI Services

Value

Oct F

55.20

Nov 08, 2017

China

Exports YoY%

% Change

Oct

8.10

Nov 09, 2017

7:00 AMChina

Consumer Price Index (YoY)

% Change

Oct

1.60

Source: Bloomberg, Angel Research

www.angelbroking.com

Market Outlook

October 30, 2017

Macro watch

Exhibit 1: Quarterly GDP trends

Exhibit 2: IIP trends

(%)

10.0

6.0

9.1

5.1

8.8

9.0

5.0

4.4

4.3

8.0

7.9

4.2

7.6

7.5

8.0

7.3

7.2

4.0

3.5

7.0

3.2

2.9

7.0

6.1

3.0

2.4

5.7

6.0

2.0

1.2

0.9

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

(%)

4.5

4.2

54.0

3.9

4.0

3.6

3.7

52.0

3.4

3.3

3.5

3.2

3.0

50.0

3.0

2.2

2.4

48.0

2.5

2.0

46.0

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

5.50

40.0

5.00

30.0

4.50

20.0

4.00

10.0

3.50

0.0

3.00

Source: Bloomberg, Angel Research

Source: RBI, Angel Research

www.angelbroking.com

Stock Watch

October 30, 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

245

209

4,772

1,873

2,099

15.0

9.5

10.5

25.8

23.4

3.9

3.6

15.8

16.0

2.4

2.2

United Phosphorus

Neutral

830

42,142

18,922

21,949

18.0

18.5

36.2

45.6

22.9

18.2

4.8

4.0

22.7

23.8

2.4

2.0

Auto & Auto Ancillary

Ashok Leyland

Neutral

128

37,460

23,339

27,240

10.1

10.8

4.7

6.2

27.5

20.6

5.5

4.9

20.0

23.6

1.6

1.3

Bajaj Auto

Neutral

3,290

95,190

23,936

27,955

19.5

20.1

142.7

167.3

23.1

19.7

5.0

4.5

21.8

22.8

3.6

3.0

Bharat Forge

Buy

672

875

31,274

7,637

8,755

21.7

23.2

36.1

47.3

18.6

14.2

3.3

2.8

18.5

20.8

4.0

3.4

Eicher Motors

Neutral

31,783

86,521

19,043

22,837

19.5

19.9

835.4

1,019.0

38.1

31.2

14.2

11.0

40.9

37.8

4.4

3.6

Gabriel India

Neutral

197

2,836

1,782

2,033

9.7

10.2

7.1

8.9

27.8

22.3

5.6

4.8

21.0

22.2

1.5

1.3

Hero Motocorp

Accumulate

3,797

4,129

75,826

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

2,614

1,441

1,662

14.4

14.8

13.9

17.6

4.7

3.7

1.3

1.0

30.0

31.0

1.8

1.5

Mahindra and Mahindra Neutral

1,386

86,080

46,971

53,816

13.6

14.0

67.7

79.8

20.5

17.4

2.9

2.6

15.0

15.9

1.7

1.4

Maruti

Accumulate

8,115

8,658

245,132

81,825

101,245

15.0

283.5

356.0

28.6

22.8

6.3

5.1

21.9

22.4

2.7

2.1

Minda Industries

Neutral

812

7,015

4,328

5,084

11.0

11.9

27.3

36.4

29.8

22.3

6.3

4.9

23.1

25.6

1.7

1.4

Motherson Sumi

Neutral

358

75,270

55,937

64,445

10.8

11.4

16.9

21.1

21.2

17.0

4.7

4.8

25.2

25.4

1.4

1.2

Tata Motors

Neutral

430

124,170

303,167

343,649

11.8

13.8

33.1

54.7

13.0

7.9

2.1

1.7

16.9

23.0

0.5

0.4

TVS Motor

Neutral

718

34,114

13,992

16,216

9.0

9.4

17.1

20.3

42.1

35.4

11.2

8.7

29.7

27.7

2.4

2.0

Amara Raja Batteries

Buy

685

858

11,699

6,140

7,122

14.3

15.6

29.3

39.0

23.4

17.6

4.0

3.3

17.1

19.0

1.9

1.6

Exide Industries

Neutral

203

17,268

8,689

9,854

15.1

15.2

9.7

11.0

21.1

18.5

3.7

3.3

15.7

16.1

1.7

1.5

Apollo Tyres

Neutral

244

12,397

15,739

17,326

13.3

14.6

20.4

26.7

11.9

9.1

1.5

1.3

20.4

26.7

1.0

0.9

Ceat

Neutral

1,685

6,814

6,661

7,717

11.1

14.2

116.2

178.2

14.5

9.5

2.5

2.1

15.2

21.3

1.1

1.0

JK Tyres

Neutral

146

3,313

8,318

9,239

16.2

16.4

21.0

27.5

7.0

5.3

1.4

1.1

19.1

20.4

0.8

0.7

Swaraj Engines

Neutral

2,005

2,490

788

889

16.4

16.5

71.6

81.0

28.0

24.8

8.1

7.5

29.6

31.0

2.8

2.4

Subros

Neutral

263

1,575

1,855

2,135

11.6

11.8

10.3

14.7

25.6

17.9

3.9

3.3

15.8

19.1

1.1

0.9

Capital Goods

BEML

Neutral

1,705

7,101

4,286

5,194

7.1

8.2

42.9

58.1

39.7

29.4

3.3

3.0

7.6

8.7

1.7

1.4

Bharat Electronics

Neutral

172

42,334

10,258

12,470

19.6

19.5

7.3

8.6

23.6

20.0

0.5

0.4

20.4

21.9

3.6

2.9

Voltas

Neutral

543

17,964

6,778

8,004

9.6

11.0

17.1

22.4

31.8

24.2

7.6

6.6

17.7

19.8

2.3

2.0

BHEL

Neutral

34,952

33,200

39,167

6.8

9.5

6.2

11.2

15.4

8.5

0.7

4.6

8.0

0.6

0.5

Blue Star

Accumulate

792

867

7,584

5,220

6,207

6.3

6.6

16.8

22.3

47.1

35.5

9.4

8.3

19.9

23.3

1.4

1.2

CG Power and Industrial

Neutral

5,130

6,555

7,292

7.5

0.8

8,185.0

102.3

1.3

0.1

1.2

0.9

0.8

Solutions

Greaves Cotton

Neutral

131

3,198

1,778

1,993

14.7

15.1

8.1

9.1

16.2

14.4

3.6

3.4

21.8

23.6

1.6

1.4

www.angelbroking.com

Stock Watch

October 30, 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

298

350

7,657

9,779

11,113

9.4

9.8

14.2

18.2

21.0

16.4

4.0

3.3

21.1

22.1

1.0

0.9

KEI Industries

Buy

324

380

2,521

3,001

3,391

10.0

13.0

16.1

24.9

20.1

4.5

3.8

18.2

18.7

1.0

0.9

Thermax

Neutral

987

11,755

4,125

4,747

10.3

10.8

26.7

31.5

37.0

31.3

4.1

3.8

11.2

12.0

2.6

2.2

VATech Wabag

Buy

591

681

3,225

3,867

4,126

9.6

10.0

34.9

39.8

16.9

14.8

2.8

2.4

17.7

17.5

0.9

0.8

Cement

ACC

Neutral

1,786

33,538

12,255

13,350

13.5

14.3

58.0

66.2

30.8

27.0

3.6

3.4

11.5

12.2

2.7

2.5

Ambuja Cements

Neutral

279

55,439

10,250

11,450

17.5

19.0

7.2

8.3

38.8

33.6

2.8

2.6

7.0

7.8

5.2

4.6

India Cements

Neutral

195

6,023

6,135

6,750

14.8

15.2

8.5

11.5

23.0

17.0

1.1

4.8

6.2

1.3

1.2

JK Cement

Neutral

1,005

7,026

4,150

4,775

19.2

20.0

49.0

63.5

20.5

15.8

3.2

2.8

17.0

18.5

2.1

1.8

J K Lakshmi Cement

Neutral

443

5,210

3,422

3,757

15.5

17.0

13.5

23.2

32.8

19.1

3.4

2.9

10.8

15.5

1.9

1.7

Orient Cement

Neutral

171

3,504

2,215

3,233

16.8

17.0

5.9

6.9

29.0

24.8

2.2

2.1

10.8

10.1

2.6

1.7

UltraTech Cement

Neutral

4,435

121,767

28,250

35,150

20.2

23.5

77.5

122.2

57.2

36.3

4.8

4.4

9.6

14.8

4.8

3.8

Construction

KNR Constructions

Neutral

254

3,566

1,846

2,203

14.5

12.1

13.7

21.0

18.6

1.2

1.0

17.5

16.7

2.0

1.6

Larsen & Toubro

Neutral

1,224

171,357

95,787

109,476

10.2

11.6

44.5

50.8

27.5

24.1

3.5

3.2

12.9

13.1

2.3

2.1

Gujarat Pipavav Port

Neutral

139

6,727

739

842

61.6

62.7

5.1

6.2

27.3

22.6

3.4

3.3

12.7

14.9

8.6

7.4

PNC Infratech

Neutral

184

4,723

2,040

2,935

13.0

6.4

9.0

28.8

20.5

0.8

0.7

9.7

12.2

2.3

1.7

Simplex Infra

Neutral

526

2,603

6,012

6,619

11.6

11.7

21.1

31.0

25.0

17.0

1.7

1.6

6.5

8.6

1.0

0.9

Sadbhav Engineering

Neutral

316

5,428

3,823

4,426

10.7

10.8

10.3

11.8

30.7

26.8

3.7

3.2

10.1

10.5

1.7

1.5

NBCC

Neutral

255

22,991

9,099

12,706

6.4

7.3

9.6

35.1

26.7

1.6

1.2

27.5

30.5

2.4

1.7

MEP Infra

Neutral

100

1,618

2,403

2,910

18.3

16.8

2.4

6.1

42.3

16.4

16.1

10.8

35.2

55.8

1.8

1.5

SIPL

Neutral

113

3,963

2,060

2,390

46.8

47.7

(5.8)

(3.1)

4.2

4.8

(14.2)

(2.3)

6.7

6.2

Engineers India

Neutral

181

12,224

1,795

2,611

21.1

22.4

5.9

8.1

30.8

22.4

2.2

2.1

12.9

16.1

5.2

3.4

Financials

Axis Bank

Buy

485

580

116,163

32,558

35,843

3.5

3.2

27.8

41.0

17.4

11.8

1.9

1.7

11.4

14.9

Bank of Baroda

Neutral

174

40,162

22,533

26,079

2.4

12.0

20.9

14.5

8.3

0.9

6.6

11.0

Canara Bank

Neutral

404

24,116

17,925

20,235

2.0

2.1

18.5

36.5

21.8

11.1

0.8

3.4

6.2

Can Fin Homes

Buy

496

2,128

6,598

586

741

3.5

107.8

141.0

4.6

3.5

1.0

0.8

24.1

25.6

Cholamandalam Inv. &

Accumulate

1,124

1,230

17,561

2,826

3,307

6.3

53.7

64.6

20.9

17.4

3.6

3.0

18.3

18.9

Fin. Co.

Dewan Housing Finance Accumulate

612

670

19,175

2,676

3,383

2.4

2.7

37.4

49.7

16.4

12.3

2.1

1.9

13.8

16.2

Equitas Holdings

Buy

144

235

4,879

1,125

1,380

9.6

9.8

1.5

6.0

96.0

24.0

2.2

2.0

2.4

8.2

Federal Bank

Neutral

120

23,425

4,896

5,930

2.8

3.1

5.4

7.6

22.4

15.9

1.9

1.8

8.5

11.0

www.angelbroking.com

Stock Watch

October 30, 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

492

655

2,647

376

477

3.6

3.7

33.0

40.0

14.9

12.3

2.7

2.3

20.0

23.0

HDFC Bank

Neutral

1,793

463,337

55,236

63,253

4.5

4.4

68.9

82.4

26.0

21.8

4.5

3.8

18.7

18.5

ICICI Bank

Neutral

301

193,094

42,361

51,378

3.6

3.9

18.4

25.7

16.4

11.7

1.8

1.7

11.3

15.0

Karur Vysya Bank

Buy

127

180

7,678

3,289

3,630

3.7

3.9

10.8

14.1

11.7

9.0

1.4

1.3

12.5

14.7

LIC Housing Finance

Neutral

614

31,009

4,895

6,332

3.4

3.7

50.7

66.8

12.1

9.2

2.4

2.0

21.7

23.8

Punjab Natl.Bank

Neutral

196

41,761

23,708

25,758

2.1

5.9

16.4

33.4

12.0

1.0

0.9

3.0

8.3

RBL Bank

Neutral

524

21,663

2,309

2,888

2.6

2.5

16.4

19.1

32.1

27.5

4.0

3.6

13.3

13.8

Repco Home Finance

Buy

600

825

3,756

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

5,594

3,195

3,567

3.0

3.1

3.0

3.8

10.3

8.1

1.0

0.9

10.5

11.9

St Bk of India

Neutral

311

268,414

105,827

121,056

2.4

2.5

16.1

25.6

19.3

12.2

1.5

1.4

6.6

9.9

Union Bank

Neutral

176

12,752

14,650

16,225

2.3

23.1

32.5

7.6

5.4

0.6

0.5

7.1

9.2

Yes Bank

Neutral

307

70,353

11,088

13,138

3.0

2.9

84.0

99.3

3.7

3.1

0.6

0.5

16.3

16.8

FMCG

Akzo Nobel India

Neutral

1,848

8,863

3,164

3,607

13.8

13.7

58.6

67.9

31.5

27.2

7.7

6.8

24.5

25.1

2.7

2.3

Asian Paints

Neutral

1,187

113,866

17,603

20,615

18.6

2,128.9

2,543.3

0.6

0.5

11.8

9.9

28.0

28.9

6.3

5.3

Britannia

Neutral

4,589

55,095

9,690

11,278

14.8

15.4

84.0

101.0

54.6

45.4

19.9

15.8

40.6

39.0

5.6

4.8

Colgate

Neutral

1,057

28,761

4,420

5,074

24.9

25.3

28.6

32.8

37.0

32.2

14.6

11.8

43.8

40.5

6.3

5.4

Dabur India

Neutral

322

56,800

8,346

9,344

19.6

19.9

7.8

9.0

41.3

35.8

8.3

7.5

25.2

24.8

6.4

5.6

GlaxoSmith Con*

Neutral

4,927

20,723

5,072

5,760

18.2

18.4

176.3

199.2

28.0

24.7

5.9

5.4

21.2

21.7

3.4

2.9

Godrej Consumer

Neutral

925

63,016

10,171

11,682

20.8

21.5

21.7

27.1

42.6

34.1

9.6

8.2

22.3

23.4

6.3

5.4

HUL

Neutral

1,257

272,161

37,077

41,508

20.3

21.8

5,189.9

6,318.5

0.2

38.3

32.7

74.8

82.0

7.2

6.4

ITC

Neutral

269

328,077

44,588

49,853

37.0

37.3

9.6

11.0

28.1

24.5

6.9

6.6

25.1

27.3

6.8

6.1

Marico

Neutral

311

40,114

6,788

7,766

18.5

19.2

7.1

8.5

43.8

36.6

15.3

13.1

36.9

38.0

5.8

5.0

Nestle*

Neutral

7,166

69,089

10,083

11,182

20.0

20.9

119.7

141.3

59.9

50.7

211.0

192.8

36.7

39.8

6.5

5.8

Tata Global

Neutral

221

13,916

7,121

7,641

11.9

12.3

6.9

8.0

32.0

27.6

2.1

2.0

6.8

7.2

1.8

1.6

Procter & Gamble

Neutral

8,620

27,981

3,034

3,579

27.1

27.7

167.7

198.8

51.4

43.4

13.8

11.9

28.8

29.5

8.6

7.2

Hygiene

HCL Tech^

Buy

858

1,014

122,393

52,342

57,053

20.9

62.8

67.6

13.7

12.7

3.1

2.6

22.4

20.6

2.0

1.7

Infosys

Buy

947

1,179

217,629

73,963

80,619

26.0

64.4

69.3

14.7

13.7

2.9

2.7

19.7

19.6

2.4

2.1

TCS

Neutral

2,579

508,213

127,403

138,870

27.6

144.5

156.0

17.9

16.5

5.3

4.9

29.7

29.8

3.7

3.3

Tech Mahindra

Accumulate

476

533

46,462

31,015

33,496

15.0

35.6

38.1

13.4

12.5

2.3

2.1

17.0

16.3

1.3

1.1

www.angelbroking.com

Stock Watch

October 30, 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

297

144,346

58,536

61,858

20.3

18.2

19.1

16.3

15.5

2.5

2.2

14.6

13.4

2.4

2.3

Media

D B Corp

Neutral

369

6,792

2,404

2,625

30.5

31.5

23.7

26.9

15.6

13.7

3.7

3.1

23.5

22.8

2.7

2.4

HT Media

Neutral

102

2,385

2,589

2,830

15.1

15.4

8.3

10.9

12.3

9.4

1.0

0.9

8.4

10.4

0.5

0.3

Jagran Prakashan

Buy

180

225

5,891

2,541

2,835

28.5

28.7

12.7

14.1

14.2

12.8

2.9

2.6

21.3

21.4

2.2

1.9

Sun TV Network

Neutral

842

33,200

3,238

3,789

51.9

55.1

30.9

38.0

27.3

22.2

7.8

6.8

30.0

31.0

9.8

8.2

Hindustan Media

Neutral

240

1,761

1,002

1,074

23.3

23.5

29.2

33.8

8.2

7.1

1.3

1.1

15.6

15.4

0.8

0.5

Ventures

TV Today Network

Buy

357

435

2,129

667

727

27.7

18.6

20.1

19.2

17.8

3.0

3.1

15.6

17.3

2.7

2.6

Music Broadcast Limited Accumulate

378

434

2,157

271

317

91.0

109.0

6.0

10.0

63.0

37.8

3.9

3.6

6.5

9.3

7.5

6.2

Metals & Mining

Coal India

Neutral

291

180,542

82,301

91,235

17.0

18.0

17.1

20.5

17.0

14.2

3.2

3.0

45.0

55.0

1.9

1.7

Hind. Zinc

Neutral

316

133,499

22,108

24,555

57.0

58.0

22.1

26.3

14.3

12.0

4.6

3.8

32.0

35.0

5.0

4.2

Hindalco

Neutral

271

60,701

102,350

105,355

13.5

14.5

21.5

24.5

12.6

11.0

1.7

1.5

15.0

15.2

1.2

1.1

JSW Steel

Neutral

265

64,153

64,500

68,245

21.1

21.5

20.1

21.2

13.2

12.5

2.4

2.1

1.7

1.6

NMDC

Neutral

129

40,767

10,209

11,450

47.0

48.0

11.1

12.1

11.6

10.7

1.6

1.5

3.5

3.2

SAIL

Neutral

33,020

54,100

63,555

3.0

10.0

(10.0)

1.5

53.3

1.1

1.6

1.4

Vedanta

Neutral

340

126,329

81,206

87,345

28.0

29.0

26.5

33.5

12.8

10.1

2.9

2.5

2.3

2.0

Tata Steel

Neutral

726

70,535

121,445

126,500

16.2

17.2

65.4

81.3

11.1

8.9

1.8

1.5

1.1

1.0

Oil & Gas

GAIL

Neutral

471

79,635

53,115

52,344

14.2

15.3

30.0

31.1

15.7

15.1

2.0

1.8

1.2

ONGC

Neutral

184

235,554

83,111

84,934

44.2

44.9

16.4

16.9

11.2

10.9

1.4

1.3

2.7

Indian Oil Corp

Neutral

415

201,496

396,116

432,560

8.5

8.8

40.1

42.2

10.4

9.8

1.8

1.6

0.7

0.6

Reliance Industries

Neutral

929

604,496

257,711

267,438

17.0

18.2

89.1

89.5

10.4

1.0

0.9

2.0

1.9

Pharmaceuticals

Alembic Pharma

Buy

498

600

9,392

3,903

4,584

18.2

19.2

21.8

27.2

22.9

18.3

4.2

3.5

19.8

20.6

2.4

2.1

Alkem Laboratories Ltd

Accumulate

1,867

2,079

22,328

6,320

7,341

17.5

19.8

72.7

96.6

25.7

19.3

4.5

3.8

16.7

18.7

3.5

2.9

Aurobindo Pharma

Accumulate

761

823

44,568

17,086

19,478

22.1

22.0

44.7

51.4

17.0

14.8

3.8

3.0

24.7

22.7

2.7

2.4

Aventis*

Neutral

4,161

9,583

2,508

2,862

16.8

139.9

153.8

29.7

27.1

4.3

3.5

23.5

25.8

3.4

2.8

Cadila Healthcare

Reduce

491

426

50,307

11,584

13,228

20.3

20.4

18.7

21.3

26.3

23.1

5.9

4.8

24.6

22.9

4.2

3.6

Cipla

Sell

623

458

50,156

16,619

19,437

15.4

16.2

19.7

24.3

31.6

25.7

3.6

3.2

12.0

13.2

3.2

2.7

Dr Reddy's

Neutral

2,395

39,714

15,844

17,973

17.6

18.2

91.7

111.0

26.1

21.6

3.0

2.7

11.9

13.0

2.7

2.4

GSK Pharma*

Neutral

2,531

21,439

3,260

3,651

15.0

18.0

46.1

58.6

54.9

43.2

11.3

11.6

20.0

26.5

6.5

5.9

Indoco Remedies

Sell

272

153

2,503

1,154

1,310

14.9

11.3

12.7

24.0

21.4

3.4

3.0

15.0

2.3

2.0

www.angelbroking.com

Stock Watch

October 30, 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

Neutral

524

6,616

3,593

4,022

14.5

15.5

19.4

25.2

27.0

20.8

2.5

2.2

9.5

11.2

1.9

1.7

Lupin

Buy

1,001

1,467

45,218

18,657

21,289

21.3

23.3

52.8

66.7

19.0

15.0

2.9

2.4

16.3

17.5

2.4

2.0

Natco Pharma

Accumulate

965

1,057

16,816

1,886

2,016

32.3

29.5

23.2

22.0

41.7

43.8

8.7

7.7

20.9

17.6

8.8

8.2

Sun Pharma

Neutral

550

132,043

32,899

36,451

26.9

25.4

31.6

32.3

17.4

17.0

3.1

2.7

18.7

18.8

3.6

3.1

Syngene International

Accumulate

501

557

10,021

1,402

1,823

32.8

36.0

15.9

20.7

31.6

24.3

5.9

4.9

18.7

20.0

7.1

5.5

Power

Tata Power

Neutral

23,058

32,547

33,806

20.5

4.7

5.4

18.1

15.9

1.7

1.5

10.5

1.7

1.6

NTPC

Neutral

182

150,438

86,070

101,246

28.3

30.7

12.9

16.2

14.1

11.3

1.5

1.4

10.6

12.4

3.1

2.8

Power Grid

Accumulate

211

223

110,491

29,183

32,946

89.7

90.0

18.0

20.8

11.8

10.2

2.0

1.7

17.7

18.2

7.7

7.2

Real Estate

Prestige Estate

Neutral

301

11,278

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

462

522

2,372

487

590

12.3

17.8

21.0

31.2

22.0

14.8

1.2

1.1

5.2

7.4

3.6

2.9

Telecom

Bharti Airtel

Neutral

485

193,914

97,903

105,233

36.0

36.3

9.3

11.1

52.2

43.9

2.5

2.4

5.0

5.6

2.9

2.7

Idea Cellular

Neutral

33,544

35,012

37,689

27.1

27.7

(4.4)

(2.7)

1.5

(6.8)

(4.6)

2.3

2.0

zOthers

Abbott India

Neutral

4,301

9,139

3,244

3,723

14.9

16.1

167.5

209.4

25.7

20.5

5.7

4.7

23.7

24.8

2.5

2.1

Asian Granito

Buy

485

570

1,458

1,169

1,286

12.5

16.0

19.7

30.4

24.6

3.2

2.9

10.7

11.6

1.5

1.3

Bajaj Electricals

Neutral

385

3,912

4,646

5,301

6.7

7.6

16.1

22.3

23.9

17.3

3.9

3.3

16.4

19.2

0.8

0.7

Banco Products (India)

Neutral

215

1,535

1,530

1,695

13.2

12.7

19.0

20.0

11.3

10.7

1.8

1.6

0.2

0.9

101.4

Coffee Day Enterprises

Neutral

222

4,566

3,494

3,913

17.4

18.0

4.8

5.7

38.9

2.0

1.9

0.1

1.8

1.5

Ltd

Elecon Engineering

Neutral

820

171

201

15.0

16.2

36.0

43.0

2.0

1.7

0.2

0.1

4.2

3.5

Garware Wall Ropes

Neutral

943

2,062

928

1,003

15.2

39.4

43.2

23.9

21.8

3.9

3.4

16.5

15.4

2.1

1.9

Goodyear India*

Neutral

808

1,864

1,717

1,866

11.8

12.3

47.9

49.8

16.9

16.2

2.6

2.3

15.6

15.7

0.8

111.8

Hitachi

Neutral

2,379

6,470

2,355

2,715

10.3

10.8

49.0

60.9

48.6

39.1

11.4

9.0

0.2

2.8

2.4

HSIL

Neutral

410

2,963

2,240

2,670

14.6

15.0

17.0

22.0

24.1

18.6

2.0

1.9

0.1

1.5

1.2

Interglobe Aviation

Neutral

1,202

43,491

22,570

27,955

14.2

15.0

63.6

81.8

18.9

14.7

10.0

8.4

0.5

0.6

1.6

1.2

Jyothy Laboratories

Neutral

375

6,811

1,781

2,044

14.1

15.0

9.4

10.5

40.1

35.7

8.5

8.0

0.2

4.0

3.5

Linc Pen & Plastics

Neutral

247

364

420

462

9.3

15.3

17.1

16.1

14.4

2.7

2.8

16.9

19.5

0.9

0.8

M M Forgings

Neutral

846

1,021

542

642

20.1

21.0

41.6

56.8

20.3

14.9

2.8

2.4

0.1

0.2

2.3

2.0

Mirza International

Neutral

159

1,913

1,148

1,285

18.0

8.0

9.4

19.8

17.0

3.3

2.8

16.3

16.1

1.8

1.6

Navkar Corporation

Buy

193

265

2,746

561

617

41.5

11.5

12.7

16.7

15.2

1.8

1.6

10.5

10.4

5.6

4.9

Nilkamal

Neutral

1,600

2,388

2,317

2,525

11.4

11.1

96.0

105.0

16.7

15.2

2.8

2.5

0.2

1.0

0.9

www.angelbroking.com

Stock Watch

October 30, 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

264

2,223

1,987

2,379

7.6

9.0

12.4

18.3

21.3

14.4

3.0

2.6

8.2

13.2

1.2

1.0

Radico Khaitan

Neutral

214

2,844

1,811

1,992

13.2

8.1

8.8

26.4

24.3

2.7

2.9

10.1

12.0

1.9

1.7

Relaxo Footwears

Neutral

529

6,351

1,981

2,310

13.7

14.5

12.0

15.5

44.1

34.1

8.6

6.9

0.2

3.3

2.8

Siyaram Silk Mills

Accumulate

605

650

2,838

1,769

1,981

12.7

22.6

26.2

26.8

23.1

4.1

3.6

15.5

1.8

1.6

Styrolution ABS India* Neutral

1,029

1,810

1,800

1,980

8.0

8.1

42.0

46.2

24.5

22.3

2.7

2.4

0.1

1.1

1.0

Surya Roshni

Neutral

377

1,654

4,870

5,320

7.7

7.8

22.8

28.1

16.6

13.4

2.2

1.9

0.1

0.6

0.5

TVS Srichakra

Neutral

3,076

2,355

2,729

2,893

12.7

12.5

248.5

265.0

12.4

11.6

3.5

2.9

0.3

0.9

0.8

Visaka Industries

Neutral

677

1,074

1,104

1,214

12.1

12.6

31.0

37.9

21.8

17.9

2.7

2.4

0.1

1.2

1.1

VIP Industries

Accumulate

279

300

3,941

1,450

1,693

10.4

10.5

6.5

7.8

42.6

35.7

9.0

7.9

21.1

22.1

2.7

2.3

Navin Fluorine

Neutral

734

3,621

945

1,154

22.4

22.6

28.7

34.8

25.6

21.1

4.2

3.6

3.4

2.6

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on October 27, 2017

www.angelbroking.com

Market Outlook

October 30, 2017

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

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